PRL GLOBAL LTD — Annual Report 2011

Aug 31, 2011

Appendix 4E Preliminary Final Report 30 June 2011

CI Resources Limited ACN 006 788 754

APPENDIX 4E: PRELIMINARY FINAL REPORT

2011

RESULTS FOR ANNOUNCEMENT TO THE MARKET

This Preliminary Final Report is provided to the Australian Securities Exchange (ASX) under Listing Rule 4.3A

Current reporting period:

30 June 2011

Previous corresponding period: 30 June 2010

RESULTS FOR ANNOUNCEMENT TO THE MARKET

Revenue and netprofit		AUD $’000’s
Revenue from ordinaryactivities	up428%	111,087
Profit from ordinaryactivities after tax attributable to members	down 7%	5,305
Netprofit for theperiod attributable to members	Down 7%	5,305

Dividends

Dividends totalling 3.0 cents per share have been declared and paid during the year ended 30 June 2011. The Directors do not recommend the payment of a final dividend in respect of the year ended 30 June 2011.

Commentary

The Preliminary Final Report of CI Resources Limited (“Company” or “CI Resources”) includes the results of the Consolidated Entity (“Group”), including Phosphate Resources Limited (“PRL”) and Xi Feng International Pte Ltd (“Xi Feng”).

On the 4[th] July 2011, the Company completed a further acquisition of shares in PRL under the Creep provisions of the Corporations Act, taking its holding to 50.49%. The Financial Statements of the Group are accounted for as Consolidated Results for the year ended 30 June 2011, as at 30 June the Shareholding of PRL was 49.93%.

The Group has reported a Group Profit for the year of $8,778M after tax which provides a Profit attributable to members of CI Resources of $5.305M.

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Review of Operations

Phosphate Resources Limited

CI Resources is the controlling shareholder of PRL, and is represented on the Board of PRL by Mr Tee Lip Sin and Mr Phuar Kong Seng.

PRL has posted a post-tax profit of $10.1M for the year ended 30 June 2011, and has paid two dividends during this time. The Company received a total dividend of 0.8M.

During the year PRL divested itself of its interests in China.

As previously reported, PRL has this year undertaken a strategic redirection of its interests with the acquisition of Cheekah-Kemayan Plantations Sdn Bhd (“CKP”). CKP owns a 4,000 acre Palm Oil Plantation and Palm Oil Mill in Malaysia. This represents a vertical integration for the company and diversifies the interests of PRL to ensure a long term sustainable future beyond Christmas Island.

The first two months of operations recorded an after tax profit of $888,000. The outlook for palm oil remains robust and the Company is confident that the acquisition will lead to continued positive returns for the long term future.

The Board of PRL have continued to negotiate with the Federal Government over the Clearing Permits on Christmas Island. Although progress has been fairly slow, the Board remains optimistic that progress will be made under the control of the new Minister for Regional Australia – Simon Crean. It continues to remain the goal of the Company to sustain the operational life of the mine until 2019, being the current life of the lease.

Xi Feng International Pte Ltd

CI Resources holds a 100% interest in Xi Feng, although its direct holdings into investments in China have now been divested. Xi Feng currently holds no active or passive investments.

Subsequent Events

As advised to the ASX by announcement on the 5[th] July, 2011, The company completed the acquisition of a further 94,950 shares in Phosphate Resources Limited (75,950 of the 94,950 were transacted in June and are reflected in this financial report). This acquisition is pursuant to the Company’s stated intentions to do so using the creep provisions of the Corporations Act 2001.

The Company now holds 1,728,580 shares of the 3,423,507 issued shares in Phosphate Resources Ltd amounting to 50.49% of the company.

Significant changes in the State of Affairs

There has been no significant changes in the state of affairs of the Consolidated Entity during the financial period other than items mentioned in review of operations.

Net tangible asset backing

	30 June 2011 $’000s 30 June 2010 $’000s
Net assets _Less_intangible assets Net tangible assets of the company	76,777 73,911 (10,551) -
	66,226 73,911

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Fully paid ordinary shares on issue at balance date	72,874,102	72,874,102
Net tangible asset backing per issued ordinary share as at balance date	$0.91	$1.01
Earnings per share (attributable to the members of
the parent)
Basic earnings/(loss) per share (cents)	7.3	7.9

Audit details

The financial statements of CI Resources are currently in the process of being audited.

For and on behalf of the directors

==> picture [167 x 109] intentionally omitted <==

Mr David Somerville Chairman

Dated: 31 August 2011

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CI RESOURCES LIMITED

Consolidated Statement Comprehensive Income For the financial year ended 30 June 2011

Notes Revenue from continuing operations 1 Cost of sales 2a Gross Profit Other income Share of net profits in associates Net Gain on acquisition of Subsidiary Other expenses 2b Finance costs Profit before income tax Income tax expense Profit after income tax Loss/(Profit) attributable to Non Controlling Interests Profit attributable to members of CI Resources Limited Basic and diluted earnings/(loss) per share (attributable to the members of the parent)	Consolidated 2011 $’000s 2010 $’000s 111,087 21,027 (78,525) (14,223)
	32,562 6,804 1,857 1,024 - 1,748 - 1,649 (18,208) (4,038) (626) (151)
	15,586 7,036 (6,808) (1,059) 8,778 5,977 (3,473) (231) 5,305 5,746
	Cents 7.3 Cents 7.9

The above Consolidated Statement Comprehensive Income should be read in conjunction with the accompanying notes.

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CI RESOURCES LIMITED

Statements of Financial Position For the financial year ended 30 June 2011

Current assets Cash and cash equivalents Trade and other receivables Derivative financial assets Inventories Total current assets Non-current assets Term deposits Deferred tax assets Plant & equipment Mine properties Goodwill Total non-current assets Total assets Current liabilities Trade and other payables Borrowings Tax liability Provisions Total current liabilities Non-current liabilities Payables Borrowings Loan from associate Tax liability Provisions Total non-current liabilities Total liabilities Net assets Equity Contributed equity Reserves Accumulated profits/(losses) Dividends paid – current year Non-controlling interest Total equity	Consolidated 2011 $’000s 2010 $’000s 30,516 28,522 24,320 19,304 5,308 5,556 11,912 10,166
	72,056 63,548
	10,188 22,482 5,855 6,515 55,009 10,860 - 5,347 10,551 -
	81,603 **45,204 **
	153,659 108,752
	12,247 5,558 6,536 1,711 2,836 4,074 2,765 2,374
	24,384 13,717
	- 48 23,956 1,954 40 - 12,034 4,705 16,468 14,417
	52,498 21,124
	76,882 34,841
	76,777 73,911
	17,970 17,970 1,653 364 18,144 19,120 (3,357) (6,300)
	34,410 31,154 42,367 42,757
	76,777 73,911

The above Statement of Financial Position should be read in conjunction with the accompanying notes.

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CI RESOURCES LIMITED

Statement of Changes in Equity Statements of Financial Position For the financial year ended 30 June 2011 For the financial year ended 30 June 2011

Consolidated 1 July 2010 Profit for the year Other comprehensive income for the year Total comprehensive income for the year Transactions with owners in their capacity as owners Acquisition of Minority Interest Dividends paid Non-controlling interest arising on acquisition of Phosphate Resources Limited 30 June 2011 1 July 2009 Profit for the year Other comprehensive income for the year Total comprehensive income for the year Transactions with owners in their capacity as owners Dividends paid Non-controlling interest arising on acquisition of Phosphate Resources Limited 30 June 2010	Contributed Equity $’000s Foreign currency translation Reserve $’000s Gain on Acquis- ition of NCI 17,970 364 - - - - - (297) -	Contributed Equity $’000s Foreign currency translation Reserve $’000s Gain on Acquis- ition of NCI 17,970 364 - - - - - (297) -	Retained earnings $’000s Owners of the Parent $’000s Non- controllin g Interest $’000s Total $’000s 12,820 31,154 42,757 73,911 5,305 5,305 3,473 8,778 19 (278) - (278)
	- (297)	-	5,324 5,027 3,473 8,500
	- - - - - -	1,587 - -	- 1,587 (3,863) (2,276) (3,358) (3,358) - (3,358) - - - -
	17,970 67	1,587	14,787 34,410 42,367 76,777
	17,970 364 - - - -	- - -	13,374 31,708 - 31,708 5,746 5,746 231 5,977 - - - -
	- -	-	5,746 5,746 231 5,977
	- - - -	- -	(6,300) (6,300) - (6,300) - - 42,526 42,526
	17,970 364	-	12,820 31,154 42,757 73,911

The above Statement of Changes in Equity should be read in conjunction with the accompanying notes.

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CI RESOURCES LIMITED

Consolidated Statement of Cash Flows For the financial year ended 30 June 2011

Notes Cash flows from operating activities Receipts from customers Payments to suppliers and employees (inclusive of goods and services tax) Interest received Borrowing Costs Net cash flows (used in) / from operating activities before income tax Income taxes paid Net cash flows (used in) / from operating activitiesafter income tax Cash flows from investing activities Movement in term deposits Proceeds from Sale of Investments Purchase of property, plant and equipment Acquisition of Subsidiary net of Cash Acquired Acquisition of Shares in Phosphate Resources Limited Cash acquired on acquisition of Phosphate Resources Limited Dividends received Net cash flows (used in) / from operating activities Cash flows from financing activities Borrowings Net Movement Dividends paid Net cash flows from financing activities Net decrease in cash and cash equivalents held Cash and cash equivalents at the beginning of the financial year Cash and cash equivalents at the end of the financial year	Consolidated 2011 $’000s 2010 $’000s 101,568 17,770 (86,168) (8,334) 1921 409 (26) -
	17,295 9,845 (8058) -
	9,237 9,845
	12,294 (11,981) 3,080 - (1,468) - (44,299) - (1,386) - - 26,714 1,955 1,429
	(29,824) 16,162
	26,738 2,077 (4,157) (6,300)
	22,581 (4,223)
	1,994 21,784 28,522 6,738
	30,516 28,522

The above Consolidated Statement of Cash Flows should be read in conjunction with the accompanying notes.

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CI RESOURCES LIMITED

Notes to the financial statements For the financial year ended 30 June 2011

1. Revenue Revenue from continuing operations Sales Provision of services Interest received 2. Expenses Profit/(Loss) before income tax includes the following expenses: 4a Cost of sales Production costs Shipping & marketing Depreciation 4b Other expenses Net foreign exchange (gain) / loss Redundancy expense Depreciation (other expenses) Loss on Disposal of Subsidiary Loss on Disposal of Investments Administration Bad debt expense / (recovery) (other expenses) Allowance for inventory obsolescence	Consolidated 2011 $’000s 2010 $’000s 99,142 18,363 10,024 2,256 1,921 408 111,807 21,027 56,302 8,970 19,472 4,469 2,751 617
	78,525 14,223
	2,451 207 1,192 153 25 15 985 - 23 - 12,794 3,590 650 73 88 -
	18,208 4,038

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CI RESOURCES LIMITED

Notes to the financial statements For the financial year ended 30 June 2011

3. Entities over which control has been gained or lost during the period

During the current period, the Company gained control of the following entities:

Name of Entity	Date control gained	Consolidated profit / (loss) from ordinary activities since the date in the current period on which control was acquired $000’s
Cheekah – Kemayan Plantations Sdn Bhd	01/05/2011	888

During the current period, the Company lost control of the following entity:

Name of Entity	Phosphate Resources (Huali)Ltd
Date control lost	March 2011
In March 2011 CI Resources 100% owned Subsidiary Xi Feng International Pte Ltd sold it 18.1% Share of Phosphate Resources (HuaLi) Ltd and Phosphates Resources Ltd a 49.93% owned subsidiary sold its 59.275% Share in Phosphate Resources (HuaLi) Ltd. The results of this company was consolidated as part of the Phosphate Resources Ltd Group

4. Controlled entities

CI Resources Limited owns 100% of Xi Feng International Pte Ltd which is incorporated in Singapore and 49.93% of Phosphate Resources Limited (50.49% as at 4[th] July 2011) which is incorporated in Australia. The voting power in respect to Phosphate Resources is in proportion to ownership.

5. Events occurring after reporting date

As advised to the ASX by announcement on the 5[th] July, 2011, The company completed the acquisition of a further 94,950 shares in Phosphate Resources Limited (75,950 of the 94,950 were transacted in June and are reflected in this financial report). This acquisition is pursuant to the Company’s stated intentions to do so using the creep provisions of the Corporations Act 2001.

The Company now holds 1,728,580 shares of the 3,423,507 issued shares in Phosphate Resources Ltd amounting to 50.49% of the company.

Other than that shown above, there are no matters or circumstances that have arisen since 30 June 2010 that has significantly affected, or may significantly affect:

• (a) the consolidated entity’s operations in future financial years, or

• (b) the results of those operations in future financial years, or

• (c) the consolidated entity’s state of affairs in future financial years.

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