REDCASTLE RESOURCES LIMITED — Interim / Quarterly Report 2004

Feb 25, 2004

APPENDIX 4D

HALF-YEAR INFORMATION GIVEN TO THE ASX UNDER LISTING RULE 4.2A

Name of Entity

Great Pacific Capital Limited

ABN or equivalent reference $#$
	57 096 781 716

Reporting period Half-year ended 31st December 2003 Previous corresponding period Half-year ended 31st December 2002

The information contained in this appendix should be read in conjunction with the most recent annual financial report.

Contents

	Page No
Results for announcement to the market
Net tangible assets per ordinary share-
Other information regarding this appendix

RESULTS FOR ANNOUNCEMENT TO THE MARKET

Revenue from ordinary activities	up	37.32%	to	$7,791,091
Profit from ordinary activitiesafter income tax attributable tomembers	up	62.67%	to	$2,512,013
Net profit for the yearattributable to members	up	62.67%	to	$2,512,013

Dividends per Share	Amount per share	Franked amount per shareat 30% tax
Final	$0$ cents	$0$ cents
Interim	0 cents	$0$ cents

No dividend was declared in respect of the half year period to 31 December 2003

Review of operations

During the period, the consolidated entity consisting of Great Pacific Capital Limited and its controlled entities continued to be involved in the provision of debt facilities in funding residential property development projects and property related transactions.

The increase in revenue and profit during the current period as compared to the same period ended 31 December 2002 reflects the continuous growth of the consolidated entity.

The compounding effect of interest revenue capitalised on loan facilities provided over a long term will also provide a greater growth rate in revenue towards the later part of the facilities. This pattern of revenue stream is reflected in the facility provided for the project for the redevelopment of the former children hospital site at Camperdown which has a loan term of over two years.

	Current period2003	Previouscorresponding period2002
Net tangible assets per ordinary share(NTA backing)	1.02	0.99

Other information

The information contained in this Appendix 4D is based on the attached financial report for the half year ended 31 December 2003 which is subject to independent review.

GREAT PACIFIC CAPITAL LIMITED ABN 57 096 781 716 AND ITS CONTROLLED ENTITIES FINANCIAL REPORT FOR THE HALF YEAR ENDED 31 DECEMBER 2003

CONTENTS

Directors' Report	Page No.
Statement of Financial Performance	3
Statement of Financial Position	4
Statement of Cash Flows	5
Notes to the Financial Statements	6
Directors' Declaration	8
Independent Review Report	9

Great Pacific Capital Limited is a company limited by shares, incorporated and domiciled in Australia. Its registered office and principal place of business is Level 23, 123 Pitt Street, Sydney, NSW 2000.

DIRECTORS' REPORT

The Directors present their report on the consolidated entity consisting of Great Pacific Capital Limited and the entities it controlled for the half year ended 31 December 2003.

Directors

The following persons held office as Directors during or since the end of the half year ended 31 December 2003:

Alfred Wong, Chairman Danny Au-Yeung Ivan Wong Graham Werry (resigned 16 December 2003)

Results and review of operations

During the period, the consolidated entity continued to be involved in the provision of debt facilities in funding residential property development projects and property related transactions.

During the period, the loan provided by GPC No. 4 (North Sydney) Pty Ltd secured by the mortgage of a commercial building was fully repaid upon the sale of the property by the borrower. Most of the promissory note holders funding this loan facility have been repaid.

All the promissory notes issued by GPC No.2 (Camperdown) Pty Ltd to fund the loan for the redevelopment project at the former Camperdown Children's Hospital have a maturity date of 31 December 2003 which coincides with the maturity date of the loan. Due to the delay in construction and hence settlement, the loan was not fully repaid on 31 December 2003.

Out of the total amount of $14,903,531 promissory notes outstanding as at 31 December 2003, holders of $3,178,000 worth of promissory notes agreed to extend the maturity date to either $28th$ February 2004 or 30th June 2004 and the rest were subsequently paid out in January 2004. The loan is expected to be fully repaid by end of March 2004.

As discussed in the June 2003 annual report the company is looking for projects of longer time frame, which promise far greater potential and profitability to diversify our operation. During the period, the consolidated entities have provided a short term facility to a consortium to acquire the Nardell Coal Mine at the Hunter Valley region. This facility will be repaid by the end of one year when the consortium has completed a major fund raising program.

The net result of the consolidated entity after applicable income tax for the half year ended 31 December 2003 was a profit of $2,512,011 (2002: $1,544,214) reflecting the continuous growth of the consolidated entity.

DIRECTORS' REPORT

Matters subsequent to the end of the reporting period

In January 2004, the consolidated entity has arranged short term finance to repay $11.7 million worth of promissory notes in relation to the redevelopment project at the former Children's Hospital at Camperdown. Other than the matter disclosed above, there are no matters or circumstances that have arisen since 31 December 2003 that have significantly affect, or may significantly affect:

• The consolidated entity's operations in the future financial years, or $a$
• b) The result of those operations in future financial years, or
• c) The consolidated entity's state of affairs in the future financial years.

Signed at Sydney this 25th day of February 2004 in accordance with a resolution of the Directors.

. . . . . . . . . . . . . . . . . . . . Danny Au-Yeung Director

. . . . . . . . . . . . . . . . . . . . Alfred Wong Director

STATEMENT OF FINANCIAL PERFORMANCE FOR THE HALF YEAR ENDED 31 DECEMBER 2003

		Consolidated	Consolidated
		Dec 2003	Dec 2002
	Notes	$	$
Interest income	$\overline{2}$	6,911,169	5,095,883
Interest expense	$\overline{2}$	(2,734,408)	(2, 425, 342)
Net interest income		4,176,761	2,670,541
Fee and commission income	3	801,308	576,423
Fee and commission expense	3	(9,305)	(8,668)
Net fee and commission income		792,003	567,755
Other income		645	1,575
Rental income		77,969
Deferred expense written off		(37,500)	(37,500)
Depreciation and amortisation expense		(207,064)	(210, 120)
Employee expense		(250,702)	(195,006)
Lease and rental expense		(63,740)	(2, 553)
Legal and professional fees		(460, 694)	(201, 412)
Other expenses from ordinary activities		(335,566)	(283,020)
Profit from ordinary activities before income tax		3,692,112	2,310,260
Income tax expense relating to ordinary activities		(1,180,101)	(766,046)
Net profit attributable to members of the parent entity		2,512,011	1,544,214
Total changes in equity other than those resulting fromtransactions with owners as owners		2,512,011	1,544,214
		Cents per share
Basic earnings per share		21.14	21.10
Diluted earnings per share		21.14	21.10

The above statement of financial performance is to be read in conjunction with the notes to the financial statements.

STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2003

		Consolidated	Consolidated
		31 Dec 2003	30 Jun 2003
Assets	Note	$	S
Cash and liquid assets		944,078	5,253,682
Receivables		24,494,367	19,255,928
Loans		19,414,349	21,466,446
Deferred tax assets		5,165,727	1,684,766
Other assets		61,915	90,707
Property, plant and equipment		3,573,622	2,767,595
Intangible assets		166,667	366,666
Total assets		53,820,725	50,885,790
Liabilities
Payables		5,005,570	5,044,020
Current tax liabilities		1,358,032	873,412
Provision - annual leave		26,018	25,983
Borrowings		27,600,278	31,205,727
Deferred tax liabilities		7,532,253	3,355,810
Total liabilities		41,522,151	40,504,952
Net assets		12,298,574	10,380,838
Equity
Share capital		4,735,500	4,735,500
Asset revaluation reserve		657,981	657,981
Retained profits	5	6,905,093	4,987,357
Total equity		12,298,574	10,380,838

The above statement of financial position is to be read in conjunction with the notes to the financial statements.

STATEMENT OF CASH FLOWS FOR THE HALF YEAR ENDED 31 DECEMBER 2003

	Consolidated	Consolidated
	Dec 2003	Dec 2002
	S	$
Cash flows from operating activities
Interest received	998,241	424,494
Interest paid	(1,868,337)	(1,253,046)
Fee received	1,827,500	126,424
Fee paid	(57, 741)	(9, 534)
Operating receipts		103,400
Operating payments	(2,077,873)	(846,049)
Net cash used in operating activities	(1,178,210)	(1,454,311)
Cash flows from investing activities
Proceeds from sale of investment		112,500
Proceeds from repayment of loans	12,728,773	500,000
Loans to developers and borrowers	(10,676,677)	(6,641,662)
Payment for option fees to purchase property	(56, 244)	(125,500)
Payments for property, plant and equipment	(787, 574)	(6,207)
Net cash provided by/(used in) investing activities	1,208,278	(6,160,869)
Cash flows from financing activities
Proceeds from share subscriptions		1,188,500
Payment of dividend	(534, 224)
Proceeds from borrowing	869,864
Proceeds from issue of notes	3,185,000	10,935,000
Redemption of promissory notes	(7,860,312)	(3,665,000)
Net cash (used in)/provided by financing activities	(4,339,672)	8,458,500
Net (decrease) / increase in cash held	(4,309,604)	843,320
Cash at the beginning of the financial period	5,253,682	5,252,749
Cash at the end of the financial period	944,078	6,096,069

The above statement of cash flows is to be read in conjunction with the notes to the financial statements.

NOTES TO THE FINANCIAL STATEMENTS FOR THE HALF YEAR ENDED 31 DECEMBER 2003

1. Summary of significant accounting policies

Basis of preparation of financial report

The half year consolidated financial statements are a general purpose financial report prepared in accordance with the requirements of the Corporations Act 2001, Accounting Standards AASB1029: Interim Financial Reporting, Urgent Issues Group Consensus Views and other authoritative pronouncements of the Australia Accounting Standard Board. This report should be read in conjunction with the annual financial report for the year ended 30 June 2003 and any pronouncements made by Great Pacific Capital Limited and its controlled entities during the half year in accordance with continuous disclosure requirements arising under the Corporations Act 2001 and Australian Stock Exchange Listing Rules.

Accounting policies adopted has been consistently applied and are consistent with those applied in the 30 June 2003 annual report, unless otherwise specified.

This half year report does not include full disclosures of the type normally included in an annual financial report.

	ConsolidatedDec 2003	ConsolidatedDec 2002
2. Interest income and expense	S	S
Interest income
Loans and advancesOther	6,826,38684,783	5,018,02277,861
Total interest income	6,911,169	5,095,883
Interest expenseBorrowingsOther	2,734,308100	2,425,342
Total interest expense	2,734,408	2,425,342
3. Fee and commission income and expense
Fee and commission income
Arranger feeEstablishment fee		68,17525,248
Management feeSuccess fee	27,500525,000	33,000450,000
Guarantor fee	248,808
Total fee and commission income	801,308	576,423
Fee and commission expenseCommission	9,305	8,668
Total fee and commission expense	9,305	8,668

4. Dividends

A final unfranked dividend of 5 cents per share totalling $594,275 (2002: $NIL) for the year ended 30 June 2003 was paid on 10 November 2003.

No dividends were declared in respect of the half year ended 31 December 2003.

NOTES TO THE FINANCIAL STATEMENTS FOR THE HALF YEAR ENDED 31 DECEMBER 2003

	Consolidated31 Dec 2003	Consolidated30 Jun 2003
5. Retained profits	$
Balance at the beginning of the periodChanges in equity recognised in statement of financial performance	4,987,3572,512,011	1,472,7363.514.621
Transaction with owners as owners:- dividends paid or provided for	(594, 275)
Balance at the end of the period	6.905.093	4.987.357

6. Segment information

The consolidated entity operates in one geographical segment, being Australia and in one business segment, being the provision of subordinated debt facilities in funding residential and commercial property development and property related transactions.

7. Events occurring after reporting date

In January 2004, the consolidated entity has arranged short term finance to repay $11.7 million worth of promissory notes in relation to the redevelopment project at the former Children's Hospital at Camperdown. Other than the matters disclosed above, there are no matters or circumstances that have arisen since 31 December 2003 that have significantly affect, or may significantly affect:

• (a) The consolidated entity's operations in the future financial years, or
• (b) The result of those operations in future financial years, or
• (c) The consolidated entity's state of affairs in the future financial years.

8. Contingencies

In the normal course of business operations, Great Pacific Capital Limited and its controlled entities enter into various types of business contracts that may give rise to contingent liabilities. As at 31 December 2003, Great Pacific Capital Limited had received a written notice of demand for damages arising from wrongful termination of an employment contract lodged by a former employee of Bellpac Pty Ltd, the legal owner of the Bellambi West Colliery. Although Great Pacific Capital Limited was not the employer of this employment contract, it has been included as one of the defendants in the claim. At this stage, no claim for a specific amount of damages has been lodged.

DIRECTORS' DECLARATION

The directors of the company declare that:

• The financial statements and notes, set out on pages 3 to 7: $(a)$
  • comply with Accounting Standard AASB 1029: Interim Financial Reporting and the $(i)$ Corporations Regulations; and
  • give a true and fair view of the economic entity's financial position as at 31 December 2003 and $(ii)$ of its performance for the half year ended on that date
• In the directors' opinion there are reasonable grounds to believe that the company will be able to pay its $(b)$ debt as and when they become due and payable.

Signed at Sydney this 25th day of February 2004 in accordance with a resolution of the Directors.

. . . . . . . . . . . . . . . . . . . . Alfred Wong Director

....................................... Danny Au-Yeung Director

GREAT PACIFIC CAPITAL LIMITED ABN 57 096 781 716 AND CONTROLLED ENTITIES INDEPENDENT REVIEW REPORT TO THE MEMBERS OF GREAT PACIFIC CAPITAL LIMITED

Scope

We have reviewed the financial report of Great Pacific Capital Limited for the half-year ended 31 December 2003 comprising the Consolidated Statement of Financial Performance, Consolidated Statement of Financial Position, Consolidated Statement of Cash Flows, Notes to the Financial Statements and the Directors Declaration,

The financial report includes the consolidated financial statements of the consolidated entity comprising the company and the entities it controlled at the end of the half-year or from time to time during the half-year. The company's directors are responsible for the financial report. We have performed an independent review of the financial report in order to state whether, on the basis of the procedures described, anything has come to our attention that would indicate that the financial report is not presented fairly in accordance with Accounting Standard AASB 1029: Interim Financial Reporting and other mandatory professional reporting requirements and statutory requirements, so as to present a view which is consistent with our understanding of the company's financial position, and performance as represented by the results of its operations and its cash flows, and in order for the company to lodge the financial report with the Australian Securities and Investments Commission/Australian Stock Exchange Limited.

Our review has been conducted in accordance with Australian Auditing Standards applicable to review engagements. A review is limited primarily to inquiries of company personnel and analytical procedures applied to the financial data. These procedures do not provide all the evidence that would be required in an audit, thus the level of assurance provided is less than given in an audit. We have not performed an audit and, accordingly, we do not express an audit opinion.

Statement

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 Great Pacific Capital Limited is not in accordance with:

• A. the Corporations Act 2001, including:
  • giving a true and fair view of the company's financial position as at 31 December L. 2003 and of its performance for the half-year ended on that date; and
  • II. complying with Accounting Standard AASB 1029: Interim Financial Reporting and the Corporations Regulations 2001; and
• B. other mandatory professional reporting requirements in Australia.

Hall Chadwick Level 29, St Martins Tower 31 Market Street Sydney, NSW 2000

Drew Townsend Partner

Dated: 25 February 2004

Sydney

Level 29 St. Martins Tower 31 Market Street Sydney, NSW 2000

GPO Box 3555 Sydney, NSW 2001 or

DX 1451 Sydney

Telephone: (02) 9263 2600 Facsimile: (02) 9263 2800 Email: hesydinfo@ hallchadwick.com.au

Penrith

Telephone: (02) 4721 8144 Facsimile: (02) 4721 8155

Partners

Robert Elliott Robert Brassil Geoffrey McDonald Drew Townsend David Kenney Richard Albarran Gino Malacco Paul Leroy

Associate Steven Gladman

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