Intra Energy Corporation Limited
(ABN 65 124 408 751)
Annual Financial Report
For the year ended 30 June 2021
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 Profit or Loss and Other 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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Corporate Directory
DIRECTORS
Graeme Robertson (Chairman)
Benjamin Dunn (Managing Director appointed 23 April 2021)
Troy Wilson
Alan Fraser
James Shedd
Marc Schwartz (resigned 9 February 2021)
COMPANY SECRETARY
Rozanna Lee
REGISTERED OFFICE - AUSTRALIA
Level 40, 2 Park Street
Sydney NSW 2000
Email: info@intraenergycorp.com.au
REGISTERED OFFICE - TANZANIA
Amverton Tower
Plot No 1127
Chole Road, Masaki
PO Box 23059
Dar es Salaam, Tanzania
SHARE REGISTRY
Link Market Service Limited
Level 12, 680 George Street
Sydney NSW 2000
Telephone: (02) 8280 7111
Facsimile: (02) 9287 0309
AUDITORS
Hall Chadwick
Level 40, 2 Park Street
Sydney NSW 2000
Telephone: (02) 9263 2600
Facsimile: (02) 9263 2800
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 Directors of Intra Energy Corporation Limited ("IEC", "Intra Energy" or "the Company"),
it is my pleasure to present my comments on the operations and the future directions of the Company for this
Annual Financial Report for 2021.
Over the last two years the Board of IEC has proceeded to remove the company from coal mining and instead
develop in gold and other minerals in Mozambique and gold/copper/nickel exploration and development in
Australia.
In doing this the Board has acknowledged that global warming and climate change are very real and definable
threats to the future of human society and that a reduction in carbon emissions are essential. However, it also
acknowledges that the major players in the release of carbon are the wealthy industrialised nations and that less-
developed economies should not be penalised in the utilisation of fossil fuels, particularly in support of
industrialisation and consequent poverty alleviation. The operations of the Tancoal Energy coal mine in Tanzania
remains important to East African progress and IEC will endeavour to work with parties prepared to support the
continued operation of the mining operations, while proceeding to develop mineral mining operations and
reducing its carbon footprint.
An Application has been approvd for a prospective lease on land at Louth, north of Cobar, NSW with drill ready
targets. The Lease will be 100% owned by IEC. The Talowla Project has potential for high-grade copper under
shallow cover.
Discussions are underway with a WA exploration company for IEC to acquire a share in the exploration of a very
interesting Ni-Cu-PGE project in WA which application is currently pending.
Further concessions are being reviewed in Australia. For the last two years IEC has been evaluating prime
opportunities in exploration properties in Australia to supplement its interests in the Mozambique gold project.
Intrafrican Resources Limited (Intrafrican), a wholly-owned subsidiary of IEC, registered in Mauritius, has
invested in an attractive gold concession in Mozambique, a nation mainly unexplored but with huge mineral
resources and a regulatory framework conducive to the realities of mining. Intrafrican currently owns 15% of
Intra Minerals Limited (IML), a company registered in Mauritius which owns 95% of the exciting Minas Do Lurio
Gold Project in central/northern Mozambique.
Intrafrican is looking to increase its equity in IML by private
placement and to also enable IML to continue the exploration programme in the Minas do Lurio Gold Project in
Mozambique with a targeted drilling campaign.
Considerable work has been completed to define the drilling campaign with substantial cost reduction. Due to
the focussed nature of the drilling, costs have been reduced from US$1.3 Million to US$400,000. An additional
US$200,000 will be necessary for the purchase of small dredges to enable commencement of trial alluvial mining
activities in 2022.
IEC’s 70% ownership of Tancoal Energy Limited (“Tancoal”) which operates the Ngaka coal mine in south west
Tanzania which is also 30% owned by the National Development Corporation of Tanzania (“NDC”) is manned
exclusively by Tanzanians. Thermal coal as a fuel is becoming increasingly unpopular in the world and the ability
to return anything to shareholders has become impossible in Tanzania due to declining markets, increased
competition and Government imposts considered by the Company to be arbitrary and unfair.
Tancoal’s 2021 production was 236,155 tonnes (2020: 496,393) tonnes. Stocks were maintained sufficiently for
the demand during the year.
IEC recorded a loss after tax and before minorities of (A$8,210,000) (2020: loss of A$17,186,000). The loss
included (A$5,329,000) impairment of the Tancoal mining and exploration assets due mainly to imposition of
Government royalties.
IEC continued to maintain its active presence in community development through the Government approved
Local Content Plan and Tancoal’s partnership with the local Women's Group and various other projects and
support given to the local communities.
Benjamin Dunn was appointed Managing Director of IEC on 23 April 2021 and will lead the Company’s focus on
Australian activities. Jim Shedd will remain as CEO and will oversee the move from coal and the development of
IML in Mozambique.
Page 4
Chairman’s Report
Marc Schwartz resigned from the Board on 9 February 2021.
The development of Intrafrican and gold, copper and nickel exploration interests in Australia promises to be the
sustainable and exciting future for IEC.
Sincerely
Graeme Robertson
Chairman – Intra Energy Corporation Limited
Page 5
Review of Operations
AUSTRALIAN MINERAL EXPLORATION
The Board of Intra Energy Corporation Limited (“IEC” or the “Company”) has over the last two years decided to
remove itself from fossil fuel production and instead focus on gold development in Mozambique and gold/copper
exploration in Australia.
There has been increased interest in the coal operations by African parties and IEC is discussing approaches for
participation by interested parties to enable it to exit.
An Application has been lodged for a highly prospective lease on land at Louth, north of Cobar, NSW with drill
ready targets. The Lease will be 100% owned by Intra Eastern Pty Ltd, a wholly owned subsidiary of IEC. The
Talowla Project has potential for high-grade copper under shallow cover. According to Mr Kim Stanton-Cook,
IEC’s consulting geologist, Talowla exhibits interesting magnetics and electromagnetics with priority drilling
targets established. Mr Stanton-Cook was involved in drilling in the area in the 70’s. Advice has subsequently
been received that the application has been approved.
Discussions are underway with a WA exploration company for IEC to acquire a share in the exploration of a very
interesting Ni-Cu-PGE project in WA which application is currently pending.
For the last two years IEC has been evaluating prime
Further concessions are being reviewed in Australia.
opportunities in exploration properties in Australia to supplement its interests in the Mozambique gold
project. The focus is on gold, copper and nickel minerals.
MOZAMBIQUE GOLD
Intrafrican Resources Limited (“Intrafrican”), a fully owned subsidiary of IEC registered in Mauritius has invested
in Intra Minerals Limited (“IML“), a company also registered in Mauritius. Intrafrican currently owns 15% of IML
which is the 95% owner of the Lurio Gold Project in Mozambique. Intrafrican is looking to increase it’s equity in
IML by private placement and to also enable IML to continue the exploration programme in the Minas do Lurio
Gold Project in Mozambique with a targeted drilling campaign.
Considerable work has been completed to define the drilling campaign with substantial cost reduction. Due to
the focussed nature of the drilling, costs have been reduced from US$1.3 Million to US$400,000. An additional
US$200,000 will be necessary for the purchase of small dredges to enable commencement of trial mining
activities in 2022.
The exploration project currently comprises a 168.56 km2 large prospecting license (8416L) in the historically
underexplored Lúrio Belt. An initial trenching and sampling program has been completed at Savane, a
prospective area within the prospecting license. Samples of quartz and soil have been taken, crushed, washed
and processed indicating gold grades between 4 and 6 g/t with high recovery rates.
An independent expert, Benedikt Steiner (CGeol EurGeol) retained by IML to advise on the project has completed
a non-JORC technical report. Mr Steiner comments that the project represents a significant first-mover
opportunity into a previously unrecognised gold mineralisation trend along the Neoproterozoic Lúrio Belt.
Prospecting and early stage exploration campaigns during 2017-2020 have confirmed a shallow exploration
target at the Savane locality. Multiple alluvial and eluvial occurrences of free and refractory gold, as well as
structurally-controlled bedrock mineralisation are hosted in quartz veins and occur in deformed granulites and
granulitic gneisses. The stacked, 2-7 cm wide quartz veins are generally shallowly (10-20°) dipping and
predominantly occur along open East-West trending structural corridors, defined by the intersection of regional
shear and thrust faults.
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, Rwanda, Zambia and Malawi.
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Review of Operations
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)
FY21
603,977
236,155
234,538
FY20
2,297,569
496,393
523,057
Tancoal produces a high quality thermal coal with an energy of 6,000K~6,300Kcals/kg which consistently meets
client specifications.
Tancoal has been producing and selling coal in Tanzania since 2011. Coal from the mine is transported on a 52
kilometre haul road to the Sales Point at Kitai where the coal undergoes final processing and is then sold and
loaded into trucks provided by the respective consumers. Its main mining licence has been renewed subsequent
to 30 June 2021.
OCCUPATIONAL HEALTH, SAFETY AND ENVIRONMENT (“OHSE”)
Like any other financial year, OHSE remain the priority to IEC. Tancoal continued to monitor and make sure we
minimize environmental impact caused by our operations by following the Environmental Impact Assessment
Plan and regulatory requirements, and ensure safe work practice as required by OSHA.
Like previous financial years, the annual tree planting programme again saw Tancoal transplant a total of 10,000
tree seedlings of indigenous species. Trees were planted around the mine site and stockpile area at the mine,
villages surrounding the mine site, the haul road and stockpile area at the Kitai sales point and others were given
to the Kitai Prison which is close to the Kitai sales point. We have also isolated tree farms in two villages of which
Tancoal is taking care as sample farms to surrounding communities.
Upgrade of Storm water trenches and ponds were done before the rainy season in accordance with the mine
development plan. The monitoring of acid water and suppression of mine dust continues. Blasting is controlled
by monitoring sound level, vibration and dust emission during blasting to ensure they do not exceed the required
standard set by Tanzania Bureau of Standard (TBS).
Annual Environmental Audit was conducted as per directive from National Environmental Management Council
(NEMC) as required by the law.
EXPLORATION
Gold exploration continues through an associated company, Intra Minerals Limited (Mauritius) in the Cabo
Delgado and Nampula Provinces of Mozambique. The initial gold exploration programme ended with the advent
of the wet season in Africa and capital requirements. Gold and other minerals are being explored by IEC in
Australia and Intrafrican (Mauritius).
Coal exploration is concentrated on tenements being maintained in good standing and supporting mine
development work.
Project
Tanzania
Tancoal – North
Tancoal – South
Total JORC resources
Table 1 - Intra Energy JORC resources
Measured (Mt)
Indicated (Mt)
Inferred (Mt)
Total (Mt)
51.00
25.53
76.53
73.70
71.80
145.50
71.73
63.00
134.73
196.43
160.33
356.76
COMPETENT PERSON STATEMENT
MBALAWALA/MBUYURA-MKAPA
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, the Resource Model Assessment and
Review, Ngaka Project Area as at 20 July 2010 and the Updated Raw Coal Resource Estimate provided by JB
Page 7
Review of Operations
Mining Services Pty Ltd dated 30 September 2017 and 30 November 2017 and have been reviewed by Mr Phillip
Sides. 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”. Mr Sides is a consultant to JB Mining Services Pty Ltd and has
sufficient experience to qualify as a Competent Person as defined in The JORC Code. Mr Sides consents to the
inclusion of the matters based on his information in the form and context in which it appears.
CORPORATE
Operating cash flow was restricted in FY 2021 due to the difficult operating conditions. Tancoal’s banking
facilities with KCB Bank of Tanzania were extended to February 2022.
Marc Schwartz resigned from the Board on 10 February 2021.
Benjamin Dunn was appointed Managing Director of IEC on 23 April 2021.
On 23 April 2021, a placement was completed to Mr Dunn of 10,000,000 shares @ 0.64 cents per shares
On 3 September 2021, 555,555 shares were issued @ 0.90 cents per share in consideration for services to IEC by
Jodama Pty Ltd in managing the Louth exploration application.
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.
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 Tanzania is 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.
In implementing the Corporate Social Responsibility (CSR) rules, Tancoal again submitted CSR for 2021 to the
local Authority, whereby we have started building two classrooms for the Mtunduwaro village Primary school.
The Mbalawala Women’s Organisation (“MWO”) in Tanzania that has been supported by the company for many
years continues to go from strength to strength as their operations expand with the growth of the mine.
In Mozambique IML follows ESG requirements and hires from within the local community and maintains a close
relationship to develop suitable CSR initiatives once development work re-commences.
Similar ESG/CSR standards will be applied in Australia to enhance the sustainability of IEC development projects.
Page 8
Directors Report
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
Troy Wilson
Non-Executive Director
(appointed 2 October
2017)
Page 9
Graeme joined the Board in November 2010 as Non-Executive
Chairman and was appointed Executive Chairman in January 2011
and Non-Executive Chairman in October 2014. He has over forty
years’ experience
infrastructure and power
development industries. Graeme is currently Chairman of the
Intrasia Capital Pte Ltd in Singapore a family office with corporate
and financial services operating from Mauritius into Africa.
the coal,
in
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 developments
including directorships with the Port of Brisbane Authority and
Washington H. Soul Pattinson & Co Ltd, one of Australia’s oldest
listed companies as well as AfrAsia Bank Ltd in Mauritius where he
is currently Chairman of the AfrAsia Foundation for education to
the underprivileged.
Current directorships include Minbos Limited (ASX: MNB) and
Ekada Capital Limited a public non-listed company in Mauritius for
wealth management.
Graeme was the recipient of the Asia 500 Award in 2000 and the
Coaltrans Lifetime Achievement Award in 2010 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.
Troy is the Managing Director and owner of Gigajule Energy Pty Ltd
and is widely recognized in Australia and internationally as a Coal
Bed Methane (CBM) completion and production expert with over
20 years’ experience in this field. Troy’s most recent experience
includes the development of CBM in Africa, flowing gas from the
first Surface to Inseam Wells in Botswana, being the lead in the
production enhancement team taking the gas field from 8tjs to
17tjs in 6months for Westside Corporation. He has previously been
Operations Manager with Mitchell Drilling Corporation, developing
the production for Peabody (North Goonyella) and A.J. Lucas.
Troy currently sits on the Board of Intrasia Securities limited and is
advising several CBM development companies in South Africa,
Botswana, Zimbabwe and in Australia.
Directors Report
Alan Fraser
Non-Executive Director
(appointed 24
August 2018)
Benjamin Dunn
Executive Director
(appointed 23 April
2021)
Marc Schwartz
Non-Executive Director
(appointed 31 July 2019,
resigned 9 February
2021)
James (Jim)
Shedd
Managing Director 7
November 2018 – 23
April 2021), CEO
appointed 27 December
2016)
Page 10
Mr Fraser has over 30 years’ experience in greenfield mineral
exploration, project management and mine construction. He has
managed base metal and gold exploration projects through the
stages of tenement acquisition, joint venture negotiation, obtaining
regulatory approvals and the management of field exploration
programs, at times in remote locations. He has worked extensively
across the Asis -Pacific region especially in Australia and Asia.
in NuEnergy's acquisition of
Alan served as CEO of New Holland Mining Limited, an ASX listed
gold and base metal exploration and production company, now
NuEnergy Gas Limited, having been a director since 1992. Alan was
instrumental
the coal and
unconventional gas assets in Indonesia. He stepped down as CEO
to ensure new leadership could move the company forward with its
focused gas strategy. Alan was engaged in the IPO and listing and
served as MD and Chairman of Resource Base Limited another ASX
listed company engaged in gold exploration and production with
activities in Australia, retiring in 2016. Mr Fraser has a vast
knowledge of working with ASX listed companies and helping to
create value for the Australian investment community.
Mr Dunn has over 20 years international experience in the
Legal, Equity and Capital Markets in Australian and Asia, primarily
focused on the resources sector. Practicing law before attaining an
MBA from the Melbourne Business School, Mr Dunn has
subsequently held senior positions with international investment
houses including Citigroup, JP Morgan and CLSA. Mr Dunn now
divides his time between his own resource focused investment
company and providing advice to a London based Family Office.
Marc has had a very successful business career starting at
Macquarie Bank to being Managing Director of Pascoes Pty Ltd
from 2008 to 2018, which employed approximately 150 people
across multiple manufacturing sites and manufactured or
distributed over 400 items to retailers and brand owners. Amongst
other varied business interests, he is currently a Director of Gelflex
Laboratories which is the largest manufacturer of contact lenses in
the Southern Hemisphere. Marc holds a Bachelor of Computer
Science and Financial Mathematics from the University of Western
Australia.
Jim has been CEO of the Company since December 2016 and has
been pivotal in the development of IEC’s mining operations in
Tanzania. He has developed a strong Tanzanian team and improved
mine efficiency under challenging conditions. Jim is also the CEO of
Intrafrican Resources Ltd (IRL) which is a 100% owned subsidiary of
IEC in Mauritius which currently holds 15% of Intra Minerals (IML),
which Jim is also a director, that owns 95% of Minas Do Lurio (MDL)
Gold project in Mozambique.
Jim graduated in business from the University of Maryland, USA,
and after serving as a combat engineer and productivity analyst in
the US Armed Forces, has over 20 years’ experience in the mining
industry specialising in general mine, turnaround and productivity
management. Jim also holds an MBA from Regis University,
Directors Report
COMPANY SECRETARY
Company Secretary
Rozanna Lee
B. Com (Hons),
LLB, GradDipACG,
AGIA, AGIS
CORPORATE STRUCTURE
Colorado, USA. He has lived and worked in over 14 countries
worldwide including Tanzania, Indonesia and Australia. He has held
positions in Indonesia, Senegal and Western Australia as a
performance improver in mines on behalf of McKinsey Consultants.
Rozanna has acted as Company Secretary of IEC since October
2011. She holds both commerce and law degrees from the
University of Queensland and is an Associate Member of the
Governance Institute of Australia.
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 21 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:
G Robertson
B Dunn
T Wilson
A Fraser
Special Responsibilities
Non-Executive Chairman
Executive Director
Non-Executive Director
Non-Executive Director
M Schwartz
Non-Executive Director1
J Shedd
1Mr Marc Schwartz resigned 9 February 2021
Managing Director/CEO
Ordinary
Shares
131,306,585
10,000,000
9,058,309
Profit/(loss) Per Share
Basic Profit/(loss) per share (cents)
2021
(1.40)
2020
(3.04)
NATURE OF OPERATIONS AND PRINCIPAL ACTIVITIES
The principal activities of the entities within the Consolidated Entity during the year were coal production and
gold exploration in South Eastern Africa and gold, copper and nickel exploration in Australia.
OPERATING REVIEW
The Consolidated Entity’s operations are discussed in detail in the Review of Operations which can be found on
pages 6 to 8 of this Annual Financial Report.
REVIEW OF FINANCIAL POSITION
The Consolidated Entity recorded an operating loss after income tax $8.21m (2020 Loss: $17.19m).
Page 11
Directors Report
CAPITAL STRUCTURE
As at the date of signing this report, the Company had 398,279,585 fully paid ordinary shares on issue.
DIVIDEND
No dividend was paid or declared during the year ended 30 June 2021.
CASH FROM OPERATIONS
The net cash inflow from operations of $1.799m (2020: $1.96m). The Group had a net overdraft of $0.249m at
year end with $0.548m cash at bank and a bank overdraft facility of $0.797m.
SIGNIFICANT CHANGES IN THE STATE OF AFFAIRS
There are no significant changes to the state of affairs of the Company.
SIGNIFICANT EVENTS AFTER THE BALANCE DATE
On 3 September 2021, 555,555 shares were issued @ 0.90 cents per share in consideration for services to IEC.
On 23 July 2021 the main mining licence for Tancoal in Tanzania was renewed.
The Company was advised on 9 September 2021 that its ELA6305 Application at Louth, NSW had been approved.
Aside from the 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 2021, there were no unissued ordinary shares under option.
MEETINGS OF DIRECTORS
Directors
Mr G Robertson
Mr B Dunn1
Mr T Wilson
Mr A Fraser
Mr M Schwartz2
Mr J Shedd
¹ Appointed 23 April 2021
2 Resigned 9 February 2021
Attended
Available to attend
9
2
8
9
6
9
9
2
9
9
9
9
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
Page 12
Directors Report
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 $170,705
(2020: $110,557) 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.
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 2021, 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 publishes its Corporate Governance statement on its website rather than in its Annual Report. The
Corporate Governance statement may be viewed or downloaded at: www.intraenergycorp.com.au. Copies of
the Group policies referred to in the Corporate Governance Statement are also posted on the website.
Page 13
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 2021.
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 2021 the function of the Remuneration Committee (“the Committee”) was carried out by the Board.
The function of the Board in fulfilling its corporate governance responsibilities with respect to remuneration is
by reviewing and making appropriate recommendations on:
(a) Remuneration packages of Non-Executive Directors, 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. In August
2020 the Directors agreed to suspend payment of their fees until the Company had sufficient funds to make the
payments. At 30 June 2021 the amount owed to Directors is A$460,722,
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.
Executive Directors’ and Senior Management 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.
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);
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Remuneration Report
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.
KEY MANAGEMENT PERSONNEL
During the year ended 30 June 2021 the Key Management Personnel (“KMP”) of IEC were:
Name
Position Held
Mr Graeme Robertson
Non-Executive Chairman
Mr Benjamin Dunn
Managing Director
Mr Troy Wilson
Mr Alan Fraser
Mr Marc Schwarz1
Mr James Shedd
Ms Kerry Angel2
Non-Executive Director
Non-Executive Director
Non-Executive Director
Chief Executive Officer
Chief Financial Officer
1Mr Marc Schwarz resigned 9 February 2021
2Ms Kerry Angel resigned 16 May 2021
Page 15
Remuneration Report
B. DETAILS OF REMUNERATION
2021
Salary and
fees
$
NON-EXECUTIVE DIRECTORS
Mr G Robertson
113,363
Mr B Dunn1
Mr T Wilson
Mr A Fraser
Mr M Schwartz2
Mr J Shedd
7,562
40,000
40,000
29,995
449,470
KEY MANAGEMENT PERSONNEL
Ms K Angel3
Total
257,388
937,778
Short-term
Post-Employment
Long-term
Share-based Payment
Cash bonus
$
Non-monetary benefits
$
Superannuation
$
Retirement Benefits
$
Long service leave
$
Shares
$
Options
$
Incentive plans
$
TOTAL
$
% of Remuneration
granted as options
%
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
113,363
7,562
40,000
40,000
29,995
449,470
257,338
937,778
–
–
–
–
–
–
–
–
1Appointed 23 April 2021, 2Resigned 9 February 2021, 3Resigned 16 May 2021
Short-term
Post-Employment
Long-term
Share-based Payment
Cash bonus
$
Non-monetary benefits
$
Superannuation
$
Retirement Benefits
$
Long service leave
$
Shares
$
Options
$
Incentive plans
$
TOTAL
$
% of Remuneration
granted as options
%
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
116,597
40,000
40,000
36,667
496,154
293,656
1,023,074
–
–
–
–
–
–
–
2020
Salary and
fees
$
NON-EXECUTIVE DIRECTORS
Mr G Robertson
Mr T Wilson
Mr A Fraser
Mr M Schwartz1
Mr J Shedd
116,597
40,000
40,000
36,667
496,154
KEY MANAGEMENT PERSONNEL
Ms K Angel
Total
293,656
1,023,074
1Appointed 31 July 2019
Page 16
Remuneration Report
C. CASH BONUSES
There were no cash bonuses paid during the year.
D. SHARE BASED PAYMENTS
There were no share-based payments made during the year.
E. OPTIONS ISSUED AS PART OF REMUNERATION
No options were issued as part of remuneration during the year (2018: Nil)
EMPLOYMENT CONTRACTS OF DIRECTORS AND EXECUTIVES
Mr Graeme Robertson‘s Non-Executive Chairman’s fees are $85,000 per annum. Mr Robertson is also the Non-
Executive Chairman of Tancoal Energy Limited (Tancoal), a 70% owned subsidiary of IEC. During the year he
received director’s fees of US$21,176 from Tancoal.
Mr Benjamin Dunn was employed as Managing Director on 23 April 2021, he is being paid fees equivalent to
Non-Executive Director’s fees of $40,000, Mr Dunn will not draw a full time salary until such time as the Board is
satisfied with the strategic direction of the Company and its balance sheet is strengthened.
Mr Troy Wilson was employed as Non-Executive Director on 4 October 2017 and his Non-Executive Director’s
fees are $40,000 per annum.
Mr Alan Fraser was employed as Non-Executive Director on 24 August 2018 and his Non-Executive Director’s fees
are $40,000 per annum.
Mr Marc Schwartz was employed as Non-Executive Director from 31 July 2019 to 10 February 2021 and his Non-
Executive Director’s fees were $40,000 per annum.
Mr James (Jim) Shedd was appointed Managing Director of IEC from 7 November 2018 and has been employed
as Chief Executive Officer from 27 December 2016 for an indefinite period until terminated by either party by
giving not less than three months’ notice. Mr Shedd’s salary is US$280,000 and A$40,000 per annum. Mr Shedd
is also a non-executive director of Tancoal Energy Limited (Tancoal), a 70% owned subsidiary of IEC for which
during the year he received director’s fees of US$25,714 from Tancoal.
The key terms of Mr Shedd’s remuneration package are as follows:
Total Fixed Remuneration (TFR) of US$280,000 and A$40,000 (including superannuation contributions),
subject to annual review;
Eligibility to participate in the Company’s incentive scheme as approved by the Board from time to time;
Ms Kerry Angel was employed as the Chief Financial Officer until her resignation 16 May 2021. Ms Angel’s salary
was US$170,000 and A$40,000 per annum including superannuation.
Each employment contract of Executive Directors and Executives includes:
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
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 2020.
Page 17
Remuneration Report
F. 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:
2021
Balance at
beginning of
year
Granted
during the
year as
compensation
Received
during the year
on exercise of
options
Changes during
the year*
Balance at the
end of the year
Mr G Robertson
131,556,585
Mr B Dunn1
Mr T Wilson
Mr A Fraser
10,000,000
–
–
Mr M Schwarz2
9,058,389
Mr J Shedd
Ms K Angel3
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
131,556,585
10,000,000
–
–
9,058,389
–
–
Total
150,614,974
150,614,974
–
1Mr Benjamin Dunn was appointed 23 April 2021, 2Mr Marc Schwarz resigned 9 February 2021, 3Ms Kerry Angel resigned 16
May 2021
*Changes during the year represent shares acquired or sold by KMP or their associates
–
–
2020
Balance at
beginning of
year
Granted
during the
year as
compensation
Received
during the year
on exercise of
options
Changes during
the year*
Balance at the
end of the year
Mr G Robertson
131,556,585
Mr T Wilson
Mr A Fraser
–
–
Mr M Schwarz1
9,058,389
Mr J Shedd
Ms K Angel
Total
–
–
140,614,974
–
–
–
–
–
–
–
–
–
–
–
–
–
–
1Mr Marc Schwarz was appointed 31 July 2019
*Changes during the year represent shares acquired or sold by KMP or their associates
G. LOANS TO DIRECTORS AND EXECUTIVES
No loans were made to any Directors or Executives during the financial year.
End of Remuneration Report
–
–
–
–
–
–
–
131,556,585
–
–
9,058,389
–
–
140,614,974
Page 18
Directors’ Report
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.
There were no fees for non-audit services paid to an affiliated entity of the external auditors during the year
ended 30 June 2021.
LEAD AUDITOR’S INDEPENDENCE DECLARATION
The lead auditor’s independence declaration is set out on page 20 and forms part of the Directors’ Report for the
financial year ended 30 June 2021.
ROUNDING OFF
The Group is of a kind referred to in ASIC Legislative Instrument 2016/191 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 2021
Page 19
INTRA ENERGY CORPORATION LIMITED
ABN 65 124 408 751
AND ITS CONTROLLED ENTITIES
AUDITOR’S INDEPENDENCE DECLARATION
UNDER SECTION 307C OF THE CORPORATIONS ACT 2001
TO THE DIRECTORS OF INTRA ENERGY CORPORATION LIMITED
In accordance with section 307C of the Corporations Act 2001, I am pleased to provide
the following declaration of independence to the directors of Intra Energy Corporation
Limited. As the lead audit partner for the audit of the financial report of Intra Energy
Corporation Limited for the year ended 30 June 2021, I declare that, to the best of my
knowledge and belief, there have been no contraventions of:
(i)
the auditor independence requirements as set out in the Corporations Act 2001 in
relation to the audit; and
(ii)
any applicable code of professional conduct in relation to the audit.
HALL CHADWICK (NSW)
Level 40, 2 Park Street
Sydney NSW 2000
GRAHAM WEBB
Partner
Dated: 30 September 2021
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 2021 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 2021.
The declaration is signed in accordance with a resolution of the Board of Directors.
GRAEME ROBERTSON
Chairman
Dated this 30 September 2021
Page 21
INTRA ENERGY CORPORATION LIMITED
ABN 65 124 408 751
AND ITS CONTROLLED ENTITIES
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF
INTRA ENERGY CORPORATION LIMITED
Opinion
We have audited the financial report of Intra Energy Corporation Limited and its controlled
entities (the Group), which comprises the consolidated statement of financial position as
at 30 June 2021, the consolidated statement of profit or loss and other comprehensive
income, the consolidated statement of changes in equity and the consolidated statement
of cash flows for the year then ended, and notes to the consolidated financial statements,
including a summary of significant accounting policies and other explanatory information,
and the directors’ declaration.
In our opinion the accompanying financial report of the Intra Energy Corporation Limited
and its controlled entities is in accordance with the Corporations Act 2001, including:
(a)
(b)
giving a true and fair view of the Group’s financial position as at 30 June 2021 and
of its performance for the year ended on that date; and
complying with Australian Accounting Standards and the Corporations Regulations
2001.
Basis of Opinion
We conducted our audit in accordance with Australian Auditing Standards. Those
standards require that we comply with relevant ethical requirements relating to audit
engagements and plan and perform the audit to obtain reasonable assurance about
whether the financial report is free from material misstatement. Our responsibilities under
those standards are further described in the Auditor’s responsibility section of our report.
We are independent of the Company in accordance with the Corporations Act 2001 and
the ethical requirements of the Accounting Professional and Ethical Standards Board’s
APES 110 Code of Ethics for Professional Accountants (the Code) that are relevant to
our audit of the financial report in Australia. We have also fulfilled our other ethical
responsibilities in accordance with the Code.
We confirm that the independence declaration required by the Corporation Act 2001 has
been given to the directors of the company at the time of this auditor’s report.
We believe that the audit evidence we have obtained is sufficient and appropriate to
provide a basis for our opinion.
Material Uncertainty Related to Going Concern
We draw attention to Note 1(a) in the financial report, which indicates that the Group has
incurred a net loss of $8,210,000 for the year ended 30 June 2021, and as of that date
the Group’s current liabilities exceeded its current assets by $17,984,000. As stated in
Note 1(a), these events or conditions, along with other matters as set forth in Note 1(a),
indicate that a material uncertainty exists that may cast significant doubt on the Group’s
ability to continue as a going concern. Our opinion is not modified in respect of this
matter.
INTRA ENERGY CORPORATION LIMITED
ABN 65 124 408 751
AND ITS CONTROLLED ENTITIES
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF
INTRA ENERGY CORPORATION LIMITED
Key Audit Matters
Key audit matters are those matters that, in our professional judgement, were of most
significance in our audit of the financial report of the year ended 30 June 2021. These
matters were addressed in the context of our audit of the financial report as a whole, and
in forming our opinion thereon, and we do not provide a separate opinion on these
matters.
Key Audit Matter How Our Audit Addressed
the Key Audit Matter
Carrying Value of Non-Current Assets
Refer to Note 11 Property, plant and equipment; Note 12 Mine development costs; Note 13
Exploration expenditure; and Note 1(y) Critical accounting judgments and key sources of
estimation and uncertainty.
65% of the Group’s total assets relate
to property, plant and equipment, mine
development
exploration
costs,
expenditures and right of use assets
totalling $6,379,000 as at 30 June 2021
which are subject to an impairment
assessment in accordance with AASB
136 “Impairment of Assets”.
The group's impairment assessment of
these non-current assets is considered
a key audit matter as the valuation is
judgemental and based on a number of
assumptions
including coal prices,
operating/capital costs, discount rates,
inflation rates and economic conditions
in Tanzania and internationally.
• We
assessed
Our procedures included, amongst others:
management's
determination of the Group's Cash-
Generating Units ("CGUs") to support
the carrying value of property, plant
and equipment.
• We reviewed and analysed the key
assumptions including growth rates,
discount rate, projected coal sales
and gross margin used in the cash
flow forecasts and considered the
reasonableness
these
assumptions.
of
• We
involved Hall Chadwick’s
valuation experts to:
- evaluate
the
-
key
valuation
to
assumptions and estimates
assess the discounted cash flows.
reviewed
mathematical
accuracy of the cash flow model
to
and agreed
supporting information.
relevant data
the
• We assessed the current economic
environment and checked whether
of
any
there were
impairment
indicators
in
to
impair
• We concurred with management’s
assessment
the
carrying value of mine development
costs and exploration expenditure.
• We assessed the adequacy of the
Group’s disclosures in relation to the
carrying value of non-current assets.
full
INTRA ENERGY CORPORATION LIMITED
ABN 65 124 408 751
AND ITS CONTROLLED ENTITIES
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF
INTRA ENERGY CORPORATION LIMITED
Contingent Liabilities
Refer to Note 24 Contingent liabilities.
is a party
The group
to numerous
ongoing litigation and legal matters, of
which the most significant are disclosed
in Note 24 to the financial statements.
to a significant
We focused on this area as a key audit
matter due
level of
judgement and estimation involved in
determining whether liabilities existed in
accordance with AASB 137 “Provisions,
Contingent Liabilities and Contingent
Assets”.
included, amongst
Our procedures
others:
• We
and
discussions
with
held
management
reviewed
correspondence and confirmations
legal advisors
from
regarding
litigation
matters.
the status of
the external
the
• We read the minutes of the Board of
Directors and reviewed the related
legal documents and
latest
correspondence with the claimants.
• We assessed the status of the claims
and if they met the definition of a
liability in accordance with AASB 137
Provisions, Contingent Liabilities and
Contingent Assets.
• We assessed the adequacy of group's
disclosures in relation to contingent
liabilities.
Information Other than the Financial Report and Auditor’s Report Thereon
The directors are responsible for the other information. The other information comprises
the information included in the Group’s annual report for the year ended 30 June 2021 but
does not include the financial report and our auditor’s report thereon. Our opinion on the
financial report does not cover the other information and accordingly we do not express
any form of assurance conclusion thereon. In connection with our audit of the financial
report, our responsibility is to read the other information and, in doing so, consider
whether the other information is materially inconsistent with the financial report or our
knowledge obtained in the audit or otherwise appears to be materially misstated. If, based
on the work we have performed, we conclude that there is a material misstatement of this
other information, we are required to report that fact. We have nothing to report in this
regard.
Responsibilities of the Directors for the Financial Report
The directors of the company are responsible for the preparation of the financial report
that gives a true and fair view in accordance with Australian Accounting Standards and
the Corporations Act 2001 and for such internal control as the directors determine is
necessary to enable the preparation of the financial report that gives a true and fair view
and is free from material misstatement, whether due to fraud or error.
INTRA ENERGY CORPORATION LIMITED
ABN 65 124 408 751
AND ITS CONTROLLED ENTITIES
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF
INTRA ENERGY CORPORATION LIMITED
In preparing the financial report, the directors are responsible for assessing the ability of
the Group to continue as a going concern, disclosing, as applicable, matters related to
going concern and using the going concern basis of accounting unless the directors
either intend to liquidate the Group or to cease operations, or have no realistic alternative
but to do so.
Auditor’s Responsibility for the Audit of the Financial Report
Our objectives are to obtain reasonable assurance about whether the financial report as a
whole is free from material misstatement, whether due to fraud or error, and to issue an
auditor’s report that includes our opinion. Reasonable assurance is a high level of
assurance but is not a guarantee that an audit conducted in accordance with Australian
Auditing Standards will always detect a material misstatement when
it exists.
Misstatements can arise from fraud or error and are considered material if, individually or
in the aggregate, they could reasonably be expected to influence the economic decisions
of users taken on the basis of this financial report.
As part of an audit in accordance with Australian Auditing Standards, we exercise
professional judgement and maintain professional scepticism throughout the audit. We
also:
-
Identify and assess the risks of material misstatement of the financial report, whether
due to fraud or error, design and perform audit procedures responsive to those risks,
and obtain audit evidence that is sufficient and appropriate to provide a basis for our
opinion. The risk of not detecting a material misstatement resulting from fraud is
higher than for one resulting from error, as fraud may involve collusion, forgery,
intentional omissions, misrepresentations, or the override of internal control.
- Obtain an understanding of internal control relevant to the audit in order to design
audit procedures that are appropriate in the circumstances, but not for the purpose of
expressing an opinion on the effectiveness of the Group’s internal control.
- Evaluate the appropriateness of accounting policies used and the reasonableness of
accounting estimates and related disclosures made by the directors.
- Conclude on the appropriateness of the director’s use of the going concern basis of
accounting and, based on the audit evidence obtained, whether a material
uncertainty exists related to events or conditions that may cast significant doubt on
the Group’s ability to continue as a going concern. If we conclude that a material
uncertainty exists, we are required to draw attention in our auditor’s report to the
related disclosures in the financial report or, if such disclosures are inadequate, to
modify our opinion. Our conclusions are based on the audit evidence obtained up to
the date of our auditor’s report. However, future events or conditions may cause the
Group to cease to continue as a going concern.
- Evaluate the overall presentation, structure and content of the financial report,
including the disclosures, and whether the financial report represents the underlying
transactions and events in a manner that achieves fair presentation.
- Obtain sufficient appropriate audit evidence regarding the financial information of the
entities or business activities within the Group to express an opinion on the financial
report. We are responsible for the direction, supervision and performance of the
Group audit. We remain solely responsible for our audit opinion.
INTRA ENERGY CORPORATION LIMITED
ABN 65 124 408 751
AND ITS CONTROLLED ENTITIES
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF
INTRA ENERGY CORPORATION LIMITED
We communicate with the directors regarding, amongst other matters, the planned scope
and timing of the audit and significant audit findings, including any significant deficiencies
in internal control that we identify during our audit.
We also provide the directors with a statement that we have complied with relevant
ethical requirements regarding independence, and to communicate with them all
relationships and other matters that may reasonably be thought to bear on our
independence, and where applicable, related safeguards.
From the matters communicated with the directors, we determine those matters that were
of most significance in the audit of the financial report of the current period and are
therefore key audit matters. We describe these matters in our auditor’s report unless law
or regulation precludes public disclosure about the matter or when, in extremely rare
circumstances, we determine that a matter should not be communicated in our report
because the adverse consequences of doing so would reasonably be expected to
outweigh the public interest benefits of such communication.
Report on the Remuneration Report
We have audited the remuneration report included in the directors’ report for the year
ended 30 June 2021.
In our opinion, the remuneration report of Intra Energy Corporation Limited, for the year
ended 30 June 2021, complies with s 300A of the Corporations Act 2001.
Responsibilities
The directors of the company are responsible for the preparation and presentation of the
remuneration report in accordance with s 300A of the Corporations Act 2001. Our
responsibility is to express an opinion on the remuneration report, based on our audit
conducted in accordance with Australian Auditing Standards.
HALL CHADWICK (NSW)
Level 40, 2 Park Street
Sydney NSW 2000
GRAHAM WEBB
Partner
Dated: 30 September 2021
Consolidated Statement of Profit or Loss and
Other Comprehensive Income
FOR THE YEAR ENDED 30 JUNE 2021
CONSOLIDATED
Sales revenue
Cost of production
Gross Profit
Foreign exchange gain
Compliance and regulatory expenses
Legal and professional expenses
Depreciation and amortisation
Remuneration and employee expenses
Impairment of mine development costs and exploration expenditure
Other expenses
Prior period expenses for taxes and audits
Loss on disposal of assets
Doubtful debts
Finance expenses
Loss Before Income Tax
Income tax benefit
Loss from continuing operations
Loss from discontinued operations
(Reversal of)/Loss from impairment of assets of discontinued
operations
Loss for the Year
Other Comprehensive Income
Foreign currency translation gain/(loss)
Total Comprehensive Loss for the Year
Net Loss for the Year Attributable to:
Shareholders of IEC
Non-controlling interest
Total Comprehensive Loss for the Year Attributable to:
Shareholders of IEC
Non-controlling interest
Loss per share
Loss per share (cents per share, basic and diluted)
Loss per share (cents per share, basic and diluted) on continuing
operations
Profit/(loss) per share (cents per share, basic and diluted) on
discontinued operations
NOTES
2
3
4
10
10
7
7
7
2021
$’000S
13,481
(9,392)
4,089
44
(235)
(161)
(1,520)
(2,189)
(5,329)
(2,681)
-
(31)
(172)
(205)
(8,390)
-
(8,390)
(18)
198
(8,210)
1,028
(7,182)
(5,536)
(2,674)
(8,210)
(5,508)
(1,674)
(7,182)
(1.41)
(1.44)
0.04
2020
$’000S
37,770
(29,308)
8,462
19
(230)
(329)
(1,731)
(2,312)
(687)
(3,378)
(16,361)
-
-
(471)
(17,018)
-
(17,018)
(78)
(90)
(17,186)
126
(17,060)
(11,769)
(5,417)
(17,186)
(11,597)
(5,463)
(17,060)
(3.04)
(3.00)
(0.04)
The Consolidated Statement of Profit or Loss and Other Comprehensive Income should be read in conjunction with the
accompanying notes to the Financial Statements.
Page 27
Consolidated Statement of Financial Position
AS AT 30 JUNE 2021
CONSOLIDATED
2021
$’000S
NOTES
Assets
Current Assets
Cash and cash equivalents
Inventories
Trade and other receivables
Total Current Assets
Non-Current Assets
Property, plant and equipment
Right of use assets
Mine development costs
Exploration expenditure
Investments
Total Non-Current Assets
Total Assets
Liabilities
Current Liabilities
Bank overdraft
Trade and other payables
Employee benefits
Interest bearing liabilities
Lease liabilities
Total Current Liabilities
Non-Current Liabilities
Trade and other payables
Lease liabilities
Provisions
Total Non-Current Liabilities
Total Liabilities
Net Assets/(liabilities)
Equity
Issued capital
Reserves
Accumulated losses
Total equity attributed to equity holders of the Company
Non-controlling interest
Total Equity
8
9
11
11
12
13
14
16(b)
15
16
17
15
17
18
19
20
22
548
1,212
1,498
3,258
6,302
77
-
-
234
6,613
9,871
797
19,035
113
909
388
21,242
10,801
-
956
11,757
32,999
(23,128)
69,654
2,312
(82,218)
(10,252)
(12,876)
(23,128)
2020
$’000S
322
1,731
4,180
6,233
6,888
2,095
5,172
554
226
14,935
21,168
1,287
20,796
130
1,336
1,448
24,997
11,209
85
887
12,181
37,178
(16,010)
69,590
2,284
(76,682)
(4,808)
(11,202)
(16,010)
The Consolidated Statement of Financial Position should be read in conjunction with the accompanying notes to the Financial
Statements.
Page 28
Consolidated Statement of Cash Flows
FOR THE YEAR ENDED 30 JUNE 2021
NOTES
Cash Flows from Operating Activities
Receipts from customers
Payments to suppliers and employees
Interest paid
Net cash provided in operating activities
26
Cash Flows from Investing Activities
Payment for mine development and capitalised exploration costs
Purchase of property, plant and equipment
Proceeds from sale of property, plant and equipment
Payment for investments
Proceeds from deposit for sale of business
Proceeds from issue of shares
Net cash (used) in investing activities
Cash Flows from Financing Activities
Repayment of interest bearing liabilities
Repayment of lease liabilities
Proceeds from borrowings
Net cash (used) in financing activities
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of year
Effects of exchange rate changes on cash
Cash and Cash Equivalents at end of year
Cash and cash equivalents
Bank overdrafts
Cash and Cash equivalents in the Statement of Cash Flows
CONSOLIDATED
2021
$’000S
17,681
(15,677)
(205)
1,799
(23)
(56)
349
-
126
64
460
(988)
(843)
222
2020
$’000S
37,973
(35,719)
(293)
1,961
(47)
(76)
-
(226)
-
-
(349)
(1,125)
(1,205)
-
(1,609)
(2,330)
650
(965)
66
(249)
548
(797)
(249)
(718)
(243)
(4)
(965)
322
(1,287)
(965)
The Consolidated Statement of Cash Flows should be read in conjunction with the accompanying notes to the Financial
Statements.
Page 29
Consolidated Statement of Changes in Equity
FOR THE YEAR ENDED 30 JUNE 2021
Balance at 30 June 2021
69,654
(82,218)
795
2,216
(699)
(10,252)
(12,876)
(23,128)
CONSOLIDATED
At 1 July 2020
TOTAL COMPREHENSIVE INCOME FOR THE YEAR
Loss for the year
Other Comprehensive Income
Foreign currency translation differences
Total Comprehensive Income
ISSUED
CAPITAL
$’000S
69,590
TRANSACTIONS WITH OWNERS RECORDED DIRECTLY INTO EQUITY
Shares issued during the year
Total transactions with owners
64
64
CONSOLIDATED
At 1 July 2019
TOTAL COMPREHENSIVE INCOME FOR THE YEAR
Loss for the year
Other Comprehensive Income
Foreign currency translation differences
Total Comprehensive Income
TRANSACTIONS WITH OWNERS RECORDED DIRECTLY INTO EQUITY
Shares issued during the year
Total transactions with owners
ISSUED
CAPITAL
$’000S
69,590
LOSSES
$’000S
(76,682)
(5,536)
(5,536)
LOSSES
$’000S
(64,913)
(11,769)
(11,769)
ACCUMULATED
PERFORMANCE
OPTION
RESERVE
$’000S
FOREIGN CURRENCY
TRANSLATION
RESERVE
$’000S
TOTAL
$’000S
RIGHTS
$’000S
795
2,216
(727)
(4,808)
NON-CONTROLLING
INTEREST
$’000S
(11,202)
TOTAL EQUITY
$’000S
(16,010)
28
28
(5,536)
(2,674)
(8,210)
28
(5,508)
64
64
1,000
(1,674)
1,028
(7,182)
64
64
ACCUMULATED
PERFORMANCE
OPTION
RESERVE
$’000S
FOREIGN CURRENCY
TRANSLATION
RESERVE
$’000S
TOTAL
$’000S
RIGHTS
$’000S
795
2,216
(899)
6,789
NON-CONTROLLING
INTEREST
$’000S
(5,739)
TOTAL EQUITY
$’000S
1,050
(11,769)
(5,417)
(17,186)
172
172
172
(11,597)
(46)
(5,463)
126
(17,060)
Balance at 30 June 2020
69,590
(76,682)
795
2,216
(727)
(4,808)
(11,202)
(16,010)
The Consolidated Statement of Changes in Equity should be read in conjunction with the accompanying notes to the Financial Statements.
Page 30
Notes to the Financial Statements
FOR THE YEAR ENDED 30 JUNE 2021
1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES
Intra Energy Corporation Limited (“IEC” or “the Company”) is a company limited by shares, incorporated and domiciled
in Australia. The shares of Intra Energy Corporation Limited are publicly traded on the Australian Stock Exchange. The
consolidated financial statements for the year ended 30 June 2021 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 authorised for issue on 30 September 2021.
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 made a loss after tax for the 2021 year of ($8.210m) (2020: loss $17.186m), non-cash depreciation and
amortisation charges of $1.52m (2020: $1.73m), past years royalty and clearance fees from 2011 to 2019 of $Nil
(2020: $16.36m)
As at balance date, the Group's current liabilities exceeded its current assets by $17.984m (2020: $18.764m). The
deficit in net current assets included ($0.797m) (2020: $1.287m) overdraft payable to KCB, $0.751m (2020:
$1.155m) payable to KCB Bank under loan facilities, equipment finance of $nil (2020: $1.022) and $2.722m for the
current portion of the past royalty and clearance fees on customers’ transport costs from 2011 to 2019 (2020:
$2.723m) which were included in current liabilities.
In assessing the appropriateness of using the going concern assumption, the Directors have noted:
Intra Energy Tanzania Limited (IETL) a company registered in Tanzania is the investor in the Tancoal joint venture,
IEC has not given a corporate guarantee to IETL or Tancoal.
KCB has continued to show support for Tancoal.
Sales were lower in FY 2021 due to competition from small miners and the impact of Covid-19 but business
conditions are expected to improve during FY 2022. Tancoal remains the dominant coal miner and supplier to
industrial energy users in the Eastern African region and continues to implement productivity improvements.
Continued to implement a number of cost saving initiatives and enter into repayment arrangements with creditors
to preserve working capital. Discussions continue with the Ministry of Minerals for a moratorium on the
assessment for past charges for royalty on transport to customers' business premises and discussions are also
continuing with the former contractor, Caspian, to extend the payment plan for the three final payments due to
tight cash flow from lower sales.
Recognised that the interest-bearing liabilities relating to the loans from KCB are secured against the Group’s
mining equipment.
Noted JORC compliant resources of 357 million tonnes at the Tancoal mine in Tanzania.
Recognised that there is interest from parties in Tanzania to purchase the local business with its liabilities and that
negotiation to achieve this are proceeding positively.
Retained their confidence in the strategic value of the Group as it continues with its coal project in Tanzania and
its focus on the development of the gold resources in Mozambique and gold, copper and nickel exploration
projects in Australia.
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 KCB Bank of Tanzania demands repayment of their combined $1.548m debt facility ($2.7442m at 30 June 2020) or
a contingent liability becomes immediately payable then the Group will be required to raise capital or divest assets to
continue as a going concern.
Page 31
Notes to the Financial Statements
FOR THE YEAR ENDED 30 JUNE 2021
1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONT.)
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 (“IEC” or “the Company”) and controlled entities (“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.
There are no 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 have not been presented within this financial report.
Financial information for IEC Parent as an individual entity is included in Note 31 as permitted by the Corporations Act
2001.
C. Principles of consolidation
The consolidated financial statements incorporate all assets, liabilities and results of the parent (Intra Energy
Corporation Limited) and all of the subsidiaries.
c.i Business combinations
Business combinations occur where an acquirer obtains control over one or more businesses.
The purchase method of accounting is used to account for all business combinations, unless it is a combination involving
entities or businesses under common control.
Cost is measured as the fair value of the assets given, equity instruments issued or liabilities incurred or assumed at the
date of exchange. All transaction costs incurred in relation to business combinations, other than those associated with
the issue of a financial instrument, are recognised as expenses in profit or loss when incurred. 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 Profit or Loss and Other
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 parent controls an entity when it is exposed to, or has rights to, variable returns from its involvement with the
entity and has the ability to affect those returns through its power over the entity. A list of the subsidiaries is provided
in Note 21.
Intercompany transactions, balances and unrealised gains or losses on transactions between group entities are fully
eliminated on consolidation.
Page 32
Notes to the Financial Statements
FOR THE YEAR ENDED 30 JUNE 2021
1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONT’D)
The accounting policies of subsidiaries have been changed when necessary to align them with the policies adopted by
the Group.
Intercompany transactions, balances and unrealised gains or losses on transactions between group entities are fully
eliminated on consolidation.
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
Equity interests in a subsidiary not attributable, directly or indirectly, to the Group are presented as “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.
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.
Page 33
Notes to the Financial Statements
FOR THE YEAR ENDED 30 JUNE 2021
1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONT’D)
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
5 to 15 years
4 to 10 years
4 to 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 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.
Page 34
Notes to the Financial Statements
FOR THE YEAR ENDED 30 JUNE 2021
1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONT’D)
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 Group 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.
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.
Page 35
Notes to the Financial Statements
FOR THE YEAR ENDED 30 JUNE 2021
1.
L.
STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONT’D)
Financial Instruments
l.i Recognition
Financial assets and financial liabilities are recognised when the Group becomes a party to the contractual provisions
to the instrument. For financial assets, this is the date that the Group commits itself to either the purchase or sale of
the asset.
Financial instruments (except for trade receivables) are initially measured at fair value plus transaction costs, except
where the instrument is classified "at fair value through profit or loss", in which case transaction costs are expensed to
profit or loss immediately.
Trade receivables are initially measured at the transaction price if the trade receivables do not contain a significant
financing component or if the practical expedient was applied as specified in AASB 15.63.
l.ii Financial liabilities
All financial liabilities are subsequently measured at amortised cost using the effective interest method.
The effective interest method is a method of calculating the amortised cost of a debt instrument and of allocating
interest expense in profit or loss over the relevant period. The effective interest rate is the internal rate of return of the
financial asset or liability. That is, it is the rate that exactly discounts the estimated future cash flows through the
expected life of the instrument to the net carrying amount at initial recognition.
A financial liability cannot be reclassified.
l.iii Financial assets
Financial assets are subsequently measured at:
amortised cost;
fair value through other comprehensive income; or
fair value through profit or loss.
Measurement is on the basis of two primary criteria:
the contractual cash flow characteristics of the financial asset; and
the business model for managing the financial assets.
A financial asset that meets the following conditions is subsequently measured at amortised cost:
the financial asset is managed solely to collect contractual cash flows; and
the contractual terms within the financial asset give rise to cash flows that are solely payments of principal and
interest on the principal amount outstanding on specified dates.
A financial asset that meets the following conditions is subsequently measured at fair value through other
comprehensive income:
the contractual terms within the financial asset give rise to cash flows that are solely payments of principal and
interest on the principal amount outstanding on specified dates;
the business model for managing the financial assets comprises both contractual cash flows collection and the
selling of the financial asset.
By default, all other financial assets that do not meet the measurement conditions of amortised cost and fair value
through other comprehensive income are subsequently measured at fair value through profit or loss.
The initial designation of the financial instruments to measure at fair value through profit or loss is a one-time option
on initial classification and is irrevocable until the financial asset is derecognised.
l.iv Derecognition
Derecognition refers to the removal of a previously recognised financial asset or financial liability from the statement
of financial position.
A liability is derecognised when it is extinguished (ie when the obligation in the contract is discharged, cancelled or
expires). An exchange of an existing financial liability for a new one with substantially modified terms, or a substantial
modification to the terms of a financial liability is treated as an extinguishment of the existing liability and recognition
of a new financial liability.
Page 36
Notes to the Financial Statements
FOR THE YEAR ENDED 30 JUNE 2021
1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONT’D)
The difference between the carrying amount of the financial liability derecognised and the consideration paid and
payable, including any non-cash assets transferred or liabilities assumed, is recognised in profit or loss.
A financial asset is derecognised when the holder's contractual rights to its cash flows expires, or the asset is transferred
in such a way that all the risks and rewards of ownership are substantially transferred.
All of the following criteria need to be satisfied for derecognition of financial asset:
the right to receive cash flows from the asset has expired or been transferred;
all risk and rewards of ownership of the asset have been substantially transferred; and
the Group no longer controls the asset.
On derecognition of a financial asset measured at amortised cost, the difference between the asset's carrying amount
and the sum of the consideration received and receivable is recognised in profit or loss.
l.v Impairment
The Group recognises a loss allowance for expected credit losses on financial assets that are measured at amortised
cost or fair value through other comprehensive income.
Loss allowance is not recognised for:
financial assets measured at fair value through profit or loss; or
equity instruments measured at fair value through other comprehensive income.
Expected credit losses are the probability-weighted estimate of credit losses over the expected life of a financial
instrument. A credit loss is the difference between all contractual cash flows that are due, and all cash flows expected
to be received, all discounted at the original effective interest rate of the financial instrument.
The Group uses the following approaches to impairment, as applicable under AASB 9: Financial Instruments:
the general approach
the simplified approach
General approach
Under the general approach, at each reporting period, the Group assesses whether the financial instruments are credit-
impaired, and if:
the credit risk of the financial instrument has increased significantly since initial recognition, the Group measures
the loss allowance of the financial instruments at an amount equal to the lifetime expected credit losses; or
there is no significant increase in credit risk since initial recognition, the Group measures the loss allowance for that
financial instrument at an amount equal to 12-month expected credit losses.
Simplified approach
The simplified approach does not require tracking of changes in credit risk at every reporting period, but instead
requires the recognition of lifetime expected credit loss at all times. This approach is applicable to trade receivables
which do not contain a significant financing component.
In measuring the expected credit loss, a provision matrix for trade receivables was used taking into consideration
various data to get to an expected credit loss (ie diversity of customer base, appropriate groupings of historical loss
experience, etc).
Recognition of expected credit losses in financial statements
At each reporting date, the Group recognises the movement in the loss allowance as an impairment gain or loss in the
statement of profit or loss and other comprehensive income.
The carrying amount of financial assets measured at amortised cost includes the loss allowance relating to that asset.
For financial assets that are unrecognised (eg loan commitments yet to be drawn, financial guarantees), a provision for
loss allowance is created in the statement of financial position to recognise the loss allowance.
M. Foreign Currency Transactions and Balances
m.i. Functional and Presentation Currency
The functional currency of each of the Group’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.
Page 37
Notes to the Financial Statements
FOR THE YEAR ENDED 30 JUNE 2021
1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONT’D)
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
Profit or Loss and Other Comprehensive Income, except where deferred in Other Comprehensive Income as a qualifying
cash flow or net investment hedge. Exchange differences arising on the translation of non-monetary items are
recognised directly in Other Comprehensive Income to the extent that the gain or loss is directly recognised in other
comprehensive income; otherwise the exchange difference is recognised in the Consolidated Statement of Profit or
Loss and Other 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 Profit or Loss and Other Comprehensive Income in the year in which the operation is disposed.
N. Employee Benefits
Provision is made for the Group’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 Short-term employee benefits
Provision is made for the Group’s obligation for short-term employee benefits. Short-term employee benefits are
benefits (other than termination benefits) that are expected to be settled wholly before 12 months after the end of the
annual reporting period in which the employees render the related service, including wages, salaries and sick leave.
Short-term employee benefits are measured at the (undiscounted) amounts expected to be paid when the obligation
is settled.
The Group’s obligations for short-term employee benefits such as wages, salaries and sick leave are recognised as part
of current trade and other payables in the statement of financial position. The Group’s obligations for employees’
annual leave and long service leave entitlements are recognised as provisions in the statement of financial position.
n.ii Share-based payments
The Group 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 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
Page 38
Notes to the Financial Statements
FOR THE YEAR ENDED 30 JUNE 2021
1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONT’D)
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 Group 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.
Provisions are measured using the best estimate of the amounts required to settle the obligation at the end of the
reporting date.
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
The Group produces and sells a range of thermal coal products. Revenue from the sale of coal is recognised when
control of the product has transferred to the customer. Control of the product is considered transferred to the customer
at the time of delivery, usually on Free on Board ("FOB") basis or a Cost and Freight ("CFR") basis. For CFR contracts the
performance obligation relating to freight services is accounted for as a separate performance obligation.
A receivable is recognised when control of the products is delivered as this is the point in time that the consideration is
unconditional and when control of the product is transferred to the customer. From time to time, the Group receives
prepayment before control of the product has transferred to the customer. Such prepayments are recognised as
contract liabilities.
Some of the Group's coal sales contracts are long-term supply agreement which stipulate the nominal annual quantity
and price negotiation mechanism. For those contracts, the actual quantity and transaction price applicable for future
shipments are only negotiated or determined prior to the beginning of, or a date which is after, each contract year or
delivery period. The transaction price for a future shipment is based on, or derived from, a market price prevailing at
the time of the future shipment. As the future market price for coal is highly susceptible to factors outside the Group's
influence, the transaction price for a shipment is not readily determinable until or nearing the time of the shipment. As
a result, the Group has concluded that a contract with the customer does not exist for those shipments for which the
actual delivery quantity and transaction price have not yet been negotiated or determined.
R.
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.
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 Statement of Cash Flows a gross basis, except for the GST or VAT
component of investing and financing activities, which are disclosed as operating cash flows.
Trade and other payables
T.
These amounts represent liabilities for goods and services provided to the Group prior to the end of financial year which
are unpaid. The amounts are unsecured and are usually paid within 30 days of recognition.
Leases
U.
At inception of a contract, the Group assesses if the contract contains or is a lease. If there is a lease present, a right-of-
use asset and a corresponding lease liability is recognised by the Group where the Group is a lessee. However, all
Page 39
Notes to the Financial Statements
FOR THE YEAR ENDED 30 JUNE 2021
STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONT’D)
1.
contracts that are classified as short-term leases (ie a lease with a remaining lease term of 12 months or less) and leases
of low-value assets are recognised as an operating expense on a straight-line basis over the term of the lease.
Initially, the lease liability is measured at the present value of the lease payments still to be paid at commencement
date. The lease payments are discounted at the interest rate implicit in the lease. If this rate cannot be readily
determined, the Group uses the incremental borrowing rate.
Lease payments included in the measurement of the lease liability are as follows:
fixed lease payments less any lease incentives;
variable lease payments that depend on an index or rate, initially measured using the index or rate at the
commencement date;
the amount expected to be payable by the lessee under residual value guarantees;
the exercise price of purchase options, if the lessee is reasonably certain to exercise the options;
lease payments under extension options, if lessee is reasonably certain to exercise the options; and
payments of penalties for terminating the lease, if the lease term reflects the exercise of an option to terminate
the lease.
The right-of-use assets comprise the initial measurement of the corresponding lease liability as mentioned above, any
lease payments made at or before the commencement date, as well as any initial direct costs.
The subsequent measurement of the right-of-use assets is at cost less accumulated depreciation and
impairment losses.
Right-of-use assets are depreciated over the lease term or useful life of the underlying asset, whichever is the shortest.
Where a lease transfers ownership of the underlying asset, or the cost of the right-of-use asset reflects that the Group
anticipates exercising a purchase option, the specific asset is depreciated over the useful life of the underlying asset.
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 and disposal groups are classified as held for sale and measured at the lower of carrying amount
and fair value less costs to sell, where the carrying amount will be recovered principally through sale as opposed to
continued use. No depreciation or amortisation is charged against assets classified as held for sale.
Classification as “held for sale” occurs when: management has committed to a plan for immediate sale; the sale is
expected to occur within one year from the date of classification; and active marketing of the asset has commenced.
Such assets are classified as current assets.
A discontinued operation is a component of an entity, being a cash-generating unit (or a group of cash generating units),
that either has been disposed of, or is classified as held for sale, and: represents a separate major line of business or
geographical area of operations; is part of a single coordinated plan to dispose of a separate major line of business or
geographical area of operations; or is a subsidiary acquired exclusively with the view to resale.
Impairment losses are recognised for any initial or subsequent write-down of an asset (or disposal group) classified as
held for sale to fair value less costs to sell. Any reversal of impairment recognised on classification as held for sale or
prior to such classification is recognised as a gain in Consolidated Profit or Loss and Other Comprehensive Income in
the period in which it occurs.
X.
Impairment of non-financial 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
Page 40
Notes to the Financial Statements
FOR THE YEAR ENDED 30 JUNE 2021
STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONT’D)
1.
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 Profit or Loss and Other 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.
Y. Critical accounting judgments and key sources of estimation uncertainty
In the application of the Group’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.
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
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.
Impairment of non-financial assets
The Group assesses impairment at the end of each reporting period by evaluating conditions and events
specific to the Group that may be indicative of impairment triggers. Recoverable amounts of relevant assets
are reassessed using value-in-use calculations which incorporate various key assumptions. In light of lengthy
negotiations with the Malawi government and ongoing logistical issues with the operation of the mine, the
Group recognised a full impairment on the carrying value of its Malawian subsidiaries.
Z.
Comparative figures
When required by Accounting Standards, comparative figures have been adjusted to conform to changes in
presentation for the current financial year.
2. REVENUES
From continuing operations
Coal sales
Page 41
CONSOLIDATED
2021
$’000S
2020
$’000S
13,481
37,770
Notes to the Financial Statements
FOR THE YEAR ENDED 30 JUNE 2021
3. DEPRECIATION AND AMORTISATION
Loss before income tax includes the following specific expenses:
Depreciation and amortisation
Depreciation
Plant and equipment
Right of use assets
Total depreciation
Amortisation
Total
CONSOLIDATED
2021
$’000S
2020
$’000S
1,418
78
1,496
24
1,520
1,172
502
1,674
57
1,731
Page 42
Notes to the Financial Statements
FOR THE YEAR ENDED 30 JUNE 2021
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 profit/(loss) from ordinary activities at 26%
Non-deductible expenditure
Tax effect of temporary differences not recognised
Tax effect of current year tax profits/(losses) for which no deferred tax
asset has been recognised
Income tax (benefit)/ expense
(b) Unrecognised temporary differences
Deferred Tax Assets (at 30%)
Temporary differences
Carry forward revenue tax losses
Carry forward capital tax losses
Carry forward foreign tax losses
Total
CONSOLIDATED
2021
$’000S
2020
$’000S
(8,210)
(2,135)
4
(56)
2,187
-
5,054
4,811
7
18,230
28,102
(17,186)
(5,156)
24
(542)
5,674
-
4,031
5,806
8
17,151
26,996
The deferred tax assets relating to carry forward losses and temporary differences have not been brought to account
as it is unlikely they will arise until such a point that the Company generates sufficient profit to utilise them.
5. KEY MANAGEMENT PERSONNEL COMPENSATION
The following persons were Key Management Personnel of the Company during the financial year:
Non-Executive Directors
Mr G Robertson (Chairman)
Executive Directors
Mr B Dunn1 (Managing Director)
Senior Management
Ms K Angel3 (Chief Financial Officer)
Mr T Wilson
Mr A Fraser
Mr J Shedd (CEO)
Mr D Marc Schwarz2
1Mr B Dunn appointed 23 April 2021
2Mr Marc Schwarz resigned 9 February 2021
1Ms K Angel resigned 16 May 2021
Page 43
Notes to the Financial Statements
FOR THE YEAR ENDED 30 JUNE 2021
5.
KEY MANAGEMENT PERSONNEL COMPENSATION (CONT’D)
KEY MANAGEMENT PERSONNEL COMPENSATION
Short-term employee benefits
Superannuation
Post-employment benefits
Performance rights
Total Compensation
2021
$
937,778
-
-
-
2020
$
1,023,073
-
-
-
937,778
1,023,073
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 B of the Remuneration Report.
EQUITY INSTRUMENT DISCLOSURES RELATING TO KEY MANAGEMENT PERSONNEL
Options provided as remuneration and shares issued on exercise of such options
Details of options and performance rights 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.
6. AUDITOR’S REMUNERATION
Audit services
Auditors of the Group
Audit and review of financial reports – Hall Chadwick
Non-Audit services
Tax advisory services
Other advisory services
CONSOLIDATED
2021
$’000S
2020
$’000S
195
195
-
-
-
195
195
-
-
-
Page 44
Notes to the Financial Statements
FOR THE YEAR ENDED 30 JUNE 2021
7. EARNINGS PER SHARE
2021
2020
Basic and diluted loss per share
Loss from continuing operations attributable to the ordinary equity holders of
the Company
(5,374,000)
($11,615,000)
Profit/(loss) from discontinued operations attributable to the ordinary equity
holders of the Company
162,000
(154,000)
Loss attributable to the ordinary equity holders of the Company
(5,536,000)
($11,769,000)
Weighted average number of ordinary shares outstanding during the year used
in calculating basic EPS
395,861,016
387,724,030
Loss per share (cents) – basic and diluted from continuing operations
Profit/(loss) per share (cents) – basic and diluted from discontinued
operations
Loss per share (cents) – basic and diluted
(1.44)
0.04
(1.40)
8.
INVENTORIES
Consumables, fuel and other equipment
Coal stock
Total
Less: Provision for impairment
Net carrying amount
CONSOLIDATED
2021
$’000S
302
910
1,212
-
1,212
(3.00)
(0.04)
(3.04)
2020
$’000S
624
1,108
1,732
(1)
1,731
Page 45
Notes to the Financial Statements
FOR THE YEAR ENDED 30 JUNE 2021
9. TRADE AND OTHER RECEIVABLES
Current
Trade receivables
Other receivables
Related party receivables
Prepayments
Total
Less: Provision for impairment
Net carrying amount
Non-current
Other receivables
Less: Provision for impairment
10. DISCONTINUED OPERATIONS
CONSOLIDATED
2021
$’000S
2,223
338
127
442
3,130
(1,632)
1,498
199
(199)
-
2020
$’000S
4,321
486
138
735
5,680
(1,500)
4,180
218
(218)
-
The Malawi Group is presented as discontinued operations, the carrying value of the assets were fully impaired as at 30
June 2016 and the mining license has been relinquished. The Malawi Group will subsequently be wound up.
The Malawian subsidiaries earned no revenue and recorded a loss after tax of $18,000 for the year ended 30 June 2021
(2020: loss of $78,000), and a reversal of provision of impairment of $198,000 (2020: impairment of $90,000) due to
foreign currency fluctuation on translation.
Page 46
Notes to the Financial Statements
FOR THE YEAR ENDED 30 JUNE 2021
11. PROPERTY, PLANT AND EQUIPMENT
30 June 2021
Year ended 30 June 2021
At 1 July 2020, net of accumulated
depreciation
Additions
Disposals
Transfers
Depreciation charge
Effect of exchange rates (net)
At 30 June 2021, net of accumulated
depreciation
At 30 June 2021
At cost
Accumulated depreciation and impairment
Net carrying value
Office
Equipment
$’000
Mining Plant
and Equipment
$’000
Motor
Vehicles
$’000
Leasehold
$’000
Capital Work
in Progress
$’000
Software
$’000
Right of Use
Assets
$’000
330
-
(10)
(85)
(92)
(14)
129
1,060
(931)
129
5,755
-
(327)
2,002
(1,160)
(681)
5,589
11,193
(5,604)
5,589
255
-
-
52
(121)
(75)
111
1,138
(1,027)
111
449
-
-
-
(44)
(39)
366
711
(345)
366
87
56
-
(36)
-
-
107
107
-
107
12
-
(12)
-
-
-
-
473
(473)
-
2,095
-
-
(1,933)
(78)
(7)
77
231
(154)
77
Total
$’000
8,983
56
(349)
-
(1,495)
(816)
6,379
14,913
(8,534)
6,379
$6.3m of Property, Plant and Equipment is held as collateral by KCB Bank of Tanzania in relation to loan facilities.
Page 47
Notes to the Financial Statements
FOR THE YEAR ENDED 30 JUNE 2021
11. PROPERTY, PLANT AND EQUIPMENT (CONT’D)
30 June 2020
Year ended 30 June 2020*
At 1 July 2019, net of accumulated
depreciation
Additions
Transfers
Depreciation charge
Effect of exchange rates (net)
At 30 June 2020, net of accumulated
depreciation
At 30 June 2020
At cost
Accumulated depreciation and impairment
Net carrying value
Office
Equipment
$’000
Mining Plant
and Equipment
$’000
Motor
Vehicles
$’000
Leasehold
$’000
Capital Work
in Progress
$’000
Software
$’000
Right of Use
Assets
$’000
368
9
20
(110)
43
330
1,240
(910)
330
6,372
67
-
(999)
315
5,755
11,315
(5,560)
5,755
418
-
-
(174)
11
255
1,241
(986)
255
437
-
72
(78)
18
449
778
(329)
449
666
-
(579)
-
-
87
87
-
87
10
-
-
-
2
12
488
(476)
12
244
1,902
487
(313)
(225)
2,095
2,495
(400)
2,095
Total
$’000
8,515
1,978
-
(1,674)
164
8,983
17,644
(8,661)
8,983
$6.88m of Property, Plant and Equipment is held as collateral by KCB Bank of Tanzania in relation to loan facilities.
Page 48
Notes to the Financial Statements
FOR THE YEAR ENDED 30 JUNE 2021
12. MINE DEVELOPMENT COSTS
Tancoal Mine
Opening balance
Mine development expenditure
Rehabilitation asset
Amortisation
Effect of exchange rates
Impairment
Net carrying value
CONSOLIDATED
2021
$’000s
5,172
23
110
(24)
(465)
(4,816)
-
2020
$’000s
5,079
-
135
(57)
15
-
5,172
The mine development costs were fully impaired due to the ongoing discussions with the Ministry of Minerals not yet
resolved on the A$10.2m (A$13.5m) for the royalty on transport fees payable from prior years accounted for in FY 2020,
the cancellation by the Ministry of Minerals of two mining licence applications because of non-payment of the royalty
on transport fees, lower sales from poor economic conditions and increased competition from small miners and the
impact on profitability from the introduction of royalty and clearance fees on the cost of transport paid by customers
to the location of their operations.
13. EXPLORATION EXPENDITURE
Tancoal Energy Limited tenements
Opening balance
Exploration expenditure
Impairment
Effect of exchange rates
Impairment
Net carrying value
CONSOLIDATED
2021
$’000s
2019
$’000s
554
-
-
(41)
(513)
-
722
47
(230)
15
-
554
The exploration expenditure was fully impaired at 30 June 2021 as it was not considered that the exploration assets
would be recoverable by the successful development and commercial exploitation or sale of the respective mining
permits.
Page 49
Notes to the Financial Statements
FOR THE YEAR ENDED 30 JUNE 2021
14. INVESTMENTS
Investment in unlisted shares
Opening balance
Investment expenditure
Effect of exchange rates
Total
CONSOLIDATED
2021
$’000s
2020
$’000s
226
-
8
234
-
226
-
226
Investment by Intrafrican Resources Limited, a fully owned subsidiary registered in Mauritius in Intra Minerals Limited,
a company registered in Mauritius, which is the 95% owner of the Minas Do Lurio Gold Project in Mozambique.
Intrafrican Resources Limited owns 15% of the Project.
15. TRADE AND OTHER PAYABLES
Current
Trade payables
Related party payables
Accruals and other payables
Total
Non-current
Trade and other payables
CONSOLIDATED
2021
$’000s
7,681
1,726
9,628
19,035
2020
$’000s
10,034
1,255
9,507
20,796
10,801
11,209
Total
11,209
Amount owing by Tancoal energy Limited to Ministry of Mineral Tanzania for royalty and clearance fees on cost of
transport to customers premises for past years 2011 to 2014. Amount to be paid over four years A$15.84m (US$10.4m).
The amount owed at 30 June 2021 was U$10.2m (A$13.5m) of which A$2.7m is classified as a current liability.
10,801
16. INTEREST BEARING LIABILITIES
Current
Secured loan facilities
Total
CONSOLIDATED
2021
$’000s
909
909
2020
$’000s
1,336
1,336
16(a) Secured loan facility
In July 2017 KCB approved a facility of US$936,000 to be repaid over five years at a rate of 8% per annum for the
purchase of a new crushing and screening plant, the balance payable at 30 June 2021 was US$257,000 (2020:
US$442,000).
In July 2018, US$0.9m of the overdraft facility with KCB was converted to a term loan to be repaid over three years at
Page 50
Notes to the Financial Statements
FOR THE YEAR ENDED 30 JUNE 2021
INTEREST BEARING LIABILITIES (CONT’D)
16.
rate of 8% per annum, the balance payable at 30 June 2021 was US$56,000 (2020 US$351,000).
In March 2021, US$0.3m of the overdraft facility with KCB was converted to a term loan to be repaid over two years at
9% per annum, the balance payable at 40 June 2021 was US$0.253.
16(b) Bank overdraft facility
The bank overdraft facility was US$0.6m, the balance payable at 30 June 2021 was A$797,000. Interest is charged on
the facility at a rate of 8% per annum. The overdraft is not subject to any covenant requirements and is repayable on
demand.
16(c) Insurance Premium facility
During the year Commercial Bank of Africa Limited (CBA) provided an insurance premium facility, the balance payable
at 30 June 2021 was A$158,000 (2020: A$181,000).
17. LEASE LIABILITIES
Current
Lease liabilities
Hire purchase
Total
Non-current
Lease liabilities
Total
CONSOLIDATED
2021
$’000s
2020
$’000s
77
311
388
-
-
1,107
341
1,448
85
85
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. The full amount under the contract of
A$311,000 (2020: A$341,000) was outstanding at 30 June 2021.
The lease liability refers to lease of office premises.
18. PROVISIONS
Non-current
Rehabilitation provision
Total
Page 51
CONSOLIDATED
2021
$’000s
956
956
2020
$’000s
887
887
Notes to the Financial Statements
FOR THE YEAR ENDED 30 JUNE 2021
18. PROVISIONS (cont’d)
The movement in provisions during the year are as follows:
2021
$000’s
Opening balance
Additions
Effect of exchange rates
Closing balance
Represented by
Current
Non-current
Closing balance
2020
$000’s
Opening balance
Additions
Effect of exchange rates
Closing balance
Represented by
Current
Non-current
Closing balance
Rehabilitation
Total
887
110
(41)
956
-
956
956
887
110
(41)
956
-
956
956
Rehabilitation
Total
803
135
(51)
887
-
887
887
803
135
(51)
887
-
887
887
Rehabilitation
The mining, extraction and processing activities of the Group 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.
19. ISSUED CAPITAL
2021
Issue price
No. $ per share
2021
$’000s
2020
Issue price
No.
$ per share
Balance at the
beginning of the year:
387,724,030
69,590
387,724,030
Shares issued
10,000,000
$0.0064
-
-
64
-
-
-
-
-
2020
$’000s
69,590
-
-
Share issue costs
Balance at the end of
the year
397,724,030
69,654
387,724,030
69,590
Fully paid ordinary shares carry one vote per share and carry the rights to dividends
Page 52
Notes to the Financial Statements
FOR THE YEAR ENDED 30 JUNE 2021
20. RESERVES
20(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
1. Options reserve recognises the fair value of options issued
2. No options were granted during the year ended 30 June 2021
20(b) Performance Rights reserve
Total Performance Rights reserve
2021
No.
2021
$’000s
2,216
2,216
2020
No.
2020
$’000s
2,216
2,216
CONSOLIDATED
2021
$’000s
795
2020
$’000s
795
1.
The performance rights reserve recognises the fair value of performance rights issued as compensation to
employees
2. No performance rights were granted during the year ended 30 June 2021
20(c) Foreign currency translation reserve
Non-current
Balance at the beginning of the year
Foreign currency translation differences
Balance at the end of the year
CONSOLIDATED
2021
$’000s
(727)
28
(699)
2020
$’000s
(899)
172
(727)
Foreign currency translation reserve recognises exchange differences arising on translation of the foreign controlled
entities. The cumulative amount is reclassified to profit or loss when the net investment is disposed of.
Page 53
Notes to the Financial Statements
FOR THE YEAR ENDED 30 JUNE 2021
21. SUBSIDIARIES AND JOINTLY CONTROLLED ENTITIES
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 (%)*
2021
Equity (%)*
2020
Intra Energy (Tanzania) Limited
Tanzania
Ordinary
Tancoal Energy Limited
Tanzania
Ordinary
Intrafrican Resources Limited
Mauritius
Ordinary
Tanzacoal East Africa Mining Limited
Tanzania
Ordinary
AAA Drilling Limited
AAA Drilling Limited
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
Pamodzi Power Limited
Malawi
Ordinary
100%
70%
100%
85%
100%
100%
100%
100%
100%
90%
100%
100%
100%
70%
100%
85%
100%
100%
100%
100%
100%
90%
100%
100%
* Percentage of voting power is in proportion to ownership
** Entity is dormant and in the process of winding up.
22. NON-CONTROLLING INTEREST
Total non-controlling interest
CONSOLIDATED
2021
$’000s
2020
$’000s
(12,876)
(11,202)
The Company’s subsidiary Intra Energy (Tanzania) Limited (“IETL”) owns 70% of Tancoal and 30% is owned by Tancoal’s
joint venture 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.
Page 54
Notes to the Financial Statements
FOR THE YEAR ENDED 30 JUNE 2021
23. COMMITMENTS
23(a) Operating Commitments
Operating expenditure contracted for at the reporting date but not recognised as liabilities is as follows:
Tenement Leases Expenditure Payable
Less than 1 year
Between 2 and 5 years
Greater than 5 years
Total
23(b) Capital and Leasing Commitments
2021
$’000s
136
133
-
269
Hire purchase liabilities committed to at the reporting date, recorded as liabilities, are as follows:
Hire purchase commitments
Payables – minimum hire purchase payments
Not later than 12 months
Between 12 months and 5 years
Minimum lease payments
Less: future finance charges
Present value of minimum lease payments
2021
$’000s
311
-
311
-
311
2020
$’000s
302
895
-
1,197
2020
$’000s
341
-
341
-
341
Hire Purchase
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. The full amount under the contract of $311,000 (2020:
$341,000) was outstanding at 30 June 2021.
24. CONTINGENT LIABILITIES AND CONTINGENT ASSETS
The supplier of the hire purchase contract in Malawi has brought a legal claim for penalties as part of the cancellation
of the arrangement against the subsidiary company Malcoal Mining Limited. The company is defending the claim but
the potential liability may be up to $500,000 in addition to costs accounted for in the accounts. The claim was still
pending at 30 June 2021.
Tancoal Energy Limited in Tanzania won a legal claim brought by NBC bank for recovery of money paid under a letter of
credit arrangement in 2013 for a potential liability up to US$470,000 and also won a claim against NBC for the return of
US$230,000 it withdrew without authority from Tancoal’s bank account. NBC has lodged an appeal, the appeal was still
pending at 30 June 2021.
A supplier, VIVO, has brought a legal claim against Tancoal Energy Limited for late payment of their account in Tanzania,
the case includes TZS 200 million (A$115k) for damages for breach of contract, interest and costs of the case , the case
was still pending at 30 June 2021.
Other than the above, the Directors are not aware of any other contingent liabilities or contingent assets at 30 June
2021.
Page 55
Notes to the Financial Statements
FOR THE YEAR ENDED 30 JUNE 2021
25. SEGMENT REPORTING
The Group operates in two geographical segments being Australia and Africa.
Segment information
The Group 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
Group’s business is the exploration, evaluation, marketing, production and sale of coal in Africa.
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.
Accounting policies
Segment information is prepared in conformity with the accounting policies of the entity as per Accounting Standard
AASB 8 Operating Segments.
Page 56
Notes to the Financial Statements
FOR THE YEAR ENDED 30 JUNE 2020
25. SEGMENT REPORTING (CONT’D)
Australia Period
Ended
30 June 21
$’000
Australia Period
Ended
30 June 20
$’000
Africa
Period Ended
30 June 21
$’000
Africa
Period Ended
30 June 20
$’000
Eliminations
Period Ended
30 June 21
$’000
Eliminations
Period Ended
30 June 20
$’000
Consolidated
Period Ended
30 June 21
$’000
Consolidated
Period Ended
30 June 20
$’000
Geographical Segment
Revenue
Sales revenue
Inter-segment revenue
Total revenue
Net costs of production
Gross Profit
Other income
–
2,100
2,100
–
2,100
–
3,093
3,093
–
3,093
13,481
–
13,481
(9,392)
4,089
37,770
–
37,770
(29,308)
8,462
–
(2,100)
(2,100)
–
(2,100)
–
–
–
(3,093)
(3,093)
–
(3,093)
–
–
Other operating expenses
(1,536)
(1,725)
(3,889)
(20,866)
Loss before impairment, depreciation,
amortisation, net finance costs and tax
Impairment
Depreciation
Amortisation
Results from operating activities
Finance income
Finance expenses
Loss before tax
Income tax benefit/(expense)
Net Loss from continuing operations
Loss from discontinued operations and
impairments on those operations
Profit/(loss) for the year
Total Assets
Total Liabilities
Page 57
564
–
–
–
564
1,368
–
–
–
1,368
200
(5,329)
(1,496)
(24)
(6,649)
(12,404)
(687)
(1,674)
(57)
(14,822)
(2,100)
(3,093)
–
–
–
–
–
–
(2,100)
(3,093)
4,523
(705)
4,466
(159)
10,298
(71,514)
20,933
(78,432)
(4,950)
39,220
(4,231)
41,413
13,481
–
13,481
(9,392)
(4,089)
–
(5,425)
(1,336)
(5,329)
(1,496)
(24)
(8,185)
–
(205)
(8,390)
–
(8,390)
180
(8,210)
9,871
(32,999)
37,770
–
37,770
(29,308)
8,462
–
(22,591)
(14,129)
(687)
(1,674)
(57)
(16,547)
–
(471)
(17,018)
–
(17,018)
(168)
(17,186)
21,168
(37,178)
Notes to the Financial Statements
FOR THE YEAR ENDED 30 JUNE 2021
26. CASH FLOW INFORMATION
Loss before income tax
Non-cash flows in loss
Depreciation and amortisation
Loss on disposal of assets
Impairment of non-current assets
Doubtful debts
Foreign exchange losses
(Reversal)/impairment of assets
Finance costs
Change in inventories
Change in receivables
Change in provisions
Change in trade payables and employee benefits
Change in current assets
Net cash provided in operating activities
27. SHARE BASED PAYMENTS
27(a) Shares and options
No shares or options were granted by the Company during the 2021 or 2020 years.
27(b) Performance rights
No performance rights were issued in the 2021 or 2020 years.
2021
$’000s
(8,210)
1,520
31
5,329
172
66
(198)
-
518
2,682
69
(180)
-
1,799
2020
$’000s
(17,186)
1,731
-
230
457
45
90
178
473
423
41
16,751
(1,272)
1,961
28. SUBSEQUENT EVENTS
On 3 September 2021, 555,555 shares were issued @ 0.90 cents per share in consideration for services to IEC.
On 23 July 2021 the main mining licence for Tancoal in Tanzania was renewed.
The Company was advised on 9 September 2021 that its ELA6305 Application at Louth, NSW had been approved.
Aside from the 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.
29. RELATED PARTY TRANSACTIONS
Details relating to Key Management Personnel are disclosed in Note 5 and remuneration report contained in the
directors’ report.
2021
At 30 June 2021 a loan of US$150,000 (A$199,000) to Malcoal joint venture partner Consolidated Mining
Industries Limited, a private Malawian entity remained outstanding. The loan was to be repaid from first
dividends from Malcoal and interest is charged on the loan at the rate of 5% per annum. The loan was fully
impaired at 30 June 2016 and remained unpaid at 30 June 2021.
Page 58
Notes to the Financial Statements
FOR THE YEAR ENDED 30 JUNE 2021
29. RELATED PARTY TRANSACTION (CONT’D)
At 30 June 2021, $103,000 was receivable from Geothermal Power Tanzania Limited and NuEnergy Gas
(Tanzania) Limited, $12,000 was receivable from NuAfrica Limited and $12,000 was receivable from Tanzagrain
Limited, for services provided in a prior year, related parties to Graeme Robertson. The companies are no longer
operating so the balances were fully impaired at 30 June 2021.
A company related to Graeme Robertson provides management services for subsidiary companies in Mauritius
and during 2021 the company provided services of US$31,409.
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 $311,000 was outstanding at 30
June 2021.
At 30 June 2021 an amount of $2.037m was owed to National Development Corporation (“NDC”) the 30% joint
venture partner in Tancoal Energy Limited for unpaid management fees.
2020
At 30 June 2020 a loan of US$150,000 (A$218,000) to Malcoal joint venture partner Consolidated Mining
Industries Limited, a private Malawian entity remained outstanding. The loan was to be repaid from first
dividends from Malcoal and interest is charged on the loan at the rate of 5% per annum. The loan was fully
impaired at 30 June 2016 and remained unpaid at 30 June 2020.
At 30 June 2020, $115,000 was receivable from Geothermal Power Tanzania Limited and NuEnergy Gas
(Tanzania) Limited, $13,000 was receivable from NuAfrica Limited and $13,000 was receivable from Tanzagrain
Limited, for services provided in a prior year, related parties to Graeme Robertson. The companies are no longer
operating so the balances were fully impaired at 30 June 2020.
A company related to Graeme Robertson provides management services for subsidiary companies in Mauritius
and during 2020 the company provided services of US$9,000.
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 $341,000 was outstanding at 30
June 2020.
At 30 June 2020 an amount of $1.255m was owed to National Development Corporation (“NDC”) the 30% joint
venture partner in Tancoal Energy Limited for unpaid management fees.
30. FINANCIAL RISK MANAGEMENT
Exposure to credit and interest rate risks arises in the normal course of the Group’s businesses. The Group 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 Group’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 Group, 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 Group’s activities. The Group, 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.
30(a) Credit risk
Credit risk is the risk of financial loss to the Group if a customer or counterparty to a financial instrument fails to
meet its contractual obligations, and arises principally from the Group’s receivables from customers and
investment securities.
Page 59
Notes to the Financial Statements
FOR THE YEAR ENDED 30 JUNE 2021
30. FINANCIAL RISK MANAGEMENT (CONT’D)
Exposure to credit risk
The carrying amount of the Group’s financial assets represents the maximum credit exposure. The Group’s
maximum exposure to credit risk at the reporting date was:
Trade and other receivables
Cash and cash equivalents
Total
Trade and other receivables
2021
$’000s
1,498
548
2,046
2020
$’000s
4,180
322
4,502
Some of the Group’s receivables relate to GST and other taxation (including VAT) due from the Australian and
Tanzanian taxation offices and trade receivables from coal sales.
Cash and cash equivalents
Cash and cash equivalents comprise of cash on hand and demand deposits. The Group limits its credit risk by
holding its cash balance and demand deposits with reputable counterparties with acceptable credit ratings.
30(b) Liquidity risk
Liquidity risk is the risk that the Group will not be able to meet its financial obligations as they fall due. The
Group’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 Group’s reputation. The Board monitors liquidity risk on a monthly basis.
The Group’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.
The following are the contractual maturities of financial liabilities, including estimated interest payments and
excluding the impact of netting agreements:
30 June 2021
CARRYING
AMOUNT
$’000S
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
Non-derivative financial liabilities
Current
Bank overdraft
797
797
797
–
Trade and other payables
19,035
19,035
17,673
1,362
Interest bearing liabilities
Lease liabilities
909
388
909
388
470
197
274
191
21,129
21,129
19,137
1,827
–
-
165
-
165
–
-
-
–
–
Non current
Trade and other payables
10,801
Total
10,801
–
–
–
–
–
–
3,600
7,201
3,600
7,201
–
–
–
–
–
–
–
Page 60
Notes to the Financial Statements
FOR THE YEAR ENDED 30 JUNE 2021
30. FINANCIAL RISK MANAGEMENT (CONT’D)
30 June 2020
CARRYING
AMOUNT
$’000S
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
Non-derivative financial liabilities
Current
Bank overdraft
1,287
1,287
1,287
Trade and other payables
20,796
20,796
20,796
Interest bearing liabilities
Lease liabilities
Total
Non current
1,336
1,533
1,336
1,533
529
712
24,952
24,952
23,324
1,195
–
–
459
736
–
–
320
85
405
–
–
28
–
28
Trade and other payables
11,209
Total
11,209
11,209
11,209
–
–
–
–
2,802
8,407
2,802
8,407
–
–
–
–
–
–
–
Cash and receivables
The following are the contractual maturities of financial assets including receivables.
30 June 2021
Financial assets
Cash
Trade and other receivables
Total
30 June 2020
Financial assets
Cash
Trade and other receivables
Total
CARRYING
AMOUNT
$’000S
548
1,498
2,046
CARRYING
AMOUNT
$’000S
322
4,180
4,502
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
548
1,498
2,046
548
1,498
2,046
–
–
–
–
–
–
–
–
–
–
–
–
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
322
4,180
4,502
322
4,180
4,502
–
–
–
–
–
–
–
–
–
–
–
–
Page 61
Notes to the Financial Statements
FOR THE YEAR ENDED 30 JUNE 2021
30. FINANCIAL RISK MANAGEMENT (CONT’D)
30(c) Market risk
Market risk is the risk that changes in market prices, such as interest rates and equity prices will affect the
Group’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.
(i) Interest rate risk
Profile
At the reporting date the interest rate profile of the Group’s interest-bearing financial instruments was:
30 June 2021
Financial assets
Cash and cash equivalents
Trade and other receivables
Total
Financial liabilities
Current
Bank overdraft
Trade and other payables
Interest bearing liabilities
Lease liabilities
Total
Non-current
Trade and other payables
Lease liabilities
Total
NET FINANCIAL ASSETS/ (LIABILITIES)
AVERAGE INTEREST RATE
%
FLOATING INTEREST
RATE %
0%
0%
–
–
–
–
–
–
–
–
–
–
–
–
–
8%
–
8%
10%
–
–
8%
–
–
TOTAL
$’000S
548
1,498
2,046
797
19,035
909
388
21,129
10,801
-
10,801
31,930
Page 62
Notes to the Financial Statements
FOR THE YEAR ENDED 30 JUNE 2021
30. FINANCIAL RISK MANAGEMENT (CONT’D)
30 June 2020
Financial assets
Cash and cash equivalents
Trade and other receivables
Total
Financial liabilities
Current
Bank overdraft
Trade and other payables
Interest bearing liabilities
Lease liabilities
Total
Non-current
Trade and other payables
Lease liabilities
Total
NET FINANCIAL ASSETS/ (LIABILITIES)
AVERAGE INTEREST RATE
%
FLOATING INTEREST
RATE %
0%
0%
–
–
–
–
–
–
–
–
–
–
–
–
–
8%
–
8%
10%
–
–
8%
–
–
TOTAL
$’000S
322
4,180
4,502
1,287
20,796
1,336
1,448
24,867
11,209
85
11,294
(31,659)
The Group’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.
PROFIT OR LOSS
EQUITY
10% INCREASE
$’000S
10% DECREASE
$’000S
10% INCREASE
$’000S
10% DECREASE
$’000S
–
(7)
(4)
(11)
–
7
4
11
–
(7)
(4)
(11)
–
7
4
11
30 June 2021
Financial assets
Cash and cash equivalents
Interest bearing liabilities
Lease liabilities
Total
Page 63
Notes to the Financial Statements
FOR THE YEAR ENDED 30 JUNE 2021
30. FINANCIAL RISK MANAGEMENT (CONT’D)
30 June 2020
Financial assets
Cash and cash equivalents
Interest bearing liabilities
Lease liabilities
Total
Foreign currency risk
PROFIT OR LOSS
EQUITY
10% INCREASE
$’000S
10% DECREASE
$’000S
10% INCREASE
$’000S
10% DECREASE
$’000S
–
(7)
(4)
(11)
–
11
15
26
–
(7)
(4)
(11)
–
11
15
26
As a result of activities overseas, the Group’s Consolidated Statement of Financial Position can be affected by
movements in exchange rates.
The Group also has transactional currency exposures. Such exposure arises from transactions dominated in
currencies other than the functional currency of the entity.
The Group currently does not engage in any hedging or derivative transactions to manage foreign currency risk.
The Group’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 Group 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 Group is additionally exposed to the USD by way of its USD denominated loans to the KCB Bank Tanzania
Limited and leases with Kanu Equipment. The foreign currency gains or losses arising from this risk are recorded
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 Group. 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
2021 would have decreased the net liabilities of the Tanzanian and Malawian subsidiaries by A$0.11m (20:
decrease $1.840m). A 10% weakening of the Australian dollar against the Tanzanian Shilling and Malawian
Kwacha at 30 June 2021 would have increased the net liabilities of the Tanzanian and Malawian subsidiaries by
A$1.75m (2020: decreased $2.25m).
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 2021 would have
decreased net interest bearing liabilities of the interest bearing loans and lease liabilities by A$0.11m (2020:
$0.26m). A 10% weakening of the Australian dollar against the United States dollar at 30 June 2021 would have
increased net interest bearing liabilities and lease liabilities by A$0.11m (2020: $0.32m).
The impact on profit or loss arising from changes in this currency risk variables would be taken to the Statement
of Comprehensive Income.
Page 64
Notes to the Financial Statements
FOR THE YEAR ENDED 30 JUNE 2021
30. FINANCIAL RISK MANAGEMENT (CONT’D)
The above analysis assumes that all other variables, in particular interest rates and equity prices, remain
constant.
30(d) Fair value versus carrying amounts
The Group’s carrying mounts of fair value assets and liabilities equate to their corresponding fair values.
30(e) 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 Group’s approach to capital management during the year. Neither the Group nor
any of its subsidiaries are subject to externally imposed capital requirements.
31. PARENT ENTITY DISCLOSURES
Financial Position of Intra Energy Corporation Limited
Assets
Current Assets
Cash and cash equivalents
Trade and other receivables
Total Current Assets
Non-Current Assets
Investment in subsidiaries1
Investments
Total Non-Current Assets
Total Assets
Current Liabilities
Trade and other payables
Total Liabilities
Net Assets
Equity
Issued capital
Reserves
Accumulated losses
Total Equity
2021
$’000S
2020
$’000S
118
35
153
4,136
234
4,370
4,523
705
705
3,818
69,654
2,998
(68,834)
3,818
76
28
104
4,136
226
4,362
4,466
159
159
4,307
69,590
2,998
(68,281)
4,307
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 assets.
2. The Parent has net current liabilities of $0.552m (2020: net current assets of $0.055m)
Page 65
Notes to the Financial Statements
FOR THE YEAR ENDED 30 JUNE 2021
31. PARENT ENTITY DISCLOSURES (CONT’D)
Financial Performance of Intra Energy Corporation Limited
Loss for the year
Total Comprehensive Income
2021
$’000S
(422)
(422)
2020
$’000S
(222)
(222)
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 66
ASX Additional Information
FOR THE YEAR ENDED 30 JUNE 2021
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 17 September 2021.
(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
LISTED ORDINARY SHARES
NUMBER OF
HOLDERS
8,241
225,441
791,682
11,880,307
385,373,914
10.86
10.72
13.51
38.58
26.32
100.00
398,279,585
78
77
97
277
189
718
NUMBER OF SHARES
0.00
0.06
0.20
2.98
96.76
100.00
The number of shareholders holding less than a marketable parcel of shares
are:
466
7,647,078
(b)
Twenty Largest Shareholders
The names of the twenty largest holders of quoted shares are:
LISTED ORDINARY SHARES
NUMBER OF
SHARES
PERCENTAGE OF
SHARES
115,762,065
29.07
18,611,108
18,350,000
11,362,194
10,097,855
10,064,230
10,000,000
9,802,440
8,835,770
8,731,766
8,474,297
7,975,390
6,850,625
6,808,389
6,250,000
6,245,368
5,250,000
5,205,305
4,399,702
3,812,440
282,888,944
115,390,641
398,279,585
4.67
4.61
2.85
2.54
2.53
2.51
2.46
2.22
2.19
2.13
2.00
1.72
1.71
1.57
1.57
1.32
1.31
1.10
0.96
71.03
28.97
100.00
1.
ASPAC MINING LIMITED
2. MR BOBBY VINCENT LI
3. MR ROBERT GEMELLI
4.
5.
6.
7.
ROTHSTEIN PTY LTD
CIRCLESTAR PTY LTD
SPRINGTIDE CAPITAL PTY LTD
BENJAMIN DUNN
8. MISS ALICE JANE LI
9. NUVOLARI CAPITAL LIMITED
10. MR PETER TSEGAS
11. MR GRAEME LANCE ROBERTSON
12. MARA SUPERANNUATION PTY LTD
13. MARA SUPERANNUATION PTY LTD
14. MR MARK ARIEL SCHWARTZ
15. MR JOSHUA SAMUEL ALTIT
16. ROTHSTEIN PTY LTD
17. GEMELLI HOLDINGS PTY LTD
18.
INTRASIA CAPITAL PTE LTD
19. OZEA PTY LTD
20. BNP PARIBAS NOMINEES PTY LTD SIX SIS LTD
TOTAL
BALANCE OF REGISTER
GRAND TOTAL
Page 67
ASX Additional Information
FOR THE YEAR ENDED 30 JUNE 2021
Substantial Shareholders
(c)
The names of substantial shareholders who have notified the Group in accordance with section 671B of the
Corporations Act 2001 are:
ASPAC MINING LIMITED AND ASSOCIATES
ROBERT GEMELLI AND ASSOCIATES
(d)
Schedule of Mining Tenements
NUMBER OF SHARES
PERCENTAGE OF
ORDINARY SHARES
131,556,585
23,600,000
33.03%
5.93%
AREA OF INTEREST
TENEMENTS
% INTEREST
Tanzania
Tancoal Energy Limited
ML439/2011, PL7391/2011, PL7620/2012,
PL8999/2013, ML610/2020, PL11156/2017
70%
Page 68