15 October 2015
Manager Companies
Companies Announcements Office
Australian Securities Exchange
LEIGH CREEK ENERGY LIMITED
ASX ANNOUNCEMENT
The Board of Leigh Creek Energy Limited advises that the Annual Report for the year ended 30 June 2015,
released on 30 September 2015 has been amended. The amendment appears on page 18 and now includes
Mr David Shearwood’s relevant interest in the Leigh Creek Energy shares held by Allied Resource Partners
Pty Ltd. Attached is the amended Annual Report reflecting the correction.
For further information contact:
Justyn Peters
Executive Chairman
Leigh Creek Energy
Ph: (08) 8132 9100
About Leigh Creek Energy
Leigh Creek Energy Limited (LCK) is an emerging gas company focused on developing its Leigh Creek Energy
Project (LCEP), located in South Australia. The LCEP will produce high value products such as methane and
fertiliser from the remnant coal resources at Leigh Creek utilising In Situ Gasification technologies, and will
provide long term growth and opportunities to the communities of the northern Flinders Ranges and South
Australia.
The Company is committed to developing the LCEP using a best practice approach to mitigate the technical,
environmental and financial project risks to as low as can be reasonably achieved.
Page 1 of 1
For personal use only
2015
ANNUAL REPORT
1 s t J u l y 2 0 1 4 t o 3 0 t h J u n e 2 0 1 5
L e i g h C r e e k E n e r g y L i m i t e d
AC N 1 0 7 5 3 1 8 2 2
( f o r m e r l y M a r a t h o n R e s o u r c e s L i m i t e d )
For personal use only Leigh Creek Energy Limited
ACN 107 531 822
(formerly Marathon Resources Limited)
Annual Report
1st July 2014 to 30th June 2015
Corporate Directory
Directors
EXECUTIVE CHAIRMAN
NON-EXECUTIVE DEPUTY CHAIR
Daniel J Peters
Peter Williams
David K Shearwood MANAGING DIRECTOR
Christopher Schacht NON-EXECUTIVE DIRECTOR
NON-EXECUTIVE DIRECTOR
Gregory English
Company Secretary
Stuart Appleyard (Retired 16 September 2015)
Jordan Mehrtens (Appointed 16 September 2015)
Registered & Principal Business Office
Level 11, 19 Grenfell Street
Adelaide South Australia 5000
Bankers
Commonwealth Australia Bank
96 King William Street
Adelaide South Australia 5000
Principal Lawyers
Watsons Lawyers
Ground Floor
60 Hindmarsh Square
Adelaide South Australia 5000
Auditors
Grant Thornton South Australian Partnership
Level 1 67 Greenhill Road
Wayville SA 5034
Share Registrar
Computershare Registry Services Pty Ltd
Level 5, 115 Grenfell Street
Adelaide SA 5000
Investor enquiries: 1300 556161
International: +61 3 9415 4000
Leigh Creek Energy Limited
(formerly Marathon Resources Limited)
ABN 31 107 531 822
PO Box 12
Rundle Mall SA 5000
Telephone: 08 8132 9100
Facsimile: 08 8231 7574
contactus@lcke.com.au
www.lcke.com.au
Competent person statement: The information in this report relating to exploration results is based on information compiled by Mr Troy Turner who is a member of the
Australasian Institute of Mining and Metallurgy and is a full time employee of Xenith Consulting Pty Ltd. Mr Turner is a qualified geologist and has sufficient experience
which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking, to qualify as Competent Person as
defined in the 2012 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves.” Mr Turner consents to the inclusion in
the report of the matters based on the information, in the form and context in which it appears.
Forward looking statements: This report contains forward looking statements which are subject to known and unknown risks, uncertainties and other factors that could
cause the actual results, performance or achievements of the Company to vary materially from those expressed or implied in such forward looking statements. Leigh
Creek Energy Limited does not make any representation or warranty as to the accuracy or likelihood of fulfilment of any forward looking statement, or any events or
results expressed or implied in any forward looking statement. The forward looking statements reflect views held only as at the date of the Report.
For personal use only
Contents
Contents
Corporate Directory .......................................................................................................................................................2
Chairman’s Letter ..........................................................................................................................................................4
Managing Director’s Report...........................................................................................................................................6
Chief Financial Officer’s Report.....................................................................................................................................8
Directors' Report (including Director's Review of Operations).....................................................................................18
Corporate Governance Statement ..............................................................................................................................26
Director's Declaration ..................................................................................................................................................26
Auditor's Independence Declaration............................................................................................................................27
Financial Statements ...................................................................................................................................................28
Notes to Financial Statements ....................................................................................................................................32
Independent Audit Report ...........................................................................................................................................51
Shareholder Information ..............................................................................................................................................54
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Chairman’s Letter
CHAIRMAN’S LETTER
It is with much pleasure that I am able to update and address the Leigh Creek Energy (LCK)
shareholders in this annual report as efforts to develop the Leigh Creek Energy Project
(LCEP) start to ramp up.
Our decision to focus our project in South Australia (SA) was well founded as we are
fortunate to be operating in an environment where the support from senior politicians and
throughout government departments has been tremendous: they set an example other
states should follow. SA has a publicly enunciated supportive stance on In Situ Gasification
(ISG) through the government publication “Roadmap to Unconventional Gas Projects” and in
the SA Petroleum and Gas Legislation. SA has been independently ranked as one of the
best places in the world to conduct energy exploration and development (source: Fraser
Institute, Global Petroleum Survey 2014).
With regard to the planned closure of the Leigh Creek Coal Mine, associated railway and the
Port Augusta Power Station, we are very mindful of the impact on Regional SA with job
losses in the regional communities of Leigh Creek and Port Augusta. I am pleased to be
able to inform you that LCK is working with various government departments and community
organisations as well as public and private companies in an attempt to accelerate our own
efforts to help create an industrial and mining hub at Leigh Creek. The successful
commercialisation of the LCEP is key to all of these developments. In anticipation of
commercial gas production from the LCEP, we have progressed discussions with several
local projects and have signed:
• A Heads of Agreement with AET Investments (AETI). This is in anticipation of the
planned establishment of an ammonium nitrate plant which would use non pipeline
waste gases (nitrogen and hydrogen) from the LCEP to manufacture fertilisers to
service the demands of SA farmers and ammonium nitrate (explosives) to be used at
SA mines and quarries for their bulk blasting needs. Fertiliser and ammonium nitrate
are presently fully imported into SA. Our local farmers are presently burdened with
shipping, storage and freight costs as well as price volatility, shortage of supply and
generally higher prices when compared with other farming regions. LCEP derived
fertiliser should reduce some of these cost burdens for SA farmers. AETI also wishes
to establish a blasting accessories assembly plant within the next 6 to 12 months at
Leigh Creek which is expected to create 11 jobs.
• A Heads of Agreement with Archer Exploration Limited (AXE) which is aimed at
establishing a magnesia plant adjacent to the LCEP (within 20km of the Leigh Creek
Coal Mine) which could use gas, electricity and waste heat generated by the LCEP. It
is our aim to develop this complementary project turning magnesite rock (magnesium
carbonate - MgCO3) into value added Magnesia (MgO). This process requires large
amounts of energy. Magnesia is used in a myriad of ways including refractories,
animal feed and environmental remediation of acidic waste and soils. This project
has been extensively examined and had a number of feasibility studies conducted on
the resource. Whilst the grade and quantity of the magnesite rock is world class, the
single biggest obstacle to commercial viability has been the cost of electricity, gas
and heat. The LCEP can provide electricity, gas and heat at a price that makes the
magnesite project viable. AXE is also investigating an intermediate step whereby it
exports magnesite rock via the facilities at the existing Leigh Creek Coal mine,
including the rail network, to existing magnesia processing facilities offshore.
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We are also working closely with Alinta Energy in an effort to come to a positive outcome
with regards to medium and long term issues associated with the closure of the Leigh Creek
Coalfield in an attempt to minimise regional job losses. Whilst it is unfortunate that Alinta has
decided to close the operations, they have been extremely accommodating and incredibly
supportive to us in the hope we will contribute to a new future for Leigh Creek. Alinta has
stated that coal mining at Leigh Creek is planned to cease in the near future, however we
are planning to drill within the active coal operation in the near term. Rehabilitation of the site
will see Alinta’s presence in the region continue for some time with remediation and closure
work likely to extend into 2016/17.
Once the LCEP starts production of gas and subsequently fertilisers, and assuming
additional projects have been attracted to the Leigh Creek area, we believe that we can
offset the job losses from the mine closure and likely even see sustainable growth of Leigh
Creek and the surrounding regional areas for another 30 years. Our efforts today are aimed
at attracting jobs in the intervening period (2016) until full field construction and production of
gas commences which is planned for 2018-19.
Operationally, it is pleasing to watch the core professional team at LCK expand and deliver
the necessary geological work, stakeholder engagement, environmental base line studies,
engineering design work and the gas marketing required to deliver the LCEP. The present
downturn in the mining and energy industries has afforded us the opportunity to attract
excellent experienced professionals and it is great to see the company grow with a mixture
of young enthusiastic people and older, more experienced heads.
As part of the process of strengthening the board with members with suitable skill sets we
are very pleased to have Mr Greg English join as a non-executive director. Mr English is
both a mining engineer and lawyer and he has worked at Leigh Creek. His legal experience
includes energy industry construction, pipeline and production contracts. It is our intention to
maintain a board where there is a majority of independent non-executive directors.
Finally, there is a lot of work that needs to be undertaken over the next 12 months to
consolidate a strong foundation for our success and I look forward to sharing that progress
with you at the pending Annual General Meeting (AGM) and over the year ahead.
Justyn Peters
Executive Chair
LEIGH CREEK ENERGY LIMITED | ANNUAL REPORT 2015 | ACN 107 531 822
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LEIGH CREEK ENERGY LIMITED | ANNUAL REPORT 2015 | ACN 107 531 822 For personal use only Managing Director’s Report
Managing Director’s Report
MANAGING DIRECTORS REPORT
I am excited to be sharing LCK’s progress with you all at this time of rapid growth.
Background
On 27 May 2015 the shareholders of Marathon Resources Limited voted in favour of the
acquisition of ARP TriEnergy Pty Ltd which owns the Leigh Creek Energy Project (LCEP)
located within PEL 650 in South Australia. The Company was relisted on the Australian
Stock Exchange (ASX) on 3 July 2015.
At an Extraordinary General Meeting on 28 August 2015 shareholders voted overwhelmingly
in favour of the change of name to Leigh Creek Energy Limited - LCK. This provides a new
start for the Company and best describes our core focus. The ASX code is LCK.
In a further reflection of our rapid growth we relocated our offices to the CBD of Adelaide in
September 2015, to new premises with sufficient space to house us for the foreseeable
future.
The timing of relisting means that the vast bulk of what follows took place after the June 30,
2015 balance date. However given the rapid development of the Company in recent months
it is appropriate to detail these events.
LCEP Rationale
LCK is developing the LCEP with the initial objective of producing sales gas for delivery into
the supply constrained gas market in the Eastern Australian States. The gas will be
produced via In Situ Gasification (ISG) (ISG is discussed further below). Production of
ammonia and its secondary products including fertilisers and blasting agents from the waste
energy gases will commence as soon as practicable after commencement of operations.
The LCEP has a number of distinct advantages as it is located on an existing mine site, has
access to existing infrastructure, is supported by a positive political and regulatory regime, a
skilled local workforce, and significant historical work has been completed on both the
geology and ISG suitability.
Once commercial production has been achieved then LCK will proceed to develop further
value adding initiatives e.g. the
production of fertiliser from LCK
waste products.
or
natural
in short supply
This is an opportune time to be a
supplier to the gas markets. Gas
gas)
(methane
in
remains
eastern Australia, driven by the
recently
rise
started
be
to
completed new liquefied natural
gas
located
at Gladstone
in Queensland
(See Figure 1).
in demand by
soon
(LNG) projects
and
Figure 1: Queensland domestic gas demand and projected gas demand for
LNG exports. (Queensland Department of Energy and Water Supply,
2012 Gas Market Review).
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Total gas demand across the interconnected gas networks of South Australia, Victoria, New
South Wales, Queensland and Tasmania was 740 PJ in 2012. The three committed
projects, with six LNG trains (a liquefied natural gas plant's liquefaction and purification
facility), will require a minimum of 1,518 PJ of gas per annum – a total demand representing
a threefold increase over the 2012 demand on the east coast.
The supply situation is expected to become extremely tight, being further exacerbated by the
ongoing depletion of easily recoverable conventional gas supplies in Australia. This tight
supply situation is evidenced by the fact that some major industrial users of gas have
already reported that they are unable to secure domestic gas supply contracts during the
period 2015-2020 at any price.
From a macro perspective, with current proved plus probable (2P) conventional reserves
limited to around 7,000PJ it is clear that unconventional gas will be the driving force of future
expansions (note that currently coal seam gas (CSG) supplies approximately 80% of the
Queensland market). The costs of unconventional gas are higher than conventional gas. The
current cost of CSG is around $4.40 -
$5.60/GJ and is expected to rise to a
level of around $7/GJ at a 2P reserve
level of 80,000PJ.
With
tight
restricted demand and
supply, prices are expected to rise
significantly. The medium forecast for
long
is $10/GJ
term gas price
(gigajoule) as shown in Figure 2.
From an LCK perspective this
compares to expected production
costs of less than $3/GJ. LCK expects
to be a low cost producer in a tight market
with rising prices. This is a niche that offers
LCK the opportunity to create a long and
prosperous future.
Financial Result
Figure 2: Range of Queensland long-term ex-field gas contract
price outcomes ($/GJ).(Queensland Department of Energy and
Water Supply, 2012 Gas Market Review).
The accounting rules for reverse takeovers require the accounts to be presented as if ARP
TriEnergy were the parent. This requirement, and the requirement to measure the
transaction value at the date of final completion of the transaction (June 29, 2015), results in
a current year accounting loss of $17.6 million. I refer you to the CFO’s Report for more
details.
Summary
In conclusion, I would like to thank our people for their commitment and efforts throughout a
difficult year. Their efforts have laid the foundation for all that is to come and I look forward to
an exciting and prosperous future for Leigh Creek Energy Limited as we rapidly develop the
Leigh Creek Energy Project.
David Shearwood
Managing Director
LEIGH CREEK ENERGY LIMITE D | ANNUAL REPORT 2015 | ACN 107 531 822
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LEIGH CREEK ENERGY LIMITED | ANNUAL REPORT 2015 | ACN 107 531 822 For personal use only CFO Report
Chief Financial Officer’s Report
CFO REPORT
Explanation of accounting loss
The audited financial statements for Leigh Creek Energy Limited (ASX: LCK) (“LCK” or
“Company”) for the year ended June 30, 2015 show a loss of $17.6m, including transaction
costs of $16.7m as a result of applying reverse acquisition accounting. Having regard to the
magnitude of this item a further explanation is warranted.
The transaction costs represent a non-recurring non-cash item.
The transaction costs arise due to the basis of measurement of the reverse acquisition
(transaction) undertaken during the year.
From an accounting standpoint, ARP TriEnergy Pty Ltd acquired 100% of LCK. The
transaction costs represent the excess of the deemed value of LCK over the net assets
acquired. They arise largely due to the rise in the share price of LCK between December
2014, when the terms were broadly agreed, and June 2015 when the transaction was
completed. This is explained further below:
• A non-binding term sheet for the transaction was announced to the market on
December 1, 2014 when the LCK share price was 2.8 cents. At this time the terms of
the transaction were substantially settled. The key terms remained largely
unchanged from this point on.
• The net assets from the Leigh Creek Energy accounts published as at December 31,
2014 were $3.0m (this was before the name change when the company was called
Marathon Resources Ltd). Using this figure to approximate the net assets purchased
at the time the term sheet was concluded would have been reflected in the financial
statements as:
Approximate Transaction Costs at December 31, 2014
Deemed value of LCK (92.2m shares at 2.8 cents)
Net assets acquired (approximated from the published
accounts)
Gain on acquisition
$m
2.6
3.0
0.4
• Under the accounting standards the deemed value of LCK is measured at final
completion (June 29, 2015). At this time the LCK share price had risen to 20 cents.
As a result the actual transaction costs were recorded as:
Transaction Costs Recorded at June 30, 2015
Deemed value of LCK (92.2m shares at 20 cents)
Net assets acquired at June 29, 2015 (date of completion)
Transaction costs recognised in the June 30, 2015 audited
financial statements
$m
18.4
1.7
16.7
In summary:
• The bulk of the transaction costs recorded in the accounts result from the timing of
the calculation of the deemed value of LCK and the share price movement over the
period in question; and
• The transaction costs are a non-recurring non-cash item. They do not impact the
future development potential of LCK’s projects.
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Tax Losses
LCK had accumulated tax losses of approximately $38.9 million prior to the reverse
takeover. These have not yet been brought to account due to insufficient certainty that LCK
will generate future taxable profit against which these losses may be utilised.
Tax Losses
When LCK achieves profitability it is expected that these tax losses will be available to be
utilised.
LCK had accumulated tax losses of approximately $38.9 million prior to the reverse
takeover. These have not yet been brought to account due to insufficient certainty that LCK
will generate future taxable profit against which these losses may be utilised.
Phil Staveley
When LCK achieves profitability it is expected that these tax losses will be available to be
Chief Financial Officer
utilised.
Phil Staveley
Chief Financial Officer
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OPERATIONS REPORT FROM THE MANAGING DIRECTOR
Operations Report from the Managing Director
Operations Report from the Managing Director
LEIGH CREEK ENERGY PROJECT (LCEP)
The LCEP effort continues to grow, with seven main focus areas being:
1. Safety;
2. Environmental;
3. Geological;
4. Technical (ISG);
5. Stakeholder Engagement;
6. Downstream products (eg. fertilisers and blasting agents); and
7. Gas marketing.
Safety
LCK is currently in the process of implementing safety protocols and systems with the
aim of zero harm so that we can return our workforce, contractors and visitors home
safely at the end of each day.
Safety is obviously a lot more than reporting statistics. We are striving to create a safety
culture where there is a real understanding and determination to combine the safety
objectives with corporate responsibility as well as individual vigilance. We have been
focused on safety since the earliest part of our planning.
In a reflection of the importance we place on zero harm LCK’s Manager of Health
and Safety, Mr Les Smith, reports directly to the Board.
Our safety personnel have been working closely with Alinta Energy as we progress
efforts and planning for the LCEP. We have the unusual situation of working within our
own safety systems which must be aligned within the responsibilities of Alinta Energy’s
safety systems as they are presently an operating mine site.
Environmental
The LCEP is located outside
the Great Artesian Basin
(GAB) on an existing coal
mine site where water at
depth is saline. Coal mining
on
the Leigh Creek Coal
Mine has been undertaken
the
continuously
1940’s, until recently by SA
government authorities.
since
As such it has advantages over many other project sites:
Figure 3: Retention Dam at Leigh Creek.
•
•
there is a wealth of historical information available; and
the location has significant land disturbances as a result of historic mining.
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Base level data gathering is fundamental to our understanding of the local environment.
This is now underway and will align with analysis of the vast amount of regional and site
specific work that has been previously undertaken. At the mine site numerous studies
have been undertaken and monitoring continues.
Geological
is expected
Appraisal drilling is expected to commence in late 2015 to
testing and
reaffirm historic drilling, rock and coal
geophysics. This drilling programme
to
provide sufficient information to provide a JORC 2012 coal
resource. In addition it will test the lateral and depth
extents of the coal seams which have not previously been
assessed. We refer to this program as appraisal drilling
because there has been prior drilling and extensive
geophysical seismic surveys which we have reprocessed.
Essentially we are modernising data and mapping the
extent of coal available.
We intend, once JORC compliant coal resources are
established, to have the gas resources independently
compiled in support of gas marketing and project planning
efforts.
The planned well sites for the current round of drilling are shown in figure 5 below. The
red lines represent historic 2D seismic lines which have been reprocessed.
Figure 4: Employee examining the
coal at Leigh Creek.
Figure 5: Well locations and reprocessed seismic lines.
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Figure 6 is an example of one reprocessed seismic line. The darker areas represent
stratigraphic units in the subsurface to be targeted during drilling.
Figure 6: LCEP Reprocessed seismic line LC78B (1978).
Drilling will include first a narrow chip hole to clearly identify depth to various rock layers
and depths to coal seams using downhole geophysics, followed up by an adjacent
chipped then cored hole to accurately obtain core samples from the roof, coal seam and
floor rocks. This is a low risk means of obtaining the information we require.
Technical (ISG)
LCK has recently appointed Mr Justin Haines (formerly with Carbon
Energy Limited) as General Manager Technical.
Mr Haines is an experienced practitioner of ISG and is well placed to
direct the necessary bottom up design work to demonstrate ISG as he
oversees detailed design of the planned commercial ISG project.
Mr Haines is building the engineering and environmental teams which
are working together on engineering design, logistics and government
approvals for the Stage 1 - ISG gas flaring demonstration as well as
early work on the Stage 2 ISG full field commercialisation. He will also
oversee the geological work program.
Figure 7: Mr Haines
A prior study of Leigh Creek coal by Golder Associates confirmed the suitability of the
deposit for ISG. Planned test work is aimed to reaffirm historic ISG suitability test work
and provide up to date technical parameters which will be inputs into the ISG gasifier
design for Stage 1 gas production and later the Stage 2 ISG commercial project.
Stakeholder Engagement
Achieving a “social licence” to operate is an important aspect of the LCEP development.
We have now formally commenced wide ranging stakeholder engagement efforts and
will soon become more public with our profile. These efforts range across a number of
different stakeholder groups with each group being managed by those best placed to
interact with various parties:
Landowners - indigenous and pastoral;
•
• Regional communities;
• Government - State, federal and local (politicians, government departments,
committees and their service providers);
Investors (existing and potential); and
•
• Gas customers.
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Fertiliser
In the long term there is potential to develop a fertiliser plant which utilises waste products
the LCEP
from the LCEP. This option will only be developed subsequent
reaching commercial production. LCK recently signed a Heads of Agreement with
AET Investments (AETI), as referred to in the Chairman’s address. This is important
both as a risk diversification strategy and also because it represents a significant
value adding opportunity.
to
CORPORATE SUPPORT
In order for the LCEP to be successful we must also be successful in our functions in the
corporate area. Key corporate support efforts for the LCEP include Gas Marketing and
Investor Relations. The General Manager Commercial, Mr Garry Marsden (formerly at
AWE Limited and Oil Search Limited), has joined the team and is presently focussed on
gas marketing and the design and implementation of a regular investor relations program.
Gas Marketing
Gas marketing has a number of objectives at this stage of the LCEP including:
1. Seek to provide long term gas contracts to South Australian manufacturers
who are likely to have difficulty obtaining secure gas supply. This helps
support jobs in our local community;
2. Seek to partner with a major, or group of major, gas customers to option the
gas output from the LCEP.
The second objective will allow project planning to marry the ramp up of gas production to
meet customer needs. In addition, it is intended that gas option payments, likely linked to
project milestones, will support funding needs going forward. We anticipate achieving this
by offering to secure significant customer gas needs at a modest discount to the expected
future wholesale gas price.
Investor Relations
There are two key investor relations focusses:
• Support
the information needs of existing shareholders; and
• Educating a wider potential shareholder base.
Regular meetings with current and potential investors allows them to better understand our
people, our goals and our achievements.
Investors, including institutional investors, will put LCK on their radar as a potential
investment, subject only to the market capitalisation and their view of value. We are
targeting Australia, USA/Canada and the UK for institutional support.
The focus on North America provides exposure to investors who are knowledgeable in
the energy space and who have witnessed the gains from modest sized early
practitioners in the shale gas boom who were often taken over by major energy
companies seeking a new arm to their businesses.
There is no intention to dual list as many North American and UK funds can invest directly
into Australian listed shares. We have witnessed numerous dual listings over the years
and believe many served only to increase corporate overheads as investing participants
traded shares in the most liquid domicile.
LEIGH CREEK ENERGY LIMITED | ANNUAL REPORT 2015 | ACN 107 531 822
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on
Shares in escrow (for 1 to 2 years) make up 60% of the shares on issue. This is the main
cause of the low liquidity (approximately 0.5% to 1.1% of total shares traded per month
the
based
trading
limited
relisting).
since
of
lack
This
typically
liquidity
can cause, on
occasion,
extreme volatility
in the share price.
The low liquidity
of the Company’s
shares,
caused
by the tight share
registry, means
that
any
institutional
interest
the
in
Company may be
difficult to readily fulfil.
Figure 8: LCK share price chart.
Our fundamental belief is that, if the Company has good prospects and that these are well
communicated, then the share price will reflect the underlying value and potential in the
longer term.
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Operations Report from the Managing Director con’t
IN SITU GASIFICATION
A description of ISG is provided below to assist stakeholders to better understand
our business.
Surface Coal Gasification and In Situ Gasification
Surface gasification of coal was originally used for making town gas. The first commercial
gasification was used in the 1800’s for industrial and residential heating and lighting.
In gasification, a thermo-chemical process takes place, rather than burning coal directly,
to break down the coal into its basic chemical constituents. In modern gasifiers the coal is
typically exposed to air or steam and oxygen under high temperatures and pressures.
Under these conditions, molecules in the coal break apart, initiating chemical reactions
that produce a syngas, typically a mixture of carbon monoxide, hydrogen and other
gaseous compounds.
ISG and surface gasification can each be used to produce similar syngas that have
identical downstream uses.
Gasifying the coal in situ (underground) allows the energy extraction from large coal
resources that are not economically or technically recoverable by conventional mining
techniques. The hazards related to conventional mining are also reduced. Surface
disruption is minimised and handling of solid materials is eliminated i.e. coal and ash
handling at the surface is not required. ISG consumes less surface water and generates
less atmospheric pollution compared to surface gasification. Capital investment costs and
syngas production costs are also less than surface gasification.
What is In Situ Gasification (ISG)?
Whilst ISG technology has been known since the 1800’s, it was first adopted
commercially in the Soviet Union during the 1930’s and remains in use there today at the
Angren plant in Uzbekistan which feeds a power generation plant. Recent advances in oil
and gas technologies (notably directional drilling and computer-based process control)
have combined to further enhance ISG to become more commercially attractive.
The ISG process occurs in deep (generally greater than 300m) coal seams (in situ). By
creating the right process conditions (pressure, temperature, presence of oxygen or air,
and sometimes steam) in the coal seam, a series of chemical reactions occur, which
results in the gasification of the coal. Under this process the solid coal breaks apart into
its component gases to produce a synthetic gas (syngas). ISG syngas is typically
comprised of varying amounts of hydrogen, carbon monoxide, and methane plus other
gaseous compounds.
The process is controlled via the injection of air or oxygen into the coal seam. These are
introduced to the seam via an injection well that is drilled vertically and then horizontally
into the coal seam. The injection well is connected to surface facilities including the air,
oxygen and steam supply equipment.
The syngas is extracted through production wells drilled in the coal seam to the surface
where the gas is cleaned for use in downstream processes or direct sale.
To facilitate flow through the injection well, gasification zone and production wells, a “link"
needs to be created to enhance the in situ permeability of the coal seam. This is best
achieved by directional drilling which creates a void along which gases can travel.
While the precise method to be utilised at the LCEP will be finalised during the front end
engineering design phase of the project development work, based on preliminary work, it
is anticipated that the establishment of the channel between the injection well and the
production well will be achieved by drilling a horizontal hole. Later, heating of the coal at
15
LEIGH CREEK ENERGY LIMITED | ANNUAL REPORT 2015 | ACN 107 531 822 For personal use only
Operations Report from the Managing Director
Operations Report from the Managing Director con’t
various locations along the drill hole is likely to utilise the Continuous Retraction Injection
Point (CRIP) method. This method has been proven at several ISG trial sites and is
widely considered to be the preferred method for efficient production of syngas from
underground coal seams.
In the CRIP process, the production well is drilled vertically and the injection well is drilled
using standard oilfield directional drilling techniques in order to connect the wells
as shown in Figure 9 below.
Figure
9:
ISG
Process.
Once the channel is established and the coal heated, a gasification cavity is initiated at the
end of the oxygen (or air) injection well in the horizontal section of the coal seam. When the
coal near the recently created cavity is consumed, the injection point is retracted, and a new
gasification cavity initiated. In this manner, precise control over the progress of the
gasification is obtained which leads to a more consistent gas composition.
Once brought to the surface via the production wells the syngas is first separated and
processed and is then available for use either:
•
•
•
•
for sale to gas customers (after separation of methane from the syngas);
as feedstock for power stations;
as ammonium nitrate (for the production of fertiliser and explosives); or
for conversion to liquid fuels.
The method of processing the syngas will depend upon the composition of the gas and the
end product that the Company ultimately aims to produce.
Brief history of ISG
ISG was first proposed in the 1800’s. The most significant development experience has
been gained in the former Soviet Union commencing in the 1920’s (although interrupted by
the Second World War).
16
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LEIGH CREEK ENERGY LIMITED | ANNUAL REPORT 2015 | ACN 107 531 822
LEIGH CREEK ENERGY LIMITED | ANNUAL REPORT 2015 | ACN 107 531 822 For personal use only Operations Report from the Managing Director con’t
Following the discovery of cheap oil and natural gas throughout Russia in the 1970’s and
1980’s, the ISG development operations were generally scaled back as being unnecessary
and uneconomic in comparison to the abundant cheap natural gas available at the time.
Following the break-up of the former Soviet Union only Kemerovo, in the Kuzbass region of
Russia and the Yerostigaz station in Angren, Uzbekistan continued to operate, each
producing up to 4 billion cubic metres of syngas per annum. The Kemerovo operation closed
in 1996, leaving the Yerostigaz operation, located in Angren in Eastern Uzbekistan which
had commenced its operations in 1961 as the only commercially operating ISG operation.
(www.yerostigaz.com). Syngas produced at Angren is used to produce electricity for the city
of Angren.
In conclusion, whilst the ISG technology is proven, it is yet to be adopted on a commercial
scale in the western economies. This gives LCK a distinct first mover advantage and the
ability to monetise that advantage in the coming years.
17
LEIGH CREEK ENERGY LIMITED | ANNUAL REPORT 2015 | ACN 107 531 822 For personal use only
Director’s Report
LEIGH CREEK ENERGY LIMITED
ACN 107 531 822
DIRECTORS’ REPORT
Leigh Creek Energy Limited (previously Marathon Resources Limited) (“the Company” or “Leigh Creek Energy”) is a
public company incorporated and domiciled in Australia and listed on the Australian Securities Exchange. The Company
changed its name from Marathon Resources Limited to Leigh Creek Energy Limited following approval from shareholders
at a General Meeting held on 28 August 2015.
The directors present their report on the group which comprises Leigh Creek Energy Limited and its controlled entities
(“Group”) for the year ended 30 June 2015.
DIRECTORS
The names of the directors in office at any time during or since the end of the year are:
Peter Williams
(appointed 21.05.2004)
Christopher Schacht (appointed 24.01.2008)
(appointed 30.06.2008)
John G. Linley
Christopher Ryan (appointed 26.02.2014)
Daniel Justyn Peters (appointed 28.11.2014)
David Shearwood (appointed 27.05.2015)
(Resigned 28.05.2015)
(Not reappointed at 2014 AGM)
Directors have been in office since the start of the financial year to the date of this report unless otherwise stated.
INFORMATION ON CONTINUING DIRECTORS
Daniel Justyn Peters – LLB, BA (politics/jurisprudence) GDLP – Executive Chairman
Mr Peters joined Linc Energy soon after its IPO. At the time Linc Energy was the world leader in ISG. In his 6 years at Linc
Energy Mr Peters held the positions of General Manager Environment and Government Relations, General Manager
Business Development, Executive General Manager Nth Asia and finished as Executive General Manager of Investor
Relations. His experience across a broad range of business units within Linc Energy will prove invaluable in developing
the Leigh Creek Energy project.
Previously Mr Peters was employed at the Queensland EPA as head of investigations and Compliance and then acting
Director of Central and Northern Regions. He managed the integration of the environmental regulation of Qld Mining
Industry into the EPA.
Peter Williams BEc, FCA – Deputy Chairman
Peter Williams a Chartered Accountant with extensive professional and commercial experience. He has broad experience
as a Managing Director and Chairman of public companies. He was a partner of Deloitte for 17 years and Managing
Director of the Lloyd Helicopter group then Enterprise Solutions Asia Pacific Limited. Since then he has acted as a non-
executive director of venture capital company Playford Capital Pty Ltd. He is a member of the Company’s Audit
Committee.
David Shearwood – B. Eng (Mining Hons) - University of Sydney (1984), Grad Dip in App Fin (SIA) (2000), Prof Dip
HR (AHRI) (2006) – Managing Director
Mr Shearwood has 29 years’ experience as a fund manager, strategist and investment banker at firms including Macquarie
Bank, Westpac, QBE Insurance, Atom Funds Management, Du Pont and Rio Tinto. He founded Atom and developed a
captive Australian equities research firm in Bangalore, India, to support the business in Australia which concentrated on
small company investments. Mr Shearwood has travelled the world investigating mining, energy and infrastructure
opportunities. Mr Shearwood was one of the earliest fund managers in Australia to invest in the ISG industry. He has
achieved top quartile performance as a fund manager and analyst across various sectors during his career with an
emphasis on mining energy and infrastructure.
In addition to the 186,772 ordinary shares registered in Mr Shearwood's name, Mr Shearwood has a relevant interest in the
104,767,190 ordinary shares in Leigh Creek Energy held by Allied Resource Partners Pty Ltd due to Mr Shearwood owning
22.47% of the issued capital of Allied Resource Partners Pty Ltd.
Christopher Schacht – FAICD - Non-Executive Director
Christopher Schacht is a qualified teacher who entered political service in the 1970’s as a ministerial advisor to both SA
State Government and to the Federal government. Mr Schacht served in the Senate of the Federal Parliament for 15 years
until 2002. During his time as a Minister from 1993 to 1996, he held the portfolios at various times of Science, Small
Business, Customs and Construction. Currently, a self-employed consultant, advisor and investor Mr Schacht was a board
member of the Australian Volleyball Federation from 1996 to 2014 and was a member of the University of Adelaide
Council from 2012 to 2014.
He is Chairman of the Australia China Development Company Pty Ltd, Chairman of Greenhouse Gas Monitor Australia
Pty Ltd and Chairman of Soundstream Collective. He is the Chairman of the Company’s Audit Committee.
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Director’s Report con’t
Director’s Report con’t
COMPANY SECRETARY
Stuart Appleyard LLB
Appointed 28 January 2004
Stuart Appleyard is a practising lawyer with extensive experience in corporate, commercial and property law. A consultant
with Lynch Meyer, Lawyers, he has a particular focus on complex commercial agreements, joint ventures, property
advising and development, and due diligence associated with those areas. He has advised on mining, resource and native
title issues in both South Australia and the Northern Territory. He is secretary of the Company’s Audit Committee. From
the 1st July 2015 he continued on as secretary in a consulting rather than salaried capacity.
CORPORATE GOVERNANCE
The Board of Leigh Creek Energy Limited is committed to achieving and demonstrating the highest standards of corporate
the ASX Corporate
governance
Governance Recommendations. The Corporate Governance comment is noted on page 26.
accordance with
practices
adopted
policies
and
and
has
in
AFTER REPORTING DATE EVENTS
The Company changed its name from Marathon Resources Limited to Leigh Creek Energy Limited following approval from
shareholders at a General Meeting held on 28 August 2015. Registration of the change of name was effected by the
Australian Securities and Investments Commission (ASIC) on August 31, 2015. For purposes of the Company’s ASX
listing, the new code for Leigh Creek Energy Limited is LCK with effect from Thursday September 3, 2015.
There are no after reporting date events of consequence.
PRINCIPAL ACTIVITIES
The principal activity of the Group was mineral, energy and coal exploration. The Board conservatively utilised available
funds in its continuing review of mining and energy opportunities which met strategic objectives for consideration by the
shareholders and ASX. Because of the depressed nature of the resource industries, several other non-resources
opportunities were presented and assessed by the Board.
REVIEW OF OPERATIONS AND OPERATING RESULTS
The Director’s Review of Operations included in the Company’s 2014 Annual Report indicated the ongoing assessment of
prospects for investment in projects to determine suitable investments for the Company. That assessment continued in
2015 in both resource commodities and non-resource opportunities.
In October 2014, a significant proposal concerning In Situ Gasification of coal (ISG) opportunities in South Australia was
presented and assessed by the Board. A long term forecast shortage of gas in Australia, existing infrastructure and a
proactive regulatory regime highlighted the potential of this technology.
Preliminary investigation and due diligence led to the signing of a Binding Terms Sheet on the 7th January 2015 pursuant
to which Leigh Creek Energy agreed to acquire 100% of ARP TriEnergy Pty Ltd (“ARP TriEnergy”) by the issuing of
138,311,683 new ordinary shares in Leigh Creek Energy (being 60% of the total expanded capital base).
Following additional due diligence Leigh Creek Energy announced on 3rd March 2015 it had signed a share sale
agreement to acquire 100% of ARP TriEnergy from its current shareholders.
Having sought and obtained the relevant regulatory, ASX, Ministerial and FIRB approvals Leigh Creek Energy obtained
agreement of its shareholders to the transaction at a General Meeting on 27th May 2015.
The transaction completed on 29th June 2015 with the issue of 138,311,683 Leigh Creek Energy Shares to the vendors of
ARP TriEnergy at which time they obtained control of Leigh Creek Energy.
Pursuant to the acquisition of ARP TriEnergy, the executive management team of ARP TriEnergy has taken effective
control of the Board of Leigh Creek Energy and its day to day operations.
In assessing the application of AASB3 Business Combinations, Leigh Creek Energy was determined not to meet definition
of a business, however this 2015 Financial Statements have has been prepared using the reverse acquisition principles of
AASB3 Business Combinations.
Accordingly Leigh Creek Energy remains the head legal entity of the Group but the consolidated financial statements are
required to be prepared as a continuation of the financial statements of the acquired ARP TriEnergy (deemed to be the
accounting head entity).
Please refer to Note 1.2 to the Financial Statements for further information.
The consolidated operating loss of the financial year to 30 June 2015 after applicable income taxes was
$ 17,598,147; (2014: Loss of $22).
LEIGH CREEK ENERGY LIMITED | ANNUAL REPORT 2015 | ACN 107 531 822
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Director’s Report con’t
SIGNIFICANT CHANGES IN THE STATE OF AFFAIRS
At the 29 June a significant change occurred in the state of affairs of the Company and Group as set out in the Review of
Operations. The acquisition of the new subsidiary (ARP TriEnergy) has led to the matters outlined in the comments in the
sections entitled “After Reporting Date Events” and “Likely Developments, Prospects and Business Strategies” in this
report.
DIVIDENDS
The Directors do not recommend the payment of a dividend and no amount has been paid or declared since the end of the
previous financial year.
LIKELY DEVELOPMENTS, PROSPECTS AND BUSINESS STRATEGIES
The Board of Leigh Creek Energy looks forward to developing its wholly owned subsidiary ARP TriEnergy’s in situ coal
gasification project at Leigh Creek in South Australia.
An activity notification to commence appraisal drilling at Leigh Creek has been approved by the South Australian
government.
Necessary appraisal drilling to JORC 2012 standards and the subsequent certification of gas resources may likely lead to
interest in advance transactions over future gas production.
The Group may require further capital to sustain its activities.
ENVIRONMENTAL ISSUES
No notification of any breach of any environmental regulation has been received in respect of any of the Company’s prior
exploration activities during the year.
OPTIONS
At the date of this report, the unissued ordinary shares of Leigh Creek Energy Limited under options are as follows:
Grant Date
Date of Expiry
Exercise Price
16.11.2010
01.11.2015
At Grant
$1.75
(1)
Post 2011 Rights
$1.727
Number under Option
(2)
750,000
(1) Following a rights issue in February 2011 unexercised options at that date become subject to an exercise price
reduction.
(2) Pursuant to the reverse acquisition principles existing options are eliminated and replaced as new options based on a
recalculation of the value of the options.
During the year ended 30 June 2015, and to the date of this report no ordinary shares of Leigh Creek Energy Limited were
issued on the exercise of options.
No new options were granted during the year or up to the date of this report.
1,000,000 options expiring on 31.12.2014 at an exercise price of $1.077 each were not exercised and lapsed on that date.
750,000 options expiring on 01.11.2014 at an exercise price of $1.227 each were not exercised and lapsed on that date.
None of the options on issue entitles the holders to participate, by virtue of the options, in any dividend or share issue of
any other corporation.
20
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LEIGH CREEK ENERGY LIMITED | ANNUAL REPORT 2015 | ACN 107 531 822 For personal use only
Directors’ & Executives’ Remuneration - Audited
DIRECTORS’ AND EXECUTIVES’ REMUNERATION – AUDITED
Remuneration Policy
The remuneration policy is designed to align the objectives of the Key Management Personnel with shareholder and
business objectives by providing a fixed remuneration package to non-executive Directors and time based remuneration to
Executive Directors. The Board of Leigh Creek Energy believes the policy to be appropriate and effective in attracting and
retaining the best Directors and Executives to manage and direct the Group, as well as create goal congruence between
Directors, Executives and shareholders.
The Company’s policy for determining the nature and amounts of emoluments of board members and other Key
Management Personnel of the Company is as follows.
The Company’s Constitution specifies that the total amount of remuneration of non-executive Directors shall be fixed from
time to time by a general meeting. The current maximum aggregate remuneration of non-executive Directors has been set
at $500,000 per annum. Directors may apportion any amount up to this maximum amount amongst the non-executive
Directors as they determine. Directors are also entitled to be paid reasonable travelling, accommodation and other
expenses incurred in performing their duties as Directors. The remuneration of the Managing Director is determined by the
non-executive Directors and approved by the Board as part of the terms and conditions of his employment which are
subject to review from time to time.
The remuneration of other executive officers and employees is determined by the Managing Director subject to the
approval of the Board.
Non-executive Director remuneration is by way of fees and statutory superannuation contributions. Non-executive
Directors do not participate in schemes designed for remuneration of executives but they may receive options or bonus
payments subject to shareholder approval and are not provided with retirement benefits other than salary sacrifice and
statutory superannuation.
The Company’s remuneration structure is based on a number of factors including the particular experience and
performance of the individual in meeting key objectives of the Company. The Board is responsible for assessing relevant
employment market conditions and achieving the overall, long term, objective of maximising shareholder benefits through
the retention of high quality personnel.
The Company does not presently emphasise payment for results through the provision of cash bonus schemes or other
incentive payments based on key performance indicators of Leigh Creek Energy given the nature of the Company’s
business as a mineral exploration entity and the current status of its activities. However the Board may approve the
payment of cash bonuses from time to time in order to reward individual executive performance in achieving key objectives
as considered appropriate by the Board.
The Company also has an Employee Share Option Plan, approved by shareholders, that enables the Board to offer
eligible employees options to acquire ordinary fully paid shares in the Company. Under the terms of the Plan, options to
acquire ordinary fully paid shares may be offered to the Company’s eligible employees at no cost unless otherwise
determined by the Board in accordance with the terms and conditions of the Plan. The objective of the Plan is to align the
interests of employees and shareholders by providing employees of the Company with the opportunity to participate in the
equity of the Company as an incentive to achieve greater success for the Company and to maximise the long term
performance of the Company.
As the Company is a mineral exploration entity, in the opinion of the Board, the Company’s earnings and the
consequences of the Company’s performance on shareholder wealth are not related to the Company’s remuneration
policy.
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21
LEIGH CREEK ENERGY LIMITED | ANNUAL REPORT 2015 | ACN 107 531 822 For personal use only
Share-
based
payments
Options
Total
% of
remuneration
consisting of
options
134,351
204,549
10%
29%
Directors’ & Executives’ Remuneration - Audited (cont.)
Directors’ & Executives’ Remuneration - Audited (cont.)
DIRECTORS’ AND EXECUTIVES’ REMUNERATION – AUDITED (continued)
Set out below is a summary of key management personnel remuneration:
Directors’ and Executives’ Remuneration
Settled by Leigh Creek
Energy
Short term benefits
Post employment
benefits
Directors
Fees
Salary
and
wages
Directors
P L Williams
C Zeng (4)
C Ryan (5)
C Schacht
J Linley (6)
D J Peters
2015
2014
2015
2014
2015
2014
2015
2014
2015
2014
2015
2014
49,166
59,167
-
25,492
13,687
13,656
30,833
39,167
27,500
39,167
15,000
-
D Shearwood (7) 2015
2014
Executives
S Appleyard
2015
2014
-
-
-
-
Other
(1)
66,641
80,000
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Super
contribu
tions
Other
short term
benefits
(3)
4,670
5,473
-
-
-
-
2,929
3,653
7,838
9,173
3,800
-
2,177
-
-
-
-
-
-
-
-
-
3,997
-
-
-
-
-
24,996
4,548
18,598
-
-
-
-
-
-
-
-
-
55,000
60,000
25,000
-
22,916
-
30,667
60,092
(2)
13,874
59,909
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
25,492
13,687
13,656
33,762
42,820
94,335
108,340
43,800
-
25,093
-
74,261
64,640
Total
2015
2014
136,186
176,649
133,583
120,092
66,641
80,000
46,410
22,847
22,595
-
13,874
59,909
419,289
459,497
Settled by ARP TriEnergy
D J Peters
D Shearwood
Total
2015
2014
2015
2014
2015
2014
-
-
-
-
-
-
158,866
-
191,850
-
350,716
-
-
-
-
-
-
15,092
-
17,960
-
33,052
-
-
-
-
-
-
-
-
-
-
-
-
-
173,958
-
209,810
-
383,768
-
Notes
(1)
(2)
(3)
The amount of $66,641 (2014 $80,000) represents consulting fees paid to Cluan Capital Management Pty Ltd a
company in which the Deputy Chairman Mr P L Williams has an interest.
The share based payments non cash charge represents the equity compensation recognised during the year and
relates to options granted in November 2010 at an exercise price of $1.727 referred to earlier in page 20 under
options.
The Other Short Term Benefits aggregate amount of $22,595 represents accumulated leave entitlements payable
on resignation of salaried employees. No other benefits were paid.
(4) Mr Zeng was a non executive director prior to his resignation on January 31, 2014.
(5) Mr Ryan was a non executive director prior to his not being reappointed at the 2014 AGM on November 20, 2014.
The amount of $13,687 (2014 $13,656) covering the director’s fees of Mr C Ryan was paid to Westchester
Corporate Finance a business in which Mr Ryan has an interest.
(6) Mr Linley was employed as the Managing Director prior to his resignation on May 28, 2015.
(7) Mr Shearwood was appointed as Managing Director on May 27, 2015.
2222
LEIGH CREEK ENERGY LIMITED | ANNUAL REPORT 2015 | ACN 107 531 822
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-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
LEIGH CREEK ENERGY LIMITED | ANNUAL REPORT 2015 | ACN 107 531 822 For personal use only
Directors’ & Executives’ Remuneration - Audited (cont.)
Related party transactions include:
Related party transactions include:
Related party transactions include:
• An amount of $3,982 payable to ARK Energy Pty Ltd, a company in which Managing Director David
• An amount of $3,982 payable to ARK Energy Pty Ltd, a company in which Managing Director David
• An amount of $3,982 payable to ARK Energy Pty Ltd, a company in which Managing Director David
• An amount of $23,689 payable to Walloon Energy Pty Ltd, a company in which Managing Director David
• An amount of $23,689 payable to Walloon Energy Pty Ltd, a company in which Managing Director David
• An amount of $23,689 payable to Walloon Energy Pty Ltd, a company in which Managing Director David
• An amount of $11,667 receivable from Allied Resources Partners, a company in which Managing
• An amount of $11,667 receivable from Allied Resources Partners, a company in which Managing
• An amount of $11,667 receivable from Allied Resources Partners, a company in which Managing
Shearwood has an interest. The amount is payable by June 30, 2016.
Shearwood has an interest. The amount is payable by June 30, 2016.
Shearwood has an interest. The amount is payable by June 30, 2016.
Shearwood has an interest. The amount is payable by June 30, 2016.
Shearwood has an interest. The amount is payable by June 30, 2016.
Shearwood has an interest. The amount is payable by June 30, 2016.
Director David Shearwood has an interest. This is not subject to any terms, conditions or fixed payment
Director David Shearwood has an interest. This is not subject to any terms, conditions or fixed payment
dates.
Director David Shearwood has an interest. This is not subject to any terms, conditions or fixed payment
dates.
dates.
personally incurred.
personally incurred.
personally incurred.
• Managing Director David Shearwood is due a reimbursement of $6,934 for business expenses
• Managing Director David Shearwood is due a reimbursement of $6,934 for business expenses
• Managing Director David Shearwood is due a reimbursement of $6,934 for business expenses
Options issued
Options issued
Options issued
Options are issued to directors and executives as part of their remuneration. The options are not issued based on
Options are issued to directors and executives as part of their remuneration. The options are not issued based on
performance criteria, but are issued to the relevant directors and executives of Leigh Creek Energy Limited and its
Options are issued to directors and executives as part of their remuneration. The options are not issued based on
performance criteria, but are issued to the relevant directors and executives of Leigh Creek Energy Limited and its
subsidiary to increase goal congruence between executives, directors and shareholders.
performance criteria, but are issued to the relevant directors and executives of Leigh Creek Energy Limited and its
subsidiary to increase goal congruence between executives, directors and shareholders.
subsidiary to increase goal congruence between executives, directors and shareholders.
There were no options issued during the year or up to the date of this report.
There were no options issued during the year or up to the date of this report.
There were no options issued during the year or up to the date of this report.
Included under share based payments expense in the statement of profit and loss of Leigh Creek Energy is $13,874 (2014
Included under share based payments expense in the statement of profit and loss of Leigh Creek Energy is $13,874 (2014
$59,909) which relates to that part of total equity settled share based payments transactions issued in prior years but
Included under share based payments expense in the statement of profit and loss of Leigh Creek Energy is $13,874 (2014
$59,909) which relates to that part of total equity settled share based payments transactions issued in prior years but
recognised as expense over the relevant vesting periods. As a result of reverse acquisition accounting, this expense has
$59,909) which relates to that part of total equity settled share based payments transactions issued in prior years but
recognised as expense over the relevant vesting periods. As a result of reverse acquisition accounting, this expense has
been recognised in the profit or loss of Leigh Creek Energy (previously Marathon Resources) and is recognised as pre-
recognised as expense over the relevant vesting periods. As a result of reverse acquisition accounting, this expense has
been recognised in the profit or loss of Leigh Creek Energy (previously Marathon Resources) and is recognised as pre-
acquisition by the Group.
been recognised in the profit or loss of Leigh Creek Energy (previously Marathon Resources) and is recognised as pre-
acquisition by the Group.
acquisition by the Group.
Contracts of Service
Contracts of Service
Contracts of Service
The employment conditions, tenure and emoluments of the Managing Director and executives are evidenced in writing.
The employment conditions, tenure and emoluments of the Managing Director and executives are evidenced in writing.
The employment conditions, tenure and emoluments of the Managing Director and executives are evidenced in writing.
Termination
Name
Termination
Name
payment
Termination
Name
payment
payment
none
none
none
none
none
none
none
none
none
Duration of Contract
Duration of Contract
Duration of Contract
3 yrs + 1 yr company option1
3 yrs + 1 yr company option1
3 yrs + 1 yr company option
3 yrs + 1 yr company option1
2
3 yrs + 1 yr company option
3 yrs + 1 yr company option
2
Ongoing3
2
Ongoing3
Ongoing3
Executive Chairman
Executive Chairman
Managing Director
Executive Chairman
Managing Director
Managing Director
Company Secretary
Company Secretary
Company Secretary
DJ Peters
DJ Peters
DK Shearwood
DJ Peters
DK Shearwood
DK Shearwood
S Appleyard
S Appleyard
S Appleyard
Period of
Period of
Termination Notice
Period of
Termination Notice
Termination Notice
3 month
3 month
3 month
3 month
3 month
3 month
Position
Position
Position
1. Commenced November 26, 2014.
1. Commenced November 26, 2014.
2. Commenced May 28, 2015.
1. Commenced November 26, 2014.
2. Commenced May 28, 2015.
3. Commenced on listing ongoing on variation from salaried to consulting capacity on July 1, 2015.
2. Commenced May 28, 2015.
3. Commenced on listing ongoing on variation from salaried to consulting capacity on July 1, 2015.
3. Commenced on listing ongoing on variation from salaried to consulting capacity on July 1, 2015.
Number of Options Held by Key Management Personnel
Number of Options Held by Key Management Personnel
Balance
Number of Options Held by Key Management Personnel
Balance
01.07.2014
Balance
01.07.2014
01.07.2014
Daniel J Peters
Daniel J Peters
David Shearwood
Daniel J Peters
David Shearwood
Peter Williams
David Shearwood
Peter Williams
Chris Schacht
Peter Williams
Chris Schacht
John Linley
Chris Schacht
John Linley
Stuart Appleyard
John Linley
Stuart Appleyard
Stuart Appleyard
Total
Total
Total
-
-
-
-
-
1,750,000
-
1,750,000
250,000
1,750,000
250,000
250,000
250,000
250,000
-
250,000
-
-
2,250,000
2,250,000
2,250,000
Granted as
Granted as
Compensation
Granted as
Compensation
Compensation
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Option
Option
Exercised
Option
Exercised
Exercised
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Expired
Expired
Expired
-
-
-
-
-
(1,000,000)
-
(1,000,000)
(250,000)
(1,000,000)
(250,000)
(250,000)
(250,000)
(250,000)
-
(250,000)
-
(1,500,000)
-
(1,500,000)
(1,500,000)
Balance
Balance
30.06.2015
Balance
30.06.2015
30.06.2015
-
-
-
-
-
750,000
-
750,000
-
750,000
-
-
-
-
-
-
-
-
750,000
750,000
750,000
Eliminated*
Eliminated*
Eliminated*
-
-
-
-
-
750,000
-
750,000
-
750,000
-
-
-
-
-
-
-
-
750,000
750,000
750,000
* Pursuant to the reverse takeover unexercised options based on their historical cost base were eliminated but reinstated
* Pursuant to the reverse takeover unexercised options based on their historical cost base were eliminated but reinstated
at a new valuation at the completion of the takeover transaction.
* Pursuant to the reverse takeover unexercised options based on their historical cost base were eliminated but reinstated
at a new valuation at the completion of the takeover transaction.
at a new valuation at the completion of the takeover transaction.
Number of Shares Held by Key Management Personnel
Number of Shares Held by Key Management Personnel
Received as
Number of Shares Held by Key Management Personnel
Received as
Compensation
Received as
Compensation
Compensation
Net Change
Net Change
Other*
Net Change
Other*
Other*
Balance
Balance
01.07.2014
Balance
01.07.2014
01.07.2014
-
-
-
-
-
899,360
-
899,360
61,050
899,360
61,050
1,749,053
61,050
1,749,053
1,749,053
2,709,463
2,709,463
2,709,463
Option
Option
Exercised
Option
Exercised
Exercised
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Balance
Balance
30.06.2015
Balance
30.06.2015
30.06.2015
-
-
186,772
-
186,772
899,360
186,772
899,360
61,050
899,360
61,050
1,749,053
61,050
1,749,053
1,749,053
2,896,235
2,896,235
2,896,235
-
-
186,772
-
186,772
-
186,772
-
-
-
-
-
-
-
-
186,772
186,772
186,772
Daniel J Peters
Daniel J Peters
David Shearwood
Daniel J Peters
David Shearwood
Peter Williams
David Shearwood
Peter Williams
Chris Schacht
Peter Williams
Chris Schacht
Stuart Appleyard
Chris Schacht
Stuart Appleyard
Stuart Appleyard
Total
Total
Total
* Net Change Other refers to shares purchased or sold during the financial year, held prior to appointment, or acquired
* Net Change Other refers to shares purchased or sold during the financial year, held prior to appointment, or acquired
pursuant to completion of the takeover transaction.
* Net Change Other refers to shares purchased or sold during the financial year, held prior to appointment, or acquired
pursuant to completion of the takeover transaction.
At the date of this report there is no known change in the number of shares held by the Key Management Personnel.
pursuant to completion of the takeover transaction.
At the date of this report there is no known change in the number of shares held by the Key Management Personnel.
At the date of this report there is no known change in the number of shares held by the Key Management Personnel.
Page 8
Page 8
Page 8
23
LEIGH CREEK ENERGY LIMITED | ANNUAL REPORT 2015 | ACN 107 531 822 For personal use only
Directors’ & Executives’ Remuneration - Audited (cont.)
Use of remuneration consultants
The Company did not engage remuneration consultants during the year
Voting at 2014 AGM
Of the total valid available votes lodged, Leigh Creek Energy received 97.6% of “yes” votes on its remuneration report for
the 2014 financial year with the motion carried unanimously on a show of hands as an ordinary resolution. The Company
did not receive any specific feedback at the AGM on its remuneration practices.
END OF REMUNERATION REPORT
MEETINGS OF DIRECTORS
During the financial year, the number of meetings held at which a director was eligible to attend and the number actually
attended by each director were:
Board Meetings
Appointed
Meeting Held
Meetings Attended
DJ Peters
Peter Williams
Christopher Schacht
John Linley
Christopher Ryan
DK Shearwood
November 26, 2015
May 21, 2004
January 24, 2008
June 30, 2008
February 26, 2014
May 27, 2015
10
22
22
19
12
3
10
22
22
19
12
3
Audit Committee meetings
Meetings Held
Meetings Attended
Peter Williams
Christopher Schacht (Chairman)
Sam Appleyard
2
2
2
2
2
2
Given the nature of the Company’s business as an exploration entity and the status of its activities during 2015 in a
challenging period for junior explorers matters dealt with by the Board dictated no efficiencies or other benefits would be
gained by having separate audit committee meetings on all occasions in the period under review. Issues relevant to the
integrity of the Company’s financial reporting ordinarily dealt with by an audit committee were dealt with by the full Board
when expedient. The Company has standing agenda items at each Board meeting to deal with audit related matters
normally carried out by the audit committee. In appropriate circumstances the Board sought independent legal and
accounting advice on pertinent aspects. The Company conducted two formal audit committee meetings in the reporting
period.
INSURANCE PREMIUMS AND INDEMNITY
Since the end of the previous year the Company has paid insurance premiums in respect of Directors’ and Officers’ liability
and legal expenses’ insurance contracts.
The terms of the policies prohibit disclosure of details of the amount of insurance cover, the nature thereof and the
premium paid.
The Company has indemnified the directors and executives of the Company for the costs incurred in their capacity as a
director or executive, except where there is a lack of good faith.
PROCEEDINGS
The Company is not currently a party to legal proceedings brought against it or initiated by it at the date of this report.
24
Page 9
LEIGH CREEK ENERGY LIMITED | ANNUAL REPORT 2015 | ACN 107 531 822 For personal use only
Directors’ & Executives’ Remuneration - Audited (cont.)
AUDITOR’S INDEPENDENCE
Grant Thornton South Australian Partnership continues in office in accordance with Section 327 of the Corporation Act.
The auditor has not been engaged during the year for any non-audit services which may have impaired the auditor’s
independence. The auditor’s independence declaration for the year ended 30 June 2015 has been received and is
included in this report.
Signed in accordance with a resolution of the Board.
D J D Peters
Director
D K Shearwood
Director
Dated at Adelaide, South Australia this 3rd day of September 2015
25
Page 10
LEIGH CREEK ENERGY LIMITED | ANNUAL REPORT 2015 | ACN 107 531 822 For personal use only
Corporate Governance Statement
Corporate Governance Statement
CORPORATE GOVERNANCE STATEMENT
The Board of Directors (the Board) of Leigh Creek Energy Limited (the Company) is committed to achieving and
demonstrating the highest standard of Corporate Governance.
The Board guides the affairs of the Company on behalf of the shareholders by whom they are elected and to whom they
are accountable. The Board has responsibility for the overall Corporate Governance of the Company including its
strategic direction, establishment of goals for its management and monitoring the achievement of those goals.
The individual Directors recognise that their primary responsibility is to the owners of the Company, its shareholders,
while simultaneously having regard for the interests of all stakeholders and the broader community.
The statement outlines the Company’s Corporate Governance Practices in place during the financial year. The
Company’s statement is made based on the ASX Corporate Governance Councils Corporate Governance Principles
and Recommendations (3rd Edition).
Although the ASX Corporate Governance Council’s Recommendations are not mandatory, under listing rule 4.10.3
companies are required to provide a statement disclosing the extent to which they have followed the recommendations
in the reporting period, identifying any principles which have not been followed with reasons for not having done so.
The Group’s corporate governance statement for the year ended 30th June 2015 is accurate and up to date as at 30th
June 2015, and was approved by the Board on 27th May 2015.
The statement of revised principles and the Company’s compliance with each principle are set out in the Company’s
website www.mtnres.com.au
DIRECTORS’ DECLARATION
The Directors of the company declare that:
1.
The financial statements and notes set out on pages 28 to 50 are in accordance with the Corporations Act 2001,
including:
(a)
(b)
complying with Accounting Standards (including the Australian Accounting Interpretations) and the
Corporations Regulations 2001;
giving a true and fair view of the financial position as at 30 June 2015 and of the performance of the
consolidated group for the year ended on that date.
The financial statements and notes set out on pages 28 to 50 comply with international financial reporting
standards as disclosed in note 1.
The Managing Director and Chief Finance Officer have each declared that:
2.
3.
(a)
(b)
the financial records of the company for the financial year have been properly maintained in accordance
with section 286 of the Corporations Act 2001;
the financial statements and notes for the financial year comply with Australian Accounting Standards;
and
(c)
the financial statements and notes for the financial year give a true and fair view.
4.
In the directors opinion there are reasonable grounds to believe that the company will be able to pay its debts as
and when they become due and payable.
This declaration is made in accordance with a resolution of the Board of Directors.
D K Shearwood - Director
D J D Peters - Director
Dated at Adelaide, South Australia this 3rd day of September 2015
LEIGH CREEK ENERGY LIMITED | ANNUAL REPORT 2015 | ACN 107 531 822
2626
Page 11
LEIGH CREEK ENERGY LIMITED | ANNUAL REPORT 2015 | ACN 107 531 822 For personal use only Level 1,
67 Greenhill Rd
Wayville SA 5034
Correspondence to:
GPO Box 1270
Adelaide SA 5001
T 61 8 8372 6666
F 61 8 8372 6677
E info.sa@au.gt.com
W www.grantthornton.com.au
AUDITOR’S INDEPENDENCE DECLARATION
TO THE DIRECTORS OF LEIGH CREEK ENERGY LIMITED
In accordance with the requirements of section 307C of the Corporations Act 2001, as lead
auditor for the audit of Leigh Creek Energy Limited for the year ended 30 June 2015, I
declare that, to the best of my knowledge and belief, there have been:
a
b
no contraventions of the auditor independence requirements of the Corporations Act
2001 in relation to the audit; and
no contraventions of any applicable code of professional conduct in relation to the
audit.
GRANT THORNTON SOUTH AUSTRALIAN PARTNERSHIP
Chartered Accountants
I S Kemp
Partner
Adelaide, 3 September 2015
Grant Thornton South Australian Partnership ABN 27 244 906 724
a subsidiary or related entity of Grant Thornton Australia Ltd ABN 41 127 556 389
‘Grant Thornton’ refers to the brand under which the Grant Thornton member firms provide assurance, tax and advisory services to their clients and/or refers to one or more member firms, as the
context requires. Grant Thornton Australia Ltd is a member firm of Grant Thornton International Ltd (GTIL). GTIL and the member firms are not a worldwide partnership. GTIL and each member firm
is a separate legal entity. Services are delivered by the member firms. GTIL does not provide services to clients. GTIL and its member firms are not agents of, and do not obligate one another and
are not liable for one another’s acts or omissions. In the Australian context only, the use of the term ‘Grant Thornton’ may refer to Grant Thornton Australia Limited ABN 41 127 556 389 and its
Australian subsidiaries and related entities. GTIL is not an Australian related entity to Grant Thornton Australia Limited.
Liability limited by a scheme approved under Professional Standards Legislation. Liability is limited in those States where a current
scheme applies.
Page 12
27
LEIGH CREEK ENERGY LIMITED | ANNUAL REPORT 2015 | ACN 107 531 822 For personal use only Statement of Profit or Loss and Other Comprehensive Income
LEIGH CREEK ENERGY LIMITED
ACN 107 531 822
for the year ended 30 June 2015
STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2015
Revenue
Gain on disposal of shares
Employee benefits expense
Occupancy expense
Consulting and legal expenses
Travel expense
Corporate administration
Interest paid
Transaction costs
Loss before income tax
Income tax benefit
Loss for the year after income tax
Total other comprehensive income
Total comprehensive (loss) for the year
Earnings per share
Basic (cents per share)
Diluted (cents per share)
Notes
2a
2b
1.2
3
21
21
The accompanying notes form part of these financial statements.
28
Consolidated
2015
$
2014
$
2,319
78,384
(480,821)
(66,394)
(160,014)
(119,223)
(120,722)
(5,632)
(16,726,044)
(17,598,147)
-
(17,598,147)
-
(17,598,147)
(0.13)
(0.13)
350
-
-
-
-
(342)
(30)
-
(22)
-
(22)
-
(22)-
N/A
N/A
Page 13
LEIGH CREEK ENERGY LIMITED | ANNUAL REPORT 2015 | ACN 107 531 822 For personal use only
LEIGH CREEK ENERGY LIMITED
ACN 107 531 822
STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2015
Statement of Financial Position
as at June 2015
CURRENT ASSETS
Cash and Cash Equivalents
Trade and Other Receivables
Other Financial Assets
Total Current Assets
NON-CURRENT ASSETS
Property, Plant and Equipment
Exploration and Evaluation Expenditure
Total Non-Current Assets
TOTAL ASSETS
CURRENT LIABILITIES
Trade and Other Payables
Short Term Loans
Employee Entitlements
Total Current Liabilities
NET ASSETS
EQUITY
Issued Capital
Retained Losses
TOTAL EQUITY
Notes
Consolidated
2015
$
2014
$
15(a)
1,484,627
4
5
6
7
8
9
10
101,618
18,680
1,604,925
78,570
710,667
789,237
2,394,162
358,270
125,438
20,803
504,511
6
-
-
6
-
-
-
6
1,720
-
-
1,720
1,889,651
(1,714)
11
19,493,353
(17,603,702)
1,889,651
3,841
(5,555)
(1,714)
The accompanying notes form part of these financial statements.
Page 14
29
LEIGH CREEK ENERGY LIMITED | ANNUAL REPORT 2015 | ACN 107 531 822 For personal use only
LEIGH CREEK ENERGY LIMITED
ACN 107 531 822
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2015
Statement of Changes in Equity
for the year ended 30 June 2014
Consolidated
BALANCE 1 July 2013
Total profit or (loss)
Other comprehensive income
Total comprehensive income
SHARE
CAPITAL
$
RETAINED
LOSSES
$
TOTAL
$
3,841
(5,533)
(1,692)
-
-
-
(22)
-
(22)
(22)
-
(22)
BALANCE AT 30 June 2014
3,841
(5,555)
(1,714)
Total profit or (loss)
Other comprehensive income
Total comprehensive income
Transactions with members in their
capacity as owners:
Subscribed equity net of capital raising
costs
Leigh Creek Energy minority
shareholders at fair value 29th June 2015
-
-
-
(17,598,147)
(17,598,147)
-
-
(17,598,147)
(17,598,147)
1,605,400
17,884,112
-
-
1,605,400
17,884,112
BALANCE AT 30 June 2015
19,493,353
(17,603,702)
1,889,651
The accompanying notes form part of these financial statements.
Page 15
30
LEIGH CREEK ENERGY LIMITED | ANNUAL REPORT 2015 | ACN 107 531 822 For personal use only
Statement of Cash Flows
for the year ended 30 June 2015
LEIGH CREEK ENERGY LIMITED
ACN 107 531 822
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2015
Consolidated
Notes
2015
$
2014
$
Cash flows from operating activities
Interest and sundry income received
2a
Payments to suppliers and employees
2,319
(907,410)
Net cash (used in) / provided by operating activities
15b
(905,091)
Cash flows from investing activities
Proceeds on disposal of shares
Purchase of shares
Capitalised exploration costs
205,940
(685,002)
(710,667)
Net cash (used in) investing activities
(1,189,729)
Cash flow from financing activities
Issue of shares
Share issue transaction costs
Advances from related parties
Advances from subsidiary prior to completion
Net cash provided by financing activities
Accounting subsidiary cash acquired upon
completion of reverse takeover
Net increase in cash held
Cash at the beginning of the year
1,777,600
(172,200)
125,438
374,045
2,104,883
1,474,558
1,484,621
6
Cash at the end of the year
15(a)
1,484,627
350
(344)
6
-
-
-
-
-
-
-
-
-
6
-
6
The accompanying notes form part of these financial statements.
Page 16
31
LEIGH CREEK ENERGY LIMITED | ANNUAL REPORT 2015 | ACN 107 531 822 For personal use only
Notes to the Financial Statements
LEIGH CREEK ENERGY LIMITED
for the year ended 30 June 2015
ACN 107 531 822
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2015
NOTE 1 – STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES
The financial report is a general purpose financial report that has been prepared in accordance with Australian Accounting
Standards, including Australian Accounting interpretations, other authoritative pronouncements of the Australian
Accounting Standards Board and the Corporations Act 2001. Leigh Creek Energy is a for profit entity for the purposes of
preparing the financial statements. The financial report has been presented in Australian dollars.
The financial report covers Leigh Creek Energy Limited and its controlled entity as a consolidated entity (“Group”). Leigh
Creek Energy Limited is a listed public company, incorporated and domiciled in Australia.
Compliance with IFRS
Compliance with Australian Accounting Standards ensures that the consolidated financial statements and notes of Leigh
Creek Energy Limited and its controlled entity comply with International Financial Reporting Standards (IFRS).
The following is a summary of the material accounting policies adopted by the consolidated group in the preparation of the
financial report. The accounting policies have been consistently applied, unless otherwise stated.
The financial report of Leigh Creek Energy Limited for the year ended 30 June 2015 was authorised for issue in
accordance with a resolution of the Directors on September 3, 2015.
Basis of Preparation
The accounting policies set out below have been consistently applied to all years presented.
Reporting Basis and Conventions
The financial report has been prepared on an accruals basis and is based on historical costs modified by the revaluation of
selected non-current assets, financial assets and financial liabilities for which the fair value basis of accounting has been
applied.
On 29th June 2015 Leigh Creek Energy completed a transaction to acquire all of the issued capital of ARP TriEnergy by
the issue of 138,311,683 Leigh Creek Energy Shares.
This resulted in the existing ARP TriEnergy shareholders holding 60% of the expanded issued share capital of Leigh Creek
Energy, after allowing for the disposal by ARP TriEnergy of its pre transaction holding in Leigh Creek Energy.
To give effect of this transaction the consolidated financial information included in these Financial Statements has been
prepared using “Reverse Acquisition Accounting Principles”. Refer Note 1.2.
Under these principles Leigh Creek Energy is the legal parent company but ARP TriEnergy is the accounting parent for
consolidated accounting purposes as follows:
Statement of Financial Position
The 30th June 2015 statement of financial position represents both Leigh Creek Energy and ARP TriEnergy. The
2014 comparative is ARP Tri Energy alone.
Statement of Profit or Loss and other comprehensive Income
The 30th June 2015 statement of profit or loss and other comprehensive income and the 2014 comparative is
ARP TriEnergy alone.
Statement of Changes in Equity
The 30th June 2015 statement of changes in equity comprises ARP TriEnergy equity balance at 1st July 2014, its
loss for the Year, and other transactions with equity holders. It also comprises Leigh Creek Energy’s transactions
with equity holders at 30th June 2015.
Other transactions with equity holders include the quarantining of the shares held by ARP TriEnergy shareholders
before the acquisition of ARP TriEnergy by Leigh Creek Energy.
These shares are reclassified as Treasury Stock and required by Sec 259D of the Corporations Act to be
disposed of within 12 months of completion. Refer Note 1.1
The 30th June 2014 statement of changes in equity is ARP TriEnergy alone.
Statement of Cash Flows
The 30th June 2015 statement of cash flows comprises the cash balance of ARP TriEnergy at 1st July 2014 and its
cash transactions for the Year plus the cash balance of Leigh Creek Energy acquired on 30th June 2015.
The 30th June 2014 statement of cash flows is ARP TriEnergy alone.
•
•
•
Page 17
•
32
LEIGH CREEK ENERGY LIMITED | ANNUAL REPORT 2015 | ACN 107 531 822 For personal use only
Notes to the Financial Statements
LEIGH CREEK ENERGY LIMITED
for the year ended 30 June 2015
ACN 107 531 822
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2015
NOTE 1 – STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
Accounting policies
a) Principles of Consolidation
The Group financial statements consolidate those of the Parent Company and all of its subsidiaries as of 30 June
2015. 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
report date of 30 June. The controlled entities are disclosed in Note 16 to the financial statements.
All inter-company balances and transactions between entities in the consolidated entity, including any unrealised
profits or losses, have been eliminated on consolidation. Accounting policies of subsidiaries are consistent with those
policies applied by the parent entity.
b)
Income Tax
Current tax
The charge for current income tax expense is based on the profit for the year adjusted for any non-assessable or
disallowed items. It is calculated using the tax rates that have been enacted or are substantially enacted by the
reporting date.
Deferred tax
Deferred tax is accounted for using the liability method in respect of temporary differences arising between the tax
bases of assets and liabilities and their carrying amounts in the financial statements. No deferred income tax will be
recognised from the initial recognition of an asset or liability, excluding a business combination, where there is no
effect on accounting or taxable profit or loss.
Deferred tax is calculated at the tax rates that are expected to apply to the period when the asset is realised or liability
is settled. Deferred tax is credited in the statement of profit or loss and other comprehensive income except where it
relates to items that may be credited directly to equity, in which case the deferred tax is adjusted directly in
comprehensive income against equity.
Deferred income tax assets are recognised to the extent that it is probable that future tax profits will be available
against which deductible temporary differences can be utilised.
The amount of benefits brought to account or which may be realised in the future is based on the assumption that no
adverse change will occur in income taxation legislation and the anticipation that the economic entity will derive
sufficient future assessable income to enable the benefit to be realised and comply with the condition of deductibility
imposed by the law.
Tax consolidation
Leigh Creek Energy Limited is part of a tax-consolidated group under Australian taxation law. Each entity in the group
recognises its own current and deferred liabilities, except for any deferred tax liabilities resulting from unused tax
losses and tax credits, which are immediately assumed by the parent entity. The current tax liability of each group
entity is then subsequently assumed by the parent entity. The tax consolidated group has entered a tax sharing
agreement whereby each company in the group contributes to the income tax payable in proportion to their
contribution to the net profit before tax of the consolidated group.
c) Property, Plant and Equipment
Each class of property, plant and equipment is carried at cost, where applicable, any accumulated depreciation and
impairment losses.
Plant and equipment
Plant and equipment are measured on the cost basis.
The carrying amount of plant and equipment is reviewed annually to ensure it is not in excess of the recoverable
amount from these assets. The recoverable amount is assessed on the basis of the expected net cash flows that will
Page 18
33
LEIGH CREEK ENERGY LIMITED | ANNUAL REPORT 2015 | ACN 107 531 822 For personal use only
Notes to the Financial Statements
LEIGH CREEK ENERGY LIMITED
for the year ended 30 June 2015
ACN 107 531 822
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2015
NOTE 1 – STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
c) Property, Plant and Equipment (continued)
be received from the asset’s employment and subsequent disposal. The expected net cash flows have been
discounted to their present values in determining recoverable amounts.
Assets acquired are recorded at the cost of acquisition being the purchase consideration determined as at the date of
acquisition plus costs incidental to the acquisition.
Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only
when it is probable that future economic benefits associated with the item will flow to the group and the cost of the
item can be measured reliably. All other repairs and maintenance are charged to the profit or loss during the financial
period in which they are incurred.
Depreciation
The depreciable amount of all fixed assets is calculated on a straight-line basis over the useful life of those assets to
the consolidated entity commencing from the time the asset is held ready for use. Leasehold improvements are
depreciated over the shorter of the lease term and the assets useful lives.
The depreciation rates used for each class of depreciable assets are:
Class of Fixed Asset
Plant and equipment
Office equipment
Motor vehicles
Leasehold improvement
Depreciation Rate
5-33%
10-20%
15%
45%
The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at each reporting date.
An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying amount is
greater than its estimated recoverable amount.
Gains and losses on disposals are determined by comparing proceeds with the carrying amount. These gains and
losses are included in the profit or loss.
d) Exploration and Evaluation Expenditure
Exploration and evaluation expenditure incurred is accumulated in respect of each identifiable area of interest. These
costs are only carried forward to the extent that right of tenure is current and those costs are expected to be
recouped through the successful development of the area (or, alternatively by its sale) or where activities in the area
have not yet reached a stage which permits reasonable assessment of the existence of economically recoverable
reserves and operations in relation to the area are continuing.
Accumulated costs, in relation to an abandoned area, are written off in full against profit in the period in which the
decision to abandon the area is made.
When production commences, the accumulated costs for the relevant area of interest are amortised over the life of
the area according to the rate of depletion of the economically recoverable reserves. A regular review is undertaken
of each area of interest to determine the appropriateness of continuing to carry forward costs in relation to that area
of interest.
Costs of site restoration are provided over the life of the facility from when exploration commences and are included
in the costs of that stage. Site restoration costs include the dismantling and removal of mining plant, equipment and
building structures, waste removal and rehabilitation of the site in accordance with clauses of the mining permits.
Such costs have been determined using estimates of future costs, current legal requirements and technology on an
undiscounted basis.
Any changes in the estimates for the costs are accounted on a prospective basis. In determining the costs of site
restoration, there is uncertainty regarding the nature and extent of the restoration due to community expectations and
future legislation. Accordingly, the costs have been determined on the basis that the restoration will be completed
within one year of abandoning the site.
34
Page 19
LEIGH CREEK ENERGY LIMITED | ANNUAL REPORT 2015 | ACN 107 531 822 For personal use only
Notes to the Financial Statements
LEIGH CREEK ENERGY LIMITED
for the year ended 30 June 2015
ACN 107 531 822
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2015
NOTE 1 – STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
e) Financial Instruments
Recognition
Financial assets and financial liabilities are recognised when the Group becomes a party to the contractual provisions
of the financial instrument, and are measured initially at fair value adjusted by transactions costs, except for those
carried at fair value through profit or loss, which are measured initially at fair value. Subsequent measurement of
financial assets and financial liabilities are described below.
Classification and subsequent measurement
Financial assets at fair value through profit and loss (FVTPL)
Financial assets at FVTPL include financial assets that are either classified as held for trading or that meet certain
conditions and are designated at FVTPL upon initial recognition. Assets in this category are measured at fair value
with gains or losses recognised in profit or loss. The fair values of financial assets in this category are determined by
reference to active market transactions or using a valuation technique where no active market exists.
Loans and receivables
Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in
an active market and are stated at amortised cost using the effective interest rate method.
Available-for-sale financial assets
Available-for-sale financial assets include any financial assets not included in the above categories. Available-for-sale
financial assets are reflected at fair value. Unrealised gains and losses arising from changes in fair value are taken
directly to equity.
Derecognition
Financial assets are derecognised where the contractual rights to receipt of cash flows expires or the asset is
transferred to another party whereby the entity no longer has any significant continuing involvement in the risks and
benefits associated with the asset. Financial liabilities are derecognised where the related obligations are either
discharged, cancelled or expire. The difference between the carrying value of the financial liability extinguished or
transferred to another party and the fair value of consideration paid, including the transfer of non-cash assets or
liabilities assumed, is recognised in the profit or loss.
Impairment
At each reporting date, the group assesses whether there is objective evidence that a financial instrument has been
impaired. In the case of available-for-sale financial instruments, a prolonged decline in the value of the instrument is
considered to determine whether impairment has arisen. Impairment losses are recognised in the profit or loss.
f)
Impairment of Assets
At each reporting date, the group reviews the carrying values of its assets to determine whether there is any indication
that those assets have been impaired. If such an indication exists, the recoverable amount of the asset, being the
higher of the asset’s fair value less costs to sell and value in use, is compared to the asset’s carrying value. Any
excess of the asset’s carrying value over its recoverable amount is expensed to the statement of profit or loss and
other comprehensive income. Where it is not possible to estimate the recoverable amount of an individual asset, the
group estimates the recoverable amount of the cash-generating unit to which the asset belongs.
g)
Interests in Joint Ventures / Joint Operations
A joint venture is an arrangement that the Group controls jointly with one or more other investors, and over which the
Group has rights to a share of the arrangement’s net assets rather than direct rights to underlying assets and
obligations for underlying liabilities. A joint arrangement in which the Group has direct rights to underlying assets and
obligations for underlying liabilities is classified as a joint operation.
Joint ventures are accounted for using the equity method. Interests in joint operations are accounted for by
recognising the Group’s assets (including its share of any assets held jointly), its liabilities (including its share of any
liabilities incurred jointly), its revenue from the sale of its share of the output arising from the joint operation, its share
of the revenue from the sale of the output by the joint operation and its expenses (including its share of any expenses
incurred jointly).
Page 20
35
LEIGH CREEK ENERGY LIMITED | ANNUAL REPORT 2015 | ACN 107 531 822 For personal use only
Notes to the Financial Statements
LEIGH CREEK ENERGY LIMITED
for the year ended 30 June 2015
ACN 107 531 822
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2015
NOTE 1 – STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
h) Employee Benefits
Provision is made for the group’s liability for employee benefits arising from services rendered by employees to
reporting date. Employee benefits that are expected to be settled within one year have been measured at the amounts
expected to be paid when the liability is settled, plus related on-costs. Employee benefits payable later than one year
have been measured at the present value of the estimated future cash outflows to be made for those benefits.
i) Provisions
Provisions are recognised when the group has a legal or constructive obligation, as a result of past events, for which it
is probable that an outflow of economic benefits will result and that outflow can be reliably measured.
j) Cash and Cash Equivalents
Cash and cash equivalents include cash on hand, deposits held at call with banks, other short-term highly liquid
investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within
short-term borrowings in current liabilities on the statement of financial position where applicable.
k) Revenue
Interest revenue is recognised on a proportional basis taking into account the interest rates applicable to the financial
assets
l) Goods and Services Tax (GST)
Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of GST incurred
is not recoverable from the Australian Tax Office. In these circumstances the GST is recognised as part of the cost of
acquisition of the asset or as part of an item of the expense. Receivables and payables in the statement of financial
position are shown inclusive of GST.
Cash flows are presented in the cash flow statement on a gross basis, except for the GST component of investing and
financial activities, which are disclosed as operating cash flows.
m) Comparative Figures
Unless otherwise required by an accounting standard comparative information is disclosed in respect of the previous
corresponding period, including for narrative and descriptive information. To the extent that items are amended or
reclassified comparative amounts are also amended or reclassified. Prior period errors are retrospectively corrected in
the next financial report following discovery.
n) Share Based Payments
The company issues shares and options from time to time for no consideration. Equity-settled share based payments
are measured at fair value at the date of grant. Fair value is determined by the use of a Black-Scholes pricing model.
The fair value is fully expensed on a straight line basis over the vesting period.
o) Leases
Lease payments for operating leases, where substantially all the risks and benefits remain with the lessor, are
charged as expenses in the periods in which they are incurred.
p) Critical Accounting Estimates and Judgments
The directors evaluate estimates and judgments incorporated into the financial report based on historical knowledge
and best available current information. Estimates assume a reasonable expectation of future events and are based on
current trends and economic data, obtained both externally and within the group.
The 2015 financial report contains no critical estimates, other than the reverse acquisition accounting described in
Note 1.2, in which on the assessment of applying the principles of AASB 3 regarding reverse acquisitions, it was
determined that Leigh Creek Energy did not meet the definition of a business.
q) New Accounting Standards and Interpretations
A number of new and revised standards are effective for annual periods beginning on or after July 1, 2014.
Information on these new standards is presented below.
The Group has adopted the following revisions and amendments to AASB’s issued by the Australian Accounting
Standards Board and IFRS issued by the International Accounting Standards Board, which are relevant to and
effective for the Group's financial statements for the annual period beginning July 1, 2014:
• AASB 2012-3: Amendments to Australian Accounting Standards – Offsetting Financial Assets and
Financial Liabilities
• AASB 2012-3: AASB 136 – Recoverable Amount Disclosures for Non-Financial Assets; and
Page 21
36
LEIGH CREEK ENERGY LIMITED | ANNUAL REPORT 2015 | ACN 107 531 822 For personal use only
Notes to the Financial Statements
LEIGH CREEK ENERGY LIMITED
for the year ended 30 June 2015
ACN 107 531 822
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2015
NOTE 1 – STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
q) New Accounting Standards and Interpretations (continued)
• AASB 2014-1: Amendments to Australian Accounting Standards (Part A: Annual Improvements 2010-2012
and 2011-2013 Cycles).
Management has reviewed the requirements of the above standards and has concluded that there was no effect on
the classification or presentation of balances.
Recently issued accounting standards to be applied in future accounting periods
The accounting standards that have not been early adopted for the year ended June 30, 2015, but will be applicable
to the Group in future reporting periods are detailed below. Apart from these standards, we have considered other
accounting standards that will be applicable in future reporting periods, however they have been considered
insignificant to the Group.
(i) AASB 9 Financial Instruments (December 2014)
AASB 9 introduces new requirements for the classification and measurement of financial assets and
liabilities. These requirements improve and simplify the approach for classification and measurement of
financial assets compared with the requirements of AASB 139. The main changes are:
a. Financial assets that are debt instruments will be classified based on: (i) the objective of the entity’s
business model for managing the financial assets; and (ii) the characteristics of the contractual cash
flows.
b. Allows an irrevocable election on initial recognition to present gains and losses on investments in equity
instruments that are not held for trading in other comprehensive income (instead of in profit or loss).
Dividends in respect of these investments that are a return on investment can be recognised in profit or
loss and there is no impairment or recycling on disposal of the instrument.
c. Introduces a ‘fair value through other comprehensive income’ measurement category for particular
simple debt instruments.
d. Financial assets can be designated and measured at fair value through profit or loss at initial recognition
if doing so eliminates or significantly reduces a measurement or recognition inconsistency that would
arise from measuring assets or liabilities, or recognising the gains and losses on them, on different
bases.
e. Where the fair value option is used for financial liabilities the change in fair value is to be accounted for
as follows:
-
-
-
-
the change attributable to changes in credit risk are presented in Other Comprehensive Income
(‘OCI’)
the remaining change is presented in profit or loss
If this approach creates or enlarges an accounting mismatch in the profit or loss, the effect of the
changes in credit risk are also presented in profit or loss.
Otherwise, the following requirements have generally been carried forward unchanged from AASB 139
into AASB 9:
classification and measurement of financial liabilities; and
derecognition requirements for financial assets and liabilities.
AASB 9 requirements regarding hedge accounting represent a substantial overhaul of hedge accounting
that enable entities to better reflect their risk management activities in the financial statements.
Furthermore, AASB 9 introduces a new impairment model based on expected credit losses. This model
makes use of more forward-looking information and applies to all financial instruments that are subject to
impairment accounting.
When this standard is first adopted for the year ending 30 June 2019, there will be no material impact on the
transactions and balances recognised in the financial statements.
(ii) AASB 2014-4 Amendments to Australian Accounting Standards – Clarification of Acceptable Methods of
Depreciation and Amortisation.
The amendments to AASB 116 prohibit the use of a revenue-based depreciation method for property, plant
and equipment. Additionally, the amendments provide guidance in the application of the diminishing
balance method for property, plant and equipment.
The amendments to AASB 138 present a rebuttable presumption that a revenue-based amortisation
method for intangible assets is inappropriate. This rebuttable presumption can be overcome (i.e., a
revenue-based amortisation method might be appropriate) only in two (2) limited circumstances:
Page 22
37
LEIGH CREEK ENERGY LIMITED | ANNUAL REPORT 2015 | ACN 107 531 822 For personal use only
Notes to the Financial Statements
LEIGH CREEK ENERGY LIMITED
for the year ended 30 June 2015
ACN 107 531 822
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2015
NOTE 1 – STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
q) New Accounting Standards and Interpretations (continued)
a. The intangible asset is expressed as a measure of revenue, for example when the predominant limiting
factor inherent in an intangible asset is the achievement of a revenue threshold (for instance, the right
to operate a toll road could be based on a fixed total amount of revenue to be generated from
cumulative tolls charged); or
b. When it can be demonstrated that revenue and the consumption of the economic benefits of the intangible
asset are highly correlated.
When these amendments are first adopted for the year ending 30 June 2017, there will be no material
impact on the transactions and balances recognised in the financial statements.
(iii) AASB 2015-2 Amendments to Australian Accounting Standards – Disclosure Initiative: Amendments to
AASB 101.
The amendments:
clarify the materiality requirements in AASB 101, including an emphasis on the potentially detrimental
effect of obscuring useful information with immaterial information
clarify that AASB 101’s specified line items in the statement(s) of profit or loss and other comprehensive
income and the statement of financial position can be disaggregated
add requirements for how an entity should present subtotals in the statement(s) of profit and loss and
other comprehensive income and the statement of financial position
-
-
-
clarify that entities have flexibility as to the order in which they present the notes, but also emphasise
that understandability and comparability should be considered by an entity when deciding that order
remove potentially unhelpful guidance in IAS 1 for identifying a significant accounting policy.
-
-
When these amendments are first adopted for the year ending 30 June 2017, there will be no material
impact on the financial statements.
(iv) AASB 2015-3 Amendments to Australian Accounting Standards arising from the Withdrawal of AASB 1031
Materiality.
The Standard completes the AASB’s project to remove Australian guidance on materiality from Australian
Accounting Standards.
When this Standard is first adopted for the year ending 30 June 2016, there will be no impact on the
financial statements.
Other standards not yet issued and not expected to impact on the Group:
-
-
AASB 2014-7 Amendments to Australian Accounting Standards arising from AASB 9 (December 2014)
AASB 2014-8 Amendments to Australian Accounting Standards arising from AASB 9 (December 2014
Application of AASB 9 (December 2009) and AASB 9 (December 2010)
There are no other standards that are not yet effective and that are expected to have a material impact on the
entity in the current or future reporting periods and on foreseeable future transactions.
The entity has not yet assessed the full impact of these amendments.
NOTE 1.1 – TREASURY STOCK
Holding of ARP TriEnergy Pty Ltd in Leigh Creek Energy Ltd prior
to the acquisition of ARP by Leigh Creek Energy
Sold prior to the acquisition
Holding after acquisition
18,432,337 Shares
3,432,337 Shares
15,000,000 Shares
38
Page 23
LEIGH CREEK ENERGY LIMITED | ANNUAL REPORT 2015 | ACN 107 531 822 For personal use only
Notes to the Financial Statements
LEIGH CREEK ENERGY LIMITED
ACN 107 531 822
for the year ended 30 June 2015
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2015
NOTE 1.2 – REVERSE ACQUISITION – ACQUISITION OF ARP TRI ENERGY PTY LTD
On June 29, 2015, the Group acquired 100% of the voting shares of ARP TriEnergy, an unlisted private company. The
shareholders of ARP TriEnergy obtained 60% voting rights in Leigh Creek Energy Limited. At the date of acquisition, Leigh
Creek Energy was a non-trading listed company. This is a reverse acquisition in which ARP TriEnergy is the accounting
acquirer and Leigh Creek Energy is the accounting acquiree.
Under the requirements in AASB 3 Business Combinations, this cannot be accounted for as a business combination
because Leigh Creek Energy was not a business. In accordance with the generally accepted guidance, this has been
accounted for using the reverse acquisition principles in AASB 3, except that no goodwill is recognised and a transaction
cost expense is recognised, which represents the cost of ARP TriEnergy acquiring Leigh Creek Energy.
Accordingly, the assets and liabilities of the legal subsidiary (the accounting acquirer) being ARP TriEnergy are measured
at their pre combination carrying amounts.
The assets and liabilities of the legal parent (accounting acquiree), being Leigh Creek Energy are measured at fair value
on the date of acquisition.
Fair value of consideration transferred
The consideration in a reverse acquisition is deemed to have been incurred by the legal subsidiary (ARP Tri Energy) in the
form of equity instruments issued to the shareholders of the legal parent entity (Leigh Creek Energy). The acquisition date
fair value of the consideration transferred has been determined by reference to the fair value of the number of shares the
legal subsidiary (ARP TriEnergy) would have issued to the legal parent entity (Leigh Creek Energy) to obtain the same
ownership interest in the combined entity.
Details of transactions are:
Fair value of consideration transferred
Fair value of assets and liabilities assumed
Transaction costs in profit or loss
$
18,441,558
(1,715,514)
16,726,044
The purchase consideration deemed to have been paid differs from the actual consideration paid due to the nature of
Reverse acquisition. The legal consideration that Leigh Creek Energy (formerly Marathon Resources) paid to acquire ARP
TriEnergy was 138,311,683 shares having a deemed value of $27.6 million.
As Leigh Creek Energy did not contain an operating business and represented merely a listed shell Company, the surplus
identified above has been treated as a transaction cost and expensed in the Company's statement of profit or loss.
In addition to these non-cash transaction costs the Parent Company (Leigh Creek Energy Limited) incurred cash
transaction costs of $ 917,521 (including a stamp duty deposit expense of $ 120,000). These costs reduced the Parent
Company net equity at completion of the takeover transaction which was eliminated on consolidation.
Page 24
39
LEIGH CREEK ENERGY LIMITED | ANNUAL REPORT 2015 | ACN 107 531 822 For personal use only
Notes to the Financial Statements
LEIGH CREEK ENERGY LIMITED
ACN 107 531 822
NOTES TO THE FINANCIAL STATEMENTS
for the year ended 30 June 2015
FOR THE YEAR ENDED 30 JUNE 2015
NOTE 2 – REVENUE AND EXPENSES FROM OPERATIONS
Consolidated
a. Revenue
Interest revenue
Sundry Fees
b. Corporate administration
Corporate administration includes:
Accounting and audit
Computer costs
Insurance
Printing & office supplies
Communications costs
Licence fees
Other expenses
2015
$
2,319
-
2,319
32,546
2,658
4,453
16,241
8,652
9,270
46,902
120,722
2014
$
-
350
350
-
-
-
-
-
-
342
342
40
Page 25
LEIGH CREEK ENERGY LIMITED | ANNUAL REPORT 2015 | ACN 107 531 822 For personal use only
Notes to the Financial Statements
LEIGH CREEK ENERGY LIMITED
for the year ended 30 June 2015
ACN 107 531 822
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2015
NOTE 3 – INCOME TAX
Consolidated
2015
$
2014
$
The components of tax expense comprise:
Loss before income tax
Deemed acquisition cost of subsidiary
(17,598,147)
16,726,044
The prima facie income tax expense before tax is reconciled
to the income tax as follows:
Loss from continuing operations
Prima facie tax (benefit) on loss before income tax at 30%
(2014: 30%)
Movement in unrecognised tax assets and liabilities
Current year tax loss not recognisable
Income tax from operations
Unrecognised deferred tax assets:
(872,103)
(261,631)
12,225
249,406
-
Deferred tax assets have not been recognised in respect of the following items:
-
-
-
-
-
-
-
Tax value of carried forward tax losses
- Capital
- Revenue
Timing differences
Revenue differences not recognised
Equity differences not recognised
Consolidated
2015
$
-
249,406
12,225
-
2014
$
-
-
-
-
The Parent Company Leigh Creek Energy Limited has accumulated tax losses pre reverse takeover of ARP
TriEnergy Pty Ltd of $38,852,831. The potential tax benefit for tax losses has not been recognised in the statement of
financial position. These tax losses can only be utilised in the future if the continuity of ownership test is passed, or
failing that, the same business test is passed, and the consolidated entity is generating sufficient taxable income.
Page 26
41
LEIGH CREEK ENERGY LIMITED | ANNUAL REPORT 2015 | ACN 107 531 822 For personal use only
LEIGH CREEK ENERGY LIMITED
Notes to the Financial Statements
ACN 107 531 822
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2015
for the year ended 30 June 2015
NOTE 4 – TRADE AND OTHER RECEIVABLES
GST recoverable
Funds on deposit
Other debtors
No trade and other receivables are outside terms at reporting date.
NOTE 5 – OTHER FINANCIAL ASSETS
Current
Financial assets at fair value through profit / loss
Notes
Total Financial Assets
Financial asset at fair value through profit/loss
- Shares in Wolf Petroleum Ltd
(formerly Strzelecki Metals Ltd
previously Primary Resources Ltd)
Consolidated
2015
$
47,618
50,000
4,000
101,618
2014
$
-
-
-
Consolidated
2015
$
18,680
18,680
3,860
2014
$
-
-
-
-
The market value of these shares at reporting date was $0.034.
- Shares in Phoenix Copper Ltd
15,000
The market value of the shares at reporting date was $ 0.016.
NOTE 6 – PROPERTY, PLANT AND EQUIPMENT
Property, plant and equipment
Less accumulated depreciation
Impairment provision
Total plant and equipment
Opening balance
Net additions of Leigh Creek Energy fixed assets on completion of
ARP TriEnergy acquisition pursuant to reverse takeover business
combination principles.
Balance at 30th June 2015
Consolidated
2015
$
541,943
(337,585)
(125,788)
78,570
-
78,570
78,570
2014
$
-
-
-
-
-
-
-
42
Page 27
LEIGH CREEK ENERGY LIMITED | ANNUAL REPORT 2015 | ACN 107 531 822 For personal use only
Notes to the Financial Statements
LEIGH CREEK ENERGY LIMITED
for the year ended 30 June 2015
ACN 107 531 822
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2015
NOTE 7 – EXPLORATION AND EVALUATION EXPENDITURE
Project development & exploration costs
The Company’s interests in tenements at the date of this report are as follows:
Tenement
PEL 650
PELA 582
PELA 643
PELA 647
PELA 644
PELA 649
EL 5596
EL 5597
Location
Interest
Leigh Creek
Finniss Springs
Callabonna
Leigh Creek
Roxby Downs
Oakdale
Leigh Creek
Leigh Creek
100%
100%
100%
100%
100%
100%
100%
100%
NOTE 8 – TRADE AND OTHER PAYABLES
Trade payables
Other payables
Accruals
NOTE 9 – SHORT TERM LOANS
Related Company balance
Shareholder Loan
Directors loan
NOTE 10 – EMPLOYEE ENTITLEMENTS
Employee entitlements
Consolidated
2015
$
710,667
710,667
2014
$
-
-
Consolidated
2015
2014
$
68,269
174,001
116,000
358,270
$
-
1,720
-
1,720
Consolidated
2015
$
16,004
102,500
6,934
125,438
2014
$
-
-
-
-
Consolidated
2015
$
20,803
20,803
2014
$
-
-
Page 28
43
LEIGH CREEK ENERGY LIMITED | ANNUAL REPORT 2015 | ACN 107 531 822 For personal use only
Notes to the Financial Statements
LEIGH CREEK ENERGY LIMITED
for the year ended 30 June 2015
ACN 107 531 822
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2015
NOTE 11 – ISSUED CAPITAL
Deemed to be outstanding at beginning of period
Deemed acquisition of ARP TriEnergy
Less cost of treasury shares
Balance outstanding at the end of the period
Number
138,331,683
92,207,789
(15,000,000)
215,539,472
$
1,609,241
18,441,557
(557,445)
19,493,353
Due to the nature of a reverse acquisition, in accordance with AASB 3 the equity structure of the legal subsidiary is restated
to reflect what (given the equity structure of legal parent upon completion) the legal parent issued in the reverse acquisition.
In addition to the non-cash transaction costs, set out in Note 1.2, the Parent Company (Leigh Creek Energy Limited)
incurred cash transaction costs of $917,521 (including a stamp duty deposit expense of $120,000). These costs reduced
the Parent Company net equity at completion of the takeover transaction which was eliminated on consolidation.
Ordinary shares participate in dividends and the proceeds on winding up of the parent entity in proportion to the number of
shares held.
At the shareholders’ meeting each ordinary share is entitled to one vote when a poll is called, otherwise each shareholder
has one vote on a show of hands.
Ordinary shares have no par value and the Company does not have a limited amount of authorised capital.
Capital Management
Management objectives when managing capital are to ensure that the group can fund the development of its operations.
The Group manages the capital structure and makes adjustments to it in light of the forecast cash requirements of the
development programme. To that end, internal capital rationing is complemented by capital raising activities as required to
ensure funding for development activities is in place.
There are no externally imposed capital requirements.
NOTE 12 – COMMITMENTS FOR EXPENDITURE AND CONTINGENT LIABILITIES
Operating lease commitment
Not longer than 1 year
Longer than 1 year and not longer than 5 years
Consolidated
2014
$
2013
$
5,000
-
-
-
ARP TriEnergy Pty Ltd entered a one year lease for office premises commencing 19th July 2014 and expiring 19th July
2015. The Company has not exercised its option to extend and is now on a monthly tenancy arrangement.
The Company has no capital commitment. Exploration commitment for year 1 of PEL 650 consists of geological and
geophysical studies and appraisal drilling.
NOTE 13 – SEGMENT INFORMATION
The Board has considered the requirements of AASB 8 Operating Segments and the internal reports that are reviewed by
the chief operating decision maker (the Board) in allocating resources and has concluded at this time that there are no
separately identifiable segments.
44
Page 29
LEIGH CREEK ENERGY LIMITED | ANNUAL REPORT 2015 | ACN 107 531 822 For personal use only
Notes to the Financial Statements
LEIGH CREEK ENERGY LIMITED
for the year ended 30 June 2015
ACN 107 531 822
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2015
NOTE 14 – FINANCIAL INSTRUMENTS
(a)
Financial Risk Management
The group’s financial instruments consist mainly of deposits with banks, short-term investments, accounts
receivables and payable which are summarised as follows:
Fixed Interest
Maturing
Non-interest
Bearing
Within 1 Year Within 1 year
2014
2015
$000
$000
2015
$000
2014
$000
> 1 year
Total
2015
$000
2014
$000
2015
$000
2014
$000
Financial Assets
Loans and receivables
- Cash and cash
equivalents
- Receivables
Available for sale
Financial assets
Financial assets at fair
value through profit & loss
Total Financial Assets
Financial Liabilities
Trade and other payables
Total Financial Liabilities
1,445
-
-
-
1,445
-
-
-
-
-
-
-
-
-
40
102
-
19
161
-
-
-
-
-
242
242
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
1,485
102
-
19
1,606
-
-
-
-
-
242
242 -
-
The group does not hold any derivative instruments.
NOTE 14 – FINANCIAL INSTRUMENTS
i. Treasury Risk Management
A finance committee consisting of senior executives of the group meet on a regular basis to evaluate
management strategies in the context of the most recent economic conditions and forecasts.
ii. Finance Risks
The Group’s financial instruments are exposed to a variety of financial risks, being Market risk (Interest rate and
Price risk), Credit risk and Liquidity risk. The group operate mainly in Australia and as such are not subject to
foreign exchange risk.
Interest rate risk
The consolidated group’s exposure to interest rate risk, which is the risk that a financial instrument’s value will
fluctuate as a result of changes in market interest rates and the effective weighted average interest rates on
classes of financial assets and liabilities summarised in the table above.
Sensitivity: At June 30, 2015, if interest rates had changed by -/+ 10 basis points from the year end rates with all
other variables held constant post tax loss and total equity would have been $ 232 more/less as a result of
lower/higher interest income from term deposits.
Price risk
Price risk relates to the risk that the fair value of a financial instrument will fluctuate because of changes in market
prices largely due to market forces. The group’s available-for-sale financial assets and fair value through profit
and loss financial assets as disclosed in Note 6 are subject to price risk. Investments within these 2 categories of
financial assets are publicly traded on the ASX.
Credit risk
Exposure to credit risk relating to financial assets arises from the potential non-performance by counterparties of
contract obligation that could lead to a financial loss to the Group.
Page 30
45
LEIGH CREEK ENERGY LIMITED | ANNUAL REPORT 2015 | ACN 107 531 822 For personal use only
Notes to the Financial Statements
LEIGH CREEK ENERGY LIMITED
for the year ended 30 June 2015
ACN 107 531 822
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2015
NOTE 14 – FINANCIAL INSTRUMENTS (continued)
The group’s maximum exposure to credit risk is its cash and cash equivalents and receivables as noted in the
table above. The group manages its credit risk by depositing with reputable licenced banks.
Liquidity risk
Liquidity risk arises from the possibility that the Group might encounter difficulty in settling its debts or otherwise
meeting its obligations related to financial liabilities. The group manages liquidity risk by monitoring forecast cash
flows and ensuring that adequate sources of funding are available.
Maturity of the group’s financial liabilities is within 1 year.
(b)
Fair value
The fair value financial assets and financial liabilities must be estimated for recognition and measurement or for
disclosure purposes.
The Group uses various methods in estimating the fair value of a financial instrument. The methods comprise:
Level 1 – the fair value is calculated using quoted prices in active markets.
Level 2 – the fair value is estimated using inputs other than the quoted prices included in Level 1 that are observable
for the asset or liability, either directly (as prices) or indirectly (derived from prices).
Level 3 – the fair value is estimated using inputs for the asset or liability that are not based on observable market data.
The fair value of the financial instruments as well as the methods used to estimate the fair value are summarised
below.
Consolidated Group
Financial Assets
Financial assets at fair value
through profit and loss
Financial Liabilities
Financial Assets
Available for sale investments
Financial assets at fair value
through profit and loss
Financial Liabilities
Quoted market
price (Level 1)
Valuation
technique –
market
observable
inputs (Level 2)
Valuation
technique – non
market
observable
inputs (Level 3)
Year Ended 30 June 2015
18,680
18,680
-
-
-
-
-
-
-
-
Year Ended 30 June 2014
-
-
-
-
-
-
-
-
-
-
-
Total
18,680
18,680
-
-
-
-
-
Page 31
46
LEIGH CREEK ENERGY LIMITED | ANNUAL REPORT 2015 | ACN 107 531 822 For personal use only
Notes to the Financial Statements
LEIGH CREEK ENERGY LIMITED
ACN 107 531 822
NOTES TO THE FINANCIAL STATEMENTS
for the year ended 30 June 2015
FOR THE YEAR ENDED 30 JUNE 2015
NOTE 15 – NOTES TO THE STATEMENT OF CASH FLOWS
(a) Reconciliation of cash
For the purposes of the statement of cash flows, cash includes cash on hand and in banks and investments in money
market instruments. Cash at the end of the financial year as shown in the statement of cash flows is reconciled to the
related items in the statement of financial position as follows:
Consolidated
2015
2014
$
$
Cash on hand
Accounting subsidiary cash acquired
upon completion under reverse takeover
principles
10,069
1,474,558
Cash and cash equivalents
1,484,627
6
-
6
The weighted average effective interest rate on short-term bank deposits is 2.55% (2014: 3.52%). All deposits are for less
than 12 months.
(b)
Reconciliation of Cash Flow from Operations with Loss after Tax
Consolidated
2015
$
(17,598,147)
2014
$
(22)
Loss after income tax
Cash flows excluded from loss attributable to operating
activities:
Non cash transaction costs for
the acquisition of subsidiary
company pursuant to reverse acquisition
16,726,044
Non-cash flows in operating loss
Gain disposal shares
Amortisation expense
Change in assets and liabilities
Increase in receivables / prepayments
Increase in payables
(78,384)
-
(68,280)
113,676
Net Cash (used in) / provided by operating activities
(905,091)
-
-
-
-
28
6
Page 32
47
LEIGH CREEK ENERGY LIMITED | ANNUAL REPORT 2015 | ACN 107 531 822 For personal use only
LEIGH CREEK ENERGY LIMITED
Notes to the Financial Statements
ACN 107 531 822
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2015
for the year ended 30 June 2015
NOTE 16 – INVESTMENT IN CONTROLLED ENTITY
Entity
Country of
incorporation
Class of
share
Interest Held
Bonanza Gold Pty Ltd
Australia
Ordinary
2015
100%
ARP TriEnergy Pty Ltd
Australia
Ordinary
100%
2014
100%
0%
NOTE 16 (a) - PARENT ENTITY INFORMATION
Parent Entity
Asset
Current assets
Non-current assets
Total assets
Liabilities
Current liabilities
Non-current liabilities
Total liabilities
Equity
Issued capital
Financial asset reserve
Share option reserve
Retained earnings
Shareholder equity
Financial performance
Profit (loss) for the year
Other comprehensive income
Total comprehensive income
2015
$
1,901,276
78,570
1,979,846
264,332
-
264,332
44,033,982
-
162,150
(42,480,618)
1,715,514
(2,000,519)
403,451
(1,597,068)
2014
$
3,616,903
144,655
3,761,558
59,399
-
59,399
44,033,982
-
551,727
(40,883,550)
3,702,159
(1,562,278)
117,000
(1,445,278)
Total annual expenditure commitments at reporting date in respect of minimum expenditure requirements not
provided for in the financial statements are approximately:
Operating lease commitment
Not longer than 1 year
Longer than 1 year and not longer than 5 years
Consolidated
2015
$
2014
$
5,000
-
-
-
The parent entity has not entered into a deed of cross guarantee nor are there any contingent liabilities at the year end.
48
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LEIGH CREEK ENERGY LIMITED | ANNUAL REPORT 2015 | ACN 107 531 822 For personal use only
Notes to the Financial Statements
LEIGH CREEK ENERGY LIMITED
for the year ended 30 June 2015
ACN 107 531 822
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2015
NOTE 17 – KEY MANAGEMENT PERSONNEL COMPENSATION
The aggregate compensation made to directors and other members of the key management personnel are set out
below:
Total short term employee benefits
Total post-employment benefits
Share based payments
Total Remuneration
Detailed disclosure is included in the remuneration report.
NOTE 18 – RELATED PARTY TRANSACTIONS
2015
$
2014
$
709,721
79,462
13,874
803,057
376,741
22,847
59,909
459,497
Transactions between related parties are on normal commercial terms and conditions no more favourable than those to
other parties, unless otherwise stated.
Mr P Williams has an interest in Cluan Capital Management Pty Ltd. The Company paid consulting fees to Cluan Capital
Management Pty Ltd during the year amounting to $66,641 (2014: $80,000).
An amount of $ 13,687 (2014 $13,656) covering the Directors fees of Mr C. Ryan was paid to Westchester Corporate
Finance a business in which Mr Ryan has an interest.
Related party transactions in relation to ARP TriEnergy are as follow:
Shareholders loan of $102,500 payable to previous Director Tony Lawry. Terms include establishment fees of $1,000 and
1% per month payable at period end. This has been fully paid in August 2015.
An amount of $3,982 payable to ARK Energy Pty Ltd in which Managing Director David Shearwood has an interest. The
amount is payable by 30 June 2016.
An amount of $23,689 payable to Walloon Energy Pty Ltd in which Managing Director David Shearwood has an interest.
The amount is payable by 30 June 2016.
An amount of $11,667 is receivable from Allied Resources Partners, in which Managing Director David Shearwood has an
interest. This is not subject to any terms, conditions or fixed payment dates.
Managing Director David Shearwood is due $ 6,934 for business expenses personally incurred. These reimbursements
are not subject to any terms, conditions or fixed payment dates.
NOTE 19 – AUDITOR’S REMUNERATION
Amounts paid or due & payable to the Auditor of the Group for:
- auditing & review services
- other services
Consolidated
2015
$
30,000
-
2014
$
29,850
-
Page 34
49
LEIGH CREEK ENERGY LIMITED | ANNUAL REPORT 2015 | ACN 107 531 822 For personal use only
Notes to the Financial Statements
LEIGH CREEK ENERGY LIMITED
ACN 107 531 822
for the year ended 30 June 2015
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2015
NOTE 20 – MATTERS SUBSEQUENT TO THE END OF THE YEAR
The Company changed its name from Marathon Resources Limited to Leigh Creek Energy Limited following approval from
shareholders at a General Meeting held on August 28, 2015. Registration of the change of name was effected by the
Australian Securities and Investments Commission (ASIC) on August 31, 2015. For purposes of the Company’s ASX
listing, the new code for Leigh Creek Energy Limited is LCK with effect from Thursday, September 3, 2015.
There are no after reporting date events of consequence.
NOTE 21 – EARNINGS PER SHARE
Basic earnings per share – cents per share
Loss used to calculate basic EPS
Weighted average number of ordinary shares outstanding
During the year used in calculating basic EPS
Consolidated
2015
$
2014
$
(0.13)
(17,598,147)
138,331,683
-
-
-
The weighted number of share options on issue during the year is not included in the calculation of diluted earnings per
share because they are anti-dilutive for both reported years. These options could potentially dilute basic earnings per
share in the future.
NOTE 22 – COMPANY DETAILS
The registered office and principal place of business is:
Leigh Creek Energy Limited
Level 11
19 Grenfell Street
Adelaide South Australia 5000
50
Page 35
LEIGH CREEK ENERGY LIMITED | ANNUAL REPORT 2015 | ACN 107 531 822 For personal use only
Level 1,
67 Greenhill Rd
Wayville SA 5034
Correspondence to:
GPO Box 1270
Adelaide SA 5001
T 61 8 8372 6666
F 61 8 8372 6677
E info.sa@au.gt.com
W www.grantthornton.com.au
INDEPENDENT AUDITOR’S REPORT
TO THE MEMBERS OF LEIGH CREEK ENERGY LIMITED
Report on the financial report
We have audited the accompanying financial report of Leigh Creek Energy Limited (the
“Company”), which comprises the consolidated statement of financial position as at 30 June
2015, the consolidated statement of profit or loss and other comprehensive income,
consolidated statement of changes in equity and consolidated statement of cash flows for
the year then ended, notes comprising a summary of significant accounting policies and
other explanatory information and the directors’ declaration of the consolidated entity
comprising the Company and the entities it controlled at the year’s end or from time to time
during the financial year.
Directors’ responsibility 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. The Directors’ responsibility also includes 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. The Directors also state, in the notes to the financial report, in accordance with
Accounting Standard AASB 101 Presentation of Financial Statements, the financial
statements comply with International Financial Reporting Standards.
Auditor’s responsibility
Our responsibility is to express an opinion on the financial report based on our audit. We
conducted our audit in accordance with Australian Auditing Standards. Those standards
require us to comply with relevant ethical requirements relating to audit engagements and
plan and perform the audit to obtain reasonable assurance whether the financial report is
free from material misstatement.
Grant Thornton South Australian Partnership ABN 27 244 906 724
a subsidiary or related entity of Grant Thornton Australia Ltd ABN 41 127 556 389
‘Grant Thornton’ refers to the brand under which the Grant Thornton member firms provide assurance, tax and advisory services to their clients and/or refers to one or more member firms, as the
context requires. Grant Thornton Australia Ltd is a member firm of Grant Thornton International Ltd (GTIL). GTIL and the member firms are not a worldwide partnership. GTIL and each member firm
is a separate legal entity. Services are delivered by the member firms. GTIL does not provide services to clients. GTIL and its member firms are not agents of, and do not obligate one another and
are not liable for one another’s acts or omissions. In the Australian context only, the use of the term ‘Grant Thornton’ may refer to Grant Thornton Australia Limited ABN 41 127 556 389 and its
Australian subsidiaries and related entities. GTIL is not an Australian related entity to Grant Thornton Australia Limited.
Liability limited by a scheme approved under Professional Standards Legislation. Liability is limited in those States where a current
scheme applies.
Page 36
51
LEIGH CREEK ENERGY LIMITED | ANNUAL REPORT 2015 | ACN 107 531 822 For personal use only An audit involves performing procedures to obtain audit evidence about the amounts and
disclosures in the financial report. The procedures selected depend on the auditor’s
judgement, including the assessment of the risks of material misstatement of the financial
report, whether due to fraud or error.
In making those risk assessments, the auditor considers internal control relevant to the
Company’s preparation of the financial report that gives a true and fair view in order to
design audit procedures that are appropriate in the circumstances, but not for the purpose
of expressing an opinion on the effectiveness of the Company’s internal control. An audit
also includes evaluating the appropriateness of accounting policies used and the
reasonableness of accounting estimates made by the Directors, as well as evaluating the
overall presentation of the financial report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide
a basis for our audit opinion.
Independence
In conducting our audit, we have complied with the independence requirements of the
Corporations Act 2001.
Auditor’s opinion
In our opinion:
a
b
the financial report of Leigh Creek Energy Limited is in accordance with the
Corporations Act 2001, including:
i
ii
giving a true and fair view of the consolidated entity’s financial position as at 30
June 2015 and of its performance for the year ended on that date; and
complying with Australian Accounting Standards and the Corporations
Regulations 2001; and
the financial report also complies with International Financial Reporting Standards as
disclosed in the notes to the financial statements.
Report on the remuneration report
We have audited the remuneration report included in pages 21 to 24 of the directors’ report
for the year ended 30 June 2015. 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.
5252
LEIGH CREEK ENERGY LIMITED | ANNUAL REPORT 2015 | ACN 107 531 822
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LEIGH CREEK ENERGY LIMITED | ANNUAL REPORT 2015 | ACN 107 531 822 For personal use only Auditor’s opinion on the remuneration report
In our opinion, the remuneration report of Leigh Creek Energy Limited for the year ended
30 June 2015, complies with section 300A of the Corporations Act 2001.
GRANT THORNTON SOUTH AUSTRALIAN PARTNERSHIP
Chartered Accountants
I S Kemp
Partner
Adelaide, 3 September 2015
53
Page 38
LEIGH CREEK ENERGY LIMITED | ANNUAL REPORT 2015 | ACN 107 531 822 For personal use only Shareholder Information
LEIGH CREEK ENERGY LIMITED
ACN 107 531 822
SHAREHOLDER INFORMATION
At the date of this report all the issued securities of the Company comprised ordinary shares, 104,767,190 of which are escrowed for 2 years from
July 3, 2015, 35,544.493 of which are escrowed for 1 year from June 29, 2015, otherwise not subject to any restrictions.
SUBSTANTIAL SHAREHOLDERS AT 21 September 2015
NAME
FULLY PAID SHARES
ORDINARY SHARES %
Allied Resource Partners Pty Ltd
CITIC Australia Pty Ltd
Holdex Nominees Pty Ltd (No 433 A/C)
Mr Richard McGrath
104,767,190
17,242,855
15,000,000
13,965,235
45.45
7.48
6.51
6.06
DISTRIBUTION OF SHAREHOLDINGS AT 21 September 2015
All securities issued by the Company are fully paid ordinary shares entitling the holders to participate in dividends and proceeds on winding up of
the Company in proportion to the number of shares held. On a show of hands every holder of the shares present at a meeting in person or by proxy
is entitled to one vote and upon a poll each share counts as one vote.
RANGE
1 – 1,000
1,001 – 5,000
5,001 – 10,000
10,001 – 100,000
100,001 – 999,999,999
1,000,000,000 – 9,999,999,999
TOTAL HOLDERS
NUMBER OF SHARES
482
652
305
485
147
0
2,071
258,567
1,686,712
2,438,455
16,543,230
209,592,508
0
230,519,472
At 21 September 2015 a marketable parcel constituted 2,500 shares.
The number of shareholders holding less than a marketable parcel was
846
880,655
TWENTY LARGEST SHAREHOLDERS AT 21 September 2015
NAME
Allied Resource Partners Pty Ltd
CITIC Australia Pty Ltd
Holdex Nominees Pty Ltd (No 433 A/C)
Mr Richard McGrath
One Design & Skiff Sails Pty Ltd (IW Brown S/F)
Jetan Pty Ltd
Mr Nicholas James Redpath
FMS Pty Ltd (SM Appleyard S/F)
James St Equities Pty Ltd
Telemark International Pty Ltd
HSBC Custody Nominees (Australia) Limited
LP Rayner Nominees Pty Ltd
Lawry Super Nominees Pty Ltd (Lawry Family S/F)
Mr John Brown & Ms Elisabeth Frederico (Joli S/F)
Collin Francis McGregor Post
Mr Ben William Jarvis
Citicorp Nominees Pty Ltd
Mr Hamish John Wyllie
Mr George Kwitko
Mr Murray Kenneth Chatfield
Totals Top 20
Total Remaining Holders Balance
FULLY PAID
ORDINARY SHARES
% OF ISSUED
CAPITAL
104,767,190
17,242,855
15,000,000
13,965,235
5,167,137
3,491,309
1,815,480
1,611,379
1,577,458
1,424,454
1,342,031
1,197,242
1,137,727
1,030,000
1,000,000
977,566
975,450
914,563
900,000
837,914
176,374,990
54,144,482
45.45
7.48
6.51
6.06
2.24
1.51
0.79
0.70
0.68
0.62
0.58
0.52
0.49
0.45
0.43
0.42
0.42
0.40
0.39
0.36
76.51
23.49
54
LEIGH CREEK ENERGY LIMITED | ANNUAL REPORT 2015 | ACN 107 531 822 For personal use only
For personal use only 2015
For personal use only