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RESOURCE GENERATION LIMITED - Annual General Meeting 2018 Chairmans Address

Release Date: 30/11/2018 08:54
Code(s): RSG     PDF:  
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Annual General Meeting 2018 Chairman’s Address

     Resource Generation Limited
     Registration number ACN 059 950 337
     (Incorporated and registered in Australia)
     ISIN: AU000000RES1
     Share Code on the ASX: RES
     Share Code on the JSE: RSG
     (“Resgen” or the “Company”)



                                                       ANNUAL GENERAL MEETING 2018

                                                                 CHAIRMAN’S ADDRESS



     Ladies and Gentlemen

     Thank you for attending this annual general meeting for Resgen Shareholders.

     You, our Shareholders, can be forgiven for becoming impatient with what has become a
     lengthy process before we can conclude our project funding.

     Let me reassure all of you here today, along with our more remote stakeholders, that the
     Board and the Executive Team have been working tirelessly to secure credit approval for
     the project funding and during 2018 a lot of progress has been made. For example:

      .      Firstly, our Boikarabelo Project is not only fully permitted but our Project Team has
             complied with all the requirements of the Project’s social and labour plans and with
             environmental conditions thereby fundamentally securing our ‘license to operate’;

      .      Secondly, in April this year the South African Industrial Development Corporation of
             South Africa became the first of the lending syndicate members to conclude its credit
             approval process, with an amount of 540 million Rand committed to a bi-lateral senior
             loan facility agreement. The significance of the IDC’s loan is that a major lender has
             deemed the Project bankable;


Resource Generation Limited (ACN 059 950 337)
c/o Level 1, 17 Station Road, Indooroopilly, QLD, 4068
GPO Box 126, Albion QLD 4010. Phone +27 (0) 11 010 6310 Fax +27 (0) 86 539 3792
Directors: Lulamile Xate (Chairman), Rob Croll, Dr. Konji Sebati, Colin Gilligan, Leapeetswe Molotsane, Manish Dahiya, Peter Watson
Interim MD & CEO: Leapeetswe ‘Papi’ Molotsane
Company Secretary: Mike Meintjes                                                                                                      www.resgen.com.au
.   Thirdly, our Project has been given ‘a clean bill of health’ through a recent refresh
    during October of the Independent Expert reports covering technical, environment,
    marketing and legal;

.   And finally, the Board will shortly be able to consider funding options for the
    construction of the 43-kilometre mouth of mine to main line rail link.

With these considerable milestones under our belt, it remains for Management to expedite
the remaining steps diligently and as quickly as possible. Apart from giving you the
assurance that the team is working tirelessly to secure the requisite credit approvals, I am
reluctant to put a timeline to this process, which is both thorough and exhaustive.

In anticipation of credit approvals, we have also been working in parallel on satisfying the
conditions precedent in the proposed term sheets before financial close. A number of these
conditions have already been satisfied and considerable progress has been made towards
completion of the remainder. Undertaking this work in advance of the credit approvals
should significantly reduce the time between credit approval and financial close.

South Africa is currently suffering from a shortage of coal and studies have revealed that
the construction of new coal mines is a strategic necessity. The global outlook for coal is
also positive. Because of your support, Boikarabelo is the most advanced new coal mine
project in the country and my hope, and expectation, is that 2019 will witness the start of
construction of the mine. Additionally, for our would-be employees and neighbouring
communities, this development has now become a critical economic imperative.

Ladies and gentlemen, thank you once again for joining us here today, and for your
sustained interest in what we continue to believe is a great project. We’ll keep you posted
on further developments.



Lulamile Xate
Chairman
30 November 2018
JSE Sponsor: Deloitte & Touche Sponsor Services (Pty) Limited




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