Half Yearly Report - 31 December 2008
RANGE RESOURCES LIMITED
ABN 88 002 522 009
HALF-YEARLY REPORT FOR THE PERIOD ENDED
31 DECEMBER 2008
RANGE RESOURCES LIMITED
ABN 88 002 522 009
CONTENTS
Directors' Report .......................................................2-4
Auditors' Declaration of Independence .....................................5
Income Statement ..........................................................6
Balance Sheet .............................................................7
Statement of Changes in Equity ............................................8
Cash Flow Statement .......................................................9
Notes to and Forming Part of the Financial Statements .................10-17
Directors' Declaration ...................................................18
Independent Review Report to the Members .................................19
CORPORATE DIRECTORY
Directors
Sam Jonah - Non Executive Chairman
Peter Landau - Executive Director
Marcus Edwards-Jones - Non Executive Director
Company Secretary
Peter Landau
Registered Office
Level 3, 1 Havelock Street
West Perth, WA 6005
Tel: (08) 9488 5220
Fax: (08) 9324 2400
Principal Place of Business
Level 3, 1 Havelock Street
West Perth, WA 6005
Tel: (08) 9488 5220
Fax: (08) 9324 2400
Website
www.rangeresources.com.au
Country of Incorporation
Range Resources Limited is domiciled
and incorporated in Australia
Auditors
BDO Kendalls Audit & Assurance (WA) Pty Ltd
128 Hay Street
Subiaco, WA 6008
Tel: (08) 9380 8400
Fax: (08) 9380 8499
Share Registry
Computershare Investor Services Pty Ltd
Level 2, Reserve Bank Building
45 St Georges Terrace
Perth, WA 6000
Tel: (08) 9323 2000
Fax: (08) 9323 2033
Home Stock Exchange
Australian Stock Exchange Limited
Level 2
Exchange Plaza
2 The Esplanade
Perth, WA 6000
ASX Code: RRS
AIM Code: RRL
RANGE RESOURCES LIMITED
ABN 88 002 522 009
DIRECTORS' REPORT
Your directors submit the consolidated financial report of Range Resources
Limited for the half-year ended 31 December 2008.
1. Directors
The names of the Directors who held office during or since the end of the
half-year:
Sam Jonah Non Executive Chairman
Peter Landau Executive Director
Marcus Edwards-Jones Non Executive Director
Michael Povey Non-Executive Director Resigned 29 October 2008
Liban Bogor Non Executive Director Resigned 22 July 2008
2. Results
The Consolidated entity incurred an operating loss after income tax of
$5,590,456 (December 2007: $8,276,082) for the half-year ended 31 December
2008.
3. Review of Operations
In October 2008 a new management team was appointed. Range was pleased to
announce that Mr Mark Patterson will lead the new management team and with over
25 years experience in the oil and gas industry the Board believes he is a
valuable asset to the Company. Mr Greg Smith and Mr Pawan Sharma also joined
Range as consultants working closely with Mr Patterson who will take up a Board
position in early 2009.
Range considers these appointments a strong indication of its commitment to the
development of its oil and gas areas in the Puntland State of Somalia. Range
believes that the collective expertise of the new management team, together
with that of the existing Directors, will provide the Company with the
leadership it requires going forward and, particularly, in the development
phase of the Puntland project.
As part of the changes to the Board of Directors, Mr Michael Povey and Mr Liban
Bogor have stepped down as Directors of Range.
Exploration - Dharoor
The Company's joint venture partner, Africa Oil, completed its 2D seismic
programme in Puntland's Dharoor Valley. A total of 782 km of good quality
vibroseis data, comprising a grid of 15 lines were recorded.
Africa Oil is currently processing the new survey and combining the results
with 555 km of older seismic data previously acquired. Mapping of this combined
survey is scheduled to commence in early 2009 and drilling locations will be
selected before the end of the first quarter 2009. A more definite timetable
for rig mobilisation and drilling will be announced as drilling locations are
finalised by the end of the first quarter 2009.
Range notes that the current world financial crisis combined with recent low
oil prices has meant that rig availability has increased significantly while
budgeted drilling costs have decreased significantly, thereby providing Africa
Oil greater flexibility in finalising its programme.
The Company has commenced contributions to the expenditure programme on the
Dharoor Valley (subject to finalisation of cost allocation under the joint
operating agreement with Africa Oil). It should be noted that Africa Oil's
expenditure to date includes a rig mobilization fee and purchase and delivery
of inventory (mainly well heads and casing) sufficient for 4 wells.
RANGE RESOURCES LIMITED
ABN 88 002 522 009
DIRECTORS' REPORT (cont'd)
Offshore Programme
Work is underway to compile and review previously collected seismic data in
order to design a new 2D seismic acquisition programme for Puntland's offshore
oil and gas areas. Discussions regarding possible joint ventures with third
parties are expected to be finalised first quarter 2009. The key point to note
is that, in line with the world economic situation referred to above, the
proposed costs of any proposed offshore programme have reduced significantly
and, to this end, the Company is looking at alternative operators in addition
to renegotiating the current offer from the Chinese geophysical group. The
Company (with the input of its new management team) believes that one or more
joint ventures with industry partners in offshore Puntland would allow the
Company to explore while reducing exposure to exploratory risk and significant
capital expenditures.
Political Situation
As announced on 13 January 2009 following a democratic regional election held
in Puntland, Somalia where the Company holds oil and gas assets, Dr. Abdirahman
Mohamed "Farole," was appointed the fourth President of Puntland. Dr. Farole,
63, won in the third round of voting by the 66-seat Puntland Parliament, which
essentially functions as the region's Electoral College.
Range believes the open and peaceful nature of the election of its President,
His Excellency Dr Farole highlights the strong wish of the Puntland people for
security and democracy to be maintained and enhanced in the region.
During the official crowning ceremony in Garowe, His Excellency Dr Farole gave
special thanks to the outgoing President Hersi for the smooth transition of
power and declared that former President Hersi will become the Government's
special advisor on development issues. The appointment of former President
Hersi will greatly assist Range as it seeks to establish a good working
relationship with the new Government in dealing with offshore development and
key areas of mineral interest.
In early February 2009 a Presidential policy update of the new Puntland
Government was presented to the Puntland Parliament.
This policy update covered many areas of interest to the Puntland region, but
of particular interest to Range was the following statement:
"As you all know there are agreements signed by the former government that
raised complaints from various groups. These contracts were between the
government, foreign and local companies. In principle, I recognise and accept
these agreements, but we have to update ourselves and make sure that they are
benefiting the people and are within the laws of Puntland."
Range looks forward to establishing a constructive and mutually beneficial
relationship with the new Puntland Government and its President, His
Excellency, Dr. Abdirahman Mohamed Farole.
RANGE RESOURCES LIMITED
ABN 88 002 522 009
DIRECTORS' REPORT (cont'd)
Mineral Exploration
During the half-year, the Company significantly scaled down its expenditures
regarding the Western Australian tenements. The tenements are to be divested to
ex Director, Michael Povey in a sale agreement reached as part of his
settlement arrangements. Moving forward, the exercise will save the Company
approximately $1,200,000 per annum.
4. Events Subsequent to Reporting Date
* The Company successfully completed its fully subscribed non renounceable
rights issue raising $1.5m. 104,652,472 unlisted options exercisable at 1.5
cents and 26,163,118 free attaching listed options exercisable at 5 cents
were issued.
* The Company settled an outstanding loan of $1.5m owed by a debt/equity swap
and will acquire equity in a UK based Company that has interests in a
Uranium Project in Kyrgyzstan.
* A Deed of Settlement and Release between the Company and ex Director,
Michael Povey, was finalised. The key terms of the settlement are a cash
component of $100k, the issue of 1,666,666 shares and divesting the
portfolio of Western Australian tenements in a sale agreement.
5. Auditors Independence Declaration
The Lead auditor's independence declaration under section 307C of the
Corporations Act 2001 is set out on page 5 for the half-year ended 31 December
2008.
This report is made in accordance with a resolution of the Board of Directors.
Peter Landau
Executive Director
Dated this 16th day of March 2009
BDO Kendalls Audit & Assurance (WA) Pty Ltd 128 Hay Street
SUBIACO WA 6008
PO Box 700
WEST PERTH WA 6872
Phone 61 8 9380 8400
Fax 61 8 9380 8499
aa.perth@bdo.com.au
www.bdo.com.au
ABN 79 112 28 84 787
16 March 2009
The Directors
Range Resources Limited
Level 3, 1 Havelock Street
WEST PERTH WA 6008
Dear Sirs
DECLARATION OF INDEPENDENCE BY BRAD McVEIGH TO THE DIRECTORS OF RANGE RESOURCES
LIMITED
As lead auditor of Range Resources Limited for the half year ended 31 December
2008, I declare that to the best of my knowledge and belief, there have been no
contraventions of:
* the auditor independence requirements of the Corporations Act 2001 in
relation to the review; and
* any applicable code of professional conduct in relation to the review.
This declaration is in respect of Range Resources Limited and the entities it
controlled during the period.
Brad McVeigh
Director
BDO Kendalls Audit & Assurance (WA) Pty Ltd
Perth, Western Australia
BDO Kendalls is a national association of separate partnerships and entities
RANGE RESOURCES LIMITED
ABN 88 002 522 009
INCOME STATEMENT
FOR THE HALF-YEAR ENDED
31 DECEMBER 2008
Consolidated
31 December 31 December
Notes 2008 2007
$ $
Revenue from continuing operations
Interest Income 126,524 311,343
Other Income 33,105 5,000
Expenses from continuing operations
Depreciation (41,734) (29,032)
Administration expenses 2 (2,338,373) (6,258,208)
Loss on disposal of subsidiaries 10 - (1,426,448)
Loan forgiven - (353,449)
Impairment on available for sale financial assets (2,609,105) -
Foreign exchange gain/(loss) 428,950 (525,204)
Loss before income tax expense from
continuing operations 2 (4,400,633) (8,275,998)
Income tax expense - -
Loss after tax from continuing operations (4,400,633) (8,275,998)
Loss from discontinued operations 10 (1,189,823) (84)
Net loss for the period (5,590,456) (8,276,082)
Net loss attributable to members of the (5,590,456) (8,276,082)
economic entity
Continuing Operations;
Basic loss per share (cents per share) (2.20) (4.98)
Diluted loss per share (cents per share) N/A N/A
Discontinued operations
Basic loss per share (cents per share) (0.59) (0.00)
Diluted loss per share (cents per share) N/A N/A
The Company's potential ordinary shares were not considered dilutive as the
Company is in a loss position.
The accompanying notes form part of this financial report.
RANGE RESOURCES LIMITED
ABN 88 002 522 009
BALANCE SHEET
AS AT
31 DECEMBER 2008
Consolidated
31 December 30 June
2008 2008
Notes $ $
Current Assets
Cash and cash equivalents 256,654 4,137,360
Trade and other receivables 1,761,129 1,441,220
Other current assets 43,747 108,932
Total Current Assets 2,061,530 5,687,512
Non-Current Assets
Property, plant & equipment 291,259 288,119
Financial assets available for sale 6 471,563 2,004,561
Exploration expenditure 7 78,468,214 77,120,784
Total Non-Current Assets 79,231,036 79,413,464
Total Assets 81,292,566 85,100,976
Current Liabilities
Trade and other payables 1,213,179 815,190
Total Liabilities 1,213,179 815,190
Net Assets 80,079,387 84,285,786
Equity
Issued capital 9 102,166,271 101,619,057
Reserves 11,214,318 11,014,714
Accumulated losses (33,301,202) (28,347,985)
Total Equity 80,079,387 84,285,786
The accompanying notes form part of these financial statements.
RANGE RESOURCES LIMITED
ABN 88 002 522 009
STATEMENT OF CHANGES IN EQUITY
FOR THE HALF-YEAR ENDED
31 DECEMBER 2008
Ordinary Accumulated Available Share Total
Shares Losses for Sale Based
Investments Payment
Reserve Reserve
$ $ $ $
Balance at 1 July 2007 70,866,367 (24,002,303) - 10,975,482 57,839,546
Loss attributable to members - (8,276,082) - - (8,276,082)
of economic entity
Total recognised income and - (8,276,082) - - (8,276,082)
expense for the half-year
Shares issued during the year 31,886,734 - - - 31,886,734
Transaction costs (1,028,409) - - - (1,028,409)
Transfers to and from reserves
- Options issued/expired - 8,967,406 - 725,582 9,692,988
Balance at 31 December 2007 101,724,692 (23,310,979) - 11,701,064 90,114,777
Balance at 1 July 2008 101,619,057 (28,347,985) (835,439) 11,850,153 84,285,786
Net movement in available for - - 835,439 - 835,439
sale investments reserve
Loss attributable to members of - (5,590,456) - - (5,590,456)
economic entity
Total recognised income and - (5,590,456) 835,439 - (4,755,017)
expense for the half-year
Shares issued during the year 555,000 - - - 555,000
Transaction costs (7,786) - - - (7,786)
Transfers to and from reserves
- Options expired - 637,239 - (637,239) -
- Options issued - - - 1,404 1,404
Balance at 31 December 2008 102,166,271 (33,301,202) - 11,214,318 80,079,387
The accompanying notes form part of this financial report.
RANGE RESOURCES LIMITED
ABN 88 002 522 009
CASH FLOW STATEMENT
FOR THE HALF-YEAR ENDED
31 DECEMBER 2008
Consolidated
31 December 31 December
2008 2007
$ $
Cash Flows From Operating Activities
Payments for exploration and evaluation (2,613,717) (1,659,311)
Payments to suppliers and employees (1,052,165) (1,583,656)
Interest received 53,071 311,280
Other - 5,000
Net cash provided by/(used In) Operating (3,612,811) (2,926,687)
Activities
Cash Flows From Investing Activities
Payments for plant and equipment (226,614) (49,154)
Payments for exploration and development - (16,698,851)
expenditure
Payments for investments - (1,500,000)
Loans to related entities (33,495) (8,587)
Net cash provided by/(used In) Investing (260,109) (18,256,592)
Activities
Cash Flows From Financing Activities
Proceeds from issues of shares - 8,423,963
Payment of share issue costs (7,786) (349,453)
Net cash provided by/(used in) Financing (7,786) 8,074,510
Activities
Net Increase/(Decrease) In Cash Held (3,880,706) (13,108,769)
Cash at beginning of period 4,137,360 22,896,484
Cash at end of period 256,654 9,787,715
The accompanying notes form part of these financial statements.
RANGE RESOURCES LIMITED
ABN 88 002 522 009
NOTES TO THE FINANCIAL STATEMENTS
FOR THE HALF-YEAR ENDED
31 DECEMBER 2008
Note 1: Basis of Preparation
The half-year financial statements are a general purpose financial report
prepared in accordance with the requirements of the Corporations Act 2001 and
Accounting Standard AASB 134: Interim Financial Reporting.
It is recommended that this financial report be read in conjunction with the
financial report for the year ended 30 June 2008 and any public announcements
made by Range Resources Limited during the half-year in accordance with
continuous disclosure requirements arising under the Corporations Act 2001.
The accounting policies adopted are consistent with those of the previous
financial year and corresponding interim reporting period.
a) Exploration and Evaluation Expenditure
The recoverability of the carrying amount of the exploration and evaluation
assets is dependent on the successful development and commercial exploitation,
or alternatively, sale of the respective areas of interest.
b) Discontinued Operations
A discontinued operation is a component of the entity that has been disposed of
or is classified as held for sale and that represents a separate major line of
business or geographical area of operations, is part of a single co-ordinated
plan to dispose of such a line of business or area of operations, or is a
subsidiary separately on the face of the income statement.
c) Going Concern
At 31 December 2008, the consolidated entity had a cash balance of $256,654 and
had incurred net cash used in operating activities of $3,612,811 during the
half-year ended 31 December 2008. The accounts have been prepared on the basis
that the entity can meet it's commitments as and when they fall due and can
therefore continue normal business activities, and the realisation of assets
and liabilities in the ordinary course of business.
The ability of the company to continue as a going concern is dependant upon the
Company raising funding for future activities through the issue of equity or
debt and obtaining and providing continued funding for its oil and gas
programs. The Directors consider that there are reasonable grounds to believe
that the Company will continue to raise equity and/or debt to meet its short to
medium term funding requirements.
RANGE RESOURCES LIMITED
ABN 88 002 522 009
NOTES TO THE FINANCIAL STATEMENTS
FOR THE HALF-YEAR ENDED
31 DECEMBER 2008
Consolidated
31 December 31 December
Notes 2008 2007
$ $
Note 2. Loss for the half-year
The following significant revenue and expense items are relevant in
explaining the financial performance for the interim period:
Consulting Fees 553,999 554,975
Equity Based Payment - Directors 9 - 4,713,914
Equity Based Payment - Consultants 556,404 -
Directors Fees 306,537 330,998
Settlement Expense 135,596 -
Public Relations Expense 102,515 105,077
Travel Expenses 127,947 92,407
Other expenses 555,375 460,837
Note 3. Events Subsequent To Reporting Date
* The Company successfully completed its fully subscribed non renounceable
rights issue raising $1.5m. 104,652,472 unlisted options exercisable at 1.5
cents and 26,163,118 free attaching listed options exercisable at 5 cents
were issued.
* The Company settled an outstanding loan owed by a debt/equity swap and will
acquire equity in a UK based Company that has interests in a Uranium
Project in Kyrgyzstan.
* A Deed of Settlement and Release between the Company and ex Director,
Michael Povey, was finalised. The key terms of the settlement are a cash
component of $100k, the issue of 1,666,666 shares and divesting the
portfolio of Western Australian tenements in a sale agreement.
Note 4. Contingent Liabilities
As detailed in the 30 June 2007 Annual Report, the Company completed the
acquisition of the remaining 49.9% of the Puntland Rights from Consort Private
Limited in May 2007. Under the terms of the Agreement, Range must issue a
further 45 million shares and 11.25 million unlisted options ($1.00, 01 October
2010) to Consort upon completion of the first hydrocarbon well drilled in
Puntland.
In addition upon completion of the first 4 hydrocarbon wells drilled in
Puntland, the Company must pay $US20 million to Consort.
Consort are also entitled to received a 2.5% net royalty on any Puntland
projects derived in respect of Range's interest.
During the year ended 30 June 2008, the Company settled a transaction regarding
the disposal of subsidiaries with operations in Peru (as disclosed in note 10).
Range Resources has received conflicting advice from local advisors as to
whether any tax liability arises in Peru from this transaction and we are
therefore unable at this stage to quantify any such liability if it in fact
exists.
The Directors are not aware of any other contingent liabilities as at 31st
December 2008.
RANGE RESOURCES LIMITED
ABN 88 002 522 009
NOTES TO THE FINANCIAL STATEMENTS
FOR THE HALF-YEAR ENDED
31 DECEMBER 2008
Note 5. Segment Information
Primary Segment - Geographical
The consolidated entity operates in two geographical segments being
Australia and Somalia and one industry segment, that of mineral
exploration.
Geographical Australia Somalia Unallocated Consolidated
Segments
$ $ $
31 December 2008
Revenue
Interest Revenue - - 126,524 126,524
Other Revenue - - 33,105 33,105
Results
Segment Results (1,031,080) (808,976) (3,750,400) (5,590,456)
31 December 2007
Revenue
Interest Revenue - - 311,343 311,343
Other Revenue - - 5,000 5,000
Results
Segment Results - - (8,276,082) (8,276,082)
Consolidated
Notes 31 December 30 June
2008 2008
$ $
Note 6. Financial assets available for sale
Listed investments, at fair value
- Interest in other corporations 471,563 2,004,561
Total available for sale financial assets 471,563 2,004,561
Available for sale financial assets comprise investments in the
ordinary share capital of various entities. There are no fixed returns
or fixed maturity date attached to these investments. They have been
assessed as impaired during the period resulting in the change to the
income statement.
No assets have been pledged as security.
RANGE RESOURCES LIMITED
ABN 88 002 522 009
NOTES TO THE FINANCIAL STATEMENTS
FOR THE HALF-YEAR ENDED
31 DECEMBER 2008
Consolidated
31 December 30 June
Notes 2008 2008
$ $
Note 7. Exploration & Evaluation Expenditure
Opening net book amount 77,120,784 84,026,028
Reduction in value of securities issued - (11,119,608)
Additions - exploration 2,537,253 9,526,238
Tenements relinquished/sold - (5,311,874)
Projects written off (158,743) -
Tenements transferred to "Held for Sale" 8 (1,031,080) -
Closing net book amount 78,468,214 77,120,784
The recoverability of the carrying amount of exploration assets is
dependent on the successful development and commercial exploitation or
sale of the respective mining permits. Amortisation of the costs
carried forward for the development phase is not being charged pending
the commencement of production.
Capitalised costs amounting to $2,613,717 (2008: $1,659,311) have been
included in cash flows from operating activities in the cash flow
statement.
Note 8. Non Current Assets Classified as
Held for Sale
Opening balance - -
Transferred from exploration and 7 1,031,080 -
evaluation expenditure
Less Provision for loss (1,031,080) -
Closing balance - -
Reconciliation to income statement charge
Exploration and evaluation expenditure
Projects written off (158,743) -
Loss recognised on assets held for sale (1,031,080) -
Impairment of capitalised exploration (1,189,823) -
expenditure in income statement
Exploration expenditure relating to the WA Tenements was re-classified
as "Held for sale" due to the company's intention to sell or farm out
its interests in the project. The carrying value has been fully
provided for due to a settlement agreement with ex-Director, Mr Michael
Povey, in which these tenements are to be divested to him. As part of
the settlement, Range will retain a royalty interest of 2%.
RANGE RESOURCES LIMITED
ABN 88 002 522 009
NOTES TO THE FINANCIAL STATEMENTS
FOR THE HALF-YEAR ENDED
31 DECEMBER 2008
Note 9. Contributed Equity
31 December 30 June
Notes 2008 2008
$ $
Issued share capital
209,304,943 (June 2008: 194,304,943) ordinary 110,144,342 109,589,342
shares, fully paid.
4,925,000 (June 2008: 4,925,000) partly paid 1,732,615 1,732,615
shares
Share issue costs (9,710,686) (9,702,900)
102,166,271 101,619,057
Movements in issued share capital:
Balance at the beginning of the period 101,619,057 70,866,367
Shares issued through placements - 8,700,456
Shares converted from options - 23,283
Shares issued as consideration for Puntland rights - 18,450,000
Shares issued to New Management Team 555,000 -
Shares issued to Directors 2 - 4,713,914
Partly paid shares reduced during period - (26,385)
Less cost of share issue (7,786) (1,108,578)
Balance at the end of the period 102,166,271 101,619,057
No. of Shares No. of Shares
Balance at the beginning of the period 199,229,943 143,967,635
Ordinary shares issued during the period 15,000,000 55,337,308
Reduction in partly paid shares - (75,000)
Balance at the end of the period 214,229,943 199,229,943
On 30 June 2007, the Company issued 1,175,000 of the previously approved
1,250,000 Partly Paid shares to Consultants, however, due to error, incorrectly
recorded the full 1,250,000 shares being issued in its accounts. The balance of
75,000 Partly Paid shares were never issued as the consultant to which they
were intended to be issued, subsequently ceased providing services to the
Company. Accordingly, the reduction in Partly Paid shares during the
comparative period is to rectify this accounting error.
During the year ended June 2007, 3,750,000 Partly Paid shares, previously
approved by shareholders, were allotted and issued to directors at an issue
price of $0.60 each and were deemed to have been paid up to $0.30 each, leaving
$0.30 payable by the holder within 13 months of the date of issue.
On 26 September 2008, the Board resolved, in accordance with clause 32.9 of the
Company's constitution that the shares be forfeited and that payment will not
be enforced with regards to the unpaid balance. The Board intents to will take
appropriate action to effect the cancellation of the Partly Paid shares.
RANGE RESOURCES LIMITED
ABN 88 002 522 009
NOTES TO THE FINANCIAL STATEMENTS
FOR THE HALF-YEAR ENDED
31 DECEMBER 2008
Note 9. Contributed Equity (continued)
Options:
The Company has on issue 68,078,215 (June 2008:127,078,036) options over
un-issued capital in the Company.
31 December 2008 30 June 2008
Number of Number of
Options Options
Movements in Options:
Balance at the beginning of the period 127,077,116 118,206,584
Options issued during the period 4,725,000 8,871,452
Options exercised during the period - (920)
Options expired (63,723,901) -
Balance at the end of the period 68,078,215 127,077,116
Terms and Conditions of Contributed Equity
Ordinary shares have the right to receive dividends and, in the event of
winding-up the Company, to participate in the proceeds from the sale of all
surplus assets in proportion to the number of and amounts paid up on shares
held.
Ordinary shares entitle their holder to one vote, either in person or by proxy,
at a meeting of the Company
Note 10. Discontinued Operations
a. Yono and Somirelco
On 29 September 2006 the Company announced it had entered a final agreement
with Contact Uranium Limited ("Contact"), now known as Ram Resources Limited,
to dispose of its 80% holding in the Corachapi Uranium Project. Under the terms
of the agreement Range would divest its 80% share in Sociedad Minera de
Responsabilidad Limitada Corachapi ("Somirelco") and its 100% share of Yono
Nominees Pty Ltd ("Yono") in return for a non-refundable cash deposit of
$250,000 payable immediately and 8 million Contact shares.
On 28 November 2007 the final tranche of Contact shares were paid completing
the transaction.
Financial information relating to the discontinued operations for the period to
the date of disposal is set out below.
b. WA tenements
The tenements are to be divested to ex Director, Michael Povey in a sale
agreement reached as part of his settlement arrangements. The carrying value
has been fully provided for in the accounts, refer note 8. As per the
settlement agreement, the tenements are to be divested to him and Range will
retain a royalty interest of 2%.
RANGE RESOURCES LIMITED
ABN 88 002 522 009
NOTES TO THE FINANCIAL STATEMENTS
FOR THE HALF-YEAR ENDED
31 DECEMBER 2008
Note 10. Discontinued Operations (continued)
c) Financial performance
The financial performance for Somirelco and Yono presented are for the
period ended 28 November 2007 (date of disposal) and 31 December 2008.
Note Tenements Somirelco Yono
31 Dec 2008 31 Dec 2007 31 Dec 2008 28 Nov 2007 31 Dec 2008 28 Nov 2007
$ $ $ $ $ $
Revenue - - - - - -
Expenses 8 (1,189,823) - - - - (84)
Loss before income (1,189,823) - - - - (84)
tax
Income tax expense - - - - - -
Loss after income (1,189,823) - - - - (84)
tax of discontinued
operations
Loss on sale of company - - - (257,913) - (1,168,451)
before income tax
Income tax expense - - - - - -
Loss on sale of company - - - (257,913) - (1,168,451)
after income tax
Loss from (1,189,823) - - (257,913) - (1,168,535)
discontinued
operations
(d) Carrying amounts of assets and liabilities
The carrying amounts of assets and liabilities for the Western Australian
tenements as at 30 June 2008 and 31 December 2008. The carrying amounts of
assets and liabilities for Somirelco and Yono as at 28 November 2007 and at
31 December 2008 are as set out below:
Tenements Somirelco Yono
31 Dec 2008 30 June 2008 31 Dec 2008 28 Nov 2007 31 Dec 2008 28 Nov 2007
$ $ $ $ $ $
Cash - - - 1 - 10
Exploration and - 647,129 - 1,245,762 - 4,054,125
evaluation
Total assets - 647,129 - 1,245,763 - 4,054,135
Loan from parent - - - 351,836 - 1,614
company
Total liabilities - - - 351,836 - 1,614
Net assets/(liabilities) - 647,129 - 893,927 - 4,052,521
RANGE RESOURCES LIMITED
ABN 88 002 522 009
NOTES TO THE FINANCIAL STATEMENTS
FOR THE HALF-YEAR ENDED
31 DECEMBER 2008
Note 10. Discontinued Operations (continued)
(d) Details of the sale of the 31 December 28 November
subsidiaries 2008 2007
$
Consideration received - 3,520,000
Carrying amount of net assets sold - (4,946,448)
Loss on sale before income tax - (1,426,448)
Income tax expense - -
Loss on sale after income tax - (1,426,448)
Note 11. Related Parties
Related party information remains unchanged since 30 June 2008 except as
follows:-
* Resignation of Liban Bogor as Director
* Resignation of Michael Povey as Director
* Participation in the Company's non-renounceable rights issue which occurred
from the 24 February to the 3 March 2009:-
Sir Sam Jonah Indirectly 4,135,023 new options
$0.015, 31 May 2009
1,033,753 attaching options
$0.05, 31 December 2011
Peter Landau Indirectly 5,000,000 new options
$0.015, 31 May 2009
1,250,000 attaching options
$0.05, 31 December 2011
Marcus Edward-Jones Directly 300,000 new options
$0.015, 31 May 2009
75,000 attaching options
$0.05, 31 December 2011
RANGE RESOURCES LIMITED
ABN 88 002 522 009
DIRECTORS DECLARATION
The Directors of the company declare that:
1) The financial statements and notes set out on pages 6 to 17:
(i) Give a true and fair view of the financial position of the Consolidated
Entity as at 31 December 2008 and its performance for the half-year ended on
that date, and
(ii) Comply with Accounting Standards AASB 134 "Interim Financial Reporting"
and the Corporations Regulations 2001.
2) 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.
Signed in accordance with a resolution of the Board of Directors.
Peter Landau
Executive Director
Dated this 16th day of March 2009
BDO Kendalls Audit & Assurance (WA) Pty Ltd 128 Hay Street
SUBIACO WA 6008
PO Box 700
WEST PERTH WA 6872
Phone 61 8 9380 8400
Fax 61 8 9380 8499
aa.perth@bdo.com.au
www.bdo.com.au
ABN 79 112 28 84 787
INDEPENDENT AUDITOR'S REVIEW REPORT
TO THE MEMBERS OF RANGE RESOURCES LIMITED
Report on the Half-Year Financial Report
We have reviewed the accompanying half-year financial report of Range Resources
Limited, which comprises the balance sheet as at 31 December 2008, and the
income statement, statement of changes in equity and cash flow statement for
the half-year ended on that date, a statement of accounting policies, other
selected explanatory notes and the directors' declaration of the consolidated
entity comprising the disclosing entity 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 disclosing entity are responsible for the preparation and
fair presentation of the half-year financial report in accordance with
Australian Accounting Standards (including the Australian Accounting
Interpretations) and the Corporations Act 2001. This responsibility includes
establishing and maintaining internal control relevant to the preparation and
fair presentation of the half-year financial report that is free from material
misstatement, whether due to fraud or error; selecting and applying appropriate
accounting policies; and making accounting estimates that are reasonable in the
circumstances.
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 Interim and Other Financial
Reports 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 2008 and its
performance for the half-year ended on that date; and complying with Accounting
Standard AASB 134 Interim Financial Reporting and the Corporations Regulations
2001. As the auditor of Range Resources Limited, 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.
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 Range
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 2008 and of its performance for the half-year ended on that date; and
(b) complying with Accounting Standard AASB 134 Interim Financial Reporting
and Corporations Regulations 2001.
Material Uncertainty Regarding Continuation as a Going Concern
Without qualifying our conclusion, we draw attention to the matters disclosed
in Note 1(c). As a result of these matters, a significant uncertainty exists
regarding continuation as a going concern. The company will have to seek
additional funding or complete the sale of assets if it is to continue its
activities. If the company is unable to obtain additional funding or complete
the sale of assets it may cast significant doubt about the company's ability to
continue as a going concern and whether it will be able to realise its assets
and extinguish its liabilities, in the ordinary course of business, at the
values carried in the financial statements.
Material Uncertainty Regarding Recoverability of Deferred Exploration and
Evaluation Expenditure
Without qualifying our conclusion, we draw attention to the matter disclosed in
Note 7. There is uncertainty as to the recoverability of the deferred
exploration and evaluation expenditure assets of Range Resources Limited. The
recoverability of the deferred exploration and evaluation expenditure assets s
is dependant upon the successful development and commercialisation of the
underlying areas of interest or their sale. Should the company be unable to
successfully develop, commercialise or sell the exploration assets, there is
significant doubt whether the company will be able to realise the asset at the
values carried in the balance sheet.
BDO Kendalls Audit & Assurance (WA) Pty Ltd
Brad McVeigh
Director
Perth, Western Australia
Dated this 16th day of March 2009
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