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18 GEO ENERGY RESOURCES LIMITED | Annual Report 2012
Cashflow Review
In FY2012, the Group generated approximately US$21.4 million from its operational activities. The Group’s operational
cash flow of US$38.3 million was mainly offset by working capital requirements of US$9.4 million as well as income tax
expenses of US$6.8 million.
One of the key highlights of the Group’s financial year would be the net cash generated from financing activities of US$48.1
million. This was due mainly to the proceeds from the issuance of shares of US$68.8 million, partially offset by the Group’s
repayment of loans and finance leases of US$16.4 million as well as share issuance expenses pursuant to the Group’s
listing of US$3.1 million.
The Group also utilised approximately US$4.9 million in investing activities, mainly due to the purchase of additional
property, plant and equipment in line with the Group’s planned expansion of its operations.
Operational Highlights
Transition into a listed company on the Mainboard of the Singapore Exchange
2012 was a very eventful year. Geo Energy successfully made the transition from a private limited company to a listed
company on the Mainboard of the Singapore Exchange. At the end of our first day of listing, our counter closed at 43.5
cents, an increase of 33.8% from our offer price of 32.5 cents and was the most active stock on the Singapore Exchange,
with approximately 323.2 million shares changing hands and recording a turnover of S$149.9 million.
From the listing to date, we have gained publicity and received strong backing from the investment community. This has
translated positively to our share price since listing. The show of confidence and the support we have garnered from
the investment community has proven that there is a healthy demand for coal production companies. We are indeed
encouraged and we desire to grow from strength to strength with the continued support of the community.
BEK Mine
One of the highlights of FY2012 has been the performance of the Group’s owned mine concession. In January 2012,
preparatory work began on the BEK mine and in February 2012, we began coal production. By September 2012, we
had produced approximately 445,000 tonnes of coal and were on course to achieve our target of 700,000 tonnes of coal
produced. At the end of the year, not only did we achieve our target, we actually surpassed it by a significant number,
producing a total of 964,000 tonnes of coal. This accomplishment, achieved in our first official year as a mine owner cum
operator, has given the Group the confidence and momentum going into 2013 and there is renewed vigor on the ground to
ensure that our standards remain high.
Mining Services
As part of our transition into a mine owner cum operator, we began the search for partnerships with mine owners which
would allow us to extend our expertise in their coal mines. In December 2012 and January 2013, we entered into our
maiden coal sale and purchase contracts as well as mining services contracts for two mining concessions.