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ENEGEX LIMITED
ABN 28 160 818 986
CORPORATE DIRECTORY
CONTENTS
Chairman’s Review………………………………1
Directors’ Report .................................................. 3
Remuneration Report ............................................ 9
Corporate Governance ........................................ 11
Directors’ Declaration ......................................... 13
Statement of Profit or Loss and
Other Comprehensive Income ............................ 14
Statement of Financial Position .......................... 15
Statement of Changes in Equity .......................... 16
Statement of Cash Flows .................................... 17
Notes to the Financial Statements ....................... 18
Audit Report ...................................................... 31
Auditor’s Independence Declaration................... 33
Shareholder and Other Information .................... 34
E.G Albers (Chairman)
R.L. Clark
A.P. Armitage
COMPANY SECRETARY
R.J. Wright
Registered Office
and Principal Administration Office
Level 21, 500 Collins Street
Melbourne, Victoria 3000, Australia
Telephone:
Facsimile:
Email:
Website:
+61 (0)3 8610 4713
+61 (0)3 8610 4799
admin@enegex.com.au
www.enegex.com.au
Auditor
Grant Thornton Audit Pty Ltd
GPO Box 4736
Melbourne, Victoria 3001 Australia
Share Registry
Automic Pty Ltd
Level 3
50 Holt Street
Surry Hills, NSW 2010, Australia
Telephone: 1300 288 664 (within Australia)
Telephone: +61 (2) 9698 5414 (outside Australia)
Website: www.automic.com.au
Stock Exchange Listing
ASX Limited
Level 4, North Tower, Rialto
525 Collins Street
Melbourne, Victoria 3000 Australia
ASX Code:
ENX
Ordinary Shares
Incorporated in the State of Victoria
17 October 2012
ENEGEX LIMITED
ABN 28 160 818 986
CHAIRMAN’S REVIEW
Dear Shareholders
Enegex is a natural resources company with its securities listed on the ASX. Its particular focus
over recent years has been to seek opportunities that may be created by advances in energy
generation, transmission and storage, with a particular emphasis on the natural resources
required.
Enegex’s Kimberley Project comprises application for two exploration licenses in the eastern
margin of the Kimberley Basin of Western Australia targeting Vanadium, Cobalt-Nickel, PGE
and Fluorite mineralisation. All minerals with a potential role to play in energy transmission
and storage. Prior exploration in the two areas has been extremely limited, focussed on gold and
diamonds, and the geology superficially mapped as “Hart Dolerite”, a regionally extensive
Proterozoic sill complex which has historically not been considered prospective.
As a result of advances in geological understanding, and building on recent data including
mapping and government data, the Hart Dolerite is now understood to comprise a layered
intrusive suite of rocks of which some parts are identified to be prospective for a range of
mineralisation. The disseminated magnetite gabbro hosts the Speerwah Dome vanadium deposit
(adjacent to Enegex’s project area). Disseminated gold and copper in the sulphides in the
intrusive suite indicate potential for reef-type mineralization in the magnetite-rich parts of the
layered intrusion. High cobalt and coincident high nickel anomalies within other parts indicate a
prospectively fertile host rock for these minerals.
Our involvement with the Cornea oil and gas accumulation offshore Western Australia, where
we had a 14.875% joint venture interest, came to an end during the year. A Retention Lease
over the Cornea accumulation had been granted in May 2014 for a five year-term.
In order for a Retention Lease to be renewed, the Commonwealth-Western Australia Joint
Authority (JA) must be satisfied that the accumulation is “not presently commercial but is likely
to be commercially viable within 15 years”. The Cornea JV lodged an application to renew the
Retention Lease for a further five years, demonstrating to the authorities that the field was
clearly not presently commercially viable, and identifying the oil price, production and cost
parameters that would be necessary for the field to become commercially viable. It identified
numerous avenues by which the field’s viability could be improved and proposed a work
1
ENEGEX LIMITED
ABN 28 160 818 986
program focused on strategies for accessing both more oil volumes and lowering the
development cost.
A renewal of the Retention Lease would have allowed for the possibility that oil demand would
result in oil prices recovering sufficiently over the next five years to meet or exceed the
necessary threshold oil price needed to justify any further substantial investment in either
drilling or development.
However, following receipt of correspondence regarding the renewal application from the
National Offshore Petroleum Titles Administrator (NOPTA), the Joint Venture withdrew its
renewal application, having concluded that NOPTA was unlikely to support renewal of the
Retention Lease and that the JA would therefore be unlikely to grant such renewal on the
realistic terms we sought, given that oil prices are currently far below the level at which any
substantial further investment could presently be justified.
Enegex remains open to other natural resource opportunities and continues to evaluate
opportunities including in the area of:
•
•
•
•
The exploration for strategic energy, transmission and storage minerals
Energy storage technologies
Alternative and renewable energy sources
Natural gas for domestic consumption
I thank my co-directors for their support during the year.
E.G. Albers
Chairman
18 October 2019
2
ENEGEX LIMITED
ABN 28 160 818 986
DIRECTORS’ REPORT
The directors present their report on the results and state of affairs of Enegex Limited (the group
or the company or Enegex) for the year ended 30 June 2019.
PRINCIPAL ACTIVITY
The principal activity of the company during the financial year ended 30 June 2019 was the
exploration for natural resources, unchanged since the incorporation of the Company.
FINANCIAL RESULTS FOR THE YEAR
The company recorded an operating loss after income tax for the year ended 30 June 2019 of
$307,079 (2018: $83,503).
SIGNIFICANT CHANGES IN STATE OF AFFAIRS
Other than outlined in this report there have been no significant changes in the state of affairs
during the financial year and to the date of this report.
DIVIDENDS
No dividend has been paid, provided or recommended during the financial year and to the date of
this report.
LIKELY DEVELOPMENTS AND EXPECTED RESULTS
The likely developments in the company’s operations in future years and the expected result from
those operations are highly dependent on success in the permit areas in which the company holds
an interest.
REVIEW OF FINANCIAL POSITION
At 30 June 2019, the company had a working capital (current assets less current liabilities) surplus
of $133,902 (2018: $255,733).
3
ENEGEX LIMITED
ABN 28 160 818 986
REVIEW OF OPERATIONS
Kimberley Basin Exploration Licences
In May 2019 the company made application for two exploration licenses in the eastern margin of
the Kimberley Basin of Western, a culmination of its expanded its focus over recent years to
consider potential opportunities that may be created by advances in energy generation,
transmission and storage (refer Figure 1).
Enegex
Applications
Area
Figure 1 Enegex Application Areas shown on regional geology
Enegex has identified the area covered by its two applications as offering prospectivity for
Vanadium, Cobalt-Nickel, PGE and Fluorite mineralisation.
The geology of the tenements has been mapped as “Hart Dolerite”, a regionally extensive
Proterozoic sill complex which has historically not been considered prospective. The tenement
areas have previously been the subject of limited exploration, focused on gold and diamonds
(refer Figure 2).
4
ENEGEX LIMITED
ABN 28 160 818 986
Figure 2: Historical Exploration in and around Enegex Application Areas shown on regional
magnetics (reduced to pole first vertical derivative)
Enegex has identified three recent advances in geological understanding that potentially alter the
prospectivity of the Hart Dolerite:
Recent mapping and exploration of the Speewah Dome, immediately to the north of the
Enegex tenement areas, has identified that the Hart Dolerite comprises a layered intrusive
suite of rocks (Intrusive Suite), and that the prospective part of the Intrusive Suite is the
Disseminated Magnetite Gabbro which hosts the Speerwah Dome Vanadium Deposit
(adjacent to the Enegex application area). Disseminated gold and copper have also been
identified in the sulphides of the Intrusive Suite, indicating potential for reef-type PGE
mineralization in the upper, differentiated, magnetite-rich parts of the layered intrusion.
Regolith sampling by Geological Survey WA (GSWA) has identified high cobalt and
coincident high nickel anomalies in Hart Dolerite, indicating prospective fertile host rocks
for these minerals within the Suite.
A later epithermal event has been identified in the Hart Dolerite in the Speewah area with
carbonate and epithermal fluorite overprinting the dolerite.
Fluoride is currently being investigated as a potential replacement for lithium batteries.
The limited historical exploration in the Enegex application areas has not determined which units
of the Intrusive Suite are exposed. Thus, following grant of exploration licenses, Enegex intends
to conduct exploration activities to determine the presence or otherwise of prospective units
within the tenement area.
5
ENEGEX LIMITED
ABN 28 160 818 986
Other Mineral Resources Opportunities
Enegex is open to other natural resource opportunities including gold and base metals and
continues to evaluate opportunities to generate shareholder value including in the areas of
The exploration for strategic energy, transmission and storage minerals
New energy storage technologies
Alternative and renewable energy opportunities
Cornea Retention Lease (WA-54-R)
The five year term of the WA-54-R Cornea Retention Lease in which Enegex had a 14.75% joint
venture interest ended during the year, on 5 May 2019.
In order for a Retention Lease to be granted and subsequently renewed, the Commonwealth-
Western Australia Joint Authority (JA) must be satisfied that the accumulation is “not presently
commercial but is likely to be commercially viable within 15 years”.
The Cornea JV initially lodged an application to renew the Retention Lease for a further five
years, predicated on the work completed over the initial lease term, especially the last two years of
the lease. Its application was accompanied by detailed oil, gas and water production simulation
forecasts generated from an integrated reservoir model prepared by a team of independent
specialists comprising a petrophysicist, geologists, geophysicists and reservoir engineers. The
development concept and cost estimates were prepared by an independent engineering firm.
The Cornea accumulation has had 18 wells drilled into it and its immediate environs. The renewal
application and our studies demonstrated that the field is not presently commercially viable, even
adopting an extremely cost efficient development concept of a platform and subsea storage unit.
The renewal application demonstrated the oil price, production and cost parameters required for
the field to be commercially viable. It identified numerous avenues by which the field’s
commercial viability could be improved. The submission proposed a work program focused on
strategies for accessing more oil volumes and lowering the development cost.
A renewal of the Retention Lease would have allowed for the possibility that oil demand would
result in oil prices recovering sufficiently over the next five years to meet or exceed the necessary
threshold oil price needed to justify any further substantial investment in either drilling or
development.
The National Offshore Petroleum Titles Administrator (NOPTA) provided a “request for further
information” in relation to the renewal application, as is typical with all titles administration
matters. However, this “request” was unusual in that it did not in fact request any information or
seek any clarifications. Rather, it advised that “insufficient information has been provided to
demonstrate that recovery of petroleum from the lease area is likely to become commercially
viable within 15 years, and therefore to support a recommendation to renew Petroleum Retention
Lease WA-54-R” with extremely wide and general reasons cited without reference to any of the
detailed supporting content provided by the Joint Venture in its renewal application.
Having reviewed NOPTA’s “request”, the Joint Venture considered that NOPTA was unlikely to
support renewal of WA-54-R and that the JA is therefore unlikely to grant such renewal.
6
ENEGEX LIMITED
ABN 28 160 818 986
WA-54-R presented an unusual retention lease circumstance, having been granted over an oil
accumulation, rather than a gas accumulation. The Cornea JV’s decision to apply for a Retention
Lease in 2013 reflected advice from the Joint Authority in early 2013 that it should do so. In
September 2013 the Coalition Government’s Policy for Resources and Energy was released with
measures aimed at ensuring that Retention Leases are held for “a legitimate need to secure gas for
long-lived production projects”. The Cornea JV lodged its application for Retention Lease the
next month (October 2013) and WA-54-R was granted in May 2014, reflecting the Joint
Authority’s earlier advice to the Cornea JV, notwithstanding the September 2013 policy change.
The Cornea JV believes that NOPTA and the JA intended to apply the September 2013 policy and
deny a renewal of the Cornea Retention Lease, despite the Cornea JV’s significant investment in
Cornea. This investment includes the drilling of Cornea-3. The Cornea JV increased its
investment over the course of the Retention Lease, recently completing an integrated reservoir
model in accordance with the work program variation approved by the JA.
The Cornea JV has considered avenues open to it, including pathways for administrative review in
the event of a negative decision and ultimately formed the view that NOPTA’s letter reflected an
insurmountable hurdle. To develop Cornea, significant production and oil price hurdles would
need to be overcome. The Cornea JV believes that, for a marginal field such as Cornea to have
any chance of development, it must be supported by a constructive and commercial approach
from the relevant regulator.
The Cornea JV therefore decided to withdraw its application to renew WA-54-R, which
withdrawal has been approved with the result that WA-54-R is no longer in force.
7
ENEGEX LIMITED
ABN 28 160 818 986
DIRECTORS
The directors in office during the entire financial year and to the date of this report were:
EG Albers LLB, FAICD
Chairman since 12/4/17
Director since 1/10/15
Mr Albers has over 35 years’ experience as a director and administrator in corporate law,
petroleum exploration and resource sector investment. Mr Albers became involved in oil
exploration in 1977 and has a track record of developing significant oil and gas assets.
Mr Albers has held interests in a number of companies active in the petroleum industry in
Australia and Malaysia.
Mr Albers is also a director of the ASX listed companies Octanex Limited and Peako Limited.
RL Clark B.Bus (dist), CA, MAICD, AGIA, ACIS
Executive Director
Director since 12/10/15
Mrs Clark has more than 20 years’ experience focussed primarily on the natural resources sector.
Her experience includes business development, financial modelling and analysis, capital raising
and mergers and acquisitions, as well as managing joint venture partners, government, regulator
and investor relations.
Mrs Clark is also a director of the ASX listed companies Octanex Limited and Peako Limited.
AP Armitage FCA FAICD
Non-Executive Director
Director since 11/4/17
Mr Armitage began his professional career with an international accounting firm. After
qualification he was invited into partnership of a national firm. Since the early 1980s he has been
a director of a number of listed exploration companies in both Australia and New Zealand. He
resigned as a Non-Executive director of ASX listed company Peako Limited on 20 March 2019.
COMPANY SECRETARY
RJ Wright B Bus, CPA – appointed 17 October 2012
Mr Wright is a senior financial professional with over 30 years commercial experience in the
resource, energy and manufacturing industries gained at various companies and locations,
including 14 years at BHP. As well as carrying out his secretarial duties for Enegex, he is the
company’s Chief Financial Officer and the Company Secretary and CFO of the ASX listed
companies Octanex Limited and Peako Limited. Mr Wright is a member of CPA Australia.
8
ENEGEX LIMITED
ABN 28 160 818 986
BOARD AND COMMITTEE MEETINGS
The following table sets out the number of formal meetings held during the year and the number
of meetings attended by each director. All other matters that required formal Board resolutions
were dealt with via written circular resolutions. In addition, the directors met and corresponded
at numerous times throughout the financial year to discuss the Group’s affairs. The board
undertakes all audit committee functions.
EG Albers
RL Clark
AP Armitage
Board of Directors
Held
2
2
2
Attended
2
2
2
Held
2
2
2
Audit Committee
Attended
2
2
2
SHARE CAPITAL
ORDINARY SHARES
No shares were issued during the year and to the date of this report.
OPTIONS
No options were issued during the year and to the date of this report.
REMUNERATION REPORT
This report is audited.
Directors / Executives
Position Held
EG Albers
RL Clark
AP Armitage
Non-Executive Chairman
Executive Director
Non-Executive Director
During the year there were no employees or consultants to the company that meet the definition of
key management personnel, other than the directors.
Remuneration levels are reviewed annually.
Director Remuneration
During the year under review, directors were remunerated a total of $Nil (2018: $Nil).
There is no performance related remuneration for directors. Directors’ remuneration paid covers
all board activities including serving on committees.
9
ENEGEX LIMITED
ABN 28 160 818 986
Remuneration Report (continued)
The directors do not receive employee benefits, including annual leave and long service leave,
but remuneration may include the grant of options (share based payments) over shares of the
company so as to align directors’ interests with that of the shareholders.
There is no direct relationship between remuneration of directors and the company’s performance
since incorporation.
Components of directors’ compensation are disclosed below.
Short Term
Year Director
s
Fees
$
-
-
-
-
-
RL Clark
EG Albers 2019
2018
2019
2018
2019
AP
Armitage
TOTAL
2018
2019
2018
-
-
-
Other
Fees
$
-
-
-
-
-
-
-
-
Post
Employment
Super
annuation
$
-
-
-
-
-
-
-
-
Total
Equity
Settled
Options
$
-
-
-
-
-
-
-
-
$
-
-
-
-
-
-
-
-
Options as
percentage
of Total
-
-
-
-
-
-
-
-
There were no shares or options issues to directors as part of compensation during the year ended 30
June 2019.
Directors’ interests in shares
The number of shares in the company held during by each director, including their related parties,
is set out below:
Directors
Held at
1 July 2018
Net
Change
Other
Held
At 30 June
2019
EG Albers
RL Clark
AP Armitage
32,904,849
75,000
-
_________
_
32,979,849
=========
-
-
-
__________
32,904,849
75,000
-
__________
-
=========
32,979,849
=========
End of Remuneration Report
10
ENEGEX LIMITED
ABN 28 160 818 986
INDEMNIFICATION OF OFFICERS AND AUDITORS
During the financial year and to the date of this report, the company did not pay premiums in respect
of contracts insuring officers or auditors of the company against liabilities arising from their position
of officers or auditor of the company.
ENVIRONMENT, HEALTH AND SAFETY
The company has adopted an environmental, health and safety policy and conducts its operations in
accordance with industry best practice.
There were no known contraventions of any relevant environmental regulations by the company, its
subsidiary or by the operator of any of the permits in which an interest is held.
The company believes all injuries are avoidable and has policies and procedures to ensure
employees and contractors manage safety accordingly. The company monitors and evaluates its
procedures. During the year there were no known contraventions of health and safety by the
company or reported health and safety incidents.
CORPORATE GOVERNANCE STATEMENT
A corporate governance statement reporting on Enegex’s governance framework, principles and
practices is provided on the Enegex website www.enegex.com.au.
WEBSITE
The company has a website that can be found at www.enegex.com.au where relevant company
documents and information are displayed.
EVENTS SINCE BALANCE DATE
There has been no significant after balance date event up to the date of signing this report.
PROCEEDINGS ON BEHALF OF THE COMPANY
There are no proceedings on behalf of the company.
11
ENEGEX LIMITED
ABN 28 160 818 986
AUDITOR INDEPENDENCE AND NON-AUDIT SERVICES
A copy of the Auditor’s Independence Declaration, as required under Section 307C of the
Corporations Act 2001, is attached on page 33 and forms part of this Directors’ Report for the
year ended 30 June 2019.
No fees were paid to the auditor for non-audit services.
Signed in accordance with a resolution of the directors.
R.L. Clark
Director
Melbourne, 25 September 2019
12
ENEGEX LIMITED
ABN 28 160 818 986
DIRECTORS’ DECLARATION
The directors of the company declare that:
1.
The financial statements, comprising the statement of profit or loss and other comprehensive
income, statement of financial position, statement of cash flows, statement of changes in
equity, and accompanying notes, are in accordance with the Corporations Act 2001 and
(a)
(b)
(c)
comply with Accounting Standards and the Corporations Regulations 2001;
give a true and fair view of the company’s financial position as at 30 June 2019 and
of its performance for the year ended on that date; and
the financial statements and notes also comply with International Financial
Reporting Standards as disclosed in Note 1(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.
The remuneration disclosures included in pages 9 to 10 of the Directors’ Report, (as part of
the audited Remuneration Report), for the year ended 30 June 2019, comply with section
300A of the Corporations Act 2001.
The directors have been given the declarations by the executive officer and the financial
officer required by section 295A of the Corporations Act.
2.
3.
4.
This declaration is made in accordance with a resolution of the Board of Directors and is signed
for and on behalf of the directors by:
R.L. Clark
Director
Melbourne, 25 September 2019
13
ENEGEX LIMITED
ABN 28 160 818 986
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2019
Interest income
Expenses
Loss before income tax expense
Income tax expense
Loss for the year
Items that will not be reclassified subsequently to profit or
loss
Changes in financial assets at fair value through other
comprehensive income
Total comprehensive income for the year
Basic loss per share (cent per share)
Diluted loss per share (cent per share)
NOTE
2019
$
2018
$
2
3
17
17
3,433
(310,512)
________
(307,079)
-
________
(307,079)
________
4,626
(88,129)
________
(83,503)
-
________
(83,503)
________
(3,370)
________
(310,449)
________
4,814
________
(78,689)
________
cents
cents
(0.381)
(0.104)
(0.381)
(0.104)
The above Statement of Profit or Loss and Other Comprehensive Income is to be read in conjunction with the
accompanying notes.
14
ENEGEX LIMITED
ABN 28 160 818 986
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AT 30 JUNE 2019
CURRENT ASSETS
Cash and cash equivalents
Trade and other receivables
Prepayments
TOTAL CURRENT ASSETS
NON-CURRENT ASSETS
Financial assets at fair value through
other comprehensive income
Available-for-sale financial assets
Exploration and evaluation assets
TOTAL NON-CURRENT ASSETS
TOTAL ASSETS
CURRENT LIABILITIES
Trade and other payables
TOTAL LIABILITIES
NET ASSETS
EQUITY
Issued capital
Reserves
Accumulated losses
TOTAL EQUITY
NOTE
4
5
6
7
8
9
10
2019
$
139,914
2,809
30,056
________
172,779
________
24,548
-
-
________
24,548
________
197,327
________
2018
$
287,052
2,561
-
________
289,613
________
-
27,917
185,249
________
213,166
________
502,779
________
38,877
________
33,880
________
38,877
________
33,880
________
158,450
========
468,899
========
1,366,891
3,414
(1,211,855)
________
1,366,891
6,784
(904,776)
________
158,450
========
468,899
========
The above Statement of Financial Position is to be read in conjunction with the accompanying notes.
15
ENEGEX LIMITED
ABN 28 160 818 986
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2019
Issued
capital
Accumulated
losses
$
$
Financial
assets at fair
value through
other
comprehensive
income
$
Total
Equity
$
At 1 July 2018
Loss for the year
Revaluation of financial asset (net of
tax)
Total comprehensive income for
the year
1,366,891
( 904,776)
6,784
468,899
-
-
-
( 307,079)
-
( 307,079)
-
(3,370)
(3,370)
( 307,079)
(3,370)
( 307,079)
At 30 June 2019
1,366,891
(1,211,855)
3,414
158,450
At 1 July 2017
Loss for the year
Revaluation of financial asset (net of
tax)
Total comprehensive income for
the year
1,366,891
( 821,273)
1,970
547,588
-
-
-
( 83,503)
-
( 83,503)
-
4,814
4,814
( 83,503)
4,814
( 78,689)
At 30 June 2018
1,366,891
(904,776)
6,784
468,899
The above Statement of Changes in Equity is to be read in conjunction with the accompanying notes.
16
ENEGEX LIMITED
ABN 28 160 818 986
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2019
CASH FLOWS FROM OPERATING ACTIVITIES
Payments to suppliers
Interest received
Net cash outflow in operating activities
CASH FLOWS FROM INVESTING ACTIVITIES
Payments to suppliers - exploration
Net cash outflow from investing activities
NOTE
2019
$
2018
$
(99,256)
4,060
________
(84,882)
3,599
________
(i)
(95,196)
________
(81,283)
________
(51,942)
(63,329)
________
________
(51,942)
______
(63,329)
______
Net decrease in cash and cash equivalents
Cash and cash equivalents at the beginning of the year
CASH AND CASH EQUIVALENTS AT YEAR END
4
(147,138)
287,052
________
139,914
=======
(i) RECONCILIATION OF LOSS TO NET CASH OUTFLOW IN OPERATING ACTIVITIES
Loss after income tax
Exploration expensed
Impairment of asset
Changes in Assets and Liabilities:
Decrease in payables
Decrease in receivables
Net cash outflow from operating activities
(307,079)
5,315
201,820
4,997
(249)
________
(95,196)
=======
(144,612)
431,664
________
287,052
=======
(83,503)
-
-
1,023
1,197
________
(81,283)
=======
The above Statement of Cash Flows is to be read in conjunction with the accompanying notes.
17
ENEGEX LIMITED
ABN 28 160 818 986
NOTES TO THE FINANCIAL STATEMENTS
30 JUNE 2019
NOTE 1 SIGNIFICANT ACCOUNTING POLICIES
Enegex Limited (“Enegex” or “the company” or “the group”) is a for-profit company incorporated and domiciled in
Australia with its registered office and principal place of business located at Level 21, 500 Collins Street, Melbourne,
Victoria 3000. The consolidated financial report of the company for the year ended 30 June 2019 comprises the
company and its subsidiaries (together referred to as the “consolidated entity” or “the group”) and the consolidated
entity’s interest in joint operations. Financial information for Enegex Limited as an individual entity is included in
Note 20. The financial report was authorised by the directors for issue on 25 September 2019. The principal activity of
the company during the year was natural resources exploration, evaluation and investment.
(a) Statement of compliance
The consolidated financial report is a general purpose financial report which has been prepared in accordance with
Australian Accounting Standards, including the Accounting Interpretations, issued by the Australian Accounting
Standards Board (‘AASB’) and the Corporations Act 2001. The financial report of the company complies with
International Financial Reporting Standards and interpretations adopted by the International Accounting Standards
Board.
(b) Basis of preparation
The consolidated financial report is presented in Australian dollars which is the company’s functional currency and is
prepared on the accrual and historical cost basis. The preparation of a financial report in conformity with Australian
Accounting Standards requires management to make judgements, estimates and assumptions that affect the
application of policies and reported amounts of assets and liabilities, income and expenses. The estimates and
associated assumptions are based on historical experience and various other factors that are believed to be reasonable
under the circumstances, the results of which form the basis of making the judgements about carrying values of assets
and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are
recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the
revision and future periods if the revision affects both current and future periods.
Judgements made by management in the application of Australian Accounting Standards that have a significant effect
on the financial report and estimates with a significant risk of material adjustment in the next year are discussed in
note 1(m).
The accounting policies set out below have been applied consistently to all periods presented in the financial report.
New and revised accounting standards applicable for the first time to the current reporting period
The company has adopted all new and revised Australian Accounting Standards and Interpretations that became
effective for the first time and are relevant to the company.
The adoption of the new and revised Australian Accounting Standards and Interpretations, including AASB 15
Revenue from Contracts with Customers, has had no impact on the company’s accounting policies or the amounts
reported during the current year.
AASB 9 Financial Instruments
AASB 9 Financial Instruments replaces AASB 139 Financial Instruments: Recognition and Measurement
requirements. It makes major changes to the previous guidance on the classification and measurement of financial
assets and introduces an ‘expected credit loss’ model for impairment of financial assets.
The Group has assessed the classification and measurement of the Group’s financial liabilities and financial assets.
When adopting AASB 9, the Group has applied transitional relief and elected not to restate prior periods. Rather,
differences arising from the adoption of AASB 9 in relation to classification, measurement, and impairment are
recognised in opening retained earnings as at 1 July 2018.
18
ENEGEX LIMITED
ABN 28 160 818 986
NOTES TO THE FINANCIAL STATEMENTS
30 JUNE 2019
NOTE 1 SIGNIFICANT ACCOUNTING POLICIES (continued)
The table below outlines the accounting treatment for financial assets and financial liabilities under AASB 139 as
compared to AASB 9
Financial instrument
Previous
AASB 139
Amortised cost
Trade and other payables
Derivative financial instruments Fair value through profit or loss
Current
AASB 9
Amortised cost
Fair value through profit or loss
The Group’s other receivables do not meet the definition of a financial asset as they include GST receivable and
prepayments. As a result, Group management is satisfied that there is no impact from the transition from AASB139 to
AASB9.
Impairment of financial assets
AASB 9’s new impairment model use more forward looking information to recognize expected credit losses - the
‘expected credit losses (ECL) model’. The application of the new impairment model depends on whether there has
been a significant increase in credit risk.
The Group considers a broader range of information when assessing credit risk and measuring expected credit losses,
including past events, current conditions, reasonable and supportable forecasts that affect the expected collectability of
the future cash flows of the instrument.
(c) Exploration and evaluation expenditure
Exploration and evaluation assets, including the costs of acquiring permits or licences, are capitalised as exploration
and evaluation assets on an area of interest basis. Exploration and evaluation assets are only recognised if the rights to
tenure of the area of interest are current and either:
i.
ii.
the expenditures are expected to be recouped through successful development and exploitation of the area of
interest, or alternatively, by its sale or partial sale: or
activities in the area of interest have not at the reporting date, reached a stage which permits a reasonable
assessment of the existence or otherwise of economically recoverable reserves and active and significant
operations in, or in relation to, the area of interest are continuing.
The tests contained in AASB6.20 are applied to determine whether exploration and evaluation assets are assessed for
impairment:
1)
the exploration and evaluation tenure right has expired or are expected to expire in the near future, and is not
expected to be renewed.
2) substantive expenditure on further exploration for and evaluation of mineral resources in the specific area is
neither budgeted nor planned.
3) exploration for and evaluation of mineral resources in the specific area have not led to the discovery of
commercially viable quantities of mineral resources and the entity has decided to discontinue such activities in
the specific area.
4) sufficient data exist to indicate that, although a development in the specific area is likely to proceed, the carrying
amount of the exploration and evaluation asset is unlikely to be recovered in full from successful development or
by sale.
Proceeds from the sale of exploration permits or recoupment of exploration costs from farmin arrangements are
credited against exploration costs previously capitalised. Any excess of the proceeds overs costs recouped are
accounted for as a gain on disposal.
Restoration, rehabilitation and environmental costs necessitated by exploration and evaluation activities are provided
for as part of the cost of those activities. Costs are estimated on the basis of current legal requirements, anticipated
technology and future costs that have been discounted to their present value. Estimates of future costs are reassessed
at each reporting date.
19
ENEGEX LIMITED
ABN 28 160 818 986
NOTES TO THE FINANCIAL STATEMENTS
30 JUNE 2019
NOTE 1 SIGNIFICANT ACCOUNTING POLICIES (continued)
(d) (i)Trade and other receivables (relates to period ending 30 June 2018 and earlier)
Trade receivables are recognised at original invoice amounts less an allowance for uncollectible amounts and have
repayment terms between 30 and 90 days. Collectability of trade receivables is assessed on an ongoing basis. Debts
which are known to be uncollectible are written off. An allowance is made for doubtful debts where there is objective
evidence (such as significant financial difficulties on the part of the counterparty or default or significant delay in
payment) that the company will not be able to collect all amounts due according to the original terms.
(d) (ii) Trade and other receivables and contract assets (relates to period beginning 1 July 2018)
The company makes uses of a simplified approach in accounting for trade and other receivables as well as contract
assets and records the loss allowance as lifetime expected credit losses. These are the expected shortfalls in
contractual cash flows, considering the potential for default at any point during the life of the financial instrument. In
calculating, the company uses its historical experience, external indicators and forward-looking information to
calculate the expected credit losses using a provision matrix.
(e) Cash and cash equivalents
Cash and cash equivalents comprise cash balances and at call bank deposits. Bank overdrafts that are repayable on
demand and form an integral part of the company’s cash management are included as a component of cash and cash
equivalents for the purpose of the statement of cash flows.
(f) Impairment of assets
The carrying amounts of the company’s assets are reviewed at each statement of financial position date to determine
whether there are indicators of impairment. At each reporting date the company assesses whether there is any
indication that individual assets are impaired. Where impairment indicators exist, recoverable amount is determined
and impairment losses are recognised in profit or loss where the asset's carrying value exceeds its recoverable amount.
Recoverable amount is the higher of an asset's fair value less costs to sell and value in use. For the purpose of
assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount
rate that reflects current market assessments of the time value of money and the risks specific to the asset.
Where it is not possible to estimate recoverable amount for an individual asset, recoverable amount is determined for
the cash-generating unit to which the asset belongs.
(g) Share capital
Ordinary share capital is recognised at the fair value of the consideration received by the company. Transaction costs
arising on the issue of ordinary shares are recognised directly in equity as a reduction of the consideration received,
net of any related income tax benefit.
(h) Provisions
A provision is recognised in the statement of financial position when the company has a present legal or constructive
obligation as a result of a past event, and it is probable that an outflow of economic benefits will be required to settle
the obligation. Provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects
current market assessments of the time value of money and, where appropriate, the risks specific to the liability.
(i) Trade and other payables
Trade, accruals and other payables are recorded initially at fair value and subsequently at amortised cost. Trade
payables are non-interest bearing and are normally settled on 60-day terms.
(j) Revenue
Revenue is recognised at the fair value of consideration received or receivable. Amounts disclosed as revenue are net
of returns, trade allowances and duties and taxes paid. The following specific recognition criteria must also be met
before revenue is recognised
20
ENEGEX LIMITED
ABN 28 160 818 986
NOTES TO THE FINANCIAL STATEMENTS
30 JUNE 2019
NOTE 1 SIGNIFICANT ACCOUNTING POLICIES (continued)
(k) Income tax
Income tax on the profit or loss for the year comprises current and deferred tax. Income tax is recognised in profit or
loss except to the extent that it relates to items recognised directly in equity, in which case it is recognised in equity.
Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted or substantively
enacted at the statement of financial position date, and any adjustment to tax payable in respect of previous years.
Deferred tax is provided using the statement of financial position liability method, providing for temporary differences
between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for
taxation purposes.
The initial recognition of assets or liabilities that do not affect accounting nor taxable profit is not provided for in
determining deferred tax amounts. The amount of deferred tax provided is based on the expected manner of
realisation or settlement of the carrying amount of assets and liabilities, using tax rates enacted or substantively
enacted at the statement of financial position date. A deferred tax asset is recognised only to the extent that it is
probable that future taxable profits will be available against which the asset can be applied. Deferred tax assets are
reduced to the extent that it is no longer probable that the related tax benefit will be realised.
The Company recognises deferred tax assets arising from unused tax losses of the company to the extent that is
probable that future taxable profits of the company will be available against which the asset can be utilised.
(l) Goods and services tax
Revenue, expenses and assets are recognised net of the amount of goods and services tax (GST), except where the
amount of GST incurred is not recoverable from the taxation authority. In these circumstances, the GST is recognised
as part of the cost of acquisition of the asset or as part of the expense.
Receivables and payables are stated with the amount of GST included. The net amount of GST recoverable from, or
payable to, the ATO is included as a current asset or liability in the statement of financial position.
Cash flows are included in the statement of cash flows on a gross basis. The GST components of cash flows arising
from investing and financing activities which are recoverable from, or payable to, the ATO are classified as operating
cash flows. Commitments and contingencies are disclosed net of the amount of GST recoverable from, or payable to,
the taxation authority.
(m) Accounting estimates and judgements
Management determine the development, selection and disclosure of the company’s critical accounting policies and
estimates and the application of these policies and estimates. Other than as disclosed in these notes there are no
estimates and judgements that are considered to have a significant risk of causing a material adjustment to the carrying
amounts of assets and liabilities within the next financial year.
Work requirements achieved by farm-ins materially reduce the level of expenditure incurred by the company to
comply with work program commitments.
Management has determined that realisation of the estimated deferred tax asset arising from tax losses and temporary
differences is not probable and has not brought to account the asset at balance date (Note 3).
21
ENEGEX LIMITED
ABN 28 160 818 986
NOTES TO THE FINANCIAL STATEMENTS
30 JUNE 2019
NOTE 1 SIGNIFICANT ACCOUNTING POLICIES (continued)
(m) Accounting estimates and judgements (continued)
Per Note 1(c) and 1(f) management exercise judgement as to the recoverability of exploration expenditure. Any
judgement may change as new information becomes available. If, after having capitalised exploration and evaluation
expenditure, management concludes that the capitalised expenditure is unlikely to be recovered by future sale or
exploitation, then the relevant capitalised amount will be written off through profit or loss and other comprehensive
income.
(n) Joint Operations
Interest in joint operations is brought to account, by including in the respective classifications, the company’s share of
individual assets employed, liabilities, income and expenses incurred. Where the company is acquiring or disposing
of a joint operation interest the company’s share of joint operation assets is based on the contributions made to the
joint operation.
(o) Fair value
Fair values may be used for financial asset and liability measurement as well as for sundry disclosures. Fair values for
financial instruments traded in active markets are based on quoted market prices at statement of financial position
date. The quoted market price for financial assets is the current bid price and the quoted market price.
The fair value of financial instruments that are not traded in an active market are determined using valuation
techniques. Assumptions used are based on observable market prices and rates at balance date. Estimated discounted
cash flows are used to determine fair value of the remaining financial instruments.
The carrying value (less impairment provision of trade receivables and payables) are assumed to approximate their
fair values due to their short-term nature. The fair value of financial liabilities for disclosure purposes is estimated by
discounting the future contractual cash flows at the current market interest rate that is available to the company for
similar financial instruments
(p) Foreign Currency Translation
The functional and presentation currency of the company is Australian dollars (A$).
Foreign currency transactions are translated into the functional currency using the exchange rates ruling at the date of
the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated at the rate of
exchange ruling at the statement of financial position date. Foreign exchange gains and losses resulting from settling
foreign currency transactions, as well as from restating foreign currency denominated monetary assets and liabilities,
are recognised in profit or loss, except when they are deferred in equity as qualifying cash flow hedges or where they
relate to differences on foreign currency borrowings that provide a hedge against a net investment in a foreign entity.
Non-monetary items measured at fair value in a foreign currency are translated using the exchange rates at the date
when fair value was determined.
22
ENEGEX LIMITED
ABN 28 160 818 986
NOTES TO THE FINANCIAL STATEMENTS
30 JUNE 2019
NOTE 1 SIGNIFICANT ACCOUNTING POLICIES (continued)
(q) Earnings per Share
Basic earnings per share
Basic earnings per share is calculated by dividing the profit attributable to members of Enegex, adjusted for the after-
tax effect of preference dividends on preference shares, if any, classified as equity, by the weighted average number of
ordinary shares outstanding during the financial year, adjusted for bonus elements in ordinary shares during the year.
Diluted earnings per share
Earnings used to calculate diluted earnings per share are calculated by adjusting the basic earnings by the after-tax
effect of dividends and interest associated with dilutive potential ordinary shares. The weighted average number of
shares used is adjusted for the weighted average number of ordinary shares that would be issued on the conversion of
all the dilutive potential ordinary shares into ordinary shares.
(r) New and revised accounting standards issued not yet effective
The company has adopted all of the new and revised Accounting Standards issued by the Australian Accounting
Standards Board (AASB) that are relevant to its operations and effective for annual reporting periods beginning on 1
July 2018.
The Directors do not believe that new and revised standards issued by AASB (that are not as yet effective, will have
any material financial impact on the financial statements, including AASB 16 Leases, which does not apply to leases
to explore for or use minerals, oil, natural gas and similar non-regenerative resources
23
ENEGEX LIMITED
ABN 28 160 818 986
NOTES TO THE FINANCIAL STATEMENTS
30 JUNE 2019
NOTE 2 EXPENSES
Audit and other related fees
Consultants fees
Impairment of exploration asset
Office costs
Stock exchange and registry costs
Other expenses
NOTE
8
2019
$
26,650
1,603
201,820
22,717
20,878
36,844
2018
$
25,052
733
-
25,550
20,113
16,681
________
________
310,512
=======
88,129
=======
NOTE 3 INCOME TAX BENEFIT
Components of income tax benefit
Current tax benefit
Deferred tax asset not brought to account
Income tax benefit
Reconciliation between tax benefit and pre-tax loss
Loss before tax
Income tax using statutory income tax rate of 30% (2018:
30%)
Tax benefit
Deferred tax asset not brought to account
Income tax benefit
Unrecognised deferred tax asset
The estimated deferred tax asset arising from tax losses and temporary differences
not brought to account at balance date as realisation of the benefit is not probable:
Tax losses carried forward
Temporary differences
NOTE 4 CASH AND CASH EQUIVALENTS
Cash at bank and on hand
(92,194)
92,194
________
-
=======
(307,079)
=======
(92,124)
_______
(92,124)
92,124
________
-
=======
1,268,715
11,221
________
1,279,936
=======
(25,051)
25,051
________
-
=======
(83,503)
=======
(25,051)
_______
(25,051)
25,051
________
-
=======
1,104,913
(175,524)
________
929,389
=======
139,914
________
139,914
=======
287,052
________
287,052
=======
24
ENEGEX LIMITED
ABN 28 160 818 986
NOTES TO THE FINANCIAL STATEMENTS
30 JUNE 2019
2019
$
2018
$
NOTE 5 TRADE & OTHER RECEIVABLES
Other receivables
The carrying amount of all receivables is equal to their fair value as they are short term.
None of the receivables have a loss allowance as there aren’t any expected shortfalls in
contractual cash flows. The maximum credit risk for the company is the gross value of all
receivables. All receivables are non-interest bearing.
NOTE 6 PREPAYMENTS
Prepaid tenement rent
2,809
2,561
________ ________
2,561
======= =======
2,809
30,056
-
________ ________
-
======= =======
30,056
The company applied for exploration tenements E80/5354 and E80/5355 in May 2019. If the
tenements are granted rent paid on application will cover rent required on the first year of
exploration in both tenements. As at 30 June 2019 and to the date of signing the report the
tenements have not been granted. If the tenements are not granted the rent paid on application is
fully refundable.
NOTE 7 FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER
COMPREHENSIVE INCOME
Investments in listed equities
Balance at beginning of year
Net revaluation increment
Balance at end of year
NOTE 8 EXPLORATION AND EVALUATION ASSETS
Balance at beginning of year
Expenditure for the year
Impairment of asset (1)
Balance at end of year
(1)The retention lease WA-54-R expired 3 May 2019 as was held through joint
operations and details of interests held in the permits can be found in Note 11.
NOTE 9 TRADE AND OTHER PAYABLES
Other payables and accrued expenses
Director-related entities – other payables (Note 13)
27,917
(3,369)
________
23,104
4,813
_______
27,917
24,548
======= =======
121,920
185,249
63,329
16,571
(201,820)
-
________ ________
185,249
======= =======
-
19,344
19,533
17,981
15,899
________ ________
33,880
======= =======
38,877
Trade payables are current liabilities which result in their fair value being equal to the current carrying
amount. Information about the company’s exposure to foreign exchange risk in relation to other trade
payables and accrued expenses, including sensitivities to changes in foreign exchange rates, is provided in
Note 15.
25
ENEGEX LIMITED
ABN 28 160 818 986
NOTES TO THE FINANCIAL STATEMENTS
30 JUNE 2019
NOTE 10 ISSUED CAPITAL
Issued Capital
Ordinary shares fully paid
Ordinary Shares
Movements during the year
Balance at beginning of year
Shares issued: costs of issue
Balance at end of year
2019
Shares
80,499,737
2019
$
1,366,891
2019
Shares
80,499,737
2018
$
1,366,891
80,499,737
-
80,499,737
1,366,891
-
1,366,891
80,499,737
-
80,499,737
1,366,891
-
1,366,891
Ordinary Shares
Ordinary shares entitle the holder to receive dividends as declared 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. The company does not have a limited authorised capital and issued shares have no par value.
Share Options
No options were on issue during the year and to the date of this report.
NOTE 11 INTEREST IN JOINT OPERATIONS
The company has an interest in the assets, liabilities and output of joint operations for the exploration and
development of petroleum in Australia. The company has taken up its share of joint operations transactions based on
the company’s contributions to the joint operations. Expenditure commitments in respect of the joint operations are
disclosed in Note 14. Details of the company’s interests in the joint operations are:
WA-54-R
Interest
30/6/2019
Nil
Interest
Acquired
(Disposed)
(14.875%)
Interest
30/6/2018
14.875%
Assets and liabilities of the joint operations are included in the financial statements as follows:
2018
$
2019
$
CURRENT ASSETS
Cash and cash equivalents
Trade and other receivables
TOTAL CURRENT ASSETS
NON-CURRENT ASSETS
Exploration costs
TOTAL ASSETS
CURRENT LIABILITIES
Trade and other payables – director related
TOTAL LIABILITIES
There are no contingent liabilities in any of the joint operations.
4,670
1,117
5,787
-
5,787
4,768
4,768
3,551
390
3,941
185,249
189,190
7,910
7,910
26
ENEGEX LIMITED
ABN 28 160 818 986
NOTES TO THE FINANCIAL STATEMENTS
30 JUNE 2019
NOTE 12 KEY MANAGEMENT PERSONNEL
Non-executive Directors
EG Albers
AP Armitage
Executive Director
RL Clark
During the year the only persons that met the definition of key management personnel were the directors. The
company has no employees.
Fees paid to PA Armitage, EG Albers and RL Clark in their capacities as consultants or service providers to Enegex are
disclosed below in the Related Party Note 13. Fees paid to directors are summarised in the table below and detailed in
the Remuneration Report section of the Directors’ Report.
Individual compensation disclosures
Information regarding individual director’s compensation is provided in the Remuneration Report section of the
Directors’ Report. In summary form:
Short Term
Year
2019
2018
Directors
Fees
$
-
-
Other Fees
$
-
-
Post
Employment
Super-
annuation
$
-
-
Equity Settled
Total
Options
$
-
-
$
-
-
TOTAL
NOTE 13 RELATED PARTY TRANSACTIONS
The consolidated financial statements of the Group include:
Name
Ellendale South Pty Ltd
Diamandia Pty Ltd
2019
Interest
100%
100%
2018
Interest
Nil
Nil
of
Country
Incorporation
Australia
Australia
Both Ellendale South Pty Ltd and Diamandia Pty Ltd were acquired for $100 on 5 April 2019. They were shelf
companies with no assets or liabilities at the date of acquisition.
During the year services were provided under normal commercial terms and conditions by director-related entities
as disclosed below together with amounts payable as at 30 June including in relation to joint operations*.
Entity
Samika Pty Ltd
Exoil Pty Ltd
Natural Resources
Group Pty Ltd
Octanex Limited
Service
Related
director
RL Clark
EG Albers Office services
EG Albers Management of exploration
Consulting services
Amounts paid
2019
$
2,480
24,970
744
2018
$
2,957
27,570
2,975
Payable at
30/06/19
$
1,215
7,069
744
30/06/18
$
182
7,287
3,272
tenements
EG Albers Accounting and administrative
21,755
11,218
10,505
5,158
support
49,949
44,720
19,533
15,899
* As a participant of the Cornea Joint Venture Enegex holds an interest in a petroleum joint venture with director-
related entities: Cornea Petroleum Pty Ltd, Cornea Oil & Gas Pty Ltd, Coldron Pty Ltd, Octanex Cornea Pty Ltd,
Moby Oil & Gas Pty Ltd, Octanex Limited, Cornea Resources Pty Ltd and Auralandia Pty Ltd, all director-related
entities of EG Albers.
27
ENEGEX LIMITED
ABN 28 160 818 986
NOTES TO THE FINANCIAL STATEMENTS
30 JUNE 2019
NOTE 14 EXPLORATION AND EVALUATION PERMIT COMMITMENTS
Estimated expenditure to satisfy contractual and permit work obligations:
Not later than 1 year - WA-54-R
Later than 1 year but not later than 3 years – WA-54-R
WA-54-R expired 5 May 2019.
NOTE 15 FINANCIAL INSTRUMENTS
2019
$
2018
$
-
-
74,375
-
Purchases and sales of financial assets and financial liabilities are recognised on trade date; the date on which the
company commits to purchase or sell the financial assets or financial liabilities. Financial assets are derecognised
when the rights to receive cash flows from the financial assets have expired or have been transferred and the company
has transferred substantially all the risks and rewards of ownership.
Exposure to credit, interest rate, liquidity and currency risks arises in the normal course of the company’s business.
The company’s overall risk management approach is to identify the risks and implement safeguards which seek to
minimise potential adverse effects on the financial performance of the company.
Credit risk
Credit risk is the risk of financial loss to the company if a customer or counterparty to a financial instrument fails to
meet its contractual obligations. At balance date there were no significant concentrations of credit risk for the
company. The maximum exposure to credit risk of financial assets is represented by the carrying amounts of each
financial asset in the statement of financial position.
Interest rate risk
All financial liabilities and financial assets at floating rates expose the company to cash flow interest rate risk. The
company has no exposure to interest rate risk at balance date, other than in relation to cash and cash equivalents which
attract a floating interest rate. Details of cash and cash deposits can be found in Note 4. At balance date a 1% (100
basis point) increase/ decrease in the interest rate would improve / worsen the company’s post tax profit by $979
(2018: $2,009)
Liquidity risk
Liquidity risk is monitored to ensure sufficient monies are available to meet contractual obligations as and when they
fall due. All financial assets and liabilities have a maturity date of less than 12 months.
Capital Management
When managing capital, directors’ objective is to ensure the entity continues as a going concern as well as to maintain
optimal returns to shareholders and benefits for other stakeholders.
It is the company’s plan that capital will be raised by any one or a combination of the following manners: placement
of shares to excluded offerees, pro-rata issue to shareholders, the exercise of outstanding options, and/or a further
issue of shares. Should these methods not be considered to be viable, or in the best interests of shareholders, then it
would be the company’s intention to meet its exploration obligations by either partial sale of its interests or farmout,
the latter course of action being part of its overall strategy.
The company is not subject to any externally imposed capital requirements.
28
ENEGEX LIMITED
ABN 28 160 818 986
NOTES TO THE FINANCIAL STATEMENTS
30 JUNE 2019
NOTE 16 SEGMENT INFORMATION
The company has adopted AASB 8 Operating Segments whereby segment information is presented using a
'management approach', i.e. segment information is provided on the same basis as information used for internal
reporting purposes by the board of directors
At regular intervals the board is provided management information at a company level for the company’s cash
position, the carrying values of exploration permits and a company cash forecast for the next twelve months of
operation.
On this basis, no segment information is included in these financial statements.
All interest received has been derived in Australia. All exploration and evaluation assets are held in Australia.
NOTE 17 LOSS PER SHARE
The loss and weighted average number of ordinary shares used in the calculation of basic and dilutive loss per share
is as follows::
Net Loss for the year
The weighted average number of ordinary shares
Total basic and dilutive loss per share (cents)
NOTE 18 AUDITOR’S REMUNERATION
Amounts received or due and receivable by the
auditor of the Company for:
Audit of the full year and review of the half year
financial reports
Other assurance services
2019
$
2018
$
(307,079)
80,499,737
__________
(0.381)
__________
(83,503)
80,499,737
_________
(0.104)
___________
26,650
-
______
26,650
======
25,052
-
______
25,052
======
NOTE 19 EVENTS SINCE BALANCE DATE
There are no significant after balance date events up to the signing of this report.
29
ENEGEX LIMITED
ABN 28 160 818 986
NOTES TO THE FINANCIAL STATEMENTS
30 JUNE 2019
NOTE 20 PARENT ENTITY INFORMATION
The following details information related to the parent entity, Enegex Limited at 30 June 2019. The information
presented here has been prepared using consistent accounting policies as presented in Note 1, except for the use of the
cost method for investment in subsidiary companies by the parent.
2019
$
2018
$
Current assets
Non-current assets
Total assets
Current liabilities
Non-current liabilities
Total liabilities
Contributed equity
Financial assets at fair value through other comprehensive income
reserve
Accumulated losses
Total equity
Loss for the year
Other comprehensive income for the year
Total comprehensive income for the year
No dividends were paid by the parent entity in 2019 (2018: Nil).
142,723
59,987
202,710
38,544
-
38,544
1,366,891
3,414
(1,206,139)
164,166
(301,363)
(3,370)
(304,733)
289,613
213,166
502,779
33,880
-
33,880
1,366,891
6,784
(904,776)
468,899
(83,503)
4,814
(78,689)
The company’s share of minimum work requirements contracted for under exploration permit interests held in joint
operation is estimated at reporting date:
Payable not later than one year
74,375
Payable later than one year but not later than three years
-
-
-
74,375
-
30
Independent Auditor’s Report
To the Members of Enegex Limited
Report on the audit of the financial report
Opinion
Collins Square, Tower 5
727 Collins Street
Melbourne Victoria 3008
Correspondence to:
GPO Box 4736
Melbourne Victoria 3001
T 61 3 8320 2222
F 61 3 8320 2200
E info.vic@au.gt.com
W www.grantthornton.com.au
We have audited the financial report of Enegex Limited (the Company) and its subsidiaries (the Group), which comprises
the consolidated statement of financial position as at 30 June 2019, the consolidated statement of profit or loss and other
comprehensive income, consolidated statement of changes in equity and consolidated statement of cash flows for the
year then ended, and notes to the consolidated financial statements, including a summary of significant accounting
policies, and the Directors’ declaration.
In our opinion, the accompanying financial report of the Group is in accordance with the Corporations Act 2001, including:
a giving a true and fair view of the Group’s financial position as at 30 June 2019 and of its performance for the year
ended on that date; and
b complying with Australian Accounting Standards and the Corporations Regulations 2001.
Basis for opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those standards are
further described in the Auditor’s Responsibilities for the Audit of the Financial Report section of our report. We are
independent of the Group in accordance with the auditor independence requirements of the Corporations Act 2001 and
the ethical requirements of the Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for
Professional Accountants (the Code) that are relevant to our audit of the financial report in Australia. We have also fulfilled
our other ethical responsibilities in accordance with the Code.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial
report of the current period. For the period ended 30 June 2019 we have determined that there are no key audit matters to
communicate in our report.
Information other than the financial report and auditor’s report thereon
The Directors are responsible for the other information. The other information comprises the information included in the
Group’s annual report for the year ended 30 June 2019, but does not include the financial report and our auditor’s report
thereon.
Our opinion on the financial report does not cover the other information and we do not express any form of assurance
conclusion thereon.
Grant Thornton Audit Pty Ltd ACN 130 913 594
a subsidiary or related entity of Grant Thornton Australia Ltd ABN 41 127 556 389
www.grantthornton.com.au
‘Grant Thornton’ refers to the brand under which the Grant Thornton member firms provide assurance, tax and advisory services to their clients
and/or refers to one or more member firms, as the context requires. Grant Thornton Australia Ltd is a member firm of Grant Thornton International
Ltd (GTIL). GTIL and the member firms are not a worldwide partnership. GTIL and each member firm is a separate legal entity. Services are
delivered by the member firms. GTIL does not provide services to clients. GTIL and its member firms are not agents of, and do not obligate one
another and are not liable for one another’s acts or omissions. In the Australian context only, the use of the term ‘Grant Thornton’ may refer to
Grant Thornton Australia Limited ABN 41 127 556 389 and its Australian subsidiaries and related entities. GTIL is not an Australian related entity to
Grant Thornton Australia Limited.
Liability limited by a scheme approved under Professional Standards Legislation.
In connection with our audit of the financial report, our responsibility is to read the other information and, in doing so, consider
whether the other information is materially inconsistent with the financial report or our knowledge obtained in the audit or
otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are
required to report that fact. We have nothing to report in this regard.
Responsibilities of the Directors’ for the financial report
The Directors of the Company are responsible for the preparation of the financial report that gives a true and fair view in
accordance with Australian Accounting Standards and the Corporations Act 2001 and for such internal control as the Directors
determine is necessary to enable the preparation of the financial report that gives a true and fair view and is free from material
misstatement, whether due to fraud or error.
In preparing the financial report, the Directors are responsible for assessing the Group’s ability to continue as a going concern,
disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the
Directors either intend to liquidate the Group or to cease operations, or have no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the financial report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from material
misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance
is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Australian Auditing
Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are
considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions
of users taken on the basis of this financial report.
A further description of our responsibilities for the audit of the financial report is located at the Auditing and Assurance
Standards Board website at: http://www.auasb.gov.au/auditors_responsibilities/ar1.pdf. This description forms part of our
auditor’s report.
Report on the remuneration report
Opinion on the remuneration report
We have audited the Remuneration Report included in pages 7 to 8 of the Directors’ report for the year ended 30 June
2019.
In our opinion, the Remuneration Report of Enegex Limited, for the year ended 30 June 2019 complies with section 300A
of the Corporations Act 2001.
Responsibilities
The Directors of the Company are responsible for the preparation and presentation of the Remuneration Report in accordance
with section 300A of the Corporations Act 2001. Our responsibility is to express an opinion on the Remuneration Report,
based on our audit conducted in accordance with Australian Auditing Standards.
Grant Thornton Audit Pty Ltd
Chartered Accountants
B L Taylor
Partner – Audit & Assurance
Melbourne, 25 September 2019
Collins Square, Tower 5
727 Collins Street
Melbourne VIC 3008
Correspondence to:
GPO Box 4736
Melbourne VIC 3001
T +61 3 8320 2222
F +61 3 8320 2200
E info.vic@au.gt.com
W www.grantthornton.com.au
Auditor’s Independence Declaration
To the Directors of Enegex Limited
In accordance with the requirements of section 307C of the Corporations Act 2001, as lead auditor for the audit of Enegex
Limited for the year ended 30 June 2019, I declare that, to the best of my knowledge and belief, there have been:
a
b
no contraventions of the auditor independence requirements of the Corporations Act 2001 in relation to the audit; and
no contraventions of any applicable code of professional conduct in relation to the audit.
Grant Thornton Audit Pty Ltd
Chartered Accountants
B L Taylor
Partner – Audit & Assurance
Melbourne, 25 September 2019
Grant Thornton Audit Pty Ltd ACN 130 913 594
a subsidiary or related entity of Grant Thornton Australia Ltd ABN 41 127 556 389
www.grantthornton.com.au
‘Grant Thornton’ refers to the brand under which the Grant Thornton member firms provide assurance, tax and advisory services to their clients
and/or refers to one or more member firms, as the context requires. Grant Thornton Australia Ltd is a member firm of Grant Thornton International
Ltd (GTIL). GTIL and the member firms are not a worldwide partnership. GTIL and each member firm is a separate legal entity. Services are
delivered by the member firms. GTIL does not provide services to clients. GTIL and its member firms are not agents of, and do not obligate one
another and are not liable for one another’s acts or omissions. In the Australian context only, the use of the term ‘Grant Thornton’ may refer to
Grant Thornton Australia Limited ABN 41 127 556 389 and its Australian subsidiaries and related entities. GTIL is not an Australian related entity to
Grant Thornton Australia Limited.
Liability limited by a scheme approved under Professional Standards Legislation.
ENEGEX LIMITED
ABN 28 160 818 986
Additional Information (unaudited)
As at 16 October 2019 Enegex holds the following interests in Mineral Tenements:
Western Australia (Kimberley Province)
E 80/5354 (100%)
E 80/5355 (100%)
Application
Application
Shareholder Information (compiled as at 16 October 2019)
DISTRIBUTION OF ORDINARY SHARES
Numbers of members by size of holding and the total number of shares on issue:
Ordinary Shares
1 – 1,000
1,001 – 5,000
5,001 – 10,000
10,001 – 100,000
100,001 and over
TOTAL ON ISSUE
No. of Holders
No. of Shares
204
298
183
383
66
1,134
66,29
906,543
1,436,843
12,588,628
65,501,494
80,499,737
960 holders held less than a marketable parcel of ordinary shares. There is no current on-market buy-back.
34
ENEGEX LIMITED
ABN 28 160 818 986
SUBSTANTIAL SHAREHOLDERS
As disclosed in notices given to the Company.
Name of Substantial Shareholder
Interest in Number of Shares
Beneficial and non-beneficial
% of Shares
Albers Group
Ross Di Bartolo
Graeme Kirke
32,639,070
8,815,126
4,122,667
40.55
10.95
5.12
THE 20 LARGEST HOLDERS OF ORDINARY SHARE
Holder
Mr Ernest Geoffrey Albers
Mr Ross Di Bartolo
Auralandia Pty Ltd
Gascorp Australia Pty Ltd
Mr Graeme Eric Kirke
Sacrosanct Pty Ltd
Small Business Finance Pty Ltd
Australia Finance Pty Ltd
Strata Resources Pty Ltd
Mr Alfredo Varela
Mr Ianaki Semerdziev
TRE Pty Ltd
ICM Investments Pty Ltd
Mr Ernest Geoffrey Albers
Mr Xing Wang Li
Albers Foundation Pty Ltd
Albers Custodian Company Pty Ltd
500 Custodian Pty Ltd
Relativity Pty Ltd
Natural Resources Group Pty Ltd
Ordinary
Shares
% of Total
Issued
13,433,600
8,815,126
5,000,000
4,750,000
4,000,000
2,373,886
2,218,985
1,871,078
1,769,332
1,484,166
1,407,000
1,345,942
1,311,233
1,246,867
1,219,999
1,125,000
987,906
765,000
603,333
523,221
16.70%
10.95%
6.21%
5.90%
4.97%
2.82%
2.76%
2.32%
2.20%
1.84%
1.75%
1.67%
1.63%
1.55%
1.52%
1.40%
1.23%
0.95%
0.75%
0.65%
The 20 largest shareholders hold 56,161,674 shares representing 69.77% of the issued share capital.
35