PRL GLOBAL LTD — Interim / Quarterly Report 2013

Feb 27, 2013

APPENDIX 4D – HALF YEAR REPORT

PERIOD ENDED 31 DECEMBER 2012

CI RESOURCES LIMITED AND ITS CONTROLLED ENTITIES ACN 006 788 754

Reporting Period

This information should be read in conjunction with the 30 June 2012 annual financial report.

Current reporting period: 31 December 2012

Previous corresponding period: 31 December 2011

Results for announcement to the market

	31 Dec 2012 $’000’s	31 Dec 2011 $’000’s	% Change
Revenue from continuing operations	95,045	87,395	9%
Profit from ordinary activities after tax attributable to members	10,757	7,016	53%
Net profit for the period Attributable to members	11,093	6,773	63%

Earnings Per Share

	31 Dec 2012	31 Dec 2011
Basic and Diluted	14.76 cents	9.63 cents

Dividends

A final dividend of 1.0 cent per share fully franked was declared in the period and paid in January 2013.

Entities Acquired and Disposed During the Period

The company deregistered it Singaporean registered company during the period, this company was dormant during the period.

APPENDIX 4D – HALF YEAR REPORT (Continued) PERIOD ENDED 31 DECEMBER 2012

CI RESOURCES LIMITED AND ITS CONTROLLED ENTITIES ACN 006 788 754

Net Tangible Asset Backing Per Security

	31 Dec 2012	31 Dec 2011
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	83 cents	55 cents

Significant changes in the state of affairs of the Company

No significant changes took place during the period in the state of affairs of the consolidated entity.

Compliance Statement

The report is based on financial statements reviewed by the auditor, a copy of which is attached.

For and on behalf of the directors:

David Somerville Director Dated: 28 February 2013

CI Resources Limited

Half Year Report For the half-year ended 31 December 2012

Half-year Financial Statements – 31 December 2012

CI Resources Limited ACN 006 788 754

Contents	Page
Directors' report	3
Auditor’s independence declaration	5
Financial report	6
Directors' declaration	18
Independent audit report to the members	19

2

Half-year Financial Statements – 31 December 2012

CI RESOURCES LIMITED

Directors’ report

Your directors present their half year report on the consolidated entity (“Group”) consisting of CI Resources Limited (“CII” or “Company”) and the entities it controlled at the end of, or during, the half-year ended 31 December 2012.

Directors

The following persons were directors of CI Resources Limited for the whole of the half-year and up to the date of this report, unless otherwise stated:

Mr David Somerville

Mr Tee Lip Sin Mr Tee Lip Jen Adrian Gurgone Mr Kelvin Tan Keh Feng Mr Dato’ Kamaruddin (appointed 17 January 2013) Prof. Anthony Brennan (resigned 13 December 2012)

Dividends

Dividends totaling 1.0 cents per share have been declared during the half year ended 31 December 2012 and paid in January 2013.

Review of operations

Financial Position

At the end of the financial period the consolidated entity had net cash balances of $44.093M (30 June 2012: $36.606M) and net assets of $114.099M (30 June 2012: $97.137M).

Total liabilities amounted to $63.229M (30 June 2012: $64.306M), being trade and other creditors, borrowings and taxation liabilities.

CI Resources Limited

During the half year CI Resources continued to acquire shares in Phosphate Resources Limited (PRL). During September 2012 CI Resources acquired a further 100,000 shares under the Creep provisions of the Corporations Act 2001, and as at 31 December 2012 was the largest shareholder in PRL holding a shareholding of 53.41%.

The Company is represented on the Board of PRL by Mr Tee Lip Sin and Mr Dato’ Kamaruddin

PRL reported a post-tax profit of $19.394M for the half-year ended 31 December 2012 (31 December 2011: $14.263M), and has paid one dividend during this period. The Company received a total dividend from PRL of $1.097M (2011: $0.691M) during the half-year.

The Consolidated Entity is reporting a profit attributable to members of $10.757M for the half-year ended 31 December 2012 (31 December 2011: $7.016M).

Earnings per share Basic earnings per share	December 2012 Cents December 2011 Cents
	14.76 9.63

Half-year Financial Statements – 31 December 2012

3

CI RESOURCES LIMITED

Directors’ report

Auditors’ Independence Declaration

A copy of the auditors’ independence declaration as required under section 307C of the Corporations Act 2001 is set out on page 5.

Auditor

Ernst & Young continues in office in accordance with section 327 of the Corporations Act 2001 .

This report is made in accordance with a resolution of the directors.

D Somerville Chairman Perth, Western Australia

28 February 2013

4

Half-year Financial Statements – 31 December 2012

==> picture [103 x 62] intentionally omitted <==

Auditor’s Independence Declaration to the Directors of CI Resources Limited

In relation to our review of the financial report of CI Resources Limited for the half year ended 31 December 2012, to the best of my knowledge and belief, there have been no contraventions of the auditor independence requirements of the Corporations Act 2001 or any applicable code of professional conduct.

==> picture [61 x 42] intentionally omitted <==

Ernst & Young

==> picture [48 x 53] intentionally omitted <==

R J Curtin Partner Perth 28 February 2013

Liability limited by a scheme approved under Professional Standards Legislation

RC:DR:CI RESOURCES:034

CI RESOURCES LIMITED

Consolidated Statement of Comprehensive Income As at 31 December 2012

Notes	Consolidated 2012 $’000s 2011 $’000s
Revenue from continuing operations 2a Cost of sales 2b Gross Profit Other income 2c Finance Costs Other expenses 2d Profit before income tax Income tax expense Net profit for the period Other comprehensive income Items that may be reclassified subsequently to profit or loss: Exchange differences on translation of foreign operations Total comprehensive income for the period Net profit for the period is attributable to: Non-controlling interest Owners of the parent Total comprehensive income for the period is attributable to: Non-controlling interest Owners of the parent Basic and diluted earnings/(loss) per share	95,045 87,395 (55,501) (60,096)
	39,544 27,299 683 491 (553) (787) (9,893) (6,665)
	29,781 20,338 (9,990) (6,260)
	19,791 14,078
	556 (481)
	20,347 13,597
	9,034 10,757 7,062 7,016
	19,791 14,078
	9,254 11,093 6,824 6,773
	20,347 13,597
	Cents 14.76 Cents 9.63

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

6

Half-year Financial Statements – 31 December 2012

CI RESOURCES LIMITED

Consolidated Statement of Financial Position As at 31 December 2012

Notes	Consolidated 31 December 2012 $’000s 30 June 2012 $’000s
Current assets Cash and cash equivalents 3 Trade and other receivables Derivative financial asset Inventories Total current assets Non-current assets Other Financial Asset Plant & equipment Goodwill Biological assets 6 Deferred tax assets Total non-current assets Total assets Current liabilities Trade and other payables Borrowings Tax liability Provisions Total current liabilities Non-current liabilities Borrowings Deferred tax liability Provisions Total non-current liabilities Total liabilities Net assets Equity Contributed equity Reserves Accumulated profits Parent Interests Non-controlling interests Total equity	44,093 36,606 34,563 29,486 331 384 11,214 12,106
	90,201 78,582
	14,220 13,016 48,356 45,003 7,238 7,158 11,333 11,135 5,980 6,549
	87,127 82,861
	177,328 161,443
	9,064 5,731 5,936 4,231 10,137 5,599 6,307 5,814
	24,962 27,857
	9,682 9,863 10,181 10,424 18,404 16,162
	38,267 36,449
	63,229 64,306
	114,099 97,137
	17,970 17,970 3,061 1,653 39,209 29,181
	60,241 48,804 53,858 48,333
	114,099 97,137

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

7

Half-year Financial Statements – 31 December 2012

CI RESOURCES LIMITED

Consolidated Statements of changes in Equity For the half-year ended 31 December 2012

2012 Consolidated	Contributed Equity $’000s Foreign currency translation Reserve $’000s Discount on acquisition of Non- controlling interest Reserve $’000s Retained earnings $’000s Owners of the Parent $’000s Non-controlling Interest $’000s Total $’000s
At the beginning of the period Profit for the period Other comprehensive income Total comprehensive income for the period Transactions with owners in their capacity as owners Dividends paid Acquisition of Non-controlling interest in PRL At the end of the period	17,970 (87) 1,740 29,181 48,804 48,333 97,137
	- - - 10,757 10,757 9,034 19,791 - 336 - - 336 220 556
	- 336 - 10,757 11,093 9,254 20,347
	- - - - - 1,072 (729) - (729) 1,072 (956) (2,772) (1,685) (1,700)
	17,970 249 2,812 39,209 60,240 53,858 114,099

8

Half-year Financial Statements – 31 December 2012

CI RESOURCES LIMITED

Consolidated Statements of changes in Equity For the half-year ended 31 December 2012

2011 Consolidated	Contributed Equity $’000s Foreign currency translation Reserve $’000s Discount on acquisition of Non- controlling interest Reserve $’000s Retained earnings $’000s Owners of the Parent $’000s Non-controlling Interest $’000s Total $’000s
At the beginning of the period Profit for the period Other comprehensive income Total comprehensive income for the period Transactions with owners in their capacity as owners Dividends paid Acquisition of Non-controlling interest in PRL At the end of the period	17,970 86 1,587 13,996 33,639 43,145 76,784
	- - - 7,016 7,016 7,062 14,078 - (243) - - (243) (238) (481)
	- (243) - 7,016 6,773 6,824 13,597
	- - - - - 154 - - - 154 (678) (414) (678) (260)
	17,970 (157) 1,741 21,012 40,566 48,877 89,443

9

Half-year Financial Statements – 31 December 2012

CI RESOURCES LIMITED

Consolidated Statement of Cash Flows For the half-year ended 31 December 2012

Notes	Consolidated 2012 $’000s 2011 $’000s
Cash flows from operating activities Receipts from customers Payments to suppliers and employees (inclusive of goods and services tax) Interest received Interest paid Income taxes paid Net cash inflow/ (outflow) from operating activities Cash flows from investing activities (Increase)/decrease in short term investments Purchase of property and equipment Net cash (outflow)/ inflow from investing activities Cash flows from financing activities Repayment of borrowings Proceeds/ (payment) for finance lease Acquisition of non-controlling interest Dividends paid Net cash (outflow) from financing activities Net increase in cash and cash equivalents held Cash and cash equivalents at the beginning of the financial year Impact of foreign exchange Cash and cash equivalents at the end of the period 3	91,888 (68,225) 96,822 (66,887) 410 498 (253) (487) (7,081) **(6,780) **
	16,739 23,166
	(1,205) (3,013) (4,377) **(1,586) **
	(5,582) (4,599)
	- (4,830) (692) (637) (1,700) (1,286) (946) (678)
	(3,338) (7,431)
	7,819 11,136 36,606 30,523 (332) **801 **
	44,093 42,460

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

10

Half-year Financial Statements – 31 December 2012

CI RESOURCES LIMITED

Notes to the financial statements For the year ended 31 December 2012

1 Basis of Preparation and Accounting Policies

Basis of preparation

This general purpose condensed financial report for the half-year ended 31 December 2012 has been prepared in accordance with AASB 134 Interim Financial Reporting and the Corporations Act 2001.

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.

The half-year financial report should be read in conjunction with the Annual Financial Report of CI Resources Limited as at 30 June 2012.

Apart from the adoption of new or revised standards 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

From 30 June 2012 the Group has adopted the following Standards and Interpretations, mandatory for annual periods beginning on 1 July 2012. Adoption of these standards and interpretations did not have any significant effect on the financial position or performance of the Group.

• AASB 2011-9: Amendments to Australian Accounting Standards – Presentation of Items of Other Comprehensive Income: Makes a number of changes to the presentation of other comprehensive income including presenting separately those items that would be reclassified to profit or loss in the future and those that would never be reclassified to profit or loss and the impact of tax on those items.

The Group has not elected to early adopt any new standards or amendments that are issued but not yet effective.

11

Half-year Financial Statements – 31 December 2012

CI RESOURCES LIMITED

Notes to the financial statements For the year ended 31 December 2012

2 Revenue and Expenses (a) Revenue Phosphate sales Palm oil sales Oil sales Stevedoring Finance revenue – interest Other (b) Cost of sales Cost of production: Production costs Royalties Insurance Shipping costs: Shipping charges Port charges Levy Commission Depreciation: Plant and equipment Total cost of sales (c) Other income Foreign exchange gain Other	Consolidated 31.12.2012 $000 31.12.2011 $000 66,631 48,058 23,103 33,437 366 343 1,002 893 410 498 3,533 4,166
	95,045 87,395
	38,845 47,039 1,028 702 920 891
	40,793 48,632
	11,777 8,329 316 895 888 617 - 69
	12,981 9,910
	1,727 1,554
	55,501 60,096
	673 45 10 446
	683 491

Foreign exchange gain includes $0.647 million relating to the accumulated foreign currency translation reserve which was transferred to statement of comprehensive income as a result of de-registration of Xi Feng International Pte Ltd, a subsidiary of the Group, during the half year ended 31 December 2012.

12

Half-year Financial Statements – 31 December 2012

CI RESOURCES LIMITED

Notes to the financial statements For the year ended 31 December 2012

2 Revenue and Expenses (continued) (d) Other expenses Redundancy expense Depreciation Administration and other Sundry expenses 3 Reconciliation of Cash and Cash Equivalents Cash at bank 4 Dividends Paid and Proposed Franked dividends declared and payable during the half-year on ordinary shares to the owners of the parent: $0.01 (2011: $0.00) Dividends proposed and not yet recognised as a liability	Consolidated 31.12.2012 $000 31.12.2011 $000 112 248 26 16 9,755 6,322 - 79
	9,893 6,665
	31.12.2012 30.06.2011 $000 $000 44,093 42,460
	(729) - - - (729) -

5 Commitments and Contingencies

As at balance sheet date the consolidated entity had no expenditure commitments.

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

13

Half-year Financial Statements – 31 December 2012

CI RESOURCES LIMITED

Notes to the financial statements For the year ended 31 December 2012

6 Biological Assets Carrying amount on acquisition of subsidiary Harvest/Amortisation Effect of foreign exchange Fair value adjustment Carrying amount at end	31.12.2012 30.06.2012 $’000s $’000s 11,135 12,332 - (88) 198 (50) - (1,059)
	11,333 11,135

Biological assets consist of mature oil palm trees.

The Group grows oil palm trees to produce palm oil. The plantation is located in Malaysia.

A valuation was conducted by Jones Lang Wootton, an independent professional valuer, on a subsidiary's oil palm estate development comprising land, ancillary facilities and biological assets, for the purposes of revaluing the biological assets of the subsidiary as at 30 June 2012.

At 31 December 2012, there has been no material change in the fair value of biological assets compared to 30 June 2012.

The Group is exposed to risks in respect of agricultural activity. The agricultural activity of the Group consists of the plantation development and cultivation of palm products.

The primary risk associated with this activity occurs due to the length of time between expending cash on planting and trees reaching production so that cash can be received from the sale of palm oil to third parties. The Group's strategy to manage this risk is to stage the replanting (20-30 year replanting cycle) to reduce the effect on the cash flow.

7 Events after the Balance Sheet Date

No matter or circumstance has arisen since 31 December 2012 that has significantly affected, or may significantly affect, the operations of CI Resources Limited and its controlled entities, or the state of affairs of CI Resources Limited and its controlled entities in subsequent periods.

14

Half-year Financial Statements – 31 December 2012

CI RESOURCES LIMITED

Notes to the financial statements For the year ended 31 December 2012

8 Segment Reporting

Segment Reporting for the half-year ended 31 December 2012

The Group has identified its operating segments based on the internal reports that are reviewed and used by the executive management team (the chief operation decision makers) in assessing performance and in determining the allocation of resource.

The Group has identified its operating segments to be Mining and Farming based on the different operating businesses within the Group. Discrete financial information about each of these operating segments is reported to the chief operation decision makers on a monthly basis.

Mining operating segment primarily involves mining, processing and sale of phosphate rock, phosphate dust and chalk

Farming operating segment primarily involves oil palm cultivation and palm oil processing

Accounting policies and inter-segment transactions

The accounting policy used by the Group in reporting segments internally are the same as those contained in Note 2 to the 30 June 2012 accounts.

Deferred tax assets and liabilities are not allocated to operating segments as they are not considered part of the core operations of any segment.

Revenue Revenue from external customers Interest income Stevedoring Rendering of services Oil sales Total segment revenue Result Segment net operating profit after tax (attributable to parent) Depreciation and amortisation Income tax expense Assets and Liabilities Segment assets Segment liabilities	Half-Year ended 31 December 2012
	Mining Farming Unallocated Total $’000 $’000 $’000 $’000
	66,631 23,103 - 89,734 286 - 124 410 - - 1,002 1,002 - - 3,533 3,533 - - 366 366
	66,917 23,103 5,025 95,045 16,065 2,150 1,576 19,791
	1,142 534 51 1,727 8,862 798 330 9,990 100,654 64,656 12,018 177,328
	47,984 11,822 3,423 63,229

15

Half-year Financial Statements – 31 December 2012

CI RESOURCES LIMITED

Notes to the financial statements For the year ended 31 December 2012

9 Segment reporting (continued)

Segment Reporting for the half-year ended 31 December 2011

In the prior year, management had determined the operating segments based on reports reviewed by the Board (Chief Operations Decision Makers) for making strategic decisions. The company had three operating segments, that being the Sale of Phosphate, Stevedoring Services and Other.

The Other segment consists of the Oil, Australia and Singaporean operations.

Revenue Revenue from external customers Interest income Stevedoring Rendering of services Other services Total segment revenue Result Segment net operating profit after tax (attributable to parent) Depreciation and amortisation Income tax expense Assets and Liabilities Segment assets Segment liabilities	Half-Year ended 31 December 2011
	Mining Farming Unallocated Total $’000 $’000 $’000 $’000
	48,058 33,437 - 81,495 334 - 104 438 - - 843 843 - - 4,166 4,166 - - 661 661
	48,392 33,437 5,774 87,395 11,455 2,052 571 14,078
	1,037 304 213 1,554 5,248 734 278 6,260 85,506 63,840 10,314 159,660
	55,080 13,216 1,921 70,217

Revenue from external customers by geographical locations is detailed below. Revenue is attributed to geographic location based on the location of the customers. The Company does not have external revenues from external customers that are attributable to any foreign country other than as shown:

Australia Malaysia Other foreign countries	1 July 2012 to 31 December 2012 1 July 2011 to 31 December 2011 '000 '000 27 570 23,103 33,437 71,915 53,388
	95,045 87,395

Major customers

The Group has number of customers to which it provides the products. There are no customers of the Group who account for more than 10% of total external revenue in 2012 and 2011.

16

Half-year Financial Statements – 31 December 2012

CI RESOURCES LIMITED

Notes to the financial statements For the year ended 31 December 2012

9 Segment reporting (continued)

Non-Current Assets by geographical regions:

on-Current Assets by geographical regions:
Australia Malaysia Other foreign countries	31 December 30 June 2012 2012 '000 '000 29,341 27,812 54,279 53,124 3,507 1,924
	87,127 82,860

17

Half-year Financial Statements – 31 December 2012

CI RESOURCES LIMITED

Directors’ declaration For the year ended 31 December 2012

In the directors’ opinion:

• (a) The financial statements comprising the Statement of Comprehensive Income, Statement of Financial Position, Statement of Cash Flows, Statement of Changes in Equity and accompanying notes are in accordance with the Corporations Act 2001 , including:

• (i) complying with Accounting Standard AASB 134: Interim Financial Reporting, the Corporations Regulations 2001 and other mandatory professional reporting requirements; and

• (ii) giving a true and fair view of the company and the consolidated entity’s financial position as at 31 December 2012 and of their performance, for the half-year ended on that date; and

• (b) there are reasonable grounds to believe that the company will be able to pay its debts as and when they become due and payable; and

This declaration is made in accordance with a resolution of the directors.

==> picture [59 x 19] intentionally omitted <==

----- Start of picture text -----

D Somerville
Chairman
----- End of picture text -----

Perth 28 February 2013

18

Half-year Financial Statements – 31 December 2012

==> picture [103 x 62] intentionally omitted <==

To the members of CI Resources Limited

Report on the Half-Year Financial Report

We have reviewed the accompanying half-year financial report of CI Resources Limited, which comprises the statement of financial position as at 31 December 2012, the statement of comprehensive income, statement of changes in equity and statement of cash flows for the half-year ended on that date, other selected explanatory notes, and the directors’ declaration of the consolidated entity comprising the company and the entities it controlled at the half-year end or from time to time during the half-year.

Directors’ Responsibility for the Half-Year Financial Report

The directors of the company are responsible for the preparation of the half-year financial report that gives a true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such internal controls as the directors determine are necessary to enable the preparation of the half-year financial report that is free from material misstatement, whether due to fraud or error.

Auditor’s Responsibility

Our responsibility is to express a conclusion on the half-year financial report based on our review. We conducted our review in accordance with Auditing Standard on Review Engagements ASRE 2410 Review of a Financial Report Performed by the Independent Auditor of the Entity , in order to state whether, on the basis of the procedures described, we have become aware of any matter that makes us believe that the financial report is not in accordance with the Corporations Act 2001 including: giving a true and fair view of the consolidated entity’s financial position as at 31 December 2012 and its performance for the half-year ended on that date; and complying with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001 . As the auditor of CI Resources Limited and the entities it controlled during the half-year, ASRE 2410 requires that we comply with the ethical requirements relevant to the audit of the annual financial report.

A review of a half-year financial report consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Australian Auditing Standards and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Independence

In conducting our review, we have complied with the independence requirements of the Corporations Act 2001 . We have given to the directors of the company a written Auditor’s Independence Declaration, a copy of which is included in the Directors’ Report.

Liability limited by a scheme approved under Professional Standards Legislation

RC:DR:CI RESOURCES:033

Conclusion

Based on our review, which is not an audit, we have not become aware of any matter that makes us believe that the half-year financial report of CI Resources Limited is not in accordance with the Corporations Act 2001 , including:

• a) giving a true and fair view of the consolidated entity’s financial position as at 31 December 2012 and of its performance for the half-year ended on that date; and

• b) complying with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001 .

==> picture [61 x 43] intentionally omitted <==

Ernst & Young

==> picture [48 x 52] intentionally omitted <==

R J Curtin Partner Perth 28 February 2013

RC:DR:CI RESOURCES:033