PRL GLOBAL LTD — Interim / Quarterly Report 2008

Mar 18, 2008

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Company Announcements Australian Securities Exchange

19 March 2008

Electronic lodgment

Phosphate Resources Half-year Report

CI Resources is the major shareholder in Phosphate Resources Limited, holding 38.77% interest (1,327,180 shares out of 3,423,500 as at 7 December 2007).

The company is pleased to report that the Phosphate Resources December 2007 half year financial statement shows the income and revenue is up by comparison to the same period last year. Revenue from sales increased twenty six percent and profit before tax increased to $4.844m.

Phosphate Resources is in a strong financial position and the company anticipates revenues will continue to grow in the present high demand market.

The financial statement is set out below.

Yours sincerely,

Clive Brown Chairman CI Resources

CI Resources Limited ABN 70 006 788 754 PO Box 449, Belmont WA 6984 Telephone: 9485 7222

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PHOSPHATE RESOURCES LIMITED ACN 009 396 543

HALF-YEAR FINANCIAL REPORT 31 December 2007

PHOSPHATE RESOURCES LIMITED

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Financial Statements for the half-year ended 31 December 2007

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Index

Directors’ Report	Page 1
Income Statement	Page 3
Balance Sheet	Page 4
Statement of Changes in Equity	Page 5
Cash Flow Statement	Page 6
Notes to the Financial Statements	Page 7
Directors’ Declaration	Page 11
Independent Review Report	Page 12
Auditors’ Independence Declaration	Page 14

PHOSPHATE RESOURCES LIMITED

Financial Statements for the half-year ended 31 December 2007

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DIRECTORS’ REPORT

Your Directors submit their report for the half-year ended 31 December 2007.

DIRECTORS – CURRENT

The names of the Company’s Directors in office during the half-year and until the date of this Interim Report are as follows. Directors were in office for the entire period unless otherwise stated.

DIRECTORS – CURRENT

Clive Brown Chairman LAI Ah Hong Managing Director Willy TEO See Khiang Executive Director CHAN Khye Meng Non-Executive Director CHENG Hang OAM Non-Executive Director Tony Brennan Non-Executive Director

REVIEW AND RESULTS OF OPERATIONS

The consolidated entity recognised a profit after tax of $2.97 million [2006: $2.04 million].

As at the date of this report, the group employed 179 people, including casuals and apprentices/trainees, (2006: 202) of which the chief entity employed 160 people (2006: 162) of whom most live on Christmas Island. The chief entity has approximately 255 shareholders (2006: 228), of whom 61% are Christmas Island residents (2006: 72%).

AUDITORS’ INDEPENDENCE DECLARATION

Section 307 (c) of the Corporations Act 2001 requires the company’s auditors, Ernst & Young, to provide the directors with a written Independence Declaration in relation to their review of the financial report for the half year ended 31 December 2007. The written Auditors’ Independence Declaration is attached to the Financial Report.

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PHOSPHATE RESOURCES LIMITED

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Financial Statements for the half-year ended 31 December 2007

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ROUNDING

The amounts contained in this report and in the financial report have been rounded to the nearest $1,000 (where rounding is applicable) under the option available to the Company under the ASIC Class Order 98/0100 . The Company is an entity to which the Class Order applies.

SIGNED IN ACCORDANCE WITH A RESOLUTION OF THE BOARD OF DIRECTORS:

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LAI AH HONG Managing Director

WILLY TEO Executive Director

Dated 14 March 2008

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PHOSPHATE RESOURCES LIMITED

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Financial Statements

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for the half-year ended 31 December 2007

INCOME STATEMENT

For the half-year ended 31 December Notes	Consolidated 31.12.2007 31.12.2006 $000 $000
Revenue 2(a) Cost of Sales 2(b) Gross Profit Other Income 2(c) Finance Costs 2(d) Other Expenses 2(e) Profit Before Income Tax Income Tax Expense Net Profit Attributable to Members of Phosphate Resources Limited	37,653 32,522 (32,710) (27,172)
	4,943 5,350 3,159 76 (267) (292) (2,991) (2,232)
	4,844 2,902 (1,873) (859)
	2,971 2,043

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PHOSPHATE RESOURCES LIMITED

Financial Statements

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for the half-year ended 31 December 2007

BALANCE SHEET

As at 31 December	Consolidated 31.12.2007 $000 30.06.2007 $000
CURRENT ASSETS Cash and cash equivalents Trade and other receivables Inventories Derivative financial assets TOTAL CURRENT ASSETS NON-CURRENT ASSETS Term deposits Property, plant and equipment Goodwill Deferred tax assets TOTAL NON-CURRENT ASSETS TOTAL ASSETS CURRENT LIABILITIES Trade and other payables Interest-bearing loans and borrowings Income tax payable Provisions - employee entitlements TOTAL CURRENT LIABILITIES NON-CURRENT LIABILITIES Interest-bearing loans and borrowings Deferred tax liabilities Provisions TOTAL NON-CURRENT LIABILITIES TOTAL LIABILITIES NET ASSETS EQUITY Equity attributable to equity holders of the parent Contributed equity Retained earnings Reserves TOTAL EQUITY	12,827 7,546 6,026 8,594 9,223 8,113 2,017 942
	30,093 25,195
	5,103 4,517 8,188 8,858 150 150 2,609 2,566
	16,050 16,091
	46,143 41,286
	3,891 3,969 1,687 845 1,891 1,176 1,346 1,425
	8,815 7,415
	138 307 1,060 935 12,904 11,769
	14,102 13,011
	22,917 20,426
	23,226 20,860
	4,509 4,470 18,543 16,252 174 138
	23,226 20,860

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PHOSPHATE RESOURCES LIMITED

Financial Statements

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for the half-year ended 31 December 2007

STATEMENT OF CHANGES IN EQUITY

For the half-year ended 31 December 2007

CONSOLIDATED Balance at 1.7.2006 Foreign currency translation Total income and expense recognised directly in equity Profit attributable to members of parent entity Total income and expense for the period Balance at 31.12.2006 Balance at 1.7.2007 Foreign currency translation Total income and expense recognised directly in equity Profit attributable to members of parent entity Total income and expense for the period Equity transactions: Issue of share capital Dividends paid Balance at 31.12.2007	Contributed Equity Retained Earnings Foreign Currency Translation Reserve Employee Equity Benefits Reserve Total $000 $000 $000 $000 $000 4,470 13,306 (170) 457 18,063
	- - 95 - 95
	- - 95 - 95 - 2,043 - - 2,043
	- 2,043 95 - 2,138
	4,470 15,349 (75) 457 20,201
	4,470 16,252 (319) 457 20,860
	- - 36 - 36
	- - 36 - 36 - 2,971 - - 2,971
	- 2,971 36 - 3,007
	39 - - - 39 - (680) - - (680)
	4,509 18,543 (283) 457 23,226

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PHOSPHATE RESOURCES LIMITED

Financial Statements

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for the half-year ended 31 December 2007

CASH FLOW STATEMENT

For the half-year ended 31 December Notes	Consolidated 31.12.2007 $000 31.12.2006 $000
CASH FLOWS FROM OPERATING ACTIVITIES Receipts from customers Payments to suppliers and employees Interest received Interest paid Income tax paid Receipt of government grants NET CASH FLOWS FROM OPERATING ACTIVITIES CASH FLOWS FROM INVESTING ACTIVITIES Decrease in short term deposits Purchase of property, plant and equipment Proceeds on sale of property, plant and equipment NET CASH FLOWS USED IN INVESTING ACTIVITIES CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from borrowings Finance lease principal paid Payment of dividends Proceeds from issue of shares NET CASH FLOWS FROM FINANCING ACTIVITIES NET INCREASE IN CASH AND CASH EQUIVALENTS Cash and cash equivalents at the beginning of the period CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD 3	39,813 32,246 (35,628) (29,854) 409 205 (42) (97) (1,076) (534) 3,150 -
	6,626 1,966
	(586) (1,157) (887) (44) 96 20
	(1,377) (1,181)
	968 894 (295) (449) (680) - 39 -
	32 445
	5,281 1,230 7,546 3,913
	12,827 5,143

NOTES TO THE FINANCIAL STATEMENTS

1 Basis of Preparation and Accounting Policies

Basis of preparation

This general purpose condensed financial report for the half-year ended 31 December 2007 has been prepared in accordance with AASB 134 “Interim Financial Reporting” and the Corporations Act 2001.

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PHOSPHATE RESOURCES LIMITED

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Financial Statements

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for the half-year ended 31 December 2007

The half-year financial report does not include all notes of the type normally included within the annual financial report and therefore cannot be expected to provide as full an understanding of the financial performance, financial position and financing and investing activities of the consolidated entity as the full financial report.

It is recommended that the half-year financial report be read in conjunction with the annual financial report of Phosphate Resources Limited as at 30 June 2007.

Apart from the changes in accounting policy noted below, the accounting policies and methods of computation are the same as those adopted in the most recent annual financial report.

Changes in accounting policy

Since 1 July 2007, the Group has adopted the following standards and interpretations, mandatory for financial reporting periods beginning on or after 1 July 2007. Adoption of these Standards and Interpretations did not have any material effect on the financial position or performance of the Group.

• AASB 101 (revised October 2006) Presentation of Financial Statements

• AASB 7 Financial Instruments: Disclosures

• AASB 2005-10 Amendments to Australian Accounting Standards (AASB 132, 101, 114, 117, 133, 139, 1, 4, 1023 and 1038)

• AASB 2007-1 Amendments to Australian Accounting Standards arising from Interpretation 11 (AASB 2)

• AASB 2007-4 Amendments to Australian Accounting Standards arising from ED 151 and Other Amendments

• AASB 2007-7 Amendments to Australian Accounting Standards (AASB 1, AASB 2, AASB 4, AASB 5, AASB 107, & AASB 128)

• Interpretation 10 Interim Financial Reporting and Impairment

• Interpretation 11 AASB 2 – Group and Treasury Share Transactions

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PHOSPHATE RESOURCES LIMITED

Financial Statements for the half-year ended 31 December 2007

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NOTES TO THE FINANCIAL STATEMENTS

2 Revenue and Expenses (a) Revenue Phosphate sales Oil sales Stevedoring Finance revenue - interest Other (b) Cost of sales Cost of production: Production costs Royalties Insurance Shipping and marketing costs: Shipping charges Port charges Levy Commission Depreciation: Plant and equipment Total cost of sales (c) Other income Government grants Gains from sale of assets Other income	Consolidated 31.12.2007 $000 31.12.2006 $000 36,135 28,940 170 129 550 1,877 328 205 470 1,371
	37,653 32,522
	16,287 13,750 894 743 671 720
	17,852 15,213
	11,395 9,581 1,077 165 729 564 238 248
	13,439 10,558
	1,419 1,401
	32,710 27,172
	3,150 - 9 20 - 56
	3,159 76

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PHOSPHATE RESOURCES LIMITED

Financial Statements for the half-year ended 31 December 2007

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NOTES TO THE FINANCIAL STATEMENTS

	Consolidated 31.12.2007 $000 31.12.2006 $000
2. Revenue and Expenses (continued) (d) Finance costs Interest expense Finance lease interest Accretion on asset retirement obligations (e) Other expenses Redundancy expense Depreciation Administration and other 3 Reconciliation of Cash and Cash Equivalents Cash at bank 4 Dividends Paid and Proposed Franked dividends declared and paid during the half-year on ordinary shares: 20 cents (2006: nil) Dividends proposed and not yet recognised as a liability Interim franked dividend paid for the half-year 31 December 2007: nil (2006: 15 cents)	18 54 24 43 225 195
	267 292
	589 188 51 65 2,351 1,979
	2,991 2,232
	12,827 5,143
	680 - - - - 510
	680 510

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PHOSPHATE RESOURCES LIMITED

Financial Statements for the half-year ended 31 December 2007

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NOTES TO THE FINANCIAL STATEMENTS

5 Commitments and Contingencies

As at balance sheet date the consolidated entity had commitments totalling approximately $811,000 to purchase plant and equipment. Payment is due during the next six months.

Since the last annual reporting date, there has been no material change to any contingent liabilities or contingent assets.

6 Events after the Balance Sheet Date

No matter or circumstance has arisen since 31 December 2007 that has significantly affected, or may significantly affect, the operations of Phosphate Resources Limited and its controlled entities, the results of those operations, or the state of affairs of Phosphate Resources Limited and its controlled entities in subsequent periods.

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PHOSPHATE RESOURCES LIMITED

Financial Statements for the half-year ended 31 December 2007

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DIRECTORS' DECLARATION

In accordance with a resolution of the directors of Phosphate Resources Limited I state that:

In the opinion of the directors:

1. The financial statements and notes of the consolidated entity are in accordance with the Corporations Act 2001, including:

2. a. Giving a true and fair view of the financial position as at 31 December 2007 and the performance for the half-year ended on that date of the consolidated entity; and

3. b. Complying with Accounting Standard AASB 134: Interim Financial Reporting and the Corporations Regulations 2001; and

4. there are reasonable grounds to believe that the company will be able to pay its debts as and when they become due and payable.

On behalf of the Board

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LAI AH HONG Managing Director

WILLY TEO Executive Director

Perth, 14 March 2008

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PHOSPHATE RESOURCES LIMITED

Financial Statements

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for the half-year ended 31 December 2007

INDEPENDENT REVIEW REPORT

To the Members of Phosphate Resources Limited

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PHOSPHATE RESOURCES LIMITED

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Financial Statements

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for the half-year ended 31 December 2007

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PHOSPHATE RESOURCES LIMITED

Financial Statements for the half-year ended 31 December 2007

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AUDITOR’S INDEPENDENCE DECLARATION

Under Section 307C of the Corporations Act 2001 To the Directors of Phosphate Resources Limited

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