TIDMCRHL
RNS Number : 4374C
Creat Resources Holdings Ltd
17 March 2014
17 March 2013
Creat Resources Holdings Limited
("CRHL" or "the Company")
Interim Results for the six months ended 31 December 2013
Creat Resources Holdings Limited ("CRHL") (AIM: CRHL) is pleased
to announce its unaudited interim results for the six months ended
31 December 2013 as shown below. The full Interim Report and
Accounts will be available on the Company's website
(www.creatresources.com) shortly.
For further information please visit www.creatresources.com or
contact:
Creat Resources Holdings Limited
Morris R. Hansen, Company Secretary: Tel +613 6471 6228
Daniel Stewart & Company
Paul Shackleton, Emma Earl: Tel +44 20 7776 6550
Directors' Report
The directors of Creat Resources Holdings Limited ("CRHL")
submit herewith the financial report of Creat Resources Holdings
Limited and its subsidiaries (the "Company") for the half-year
ended 31 December 2013. This report is intended to be read in
conjunction with the 2013 Annual Report.
The Registered Office and principal place of business is 262
Main Street, Zeehan, Tasmania 7469 Australia.
In order to comply with the provisions of the Corporations Act
2001, the directors report as follows:
The names of the directors and company secretary in office
during or since the end of the half-year and up to the date of this
report are:
Directors and Company Secretary
Name Role Appointed Ceased
------------------- ----------------------- ---------- --------
Mr. Derek Leung Executive Chairman, 10/07/12 Current
Managing Director
& CEO
------------------- ----------------------- ---------- --------
Mr. Tad Ballantyne Deputy Chairman 18/03/08 Current
& Non-Executive
Director
------------------- ----------------------- ---------- --------
Mr. Morris General Manager, 26/06/12 Current
Hansen Company Secretary
& Executive Director
------------------- ----------------------- ---------- --------
Mr Phillip Non-Executive Director 11/02/09 Current
Simpson
------------------- ----------------------- ---------- --------
Mr Zhi Lin Non-Executive Director 15/08/13 Current
------------------- ----------------------- ---------- --------
The above named directors and company secretary have been in
office since the start of the half-year unless stated above.
Principal activities
The principal activity of the Consolidated Entity during the
period was investment in a company involved in mining in
Australia.
The Company was admitted to trading on AIM on 6 March 2007. The
Company initially focused on exploration and mining of zinc, lead
and silver deposits in Western Tasmania, Australia. A dual strategy
was undertaken that saw the company become an investor in Galaxy
Resources Limited, an ASX listed Lithium miner, explorer and
producer. During the 2013 financial year, the company sold its
Zeehan mining tenements in western Tasmania to focus on potential
investments elsewhere.
Operating Results
The consolidated loss of the Company for the half-year period
after providing for income tax amounted to $7,647,199 (2012 loss:
$3,995,817).
The operating loss was mainly due to foreign exchange loss
(AUD3,521,114) on revaluation of the outstanding convertible bonds,
which were issued in GBP, and accrued interest thereto
(AUD2,684,375). Total financial liabilities, as reflected in
Australian Dollars increased accordingly despite there was no
additional borrowing during the relevant period.
Review of Operations
Galaxy Resources Limited, Investment Asset
Galaxy Resources Limited ("Galaxy") is a Western Australian
company which plans to become one of the world's leading producers
of lithium compounds - the essential component for powering the
world's fast expanding fleet of hybrid and electric cars and
motorcycles. Through the development of its 17,000 tpa lithium
carbonate plant in Jiangsu province, Galaxy expects to be one of
the largest and lowest cost lithium compound producers in China.
Lithium compounds such as lithium carbonate are forecast to be in
short supply against high future demand due to advances in long
life batteries and sophisticated electronics including mobile
phones and computers. Galaxy has positioned itself to meet this
lithium future by not only mining the lithium, but also by
downstream processing to supply lithium carbonate to the expanding
Asian market.
The Company's shareholding in Galaxy is 37,584,912 shares.
During the reporting period the Company's holding was diluted
through various placements to 3.7% (30 June 2013: 6.4%).
Future developments
Since the disposal of the mining assets in Zeehan, Tasmania,
Australia, the Board of Directors have been actively looking for
investment opportunities for the Company. Due to unfavourable
market conditions throughout the period, particularly in the global
resources sector, the Board has yet to identify opportunities which
have been suitable to progress to completion.
Under the AIM Rules for Companies, if the Company has not been
able to implement its investing policy prior to the anniversary of
becoming an investing company (4 April 2014), trading in the
Company's ordinary shares on AIM will be suspended until such time
as the Company is able to implement its investing policy. If the
investing policy has not been implemented within 18 months of the
Company becoming an investing company the admission to trading on
AIM of the ordinary shares will be cancelled and the Board will
convene a general meeting of the Shareholders to consider further
appropriate actions.
Auditor's Independence Declaration
The auditor's independence declaration, as required under
section 307C of the Corporations Act 2001, is included on page 15
of the half-year report.
Signed in accordance with a resolution of directors made
pursuant to section 306(3) of the Corporations Act 2001.
On behalf of the Directors
CONDENSED CONSOLIDATED STATEMENT OF PROFIT & LOSS &
OTHER COMPREHENSIVE INCOME
Consolidated
Half-year Ended
------- --------------------------
Note 31 Dec 31 Dec
2013 2012
------- ------------ ------------
$ $
Continuing Operations
Revenue 18,679 87,704
Other Gains and Losses 3 (3,521,114) (513,166)
Impairment Expense 3 (1,240,303) (7,219,813)
Depreciation Expense (8,525) (7,229)
Finance Costs (2,684,375) (1,669,121)
Administration Expenses (98,736) (163,025)
Employee Expenses (96,959) (155,399)
Other Expenses (15,866) (50,829)
Loss before Tax (7,647,199) (9,690,878)
Income Tax Benefit - -
Loss for the period from
Continuing Operations (7,647,199) (9,690,878)
------------ ------------
Discontinued Operations
Profit/(Loss) for the period
from discontinued operations 4 - 5,695,061
Total Loss for the Period (7,647,199) (3,995,817)
------------ ------------
Other Comprehensive Income - -
Total Comprehensive Loss
for the Period (7,647,199) (3,995,817)
============ ============
Earnings Per Share
Basic (cents per share) (1.15) (0.6)
Diluted (cents per share) (1.15) (0.6)
The accompanying notes form part of these condensed
consolidated financial statements which must
also be read in conjunction with the 2013 Annual
Report.
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
Consolidated
------ ----------------------------
Note 31 Dec 30 June
2013 2013
------ ------------- -------------
$ $
Assets
Current Assets
Cash and Cash Equivalents 735,377 1,037,976
Trade and Other Receivables 15,679 25,462
Other Current Assets 13,453 11,595
Total Current Assets 764,509 1,075,033
------------- -------------
Non-Current Assets
Property, Plant and Equipment 236,451 250,478
Other Non-Current Assets 1,766,491 3,006,793
Total Non-Current Assets 2,002,942 3,257,271
------------- -------------
Total Assets 2,767,451 4,332,304
------------- -------------
Liabilities
Current Liabilities
Trade and Other Payables 129,232 258,578
Financial Liabilities 5 46,951,693 40,745,001
Provisions 17,396 12,396
Total Current Liabilities 47,098,321 41,015,975
------------- -------------
Total Liabilities 47,098,321 41,015,975
------------- -------------
Net Liabilities (44,330,870) (36,683,671)
============= =============
Equity
Issued Capital 69,408,416 69,408,416
Reserves 344,531 344,531
Accumulated Losses (114,083,817) (106,436,618)
---------------- ----------------
Total Deficit (44,330,870) (36,683,671)
================ ================
The accompanying notes form part of these condensed
consolidated financial statements which must also
be read in conjunction with the 2013 Annual Report.
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE HALF YEAR ENDED 31 DECEMBER 2013
Issued Retained Other Total
Capital Earnings Reserves
----------- -------------- ----------------- -------------
$ $ $ $
Balance at 1
July 2012 69,408,416 (86,328,929) 344,531 (16,575,982)
Loss for the
Period - (3,995,817) - (3,995,817)
Total comprehensive
income for the
period - (3,995,817) - (3,995,817)
Balance at 31
December 2012 69,408,416 (90,324,746) 344,531 (20,571,799)
=========== ============== ================= =============
Balance at 1
July 2013 69,408,416 (106,436,618) 344,531 (36,683,671)
Loss for the
Period - (7,647,199) - (7,647,199)
----------- -------------- ----------------- -------------
Total comprehensive
income for the
period - (7,647,199) - (7,647,199)
Balance at 31
December 2013 69,408,416 (114,083,817) 344,531 (44,330,870)
=========== ============== ================= =============
The accompanying notes form part of these condensed
consolidated financial statements which must also
be read in conjunction with the 2013 Annual Report.
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
Consolidated
Half-year Ended
31 Dec 31 Dec
2013 2012
----------------- -------------
$ $
Cash Flows from Operating Activities
Receipts from Customers 3,542 61,801
Payments to Suppliers and Employees (335,894) (561,331)
Net Cash used in Operating Activities (332,352) (499,530)
================= =============
Cash Flows from Investing Activities
Purchase of Exploration Licence - (10,000)
Proceeds from the sale of Property,
Plant & Equipment 1,179 14,221
Proceeds from Deposits and Mining
Bonds - 200,000
Proceeds from Sale of Shares - 225,551
Interest Received 14,506 53,052
Net Cash (used in) / provided
by Investment Activities 15,685 482,824
================= =============
Cash Flows from Financing Activities
Interest Paid (1,936) (5)
Proceeds from Borrowings 16,004 50,000
Net Cash (used in) / provided
by Financing Activities 14,068 49,995
================= =============
Net (decrease) / increase in
Cash and Cash Equivalents (302,599) 33,289
Cash and Cash Equivalents at
Beginning of the Half-Year 1,037,976 92,797
Cash and Cash Equivalents at
the End of the Half-Year 735,377 126,086
================= =============
The accompanying notes form part of these condensed
consolidated financial statements which must also
be read in conjunction with the 2013 Annual Report.
Note 1: Significant Accounting Policies
Statement of Compliance
The half-year financial report is a general purpose financial
report for the half-year ended 31 December 2013 prepared in
accordance with the Corporations Act 2001 and AASB 134 Interim
Financial Reporting. Compliance with AASB 134 ensures compliance
with International Financial Reporting Standard IAS 34 Interim
Financial Reporting.
The half-year report does not include notes of the type normally
included in an annual financial report and it is recommended that
it be read in conjunction with the most recent annual financial
report, and the public announcements made during the half-year in
accordance with the continuous disclosure requirements of the
Corporations Act 2001.
Basis of Preparation
The condensed consolidated financial statements have been
prepared on the basis of historical cost, except for the
revaluation of certain non-current assets and financial
instruments. Cost is based on the fair values of the consideration
given in exchange for assets. All amounts are presented in
Australian dollars, unless otherwise noted.
The accounting policies and methods of computation adopted in
the preparation of the half-year financial report are consistent
with those adopted and disclosed in the company's 2013 annual
financial report for the financial year ended 30 June 2013, except
for the impact of the Standards and Interpretations described
below. These accounting policies are consistent with Australian
Accounting Standards and with International Financial Reporting
Standards.
New and revised Standards
The Group has adopted all of the new and revised Standards and
Interpretations issued by the Australian Accounting Standards Board
(the AASB) that are relevant to their operations and effective for
the current half-year.
New and revised Standards and amendments thereof and
Interpretations effective for the current half-year that are
relevant to the Group include:
-- AASB 10 'Consolidated Financial Statements' and AASB 2011-7 'Amendments to Australian
Accounting Standards arising from the consolidation and Joint
Arrangements standards';
-- AASB 13 'Fair Value Measurement' and AASB 2011-8 'Amendments
to Australian Accounting Standards arising from AASB 13';
-- AASB 2012-2 'Amendments to Australian Accounting Standards -
Disclosures - Offsetting Financial Assets and Financial
Liabilities'; and
-- AASB 2012-5 'Amendments to Australian Accounting Standards
arising from Annual Improvements 2009-2011 Cycle'.
Impact of the application of AASB 10
AASB 10 replaces the parts of AASB 127 'Consolidated and
Separate Financial Statements' that deal with consolidated
financial statements and Interpretation 112 'Consolidation -
Special Purpose Entities'. AASB 10 changes the definition of
control such that an investor controls an investee when a) it has
power over an investee, b) it is exposed, or has rights, to
variable returns from its involvement with the investee, and c) has
the ability to use its power to affect its returns. All three of
these criteria must be met for an investor to have control over an
investee. Previously, control was defined as the power to govern
the financial and operating policies of an entity so as to obtain
benefits from its activities. Additional guidance has been included
in AASB 10 to explain when an investor has control over an
investee.
The application of AASB 10 has not had any material impact on
the amounts recognised or disclosures contained within the
consolidated financial statements.
Impact of the application of AASB 13
The Group has applied AASB 13 for the first time in the current
period. AASB 13 establishes a single source of guidance for fair
value measurements and disclosures about fair value measurements.
The scope of AASB 13 is broad; the fair value measurement
requirements of AASB 13 apply to both financial instrument items
and non-financial instrument items for which other AASBs require or
permit fair value measurements and disclosures about fair value
measurements.
AASB 13 defines fair value as the price that would be received
to sell an asset or paid to transfer a liability in an orderly
transaction in the principal (or most advantageous) market at the
measurement date under current market conditions. Fair value under
AASB 13 is an exit price regardless of whether that price is
directly observable or estimated using another valuation technique.
Also, AASB 13 includes extensive disclosure requirements.
AASB 13 requires prospective application from 1 January 2013. In
addition, specific transitional provisions were given to entities
such that they need not apply the disclosure requirements set out
in the Standard in comparative information provided for periods
before the initial application of the Standard. In accordance with
these transitional provisions, the Group has not made any new
disclosures required by AASB 13 for the comparative period, the
application of AASB 13 has not had any material impact on the
amounts recognised in the consolidated financial statements.
Impact of the application of AASB 2012-2 'Amendments to
Australian Accounting Standards - Disclosures - Offsetting
Financial Assets and Financial Liabilities'
The Group has applied the amendments to AASB 7 'Disclosures -
Offsetting Financial Assets and Financial Liabilities' in the
current period as detailed in AASB 2012-2 'Amendments to Australian
Accounting Standards - Disclosures - Offsetting Financial Assets
and Financial Liabilities'. The amendments to AASB 7 require
entities to disclose information about rights of offset and related
arrangements (such as collateral posting requirements) for
financial instruments under an enforceable master netting agreement
or similar arrangement.
The application of the AASB 2012-2 amendmentshas not had any
material impact on the amounts recognised or disclosures contained
within the consolidated financial statements.
Impact of the application of AASB 2012-5 'Amendments to
Australian Accounting Standards arising from Annual Improvements
2009-2011 Cycle'
The applicable principle amendments of AASB 2012-5 'Amendments
to Australian Accounting Standards arising from Annual Improvements
2009-2011 Cycle' include amendments to AASB1 'First-time Adoption
of Australian Accounting Standards', clarification of the
requirements for comparative information as per AASB 101
'Presentation of Financial Statements', and clarification of
segment information for total assets and liabilities reporting in
interim financial reports as per AASB 134 'Interim Financial
Reporting'.
The application of the AASB 2012-5 amendmentshas not had any
material impact on the amounts recognised or disclosures contained
within the consolidated financial statements.
The financial report has been prepared on the going concern
basis, which assumes continuity of normal business activities and
the realisation of assets and the settlement of liabilities in the
ordinary course of business.
During development stages, the Company sustained operating
losses. These losses have continued as the Company has transitioned
to an investment company, with losses for the half-year ended 31
December 2013 being $7,647,199 (2012: $3,995,817). It expects such
losses to continue for the remainder of the 2014 financial year.
The Company will finance its operations primarily through cash and
cash equivalents on hand, and future financing from the issuance of
debt or equity instruments. The Company has yet to generate any
significant revenues and has no assurance of future revenues.
The following plan is in place by Management to support the
going concern basis of the Company and the consolidated entity.
On 12 March 2014 the Company received an undertaking from Creat
Group in that, for the purposes of assisting the Company in
achieving its working capital forecast to 30 June 2015:
-- Creat Group will continue to provide further funding to CRHL
as required with interest rates to be charged based on market
interest rates; and
-- Creat Group will not call for or cause repayment of any loans
or convertible notes, including the payment of accrued interest on
such loans or convertible notes, held by Creat Group at 30 June
2013 or entered into/acquired by Creat Group subsequent to that
date, and interest that will be due and payable on such loans or
convertible notes through to 30 June 2015.
At the date of this report and having considered the above
factors, the directors are confident that the Company and the
consolidated entity will be able to continue as going concerns.
Note 2: Segment Information
AASB 8 requires operating segments to be identified on the basis
of internal reports about components of the Company that are
regularly reviewed by the chief operating decision maker in order
to allocate resources to the segment and to assess its
performance.
The chief decision maker of the Company is its Board of
Directors, and the system of internal reporting is such that there
is only one reportable segment under AASB 8, being investment in
companies involved in mining in both Australia and overseas.
Note 3: Disclosure of additional information
Other gains and losses
31 Dec 2013 31 Dec 2012
$ $
Foreign exchange (loss)/gain
arising on translation
of financial liabilities (3,515,611) (527,387)
Gain/(loss) on sale of
Assets (5,503) 14,221
------------- ------------
Total other income (3,521,114) (513,166)
============= ============
Available for sale Investment carried at fair value
The fair value of the investment in Galaxy Resources Limited at
31 December 2013 is $1,766,491 (30 June 2013: $3,006,793).
Note 4: Discontinued Operations
The combined results of the discontinued mining operations
included in the loss for the year are set out below. The
comparative loss and cash flows from discontinued operations have
been re-presented to include the mining operations classified as
discontinued in the current year. Full details of the discontinued
operations can be found within the 30 June 2013 annual report.
31 Dec 2013 31 Dec 2012
$ $
Gain on reversal of impairment - 6,081,651
Depreciation Expense - (64,443)
Employee Expenses - (190,146)
Site Operations - (132,001)
- 5,695,061
============================================== ============
Note 5: Financial liabilities
Financial liabilities include the following loans and
convertible notes:
31 Dec 2013 30 Jun 2013
$ $
Current
Loans from related party:
secured and unsecured
(i) 46,942,962 40,735,588
Other loans 6,680 -
Withholding tax payable 2,051 9,413
------------ ------------
46,951,693 40,745,001
============ ============
(i) Amount repayable to related party of the Company. Repayment
of these loans has been deferred through the continuing financial
support of Creat Group Company Limited ("Creat Group").
The above unsecured loans are covered by a letter of financial
support from Creat Group.
Note 6: Contingencies and commitments
There are no known contingent liabilities or contingent assets
since the end of the last annual reporting period.
Note 7: Subsequent events
Fair Value of Investment in Galaxy
Since the end of the financial year, there has been an increase
in the fair value of the company's available for sale investment.
With reference to the ASX quoted share price for Galaxy, the fair
value of the company's investment has increased by approximately
$751,698 since 31 December 2013. In accordance with the
requirements of AASB 110 Events after the Reporting Period, this
increase has not been recognised within this financial report.
The directors declare that:
(a) in the directors' opinion, 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
(b) in the directors' opinion, the attached financial statements
and notes thereto are in accordance with the Corporations Act 2001,
including compliance with accounting standards and giving a true
and fair view of the financial position and performance of the
consolidated entity.
Signed in accordance with a resolution of the directors made
pursuant to section 303(5) of the Corporations Act 2001.
On behalf of the Directors
This information is provided by RNS
The company news service from the London Stock Exchange
END
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