L E I G H C R E E K E N E R GY L I M I T E D A N N U A L R E P O R T 2 0 1 8
LEIGH CREEK ENERGYLimited
For personal use only 2
Reliable energy for South AustraliaLeigh Creek Energy would like to acknowledge the Adnyamathanha people, the traditional owners of the land on which we operate and pay our respects to their Elders past and present.For personal use only Reliable energy for South Australia
Approved
Statement of Environmental
Objectives (SEO)
Activity Notifications (AN)
- Facility construction
- Drilling of UCG process and
monitoring wells
- Facility testing
Approval Pending
Activity Notifications (AN)
- Gasifier commissioning
and operation
Community Benefit
PCD Plant
Room nights
Copley + Leigh Creek:
548
Economic benefit
to local community:
$220,000
Economic benefit to SA
$5.43million
Increase in staff employed
Total workshop
hours worked: 9,159
Safety
Lost time
incidents/injuries: 0
Plant testing failures: 0
Drilling
PCD Area
Area of PCD:
34,000 m2
Area of PEL 650:
93,400,000 m2
Groundwater
monitoring
& geological baseline
investigation wells
drilled:
40
ISG process wells
drilled:
3
Company Overview
Listed on the Australian Stock Exchange - ASX code: LCK
Licence: Petroleum Exploration Licence 650 (PEL 650)
Head Office: Adelaide, South Australia
Project Location: Telford Basin, Leigh Creek Coalfield - Leigh Creek, South Australia
Operation: Leigh Creek Energy Project
Project Stage: Pre-Commercial Demonstration Plant (PCD)
Employees and contractors: 80+
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Reliable energy for South AustraliaLEIGH CREEK ENERGY LIMITED ANNUAL REPORT 2018Snapshot++++++For personal use only
Leigh Creek Energy (LCK) is the owner and proposed
operator of the Leigh Creek Energy Project (LCEP),
located at Leigh Creek in South Australia, 550 km north
of Adelaide. The project is located on Petroleum
Exploration Licence 650 (PEL 650), which contains the
Leigh Creek Coalfield, and will develop the deep coal
resources that are unable to be accessed by open-cut
mining through in situ gasification (ISG).
The ISG process converts coal from its solid state into
a gaseous form, resulting in the production of synthesis
gas (syngas) containing methane, hydrogen and
carbon monoxide. The syngas can either be used to
produce electricity directly or further refined into
a variety of products including natural gas, ammonia,
urea, or methanol.
LCK’s pathway to development of the LCEP comprises
the following stages, with each stage requiring careful
planning and engineering, in addition to the necessary
regulatory assessments and approvals:
• Characterisation Phase – This will determine the
environmental, geological, geotechnical and
hydrogeological perspectives of the site for a low
risk ISG project.
• Demonstration Phase – Through a Pre-Commercial
Demonstration Facility (PCD) we will demonstrate ISG at
the LCEP using a low cost rapid deployment technique.
This will provide environmental and gas quality data to
inform regulators and determine commercial project
design and feasibility study direction.
• Commercial Phase - Conduct engineering design and
feasibility studies to support the selected commercial
deployment of ISG at the LCEP. LCK intends to use
existing technologies and develop enhanced techniques
for our specific location and geology.
The PCD is planned to be operational for approximately
2-3 months, during which time it will obtain process and
environmental data of importance for the commercial phase
of the project. The demonstration phase involves
establishment of an underground single-cavity gasifier and
aboveground infrastructure on a small footprint to produce
syngas. This will allow us to confirm the composition and
performance of the process while gathering environmental
data to support the commercial plant approvals process.
LCK is committed to developing the LCEP using a best
practice approach to mitigate the technical, environmental,
and financial project risks.
Leigh Creek Coalfield — ideal for ISG
Aboveground
demonstration plant at
Leigh Creek.
4
Reliable energy for South AustraliaLeigh Creek Energy ProjectFor personal use only Adnyamathanha Acknowledgment
inside front cover
Snapshot / Company Overview
Leigh Ceek Energy Project
Chairman’s Letter
Managing Director’s Report
2017/18 Achievement’s
The ISG Process
Tenement Schedule
Directors’ Report
Auditor’s Independence
Corporate Governance Statement
Directors’ Declarartion
Auditor’s Independence Declaration
Financial Information
Consolidated Statement Of Profit Or Loss And Other
Comprehensive Income
Consolidated Statement Of Financial Position
Consolidated Statement Of Changes In Equity
Consolidated Statement Of Cash Flows
Notes To The Financial Statements
Independent Auditor’s Report
Shareholder Information
Corporate Directory
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63
inside back cover
5
Reliable energy for South AustraliaLEIGH CREEK ENERGY LIMITED ANNUAL REPORT 2018ContentsFor personal use only
It is with great pleasure that I have the opportunity to
provide our shareholders with a summary of the last
year’s progress at Leigh Creek Energy.
This year has been a challenging, rewarding and
ultimately a defining year for LCK. We started the
2017/2018 financial year having completed our
environmental baseline drilling program ready to lodge
our environmental documents for assessment. At that
time, our steadfast focus was on operation of the
demonstration plant before the end of 2017. We believed
that the quality of data we provided to the regulator
and the baseline studies were sufficient to gain the
requisite approvals.
that the environmental approvals we sought were given.
Our EIR and our SEO were approved by the Regulator,
and the SEO was gazetted on 19 April 2018. Following
receipt of the environmental approval, the Company was
required to submit a number of operational approval
documents, referred to as Activity Notifications. Within
three months of the operational approvals for
construction and drilling we were able to complete
construction of the demonstration plant and the drilling of
the inlet and outlet wells at the site. In addition to these
process wells, a large network of environmental
monitoring wells were installed on site to help our team
monitor the underground environment during operations.
The achievement of the
approvals, construction and
drilling was a team effort
by all Leigh Creek Energy
employees.
Due to the regulators requirement
for more information this required
us to undertake additional
drilling, delaying the approvals
process. During the approvals
process, LCK required a period of
public consultation for our
Environmental Impact Report
(EIR) and accompanying
Statement of Environment Objectives (SEO). The public
consultation ran for 30 business days and by the time
public consultation had finished we found ourselves in a
unique position of the Government being in caretaker
mode for the 17 March 2018 election.
The achievement of the
approvals, construction and
drilling was a team effort by all
Leigh Creek Energy employees.
Their work has been of the
highest quality. Our team
working with the regulators have
delivered on every work
requirement. The operations
team which consists of engineering, geology,
environment, stakeholder relations, procurement and
commercial studies team have all helped deliver on the
construction of the Demonstration Facility. Our finance
team, human resources, legal, company secretary and
business development have also been crucial and great
supports to the corporate side of the business.
Construction site for the
demonstration plant at
Leigh Creek.
The then sitting Government was replaced with a new
Liberal Government. This change of Government
required the new government and their ministers to
become familiar with their new portfolios. Unfortunately,
all this meant that the approvals we had hoped for by the
end of 2017 were delayed until April 2018.
The great news for our Company and shareholders is
6
Reliable energy for South AustraliaChairman’s LetterReliable energy for South AustraliaFor personal use only It is also the time to thank our shareholders who have
been extremely supportive of the Company, frustrated by
the delays, but ultimately understanding of the need to
comply with all regulatory requirements. We have a
diverse range of shareholders, with many being long
term shareholders and some have become shareholders
in the recent capital raise. It was reassuring that the
capital raise was oversubscribed, the Share Purchase
Plan was successful and the placement of the shortfall
was also successful. It was a great show of support by
our shareholders.
Finally, I am looking forward to being able to update the
market on the progress of our demonstration facility, the
production of gas and us having a 2P gas resource. This
is what we have been working towards for several years,
and it will be a great day when I can report to the market
the successful completion of this phase of the
Company’s progress. As a Company we then move into
the next phase, where we have to secure commercial
approvals, funding for a commercial project and working
with our strategic partners to achieve commercial
success and deliver on revenue.
Mr Justyn Peters
Executive Chairman
On site at Leigh Creek,
Justyn Peters overlooking
the construction of the
demonstration plant.
The great news for our Company
and shareholders is that the
environmental approvals we
sought were given.
7
Reliable energy for South AustraliaLEIGH CREEK ENERGY LIMITED ANNUAL REPORT 2018Reliable energy for South AustraliaFor personal use only
A changing landscape
As this report is prepared, LCK is experiencing an
immediate and rapid change as we move closer to
initiation and first gas flow at the Leigh Creek Energy
Project. This will be, for many reasons, a momentous
occasion in the short history of LCK. The outside view of
LCK is that of a company hopeful of turning a potentially
large resource into an economic project with much doubt
placed on our success. The imminent production of first
gas is expected to change this perception dramatically,
with many seeing gas production as the final hurdle in
... we are an unusual project in the
resources and energy sphere in that
the product from our ISG process
- syngas - has multiple potential
commercial development pathways.
proving that LCK is a real
company with a game
changing project. This will
be further solidified with
the expected and
subsequent conversion of
a large portion of our 2C
resource to a 2P reserve.
Internally this is reflected
by a change in emphasis
as we lift our heads from
Commercial focus
In a time of rapid change for LCK, the focus remains on
producing first gas at the PCD. This milestone has been
front and centre to LCK for some time now. As we
achieve this milestone we are moving away from a
demonstration focus to a project development and
commercial focus. Before we delve too deeply into our
commercial ambitions, let’s reflect on the past years
challenges, and of course, achievements.
Year in review - the challenge, and opportunity, remains
The past year for LCK was filled with ups and downs,
twists and turns, and of
course a lot of success as
we moved forward with
the PCD. One year ago,
we began the year
determined to gain our
environmental approvals
and commission the PCD.
Although we didn’t
achieve our goal of
operation by December
2017, we successfully had our Statement of
Environmental Objectives approved and gazetted by the
State Government – a fantastic result which many
thought would be beyond us. We are now focussed on
operation and with our funding in place, paired with the
right people and culture, the operation of the PCD is
imminent in Q3 2018, subject to final approvals.
the immediate view of gas production to the future
horizons – we now focus on the commercial outcomes
for the project.
Congratulations, to our
team on the achievements
to date and we look forward
to the opportunities that our
future success will bring.
8
Reliable energy for South AustraliaManaging Director’s ReportReliable energy for South AustraliaFor personal use only Forward looking
The forward steps for LCK are to move from pre-
commercial demonstration plant to small-scale
commercial and ultimately to full-scale commercial.
The market fundamentals that will
underpin our long-term success
are outstanding.
S m a l l - s c a l e
p r o d u c t i o n
P C D
L a r g e - s c a l e
p r o d u c t i o n
The small-scale commercial stage will be of limited
capital expenditure. It will further demonstrate the
commercial application of the technology proven by the
PCD. It is intended that this small-scale commercial
project will be of a scale that is able to be funded by LCK
itself. This project will play a large part in de-risking the
development of the large-scale commercial development.
In considering the future full-scale commercial pathway
we are an unusual project in the resources and energy
sphere in that the product from our ISG process - syngas
- has multiple potential commercial development
pathways. The selection of the preferred commercial
pathway depends on many factors which ultimately all
distil down to risk and return. This selection process has
been ongoing for some time with a concerted effort being
made by our small studies team. The outcomes will be
known in the very near future and, thanks to the
work already done, the decision will be based on sound
market research and professional foresight.
It is worth noting that, whatever commercial pathway is
settled on, each potential market is in desperate need of
our products. The market fundamentals that will underpin
our long-term success are outstanding.
Building success through people and culture
It is customary in a report such as this to thank the
employees, contractors and consultants that have
worked hard to get us to this stage. Ultimately those
messages often sound, to me at least, superficial and
formula driven. In our case it has to be recognised that
our people have been through a tough year. The highs
and lows of the year have made it challenging for the
team to retain its focus at times, but they have done so
with integrity and professionalism. It is a credit to the
whole team that, in the face of the recent challenges, we
have consistently displayed these values. We would not
be here without that focus and effort.
So not thanks, but congratulations, to our team on the
achievements to date and we look forward to the
opportunities that our future success will bring.
There is a long road ahead before we can rightfully claim
to be successful – by this I mean commercial success
which drives returns to our employees, community and
investors. All our stakeholders can rest assured that this
team will continue to be focussed on bringing that
commercial success to LCK.
Phil Staveley
Managing Director
The Leigh Creek Energy
construction team.
9
Reliable energy for South AustraliaLEIGH CREEK ENERGY LIMITED ANNUAL REPORT 2018Reliable energy for South AustraliaFor personal use only
Regulatory Approvals
• Statement of Environmental Objectives approved and
gazetted – April 2018
• Activity Notification (Facility Construction) approved
– May 2018
Engineering
• Completed the detailed design of the PCD above
ground plant, including modular plant, vessels,
piping, thermal oxidiser, cold vent and gas analysis
package
• Package equipment and modular plant fully
completed and tested offsite
• All equipment & plant delivered and installed on site
• Site acceptance testing completed
Operations
• Standard Operating Procedures implemented for
plant operations
• Operations personnel mobilised to site for testing
and commissioning of the plant
Stakeholder Relations
• Community engagement ongoing for life of project
• Employment of local people (both indigenous and
non-indigenous) and ongoing commitment to use
local contractors and people where possible
• Workshops, Open Days and one on one meetings
educating community members and government in
the Leigh Creek area and Port Augusta
Procurement
• Over 30 local, interstate and international specialist
contractors engaged
• Focus on local and Upper Spencer Gulf expertise
where possible
• Activity Notification (Drilling of ISG Process and
Monitoring Wells) approved – May 2018
• Activity Notification (Facility Testing) approved –
June 2018
Cultural Heritage
• Regular Board meeting updates with the
Adnyamathanha Traditional Lands Association
(ATLA)
• Workshop with ATLA – August 2017
• Work Area Clearance (with 8 Adnyamathanha cultural
advisors) cleared PCD area on grounds of Cultural
Heritage – August 2017
• Flora and Fauna survey completed with
Adnyamathanha cultural advisor
• Cultural Heritage Risk Management Plan
implemented across the operation
• Heritage Discovery Procedure implemented across
the operation
Environment
• Monthly sampling of groundwater, enabling a solid
understanding of baseline conditions at the
operational site
• Groundwater and Soil Vapour Monitoring Plan
completed
• Air Quality Monitoring Plan completed
• Rehabilitation Management Plan completed
Drilling
• 3 ISG demonstration wells (inlet, outlet and
observation well)
• 3 geological investigation wells
• 5 piezometer monitoring wells
• 10 groundwater monitoring wells
• 11 shallow groundwater monitoring wells
• 11 shallow soil vapour investigation wells
10
Reliable energy for South Australia2017/18 AchievementsFor personal use only Financing
• Capital raising event – June 2018
• Cornerstone investor, China New Energy committed
to project
• Further extension and increase in the facility limit with
the CBA, extended until December 2019 and
increased to $10.5m
Commercial Studies
• Three Scoping Studies completed on urea fertiliser
and methanol to align to prior studies on pipeline
methane and power production
• Pre-Feasibility Study on small scale power plant up
to 30MW (net) in advanced stage
• Studies addressed a broad range of disciplines
including; engineering, water supply, waste
management, regulatory approvals and commercial
agreements
• Selection of preferred products nearing completion
and will reflect the lowest risk and best return for
shareholders, in addition to providing employment
opportunities for South Australians and low-cost
products for South Australian industries
The Leigh Creek Energy
Project - demonstration
plant at Leigh Creek.
11
Reliable energy for South AustraliaLEIGH CREEK ENERGY LIMITED ANNUAL REPORT 2018Reliable energy for South AustraliaReliable energy for South AustraliaFor personal use only WEST
MAIN
SERIES PIT
8km
The Telford Basin
MAIN
SERIES PIT
EAST
LOWER
SERIES PIT
MAIN SERIES
OVERBURDEN
ADELAIDEAN
BASEMENT
M A I N S E R I E S C O A L
L O W E R S E R I E S C O A L
325m
2
5
7
1
5
How does the ISG (in situ gasification)
process work?
The ISG process converts coal, through
a chemical reaction, from its solid state
into a gaseous form, resulting in the
generation of syngas.
Syngas comprises methane, hydrogen
and carbon monoxide energy gases
with variable amounts of inert gases,
carbon dioxide and nitrogen.
1. Outlet well is drilled to intersect
coal seam.
2. Inlet well is drilled and steered to
link up with Outlet well.
3. Initiation tool is placed down the
inlet well to heat the coal and starts
the gasification process.
4. Addition of air and water creates a
series of chemical conversions
transforming coal to syngas.
5. Process is controlled by using inlet
and outlet wells to manage the flow
of air and water.
6. Syngas will flow up through the
outlet well and is analysed on the
surface.
7. Process is stopped by turning off air
and water supply from the inlet well.
Why ISG?
The remaining resource in the Telford Basin
at Leigh Creek is deep and no longer
economic to mine using open cut mining
15 GJ
methods.
Syngas
ISG technology is able to access the deep
coal via a system of drilled linked wells.
Syngas can be used to make other products
such as; electricity, synthetic natural gas,
ammonia and derivatives (fertilisers or
explosives), methanol and diesel.
OR
OR
4
500m
OVERBURDEN
(SEAL)
6
12m12m
MAIN SERIES
COAL SEAM
GASIFIER
CHAMBER
3
2
Diagram not to scale
30m
ISG process showing the below ground single ISG gasifier chamber.
Equivalant amount of syngas when converted from electricity
ISG of
1t LC coal
ISG of
1t LC coal
OR
Why ISG?
The remaining resource in the
Telford Basin at Leigh Creek is deep
OR
and no longer economic to mine
using open cut mining methods.
OR
OR
30
9kg LPG
gas bottles
OR
200
days of natural
gas to fuel a hot
water service for
30 mins/day
20
wheelbarrows
of fertiliser
4
1000
days of
km of fuel for
ISG technology is able to access the deep
electricity to
an average car
run an average
coal via a system of drilled linked wells.
household
Syngas can be used to make
other products such as; electricity,
synthetic natural gas, ammonia
and derivatives (fertilisers or
explosives), methanol and diesel.
other products such as; electricity,
synthetic natural gas, ammonia
and derivatives (fertilisers or
explosives), methanol and diesel.
200days of natural
200days of natural
20wheelbarrows
20wheelbarrows
gas to fuel a hot
water service
gas to fuel a hot
water service
of fertilser
of fertilser
1000
1000
km of fuel for
km of fuel for
an average car
an average car
4days of
4days of
electricity to
run an average
electricity to
run an average
for 30mins/day
for 30mins/day
household
household
ISG of
1t LC coal
OR
309kg LPG
309kg LPG
12
gas bottles
gas bottles
The ISG ProcessFor personal use only
Reliable energy for South Australia
Petroleum and Mineral Tenement Schedule
Tenement
Percentage Interest
Grant Date
Location
Petroleum Exploration Licence 650
Petroleum Exploration Licence Application 582
Petroleum Exploration Licence Application 643
Petroleum Exploration Licence Application 644
Petroleum Exploration Licence Application 647
Petroleum Exploration Licence Application 649
Gas Storage Exploration Licence 662
100%
100%
100%
100%
100%
100%
100%
PEL 650 Coal Resource Analysis
18 November 2014
Leigh Creek
Application Approved
Finniss Springs
Application Approved
Callabonna
Application Approved
Roxby Downs
Application Approved
Leigh Creek
Application Approved
Oakdale
5 February 2016
Leigh Creek
Tenement Working
section
block
Thickness
(m)
Depth
(m)
Inherent
moisture
(ad%)
Ash
(ad%)
Volatiles
(ad%)
Fixed
carbon
(ad%)
Density
(RD)
Area Volume
(ha)
(m)
Tonnage
(Mt)
PEL650 –
ISG WS-G
Block 1
PEL650 –
ISG WS-G
Block 2
PEL650 –
ISG WS-L1
Block 1
PEL650 –
ISG WS-K2
Block 1
PEL650 –
ISG WS-Q
Block 1
PEL650 –
ISG WS-V
Block 1
F G1-G2-H1
2.0-16.0
Av.7.1
200-366
Av. 276
15.2-17.1
Av. 15.8
6.2-20.6
Av. 10.8
23.9-29.5
Av. 27.7
33.6-47.5
Av. 42.9
1.4
159
11,300,000
15.8
F G1-G2-H1
2.0-7.1
Av. 3.68
200-301
Av. 245
17.1-17.8
Av. 17.7
11.6-12.8
Av. 12.6
27.8-27.9
Av. 27.9
41.4-42.2
Av. 41.6
1.4
24
900,000
1.3
L1
K2
2.0-6.3
Av. 3.68
200-392
Av. 245
2.0-6.7
Av. 3.3
200-413
Av. 307
-
-
-
-
-
-
-
-
1.4
204
6,140,000
8.5
1.4
301
9,970,000
13.9
Q1-Q2-Q3
2.0-29.9
Av. 15.97
200-831
Av. 477
20.9-23.0
Av. 22.5
11.0-11.2
Av. 11.1
24.9-25.1
Av. 24.9
40.9-42.3
Av. 41.2
1.4
1069
170,800,000
239
V1-V2-V3-V4
2.0-13.7
Av. 5.4
201-866
Av. 517
18.4-18.8
Av. 18.4
15.9-17.4
Av. 16.0
25.2-25.4
Av25.3
37.0-37.8
Av 37.7
1.4
990
52,800,000
74
W1
PEL650 –
ISG WS-W1
Block 1
ISG-Project Total
2.0-5.3
Av. 3.4
292-870
Av. 527
-
-
-
-
1.4
503
17,200,000
24.1
376.6
13
LEIGH CREEK ENERGY LIMITED ANNUAL REPORT 2018Tenement ScheduleFor personal use only
Coal and Gas Resources
The Company’s Inferred Coal Resource and equivalent Syngas Resource as at 30 June 2018, reported in accordance with
2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC
Code) guidelines in the 2007 Society of Petroleum Engineers (SPE) Petroleum Resources Management System (PRMS)
guidelines (respectively), are:
Tenement
Location
Coal Resource
Coal Resources
Coal Resources Syngas Resource
Syngas Energy
Syngas Energy
Category 2018
(Mt) 2018
(Mt) 2017
Classification 2018
(Pj) 2018
(Pj) 2017
Leigh Creek
Inferred
376.6
376.6
Petroleum
Exploration
Licence 650
1C
2C
3C
2,747.7
2,963.9
3,303.1
2,747.7
2,963.9
3,303.1
Notes of Gas Resources: For the purposes of ASX Listing
Rule 5.43, Leigh Creek Energy confirms that it is not
aware of any new information or data that materially
affects the information included in the 8 January 2016
Resources Statement and that all material assumptions
and technical parameters underpinning the estimates in
the Resources Statement continue to apply and have not
materially changed.
The Gas Resource estimates stated herein are based on,
and fairly represent, information and supporting
documentation prepared by Timothy Hower of MHA
Petroleum Consultants LLC, Denver USA. Mr Hower is a
member of the Society of Petroleum Engineers and has
consented to the use of the Resource estimates and
supporting information contained herein in the form and
context in which it appears. All estimates are based on
the deterministic method for estimation of petroleum
resources.
Mineral Resource and Syngas Resource Governance and
Disclosures
Mineral Resources estimated in accordance with the
requirements of the JORC Code, by qualified competent
persons who are consultants to Leigh Creek Energy.
Syngas Resources are estimated in accordance with the
requirements of the Petroleum Resources Management
System (PRMS) approved by the Society of Petroleum
Engineers, by qualified petroleum reserves and resources
evaluators who are consultants to Leigh Creek Energy.
The Minerals Resource and Syngas Resource Statements
in the 2018 Annual Report are reviewed by qualified
consultants described below. For Mineral Resources, this
is the qualified competent person, and for the Syngas
Resources, the qualified petroleum reserves and
resource evaluator.
Notes on Coal Resources: For the purposes of ASX Listing
Rule 5.23, Leigh Creek Energy confirms that it is not
aware of any new information or data that materially
affects the information included in the 8 December 2015
Resources Statement and that all material assumptions
and technical parameters underpinning the estimates in
the Resources Statement continue to apply and have not
materially changed. A review of coal quality data and
resource modelling is currently in progress and is
expected to be completed in the next quarter.
The coal resources reported herein, insofar as they relate
to mineralisation, are based on information compiled by
Mr Warwick Smyth of GeoConsult Pty Ltd. Mr Smyth is a
Member of the Australasian Institute of Mining and
Metallurgy and the Australian Institute of Geoscientists,
who has more than 25 years’ experience in the field of
activity being reported. Mr Smyth has sufficient
experience which is relevant to the style of mineralisation
and type of deposit under consideration and to the
activity he is undertaking to qualify as a Competent
Person as defined in the 2012 Edition of the “Australasian
Code for Reporting Exploration Results, Mineral
Resources and Ore Reserves”. Mr Smyth consents to the
inclusion in the report of coal resources estimates
based on his information in the form and context in which
it appears.
14
Reliable energy for South AustraliaTenement ScheduleFor personal use only
D I R E C T O R S ’ R E P O R T
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15
Reliable energy for South AustraliaDirectors’ ReportFor personal use only
Leigh Creek Energy Limited is a public company
incorporated and domiciled in Australia and listed on the
Australian Securities Exchange.
The directors present their report together with the
financial statements of the consolidated entity, being
Leigh Creek Energy Limited (“the Company” or “Leigh
Creek Energy”) and its controlled entities (“the Group”)
for the year ended 30 June 2018.
Directors
The names of the directors in office at any time during or
since the end of the year are:
Daniel Justyn Peters
(appointed 28.11.2014)
Phillip Staveley
(appointed 5.12.2017)
Gregory English
(appointed 22.9.2015)
Murray Chatfield
(appointed 30.6.2016)
Zhe Wang
(appointed 1.7.2017)
Zheng Xiaojiang
(appointed 5.12.2017)
Information on Continuing Directors
Daniel Justyn Peters LLB, BA (Politics/Jurisprudence) GDLP
Executive Chairman
Audit and Risk Committee Member
Director since 2014
Experience & expertise
Mr Peters joined Linc Energy soon after its listing on the ASX
when Linc Energy was considered a world leader in underground
coal gasification. In his six years at Linc Energy Mr Peters held
the positions of General Manager Environment and Government
Relations, General Manager Business Development, Executive
General Manager North 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
Environmental Protection Authority (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 the Queensland Mining Industry into
the EPA.
Directors have been in office since the start of the
financial year to the date of this report unless otherwise
stated.
Other current listed directorships
Emperor Energy Limited
Previous listed directorships (last three years)
None
Phillip Staveley CPA, BA (Acc) (Hons), Dipl Btr
Managing Director
Director appointed effective from 5.12.2017
Experience & expertise
Mr Staveley is a qualified Accountant who has 30 years’
experience working in the resources sector.
He started his career in the oil and gas sector working for
Schlumberger in London, followed by a number of years with
SAGASCO and SAOG (South Australian Oil and Gas Company).
He spent almost ten years with Normandy Mining Ltd. Whilst with
Normandy he fulfilled a number of planning, finance, M&A and
commercial roles, including the establishment of a Group Supply
Function and three years based in Rio de Janeiro as the CFO of
TVX Normandy Americas.
Since 1998 he has been involved in mining and contracting
companies in the position of CFO and more latterly, CEO roles
with an emphasis on strategy and corporate finance.
Other current listed directorships
None
Previous listed directorships (last three years)
Oakdale Resources Limited
16
Reliable energy for South AustraliaDirectors’ ReportFor personal use only
Gregory D English LLB, B.Eng (Mining)
Non-Executive Director
Audit and Risk Committee Member
Director since 2015
Zhe Wang B.Sc (Thermal Dynamics)
M.Eng (Energy Engineering and Thermal Physics)
Non-Executive Director
Director appointed effective from 1.7.2017
Experience & expertise
Mr English is an experienced and qualified mining engineer and
lawyer with over 25 years of involvement in the resources
industry. As a mining engineer he has worked on underground
and open pit coal mines, including working as a mining engineer
at the Leigh Creek Coalfield where he lived in the Leigh Creek
town. As a lawyer Greg has acted for numerous oil and gas
companies and advised on numerous gas marketing, gas
transportation and similar transactions.
Greg’s experience in the coal industry, and in particular his
knowledge of the Leigh Creek Coalfield, and experience and
contacts in the oil and gas industry is a significant asset to the
Company.
Experience & expertise
Zhe joined the Leigh Creek Energy Board as a Non-Executive
Director on 1 July 2017.
Zhe is a Chinese based Energy and Thermal Physics Engineer,
and nominee of China New Energy Group Limited (one of Leigh
Creek Energy’s major shareholders). He has over 8 years
Executive Management experience. Zhe also sits on the Board of
Beijing Raise Mind Technology Ltd. Zhe’s key areas of expertise
include; Coal Combustion; Renewable Energy Applications and
Steel Sinter. He has a Bachelor of Thermo Dynamics, Renewable
Energy Applications as well as a Masters in Energy Engineering
and Thermal Physics, Coal Combustion.
Other current listed directorships
Archer Exploration Limited and Core Exploration Limited
Other current listed directorships
None
Previous listed directorships (last three years)
None
Previous listed directorships (last three years)
None
Murray K Chatfield B Com Ag (Economics and
Marketing), MBA, ACT, MAICD
Non-Executive Director
Audit and Risk Committee Chair
Director since 2016
Experience & expertise
Mr Chatfield has extensive experience within finance with nearly
30 years’ experience within investment banking, hedge funds and
corporate finance both in Australia and internationally. He was a
senior Economist with the New Zealand government before joining
Bankers Trust in London. He then moved into Hedge Funds
initially as European Treasurer and then as a Partner and COO in a
Relative Value Hedge Fund. He was the COO and Partner in an
Australian based fund focussed on Global Macro events. He has
been and is still, actively involved as a Director of several unlisted
companies in the Commodity and Marketing areas. Mr Chatfield’s
career covers finance, treasury, accounting, operational
efficiency, risk management (business, market, tax and
regulatory), legal and regulatory compliance and direct financial
market interaction.
Other current listed directorships
None
Previous listed directorships (last three years)
None
Zheng Xiaojiang B Com
Non-Executive Director
Director appointed effective from 5.12.2017
Experience & expertise
Zheng joined the Leigh Creek Energy Board as Non-Executive
Director on 5 December 2017.
Zheng is a senior finance executive and brings wide experience in
the finance sector in both Australia and China. His experience
includes having been a senior official for The People’s Bank of
China in Australia and New Zealand. Zheng was responsible for
facilitating the investment in LCK by China New Energy, LCK’s
largest shareholder.
Other current listed directorships
None
Previous listed directorships (last three years)
None
17
Reliable energy for South AustraliaLEIGH CREEK ENERGY LIMITED ANNUAL REPORT 2018For personal use only
The construction and operation of the PCD facility is a
major de-risking event for LCK and a significant step
toward commercialisation plans for the LCEP. With the
on-site construction of the PCD effectively complete, the
operations phase will:
1. Demonstrate the production of syngas from LCK’s
gasification technology at Leigh Creek
2. Demonstrate that LCK can operate the ISG gasifier
safely and in an environmentally responsible manner
3. Deliver the economic parameters for final design and
planning of the commercial plant
4. Provide environmental and process data required for
commercial scale approvals
5. Provide the information required for the review of the
existing SPE-PRMS 2C 2963.9 PJ resource and the
expected partial conversion from contingent resources
to reserves (refer ASX announcement 8 January 2016)
In parallel to the PCD approvals and construction the
Company has been developing plans to generate
electricity from a small gas fired power station ahead of
its full-scale commercial project. This small-scale project
will enable the larger scale project stage by providing the
following benefits:
• Manageable project size;
• Low CAPEX and operational risk;
• Simple design;
• No redundant capital - power plant is used for large-
scale project;
• Minimal offsite infrastructure requirement;
• Early cash flows;
• Importantly a commercial stepping stone, providing
proof of commerciality on the path to the large scale
project.
Information provided by operating the PCD under
different parameters will inform the design of this phase
of the LCEP.
Company Secretary
Jordan Mehrtens is a qualified lawyer, and has other
qualifications in finance and urban and regional planning.
Jordan has worked with Leigh Creek Energy since its
commencement, providing regulatory, compliance and
other analytical advice. Jordan is a member of the
Governance Institute of Australia and performs the
secretarial role in the Company. Jordan has been
the Company Secretary of Leigh Creek Energy Limited
since 2015.
Principal Activities
The principal activity of the Group was advancing the
development of its Leigh Creek Energy Project (LCEP).
Review of operations and financial results
Leigh Creek Energy Project:
The Company continued its progress towards full
regulatory approval, above and underground
construction and subsequent operation of the pre-
commercial demonstration (PCD) at the LCEP. PCD
operation is scheduled to commence in the third quarter
of 2018.
During the year the Company received approval of its
Statement of Environmental Objectives (SEO) for the
Company’s PCD stage of the LCEP. This constitutes the
environmental approval for PCD operations and follows
completion of the public consultation stage for the PCD.
These are key documents required for Government
approvals for the PCD operations. LCK must submit three
Activity Notifications to advise the Regulator of the
specific activities that are to be undertaken under the
framework of the SEO. The status of the these is as
follows:
1. PCD Process well drilling – received 15 May 2018;
2. PCD Aboveground plant construction – received 29
May 2018; and
3. PCD Operations including operating,
decommissioning and monitoring - pending.
The key LCEP activities undertaken on site during the
period included the completion of a 15 hole monitoring
well drilling program and the advancement of the PCD
process well drilling and aboveground plant construction,
both of which have been completed in the third quarter of
2018. Upon receipt of the final Activity Notification
approval from Government for PCD Operations, the
LCEP is expected to progress rapidly to production of
first syngas.
18
Reliable energy for South AustraliaDirectors’ ReportFor personal use only Finance and Corporate:
The consolidated operating loss of the financial year to
30 June 2018 was $6,018,850 (2017: ($5,758,760)).
Expenditure incurred on the LCEP capitalised as
Exploration expenditure, net of 2016/17 R&D tax offset
rebates received ($2,173,372) and R&D rebates
receivable for 2017/18 ($9,010,220), was $10,414,426
(2017: $3,535,245).
The Company has a working capital facility with the
Commonwealth Bank of Australia (CBA) to bring forward
access to refundable R&D tax concessions (refer Note 10
for Borrowings). This has provided LCK with the flexibility
to bring forward its tax offsets by providing a draw down
on eligible expenditure and for CBA to be repaid from the
company’s taxation return rebate. In June 2018 LCK
extended the Facility to December 2019 and the facility
limit was increased to $10.5m. Following receipt of the
2017/18 ATO rebate and clean down of the Facility the
limit will decrease to $3.6m to match anticipated 2018/19
tax rebates. A total of $3,830,000 was drawn under the
extended facility as at 30 June 2018.
In March 2017, Leigh Creek Energy signed a subscription
agreement with China New Energy Group Limited (CNE)
for the issue of 136.3 million Leigh Creek Energy Limited
Ordinary Shares in three tranches at an average issue
price of $0.147 per share. On 27 October 2017, China
New Energy Group Limited (CNE) completed the final
tranche of their $20 million investment in the Company
increasing their interest to 32.78% of capital on issue.
In June 2018 the Company successfully launched a
capital raising incorporating a private placement of 36.9m
new fully paid ordinary shares in the Company on 25th
June to institutional, sophisticated and professional
investors at an issue price of A$0.16 per Share. The other
components of the raising included:
• a Share Purchase Plan (SPP) of up to 18,750,000
Shares launched on 25 June 2018 giving shareholders
the opportunity to purchase up to $15,000 of Shares
at a price of $0.16 each;
• a SPP shortfall facility;
• on completion of these steps and shareholder
approval, a CNE placement enabling it to return to its
percentage shareholding pre-capital raising of 32.78%.
Upon shareholders approving the final tranche and the
shares being placed to CNE the capital raising will total
$13.24 million (before fees) - the placement of 27,126,447
shares to China New Energy Group Limited (CNE) at 16
cents per share to raise $4.34m being the final tranche.
This placement is subject to shareholder approval at a
General Meeting of shareholders on 22 August 2018.
In July 2017 the Company appointed Zhe Wang as Non-
Executive Director and CNE delegate (on completion of
the second tranche of the CNE investment CNE were
granted the right to a seat on the Board of Directors) and
subsequently announced on 6 December 2017 the
appointments of Mr Zheng Xiaojiang as Non-Executive
Director and Mr Phillip Staveley as Managing Director,
further strengthening the board.
The Chairman’s report contains further information on the
detailed operations of the Group during the year.
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.
Significant changes in state of affairs
No significant change in the state of affairs of the Group
occurred during the financial year, other than as already
referred to in this report.
Likely developments, prospects and business strategies
Final operational approvals are currently being sought for
the pre-commercial development phase of the project
with operations scheduled to commence in the third
quarter of 2018. In the context of the current and forecast
gas, electricity and fertilizer markets, it is anticipated that
the Company will then become an attractive business
partner.
The Group will require further capital to sustain its
activities.
After reporting date events
1. A total of 9,510,000 new ordinary shares were issued
to participating shareholders at A$0.16 per share
under the SPP on 20 July 2018. The Company
reserved the right to place the unsubscribed balance
of the SPP.
2. On 30 July 2018 a total of 9,240,000 new ordinary
shares were issued to institutional and sophisticated
investors who are primarily existing shareholders of
the Company at $0.16 per Share, to place the shortfall
from the SPP.
3. Employee Share Options were issued on 18 July 2018
– total of 5,790,000 options issued at an exercise price
of $0.251, expiring on 16 July 2022.
4. A General Meeting was held on 22 August 2018 to
approve a placement to CNE of 27,126,447 shares at
16 cents per share to raise $4.34m. Upon approval
and placement, CNE return to its percentage
shareholding pre-capital raising of 32.78%. In addition,
shareholders were asked to approve the issue of
4,000,000 unlisted options to directors and 1,000,000
to the Company Secretary at an exercise price of
$0.35 expiring on 17 April 2023, and 5,000,000
unlisted options to executive directors at an exercise
price of $0.246 expiring on 3 July 2022.
19
Reliable energy for South AustraliaLEIGH CREEK ENERGY LIMITED ANNUAL REPORT 2018For personal use only 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:
Options forfeited during the period up to and including
the date of this report include 680,000 cancelled upon
resignation and a further 977,500 options having expired
due to vesting conditions not being met.
Director
Board meetings
Audit & Risk Committee
Meetings Meetings
attended
held
Meetings
held
Meetings
attended
D J Peters
P J Staveley
G D English
M K Chatfield
Z Wang
Z Xiaojiang
10
5
10
10
10
5
10
5
10
10
10
5
4
-
4
4
-
-
4
-
4
4
-
-
Unissued shares under options
At the date of this report, the unissued ordinary shares of
Leigh Creek Energy Limited under unlisted and listed
options are as follows:
Grant Date
Date of
expiry
Exercise
Number
price
under option
14 October 2015
14 October 2019
$0.212
1,000,000
14 October 2015
14 October 2020
$0.25
1,000,000
1 December 2015
31 July 2020
$1.50
1,000,000
1 December 2015
30 November 2020
$0.30
8,090,000
27 June 2016
31 October 2018
$0.20
1,500,000
27 June 2016
31 October 2018
$0.22
1,500,000
27 June 2016
31 October 2018
$0.24
1,500,000
27 June 2016
31 October 2018
$0.26
1,500,000
11 July 2016
30 November 2020
$0.49
27,500
15 July 2016
11 May 2019
$0.30
1,500,000
15 July 2016
8 May 2021
$0.30
800,000
4 October 2016
10 October 2021
$0.35
2,000,000
4 October 2016
10 October 2021
$0.45
2,000,000
10 July 2017
30 November 2020
$0.30
306,000
17 July 2018
16 July 2022
$0.251
5,790,000
Total
29,513,500
Options granted during the period up to and including
the date of this report to employees and consultants
include 636,000 with an expiry date of 30 November 2020
(330,000 subsequently cancelled upon resignation) and
5,790,000 with an expiry date of 16 July 2020 .
Options granted but not yet issued at the date of this
report include 4,000,000 director options and 1,000,000
company secretary options (related party) granted 18th
April 2018 with issue subject to shareholder approval on
22nd August 2018. In addition, 5,000,000 director options
were granted 4th July 2018 with issue also subject to
shareholder approval on 22nd August 2018.
A number of listed options (17,687,463 at an exercise
price of $0.50) were issued as part of the prospectus for
the capital raising finalised in May 2016. The listed
options lapsed unexercised on the 6th June 2018 and as
such there are nil listed options over shares of the Group
at the end of the financial year.
During the year ended 30 June 2018, and to the date of
this report no ordinary shares of Leigh Creek Energy
Limited were issued on the exercise of options. None of
the options on issue entitles the holders to participate, by
virtue of the options, in any dividend or share issue of the
Company.
Proceedings
The Company is not currently a party to legal
proceedings brought against it or initiated by it at the
date of this report.
Environmental issues
The Company and subsidiaries are required to comply
with various Commonwealth and State environmental
legislation in relation to its planned exploration activities
and future development at the Leigh Creek site.
No notification of any breach of any environmental
regulation has been received in respect of any of the
Company’s exploration activities during the year.
Indemnities given to, and insurance premiums paid for, officers
During the year, the company paid a premium to insure
officers of the Group. The officers of the Group covered
by the insurance policy include all Directors.
The liabilities insured are legal costs that may be incurred
in defending civil or criminal proceedings that may be
brought against the officers in their capacity as officers of
the Group, and any other payments arising from liabilities
incurred by the officers in connection with such
proceedings, other than where such liabilities arise out of
conduct involving a willful breach of duty by the officers
or the improper use by the officers of their position or of
information to gain advantage for themselves or someone
else to cause detriment to the Group.
20
Reliable energy for South AustraliaDirectors’ ReportFor personal use only
Details of the amount of the premium paid in respect of
insurance policies are not disclosed as such disclosure is
prohibited under the terms of the contract.
The Group has not otherwise, during or since the end of
the financial year, except to the extent permitted by law,
indemnified or agreed to indemnify any current or former
officer of the Group against a liability incurred as such by
an officer.
Non-audit services
During the year, Grant Thornton Audit Pty Ltd, the
Company’s auditors, did undertake a review of the
Employee Share Option Plan in addition to their statutory
audit duties. Grant Thornton Corporate Finance Pty Ltd
(Sydney) prepared an Independent Expert Report in July
2017. The amounts paid for non-audit services are
$55,750.
Auditor’s Independence Declaration
The Auditor’s Independence Declaration for the year
ended 30 June 2018 can be found on page 29 and forms
part of the Directors’ Report.
Proceedings on behalf of the Company
No person has applied to the Court under section 237 of
the Corporations Act 2001 for leave to bring proceedings
on behalf of the Company, or to intervene in any
proceedings to which the Company is a party, for the
purpose of taking responsibility on behalf of the
Company for all or part of those proceedings.
21
Reliable energy for South AustraliaLEIGH CREEK ENERGY LIMITED ANNUAL REPORT 2018For personal use only 1. Principles used to determine the nature and amount of
remuneration
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 $750,000 per
annum (as approved by shareholders on 22 August
2018). 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.
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 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, and can also be used as a reward for
performance.
As the Company is developing an energy asset which
is not yet in production, 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.
Voting at 2017 AGM
Of the total valid available votes lodged, Leigh Creek
Energy received 83.67% “yes” votes on its
remuneration report for the 2017 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.
Use of remuneration consultants
The Company has engaged and sought
benchmarking advice from remuneration consultants.
In 2018 independent consultants were engaged to
undertake market benchmarking to provide
information on KMP remuneration.
The Corporations Act 2001 requires companies to
disclose specific details regarding the use of
remuneration consultants. The mandatory disclosure
requirements only apply to those advisors who
provide a “remuneration recommendation” as defined
in the Corporations Act 2001. The Board did not
receive any remuneration recommendations during
the reporting period.
22
Reliable energy for South AustraliaRemuneration Report – auditedFor personal use only 2. Details of remuneration
Details of the nature and amount of each element of the remuneration of each Key Management Personnel (KMP)
of the Group are shown in the table below:
Short term benefits
Post employment
benefits
Termination
benefits
Share based
payments
Year
Directors
fees
Salary and
wages
Other Non-monetary
benefits 1
Super
contributions $
Options 2
Total
Executive directors
D J Peters
P J Staveley5
D K Shearwood3
Non-executive directors
G D English
M Chatfield
Z Wang5
Z Xiaojiang5
2018
2017
2018
2017
2018
2017
2018
2017
2018
2017
2018
2017
2018
2017
-
-
-
-
-
-
309,790
300,000
324,877
275,000
-
68,750
50,000
50,000
50,000
50,192
29,168
-
28,782
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
21,019
-
115,0006
-
Other key management personnel
2018
2017
2018
2017
2018
2017
-
-
-
-
-
-
282,500
275,000
257,000
250,000
-
72,917
-
-
-
-
-
-
J Haines
M Terry7
G Marsden
Total
Notes
4,402
6,262
3,926
-
-
8,267
-
-
-
-
-
-
-
-
892
1,247
-
-
-
-
27,470
28,500
28,268
26,125
-
6,531
4,750
4,750
4,750
4,768
2,771
-
2,734
-
26,838
26,125
24,415
23,750
-
6,927
-
-
-
-
4,723
5,655
13,792
63,658
346,385
340,417
370,863
364,783
-
305,1634
-
(5,306)
-
383,405
-
-
-
-
-
-
-
-
-
-
-
-
-
12,498
-
(97,942)8
-
(91,171)8
54,750
(43,192)
54,750
(36,211)
114,161
-
167,119
-
114,161
-
260,677
-
13,792
63,658
6,896
31,829
-
6,803
324,022
366,030
288,311
305,579
-
99,145
2018
2017
157,950
100,192
1,174,167
1,241,667
136,019
-
9,220
15,776
121,996
127,476
-
317,661
267,525 1,866,877
(22,816) 1,779,956
1
2
3
4
5
6
7
8
Non monetary benefits include benefits provided to the KMP on which Fringe Benefits tax is paid.
In accordance with the Accounting Standards, remuneration includes a proportion of the notional value of the options granted or outstanding during the year.
The notional value of options is determined as at the issue date and is progressively allocated over the vesting period. The amount included as remuneration
is not indicative of the benefit (if any) that the employee may ultimately realise should the option vest. The notional value of the options as at the issue date
has been determined in accordance with the accounting policy Employee Remuneration Note 11.
Mr Shearwood was made redundant on 30 September 2016.
Under the terms of Mr Shearwood’s termination, he received a redundancy payment of $293,000 plus unused leave.
Options were granted on a provisional basis to Non-Executive Directors on 18th April 2018. As the remuneration is required to be approved by shareholders,
the options will be granted and issued following approval at General Meeting in August 2018. Under accounting rules, the options were expensed in the
financial year based on the provisional grant date
Mr Xiaojiang provided consulting services during the year.
Mr Terry resigned effective 17 August 2018.
Options were approved at the AGM in September 2016 for these directors. Under accounting rules, the options were expensed in the previous financial year
using 30 June 2016 as the provisional grant date. An adjustment to accounting expense has been completed in this financial year to true-up the expense
based on the actual grant date price.
23
Reliable energy for South AustraliaLEIGH CREEK ENERGY LIMITED ANNUAL REPORT 2018For personal use only
3. Service agreements
Remuneration and other terms of employment for the
Executive Directors and other Key Management
Personnel are formalised in a Service Agreement. The
major provisions of the agreement relating to
remuneration are set out below:
The options were provided at no cost to the recipients.
All options expire on the earlier of the expiry date or
cessation of the individual‘s employment (except
retiring directors).
Options issued in previous financial years that lapsed
or were forfeited during the current financial year:
Employee
Base salary
Term of agreement
Notice period
D J Peters
$309,790
Ongoing
3 months
P J Staveley1
$350,000
Ongoing
6 months
Name
Number of options
forfeited (lapsed)
during the year
Financial year in
which those options
were granted
J Haines
M Terry
Notes
$282,500
$255,000
Ongoing
12 months
M Chatfield
25,0001
2016
Ongoing
3 months
Notes:
1 Mr Chatfield acquired 25,000 Listed Options in the May 2016 share placement
which lapsed unexercised during the period.
1 Salary effective from 5 December 2017 being date of appointment as
Managing Director.
2 Service agreements are presented as at 30 June 2018.
4. Share-based remuneration
Unlisted options are granted to Directors and Key
Management Personnel as part of their remuneration.
The options are not granted subject to performance
criteria, but are issued to the relevant directors and
Key Management Personnel of the Group to increase
goal congruence between executives, directors and
shareholders. All options refer to options over ordinary
shares of the Company, which are exercisable on a
one-for-one basis under the terms of the agreements.
Options granted during this financial year:
Name
Number Grant
date
granted
Number
vested
18 April
2018
18 April
2018
-
-
Z Wang 1
-
Z Xiaojiang 1
-
Total
-
Note:
Vesting and
first exercise
date
Last
exercise
date
-
-
17 April
2023
17 April
2023
1 Options were granted on a provisional basis to Non-Executive Directors on
18th April 2018. As the remuneration is required to be approved by
shareholders, the options will be granted and issued following approval at
General Meeting in August 2018. Under accounting rules, the options were
expensed in the financial year based on the provisional grant date.
24
Reliable energy for South AustraliaRemuneration Report – auditedFor personal use only
A U D I T O R ’ S I N D E P E N D E N C E
5. Other information
Number of options held by Key Management P ersonnel
The number of options to acquire ordinary shares in the Company held during the 2018 reporting period by each of
the Group’s Key Management Personnel, including their related parties, is set out below:
Name
Balance at
start of year
Granted as
remuneration
Exercised
Other changes
Closing balance
Vested and
exercisable at
the end of the
reporting period
Vested and
unexercisable
at the end of the
reporting period
D J Peters
750,000
P J Staveley
2,000,000
G D English
2,000,000
M Chatfield 1
2,025,000
Z Wang 2
Z Xiaojiang 2
J Haines
M Terry
Total
Notes:
-
-
2,000,000
1,000,000
9,775,000
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
750,000
250,000
2,000,000
1,000,000
2,000,000
2,000,000
(25,000)
2,000,000
2,000,000
-
-
-
-
-
-
-
-
2,000,000
1,000,000
1,000,000
500,000
(25,000)
9,750,000
6,750,000
-
-
-
-
-
-
-
-
-
1 Mr Chatfield acquired 25,000 Listed Options in the May 2016 share placement which lapsed unexercised during the period.
2 Options that form part of Non-Executive Director remuneration package have been granted on a provisional basis subject to approval of shareholders in August 2018,
and as such are not reported in this table.
Number of shares held by Key Management Personnel
The number of ordinary shares in the Company during the 2018 reporting period held by each of the Group’s Key
Management Personnel, including their related parties, is set out below:
Name
D J Peters
P J Staveley2
G D English
M Chatfield2
Z Wang
Z Xiaojiang3
J Haines
M Terry
Total
Notes:
Balance at
start of year
Granted as
remuneratione
Received on
exercise
Other changes1
Held at the end
of the reporting
-
550,000
-
1,308,914
-
-
-
-
1,858,914
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
550,000
-
1,308,914
-
-
-
-
1,858,914
1 Other changes include purchases, sales or transfers during the financial year
2 M Chatfield and P Staveley both acquired shares under the SPP in July 2018.
3
Xiaojiang has an interest in 12,470,921 shares held by Crown Ascent Development Limited due to having a 25% interest in Crown.
Date of change was 29 May 2018.
25
Reliable energy for South AustraliaLEIGH CREEK ENERGY LIMITED ANNUAL REPORT 2018For personal use only
C O R P O R AT E G O V E R N A N C E S TAT E M E N T
Loans to Key Management Personnel
At balance date, the Group does not have any
outstanding receivables relating to loans to employees or
Key Management Personnel.
Related party transactions
During the reporting period:
Piper Alderman lawyers were paid $82,909 (2017:
$78,015) for legal services rendered to the Group. Greg
English is a partner at Piper Alderman lawyers;
ARK Energy Ltd had a service agreement in place with
the Company for facilities and accounting services. Fees
rendered to the Company were $14,700 (2017: $32,586),
of which $9,432.85 remans unpaid at the date of this
report. Prior to joining the LCK Board, Mr Philip Staveley
resigned on 5 December from being a director of ARK
Energy Ltd prior to joining the LCK Board;
Investment Company Services Pty Ltd were paid $60,116
(2017: $Nil) for providing investor relations services to
the Group. The party is related to Mr Peters, Executive
Chairman. A market capitalisation performance fee is
payable under the contract to a maximum value of
$500,000, less any fees earned, payable in shares. This
fee is only payable if the average weighted share price
exceeds $0.30 for a consecutive 45 day period prior to
31 December 2018. The contract expires on 31
December 2018;
A related party incurred travel reimbursements totalling
$1,553. The related party, Allied Resources Partners Pty
Ltd, is related to Mr Peters, Executive Chairman;
End of audited remuneration report
26
Reliable energy for South AustraliaRemuneration Report – auditedFor personal use only Grant Thornton Audit Pty Ltd continues in office in
accordance with Section 327 of the Corporations Act 2001.
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 2018 has been received and is
included in this report.
Signed in accordance with a resolution of the Board.
D J Peters
Director
Dated at Adelaide, South Australia this 22nd day of
August 2018
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 statement of revised principles and the Company’s
compliance with each principle are set out in the
Company’s website www.lcke.com.au
27
Reliable energy for South AustraliaLEIGH CREEK ENERGY LIMITED ANNUAL REPORT 2018Corporate Governance StatementAuditor’s IndependenceFor personal use only 1. In the opinion of the Directors of Leigh Creek Energy Limited:
a. The consolidated financial statements and notes of the company are in accordance
with the Corporations Act 2001, including:
i.
ii.
Giving a true and fair view of the financial position as at 30 June 2018 and of the
performance of the Group for the year ended on that date; and
Complying with Australian Accounting Standards (including the Australian
Accounting Interpretations) and the Corporations Regulations 2001; and
b. There are reasonable grounds to believe that the company will be able to pay its
debts as and when they become due and payable.
2. The Directors have been given the declarations required by Section 295A of the
Corporations Act 2001 from the Chief Executive Officer and Chief Financial Officer for
the financial year ended 30 June 2018.
3. Note 1 confirms that the consolidated financial statements also comply with
International Financial Reporting Standards.
This declaration is made in accordance with a resolution of the Board of Directors.
D J Peters
Director
Dated at Adelaide, South Australia this 22nd day of August 2018
28
Reliable energy for South AustraliaDirectors’ DeclarationFor personal use only
Grant Thornton House
Level 3
170 Frome Street
Adelaide SA 5000
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 2018, 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 Audit Pty Ltd
Chartered Accountants
I S Kemp
Partner – Audit & Assurance
Adelaide, 22 August 2018
Grant Thornton Audit Pty Ltd ACN 130 913 594
a subsidiary or related entity of Grant Thornton Australia Ltd ABN 41 127 556 389
www.grantthornton.com.au
‘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.
29
Reliable energy for South AustraliaLEIGH CREEK ENERGY LIMITED ANNUAL REPORT 2018Auditor’s Independence DeclarationFor personal use only
30
Reliable energy for South AustraliaFor personal use only D I R E C T O R S ’ R E P O R T
8
1
0
2
T
R
O
P
E
R
L
A
U
N
N
A
D
E
T
I
M
I
L
Y
G
R
E
N
E
K
E
E
R
C
H
G
I
E
L
3131
Reliable energy for South AustraliaLEIGH CREEK ENERGY LIMITED ANNUAL REPORT 2018Financial InformationFor personal use only
Other revenue
Other expenses
Depreciation of property, plant and equipment
Notes
2a
2b
2018
$
55,000
2017
$
53,731
(2,711,097)
(2,581,694)
(39,951)
(35,251)
Employee benefits expense
11
(3,192,731)
(3,171,452)
Finance income
Finance 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)
The accompanying notes form part of these financial statements.
(5,888,779)
(5,734,666)
180,645
(310,716)
54,011
(78,105)
(6,018,850)
(5,758,760)
-
-
(6,018,850)
(5,758,760)
-
-
(6,018,850)
(5,758,760)
(0.02)
(0.02)
(0.02)
(0.02)
3a
3b
4
20
20
32
Reliable energy for South AustraliaConsolidated Statement Of Profit Or Loss And Other Comprehensive Income For personal use only
Assets
Current
Cash assets
Trade and other receivables
Other financial assets
Total Current Assets
Non-current
Property, plant and equipment
Exploration and evaluation expenditure
Total Non-Current Assets
Total assets
Liabilities
Current
Trade and other payables
Borrowings
Employee entitlements
Total Current liabilities
Total liabilities
Net assets
Equity
Equity attributable to owners of the parent:
Share capital
Share option reserve
Retained losses
Total equity
The accompanying notes form part of these financial statements.
Notes
2018
$
2017
$
5
6
7
8
9
10
11
9,323,648
8,757,787
9,359,171
2,358,752
142,434
-
18,825,253
11,116,539
282,658
220,720
16,400,151
5,985,725
16,682,809
6,206,445
35,508,062
17,322,984
5,757,263
1,656,968
3,830,000
1,540,049
538,584
298,499
10,125,847
3,495,516
10,125,847
3,495,516
25,382,215
13,827,468
12
13
58,327,054
41,100,034
1,802,721
1,456,144
(34,747,560)
(28,728,710)
25,382,215
13,827,468
33
Reliable energy for South AustraliaLEIGH CREEK ENERGY LIMITED ANNUAL REPORT 2018Consolidated Statement Of Financial PositionFor personal use only
Share
capital
$
Retained
losses
$
Share option
reserve
$
Total
equity
$
Balance 1 July 2017
41,100,034
(28,728,710)
1,456,144
13,827,468
Total comprehensive income
Total profit or (loss)
Other comprehensive income
Total comprehensive income
-
-
-
(6,018,850)
-
(6,018,850)
Transactions with members in their capacity as owners:
Issued of share capital (net of costs)
Employee share based payment options
Total transactions with owners
17,227,020
-
17,227,020
-
-
-
-
-
-
-
(6,018,850)
-
(6,018,850)
17,227,020
346,577
346,577
346,577
17,573,597
Balance at 30 June 2018
58,327,054
(34,747,560)
1,802,721
25,382,215
Balance 1 July 2016
32,361,720
(22,969,950)
1,395,284
10,787,054
Total comprehensive income
Total profit or (loss)
Other comprehensive income
Total comprehensive income
-
-
-
(5,758,760)
-
(5,758,760)
Transactions with members in their capacity as owners:
Issued of share capital (net of costs)
Employee share based payment options
Total transactions with owners
8,738,314
-
8,738,314
-
-
-
-
-
-
-
60,860
60,860
(5,758,760)
-
(5,758,760)
8,738,314
60,860
8,799,174
Balance at 30 June 2017
41,100,034
(28,728,710)
1,456,144
13,827,468
The accompanying notes form part of these financial statements.
34
Reliable energy for South AustraliaConsolidated Statement Of Changes In Equity For personal use only
Cash flows from operating activities
Sundry income received
Interest paid
Interest received
R&D rebates received
Payments to suppliers and employees
Notes
2018
$
55,000
-
180,610
2017
$
20,000
(5,288)
34,411
2,173,372
834,555
(5,543,770)
(5,458,337)
Net cash (used in) operating activities
16(b)
(3,134,788)
(4,574,659)
Cash flows from investing activities
Purchase of property, plant & equipment
Proceeds from disposal of assets
Capitalised exploration costs
Net cash (used in) investing activities
Cash flow from financing activities
Issue of shares
Share issue transaction costs
Proceeds from borrowings
Payment of borrowing costs
(Repayments) of borrowings
Net cash from / (used in) financing activities
Net change in cash and cash equivalents
Cash and cash equivalents, beginning of year
(110,637)
(126,955)
-
29,063
(15,394,967)
(5,611,122)
(15,505,604)
(5,709,014)
18,414,559
9,315,764
(1,187,540)
(577,450)
4,170,000
1,610,000
(240,766)
(94,800)
(1,950,000)
-
19,206,253
10,253,514
565,861
(30,159)
8,757,787
8,787,946
Cash and cash equivalents, end of year
16(a)
9,323,648
8,757,787
The accompanying notes form part of these financial statements.
35
Reliable energy for South AustraliaLEIGH CREEK ENERGY LIMITED ANNUAL REPORT 2018Consolidated Statement Of Cash FlowsFor personal use only
d. Changes in accounting policy
New and revised standards that are effective for these
financial statements
A number of new and revised standards became
effective for the first time to annual periods beginning
on or after 1 July 2017. Information on the more
significant standards is presented below.
(i) 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:
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.
The adoption of these amendments has not had a
material impact on the Group.
1. Summary of significant accounting policies
The principal activity of the Group was pursuing the
development of its Leigh Creek Energy Project.
a. General information and statement of compliance
The consolidated general purpose financial
statements have been prepared in accordance with
the Corporations Act 2001, Australian Accounting
Standards and other authoritative pronouncements of
the Australian Accounting Standards Board (AASB).
Compliance with Australian Accounting Standards
results in full compliance with the International
Financial Reporting Standards (IFRS) as issued by the
International Accounting Standards Board (IASB).
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.
Leigh Creek Energy Limited is the Group’s Ultimate
Parent Company. Leigh Creek Energy Limited is a
listed public company, incorporated and domiciled in
Australia. The address of the registered office and its
principal place of business is Level 11, 19 Grenfell
Street, Adelaide SA 5000.
The consolidated financial statements for the year
ended 30 June 2018 were approved and authorised
for issue by the Board of Directors on 22nd August
2018.
b. Overall considerations
The consolidated financial statements have been
prepared on an accruals basis and are 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.
c. Basis of consolidation
The Group financial statements consolidate those of
the Parent Company and all of its subsidiaries as of 30
June 2018. 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 17
to the financial statements.
All inter-company balances transactions and balances
between Group companies are eliminated on
consolidation. Amounts reported in the financial
statements of subsidiaries have been adjusted where
necessary to ensure consistency with the accounting
policies adopted by the Group.
36
Reliable energy for South AustraliaNotes to the Financial Statements for the year ending June 30, 2018For personal use only 1. Summary of significant accounting policies continued
Accounting standards issued but not yet effective and not
been early adopted by the Group
The accounting standards that have not been early
adopted for the year ended 30 June 2018, 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.
(iv) AASB 2016-2 Amendments to Australian Accounting
Standards – Disclosure Initiative: Amendments to AASB 107
This amendment alters AASB 107 Statement of Cash
Flows to require entities preparing financial
statements in accordance with Tier 1 reporting
requirements to provide disclosures that enable users
of financial statements to evaluate changes in
liabilities arising from financing activities, including
both changes arising from cash flows and non-cash
changes.
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 2015-2 Amendments to Australian Accounting
Standards – Disclosure Initiative: Amendments to AASB 101
Presentation of Financial Statements
The Standard makes amendments arising from the
IASB’s Disclosure Initiative project. 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 AASB 101
for identifying a significant accounting policy
The adoption of these amendments has not had a
material impact on the Group.
(iii) AASB 2015-9 Amendments to Australian Accounting
Standards – Scope and Application Paragraphs
This amendment inserts scope paragraphs into
AASB 8 Operating Segments and AASB 133 Earnings
per Share in place of application paragraph text in
AASB 1057.
In July and August 2015, the AASB reissued AASB 8,
AASB 133 and most of the Australian Accounting
Standards that incorporate IFRSs to make editorial
changes. The application paragraphs in the previous
versions of AASB 8 and AASB 133 covered scope
paragraphs that appear separately in the
corresponding IFRS 8 and IAS 33. In moving those
application paragraphs to AASB 1057 when AASB 8
and AASB 133 were reissued in August, the AASB
inadvertently deleted the scope details from AASB 8
and AASB 133. This amending Standard puts the
scope details into those Standards, and removes the
related text from AASB 1057. There is no change to
the requirements or the applicability of AASB 8 and
AASB 133.
The adoption of these amendments has not had a
material impact on the Group.
37
Reliable energy for South AustraliaLEIGH CREEK ENERGY LIMITED ANNUAL REPORT 2018For personal use only 1. Summary of significant accounting policies continued
AASB 9 requirements regarding hedge accounting
(v) 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.
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.
(vi) AASB 2016-5 Amendments to Australian Accounting
Standards – Classification and Measurement of Share-based
Payment Transactions
This Standard amends AASB 2 Share-based Payment,
clarifying how to account for certain types of share-
based payment transactions. The amendments provide
requirements on the accounting for:
• The effects of vesting and non-vesting conditions on
the measurement of cash-settled share-based
payments
• Share-based payment transactions with a net
settlement feature for withholding tax obligations
• A modification to the terms and conditions of a share-
based payment that changes the classification of the
transaction from cash-settled to equity-settled.
When this standard is first adopted for the year ending
30 June 2019, there will be no impact on the
transactions and balances recognised in the financial
statements.
(vii) AASB 16 Leases
• replaces AASB 117 Leases and some lease-related
Interpretations;
• requires all leases to be accounted for ‘on-balance
sheet’ by lessees, other than short-term and low
value asset leases;
• provides new guidance on the application of the
definition of lease and on sale and lease back
accounting;
• largely retains the existing lessor accounting
requirements in AASB 117; and
• requires new and different disclosures about leases
As this Standard will be first adopted for the year
ending 30 June 2020, the company is yet to undertake
a detailed assessment of the impact of AASB 16.
Based on the company’s preliminary assessment
however, the Standard is not expected to have a
material impact on the transactions and balances
recognised in the financial statements when it is first
adopted for the year ending 30 June 2020.
38
Reliable energy for South AustraliaNotes to the Financial Statements for the year ending June 30, 2018 For personal use only
1. Summary of significant accounting policies continued
(viii) AASB 15 Revenue from Contracts with Customers
• replaces AASB 118 Revenue, AASB 111
Construction Contracts and some revenue-related
Interpretations:
− establishes a new revenue recognition model
− changes the basis for deciding whether revenue
is to be recognised over time or at a point in time
− provides new and more detailed guidance on
specific topics (e.g. multiple element
arrangements, variable pricing, rights of return,
warranties and licensing)
g. Goods and Services Tax (GST)
Revenues, expenses and assets are recognised net of
the amount of GST, unless the 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. The net amount
of GST recoverable from the Australian Tax Office is
included with other receivables in the statement of
financial position.
Cash flows are presented in the cash flow statement
− expands and improves disclosures about
on a GST inclusive basis.
h. 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.
revenue
As this Standard will be 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.
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.
e. 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.
f. Segment reporting
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.
39
Reliable energy for South AustraliaLEIGH CREEK ENERGY LIMITED ANNUAL REPORT 2018For personal use only 1. Summary of significant accounting policies continued
ii. Significant management judgement in applying accounting
policies
When preparing the financial statements, management
undertake a number of judgements, estimates and
assumptions about the recognition and measurement
of assets, liabilities, income and expenses. The areas
involving significant estimates and assumptions are
listed below:
• Exploration and Evaluation Expenditure – Note 8
Judgement is required to ensure that the carrying
value of Exploration and Evaluation assets does not
exceed the recoverable amount. Factors considered
in this judgement are:
a) the period for which the entity has the right to
explore in the specific area has expired or will
expire in the near future;
b) substantive expenditure on further exploration for
and evaluation of mineral resources in the
specific area is neither budgeted nor planned;
c) exploration for and evaluation of mineral
resources in the specific area have not led to the
discovery of commercially viable quantities of
mineral resources and the entity has decided to
discontinue such activities;
d) sufficient data exists to indicate that, although a
development in the specific area is likely to
proceed, the carrying amount of the exploration
and evaluation asset is unlikely to be recovered
in full from successful development or by sale.
Management has made a judgement that, given
these factors, the balance of Exploration and
Evaluation assets is not impaired.
• Share based payments – Note 11
The valuation for accounting purposes of Share
Based Payments relies on a number of factors that
cannot be accurately measured. These include:
a) the volatility of the LCK share value;
b) the probability that vesting conditions/milestones
will be met;
c) the probability that the employee will remain
employed with the company until the expiry date
of the options;
d) the probability that the employee will exercise
their options.
Final judgement about vesting of the options is
retained by the Board. Management has assessed
each of these factors and made judgements on
what factors are used for the calculation.
40
Reliable energy for South AustraliaNotes to the Financial Statements for the year ending June 30, 2018 For personal use only
2. Other revenue and expenses
Accounting policy – revenue and expenses recognition
Other revenue is recognised on an accruals basis and is recognised at the time the right to receive payment is
established.
Other expenses represent costs incurred for the administration of the business. Costs relating to the project have
been capitalised to Exploration and Evaluation expenditure (as shown in Note 8).
a) Other revenue
Grants
Fair value to P&L (financial assets)
Disposal of fixed assets
Total other revenue
b) Other expenses
Accounting and audit
Communications costs
Corporate advisory
Software & other
Consulting and legal expense
Insurance
Investor relations
Listing & registry fees
Occupancy expense
Printing and office supplies
Travel and accommodation
Sundry
Total other expenses
2018
$
55,000
-
-
55,000
164,948
52,292
574,330
47,619
428,627
110,704
259,169
118,708
358,753
52,840
298,503
244,604
2017
$
20,000
10,875
22,856
53,731
142,343
54,905
371,302
87,506
424,631
71,553
331,176
61,140
449,661
27,828
346,772
212,877
2,711,097
2,581,694
41
Reliable energy for South AustraliaLEIGH CREEK ENERGY LIMITED ANNUAL REPORT 2018 For personal use only
3. Finance income and finance costs
Accounting policy – Finance income and finance costs
Finance income includes interest revenue which is recognised on an accruals basis taking into account
the interest rates applicable. It is recognised at the time the right to receive payment is established.
Finance costs include interest paid and amortised borrowing costs from financing arrangements. Costs
incurred in relation to the arrangement are amortised using the effective interest method, over the life of
the loan.
a) Finance income
Interest earned
Total finance income
b) Finance costs
Interest paid
Amortised borrowing costs
Total finance costs
2018
$
2017
$
180,645
180,645
-
310,716
310,716
54,011
54,011
5,288
72,817
78,105
42
Reliable energy for South AustraliaNotes to the Financial Statements for the year ending June 30, 2018 For personal use only
4. Income tax
Accounting policy – income taxes
Deferred taxes are not recognised in the accounts. As the Group has significant carried forward tax losses, it
does not have sufficient taxable temporary differences which will result in taxable amounts against which the
unused tax losses can be utilised.
The amount of benefits 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 and its wholly owned Australian subsidiaries are part of a tax-consolidated
group under Australian taxation law.
a) Numerical reconciliation of income tax expense to prima facie tax payable
Loss before income tax
(6,018,850)
(5,758,760)
2018
$
2017
$
Prima facie tax (benefit) on loss before income tax at 27.5% (2017: 27.5%)
(1,655,184)
(1,583,659)
Permanent differences:
Entertainment non deductible
Share based payments
Fair value adjustment for investments
Movement in unrecognised tax assets and liabilities
Tax loss not recognisable
Under/(Over) provided in prior year
Aggregate income tax expense
b) Tax losses
Unused tax losses for which no deferred tax asset has been recognised
Revenue losses
Capital losses
16,687
95,309
-
666,949
804,335
71,904
-
10,986
16,736
(2,985)
(386,139)
1,426,033
519,028
-
16,775,866
15,819,969
50,729
50,729
The Group considers that in the future it will be generating taxable income to utilise carried forward tax
losses, however, it does not meet the recognition criteria. Additionally, the carried forward tax losses can
only be utilised in the future when taxable income is being generated, if the continuity of ownership test is
passed, or failing that, the same business test is passed.
43
Reliable energy for South AustraliaLEIGH CREEK ENERGY LIMITED ANNUAL REPORT 2018For personal use only
5. Cash assets
Accounting policy – Cash and cash equivalents
Cash and cash equivalents include cash on hand, deposits held at call and term deposits with banks.
i) Cash and cash equivalents
Bank balances
Term deposits12
Cash and cash equivalents in the statement of cashflows
Notes:
1 Includes $480,138 of restricted cash to support a bond and credit card facility.
2 Term deposits comprise cash balances with an original maturity of less than three months.
2018
$
2017
$
1,087,392
307,787
8,236,256
8,450,000
9,323,648
8,757,787
6. Trade and other receivables
Accounting policy – Trade and other receivables
Trade receivables are recognised initially at fair value. At balance date, no receivables were considered to be
outstanding or impaired.
Trade debtors
GST recoverable
Prepayments
R&D tax incentive receivable
Other debtors
Total Trade and other receivables
2018
$
9,433
250,165
51,697
2017
$
26,400
127,032
23,142
9,010,220
2,135,457
37,656
46,721
9,359,171
2,358,752
44
Reliable energy for South AustraliaNotes to the Financial Statements for the year ending June 30, 2018 For personal use only
7. Property, plant and equipment
Accounting policy – Property, plant and equipment
Each class of property, plant and equipment is carried at cost, where applicable, less any accumulated
depreciation and impairment losses.
i) Plant and equipment
Plant and equipment are shown at historical cost less accumulated depreciation and accumulated impairment.
Cost includes expenditure that is directly attributable to the acquisition of the assets.
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 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.
ii) Depreciation
Depreciation is calculated using the straight-line method to allocate their cost over their estimated useful lives,
as follows:
• Plant and equipment
• Office equipment
• Motor vehicles
• Leasehold improvement
The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at each reporting date. Gains
and losses on disposal of property, plant and equipment are determined as the difference between the disposal
proceeds and the carrying amount of the assets (including impairment provision) and are recognised in the profit or
loss with Other Income or Other Expenses.
10-50%
5-33%
15%
45%
Cost
Balance at 1 July 2017
Additions
Transfers
Disposals
Balance at 30 June 2018
Accumulated depreciation & impairment
Balance at 1 July 2017
Impairment balance
Depreciation
Transfers
Impairment movement
Disposals
Balance at 30 June 2018
Carrying amounts
At 1 July 2017
At 30 June 2018
2018
$
2017
$
506,172
117,894
-
-
624,066
515,695
126,956
115
(136,594)
506,172
285,452
303,470
-
56,016
-
-
99,285
39,873
115
(55,968)
(60)
(101,323)
341,408
285,452
220,720
282,658
-
220,720
45
Reliable energy for South AustraliaLEIGH CREEK ENERGY LIMITED ANNUAL REPORT 2018For personal use only
8. Exploration and evaluation expenditure
Accounting policy – 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.
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.
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.
Balance at opening
Licence fees
Costs capitalised for Feasibility Studies
Costs capitalised for LCEP
Less R&D tax concession rebates
Total exploration and evaluation expenditure
2018
$
2017
$
5,985,725
2,450,480
8,748
916,489
7,198
503,987
18,537,324
5,950,201
(9,048,135)
(2,926,141)
16,400,151
5,985,725
During the year the Company applied for R&D Tax Incentives through AusIndustry in relation to eligible
research expenditure incurred during 2017/18 for the Leigh Creek Energy Project. The tax incentive received
during the year is a refundable tax credit and has been credited to Exploration and Evaluation capitalised
expenditure ($2,173,372). Additionally, the Company has booked a receivable ($9,010,220) in relation to
eligible R&D expenditure for the period up to and including 30 June 2018 which has been reviewed
externally to ensure it is in accordance with the relevant criteria.
9. Trade and other payables
Trade and other payables consist of the following:
Trade payables
Other payables
Accruals
Total Trade and other payables
2018
$
2017
$
1,410,581
1,036,393
53,594
4,293,088
45,942
574,633
5,757,263
1,656,968
46
Reliable energy for South AustraliaNotes to the Financial Statements for the year ending June 30, 2018 For personal use only
10. Borrowings
Accounting policy – Borrowings
Borrowings are recognised initially at fair value less attributable transaction and finance costs.
Subsequent to initial recognition, Borrowings and loans are stated at amortised cost, with any difference
between cost and redemption value being recognised in the profit or loss over the period of the loan on
an effective interest basis. Loans with a determinable payment due less than twelve months from reporting
date are classified as current liabilities.
Transaction and finance costs include ancillary costs incurred in connection with the arrangement of
loans, interest payable and facility line fees payable on the loan.
Current
R&D working capital facility
Total loans
Loans
R&D working capital facility – available
R&D working capital facility – undrawn
Loans - drawn
Less: unamortised transaction costs
Carrying amount at 30 June 2018
2018
$
2017
$
3,830,000
1,540,049
3,830,000
1,540,049
6,500,000
2,000,000
(2,670,000)
(390,000)
3,830,000
1,610,000
-
(69,951)
3,830,000
1,540,049
The Company has a working capital facility with the Commonwealth Bank of Australia (CBA) to bring
forward access to refundable R&D tax concessions. This has provided LCK with the flexibility to bring
forward its tax offsets by providing a draw down on eligible expenditure and for CBA to be repaid from the
company’s taxation return rebate. In June 2018 LCK extended the Facility to December 2019 and the
facility limit was increased to $10.5m. Following receipt of the 2017/18 ATO rebate and clean down of the
Facility the limit will decrease to $3.6m to match anticipated 2018/19 tax rebates. A total of $3,830,000 was
drawn under the extended facility as at 30 June 2018. The receivable due from the R&D rebate is
$9,010,220 for the year.
47
Reliable energy for South AustraliaLEIGH CREEK ENERGY LIMITED ANNUAL REPORT 2018For personal use only
11. Employee remuneration
Employee benefits expense
Wages, salaries (inc. on-costs)
Superannuation
Share based payments
Total employee benefit expense
2018
$
2017
$
2,651,217
2,890,950
194,937
346,577
219,642
60,860
3,192,731
3,171,452
Under the Company’s Accounting for Exploration policy, labour costs relating to the LCEP are capitalised.
The total staff cost was $5,759,766 (2017 : $5,208,931).
Share based employee remuneration
Accounting policy – Share based payment plans
Share based compensation benefits are provided to employees of the Company. The fair value of the
options granted under the plan is recognised as an employee benefit expense with a corresponding
increase in equity (Share Option Reserve). The fair value is measured at grant date and recognised over
the period during which the employees become entitled to the underlying options.
The fair value at issue date is calculated using the Trinomial option pricing model that takes into account
the share price at issue date, the exercise price, the term until expiry, estimate of implied volatility, the
vesting and performance criteria and the non-tradeable nature of the option. At each balance sheet date,
the Company revises its estimate of the number of options that are expected to become exercisable.
(i) Number of options issued to employees during the year
Outstanding at beginning of the year
Forfeited
Issued 1
Exercised
Notes:
2018
2017
16,445,000
14,250,000
(728,750)
(2,000,000)
636,000
4,195,000
-
-
16,352,250
16,445,000
1 Excludes 4,000,000 director options and 1,000,000 company secretary options (related party) granted 18th April 2018, with issue
subject to shareholder approval on 22nd August 2018, expensed during the period in accordance with accounting standard.
48
Reliable energy for South AustraliaNotes to the Financial Statements for the year ending June 30, 2018 For personal use only
11. Employee Remuneration continued
(ii) Valuation assumptions
Grant date
Number issued
Share price at grant date
Volatility (average)5
Fair value at issue date
Exercise price
Exercisable from
Exercisable to
Plan 1
Plan 2
Plan 3
15 October 2015
1 December 2015
1 December 2015
2,000,000
2,000,0000
10,250,000
$0.17
70%
$0.08
$0.2121, $0.252
$0.23
70%
$0.02
$1.50
$0.23
70%
$0.04
$0.30
22 October 2015
31 July 20163
31 July 20163
14 October 20204
31 July 2020
30 November 2020
Notes:
1 Exercise price for Tranche 1 was the greater of $0.20 and 10% premium to the 5 day VWAP up to 26 May 2015.
2 Exercise price for Tranche 2 was the greater of $0.25 and 20% premium to the 5 day VWAP up to 26 May 2015.
3 Options vest at 25% per year on 31 July 2016, 31 July 2017, 31 July 2018 and 31 July 2019 if vesting
conditions (milestones) are achieved.
4 Tranche 1 expiry date is 14 October 2019, and Tranche 2 expiry date is 14 October 2020.
5 A volatility curve was used for calculations.
Grant date
Number issued
Share price at grant date
Volatility (average)3
Fair value at issue date
Exercise price
Exercisable from
Exercisable to
Plan 4
Plan 5
Plan 6
11 July 2016
4 October 2016
10 July 2017
195,000
4,000,000
636,000
$0.19
70%
$0.04
$0.13
70%
$0.03
$0.49, $0.30
$0.35, $0.45
$0.11
70%
$0.02
$0.30
11 July 20161
10 October 2016
31 July 20182
30 November 2020
10 October 2021
30 November 2020
Notes:
1 Options vest at 25% per year on 31 July 2016, 31 July 2017, 31 July 2018 and 31 July 2019 if vesting conditions (milestones) are
achieved.
2 Options vest at 33% per year on 31 July 2018, 31 July 2019 and 31 July 2020 if vesting conditions are achieved.
3 A volatility curve was used for calculations.
49
Reliable energy for South AustraliaLEIGH CREEK ENERGY LIMITED ANNUAL REPORT 2018For personal use only
11. Employee Remuneration continued
Employee benefits
Accounting policy – Employee benefits
Provision is made for the Group’s liability for employee benefits arising from services rendered by
employees to reporting date. These benefits include wages, salaries and annual leave. Where these
benefits are expected to be settled within 12 months of the reporting date, they are measured at the
amounts expected to be paid when the liabilities are settled. The provision has been recognised at the
undiscounted amount expected to be paid.
In relation to employee benefits arising for employees directly involved in the exploration project, these
indirect costs have been capitalised to the project.
Liability for annual leave
Provision for bonus
Total employee benefit liability
12. Issued Capital
Accounting policy – Issued capital
2018
$
288,019
250,565
538,584
2017
$
198,569
99,930
298,499
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares
is shown in equity as a deduction from the proceeds.
The company has granted unlisted options to employees in respect of their employment contracts. The
fair value of the options granted is recognised as an employee benefits expense with a corresponding
increase in equity (Share Option Reserve). The fair value is measured at grant date and recognised over
the period during which the employees become unconditionally entitled to exercise the option. Fair value
is determined by the use of a Trinomial option pricing model.
Ordinary shares
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. All issued shares are
fully paid. All unissued shares are ordinary shares of the Company.
452,780,603 (2017 : 332,368,051)
Ordinary shares
Share issue costs
Total issued capital
2018
$
2017
$
61,423,690
43,009,130
(3,096,636)
(1,909,096)
58,327,054
41,100,034
Additional shares were issued during 2018 in relation to capital raising activities. In March 2017, Leigh
Creek Energy signed a subscription agreement with China New Energy Group Limited (CNE) for the issue
of 136.3 million Leigh Creek Energy Limited Ordinary Shares in three tranches at an average issue price of
$0.147 per share. On 27 October 2017, China New Energy Group Limited (CNE) completed the final
tranche of their $20 million investment in the Company increasing their interest to 32.78% of capital on
issue. CNE are a related party. Additionally, the Company has placed 36.9 million shares with
sophisticated and professional investors.
50
Reliable energy for South AustraliaNotes to the Financial Statements for the year ending June 30, 2018 For personal use only
12.
Issued Capital continued
Detailed table of capital issued during the year
Type of share issue
Date of issue
No of ordinary shares
on issue
Issue price
$
Opening balance 1 July 2017
Share issue
Share issue
Share issue
Share issue costs
Issued capital
16 August 2017
27 October 2017
25 June 2018
332,368,051
17,000,000
66,544,905
36,867,647
452,780,603
$0.15
$0.15
$0.16
Share capital
$
41,100,034
2,550,000
9,981,736
5,882,824
(1,187,540)
58,327,054
Unlisted options
at the end of the financial year, unissued shares of the Group under option are:
Expiry date
31 October 2018
31 October 2018
31 October 2018
31 October 2018
11 May 2019
14 October 2019
14 October 2020
31 July 2020
30 November 2020
30 November 2020
8 May 2021
10 October 2021
10 October 2021
30 November 2020
Total
Exercise price
Number of shares
$0.20
$0.22
$0.24
$0.26
$0.30
$0.212
$0.25
$1.50
$0.30
$0.49
$0.30
$0.35
$0.45
$0.30
1,500,000
1,500,000
1,500,000
1,500,000
1,500,000
1,000,000
1,000,000
1,250,000
8,655,000
141,250
800,000
2,000,000
2,000,000
306,000
24,652,250
Options granted under the Employee Share Option Plan will typically expire on the earlier of the expiry date or
termination of the employee’s employment (unless the employee is a retiring director). For employees that are
made redundant, their future unvested tranches are still able to vest (if conditions are met).
Listed options
A number of listed options (17,687,463 at an exercise price of $0.50) were issued as part of the prospectus for
the capital raising finalised in May 2016. These options lapsed unexercised on the 6th June 2018 and as such
there are nil listed options over shares of the Group at the end of the financial year.
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.
51
Reliable energy for South AustraliaLEIGH CREEK ENERGY LIMITED ANNUAL REPORT 2018For personal use only
13. Reserves
Accounting policy - Reserves
The share option reserve is used to recognise the fair value of options granted to employees and
consultants but not exercised. Upon exercise of the options, the proceeds are allocated to share capital.
Share option reserve
Total reserves
A breakdown of the share option reserve is as follows1:
Directors
Employees
Former employees
Consultants
Total
Notes:
2018
$
2017
$
1,802,721
1,456,144
1,802,721
1,456,144
No of Options
6,750,000
5,886,000
3,716,250
8,300,000
2018
$
247,314
507,644
358,845
688,918
24,652,250
1,802,721
1 Director and employee components include expense related to 4,000,000 director options and 1,000,000 company secretary
options (related party) granted 18th April 2018, with issue subject to shareholder approval on 22nd August 2018, expensed during
the period in accordance with accounting standard.
14. Commitments for expenditure
Accounting policy - operating 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. The Company does not
have any leases over property, plant or equipment where lease arrangements would be classed as
finance leases.
Operating lease commitment
Not longer than 1 year
Longer than 1 year and not longer than 5 years
2018
$
2017
$
249,261
12,529
296,687
31,043
The Group has no contingent liabilities at the year end.
Accounting policy – capital commitments
Capital commitments relates to expenditure commitments for the Leigh Creek Energy Project
(LCEP) outstanding at balance date.
Leigh Creek Energy Project
2018
$
2017
$
1,037,042
1,344,730
52
Reliable energy for South AustraliaNotes to the Financial Statements for the year ending June 30, 2018 For personal use only
14 Commitments for expenditure continued
The company held bank guarantees with the Minister for Mineral Resources and Energy of $184,000 dated
3 January 2018, and $170,000 dated 7 May 2018, the Department of State Development of $50,000 dated
13 July 2018, and Knight Frank of $69,803 dated 7 September 2017. Under the terms of tenement
registration and renewal, tenements have commitments to work requirements. The commitment to work
requirements at Leigh Creek is included above.
There are no other commitments at balance date for expenditure by the Group.
15. Financial assets and liabilities
Accounting policy – financial assets & liabilities
Recognition
Financial assets and financial liabilities are recognised when the Group becomes a party to the
contractual provisions of the financial instruments, 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.
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.
Categories of financial assets and liabilities
The carrying amount of financial assets and liabilities in each category are as follows:
Financial assets
30 June 2018
Trade and other receivables
Cash and cash equivalents
Financial liabilities
30 June 2018
Current borrowings
Trade and other payables
Notes
Assets at fair value
through profit or loss
Financial assets at
amortised cost
Total
5
-
-
-
9,359,171
9,323,648
9,359,171
9,323,648
18,682,819
18,682,819
Notes
Designated at fair value
through profit or loss
Other liabilities
Total
10
9
-
-
-
3,830,000
5,757,263
3,830,000
5,757,263
9,587,263
9,587,263
53
Reliable energy for South AustraliaLEIGH CREEK ENERGY LIMITED ANNUAL REPORT 2018For personal use only
15. Financial assets and liabilities continued
Categories of financial assets and liabilities continued
Financial assets
30 June 2017
Trade and other receivables
Cash and cash equivalents
Financial liabilities
30 June 2017
Current borrowings
Trade and other payables
Notes
Assets at fair value
through profit or loss
Financial assets at
amortised cost
Total
5
-
-
-
2,358,752
8,757,787
2,358,752
8,757,787
11,116,539
11,116,539
Notes
Designated at fair value
through profit or loss
Other liabilities
Total
10
9
-
-
-
1,610,000
1,538,405
1,610,000
1,538,405
3,148,405
3,148,405
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.
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.
i. Treasury risk management
The risk management of treasury functions is managed by the Audit and Risk Committee.
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 operates mainly in Australia and as such is
not subject to foreign exchange risk.
Interest rate risk
The 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 on classes of financial assets and liabilities, is
summarised in the table above.
Sensitivity: At June 30, 2018, if interest rates on cash and term deposits 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 $19,926 more/less as a result of lower/higher interest income.
At June 30, 2018, if interest rates on borrowings 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 $944 more/
less as a result of lower/higher interest expense.
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. 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.
54
Reliable energy for South AustraliaNotes to the Financial Statements for the year ending June 30, 2018 For personal use only
15. Financial assets and liabilities continued
ii. Finance risks continued
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.
16. Notes to the Statement of Cash Flows
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:
Bank balances and short term deposits
2018
$
2017
$
9,323,648
8,757,787
The weighted average effective interest rate on bank deposits is 1.36% (2017: 1.88%). All deposits are for less than
12 months.
Reconciliation of cash flow from operations with loss after tax
Loss after income tax
Cash flows excluded from loss attributable to operating activities:
Non-cash flows in operating loss
Depreciation expense
Share based payments
Impairment change
Fair value assets change
Change in assets and liabilities
Decrease/(Increase) in receivables / prepayments
Increase/(Decrease) in payables
Increase/(Decrease) in provisions
Net Cash (used in) / provided by operating activities
2018
$
2017
$
(6,018,850)
(5,758,760)
39,951
346,577
-
-
35,251
60,860
(55,968)
(10,875)
(1,905,283)
(13,407)
4,162,733
240,084
994,260
173,980
(3,134,788)
(4,574,659)
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Reliable energy for South AustraliaLEIGH CREEK ENERGY LIMITED ANNUAL REPORT 2018For personal use only
17. Parent entity disclosures
Investment in controlled entities
Entity
Country of incorporation
Class of share
Interest held
Bonanza Gold Pty Ltd
Australia
Leigh Creek Operations Pty Ltd
Australia
Ordinary
Ordinary
Parent entity information
Parent Entity
Asset
Current assets
Non-current assets
Total assets
Liabilities
Current liabilities
Non-current liabilities
Total liabilities
Equity
Issued capital
Share option reserve
Accumulated losses
Shareholder equity
Financial performance
Profit (loss) for the year
Other comprehensive income
Total comprehensive income
2018
100%
100%
2018
$
2017
100%
100%
2017
$
18,086,987
10,953,732
11,560,147
4,407,387
29,647,134
15,361,119
4,996,516
2,265,234
-
-
4,996,516
2,265,234
56,717,813
65,640,664
1,802,721
1,618,294
(33,869,916)
(54,163,073)
24,650,618
13,095,885
(6,018,063)
(5,758,760)
-
-
(6,018,063)
(5,758,760)
The parent entity has not entered into a deed of cross guarantee nor are there any contingent liabilities
at the year end.
56
Reliable energy for South AustraliaNotes to the Financial Statements for the year ending June 30, 2018 For personal use only
18. Related party transactions
Transactions with key management personnel compensation
Key management of the Group are the executive members of the Group’s Board of Directors and
members of the management team. Key management personnel remuneration includes the following
expenses:
Total short term employee benefits
Total post-employment benefits
Share based payments
Total Remuneration
2018
$
2017
$
1,477,356
1,357,635
121,996
267,525
445,137
(22,816)
1,866,877
1,779,956
The amounts disclosed in the table are the amounts recognised as an expense during the reporting year.
Other transactions with key management personnel
Transactions between related parties are on normal commercial terms and conditions no more favourable
than those to other parties, unless otherwise stated:
i)
ii)
Piper Alderman lawyers were paid $82,909 (2017: $78,015) for legal services rendered to the Group.
Greg English is a partner at Piper Alderman lawyers;
ARK Energy Ltd had a service agreement in place with the Company for facilities and accounting
services. Fees rendered to the Company were $14,700 (2017: $32,586). Mr Philip Staveley resigned
on 5 December from being a director of ARK Energy Ltd;
iii) Investment Company Services Pty Ltd were paid $60,116 (2017: $Nil) for providing investor relations
services to the Group. The party is related to Mr Peters, Executive Chairman. A market capitalisation
performance fee is payable under the contract to a maximum value of $500,000, less any fees earned,
payable in shares. This fee is only payable if the average weighted share price of $0.30 for 45 days is
exceeded. The contract expires on 31 December 2018;
iv) A related party incurred travel reimbursements totalling $1,553. The related party, Allied Resources
Partners Pty Ltd, is related to Mr Peters, Executive Chairman.
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Reliable energy for South AustraliaLEIGH CREEK ENERGY LIMITED ANNUAL REPORT 2018For personal use only
19. Auditor’s remuneration
During the year the following fees were paid or payable for services provided by the Auditor of the Group:
Auditing and review services
Other services
2018
$
43, 856
55,750
2017
$
44,937
-
During the year, Grant Thornton Audit Pty Ltd, the Company’s auditors, did undertake a review of the
Employee Share Option Plan in addition to their statutory audit duties. Grant Thornton Corporate
Finance Pty Ltd (Sydney) prepared an Independent Expert Report in July 2017.
20. Earnings per share
Accounting policy – Earnings per share
i) Basic earnings per share
Basic earnings per share is calculated by dividing the profit (loss) attributable to equity holders
excluding any costs of servicing equity other than ordinary shares, by the weighted average number
of ordinary shares outstanding during the year.
ii) Diluted earnings per share
Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to
take into account the weighted average number of shares assuming conversion of all dilutive potential
ordinary shares.
The calculation of basic loss per share at 30 June 2018 was based on the loss attributable to ordinary
equity holders of $6,018,850 (2017: $5,758,760) and a weighted average number of ordinary shares
outstanding during the 12 months of 392,533,489 (2017: 279,894,514).
The calculation of diluted loss per share at 30 June 2018 is the same as basic diluted loss per share.
In accordance with AASB 133 Earning per share, as potential ordinary shares may result in a situation
where their conversion results in a decrease in the loss per share, no dilutive effect has been taken
into account. Potential ordinary shares relating to listed and unlisted options at 30 June 2018 totalled
24,652,250 (2017: 42,432,463).
Loss used to calculate basic EPS
Basic earnings per share – cents per share
Diluted earnings per share – cents per share
Weighted average number of shares used as denominator
Weighted average number of ordinary shares outstanding during the year
used in calculating basic EPS
2018
$
2017
$
(6,018,850)
(5,758,760)
(0.02)
(0.02)
(0.02)
(0.02)
392,533,489
279,894,514
Shares deemed to be issued for no consideration in respect of share based payments
24,652,500
24,745,000
Listed options issued for no consideration
-
17,687,463
Weighted average number of shares used in diluted earnings per share
417,185,739
322,326,977
58
Reliable energy for South AustraliaNotes to the Financial Statements for the year ending June 30, 2018 For personal use only
21. Matters subsequent to the end of the year
A total of 9,510,000 new ordinary shares were issued to participating shareholders at A$0.16 per
Share under the SPP on 20 July 2018. The Company reserved the right to place the unsubscribed
balance of the SPP.
1. On 30 July 2018 a total of 9,240,000 new ordinary shares were issued to institutional and
sophisticated investors who are primarily existing shareholders of the Company at A$0.16 per
Share, to place the shortfall from the SPP.
2. Employee Share Options were issued on 18 July 2018 – total of 5,790,000 options issued at an
exercise price of $0.251, expiring on 16 July 2022.
3. A General Meeting was held on 22 August 2018 to approve a placement to CNE of 27,126,447
shares at 16 cents per share to raise $4.34m. Upon approval and placement, CNE return to its
percentage shareholding pre-capital raising of 32.78%. In addition, shareholders were asked to
approve the issue of 4,000,000 unlisted options to directors and 1,000,000 to the Company
Secretary at an exercise price of $0.35 expiring on 17 April 2023, and 5,000,000 unlisted options to
executive directors at an exercise price of $0.246 expiring on 3 July 2022.
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
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Reliable energy for South AustraliaLEIGH CREEK ENERGY LIMITED ANNUAL REPORT 2018For personal use only
Grant Thornton Audit Pty Ltd
Grant Thornton House
Level 3
170 Frome Street
Adelaide, SA
5000
T +61 8 8372 6666
F +61 8 8372 6677
Independent Auditor’s Report
To the Members of Leigh Creek Energy Limited
Report on the audit of the financial report
Opinion
We have audited the financial report of Leigh Creek Energy Limited (the Company) and its subsidiaries (the Group), which
comprises the consolidated statement of financial position as at 30 June 2018, 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, and notes to the consolidated financial statements, including a summary of significant accounting
policies, and the Directors’ declaration.
In our opinion, the accompanying financial report of the Group is in accordance with the Corporations Act 2001, including:
a giving a true and fair view of the Group’s financial position as at 30 June 2018 and of its performance for the year
ended on that date; and
b complying with Australian Accounting Standards and the Corporations Regulations 2001.
Basis for opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those standards are
further described in the Auditor’s Responsibilities for the Audit of the Financial Report section of our report. We are
independent of the Group in accordance with the auditor independence requirements of the Corporations Act 2001 and
the ethical requirements of the Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for
Professional Accountants (the Code) that are relevant to our audit of the financial report in Australia. We have also fulfilled
our other ethical responsibilities in accordance with the Code.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Grant Thornton Audit Pty Ltd ACN 130 913 594
a subsidiary or related entity of Grant Thornton Australia Ltd ABN 41 127 556 389
www.grantthornton.com.au
‘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.
60
Reliable energy for South AustraliaIndependent Audit ReportFor personal use only
Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial
report of the current period. These matters were addressed in the context of our audit of the financial report as a whole, and in
forming our opinion thereon, and we do not provide a separate opinion on these matters.
Key audit matter
How our audit addressed the key audit matter
Exploration and evaluation assets – Note 8
At 30 June 2018, the carrying value of exploration and
evaluation assets was $16,400,151.
In accordance with AASB 6 Exploration for and Evaluation of
Mineral Resources, the Group is required to assess at each
reporting date if there are any triggers for impairment which
may suggest the carrying value is in excess of the recoverable
value.
The process undertaken by management to assess whether
there are any impairment triggers in each area of interest
involves an element of management judgement.
This area is a key audit matter due to the significant
judgement involved in determining the existence of
impairment triggers.
Our procedures included, amongst others:
obtaining the management reconciliation of capitalised
exploration and evaluation expenditure and agreeing to
the general ledger;
reviewing management’s area of interest considerations
against AASB 6;
conducting a detailed review of management’s
assessment of trigger events prepared in accordance with
AASB 6 including;
o
tracing projects to exploration licenses and third
party confirmations to determine whether a right of
tenure existed;
enquiry of management regarding their intentions to
carry out exploration and evaluation activity in the
relevant exploration area, including review of
management’s budgeted expenditure;
understanding whether any data exists to suggest
that the carrying value of these exploration and
evaluation assets are unlikely to be recovered
through development or sale;
o
o
evaluating the competence, capabilities and objectivity of
management’s experts in the evaluation of potential
impairment triggers; and
assessing the appropriateness of the related financial
statement disclosures.
Information other than the financial report and auditor’s report thereon
The Directors are responsible for the other information. The other information comprises the information included in the
Group’s annual report for the year ended 30 June 2018, but does not include the financial report and our auditor’s report
thereon.
Our opinion on the financial report does not cover the other information and we do not express any form of assurance
conclusion thereon.
In connection with our audit of the financial report, our responsibility is to read the other information and, in doing so, consider
whether the other information is materially inconsistent with the financial report or our knowledge obtained in the audit or
otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are
required to report that fact. We have nothing to report in this regard.
Responsibilities of the Directors’ for the financial report
The Directors of the Company are responsible for the preparation of the financial report that gives a true and fair view in
accordance with Australian Accounting Standards and the Corporations Act 2001 and for such internal control as the Directors
determine is necessary to enable the preparation of the financial report that gives a true and fair view and is free from material
misstatement, whether due to fraud or error.
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Reliable energy for South AustraliaLEIGH CREEK ENERGY LIMITED ANNUAL REPORT 2018For personal use only
In preparing the financial report, the Directors are responsible for assessing the Group’s ability to continue as a going concern,
disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the
Directors either intend to liquidate the Group or to cease operations, or have no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the financial report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from material
misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance
is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Australian Auditing
Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are
considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions
of users taken on the basis of this financial report.
A further description of our responsibilities for the audit of the financial report is located at the Auditing and Assurance
Standards Board website at: http://www.auasb.gov.au/auditors_responsibilities/ar1.pdf. This description forms part of our
auditor’s report.
Report on the remuneration report
Opinion on the remuneration report
We have audited the Remuneration Report included in the Directors’ report for the year ended 30 June 2018.
In our opinion, the Remuneration Report of Leigh Creek Energy Limited, for the year ended 30 June 2018 complies with
section 300A of the Corporations Act 2001.
Responsibilities
The Directors of the Company are responsible for the preparation and presentation of the Remuneration Report in accordance
with section 300A of the Corporations Act 2001. Our responsibility is to express an opinion on the Remuneration Report,
based on our audit conducted in accordance with Australian Auditing Standards.
GRANT THORNTON AUDIT PTY LTD
Chartered Accountants
I S Kemp
Partner – Audit & Assurance
Adelaide, 22 August 2018
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Reliable energy for South AustraliaIndependent Audit ReportFor personal use only
Substantial shareholders at August 7, 2018
Name
Fully paid shares Ordinary shares %
Options
Otions %
China New Energy Group Limited
136,333,334
28.91
-
-
Distribution of shareholdings at 7 August 2018
Number of security holders by size of holding:
Range
1 – 1,000
1,001 – 5,000
5,001 – 10,000
10,001 – 100,000
100,001 and over
Total
Total holders
shares
444
698
449
Number of
shares
222,928
1,984,107
3,590,744
1,089
40,829,983
443
424,902,841
3,123
471,530,603
Total holders
listed options
Number of
listed options
-
-
-
-
-
-
-
-
-
-
-
-
The issued capital of the Company is 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)
and listed options. 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.
At 7 August 2018 a marketable parcel constituted 3,030 shares. The number of shareholders holding
less than a marketable parcel was 881 (1,105,161 shares).
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Reliable energy for South AustraliaLEIGH CREEK ENERGY LIMITED ANNUAL REPORT 2018Shareholder InformationFor personal use only
Twenty largest shareholders at August 7, 2018
Name
China New Energy Group Limited
Citic Australia Pty Ltd
Mr George Andrew Raftopulos + Mrs Elizabeth Athena Raftopulos
Crown Ascent Development Limited
HSBC Custody Nominees (Australia) Limited - A/C2
Mr David Shearwood + Mr Harry Shearwood
Rubi Holdings Pty Ltd
One Design & Skiff Sails Pty Ltd
Mr Bruce Warrington Holman
River Property Investments Pty Ltd
Littlejohn Embrey Engineering Pty Ltd
Mr Michael Duligal
J P Morgan Nominees Australia Limited
Martin & Alison Cromme Pty Ltd
Ms Nichola Marguerite Clutterbuck + Ms Nell Marguerite Wharton
Mr Bruce Warrington Holman + Mrs Amanda Louise Holman
Bart Properties Pty Ltd
Mrs Amanda Holman
Slade Technologies Pty Ltd
Mr Nicholas James Redpath
Totals top 20
Total remaining holders balance
Unissued equity securities
Unlisted options
Securities exchange
The Company is listed on the Australian Securities Exchange.
Fully paid
ordinary shares
% of issued
capital
136,333,334
28.91
17,242,855
12,650,090
12,470,921
9,129,390
8,702,427
7,500,000
5,260,887
4,536,539
3,940,000
3,826,598
3,671,021
3,559,644
3,554,450
2,718,029
2,715,497
2,666,666
2,558,673
2,530,750
2,528,999
248,096,770
223,433,833
3.66
2.68
2.64
1.94
1.85
1.59
1.12
0.96
0.84
0.81
0.78
0.75
0.75
0.58
0.58
0.57
0.54
0.54
0.54
52.62
47.38
Number
23,723,500
64
Reliable energy for South AustraliaShareholder informationFor personal use only
Name
Fully paid
% of issue
ordinary shares
capital
65
Reliable energy for South AustraliaLEIGH CREEK ENERGY LIMITED ANNUAL REPORT 2018NotesFor personal use only
Name
Fully paid
% of issue
ordinary shares
capital
66
Reliable energy for South AustraliaNotesFor personal use only
Directors
Daniel J Peters
Executive Chairman
Phillip Staveley
Managing Director
Gregory D English
Non-Executive Director
Murray K Chatfield
Non-Executive Director
Zhe Wang
Non-Executive Director
Zheng Xiaojiang
Non-Executive Director
Company Secretary
Jordan Mehrtens
Registered & Principal Business Office
Level 11, 19 Grenfell Street
Adelaide, South Australia, 5000
Bankers
Commonwealth Bank of Australia
96 King William Street
Adelaide, South Australia, 5000
Principal Lawyer
Piper Alderman
Level 16, 70 Franklin Street
Adelaide, South Australia, 5000
Auditors
Grant Thornton Audit Pty Ltd
Level 3, 170 Frome Street
Adelaide, South Australia, 5000
Share Registrar
Computershare Registry Services Pty Ltd
Level 5, 115 Grenfell Street
Adelaide, South Australia, 5000
Investor enquiries: 1300 556 161
International: +61 3 9415 4000
Leigh Creek Energy Limited
ABN 31 107 531 822
PO Box 12
Rundle Mall SA 5000
Phone +61 8 8132 9100
contactus@lcke.com.au
www.lcke.com.au
67
Reliable energy for South AustraliaLEIGH CREEK ENERGY LIMITED ANNUAL REPORT 2018Corporate DirectoryFor personal use only
LEIGH CREEK ENERGYLimited
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Reliable energy for South AustraliaFor personal use only