PRL GLOBAL LTD — Interim / Quarterly Report 2015

Feb 25, 2015

APPENDIX 4D – HALF YEAR REPORT

PERIOD ENDED 31 DECEMBER 2014

CI RESOURCES LIMITED AND ITS CONTROLLED ENTITIES ACN 006 788 754

Reporting Period

This information should be read in conjunction with the 30 June 2014 annual financial report.

Current reporting period: 31 December 2014

Previous corresponding period: 31 December 2013

Results for announcement to the market

	31 Dec 2014$'000's	31 Dec 2013$'000's	% Change
Revenue from continuing operations	88,158	79,553	10.8%
Net profit for theperiod	17,159	11,885	44.3%
Profit from ordinary activitiesafter tax attributable to members	10,647	7,377	44.3%
Total comprehensive income for theperiod attributable to members	12,559	7,318	71.6%

Earnings Per Share

	31 Dec 2014	31 Dec 2013
Basic and Diluted	14.85cents	10.12cents

Dividends

No dividend was declared or paid during the half year ended 31 December 2014.

APPENDIX 4D – HALF YEAR REPORT (Continued)

PERIOD ENDED 31 DECEMBER 2014

CI RESOURCES LIMITED AND ITS CONTROLLED ENTITIES ACN 006 788 754

Entities Acquired and Disposed During the Period

The company did not gain or lose control over any entities during the period. At balance sheet date CI Resources effectively held 100% of the shares in Phosphate Resources Limited (PRL) following the successful takeover by CI Resources of all the fully paid ordinary shares in the capital of Phosphate Resources Limited (including all rights attaching to them) that it did not already hold. This was achieved by way of an off market takeover under which Phosphate Resources minority shareholders received 40.3 CI Resources Shares for every 1 Phosphate Resources Limited share they held.

Net Tangible Asset Backing Per Security

	31 Dec 2014	31 Dec 2013
Fully paid ordinary shares on issueatbalance date	115,581,107	72,874,102
Net tangible asset backing per issuedordinary share as at balance date	121.23cents	99.65cents

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: 25 February 2015

CI Resources Limited

ACN 006 788 754

Half Year Report For the half-year ended 31 December 2014

CI Resources Limited ACN 006 788 754

Contents Page

Directors' report	3
Auditor's independence declaration	5
Financial report	6
Directors' declaration	19
Independent reviewreport to the members	20

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 2014.

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 Mr Adrian Gurgone Mr Kelvin Tan Keh Feng (resigned 3 October 2014) Dato' Kamaruddin bin Mohammed

Dividends

No dividends have been declared or paid during the half year ended 31 December 2014.

Review of operations

At balance sheet date CI Resources Limited effectively held 100% of the issued shares in Phosphate Resources Limited ("PRL") following the successful takeover of all outstanding fully paid ordinary shares in PRL (including all rights attaching to them) that CI Resources did not already hold. This was achieved by way of an off market takeover under which PRL minority shareholders received 40.3 CII Shares for every 1 PRL share they held.

This resulted in CII having 115,581,107 fully paid ordinary shares on issue at balance date (31 December 2014: 72,874,102)

During the half year ended 31 December 2014 PRL reported a post-tax profit of $17.674M (31 December 2013: $12.202M).

The Consolidated Entity is reporting a net profit for the period of $17.159M for the half-year ended 31 December 2014 (31 December 2013: $11.885M).

Financial Position

At the end of the financial period the consolidated entity had net cash balances of $50.038M (30 June 2013: $45.783M) and net assets of $147.272M (30 June 2014: $127.032M).

Total liabilities amounted to $55.730M (30 June 2014: $53.836M), being trade and other creditors, provisions, borrowings and taxation liabilities.

Earnings per share	December2014Cents	December2013Cents
Basic earnings per share	14.85	10.12

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.

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.

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

25 February 2015

AUDITORS INDEPENDENCE DECLARATION

Consolidated Statement of Comprehensive Income For the half-year ended 31 December 2014

			Consolidated
	Notes	31 December2014$'000s	31 December2013$'000s
Revenue from continuing operations	3a	88,158	79,553
Cost of sales	3b	(60,036)	(55,993)
Gross Profit		28,122	23,560
Other income	3c	4,760	1,046
Finance Costs		(402)	(495)
Other expenses	3d	(7,905)	(7,067)
Profit before income tax		24,575	17,044
Income tax expense		(7,416)	(5,159)
Net profit for the period		17,159	11,885
Other comprehensive income
Items that may be reclassified subsequently toprofit or loss:
Exchange differences on translation of foreignoperations		3,081	(93)
Total comprehensive income for the period		20,240	11,792
Net profit for the period is attributable to:
Non-controlling interest		6,512	4,508
Owners of the parent		10,64717,159	7,37711,885
Total comprehensive income for the period isattributable to:
Non-controlling interest		7,681	4,474
Owners of the parent		12,55920,240	7,31811,792
Basic and diluted earnings/(loss) per share		Cents14.85	Cents10.12

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

Consolidated Statement of Financial Position As at 31 December 2014

		Consolidated
	Notes	31 December	30 June
		2014	2014
		$'000s	$'000s
Current assets
Cash and cash equivalents	4	50,038	45,783
Term deposits		7,483	7,421
Trade and other receivables		29,254	18,249
Inventories		14,787	14,492
Prepayments		1,723	2,040
Income tax receivable		573	1,209
Total current assets		103,858	89,194
Non-current assets
Term deposits		9,918	9,173
Property, plant & equipment		63,390	57,578
Goodwill		7,158	7,158
Biological assets	7	11,163	10,581
Deferred tax assets		7,515	7,184
Total non-current assets		99,144	91,674
Total assets		203,002	180,868
Current liabilities
Trade and other payables		9,457	12,770
Borrowings		6,115	5,779
Income tax payable		4,005	-
Provisions		6,220	5,729
Total current liabilities		25,797	24,278
Non-current liabilities
Borrowings		5	36
Deferred tax liabilities		10,770	10,530
Provisions		19,158	18,992
Total non-current liabilities		29,933	29,558
Total liabilities		55,730	53,836
Net assets		147,272	127,032
Equity
Contributed equity		72,727	17,970
Reserves		12,003	10,092
Accumulated profits		62,541	51,894
Parent Interests		147,272	79,956
Non-controlling interests		-	47,076
Total equity		147,272	127,032

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

Consolidated Statements of Changes in Equity For the half-year ended 31 December 2014

2014Consolidated	ContributedEquity$'000s	ForeigncurrencytranslationReserve$'000s	Discount onacquisition ofNoncontrollinginterestReserve$'000s	Retainedearnings$'000s	Owners ofthe Parent$'000s	Non-controllingInterest$'000s	Total$'000s
1 July 2014	17,970	1,593	8,499	51,894	79,956	47,076	127,032
Profit for the period	-	-	-	10,647	10,647	6,512	17,159
Other comprehensive income	-	1,912	-	-	1,912	1,169	3,081
Total comprehensive incomefor the period	-	1,912	-	10,647	12,559	7,681	20,240
Transactions with owners intheir capacity as owners
Dividends paid	-	-	-	-	-	-	-
Acquisition of non-controllinginterest in PRL	54,757	-	-	-	54,757	(54,757)	-
31 December 2014	72,727	3,504	8,499	62,541	147,272	-	147,272

Consolidated Statements of Changes in Equity For the half-year ended 31 December 2014

2013Consolidated	ContributedEquity$'000s	ForeigncurrencytranslationReserve$'000s	Discount onacquisition ofNoncontrollinginterestReserve$'000s	Retainedearnings$'000s	Owners ofthe Parent$'000s	Non-controllingInterest$'000s	Total$'000s
1 July 2013	17,970	2,713	8,499	41,386	70,568	41,233	111,801
Profit for the periodOther comprehensive income	--	-(59)	--	7,377-	7,377(59)	4,508(34)	11,885(93)
Total comprehensive incomefor the period	-	(59)	-	7,377	7,318	4,474	11,792
Transactions with owners intheir capacity as ownersDividends paidAcquisition of Non-controllinginterest in PRL	--	--	--	(729)-	(729)-	(530)-	(1,259)-
31 December 2013	17,970	2,654	8,499	48,034	77,157	45,177	122,334

Consolidated Statement of Cash Flows For the half-year ended 31 December 2014

		Consolidated
Notes
	31 December	31 December
	2014	2013
	$'000s	$'000s
Cash flows from operating activities
Receipts from customers	76,799	74,578
Payments to suppliers and employees	(65,230)	(67,132)
(inclusive of goods and services tax)
Interest received	354	393
Interest paid	(102)	(194)
Income taxes paid	(4,355)	(3,222)
Net cash inflow from operating
activities	7,466	4,423
Cash flows from investing activities
(Increase)/decrease in short term
investments	807	(1,468)
Proceeds from sale of property, plant and
equipment	14	30
Purchase of property and equipment	(7,741)	(3,966)
Net cash (outflow)/ inflow from
investing activities	(6,920)	(5,404)
Cash flows from financing activities
Increase/(decrease) in interest bearing
loans and borrowings	305	(799)
Dividends paid	-	(1,258)
Net cash inflow / (outflow) from
financing activities	305	(2,057)
Net increase in cash and cash equivalents	851	(3,038)
held
Cash and cash equivalents at the beginning	45,783	40,582
of the financial year
Impact of foreign exchange	3,404	601
Cash and cash equivalents at the end of
the period3	50,038	38,145

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

Notes to the financial statements For the half-year ended 31 December 2014

1 Corporate Information

The interim condensed consolidated financial statements of CI Resources Limited and its subsidiaries ('Group') for the six months ended 31 December 2014 were authorised for issue in accordance with a resolution of the directors on 25 February 2015.

CI Resources Limited is a for profit company limited by shares incorporate in Australia whose shares are publicly traded on the Australian Securities Exchange.

2 Basis of Preparation and Accounting Policies

Basis of preparation

This interim condensed consolidated financial statements for the half-year ended 31 December 2014 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 2014.

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

The accounting policies adopted in the preparation of the half-year report are consistent with those followed in the preparation of the Group's annual consolidated financial statements for the year ended 30 June 2014, except for the adoption of new standards and interpretation noted below:

AASB 2014-1 Part A Amendments to Australian Accounting Standards – Annual Improvement 2010-2012 and 2011- 2014 Cycle

The adoption of the above amendments has had and no material impact on the financial position or performance of the Group.

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

Notes to the financial statements For the half-year ended 31 December 2014

	Consolidated
		31 December2014$'000s	31 December2013$'000s
3	Revenue and Expenses
(a)	Revenue
	Phosphate sales	59,589	46,437
	Palm oil sales	21,457	26,961
	Oil sales	424	370
	Stevedoring	731	815
	Finance revenue – interest	354	393
	Rendering of services	5,603	4,577
		88,158	79,553
(b)	Cost of sales
	Cost of production:
	Production costs	44,394	41,502
	Royalties	1,007	942
	Environment levy	906	848
	Insurance	1,060	1,049
		47,367	44,341
	Shipping costs:
	Shipping charges	9,099	8,416
	Port charges	1,012	1,090
		10,111	9,506
	Handling and warehousing costs:	370	-
	Depreciation:
	Plant and equipment	2,188	2,146
	Total cost of sales	60,036	55,993
(c)	Other income
	Bad debt expense recovered	-	228
	Foreign exchange gain	4,754	799
Other		6	19
		4,760	1,046

Notes to the financial statements For the half-year ended 31 December 2014

		Consolidated
	31 December2014$'000s	31 December2013$'000s
3Revenue and Expenses (continued)
(d)Other expensesRedundancy expenseDepreciationAdministration and other	76117,818	238286,801
	7,905	7,067

4 Reconciliation of Cash and Cash Equivalents

	31 December	30 June
	2014	2014
	$'000s	$'000s
Cash at bank	50,038	45,783

5 Dividends Paid and Proposed

Franked dividends declared and paid during the half-year on ordinary shares to the
owners of the parent: $0.00 (2013: $0.01)	-	(729)
Dividends proposed and not yet recognised as a liability	-	-
	-	(729)

6 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.

Notes to the financial statements For the half-year ended 31 December 2014

	Consolidated
	31 December2014	30 June2014
7Biological Assets	$'000s	$'000s
Carrying amount on acquisition of subsidiaryHarvest/Amortisation	10,581-	11,231-
Effect of foreign exchangeFair value adjustment	582-	(314)(336)
Carrying amount at end	11,163	10,581

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 2014.

At 31 December 2014, there has been no material change in the fair value of biological assets compared to 30 June 2014.

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.

8 Events after the Balance Sheet Date

No matter or circumstance has arisen since 31 December 2014 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.

9 Financial Instruments

The Directors have concluded that the fair value of those assets and liabilities are not materially different to book values. The methods and assumptions used to estimate the fair value of financial instruments were:

• Cash The carrying amount is fair value due to the liquid nature of these assets.
• Term Deposits The carrying value is the fair value of these assets.
• Receivables/payables due to the short term nature of these financial rights and obligations, and/or market interest received/paid, their carrying values are estimated to represent their fair values.
• Derivatives The fair values of forward currency contracts are calculated by reference to current forward exchange rates for contracts with similar maturity profiles.
• Finance lease liability The fair value is the present value of minimum lease payments, which is also the approximate carrying value.
• Bank loan All the bank loans of the Group are interest bearing with floating interest rates which move in accordance with the market interest rates. Therefore the fair value of the bank loans approximates their carrying value.

Notes to the financial statements For the half-year ended 31 December 2014

9 Financial Instruments (continued)

Forward currency contracts – held for trading

The Group has entered into forward exchange contracts which are economic hedges but do not satisfy the requirements for hedge accounting.

	Notional amounts$AUD		Average exchange rate
	31 Dec2014$'000s	30 June2014$'000s	31 Dec2014	30 June 2014
Sell US$/buy Australian $
Consolidated
Sell US$ maturity 0 to 12 months	32,109	-	0.8409	-
Sell US$ maturity 12 to 24 months	-	-	-	-

These contracts are fair valued by comparing the contracted rate to the market rates for contracts with the same length of maturity. All movements in fair value are recognised in profit or loss in the period they occur. The net fair value losses on foreign currency derivatives during the half-year were $1.045 million for the Group.

The group uses various methods in estimating the fair value of a financial instrument. The methods comprise:

Level 1: the fair value is calculated using quoted price in active markets;

Level 2: the fair value is estimated using inputs other than quoted prices included in Level 1 that are observable for the assets or liability, either directly (as price) or indirectly (derived from prices); and

Level 3: the fair value is estimated using inputs for the assets or liability that are not based on observable market data.

	Level 1'000	Level 2'000	Level 3'000	Total'000
Forward currency contracts – held for trading	-	(1,045)	-	(1,045)
	-	(1,045)	-	(1,045)

Transfer between categories:

There were no transfers between level 1 and level 2 during the half-year.

Notes to the financial statements For the half-year ended 31 December 2014

10 Segment Reporting

Segment Reporting for the half-year ended 31 December 2014

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 2014 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.

	Half-Year ended 31 December 2014
	Mining	Farming	Unallocated	Total
	$'000s	$'000s	$'000s	$'000s
Revenue
Revenue from external customers	59,589	21,457	-	81,046
Interest income	238	26	90	354
Stevedoring	-	-	731	731
Rendering of services	-	-	5,603	5,603
Oil sales	-	-	424	424
Total segment revenue	59,827	21,483	6,848	88,158
Result
Segment net operating profit after tax (attributable
to parent)	16,045	1,033	81	17,159
Depreciation and amortisation	1,335	679	185	2,199
Income tax expense	6,530	345	541	7,416
		As at 31 December 2014
Assets and Liabilities
Segment assets	117,515	63,539	21,948	203,002
Segment liabilities	41,393	13,686	651	55,730

Notes to the financial statements For the half-year ended 31 December 2014

10 Segment reporting (continued)

Segment Reporting for the half-year ended 31 December 2013

	Half-Year ended 31 December 2013
	Mining	Farming	Unallocated	Total
	$'000s	$'000s	$'000s	$'000s
Revenue
Revenue from external customers	46,437	26,961	-	73,398
Interest income	292	-	101	393
Stevedoring	-	-	815	815
Rendering of services	-	-	4,577	4,577
Oil sales	-	-	370	370
Total segment revenue	46,729	26,961	5,863	79,553
Result
Segment net operating profit after tax (attributable
to parent)	10,181	1,545	159	11,885
Depreciation and amortisation	1,413	645	88	2,146
Income tax expense	4,291	515	505	5,311
	As at 30 June 2014
Assets and Liabilities
Segment assets	97,052	62,090	21,726	180,868
Segment liabilities	37,134	14,086	2,616	53,836

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:

	1 July 2014 to	1 July 2013 to
	31 December	31 December
	2014	2013
	$'000s	$'000s
Australasia	9,690	6,439
Malaysia	59,067	59,959
Indonesia	19,047	12,762
	87,804	79,160

Major customers

The Group has number of customers to which it provides the products. There are 2 customers of the Group who each account for more than 10% of total external revenue in 2014 and 2013.

Notes to the financial statements For the half-year ended 31 December 2014

10 Segment reporting (continued)

Non-Current Assets by geographical regions: Consolidated

	31 December2014$'000s	30 June2014$'000s
Australia	42,388	40,469
Malaysia	49,241	44,021
	91,629	84,490

Directors' declaration For the half-year ended 31 December 2014

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 2014 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.

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

D Somerville Chairman

Perth 25 February 2015

Independent review report to the members For the half-year ended 31 December 2014

Independent review report to the members For the half-year ended 31 December 2014