E N E G E X L I M I T E D ( A S X : E N X )
2 0 2 1
A N N U A L
R E P O R T
Corporate Directory
Directors
E.G. Albers (Chairman)
R.L. Clark
A.P. Armitage
Company Secretary
R.J. Wright
Registered Office and Principal
Administration Office
Level 1, 10 Yarra Street, South Yarra
Victoria 3141, Australia
+61 (0)3 8610 4713
+61 (0)3 8610 4799
admin@enegex.com.au
www.enegex.com.au
Telephone:
Facsimile:
Email:
Website:
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
ENX Code: ENX - Ordinary Shares
Incorporated in the State of Victoria
17 October 2012
Chairman’s Letter………………………. 2
Review of Operations………………….. 4
Tenement Schedule……………………. 8
Directors’ Report……………………….. 9
Remuneration Report………………….. 11
Corporate Governance………………… 13
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…………………………….. 35
Auditor’s Independence Declaration…. 38
ASX Additional Information………........ 39
1
Chairman’s Letter
It is with quite some pleasure that I write this
letter to shareholders. The past 12 months or
so have seen the evolution of the strategic
future that we envisaged for the company by
the
reorganisation of our predecessor
company’s (Moby Oil & Gas Limited) corporate
structure (some years ago now) to form
Enegex Limited. From the start we saw the
future of Enegex in energy minerals, based on
the attractiveness of
our acceptance of
emerging concepts for innovative forms of
energy generation, storage, transmission and
usage. We reviewed a number of opportunities
and made application for two tenements in the
East Kimberley before the serendipitous event
of the outstanding Julimar Nickel-Cu-PGE
discovery in the South West Terrane of
Western Australia. The unfolding success of
this discovery, and our knowledge of earlier
explorers’ efforts in the late 1960s to locate
Nickel/PGEs in this region, encouraged us to
take the plunge and to stake-out our own
claims for what became extensive tenement
positions in the region. We made application
for twenty tenements in the greater Julimar
region covering a potentially prospective area
of 3,784 square kilometres. We also previously
had made two applications for tenements with
energy minerals prospectivity in the East
Kimberley region of Western Australia.
licences,
As we entered the start of the 2020/21 year we
had made application for exploration licences
over a total of 14 significant areas, and
proceeded to make application for a further 8
exploration
tenement
application position in the greater Julimar area
to 20 exploration licence applications and 2
applications in the East Kimberley. During the
year under review, all but one of our
applications were granted; 1 in the East
Kimberley and 20 in the greater Julimar region.
taking our
We did not let the grass grow under our feet
during the application phase. We set about
team and accumulated a
building our
considerable amount of historic geological
data. That is an ongoing process.
The historic database has allowed us to better
plan our future exploration strategy. Some
areas of our South West Terrane tenure are
subject to more cover than others, others
appear to have ultramafic outcrop. At the same
time, the quality and usefulness of historic
geophysical data varies across the project
areas, whether this be gravity, magnetic,
radiometric or other geophysical data.
As a result, our exploration emphasis varies
not only from one tenement group to another,
but also within each project group. The same
can be said about variability of our presently
perceived prospectivity of the various groups.
We have reviewed the extent and suitability of
the existing geophysical data and have made
strategic decisions as to what we considered to
be the most appropriate technology to initiate
as our primary investigative tool. At the same
time, we have
ranked our potential
investigative tools to suit our views about
perceived prospectivity, taking to account the
quality and relevance of the historic data that is
available over each tenement.
Our Operations Review in this Annual Report
contains a summary of the activities in South
West Terrane project areas as well as the Hart
Dolerite Project in the East Kimberley.
We have been asked “what is our strategy for
our projects”. I can assure you that, for the
foreseeable future, our strategy is one of
exploration to discover, prove and develop
resources in our own right. There was a time in
the past when
impractical and
this was
unworkable because of the lack of depth of
funding for junior companies in Australia. At
least for the foreseeable future this is no longer
the case. I can see no reason why our
Company should not be able to carry a project
from exploration to discovery and to proof of
resource, through to development and into
production.
2
I
thank our
the Board,
On behalf of
shareholders for their support and financial
contribution which has allowed Enegex to be in
the satisfactory position of having a significant
portfolio of prospective acreage in areas of
high prospectivity.
E.G. Albers
Chairman
Enegex Limited
28th September 2021
3
Review of Operations
West Yilgarn Ni-Cu-PGE Province – Enegex 100%
Enegex has built a commanding tenure position
in the West Yilgarn Ni-Cu-PGE province, the
prospectivity of which has been highlighted by
Chalice Mining’s Julimar Ni-Cu-PGE discovery.
Enegex’s tenure now comprises 20 granted
exploration licences totalling 3,784km2, all of
which were granted during the year ended 30
June 2021.
Globally, giant Ni-Cu-PGE deposits have been
discovered proximal to the margin of Archean age
cratons (eg Norilsk, Jinchuan, the Thompson Belt
and Voisy’s Bay). The Western margin of the
Archean-age Yilgarn Craton in Western Australia
has not until now been systematically explored for
Ni-Cu-PGE mineral systems. However, following
the Julimar discovery, this mineral province is
now the focus of significant exploration activity.
Figure 1 Enegex's West Yilgarn Ni-Cu-PGE Province Tenure
4
The Julimar deposit is hosted in a mafic-
ultramafic intrusive rock sequence that was
previously
interpreted as granitic domain.
Following the discovery of the Julimar deposit,
hundreds of potential mafic-ultramafic intrusions
have been identified within the West Yilgarn Ni-
Cu-PGE province.
Enegex’s tenure in this highly prospective region
is divided into five project areas; Miamoon, Miling,
Walebing, Goomalling and Green Hills.
Enegex considers its project areas to have
potential to contain mafic-ultramafic intrusive
bodies - similar to the rocks hosting the Julimar
Project. The basement geology of Enegex’s
project areas
to consist of
metamorphosed sedimentary, greenstone and
granitic rocks.
interpreted
is
Map detail is limited due to soil cover which is
generally thicker in the north (at Miamoon) and
thins in the south. Notwithstanding the limited
map detail, Enegex’s project areas have been
identified to host mafic-ultramafic rock sequences
with small areas of outcrop and interpreted
bedrock geology
recorded on Geoscience
Western Australia maps.
Figure 2 West Yilgarn Ni-Cu-PGE Province Explorers
5
Within Enegex’s project areas there are a number
of features with distinctive “highs” in the magnetic
and gravity data such as at Enegex’s Miling and
Miamoon projects. These are interpreted to
contain mafic and ultramafic intrusive bodies and
are priority areas
including
geochemistry and subsequent ground-based
geophysics in order to define drilling targets.
for groundwork
During the year, Enegex undertook desktop work
to assist in generating exploration targets and
designing work programs. Work has included
reprocessing of open-file geophysical data
(magnetics,
radiometrics and gravity) and
compilation of historical exploration reports
covering the project areas.
initial
The company also undertook
limited
reconnaissance of areas within the Miamoon
project area available for public access. No
outcropping geology was identified in these areas
due to depth of cover.
Figure 3 GSWA Interpreted bedrock geology 1:500,000 scale
6
Hart Dolerite Project, East Kimberley - Enegex 100%
Enegex has one granted exploration tenement
(E80/5354), covering 374km2, in the eastern
margin of the Kimberley Basin of Western
Australia. An additional 350km2 is still under
application.
Figure 4 Enegex Kimberley tenements shown on
regional geology
“Hart Dolerite”, a
The geology of the project area has been mapped
as
regionally extensive
Proterozoic sill complex. The project area has
had very little previous exploration. Mapping and
exploration (by other companies) immediately to
the north of the project area has identified that the
Hart Dolerite is made up of a layered intrusive
suite of rocks.
The Hart Dolerite shows high mineral potential. It
consists of a number of mafic sills that are
typically tholeiitic - meaning that they are similar
in composition to basalt but are richer in silica and
iron and poorer in aluminum. Tholeiites occur in
flood basalt provinces, back-arc
continental
basins, volcanic arcs and mid ocean ridges.
Horizons may develop within a differentiated
tholeiitic sill that offer a greater mineralisation
prospectivity (eg iron rich zones as a target for
gold mineralisation). Tholeiites are also
prospective for intrusion-hosted Noril’sk style Ni-
Cu-PGE deposits.
The widespread volcanics within the Halls Creek
Oregon are indicative of potential in the co-
intrusive units. Several mafic-
magmatic
ultramafic intrusive units in the Halls Creek
Oregon (which flanks the eastern side of the
Kimberley Basin) are modelled with medium to
high potential, consistent with the presence of
known
intrusion-hosted Ni sulphide
deposits and numerous prospects in this area.
These include the Savannah deposit (previously
Sally Malay), and the Copernicus deposit hosted
by the Alice Downs Ultramafics.
tholeiitic
During the year, Enegex compiled and reviewed
available open file historical data to assist in
generating exploration targets and designing
work programs.
7
Tenement Schedule as at 27 September 2021
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
Granted
Application
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
8
Directors’ Report
The directors present their report on the results and state of affairs of Enegex Limited (“Enegex” or “the
Company”) for the year ended 30 June 2021.
Principal Activity
The principal activity of the company during the
financial year ended 30 June 2021 was the
exploration for natural resources.
Financial Results for the Year
The company recorded an operating loss after
income tax for the year ended 30 June 2021 of
$475,452 (2020: $202,987).
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
in
likely developments
the company’s
The
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.
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
accounting
international
Mr Armitage began his professional career with
an
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.
Currently he holds no directorships in any other
listed companies.
Review Of Financial Position
Company Secretary
At 30 June 2021, the company had a working
capital (current assets less current liabilities)
surplus of $873,642 (2020: Deficit $69,085).
RJ Wright
October 2012
B Bus, CPA – appointed 17
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 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
Board and Committee Meetings
Options
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
At 30 June 2021 the Company’s share capital
consists of 144,796,126 ordinary fully paid shares
(2020: 80,499,737).
placement
On 20 August 2020 the company completed a
share
and
to
Sophisticated investors (Placement Participants),
issuing 20,000,000 ordinary shares and raising
$440,000 before costs and issuing.
Professional
In September 2020 Enegex conducted a pro-rata
shareholder entitlement offer on the same terms
as the placement. Eligible shareholders were
invited to subscribe for their pro-rata entitlement
shares on the basis of 1 new share for every 3
shares held and the grant of 1 new option for no
additional consideration on the basis of 1 new
option for every 2 shares subscribed for under the
entitlement offer. The offer raised $542,236 with
24,647,043 new shares issued and 12,323,617
options granted. The rights issue shortfall of
8,852,869 shares was placed at $0.04 (4 cents)
per share to raise a further $354,115.
During the year a total of 10,796,477 options,
issued to shareholders who participated in the
above placement and right issue, have been
exercised, resulting in the issue of 10,796,477
ordinary fully paid shares and raising a further
$323,728.
Listed options
2021
2020
the
Movements during
year
Balance at beginning of
year
Options granted
Options exercised
Balance at end of year
-
22,323,617
(10,796,477)
11,527,140
-
-
-
-
the company
On 20 August 2020
issued
10,000,000 options to Placement Participants
exercisable at $0.03 (3 cents) on or before 31
August 2022.
In September 2020 12,323,617 options were
granted to eligible shareholders who participated
in the pro-rata entitlement offer. No options were
offered of granted as part of
the shortfall
placement.
In March 2021 Enegex sought listing for the
options exercisable at $0.03 and expiring 31
August 2022 in order to reduce administrative
costs and provide option holders with greater
flexibility.
During the year a total of 10,796,477 options have
been exercised.
Unlisted options
2021
2020
Movements during the
year
Balance at beginning
of year
Options granted
Options exercised
Balance at end of year
-
8,750,000
-
8,750,000
-
-
-
During the year a total of 8,750,000 unlisted
options were granted to directors, employees
and consultants.
10
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 $120,597 (2020: $Nil).
There is no performance related remuneration for directors. Directors’ remuneration paid covers all
board activities including serving on committees.
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
Post
Employment
Equity
Settled
Total
Year
2021
2020
2021
2020
2021
2020
2021
2020
Directors
Fees
$
-
-
-
-
-
-
-
-
Other
Fees
$
-
-
-
-
-
-
-
-
Super
annuation
$
-
-
-
-
-
-
-
-
Options(1)
$
-
-
90,448
-
30,149
-
120,597
-
Options as
percentage
of Total
-
-
100%
-
100%
-
-
-
$
-
-
90,448
-
30,149
-
120,597
-
EG Albers
RL Clark
AP Armitage
TOTAL
(1) The whole value of options granted during the year has been disclosed as remuneration rather than
the amount vested.
There were no shares to directors as part of compensation during the year ended 30 June 2021.
11
Remuneration Report (continued)
Key management personnel interest in equity holdings
Fully paid ordinary shares
Number of shares
at start of year
Other Change
EG Albers (1)
RL Clark
AP Armitage
1 July 2020
32,904,849
75,000
-
Number of shares
at end of year
30 June 2021
8,609,176
41,514,025
-
-
75,000
-
(1) Other Change in shares – on market purchases and rights issue participation.
32,979,849
8,609,176
41,589,025
The Company granted 4,000,000 options over ordinary shares to directors during the financial year
(2020: Nil). All of the options granted in the current financial year have an employment condition and
so vest over that service condition. The options granted during the year ended have been valued using
the Black Scholes Option Valuation The fair value of these share based payment (for accounting) at
grant date was $120,597 (2020: $Nil). A share based payment expense of $26,102 has been recognised
for the year ended 30 June 2021 (2020: $Nil).
Unlisted options (exercisable at $0.03 on or before 31 August 2022)
EG Albers #
RL Clark
AP Armitage
Number of options
at start of year
Number of
options at end of
year
1 July 2020
30 June 2021
Numbers of
options vested
and exercisable
30 June 2021
-
-
-
-
5,189,258
5,189,258
-
-
-
-
5,189,258
5,189,258
# acquired via pro-rata non renounceable rights issue
Unlisted options (exercisable at $0.092 on or before 5 November 2023)
Number of
options at start
of year
1 July 2020
Options
granted during
year
Options
exercised/ex
pired during
year
-
-
-
-
-
3,000,000
1,000,000
4,000,000
-
-
-
-
Number of
options at end
of year
30 June 2021
-
3,000,000
1,000,000
4,000,000
EG Albers
RL Clark
AP Armitage
End of Remuneration Report
12
Indemnification of Officers and Auditors
Proceedings On Behalf Of the Company
There are no proceedings on behalf of the
company.
Auditor
Services
Independence and Non-Audit
A copy of
Independence
the Auditor’s
Declaration, as required under Section 307C of
the Corporations Act 2001, is attached on page
38 and forms part of this Directors’ Report for the
year ended 30 June 2021.
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, 28 September 2021
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
the
company, its subsidiary or by the operator of any
of the permits in which an interest is held.
regulations by
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.
Website
The company has a website that can be found at
www.enegex.com 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.
13
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 2021 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 11 to 12 of the Directors’ Report, (as part of the
audited Remuneration Report), for the year ended 30 June 2021, 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, 28 September 2021
14
Consolidated Statement of Profit or Loss and Other Comprehensive Income
for the Year Ended 30 June 2021
Interest income
Recovery of salary and consultant expenses
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 loss for the year
Note
13
2021
$
1
26,180
(2,580)
2020
$
289
-
(534)
2
(499,053)
(475,452)
(202,742)
(202,987)
(475,452)
(202,987)
3
-
-
(475,452)
(202,987)
1,444
(4,813)
(474,008)
(207,800)
cents
cents
Basic loss per share (cent per share)
Diluted loss per share (cent per share)
17
17
(0.371)
(0.252)
(0.371)
(0.252)
The above Statement of Profit or Loss and Other Comprehensive Income is to be read in conjunction with
the accompanying notes.
15
Consolidated Statement of Financial Position at 30 June 2021
Note
2021
$
4
5
6
8
7
9
10
Current Assets
Cash and cash equivalents
Trade and other receivables
Prepayments
Total Current Assets
Non-Current Assets
Financial assets at
comprehensive income
fair value
through other
Exploration and evaluation expenditure
Total Non-Current Assets
Total Assets
Current Liabilities
Trade and other payables
Provisions
Interest bearing liabilities
Total Liabilities
Net Assets
Equity
Issued capital
Reserves
Accumulated losses
Total Equity
2020
$
50,138
5,797
139,688
195,623
961,700
41,244
14,552
1,017,496
21,179
19,735
263,719
284,898
19,735
1,302,394
215,358
140,864
2,990
-
143,854
134,136
-
130,572
264,708
1,158,540
(49,350)
11
2,930,447
1,366,891
118,387
(1,399)
(1,890,294)
(1,414,842)
1,158,540
(49,350)
The above Statement of Financial Position is to be read in conjunction with the accompanying notes.
16
Consolidated Statement of Changes in Equity
for the Year Ended 30 June 2021
Issued
capital
Accumulated
losses
Financial
assets at fair
value
through
other
comprehensi
ve income
$
Options
Reserve
Total Equity
$
$
$
$
At 1 July 2020
Loss for the year
Revaluation of
asset (net of tax)
financial
Total
income for the year
comprehensive
1,366,891
(1,414,842)
(1,399)
-
(49,350)
-
-
-
(475,452)
-
-
(475,452)
-
1,444
-
1,444
(475,452)
1,444
-
(474,008)
Issue of Shares
1,660,079
-
-
Costs of Issue
Grant of Options
At 30 June 2021
(96,523)
2,930,447
(1,890,294)
45
118,342
1,158,540
-
-
118,342
118,342
-
-
1,660,079
(96,523)
At 1 July 2019
1,366,891
(1,211,855)
3,414
Loss for the year
Revaluation of
asset (net of tax)
financial
Total
income for the year
comprehensive
-
-
-
(202,987)
-
-
(4,813)
(202,987)
(4,813)
At 30 June 2020
1,366,891
(1,414,842
(1,399)
158,450
(202,987)
(4,813)
(207,800)
(49,350)
-
-
-
The above Statement of Changes in Equity is to be read in conjunction with the accompanying notes.
17
Consolidated Statement of Cash Flows
For the Year Ended 30 June 2021
Cash Flows from Operating Activities
Payments to suppliers
Interest received
Note
2021
$
2020
$
(324,420)
(76,265)
-
653
Net cash outflow in operating activities
(i)
(324,420)
(75,612)
Cash Flows from Investing Activities
Payments to suppliers - exploration
Net cash outflow from investing activities
Cash Flows from Financing Activities
Proceeds from share issues
Costs of issue
Repayment of borrowings
Proceeds from borrowings
Net cash inflow in financing activities
Net decrease in cash and cash equivalents
Cash and cash equivalents at the beginning of the
year
(197,002)
(197,002)
(120,164)
(120,164)
1,660,079
(96,523)
(200,572)
70,000
1,432,984
911,562
50,138
-
-
-
106,000
106,000
(89,776)
139,914
Cash And Cash Equivalents at Year End
961,700
50,138
(i) Reconciliation of Loss to Net Cash Outflow in Operating Activities
Loss after income tax
Exploration expensed
Options expense
Employee provisions
Changes in Assets and Liabilities:
Increase in payables
Increase in receivables
Net cash outflow from operating activities
(475,452)
58,420
118,341
2,990
6,728
(35,447)
(324,420)
(202,987)
29,636
-
-
100,727
(2,988)
(75,612)
The above Statement of Cash Flows is to be read in conjunction with the accompanying notes
18
Notes to the Financial Statements
30 June 2021
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 1,
10 Yarra Street, South Yarra Victoria 3141. The
consolidated financial report of the company for
the year ended 30 June 2021 comprises the
company and its subsidiaries (together referred to
as the “consolidated entity” or “the group”) and
the consolidated entity’s
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 28 September 2021. The
principal activity of the company during the year
was natural resources exploration, evaluation and
investment.
interest
in
including
(a) Statement of compliance
The consolidated financial report is a general
purpose financial report which has been prepared
in accordance with Australian Accounting
Accounting
Standards,
Interpretations,
the Australian
issued by
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.
the
is
(b) Basis of preparation
The consolidated financial report is presented in
Australian dollars which
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.
in
Judgements made by management
the
application of Australian Accounting Standards
that have a significant effect on the financial
report and estimates with a significant risk of
material adjustment
the next year are
in
discussed in note 1(m).
The accounting policies set out below have been
applied consistently to all periods presented in the
financial report.
Going concern
For the year ended 30 June 2021 the Group
incurred a net cash outflow from operating and
investing activities of $521,422 (2020: $195,776)
and a net loss after tax of $$475,452 (2020:
$202,987). As at 30 June 2021, the Group has
positive working capital of $873,642 (2020:
negative working capital $69,085).
Directors expect that the group will be able to
successfully raise sufficient funding to enable it to
continue as a going concern for at least 12
months from the signing of annual financial
report.
This financial report has been prepared on a
going concern basis which contemplates the
continuity of normal business activities and the
realisation of assets and settlement of liabilities in
the ordinary course of business.
19
Notes to the Financial Statements
30 June 2021
Note 1 Significant Accounting Policies (continued)
In the event that sufficient funds are not raised to
meet all of the Group's commitments, debt and
payables, the interest in some or all of the Group's
tenements may be affected and all assets and
liabilities may not be realised at the amounts
disclosed. No adjustments have been made
relating to the recoverability and reclassification
of recorded asset amounts and classification of
liabilities that might be necessary should the
Group not continue as a going concern,
the write-down of capitalised
particularly
exploration expenditure should the exploration
permits be ultimately surrendered or cancelled.
the potential uncertainties
Having assessed
relating to the Group’s ability to effectively fund
exploration activities and operating expenditures,
the Directors believe that the Group will continue
to operate as a going concern for the foreseeable
future. Therefore,
it
appropriate to prepare the financial statements on
a going concern basis.
the Directors consider
New and revised accounting standards applicable
for the first time to the current reporting period
The company has adopted all new and revised
Australian
and
Interpretations that became effective for the first
time and are relevant to the company.
Accounting
Standards
Configuration or Customisation Costs in a Cloud
Computing Arrangement (IAS 38
Intangible
Assets)
the
the
financial year
During
International
Financial Reporting Interpretations Committee
IFRIC identified that various approaches to
customisation and configuration costs for cloud
computing arrangements were utilised by
companies depending on internal policy. These
policies varied from expensing all costs to full
capitalisation of all costs in full, with most entities
taking a more nuanced approach
their
capitalisation policy and differentiating between
expenditure with different underlying
fact
patterns.
in
The Agenda Decision requires that management
capitalise those elements of expenditure that
meet the definition of an ‘Intangible Asset’ as
defined by AASB 138 Intangible Assets and
recognise any additional amounts as an expense
as the entity benefits from the expenditure –
either by applying AASB 138 or applying another
accounting standard.
The impact of this decision has not had a material
impact on the group’s financial statements.
(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.
to be
the expenditures are expected
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
further
expenditure
exploration for and evaluation of mineral
resources in the specific area is neither
budgeted nor planned.
on
20
Notes to the Financial Statements
30 June 2021
Note 1 Significant Accounting Policies (continued)
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
exploration and evaluation asset is unlikely
to be recovered in full from successful
development or by sale.
the carrying amount of
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
requirements, anticipated
of current
technology and future costs that have been
discounted to their present value. Estimates of
future costs are reassessed at each reporting
date.
legal
(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.
21
Notes to the Financial Statements
30 June 2021
Note 1 Significant Accounting Policies (continued)
(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
reflects current market
assessments of the time value of money and,
where appropriate, the risks specific to the
liability.
rate
that
(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
time
Interest revenue
proportionate basis that takes into account the
effective yield on the financial asset.
is recognised on a
(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
the carrying
temporary differences between
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.
22
Notes to the Financial Statements
30 June 2021
Note 1 Significant Accounting Policies (continued)
(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.
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).
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$).
to
Per Note 1(c) and 1(f) management exercise
judgement as
the whether exploration
expenditure is assessed for impairment. Any
judgement may change as new information
becomes available. If, after having capitalised
expenditure,
exploration
management concludes
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.
evaluation
that
and
(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
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
the rate of
currencies are retranslated at
exchange ruling at the statement of financial
position date. Foreign exchange gains and losses
resulting
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.
settling
foreign
from
Non-monetary items measured at fair value in a
foreign currency are
the
exchange rates at the date when fair value was
determined.
translated using
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
23
Notes to the Financial Statements
30 June 2021
Note 1 Significant Accounting Policies (continued)
number of ordinary shares that would be issued
on the conversion of all the dilutive potential
ordinary shares into ordinary shares.
(q) Share-based payment transactions
Equity settled transactions
The fair value of options granted are recognised
as an expense with a corresponding increase in
equity. The fair value is measured at grant date
and recognised over the period during which the
grantee become unconditionally entitled to the
options.
The fair value at grant date is independently
determined using an option pricing model that
takes into account the exercise price, the term of
the option, the impact of dilution, the share price
at grant date and expected price volatility of the
underlying share, the expected dividend yield and
the risk free interest rate for the term of the option.
The fair value of the options granted is adjusted
to reflect market vesting conditions, but excludes
the impact of any non-market vesting conditions
(for example, profitability and sales growth
targets). Non-market vesting conditions are
Note 2 Expenses
included in assumptions about the number of
options that are expected to become exercisable.
At each reporting date, the entity revises its
estimate of the number of options that are
expected to become exercisable. The expense
recognised each period takes into account the
most recent estimate. The impact of the revision
to original estimates, if any, is recognised in the
statement of profit or
loss and other
comprehensive income with a corresponding
adjustment to equity.
(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
2020.
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.
Audit and other related fees
Accounting and administration fees
Consultants fees
Licence Fees
Management fee
Office costs
Salaries
Shares based payment
Stock exchange and registry costs
Other expenses
Note
14
2021
$
35,687
86,843
80,028
14,102
20,000
46,726
24,715
118,341
36,420
36,191
499,053
2020
$
27,637
27,568
15,959
18,979
5,000
70,011
-
-
20,979
16,609
202,742
24
Notes to the Financial Statements
30 June 2021
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%
(2020: 30%)
Tax benefit
Deferred tax asset not brought to account
Income tax benefit
2021
$
2020
$
(142,636)
142,636
-
(475,452)
(142,636)
(142,636)
142,636
-
(60,896)
60,896
-
(202,987)
(60,896)
(60,986)
60,896
-
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
2,098,412
(257,327)
1,841,085
1,590,274
17,399
1,607,673
Cash at bank and on hand
961,700
50,138
Note 5 Trade and Other Receivables
Other receivables
41,244
41,244
5,797
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.
25
Notes to the Financial Statements
30 June 2021
Note 6 Prepayments
2021
$
2020
$
Prepaid tenement rent
Balance at start for year
Prepaid tenement rent for the year
Transfer to exploration and evaluation assets (Note 7)
Balance at start for year
139,688
74,952
(200,088)
14,552
-
139,688
-
139,688
As at 30 June 2021 the company has one tenement application (2020: 14 applications). If the tenement
is granted rent paid on application will cover rent required on the first year of exploration in the tenement
If the tenement is not granted the rent paid on application is fully refundable.
Note 7 Exploration and Evaluation
Balance at start for year
Costs for the year
Transfer from prepaid tenement rent (Note 6)
Balance at start for year
Granted tenements
30/06/2021
E80/5354
E70/5439
E70/5440
E70/5441
E70/5442
E70/5631
E70/5444
E70/5445
E70/5446
E70/5457
E70/5458
E70/5459
E70/5460
E70/5463
E70/5566
E70/5567
E70/5568
E70/5569
E70/5570
E70/5571
E70/5580
30/06/2020
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Notes
Granted 23/11/2020
Granted 5/01/2021
Granted 5/01/2021
Granted 5/01/2021
Granted 5/01/2021
Granted 19/05/2021
Granted 4/01/2021
Granted 4/01/2021
Granted 4/01/2021
Granted 24/12/2020
Granted 9/04/2021
Granted 24/12/2020
Granted 23/03/2021
Granted 24/12/2020
Granted 19/03/2021
Granted 19/03/2021
Granted 10/03/2021
Granted 10/03/2021
Granted 10/03/2021
Granted 10/03/2021
Granted 19/03/2021
-
63,631
200,088
263,719
-
-
-
-
26
Notes to the Financial Statements
30 June 2021
Note 8 Financial Assets at Fair Value Through Other Comprehensive Income
2021
$
2020
$
Investments in listed equities
Balance at beginning of year
Net revaluation increment
Balance at end of year
Note 9 Trade and Other Payables
19,735
1,444
19,735
1,444
21,179
21,179
Other payables and accrued expenses
Director-related entities – other payables (Note 13)
47,458
93,406
28,507
105,629
Balance at end of year
140,864
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 14.
Note 10 Interest Bearing Liabilities
Line of credit facility
-
130,572
During the year the Company repaid in full the borrowing 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 (2020: $130,572) (Note 13).
Note 11 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
2021
Shares
80,499,737
2021
$
1,366,891
2021
Shares
80,499,737
2020
$
1,366,891
80,499,737
64,296,389
-
144,796,126
1,366,891
1,660,079
(96,523)
2,930,447
80,499,737
1,366,891
-
80,499,737
-
1,366,891
27
Notes to the Financial Statements
30 June 2021
Note 11 Issued Capital (continued)
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
Movements during the year
Balance at beginning of year
Options Granted
Options Exercised
Balance at end of year
2021
Listed
2020
Listed
2021
Unlisted
2020
Unlisted
-
22,323,617
(10,796,477)
11,527,140
-
-
-
-
-
8,750,000
-
8,750,000
-
-
-
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 AP 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:
Year
2021
2020
TOTAL
Short Term
Director
Fees
$
-
-
Other
Fees
$
-
-
Post Employment Equity Settled
Options
$
Superannuation
$
Total
$
-
-
120,597
-
120,597
-
28
Notes to the Financial Statements
30 June 2021
Note 13 Related Party Transactions
The consolidated financial statements of the Group include:
Name
2021 Interest
2020 Interest
Country of Incorporation
Ellendale South Pty Ltd
Diamandia Pty Ltd
100%
100%
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
Samika Pty Ltd
Exoil Pty Ltd
Natural Resources
Group Pty Ltd
Octanex Limited EG Albers
& RL Clark
Service
Related
director
RL Clark Consulting services
EG Albers Office services
EG Albers Management of exploration
tenements
Accounting and
administrative support
Amounts paid
2020
2021
$
$
67,200
-
46,726 70,011
5,000
20,000
Payable at
30/06/21
$
30/06/20
$
-
-
29,582 75,417
-
20,000
76,485 27,465
43,824 30,212
210,411 102,476
93,406 105,629
During the year services were provided under normal commercial terms and conditions to director-
related entities as disclosed below together with amounts receivable as at 30 June 2021. The
amounts exclude GST.
Entity
Peako Limited
Related
director
EG Albers
& RL Clark
Octanex Limited EG Albers
& RL Clark
Service
Geological
Geological
Services sold
2020
2021
$
$
16,610
9,570
26,180
Receivable at
30/06/21
$
16,610
9,570
26,180
-
-
-
30/06/20
$
-
-
-
Director – related borrowings
During the year the Company repaid in full the borrowing 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 (2020: $130,572) (note 10).
29
Notes to the Financial Statements
30 June 2021
Note 14 Share Based Payments
2021
$
2020
$
Shared based payment expense directors
Share based payment expense – consultants and employee
Balance at end of year
26,102
92,239
118,341
-
-
-
Share options to directors
4,000,000 options were granted to directors in the
year ended 30 June 2021. (2020: Nil options).
On 5 November 2020 3,000,000 options were
granted to Rae Clark and 1,000,000 options to
Peter Armitage. The options have an employment
condition and so vest over the service condition.
The 4,000,000 options granted to directors were
valued using the Black Scholes Option Valuation
model and the following inputs:
Exercise price
Share price at approval date
Maximum option life
Expected volatility
Risk free interest rate
9.2 cents
6.5 cents
3.0 years
87%
0.27%
Expected volatility was based on the average
volatility of a peer group of eleven companies
within the junior minerals exploration industry. The
implied volatility of the eleven companies was in
the range of 67% to 105%. The fair value of this
share based payment (for accounting) at grant
date was $120,597. The options vest over the
service condition so a share based payment
expense with a corresponding increase in equity of
$26,102 has been recognised for the year ended
30 June 2021.
Share options to an executive and a consultant
The 2,000,000 options granted to an executive and
a consultant on 5 November 2020 have an
employment condition and so vest over the service
condition. They were valued using the Black
Scholes Option Valuation model and the following
inputs:
Exercise price
Share price at approval date
Maximum option life
Expected volatility
Risk free interest rate
9.2 cents
6.5 cents
3.0 years
87%
0.27%
Expected volatility was based on the average
volatility of a peer group of eleven companies
within the junior minerals exploration industry. The
implied volatility of the eleven companies was in
the range of 67% to 105%. The fair value of this
share based payment (for accounting) at grant
date was $60,298. The options vest over the
service condition so a share based payment
expense with a corresponding increase in equity of
$13,051 has been recognised for the year ended
30 June 2021.
Share options to consultants
The 1,750,000 options granted to consultants on
31 March 2021 have no employment condition and
so vest on grant date. They were valued using the
Black Scholes Option Valuation model and the
following inputs:
Exercise price
Share price at approval date
Maximum option life
Expected volatility
Risk free interest rate
13 cents
9.1 cents
3.0 years
88%
0.10%
Expected volatility was based on the average
volatility of a peer group of eleven companies
within the junior minerals exploration industry. The
implied volatility of the eleven companies was in
the range of 65% to 120%. The fair value of this
share based payment (for accounting) at grant
date was $75,595. The options vest on grant of the
option so a share based payment expense with a
30
Notes to the Financial Statements
30 June 2021
Note 14 Share Based Payments (Continued)
Expected volatility was based on the average
volatility of a peer group of eleven companies
within the junior minerals exploration industry. The
implied volatility of the eleven companies was in
the range of 65% to 120%. The fair value of this
share based payment (for accounting) at grant
date was $43,197. The options vest over the
service condition so a share based payment
expense with a corresponding increase in equity of
$3,593 has been recognised for the year ended 30
June 2021.
corresponding increase in equity of $75,595 has
been recognised for the year ended 30 June 2021.
Share options to an employee
The 1,000,000 options granted to an employee on
31 March 2021 have an employment condition and
so vest over the service condition. They were
valued using the Black Scholes Option Valuation
model and the following inputs:
Exercise price
Share price at approval date
Maximum option life
Expected volatility
Risk free interest rate
13 cents
9.1 cents
3.0 years
88%
0.10%
Note 15 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.
Level 1:
Level 2:
AASB 13 requires disclosure of fair value measurements by level of the fair value hierarchy, as follows:
quoted prices (unadjusted) in active markets for identical assets or liabilities
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)
inputs for the asset or liability that are not based on observable market data
(unobservable inputs)
Level 3:
The consolidated entity’s financial assets measured and recognised at fair value at 30 June 2021 and 30
June 2020 on a recurring basis are as follows:
31
Notes to the Financial Statements
30 June 2021
Note 15 Financial Instruments (Continued)
Level 1
$
30 June 2021
Assets
Listed securities
30 June 2020
Assets
Listed securities
Level 2
Level 3
$
$
-
Total
$
21,179
21,179
-
19,735
-
-
19,735
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
the
company’s post tax profit by $6,732 (2020: $351)
rate would
/ worsen
improve
Liquidity risk
Liquidity risk is monitored to ensure sufficient
to meet contractual
monies are available
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 2021 the consolidated entity
has no foreign currency exposure (2020: $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.
32
Notes to the Financial Statements
30 June 2021
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 permits and activity is in Australia.
2021
$
2020
$
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)
(475,052)
128,006,707
(0.371)
(202,987)
80,499,737
(0.252)
Despite having options on issue, basic and dilutive loss per share are the same as there is a loss
position and to include options would be anti-dilutive.
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
Balance at start for year
35,687
-
35,687
26,637
-
26,637
33
Notes to the Financial Statements
30 June 2021
Note 19 Exploration and Evaluation Expenditure Commitments
The consolidated entity’s minimum expenditure requirements in exploration permits held by the
consolidated entity at reporting date:
Payable not later than one year
Payable later than one year but not later than four years
Payable not later than one year
2021
$
1,036,000
7,000,000
8,036,000
2020
$
-
-
-
Estimated expenditure, arising from exploration work programmes which, may, subject to negotiation
and approval, be varied. They may also be satisfied by farmout, sale, relinquishment or surrender.
Note 20 Events Since Balance Date
There has been no significant after balance date event up to the date of signing this report.
Note 21 Parent Entity Information
Current assets
Non-current assets
Total assets
Current liabilities
Non-current liabilities
Total liabilities
2021
$
2020
$
1,002,945
299,650
1,302,595
143,854
-
143,854
55,934
140,520
196,454
237,745
-
237,745
Contributed equity
Financial assets at fair value through other comprehensive
income reserve
Options reserve
Accumulated losses
Total equity
2,930,447
45
1,366,891
(1,399)
118,341
(1,890,092)
1,158,741
-
(1,406,783)
(41,291)
Loss for the year
Other comprehensive income for the year
Total comprehensive income for the year
(483,310)
1,444
(481,866)
(200,644)
(4,813)
(205,457)
No dividends were paid by the parent entity in 2021 (2020: Nil).
34
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
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 2021, 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 2021 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.
Material uncertainty related to going concern
We draw attention to Note 1(b) in the financial statements, which indicates that the Group incurred a net loss after tax of
$475,452 and net cash outflows from operating and investing activities of $521,422 during the year ended 30 June 2021. As
stated in Note 1(b), these events or conditions, along with other matters as set forth in Note 1(b), indicate that a material
uncertainty exists that may cast doubt on the Group’s ability to continue as a going concern. Our opinion is not modified in
respect of this matter.
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.
35
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. These matters were addressed in the context of our audit of the financial report as a whole, and in
forming our opinion thereon, and we do not provide a separate opinion on these matters.
In addition to the matter described in the Material uncertainty related to going concern section, we have determined the
matters described below to be the key audit matters to be communicated in our report.
Key audit matter
How our audit addressed the key audit matter
Exploration and Evaluation Assets (Note 7)
At 30 June 2021 the carrying value of exploration and
evaluation assets was $263,719.
In accordance with AASB 6 Exploration for and Evaluation of
Mineral Resources, the Group is required to assess at each
reporting date if there are any triggers for impairment which
may suggest the carrying value is in excess of the recoverable
value.
The process undertaken by management to assess whether
there are any impairment triggers in each area of interest
involves an element of management judgement.
This area is a key audit matter due to the significant judgement
involved in determining the existence of impairment triggers.
Our procedures included, amongst others:
•
•
•
•
•
obtaining the management reconciliation of capitalised
exploration and evaluation expenditure and agreeing to
the general ledger;
reviewing management’s area of interest
considerations against AASB 6;
conducting a detailed review of management’s
assessment of trigger events prepared in accordance
with AASB 6 including;
o
o
o
tracing projects to statutory registers, exploration
licenses and third party confirmations to
determine whether a right of tenure existed;
enquiry of management regarding their intentions
to carry out exploration and evaluation activity in
the relevant exploration area, including review of
management’s budgeted expenditure;
understanding whether any data exists to
suggest that the carrying value of these
exploration and evaluation assets are unlikely to
be recovered through development or sale;
evaluating the competence, capabilities and objectivity
of management’s experts in the evaluation of potential
impairment triggers; and
assessing the appropriateness of the related financial
statement disclosures.
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 2021, 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.
36
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_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 11 to 12 of the Directors’ report for the year ended
30 June 2021.
In our opinion, the Remuneration Report of Enegex Limited, for the year ended 30 June 2021 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
T S Jackman
Partner – Audit & Assurance
Melbourne, 28 September 2021
37
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 2021, 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
T S Jackman
Partner – Audit & Assurance
Melbourne, 28 September 2021
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.
38
ASX additional Information as at 28 September 2021
Additional information required by the ASX Limited Listing Rules and not disclosed elsewhere in this report
is set out below.
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
209
294
250
680
177
1,610
65,773
931,635
1,997,412
25,202,163
121,803,290
150,000,273
553 holders held less than a marketable parcel of ordinary shares. There is no current on-market buy-
back.
Distribution Of Listed Options - exercisable at $0.03 on or before 31 August 2022
Numbers of holders of listed options by size of holding and the total number of listed options:
Listed Options
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 Listed Options
54
110
49
52
12
277
19,742
271,670
340,586
1,481,145
4,209,850
6,322,993
Substantial Shareholders
As disclosed in notices given to the Company.
Name of Substantial
Shareholder
Albers Group
Ross Di Bartolo
Interest in Number of
Shares
46,703,283
10,400,437
% of Shares
31.14
7.24
39
The 20 Largest Holders of Ordinary Shares
Holder Name
Mr Ernest Geoffrey Albers
Mr Ross Di Bartolo
Auralandia Pty Ltd
Gascorp Australia Pty Ltd
Mr Dominic Virgara
Mr Ernest Geoffrey Albers
Sacrosanct Pty Ltd
Mr Michael George Faulkner & Mrs Jennifer Kaye Faulkner
Australis Finance Pty Ltd
Mr David James Schmidt
Mr Bradley James Dening & Mr Shayne Charles Dening
Citicorp Nominees Pty Limited
Ritch Super Nominees Pty Ltd
Mr Ianaki Semerdziev
Mr Timothy Michael Noske
Mr Garry Norman Schubach & Mrs Janelle Margaret Schubach
Albers Custodian Company Pty Ltd
Icm Investments Pty Ltd
500 Custodian Pty Ltd
Manbaro Pty Ltd
Total
The 20 Largest Holders of Listed Options
Holder Name
Mr David John Herbert & Mrs Julie Anne Herbert
Bull Equities Pty Ltd
Mrs Gabrielle Skaltsis
Mrs Elizabeth Mccormick
Mr Teck Kwong Cheng
Stema Oceanic Pty Ltd
Mr Elias Sifis
Mr Ianaki Semerdziev
Mr Dale Leslie Streten & Ms Joanne Margaret Streten
Ocean Mist Pty Ltd
Mr Ian Thompson & Mr Peter Randal Thompson
Relativity Pty Ltd
Mr Graham Robert Foreman
Mr Ross Dix Harvey
Tiger Oil Pty Limited
Mr Barry Dunlop
Pershing Australia Nominees Pty Ltd
Mr Robert William Moses
Mrs Amity Brooke Johnson
Mr Mark William Radosevich
Ms Linda Wilkins
Mr John William Cumming
Total
Holding
18,132,612
7,502,521
7,500,001
7,145,482
6,000,000
3,903,090
3,452,497
3,000,000
2,806,618
2,543,692
2,044,488
1,846,944
1,760,000
1,722,000
1,610,000
1,500,000
1,481,859
1,311,233
1,147,500
1,140,000
77,550,537
Holding
750,000
725,001
500,000
500,000
341,011
322,230
261,657
234,386
200,000
166,667
108,342
100,556
100,000
100,000
95,871
64,387
58,334
55,556
50,000
43,250
42,425
42,270
4,861,943
%
12.09%
5.00%
5.00%
4.76%
4.00%
2.60%
2.30%
2.00%
1.87%
1.70%
1.36%
1.23%
1.17%
1.15%
1.07%
1.00%
0.99%
0.87%
0.77%
0.76%
51.70%
%
11.86%
11.47%
7.91%
7.91%
5.39%
5.10%
4.14%
3.71%
3.16%
2.64%
1.71%
1.59%
1.58%
1.58%
1.52%
1.02%
0.92%
0.88%
0.79%
0.68%
0.67%
0.67%
76.89%
40
Unlisted Options
Four holders hold 6,000,000 unlisted options (exercisable at $0.092 on or before 5 November 2023).
Five holders hold 2,750,000 unlisted options (exercisable at $0.13 on or before 29 March 2024).
41