Magnis Energy Technologies Annual Report 2020

FY2020 Annual Report · Magnis Energy Technologies
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M A G N IS  E N E R G Y  T E C H N O L O G IE S   - A N N U A L  R E P O R T  2 0 2 0  

1

2  

A N N U A L  R E P O R T  2 0 2 0  - M A G N IS  E N E R G Y  T E C H N O L O G IE S

02C h a ir m a n ’s  S t a t e m e n t

D e a r  S h a r e h o ld e r s , 

T h e  p a s t  y e a r  h a s  b e e n  s o m e  m a j o r  d e v e lo p m e n t s  in  o u r  
e n d e a v o u r s  t o  p la y  a  s ig n ifi c a n t  r o le  in  t h e  L it h iu m -io n  
b a t t e r y  in d u s t r y  w h ic h  is  in  it s  e a r ly  s t a g e s .

To w n s v ille  h a d  it s  fe a s ib ilit y  s t u d y  fi n a lis e d  a n d  a p p ro v e d  
b y  t h e  Q u e e n s la n d  S t a t e  g o v e r n m e n t . W o r k  o n  t h e  n e x t  
s t a g e s  o f d e v e lo p m e n t  a re  n o w  w e ll u n d e r w a y  w it h  p ro je c t  
p a r t n e r s .

O u r  fl a g s h ip  p ro je c t  in  N e w  Yo r k  h a s  t a k e n  s o m e  m a jo r  
s t e p s  t o w a rd s  p ro d u c t io n  w it h  fi n a n c in g  fo r  t h e  p ro je c t  
n e a r in g  c o m p le t io n . W e  a re  e x c it e d  t o  b e  s o  c lo s e  t o  
p ro d u c t io n  a n d  b e in g  o n e  o f t h e  m a jo r  lit h iu m -io n  c e ll 
m a n u fa c t u re r s  in  t h e  U n it e d  S t a t e s . D u r in g  t h e  la s t  1 2  
m o n t h s  w e  h a v e  in c re a s e d  o u r  o w n e r s h ip  d ire c t ly  a n d  
in d ire c t ly  t o  n e a r ly  5 8 % .

O u r  t e c h n o lo g ic a l a d v a n c e m e n t s  in  c o n ju n c t io n  w it h  o u r  
p a r t n e r  C 4 V  is  p u t t in g  u s  o n  t h e  w o r ld  s t a g e  e s p e c ia lly  w it h  
t h e  E x t r a  F a s t  C h a rg in g  b a t t e r y  t e c h n o lo g y . S e v e r a l O E M ’s  
h a v e  b e g u n  d is c u s s io n s  w it h  M a g n is  a n d  C 4 V . O u r  t e s t  
p ro g r a m  w h ic h  h a s  y ie ld e d  s ig n ifi c a n t  re s u lt s  h a s  a d v a n c e d  
t o  a n  o p t im is e d  c o m m e rc ia l c e ll p ro g r a m . N e w  Yo r k  S t a t e  
is  a ls o  fu n d in g  a  d e m o n s t r a t io n  p ro g r a m  t o  p ro v e  t h a t  t h e  
e x t r a  fa s t  c h a rg in g  t e c h n o lo g y  w o u ld  w o r k  fo r  N e w  Yo r k ’s  
T r a n s it  b u s e s , w h ic h  n o t  o n ly  in c lu d e s  C 4 V  b u t  a ls o  B A E  
S y s t e m s  a n d  C o n s o lid a t e d  E d is o n .

N a c h u  h a s  re c e iv e d  s o m e  in t e re s t  in  re c e n t  t im e s  fo r   
b o t h  o ff t a k e  a n d  fi n a n c in g . W it h  a  g lo b a l p u s h  t o  a lt e r n a t e  
s u p p ly  a w a y  fro m  t r a d it io n a l C h in e s e  s u p p ly , a ll b o d e s  w e ll 
fo r  t h e  p ro je c t . O u r  t e a m  in  T a n z a n ia  h a s  d o n e  a  b r illia n t   
jo b  in  a d v a n c in g  t h e  p ro je c t  a n d  w o r k in g  w it h  p o t e n t ia l 
o ff t a k e  p a r t n e r s .

D is t in g u is h e d  P ro fe s s o r  M . S t a n le y  W h it t in g h a m  w a s  
a w a rd e d  w it h  t h e  N o b e l P r iz e  fo r  C h e m is t r y  fo r  h is  
in v e n t io n  o f t h e  L it h iu m -io n  b a t t e r y . W e  h a v e  t h e  h u g e  
h o n o u r  h a v in g  P ro fe s s o r  W h it t in g h a m  o n  o u r  b o a rd . 

R e c e n t ly , t h e  C o m p a n y  h a s  b o ls t e re d  it s  s k ills  a n d  e x p e r t is e  
o n  t h e  B o a rd  b y  a p p o in t in g  J a m e s  D a c k  a s  E x e c u t iv e  
D ire c t o r  a n d  t h e  H o n  T ro y  G r a n t  a s  N o n -E x e c u t iv e  D ire c t o r. 
T h e ir  q u a lit ie s  w ill b e  c r it ic a l a s  t h e  C o m p a n y  m o v e s  
fo r w a rd . O u r  S e n io r  M a n a g e m e n t  t e a m  h a s  a ls o  b e e n  
s t re n g t h e n e d  w it h  t h e  a p p o in t m e n t s  o f J u r g e n  B e h re n s  
a s  C h ie f F in a n c ia l O ffi c e r, F r a n k  G io rd a n o  a s  C o m p a n y  
S e c re t a r y , R o d  C h it t e n d e n  a s  P ro je c t  D ire c t o r  fo r  t h e  N a c h u  
G r a p h it e  P ro je c t  a n d  J a c k  R o b e r t s o n  a s  S t r a t e g ic  M a n a g e r  
fo r  B a t t e r ie s .

I w o u ld  lik e  t o  t h a n k  s h a re h o ld e r s  fo r  t h e ir  o n g o in g  s u p p o r t  
a n d  fo r  o u r  t e a m  a n d  p a r t n e r s  w h o  a re  w o r k in g  n o n -s t o p  
t o  m a k e  s u re  M a g n is  is  a  h u g e  s u c c e s s  a n d  re c e iv e s  t h e  re -
r a t in g  it  d e s e r v e s .

F r a n k  P o u l l a s
E X E C U T IV E  C H A IR M A N

M A G N IS  E N E R G Y  T E C H N O L O G IE S   - A N N U A L  R E P O R T  2 0 2 0  

3

03R e v ie w  o f O p e r a t io n s

I M P A C T  O F  C O V I D -1 9  

it  s e c u re d  a  s ig n ifi c a n t  m u lt i-y e a r  o rd e r  fro m  t h e  U n it e d  
K in g d o m  G o v e r n m e n t .

T h e  C o m p a n y  a n n o u n c e d  o n  1  A p r il 2 0 2 0  t h a t  it  h a d  
im p le m e n t e d  m e a s u re s  t o  s ig n ifi c a n t ly  re d u c e  a ll n o n -
e s s e n t ia l o p e r a t in g  e x p e n s e s  a s  a  c o n s e q u e n c e  o f t h e  
t h e n  c u r re n t  e v o lv in g  m a r k e t  c o n d it io n s  c a u s e d  b y  t h e  
C O V ID -1 9  g lo b a l p a n d e m ic . T h o s e  m a r k e t  c o n d it io n s  h a v e  
s in c e  c o n t in u e d  u n a b a t e d  a s  A u s t r a lia  h a s  w it n e s s e d  t h e  
o n -g o in g  e ff e c t s  o f C O V ID -1 9 . 

L I T H I U M -I O N  B A T T E R Y  (L I B ) 
M A N U F A C T U R I N G  A N D   
E N E R G Y  S T O R A G E   

T h e  fo r a y  in t o  L IB  m a n u fa c t u r in g  is  b y  n o  s m a ll p a r t  b e in g  
le d  b y  t h e  p re s e n c e  o f D is t in g u is h e d  P ro fe s s o r  S t a n le y  
W h it t in g h a m  o n  t h e  M a g n is  B o a rd  o f D ire c t o r s . O n  9  
O c t o b e r  2 0 1 9 , t h e  R o y a l S w e d is h  A c a d e m y  o f S c ie n c e s  
a n n o u n c e d  it s  jo in t  a w a rd  o f t h e  2 0 1 9  N o b e l P r iz e  in  
C h e m is t r y  t o  D is t in g u is h e d  P ro fe s s o r  W h it t in g h a m  fo r  h is  
p io n e e r in g  c o n t r ib u t io n  t o  t h e  d e v e lo p m e n t  o f t h e  lit h iu m  
io n  b a t t e r y .

B A T T E R Y  T E C H N O L O G Y

A n  im p o r t  t e c h n o lo g y  p la n k  o f M a g n is  t h ro u g h  it s  
c o n s o r t iu m  p a r t n e r  a n d  in v e s t e e  c o m p a n y  C h a rg e  C C C V  
(C 4 V ), a re  b a t t e r y  c e lls  t h a t  d o  n o t  u s e  c o b a lt .   
T h e  d e v e lo p m e n t  o f t h e s e  b a t t e r ie s  t o w a rd s  
c o m m e rc ia lis a t io n  h a s  re c e n t ly  b e e n  a c c e le r a t e d   
t h ro u g h  g re a t e r  c o lla b o r a t io n  w it h  in d u s t r y  p la y e r s .

C 4 V  a n n o u n c e d  in  M a y  2 0 1 9  t h a t  it  h a d  s u p p lie d  b a t t e r ie s  
t o  a n  o ff t a k e  c u s t o m e r  M a r it im e  T a c t ic a l S y s t e m s  (M a r t a c ) 
u s in g  it s  p ro p r ie t a r y  B M L M P  c a t h o d e  t e c h n o lo g y  fo r  it s  
u n m a n n e d  w a t e r  a n d  s u r fa c e  v e s s e ls .  T h e s e  b a t t e r ie s  w e re  
2 0 K W  in  s iz e  a n d  t o  b e  u s e d  in  c o m m e rc ia l m a r in e  v e s s e ls  
fo r  d e m o n s t r a t io n  a n d  t e s t in g  p u r p o s e s .  

M A R TA C  is  a n  in n o v a t iv e  p ro v id e r  o f t h e  M A N TA S  lin e  o f 
U n m a n n e d  S u r fa c e  V e h ic le s  (U S V ) fo r  s e v e r a l in d u s t r ie s  
in c lu d in g  s e c u r it y , c o m m e rc ia l a n d  s c ie n t ifi c  m is s io n s  
a n d  m a r k e t s . M A N TA S  in t e g r a t e  w it h  a  w id e  a r r a y  o f 
s e n s o r s  a n d  c o m m u n ic a t io n  t e c h n o lo g ie s  a n d  o p e r a t e  in  
d iv e r s e  m a r it im e  e n v iro n m e n t s  w h e re  o t h e r  m a n n e d  a n d  
u n m a n n e d  s y s t e m s  c a n n o t .

In  F e b r u a r y  2 0 2 0 , fo llo w in g  a  t w o -y e a r  c o lla b o r a t io n , C 4 V  
e x p a n d e d  o n  t h is  c o m m e rc ia l a g re e m e n t  w it h  M A R TA C . 
C 4 V  w a s  a b le  t o  d e m o n s t r a t e  t h e  a b ilit y  o f t h e ir  B M L M P  
t e c h n o lo g y , w h ic h  le d  t o  a n o t h e r  o rd e r  fro m  M A R TA C  a f t e r  

T h e  b a t t e r ie s  p ro v id e d  t o  M A R TA C  w e re  in  t h e  s a m e  fo r m  
a s  b a t t e r ie s  t h a t  a re  p la n n e d  t o  b e  p ro d u c e d  fro m  t h e  
iM 3 N Y  G ig a fa c t o r y  in  N e w  Yo r k . M A R TA C  c o n d u c t e d  c r it ic a l 
t e s t  p ro t o c o ls  t o  q u a lify  C 4 V  c e lls , fo llo w e d  b y  d e s ig n in g  
o f b a t t e r y  p a c k s  fo r  h a r s h  e n v iro n m e n t  a n d  e x t re m e  lo a d  
a p p lic a t io n s . U p o n  s u c c e s s fu l c o m p le t io n  in  2 0 1 9 , C 4 V  w a s  
g iv e n  t h e  o p p o r t u n it y  t o  s u p p ly  m o re  F ire s a fe T M  b a t t e r ie s  
t o  b e  in t e g r a t e d  in  M A R TA C ’s  fu lly  a u t o n o m o u s  h ig h -e n d  
m a r it im e  v e s s e ls .

E F C  R E S U LT S

C y c lin g  re s u lt s  fro m  a n  u n o p t im is e d  c o m m e rc ia l s iz e  c e ll t o  
d a t e , u s in g  C 4 V  t e c h n o lo g y , h a s  p ro d u c e d  e x c it in g  re s u lt s , 
w it h  t h e  c y c lin g  life  re t e n t io n  o v e r  1 0 0 0  c y c le s , w it h  a  6  
m in u t e  c h a r g e  a n d  1  h o u r  d is c h a rg e . T h e  u n o p t im is e d  
c e ll is  w it h in  9 9 %  e n e rg y  d e n s it y  o f a  re g u la r  e n e r g y  c e ll, 
w h ic h  m e a n s  m in im a l e n e rg y  d e n s it y  lo s s  fo r  a  s u p e r  fa s t  
c h a rg e  c e ll. F o llo w in g  t h e  e x c it in g  re s u lt s , a  d e c is io n  h a s  
b e e n  m a d e  t o  c o m m e n c e  t e s t in g  o f E F C  o n  o p t im is e d  
c o m p o s it io n  o f c o m m e rc ia l c e lls . 

B a t t e r y  c e lls  o p t im is e d  fo r  v e r y  fa s t  c h a r g in g  a re  re q u ire d  
t o  m a x im is e  c h a r g in g  e n e rg y  e ffi c ie n c y , b a t t e r y  life  a n d ,  
m o s t  im p o r t a n t ly , s a fe t y . M a g n is  t e c h n o lo g y  p a r t n e r, C 4 V , 
is  a t  t h e  fo re fro n t  o f t h is  t e c h n o lo g y  d e v e lo p m e n t  a n d  h a s  
b e e n  w o r k in g  w it h  e n d  u s e r s  in c lu d in g  c o m m e rc ia l E V  
m a n u fa c t u re r s , t o  d e v e lo p  a  fu t u re  p ro o f d e s ig n  fo r  E F C  
b a t t e r ie s , w it h  a  fo c u s  o n  lo w  c o s t  a n d  s u s t a in a b le  s u p p ly  
c h a in . S e v e r a l E u ro p e a n  O E M ’s  h a v e  e x p re s s e d  in t e re s t  in  
t h e  t e c h n o lo g y  w it h  in it ia l d is c u s s io n s  b e in g  u n d e r t a k e n  
w it h  c o n fi d e n t ia lit y  a g re e m e n t s  h a v in g  b e e n  e x e c u t e d . 

N E W  Y O R K  D E M O N S T R A T IO N  P R O G R A M

A  d e m o n s t r a t io n  p ro g r a m  in  N e w  Yo r k  h a s  c o m m e n c e d  fo r  
a  P u b lic  T r a n s it  Te c h n o lo g y  a n d  In n o v a t io n  P ro g r a m  fu n d e d  
b y  N Y S E R D A , w it h  a  p ro p o s a l t o  d e v e lo p  E F C  s y s t e m  
u t ilis in g  e x t e n d e d -life  b a t t e r ie s  p ro v id e d  b y  C 4 V  w it h  it s  
B M L M P  t e c h n o lo g y .

T h e  t e c h n o lo g y  in  p la n n e d  t o  b e  d e v e lo p e d  in  B in g h a m t o n , 
N e w  Yo r k  U S , a n d  t e s t e d  a t  B A E  S y s t e m s  b e fo re  b e in g  
in s t a lle d  fo r  s o m e  N e w  Yo r k  C it y  b u s  ro u t e s . T h e  p la n  is   
t o  re m o v e  5 0 0 ,0 0 0  m e t r ic  t o n s  o f c a r b o n  d io x id e  a n n u a lly  
fro m  t h e  N e w  Yo r k  C it y  m e t ro  a re a , w h ils t  in c re a s in g   
e n e r g y  e ffi c ie n c y  a n d  lo w e r in g  u p fro n t  c o s t s  v e r s u s  t h e  
c u r re n t  s y s t e m .

4  

A N N U A L  R E P O R T  2 0 2 0  - M A G N IS  E N E R G Y  T E C H N O L O G IE S

M A G N IS  E N E R G Y  T E C H N O L O G IE S   - A N N U A L  R E P O R T  2 0 2 0  

5

R e v ie w  o f O p e r a t io n s

C o n s o lid a t e d  E d is o n  w ill b e  re s p o n s ib le  fo r  c h a rg in g , w it h  
b u s  s t o p s  e q u ip p e d  w it h  ro b o t ic  a r m s  t h a t  h a v e  t h e  a b ilit y  
re a c h  d o w n  fro m  t h e  o v e r h e a d  e le c t r ic  w ire s  a n d  c o n n e c t  
t o  t h e  b u s e s ’ b a t t e r ie s  t o  re c h a rg e  t h e m  in  5  t o  1 0  m in u t e s .

G R A P H IT E

W it h  re s p e c t  t o  G r a p h it e  p ro c e s s in g , M a g n is  c o n t in u e d  
t o  o p t im is e  it s  p ro d u c t  o ff e r in g  fo r  e m e r g in g  g ro w t h  
a p p lic a t io n s  s u c h  a s  L IB s . G r a p h it e  is  u s e d  in  t h e  a n o d e  o f 
t h e  b a t t e r y  a n d  it  is  w h e re  o x id a t io n  t a k e s  p la c e  o f lit h iu m  
m e t a l t h a t  is  fo r m e d  in  t h e  c h a rg in g  o f t h e  b a t t e r y .  T h e  
fre e d  e le c t ro n s  fro m  o x id a t io n  fl o w  o u t  o f t h e  b a t t e r y  t o  
d is c h a rg e  t h e  s t o re d  e n e rg y .

M a g n is  p ro c e s s  o p t im is a t io n  p ro g r a m s  c o n t in u e  t o  re fi n e  
t h e  a b ilit y  t o  p ro d u c e  g r a p h it e  p ro d u c t s  w it h  p u r it ie s  
r a n g in g  fro m  9 9  t o  9 9 .9 5 %  w it h o u t  t h e  u s e  o f c h e m ic a l o r  
t h e r m a l p u r ifi c a t io n . T h e  m illin g  a n d  fl o t a t io n  s t e p s  u s e d  
a s  h ig h lig h t e d  in  t h e  t a b le  b e lo w  a re  m e c h a n ic a l p ro c e s s e s  
t h a t  a re  s ig n ifi c a n t ly  lo w e r  c o s t  t h a n  c u r re n t ly  u s e d  
c h e m ic a l a n d  t h e r m a l p u r ifi c a t io n  p ro c e s s e s  t h a t  t y p ic a lly  
c o s t  o v e r  U S $ 1 ,0 0 0 /t .

S t a g e

P r o c e s s  O v e r v ie w

I n d ic a t iv e  
P u r it y  
(% T G C )

I n d ic a t iv e  
C o s t  
(U S $ /t )

Mine Processing 
Plant

Downstream 
Stage 1

Downstream 
Stage 2

4 Steps of milling and flotation

>99

5501

4 Steps of milling and flotation

99.8

Milling and Spheronisation 
steps

99.95

100

100

B a s e d  o n  2 0 1 6  fe a s ib ilit y  s t u d y

Ta b le  1  – N a c h u  p ro c e s s in g  s te p s  a n d  in d ic a tiv e  c o s t fo r m a k in g  
u n c o a te d  s p h e ric a l g ra p h ite  fo r L IB s

T h e re  a re  c u r re n t ly  fe w  m in e s  a b le  t o  p ro d u c e  s u c h  h ig h  
p u r it y  g r a p h it e  fl a k e  w h ils t  m a in t a in in g  a  la r g e  fl a k e  s iz e  
d is t r ib u t io n  a lo n g  w it h  h ig h  re c o v e r ie s . B a s e d  o n  re c e n t  
m a r k e t  a n a ly s is  a n d  fe e d b a c k , a  c o s t -e ff e c t iv e  g re e n  a n o d e  
w o u ld  b e  a n  id e a l c a n d id a t e  fo r  t h e  L IB  in d u s t r y . E a r ly  
d e v e lo p m e n t  c e ll t e s t in g  o f a n  a n o d e  b le n d  c o n t a in in g  
s p h e r ic a l c o a t e d  m a t e r ia l d e r iv e d  fro m  N a c h u  g r a p h it e  h a s  
d e m o n s t r a t e d  e x c e lle n t  b a t t e r y  p e r fo r m a n c e ; s h o w c a s in g  
1 0 0 0  c y c le s  a n d  s t ill re t a in in g  a ro u n d  9 0 %  c a p a c it y . T h e s e  
e a r ly  re s u lt s  a re  a n  im p ro v e m e n t  o v e r  m o s t  c o m m e rc ia lly  
a v a ila b le  a n o d e  m a t e r ia ls  a n d  w o r k  o n  c o a t in g  o p t im is a t io n  
is  e x p e c t e d  t o  c o n fi r m  s ig n ifi c a n t  p e r fo r m a n c e  
im p ro v e m e n t  t a r g e t in g  8 0 %  lo s s  a f t e r  5 ,0 0 0  c y c le s .

In  t h e  p a s t  fe w  y e a r s , M a g n is  h a s  r ig o ro u s ly  t e s t e d  t h e  
g r a p h it e  q u a lit ie s  fro m  N a c h u  a n d  t h e  o u t s t a n d in g  
p e r fo r m a n c e s  a n d  re s u lt s  a c h ie v e d  d u r in g  t h is  t im e  h a s  
d ire c t e d  a t t e n t io n  t o  fo c u s  o n  a  m u lt i a p p ro a c h  s t r a t e g y  
w h e re  M a g n is  h a s  a ls o  b e c o m e  in v o lv e d  in  L IB  p ro d u c t io n  
a n d  d e v e lo p m e n t .  T h e re  h a s  b e e n  a n  e s c a la t io n  in  
re s o u rc e s  d e v o t e d  t o  it s  lit h iu m -io n  c o m m e rc ia l a n o d e  
d e v e lo p m e n t  p ro g r a m s .  T h e s e  re s o u rc e s  in c lu d e  
a d d it io n a l d o w n s t re a m  t e c h n ic a l e x p e r t is e  a n d  in d u s t r y  
le a d in g  b a t t e r y  t e s t  fa c ilit ie s  t o  a llo w  fo r  c e lls  a n d  b a t t e r y  
fa b r ic a t io n  d e v e lo p m e n t  u t ilis in g  N a c h u  a n o d e  m a t e r ia l.  

F ig u re  1 . C o m m e rc ia l s iz e  2 A h  lith iu m  io n  c e ll s h o w c a s in g  1 0 0 0  c y c le s  a n d  a n  e x c e lle n t c h a rg e -d is c h a rg e  e ffi c ie n c y.

6  

A N N U A L  R E P O R T  2 0 2 0  - M A G N IS  E N E R G Y  T E C H N O L O G IE S

 
M A G N IS  E N E R G Y  T E C H N O L O G IE S   - A N N U A L  R E P O R T  2 0 2 0  

7

“  F u n d in g  is  n e a r in g  c o m p le t io n  
w it h  fi r s t  p r o d u c t io n  e x p e c t e d  in  
2 0 2 1  a t  g ig a w a t t  s c a le  m a k in g  it  
o n e  o f  t h e  la r g e s t  b a t t e r y  p la n t s  in  
t h e  U n it e d  S t a t e s . “

R e v ie w  o f O p e r a t io n s

C O N S O L I D A T I O N  O F  O W N E R S H I P  
I N  I M P E R I U M 3 -N E W  Y O R K  L L C  
(I M 3 N Y )

O n  3 0  J u n e  2 0 2 0  M a g n is  a n n o u n c e d  t h e  c o m p le t io n  o f 
t h e  p u rc h a s e  t r a n s a c t io n  t h a t  in c re a s e d  it s  s h a re h o ld in g  
in  iM 3 N Y  t o  5 3 .3 9 %  (o n  a  d ire c t  s h a re h o ld in g  b a s is ) a n d  t o  
5 7 .9 1 %  (o n  a  d ire c t  a n d  in d ire c t  s h a re h o ld in g  b a s is ). T h e  
t r a n s a c t io n  re s u lt e d  in  t h e  a c q u is it io n  o f B o s t o n  E n e rg y  a n d  
In n o v a t io n  P t y  L im it e d ’s  (“B E I”) e n t ire  s h a re h o ld in g , a s  w e ll 
a s  B o s t o n  O p p o r t u n it ie s  N o . 1  P t y  L im it e d ’s  (a  s u b s id ia r y  o f 
B E I) s h a re h o ld in g , in  t h e  U S  b a s e d  e n t it y , iM 3 N Y.

T h e  p u rc h a s e  c o n s id e r a t io n  fo r  t h e  in c re a s e d  s h a re h o ld in g  
w a s  U S $ 3 5 0 ,0 0 0 , w it h  t h e  p u rc h a s e  t r a n s a c t io n  c o m p le t e d  
o n  3 0  J u n e  2 0 2 0 . A n  a d d it io n a l U S $ 1 5 0 ,0 0 0  b o n u s  p a y m e n t  
is  t o  b e  p a id  t o  B E I o n  t h e  c o n d it io n  t h a t  iM 3 N Y  s u c c e s s fu lly  
s e c u re s  p ro je c t  fi n a n c e  o r  a  jo in t  v e n t u re  a g re e m e n t  w it h  
a n  o ff t a k e  p a r t n e r  fo r  t h e  iM 3 N Y ’s  b a t t e r y  p la n t , w it h in  a  
t w e lv e -m o n t h  p e r io d .

M a g n is  n o w  h a s  a  5 3 .3 9 %  d ire c t  h o ld in g  in  iM 3 N Y. C 4 V  
h a s  a  d ire c t  h o ld in g  o f 4 5 .1 7 % , a n d  t w o  o t h e r  c o m p a n ie s , 
P r im e t  P re c is io n  M a t e r ia ls  In c  a n d  C & D  A s s e m b ly  In c , a re  
t h e  o t h e r  s h a re h o ld e r s  in  iM 3 N Y, o w n in g  t h e  re m a in in g  
1 .4 4 % . A s  a n n o u n c e d  b y  t h e  C o m p a n y  o n  3 0  S e p t e m b e r  
2 0 1 9 , iM 3 N Y  e q u ip m e n t  w a s  in d e p e n d e n t ly  v a lu e d  a t  
U S $ 7 1 .3 4  m illio n  (A $ 1 1 5 .5  m illio n ) b y  O ’B r ie n  &  G e re , 
a  w h o lly -o w n e d  s u b s id ia r y  o f D u t c h  e n g in e e r in g  g ia n t  
R a m b o ll G ro u p .

M a g n is  is  a ls o  a  1 0 %  s h a re h o ld e r  o f C 4 V , a n d  t h e re fo re  
fo llo w in g  t h e  B E I t r a n s a c t io n , it s  t o t a l  o w n e r s h ip  in  iM 3 N Y  
o n  a  d ire c t  a n d  in d ire c t  b a s is  is  5 7 .9 1 % .

8  

A N N U A L  R E P O R T  2 0 2 0  - M A G N IS  E N E R G Y  T E C H N O L O G IE S

F ig u re  2 : P ro p o s e d  N e w  
Yo rk  1  G W h  p la n t la y o u t

F ig u re  3 . M a c h in e r y  
in  N e w  Yo rk  P la n t

F ig u re  4 . P a r t 
o f th e  N e w  Yo rk  
p ro d u c tio n  p la n t

N E W  Y O R K

Im p e r iu m 3  N e w  Yo r k , In c o r p o r a t e d  (iM 3 N Y ) is  a  
c o m p a n y  e s t a b lis h e d  in  t h e  U S A  t h a t  o w n s  b a t t e r y   
p la n t  a s s e t s  lo c a t e d  in  a  p la n n e d  L IB  m a n u fa c t u r in g  
fa c ilit y  b a s e d  a t  t h e  H u ro n  C a m p u s  in  E n d ic o t t ,  
N e w  Yo r k .  iM 3 N Y  p u rc h a s e d  t h e  p la n t  e q u ip m e n t   
a n d  m a c h in e r y  w h ic h  in c lu d e s  o p e r a t io n s  s u c h   
a s  s lu r r y  m a k in g  t o  c o a t in g  t o  c e ll a s s e m b ly   
a n d  fo r m a t io n .  

O v e r  t h e  p a s t  s ix  m o n t h s , t h re e  m a jo r  re p o r t s  w e re  
c o m m is s io n e d  a n d  c o m p le t e d  t o  re fi n e  p ro je c t   
w o r k s , s c h e d u le s  a n d  c o s t s  fo r  d u e  d ilig e n c e  b y  
p ro s p e c t iv e  fi n a n c ie r s .  D e t a ile d  e n g in e e r in g  w o r k   
w a s  c o m p le t e d  b y  D u t c h  E n g in e e r in g  g ia n t ,  
R a m b o ll G ro u p  (“R a m b o ll”), a n d  a  la r g e  in d e p e n d e n t  
c o n s u lt in g  fi r m  w a s  h ire d  b y  a  p o t e n t ia l in v e s t o r   

t o  c o m p le t e  t h e  fi n a n c ia l, t e c h n ic a l a n d  b u s in e s s  d u e  
d ilig e n c e  o f iM 3 N Y.

A  p ro je c t  t e a m  o f c lo s e  t o  t w e n t y  p e o p le  fro m   
R u m b o ll w it h  C 4 V  (M a g n is  b a t t e r y  p a r t n e r ) a n d  iM 3 N Y  
h a s  p e r fo r m e d  t h is  re c e n t  w o r k  c o v e r in g  p la n t  la y o u t , 
fa c ilit y  a n d  u t ilit y  d e s ig n , s a fe t y , e n v iro n m e n t , p ro c e s s , 
in v e n t o r y  m a n a g e m e n t  a n d  o p e r a t io n s . A n  in d e p e n d e n t  
v a lu a t io n  c o m p le t e d  b y  O ’B r ie n  &  G e re , a  w h o lly  
o w n e d  s u b s id ia r y  o f R a m b o ll, v a lu e d  t h e  e q u ip m e n t  
a t  U S $ 7 1 .3 4  m illio n  (A $ 1 0 5 .5  m illio n ), w it h  M a g n is  
o w n e r s h ip  a t  n e a r ly  5 8 %  in  t h e  p ro je c t .

F u n d in g  is  n e a r in g  c o m p le t io n  w it h  fi r s t   
p ro d u c t io n  e x p e c t e d  in  2 0 2 1  a t  g ig a w a t t  s c a le   
m a k in g  it  o n e  o f t h e  la rg e s t  b a t t e r y  p la n t s  in  t h e   
U n it e d  S t a t e s .

M A G N IS  E N E R G Y  T E C H N O L O G IE S   - A N N U A L  R E P O R T  2 0 2 0  

9

R e v ie w  o f O p e r a t io n s

T O W N S V IL L E

S it e

Im p e r iu m 3  To w n s v ille  P t y  L im it e d  (“iM 3 T S V ”) h a s  fi n a lis e d  
it s  fe a s ib ilit y  s t u d y  (t h e  “S t u d y ”) fo r  a n  1 8  G W h  lit h iu m -
io n  b a t t e r y  c e ll m a n u fa c t u r in g  fa c ilit y  in  To w n s v ille , 
Q u e e n s la n d . M a g n is  o w n s  o n e  t h ird  o f iM 3 T S V . A s  
a n n o u n c e d  o n  5  J u n e  2 0 1 8 , fo r m a l a g re e m e n t s  t o  fa s t  t r a c k  
t h e  To w n s v ille  b a t t e r y  p la n t  p ro je c t  w e re  s ig n e d  w it h  t h e  
fe a s ib ilit y  s t u d y  t o  c o m m e n c e  s h o r t ly  a f t e r  (A S X  R e le a s e ,  
5  J u n e  2 0 1 8 ). T h e  p ro je c t  a ls o  re c e iv e d  a  $ 3 .1  m illio n  
 g r a n t  fro m  t h e  Q u e e n s la n d  G o v e r n m e n t  (A S X  R e le a s e ,  
2 7  A u g u s t  2 0 1 8 ).

T h e  fe a s ib ilit y  s t u d y  w a s  u n d e r t a k e n  t o  d e v e lo p  t h e  
d e t a ile d  e n g in e e r in g  p la n  fo r  t h e  p ro je c t  a n d  t o  e s t a b lis h  
fi n a n c ia l v ia b ilit y  t o  s u p p o r t  s u b s e q u e n t  in v e s t m e n t  
d e c is io n  a n d  p ro je c t  fu n d in g . A  s ig n ifi c a n t  o u t c o m e  o f t h e  
s t u d y  w a s  t o  p h a s e  t h e  p ro je c t  o v e r  3  s t a g e s  o f 6  G W h s  
e a c h , fo r  a  t o t a l n o m in a l c a p a c it y  o f 1 8  G W h . T h is  n o t  
o n ly  re d u c e s  t h e  u p fro n t  c a p it a l e x p e n d it u re  t o  a  m o re  
m a n a g e a b le  A $ 1 .1 2 B  fo r  t h e  fi r s t  s t a g e , b u t  a ls o  a llo w s  fo r  
p ro je c t  e x p a n s io n  t o  o c c u r  in  lin e  w it h  d e v e lo p m e n t s  in  
t e c h n o lo g y  a n d  t h e  m a r k e t . 

F ig u re  5 . M o d e l im a g e  o f p ro p o s e d  iM 3 T S V  p la n t.

S t a g e  1  

• B u ild in g  W o r k s  

• R o a d  W o r k s  

• E x t e r n a l W o r k s  a n d  S e r v ic e s  

T O TA L  - S TA G E  1  

S t a g e  2  

• B u ild in g  W o r k s  

• E x t e r n a l W o r k s  a n d  S e r v ic e s  

T O TA L  - S TA G E  2  

S t a g e  3  

• B u ild in g  W o r k s  

• E x t e r n a l W o r k s  a n d  S e r v ic e s  

T O TA L  - S TA G E  3  

C O N S T R U C T IO N  C O N T IN G E N C Y  

T O T A L  C O N S T R U C T I O N  C O S T  (e x c l. G S T ) 

T h e  s it e  is  p a r t  o f L a n s d o w n  S t a t io n  a p p ro x im a t e ly  4 0 k m  
s o u t h  o f t h e  To w n s v ille  C B D  w it h  a  t o t a l p ro p e r t y  a re a  o f 
3 5 7  h e c t a re s  (F ig u re s  1  a n d  2 ). It  o ff e r s  fl a t  t e r r a in  a n d  is  
p re d o m in a n t ly  v a c a n t  la n d  w it h  lim it e d  n a t u r a l v e g e t a t io n . 
S it u a t e d  o n  t h e  w e s t e r n  s id e  o f t h e  F lin d e r s  H ig h w a y , 
b o u n d e d  t o  t h e  n o r t h  b y  G h o s t  G u m  R o a d  a n d  s o u t h  b y  
B id w illi R o a d , fo r m in g  p a r t  o f a  n e w  ‘g re e n ’ in d u s t r ia l  
w it h  a  t o t a l a re a  o f a p p ro x im a t e ly  2 ,0 7 0  h e c t a re s  w h ic h  
h a s  n o w  b e e n  re z o n e d . E n v iro n m e n t a l a s s e s s m e n t s  o f t h e  
s it e  in c lu d in g  fl o r a  a n d  fa u n a , s t o r m w a t e r, h y d ro lo g y  a n d  
fl o o d in g , g e o t e c h n ic a l a n d  c u lt u r a l h e r it a g e  fo u n d   
n o  m a jo r  im p e d im e n t s  t o  d e v e lo p  t h e  p la n t  a t  t h is  s it e   
(s u b je c t  t o  d e v e lo p m e n t  c o n s e n t ). M a jo r  in fr a s t r u c t u re  
a n d  u t ilit ie s  s u c h  a s  ro a d s , e le c t r ic it y  a n d  g a s  a re  a lre a d y  in  
c lo s e  p ro x im it y .

C a p it a l C o s t

iM 3 T S V ’s  s t a g e d  a p p ro a c h  t o  d e v e lo p in g  t h e  p ro je c t  h a s  
s ig n ifi c a n t  b e n e fi t s  fo r  fu n d in g  a n d  p ro d u c t  d e v e lo p m e n t . 
To w n s v ille  b a s e d  q u a n t it y  s u r v e y o r s  R id e r  L e v e t t  B u c k n a ll 
(R L B ) c o m p le t e d  a n  in d e p e n d e n t  re v ie w  o f c a p it a l 
e x p e n d it u re s  fo r  e a c h  s t a g e  a s  s h o w n  b e lo w .

T h e  c o s t  fo r  s t a g e  1  is  s lig h t ly  h ig h e r  t h a n  s t a g e s  2  a n d  3 , 
d u e  t o  t h e  n e e d  fo r  iM 3 T S V  t o  c o n t r ib u t e  t o  t h e  c o s t  o f 
e x t e n d in g  s o m e  t r u n k  in fr a s t r u c t u re  s e r v ic e s  t o  t h e  s it e .

“ T h e  f e a s ib ilit y  s t u d y  w a s  u n d e r t a k e n  
t o  d e v e lo p  t h e  d e t a ile d  e n g in e e r in g  
p la n  f o r  t h e  p r o je c t  a n d  t o  e s t a b lis h  
fi n a n c ia l v ia b ilit y  t o  s u p p o r t  s u b s e q u e n t  
in v e s t m e n t  d e c is io n  a n d  p r o je c t  f u n d in g .”

$

9 4 4 ,3 6 0 ,1 7 3  

1 4 ,3 8 6 ,5 7 2  

1 6 3 ,5 9 4 ,3 2 2  

1 ,1 2 2 ,3 4 1 ,0 6 7

9 2 0 ,7 6 3 ,0 5 5  

2 3 ,8 9 1 ,0 1 0  

9 4 4 ,6 5 4 ,0 6 5

9 3 3 ,0 0 3 ,8 4 7  

3 0 ,4 2 4 ,8 9 0  

9 6 3 ,4 2 8 ,7 3 7

2 3 ,4 1 5 ,4 4 9

3 ,0 5 3 ,8 3 9 ,3 1 8

1 0  

A N N U A L  R E P O R T  2 0 2 0  - M A G N IS  E N E R G Y  T E C H N O L O G IE S

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
F ig u re  6 . A n  a r tis t ’s  im p re s s io n  o f th e  p ro p o s e d  iM 3 T S V  F a c to r y.

M A G N IS  E N E R G Y  T E C H N O L O G IE S   - A N N U A L  R E P O R T  2 0 2 0  

1 1

R e v ie w  o f O p e r a t io n s

F ig u re  7 . A n o t h e r a r tis t ’s  im p re s s io n  o f th e  p ro p o s e d  iM 3 T S V  fa c to r y  p la n t. 

F in a n c ia l A n a ly s is

P ro je c t  re v e n u e s  a n d  o p e ra t in g  c o s t s  w e re  c o m p ile d  u s in g  
c o n s e r v a t iv e  in p u t s  w h ic h  w e re  u s e d  to  c re a te  a  ro b u s t  
fi n a n c ia l m o d e l fo r t h e  p ro je c t. T h is  m o d e l e n a b le s  d e t a ile d  
a n a ly s is  a n d  s c e n a r io  te s t in g  in c lu d in g  p ro d u c t  c h e m is t r ie s , 
p ro d u c t io n  p a ra m e te rs  a n d  fi n a n c in g  o p t io n s . T h e  t a b le  
b e lo w  s h o w s  t h e  k e y  fi n a n c ia l m e t r ic s  o f a  c o n s e r v a t iv e  

b a s e  c a s e  a s s u m in g  n o  fi n a n c ia l in c e n t iv e s  fro m   
g o v e r n m e n t  a n d  iM 3 T S V  a c h ie v in g  a n  8 0 %  p ro d u c t io n  
y ie ld  w it h  s t a n d a rd  p ro d u c t io n  c o n fi g u ra t io n .  

N a t io n a l A u s t ra lia  B a n k  (‘N A B ’) w a s  a p p o in te d  a s  iiM 3 T S V ’s  
fi n a n c ia l a d v is e r to  a s s is t  in  d e v e lo p in g  a  p ro je c t  fu n d in g  
s t ra te g y , w h ic h  fo r m e d  p a r t  o f t h e  s t u d y .

P r o j e c t  r e t u r n s  (n o  t e r m i n a l  v a l u e

N P V @  3 0 -N o v -1 8  (‘0 0 0 ,0 0 0 )

P ro je c t  

P ro je c t  a f t e r  D e b t    

P ro je c t  a f t e r  D e b t  &  T a x  

2 ,5 4 2  

2 ,7 2 3  

1 ,5 6 9  

I R R

2 1 .5 %

2 8 %

2 1 5

1 2  

A N N U A L  R E P O R T  2 0 2 0  - M A G N IS  E N E R G Y  T E C H N O L O G IE S

 
N A C H U  G R A P H IT E  P R O J E C T   

T h e  N a c h u  G r a p h it e  P ro je c t  is  lo c a t e d  n e a r  R u a n g w a , in  t h e  
s o u t h -e a s t  o f T a n z a n ia  a n d  a p p ro x im a t e ly  2 2 0 k m  t o  t h e  
T a n z a n ia n  p o r t  o f M t w a r a .

T h e  N a c h u  G r a p h it e  P ro je c t  is  s h o v e l re a d y  w it h  a  S p e c ia l 
M in in g  L ic e n c e  (S M L ) S M L  5 5 0 /2 0 1 5  o n  t h e  p ro je c t  g r a n t e d  
b y  t h e  M in is t r y  o f E n e rg y  a n d  M in e r a ls  (M E M ) o f T a n z a n ia  in  
S e p t e m b e r  2 0 1 5 .  T h e  S M L  w a s  g r a n t e d  t o  U r a n e x  T a n z a n ia  
L im it e d  (U T Z ), a  w h o lly -o w n e d  s u b s id ia r y  o f M a g n is .

S p e c ia l E x p o r t  Z o n e  (S E Z ) le g is la t io n  w a s  in t ro d u c e d  in  
T a n z a n ia  in  2 0 0 6 .  T h e  le g is la t io n  p ro v id e s  in c e n t iv e s  
fo r  c o m p a n ie s  t o  c re a t e  v a lu e  a d d it io n  a n d  a d v a n c e  
e m p lo y m e n t  a n d  d e v e lo p m e n t  o f t h e  c o u n t r y . 

S E Z  lic e n c e s  a re  is s u e d  b y  t h e  M in is t e r  o f In d u s t r y  a n d  T r a d e  
w it h  k e y  b e n e fi t s  in c lu d in g  t h e  e x e m p t io n  fro m  p a y m e n t  
o f c o r p o r a t e  t a x  fo r  u p  t o  1 0  y e a r s , t h e  e x e m p t io n  o f t a x e s  
a n d  d u t ie s  fo r  m a c h in e r y , e q u ip m e n t  a n d  c o n s t r u c t io n  
m a t e r ia ls  fo r  t h e  d e v e lo p m e n t  o f S E Z  in fr a s t r u c t u re  a n d  
t h e  e x e m p t io n  fro m  p a y m e n t  o f w it h h o ld in g  t a x  o n  re n t , 
d iv id e n d s  a n d  in t e re s t  fo r  1 0  y e a r s .

To  d a t e , t h e  m a jo r it y  o f e x is t in g  S E Z  lic e n c e  o w n e r s  c o m e  

fro m  t h e  A g r ic u lt u re  P ro c e s s in g , A s s e m b ly  a n d  E n g in e e r in g  
a n d  Te x t ile  a n d  A p p a re l s e c t o r s .

M a g n is  w a s  p ro v id e d  a p p ro v a l b y  t h e  E x p o r t  P ro c e s s in g  
Z o n e s  A u t h o r it y  (E P Z A ) in  M a rc h  2 0 1 7  t o  o p e r a t e  w it h in  a  
S E Z  in  T a n z a n ia  w h ic h  w ill a llo w  t h e  C o m p a n y  t o  a p p ly  t h e  
a d v a n c e d  t e c h n o lo g ie s  it  h a s  b e e n  d e v e lo p in g  t o  p ro d u c e  
v a lu e  e n h a n c e d  g r a p h it e  p ro d u c t s . 

T h e  S E Z  u n d e r  t h e  ju r is d ic t io n  o f t h e  D e p a r t m e n t  o f 
In d u s t r y , T r a d e  a n d  In v e s t m e n t , g o v e r n s  t h e  o p e r a t io n  
o f t h e  g r a p h it e  p ro c e s s in g  p la n t  a n d  is  n o t  s u b je c t  t o  t h e  
c h a n g e s  in  t h e  m in in g  le g is la t io n  a n n o u n c e d  la t e  in  2 0 1 7 .  
F o llo w in g  t h e  in t ro d u c t io n  o f n e w  m in in g  s e c t o r  le g is la t io n  
in  T a n z a n ia  d u r in g  t h e  s e c o n d  h a lf o f 2 0 1 7 , M a g n is  h a s  
c o n t in u e d  t o  p ro g re s s  d is c u s s io n s  w it h  t h e  G o v e r n m e n t  
o f T a n z a n ia  (G O T ) re g a rd in g  t h e  d e v e lo p m e n t  o f t h e  
m in in g  a n d  p ro c e s s in g  p ro je c t s .  T h e  G O T  h a s  e x p re s s e d  
it s  d e s ire  t o  s e e  t h e  im p le m e n t a t io n  o f la rg e  p ro je c t s  t h a t  
w ill a d d  s ig n ifi c a n t  v a lu e  t o  t h e  c o u n t r y ’s  e c o n o m y  a n d  
d e v e lo p m e n t .

T h o s e  d is c u s s io n s  le d  t o  M a g n is  s u b m it t in g  a  p ro p o s a l 
o u t lin in g  t h a t  t h e  e n t ire  N a c h u  p ro c e s s in g  p la n t  w ill 
o p e r a t e  u n d e r  M a g n is  Te c h n o lo g ie s  T a n z a n ia  L im it e d  
(M T T ), a  w h o lly -o w n e d  s u b s id ia r y  o f M a g n is , in  t h e  S E Z  
lic e n c e  a re a , w it h  t h e  p ro d u c t s  fro m  t h e  S E Z  c o n t in u in g  t o  

T h e  i m p a c t s  o f  t h e  a m e n d e d  S E Z  o n  M T T  a n d  U T Z  i s  s e t  o u t  i n  t h e  t a b l e  b e l o w .

U r a n e x  T a n z a n i a  L i m i t e d

M a g n i s  T e c h n o l o g i e s  T a n z a n i a  L i m i t e d

G o v e r n m e n t  J u r i s d i c t i o n : 
M in is t r y  o f M in e r a ls

G o v e r n m e n t  J u r i s d i c t i o n : 
M in is t r y  o f In d u s t r y , T r a d e  a n d  In v e s t m e n t

S c o p e  o f  O p e r a t i o n s :
O w n e r s h ip  o f m in in g  lic e n c e
E s t a b lis h  m in in g  q u a r r y  t o  d e liv e r  o re  t o  S E Z  a n d  in c lu d e s  
o p e r a t io n  o f m in in g  p it s  a n d  w a s t e  s t o c k p ile s
C o n t r a c t  m in in g  o p e r a t io n s

C a p i t a l  E x p e n d i t u r e
~ U S $ 4 0  m illio n

S c o p e  o f  O p e r a t i o n s :
O w n e r s h ip  o f p ro c e s s in g  p la n t  in  S E Z
O w n e r s h ip  o f u t ilit ie s  in c lu d in g  p o w e r  p la n t  lo c a t e d  
w it h in  t h e  S E Z
O w n e r s h ip  o f w a re h o u s e  a n d  p o r t  s t o r a g e  fa c ilit ie s
G r a p h it e  ro c k  c r u s h in g , g r in d in g  a n d  fl o t a t io n  c irc u it  
o p e r a t io n s  fo r  c o n c e n t r a t e  p ro d u c t io n  
O p e r a t io n  o f p u r ifi c a t io n  o p e r a t io n s  fo r  h ig h  p u r it y  
g r a p h it e  p ro d u c t io n
P ro c e s s in g  o f h ig h  p u r it y  g r a p h it e  t o  m a k e  v a lu e  a d d e d  
p ro d u c t s  fo r  a p p lic a t io n s  t h a t  in c lu d e  lit h iu m  io n  b a t t e r y  
M a r k e t in g  a n d  e x p o r t  o f p ro d u c t s

C a p i t a l  E x p e n d i t u r e :  
~ U S $ 2 3 0  m illio n

I n c e n t i v e s :
T a x  a n d  d u t y  b re a k s
F u ll o w n e r s h ip  b y  M a g n is
In t e r n a t io n a l a r b it r a t io n
N o  re s t r ic t io n  o f re t a in in g  e a r n in g s  o u t s id e  o f T a n z a n ia

M A G N IS  E N E R G Y  T E C H N O L O G IE S   - A N N U A L  R E P O R T  2 0 2 0  

1 3

R e v ie w  o f O p e r a t io n s

F ig u re  8 .  P ro p o s e d   N a c h u  G ra p h ite  P ro je c t S ite  la y o u t

1 4  

A N N U A L  R E P O R T  2 0 2 0  - M A G N IS  E N E R G Y  T E C H N O L O G IE S

b e  a d v a n c e d  g r a p h it e  p ro d u c t s  t h a t  c a n  b e  m a d e  u s in g  
M a g n is ’ p ro p r ie t a r y  t e c h n o lo g y . 

C A P I T A L  M A R K E T S

M T T  w ill in it ia lly  p ro d u c e  re fi n e d  J u m b o  a n d  S u p e r  
J u m b o  F la k e  p ro d u c t s  a n d  s p h e ro id a l g r a p h it e  p ro d u c t s  
fo r  t h e  L IB  m a r k e t .  U T Z  w ill o p e r a t e  u n d e r  t h e  la w s  a n d  
re g u la t io n s  a p p lic a b le  t o  t h e  c o u n t r y ’s  m in in g  in d u s t r y  
u n d e r  t h e  M in is t r y  o f M in e r a ls  (p re v io u s ly  M in is t r y  o f 
E n e rg y  a n d  M in e r a ls ). 

T h e  k e y  c h a n g e  u n d e r  t h e  a m e n d e d  a g re e m e n t  is  t h a t  
M T T  w ill n o w  p u rc h a s e  g r a p h it e  o re  d ire c t ly  fro m  U T Z , 
w h ic h  is  t h e  h o ld e r  o f t h e  S M L  fo r  N a c h u .  T h is  d iff e r s  fro m  
t h e  p re v io u s  a r r a n g e m e n t  w h e re b y , it  w a s  a g re e d  t h a t  
M T T  w o u ld  b u y  g r a p h it e  c o n c e n t r a t e  fro m  U T Z .  T h e  s a le  
p r ic e  o f g r a p h it e  o re  fro m  N a c h u , a s  p e r  t h e  p ro p o s a l t o  
t h e  G O T , w ill b e  b a s e d  o n  a n  a g re e d  fo r m u la  fo r  t h e  v a lu e  
o f t h e  o re  a t  t h e  g a t e  w it h  c o n s id e r a t io n  t o  in t e r n a t io n a l 
b e n c h m a r k  p r ic in g  t o  e n s u re  t r a n s p a re n c y . 

A t  a  p ro je c t  le v e l, U T Z  w ill c o n t ro l t h e  m in in g  o r  q u a r r y  
o p e r a t io n s , w a t e r  s u p p ly  s y s t e m  a n d  t a ilin g s  d a m  
o p e r a t io n , a n d  w ill d e liv e r  o re  t o  t h e  M T T  p ro c e s s in g  
p la n t .  U T Z  w ill a ls o  o p e r a t e  in  a c c o rd a n c e  w it h  t h e  
le g is la t io n  c h a n g e s  m a d e  in  2 0 1 7  re g a rd in g  G O T  
p a r t ic ip a t io n .

T h e  S E Z  is  s it e d  o v e r  t h e  o r ig in a l S M L  p la n t  in fr a s t r u c t u re  
lo c a t io n  a llo w in g  fo r  c o n t in u e d  b e s t  c a s e  e c o n o m ic s  
fo r  o re  t r a n s p o r t a t io n .  M a g n is  c o n t in u e s  t o  re a s s e s s  
t h e  p re v io u s  B F S  w it h  re v is e d  p r ic in g  a n d  o b t a in  
s e p a r a t e  C a p e x  a n d  O p e x  c o s t s  fo r  b o t h  M T T  a n d  U T Z .  
E n g in e e r in g , P ro c u re m e n t  a n d  C o n s t r u c t io n  c o s t s  a re  
c u r re n t ly  b e in g  s o u rc e d , t o g e t h e r  w it h  t h e  a ll-im p o r t a n t  
p ro je c t  fu n d in g  o p p o r t u n it ie s .

T h e  S E Z  a re a  c o v e r s  2 0 6  h e c t a re s  a n d  h a s  b e e n  e x c is e d  
fro m  t h e  o r ig in a l N a c h u  S M L .  A  m a p  s h o w in g  t h e  S E Z  
lic e n c e  a re a  is  s h o w n  in  t h e  fi g u re  b e lo w .

W it h in  t h e  p a s t  y e a r  t h e  p ro g re s s io n  o f t h e  S E Z  
d e v e lo p m e n t  h a s  in c lu d e d  fo r m a l s u r v e y in g , c le a r in g  o f 
la n d  a n d  p ro c e s s in g  p la n t  lo c a t io n  b o u n d a r ie s , u p d a t e d  
e n g in e e r in g  d e s ig n  a n d  la y o u t  o f a d m in is t r a t io n  a n d  
s u p p o r t  s it e  fa c ilit ie s  t o  b e  in c lu d e d  w it h in  t h e  S E Z .

“ T h e  N a c h u  G r a p h it e  P r o je c t  is  
s h o v e l r e a d y  w it h  a  S p e c ia l M in in g  
L ic e n c e  (S M L ) S M L  5 5 0 /2 0 1 5  o n  
t h e  p r o je c t  g r a n t e d  b y  t h e  M in is t r y  
o f  E n e r g y  a n d  M in e r a ls  (M E M ) o f  
T a n z a n ia  in  S e p t e m b e r  2 0 1 5 .”

O n  2 7  S e p t e m b e r  2 0 2 0 , t h e  C o m p a n y  a n n o u n c e d  t h a t  
it  h a d  e x e c u t e d  a n  a g re e m e n t  t o  s e c u re  $ 8 m  in  fu n d in g  
fro m  M id d le  E a s t  b a s e d  N e g m a  G ro u p . U n d e r  t h e  t e r m s  o f 
t h e  a g re e m e n t , N e g m a  c o u ld  p ro v id e  u p  t o  $ 8 m  o v e r  t h e  
c o u r s e  o f 1 2  m o n t h s  w it h  a  m a x im u m  m o n t h ly  s u b s c r ip t io n  
o f $ 7 0 0 ,0 0 0 . C o m p a n y  s h a re s  w e re  t o  is s u e d  a t  a n  8 %  
d is c o u n t  t o  t h e  p re v io u s  t e n -d a y  v o lu m e  w e ig h t e d  a v e r a g e  
p r ic e  (‘V W A P ”). U n d e r  t h e  a g re e m e n t , t h e  C o m p a n y  h a d  t h e  
fl e x ib ilit y  t o  c a ll t h e  m o n t h ly  a m o u n t s  a n d  c o u ld  c a n c e l t h e  
a g re e m e n t  a t  a n y  s t a g e  w it h o u t  p e n a lt y .

T h e  a g re e m e n t  p ro v id e s  a n  o p t io n  fo r  a n  a d d it io n a l 
s u b s c r ip t io n  a m o u n t  o f $ 4 m  o n  t h e  s a m e  t e r m s  fo llo w in g  
c o m p le t io n  o f t h e  in it ia l 1 2  m o n t h  t e r m .

T h e  fu n d s  w e re  u s e d  fo r  w o r k in g  c a p it a l a n d  a d v a n c in g  a ll 
p ro je c t s . F o u r  c a lls  w e re  re q u e s t e d  d u r in g  t h e  fi n a n c ia l y e a r, 
w it h  t h e  re le v a n t  d e t a ils  s u m m a r is e d  b e lo w :

Is s u e  D a t e

S h a r e s  Is s u e d

15/10/2019

21/11/2019

24/01/2020

22/04/2020

4,708,550

7,219,532

8,480,605

13,461,538

33,870,225

V W A P  P e r  
S h a r e  le s s  
8 %

A m o u n t  
R a s ie d

$0.1487

$0.0970

$0.1179

$0.0520

$700,000

$700,000

$1,000,000

$700,000

$0.0915

$3,100,000

A  c o m m it m e n t  fe e  o f $ 4 0 0 ,0 0 0  w a s  p a y a b le  b y  t h e  is s u e  
o f s h a re s  o v e r  t h e  fi r s t  fo u r  m o n t h ly  s u b s c r ip t io n s . O n  2 6  
N o v e m b e r  2 0 1 9 , t h e  C o m p a n y  is s u e d  4 m  u n lis t e d  o p t io n s  
in  t h e  C o m p a n y  t o  N e g m a  a t  a n  e x e rc is e  p r ic e  o f $ 0 .4 0  
p e r  s h a re  w it h  a n  e x p ir y  d a t e  o f 3 0  A p r il 2 0 2 1  a s  a  fu r t h e r  
c o n d it io n  o f t h e  a g re e m e n t .

A s  a t  3 0  J u n e  2 0 2 0 , t h e  C o m p a n y  h a d  1 0 m  u n lis t e d  o p t io n s  
o u t s t a n d in g  w it h  v a r y in g  e x p ir y  d a t e s  r a n g in g  fro m  3 0  A p r il 
2 0 2 1  t o  3 1  O c t o b e r  2 0 2 2 . T h e  o p t io n s  a ls o  h a v e  v a r y in g  
e x e rc is e  p r ic e s  r a n g in g  fro m  $ 0 .4 0  t o  $ 0 .7 0 .

O n  2  J u n e  2 0 2 0 , M a g n is  a n n o u n c e d  t h a t  it  h a d  re c e iv e d  
c o m m it m e n t s  fo r  t h e  p la c e m e n t  o f 2 0 ,0 0 0 ,0 0 0  fu lly  
p a id  o rd in a r y  s h a re s  a t  $ 0 .0 7 5  p e r  s h a re  t o  p ro fe s s io n a l, 
s o p h is t ic a t e d  a n d  in s t it u t io n a l in v e s t o r s  t o  r a is e  $ 1 .5 m  v ia  a  
p la c e m e n t  o f o rd in a r y  s h a re s . T h e  fu n d s  r a is e d  w e re  u s e d  t o  
s t re n g t h e n  t h e  b a la n c e  s h e e t  t o  a llo w  M a g n is  t o  c a p it a lis e  
o n  c u r re n t  a n d  fu t u re  g ro w t h  o p p o r t u n it ie s  in  t h e  b a t t e r y  
t e c h n o lo g y  s e c t o r  a n d  t o  fu n d  t h e  o n g o in g  in v e s t m e n t  in  
t h e  fu t u re  d e v e lo p m e n t  o f t h e  C o m p a n y ’s  1 0 0 %  o w n e d  
N a c h u  G r a p h it e  p ro je c t .

M A G N IS  E N E R G Y  T E C H N O L O G IE S   - A N N U A L  R E P O R T  2 0 2 0  

1 5

R e v ie w  o f O p e r a t io n s

D I R E C T O R  M O V E M E N T S

T h e  H o n . W a r w ic k  S m it h  A O  re s ig n e d  a s  a  N o n -E x e c u t iv e  
D ire c t o r  o f t h e  C o m p a n y  o n  1  J a n u a r y  2 0 2 0  a n d  w a s  
re p la c e d  b y  fe llo w  A L  C a p it a l re p re s e n t a t iv e , M r  S u b h a s  
D e G a m ia  o n  t h e  s a m e  d a t e . M r  D e G a m ia  s u b s e q u e n t ly  
re s ig n e d  o n  2 5  F e b r u a r y  2 0 2 0 .

M r  M a rc  V o g t s  re t ire d  a s  t h e  C o m p a n y ’s  M a n a g in g  D ire c t o r  
o n  3 1  J a n u a r y  2 0 2 0  a f t e r  h a v in g  b e e n  a p p o in t e d  t o  
t h a t  ro le  o n  1 5  N o v e m b e r  2 0 1 8 . M r  L e s lie  H o s k in g  w a s  
a p p o in t e d  a s  t h e  C o m p a n y ’s  In t e r im  M a n a g in g  D ire c t o r   
o n  t h e  s a m e  d a t e . H e  s u b s e q u e n t ly  re s ig n e d  o n  2 4  
F e b r u a r y  2 0 2 0 .

N o n -E x e c u t iv e  D ire c t o r  M r  J o h a n n  J a c o b s , w h o  h a d   
b e e n  a  D ire c t o r  o f t h e  C o m p a n y  fo r  1 0  y e a r s , re t ire d  o n  3 1  
M a y  2 0 2 0 .

T h e  B o a rd  w a s  re fre s h e d  w it h  t h e  a p p o in t m e n t  o f M r  J a m e s  
D a c k  t o  t h e  B o a rd  o n  1 5  J u n e  2 0 2 0  in  h is  c a p a c it y   
a s  E x e c u t iv e  D ire c t o r  a n d  w a s  a ls o  s o o n  jo in e d  o n  t h e  
B o a rd  o n  2 3  J u n e  2 0 2 0  b y  t h e  H o n  T ro y  G r a n t  a s  a  N o n -
E x e c u t iv e  D ire c t o r.

C O R P O R A T E  G O V E R N A N C E  
R E V I E W

T h e  C o m p a n y  a n n o u n c e d  o n  1 5  M a y  2 0 2 0  t h a t  it  
h a d  c o m p le t e d  a  re v ie w  o f it s  c o r p o r a t e  g o v e r n a n c e  
a r r a n g e m e n t s  a n d  p o lic ie s  in  o rd e r  t o  a lig n  t h e  C o m p a n y  
w it h  t h e  A S X  C o r p o r a t e  G o v e r n a n c e  C o u n c il’s  (C o u n c il’s ) 
re c o m m e n d e d  b e s t  p r a c t ic e s . T h e  re v ie w  t o o k  in t o  
c o n s id e r a t io n  c h a n g e s  t h a t  n e e d e d  t o  b e  m a d e  t o  t h e  
C o m p a n y ’s  c o r p o r a t e  g o v e r n a n c e  fr a m e w o r k  g e n e r a lly  
in  o rd e r  t o  t r a n s it io n  t o  t h e  C o u n c il’s  P r in c ip le s  a n d  
R e c o m m e n d a t io n s  p u b lis h e d  in  F e b r u a r y  2 0 1 9  (4 t h  E d it io n ) 
fo r  a p p lic a t io n  t o  A S X  lis t e d  c o m p a n ie s  fro m  1  J u ly  2 0 2 0 .

it s  b u s in e s s  a n d  g e n e r a l p e r fo r m a n c e  a n d  w ill a s s is t  in  
t h e  p ro t e c t io n  o f t h e  in t e re s t s  o f a ll s t a k e h o ld e r s  o f t h e  
C o m p a n y . T h e  B o a rd  h a s  a  c le a r  u n d e r s t a n d in g  t h a t  it  
is  re s p o n s ib le  fo r  t h e  C o m p a n y ’s  c o r p o r a t e  g o v e r n a n c e  
a n d  re c o g n is e s  t h e  im p o r t a n c e  o f t h is  in  e s t a b lis h in g  
a c c o u n t a b ilit ie s , m o n it o r in g  a n d  m a n a g in g  r is k s , g u id in g  
a n d  re g u la t in g  a c t iv it ie s  a n d  o p t im is in g  t h e  C o m p a n y ’s  
o v e r a ll p e r fo r m a n c e . T h e  B o a rd  a ls o  re c o g n is e s  t h e  n e e d  fo r  
c o n t in u o u s  im p ro v e m e n t  a n d  t o  re g u la r ly  re v ie w  it s  s y s t e m  
o f c o r p o r a t e  g o v e r n a n c e .

A s  p a r t  o f t h e  c o r p o r a t e  g o v e r n a n c e  re v ie w , t h e  B o a rd  
e s t a b lis h e d  t h re e  n e w  B o a rd  C o m m it t e e s , c o m p r is in g  t h e  
fo llo w in g : 

(i) 

(ii) 

(iii) 

  A u d it  &  R is k  C o m m it t e e  (re p la c in g  t h e  p re v io u s  
A u d it  C o m m it t e e );

 N o m in a t io n s  a n d  R e m u n e r a t io n  C o m m it t e e  
(re p la c in g  t h e  p re v io u s  R e m u n e r a t io n  
C o m m it t e e ); a n d

 H e a lt h , S a fe t y  a n d  S u s t a in a b ilit y  C o m m it t e e  
(re p la c in g  t h e  p re v io u s  S u s t a in a b ilit y  
C o m m it t e e ).

A ls o  p a r t  o f t h e  c o r p o r a t e  g o v e r n a n c e  re v ie w , w a s  
t h e  a p p ro v a l b y  t h e  B o a rd  o f t h e  fo llo w in g  B o a rd  a n d  
C o m m it t e e  C h a r t e r s  a n d  C o d e :

(i) 
(ii) 
(iii) 

(iv ) 
(v ) 

B o a rd  C h a r t e r ;
A u d it  &  R is k  C o m m it t e e  C h a r t e r ;
 N o m in a t io n s  a n d  R e m u n e r a t io n  C o m m it t e e  
C h a r t e r ; 
H e a lt h , S a fe t y  a n d  S u s t a in a b ilit y  C h a r t e r ; a n d
C o d e  o f C o n d u c t .

F in a lly , a s  a n  in t e g r a l p a r t  o f C o r p o r a t e  G o v e r n a n c e  R e v ie w  
w a s  t h e  B o a rd  a p p ro v a l o f t h e  C o m p a n y ’s  A n t i-B r ib e r y  &  
C o r r u p t io n  P o lic y  a n d  W h is t le b lo w e r  P o lic y . S u b s e q u e n t ly , 
t h e  B o a rd  s e p a r a t e ly  a p p ro v e d  t h e  C o m p a n y ’s  C o n t in u o u s  
D is c lo s u re  P o lic y  o n  5  A u g u s t  2 0 2 0  a n d  t h e  D iv e r s it y  P o lic y  
o n  1 0  S e p t e m b e r  2 0 2 0 . 

T h e  a p p ro a c h  t o  c o r p o r a t e  g o v e r n a n c e  w ill b e  m o re  t h a n  
m e re ly  o n e  o f c o m p lia n c e  a s  g o o d  c o r p o r a t e  g o v e r n a n c e  
is  e s s e n t ia l fo r  t h e  C o m p a n y ’s  lo n g -t e r m  s u s t a in a b ilit y  o f 

C o p ie s  o f t h e  a b o v e n a m e d  C o d e , C h a r t e r s  a n d  p o lic y  
d o c u m e n t s  a re  a c c e s s ib le  v ia  t h e  C o m p a n y ’s   
w e b s it e : w w w .m a g n is .c o m .a u

1 6  

A N N U A L  R E P O R T  2 0 2 0  - M A G N IS  E N E R G Y  T E C H N O L O G IE S

 
 
 
 
 
 
 
 
04A n n u a l F in a n c ia l R e p o r t

Y E A R  E N D E D  3 0  J U N E  2 0 2 0

M A G N IS  E N E R G Y  T E C H N O L O G IE S   - A N N U A L  R E P O R T  2 0 2 0  

1 7

05D ire c t o r s ’ R e p o r t

T h e  D ire c t o r s  p re s e n t  t h e ir  re p o r t , t o g e t h e r  w it h  t h e  fi n a n c ia l s t a t e m e n t s , o n  t h e  c o n s o lid a t e d  e n t it y  (re fe r re d  t o  h e re a f t e r  
a s  t h e  ‘c o n s o lid a t e d  e n t it y ’) c o n s is t in g  o f M a g n is  E n e rg y  Te c h n o lo g ie s  L im it e d  (re fe r re d  t o  h e re a f t e r  a s  t h e  ‘C o m p a n y ’ o r  
‘P a re n t  E n t it y ’) a n d  t h e  e n t it ie s  it  c o n t ro lle d  a t  t h e  e n d  o f, o r  d u r in g , t h e  y e a r  e n d e d  3 0  J u n e  2 0 2 0 .

D I R E C T O R S

T h e  fo llo w in g  p e r s o n s  w e re  D ire c t o r s  o f M a g n is  E n e rg y  Te c h n o lo g ie s  L im it e d  d u r in g  t h e  w h o le  o f t h e  fi n a n c ia l y e a r  a n d  u p  
t o  t h e  d a t e  o f t h is  re p o r t , u n le s s  o t h e r w is e  s t a t e d :

F r a n k  P o u l l a s  (E x e c u t i v e  C h a i r m a n )

A p p o in t e d  D ir e c t o r  1 0  S e p t e m b e r  2 0 1 0 , A p p o in t e d  
C h a ir m a n  2 9  A u g u s t  2 0 1 4 .

F r a n k . h a s  s p e n t  o v e r  t w o  d e c a d e s  w o r k in g  in  t h e  
t e c h n o lo g y , in v e s t m e n t  b a n k in g  a n d  e n g in e e r in g  
s e c t o r s . O v e r  t h e  la s t  1 4  y e a r s  F r a n k  h a s  b e e n  in v o lv e d  
w it h  a s s is t in g  a  n u m b e r  o f p u b lic  e n t it ie s  w it h  fu n d in g  
a n d  s t r a t e g ic  d ire c t io n  w h ic h  h a s  re s u lt e d  in  in c re a s e d  
s h a re h o ld e r  v a lu e .

F r a n k  is  c u r re n t ly  a  d ire c t o r  o f s e v e r a l c o m p a n ie s  a n d  
c o n t in u e s  t o  c o n s u lt  t o  p u b lic  c o m p a n ie s  in v o lv e d  o r  
lo o k in g  a t  e n t e r in g  t h e  L it h iu m -io n  b a t t e r y  m a t e r ia l s e c t o r.

C u r r e n t  a n d  f o r m e r  d ir e c t o r s h ip s  o f  o t h e r  lis t e d  
c o m p a n ie s  in  la s t  t h r e e  y e a r s :

N o n e

S p e c ia l r e s p o n s ib ilit ie s

F r a n k  is  a  m e m b e r  o f t h e  A u d it  a n d  R is k  C o m m it t e e  
a n d  a  m e m b e r  o f t h e  H e a lt h , S a fe t y  a n d  S u s t a in a b ilit y  
C o m m it t e e .

D i s t i n g u i s h e d  P r o f e s s o r  M i c h a e l  S t a n l e y  W h i t t i n g h a m  
(N o n -E x e c u t i v e  D i r e c t o r )

A p p o in t e d  D ir e c t o r  4  N o v e m b e r  2 0 1 6 .

P ro fe s s o r  S t a n le y  W h it t in g h a m  h a s  o v e r  fo u r  d e c a d e s  
o f e x p e r ie n c e  in  t h e  lit h iu m -io n  b a t t e r y  in d u s t r y  a n d  is  
b e s t  k n o w n  fo r  b e in g  a  p io n e e r  in  t h e  d e v e lo p m e n t  o f 
lit h iu m -io n  b a t t e r ie s  w h ic h  h a s  e a r n e d  h im  t h e  p re s t ig io u s  
a w a rd  o f t h e  2 0 1 9  N o b e l P r iz e  in  S c ie n c e . G o v e r n o r  o f N e w  
Yo r k  S t a t e , A n d re w  M . C u o m o , c o n g r a t u la t e d  P ro fe s s o r  
W h it t in g h a m  o n  b e c o m in g  a  N o b e l la u re a t e  a n d  s a id  
t h a t  “P ro fe s s o r  W h it t in g h a m ’s  w o r k  h a s  fa r -re a c h in g  
a p p lic a t io n s , in c lu d in g  h e lp in g  N e w  Yo r k  re a c h  o u r  g o a ls  
t o  re d u c e  c a r b o n  e m is s io n s  a n d  a c h ie v e  z e ro  c a r b o n  
e le c t r ic it y  b y  2 0 4 0 .” 

L ie u t e n a n t  G o v e r n o r  o f N e w  Yo r k  S t a t e , K a t h y  H o c h u l, 
s a id  “I h a d  t h e  p le a s u re  o f m e e t in g  w it h  t h e  “fa t h e r  o f t h e  
lit h iu m  b a t t e r y ” s e v e r a l t im e s  a t  B in g h a m t o n  U n iv e r s it y  t o  
d is c u s s  o u r  s t r id e s  in  b a t t e r y  s t o r a g e  fo r  o u r  e n e r g y  fu t u re . 
N e w  Yo r k e r s  a re  p ro u d  o f P ro fe s s o r  S t a n le y  W h it t in g h a m ’s  
w e ll-d e s e r v e d  re c o g n it io n  a n d  I c o n g r a t u la t e  h im  a n d   
h is  c o -re c ip ie n t s  fo r  b e in g  h o n o u re d  w it h  t h e  N o b e l P r iz e  
 in  C h e m is t r y .”

D u r in g  h is  illu s t r io u s  c a re e r  P ro fe s s o r  W h it t in g h a m  h a s  
h e a d e d  la rg e  p ro je c t s  fo r  t h e  U S  D e p a r t m e n t  o f E n e r g y , 
E x x o n  a n d  S c h lu m b e rg e r. H e  h a s  1 6  U S  p a t e n t s  a n d  h a s  
b e e n  in v o lv e d  in  w r it in g  o v e r  3 4 0  p ie c e s  o f s c ie n t ifi c  a n d  
e n g in e e r in g  lit e r a t u re .

C u r re n t ly , h e  is  a  D is t in g u is h e d  P ro fe s s o r  o f C h e m is t r y  
a n d  M a t e r ia ls  S c ie n c e  a n d  E n g in e e r in g  a t  B in g h a m t o n  
U n iv e r s it y  w h ic h  is  p a r t  o f t h e  S t a t e  U n iv e r s it y  o f N e w  Yo r k . 
P ro fe s s o r  W h it t in g h a m  is  a ls o  D ire c t o r  o f t h e  N o r t h E a s t  
C e n t e r  fo r  C h e m ic a l E n e r g y  S t o r a g e  (N E C C E S ), w h ic h  is  a n  
e ff o r t  b e in g  le d  b y  B in g h a m t o n  U n iv e r s it y , a n d  in c lu d e s  
a s  p a r t n e r s  R u t g e r s  U n iv e r s it y , S t o n y  B ro o k  U n iv e r s it y , 
C a m b r id g e  U n iv e r s it y , M IT , U n iv e r s it y  o f M ic h ig a n , 
U n iv e r s it y  o f C a lifo r n ia  a t  S a n t a  B a r b a r a  a n d  U n iv e r s it y  o f 
C a lifo r n ia  a t  S a n  D ie g o . H e  w a s  e le c t e d  a  m e m b e r  o f t h e  
N a t io n a l A c a d e m y  o f E n g in e e r in g  in  2 0 1 8 . 

P ro fe s s o r  W h it t in g h a m  h o ld s  a  B A , a n  M A  a n d  a  D P h il fro m  
O x fo rd  U n iv e r s it y .

C u r r e n t  a n d  f o r m e r  d ir e c t o r s h ip s  o f  o t h e r  lis t e d  
c o m p a n ie s  in  la s t  t h r e e  y e a r s :

N o n e

S p e c ia l r e s p o n s ib ilit ie s

M e m b e r  o f t h e  A u d it  &  R is k  C o m m it t e e  a n d  t h e  
N o m in a t io n s  &  R e m u n e r a t io n  C o m m it t e e . 

1 8  

A N N U A L  R E P O R T  2 0 2 0  - M A G N IS  E N E R G Y  T E C H N O L O G IE S

 
P e t e r  T s e g a s  (N o n -E x e c u t i v e  D i r e c t o r )

M r  J a m e s  D a c k  (E x e c u t i v e  D i r e c t o r )

A p p o in t e d  D ir e c t o r  1 6  J u n e  2 0 1 5 .

A p p o in t e d  D ir e c t o r  1 5  J u n e  2 0 2 0 .

P e t e r  h a s  o v e r  2 0  y e a r s  o f e x p e r ie n c e  in  T a n z a n ia  w h e re  
h e ’s  b e e n  a  re s id e n t  fo r  t h e  p a s t  1 5  y e a r s . H e  h a s  w o r k e d  
t o  e n g a g e  b o t h  t h e  p r iv a t e  a n d  g o v e r n m e n t  s e c t o r s  o n  a  
n u m b e r  o f p ro je c t s  a n d  w a s  M a n a g in g  D ire c t o r  o f T a n c o a l 
E n e rg y  L t d  w h ic h  h e  s u c c e s s fu lly  t o o k  fro m  a n  e x p lo r a t io n  
c o m p a n y , t o  a  J V  w it h  t h e  T a n z a n ia n  g o v e r n m e n t , a n d  t h e n  
in t o  p ro d u c t io n .

C u r re n t  a n d  fo r m e r  d ire c t o r s h ip s  o f o t h e r  lis t e d  c o m p a n ie s  
in  la s t  t h re e  y e a r s :

A d a v a le  R e s o u rc e s  L im it e d  (A S X : A D D )

S p e c ia l r e s p o n s ib ilit ie s

C h a ir m a n  o f t h e  H e a lt h , S a fe t y  a n d  S u s t a in a b ilit y  
C o m m it t e e .

J a m e s  h a s  h a d  a n  illu s t r io u s  b u s in e s s  c a re e r  in  g o v e r n m e n t , 
p r iv a t e  a n d  p u b lic  e n t e r p r is e s . H e  e x p e r ie n c e d  a  
s p e c t a c u la r  r is e  in  t h e  p u b lic  s e c t o r, w h e re  h e  s t a r t e d  h is  
c a re e r  a s  a  p o r t e r  a t  S t  V in c e n t ’s  H o s p it a l, b e fo re  a d v a n c in g  
h is  w a y  t o  b e in g  re s p o n s ib le  fo r  c o -o rd in a t in g  t h e  e n t ire  
N S W  P u b lic  H o s p it a l P a y ro ll S y s t e m  in  t h e  In d u s t r ia l 
R e la t io n s  D iv is io n  o f t h e  D e p a r t m e n t  o f H e a lt h . In  t h e  la t e  
1 9 8 0 ’s , h e  s t a r t e d  in  t h e  re a l e s t a t e  in d u s t r y  a s  a  fo u n d in g  
p a r t n e r  in  o n e  o f t h e  m o s t  s u c c e s s fu l a n d  re c o g n is e d  re a l 
e s t a t e  a g e n c y  b r a n d s  in  A u s t r a lia . 

F o llo w in g  h is  s u c c e s s , J a m e s  le f t  t h e  re a l e s t a t e  in d u s t r y  in  
2 0 1 4  t o  p u r s u e  o t h e r  v e n t u re s , a n d  b e g a n  h is  o w n  p r iv a t e  
in v e s t m e n t  c o m p a n y , w h e re  h e  h a s  t a k e n  a  la r g e  p o s it io n  
in  m a n y  e n t it ie s  in c lu d in g  p u b lic  c o m p a n ie s  lis t e d  lo c a lly  
a n d  o v e r s e a s . J a m e s  a ls o  s it s  o n  t h e  b o a rd  o f d ire c t o r s  fo r  
t h e  P o lic e  C it iz e n s  Yo u t h  C lu b s  N S W  (P C Y C ), a n  o rg a n is a t io n  
t h a t  h e  h a s  b e e n  in v o lv e d  w it h  fo r  m o re  t h a n  4 0  y e a r s . 
D u r in g  h is  t im e  w it h  t h e  P C Y C , J a m e s  h a s  h a d  m a n y  ro le s  
w h ic h  h a v e  h e lp e d  t h e  c o m m u n it y  a n d  t h o s e  in  n e e d .

C u r r e n t  a n d  f o r m e r  d ir e c t o r s h ip s  o f  o t h e r  lis t e d  
c o m p a n ie s  in  la s t  t h r e e  y e a r s :

N o n e .

S p e c ia l r e s p o n s ib ilit ie s

M e m b e r  o f t h e  N o m in a t io n s  &  R e m u n e r a t io n  C o m m it t e e

M A G N IS  E N E R G Y  T E C H N O L O G IE S   - A N N U A L  R E P O R T  2 0 2 0  

1 9

D ire c t o r s ’ R e p o r t

H o n . T r o y  G r a n t  (N o n -E x e c u t i v e  D i r e c t o r )

H o n . W a r w i c k  S m i t h  A O  L L B  (N o n - E x e c u t i v e  D i r e c t o r )

A p p o in t e d  D ir e c t o r  2 3  J u n e  2 0 2 0

A p p o in t e d  7  S e p t e m b e r  2 0 1 8 . R e s ig n e d  1  J a n u a r y  2 0 2 0 .

T ro y  h a s  b u ilt  a  p h e n o m e n a l 3 0  y e a r  c a re e r  o f 
d is t in g u is h e d , d e c o r a t e d  a n d  a c c o m p lis h e d  p u b lic  s e r v ic e  
t o  t h e  p e o p le  o f N e w  S o u t h  W a le s  a c ro s s  g o v e r n m e n t , 
la w  e n fo rc e m e n t , e m e rg e n c y  s e r v ic e s , s o c ia l ju s t ic e , 
c o m m u n it y , a n d  c h a r it a b le  e n d e a v o u r s . 

T ro y  b e c a m e  t h e  S t a t e ’s  y o u n g e s t  p e r s o n  t o  h o ld  t h e  
p o s it io n  a s  D e p u t y  P re m ie r  o f N e w  S o u t h  W a le s  in  2 0 1 4 , 
jo in in g  t h e n  P re m ie r  o f N e w  S o u t h  W a le s , M ik e  B a ird , 
in  t r a n s fo r m in g  t h e  N S W  E c o n o m y  a n d  in  d ire c t in g  
re c o rd  in v e s t m e n t  in t o  N S W  re g io n a l a re a s . D u r in g  h is  
P a r lia m e n t a r y  c a re e r, h e  s e r v e d  a c ro s s  s e v e r a l M in is t e r ia l 
p o r t fo lio s  d r a w in g  re c o rd  in v e s t m e n t  a n d  c h a n g e  in  P o lic e , 
E m e rg e n c y  S e r v ic e s , J u s t ic e , H o s p it a lit y , G a m in g  &  R a c in g , 
a n d  T h e  A r t s . In  a d d it io n , h e  a ls o  s e r v e d  a s  t h e  M in is t e r  fo r  
T r a d e  &  In v e s t m e n t , R e g io n a l In fr a s t r u c t u re  &  S e r v ic e s , &  
To u r is m  a n d  M a jo r  E v e n t s .

F o llo w in g  a  d is t in g u is h e d  c a re e r  in  p u b lic  s e r v ic e , T ro y  
e s t a b lis h e d  a  s u c c e s s fu l c o n s u lt in g  &  a d v is o r y  fi r m  in  2 0 1 9 , 
w h e re  h e  is  c u r re n t ly  c o n t r a c t e d  a s  a  S t r a t e g ic  A d v is o r  
t o  a  b ig  fo u r  a u d it in g  fi r m , a  w o r ld  le a d in g  t e c h n o lo g y  
c o m p a n y , a n d  a d d in g  t o  a n  a lre a d y  im p re s s iv e  lis t  o f c lie n t s , 
h e ’s  b e e n  s o u g h t  t o  le a d  re s o u rc in g  p ro je c t s  fo r  a  n u m b e r  
o f S t a t e  G o v e r n m e n t s  a c ro s s  A u s t r a lia . T ro y  is  c u r re n t ly  t h e  
C h a ir m a n  o f R a c in g  N S W ’s  In t e g r it y  A s s u r a n c e  C o m m it t e e  
a n d  D e p u t y  C h a ir m a n  o f In t e r n a t io n a l R u g b y  L e a g u e  L t d . 
H e  h a s  re c e n t ly  b e e n  a p p o in t e d  a s  a  C o n jo in t  P ro fe s s o r  
o f P r a c t ic e  in  P u b lic  A d m in is t r a t io n  w it h  t h e  U n iv e r s it y  o f 
N e w c a s t le . 

C u r r e n t  a n d  f o r m e r  d ir e c t o r s h ip s  o f  o t h e r  lis t e d  
c o m p a n ie s  in  t h e  la s t  t h r e e  y e a r s

N o n e .

S p e c ia l r e s p o n s ib ilit ie s

C h a ir m a n  o f t h e  N o m in a t io n s  a n d  R e m u n e r a t io n  
C o m m it t e e , C h a ir m a n  o f t h e  A u d it  &  R is k  C o m m it t e e  a n d  a  
M e m b e r  o f t h e  H e a lt h , S a fe t y  a n d  S u s t a in a b ilit y  C o m m it t e e . 

W a r w ic k  h a s  e x t e n s iv e  p u b lic  p o lic y  a n d  c o m m e rc ia l 
a c u m e n  a n d  a  w e a lt h  o f e x p e r ie n c e  fro m  n a t io n a l a n d  
in t e r n a t io n a l b u s in e s s  re la t io n s  in  a  v a r ie t y  o f in d u s t r ie s  
in c lu d in g  p ro p e r t y , fi n a n c ia l s e r v ic e s , n a t u r a l re s o u rc e s , 
e n e r g y , t r a n s p o r t a t io n , h e a v y  m a c h in e r y  a n d  e q u ip m e n t , 
h e a lt h , m e d ia , t e c h n o lo g y  a n d  e n t e r t a in m e n t . 

H e  is  C h a ir m a n  A d v is o r y  B o a rd  - A u s t r a lia n  C a p it a l E q u it y , 
h o ld e r s  o f in t e re s t s  in  S e v e n  G ro u p  H o ld in g s  o f w h ic h  h e  
is  a  B o a rd  D ire c t o r, C o a t e s  H ire , W e s T r a c , a n d  C a t e r p illa r  
in d u s t r ia l s e r v ic e s  a n d  e q u ip m e n t  in  W e s t e r n  A u s t r a lia  a n d  
N e w  S o u t h  W a le s . H e  is  E x e c u t iv e  C h a ir m a n  o f A L  C a p it a l 
a n d  A q u a la n d  A u s t r a lia  a n d  D ire c t o r  o f G lo b a l S t r a t e g y , 
S h a n g h a i S h e n g lo n g  In v e s t m e n t  G ro u p  L im it e d . H e  is  a  
B o a rd  D ire c t o r  o f E s t ia  H e a lt h  L t d . H e  is  t h e  C h a ir m a n  o f 
O rd  M in n e t t  a n d  A IM  In v e s t m e n t  M a n a g e m e n t .

W it h  t h e  B u s in e s s  C o u n c il o f A u s t r a lia , W a r w ic k  is  C h a ir m a n  
o f G lo b a l E n g a g e m e n t , C h a ir m a n  o f t h e  T r a d e  a n d  
In v e s t m e n t  G ro u p  a n d  C h a ir  o f t h e  C h in a  L e a d e r s h ip  G ro u p . 
H e  h a s  s e r v e d  a s  C h a ir m a n  o f t h e  A u s t r a lia -C h in a  C o u n c il 
fo r  o v e r  8  y e a r s  a n d  w a s  t h e  in a u g u r a l C h a ir  o f t h e  n e w ly  
fo r m e d  N a t io n a l F o u n d a t io n  fo r  A u s t r a lia -C h in a  R e la t io n s . 
In  a d d it io n , h e  is  c u r re n t  G lo b a l T r u s t e e  o f t h e  A s ia  S o c ie t y  
a n d  C h a ir m a n  E m e r it u s  o f t h e  A s ia  S o c ie t y  in  A u s t r a lia .

D u r in g  h is  P a r lia m e n t a r y  c a re e r  s p a n n in g  1 5  y e a r s , M r. 
S m it h  h e ld  m a n y  p o r t fo lio s  a s  a  F e d e r a l G o v e r n m e n t  
M in is t e r  in c lu d in g  M in is t e r  o f S p o r t , Te r r it o r ie s  a n d  
L o c a l g o v e r n m e n t  a lo n g  w it h  M in is t e r  A s s is t in g  t h e  
P r im e  M in is t e r  o n  t h e  O ly m p ic  G a m e s  in  S y d n e y  a n d  
M in is t e r  o f F a m ily  S e r v ic e s . V a r io u s  S h a d o w  M in is t e r  
ro le s  in c lu d e d  C o m m u n ic a t io n s , P r iv a t is a t io n , A b o r ig in a l 
A ff a ir s  a n d  S c ie n c e  a n d  E n e rg y  a n d  L e a d e r  o f t h e  H o u s e  o f 
R e p re s e n t a t iv e s .

P re v io u s ly , W a r w ic k  w a s  a n  E x e c u t iv e  D ire c t o r  w it h  t h e  
M a c q u a r ie  B a n k  G ro u p  (A S X : M Q G ), C h a ir m a n  N e w  S o u t h  
W a le s  a n d  A u s t r a lia n  C a p it a l Te r r it o r y  a n d  fo r m e r  S e n io r  
M a n a g in g  D ire c t o r  fo r  t h e  A N Z  B a n k in g  G ro u p  L im it e d  
(A S X : A N Z ), C h a ir m a n  o f E *T R A D E  L im it e d , C h a ir m a n  o f 
t h e  A u s t r a lia n  S p o r t s  C o m m is s io n  a n d  A u s t r a lia ’s  fi r s t  
Te le c o m m u n ic a t io n s  O m b u d s m a n . H e  h a s  re c e iv e d  a  
C e n t e n a r y  M e d a l a n d  h a s  t w ic e  b e e n  a w a rd e d  a n  O rd e r  o f 
A u s t r a lia .

C u r r e n t  a n d  f o r m e r  d ir e c t o r s h ip s  o f  o t h e r  lis t e d  
c o m p a n ie s  in  la s t  t h r e e  y e a r s :

S e v e n  G ro u p  H o ld in g s  (A S X : S V W ); E s t ia  H e a lt h  L im it e d  
(A S X : E H E )

S p e c ia l r e s p o n s ib ilit ie s

N o n e

2 0  

A N N U A L  R E P O R T  2 0 2 0  - M A G N IS  E N E R G Y  T E C H N O L O G IE S

M a r c  V o g t s  (M a n a g i n g  D i r e c t o r )

L e s l i e  H o s k i n g  (I n t e r i m  M a n a g i n g  D i r e c t o r )

A p p o in t e d  D ir e c t o r  2  N o v e m b e r  2 0 1 6 . A p p o in t e d  
M a n a g in g  D ir e c t o r  1 5  N o v e m b e r  2 0 1 8 . R e t ir e d  3 1  
J a n u a r y  2 0 2 0 .

A p p o in t e d  D ir e c t o r  5  M a r c h  2 0 1 9 . A p p o in t e d  I n t e r im  
M a n a g in g  D ir e c t o r  3 1  J a n u a r y  2 0 2 0 . R e s ig n e d  2 1  
F e b r u a r y  2 0 2 0 .

M a rc  is  a  p ro je c t  e x e c u t iv e  w it h  o v e r  fo u r  d e c a d e s  o f 
e x p e r ie n c e  in  t h e  m in in g  in d u s t r y  a n d  o v e r  3 0  y e a r s  o f 
e x p e r ie n c e  a s  a  S e n io r  E x e c u t iv e  in  m a jo r  p ro je c t s  in  S o u t h  
A fr ic a , M a d a g a s c a r, A u s t r a lia , C a n a d a , C h ile , P a p u a  N e w  
G u in e a  a n d  U S A .

M a rc  h a s  h e ld  P ro je c t  E x e c u t iv e  D ire c t o r  ro le s  fo r  t h e  lik e s  
o f B H P  B illit o n  a n d  R io  T in t o  d u r in g  h is  c a re e r. In  re c e n t  
ro le s , M a rc  w a s  P ro je c t  D ire c t o r  fo r  t h e  Q M M  P ro je c t  
in  M a d a g a s c a r  fo r  R io  T in t o , V ic e  P re s id e n t  fo r  P ro je c t  
M a n a g e m e n t  fo r  B H P  B illit o n  a n d  V ic e  P re s id e n t  fo r  a ll 
U r a n iu m  P ro je c t s  in c lu d in g  O ly m p ic  D a m  fo r  B H P  B illit o n .

P r io r  t o  a s s u m in g  t h e  M a n a g in g  D ire c t o r  ro le  a t  M a g n is , 
M a rc  w a s  t h e  fo u n d a t io n a l C h ie f E x e c u t iv e  O ffi c e r  o f t h e  
J o h n  G r ill C e n t re  fo r  P ro je c t  L e a d e r s h ip  a t  t h e  U n iv e r s it y  
o f S y d n e y , a  w o r ld  le a d in g  p ro je c t  le a d e r s h ip  e x e c u t iv e  
e d u c a t io n  fo r  v a lu e  c re a t io n  a n d  re a lis a t io n  in  la r g e -s c a le  
p ro je c t s .

M a rc  h o ld s  a  B a c h e lo r  o f S c ie n c e  in  Q u a n t it y  S u r v e y in g  
(B S c  Q S ) fro m  t h e  U n iv e r s it y  o f C a p e  To w n , S o u t h  A fr ic a . 
A s  p a r t  o f h is  c a re e r  a d v a n c e m e n t  a t  R io  T in t o  a n d  B H P, 
h e  c o m p le t e d  n u m e ro u s  in t e r n a l e x e c u t iv e  le a d e r s h ip  
p ro g r a m s .

C u r r e n t  a n d  f o r m e r  d ir e c t o r s h ip s  o f  o t h e r  lis t e d  
c o m p a n ie s  in  la s t  t h r e e  y e a r s :

N o n e

S p e c ia l r e s p o n s ib ilit ie s

F o r m e r  R e m u n e r a t io n  C o m m it t e e  M e m b e r. 

L e s  h a s  a  lo n g  a n d  d is t in g u is h e d  c a re e r  w h ic h  s p a n s  o v e r  
fo u r  d e c a d e s  in  A u s t r a lia n  b u s in e s s  w it h  a  s t ro n g  fo c u s  in  
t h e  e n e r g y  a n d  t h e  g lo b a l fu t u re s  in d u s t r ie s . C u r re n t ly , h e  
is  s e r v in g  a s  a n  In d e p e n d e n t  N o n -E x e c u t iv e  D ire c t o r  o f 
A G L  E n e r g y  L im it e d  (A S X : A G L ) a n d  is  a n  A d ju n c t  P ro fe s s o r  
o f t h e  U n iv e r s it y  o f S y d n e y  J o h n  G r ill C e n t re  fo r  P ro je c t  
L e a d e r s h ip .

P re v io u s ly  L e s  w a s  t h e  C h ie f E x e c u t iv e  O ffi c e r  a n d  
M a n a g in g  D ire c t o r  o f t h e  S y d n e y  F u t u re s  E x c h a n g e , 
C h a ir m a n  o f A d e la id e  B r ig h t o n  L im it e d  (A S X : A B C ), 
C h ie f E x e c u t iv e  O ffi c e r  o f A x is s  A u s t r a lia  a n  A u s t r a lia n  
G o v e r n m e n t  in w a rd  in v e s t m e n t  a g e n c y  u s e d  t o  p ro m o t e  
A u s t r a lia  a s  a  g lo b a l fi n a n c ia l s e r v ic e  a n d  a  D ire c t o r  a t  
t h e  A u s t r a lia n  G o v e r n m e n t ’s  In d u s t r y  R e s e a rc h  a n d  
D e v e lo p m e n t  B o a rd .

In  t h e  d o m e s t ic  e n e r g y  in d u s t r y , L e s  h a s  s e r v e d  a s  t h e  
C h ie f E x e c u t iv e  O ffi c e r  a n d  M a n a g in g  D ire c t o r  a t  N a t io n a l 
E le c t r ic it y  M a r k e t  M a n a g e m e n t  C o m p a n y  (N E M M C O ), 
D ire c t o r  o f t h e  A u s t r a lia n  E n e rg y  M a r k e t  O p e r a t o r  (A E M O ), 
T h e  C a r b o n  M a r k e t  In s t it u t e  L im it e d  a n d  In n o v a t io n  
A u s t r a lia  P t y  L t d .

C u r r e n t  a n d  f o r m e r  d ir e c t o r s h ip s  o f  o t h e r  lis t e d  
c o m p a n ie s  in  la s t  t h r e e  y e a r s

A G L  E n e r g y  L im it e d  (A S X : A G L ); A d e la id e  B r ig h t o n  L im it e d  
(A S X : A B C )

S p e c ia l r e s p o n s ib ilit ie s

F o r m e r  S u s t a in a b ilit y  C o m m it t e e  M e m b e r.

M A G N IS  E N E R G Y  T E C H N O L O G IE S   - A N N U A L  R E P O R T  2 0 2 0  

2 1

S u b h a s  D e G a m i a  [N o n -E x e c u t i v e  D i r e c t o r ]

J o h a n n  C  J o o s t e -J a c o b s  (N o n -E x e c u t i v e  D i r e c t o r )

A p p o in t e d  D ir e c t o r  1  J a n u a r y  2 0 2 0 . R e s ig n e d  2 5  
F e b r u a r y  2 0 2 0 .

S u b h a s  is  a  s e n io r  fi n a n c ia l s e r v ic e s  e x e c u t iv e  w it h  
e x t e n s iv e  in t e r n a t io n a l e x p e r ie n c e  a n d  a  c o n s is t e n t  re c o rd  
o f v a lu e  c re a t io n  a c ro s s  d iv e r s e  ro le s  in  e s t a b lis h e d  a n d  
e m e rg in g  m a r k e t s . 

S u b h a s ’ le a d e r s h ip  e x p e r ie n c e  h a s  in c lu d e d  s e v e r a l s e n io r  
m a n a g e m e n t  ro le s  w it h  A N Z  B a n k in g  G ro u p  L im it e d  a c ro s s  
A u s t r a lia  a n d  A s ia , in c lu d in g  C o u n t r y  C E O  fo r  A N Z  in  In d ia , 
a n d  a s  E x e c u t iv e  D ire c t o r  In t e r n a t io n a l B a n k in g  b a s e d  in  
A u s t r a lia .

M r  D e G a m ia  h o ld s  a n  E x e c u t iv e  M B A  fro m  M e lb o u r n e  
B u s in e s s  S c h o o l, (M t  E liz a  C a m p u s ), a  G r a d u a t e  D ip lo m a  
in  B a n k in g  fro m  M a s s e y  U n iv e r s it y , N e w  Z e a la n d , a n d  a  
B a c h e lo r  o f C o m m e rc e  &  A d m in is t r a t io n  (w it h  H o n o u r s ) 
fro m  V ic t o r ia  U n iv e r s it y  o f W e llin g t o n , N e w  Z e a la n d . H e  
is  a  m e m b e r  o f C h a r t e re d  A c c o u n t a n t s  A u s t r a lia  a n d  N e w  
Z e a la n d , a  F e llo w  o f F IN S IA , a n d  a  G r a d u a t e  M e m b e r  o f t h e  
A u s t r a lia n  In s t it u t e  o f C o m p a n y  D ire c t o r s  (G A IC D ), 

C u r r e n t  a n d  f o r m e r  d ir e c t o r s h ip s  o f  o t h e r  lis t e d  
c o m p a n ie s  in  la s t  t h r e e  y e a r s

N o n e .

S p e c ia l r e s p o n s ib ilit ie s

N o n e .

A p p o in t e d  2 7  A u g u s t  2 0 1 0 . R e t ir e d  3 1  M a y  2 0 2 0 .

J o h a n n  h a s  m o re  t h a n  3 5  y e a r s  o f e x p e r ie n c e  in  t h e  
re s o u rc e  s e c t o r  w h e re  h e  h a s  m a n a g e d  e s t a b lis h e d  
c o m p a n ie s , a c q u is it io n s , e x p a n s io n s  a n d  s t a r t -u p  m in in g  
o p e r a t io n s  in  A u s t r a lia , S o u t h  A fr ic a  a n d  In d o n e s ia . H e  
is  c u r re n t ly  E x e c u t iv e  C h a ir m a n  o f K in g  Is la n d  S c h e e lit e  
L im it e d  a n d  a  N o n -E x e c u t iv e  D ire c t o r  o f E r in b a r  L im it e d  
(d e lis t e d  in  J a n u a r y  2 0 1 6  a n d  p re v io u s ly  k n o w n  a s  
A u s t r a lia n  Z irc o n  N L ).
J o h a n n  h o ld s  a  B a c h e lo r  o f A c c o u n t in g  fro m  t h e  
U n iv e r s it y  o f N a t a l in  S o u t h  A fr ic a , a n d  a  M a s t e r  o f 
B u s in e s s  L e a d e r s h ip  fro m  t h e  U n iv e r s it y  o f S o u t h  A fr ic a , 
(c o r re s p o n d e n c e  e q u iv a le n t  o f a n  M B A ).

C u r r e n t  a n d  f o r m e r  d ir e c t o r s h ip s  o f  o t h e r  lis t e d  
c o m p a n ie s  in  la s t  t h r e e  y e a r s :

K in g  Is la n d  S c h e e lit e  L im it e d  (A S X : K IS ) 

S p e c ia l r e s p o n s ib ilit ie s :

F o r m e r  C h a ir m a n  o f t h e  A u d it  C o m m it t e e  a n d  a  fo r m e r  
m e m b e r  o f t h e  R e m u n e r a t io n  C o m m it t e e .

2 2  

A N N U A L  R E P O R T  2 0 2 0  - M A G N IS  E N E R G Y  T E C H N O L O G IE S

 
C O M P A N Y  S E C R E T A R Y

F r a n k  G i o r d a n o  

A p p o in t e d  C o m p a n y  S e c r e t a r y  a n d  L e g a l C o u n s e l 1 7  J u ly  
2 0 2 0 .

B . E c . L L .B . L L .M . M . T a x a t io n  (U n iv e r s it y  o f S y d n e y ), C PA , 
F e llo w  o f t h e  G o v e r n a n c e  In s t it u t e  o f A u s t r a lia , h o ld e r  o f a n  
A u s t r a lia n  L e g a l P r a c t is in g  C e r t ifi c a t e  (L a w  S o c ie t y  o f N S W ), 
m e m b e r  o f t h e  A u s t r a lia n  In s t it u t e  o f C o m p a n y  D ire c t o r s  
a n d  m e m b e r  o f t h e  A s s o c ia t io n  o f C o r p o r a t e  C o u n s e l, 
A u s t r a lia . 

F r a n k  h a s  o v e r  3 0  y e a r s ’ e x p e r ie n c e  in  s e n io r  c o r p o r a t e  
le g a l, g o v e r n a n c e  a n d  c o m p lia n c e  m a n a g e m e n t  
ro le s  in c lu d in g  w it h  A u s t r a lia n  In d u s t r y  D e v e lo p m e n t  
C o r p o r a t io n /A ID C  L t d , In s u r a n c e  A u s t r a lia  G ro u p  L t d , 
B a b c o c k  &  B ro w n , A m b e r  In fr a s t r u c t u re  G ro u p , A u s t r a lia , 
a n d  re c e n t ly  h e ld  a  c o n t r a c t  ro le  a s  A s s is t a n t  C o m p a n y  
S e c re t a r y  a n d  L e g a l C o u n s e l w it h  M o r t g a g e  C h o ic e  L im it e d , 
a n  A S X  lis t e d  p u b lic  c o m p a n y .

D o u g  R i c h a r d s o n  

B . C o m  (E c o n o m ic s  a n d  F in a n c e ), G r a d  D ip . A p p lie d  F in a n c e  
a n d  In v e s t m e n t

A p p o in t e d  C o m p a n y  S e c r e t a r y  1 4  J a n u a r y  2 0 1 5 . 
R e s ig n e d  1 7  J u ly  2 0 2 0 .

D o u g  R ic h a rd s o n  h a s  o v e r  2 5  y e a r s ’ e x p e r ie n c e  in  t h e  
fi n a n c ia l s e r v ic e s  a n d  re s o u rc e s  s e c t o r s . H is  e x p e r ie n c e  h a s  
in c lu d e d  in v e s t m e n t  re s e a rc h , a n a ly t ic s  a n d  c lie n t  a d v is in g  
fo r  v a r io u s  o r g a n is a t io n s  in c lu d in g  G IO  A s s e t  M a n a g e m e n t , 
A u s t r a lia n  P r u d e n t ia l R e g u la t io n  A u t h o r it y , S u n c o r p , a n d  
P h ilo  C a p it a l A d v is e r s .

D I R E C T O R S ’ I N T E R E S T S

A s  a t  t h e  d a t e  o f t h is  re p o r t , t h e  in t e re s t s  (d ire c t ly  o r  in d ire c t ly  h e ld ) o f t h e  D ire c t o r s  in  t h e  s h a re s  a n d  o p t io n s  o f t h e  
C o m p a n y  w e re :

D ir e c t o r

F r a n k  P o u lla s

P ro f. M . S t a n le y  W h it t in g h a m

P e t e r  T s e g a s

J a m e s  D a c k

H o n . T ro y  G r a n t

L is t e d  O r d in a r y  S h a r e s

U n lis t e d  O p t io n s  o v e r  O r d in a r y  S h a r e s

1 5 ,9 8 3 ,9 2 6

-

7 7 0 ,0 0 0

-

-

1 ,0 0 0 ,0 0 0

1 ,0 0 0 ,0 0 0

1 ,0 0 0 ,0 0 0

-

-

M A G N IS  E N E R G Y  T E C H N O L O G IE S   - A N N U A L  R E P O R T  2 0 2 0  

2 3

D ire c t o r s ’ R e p o r t

N A T U R E  O F  O P E R A T I O N S  A N D  P R I N C I P A L  A C T I V I T I E S  

T h e  G ro u p  h a s  a  m u lt i-s t r a t e g y  b u s in e s s  o f lit h iu m -io n  b a t t e r y  t e c h n o lo g y  m a n u fa c t u r in g  in  t h e  U S A  a n d  A u s t r a lia  
c o m b in e d  w it h  p re -m in e  d e v e lo p m e n t  o f it s  N a c h u  G r a p h it e  P ro je c t  (N G P ) in  T a n z a n ia . T h e  G ro u p  is  c o m m it t e d  t o  
m in im u m  e x p e n d it u re  re q u ire m e n t s  in  re la t io n  t o  it s  N a c h u  t e n e m e n t s .

M a g n is  c o n t in u e s  t o  a d v a n c e  it s  m u lt i-s t r a t e g y  b u s in e s s  p la n  o f d e v e lo p in g :

> 

 A s  a  s t r a t e g ic  p a r t n e r, t h e  r a p id  a d v a n c e m e n t  o f t w o  (2 ) p ro p o s e d  lit h iu m -io n  b a t t e r y  (‘L IB ’) g ig a -fa c t o r ie s  in  t h e  U S A  
a n d  A u s t r a lia . 

> 

 T h e  m in in g  a n d  p ro c e s s in g  o f h ig h  p u r it y  n a t u r a l fl a k e  g r a p h it e  fro m  t h e  G ro u p ’s  1 0 0 %  o w n e d  N G P. 

D I V I D E N D S

N o  d iv id e n d s  h a v e  b e e n  p a id  d u r in g  t h e  y e a r  (2 0 1 9 : $ N IL ). T h e  D ire c t o r s  d o  n o t  re c o m m e n d  t h e  p a y m e n t  o f a  d iv id e n d  fo r  
t h is  fi n a n c ia l y e a r.

L I K E LY  D E V E L O P M E N T S  A N D  E X P E C T E D  R E S U LT S  O F  O P E R A T I O N S

T h e  D ire c t o r s  a re  n o t  a w a re  o f a n y  d e v e lo p m e n t s , o t h e r  t h a n  t h e  o n -g o in g  c h a lle n g e s  p o s e d  b y  t h e  C O V ID -1 9  g lo b a l 
p a n d e m ic , t h a t  m ig h t  h a v e  a  s ig n ifi c a n t  e ff e c t  o n  t h e  o p e r a t io n s  o f t h e  G ro u p  in  s u b s e q u e n t  fi n a n c ia l y e a r s  t h a t  a re  n o t  
a lre a d y  d is c lo s e d  in  t h is  re p o r t .

C O R P O R A T E  I N F O R M A T I O N

M a g n is  E n e rg y  Te c h n o lo g ie s  L im it e d  is  a  C o m p a n y  lim it e d  b y  s h a re s  t h a t  is  in c o r p o r a t e d  a n d  d o m ic ile d  in  A u s t r a lia . T h e  
s h a re s  a re  lis t e d  o n  t h e  A u s t r a lia n  S e c u r it ie s  E x c h a n g e  (“A S X ”) u n d e r  t h e  A S X  c o d e  M N S .

U n lis t e d  o p t io n s  is s u e d  t o  D ire c t o r s  b e n e fi c ia lly  v ia  t h e  C o m p a n y ’s  e m p lo y e e  o p t io n  t r u s t  s c h e m e  a re  in c lu d e d  in  t h e  
o p t io n  a g g re g a t e .

D e t a ils  o f s h a re s  o r  in t e re s t s  is s u e d  d u r in g  a n d  a f t e r  t h e  e n d  o f t h e  fi n a n c ia l y e a r  a s  a  re s u lt  o f e x e rc is e  o f a n  o p t io n  a re :

Is s u in g  e n t it y

M a g n is  E n e rg y  
Te c h n o lo g ie s  L im it e d

E M P L O Y E E S

N u m b e r  o f  s h a r e s  
is s u e d

C la s s  o f  s h a r e s

T o t a l a m o u n t  p a id  f o r  
s h a r e s

A m o u n t  u n p a id  o n  
s h a r e s

0

O rd in a r y

0

$ n il

M a g n is  E n e rg y  Te c h n o lo g ie s  L im it e d  h a d  6  e m p lo y e e s  a s  a t  3 0  J u n e  2 0 2 0  (2 0 1 9 : 6  e m p lo y e e s ).

C a t e g o r y  o f  e m p lo y e e

A ll E m p lo y e e s  a n d  B o a rd

S e n io r  E x e c u t iv e s

B o a rd

T o t a l

9

5

5

G e n d e r

M a le

8

5

5

U r a n e x  T a n z a n ia  L im it e d  h a d  1 0  fu ll t im e  e m p lo y e e s  a s  a t  3 0  J u n e  2 0 2 0 . (2 0 1 9 : 1 1  e m p lo y e e s )

C a t e g o r y  o f  e m p lo y e e

A ll E m p lo y e e s  

T o t a l

1 0

M a le

7

G e n d e r

F e m a le

1

0

0

F e m a le

3

2 4  

A N N U A L  R E P O R T  2 0 2 0  - M A G N IS  E N E R G Y  T E C H N O L O G IE S

C O R P O R A T E  

D ir e c t o r  M o v e m e n t s  d u r in g  t h e  y e a r

T h e  H o n . W a r w ic k  S m it h  re s ig n e d  fro m  h is  p o s it io n  o f N o n -E x e c u t iv e  D ire c t o r  o n  1  J a n u a r y  2 0 2 0 .
M r  M a rc  V o g t s  re t ire d  fro m  h is  p o s it io n  o f M a n a g in g  D ire c t o r  o n  3 1  J a n u a r y  2 0 2 0 .
M r  L e s lie  H o s k in g  re s ig n e d  fro m  h is  p o s it io n  o f In t e r im  M a n a g in g  D ire c t o r  o n  2 1  F e b r u a r y  2 0 2 0 .
M r  S u b h a s  D e G a m ia  re s ig n e d  fro m  h is  p o s it io n  o f N o n -E x e c u t iv e  D ire c t o r  o n  2 5  F e b r u a r y  2 0 2 0 .
M r  J o h a n n  J o o s t e -J a c o b s  re t ire d  fro m  h is  p o s it io n  o f N o n -E x e c u t iv e  D ire c t o r  o n  3 1  M a y  2 0 2 0 .
M r  J a m e s  D a c k  w a s  a p p o in t e d  a s  E x e c u t iv e  D ire c t o r  o n  1 5  J u n e  2 0 2 0 .
T h e  H o n . T ro y  G r a n t  w a s  a p p o in t e d  a s  N o n -E x e c u t iv e  D ire c t o r  o n  2 3  J u n e  2 0 2 0 .

P la c e m e n t s

O n  2 7  S e p t e m b e r  2 0 1 9 , M a g n is  a n n o u n c e d  it  h a d  s e c u re d  $ 8  m illio n  in  fu n d in g  fro m  M id d le  E a s t  b a s e d  N e g m a  G ro u p  L t d  
(“N e g m a ”), w h ic h  h a d  a g re e d  t o  s u b s c r ib e  fo r  s h a re s  o v e r  t h e  c o u r s e  o f 1 2  m o n t h s  w it h  a  m a x im u m  m o n t h ly  s u b s c r ip t io n  
o f $ 7 0 0 ,0 0 0 . T h e  p r ic e  o f t h e  s h a re s  is s u e d  w o u ld  b e  a t  a n  8 %  d is c o u n t  t o  t h e  p re v io u s  t e n  d a y  V o lu m e  W e ig h t e d  A v e r a g e  
P r ic e  (“V W A P ”). T h e  C o m p a n y  h a d  t h e  fl e x ib ilit y  t o  c a ll t h e  m o n t h ly  a m o u n t s  a n d  c o u ld  t e r m in a t e  t h e  S u b s c r ip t io n  
A g re e m e n t  (“A g re e m e n t ”) a t  a n y  t im e , w it h o u t  a  p e n a lt y . A n  o p t io n  fo r  a n  a d d it io n a l $ 4  m illio n  s u b s c r ip t io n  w a s  o n  
o ff e r  a t  t h e  s a m e  t e r m s . T h e  fu n d s  r a is e d  w o u ld  b e  u s e d  fo r  w o r k in g  c a p it a l a n d  a d v a n c in g  a ll p ro je c t s . F o u r  c a lls  w e re  
re q u e s t e d  d u r in g  t h e  2 0 2 0  fi n a n c ia l y e a r, w it h  t h e  d e t a ils  s u m m a r is e d  b e lo w :

Is s u e  D a t e

1 5 /1 0 /2 0 1 9

2 1 /1 1 /2 0 1 9

2 4 /0 1 /2 0 2 0

2 2 /0 4 /2 0 2 0

S h a r e s  Is s u e d

V W A P  p e r  s h a r e  le s s  8 %

A m o u n t  R a is e d

 4 ,7 0 8 ,5 5 0  

 7 ,2 1 9 ,5 3 2  

 8 ,4 8 0 ,6 0 5  

 1 3 ,4 6 1 ,5 3 8  

 3 3 ,8 7 0 ,2 2 5  

$ 0 .1 6 9 9

$ 0 .1 1 0 8

$ 0 .1 4 1 5

$ 0 .0 5 2 0

$ 0 .1 0 3 3

$ 8 0 0 ,0 0 0

$ 8 0 0 ,0 0 0

$ 1 ,2 0 0 ,0 0 0

$ 7 0 0 ,0 0 0

$ 5 ,0 0 0 ,0 0 0

O n  2 7  N o v e m b e r  2 0 1 9 , M a g n is  a n n o u n c e d  it  h a d  is s u e d  a  fu r t h e r  4 ,0 0 0 ,0 0 0  U n lis t e d  S h a re  O p t io n s  t o  N e g m a  a s  p a r t  o f 
t h e  A g re e m e n t  a n n o u n c e d  o n  2 7  S e p t e m b e r  2 0 1 9 , a t  a n  e x e rc is e  p r ic e  o f $ 0 .4 0  p e r  s h a re  o p t io n  w it h  a n  e x p ir y  d a t e  o f 3 0  
A p r il 2 0 2 1 .

O n  2  J u n e  2 0 2 0 , M a g n is  a n n o u n c e d  it  h a d  re c e iv e d  fi r m  c o m m it m e n t s  fo r  t h e  p la c e m e n t  o f 2 0 ,0 0 0 ,0 0 0  fu lly  p a id  o rd in a r y  
s h a re s  a t  $ 0 .0 7 5  p e r  s h a re  t o  p ro fe s s io n a l, s o p h is t ic a t e d , a n d  in s t it u t io n a l in v e s t o r s  t o  r a is e  A $ 1 .5  m illio n . T h e  fu n d s  r a is e d  
w e re  u s e d  t o  s t re n g t h e n  t h e  b a la n c e  s h e e t  t o  a llo w  M a g n is  t o  c a p it a lis e  o n  c u r re n t  a n d  fu t u re  g ro w t h  o p p o r t u n it ie s  in  t h e  
b a t t e r y  t e c h n o lo g y  s e c t o r  a n d  t o  fu n d  t h e  o n g o in g  in v e s t m e n t  in  t h e  fu t u re  d e v e lo p m e n t  o f t h e  C o m p a n y ’s  1 0 0 %  o w n e d  
N a c h u  G r a p h it e  P ro je c t .

E x e r c is e  o f  L is t e d  O p t io n s  

T h e re  w e re  n o  lis t e d  o p t io n s  t h a t  w e re  e x e rc is e d . N o  o p t io n s  a re  c u r re n t ly  lis t e d  o n  t h e  m a r k e t .

E x e r c is e  o f  U n lis t e d  O p t io n s  

T h e re  w e re  N il u n lis t e d  o p t io n s  e x e rc is e d  d u r in g  t h e  p e r io d . 
T h e re  w e re  N il p ro c e e d s  re c e iv e d  fro m  t h e  e x e rc is in g  o f u n lis t e d  o p t io n s . 

M A G N IS  E N E R G Y  T E C H N O L O G IE S   - A N N U A L  R E P O R T  2 0 2 0  

2 5

 
D ire c t o r s ’ R e p o r t

O P E R A T I N G  R E S U LT S  F O R  T H E  Y E A R

T h e  G ro u p  in c u r re d  a n  o p e r a t in g  lo s s  a f t e r  t a x  o f $ 7 ,3 7 8 ,6 0 1  (2 0 1 9 : $ 5 ,5 4 9 ,5 5 3 ). R e fe r  t o  N o t e  1  o f t h e  fi n a n c ia l s t a t e m e n t s  
fo r  a c c o u n t in g  p o lic ie s  u s e d . S u m m a r is e d  s e g m e n t  o p e r a t in g  re s u lt s  a re  a s  fo llo w s :

 2 0 2 0

L it h iu m -io n  B a t t e r y  in v e s t m e n t s

G r a p h it e  e x p lo r a t io n  a n d  d e v e lo p m e n t

In t e r s e g m e n t  e lim in a t io n

In c o m e  a n d  lo s s e s  b e fo re  t a x

2 0 2 0

I n c o m e   
$

1 6 7 ,7 2 0  

6 8 4 ,1 6 0  

 - 

8 5 1 ,8 8 0  

R e s u lt s   
$

-

(7 ,3 7 8 ,6 0 1 )

 - 

(7 ,3 7 8 ,6 0 1 )

E x p lo r a t io n  c o s t s  fo r  t h e  y e a r  a m o u n t e d  t o  $ 1 ,0 1 3 ,0 3 4  (2 0 1 9 : $ 1 ,4 7 9 ,1 9 0 ), w it h  t h e  G ro u p  h a v in g  c o m m e n c e d  a  n u m b e r  o f 
p re -d e v e lo p m e n t  in it ia t iv e s  s u c h  a s  s t a r t in g  in it ia l la n d  c le a r in g  a n d  ro a d  w o r k s  a lo n g  w it h  re lo c a t io n s . T h e  G ro u p  h a s  a ls o  
c o n t in u e d  t o  in c re a s e  it s  s t r a t e g ic  in v e s t m e n t s  in  t h e  b u s in e s s e s  o f lit h iu m -io n  b a t t e r y  t e c h n o lo g y  m a n u fa c t u r in g  in  t h e  
U S A  a n d  A u s t r a lia , v ia  a  g lo b a l c o n s o r t iu m  Im p e r iu m 3  N e w  Yo r k  In c  (‘iM 3 N Y ’).

R E V I E W  O F  F I N A N C I A L  P O S I T I O N

L iq u id it y  a n d  C a p it a l R e s o u r c e s

T h e  s t a t e m e n t  o f c a s h  fl o w s  s h o w s  a  d e c re a s e  in  c a s h  a n d  c a s h  e q u iv a le n t s  fo r  t h e  y e a r  e n d e d  3 0  J u n e  2 0 2 0  o f $ 1 ,1 1 0 ,8 9 6  
(2 0 1 9  in c re a s e : $ 3 0 5 ,0 7 7 ). 

D u r in g  t h e  y e a r, t h e  G ro u p  r a is e d  $ 5 ,0 0 0 ,0 0 0  (2 0 1 9 : % 1 1 ,1 0 0 ,0 0 0 ) b e fo re  c o s t s  v ia  s h a re  p la c e m e n t s  a n d  $ N il p ro c e e d s  
fro m  o p t io n s  e x e rc is e d , (2 0 1 9 : $ 3 0 0 ,0 0 0 ). 

A t  y e a r  e n d  t h e  G ro u p  h a d  liq u id  fu n d s  o f $ 7 1 9 ,6 1 5  (2 0 1 9 : $ 1 ,8 2 9 ,8 1 7 ) a v a ila b le  fo r  fu t u re  o p e r a t io n a l u s e  a n d  h a s  n o  
b o r ro w in g s  (2 0 1 9 : $ N il).

S u b s e q u e n t  e v e n t  - C a p it a l r a is in g

O n  4  S e p t e m b e r  2 0 2 0 , M a g n is  a n n o u n c e d  it  h a d  re c e iv e d  fi r m  c o m m it m e n t s  fo r  a  p la c e m e n t  o f 4 5 ,0 0 0 ,0 0 0  fu lly  p a id  
o rd in a r y  s h a re s  a t  $ 0 .1 7  p e r  s h a re  t o  p ro fe s s io n a l, s o p h is t ic a t e d , a n d  in s t it u t io n a l in v e s t o r s  t o  r a is e  A $ 7 .6 5  m illio n . T h e  
fu n d s  r a is e d  w e re  u s e d  t o  s t re n g t h e n  t h e  b a la n c e  s h e e t  t o  a llo w  M a g n is  t o  c a p it a lis e  o n  c u r re n t  a n d  fu t u re  g ro w t h  
o p p o r t u n it ie s  in  t h e  b a t t e r y  t e c h n o lo g y  s e c t o r  a n d  t o  fu n d  t h e  o n g o in g  in v e s t m e n t  in  t h e  fu t u re  d e v e lo p m e n t  o f t h e  
C o m p a n y ’s  1 0 0 %  o w n e d  N a c h u  G r a p h it e  P ro je c t .

O n  8  S e p t e m b e r  2 0 2 0 , M a g n is  a n n o u n c e d  it  h a d  t e r m in a t e d  t h e  N e g m a  S u b s c r ip t io n  A g re e m e n t  fo llo w in g  t h e  C o m p a n y ’s  
s u c c e s s fu l c a p it a l r a is in g  a n n o u n c e d  o n  4  S e p t e m b e r  2 0 2 0 .

S h a r e s  a n d  O p t io n s  is s u e d  d u r in g  t h e  y e a r

D u r in g  t h e  y e a r  e n d e d  3 0  J u n e  2 0 2 0 , t h e  C o m p a n y  r a is e d  e q u it y  fu n d s  fro m  a s  fo llo w s : 

> 

> 

> 

> 

> 

2 6  

 $ 3 ,5 0 0 ,0 0 0  (2 0 1 9 : $ N il) fro m  t h e  N e g m a  S u b s c r ip t io n  A g re e m e n t  fo r  3 3 ,8 7 0 ,2 2 5  (2 0 1 9 : N IL ) o rd in a r y  fu lly  p a id  s h a re s .

 $ 1 ,5 0 0 ,0 0 0  (2 0 1 9 : $ 1 1 ,1 0 0 ,0 0 0 ) fro m  a  s h a re  p la c e m e n t  o f 2 0 ,0 0 0 ,0 0 0  (2 0 1 9 : 3 0 ,0 0 0 ,1 0 0 ) o rd in a r y  fu lly  p a id  s h a re s .

 T h e re  w e re  N il lis t e d  o p t io n s  e x e rc is e d  d u r in g  t h e  p e r io d . T h e re  n o  o p t io n s  a re  c u r re n t ly  lis t e d  o n  t h e  m a r k e t .

 T h e re  w e re  N il u n lis t e d  o p t io n s  e x e rc is e d  d u r in g  t h e  p e r io d

 1 2 ,1 0 0 ,0 0 0  u n lis t e d  o p t io n s  (2 0 1 9 : 1 ,0 0 0 ,0 0 0 ) o n  v a r y in g  t e r m s  a n d  c o n d it io n s  w e re  is s u e d  d u r in g  t h e  y e a r.

A N N U A L  R E P O R T  2 0 2 0  - M A G N IS  E N E R G Y  T E C H N O L O G IE S

C a p it a l E x p e n d it u r e

C a p it a l e x p e n d it u re  o n  p la n t  a n d  e q u ip m e n t  d u r in g  t h e  y e a r  w a s  $ 2 ,1 7 6  (2 0 1 9 : $ 1 2 ,4 6 1 ). 

G R O U P  P E R F O R M A N C E

A n n u a l N e t  I n c o m e

C o n s o lid a t e d  lo s s   
a f t e r  t a x  ($ )

S h a r e h o ld e r  R e t u r n s

S h a re  p r ic e  a t   
fi n a n c ia l y e a r  e n d  ($ )

B a s ic  lo s s  p e r  s h a re  (c e n t s )

D ilu t e d  lo s s   
p e r  s h a re  (c e n t s )

R I S K  M A N A G E M E N T

2 0 2 0

7 ,3 7 8 ,6 0 1

2 0 1 9

5 ,5 4 9 ,5 5 3

2 0 1 8

5 ,4 1 7 ,8 8 5

2 0 1 7

9 ,7 5 6 ,4 3 4

2 0 1 6

1 2 ,0 2 6 ,7 8 1

2 0 2 0

0 .0 8

1 .1 1

1 .1 1

2 0 1 9

0 .1 9

0 .9 2

0 .9 2

2 0 1 8

0 .3 8

0 .9 7

0 .9 7

2 0 1 7

0 .5 1 5

2 .0 9

2 .0 9

2 0 1 6

0 .9 7 5

3 .4 2

3 .4 2

T h e  B o a rd  is  re s p o n s ib le  fo r  e n s u r in g  t h a t  r is k s  a re  id e n t ifi e d  o n  a  t im e ly  b a s is  a n d  t h a t  t h e  G ro u p ’s  a c t iv it ie s  m a n a g e  t h e  
r is k s  id e n t ifi e d  b y  t h e  B o a rd .

T h e  G ro u p  b e lie v e s  t h a t  it  is  c r u c ia l fo r  a ll B o a rd  m e m b e r s  t o  b e  a  p a r t  o f t h is  p ro c e s s . T h e  B o a rd  h a s  n o t  e s t a b lis h e d  
a  s e p a r a t e  r is k  m a n a g e m e n t  c o m m it t e e  b u t  re v ie w e d  t h e  m a jo r  r is k s  t o  t h e  b u s in e s s  w it h  m a n a g e m e n t  a n d  h a s  t h e  
fo llo w in g  p ro c e s s e s  in  p la c e  t o  m o n it o r  it :

> 

 T h e  B o a rd  h a s  u n d e r t a k e n  s t r a t e g ic  re v ie w s  o f it s  a c t iv it ie s  a n d  c o n v e y e d  t o  m a n a g e m e n t  a n d  s h a re h o ld e r s  it s  
o b je c t iv e s .

> 

 T h e  B o a rd  a p p ro v e d  o p e r a t in g  b u d g e t s  a n d  a t  it s  m e e t in g s , m o n it o r s  a c t u a l e x p e n d it u re  t o  b u d g e t .

> 

> 

  T h e  B o a rd  re v ie w s  s o v e re ig n , o p e r a t in g  a n d  e n v iro n m e n t a l r is k s  w it h  m a n a g e m e n t  a n d  fro m  t im e  t o  t im e  e x t e r n a l 
c o n s u lt a n t s  p ro v id e  re p o r t s  o n  it s  p r a c t ic e s .

  T h e  B o a rd  a s s e s s e s  p o lit ic a l a n d  s o v e re ig n  r is k s  re la t in g  t o  it s  in t e r n a t io n a l a s s e t s  b y  m o n it o r in g  lo c a l m e d ia  a n d  
p o lit ic s . G ro u p  re p re s e n t a t iv e s  lia is e  w it h  a ll le v e ls  o f G o v e r n m e n t  t o  m a in t a in  a w a re n e s s  a s  t o  m a t t e r s  t h a t  m a y  a ff e c t  
t h e  C o m p a n y . T h e  C o m p a n y  h a s  a  re s id e n t  B o a rd  m e m b e r  in  A fr ic a  t o  a s s is t  w it h  t h e  m o n it o r in g  o f s o v e re ig n  r is k  fo r  it s  
T a n z a n ia n  a s s e t s .

T h e  D ire c t o r s  h a v e  id e n t ifi e d  r is k s  a s s o c ia t e d  w it h  o u r  b u s in e s s . In h e re n t ly , e v a lu a t io n , p re -d e v e lo p m e n t , t e c h n o lo g ic a l 
a d v a n c e m e n t s , a n d  c o m p e t it io n  is  a  r is k y  u n d e r t a k in g  t h a t  o f t e n  p ro v id e s  s u b s t a n t ia l re w a rd s  t o  in v e s t o r s  w h e n e v e r  
s u c c e s s  is  a c h ie v e d . T h is  is  t h e  fo re m o s t  r is k  t h a t  t h e  B o a rd  e n d e a v o u r s  t o  m it ig a t e  t h ro u g h  it s  s t r a t e g ic  id e n t ifi c a t io n  
o f p o t e n t ia l m in e r a lis a t io n  t a rg e t s  a n d  o v e r s ig h t  o f m a n a g e m e n t  s u b s e q u e n t ly  c o n d u c t in g  t h e  re s p e c t iv e  e x p lo r a t io n  
p ro g r a m m e s . T h e  B o a rd  is  v e r y  a w a re  o f t h e  fi n a n c ia l r is k s  a s s o c ia t e d  w it h  t h e  e x p lo r a t io n  a n d  m in in g  in d u s t r y  a n d  t h e  
t e c h n o lo g y  r is k s  a s s o c ia t e d  w it h  t h e  b a t t e r y  a n d  e n e r g y  s t o r a g e  in d u s t r y .  T h e  G ro u p  p re s e n t ly  a c c e s s e s  fu n d s  t h ro u g h  
t h e  c a p it a l m a r k e t s  in  o rd e r  t o  fu n d  it s  fu t u re  b u s in e s s  n e e d s . T h e  c a p it a l m a r k e t s  a re  s u b je c t  t o  p re v a ilin g  e c o n o m ic  
c o n d it io n s , s o  t h e  D ire c t o r s  a re  a t t u n e d  t o  r a is in g  fu n d s  t o  m e e t  fu t u re  n e e d s  w h e n  c irc u m s t a n c e s  p e r m it .

T h e  B o a rd  a n n o u n c e d  o n  1 5  M a y  2 0 2 0  t h a t , in t e r  a lia , it s  A u d it  C o m m it t e e  w a s  re -c o n s t it u t e d  a s  t h e  A u d it  a n d  R is k  
C o m m it t e e .

S I G N I F I C A N T  C H A N G E S  I N  T H E  S T A T E  O F  A F F A I R S

T h e  C o m p a n y  is  s t r a t e g ic a lly  m a n a g in g  t h e  c h a lle n g e s  p o s e d  b y  t h e  o n -g o in g  C O V ID -1 9  g lo b a l p a n d e m ic .

E N V I R O N M E N T A L  R E G U L A T I O N  A N D  P E R F O R M A N C E

T h e  G ro u p ’s  e x p lo r a t io n  a c t iv it ie s  in  T a n z a n ia  a re  s u b je c t  t o  e n v iro n m e n t a l re g u la t io n s  a n d  g u id e lin e s  o p e r a t in g  in  t h e  
lic e n c e d  a re a s . 

M A G N IS  E N E R G Y  T E C H N O L O G IE S   - A N N U A L  R E P O R T  2 0 2 0  

2 7

D ire c t o r s ’ R e p o r t

F a ilu re  t o  m e e t  e n v iro n m e n t a l c o n d it io n s  a t t a c h in g  t o  t h e  g ro u p ’s  m in e r a l t e n e m e n t s  c o u ld  le a d  t o  fo r fe it u re  o f t h e  
t e n e m e n t s . 

N o  e n v iro n m e n t a l b re a c h e s  h a v e  o c c u r re d  o r  h a v e  b e e n  n o t ifi e d  b y  a n y  g o v e r n m e n t  a g e n c ie s  d u r in g  t h e  y e a r  e n d e d  3 0  
J u n e  2 0 2 0 .

T h e  N e w  Yo r k  lit h iu m -io n  b a t t e r y  p la n t  s c h e d u le d  fo r  o p e r a t io n  in  e a r ly  2 0 2 1  c a le n d a r  y e a r  w ill b e  s u b je c t  t o  
E n v iro n m e n t a l a n d  P la n n in g  R e g u la t io n s  fro m  v a r io u s  g o v e r n m e n t  a u t h o r it ie s , t h a t  w ill b e  s t r ic t ly  m a n a g e d  a n d  a d h e re d  
t o  b y  t h e  c o n s o r t iu m  m e m b e r s  o f iM 3 N Y.

D I R E C T O R S  M E E T I N G S

T h e  n u m b e r  o f D ire c t o r s  m e e t in g s  h e ld  (in c lu d in g  m e e t in g s  o f c o m m it t e e s  o f D ire c t o r s ) a n d  t h e  n u m b e r  o f m e e t in g s  
a t t e n d e d  b y  e a c h  o f t h e  D ire c t o r s  o f t h e  C o m p a n y  d u r in g  t h e  fi n a n c ia l y e a r  a re :

D ir e c t o r s  M e e t in g

A u d it  C o m m it t e e

N o m in a t io n s  &   
R e m u n e r a t io n  
C o m m it t e e

S u s t a in a b ilit y  
C o m m it t e e

N u m b e r  o f  m e e t in g s  
a t t e n d e d :

J  C  J o o s t e -J a c o b s

F  P o u lla s

P  T s e g a s

L  H o s k in g

M  V o g t s

W  S m it h

M S  W h it t in g h a m

S  D e G a m ia

J  D a c k

T  G r a n t

 A

9

9

4

7

7

6

9

1

-

-

B

9

9

9

7

7

6

9

1

-

-

A

2

2

1

*

*

*

*

*

*

*

B

2

2

2

*

*

*

*

*

*

*

A

1

1

*

*

-

-

*

*

*

*

B

1

1

*

*

-

-

*

*

*

*

A

*

-

-

-

*

-

*

*

*

*

B

*

-

-

-

*

-

*

*

*

*

N o te s  
A  
B  
* 

N u m b e r o f m e e tin g s  a tte n d e d .
N u m b e r o f m e e tin g s  h e ld  d u rin g  th e  y e a r w h ils t th e  d ire c to r h e ld  o ffi c e . 
N o t  a  m e m b e r o f th e  re le v a n t c o m m itte e .

T h e  A u d it C o m m it te e  c o m p ris e d  J  C  J o o s te -J a c o b s  (C h a irm a n ), F  P o u lla s  a n d  P  Ts e g a s . T h e  N o m in a tio n s  &  R e m u n e ra tio n  C o m m itte e  c o m p ris e d  
F  P o u lla s  (C h a irm a n ), J  C  J o o s te -J a c o b s  a n d  M  V o g ts . T h e  S u s ta in a b ilit y  C o m m itte e  c o m p ris e d  o f P. Ts e g a s  (C h a irm a n ), F. P o u lla s  a n d  L .H o s k in g . 
O n  1 5  M a y  2 0 2 0 , th e  C o m p a n y  a n n o u n c e d  th a t, a s  p a r t o f its  C o rp o ra te  G o v e rn a n c e  R e v ie w , th e  A u d it C o m m itte e  w a s  re n a m e d  a s  th e  A u d it a n d  
R is k  C o m m itte e , th e  R e m u n e ra tio n  C o m m itte e  w a s  re n a m e d  th e  N o m in a tio n s  a n d  R e m u n e ra tio n  C o m m itte e  a n d  th e  S u s ta in a b ilit y  C o m m itte e  
w a s  re n a m e d  th e  H e a lth , S a fe t y  a n d  S u s ta in a b ilit y  C o m m itte e . N e w  C o m m itte e  C h a r te rs  w e re  s im ila rly  im p le m e n te d . 

R E M U N E R A T I O N  R E P O R T  (A U D I T E D )

T h is  re p o r t  o u t lin e s  t h e  re m u n e r a t io n  a r r a n g e m e n t s  in  p la c e  fo r  D ire c t o r s  a n d  e x e c u t iv e s . 

R E M U N E R A T I O N  P O L I C Y

T h e  B o a rd  re c o g n is e s  t h a t  t h e  p e r fo r m a n c e  o f t h e  G ro u p  d e p e n d s  u p o n  t h e  q u a lit y  o f it s  D ire c t o r s  a n d  e x e c u t iv e s . To  
a c h ie v e  it s  o p e r a t in g  a n d  fi n a n c ia l a c t iv it ie s  t h e  G ro u p  m u s t  a t t r a c t , m o t iv a t e , a n d  re t a in  h ig h ly  s k ille d  D ire c t o r s  a n d  
e x e c u t iv e s .

T h e  G ro u p ’s  p o lic y  fo r  d e t e r m in in g  t h e  n a t u re  a n d  n u m b e r  o f e m o lu m e n t s  o f B o a rd  m e m b e r s  a n d  e x e c u t iv e s  o f t h e  
C o m p a n y  is  a s s e s s e d  a n n u a lly  a t  t h e  e n d  o f e a c h  c a le n d a r  y e a r  a n d  a re  s e t  b y  re fe re n c e  t o  t h e  m in e r a l e x p lo r a t io n  in d u s t r y  
m a r k e t  p la c e . T h e  R e m u n e r a t io n  C o m m it t e e  s u b m it s  it s  re c o m m e n d a t io n  t o  t h e  B o a rd  fo r  it s  c o n s id e r a t io n .

A ll re m u n e r a t io n  p a id  t o  D ire c t o r s  a n d  e x e c u t iv e s  is  v a lu e d  a t  t h e  c o s t  t o  t h e  G ro u p  a n d  e x p e n s e d .

T h e  B o a rd  p o lic y  is  t o  re m u n e r a t e  N o n -E x e c u t iv e  D ire c t o r s  a t  m a r k e t  r a t e s  fo r  c o m p a r a b le  c o m p a n ie s  fo r  t im e , 

2 8  

A N N U A L  R E P O R T  2 0 2 0  - M A G N IS  E N E R G Y  T E C H N O L O G IE S

c o m m it m e n t  a n d  re s p o n s ib ilit ie s  b a s e d  o n  re c o m m e n d a t io n s  fro m  t h e  R e m u n e r a t io n  C o m m it t e e . T h e  B o a rd  d e t e r m in e s  
p a y m e n t s  t o  t h e  N o n -E x e c u t iv e  D ire c t o r s  a n d  re v ie w s  t h e ir  re m u n e r a t io n  a n n u a lly , b a s e d  o n  m a r k e t  p r a c t ic e , d u t ie s ,  
a n d  a c c o u n t a b ilit y . 

T h e  c u r re n t  m a x im u m  a g g re g a t e  o f N o n -E x e c u t iv e  D ire c t o r s  fe e s  p a y a b le  is  $ 6 5 0 ,0 0 0 ; h a v in g  b e e n  a p p ro v e d  b y  
s h a re h o ld e r s  a t  t h e  C o m p a n y ’s  A n n u a l G e n e r a l M e e t in g  h e ld  o n  1 7  N o v e m b e r  2 0 1 7  a n d  t h is  re p re s e n t e d  t h e  fi r s t  in c re a s e  
t o  t h e  m a x im u m  a g g re g a t e  a m o u n t  in  9  y e a r s . P re s e n t ly , N o n -E x e c u t iv e  D ire c t o r s  re c e iv e  a n n u a l fe e s  o f b e t w e e n  $ 6 5 ,0 0 0  
t o  $ 7 0 ,0 0 0  a n d  t h e  N o n -E x e c u t iv e  C h a ir m a n  $ 1 2 0 ,0 0 0 . A n  a d d it io n a l $ 5 ,0 0 0  p e r  a n n u m  is  p a id  t o  D ire c t o r s  w h o  a c t  a s  
C h a ir m a n  o f C o m m it t e e s . S u p e r a n n u a t io n  is  b a s e d  o n  e a c h  in d iv id u a l D ire c t o r ’s  s e r v ic e  a g re e m e n t .

D I R E C T O R  A N D  O T H E R  E X E C U T I V E S  D E T A I L S  

L is t e d  o n  p a g e s  1 8 -2 2  o f t h e  D ire c t o r s ’ R e p o r t  a re  p e r s o n s  w h o  a c t e d  a s  a  d ire c t o r  o f t h e  C o m p a n y  d u r in g  o r  s in c e  t h e  e n d  
o f t h e  fi n a n c ia l y e a r.

F o r  t h e  p u r p o s e s  o f t h is  re p o r t , K e y  M a n a g e m e n t  P e r s o n n e l (K M P ) o f t h e  G ro u p  a re  t h o s e  p e r s o n s  h a v in g  a u t h o r it y  
a n d  re s p o n s ib ilit y  fo r  p la n n in g  d ire c t in g  a n d  c o n t ro llin g  t h e  m a jo r  a c t iv it ie s  o f t h e  C o m p a n y  a n d  t h e  G ro u p , d ire c t ly  o r  
in d ire c t ly , in c lu d in g  a n y  D ire c t o r  (w h e t h e r  e x e c u t iv e  o r  o t h e r w is e ) o f t h e  C o m p a n y , a n d  s e n io r  o r  k e y  m a n a g e m e n t . In  
a d d it io n  t o  t h e  D ire c t o r s , t h e  fo llo w in g  w e re  K M P  d u r in g  t h e  fi n a n c ia l y e a r : 

D r. F r a n k  H o u llis  - C h ie f E x e c u t iv e  O ffi c e r  (t o  2 1  A u g u s t  2 0 2 0 )

P E R F O R M A N C E  B A S E D  R E M U N E R A T I O N  

T h e  G ro u p  c u r re n t ly  h a s  n o  p e r fo r m a n c e -b a s e d  re m u n e r a t io n  c o m p o n e n t  b u ilt  in t o  K M P  re m u n e r a t io n  p a c k a g e s . B o n u s e s  
m a y  b e  p a y a b le  a t  t h e  B o a rd ’s  d is c re t io n  fo llo w in g  t h e  a n n u a l p e r fo r m a n c e  re v ie w . T h e  C o m p a n y  d o e s  n o t  h a v e  p o lic ie s  
re g a rd in g  r is k  m a n a g e m e n t  o f fl e x ib le  c o m p o n e n t s  o f re m u n e r a t io n  p a c k a g e s . 

C O M P A N Y  P E R F O R M A N C E , S H A R E H O L D E R  W E A LT H  A N D  D I R E C T O R S  A N D  E X E C U T I V E S  R E M U N E R A T I O N

In  a c c o rd a n c e  w it h  t h e  re m u n e r a t io n  p o lic y  n o t e d  a b o v e , t h e  G ro u p  in c lu d e s  t h e  fo llo w in g  p r in c ip le s  in  it s  re m u n e r a t io n  
fr a m e w o r k :

> 

 C o m p e t it iv e  re w a rd s  a re  s e t  t o  a t t r a c t  h ig h  c a lib re  e x e c u t iv e s

> 

 E x e c u t iv e  re w a rd s  a re  lin k e d  t o  s h a re h o ld e r  v a lu e .

F o r  e x e c u t iv e s , t h e  G ro u p ’s  p o lic y  is  t o  p o s it io n  t o t a l e m p lo y m e n t  c o s t s  w it h in  a  p e e r  g ro u p . T h e  m ix  o f fi x e d  a n d  v a r ia b le  
c o m p o n e n t s  o f e m p lo y m e n t  c o s t s  is  d e r iv e d  fro m  d a t a  a s s e s s in g  m a r k e t  r a t e  la b o u r  c o s t s  b y  p o s it io n .

T h e re  a re  n o  fi n a n c ia l m e a s u re s  t h a t  a re  in c lu d e d  in  t h e  a s s e s s m e n t , b u t  t h e  R e m u n e r a t io n  C o m m it t e e  c o n s id e r s  t h e  
g ro w t h  in  m a r k e t  c a p it a lis a t io n  a n  im p o r t a n t  p a r a m e t e r. F o r  n o n -fi n a n c ia l m e a s u re s , a  r a n g e  o f fa c t o r s  a re  c o n s id e re d  
in c lu d in g : m a r k e t  p o s it io n , re la t io n s h ip  w it h  a  r a n g e  o f s t a k e h o ld e r s , r is k  m a n a g e m e n t , le a d e r s h ip , a n d  t e a m  c o n t r ib u t io n . 

S H A R E  O P T I O N  P L A N

M a g n is  E n e rg y  Te c h n o lo g ie s  L im it e d  o p e r a t e s  a n  o w n e r s h ip -b a s e d  s c h e m e  fo r  D ire c t o r s  a n d  E m p lo y e e s  o f t h e  
c o n s o lid a t e d  e n t it y . In  a c c o rd a n c e  w it h  t h e  p ro v is io n s  o f t h e  P la n , s h a re s  a n d  o p t io n s  a re  h e ld  o n  b e h a lf o f P la n  
P a r t ic ip a n t s  b y  t h e  T r u s t e e  o f t h e  M a g n is  O p t io n  S h a re  T r u s t  (“M O S T ”). 

D u r in g  t h e  y e a r  e n d e d  3 0  J u n e  2 0 2 0 , 8 ,1 0 0 ,0 0 0  o p t io n s  (2 0 1 9 : 1 ,0 0 0 ,0 0 0 ) o n  v a r y in g  t e r m s  a n d  c o n d it io n s  w e re  a llo t t e d  t o  
t h e  T r u s t  u n d e r  t h e  s h a re  s c h e m e .

S E R V I C E  A G R E E M E N T S

R e m u n e r a t io n  a n d  o t h e r  t e r m s  o f e m p lo y m e n t  fo r  k e y  m a n a g e m e n t  p e r s o n n e l a re  fo r m a lis e d  in  s e r v ic e  a g re e m e n t s . 

R e m u n e r a t io n  a g re e m e n t s  a re  s e t  o u t  b e lo w :

M A G N IS  E N E R G Y  T E C H N O L O G IE S   - A N N U A L  R E P O R T  2 0 2 0  

2 9

D ire c t o r s ’ R e p o r t

J a m e s  D a c k  - E x e c u t iv e  D ir e c t o r  

> 

 N o  a g re e m e n t  e x p ir y  d a t e ;

> 

> 

  R e m u n e r a t io n  is  $ 3 0 0 ,0 0 0  (2 0 1 9 : n il) p e r  a n n u m  in c lu d in g  s t a t u t o r y  s u p e r a n n u a t io n  g u a r a n t e e  p lu s  a  o n c e -o ff  S ig n -
O n  F e e  o f $ 3 8 0 ,0 0 0 . T h e  S ig n -O n  F e e  w ill b e  re p a id  t o  t h e  C o m p a n y  b y  t h e  E m p lo y e e , if t h e  E m p lo y e e  t e r m in a t e s  t h is  
A g re e m e n t  w it h in  t h e  fi r s t  t w e lv e  m o n t h s

  S u b je c t  t o  s h a re h o ld e r  a p p ro v a l t o  b e  o b t a in e d  a t  t h e  n e x t  A n n u a l G e n e r a l M e e t in g  o r  E x t r a o rd in a r y  G e n e r a l M e e t in g  
(w h ic h e v e r  c o m e s  fi r s t ) t h e  E m p lo y e e  w ill b e  g r a n t e d  2 0 ,0 0 0 ,0 0 0  fu lly  p a id  o rd in a r y  s h a re s  in  t h e  C o m p a n y . T h e  s h a re s  
w ill h a v e  a  t h re e  y e a r  e s c ro w  p e r io d  fro m  t h e  d a t e  t h e y  a re  is s u e d . T h e  s h a re s  w ill b e  c o n d it io n a l u p o n  M r  D a c k  s e r v in g  
a  fu ll t w o  c o n s e c u t iv e  y e a r  p e r io d  o f e m p lo y m e n t  w it h  t h e  C o m p a n y ;

> 

  T h e  a g re e m e n t  a n d  t h e  e m p lo y m e n t  c re a t e d  b y  it  m a y  b e  t e r m in a t e d  b y  e it h e r  M a g n is  E n e rg y  Te c h n o lo g ie s  L t d  o r  M r  
D a c k  b y  g iv in g  t h e  o t h e r  p a r t y  3  m o n t h s ’ n o t ic e ; a n d  

> 

 T h e  a g re e m e n t  is  s u b je c t  t o  a n n u a l re v ie w .

F r a n k  P o u lla s  - E x e c u t iv e  C h a ir m a n

> 

 N o  a g re e m e n t  e x p ir y  d a t e ;

> 

 R e m u n e r a t io n  is  $ 1 2 0 ,0 0 0  (2 0 1 9 : n il) p e r  a n n u m  in c lu d in g  s t a t u t o r y  s u p e r a n n u a t io n  g u a r a n t e e

> 

> 

 C o n s u lt in g  fe e s  o f $ 1 ,0 0 0  p e r  b u s in e s s  d a y  t h a t  is  a p p lic a b le  if in v o ic e d  fro m  S t ro n g  S o lu t io n s  P t y  L t d , a  re la t e d  p a r t y  t o  
M r  P o u lla s

 T h e  a g re e m e n t  a n d  t h e  e m p lo y m e n t  c re a t e d  b y  it  m a y  b e  t e r m in a t e d  b y  e it h e r  M a g n is  E n e rg y  Te c h n o lo g ie s  L t d  o r  M r  
P o u lla s  b y  g iv in g  t h e  o t h e r  p a r t y  3  m o n t h s ’ n o t ic e ; a n d

> 

 T h e  a g re e m e n t  is  s u b je c t  t o  a n n u a l re v ie w .

D r  F r a n k  H o u llis  - C h ie f  E x e c u t iv e  O ffi c e r

> 

 N o  a g re e m e n t  e x p ir y  d a t e ;

> 

 R e m u n e r a t io n  o f $ 2 0 0 ,0 0 0  fro m  1  A p r il 2 0 2 0  (2 0 1 9 : $ 3 0 0 ,0 0 0 ) p e r  a n n u m  p lu s  s t a t u t o r y  s u p e r a n n u a t io n  g u a r a n t e e ;

> 

 T h e  a g re e m e n t  a n d  t h e  e m p lo y m e n t  c re a t e d  b y  it  m a y  b e  t e r m in a t e d  b y  e it h e r  M a g n is  E n e rg y  Te c h n o lo g ie s  L t d  o r  D r  
H o u llis  g iv in g  t h e  o t h e r  p a r t y  1 2  m o n t h s ’ n o t ic e . T h e  a g re e m e n t  a ls o  in c lu d e s  a  6  m o n t h  ‘n o n -c o m p e t e ’ c la u s e  fo r  D r  
H o u llis ; a n d

> 

 T h e  a g re e m e n t  is  s u b je c t  t o  a n n u a l re v ie w .

O t h e r  t r a n s a c t io n s  w it h  k e y  m a n a g e m e n t  p e r s o n n e l

A  t o t a l o f $ 2 3 1 ,5 3 7  w a s  p a id  in  c o n s u lt a n c y  fe e s  t o  re la t e d  p a r t ie s  o f t h e  N o n -e x e c u t iv e  d ire c t o r s  d u r in g  t h e  fi n a n c ia l y e a r  
(2 0 1 9 : $ 7 4 4 ,4 6 8 ). T h e  c o n s u lt a n c y  s e r v ic e s  a re  p ro v id e d  u n d e r  n o r m a l c o m m e rc ia l t e r m s  a n d  a re  d is c lo s e d  in  d e t a il u n d e r  
N o t e  2 4  a n d  N o t e  2 5 .

3 0  

A N N U A L  R E P O R T  2 0 2 0  - M A G N IS  E N E R G Y  T E C H N O L O G IE S

T a b l e  1 : R e m u n e r a t i o n  f o r  t h e  y e a r  e n d e d  3 0  J u n e  2 0 2 0

N o n  E x e c u t iv e  D ir e c t o r s

S a la r y  &  F e e s   
$

C a s h  B o n u s e s  
$

T e r m in a t io n  
B e n e fi t s   
$

P o s t  
E m p lo y m e n t  
B e n e fi t s   
$

S h a r e  B a s e d  
P a y m e n t s  
O p t io n s #   
$

T o t a l  
$

H o n  W  L  S m it h   
(re s ig n e d  0 1 -J a n -2 0 2 0 )

J  C  J o o s t e -J a c o b s   
(re t ire d  3 1 -M a y -2 0 2 0 ) *

L  H o s k in g   
(re s ig n e d  2 1 -F e b -2 0 2 0 )

P  T s e g a s

H o n . T ro y  G r a n t   
(a p p o in t e d  2 3 -J u n -2 0 2 0 )

3 1 ,9 6 3

7 0 ,0 0 0

5 6 ,4 9 4

3 5 ,0 0 0

-

P ro fe s s o r  M . S . W h it t in g h a m

7 0 ,0 0 0

S  D e G a m ia   
(a p p o in t e d  0 1 -J a n -2 0 2 0 ,

re s ig n e d  2 5 -F e b -2 0 2 0 )

1 0 ,0 0 0

K e y  m a n a g e m e n t  p e r s o n n e l

M  V o g t s  (re s ig n e d  3 1 -J a n -2 0 2 0 )

F  H o u llis   
(t e r m in a t e d  2 1 -A u g -2 0 2 0 )

F  P o u lla s *

1 5 6 ,3 3 5  

2 7 5 ,0 0 0  

9 0 ,0 0 0  

J  D a c k  (a p p o in t e d  1 5 -J u n -2 0 2 0 )

- 

7 9 4 ,7 9 2  

-

-

-

-

-

-

-

 - 

 - 

 - 

3 8 0 ,0 0 0  

3 8 0 ,0 0 0  

* F e e s  p a id  to  re la te d  e n titie s .
^ In c lu d e s  s u p e ra n n u a tio n  a n d  m o v e m e n ts  in  e m p lo y e e  e n title m e n ts .
#  S h a re  b a s e d  p a y m e n ts  c o n s is t o f u n lis te d  s h a re  o p tio n s  is s u e d .

T a b l e  2 : R e m u n e r a t i o n  f o r  t h e  y e a r  e n d e d  3 0  J u n e  2 0 1 9

-

-

-

-

-

-

-

 - 

 - 

 - 

 - 

 - 

3 ,0 3 7

6 ,6 5 0

 - 

 - 

 - 

 - 

 - 

1 0 0  

1 0 0  

1 0 0  

 - 

1 0 0  

3 5 ,0 0 0  

7 6 ,7 5 0  

5 6 ,5 9 4  

3 5 ,1 0 0  

 - 

7 0 ,1 0 0  

9 5 0  

 - 

1 0 ,9 5 0  

1 4 ,6 1 5  

2 6 ,1 2 5  

8 ,5 5 0  

- 

5 9 ,9 2 7  

 2 4 7  

- 

 1 0 0  

- 

 7 4 7  

1 7 1 ,1 9 7  

3 0 1 ,1 2 5  

9 8 ,6 5 0  

3 8 0 ,0 0 0  

 1 ,2 3 5 ,4 6 6  

N o n  E x e c u t iv e  D ir e c t o r s

S a la r y  &  F e e s  
 $

C a s h  B o n u s e s  
$

T e r m in a t io n  
B e n e fi t s   
$

P o s t  
E m p lo y m e n t  
B e n e fi t s 1   
$

S h a r e  B a s e d  
P a y m e n t s  
O p t io n s 2    
$

T o t a l  
$

F  P o u lla s 3

P  T s e g a s 3

M  S  W h it t in g h a m  

W  L  S m it h   
(a p p o in t e d  7 -S e p -2 0 1 8 )

J  C  J o o s t e -J a c o b s 3

L  H o s k in g   
(a p p o in t e d  5 -M a r -2 0 1 9 )

1 2 0 ,0 0 0

7 0 ,0 0 0

7 0 ,0 0 0

5 1 ,8 7 9

7 0 ,0 0 0

2 1 ,0 7 4

U  B e z  (re s ig n e d  2 8 -F e b -2 0 1 9 )

4 3 ,3 2 8

K e y  m a n a g e m e n t  p e r s o n n e l

M  V o g t s

F  H o u llis

T  P e lu s o  (re s ig n e d  2 0 -J u n -2 0 1 9 )

1 9 5 ,6 0 8

3 0 0 ,0 0 0

2 5 3 ,3 3 7

1,195,226

-

-

-

-

-

-

-

-

-

-

-

1  In c lu d e s  s u p e ra n n u a tio n  a n d  m o v e m e n ts  in  c o m p e n s a te d  a b s e n c e s . 
2  S h a re  b a s e d  p a y m e n ts  c o n s is t o f u n lis te d  s h a re  o p tio n s  is s u e d .
3  F e e s  p a id  to  re la te d  e n titie s .

-

-

-

-

-

-

-

-

-

1 9 ,2 3 1

19,231

1 1 ,4 0 0

-

-

4 ,9 2 9

6 ,6 5 0

-

-

1 9 ,2 5 7

4 4 ,5 3 4

2 3 ,1 5 6

109,926

-

-

-

1 1 ,4 0 0

-

-

-

-

-

-

11,400

1 3 1 ,4 0 0

7 0 ,0 0 0

7 0 ,0 0 0

6 8 ,2 0 8

7 6 ,6 5 0

2 1 ,0 7 4

4 3 ,3 2 8

2 1 4 ,8 6 5

3 4 4 ,5 3 4

2 9 5 ,7 2 4

1,335,783

M A G N IS  E N E R G Y  T E C H N O L O G IE S   - A N N U A L  R E P O R T  2 0 2 0  

3 1

D ire c t o r s ’ R e p o r t

C o m p e n s a t i o n  o p t i o n s  g r a n t e d  a n d  v e s t e d  

D u r in g  t h e  fi n a n c ia l y e a r, t h e  fo llo w in g  s h a re -b a s e d  p a y m e n t s  w e re  a w a rd e d , v e s t e d , e x e rc is e d , o r  la p s e d : 

T a b l e  1 : O p t i o n s  A w a r d e d

G r a n t  D a t e  a n d  V e s t in g  
D a t e

E x p ir y  D a t e

2 6 -N o v -2 0 1 9

2 6 -N o v -2 0 1 9

2 6 -N o v -2 0 1 9

2 6 -N o v -2 0 1 9

3 1 -O c t -2 0 2 2

1 5 -N o v -2 0 2 1

1 5 -N o v -2 0 2 1

1 5 -N o v -2 0 2 1

G r a n t  D a t e  F a ir  
V a lu e    
$

0 .0 0 0 1

0 .0 0 0 2

0 .0 0 0 0 0 9 5

0 .0 0 0 0 0 0 8

N u m b e r

6 ,0 0 0 ,0 0 0  

7 0 0 ,0 0 0  

7 0 0 ,0 0 0  

7 0 0 ,0 0 0  

O r ig in a l E x e r c is e  
P r ic e  o f  O p t io n   
$

F a ir  V a lu e  E x p e n s e  
u n d e r  A A S B  2  
 $

0 .7 0  

0 .5 0  

0 .7 5  

1 .0 0  

6 0 0  

1 4 0  

7  

1  

W E IG H T E D  A V E R A G E  FA IR  VA L U E  O F  O P T IO N S  G R A N T E D  

0 .0 0 0 0 9

T a b l e  2 : O p t i o n s  E x e r c i s e d

G r a n t  D a t e  a n d  V e s t in g  
D a t e

E x p ir y  D a t e

G r a n t  D a t e  F a ir  
V a lu e    
$

N u m b e r

O r ig in a l E x e r c is e  
P r ic e  o f  O p t io n   
$

F a ir  V a lu e  E x p e n s e  
u n d e r  A A S B  2   
$

T a b l e  3 : O p t i o n s  L a p s e d

G r a n t  D a t e  a n d  V e s t in g  
D a t e

E x p ir y  D a t e

G r a n t  D a t e  F a ir  
V a lu e    
$

2 1 -O c t -2 0 1 6

1 4 -D e c -2 0 1 7

2 6 -O c t -2 0 1 8

7 -A p r -2 0 1 7

2 6 -N o v -2 0 1 9

2 6 -N o v -2 0 1 9

2 6 -N o v -2 0 1 9

2 6 -N o v -2 0 1 9

2 6 -N o v -2 0 1 9

2 1 -O c t -2 0 1 9

1 7 -N o v -2 0 1 9

1 -A p r -2 0 2 0

7 -A p r -2 0 2 0

3 0 -A p r -2 0 2 0

3 0 -A p r -2 0 2 0

3 0 -A p r -2 0 2 0

3 0 -A p r -2 0 2 0

2 5 -M a y -2 0 2 0

0 .2 1 7 6 0 0

0 .0 4 8 7 0 0

0 .0 1 1 4 0 0

0 .0 9 1 1 0 0

0 .0 0 0 2 0 0

0 .0 0 0 0 0 9

0 .0 0 0 0 0 1

0 .0 0 0 1 0 0

0 .0 0 0 1 0 0

N u m b e r

3 ,0 0 0 ,0 0 0

2 ,0 0 0 ,0 0 0

1 ,0 0 0 ,0 0 0

7 5 0 ,0 0 0

7 0 0 ,0 0 0

7 0 0 ,0 0 0

7 0 0 ,0 0 0

1 ,0 0 0 ,0 0 0

1 ,0 0 0 ,0 0 0

1 0 ,8 5 0 ,0 0 0

O r ig in a l E x e r c is e  
P r ic e  o f  O p t io n   
$

F a ir  V a lu e  E x p e n s e  
u n d e r  A A S B  2   
$

0 .7 0

0 .7 0

0 .7 0

1 .0 0

0 .5 0

0 .7 5

1 .0 0

0 .7 0

0 .7 0

6 5 2 ,8 0 0

9 7 ,4 0 0

1 1 ,4 0 0

6 8 ,3 2 5

1 4 0

6

1

1 0 0

1 0 0

8 3 0 ,2 7 2

3 2  

A N N U A L  R E P O R T  2 0 2 0  - M A G N IS  E N E R G Y  T E C H N O L O G IE S

 
A D D I T I O N A L  D I S C L O S U R E S  R E L A T I N G  T O  K E Y  M A N A G E M E N T  P E R S O N N E L

S h a r e h o ld in g

T h e  n u m b e r  o f s h a re s  in  t h e  C o m p a n y  h e ld  d u r in g  t h e  fi n a n c ia l y e a r  b y  e a c h  d ire c t o r  a n d  o t h e r  m e m b e r s  o f k e y  
m a n a g e m e n t  p e r s o n n e l o f t h e  c o n s o lid a t e d  e n t it y , in c lu d in g  t h e ir  p e r s o n a lly  re la t e d  p a r t ie s , is  s e t  o u t  b e lo w :

B a la n c e  a t  
t h e  s t a r t  o f  
t h e  y e a r

1 5 ,1 1 2 ,4 6 6  

6 5 0 ,2 0 0  

5 ,3 3 0 ,7 1 4  

1 0 0 ,0 0 0  

7 7 0 ,0 0 0  

3 ,1 1 4 ,7 5 9  

-

-

6 3 7 ,9 4 5  

2 5 ,7 1 6 ,0 8 4

G r a n t e d

A d d it io n s

D is p o s a ls / 
o t h e r

-

-

-

-

-

-

-

-

-

-

8 7 1 ,4 6 0

-

-

-

-

-

-

-

-

8 7 1 ,4 6 0

-

-

-

-

-

-

-

-

-

-

B a la n c e  a t  
t h e  e n d  o f  
t h e  y e a r

1 5 ,9 8 3 ,9 2 6  

6 5 0 ,2 0 0  

5 ,3 3 0 ,7 1 4  

1 0 0 ,0 0 0  

7 7 0 ,0 0 0  

3 ,1 1 4 ,7 5 9  

-

-

6 3 7 ,9 4 5  

2 6 ,5 8 7 ,5 4 4

O r d in a r y  s h a r e s

F  P o u lla s

H o n . W  L  S m it h   
(a p p o in t e d  7 -S e p -2 0 1 8 )!

J  C  J o o s t e -J a c o b s

L  H o s k in g   
(a p p o in t e d  5 -M a r -2 0 1 9 )!

P  T s e g a s

M  V o g t s

M  S  W h it t in g h a m  

J  D a c k  (a p p o in t e d  1 5 -J u n -2 0 2 0 )!

F  H o u llis

! O p e n in g  b a la n c e  a s  a t a p p o in tm e n t d a te

O p t i o n  h o l d i n g

T h e  n u m b e r  o p t io n s  o v e r  o rd in a r y  s h a re s  in  t h e  C o m p a n y  h e ld  d u r in g  t h e  fi n a n c ia l y e a r  b y  e a c h  d ire c t o r  a n d  o t h e r  
m e m b e r s  o f k e y  m a n a g e m e n t  p e r s o n n e l o f t h e  c o n s o lid a t e d  e n t it y , in c lu d in g  t h e ir  p e r s o n a lly  re la t e d  p a r t ie s , is   
s e t  o u t  b e lo w :

G r a n t e d

A d d it io n s

O r d in a r y  s h a r e s

F  P o u lla s

J  C  J o o s t e -J a c o b s   
(re s ig n e d  3 1 -0 5 -2 0 2 0 ) 4

P  T s e g a s

M  V o g t s  (re s ig n e d  3 1 -0 1 -2 0 2 0 ) 4

M  S  W h it t in g h a m

H o n  W  L  S m it h   
(re s ig n e d  1 -0 1 -2 0 2 0 ) 4

L  H o s k in g  (re s ig n e d  2 1 -0 2 -2 0 2 0 ) 4

H o n  T ro y  G r a n t   
(a p p o in t e d  2 3 -0 6 -2 0 2 0 ) 3

J  D a c k  (a p p o in t e d  1 5 -0 6 -2 0 2 0 ) 2

F  H o u llis

T  P e lu s o  (re s ig n e d  2 0 -0 6 -2 0 1 9 ) 4

B a la n c e  a t  
t h e  s t a r t  o f  
t h e  y e a r

1 ,0 0 0 ,0 0 0

1 ,0 0 0 ,0 0 0

1 ,0 0 0 ,0 0 0

1 ,0 0 0 ,0 0 0

1 ,0 0 0 ,0 0 0

1 ,0 0 0 ,0 0 0

-

-

-

1 ,5 0 0 ,0 0 0

7 5 0 ,0 0 0

1 ,0 0 0 ,0 0 0

1 ,0 0 0 ,0 0 0

1 ,0 0 0 ,0 0 0

3 ,1 0 0 ,0 0 0

1 ,0 0 0 ,0 0 0

1 ,0 0 0 ,0 0 0

-

-

-

-

-

8 ,2 5 0 ,0 0 0

8 ,1 0 0 ,0 0 0

1  a ll o p t io n s  v e s t im m e d ia te ly  a n d  a re  e x e rc is a b le  a t a n y tim e
2  o p e n in g  b a la n c e  a s  a t 1 5 -0 6 -2 0 2 0
3  o p e n in g  b a la n c e  a s  a t 2 3 -0 6 -2 0 2 0
4  a t tim e  o f re s ig n a tio n  a s  D ire c to r/ k e y  m a n a g e m e n t p e rs o n n e l

D is p o s a ls / 
o t h e r

(1 ,0 0 0 ,0 0 0 )

(1 ,0 0 0 ,0 0 0 )

(1 ,0 0 0 ,0 0 0 )

(4 ,1 0 0 ,0 0 0 )

(1 ,0 0 0 ,0 0 0 )

(1 ,0 0 0 ,0 0 0 )

(1 ,0 0 0 ,0 0 0 )

-

-

-

(7 5 0 ,0 0 0 )

B a la n c e  a t  
t h e  e n d  o f  
t h e  y e a r

1 ,0 0 0 ,0 0 0

1 ,0 0 0 ,0 0 0

1 ,0 0 0 ,0 0 0

-

1 ,0 0 0 ,0 0 0

-

-

-

-

1 ,5 0 0 ,0 0 0

-

(1 0 ,8 5 0 ,0 0 0 )

5 ,5 0 0 ,0 0 0

-

-

-

-

-

-

-

-

-

-

-

-

M A G N IS  E N E R G Y  T E C H N O L O G IE S   - A N N U A L  R E P O R T  2 0 2 0  

3 3

D ire c t o r s ’ R e p o r t

O T H E R  T R A N S A C T I O N S  W I T H  K E Y  M A N A G E M E N T  P E R S O N N E L  A N D  T H E I R  R E L A T E D  P A R T I E S

D u r in g  o r  s in c e  t h e  fi n a n c ia l y e a r, n o  D ire c t o r  o f t h e  C o m p a n y  h a s  re c e iv e d  o r  b e c o m e  e n t it le d  t o  re c e iv e  a  b e n e fi t , o t h e r  
t h a n  a  b e n e fi t  in c lu d e d  in  t h e  a g g re g a t e  a m o u n t  o f e m o lu m e n t s  re c e iv e d  o r  d u e  a n d  re c e iv a b le  b y  t h e  D ire c t o r s  s h o w n  in  
t h e  c o n s o lid a t e d  a c c o u n t s , b y  re a s o n  o f a  c o n t r a c t  e n t e re d  in t o  b y  t h e  C o m p a n y  o r  a n  e n t it y  t h a t  t h e  C o m p a n y  c o n t ro lle d  
o r  a  b o d y  c o r p o r a t e  t h a t  w a s  re la t e d  t o  t h e  C o m p a n y  w h e n  t h e  c o n t r a c t  w a s  m a d e  o r  w h e n  t h e  D ire c t o r  re c e iv e d , o r  
b e c a m e  e n t it le d  t o  re c e iv e , t h e  b e n e fi t  w it h :

> 

a  D ire c t o r, o r

> 

a  fi r m  o f w h ic h  a  D ire c t o r  is  a  m e m b e r, o r

> 

 a n  e n t it y  in  w h ic h  a  D ire c t o r  h a s  s u b s t a n t ia l fi n a n c ia l in t e re s t  e x c e p t  t h e  u s u a l p ro fe s s io n a l fe e s  fo r  t h e ir  s e r v ic e s  p a id  
b y  t h e  C o m p a n y  t o : 

Id e n t it y  o f  R e la t e d  P a r t y

N a t u r e  o f  R e la t io n s h ip

T y p e  o f  
T r a n s a c t io n

T e r m s  &  
C o n d it io n s  o f  
T r a n s a c t io n

A g g r e g a t e  A m o u n t

2 0 2 0  
$

2 0 1 9  
$

S t ro n g  S o lu t io n s   
P t y  L im it e d

F r a n k  P o u lla s  is  a  re la t e d  p a r t y  o f S t ro n g  
S o lu t io n s  P t y  L im it e d  a n d  a  d ire c t o r  o f 
M a g n is  E n e rg y  Te c h n o lo g ie s  L im it e d

C o n s u lt in g  
fe e s  a n d  P & E  
p u rc h a s e s

P e t e r  T s e g a s

P e t e r  T s e g a s  is  a  D ire c t o r  o f  
M a g n is  E n e rg y  Te c h n o lo g ie s  L t d

C o n s u lt in g  
F e e s

M  S t a n le y  W h it t in g h a m

M  S t a n le y  W h it t in g h a m  is  a   
D ire c t o r  o f M a g n is  E n e rg y   
Te c h n o lo g ie s  L im it e d

D r  U lr ic h  B e z  H o n D Te c h

D r  U lr ic h  B e z  is  a  D ire c t o r  o f  
M a g n is  E n e rg y  Te c h n o lo g ie s  L im it e d

C o n s u lt in g  
F e e s

C o n s u lt in g  
F e e s

N o r m a l 
c o m m e rc ia l 
t e r m s

N o r m a l 
c o m m e rc ia l 
t e r m s

N o r m a l 
c o m m e rc ia l 
t e r m s

N o r m a l 
c o m m e rc ia l 
t e r m s

1 8 1 ,7 7 0

3 1 4 ,5 6 8

3 5 ,0 1 8

4 2 0 ,0 0 0

1 4 ,7 4 9

-

-

9 ,9 0 0

2 0 1 9  R E M U N E R A T I O N  R E P O R T

T h e  R e m u n e r a t io n  R e p o r t  re c e iv e d  p o s it iv e  s h a re h o ld e r  s u p p o r t  fro m  m e m b e r s  [8 8 % ] a t  t h e  2 0 1 9  A n n u a l  
G e n e r a l M e e t in g .

T h i s  c o n c l u d e s  t h e  r e m u n e r a t i o n  r e p o r t , w h i c h  h a s  b e e n  a u d i t e d .

S H A R E S  U N D E R  O P T I O N  

D e t a ils  o f u n is s u e d  s h a re s  u n d e r  o p t io n  a s  a t  3 0  J u n e  2 0 2 0  in  M a g n is  E n e r g y  Te c h n o lo g ie s  L im it e d  a re :

N u m b e r  o f  o r d in a r y  s h a r e s

C la s s  o f  s h a r e s

E x e r c is e  p r ic e  o f  o p t io n

E x p ir y  d a t e  o f  o p t io n

4 ,0 0 0 ,0 0 0

2 ,0 0 0 ,0 0 0

4 ,0 0 0 ,0 0 0

O rd in a r y

O rd in a r y

O rd in a r y

0 .4

0 .7

0 .7

A p r -2 1

J u n -2 1

O c t -2 2

T h e  h o ld e r s  o f t h e s e  o p t io n s  d o  n o t  h a v e  t h e  r ig h t , b y  v ir t u e  o f t h e  o p t io n , t o  p a r t ic ip a t e  in  a n y  s h a re  is s u e  o r  in t e re s t  is s u e  
o f t h e  C o m p a n y  o r  o f a n y  o t h e r  b o d y  c o r p o r a t e  o r  re g is t e re d  s c h e m e . N o  v o t in g  r ig h t s  a t t a c h e d  t o  t h e  o p t io n s .

T h e re  w e re  N il (2 0 1 9 : 7 5 0 ,0 0 0 ) s h a re s  is s u e d  d u r in g  t h e  2 0 2 0  fi n a n c ia l y e a r  a s  a  re s u lt  o f e x e rc is in g  o f o p t io n s .

3 4  

A N N U A L  R E P O R T  2 0 2 0  - M A G N IS  E N E R G Y  T E C H N O L O G IE S

I N D E M N I F I C A T I O N  A N D  I N S U R A N C E  O F  D I R E C T O R S  A N D  O F F I C E R S

T h e  C o m p a n y  h a s  a g re e d  t o  in d e m n ify  a ll t h e  d ire c t o r s  a n d  e x e c u t iv e  o ffi c e r s  fo r  a n y  b re a c h  o f la w s  b y  t h e  C o m p a n y  fo r  
w h ic h  t h e y  m a y  b e  h e ld  p e r s o n a lly  lia b le . T h e  a g re e m e n t  p ro v id e s  fo r  t h e  C o m p a n y  t o  p a y  lia b ilit ie s  o r  le g a l e x p e n s e s  t o  
t h e  e x t e n t  p e r m it t e d  b y  la w .

D u r in g  o r  s in c e  t h e  fi n a n c ia l y e a r, t h e  C o m p a n y  h a s  p a id  p re m iu m s  in s u r in g  a ll t h e  D ire c t o r s  o f M a g n is  E n e rg y  
Te c h n o lo g ie s  L im it e d  a g a in s t  c o s t s  in c u r re d  in  d e fe n d in g  p ro c e e d in g s  fo r  c o n d u c t  o t h e r  t h a n : 

> 

> 

(a ) a  w ilfu l b re a c h  o f d u t y  

(b )  a  c o n t r a v e n t io n  o f s e c t io n s  1 8 2  o r  1 8 3  o f t h e  C o r p o r a t io n s  A c t , 2 0 0 1  

a s  p e r m it t e d  b y  s e c t io n  1 9 9 B  o f t h e  C o r p o r a t io n s  A c t , 2 0 0 1 . 

T h e  t o t a l a m o u n t  o f in s u r a n c e  c o n t r a c t  p re m iu m s  p a id  is  c o n fi d e n t ia l u n d e r  t h e  t e r m s  o f t h e  in s u r a n c e  p o lic y . 

I N D E M N I F I C A T I O N  A N D  I N S U R A N C E  O F  A U D I T O R

To  t h e  e x t e n t  p e r m it t e d  b y  la w , t h e  C o m p a n y  h a s  n o t  a g re e d  t o  in d e m n ify  it s  a u d it o r s , H a ll C h a d w ic k  M e lb o u r n e  A u d it , 
a s  p a r t  o f t h e  t e r m s  o f it s  a u d it  e n g a g e m e n t  a g re e m e n t  a g a in s t  c la im s  b y  t h ird  p a r t ie s  a r is in g  fro m  t h e  a u d it  (fo r  a n  
u n s p e c ifi e d  a m o u n t ). N o  p a y m e n t  h a s  b e e n  m a d e  t o  in d e m n ify  H a ll C h a d w ic k  M e lb o u r n e  A u d it  d u r in g  o r  s in c e  t h e  y e a r  
e n d e d  3 0  J u n e  2 0 2 0 .

P R O C E E D I N G S  O N  B E H A L F  O F  T H E  C O M P A N Y

N o  p e r s o n  h a s  a p p lie d  t o  t h e  C o u r t  u n d e r  S e c t io n  2 3 7  o f t h e  C o r p o r a t io n s  A c t  2 0 0 1  fo r  le a v e  t o  b r in g  p ro c e e d in g s  o n  
b e h a lf o f t h e  C o m p a n y , o r  t o  in t e r v e n e  in  a n y  p ro c e e d in g s  t o  w h ic h  t h e  C o m p a n y  is  p a r t y  fo r  t h e  p u r p o s e  o f t a k in g  
re s p o n s ib ilit y  o n  b e h a lf o f t h e  C o m p a n y  fo r  a ll o r  p a r t  o f t h o s e  p ro c e e d in g s .

S U B S E Q U E N T  E V E N T S

S u b s e q u e n t  e v e n t s  s in c e  t h e  e n d  o f t h e  y e a r  a re  o u t lin e d  in  N o t e  2 1  ‘S u b s e q u e n t  e v e n t s ’ t o  t h e  F in a n c ia l S t a t e m e n t s .

R O U N D I N G  O F  A M O U N T S

T h e  C o m p a n y  is  a  c o m p a n y  o f t h e  k in d  re fe r re d  t o  in  A S IC  C o r p o r a t io n s  (R o u n d in g  in  F in a n c ia l / D ire c t o r s ’ R e p o r t s ) 
In s t r u m e n t  2 0 1 6 /1 9 1 , d a t e d  2 4  M a rc h  2 0 1 6 , a n d  in  a c c o rd a n c e  w it h  t h a t  C o r p o r a t io n s  In s t r u m e n t  a m o u n t s  in  t h e  D ire c t o r s ’ 
R e p o r t  a n d  t h e  F in a n c ia l S t a t e m e n t s  a re  ro u n d e d  o ff  t o  t h e  n e a re s t  d o lla r, u n le s s  o t h e r w is e  in d ic a t e d .

N O N -A U D I T  S E R V I C E S

D e t a ils  o f t h e  a m o u n t s  p a id  o r  p a y a b le  t o  t h e  a u d it o r  fo r  n o n -a u d it  s e r v ic e s  p ro v id e d  d u r in g  t h e  fi n a n c ia l y e a r  b y  t h e  
a u d it o r  a re  o u t lin e d  b e lo w :

H a ll C h a d w ic k  M e lb o u r n e  A u d it

> 

> 

T a x a t io n  s e r v ic e s  –A u s t r a lia  &  T a n z a n ia  $ N il

C o r p o r a t e  s e r v ic e s - A u s t r a lia  $ N il

B D O  E a s t  C o a s t  P a r t n e r s

> 

> 

T a x a t io n  s e r v ic e s  –A u s t r a lia  &  T a n z a n ia  $ 3 6 ,4 0 0

C o r p o r a t e  s e r v ic e s - A u s t r a lia  $ N il

T h e  d ire c t o r s  a re  s a t is fi e d  t h a t  t h e  p ro v is io n  o f n o n -a u d it  s e r v ic e s  d u r in g  t h e  fi n a n c ia l y e a r, b y  t h e  a u d it o r  (o r  b y  a n o t h e r  
p e r s o n  o r  fi r m  o n  t h e  a u d it o r ’s  b e h a lf ), is  c o m p a t ib le  w it h  t h e  g e n e r a l s t a n d a rd  o f in d e p e n d e n c e  fo r  a u d it o r s  im p o s e d  b y  
t h e  C o r p o r a t io n s  A c t  2 0 0 1 .

M A G N IS  E N E R G Y  T E C H N O L O G IE S   - A N N U A L  R E P O R T  2 0 2 0  

3 5

D ire c t o r s ’ R e p o r t

T h e  d ire c t o r s  a re  o f t h e  o p in io n  t h a t  t h e  s e r v ic e s  a s  d is c lo s e d  in  N o t e  2 2  t o  t h e  fi n a n c ia l s t a t e m e n t s  d o  n o t  c o m p ro m is e  t h e  
e x t e r n a l a u d it o r ’s  in d e p e n d e n c e  re q u ire m e n t s  o f t h e  C o r p o r a t io n s  A c t  2 0 0 1  fo r  t h e  fo llo w in g  re a s o n s :

> 

> 

 a ll n o n -a u d it  s e r v ic e s  h a v e  b e e n  re v ie w e d  a n d  a p p ro v e d  t o  e n s u re  t h a t  t h e y  d o  n o t  im p a c t  t h e  in t e g r it y  a n d  o b je c t iv it y  
o f t h e  a u d it o r ; a n d

  n o n e  o f t h e  s e r v ic e s  u n d e r m in e  t h e  g e n e r a l p r in c ip le s  re la t in g  t o  a u d it o r  in d e p e n d e n c e  a s  s e t  o u t  in  A P E S  1 1 0  C o d e  
o f E t h ic s  fo r  P ro fe s s io n a l A c c o u n t a n t s  is s u e d  b y  t h e  A c c o u n t in g  P ro fe s s io n a l a n d  E t h ic a l S t a n d a rd s  B o a rd , in c lu d in g  
re v ie w in g  o r  a u d it in g  t h e  a u d it o r ’s  o w n  w o r k , a c t in g  in  a  m a n a g e m e n t  o r  d e c is io n -m a k in g  c a p a c it y  fo r  t h e  c o m p a n y , 
a c t in g  a s  a d v o c a t e  fo r  t h e  c o m p a n y  o r  jo in t ly  s h a r in g  e c o n o m ic  r is k s  a n d  re w a rd s .

A U D I T O R  I N D E P E N D E N C E  

A  c o p y  o f t h e  a u d it o r ’s  in d e p e n d e n c e  d e c la r a t io n  a s  re q u ire d  u n d e r  s e c t io n  3 0 7 C  o f t h e  C o r p o r a t io n s  A c t , 2 0 0 1  is  s e t  o u t  
o n  p a g e  1 9 .

S ig n e d  in  a c c o rd a n c e  w it h  a  re s o lu t io n  o f t h e  D ire c t o r s , p u r s u a n t  t o  s e c t io n  2 9 8 (2 )(a ) o f t h e  C o r p o r a t io n s  A c t , 2 0 0 1 .

O n  b e h a lf o f t h e  d ire c t o r s

F r a n k  P o u l l a s
E X E C U T IV E  C H A IR M A N

S y d n e y , 3 0  S e p t e m b e r  2 0 2 0

3 6  

A N N U A L  R E P O R T  2 0 2 0  - M A G N IS  E N E R G Y  T E C H N O L O G IE S

 
06A u d it o r ’s  In d e p e n d e n c e  D e c la r a t io n

MAGNIS ENERGY TECHNOLOGIES LIMITED
AND CONTROLLED ENTITIES
ABN 26 115 111 763

AUDITOR’S INDEPENDENCE DECLARATION 
UNDER SECTION 307C OF THE CORPORATIONS ACT 2001 
TO THE DIRECTORS OF MAGNIS ENERGY TECHNOLOGIES LIMITED AND 
CONTROLLED ENTITIES

In  accordance  with  section  307C  of  the  Corporations  Act  2001,  I  am  pleased  to 
provide  the  following  declaration  of  independence  to  the  directors  of  Magnis  Energy 
Technologies Limited and controlled entities. As the lead audit partner for the audit of 
the financial report of Magnis Energy Technologies Limited and controlled entities for 
the year ended 30 June 2020, I declare that, to the best of my knowledge and belief, 
there have been no contraventions of:

(i)

the auditor independence requirements as set out in the Corporations Act 2001 
in relation to the audit; and

(ii) 

any applicable code of professional conduct in relation to the audit.

Hall Chadwick 
Melbourne VIC 3000

DREW TOWNSEND
Partner
Date: 30 September 2020

MAGNIS ENERGY TECHNOLOGIES LIMITED: ANNUAL FINANCIAL REPORT 2020

19

SYDNEY   ·   PENRITH   ·   MELBOURNE   ·   BRISBANE   ·   PERTH   ·   DARWIN  
Liability limited by a scheme approved under Professional Standards Legislation 
www.hallchadwick.com.au 

M A G N IS  E N E R G Y  T E C H N O L O G IE S   - A N N U A L  R E P O R T  2 0 2 0  

3 7

07S t a t e m e n t  o f P ro fi t  o r  L o s s

&  O t h e r  C o m p re h e n s iv e  In c o m e

Y E A R  E N D E D  3 0  J U N E  2 0 2 0

C o n s o l i d a t e d

2 0 2 0   
$

N o t e s

I n c o m e  

In t e re s t  re c e iv e d  

R & D  G r a n t  

F o re ig n  e x c h a n g e  g a in  

P ro fi t  o n  s a le  o f fi x e d  a s s e t s  

O t h e r  re v e n u e  

G o v e r n m e n t  G r a n t s  a n d  A s s is t a n c e  

3 1  

1 3 0 ,3 6 3  

1 1 6 ,3 8 5  

2 0 ,9 7 8  

4 9 3 ,3 1 1  

1 9 ,8 4 3  

7 1 ,0 0 0  

2 0 1 9   
$

1 0 5 ,7 4 7

2 1 0 ,6 8 4

2 2 ,1 2 3

-

-

-

T o t a l  i n c o m e  

E x p e n d i t u r e  

A d m in is t r a t io n  e x p e n s e s  

D e p re c ia t io n  e x p e n s e  

D ire c t o r s ’ fe e s  

E m p lo y e e  b e n e fi t s  e x p e n s e  

L e g a l a n d  c o n s u lt in g  e x p e n s e s  

S h a re  b a s e d  p a y m e n t  t o  e m p lo y e e s  

S h a re  b a s e d  p a y m e n t  t o  n o n -e m p lo y e e s  

S h a re  o f n e t  lo s s  o f a s s o c ia t e  a c c o u n t e d  fo r  u s in g  t h e  e q u it y  m e t h o d  

2 8 (a ) 

2 8 (a ) 

8 5 1 ,8 8 0  

3 3 8 ,5 5 4

3 ,7 3 2 ,9 8 3  

1 ,3 1 4 ,1 0 4

1 7 9 ,6 1 5  

4 9 0 ,6 3 9  

1 ,5 1 7 ,8 7 5  

1 ,2 9 4 ,7 8 8  

7 4 7  

8 0 0  

- 

1 2 0 ,9 0 1

5 5 2 ,8 5 9

1 ,3 0 3 ,2 7 1

7 9 4 ,7 3 8

1 1 ,4 0 0

1 0 ,5 0 0

3 0 1 ,1 4 4

1 ,0 1 3 ,0 3 4  

1 ,4 7 9 ,1 9 0

8 ,2 3 0 ,4 8 1  

5 ,8 8 8 ,1 0 7

(7 ,3 7 8 ,6 0 1 ) 

(5 ,5 4 9 ,5 5 3 )

5  

-  

- 

(7 ,3 7 8 ,6 0 1 ) 

(5 ,5 4 9 ,5 5 3 ) 

(6 ,9 8 3 ,5 1 3 ) 

(5 ,5 4 9 ,5 5 3 )

(3 9 5 ,0 8 8 ) 

- 

(7 ,3 7 8 ,6 0 1 ) 

(5 ,5 4 9 ,5 5 3 ) 

(2 ,5 2 4 ,5 2 3 ) 

8 7 6 ,5 2 2  

(1 ,6 4 8 ,0 0 1 ) 

-

2 4 0 ,8 3 1

2 4 0 ,8 3 1

E x p lo r a t io n  a n d  e v a lu a t io n  e x p e n s e s  

T o t a l  e x p e n d i t u r e  

(L o s s ) b e f o r e  i n c o m e  t a x  e x p e n s e  

In c o m e  t a x  e x p e n s e  

N e t  (l o s s ) f o r  t h e  y e a r  

N e t  p r o fi t  / (l o s s ) f o r  t h e  y e a r  a t t r i b u t a b l e  t o : 
O w n e r s  o f M a g n is  E n e rg y  Te c h n o lo g ie s  L im it e d  

N o n -c o n t ro llin g  In t e re s t  

N e t  (l o s s ) f o r  t h e  y e a r  

O t h e r  c o m p r e h e n s i v e  i n c o m e /(l o s s ) 
It e m s  t h a t  m a y  b e  s u b s e q u e n t ly  re c la s s ifi e d  t o  p ro fi t  o r  lo s s

C h a n g e  in  fa ir  v a lu e  o f fi n a n c ia l a s s e t s  a t  F V O C I 

G a in  / (lo s s ) o n  fo re ig n  c u r re n c y  t r a n s la t io n  

O t h e r  c o m p r e h e n s i v e  i n c o m e  / (l o s s ) f o r  t h e  y e a r, n e t  o f  t a x  

T o t a l  c o m p r e h e n s i v e  i n c o m e  / (l o s s ) f o r  t h e  y e a r, n e t  o f  t a x  

(9 ,0 2 6 ,6 0 2 ) 

(5 ,3 0 8 ,7 2 2 )

T o t a l  c o m p r e h e n s i v e  e a r n i n g s  / (l o s s ) f o r  t h e  y e a r  a t t r i b u t a b l e  t o : 
O w n e r s  o f p a re n t  e n t it y  

N o n -c o n t ro llin g  In t e re s t  

T o t a l  c o m p r e h e n s i v e  i n c o m e  / (l o s s ) f o r  t h e  y e a r, n e t  o f  t a x  

B a s ic  lo s s  p e r  s h a re  (c e n t s  p e r  s h a re ) 

D ilu t e d  lo s s  p e r  s h a re  (c e n t s  p e r  s h a re ) 

(9 ,0 2 4 ,7 8 3 ) 

(5 ,3 0 8 ,7 2 2 )

(1 ,8 1 9 ) 

-

(9 ,0 2 6 ,6 0 2 ) 

(5 ,3 0 8 ,7 2 2 )

2 3  

2 3  

1 .1 1  

1 .1 1  

0 .9 2

0 .9 2

T h e  a b o v e  S ta te m e n t o f P ro fi t o r L o s s  a n d  O th e r C o m p re h e n s iv e  In c o m e  s h o u ld  b e  re a d  in  c o n ju n c tio n  w ith  th e  a c c o m p a n y in g  N o te s .

3 8  

A N N U A L  R E P O R T  2 0 2 0  - M A G N IS  E N E R G Y  T E C H N O L O G IE S

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
08S t a t e m e n t  o f F in a n c ia l P o s it io n

Y E A R  E N D E D  3 0  J U N E  2 0 2 0

C u r r e n t  a s s e t s  

C a s h  a n d  c a s h  e q u iv a le n t s  

T r a d e  a n d  o t h e r  re c e iv a b le s  

L o a n  re c e iv a b le s  

T o t a l  c u r r e n t  a s s e t s  

N o n  c u r r e n t  a s s e t s  

F in a n c ia l a s s e t s  a t  F V O C I 

In v e s t m e n t  a c c o u n t e d  fo r  u s in g  t h e  e q u it y  m e t h o d  

R ig h t -o f-u s e -a s s e t s  

D e v e lo p m e n t  a s s e t s  

iM 3 N Y  P & E  

P la n t  &  e q u ip m e n t  

T o t a l  n o n  c u r r e n t  a s s e t s  

T o t a l  a s s e t s  

C u r r e n t  l i a b i l i t i e s  

T r a d e  a n d  o t h e r  p a y a b le s  

L e a s e  L ia b ilit y  

P ro v is io n s  

T o t a l  c u r r e n t  l i a b i l i t i e s  

N o n  c u r r e n t  l i a b i l i t i e s  

L e a s e  L ia b ilit y  

P ro v is io n s  

T o t a l  n o n  c u r r e n t  l i a b i l i t i e s  

T o t a l  l i a b i l i t i e s  

N e t  a s s e t s  

E q u i t y  

C o n t r ib u t e d  e q u it y  

R e s e r v e s  

A c c u m u la t e d  P ro fi t s /(L o s s e s ) 

P a r e n t  I n t e r e s t  - C a p i t a l  a n d  R e s e r v e s  

Is s u e d  C a p it a l - N o n -c o n t ro llin g  In t e re s t  

A c c u m u la t e d  P ro fi t s /(L o s s e s ) - N o n -c o n t ro llin g  In t e re s t  

N o n  c o n t r o l l i n g  i n t e r e s t s  

T o t a l  e q u i t y  

C o n s o l i d a t e d

2 0 2 0  
$

7 1 9 ,6 1 5  

5 2 7 ,1 4 3  

2 8 0 ,9 4 1  

2 0 1 9   
$

1 ,8 2 9 ,8 1 7

3 0 7 ,6 2 3

1 ,8 2 2 ,6 4 7

1 ,5 2 7 ,6 9 9  

3 ,9 6 0 ,0 8 7  

7 ,4 9 5 ,5 6 2  

1 0 ,0 2 0 ,0 8 4

- 

5 ,2 9 1 ,1 0 5

4 7 6 ,3 6 3  

-

5 ,5 7 7 ,1 3 1  

5 ,4 6 6 ,4 9 2

N o t e s

6 , 1 8 (b ) 

7  

8  

1 0  

1  

1 1  

1 2 (a ) 

1 2 (b ) 

1 1 ,9 7 1 ,6 5 0  

1 6 ,0 9 1  

-

5 3 ,2 9 8

2 5 ,5 3 6 ,7 9 7  

2 0 ,8 3 0 ,9 7 9  

2 7 ,0 6 4 ,4 9 6  

2 4 ,7 9 1 ,0 6 6  

1 3  

1  

1 4  

1  

1 4  

1 ,7 9 4 ,6 0 8  

5 9 0 ,8 0 0

1 9 7 ,9 5 0  

1 1 2 ,2 9 0  

2 ,1 0 4 ,8 4 8  

2 9 2 ,7 0 0  

4 3 ,3 2 3  

3 3 6 ,0 2 3  

-

1 3 7 ,7 4 0

7 2 8 ,5 4 0

-

4 0 ,8 2 1

4 0 ,8 2 1

2 ,4 4 0 ,8 7 1  

7 6 9 ,3 6 1

2 4 ,6 2 3 ,6 2 5  

2 4 ,0 2 1 ,7 0 5

1 5 (a ) 

1 7  

1 2 8 ,6 2 5 ,9 0 5  

1 2 4 ,1 7 7 ,4 1 9

3 ,5 2 1 ,4 7 6  

6 ,3 9 6 ,9 2 1  

(1 1 2 ,9 3 8 ,2 3 1 ) 

(1 0 6 ,5 5 2 ,6 3 5 ) 

1 9 ,2 0 9 ,1 5 0  

2 4 ,0 2 1 ,7 0 5

5 ,8 0 9 ,5 6 3  

(3 9 5 ,0 8 8 ) 

5 ,4 1 4 ,4 7 5  

-

-

-

2 4 ,6 2 3 ,6 2 5  

2 4 ,0 2 1 ,7 0 5

T h e  a b o v e  S ta te m e n t o f P ro fi t o r L o s s  a n d  O th e r C o m p re h e n s iv e  In c o m e  s h o u ld  b e  re a d  in  c o n ju n c tio n  w ith  th e  a c c o m p a n y in g  N o te s .

M A G N IS  E N E R G Y  T E C H N O L O G IE S   - A N N U A L  R E P O R T  2 0 2 0  

3 9

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
09S t a t e m e n t  o f C h a n g e s  in  E q u it y

Y E A R  E N D E D  3 0  J U N E  2 0 2 0

N o t e s

Is s u e d  
C a p it a l  
$

F V )C I 
R e s e r v e   
$

A t  1  J u ly  2 0 1 9  

1 2 4 ,1 7 7 ,4 1 9

L o s s  fo r  t h e  p re v io u s  
p e r io d

L o s s  fo r  t h e  p e r io d

O t h e r  c o m p re h e n s iv e  
in c o m e /(lo s s )

T o t a l  c o m p r e h e n s i v e  
i n c o m e /(l o s s ) f o r   
t h e  y e a r

T r a n s a c t i o n s   
w i t h  o w n e r s :

C o n t r ib u t io n s  o f  
e q u it y , n e t   
o f t ra n s a c t io n  c o s t s

S h a re  b a s e d  p a y m e n t s

2 8 (a )

F o r fe it u re  o f  
s h a re -b a s e d  p a y m e n t s

N o n -C o n t ro lle d  in t e re s t

R e c la s s ifi c a t io n  fro m  
re s e r v e

-

-

-

-

4 ,4 4 8 ,4 8 6

-

-

-

-

-

-

(2 ,5 2 4 ,5 2 3 )

(2 ,5 2 4 ,5 2 3 )

-

-

-

-

-

S h a r e  
B a s e d  
P a y m e n t  
R e s e r v e s   
$

F o r e ig n  
C u r r e n c y  
T r a n s la t io n  
R e s e r v e  
 $

A c c u m u la t e d  
(lo s s e s )  
$

N o n  
c o n t r o llin g  
In t e r e s t s   
$

T o t a l  
E q u it y   
$

1 ,2 9 0 ,6 4 4

5 ,1 0 6 ,2 7 7

(1 0 6 ,5 5 2 ,6 3 5 )

-

2 4 ,0 2 1 ,7 0 5

-

-

-

-

-

1 ,5 4 8

(1 ,2 2 8 ,9 9 2 )

-

-

-

-

-

(6 3 1 ,0 7 5 )

(6 3 1 ,0 7 5 )

(6 ,9 8 3 ,5 1 3 )

(3 9 5 ,0 8 8 )

(7 ,3 7 8 ,6 0 1 )

8 7 6 ,5 2 2

-

-

(1 ,6 4 8 ,0 0 1 )

8 7 6 ,5 2 2

(6 ,9 8 3 ,5 1 3 )

(1 ,0 2 6 ,1 6 3 )

(9 ,6 5 7 ,6 7 7 )

5 ,8 0 9 ,5 6 3

1 0 ,2 5 8 ,0 4 9

-

-

-

-

-

-

-

1 ,2 2 8 ,9 9 2

-

-

(1 ,0 2 6 ,1 6 3 )

1 ,0 2 6 ,1 6 3

-

-

1 ,5 4 8

-

-

-

A t  3 0  J u n e  2 0 2 0

1 2 8 ,6 2 5 ,9 0 5

(2 ,5 2 4 ,5 2 3 )

6 3 ,2 0 0

5 ,9 8 2 ,7 9 9

(1 1 3 ,3 3 3 ,3 1 9 )

5 ,8 0 9 ,5 6 3

2 4 ,6 2 3 ,6 2 5

N o t e s

Is s u e d  
C a p it a l  
$

F V )C I 
R e s e r v e   
$

S h a r e  
B a s e d  
P a y m e n t  
R e s e r v e s   
$

F o r e ig n  
C u r r e n c y  
T r a n s la t io n  
R e s e r v e   
$

A c c u m u la t e d  
(lo s s e s )  
$

N o n  
c o n t r o llin g  
In t e r e s t s   
$

T o t a l  
E q u it y  
 $

A t  1  J u l y  2 0 1 8  

1 1 0 ,6 3 7 ,5 2 3

-

2 ,1 7 1 ,5 0 7

4 ,8 6 5 ,4 4 6

(1 0 1 ,8 4 0 ,9 3 2 )

-

1 5 ,8 3 3 ,5 4 4

L o s s  fo r  t h e  p e r io d

O t h e r  c o m p re h e n s iv e   
in c o m e /(lo s s )

T o t a l  c o m p r e h e n s i v e   
i n c o m e /(l o s s ) f o r   
t h e  y e a r

T r a n s a c t i o n s   
w i t h  o w n e r s :

C o n t r ib u t io n s  o f e q u it y ,  
n e t  o f t ra n s a c t io n  c o s t s

S h a re  b a s e d  p a y m e n t s

2 8 (a )

F o r fe it u re  o f s h a re -b a s e d  
p a y m e n t s

R e c la s s ifi c a t io n  fro m  
re s e r v e

-

-

-

1 3 ,4 7 4 ,9 8 3

6 4 ,9 1 3

A t  3 0  J u n e  2 0 1 9

1 2 4 ,1 7 7 ,4 1 9

R e c la s s ifi c a t io n  fro m  
re s e r v e

-

-

-

-

-

-

-

-

-

-

-

-

2 1 ,9 0 0

(8 3 7 ,8 5 0 )

(6 4 ,9 1 3 )

-

(5 ,5 4 9 ,5 5 3 )

(5 ,5 4 9 ,5 5 3 )

2 4 0 ,8 3 1

-

2 4 0 ,8 3 1

2 4 0 ,8 3 1

(5 ,5 4 9 ,5 5 3 )

-

(5 ,3 0 8 ,7 2 2 )

-

-

-

-

-

-

8 3 7 ,8 5 0

-

1 ,2 9 0 ,6 4 4

5 ,1 0 6 ,2 7 7

(1 0 6 ,5 5 2 ,6 3 5 )

-

-

-

-

-

-

-

-

-

1 3 ,4 7 4 ,9 8 3

2 1 ,9 0 0

-

-

2 4 ,0 2 1 ,7 0 5

-

A t  3 0  J u n e  2 0 2 0

1 2 8 ,6 2 5 ,9 0 5

(2 ,5 2 4 ,5 2 3 )

6 3 ,2 0 0

5 ,9 8 2 ,7 9 9

(1 1 3 ,3 3 3 ,3 1 9 )

5 ,8 0 9 ,5 6 3

2 4 ,6 2 3 ,6 2 5

T h e  a b o v e  S ta te m e n t o f C h a n g e s  in  E q u it y  s h o u ld  b e  re a d  in  c o n ju n c tio n  w ith  th e  a c c o m p a n y in g  N o te s .

4 0  

A N N U A L  R E P O R T  2 0 2 0  - M A G N IS  E N E R G Y  T E C H N O L O G IE S

 
 
 
 
 
 
 
 
 
 
 
 
 
 
10S t a t e m e n t  o f C a s h  F lo w s

Y E A R  E N D E D  3 0  J U N E  2 0 2 0

C a s h  fl o w s  f r o m  o p e r a t i n g  a c t i v i t i e s  

P a y m e n ts  to  s u p p lie rs  a n d  e m p lo y e e s  

P a y m e n t o f e x p lo ra tio n  e x p e n d itu re  

P a y m e n t fo r d e v e lo p m e n t a s s e ts  

In te re s t re c e iv e d  

G o v e rn m e n t G ra n ts  a n d  A s s is ta n c e  

R &D  g ra n t 

C o n s o l i d a t e d

2 0 2 0  
 $

2 0 1 9   
 $

N o t e s

(4 ,4 0 2 ,3 5 8 ) 

(3 ,8 7 4 ,2 1 9 )

(1 ,0 0 9 ,5 8 2 ) 

(1 ,5 5 9 ,0 1 5 )

(8 ,9 9 8 ) 

(4 2 5 ,0 7 7 )

6 ,6 9 8  

6 2 ,2 2 7

7 1 ,0 0 0  

1 1 6 ,3 8 5  

2 1 0 ,6 8 4

N e t  c a s h  u s e d  i n  o p e r a t i n g  a c t i v i t i e s  

1 8 (a ) 

(5 ,2 2 6 ,8 5 5 ) 

(5 ,5 8 5 ,4 0 0 )

C a s h  fl o w s  f r o m  i n v e s t i n g  a c t i v i t i e s  

A c q u is itio n  o f p la n t & e q u ip m e n t 

A c q u is itio n  o f in te re s t in  a s s o c ia te  

A c q u is itio n  o f in te re s t in  fi n a n c ia l a s s e t 

P ro c e e d s  fro m  s a le  o f p ro p e r ty, p la n t a n d  e q u ip m e n t 

P a y m e n t o f lo a n  to  re la te d  p a r tie s  

N e t  c a s h  fl o w s  u s e d  i n  i n v e s t i n g  a c t i v i t i e s  

C a s h  fl o w s  f r o m  fi n a n c i n g  a c t i v i t i e s  

P ro c e e d s  fro m  is s u e s /s a le  o f o rd in a r y  s h a re s  a n d  o p tio n s  

R e p a y m e n t o f le a s e  lia b ilitie s  

C a p ita l ra is in g  e x p e n s e s  

N e t  c a s h  fl o w s  f r o m  fi n a n c i n g  a c t i v i t i e s  

(2 ,1 7 6 ) 

(1 2 ,4 6 1 )

(8 5 6 ,2 2 2 ) 

(1 ,5 7 1 ,6 0 2 )

(2 7 ,2 2 2 ) 

(1 ,3 9 3 ,5 9 2 )

4 9 3 ,3 1 1  

-

1 5 6 ,3 5 1  

(1 ,8 2 9 ,0 7 3 )

(2 3 5 ,9 5 8 ) 

(4 ,8 0 6 ,7 2 8 )

4 ,3 7 6 ,8 3 3  

1 1 ,4 0 0 ,0 0 0

(4 4 ,5 0 4 ) 

1 1 ,4 0 0 ,0 0 0

1 9 ,5 8 8  

(7 0 2 ,7 9 5 )

4 ,3 5 1 ,9 1 7  

1 0 ,6 9 7 ,2 0 5  

N e t  i n c r e a s e /(d e c r e a s e ) i n  c a s h  a n d  c a s h  e q u i v a l e n t s  

(1 ,1 1 0 ,8 9 6 ) 

3 0 5 ,0 7 7

N e t fo re ig n  e x c h a n g e  d iff e re n c e s  

A d d  o p e n in g  c a s h  a n d  c a s h  e q u iv a le n ts  – iM 3 N Y  

A d d  o p e n in g  c a s h  a n d  c a s h  e q u iv a le n ts  

C l o s i n g  c a s h  a n d  c a s h  e q u i v a l e n t s  

(5 ,3 3 6 ) 

6 ,0 3 0  

8 5 4

-

1 ,8 2 9 ,8 1 7  

1 ,5 2 3 ,8 8 6

1 8 (b ) 

7 1 9 ,6 1 5  

1 ,8 2 9 ,8 1 7  

T h e  a b o v e  S ta te m e n t o f C a s h  F lo w s  s h o u ld  b e  re a d  in  c o n ju n c tio n  w ith  th e  a c c o m p a n y in g  N o te s .

M A G N IS  E N E R G Y  T E C H N O L O G IE S   - A N N U A L  R E P O R T  2 0 2 0  

4 1

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
11N o t e s  t o  t h e  F in a n c ia l S t a t e m e n t s

Y E A R  E N D E D  3 0  J U N E  2 0 2 0

1 .  S U M M A R Y  O F  S I G N I F I C A N T  A C C O U N T I N G  P O L I C I E S

T h e  p r in c ip a l a c c o u n t in g  p o lic ie s  a d o p t e d  in  t h e  p re p a r a t io n  o f t h e  fi n a n c ia l re p o r t  a re  s e t  o u t  b e lo w . T h e  fi n a n c ia l re p o r t  
c o v e r s  t h e  c o n s o lid a t e d  g ro u p  o f M a g n is  E n e r g y  Te c h n o lo g ie s  L im it e d  a n d  c o n t ro lle d  e n t it ie s  (“t h e  G ro u p ”). M a g n is  
E n e rg y  Te c h n o lo g ie s  L im it e d  is  a  c o m p a n y , lim it e d  b y  s h a re s , in c o r p o r a t e d  in  A u s t r a lia  w h o s e  s h a re s  a re  p u b lic ly  t r a d e d  o n  
A u s t r a lia n  S e c u r it ie s  E x c h a n g e  (“A S X ”).

T h e  fo llo w in g  is  a  s u m m a r y  o f t h e  m a t e r ia l a c c o u n t in g  p o lic ie s  a d o p t e d  b y  t h e  c o n s o lid a t e d  G ro u p  in  t h e  p re p a r a t io n  o f 
t h e  fi n a n c ia l re p o r t . T h e  a c c o u n t in g  p o lic ie s  h a v e  b e e n  c o n s is t e n t ly  a p p lie d  t o  a ll y e a r s  p re s e n t e d , u n le s s  o t h e r w is e  s t a t e d .

B A S I S  O F  P R E P A R A T I O N

T h e s e  g e n e r a l p u r p o s e  fi n a n c ia l s t a t e m e n t  h a v e  b e e n  p re p a re d  in  a c c o rd a n c e  w it h  A u s t r a lia n  A c c o u n t in g  S t a n d a rd s  
a n d  In t e r p re t a t io n s  is s u e d  b y  t h e  A u s t r a lia n  A c c o u n t in g  S t a n d a rd s  B o a rd  [“A A S B ’] a n d  t h e  C o r p o r a t io n s  A c t  2 0 0 1 , a s  
a p p ro p r ia t e  fo r  -p ro fi t  o r ie n t a t e d  e n t it ie s .

[i ] S t a t e m e n t  o f  C o m p l i a n c e

T h e s e  fi n a n c ia l s t a t e m e n t s  a ls o  c o m p ly  w it h  In t e r n a t io n a l F in a n c ia l R e p o r t in g  S t a n d a rd s  [“IF R S ”] a s  is s u e d  b y  t h e  
In t e r n a t io n a l A c c o u n t in g  S t a n d a rd s  B o a rd  [“IA S B ”]

[i i ] H i s t o r i c a l  c o s t  c o n v e n t i o n

T h e  fi n a n c ia l re p o r t  h a s  b e e n  p re p a re d  o n  a n  a c c r u a l b a s is  u n d e r  t h e  h is t o r ic a l c o s t  c o n v e n t io n , a s  m o d ifi e d  b y  t h e  
re v a lu a t io n  o f s e le c t e d  n o n -c u r re n t  a s s e t s , fi n a n c ia l a s s e t s  a n d  fi n a n c ia l lia b ilit ie s  fo r  w h ic h  t h e  fa ir  v a lu e  b a s is  o f 
a c c o u n t in g  h a s  b e e n  a p p lie d .

[i i i ] C r i t i c a l  a c c o u n t i n g  e s t i m a t e s

T h e  p re p a r a t io n  o f fi n a n c ia l s t a t e m e n t s  re q u ire s  t h e  u s e  o f c e r t a in  c r it ic a l a c c o u n t in g  e s t im a t e s . It  a ls o  re q u ire s  
m a n a g e m e n t  t o  e x e rc is e  it s  ju d g e m e n t  in  t h e  p ro c e s s  o f a p p ly in g  t h e  G ro u p ’s  a c c o u n t in g  p o lic ie s . T h e  a re a s  in v o lv in g  
a  h ig h e r  d e g re e  o f ju d g e m e n t  o r  c o m p le x it y , o r  a re a s  w h e re  a s s u m p t io n s  a n d  e s t im a t e s  a re  s ig n ifi c a n t  t o  t h e  fi n a n c ia l 
s t a t e m e n t s  a re  d is c lo s e d  in  N o t e  2 . 

T h e  fi n a n c ia l re p o r t  is  p re p a re d  in  A u s t r a lia n  d o lla r s .

G O I N G  C O N C E R N

T h e  G ro u p  h a s  a  m u lt i s t r a t e g y  b u s in e s s  o f lit h iu m -io n  b a t t e r y  t e c h n o lo g y  m a n u fa c t u r in g  in  t h e  U S A  a n d  A u s t r a lia  
c o m b in e d  w it h  p re -m in e  d e v e lo p m e n t  o f it s  N a c h u  G r a p h it e  p ro je c t  in  T a n z a n ia . T h e  G ro u p  is  c o m m it t e d  t o  m in im u m  
e x p e n d it u re  re q u ire m e n t s  in  re la t io n  t o  it s  N a c h u  t e n e m e n t s .

F o r  t h e  y e a r  e n d e d  3 0  J u n e  2 0 2 0 , t h e  G ro u p  re p o r t e d  a  n e t  lo s s  o f $ 7 ,3 7 8 ,6 0 1  (2 0 1 9 : $ 5 ,5 4 9 ,5 5 3 ) a n d  n e t  o p e r a t in g  
c a s h  o u t fl o w s  o f $ 5 ,2 2 6 ,8 5 3  (2 0 1 9 : $ 5 ,5 8 5 ,4 0 0 ). T h e  o p e r a t in g  c a s h  o u t fl o w s  h a v e  b e e n  fu n d e d  b y  c a s h  in fl o w s  fro m  
e q u it y  r a is in g s  o f $ 4 ,3 7 6 ,8 3 3  (2 0 1 9 : $ 1 1 ,4 0 0 ,0 0 0 ) d u r in g  t h e  y e a r. A s  a t  3 0  J u n e  2 0 2 0  t h e  G ro u p  h a d  n e t  c u r re n t  a s s e t s  o f 
($ 7 2 8 ,1 2 6 ) (2 0 1 9 : $ 3 ,2 3 1 ,5 4 7 ) in c lu d in g  c a s h  re s e r v e s  o f $ 7 1 9 ,6 1 5  (2 0 1 9 : $ 1 ,8 2 9 ,8 1 7 ).

S u b s e q u e n t  t o  y e a r  e n d , M a g n is  a n n o u n c e d  it  h a d  re c e iv e d  c o m m it m e n t s  fo r  a  p la c e m e n t  o f 4 5  m illio n  fu lly  p a id  o rd in a r y  
s h a re s  a t  $ 0 .1 7  p e r  s h a re  t o  p ro fe s s io n a l, s o p h is t ic a t e d , a n d  in s t it u t io n a l in v e s t o r s  t o  r a is e  A $ 7 .6 5  m illio n  v ia  a  p la c e m e n t . 
O f t h e  4 5  m illio n  s h a re s  o r ig in a lly  c o m m it t e d , 4 2 ,0 5 8 ,5 7 7  w e re  is s u e d . A  fu r t h e r  2 ,9 4 1 ,1 7 6  s h a re s  w e re  s u b s c r ib e d  fo r  
b y  M r  J a m e s  D a c k  w h ic h  w ill re q u ire  s h a re h o ld e r  a p p ro v a l a t  t h e  C o m p a n y ’s  2 0 2 0  A G M  b e fo re  t h e y  c a n  b e  is s u e d . T h e  
re s id u a l 2 4 7  le s s  s h a re s  in t e n d e d  fo r  is s u e  w e re  n o t  is s u e d  d u e  t o  u n fo re s e e n  b a n k in g  t r a n s a c t io n  c h a rg e s  in c u r re d  b y  
s h a re  a p p lic a n t s . To t a l fu n d s  r a is e d  w ill b e  u s e d  t o  s t re n g t h e n  t h e  b a la n c e  s h e e t  t o  a llo w  M a g n is  t o  c a p it a lis e  o n  c u r re n t  
a n d  fu t u re  g ro w t h  o p p o r t u n it ie s  in  t h e  b a t t e r y  t e c h n o lo g y  s e c t o r  a n d  t o  fu n d  t h e  o n g o in g  in v e s t m e n t  in  t h e  fu t u re  
d e v e lo p m e n t  o f t h e  C o m p a n y ’s  1 0 0 %  o w n e d  N a c h u  G r a p h it e  P ro je c t . M a g n is  fu r t h e r  a n n o u n c e d  o n  8  S e p t e m b e r  2 0 2 0  it  
h a d  t e r m in a t e d  t h e  N e g m a  S u b s c r ip t io n  A g re e m e n t  fo llo w in g  t h e  a n n o u n c e m e n t  o n  4  S e p t e m b e r  2 0 2 0  o f t h e  C o m p a n y ’s  
s u c c e s s fu l c a p it a l r a is in g .

4 2  

A N N U A L  R E P O R T  2 0 2 0  - M A G N IS  E N E R G Y  T E C H N O L O G IE S

A s  s u c h , t h e  fi n a n c ia l s t a t e m e n t s  h a v e  b e e n  p re p a re d  o n  a  g o in g  c o n c e r n  b a s is  w h ic h  c o n t e m p la t e s  t h e  c o n t in u it y  o f 
n o r m a l b u s in e s s  a c t iv it ie s , fu r t h e r  s h a re  p la c e m e n t s  a n d  t h e  re a lis a t io n  o f a s s e t s  a n d  s e t t le m e n t  o f lia b ilit ie s  in  t h e  o rd in a r y  
c o u r s e  o f b u s in e s s .

In  t h e  e v e n t  t h a t  t h e  a s s u m p t io n s  u n d e r p in n in g  t h e  b a s is  o f p re p a r a t io n  d o  n o t  o c c u r  a s  a n t ic ip a t e d , t h e re  is  m a t e r ia l 
u n c e r t a in t y  t h a t  m a y  c a s t  s ig n ifi c a n t  d o u b t  w h e t h e r  t h e  G ro u p  w ill c o n t in u e  t o  o p e r a t e  a s  a  g o in g  c o n c e r n . If t h e  G ro u p  is  
u n a b le  t o  c o n t in u e  a s  a  g o in g  c o n c e r n  it  m a y  b e  re q u ire d  t o  re a lis e  it s  a s s e t s  a n d  e x t in g u is h  it s  lia b ilit ie s  o t h e r  t h a n  in  t h e  
n o r m a l c o u r s e  o f b u s in e s s  a n d  a t  a m o u n t s  d iff e re n t  t o  t h o s e  s t a t e d  in  t h e  fi n a n c ia l s t a t e m e n t s .

N o  a d ju s t m e n t s  h a v e  b e e n  m a d e  t o  t h e  fi n a n c ia l re p o r t  re la t in g  t o  t h e  re c o v e r a b ilit y  a n d  c la s s ifi c a t io n  o f t h e  a s s e t  c a r r y in g  
a m o u n t s  o r  t h e  c la s s ifi c a t io n  o f lia b ilit ie s  t h a t  m ig h t  b e  n e c e s s a r y  s h o u ld  t h e  G ro u p  n o t  c o n t in u e  a s  a  g o in g  c o n c e r n .

T h e  fi n a n c ia l s t a t e m e n t s  w e re  a u t h o r is e d  fo r  is s u e  b y  t h e  d ire c t o r s  o n  3 0  S e p t e m b e r  2 0 2 0 .

N E W  A C C O U N T I N G  S T A N D A R D S  A N D  I N T E R P R E T A T I O N S

(i ) N e w  a n d  a m e n d e d  s t a n d a r d s  a d o p t e d  b y  t h e  G r o u p

T h e  a c c o u n t in g  p o lic ie s  a d o p t e d  a re  c o n s is t e n t  w it h  t h o s e  o f t h e  p re v io u s  fi n a n c ia l y e a r  e x c e p t  a s  fo llo w s :

A A S B  1 6  ‘L E A S E S ’

 (a ) N a t u r e  o f  t h e  e ff e c t  o f  a d o p t i o n  o f  A A S B  1 6

T h e  G ro u p  a p p lie d  t h e  m o d ifi e d  re t ro s p e c t iv e  t r a n s it io n  m e t h o d  t o  a d o p t  A A S B  1 6  a n d  t h u s  p r io r  c o m p a r a t iv e s  w e re  n o t  
re s t a t e d .

U n d e r  t h is  m e t h o d , t h e  c u m u la t iv e  e ff e c t  o f in it ia lly  a p p ly in g  t h e  s t a n d a rd  is  re c o g n is e d  d ire c t ly  a s  a n  a d ju s t m e n t  t o  e q u it y  
a t  t h e  d a t e  o f in it ia l a p p lic a t io n , 1  J u ly  2 0 1 9 . T h e  G ro u p  e le c t e d  t o  u s e  t h e  re c o g n it io n  e x e m p t io n s  fo r  le a s e  c o n t r a c t s  t h a t  
h a v e  a  le a s e  t e r m  o f 1 2  m o n t h s  o r  le s s  a n d  d o  n o t  c o n t a in  a  p u rc h a s e  o p t io n  (‘s h o r t -t e r m  le a s e s ’), a n d  le a s e  c o n t r a c t s  fo r  
w h ic h  t h e  u n d e r ly in g  a s s e t  is  o f lo w  v a lu e  (‘lo w -v a lu e  a s s e t s ’).

T h e  G ro u p  h a s  le a s e  c o n t r a c t s  fo r  it s  h e a d  o ffi c e s  in  A u s t r a lia  a n d  T a n z a n ia . P r io r  t o  t h e  a d o p t io n  o f A A S B  1 6 , t h e  G ro u p  
c la s s ifi e d  e a c h  o f it s  le a s e s  a t  t h e  in c e p t io n  d a t e  a s  o p e r a t in g  le a s e s . O p e r a t in g  le a s e s  w e re  n o t  c a p it a lis e d , a n d  t h e  le a s e  
p a y m e n t s  w e re  re c o g n is e d  a s  re n t  e x p e n s e  in  t h e  p ro fi t  o r  lo s s  o n  a  s t r a ig h t -lin e  b a s is  o v e r  t h e  le a s e  t e r m .

O n  a d o p t io n  o f A A S B  1 6 , t h e  G ro u p  a p p lie d  a  s in g le  re c o g n it io n  a n d  m e a s u re m e n t  a p p ro a c h  fo r  a ll le a s e s , e x c e p t  s h o r t -
t e r m  le a s e s  a n d  le a s e s  o f lo w -v a lu e  a s s e t s . T h e  G ro u p  h a s  e le c t e d  t o  p re s e n t  r ig h t -o f-u s e  a s s e t s  a n d  le a s e  lia b ilit ie s  
s e p a r a t e ly  in  t h e  s t a t e m e n t  o f fi n a n c ia l p o s it io n . O n  t r a n s it io n , n o  r ig h t -o f-u s e  a s s e t  o r  le a s e  lia b ilit y  w a s  re c o g n is e d  d u e  
t o  t h e  re c o g n it io n  e x e m p t io n s  o f e x c lu d in g  s h o r t -t e r m  le a s e s . S u b s e q u e n t  t o  t r a n s it io n , le a s e  lia b ilit ie s  w e re  re c o g n is e d  
b a s e d  o n  t h e  p re s e n t  v a lu e  o f t h e  re m a in in g  le a s e  p a y m e n t s , d is c o u n t e d  u s in g  t h e  in c re m e n t a l b o r ro w in g  r a t e  a t  t h e  d a t e  
o f in it ia l a p p lic a t io n . T h e  w e ig h t e d -a v e r a g e  d is c o u n t  r a t e  a p p lie d  w a s  5 .5 % .

A A S B  1 6  w a s  a d o p t e d  u s in g  t h e  m o d ifi e d  re t ro s p e c t iv e  a p p ro a c h  a n d  a s  s u c h  t h e  c o m p a r a t iv e s  h a v e  n o t  re s t a t e d . T h e  
im p a c t  o f t h e  a d o p t io n  is  s u m m a r is e d  a s  fo llo w s :

M A G N IS  E N E R G Y  T E C H N O L O G IE S   - A N N U A L  R E P O R T  2 0 2 0  

4 3

N o t e s  t o  t h e  F in a n c ia l S t a t e m e n t s

L e a s e  l i a b i l i t i e s

O p e ra tin g  le a s e  c o m m itm e n ts  d is c lo s e d  a s  a t 3 0  J u n e  2 0 2 0  

S h o r t te rm  a n d  lo w  v a lu e  le a s e  c o m m itm e n ts  a s  a t 3 0  J u n e  2 0 2 0  

D is c o u n te d  u s in g  th e  c o m p a n y ’s  in c re m e n ta l b o rro w in g  ra te  o f 5 .5 %  

L e a s e  lia b ility  re c o g n is e d  a s  a t 1  J u ly  2 0 1 9  

R e c o n c i l i a t i o n  o f  m o v e m e n t  i n  l e a s e  l i a b i l i t i e s : 

L e a s e  lia b ility  re c o g n is e d  a s  a t 1  J u ly  2 0 1 9  

A d d itio n s   

In te re s t e x p e n s e   

R e p a y m e n t o f le a s e  lia b ilitie s   

To ta l L e a s e  lia b ilitie s  a s  a t 3 0  J u n e  2 0 2 0   

R i g h t -o f -u s e  a s s e t s   

L e a s e  lia b ility  re c o g n is e d  a s  a t 1  J u ly  2 0 1 9   

L e a s e  in c e n tiv e s  re c e iv e d   

R ig h t-o f-u s e  a s s e ts  a s  a t 1  J u ly  2 0 1 9   

R e c o n c i l i a t i o n  o f  m o v e m e n t  i n  r i g h t -o f -u s e  a s s e t s   

R ig h t-o f-u s e  a s s e ts  a s  a t 1  J u ly  2 0 1 9  

A d d itio n s   

D e p re c ia tio n  e x p e n s e   

R ig h t-o f-u s e  a s s e ts  a s  a t 3 0  J u n e  2 0 2 0  

3 0 -J u n e -2 0 2 0  
$

3 0 -J u n e -2 0 1 9  
$

- 

- 

- 

- 

- 

6 1 4 ,6 6 5  

2 4 ,0 3 9  

(1 4 8 ,0 5 4 ) 

(4 9 0 ,6 5 0 ) 

- 

- 

- 

- 

6 1 4 ,8 0 8  

(1 3 8 ,4 4 5 ) 

4 7 6 ,3 6 3  

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

T h e  im p a c t  o f IF R S  1 6  a d o p t io n  o n  c lo s in g  3 0  J u n e  2 0 2 0  re p o r t e d  b a la n c e s  is  s u m m a r is e d  a s  fo llo w s :

A c c o u n t i n g  
u n d e r  n e w   
a c c o u n t i n g  
p o l i c y  (A A S B  
1 6 )

A c c o u n t i n g  
u n d e r  p r e v i o u s   
a c c o u n t i n g  
p o l i c y  (A A S B  
1 6 )

E ff e c t  o f  
c h a n g e  t o  
a c c o u n t i n g  
p o l i c y

S t a t e m e n t  o f  P r o fi t  o r  L o s s  a n d  O t h e r  C o m p r e h e n s i v e  I n c o m e  

O c c u p a n c y  e x p e n s e s  

D e p re c ia tio n  a n d  a m o r tis a tio n  

F in a n c e  e x p e n s e s  

S t a t e m e n t  o f  F i n a n c i a l  P o s i t i o n  

R ig h t-o f-u s e  a s s e ts  

L e a s e  lia b ilitie s  – c u rre n t 

L e a s e  lia b ilitie s  – n o n  c u rre n t 

1 3 0 ,7 0 4  

1 3 4 ,6 3 2  

2 4 ,0 3 9  

2 8 9 ,3 7 5  

4 7 6 ,3 6 3  

(1 9 7 ,9 5 0 ) 

(2 9 2 ,7 0 0 ) 

(1 4 ,2 8 7 ) 

3 0 3 ,6 6 2  

(1 7 2 ,9 5 8 )

- 

- 

1 3 4 ,6 3 2

2 4 ,0 3 9

3 0 3 ,6 6 2  

(1 4 ,2 8 7 )

- 

- 

- 

4 7 6 ,3 6 3

(1 9 7 ,9 5 0 )

(2 9 2 ,7 0 0 )

(1 4 ,2 8 7 )

(1 4 ,2 8 7 )

A c c u m u la te d  lo s s e s  

(1 1 4 ,1 6 7 ,2 2 3 ) 

(1 1 4 ,1 5 2 ,9 3 6 ) 

(b ) S u m m a r y  o f n e w  a c c o u n tin g  p o lic ie s  fo r le a s e s  (a p p lie d  1  J u ly  2 0 1 9 )

4 4  

A N N U A L  R E P O R T  2 0 2 0  - M A G N IS  E N E R G Y  T E C H N O L O G IE S

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
B e lo w  a re  t h e  n e w  a c c o u n t in g  p o lic ie s  o f t h e  G ro u p  u p o n  t h e  a d o p t io n  o f A A S B  1 6  w h ic h  h a v e  b e e n  a p p lie d  fro m  t h e  d a t e  
o f in it ia l a p p lic a t io n :

L E A S E S

T h e  G ro u p  a s s e s s e s  a t  c o n t r a c t  in c e p t io n  w h e t h e r  a  c o n t r a c t  is , o r  c o n t a in s , a  le a s e . T h a t  is , if t h e  c o n t r a c t  c o n t a in s  t h e  r ig h t  
t o  c o n t ro l t h e  u s e  o f a n  id e n t ifi a b le  a s s e t  fo r  a  p e r io d  o f t im e  in  e x c h a n g e  fo r  c o n s id e r a t io n .

R ig h t -o f-u s e -a s s e t s

T h e  G ro u p  re c o g n is e s  r ig h t -o f-u s e  a s s e t s  a t  t h e  c o m m e n c e m e n t  d a t e  o f t h e  le a s e  (i.e . t h e  d a t e  t h e  u n d e r ly in g  a s s e t  is  
a v a ila b le  fo r  u s e ). R ig h t -o f-u s e  a s s e t s  a re  m e a s u re d  a t  c o s t , le s s  a n y  a c c u m u la t e d  d e p re c ia t io n  a n d  im p a ir m e n t  lo s s e s , a n d  
a d ju s t e d  fo r  a n y  re m e a s u re m e n t  o f le a s e  lia b ilit ie s . T h e  c o s t  o f r ig h t -o f-u s e  a s s e t s  in c lu d e s  t h e  a m o u n t  o f le a s e  lia b ilit ie s  
re c o g n is e d , in it ia l d ire c t  c o s t s  in c u r re d , a n d  le a s e  p a y m e n t s  m a d e  a t  o r  b e fo re  t h e  c o m m e n c e m e n t  d a t e  le s s  a n y  le a s e  
in c e n t iv e s  re c e iv e d . U n le s s  t h e  G ro u p  is  re a s o n a b ly  c e r t a in  t o  o b t a in  o w n e r s h ip  o f t h e  le a s e d  a s s e t  a t  t h e  e n d  o f t h e  le a s e  
t e r m , t h e  re c o g n is e d  r ig h t -o f-u s e  a s s e t s  a re  d e p re c ia t e d  o n  a  s t r a ig h t -lin e  b a s is  o v e r  t h e  s h o r t e r  o f it s  e s t im a t e d  u s e fu l lie  
a n d  t h e  le a s e  t e r m . R ig h t -o f-u s e  a s s e t s  a re  s u b je c t  t o  im p a ir m e n t .

L E A S E  L I A B I L I T I E S

A t  t h e  c o m m e n c e m e n t  d a t e  o f t h e  le a s e , t h e  G ro u p  re c o g n is e s  le a s e  lia b ilit ie s  m e a s u re d  a t  t h e  p re s e n t  v a lu e  o f le a s e  
p a y m e n t s  t o  b e  m a d e  o v e r  t h e  le a s e  t e r m . T h e  le a s e  p a y m e n t  in c lu d e s  fi x e d  p a y m e n t s  (in c lu d in g  in -s u b s t a n c e  fi x e d  
p a y m e n t s ) le s s  a n y  le a s e  in c e n t iv e s  re c e iv a b le , v a r ia b le  le a s e  p a y m e n t s  t h a t  d e p e n d  o n  a n  in d e x  o r  a  r a t e , a n d  a m o u n t s  
e x p e c t e d  t o  b e  p a id  u n d e r  re s id u a l v a lu e  g u a r a n t e e s . T h e  le a s e  p a y m e n t s  a ls o  in c lu d e  t h e  e x e rc is e  p r ic e  o f a  p u rc h a s e  
o p t io n  re a s o n a b ly  c e r t a in  t o  b e  e x e rc is e d  b y  t h e  G ro u p  a n d  p a y m e n t s  o f p e n a lt ie s  fo r  t e r m in a t in g  a  le a s e , if t h e  le a s e  
t e r m s  re fl e c t  t h e  G ro u p  e x e rc is in g  t h e  o p t io n  t o  t e r m in a t e . T h e  v a r ia b le  le a s e  p a y m e n t s  t h a t  d o  n o t  d e p e n d  o n  a n  in d e x  o r  
a  r a t e  a re  re c o g n is e d  a s  e x p e n s e  in  t h e  p e r io d  o n  w h ic h  t h e  e v e n t  o r  c o n d it io n  t h a t  t r ig g e re d  t h e  p a y m e n t  o c c u r s .

In  c a lc u la t in g  t h e  p re s e n t  v a lu e  o f t h e  le a s e  p a y m e n t s , t h e  G ro u p  u s e s  t h e  in c re m e n t a l b o r ro w in g  r a t e  a t  t h e  le a s e  
c o m m e n c e m e n t  d a t e  o f t h e  in t e re s t  r a t e  im p lic it  in  t h e  le a s e  is  n o t  re a d ily  d e t e r m in a b le . A f t e r  t h e  c o m m e n c e m e n t  d a t e , 
t h e  a m o u n t  o f le a s e  lia b ilit ie s  is  in c re a s e d  t o  re fl e c t  t h e  a c c re t io n  o f in t e re s t  a n d  re d u c e d  fo r  t h e  le a s e  p a y m e n t s  m a d e . 
In  a d d it io n , t h e  c a r r y in g  a m o u n t  o f le a s e  lia b ilit ie s  is  re m e a s u re d  if t h e re  is  a  m o d ifi c a t io n , a  c h a n g e  in  t h e  le a s e  t e r m , a  
c h a n g e  in  t h e  in -s u b s t a n c e  fi x e d  le a s e  p a y m e n t s  o r  a  c h a n g e  in  t h e  a s s e s s m e n t  t o  p u rc h a s e  t h e  u n d e r ly in g  a s s e t .

S H O R T -T E R M  L E A S E S  A N D  L E A S E S  O F  L O W -V A L U E  A S S E T S

T h e  G ro u p  a p p lie s  t h e  s h o r t -t e r m  le a s e  re c o g n it io n  e x e m p t io n  t o  it s  s h o r t -t e r m  le a s e s . It  a ls o  a p p lie s  t h e  le a s e  o f lo w -v a lu e  
a s s e t s  re c o g n it io n  e x e m p t io n  t o  le a s e s  t h a t  a re  c o n s id e re d  o f lo w  v a lu e . L e a s e  p a y m e n t s  o n  s h o r t -t e r m  le a s e  a n d  le a s e  o f 
lo w -v a lu e  a s s e t s  a re  re c o g n is e d  a s  a n  e x p e n s e  o n  a  s t r a ig h t -lin e  b a s is  o v e r  t h e  le a s e  t e r m .

T h e  G ro u p  h a s  n o t  e le c t e d  t o  e a r ly  a d o p t  a n y  o t h e r  n e w  s t a n d a rd .

(ii) E a r ly  A d o p t io n  o f  S t a n d a r d s

T h e  G ro u p  d id  n o t  a p p ly  t h e  e a r ly  a d o p t io n  o f S t a n d a rd s  fro m  t h e  fi n a n c ia l y e a r  b e g in n in g  o n  1  J u ly  2 0 1 9 . 

(iii) A c c o u n t in g  S t a n d a r d s  a n d  I n t e r p r e t a t io n s  is s u e d  b u t  n o t  y e t  e ff e c t iv e

C O N C E P T U A L  F R A M E W O R K  F O R  F I N A N C I A L  R E P O R T I N G  (C O N C E P T U A L  F R A M E W O R K )

T h e  re v is e d  C o n c e p t u a l F r a m e w o r k  is  a p p lic a b le  t o  a n n u a l re p o r t  p e r io d s  b e g in n in g  o n  o r  a f t e r  1  J a n u a r y  2 0 2 0  a n d  e a r ly  
a d o p t io n  is  p e r m it t e d . T h e  C o n c e p t u a l F r a m e w o r k  c o n t a in s  n e w  d e fi n it io n  a n d  re c o g n it io n  c r it e r ia  a s  w e ll a s  n e w  g u id a n c e  
o n  m e a s u re m e n t  t h a t  a ff e c t s  s e v e r a l A c c o u n t in g  S t a n d a rd s . W h e re  t h e  c o n s o lid a t e d  e n t it y  h a s  re lie d  o n  t h e  e x is t in g  
fr a m e w o r k  in  d e t e r m in in g  it s  a c c o u n t in g  p o lic ie s  fo r  t r a n s a c t io n s , e v e n t s  o r  c o n d it io n s  t h a t  a re  n o t  o t h e r w is e  d e a lt  w it h  
u n d e r  t h e  A u s t r a lia n  A c c o u n t in g  S t a n d a rd s , t h e  c o n s o lid a t e d  e n t it y  m y  n e e d  t o  re v ie w  s u c h  p o lic ie s  u n d e r  t h e  re v is e d  
fr a m e w o r k . A t  t h is  t im e , t h e  a p p lic a t io n  o f t h e  C o n c e p t u a l F r a m e w o r k  is  n o t  e x p e c t e d  t o  h a v e  m a t e r ia l im p a c t  o n  t h e  
c o n s o lid a t e d  e n t it y ’s  fi n a n c ia l s t a t e m e n t s .

E X P L O R A T I O N  A N D  E V A L U A T I O N  C O S T S

E x p lo r a t io n  a n d  e v a lu a t io n  e x p e n d it u re  is  e x p e n s e d  d ire c t ly  t o  p ro fi t  a n d  lo s s  w h e n  in c u r re d . A c c o u n t in g  p o lic ie s  fo r  t h e  
G ro u p ’s  d e v e lo p m e n t  a s s e t s  a re  o u t lin e d  in  N o t e  1 1  ‘D e v e lo p m e n t  A s s e t s ’.

M A G N IS  E N E R G Y  T E C H N O L O G IE S   - A N N U A L  R E P O R T  2 0 2 0  

4 5

 
N o t e s  t o  t h e  F in a n c ia l S t a t e m e n t s

F A I R  V A L U E  M E A S U R E M E N T

W h e n  a n  a s s e t  o r  lia b ilit y , fi n a n c ia l o r  n o n -fi n a n c ia l, is  m e a s u re d  a t  fa ir  v a lu e  fo r  re c o g n it io n  o r  d is c lo s u re  p u r p o s e s , t h e  
fa ir  v a lu e  is  b a s e d  o n  t h e  p r ic e  t h a t  w o u ld  b e  re c e iv e d  t o  s e ll a n  a s s e t  o r  p a id  t o  t r a n s fe r  a  lia b ilit y  in  a n  o rd e r ly  t r a n s a c t io n  
b e t w e e n  m a r k e t  p a r t ic ip a n t s  a t  t h e  m e a s u re m e n t  d a t e ; a n d  a s s u m e s  t h a t  t h e  t r a n s a c t io n  w ill t a k e  p la c e  e it h e r : in  t h e  
p r in c ip a l m a r k e t ; o r  in  t h e  a b s e n c e  o f a  p r in c ip a l m a r k e t , in  t h e  m o s t  a d v a n t a g e o u s  m a r k e t .

F a ir  v a lu e  is  m e a s u re d  u s in g  t h e  a s s u m p t io n s  t h a t  m a r k e t  p a r t ic ip a n t s  w o u ld  u s e  w h e n  p r ic in g  t h e  a s s e t  o r  lia b ilit y , 
a s s u m in g  t h e y  a c t  in  t h e ir  e c o n o m ic  b e s t  in t e re s t s . F o r  n o n -fi n a n c ia l a s s e t s , t h e  fa ir  v a lu e  m e a s u re m e n t  is  b a s e d  o n  it s  
h ig h e s t  a n d  b e s t  u s e . V a lu a t io n  t e c h n iq u e s  t h a t  a re  a p p ro p r ia t e  in  t h e  c irc u m s t a n c e s  a n d  fo r  w h ic h  s u ffi c ie n t  d a t a  a re  
a v a ila b le  t o  m e a s u re  fa ir  v a lu e , a re  u s e d , m a x im is in g  t h e  u s e  o f re le v a n t  o b s e r v a b le  in p u t s  a n d  m in im is in g  t h e  u s e  o f 
u n o b s e r v a b le  in p u t s

A s s e t s  a n d  lia b ilit ie s  m e a s u re d  a t  fa ir  v a lu e  a re  c la s s ifi e d  in t o  t h re e  le v e ls , u s in g  a  fa ir  v a lu e  h ie r a rc h y  t h a t  re fl e c t s  t h e  
s ig n ifi c a n c e  o f t h e  in p u t s  u s e d  in  m a k in g  t h e  m e a s u re m e n t s . C la s s ifi c a t io n s  a re  re v ie w e d  a t  e a c h  re p o r t in g  d a t e  a n d  
t r a n s fe r s  b e t w e e n  le v e ls  a re  d e t e r m in e d  b a s e d  o n  a  re a s s e s s m e n t  o f t h e  lo w e s t  le v e l o f in p u t  t h a t  is  s ig n ifi c a n t  t o  t h e  fa ir  
v a lu e  m e a s u re m e n t .

F o r  re c u r r in g  a n d  n o n -re c u r r in g  fa ir  v a lu e  m e a s u re m e n t s , e x t e r n a l v a lu e r s  m a y  b e  u s e d  w h e n  in t e r n a l e x p e r t is e  is  e it h e r  
n o t  a v a ila b le  o r  w h e n  t h e  v a lu a t io n  is  d e e m e d  t o  b e  s ig n ifi c a n t . E x t e r n a l v a lu e r s  a re  s e le c t e d  b a s e d  o n  m a r k e t  k n o w le d g e  
a n d  re p u t a t io n . W h e re  t h e re  is  a  s ig n ifi c a n t  c h a n g e  in  fa ir  v a lu e  o f a n  a s s e t  o r  lia b ilit y  fro m  o n e  p e r io d  t o  a n o t h e r, a n  
a n a ly s is  is  u n d e r t a k e n , w h ic h  in c lu d e s  a  v e r ifi c a t io n  o f t h e  m a jo r  in p u t s  a p p lie d  in  t h e  la t e s t  v a lu a t io n  a n d  a  c o m p a r is o n , 
w h e re  a p p lic a b le , w it h  e x t e r n a l s o u rc e s  o f d a t a .

G O O D S  A N D  S E R V I C E S  T A X  (G S T  A N D /O R  V A T )

R e v e n u e s , e x p e n s e s , a n d  a s s e t s  a re  re c o g n is e d  n e t  o f t h e  a m o u n t  o f G S T /VA T  e x c e p t :

> 

  w h e re  t h e  G S T /VA T  in c u r re d  o n  a  p u rc h a s e  o f g o o d s  a n d  s e r v ic e s  is  n o t  re c o v e r a b le  fro m  t h e  t a x a t io n  a u t h o r it y , in  
w h ic h  c a s e  t h e  G S T /VA T  is  re c o g n is e d  a s  p a r t  o f t h e  c o s t  o f a c q u is it io n  o f t h e  a s s e t  o r  a s  p a r t  o f t h e  e x p e n s e  it e m  a s  
a p p lic a b le ; a n d

> 

  re c e iv a b le s  a n d  p a y a b le s  a re  s t a t e d  w it h  t h e  a m o u n t  o f G S T /VA T  in c lu d e d .

T h e  n e t  a m o u n t  o f G S T /VA T  re c o v e r a b le  fro m , o r  p a y a b le  t o , t h e  t a x a t io n  a u t h o r it y  is  in c lu d e d  a s  p a r t  o f re c e iv a b le s  o r  
p a y a b le s  in  t h e  s t a t e m e n t  o f fi n a n c ia l p o s it io n .

C a s h  fl o w s  a re  in c lu d e d  in  t h e  S t a t e m e n t  o f C a s h  F lo w s  o n  a  g ro s s  b a s is  a n d  t h e  G S T /VA T  c o m p o n e n t  o f c a s h  fl o w s  a r is in g  
fro m  in v e s t in g  a n d  fi n a n c in g  a c t iv it ie s , w h ic h  is  re c o v e r a b le  fro m , o r  p a y a b le  t o , t h e  t a x a t io n  a u t h o r it y , a re  c la s s ifi e d  a s  
o p e r a t in g  c a s h  fl o w s .

C o m m it m e n t s  a n d  c o n t in g e n c ie s  a re  d is c lo s e d  n e t  o f t h e  a m o u n t  o f G S T /VA T  re c o v e r a b le  fro m , o r  p a y a b le  t o , t h e   
t a x a t io n  a u t h o r it y .

W it h h o ld in g  t a x  a n d  o t h e r  in d ire c t  t a x e s  a re  in c u r re d  o n  a m o u n t s  o f VA T  re c o v e r a b le  fro m , o r  p a y a b le  t o , t h e   
t a x a t io n  a u t h o r it y .

F O R E I G N  C U R R E N C Y  T R A N S L A T I O N

F u n c t io n a l a n d  p r e s e n t a t io n  c u r r e n c y

T h e  fu n c t io n a l c u r re n c y  o f e a c h  o f t h e  G ro u p ’s  e n t it ie s  is  m e a s u re d  u s in g  t h e  c u r re n c y  o f t h e  p r im a r y  e c o n o m ic  
e n v iro n m e n t  in  w h ic h  t h a t  e n t it y  o p e r a t e s . T h e  c o n s o lid a t e d  fi n a n c ia l s t a t e m e n t s  a re  p re s e n t e d  in  A u s t r a lia n  d o lla r s  w h ic h  
is  t h e  p a re n t  e n t it y ’s  fu n c t io n a l a n d  p re s e n t a t io n  c u r re n c y .

T r a n s a c t io n s  a n d  b a la n c e s

F o re ig n  c u r re n c y  t r a n s a c t io n s  a re  t r a n s la t e d  in t o  fu n c t io n a l c u r re n c y  u s in g  t h e  e x c h a n g e  r a t e s  p re v a ilin g  a t  t h e  d a t e  o f 
t h e  t r a n s a c t io n . F o re ig n  c u r re n c y  m o n e t a r y  it e m s  a re  re -t r a n s la t e d  a t  t h e  y e a r -e n d  e x c h a n g e  r a t e . N o n -m o n e t a r y  it e m s  

4 6  

A N N U A L  R E P O R T  2 0 2 0  - M A G N IS  E N E R G Y  T E C H N O L O G IE S

m e a s u re d  a t  h is t o r ic a l c o s t  c o n t in u e  t o  b e  c a r r ie d  a t  t h e  e x c h a n g e  r a t e  a t  t h e  d a t e  o f t h e  t r a n s a c t io n . N o n -m o n e t a r y  it e m s  
m e a s u re d  a t  fa ir  v a lu e  a re  re p o r t e d  a t  t h e  e x c h a n g e  r a t e  a t  t h e  d a t e  w h e n  fa ir  v a lu e s  w e re  d e t e r m in e d .

E x c h a n g e  d iff e re n c e s  a r is in g  o n  t h e  t r a n s la t io n  o f m o n e t a r y  it e m s  a re  re c o g n is e d  in  p ro fi t  o r  lo s s .

F in a n c ia l s t a t e m e n t s  o f  f o r e ig n  o p e r a t io n s

T h e  fi n a n c ia l re s u lt s  a n d  p o s it io n  o f fo re ig n  o p e r a t io n s  w h o s e  fu n c t io n a l c u r re n c y  is  n o t  A u s t r a lia n  d o lla r s , t h e  G ro u p ’s  
p re s e n t a t io n  c u r re n c y , a re  t r a n s la t e d  a s  fo llo w s :

> 

> 

   a s s e t s  a n d  lia b ilit ie s  a re  t r a n s la t e d  a t  y e a r -e n d  e x c h a n g e  r a t e s  p re v a ilin g  a t  t h a t  re p o r t in g  d a t e

 in c o m e  a n d  e x p e n s e s  a re  t r a n s la t e d  a t  a v e r a g e  e x c h a n g e  r a t e s  fo r  e a c h  m o n t h  d u r in g  t h e  p e r io d .

E x c h a n g e  d iff e re n c e s  a r is in g  o n  t r a n s la t io n  o f fo re ig n  o p e r a t io n s  a re  t r a n s fe r re d  d ire c t ly  t o  t h e  G ro u p ’s  fo re ig n  c u r re n c y  
t r a n s la t io n  re s e r v e  in  o t h e r  c o m p re h e n s iv e  in c o m e . T h e s e  d iff e re n c e s  a re  re c o g n is e d  in  t h e  s t a t e m e n t  o f c o m p re h e n s iv e  
in c o m e  in  t h e  p e r io d  in  w h ic h  t h e  o p e r a t io n  is  d is p o s e d .

E M P L O Y E E  B E N E F I T S

P ro v is io n  is  m a d e  fo r  e m p lo y e e  b e n e fi t s  a c c u m u la t e d  a s  a  re s u lt  o f e m p lo y e e s  re n d e r in g  s e r v ic e s  u p  t o  t h e  re p o r t in g  d a t e . 
T h e s e  b e n e fi t s  in c lu d e  w a g e s  a n d  s a la r ie s , a n n u a l le a v e , a n d  lo n g  s e r v ic e  le a v e  w h e n  it  is  p ro b a b le  t h a t  s e t t le m e n t  w ill b e  
re q u ire d .

L ia b ilit ie s  a r is in g  in  re s p e c t  o f w a g e s  a n d  s a la r ie s , a n n u a l le a v e  a n d  a n y  o t h e r  e m p lo y e e  b e n e fi t s  e x p e c t e d  t o  b e  s e t t le d  
w it h in  t w e lv e  m o n t h s  o f t h e  re p o r t in g  d a t e  a re  m e a s u re d  a t  t h e ir  n o m in a l a m o u n t s  b a s e d  o n  re m u n e r a t io n  r a t e s   
w h ic h  a re  e x p e c t e d  t o  b e  p a id  w h e n  t h e  lia b ilit y  is  s e t t le d  in c lu d in g  re la t e d  o n -c o s t s , s u c h  a s  w o r k e r s  c o m p e n s a t io n   
a n d  p a y ro ll t a x .

R E V E N U E  R E C O G N I T I O N

In t e re s t  re v e n u e  is  re c o g n is e d  a s  in t e re s t  a c c r u e s  u s in g  t h e  e ff e c t iv e  in t e re s t  m e t h o d .

C O N T R I B U T E D  E Q U I T Y

O rd in a r y  s h a re s  a re  c la s s ifi e d  a s  e q u it y . A n y  t r a n s a c t io n  c o s t s  a r is in g  o n  t h e  is s u e  o f o rd in a r y  s h a re s  a re  re c o g n is e d  d ire c t ly  
in  e q u it y  a s  a  re d u c t io n  o f t h e  s h a re  p ro c e e d s  re c e iv e d .

R E S T A T E M E N T  O F  C O M P A R A T I V E S

W h e n  re q u ire d  b y  a c c o u n t in g  s t a n d a rd s , c o m p a r a t iv e  fi g u re s  h a v e  b e e n  a d ju s t e d  t o  c o n fo r m  t o  c h a n g e s  in  p re s e n t a t io n  
fo r  t h e  c u r re n t  fi n a n c ia l y e a r.

2 .  C R I T I C A L  A C C O U N T I N G  J U D G E M E N T S , E S T I M A T E S   
A N D  A S S U M P T I O N S

T h e  p re p a r a t io n  o f t h e  fi n a n c ia l s t a t e m e n t s  re q u ire s  m a n a g e m e n t  t o  m a k e  ju d g e m e n t s , e s t im a t e s  a n d  a s s u m p t io n s  
t h a t  a ff e c t  t h e  re p o r t e d  a m o u n t s  in  t h e  fi n a n c ia l s t a t e m e n t s . M a n a g e m e n t  c o n t in u a lly  e v a lu a t e s  it s  ju d g e m e n t s  a n d  
e s t im a t e s  in  re la t io n  t o  a s s e t s , lia b ilit ie s , c o n t in g e n t  lia b ilit ie s , re v e n u e , a n d  e x p e n s e s . M a n a g e m e n t  b a s e s  it s  ju d g e m e n t s , 
e s t im a t e s  a n d  a s s u m p t io n s  o n  h is t o r ic a l e x p e r ie n c e  a n d  o n  o t h e r  v a r io u s  fa c t o r s , in c lu d in g  e x p e c t a t io n s  o f fu t u re  e v e n t s , 
m a n a g e m e n t  b e lie v e s  t o  b e  re a s o n a b le  u n d e r  t h e  c irc u m s t a n c e s . T h e  re s u lt in g  a c c o u n t in g  ju d g e m e n t s  a n d  e s t im a t e s  w ill 
s e ld o m  e q u a l t h e  re la t e d  a c t u a l re s u lt s . T h e  e s t im a t e , ju d g e m e n t s  a n d  a s s u m p t io n s  t h a t  h a v e  a  s ig n ifi c a n t  r is k  o f c a u s in g  a  
m a t e r ia l a d ju s t m e n t  t o  t h e  c a r r y in g  a m o u n t s  o f a s s e t s  a n d  lia b ilit ie s  (re fe r  t o  t h e  re s p e c t iv e  N o t e s ) w it h in  t h e  n e x t  fi n a n c ia l 
y e a r  a re  d is c u s s e d  b e lo w .

M A G N IS  E N E R G Y  T E C H N O L O G IE S   - A N N U A L  R E P O R T  2 0 2 0  

4 7

N o t e s  t o  t h e  F in a n c ia l S t a t e m e n t s

C o r o n a v ir u s  (C O V ID -1 9 ) p a n d e m ic  

J u d g e m e n t  h a s  b e e n  e x e rc is e d  in  c o n s id e r in g  t h e  im p a c t s  t h a t  t h e  C o ro n a v ir u s  (C O V ID -1 9 ) p a n d e m ic  h a s  h a d , o r  m a y  
h a v e , o n  t h e  c o n s o lid a t e d  e n t it y  b a s e d  o n  k n o w n  in fo r m a t io n . T h is  c o n s id e r a t io n  e x t e n d s  t o  t h e  n a t u re  o f t h e  p ro d u c t s  
a n d  s e r v ic e s  o ff e re d , c u s t o m e r s , s u p p ly  c h a in , s t a ffi n g  a n d  g e o g r a p h ic  re g io n s  in  w h ic h  t h e  c o n s o lid a t e d  e n t it y  o p e r a t e s . 
O t h e r  t h a n  a s  a d d re s s e d  in  s p e c ifi c  N o t e s , t h e re  d o e s  n o t  c u r re n t ly  a p p e a r  t o  b e  e it h e r  a n y  s ig n ifi c a n t  im p a c t  u p o n  
t h e  fi n a n c ia l s t a t e m e n t s  o r  a n y  s ig n ifi c a n t  u n c e r t a in t ie s  w it h  re s p e c t  t o  e v e n t s  o r  c o n d it io n s  w h ic h  m a y  im p a c t  t h e  
c o n s o lid a t e d  e n t it y  u n fa v o u r a b ly  a s  a t  t h e   re p o r t in g  d a t e  o r  s u b s e q u e n t ly  a s  a  re s u lt  o f t h e  C o ro n a v ir u s  (C O V ID -1 9 ) 
p a n d e m ic . 

S h a r e -b a s e d  p a y m e n t  t r a n s a c t io n s

T h e  G ro u p  m e a s u re s  t h e  c o s t  o f e q u it y -s e t t le d  t r a n s a c t io n s  w it h  e m p lo y e e s  a n d  d ire c t o r s  b y  re fe re n c e  t o  t h e  fa ir  v a lu e  o f 
t h e  e q u it y  in s t r u m e n t s  a t  t h e  d a t e  a t  w h ic h  t h e y  a re  g r a n t e d . T h e  fa ir  v a lu e  o f s h a re  o p t io n s  is  d e t e r m in e d  b y  a n  e x t e r n a l 
v a lu e r  u s in g  a  b in o m ia l o p t io n  p r ic in g  m o d e l t h a t  u s e s  t h e  a s s u m p t io n s  d e t a ile d  in  N o t e  2 8 (g ).

I n d ir e c t  t a x  r e c e iv a b le s  a n d  lia b ilit ie s

T h e  G ro u p  is  s u b je c t  t o  in d ire c t  t a x e s  in  A u s t r a lia  a n d  t h e  ju r is d ic t io n  w h e re  it  h a s  fo re ig n  o p e r a t io n s . S ig n ifi c a n t  
ju d g e m e n t  is  re q u ire d  in  d e t e r m in in g  t h e  a m o u n t s  re c o rd e d  a s  re c e iv a b le s  fo r  re c o v e r y  o f s u c h  t a x e s  a n d  p a y a b le s  fo r  
p a y m e n t  o f s u c h  t a x e s . T h e  G ro u p  is  s u b je c t  t o  a n  a u d it  b y  a  t a x  a u t h o r it y  in  a  ju r is d ic t io n  in  w h ic h  it  o p e r a t e s . T h e  t a x  
a u t h o r it y  is  d is p u t in g  t h e  q u a n t u m  o f g o o d s  a n d  s e r v ic e s  t a x  re c e iv a b le  a n d  w it h h o ld in g  t a x e s  p a y a b le . D is c u s s io n s  w it h  
t h e  re le v a n t  t a x  a u t h o r it y  a re  o n g o in g . T h e  G ro u p  re c o g n is e s  lia b ilit ie s  fo r  a n t ic ip a t e d  t a x  a u d it  is s u e s  b a s e d  o n  e s t im a t e s  
o f w h e t h e r  a d d it io n a l t a x e s  w ill b e  d u e . T h e  G ro u p  h a s  a d e q u a t e ly  re c o rd e d  re c e iv a b le s  a n d  p a y a b le s  fo r  t h e  a m o u n t s  
it  b e lie v e s  w ill u lt im a t e ly  b e  p a y a b le . W h e re  t h e  fi n a l o u t c o m e  o f a n y  m a t t e r s  is  d iff e re n t  fro m  a m o u n t s  re c o rd e d , s u c h  
d iff e re n c e s  w ill im p a c t  t h e  in d ire c t  t a x  re c e iv a b le s  o r  p ro v is io n  in  t h e  p e r io d  in  w h ic h  s u c h  d e t e r m in a t io n  is  m a d e .

F a ir  v a lu e  e s t im a t e s  o f  fi n a n c ia l in s t r u m e n t s

T h e  G ro u p  is  re q u ire d  t o  c la s s ify  a ll a s s e t s  a n d  lia b ilit ie s , m e a s u re d  a t  fa ir  v a lu e , u s in g  a  t h re e  le v e l h ie r a rc h y , b a s e d  o n  t h e  
lo w e s t  le v e l o f in p u t  t h a t  is  s ig n ifi c a n t  t o  t h e  e n t ire  fa ir  v a lu e  m e a s u re m e n t , b e in g : L e v e l 1 : Q u o t e d  p r ic e s  (u n a d ju s t e d ) in  
a c t iv e  m a r k e t s  fo r  id e n t ic a l a s s e t s  o r  lia b ilit ie s  t h a t  t h e  e n t it y  c a n  a c c e s s  a t  t h e  m e a s u re m e n t  d a t e ; L e v e l 2 : In p u t s  o t h e r  
t h a n  q u o t e d  p r ic e s  in c lu d e d  w it h in  L e v e l 1  t h a t  a re  o b s e r v a b le  fo r  t h e  a s s e t  o r  lia b ilit y , e it h e r  d ire c t ly  o r  in d ire c t ly ; a n d  
L e v e l 3 : U n o b s e r v a b le  in p u t s  fo r  t h e  a s s e t  o r  lia b ilit y . C o n s id e r a b le  ju d g e m e n t  is  re q u ire d  t o  d e t e r m in e  w h a t  is  s ig n ifi c a n t  
t o  fa ir  v a lu e  a n d  t h e re fo re  w h ic h  c a t e g o r y  t h e  a s s e t  o r  lia b ilit y  is  p la c e d  in  c a n  b e  s u b je c t iv e

T h e  fa ir  v a lu e  o f a s s e t s  a n d  lia b ilit ie s  c la s s ifi e d  a s  le v e l 3  is  d e t e r m in e d  b y  t h e  u s e  o f v a lu a t io n  m o d e ls . T h e s e  in c lu d e  
d is c o u n t e d  c a s h  fl o w  a n a ly s is  o r  t h e  u s e  o f o b s e r v a b le  in p u t s  t h a t  re q u ire  s ig n ifi c a n t  a d ju s t m e n t s  b a s e d  o n  u n o b s e r v a b le  
in p u t s .

3 . S E G M E N T  I N F O R M A T I O N

a ) Id e n t ifi c a t io n  o f  r e p o r t a b le  s e g m e n t s

T h e  G ro u p  h a s  id e n t ifi e d  it s  o p e r a t in g  s e g m e n t s  b a s e d  o n  t h e  in t e r n a l re p o r t s  t h a t  a re  re v ie w e d  a n d  u s e d  b y  t h e  e x e c u t iv e  
m a n a g e m e n t  t e a m  (c h ie f o p e r a t in g  d e c is io n  m a k e r ) in  a s s e s s in g  p e r fo r m a n c e  a n d  in  d e t e r m in in g  t h e  a llo c a t io n  o f 
re s o u rc e s .

D u r in g  t h e  fi n a n c ia l y e a r, t h e  G ro u p  c o n t in u e d  it s  p a r t ic ip a t io n  in  g lo b a l c o n s o r t iu m , in c lu d in g  o w n e r s h ip , t o  o p e r a t e  
lit h iu m -io n  b a t t e r y  g ig a fa c t o r ie s  in  A u s t r a lia  a n d  t h e  U S A . A s  a  m e m b e r  o f t h e s e  c o n s o r t iu m s , M a g n is ’ ro le  w ill b e  t o  
p ro v id e  a n o d e  m a t e r ia ls  a n d  a s s o c ia t e d  t e c h n o lo g ie s  t o  a s s is t  in  t h e  p ro d u c t io n  p ro c e s s .

T h is  a c t iv it y  is  s u p p le m e n t e d  b y  t h e  in v o lv e m e n t  in  t h e  d e v e lo p m e n t  a n d  u lt im a t e  m in in g  o f n a t u r a l fl a k e  g r a p h it e  fo r  u s e  
in  v a r io u s  in d u s t r ie s , in c lu d in g  in  p a r t ic u la r  b a t t e r ie s  fo r  s t o r in g  e le c t r ic a l e n e rg y .

4 8  

A N N U A L  R E P O R T  2 0 2 0  - M A G N IS  E N E R G Y  T E C H N O L O G IE S

D u e  t o  t h e  in fa n c y  o f it s  in t e re s t s  in  t h e  lit h iu m -io n  b a t t e r y  s e c t o r, t h e  G ro u p  h a s  d e t e r m in e d  it s  re p o r t a b le  s e g m e n t s  fo r  
t h e  fi n a n c ia l y e a r  e n d e d  3 0  J u n e  2 0 2 0  a s  fo llo w s :

> 

L it h iu m -io n  B a t t e r y  in v e s t m e n t s

>  G r a p h it e  e x p lo r a t io n  a n d  d e v e lo p m e n t

b ) Id e n t ifi c a t io n  o f  r e p o r t a b le  s e g m e n t s

2 0 2 0  
S e g m e n t  fi n a n c i a l  
i n f o r m a t i o n

L i t h i u m -i o n  B a t t e r y  
I n v e s t m e n t  
U S A  
$

L i t h i u m -i o n  B a t t e r y  
I n v e s t m e n t   
A u s t r a l i a   
$

G r a p h i t e  E x p l o r a t i o n  
&  D e v e l o p m e n t  
T a n z a n i a   
$

C o n s o l i d a t e d
$

S e g m e n t  re v e n u e

S e g m e n t  lo s s  b e fo re  t a x

S e g m e n t  c u r re n t  a s s e t s

S e g m e n t  n o n -c u r re n t  a s s e t s

S e g m e n t  lia b ilit ie s

A c c o u n t in g  p o lic ie s  

1 4 9 ,4 6 8

-

1 9 1 ,2 1 7

7 ,4 9 5 ,5 6 1

-

1 8 ,2 5 2

 -

1 3 1 ,4 7 3

 -

 -

6 8 4 ,1 6 0

(7 ,3 7 8 ,6 0 1 )

1 ,2 0 5 ,0 0 9

1 8 ,0 4 1 ,2 3 6

(2 ,4 4 0 ,8 7 1 )

8 5 1 ,8 8 0

(7 ,3 7 8 ,6 0 1 )

1 ,5 2 7 ,6 9 9

2 5 ,6 8 7 ,7 9 7

(2 ,4 4 0 ,8 7 1 )

T h e  G ro u p  a p p lie s  A A S B  8  O p e r a t in g  S e g m e n t s  a n d  d e t e r m in e s  it s  o p e r a t in g  s e g m e n t s  t o  b e  b a s e d  o n  it s  g e o g r a p h ic a l 
lo c a t io n  a n d  a ls o  b y  o p e r a t io n a l t y p e . L it h iu m -Io n  B a t t e r y  In v e s t m e n t  re fe r s  t o  t h e  G ro u p s  o w n e r s h ip  in  p la n n e d  
g ig a fa c t o r ie s  v ia  t h e  G lo b a l C o n s o r t iu m  Im p e r iu m 3  P t y  L t d . G r a p h it e  e x p lo r a t io n  a n d  d e v e lo p m e n t  c u r re n t ly  re fe r s  t o  t h e  
p re -d e v e lo p m e n t  o p e r a t io n  o f t h e  N a c h u  G r a p h it e  P ro je c t  in  T a n z a n ia . T h e  fi n a n c ia l p e r fo r m a n c e  o f t h e s e  s e g m e n t s  a re  
re p o r t e d  t o  t h e  B o a rd  o n  a  m o n t h ly  b a s is . T h e  a c c o u n t in g  s t a n d a rd s  a d o p t e d  in  p re p a r in g  in t e r n a l re p o r t s  t o  t h e  B o a rd  a re  
c o n s is t e n t  w it h  t h o s e  a d o p t e d  in  p re p a r in g  t h is  a n n u a l re p o r t . O p e r a t in g  s e g m e n t s  a re  s u b je c t  t o  r is k s  a n d  re t u r n s  t h a t  a re  
d iff e re n t  t o  t h o s e  o f s e g m e n t s  o p e r a t in g  in  o t h e r  e c o n o m ic  e n v iro n m e n t s .

I n t e r -s e g m e n t  t r a n s a c t io n s

To  a v o id  a s y m m e t r ic a l a llo c a t io n  w it h in  s e g m e n t s  w h ic h  m a n a g e m e n t  b e lie v e  w o u ld  b e  in c o n s is t e n t  p o lic y  is  t h a t  if it e m s  
o f re v e n u e  a n d  e x p e n s e  a re  n o t  a llo c a t e d  t o  o p e r a t in g  s e g m e n t s  t h e n  a n y  a s s o c ia t e d  a s s e t s  a n d  lia b ilit ie s  a re  a ls o  n o t  
a llo c a t e d  t o  s e g m e n t s .

S e g m e n t  a s s e t s  a n d  lia b ilit ie s

S e g m e n t  a s s e t s  in c lu d e  a ll a s s e t s  u s e d  b y  a  s e g m e n t  a n d  c o n s is t  p r im a r ily  o f c a s h  a n d  c a s h  e q u iv a le n t s . D e v e lo p m e n t  
a s s e t s , p la n t  a n d  e q u ip m e n t  a n d  t r a d e  a n d  o t h e r  re c e iv a b le s . W h ile  m o s t  o f t h e s e  a s s e t s  c a n  b e  d ire c t ly  a t t r ib u t a b le  t o  
in d iv id u a l s e g m e n t s , t h e  c a r r y in g  a m o u n t s  o f c e r t a in  a s s e t s  u s e d  jo in t ly  b y  s e g m e n t s  a re  n o t  a llo c a t e d . S e g m e n t  lia b ilit ie s  
c o n s is t  p r im a r ily  o f t r a d e  a n d  o t h e r  c re d it o r s  a n d  e m p lo y e e  b e n e fi t s . S e g m e n t  a s s e t s  a n d  lia b ilit ie s  d o  n o t  in c lu d e  d e fe r re d  
in c o m e  t a x e s .

4 .  D I V I D E N D S  P A I D  O R  P R O V I D E D  F O R  O N  O R D I N A R Y  S H A R E S

N o  d iv id e n d s  w e re  p a id  o r  d e c la re d  s in c e  t h e  s t a r t  o f t h e  fi n a n c ia l y e a r. N o  re c o m m e n d a t io n  fo r  p a y m e n t  o f d iv id e n d s  h a s  
b e e n  m a d e .

M A G N IS  E N E R G Y  T E C H N O L O G IE S   - A N N U A L  R E P O R T  2 0 2 0  

4 9

 
N o t e s  t o  t h e  F in a n c ia l S t a t e m e n t s

5 . I N C O M E  T A X

C u r r e n t  i n c o m e  t a x  

C u rre n t in c o m e  ta x  c re d it/(e x p e n s e ) 

Ta x  lo s s e s  n o t re c o g n is e d  a s  n o t p ro b a b le  

(U n d e r)/o v e r p ro v is io n  in  p rio r y e a r 

D e f e r r e d  i n c o m e  t a x  

C o n s o l i d a t e d

2 0 2 0   
$

2 0 1 9  
$

2 ,2 3 4 ,2 2 0  

1 ,5 1 0 ,5 6 7

(1 ,7 4 7 ,0 7 8 ) 

(1 ,4 5 5 ,3 3 1 )

4 8 7 ,1 4 2  

5 5 ,2 3 6

R e la tin g  to  o rig in a tio n  a n d  re v e rs a l o f te m p o ra r y  d iff e re n c e s  

(4 8 7 ,1 4 2 ) 

(5 5 ,2 3 6 )

Ta x  lo s s e s  b ro u g h t to  a c c o u n t to  o ff s e t n e t d e fe rre d  ta x  lia b ility  

In c o m e  ta x  c re d it/(e x p e n s e ) re p o r te d  in  th e  S ta te m e n t o f C o m p re h e n s iv e  In c o m e  

a ) S t a t e m e n t  o f  C h a n g e s  i n  E q u i t y  

D e f e r r e d  i n c o m e  t a x  r e l a t e d  t o  i t e m s  c h a r g e d  o r  c r e d i t e d  d i r e c t l y  t o  e q u i t y  

S h a re  is s u e  c o s ts  

D e fe rre d  ta x  o ff s e t 

In c o m e  ta x  b e n e fi t re p o r te d  in  E q u ity  

b ) T a x  R e c o n c i l i a t i o n  

- 

- 

- 

-

-

-

5 0 ,3 1 8  

1 0 2 ,7 0 8

(5 0 ,3 1 8 ) 

(1 0 2 ,7 0 8 )

- 

-

A  r e c o n c i l i a t i o n  b e t w e e n  t a x  e x p e n s e  a n d  t h e  p r o d u c t  o f  a c c o u n t i n g  p r o fi t  b e f o r e  i n c o m e  t a x  m u l t i p l i e d  b y  t h e  G r o u p ’s   

a p p l i c a b l e  i n c o m e  t a x  r a t e  i s  a s  f o l l o w s :

A c c o u n tin g  (lo s s ) b e fo re  ta x   

(7 ,3 7 8 ,6 0 1 ) 

(5 ,5 4 9 ,5 5 3 )

A t th e  G ro u p ’s  s ta tu to r y  3 0 % ta x  ra te  (2 0 1 9 : 3 0 %) 

2 ,2 1 3 ,5 8 0  

1 ,6 6 4 ,8 6 6

S h a re  b a s e d  p a y m e n t e x p e n s e  

M o v e m e n t in  te m p o ra r y  d iff e re n c e s  

S h a re  o f n e t P &L  o f a s s o c ia te  a c c o u n te d  fo r u s in g  e q u ity  m e th o d  

(1 2 0 ,2 4 0 ) 

(3 8 0 ,5 6 5 ) 

- 

(3 ,1 5 0 )

(5 9 ,5 4 7 )

(9 0 ,3 4 3 )

E x p lo ra tio n  a n d  e v a lu a tio n  e x p e n s e  w rite  o ff  

(1 1 8 ,3 7 6 ) 

(2 2 9 ,1 1 3 )

N o n -a s s e s s a b le  R &D  o ff s e t in c o m e   

D e d u c tib le  o p tio n  is s u e  c o s ts   

O th e r a d ju s tm e n ts   

Ta x  lo s s e s  n o t b ro u g h t to  a c c o u n t 

L o s s  re c o u p m e n t   

In c o m e  ta x  (e x p e n s e ) re p o r te d  in  th e  S ta te m e n t o f C o m p re h e n s iv e  In c o m e  

3 4 ,9 1 5  

1 1 5 ,1 3 6  

2 ,6 2 7  

6 3 ,2 0 5

1 1 3 ,7 3 4

(4 ,3 2 1 )

(1 ,7 4 7 ,0 7 7 ) 

(1 ,4 5 5 ,3 3 1 )

- 

- 

-

-

5 0  

A N N U A L  R E P O R T  2 0 2 0  - M A G N IS  E N E R G Y  T E C H N O L O G IE S

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
A t  t h e  re p o r t in g  d a t e , t h e  G ro u p  h a s  e s t im a t e d  t a x  lo s s e s  o f $ 1 0 2 ,3 5 8 ,3 1 9  [2 0 1 9 : $ 9 5 ,7 0 9 ,9 6 5 ] a v a ila b le  t o  o ff s e t  a g a in s t  
fu t u re  t a x a b le  in c o m e  s u b je c t  t o  c o n t in u in g  t o  m e e t  re le v a n t  s t a t u t o r y  t e s t s . To  t h e  e x t e n t  t h a t  is  d o e s  n o t  o ff s e t  a  d e fe r re d  
t a x  lia b ilit y , a  d e fe r re d  t a x  a s s e t  h a s  n o t  b e e n  re c o g n is e d  fo r  t h e s e  lo s s e s  b e c a u s e  it  is  n o t  p ro b a b le  t h a t  fu t u re  t a x a b le  
in c o m e  w ill b e  a v a ila b le  t o  u s e  a g a in s t  s u c h  lo s s e s .”

A C C O U N T I N G  P O L I C I E S  

T h e  in c o m e  t a x  e x p e n s e  o r  re v e n u e  fo r  t h e  p e r io d  is  t h e  t a x  p a y a b le  o n  t h e  c u r re n t  p e r io d ’s  t a x a b le  in c o m e  b a s e d  o n  t h e  
n a t io n a l in c o m e  t a x  r a t e  fo r  e a c h  ju r is d ic t io n  a d ju s t e d  b y  t h e  c h a n g e s  in  d e fe r re d  t a x  a s s e t s  a n d  lia b ilit ie s  a t t r ib u t a b le  
t o  t e m p o r a r y  d iff e re n c e s  b e t w e e n  t h e  t a x  b a s e s  o f a s s e t s  a n d  lia b ilit ie s  a n d  t h e ir  c a r r y in g  a m o u n t s  in  t h e  fi n a n c ia l 
s t a t e m e n t s , a n d  t o  u n u s e d  t a x  lo s s e s .

D e fe r re d  in c o m e  t a x  is  p ro v id e d  o n  a ll t e m p o r a r y  d iff e re n c e s  a t  t h e  re p o r t in g  d a t e  b e t w e e n  t h e  t a x  b a s e s  o f a s s e t s  a n d  
lia b ilit ie s  a n d  t h e ir  c a r r y in g  a m o u n t s  fo r  fi n a n c ia l re p o r t in g  p u r p o s e s .

D e fe r re d  in c o m e  t a x  lia b ilit ie s  a re  re c o g n is e d  fo r  a ll t e m p o r a r y  d iff e re n c e s , e x c e p t :

> 

> 

 w h e re  t h e  d e fe r re d  in c o m e  t a x  lia b ilit y  a r is e s  fro m  t h e  in it ia l re c o g n it io n  o f a n  a s s e t  o r  lia b ilit y  in  a  t r a n s a c t io n  t h a t  is  
n o t  a  b u s in e s s  c o m b in a t io n  a n d , a t  t h e  t im e  o f t h e  t r a n s a c t io n , a ff e c t s  n e it h e r  t h e  a c c o u n t in g  p ro fi t  n o r  t a x a b le  p ro fi t  
o r  lo s s ; o r

 w h e n  t h e  t a x a b le  t e m p o r a r y  d iff e re n c e  is  a s s o c ia t e d  w it h  in v e s t m e n t s  in  s u b s id ia r ie s , a s s o c ia t e s  o r  in t e re s t s  in  jo in t  
v e n t u re s , a n d  t h e  t im in g  o f t h e  re v e r s a l o f t h e  t e m p o r a r y  d iff e re n c e  c a n  b e  c o n t ro lle d  a n d  it  is  p ro b a b le  t h a t  t h e  
t e m p o r a r y  d iff e re n c e s  w ill n o t  re v e r s e  in  t h e  fo re s e e a b le  fu t u re .

D e fe r re d  in c o m e  t a x  a s s e t s  a re  re c o g n is e d  fo r  a ll d e d u c t ib le  t e m p o r a r y  d iff e re n c e s , c a r r y -fo r w a rd  o f u n u s e d  t a x  a s s e t s  
a n d  u n u s e d  t a x  lo s s e s , t o  t h e  e x t e n t  t h a t  it  is  p ro b a b le  t h a t  t a x a b le  p ro fi t  w ill b e  a v a ila b le  a g a in s t  w h ic h  t h e  d e d u c t ib le  
t e m p o r a r y  d iff e re n c e , a n d  t h e  c a r r y -fo r w a rd  o f u n u s e d  t a x  a s s e t s  a n d  u n u s e d  t a x  lo s s e s  c a n  b e  u s e d , e x c e p t :

> 

> 

 w h e re  t h e  d e fe r re d  in c o m e  t a x  a s s e t  re la t in g  t o  t h e  d e d u c t ib le  t e m p o r a r y  d iff e re n c e  a r is e s  fro m  t h e  in it ia l re c o g n it io n  
o f a n  a s s e t  o r  lia b ilit y  in  a  t r a n s a c t io n  t h a t  is  n o t  a  b u s in e s s  c o m b in a t io n  a n d , a t  t h e  t im e  o f t h e  t r a n s a c t io n , a ff e c t s  
n e it h e r  t h e  a c c o u n t in g  p ro fi t  n o r  t a x a b le  p ro fi t  o r  lo s s ; a n d

 w h e n  t h e  d e d u c t ib le  t e m p o r a r y  d iff e re n c e s  is  a s s o c ia t e d  w it h  in v e s t m e n t s  in  s u b s id ia r ie s , a s s o c ia t e s  o r  in t e re s t s  in  
jo in t  v e n t u re s , in  w h ic h  c a s e  a  d e fe r re d  t a x  a s s e t  is  o n ly  re c o g n is e d  t o  t h e  e x t e n t  t h a t  it  is  p ro b a b le  t h a t  t h e  t e m p o r a r y  
d iff e re n c e  w ill re v e r s e  in  t h e  fo re s e e a b le  fu t u re  a n d  t a x a b le  p ro fi t  w ill b e  a v a ila b le  a g a in s t  w h ic h  t h e  t e m p o r a r y  
d iff e re n c e s  c a n  b e  a p p lie d .

T h e  c a r r y in g  a m o u n t  o f d e fe r re d  in c o m e  t a x  a s s e t s  is  re v ie w e d  a t  e a c h  re p o r t in g  d a t e  a n d  re d u c e d  t o  t h e  e x t e n t  t h a t  it  is  
n o  lo n g e r  p ro b a b le  t h a t  s u ffi c ie n t  t a x a b le  p ro fi t  w ill b e  a v a ila b le  t o  a llo w  a ll o r  p a r t  o f t h e  d e fe r re d  in c o m e  t a x  a s s e t  t o  b e  
u t ilis e d .

D e fe r re d  in c o m e  t a x  a s s e t s  a n d  lia b ilit ie s  a re  m e a s u re d  a t  t h e  t a x  r a t e s  t h a t  a re  e x p e c t e d  t o  a p p ly  t o  t h e  y e a r  w h e n  t h e  
a s s e t  is  re a lis e d  o r  t h e  lia b ilit y  is  s e t t le d , b a s e d  o n  t a x  r a t e s  [a n d  t a x  la w s ] t h a t  h a v e  b e e n  e n a c t e d  o r  s u b s t a n t iv e ly  e n a c t e d  
a t  t h e  re p o r t in g  d a t e .

In c o m e  t a x e s  re la t in g  t o  it e m s  re c o g n is e d  d ire c t ly  in  e q u it y  a re  re c o g n is e d  in  e q u it y  a n d  n o t  in  t h e  s t a t e m e n t  o f fi n a n c ia l 
p o s it io n .

T a x  c o n s o lid a t e d  g r o u p

T h e  C o m p a n y  a n d  it s  w h o lly  o w n e d  A u s t r a lia n  s u b s id ia r ie s  h a v e  e le c t e d  t o  fo r m  a  t a x  c o n s o lid a t e d  g ro u p  fro m  1  J u ly  2 0 1 5 , 
w it h  M a g n is  R e s o u rc e s  L im it e d  b e in g  t h e  h e a d  e n t it y  w it h in  t h a t  g ro u p . T h e s e  e n t it ie s  a re  t a x e d  a s  a  s in g le  e n t it y .

M A G N IS  E N E R G Y  T E C H N O L O G IE S   - A N N U A L  R E P O R T  2 0 2 0  

5 1

N o t e s  t o  t h e  F in a n c ia l S t a t e m e n t s

6 .  C U R R E N T  A S S E T S  - C A S H  A N D  C A S H  E Q U I V A L E N T S

C a s h  o n  h a n d  

C a s h  a t  b a n k  

A C C O U N T I N G  P O L I C I E S  

C o n s o l i d a t e d

2 0 2 0   
 $

5 ,0 9 4  

7 1 4 ,5 2 1  

7 1 9 ,6 1 5  

2 0 1 9   
$

6 ,4 4 8

1 ,8 2 3 ,3 6 9

1 ,8 2 9 ,8 1 7

F o r  s t a t e m e n t  o f c a s h  fl o w s  p re s e n t a t io n  p u r p o s e s , c a s h  a n d  c a s h  e q u iv a le n t s  in c lu d e s  c a s h  o n  h a n d , d e p o s it s  h e ld  a t  c a ll 
w it h  fi n a n c ia l in s t it u t io n s , o t h e r  s h o r t -t e r m  h ig h ly  liq u id  in v e s t m e n t s  t h a t  a re  re a d ily  c o n v e r t ib le  t o  k n o w n  a m o u n t s  o f 
c a s h  a n d  w h ic h  a re  s u b je c t  t o  in s ig n ifi c a n t  r is k  o f c h a n g e  in  v a lu e , a n d  b a n k  o v e rd r a f t s . 

7 . T R A D E  A N D  O T H E R  R E C E I V A B L E S

A c c r u e d  in t e re s t  

G o o d s  a n d  s e r v ic e s  t a x  re c o v e r a b le  

P re p a y m e n t s  a n d  o t h e r  re c e iv a b le s  

L e s s : a llo w a n c e  fo r  e x p e c t e d  c re d it  lo s s  

S e c u r it y  d e p o s it  

A C C O U N T I N G  P O L I C I E S  

C o n s o l i d a t e d

2 0 2 0   
$

9 1 0  

2 6 ,1 5 8  

3 9 9 ,0 6 1  

(4 9 ,9 6 3 ) 

1 5 0 ,9 7 7  

5 2 7 ,1 4 3  

2 0 1 9  
$

1 ,5 6 2

3 0 ,6 6 1

2 3 1 ,6 3 7

(1 0 7 ,2 1 4 )

1 5 0 ,9 7 7

3 0 7 ,6 2 3

O t h e r  re c e iv a b le s  a re  re c o g n is e d  a n d  m e a s u re d  a t  a m o r t is e d  c o s t , le s s  a n y  a llo w a n c e  fo r  e x p e c t e d  c re d it  lo s s e s .

A llo w a n c e  f o r  e x p e c t e d  c r e d it  lo s s e s

T h e  c o n s o lid a t e d  e n t it y  h a s  re c o g n is e d  a  lo s s  o f $ 4 9 ,9 6 3  (2 0 1 9 : 1 0 7 ,2 1 4 ) in  t h e  p ro fi t  o r  lo s s , in  re s p e c t  o f t h e  e x p e c t e d  
c re d it  lo s s e s  re la t e d  t o  t r a d e  a n d  o t h e r  re c e iv a b le s  fo r  t h e  y e a r  e n d e d  3 0  J u n e  2 0 2 0 .

M o v e m e n t s  in  t h e  a llo w a n c e  fo r  e x p e c t e d  c re d it  lo s s e s  a re  a s  fo llo w s :

O p e n in g  b a la n c e  

A d d it io n a l p ro v is io n s  re c o g n is e d  

R e c e iv a b le s  w r it t e n  o ff  d u r in g  t h e  y e a r  a s  u n c o lle c t a b le  

U n u s e d  a m o u n t s  re v e r s e d  

C lo s in g  b a la n c e  

C o n s o l i d a t e d

2 0 2 0   
$

1 0 7 ,2 1 4  

4 9 ,9 6 3  

(1 0 7 ,2 1 4 ) 

- 

4 9 ,9 6 3  

2 0 1 9   
$

-

1 0 7 ,2 1 4

-

-

1 0 7 ,2 1 4

5 2  

A N N U A L  R E P O R T  2 0 2 0  - M A G N IS  E N E R G Y  T E C H N O L O G IE S

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
8 . L O A N  R E C E I V A B L E S

A c c r u e d  in t e re s t  

S h o r t -t e r m  lo a n - C h a rg e  C C C V  L L C  

L e s s : a llo w a n c e  fo r  e x p e c t e d  c re d it  lo s s  

S h o r t -t e r m  lo a n - Im p e r iu m 3  To w n s v ille  

A C C O U N T I N G  P O L I C I E S  

C o n s o l i d a t e d

2 0 2 0   
 $

2 0 1 9   
$

1 6 7 ,7 2 0  

4 3 ,4 0 4

1 ,5 1 7 ,7 5 4  

1 ,3 5 4 ,0 7 3

(1 ,5 1 7 ,7 5 4 ) 

1 1 3 ,2 2 1  

2 8 0 ,9 4 1  

(4 9 ,8 3 0 )

4 7 5 ,0 0 0

1 ,8 2 2 ,6 4 7

L o a n  re c e iv a b le s  a re  re c o g n is e d  a n d  m e a s u re d  a t  a m o r t is e d  c o s t , le s s  a n y  a llo w a n c e  fo r  e x p e c t e d  c re d it  lo s s e s .

A llo w a n c e  f o r  e x p e c t e d  c r e d it  lo s s e s

T h e  c o n s o lid a t e d  e n t it y  h a s  re c o g n is e d  a  lo s s  o f $ 1 ,5 1 7 ,7 5 4  (2 0 1 9 : $ 1 4 9 ,8 3 0  ) in  p ro fi t  o r  lo s s  in  re s p e c t  o f t h e  e x p e c t e d  
c re d it  lo s s e s  re la t e d  t o  t r a d e  a n d  o t h e r  re c e iv a b le s  fo r  t h e  y e a r  e n d e d  3 0  J u n e  2 0 2 0 .

M o v e m e n t s  in  t h e  a llo w a n c e  fo r  e x p e c t e d  c re d it  lo s s e s  a re  a s  fo llo w s : 

O p e n in g  b a la n c e  

A d d it io n a l p ro v is io n s  re c o g n is e d  

R e c e iv a b le s  w r it t e n  o ff  d u r in g  t h e  y e a r  a s  u n c o lle c t a b le  

U n u s e d  a m o u n t s  re v e r s e d  

C lo s in g  b a la n c e  

C o n s o l i d a t e d

2 0 2 0   
 $

4 9 ,8 3 0  

1 ,5 1 7 ,7 5 4  

(4 9 ,8 3 0 ) 

- 

2 0 1 9   
$

- 

4 9 ,8 3 0  

-

-

1 ,5 1 7 ,7 5 4  

4 9 ,8 3 0  

O n  6  A u g u s t  2 0 2 0 , t h e  C o m p a n y  e n t e re d  in t o  a n  A m e n d m e n t  A g re e m e n t  w it h  C h a r g e  C C C V , L L C  (C 4 V ) (A g re e m e n t ).

In  s u m m a r y , t h e  A g re e m e n t  a m e n d e d  t h e  S e r v ic e  S u p p ly  A g re e m e n t  d a t e d  1  M a rc h  2 0 1 7  b e t w e e n  t h e  C o m p a n y  a s  
P r in c ip a l a n d  C 4 V  a s  A g e n t  t o  p ro v id e  v a r io u s  s e r v ic e s  t o  t h e  P r in c ip a l (S e r v ic e s  A g re e m e n t ), s u c h  t h a t  g o in g  fo r w a rd , 
t h e  C o m p a n y  w a s  re q u ire d  t o  p a y , w it h  e ff e c t   fro m  1  J u ly  2 0 2 0  C 4 V , a  s e r v ic e  fe e  o f U S $ 5 0 ,0 0 0  m o n t h ly  in  lie u  o f t h e  
U S $ 3 7 5 ,0 0 0  s e r v ic e  fe e  p re v io u s ly  p a y a b le  o n  a  q u a r t e r ly  b a s is , w it h  n o  c h a n g e  t o  t h e  n e w  t e r m s  p e r m it t e d  fo r  t h re e  y e a r s .

T h e  A g re e m e n t  a ls o  a m e n d e d  t h e  L o a n  A g re e m e n t  d a t e d  2 1  D e c e m b e r  2 0 1 8  b e t w e e n  t h e  C o m p a n y  a s  L e n d e r  a n d  C 4 V  
a s  B o r ro w e r, s u c h  t h a t  g o in g  fo r w a rd , t h e  lo a n  b a la n c e  o f U S $ 1 ,1 8 0 ,0 0 0  o w in g  t o  t h e  C o m p a n y  a s  a t  3 0  J u n e  2 0 2 0  w a s  
a g re e d  t o  b e  re d u c e d  b y  t h e  a m o u n t  o f e x p e n s e s  in c u r re d  b y  C 4 V  in  p ro v id in g  s e r v ic e s  t o  t h e  C o m p a n y  u n d e r  t h e  S e r v ic e s  
A g re e m e n t  o f U S $ 5 8 2 ,8 6 6 , le a v in g  a  n e t  b a la n c e  o f U S $ 5 9 6 ,1 3 4  t o  b e c o m e  t h e  re v is e d  L o a n  A m o u n t  u n d e r  t h e  L o a n  
A g re e m e n t  w h ic h  L o a n  A m o u n t  w o u ld  a c c r u e  d a ily  in t e re s t  a t  t h e  r a t e  o f 7 .3 5 %  p a  fro m  1  J u ly  2 0 2 0 . T h e  t e r m  o f t h e  L o a n  
A g re e m e n t  w a s  e x t e n d e d  t o  e x p ire  o n  2 0  D e c e m b e r  2 0 2 0  (fro m  t h e  p re v io u s  e x p ir y  d a t e  o f 2 0  D e c e m b e r  2 0 1 9 ).

9 .  N O N  C U R R E N T  A S S E T S  - R E C E I V A B L E S

S e c u r it y  d e p o s it  

M A G N IS  E N E R G Y  T E C H N O L O G IE S   - A N N U A L  R E P O R T  2 0 2 0  

C o n s o l i d a t e d

2 0 2 0   
 $

2 0 1 9   
$

- 

- 

-

-

5 3

 
 
 
 
 
 
 
 
 
 
 
 
 
 
N o t e s  t o  t h e  F in a n c ia l S t a t e m e n t s

1 0 .  F I N A N C I A L  A S S E T  a t  F V O C I

E q u it y  in v e s t m e n t  in  C h a rg e  C C C V  L L C  

C o n s o l i d a t e d

2 0 2 0   
 $

7 ,4 9 5 ,5 6 2  

7 ,4 9 5 ,5 6 2  

2 0 1 9   
$

1 0 ,0 2 0 ,0 8 4

1 0 ,0 2 0 ,0 8 4

O n  2 9  M a rc h  2 0 1 8 , M a g n is  a n n o u n c e d  a  s t r a t e g ic  in v e s t m e n t  t o  a c q u ire  a  1 0 %  in t e re s t  in  le a d in g  U S  b a s e d , lit h iu m -io n  
b a t t e r y  t e c h n o lo g y  g ro u p , C h a rg e  C C C V  L L C  (‘C 4 V ’) a n d  s e c u re d  a n  e x c lu s iv e  a g re e m e n t  o v e r  s e le c t iv e  p a t e n t s , w h ic h  w ill 
a s s is t  in  d r iv in g  t h e  C o m p a n y ’s  g ro w t h  in  t h e  lit h iu m -io n  b a t t e r y  s e c t o r.

U n d e r  t h e  t e r m s  o f t h e  A g re e m e n t , M a g n is  a c q u ire d  a  1 0 %  s t a k e  in  C 4 V  fo r  t o t a l c o n s id e r a t io n  o f U S $ 7 .5  m illio n , 
c o m p r is in g  a n  u p fro n t  c a s h  p a y m e n t  o f U S $ 2 m  t o g e t h e r  w it h  t h e  is s u e  o f 6 ,9 4 0 ,5 4 4  o rd in a r y  s h a re s  in  M a g n is  
(re p re s e n t in g  U S $ 2 .5 m  in  v a lu e ). A  fu r t h e r  c a s h  p a y m e n t  o f U S $ 1  m illio n  w a s  m a d e  o n  1 2  S e p t e m b e r  2 0 1 8  t o g e t h e r  w it h  
t h e  is s u e  o f 7 ,5 0 7 ,5 0 8  o rd in a r y  s h a re s  in  M a g n is . A s  a t  3 0  J u n e  2 0 2 0 , M a g n is  h e ld  a  1 0 %  s t a k e  in  C 4 V  (2 0 1 9 : 1 0 % ).

M a g n is  h a s  a p p o in t e d  o n e  re p re s e n t a t iv e  t o  t h e  B o a rd  o f D ire c t o r s  o f C 4 V  a n d  h a s  a ls o  s e c u re d  a  fi r s t  r ig h t  o f re fu s a l fo r  
a n y  fu t u re  c a p it a l r a is in g  in it ia t iv e s  t h a t  C 4 V  u n d e r t a k e . F u r t h e r  t o  t h e  a g re e m e n t , M a g n is  a ls o  h a s  a n  e x c lu s iv e  a g re e m e n t  
fo r  5  y e a r s  o v e r  s e le c t e d  C 4 V  p a t e n t s , w h ic h  w ill e x p a n d  t h e  C o m p a n y ’s  m a t e r ia l t e c h n o lo g ie s  in  t h e  r a p id ly  g ro w in g  
lit h iu m -io n  B a t t e r y  s e c t o r.

A C C O U N T I N G  P O L I C I E S

(i) C la s s ifi c a t io n  o f fi n a n c ia l a s s e t s  a t  fa ir  v a lu e  t h ro u g h  o t h e r  c o m p re h e n s iv e  in c o m e

F in a n c ia l a s s e t s  a t  fa ir  v a lu e  t h ro u g h  o t h e r  c o m p re h e n s iv e  in c o m e  c o m p r is e :

> 

> 

 e q u it y  s e c u r it ie s  w h ic h  a re  n o t  h e ld  fo r  t r a d in g , a n d  fo r  w h ic h  t h e  g ro u p  h a s  m a d e  a n  ir re v o c a b le  e le c t io n  a t  in it ia l 
re c o g n it io n  t o  re c o g n is e  c h a n g e s  in  fa ir  v a lu e  t h ro u g h  O C I r a t h e r  t h a n  p ro fi t  o r  lo s s  a s  t h e s e  a re  s t r a t e g ic  in v e s t m e n t s  
a n d  t h e  g ro u p  c o n s id e re d  t h is  t o  b e  m o re  re le v a n t , a n d

 d e b t  s e c u r it ie s  w h e re  t h e  c o n t r a c t u a l c a s h  fl o w s  a re  s o le ly  p r in c ip le  a n d  in t e re s t  a n d  t h e  o b je c t iv e  o f t h e  g ro u p ’s  
b u s in e s s  m o d e l is  a c h ie v e d  b o t h  b y  c o lle c t in g  c o n t r a c t u a l c a s h  fl o w s  a n d  s e llin g  fi n a n c ia l a s s e t s .

(ii) E q u it y  in v e s t m e n t s  a t  fa ir  v a lu e  t h ro u g h  o t h e r  c o m p re h e n s iv e  in c o m e

 E q u it y  in v e s t m e n t s  a t  fa ir  v a lu e  t h ro u g h  o t h e r  c o m p re h e n s iv e  in c o m e  (F V O C I) c o m p r is e  t h e  fo llo w in g  in v e s t m e n t :

U n lis t e d  s e c u r it ie s  - C h a rg e  C C C V  L L C  

C o n s o l i d a t e d

2 0 2 0   
 $

2 0 1 9   
$

7 ,4 9 5 ,5 6 2  

7 ,4 9 5 ,5 6 2  

1 0 ,0 2 0 ,0 8 4

1 0 ,0 2 0 ,0 8 4

U p o n  d is p o s a l o f t h e s e  e q u it y  in v e s t m e n t s , a n y  b a la n c e  w it h in  t h e  O C I re s e r v e  fo r  t h e s e  e q u it y  in v e s t m e n t s  is  re c la s s ifi e d  
t o  re t a in e d  e a r n in g s  a n d  is  n o t  re c la s s ifi e d  t o  p ro fi t  o r  lo s s .

(iii) D e b t  in v e s t m e n t s  a t  fa ir  v a lu e  t h ro u g h  o t h e r  c o m p re h e n s iv e  in c o m e

T h e re  a re  n o  d e b t  in v e s t m e n t s  a t  fa ir  v a lu e  t h ro u g h  o t h e r  c o m p re h e n s iv e  in c o m e  (F V O C I) fo r  b o t h  y e a r s .

In fo r m a t io n  a b o u t  t h e  m e t h o d s  a n d  a s s u m p t io n s  u s e d  in  d e t e r m in in g  fa ir  v a lu e  is  p ro v id e d  in  N o t e  1 6 .

5 4  

A N N U A L  R E P O R T  2 0 2 0  - M A G N IS  E N E R G Y  T E C H N O L O G IE S

 
 
 
 
 
 
1 1 . D E V E L O P M E N T  A S S E T S

D e v e lo p m e n t  a s s e t s  

A C C O U N T I N G  P O L I C I E S  

C o n s o l i d a t e d

2 0 2 0   
 $

5 ,5 7 7 ,1 3 1  

5 ,5 7 7 ,1 3 1  

2 0 1 9   
$

5 ,4 6 6 ,4 9 2

5 ,4 6 6 ,4 9 2

D e v e lo p m e n t  a s s e t s  a re  s t a t e d  a t  c o s t  le s s  a c c u m u la t e d  d e p re c ia t io n  a n d  im p a ir m e n t  lo s s e s . C o s t  re p re s e n t  t h e  
a c c u m u la t io n  o f a ll t h e  c o m p e n s a t io n  a n d  re s e t t le m e n t  e x p e n d it u re  in c u r re d  b y , o r  o n  b e h a lf o f, t h e  e n t it y  in  re la t io n  t o  
a re a s  o f in t e re s t  in  w h ic h  c o n s t r u c t io n  o r  d e v e lo p m e n t  h a s  c o m m e n c e d . C o m p e n s a t io n  a n d  re s e t t le m e n t  e x p e n d it u re s  a re  
c a p it a lis e d  a s  d e v e lo p m e n t  a s s e t s .

D e v e lo p m e n t  c o s t s  in  w h ic h  t h e  G ro u p  h a s  a n  in t e re s t  a re  a m o r t is e d  o t h e r  t h e  life  o f t h e  a re a  o f in t e re s t  t o  w h ic h  t h e  
c o s t s  re la t e  o n  a  u n it s  o f p ro d u c t io n  b a s is  o v e r  t h e  e s t im a t e d  p ro v e n  a n d  p ro b a b le  o re  re s e r v e s  a n d  p ro p o r t io n  o f 
o t h e r  m e a s u re d  a n d  in d ic a t e d  m in e r a l re s o u rc e s  w h e re  t h e re  is  a  h ig h  d e g re e  o f c o n fi d e n c e  t h a t  t h e y  c a n  b e  e x t r a c t e d  
e c o n o m ic a lly . C h a n g e s  in  t h e  life  o f t h e  a re a  o f in t e re s t  a n d /o r  o re  re s e r v e s , a n d  o t h e r  m in e r a l re s o u rc e s  a re  a c c o u n t e d  fo r  
p ro s p e c t iv e ly .

I m p a ir m e n t

A t  e a c h  re p o r t in g  d a t e , t h e  G ro u p  re v ie w s  t h e  c a r r y in g  v a lu e s  o f it s  d e v e lo p m e n t  a s s e t s  t o  d e t e r m in e  w h e t h e r  t h e re  is  a n y  
in d ic a t io n  t h a t  t h o s e  a s s e t s  h a v e  b e e n  im p a ire d . If s u c h  a n  in d ic a t io n  e x is t s , t h e  re c o v e r a b le  a m o u n t  o f t h e  a s s e t , b e in g  t h e  
h ig h e r  o f t h e  a s s e t ’s  fa ir  v a lu e  le s s  c o s t s  t o  s e ll a n d  v a lu e  in  u s e , is  c o m p a re d  t o  t h e  a s s e t ’s  c a r r y in g  v a lu e . A n y  e x c e s s  o f t h e  
a s s e t ’s  c a r r y in g  v a lu e  o v e r  it s  re c o v e r a b le  a m o u n t  is  e x p e n s e d  t o  p ro fi t  o r  lo s s .

W h e re  it  is  n o t  p o s s ib le  t o  e s t im a t e  t h e  re c o v e r a b le  a m o u n t  o f a n  in d iv id u a l a s s e t , t h e  G ro u p  e s t im a t e s  t h e  re c o v e r a b le  
a m o u n t  o f t h e  c a s h -g e n e r a t in g  u n it  t o  w h ic h  t h e  a s s e t  b e lo n g s .

A s  a t  3 0  J u n e  2 0 2 0 , n o  im p a ir m e n t  t o  t h e  c a r r y in g  v a lu e  o f t h e  d e v e lo p m e n t  a s s e t s  h a s  b e e n  d e e m e d  n e c e s s a r y .

M o v e m e n t s  in  d e v e lo p m e n t  a s s e t s  

M o v e m e n t s  in  d e v e lo p m e n t  a s s e t s  d u r in g  t h e  fi n a n c ia l y e a r, a re  s e t  o u t  a s  fo llo w s :

A t  1  J u ly  2 0 1 9  

D e v e lo p m e n t  c o s t s  c a p it a lis e d  d u r in g  t h e  y e a r  

C u r re n c y  t r a n s la t io n  d iff e re n c e  

A t  3 0  J u n e  2 0 2 0  

D e v e l o p m e n t  A s s e t  

  $

  5 ,4 6 6 ,4 9 2

- 

1 1 0 ,6 3 9

5 ,5 7 7 ,1 3 1

M A G N IS  E N E R G Y  T E C H N O L O G IE S   - A N N U A L  R E P O R T  2 0 2 0  

5 5

 
 
 
  
  
 
 
 
 
 
 
N o t e s  t o  t h e  F in a n c ia l S t a t e m e n t s

1 2 .  (a )  P L A N T  A N D  E Q U I P M E N T  i M 3 N Y

R e c o n c ilia t io n  o f c a r r y in g  a m o u n t s  a t  t h e  b e g in n in g  a n d  e n d  o f t h e  y e a r.

A le v o  A c q u is it io n  E q u ip m e n t  

C o n s u lt in g  - D ir  o f L o g is t ic s  

E q u ip m e n t  R e lo c a t io n  S e r v ic e s  

In s u r a n c e  - N C  

S t o r a g e  a n d  u t ilit ie s  - N C  

T r a v e l - N C  

L e g a l S e r v ic e s  - A le v o  A PA  

A C C O U N T I N G  P O L I C I E S  

C o n s o l i d a t e d

2 0 2 0   
 $

7 ,2 7 1 ,5 5 3  

2 4 6 ,3 5 2  

2 ,5 0 4 ,2 4 3  

1 3 ,5 2 9  

1 ,8 9 7 ,4 3 0  

1 1 ,9 2 6  

2 6 ,6 1 7  

1 1 ,9 7 1 ,6 5 0  

2 0 1 9   
$

-

-

-

-

-

-

-

-

iM 3 N Y  P & E  a s s e t s  a re  s t a t e d  a t  c o s t  le s s  a c c u m u la t e d  d e p re c ia t io n  a n d  im p a ir m e n t  lo s s e s . C o s t s  re p re s e n t  t h e  
a c c u m u la t io n  o f a ll t h e  p la n t  a n d  e q u ip m e n t  a n d  e x p e n d it u re  in c u r re d  b y , o r  o n  b e h a lf o f, t h e  e n t it y  in  re la t io n  t o  t h e  
e s t a b lis h m e n t  a n d  p re p a r a t io n  o f p ro d u c t io n  p la n t .

iM 3 N Y  P & E  c o s t s  in  w h ic h  t h e  G ro u p  h a s  a n  in t e re s t  a re  a m o r t is e d  o v e r  t h e  p ro je c t e d  life  o f t h e  p ro d u c t io n  p la n t .

I m p a ir m e n t

In  O c t o b e r  2 0 1 9 , t h e  G ro u p  h a d  a n  in d e p e n d e n t  v a lu a t io n  u n d e r t a k e n  b y  R a m b o ll E n e rg y  w h ic h  c o n fi r m e d  t h a t  t h e  iM 3 N Y  
p la n t  a n d  e q u ip m e n t  w a s  v a lu e d  a t  U S D  7 1 ,3 4 0 ,6 2 0  . 

A s  a t  3 0  J u n e  2 0 2 0 , n o  im p a ir m e n t  t o  t h e  c a r r y in g  v a lu e  o f t h e  iM 3 N Y  P & E  a s s e t s  h a s  b e e n  d e e m e d  n e c e s s a r y .

M o v e m e n t s  in  d e v e lo p m e n t  a s s e t s  

M o v e m e n t s  in  d e v e lo p m e n t  a s s e t s  d u r in g  t h e  fi n a n c ia l y e a r, a re  s e t  o u t  a s  fo llo w s :

A t  1  J u ly  2 0 1 9  

iM 3 N Y  P & E  c o s t s  c a p it a lis e d  d u r in g  t h e  y e a r  

C u r re n c y  t r a n s la t io n  d iff e re n c e  

A t  3 0  J u n e  2 0 2 0  

i M 3 N Y  P & E  A s s e t  

  $

    -

1 1 ,9 7 1 ,6 5 0  

-

1 1 ,9 7 1 ,6 5 0

5 6  

A N N U A L  R E P O R T  2 0 2 0  - M A G N IS  E N E R G Y  T E C H N O L O G IE S

 
 
 
 
 
 
 
 
 
  
  
 
 
 
 
 
 
1 2 .  (b )  P L A N T  A N D  E Q U I P M E N T

R e c o n c ilia t io n  o f c a r r y in g  a m o u n t s  a t  t h e  b e g in n in g  a n d  e n d  o f t h e  y e a r.

P la n t  a n d  e q u ip m e n t  

O ffi c e  E q u ip m e n t  

S o f t w a re  

O ffi c e  fu r n it u re  a n d  fi t t in g s  

O ffi c e  im p ro v e m e n t s  

M o t o r  v e h ic le s  

C o n s o l i d a t e d

2 0 2 0   
 $

1 ,8 5 6  

9 ,7 5 6  

- 

9 3   

- 

4 ,3 8 6  

1 6 ,0 9 1  

2 0 1 9   
$

1 0 7

1 9 ,2 1 4

-

6 3 7

2 2 ,1 9 9  

1 1 ,1 4 1

5 3 ,2 9 8

P la n t   
a n d  
e q u i p m e n t  
$

O ffi c e  
e q u i p m e n t  
$

S o f t w a r e  
$

C o n s o l i d a t e d

O ffi c e  
f u r n i t u r e  
a n d  
fi t t i n g s   
$

O ffi c e  
I m p r o v e -
m e n t s   
$

M o t o r  
v e h i c l e s
$

T o t a l  
$

Y e a r  e n d e d  3 0  J u n e  2 0 2 0  
B a la n c e  a t  1  J u ly  2 0 1 9  n e t  o f  
a c c u m u la t e d  d e p re c ia t io n  

A d d it io n s  

D is p o s a ls  

C u r re n c y  t r a n s la t io n  d iff e re n c e s  

D e p re c ia t io n  c h a rg e  fo r  t h e  y e a r   

B a la n c e  a t  3 0  J u n e  2 0 2 0  n e t  o f  
a c c u m u la t e d  d e p re c ia t io n  

A t  3 0  J u n e  2 0 2 0  
C o s t  

A c c u m u la t e d  d e p re c ia t io n   
a n d  im p a ir m e n t  

N e t  c a r r y in g  a m o u n t  

Y e a r  e n d e d  3 0  J u n e  2 0 1 9  
B a la n c e  a t  1  J u ly  2 0 1 8  n e t  o f 
a c c u m u la t e d  d e p re c ia t io n  

A d d it io n s  

D is p o s a ls  

C u r re n c y  t r a n s la t io n  d iff e re n c e s  

1 0 7  

2 ,1 7 6  

- 

(4 9 ) 

(3 7 7 ) 

1 9 ,2 1 4  

- 

- 

5 6  

(9 ,5 1 4 ) 

1 ,8 5 6   

   9 ,7 5 6   

4 3 5 ,0 0 8  

9 7 ,1 4 4  

(4 3 3 ,1 5 2 ) 

(8 7 ,3 8 8 ) 

1 ,8 5 6   

9 ,7 5 6   

5 8 ,2 2 4  

- 

- 

5 1  

2 7 ,0 1 5  

1 1 ,3 6 0  

- 

4 5 1  

D e p re c ia t io n  c h a rg e  fo r  t h e  y e a r   

(5 8 ,1 6 8 ) 

(1 9 ,6 1 2 ) 

B a la n c e  a t  3 0  J u n e  2 0 1 9  n e t  o f 
a c c u m u la t e d  d e p re c ia t io n  

1 0 7  

1 9 ,2 1 4  

A t  3 0  J u n e  2 0 1 9  
C o s t  

A c c u m u la t e d  d e p re c ia t io n   
a n d  im p a ir m e n t  

N e t  c a r r y in g  a m o u n t  

4 2 7 ,3 0 3  

9 6 ,6 8 9  

(4 2 7 ,1 9 6 ) 

(7 7 ,4 7 5 ) 

1 0 7  

1 9 ,2 1 4  

- 

- 

- 

- 

- 

- 

- 

-  

- 

- 

- 

- 

- 

- 

- 

- 

- 

6 3 7  

2 2 ,1 9 9  

1 1 ,1 4 1  

- 

- 

4   

- 

- 

- 

- 

 4 4 9  

2 2 6  

5 3 ,2 9 8

2 ,1 7 6

-

6 8 6

(5 4 8 ) 

(2 2 ,6 4 8 ) 

(6 ,9 8 1 ) 

(4 0 ,0 6 8 )

9 3   

- 

4 ,3 8 6   

1 6 ,0 9 1

1 6 ,3 0 5  

6 6 ,6 4 9  

3 6 ,5 8 6  

6 5 1 ,6 9 1

(1 6 ,2 1 2 ) 

(6 6 ,6 4 9 ) 

(3 2 ,2 0 0 ) 

(6 3 5 ,6 0 0 )

9 3  

- 

4 ,3 8 6  

1 6 ,0 9 1

5 ,0 2 0  

5 0 ,8 4 0  

1 7 ,1 0 5  

1 5 8 ,2 0 5

- 

- 

- 

1 1 ,3 6 0

-

2 2 6  

3 ,9 3 3  

9 4 5  

5 ,6 0 5

(4 ,6 0 9 ) 

(3 2 ,5 7 4 ) 

(6 ,9 0 9 ) 

(1 2 1 ,8 7 2 )

6 3 7  

2 2 ,1 9 9   

1 1 ,1 4 1  

5 3 ,2 9 8

1 6 ,0 2 5  

6 5 ,3 2 7  

3 5 ,8 6 0  

6 4 1 ,2 0 4

(1 5 ,3 8 8 ) 

(4 3 ,1 2 8 ) 

(2 4 ,7 1 9 ) 

(5 8 7 ,9 0 6 )

6 3 7  

2 2 ,1 9 9  

1 1 ,1 4 1  

5 3 ,2 9 8

M A G N IS  E N E R G Y  T E C H N O L O G IE S   - A N N U A L  R E P O R T  2 0 2 0  

5 7

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
N o t e s  t o  t h e  F in a n c ia l S t a t e m e n t s

A C C O U N T I N G  P O L I C I E S  

E a c h  c la s s  o f p la n t  a n d  e q u ip m e n t  is  c a r r ie d  a t  c o s t , le s s , w h e re  a p p lic a b le , a n y  a c c u m u la t e d  d e p re c ia t io n  a n d  im p a ir m e n t  
lo s s e s .

T h e  c o s t  o f fi x e d  a s s e t s  c o n s t r u c t e d  w it h in  t h e  G ro u p  in c lu d e s  t h e  c o s t  o f m a t e r ia ls , d ire c t  la b o u r, b o r ro w in g  c o s t s  a n d  
a n  a p p ro p r ia t e  p ro p o r t io n  o f fi x e d  a n d  v a r ia b le  o v e r h e a d s . S u b s e q u e n t  c o s t s  a re  in c lu d e d  in  t h e  a s s e t ’s  c a r r y in g  a m o u n t  
o r  re c o g n is e d  a s  a  s e p a r a t e  a s s e t , a s  a p p ro p r ia t e , o n ly  w h e n  it  is  p ro b a b le  t h a t  fu t u re  e c o n o m ic  b e n e fi t s  a s s o c ia t e  w it h  
t h e  it e m  w ill fl o w  t o  t h e  G ro u p  a n d  t h e  c o s t  o f t h e  it e m  c a n  b e  m e a s u re d  re lia b ly . A ll o t h e r  re p a ir s  a n d  m a in t e n a n c e  a re  
c h a rg e d  t o  p ro fi t  a n d  lo s s  d u r in g  t h e  fi n a n c ia l p e r io d  in  w h ic h  t h e y  a re  in c u r re d .

D e p r e c ia t io n

D e p re c ia t io n  is  p ro v id e d  o n  p la n t  a n d  e q u ip m e n t , m o t o r  v e h ic le s , o ffi c e  e q u ip m e n t , fu r n it u re  a n d  fi t t in g s , a n d  is  c a lc u la t e d  
o n  a  s t r a ig h t  lin e  b a s is , c o m m e n c in g  fo r m  t h e  t im e  t h e  a s s e t  is  fi r s t  u s e d , s o  a s  t o  w r it e  o ff  t h e  n e t  c o s t s  o f e a c h  a s s e t  o v e r  
t h e  e x p e c t e d  u s e fu l life .

T h e  fo llo w in g  u s e fu l liv e s  a re  u s e d  in  t h e  c a lc u la t io n  o f d e p re c ia t io n :

> 

> 

> 

 P la n t  &  E q u ip m e n t  2  t o  5  y e a r s

 V e h ic le s  2  t o  5  y e a r s

 O ffi c e  e q u ip m e n t , fu r n it u re  &  fi t t in g s  2  t o  2 0  y e a r s

B o t h  a s s e t s  re s id u a l v a lu e  a n d  u s e fu l life  a re  re v ie w e d , a n d  a d ju s t e d  if a p p ro p r ia t e , a t  e a c h  re p o r t in g  d a t e . G a in s  a n d  lo s s e s  
o n  d is p o s a ls  a re  d e t e r m in e d  b y  c o m p a r in g  p ro c e e d s  w it h  c a r r y in g  a m o u n t . T h e s e  a re  in c lu d e d  in  p ro fi t  o r  lo s s .

I m p a ir m e n t

A t  e a c h  re p o r t in g  d a t e , t h e  G ro u p  re v ie w s  t h e  c a r r y in g  v a lu e s  o f it s  p la n t  &  e q u ip m e n t  a s s e t s  t o  d e t e r m in e  w h e t h e r  t h e re  
is  a n y  in d ic a t io n  t h a t  t h o s e  a s s e t s  h a v e  b e e n  im p a ire d . If s u c h  a n  in d ic a t io n  e x is t s , t h e  re c o v e r a b le  a m o u n t  o f t h e  a s s e t , 
b e in g  t h e  h ig h e r  o f t h e  a s s e t ’s  fa ir  v a lu e  le s s  c o s t s  t o  s e ll a n d  v a lu e  in  u s e , is  c o m p a re d  t o  t h e  a s s e t ’s  c a r r y in g  v a lu e . A n y  
e x c e s s  o f t h e  a s s e t ’s  c a r r y in g  v a lu e  o v e r  it s  re c o v e r a b le  a m o u n t  is  e x p e n s e d  t o  p ro fi t  o r  lo s s .

W h e re  it  is  n o t  p o s s ib le  t o  e s t im a t e  t h e  re c o v e r a b le  a m o u n t  o f a n  in d iv id u a l a s s e t , t h e  G ro u p  e s t im a t e s  t h e  re c o v e r a b le  
a m o u n t  o f t h e  c a s h -g e n e r a t in g  u n it  t o  w h ic h  t h e  a s s e t  b e lo n g s .

1 3 .  T R A D E  A N D  O T H E R  P A Y A B L E S

T r a d e  p a y a b le s  

O t h e r  p a y a b le s  a n d  a c c r u a ls  

A C C O U N T I N G  P O L I C I E S  

C o n s o l i d a t e d

2 0 2 0   
 $

1 ,1 2 7 ,1 2 0  

6 6 7 ,4 8 8  

1 ,7 9 4 ,6 0 8  

2 0 1 9   
$

9 4 ,7 3 4

4 9 6 ,0 6 6

5 9 0 ,8 0 0

T r a d e  a n d  o t h e r  p a y a b le s  a re  re c o g n is e d  w h e n  t h e  G ro u p  b e c o m e s  o b lig e d  t o  m a k e  fu r t h e r  p a y m e n t s  fro m  t h e  p u rc h a s e  
o f g o o d s  a n d  s e r v ic e s  a n d  a re  m e a s u re d  a t  a m o r t is e d  c o s t  u s in g  t h e  e ff e c t iv e  in t e re s t  m e t h o d , le s s  a n y  im p a ir m e n t  lo s s e s .

5 8  

A N N U A L  R E P O R T  2 0 2 0  - M A G N IS  E N E R G Y  T E C H N O L O G IE S

 
 
 
 
1 4 . P R O V I S I O N S

C u r r e n t

P ro v is io n  fo r  a n n u a l le a v e  (a ) 

N o n  C u r r e n t

P ro v is io n  fo r  lo n g  s e r v ic e  le a v e  (a ) 

C o n s o l i d a t e d

2 0 2 0   
$

1 2 9 ,2 9 0  

1 2 9 ,2 9 0  

2 0 1 9   
$

1 3 7 ,7 4 0

1 3 7 ,7 4 0

C o n s o l i d a t e d

2 0 2 0  
 $

4 3 ,3 2 3  

4 3 ,3 2 4  

2 0 1 9  
 $

4 0 ,8 2 1

4 0 ,8 2 1

(a ) A n n u a l L e a v e  a n d  L o n g  S e r v ic e  L e a v e

A n  e s t im a t e  o f a n n u a l le a v e  is  p ro v id e d  a f t e r  re v ie w in g  re le v a n t  w o r k p la c e  a g re e m e n t s  a n d  in d u s t r ia l a w a rd s  fo r  
re s p e c t iv e  e m p lo y e e s  a n d  d e t e r m in in g  e n t it le m e n t  a t  t h e  re p o r t in g  d a t e . T h e  c o s t  in c lu d e s  a n  a c c o u n t  o f d ire c t  
e m p lo y m e n t  c o s t s .

T h e  s ig n ifi c a n t  a s s u m p t io n s  a p p lie d  in  t h e  m e a s u re m e n t  o f t h is  p ro v is io n  in c lu d e  d e v is in g  p ro b a b ilit ie s  fo r  e m p lo y e e s  
c o m p ly in g  w it h  t h e  le g is la t iv e  re q u ire m e n t s  [y e a r s  o f s e r v ic e ] a n d  t h e  c o m p u t e d  e m p lo y m e n t  c o s t s  d is c o u n t e d  b y  u s in g  
R B A  b o n d  r a t e s  a p p lie d  fo r  t h e  re s p e c t iv e  y e a r s  o f s e r v ic e .

A C C O U N T I N G  P O L I C I E S  

P ro v is io n s  a re  re c o g n is e d  w h e n  t h e  G ro u p  h a s  a  p re s e n t  o b lig a t io n  [le g a l o r  c o n s t r u c t iv e ] a s  a  re s u lt  o f a  p a s t  e v e n t , a n d  
it  is  p ro b a b le  t h a t  a n  o u t fl o w  o f re s o u rc e s  e m b o d y in g  e c o n o m ic  b e n e fi t s  w ill b e  re q u ire d  t o  s e t t le  t h e  o b lig a t io n  a n d  a  
re lia b le  e s t im a t e  c a n  b e  m a d e  o f t h e  a m o u n t  o f t h e  o b lig a t io n .

P ro v is io n s  a re  m e a s u re d  a t  t h e  p re s e n t  v a lu e  o f m a n a g e m e n t ’s  b e s t  e s t im a t e  o f t h e  e x p e n d it u re  re q u ire d  t o  s e t t le  t h e  
p re s e n t  o b lig a t io n  a t  t h e  re p o r t in g  d a t e . If t h e  e ff e c t  o f t h e  t im e  v a lu e  o f m o n e y  is  m a t e r ia l, p ro v is io n s  a re  d e t e r m in e d  b y  
d is c o u n t in g  t h e  e x p e c t e d  fu t u re  c a s h  fl o w s  a t  a  p re -t a x  r a t e  t h a t  re fl e c t s  c u r re n t  m a r k e t  a s s e s s m e n t s  o f t h e  t im e  v a lu e  o f 
m o n e y  a n d , w h e re  a p p ro p r ia t e , t h e  r is k s  s p e c ifi c  t o  t h e  lia b ilit y . T h e  in c re a s e  in  t h e  p ro v is io n  re s u lt in g  fro m  t h e  p a s s a g e  o f 
t im e  is  re c o g n is e d  in  fi n a n c e  c o s t s .

a ) I s s u e d  c a p i t a l  a n d  o p t i o n s  

O rd in a r y  s h a re s  fu lly  p a id  

F u lly  p a id  o rd in a r y  s h a re s  c a r r y  o n  v o t e  p e r  s h a re  a n d  c a r r y  a  r ig h t  t o  d iv id e n d s . 
O p t io n  h o ld e r s  a re  n o t  e n t it le d  t o  v o t e  a n d  d iv id e n d .

b ) M o v e m e n t s  i n  f u l l y  p a i d  s h a r e s  

A t  1  J u ly  2 0 1 9  

S h a re s  is s u e d  

E x e rc is e  o f u n lis t e d  r ig h t s  a n d  o p t io n s  

T r a n s a c t io n  c o s t s  

R e a llo c a t io n  

A t  3 0  J u n e  2 0 2 0  

N u m b e r  o f   
s h a r e s  a n d  
o p t i o n s

2 0 2 0  
$

6 6 5 ,0 0 6 ,2 2 1  

1 2 8 ,6 2 5 ,9 0 5

6 1 1 ,1 3 5 ,9 9 6  

1 2 4 ,1 7 7 ,4 1 9

5 3 ,8 7 0 ,2 2 5  

5 ,0 0 0 ,0 0 0

- 

-

(5 5 1 ,5 1 4 )

-

6 6 5 ,0 0 6 ,2 2 1  

1 2 8 ,6 2 5 ,9 0 5

M A G N IS  E N E R G Y  T E C H N O L O G IE S   - A N N U A L  R E P O R T  2 0 2 0  

5 9

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
N o t e s  t o  t h e  F in a n c ia l S t a t e m e n t s

1 5 . C O N T R I B U T E D  E Q U I T Y
D u r in g  t h e  y e a r  t h e  C o m p a n y  r a is e d  fu n d s  fro m  e q u it y  a s  fo llo w s : 

> 

> 

  $ 1 ,5 0 0 ,0 0 0  (2 0 1 9 : $ 1 1 ,1 0 0 ,0 0 0 ) fro m  s h a re  p la c e m e n t s  o f 2 0 ,0 0 0 ,0 0 0  fu lly  p a id  o rd in a r y  s h a re s . T r a n s a c t io n  c o s t s  
a m o u n t e d  t o  $ 4 0 ,5 7 7  (2 0 1 9 : $ 7 0 2 ,7 9 5 ). 

 $ 3 ,5 0 0 ,0 0 0  (2 0 1 9 : $ N il) fro m  t h e  N e g m a  S u b s c r ip t io n  A g re e m e n t  o f 3 3 ,8 7 0 ,2 2 5  fu lly  p a id  o rd in a r y  s h a re s . T r a n s a c t io n  
c o s t s  a m o u n t e d  t o  $ 5 1 0 ,9 3 8  (2 0 1 9 : $ N il).

c ) C a p it a l m a n a g e m e n t

M a n a g e m e n t ’s  p r im e  o b je c t iv e  w h e n  m a n a g in g  t h e  G ro u p ’s  c a p it a l is  t o  e n s u re  t h e  e n t it y  c o n t in u e s  a s  a  g o in g  c o n c e r n  
a s  w e ll a s  e n s u r in g  t h a t  fu n d s  e x p e n d e d  p ro v id e  s h a re h o ld e r s  w it h  o p t im a l re t u r n s . T h e  c a p it a l s t r u c t u re  is  in t e n d e d  t o  
p ro v id e  t h e  lo w e s t  c o s t  o f c a p it a l a v a ila b le  t o  t h e  G ro u p  c o n s id e r in g  it s  p re s e n t  p h a s e  o f o p e r a t io n s .

C a p it a l r is k  m a n a g e m e n t  

O v e r  t h e  c o m in g  y e a r  t h e  g ro u p  is  p ro p o s in g  t o  u n d e r t a k e  a n  e x p lo r a t io n  p ro g r a m  t h a t  re q u ire s  a  s ig n ifi c a n t  o u t la y  o f 
fu n d s . M a n a g e m e n t  m o n it o r s  t h is  e x p e n d it u re  a g a in s t  t h e  b u d g e t  a p p ro v e d  b y  t h e  B o a rd . A  n e a r  t e r m  c a p it a l r a is in g  o r  
a s s e t  s a le  s h o u ld  e n s u re  t h e  g ro u p  h a s  a  s a fe t y  m a r g in  o f fu n d s  a v a ila b le  t o  c o n t in u e  w it h  it s  d e s ire d  le v e l o f o p e r a t io n s  – 
re fe r  N o t e  1 .

In  o rd e r  t o  m a in t a in  o r  a d ju s t  t h e  c a p it a l s t r u c t u re , t h e  c o n s o lid a t e d  e n t it y  m a y  a d ju s t  t h e  a m o u n t  o f d iv id e n d s  p a id  t o  
s h a re h o ld e r s , re t u r n  c a p it a l t o  s h a re h o ld e r s , is s u e  n e w  s h a re s  o r  s e ll a s s e t s  t o  re d u c e  d e b t .

T h e  c a p it a l r is k  m a n a g e m e n t  p o lic y  re m a in s  u n c h a n g e d  fro m  t h e  3 0  J u n e  2 0 2 0  A n n u a l R e p o r t .

1 6 .  F A I R  V A L U E  M E A S U R E M E N T
T h e  fa ir  v a lu e  o f fi n a n c ia l a s s e t s  a n d  fi n a n c ia l lia b ilit ie s  a re  t h e  e q u iv a le n t  t o  t h e  n e t  c a r r y in g  a m o u n t . F a ir  v a lu e s  a re  t h o s e  
a m o u n t s  a t  w h ic h  a n  a s s e t  c o u ld  b e  e x c h a n g e d , o r  a  lia b ilit y  s e t t le d , b e t w e e n  k n o w le d g e a b le , w illin g  p a r t ie s  in  a n  a r m ’s  
le n g t h  t r a n s a c t io n .

T h e  c a r r y in g  a m o u n t s  o f c a s h , t r a d e  a n d  o t h e r  re c e iv a b le s  a n d  t r a d e  a n d  o t h e r  p a y a b le s  a re  a s s u m e d  t o  a p p ro x im a t e  t h e ir  
fa ir  v a lu e s  d u e  t o  t h e ir  s h o r t -t e r m  n a t u re .

T h e  G ro u p  c la s s ifi e d  t h e  fa ir  v a lu e  o f it s  o t h e r  fi n a n c ia l in s t r u m e n t s  a c c o rd in g  t o  t h e  fo llo w in g  fa ir  v a lu e  h ie r a rc h y  b a s e d  o n  
t h e  a m o u n t  o f o b s e r v a b le  in p u t s  u s e d  t o  v a lu e  t h e  in s t r u m e n t s :

T h e  t h re e  le v e ls  o f t h e  fa ir  v a lu e  h ie r a rc h y  a re :

> 

 L e v e l 1 -   V a lu e s  b a s e d  o n  u n a d ju s t e d  q u o t e d  p r ic e s  a v a ila b le  in  a c t iv e  m a r k e t s  fo r  id e n t ic a l a s s e t s  o r  lia b ilit ie s  a s  o f t h e  

re p o r t in g  d a t e .

> 

 L e v e l 2 -   V a lu e s  b a s e d  o n  in p u t s , in c lu d in g  q u o t e d  p r ic e s , t im e  v a lu e  a n d  v o la t ilit y  fa c t o r s , w h ic h  c a n  b e  s u b s t a n t ia lly  

o b s e r v e d  o r  c o r ro b o r a t e d  in  t h e  m a r k e t p la c e . P r ic e s  in  L e v e l 2  a re  e it h e r  d ire c t ly  o r  in d ire c t ly  o b s e r v a b le  a s  o f 
t h e  re p o r t in g  d a t e .

> 

 L e v e l 3 -  V a lu e s  b a s e d  o n  p r ic e s  o r  v a lu a t io n  t e c h n iq u e s  t h a t  a re  n o t  b a s e d  o n  o b s e r v a b le  m a r k e t  d a t a .

F i n a n c i a l  a s s e t s  m e a s u r e d  a t  f a i r  v a l u e

F in a n c ia l a s s e t s  a t  F V O C I 

In v e s t m e n t  a c c o u n t e d  fo r  u s in g  t h e  e q u it y  m e t h o d  

L e v e l  i n  F a i r  V a l u e  h i e r a r c h y

C o n s o l i d a t e d

2 0 2 0   
$

2 0 1 9   
$

3  

3  

7 ,4 9 5 ,5 6 2  

1 0 ,0 2 0 ,0 8 4

- 

5 ,2 9 1 ,1 0 5

7 ,4 9 5 ,5 6 2  

1 5 ,3 1 1 ,1 8 9

6 0  

A N N U A L  R E P O R T  2 0 2 0  - M A G N IS  E N E R G Y  T E C H N O L O G IE S

 
 
 
 
F in a n c ia l a s s e ts  a t F V O C I

F in a n c ia l a s s e t s  a t  F V O C I c o m p r is e  t h e  G ro u p ’s  in v e s t m e n t  in  p r iv a t e  U S  b a s e d , lit h iu m -io n  b a t t e r y  t e c h n o lo g y  g ro u p , 
C h a rg e  C C C V  L L C  (‘C 4 V ’) w h ic h  is  a c c o u n t e d  fo r  a s  a  fi n a n c ia l a s s e t  m e a s u re d  a t  fa ir  v a lu e  t h ro u g h  o t h e r  c o m p re h e n s iv e  
in c o m e . T h e  in v e s t m e n t  is  n o t  q u o t e d  in  a n  a c t iv e  m a r k e t  a n d  a c c o rd in g ly  t h e  fa ir  v a lu e  o f t h is  in v e s t m e n t  is  in c lu d e d  
w it h in  L e v e l 3  o f t h e  h ie r a rc h y .

C 4 V  h a s  e x p e r t is e  a n d  p a t e n t e d  t e c h n o lo g y  in  lit h iu m -io n  b a t t e r y  c o m p o s it io n  a n d  m a n u fa c t u re . C 4 V  h a s  e x e c u t e d  
b in d in g  a g re e m e n t s  t o  re c e iv e  ro y a lt y  in c o m e  fro m  t h e  e x c lu s iv e  u s e  o f b o t h  it s  p a t e n t e d  a n o d e  c h e m is t r y  a n d  it s  c o b a lt  
a n d  n ic k e l fre e  c a t h o d e  c h e m is t r y . C 4 V  a ls o  re t a in s  t h e  r ig h t  t o  re c e iv e  a  o n c e  o ff  re s e r v a t io n  fe e  u p o n  t h e  g r a n t in g  o f 
e x c lu s iv e  u s e  o f it s  p a t e n t e d  IP  a t  e a c h  o f t h e  a p p ro v e d  iM 3  b a t t e r y  p la n t s .

T h e  ro y a lt y  in c o m e  is  d e p e n d e n t  u p o n  t h e  s u c c e s s fu l d e v e lo p m e n t  o f t h re e  k e y  p ro je c t s  w h ic h  in v o lv e s  e it h e r  t h e  m in in g  
a n d  p ro c e s s in g  o f n a t u r a l fl a k e  g r a p h it e  o r  t h e  p ro d u c t io n  o f lit h iu m -io n  b a t t e r ie s . 

C 4 V  a ls o  h a s  a  4 5 .1 8 %  s t r a t e g ic  in v e s t m e n t  in  a  N e w  Yo r k  lit h iu m -io n  b a t t e r y  p ro d u c t io n  p la n t , Im p e r iu m 3  N e w  Yo r k  In c  
(‘iM 3 N Y ’). iM 3 N Y  o w n s  b a t t e r y  p la n t  a s s e t s  lo c a t e d  in  a  p la n n e d  lit h iu m -io n  b a t t e r y  m a n u fa c t u r in g  fa c ilit y  b a s e d  a t  t h e  
H u ro n  C a m p u s  in  E n d ic o t t , N e w  Yo r k . 

V a lu a t io n  T e c h n iq u e s - L e v e l 3

T h e  G ro u p  h a s  u t ilis e d  a  c o m b in a t io n  o f t h e  d is c o u n t e d  c a s h  fl o w  (D C F ) m e t h o d  t o g e t h e r  w it h  t h e  fa ir  v a lu e  o f C 4 V ’s  
s t r a t e g ic  in v e s t m e n t  in  iM 3  N Y  t o  c a lc u la t e  t h e  e n t e r p r is e  v a lu e  o f C 4 V . T h e  D C F  in v o lv e s  t h e  p ro je c t io n  o f a  s e r ie s  
o f c a s h  fl o w s  a n d  t o  t h is  a n  a p p ro p r ia t e  m a r k e t  d e r iv e d  d is c o u n t  r a t e  is  a p p lie d  t o  e s t a b lis h  t h e  p re s e n t  v a lu e  o f t h e  
in c o m e  s t re a m . T h e  fa ir  v a lu e  o f C 4 V ’s  in v e s t m e n t  in  iM 3 N Y  h a s  b e e n  d e t e r m in e d  b y  in d e p e n d e n t  v a lu a t io n  o f t h e  p la n t  
e q u ip m e n t  p u rc h a s e d  in  2 0 1 8 .

T h e  v a lu a t io n  o f p la n t  e q u ip m e n t  w a s  u n d e r t a k e n  in  A u g u s t  2 0 1 9  b y  le a d in g  e n g in e e r in g  fi r m  O ’B r ie n  &  G e re  w h o  
a s s e s s e d  a ll t h e  it e m s  p u rc h a s e d . In  it s  c u r re n t  s t a t u s  a n d  c o n d it io n , t h e  e x t e r n a l v a lu e r  h a s  a t t r ib u t e d  a  v a lu a t io n  o f 
U S $ 7 1 .3 4  m illio n  o f w h ic h  C 4 V  h a s  a  d ire c t  in t e re s t  e q u iv a le n t  t o  U S $ 3 2 .2 3  m illio n .

T h e  G ro u p  d e c id e s  it s  v a lu a t io n  p o lic ie s  a n d  p ro c e d u re s  in  lin e  w it h  it s  b u s in e s s  o b je c t iv e s  a n d  w it h  re fe re n c e  t o  t h e  
G ro u p ’s  a s s e s s m e n t  o f it s  in v e s t m e n t  in  in d iv id u a l p ro je c t s . P o s it io n  p a p e r s  a re  p re p a re d  t o  a p p r is e  t h e  a u d it  c o m m it t e e  
o f t h e  v a lu a t io n  t e c h n iq u e s  a d o p t e d . T h e  G ro u p  re v ie w s  t h e  v a lu a t io n  o f it s  fi n a n c ia l a s s e t s  a t  F V O C I a t  le a s t  o n c e  e v e r y  s ix  
m o n t h s , in  lin e  w it h  t h e  g ro u p ’s  h a lf-y e a r ly  re p o r t in g  re q u ire m e n t s . C h a n g e s  in  le v e l 3  fa ir  v a lu e s  a re  a n a ly s e d  a t  t h e  e n d  o f 
e a c h  re p o r t in g  p e r io d  d u r in g  t h is  re v ie w .

Q u a n t it a t iv e  in f o r m a t io n  o n  s ig n ifi c a n t  u n o b s e r v a b le  in p u t s - L e v e l 3

T h e  fo llo w in g  t a b le  s u m m a r is e s  t h e  q u a n t it a t iv e  in fo r m a t io n  a b o u t  t h e  s ig n ifi c a n t  u n o b s e r v a b le  in p u t s  u s e d  in  t h e  fa ir  
v a lu e  m e a s u re m e n t  o f t h e  G ro u p ’s  in v e s t m e n t  in  C 4 V . 

U n o b s e r v a b l e  i n p u t s

V a l u a t i o n  
M e t h o d

N a c h u  G r a p h i t e  P r o j e c t

I m p e r i u m 3  
T o w n s v i l l e

I m p e r i u m 3  
N e w  Y o r k

R e l a t i o n s h i p  o f   
U n o b s e r v a b l e  i n p u t   
t o  f a i r  v a l u e

P ro je c t S ta tu s  

D C F  

P re lim in a r y  P re lim in a r y   
(B a n k a b le  F e a s ib ility   
S tu d y )

(F e a s ib ility  S tu d y ) 

n /a  

T h e  m o re  a d v a n c e d  th e  
p ro je c t th e  h ig h e r th e  fa ir v a lu e  

T im e lin e  to  p ro d u c tio n  

D C F  

2  y e a rs  p o s t fi n a n c e  

2  y e a rs  p o s t fi n a n c e  

n /a  

P ro je c t life   

D C F  

R is k  a d ju s te d  d is c o u n t ra te  

D C F  

2 0 y rs  

2 0 % 

2 0 y rs  

4 5 % 

C a p ita l re q u ire d  

D C F  

A U $ 4 0 0 M  (U S $ 2 7 0 M ) 

A U $ 3 B illio n  

E x p e c te d  a n n u a l v o lu m e s  

D C F  

2 4 0 ,0 0 0  to n n e  p a  

1 8 G W h  

Va lu a tio n  o f b a tte r y   
m a n u fa c tu rin g  e q u ip m e n t 

F V  

n /a  

n /a  

T h e  lo n g e r th e  tim e  to  p ro d u c tio n   
th e  lo w e r th e  fa ir v a lu e

T h e  lo n g e r th e  life s p a n  th e  h ig h e r  
th e  fa ir v a lu e

T h e  h ig h e r th e  d is c o u n t ra te  th e   
lo w e r th e  fa ir v a lu e

T h e  h ig h e r th e  c a p ita l re q u ire d  th e   
lo w e r th e  fa ir v a lu e  

T h e  h ig h e r th e  a n n u a l v o lu m e s  th e   
h ig h e r th e  fa ir v a lu e

n /a  

n /a  

n /a  

n /a  

A U $ 1 0 2 M  
(U S $ 7 1 .3 4 ) 

T h e  lo w e r th e  re c o v e ra b le   
a m o u n t o f th e  e q u ip m e n t  
th e  lo w e r th e  fa ir v a lu e

M A G N IS  E N E R G Y  T E C H N O L O G IE S   - A N N U A L  R E P O R T  2 0 2 0  

6 1

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
N o t e s  t o  t h e  F in a n c ia l S t a t e m e n t s

P r o j e c t  a n d  I n v e s t m e n t  R is k  

T h e  fa ir  v a lu e  o f t h e  G ro u p ’s  in v e s t m e n t  in  C 4 V  is  m e a s u re d  a g a in s t  t h e  e n t e r p r is e  v a lu e  o f C 4 V  w h ic h  is  c a lc u la t e d  u s in g  
fa ir  v a lu e  in c o r p o r a t in g  p re s e n t  v a lu e  t e c h n iq u e s . T h e  p re s e n t  v a lu e  c a lc u la t io n s  u s e  c a s h  fl o w s  t h a t  a re  e s t im a t e s  r a t h e r  
t h a n  k n o w n  a m o u n t s . T h e re  is  in h e re n t  u n c e r t a in t y  in  t h is  v a lu a t io n  t e c h n iq u e . A s  a  re s u lt , t h e  fa ir  v a lu e  is  e x p o s e d  t o  
v a r io u s  fo r m s  o f r is k . T h e  fa ir  v a lu e  o f a s  a t  3 0  J u n e  2 0 2 0  is  m e a s u re d  u s in g  a  n u m b e r  o f s ig n ifi c a n t  u n o b s e r v a b le  in p u t s . 
R is k s  s p e c ifi c  t o  t h e s e  u n o b s e r v a b le  in p u t s  a re  d e t a ile d  b e lo w  a n d  h a v e  b e e n  fa c t o re d  in t o  t h e  in d iv id u a l p ro je c t s  t h ro u g h  
t h e  r is k  a d ju s t e d  d is c o u n t  r a t e  a p p lie d .

T h e  G ro u p  h a s  p e r fo r m e d  d e t a ile d  r is k  a n a ly s is  u s in g  in t e r n a t io n a l fr a m e w o r k s  o n  e a c h  o f t h e  in d iv id u a l p ro je c t s  d u r in g  
fe a s ib ilit y  s t u d y . In  p e r fo r m in g  t h is  a n a ly s is , t h e  G ro u p  h a s  id e n t ifi e d  a re a s  o f k e y  r is k  a n d  h a s  d e v e lo p e d  r is k  m a n a g e m e n t  
a n d  m it ig a t io n  s t r a t e g ie s  t o  im p le m e n t  in  o rd e r  t o  re d u c e  t h e  lik e ly  e x p o s u re  t o  t h e s e  r is k s . 

P r o je c t  s t a t u s

T h e  c u r re n t  s t a t u s  o f t h e  p ro je c t s  h a s  b e e n  d e t e r m in e d  a s  b e in g  p re lim in a r y . T h e  p ro je c t s  a re  a ls o  c h a r a c t e r is e d  a s  b e in g  
g re e n fi e ld  p ro je c t s  w h ic h  re la t e s  t o  t h e  la c k  o f e x is t in g  fa c ilit y  t o  v e r ify  o u t c o m e s .

T h e re  is  a  r is k  t h a t  t h e  p ro je c t s  w ill n o t  b e  a d v a n c e d  d u e  t o  t h e  s ig n ifi c a n t  c a p it a l re q u ire d  t o  c o m m e n c e  c o n s t r u c t io n . 
T h e re  is  a ls o  a  r is k  t h a t  le g is la t iv e  a p p ro v a ls  re q u ire d  t o  c o m m e n c e  c o n s t r u c t io n  m a y  b e  d e la y e d  o r  n o t  g r a n t e d . P ro je c t  
s t a t u s  is  a lig n e d  t o  t h e  t im e lin e  t o  p ro d u c t io n . A n y  s lip p a g e  in  t im e lin e  m ile s t o n e  w ill re d u c e  t h e  fa ir  v a lu e . 

D e t a ile d  im p le m e n t a t io n  p la n s  h a v e  b e e n  e s t a b lis h e d  fo r  e a c h  o f t h e  in d iv id u a l p ro je c t s . T h e  im p le m e n t a t io n  p la n  
id e n t ifi e s  a re a s  t h a t  a re  c r it ic a l t o  t h e  s u c c e s s fu l a d v a n c e m e n t  o f t h e  p ro je c t s . S t r a t e g ie s  t o  m it ig a t e  a n d  m a n a g e  r is k  
a s s o c ia t e d  w it h  p ro je c t  s u c c e s s  h a v e  b e e n  d o c u m e n t e d  in  d e t a il fo r  im p le m e n t a t io n . T h is  in c lu d e s  p re -fi n a n c e  t e s t in g  
a n d  m a r k e t  d e v e lo p m e n t  w o r k . E s t a b lis h m e n t  o f s t r a t e g ic  p a r t n e r s h ip s  w it h  c re d it a b le  in d u s t r y  p ro fe s s io n a ls  s u c h  a s  
e n g in e e r in g , p ro c u re m e n t  a n d  c o n s t r u c t io n  c o n t r a c t o r s , o r ig in a l e q u ip m e n t  m a n u fa c t u re r s , a n d  fi n a n c in g  p ro fe s s io n a ls  
s u c h  a s  N a t io n a l A u s t r a lia  B a n k  is  a ls o  c o n s id e re d  c r it ic a l in  re d u c in g  t h e  r is k  o f g re e n fi e ld  o p e r a t io n s . 

T im e lin e  t o  p r o d u c t io n

S c h e d u lin g  fo r  t h e  p ro je c t s  h a s  n o t  fa c t o re d  s ig n ifi c a n t  d e la y s  o r  c o s t  o v e r r u n s . F a c t o r s  w h ic h  c o u ld  c re a t e  s ig n ifi c a n t  
d e la y s  in c lu d e  a d v e r s e  w e a t h e r  c o n d it io n s , c o n s t r u c t io n  r is k s  p a r t ic u la r ly  in -g ro u n d  r is k s , t h e  s e c u r in g  o f w a t e r  s u p p ly  fo r  
c o n s t r u c t io n  a n d  re q u is it e  a p p ro v a ls  fo r  in fr a s t r u c t u re  u p g r a d e s .

T h e re  is  a  r is k  t h a t  s u c h  d e la y s  o r  c o s t  o v e r r u n s  w ill im p a c t  t h e  p a y b a c k  c a p a b ilit y  o f t h e  p ro je c t  a n d  re d u c e  t h e  o v e r a ll 
c a s h fl o w s . A n  in c re a s e  t o  t h e  t im e lin e  t o  p ro d u c t io n  w ill re s u lt  in  a  lo w e r  fa ir  v a lu e .

C a p it a l r e q u ir e d

T h e  e s t im a t e d  t o t a l c o n s t r u c t io n  c o s t s  o f t h e  1 8 G w h  fa c t o r y  in  To w n s v ille  is  A U $ 3 B n . P ro je c t  d e v e lo p m e n t  h a s  b e e n  
p h a s e d  in t o  3  s t a g e s  o f 6 G W h  t o  re d u c e  t h e  u p fro n t  c a p it a l re q u ire m e n t . S t a g e  O n e  c o n s t r u c t io n  c o s t s  a re  e s t im a t e d  t o  
b e  A U $ 1 .1 2 B n . W it h o u t  a  d e m o n s t r a t e d  a b ilit y  in  c a p it a l r a is in g  o f t h is  q u a n t u m , t h e re  is  a  r is k  t h a t  t h e  c a p it a l re q u ire d  
w o n ’t  b e  s e c u re d  o r  w ill b e  s ig n ifi c a n t ly  d e la y e d . A s  t h e re  is  n o  p r io r  h is t o r y  o f m a n u fa c t u re  a t  s c a le , t h e re  is  a ls o  a  r is k  t h a t  
fi n a n c e  m a y  b e  o n  le s s  fa v o u r a b le  t e r m s .

T h e re  is  a ls o  r is k  t h a t  b a t t e r y  c e ll o ff t a k e  a g re e m e n t s  w ill n o t  b e  s e c u re d  fo r  e a c h  o f t h e  t h re e  s t a g e s  o r  t h a t  t h e  p r ic e  w ill 
b e  le s s  t h a n  e s t im a t e d . T h is  c o u ld  im p a c t  t h e  p ro je c t s  a b ilit y  t o  re p a y  p ro je c t  fi n a n c e  a n d  re s u lt  in  a  lo w e r  fa ir  v a lu e . 

To  m it ig a t e  t h e s e  r is k s , iM 3 T S V  h a s  a p p o in t e d  N a t io n a l A u s t r a lia  B a n k  (‘N A B ’) in  t h e  c a p a c it y  o f fi n a n c ia l a d v is o r  t o  jo in t ly  
d e v e lo p  t h e  P ro je c t  fu n d in g  s t r a t e g y  a s  p a r t  o f t h is  fe a s ib ilit y  s t u d y . In  t h e  ro le  o f fi n a n c ia l a d v is o r, N A B  b r in g s  e x t e n s iv e  
e x p e r ie n c e  o n  s e e k in g  fu n d in g  fo r  la rg e  p ro je c t s  in  t h e  re n e w a b le s  s e c t o r  in c lu d in g  w o r k in g  a lo n g s id e  g o v e r n m e n t  
b o d ie s , t o  a d v is e  p ro je c t s  in  N o r t h  Q u e e n s la n d .

iM 3 T S V  w ill a ls o  im p le m e n t  a  t e s t in g  a n d  m a r k e t  d e v e lo p m e n t  p ro g r a m  in v o lv in g  b a t t e r y  p ro d u c t io n  t e s t in g  in  a  
c o m m e rc ia l s e t t in g  a t  e q u ip m e n t  v e n d o r  fa c ilit ie s . G e n e r a t e d  p ro d u c t  w ill b e  p ro v id e d  fo r  c u s t o m e r  e v a lu a t io n  a n d  
q u a lifi c a t io n  t o w a rd s  p ro c u r in g  o ff t a k e  c o n t r a c t s . T h is  p ro g r a m  w ill t a k e  p la c e  p r io r  t o  s e c u r in g  t h e  c o n s t r u c t io n  c o s t s  fo r  
S t a g e  O n e . S e c u r in g  o ff t a k e  fo llo w in g  c o n fi r m a t io n  o f p ro d u c t  s p e c ifi c a t io n  w ill a s s is t  is  s e c u r in g  p ro je c t  fu n d in g .

T h e  t o t a l c o n s t r u c t io n  o f t h e  N a c h u  G r a p h it e  P ro je c t  is  e s t im a t e d  t o  c o s t  A U D $ 4 0 0 M  (U S $ 2 7 0 M ). T h is  is  a ls o  c o n s id e re d  a  
s ig n ifi c a n t  a m o u n t  o f c a p it a l. T h is  is  c o m p o u n d e d  b y  t h e  s o v e re ig n  r is k  o f d e v e lo p in g  a  g r a p h it e  m in e  in  T a n z a n ia . T h e re  is  
a  r is k  t h a t  t h e  c a p it a l re q u ire d  is  n o t  s e c u re d  o r  t h a t  t h e  fu n d in g  w ill b e  o n  le s s  fa v o u r a b le  t e r m s . T h e  G ro u p  h a s  id e n t ifi e d  
t a r g e t  fu n d in g  p a r t n e r s  w it h  e x p e r ie n c e  in  T a n z a n ia , w h o  h a v e  in -d e p t h  a p p re c ia t io n  a n d  u n d e r s t a n d in g  o f d e v e lo p in g  a  
la rg e -s c a le  re s o u rc e  p ro je c t s  in  a  ju r is d ic t io n  w it h  h ig h  s o v e re ig n  r is k .

6 2  

A N N U A L  R E P O R T  2 0 2 0  - M A G N IS  E N E R G Y  T E C H N O L O G IE S

E x p e c t e d  a n n u a l p r o d u c t io n

P ro je c t  d e v e lo p m e n t  o f iM 3  T S V  h a s  b e e n  p h a s e d  in t o  t h re e  s t a g e s  o f 6 G W h  e a c h . T h e  b e n e fi t  o f a  s t a g e  a p p ro a c h  
is  t o  re d u c e  t h e  u p fro n t  c a p it a l re q u ire m e n t  b u t  a ls o  t o  a llo w  fo r  t h e  p ro je c t  e x p a n s io n  t o  o c c u r  in  lin e  w it h  m a r k e t  
d e v e lo p m e n t . 

H o w e v e r, t h e re  is  a  r is k  t h a t  c a p it a l fo r  t h e  s e c o n d  o r  t h ird  s t a g e  m a y  n o t  b e  s e c u re d  o r  t h a t  c h a n g e s  in  g lo b a l c o m p e t it io n  
a n d  t e c h n o lo g ic a l a d v a n c e m e n t  o v e r  c o n s t r u c t io n  a n d  t h e  fi r s t  s t a g e  m a y  im p a c t  t h e  v ia b ilit y  o f e x p a n s io n . 

T h e re  is  a ls o  a  r is k  t h a t  t h e  p ro je c t  w ill a c h ie v e  lo w e r  b a t t e r y  c e ll p ro d u c t io n  y ie ld s  t h a n  fo re c a s t .

To  m it ig a t e  t h e s e  r is k s  a n  e x t e n s iv e  p ro d u c t  d e v e lo p m e n t  a n d  t e s t in g  p ro g r a m  w ill b e  u n d e r t a k e n  b y  iM 3  T S V  p r io r  t o  
s e c u r in g  S t a g e  O n e  fu n d in g . S u c h  t e s t in g  p ro g r a m s  o n c e  fu lly  im p le m e n t e d  c a n  b e  u t ilis e d  t o  t r a in  e m p lo y e e s  p r io r  t o  
c o n s t r u c t io n  a n d  c o m m is s io n in g  t o  e n s u re  a n  in e x p e r ie n c e d  w o r k fo rc e  d o e s  n o t  d e la y  r a m p  u p .

T h e  N a c h u  G r a p h it e  P ro je c t  h a s  b e e n  re p o r t e d  a s  t h e  la r g e s t  m in e r a l re s o u rc e s  o f la r g e  fl a k e  g r a p h it e  in  t h e  w o r ld . T h e re  
is  a  r is k , a t  a  p ro d u c t io n  r a t e  o f 2 4 0 ,0 0 0 t p a , t h a t  s u p p ly  w ill o u t s t r ip  d e m a n d  re s u lt in g  in  a n  u n s u s t a in a b le  p ro d u c t io n  r a t e . 
T h e  p ro je c t  is  a ls o  s u b je c t  t o  s ig n ifi c a n t  s o v e re ig n  r is k  a r is in g  fro m  c h a n g e s  in  le g is la t io n , g o v e r n m e n t , e n v iro n m e n t a l 
p e r m it s , e m p lo y m e n t , d is e a s e , c o m m u n it y  re la t io n s  a ll o f w h ic h  c o u ld  im p a c t  t h e  a n n u a l p ro d u c t io n . A  re d u c t io n  in  t h e  
e x p e c t e d  a n n u a l p ro d u c t io n  w o u ld  re d u c e  t h e  fa ir  v a lu e . 

T h e  N a c h u  G r a p h it e  P ro je c t  is  h o w e v e r  c a p a b le  o f b e in g  p h a s e d  in t o  t w o  s t a g e s  o f p ro d u c t io n . T h e  s t a g e d  a p p ro a c h  
a llo w s  t h e  p ro je c t  r is k s  a n d  t h e  G ro u p ’s  re s p o n s e  t o  b e  t e s t e d  a t  a  s m a lle r  s c a le  w it h  re d u c e d  c a p it a l o u t la y .

R o y a lt ie s  &  R e s e r v a t io n  F e e

C 4 V  h a s  e x e c u t e d  b in d in g  a g re e m e n t s  t o  re c e iv e  ro y a lt y  in c o m e  fro m  t h e  e x c lu s iv e  u s e  o f b o t h  it s  p a t e n t e d  a n o d e  
c h e m is t r y  a n d  it s  c o b a lt  a n d  n ic k e l fre e  c a t h o d e  c h e m is t r y . C 4 V  a ls o  re t a in s  t h e  r ig h t  t o  re c e iv e  a  o n c e  o ff  re s e r v a t io n  fe e  
u p o n  t h e  g r a n t in g  o f e x c lu s iv e  u s e  o f it s  p a t e n t e d  IP  a t  e a c h  o f t h e  a p p ro v e d  iM 3  b a t t e r y  p la n t s .

T h e  ro y a lt y  in c o m e  is  d e p e n d e n t  u p o n  t h e  s u c c e s s fu l d e v e lo p m e n t  o f t h re e  k e y  p ro je c t s  w h ic h  in v o lv e s  e it h e r  m in in g  a n d  
p ro c e s s in g  o f n a t u r a l fl a k e  g r a p h it e  o r  t h e  p ro d u c t io n  o f lit h iu m -io n  b a t t e r ie s . 

T h e re  is  a  r is k  t h a t  C 4 V  w ill n o t  re c e iv e  t h e  e s t im a t e d  re s e r v a t io n  fe e  o r  ro y a lt y  in c o m e  if t h e  G ro u p  is  u n s u c c e s s fu l in  
s e c u r in g  t h e  re q u ire d  c a p it a l t o  c o m m e n c e  c o n s t r u c t io n  o f t h e  in d iv id u a l p ro je c t s .

T h e re  is  a ls o  a  r is k  t h a t  t h e  a n n u a l ro y a lt y  in c o m e  d e r iv e d  fro m  t h e  in d iv id u a l p ro je c t s  w ill b e  le s s  t h a n  e s t im a t e d  d u e  t o  
d e la y s  in  p ro d u c t io n  t im e lin e s  o r  re d u c t io n  in  t h e  e x p e c t e d  a n n u a l p ro d u c t io n .

A n y  re d u c t io n  in  a n n u a l ro y a lt y  in c o m e  o r  re s e r v a t io n  fe e  in c o m e  w ill lo w e r  t h e  fa ir  v a lu e .

T h e  c o n t r a c t s  b e t w e e n  C 4 V  a n d  M a g n is  a n d  iM 3  c o n t a in  c o m m e rc ia lly  s e n s it iv e  in fo r m a t io n  a n d  a s  s u c h  c a n n o t  b e  
d is c lo s e d  in  t h e  fi n a n c ia l re p o r t  a s  it  w o u ld  lik e ly  b e  p re ju d ic ia l t o  M a g n is . T h e  c o n t r a c t e d  ro y a lt y  a n d  re s e r v a t io n  fe e s  h a v e  
b e e n  u s e d  b y  t h e  G ro u p  in  d e t e r m in in g  t h e  fa ir  v a lu e  o f C 4 V

R e c o v e r a b le  a m o u n t - C 4 V ’s  in v e s t m e n t  in  iM 3  N Y

R e a lis in g  t h e  re c o v e r a b le  a m o u n t  o f C 4 V ’s  in v e s t m e n t  in  iM 3  N Y  is  d e p e n d e n t  o n  p ro c e e d  o f s a le  e q u a llin g  t h e  e s t im a t e d  
U S $ 7 1 .3 4  m illio n . T h e re  is  a  r is k  t h a t  t h e re  m a y  b e  s ig n ifi c a n t  a d v a n c e m e n t s  in  s t a t e  o f t h e  a r t  e q u ip m e n t  a n d  t h a t  b u y e r s  
w ill b e c o m e  in c re a s in g ly  d iffi c u lt  t o  id e n t ify . T h e  v a lu a t io n  o f t h e  b a t t e r y  m a n u fa c t u r in g  e q u ip m e n t  d o e s  n o t  fa c t o r  in  t h e  
c o s t  o f re lo c a t in g  t h e  e q u ip m e n t  fro m  iM 3  N Y  t o  t h e  b u y e r (s ). In  t h e  e v e n t  t h a t  iM 3  N Y  w a s  u n s u c c e s s fu l in  a s s ig n in g  t h e s e  
c o s t s  t o  t h e  b u y e r, t h e  fa ir  v a lu e  w o u ld  b e  re d u c e d .

In t e r e s t  r a t e  r is k

T h e  m a in  in t e re s t  r a t e  r is k  a r is e s  fro m  e x p e c t e d  lo n g -t e r m  b o r ro w in g s  t o  fu n d  t h e  c o n s t r u c t io n  c o s t s . B o r ro w in g s  o b t a in e d  
a t  v a r ia b le  r a t e s  e x p o s e  in t e re s t  r a t e  r is k . B o r ro w in g s  o b t a in e d  a t  fi x e d  r a t e s  e x p o s e  t h e  c o n s o lid a t e d  e n t it y  t o  fa ir  v a lu e  
r is k . T h e re  is  a ls o  a  r is k  t h a t  t h e  g re e n fi e ld  s t a t u s  o f t h e  p ro je c t  c o u ld  a t t r a c t  in t e re s t  r a t e s  w it h  e m b e d d e d  r is k  p re m iu m s .

iM 3  T S V  h a s  m it ig a t e d  t h is  r is k  b y  a p p o in t in g  N A B  t o  a d v is e  o f t h e  m o s t  a d v a n t a g e o u s  m ix  o f a c h ie v a b le  fu n d in g  s o u rc e s  
a n d  t a rg e t  fu n d in g  p a r t n e r s  t o  re d u c e  t h e  a m o u n t  o f fu n d in g  e x p o s e d  t o  in t e re s t  r a t e  r is k . T h is  in c lu d e s  s o u rc in g  e q u it y  
p a r t n e r s  a n d  g o v e r n m e n t  g r a n t s  t o  re d u c e  t h e  q u a n t u m  o f p ro je c t  fi n a n c in g  re q u ire d .

T h e  G ro u p  is  t a rg e t in g  p o t e n t ia l fu n d in g  p a r t n e r s  fo r  t h e  N a c h u  G r a p h it e  P ro je c t  w h o  h a v e  a n  in -d e p t h  k n o w le d g e  a n d  
e x p e r ie n c e  in  T a n z a n ia  t o  re d u c e  t h e  p ro b a b ilit y  o f s ig n ifi c a n t  r is k  p re m iu m s  b e in g  a d d e d  t o  in t e re s t  r a t e s . T a rg e t in g  
fu n d in g  v ia  e n g in e e r in g , c o n s t r u c t io n  a n d  p ro c u re m e n t  c o n t r a c t o r s  w h o  h a v e  a  v e s t e d  in t e re s t  in  t h e  s u c c e s s  o f t h e  
p ro je c t  is  o n e  s t r a t e g y  t h e  G ro u p  b e lie v e s  w ill m it ig a t e  t h e  r is k  o f a t t r a c t in g  fi n a n c e  w it h  s u b s t a n t ia l r is k  p re m iu m  
e m b e d d e d  in  t h e  in t e re s t  r a t e . 

M A G N IS  E N E R G Y  T E C H N O L O G IE S   - A N N U A L  R E P O R T  2 0 2 0  

6 3

N o t e s  t o  t h e  F in a n c ia l S t a t e m e n t s

C u r r e n c y  r a t e  r is k

T h e  in d iv id u a l p ro je c t s  u n d e r t a k e  c e r t a in  t r a n s a c t io n s  d e n o m in a t e d  in  fo re ig n  c u r re n c y  a n d  is  e x p o s e d  t o  fo re ig n  c u r re n c y  
r is k  t h ro u g h  fo re ig n  e x c h a n g e  r a t e  fl u c t u a t io n s . A  s ig n ifi c a n t  p o r t io n  o f t h e  S t a g e  O n e  c o n s t r u c t io n  c o s t s  fo r  iM 3 T S V  re la t e  
t o  e q u ip m e n t  p u rc h a s e s  p a y a b le  in  U n it e d  S t a t e s  D o lla r s . 

F o re ig n  e x c h a n g e  r is k  a r is e s  fro m  fu t u re  c o m m e rc ia l t r a n s a c t io n s  a n d  re c o g n is e d  fi n a n c ia l a s s e t s  a n d  fi n a n c ia l lia b ilit ie s  
d e n o m in a t e d  in  a  c u r re n c y  t h a t  is  n o t  t h e  e n t it y ’s  fu n c t io n a l c u r re n c y . A d v e r s e  fo re ig n  c u r re n c y  fl u c t u a t io n  c a n  a d d  
s ig n ifi c a n t  a d d it io n a l c o s t s  t o  t h e  e s t im a t e d  c o n s t r u c t io n  c o s t s  o f t h e  p ro je c t .

T h e  N a c h u  p ro je c t  is  e x p o s e d  t o  c u r re n c y  fl u c t u a t io n s  b e t w e e n  t h e  U n it e d  S t a t e s  D o lla r  (U S D ) a n d  t h e  T a n z a n ia n  S c h illin g s  
(T z s ). W h e re  p o s s ib le , t h e  G ro u p  m it ig a t e s  t h is  r is k  b y  e x e c u t in g  s u p p ly  a g re e m e n t s  in  U S D , h o w e v e r  lo c a l c o n t e n t  
re q u ire m e n t s  lim it s  t h e  e x t e n t  t h a t  t h is  s t r a t e g y  c a n  b e  im p le m e n t e d . 

In  o rd e r  t o  p ro t e c t  a g a in s t  e x c h a n g e  r a t e  m o v e m e n t s , t h e  G ro u p  w ill c o n s id e r  e n t e r in g  in t o  s im p le  fo r w a rd  fo re ig n  
e x c h a n g e  c o n t r a c t s .

R is k  a d ju s t e d  d is c o u n t  r a t e

T h e  a b o v e  r is k s  h a v e  b e e n  fa c t o re d  in t o  t h e  r is k  a d ju s t e d  d is c o u n t  r a t e . A n y  fa v o u r a b le  m it ig a t io n  o f t h e  r is k s  o u t lin e d  
a b o v e  w o u ld  re s u lt  in  a  d e c re a s e  in  t h e  d is c o u n t  r a t e  a n d  a n  in c re a s e  in  t h e  fa ir  v a lu e .

S e n s it iv it y  a n a ly s is

In  a c c o rd a n c e  w it h  t h e  G ro u p  p o lic y  o f re v ie w in g  t h is  r is k , t h e  fo llo w in g  s e n s it iv it y  a n a ly s is  b a s e d  o n  a n  in c re a s e  o r  
d e c re a s e  o f t h e  r is k  a d ju s t e d  d is c o u n t  r a t e  v a r ie s  a n d  o t h e r  v a r ia b le s  re m a in  c o n s t a n t , t h e  fa ir  v a lu e  o f t h e  in v e s t m e n t  
w o u ld  h a v e  b e e n  a ff e c t e d  a s  s h o w n . 

D e s c r ip t io n

U n o b s e r v a b le  in p u t s

S e n s it iv it y

F in a n c ia l a s s e t a t F V O C I 

P ro je c t life   

 A  o n e  y e a r c h a n g e  w o u ld  in c re a s e / (d e c re a s e ) fa ir v a lu e  b y  A U $ 0 .0 3 4 M / 
(A U $ 0 .0 4 2 M )

R is k  a d ju s te d  d is c o u n t ra te  

5 % c h a n g e  w o u ld  in c re a s e / (d e c re a s e ) fa ir v a lu e  b y  A U $ 2 .1 4 7 M / (A U $ 1 .4 0 8 M )

E x p e c te d  a n n u a l v o lu m e s  

5 % c h a n g e  w o u ld  in c re a s e / (d e c re a s e ) fa ir v a lu e  b y  A U $ 0 .4 2 3 M / (A U $ 0 .4 2 3 M )

Va lu a tio n  o f b a tte r y   
m a n u fa c tu rin g  e q u ip m e n t 

5 % c h a n g e  w o u ld  in c re a s e / (d e c re a s e ) fa ir v a lu e  b y  A U $ 2 .4 5 9 M /  
(A U $ 2 .4 5 9 M )

In v e s t m e n t  a c c o u n te d  fo r u s in g  th e  e q u it y  m e th o d  – M a g n is  d ire c t in v e s tm e n t in  IM 3 N Y

In v e s t m e n t  a c c o u n t e d  fo r  u s in g  t h e  e q u it y  m e t h o d  c o m p r is e s  t h e  G ro u p ’s  in v e s t m e n t  in  a  p r iv a t e  N e w  Yo r k  lit h iu m -io n  
b a t t e r y  p ro d u c t io n  p la n t , Im p e r iu m 3  N e w  Yo r k  In c  (‘iM 3 N Y ’). T h e  in v e s t m e n t  w h ic h  is  a c c o u n t e d  fo r  u s in g  t h e  e q u it y  
m e t h o d  is  m e a s u re d  a t  c o s t  a n d  t h e  c a r r y in g  v a lu e  o f t h e  in v e s t m e n t  is  s u b s e q u e n t ly  a d ju s t e d  fo r  t h e  G ro u p ’s  in t e re s t  
in  t h e  a s s o c ia t e s  p ro fi t  o r  lo s s . T h e  in v e s t m e n t  is  n o t  q u o t e d  in  a n  a c t iv e  m a r k e t  a n d  a c c o rd in g ly  t h e  fa ir  v a lu e  o f t h is  
in v e s t m e n t  is  in c lu d e d  w it h in  L e v e l 3  o f t h e  h ie r a rc h y .

V a lu a t io n  T e c h n iq u e s - L e v e l 3

T h e  G ro u p  h a s  d e t e r m in e d  t h e  fa ir  v a lu e  o f it s  s t r a t e g ic  in v e s t m e n t  in  iM 3  N Y  b y  o b t a in in g  a  t h ird - p a r t y  v a lu a t io n  o f t h e  
re c o v e r a b le  a m o u n t  o f t h e  b a t t e r y  p la n t  e q u ip m e n t  p u rc h a s e d  in  2 0 1 8 . 

T h e  v a lu a t io n  o f t h e  b a t t e r y  p la n t  e q u ip m e n t  w a s  u n d e r t a k e n  in  A u g u s t  2 0 1 9  b y  le a d in g  e n g in e e r in g  fi r m  O ’B r ie n  &  G e re  
w h o  a s s e s s e d  o f a ll t h e  it e m s  p u rc h a s e d . In  it s  c u r re n t  s t a t u s  a n d  c o n d it io n  t h e  e x t e r n a l v a lu e r  h a s  a t t r ib u t e d  a  v a lu a t io n  o f 
A U $ 1 0 1 .4  m illio n  (U S $ 7 1 .3 4  m illio n ) o f w h ic h  M N S  h a s  a  d ire c t  in t e re s t  e q u iv a le n t  t o  A U $ 5 4 .3 5  m illio n  (U S $ 3 7 .3 7  m illio n ).

6 4  

A N N U A L  R E P O R T  2 0 2 0  - M A G N IS  E N E R G Y  T E C H N O L O G IE S

 
 
 
 
 
Q u a n t it a t iv e  in f o r m a t io n  o n  s ig n ifi c a n t  u n o b s e r v a b le  in p u t s - L e v e l 3

D e s c r ip t io n

V a lu a t io n  
t e c h n iq u e

U n o b s e r v a b le  in p u t s

I m p e r iu m 3  
 N e w  Yo r k

S e n s it iv it y

In v e s tm e n t a c c o u n te d  fo r  

F V  

Va lu a tio n  o f b a tte r y  

A U $ 1 0 2 M  

5 % c h a n g e  w o u ld  in c re a s e / (d e c re a s e )  

u s in g  th e  e q u ity  m e th o d  

m a n u fa c tu rin g  e q u ip m e n t 

(U S $ 7 1 .3 4 M ) 

fa ir v a lu e  b y  A U $ 2 .7 0 m /(A U $ 2 .7 0 )m )

1 7 . R E S E R V E S
a ) R e s e r v e s

F o re ig n  c u r re n c y  t r a n s la t io n   

S h a re  b a s e d  p a y m e n t  

F V O C I R e s e r v e  

b ) N a t u r e  a n d  p u r p o s e  o f  r e s e r v e s

i. F o r e ig n  c u r r e n c y  t r a n s la t io n  r e s e r v e

C o n s o l i d a t e d

2 0 2 0   
 $

5 ,9 8 2 ,7 9 9  

6 3 ,2 0 0  

(2 ,5 2 4 ,5 2 3 ) 

2 0 1 9   
$

5 ,1 0 6 ,2 7 7

1 ,2 9 0 ,6 4 4

-

3 ,5 2 1 ,4 7 6  

6 ,3 9 6 ,9 2 1

E x c h a n g e  d iff e re n c e s  a r is in g  o n  t r a n s la t io n  o f t h e  fo re ig n  c o n t ro lle d  e n t it y  a re  t a k e n  t o  t h e  fo re ig n  c u r re n c y  t r a n s la t io n  
re s e r v e , a s  d e s c r ib e d  in  N o t e  1 .T h e  re s e r v e  is  re c o g n is e d  in  p ro fi t  o r  lo s s  w h e n  t h e  n e t  in v e s t m e n t  is  d is p o s e d  o f.

ii. S h a r e  b a s e d  p a y m e n t  r e s e r v e

T h e  s h a re  b a s e d  p a y m e n t  re s e r v e  is  u s e d  t o  re c o g n is e  t h e  fa ir  v a lu e  o f p a id  o p t io n s  is s u e d  t o  D ire c t o r s , e m p lo y e e s , a n d  
c o n t r a c t o r s .

iii. F V O C I r e s e r v e

T h e  F V O C I R e s e r v e  is  u s e d  t o  re c o g n is e  a n y  im p a ir m e n t  o n  a s s e t s  a n d  lia b ilit ie s  u s in g  t h e  fa ir  v a lu e  o f m e a s u re m e n t , 
t h e re b y  e n s u r in g  fa ir  v a lu e s  a re  e q u iv a le n t  t o  t h e ir  re s p e c t iv e  n e t  c a r r y in g  v a lu e .

M A G N IS  E N E R G Y  T E C H N O L O G IE S   - A N N U A L  R E P O R T  2 0 2 0  

6 5

 
 
 
 
 
 
N o t e s  t o  t h e  F in a n c ia l S t a t e m e n t

1 8 .  S T A T E M E N T  O F  C A S H  F L O W S
a )  R e c o n c ilia t io n  o f  t h e  n e t  lo s s  a f t e r  in c o m e  t a x  t o  t h e  n e t  c a s h  fl o w s  f r o m  o p e r a t in g  a c t iv it ie s

O p e r a t i n g  a c t i v i t i e s

N e t  lo s s   

N o n  c a s h  a n d  n o n  o p e r a t i n g  i t e m s  

D e p re c ia t io n  o f n o n  c u r re n t  a s s e t s  

S h a re  b a s e d  p a y m e n t s  

S h a re  o f a s s o c ia t e s  n e t  lo s s  a c c o u n t e d  fo r  u s in g  t h e  e q u it y  m e t h o d  

(P ro fi t )/ L o s s  o n  s a le  o f a s s e t s  

N e t  fo re ig n  c u r re n c y  t r a n s la t io n  g a in  (lo s s ) 

A c c r u e d  in t e re s t  

C h a n g e s  i n  a s s e t s  a n d  l i a b i l i t i e s  

(In c re a s e )/d e c re a s e  in  t r a d e  a n d  o t h e r  re c e iv a b le s  

(In c re a s e )/d e c re a s e  in  p re p a y m e n t s  

(In c re a s e )/d e c re a s e  in  s e c u r it y  b o n d s  

(In c re a s e )/d e c re a s e  in  e x p lo r a t io n  a s s e t s  

(In c re a s e ) in  d e v e lo p m e n t  a s s e t s  

In c re a s e /(d e c re a s e ) in  t r a d e  a n d  o t h e r  p a y a b le s  

In c re a s e /(d e c re a s e ) in  p ro v is io n s  

N e t  c a s h  o u t fl o w  f r o m  o p e r a t i n g  a c t i v i t i e s  

a ) R e c o n c ilia t io n  o f  c a s h  a n d  c a s h  e q u iv a le n t s

C a s h  a t  b a n k  

C a s h  a t  b a n k  a n d  in  h a n d  

1 9 . C O M M I T M E N T S
a ) E x p lo r a t io n  c o m m it m e n t s

C o n s o l i d a t e d

2 0 2 0   
$

2 0 1 9   
$

(7 ,8 6 7 ,0 8 8 ) 

(5 ,5 4 9 ,5 5 3 )

4 0 ,8 6 9  

4 0 1 ,5 4 7  

- 

(5 4 ,2 5 6 ) 

1 6 5 ,4 1 6  

- 

1 ,3 3 8 ,2 2 2  

(2 2 1 ,7 1 9 ) 

- 

- 

- 

4 5 1 ,5 1 9  

5 1 8 ,6 3 5  

1 2 0 ,9 0 1

2 1 ,9 0 0

3 0 1 ,1 4 4

-

(2 3 ,0 3 0 )

(4 3 ,5 2 1 )

3 4 ,7 2 4

3 ,8 5 1

-

-

(3 ,6 3 5 )

(4 6 1 ,3 3 8 )

1 3 ,1 5 7

(5 ,2 2 6 ,8 5 5 ) 

(5 ,5 8 5 ,4 0 0 )

7 1 9 ,6 1 5  

7 1 9 ,6 1 5  

1 ,8 2 9 ,8 1 7  

1 ,8 2 9 ,8 1 7  

T h e  G ro u p  h a s  c e r t a in  c o m m it m e n t s  t o  m e e t  m in im u m  e x p e n d it u re  re q u ire m e n t s  o n  t h e  m in e r a l e x p lo r a t io n  a s s e t s  
in  w h ic h  it  h a s  a n  in t e re s t . N o t e  1  o u t lin e s  t h e  G ro u p ’s  fu t u re  fu n d in g  o p t io n s  t o  m e e t  it s  c o m m it m e n t s . O u t s t a n d in g  
e x p lo r a t io n  c o m m it m e n t s  a re  a s  fo llo w s :

N o t  la t e r  t h a n  o n e  y e a r  

C o n s o l i d a t e d

2 0 2 0   
$

9 0 ,0 1 5  

9 0 ,0 1 5  

2 0 1 9   
$

8 8 ,2 2 9

8 8 ,2 2 9

E x p lo r a t io n  e x p e n d it u re  c o m m it m e n t s  b e y o n d  t w e lv e  m o n t h s  c o u ld  n o t  b e  re lia b le  d e t e r m in e d  b e c a u s e  t h e  a n n u a l 
c o m m it m e n t  w a s  s e t  a t  t h e  a n n iv e r s a r y  d a t e  fo r  e a c h  t e n e m e n t .

6 6  

A N N U A L  R E P O R T  2 0 2 0  - M A G N IS  E N E R G Y  T E C H N O L O G IE S

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2 0 .  C O N T I N G E N T  L I A B I L I T I E S  A N D  C O N T I N G E N T  A S S E T S

T h e re  a re  n o  c o n t in g e n t  lia b ilit ie s  o r  a s s e t s  a t  3 0  J u n e  2 0 2 0 .T h e  G ro u p  h a s  g u a r a n t e e s  fo r  p ro p e r t y  le a s e s  a n d  b a n k in g  
fi n a n c e  fa c ilit ie s  o f $ 1 5 0 ,9 7 7  (2 0 1 9 : $ 1 5 0 ,9 7 7 ).

2 1 .  E V E N T S  A F T E R  R E P O R T I N G  P E R I O D

> 

 O n  2 1  A u g u s t  2 0 2 0 , t h e  C o m p a n y  t e r m in a t e d  t h e  e m p lo y m e n t  o f it s  C h ie f E x e c u t iv e  O ffi c e r, D r  F r a n k  H o u llis .

> 

> 

> 

> 

 O n  4  S e p t e m b e r  2 0 2 0 , t h e  C o m p a n y  a n n o u n c e d  t h a t  it  re c e iv e d  fi r m  c o m m it m e n t s  fro m  in s t it u t io n a l, p ro fe s s io n a l, 
a n d  s o p h is t ic a t e d  in v e s t o r s  t o  r a is e  $ 7 .6 5  m illio n  v ia  a  p la c e m e n t  o f 4 5 m  o rd in a r y  s h a re s  a t  1 7  c e n t s  p e r  s h a re . 
T h is  in c lu d e d  a n  a m o u n t  o f a p p ro x im a t e ly  $ 5 0 0 ,0 0 0  s u b s c r ib e d  b y  M r  J a m e s  D a c k , E x e c u t iv e  D ire c t o r, s u b je c t  t o  
s h a re h o ld e r  a p p ro v a l t o  b e  o b t a in e d  a t  t h e  C o m p a n y ’s  2 0 2 0  A n n u a l G e n e r a l M e e t in g . F u n d s  r a is e d  w ill b e  u s e d  fo r  
w o r k in g  c a p it a l a n d  a d v a n c in g  a ll p ro je c t s

 O n  8  S e p t e m b e r  2 0 2 0 , t h e  C o m p a n y  t e r m in a t e d  t h e  S u b s c r ip t io n  A g re e m e n t  d a t e d  2 7  S e p t e m b e r  2 0 2 0  b e t w e e n  t h e  
C o m p a n y  a n d  N e g m a  G ro u p  L im it e d , s u c h  t e r m in a t io n  b e in g  e ff e c t iv e  im m e d ia t e ly .

 O n  2 1  S e p t e m b e r  2 0 2 0 , t h e  C o m p a n y  a n n o u n c e d  t h a t  it  a p p o in t e d  M r  R o d  C h it t e n d e n  t o  t h e  ro le  o f P ro je c t  D ire c t o r, 
N a c h u  G r a p h it e  P ro je c t , a n d  M r  J a c k  R o b e r t s o n  t o  t h e  ro le  o f S t r a t e g ic  M a n a g e r, B a t t e r ie s  (P a r t -t im e ).

 T h e  im p a c t  o f t h e  C o ro n a v ir u s  (C O V ID -1 9 ) p a n d e m ic  is  o n g o in g  a n d  w h ile  it  h a s  b e e n  fi n a n c ia lly  p o s it iv e  fo r  t h e  
c o n s o lid a t e d  e n t it y  u p  t o  3 0  J u n e  2 0 2 0 , it  is  n o t  p r a c t ic a b le  t o  e s t im a t e  t h e  p o t e n t ia l im p a c t , p o s it iv e  o r  n e g a t iv e , 
a f t e r  t h e  re p o r t in g  d a t e . T h e  s it u a t io n  is  r a p id ly  d e v e lo p in g  a n d  is  d e p e n d e n t  o n  m e a s u re s  im p o s e d  b y  t h e  A u s t r a lia n  
G o v e r n m e n t  a n d  o t h e r  c o u n t r ie s , s u c h  a s  m a in t a in in g  s o c ia l d is t a n c in g  re q u ire m e n t s , t r a v e l re s t r ic t io n s  a n d  a n y  
e c o n o m ic  s t im u lu s  t h a t  m a y  b e  p ro v id e d .   

2 2 .  A U D I T O R S ’ R E M U N E R A T I O N  

T h e  a u d it o r  o f M a g n is  E n e rg y  Te c h n o lo g ie s  L im it e d  in  t h e  c u r re n t  y e a r  is  H a ll C h a d w ic k  M e lb o u r n e  A u d it .

C o n s o l i d a t e d

2 0 2 0   
$

2 0 1 9   
$

(a ) A m o u n t s  r e c e i v e d  o r  d u e  a n d  r e c e i v a b l e  b y  M a g n i s  G r o u p  A u d i t o r ’s  (A u s t r a l i a ) f o r : 

A n  a u d it  o r  re v ie w  o f t h e  fi n a n c ia l re p o r t  o f t h e  e n t it y  a n d  a n y  o t h e r  e n t it y  in  t h e  c o n s o lid a t e d  G ro u p  

1 0 6 ,3 9 2  

6 2 ,9 7 8

O t h e r  s e r v ic e s  in  re la t io n  o f t h e  e n t it y  a n d  a n y  o t h e r  e n t it y  in  t h e  c o n s o lid a t e d

G ro u p   

– T a x a t io n  s e r v ic e s  

– C o r p o r a t e  s e r v ic e s  

9 7 ,7 1 9  

- 

6 7 ,4 8 9

2 ,5 9 5

2 0 4 ,1 1 1  

1 3 3 ,0 6 2

(b ) A m o u n t s  r e c e i v e d  o r  d u e  a n d  r e c e i v a b l e  b y  r e l a t e d  p r a c t i c e s  o f  M a g n i s  G r o u p  A u d i t o r ’s  (A u s t r a l i a ) f o r :

A n  a u d it  o r  re v ie w  o f t h e  fi n a n c ia l re p o r t  o f t h e  e n t it y  a n d  a n y  o t h e r  e n t it y   

in  t h e  c o n s o lid a t e d  G ro u p  

O t h e r  s e r v ic e s  in  re la t io n  o f t h e  e n t it y  a n d  a n y  o t h e r  e n t it y   

in  t h e  c o n s o lid a t e d  G ro u p  – T a x a t io n  s e r v ic e s  

- 

- 

- 

1 3 ,2 0 1

6 ,3 0 8

1 9 ,5 0 9

M A G N IS  E N E R G Y  T E C H N O L O G IE S   - A N N U A L  R E P O R T  2 0 2 0  

6 7

 
 
 
 
 
 
N o t e s  t o  t h e  F in a n c ia l S t a t e m e n t s

2 3 . L O S S  P E R  S H A R E

(a ) R e c o n c i l i a t i o n  o f  e a r n i n g s  t o  p r o fi t  o r  l o s s :

N e t lo s s  - L o s s  u s e d  in  c a lc u la tin g  b a s ic  lo s s  p e r s h a re  

C o n s o l i d a t e d

2 0 2 0   
$

2 0 1 9   
$

7 ,3 7 8 ,6 0 1  

5 ,5 4 9 ,5 5 3

N u m b e r  o f
s h a r e s  2 0 2 0

N u m b e r  o f
s h a r e s  2 0 1 9

(b ) W e i g h t e d  a v e r a g e  n u m b e r  o f  o r d i n a r y  s h a r e s  o u t s t a n d i n g  d u r i n g  t h e  y e a r   

u s e d  i n  c a l c u l a t i n g  b a s i c  l o s s  p e r  s h a r e :

W e ig h te d  a v e ra g e  n u m b e r o f o rd in a r y  s h a re s  u s e d  in  c a lc u la tin g  b a s ic  lo s s  p e r s h a re  

6 6 5 ,0 0 6 ,2 2 1  

6 0 4 ,6 3 4 ,7 4 5

B a s ic  lo s s  p e r  s h a re  (c e n t s  p e r  s h a re ): 1 .1 1  (2 0 1 9 : 0 .9 2 )

(c ) E ff e c t  o f  d i l u t i v e  s e c u r i t i e s

F o r  t h e  y e a r  e n d e d  3 0  J u n e  2 0 2 0  a n d  fo r  t h e  c o m p a r a t iv e  p e r io d  t h e re  a re  n o  d ilu t iv e  o rd in a r y  s h a re s  b e c a u s e  c o n v e r s io n  
o f s h a re  o p t io n s  a n d  p e r fo r m a n c e  r ig h t s  w o u ld  d e c re a s e  t h e  lo s s  p e r  s h a re  a n d  h e n c e  b e  n o n -d ilu t iv e . 

D ilu t e d  lo s s  p e r  s h a re  (c e n t s  p e r  s h a re ): 1 .1 1  (2 0 1 9 : 0 .9 2 )

A C C O U N T I N G  P O L I C I E S  

B a s ic  E P S  is  c a lc u la t e d  a s  t h e  p ro fi t / [lo s s ] a t t r ib u t a b le  t o  e q u it y  h o ld e r s  o f t h e  C o m p a n y , e x c lu d in g  a n y  c o s t s  o f s e r v ic in g  
e q u it y  o t h e r  t h a n  o rd in a r y  s h a re s , d iv id e n d  b y  t h e  w e ig h t e d  a v e r a g e  n u m b e r  o f o rd in a r y  s h a re s  o u t s t a n d in g  d u r in g  t h e  
fi n a n c ia l y e a r, a d ju s t e d  fo r  a n y  b o n u s  e le m e n t s  in  o rd in a r y  s h a re s  d u r in g  t h e  y e a r.

D ilu t e d  E P S  a d ju s t s  t h e  fi g u re s  u s e d  in  t h e  d e t e r m in a t io n  o f b a s ic  E P S  t o  t a k e  in t o  a c c o u n t  t h e  a f t e r  in c o m e  t a x  e ff e c t  o f 
in t e re s t  a n d  o t h e r  fi n a n c in g  c o s t s  a s s o c ia t e d  w it h  d ilu t iv e  o rd in a r y  s h a re s  a n d  t h e  w e ig h t e d  a v e r a g e  n u m b e r  o f s h a re s  
a s s u m e d  t o  h a v e  b e e n  is s u e d  fo r  n o  c o n s id e r a t io n  in  re la t io n  t o  d ilu t iv e  p o t e n t ia l o rd in a r y  s h a re s .

2 4 . K E Y  M A N A G E M E N T  P E R S O N N E L

(a ) C o m p e n s a t i o n

T h e  a g g re g a t e  c o m p e n s a t io n  m a d e  t o  d ire c t o r s  a n d  o t h e r  m e m b e r s  o f k e y  m a n a g e m e n t  p e r s o n n e l o f t h e  c o n s o lid a t e d  
e n t it y  is  s e t  o u t  b e lo w :

S h o r t-te rm  e m p lo y e e  b e n e fi ts  

Te rm in a tio n  b e n e fi ts  

P o s t-e m p lo y m e n t b e n e fi ts  

S h a re -b a s e d  p a y m e n ts  

C o n s o l i d a t e d

2 0 2 0   
$

2 0 1 9   
$

1 ,1 7 4 ,7 9 2  

1 ,2 1 4 ,4 5 7

- 

5 9 ,9 2 7  

7 4 7  

-

1 0 9 ,9 2 6

1 1 ,4 0 0

1 ,2 3 5 ,4 6 6  

1 ,3 3 5 ,7 8 3

6 8  

A N N U A L  R E P O R T  2 0 2 0  - M A G N IS  E N E R G Y  T E C H N O L O G IE S

 
 
 
 
 
 
 
 
 
(b )  O t h e r  t r a n s a c t i o n s  a n d  b a l a n c e s  w i t h  k e y  m a n a g e m e n t  p e r s o n n e l  a n d  t h e i r  r e l a t e d  p a r t i e s

T r a n s a c t io n s  w it h  D ire c t o r s ’ re la t e d  e n t it ie s .

I d e n t i t y  o f  
r e l a t e d  p a r t y

N a t u r e  o f  r e l a t i o n s h i p

T y p e  o f  
t r a n s a c t i o n

T e r m s  &  
C o n d i t i o n s  o f  
T r a n s a c t i o n

S tro n g  S o lu tio n s  
P ty  L im ite d  

F ra n k  P o u lla s  is  a  re la te d  p a r ty  o f S tro n g   
S o lu tio n s  P ty  L im ite d  a n d  a  D ire c to r o f M a g n is   
E n e rg y  Te c h n o lo g ie s  L im ite d  

C o n s u ltin g  fe e s  
a n d  P &E  
p u rc h a s e s  

N o rm a l 
C o m m e rc ia l 
Te rm s

A g r e g a t e d  A m o u n t

2 0 2 0   
$

2 0 1 9  
$

1 8 1 ,7 7 0  

3 1 4 ,5 6 8  

P e te r Ts e g a s  

P e te r Ts e g a s  is  a  D ire c to r o f M a g n is   

C o n s u ltin g  F e e s  

N o rm a l 

3 5 ,0 1 8  

4 2 0 ,0 0 0  

E n e rg y  Te c h n o lo g ie s  L td  

D r U lric h  B e z   
H o n D Te c h  

D r U lric h  B e x  is  a  D ire c to r o f M a g n is  
E n e rg y  Te c h n o lo g ie s  L im ite d  

C o n s u ltin g  F e e s  

M  S ta n le y   
W h ittin g h a m  

M  S ta n le y  W h ittin g h a m  is  a  D ire c to r o f 

C o n s u ltin g  F e e s  

C o m m e rc ia l 
Te rm s

N o rm a l 
C o m m e rc ia l 
Te rm s

N o rm a l 
C o m m e rc ia l 
Te rm s

- 

9 ,9 0 0  

1 4 ,7 4 9  

- 

(c )   O u t s t a n d i n g  b a l a n c e s  a r i s e s  f r o m  p u r c h a s e s  o f  g o o d s  a n d  s e r v i c e s  a t  t h e  r e p o r t i n g  d a t e  i n  r e l a t i o n  t o  o t h e r  

t r a n s a c t i o n s  w i t h  k e y  m a n a g e m e n t  p e r s o n n e l.

A s s e t s  a n d  l i a b i l i t i e s  

C u r r e n t  l i a b i l i t i e s  

Tra d e  a n d  o th e r p a y a b le s  

To ta l lia b ilitie s  

2 0 2 0   
$

2 0 1 9  
 $

- 

- 

2 2 ,0 0 9

2 2 ,0 0 9

2 5 .  R E L A T E D  P A R T Y  D I S C L O S U R E S  

P A R E N T  E N T I T Y

M a g n is  E n e rg y  Te c h n o lo g ie s  L im it e d  is  t h e  u lt im a t e  A u s t r a lia n  p a re n t  e n t it y  o f t h e  c o n s o lid a t e d  e n t it y . It s  in t e re s t s  in  
c o n t ro lle d  e n t it ie s  a re  s e t  o u t  in  N o t e  2 7 .

W H O L LY  O W N E D  G R O U P  T R A N S A C T I O N S

C o n t ro lle d  e n t it ie s  m a d e  p a y m e n t s  a n d  re c e iv e d  fu n d s  o n  b e h a lf o f M a g n is  E n e r g y  Te c h n o lo g ie s  L im it e d  a n d  o t h e r  
c o n t ro lle d  e n t it ie s  b y  w a y  o f in t e r -c o m p a n y  lo a n  a c c o u n t s  w it h  e a c h  c o n t ro lle d  e n t it y . T h e s e  lo a n s  a re  u n s e c u re d , b e a r  n o  
in t e re s t  a n d  a re  re p a y a b le  o n  d e m a n d . H o w e v e r, d e m a n d  fo r  re p a y m e n t  is  n o t  e x p e c t e d  in  t h e  n e x t  t w e lv e  m o n t h s .

T r a n s a c t io n s  a n d  b a la n c e s  b e t w e e n  t h e  C o m p a n y  a n d  it s  c o n t ro lle d  e n t it ie s  w e re  e lim in a t e d  in  t h e  p re p a r a t io n  a n d  
c o n s o lid a t io n  o f t h e  fi n a n c ia l s t a t e m e n t s  o f t h e  g ro u p .

M A G N IS  E N E R G Y  T E C H N O L O G IE S   - A N N U A L  R E P O R T  2 0 2 0  

6 9

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
N o t e s  t o  t h e  F in a n c ia l S t a t e m e n t s

K E Y  M A N A G E M E N T  P E R S O N N E L

D e t a ils  re la t in g  t o  k e y  m a n a g e m e n t  p e r s o n n e l, in c lu d in g  re m u n e r a t io n  p a id , a re  in c lu d e d  in  N o t e  2 4  a n d  t h e  
R e m u n e r a t io n  R e p o r t  in  t h e  D ire c t o r s  R e p o r t .

T R A N S A C T I O N S  W I T H  R E L A T E D  P A R T I E S

A ll a m o u n t s  p a y a b le  t o  re la t e d  p a r t ie s  a re  u n s e c u re d  a n d  a t  n o  in t e re s t  c o s t .

T h e  a m o u n t  o u t s t a n d in g  w ill b e  s e t t le d  in  c a s h . N o  g u a r a n t e e s  h a v e  b e e n  g iv e n  o r  re c e iv e d . N o  e x p e n s e  h a s  b e e n  
re c o g n is e d  in  t h e  p e r io d  fo r  b a d  o r  d o u b t fu l d e b t s  in  re s p e c t  o f t h e  a m o u n t s  o w e d  b y  re la t e d  p a r t ie s .

E N T I T Y  W I T H  S I G N I F I C A N T  I N F L U E N C E  O V E R  T H E  G R O U P

M A Z Z D E L  P T Y  LT D  c o n t ro ls  8 .5 3 %  o f t h e  o rd in a r y  s h a re s  (fu lly  d ilu t e d ) in  M a g n is  E n e r g y  Te c h n o lo g ie s  L im it e d

(2 0 1 9 : 8 .3 5 % ).

A L  C A P ITA L  H O L D IN G  P T Y  LT D  c o n t ro ls  5 .5 8 %  o f t h e  o rd in a r y  s h a re s  (fu lly  d ilu t e d ) in  M a g n is  E n e r g y  Te c h n o lo g ie s  L im it e d  
(2 0 1 9 : 5 .7 6 % ).

2 6 .  P A R E N T  E N T I T Y  I N F O R M A T I O N

S e t  o u t  b e lo w  is  t h e  s u p p le m e n t a r y  in fo r m a t io n  a b o u t  t h e  p a re n t  e n t it y .

S t a t e m e n t  o f  p r o fi t  o r  l o s s  a n d  o t h e r  c o m p r e h e n s i v e  i n c o m e

P ro fi t  a f t e r  in c o m e  t a x  

To t a l c o m p re h e n s iv e  in c o m e  

S t a t e m e n t  o f  fi n a n c i a l  p o s i t i o n

To t a l c u r re n t  a s s e t s  

To t a l a s s e t s  

To t a l c u r re n t  lia b ilit ie s  

To t a l lia b ilit ie s  

E q u it y  

Is s u e d  c a p it a l 

E q u it y  s e t t le d  e m p lo y e e  b e n e fi t s  re s e r v e  

R e t a in e d  p ro fi t s  

To t a l e q u it y  

C o n t in g e n t  lia b ilit ie s

P a r e n t

2 0 2 0   
$

2 0 1 9   
$

(6 ,9 7 2 ,8 7 3 ) 

(6 ,0 1 8 ,1 4 6 )

(6 ,9 7 2 ,8 7 3 ) 

(6 ,0 1 8 ,1 4 6 )

1 ,0 4 7 ,0 2 4   

3 ,8 4 3 ,2 9 2

1 4 ,7 8 9 ,8 5 6  

1 9 ,1 7 1 ,4 0 7

7 0 7 ,5 2 1  

1 ,1 4 2 ,7 8 2  

4 3 6 ,1 5 0

4 7 6 ,9 7 1

1 2 8 ,6 2 5 ,9 0 5  

1 2 4 ,1 7 7 ,4 1 8

6 3 ,2 0 0   

1 ,2 9 0 ,6 4 5

(1 1 2 ,5 1 7 ,5 0 8 ) 

(1 0 6 ,7 7 3 ,6 2 7 )

1 6 ,1 7 1 ,5 9 7  

1 8 ,6 9 4 ,4 3 6

T h e  p a re n t  e n t it y  h a d  n o  c o n t in g e n t  lia b ilit ie s  a s  a t  3 0  J u n e  2 0 2 0  a n d  3 0  J u n e  2 0 1 9 .

C a p it a l c o m m it m e n t s  - P la n t  a n d  e q u ip m e n t

T h e  p a re n t  e n t it y  h a d  n o  c a p it a l c o m m it m e n t s  fo r  p la n t  a n d  e q u ip m e n t  a t  a s  3 0  J u n e  2 0 2 0  a n d  3 0  J u n e  2 0 1 9 .

R e m u n e r a t io n  c o m m it m e n t s

T h e  p a re n t  e n t it y  h a s  a  re m u n e r a t io n  c o m m it m e n t  o f $ 8 9 ,2 4 7  a s  a t  3 0  J u n e  2 0 2 0  (2 0 1 9 : $ 5 4 9 ,8 9 6 ).

7 0  

A N N U A L  R E P O R T  2 0 2 0  - M A G N IS  E N E R G Y  T E C H N O L O G IE S

 
 
 
 
 
 
 
 
 
 
 
 
 
2 7 . I N T E R E S T S  I N  C O N T R O L L E D  E N T I T I E S

T h e  c o n s o lid a t e d  fi n a n c ia l s t a t e m e n t s  in c o r p o r a t e  t h e  a s s e t s , lia b ilit ie s , a n d  re s u lt s  o f t h e  fo llo w in g  s u b s id ia r ie s  in  
a c c o rd a n c e  w it h  t h e  a c c o u n t in g  p o lic y  d e s c r ib e d  in  N o t e  1 :

N a m e

C o u n t r y  o f  i n c o r p o r a t i o n

C l a s s  o f  s h a r e s

U ra n e x  Ta n z a n ia  L im ite d  

M a g n is  Te c h n o lo g ie s  [Ta n z a n ia ] L im ite d   

Ta n z a n ia  

Ta n z a n ia  

U ra n e x  M o z a m b iq u e  L im ita d a  

M o z a m b iq u e  

U ra n e x  E S IP  P ty  L td  

A u s tra lia  

Fa ru  R e s o u rc e s  L im ite d  

J u h u d i M in e ra ls  L im ite d  

Im p e riu m 3  N e w  Yo rk  In c . 1 ,2 

O rd in a r y  

Ta n z a n ia  

Ta n z a n ia  

U S A  

O rd in a r y  

O rd in a r y  

O rd in a r y  

1 0 0  

O rd in a r y  

O rd in a r y  

O rd in a r y  

E q u i t y  H o l d i n g s  1

2 0 2 0   
%

2 0 1 9   
%

1 0 0  

1 0 0  

1 0 0  

1 0 0

1 0 0  

1 0 0  

6 2  

1 0 0

1 0 0

1 0 0

1 0 0

1 0 0

3 1

1  p e rc e n ta g e  o f v o tin g  p o w e r is  in  p ro p o r tio n  to  o w n e rs h ip .
2  Im p e riu m 3  N e w  Yo rk  In c . w a s  in c o rp o ra te d  fo r c o n s o lid a tio n  p u rp o s e s  o n  2 9  J u n e  2 0 2 0 . T h e  re m a in in g  3 8 %  h a s  b e e n  a ttrib u te d  to  n o n -
c o n tro llin g  in te re s ts .

A C C O U N T I N G  P O L I C I E S  

P r in c ip le s  o f  c o n s o lid a t io n

T h e  c o n s o lid a t io n  fi n a n c ia l s t a t e m e n t s  a re  t h o s e  o f t h e  c o n s o lid a t e d  e n t it y , c o m p r is in g  M a g n is  E n e r g y  Te c h n o lo g ie s  
L im it e d  [t h e  p a re n t  e n t it y ], s p e c ia l p u r p o s e  e n t it ie s  a n d  a ll e n t it ie s  w h ic h  M a g n is  E n e r g y  Te c h n o lo g ie s  L im it e d  c o n t ro lle d  
fro m  t im e  t o  t im e  d u r in g  t h e  y e a r  a n d  a t  re p o r t in g  d a t e . C o n t ro l is  a c h ie v e d  w h e n  t h e  G ro u p  is  e x p o s e d , o r  h a s  r ig h t s , t o  
v a r ia b le  re t u r n s  fro m  it s  in v o lv e m e n t  w it h  t h e  in v e s t e e  a n d  h a s  t h e  a b ilit y  t o  a ff e c t  t h o s e  re t u r n s  t h ro u g h  t ie s  p o w e r  o v e r  
t h e  in v e s t e e .

S p e c ifi c a lly , t h e  G ro u p  c o n t ro ls  a n d  in v e s t e e  if a n d  o n ly  if t h e  G ro u p  h a s :

> 

> 

> 

 P o w e r  o v e r  t h e  in v e s t e e  [i.e . e x is t in g  r ig h t s  t h a t  g iv e  it  t h e  c u r re n t  a b ilit y  t o  d ire c t  t h e  re le v a n t  a c t iv it ie s  o f t h e  in v e s t e e ]

 E x p o s u re , o r  r ig h t s , t o  v a r ia b le  re t u r n s  fro m  it s  in v o lv e m e n t  w it h  t h e  in v e s t e e , a n d

 T h e  a b ilit y  t o  u s e  it s  p o w e r  o v e r  t h e  in v e s t e e  t o  a ff e c t  it s  re t u r n s

W h e n  t h e  G ro u p  h a s  le s s  t h a n  a  m a jo r it y  o f t h e  v o t in g  o r  s im ila r  r ig h t s  o f a n  in v e s t e e , t h e  G ro u p  c o n s id e r s  a ll re le v a n t  fa c t s  
a n d  c irc u m s t a n c e s  in  a s s e s s in g  w h e t h e r  it  h a s  p o w e r  o v e r  a n  in v e s t e e , in c lu d in g :

> 

> 

> 

 T h e  c o n t r a c t u a l a r r a n g e m e n t  w it h  t h e  o t h e r  v o t e  h o ld e r s  o f t h e  in v e s t e e

 R ig h t s  a r is in g  fro m  o t h e r  c o n t r a c t u a l a r r a n g e m e n t s

 T h e  G ro u p ’s  v o t in g  r ig h t s  a n d  p o t e n t ia l v o t in g  r ig h t s

T h e  G ro u p  re -a s s e s s  w h e t h e r  o r  n o t  it  c o n t ro ls  a n  in v e s t e e  if fa c t s  a n d  c irc u m s t a n c e s  in d ic a t e  t h a t  t h e re  a re  c h a n g e s  t o  
o n e  o r  m o re  o f t h e  t h re e  e le m e n t s  o f c o n t ro l. C o n s o lid a t io n  o f a  s u b s id ia r y  b e g in s  w h e n  t h e  G ro u p  o b t a in s  c o n t ro l o v e r  
t h e  s u b s id ia r y  a n d  c e a s e s  w h e n  t h e  G ro u p  lo s s e s  c o n t ro l o f t h e  s u b s id ia r y . A s s e t s , lia b ilit ie s , in c o m e , a n d  e x p e n s e s  o f a  
s u b s id ia r y  a c q u ire d  o r  d is p o s e d  o f d u r in g  t h e  y e a r  a re  in c lu d e d  in  t h e  s t a t e m e n t  o f c o m p re h e n s iv e  in c o m e  fro m  t h e  d a t e  
t h e  G ro u p  g a in s  c o n t ro l u n t il t h e  d a t e  t h e  G ro u p  c e a s e s  t o  c o n t ro l t h e  s u b s id ia r y .

M A G N IS  E N E R G Y  T E C H N O L O G IE S   - A N N U A L  R E P O R T  2 0 2 0  

7 1

N o t e s  t o  t h e  F in a n c ia l S t a t e m e n t s

P ro fi t  o r  lo s s  a n d  e a c h  c o m p o n e n t  o f o t h e r  c o m p re h e n s iv e  in c o m e  [O C I] a re  a t t r ib u t e d  t o  t h e  e q u it y  h o ld e r s  o f t h e  p a re n t  
o f t h e  G ro u p  a n d  t o  t h e  n o n -c o n t ro llin g  in t e re s t s , e v e n  if t h is  re s u lt s  in  t h e  n o n -c o n t ro llin g  in t e re s t s  h a v in g  a  d e fi c it  
b a la n c e . W h e n  n e c e s s a r y , a d ju s t m e n t s  a re  m a d e  t o  t h e  fi n a n c ia l s t a t e m e n t s  o f s u b s id ia r ie s  t o  b r in g  t h e ir  a c c o u n t in g  
p o lic ie s  in t o  lin e  w it h  t h e  G ro u p ’s  a c c o u n t in g  p o lic ie s . A ll in t r a -g ro u p  a s s e t s  a n d  lia b ilit ie s , e q u it y , in c o m e , e x p e n s e s , a n d  
c a s h  fl o w s  re la t in g  t o  t r a n s a c t io n s  b e t w e e n  m e m b e r s  o f t h e  G ro u p  a re  e lim in a t e d  in  fu ll o n  c o n s o lid a t io n .

A  c h a n g e  in  t h e  o w n e r s h ip  in t e re s t  o f a  s u b s id ia r y , w it h o u t  a  lo s s  o f c o n t ro l, is  a c c o u n t e d  fo r  a s  a n  e q u it y  t r a n s a c t io n . If t h e  
G ro u p  lo s e s  c o n t ro l o v e r  a  s u b s id ia r y , it :

> 

> 

> 

> 

> 

> 

> 

 D e -re c o g n is e s  t h e  a s s e t s  [in c lu d in g  g o o d w ill] a n d  lia b ilit ie s  o f t h e  s u b s id ia r y

 D e -re c o g n is e s  t h e  c a r r y in g  a m o u n t  o f a n y  n o n -c o n t ro llin g  in t e re s t s

 D e -re c o g n is e s  t h e  c u m u la t iv e  t r a n s la t io n  d iff e re n c e s  re c o rd e d  in  e q u it y

  R e c o g n is e s  t h e  fa ir  v a lu e  o f t h e  c o n s id e r a t io n  re c e iv e d

  R e c o g n is e s  t h e  fa ir  v a lu e  o f a n y  in v e s t m e n t  re t a in e d

 R e c o g n is e s  a n y  s u r p lu s  o r  d e fi c it  in  p ro fi t  o r  lo s s

 R e c la s s ifi e s  t h e  p a re n t ’s  s h a re  o f c o m p o n e n t s  p re v io u s ly  re c o g n is e d  in  O C I t o  p ro fi t  o r  lo s s  o r  re t a in e d  e a r n in g s , a s  
a p p ro p r ia t e , a s  w o u ld  b e  re q u ire d  if t h e  G ro u p  h a d  d ire c t ly  d is p o s e d  o f t h e  re la t e d  a s s e t s  o r  lia b ilit ie s

S u b s id ia r ie s  a re  re c o rd e d  a s  a  c o m p o n e n t  o f o t h e r  re v e n u e s  in  t h e  s e p a r a t e  in c o m e  s t a t e m e n t  o f t h e  p a re n t  e n t it y , a n d  
d o  n o t  im p a c t  t h e  re c o rd e d  c o s t  o f t h e  in v e s t m e n t . U p o n  re c e ip t  o f d iv id e n d  p a y m e n t s  fro m  s u b s id ia r ie s , t h e  p a re n t  w ill 
a s s e s s  w h e t h e r  a n y  in d ic a t o r s  o r  im p a ir m e n t  o f t h e  c a r r y in g  v a lu e  o f t h e  in v e s t m e n t  in  t h e  s u b s id ia r y  e x is t . 

W h e re  s u c h  in d ic a t o r s  e x is t , t o  t h e  e x t e n t  t h a t  t h e  c a r r y in g  v a lu e  o f t h e  in v e s t m e n t  e x c e e d s  it s  re c o v e r a b le  a m o u n t , a n  
im p a ir m e n t  lo s s  is  re c o g n is e d .

2 8 .  S H A R E -B A S E D  P A Y M E N T  P L A N S

a ) R e c o g n is e d  s h a r e -b a s e d  p a y m e n t  e x p e n s e s

T h e  e x p e n s e  re c o g n is e d  fo r  e m p lo y e e s  a n d  c o n t r a c t o r s  re c e iv e d  d u r in g  t h e  y e a r  is  s h o w n  b e lo w :

E x p e n s e  a ris in g  fro m  th e  is s u e  o f o p tio n s  (e m p lo y e e s ) 

E x p e n s e  a ris in g  fro m  th e  is s u e  o f o p tio n s  (n o n -e m p lo y e e s ) 

To ta l e x p e n s e  a ris in g  fro m  s h a re -b a s e d  p a y m e n t tra n s a c tio n s  

T h e  s h a re -b a s e d  p a y m e n t  p la n s  a re  d e s c r ib e d  b e lo w .

b )  T y p e s  o f  s h a r e -b a s e d  p a y m e n t  p la n s  f o r  e m p lo y e e

E m p l o y e e  s h a r e  o p t i o n  p l a n  (E S O P )

C o n s o l i d a t e d

2 0 2 0   
$

7 4 8  

8 0 0  

1 ,5 4 8  

2 0 1 9   
$

1 1 ,4 0 0

1 0 ,5 0 0

2 1 ,9 0 0

S h a re  o p t io n s  a re  g r a n t e d  t o  D ire c t o r s , o t h e r  K e y  M a n a g e m e n t  P e r s o n n e l (K M P ) a n d  o t h e r  e m p lo y e e s . T h e  E S O P  is  
d e s ig n e d  t o  a lig n  p a r t ic ip a n t s ’ in t e re s t s  w it h  t h o s e  o f s h a re h o ld e r s  b y  in c re a s in g  t h e  v a lu e  o f t h e  C o m p a n y ’s  s h a re s . U n d e r  
t h e  E S O P, t h e  e x e rc is e  p r ic e  o f t h e  o p t io n s  is  s e t  b y  t h e  B o a rd  o n  t h e  d a t e  o f g r a n t . 

T h e  life  o f o p t io n s  t o  K M P  a n d  o t h e r  e m p lo y e e s  g r a n t e d  a re  fo r  3  y e a r s , b u t  t h e s e  m u s t  b e  e x e rc is e d  w it h in  3  m o n t h s  o f t h e  
o p t io n  h o ld e r  c e a s in g  e m p lo y m e n t  w it h  M a g n is  E n e r g y  Te c h n o lo g ie s  L im it e d . T h e re  a re  n o  c a s h  s e t t le m e n t  a lt e r n a t iv e s .

7 2  

A N N U A L  R E P O R T  2 0 2 0  - M A G N IS  E N E R G Y  T E C H N O L O G IE S

 
 
 
c )  S h a r e -b a s e d  p a y m e n t  p la n s  f o r  n o n -e m p lo y e e  (C o n s u lt a n t  o p t io n s )

S h a re  o p t io n s  a re  g r a n t e d  t o  s e le c t e d  n o n -e m p lo y e e s  fro m  t im e  t o  t im e  in  c o n s id e r a t io n  fo r  t h e  s e r v ic e s  o f t h e  c o n s u lt a n t  
a s  a  s h a re -b a s e d  in c e n t iv e  (C o n s u lt a n t  o p t io n s ). P r io r  S h a re h o ld e r  a p p ro v a l o f t h e  is s u e  o f C o n s u lt a n t  o p t io n s  is  re q u ire d . 

E a c h  C o n s u lt a n t  O p t io n  is  g r a n t e d  fo r  n il c o n s id e r a t io n  fo r  s e r v ic e s  p ro v id e d  b y  u n re la t e d  p a r t ie s  t o  t h e  C o m p a n y , t h e  
t e r m s  a re  s u b je c t  t o  t h e  s a m e  t e r m s  o f t h e  C o m p a n y ’s  e x is t in g  u n lis t e d  o p t io n s . N o  fu n d s  a re  r a is e d  fro m  t h e  is s u e  o f t h e  
C o n s u lt a n t  O p t io n s , a s  t h e y  a re  is s u e d  t o  t h e  c o n s u lt a n t  in  c o n s id e r a t io n  fo r  a s s is t a n c e  w it h  t h e  C o m p a n y ’s  p ro g re s s  a n d  
s u c c e s s . T h e re  a re  n o  c a s h  s e t t le m e n t  a lt e r n a t iv e s .

d )  S u m m a r ie s  o f  o p t io n s  a n d  r ig h t s  g r a n t e d  u n d e r  s h a r e -b a s e d  p a y m e n t

T h e  fo llo w in g  t a b le  illu s t r a t e s  t h e  n u m b e r  (N o .) a n d  w e ig h t e d  a v e r a g e  e x e rc is e  p r ic e s  (W A E P ) o f, a n d  m o v e m e n t s  in , s h a re  
o p t io n s  is s u e d  d u r in g  t h e  y e a r.

O u ts ta n d in g  a t th e  b e g in n in g  o f th e  y e a r 

G ra n te d  d u rin g  th e  y e a r 

E x e rc is e d  d u rin g  th e  y e a r 

E x p ire d  d u rin g  th e  y e a r 

O u ts ta n d in g  a t th e  e n d  o f th e  y e a r 

E x e rc is a b le  a t th e  e n d  o f th e  y e a r 

2 0 2 0  
N o .

1 5 ,8 0 0 ,0 0 0  

1 2 ,1 0 0 ,0 0 0  

- 

(1 7 ,9 0 0 ,0 0 0 ) 

1 0 ,0 0 0 ,0 0 0  

1 0 ,0 0 0 ,0 0 0  

2 0 2 0
W A E P

0 .7 1  

0 .6 9  

- 

-  

0 .5 8  

0 .5 8  

2 0 1 9
N o .

2 0 1 9
W A E P

1 7 ,5 5 0 ,0 0 0  

6 ,0 0 0 ,0 0 0  

(7 5 0 ,0 0 0 ) 

(7 ,0 0 0 ,0 0 0 ) 

1 5 ,8 0 0 ,0 0 0  

1 5 ,8 0 0 ,0 0 0  

0 .6 8

0 .7 0

0 .4 0

0 .7 1

0 .7 1

T h e  r a n g e  o f e x e rc is e  p r ic e s  fo r  r ig h t s  a n d  o p t io n s  o u t s t a n d in g  a t  t h e  e n d  o f t h e  y e a r  w a s  b e t w e e n  $ 0 .4 0  a n d  $ 0 .7 0  (2 0 1 9 : 
$ 0 .7 0  a n d  $ 1 .0 0 ).

e ) W e ig h t e d  a v e r a g e  r e m a in in g  e s t im a t e d  lif e

T h e  w e ig h t e d  a v e r a g e  re m a in in g  e s t im a t e d  life  fo r  t h e  s h a re  o p t io n s  o u t s t a n d in g  a s  a t  3 0  J u n e  2 0 2 0  is  1 .5  y e a r s  (2 0 1 9 : 0 .8 3  
y e a r s ).

f ) W e ig h t e d  a v e r a g e  f a ir  v a lu e

T h e  w e ig h t e d  a v e r a g e  fa ir  v a lu e  o f o p t io n s  g r a n t e d  d u r in g  t h e  y e a r  w a s  $ 0 .0 0 2 2  (2 0 1 9 : $ 0 .0 0 3 6 5 ).

g ) O p t io n  p r ic in g  m o d e l

E q u i t y -s e t t l e d  t r a n s a c t i o n s

T h e  fa ir  v a lu e  o f t h e  e q u it y -s e t t le d  s h a re  o p t io n s  g r a n t e d  u n d e r  t h e  s h a re  b a s e d  p a y m e n t  is  e s t im a t e d  a s  a t  t h e  d a t e  o f 
g r a n t  u s in g  a  B in o m ia l M o d e l t a k in g  in t o  a c c o u n t  t h e  t e r m s  a n d  c o n d it io n s  u p o n  w h ic h  t h e  o p t io n s  w e re  g r a n t e d .

T h e  fo llo w in g  t a b le  lis t s  t h e  in p u t s  t o  t h e  m o d e ls  u s e d  fo r  t h e  y e a r  e n d e d  3 0  J u n e  2 0 2 0 :

D iv id e n d  y ie ld  (%) 

E x p e c te d  v o la tility  (%) 

R is k-fre e  in te re s t ra te  (%) 

E x p e c te d  life  o f o p tio n  (y e a rs ) 

O p tio n  e x e rc is e  p ric e  (c e n ts ) 

W e ig h te d  a v e ra g e  s h a re  p ric e  a t m e a s u re m e n t d a te s  (c e n ts ) 

E x e rc is e  p ric e  m u ltip le  

M o d e l u s e d  

2 0 2 0

N il

3 6

1 .8 7  – 1 .9 8

1 .5  – 3 .0 0  

7 0  

2 9 .5

2

B in o m ia l

M A G N IS  E N E R G Y  T E C H N O L O G IE S   - A N N U A L  R E P O R T  2 0 2 0  

7 3

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
N o t e s  t o  t h e  F in a n c ia l S t a t e m e n t s

T h e  e ff e c t s  o f e a r ly  e x e rc is e  h a v e  b e e n  in c o r p o r a t e d  in t o  c a lc u la t io n s  b y  u s in g  a n  e x p e c t e d  life  fo r  t h e  o p t io n  t h a t  is  
s h o r t e r  t h a n  t h e  e s t im a t e d  life  b a s e d  o n  h is t o r ic a l e x e rc is e  b e h a v io u r, w h ic h  is  n o t  n e c e s s a r ily  in d ic a t iv e  o f e x e rc is e  
p a t t e r n s  t h a t  m a y  o c c u r  in  t h e  fu t u re . T h e  e x p e c t e d  v o la t ilit y  w a s  d e t e r m in e d  u s in g  a  h is t o r ic a l s a m p le  o f C o m p a n y  s h a re -
p r ic e s . T h e  re s u lt in g  e x p e c t e d  v o la t ilit y  t h e re fo re  re fl e c t s  t h e  a s s u m p t io n  t h a t  t h e  h is t o r ic a l v o la t ilit y  is  in d ic a t iv e  o f fu t u re  
t re n d s  w h ic h  m a y  a ls o  n o t  n e c e s s a r ily  b e  t h e  a c t u a l o u t c o m e . T h e  o p t io n  h o ld e r s  w e re  a s s u m e d  t o  e x e rc is e  p r io r  t o  e x p ir y  
d a t e  w h e n  t h e  p r ic e  is  t w ic e  t h a t  o f t h e  e x e rc is e  p r ic e . T h is  re fl e c t s  t h e  re s t r ic t io n s  t o  t r a d in g  o f d ire c t o r s  a n d  e m p lo y e e s  
o u t lin e d  in  t h e  C o m p a n y ’s  s h a re  t r a d in g  p o lic y .

D u r in g  t h e  fi n a n c ia l y e a r, t h e  M a g n is  O p t io n  S h a re  T r u s t  (M O S T ) s c h e m e  a c q u ire d  a n d  w a s  is s u e d  w it h  8 ,1 0 0 ,0 0 0  (2 0 1 9 : 
1 ,0 0 0 ,0 0 0 ) o p t io n s  o n  v a r y in g  t e r m s  a n d  c o n d it io n s  fo r  a llo t m e n t  t o  D ire c t o r s  a n d  e m p lo y e e s .

A C C O U N T I N G  P O L I C I E S  

T h e  G ro u p  p ro v id e s  b e n e fi t s  t o  e m p lo y e e s  [in c lu d in g  d ire c t o r s ] o f, a n d  c o n s u lt a n t s  t o , t h e  G ro u p  in  t h e  fo r m  o f s h a re -
b a s e d  p a y m e n t  t r a n s a c t io n s , w h e re b y  s e r v ic e s  a re  re n d e re d  in  e x c h a n g e  fo r  s h a re s  o r  r ig h t s  o v e r  s h a re s  [‘e q u it y -s e t t le d  
t r a n s a c t io n s ’].

T h e  c o s t  o f e q u it y -s e t t le d  t r a n s a c t io n s  is  m e a s u re d  b y  re fe re n c e  t o  t h e  fa ir  v a lu e  a t  t h e  d a t e  a t  w h ic h  t h e y  a re  g r a n t e d . T h e  
fa ir  v a lu e  o f o p t io n s  a n d  p e r fo r m a n c e  r ig h t s  w it h  m a r k e t  b a s e d  p e r fo r m a n c e  c r it e r ia  is  d e t e r m in e d  b y  a n  e x t e r n a l v a lu e r  
u s in g  a  b in o m ia l o p t io n  p r ic in g  m o d e l. T h e  fa ir  v a lu e  o f p e r fo r m a n c e  p la n  r ig h t s  w it h  n o n -m a r k e t  p e r fo r m a n c e  c r it e r ia  is  
d e t e r m in e d  b y  re fe re n c e  t o  t h e  C o m p a n y ’s  s h a re  p r ic e  a t  d a t e  o f g r a n t .

T h e  c o s t  o f e q u it y -s e t t le d  t r a n s a c t io n s  is  re c o g n is e d , t o g e t h e r  w it h  a  c o r re s p o n d in g  in c re a s e  in  e q u it y , o v e r  t h e  p e r io d  
in  w h ic h  t h e  p e r fo r m a n c e  c o n d it io n s  a re  fu lfi lle d , e n d in g  in  t h e  d a t e  o n  w h ic h  t h e  re c ip ie n t  b e c o m e s  fu lly  e n t it le d  t o  t h e  
a w a rd  [‘v e s t in g  d a t e ’].

T h e  c u m u la t iv e  e x p e n s e  re c o g n is e d  fo r  e q u it y -s e t t le d  t r a n s a c t io n s  a t  e a c h  re p o r t in g  d a t e  u n t il v e s t in g  d a t e  re fl e c t s :

[i] t h e  e x t e n t  t o  w h ic h  t h e  v e s t in g  p e r io d  h a s  e x p ire d  a n d  

[ii]  t h e  n u m b e r  o f a w a rd s  t h a t , in  t h e  o p in io n  o f t h e  d ire c t o r s , b a s e d  o n  t h e  b e s t  a v a ila b le  in fo r m a t io n  a t  re p o r t in g  d a t e  

w ill u lt im a t e ly  v e s t . 

N o  a d ju s t m e n t  is  m a d e  fo r  t h e  lik e lih o o d  o f m a r k e t  c o n d it io n s  b e in g  m e t  a s  t h e  e ff e c t  o f t h e s e  c o n d it io n s  is  in c lu d e d  
in  d e t e r m in a t io n  o f fa ir  v a lu e  a t  g r a n t  d a t e . T h e  c h a r g e  o r  c re d it  fo r  t h e  p e r io d  re p re s e n t s  t h e  m o v e m e n t  in  c u m u la t iv e  
e x p e n s e  re c o g n is e d  a s  a t  t h e  b e g in n in g  a n d  e n d  o f t h e  p e r io d . W h e re  a w a rd s  v e s t  im m e d ia t e ly , t h e  e x p e n s e  is  a ls o  
re c o g n is e d  in  p ro fi t  o r  lo s s .

N o  e x p e n s e  is  re c o g n is e d  fo r  a w a rd s  t h a t  d o  n o t  u lt im a t e ly  v e s t , e x c e p t  fo r  a w a rd s  w h e re  v e s t in g  is  c o n d it io n a l u p o n  a  
m a r k e t  c o n d it io n .

W h e re  t h e  t e r m s  o f a n  e q u it y -s e t t le d  a w a rd  a re  m o d ifi e d , a s  a  m in im u m , a n  e x p e n s e  is  re c o g n is e d  a s  if t h e  t e r m s  h a d  
n o t  b e e n  m o d ifi e d . In  a d d it io n , a n  e x p e n s e  is  re c o g n is e d  fo r  a n y  in c re a s e  in  t h e  v a lu e  o f t h e  t r a n s a c t io n  a s  a  re s u lt  o f t h e  
m o d ifi c a t io n , a s  m e a s u re d  a t  t h e  d a t e  o f m o d ifi c a t io n .

W h e re  t h e  t e r m s  o f a n  e q u it y -s e t t le d  a w a rd  is  c a n c e lle d , it  is  t re a t e d  a s  if it  h a d  v e s t e d  o n  t h e  d a t e  o f c a n c e lla t io n  a n d  
a n y  e x p e n s e  n o t  y e t  re c o g n is e d  fo r  t h e  a w a rd  is  re c o g n is e d  im m e d ia t e ly . H o w e v e r, if a  n e w  a w a rd  is  s u b s t it u t e d  fo r  t h e  
c a n c e lle d  a w a rd  a n d  d e s ig n a t e d  a s  a  re p la c e m e n t  a w a rd  o n  t h e  d a t e  t h a t  it  is  g r a n t e d , t h e  c a n c e lle d  a n d  t h e  n e w  a w a rd  
a re  t re a t e d  a s  if t h e y  w e re  a  m o d ifi c a t io n  o f t h e  o r ig in a l a w a rd  a s  d e s c r ib e d  in  t h e  p re v io u s  p a r a g r a p h .

T h e  d ilu t iv e  e ff e c t , if a n y , o f o u t s t a n d in g  o p t io n s  is  re fl e c t e d  a s  a d d it io n a l s h a re  d ilu t io n  in  t h e  c o m p u t a t io n  o f e a r n in g s  p e r  
s h a re .

2 9 .  F I N A N C I A L  I N S T R U M E N T S

(a )  F in a n c ia l r is k  m a n a g e m e n t  o b j e c t iv e s  a n d  p o lic ie s

T h e  G ro u p ’s  p r in c ip a l fi n a n c ia l in s t r u m e n t s  c o n s is t  o f s h o r t  t e r m  d e p o s it s , re c e iv a b le s , a n d  p a y a b le s . T h e s e  a c t iv it ie s  
e x p o s e  t h e  G ro u p  t o  a  v a r ie t y  o f fi n a n c ia l r is k s : m a r k e t  r is k , i.e . (in t e re s t  r a t e  r is k  a n d  fo re ig n  e x c h a n g e  r is k s ), c re d it  r is k  a n d  
liq u id it y  r is k . 

7 4  

A N N U A L  R E P O R T  2 0 2 0  - M A G N IS  E N E R G Y  T E C H N O L O G IE S

T h e  o v e r a ll o b je c t iv e  o f t h e  G ro u p ’s  fi n a n c ia l r is k  m a n a g e m e n t  p o lic ie s  is  t o  m e e t  it s  fi n a n c ia l t a r g e t s  w h ils t  p ro t e c t in g  
fu t u re  fi n a n c ia l s e c u r it y .

T h e  B o a rd  fu lfi ls  it s  c o r p o r a t e  g o v e r n a n c e  a n d  o v e r s ig h t  re s p o n s ib ilit ie s  b y  m o n it o r in g  a n d  re v ie w in g  t h e  in t e g r it y  o f 
fi n a n c ia l s t a t e m e n t s , t h e  e ff e c t iv e n e s s  o f in t e r n a l fi n a n c ia l c o n t ro l a n d  t h e  p o lic ie s  o n  r is k  o v e r s ig h t  a n d  m a n a g e m e n t . 
M a n a g e m e n t  is  c h a rg e d  w it h  im p le m e n t in g  t h e  p o lic ie s . 

T h e  m a n a g e m e n t  m a n a g e s  t h e  d iff e re n t  t y p e s  o f r is k s  t o  w h ic h  t h e  G ro u p  is  e x p o s e d  b y  c o n s id e r in g  r is k  a n d  m o n it o r in g  
le v e ls  o f e x p o s u re  t o  in t e re s t  r is k  a n d  b y  b e in g  a w a re  o f m a r k e t  fo re c a s t s  fo r  in t e re s t  r a t e s . 

L iq u id it y  r is k  is  m o n it o re d  t h ro u g h  g e n e r a l b u s in e s s  b u d g e t s  a n d  fo re c a s t s . T h e  B o a rd  re v ie w s  a n d  a g re e s  o n  p o lic ie s  fo r  
m a n a g in g  t h e s e  r is k s .

(b ) M a r k e t  R is k

F o r e i g n  c u r r e n c y  r i s k  

T h e  G ro u p  u n d e r t a k e s  c e r t a in  t r a n s a c t io n s  d e n o m in a t e d  in  fo re ig n  c u r re n c y  a n d  is  e x p o s e d  t o  fo re ig n  c u r re n c y  r is k  
t h ro u g h  fo re ig n  e x c h a n g e  r a t e  fl u c t u a t io n s .

F o re ig n  e x c h a n g e  r is k  a r is e s  fro m  fu t u re  c o m m e rc ia l t r a n s a c t io n s  a n d  re c o g n is e d  fi n a n c ia l a s s e t s  a n d  fi n a n c ia l lia b ilit ie s  
d e n o m in a t e d  in  a  c u r re n c y  t h a t  is  n o t  t h e  e n t it y ’s  fu n c t io n a l c u r re n c y . T h e  r is k  is  m e a s u re d  u s in g  s e n s it iv it y  a n a ly s is  a n d  
c a s h  fl o w  fo re c a s t in g .

T h e  c a r r y in g  a m o u n t  o f t h e  G ro u p ’s  fo re ig n  c u r re n c y  d e n o m in a t e d  fi n a n c ia l a s s e t s  a n d  fi n a n c ia l lia b ilit ie s  a t  t h e  re p o r t in g  
d a t e  w e re  a s  fo llo w s :

C o n s o l i d a t e d

U S  d o lla rs  

A s s e t s

L i a b i i i t i e s

2 0 2 0
$ ’0 0 0

3 ,9 8 6 ,1 6 9  

3 ,9 8 6 ,1 6 9  

2 0 1 9
$ ’0 0 0

3 ,9 4 1 ,5 5 9  

3 ,9 4 1 ,5 5 9  

2 0 2 0
$ ’0 0 0

2 4 9 ,2 4 4  

2 4 9 ,2 4 4  

2 0 1 9
$ ’0 0 0

1 8 3 ,2 3 0

1 8 3 ,2 3 0

T h e  G ro u p  h a d  n e t  a s s e t s  d e n o m in a t e d  in  fo re ig n  c u r re n c ie s  o f $ 3 ,7 5 8 ,3 2 9  (a s s e t s  o f $ 3 ,9 4 1 ,5 5 9  le s s  lia b ilit ie s  o f $ 2 4 9 ,2 4 4 ) 
a s  a t  3 0  J u n e  2 0 2 0  (2 0 1 9 : $ 3 ,7 5 8 ,3 2 9  (a s s e t s  o f $ 3 ,9 4 1 ,5 5 9  le s s  lia b ilit ie s  o f $ 1 8 3 ,2 3 0 )).

B a s e d  o n  t h is  e x p o s u re , h a d  t h e  A u s t r a lia n  d o lla r  w e a k e n e d  o r  s t re n g t h e n e d  b y  5 %  (2 0 1 9 : w e a k e n e d  b y  1 0 % /s t re n g t h e n e d  
b y  5 % ) a g a in s t  t h e s e  fo re ig n  c u r re n c ie s  w it h  a ll o t h e r  v a r ia b le s  h e ld  c o n s t a n t , t h e  c o n s o lid a t e d  e n t it y ’s  p ro fi t  b e fo re  t a x  fo r  
t h e  y e a r  w o u ld  h a v e  b e e n  $ 2 7 6 ,5 3 5  lo w e r /$ 2 7 6 ,5 3 5  h ig h e r  (2 0 1 9 : $ 3 7 5 ,8 3 3  lo w e r /$ 1 8 7 ,9 1 6  h ig h e r ) a n d  e q u it y  w o u ld  h a v e  
b e e n  $ 2 7 6 ,5 3 5 /lo w e r  $ 2 7 6 ,5 3 5  h ig h e r  (2 0 1 9 : $ 3 7 5 ,8 3 3  lo w e r /$ 1 8 7 ,9 1 6  h ig h e r ). 

T h e  p e rc e n t a g e  c h a n g e  is  t h e  e x p e c t e d  o v e r a ll v o la t ilit y  o f t h e  s ig n ifi c a n t  c u r re n c ie s , w h ic h  is  b a s e d  o n  m a n a g e m e n t ’s  
a s s e s s m e n t  o f re a s o n a b le  p o s s ib le  fl u c t u a t io n s  t a k in g  in t o  c o n s id e r a t io n  m o v e m e n t s  o v e r  t h e  la s t  6  m o n t h s  e a c h  y e a r  a n d  
t h e  s p o t  r a t e  a t  e a c h  re p o r t in g  d a t e . 

T h e  a c t u a l fo re ig n  e x c h a n g e  lo s s  fo r  t h e  y e a r  e n d e d  3 0  J u n e  2 0 2 0  w a s  $ 2 0 ,9 7 8  (2 0 1 9 : g a in  o f $ 9 6 ,1 1 4 ) 

I n t e r e s t  r a t e  r is k  

T h e  G ro u p  is  e x p o s e d  t o  m o v e m e n t s  in  m a r k e t  in t e re s t  r a t e s  o n  s h o r t -t e r m  d e p o s it s . M a n a g e m e n t  e n s u re s  a  b a la n c e  is  
m a in t a in e d  b e t w e e n  t h e  liq u id it y  o f c a s h  a s s e t s  a n d  t h e  in t e re s t  r a t e  re t u r n . P re s e n t ly , t h e  G ro u p  h a s  n o  in t e re s t  b e a r in g  
lia b ilit ie s .

A t  re p o r t in g  d a t e , t h e  G ro u p  h a d  t h e  fo llo w in g  fi n a n c ia l a s s e t s  a n d  lia b ilit ie s  e x p o s e d  m o s t ly  t o  A u s t r a lia n  v a r ia b le  in t e re s t  
r a t e s  a n d  a re  u n h e d g e d .

C a s h  a n d  c a s h  e q u iv a le n ts  

C o n s o l i d a t e d

2 0 2 0  
 $

2 0 1 9  
$

7 1 9 ,6 1 5  

1 ,8 2 9 ,8 1 7

M A G N IS  E N E R G Y  T E C H N O L O G IE S   - A N N U A L  R E P O R T  2 0 2 0  

7 5

 
 
N o t e s  t o  t h e  F in a n c ia l S t a t e m e n t s

T h e  w e ig h t e d  a v e r a g e  in t e re s t  r a t e  fo r  t h e  G ro u p  a t  re p o r t in g  d a t e  w a s  1 .7 8 %  (2 0 1 9 : 2 .5 0 % ).

In  a c c o rd a n c e  w it h  t h e  G ro u p  p o lic y  o f re v ie w in g  t h is  r is k , t h e  fo llo w in g  s e n s it iv it y  a n a ly s is  b a s e d  o n  in t e re s t  r a t e  e x p o s u re  
a t  re p o r t in g  d a t e  w h e re  t h e  in t e re s t  r a t e  m o v e m e n t  v a r ie s  a n d  o t h e r  v a r ia b le s  re m a in  c o n s t a n t , p o s t  t a x  lo s s  a n d  e q u it y  
w o u ld  h a v e  b e e n  a ff e c t e d  a s  s h o w n . T h e  a n a ly s is  h a s  b e e n  p e r fo r m e d  o n  t h e  s a m e  b a s is  fo r  b o t h  2 0 2 0  a n d  2 0 1 9 .

3 0  J u n e  2 0 2 0

C o n s o l i d a t e d  E n t i t y  

F i n a n c i a l  a s s e t  

I n t e r e s t  R a t e  R i s k   -1 %

I n t e r e s t  R a t e  R i s k  +1 %

C a r r y i n g  
A m o u n t

N e t  L o s s
$

E q u i t y   
$

N e t  L o s s
$

E q u i t y   
$

C a s h  a n d  c a s h  e q u iv a le n ts  

7 1 9 ,6 1 5  

(7 ,1 9 6 )  

(7 ,1 9 6 ) 

7 ,1 9 6  

7 ,1 9 6

3 0  J u n e  2 0 1 9

C o n s o l i d a t e d  E n t i t y  

F i n a n c i a l  a s s e t  

I n t e r e s t  R a t e  R i s k   -1 %

I n t e r e s t  R a t e  R i s k  +1 %

C a r r y i n g  
A m o u n t

N e t  L o s s
$

E q u i t y   
$

N e t  L o s s
$

E q u i t y   
$

C a s h  a n d  c a s h  e q u iv a le n ts  

1 ,8 2 9 ,8 1 7  

(1 8 ,2 9 8 )  

(1 8 ,2 9 8 ) 

1 8 ,2 9 8  

1 8 ,2 9 8

T h e  s e n s it iv it y  w a s  lo w e r  d u r in g  2 0 2 0  t h a n  2 0 1 9  b e c a u s e  o f lo w e r  c a s h  b a la n c e s . T h e  a n a ly s is  a s s u m e s  t h e  c a r r y in g  
a m o u n t s  n o t e d  w ill b e  m a in t a in e d  o v e r  t h e  n e x t  fi n a n c ia l y e a r.

(c ) C r e d it  r is k

C re d it  r is k  re fe r s  t o  t h e  r is k  t h a t  a  c o u n t e r p a r t y  w ill d e fa u lt  o n  it s  c o n t r a c t u a l o b lig a t io n s  re s u lt in g  in  fi n a n c ia l lo s s  t o  t h e  
G ro u p . T h e  m a x im u m  e x p o s u re  t o  c re d it  r is k  a t  t h e  re p o r t in g  d a t e  t o  re c o g n is e d  fi n a n c ia l a s s e t s  is  t h e  c a r r y in g  a m o u n t , 
n e t  o f a n y  p ro v is io n s  fo r  im p a ir m e n t  o f t h o s e  a s s e t s , a s  d is c lo s e d  in  t h e  s t a t e m e n t  o f fi n a n c ia l p o s it io n  a n d  N o t e s  t o  t h e  
fi n a n c ia l s t a t e m e n t s . T h e  G ro u p  d o e s  n o t  h o ld  a n y  c o lla t e r a l.

T h e  G ro u p  h a s  a d o p t e d  a  s im p lifi e d  life t im e  e x p e c t e d  lo s s  a llo w a n c e  in  e s t im a t in g  e x p e c t e d  c re d it  lo s s e s  t o  t r a d e  a n d  
o t h e r  re c e iv a b le s .

T h e  G ro u p  h a s  n o  s ig n ifi c a n t  c o n c e n t r a t io n s  o f c re d it  r is k . T h e  m a x im u m  e x p o s u re  t o  c re d it  r is k  a t  re p o r t in g  d a t e  is  t h e  
c a r r y in g  a m o u n t  (n e t  o f e x p e c t e d  c re d it  lo s s ) o f t h o s e  a s s e t s  a s  d is c lo s e d  in  t h e  s t a t e m e n t  o f fi n a n c ia l p o s it io n  a n d  N o t e s  
t o  t h e  fi n a n c ia l s t a t e m e n t s .

(d ) L iq u id it y  r is k

L iq u id it y  r is k  a r is e s  fro m  t h e  fi n a n c ia l lia b ilit ie s  o f t h e  G ro u p  a n d  t h e  G ro u p ’s  s u b s e q u e n t  a b ilit y  t o  m e e t  t h e ir  o b lig a t io n s  
t o  re p a y  t h e ir  fi n a n c ia l lia b ilit ie s  a s  a n d  w h e n  t h e y  fa ll d u e .

T h e  G ro u p ’s  o b je c t iv e  is  t o  m a in t a in  a  b a la n c e  b e t w e e n  c o n t in u it y  o f fu n d in g  a n d  fl e x ib ilit y  a s  t o  it s  s o u rc e .

T h e  D ire c t o r s  m o n it o r  c a s h  fl o w  m o n t h ly  a n d  in c re a s e  t h e  fre q u e n c y  o f re v ie w  w h e n  t h e  s a fe t y  m a rg in  is  o r  is  n e a r ly  
b re a c h e d . T h e  B o a rd  fo r m u la t e s  p la n s  t o  re p le n is h  it s  c a s h  re s o u rc e s  w h e n  re q u ire d  a n d  im p le m e n t s  c o s t  re d u c t io n  
p ro g r a m m e s  t o  re d u c e  c a s h  e x p e n d it u re .

T h e  t a b le  b e lo w  re fl e c t s  a ll c o n t r a c t u a lly  fi x e d  p a y -o ff s , re p a y m e n t s , a n d  in t e re s t  fro m  re c o g n is e d  fi n a n c ia l lia b ilit ie s  .F o r  
t h e s e  o b lig a t io n s  t h e  u n d is c o u n t e d  c a s h  fl o w s  fo r  t h e  re s p e c t iv e  u p c o m in g  fi n a n c ia l y e a r s  a re  p re s e n t e d . C a s h  fl o w s  fo r  
fi n a n c ia l a s s e t s  a n d  lia b ilit ie s  w it h o u t  fi x e d  t im in g  o r  a m o u n t  a re  b a s e d  o n  t h e  c o n d it io n s  e x is t in g  a t  3 0  J u n e  2 0 2 0 .

7 6  

A N N U A L  R E P O R T  2 0 2 0  - M A G N IS  E N E R G Y  T E C H N O L O G IE S

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
T h e  re m a in in g  c o n t r a c t u a l m a t u r it ie s  o f t h e  G ro u p  e n t it y ’s  fi n a n c ia l lia b ilit ie s  c o n s is t in g  o f t r a d e  a n d  o t h e r  p a y a b le s  a re :

O n  d e m a n d  

L e s s  t h a n  1  y e a r  

1 -5  y e a r s  

> 5  y e a r s  

(e ) N e t  F a ir  V a lu e s

C o n s o l i d a t e d

2 0 2 0   
$

- 

2 0 1 9  
 $

-

1 ,7 9 4 ,6 0 7  

5 9 0 ,8 0 0

- 

- 

-

-

1 ,7 9 4 ,6 0 7  

5 9 0 ,8 0 0

T h e  c a r r y in g  a m o u n t s  o f fi n a n c ia l a s s e t s  a n d  lia b ilit ie s  a s  s h o w n  in  t h e  s t a t e m e n t  o f fi n a n c ia l p o s it io n  a p p ro x im a t e  t h e ir  
fa ir  v a lu e .

3 0 . G O V E R N M E N T  G R A N T S  A N D  A S S I S T A N C E
J o b K e e p e r  P a y m e n t  

T h is  p a y m e n t  is  in t e n d e d  t o  h e lp  k e e p  m o re  A u s t r a lia n s  in  jo b s  a n d  s u p p o r t  b u s in e s s e s  a ff e c t e d  b y  t h e  s ig n ifi c a n t  
e c o n o m ic  im p a c t  o f C O V ID -1 9 . T h e  e x is t in g  J o b K e e p e r  P a y m e n t  w ill re m a in  in  p la c e  u n t il 2 7  S e p t e m b e r  2 0 2 0 . O n  2 1  
J u ly  2 0 2 0 , t h e  g o v e r n m e n t  a n n o u n c e d  t h e  e x t e n s io n  o f t h e  J o b K e e p e r  p a y m e n t  t o  2 8  M a rc h  2 0 2 1  a t  m o d ifi e d  r a t e s  a n d  
e lig ib ilit y . T h e  J o b K e e p e r  p a y m e n t  is  re c o rd e d  n e t  o f m a n p o w e r  re la t e d  e x p e n s e s . T h e  C o m p a n y  c o lle c t e d  $ 2 1 ,0 0 0  in  
J o b K e e p e r  p a y m e n t s  o n  b e h a lf o f e lig ib le  s t a ff , a ll o f w h ic h  w a s  u s e d  t o  s u b s id is e  w a g e s  o f w o r k in g  e m p lo y e e s . 

C a s h fl o w  b o o s t  

Te m p o r a r y  c a s h  fl o w  b o o s t  p a y m e n t s  w e re  m a d e  b y  t h e  A T O  t o  s u p p o r t  e lig ib le  s m a ll a n d  m e d iu m  b u s in e s s e s  d u r in g  t h e  
e c o n o m ic  d o w n t u r n  a s s o c ia t e d  w it h  C O V ID -1 9 . T h e  c o m p a n y  q u a lifi e d  fo r  t h e  s c h e m e  a n d  c o lle c t e d  $ 5 0 ,0 0 0  in  c a s h  fl o w  
b o o s t  p a y m e n t s .

M A G N IS  E N E R G Y  T E C H N O L O G IE S   - A N N U A L  R E P O R T  2 0 2 0  

7 7

 
 
 
 
 
 
12D ire c t o r s ’ D e c la r a t io n

In  a c c o rd a n c e  w it h  a  re s o lu t io n  o f t h e  D ire c t o r s  o f M a g n is  E n e r g y  Te c h n o lo g ie s  L im it e d , I s t a t e  t h a t :

1 .  

In  t h e  o p in io n  o f t h e  D ire c t o r s :

a ) 

 t h e  fi n a n c ia l s t a t e m e n t s  a n d  N o t e s  o f t h e  c o n s o lid a t e d  e n t it y  a re  in  a c c o rd a n c e  w it h  t h e  C o r p o r a t io n s  A c t  2 0 0 1 , 
in c lu d in g :

(i) 

 G iv in g  a  t r u e  a n d  fa ir  v ie w  o f it s  fi n a n c ia l p o s it io n  a s  a t  3 0  J u n e  2 0 2 0  a n d  p e r fo r m a n c e  fo r  t h e  fi n a n c ia l y e a r  
e n d e d  o n  t h a t  d a t e .

(ii) 

 C o m p ly in g  w it h  A c c o u n t in g  S t a n d a rd s  (in c lu d in g  t h e  A u s t r a lia n  A c c o u n t in g  In t e r p re t a t io n s ) a n d  t h e  
C o r p o r a t io n s  R e g u la t io n s  2 0 0 1 .

b ) 

 T h e  fi n a n c ia l s t a t e m e n t s  a n d  N o t e s  a ls o  c o m p ly  w it h  In t e r n a t io n a l F in a n c ia l R e p o r t in g  S t a n d a rd s  a s  d is c lo s e d  in  
N o t e  1 .

c ) 

 T h e re  a re  re a s o n a b le  g ro u n d s  t o  b e lie v e  t h a t  t h e  C o m p a n y , a s  n o t e d  b y  D ire c t o r s  in  N o t e  1  – G o in g  c o n c e r n , w ill b e  
a b le  t o  p a y  it s  d e b t s  a s  a n d  w h e n  t h e y  b e c o m e  d u e  a n d  p a y a b le .

2 . 

 T h is  d e c la r a t io n  h a s  b e e n  m a d e  a f t e r  re c e iv in g  t h e  d e c la r a t io n s  re q u ire d  t o  b e  m a d e  t o  t h e  D ire c t o r s  in  a c c o rd a n c e  
w it h  s e c t io n  2 9 5 A  o f t h e  C o r p o r a t io n s  A c t  2 0 0 1  fo r  t h e  fi n a n c ia l y e a r  e n d e d  3 0  J u n e  2 0 2 0 .

O n  b e h a lf o f t h e  b o a rd  

F  P o u l l a s

E X E C U T I V E  C H A I R M A N

S y d n e y , 3 0  S e p t e m b e r  2 0 2 0

7 8  

A N N U A L  R E P O R T  2 0 2 0  - M A G N IS  E N E R G Y  T E C H N O L O G IE S

 
 
 
 
 
 
 
 
13In d e p e n d e n t  A u d it o r ’s  R e p o r t

MAGNIS ENERGY TECHNOLOGIES LIMITED 
AND CONTROLLED ENTITIES 
ABN 26 115 111 763 

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF MAGNIS ENERGY 
TECHNOLOGIES LIMITED 

REPORT ON THE AUDIT OF CONSOLIDATED FINANCIAL STATEMENTS 

Report on the Financial Report 

Opinion 

We  have  audited  the  financial  report  of  Magnis  Energy  Technologies  Limited  and  Controlled 
Entities (the Group), which comprises the consolidated statement of financial position as at 30 
June 2020, the consolidated statement of profit and loss and other comprehensive income, the 
consolidated  statement  of  changes  in  equity  and  the  consolidated  statement  of  cash  flows  for 
the year then ended, and notes to the consolidated financial statements, including a summary of 
significant accounting policies and other explanatory information, and the directors’ declaration. 

In  our  opinion  the  accompanying  financial  report  of  Magnis  Energy  Technologies  Limited  and 
Controlled Entities is in accordance with the Corporations Act 2001, including: 

(a) 

(b) 

giving  a  true  and  fair  view  of  the  Group’s  financial  position  as  at  30  June 
2020 and of its financial performance for the year then ended; and 

complying  with  Australian  Accounting  Standards  and 
Regulations 2001; and 

the  Corporations 

Basis for Opinion 

We  conducted  our  audit  in  accordance  with  Australian  Auditing  Standards.  Those  standards 
require that we comply with relevant ethical requirements relating to audit engagements and plan 
and perform the audit to obtain reasonable assurance about whether the financial report is free 
from material misstatement. Our responsibilities under those standards are further described in 
the Auditor’s 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  confirm  that  the  independence  declaration  required  by  the  Corporations  Act  2001,  which 
has been given to the directors of the company. 

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a 
basis for our opinion. 

Material Uncertainty Related to Going Concern 
We draw attention to Note 1 in the financial report, which indicates that the company incurred 
a  net  loss  of  $7,378,601  during  the  year  ended  30  June  2020  and,  as  of  that  date;  the 
company's  total current  liabilities  exceeded  its  total  current  assets by $577,149.  As stated  in 
Note  1  these  conditions,  along  with  other  matters  as  set  forth  in  Note  1,  indicate  that  a 
material  uncertainty  exists  that  may  cast  significant  doubt  about  the  company’s  ability  to 
continue as a going concern and therefore, the company may be unable to realise its assets 
and discharge its liabilities in the normal course of business and at the amounts stated in the 
financial report. Our opinion is not modified in respect of this matter. 

MAGNIS ENERGY TECHNOLOGIES LIMITED: ANNUAL FINANCIAL REPORT 2020 

58 

SYDNEY   ·   PENRITH   ·   MELBOURNE   ·   BRISBANE   ·   PERTH   ·   DARWIN  
Liability limited by a scheme approved under Professional Standards Legislation 
www.hallchadwick.com.au 

M A G N IS  E N E R G Y  T E C H N O L O G IE S   - A N N U A L  R E P O R T  2 0 2 0  

7 9

 
 
 
 
 
 
 
 
 
 
 
 
 
 
In d e p e n d e n t  A u d it o r ’s  R e p o r t

MAGNIS ENERGY TECHNOLOGIES LIMITED 
AND CONTROLLED ENTITIES 
ABN 26 115 111 763 

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF MAGNIS ENERGY TECHNOLOGIES LIMITED 

Key Audit Matters 

Key  audit  matters  are  those  matters  that,  in  our  professional  judgement,  were  of  most  significance  in  our 
audit of the financial report for the year ended 30 June 2020. 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 

Investment in Charge CCV LLC 
Refer to Note 10 ‘Financial Assets at FVOCI 

At  30  June  2020,  the  Consolidated  Entity  had  an 
investment  in  Charge  CCCV  LLC  “C4V”  an  entity 
external  to  the  Group  and  recorded  at  a  value  of 
$7,495,561. The Group’s accounting policy in respect of 
this investment is outlined in Note 10. 

This is a key audit matter because of the judgements and 
estimates  along  with  the  disclosure  considerations  that 
are  required  in  relation  to  management’s  assessment  of 
the fair value to ensure that these are in accordance with 
AASB 13 Fair Value, AASB 9 Financial Instruments and 
AASB 7 Financial Instruments: Disclosures. 

Our procedures included, amongst others: 

  Obtaining and evaluating management’s assessment 
and  assumptions  made  in  relation  to  the  investment 
in  C4V  to  ensure  the  classification  of  the  asset 
continues to be appropriate. 

  Evaluating management’s financial model to support 
the fair value of C4V, including the challenging of key 
assumptions  as  reported  in  Note  10  as  well  as 
checking  the  mathematical  accuracy  of  the  model 
and underlying calculations 

  Gaining  an  understanding  of  quantum  of  funds 
required  to  ensure  Nachu,  iM3NY  and  iM3TSV 
progress  to  development  and  into  production  to 
produce the royalty cash flows to C4V. 

  Reviewing the mandate with HSBC to act as financial 

advisor in seeking funding. 

  Evaluating  the  accuracy  and  completeness  of  the 
disclosures  in  accordance  with  AASB  9,  AASB  13 
and AASB 7. 

Key Audit Matter 

How Our Audit Addressed the Key Audit Matter 

Property, Plant and Equipment 
Refer to Note 12 ‘Property, Plant and Equipment’ 

The  group  has  $11,987,741  of  property,  plant  and 
equipment  at  30  June  2020.  Included  in  the  carrying 
value  is  equipment  held  by  a  subsidiary  amounting  to 
$11,971,650. 

We  focused  on  this  matter  as  a  key  audit  matter  as 
equipment is the most significant asset of the group. 

Our procedures included amongst others: 

  Assessed  the  Group’s  analysis  for  indicators  of 
impairment,  including  the  views  of  managements 
valuation  specialists.  This  included  consideration  of 
whether  any  movements  in  the  valuation  drivers 
indicated potential impairment by comparing them to 
historical results in addition to economic and industry 
forecasts. 

  We assessed the adequacy of group's disclosures in 
relation  to  the  carrying  value  of  property,  plant  & 
equipment. 

MAGNIS ENERGY TECHNOLOGIES LIMITED: ANNUAL FINANCIAL REPORT 2020 

59 

8 0  

A N N U A L  R E P O R T  2 0 2 0  - M A G N IS  E N E R G Y  T E C H N O L O G IE S

 
 
 
 
 
 
 
 
 
 
 
 
MAGNIS ENERGY TECHNOLOGIES LIMITED 
AND CONTROLLED ENTITIES 
ABN 26 115 111 763 

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF MAGNIS ENERGY TECHNOLOGIES LIMITED 

Key Audit Matter 

How Our Audit Addressed the Key Audit Matter 

Development Asset 
Refer to Note 11 ‘Development Asset 

The  Group  has  $5,577,131  recorded  as  development 
asset  as  at  30  June  2020.  The  Group’s  accounting 
policy in respect of exploration and evaluation assets is 
outlined in Note 11. 

judgements  are  applied 

This is a key audit matter because the carrying value of 
the  assets  are  material  to  the  financial  statements  and 
significant 
in  determining 
whether  an  indicator  of  impairment  exists  in  relation  to 
capitalised  exploration  and  expenditure  assets 
in 
accordance with Australian Accounting Standard AASB 
6 Exploration for and Evaluation of Mineral Resources. 

Our Procedures included, amongst others: 

 

In  assessing  whether  an  indicator  of  impairment 
exists in relation to the Group’s exploration assets 
in accordance with AASB 6 – Exploration for and 
Evaluation of Mineral Resources, we: 

o  examined the minutes of the Group’s board 
meetings  and  updates  from  the  Group’s 
exploration partners; 

o  discussed  with  management  of  the  Group’s 
ability  and  intention  to  undertake  further 
exploration activities; and 
reviewed the tenements profile and ensured 
any 
that  have  been  surrendered  were 
expensed as required. 

o 

  We tested a sample of additions of capitalised 

exploration expenditure to supporting 
documentation. 

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 2020, but does not include the financial report and our auditor’s report 
thereon. Our opinion on the financial report does not cover the other information and accordingly we do not express any 
form of assurance conclusion thereon. In connection with our audit of the financial report, our responsibility is to read the 
other  information  and,  in  doing  so,  consider  whether  the  other  information  is  materially  inconsistent  with  the  financial 
report or our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we 
have performed, we conclude that there is a material misstatement of this other information, we are required to report that 
fact. We have nothing to report in this  regard. 

Responsibilities of the Directors for the Financial Report 

The directors of the company are responsible for the preparation of the financial report that gives a true and fair view in 
accordance  with  Australian  Accounting  Standards  and  the  Corporations  Act  2001  and  for  such  internal  control  as  the 
directors determine is necessary to enable the preparation of the financial report that gives a true and fair view and is free 
from material misstatement, whether due to fraud or error. In preparing the financial report, the directors are responsible 
for assessing the ability of the Group to continue as a going concern, disclosing, as applicable, matters related to going 
concern and using the going concern basis of accounting unless the directors either intend to liquidate the Group or to 
cease operations, or have no realistic alternative but to do  so. 

MAGNIS ENERGY TECHNOLOGIES LIMITED: ANNUAL FINANCIAL REPORT 2020 

60 

M A G N IS  E N E R G Y  T E C H N O L O G IE S   - A N N U A L  R E P O R T  2 0 2 0  

8 1

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
In d e p e n d e n t  A u d it o r ’s  R e p o r t

MAGNIS ENERGY TECHNOLOGIES LIMITED 
AND CONTROLLED ENTITIES 
ABN 26 115 111 763 

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF MAGNIS ENERGY TECHNOLOGIES LIMITED 

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. 

As  part  of  an  audit  in  accordance  with  the  Australian  Auditing  Standards,  we  exercise  professional  judgement  and 
maintain professional skepticism throughout the audit. We also: 

– 

– 

– 

– 

– 

– 

Identify and assess the  risks of material misstatement of the financial report, whether due to fraud or error, 
design  and  perform audit  procedures  responsive  to  those  risks,  and  obtain  audit  evidence  that is sufficient 
and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting 
from  fraud  is  higher  than  for  one  resulting  from  error,  as  fraud  may  involve  collusion,  forgery,  intentional 
omissions, misrepresentations, or the override of internal control 

Obtain an understanding of internal control relevant to the audit in order to design audit 
procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the 
effectiveness of the Group’s internal control. 

Evaluate  the  appropriateness of  accounting  policies  used  and  the  reasonableness  of  accounting  estimates 
and related disclosures made by the directors. 

Conclude on the appropriateness of the directors’ use of the going concern basis of accounting and, based on 
the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast 
significant  doubt  on  the  Group’s  ability  to  continue  as  a  going  concern.  If  we  conclude  that  a  material 
uncertainty  exists,  we  are  required  to  draw  attention  in  our  auditor’s  report  to  the  related  disclosures  in  the 
financial report or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the 
audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause 
the Group to cease to continue as a going concern. 

Evaluate the overall presentation, structure and content of the financial report, including the disclosures, and 
whether the financial report represents the underlying transactions and events in a manner that achieves fair 
presentation. 

Obtain  sufficient  appropriate  audit  evidence  regarding  the  financial  information  of  the  entities  or  business 
activities within the Group to express an opinion on the financial report. We are  responsible for the direction, 
supervision and performance of the Group audit. We remain solely responsible for our audit opinion. 

We  communicate  with  the  directors  regarding,  among  other  matters,  the  planned  scope  and  timing  of  the 
audit  and  significant  audit  findings,  including  any  significant  deficiencies  in  internal  control  that  we  identify 
during our audit. 

We  also  provide  the  directors  with  a  statement  that  we  have  complied  with  relevant  ethical  requirements 
regarding  independence,  and  to  communicate  with  them  all  relationships  and  other  matters  that  may 
reasonably be thought to bear on our independence, and where applicable, related safeguards. 

MAGNIS ENERGY TECHNOLOGIES LIMITED: ANNUAL FINANCIAL REPORT 2020 

61 

8 2  

A N N U A L  R E P O R T  2 0 2 0  - M A G N IS  E N E R G Y  T E C H N O L O G IE S

 
 
 
 
 
 
 
 
 
 
 
 
MAGNIS ENERGY TECHNOLOGIES LIMITED 
AND CONTROLLED ENTITIES
ABN 49 089 206 986 

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF MAGNIS ENERGY TECHNOLOGIES 
LIMITED

From the matters communicated with the directors, we determine those matters that were of most significance 
in the audit of the financial report of the current period and are therefore the key audit matters. We describe 
these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or 
when, in extremely rare circumstances, we determine that a matter should not be communicated in our report 
because the adverse consequences of doing so would reasonably be expected to outweigh the public interest 
benefits of such communication.

Report on the Remuneration Report

We have audited the remuneration report included in pages 11 to 17 of the directors’ report for the year ended 
30 June 2020.

In our opinion, the remuneration report of  Magnis Energy Technologies  Limited, for the year ended 30 June 
2020, complies with 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.

Hall Chadwick 

Melbourne VIC 3000

DREW TOWNSEND

Partner

Date: 30 September 2020

MAGNIS ENERGY TECHNOLOGIES LIMITED: ANNUAL FINANCIAL REPORT 2020

62

M A G N IS  E N E R G Y  T E C H N O L O G IE S   - A N N U A L  R E P O R T  2 0 2 0  

8 3

14A d d it io n a l S h a re h o ld e r  In fo r m a t io n

A d d it io n a l in fo r m a t io n  re q u ire d  b y  t h e  A u s t r a lia n  S e c u r it ie s  E x c h a n g e  L t d  a n d  n o t  s h o w n  e ls e w h e re  in  t h is  re p o r t  is  a s  
fo llo w s .  T h e  in fo r m a t io n  is  c u r re n t  a s  a t  7  O c t o b e r  2 0 2 0 . 

A ) D I S T R I B U T I O N  O F  E Q U I T Y  S E C U R I T I E S

T h e  n u m b e r s  o f s h a re h o ld e r s , b y  s iz e  o f h o ld in g , in  e a c h  c la s s  o f s h a re  a re :

1  – 1 ,0 0 0  

1 ,0 0 1  – 5 ,0 0 0  

5 ,0 0 1  – 1 0 ,0 0 0  

1 0 ,0 0 1  – 1 0 0 ,0 0 0  

1 0 0 ,0 0 1  a n d  o v e r 

T h e  n u m b e r o f s h a re h o ld e rs  h o ld in g  le s s  th a n  a  m a rk e ta b le  p a rc e l o f s h a re s  a re : 

B ) D I S T R I B U T I O N  O F  O P T I O N  S E C U R I T I E S

T h e  n u m b e r s  o f o p t io n h o ld e r s , b y  s iz e  o f h o ld in g  a re :

1  – 2 5 0 ,0 0 0  

2 5 0 ,0 0 1  – 1 ,0 0 0 ,0 0 0  

1 ,0 0 0 ,0 0 1  – 1 ,5 0 0 ,0 0 0  

1 ,5 0 0 ,0 0 1  a n d  o v e r 

O r d i n a r y  S h a r e s

N u m b e r  o f  h o l d e r s

N u m b e r  o f  s h a r e s

 4 0 0  

1 ,9 0 2  

1 ,1 8 1  

2 ,7 7 1  

 8 3 1  

 7 ,0 8 5  

1 ,1 7 4  

O rd in a r y  s h a re s  

1 7 3 ,6 6 9

6 ,0 0 7 ,9 9 7

9 ,8 5 6 ,6 8 6

1 0 0 ,9 7 9 ,2 3 5

5 9 0 ,0 4 7 ,2 1 1

7 0 7 ,0 6 4 ,7 9 8

1 ,7 0 1 ,7 1 4

O p t i o n s

N u m b e r  o f  h o l d e r s

N u m b e r  o f  o p t i o n s

 2  

3  

1  

1  

  7  

5 0 0 ,0 0 0

3 ,0 0 0 ,0 0 0

1 ,5 0 0 ,0 0 0

4 ,0 0 0 ,0 0 0

9 ,0 0 0 ,0 0 0

8 4  

A N N U A L  R E P O R T  2 0 2 0  - M A G N IS  E N E R G Y  T E C H N O L O G IE S

 
 
 
C ) T W E N T Y  L A R G E S T  S H A R E H O L D E R S

T h e  n a m e s  o f t h e  t w e n t y  la rg e s t  h o ld e r s  o f q u o t e d  s h a re s  a re :

N a m e

C IT IC O R P  N O M IN E E S  P T Y  LT D   

M A Z Z D E L  P T Y  LT D   

B N P  PA R IB U S  N O M IN E E S  P T Y  LT D  

M A Z Z D E L  P T Y  LT D   

M R  F R A N K  P O U L L A S  

M R  M AT T H E W  JO H N  B O Y S E N   

H S B C  C U S T O D Y  N O M IN E E S  (A U S T R A L IA ) L IM IT E D   

J K B  A L P H A  P T Y  LT D   

M R  M A R LO N  PAT H E R  

M R  M AT T H E W  JO H N  B O Y S E N   

M R  JO H N  P E T E R  S A U N IG  

M IS S  H A Z E L  D A R C Y   

M A X M A  FA M ILY  P T Y  LT D  

K M J  C O N S U LT IN G  P T Y  LT D   

M R  R U IE  YA O   

M R  E M M A N U E L  P O U L L A S  

M R  JU R G E N  B E H R E N S    

M R  E D D Y  S A M U E L  H A D D A D  

F IN M IN S O LU T IO N S  P T Y  LT D  

J P  M O R G A N  N O M IN E E S  A U S T R A L IA  P T Y  LT D  

S Y D N E Y  W Y D E  H O L D IN G S  P T Y  LT D  

O p t i o n s

N u m b e r  o f  s h a r e s

%  o f  o r d i n a r y  s h a r e s

6 7 ,3 7 3 ,9 7 8  

3 5 ,1 0 6 ,1 7 5  

2 2 ,7 6 1 ,1 7 1  

2 1 ,6 3 3 ,6 7 8                            

1 2 ,5 2 9 ,5 8 0  

 1 1 ,6 9 5 ,5 7 4  

   5 ,4 3 2 ,8 6 9  

   5 ,0 0 0 ,0 0 0  

   5 ,0 0 0 ,0 0 0  

   4 ,9 5 0 ,0 0 0  

   4 ,1 7 9 ,3 2 2  

   4 ,0 8 9 ,4 6 2  

4 ,0 0 0 ,0 0 0  

3 ,9 2 1 ,3 8 7  

3 ,8 1 5 ,8 0 1  

   3 ,4 8 6 ,9 9 3  

   3 ,4 8 5 ,7 5 0  

   3 ,4 8 5 ,6 3 4  

   3 ,4 8 0 ,7 1 4  

3 ,2 2 3 ,8 7 6  

3 ,1 0 0 ,0 0 0  

 2 3 1 ,7 5 1 ,9 6 4  

9 .5 3

4 .9 7

3 .2 2

3 .0 6

1 .7 7

1 .6 5

0 .7 7

0 .7 1

0 .7 1

0 .7 0

0 .5 9

0 .5 8

0 .5 7

0 .5 5

0 .5 4

0 .4 9

0 .4 9

0 .4 9

0 .4 9

0 .4 6  

0 .4 4

3 2 .7 8

D ) S U B S T A N T I A L  S H A R E H O L D E R S

T h e  n a m e s  o f s u b s t a n t ia l s h a re h o ld e r s  w h o  h a v e  n o t ifi e d  t h e  C o m p a n y  in  a c c o rd a n c e  w it h  s e c t io n  6 7 1 B  o f t h e  
C o r p o r a t io n s  A c t , 2 0 0 1  a re :

O p t i o n s

N u m b e r  o f  h o l d e r s

N u m b e r  o f  o p t i o n s

5 6 ,7 3 9 ,8 5 3  

9 .5 3

M A Z Z D E L  P T Y  L IM IT E D   

V o t in g  r ig h t s

A ll o rd in a r y  s h a re s  c a r r y  o n e  v o t e  p e r  s h a re  w it h o u t  re s t r ic t io n .

E ) S T O C K  E X C H A N G E  L I S T I N G

M a g n is  E n e rg y  Te c h n o lo g ie s  L im it e d  is  lis t e d  o n  t h e  A u s t r a lia n  S t o c k  E x c h a n g e .

T h e  C o m p a n y ’s  A S X  c o d e  fo r  o rd in a r y  s h a re s  is  M N S .

M A G N IS  E N E R G Y  T E C H N O L O G IE S   - A N N U A L  R E P O R T  2 0 2 0  

8 5

     
 
8 6  

A N N U A L  R E P O R T  2 0 2 0  - M A G N IS  E N E R G Y  T E C H N O L O G IE S

M A G N IS  E N E R G Y  T E C H N O L O G IE S   - A N N U A L  R E P O R T  2 0 2 0  

8 7

8 8  

A N N U A L  R E P O R T  2 0 2 0  - M A G N IS  E N E R G Y  T E C H N O L O G IE S