ENEGEX LIMITED
ABN 28 160 818 986
CORPORATE DIRECTORY
CONTENTS
Chairman’s
Review……………………………..……1
Directors’ Report ...................................... 2
Remuneration Report ............................. 10
Corporate Governance ............................ 12
Directors’ Declaration ............................ 14
Statement of Profit or Loss and
Other Comprehensive Income ................ 15
Statement of Financial Position .............. 16
Statement of Changes in Equity ............. 17
Statement of Cash Flows ........................ 18
Notes to the Financial Statements .......... 19
Audit Report ........................................... 34
Auditor’s Independence Declaration ...... 37
Shareholder and Other Information ........ 38
E.G Albers (Chairman)
R.L. Clark
A.P. Armitage
COMPANY SECRETARY
R.J. Wright
Registered Office
and Principal Administration Office
108 Marlborough Street, Bentleigh East
Victoria 3165, Australia
Telephone:
Facsimile:
Email:
Website:
+61 (0)3 8610 4713
+61 (0)3 8610 4799
www.enegex.com.au
admin@enegex.com.au
Auditor
Grant Thornton Audit Pty Ltd
Collins Square, Tower 5
727 Collins Street
Melbourne, Victoria 3008 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
Enegex Limited (“Enegex”) is a resources company with its focus being to seek opportunities that
may be created by new technologies and techniques in energy generation, transmission and
storage, with a particular emphasis on the natural resources required to advance those new
technologies.
In recent months, Enegex investigated and identified exploration opportunities in the South-West
Terrane of Western Australia, which is emerging as a substantial mineral province.
Enegex has secured a tenement application position covering more than 3,500km2. Enegex
believes the exploration licence applications offer the opportunity for the discovery of a wide
range of minerals.
Following the grant of exploration licences, Enegex intends to conduct exploration activities with
a multi-commodity approach, with the immediate focus being on magmatic Ni-Cu-PGE deposits,
porphyry Cu-Au deposits and Au deposits. It will also be vigilant regarding the potential for
pegmatite Li-Ta-Sn deposits and ion absorption REE deposits.
Enegex is also continuing to progress its applications for two exploration licenses in the eastern
margin of the East Kimberley Basin of Western Australia targeting Vanadium, Cobalt-Nickel,
PGE and Fluorite mineralisation.
I thank my co-directors for their support during the year and welcome to our register new
shareholders resulting form our recent share placement.
E.G. Albers
Chairman
17 September 2020
1
ENEGEX LIMITED
ABN 28 160 818 986
DIRECTORS’ REPORT
The directors present their report on the results and state of affairs of Enegex Limited (“Enegex”,
“the Company” or “the Group”) for the year ended 30 June 2020.
PRINCIPAL ACTIVITY
The principal activity of the company during the financial year ended 30 June 2020 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 2020 of
$202,987 (2019: $307,079).
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 2020, the company had a working capital (current assets less current liabilities) deficit
of $69,085 (2019: Surplus $133,902).
2
New Initiative in an Emerging Province of the South West Terrane
During the year, Enegex initiated a major exploration play in the South West Terrane, Western
Australia, which it expanded with further exploration licence applications in August 2020, to
cover an area of over 3,550km2.
ENEGEX LIMITED
ABN 28 160 818 986
REVIEW OF OPERATIONS
South West Terrane Initiative
• 100% interest in 4 projects areas comprising
20 tenement applications over 3,550km2
• Proximal to Perth with very good
infrastructure
• Located on uplifted margin of Yilgarn Block
• Laterite and residual and transported soils
obscure the Archean bedrock geology
• Julimar Complex (26km long) completely hidden
beneath laterite profile
4
Located proximal to Perth, the South West Terrane is an emerging mineral province of
importance following the recent discovery of palladium and nickel mineralisation by Chalice Gold
Mines Limited at its Julimar Project and Caraval Minerals Ltd’s Caraval copper deposit.
Based on regional geophysical and geological data, Enegex’s northern exploration licence
applications are interpreted to contain mafic and ultramafic igneous intrusions considered to be
similar to the Julimar intrusion hosting the high-grade Ni-Cu-PGE mineralization discovered by
Chalice to the south.
3
ENEGEX LIMITED
ABN 28 160 818 986
Historically, the Greenhills project area has received very little exploration for any mineral
commodity. Previous exploration has been focussed on bauxite and kaolin, and to a lesser extent,
copper and gold. Previous geological mapping identified the presence of small ultramafic
intrusions and mafic rocks (amphibolite, mafic gneiss, mafic granulite, hornblendite) of uncertain
geological affinities. Regional laterite sampling programmes by the Geological Survey of Western
Australia and Amira during the 1990’s revealed the presence of anomalous Ni, Cu, Cr, Zn and Au
which identifies the project area as being of exploration interest. It is, for example, the closest
regional laterite Au-Cu anomaly to the Boddington laterite Au-Cu anomaly.
4
ENEGEX LIMITED
ABN 28 160 818 986
The geology of the South West Terrane is a complex mix of Archean high-grade metamorphic
gneisses and highly radioactive granites with widespread enclaves of greenstone and
dismembered layered mafic and ultramafic intrusions. Proterozoic tectonic events, mainly evident
from mafic dyke swarms, have also impacted the terrane. In general, the Archaean bedrock
geology is not well known as it is blanketed by laterite soil profiles and transported sands.
The Julimar and Caraval deposit discoveries, together with an improved geological and
geophysical understanding of the South West Terrane, are changing perceptions regarding the
prospectivity of the South West Terrane:
• The Julimar Ni-PGE-Cu deposit discovery, made by Challis Gold Mines, is associated
with a magnetic layered gabbroic complex. Similar gabbroic bodies with similar magnetic
features, such as Yarawindah Brook and Coates Siding, are also attracting increased
exploration attention, as are various ultramafic bodies in the terrane.
• The discovery by Caravel Minerals Ltd of the Caraval Cu deposits (366 million tonnes at
0.35% Cu1), hosted by granite, has attracted increased exploration attention for ancient
porphyry Cu-Au deposits in the terrane.
• The giant Boddington gold deposit, generally considered to be a porphyry Au-(Cu-Mo-Bi-
W) deposit, is associated with a late-stage diorite intrusion.
• The Greenbushes lithium mine, hosted by granitic pegmatite, has been a long-lived
mining operation for lithium, tantalum and tin and is recognized as the world’s largest
commercial lithium resource.
• The South West Terrane has long been recognized as one of the world’s premier bauxite
mining provinces.
Enegex believes that the combination of the presence of wide-spread highly radioactive granitoids
and a deeply weathered laterite profile covering large areas of the South West Terrane is also an
attractive environment for the discovery of ion adsorption REE deposits.
In summary, the South West Terrane contains large mines and mineral resources in a favourable
geographical location endowed with excellent infrastructure (including a proposed REE
processing plant). However, it remains little explored, especially for magmatic Ni-Cu-PGE,
porphyry Cu-Au-Mo and Au deposits.
Enegex’s new project areas contain interpreted Archaean gneisses and granites and numerous
pronounced and subtle magnetic anomalies interpreted to be a combination of greenstone enclaves
and mafic and ultramafic intrusions. The Miamoon project area is dominated by a regolith of
transported sand and residual laterite overlying a number of unexplained magnetic anomalies
which attract comparisons to the Julimar magnetic anomaly. The Walebing and Miling project
areas, while dominated by a regolith of transported sand and residual laterite, contain outcropping
ultramafic and mafic rocks.
1 Combined Indicated and Inferred Mineral Resources, Source: Caravel Minerals announcement 3 February 2019
https://caravelminerals.com.au/wp-content/uploads/2019/02/2019-02-13-Major-Increase-in-Caravel-Copper-Resource.pdf
5
ENEGEX LIMITED
ABN 28 160 818 986
Although the South West Terrane contains a prestigious suite of mineral resources and mines, it
has been subject to limited exploration. The tenement package acquired by Enegex has received
little exploration attention from previous explorers.
Bindi Bindi
Ni target
Yarawindah
Ni-PGE-Cu
Julimar
Ni-PGE-Cu
Caravel Cu Resource
366Mt at 0.35% Cu
6
ENEGEX LIMITED
ABN 28 160 818 986
Kimberley Basin Exploration Licences
Enegex has applied for two exploration license applications in the eastern margin of the
Kimberley Basin of Western Australia covering an area of rocks identified as prospective for
vanadium, cobalt-nickel, PGE and fluorite mineralisation.
The geology of the tenements has been mapped as “Hart Dolerite”, a regionally extensive
Proterozoic mafic sill complex which was historically overlooked as a potential nickel target.
Previous exploration in the area has been limited to gold and diamonds.
Enegex has identified recent advances in geological understanding that have altered perceptions
regarding the prospectivity of the Hart Dolerite:
• Mapping and exploration of the Speewah Dome, immediately to the north of the Enegex
tenement areas, has revealed the Hart Dolerite to be a differentiated layered intrusion
(Intrusive Suite) and that the most prospective part of the Intrusive Suite is the
Disseminated Magnetite Gabbro unit which hosts the Speewah Dome Vanadium Deposit
(adjacent to the Enegex application area). The presence of disseminated gold- and copper-
bearing sulphides in the upper magnetite-rich parts of the Intrusive Suite indicates
potential for reef-type PGE mineralization.
• Regolith sampling by the Geological Survey of Western Australia (GSWA) identified
coincident nickel-cobalt anomalies associated with the Hart Dolerite which provides
encouragement to explore the intrusion for these metals.
7
ENEGEX LIMITED
ABN 28 160 818 986
In the Speewah area the Hart Dolerite was subject to a late-stage epithermal event with
carbonate and fluorite overprinting the dolerite. Fluoride is currently being investigated as a
potential replacement for lithium in batteries.
Limited previous exploration has not determined which portions of the differentiated magmatic
sequence of the Intrusive Suite are exposed in the Enegex application areas. Thus, following grant
of the exploration licenses, Enegex intends to assess the magmatic stratigraphy of the Intrusive
Suite and explore primarily for nickel, copper, cobalt, PGE, gold and fluorite.
Both tenements are proceeding through the Native Title Tribunal process.
8
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, resource
exploration and investment.
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.
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.
9
ENEGEX LIMITED
ABN 28 160 818 986
BOARD AND COMMITTEE MEETINGS
There were no formal board and committee meetings held during the year. All matters that
required formal Board resolutions were dealt with via written circular resolutions. 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
SHARE CAPITAL
ORDINARY SHARES
No shares were issued during the year to 30 June 2020. On 20 August 2020 the company
completed a share placement, issuing 20,000,000 ordinary shares and raising $440,000 before
costs and issuing.
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 (2019: $Nil).
There is no performance related remuneration for directors. Directors’ remuneration paid covers
all board activities including serving on committees.
10
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 Direct
ors
Fees
$
-
-
-
-
-
-
-
-
RL Clark
EG Albers
2020
2019
2020
2019
AP Armitage 2020
2019
2020
2019
TOTAL
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 2020.
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 2019
Net
Change
Other
Held
At 30 June
2020
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
11
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
On 7 August 2020 the group applied for six additional exploration permits in the South West
Terrane, Western Australia, an emerging new Nickle-Copper-Cobalt-PGE province.
On 20 August 2020 the company completed a share placement raising $440,000 before costs.
On 27 August 2020 the company announced a 1 for 3 pro-rate non-renounceable rights issue to
raise up to approximately $737,998.
PROCEEDINGS ON BEHALF OF THE COMPANY
There are no proceedings on behalf of the company.
12
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 37 and forms part of this Directors’ Report for the
year ended 30 June 2020.
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, 17 September 2020
13
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 2020 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).
2.
3.
4.
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 10 to 11 of the Directors’ Report, (as part of
the audited Remuneration Report), for the year ended 30 June 2020, 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.
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, 17 September 2020
14
ENEGEX LIMITED
ABN 28 160 818 986
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2020
Interest income
Interest costs
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
2020
$
2
3
289
(534)
(202,742)
(202,987)
(202,987)
-
________
(202,987)
________
2019
$
3,433
-
(310,512)
(307,079)
(307,079)
-
________
(307,079)
________
(4,813)
________
(207,800)
________
(3,370)
________
(310,449)
________
cents
cents
15
15
(0.252)
(0.381)
(0.252)
(0.381)
The above Statement of Profit or Loss and Other Comprehensive Income is to be read in conjunction with the
accompanying notes.
15
ENEGEX LIMITED
ABN 28 160 818 986
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AT 30 JUNE 2020
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
TOTAL NON-CURRENT
ASSETS
TOTAL ASSETS
CURRENT LIABILITIES
Trade and other payables
Interest bearing liabilities
TOTAL LIABILITIES
NET ASSETS
EQUITY
Issued capital
Reserves
Accumulated losses
TOTAL EQUITY
NOTE
2020
$
2019
$
4
5
6
7
8
9
10
50,138
5,797
139,688
________
139,914
2,809
30,056
________
195,623
________
172,779
________
19,735
24,548
________
________
19,735
24,548
________
________
215,358
________
197,327
________
134,136
130,572
________
38,877
-
________
264,708
________
38,877
________
(49,350)
========
158,450
========
1,366,891
(1,399)
(1,414,842)
________
(49,350)
========
1,366,891
3,414
(1,211,855)
________
158,450
========
The above Statement of Financial Position is to be read in conjunction with the accompanying notes.
16
ENEGEX LIMITED
ABN 28 160 818 986
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2020
Issued
capital
Accumulated
losses
$
$
Financial
assets at fair
value through
other
comprehensive
income
$
Total
Equity
$
1,366,891
(1,211,855)
3,414
158,450
-
-
-
(202,987)
-
(202,987)
-
(4,813)
(4,813)
(202,987)
(4,813)
(207,800)
1,366,891
(1,414,842)
(1,399)
(49,350)
1,366,891
(904,776)
6,784
468,899
-
-
-
(307,079)
-
(307,079)
-
(3,370)
(3,370)
(307,079)
(3,370)
(310,449)
1,366,891
(1,211,855)
3,414
158,450
At 1 July 2019
Loss for the year
Revaluation of financial
asset (net of tax)
Total
income for the year
comprehensive
At 30 June 2020
At 1 July 2018
Loss for the year
Revaluation of financial
asset (net of tax)
Total comprehensive
income for the year
At 30 June 2019
The above Statement of Changes in Equity is to be read in conjunction with the accompanying notes.
17
ENEGEX LIMITED
ABN 28 160 818 986
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2020
NOTE
2020
$
2019
$
CASH FLOWS FROM OPERATING
ACTIVITIES
Payments to suppliers
Interest received
Net cash outflow in operating activities
(i)
CASH FLOWS FROM INVESTING ACTIVITIES
Payments to suppliers - exploration
Net cash outflow from investing activities
CASH FLOWS FROM FINANCING ACITVIITIES
Proceeds from borrowings
Net Cost inflow from financing activities
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
(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:
Increase in payables
Decrease in receivables
Net cash outflow from operating activities
(202,987)
29,636
-
100,727
(2,988)
________
(75,612)
=======
(76,265)
653
________
(75,612)
________
(99,256)
4,060
________
(95,196)
________
(120,164)
(51,942)
________
________
(120,164)
______
(51,942)
______
106,000
______
106,000
-
_________
-
(89,776)
139,914
________
50,138
=======
(147,138)
287,052
________
139,914
=======
(307,079)
5,315
201,820
4,997
(249)
________
(95,196)
=======
The above Statement of Cash Flows is to be read in conjunction with the accompanying notes.
18
ENEGEX LIMITED
ABN 28 160 818 986
NOTES TO THE FINANCIAL STATEMENTS
30 JUNE 2020
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 108
Marlborough Street, Bentleigh East, Victoria 3165. The consolidated financial report of the
company for the year ended 30 June 2020 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 18. The financial report was authorised by the directors for issue on 17 September 2020. 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.
19
ENEGEX LIMITED
ABN 28 160 818 986
NOTES TO THE FINANCIAL STATEMENTS
30 JUNE 2020
Going concern
For the year ended 30 June 2020 the Group incurred a net cash outflow from operating and
investing activities of $195,776 (2019: $147,138) and a net loss after tax of $202,742 (2019:
$307,079). As at 30 June 2020, the Group has negative working capital of $69,085 (2019: positive
$148,231) and a net asset deficiency of $49,350 (2019 net asset surplus $158,450).
The financial report has been prepared on a going concern basis. The Group raised $440,000
(before costs) in a share placement completed in August 2020. Directors expect that the Group
will raise approximately $737,000 from a rights issue announced 27 August 2020 to enable it to
continue to meet its debts, if and when they fall due, for at least 12 months from the signing of the
annual 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 16 leases, has had no impact on the company’s accounting policies or the
amounts reported during the current year.
(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.
20
ENEGEX LIMITED
ABN 28 160 818 986
NOTES TO THE FINANCIAL STATEMENTS
30 JUNE 2020
NOTE 1 SIGNIFICANT ACCOUNTING POLICIES (continued)
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.
(d) Trade and other receivables and contract assets
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 reporting date to determine
whether there are indicators of impairment. 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.
21
ENEGEX LIMITED
ABN 28 160 818 986
NOTES TO THE FINANCIAL STATEMENTS
30 JUNE 2020
NOTE 1 SIGNIFICANT ACCOUNTING POLICIES (continued)
(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) Interest Revenue
Interest revenue is recognised on a time proportionate basis that takes into account the effective
yield on the financial asset.
(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.
22
ENEGEX LIMITED
ABN 28 160 818 986
NOTES TO THE FINANCIAL STATEMENTS
30 JUNE 2020
NOTE 1 SIGNIFICANT ACCOUNTING POLICIES (continued)
(k) Income tax (continued)
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).
23
ENEGEX LIMITED
ABN 28 160 818 986
NOTES TO THE FINANCIAL STATEMENTS
30 JUNE 2020
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) 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
(o) 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.
24
ENEGEX LIMITED
ABN 28 160 818 986
NOTES TO THE FINANCIAL STATEMENTS
30 JUNE 2020
NOTE 1 SIGNIFICANT ACCOUNTING POLICIES (continued)
(p) 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.
(q) 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 2019.
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.
25
ENEGEX LIMITED
ABN 28 160 818 986
NOTES TO THE FINANCIAL STATEMENTS
30 JUNE 2020
NOTE 2 EXPENSES
Audit and other related fees
Consultants fees
Licence Fees
Impairment of exploration asset
Office costs
Stock exchange and registry costs
Other expenses
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%
(2019: 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
26
NOTE
2020
$
2019
$
27,637
15,959
18,979
-
70,011
20,979
49,177
________
202,742
=======
(60,896)
60,896
________
-
=======
(202,987)
=======
(60,896)
26,650
1,603
-
201,820
22,717
20,878
36,844
________
310,512
=======
(92,194)
92,194
________
-
=======
(307,079)
=======
(92,124)
_______
(60,986)
_______
(92,124)
60,896
________
-
=======
92,124
________
-
=======
1,590,274
17,399
________
1,607,673
=======
1,268,715
11,221
________
1,279,936
=======
50,138
=====
139,914
======
ENEGEX LIMITED
ABN 28 160 818 986
NOTES TO THE FINANCIAL STATEMENTS
30 JUNE 2020
2020
$
2019
$
NOTE 5 TRADE & OTHER RECEIVABLES
Other receivables
5,797
2,809
________ ________
2,809
======
5,797
=======
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
139,688
30,056
________ ________
30,056
======= =======
139,688
The company applied for twelve exploration tenements in May 2020. The
company now has fourteen applications in progress. If the tenements are granted
rent paid on application will cover rent required on the first year of exploration in
all tenements. As at 30 June 2020 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 TRADE AND OTHER PAYABLES
payables
Other
expenses
Director-related entities – other payables (Note 12)
accrued
and
27,917
24,548
(3,369)
(4,813)
________
________
19,735
24,548
======= =======
28,507
19,344
105,629
19,533
________ ________
38,877
======= =======
134,136
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 13.
27
ENEGEX LIMITED
ABN 28 160 818 986
NOTES TO THE FINANCIAL STATEMENTS
30 JUNE 2020
NOTE 9 INTEREST BEARING LIABILITIES
Line of credit facility
-
======= =======
The line of credit facility is from Australis Finance Pty Ltd which has an interest rate of 7% p.a.
Australis Finance Pty Ltd is a director-related entity (note 12).
130,572
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
2020
Shares
80,499,737
2020
$
1,366,891
2019
Shares
80,499,737
2019
$
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 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 12. Fees paid to directors are
summarised in the table below and detailed in the Remuneration Report section of the Directors’
Report.
28
ENEGEX LIMITED
ABN 28 160 818 986
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
Post Employment
Equity Settled
Total
Year
2020
2019
TOTAL
Director Fees
$
Other Fees
$
Superannuation
$
-
-
-
-
-
-
Options
$
-
-
$
-
-
NOTE 12 RELATED PARTY TRANSACTIONS
The consolidated financial statements of the Group include:
Name
2020 Interest
2019 Interest
Country of Incorporation
Ellendale South Pty Ltd 100%
100%
Diamandia Pty Ltd
100%
100%
Australia
Australia
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 2020.
Entity
Related
director
Service
Samika Pty Ltd RL Clark Consulting services
Exoil Pty Ltd
Natural
Resources Group
Pty Ltd
Octanex Limited EG Albers Accounting and
EG Albers Office services
EG Albers Management of
exploration tenements
administrative support
Amounts paid
2019
2020
$
$
2,480
70,011 24,970
744
5,000
-
Payable at
30/06/20
$
-
75,417
-
30/06/19
$
1,215
7,069
744
27,465 21,755
30,212 10,505
102,476 49,949 105,629 19,533
Director – related borrowings
During the year the Company borrowed $130,572 (2019: $nil) (note 9) against a line of credit
facility from Australis Finance Pty Ltd, with interest rate of 7% p.a. Australis Finance Pty Ltd is a
director-related entity of EG Albers.
29
ENEGEX LIMITED
ABN 28 160 818 986
NOTES TO THE FINANCIAL STATEMENTS
30 JUNE 2020
NOTE 13 FINANCIAL INSTRUMENTS
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.
Fair value
The fair value of financial assets and financial liabilities must be estimated for recognition and
measurement or for disclosure purposes.
AASB 13 requires disclosure of fair value measurements by level of the fair value hierarchy, as
follows:
Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities
Level 2: inputs other than quoted prices included within Level 1 that are observable for the asset
or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices)
Level 3: inputs for the asset or liability that are not based on observable market data (unobservable
inputs).
The consolidated entity’s financial assets measured and recognised at fair value at 30 June 2020
and 30 June 2019 on a recurring basis are as follows:
30 June 2020
Assets
Listed securities
30 June 2019
Assets
Listed securities
Level 1
Level 2
Level 3
$
$
$
Total
$
19,735
-
-
19,735
Level 1
Level 2
Level 3
$
$
$
Total
$
24,548
-
-
24,548
30
ENEGEX LIMITED
ABN 28 160 818 986
NOTES TO THE FINANCIAL STATEMENTS
30 JUNE 2020
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 $351 (2019: $979)
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.
Foreign currency risk
The consolidated entity is exposed to foreign currency risk arising from purchases of goods and
services that are denominated in a currency other than the Australian dollar functional currency.
Data processing by overseas suppliers are usually denominated in US dollars. To this extent, the
consolidated entity is exposed to exchange rate fluctuations between the Australian and US dollar.
At 30 June 2020 the consolidated entity has no foreign currency exposure (2019: $nil).
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.
31
ENEGEX LIMITED
ABN 28 160 818 986
NOTES TO THE FINANCIAL STATEMENTS
30 JUNE 2020
NOTE 14 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.
NOTE 15 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 16 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
2020
$
(202,742)
80,499,737
__________
(0.252)
__________
2019
$
(307,079)
80,499,737
__________
(0.381)
__________
26,637
-
______
26,637
======
26,650
-
______
26,650
======
32
ENEGEX LIMITED
ABN 28 160 818 986
NOTES TO THE FINANCIAL STATEMENTS
30 JUNE 2020
NOTE 17 EVENTS SINCE BALANCE DATE
On 7 August 2020 the group applied for six additional exploration permits in the South West
Terrane, Western Australia, an emerging new Nickle-Copper-Cobalt-PGE province.
On 20 August 2020 the company completed a share placement raising $440,000 before costs.
On 27 August 2020 the company announced a 1 for 3 pro-rate non-renounceable rights issue
to raise up to approximately $737,998.
NOTE 18 PARENT ENTITY INFORMATION
The following details information related to the parent entity, Enegex Limited at 30 June 2020.
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.
Current assets
Non-current assets
Total assets
Current liabilities
Non-current liabilities
Total liabilities
2020
$
55,934
140,520
196,454
237,745
-
237,745
2019
$
142,723
59,987
202,710
38,544
-
38,544
Contributed equity
Financial assets at fair value through other comprehensive
income reserve
Accumulated losses
Total equity
1,366,891
(1,399)
1,366,891
3,414
(1,406,783)
(41,291)
(1,206,139)
164,166
Loss for the year
Other comprehensive income for the year
Total comprehensive income for the year
(200,644)
(4,813)
(205,457)
(301,363)
(3,370)
(304,733)
No dividends were paid by the parent entity in 2020 (2019: Nil).
33
Collins Square, Tower 5
727 Collins Street
Melbourne Victoria 3008
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Melbourne Victoria 3001
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E info.vic@au.gt.com
W www.grantthornton.com.au
Independent Auditor’s Report
To the Members of Enegex Limited
Report on the audit of the financial report
Opinion
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 2020, 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 2020 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 year ended 30 June 2020 we have determined there are no key audit matters to
communicate in our report.
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.
34
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 2020, 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.
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 Company’s/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 Company/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_2020.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 10 to 11 of the Directors’ report for the year ended 30 June
2020.
In our opinion, the Remuneration Report of Enegex Limited, for the year ended 30 June 2020 complies with section 300A
of the Corporations Act 2001.
35
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, 17 September 2020
36
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
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 2020, 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, 17 September 2020
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.
37
ENEGEX LIMITED
ABN 28 160 818 986
Additional Information (unaudited)
As at 16 September 2020 Enegex holds the following interests in Mineral Tenements:
100%
100%
Enegex interest
Tenement
Western Australia (Kimberley Region)
E 80/5354
E 80/5355
Western Australia (South-West Terrane)
E 70/5439
E 70/5440
E 70/5441
E 70/5442
E 70/5446
E 70/5459
E 70/5457
E 70/5458
E 70/5460
E 70/5463
E 70/5444
E 70/5445
E 70/5566
E 70/5567
E 70/5568
E 70/5569
E 70/5570
E 70/5571
E 70/5580
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
First Right of Refusal
First Right of Refusal
100%
100%
100%
100%
100%
100%
100%
Tenement status
Application
Application
Application
Application
Application
Application
Application
Application
Application
Application
Application
Application
Application
Application
Application
Application
Application
Application
Application
Application
Application
Shareholder Information (compiled as at 16 September 2020)
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
203
292
184
367
66
1,112
65,229
890,477
1,446,298
11,808,065
66,289,668
80,499,737
870 holders held less than a marketable parcel of ordinary shares. There is no current on-market
buy-back.
38
ENEGEX LIMITED
ABN 28 160 818 986
SUBSTANTIAL SHAREHOLDERS
As disclosed in notices given to the Company.
Name of Substantial ShareholderInterest in Number of Shares
% of Shares
Beneficial and non-beneficial
Albers Group
Ross Di Bartolo
31,135,517
10,201,611
30.98
10.15
THE 20 LARGEST HOLDERS OF ORDINARY SHARE
Holder Name
MR ERNEST GEOFFREY ALBERS
MR ROSS DI BARTOLO
AURALANDIA PTY LTD
GASCORP AUSTRALIA PTY LTD
SACROSANCT PTY LTD
AUSTRALIS FINANCE PTY LTD
CITICORP NOMINEES PTY LIMITED
BULL EQUITIES PTY LTD
MR IANAKI SEMERDZIEV
TRE PTY LTD
ICM INVESTMENTS PTY LTD
MR ERNEST GEOFFREY ALBERS
SMALL BUSINESS FINANCE PTY LIMITED
ALBERS FOUNDATION PTY LTD
OCEAN MIST PTY LTD
ALBERS CUSTODIAN COMPANY PTY LTD
MS YIFAN XIE
MR OWEN HUNTER WALDRON
MR XING WANG LI
500 CUSTODIAN PTY LTD
Total
Holding
13,443,600
8,415,126
5,000,000
4,750,000
2,273,886
1,871,078
1,709,199
1,450,000
1,407,000
1,345,942
1,311,233
1,246,867
1,218,985
1,125,000
1,000,000
987,906
900,799
800,000
779,999
765,000
51,801,620
%
13.38%
8.37%
4.98%
4.73%
2.26%
1.86%
1.70%
1.44%
1.40%
1.34%
1.30%
1.24%
1.21%
1.12%
1.00%
0.98%
0.90%
0.80%
0.78%
0.76%
51.54%
39