IEC Electronics Corp.
Annual Report 2022

Plain-text annual report

Intra Energy Corporation Limited (ABN 65 124 408 751) Annual Financial Report For the year ended 30 June 2022 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 Page 2 Page 3 4 5 7 12 18 19 20 24 25 26 27 28 66 Corporate Directory DIRECTORS Graeme Robertson (Chairman) Benjamin Dunn (Managing Director) Troy Wilson Alan Fraser James Shedd COMPANY SECRETARY Jack Rosagro REGISTERED OFFICE - AUSTRALIA Ground Floor, 16 Ord Street West Perth WA 6005 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 Services 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”, “IntraEnergy” 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 2022. The nature of Intra Energy’s business over the last year has changed from coal production to mineral development as foreshadowed in previous Annual Reports. There has also been a re-focus of activities from Tanzania back to Australia with the sale of IEC’s coal interests in Tanzania. 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 emission 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. Additionally, the use of coal in supporting electricity supply in Europe for the forthcoming winter or acting as a transition fuel to support the use of cleaner energy generation should be encouraged. The sale of Intra Energy’s subsidiary in Tanzania has been particularly frustrating. The sale was fully supported by IEC shareholders which was a condition, however approval by the Fair Competition Commission of Tanzania has been delayed despite being advised of the sale in October 2021. This is nothing short of incompetent. Given the sale is to a local company, it is necessary that the Country rectifies this situation if it wishes to be considered as a credible mining jurisdiction. While IEC exercises no control over the administration of the subsidiary, it considers that the sale will be consummated on receipt of final payment. 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. IEC is still evaluating the development of this resource and increasing shareholding, but this has been overtaken by more exciting opportunities in Australia. An Application has been approved for a prospective lease on land at Louth, north of Cobar in NSW with drill ready targets. The Lease is 100% owned by IEC. The Talowla Project has potential for a high-grade copper discovery. It is expected to commence drilling the 2023 financial year. However, the major target area for Intra Energy’s exploration and development has been the Yalgarra Project in Western Australia. This project was introduced to IEC in 2021 by Century Minerals Pty Ltd (Century) owned by two highly qualified geologists, as an outstanding mineral prospect bordered by several prominent exploration companies which had announced positive exploration results. The Company negotiated a 70% ownership with Century holding retaining 30% and separately investing in IEC. The concession area is in two parts, north and south with the prime commercial target for exploration in the Yalgarra area is magmatic Ni-Cu-PGE sulphides similar to the Julimar discovery of Chalice (ASX:CHN). The Company launched a comprehensive exploration program to identify drill targets mid-2022 consisting of aerial magnetic imaging, ground survey and grab sampling. Results being released in the first half of the 2023 Year are very encouraging. The Company will focus on the further exploration of Yalgarra during the 2023 Year. Intra Energy is also actively looking for other opportunities and is particularly interested in more developed or operating potential. I would like to take this opportunity to acknowledge the work of Mr Ben Dunn and the Board of Directors and Management in advancing the future of IEC on behalf of its shareholders. Sincerely Graeme Robertson Chairman – Intra Energy Corporation Limited Page 4 Review of Operations AUSTRALIAN MINERAL EXPLORATION Following the Board’s decision to exit the production of coal in Tanzania, exploration for new energy and battery materials has been the Company’s focus. In 2021 the Company was granted a license at Louth in New South Wales, Australia, and which is wholly-owned by IEC. The “Talowla Project”, by which this license is known has strong potential for a base metal discovery and Geochemistry work undertaken by the prior holder of the area. Five Drill ready targets have been identified, and subject to approvals being granted by local landowners and Indigenous Peoples. IEC intends to drill these in 2023. During the past Financial Year, the Company was also fortunate to be introduced by Century Minerals Pty Ltd (Century) to an exciting exploration project in Western Australia, that is thought to be prospective for Nickel, Copper and the Platinum Group Elements. The Company negotiated a 70% ownership with Century Minerals Pty Ltd retaining 30% and separately investing in IEC. The concession area is in two parts, north and south with the prime commercial target for exploration in the Yalgarra area is magmatic Ni-Cu-PGE sulphides similar to the Julimar discovery of Chalice (ASX:CHN). Following the license being granted in March 2022, the Company quickly moved to begin exploration with the intention of identifying high quality targets. Late in the Financial Year an Airborne Electromagnetic Survey (AEM) , was undertaken with ground EM and soil geochemistry to follow. Initial results have been very encouraging with the Company working to release these in 1H23. Yalgarra is the primary focus of the Company in 2023. 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. IML is the 95% owner of the Lurio Gold Project in Mozambique. No further investment was made in the Financial Year and no activity was undertaken on the project. MINING OPERATIONS Tancoal (Tanzania) As previously announced in November 2021, IEC reached an agreement with Mirambo Mining Limted, a private Tanzanian company, to sell our entire interest in Intra Energy Tanzania Limited (IETL) for US$2M and the assumption of all debt. Upon announcing the deal, IEC received US$1M with balance of funds (a further US$1M) payable upon the Company receiving both IEC shareholder approval (the EGM was held in February 2022 with shareholders overwhelmingly voting for the sale) and review by the Fair Competition Commission of Tanzania (FCC), which is pending. IEC Shareholders voted overwhelmingly to approve the sale in February of this year, and the Company has been working tirelessly with Mirambo to secure the approval from the FCC, which has not so far been granted. We will continue to work with all parties to secure the successful and final sale of IETL so that Company can move forward with its’ focus on Australian exploration. IEC now has no further interest in coal mining nor activity in Tanzania following the shareholders’ meeting in February 2022. Page 5 Review of Operations CORPORATE The Company announced in the December Quarter, both the sale its Tanzanian subsidiary, Intra Energy Tanzania Limited (IETL), and a capital raising via a placement of approximately 187.5 million fully paid ordinary shares in the Company at an issue price of AU$0.008 per Share to raise gross proceeds of A$1.5 million (before costs) in two tranches. During the March Quarter the Company held an Extraordinary General Meeting for shareholders to ratify both the sale of IETL and the second tranche of the Share placement. Both of these actions were overwhelmingly endorsed by IEC’s shareholders. Page 6 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 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. Graeme Robertson BA, FAICD, MAIE Non-Executive Chairman Troy Wilson Non-Executive Director (appointed 2 October 2017) Page 7 Directors’ Report Alan Fraser Non-Executive Director (appointed 24 August 2018) Benjamin Dunn Managing Director (appointed 23 April 2021) James (Jim) Shedd Managing Director 7 November 2018 – 23 April 2021), CEO appointed 27 December 2016), Executive Director – appointed 21 April 2021) Page 8 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. 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, 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. Directors’ Report COMPANY SECRETARY Rozanna Lee B. Com (Hons), LLB, GradDipACG, AGIA, AGIS Jack Rosagro Company Secretary (Resigned 7 October 2021) Company Secretary (Appointed 7 October 2021) 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. Jack Rosagro is a Chartered Company Secretary, a Fellow of Governance Institute of Australia, and holds a Bachelor of Commerce majoring in Finance. He has 16 years’ experience in capital markets, share registry, and governance. He is currently the company secretary for several ASX listed clients. CORPORATE STRUCTURE IEC is a public company domiciled in Australia and listed on the Australian Stock Exchange (ASX:IEC). The Company has prepared a consolidated financial report incorporating the entities that it controlled during the financial year, which are outlined in Note 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 Special Responsibilities Non-Executive Chairman B Dunn Executive Director T Wilson Non-Executive Director A Fraser J Shedd Non-Executive Director Managing Director/CEO Ordinary Shares 147,181,585 20,625,000 − − − Profit/(loss) Per Share Basic Profit/(loss) per share (cents) 2022 (2.50) 2021 (1.40) NATURE OF OPERATIONS AND PRINCIPAL ACTIVITIES The principal activities of the Consolidated Group during the period were mineral exploration in Australia and progressing the sale of the Tanzanian coal operations. The major focus of the Group was progressing the sale of its operations in Tanzania which was achieved with the purchaser assuming the liabilities of the operations and paying US$ 2.0M subject to approval terms. Strategically, the Group has gravitated to Australia and is actively engaging in the exploration and development of mineral resources with an emphasis on copper/nickel/gold prospects as well as seeking entry into active mining operations. Subject to the sale of its coal assets in Tanzania is completed, it will no longer have operations in the coal mining industry. OPERATING REVIEW The Consolidated Entity’s operations are discussed in detail on pages 10 of this Annual Financial Report. Page 9 Directors’ Report REVIEW OF FINANCIAL POSITION The consolidated results for the year ended 30 June 2022 reflect the reclassification of the Tanzanian operations and Malawi operations as discontinued operations. The results of the comparative period have been re- presented for this reclassification in the consolidated statement of profit or loss and other comprehensive income accordingly. In addition, the assets and liabilities of the companies comprising these operations, have been reclassified as disposal groups held for sale in the consolidated statement of financial position. The current period loss reflects a full impairment of previously capitalised mine development costs, exploration expenditure and other assets of A$7.754M. The Group incurred a net loss after tax (from continuing and discontinued operations) for the year ended 30 June 2022 of $16.535M (30 June 2021: $8.21M). As at 30 June 2022, the Group had a net liability position of $38.636M (30 June 2021: $23.128M). On the 5th of November 2021, IEC received the payment of US$1.0 M being 50% of the amount agreed for the sale of Intra Energy Tanzania Limited which included nearly all of the Group’s net liability position. The Board considers this amount to be non-refundable. This sale was subject to shareholders approval and the consent of the Fair Competition Commission (FCC) of Tanzania. Shareholder’s approval was received on 22nd February at an IEC EGM and FCC approval is awaited. The completion of this sale will consolidate IEC’s announced position as an active Australian-based debt free minerals exploration and development company going forward. CAPITAL STRUCTURE As at the date of signing this report, the Company had 605,781,585 fully paid ordinary shares on issue. DIVIDEND No dividend was paid or declared during the year ended 30 June 2022. CASH FROM OPERATIONS The net cash outflow from operations of $2.563M. The Group had cash at bank of $1.213M (inclusive of cash held by discontinued operations) at 30 June 2022. SIGNIFICANT CHANGES IN THE STATE OF AFFAIRS There are no significant changes to the state of affairs of the Company. SIGNIFICANT EVENTS AFTER THE BALANCE DATE There has not arisen in the interval between the end of the financial year and the date of this report any item, transaction or event of a material and unusual nature likely, in the opinion of the Directors of the Company, to affect significantly the operations of the Company, the results of those operations, or the state of affairs of the Company, in future financial years. ENVIRONMENTAL REGULATION AND PERFORMANCE The Company is subject to environmental regulations and is compliant with all aspects of environmental regulation in its exploration and mining activities, including provision for environmental rehabilitation costs. The Directors are not aware of any environmental law that is not being complied with. SHARES UNDER OPTION As at 30 June 2022, the unissued ordinary shares of the Company under option are as follows. No. of options Grant date Expiry Date Exercise Price ($) 15,000,000 15,000,000 24 February 2022 28 February 2025 24 February 2022 28 February 2025 0.012 0.016 Page 10 Directors’ Report MEETINGS OF DIRECTORS Directors Mr G Robertson Mr B Dunn Mr T Wilson Mr A Fraser Mr J Shedd Attended Available to attend 11 11 6 11 11 11 11 11 11 11 INDEMNIFICATION AND INSURANCE OF DIRECTORS AND OFFICERS The Company has entered into Directors’ Access Indemnity and Insurance Deeds (“Deed”) with each Director. Under the Deed, the Company indemnifies the Directors to the maximum extent permitted by law and the Constitution against legal proceedings, damage, loss, liability, cost, charge, expense, outgoing or payment (including legal expenses on a solicitor/client basis) suffered, paid or incurred by the Directors in connection with the Directors being an officer of the Company, the employment of the officer with the Company or a breach by the Company of its obligations under the Deed. Also pursuant to the Deed, the Company must insure the Directors against liability and provide access to all board papers relevant to defending any claim brought against the Directors in their capacity as officers of the Company. Amounts disclosed for remuneration of directors and specified officers exclude insurance premiums of $219,900 (2021: $170,705) 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 2022, the Company’s corporate governance framework was consistent with the fourth 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 11 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 2022. 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 2022 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. Payment of director fees recommenced in December 2021 following the receipt of placement funds and the 1st instalment due to the Company under the Share Purchase Agreement for the sale of Intra Energy Tanzania Limited. 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; Page 12 Remuneration Report • Non-Executive Directors are remunerated by way of fees (in the form of cash); • Non-Executive Directors are not provided with retirement benefits; and • Non-Executive Directors are not entitled to participate in equity-based remuneration schemes designed for Executives without due consideration and appropriate disclosure to the Company’s shareholders. To the extent that the Company adopts a different remuneration structure for its Non-Executive Directors, the Committee shall document its reasons for the purpose of disclosure to stakeholders. KEY MANAGEMENT PERSONNEL During the year ended 30 June 2022, 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 James Shedd Non-Executive Director Non-Executive Director Executive Director Page 13 NON-EXECUTIVE DIRECTORS Mr G Robertson Mr B Dunn Mr T Wilson Mr A Fraser Mr J Shedd 109,810 170,000 40,000 40,000 569,971 KEY MANAGEMENT PERSONNEL 929,781 None Total 2021 Remuneration Report B. DETAILS OF REMUNERATION 2022 Salary and fees $ Cash bonus $ Other monetary benefits $ Superannuation $ Retirement Benefits $ Long service leave $ Shares $ Options $ Incentive plans $ TOTAL $ % of Remuneration granted as options % Short-term Post-Employment Long-term Share-based Payment – – – – – – – – – – 194,444 194,444 – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – 109,810 170,000 40,000 40,000 764,415 1,124,225 – – – – – – Short-term Post-Employment Long-term Share-based Payment Salary and fees $ Cash bonus $ Other monetary benefits $ Superannuation $ Retirement Benefits $ Long service leave $ Shares $ Options $ Incentive plans $ TOTAL $ % of Remuneration granted as options % 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 – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – 113,363 7,562 40,000 40,000 29,995 449,470 257,388 937,778 – – – – – – – – 1Appointed 23 April 2021, 2Resigned 9 February 2021, 3Resigned 16 May 2021 Page 14 Remuneration Report C. CASH BONUSES There were no cash bonuses paid during the year. D. OPTIONS OR OTHER SHARE BASED PAYMENTS ISSUED AS PART OF REMUNERATION There were no options issued or any other share based payments as part of remuneration to Key Management Personnel during the year (2021: 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 or was owed director’s fees of US$24,810 from Tancoal. Mr Benjamin Dunn was employed as Managing Director on 23 April 2021. Mr Dunn was entitled to fees equivalent to Non-Executive Director’s fees of $40,000 but did not draw a full-time salary until the execution of an Executive Services Agreement (“Agreement”) with the Company in January 2022. The Agreement commenced 1 December 2021 with a term ending 1 June 2023 and notice period of 3 months by either the company or Mr Dunn. The key terms of Mr Dunn’s remuneration package under the Agreement are as follows: • Annual salary of A$216,000 and director’s fees of A$4,000 / month (excluding superannuation • contributions where applicable); Payment of a short-term performance-based bonus at the discretion of the Board, with due consideration of the employee’s performance and the Company’s performance • Annual salary is subject to review governed by the satisfaction of any two of five conditions being met which relate to project acquisition, exploration targets, capital raising and Company market capitalisation targets; and Issue of 30,000,000 performance shares to be converted into ordinary shares of the Company on the completion of specified milestones relating to a project acquisition, exploration targets, capital raising and VWAP targets. The performance shares had not been issued as at 30 June 2022. • 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 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. Following the appointment of Mr Dunn as Managing Director in May 2021, Mr Shedd’s title changed to Executive Director, but he remained as CEO. Mr Shedd’s salary is US$280,000 and is entitled to Director’s fees of 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 per annum and Director’s fees of A$40,000 per annum (including superannuation contributions, were applicable), subject to annual review; Eligibility to participate in the Company’s incentive scheme as approved by the Board from time to time; • • Redundancy pay equivalent to 6-month’s salary 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 2022. Page 15 Remuneration Report E. 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: 2022 Balance at beginning of year Granted during the year as compensation Received during the year on exercise of options Mr G Robertson 131,556,585 Mr B Dunn Mr T Wilson Mr A Fraser Mr J Shedd 10,000,000 – – – – – – – – – – – – – Changes during the year* Balance at the end of the year 15,625,000 147,181,585 10,625,000 20,625,000 – – – – – – Total 167,806,585 – *Changes during the year represent shares acquired or sold by KMP or their associates. Messrs Robertson and Dunn acquired shares through a director placement completed in February 2022) 141,556,585 26,250,000 – 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 Schwarz1 9,058,389 Mr J Shedd Ms K Angel – – – – – – – – – – – – – – – – – – – – – – – 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 – – F. LOANS TO OR FROM DIRECTORS AND EXECUTIVES No loans were made to or by any Directors or Executives during the financial year (2021: None). End of Remuneration Report Page 16 Directors’ Report NON-AUDIT SERVICES There were no fees for non-audit services paid to the external auditors or an affiliated entity of the external auditors during the year ended 30 June 2022. LEAD AUDITOR’S INDEPENDENCE DECLARATION The lead auditor’s independence declaration is set out on page 18 and forms part of the Directors’ Report for the financial year ended 30 June 2022. 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 2022 Page 17 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 2022, 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 STEWART THOMPSON Partner Dated: 30 September 2022 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 2022 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 2022. The declaration is signed in accordance with a resolution of the Board of Directors. GRAEME ROBERTSON Chairman Dated this 30 September 2022 Page 19 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 (the company) and its controlled entities (the group), which comprises the consolidated statement of financial position as at 30 June 2022, 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 group 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 2022 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 $16,535,000 for the year ended 30 June 2022, and as of that date the group had net liabilities of $38,636,000. 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 2022. 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 exploration expenditure Refer to Note 13 Exploration expenditure and Note 1(y) Critical accounting judgements and key sources of estimation uncertainty At 30 June 2022 the group’s statement of capitalised financial exploration to $335,000. expenditure amounting includes position Our procedures included, amongst others: • Verifying, on a sample basis, exploration expenditure capitalised during the year has met recognition and measurement criteria of AASB 6. the the requirements of AASB This is a key audit matter due to significant management judgement applied in assessing whether capitalised exploration expenditure meets 6 “Exploration for and Evaluation of Mineral Resources”. This include but not limited to judgement applied in determining whether there are any facts or circumstances that exist to suggest the carrying amount of exploration expenditure may exceed recoverable amount. its • Assessing whether rights to tenure of those remained current at interest areas of balance date. holding • Considering the ongoing the status of exploration programmes in those areas of discussion with interest by management, group’s reviewing exploration budgets, ASX announcements and directors’ minutes. or • Considering whether circumstances existed the carrying amount of exploration expenditure has exceeded its recoverable amount. any facts to suggest the • Reviewing the adequacy of the related disclosures within the financial statements. 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 2022 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. 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 Responsibilities of the Directors for the Financial Report The directors of the company are responsible for the preparation of the financial report that gives a true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such internal control as the directors determine is necessary to enable the preparation of the financial report that gives a true and fair view and is free from material misstatement, whether due to fraud or error. In preparing the financial report, the directors are responsible for assessing the 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. 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 - 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. 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 2022. In our opinion, the remuneration report of Intra Energy Corporation Limited, for the year ended 30 June 2022, 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 STEWART THOMPSON Partner Dated: 30 September 2022 Consolidated Statement of Profit or Loss and Other Comprehensive Income FOR THE YEAR ENDED 30 JUNE 2022 Sales revenue Cost of production Gross Profit Other income Foreign exchange gain Compliance and regulatory expenses Legal and professional expenses Depreciation and amortisation Remuneration and employee expenses Exploration expenses Impairment of investment Other expenses Prior period expenses for taxes and audits Loss on disposal of assets Share based payments Finance expenses Loss Before Income Tax Income tax benefit Loss from continuing operations Loss from 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 CONSOLIDATED 2022 $’000S 2021 $’000S RESTATED - - - - 1 (119) (286) (1) (417) (245) (234) - - - 114 40 (235) (29) - (318) - - (1,002) (1,071) - (391) - (2,694) - (2,694) (13,841) (16,535) (1,010) (17,545) (11,863) (4,672) (16,535) (10,797) (6,748) (17,545) (2.50) (0.57) (1.93) 4 2 7 7 7 - (31) - (7) (1,537) - (1,537) (6,673) (8,210) 1,028 (7,182) (5,536) (2,674) (8,210) (5,508) (1,674) (7,182) (1.40) (0.39) (1.01) 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 24 Consolidated Statement of Financial Position AS AT 30 JUNE 2022 CONSOLIDATED 2022 $’000S 2021 $’000S NOTES Assets Current Assets Cash and cash equivalents Inventories Trade and other receivables Disposal group/assets held for sale 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 Deferred revenue Lease liabilities Disposal group/liabilities related to assets held for sale 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 9 10 2b 11 11 12 13 14 15 16 2 17 2b 15 17 18 19 20 22 1,043 - 153 170 1,366 3 - - 335 - 338 1,704 - 558 10 - 1,350 - 38,422 40,340 - - - - 40,340 (38,636) 71,305 3,764 (94,081) (19,012) (19,624) (38,636) 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) The Consolidated Statement of Financial Position should be read in conjunction with the accompanying notes to the Financial Statements. Page 25 Consolidated Statement of Cash Flows FOR THE YEAR ENDED 30 JUNE 2022 CONSOLIDATED NOTES Cash Flows from Operating Activities Receipts from customers Payments to suppliers and employees Interest paid Net cash (used in) provided from 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 Proceeds from deposit for sale of business Net cash (used in) investing activities Cash Flows from Financing Activities Proceeds from issue of shares Share and option issue costs Repayment of interest-bearing liabilities Repayment of lease liabilities Proceeds from borrowings Net cash provided from (used in) financing activities Net increase in cash and cash equivalents Cash and cash equivalents at beginning of year Effects of exchange rate changes on cash Cash and Cash Equivalents at end of year Cash and cash equivalents Bank overdrafts Cash and Cash equivalents in the Statement of Cash Flows 2022 $’000S 3,696 (6,088) (171) (2,563) (95) (4) 11 1,350 1,262 1,500 (94) (520) (58) 1,958 2,786 1,485 (249) (23) 1,213 1,213 - 1,213 For the purpose of the statement of cash flows, cash and cash equivalents comprise the following at 30 June: Cash at banks and on hand Cash at banks attributable to discontinued operations Bank overdrafts attributable to discontinued operations Cash and cash equivalents 1,043 170 - 1,213 2021 $’000S 17,681 (15,677) (205) 1,799 (23) (56) 349 126 396 64 - (988) (843) 222 (1,545) 650 (965) 66 (249) 548 (797) (249) 548 - (797) (249) Cash and cash equivalents include bank overdrafts that are repayable on demand and form an integral part of the Group’s cash management. The Consolidated Statement of Cash Flows should be read in conjunction with the accompanying notes to the Financial Statements. Page 26 Consolidated Statement of Changes in Equity FOR THE YEAR ENDED 30 JUNE 2022 CONSOLIDATED At 1 July 2021 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 Share issue costs Share based payments Total transactions with owners Balance at 30 June 2022 1,740 (94) 5 1,651 71,305 - - - (11,863) - (11,863) - - - - ISSUED CAPITAL $’000S ACCUMULATED LOSSES PERFORMANCE RIGHTS $’000S $’000S OPTION RESERVE $’000S FOREIGN CURRENCY TRANSLATION RESERVE TOTAL NON-CONTROLLING INTEREST $’000S $’000S 69,654 (82,218) 795 2,216 (699) (10,252) $’000S (12,876) TOTAL EQUITY $’000S (23,128) - - - - - - - - - - - - 386 386 - (11,863) (4,672) (16,535) 1,066 1,066 1,066 (10,797) (2,076) (6,748) (1,010) (17,545) - - - - 1,740 (94) 391 2,037 - - - - 1,740 (94) 391 2,037 (94,081) 795 2,602 367 (19,012) (19,624) (38,636) CONSOLIDATED At 1 July 2020 ISSUED CAPITAL $’000S ACCUMULATED LOSSES PERFORMANCE RIGHTS $’000S $’000S OPTION RESERVE $’000S FOREIGN CURRENCY TRANSLATION RESERVE TOTAL NON-CONTROLLING INTEREST $’000S $’000S 69,590 (76,682) 795 2,216 (727) (4,808) $’000S (11,202) TOTAL EQUITY $’000S (16,010) 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 64 64 (5,536) − (5,536) − − − − − − − − − − − − − (5,536) (2,674) (8,210) 28 28 − − 28 (5,508) 64 64 1,000 (1,674) − − 1,028 (7,182) 64 64 Balance at 30 June 2021 69,654 (82,218) 795 2,216 (699) (10,252) (12,876) (23,128) Page 27 The Consolidated Statement of Changes in Equity should be read in conjunction with the accompanying notes to the Financial Statements. Notes to the Financial Statements FOR THE YEAR ENDED 30 JUNE 2022 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 2022 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 mineral exploration in Australia and the mining and sale of coal in Tanzania. The consolidated financial statements were approved by the Board and authorised for issue on 30 September 2022. 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 2022 year of $16.535m. As at balance date, the Group's current liabilities exceeded its current assets by $38.974m and had net liabilities of $38.636m. In assessing the appropriateness of using the going concern assumption, the Directors have noted: • The Company divested its loss-making Tanzanian coal operations through the sale of Intra Energy Tanzania Limited (“IETL”) for US$2m, of which $1m is to be received at the reporting date and to the date of this report. Substantial net liabilities will exit the Group upon completion of the sale (see Note 2). 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. Prepared a forecast which shows that the Group has sufficient cash to meet its obligations for the next 12 months following sign-off of these financial statements. Should the second instalment of the sale proceeds not be received, the company can postpone certain key activities under its exploration programme while still meeting minimum required exploration commitments. The Company has commenced negotiation with a broker to undertake a capital raising via placement expected to be completed in quarter 2 of FY23. Retained their confidence in the strategic value of the Group as it looks to develop its exploration projects in Australia. • • • • • However, if the 2nd instalment from the sale of IETL of US$1m is not received, and the Group reaches a point where it is unable to further postpone certain key activities under its exploration programme, the Group will be required to raise further debt or equity or divest assets to continue as a going concern. Whilst the Directors remain confident in the Group’s ability to access further working capital through debt, equity or asset sales if required, there remains material uncertainty as to whether the Group will continue as a going concern. Had the going concern basis not been used, adjustments would need to be made relating to the recoverability and classification of certain assets, and the classification and measurement of certain liabilities to reflect the fact that the Group may be required to realise its assets and settle its liabilities other than in the ordinary course of business, and at amounts different from those stated in the consolidated financial statements. Page 28 Notes to the Financial Statements FOR THE YEAR ENDED 30 JUNE 2022 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 29 Notes to the Financial Statements FOR THE YEAR ENDED 30 JUNE 2022 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 30 Notes to the Financial Statements FOR THE YEAR ENDED 30 JUNE 2022 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 31 Notes to the Financial Statements FOR THE YEAR ENDED 30 JUNE 2022 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 32 Notes to the Financial Statements FOR THE YEAR ENDED 30 JUNE 2022 1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONT’D) L. 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 33 Notes to the Financial Statements FOR THE YEAR ENDED 30 JUNE 2022 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 34 Notes to the Financial Statements FOR THE YEAR ENDED 30 JUNE 2022 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 and receives services from suppliers and consultants, in the form of share-based payment transactions, whereby employees or suppliers and consultants render services in exchange for shares or rights over shares (“equity-settled transactions”). The cost of these equity settled transactions with employees or suppliers and consultants is measured by reference to the fair value of the services provided or, if this cannot be reliably measured, the fair value at the date at which the instruments are granted. The fair value of the instrument 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. Page 35 Notes to the Financial Statements FOR THE YEAR ENDED 30 JUNE 2022 1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONT’D) 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 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. Page 36 Notes to the Financial Statements FOR THE YEAR ENDED 30 JUNE 2022 1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONT’D) T. Trade and other payables 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. U. Leases 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 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. Page 37 Notes to the Financial Statements FOR THE YEAR ENDED 30 JUNE 2022 1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONT’D) 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 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 Tanzanian and Malawi government in relation to the divestment process and ongoing logistical issues with the operation of the mine, the Group recognised a full impairment on the carrying value of its Tanzanian and Malawian subsidiaries. Page 38 Notes to the Financial Statements FOR THE YEAR ENDED 30 JUNE 2022 1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONT’D) Z. Comparative figures When required by Accounting Standards, comparative figures have been adjusted to conform to changes in presentation for the current financial year. Page 39 Notes to the Financial Statements FOR THE YEAR ENDED 30 JUNE 2022 2. ASSETS HELD FOR SALE AND DISCONTINUED OPERATIONS a. Discontinued operations Tanzanian Operations In November 2021, the Company signed a Share Purchase Agreement (“Agreement”) whereby the Company would transfer ownership of Intra Energy Tanzania Limited (“IETL”), which holds the Company’s Tanzanian coal interests, to a local Tanzanian company. Consideration is US$2 million cash paid in two equal tranches, with the first tranche having been received in November 2021 (currently reported as deferred revenue until the sale is completed). Shareholders approved the sale at an extraordinary general meeting held on 22 February 2022. At the reporting date, the sale remains subject to Tanzanian regulatory approval and hence, had not been completed. The operations of IETL have therefore been presented as discontinued operations at the reporting date. The carrying value of the assets had been fully impaired in light of lengthy negotiations with the Tanzanian government in relation to sale process and ongoing logistical issues with the operations of the mine. Financial information relating to the discontinued operations is set out below. The financial performance of the discontinued operations which is included in loss from discontinued operations in the statement of profit or loss and other comprehensive income, is as follows: Tanzanian Operations Revenue Cost of production Expenses Impairment of inventory, property, plant and equipment and trade and other receivables Loss before income tax Income tax (expense)/benefit Loss from discontinued operation, net of tax 2022 $’000S 3,456 (2,753) (6,776) (7,754) (13,827) - (13,827) 2021 $’000S 13,367 (9,392) (10,828) - (6,853) - (6,853) Malawian Operations 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 was in the process of being wound up at the reporting date. Financial information relating to the discontinued operations is set out below. The financial performance of the discontinued operations which is included in loss from discontinued operations in the statement of profit or loss and other comprehensive income, is as follows: Malawian Operations Revenue Expenses Profit before income tax Income tax (expense)/benefit (Loss)/ Profit from discontinued operation, net of tax *Expenses of $18,000 net of impairment reversal of $198,000 Page 40 2022 $’000S - (14) (14) - (14) 2021 $’000S - * 180 180 - 180 Notes to the Financial Statements FOR THE YEAR ENDED 30 JUNE 2022 2. ASSETS HELD FOR SALE AND DISCONTINUED OPERATIONS (CONT’D) a. Discontinued operations – (Cont’d) Total net loss from discontinued operations Tanzanian operations Malawian operations Total net loss b. Assets and liabilities of disposal group held for sale Tanzanian Operations 2022 $’000S (13,827) (14) (13,841) 2021 $’000S (6,853) 180 (6,673) The carrying value assets and liabilities of the group of entities to be sold under the Agreement have been presented as a disposal group at the reporting date. Assets held for sale Cash and cash equivalents Trade and other receivables Inventories Property, plant and equipment Right-of-use assets Total assets held for sale - Tanzania Liabilities related to assets held for sale Trade and other payables Interest bearing liabilities Bank overdraft Lease liabilities Environmental rehabilitation provision Total liabilities related to assets held for sale - Tanzania 2022 $’000S 169 - - - - 169 2022 $’000S 34,889 1,383 - 330 946 37,548 Page 41 Notes to the Financial Statements FOR THE YEAR ENDED 30 JUNE 2022 2. ASSETS HELD FOR SALE AND DISCONTINUED OPERATIONS (CONT’D) b. Assets and liabilities of disposal group held for sale – (Cont’d) Malawian Operations The carrying value assets and liabilities of the group of entities to be wound down have been presented as a Disposal Group at the reporting date. Assets held for sale Cash and cash equivalents Total assets held for sale - Malawi Liabilities related to assets held for sale Trade and other payables Total liabilities related to assets held for sale - Malawi All Operations Total assets held for sale Tanzanian operations Malawian operations Total assets held for sale Total liabilities related to assets held for sale Tanzanian operations Malawian operations Total liabilities related to assets held for sale 2022 $’000S 1 1 2022 $’000S 874 874 2022 $’000S 169 1 170 37,548 874 38,422 Page 42 Notes to the Financial Statements FOR THE YEAR ENDED 30 JUNE 2022 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 2022 $’000S 2021 $’000S RESTATED 1 - 1 - 1 - - - - - Comparatives have been restated for depreciation and amortisation reported under discontinued operations. All depreciation and amortisation in the previous financial year related to the Tanzanian discontinued operation. CONSOLIDATED 2022 $’000S 2021 $’000S 4. INCOME TAX BENEFIT (a) Numerical reconciliation of income tax expense to prima facie tax payable Loss from ordinary activities before income tax expense (16,535) (8,210) Prima facie tax/(benefit) on profit/(loss) from ordinary activities at 25% (2021: 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 25%) Temporary differences Carry forward revenue tax losses Carry forward capital tax losses Carry forward foreign tax losses Total (4,134) (98) 1,621 2,611 - 5,225 4,974 340 17,863 28,402 (2,135) 4 (56) 2,187 - 5,054 4,811 7 18,230 28,102 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. Page 43 Notes to the Financial Statements FOR THE YEAR ENDED 30 JUNE 2022 5. KEY MANAGEMENT PERSONNEL COMPENSATION The following persons were Key Management Personnel of the Company during the financial year: Non-Executive Directors Executive Directors Senior Management Mr G Robertson (Chairman) Mr B Dunn (Managing Director) Mr T Wilson Mr A Fraser Mr J Shedd (Executive Director, CEO) KEY MANAGEMENT PERSONNEL COMPENSATION Short-term employee benefits Superannuation Post-employment benefits Performance rights Total Compensation 2022 $ 1,124,225 - - - 2021 $ 937,778 - - - 1,124,225 937,778 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 There were no options issued or any other share based payments as part of remuneration to Key Management Personnel during the year. 6. AUDITOR’S REMUNERATION CONSOLIDATED 2022 $’000S 2021 $’000S 93 93 195 195 Auditors of the Group - Hall Chadwick Audit services Audit and review of financial reports Total Page 44 Notes to the Financial Statements FOR THE YEAR ENDED 30 JUNE 2022 7. EARNINGS PER SHARE Basic and diluted loss per share 2022 2021 Loss from continuing operations attributable to the ordinary equity holders of the Company (2,694,000) (1,537,000) Profit/(loss) from discontinued operations attributable to the ordinary equity holders of the Company (9,169,000) (3,999,000) Loss attributable to the ordinary equity holders of the Company (11,863,000) (5,536,000) Weighted average number of ordinary shares outstanding during the year used in calculating basic EPS 474,876,632 395,861,016 Loss per share (cents) – basic and diluted from continuing operations (0.57) (0.39) Profit/(loss) per share (cents) – basic and diluted from discontinued operations Loss per share (cents) – basic and diluted (1.93) (2.50) (1.01) (1.40) 8. DIVIDENDS No dividend was paid or declared during the year ended 30 June 2021 and 30 June 2022. 9. INVENTORIES Consumables, fuel and other equipment Coal stock Total Less: Provision for impairment Net carrying amount CONSOLIDATED 2022 $’000S - - - - - 2021 $’000S 302 910 1,212 - 1,212 Inventories held relate entirely to the Tanzanian discontinued operation and have been reclassified as assets held for sale. Refer to Note 2. Page 45 Notes to the Financial Statements FOR THE YEAR ENDED 30 JUNE 2022 10. 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 CONSOLIDATED 2021 $’000S - 50 - 103 153 - 153 217 (217) - 2020 $’000S 2,223 338 127 442 3,130 (1,632) 1,498 199 (199) - Trade and other receivables relating to the Tanzanian and Malawian discontinued operations have been reclassified as assets held for sale (net of any impairment) and are disclosed in Note 2. Page 46 Notes to the Financial Statements FOR THE YEAR ENDED 30 JUNE 2022 11. PROPERTY, PLANT AND EQUIPMENT 30 June 2022 Year ended 30 June 2022 At 1 July 2021, net of accumulated depreciation Reclassified to assets held for sale (prior to impairment) * Additions Depreciation charge Effect of exchange rates (net) At 30 June 2022, net of accumulated depreciation At 30 June 2022 At cost Accumulated depreciation and impairment Net carrying value * Relates to the Tanzanian discontinued operation. Office Equipment $’000 Mining Plant and Equipment $’000 Motor Vehicles $’000 Leasehold $’000 Capital Work in Progress $’000 Software $’000 Right of Use Assets $’000 129 5,589 (129) (5,589) 111 (111) 366 (366) 107 (107) 4 (1) - 3 4 (1) 3 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 77 (77) - - - - - - Total $’000 6,379 (6,379) 4 (1) - 3 4 (1) 3 Page 47 Notes to the Financial Statements FOR THE YEAR ENDED 30 JUNE 2022 11. PROPERTY, PLANT AND EQUIPMENT (CONT’D) 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 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 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) - Total $’000 8,983 56 (349) - (1,495) (816) 6,379 2,095 - - (1,933) (78) (7) 77 231 (154) 77 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 48 Notes to the Financial Statements FOR THE YEAR ENDED 30 JUNE 2022 12. MINE DEVELOPMENT COSTS Tancoal Mine Opening balance Mine development expenditure Rehabilitation asset Amortisation Effect of exchange rates Impairment Net carrying value CONSOLIDATED 2022 $’000s - - - - - - - 2021 $’000s 5,172 23 110 (24) (465) (4,816) - Mine development costs relate entirely to the Tanzanian discontinued operation and were fully impaired in the prior year and have been reclassified as assets held for sale in the current year. Refer to Note 2. 13. EXPLORATION EXPENDITURE Opening balance Exploration expenditure Effect of exchange rates Impairment Net carrying value CONSOLIDATED 2022 $’000s - 335 - - 335 2021 $’000s 554 - (41) (513) - Exploration expenditure relating to the Tanzanian discontinued operation was fully impaired in the prior year and have been reclassified as assets held for sale in the current year. Refer to Note 2. 14. INVESTMENTS Investment in unlisted shares Opening balance Impairment Effect of exchange rates Total CONSOLIDATED 2022 $’000s 234 (234) - - 2021 $’000s 226 - 8 234 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. The investment was fully impaired in the current financial year while the Board reviews whether this investment fits into the Company’s strategy. 15. TRADE AND OTHER PAYABLES Page 49 Notes to the Financial Statements FOR THE YEAR ENDED 30 JUNE 2022 Current Trade payables Related party payables Accruals and other payables Total Non-current Trade and other payables Total CONSOLIDATED 2022 $’000s 161 - 397 558 - - 2021 $’000s 7,681 1,726 9,628 19,035 10,801 10,801 Trade and other payables relating to the Tanzanian and Malawian discontinued operations have been reclassified as liabilities relating to assets held for sale and are disclosed in Note 2. 16. INTEREST BEARING LIABILITIES Current Secured loan facilities Total CONSOLIDATED 2022 $’000s 2021 $’000s - - 909 909 Interest bearing liabilities held relate entirely to the Tanzanian discontinued operation and have been reclassified as liabilities relating to assets held for sale. Refer to Note 2. 17. LEASE LIABILITIES Current Lease liabilities Hire purchase Total Non-current Lease liabilities Total CONSOLIDATED 2022 $’000s 2021 $’000s - - - - - 77 311 388 - - Lease liabilities relate entirely to the Tanzanian discontinued operation and have been reclassified as liabilities related to assets held for sale. Refer to Note 2. Page 50 Notes to the Financial Statements FOR THE YEAR ENDED 30 JUNE 2022 18. PROVISIONS Non-current Rehabilitation provision Total CONSOLIDATED 2022 $’000s - - 2021 $’000s 956 956 The non-current rehabilitation provision relates entirely to the Tanzanian discontinued operation and has been reclassified as liabilities related to assets held for sale. Refer to Note 2. The movement in provisions during the year are as follows: 2022 $000’s Opening balance Reclassification to liabilities held for sale Closing balance 2021 $000’s Opening balance Additions Effect of exchange rates Closing balance Rehabilitation Rehabilitation 956 (956) - Rehabilitation 887 110 (41) 956 Total 956 (956) - Total 887 110 (41) 956 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. Page 51 Notes to the Financial Statements FOR THE YEAR ENDED 30 JUNE 2022 19. ISSUED CAPITAL 2022 Issue price No. $ per share 2022 $’000s 2021 Issue price No. $ per share Balance at the beginning of the year: 397,724,030 69,654 387,724,030 2021 $’000s 69,590 Shares issued - - 10,000,000 $0.0064 64 Shares issued – services provided 1 Shares issued – placement – tranche 1 2 Shares issued – Cleansing Prospectus 3 Shares issued – placement – tranche 2 4 Shares issued – Cleansing Prospectus 5 Shares issued – Yalgarra consideration 6 Shares issued – Cleansing Prospectus 7 Shares issue costs Balance at the end of the year 555,555 0.009 5 57,602,050 0.008 461 1,000 0.008 -* 129,896,950 0.008 1,039 1,000 0.008 -* 20,000,000 0.012 240 1,000 0.008 -* - - (94) - - - - - - - - - - - - - - - - - - - - - - - - 605,781,585 71,305 397,724,030 69,654 * Rounding to thousand. Fully paid ordinary shares carry one vote per share and carry the rights to dividends. 1 On 3 September 2021, 555,555 shares were issued at $0.009 cents per share in consideration for services to IEC. 2 On 3 December 2021, 57,602,050 shares were issued at $0.008 per share via tranche 1 of a placement. 3 On 8 December 2021, 1,000 shares were issued at $0.008 per share under a cleansing prospectus. 4 On 3 March 2022, 129,896,950 shares were issued at $0.008 per share via tranche 2 of a placement which included a director’s placement. 5 On 11 March 2022, 1,000 shares were issued at $0.008 per share under a cleansing prospectus. 6 On 9 June 2022, 20,000,000 shares were issued at $0.012 per share to Century Minerals as part consideration for the acquisition of a 70% interest the tenement comprising the Yalgarra Project under a binding terms sheet executed 25 January 2022. 7 On 10 June 2022, 1,000 shares were issued at $0.008 per share under a cleansing prospectus. Page 52 Notes to the Financial Statements FOR THE YEAR ENDED 30 JUNE 2022 20. RESERVES 20(a) Options reserve Balance at the beginning of the year Options issued Balance at the end of the year 2022 No. − 30,000,000 30,000,000 2022 $’000s 2,216 386 2,602 2021 No. − − − 2021 $’000s 2,216 − 2,216 1. Options reserve recognises the fair value of options issued 2. On 3 March 2022, 15,000,000 options with an exercise price of $0.012 and expiring 28 February 2025 and 15,000,000 options with an exercise price of $0.016 and expiring 28 February 2025, were issued to the Lead Manager (or nominees) as consideration for the provision of lead manager services and bookrunner services relating to marketing and corporate advisory services (promotional activities) pursuant to the Lead Manager mandate. 20(b) Performance Rights reserve Total Performance Rights reserve CONSOLIDATED 2022 $’000s 795 2021 $’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 2022 20(c) Foreign currency translation reserve Balance at the beginning of the year Foreign currency translation differences Balance at the end of the year CONSOLIDATED 2022 $’000s (699) 1,066 367 2021 $’000s (727) 28 (699) 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 2022 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 (%)* 2022 Equity (%)* 2021 Intra Energy (Tanzania) Limited Tanzania Ordinary 100% Tancoal Energy Limited Tanzania Ordinary 70% Intrafrican Resources Limited Mauritius Ordinary 100% Tanzacoal East Africa Mining Limited Tanzania Ordinary AAA Drilling Limited AAA Drilling Limited Mauritius Ordinary Tanzania Ordinary Intra Energy Limited *** Mauritius Ordinary East Africa Mining Limited *** Mauritius Ordinary Intra Energy Trading (Malawi) Limited Malawi Ordinary Malcoal Mining Limited Malawi Ordinary 85% 100% 100% 100% 100% 100% 90% Intra Energy (Sarawak) Sdn. Bhd.** Malaysia Ordinary - Pamodzi Power Limited Malawi Ordinary Intra Eastern Land Pty Ltd Australia Ordinary 100% 100% 100% 70% 100% 85% 100% 100% 100% 100% 100% 90% 100% 100% 100% * Percentage of voting power is in proportion to ownership ** Entity has been wound up *** Entity in the process of being wound up at the reporting date 22. NON-CONTROLLING INTEREST Total non-controlling interest CONSOLIDATED 2022 $’000s 2021 $’000s (19,624) (12,876) 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 2022 23. COMMITMENTS 23(a) Operating Commitments The Company has minimum exploration commitments for its Australian-based projects as follows: - $20,000 annual commitment in relation to the Louth project tenement; and - minimum in-ground expenditure of $600,000 within 2 years of grant of the Yalgarra tenement i.e., by March 2024. At 30 June 2022, $245,000 of exploration expenditure had been incurred in relation to the Yalgarra tenement. 23(b) Capital and Leasing Commitments 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 * Relates to the Tanzanian discontinued operations. Hire Purchase 2022 $’000s 2021 $’000s 330 - 330 - 330 * 311 - 311 - 311 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 $330,000 (2021: $311,000) was outstanding at 30 June 2022. 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 2022. 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 2022 and at the date of this report. A several suppliers have brought legal claims against Tancoal Energy Limited for late payment of their accounts in Tanzania totalling TZS 664 million (A$413,000) for damages on breach of contract, interest and costs of the case. These cases are still pending at 30 June 2022 and hearings have been scheduled from 11 October 2022 to 1 November 2022. The National Securities Social Fund (NSSF), has brought a legal claim against Tancoal Energy Limited for unremitted member’s contributions and accumulated penalties and interest. The case is still pending at 30 June 2022 and a ruling has been scheduled for 21 October 2022. Other than the above, the Directors are not aware of any other contingent liabilities or contingent assets at 30 June 2022. Page 55 Notes to the Financial Statements FOR THE YEAR ENDED 30 JUNE 2022 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 2022 25. SEGMENT REPORTING (CONT’D) Australia Period Ended 30 June 22 $’000 Australia Period Ended 30 June 21 $’000 Africa Period Ended 30 June 22 $’000 Africa Period Ended 30 June 21 $’000 Eliminations Period Ended 30 June 22 $’000 Eliminations Period Ended 30 June 21 $’000 Consolidated Period Ended 30 June 22 $’000 Consolidated Period Ended 30 June 21 $’000 – 886 886 – 886 67 (2,405) (1,452) (234) (1) – (1,687) – 2,100 2,100 – 2,100 – (1,536) 564 – – – 564 – – – – – – (19) – – – – (19) 13,481 – 13,481 (9,392) 4,089 – (3,889) 200 (5,329) (1,496) (24) (6,649) – (886) (886) – (886) (66) (36) – - – – (988) – (2,100) (2,100) – (2,100) – – (2,100) – – – (2,100) 6,854 (1,622) 4,523 (705) 209 (494) 10,298 (71,514) (5,529) 198 (4,950) 39,220 – – – – – 1 (2,460) (2,459) (234) (1) – (2,694) – – (2,694) – (2,694) (13,841) (16,535) 1,534 (1,918) 170 (38,422) (38,636) 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) – – (23,128) Geographical Segment Revenue Sales revenue Inter-segment revenue Total revenue Net costs of production Gross Profit Other income Other operating expenses 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 Assets held for sale Liabilities held for sale Net liabilities Page 57 Notes to the Financial Statements FOR THE YEAR ENDED 30 JUNE 2022 26. CASH FLOW INFORMATION Loss before income tax Non-cash flows in loss Depreciation and amortisation Loss on disposal of assets Impairment of assets Expected credit losses Foreign exchange losses (Reversal)/impairment of assets Share based payments Change in inventories Change in receivables Change in provisions Change in trade payables and employee benefits Net cash (used in) provided from operating activities 27. SHARE BASED PAYMENTS 27(a) Shares and options 2022 $’000s (16,535) 1,313 268 7,988 - (1,676) - 391 39 240 (10) 5,419 (2,563) 2021 $’000s (8,210) 1,520 31 5,329 172 66 (198) - 518 2,682 69 (180) 1,799 On 3 March 2022, 15,000,000 options with an exercise price of $0.012 and expiring 28 February 2025 and 15,000,000 options with an exercise price of $0.016 and expiring 28 February 2025, were issued to the Lead Manager (or nominees) as consideration for the provision of lead manager services and bookrunner services relating to marketing and corporate advisory services (promotional activities) pursuant to the Lead Manager mandate. The options were valued using the Black-Scholes model and vested immediately on grant date. The valuation model inputs used to determine the fair value at the grant date, are as follows Grant date Expiry date 24 Feb 2022 28 Feb 2025 Share price at grant date ($) 0.017 Exercise price ($) 0.012 Expected volatility 125% Dividend yield 0% Risk-free interest rate 1.57% Fair value at grant date ($) 0.013159 24 Feb 2022 28 Feb 2025 0.017 0.016 125% 0% 1.57% 0.012527 No shares or options were granted by the Company during the year ended 30 June 2021. 27(b) Performance rights No performance rights were issued in the 2022 or 2021 years. Page 58 Notes to the Financial Statements FOR THE YEAR ENDED 30 JUNE 2022 28. SUBSEQUENT EVENTS 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. 2022 At 30 June 2022 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 2022. At 30 June 2022, $41,340 was receivable from Geothermal Power Tanzania Limited and NuEnergy Gas (Tanzania) Limited$13,090 was receivable from NuAfrica Limited and $13,440 was receivable from Tanzagrain Limited, for services provided in a prior year, by related parties to Graeme Robertson. The companies are no longer operating so the balances were fully impaired at 30 June 2022. A company related to Graeme Robertson provides management services for subsidiary companies in Mauritius and during 2022 the company provided services of $47,722. At 30 June 2022, an amount of $3.267M was owed to National Development Corporation (“NDC”) the 30% joint venture partner in Tancoal Energy Limited for unpaid management fees. 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. 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. 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. Page 59 Notes to the Financial Statements FOR THE YEAR ENDED 30 JUNE 2022 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. 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 2022 $’000s 153 1,043 1,196 2021 $’000s 1,498 548 2,046 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: Page 60 Notes to the Financial Statements FOR THE YEAR ENDED 30 JUNE 2022 30. FINANCIAL RISK MANAGEMENT (CONT’D) 30 June 2022 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 Trade and other payables Total 30 June 2021 558 558 CARRYING AMOUNT $’000S Non-derivative financial liabilities Current 558 558 558 558 – – – – – – – – 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 – – – – – – – Bank overdraft 797 797 797 – Trade and other payables 19,035 19,035 17,673 1,362 Interest bearing liabilities Lease liabilities Total Non current 909 388 909 388 470 197 274 191 21,129 21,129 19,137 1,827 165 – – 165 – – – – – – Trade and other payables 10,801 Total 10,801 – – – – – – 3,600 7,201 3,600 7,201 Page 61 Notes to the Financial Statements FOR THE YEAR ENDED 30 JUNE 2022 30. FINANCIAL RISK MANAGEMENT (CONT’D) Cash and receivables The following are the contractual maturities of financial assets including receivables. 30 June 2022 Financial assets Cash Trade and other receivables Total 30 June 2021 Financial assets Cash Trade and other receivables Total 30(c) Market risk CARRYING AMOUNT $’000S 1,043 153 1,196 CARRYING AMOUNT $’000S 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 1,043 1,043 153 153 1,196 1,196 – – – – – – – – – – – – 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 548 548 1,498 1,498 2,046 2,046 – – – – – – – – – – – – 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 2022 Financial assets Cash and cash equivalents Trade and other receivables Total Financial liabilities Current Trade and other payables Total NET FINANCIAL ASSETS Page 62 AVERAGE INTEREST RATE % FLOATING INTEREST RATE % 0% 0% 0% – – – – – – – – – – – TOTAL $’000S 1,043 153 1,196 – 558 558 638 Notes to the Financial Statements FOR THE YEAR ENDED 30 JUNE 2022 30. FINANCIAL RISK MANAGEMENT (CONT’D) 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 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. 30 June 2022 Financial assets Cash and cash equivalents Total PROFIT OR LOSS EQUITY 10% INCREASE $’000S 10% DECREASE $’000S 10% INCREASE $’000S 10% DECREASE $’000S – – – – – – – – Page 63 Notes to the Financial Statements FOR THE YEAR ENDED 30 JUNE 2022 30. FINANCIAL RISK MANAGEMENT (CONT’D) 30 June 2021 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) – 7 4 11 – (7) (4) (11) – 7 4 11 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. However, these interests have been reclassified as discontinued operations / assets held for sale under AASB 5 Non-current Assets Held for Sale and Discontinued Operations and accordingly, are not dealt with in this note. The foreign currency risk on the remaining Tanzanian operations is not considered to be significant as these operations are dormant. 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. Page 64 Notes to the Financial Statements FOR THE YEAR ENDED 30 JUNE 2022 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 Property, plant and equipment Exploration expenditure Investment in subsidiaries1 Investments Total Non-Current Assets Total Assets Current Liabilities Trade and other payables Employee Benefits Deferred Revenue Total Liabilities Net Assets Equity Issued capital Reserves Accumulated losses Total Equity 1. All investments and loans to subsidiaries have been fully impaired Financial Performance of Intra Energy Corporation Limited Loss for the year Total Comprehensive Income 2022 $’000S 2021 $’000S 840 148 988 3 335 - - 338 1,326 262 10 1,350 1,622 (296) 118 35 153 - - 4,136 234 4,370 4,523 705 - - 705 3,818 71,305 3,384 (74,985) (296) 69,654 2,998 (68,834) 3,818 2022 $’000S (6,151) (6,151) 2021 $’000S (422) (422) 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 65 ASX Additional Information FOR THE YEAR ENDED 30 JUNE 2022 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 28 September 2022. (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 11,042 212,002 768,099 11,097,789 593,692,653 10.91 9.96 12.82 35.61 30.70 100.00 605,781,585 81 73 94 261 225 734 NUMBER OF SHARES 0.00 0.03 0.13 1.83 98.00 100.00 The number of shareholders holding less than a marketable parcel of shares are: 465 8,202,504 (b) Twenty Largest Shareholders The names of the twenty largest holders of quoted shares are: LISTED ORDINARY SHARES 1 2 3 4 5 6 7 8 9 10 11 11 11 12 13 14 15 16 17 18 19 20 ASPAC MINING LIMITED MR ROBERT GEMELLI CENTURY MINERALS PTY LTD MR BOBBY VINCENT LI SPRINGTIDE CAPITAL PTY LTD MR SCOTT DAVID DEAKIN SOL SAL INVESTMENTS PTY LTD OXLEY PROPERTY NOMINEES PTY LTD ROTHSTEIN PTY LTD GOLDEN DRAGON RESOURCES PTE LTD BENJAMIN DUNN NORFOLK BLUE PTY LTD SYNDICATE MINERALS PTY LTD MISS ALICE JANE LI NUVOLARI CAPITAL LIMITED RECO HOLDINGS PTY LTD MR PETER TSEGAS MR GRAEME LANCE ROBERTSON E & E HALL PTY LTD MARA SUPERANNUATION PTY LTD MARA SUPERANNUATION PTY LTD MR JOSHUA SAMUEL ALTIT TOTAL BALANCE OF REGISTER GRAND TOTAL Page 66 NUMBER OF SHARES 131,387,065 29,850,000 20,000,000 18,611,108 16,739,230 13,103,832 12,777,563 12,000,000 11,362,194 10,625,000 10,000,000 10,000,000 10,000,000 9,802,440 8,835,770 8,750,000 8,731,766 8,474,297 8,396,364 7,975,390 6,850,625 6,250,000 380,522,644 225,258,941 605,781,585 PERCENTAGE OF SHARES 21.69 4.93 3.30 3.07 2.76 2.16 2.11 1.98 1.88 1.75 1.65 1.65 1.65 1.62 1.46 1.44 1.44 1.40 1.39 1.32 1.13 1.03 62.82 37.18 100.00 ASX Additional Information FOR THE YEAR ENDED 30 JUNE 2022 (c) Shareholders by location Australian holders Overseas holders No. of Holders No. of Shares 705 29 539,840,912 65,940,673 734 605,781,585 Substantial Shareholders (d) The names of substantial shareholders who have notified the Group in accordance with section 671B of the Corporations Act 2001 are: NUMBER OF SHARES PERCENTAGE OF ORDINARY SHARES ASPAC MINING LIMITED AND ASSOCIATES 147,181,585 24.30% OPTION HOLDINGS Class Terms A B Exercisable at $0.012 each, expiring 28 February 2025 Exercisable at $0.016 each, expiring 28 February 2025 No. of Options 15,000,000 15,000,000 30,000,000 Options Range Unlisted Options No. of Holders No. of Options 1 – 1,000 1,001 – 5,000 5,001 – 10,000 10,001 – 100,000 100,001 and over 0 0 0 0 15 15 0 0 0 0 30,000,000 30,000,000 The following option holders hold more than 20% of a particular class of the Company’s Unlisted Options. Holder CG NOMINEES (AUSTRALIA) PTY LTD MR JACK THOMAS JOHNS (e) Schedule of Mining Tenements Class A 7,500,000 5,437,500 Class B 7,500,000 3,437,500 AREA OF INTEREST TENEMENTS % INTEREST Tanzania Tancoal Energy Limited ML439/2011, PL7391/2011, PL7620/2012, PL8999/2013, ML610/2020, PL11156/2017 70% Page 67 

Continue reading text version or see original annual report in PDF format above