2021 Annual Report
FOR THE YEAR ENDED 30 JUNE 2021
Invictus Energy Limited
ABN 21 150 956 773
Corporate Directory
DIRECTORS
Dr Stuart Lake
Non-Executive Chairman
Mr Joseph Mutizwa
Deputy Chairman &
Non-Executive Director
Mr Scott Macmillan
Managing Director
Mr Barnaby
Egerton-Warburton
Non-Executive Director
Mr Gabriel Chiappini Non-Executive Director
COMPANY
SECRETARY
REGISTERED
OFFICE
SHARE
REGISTER
STOCK
EXCHANGE
LISTING
AUDITOR
SOLICITORS
Mr Gabriel Chiappini
Level 1, 10 Outram Street
West Perth WA 6005
Tel: +618 6102 5055
Fax: +618 6323 3378
Link Market Services Limited
Level 12, QV1 Building
250 St Georges Terrace
Perth WA 6000
Australian Securities Exchange
(ASX: IVZ)
BDO Audit (WA) Pty Ltd
38 Station Street
Subiaco WA 6008
Steinepreis Paganin
Level 4, The Read Buildings
16 Milligan Street
Perth WA 6001
WEBSITE
www.invictusenergy.com
SHAREHOLDER ADDRESS
01
05 DIRECTORS’ REPORT
17 AUDITORS INDEPENDENCE
DECLARATION
18 CONSOLIDATED STATEMENT
OF PROFIT OR LOSS AND
OTHER COMPREHENSIVE
INCOME
19 CONSOLIDATED STATEMENT
OF FINANCIAL POSITION
20 CONSOLIDATED STATEMENT
OF CHANGES IN EQUITY
21
CONSOLIDATED STATEMENT
OF CASH FLOWS
22 NOTES TO THE
CONSOLIDATED
FINANCIAL STATEMENTS
1.
2.
3.
4.
5.
6.
7.
8.
9.
SUMMARY OF
ACCOUNTING POLICIES
NEW AND AMENDED
STANDARDS NOT YET
ADOPTED BY THE GROUP
FINANCIAL RISK MANAGEMENT
CRITICAL ACCOUNTING
ESTIMATES AND JUDGEMENTS
OPERATING SEGMENTS
OTHER REVENUE,
CORPORATE COSTS AND
PROFESSIONAL FEES
AUDITOR REMUNERATION
TAXATION
GAIN/(LOSS) PER SHARE
10. CASH AND CASH EQUIVALENTS
11. TRADE AND OTHER
RECEIVABLES
12. EXPLORATION AND
EVALUATION EXPENDITURE
13. TRADE AND OTHER PAYABLES
14. SHARE CAPITAL
15. RESERVES
16.
INTERESTS IN OTHER ENTITIES
17. RECONCILIATION OF GAIN/
(LOSS) AFTER INCOME TAX TO
NET CASH OUTFLOW USED
18. PARENT ENTITY
19. RELATED PARTY
TRANSACTIONS
20. SHARE-BASED PAYMENTS
21. EVENTS OCCURRING
AFTER REPORTING DATE
22. CAPITAL AND OTHER
COMMITMENTS
23. CONTINGENCIES
45 DIRECTORS’
DECLARATION
46 INDEPENDENT
AUDIT REPORT
50 OTHER ADDITIONAL
ASX INFORMATION
Dear
Shareholders
GLOBAL CONTEXT / FY2021 has been a
challenging year globally with the impact of
the COVID-19 pandemic impacting all our
lives and the communities where we operate.
The resilience of humanity to adapt in the face
of change is cause for hope, and with a vaccine
rollout globally1, businesses are starting to
return to pre-pandemic levels. Invictus has
been able to navigate through an extremely
turbulent period in the oil and gas sector
and we have come through the pandemic
in better shape than when we entered it.
The Company is set up for an exciting
period ahead.
Our revised strategy highlighted in last year’s
report continues to evolve in the current
climate as we boost our ESG (Environmental,
Social, and Corporate Governance) credentials
and enhance our asset base. We believe the
Cabora Bassa asset is well placed to benefit
from the transition to natural gas as an
important less carbon intensive fuel source
in the energy mix. In addition we are looking
at options to be carbon neutral within a year
in line with seeking to play a role with others
in addressing climate change2.
(1) As of 15th September 2021, 5.79 Billion Vaccine doses given globally
with over 30% of the world population fully vaccinated. Ref John Hopkins
University & Medicine.
(2) The United National Intergovernmental Panel on Climate Change (IPCC)
reported that climate change is real, with rise in manmade CO2 being the
largest contributor. Governments and Companies need to reduce and
mitigate their emissions and carbon footprint if Climate Change impact
is to be reduced. 6th Assessment Report August 2021.
01
INVICTUS ENERGY LIMITED2021 ANNUAL REPORT Following the award of the Environmental
Impact Assessment (EIA Certificate 8000092361)
in August 2020, the Company commenced
the next phase of our work program to mature
the project through to the drilling phase.
02
INVICTUS ENERGY LIMITED2021 ANNUAL REPORT Shareholder
Address
The Cabora Bassa Asset
Invictus has made further significant progress in the past year
progressing the development of the Cabora Bassa Project
in Zimbabwe that encompasses the Muzarabani Prospect,
a multi-TCF conventional gas-condensate target which is
potentially the largest, undrilled seismically defined structure
onshore Africa. The prospect was defined by a robust dataset
acquired by Mobil in the early 1990s that includes seismic,
gravity, aeromagnetic and geochemical data, much of which
was reprocessed in 2019/20.
Following the award of the Environmental Impact Assessment
(EIA Certificate 8000092361) in August 2020, the Company
commenced the next phase of our work program to mature the
project through to the drilling phase. Invictus tendered out the
planned seismic survey to three bidders and selected Polaris
Natural Resources Inc. from Canada on the basis of cost, time
and quality. Polaris have carried out over 1000 seismic projects
globally since 1996 and over 15 projects in East Africa, including
introducing the first low impact seismic survey into Africa in
2008. Polaris will acquire a minimum of 400-line kilometres 2D
infill seismic of the former Mobil seismic programme to identify
the best drill location.
In December 2020, Invictus received a non-binding farm-in
agreement but after extensive engagement with the other
parties, that agreement was terminated in June when Invictus
was unable to satisfactorily complete the required transaction
due diligence on the counterparty. The Company has made
significant progress since the farm-in offer was received and
been able to create additional value through sole funding the
seismic survey. This places the Company in a stronger position
as we continue to engage with additional interested parties
ahead of a high impact basin opening drilling campaign
scheduled for 1H 2022.
In March 2021, His Excellency President E.D. Mnangagwa signed
the Petroleum Exploration Development and Production
Agreement (PEDPA) for the Republic of Zimbabwe. The PEDPA
provides the licence holder the right to enter into a 25-year
production licence following the exploration periods and the
PEDPA also provides for Special Economic Zone Status for the
Cabora Bassa Project.
In June 2021, Invictus appointed Aztech as Drilling Project
Manager. Aztech Well Construction is a well project
management company headquartered in Perth with an
extensive track record in both onshore and offshore drilling
projects. The preliminary Basis of Well Design (BoWD) has
been completed, which will enable the ordering of long lead
drilling items (casing and wellheads) for fabrication shortly.
The BoWD will be further refined and finalised once the seismic
processing and interpretation has been completed. Aztech are
concluding the technical evaluation of the rig contractor options
ahead of shortlisting to participate in a formal process to select
a rig for the campaign.
Also in June 2021, the SG 4571 tenure renewal was formally
gazetted for a further 3 years and now expires in June 2024.
The second period of the work program requires the acquisition
of a minimum of 300 line kms of 2D seismic and the drilling of
one exploration well.
Polaris started their operations in country in July 2021, the first
seismic operation in country for 30 years having mobilized from
Tanzania, with 5 vibroseis trucks and the STRYDE nodal system,
the world’s smallest and lightest autonomous wireless node
recording system to minimize the environmental impact.
The recruitment of over 100 local employees involved in the
seismic campaign have all been filled from the local community
in line with the Company’s strong commitment to local content
and employment. The Company will continue to focus on
supporting the local communities in which we work.
We also launched the next phase of our CSR program in the
Muzarabani and Mbire Districts focusing on the provision of
water to the community as part of our ESG commitments under
our exploration program. This is especially important for women
and children in the community who will be freed up from
pumping water and provide them with more time for education
and other positive activities.
Invictus Energy is the only oil and gas operator in country at
present, thus is in a unique position to leverage its basin master
position in the Cabora Bassa Basin.
03
INVICTUS ENERGY LIMITED2021 ANNUAL REPORT
Shareholder
Address
Growth is our focus
Relationships and Values
Reported discoveries in similar aged basins in nearby Namibia
and South Africa have again highlighted the possible potential
in these Karoo aged plays.
Invictus Energy continues to actively screen the market for value
accretive assets that offer a chance to broaden its risk profile
and reduce the effect to external influences by introducing
cash flow from production or low risk, near term development
opportunities. In particular, Invictus Energy aims to leverage its
sub Saharan knowledge of the wider East African Rift System and
Karoo aged rifts in which we have built a significant knowledge
base and competitive advantage. Despite many positive
conversations restrictions from COVID-19 pandemic made full
negotiations challenging. Looking ahead we see the global
situation improving we see those negotiations continuing with
face-to-face discussions.
Capital Discipline
We strongly apply capital discipline to all aspects of our business.
Invictus has operated safely and managed costs and expenditure
over the past year, particularly during the tumultuous first part
of the year when the pandemic was at its peak. Throughout
the recent challenges to the business environment, we have
used our in-house team to maintain a firm hand on costs whilst
expediting quality work and delivery. We responded rapidly
to COVID-19 by reducing our cost base. 2020/21 has been
a transformational year for Invictus. Product prices are now
recovering in a post pandemic world both in oil and gas and
our share value has increased over 486% in the past year,
a testament to our achievements to date.
The Company completed a heavily oversubscribed capital raise
of $8 million by way of a private placement to sophisticated
and institutional investors in March 2021 which was lead by
PAC Partners. The capital raise was supported by a number of
existing shareholders as well as new investors which has put the
Company in a strong position to self-fund the work program this
year which will create additional shareholder value.
Invictus Energy has built a reputation for attracting quality
industry partners such as Sable Chemicals and Tatanga Energy.
Both MOU’s represent fewer than 15% of the likely gas volumes
in the Invictus Energy acreage but demonstrate that there is a
clear market for companies like Invictus Energy with less carbon
intensive sources like gas and supportive ESG credentials.
Mr Eric de Mori retired from the board aafter 3 years of service
following the AGM in November 2020. Eric had made a
significant contribution to Invictus including managing the
acquisition in 2018 and the Company wishes Mr de Mori all the
very best with his other business interests.
Eric was replaced by the appointment of respected Zimbabwean
businessperson Mr Joe Mutizwa as a Non-Executive Director
and Deputy Chairman of the Company. Joe as Chairman of
Mangwana Capital, is a major shareholder of the Company and
is a director of the Company’s 100% owned local subsidiary
Invictus Energy Resources Zimbabwe Pty Ltd. Joe has been able
to represent the company’s interests in country and support
on-going engagements with in-country stakeholders and we are
delighted to have someone of Joe’s calibre join the Board.
Lastly, we record our appreciation to all of our team and to
our partner One-Gas Resources for their resilience during very
challenging times and for their work and support which has
enabled us to advance the project. We would also like to thank
all our stakeholders and shareholders for their continued support
as we strive towards delivering transformational value in what
will be an exciting period ahead for the Company as we move
towards a basin opening drilling campaign over the next year.
Dr Stuart Lake
NON-EXEC CHAIRMAN
Scott Macmillan
MANAGING DIRECTOR
04
INVICTUS ENERGY LIMITED2021 ANNUAL REPORT
Directors’
Report
Your Directors’ present their report together with the financial statements on Invictus Energy Limited
(the ‘Company’) and the entities it controlled (the “consolidated entity”) for the year ended 30 June 2021.
Review of Operations
During the year the Company undertook the following activities:
•
•
•
•
•
•
•
•
•
•
The Environmental Impact Assessment was approved
The Zimbabwe Investment Licence was renewed for a further 5 years
Completed a placement to the Mangwana Opportunity Fund via the issue of 12,564,143 ordinary shares at a price of $0.035 per share
raising gross proceeds of approximately $A0.44M
Field operations and a Seismic programme commenced in Cabora Bassa Basin
The Petroleum Exploration Development and Production Agreement review was completed
Field Operations Commenced in Cabora Bassa Basin and Additional Seal Potential was identified
The Petroleum Exploration Development and Production Agreement was signed with the Republic of Zimbabwe providing the
licence holder with the right to enter into a 25 year production licence following exploration periods
Completed a second placement to the Mangwana Opportunity Fund via the issue of 3,404,186 ordinary shares at a price of $0.066
per share raising gross proceeds of approximately $A0.22M
Completed a placement to sophisticated and institutional investors via the issue of 72,727,273 ordinary shares at a price of $0.11
per share raising gross proceeds of approximately $A8M
Commenced planning for an in-country seismic acquisition campaign including the ordering of long lead drilling items for
Mzarabani-1 exploration well, awarding of the seismic contract to Polaris to conduct 2D survey in Cabora Bassa Basin and appointing
Aztech Well Construction as the Drilling Project Manager
• Mr Joespeh Mutizwa was appointed as a Non-Executive Director and Deputy Chairman of Invictus
•
The SG 4571 tenure renewal was formally Gazetted for a further 3 years to June 2024
1. Directors and Company Secretary
The Directors and the company secretary of the Company at any time during or since the end of the financial year are as follows.
Dr Lake has over 35 years of global experience in the Petroleum industry and significant expertise, having
operated assets in 20 countries worldwide, including in over ten African countries. He brings a combination
of in-depth technical knowledge and a world class track record as an oil and gas finder, having led many
teams in maintaining a 90% exploration success rate (from over 300 wells in 11 countries including
deep-water and new plays) throughout his career. Dr Lake has held a wide variety of roles in international
Oil and Gas companies including:
- President and CEO for Castle Petroleum working onshore conventional assets in the USA in Louisiana
and Texas.
- Former CEO of AGM Petroleum, the operator of the offshore South Deepwater Tano Block in Ghana, he
brought in Petrica Energy as the new main shareholder and acquired over 2000km2 3D seismic, leading
to a recently reported new oil discovery from the Exploration drill campaign. As a Senior Advisor to Aker
Energy, that recently acquired Hess Ghana assets, in which Dr Lake and his team at Hess Corporation had
made 7 consecutive deepwater discoveries. He stepped down from the role in April 2020.
- He was also the former CEO of African Petroleum Corporation Ltd, where he successfully concluded a
number of farmouts and commercial deals for their West African portfolio in a challenging market and
successfully listed the company on the Oslo Bors in Norway, transferring the company from the NSX.
- Vice President of Exploration in the Hess Corporation, leading highly successful Exploration campaigns,
including Ghana, Libya and 30 onshore discoveries in Russia.
- Dr Lake also worked for Apache Corporation for 4 years and held a wide variety of roles in Shell for over
19 years including Exploration Manager Africa and Middle East and VP Exploration Russia.
Former directorships held in the last 3 years: Tamboran Resources Pty Ltd, AGM Petroleum, Castle Petroleum.
Directors
Dr Stuart Lake
Non-executive Chairman
(APPOINTED 1 AUGUST 2019)
05
INVICTUS ENERGY LIMITED2021 ANNUAL REPORT
Directors’
Report
1. Directors and Company Secretary - CONTINUED
Directors - CONTINUED
Mr Joe Mutizwa
Non-executive Director
and Deputy Chairman
(APPOINTED 19 MAY 2021)
Mr Mutizwa is the current chairman of Mangwana Capital, a major shareholder of the Company and is a
director of the Company’s 100% owned local subsidiary Invictus Energy Resources Zimbabwe Pty Ltd.
Joe served for ten years as Chief Executive of Delta Corporation, one of Zimbabwe`s largest listed companies
before taking early retirement in 2012. He currently sits on the Presidential Advisory Council (PAC), a body
appointed by Zimbabwe’s President, His Excellency CDE E.D Mnangagwa, and is comprised of experts and
leaders drawn from diverse sectors to advise and assist the President in formulating key economic policies
and strategies in the country. Joe served on the board of the Reserve Bank of Zimbabwe (2015-2019) and
currently chairs the boards of the of Star Africa Corporation Zimbabwe (ZSE: SACL), a local sugar refiner;
as well as the board of the Infrastructure Development Bank of Zimbabwe (IDBZ). Joe has a BSc degree
(with first class honours) from The London School of Economics; an MBA from the University of Zimbabwe
and an MSc from HEC – Paris and Oxford University.
Mr Mutizwa has not held any other directorships in the past 3 years.
Mr Scott Macmillan
Managing Director
(APPOINTED 21 JUNE 2018)
Mr Macmillan is a Reservoir Engineer and founder of Invictus Energy Resources Pty Ltd. He has a Bachelor of
Chemical Engineering and an MSc in Petroleum Engineering from Curtin University. He is a member of the
Society of Petroleum Engineers (SPE) and has over 13 years experience in exploration, field development
planning, reserves and resources assessment, reservoir simulation, commercial valuations and business
development. He also has extensive business experience in Zimbabwe.
Mr Macmillan has not held any other directorships in the past 3 years.
Mr Barnaby Egerton-
Warburton
Non-executive Director
(APPOINTED 29 JULY 2016)
Mr Egerton-Warburton holds a Bachelor of Economics Degree and is a graduate of the Australian Institute
of Company Directors and a member of the American Association of Petroleum Geologists. He has over
20 years of trading, investment banking, international investment and market experience. He has held
positions with global investment banks in Hong Kong, New York and Sydney including JP Morgan,
Banque Nationale de Paris and Prudential Securities.
Mr Gabriel Chiappini
Non-executive Director
(APPOINTED 6 AUGUST 2015)
Mr Egerton-Warburton is an experienced company Director and is currently also the Managing Director of
Eneabba Gas Limited (ASX:ENB), Non-Executive Director of iSignthis Limited (ASX:ISX), Non-Executive Chairman
of Hawkstone Mining Limited (ASX:HWK) and Non-Executive Chairman of Pantera Minerals Ltd (ASX:PFE).
Former directorships held in the last 3 years: Global Geoscience (ASX: GSC).
Mr Chiappini is a Chartered Accountant with over 20 years of experience as a finance and governance
professional and is an experienced ASX director and has been active in the capital markets for 17 years.
He has assisted in raising AUD$450m and has provided investment and divestment guidance to a number
of companies and has been involved with a number ASX IPO’s and transactions in the last 12 years.
He is a current member of the Australian Institute of Company Directors and Institute of Chartered
Accountants (Australia).
Mr Chiappini is currently a Director of Black Rock Mining (ASX:BKT) and Gefen International A.I. Ltd (ASX:GFN).
Former directorships held in the last 3 years: FBR Ltd (ASX:FBR), Global Geoscience Ltd (ASX:GSC) and
Scotgold Resources Ltd (ASX:SGZ) and Eneabba Gas Ltd (ASX:ENB).
Mr Eric de Mori
Non-Executive Director
(APPOINTED 11 DECEMBER 2017,
RESIGNED 27 NOVEMBER 2020)
Mr de Mori has over 15 years’ experience in ASX small capital investment and corporate finance, specialising
in natural resources, biotechnology and technology. Eric has a broad skill set across ASX listed company
corporate finance and has held several director and major shareholder positions with ASX listed technology
and resource companies. Eric is the head of natural resources for institutional stockbroker Ashanti Capital.
Former directorships held in the last 3 years: Adriatic Metals plc (ASX:ADT)
Company Secretary
Mr Gabriel Chiappini – refer to director details for information on Mr Chiappini.
06
INVICTUS ENERGY LIMITED2021 ANNUAL REPORT
1. Directors and Company Secretary - CONTINUED
1.1
Directors’ Meetings
The number of Directors’ meetings and number of meetings attended by each of the Directors of the Company during the financial
year were:
DIRECTOR
Stuart Lake
Joe Mutizwa 1
Scott Macmillan
Barnaby Egerton-Warburton
Gabriel Chiappini
Eric de Mori 2
1 Mr Mutizwa was appointed 19 May 2021
2 Mr de Mori resigned 27 November 2020
BOARD OF DIRECTORS MEETINGS
ELIGIBLE TO
ATTEND
ATTENDED
6
-
6
6
6
4
6
-
6
6
6
3
During the reporting period, the Directors also met or communicated as a collective group at least bi-weekly on numerous occasions to
discuss and consider governance and operational strategies and resolutions.
2.2
Corporate Governance
In recognising the need for the highest standards of corporate behaviour and accountability, the Directors of Invictus Energy Limited
support and have adhered to the principles of sound corporate governance. The board recognises the recommendations of the Australian
Securities Exchange Corporate Governance Council and considers that the Company is in compliance with those guidelines which are of
importance to the commercial operation of a junior listed resource company. The Company’s Corporate Governance Statement has been
approved by the Board and can be located on the Company’s website at www.invictusenergy.com.
07
INVICTUS ENERGY LIMITED2021 ANNUAL REPORT Directors’
Report
2. REMUNERATION REPORT (Audited)
This Remuneration Report outlines the remuneration arrangements which were in place during the year and remain in place as at the
date of this report, for the Directors and key management personnel of the Company. The 2020 remuneration report received positive
shareholder support at the Annual General Meeting with a vote, by way of a poll, of 94.9% in favour.
(a)
Key management personnel
Directors of the Company, who had authority and responsibility during the financial year for planning, directing and controlling the
activities of the Group, directly or indirectly, as well as other senior executives are the key management personnel disclosed in this report.
NAME
POSITION
Stuart Lake
Joe Mutizwa1
Scott Macmillan
Non-Executive Chairman
Non-Executive Director & Deputy Chairman
Managing Director
Barnaby Egerton-Warburton
Non-Executive Director
Gabriel Chiappini
Eric de Mori2
Non-Executive Director & Company Secretary
Non-Executive Director
1 Mr Mutizwa was appointed 19 May 2021
2 Mr de Mori resigned 27 November 2020
(b)
Non-Executive Director remuneration policy
Fees and payments to non-executive Directors reflect the demands which are made on, and the responsibilities of, the directors.
Non-executive Directors’ fees and payments are reviewed annually by the board.
The base remuneration of Non-executive Directors is set at A$60,000 per annum.
Non-executive Directors’ fees are determined within an aggregate Directors’ fee pool limit, which is periodically recommended for
approval by shareholders. The maximum currently stands at A$300,000 per annum and was approved by shareholders at the general
meeting on 12 October 2011.
(c)
Executive remuneration policy and framework
In determining executive remuneration, the board aims to ensure that remuneration practices are:
•
•
•
•
competitive and reasonable, enabling the Company to attract and retain key talent;
aligned to the Company’s strategic and business objectives and the creation of shareholder value;
transparent; and
acceptable to shareholders.
The executive remuneration framework has two components:
•
•
base pay and benefits, including superannuation; and
long-term incentives through the issue of options and performance shares.
Base pay and benefits
Base pay is structured as a total employment cost package which may be delivered as a combination of cash and prescribed non-financial
benefits at the board’s discretion.
Executives are offered a competitive base pay that comprises the fixed component of pay and rewards. Base pay for executives is reviewed
annually to ensure the executive’s pay is competitive with the market.
There are no guaranteed base pay increases included in executives’ contracts. There are no short-term cash bonuses included in the
figures contained in the Remuneration Report.
Superannuation
Retirement benefits are limited to superannuation contributions as required under the Australian superannuation guarantee legislation.
Long-term incentives
Long-term incentives are provided to Directors and executives as incentives to deliver long-term shareholder returns. Some of the issued
options and performance shares are granted only if certain performance conditions are met and the Directors and executives are still
employed by the Company at the end of the vesting period.
Share trading policy
The Company has a share trading policy in place. The Board of Directors ratified and approved the share trading policy previously adopted
without change, on 15 September 2019.
08
INVICTUS ENERGY LIMITED2021 ANNUAL REPORT 2. REMUNERATION REPORT (Audited) - CONTINUED
(d)
Link of remuneration to Company performance and shareholders’ wealth
The remuneration policy has been tailored to increase goal congruence between shareholders and Directors and executives. Currently,
this is facilitated through the issue of options and performance shares to Directors and executives to encourage the alignment of personal
and shareholder interests. There are currently various financial and other targets set for the performance related remuneration, and
therefore, remuneration is linked to Company performance or shareholder wealth.
In considering the Group’s performance and benefits for shareholder wealth, the Board have regard to the following indices in respect of
the current financial year and the previous four (4) financial years:
ITEM
EPS loss – continuing operations (cents)
Net loss – continuing operations (’000)
Share price
2021
(0.25)
2020
(0.41)
2019
(0.28)
2018
(0.67)
($1,255,646)
($1,773,456)
($1,022,049)
($917,593)
$0.170
$0.026
$0.046
$0.047
(e)
Use of remuneration consultants
The Company did not use the services of remuneration consultants for designing the remuneration policies for Directors or key
management personnel.
(f)
Service agreements
The Company has service contracts in place with the following four board members during the year. Details of the service agreements
are listed below.
Dr Stuart Lake - Non-Executive Chairman
-
- Director fee: GBP 50,000 per annum
Commencement date: 1 August 2019
The agreement is not subject to any termination notice period
Commencement date: 19 May 2021
Dr Joe Mutizwa - Non-Executive Director and Deputy Chairman
-
- Director fee: $60,000 per annum
-
The agreement is not subject to any termination notice period
The agreement is not subject to any termination notice period
Mr Scott Macmillan – Managing Director
Commencement date: 15 June 2018
-
-
Base salary is $250,000 per annum plus 9.5% superannuation guarantee contribution
- No fixed term
-
-
-
The agreement is subject to a three months’ notice period by either party
The Company may, from time to time, offer the Managing Director the right to participate in an employee incentive plan and may
be granted performance shares or other incentives on terms and performance criteria to be determined by the Board in its absolute
discretion
It is noted that the following additional terms apply to Mr Scott Macmillan, which have been agreed as part of Mr Macmillan’s
remuneration package:
•
in the event all of the Milestones in respect of the Class A Performance Rights1 are satisfied, Mr Macmillan will be entitled to
receive a cash payment of $75,000; and
in the event all of the Milestones in respect of the Class B Performance Rights1 are satisfied, Mr Macmillan will be entitled to
receive a cash payment of $75,000.
In addition, Mr Macmillan will receive 10% of the total costs reimbursed to Invictus for sunk and historical costs, by a Reputable
Partner, in connection with a Binding Farm-in Agreement or Non-Binding Farm-in Agreement (as those terms are defined below)
up to a maximum of $250,000.
•
•
1
Refer to section (i) Share-based compensation for details of the Class A and B performance rights
Commencement date: 28 July 2017
Mr Barnaby Egerton Warburton - Non-Executive Director
-
- Director fee: $54,795 per annum plus 9.5% superannuation guarantee contribution
- No fixed term
-
The agreement is not subject to any termination notice period
09
INVICTUS ENERGY LIMITED2021 ANNUAL REPORT Directors’
Report
2. REMUNERATION REPORT (Audited) - CONTINUED
(f)
Service agreements - CONTINUED
Mr Gabriel Chiappini – Non-executive Director & Company Secretary
-
-
-
Commencement date: 6 August 2015
The combined Non-executive Director & Company Secretary fee is $60,000 per annum.
The agreement is not subject to any termination notice period
Commencement date: 11 December 2017
Mr Eric de Mori - Non-Executive Director
-
- Director fee: $54,795 per annum plus 9.5% superannuation guarantee contribution
-
The agreement is not subject to any termination notice period
No other key management personnel have service contracts in place with the consolidated entity.
(g)
Details of remuneration
The following tables set out remuneration paid to key management personnel of the Company during the current year:
2021
SHORT TERM
POST
EMPLOYMENT
SHARE-BASED PAYMENTS
PROPORTION OF
REMUNERATION
2
S
E
E
F
D
N
A
Y
R
A
L
A
S
H
S
A
C
$
Stuart Lake
Joe Mutizwa 3
67,712
6,904
1
R
E
H
T
O
-
-
-
R
E
P
U
S
N
O
I
T
A
U
N
N
A
$
-
-
Scott Macmillan
250,000
5,703
25,234
Barnaby Egerton-
Warburton
Eric de Mori 4
Gabriel Chiappini
41,096
22,368
45,000
-
-
-
5,206
2,215
-
Total
433,080
5,703
32,655
5
S
E
R
A
H
S
$
18,514
-
-
11,278
-
12,350
42,142
S
E
R
A
H
S
E
C
N
A
M
R
O
F
R
E
P
$
-
-
-
-
-
-
-
S
N
O
I
T
P
O
$
L
A
T
O
T
D
E
X
I
F
$
%
11,254
97,480
-
-
-
-
-
6,904
280,937
57,580
24,583
57,350
11,254
524,834
100%
100%
100%
100%
100%
100%
100%
D
E
K
N
I
L
E
C
N
A
M
R
O
F
R
E
P
%
-
-
-
-
-
-
-
Note 1: Annual leave expense
Note 2: As a means of conserving cash, Stuart Lake, Scott Macmillan, Barnaby Egerton-Warburton, Eric de Mori and Gabriel Chiappini agreed to waive their right to cash for a
portion of their Director fees, which has accrued between April 2020 and September 2020, in substitution for ordinary shares. Resolutions were approved by shareholders
at the Annual General Meeting of the Company held on 27th November 2020 to issue shares in lieu of services to the director’s for this period. The director’s collectively
waived $94,506 in net director fees to receive 2,808,212 ordinary shares in the Company. These shares were later issued on 31 December 2020, at which point the fair
value of the shares issued totalled $151,643 (closing share price was $0.054). The settlement of this liability by the issue of shares has resulted in a net loss for accounting
purposes, due to the difference between the carrying value of the liability and the fair value at the date of issue, resulting in a net loss of $57,137 being recognised in the
P&L at 30 June 2021.
Note 3: Mr Mutizwa was appointed 19 May 2021
Note 4: Mr de Mori resigned 27 November 2020
Note 5: At the Annual General Meeting (“AGM”) of the Company held on 27th November 2020, resolutions were passed by shareholders approving the settlement of a portion
of the director’s fees for the period October 2020 to September 2021 to be settled in shares. The number of shares to be issued to each director was calculated using a 10%
discount on the VWAP. On the 29th June 2021, a total of 714,272 ordinary shares were issued to Stuart Lake, Barnaby Egerton-Warburton and Gabriel Chiappini,
fair valued at the share price on grant date (AGM) being $0.059.
No short-term cash bonuses included as paid or accrued for during the year ended 30 June 2021.
10
INVICTUS ENERGY LIMITED2021 ANNUAL REPORT
2. REMUNERATION REPORT (Audited) - CONTINUED
(g)
Details of remuneration - CONTINUED
The following tables set out remuneration paid to key management personnel of the Company during the previous year:
2020
SHORT TERM
POST
EMPLOYMENT
SHARE-BASED PAYMENTS
PROPORTION OF
REMUNERATION
R
E
H
T
O
S
E
E
F
D
N
A
Y
R
A
L
A
S
H
S
A
C
$
86,887
81,668 1
-
R
E
P
U
S
I
N
O
T
A
U
N
N
A
$
-
250,000
23,764 2
23,750
54,795
54,795
60,000
5,205
5,205
-
S
E
R
A
H
S
$
19,000
-
-
-
-
506,477
105,432
34,160
19,000
S
E
R
A
H
S
E
C
N
A
M
R
O
F
R
E
P
$
-
-
-
-
-
-
S
N
O
T
P
O
I
$
121,247
-
-
-
-
L
A
T
O
T
$
308,802
297,514
60,000
60,000
60,000
121,247
786,316
D
E
X
F
I
%
100%
100%
100%
100%
100%
100%
D
E
K
N
I
L
E
C
N
A
M
R
O
F
R
E
P
%
-
-
-
-
-
-
Stuart Lake
Scott Macmillan
Barnaby Egerton-
Warburton
Eric de Mori
Gabriel Chiappini
Total
Note 1: Out of scope consultancy fees
Note 2: Annual leave expense
No short-term cash bonuses included as paid or accrued for during the year ended 30 June 2020.
(h)
Amounts owing to KMP
In light of the global market and oil industry environment, the Board and Management agreed to defer their annual fees and
remuneration by 25-50 percent effective 1 April 2020 up to an including 31 March 2021. All outstanding amounts were settled either via
cash of shares prior to 30 June 2021.
Stuart Lake
Joe Mutizwa1
Scott Macmillan
Barnaby Egerton-Warburton
Eric de Mori2
Gabriel Chiappini
Total
1 Mr Mutizwa was appointed 19 May 2021
2 Mr de Mori resigned 27 November 2020
There are no loans to Key Management Personnel (2020: nil).
30 JUNE 2021
$
30 JUNE 2020
$
-
-
-
-
-
-
-
37,201
-
17,110
6,250
6,250
7,500
74,311
11
INVICTUS ENERGY LIMITED2021 ANNUAL REPORT
Directors’
Report
2. REMUNERATION REPORT (Audited) - CONTINUED
(i)
Share-based compensation
Options
No options for employee share- based payments were issued during the current year.
During the 2020 year 9,000,000 options were issued to Dr Stuart Lake, on the following terms and conditions:
-
-
-
3,000,000 Options, $0.06 exercise, expire 31 July 2022
3,000,000 Options, $0.09 exercise, expire 31 July 2022
3,000,000 Options, $0.12 exercise, expire 31 July 2022
- All options will vest after 12 months subject to continuation as Chairman
Performance rights
During the June 2021 financial year, the following performance rights were issued (2020: $nil):
Scott Macmillan
Stuart Lake
The performance rights were subject to the following conditions:
PERFORMANCE
RIGHTS
PROJECT
MILESTONE
Class A
(a) The Company announcing the execution of the Non-Binding Farm-in
Agreement on or before 31 December 2020; and
(b) the Binding Farm-in Agreement, having been executed, becomes
unconditional on or before 30 June 2021.
Class B
The Company achieving the grant of the Extension Application on or before
31 December 2020.
CLASS A
CLASS B
TOTAL
3,400,000
2,500,000
3,400,000
2,500,000
6,800,000
5,000,000
SHARE PRICE
MILESTONE
The Company achieving a VWAP
of at least $0.045 over any twenty
consecutive trading day period
before 31 December 2020.
The Company achieving a VWAP
of at least $0.045 over any twenty
consecutive trading day period
before 31 December 2020
As the milestones for class A and B were not achieved within the specified time frame, the underlying performance rights lapsed and were
cancelled. As such, no performance right expense was recognised in the statement of financial performance during the financial year.
Performance shares
No performance shares for employee share- based payments were issued during the current year (2020: $nil).
Ordinary shares
During the 2021 year, 3,242,650 shares were issued to KMP’s at an average share price of. $0.0482 per share in lieu of cash for
services rendered.
During the 2020 year 500,000 ordinary shares were issued at a price of $0.038 per share to Dr Stuart Lake. The shares have an escrow
period of 12 months and were subject to Dr Lake purchasing the same number of ordinary shares in the Company on market within
the 1st month of his appointment.
12
INVICTUS ENERGY LIMITED2021 ANNUAL REPORT 2. REMUNERATION REPORT (Audited) - CONTINUED
(j)
Equity instruments held by key management personnel
(i) Option holdings
The following table shows options held by key management personnel during the financial year.
2021
Stuart Lake
Joe Mutizwa 1
Scott Macmillan
R
A
E
Y
T
A
E
C
N
A
L
A
B
E
H
T
F
O
T
R
A
T
S
9,000,000
-
-
Barnaby Egerton-Warburton 8,000,000
Eric de Mori
Gabriel Chiappini
8,000,000
4,000,000
D
E
T
N
A
R
G
-
-
-
-
-
-
D
E
S
P
A
L
/
D
E
S
I
C
R
E
X
E
-
-
-
(8,000,000)
R
E
H
T
O
-
-
-
-
-
(8,000,000)2
(4,000,000)
-
R
A
E
Y
E
H
T
T
A
E
C
N
A
L
A
B
F
O
D
N
E
E
H
T
R
A
E
Y
D
E
T
S
E
V
E
H
T
G
N
R
U
D
I
D
N
A
D
E
T
S
E
V
E
L
B
A
S
I
C
R
E
X
E
9,000,000
9,000,000
9,000,000
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
D
E
T
S
E
V
N
U
-
-
-
-
-
-
1 Mr Mutizwa was appointed 19 May 2021
2
These were the options Mr de Mori held at the date of his resignation being 27 November 2020
(ii) Performance rights holdings
The following table shows performance shares held by key management personnel during the financial year.
2021
Stuart Lake
Scott Macmillan
BALANCE
AT START OF
THE YEAR
GRANTED
EXERCISED/
LAPSED 1
BALANCE
AT THE END OF
THE YEAR
-
-
5,000,000
(5,000,000)
6,800,000
(6,800,000)
-
-
1
As the milestones for class A and B were not achieved within the specified time frame, the underlying performance rights lapsed and were cancelled.
As such, no performance right expense was recognised in the statement of financial performance during the financial year.
No other director holds performance rights.
(iii) Performance share holdings
The following table shows performance shares held by key management personnel during the financial year.
2021
BALANCE
AT START OF
THE YEAR
GRANTED
EXERCISED/
LAPSED
BALANCE
AT THE END OF
THE YEAR
Scott Macmillan
38,970,317
-
-
38,970,317
No other director holds performance shares.
(iv) Share holdings
The following table shows ordinary shares held by key management personnel during the current year.
BALANCE
AT START OF
THE YEAR
RECEIVED ON
EXERCISE OF
OPTIONS DURING
THE YEAR
RECEIVED ON
VESTING OF
PERFORMANCE
SHARES DURING
THE YEAR
ISSUED IN LIEU OF
CASH PAYMENTS
DURING THE
YEAR
OTHER
CHANGES
BALANCE
AT THE END OF
THE YEAR
1,000,000
-
-
-
-
Scott Macmillan
72,575,133
Barnaby Egerton-
Warburton
Eric de Mori
Gabriel Chiappini
9,271,454
8,510,000
4,047,154
8,000,000
-
4,000,000
-
-
-
-
-
-
1,259,732
-
696,414
-
-
-
2,259,732
-
73,271,547
470,996
(2,958,121)
14,784,329
-
(8,510,000) 2
-
815,508
-
8,862,662
2021
Directors
Stuart Lake
Joe Mutizwa 1
1 Mr Mutizwa was appointed 19 May 2021
2
These were the shares Mr de Mori held at the date of his resignation being 27 November 2020
13
INVICTUS ENERGY LIMITED2021 ANNUAL REPORT
Directors’
Report
2. REMUNERATION REPORT (Audited) - CONTINUED
(k) Other transactions with key management personnel
During the year the Company paid in cash and shares $57,350 to Laurus Corporate Services Pty Ltd, an entity related to Mr Gabriel
Chiappini, for the provision of non- executive director and company secretarial services, on normal commercial terms and conditions and
at market rates (2020: $60,000).
On 15 February 2019 the Company entered into an arrangement with Laurus Corporate Services Pty Ltd, an entity related to which
Mr Gabriel Chiappini, whereby Laurus Corporate Services Pty Ltd rents one office and one car bay at a cost of $1,950 plus GST from the
Company per calendar month. The arrangement is for no fixed term and can be cancelled by either party by providing one months notice.
On 15 February 2019 the Company entered into an arrangement with Eneabba Gas Ltd, an entity related to Mr Gabriel Chiappini
(resigned 28 April 2021) and Mr Barnaby Egerton- Warburton, for the provision of one office and one car bay at a cost of $1,950 plus GST
per calendar month. The arrangement is for no fixed term and can be cancelled by either party by providing one months notice.
During the financial year the Company entered into an arrangement with Pantera Minerals Ltd, an entity related to Mr Barnaby
Egerton- Warburton, for the provision of 3 offices and one car bay at a cost of $7,150 plus GST per calendar month. The arrangement
is for no fixed term and can be cancelled by either party by providing one months notice.
During the financial year the Company entered into an arrangement with BXW Pty Ltd, an entity related to Mr Barnaby Egerton- Warburton,
for the provision of one car bay at a cost of $450 plus GST per calendar month. The arrangement is for no fixed term and can be cancelled
by either party by providing one months notice.
There were no other transactions with related parties during the current year.
All transactions were made on normal commercial terms and conditions and at market rates. There were no other transactions with
related parties during the current year.
End of Audited Remuneration Report.
3. Principal Activities
The principal activities of the consolidated entity carried out during the financial year consisted of the exploration and appraisal of the
Cabora Bassa Project.
4. Results and Dividends
The consolidated entity’s loss after tax from continuing operations attributable to members of the consolidated entity for the financial year
ending 30 June 2021 was $1,255,646 (2020: $1,773,456 loss).
No dividends have been paid or declared by the Company during the year ended 30 June 2021 (2020: nil).
5. Loss per Share
The basic loss per share for the consolidated entity for the year was 0.25 cents per share (2020: 0.41 cents per share).
6. Significant Changes in the State of Affairs
There have not been any significant changes in the State of Affairs of the Company. Invictus Energy remains focused on advancing its
80% owned Cabora Bassa Project in Zimbabwe.
7. Events Subsequent to Reporting Date
On 5 July 2021 the Company announced the lapse of conditional rights to 11,800,000 performance shares because the conditions had
not been met.
On 2 August 2021 the Company announced that it had changed its registered office to Level 1, 10 Outram Street, West Perth,
Western Australia, 6005.
Other than the above, no matters or circumstances have arisen since the end of the financial year which have significantly affected or may
significantly affect the operations, results or state of affairs of the Group in future financial years.
14
INVICTUS ENERGY LIMITED2021 ANNUAL REPORT 8. Likely Developments and Expected Results of Operations
The Company intends to develop its Cabora Bassa Basin Gas Condensate project in Zimbabwe by attracting a senior farm-in partner.
Following securing of a farm-in partner, the Company anticipates the joint venture partners to commit to an exploration well on its
lead prospect.
9. Environmental Regulations
The company is not subject to the reporting requirements of either the Energy Efficiency Opportunities Act 2006 or the National
Greenhouse and Energy Reporting Act 2007. When operations commence in Zimbabwe, the Company will be subject to meeting the
environmental laws and regulations.
10. Directors’ and Executives’ Interests
As at the date of this report, the interests of the Directors and executives in the shares, options and performance shares of the
Company were:
Stuart Lake
Joe Mutizwa
Scott Macmillan
Barnaby Egerton-Warburton
Gabriel Chiappini
Total
SHARES
PERFORMANCE
SHARES
OPTIONS
2,259,732
-
-
-
73,271,547
38,970,317
14,784,329
8,862,662
-
-
9,000,000
-
-
-
-
99,178,270
38,970,317
9,000,000
11. Equity Instruments on Issue
Ordinary shares
As at the date of this report, there were 585,077,387 listed ordinary shares on issue.
Unlisted options
As at the date of this report, the following unlisted options over ordinary shares on issue is as follows:
EXPIRY
31 July 2022
31 July 2022
31 July 2022
30-Mar-2024
Performance shares
EXERCISE
$0.06
$0.09
$0.12
$0.17
NUMBER
3,000,000
3,000,000
3,000,000
36,363,636
As at the date of this report, there the following unlisted performance shares over ordinary shares on issue is as follows:
NUMBER
ISSUE DATE
EXPIRY DATE
VESTING CONDITION
44,179,281
22-Jun-2018
20-Dec-21
Drilling of an exploration well upon the Cabora Bassa Project that results in the
maiden booking of Contingent Resources or Reserves (as those terms are defined
in the Guidelines for Application of the Petroleum Resources Management
System (2011 Edition).
15
INVICTUS ENERGY LIMITED2021 ANNUAL REPORT Directors’
Report
12. Indemnification and Insurance of Officers and Auditors
Indemnification
An indemnity agreement has been entered into with each of the Directors, chief financial officer and company secretary of the Company
named earlier in this report. Under the agreement, the Company has agreed to indemnify those officers against any claim or for any
expenses or costs which may arise as a result of work performed in their respective capacities to the extent permitted by law. There is no
monetary limit to the extent of this indemnity.
Insurance
During the financial year the Company has taken out an insurance policy in respect of Directors’ and officers’ liability and legal expenses
for directors and officers.
13. Corporate Structure
Invictus Energy Limited is a Company limited by shares that is incorporated and domiciled in Australia. The Company is listed on the
Australian Securities Exchange under the code “IVZ”.
14. Audit and Non-Audit Services
The Company may decide to employ the auditor on assignments additional to their statutory audit duties where the auditor’s expertise
and the experience with the Company and/or the Group are important.
Details of the amounts paid or payable to the auditor, BDO Audit (WA) Pty Ltd (“BDO”), are set out below.
During the current year, the following fees were paid or payable for audit and non-audit services provided by the auditor of the parent
entity, its related practices and non-related audit firms:
Services provided by the Auditor – BDO Audit (WA) Pty Ltd
Audit and review of financial statements
Tax compliance services
Total services provided by the Auditor
30-JUN-21
A$
30-JUN-20
A$
44,544
-
44,544
41,616
-
41,616
15. Auditor’s Independence Declaration
The lead auditor’s Independence Declaration is set out on page 17 and forms part of the Directors’ report for the financial year ended
30 June 2021.
This report is signed in accordance with a resolution of the board of Directors and is signed on behalf of the Directors by:
Scott Macmillan
MANAGING DIRECTOR
30 September 2021
16
INVICTUS ENERGY LIMITED2021 ANNUAL REPORT Auditors Independence
Declaration
Tel: +61 8 6382 4600
Fax: +61 8 6382 4601
www.bdo.com.au
38 Station Street
Subiaco, WA 6008
PO Box 700 West Perth WA 6872
Australia
DECLARATION OF INDEPENDENCE BY JARRAD PRUE TO THE DIRECTORS OF INVICTUS ENERGY
LIMITED
Tel: +61 8 6382 4600
Fax: +61 8 6382 4601
www.bdo.com.au
38 Station Street
Subiaco, WA 6008
PO Box 700 West Perth WA 6872
Australia
As lead auditor of Invictus Energy Limited for the year ended 30 June 2021, I declare that, to the best
of my knowledge and belief, there have been:
DECLARATION OF INDEPENDENCE BY JARRAD PRUE TO THE DIRECTORS OF INVICTUS ENERGY
LIMITED
1. No contraventions of the auditor independence requirements of the Corporations Act 2001 in
relation to the audit; and
2. No contraventions of any applicable code of professional conduct in relation to the audit.
As lead auditor of Invictus Energy Limited for the year ended 30 June 2021, I declare that, to the best
of my knowledge and belief, there have been:
1. No contraventions of the auditor independence requirements of the Corporations Act 2001 in
This declaration is in respect of Invictus Energy Limited and the entities it controlled during the period.
relation to the audit; and
2. No contraventions of any applicable code of professional conduct in relation to the audit.
This declaration is in respect of Invictus Energy Limited and the entities it controlled during the period.
Jarrad Prue
Director
BDO Audit (WA) Pty Ltd
Jarrad Prue
Perth, 30 September 2021
Director
BDO Audit (WA) Pty Ltd
Perth, 30 September 2021
BDO Audit (WA) Pty Ltd ABN 79 112 284 787 is a member of a national association of independent entities which are all members of BDO Australia Ltd ABN 77 050 110 275,
an Australian company limited by guarantee. BDO Audit (WA) Pty Ltd and BDO Australia Ltd are members of BDO International Ltd, a UK company limited by guarantee, and
form part of the international BDO network of independent member firms. Liability limited by a scheme approved under Professional Standards Legislation.
BDO Audit (WA) Pty Ltd ABN 79 112 284 787 is a member of a national association of independent entities which are all members of BDO Australia Ltd ABN 77 050 110 275,
an Australian company limited by guarantee. BDO Audit (WA) Pty Ltd and BDO Australia Ltd are members of BDO International Ltd, a UK company limited by guarantee, and
form part of the international BDO network of independent member firms. Liability limited by a scheme approved under Professional Standards Legislation.
17
INVICTUS ENERGY LIMITED2021 ANNUAL REPORT
FOR THE YEAR ENDED 30 JUNE 2021
Consolidated Statement of Profit or Loss
and Other Comprehensive Income
Continuing operations
Interest revenue
Other revenue
Corporate costs
Professional fees
Directors’ and executives’ fees
Finance costs
Other
Depreciation
Loss on settlement of shares
Foreign currency loss
Loss from continuing operations before income tax
Income tax expense
NOTES
2021
A$
2020
A$
6
6
6
8
927
425,000
(212,802)
(469,283)
(544,851)
(14,492)
(207,220)
(136,140)
(74,608)
(22,177)
(1,255,646)
-
16,037
-
(77,703)
(346,987)
(695,408)
(11,029)
(364,811)
(128,946)
-
(164,609)
(1,773,456)
-
Loss from continuing operations after income tax
(1,255,646)
(1,773,456)
Gain/(loss) for the period attributable to:
Members of the parent entity
Non-controlling interest
Gain/(loss) for the year
Other comprehensive income:
Items that may be reclassified subsequently to profit or loss:
Foreign currency translation – members of parent entity
Foreign currency translation – non-controlling interest
Total other comprehensive gain/(loss) for the year
Total comprehensive gain/(loss) for the year attributable to:
Members of the parent entity
Non-controlling interest
Basic and diluted loss per share (cents)
(1,218,646)
(1,729,212)
(37,000)
(44,244)
(1,255,646)
(1,773,456)
(462,785)
(114,910)
(577,695)
77,065
19,374
96,439
16
9
(1,681,431)
(1,652,147)
(151,910)
(24,870)
(1,833,341)
(1,677,017)
(0.25)
(0.41)
The consolidated statement of profit or loss and other comprehensive income is to be read in conjunction with the accompanying notes.
18
INVICTUS ENERGY LIMITED2021 ANNUAL REPORT AS AT 30 JUNE 2021
Consolidated Statement
of Financial Position
Assets
Current assets
Cash and cash equivalents
Trade and other receivables
Other current assets
Total current assets
Non-current assets
Exploration and evaluation expenditure
Property, plant and equipment
Right of use asset
Other financial assets
Total non-current assets
Total assets
Liabilities
Current liabilities
Trade and other payables
Provisions
Lease liability
Total current liabilities
Non-current liabilities
Lease liability
Total non-current liabilities
Total liabilities
Net assets
Equity
Share capital
Reserves
Accumulated loss
Total equity attributable to owners of Invictus Energy Limited
Non-controlling interest
Total equity
NOTES
2021
A$
2020
A$
10
11
12
13
14
15
16
9,135,271
1,497,014
48,224
52,014
31,786
17,484
9,235,509
1,546,284
8,821,190
168,814
64,489
96,143
9,150,636
18,386,145
291,556
40,873
95,189
427,618
-
-
427,618
8,021,198
82,390
175,041
96,143
8,374,772
9,921,056
339,833
46,576
123,040
509,449
73,701
73,701
583,150
17,958,527
9,337,906
38,354,367
27,911,659
492,458
943,989
(21,926,187)
(20,707,541)
16,920,638
1,037,889
17,958,527
8,148,107
1,189,799
9,337,906
The consolidated statement of financial position is to be read in conjunction with the accompanying notes.
19
INVICTUS ENERGY LIMITED2021 ANNUAL REPORT FOR THE YEAR ENDED 30 JUNE 2021
Consolidated Statement
of Changes in Equity
,
3
1
0
7
4
0
9
,
,
)
6
5
4
3
7
7
1
(
,
9
3
4
6
9
,
,
)
7
1
0
7
7
6
1
(
,
,
0
0
0
0
0
5
1
,
)
0
2
9
4
1
1
(
,
3
8
5
2
4
4
,
7
4
2
0
4
1
,
,
0
1
9
7
6
9
1
,
,
6
0
9
7
3
3
9
,
)
5
9
6
7
7
5
(
,
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20
INVICTUS ENERGY LIMITED2021 ANNUAL REPORT
FOR THE YEAR ENDED 30 JUNE 2021
Consolidated Statement
of Cash Flows
Cash flows from operating activities
Interest received
Lease surrender income
ATO Cashflow boosts
Payments to suppliers and employees
Net cash used in operating activities
Cash flows from investing activities
Exploration and evaluation payments
Payments for property, plant & equipment
Net cash (used in)/from investing activities
Cash flows from financing activities
Proceeds from issue of shares
Lease payment
Share issuance costs
Exercise of options
Proceeds from shares to be issued
Net cash from financing activities
Total cash movement for the year
Cash at the beginning of the year
Effect of exchange rate changes on cash and cash equivalents
Total cash at the end of the year
NOTES
2021
A$
2020
A$
927
325,000
111,891
16,037
-
-
(1,205,494)
(767,676)
(1,624,861)
(1,608,824)
(1,344,905)
-
(1,344,905)
(745,451)
(61,453)
(806,904)
8,224,676
-
(538,696)
2,100,000
-
9,785,980
7,673,399
1,497,014
(35,142)
9,135,271
1,500,000
(112,392)
(114,920)
-
442,583
1,715,271
(700,457)
2,214,264
(16,793)
1,497,014
17
12
14
14
14
14
10
The consolidated statement of cash flows is to be read in conjunction with the accompanying notes.
21
INVICTUS ENERGY LIMITED2021 ANNUAL REPORT
FOR THE YEAR ENDED 30 JUNE 2021
Notes to the
Consolidated Financial Statements
1. Summary of Accounting Policies
A.
Basis of preparation
These general purpose financial statements have been prepared in accordance with Australian Accounting Standards and Interpretations
issued by the Australian Accounting Standards Board (AASB) and the Corporations Act 2001. Invictus Energy Limited (formerly Interpose
Holdings Limited) is a for-profit entity for the purpose of preparing the financial statements.
(i) Compliance with IFRS
The consolidated financial statements of the Invictus Energy Limited (formerly Interpose Holdings Limited) Group also comply with
International Financial Reporting Standards (IFRS) as issued by the International Accounting Standard Board (IASB).
Where necessary, comparatives have been reclassified and repositioned for consistency with the current year disclosures.
The Group has not elected to early adopt any new Standards or Interpretations.
All new and amended accounting standards mandatory as at 1 July 2021 have not had an impact on the financials. Refer to note 2
for further details.
(ii) Going concern
The financial report has been prepared on the going concern basis, which assumes continuity of normal business activities and the
realisation of assets and settlement of liabilities in the ordinary course of business.
The Group has incurred net losses of $1,255,646 (30 June 2020: $1,773,456) and experienced net cash outflows from operating
activities of $767,676 (30 June 2020: $1,608,824) and net cash outflows from investing activities of $1,344,905 (30 June 2020: $806,904)
for the year ended 30 June 2021.
During the financial year the Group deployed its working capital into advancing its Cabora Bassa project located in Zimbabwe.
The Group has also commenced a Seismic programme in country. At the date of this report the Group has a commitment of
US$20,000 that must be paid to maintain tenure over the project area. It is anticipated that any further exploration activities, including
drilling programmes, are to be funded via a joint venture partner investment which would result in the group divesting its ownership
interest in the Caborra Bassa Project. The Directors have prepared a cash flow forecast reflecting the Group’s key objectives, which
indicates the Group does not need to raise additional capital to fund the Company’s stated strategic objectives for at least a period of
12 months from the date of this report.
The cash flow forecast for the period ending 30 September 2022 indicates that the Group is not required to raise additional capital in
order to continue its exploration and evaluation activities in Zimbabwe and to fund working capital. This assumes no slowing down or
deferment of costs.
The Directors believe that the going concern basis of preparation is therefore appropriate.
(iii) Basis of consolidation
The Group financial statements consolidate those of the Parent Company and all of its subsidiaries. The Parent controls a subsidiary if it
is exposed, or has rights, to variable returns from its involvement with the subsidiary and has the ability to affect those returns through
its power over the subsidiary. All subsidiaries have a reporting date of 30 June.
All transactions and balances between Group companies are eliminated on consolidation, including unrealised gains and losses
on transactions between Group companies. Where unrealised losses on intra-group asset sales are reversed on consolidation, the
underlying asset is also tested for impairment from a group perspective. Amounts reported in the financial statements of subsidiaries
have been adjusted where necessary to ensure consistency with the accounting policies adopted by the Group.
Profit or loss and other comprehensive income of subsidiaries acquired or disposed of during the year are recognised from the
effective date of acquisition, or up to the effective date of disposal, as applicable.
B.
Foreign currency translation
(i) Functional and presentation currency
Items included in the financial statements of each of the Group’s entities are measured using the currency of the primary
economic environment in which the entity operates (“functional currency”). The functional currency of Invictus Energy Limited
(formerly Interpose Holdings Limited) is Australian dollars (“A$”).
The consolidated financial statements are presented in Australian dollars, which is the Company’s presentation currency.
(ii) Transactions and balances
Transactions in foreign currencies are translated to the functional currency at the foreign exchange rate ruling at the date of the
transaction. Monetary assets and liabilities denominated in foreign currencies at the reporting date are translated to Australian dollars
at the foreign exchange rate ruling at that date. Foreign exchange differences arising on translation are recognised in the statement of
comprehensive income.
Non-monetary assets and liabilities that are measured in terms of historical cost in a foreign currency are translated using the
exchange rate at the date of the transaction. Non-monetary assets and liabilities denominated in foreign currencies that are stated at
fair value are translated to A$ at foreign exchange rates ruling at the dates the fair value was determined.
22
INVICTUS ENERGY LIMITED2021 ANNUAL REPORT 1. Summary of Accounting Policies - CONTINUED
B.
Foreign currency translation - CONTINUED
(iii) Financial statements of foreign operations
The revenues and expenses of foreign operations, excluding foreign operations in hyperinflationary economies, are translated to
Australian dollars at rates approximating to the foreign exchange rates ruling at the dates of the transactions.
Foreign exchange differences arising on translation are recognised directly in the foreign currency translation reserve (“FCTR”),
as a separate component of equity. When a foreign operation is disposed of, in part or in full, the relevant amount in the FCTR is
transferred to profit or loss, as part of the gain or loss on sale where applicable.
C.
Revenue recognition
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the entity and the revenue can be
reliably measured.
Net financial income
Net financial income comprises interest payable on borrowings calculated using the effective interest method, interest receivable on
funds invested, dividend income and foreign exchange gains and losses.
Interest income is recognised in the profit and loss as it accrues, using the effective interest method.
Management fees are recognised in the profit and loss as the right to a fee accrues, in accordance with contractual rights.
D.
Impairment of assets
The carrying amounts of the Company’s assets are reviewed at each reporting date to determine whether there is any indication of
impairment. If any such indication exists, the assets recoverable amount is estimated. An impairment loss is recognised whenever
the carrying amount of an asset or its cash generating unit exceeds its recoverable amount. Impairment losses are recognised in the
statement of comprehensive income.
The recoverable amount is the greater of the asset’s net selling price and its value in use. In assessing value in use, estimated future cash
flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of
money and the risks specific to the asset. For an asset that does not generate largely independent cash inflows, the recoverable amount is
determined for the cash-generating unit to which the asset belongs.
An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount and it is reversed
only to the extent that the asset’s carrying amount does not exceed the carrying amount that would have been determined, net of
depreciation or amortisation, if no impairment loss has been recognised. The reversal is recognised in the income statement.
E.
Financial instruments
(i) Non-derivative financial instruments
Non-derivative financial instruments are recognised initially at fair value plus, for instruments not at fair value through profit or loss,
any directly attributable transaction costs, except as described below. Subsequent to initial recognition, non-derivative financial
instruments are measured as described below.
A financial instrument is recognised if the Group becomes a party to the contractual provisions of the instrument. Financial assets are
derecognised if the Group’s contractual rights to the cash flows from the financial assets expire or if the Group transfers the financial
asset to another party without retaining control or substantially all risks and rewards of the asset. Purchases and sales of financial
assets are accounted for at trade date, i.e. the date that the Group commits itself to purchase or sell the asset. Financial liabilities are
derecognised if the Group’s obligations specified in the contract expire or are discharged or cancelled.
(ii) Subsequent measurement
Loans and receivables and held-to-maturity investments are carried at amortised cost using the effective interest method.
Details on how the fair value of financial instruments is determined are disclosed in note 3.
(iii) Impairment
The Group assesses at each reporting date whether there is objective evidence that a financial asset or Group of financial assets
is impaired.
23
INVICTUS ENERGY LIMITED2021 ANNUAL REPORT FOR THE YEAR ENDED 30 JUNE 2021
Notes to the
Consolidated Financial Statements
1. Summary of Accounting Policies - CONTINUED
F.
Goods and Services Tax / Value Added Tax
Revenue, expenses and assets are recognised net of the amount of goods and services tax (“GST”) or Value Added Tax (“VAT”), except
where the amount of GST/VAT incurred is not recoverable from the taxation authority. In these circumstances, the GST/VAT is recognised
as part of the cost of acquisition of the asset or as part of the expense.
Receivables and payables are stated with the amount of GST/VAT included. The net amount of GST/VAT recoverable from, or payable to,
the relevant tax authority is included as a current asset or liability in the statement of financial position.
Cash flows are included in the statement of cash flows on a gross basis. The GST/VAT components of cash flows arising from investing and
financing activities which are recoverable from, or payable to, the relevant tax authority are classified as operating cash flows.
G.
Dividends
Dividends are recognised as a liability in the period in which they are declared.
H.
Employee benefits
(i) Short-term employee benefits
Wages, salaries, bonuses and other salary related expenses are recognised as expenses in the year in which the associated services
are rendered by employees of the Company. Short-term accumulating compensated absences such as paid annual leave are
recognised when services rendered by employees, that increase their entitlement to future compensated absences, occur.
Short-term accumulating compensated absences such as sick leave are recognised when absences occur.
(ii) Defined contribution plans
Employee benefits include statutory social insurance payments to the State Social Insurance Scheme. Contributions to this defined
contribution plan are recognised as an expense as incurred.
(iii) Share-based payments
The Company provides benefits to employees (including Directors) of the Company in the form of share-based payment transactions,
whereby employees render services in exchange for shares or options over shares (“equity-settled transactions”).
The fair value of options is recognised as an expense with a corresponding increase in equity (share-based payments reserve).
The fair value is measured at grant date and recognised over the period during which the holder become unconditionally entitled
to the options. Fair value is determined using an appropriate valuation method. In determining fair value, no account is taken of any
performance conditions other than those related to the share price of Invictus Energy Limited (“market conditions”). The cumulative
expense recognised between grant date and vesting date is adjusted to reflect the Directors best estimate of the number of options
that will ultimately vest because of internal conditions of the options, such as the employees having to remain with the Company
until the vesting date, or such that employees are required to meet internal performance targets.
I.
Leases
Leases are recognised as a right-of-use and a corresponding liability at the date at which the leased asset is available for use by the
Company. Each lease payment is allocated between the liability and finance cost. The finance cost is charged to the Consolidated
Statement of Financial Performance over the lease period as to produce a constant periodic rate of interest on the remaining balance
of the liability for each period. The right-of-use asset is amortised over the shorter of the asset’s useful life and the lease term on a
straight-line basis.
Assets and liabilities from a lease are initially measured on a present value basis. The lease liability includes the present value of the fixed
payments (with a 3.25% set increase each year), and variable payments for outgoings (reconciled and adjusted for actual cost each year).
The lease payments are discounted using the Group’s incremental borrowing rate of 10.0%.
The right-of-use asset is measured at cost comprising of the initial measurement of the lease liability.
2. New and Amended Standards not yet Adopted by the Group
The Directors have also reviewed all Standards and Interpretations on issue not yet adopted for the year ended 30 June 2021. As a result
of this review, the directors have determined that there is no material impact of the Standards and Interpretation on issue not yet adopted
on the Group and, therefore, no change is necessary to the Group’s accounting policies
24
INVICTUS ENERGY LIMITED2021 ANNUAL REPORT 3. Financial Risk Management
The Group’s activities expose it to a variety of financial risks: market risk (including currency risk, interest rate risk and price risk), credit risk
and liquidity risk. The Group’s overall risk management program focuses on the unpredictability of financial markets and seeks to minimise
potential adverse effects on the financial performance of the Group. The Group uses different methods to measure different types of risk
to which it is exposed.
Risk management is carried out by the management under policies approved by the board of Directors. Group management identifies,
evaluates and hedges financial risks by holding cash in interest earning deposits.
The Group holds the following financial instruments:
Financial assets
Cash and cash equivalents
Trade and other receivables
Total financial assets
Financial liabilities
Trade and other payables
Lease liability
Total financial liabilities
Net financial instruments
(a) Market risk
Foreign currency risk
2021
A$
2020
A$
9,135,271
1,497,014
48,224
9,183,495
31,786
1,528,800
(291,556)
(95,189)
(386,745)
8,796,750
(339,833)
(196,741)
(536,597)
992,203
Foreign exchange risk arises from future commercial transactions and recognised assets and liabilities denominated in a currency that is
not the entity’s functional currency and net investments in foreign operations. The consolidated entity has the Australian dollar (A$) as its
functional currency, which is also the currency for the Group’s transactions. Some exposure to foreign exchange risk exists in respect to its
Cabora Bassa project which has transactions denominated in US Dollars and Zim Dollars. The risk is measured using sensitivity analysis and
cash flow forecasting.
The Group’s exposure to foreign currency risk at the reporting date, expressed in Australian Dollars, was:
Cash and cash equivalents
Trade and other payables
Total exposure to foreign currency risk
2021
A$
430,642
(702)
429,940
2020
A$
138,564
(23,354)
115,210
25
INVICTUS ENERGY LIMITED2021 ANNUAL REPORT FOR THE YEAR ENDED 30 JUNE 2021
Notes to the
Consolidated Financial Statements
3. Financial Risk Management - CONTINUED
(a) Market risk - CONTINUED
Foreign currency risk - CONTINUED
Group sensitivity to movements in foreign exchange rates is shown in the summarised sensitivity analysis table below:
30-JUN-21
Financial assets
Cash and cash equivalents
Trade and other payables
CARRYING
AMOUNT
A$
FOREIGN EXCHANGE RISK
-10%
PROFIT
A$
EQUITY
A$
10%
PROFIT
A$
EQUITY
A$
430,642
(43,064)
43,064
43,064
(43,064)
(702)
70
(70)
(70)
70
Net exposure to foreign currency risk
429,940
(42,994)
42,994
42,994
(42,994)
30-JUN-20
Financial assets
Cash and cash equivalents
Trade and other payables
Net exposure to foreign currency risk
CARRYING
AMOUNT
A$
138,564
(23,354)
115,210
FOREIGN EXCHANGE RISK
-10%
PROFIT
A$
(13,856)
2,335
(11,521)
EQUITY
A$
13,856
(2,335)
11,521
10%
PROFIT
A$
13,856
(2,335)
11,521
EQUITY
A$
(13,856)
2,335
(11,521)
Foreign exchange volatility was chosen to reflect expected short-term fluctuations in the US Dollar.
(b)
Liquidity risk
Prudent liquidity risk management implies maintaining sufficient cash and marketable securities, the availability of funding through an
adequate amount of committed credit facilities, the ability to meet obligations when due and to close out market positions. Due to the
dynamic nature of the underlying businesses, the management aims at maintaining flexibility in funding by keeping committed credit
lines available with a variety of counterparties. Surplus funds are only invested in instruments that are tradeable in highly liquid markets.
The tables below analyse the Group’s financial liabilities into relevant maturity groupings. The amounts disclosed in the table are the
contractual undiscounted cash flows. Balances due within 12 months equal their carrying amounts as the impact of discounting is
not significant.
LESS THEN 6
MONTHS
TOTAL
CONTRACTUAL
CASH FLOWS
CARRYING
AMOUNT OF
LIABILITIES
291,556
291,556
291,556
291,556
291,556
291,556
LESS THEN 6
MONTHS
TOTAL
CONTRACTUAL
CASH FLOWS
CARRYING
AMOUNT OF
LIABILITIES
339,833
339,833
339,833
339,833
339,833
339,833
30-JUN-21
Trade and other payables
Total exposure to liquidity risk
30-JUN-20
Trade and other payables
Total exposure to liquidity risk
26
INVICTUS ENERGY LIMITED2021 ANNUAL REPORT 3. Financial Risk Management - CONTINUED
(b)
Liquidity risk - CONTINUED
Interest rate risk
The Group’s exposure to interest rate risk and the effective weighted average interest rate for classes of financial assets and liabilities
is set out below:
Floating interest rate:
Cash available at call
Fixed interest rate:
Deposits at call
WEIGHTED
AVERAGE
INTEREST RATE
30-JUN-21
WEIGHTED
AVERAGE
INTEREST RATE
30-JUN-20
0.00%
2,321,316
0.48%
191,391
0.01%
6,813,955
2.14%
1,305,623
Total exposure to interest rate risk
9,135,271
1,497,014
The Group’s sensitivity to movement in interest rates is not significant to the group.
(c)
Credit risk
The carrying amount of cash and cash equivalents and trade and other receivables (excluding prepayments) represent the Group’s
maximum exposure to credit risk in relation to financial assets.
Cash and short-term liquid investments are placed with reputable banks, so no significant credit risk is expected. None of the financial
assets are either past due or impaired.
(d)
Fair value measurements
The carrying values less impairment provision of trade receivables and payables are assumed to approximate their fair values due to their
short-term nature. The fair value of financial liabilities for disclosure purposes is estimated by discounting the future contractual cash flows
at the current market interest rate that is available to the Group for similar financial instruments.
4. Critical Accounting Estimates and Judgements
Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations
of future events that may have a financial impact on the entity and that are believed to be reasonable under the circumstances.
The Group makes estimates and assumptions concerning the future. The resulting accounting estimates and judgements may differ
from the related actual results and may have a significant effect on the carrying amount of assets and liabilities within the next financial
year and on the amounts recognised in the financial statements. The estimates and assumptions that have a significant risk of causing a
material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below.
(a)
Impairment of deferred exploration and evaluation expenditure
Exploration and evaluation costs are carried forward where right of tenure of the area of interest is current. These costs are carried forward
in respect of an area that has not at balance date reached a stage that permits reasonable assessment of the existence of economically
recoverable reserves. The Board and Management have assessed the carrying value of the Exploration and Evaluation Expenditure to be
impaired. Refer to the accounting policy stated in note 12 for movements in the exploration and evaluation expenditure balance.
(b)
Share based payment transactions
The group measures the cost of equity-settled transactions with employees and consultants by reference to the fair value of the equity
instruments at the date at which they are granted. The fair value is determined using appropriate valuation techniques.
(c)
Tax in foreign jurisdictions
The consolidated entity operates in overseas jurisdictions and accordingly is required to comply with the taxation requirements of those
relevant countries. This results in the consolidated entity making estimates in relation to taxes including but not limited to income tax,
goods and services tax, withholding tax and employee income tax. The consolidated entity estimates its tax liabilities based on the
consolidated entity’s understanding of the tax law. Where the final outcome of these matters is different from the amounts that were
initially recorded, such differences will impact profit or loss in the period in which they are settled.
27
INVICTUS ENERGY LIMITED2021 ANNUAL REPORT FOR THE YEAR ENDED 30 JUNE 2021
Notes to the
Consolidated Financial Statements
5. Operating segments
Identification of reportable operating segments
The consolidated entity is organised into one operating segment, being mining and exploration operations. This operating segment is
based on the internal reports that are reviewed and used by the Board of Directors (who are identified as the Chief Operating Decision
Makers (‘CODM’)) in assessing performance and in determining the allocation of resources.
The CODM reviews EBITDA (earnings before interest, tax, depreciation and amortisation). The accounting policies adopted for internal
reporting to the CODM are consistent with those adopted in the financial statements.
The information reported to the CODM is on a monthly basis.
6. Other Revenue, Corporate Costs and Professional Fees
2021
A$
2020
A$
325,000
100,000
425,000
40,359
14,126
82,432
6,016
31,688
38,181
212,802
44,544
18,750
65,000
11,562
10,000
15,193
80,365
5,610
218,259
469,283
-
-
-
9,281
-
34,359
6,679
9,484
17,900
77,703
41,616
31,250
73,399
7,034
100,000
26,882
60,992
5,814
-
346,987
Other revenue
Lease surrender fee 1
ATO cash flow boost
Total other revenue
Corporate costs
D&O Insurance
Rent
ASX Fees
ASIC Fees
Share registry Fees
Other
Total corporate costs
Professional fees
Audit fees
Company Secretarial
Accounting fees
Legal fees
Corporate advisory
Staff recruitment costs
Investor relations
Corporate tax advice
Consultants – share based payments
Total professional fees
1 Relates to a cash payment to Invictus Energy for the early surrender of their Head Office lease at 24 Outram Street, West Perth.
28
INVICTUS ENERGY LIMITED2021 ANNUAL REPORT
7. Auditor Remuneration
Services provided by the Auditor – BDO Audit (WA) Pty Ltd
Audit and review of financial statements
Tax compliance services
Total services provided by the Auditor
8. Taxation
2021
A$
2020
A$
44,544
-
44,544
41,616
-
41,616
The income tax expense for the period presented comprises current and deferred tax. Income tax is recognised in the statement of profit
or loss and other comprehensive income except to the extent that it relates to items recognised directly in equity, in which case it is
recognised in equity.
The current income tax charge is calculated on the basis of the tax laws enacted or substantively enacted at the end of the reporting
period in the countries where the Company’s subsidiaries and associates operate and generate taxable income. Management periodically
evaluates positions taken in tax returns with respect to situations in which applicable tax regulation is subject to interpretation.
It establishes provisions where appropriate on the basis of amounts expected to be paid to the tax authorities.
Deferred tax is provided using the liability method, providing for temporary differences between the carrying amounts of assets and
liabilities for financial reporting purposes and the amounts used for taxation purposes.
A deferred tax asset is recognised only to the extent that it is probable that future taxable profits will be available against which the asset
can be utilised. Deferred tax assets are reduced to the extent that it is no longer probable that the related tax benefit will be realised, or to
the extent that the Group has deferred tax liabilities with the same taxation authority.
The Group is subject to income taxes in Australia and jurisdictions where it has foreign operations. Significant judgement is required
in determining the provision for income taxes across the Group. There are certain transactions and calculations undertaken during the
ordinary course of business for which the ultimate tax determination is uncertain. The group estimates its tax liabilities based on the
Group’s understanding of the tax law. Where the final tax outcome of these matters is different from the amounts that were initially
recorded, such differences will impact the current and deferred income tax assets and liabilities in the period in which such determination
is made.
29
INVICTUS ENERGY LIMITED2021 ANNUAL REPORT FOR THE YEAR ENDED 30 JUNE 2021
Notes to the
Consolidated Financial Statements
8. Taxation - CONTINUED
INCOME TAX EXPENSE
The components of tax expense comprise:
Current income tax charge (benefit)
Adjustments in respect of previous current income tax
Total income tax expense from continuing operation
2021
A$
2020
A$
-
-
-
-
-
-
A reconciliation of income tax expense (benefit) applicable to accounting profit before
income tax at the statutory income tax rate to income tax expense at the Company’s
effective income tax rate for the years ended 30 June 2021 and 30 June 2020 is as follows:
Accounting profit (loss) before income tax
Prima facie tax payable on profit from ordinary activities before income tax at 30% (2020: 30%)
adjusted for:
(1,255,646)
(1,773,898)
(376,694)
(532,170)
Non-deductible expenses
NANE related expenditure
NANE related income
Temporary differences and losses not recognised
Share based payments expense
Income tax expense/(benefit)
The applicable weighted average effective tax rates are as follows:
Unrecognised deferred tax assets/(liabilities)
Deferred tax assets/(liabilities) have not been recognised in respect of the following items:
Prepayments
Right of use asset
Trade and other payables
Right of use liability
Australian tax losses
Capital loss
Capital raising costs
Offset against deferred tax liabilities recognised
Deferred tax assets not brought to account
67,901
4,262
(30,000)
202,300
132,231
-
0%
(1,858)
(19,347)
20,362
28,557
82,118
47,412
-
360,566
42,074
-
0%
(1,001)
(52,512)
21,724
59,022
2,766,961
2,559,740
57,956
5,088
57,956
10,490
2,857,719
2,655,419
-
-
2,857,719
2,655,419
The tax losses do not expire under current legislation. Deferred tax assets have not been recognised in respect of these items because it is
not probable that future taxable profit will be available against which the Company can utilise the benefits. The tax benefits of the above
deferred tax assets will only be obtained if:
a. The consolidated entity derives future assessable income of a nature and of an amount sufficient to enable the benefits to be utilised;
b. The consolidated entity continues to comply with the conditions for deductibility imposed by law; and
c. No changes in income tax legislation adversely affect the consolidated entity from utilising the benefits.
30
INVICTUS ENERGY LIMITED2021 ANNUAL REPORT
9. Gain/(Loss) per Share
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
the bonus elements in ordinary shares issued during the year.
The calculation of basic gain per share at the reporting date was based on the loss attributable to ordinary shareholders of $1,218,646
(2020: loss of $1,729,212) and a weighted average number of ordinary shares outstanding during the current financial year of 491,861,703
(2020: 426,639,936) shares calculated as follows:
Loss for the year
2021
A$
2020
A$
(1,218,646)
(1,729,212)
Weighted average number of ordinary shares (basic and diluted)
491,861,703
426,639,936
Basic and diluted loss per share (cents)
(0.25)
(0.41)
Diluted gain/(loss) per share
Diluted earnings per share adjusts 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 and the weighted average number of
shares assumed to have been issued for no consideration in relation to dilutive potential ordinary shares.
Potential ordinary shares are not considered dilutive, thus diluted gain/(loss) per share is the same as basic gain/(loss) per share.
10. Cash and Cash Equivalents
Cash and cash equivalents comprise cash balances, short-term bills and call deposits. Bank overdrafts that are repayable on demand and
form an integral part of the consolidated entity’s cash management are included as a component of cash and cash equivalents for the
purpose of the statement of cash flows.
Cash and cash equivalents consist of:
Cash on hand
Total cash and cash equivalents
11. Trade and Other Receivables
Trade debtors
GST and VAT receivables
Other receivables
Total trade and other receivables
Risk exposure
2021
A$
2020
A$
9,135,271
1,497,014
9,135,271
1,497,014
2021
A$
30,800
17,424
-
48,224
2020
A$
17,939
13,847
-
31,786
Information about the Group’s exposure to credit, foreign exchange and interest rate risk is provided in note 3.
31
INVICTUS ENERGY LIMITED2021 ANNUAL REPORT
FOR THE YEAR ENDED 30 JUNE 2021
Notes to the
Consolidated Financial Statements
12. Exploration and Evaluation Expenditure
Exploration and evaluation costs are allocated separately to specific areas of interest. Each area of interest is limited to a size related
to a known and probable Mineral Resource capable of supporting a mining operation. Such costs comprise net direct costs and an
appropriate portion of related overhead expenditure directly related to activities in the area of interest.
Exploration and evaluation costs incurred in the normal course of operations are capitalised.
Exploration and evaluation costs are capitalised where they are the result of an acquisition from a third party. These capitalised costs are only
carried forward to the extent that they are expected to be recouped through the successful development of the area or where activities in
the area have not yet reached a stage that permits reasonable assessment of the existence of economically recoverable reserves.
When a decision to proceed to development is made the exploration and evaluation costs capitalised to that area are transferred to
mine development within property, plant and equipment. All costs subsequently incurred to develop a mine prior to the start of mining
operations within the area of interest are capitalised. These costs include expenditure to develop new ore bodies within the area of
interest, to define further mineralisation in existing areas of interest, to expand the capacity of a mine and to maintain production.
The future recoverability of capitalised exploration and evaluation expenditure is dependent on a number of factors, including whether
the Company decides to exploit the related lease itself, or, if not, whether it successfully recovers the related exploration and evaluation
asset through sale.
Factors that could impact future recoverability include the level of reserves and resources, future technological changes, cost of drilling
and production, production rates, future legal changes (including changes to environmental restoration obligations) and changes to
commodity prices.
As at 30 June 2021, the carrying value of the capitalised exploration and evaluation properties of the consolidated entity was $8,821,190
(2020: $8,021,198); the carrying amounts of individual projects are as per the reconciliation of movement in exploration and evaluation
property below.
Reconciliation of movement in exploration and evaluation expenditure
CABORA BASSA PROJECT
Project carrying value at 1 July
Cost incurred during the year
Effect of translation to presentation currency
Project carrying value at 30 June
2021
A$
8,021,198
1,344,904
(544,912)
2020
A$
7,154,189
745,451
121,558
8,821,190
8,021,198
The total recoverability of the carrying amounts of exploration and evaluation assets is dependent on the successful development and
commercial exploitation or sale of the respective areas of interest.
13. Trade and Other Payables
Trade and other payables are non-interest bearing liabilities stated at cost and settled within 30 days.
Trade creditors
Accrued expenses
Total trade and other payables
2021
A$
192,556
99,000
291,556
2020
A$
238,547
101,309 1
339,883
Note 1: As at 30 June 2021 the Directors of the Company are owed nil in deferred salaries and fees (June 2020: $74,311)
Trade and other payables are non-interest bearing liabilities stated at cost and settled within 30 days. Information about the Group’s
exposure to foreign currency risk is provided in note 3.
32
INVICTUS ENERGY LIMITED2021 ANNUAL REPORT 14. Share Capital
Ordinary shares are classified as equity.
Incremental costs directly attributable to the issue of new shares or options are shown in equity as a deduction, net of tax, from the
proceeds. Incremental costs directly attributable to the issue of new shares or options for the acquisition of a business are not included in
the cost of the acquisition as part of the purchase consideration.
If the entity reacquires its own equity instruments, for example as a result of a share buy-back, those instruments are deducted from equity
and the associated shares are cancelled. No gain or loss is recognised in the profit or loss and the consideration paid including any directly
attributable incremental costs (net of income taxes) is recognised directly in equity.
The Group’s capital is comprised of ordinary shares and options over ordinary shares of the Company.
Shares on issue
Issuance cost
Total share capital
Reconciliation of movement in issued capital
Balance as at 30 June 2019
Issue of shares – capital raising
Shares to be issued 1
Share based payments (note 20)
Share issuance costs
Balance as at 30 June 2020
Issue of shares – placement
Issue of shares – placement
Issue of shares – consultants
Issue of shares – directors and employees
Issue of shares – exercise of options
Loss on settlement
Share issuance costs
Balance as at 30 June 2021
1
Shares to be issued
2021
A$
41,744,948
(3,390,581)
38,354,367
NUMBER OF
SHARES
391,001,892
57,692,314
-
500,000
-
449,194,206
15,968,329
2020
A$
30,763,544
(2,851,885)
27,911,659
A$
26,064,996
1,500,000
442,583
19,000
(114,920)
27,911,659
224,676
72,727,273
8,000,000
7,538,182
4,649,397
400,000
182,120
35,000,000
2,100,000
-
-
74,608
(538,696)
585,077,387
38,354,367
The Company entered into a binding share subscription agreement with the Mangwana Opportunities Fund. The share subscription
agreement raised net proceeds of AU$ 442,583 through the placement of 12,564,143 shares at a share price of ~$0.035. The condition
precedent to the completion of the placement was approval by the Reserve Bank of Zimbabwe Exchange Control which was granted
subsequent to year end.
Ordinary shares entitle the holder to participate in dividends and the proceeds on winding up of the Company in the proportion to the
number and amount paid on the shares held.
At 30 June 2021, the Company had 46,272,727 unlisted options over ordinary shares on issue (2020: 44,000,000).
33
INVICTUS ENERGY LIMITED2021 ANNUAL REPORT FOR THE YEAR ENDED 30 JUNE 2021
Notes to the
Consolidated Financial Statements
14. Share Capital - CONTINUED
Reconciliation of movement in unlisted options over ordinary shares
Total unlisted options as at 30 June 2019
Director options
Director options
Director options
Total unlisted options as at 30 June 2020
Placement options
Broker options
Exercise of options
NUMBER
ISSUE DATE
EXPIRY DATE
EXERCISE PRICE
(CENTS)
35,000,000
3,000,000
3,000,000
3,000,000
44,000,000
31-Jul-19
31-Jul-19
31-Jul-19
31-Jul-22
31-Jul-22
31-Jul-22
36,363,636
29-Mar-21
30-Mar-24
909,091
29-Mar-21
30-Mar-24
(35,000,000)
various
various
6
9
12
17
17
6
Total unlisted options as at 30 June 2021
46,272,727
Options over ordinary shares carry no voting or dividend rights.
Performance shares over ordinary shares
The fair value of a performance shares is measured using the share price at the date the vesting condition is met.
At 30 June 2021, the Company had 44,179,281 performance shares over ordinary shares on issue (2020: 44,179,281). Term and conditions
of the performance shares are detailed below:
TRANCHE
NUMBER
ISSUE DATE
EXPIRY DATE
VESTING CONDITION
Class C
44,179,281
22-Jun-18
20-Dec-21
Drilling of an exploration well upon the Cabora Bassa Project
that results in the maiden booking of Contingent Resources
or Reserves (as those terms are defined in the Guidelines for
Application of the Petroleum Resources Management System
(2011 Edition).
Reconciliation of movement in performance shares over ordinary shares
Total as at 30 June 2019
Expired 2
Total as at 30 June 2020
Total as at 30 June 2021
NUMBER
ISSUE DATE
EXPIRY DATE
75,767,103
31,587,822
44,179,281
44,179,281
22-Jun-18
20-Jun-20
Note 2: 31,587,822 Class B performance shares expired during the prior year as the vesting condition of A farmout which includes a commitment to drill a well to a minimum
planned depth of 3,000 metres with respect to the Cabora Bassa Project was not achieved by the expiry date of 20 June 2020.
34
INVICTUS ENERGY LIMITED2021 ANNUAL REPORT 14. Share Capital - CONTINUED
Performance rights over ordinary shares
The fair value of a performance rights is measured using the share price at the date the vesting condition is met.
During the financial year the milestones were not met and therefore the performance rights lapsed. At 30 June 2021, the Company had
nil performance rights over ordinary shares on issue (2020: nil). Term and conditions of the performance rights which lapsed during the
financial year are detailed below:
PERFORMANCE
RIGHTS
Class A
5,900,000
PROJECT MILESTONE
SHARE PRICE MILESTONE
(a) The Company announcing the execution of the Non-Binding
Farm-in Agreement on or before 31 December 2020; and
(b) the Binding Farm-in Agreement, having been executed,
becomes unconditional on or before 30 June 2021.
The Company achieving a VWAP
of at least $0.045 over any twenty
consecutive trading day period
before 31 December 2020.
Class B
5,900,000
The Company achieving the grant of the Extension
Application on or before 31 December 2020.
The Company achieving a VWAP
of at least $0.045 over any twenty
consecutive trading day period
before 31 December 2020
Capital risk management
The Group’s objectives when managing capital are to safeguard their ability to continue as a going concern, so that it can continue to
provide returns for shareholders and benefits for other stakeholders, and to maintain an optimal capital structure to reduce the cost
of capital. In order to maintain or adjust the capital structure, the Group may adjust the amount of dividends paid to shareholders,
return capital to shareholders, issue new shares or sell assets to reduce debt.
15. Reserves
Share-based payments reserve
The share-based payments reserve represents the value of options issued under the compensation arrangement that the consolidated
entity is required to include in the consolidated financial statements. No gain or loss is recognised in the profit or loss on the purchase,
sale, issue or cancellation of the consolidated entity’s own equity instruments.
Translation reserve
The translation reserve comprises all foreign exchange differences arising from the translation of the financial statements of foreign
operations where their functional currency is different to the presentation currency of the reporting entity.
Share-based payments reserve
Foreign currency translation reserve
Total reserves
Reconciliation of movement in reserves
Share-based payments reserve
Balance as at 1 July
Options issued – Director remuneration (note 20)
Balance as at 30 June
Foreign currency translation reserve
Balance as at 1 July
Effect of translation of foreign currency operation to Group presentation currency
Balance as at 30 June
2021
A$
674,095
(181,637)
492,458
662,841
11,254
674,095
281,148
(462,785)
(181,637)
2020
A$
662,841
281,148
943,989
541,594
121,247
662,841
204,083
77,065
281,148
Total reserves balance as at 30 June
492,458
943,989
35
INVICTUS ENERGY LIMITED2021 ANNUAL REPORT FOR THE YEAR ENDED 30 JUNE 2021
Notes to the
Consolidated Financial Statements
16. Interests in Other Entities
The consolidated financial statements incorporate the assets and liabilities of all subsidiaries of Invictus Energy Limited (“the Company”
or “the parent entity”) as at 30 June 2021 and the results of all subsidiaries for the year then ended. Invictus Energy Limited and its
subsidiaries together are referred to in this financial report as the Group or the consolidated entity.
Subsidiaries are all those entities over which the consolidated entity has control. The consolidated entity controls an entity when the
consolidated entity 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 to direct the activities of the entity. Subsidiaries are fully consolidated from the date on which control is
transferred to the consolidated entity. They are de-consolidated from the date that control ceases. Intercompany transactions, balances
and unrealised gains on transactions between entities in the consolidated entity are eliminated. Unrealised losses are also eliminated
unless the transaction provides evidence of the impairment of the asset transferred. Accounting policies of subsidiaries have been
changed where necessary to ensure consistency with the policies adopted by the consolidated entity.
The acquisition method of accounting is used to account for business combinations by the Group. A change in ownership interest,
without the loss of control, is accounted for as an equity transaction, where the difference between the consideration transferred and the
book value of the share of the non-controlling interest acquired is recognized directly in equity attributable to the parent.
Non-controlling interest in the results and equity of subsidiaries are shown separately in the statement of profit or loss and other
comprehensive income, statement of financial position and statement of changes in equity of the consolidated entity. Losses incurred by
the consolidated entity are attributed to the non-controlling interest in full, even if that results in a deficit balance.
Non-controlling interests in the results and equity of subsidiaries are shown separately in the statement of comprehensive income,
statement of financial position and statement of changes in equity.
(a)
Subsidiaries
The consolidated entity’s principal subsidiaries at 30 June 2021 and 30 June 2020 are set out below. Unless otherwise stated, they have
share capital consisting solely of ordinary shares that are held directly by the consolidated entity, and the proportion of ownership
interests held equals the voting rights held by the consolidated entity. The country of incorporation or registration is also their principal
place of business. Principal activity of all subsidiaries is gas exploration and development.
HIS Texas LLC
Invictus Energy Resources Pty Limited
Invictus Energy Mauritius Limited
PLACE OF
BUSINESS/
COUNTRY OF
INCORPORATION
USA
Australia
Mauritius
Invictus Energy Resources Zimbabwe (Pvt) Ltd
Zimbabwe
Geo Associates (Pvt) Ltd
Zimbabwe
OWNERSHIP INTEREST HELD BY
THE CONSOLIDATED ENTITY
NON-CONTROLLING INTERESTS
2021
100%
100%
100%
100%
80%
2020
100%
2021
-
2020
-
100%
100%
100%
80%
-
-
-
-
-
-
20%
20%
36
INVICTUS ENERGY LIMITED2021 ANNUAL REPORT 16. Interests in Other Entities
(b)
Non-controlling interests
The following table sets out the summarised financial information for each subsidiary that has non-controlling interests.
Amounts disclosed are before intercompany eliminations.
Summarised statement of financial position
Current assets
Current liabilities
Current net liabilities/assets
Non-current assets
Non-current liabilities
Non-current net assets
Net liabilities/ assets
Accumulated NCI
Statement of Profit or Loss and Other Comprehensive Income
Revenue
Loss for the period
Other comprehensive income
Total comprehensive income
Loss allocated to NCI
FCTR allocated to NCI
Summarised cash flows
Cash flows from/ (used in) operating activities
Cash flows from/ (used in) investing activities
Cash flows from/ (used in) financing activities
Net increase/(decrease) in cash and cash equivalents
(c)
Transactions with non-controlling interests
There were no transactions with the non-controlling interests during the current year.
GEO ASSOCIATES (PVT) LTD
2021
A$
2020
A$
34,151
-
34,151
6,088,649
137,110
(7,808)
129,302
8,021,198
(6,750,560)
(8,021,198)
(661,911)
(627,760)
1,037,889
-
(129,302)
1,189,799
329
185,000
-
185,000
(37,000)
(114,910)
-
-
-
-
59
221,222
-
221,222
(44,244)
19,374
-
-
-
-
37
INVICTUS ENERGY LIMITED2021 ANNUAL REPORT FOR THE YEAR ENDED 30 JUNE 2021
Notes to the
Consolidated Financial Statements
17. Reconciliation of Gain/(Loss) After Income Tax to Net Cash Outflow Used
Loss after tax
Add/(less) non-cash items:
Share- based payments expense
Depreciation
Loss on settlement of fees
Changes in working capital:
Decrease/(increase) in trade and other receivables
Decrease/(increase) in other assets
Increase/(decrease) in trade and other payables
Increase in provisions
Net cash outflow from operating activities
Non-cash investing and financing activities:
Issue of ordinary shares – Director sign on incentive
18. Parent Entity
Current assets
Non-current assets
Total assets
Current liabilities
Non-current liabilities
Total liabilities
Net assets
Contributed equity
Share-based payment reserve
Foreign currency translation reserve
Accumulated losses
Total equity
Loss for the year
Total comprehensive loss for the year
Commitments
Refer to note 22: Capital and Other Commitments.
Contingencies
NOTES
20
2021
A$
2020
A$
(1,255,646)
(1,773,456)
593,374
136,140
74,608
(16,438)
(34,531)
(259,480)
(5,703)
140,247
128,946
-
1,091
-
(128,464)
22,812
(767,676)
(1,608,824)
20
-
-
19,000
19,000
2021
A$
9,049,130
287,128
9,336,258
335,483
-
335,483
9,000,775
2020
A$
1,389,565
297,746
1,687,311
329,524
73,701
403,225
1,284,086
38,354,367
27,911,659
974,995
662,841
-
-
(30,328,587)
(27,290,414)
9,000,775
1,284,086
2,737,232
2,737,232
2,701,300
2,701,300
There were no contingent assets or liabilities of the parent as at 30 June 2021 (30 June 2020: $ nil).
Guarantees entered into by the parent entity in relation to the debts of its subsidiaries
There are no deeds of cross guarantee in place by the parent entity.
38
INVICTUS ENERGY LIMITED2021 ANNUAL REPORT 19. Related Party Transactions
(a)
Parent entities
The ultimate parent entity within the Group is Invictus Energy Limited incorporated in Australia.
(b)
Subsidiaries
Interests in subsidiaries are set out in note 16(a).
(c)
Other related party transactions
During the year the Company paid in cash and shares $57,350 to Laurus Corporate Services Pty Ltd, an entity related to Mr Gabriel
Chiappini, for the provision of non-executive director and company secretarial services, on normal commercial terms and conditions
and at market rates (2020: $60,000).
On 15 February 2019 the Company entered into an arrangement with Laurus Corporate Services Pty Ltd, an entity related to which
Mr Gabriel Chiappini, whereby Laurus Corporate Services Pty Ltd rents one office and one car bay at a cost of $1,950 plus GST from the
Company per calendar month. The arrangement is for no fixed term and can be cancelled by either party by providing one months notice.
On 15 February 2019 the Company entered into an arrangement with Eneabba Gas Ltd, an entity related to Mr Gabriel Chiappini
(resigned 28 April 2021) and Mr Barnaby Egerton-Warburton, for the provision of one office and one car bay at a cost of $1,950 plus GST
per calendar month. The arrangement is for no fixed term and can be cancelled by either party by providing one months notice.
During the financial year the Company entered into an arrangement with Pantera Minerals Ltd, an entity related to Mr Barnaby
Egerton-Warburton, for the provision of 3 offices and one car bay at a cost of $7,150 plus GST per calendar month. The arrangement
is for no fixed term and can be cancelled by either party by providing one months notice.
During the financial year the Company entered into an arrangement with BXW Pty Ltd, an entity related to Mr Barnaby Egerton-Warburton,
for the provision of one car bay at a cost of $450 plus GST per calendar month. The arrangement is for no fixed term and can be cancelled
by either party by providing one months notice.
There were no other transactions with related parties during the current year.
All transactions were made on normal commercial terms and conditions and at market rates
There were no other transactions with related parties during the current year.
(d)
Key management personnel
The following persons were Directors and key management personnel of Invictus Energy Limited during the financial year:
(i) Managing Director
(iii) Non-executive Directors
Mr Scott Macmillan
Dr Stuart Lake
Mr Joe Mutizwa
Mr Barnaby Egerton-Warburton
Mr G Chiappini
(iii) Non-executive Director and Company Secretary Mr G Chiappini
There were no other persons, other than the Directors as detailed above, that were identified as key management personnel of the
Company during the current year.
(e)
Key management personnel compensation
The key management personnel compensation was as follows:
Short-term employee benefits
Post-employment benefits
Share-based payment
Total key management personnel compensation
2021
A$
438,783
32,655
53,396
524,834
2020
A$
611,909
34,160
140,247
786,316
39
INVICTUS ENERGY LIMITED2021 ANNUAL REPORT FOR THE YEAR ENDED 30 JUNE 2021
Notes to the
Consolidated Financial Statements
20. Share-Based Payments
(a)
Employee options over ordinary shares
Decisions to grant options are made by the Board and are based on aligning the long-term interests of key management personnel,
employees, consultants and strategic external parties with those of the Company’s shareholders.
The exercise price of options is based on the weighted average price at which the Company’s shares are traded on the Australian
Securities Exchange (ASX) on or about the date of grant.
Each option is convertible into one ordinary share.
The fair value of an option is measured using an appropriate valuation method. Measurement inputs include share price on measurement
date, exercise price of the instrument, expected volatility (based on weighted average historic volatility adjusted for changes expected due
to publicly available information), weighted average expected life of the instruments (based on historical experience and general option
holder behaviour), expected dividends, and the risk-free interest rate (based on government bonds). Service and non-market performance
conditions attached to the transactions are not taken into account in determining fair value.
Share options granted
30 June 2021
No share options were granted to employees or consultants for services rendered during the financial year.
30 June 2020
On 31 July 2019 the company announced the appointment of Dr Stuart Lake as Non-Executive Chairman of the Company,
effective 1 August 2019. Dr Lake was issued with 9,000,000 unlisted options with the following terms, as part of a sign on incentive:
CLASS
NUMBER
ISSUED
GRANT DATE
EXPIRY DATE
VESTING CONDITIONS
EXERCISE PRICE
Director options
3,000,000
31 July 2019
31 July 2022
12 months from date of issue
Director options
3,000,000
31 July 2019
31 July 2022
12 months from date of issue
6 cents
9 cents
Director options
3,000,000
31 July 2019
31 July 2022
12 months from date of issue
12 cents
FAIR VALUE AT
GRANT DATE
1.8 cents 1
1.4 cents 1
1.2 cents 1
Note 1: The black-scholes pricing model was used to value these options. Inputs into the valuation model were as stated in the table above, and as follows:
• Spot price: The spot price of the Company’s shares was $0.04 per share at the close of trade on 25 July 2019, the closing price immediately prior to Valuation Date.
• Expected future volatility: The share price volatility of the Company at 85% for the securities, was calculated and based on assessing historical volatility over recent
trading periods.
• Risk free rate: Determined based on volatility yields of Commonwealth bonds using a three-year bond, the period which most closely corresponds to the maximum life
of the Options. The interest rates were measured as the closing rate on the day prior to the Valuation Date. A three-year bond yielded 0.83% on 25 July 2019 as disclosed
by the Reserve Bank of Australia.
The fair value of the 9,000,000 Director options granted during the June 2020 financial year was $132,501, with $121,247 recognised in
Consolidated Statement of Financial Performance for the year ended 30 June 2020.
Reconciliation of movement in share options
2021
2020
AVERAGE
EXERCISE PRICE
PER OPTION
NUMBER OF
OPTIONS
AVERAGE
EXERCISE PRICE
PER OPTION
$0.07
44,000,000
-
-
$0.06
(35,000,000)
-
$0.06
$0.06
-
9,000,000
9,000,000
$0.06
$0.09
-
-
$0.07
$0.07
NUMBER OF
OPTIONS
35,000,000
9,000,000
-
-
44,000,000
44,000,000
As at 1 July
Granted during the year
Exercised during the year
Lapsed during the year
As at 30 June
Vested and exercisable at 30 June
40
INVICTUS ENERGY LIMITED2021 ANNUAL REPORT
20. Share-Based Payments - CONTINUED
(a)
Employee options over ordinary shares - CONTINUED
Share options outstanding at the end of the year
GRANT DATE
EXPIRY DATE
EXERCISE PRICE
NUMBER OF OPTIONS
31.7.2019
31.7.2019
31.7.2019
31.7.2022
31.7.2022
31.7.2022
(CENTS)
6
9
12
2021
3,000,000
3,000,000
3,000,000
9,000,000
2020
3,000,000
3,000,000
3,000,000
44,000,000
Weighted average remaining contractual life of options outstanding at 30 June 2021 is 1.08 years (30 June 2020: 1.21).
(b)
Performance shares over ordinary shares
Decisions to grant performance shares are made by the Board and are based on aligning the long-term interests of key management
personnel, employees, consultants and strategic external parties with those of the Company’s shareholders.
Each performance shares converts into one ordinary share for a nil exercise price upon the completion of certain vesting conditions.
The fair value of a performance share is measured using the share price at the date the vesting condition is met.
Performance shares granted
30 June 2021
No performance shares were granted to employees or consultants for services rendered during the financial year.
30 June 2020
No performance shares were granted to employees or consultants for services rendered during the financial year.
Reconciliation of movement in performance shares
CLASS B
As at 1 July
Granted during the year
Exercised during the year
Expired during the year2
As at 30 June
Note 2: 31,587,822 Class B Performance Shares expired on 20 June 2020.
CLASS C
As at 1 July
Granted during the year
Exercised during the year
Expired during the year
As at 30 June
2021
NUMBER
-
-
-
-
-
2020
NUMBER
31,587,822
-
-
(31,587,822)
-
2021
NUMBER
2020
NUMBER
44,179,281
44,179,281
-
-
-
-
-
-
44,179,281
44,179,281
Performance shares outstanding at the end of the year
NUMBER
ISSUE DATE
EXPIRY DATE
VESTING CONDITION
44,179,281
22-Jun-2018
20-Dec-21
Drilling of an exploration well upon the Cabora Bassa Project that results in the
maiden booking of Contingent Resources or Reserves (as those terms are defined
in the Guidelines for Application of the Petroleum Resources Management
System (2011 Edition).
41
INVICTUS ENERGY LIMITED2021 ANNUAL REPORT
FOR THE YEAR ENDED 30 JUNE 2021
Notes to the
Consolidated Financial Statements
20. Share-Based Payments - CONTINUED
(c)
Performance rights over ordinary shares
Decisions to grant performance rights are made by the Board and are based on aligning the long-term interests of key management
personnel, employees, consultants and strategic external parties with those of the Company’s shareholders.
Each performance right converts into one ordinary share for a nil exercise price upon certain milestones being met.
The fair value of a performance right is measured using the share price at the date the vesting condition is met.
Performance rights granted
30 June 2021
The following performance rights were granted during the financial year:
ISSUE DATE
CLASS
EXPIRY DATE
PROJECT MILESTONE
SHARE PRICE MILESTONE
5,900,000
A
31-Dec 2020
5,900,000
B
31-Dec 2020
(a) The Company announcing the execution of the
Non-Binding Farm-in Agreement on or before
31 December 2020; and
(b) the Binding Farm-in Agreement, having been executed,
becomes unconditional on or before 30 June 2021.
The Company achieving the grant of the Extension
Application on or before 31 December 2020.
The Company achieving a VWAP
of at least $0.045 over any twenty
consecutive trading day period
before 31 December 2020.
The Company achieving a VWAP
of at least $0.045 over any twenty
consecutive trading day period
before 31 December 2020
As the milestones for class A and B were not achieved within the specified time frame, the underlying performance rights lapsed and were
cancelled. As such, no performance right expense was recognised in the statement of financial performance during the financial year.
30 June 2020
No performance rights were granted to employees or consultants for services rendered during the financial year.
Reconciliation of movement in performance rights
2021
NUMBER
2020
NUMBER
-
5,900,000
-
(5,900,000)
-
-
-
-
-
-
2021
NUMBER
2020
NUMBER
-
5,900,000
-
(5,900,000)
-
-
-
-
-
-
CLASS A
As at 1 July
Granted during the year
Exercised during the year
Expired during the year
As at 30 June
CLASS B
As at 1 July
Granted during the year
Exercised during the year
Expired during the year
As at 30 June
There were no performance rights on issue at year end 2021.
42
INVICTUS ENERGY LIMITED2021 ANNUAL REPORT
20. Share-Based Payments - CONTINUED
(d)
Shares issued during the current year
June 2021
No shares were granted to employees or consultants for services rendered during the June 2021 financial year.
June 2020
The following shares were issued during the financial year:
On 31 July 2019 the company announced the appointment of Dr Stuart Lake as Non-Executive Chairman of the Company, effective
1 August 2019. Dr Lake was issued with 500,000 shares as part of a sign on incentive. The value of the shares was $19,000 representing
the share price at the date of grant and was recognised within Directors’ and executives’ fees within the Consolidated Statement of
Financial Performance in the 2020 year.
(e)
Expenses arising from share-based payment transactions
Director options expense
Directors and employees shares issued
Consultants shares issued
Total share-based payments expense recognised in income statement
within Directors’ and executives’ fees
Capital issuance costs recognised in equity
Total share-based payments
2021
A$
11,254
182,120
400,000
2020
A$
121,247
19,000
-
593,374
140,247
-
-
593,374
140,247
21. Events Occurring After Reporting Date
On 5 July 2021 the Company announced the lapse of conditional rights to 11,800,000 performance shares because the conditions
had not been met.
On 2 August 2021 the Company announced that it had changed its registered office to Level 1, 10 Outram Street, West Perth,
Western Australia, 6005.
Other than the above, no matters or circumstances have arisen since the end of the financial year which have significantly affected
or may significantly affect the operations, results or state of affairs of the Group in future financial years.
43
INVICTUS ENERGY LIMITED2021 ANNUAL REPORT FOR THE YEAR ENDED 30 JUNE 2021
Notes to the
Consolidated Financial Statements
22. Capital and Other Commitments
Operating lease commitments
The operating lease schedule below relates to the head office lease. The lease commenced on 1 February 2019 with an initial 3 year term.
Not later than 1 year
Later than 1 year but not later than 2 years
Later than 2 years but not later than 5 years
Renewal application
30-JUN-21
A$
30-JUN-20
A$
-
-
-
-
-
-
-
-
Geo Associates (Pvt) Ltd is the holder of Special Grant 4571 (SG4571) and is required to pay a renewal fee of US$20,000 during the
30 June 2022 financial year.
23. Contingencies
No contingent liabilities exist at the end of the financial year.
44
INVICTUS ENERGY LIMITED2021 ANNUAL REPORT Director’s
Declaration
In the Directors’ opinion:
a)
the accompanying financial statements set out on pages 22 to 44 and the Remuneration Report in the Directors’ Report are
in accordance with the Corporations Act 2001, including:
i. giving a true and fair view of the Group’s financial position as at 30 June 2021 and of its performance, as represented by
the results of its operations, changes in equity and cash flows, for the year ended on that date; and
ii. complying with Australian Accounting Standards, Corporations Regulations 2001 and other mandatory professional
reporting requirements;
b)
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.
This declaration is made after receiving the declarations required to be made to the Directors in accordance with section 295A of the
Corporations Act 2001 for the year ended 30 June 2021.
This declaration is made in accordance with a resolution of the Board of Directors.
Scott Macmillan
MANAGING DIRECTOR
30 September 2021
45
INVICTUS ENERGY LIMITED2021 ANNUAL REPORT Independent
Audit Report
Tel: +61 8 6382 4600
Fax: +61 8 6382 4601
www.bdo.com.au
Tel: +61 8 6382 4600
Fax: +61 8 6382 4601
Tel: +61 8 6382 4600
www.bdo.com.au
Fax: +61 8 6382 4601
www.bdo.com.au
38 Station Street
Subiaco, WA 6008
PO Box 700 West Perth WA 6872
Australia
38 Station Street
Subiaco, WA 6008
38 Station Street
PO Box 700 West Perth WA 6872
Subiaco, WA 6008
Australia
PO Box 700 West Perth WA 6872
Australia
INDEPENDENT AUDITOR'S REPORT
INDEPENDENT AUDITOR'S REPORT
To the members of Invictus Energy Limited
INDEPENDENT AUDITOR'S REPORT
To the members of Invictus Energy Limited
Report on the Audit of the Financial Report
To the members of Invictus Energy Limited
Opinion
We have audited the financial report of Invictus Energy Limited (the Company) and its subsidiaries (the
Report on the Audit of the Financial Report
Group), which comprises the consolidated statement of financial position as at 30 June 2021, the
Report on the Audit of the Financial Report
consolidated statement of profit or loss and other comprehensive income, the consolidated statement
Opinion
of changes in equity and the consolidated statement of cash flows for the year then ended, and notes
Opinion
We have audited the financial report of Invictus Energy Limited (the Company) and its subsidiaries (the
to the financial report, including a summary of significant accounting policies and the directors’
Group), which comprises the consolidated statement of financial position as at 30 June 2021, the
We have audited the financial report of Invictus Energy Limited (the Company) and its subsidiaries (the
declaration.
consolidated statement of profit or loss and other comprehensive income, the consolidated statement
Group), which comprises the consolidated statement of financial position as at 30 June 2021, the
In our opinion the accompanying financial report of the Group, is in accordance with the Corporations
of changes in equity and the consolidated statement of cash flows for the year then ended, and notes
consolidated statement of profit or loss and other comprehensive income, the consolidated statement
Act 2001, including:
to the financial report, including a summary of significant accounting policies and the directors’
of changes in equity and the consolidated statement of cash flows for the year then ended, and notes
declaration.
Giving a true and fair view of the Group’s financial position as at 30 June 2021 and of its
(i)
to the financial report, including a summary of significant accounting policies and the directors’
financial performance for the year ended on that date; and
declaration.
In our opinion the accompanying financial report of the Group, is in accordance with the Corporations
Act 2001, including:
Complying with Australian Accounting Standards and the Corporations Regulations 2001.
(ii)
In our opinion the accompanying financial report of the Group, is in accordance with the Corporations
Act 2001, including:
Giving a true and fair view of the Group’s financial position as at 30 June 2021 and of its
(i)
Basis for opinion
financial performance for the year ended on that date; and
(i)
Giving a true and fair view of the Group’s financial position as at 30 June 2021 and of its
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under
financial performance for the year ended on that date; and
Complying with Australian Accounting Standards and the Corporations Regulations 2001.
(ii)
those standards are further described in the Auditor’s responsibilities for the audit of the Financial
Report section of our report. We are independent of the Group in accordance with the Corporations
Complying with Australian Accounting Standards and the Corporations Regulations 2001.
(ii)
Basis for opinion
Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board’s
Basis for opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under
APES 110 Code of Ethics for Professional Accountants (including Independence Standards) (the Code)
those standards are further described in the Auditor’s responsibilities for the audit of the Financial
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under
that are relevant to our audit of the financial report in Australia. We have also fulfilled our other
Report section of our report. We are independent of the Group in accordance with the Corporations
those standards are further described in the Auditor’s responsibilities for the audit of the Financial
ethical responsibilities in accordance with the Code.
Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board’s
Report section of our report. We are independent of the Group in accordance with the Corporations
We confirm that the independence declaration required by the Corporations Act 2001, which has been
APES 110 Code of Ethics for Professional Accountants (including Independence Standards) (the Code)
Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board’s
given to the directors of the Company, would be in the same terms if given to the directors as at the
that are relevant to our audit of the financial report in Australia. We have also fulfilled our other
APES 110 Code of Ethics for Professional Accountants (including Independence Standards) (the Code)
time of this auditor’s report.
ethical responsibilities in accordance with the Code.
that are relevant to our audit of the financial report in Australia. We have also fulfilled our other
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
ethical responsibilities in accordance with the Code.
We confirm that the independence declaration required by the Corporations Act 2001, which has been
for our opinion.
given to the directors of the Company, would be in the same terms if given to the directors as at the
We confirm that the independence declaration required by the Corporations Act 2001, which has been
time of this auditor’s report.
given to the directors of the Company, would be in the same terms if given to the directors as 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.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our opinion.
BDO Audit (WA) Pty Ltd ABN 79 112 284 787 is a member of a national association of independent entities which are all members of BDO Australia Ltd ABN 77 050 110 275,
an Australian company limited by guarantee. BDO Audit (WA) Pty Ltd and BDO Australia Ltd are members of BDO International Ltd, a UK company limited by guarantee, and
form part of the international BDO network of independent member firms. Liability limited by a scheme approved under Professional Standards Legislation.
BDO Audit (WA) Pty Ltd ABN 79 112 284 787 is a member of a national association of independent entities which are all members of BDO Australia Ltd ABN 77 050 110 275,
an Australian company limited by guarantee. BDO Audit (WA) Pty Ltd and BDO Australia Ltd are members of BDO International Ltd, a UK company limited by guarantee, and
form part of the international BDO network of independent member firms. Liability limited by a scheme approved under Professional Standards Legislation.
BDO Audit (WA) Pty Ltd ABN 79 112 284 787 is a member of a national association of independent entities which are all members of BDO Australia Ltd ABN 77 050 110 275,
an Australian company limited by guarantee. BDO Audit (WA) Pty Ltd and BDO Australia Ltd are members of BDO International Ltd, a UK company limited by guarantee, and
form part of the international BDO network of independent member firms. Liability limited by a scheme approved under Professional Standards Legislation.
46
INVICTUS ENERGY LIMITED2021 ANNUAL REPORT Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most significance in
our audit of the financial report of the current period. These matters were addressed in the context of
our audit of the financial report as a whole, and in forming our opinion thereon, and we do not provide
a separate opinion on these matters.
Capitalised exploration and evaluation expenditure
Key audit matter
How the matter was addressed in our audit
The carrying value of exploration and evaluation
Our procedures included, but were not limited to:
expenditure represents a significant asset of the Group
and judgement is applied in considering whether facts
and circumstances indicate that the exploration
expenditure should be tested for impairment. As a
result, the asset was required to be assessed for
impairment indicators in accordance with AASB 6:
Exploration for and Evaluation of Mineral Resources. In
particular whether facts and circumstances indicate
that the capitalised exploration and evaluation
expenditure should be tested for impairment.
Refer to note 12 of the financial report for a
description of the accounting policy, the significant
estimates and judgements and disclosures applied to
exploration and evaluation assets.
•
•
•
•
•
Obtaining a schedule of areas of interest held by
the Group and assessing whether the Group had
rights to tenure over those areas of interest by
comparing the schedule to supporting
documentation including tenement licenses;
Holding discussions with management with
respect to the status of ongoing exploration
programmes in the respective areas of interest
and assessing the Group’s cash flow budget for
the level of budgeted spend on exploration
projects;
Considering whether any areas of interest had
reached a stage where a reasonable assessment
of economically recoverable reserves existed;
Considering whether any other facts or
circumstance existed to indicate impairment
testing was required; and
Assessing the adequacy of the related disclosures
in note 12 to the financial report.
47
INVICTUS ENERGY LIMITED2021 ANNUAL REPORT Independent
Audit Report
Other information
The directors are responsible for the other information. The other information comprises the
information in the Group’s annual report for the year ended 30 June 2021, but does not include the
financial report and the auditor’s report thereon.
Our opinion on the financial report does not cover the other information and we do not express any
form of assurance conclusion thereon.
In connection with our audit of the financial report, our responsibility is to read the other information
and, in doing so, consider whether the other information is materially inconsistent with the financial
report or our knowledge obtained in the audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this
other information, we are required to report that fact. We have nothing to report in this regard.
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 has no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the Financial Report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free
from material misstatement, whether due to fraud or error, and to issue an auditor’s report that
includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an
audit conducted in accordance with the Australian Auditing Standards will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are considered material
if, individually or in the aggregate, they could reasonably be expected to influence the economic
decisions of users taken on the basis of this financial report.
A further description of our responsibilities for the audit of the financial report is located at the
Auditing and Assurance Standards Board website (http://www.auasb.gov.au/Home.aspx) at:
https://www.auasb.gov.au/admin/file/content102/c3/ar1_2020.pdf
This description forms part of our auditor’s report.
48
INVICTUS ENERGY LIMITED2021 ANNUAL REPORT Report on the Remuneration Report
Opinion on the Remuneration Report
We have audited the Remuneration Report included in pages 8 to 14 of the directors’ report for the
year ended 30 June 2021.
In our opinion, the Remuneration Report of Invictus Energy Limited, for the year ended 30 June 2021,
complies with section 300A of the Corporations Act 2001.
Responsibilities
The directors of the Company are responsible for the preparation and presentation of the
Remuneration Report in accordance with section 300A of the Corporations Act 2001. Our responsibility
is to express an opinion on the Remuneration Report, based on our audit conducted in accordance with
Australian Auditing Standards.
BDO Audit (WA) Pty Ltd
Jarrad Prue
Director
Perth, 30 September 2021
49
INVICTUS ENERGY LIMITED2021 ANNUAL REPORT Other Additional
ASX Information
Range of shares at 24 September 2021
RANGE
TOTAL HOLDERS
100,001 and Over
10,001 to 100,000
5,001 to 10,000
1,001 to 5,000
1 to 1,000
Total
678
2,220
878
596
59
4,431
SHARES
493,441,857
82,452,090
6,949,924
2,222,086
11,430
585,077,387
Unmarketable Parcels
Minimum $ 500.00 parcel at $ 0.155 per unit
Top 20 Shareholders at 24 September 2021
RANK
ENTITY
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
16
17
18
19
20
20
20
BAYETHE INVESTMENTS PTY LTD
CITICORP NOMINEES PTY LIMITED
BNP PARIBAS NOMINEES PTY LTD
MANGWANA OPPORTUNITIES (PRIVATE) LIMITED
ALEXANDER HOLDINGS (WA) PTY LTD
BNP PARIBAS NOMINEES PTY LTD SIX SIS LTD
BXW VENTURES PTY LTD
BNP PARIBAS NOMINEES PTY LTD ACF CLEARSTREAM
CLIVE WATERSON SUPERFUND PTY LTD
MR ANDREW GRAHAM PALLESON & MRS HUI PALLESON
WHISTLER STREET PTY LTD
DR SEOW FOONG LOH
MR GABRIEL CHIAPPINI & MRS ROSA CHIAPPINI
MR MAXWELL KENNETH HUDGHTON
HENDRIE SUPER FUND PTY LTD
GLAMOUR DIVISION PTY LTD
MR JAVIER VILCHES
S3 CONSORTIUM PTY LTD
MR GABRIEL CHIAPPINI & MRS ROSA CHIAPPINI
MR DONATO IACOVANTUONO
MR THOMAS JAMES LOH
JEMMA MICHELE MACMILLAN
MR KYLE BRYCE MACMILLAN
Substantial Shareholders at 24 September 2021
Scott Macmillan
50
% OF SHARE CAPITAL
84.34
14.09
1.19
0.38
0.00
100.00
UNITS
201,377
%IC
12.20
2.48
2.36
1.85
1.71
1.49
1.37
1.20
1.06
1.04
0.94
0.90
0.82
0.78
0.77
0.68
0.68
0.67
0.66
0.61
0.60
0.60
0.60
MINIMUM PARCEL SIZE
HOLDERS
3,225
260
# SHARES
71,375,133
14,521,365
13,783,214
10,823,045
10,000,000
8,694,293
8,000,000
7,035,959
6,200,000
6,100,000
5,480,000
5,245,780
4,815,508
4,558,888
4,500,000
4,000,000
4,000,000
3,900,000
3,866,666
3,571,286
3,500,000
3,500,000
3,500,000
SHARES
% OF SHARES
71,375,133
12.20%
INVICTUS ENERGY LIMITED2021 ANNUAL REPORT
Tenement Schedule
TENEMENT REFERENCE AND LOCATION
NATURE OF INTEREST
Gallatin Gas Project , Cherokee County, Texas USA
Working Interest
Cabora Bassa Gas Condensate Project, Zimbabwe
via 80% equity ownership interest
in Geo Associates (Pvt) Ltd
INTEREST
AT BEGINNING
OF PERIOD
INTEREST
AT END
OF PERIOD
-
-
7.5%
80%
Gross Unrisked Estimated Prospective Resources
SG 4571
Gross Unrisked Estimated Prospective Resources#
SOURCE: GETECH GROUP PLC AS AT 26 JUNE 2019
CABORA BASSA PROJECT
GAS (BCF) – 100% GROSS
CONDENSATE (MMBBL) – 100% GROSS
PROSPECT
STRATIGRAPHIC LEVEL
LOW
BEST
HIGH
MEAN
LOW
BEST
HIGH
MEAN
Mzarabani
Msasa
Dande
Forest
Pebbly Arkose
Upper Angwa
Lower Angwa
Total*
Pebbly Arkose
Upper Angwa
Lower Angwa
Total*
51
301
271
721
95
230
1,215
1,037
2,902
317
950
3,359
2,973
9,657
775
411
1,584
1,404
4,414
391
1,439
5,701
17,714
8,204
49
107
71
228
93
198
351
642
156
327
1,738
2,221
19,935
15,948
99
210
743
1,052
9,256
7,405
-
-
7
18
0
26
1
2
2
5
31
25
-
-
38
107
2
147
4
8
13
24
171
137
-
-
136
434
6
576
8
17
74
99
676
541
-
-
60
187
3
249
4
9
31
44
294
235
SG 4571 Licence
Total* Gross (100%)
SG 4571 Licence
Total* Net IVZ (80%)
1,666
1,333
6,343
5,074
Cautionary Statement: The estimated quantities of petroleum that may be potentially recovered by the application of a future development
project relate to undiscovered accumulations. These estimates have both an associated risk of discovery and a risk of development. Further
exploration, appraisal and evaluation are required to determine the existence of a significant quantity of potentially movable hydrocarbons.
Prospective Resource assessments in this release were estimated using probabilistic methods in accordance with SPE-PRMS standards.
Hydrocarbon Resource Estimates – The Prospective Resource estimates for Invictus’ SG 4571 permit presented in this report are
prepared as at 26 June 2019. The estimates have been prepared by the Company in accordance with the definitions and guidelines set
forth in the Petroleum Resources Management System, 2018, approved by the Society of Petroleum Engineers and have been prepared
using probabilistic methods. The Prospective Resource estimates are unrisked and have not been adjusted for both an associated chance
of discovery and a chance of development.
No New Information or Change in Assumptions – Since the date of completion of this hydrocarbon resource study (26 June 2019),
the Company is not aware of any new information and that all material assumptions and technical parameters underpinning prospective
resource estimate continue to apply and have not materially changed
Competent Person Statement Information – In this report information relating to hydrocarbon resource estimates has been compiled
by Getech Group plc. under the supervision of Mr Scott Macmillan, the Invictus Energy Ltd Managing Director. Mr Macmillan has over
13 years’ experience in the oil and gas industry in exploration, field development planning, reserves and resources assessment, reservoir
simulation, commercial valuations and business development and is a member of the Society of Petroleum Engineers. Mr Macmillan
consents to the inclusion of the information in this report relating to hydrocarbon Prospective Resources in the form and context in which
it appears.
51
INVICTUS ENERGY LIMITED2021 ANNUAL REPORT
www.invictusenergy.com