ENEGEX LIMITED
ABN 28 160 818 986
ANNUAL FINANCIAL REPORT
FOR THE YEAR ENDED
30 June 2023
Corporate Directory
Directors
R. Steinepreis (Chairman)
N. Castleden
R.L. Clark
R.A. Sharpe
Company Secretary
A. Neuling
Registered Office and Principal
Administration Office
Unit 24,589 Stirling Highway
Cottesloe, WA 6011
admin@enegex.com.au
08 6153 1861
www.enegex.com.au
Email:
Phone:
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 40, Central Park
152-159 St George’s Terrace
Perth, WA 6000 Australia
ENX Code: ENX - Ordinary Shares
Incorporated in the State of Victoria
17 October 2012
Review of Operations………………….. 2
Directors’ Report……………………….. 10
Remuneration Report………………….. 15
Directors’ Declaration………………….. 22
Statement of Profit or Loss and Other
Comprehensive Income……………….. 23
Statement of Financial Position………. 24
Statement of Changes in Equity……… 25
Statement of Cash Flows…………….. 26
Notes to the Financial Statements…… 27
Audit Report…………………………….. 46
Auditor’s Independence Declaration…. 49
Corporate Governance………………… 50
Additional ASX Information
51
1
Directors’ Report
Review of Operations
1. West Yilgarn Projects
2022 saw Enegex continue to actively evaluate and refine its landholdings in the West Yilgarn (Figure
1) as it pursued its goal to discover new Ni-Cu-PGE and/or Cu-Au mineralised systems in this emerging
mineral province.
The potential of the West Yilgarn to deliver large-scale economic discoveries has come into sharp focus
in recent years and is highlighted by the highly significant Gonneville Ni-Cu-PGE discovery by Chalice
Mining Ltd, hosted within a mafic-ultramafic intrusion, and the delineation of 2.84Mt of contained copper
at the Caravel Copper Project (Caravel Minerals Ltd) in an area historically interpreted to be underlain
by non-prospective granitic geology. The multi-million-ounce Boddington copper-gold mine (Newmont
Ltd), and the Greenbushes Lithium Operations (Albemarle, IGO, Tianqi) demonstrate that discoveries
in the province can progress through feasibility studies and develop into highly lucrative mining
operations.
Figure 1. Enegex’s Tenure on GSWA 1:500,000 scale Interpreted bedrock geology.
2
Directors’ Report
Enegex’s landholdings in the area were assembled through opportunistic ground acquisition, focussing
on unexplored aeromagnetic and gravity features and regional structural corridors, and are well placed
in amongst active explorers (Figure 2).
Figure 2. Enegex project areas, and tenement holdings of other explorers in the region.
The Company has assembled an excellent historical and geophysical dataset, and is utilising field
geology, past explorative work and regional and proprietary geophysical data to refine its understanding
of the underlying Archean geology.
3
Directors’ Report
An agreement executed in March 2023 for the sale of tenement E70/5442 (part of Walebing Project) to
Caravel Minerals Ltd allowed access to an extensive proprietary (‘Dominion’) roadside surface sampling
dataset that stretches across Enegex’s West Yilgarn project areas (see ASX: ENX release 3rd March
2023). This 3500-point dataset continues to be evaluated, with selected copper and gold targets to be
followed up over the second half of 2023.
Geology is limited to broad-scale government mapping that has interpreted belts of metamorphic
sedimentary, greenstone and gneiss between larger granite plutons (Figure 1) but the accuracy of
interpretation is limited by widespread soil and laterite gravel cover, particularly in the northern Enegex
tenure.
Potential target areas across Enegex’s tenure are assessed and prioritised according to geological
criteria, reconnaissance geochemical sampling results, and accessibility.
A first step is to seek access to potential target areas through liaison with freehold landowners, an
essential process that may at times be time consuming. Energex is very pleased that its geological staff
have gained reconnaissance access to key parts of its mineral tenure and will continue to work closely
with landowners to minimise its impact and work around farming schedules. Once access is obtained
the Company aims to define and quickly evaluate quality targets using low-impact surface sampling
techniques, particularly where prior geochemical coverage is wide spaced or absent. Any areas of
significant gold or basemetal anomalism can then be progressed to ground geophysical surveys and
first-pass drilling.
Enegex’s West Yilgarn tenements are divided into five project areas: Miamoon, Miling, Walebing,
Goomalling and Green Hills (Figure 2), comprising 14 granted exploration licences totalling over
3000km2.
During the year reconnaissance mapping and sampling was carried out over specific, accessible targets
at each of the project areas. Whilst no materially anomalous assay results were received from the 2022
work programs, the work remains at an early stage and elevated copper and gold geochemistry is
evident at the Gladius target in the Goomalling Project, and new targets continue to emerge.
Miamoon Project
Miamoon is a large landholding that straddles two major corridors of potential, a western continuation
of the geological package interpreted to host the Gonneville series of mafic and ultramafic intrusions,
and an eastern structural suture considered an important controlling feature with respect to copper and
gold mineralisation at Caravel and elsewhere. The central area of the tenement block covers several
late-stage magnetic granitoid intrusions that are flanked in places by discrete aeromagnetic anomalies.
Selective tenement reductions and relinquishments were made over the year.
The western Miamoon tenure remains a key target area and contains several unexplored coincident
magnetic and gravity bodies that are prospective for Ni-Cu-PGE styles (Figure 3). Landowner access
continued to be negotiated over the ‘Spitfire’ and ‘Crusader’ aeromagnetic features that were defined
and enhanced via an Airborne Falcon Gravity Gradiometer (AGG) survey conducted late 2021. These
features remain priority drill targets.
4
Directors’ Report
A first pass soil sampling program consisting of 123 samples was completed over geophysical targets
29 and 30 that are located in the far southwest of the Miamoon project, with low levels of platinum
anomalism returned.
Figure 3. Miamoon and Miling tenure and exploration targets on aeromagnetic imagery.
5
Directors’ Report
The Company successfully obtained access to freehold land along the eastern side of the Miamoon
Project during the year, carried out several reconnaissance mapping and rock sampling programs, and
plans to expand geochemical coverage in coming months along a major structural zone that is
interpreted to trend in a north westerly direction through the area (Figure 3). This structural zone is seen
as a potential continuation of structures related to the Caravel Minerals’ copper deposits, and therefore
prospective for structural and porphyry style Cu-Au mineralisation.
Aeromagnetic interpretation over the central Miamoon tenure has highlighted zones of patchy
anomalously high magnetic responses along the margins of granite bodies that may also have potential
for copper-gold mineralisation styles. These zones will receive reconnaissance sampling as access
negotiation progresses.
Miling Project
Activity over 2022 focussed on reconnaissance and landholder negotiations along the western margin
of the Miling project where tenure abuts Todd River Resources tenure and Ni-Cu-PGE anomalism.
Several occurrences of mafic and ultramafic rocks were observed on Enegex tenure that are considered
to be potential host rocks.
The Company made good progress establishing access to freehold land within E70/5444 in the eastern
part of the Miling Project. The tenement contains a major east verging flexure indicated in magnetic
imagery (Figure 3). The flexure and associated structural corridor are considered prospective for gold
or Cu-Au mineralisation and past geochemical coverage is too wide-spaced to be considered effective.
Selective tenement reductions will be made, subject to ongoing exploration results.
Walebing
The Walebing Project comprises several exploration licences in the early stages of exploration located
to the north and west of the Caravel Copper Project (Figure 4) and flanking the Wongan Hills greenstone
belt. Landowner access negotiations continued over the most prospective far eastern margin of the
Project where tenements cover extensions of the Wongan Hill greenstone belt.
Reconnaissance geological mapping and selected rock sampling was carried out in the north-west part
of E70/5439 around a series of east-west trending quartz veins. No materially anomalous results were
obtained, and no follow up work is planned at this prospect.
An agreement executed in March 2023 for the sale of tenement E70/5442 to Caravel Minerals Ltd
allowed access to the 3500-point Dominion roadside surface sampling dataset that stretches across
Enegex’s West Yilgarn project areas. This dataset provided an important increase in the Company’s
geochemical coverage at Walebing and generated several follow-up targets.
Goomalling
Exploration during the year focussed on the north-east of the Project area, where magnetic and gravity
responses sit approximately 10km south-east of Caravel Minerals’ Opie Copper resource (refer to
https://caravelminerals.com.au) and broadly on-trend.
6
Directors’ Report
Figure 4. Goomalling and Walebing tenure and exploration targets on gravity imagery and structural
interpretation.
A total of 176 soil samples were collected at the Gladius Prospect along with supporting rock-chip
sampling, where water bore drill cuttings in gneiss were observed to contain minor disseminated
sulphides (Figure 5). Mapped geology is dominated by gneiss and local exposures of meta sediments,
including banded iron formation, and late gabbro dykes (Figure 5).
7
Directors’ Report
Prospectivity in the area is enhanced by a late-stage granite plug and through-going north trending
structures. Exploration in this area will continue as cropping allows.
Figure 5. Gladius tenure and exploration targets on aeromagnetic imagery.
Green Hills
The Green Hills tenement group covers a belt of metamorphic sedimentary rocks, associated gneiss,
and granitoid intrusions that is relatively well-exposed compared to the northern Energex tenure.
Several campaigns of field mapping and sampling were completed over the year including 73 soil
samples and a rock-chip program at the Edwards Crossing gold prospect. Exploration confirmed that
the areas tested have limited exploration potential and no further work will be completed at those
locations.
It is likely that parts of the Green Hills tenure will be rationalised in coming months to allow focus on the
Company’s higher priority areas.
8
Directors’ Report
2. Hart Project, North Kimberley
During September 2022 the Company completed an initial field campaign at the Hart Project, a
greenfield tenement holding acquired to search for intrusive hosted vanadium-titanium-magnetite
mineralisation. Exploration activities completed included ground validation of desktop targets, rock chip
sampling, traverse mapping, magnetic susceptibility data collection and pXRF data on collected rocks
across the main target areas.
The traverse mapping results highlighted a strongly magnetic gabbroic sill with highly anomalous
magnetic susceptibility values (up to 92 x 10-3 SI). This magnetic gabbroic sill is interpreted to be the
same prospective horizon that hosts the Speewah V-Ti-Fe resource.
A total of 214 samples were assayed, returning results to 0.37% V2O5 and 2.14% Ti.
Following the modest exploration results, and the cost of seasonal exploration in the Kimberley, Enegex
surrendered tenement E80/5354 and withdrew its application for tenement E80/5355 to conclude its
exploration activities in the region. The move allows Enegex to focus its resources on its existing West
Yilgarn Projects, and to pursue new opportunities.
9
Directors’ Report
Directors’ Report
The directors present their report on the consolidated entity consisting of Enegex Limited (“Enegex” or
“the Company”) and the entities it controlled at the end of, or during the year ended 30 June 2023.
Throughout the report, the consolidated entity is referred to as the group.
Principal Activity
The principal activity of the company during the financial year ended 30 June 2023 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 2023 of $1,528,429
(2022: $640,096).
Significant Changes in State of Affairs
In May 2023, the Company completed a placement of 200 million ordinary shares and 55 million free-
attaching options to raise $3 million before costs. Following the placement, Messrs Steinepreis and
Castleden joined the Board of the Company and Messrs Albers and Armitage resigned.
Other than as noted above, 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 2023, the company had a working capital (current assets less current liabilities) surplus of
$2,507,425 (2022: Surplus $556,091).
Directors
The directors in office during the financial year and to the date of this report were:
R Steinepreis BJURIS LLB
Non-Executive Chairman – appointed 9 May 2023
Mr Steinepreis is a corporate and resources lawyer and Executive Chairman of Perth based corporate
law firm, Steinepreis Paganin. He has practised as a lawyer for over 35 years, acting as legal advisor
to a number of public companies, particularly in the energy and resources sector, on a wide range of
corporate matters.
10
Directors’ Report
Mr Steinepreis is currently a director of the following listed companies:
• Meeka Metals Limited (ASX:MEL) - appointed 6 November 2012
• Metalicity Limited (ASX: MCT) - appointed 6 February 2023.
In the last 3 years Mr Steinepreis has held the following directorships of listed companies:
• Clearvue Technologies Limited (ASX:CPV) – resigned 10 February 2023
• Apollo Consolidated Ltd (ASX: AOP) - resigned December 2021
• PetroNor E&P limited (Listed on Oslo Axess) – resigned February 2022
At the date of this report Mr Steinepreis holds an interest in 26,666,667 ordinary shares and a total of
25,000,000 options.
N Castleden
Non-Executive Director – appointed 9 May 2023
Mr Castleden is a geologist with over 25 years of experience in the mineral exploration and development
industry. Mr Castleden was appointed Managing Director and CEO of Solstice Minerals Limited (ASX:
SLS) on 25 January 2023.
In the last 3 years Mr Castleden has held the following directorships of listed companies:
• Apollo Consolidated Ltd (ASX: AOP) - resigned December 2021
• Latitude Consolidated Limited (ASX:LCD) – resigned 1 April 2021
• TNT Mines Limited (ASX:TIN) – resigned 23 October 2022
At the date of this report Mr Castleden holds an interest in 16,000,000 ordinary shares and a total of
25,000,000 options.
RL Clark B.Bus (dist), CA, MAICD, AGIA, ACIS
Executive Director, Director since October 2015
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 currently a director of the following companies:
• Octanex Limited (ASX:OXX until removed from official list on 6 June 2023) – appointed October
2014
• Peako Limited (ASX:PKO) – appointed December 2014
At the date of this report Mrs Clark holds an interest in 75,000 ordinary shares and a total of 4,500,000
options.
Dr RA Sharpe B.Sc. (hons), PhD (Geology)
Non-Executive Director, appointed 31 January 2022
Dr Sharpe has over 30 years’ experience in green and brown field projects with a focus on the
exploration for and evaluation of gold and base metal projects in Australia, South America, West Africa,
Fiji, Solomon Islands and Mexico.
11
Directors’ Report
Dr Sharpe has a Bachelor of Science (Hons) from UTas, a PhD (Geology) from the Centre for Ore
Deposits and Earth Sciences (“CODES”) UTas and completed post-doctoral studies under an ARC
Fellowship at CODES.
Dr Sharpe currently holds no directorships in any other listed companies.
At the date of this report Dr Sharpe holds an interest in 60,833 ordinary shares and a total of 2,750,000
options.
EG Albers LLB, FAICD
Resigned 11 May 2023
Chairman since April 2017, Director since October 2015
Mr Albers has over 35 years’ experience as a director and administrator in corporate law, resource
exploration and investment.
AP Armitage FCA FAICD
Resigned 9 May 2023
Non-Executive Director, Director since April 2017
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
AJ Neuling – FCA, ICAEW, FCIS
Appointed 28 March 2023
Mr Neuling has 25 years’ corporate and financial experience, including more than 20 years across
various ASX-listed companies in the mineral exploration, mining, Oil & Gas and other sectors.
RJ Wright - B.Bus, CPA – resigned 28 March 2023
12
Directors’ Report
Board and Committee Meetings
The number of formal meetings of the Company’s board of directors and relevant committees attended
by each director are set out in the following table. All other matters that required formal Board resolutions
were dealt with via written circular resolutions. In addition, the directors met and corresponded at
numerous times throughout the financial year to discuss the Company' affairs. The board undertakes
all audit committee functions.
Directors’ Meetings
Held
Attended
1
1
3
4
3
4
1
1
3
4
2
4
R Steinepreis
N Castleden
EG Albers
R Clark
AP Armitage
R Sharpe
Share Capital
Ordinary Shares
At 30 June 2023 the Company’s share capital consists of 368,916,018 ordinary fully paid shares (2022:
166,443,711).
In May 2023 Enegex completed a placement issuing 200,000,000 ordinary shares at $0.015 per share
with 55,000,000 free-attaching options to raise $3,000,000 before costs. A further 10,000,000 options
were issued to the placement brokers.
During the year a total of 2,472,307 previously issued, listed options have been exercised, resulting in the
issue of 2,472,307 shares and raising $ 74,822. The remaining 3,819,748 listed options expired,
unexercised.
Options
Listed options
Movements during the year
Balance at beginning of year
Options granted
Options exercised
Options expired
Balance at end of year
2023
6,292,055
-
(2,742,307)
(3,819,748)
-
2022
11,527,140
-
(5,235,085)
-
6,292,055
13
Directors’ Report
Unlisted options
Movements during the year
Balance at beginning of year
Options granted
Options exercised
Options expired
Balance at end of year
2023
28,662,500
70,000,000
-
(4,700,000)
93,962,500
2022
8,750,000
21,912,500
-
(2,000,000)
28,662,500
During the year a total of 15,000,000 unlisted options were granted to directors, employees and
consultants. A further 50,000,000 unlisted options were granted as part of the May 2023 placement.
14
Directors’ Report
Remuneration Report
This report is audited.
Directors / Executives Position Held
R Steinepreis
N Castleden
RL Clark
RA Sharpe
Non-Executive Chairman
Non-Executive Director
Executive Director
Non-Executive Director
appointed 9 May 2023
appointed 9 May 2023
EG Albers
AP Armitage
Non-Executive Chairman
Non-Executive Director
resigned 11 May 2023
resigned 9 May 2023
During the year there were no employees or consultants to the company that meet the definition of key
management personnel, other than the directors.
Director Remuneration
During the year under review, directors were remunerated a total of $167,324 (2022: $130,394).
There is no performance related remuneration for directors. There is no direct relationship between
remuneration of directors and the company’s performance for the last five years. Directors’ remuneration
paid covers all board activities including serving on committees. Remuneration levels are reviewed
annually.
Additional information
The earning of the Consolidated Entity for the five years to 30 June 2023 are summarised below:
Loss after income tax
Share price at financial year end
(cents per share)
2023
$
(1,528,429)
2022
$
(640,096)
2021
$
(475,452)
2020
$
(202,987)
2019
$
(307,079)
2.0
3.3
19.0
1.5
1.0
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.
15
Directors’ Report
Remuneration Report (continued)
Components of directors’ compensation are disclosed below.
Total
Options as
% of Total
$
Short Term
Post
Employ-
ment
Directors
Fees
$
Other
Fees (3)
$
Super
annuation
$
Year ended 30 June 2023
R Steinepreis (2)
N Castleden (2)
RL Clark
RA Sharpe
EG Albers (2)
AP Armitage (2)
5,082
5,082
2,917
35,000
-
-
48,081
-
-
92,400
3,840
-
-
96,240
Year ended 30 June 2022
RL Clark
RA Sharpe
EG Albers
AP Armitage
-
14,583
-
-
92,400
14,682
-
-
14,583 107,082
-
-
-
-
-
-
-
-
-
-
-
-
Equity
Settled
Options
(1)
$
-
-
13,005
6,503
-
4,335
23,843
5,082
5,082
108,322
45,343
-
4,335
168,164
-
-
-
8,729
8,729
92,400
29,265
-
8,729
130,394
-
-
12%
14%
-
100%
-
-
-
100%
(1) The whole value of options granted during the year has been disclosed as remuneration rather than the amount vested.
(2) Roger Steinepreis and Nick Castleden were appointed as directors on 9 May 2023; Peter Armitage and Geoffrey Albers resigned as
directors on 9 May 2023 and 11 May 2023 respectively.
(3) Consulting fees charged by director-related entities.
No shares were issued to directors as part of compensation during the year ended 30 June 2023.
Other transactions with key management personnel
The Company incurred consulting fees with director-related entities on normal commercial terms and
conditions as follows:
Director
RL Clark
RA Sharpe
Director-related entity
Samika Pty Ltd
Sharpes Siding Pty Ltd
Consulting Fees
30 June
2023
$
92,400
3,840
30 June
2022
$
92,400
14,682
Unpaid
30 June
2023
$
-
-
30 June
2022
$
-
7,438
16
Directors’ Report
Remuneration Report (continued)
Key management personnel interest in equity holdings
Fully paid ordinary shares
Number of shares
at start of year Shares Acquired
Number of shares
at end of year (1)
1 July 2022
-
-
26,666,667
16,000,000
75,000
60,833
49,328,283
-
49,464,116
-
-
8,000,000
-
50,666,667
30 June 2023
26,666,667
16,000,000
75,000
60,833
57,328,283
-
100,130,783
R Steinepreis(2)
N Castleden(2)
RL Clark
RA Sharpe
EG Albers(2)
AP Armitage
(1) Or at date of resignation
(2) Shares acquired as part of a placement
Unlisted options
The Company granted a total of 2,750,000 options over ordinary shares to directors RL Clark, RA
Sharpe and AP Armitage during the financial year (2022: 250,000). Option exercise is conditional on
continued involvement with the company. The options granted have been valued using the Black-
Scholes Option Valuation with fair values and share based payment expenses recognised as shown
below:
RL Clark
RA Sharpe
AP Armitage1
Number of options
granted
Fair value at
grant date
1,500,000
750,000
500,000
2,750,000
13,005
6,503
4,335
23,843
Share based
payment
recognised
3,861
1,930
-
5,791
1. Options granted in the period lapsed unexercised following resignation from the Company.
17
Directors’ Report
Remuneration Report (continued)
Director Option Holdings
The table below details the terms and conditions of options held by directors:
Grant date
5/11/2020
29/3/2021
29/11/2021
Expiry
date
2/11/2023
29/3/2024
24/11/2024
Exercise
price
$0.092
$0.013
$0.014
Value at
grant date Vesting terms
$0.0301
$0.0378
$0.0349
Vesting over life of option
Vested on grant
Vested on grant
Conditions
25/1/2022 – A
24/1/2024
$0.015
$0.0215
Vesting over life of option
25/1/2022 – B
4/2/2022
24/1/2025
30/6/2024
$0.015
$0.14
$0.0244
N/a
Vesting over life of option
25/11/2022
9/5/2023 – A
9/5/2023 – B
25/11/2024
30/6/2027
1/7/2027
$0.04
$0.02
$0.04
$0.0087
N/a
N/a
Vesting over life of option
Conditional on
continued involvement
Conditional on
continued involvement
Free-attaching options
Conditional on
continued involvement
Free-attaching options
Free-attaching options
The table below show a reconciliation of options held by each director from the beginning to the end of
the financial year:
2023
Name and Grant
Date
Number of
options at
start of
year
Options
granted as
compen-
sation
Options
exercised
/expired
during year
Other
changes
Number of options at end
of year
Total Unvested
R Steinepreis
9/5/2023 - A
9/5/2023 – B
N Castleden
9/5/2023 - A
9/5/2023 – B
RL Clark
5/11/2020
25/11/2022
RA Sharpe
29/3/2021
25/1/2022 – A
25/1/2022 – B
25/11/2022
EG Albers (1)
4/2/2022
AP Armitage(1,2)
5/11/2020
29/11/2021
25/11/2022
-
-
-
-
-
-
-
-
3,000,000
-
-
1,500,000
500,000
750,000
750,000
-
-
-
-
750,000
2,625,000
-
1,000,000
250,000
-
-
-
500,000
8,875,000
2,750,000
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
12,500,000
12,500,000
12,500,000
12,500,000
12,500,000
12,500,000
12,500,000
12,500,000
-
-
-
-
-
-
-
-
-
-
3,000,000
1,500,000
500,000
750,000
750,000
750,000
2,625,000
1,000,000
250,000
500,000
50,000,000
61,625,000
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(1) At date of resignation
(2) As the options held by Peter Armitage were conditional on continued involvement with the Company, they expired unexercised 3
months after his resignation on 9 May 2023.
End of Remuneration Report
18
Directors’ Report
Indemnification of Officers and Auditors
The Company has indemnified, to the extent permitted by law, the Directors and officers of the Company
against any liability incurred by a Director or officer in or arising out of the conduct of the business of
the Company or in or arising out of the discharge of that officer’s duties. No amount was paid pursuant
to these indemnities during the financial year, nor to the date of this report.
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.
Operating and Financial Risk
The Group faces and manages the following material business risks that could influence the Group’s
future prospects:
Operational risks
The Company may be affected by various operational factors. In the event that any of these potential
risks eventuate, the Company’s operational and financial performance may be adversely affected. No
assurances can be given that the Company will achieve commercial viability through the successful
exploration and/or mining of its tenement interests. Until the Company is able to realise value from its
projects, it is likely to incur ongoing operating losses.
The operations of the Company may be affected by various factors, including failure to locate or identify
mineral deposits, failure to achieve predicted grades in exploration and mining, operational and
technical difficulties encountered in mining, insufficient or unreliable infrastructure such as power, water
and transport, difficulties in commissioning and operating plant and equipment, unanticipated
metallurgical problems which may affect extraction costs, adverse weather conditions, industrial and
environmental accidents, industrial disputes and unexpected shortages or increases in the costs of
consumables, spare parts, plant and equipment.
The Company’s tenements are at various stages of exploration, and potential investors should
understand that mineral exploration and development are speculative and high-risk undertakings that
may be impeded by circumstances and factors beyond the control of the Company.
There can be no assurance that exploration of the Tenements, or any other exploration properties that
may be acquired in the future, will result in the discovery of an economic mineral resource. Even if an
apparently viable deposit is identified, there is no guarantee that it can be economically exploited.
19
Directors’ Report
There is no assurance that exploration or project studies by the Company will result in the definition of
an economically viable mineral. In the event the Company successfully delineates economic deposits
on any Tenement, it will need to apply for a mining lease to undertake development and mining on the
relevant Tenement. There is no guarantee that the Company will be granted a mining lease if one is
applied for and if a mining lease is granted, it will also be subject to conditions which must be met.
Further capital requirements
The Company’s projects may require additional funding in order to progress activities. There can be no
assurance that additional capital or other types of financing will be available if needed to further
exploration or possible development activities and operations or that, if available, the terms of such
financing will be favourable to the Company.
Native title and Aboriginal Heritage
There are areas of the Company’s projects over which legitimate common law and/or statutory Native
Title rights of Aboriginal Australians exist. Where Native Title rights do exist, the Company must obtain
consent of the relevant landowner to progress the exploration, development and mining phases of
operations. Where there is an Aboriginal Site for the purposes of the Aboriginal Heritage legislation, the
Company must obtain consents in accordance with the legislation.
The Company’s activities are subject to Government regulations and approvals
The Company is subject to certain Government regulations and approvals. Any material adverse change
in government policies or legislation in Western Australian and Australia that affect mining, processing,
development and mineral exploration activities, export activities, income tax laws, royalty regulations,
government subsidiaries and environmental issues may affect the viability and profitability of any
planned exploration or possible development of the Company’s portfolio of projects.
Global conditions
General economic conditions, movements in interest and inflation rates and currency exchange rates
may have an adverse effect on the Company’s exploration, development and production activities, as
well as on its ability to fund those activities. General economic conditions, laws relating to taxation, new
legislation, trade barriers, movements in interest and inflation rates, currency exchange controls and
rates, national and international political circumstances (including outbreaks in international hostilities,
wars, terrorist acts, sabotage, subversive activities, security operations, labour unrest, civil disorder,
and states of emergency), natural disasters (including fires, earthquakes and floods), and quarantine
restrictions, epidemics and pandemics, may have an adverse effect on the Company’s operations and
financial performance, including the Company’s exploration, development and production activities, as
well as on its ability to fund those activities.
General economic conditions may also affect the value of the Company and its market valuation
regardless of its actual performance.
Events Since Balance Date
There has been no significant after balance date event up to the date of signing this report.
Proceedings On Behalf Of the Company
There are no proceedings on behalf of the company.
20
Directors’ Report
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 50 and forms part of this Directors’ Report for the year ended 30 June
2023.
No fees were paid to the auditor for non-audit services.
Signed in accordance with a resolution of the directors.
N Castleden
Director
Perth, 20 September 2023
21
Directors’ Report
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 2023 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 15 to 18 of the Directors’ Report, (as part of the
audited Remuneration Report), for the year ended 30 June 2023, 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:
N Castleden
Director
Perth, 20 September 2023
22
Directors’ Report
Consolidated Statement of Profit or Loss and Other Comprehensive Income
for the Year Ended 30 June 2023
Other income
Expenses:
Administration and compliance
Employee benefits
Director fees
Consulting and legal fees
Impairment recognised
Share based payments
Occupancy expenses
Other
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
2022
$
50,535
(241,704)
(111,505)
(14,583)
(46,270)
-
(79,805)
(104,994)
(91,770)
(640,096)
Note
2
2023
$
105,678
(247,605)
(110,108)
(48,081)
(113,702)
(1,012,140)
(24,686)
(43,836)
(33,949)
(1,528,429)
2
3
(1,528,429)
(640,096)
-
-
(1,528,429)
(640,096)
3,851
(1,524,578)
(10,108)
(650,204)
cents
cents
Basic loss per share (cent per share)
Diluted loss per share (cent per share)
19
19
(0.776)
(0.409)
(0.776)
(0.409)
The above Consolidated Statement of Profit or Loss and Other Comprehensive Income is to be read in
conjunction with the accompanying notes.
23
Directors’ Report
Consolidated Statement of Financial Position at 30 June 2023
Note
2023
$
4
5
6
8
7
9
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
Total Liabilities
Net Assets
Equity
Issued capital
Reserves
Accumulated losses
Total Equity
2022
$
706,486
16,876
14,552
737,914
2,577,336
17,025
14,552
2,608,913
-
11,071
1,018,226
1,018,226
1,473,059
1,484,130
3,627,139
2,222,044
84,296
17,191
101,487
168,631
13,191
181,822
3,525,652
2,040,222
11
12
13
7,247,851
4,382,529
342,832
188,083
(4,065,031)
(2,530,390)
3,525,652
2,040,222
The above Consolidated Statement of Financial Position is to be read in conjunction with the
accompanying notes.
24
Directors’ Report
Consolidated Statement of Changes in Equity
for the Year Ended 30 June 2023
At 1 July 2021
Loss for the year
Revaluation of financial asset
(net of tax)
Total comprehensive income for
the year
Issue of shares from exercise of
options
Costs of Issue
Grant of Options
At 30 June 2022
At 1 July 2022
Loss for the year
Issued
capital
$
Accumulated
losses
$
Reserves
Total Equity
$
$
2,930,447 (1,890,294)
118,387
1,158,540
-
-
-
(640,096)
-
(640,096)
-
(10,108)
(10,108)
(640,096)
(10,108)
(650,204)
-
-
-
-
-
1,313,000
-
156,969
-
(17,887)
79,804
79,804
156,969
(17,887)
-
4,382,529 (2,530,390)
188,083
2,040,222
4,382,529
(2,530,390)
188,083
2,040,222
-
(1,528,429)
-
(1,528,429)
Issue of Shares
1,313,000
Revaluation of financial asset
(net of tax)
-
-
3,851
3,851
Total comprehensive income for
the year
Transfer accumulated losses on
sale of financial asset
Issue of Shares
Costs of Issue
Grant of Options
At 30 June 2023
-
(1,528,429)
3,851
(1,524,578)
-
(6,212)
6,212
-
3,074,822
(209,500)
-
-
-
-
-
3,074,822
120,000
(89,500)
24,686
24,686
7,247,851
(4,065,031)
342,832
3,525,652
The above Consolidated Statement of Changes in Equity is to be read in conjunction with the
accompanying notes.
25
Directors’ Report
Consolidated Statement of Cash Flows
For the Year Ended 30 June 2023
Cash Flows from Operating Activities
Payments to suppliers
Administration fees received
Note
2023
$
2022
$
(617,804)
(693,430)
52,444
79,794
Net cash outflow in operating activities
20
(565,360)
(613,636)
Cash Flows from Investing Activities
Interest received
Payments to suppliers – exploration
Proceeds on sale of exploration asset
Proceeds on sale of financial asset
2,704
-
(641,738)
(1,093,660)
75,000
14,922
-
-
Net cash outflow from investing activities
(549,112)
(1,093,660)
Cash Flows from Financing Activities
Proceeds from share issues
Proceeds from exercise of options
Costs of issue
Repayment of borrowings
Proceeds from borrowings
Net cash inflow in financing activities
2,880,000
1,313,000
74,822
(89,500)
(120,000)
240,000
2,985,322
156,969
(17,887)
-
-
1,452,082
10
10
increase/(decrease)
Net
equivalents
in cash and cash
1,870,850
(255,214)
Cash and cash equivalents at the beginning of the
year
706,486
961,700
Cash And Cash Equivalents at Year End
2,577,336
706,486
The above Statement of Cash Flows is to be read in conjunction with the accompanying notes.
26
Directors’ Report
Notes to the Financial Statements
30 June 2023
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 Unit 24, 589
Stirling Highway, Cottesloe WA 6011. The consolidated financial report of the company for the year
ended 30 June 2023 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 21. The financial report was
authorised by the directors for issue on 20 September 2023. 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).
Going concern
The financial statements have been prepared on the going concern basis, which contemplates the
continuity of normal business activity and the commercial realisation of the Company’s assets and the
settlement of liabilities in the normal course of business.
For the year ended 30 June 2023 the Group incurred a net cash outflow from operating and investing
activities of $1,114,472 (2022: $1,707,296) and a net loss after tax of $1,528,429 (2022: $640,096). As
at 30 June 2023, the Group has positive working capital of $2,507,425 (2022: $556,091).
27
Directors’ Report
Note 1 - Significant Accounting Policies (continued)
Based on cashflow forecasts prepared for existing commitments, Directors expect that the Group will
continue as a going concern for at least 12 months from the signing of annual financial report.
The accounting policies set out below have been applied consistently to all periods presented in the
financial report.
New or amended Accounting Standards and Interpretations adopted
The Group has adopted all of the new or amended Accounting Standards and Interpretations issued by
the Australian Accounting Standards Board ('AASB') that are mandatory for the current reporting period.
The adoption of these Accounting Standards and Interpretations did not have any material impact on
the financial performance or position of the Consolidated Entity.
Any new or amended Accounting Standards or Interpretations that are not yet mandatory have not been
early adopted.
(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 indicators:
1)
the exploration and evaluation tenure right has expired or are expected to expire in the near future
and is not expected to be renewed.
2) substantive expenditure on further exploration for and evaluation of mineral resources in the
specific area is neither budgeted nor planned.
3) exploration for and evaluation of mineral resources in the specific area have not led to the discovery
of commercially viable quantities of mineral resources and the entity has decided to discontinue
such activities in the specific area.
4) sufficient data exist to indicate that, although a development in the specific area is likely to proceed,
the carrying amount of the exploration and evaluation asset is unlikely to be recovered in full from
successful development or by sale.
Proceeds from the sale of exploration permits or recoupment of exploration costs from farmin
arrangements are credited against exploration costs previously capitalised. Any excess of the proceeds
overs costs recouped are accounted for as a gain on disposal.
28
Directors’ Report
Note 1 - Significant Accounting Policies (continued)
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.
(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.
29
Directors’ Report
Note 1 - Significant Accounting Policies (continued)
(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.
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 determines 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.
30
Directors’ Report
Note 1 - Significant Accounting Policies (continued)
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).
Per Note 1(c) and 1(f) management exercise judgement as to the whether exploration expenditure is
assessed for impairment. 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.
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.
31
Directors’ Report
Note 1 - Significant Accounting Policies (continued)
(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 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.
Note 2 – Other Income and Expenses
Interest income
Gain on sale of exploration tenement
Geological fee income – director related
Exploration expenditure – not capitalised
Investor relations fees
Other expenses
Note
15
2023
$
2,704
50,530
52,444
105,678
32,530
1,200
219
33,949
2022
$
10
-
50,525
50,534
19,863
58,950
12,957
91,770
32
Directors’ Report
Notes to the Financial Statements
30 June 2023
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 25%
(2022: 30%)
Tax benefit
Deferred tax asset not brought to account
Income tax benefit
2023
$
2022
$
(382,108)
382,108
-
(192,029)
192,029
-
(1,528,429)
(382,108)
(382,108)
382,108
-
(640,096)
(192,029)
(192,029)
192,029
-
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
5,119,239
3,861,747
(1,001,035)
(1,434,356)
4,118,204
2,427,391
Cash at bank and on hand
2,577,336
706,486
Note 5 - Trade and Other Receivables
Other receivables
17,025
17,025
16,876
16,876
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.
33
Directors’ Report
Notes to the Financial Statements
30 June 2023
Note 6 - Prepayments
Prepaid tenement rent
Balance at start for year
Prepaid tenement rent for the year
Balance at end of the year
2023
$
2022
$
14,552
-
14,552
14,552
-
14,552
As at 30 June 2023 the company has one tenement application (2022: 1 application). 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
Tenement sold
Impairment recognised
Balance at end of year
1,473,059
581,777
(24,470)
(1,012,140)
1,018,226
263,719
1,209,340
-
-
1,473,059
The ultimate recoupment of exploration and evaluation expenditure carried forward is dependent on
successful development and exploitation, or alternatively sale of the respective area of interest. Factors
that could impact the future recoverability include the level of reserves and resources, future
technological changes, costs of drilling and production, production rates, future legal changes (including
changes to environmental restoration obligations) and changes to commodity prices.
Note 8 - Financial Assets at Fair Value through other Comprehensive Income
Investments in listed equities
Balance at beginning of year
Fair value movement
Sale of investment
Balance at end of year
11,071
3,851
(14,922)
-
21,179
(10,108)
11,071
34
Directors’ Report
Notes to the Financial Statements
30 June 2023
Note 9 - Trade and Other Payables
2023
$
2022
$
Other payables and accrued expenses
Director-related entities – other payables (Note 15)
Balance at end of year
71,215
13,081
83,378
85,253
84,296
168,631
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 17.
Note 10 - Borrowings
Opening balance
Funds advanced
Borrowings repaid
Closing balance
2023
$
-
240,000
(240,000)
-
2022
$
-
-
-
-
On 15 March 2023 a line of credit was advanced by Australis Finance Pty Ltd, a director-related entity,
for up to $240,000 at 0% interest and maturity of 15 May 2023. The line of credit was utilised in full and
repaid in full on 9 May 2023 by a cash settlement of $120,000 and the issue of 8 million ordinary shares
at $0.015 per share.
Note 11 - Issued Capital
Issued Capital
Ordinary shares fully paid
Ordinary Shares
Balance at beginning of year
Shares issued
Options exercised
Share Purchase Plan
Placement
Costs of issue
Balance at end of year
2023
Shares
368,916,018
2023
$
7,247,851
2022
Shares
166,443,711
2022
$
4,382,529
166,443,711
4,382,529
144,796,126
2,930,447
2,472,307
(a)
(b)
-
(c) 200,000,000
-
(d)
368,916,018
74,822
-
3,000,000
(209,500)
7,247,851
5,235,085
16,412,500
-
-
166,443,711
156,970
1,313,000
-
(17,888)
4,382,529
35
Directors’ Report
Notes to the Financial Statements
30 June 2023
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.
a) Shares issued following the exercise of listed options exercisable on or before 31 August 2022 at
$0.03 per option.
b) On 4 February 2022, the Company issued 16,412,500 ordinary shares at $0.08 per share and
16,412,500 free-attaching options exercisable on or before 30 June 2024 at $0.14 per option, to
raise $1,313,000 before costs.
c) On 9 May 2023, the Company raised $3,000,000 before costs through the issue of 200,000,000
ordinary shares at $0.015 per share. The shares were issued with 27,500,000 free-attaching
options exercisable at $0.02 on or before 30 June 2027 and 27,500,000 free-attaching options
exercisable at $0.04 on or before 1 July 2027. A further 10,000,000 options were issued to the lead
brokers as a share-based payment (see note 16).
d) Costs of issue includes a share-based payment of $120,000 for the options issued to the lead
brokers noted above.
Share Options
Movements during the year
Balance at beginning of the year
Options Granted –
Share based payments
Options Granted –
non share based payments
Options Lapsed
Options Exercised
Balance at end of year
Options Granted during the year
2023
Unlisted
28,662,500
2022
Unlisted
8,750,000
2023
Listed
6,292,055
2022
Unlisted
11,527,140
15,000,000
5,500,000
55,000,000
(4,700,000)
-
98,662,500
16,412,500
(2,000,000)
28,662,500
(3,819,748)
(2,472,307)
-
(5,235,085)
6,292,055
For details of options granted as share-based payments see Note 16.
As part of the 9 May 2023 placement, a total of 55,000,000 free-attaching options were issued to
investors. 27,500,000 options are exercisable at $0.02 on or before 30 June 2027. A further 27,500,000
options are exercisable at $0.04 on or before 1 July 2027.
At the beginning of the year, the Company had 6,292,055 listed options on issue exercisable at $0.03
on or before 31 August 2022. During the financial year, 2,472,307 of the options were exercised and
converted to ordinary shares; the remaining 3,819,748 options lapsed unexercised.
36
Directors’ Report
Notes to the Financial Statements
30 June 2023
Share options outstanding at the end of the year have the following expiry dates and exercise prices:
Expiry date
31 August 2022
5 November 2023
29 March 2024
25 November 2024
24 January 2024
24 January 2024
30 June 2024
Grant date
30 September 2020
6 November 2020
31 March 2021
29 November 2021
25 January 2022 – A
25 January 2022 – B
4 February 2022
23 February 2022 – A 22 February 2024
23 February 2022 – B 22 February 2025
23 February 2022 – C 22 February 2026
25 November 2022
9 May 2023 – A
9 May 2023 – B
9 May 2023 – C
9 May 2023 – D
25 November 2024
30 June 2027
1 July 2027
30 June 2027
1 July 2027
Exercise
price
$0.03
$0.092
$0.13
$0.14
$0.15
$0.20
$0.14
$0.15
$0.20
$0.25
$0.04
$0.02
$0.04
$0.02
$0.04
Share-
based
payment?
N
Y
Y
Y
Y
Y
N
Y
Y
Y
Y
N
N
Y
Y
Number on
issue at 30
June 2023
-
3,000,000
1,750,000
250,000
750,000
750,000
16,412,500
1,250,000
750,000
750,000
3,300,000
27,500,000
27,500,000
5,000,000
5,000,000
93,962,500
Number on
issue at 30
June 2022
6,292,055
6,000,000
1,750,000
250,000
750,000
750,000
16,412,500
1,250,000
750,000
750,000
-
-
-
-
-
34,954,555
Note 12 - Reserves
The following table shows a breakdown of the balance sheet line item “Reserves” and the movements
in these reserves during the year. A description of the nature and purpose of each reserve is provided
below the table.
Financial assets at
comprehensive income
Share-based payments
fair value
through other
2023
$
-
342,832
342,832
2022
$
(10,063)
198,146
188,083
37
Directors’ Report
Notes to the Financial Statements
30 June 2023
Nature and purpose of reserves
Financial assets at fair value through other comprehensive income (FVOCI)
Balance at beginning of the year
Transfer to retained earnings
Revaluation
Balance at end of the year
2023
$
(10,063)
6,212
3,851
-
2022
$
45
-
(10,108)
(10,063)
The group has elected to recognise changes in the fair value of certain investments in equity securities
in other comprehensive income (OCI). These changes are accumulated with the FVOCI reserve within
equity. The group transfers amounts from this reserve to retained earnings when the relevant equity
securities are derecognised.
Share based payments
Balance at beginning of the year
Accounting
recognised in the year (see note 16)
Balance at end of the year
value of
share-based payments
2023
$
198,146
144,686
2022
$
118,342
79,804
342,832
198,146
The reserve relates to share options granted by the Company to its employees and to consultants and
advisors in consideration for services provided. Further information about share-based payments is set
out in note 16.
Note 13 - Accumulated losses
Balance at beginning of the year
Loss for the year
Transfer from Financial Assets at FVOCI
Balance at end of the year
2023
$
(2,530,390)
(1,528,429)
(6,212)
(4,065,031)
2022
$
(1,890,294)
(640,096)
-
(2,530,390)
38
Directors’ Report
Notes to the Financial Statements
30 June 2023
Note 14 - Key Management Personnel
Short-term employee benefits
Post-employment benefits
Share-based payments
2023
$
144,321
-
23,843
168,164
2022
$
121,665
-
8,729
130,394
Detailed remuneration disclosures are provided in the remuneration report on pages 15 to 18.
Note 15 - Related Party Transactions
The consolidated financial statements of the Group include:
Name
Ellendale South Pty Ltd
Diamandia Pty Ltd
2023 Interest
100%
2022 Interest
100%
Country of Incorporation
Australia
100%
100%
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 2023.
Service
Related
director
RL Clark Consulting services
EG Albers Office services
EG Albers Management of exploration
tenements
RA Sharpe Geological services
Entity
Samika Pty Ltd
Exoil Pty Ltd
Natural Resources
Group Pty Ltd
Sharpes Siding Pty
Ltd(1)
Octanex Limited EG Albers
& RL Clark
EG Albers
& RL Clark
Peako Limited
Accounting and
administrative support
Geological services
(1) Robina Sharpe was appointed as director 31 January 2022.
Amounts paid
2022
2023
$
$
Payable at
30/06/23
$
30/06/22
$
92,400 92,400
53,592 60,956
10,000 20,000
-
-
- 23,769
- 20,000
3,840 14,682
-
7,438
137,112 114,098
- 34,046
36,822
-
5,441
-
333,766 302,136
5,441 85,253
39
Directors’ Report
Notes to the Financial Statements
30 June 2023
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 2023. The
amounts exclude GST.
Entity
Peako Limited
Related
director
EG Albers
& RL Clark
Octanex Limited EG Albers
& RL Clark
Service
Services sold
2022
2023
$
$
Receivable at
30/06/23
$
30/06/22
$
Geological
51,534
8,855
17,024
3,010
Geological
910 41,670
-
770
52,444 50,525
17,024
3,780
During the year, Australis Finance Pty Ltd, a related party of EG Albers, advanced the Group an interest
free line of credit of $240,000. The facility was settled in full through a cash payment of $120,000 and
the issue of 8,000,000 ordinary shares at $0.015 per share. See note 10 for further details.
Note 16 - Share Based Payments
Share based payment expense net of forfeiture of options:
Directors
Consultants and employee
Balance at end of year
Share issue expense
Total share-based payments
2023
$
33,532
(8,846)
24,686
120,000
144,686
2022
$
54,983
24,822
79,805
-
79,805
40
Directors’ Report
Notes to the Financial Statements
30 June 2023
During the financial year, options granted as share-based payments were valued using the Black-Scholes
Option valuation model. Details were as follows:
Number issued
Grant date
Expiry date
Exercise price
Share price at approval date
Expected volatility
Option life (years)
Dividend yield
Risk-free interest rate
Other
Fair value at grant date
Employee/
Consultants
5,000,000
25 November 2022
25 November 2024
$0.04
$0.026
88%
2.0
-
3.19%
Continued involvement
Broker Tranche
1
5,000,000
9 May 2023
30 June 2027
$0.02
$0.02
90%
4.1
-
3.22%
N/a
Broker Tranche
2
5,000,000
9 May 2023
1 July 2027
$0.04
$0.02
90%
4.1
-
3.22%
N/a
$0.0087
$43,350
$0.0133
$66,500
$0.0107
$53,500
The table below summarises options granted as share-based payments:
2023
2022
As at 1 July
Granted during the year
Lapsed during the year
Balance at 30 June
Exercisable
Number of
options
12,250,000
15,000,000
(4,700,000)
22,550,000
22,550,000
Weighted
average
exercise
price
$0.1308
$0.0333
$0.0779
Number of
options
8,750,000
5,500,000
(2,000,000)
12,250,000
Weighted
average
exercise
price
$0.1039
$0.1750
$0.1300
In the financial year, 4,700,000 (2022: 2,000,000) options lapsed unexercised as a result of holders no
longer meeting the option conditions.
Details of expiry dates and exercise prices of share options outstanding at the end of the year is included
in Note 11.
Note 17 - 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.
41
Directors’ Report
Notes to the Financial Statements
30 June 2023
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 ‘Fair Value Measurement’ requires disclosure of fair value measurements by level of the fair
value hierarchy, as follows:
Level 1:
Level 2:
Level 3:
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)
The consolidated entity’s financial assets measured and recognised at fair value at 30 June 2023 and 30
June 2022 on a recurring basis are as follows:
30 June 2023
Assets
Listed securities
30 June 2022
Assets
Listed securities
Level 1
$
Level 2
$
Level 3
$
Total
$
-
-
11,071
-
-
-
-
11,071
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 $16,419 (2022: $4,945).
42
Directors’ Report
Notes to the Financial Statements
30 June 2023
Note 17 - Financial Instruments (Continued)
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 2023 the
consolidated entity has no foreign currency exposure (2022: $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.
Note 18 - 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.
43
Directors’ Report
Notes to the Financial Statements
30 June 2023
Note 19 - Loss per Share
2023
$
2022
$
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)
(1,528,429)
197,022,515
(0.776)
(640,096)
156,442,312
(0.409)
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 20 - Reconciliation of Loss to Net Cash Outflow from Operating Activities
Loss after income tax
Investing and financing income
Gain on sale of exploration asset
Exploration impairment
Non-capitalised exploration expense
Capitalisation of salary costs
Share based payments
Employee provisions
Changes in Assets and Liabilities:
Movement in payables
Movement in receivables
(1,528,429)
(640,096)
1,146
(50,530)
1,012,140
32,530
-
-
-
19,863
-
(109,077)
24,686
3,999
(43,807)
(17,095)
79,804
10,895
607
24,368
Net cash outflow from operating activities
(565,360)
(613,636)
Note 21 - 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
53,909
-
53,909
50,303
-
50,303
44
Directors’ Report
Notes to the Financial Statements
30 June 2023
Note 22 - 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
2023
$
601,250
1,286,250
1,887,500
2022
$
1,036,000
5,600,000
6,636,000
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 23 - Events since Balance Date
There has been no significant after balance date event up to the date of signing this report.
Note 24 - Parent Entity Information
Current assets
Non-current assets
Total assets
Current liabilities
Non-current liabilities
Total liabilities
Contributed equity
Financial assets at fair value through other comprehensive
income reserve
Options reserve
Accumulated losses
Total equity
Loss for the year
Other comprehensive income for the year
Total comprehensive income for the year
No dividends were paid by the parent entity in 2023 (2022: Nil).
2023
$
2022
$
2,589,827
1,367,715
3,957,542
101,216
-
101,216
718,481
1,484,736
2,203,217
162,794
-
162,794
7,247,851
-
4,382,529
(10,063)
342,832
(3,734,357)
3,856,326
(1,197,956)
3,851
(1,194,105)
198,146
(2,530,188)
2,040,424
(640,096)
(10,108)
(650,204)
45
Grant Thornton Audit Pty Ltd
Level 22 Tower 5
Collins Square
727 Collins Street
Melbourne VIC 3008
GPO Box 4736
Melbourne VIC 3001
T +61 3 8320 2222
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 2023, 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 2023 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 (including Independence
Standards) (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.
www.grantthornton.com.au
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Grant Thornton Audit Pty Ltd ACN 130 913 594 a subsidiary or related entity of Grant Thornton Australia Limited ABN 41 127 556 389 ACN 127 556 389.
‘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 Limited 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 ACN 127 556 389 and its Australian subsidiaries and related entities. Liability limited by a scheme approved under Professional Standards
Legislation.
46
w
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.
Key audit matter
How our audit addressed the key audit matter
Exploration and Evaluation Assets — Note 7
At 30 June 2023, the carrying value of exploration and
evaluation assets was $1,018,226.
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
indicators of 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 indicators 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 indicators.
Our procedures included, amongst others:
• Obtained the management reconciliation of
capitalised exploration and evaluation expenditure
and agree to the general ledger;
•
•
Reviewed management’s area of interest
considerations against AASB 6;
Conducted a detailed review of management’s
assessment of impairment indicators prepared in
accordance with AASB 6 including;
− Traced projects to statutory registers, exploration
licenses and third party confirmations to
determine whether a current right of tenure
existed;
−
−
Enquired of management regarding their
intentions to carry out exploration and evaluation
activity in the relevant exploration area, including
review of management’s budgeted expenditure;
Understood 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;
• Assessed the accuracy of impairment recorded for
the year as it pertained to exploration interests;
•
•
Evaluated the competence and capabilities of
management in the evaluation of potential
impairment indicators; and
Assessed 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 2023, 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.
Grant Thornton Audit Pty Ltd
Responsibilities of the Directors for the financial report
The Directors of the Company are responsible for the preparation of the financial report that gives a true and fair
view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such internal
control as the Directors determine is necessary to enable the preparation of the financial report that gives a true
and fair view and is free from material misstatement, whether due to fraud or error.
In preparing the financial report, the Directors are responsible for assessing the Group’s ability to continue as a
going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of
accounting unless the Directors either intend to liquidate the Group or to cease operations, or have no realistic
alternative but to do so.
Auditor’s responsibilities for the audit of the financial report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from
material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion.
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance
with the Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements
can arise from fraud or error and are considered material if, individually or in the aggregate, they could
reasonably be expected to influence the economic decisions of users taken on the basis of this financial report.
A further description of our responsibilities for the audit of the financial report is located at the Auditing and
Assurance Standards Board website at: http://www.auasb.gov.au/auditors_responsibilities/ar1_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 15 to 18 of the Directors’ report for the year
ended 30 June 2023.
In our opinion, the Remuneration Report of Enegex Limited, for the year ended 30 June 2023 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, 20 September 2023
Grant Thornton Audit Pty Ltd
Grant Thornton Audit Pty Ltd
Level 22 Tower 5
Collins Square
727 Collins Street
Melbourne VIC 3008
GPO Box 4736
Melbourne VIC 3001
T +61 3 8320 2222
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 2023, I declare that, to the best of my knowledge and belief, there
have been:
a no contraventions of the auditor independence requirements of the Corporations Act 2001 in relation to the
audit; and
b 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, 20 September 2023
www.grantthornton.com.au
ACN-130 913 594
Grant Thornton Audit Pty Ltd ACN 130 913 594 a subsidiary or related entity of Grant Thornton Australia Limited ABN 41 127 556 389 ACN 127 556 389.
‘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 Limited 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 ACN 127 556 389 and its Australian subsidiaries and related entities. Liability limited by a scheme approved under Professional Standards
Legislation.
49
#10161079v1w
Directors’ Report
Corporate Governance Statement
The Company’s Corporate Governance Plan is available in full on the Company’s website at
https://www.enegex.com/corporate-governance and contains the following documents:
Corporate Governance Statement dated 20 September 2023
Board and Committee Charters:
• Board Charter
• Audit Committee Charter
• Nomination and Remuneration Committee Charter
Documentation of Policies and Procedures:
• Code of Ethics
• Continuous Disclosure Policy
• Share Trading Policy
The Corporate Governance Statement discloses the extent to which the Company follows the
recommendations set by the ASX Corporate Governance Council in its publication Corporate
Governance Principles and Recommendations – 4th Edition
(Recommendations). The
Recommendations are not mandatory, however the Recommendations that will not be followed have
been identified and reasons provided for not following them along with what (if any) alternative
governance practices the Company intends to adopt in lieu of the recommendation.
Due to the current size and nature of the existing Board and the magnitude of the Company’s operations,
the Board does not consider that the Company will gain any benefit from individual Board committees
and that its resources would be better utilised in other areas as the Board is of the strong view that at
this stage the experience and skill set of the current Board is sufficient to perform these roles. Under
the Company’s Board Charter, the duties that would ordinarily be assigned to individual committees are
currently carried out by the full Board under the written terms of reference for those committees.
50
Directors’ Report
Additional Securities Exchange Information
The shareholder information set out below was applicable at 8 September 2023 except where otherwise
stated.
1. Twenty largest holders of quoted equity securities
Shareholder
Number Percentage
ASIAGO PTY LTD
MR ROGER STEINEPREIS & MRS JACQUELINE
STEINEPREIS
MR ERNEST GEOFFREY ALBERS
MR DAVID NICHOLAS CASTLEDEN
YARRAANDOO PTY LTD
RAM PLATINUM PTY LTD
AUSTRALIS FINANCE PTY LTD
MR ROSS DI BARTOLO
AURALANDIA PTY LTD
MRS ERMIONE RIMPAS
GASCORP AUSTRALIA PTY LTD
JORLYN INVESTMENTS PTY LTD
SANPEREZ PTY LTD
IGN (TT) PTY LTD
PINVESTMENT PTY LTD
MR DOMINIC VIRGARA
PERTH SELECT SEAFOODS PTY LTD
HARRY HINDSIGHT PTY LTD
MR MICHAEL GEORGE FAULKNER & MRS JENNIFER
KAYE FAULKNER
MR ERNEST GEOFFREY ALBERS
SACROSANT PTY LTD
MR JEREMY DAVID DUNLOP
Total Top 20
Other
Total ordinary shares on issue
26,666,667
26,666,667
18,132,612
16,000,000
13,350,000
13,333,333
8,000,000
7,877,521
7,875,001
7,200,000
7,145,482
7,000,000
6,666,667
6,666,667
6,666,664
6,000,000
5,000,000
4,666,700
4,25,000
3,903,090
3,827,497
3,333,333
210,192,901
158,723,117
368,916,018
7.23
7.23
4.92
4.34
3.62
3.61
2.17
2.14
2.13
1.95
1.94
1.90
1.81
1.81
1.81
1.63
1.36
1.26
1.14
1.06
1.04
0.90
56.98
43.02
100.00
51
Directors’ Report
Additional Securities Exchange Information
2. Substantial shareholders
The following table details the Company’s substantial shareholders as extracted from the Company’s
registers of substantial shareholders:
Name
ALBERS GROUP
ASIAGO PTY LTD
MR ROGER STEINEPREIS &
MRS
JACQUELINE
STEINEPREIS
Number of
ordinary shares
57,328,283
26,666,667
Percentage
15.54%
7.23%
Date of last
notice
9/5/2023
9/5/2023
26,666,667
7.23%
9/5/2023
3. Distribution of holders of equity securities
1 - 1,000
1,001 - 5,000
5,001 – 10,000
10,001 – 100,000
100,001 and over
Fully paid ordinary
shares
Unlisted options
212
276
218
544
234
1,484
-
-
-
48
52
100
Number on issue
368,916,018
81,412,500
Holding
marketable parcel
less
than
a
1,484
-
4. Voting rights
See Note 11 to the Financial Statements
5. Restricted securities
There are currently no restricted securities at the date of this report.:
6. Unquoted equity security holdings greater than 20%
Options
MR DAVID NICHOLAS CASTLEDEN
MR ROGER STEINEPREIS & MRS JACQUELINE
STEINEPREIS
Number
25,000,000
25,000,000
52
Directors’ Report
7. On-market buy-back
There is currently no on-market buy back program for any of the Company’s listed securities.
8. Company secretary, registered and principal administrative office and share registry
The Company Secretary is Mr Alex Neuling.
The Company’s principal and registered office is at Unit 24, 589 Stirling Highway, Cottesloe WA 6011,
telephone number +61 8 6153 1861.
The Company’s share registry is maintained by Automic Group, Level 5, 191 St Georges Terrace, Perth
WA 6000, telephone number 1300 288 644.
9. Tenement listing
Tenement
Number
E70/5439
E70/5440
E70/5441
E70/5444
E70/5445
E70/5446
E70/5457
E70/5458
E70/5460
E70/5463
E70/5466
E70/5467
E70/5580
E70/5631
Location
South-West Terrane, WA
South-West Terrane, WA
South-West Terrane, WA
South-West Terrane, WA
South-West Terrane, WA
South-West Terrane, WA
South-West Terrane, WA
South-West Terrane, WA
South-West Terrane, WA
South-West Terrane, WA
South-West Terrane, WA
South-West Terrane, WA
South-West Terrane, WA
South-West Terrane, WA
Status
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
% Interest
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
53