PRL GLOBAL LTD — Interim / Quarterly Report 2017

Feb 26, 2017

APPENDIX 4D – HALF YEAR REPORT

PERIOD ENDED 31 DECEMBER 2016

CI RESOURCES LIMITED AND ITS CONTROLLED ENTITIES ACN 006 788 754

Reporting Period

This information should be read in conjunction with the 30 June 2016 annual financial report.

Current reporting period: Previous corresponding period:

31 December 2016 31 December 2015

Results for announcement to the market

	31 Dec 2016 $’000’s	31 Dec 2015 (restated) **$’000’s **	% Change
Revenue from continuing operations	77,889	106,378	(26.8%)
Net profit for the period	10,022	21,825	(54.1%)
Profit from ordinary activities after tax attributable to members	10,022	21,825	(54.1%)
Total comprehensive income for the period attributable to members	4,750	17,232	(72.4%)

Earnings Per Share

	31 Dec 2016	31 Dec 2015 (restated)
Basic and Diluted	8.67cents	18.88 cents

Dividends

Dividends totalling 8 cents per share have been paid during the half year ended 31 December 2016. The Directors recommend the payment of an interim dividend of 3 cents per share.

Date the interim dividend is payable 18 April 2017 Record date to determine entitlements to the dividend 21 March 2017 Date interim dividend was declared 24 February 2017

APPENDIX 4D – HALF YEAR REPORT (Continued)

PERIOD ENDED 31 DECEMBER 2016

CI RESOURCES LIMITED AND ITS CONTROLLED ENTITIES ACN 006 788 754

Net Tangible Asset Backing Per Security

	31 Dec 2016	31 Dec 2015 (restated)
Fully paid ordinary shares on issue at balance date	115,581,107	115,581,107
Net tangible asset backing per issued ordinary share as at balance date	129.6cents	136.5 cents

Additional Appendix 4D disclosure requirements can be found in the directors’ report and the 31 December 2016 half year report and accompanying notes.

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: 24 February 2017

CI Resources Limited

ACN 006 788 754

Half Year Report For the half-year ended 31 December 2016

Half-year Financial Statements – 31 December 2016

CI Resources Limited ACN 006 788 754

Contents	Page
Directors' report	3
Auditor’s independence declaration	5
Half-year financial statements	6
Directors' declaration	21
Independent review report to the members	22

2

Half-year Financial Statements – 31 December 2016

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 2016.

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 Lai Ah Hong Mr Tee Lip Sin Mr Tee Lip Jen Mr Adrian Gurgone Dato’ Sri Kamaruddin bin Mohammed Mr Clive Brown

Dividends

Dividends totaling 8 cents per share have been paid during the half year ended 31 December 2016. The Directors propose paying a fully franked interim dividend of 3 cents per share issued with the record date being set at 21 March 2017 with payment to be made on the 18 April 2017.

Review of operations

The Consolidated Entity is reporting a net profit for the period of $10.022M for the half-year ended 31 December 2016 (31 December 2015: $21.825M).

Sales volumes from the Christmas Island operations were weaker than the same period in the prior year due to abnormally high rainfall in the first half of the financial year. This resulted in sales of approximately 320,000 tonnes for the half year including sales generated by our Malaysian and Singapore subsidiaries from external trading activities, compared with 440,000 tonnes for the same period last year.

There was an increase in sales revenue from the Commonwealth government contract for the exclusive supply of Diesel fuel to the Christmas Island Power Station and for the provision of diesel fuel for other Commonwealth entities operating out of Christmas Island. This contract commenced in the prior year.

Financial Position

At the end of the financial period the consolidated entity had net cash balances of $42.199M (30 June 2016: $57.696M) and net assets of $172.157M (30 June 2016: $176.653M).

Total liabilities amounted to $45.640M (30 June 2016: $52.891M), being trade and other creditors, provisions and taxation liabilities.

3

Half-year Financial Statements – 31 December 2016

CI RESOURCES LIMITED

Directors’ report

Earnings per share Basic earnings per share	December 2016 Cents December 2015 (restated) Cents
	8.67 18.88

Auditor’s Independence Declaration

A copy of the auditor’s 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 Corporation (Rounding in Financial/Directors’ Reports) Instrument 2016/191 . 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

24 February 2017

4

Half-year Financial Statements – 31 December 2016

Ernst & Young 11 Mounts Bay Road Perth WA 6000 Australia GPO Box M939 Perth WA 6843

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Tel: +61 8 9429 2222 Fax: +61 8 9429 2436 ey.com/au

Auditor’s independence declaration to the Directors of CI Resources Limited

As lead auditor for the review of CI Resources Limited for the half-year ended 31 December 2016, I declare to the best of my knowledge and belief, there have been:

• a. no contraventions of the auditor independence requirements of the Corporations Act 2001 in relation to the review ; and

• b. no contraventions of any applicable code of professional conduct in relation to the review.

This declaration is in respect of CI Resources Limited and the entities it controlled during the financial period.

Ernst & Young

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D A Hall Partner Perth 24 February 2017

DH:VH:CIRESOURCES:004

A member firm of Ernst & Young Global Limited Liability limited by a scheme approved under Professional Standards Legislation

CI RESOURCES LIMITED

Consolidated Statement of Comprehensive Income For the half-year ended 31 December 2016

Notes	Consolidated 31 December 2016 $’000s 31 December 2015 (restated) $’000s
Revenue from continuing operations 3a Cost of sales 3b Gross Profit Other income 3c Finance costs Other expenses 3d Share of loss of a joint venture 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 Basic and diluted earnings/(loss) per share	77,889 106,378 (57,613) (66,859)
	20,276 39,519 1,536 1,621 (301) (299) (7,706) (8,771) (38) -
	13,767 32,070 (3,745) (10,245)
	10,022 21,825
	(5,272) (4,593)
	4,750 17,232
	Cents 8.67 Cents 18.88

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

6

Half-year Financial Statements – 31 December 2016

CI RESOURCES LIMITED

Consolidated Statement of Financial Position As at 31 December 2016

Notes	Consolidated 31 December 2016 $’000s 30 June 2016 (restated) $’000s	Consolidated 31 December 2016 $’000s 30 June 2016 (restated) $’000s
Current assets Cash and cash equivalents 4 Term deposits Trade and other receivables Inventories Biological asset 7(a) Prepayments Income tax receivable Total current assets Non-current assets Other financial assets Property, plant & equipment Goodwill Biological assets 7(b) Investment in a joint venture Deferred tax assets Total non-current assets Total assets Current liabilities Trade and other payables Financial liabilities 9 Borrowings Income tax payable Provisions Total current liabilities Non-current liabilities Deferred tax liabilities Provisions Total non-current liabilities Total liabilities Net assets Equity Contributed equity Reserves Accumulated profits Total equity	42,199 12,593 41,108 11,518 380 3,739 654	57,696 11,553 39,303 12,495 700 161 468
	112,191	122,376
	9,885 72,099 7,158 6,362 161 9,941	10,376 72,790 7,158 7,182 - 9,662
	105,606	107,168
	217,797	229,544
	8,468 675 - 1,040 6,058	9,349 - 160 5,453 8,061
	16,241	23,023
	9,469 19,930	9,675 20,193
	29,399	29,868
	45,640	52,891
	**172,157 **	176,653
	72,160 3,944 96,053	72,160 9,216 95,277
	**172,157 **	176,653

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

7

Half-year Financial Statements – 31 December 2016

CI RESOURCES LIMITED

Consolidated Statements of Changes in Equity For the half-year ended 31 December 2016

2016 Consolidated	Contributed Equity $’000s Foreign currency translation Reserve $’000s Discount on acquisition of Non- controlling interest Reserve $’000s Retained earnings $’000s Total $’000s
1 July 2016 (restated) Profit for the period Other comprehensive income Total comprehensive income for the period Transactions with owners in their capacity as owners Dividends paid 31 December 2016	72,160 717 8,499 95,277 176,653
	- - - 10,022 10,022 - (5,272) - - (5,272)
	- (5,272) - 10,022 4,750
	- - - (9,246) (9,246)
	72,160 (4,555) 8,499 96,053 **172,157 **

8

Half-year Financial Statements – 31 December 2016

CI RESOURCES LIMITED

Consolidated Statements of Changes in Equity For the half-year ended 31 December 2016

2015 Consolidated	Contributed Equity $’000s Foreign currency translation Reserve $’000s Discount on acquisition of Non- controlling interest Reserve $’000s Retained earnings $’000s Total $’000s
1 July 2015 (restated) Profit for the period – as previously reported Impact of change in accounting policy Profit for the period – restated Other comprehensive income – as previously reported Impact of change in accounting policy Other comprehensive income – restated Total comprehensive income for the period (restated) Transactions with owners in their capacity as owners Dividends paid 31 December 2015 (restated)	72,160 2,902 8,499 71,323 154,884
	- - - 22,449 22,449 - - - (624) (624)
	- - - 21,825 21,825
	- (4,541) - - (4,541) - (52) - - (52)
	- (4,593) - - (4,593)
	- (4,593) - 21,825 17,232
	- - - (5,779) (5,779)
	72,160 (1,691) 8,499 87,369 166,337

9

Half-year Financial Statements – 31 December 2016

CI RESOURCES LIMITED

Consolidated Statement of Cash Flows For the half-year ended 31 December 2016

Notes	Consolidated 31 December 2016 $’000s 31 December 2015 $’000s
Cash flows from operating activities Receipts from customers Payments to suppliers and employees Interest received Income taxes paid Net cash inflow from operating activities Cash flows from investing activities Increase in term deposits Proceeds from sale of property, plant and equipment Purchase of property and equipment Investment in joint venture Net cash (outflow) from investing activities Cash flows from financing activities (Repayments) / proceeds from interest bearing loans and borrowings Dividends paid Net cash (outflow) from financing activities Net (decrease) in cash and cash equivalents 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 4	75,676 98,944 (67,441) (83,047) 408 487 (8,379) (6,367)
	264 10,017
	(549) (1,550) 293 19 (6,254) (6,166) (200) -
	(6,710) (7,698)
	(160) 366 (9,246) (5,779)
	(9,406) (5,413)
	(15,852) (3,094) 57,696 53,967 355 1,072
	42,199 51,945

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

10

Half-year Financial Statements – 31 December 2016

CI RESOURCES LIMITED

Notes to the financial statements For the half-year ended 31 December 2016

1 Corporate Information

The half-year financial statements of CI Resources Limited and its subsidiaries (‘Group’) for the six months ended 31 December 2016 were authorised for issue in accordance with a resolution of the directors on 24 February 2017.

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

2 Basis of Preparation and Accounting Policies

Basis of preparation

This half-year financial statements for the half-year ended 31 December 2016 are general purpose condensed financial statements prepared in accordance with AASB 134 Interim Financial Reporting and the Corporations Act 2001.

The half-year financial statements 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 statements should be read in conjunction with the Annual Financial Report of CI Resources Limited as at 30 June 2016.

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 2016, except for the adoption of new and amended Accounting Standards and Interpretations effective 1 July 2016, including:

• AASB 2014-3 : Amendments to Australian Accounting Standards –Accounting for Acquisition of Interest in Joint Operations (AASB 1 & AASB 11)

• AASB 2014-4 : Clarification of Acceptable Methods of Depreciation and Amortisation (Amendments to AASB 116 and AASB 138)

• AASB 2014-6 : Amendments to Australian Accounting Standards – Agriculture: Bearer plants (AASB 101, AASB 116, AASB 117, AASB 123, AASB 136, AASB 140 & AASB 141)

• AASB 2015-1 Amendments to Australian Accounting Standards –Annual Improvements to Australian Accounting Standards 2012-2014 cycle

• AASB 2015-2 : Amendment to Australian Accounting Standards – Disclosure Initiative: Amendments to AASB 101

Other than AASB 2014-6 , the adoption of the above new and amended Accounting Standards and Interpretations did not have a material impact on the consolidated financial position or performance of the Group.

Impact of AASB 2014-6 Amendments to Australian Accounting Standards – Agriculture: Bearer Plants

Effective from 1 July 2016 the Group has adopted AASB 2014-6 Amendments to Australian Accounting Standards – Agriculture: Bearer Plants, and the consequential amendments to AASB 116 Property, Plant and Equipment and AASB 141 Agriculture. These amendments distinguish bearer plants (i.e. palm oil trees), from other biological assets (i.e. fresh fruit bunches). The amended standards consider bearer plants, which are solely used to grow produce over their productive lives, to be similar to plant and equipment. Bearer plants are now accounted for under AASB 116. Previously, bearer plants and its agricultural produce were considered to be one asset prior to harvest and were carried at fair value less cost to sell both on initial recognition and subsequently. Agricultural produce growing on bearer plants remains within the scope of AASB 141 and continues to be measured at fair value less costs to sell.

Upon adoption of the amended standards, and in accordance with the transition provisions, the Group has elected to measure bearer plants at their fair value at 1 July 2015 and deem this to be cost at that date.

11

Half-year Financial Statements – 31 December 2016

CI RESOURCES LIMITED

Notes to the financial statements For the half-year ended 31 December 2016

New accounting policy – Property, Plant & Equipment (Bearer Plants)

Bearer plants are measured at cost, less any subsequent accumulated depreciation and impairment.

Prior to maturity, the costs of bearer plants includes the cost of direct materials, direct labour and other costs directly attributable to the bearer plants reaching maturity. Post maturity, maintenance costs on bearer plants are expensed as incurred.

Mature bearer plants are subject to depreciation on a straight line basis over their estimated useful lives. The useful life of a bearer plant is estimated at 25 years.

The carrying amount of bearer plants is reviewed annually by the Directors to ensure it is not in excess of the recoverable amount from these assets

Comparative financial information

Comparative financial information has been restated to reflect the adoption of AASB 2014-6 Amendments to Australian Accounting Standards – Agriculture: Bearer Plants in accordance with the relevant transitional requirements and AASB 108 Accounting Policies, Changes in Accounting Estimates and Errors.

The changes reflect:

• Accounting for the Bearer Plants in accordance with AASB 116 Property, Plant and Equipment rather than AASB 141 Agriculture – refer to new accounting policy above;

• Depreciation expense in connection with Bearer Plants – refer to new accounting policy above; and

• The consequential tax impact of the above changes.

The following tables summarises the impact of the adjustments on the comparative financial information:

Consolidated Statement of Comprehensive Income for the half-year ended 31 December 2015 (extract):

	31 December	Increase/	31 December
	2015	(decrease)	2015
	'000	'000	'000
			(Restated)
Cost of sales	(65,329)	(1,530)	(66,859)
Other income	924	697	1,621
Profit before income tax	32,903	(833)	32,070
Income tax expense	(10,454)	209	(10,245)
Net profit for the period	22,449	(624)	21,825
Other comprehensive income
Items that may be reclassified subsequently to profit or loss:
Exchange differences on translation of foreign operations	(4,541)	(52)	(4,593)
Total comprehensive income for the period	17,908	(676)	17,232
Basic and diluted earnings/(loss) per share	19.42	(0.54)	18.88

12

Half-year Financial Statements – 31 December 2016

CI RESOURCES LIMITED

Notes to the financial statements For the half-year ended 31 December 2016

Consolidated Statement of Financial Position as at 30 June 2016 (extract):

	30 June	Increase/	30 June
	2016	(decrease)	2016
	'000	'000	'000
			(Restated)
Current assets
Biological assets	-	700	700
Non-current assets
Bearer plants	-	7,182	7,182
Biological assets	8,025	(8,025)	-
Non-current liabilities
Deferred tax liabilities	9,689	(14)	9,675
Equity
Reserves	9,304	(88)	9,216
Accumulated profits	95,318	(41)	95,277

It is impractical for the Group to disclose the impact of the pre-amended standard on the current half-year financial position and financial performance of the Group.

Issued but not yet effective accounting standards

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

13

Half-year Financial Statements – 31 December 2016

CI RESOURCES LIMITED

Notes to the financial statements For the half-year ended 31 December 2016

Notes to the financial statements For the half-year ended 31 December 2016
3 Revenue and Expenses (a) Revenue Phosphate sales Palm oil sales Finance revenue – interest Rendering of services Other sales (b) Cost of sales Cost of production: Production and purchase costs Royalties Environment levy Insurance Shipping costs: Shipping charges Port charges Handling and warehousing costs Depreciation: Plant and equipment Total cost of sales (c) Other income Foreign exchange gain Change in fair value of biological asset Other	Consolidated 31 December 2016 $’000s 31 December 2015 $’000s 49,856 73,227 14,500 21,210 408 487 4,299 4,157 8,826 7,297
	77,889 106,378
	43,871 48,539 812 1,273 732 1,145 928 826
	46,343 51,783
	7,158 10,979 1,085 1,440
	8,243 12,419
	372 57 2,655 2,600
	57,613 66,859
	1,100 887 428 697 8 37
	1,536 1,621

14

Half-year Financial Statements – 31 December 2016

CI RESOURCES LIMITED

Notes to the financial statements For the half-year ended 31 December 2016

3 Revenue and Expenses (continued) (d) Other expenses Redundancy expense Depreciation Administration and other 4 Reconciliation of Cash and Cash Equivalents Cash at bank 5 Dividends Paid and Proposed Franked dividends declared and paid during the half-year on ordinary shares to the owners of the parent: $0.08 (June 2016: $0.09) Dividends proposed and not yet recognised as a liability	Consolidated 31 December 2016 $’000s 31 December 2015 $’000s 499 332 46 28 7,161 8,411
	7,706 8,771
	31 December 30 June 2016 2016 $’000s $’000s 42,199 57,696
	(9,246) (10,401) (3,467) -
	(12,713) (10,401)

6 Commitments and Contingencies

As at the reporting 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.

15

Half-year Financial Statements – 31 December 2016

CI RESOURCES LIMITED

Notes to the financial statements For the half-year ended 31 December 2016

7 Biological Assets (a) Biological assets Carrying amount at beginning of period Cost during the period Harvested during the period Fair value adjustment Effect of foreign exchange Carrying amount at end of period	Consolidated 31 December 2016 $’000s 30 June 2016 $’000s 700 1,256 735 2,040 (1,435) (3,296) 428 752 (48) (52)
	380 700

Biological assets consist of agricultural produce growing on bearer plants at the balance sheet date.

(b) Bearer plants (property, plant & equipment) Carrying amount/deemed cost at beginning of period Depreciation Effect of foreign exchange Carrying amount at end of period	7,182 8,040 (262) (548) (558) (310)
	6,362 7,182

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

The Group is exposed to risks in respect of agricultural activity.

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 2016 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 financial assets and financial liabilities are not materially different to book values. The methods and assumptions used to estimate the fair value of financial instruments were:

• Term deposits – due to the short term nature of deposits, the carrying value is approximate to the fair value.

• • 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.

• Financial contracts - These contracts are fair valued by comparing the contracted rate to the forward market rates for contracts with the same remaining term, discounted at a market interest rate.

16

Half-year Financial Statements – 31 December 2016

CI RESOURCES LIMITED

Notes to the financial statements For the half-year ended 31 December 2016

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	Notional amounts	Average exchange rate	Average exchange rate
		$AUD
	31 Dec	30 June	31 Dec	30 June
	2016	2016	2016	2016
	$’000s	$’000s
Sell US$/buy Australian $
Consolidated
Sell US$ maturity 0 to 12 months	21,488	-	0.7446	-

These contracts are fair valued by comparing the contracted rate to the forward market rates for contracts with the same remaining term, discounted at a market interest rate. 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 $0.675 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.

Forward currency contracts – classified as held for trading	Level 1 ‘000 Level 2 ‘000 Level 3 ‘000 Total ‘000 - (675) - -
	- (675) - -

Transfer between categories:

There were no transfers between levels during the half-year.

17

Half-year Financial Statements – 31 December 2016

CI RESOURCES LIMITED

Notes to the financial statements For the half-year ended 31 December 2016

10 Segment Reporting

Segment Reporting for the half-year ended 31 December 2016

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 2016 accounts.

Revenue Revenue from external customers Interest income Rendering of services Fuel 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 2016
	Mining Farming Unallocated/ Elimination Total $’000s $’000s $’000s $’000s
	49,856 14,500 - 64,356 218 75 115 408 - - 4,936 4,936 - - 8,189 8,189
	50,074 14,575 13,240 77,889 8,092 699 1,231 10,022
	1,427 910 364 2,701 3,348 101 296 3,745 As at 31 December 2016 136,628 50,943 30,226 217,797
	38,081 4,424 3,135 45,640

18

Half-year Financial Statements – 31 December 2016

CI RESOURCES LIMITED

Notes to the financial statements For the half-year ended 31 December 2016

10 Segment reporting (continued)

Revenue Revenue from external customers Interest income Rendering of services Other 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 2015*
	Mining Farming Unallocated/ Elimination Total $’000s $’000s $’000s $’000s
	73,227 21,210 - 94,437 266 100 121 487 - - 4,157 4,157 - - 7,297 7,297
	73,493 21,310 11,575 106,378 20,347 432 1,046 21,825
	1,363 938 327 2,628 9,438 143 664 10,245 As at 30 June 2016 144,571 54,823 30,150 229,544
	44,632 5,091 3,168 52,891

*-The segment reporting disclosure for half-year ended 31 December 2015 and as at 30 June 2016 have been updated for the impact of the amendments to AASB 2014-6.

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:

Australasia Malaysia Indonesia	1 July 2016 to 31 December 2016 1 July 2015 to 31 December 2015 $’000s $’000s 14,072 15,689 49,981 73,627 13,428 16,575
	77,481 105,891

Major customers

The Group has a 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 for the half years ended 31 December 2016 and 2015.

19

Half-year Financial Statements – 31 December 2016

CI RESOURCES LIMITED

Notes to the financial statements For the half-year ended 31 December 2016

10 Segment reporting (continued)

Non-Current Assets by geographical regions:

NCt At b hil i
on-urren sses y geograpca regons: Australia Malaysia Singapore	Consolidated 31 December 2016 $’000s 30 June 2016 $’000s 57,643 55,887 46,651 49,991 1,312 1,290
	105,606 107,168

11 Related parties

The Group has a policy that all transactions with related parties are conducted on commercial terms and conditions.

No material related party transactions occurred other than the remuneration of Directors and Key Management Personnel.

12 Changes in composition of the entity

There has been no material change in the composition and nature of the Group during the interim period, including business combinations, obtaining or losing control of subsidiaries and long-term investments, restructurings and discontinued operations.

The Group entered into a joint venture, Goshawk Services Pty Ltd during the period with a 49% interest. For the period ended 31 December 2016, the Group recognised $38,000 share in loss incurred.

20

Half-year Financial Statements – 31 December 2016

CI RESOURCES LIMITED

Directors’ declaration For the half-year ended 31 December 2016

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 2016 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 24 February 2017

21

Half-year Financial Statements – 31 December 2016

Ernst & Young 11 Mounts Bay Road Perth WA 6000 Australia GPO Box M939 Perth WA 6843

Tel: +61 8 9429 2222 Fax: +61 8 9429 2436 ey.com/au

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Report on the half-year or interim financial report to the members of CI Resources Limited

We have reviewed the accompanying half-year financial report of CI Resources Limited which comprises the consolidated statement of financial position as at 31 December 2016, the consolidated statement of comprehensive income, statement of changes in equity and statement of cash flows for the half-year ended on that date, notes comprising a summary of significant accounting policies and other explanatory information, 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 2016 and its performance for the halfyear 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.

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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 2016 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 .

Ernst & Young

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D A Hall Partner Perth 24 February 2017

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A member firm of Ernst & Young Global Limited Liability limited by a scheme approved under Professional Standards Legislation