PRL GLOBAL LTD — Annual Report 2012

Aug 30, 2012

APPENDIX 4E: PRELIMINARY FINAL REPORT

2012

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 2012

Previous corresponding period: 30 June 2011

RESULTS FOR ANNOUNCEMENT TO THE MARKET

	2012	2011
Revenue and net profit	$'000's	$'000's	% Change
Revenue from ordinary activities	137,292	106,754	up 29%
Profit from ordinary activities after taxattributable to
members	11,318	4,534	up155%
Net profit for the period attributableto members
	11,145	4,256	up155%

Dividends

Dividends totaling 1.0cents per share have been declared and paid during the year ended 30 June 2012. The Directors do not recommend the payment of a final dividend in respect of the year ended 30 June 2012.

Review of Operations

CI Resources Limited (the Company) is the controlling shareholder of Phosphate Resources Limited (PRL), holding 50.49% of the shares of PRL and is represented on the Board by Mr Tee Lip Sin .

The reported results for CI Resources Limited are the consolidated results for the group including PRL and its subsidiaries.

The reported Net Profit attributable to members of the Company is $11.3 million This equates to an Earnings Per Share of 15.53 cents.

This is a terrific result for the Company based upon an outstanding performance for the year by PRL.

PRL has posted a post-tax profit of $23.3 million for the year ended 30 June 2012, and has paid two dividends during this time. The Company received a total dividend of $1.38 million.

The PRL Group consolidated profit was derived from mining, palm oil and ancillary services, with $17.4 million being achieved from the phosphate mining operations on Christmas Island and $5.9 million from palm oil plantation and milling operations in the Malaysian peninsula.

It is recognized by the Board of CI Resources that the Board and Management of PRL have produced a very strong result in difficult circumstances in a year constrained by adverse weather periods, industrial action, and the foundering of the MV Tycoon which limited shipping capacities.

A very substantial achievement for PRL was the securing of the medium term outlook for mining operations on Christmas Island by the obtaining of approvals for clearing permits from the Government after several years of protracted negotiations. This now provides PRL the opportunity to maintain mining operations until the end of the current mining lease in 2019.

The subsidiary company of PRL, CK Plantations Sdn Bhd completed its first full year of operations and was impacted by low palm oil yields across the sector. Whilst budget was not met, the Board of CK Plantations is confident of a return of yields and profitability in coming years.

The Board of CI Resources is supportive of the activities of PRL, which continues to seek new business opportunities, with the clear intent to increase value to shareholders through profits and capital growth for both the short term and long term of the Company.

Subsequent Events

There are no subsequent events to balance date.

Significant changes in the State of Affairs

There have 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 2012	30 June 2011$'000s
	$'000s
Net assets	97,137	76,784
Less intangible assets	(7,158)	(7,635)
Net tangible assets of the company	89,979	69,149
Fully paid ordinary shares on issue at balance date	72,874,102	72,874,102
Net tangible asset backing per issued ordinary share asat balance date	$1.23	$0.95
Earnings per share (attributable to the members ofthe parent)
Basic earnings/(loss) per share (cents)	15.5	6.2

Audit details

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

For and on behalf of the directors

Mr David Somerville Chairman Dated: 31 August 2012

Consolidated Statement Comprehensive Income For the financial year ended 30 June 2012

		Consolidated
	Notes	2012$'000s	2011$'000s
Revenue from continuing operations	1	137,292	106,754
Cost of sales	2a	(87,272)	(77,439)
Gross Profit		50,020	29,315
Other income		161	1,857
Other expenses	2b	(14,630)	(16,883)
Finance costs		(1,511)	(626)
Profit from continuing operations before income tax		34,040	13,663
Income tax expense		(11,168)	(6,433)
Profit from continuing operations after income tax		22,872	7,230
Discontinued operations
Profit / (loss) from discontinued operations after income tax		-	1,555
Profit for the period after income tax		22,872	8,785
Other comprehensive income
Net currency translation differences		(173)	(278)
Other comprehensive income for the year		(173)	(278)
Total comprehensive income for the year		22,699	8,507
Profit is attributable to:
Non-controlling interest		11,554	4,251
Members of CI Resources Limited		11,318	4,534
		22,872	8,785
Total comprehensive income for the year is attributable to:
Non-controlling interest		11,554	4,251
Members of CI Resources Limited		11,145	4,256
		22,699	8,507
Earnings per share for profit from continuing operations attributable to theordinary equity holders of the parent
Basic earnings per share		15.53 cents	4.1 cents
Diluted earnings per shareEarnings per share for profit attributable to the ordinary equity holders of theparent:		15.53 cents	4.1 cents
Basic earnings per share		15.53 cents	6.2 cents
Diluted earnings per share		15.53 cents	6.2 cents

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

Statements of Financial Position For the financial year ended 30 June 2012

	Consolidated
	2012	2011
	$'000s	$'000s
Current assets
Cash and cash equivalents	36,606	30,523
Trade and other receivables	29,486	24,320
Derivative financial assets	384	5,308
Inventories	12,106	11,912
Total current assets	78,582	72,063
Non-current assets
Other Financial Asset	13,016	10,188
Plant & equipment	45,003	45,593
Goodwill	7,158	7,635
Biological assets	11,135	12,332
Deferred tax assets	6,549	5,855
Total non-current assets	82,861	81,603
Total assets	161,443	153,666
Current liabilities
Trade and other payables	10,197	12,247
Borrowings	5,599	6,536
Tax liability	6,307	2,836
Provisions	4,930	2,765
Total current liabilities	27,033	24,384
Non-current liabilities
Borrowings	9,863	23,996
Deferred tax liabilities	10,424	12,034
Provisions	16,986	16,468
Total non-current liabilities	37,273	52,498
Total liabilities	64,306	76,882
Net assets	97,137	76,784
Equity
Contributed equity	17,970	17,970
Reserves	1,653	1,673
Accumulated profits	29,181	18,592
	48,804	38,235
Non-controlling interest	48,333	38,549
Total equity	97,137	76,784

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

Statement of Changes in Equity For the financial year ended 30 June 2012

Consolidated	ContributedEquity$'000s	ForeigncurrencytranslationReserve$'000s	Gain onAcquisition ofNCI	Retainedearnings$'000s	Owners ofthe Parent$'000s	Noncontrolling Interest$'000s	Total$'000s
1 July 2011	17,970	86	1,587	18,592	38,235	38,549	76,784
Profit for the yearOther comprehensive income for	-	-	-	11,318	11,318	11,554	22,872
the year	-	(173)	-	-	(173)	-	(173)
Total comprehensive incomefor the yearTransactions with owners in	-	(173)	-	11,318	11,145	11,554	22,699
their capacity as owners:
Acquisition of Minority InterestDividends paid	--	--	153-	-(729)	153(729)	(414)(1,356)	(261)(2,085)
30 June 2012	17,970	(87)	1,740	29,181	48,804	48,333	97,137
1 July 2010	17,970	364	-	16,244	34,578	39,333	73,911
Profit for the year	-	-	-	4,534	4,534	4,251	8,785
Other comprehensive income forthe year	-	(278)	-	-	(278)	-	(278)
Total comprehensive incomefor the year	-	(278)	-	4,534	4,256	4,251	8,507
Transactions with owners intheir capacity as owners:
Acquisition of Minority InterestDividends paid	--	--	1,587-	-(2,186)	1,587(2,186)	(3,863)(1,172)	(2,276)(3,358)
30 June 2011	17,970	86	1,587	18,592	38,235	38,549	76,784

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

Statement of Cash Flows For the financial year ended 30 June 2012

	Consolidated
	2012$'000s	2011$'000s
Cash flows from operating activities
Receipts from customers	132,296	101,568
Payments to suppliers and employees	(101,333)	(86,168)
(inclusive of goods and services tax)
Interest received	561	1,928
Borrowing Costs	(1,511)	(26)
Net cash flows (used in) / from
operating activities before income tax	30,013	17,302
Income taxes paid	(1,834)	(8,058)
Net cash flows (used in) / from
operating activities after income tax	28,179	9,244
Cash flows from investing activities
Movement in term deposits	(2,827)	12,294
Proceeds from Sale of Investments	-	3,080
Proceeds from sale of property, plant and	1,229	-
equipment
Purchase of property, plant and equipment	(2,986)	(1,468)
Acquisition of Subsidiary net of CashAcquired	-	(44,298)
Acquisition of Shares in Phosphate
Resources Limited	(1,151)	(1,386)
Dividends received	-	1,154
Net cash flows (used in) / from
operating activities	(5,735)	(30,624)
Cash flows from financing activities
Borrowings Net Movement	(15,027)	26,738
Dividends paid	(2,085)	(3,357)
Net cash flows from financing activities	(17,112)	23,381
Net increase in cash and cash equivalentsheld	5,332	2,001
Cash and cash equivalents at the
beginning of the financial year	30,523	28,522
Impact of foreign exchange	751	-
Cash and cash equivalents at the end of	36,606	30,523
the financial year

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

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Notes to the Financial Statements For the financial year ended 30 June 2012

Consolidated
2012$'000s	2011$'000s
126,858	94,803
	10,024
975	1,927
137,292	106,754
65,446	55,290
18,316	19,472
3,510	2,677
87,272	77,439
117	2,274
923	1,192
34	33
	-
	985
	11,661
	650
	88
	16,883
	9,459422-13,109-2514,630

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

During the current year, the Company did not gain or lost control of any entities.

4. Controlled entities

CI Resources Limited owns 100% of Xi Feng International Pte Ltd which is incorporated in Singapore and 50.49% of Phosphate Resources Limited which is incorporated in Australia. The voting power in respect to Phosphate Resources is in proportion to ownership. The company has applied to have Xi Feng International Pte Ltd formally struck off.

5. Events occurring after reporting date

There are no matters or circumstances that have arisen since 30 June 2012 that has significantly affected, or may significantly affect:

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• (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.