30 September 2015
30 June 2015 Annual Report
HIGHLIGHTS:
UNDERLYING OPERATING PROFIT OF $781,0001
PRODUCTION TONNES INCREASED BY 50% TO 301,525 TONNES
SALES VOLUME UP 35% TO 272,893 TONNES
SALES REVENUE UP BY 52% TO $16.5m
NET LOSS AFTER TAX SIGNIFICANTLY IMPROVED TO $1.39m
ALL KEY SENIOR EXECUTIVE MANAGEMENT NOW BASED IN EAST AFRICA
Intra Energy Corporation Limited (ASX:IEC) (“IEC” or “Company”) is pleased to provide shareholders the
Company’s Annual Report with audited financial statements for the year ended 30 June 2015.
The Company incurred a net loss for the year of $1.39m, a significant improvement on the net loss of
$20.78m ($7.38m after adjusting for impairments) reported for the prior year.
The African operations reported an operating profit before interest, tax and impairments of $1.33m, an
improvement from the operating loss of $0.42m in the prior year.
The restructure of the executive management and administration functions significantly reduced
corporate overhead costs.
Sponsorship for the development of the 120MW (net) "Pamodzi" coal-fired power station in Malawi and
the 200MW (net) “Ngaka” coal-fired power station continues.
1 Underlying Operating Profit: excludes Loss on Sale of Subsidiary, Depreciation and Amortisation, Share Based Payments,
Finance Income and Finance Costs
For further information please contact:
Shareholder Enquiries
Jonathan Warrand
Non-Executive Director
Intra Energy Corporation Limited
Tel: (02) 9199 5511
www.intraenergycorp.com.au
Contents
Corporate Directory
Chairman’s Report
Review of Operations
Directors’ Report
Remuneration Report
Auditor’s Independence Declaration
Directors’ Declaration
Independent Auditor’s Report
Consolidated Statement of Comprehensive Income
Consolidated Statement of Financial Position
Consolidated Statement of Cash Flows
Consolidated Statement of Changes in Equity
Notes to the Financial Statements
ASX Additional Information
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72
Corporate Directory
DIRECTORS
Graeme Robertson (Chairman)
Jonathan Warrand
David Mason
William Paterson
Simon Harvey (Alternate Director for Jonathan Warrand)
COMPANY SECRETARY
Rozanna Lee
CHIEF OPERATING OFFICER
Tarn Brereton
REGISTERED OFFICE - AUSTRALIA
Suite 2001, Level 20 Australia Square
264 George Street
Sydney NSW 2000
Telephone: (02) 9199 5511
Facsimile: (02) 9247 8966
Email: info@intraenergycorp.com.au
REGISTERED OFFICE - TANZANIA
Amverton Tower
Plot No 1127
Chole Road, Masaki
PO Box 23059
Dar es Salaam, Tanzania
REGISTERED OFFICE - MALAWI
1st Floor, Part of East Wing
Kang’ombe House
City Centre
Lilongwe, Malawi
Share Registry
Link Market Service Limited
Level 12 680 George Street
Sydney NSW 2000
Telephone: (02) 8280 7111
Facsimile: (02) 9287 0309
AUDITORS
KPMG
10 Shelley Street,
Sydney NSW 2000
Telephone: (02) 9335 8052
Facsimile: (02) 9335 7001
INTERNET ADDRESS
www.intraenergycorp.com.au
ABN 65 124 408 751
ASX CODE (IEC)
Page 3
Chairman’s Report
On behalf of the Board of Intra Energy Corporation Limited ("IEC"," Intra Energy" or "the Company"), it is my
pleasure to present the Annual Financial Report for 2015 and this summary of the operating year.
Intra Energy remains the major producer and supplier of industrial coal in Eastern Africa and continues to
expand sales with 0.27million tonnes in 2015, a 35.7% increase over 0.20 million tonnes the previous year.
Sales revenue was US$12.48 million and regions supplied were Tanzania (85%), Kenya (8%) and Malawi (7%). It
is noteworthy that 65% of sales were to the cement industry, a sign of strong economic growth in Eastern
Africa, and confirming that it is undergoing rapid expansion with three new cement production facilities coming
on stream in the next 12 months. The Company expects to capture a share of this market expansion and is
undertaking mine planning measures to cater for production increases.
Despite this expanding market propelled by what is arguably one of the highest growth regions internationally,
market conditions for coal supply have become very competitive with South African and Mozambique
producers backed by traders attacking IEC markets in both Tanzania and Malawi. This has created further
pressure on pricing. The challenge of imported coal has been presented to both the Tanzanian and Malawian
Governments who are sympathetic to Intra Energy's subsidiaries, Tancoal Energy Limited and Malcoal Mining
Limited. They are taking measures to ensure imported coal has no unfair advantage over the domestic coal
supply.
The Company is also operating under very tight fiscal conditions with no wasteful expenditure. IEC has the
support of the Kenya Commercial Bank, a regional bank which has increased the overdraft facility from
US$0.5m to US$1.0m. It is expected that cash will be constrained well into the next Financial Year. However,
the Company is surviving unlike others in the same industry in major western coal producing countries. In 2014
the trading loss for Intra Energy was A$7.4m and this position improved significantly to a trading loss of A$1.4m
in the 2015 year. In terms of operating entities, Tancoal Energy Limited, had a trading profit of A$1.6m, of
which IEC has a 70% interest. With forecast increased supply tonnage in the next year the overall result is
expected to show improvement in bottom line results.
The total loss of $20.8m in 2014 included the impairment of $13.4m from the loss of the Mining Licence held
by Tanzacoal, an 85% owned subsidiary of IEC. Legal action was undertaken to recover the Mining Licence or
compensate IEC for its loss. The court rulings to date have been positive to the Company but the final
proceedings of the court are pending a specific date when the Judgement will be delivered. Both the Company
and the Ministry of Energy and Minerals are prevented from resolving this matter until the court decision is
issued.
IEC continues to sponsor the development of the 120MW (net) "Pamodzi" coal-fired power station in Malawi
and has initialled the Term Sheet to the Power Purchase Agreement (PPA) for the power station. The Attorney
General has given approval to the Government to sign the PPA Term Sheet and the Company expects this to
occur shortly. Discussions are being held with several parties interested in participating in the development of
the power station and IEC expects to select a partner over the coming year.
Expressions of interest have also been received from potential participants for project "Ngaka", a 200MW (net)
mine-mouth power station sited at Tancoal Energy Limited’s Ngaka mine. It is considered timely to re-start
discussions with the Tanzanian Government. The Ngaka coal deposit has attractive lower ash and sulphur and
higher heating properties than other Tanzanian coals. The construction of a 220kVa transmission connection
between Makambako and the nearby town of Songea is underway supported by overseas aid contributions.
This transmission line is expected to connect Project Ngaka with the Tanzanian national electricity grid.
Both Tancoal and Malcoal mining operations are professionally planned and the focus is on improving
efficiency in the operations.
IEC partners in significant community development with the local Women’s Group and by contributing to
education and other local infrastructure including the planning and intended construction of a dedicated haul
road which will eliminate village impact of trucking operations. Malcoal employs extensively from the local
community with a significant percentage of female operators at the mine site.
Page 4
Chairman’s Report
Despite a challenging year, Intra Energy has made substantial progress in the improvement of operating skills,
planning and production to service market growth. Government support is important in creating a competitive
environment and it is pleasing to see this occurring in support of "East African Coal for East African
Development".
Sincerely
Graeme Robertson
Chairman – Intra Energy Corporation Limited
Page 5
Review of Operations
MINING OPERATIONS
IEC’s 100% owned subsidiary, Intra Energy Tanzania Limited (“IETL”), owns a 70% interest in Tancoal Energy
Limited (“Tancoal”), a joint venture with the National Development Corporation of Tanzania (“NDC”), which
holds the remaining 30% interest. Tancoal was granted a Mining Licence (“ML”) by the Tanzanian Government
on 18 August 2011 and commenced mining and supply of coal to domestic and regional industrial customers in
Tanzania, Kenya, Uganda, Zambia and Malawi. Sales increased across the Eastern African region, with a
particular focus on Tanzanian industrial users.
IEC’s flagship project, the Tancoal Mine, is a project of national significance, and remains the major operating
coal mine in Tanzania.
Overburden Stripped (BCM)
Coal mined (tonnes)
Coal Sold (tonnes)
FY15
1,111,670
271,848
257,946
FY14
461,043
203,264
189,597
FY13
260,161
105,484
121,026
During the year a Caterpillar D10 bulldozer was acquired as well as a second crushing plant. Mine planning
optimisation work completed during the year increased the potential for production capacity to 600,000
tonnes per annum, utilising existing machinery and occasional hire equipment. The short term focus is to
expand the customer base such that this level of production is reached. New industrial projects, including new
cement factories, in Tanzania alone have the potential to cover this increase in coal sales expected in 2016.
As at 30 June 2015, approximately 28,000 tonnes was held in stockpiles and more than 70,000 tonnes of coal
had been partially stripped. Coal quality has consistently met with client specifications.
Product coal is distributed from a stockpile at Kitai, some 50 kilometres from the mine pit. It is trucked to this
location. During the year an expansion of the stockyard was completed, which is sufficient for loading up to
the current annual mine production capacity noted above.
Also during the year two potential haul road routes from the Tancoal mine to major roads were surveyed.
Following preliminary feasibility analysis a preferred route has been selected and capital allocated for detailed
design and project costing. Subject to funding, it is planned to commence construction of this haul road during
2016. This road will allow customer trucks to directly access the mine for loading, resulting in transport cost
savings.
MALCOAL (MALAWI)
Malcoal Mining Limited (“Malcoal”) is a joint venture between IEC (90%) and its local partner, Consolidated
Mining Industries Limited (“CMI”) (10%). Malcoal is an important part of IEC’s Eastern African strategy to be the
dominant coal supplier in the region.
Overburden Stripped (BCM)
Coal mined (tonnes)
Coal Sold (tonnes)
FY15
91,126
18,996
13,947
FY14
67,529
27,539
10,780
Malcoal continues to grow slowly and to push into supplying more of the Malawi industrial market. There is
limited scope for regional exports given logistics challenges and existing coal mines in Mozambique, Zambia,
and Zimbabwe.
As at 30 June 2015 3,900 tonnes of coal was held in stockpiles.
A haul road was planned for construction during the financial year however it has been delayed due to the wet
season and then the withdrawal of the nominated contractor. It is now planned for 2016.
Laboratory equipment is currently on order which will further assist with timely quality assurance.
Page 6
Review of Operations
OCCUPATIONAL HEALTH, SAFETY AND ENVIRONMENT (“OHSE”)
OHSE is an important priority for IEC, and is planned at a policy level in Dar es Salaam and managed and
implemented at the mine sites.
Each mine operation is subject to an Environmental Impact Assessment Plan and the operations are regularly
audited by the relevant regulatory authorities. No major issues were identified for the financial year. Initiatives
undertaken included improvement of storm water management systems at both Tancoal and Malcoal by
construction of trenches and ponds, which eliminated stream water pollution, and tree transplanting
surrounding the Tancoal mine, Kitai stockpile and surrounding villages.
PROJECTS
POWER STATION DEVELOPMENT
IEC continues to sponsor two major coal-fired energy projects, Project Pamodzi and Project Ngaka. The
sponsor’s role is to be the originator of the projects, providing the initial equity. IEC will be the exclusive coal
supplier to the proposed power stations.
During FY15, IEC was again identifying potential joint venture partners for both projects who can add expertise
and resources to the projects during development, construction and operations.
PROJECT NGAKA (TANZANIA) – 200 MW (NET)
In the latter part of 2014 the Tanzanian regulator Energy and Water Utilities Regulatory Authority (“EWURA”)
introduced new guidelines for the establishment of new independent power projects. These guidelines include
tariff ranges and a model power purchase agreement. Importantly, all projects are now assessed and approved
by EWURA.
A new Minister was appointed to the Ministry of Energy and Minerals in January 2015. This appointment, along
with the aforementioned guidelines, is a positive development for Project Ngaka.
PROJECT PAMODZI (MALAWI) – 120 MW (NET)
In December 2014 PPA term sheet negotiations with ESCOM were concluded and the term sheet was initialled.
Approval for execution has been given by IEC’s board, and the Attorney General’s office in Malawi has also
approved the term sheet. It is currently being circulated amongst ESCOM’s board for final execution approval.
The delay in execution stems from ESCOM having a new board constituted in March 2015.
IEC entered into a mandate with Standard Bank South Africa in May 2015 with respect to sourcing a joint
venture partner for Project Pamodzi. The mandate is structured on a success only basis. Two potential
partners have been identified and they are currently undertaking due diligence.
DRILLING
In September 2014 IEC completed a joint venture transaction with General Petroleum Oils and Tools Pty
Limited (“GPOT”), a leading Queensland based provider of drilling supplies and consulting services to the oil
and gas industry. GPOT acquired a 50% interest in AAA Drilling Limited (“AAA Mauritius”), a wholly owned
Mauritian subsidiary of IEC.
The Mauritian subsidiary has itself a subsidiary, AAA Drilling Limited (“AAA Tanzania”), an operating drilling
company in Tanzania that was established to undertake drilling and logging for IEC entities and third party
customers in Eastern Africa. AAA Tanzania is seeking to expand its operations in Eastern Africa.
As part of the transaction, GPOT loaned A$700,000 to AAA Tanzania and IEC and GPOT each provided an
additional A$125,000 working capital. Both joint venture partners have equal representation on the board. IEC
is obligated to provide AAA Tanzania with US$200,000 of drilling work each year, and this obligation forms the
substantive part of AAA Tanzania’s recent work and immediate pipeline. A major contract is also being pursued
in Zimbabwe.
Page 7
Review of Operations
EXPLORATION
Limited exploration was undertaken for the financial year, with expenditure controlled so as to preserve cash
whilst still maintaining the tenements in good standing. IEC’s total resources were unchanged for the financial
year and remain as outlined in Table 1.
Table 1 – Intra Energy JORC resources
Measured (Mt)
Indicated (Mt)
Inferred (Mt)
Total (Mt)
16.4
38.9
55.3
3.4
10.1
13.5
68.8
49.1
63.0
112.1
5.0
13.8
18.8
130.9
142.0
114.0
256.0
15.4
14.4
29.8
285.8
207.5
215.9
423.4
23.8
38.3
62.1
485.5
Project
Tanzania
Tancoal – North
Tancoal – South
Tanzania Total
Malawi
Kopakopa
Nkhachira
Malawi Total
Total JORC resources
UAROO (AUSTRALIA)
IEC had two exploration licences (E08/1494 and E08/1495) at Uaroo in Western Australia, and a relationship
with Cauldron Energy Limited (ASX:CXU) for the exploration of Uranium within the leases. The licences lapsed
on 2 July 2015.
Page 8
Review of Operations
COMPETENT PERSON STATEMENT
MBALAWALA
The information in this report relates to Exploration Results, Mineral Resources or Ore Reserves based on the
Mbalawala Mine Bankable Feasibility Study with related infrastructure feasibility options as at 31 August 2010,
the Mbalawala Coal Mine Bankable Feasibility Study as at 13 August 2010 and the Resource Model Assessment
and Review, Ngaka Project Area as at 20 July 2010, the Memorandum Summary provided by JB Mining Services
Pty Ltd dated 18 October 2012 and have been reviewed by Mr David Mason MBA, BSc (Hons). Mr Mason is a
Fellow of the Australasian Institute of Mining and Metallurgy, has Chartered Professional (Management) status,
and as such qualifies as a Competent Person as defined by the “Australasian Code for Reporting of Exploration
Results, Mineral Resources and Ore Reserves (The JORC Code) 2012 Edition”. Mr Mason is a Non-Executive
Director of Intra Energy Corporation Limited and has sufficient experience to qualify as a Competent Person as
defined in the 2004 edition of the “Australian Code for Reporting of Mineral Resources and Ore reserves”. Mr
Mason consents to the inclusion of the matters based on his information in the form and context in which it
appears.
SONGWE-KIWIRA (SONGWE KABULO)
The Resource Statement in relation to Songwe-Kiwira and the Memorandum Summary relating to the Ngaka
coal leases were compiled by Phillip Sides, a qualified senior geologist employed by JB Mining Services Pty Ltd
(JBMS), who has over 25 years’ experience in the exploration and evaluation of coal resources. Mr Sides is a
member of the Australian Institute of Geoscientists and as such, qualifies as a Competent Person as defined by
the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (The JORC
Code) 2012 Edition”. The report has been prepared using the guidelines for the estimation of black coal
resources and reserves as contained in The JORC Code.
Neither Mr Sides nor JBMS has any material interest or entitlement, direct or indirect, in the securities of Intra
Energy Corporation Limited. JBMS has been providing geological services to Intra Energy Corporation on the
Kabulo Project since early 2011.
Mr David Mason, Non-Executive Director of Intra Energy Corporation Limited, originally requested this resource
evaluation. All fees for the preparation of this report are charged on a time and materials basis.
Initial evaluation, computer modelling of seam structure and coal quality and initial coal tonnage estimates
were undertaken by Greg Jones, Senior Consultant/Director of JBMS prior to handing over responsibility of the
resource evaluation to Phillip Sides.
NKHACHIRA AND KOPAKOPA
The information in this report that relates to the Nkhachira and Kopakopa coal resources is based on a report
compiled by Mr David Mason. The reporting is in compliance with the 2012 JORC Code. Mr Mason is a qualified
coal geologist, a Fellow of the Australasian Institute of Mining and Metallurgy (No 100405) and a Non-Executive
Director employed by Intra Energy Corporation Limited. He has sufficient experience relevant to the style of
mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as
a Competent Person as defined in the Australasian Code for Reporting of Mineral Resources and Ore Reserves
published by the Joint Ore Reserves Committee (The JORC Code – 2012 Edition). Mr Mason has given his
consent for the inclusion of this information in the report and has reviewed all statements pertaining to the
information in the form and context in which it appears.
Page 9
Review of Operations
CORPORATE
During the financial year changes were made to the corporate functions of IEC and its subsidiaries to reduce
ongoing administration costs. The full benefit of these reductions will be recognised in the next financial year.
CORPORATE SOCIAL RESPONSIBILITY (“CSR”)
COMMUNITY
At IEC our approach to corporate social responsibility (“CSR”) is about partnership with local communities to
develop initiatives to provide social and economic development as well as environmental protection and
conservation in the areas IEC operate.
By developing partnerships with the communities, IEC is helping to foster sustainable development, share the
socio-economic benefits from its operations and alleviate poverty.
IEC’s focus is helping communities by developing infrastructure, education and health opportunities by the
employment of local personnel. It relies on the local community for operational support rather than external
contractors in order to boost the local economy where it operates. IEC makes direct contributions to the
community through building infrastructure and donations of equipment and supplies, and transfers capabilities
and skills to enhance work abilities.
IEC is a member of the Australian African Mining Industry Group (“AAMIG”) – an industry body that promotes
best practice in corporate social responsibility among Australian mining companies active in Africa.
Some of the key challenges associated with investing in Africa relate to governance, capacity building, human
rights, environment and social issues. The mining industry in both Tanzania and Malawi represents a large
potential source of income for the long-term development of these economies. IEC is therefore committed to
continue to work in conjunction with the government and local communities to put in place programs and
develop projects that have a tangible outcome, and priority is given to projects that alleviate poverty,
contribute to building skills and support women’s and youth economic empowerment, especially through
education and business ownership.
TANZANIA
MBALAWALA WOMEN’S GROUP (“THE WOMEN’S GROUP”)
The Women’s Group was established in late 2011 after consultation with local women and in partnership with
community leaders. The Women’s Group provides local goods and camp services to the mine employees and is
funded by Tancoal with assistance from a successful grant application from the Australian Government’s Direct
Aid Programme.
During the year the Women’s Group commenced agency services for a major Tanzanian bank, meaning village
residents now have access to banking services without travelling to the nearest major town. As well, significant
progress was made in having a coal briquette certified by the Tanzanian Bureau of Standards. These coal
briquettes are an alternative to charcoal. Charcoal production is one of the major contributors to deforestation
in Tanzania.
EDUCATION
Education for the local communities is very important. During the year Tancoal supplied sporting equipment to
local schools as well as materials for school building projects.
COMMUNITY AND HEALTH
During the year Tancoal provided materials to assist in the construction of two local village medical
dispensaries. As well, provision of clean water to the village closest to the mine was ongoing.
MALAWI
Intra Energy facilitated the establishment of a group of local women to provide catering services for Malcoal
mine workers, as well as setting up an agricultural program.
Page 10
Directors’ Report
The Directors submit their report for Intra Energy Corporation Limited (“IEC” or “the Company”) and its
controlled entities for the year ended 30 June 2015 (together referred to as “the Group” or “the Consolidated
Entity”).
DIRECTORS
The names and details of the Company’s Directors in office during the financial year and until the date of this
report are as follows. The Directors were in office for the entire period unless otherwise stated.
Name
Position
Description
Graeme
Robertson
BA, FAICD, MAIE
Non-Executive Chairman
Jonathan
Warrand
MBA (Exec), CA,
FINSIA, IPAA,
BCom
(Accounting)
Non-Executive Director
(position as Chief
Financial Officer ceased
on 31 October 2014)
Graeme joined the Board in November 2010 as Non-Executive
Chairman and was appointed Executive Chairman in January 2011.
He has over thirty years’ experience in the coal, infrastructure and
power development industries. Graeme transitioned to Non-
Executive Chairman on 1 November 2014. Graeme is a member of
the Remuneration Committee.
From 1983 to 2005 Graeme was CEO and Managing Director of
New Hope Corporation Limited (ASX:NHC). During this period he
pioneered the development of major international companies
including as President Director of Adaro Indonesia, the largest
single open cut coal mine in the Southern Hemisphere, President
Director of Indonesia Bulk Terminal, a 12 mtpa capacity bulk coal
port and as an advisor to the development of the 1,230MW Paiton
Power station, the first IPP in Indonesia.
His career has spanned both public and private energy related
developments including directorships with the Port of Brisbane
Authority and Washington H. Soul Pattinson & Co Ltd, one of
Australia’s oldest listed companies.
Graeme was the recipient of the Asia 500 Award in 2000 and the
Coaltrans Lifetime Achievement Award
for his
contribution to the coal industry. He is a Fellow of the Australian
Institute of Company Directors and a Member of the Australian
Institute of Energy.
in 2010
Graeme currently holds the position of Non-Executive Director of
NuEnergy Gas Limited (ASX:NGY) and Non-Executive Chairman of
Indopac Holdings Limited (ASX:IDP).
Jonathan joined the Board in January 2011. Jonathan has over
twenty five years’ of corporate advisory experience across various
sectors including resources, financial services and real estate and
has experience in equity and debt capital markets, strategic
planning, capital management and corporate advisory.
Jonathan holds a Masters of Business Administration (AGSM,
University of Sydney and University of New South Wales), is a
Chartered Accountant, Fellow of Finsia, Associate of the
Insolvency Practitioners’ Association of Australia and holds a
Bachelor of Commerce (Accounting) from the University of
Wollongong.
Jonathan currently holds the position of Non-Executive Director of
Indopac Holdings Limited (ASX:IDP), Non-Executive Director of
Smoke Alarm Holdings Limited, Non-Executive Director of
NobleOak Life Limited and Non-Executive Chairman of Intrasia
Oxley Managed Investments Limited.
David Mason
BSc (Hons), MBA
Non-Executive Director –
Geology and Business
David joined the Board in January 2011. He has over thirty years’
throughout
exploration, drilling
and mining experience
Page 11
Directors’ Report
Development
Australasia.
Non-Executive Director
from 31 July 2014
William Paterson
BE (Civil) Hons
(Non-Executive Director)
Gideon Nasari
MSc, MBA
(Non-Executive Director)
Resigned 31 July 2014
David was formerly a Director of Overseas & General Limited
(ASX:OGL), a coal producer in Indonesia. Prior to this, David was
Operations Director of Haddington Resources (now Altura Mining,
ASX:AJM) a diversified resource company which acquired the
resource investment and mining service companies of Minvest
International, a group he managed.
In his prior role as General Manager of Minvest, David assisted in
the development of the Adaro Indonesia coal mine, the MHU coal
mine, a suite of exploration assets and mining service companies.
David is a member of the Remuneration Committee.
Bill has held his position as Non-Executive Director of IEC since
March 2012 and is the Chairman of the Remuneration Committee.
Bill graduated in 1964 from Auckland University with an honours
degree in civil engineering. From 1973, for 27 years, he made
major contributions as a director to the growth and success of one
of Australia’s premier engineering consultancies. In 2002, that
business became a listed engineering services provider, now
known as Worley Parsons Ltd.
Bill has extensive experience and continuing involvement in the
planning, design and implementation of a wide range of civil,
infrastructure and building projects in the commercial, industrial
and energy related sectors.
Gideon was Managing Director and Chief Executive Officer of the
National Development Corporation (NDC) from 2007 to 2014. NDC
is a statutory organisation wholly owned by the Government of
the United Republic of Tanzania with the mandate to implement
strategic industrial development projects in partnership with the
private sector.
Gideon has more than 30 years’ experience
in mining,
manufacturing and leadership. He has served as Manager, Deputy
General Manager of Tanzania Portland Cement Co Ltd and later as
Executive Director, Corporate Affairs in 1998, having risen through
the ranks from a Mining Geologist in 1978.
Simon Harvey
CA BCom
(Non-Executive Alternate
Director for Jonathan
Warrand)
Simon held the position of CFO of an ASX listed company,
NuEnergy Gas Limited (ASX: NGY) until 30 April 2015 and is now
an Associate Director of Intrasia Capital Pty Ltd.
COMPANY SECRETARY
Company Secretary
Rozanna Lee
B. Com (Hons),
LLB, GradDipACG,
AGIA, AGIS
Rozanna is a Chartered Company Secretary and has acted as
Company Secretary of IEC since October 2011. Rozanna’s career
has spanned numerous industry sectors and includes a period of
over 8 years working for an international trust company in the
Netherlands, which provided company secretarial, tax and
administration services to private and corporate clients. Rozanna
recently completed the Graduate Diploma of Applied Corporate
Governance with the Governance Institute of Australia.
Page 12
Directors’ Report
CORPORATE STRUCTURE
IEC is a public company domiciled in Australia and listed on the Australian Stock Exchange (ASX:IEC). The
Company has prepared a consolidated financial report incorporating the entities that it controlled during the
financial year, which are outlined in Note 20 of the financial statements.
INTERESTS IN THE SHARES AND OPTIONS OF THE COMPANY AND RELATED BODIES
CORPORATE
As at the date of this report, the interests of the Directors in the shares of the Company were:
Special Responsibilities
G Robertson Non-Executive Chairman1
D Mason
Non-Executive Director2,4
J Warrand
Non-Executive Director3 4
Ordinary
Shares
83,118,517
7,950,228
7,680,237
W Paterson Non-Executive Director, Chair of Remuneration
34,179,370
Committee
S Harvey
Alternate Director to J Warrand
59,000
Performance
rights
1,666,666
1,083,333
916,666
1. Mr Graeme Robertson resigned as Executive Chairman on 31 October 2014
2. Mr David Mason resigned as an Executive Director on 31 July 2014
3. Mr Jonathan Warrand resigned as Executive Director and Chief Financial Officer on 31 October 2014
4. Mr Mason and Mr Warrand continue as Non-Executive Directors. Mr Robertson continues as a Non-Executive
Chairman
During the first half of the financial year, a private placement was completed whereby 59,648,102 ordinary
shares in IEC were issued at $0.027 per share raising $1.6m before transaction costs. Each shareholder
participating in the placement received two unlisted options for nil consideration for every five ordinary shares.
The options were exercisable at any time prior to 31 August 2015 at an exercise price of $0.05 and as no
options were exercised before 31 August 2015, all options lapsed. Directors who participated in the placement
received shareholder approval at the meeting of IEC shareholders held on 30 October 2014. 1,295,698
Performance rights vested during the year.
Loss Per Share
Basic loss per share (cents)
2015
(0.05)
2014
(6.68)
NATURE OF OPERATIONS AND PRINCIPAL ACTIVITIES
The principal activities of the entities within the Consolidated Entity during the year were coal exploration,
production and power generation in Eastern Africa.
OPERATING REVIEW
The Consolidated Entity’s operations are discussed in detail in the Review of Operations which can be found on
pages 6 to 10 of this Annual Financial Report.
REVIEW OF FINANCIAL CONDITION
The Consolidated Entity recorded an operating loss after income tax $1.39m (2014 Loss: $20.78m). Income tax
benefit for the year is $0.07m (2014: $0.10m).
Page 13
Directors’ Report
CAPITAL STRUCTURE
As at the date of signing this report, the Company had 351,268,725 fully paid ordinary shares on issue.
DIVIDEND
No dividend was paid or declared during the year ended 30 June 2015.
CASH FROM OPERATIONS
The net cash inflow from operations of $0.94m was a turnaround from the net cash outflow in the previous
year of $3.39m, the improved cash performance was due to improved operating activities arising from an
increase in coal tonnes sold.
The net cash inflow from operations was funded by a US$0.5m working capital facility, increased to US$1.0m in
July 2015 combined with proceeds from a Share Purchase Plan concluded during the first half of the financial
year raising $1.53m, net of costs. The Company had a net overdraft of $0.60m at year end with $0.04m cash at
bank and a bank overdraft facility of $0.64m.
SIGNIFICANT CHANGES IN THE STATE OF AFFAIRS
There are no further significant changes to the state of affairs of the Company.
SIGNIFICANT EVENT AFTER THE BALANCE DATE
On 28 July 2015 Tancoal increased its working capital facility with KCB Bank Tanzania Limited from US$0.5m to
US$1.0m.
On 20 August 2015, the Company advised the market that its Uaroo tenements in Australia lapsed on 2 July
2015.
Other than those events outlined above, there has not arisen in the interval between the end of the financial
year and the date of this report any item, transaction or event of a material and unusual nature likely, in the
opinion of the Directors of the Company, to affect significantly the operations of the Company, the results of
those operations, or the state of affairs of the Company, in future financial years.
ENVIRONMENTAL REGULATION AND PERFORMANCE
The Company is subject to environmental regulations and is compliant with all aspects of environmental
regulation in its exploration and mining activities, including provision for environmental rehabilitation costs.
The Directors are not aware of any environmental law that is not being complied with.
SHARES UNDER OPTION
As at 30 June 2015, there were 23,859,217 unissued ordinary shares under option, these options were
exercisable at $0.05 any time before 31 August 2015. The numbers of shares under option held by each
Director are set out in the table below.
The holders of these options do not have any rights under the options to participate in any share issues of the
Company.
Expiry Date
31 August 2015*
Director
Mr G Robertson
Mr J Warrand
Mr D Mason
Mr W Paterson
Mr G Nasariᶺ
Mr S Harvey (Alternate)
Page 14
Exercise Price of Options
Total Number Under Option
$0.05
$0.05
$0.05
$0.05
$0.05
$0.05
$0.05
23,859,217
Number Under Option
5,047,702
1,737,036
510,634
2,071,748
-
-
Directors’ Report
ᶺResigned on 31 July 2014
*No options were exercised prior to 31 August 2015 and therefore lapsed on this date
MEETINGS OF DIRECTORS
Directors
Mr G Robertson
Mr J Warrand
Mr D Mason
Mr W Paterson
Mr G Nasariᶺ
Mr S Harvey (Alternate)
ᶺResigned on 31 July 2014
Attended
Available to attend
11
11
11
11
1
0
11
11
11
11
1
0
INDEMNIFICATION AND INSURANCE OF DIRECTORS AND OFFICERS
The Company has entered into Directors’ Access Indemnity and Insurance Deeds (“Deed”) with each Director.
Under the Deed, the Company indemnifies the Directors to the maximum extent permitted by law and the
Constitution against legal proceedings, damage, loss, liability, cost, charge, expense, outgoing or payment
(including legal expenses on a solicitor/client basis) suffered, paid or incurred by the Directors in connection
with the Directors being an officer of the Company, the employment of the officer with the Company or a
breach by the Company of its obligations under the Deed.
Also pursuant to the Deed, the Company must insure the Directors against liability and provide access to all
board papers relevant to defending any claim brought against the Directors in their capacity as officers of the
Company. Amounts disclosed for remuneration of directors and specified officers exclude insurance premiums
of $18,568 (2014: $23,105) paid by the Company in respect of liability for any current and former Directors,
executive officers and secretaries of the Company and its controlled entities. This amount has not been
allocated to the individuals covered by the insurance policy as, based on all available information, the Directors
believe that no reasonable basis for such allocation exists.
LOANS TO DIRECTORS AND EXECUTIVES
No loans were made to any Directors or Executives during the financial year.
CORPORATE GOVERNANCE
The Board of Directors of IEC is responsible for the corporate governance of the Company. The Board guides
and monitors the business and affairs of IEC on behalf of the shareholders by whom it is elected and to whom it
is accountable.
The Company is committed to ensuring that its systems, procedures and practices reflect a high standard of
corporate governance. The Directors believe that the corporate governance framework is critical in
maintaining high standards of corporate governance and fostering a culture that values ethical behaviour,
integrity and respect to protect security holders’ and other stakeholders’ interests at all times.
During the year ended 30 June 2015, the Company’s corporate governance framework was consistent with the
third edition of the Corporate Governance Principles and Recommendations released by the ASX Corporate
Governance Council.
The Company will now publish its Corporate Governance statement on its website rather than in its Annual
Report.
at:
www.intraenergycorp.com.au. Copies of the Group policies referred to in the Corporate Governance Statement
are also posted on the website.
statement may
downloaded
Governance
Corporate
viewed
The
be
or
Page 15
Remuneration Report
REMUNERATION REPORT (AUDITED)
This report outlines the remuneration arrangements in place for key management personnel of the Company,
in connection with the management of the affairs of the entity and its subsidiaries, during the year to 30 June
2015.
Key management personnel have authority and responsibility for planning, directing and controlling the
activities of the Company and the Consolidated Entity, including Directors of the Company and other
executives. Key management personnel comprise the Directors of the Company and executives of the Company
and the Consolidated Entity.
A. REMUNERATION POLICY
Remuneration Committee
At 30 June 2015, the Remuneration Committee (“the Committee”) comprised of three members, two Non-
Executive Directors and the Non-Executive Chairman. The Committee is chaired by a Non-Executive Director.
The function of the Committee is to assist the Board in fulfilling its corporate governance responsibilities with
respect to remuneration by reviewing and making appropriate recommendations on:
(a) Remuneration packages of Executive Directors, Non-Executive Directors and Senior Management;
(b) Employee incentive and equity-based plans including the appropriateness of performance hurdles
and total payments proposed.
Remuneration Policy
The Committee adopts the following policies on executive compensation and will bear these policies in mind
during remuneration reviews:
All key executives should be paid fair market Total Fixed Remuneration (“TFR”) for their employment, taking
into account their responsibilities and performance expectations.
All remuneration paid to Directors and Executives is valued at the cost to the Company and expensed. Prior to
August 2013 (when the Board resolved that the employee incentive scheme would be suspended), the
Company had a practice of granting shares and/or options to the Executives (being Executive Directors and
Senior Management). The shares granted were valued at the difference between the market price of those
shares and the amount paid by the Executives. Options were valued using the Black-Scholes methodology.
In 2012 the Remuneration Committee initially adopted Performance Rights as the incentive scheme for the
Executive Directors and Senior Management.
The Committee’s policy is to remunerate Non-Executive Directors at market rates for comparable companies
for time, commitment and responsibilities. The Committee determines payments to the Non-Executive
Directors and reviews their remuneration annually, based on market practice, duties and accountability.
Independent external advice is sought when needed. Fees for Non-Executive Directors are not linked to the
performance of the Consolidated Entity. The Directors are not required to hold any shares in the Company
under the Company’s Constitution. However, to align Directors’ interests with shareholder interests, the
Directors are encouraged to hold shares in the Company.
Executive Directors’ Remuneration
In considering the Company’s Remuneration Policy and levels of remuneration for Executives, the Committee
makes recommendations that seek to:
Motivate Executive Directors and Senior Management to pursue long term growth and success of the
Company within an appropriate control framework;
Demonstrate a clear correlation between Executives’ performance and remuneration; and
Align the interests of Executives with the long-term interests of the Company’s shareholders.
To the extent that the Company adopts a different remuneration structure for its Executive Directors, the
Committee shall document its reasons for the purpose of disclosure to stakeholders.
Page 16
Remuneration Report
In August 2013, the Board resolved that the employee incentive scheme would be suspended for an indefinite
period.
On 22 January 2014, Shareholders approved the issue of performance rights to the Executive Directors (as at
this date) and Senior Management of IEC in exchange for a voluntarily reduction in their cash remuneration for
the six month period from 1 January to 30 June 2014. The Executive Directors at the time voluntarily elected a
20% reduction in base remuneration (excluding superannuation) and the Senior Management elected a 10%
reduction in exchange for performance rights as a short term cash saving measure. These Executive Directors
and Senior Management were granted a fixed number of IEC performance rights based on their remuneration
deferral. The 1,295,698 performance rights issued to the Senior Management and these Executive Directors
(now Non-Executive Directors) vested in January 2015.
Non-Executive Director Remuneration
In considering the Company’s Remuneration Policy and levels of remuneration for Non-Executive Directors, the
Committee is to ensure that:
Fees paid to Non-Executive Directors are within the aggregate amount approved by shareholders and
recommendations are made to the Board with respect to the need for increases to this aggregate amount
at the Company’s Annual General Meeting;
Non-Executive Directors are remunerated by way of fees (in the form of cash);
Non-Executive Directors are not provided with retirement benefits; and
Non-Executive Directors are not entitled to participate in equity-based remuneration schemes designed for
Executives without due consideration and appropriate disclosure to the Company’s shareholders.
To the extent that the Company adopts a different remuneration structure for its Non-Executive Directors, the
Committee shall document its reasons for the purpose of disclosure to stakeholders.
Incentive Scheme
To qualify for the Scheme a person must be an employee and have worked with the Company for a minimum
of 6 months (the only exception is to attract Senior Management or a Head of Business and is subject to the
approval of the Remuneration Committee).
The incentive scheme has two components, namely, the Short Term Incentive (“STI”) and Long Term Incentive
(“LTI”) respectively. This is to ensure that the key Executives have short and long term interests of the Company
in mind in their decision making.
In August 2013, the Board resolved that the employee incentive scheme would be suspended for an indefinite
period.
Executive Management
For Executive Directors the performance conditions are 50% external, 50% internal.
Payout of LTI incentive is dependent on the combined score of both the external and internal measures.
STI: 40% of TFR, payable in lump sum annually when an Executive has satisfactorily achieved his or her
performance targets set by the Company.
LTI: 60% of TFR, This is in a form of an equity incentive using Performance Rights as an instrument. Payout will
be based on the performance of the entire management team in achieving exceptional performance for the
Company and its shareholders.
Management
The Management team performance conditions are 1/3 satisfaction of individual performance (agreed Key
Performance Indicators), 1/3 external measure and 1/3 internal measure. The annual individual performance
targets are agreed at the June board meeting.
External Measure
The vesting of Performance Rights is subject to the Company’s Total Shareholder Return (“TSR”) outperforming
the S&P/ASX300 Energy Index (ASX: XEK) over the vesting period.
Page 17
Remuneration Report
Percentile Ranking
50th
> 51st but < 60th
> 60th but < 68th
> 68th but < 76th
> 76th
Percentage of Tranche 1 (T1) Performance Rights to
Vest (50% component)
Nil
30%
60%
90%
100%
IEC’s TSR over the vesting period is ranked against the constituent companies of the S&P/ASX300 Energy Index.
T1 Performance Rights will vest based on the IEC TSR Percentile Ranking achieved in this table. The Peer Group
is established on the Grant Date as all companies within the S&P/ASX300 Energy Index.
Any companies within the Peer Group which are delisted as at the vesting date are removed from the final
analysis.
The Company reserves the right to amend the Peer Group at any time prior to the vesting date.
Internal Measure
The internal measure uses earnings per share (“EPS”) as the indicator.
The annual EPS target is set by the Board and agreed by the Committee after approval of the following year’s
Group budget. The vesting of these Rights is subject to achieving the budgeted earnings per share (“Budget
EPS”) as determined by the Board over the vesting period. That is, the sum of three years’ EPS ending 30 June.
The Budget EPS is determined by the Board and takes into account market expectations, economic and
industry conditions, meeting financial objectives and the past performance of the Company. EPS is as defined
under AIFRS for the relevant period.
Performance against budget EPS
Percentage of Tranche 2 (T2) Performance Rights to
Vest (50% component)
< 100%
> 100% but < 107%
> 107% but < 114%
> 114% but < 120%
> 120%
Nil
25%
50%
75%
100%
Page 18
Remuneration Report
KEY MANAGEMENT PERSONNEL
During the year ended 30 June 2015 the Key Management Personnel (“KMP”) of IEC were:
Name
Mr Graeme Robertson1
Mr Jonathan Warrand2
Mr David Mason3
Mr William Paterson
Mr Gideon Nasari4
Mr Tarn Brereton
Position Held
Non-Executive Chairman
Non-Executive Director
Non-Executive Director
Non-Executive Director and Chair of Remuneration Committee
Non-Executive Director
Acting CEO (Appointed 31 October 2014. Was Chief Operating
Officer until 31 October 2014)
Mr Simon Harvey
Alternate Director to J Warrand
1Mr Graeme Robertson resigned as Executive Chairman on 31 October 2014, Mr Robertson continues as a
Non-Executive Chairman
2Mr Jonathan Warrand resigned as Executive Director and Chief Financial Officer on 31 October 2014, Mr
Warrand continue as a Non-Executive Director
3Mr David Mason resigned as an Executive Director on 31 July 2014, Mr Mason continue as a Non-Executive
Director
4Mr Nasari resigned from the Board on 31 July 2014
Page 19
Remuneration Report
B. DETAILS OF REMUNERATION
2015
Salary and fees
$
Cash bonus
$
Non-monetary benefits
$
Superannuation
$
Retirement Benefits
$
Long service leave
$
Shares
$
Options
$
Incentive plans¹
$
TOTAL
$
Short-term
Post-Employment
Long-term
Share-based Payment
% of Remuneration
granted as options
%
NON-EXECUTIVE DIRECTORS
Mr G Nasari^
Mr W Paterson
Mr G Robertson*
Mr D Mason*
Mr J Warrand*
Mr S Harvey
3,500
65,000
123,334
114,772
148,609
–
KEY MANAGEMENT PERSONNEL
Mr T Brereton
Total
299,222
754,437
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
2,917
7,953
–
–
–
–
33,750
62,785
62,785
–
–
10,870
159,320
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
62,180
49,466
44,701
–
3,500
65,000
219,264
229,940
264,048
–
15,582
171,929
314,804
1,096,556
–
–
–
–
–
–
–
–
^Resigned on 31 July 2014. *Mr David Mason resigned as an Executive Director on 31 July 2014. Mr Graeme Robertson resigned as Executive Chairman on 31 October 2014. Mr Jonathan Warrand resigned as Executive Director and Chief Financial
Officer on 31 October 2014. Mr Mason and Mr Warrand continue as Non-Executive Directors. Mr Robertson continues as a Non-Executive Chairman.
Short-term
Post-Employment
Long-term
Share-based Payment
2014
Salary and fees
$
Cash bonus
$
Non-monetary benefits
$
Superannuation
$
Retirement Benefits
$
Long service leave
$
Shares
$
Options
$
Incentive plans
$
NON-EXECUTIVE DIRECTORS
Mr G Nasari
Mr W Paterson
EXECUTIVE DIRECTORS
Mr G Robertson
Mr D Mason
Mr J Warrand
Mr S Harvey
45,680
50,000
186,500
226,555
226,555
–
KEY MANAGEMENT PERSONNEL
Mr T Brereton
Total
258,316
993,606
–
–
–
–
–
–
–
–
4,621
4,621
4,621
4,621
4,621
–
-
–
–
–
23,284
23,284
–
-
23,105
46,568
–
–
–
–
–
–
–
–
¹ Incentive plan amounts relate to FY12 and FY13 LTI/STI schemes and FY14 incentives granted in lieu of pay reductions.
Page 20
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
TOTAL
$
50,301
54,621
276,034
317,157
313,593
–
–
–
84,913
62,697
59,133
–
14,606
221,349
272,922
1,284,628
% of Remuneration
granted as options
%
–
–
–
–
–
–
–
–
Remuneration Report
C. CASH BONUSES
There were no cash bonuses paid during the year.
D. SHARE BASED PAYMENT BONUSES
There were no share-based payment bonuses paid during the year.
E. OPTIONS ISSUED AS PART OF REMUNERATION
No options were issued as remuneration during the 2015 year. In 2012 the Committee adopted Performance
Rights as the incentive scheme for the Executive Directors and Senior Management. In August 2013, the Board
resolved that the employee incentive scheme would be suspended for an indefinite period.
F. EMPLOYMENT CONTRACTS OF DIRECTORS AND EXECUTIVES
Until 31 October 2014, Mr Graeme Robertson was employed by the Company as Executive Chairman which
could be terminated by either party by giving not less than three months’ notice. His remuneration was
$135,000 per annum. Mr Robertson also received Chairman’s fees of $65,000 per annum.
Mr Robertson transferred to a non-executive role on 31 October 2014 and continued on the Board as Non-
Executive Chairman. He was entitled to receive three months’ termination payment. His Non-Executive
Chairman’s fees are $85,000 per annum.
Mr Jonathan Warrand was employed by the Company as Executive Director and Chief Financial Officer which
could be terminated by either party by giving not less than three months’ notice. Mr Warrand received a salary
of $275,000 including superannuation from the Company.
Mr Warrand transferred to a non-executive role on 31 October 2014 and continued on the Board as Non-
Executive Director. He was entitled to receive three months’ termination payment in respect of his role as an
Executive Director and Chief Financial Officer. His Non-Executive Director’s fees are $85,000 per annum.
Intrasia Capital Pty Ltd, a related entity of Mr Warrand and Mr Robertson, receives monthly management
services fees (representing administration, investor relations, accounting and general office support) from IEC.
Fees of $186,000 were paid to Intrasia Capital Pty Ltd during the year ended 30 June 2015. The fees are
reviewed at least quarterly and approved by Directors of IEC not related to Mr Warrand and Mr Robertson.
Mr David Mason was employed as Executive Director – Exploration and Business Development for an indefinite
period until terminated by either party by giving not less than three months’ notice. Mr Mason received a
salary of $275,000 as an employee including superannuation.
Mr Mason transferred to a non-executive role on 31 August 2014 and continued on the Board as Non-Executive
Director. He was entitled to receive three months’ termination payment. His Non-Executive Director’s fees are
$85,000 per annum.
Mr Tarn Brereton is employed as Chief Operating Officer for an indefinite period until terminated by either
party by giving not less than three months’ notice. Mr Brereton is paid US$250,000 in total as an employee.
During the year, Mr Tarn Brereton was appointed to act as Acting Chief Executive Officer for IEC. This was
effective on 31 October 2014. The key terms of Mr Brereton’s remuneration package are as follows:
Total Fixed Remuneration (TFR) of US$250,000 (excluding superannuation contributions), subject to
annual review;
Eligibility to participate in the Company’s incentive scheme as approved by the Board from time to
time;
Each employment contract of Executive Directors and Executives includes:
Three months’ notice to be given by the Director;
Termination payments equivalent to six months’ salary package;
Base total fixed remuneration (including superannuation) to be reviewed annually;
Provision of annual leave, accrued balance payable upon termination;
Provision made for the awarding of bonuses at the recommendation of the Committee (“STI”); and
Page 21
Remuneration Report
Provision made for the award of performance share rights (“LTI”), subject to shareholder approval.
No payments were made under an LTI or STI scheme for the year ended 30 June 2015.
G. KEY MANAGEMENT PERSONNEL COMPENSATION - OPTIONS
Granted
during the
year as
compensati
on
Balance at
beginning of
year
Exercised
during the
year
Lapsed /
cancelled
during the
year
Balance at
the end of
the year
Vested and
exercisable
–
–
–
–
–
–
–
-
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
-
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
2015
Mr G Robertson
Mr J Warrand
Mr D Mason
Mr G Nasari^
Mr W Paterson
Mr T Brereton
Mr S Harvey
Total
2014
Lapsed /
cancelled
during the
year
(3,000,000)
(1,000,000)
(1,500,000)
(800,000)
–
–
–
(6,300,000)
Balance at
the end of
the year
Vested and
exercisable
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
Granted
during the
year as
compensati
on
Balance at
beginning of
year
Exercised
during the
year
Mr G Robertson
3,000,000
Mr J Warrand
Mr D Mason
Mr G Nasari
Mr W Paterson
Mr C Hartz
Mr F Lung
Total
1,000,000
1,500,000
800,000
–
–
–
6,300,000
^Resigned on 31 July 2014
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
Page 22
Remuneration Report
H. KEY MANAGEMENT PERSONNEL COMPENSATION – FULLY PAID SHARES
The numbers of shares in the Company held during the financial year or at time of resignation by each Director
or KMP of IEC are set out below:
2015
Balance at
beginning of
year
Granted during
the year as
compensation
Received
during the year
on exercise of
options
Mr G Robertson
70,345,741
Mr J Warrand
Mr D Mason
2,835,930
6,421,923
Mr W Paterson
29,000,000
Mr G Nasari^
Mr T Brereton
Mr S Harvey
–
–
59,000
Total
108,662,594
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
Changes during
the year*
Balance at the
end of the year
12,772,776
83,118,517
4,844,307
1,528,305
7,680,237
7,950,228
5,179,370
34,179,370
–
–
–
–
–
59,000
24,324,758
132,987,352
*Changes during the year represent shares acquired or sold by Directors or their associates
^Resigned on 31 July 2014
2014
Balance at
beginning of
year
Granted during
the year as
compensation
Received
during the year
on exercise of
options
Mr G Robertson
61,278,109
Mr J Warrand
Mr D Mason
2,224,179
5,488,074
Mr W Paterson
24,467,248
Mr G Nasari
Mr T Brereton
–
–
Mr S Harveyᶺ
59,000
Total
93,516,610
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
Changes during
the year *
Balance at the
end of the year
9,067,632
70,345,741
611,751
933,849
2,835,930
6,421,923
4,532,752
29,000,000
–
–
–
–
–
59,000
15,145,984
108,662,594
* Changes during the year represent shares acquired or sold by Directors or their associates
ᶺ At time of appointment as Alternate Director
I. KEY MANAGEMENT PERSONNEL COMPENSATION – PERFORMANCE RIGHTS
The numbers of performance rights in the Company held during the financial year or at time of resignation by
each Director or KMP of IEC, including their personally related parties, are set out below:
Page 23
Remuneration Report
2015
Balance at
beginning of
year
Granted during
the year as
compensation
Vested during
the year
Lapsed/cancell
ed during the
year
Balance at the
end of the year
Mr G Robertson
2,832,240
Mr J Warrand
Mr D Mason
Mr W Paterson
Mr G Nasariᶺ
Mr T Brereton
Mr S Harvey
Total
1,889,784
2,004,922
-
-
532,305
-
7,259,251
ᶺResigned on 31 July 2014
-
-
-
-
-
-
-
-
135,000
251,716
251,716
–
–
140,242
–
1,030,574
1,666,666
721,402
669,873
916,666
1,083,333
–
–
–
–
–
–
392,063
–
778,674
2,421,849
4,058,728
2014
Balance at
beginning of
year
Granted during
the year as
compensation
Vested during
the year
Lapsed/cancell
ed during the
year
Balance at the
end of the year
Mr G Robertson
2,697,240
Mr J Warrand
Mr D Mason
Mr W Paterson
Mr G Nasari
1,638,068
1,753,206
–
–
135,000
251,716
251,716
–
–
Mr T Brereton
392,063*
140,242
Mr S Harvey
Total
–
–
6,480,577
778,674
* At time of appointment as Chief Operating Officer
End of Remuneration Report
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
2,832,240
1,889,784
2,004,922
–
–
532,305
–
7,259,251
Page 24
Auditor’s Independence
NON-AUDIT SERVICES
The Board of Directors is satisfied that the provision of non-audit services during the year is compatible with
the general standard of independence for auditors imposed by the Corporations Act 2001. The Directors are
satisfied that the services disclosed below did not compromise the external auditor’s independence for the
following reasons:
all non-audit services are reviewed and approved by the Board prior to commencement to ensure they
do not adversely affect the integrity and objectivity of the auditor; and
the nature of the services provided do not compromise the general principles relating to auditor
independence as set out in the Institute of Chartered Accountants in Australia and APES110 Code of
Ethics for Professional Accountants.
The following fees for non-audit services were paid to an affiliated entity of the external auditors during the
year ended 30 June 2015:
Taxation and other advisory services: $41,000
LEAD AUDITOR’S INDEPENDENCE DECLARATION
The lead auditor’s independence declaration is set out on page 24 and forms part of the Directors’ Report for
the financial year ended 30 June 2015.
ROUNDING OFF
The Group is of a kind referred to in ASIC Class Order 98/100 dated 10 July 1998 and in accordance with that
Class Order, amounts in the financial report and Directors’ report have been rounded off to the nearest
thousand dollars, unless otherwise stated.
This Directors’ Report, Remuneration Report and Corporate Governance Statement are made with a resolution
of the Directors.
GRAEME ROBERTSON
Chairman
Dated this 30 September 2015
Page 25
Directors’ Declaration
1. In the opinion of the Directors:
(a) the accompanying financial statements, notes and additional disclosures are in accordance with the
Corporations Act 2001 including:
(i) giving a true and fair view of the Company and Group’s financial position as at 30 June 2015 and its
performance for the financial year ended on that date; and
(ii) complying with Accounting Standards (includes the Australian Accounting Interpretations), the
Corporations Regulations 2001 and any other mandatory professional reporting requirements.
(b) as disclosed in note 1(A) there are reasonable grounds to believe that the Company will be able to pay
its debts as and when they become due and payable.
(c) the financial statements and notes thereto are in accordance with International Financial Reporting
Standards issued by the International Accounting Standards Board.
2. This declaration has been made after receiving the declarations required to be made to the Directors in
accordance with Section 295A of the Corporations Act 2001 for the financial year ended 30 June 2015.
The declaration is signed in accordance with a resolution of the Board of Directors.
GRAEME ROBERTSON
Chairman
Dated this 30 September 2015
Page 27
Consolidated Statement of Comprehensive Income
FOR THE YEAR ENDED 30 JUNE 2015
CONSOLIDATED
Sales revenue
Net cost of production
Gross Profit
Other income
Foreign exchange gain / (loss)
Compliance and regulatory expenses
Legal and professional expenses
Depreciation and amortisation
Remuneration and employee expenses
Exploration expense
Project expenditure
Impairment of fixed assets
Impairment of tenements
Share based payments
Other expenses
Share of loss of equity-accounted investees net of tax
Finance income
Finance expenses
Loss on sale of asset
Loss Before Income Tax
Income tax benefit
Net Loss For The Period
Other Comprehensive Income
Foreign currency translation (loss)/gainᶺ
Total Comprehensive Loss for the Period
Net Loss for the Period Attributable to:
Shareholders of IEC
Non-controlling interest
Total Comprehensive Loss for the Period Attributable to:
Shareholders of IEC
Non-controlling interest
Loss per share
NOTES
2
3
11
10
4
2015
$’000S
16,555
(9,752)
6,803
1,031
229
(343)
(1,044)
(1,288)
(2,761)
(217)
(232)
-
(126)
(206)
(2,555)
(77)
2
(532)
(142)
(1,458)
71
(1,387)
(1,457)
(2,844)
(1,745)
358
(1,387)
(3,119)
275
(2,844)
2014
$’000S
10,867
(8,978)
1,889
50
(56)
(78)
(976)
(1,392)
(2,039)
(785)
(1,295)
(204)
(13,413)
(322)
(1,775)
-
15
(503)
-
(20,884)
107
(20,777)
(2,005)
(22,782)
(18,845)
(1,932)
(20,777)
(20,686)
(2,096)
(22,782)
Loss per share (cents per share, basic and diluted)
7
(0.05)
(6.68)
ᶺ Item that may be classified subsequently to Statement of Comprehensive Income
The Consolidated Statement of Comprehensive Income should be read in conjunction with the accompanying notes to the
Financial Statements.
Page 30
Consolidated Statement of Financial Position
AS AT 30 JUNE 2015
CONSOLIDATED
2015
$’000S
2014
$’000S
NOTES
Assets
Current Assets
Cash and cash equivalents
Inventories
Trade and other receivables
Assets held for sale
Total Current Assets
Non-Current Assets
Other receivables
Equity accounted investments
Property, plant and equipment
Mine development costs
Exploration expenditure
Total Non-Current Assets
Total Assets
Liabilities
Current Liabilities
Bank overdraft
Trade and other payables
Employee benefits
Interest bearing liabilities
Liabilities held for sale
Total Current Liabilities
Non-Current Liabilities
Other payables
Provisions
Interest bearing liabilities
Total Non-Current Liabilities
Total Liabilities
Net Assets
Equity
Issued capital
Reserves
Accumulated losses
Total equity attributed to equity holders of the Company
Non-controlling interest
Total Equity
8
9
10
11
12
13
14
15
16
10
17
16
18
21
40
2,185
2,529
-
4,754
196
989
9,859
7,071
513
18,628
23,382
644
7,260
87
2,429
-
10,420
196
550
805
1,551
11,971
11,411
69,387
2,979
(56,075)
16,291
(4,880)
11,411
88
1,701
2,518
2,458
6,765
160
-
10,059
6,442
375
17,036
23,801
522
5,386
47
2,147
1,056
9,158
193
444
1,486
2,123
11,281
12,520
67,858
4,147
(54,330)
17,675
(5,155)
12,520
The Consolidated Statement of Financial Position should be read in conjunction with the accompanying notes to the
Financial Statements.
Page 31
Consolidated Statement of Cash Flows
FOR THE YEAR ENDED 30 JUNE 2015
Cash Flows from Operating Activities
Receipts from Customers
Payments to Creditors and Suppliers
Interest Received
Interest paid
Tax (paid)/received
Net cash provided/(used) in operating activities
25
Cash Flows from Investing Activities
Mine Development and Capitalised Exploration Costs
Purchase of property, plant and equipment
Contribution to equity accounted investment
Net cash provided/(used) in investing activities
Cash Flows from Financing Activities
Proceeds from issue of shares and options
Share and option issue costs
Proceeds from borrowings
Repayment of borrowings
Net cash provided/(used) in financing activities
Net (decrease)/increase in cash and cash equivalents
Cash and cash equivalents at beginning of year
Effects of exchange rate changes on cash
Cash and Cash Equivalents/(Net Overdraft) at end of year
Cash and cash equivalents
Bank overdrafts used for cash management purposes
Cash and Cash equivalents/(Net Overdraft) in the Statement of
Cash Flows
CONSOLIDATED
2015
$’000S
2014
$’000S
NOTES
17,389
(16,076)
2
(532)
161
944
(578)
(767)
(125)
13,320
(16,329)
15
(503)
107
(3,390)
(1,178)
(1,384)
-
(1,470)
(2,562)
1,610
(81)
5,723
(6,796)
456
(70)
(434)
(100)
(604)
40
(644)
(604)
1,531
(64)
1,161
(1,617)
1,011
(4,941)
4,437
70
(434)
88
(522)
(434)
The Consolidated Statement of Cash Flows should be read in conjunction with the accompanying notes to the Financial
Statements.
Page 32
Consolidated Statement of Changes in Equity
FOR THE YEAR ENDED 30 JUNE 2015
CONSOLIDATED
At 1 July 2014
ISSUED
CAPITAL
$’000S
ACCUMULATED
LOSSES
PERFORMANCE
RIGHTS
$’000S
$’000S
OPTION
RESERVE
$’000S
FOREIGN CURRENCY
TRANSLATION
RESERVE
TOTAL
NON-CONTROLLING
INTEREST
$’000S
$’000S
67,858
(54,330)
589
2,216
1,342
17,675
$’000S
(5,155)
TOTAL EQUITY
$’000S
12,520
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD
Loss for the year
Other Comprehensive Income
Foreign currency translation differences
Total Other Comprehensive Income
TRANSACTIONS WITH OWNERS RECORDED DIRECTLY INTO EQUITY
Shares issued during the year
Share raising cost (net of tax)
Performance rights granted
1,610
(81)
(1,745)
(1,745)
Balance at 30 June 2015
69,387
(56,075)
206
795
(1,745)
358
(1,387)
(1,374)
(1,374)
(1,374)
(3,119)
1,610
(81)
206
(83)
275
2,216
(32)
16,291
(4,880)
CONSOLIDATED
At 1 July 2013
66,391
(36,806)
267
2,216
3,183
35,251
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD
Loss for the year
Other Comprehensive Income
Foreign currency translation differences
Total Other Comprehensive Income
TRANSACTIONS WITH OWNERS RECORDED DIRECTLY INTO EQUITY
Shares issued during the year
Share raising cost (net of tax)
Performance rights granted
Change in ownership of subsidiary
1,531
(64)
(18,845)
(18,845)
1,321
Balance at 30 June 2014
67,858
(54,330)
322
589
(18,845)
(1,841)
(1,841)
(1,841)
(20,686)
1,531
(64)
322
1,321
17,675
2,216
1,342
(1,738)
(1,932)
(164)
(2,096)
(1,321)
(5,155)
The Consolidated Statement of Changes in Equity should be read in conjunction with the accompanying notes to the Financial Statements.
Page 33
(1,457)
(2,844)
1,610
(81)
206
11,411
33,513
(20,777)
(2,005)
(22,782)
1,531
(64)
322
12,520
Notes to the Financial Statements
FOR THE YEAR ENDED 30 JUNE 2015
1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES
Intra Energy Corporation Limited (“the Company”) is a company limited by shares, incorporated and domiciled in
Australia. The shares of Intra Energy Corporation Limited are publically traded on the Australian Stock Exchange. The
consolidated financial statements for the year ended 30 June 2015 comprise the Company and its controlled entities
(together referred to as “the Group” or “Consolidated Entity”) and the Group’s interests in associates and jointly
controlled entities. The Company is a for-profit entity and primarily is involved in the mining and sale of coal.
The consolidated financial statements were approved by the Board and authorized for issue on 30 September 2015.
A. Going Concern
The consolidated financial statements have been prepared on a going concern basis, which assumes that the Group
will be able to continue trading, realise its assets and discharge its liabilities in the ordinary course of business for a
period of at least 12 months from the date that these financial statements are approved.
The Directors note that:
The Group generated a loss after tax for the year of $1.39m (2014:$20.78m) primarily as a result of exploration
and project expenditure of $0.58m, non-cash depreciation and amortisation charges of $1.29m together with
continued but decreased operating losses after corporate overheads; and
As at balance date, the Group's current liabilities exceeded its current assets by $5.7m. The deficit in net current
assets includes a $0.6m overdraft payable to KCB Bank of Tanzania (“KCB”) and $1.6m payable to the KCB under
loan facilities which expire in November 2017 although these facilities can be called at any time.
In assessing the appropriateness of using the going concern assumption, the Directors have:
Considered the funding requirements of the business given the current operating and cash flow forecasts of the
Group. The market conditions for coal supply are very competitive and create pressure on pricing but coal sales
are still expected to increase as the Group continues to respond to growing demand in the East African cement
and industrial markets segment. As Tancoal continues to implement productivity improvements and further
initiatives to expand equipment capacity to produce more coal, the working capital position of the Company is
expected to improve in the longer term.
Implemented a number of cost saving initiatives to preserve working capital.
Retained their confidence in the strategic value of the Group as it develops its coal and power station projects
across East Africa. IEC is the dominant and growing coal miner and supplier to industrial energy users in the
Eastern African region and is advancing coal-fired power generation projects in Malawi and Tanzania. Eastern
Africa is one of the fastest growing regions in the world with national growth rates between 5% and 8%. In 2015,
IEC supplied 85% of its production to Tanzania and 15% to Kenya and Malawi. Approximately 65% was supplied
to the cement industry, 10% to textile manufacturers, 13% to paper and ceramics industries and the remainder
to processing plants.
Acknowledged the interest received in the 120MW “Pamodzi” coal fired power station project in Malawi and the
potential for the power station to become a future customer.
Recognised that the interest bearing liabilities relating to the loans from the KCB and hire purchase equipment
providers are secured against the Group’s mining equipment.
Noted JORC compliant resources of 62 million tonnes in Malawi and 423 million tonnes at the Tancoal mine in
Tanzania.
After considering the above factors, the Directors have concluded that the use of the going concern assumption is
appropriate. However if improved coal sales, cost saving initiatives or working capital improvements are not achieved
or if the KCB Bank of Tanzania demands repayment of their combined $2.2 million debt facility, the Group will be
required to raise further debt or equity or divest assets to continue as a going concern.
Whilst the Directors remain confident in the Group’s ability to access further working capital through debt, equity or
asset sales if required, there remains material uncertainty as to whether the Group will continue as a going concern.
Had the going concern basis not been used, adjustments would need to be made relating to the recoverability and
classification of certain assets, and the classification and measurement of certain liabilities to reflect the fact that the
Page 34
Notes to the Financial Statements
FOR THE YEAR ENDED 30 JUNE 2015
1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONT.)
Group may be required to realise its assets and settle its liabilities other than in the ordinary course of business, and
at amounts different from those stated in the consolidated financial statements.
B. Statement of compliance and basis of preparation
The financial report is a general purpose financial report that has been prepared in accordance with Australian
Accounting Standards, Australian Accounting Interpretations, other authoritative pronouncements of the Australian
Accounting Standards Board and the Corporations Act 2001.
The financial report of Intra Energy Corporation Limited and controlled entities (“IEC”, “the Company”, “the Group” or
“Consolidated Entity”), and IEC as an individual parent entity (“IEC Parent” or “Parent Entity”) complies with all
Australian equivalents to International Financial Reporting Standards (AIFRS) and International Financial Reporting
Standards (IFRS).
b.i Reporting Basis and Conventions
The financial report has been prepared on an accruals basis and is based on historical costs other than financial assets
and financial liabilities for which the fair value basis of accounting has been applied.
The following is a summary of the material accounting policies adopted by the Company in the preparation of the
financial report. The accounting policies have been consistently applied, unless otherwise stated.
Separate financial statements for IEC Parent, as an individual entity are no longer presented as a consequence of a
change to the Corporations Act 2001, however, required financial information for IEC Parent as an individual entity is
included in Note 30.
b.ii New Accounting Standards
The Group applied the following standards and amendments, including any consequential amendments to other
standards for the first time for the annual reporting period commencing 1 July 2014.
AASB 2013-2 Offsetting Financial Assets and Financial Liabilities
AASB 2013-3 Amendments to AASB 136 – Recoverable Amount Disclosures for Non-Financial Assets
AASB 2014-1 Part A: Annual improvements 2010-2012 and 2011-2013 cycles
ASX Corporate Governance Principles and Recommendations
There were no significant impacts arising from accounting standards or interpretations adopted in these Financial
Statements.
b.iii New Accounting Standards and Interpretations that are not yet mandatory
A number of new accounting standards and interpretations have been published that are not mandatory for 30 June
2015 reporting periods and have not been early adopted by the Group.
Certain new accounting standards and interpretations have been published that are not mandatory for 30 June 2015
reporting periods. The Group’s assessment of the impact of these new standards and interpretations is set out below.
The Group does not plan to adopt these standards early.
AASB 9, published in July 2014, replaces the existing guidance in AASB 139 Financial Instruments: Recognition and
Measurement. AASB 9 includes revised guidance on the classification and measurement of financial instruments,
including a new expected credit loss model for calculating impairment on financial assets, and the new general hedge
accounting requirements. It also carries forward the guidance on recognition and derecognition of financial
instruments from AASB 139. AASB 9 is effective for annual reporting periods beginning on or after 1 January 2018,
with early adoption permitted. As the Group does not have hedging arrangements, this will not have a significant
impact to the Group or its results.
AASB 15 Revenue from Contracts with Customers, AASB 15 establishes a comprehensive framework for determining
whether, how much and when revenue is recognised. It replaces existing revenue recognition guidance, including
AASB 118 Revenue and AASB 111 Construction Contracts. AASB 15 is effective for annual reporting periods beginning
on or after 1 January 2018, with early adoption permitted. The Group does not consider that this will have a
significant impact to the Group or its results.
There are no other standards that are not yet effective and that are expected to have a material impact on the entity
in the current or future reporting periods and on foreseeable future transactions.
Page 35
Notes to the Financial Statements
FOR THE YEAR ENDED 30 JUNE 2015
1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONT’D)
C.
Principles of consolidation
c.i Business combinations
The purchase method of accounting is used to account for all business combinations, including business combinations
involving entities or businesses under common control, regardless of whether equity instruments or other assets are
acquired.
Cost is measured as the fair value of the assets given, equity instruments issued or liabilities incurred or assumed at
the date of exchange plus costs directly attributable to the acquisition. Where equity instruments are issued in an
acquisition, the fair value of the instruments is their published market price as at the date of exchange unless, in rare
circumstances, it can be demonstrated that the published price at the date of exchange is an unreliable indicator of
fair value and that other evidence and valuation methods provide a more reliable measure of fair value. Transaction
costs arising on the issue of equity instruments are expensed in the period incurred.
Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured
initially at their fair values at the acquisition date, irrespective of the extent of any non-controlling interest. The
excess of the cost of acquisition over the fair value of the Group’s share of the identifiable net assets acquired is
recorded as goodwill. If the cost of acquisition is less than the Group’s share of the fair value of the identifiable net
assets of the subsidiary acquired, the difference is recognised directly in the Consolidated Statement of
Comprehensive Income, but only after a reassessment of the identification and measurement of the net assets
required.
Where settlement of any part of cash consideration is deferred, the amounts payable in the future are discounted to
their present value as at the date of exchange. The discount rate used is the entity’s incremental borrowing rate,
being the rate at which a similar borrowing could be obtained from an independent financier under comparable terms
and conditions.
c.ii Subsidiaries
Subsidiaries are entities controlled by the Group. The financial statements of subsidiaries are included in the
consolidated financial statements from the date that control commences until the date that control ceases.
The accounting policies of subsidiaries have been changed when necessary to align them with the policies adopted by
the Group.
c.iii Transactions eliminated on consolidation
All balances and transactions, arising from transactions between entities within the group are eliminated in preparing
the consolidated financial statements.
c.iv Non-controlling interests
Non-controlling interests are measured at their proportionate share of the acquiree’s identifiable net assets at the
acquisition date. Changes in the Group’s interest in a subsidiary that do not result in a loss of control are accounted
for as equity transactions.
c.v Equity accounted investments
A joint venture is an arrangement in which the Group has joint control whereby the Group has rights to the net assets
of the arrangement, rather than rights to its assets and obligations for its liabilities. The financial statements include
the Group’s share of the total recognised gains and losses on an equity accounted basis subsequent to initial
recognition at cost, which includes transaction costs.
When the Group’s share of losses exceeds its interest in a joint venture, the Group’s carrying amount is reduced to
$nil and recognition of further losses is discontinued except to the extent that the Group has incurred legal or
constructive obligations or made payments on behalf of a joint venture.
Unrealised gains on transactions between the Group and its joint ventures are eliminated to the extent of the Group’s
interest in the joint ventures. Unrealised losses are also eliminated unless the transaction provides evidence of an
impairment of the asset transferred. Accounting policies of joint ventures have been changed where necessary to
ensure consistency with the policies adopted by the Group.
Associates are all entities over which the group has significant influence but not control or joint control, generally
accompanying a shareholding of between 20% and 50% of the voting rights. Investments in associates are accounted
for using the equity method of accounting, after initially being recognised at cost.
Page 36
Notes to the Financial Statements
FOR THE YEAR ENDED 30 JUNE 2015
1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONT’D)
D.
Income tax
Tax expense comprises current and deferred tax and is recognised in the statement of profit or loss or the statement
of comprehensive income according to the accounting treatment of the related transaction.
Current tax is the expected tax payable or receivable on the taxable income or loss for the year and any adjustment to
tax in respect of previous years.
Deferred tax expense represents the tax expense in respect of the future tax consequences of recovering or settling
the carrying amount of an asset or liability. Both are calculated using tax rates for each jurisdiction, enacted or
substantially enacted at the reporting date, and for deferred tax those that are expected to apply when the asset is
realised or the liability is settled.
Deferred tax is recognised in respect of temporary differences between the carrying amounts of assets and liabilities
for financial reporting purposes and the amounts used for taxation purposes. Deferred tax is not recognised for:
arising on the initial recognition or assets or liabilities, other than on a business combination, that affect neither
accounting or taxable profit;
arising from the recognition of goodwill; and
relating to investments in subsidiaries to the extent that they will not reverse in the foreseeable future.
E. Property, Plant and Equipment
Each class of plant and equipment is carried at cost less any accumulated depreciation and impairment losses.
Plant and equipment are measured on the cost basis. The carrying amount of plant and equipment is reviewed
annually by Directors to ensure it is not in excess of the recoverable amount from these assets. The recoverable
amount is assessed on the basis of the expected net cash flows which will be received from the assets’ employment
and subsequent disposal. The expected net cash flows have been discounted to their present values in determining
recoverable amounts.
e.i Depreciation
The depreciable amount of all fixed assets is depreciated on a straight-line basis over the asset’s useful life to the
consolidated group commencing from the time the asset is held ready for use.
The useful lives used for each class of depreciable asset are:
Class of fixed asset
Mining Plant and Equipment
Motor Vehicles
Office Equipment
Computer Equipment and Software
Leasehold Improvements
Useful life
10 to 15 years
10 years
8 years
3 years
25 years
The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at each reporting date.
An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying amount is
greater than its estimated recoverable amount.
Gains and losses on disposals are determined by comparing proceeds with the carrying amount. These gains or losses
are included in the profit or loss.
F. Exploration, evaluation and acquisition expenditure
Acquisition costs are accumulated in respect of each separate area of interest. Acquisition costs are carried forward
where right of tenure of the area of interest is current and they are expected to be recouped through sale or
successful development and exploitation of the area of interest or, where exploration and evaluation activities in the
area of interest have not yet reached a stage that permits reasonable assessment of the existence of economically
recoverable reserves. Where an area of interest is abandoned or the Directors decide that it is not commercial, any
Page 37
Notes to the Financial Statements
FOR THE YEAR ENDED 30 JUNE 2015
1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONT’D)
accumulated acquisition costs in respect of that area are written off in the financial period the decision is made. Each
area of interest is also reviewed at the end of each accounting period and accumulated acquisition costs written off to
the extent that they will not be recoverable in the future. Amortisation is not charged on acquisition costs carried
forward in respect of areas of interest in the development phase until production commences.
G.
Inventories
Inventories are measured at the lower of cost and net realisable value. The cost of inventories is based on average
costs over the relevant period of production and includes expenditure in accumulating the inventories, production
costs and other costs incurred in bringing them to their existing location and condition. Stockpile tonnages are verified
by periodic surveys.
H. Overburden removal costs
Overburden and other mine waste materials are often removed during the initial development of a mine site in order
to access the mineral deposit. This activity is referred to as development stripping. The directly attributable costs are
initially capitalised as mine development costs. Capitalising of development stripping costs ceases at the time that
saleable mineral rights begin to be extracted from the mine.
Production stripping commences at the time that saleable materials begin to be extracted from the mine and
normally continues through the life of a mine. The costs of production stripping are capitalised to the cost of
inventory, and charged to the income statement upon sale of inventory in cost of goods sold.
I. Development expenditure
When a mining project has been established as commercially viable and technically feasible, expenditure other than
that on land, buildings and plant equipment is capitalised under development expenditure. Development expenditure
costs
include previously capitalised exploration and evaluation costs, pre-production development costs,
development excavation, development studies and other subsurface expenditure pertaining to that area of interest.
Costs related to surface plant and equipment and any associated land and buildings are accounted for as property,
plant and equipment. Development costs are accumulated in respect of each separate area of interest. Costs
associated with commissioning new assets in the period before they are capable of operating in the manner intended
by management, are capitalised. Development costs incurred after the commencement of production are capitalised
to the extent they are expected to give rise to a future economic benefit. Amortisation of carried forward exploration
and development costs is charged on a unit of production basis over the life of economically recoverable reserves.
When an area of interest is abandoned or the Directors decide it is not commercial or technically feasible, any
accumulated cost in respect of that area is written off in the financial period the decision is made. Each area of
interest is reviewed at the end of each accounting period and accumulated cost written off to the Statement of
Comprehensive Income to the extent that they will not be recoverable in the future.
Development assets are assessed for impairment if facts and circumstances suggest that the carrying amount exceeds
the recoverable amount. For the purpose of impairment testing, development assets are allocated to cash generating
units to which the development activity relates. The cash generating unit shall not be larger than the area of interest.
J. Rehabilitation expenditure
The mining, extraction and processing activities of the Company give rise to obligations for site rehabilitation.
Rehabilitation obligations can include facility decommissioning and dismantling, removal or treatment of waste
materials, land rehabilitation and site restoration. The extent of work required and the associated costs are estimated
based on feasibility and engineering studies using current restoration standards and techniques. Provisions for the
cost of each rehabilitation programme are recognised at the time that environmental disturbance occurs.
Rehabilitation provisions are initially measured at the expected value of future cash flows required to rehabilitate the
relevant site, discounted to their present value. The value of the provision is progressively increased over time as the
effect of discounting unwinds. When provisions for rehabilitation are initially recognised, the corresponding cost is
capitalised as an asset, representing part of the cost of acquiring the future economic benefits of the operation. The
capitalised cost of rehabilitation activities is recognised in ‘Development Expenditure’ as rehabilitation assets and
amortised accordingly.
Page 38
Notes to the Financial Statements
FOR THE YEAR ENDED 30 JUNE 2015
1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONT’D)
Where rehabilitation is expected to be conducted systematically over the life of the operation, rather than at the time
of closure, provision is made for the present obligation or estimated outstanding continuous rehabilitation work at
each balance date and the costs are recognised based on a consideration of the period which the rehabilitation is
expected to occur.
K. Segment Reporting
Segment results are reported to the Board of Directors (chief operating decision maker) and include items directly
attributable to a segment as well as those that can be allocated on a reasonable basis. Unless stated otherwise, all
amounts reported to the Board of Directors as the chief decision maker with respect to operating segments are
determined in accordance with accounting policies that are consistent with those adopted in the Annual Financial
Statements of the Company.
L. Financial Instruments
l.i Recognition
Financial instruments are initially measured at cost on trade date, which includes transaction costs, when the related
contractual rights or obligations exist. Subsequent to initial recognition these instruments are measured as set out
below.
l.ii Financial assets at fair value through Profit and Loss
A financial asset is classified in this category if acquired principally for the purpose of selling in the short term or if so
designated by management and within the requirements of AASB 139: Recognition and Measurement of Financial
Instruments. Realised and unrealised gains and losses arising from changes in the fair value of these assets are
included in the Consolidated Statement of Comprehensive Income in the year which they arise.
l.iii Loans and receivables
Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in
an active market and are stated at amortised cost using the effective interest rate method.
l.iv Fair value
The fair value of financial assets and financial liabilities must be estimated for recognition and measurement or for
disclosure purposes. In the Consolidated Statement of Comprehensive Income, the fair value of financial instruments
traded in active markets (such as publicly traded derivatives, and trading and available-for-sale securities) is based on
quoted market prices. The quoted market price used for financial assets held by the Group is the current bid price.
The carrying value less impairment provision of trade receivables and payables is 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 follows at the current market interest rate that is available to the Group for
similar financial instruments.
l.v
Impairment of assets
At each reporting date, the Group reviews the carrying values of its tangible and intangible assets to determine
whether there is any indication that those assets have been impaired. If such an indication exists, the recoverable
amount of the asset, being the higher of the asset’s fair value less costs to sell and value in use, is compared to the
asset’s carrying value. Any excess of the asset’s carrying value over its recoverable amount is expensed to the
Consolidated Statement of Comprehensive Income.
Impairment testing is performed annually for goodwill and intangible assets with indefinite lives. Where it is not
possible to estimate the recoverable amount of an individual asset, the Group estimates the recoverable amount of
the cash-generating unit to which the asset belongs.
At each reporting date, the Group assesses whether there is objective evidence that a financial instrument has been
impaired. In the case of available-for-sale financial instruments, a prolonged decline in the value of the instrument is
considered to determine whether impairment has arisen. Impairment losses are recognised in the Consolidated
Statement of Comprehensive Income.
Page 39
Notes to the Financial Statements
FOR THE YEAR ENDED 30 JUNE 2015
1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONT’D)
M. Foreign Currency Transactions and Balances
m.i. Functional and Presentation Currency
The functional currency of each of the Company’s entities is measured using the currency of the primary economic
environment in which that entity operates. The consolidated financial statements are presented in Australian dollars
which is the parent entity’s functional and presentation currency.
m.ii. Transactions and balances
Foreign currency transactions are translated into functional currency using the exchange rates prevailing at the date
of the transaction. Foreign currency monetary items are translated at the year-end exchange rate. Non-monetary
items measured at historical cost continue to be carried at the exchange rate at the date of the transaction. Non-
monetary items measured at fair value are reported at the exchange rate at the date when fair values were
determined.
Exchange differences arising on the translation of monetary items are recognised in the Consolidated Statement of
Comprehensive Income, except where deferred in equity as a qualifying cash flow or net investment hedge. Exchange
differences arising on the translation of non-monetary items are recognised directly in equity to the extent that the
gain or loss is directly recognised in equity; otherwise the exchange difference is recognised in the Consolidated
Statement of Comprehensive Income.
m.iii. Group Companies
The financial results and position of foreign operations whose functional currency is different from the Company’s
presentation currency are translated as follows:
assets and liabilities are translated at year-end exchange rates prevailing at that reporting date; and
income and expenses are translated at average exchange rates for the year.
Exchange differences arising on translation of foreign operations are transferred directly to the group’s foreign
currency translation reserve in the Statement of Financial Position. These differences are recognised in the
Consolidated Statement of Comprehensive Income in the year in which the operation is disposed.
N. Employee Benefits
Provision is made for the Company’s liability for employee benefits arising from services rendered by employees to
reporting date. Employee benefits that are expected to be settled within one year have been measured at the
amounts expected to be paid when the liability is settled, plus related on-costs. Employee benefits payable later than
one year have been measured at the present value of the estimated future cash outflows to be made for those
benefits.
n.i Equity settled compensation
The bonus element over the exercise price of the employee services rendered in exchange for the grant of options is
recognised as an expense in the Consolidated Statement of Comprehensive Income. The total amount to be expensed
over the vesting year is determined by reference to the fair value of the options granted.
n.ii Share-based payments
The Company provides benefits to employees (including Directors) of the Company in the form of share-based
payment transactions, whereby employees render services in exchange for shares or rights over shares (“equity-
settled transactions”). The cost of these equity settled transactions with employees is measured by reference to the
fair value at the date at which they are granted. The fair value is determined by an internal valuation and an external
valuation using the Black-Scholes model.
The cost of equity-settled transactions is recognised, together with a corresponding increase in equity, over the year
in which the performance conditions are fulfilled, ending on the date on which the relevant employees become fully
entitled to the award (“vesting date”). The cumulative expense recognised for equity-settled transactions at each
reporting date until vesting date reflects (i) the extent to which the vesting period has expired and (ii) the number of
awards that, in the opinion of the Directors of the Company, will ultimately vest.
This opinion is formed based on the best available information at reporting date. No adjustment is made for the
likelihood of market performance conditions being met as the effect of these conditions is included in the
Page 40
Notes to the Financial Statements
FOR THE YEAR ENDED 30 JUNE 2015
STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONT’D)
1.
determination of fair value at grant date. No expense is recognised for awards that do not ultimately vest, except for
awards where vesting is conditional upon market condition. Where an equity-settled award is cancelled, it is treated
as if it had vested on the date of cancellation, and any expense not yet recognised for the award is recognised
immediately. However, if a new award is substituted for the cancelled award, and designated as a replacement award
on the date that it is granted, the cancelled and new award are treated as if they were a modification of the original
award.
O. Provisions
Provisions are recognised when the Company has a legal or constructive obligation, as a result of past events, for
which it is probable that an outflow of economic benefits will result and that outflow can be reliably measured.
P. Cash and cash equivalents
Cash and cash equivalents includes cash on hand, deposits held at call with banks, other short-term highly liquid
investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within
short-term borrowings in current liabilities on the Statement of Financial Position.
Q. Revenue recognition
Revenue is measured at the fair value of gross consideration received or receivable. IEC recognises revenue when the
amount of revenue can be reliably measured and it is probable that future economic benefits will flow to the entity.
The amount of revenue is not considered to be reliably measured until all contingencies relating to the sale have been
resolved.
IEC recognises revenue when the risks and rewards transfer to the customer which is defined in the customer
contract.
R. Finance income and finance expense
r.i. Finance income and finance expense
Finance income and expenses are recognised using the effective interest rate method, which, for floating rate
financial assets and liabilities is the rate inherent in the instrument. Dividend revenue is recognised when the right to
receive a dividend has been established.
All finance income and expenses are stated net of the amount of goods and services tax (GST) and local value added
tax (VAT).
S. Goods and Service Tax (GST) and Value Added Tax (VAT)
Revenues, expenses and assets are recognised net of the amount of respective GST or VAT, except where the amount
of GST or VAT incurred is not recoverable from the relevant Tax Office. In these circumstances the GST or VAT is
recognised as part of the cost of acquisition of the asset or as part of an item of the expense. Receivables and
payables in the Consolidated Statement of Financial Position are shown inclusive of GST or VAT.
Cash flows are presented in the Consolidated Cash Flow Statement on a gross basis, except for the GST or VAT
component of investing and financing activities, which are disclosed as operating cash flows.
T. Trade and other payables
These amounts represent liabilities for goods and services provided to the Company prior to the end of financial year
which are unpaid. The amounts are unsecured and are usually paid within 30 days of recognition.
U. LEASES
u.i. Determining whether an arrangement contains a lease
At inception of an arrangement, the Group determines whether the arrangement is or contains a lease.
At inception or on reassessment of an arrangement that contains a lease, the Group separates payments and other
considerations required by the arrangement into those for the lease and those for other elements on the basis of
their relative fair values. If the Group concludes for a finance lease that it is impracticable to separate the payments
reliably, then an asset and a liability are recognised at an amount equal to the fair value of the underlying asset;
subsequently, the liability is reduced as payments are made and an imputed finance cost on the liability is recognised
using the Group’s incremental borrowing rate.
Page 41
Notes to the Financial Statements
FOR THE YEAR ENDED 30 JUNE 2015
1.
STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONT’D)
u.ii. Leased assets
Assets held by the Group under lease, that transfer to the Group substantially all of the risks and rewards of
ownership are classified as finance leases. The leased assets are measured initially at an amount equal to the lower of
fair value and the present value of the minimum lease payments. Subsequent to initial recognition, the assets are
accounted for in accordance with the accounting policy applicable to that asset.
Assets held under other leases are classified as operating leases and are not recognised in the Group’s Consolidated
Statement of Financial Position.
u.iii. Leased payments
Payments made under operating leases are recognised in profit or loss on a straight-line basis over the term of the
lease. Lease incentives received are recognised as an integral part of the total lease expense, over the term of the
lease.
Minimum lease payments made under finance leases are apportioned between the finance expense and the
reduction of the outstanding liability. The finance expense is allocated to each period during the lease term so as to
produce a constant periodic rate of interest on the remaining balance of the liability.
V. Earnings per share
v.i. Basic earnings per share
Basic earnings per share is calculated by dividing the profit attributable to equity holders of the Company, excluding
any costs of servicing equity other than ordinary shares, by the weighted average number of ordinary shares
outstanding during the financial year, adjusted for bonus elements in ordinary shares issued during the year.
v.ii. Diluted earnings per share
Diluted earnings per share adjust the figures used in the determination of basic earnings per share to take into
account the after income tax effect of interest and other financing costs associated with dilutive potential ordinary
shares.
W. Assets held for sale
Non-current assets, or disposal groups comprising assets and liabilities, are classified as held for sale if it is highly
probable that they will be recovered primarily through sale rather than through continuing use.
Such assets, or disposal groups, are generally measured at the lower of their carrying amount and fair value less costs
to sell. Any impairment loss on a disposal group is allocated first to goodwill, and then to the remaining assets and
liabilities on a pro rata basis, except that no loss is allocated to inventories, financial assets, deferred tax assets,
employee benefits assets which continue to be measured in accordance with the Group’s other accounting policies.
Once classified as held for sale, intangible assets and property, plant and equipment are no longer amortised or
depreciated, and any equity accounted investee is no longer equity accounted.
X. Critical accounting judgments and key sources of estimation uncertainty
In the application of the Company’s accounting policies, which are described in Note 1, management is required to
make judgments, estimates and assumptions about carrying values of assets and liabilities that are not readily
apparent from other sources. 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 judgments. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an on-going 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.
x.i. Key Sources of estimation uncertainty
The following are the key assumptions concerning the future, and other key sources of estimation uncertainty at the
reporting date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and
liabilities within the next financial year:
Recoverability of exploration and evaluation expenditure
The recoverability of the capitalised acquisition expenditure recognised as a non-current asset is dependent
Page 42
Notes to the Financial Statements
FOR THE YEAR ENDED 30 JUNE 2015
1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONT’D)
upon the successful development, or alternatively sale, of the respective tenements which comprise the
assets.
Inventories
Inventories are measured at the lower of cost and net realisable value. The cost of inventories is based on
average costs over the relevant period of production and includes expenditure in accumulating the
inventories, production costs and other costs incurred in bringing them to their existing location and
condition. Stockpile tonnages are verified by periodic surveys.
Rehabilitation
The extent of work required and the associated costs are estimated based on feasibility and engineering
studies using current restoration standards and techniques. Provisions for the cost of each rehabilitation
programme are recognised at the time that environmental disturbance occurs.
2. REVENUES
From continuing operations
Coal sales
3. DEPRECIATION AND AMORTISATION
Loss before income tax includes the following specific expenses:
Depreciation and amortisation
Depreciation
Plant and equipment
Less depreciation capitalised
Total depreciation
Amortisation
TOTAL
CONSOLIDATED
2015
$’000S
2014
$’000S
16,555
10,867
CONSOLIDATED
2015
$’000S
(1,261)
-
(1,261)
(27)
(1,288)
2014
$’000S
(1,374)
119
(1,255)
(137)
(1,392)
Page 43
Notes to the Financial Statements
FOR THE YEAR ENDED 30 JUNE 2015
4. INCOME TAX BENEFIT
(a) Numerical reconciliation of income tax expense to prima facie tax payable
Loss from ordinary activities before income tax expense
Prima facie tax benefit on loss from ordinary activities at 30%
Non-deductible expenditure
Tax effect of temporary differences
Tax effect of current year tax losses for which no deferred tax asset has
been recognised
Foreign tax losses utilised
Foreign income tax payable
Under provision of tax from prior year
Research & Development Grant
Income tax (Benefit)/ Expense
(b) Unrecognised temporary differences
Deferred Tax Assets (at 30%)
Other temporary differences
Carry forward revenue tax losses
Carry forward capital tax losses
Carry forward foreign tax losses
TOTAL
CONSOLIDATED
2015
$’000S
2014
$’000S
(1,458)
(437)
178
487
537
(719)
43
-
(160)
(71)
1,314
5,749
8
12,769
19,840
(20,884)
(6,265)
185
(435)
7,549
-
26
(1,033)
(134)
(107)
1,164
5,399
8
12,194
18,765
The deferred tax asset relating to carry forward losses and other temporary differences have not been brought to
account as it is unlikely they will arise until such a point that the Company generates sufficient revenue to utilise
them.
5. KEY MANAGEMENT PERSONNEL COMPENSATION
The following persons were Directors of the Company during the financial year:
Non-Executive Directors
Mr G Robertson (Chairman) 1
Mr D Mason2
Mr J Warrand3
Non-Executive Directors
Mr W Paterson
Mr G Nasari
Mr S Harvey4
Acting Chief Executive Officer
Mr T Brereton5
1Mr Graeme Robertson resigned as Executive Chairman on 31 October 2014, Mr Robertson continues as a Non-
Executive Chairman
2Mr David Mason resigned as an Executive Director on 31 July 2014, Mr Mason continued as a Non-Executive Director
3Mr Jonathan Warrand resigned as Executive Director and Chief Financial Officer on 31 October 2014, Mr Warrand
continued as a Non-Executive Director
Page 44
Notes to the Financial Statements
FOR THE YEAR ENDED 30 JUNE 2015
KEY MANAGEMENT PERSONNEL COMPENSATION (CONT’D)
5.
4Mr Simon Harvey was appointed as an Alternate Director for Mr Jonathan Warrand on 10 December 2013. Mr Harvey
does not receive any remuneration for acting in his capacity as Alternate Director
5Mr Tarn Brereton was appointed Acting Chief Executive Officer on 31 October 2014, previously Mr Brereton held the position of
Chief Operating Officer.
KEY MANAGEMENT PERSONNEL COMPENSATION
Short-term employee benefits
Superannuation
Post-employment benefits
Other benefits*
Performance rights
TOTAL COMPENSATION
2015
$
754,437
10,870
159,320
-
171,929
1,096,556
2014
$
993,606
46,568
-
23,105
221,349
1,284,628
* Other benefits relates to the payment of Directors’ and Officers’ Liability Insurance
Details on the remuneration paid to the non-executive directors and executive directors who at any point during the
year had authority and responsibility for planning, directing and controlling the activities of Intra energy Corporation
Limited are provided under Section D of the Remuneration Report in accordance with the Corporations Amendment
Regulations 2006 (no.4).
EQUITY INSTRUMENT DISCLOSURES RELATING TO KEY MANAGEMENT PERSONNEL
Options provided as remuneration and shares issued on exercise of such options
Details of options provided as remuneration and shares issued on the exercise of such options, together with terms
and conditions of the options, can be found in the Remuneration Report forming part of the Directors’ Report on
pages 16 to 24.
Option holdings
The numbers of options over ordinary shares in the Company provided as remuneration held during the financial year
or at time of resignation by each Director and Key Management Personnel of IEC, including their related parties, are
set out below:
GRANTED
DURING THE
YEAR AS
BALANCE AT
2015
THE BEGINNING
OF YEAR
COMPENSATIO
N
Key Management Personnel
EXERCISED
DURING THE
YEAR
LAPSED /
CANCELLED
BALANCE AT
DURING THE
YEAR
THE END OF THE
YEAR
VESTED AND
EXERCISABLE
Mr G Robertson
Mr J Warrand
Mr D Mason
Mr G Nasari
Mr W Paterson
Mr T Brereton
Mr S Harvey
Total
Page 45
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
Notes to the Financial Statements
FOR THE YEAR ENDED 30 JUNE 2015
5.
KEY MANAGEMENT PERSONNEL COMPENSATION (CONT’D)
GRANTED
DURING THE
BALANCE AT
YEAR AS
EXERCISED
LAPSED /
CANCELLED
BALANCE AT
2014
THE BEGINNING
OF YEAR
COMPENSATIO
N
DURING THE
YEAR
DURING THE
YEAR
THE END OF THE
YEAR
VESTED AND
EXERCISABLE
Key Management Personnel
Mr G Robertson
3,000,000
Mr J Warrand
Mr D Mason
Mr G Nasari
Mr W Paterson
Mr T Brereton
Mr S Harvey
1,000,000
1,500,000
800,000
–
–
–
Total
6,300,000
Performance rights
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
(3,000,000)
(1,000,000)
(1,500,000)
(800,000)
–
–
–
(6,300,000)
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
The numbers of performance rights in the Company held during the financial year or at time of resignation by each
Director and Key Management Personnel of IEC, including their personally related parties, are set out below:
BALANCE AT THE
GRANTED DURING
VESTED
2015
BEGINNING OF
YEAR
THE YEAR AS
COMPENSATION
DURING THE
YEAR
LAPSED / CANCELLED
DURING THE YEAR
BALANCE AT THE
END OF THE YEAR
Key Management Personnel
Mr G Robertson
Mr J Warrand
Mr D Mason
Mr G Nasari
Mr W Paterson
Mr T Brereton*
Mr S Harvey
Total
2,832,240
1,889,784
2,004,922
–
–
532,305
–
7,259,251
* At time of appointment as Chief Operating Officer
–
–
–
–
–
–
–
–
135,000
251,716
251,716
–
–
140,242
–
778,674
1,030,574
1,666,666
721,402
669,873
916,666
1,083,333
–
–
–
–
–
–
392,063
–
2,421,849
4,058,728
Page 46
Notes to the Financial Statements
FOR THE YEAR ENDED 30 JUNE 2015
5.
KEY MANAGEMENT PERSONNEL COMPENSATION (CONT’D)
BALANCE AT THE
GRANTED DURING
VESTED
2014
BEGINNING OF
YEAR
THE YEAR AS
COMPENSATION
DURING THE
YEAR
LAPSED / CANCELLED
DURING THE YEAR
BALANCE AT THE
END OF THE YEAR
Key Management Personnel
Mr G Robertson
Mr J Warrand
Mr D Mason
Mr G Nasari*
Mr W Paterson
Mr T Brereton
Mr S Harvey
Total
2,697,240
1,638,068
1,753,206
–
–
135,000
251,716
251,716
–
–
392,063
140,242
–
–
6,480,577
778,674
ˆ At time of resignation
6. AUDITOR’S REMUNERATION
–
–
–
–
–
–
–
–
Audit services
Auditors of the Group – KPMG
Audit and review of financial reports
Other auditors – non-KPMG firms
Audit and review of financial reports
Non-Audit services
Services provided other than statutory audit – KPMG
Tax advisory services
Other advisory services
7. EARNINGS PER SHARE
Basic and diluted loss per share
Loss from continuing operations attributable to the ordinary equity
holders of the Company
Weighted average number of ordinary shares outstanding during the year
used in calculating basic EPS
Loss per share (cents) - basic
Page 47
–
–
–
–
–
–
–
–
2,832,240
1,889,784
2,004,922
–
–
532,305
–
7,259,251
CONSOLIDATED
2015
$’000S
2014
$’000S
312
–
312
23
18
41
218
3
221
53
–
53
2015
2014
$1,745,000
$18,845,000
336,264,875
281,904,708
(0.52)
(6.68)
Notes to the Financial Statements
FOR THE YEAR ENDED 30 JUNE 2015
7. EARNINGS PER SHARE (CONT’D)
At 30 June 2015, 23,859,217 options were excluded from the diluted weighted-average number of ordinary shares
calculation because their effect would have been anti-dilutive.
8. INVENTORIES
Consumables, fuel and other equipment
Coal stock
9. TRADE AND OTHER RECEIVABLES
Current
Trade receivables
Other receivables
Related party receivables
Taxation receivables
Prepayments
CONSOLIDATED
2015
$’000S
435
1,750
2,185
CONSOLIDATED
2015
$’000S
924
946
63
91
505
2,529
2014
$’000S
117
1,584
1,701
2014
$’000S
1,777
261
34
37
409
2,518
10. DISPOSAL GROUP HELD FOR SALE
In April 2014, management committed to joint venture part of its subsidiary AAA Drilling Limited (“AAA Mauritius”)
which owns 100% of AAA Drilling Limited (“AAA Tanzania”), an operating drilling company in Tanzania that was
established to undertake drilling and logging for IEC entities and third party customers in Eastern Africa. Accordingly,
AAA Drilling Limited Group is presented as a disposal group held for sale.
Subsequent to 30 June 2014, IEC completed the transaction of the joint venture with General Petroleum Oils and
Tools Pty Limited (“GPOT”), a leading Queensland based provider of drilling supplies and consulting services to the oil
and gas industry. GPOT has acquired a 50% interest in AAA Mauritius. As part of the joint venture, GPOT lent A$0.7m
to AAA Tanzania to be paid in three cash instalments, A$0.4m on completion, A$0.15m on or before 30 November
2014 and A$0.15m on or before 31 March 2015 for working capital.
IEC and GPOT each provided an additional A$0.125m working capital and provide significant technical and operational
capabilities to AAA Tanzania. Both joint venture partners will have equal representation on the board and appoint a
Joint Operating Officer to the company.
The Group recognised a loss of $0.142m on the disposal.
Page 48
Notes to the Financial Statements
FOR THE YEAR ENDED 30 JUNE 2015
10. DISPOSAL GROUP HELD FOR SALE (CONT’D)
Assets and liabilities held for sale at 30 June 2014
Assets and Liabilities held for sale
Current Assets
Assets held for sale
Current Liabilities
Liabilities held for sale
11. EQUITY ACCOUNTED INVESTMENTS
CONSOLIDATED
2015
$’000S
-
-
2014
$’000S
2,458
1,056
On 9 September 2014, IEC entered into the joint venture with AAA drilling with GPOT. Information on the interest in
the AAA Drilling Joint Venture is as follows;
Equity accounted investments
CONSOLIDATED
2015
$’000S
989
2014
$’000S
-
IEC’s share of loss after tax in its equity accounted investee was ($0.077m)1
Summary financial information for equity accounted investees, not adjusted for the percentage ownership held by
IEC, is as follows;
2015
AAA Drilling
Limited
OWNED
NATURE OF
RELATIONSHIP
ASSETS
$’000S
LIABILITIES
REVENUES
LOSS BEFORE
TAX
$000’S
$000’S
$000’S
50%
Joint Venture
2,456
(477)
195
(252)
1AAA Drilling has been equity accounted from 9 September 2014.
Page 49
Notes to the Financial Statements
FOR THE YEAR ENDED 30 JUNE 2015
12. PROPERTY, PLANT AND EQUIPMENT
30 June 2015
Year ended 30 June 2015
At 1 July 2014, net of accumulated
depreciation
Additions
Disposals (net)
Impairment
Transfers
Depreciation charge
Effect of exchange rates (net)
At 30 June 2015, net of accumulated
depreciation
At 30 June 2015
At cost
Accumulated depreciation and impairment
Net carrying amount
Office
Equipment
$’000
Mining Plant
and Equipment^
$’000
Motor Vehicles
$’000
Leasehold
$’000
Capital Work in
Progress
$’000
Software*
$’000
521
126
(10)
6,642
1,696
514
498
531
-
64
-
188
46
-
-
-
-
-
Total
$’000
10,059
767
(10)
-
-
-
-
-
-
-
65
(167)
28
563
949
(386)
563
242
-
-
(307)
-
-
(660)
224
6,979
8,844
(1,865)
6,979
(326)
46
1,416
2,410
(994)
1,416
(19)
-
5
-
564
191
613
(49)
564
191
-
191
(89)
1
146
490
(344)
146
(1,261)
304
9859
13,497
(3,638)
9,859
^ $1.6m of Property, Plant and Equipment is held as collateral by KCB Bank of Tanzania in relation to loan facilities.
* Intangible items were re-classified as software in financial year 2015.
Page 50
Notes to the Financial Statements
FOR THE YEAR ENDED 30 JUNE 2015
12. PROPERTY, PLANT AND EQUIPMENT (CONT’D)
30 June 2014
Year ended 30 June 2014
At 1 July 2013, net of accumulated
depreciation
Additions
Disposals (net)
Impairment
Transfers
Depreciation charge
Effect of exchange rates (net)
Reclassified as held for sale*
At 30 June 2014, net of accumulated
depreciation
At 30 June 2014
At cost
Accumulated depreciation and impairment
Net carrying amount
Office
Equipment
$’000
Mining Plant
and Equipment^
$’000
Motor Vehicles
$’000
Leasehold
$’000
Capital Work in
Progress
$’000
Software*
$’000
509
61
(3)
130
(150)
(24)
(2)
521
742
(221)
521
7,117
2,614
(204)
132
(828)
(556)
(1,633)
6,642
7,821
(1,179)
6,642
2,139
234
(378)
(113)
(186)
1,696
2,376
(680)
1,696
528
13
22
(18)
(31)
514
546
(32)
514
220
563
(284)
(1)
498
498
-
498
252
72
(134)
(2)
188
442
(254)
188
Total
$’000
10,765
3,557
(3)
(204)
(1,508)
(727)
(1,821)
10,059
12,425
(2,366)
10,059
^ $2.568m of Property, Plant and Equipment is held as collateral by the National Bank of Commerce in relation to loan facilities.
* Intangible items were re-classified as software in financial year 2015.
Page 51
Notes to the Financial Statements
FOR THE YEAR ENDED 30 JUNE 2015
13. CAPITALISED MINE DEVELOPMENT COSTS
Tancoal Mine
Opening balance
Mine development expenditure
Rehabilitation asset
Amortisation
Effect of exchange rates
Malcoal Mine
Opening balance
Mine development expenditure
Amortisation
Effect of exchange rates
TOTAL
CONSOLIDATED
2015
$’000s
2014
$’000s
4,530
242
106
(26)
66
4,918
1,912
74
(1)
168
2,153
7,071
4,688
41
112
(2)
(309)
4,530
1,611
590
(1)
(288)
1,912
6,442
Page 52
Notes to the Financial Statements
FOR THE YEAR ENDED 30 JUNE 2015
14. EXPLORATION EXPENDITURE
Uaroo tenements
Opening balance
Impairment
Tanzacoal tenements
Opening balance
Exploration expenditure
Effect of exchange rates
Impairment
Intra Energy Tanzania Limited tenements
Opening balance
Acquisition expenditure
Exploration expenditure transferred to capitalised mine development
Effect of exchange rates
Exploration expenditure transferred to Tancoal Energy Limited
Tancoal Energy Limited tenements
Opening balance
Exploration expenditure
Exploration expenditure transferred from Intra Energy Tanzania
Effect of exchange rates
Intra Energy Trading (Malawi) Limited tenements
Opening balance
Effect of exchange rates
TOTAL
CONSOLIDATED
2015
$’000s
126
(126)
239
262
2
503
10
-
10
513
2014
$’000s
126
126
14,276
22
(885)
(13,413)
255
(6)
(249)
249
(10)
239
11
(1)
10
375
The recoverability of the carrying amount of exploration assets is dependent on the successful development and
commercial exploitation or sale of the respective mining permits.
On 4 April 2014 Intra Energy’s subsidiary company Tanzacoal East Africa Mining Limited received notice from the
Tanzanian Minister for Energy that Special Mining Licence SML235/2005 had been cancelled without consultation. An
impairment charge has been recognised for the full carrying value of the licence. The Company believes the
cancellation has been made in error and is seeking legal remedy to have the licence reinstated or compensation from
the Tanzanian Government.
On 20 August 2015, the Company advised the market that its Uaroo tenements in Australia lapsed on 2 July 2015. An
impairment charge has been recognised for the full carrying value of the licence.
Page 53
Notes to the Financial Statements
FOR THE YEAR ENDED 30 JUNE 2015
15. TRADE AND OTHER PAYABLES
Trade payables
Related party payables
Accruals
16. INTEREST BEARING LIABILITIES
Current
Secured loan facility
Hire purchase equipment
Non-current
Hire purchase equipment
CONSOLIDATED
2015
$’000s
5,802
358
1,100
7,260
2014
$’000s
4,617
106
663
5,386
CONSOLIDATED
2015
$’000s
2014
$’000s
1,739
690
2,429
805
805
3,234
1,733
414
2,147
1,486
1,486
3,633
On 1 December 2014 Tancoal re-financed its debt with KCB Bank Tanzania Limited (KCB). The loan facility does not
have any covenants but is repayable on demand and is secured against plant and equipment. Interest is charged on
the facility at a rate of 8% per annum. The facility is repaid over a three year term and principal and interest
repayments are made monthly. Full repayment is expected in November 2017.
Bank overdraft facility
On 28 July 2015, KCB approved an increase in the working capital facility from US$0.5m to US$1.0m to support the
monthly working capital cycle of Tancoal. Interest is charged on the facility at a rate of 8% per annum. The overdraft is
not subject to any covenant requirements.
Hire purchase
On 28 August 2013, IEC’s subsidiary Malcoal Mining Limited entered into a hire purchase arrangement to finance
mining equipment at the Malcoal Mine in Malawi. The agreement term is 5 years with an option to purchase the
equipment at the conclusion of the term.
17. PROVISIONS
Non-current
Rehabilitation provision
Rehabilitation provision was reclassified as non-current in financial year 2015
Page 54
CONSOLIDATED
2015
$’000s
550
550
2014
$’000s
444
444
Notes to the Financial Statements
FOR THE YEAR ENDED 30 JUNE 2015
17. PROVISIONS (CONT’D)
The movement in provisions during the year are as follows:
2015
$000’s
Opening balance
Increase
Closing balance
Represented by;
Current
Non-current
Closing balance
Rehabilitation
Rehabilitation
Total
444
106
550
-
550
550
444
106
550
-
550
550
The mining, extraction and processing activities of the Company give rise to obligations for site rehabilitation.
Rehabilitation obligations can include facility decommissioning and dismantling, removal or treatment of waste
materials, land rehabilitation and site restoration. The extent of work required and the associated costs are estimated
based on feasibility and engineering studies using current restoration standards and techniques. Provisions for the
cost of each rehabilitation programme are recognised at the time that environmental disturbance occurs.
18. ISSUED CAPITAL
2015
Issue price
No.
$ per share
2015
$’000s
2014
Issue price
No.
$ per share
67,858 275,012,492
2014
$’000s
66,391
Balance at the
beginning of the year: 290,324,925
Shares issued as part
of the vesting of
performance rights
1,295,698
Shares issued for cash
as part of Share
Purchase Plan
Share issue costs
Balance at the end of
the year
59,648,102
$0.027
1,610
15,312,433
$0.010
(81)
1,531
(64)
351,268,725
69,387 290,324,925
67,858
1. Fully paid ordinary shares carry one vote per share and carry the rights to dividends
2. On 22 January 2014, Shareholders approved the issue of performance rights to the Executive Directors (as at this
date) and Senior Management of IEC in exchange for a voluntarily reduction in their cash remuneration for the six
month period from 1 January to 30 June 2014. The Executive Directors at the time voluntarily elected a 20%
reduction in base remuneration (excluding superannuation) and the Senior Management elected a 10% reduction
in exchange for performance rights as a short term cash saving measure. These Executive Directors and Senior
Management were granted a fixed number of IEC performance rights based on their remuneration deferral. The
1,295,698 performance rights issued to the Senior Management and these Executive Directors (now Non-
Executive Directors) vested in January 2015.
Page 55
Notes to the Financial Statements
FOR THE YEAR ENDED 30 JUNE 2015
19 RESERVES
19(a) Options reserve
Balance at the beginning of the year:
Options exercised during year
Options expired during year
Issued during the year
Balance at the end of the year
(600,000)
1. No options were granted during the 2014 or 2013 years
2. Options expired during the year had not been issued to directors
19(b) Performance Rights reserve
Total Performance Rights reserve
20. SUBSIDIARIES AND JOINTLY CONTROLLED ENTITIES
2015
No.
2015
$’000s
2014
No.
600,000
2,216
9,400,000
2014
$’000s
2,216
(8,800,000)
2,216
600,000
2,216
CONSOLIDATED
2015
$’000s
795
2014
$’000s
589
The Consolidated Financial Statements incorporate the assets, liabilities and results of the following subsidiaries in
accordance with accounting policy described in Note 1.
Name of Entity
Country of
Incorporation
Class of Share
Equity (%)*
2015
Equity (%)*
2014
Atomic Resources Pty Ltd
Australia
Ordinary
Intra Energy (Tanzania) Limited
Tanzania
Ordinary
Tancoal Energy Limited
Tanzania
Ordinary
Tanzacoal East Africa Mining Limitedᶺ
Tanzania
Ordinary
AAA Drilling Limitedᶺᶺᶺ
AAA Drilling Limitedᶺᶺᶺ
Intra Energy Limited
Mauritius
Ordinary
Tanzania
Ordinary
Mauritius
Ordinary
East Africa Mining Limited
Mauritius
Ordinary
Intra Energy Trading (Malawi) Limited
Malawi
Ordinary
Malcoal Mining Limited
Malawi
Ordinary
Intra Energy (Sarawak) Sdn. Bhd.
Malaysia
Ordinary
Intra Energy Corporation (Singapore) Pte Ltd
Singapore
Ordinary
Intra Energy Laos Pte. Ltdᶺᶺᶺᶺ
Singapore
Ordinary
Intra Energy Vietnam Pte. Ltdᶺᶺᶺᶺ
Singapore
Ordinary
Pamodzi Power Limitedᶺᶺ
Malawi
Ordinary
Page 56
100%
100%
70%
85%
50%
50%
100%
100%
100%
90%
100%
100%
100%
100%
100%
100%
100%
70%
85%
100%
100%
100%
100%
100%
90%
100%
100%
100%
100%
100%
Notes to the Financial Statements
FOR THE YEAR ENDED 30 JUNE 2015
20. SUBSIDIARIES AND JOINTLY CONTROLLED ENTITIES (CONT)
* Percentage of voting power is in proportion to ownership.
ᶺ In December 2013 Intra Energy increased its ownership in the Tanzacoal joint venture from
70% to 85%. The increase was triggered under terms in the Joint Venture Agreement by the
minority shareholder not satisfying its share of the development and holding costs of the
concessions.
ᶺᶺ Entity incorporated in financial year ending 30 June 2014.
ᶺᶺᶺ IEC completed the transaction of the joint venture with General Petroleum Oils and Tools
Pty Limited (“GPOT”), GPOT has acquired a 50% interest in AAA Drilling Limited in both
Tanzania and Mauritius.
ᶺᶺᶺᶺ De-registered 20 January 2015.
21. NON-CONTROLLING INTEREST
Total non-controlling interest
CONSOLIDATED
2015
$’000s
(4,880)
2014
$’000s
(5,155)
The Company’s subsidiary Intra Energy (Tanzania) Limited (“IETL”) owns 70% of Tancoal and 30% is owned by
Tancoal’s joint partner, the National Development Corporation of Tanzania, a Tanzanian government entity.
IETL owns 85% of Tanzacoal and 15% is owned by IETL’s Tanzacoal joint partner, Olympic Exploration Limited, a private
Tanzanian entity.
The Company’s subsidiary East Africa Mining Limited owns 90% of Malcoal and 10% is owned by Consolidated Mining
Industries Limited, a private Malawian entity.
22. COMMITMENTS
22(a) Operating Commitments
Operating expenditure contracted for at the reporting date but not recognised as liabilities is as follows:
Rental and Lease Payments
Less than 1 year
Between 2 and 5 years
Greater than 5 years
Total Rental and Lease Payments
Tenement Leases Expenditure Payable
Less than 1 year
Between 2 and 5 years
Greater than 5 years
Total Tenement Leases Expenditure Payable
TOTAL
Page 57
2015
$’000s
216
440
656
873
1884
39
2,796
3,452
2014
$’000s
159
382
541
487
1,857
65
2,409
2,950
Notes to the Financial Statements
FOR THE YEAR ENDED 30 JUNE 2015
22. COMMITMENTS (CONT)
22(b) Finance Lease Commitments
Finance lease liabilities committed to at the reporting date, recorded as liabilities, are as follows:
Finance Lease Expenditure Commitments Payable
Less than 1 year
Between 2 and 5 years
Greater than 5 years
TOTAL
2015
$’000s
857
1,024
-
1,881
2014
$’000s
608
1,371
1,979
The Group has an obligation under the JV agreement with AAA Drilling to commit $0.2m per year by the provision of
drilling work or by contribution.
23. CONTINGENT LIABILITIES AND CONTINGENT ASSETS
On 4 April 2014 the Company received notice from the Tanzanian Minister of Energy and Minerals that licence SML
235/2005, held by IEC subsidiary company Tanzacoal East Africa Mining Limited, had been cancelled. As a result an
impairment of $13.4m was recorded during the period. The Company has sought legal recourse to have the licence re-
instated and should the Company be successful then any re-instatement or recompense would result in benefit to the
Group. The matter has not been resolved at the date of this report.
The Directors are not aware of any further contingent liabilities or contingent assets at 30 June 2015.
24. SEGMENT REPORTING
The Company operates in two geographical segments being Australia and Africa.
Segment information
The Company has identified its operating segments based on the internal reports that are reviewed and used by the
Board of Directors (chief operating decision maker) in assessing performance and determining the allocation of
resources. The Company’s business is the exploration, evaluation, marketing, production and sale of coal in Africa.
‘Other’ recognises the non-operating entities incorporated in Singapore and Malaysia, which were nil in FY 2015.
Basis of Accounting for purposes of reporting by operating segments
Accounting policies adopted
Unless stated otherwise, all amounts reported to the Board of Directors as the chief decision maker with respect to
operating segments are determined in accordance with accounting policies that are consistent with those adopted in
the annual Financial Statements of the Group.
Inter-segment loans payable and receivable are initially recognised at the consideration received net of transaction
costs. If inter-segment loans receivable and payable are not on commercial terms, these are not adjusted to fair value
based on market interest rates.
Segment assets
Where an asset is used across multiple segments, the asset is allocated to the segment that receives the majority of
economic value from the asset. In the majority of instances, segment assets are clearly identifiable on the basis of
their nature and physical location. Unless indicated otherwise in the segment assets note, investments in financial
assets, deferred tax assets and intangible assets have not been allocated to operating segments.
Segment liabilities
Liabilities are allocated to segments where there is a direct nexus between the incurrence of the liability and the
operations of the segment. Borrowings and tax liabilities are generally considered to relate to the Group as a whole
and are not allocated. Segment liabilities include trade and other payables.
Notes to and forming part of the segment information
The consolidation adjustments represent the elimination of inter-segment loan balances and transactions.
Page 58
Notes to the Financial Statements
FOR THE YEAR ENDED 30 JUNE 2015
24. SEGMENT REPORTING (CONT)
Accounting policies
Segment information is prepared in conformity with the accounting policies of the entity as per Accounting Standard
AASB 8 Operating Segments.
Page 59
Notes to the Financial Statements
FOR THE YEAR ENDED 30 JUNE 2014
24. SEGMENT REPORTING (CONT’D)
Australia
Period Ended
30 June 15
$’000
Australia
Period Ended
30 June 14
$’000
Africa
Period Ended
30 June 15
$’000
Africa
Period Ended
30 June 14
$’000
Other
Period Ended
30 June 15
$’000
Other
Period Ended
30 June 14
$’000
Elimination
Period Ended
30 June 15
$’000
Elimination
Consolidated
Period Ended
30 June 15
$’000
Consolidated
Period Ended
30 June 14
$’000
–
691
691
–
691
161
–
625
625
–
625
–
16,555
10,867
–
16,555
(9,752)
6,803
870
–
10,867
(8,978)
1,889
50
(2,199)
(5,543)
(5,149)
(1,010)
(1,347)
(4,918)
2,524
929
(126)
(97)
–
–
(39)
–
–
(13,617)
(1,164)
(27)
(1,216)
(137)
–
–
–
–
–
–
–
–
–
–
–
Period Ended
30 June 14
$’000
–
(625)
(625)
–
(625)
–
–
–
–
–
–
–
–
(773)
–
(691)
(691)
–
(691)
–
–
(773)
(691)
(625)
–
–
–
–
–
–
–
–
–
16,555
10,867
–
16,555
(9,752)
6,803
1,031
–
10,867
(8,978)
1,889
50
(7,348)
(7,326)
486
(126)
(1,261)
(27)
(5,387)
(13,617)
(1,255)
(137)
(1,570)
(4,957)
1,333
(14,041)
–
(773)
(691)
(625)
(928)
(20,396)
2
(532)
(1,458)
71
15
(503)
(20,884)
107
(1,387)
(20,777)
5,538
(695)
4,704
(276)
22,128
(55,940)
19,423
(56,296)
–
–
–
–
(4,284)
44,664
(326)
45,291
23,382
(11,971)
23,801
(11,281)
Geographical Segment
Revenue
Sales revenue
Inter-segment revenue
Total revenue
Net costs of production
Gross Profit
Other income
Other operating expenses
Profit/(loss) before
impairment, depreciation,
amortisation, net finance costs
and tax
Impairment
Depreciation
Amortisation
Results from operating
activities
Finance income
Finance expenses
Profit/(loss) before tax
Income tax benefit/(expense)
Net Loss
Balance per statutory accounts
Total Assets
Total Liabilities
Page 60
Notes to the Financial Statements
FOR THE YEAR ENDED 30 JUNE 2015
25. CASH FLOW INFORMATION
Loss before income tax
Non-cash flows in profit
Depreciation and amortisation
Share based payments
Provision for doubtful debts
Share of profit of equity-accounted investees net of tax
Impairment and other provisions
Loss on sale of non-current assets
Foreign exchange
Change in inventories
Change in receivables
Change in other current assets
Change in provisions
Change in trade payables
Net cash provided/(used) in operating activities
26. SHARE BASED PAYMENTS
26(a) Shares and options
2015
$’000s
(1,458)
1,289
206
–
77
126
142
(229)
(484)
(11)
-
39
1,247
944
2014
$’000s
(20,884)
1,392
322
257
–
13,617
3
56
323
714
97
(4)
717
(3,390)
No shares or options were granted by the Company during the 2015 or 2014 years.
26(b) Performance rights
No Performance rights were issued in the 2015 year.
Performance Rights for the 2014, 2013 and 2012 incentive schemes were provisionally expensed in the period.
As stated in the Remuneration Report there are two measures of performance for Directors and three
measures for senior management who participate in the incentive scheme. It is not considered likely that the
internal measure (EPS) will be met over the vesting period and no provision has been made. The vesting of the
external measured rights will be subject to IEC’s TSR outperforming the S&P/ASX300 Energy Index (ASX: XEK)
over the vesting period. A valuation methodology was constructed using a Monte Carlo simulation to generate
a fair value at grant date. The fair value of the market based performance incentives was deemed to be 17
cents per performance right share. This will be expensed over the vesting period of three years and resulted in
$.206m being expensed in FY 2015.
Vesting periods:
Performance rights issued in FY 2012 vested over the period 12 August 2011 to 29 August 2014.
Performance rights issued in FY 2013 vest over the period 31 October 2012 to 31 August 2015.
Performance rights issued in FY 2014 vested over the period 22 January 2014 to 31 January 2015.
27. SUBSEQUENT EVENTS
On 28 July 2015 Tancoal increased its working capital facility with KCB Bank Tanzania Limited from US$0.5m to
US$1.0m.
On 20 August 2015, the Company advised the market that its Uaroo tenements in Australia lapsed on 2 July
2015.
Other than those events outlined above, there has not arisen in the interval between the end of the financial
year and the date of this report any item, transaction or event of a material and unusual nature likely, in the
opinion of the Directors of the Company, to affect significantly the operations of the Company, the results of
those operations, or the state of affairs of the Company, in future financial years.
Page 61
Notes to the Financial Statements
FOR THE YEAR ENDED 30 JUNE 2015
28. RELATED PARTY TRANSACTIONS
Details relating to Key Management Personnel are disclosed in Note 5.
2015
During the year the Company paid Intrasia Capital Pty Limited, a related party of Graeme Robertson and
Jonathan Warrand, for accounting, administration, investor relations and back office support services to IEC,
the fee was reviewed regularly over the year and an amount of $186,000 (plus GST) was paid for the full year.
At 30 June 2015 an amount of $11,893 remained outstanding.
In October 2014 the Company raised A$1.6m by way of a partially underwritten Share Purchase Plan. The Plan
was partially underwritten by IEC Directors, Key Management Personnel and their related parties, who received
underwriting fees of 3% on their portion of the shortfall:
Director/KMP
Related Party
Shares
underwritten
$’000
Underwriting fees
$’000
Mr G Robertson Aspac Mining Limited
6,717,632
672
Mr J Warrand
Cobblyn Investments Pty Ltd
246,751
25
Mr D Mason
D&H Investments Pty Ltd and Rothstein
Pty Ltd
Mr W Paterson
Lujeta Pty Ltd
608,849
61
2,744,407
274
Mr Tarn
Brereton
Brereton Family Trust
250,000
25
20
1
2
8
1
During the year, IEC subsidiary Intra Energy Tanzania Limited received administration fees of $8,287 for
administration services provided to Geothermal Power Tanzania Limited, a related party of Graeme Robertson,
David Mason and Jonathan Warrand.
During the year, IEC subsidiary Intra Energy Tanzania Limited received administration fees of $4,999 for
administration services provided to NuEnergy (Tanzania) Limited, a related party of Graeme Robertson.
At 30 June 2015 a loan of US$150,000 (A$195,940) to Malcoal joint venture partner Consolidated Mining
Industries Limited, a private Malawian entity remained outstanding. The loan is to be repaid from first
dividends from Malcoal and interest is charged on the loan at the rate of 5% per annum.
In June 2013, IEC subsidiary Tancoal Mining Limited received a loan of TZS300,000,000 (A$196,000) from joint
venture partner the National Development Corporation of Tanzania. This loan remained outstanding at 30 June
2015.
At 30 June 2015 $39,081 was receivable from Geothermal Power Tanzania Limited and NuEnergy Gas
(Tanzania) Limited.
At 30 June 2015 $24,301 was receivable from NuAfrica Limited for reimbursement of expenses and Tanzagrain
Limited for services provided in a prior year, related parties to Graeme Robertson.
In January 2014 a hire purchase contract with an option to purchase four trucks was entered into with Extran
Limited, a related party of Graeme Robertson and David Mason. An amount of $230,341 was outstanding at 30
June 2015.
2014
At 30 June 2014 $97,174 was payable to Intrasia Mining Pte Ltd (a wholly owned subsidiary of Intrasia Capital
Pte Limited), a related party of Graeme Robertson relating to legal services and expense reimbursement.
$9,250 was payable to William Paterson for Directors fees.
During the year the Company resolved to pay Intrasia Capital Pty Limited, a related party of Graeme Robertson
and Jonathan Warrand, for accounting, administration, investor relations and back office support services to
IEC a monthly fee of $40,000 (plus GST). This fee was reviewed following the end of the period.
Page 62
Notes to the Financial Statements
FOR THE YEAR ENDED 30 JUNE 2015
28. RELATED PARTY TRANSACTIONS (CONT’D)
During the year the Company paid $64,257 in fees to Intrasia Mining Pte Ltd (a wholly owned subsidiary of
Intrasia Capital Pte Limited), a related party of Graeme Robertson, for the provision of legal services by a
qualified lawyer employed by Intrasia Capital Pte Ltd.
In January 2014 the Company raised A$1.5m by way of a partially underwritten Share Purchase Plan. The Plan
was partially underwritten by IEC Directors and their related parties, who received underwriting fees of 3% on
their portion of the shortfall:
Director
Related Party
Mr G
Robertson
Aspac Mining Limited
Mr J Warrand
Cobblyn Investments Pty Ltd
Mr D Mason
D&H Investments Pty Ltd and Rothstein Pty
Ltd
Mr W Paterson Lujeta Pty Ltd
Shares
underwritten
$’000
Underwriting fees
$’000
6,717,632
672
246,751
25
608,849
61
2,744,407
274
20
1
2
8
During the year, IEC subsidiary Intra Energy Tanzania Limited received administration fees of $19,039 for
administration services provided to Geothermal Power Tanzania Limited, a related party of Graeme Robertson,
David Mason and Jonathan Warrand.
During the year, IEC subsidiary Intra Energy Tanzania Limited received administration fees of $10,872 for
administration services provided to NuEnergy (Tanzania) Limited, a related party of Graeme Robertson.
During the year, IEC subsidiary Intra Energy Tanzania Limited received administration fees of $2,082 for
administration services provided to Tanzagrain Limited, a related party of Graeme Robertson.
At 30 June 2014 a loan of US$150,000 (A$160,000) to Malcoal joint venture partner Consolidated Mining
Industries Limited, a private Malawian entity remained outstanding. The loan is to be repaid from first
dividends from Malcoal and interest is charged on the loan at the rate of 5% per annum.
In June 2013, IEC subsidiary Tancoal Mining Limited received a loan of TZS300,000,000 (A$193,000) from joint
venture partner the National Development Corporation of Tanzania. This loan remained outstanding at 30 June
2014.
At 30 June 2014 $34,083 was receivable from Geothermal Power Tanzania Limited and NuEnergy Gas
(Tanzania) Limited.
29. FINANCIAL RISK MANAGEMENT
Exposure to credit and interest rate risks arises in the normal course of the Consolidated Entity’s businesses.
The Company has exposure to the following risks from their use of financial instruments:
Credit Risk
Liquidity Risk
Market risk i) Interest rate risk, ii) Foreign currency risk
This note presents information about the Company’s exposure to each of the above risks, their objectives,
policies and processes for measuring and managing risk, and the management of capital. Further quantitative
disclosures are included throughout this financial report.
The Board of Directors has overall responsibility for the establishment and oversight of the risk management
framework.
Risk management policies are established to identify and analyse the risks faced by the Company, to set
appropriate risk limits and controls, and to monitor risks and adherence to limits. Risk management policies
and systems are reviewed to reflect changes in market conditions and the Company’s activities. The Company,
through their training and management standards and procedures, aim to develop a disciplined and
constructive control environment in which all employees understand their roles and obligations.
Page 63
Notes to the Financial Statements
FOR THE YEAR ENDED 30 JUNE 2015
29. FINANCIAL RISK MANAGEMENT (CONT’D)
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, and arises principally from the Company’s receivables from customers
and investment securities.
Exposure to credit risk
The carrying amount of the Company’s financial assets represents the maximum credit exposure. The
Company’s maximum exposure to credit risk at the reporting date was:
Trade and Other Receivables
Cash and cash equivalents
TOTAL
Trade and other receivables
2015
$’000s
2,529
40
2,569
2014
$’000s
2,678
88
2,766
The Company’s receivables relate to GST and other taxation (including VAT, WHT and fuel relief receivables)
due from the Australian and Tanzanian taxation offices, trade receivables from coal sales.
Liquidity risk
Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they fall due. The
Company’s approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient
liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring
unacceptable losses or risking damage to the Company’s reputation. The Board monitors liquidity risk on a
monthly basis.
The Consolidated Entity’s policy is to ensure that it will always have sufficient cash to allow it to meet its
liabilities when they become due. To achieve this aim, it seeks to maintain cash balances to meet expected
requirements for a period of at least twelve months.
The Board receives cash flow projections on a monthly basis as well as information regarding cash balances. At
the balance sheet date, these projections indicated that the Group expected to have sufficient liquid resources
to meet its obligations, and forward expenditure commitments, under all reasonably expected circumstances
The following are the contractual maturities of financial liabilities, including estimated interest payments and
excluding the impact of netting agreements:
30 June 2015
CARRYING
AMOUNT
CONTRACTUAL
CASH FLOWS
6 MONTHS
OR LESS
6 – 12
MONTHS
1 – 2
YEARS
2 – 5
YEARS
MORE THAN
5 YEARS
$’000S
$’000S
$’000S
$’000S
$’000S
$’000S
$’000S
Non-derivative financial liabilities
Bank overdraft
644
644
644
7,260
7,260
7,260
–
–
–
–
–
–
Trade and other
payables
Interest bearing
liabilities
Other liabilities
3,234
3,788
925
798
1,416
649
–
–
–
–
–
–
TOTAL
11,138
11,692
8,829
798
1,416
649
Page 64
–
–
–
–
–
Trade and other
payables
Interest bearing
liabilities
Other liabilities
TOTAL
Cash and receivables
Financial assets
Cash
Trade & other
receivables
TOTAL
30 June 2014
Financial assets
Cash
Notes to the Financial Statements
FOR THE YEAR ENDED 30 JUNE 2015
29. FINANCIAL RISK MANAGEMENT (CONT’D)
30 June 2014
CARRYING
AMOUNT
CONTRACTUAL
CASH FLOWS
6 MONTHS
OR LESS
6 – 12
MONTHS
1 – 2
YEARS
2 – 5
YEARS
MORE THAN
5 YEARS
$’000S
$’000S
$’000S
$’000S
$’000S
$’000S
$’000S
Non-derivative financial liabilities
Bank overdraft
522
522
522
5,386
5,386
5,386
–
–
–
–
–
–
3,633
193
9,734
3,633
1,902
245
415
1,071
193
–
–
193
–
9,734
7,810
245
608
1,071
–
–
–
–
–
The following are the contractual maturities of financial assets including receivables.
30 June 2015
CARRYING
AMOUNT
CONTRACTUAL
CASH FLOWS
6 MONTHS
OR LESS
6 – 12
MONTHS
1 – 2
YEARS
2 – 5
YEARS
MORE THAN
5 YEARS
$’000S
$’000S
$’000S
$’000S
$’000S
$’000S
$’000S
40
40
40
2,529
2,569
2,529
2,529
2,569
2,569
–
–
–
–
–
–
–
–
–
–
CARRYING
AMOUNT
$’000S
CONTRACTUAL
CASH FLOWS
$’000S
6 MONTHS
OR LESS
$’000S
6 – 12
MONTHS
$’000S
1 – 2
YEARS
$’000S
2 – 5
YEARS
$’000S
MORE THAN
5 YEARS
$’000S
–
–
–
–
160
160
–
–
–
–
–
–
88
88
88
Trade
receivables
&
other
TOTAL
2,678
2,766
2,678
2,518
2,766
2,606
Page 65
Notes to the Financial Statements
FOR THE YEAR ENDED 30 JUNE 2015
29. FINANCIAL RISK MANAGEMENT (CONT’D)
30 June 2015
Financial assets
AVERAGE
INTEREST RATE %
FLOATING
INTEREST RATE %
< 1 YEAR
$’000S
1 – 5 YEARS
$’000S
TOTAL
$’000S
Cash and cash equivalents
0%
Trade and other receivables
TOTAL
Financial liabilities
Bank overdraft
Trade and other payables
Interest bearing liabilities
Other liabilities
TOTAL
NET FINANCIAL ASSETS/ (LIABILITIES)
-
-
–
–
–
–
–
–
–
–
–
8%
–
8%
–
–
–
40
2,529
2,569
644
7,260
1,448
–
–
–
–
–
–
–
40
2,529
2,569
644
7,260
1,786
3,234
–
–
–
–
(6,783)
(1,786)
(8,569)
30 June 2014
Financial assets
Cash and cash equivalents
Trade and other receivables
TOTAL
Financial liabilities
Bank overdraft
Trade and other payables
Interest bearing liabilities
Other liabilities
TOTAL
NET
(LIABILITIES)
FINANCIAL
ASSETS/
Market risk
AVERAGE
INTEREST RATE %
FLOATING
INTEREST RATE %
< 1 YEAR
$’000S
1 – 5 YEARS
$’000S
TOTAL
$’000S
0%
–
–
–
–
–
–
–
–
–
–
8.0%
–
8.0%
–
–
–
88
2,518
2,606
522
5,386
2,147
–
160
160
88
2,678
2,766
–
–
522
5,386
1,486
3,633
–
193
193
8,055
1,679
9,734
(5,449)
(1,519)
(6,968)
Market risk is the risk that changes in market prices, such as interest rates and equity prices will affect the
Company’s income or the value of its holdings of financial instruments. The objective of market risk
management is to manage and control market risk exposures within acceptable parameters, while
optimising the return.
Page 66
Notes to the Financial Statements
FOR THE YEAR ENDED 30 JUNE 2015
29. FINANCIAL RISK MANAGEMENT (CONT’D)
(i) Interest rate risk
Profile
At the reporting date the interest rate profile of the Company’s interest-bearing financial instruments was:
Financial assets
Financial liabilities
TOTAL
2015
$’000S
40
(3,878)
(3,838)
2014
$’000S
88
(4,155)
(4,067)
The Company’s cash at bank and on hand and short term deposits had a weighted average floating interest
rate at year end of 0%. The Company currently does not engage in any hedging or derivative transactions to
manage interest rate risk.
Interest rate sensitivity
A sensitivity of 10% has been selected as this is considered reasonable given the current level of both short
term and long term interest rates. A 10% movement in interest rates at the reporting date would have
increased (decreased) equity and profit and loss by the amounts shown below. This analysis assumes that
all other variables, in particular foreign currency rates, remain constant.
30 June 2015
Financial assets
Cash and cash equivalents
Interest bearing liabilities
Total
30 June 2014
Financial assets
Cash and cash equivalents
Interest bearing liabilities
Total
Fair values versus Carrying amounts
PROFIT OR LOSS
EQUITY
10% INCREASE
$’000S
10% DECREASE
$’000S
10% INCREASE
$’000S
10% DECREASE
$’000S
–
(38)
(38)
–
38
38
–
(38)
(38)
–
38
38
PROFIT OR LOSS
EQUITY
10% INCREASE
$’000S
10% DECREASE
$’000S
10% INCREASE
$’000S
10% DECREASE
$’000S
–
(33)
(33)
–
33
33
–
(33)
(33)
–
33
33
The Group’s accounting policies and disclosures may require the measurement of fair values for both
financial and non-financial assets and liabilities. The Group has an established framework for fair value
measurement. When measuring the fair value of an asset or a liability, the Group uses market observable
data where available.
Fair values are categorised into different levels in a fair value hierarchy based on the following valuation
techniques:
Page 67
Notes to the Financial Statements
FOR THE YEAR ENDED 30 JUNE 2015
29. FINANCIAL RISK MANAGEMENT (CONT’D)
Level 1: quoted prices (unadjusted) in active markets for identical assets and liabilities.
Level 2: inputs other than quoted prices included in Level 1 that are observable for the asset or
liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).
Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs).
If the inputs used to measure the fair value of an asset or liability can be categorised in different levels of
the fair value hierarchy, then the fair value measurement is categorised in its entirety in the same level of
the fair value hierarchy as the lowest level input that is significant to the entire measurement.
The Group recognises transfers between levels of the fair value hierarchy at the end of the reporting
period during which the change has occurred.
Fair values of recognised financial assets and liabilities with their carrying amounts shown in the balance
sheet are as follows:
30 June 2015
Cash and cash
equivalents
CARRYING
AMOUNT
FAIR VALUE
TOTAL
QUOTED MARKET
PRICE (LEVEL 1)
OBSERVABLE INPUTS
(LEVEL 2)
NON-MARKET OBSERVABLE
INPUTS (LEVEL 3)
40
40
40
–
Loans and receivables(1)
2,654
2,654
Trade and other
payables(1)
Interest bearing
liabilities(2)
Other payables
(7,260)
(7,260)
(3,234)
(3,234)
-
-
–
–
–
–
2,654
(7,260)
(3,234)
-
TOTAL
(7,800)
(7800)
40
(7,840)
30 June 2014
Cash and cash
equivalents
CARRYING
AMOUNT
FAIR VALUE
TOTAL
QUOTED MARKET
PRICE (LEVEL 1)
OBSERVABLE INPUTS
(LEVEL 2)
NON-MARKET OBSERVABLE
INPUTS (LEVEL 3)
88
88
88
–
Loans and receivables(1)
2,484
2,484
Trade and other
payables(1)
Interest bearing
liabilities(2)
(5,386)
(5,386)
(3,633)
(3,633)
Other payables
(193)
(193)
–
–
–
–
TOTAL
(6,640)
(6,640)
88
2,484
(5,386)
(3,633)
(193)
(6,728)
Page 68
–
–
–
–
–
–
–
–
–
–
–
–
Notes to the Financial Statements
FOR THE YEAR ENDED 30 JUNE 2015
29. FINANCIAL RISK MANAGEMENT (CONT’D)
Estimation of fair values
(1)
Receivables/payables
For receivables/payables with a remaining life of less than six months, the notional amount is deemed to
reflect the fair value. All other receivables/payables are discounted to determine the fair value, if the effect of
discounting is material.
(2)
Interest bearing liabilities
The fair value is estimated at the present value of future cash outflows. Future cash flows are discounted using
appropriate market rates.
(ii)
Foreign currency risk
As a result of activities overseas, the Company’s Consolidated Statement of Financial Position can be affected
by movements in exchange rates.
The Company also has transactional currency exposures. Such exposure arises from transactions dominated in
currencies other than the functional currency of the entity.
The Company currently does not engage in any hedging or derivative transactions to manage foreign currency
risk.
The Company’s exposure to foreign currency risk throughout the current year primarily arose from the Group’s
100% interest in Intra Energy (Tanzania) Limited and its controlling interests in Tancoal and Tanzacoal
(collectively “Tanzanian subsidiaries”), whose functional currencies are Tanzanian Shillings. Additionally the
Company has exposure to foreign currency risk through the Group’s 90% interest in Malcoal Mining Limited
and 100% interest in Intra Energy Trading Malawi Limited (collectively “Malawian subsidiaries”), whose
functional currencies are Malawian Kwacha. Foreign currency risk arises on translation of the net assets of
these entities to Australian dollars. The foreign currency gains or losses arising from this risk are recorded
through the foreign currency translation reserve.
The Company is additionally exposed to the USD by way of its USD denominated loans to the KCB Bank
Tanzania Limited. The foreign currency gains or losses arising from this risk are recorded in the Statement of
Comprehensive Income.
Sensitivity Analysis for Foreign Currency risk
A sensitivity of 10% has been selected as this is considered reasonable given historic and potential future
changes in foreign currency rates. This has been applied to the net assets of the Company. This sensitivity
analysis is prepared at reporting date.
A 10% strengthening of the Australian dollar against the Tanzanian Shilling and Malawian Kwacha at 30 June
2015 would have decreased the net liabilities of the Tanzanian and Malawian subsidiaries by A$3.5m (2014:
$3.0m). A 10% weakening of the Australian dollar against the Tanzanian Shilling and Malawian Kwacha at 30
June 2015 would have increased the net liabilities of the Tanzanian and Malawian subsidiaries by A$2.9m
(2014: $3.3m).
There would be no impact on profit or loss arising from these changes in the currency risk variables as all
changes in value are taken to a reserve.
A 10% strengthening of the Australian dollar against the United States dollar at 30 June 2015 would have
decreased net interest bearing liabilities of the KCB loan and hire purchases by A$0.4m (2014: $0.4m). A 10%
weakening of the Australian dollar against the United States dollar at 30 June 2015 would have increased net
interest bearing liabilities of the KCB loan and hire purchases by A$0.3m (2014: $0.4m).
Page 69
Notes to the Financial Statements
FOR THE YEAR ENDED 30 JUNE 2015
29. FINANCIAL RISK MANAGEMENT (CONT’D)
The impact on profit or loss arising from changes in this currency risk variables would be taken to the
Statement of Comprehensive Income.
The above analysis assumes that all other variables, in particular interest rates and equity prices, remain
constant.
Capital management
The Board’s policy is to maintain a strong capital base so as to maintain investor, creditor and market
confidence. There were no changes in the Company’s approach to capital management during the year.
Neither the Company nor any of its subsidiaries are subject to externally imposed capital requirements.
30. PARENT ENTITY DISCLOSURES
Financial Position of Intra Energy Corporation Limited
2015
$’000S
2014
$’000S
Assets
Current Assets
Cash and cash equivalents
Trade and other receivables
Other assets
Total Current Assets
Non-Current Assets
Other receivables
Equity accounted investments
Exploration expenditure
Interest in subsidiaries
Property, plant and equipment1
Loans to subsidiaries
Loans to subsidiaries provided for
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 attributed to equity holders of the Company
Total Equity
8
10
19
37
196
989
-
4,136
180
45,326
(45,326)
5,501
5,538
656
39
695
4,843
69,387
3,261
(67,805)
4,843
4,843
20
26
16
62
159
-
126
4,136
221
45,760
(45,760)
4,642
4,704
243
33
276
4,428
67,858
2,805
(66,235)
4,428
4,428
1. The ultimate recovery of investments and loans to subsidiaries is dependent on the successful development and
commercial exploitation or sale of the subsidiary’s exploration assets.
2. The Parent has a net current asset deficiency of $0.66m
Page 70
Notes to the Financial Statements
FOR THE YEAR ENDED 30 JUNE 2015
30. PARENT ENTITY DISCLOSURES (CONT’D)
Financial Performance of Intra Energy Corporation Limited
Loss for the year
Total Comprehensive Income
2015
$’000S
(1,570)
(1,570)
2014
$’000S
(4,808)
(4,808)
The parent entity has not entered into any guarantees in relation to debts of its subsidiaries, has no contingent
liabilities and has no commitments for the acquisition of property, plant and equipment.
Page 71
ASX Additional Information
FOR THE YEAR ENDED 30 JUNE 2015
Additional information required by the Australian Securities Exchange Limited and not shown elsewhere in this
report is as follows. The information is current as at 1 September 2015.
(a)
Distribution of Equity Securities
The numbers of shareholders, by size of holding, in each class of share are:
1
1,001
5,001
10,001
100,001
1,000
5,000
10,000
100,000
and over
The number of shareholders holding less than a marketable parcel of shares
are:
(b)
Twenty Largest Shareholders
The names of the twenty largest holders of quoted shares are:
1
2
3
4
ASPAC MINING LIMITED
LUJETA PTY LTD
FARJOY PTY LTD
RBC INVESTOR SERVICES AUST NOMINEES PTY
LIMITED
5 MARA SUPERANNUATION PTY LTD
6 MR GRAEME LANCE ROBERTSON
7 NUVOLARI CAPITAL LIMITED
8 MR PETER TSEGAS
9
COBBLYN INVESTMENTS PTY LTD
10
JP MORGAN NOMINEES
11 MARA PTY LTD
12 D & H MASON INVESTMENTS PTY LTD
13 LOMACOTT PTY LTD
14 DRFT MANAGEMENT PTY LTD
15 OZEA PTY LTD
16 MR CRAIG IAN BROWN & MRS JENNY LEE BROWN
17 HSBC CUSTODY NOMINEES(AUSTRALIA) LIMITED A/C 3
18 PLATO PROSPECTING PTY LTD
18 MR ROSS FRANCIS STANLEY
19 MR EDWARD GARNET BRERETON & MRS MEGAN LESLIE
BRERETON
20 MR COLIN PRIESTLEY BELTON & MR MARK PRIESTLEY BELTON
Page 72
LISTED ORDINARY SHARES
NUMBER OF
HOLDERS
NUMBER OF SHARES
69
85
120
410
224
908
477
6,815
263,484
999,907
16,983,788
333,014,731
351,268,725
5,437,598
LISTED ORDINARY SHARES
NUMBER OF
SHARES
PERCENTAGE OF
SHARES
72,529,302
20.65%
34,179,370
30,482,763
13,846,968
12,184,807
9,675,779
8,835,770
8,731,766
7,360,818
6,577,014
6,225,390
5,783,701
4,500,000
4,200,000
3,021,154
2,704,994
2,222,222
2,000,000
2,000,000
9.73%
8.68%
3.94%
3.47%
2.75%
2.52%
2.49%
2.10%
1.87%
1.77%
1.65%
1.28%
1.20%
0.86%
0.77%
0.63%
0.57%
0.57%
1,851,851
0.53%
1,819,429
240,733,098
0.52%
68.53%
ASX Additional Information
FOR THE YEAR ENDED 30 JUNE 2015
Substantial Shareholders
(c)
The names of substantial shareholders who have notified the Company in accordance with section 671B of the
Corporations Act 2001 are:
ASPAC MINING LIMITED AND ASSOCIATES
LUJETA PTY LTD
MARA SUPERANNUATION PTY LTD AND ASSOCIATES
(d)
Schedule of Mining Tenements
NUMBER OF SHARES
PERCENTAGE OF
ORDINARY SHARES
113,601,280
34,179,370
18,410,197
32.34%
9.73%
5.24%
AREA OF INTEREST
TENEMENTS
% INTEREST
Tanzania
Tancoal Energy Limited
ML439/2011, PL6285/2009, PL7391/2011,
PL7392/2011, PL5380/2008, PL5474/2008,
PL7620/2012, PL7713/2012, PL5756/2009,
PL5903/2009, PL5030/2008, PL8999/2013
70%
Tanzacoal East Africa Mining Limited
PL6319/2010, PL7030/2011, PL6111/2009
85%
Malawi
Malcoal Mining Limited
ML0143/2005, EPL0174/2005, EPL376/2013,
EPL 377/2013, EPL0360/2012
Intra Energy Trading Limited
EPL0392/2013
Australia
Intra Energy Corporation Limited¹
E08/1494, E08/1495
90%
100%
100%
¹On 20 August 2015 the Company advised the market that the tenements lapsed on 2 July 2015
Page 73