Ratel Group Limited - Interim Financial Statements

PERTH, Western Australia, Feb. 14, 2012 /CNW/ -

Interim Financial Statements

For the period
1 July 2011 to 31 December 2011

RATEL GROUP LIMITED
Level 5, The BGC Centre, 28 The Esplanade, Perth WA 6000
Phone: +61 8 9263 4000 Fax: +61 8 9263 4020.
Website: www.ratelgroup.com

NOTICE OF NO AUDITOR REVIEW OF
INTERIM FINANCIAL STATEMENTS

The accompanying interim consolidated financial statements for Ratel Group Limited ("Ratel Group" or the "Company") have been prepared by management in accordance with the International Accounting Standards, which include International Financial Reporting Standards ("IFRS"). These financial statements are the responsibility of management and have not been reviewed by the auditors.  The most significant accounting principles have been set out in the audited financial statements and Annual Information Form dated 28 September 2011 for the period ended 30 June 2011 and the related notes thereto. These financial statements have been prepared on a historical cost basis of accounting.  A precise determination of many assets and liabilities is dependent on future events.  Therefore, estimates and approximations have been made using careful judgment. Recognizing that the Company is responsible for both the integrity and objectivity of the financial statements, management is satisfied that these financial statements have been fairly presented.

For further information please contact:

Hannah Hudson
Chief Financial Officer and Company Secretary

Telephone: +61 8 9263 4000
Fax: +61 8 9263 4020

CORPORATE DIRECTORY

DIRECTORS:
Mark S Savage
Michael J Carrick
Ronald F J Clarke
Ian C Fisher

SECRETARY:

Hannah C Hudson

PRINCIPAL OFFICE:
Level 5
BGC Centre
28 The Esplanade
Perth WA 6000

TELEPHONE: +61 8 9263 4000
FACSIMILE: +61 8 9263 4020

BANKERS:
Australia and New Zealand Banking Group Limited
77 St Georges Terrace
Perth  WA  6000

STOCK EXCHANGE:
Toronto Stock Exchange Inc
Exchange Code:
RTG - Fully paid ordinary shares
              SHARE REGISTER:
Canadian Register
Computershare Investor Services Inc
100 University Ave, 11th Floor
Toronto Ontario M5J2Y1
Canada

Telephone: +1 416 263 9449
Facsimile: +1 416 981 9800

LAWYERS
Middletons
Level 32
44 St Georges Terrace
Perth WA 6000

Blake, Cassels & Graydon
Suite 2600
3 Bentall Centre
59 Burrard Street
Vancouver, B.C. Canada
V7X 1L3

NORTH AMERICAN CONTACT:
Mark S Savage
1703 Edwardo y Juanita Ct
Albuquerque, New Mexico, 87107, USA

Telephone: +1 505 344 2822
Facsimile: +1 505 344 2922
Email: marksavage@comcast.net

RATEL GROUP LIMITED
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Unaudited - Prepared By Management

For the three and six months ended 31 December 2011

            Consolidated
Three months
ended
Dec 31,
2011
      Consolidated
Six months
ended
Dec 31,
2011
      Consolidated
Period from
Oct 18, 2010
to Dec 31,
2010
    Note                        
            US$       US$       US$
Continuing Operations                            
Revenue   3       1,556       2,557       6
Exploration and evaluation expenditure   4       (1,003,978)       (1,969,355)       (157,848)
Business development           (36,769)       (49,926)       -
Foreign exchange gains/(losses)           (18,711)       (58,031)       (3,940)
Administrative expenses   5       (447,000)       (697,295)       (4,370)
                             
Loss from continuing operations           (1,504,902)       (2,772,050)       (166,152)
Income tax benefit           -       -       -
Loss for the period           (1,504,902)       (2,772,050)       (166,152)
Other comprehensive income/(loss)                            
Other comprehensive income/(loss) for the period           -       -       -
Total comprehensive income/(loss) for the period           (1,504,902)       (2,772,050)       (166,152)
                             
Loss attributable to:                            
Owners of the Company           (1,504,902)       (2,772,050)       (166,152)
                             
Total comprehensive loss attributable to:                            
Owners of the Company           (1,504,902)       (2,772,050)       (166,152)
                             
Earnings per share for loss attributable to the
ordinary equity holders of the company
                           
Basic loss per share (cents)           (0.72)       (1.85)       n/a
Diluted loss per share (cents)           (0.72)       (1.85)       n/a

The above consolidated statement of comprehensive income should be read in conjunction with the accompanying notes.  The Company was incorporated on October 18, 2010, hence the prior year comparative figures represent the period from incorporation.

RATEL GROUP LIMITED
INTERIM CONSOLIDATED BALANCE SHEET
Unaudited - Prepared By Management

 
 
 
   
 
 
 
Note
 
    Consolidated
31 December 2011
US$
    Consolidated
30 June 2011
US$
ASSETS                  
Current Assets                  
Cash and cash equivalents     7     2,670,906     6,628,366
Trade and other receivables           160,501     128,251
Prepayments           31,921     27,895
Total Current Assets           2,863,328     6,784,512
                   
Non-Current Assets                  
Property, plant and equipment           187,102     611,203
Construction in Progress           1,402,189     -
Total Non-Current Assets           1,589,291     611,203
                   
TOTAL ASSETS           4,452,619     7,395,715
                   
LIABILITIES                  
Current Liabilities                  
Trade and other payables     8     168,212     339,259
Total Current Liabilities           168,212     339,259
                   
TOTAL LIABILITIES           168,212     339,259
                   
NET ASSETS           4,284,407     7,056,456
                   
SHAREHOLDER'S DEFICIT                  
Issued capital     6     14,493,355     14,493,353
Reserve     9     (3,076,157)     (3,076,157)
Accumulated losses           (7,132,791)     (4,360,740)
TOTAL SHAREHOLDER'S EQUITY           4,284,407     7,056,456

The above consolidated statement of financial position should be read in conjunction with the accompanying notes

RATEL GROUP LIMITED
INTERIM CONSOLIDATED STATEMENT OF CASH FLOWS
Unaudited - Prepared By Management

For the three and six months ended 31 December 2011

        Consolidated
Three months
ended
Dec 31,
2011
      Consolidated
Six months
ended
Dec 31,
2011
      Consolidated
Period from
Oct 18, 2010 to
Dec 31,
2010
    Note                    
        US$       US$       US$
Cash flows from operating activities                        
Receipts from operations       770       770       -
Payments to suppliers and employees       (497,066)       (813,493)       (159,341)
Exploration costs       (881,510)       (2,094,712)       -
Interest received       755       1,704       6
Net cash outflow from operating activities       (1,377,051)       (2,905,731)       (159,335)
                         
Cash flows from investing activities                        
Payments for property, plant & equipment       (529,961)       (994,370)       133,345
Net cash inflow/(outflow) from investing activities       (529,961)       (994,370)       133,345
                         
Cash flows from financing activities                        
Loans funds received       -       -       95,066
Proceeds from issue of shares       -       -       2
Share issue costs       -       -       -
Net cash inflow from financing activities       -       -       95,068
                         
Net increase / (decrease) in cash and cash equivalents       (1,907,012)       (3,900,101)       69,078
                         
Cash and cash equivalents at beginning of the period       4,594,874       6,627,831       -
Effects of exchange rate fluctuations on the balances of
cash held in foreign currencies
      (16,956)       (56,824)       (3,940)
Cash and cash equivalents at end of the financial period   7   2,670,906       2,670,906       65,138

The above consolidated statement of cash flow should be read in conjunction with the accompanying notes.  The Company was incorporated on October 18, 2010, hence the prior year comparative figures represent the period from incorporation.

RATEL GROUP LIMITED
INTERIM CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Unaudited - Prepared By Management

For the six months ended 31 December 2011

                             
    Issued capital
US$
    Acquisition
reserve
US$
    Share based
payment reserve
   US$
    Accumulated
losses
US$
    Total
US$
At 1 July 2011   14,493,355     (4,300,157)     1,224,000     (4,360,741)     7,056,457
Loss for the period   -     -     -     (2,772,050)     (2,772,050)
Total comprehensive income /(loss) for the period   -     -     -     (2,772,050)     (2,772,050)
  At 31 December 2011   14,493,355     (4,300,157)     1,224,000     (7,132,791)     4,284,407

For the period from 18 October 2010 to 31 December 2010

                             
    Issued capital
US$
    Acquisition
reserve
US$
    Share based
payment reserve
   US$
    Accumulated
losses
US$
    Total
US$
At 18 October 2010   -     -     -     -     -
Loss for the period   -     -     -     (166,152)     (166,152)
Total comprehensive income /(loss) for the period   -     -     -     (166,152)     (166,152)
Issue of share capital   4,974,631     -     -     -     4,974,631
Acquisition reserve   -     (26,723,606)     -     -     (26,723,606)
  At 31 December 2010   4,974,631     (26,723,606)     -     -     (21,915,127)

The above consolidated statement of changes in equity should be read in conjunction with the accompanying notes.  The Company was incorporated on October 18, 2010 hence the prior year comparative figures are from date of incorporation to December 31, 2010.

NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS
For the period 1 July 2011 to 31 December 2011
Unaudited - Prepared By Management

1. CORPORATE INFORMATION

The financial report of Ratel Group Limited ("the Company", "Ratel", "the Group" or "the Entity") as at 31 December 2011 and for the period from 1 July 2011 to 31 December 2011 ("the period") .

The Company was incorporated on 18 October 2010 in the British Virgin Islands. Its registered address is Jayla Place, Wickhams Cay I, Road Town, Tortola, VG1110 British Virgin Islands.  The Entity's ultimate parent company is Ratel Group Limited.

The principal activity of the Group during the period consisted of mineral exploration.

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

(a) Basis of Accounting

The interim financial report is a general purpose condensed financial report which has been prepared in accordance with the requirements of the International Financial Reporting Standards ('IFRS") as issued by the International Accounting Standards Board.

The consolidated financial statements have also been prepared on a historical cost basis and are presented in United States Dollars (US$).

The Company was incorporated on 18 October 2010 and accordingly comparatives for the Statement of Comprehensive Income and Statement of Cash Flows are for the two and a half month period from incorporation to 31 December 2010.

For the purposes of preparing the interim financial report, the interim has been treated as a discrete reporting period.

(b) Significant accounting policies

The interim consolidated financial statements have been prepared using the same accounting policies as used in the financial statements for the period ended 30 June 2011 contained in the audited financial statements for Ratel Group Limited dated 28 September 2011.

 
 
    Consolidated
3 months
ended
December 31,
2011
US$
    Consolidated
6 months
ended
December 31,
2011
US$
    Consolidated
Period from
October 18, 2010
to December 31,
2010
US$
3. REVENUES                  
                   
                   
Interest Income     756     1,787     6
Other revenue     770     770     -
      1,556     2,557     6

4. EXPLORATION AND EVALUATION EXPENSES

 
 
 
    Consolidated
3 months
ended
December 31,
2011
US$
    Consolidated
6 months
ended
December 31,
2011
US$
    Consolidated
Period from
October 18, 2010
to December 31,
2010
US$
Employee benefits     303,284     546,753     37,773
Consultants fees     8,549     28,712     5,748
Motor vehicle expenses     4,795     15,463     12,481
Travel expenses     84,827     186,778     34,356
Exploration and drilling costs     455,436     895,861     32,842
Depreciation expense     7,947     16,354     2,902
Rental expense     27,059     39,653     6,138
Other     112,081     239,781     25,608
      1,003,978     1,969,355     157,848

5. ADMINISTRATIVE EXPENSES

Audit & accounting fees                       24,576                    33,721                                 -
Legal fees       237,269       315,382       -
Management fees       100,898       200,532       -
Share registry costs       22,211       30,245       -
Other       62,046       117,415       4,370
        447,000       697,295       4,370

6. CONTRIBUTED EQUITY

        Consolidated
December 31,
2011
Number
      Consolidated
June 30,
2011
Number
(a)  Issued and paid up capital:          
Issued and fully paid shares     150,000,000       150,000,000

Movements in contributed equity during the past three months were as follows:

Ordinary Shares             Number             US$
Opening balance at 1 July 2011             150,000,000             14,493,353
Total shares on issue at 31
December 2011
            150,000,000             14,493,353

On 17 December 2010 the Company issued 49,999,998 shares at an issue price of C$0.10 per share to acquire the interest in the African assets held by Ratel Gold (now SAU). The Company successfully closed its initial public offering on 7 January 2011, issuing 100 million common shares and Ratel Gold (now SAU) distributed its 50 million shares to shareholders, pursuant to the terms of the Spin-out Reorganization.  The Spin-out Reorganization involved the acquisition of all of the subsidiaries of Ratel Gold (now SAU) that had an interest in the African Assets by Ratel Group and the distribution in specie of all common shares in Ratel Group to Shareholders as a reduction in paid up capital of the Company. Each shareholder of Ratel Gold (now SAU) was issued five common shares in the capital of Ratel Group for every nine common shares of Ratel Gold (now SAU) held on the share distribution record date of 6 January 2011, reducing Ratel Gold's ownership to 0%, with CGA Mining Limited holding a 19.1% interest.

As part of the Spin-out Reorganisation, Ratel Group also undertook a capital raising (the "Spin-out Financing") by way of subscription receipts to fund its future activities and to satisfy TSX original listing requirements.  The subscription receipts issued in connection with the Spin-out Financing automatically converted to common shares of Ratel Group as part of the Spin-out Reorganization on 7 January 2011, and 100,000,000 common shares of Ratel Group have been issued in connection therewith raising gross proceeds of C$10,000,000.

7. CASH AND CASH EQUIVALENTS

 
 
 
      December 31,
2011
US$
         June 30,
2011
US$
Cash at bank and on hand         2,670,906       6,628,366
      2,670,906       6,628,366

8. TRADE AND OTHER PAYABLES

                   December 31,
2011
US$
       June 30,
2011
US$
                   
                   
Trade creditors                        168,212 169,121
Accrued expenses                 - 170,138
                  168,212 339,259

9. Reserves

 
 
 
 
 
 
December 31,
2011
US$
      June 30,
2011
US$
Acquisition reserve   (4,300,157)       (4,300,157)
Share based payment reserve      1,224,000       1,224,000
    (3,076,157)       (3,076,157)

Acquisition reserve

The acquisition reserve is used to record the difference between the consideration transferred and the equity acquired for common control business combinations.

Share based payment reserve

The share based payment reserve is used to record the value of share based payments provided to employees, including key management personnel and directors as part of remuneration.

10. SEGMENT INFORMATION

The following table presents the revenue and result information regarding operating segments for the period ended December 31, 2011.

 
 
 
Nigeria
December 31,
2011
US$
    Zambia
December 31,
2011
US$
    Ghana
December 31,
2011
US$
    Eliminations/Unallocated
December 31,
2011
US$
    Consolidated
December 31,
2011
US$
Revenue                          
Other income 83     770     -     1,704     2,557
                           
Results                          
Segment                          
Profit/(Loss)        (1,729,848)     (273,617)     -     (768,585)     (2,772,050)
         

 
 
 
Nigeria
December 31,
2010
US$
    Zambia
December 31,
2010
US$
    Ghana
December 31,
2010
US$
    Eliminations/Unallocated
December 31,
2010
US$
    Consolidated
December 31,
2010
US$
Revenue                          
Segment Revenue 41     -     -     (35)     6
Other income -     -     899     (899)     -
                           
Results                          
Segment                          
Profit/(Loss) (908,557)     (533,354)     (423,160)     1,698,919     (166,152)

11. EVENTS SUBSEQUENT TO BALANCE DATE

There are no significant events subsequent to balance date. 

SOURCE Ratel Group Limited

For further information:

Ratel Group Limited
Level 5, BGC Centre
28 The Esplanade
Perth Western Australia 6000

Tel:  +61 8 9263 4000
Fax: +61 8 9263 4020
Email: info@ratelgroup.com
www.ratelgroup.com

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