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