P +61 8 6383 6593
info@rarex.com.au
ASX: REE
rarex.com.au
Annual Report
RareX Limited
2024
RareX HQ
Level 1, 338 Barker Rd
Subiaco WA 6008
Australia
1
Table of Contents
Corporate Directory ..................................................................................................................................... 2
Review of Operations .................................................................................................................................. 3
Directors’ Report ....................................................................................................................................... 18
Auditor’s Independence Declaration ........................................................................................................ 33
Financial Statements ................................................................................................................................ 34
Consolidated entity disclosure statement …………………………………………………………………………………………………73
Director’s Declaration…………………………………………………………………………………………………………………………………….74
Auditor’s Report ......................................................................................................................................... 75
Mineral Resource Statement .................................................................................................................... 78
Schedule of Mining Tenements ............................................................................................................... 80
ASX Additional Information ...................................................................................................................... 81
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Corporate Directory
DIRECTORS
Mr Jeremy Robinson
Non-Executive Chairman
Mr James Durrant
Managing Director & CEO
Mr Danny Goeman
Non-Executive Director
Mr Shaun Hardcastle
Non-Executive Director
COMPANY SECRETARY
Ms Oonagh Malone
REGISTERED OFFICE & PRINCIPAL PLACE
OF BUSINESS
Level 1, 338 Barker Road
Subiaco, Western Australia 6008
Telephone:
(08) 6383 6593
Website: www.rarex.com.au
LAWYERS
Hamilton Locke
Central Park, Level 39
152-158 St Georges Terrace
Perth, Western Australia 6000
AUDITOR
SW Audit
Level 18, 197 St Georges Terrace
Perth, Western Australia 6000
SHARE REGISTRY
Automic Registry Services
Level 2, 267 St Georges Terrace
Perth, Western Australia 6000
Telephone: 1300 288 664
ASX CODES: REE, REEO
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Review of Operations
The Board of RareX Limited (RareX) is pleased to provide a review of operations across the
Company’s asset portfolio for the 2024 financial year and to date.
Managing Director’s Statement
Dear Shareholders,
I would like to take this opportunity, with the release of our annual report, to reflect on the year that's
been, present our vision for the future, and thank shareholders past and present for their support - most
particularly those that have supported the business through challenging macro and microeconomic
conditions.
During this year, rare earth prices, to which we are most heavily leveraged, have seen a significant drop
from their US$150+ per kilogram NdPr highs of 2022 down to the current mid to high US$40/kg range.
This impacts all projects and is well below incentive pricing. Most indications suggest a return to over
US$100 per kilogram in the next few years. Recently, some indications of a recovery have emerged, but
with ongoing uncertainty with respect to the sustainability of the recovery.
Our primary engineering project, Cummins Range, remains well positioned as both a phosphate and a
rare earth project, and we are now taking this opportunity to find low cost phosphate startup for this
longer term rare earth project. We do this against a backdrop of steady progress at Cummins Range,
including the de-risking of the supply chain to the port of Wyndham, defining the resource, advancing the
offtake process and progressing our relationships with the native title groups. We have progressed our
mining agreement with the heritage and environmental components and baselines now largely complete.
This year we also reflected on the broad risks associated with single project orientated businesses and
we have consequently started developing a pipeline of inorganic growth options. The first milestone of
this was the acquisition of the Khaleesi Project in the East Yilgarn which has excellent indications of a
rare earth - niobium mineralised system as well as showing a considerable opportunity for base and
precious metals.
The package of tenements at Khaleesi are being processed into their 'granted' status, including with one
of the most expeditious heritage access agreements with the UUNAC, and we are planning a significant
drilling program in the near future.
The inorganic growth opportunity of the business does not stop with Khaleesi, and we have refined our
search criteria. We are evaluating projects and have some specific targets into which we are putting
significant effort.
Part of our business development program sees us take a position in Saudi Arabia which we regard as
geologically attractive and a real emerging mining jurisdiction with the strong geology augmented by a
strong, financially backed, intent to establish a mining industry ecosystem similar to Australia. We are
working with the public tender process and in parallel forming a position in country to work on projects
that are not in the public space.
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We have also begun working with advisors, Hunter and Co, on a particular target and also to bring in
projects from further afield that are in a more advanced status than we might otherwise have access to.
This year we also saw some changes in the leadership of the Company and I have been fortunate enough
to have been entrusted by the Board to lead the company as Managing Director. My objective remains to
be transparent with the direction of this business, even when times are challenging, and I have set up
systems to facilitate strong interaction between shareholders and the Company.
I am looking forward to RareX engineering an efficient startup for Cummins Range. I am also looking
forward to our first high impact drilling program at Khaleesi which will go through the cover sequence
and into the host rock where we see signs of mineralised carbonatites. I also look forward to what our
business development activities can deliver for our shareholders in addition to the current portfolio.
James Durrant
Managing Director
Figure 1: Jaru site visit to Cummins Range Rare Earths & Phosphate Project.
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Cummins Range Rare Earths & Phosphate Project
RareX’s flagship, 100%-owned Cummins Range Project is a nationally significant rare earths and
phosphate project located in the Kimberley region of Western Australia, 135km southeast of the town
of Halls Creek. Halls Creek is well provisioned for infrastructure with power, water and a sealed
airstrip. The Cummins Range Project is serviced by the Great Northern Highway which connects to
the Port of Wyndham.
Enhanced scoping study
At the start of the financial year RareX released an enhanced Scoping Study for Cummins Range. The
study built upon learnings and recommendations from the September 2022 Scoping Study,
metallurgical testwork and the 2023 updated Mineral Resource Estimate which positioned Cummins
Range as Australia’s largest undeveloped rare earths project.
The Project outlined in the Scoping Study is based on the Mineral Resource Estimate published to the
ASX on1 May 2023.
Stage 1: Low CAPEX (A$45M), direct shipping ore (DSO), direct application (DA), high-bioavailability,
organic rock phosphate fertiliser for agricultural purposes. A production rate of up to 300 ktpa of 23%
P2O 5 is forecast for a period of 3 years.
Stage 2: Installation of a mid-sized beneficiation plant of A$304M to produce 550 ktpa phosphate-
rare earth mineral concentrate from the weathered resource for the phosphoric acid and rare-earth
concentrate market.
Stage 3: A$63M upgrade of the Stage 2 plant in year 13 to produce a concentrate from the un-
weathered, fresh, rock below c.130 m RL. Stage 3 should see further improvement and optionality in
post beneficiation upgrades due to mineralogy factors. A mine closure cost of A$41M has been
allocated at the end of Stage 3.
The project concept outlined in the Scoping Study comprises a Stage 1 direct shipping ore (DSO) open
pit mine and basic site infrastructure, including a crushing-screening plant and a road linking the mine
site to the Tanami Road, 40km north of Billiluna. This will be followed by Stage 2, which comprises
the installation of a flotation beneficiation facility at site to produce a rare earth and phosphate
mineral concentrate, and the expansion of non-process infrastructure (NPI).
This staged development approach has the benefits of initiating early cashflows, building confidence
with the regulators on environmental management, furthering community relationships and social
performance, providing greater mineral resource definition, allowing bulk samples for metallurgy and
piloting, and establishing a functioning supply chain; all of which substantially de-risk Stage 2 which
transitions the project into a rare-earth critical mineral mine.
All project stage products are proposed to be trucked along mostly sealed roads to Wyndham Port,
with the Tanami Road currently undergoing sealing. At Wyndham Port, which is powered by hydro
electricity from the Ord River hydro power station, the Company proposes to install a simple covered
stockpile storage area and to collaborate on using existing infrastructure and incumbent operators,
including the current KMG iron ore loading jetty and transhipping operators familiar with the port.
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Mineral Resource Update
In January 2024, following a successful drill campaign, the Company was pleased to announce an
updated Mineral Resource Estimate for the Cummins Range Project.
The 2023 drill program was focused on gaining further understanding of the metallurgical domains
and continuity of high-grade phosphate in the regolith. Drilling was also completed on the eastern
edge of the Resource, where pit designs required definition.
This drilling underpinned an updated Resource estimate totalling 524Mt at 0.31% TREO and 4.6%
P2O5, including a higher-grade TREO Resource of 44Mt at 1.02% TREO and 5.8% P2O5 based on a
6,500ppm TREO cut.
Cummins Range is a unique rare earths project due to its favourable phosphate mineralisation, which
makes peer comparison analysis difficult. The Project’s exposure to the two major sectors of the
green energy transition – rare earths for energy generation/use and phosphate for energy storage (by
way of LFP batteries) – means the deposit underpins a rare project opportunity with reduced
development and operational risk.
Table 1. Cummins Range Mineral Resource Estimate, P2O5 ≥2.5%
RARE DYKE
Classification
Tonnes
(Mt)
P2O5
(%)
TREO +
Y2O3 (ppm)
HREO
(ppm)
Nd2O3
(ppm)
Pr6O11
(ppm)
Nb2O5
(ppm)
Sc2O3
(ppm)
ThU
(ppm)
Indicated
44.4
6.0
5560
280
880
260
990
90
80
Inferred
363.7
43.9
2960
160
480
140
570
70
40
Total
408.2
4.1
3240
180
520
160
610
70
40
PHOS DYKE
Classification
Tonnes
(Mt)
P2O5
(%)
TREO +
Y2O3 (ppm)
HREO
(ppm)
Nd2O3
(ppm)
Pr6O11
(ppm)
Nb2O5
(ppm)
Sc2O3
(ppm)
ThU
(ppm)
Indicated
33.0
7.6
3430
290
670
170
500
80
100
Inferred
83.1
5.6
2390
200
460
120
450
60
60
Total
116.2
6.2
2690
230
520
140
460
70
70
COMBINED
Classification
Tonnes
(Mt)
P2O5
(%)
TREO +
Y2O3 (ppm)
HREO
(ppm)
Nd2O3
(ppm)
Pr6O11
(ppm)
Nb2O5
(ppm)
Sc2O3
(ppm)
ThU
(ppm)
Indicated
77.4
6.7
4650
280
790
230
780
90
90
Inferred
446.9
4.2
2860
170
480
140
550
70
40
Total
524.3
4.6
3120
190
520
150
580
70
50
Notes:
1. Due to effects of rounding, the total may not represent the sum of all components
2. TREO (ppm) includes: Light Rare Earth Oxides (LREO): La2O3, CeO2, Pr6O11, Nd2O3; and Heavy Rare Oxides (HREO): Sm2O3, Eu2O3, Gd2O3, Tb4O7, Dy2O3, Ho2O3,
Er2O3, Tm2O3, Yb2O3, Lu2O3; + Y2O3
3. ThU comprises ThO2 + U3O8 (ppm)
4. Mineral Resource is reported from all blocks, classified as either Indicated or Inferred, where interpolated block grade is >2.5% P2O5
A phosphate cut-off was chosen for the MRE as it better represents the geology and economic
potential of the deposit in that it captures the phosphate and almost all of the rare earths.
Substantial quantities of phosphate, now classified by the Australian Federal Government as a
Strategic Mineral, will be mined with the rare earth mineral and RareX intends to extract value from
both the phosphate and rare earths.
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During the 2023 field season, an improved geological model was created which defined several
domains within the regolith that will allow accurate mining study work to be completed for the
production of a rare earths phosphate concentrate (REPC), potentially preceded by monetised rock
phosphate direct shipping ore (DSO).
Metallurgical studies have shown lower-grade rare earths and phosphate are easily upgraded to a
high-grade REPC. The rare earths can then be extracted from the REPC at a phosphoric acid
production plant, potentially supplying the LFP (lithium ferro phosphate) battery supply chain.
Using this product approach allows RareX to extract the most value from the two commodities within
the large Cummins Range Resource.
Full details of the updated Mineral Resource Estimate were provided in the Company’s ASX
announcement dated 25 January 2024.
Rare Earths Metallurgical Testwork
Beneficiation testwork has returned promising results for the beneficiation of rare earths (RE) from
the Cummins Range Project. RareX has initiated a beneficiation program at Baotou Mengrong Fine
Materials (BTMR) in China to test RE beneficiation from both whole ore and the leach residue from
the phosphoric acid production. BTMR is a highly experienced Chinese research institute and is a
preeminent testing laboratory for rare earths beneficiation, particularly flotation.
Following the positive dilute acid leach and RE flotation results at BTMR, the next important step of
RareX’s metallurgical testwork program was to demonstrate good mineralogy of the leach residue to
support the Company’s proposed product strategy.
A Quantitative Evaluation of Materials by Scanning Electron Microscopy (QEMSCAN) analysis was
performed at ALS Metallurgy in late 2023 to better understand the mineralogy of the leach residue
and confirm favourable RE mineral distribution that will be used to support further RE beneficiation
testwork.
Results indicate that monazite is the main RE hosting mineral, accounting for approximately ~70% of
the total rare earth elements. Bastnasite (10%) and crandallite (20%) host the remaining RE. The RE
deportment is very well aligned to the mineralogy analysis on the head sample that was used for
generating this leach residue, suggesting that the RE minerals remained intact during the dilute
phosphoric acid leaching process.
Monazite locking and liberation analysis showed minimal locking of monazite with other minerals
post the dilute acid leach. Improved liberations were also observed, showing 64.4% ‘well liberated’ (at
-53µm grind size) monazite (i.e., >90% monazite) and another 20.5% classified as ‘high grade
middlings’ (60-90% monazite).
It was also noted that this leach residue is generated from the same head sample that was tested at
BTMR and achieved >20 times RE upgrade. This result is well aligned to RareX expectations and
further supports the proposed product processing strategy at the offtaker’s facility.
Bulk flotation of a 90kg sample was completed and generated ~18kg of dual mineral concentrate
samples. A 10kg sample of the concentrate was leached with dilute phosphoric acid to generate
product derivatives to better support off-take discussions.
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Phosphate Bulk Flotation Testwork
Following the positive 2022 sighter testwork results, a bulk flotation program was carried out to
assess if similar, or better, flotation performance can be achieved at larger scale with the same simple
flotation circuit. The bulk flotation using larger float cells is a good intermittent step to simulate pilot
testing and to assess if similar flotation kinetics can be achieved. The test was performed on the
same regolith composite that were tested in the sighter program and was undertaken at Auralia
Metallurgy in Perth.
Excellent results were achieved from the bulk flotation test producing a phosphate concentrate of
34.4% aligning to the sighter float performance. The bulk float P2O5 recovery of 91.1% was also
encouraging and was better that the sighter program. The flotation tests were not focused on
concentrating rare earths and the TREO head grade is relatively low for this composite, however, the
recovery trend of the rare earth showed high similarities, albeit slightly lower recoveries, to the
phosphate for this composite in line with expectations.
RareX sees the staged development of Cummins Range as a practical, fundable and lower risk
approach which plays to the strengths of the deposit where parts of the shallow orebody are more
enriched in phosphate relative to rare earths.
Flotation is the obvious initial beneficiation method at scale due to favourable lab results and the use
of the same facilities in the subsequent rare earths flotation, however this remains a relatively capital
intense approach. Therefore, a more targeted, microbe assisted, leaching of the phosphate with
Australian and US partners, already engaged, could enable much lower start-up costs and significantly
reduced logistics costs for mine gate products going to market.
Bench scale and comparative glasshouse trials indicate a clear economic benefit to farmers relying
on large quantities of synthetic fertilisers. Specifically, initial tests of the bio-microbial phosphate
product by our partners appear to compete very well in substitution of synthetic fertilisers in soils
similar to those in the Ord River region, one of RareX’s natural initial customer bases.
Completion of Baseline Environmental Surveys
RareX, with support from its environmental consultants, including MBS Environmental and Rapallo
Environmental, has completed the key environmental baseline work needed for meaningful
engagement with the environmental permitting agencies. The reports received cover environmental
aspects including:
•
Flora
•
Fauna
•
Subterranean Fauna
•
Ground and Surface Water
•
Soils and Landforms
•
Mine Rock Chemistry and Mineralogy
The reports provide a description of the above environmental factors, associated risks in the context
of a mining project being developed and proposed strategies to mitigate impacts to observed
environmental receptors.
No unusual or unexpected observations were made against initial desktop assessments and all
observed risk factors have precedent mitigation strategies applied in the industry.
9
The project is located well away (>10km) from any reserves or other key receptors and is nestled
amongst large regional landforms that extend well beyond the project area and as such provide plenty
of continuous habitat for existing species to use during and after mining operations.
Regional Exploration at Cummins Range
Aerial magnetics and ground gravity surveys were completed over 100%-owned tenements E80/5092
and E80/5372 at Cummins Range in September 2023. Both surveys identified numerous targets,
including a likely second ultramafic pipe in the northern portion of E80/5092.
Results from the surveys indicate two large well-defined ultramafic bodies to the north of the existing
Cummins Range deposit. The body immediately to the north of Cummins Range measures 4km long
and up to 1km wide. Geophysics has defined internal structures and irregularities in the body, which
may have been caused by intruding carbonatites similar to those within the Cummins Range pipe.
A second pipe-like circular ultramafic body measuring 1km in diameter has been defined 6km to the
north of the Cummins Range deposit. The magnetic and gravity responses over this intrusion also
show irregular responses similar to those seen at the Cummins Range pipe.
Figure 2:Total magnetics image on RareX tenements at Cummins Range.
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Figure 3: Ground Gravity image on RareX tenements at Cummins Range.
Offtake MOU
RareX has signed an offtake MOU with Nitron Group (Nitron), a US headquartered global fertiliser
trading and distribution company, for product from both initial stages of production from the
Cummins Range Project.
Cummins Range has the potential to monetise the mine’s pre-strip as a direct application, direct
shipping rock phosphate fertiliser, before the production of a beneficiated rare earth and phosphate
dual mineral concentrate. Following the distribution of product samples, Nitron formally expressed
interest in pre-strip material which has the potential to provide a low-cost, low-risk start up platform
for the main critical mineral rare earth and phosphate project at Cummins Range.
Through the MOU, Nitron also confirmed interest in up to 250ktpa of phosphate mineral concentrate
which RareX phosphate concentrate could produce from low-grade rare earths blocks within the
Cummins Range orebody.
Nitron is the world’s second largest distributor of fertilisers, with a dominant market position in Latin
America, and growing positions in North America, Europe, Africa and – importantly for RareX – in SE
Asia and New Zealand. Nitron traded more than $3 billion in revenue in 2021 and provides a wide
range of logistical and financial services to its clients. Nitron trades over 8 million metrics tons per
year of NPK fertiliser products throughout the globe.
Supply Chain Infrastructure Agreements
RareX has signed a term sheet with KMG Logistics Pty Ltd (KMG) to utilise the existing bulk loading
facility (BLF) at Wyndham Port. KMG, the owner of the BLF, has agreed to negotiate a long-form bulk
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loading facility agreement under which RareX would have access to at least 600ktpa of capacity at
the BLF for an initial 5-year term (subject to extension). The term sheet also grants RareX a binding
first right of refusal in the event of any proposed asset sale by KMG during this period. The BLF has
historically been used for loading transhipment barges which subsequently load an anchored
oceangoing vessel (OGV) approximately 500m from the BLF in deeper water in the centre of the
channel. Recent work by KMG has determined that Supramax OGVs (48,000 to 60,000 DWT) will be
able to load directly at the BLF. RareX is now using the operational learnings and practises of KMG to
define a complementary and efficient loading process which has no detrimental impact on KMG’s
operations.
RareX signed a call option deed with the owner of Lot 715, Barytes Road, Wyndham Port for 4 hectares
of land suitable for the storage and transfer of product from all stages of the Cummins Range Project.
The call option deed includes the agreed form of the contract of sale that the parties will enter into
should RareX elect to exercise its option to purchase the land. Under the call option deed, RareX has
the right to enter the property during the option period to conduct investigations pertaining to the civil
construction necessary for the design and installation of bulk handling and storage infrastructure.
RareX has partnered with Newhaul Pty Ltd for the purposes of providing product haulage and
logistical support for the Cummins Range Project. Newhaul is a logistics specialist with extensive
experience in providing haulage capability for resource projects. They bring exceptional indigenous
engagement, operational discipline, and data-driven haulage management experience to the project.
Additionally, they have a clear roadmap for the decarbonisation of their haulage fleet. The terms bind
Newhaul to immediately establish a special purpose vehicle (JV Co) to provide haulage services to
the Project and to provide an option for Cummins Range Company to enter into the JV by acquiring
50% of the shares in JV Co for $1 plus the value of the tangible assets of the JV Co minus the liabilities
(Option). The Option is exercisable subject to Cummins Range Company having entered into a
haulage agreement with JV Co and at least 500,000 tonnes of product from the Project having been
hauled by JV Co under the haulage agreement in any consecutive 12-month period. The Option
expires in 2030. The joint venture agreement outlines the corporate governance and operational
management details of the joint venture, once entered into by Cummins Range Company.
KHALEESI NIOBIUM PROJECT
In May 2024, RareX acquired the Khaleesi Niobium Project – a district-scale niobium-rare earth project
in the East Yilgarn, 290km east-northeast of Kalgoorlie in Western Australia. The acquisition supports
RareX’s goal of becoming a leading critical metals company with the future development of its 100%-
owned Cummins Range, carbonatite-hosted, Rare Earths and Phosphate Project and a strong focus
on continuing to discover major new carbonatite-hosted mineral deposits utilising internally-fostered
expertise.
The project acquisition comprised six tenements acquired unconditionally (one granted, five pending),
totalling 966km2, with RareX subsequently acquiring an additional 336km2 of potential alkaline
complexes to expand its landholding in this highly prospective region.
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Figure 4: Khaleesi Project location map showing significant Eastern Yilgarn Paleoproterozoic Alkaline Magmatism. The
northernmost tenement at Khaleesi Project E39/2504, is RareX’s recent 336km2 land acquisition.
The Khaleesi Project sits on the Northern Foreland unit of the Albany Fraser Belt and is a portion of
the Yilgarn Craton that was intruded by Paleoproterozoic magmatic rocks and reworked during the
Mesoproterozoic Albany–Fraser Orogeny. The tenements also contain the eastern boundary of the
Canning Basin with the Mulga Rocks East uranium and rare earths deposits abutting the tenement
boundary. The eastern margin of the Yilgarn Craton hosts significant alkaline intrusions particularly
along strike in the Queen Victoria Spring nature reserve 5km to the south. The nature reserve hosts
the largest carbonatite pipe in Australia, the 10km diameter Cundeelee carbonatite.
Also within the nature reserve is the strongly rare earth mineralised Ponton Dyke with intersections
up to 28m at 10% TREO, including 6m at 20.57% TREO. Although un-mineable due to the nature
reserve, these deposits show the highly metaliferous nature and prospectivity of the alkaline
intrusions of this area.
The Tropicana Gold Mine (AngloGold Ashanti 70%, Regis Resources 30%) is located 100km to the
northeast and sits along the same structural trend. Historically, Anglo Gold Ashanti, Fortescue and
IGO have explored the Khaleesi Project with a narrow focus on gold-nickel-copper, and crucially
completed a number of multi-element 4- Acid digest assays, including for elements niobium, yttrium
and europium. These assays have confirmed large areas (many square kilometres) of elevated
niobium in saprock and fresh rock up to 30 times the background values of 20ppm and over multiple
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locations. This suggests tremendous opportunities to discover significant niobium and rare earths
mineralisation across the holding.
Following completion of the acquisition, RareX commenced a review and interpretation of extensive,
detailed historical geophysical data from the Khaleesi Project, which delivered exciting target areas
including multiple gravity anomalies.
Compilation of AngloGold Ashanti and IGO magnetics and gravity data has been completed and
several areas have been identified for targeted exploration. The entirety of the Khaleesi Alkaline
Intrusion Complex (KAIC) has had aerial magnetics flown at 100m spacing, with the southern two-
thirds of the KAIC also having ground gravity at 400m x 400m spacing. These two detailed surveys
provide incredible detail over the KAIC before RareX has even put feet on the ground – and is the
result of several millions of dollars of Tier-1 exploration company groundwork.
The gravity data has provided additional support for the circular geometry of the complex, with the
bulk of the central area of the KAIC being a gravity low and the edges of the KAIC increasing in density.
These anomalies range in size from 1km to 4km and are positioned in a variety of geological settings
across the complex, including anomalies on the edges of sub-intrusions, on outer ring structures and
proximal to large faults and shear zones. Some of the gravity highs are coincident magnetic highs,
however a majority of the gravity highs are in magnetic low areas similar to WA1 Resources’ world-
class Luni niobium deposit in the West Arunta region.
Figure 5: Total magnetic image of Khaleesi Alkaline Intrusive Complex. Colouring is rainbow style, white and red areas are
gravity highs and purple areas are gravity lows. Aerial Magnetic survey over the entire project is at a 100m line spacing.
Initial exploration targets are shown in pink dashed circles.
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Figure 6: Gravity image of Khaleesi Alkaline Intrusive Complex. Colouring is rainbow style. White and red areas are gravity
highs and purple areas are gravity lows. Areas shown in high definition are 400m x 400m ground gravity grid. The blurred
areas are 500m (EW) x 2000m (NS) or 2.5km x 2.5km grid. Initial exploration targets are shown in pink dashed circles.
RareX is compiling data from over 65,000m of historical gold-focused air core drilling on the tenement
package Most of these drilled metres were only assayed for gold-related elements. RareX has located
and acquired approximately 10,000m of the drill chips and pulps from the project area which are being
assessed and sent for re-assay for target elements. The remaining drill chips and pulps have been
located and acquisition is underway. On completion, the drill database, geological and geochemical
data will be added to the geophysical surveys and a geological model formed to prioritise exploration
areas. Initial priority areas will be in the granted tenement E39/2409 which has emerged with the
highest proportion of priority targets so far.
Non-core Projects
RareXploration is the internal division of the Company which focusses on the non-core projects of
RareX.
Mt Mansbridge
Mt Mansbridge is one of the RareX portfolio projects which are being re-assessed and re-prioritised
following detailed data analysis and geological reinterpretation. Recent work has been on assessing
and prioritising the portfolio exploration assets which has resulted in Mt Mansbridge being escalated
in priority.
Mt Mansbridge Heavy Rare Earths (HRE) Project is located 40km from the Browns Range heavy rare
earths deposits 10.8Mt at 0.76% TREO with 88% HRE (Northern Minerals Ltd ASX announcement, 10
October 2022) in the Kimberley region of Northern Australia. A review of Mt Mansbridge has
15
confirmed the presence of hydrothermal xenotime (dysprosium-terbium mineral) mineralisation
within a larger HRE soils anomaly proximal to an unconformity, very similar to Browns Range.
The Project is centred around an isolated section of Paleoproterozoic Killi Killi Formation and has
previously been explored for uranium and gold by companies including Sigma Resources, Quantum
Resources and BHP. In recent times, rare earths exploration has been conducted by Red Mountain
Resources and briefly by Northern Minerals.
Figure 7: Mt Mansbridge local geology and tenure map showing all known heavy rare earth occurrences in the area.
At Mt Mansbridge, the Killi Killi Formation has an unconformity contact with the Pargee Sandstone to
the north and an unconformity contact with the Marraba Basin to the south. In the middle of the Killi
Killi Formation is Mt Mansbridge which is an island of Marraba Basin sitting unconformably on the
basement Killi Killi Formation. The classification of the Marraba Basin by GSWA is an area of
contention, as surrounding age dates suggest the basin is significantly older than Neoproterozoic and
more likely Mesoproterozoic.
In 1982, Sigma Resources discovered a clay alteration zone with xenotime quartz veins over 300m of
strike, 0.4km southwest of Mt Mansbridge. Seven pits were dug along the clay altered zone and
returned numerous elevated yttrium results with assay values up to 6% yttrium. Sigma confirmed the
mineralized trend corresponds with a broad surface uranium-yttrium anomaly and an aerial
electromagnetic (EM) anomaly. The aerial EM anomaly was confirmed by a ground electromagnetic
survey.
In 2021-22, Red Mountain drilled 6 RC holes along the strike of the outcropping horizon and the two
central holes intersected the heavy rare earths mineralization with 5m at 0.31% REO from 51m in hole
MMRC002. Hole MMRC007 was drilled down dip and slightly to the south of hole 2 and intersect a
broader mineralised zone of 16m at 0.28% TREO from 77m with a stronger mineralised zone of 4m at
0.48% TREO from 87m including 1m at 1.06%. The heavy rare earth content for this mineralised zone
is averaging 63%.
The drill intercepts from these two holes indicate the mineralised horizon has rotated from 305
degrees at surface, to a north south direction of 350 degrees at depth. This rotation provides some
16
evidence to explain why three of the drill holes MMRC001, MMRC003 and MMRC008 missed the
xenotime horizon.
Figure 8: Conceptual geological model for Mt Mansbridge Project. Mineralisation styles are based on the Wolverine
hydrothermal xenotime-quartz vein deposit and the Dazzler unconformity related HRE deposit at Browns Range.
Recent drilling from the partly government funded (Critical Mineral Development Program) drill
program on the Wolverine deposit at Browns Range has shown these structurally controlled HRE
hydrothermal veins extend to over 500m below surface and can thicken with depth. The HRE
hydrothermal veining at Sigma is poorly understood and structural modelling supported by surface
structural mapping, soil geochemistry and geophysics will lead to a more informed targeted drilling
campaign.
Soils geochemistry completed by Quantum in 2011 and Red Mountain in 2021 has confirmed and
produced substantial HRE anomalies, and has highlighted two sets of HRE anomalous structures in
the Killi Killi basement outcrops. The Sigma prospect structural trend at 310o-320o and a conjugate
set at 50o-70o. This hydrothermal systematics is very similar to the Browns Range mineralisation and
the most mineralised areas are at the junction of these structures.
The Sigma HRE prospect has a 700m strong HRE-Y-U geochemical signature, suggesting the HRE
mineralisation is open along strike. The geochemistry and radiometric readings indicated that, in
addition to the Sigma HRE occurrence, there are at least two other lode structures in the Killi Killi that
require follow up.
400m to the north of the Sigma HRE vein, at the base of Mt Mansbridge, is a 2km HRE-Y-U surface
geochemical anomaly that traverses the unconformity contact between Mt Mansbridge and the
basement Killi Killi Formation. The soils suggest there is anomalism coming from the base of Mt
Mansbridge sandstone and from the underlying Killi Killi Formation. This target will be a priority for
RareX to establish the origin of the HRE anomalism.
17
New South Wales Gold Projects
During the year, the Company sold its 35% asset level interests in the Trundle, Fairholme, Jemalong,
Cundumbul and Condobolin exploration licences in NSW to Kincora Copper Limited (Kincora), for a
consideration comprising 40 million Kincora Chess Depositary Interests (CDIs) and a 1% Net Smelter
Return Royalty (NSR).
Consolidating project ownership and removing the existing carried interests increases the strategic
value of the NSW project portfolio for all Kincora shareholders. The portfolio already attracts interest
from mid-tier and industry majors.
Red Dragon Project
The Red Dragon tenement, E39/2213, is being considered for its potential to host a large REE-NB
carbonatite or Ni-Cu-PGE magmatic intrusion.
Weld North
Following a review of the Company’s portfolio, the decision was made to relinquish the Weld North
tenements in March 2024.
Moroccan Cobalt Projects
No work was undertaken on the Moroccan projects during the reporting period. The Company is in
the process of finalising the divestment of these assets.
18
Directors’ Report
The Board of Directors has pleasure in presenting its report on the consolidated entity consisting of
RareX Limited (Company or RareX) and the entities (Group or Consolidated Entity) it controlled at the
end of, or during, the year ended 30 June 2024.
1.
Directors
The names and details of the Company’s Directors in office at any time during the year to 30 June
2024 and until the date of this report are as follows. Directors were in office for the entire period
unless otherwise stated.
Mr Jeremy Robinson
Non-Executive Chairman – Transitioned effective 3 April 2023 (previously Managing Director from 27
September 2019)
Mr Robinson is an experienced mining executive having held senior roles at multiple junior and mid-
tier mining and exploration companies. Mr Robinson holds a Bachelor of Commerce from the
University of Western Australia majoring in Corporate Finance, Investment Finance and Marketing.
ASX-listed directorships in last 3 years:
Executive Chairman, Cosmos Exploration Limited (from 22 March 2021)
Non-Executive Director, Kincora Copper Limited (from 31 July 2023)
Non-Executive Director, Ardiden Limited (from 21 August 2023)
Non-Executive Director, BBX Minerals Limited (from 25 August 2023)
Non-Executive Director, Commerce Resources Corp. (from 8 November 2023)
Interests held in the Company at date of this report:
29,287,816 shares
3,333,334 quoted options
Mr James Durrant
Managing Director & CEO – Transitioned effective 15 July 2024 (previously CEO)
Mr Durrant is the Managing Directors and Chief Executive Officer of RareX having been appointed CEO
in April 2023, and joining the board in July 2024. James is a mining and mechanical engineer with
over 17 years mining experience, half in large operating companies, and half in the mine startup space
across Africa and Australia. His original roles with BHP began as a graduate mining engineer and led
to senior leadership and operational positions including as Quarry Manager for some of BHP's large
iron ore mines. More recently his experience has extended through east and west Africa; developing
projects for Australian listed resource companies from late stage exploration, including the Colluli
Potash Project in Eritrea alongside fellow director Danny Goemann. James is a past elected director
of AAMEG, an industry peak body focused on representing Australian mining and energy companies
operating in Africa.
ASX-listed directorships in last 3 years:
Nil
19
Interests held in the Company at date of this report:
3,181,749 shares
4,000,000 performance rights
394,444 quoted options
Mr Danny Goeman
Non-Executive Director - Appointed 1 March 2023
Mr Goeman has over 20 years of marketing and sales experience including industry analysis, price
negotiation, market segmentation and product placement across multiple commodities and multiple
jurisdictions including Australia, Asia and Europe. He was previously the global director of sales &
marketing and shipping at Fortescue Metals Group for four years before becoming a senior advisor
to the chief executive in September 2022. Prior to FMG, he was head of marketing at international
potash development company, Danakali, where he developed the off-take strategy and off-take
contract frameworks and led the off-take negotiations on behalf of the Colluli Mining Share Company.
He became its chief executive from September 2017 to August 2018. Prior to Danakali, Mr Goeman
worked within Rio Tinto and held leading roles in commodity price negotiations, market analysis,
market segmentation and price forecasting.
ASX-listed directorships in last 3 years:
Nil
Interests held in the Company at date of this report:
555,556 shares
4,500,000 unquoted options
277,778 quoted options
Mr Shaun Hardcastle
Non-Executive Director – Appointed 1 December 2017
Mr Hardcastle has over 15 years’ experience as a corporate lawyer and extensive experience in
corporate governance, risk management and compliance. He has been involved in a broad range of
cross-border and domestic transactions including IPOs, capital raisings, joint ventures, corporate
restructuring, project finance and asset/equity sales and acquisitions. Mr Hardcastle has practiced
law both in Australia and overseas and is a partner at Hamilton Locke.
ASX-listed directorships in last 3 years:
Non-Executive Director, Cygnus Gold Limited (to 3 April 2023)
Interests held in the Company at date of this report:
3,219,935 shares
277,778 quoted options
Mr Cameron Henry
Non-Executive Director – Retired 14 July 2024
Mr Henry was the founding Managing Director of engineering firm, Primero Group, where he led the
Company’s strategic and operational direction resulting in its successful listing on the ASX in 2018
and rapid growth globally and its ultimate takeover by NRW Holdings in February 2021. Mr Henry has
20
over 20 years of industry experience in the development and delivery of minerals processing, energy
and infrastructure projects across Australia, Indonesia, North and South America.
ASX-listed directorships in last 3 years:
Managing Director, Green Technology Metals Limited (from 12 March 2021)
Interests held in the Company at date of this report:
10,445,889 shares
3,333,334 quoted options
Mr John Young
Non-Executive Director– Retired 14 July 2024
Mr Young has a Bachelor of Applied Science (Geology) and is a member of AusIMM. Mr Young is a
highly experienced geologist who has worked on exploration and production projects encompassing
gold, uranium and specialty metals, including tungsten, molybdenum, tantalum and lithium. Mr
Young’s corporate experience includes appointments as Chief Executive Officer of Marenica Energy
Limited and CEO and Director of Thor Mining PLC. Mr Young was Exploration Manager of Pilbara
Minerals Ltd before taking on the roles of Technical Director and then Non-Executive Director and has
also held the role of Managing Director of Bardoc Gold Limited.
ASX-listed directorships in last 3 years:
Executive Director, Trek Metals Ltd (from 2 September 2019)
Non-Executive Chairman, Green Technology Metals Limited (from 25 May 2021)
Non-Executive Director, Astute Metals NL (from 3 March 2023)
Non-Executive Director, Mosman Oil & Gas Ltd (AIM) (to 4 September 2023)
Non-Executive Director, Bardoc Gold Limited (to 13 April 2022)
Interests held in the Company at date of this report:
7,604,000 shares
633,334 quoted options
2.
Company Secretary
Ms Oonagh Malone – Appointed 1 February 2018
Ms Malone is a principal of a corporate advisory firm which provides company secretarial and
administrative services. Ms Malone has over 15 years’ experience in administrative and company
secretarial roles for listed companies and is a member of the Governance Institute of Australia. Ms
Malone currently acts as company secretary for ASX-listed Aston Minerals Limited, African Gold
Limited, Benz Mining Corp, Caprice Resources Limited, Carbine Resources Limited, Riversgold Ltd
and Firebird Metals Limited. Ms Malone is a non-executive director of Peak Minerals Ltd.
3.
Principal Activities
The principal activities during the year of the entities within the consolidated entity were mineral
exploration.
21
4.
Review of financial performance
The net consolidated loss from continuing operations for the year ended 30 June 2024, after income
tax, amounted to $3,281,702 (2023: $9,321,840).
During the year ended 30 June 2024, total expenses amounted to $6,558,837 (2023: $11,503,656).
Unrestricted cash and cash equivalents amounted to $1,895,899 as at 30 June 2024 (30 June 2023:
$4,310,622).
5.
Dividends
No dividend has been declared or paid by the Company since the end of the previous financial year
and the Directors do not at present recommend a dividend.
6.
Likely Developments and Expected Results
Other than as referred to in this report, further information as to likely developments in the operations
of the Company and likely results of those operations in future financial years would, in the opinion of
the Directors, be speculative.
7.
Significant Changes in the State of Affairs
There have been no significant changes in the state of affairs during the financial year ending 30 June
2024, other than as follows:
•
Disposal of 35% interest in NSW portfolio to Kincora Copper Limited for consideration of 40
million Kincora Chess Depository interests (CDIs) and a 1% Net Smelter Return Royalty.
•
Infrastructure share term sheet signed for bulk loading facility at Wyndham Poty with KMG
Logistics Pty Ltd.
•
Signed offtake memorandum of Understanding signed with Nitron Group for offtake Stage 1
and Stage 2 for production from Cummins Range Rare Earths & Phosphate Project.
•
Binding term sheet executed with Newhaul Pty Ltd for the formation of a joint venture
company to provide haulage services to the Cummins Range Project.
•
Acquisition of district-scale niobium “Khaleesi” project in East Yilgarn, WA for A$100k cash
and 9,816,406 ordinary shares. Additionally, A$1.5m self-brokered two tranche capital raise
for 107,142,857 shares at $0.014 per share.
8.
Significant Events After Balance Date
Subsequent to 30 June 2024, there have been no significant events with the exception of the below:
•
Mr James Durrant appointed to Managing Director from Chief Executive Officer from 15 July
2024, with Non-executive directors Mr John Young and Mr Cameron Henry retiring.
•
Successful negotiation of Land Access and Heritage Agreement between native title holders
and RareX for the Khaleesi Project tenements.
•
Cummins Range Development update which highlighted the undeveloped potential of the rare
earth project and significant phosphate deposit.
22
•
Mt Mansbridge, 100% owned RareX tenement uncovers significant rare earths potential close
to the Browns Range heavy rare earths deposits (10.8mT at 0.76% TREO).
•
RareX signed a site access agreement with AngloGold Ashanti in relation to the 100% owned
Khaleesi Project which is highly prospective for niobium and rare earths, aswell as gold and
base metals.
9.
Indemnity and Insurance for Group Officers and Auditor
To the extent permitted by law, the Company indemnifies every person who is or has been:
•
an Officer against any liability to any person (other than the Company or a related entity)
incurred while acting in that capacity and in good faith; and
•
an Officer or auditor of the Company, against costs and expenses incurred by that person in
that capacity in successfully defending legal proceedings and ancillary matters.
The Company has in respect of any person who is or has been a director or officer of the Company
paid a premium in respect of a contract insuring all directors and officers against a liability. The
Company maintains insurance policies for the benefit of the relevant director or officer for the term of
their appointment and for a period of seven years after retirement or resignation.
The Company has entered into a Deed of Indemnity, Access and Insurance with each of its Directors
and the Company Secretary. Under the Deeds of Indemnity, Access and Insurance the Company will
indemnify each officer to the extent permitted by the Corporations Act against any liability arising as
a result of the officer acting as an officer of the Company. The Deeds of Indemnity, Access and
Insurance also provide for the right to access Board papers and other Company records.
To the extent permitted by law, the Company has agreed to indemnify its auditor SW Audit, as part of
the terms of its audit engagement agreement against claims by third parties arising from the audit
(for an unspecified amount). No payment has been made to indemnify either SW Audit during, or
since the end of, the financial year.
10.
Remuneration Report – Audited
This report details the nature and amount of remuneration for each Director of RareX and the Group
and for the executives receiving the highest remuneration in accordance with the requirements of
Section 300A of the Corporations Act 2001 and its Regulations. The information provided in this
remuneration report has been audited as required by Section 308(3C) of the Act. This remuneration
report forms a part of the Directors’ Report.
For the purposes of this report, Key Management Personnel (KMP) of the Group are defined as those
persons having authority and responsibility for planning, directing and controlling the major activities
of the Company and the Group, directly or indirectly, including any director (whether executive or
otherwise) of the parent company.
Remuneration Policy
The remuneration policy of RareX has been designed to align director and executive objectives with
shareholder and business objectives by providing a fixed remuneration component and offering
specific long-term incentives. The Board of RareX believes the remuneration policy to be appropriate
and effective in its ability to attract and retain the best executives and directors to run and manage
the consolidated entity, as well as align interests of directors, executives and shareholders.
23
The Board believes that shares are an effective remuneration tool which preserves the cash reserves
of the Company whilst providing valuable remuneration. During the year ended 30 June 2024, nil
options (2023: 4.5m) and nil performance rights (2023: 10.5m) were issued to key management
personnel of the Company with respect to remuneration. The Company announced in July 2024 that
it will be seeking shareholder approval for 15 million options to Mr James Durrant and 6 million
options to each non-executive director. The options are exercisable at 150% of the 30 day VWAP of
RareX shares at the date of approval and expiring 3 years from issue.
The Board’s policy for determining the nature and amount of remuneration for board members and
senior executives of the consolidated entity is as follows:
•
The remuneration policy, setting the terms and conditions for the executive directors and other
senior executives, was developed and approved by the Board.
•
All executives receive a base salary (which is based on factors such as length of service and
experience).
•
The Board reviews executive packages annually by reference to the consolidated entity’s
performance, executive performance and comparable information from industry sectors.
All remuneration paid to directors and executives is valued at the cost to the Company and is
expensed over the appropriate vesting period. Shares issued under the Employee Share Plan are
valued using the Black Scholes methodology.
Non-Executive Directors
The Board policy is to remunerate non-executive directors at market rates for time, commitment and
responsibilities. The Board determines payments to the non-executive directors and reviews their
remuneration annually, based on market practice, duties and accountability. Independent external
advice is sought when required.
The maximum aggregate amount of fees that can be paid to non-executive directors is subject to
approval by shareholders at the Annual General Meeting. Currently there is a maximum aggregate
sum of $500,000 per annum, which is to be divided between the non-executive directors in the
proportions agreed between them or, failing agreement, equally.
Company performance, shareholder wealth and director and executive remuneration
Shares have been issued to directors and executives to encourage the alignment of personal and
shareholder interests in prior years. Options have been issued to directors to encourage the alignment
of personal and shareholder interests in the current year.
Executive and non-executive directors, other key management personnel and other senior employees
have been granted ordinary shares and options. The recipients of shares and options are responsible
for growing the Company and increasing shareholder value. If they achieve this goal the value of the
shares and options granted to them will also increase. Therefore, the shares and options provide an
incentive to the recipients to remain with the Company and to continue to work to enhance the
Company's value.
There is no policy in place which limits exposure to risk in relation to those securities in the Company
which constitute an element of directors’ remuneration and which are linked to satisfaction of
Company performance conditions.
24
The table below sets out summary information about the consolidated entity’s earnings and
movements in shareholder wealth for the five years to 30 June 2024:
30-Jun-24
30-Jun-23
30-Jun-22
30-Jun-21
30-Jun-20
Revenue
$3,277,135
$2,181,816
$3,252,390
$659,202
$2,642,553
Net loss before tax
($3,272,647)
($9,321,840)
($11,225,184)
($5,387,175)
($6,687,791)
Net loss after tax
($3,272,647)
($9,321,840)
($11,225,184)
($5,387,175)
($6,687,791)
Share price at end of
1.4 cents
3.6 cents
5.3 cents
7.2 cents
9.2 cents
Basic loss per share
(0.47 cents)
(1.54 cents)
(2.32 cents)
(1.33 cents)
(2.48 cents)
Diluted loss per share
(0.47 cents)
(1.54 cents)
(2.32 cents)
(1.33 cents)
(2.48 cents)
Note: No dividends have been declared or paid since the Company was listed.
Key Management Personnel Remuneration Policy
The remuneration structure for key management personnel, as determined by the Board, is based on
a number of factors, including length of service, particular experience of the individual concerned and
their role within the organisation.
25
Key Management Personnel Remuneration
Remuneration for the year ended 30 June 2024
Key
Management
Person
Short-term benefits
Long Term benefits
Post-
employment
benefits
Long term
incentives
Total
Salary or Fees
Paid or Payable
Consulting Fees
Non Monetary
Benefits
Long Service Leave
Superannuation
Share-based
payments
$
$
$
$
$
$
$
J Robinson
70,000
-
-
-
9,167
-
79,167
J Young2
48,563
-
-
-
-
-
48,563
S Hardcastle
48,122
-
-
-
-
-
48,122
C Henry2
43,412
-
-
-
5,684
-
49,096
D Goeman
50,000
-
-
-
6,417
-
56,417
J Durrant1
280,000
-
-
-
35,083
37,222
352,305
O Malone
60,00
-
-
-
-
-
60,000
600,096
-
-
-
56,350
37,222
693,668
1 Remuneration from appointment as Managing Director effective 15 July 2024.
2 Retired as Non-executive director effective 14 July 2024.
Remuneration for the year ended 30 June 2023
Key
Management
Person
Short-term benefits
Long Term benefits
Post-
employment
benefits
Long term
incentives
Total
Salary or Fees
Paid or Payable
Consulting Fees
Non Monetary
Benefits
Long Service Leave
Superannuation
Share-based
payments
$
$
$
$
$
$
$
J Robinson
285,628
4,500
1,571
-
25,292
256,828
573,819
J Young
61,250
-
-
-
-
77,032
138,282
S Hardcastle
54,996
-
-
-
-
77,032
132,028
C Henry
49,774
-
-
-
5,226
77,032
132,032
D Goeman
16,667
-
-
-
1,750
128,700
147,117
J Durrant1
263,750
-
-
-
25,771
354,728
644,249
O Malone
51,000
-
-
-
-
18,409
69,409
783,065
4,500
1,571
-
58,039
989,761
1,836,936
26
Options
4,500,000 unquoted options are held by Mr Danny Goeman as part of his remuneration issued in the
previous financial year as per the table below. The Director Options were granted for nil consideration
and vested immediately. There were no performance conditions for these options.
During the financial year, an additional 4,916,668 free attaching quoted options with an exercise price
of $0.0675 and expiry of 26 May 2025 were issued to KMPs who participated in the equity raise.
Performance Rights
Performance rights on issue to KMP are set out below. Nil performance rights were issued as part of
KMP remuneration during the year ended 30 June 2024 (2023: 10,500,000). During the financial year,
34,500,000 performance rights relating to KMPs had lapsed.
Director
Class
Grant date
No. of
performance
rights
Fair value per
performance
right
($)
Total fair value
of
performance
rights issued
($)
James
Durrant
E
10/02/2023
2,000,000
0.060000
120,000
F
10/02/2023
2,000,000
0.060000
120,000
4,000,000
240,000
Total
4,000,000
240,000
1 Performance rights are expensed on a straight-line basis over the vesting period.
The Board considers that the performance rights are a cost effective and efficient reward for the
Company to make to appropriately incentivise the continued performance of the management and
are consistent with the strategic goals and targets of the Company.
Director Options
Underlying value of the security
$0.054
Exercise price
$0.10
Valuation date
27/02/2023
Expiry date
1/03/2026
Life of Options in years
3
Volatility
102.88%
Risk free rate
3.51%
Number of Options
4,500,000
Valuation per Option
$0.0286
Valuation
$128,700
27
During the financial year, 2,000,000 performance rights issued to KMP vested and converted (2023:
nil) with respect to the following performance conditions:
Class
Vesting Condition
Number
D
1Mt contained TREO resource at Cummins Range and 24 months service.
2,000,000
At 30 June 2024, the performance rights held by KMP that vest on meeting the following performance
conditions before the expiry date are:
Class
Vesting Condition
Number
E
Granting of Mining Licence at Cummins Range and 24 months service.
2,000,000
F
Positive PFS for Cummins Range and 24 months service.
2,000,000
The movement during the reporting period in the number of ordinary shares of RareX held directly,
indirectly or beneficially by KMP including their personally related entities is as follows:
Shares – 30 June 2024
KMP
Held at 1 July
2023
Acquired
Disposed
Other
Held at 30 June
2024
D Goeman
-
555,556
-
-
555,556
S Hardcastle
2,664,379
555,556
-
-
3,219,935
C Henry1
3,779,222
6,666,667
-
-
10,445,889
J Robinson1
22,621,149
6,666,667
-
-
29,287,816
J Young
6,337,333
1,266,667
-
-
7,604,000
J Durrant
-
3,181,749
-
-
3,181,749
O Malone
580,588
-
-
-
580,588
35,982,671
18,892,862
-
-
54,875,533
1 Mr Jeremy Robinson and Mr Cameron Henry both have a beneficial interest in Churchill Strategic Investments which participated in an
equity raise during the year.
Shares – 30 June 2023
KMP
Held at 1 July
2022 or at date
of appointment
as KMP
Acquired
Disposed
Other
Held at 30 June
2023
D Goeman
-
-
-
-
-
S Hardcastle
2,664,379
-
-
-
2,664,379
C Henry
3,779,222
-
-
-
3,779,222
J Robinson
13,161,111
9,460,038
-
-
22,621,149
J Young
6,337,333
-
-
-
6,337,333
J Durrant
-
-
-
-
-
O Malone
580,588
-
-
-
580,588
26,522,633
9,460,038
-
-
35,982,671
28
The movement during the reporting period in the number of unquoted options over ordinary shares of
RareX held directly, indirectly or beneficially by KMP including their personally related entities is as
follows:
Unquoted Options – 30 June 2024
KMP
Held at 1 July
2023
Additions
Exercised
Expired/
Forfeited/
Other
Held at 30 June
2024
D Goeman
4,500,000
-
-
-
4,500,000
S Hardcastle
-
-
-
-
-
C Henry
-
-
-
-
-
J Robinson
-
-
-
-
-
J Young
-
-
-
-
-
J Durrant
-
-
-
-
-
O Malone
-
-
-
-
-
4,500,000
-
-
-
4,500,000
Unquoted Options – 30 June 2023
KMP
Held at 1 July
2022 or at date
of appointment
as KMP
Additions
Exercised
Expired/
Forfeited/
Other
Held at 30 June
2023
D Goeman
-
4,500,000
-
-
4,500,000
S Hardcastle
3,000,000
-
-
(3,000,000)
-
C Henry
6,000,000
-
-
(6,000,000)
-
J Robinson
15,000,000
-
(15,000,000)
-
-
J Young
6,000,000
-
-
(6,000,000)
-
J Durrant
-
-
-
-
-
O Malone
-
-
-
-
-
30,000,000
4,500,000
(15,000,000)
(15,000,000)
4,500,000
The movement during the reporting period in the number of performance rights of RareX held directly,
indirectly or beneficially by KMP and their personally related entities is as follows:
Performance Rights – 30 June 2024
KMP
Held at 1
July 2023
Granted
Converted
Expired/
Forfeited/
Other
Held at 30
June 2024
Vested at 30
June 2024
D Goeman
-
-
-
-
-
-
S Hardcastle
4,500,000
-
-
(4,500,000)
-
-
C Henry
4,500,000
-
-
(4,500,000)
-
-
J Robinson
15,000,000
-
-
(15,000,000)
-
-
J Young
4,500,000
-
-
(4,500,000)
-
-
J Durrant
10,500,000
-
(2,000,000)
(4,500,000)
4,000,000
-
O Malone
1,500,000
-
-
(1,500,000)
-
-
40,500,000
-
(2,000,000)
(34,500,000)
4,000,000
-
29
Performance Rights – 30 June 2023
KMP
Held at 1
July 2022 or
at date of
appointment
as KMP
Granted
Converted
Expired/
Forfeited/
Other
Held at 30
June 2023
Vested at 30
June 2023
D Goeman
-
-
-
-
-
-
S Hardcastle
4,500,000
-
-
4,500,000
-
C Henry
4,500,000
-
-
-
4,500,000
-
J Robinson
15,000,000
-
-
-
15,000,000
-
J Young
4,500,000
-
-
-
4,500,000
-
J Durrant
-
10,500,000
-
-
10,500,000
-
O Malone
1,500,000
-
-
-
1,500,000
-
30,000,000
10,500,000
-
-
40,500,000
-
Details of share-based payments in existence during the year ended 30 June 2024 are disclosed in
this Directors’ Report and Notes 19 and 26 to the Annual Financial Statements.
Contracts with Directors and Key Management Personnel
A summary of contracts entered into with Executives is set out below:
Executive
James Durrant
Role
Managing Director
Effective
15 July 2024
Term of Agreement
Ongoing until terminated in accordance with the
agreement
Base salary per annum excluding
any superannuation*
(Non-performance based)
$350,000
Termination Conditions
3 months notice by either party
Elements of remuneration related
to performance issued during the
year
• Subject to shareholder approval, 15 million options
exercisable at 150% of the 30 day VWAP of RareX shares at
the date of approval and expiring 3 years from the date of
issue.
[END OF REMUNERATION REPORT]
30
11.
Auditor Independence and Non-Audit Services
The Group’s current auditor, SW Audit, did not perform any services in addition to its statutory audit
services (2023: nil).
12.
Auditor’s Independence Declaration
The auditor’s independence declaration for the reporting period ended 30 June 2024 has been
received and can be found on page 31.
13.
Share Options
At the date of this report 54,500,030 options (2023: 71,500,030) to acquire ordinary shares in RareX
were on issue.
Type of Options
Expiry date
Exercise price
Number
Unquoted options
1/03/2026
$0.10
4,500,000
Quoted options
26/05/2025
$0.0675
50,000,030
Share-based payments and options issued to directors, consultants and eligible employees, are
disclosed in this Directors’ Report and Notes 19 and 26 to the Annual Financial Statement.
Option holders do not have any right, by virtue of the option, to participate in any share issue of the
Company or any related body corporate.
14.
Directors’ Meetings
The number of meetings of Directors (including meetings of committees of directors) held during the
year ended 30 June 2024 and the number of meetings attended by each director was as follows:
Director
Directors’ Meetings Eligible to
Attend
Directors’ Meetings Attended
D Goeman
4
4
S Hardcastle
4
4
C Henry
4
3
J Robinson
4
4
J Young
4
4
15.
Risk Management
The Company takes a proactive approach to risk management. The Board is responsible for ensuring
that risks, including emerging risks, and also opportunities, are identified on a timely basis and the
Company’s objectives and activities are aligned with the risks and opportunities identified by the
Board. The Board has a number of mechanisms in place to ensure that management’s objectives and
activities are aligned with the risks identified by the Board. The Company manages the risks listed
below, and other day-to-day risks through a number of risk controls and mitigants. Specific risk
controls and mitigants include but are not limited to:
•
Board risk oversight;
•
Implementation and adoption of Company policies and standards;
•
Insuring business activities and operations in accordance with industry practice; and
31
•
Engaging appropriate finance, accounting, and legal advisors.
The material risks specific to the Company’s operations include:
a) Access: in order to undertake mineral exploration on the Company’s tenements, the Company
has various access deeds in place and will seek to implement others in key areas of the
Company’s projects as and when it determines that activities should be undertaken.
b) Title risk: the Company’s tenement portfolio is governed by the Mining Act 1978 (WA), and
related subsidiary legislation, which requires annual expenditure and/or reporting
commitments, as well as other conditions requiring compliance. In order to mitigate risks
associated with tenure, the Company designs exploration programs that will meet minimum
expenditure requirements and advance the development of the tenements in a timely manner.
c) Exploration and development risks: mineral exploration and development are high-risk
undertakings. There can be no assurance that exploration of acquired projects or any other
exploration properties that may be acquired in the future will result in the discovery of an
economic resource. Even if an apparently viable resource is identified, there is no guarantee
that it can be economically exploited.
d) Operating risk: the operations of the Company may be affected by various factors, including
failure to locate or identify mineral deposits, failure to achieve predicted grades in exploration
and mining, operational and technical difficulties encountered in mining; difficulties in
commissioning and operating plant and equipment, mechanical failure or plant breakdown,
unanticipated metallurgical problems which may affect extraction costs; adverse weather
conditions, industrial and environmental accidents, industrial disputes and unexpected
shortages or increases in the costs of consumables, spare parts, plant and equipment.
e) Commodity price volatility: the Company's ability to proceed with the development of its rare
earth, phosphate and niobium projects and benefit from any future mining operations will
depend on market factors, some of which may be beyond its control. It is anticipated that any
revenues derived from mining will primarily be derived from the sale of rare earths and
phosphate. Consequently, any future earnings are likely to be closely related to the price of
this commodity and the terms of any off-take agreements that the Company enters into.
f) The world market for rare earths is subject to many variables and may fluctuate markedly.
These variables include world demand, forward selling by producers and production cost
levels in major mineral-producing regions. Rare earth prices are also affected by
macroeconomic factors such as general global economic conditions and expectations
regarding inflation and interest rates, as well as geopolitics. These factors may have an
adverse effect on the Company's exploration, development and production activities, as well
as on its ability to fund those activities. The Company may undertake measures, where
deemed necessary by the Board to mitigate such risks.
g) Native title and Aboriginal heritage risks: the Native Title Act 1993 (Cth) recognises and
protects the rights and interests in Australia of Aboriginal and Torres Strait Islander people in
land and waters, according to their traditional laws and customs. There is significant
uncertainty associated with native title in Australia and this may impact on the Company's
operations and future plans by delaying, restricting or prohibiting access to tenements.
32
h) Environmental risk: the operations and proposed activities of the Company are subject to State
and Commonwealth laws and regulations concerning the environment. As with most
exploration projects and mining operations, the Company's activities are expected to have an
impact on the environment, particularly if advanced exploration or field development
proceeds. It is the Company's intention to conduct its activities to the highest standard of
environmental obligation, including compliance with all environmental laws.
i) Permits and approvals: certain mineral rights and interests to be held by the Company are
subject to the need for ongoing or new government approvals and permits. These
requirements, including work permits and environmental approvals, will change as RareX’s
activities develop. Delays in obtaining, or the inability to obtain, required authorisations may
significantly impact on the Company's operations. The Company’s capacity to undertake
future mining operations in its Tenement area will be affected by various factors such as:
i.
potential inability to obtain necessary consents and approvals to mine;
ii.
delay to obtaining necessary consents and approvals to mine;
iii.
increased costs in obtaining necessary consents and approvals to mine; and
iv.
limited ground available for mining due to access restrictions and limitations.
16.
Environmental Regulations and Performance
The Company is required to carry out the exploration and evaluation of its mining tenements in
accordance with various State Government Acts and Regulations.
In regard to environmental considerations, the Company is required to obtain approval from various
State regulatory authorities before any exploration requiring ground disturbance, is carried out. It is
normally a condition of such regulatory approval that any area of ground disturbed during the
Company’s activities is rehabilitated in accordance with various guidelines. There have been no
significant breaches of these guidelines.
This report is made in accordance with a resolution of the Directors.
Jeremy Robinson
Chairman
30 September 2024
Brisbane
Level 15
240 Queen Street
Brisbane QLD 4000
T + 61 7 3085 0888
Melbourne
Level 10
530 Collins Street
Melbourne VIC 3000
T + 61 3 8635 1800
Perth
Level 18
197 St Georges Terrace
Perth WA 6000
T + 61 8 6184 5980
Sydney
Level 7, Aurora Place
88 Phillip Street
Sydney NSW 2000
T + 61 2 8059 6800
SW Audit ABN 39 533 589 331. Liability limited by a scheme approved under Professional Standards
Legislation. SW Audit is an independent member of ShineWing International Limited.
sw-au.com
Take the lead
AUDITOR’S INDEPENDENCE DECLARATION UNDER SECTION 307C OF THE
CORPORATIONS ACT 2001 TO THE DIRECTORS OF RAREX LIMITED
As lead auditor, I declare that, to the best of my knowledge and belief, during the year ended 30 June
2024 there have been:
i. no contraventions of the auditor independence requirements as set out in the Corporations Act
2001 in relation to the audit, and
ii. no contraventions of any applicable code of professional conduct in relation to the audit.
SW Audit
Chartered Accountants
Richard Gregson
Partner
Perth, 30 September 2024
34
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2024
Consolidated
2024
2023
Notes
$
$
Income
Other income
4(a)
2,077,135
2,181,816
Profit from sale of tenements
5
1,200,000
-
Total income
3,277,135
2,181,816
Expenses
Administration expenses
(754,689)
(1,246,994)
Consultants and management expenses
7(a)
(1,462,527)
(1,304,288)
Depreciation and amortisation
7(b)
(125,457)
(136,754)
Financial costs
(9,392)
(17,576)
Legal expenses
(212,987)
(64,097)
Share-based payment expense
26
(220,552)
(1,569,668)
Exploration expenses
6
(3,312,025)
(6,893,499)
Foreign exchange gain/(loss)
1,223
893
Fair value increase/(decrease) in financial
assets
4(b)
95,138
289,799
Share of loss from associate
13
(557,569)
(561,472)
Total expenses
(6,558,837)
(11,503,656)
Loss before income tax
(3,281,702)
(9,321,840)
Income tax expense
8
-
-
Loss attributable to the owners of RareX
Limited
(3,281,702)
(9,321,840)
Other comprehensive loss
-
Foreign currency translation reserve
9,055
(1,004)
Total comprehensive loss attributable to
owners of the parent
(3,272,647)
(9,322,844)
Loss per share
- basic and diluted
9
(0.47) cents
(1.54) cents
The accompanying notes form part of these financial statements.
35
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
FOR THE YEAR ENDED 30 JUNE 2024
Consolidated
2024
2023
Notes
$
$
ASSETS
Current Assets
Cash and cash equivalents
10
1,895,899
4,310,622
Other financial assets - term deposits
10
40,000
-
Trade and other receivables
11
213,536
474,737
Total Current Assets
2,149,435
4,785,359
Non-current Assets
Financial assets at fair value
12
2,699,769
1,404,631
Investment in associate
13
412,353
969,922
Plant and equipment
14
209,481
282,975
Right of use asset
15
9,562
216,574
Total Non-current Assets
3,331,165
2,874,102
TOTAL ASSETS
5,480,600
7,659,461
LIABILITIES
Current Liabilities
Trade and other payables
16
915,128
1,805,816
Provisions
83,519
97,321
Lease liability
17
9,426
91,532
Total Current Liabilities
1,008,073
1,994,669
Non-current Liabilities
Lease liability
17
-
148,589
Total Non-current Liabilities
-
148,589
TOTAL LIABILITIES
1,008,073
2,143,258
NET ASSETS
4,472,527
5,516,203
EQUITY
Contributed equity
18
51,987,481
49,739,062
Reserves
19
9,813,688
9,824,081
Accumulated losses
(57,328,642)
(54,046,940)
TOTAL EQUITY
4,472,527
5,516,203
The accompanying notes form part of these financial statements.
36
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2024
Notes
Contributed
equity
Options
reserve
Share- based
payment
reserve
Foreign
currency
translation
reserve
Accumulated
losses
Total
equity
$
$
$
$
$
$
At 1 July 2023
49,739,062
5,874,212
3,954,370
(4,501)
(54,046,940)
5,516,203
Currency translation differences
-
-
-
9,055
-
9,055
Total comprehensive (loss) for the year, net of
tax
-
-
-
-
(3,281,702)
(3,281,702)
Issue of share capital – cash
18
1,849,005
-
-
-
-
1,849,005
Transaction costs on share issues
18
(27,097)
-
-
-
-
(27,097)
Share-based payment expense
26
-
-
220,552
-
-
220,552
Conversion of performance rights
18
240,000
-
(240,000)
-
-
-
Issue of shares for acquisition of Khaleesi
18
186,511
186,511
At 30 June 2024
51,987,481
5,874,212
3,934,922
4,554
(57,328,642)
4,472,527
At 1 July 2022
45,715,177
6,163,712
2,414,702
(3,497)
(44,725,100)
9,564,994
Currency translation differences
-
-
-
(1,004)
-
(1,004)
Total comprehensive (loss) for the year, net of
tax
-
-
-
-
(9,321,840)
(9,321,840)
Issue of share capital – cash
18
4,000,000
-
-
-
-
4,000,000
Transaction costs on share issues
18
(295,615)
-
-
-
-
(295,615)
Share-based payment expense
26
-
-
1,569,668
-
-
1,569,668
Exercise of Options
18
289,500
(289,500)
-
-
-
-
Shares issued on exercise of options
18
30,000
-
(30,000)
-
-
-
At 30 June 2023
49,739,062
5,874,212
3,954,370
(4,501)
(54,046,940)
5,516,203
The accompanying notes form part of these financial statements.
37
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2024
Consolidated
2024
2023
Notes
$
$
CASH FLOWS USED IN OPERATING ACTIVITIES
Payments to suppliers and employees
(6,278,544)
(9,551,013)
Interest received
56,907
9,174
Interest paid
(7,300)
(17,575)
Proceeds from research and development tax
incentives
1,976,898
2,141,754
Other income
71,645
30,888
NET CASH FLOWS USED IN OPERATING ACTIVITIES
20
(4,180,094)
(7,386,772)
CASH FLOWS (USED IN)/FROM INVESTING
ACTIVITIES
Payments for property, plant and equipment
(1,011)
(191,475)
Payments for acquisition of tenements
-
-
Refund/(payment) of security deposits
-
(20,000)
Cash disposed on loss of control of subsidiary
-
-
NET CASH FLOWS USED IN INVESTING ACTIVITIES
(1,011)
(211,475)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from share issue
18
1,849,005
4,039,500
Proceeds from exercise of options
-
-
Share issue transaction costs
18
(27,097)
(295,615)
Payment of finance lease liability
(57,966)
(83,012)
Share application funds
(14,500)
15,000
NET CASH FLOWS FROM FINANCING ACTIVITIES
1,749,442
3,675,873
NET (DECREASE)/INCREASE IN CASH AND CASH
EQUIVALENTS
(2,431,663)
(3,922,374)
Cash and cash equivalents at beginning of year
4,310,622
8,232,977
Effect of movement in exchange rate
16,940
19
CASH AND CASH EQUIVALENTS AT END OF YEAR
1,895,899
4,310,622
Add: Term Deposit
40,000
-
CASH AND CASH EQUIVALENTS AT END OF YEAR
10
1,935,899
-
The accompanying notes form part of these financial statements.
38
Notes to and forming part of the Consolidated Financial Statements
1.
CORPORATE INFORMATION
The financial statements of RareX Limited (the Company or the Group) for the year ended 30 June
2024 were recognised for issue in accordance with a resolution of the Directors. RareX Limited is a
for profit entity. RareX Limited (the parent) is a company limited by shares, incorporated in Australia,
and whose shares are publicly traded on the Australian Securities Exchange. The nature of the
operations and principal activities of the consolidated entity are described in the Directors’ Report.
2.
SUMMARY OF MATERIAL ACCOUNTING POLICIES
The principal accounting policies adopted in the preparation of the financial statements are set out
below. These policies have been consistently applied to all the years presented, unless otherwise
stated. The financial statements include separate financial statements for RareX Limited as an
individual entity and the consolidated entity consisting of RareX Limited and its controlled entities.
(a)
Basis of preparation
These general purpose financial statements have been prepared in accordance with the requirements
of the Corporations Act 2001, Australian Accounting Standards and other authoritative
pronouncements of the Australian Accounting Standards Board. These financial statements have
also been prepared on a historical cost basis, except for financial assets which have been measured
at fair value. These financial statements are presented in Australian dollars.
Australian Accounting Standards set out accounting policies that the Australian Accounting
Standards Board has concluded would result in financial statements containing relevant and reliable
information about transactions, events and conditions. Compliance with Australian Accounting
Standards ensures that the financial statements and notes also comply with International Financial
Reporting Standards. Material accounting policies adopted in the preparation of the consolidated
financial statements are presented below and have been consistently applied unless stated
otherwise.
Going concern
As at 30 June 2024, the Group had net current assets of $1,141,362 (2023: $2,790,690) and returned
a loss attributable to owners of $3,272,647 (2023: $9,322,544). The cash balance at 30 June 2024
was $1,895,899 (2023: $4,310,622) and net current assets of $2,149,435 (2023: $4,785,737). The
ability of the Group to continue as a going concern is dependent upon the future successful raising
of the necessary funding through equity and/or debt and the successful exploitation of the Group’s
tenements.
These factors indicate a material uncertainty which may cast significant doubt as to whether the
Group will continue as a going concern and therefore whether it will realise its assets and extinguish
its liabilities in the normal course of business and at the amounts stated in the financial report.
The Directors believe that there are reasonable grounds that the Group will be able to continue as a
going concern, after consideration of the following factors:
▪
The Group’s ability to issue additional shares under the Corporations Act 2001 to raise further
working capital;
39
▪
The Group's ability to dispose some or all of listed securities (Kincora Copper Ltd, Canada Rare
Earth Corp and Cosmos Limited) as deemed necessary;
▪
The Group’s ability to reduce working capital requirements at the Board’s discretion.
These financial statements have been prepared on the basis that the Group can meet its
commitments as and when they fall due and can therefore continue normal business activities and
the recognised of its assets and settlement of its liabilities can occur in the ordinary course of
business.
However, the conditions outlined above indicate the existence of a material uncertainty which may
cast significant doubt on the Group’s ability to continue as a going concern and to be able to pay its
debts as when and they fall due, and therefore the Group may be unable to realise its assets and
extinguish its liabilities in the normal course of business and at the amounts stated in the financial
report.
(b)
Statement of Compliance
These financial statements comply with Australian Accounting Standards and International Financial
Reporting Standards (IFRS) as issued by the International Accounting Standards Board.
These financial statements are general purpose financial statements which have been prepared in
accordance with the Corporations Act 2001, Accounting Standards and Interpretations, and comply
with other requirements of the law.
(c)
New accounting standards and interpretations
AASB 2021-2: Amendments to Australian Accounting Standards – Disclosure of Accounting Policies
and Definition of Accounting Estimates
The Group adopted AASB 2021-2 which amends AASB 7, AASB 101, AASB 108 and AASB 134 to
require disclosure of “material accounting policy information” rather than significant accounting
policies in an entity’s financial statements. It also updates AASB Practice Statement 2 to provide
guidance on the application of the concept of materiality to accounting policy disclosures.
The adoption of the amendment did not have a material impact on the financial statements.
New accounting Standards issued but not yet effective
A number of new standards, amendments to standards and interpretations issued by the AASB which
are not yet mandatorily applicable to the Company have not been applied in preparing these
consolidated financial statements. The Company has not elected to adopt any new Accounting
Standards or Interpretations prior to their applicable date of implementation.
There are no standards that are not yet effective and that would be expected to have a material impact
on the Company in the current or future reporting periods and on foreseeable future transactions.
(d)
Basis of consolidation
The consolidated financial statements comprise the financial statements of the Group and its
subsidiaries as at 30 June 2024. Control is achieved when the Group is exposed, or has rights, to
40
variable returns from its involvement with the investee and has the ability to affect those returns
through its power over the investee.
Consolidation of a subsidiary begins when the Group obtains control over the subsidiary and ceases
when the Group loses control of the subsidiary. Assets, liabilities, income and expenses of a
subsidiary acquired or disposed of during the year are included in the statement of comprehensive
income from the date the Group gains control until the date the Group ceases to control the subsidiary.
Profit or loss and each component of other comprehensive income (OCI) are attributed to the equity
holders of the parent of the Group and to the non-controlling interests, even if this results in the non-
controlling interests having a deficit balance. When necessary, adjustments are made to the financial
statements of subsidiaries to bring their accounting policies into line with the Group’s accounting
policies. All intra-group assets and liabilities, equity, income, expenses and cash flows relating to
transactions between members of the Group are eliminated in full on consolidation.
A change in the ownership interest of a subsidiary, without a loss of control, is accounted for as an
equity transaction.
(e)
Investment in joint operations
A joint operation is a type of joint arrangement whereby the parties that have joint control of the
arrangement have rights to the assets, and obligations for the liabilities, relating to the arrangement.
Joint control is the contractually agreed sharing of control of an arrangement, which exists only when
decisions about the relevant activities require unanimous consent of the parties sharing control. The
considerations made in determining significant influence or joint control are similar to those
necessary to determine control over subsidiaries. The Group accounts for the assets, liabilities,
revenues and expenses relating to its interest in a joint operation in accordance with the IFRSs
applicable to the particular assets, liabilities, revenues and expenses.
The Group can elect to contribute to ongoing exploration costs in proportion to its interests or dilute
(a farm-out arrangement). If contributions are made during the reporting period, they are accounted
for as exploration expenditure. Once the joint arrangement partner had earned its interest, the
Company recovers expenditure equivalent to the other joint arrangement partner’s interest.
The Group does not record any expenditure made by the farminee on its account. It also does not
recognise any gain or loss on its exploration and evaluation farm-out arrangements. Any cash
consideration received directly from the farminee is credited against costs previously incurred in
relation to the whole interest.
When the Group, acting as an operator, receives reimbursement of direct costs recharged to the joint
operation, such recharges represent reimbursements of costs that the operator incurred as an agent
for the joint operation and therefore have no effect on profit or loss.
In many cases, the Group also incurs certain general overhead expenses in carrying out activities on
behalf of operation. As these costs can often not be specifically identified, joint operation agreements
allow the operator to recover the general overhead expenses incurred by charging an overhead fee
that is based on a fixed percentage of the total costs incurred for the year, often in the form of a
management fee. Although the purpose of this recharge is very similar to the reimbursement of direct
41
costs, the Group is not acting as an agent in this case. Therefore, the general overhead expenses and
the overhead fee are recognised in profit or loss as an expense and income, respectively.
(f)
Business combinations
Business combinations are accounted for using the acquisition method. The consideration
transferred in a business combination shall be measured at fair value, which shall be calculated as
the sum of the acquisition date fair value of the assets transferred by the acquirer, the liabilities
incurred by the acquirer to former owners of the acquiree and the equity issued by the acquirer, and
the amount of any non-controlling interest in the acquiree. For each business combination, the
acquirer measures the non-controlling interest in the acquiree either at fair value or at the
proportionate share of the acquiree’s identifiable net assets. Acquisition related costs are expensed
as incurred.
When the Group acquires a business, it assesses the financial assets and liabilities assumed for
appropriate classification and designation in accordance with the contractual terms, economic
conditions, the Group’s operating or accounting policies and other pertinent conditions as at the
acquisition date. This includes the separation of embedded derivatives in host contracts by the
acquiree.
If the business combination is achieved in stages, the acquisition date fair value of the acquirer’s
previously held equity interest in the acquiree is remeasured at fair value as at the acquisition date
through profit or loss.
Any contingent consideration to be transferred by the acquirer will be recognised at fair value at the
acquisition date. Subsequent changes to the fair value of the contingent consideration which is
deemed to be an asset or liability will recognised in accordance with AASB 9 either in profit or loss or
in other comprehensive income. If the contingent consideration is classified as equity, it shall not be
remeasured.
(g)
Cash and cash equivalents
Cash and cash equivalents in the statement of financial position comprise cash at bank and short-
term deposits with an original maturity of not more than 3 months that are readily convertible to
known amounts of cash and which are subject to an insignificant risk of changes in value.
For the purposes of the Consolidated Statement of Cash Flows, cash and cash equivalents consist of
cash and cash equivalents as defined above. The consolidated entity does not have any bank
overdraft facilities.
Where the Company calls cash in advance from its joint venture partners, the cash recognised as an
asset with an offsetting liability for the amount of expenses not yet incurred on the relevant joint
venture project at balance date. The liability is then released to the profit and loss as the expenditure
is incurred.
(h)
Investments and other financial assets
Investments and financial assets in the scope of AASB 9 Financial Instruments are recognised as
either financial assets at fair value through profit and loss or amortised cost. The classification
depends on the purpose for which the investments were acquired. Designation is re-evaluated at each
financial year end, but there are restrictions on reclassifying to other categories.
42
When financial assets are recognised initially, they are measured at fair value, plus, in the case of
assets not at fair value through profit and loss, directly attributable transaction costs.
Financial assets at fair value through profit or loss
Financial assets not measured at amortised cost or at fair value through other comprehensive income
are classified as financial assets at fair value through profit or loss. Typically, such financial assets
will be either: (i) held for trading, where they are acquired for the purpose of selling in the short-term
with an intention of making a profit, or a derivative; or (ii) designated as such upon initial recognition
where permitted. Fair value movements are recognised in profit or loss.
(i)
Plant and Equipment
Plant and equipment is stated at historical cost less depreciation and any accumulated impairment
losses. Historical cost includes expenditure that is directly attributable to the acquisition of these
items.
Subsequent costs are included in the asset’s carrying amount recognised as a separate asset, as
appropriate, only when it is probable that future economic benefits associated with the item will flow
to the consolidated entity and the cost of the item can be measured reliably. All other repairs and
maintenance are charged to the statement of comprehensive income during the financial period in
which they are incurred.
Depreciation is calculated using the straight line and diminishing value methods to allocate the cost
of the specific assets over their estimated useful lives. The expected useful lives are detailed in Note
14
The assets’ residual values, useful lives and depreciation methods are reviewed, and adjusted if
appropriate, at each financial year end.
(i)
Impairment
The carrying values of plant and equipment are reviewed for impairment at each reporting date, with
the recoverable amount being estimated when events or changes in circumstances indicate that the
carrying value may be impaired.
The directors have determined that items of plant and equipment do not generate independent cash
inflows and that the business of the consolidated entity is, in its entirety, a cash-generating unit. The
recoverable amount of plant and equipment is thus determined to be its fair value less costs to sell.
An impairment exists when the carrying value of an asset or cash-generating unit exceeds its
estimated recoverable amount. The asset or cash-generating unit is then written down to its
recoverable amount. For plant and equipment, impairment losses are recognised in the statement of
comprehensive income as an expense.
(ii)
Derecognition and disposal
An item of plant and equipment recognised upon disposal or when no further future economic
benefits are expected from its use.
Gains and losses on disposals are determined by comparing proceeds with the carrying amount.
These are included in the statement of comprehensive income. When revalued assets are sold, it is
43
consolidated entity policy to transfer the amounts included in other reserves in respect of those
assets to retained earnings.
(i)
Long Service Leave
The liability for long service leave is recognised and measured as the present value of expected future
payments to be made in respect of services provided by employees up to the reporting date.
Consideration is given to expected future wage and salary levels, experience of employee departures,
and periods of service. Expected future payments are discounted using market yields at the reporting
date on corporate bonds with terms to maturity and currencies that match, as closely as possible, the
estimated future cash outflows.
(j)
Share-based payment transactions
Equity settled transactions
The consolidated entity provides benefits to its directors, employees and consultants in the form of
share-based payments, whereby directors and employees render services in exchange for options to
acquire shares, rights over shares (equity-settled transactions) and shares. The consolidated entity
has also issued ordinary shares and unlisted options as consideration to vendors for the acquisition
of exploration licenses and drilling services.
The cost of these equity-settled transactions is measured by reference to the fair value to the
Company of the equity instruments at the date at which they were granted in the case of options and
shares for directors, employees and consultants; and the closing share price on, or just before, either
the date of entering into, or executing, an exploration license purchase agreement in the case of
options and shares issued to tenement vendors as consideration for the settlement price. The fair
value of the unlisted options and shares issued under the Plan is determined using the Black-Scholes
model, taking into account the terms and conditions upon which the options were granted.
The cost of equity-settled transactions are recognised as an expense, together with a corresponding
increase in equity over the period in which the vesting and/or service conditions are fulfilled (the
vesting period), ending on the date on which the relevant directors and employees become fully
entitled to the options (the vesting date) or shares.
At each subsequent reporting date until vesting, the cumulative charge to the statement of
comprehensive income reflects:
(i)
the grant date fair value of the options and shares;
(ii)
the current best estimate of the number of options and shares that will ultimately vest,
taking into account such factors as the likelihood of employee turnover during the
vesting period and the likelihood of vesting conditions being met, based on best
available information at balance da
(iii)
the extent to which the vesting period has expired.
The charge to the statement of comprehensive income for the period is the cumulative amount as
calculated above less the amounts already charged in previous periods. There is a corresponding
entry to equity.
44
If the terms of an equity-settled award are modified, as a minimum an expense is recognised as if the
terms had not been modified. An additional expense is recognised for any modification that increases
the total fair value of the share-based payment arrangement, or is otherwise beneficial to the
employee, as measured at the date of modification.
If an equity-settled award is cancelled, it is treated as if it has vested on the date of cancellation, and
any expense not yet recognised for the award is recognised immediately. However, if a new award is
substituted for the cancelled award and designated as a replacement award on the date that it is
granted, the cancelled and new award are treated as if they were a modification of the original award,
as described in the previous paragraph.
The dilutive effect, if any, of outstanding options and shares is reflected as additional share dilution
in the computation of diluted earnings per share.
(k)
Revenue recognition
Revenue is recognised and measured at the fair value of the consideration received or receivable to
the extent it is probable that the economic benefits will flow to the consolidated entity and the revenue
can be reliably measured. The following specific recognition criteria must also be met before revenue
is recognised:
(i)
Interest revenue
Revenue is recognised as interest accrued using the effective interest method. This is a method of
calculating the amortised costs of a financial asset and allocating the interest revenue over the
relevant period using the effective interest rate, which is the rate that exactly discounts estimated
future cash receipts through the expected life of the financial asset to the net carrying amount of the
financial asset.
(ii)
Research and development
Research and development tax offset income compensates the Group for expenses incurred and is
recognised in profit or loss as other income in the period for which the research and development
grant application is lodged.
All revenue is stated net of Goods and Services Tax (GST).
(l)
Income tax and other taxes
Current tax assets and liabilities for the current and prior periods are measured at the amount
expected to be recovered from or paid to the taxation authorities based on the current period’s taxable
income. The tax rates and tax laws used to compute the amount are those that are enacted or
substantively enacted by the reporting date.
Deferred income tax is provided on all temporary differences at the reporting date between the tax
bases of assets, liabilities and their carrying amounts for financial statements purposes.
Deferred income tax are recognised for all deductible temporary differences, carry-forward of unused
tax credits and unused tax losses, to the extent that it is probable that taxable profit will be available
against which the deductible temporary differences and the carry-forward of unused tax credits and
unused tax loss can be utilised.
45
Deferred income tax assets and liabilities are measured at the tax rates that are expected to apply to
the year when the asset is realised or the liability is settled, based on tax rates (and tax laws) that
have been enacted or substantively enacted at the reporting date.
Unrecognised deferred income tax assets are reassessed at each reporting date and are recognised
to the extent that it has become probable that future taxable profit will allow the deferred tax asset to
be recovered.
Tax consolidation legislation
RareX Limited and its wholly-owned Australian controlled entity formed a tax consolidated group on
1 July 2008. However, they continue to account for their own current and deferred tax amounts. The
consolidated entity has applied the stand alone taxpayer approach in determining the appropriate
amount of current taxes and deferred taxes to allocate to members of the tax consolidated group.
The current and deferred tax amounts are measured in a systematic manner that is consistent with
the broad principles in AASB 112 Income Taxes.
In addition to its own current and deferred tax amounts, RareX also recognises the current tax
liabilities (or assets) and the deferred tax assets arising from unused tax losses and unused tax
credits assumed from controlled entities in the tax consolidated group.
Members of the tax consolidated group have not entered into a tax funding agreement and as no
current tax assets or liabilities or deferred tax assets are recognised in relation to tax losses or unused
tax credits, no contributions or distributions are required to be made under AASB Int 1052 Tax
Consolidation Accounting.
Other taxes
Revenues, expenses and assets are recognised net of the amount of GST except:
•
when the GST incurred on a purchase of goods and services is not recoverable from the
taxation authority, in which case the GST is recognised as part of the cost of acquisition of the
asset or as part of the expense item as applicable; and
•
receivables and payables, which are stated with the amount of GST included.
The net amount of GST recoverable from, or payable to, the taxation authority is included as part of
receivables or payables in the statement of financial position.
Cash flows are included in the Statement of Cash Flows on a gross basis and the GST component of
cash flows arising from investing and financing activities, which is recoverable from, or payable to,
the taxation authority is classified as part of operating cash flows.
Commitments and contingencies are disclosed net of the amount of GST recoverable from, or payable
to the taxation authority.
(m)
Exploration Expenditure
Exploration and evaluation costs are accumulated and accounted for separately on an area of interest
basis. An area of interest is represented by an exploration project, which may include multiple
tenements within a single geographic region.
46
For each area of interest, the Company makes an election regarding its treatment of exploration and
evaluation expenditure (including the costs of tenement acquisitions) and whether it will be charged
to the income statement as incurred, under the expense category “exploration expenditure” (or other
appropriate expense category), or capitalised as an exploration and evaluation asset, or a
combination thereof.
An exploration and evaluation asset shall only be recognised in relation to an area of interest if the
following conditions are satisfied:
(i)
the rights to tenure of the area of interest are current; and
(ii)
at least one of the following conditions is also met:
a)
the exploration and evaluation expenditures are expected to be recouped
through successful development and exploitation of the area of interest, or
alternatively, by its sale; and
b)
exploration and evaluation activities in the area of interest have not at the end
of the reporting period reached a stage which permits a reasonable
assessment of the existence or otherwise of economically recoverable
reserves, and active and significant operations in, or in relation to, the area of
interest are continuing.
Capitalised exploration and evaluation expenditures are recorded as an exploration asset at cost less
impairment charges. All capitalised exploration and evaluation expenditure are monitored for
indicators of impairment. Where an impairment indicator is identified, an assessment is performed
for each area of interest to which the exploration and evaluation expenditure is attributed. To the
extent that capitalised expenditure is not expected to be recovered it is charged to the income
statement.
(n)
Financial Liabilities and Equity Instruments Issued by the Consolidated Entity
Classification as debt or equity
Debt and equity instruments are classified as either financial liabilities or as equity in accordance with
the substance of the contractual agreement.
(o)
Investments in associates
An associate is an entity over which the Group is able to exercise significant influence. Significant
influence is the power to participate in the financial and operating policy decisions of the investee but
is not control or joint control of those policies.
The Group’s interests in associates are accounted for using the equity method after initially being
recognised at cost. Under the equity method, the Group’s share of the profits or losses of the
associate is recognised in the Group’s profit or loss and the Group’s share of other comprehensive
income items is recognised in the Group’s condensed consolidated statement of other
comprehensive income.
Unrealised gains and losses on transactions between the Group and an associate are eliminated to
the extent of the Group’s interest in the associate.
47
3.
CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS
The Directors evaluate estimates and judgements incorporated into the financial statements based
on historical knowledge and best available current information. Estimates assume a reasonable
expectation of future events and are based on current trends and economic data, obtained both
externally and within the Company.
Key estimates and judgements
(i)
Impairment – general
The Company assesses impairment at the end of each reporting period by evaluation of conditions
and events specific to the Company that may be indicative of impairment triggers. Recoverable
amounts of relevant assets are reassessed using value-in-use calculations, which incorporate various
key assumptions.
(ii)
Options and share-based payment transaction
The Consolidated Entity measures the cost of equity-settled transactions by reference to the fair value
of the equity instruments at the date at which they are granted. The fair value is determined using a
Black-Scholes or Monte Carlo model, using the assumptions and inputs detailed in Note 27.
(iii)
Tenement acquisition costs
The Directors have elected to expense certain tenement acquisition costs in relation to the Cummins
Range Rare Earths Project as disclosed in note 6.
(iv)
Investments in associates
The Directors have determined that the Consolidated Entity has significant influence over Cosmos,
taking into consideration both its shared Director and its current shareholding and voting power. On
this basis, the Group has accounted for Cosmos under the equity method and has included its share
of loss in the Group’s statement of other comprehensive income.
48
4.
INCOME
Consolidated
2024
2023
$
$
(a) Other Income
Interest received
56,907
9,174
Research and Development Grant
1,976,898
2,141,754
Rental income
-
30,888
Other income
43,330
-
2,077,135
2,181,816
(b) Fair value net increase/ (decrease) in financial assets
Shares in Kincora Copper Ltd (TSXV: KCC.V)
675,201
3,564
Shares in Canada Rare Earth Corp (TSXV: LL.V)
(580,063)
286,235
95,138
289,799
5.
PROFIT FROM SALE OF TENEMENTS
$
CDIs at fair value (40 million Kincora CDIs at $0.03)
1,200,000
On 31 July 2023, the Group announced it had agreed to sell its 35% interest in its NSW portfolio to its
JV partner, Kincora Copper Limited (Kincora) for a consideration of 40 million Kincora Chess
Depository Interests (CDIs) and a 1% Net Smelter Royalty.
As the Group had previously expensed its exploration expenditure on the tenements sold to Kincora
and had no capitalised exploration and expenditure asset for these tenements, the fair value of the
entire consideration received of 40 million Kincora CDIs has been brought to account as a profit from
the sale of this interest on the completion of the transaction.
6.
EXPLORATION EXPENSES
During the year, the Directors elected to expense the following costs in relation to the exploration
activities of the Group to the Consolidated Statement of Profit or Loss and Other Comprehensive
Income:
Consolidated
2024
2023
$
$
Balance at the beginning of the year
-
-
Exploration expenditure incurred
3,312,025
6,893,499
Exploration expenditure expensed
(3,312,025)
(6,893,499)
Balance at the end of the year
-
-
The Directors have elected to expense exploration expenditure for all areas of interest of the Group
(Note 2(v)).
49
7.
OTHER EXPENSES
Consolidated
2024
2023
$
$
(a) Consultants and management expense
Consultants
623,978
511,687
Directors’ fees - executive
-
61,250
Directors' fees – non-executive
253,200
141,726
Salary and on costs
1,337,598
1,362,134
Company secretarial fees
60,000
51,000
Less: Expenditure allocated to exploration and evaluation
(812,249)
(823,509)
1,462,527
1,304,288
(b) Depreciation and amortisation included in income statement
Depreciation of plant & equipment
26,501
27,067
Depreciation of motor vehicles
48,004
21,171
Depreciation of right of use assets
50,952
88,516
125,457
136,754
50
8.
INCOME TAX
Consolidated
2024
2023
$
$
(a) Income tax expense
The major components of income tax expense are:
Statement of profit or loss and other comprehensive income
Current income tax
Current income tax charge/(benefit)
-
-
Adjustments in respect of current income tax of previous years
-
-
Deferred income tax
-
-
Relating to origination and reversal of temporary differences
-
-
Income tax expense/(benefit) reported in statement of profit or
loss and other comprehensive income
-
-
(b) Numerical reconciliation of accounting profit to tax expense
A reconciliation between tax expense and the accounting profit
before income tax multiplied by the consolidated entity's applicable
income tax rate is as follows:
Accounting loss before income tax
(3,281,702)
(9,321,840)
At the consolidated entity's statutory income tax rate of 25% (2023:
25%)
(820,426)
(2,330,460)
Non-deductible or assessable items
1,450
4,176
Share-based payments
55,138
392,417
Unrealised loss on associates
95,476
140,368
Research and development grant
(494,224)
(535,439)
Fair value increase in financial assets
(23,784)
(72,450)
Fringe benefits tax
-
2,650
Capital raising expenditure
(91,809)
(111,496)
Increase in unrecognised deferred tax assets
1,234,263
2,510,234
-
-
(c) Current tax assets and liabilities
Current tax liability
-
-
(d) Recognised deferred tax assets and liabilities
The Group has not recognised any deferred tax assets or liabilities during the year (2023: Nil).
51
(e) Tax losses
The Group has Australian revenue tax losses for which no deferred tax recognized is recognised on
the statement of financial position of $36,469,035 (2023: $35,126,756) which are available indefinitely
for offset against future taxable income subject to continuing to meet the relevant statutory tests.
The Group has no Australian capital tax losses available (2023: nil).
(f) Unrecognised temporary differences
As at 30 June 2024, the Group has other temporary differences (excluding tax differences relating to
tax losses) for which no deferred tax recognized is recognised in the statement of financial position
of $172,556 (2023: $138,789). None of these unrecognised temporary differences relate to
investments in subsidiaries, associates or joint ventures.
(g) Tax consolidation
Members of the tax consolidated group and the tax sharing agreement
RareX Limited and its 100% owned Australian resident subsidiary were both subsidiaries in a tax-
consolidated group with Geoinformatics Exploration Australia Pty Ltd as the head entity until 2 July
2007. A new tax-consolidated group was formed on 1 July 2008 with RareX Limited as Head Entity.
Members of the new tax-consolidated group have not yet entered into a tax sharing agreement.
9.
EARNINGS PER SHARE
The following reflects the income used in the basic and diluted earnings per share computations.
Consolidated
2024
2023
$
$
(a) Earnings used in calculating earnings per share
For basic and diluted earnings per share
Loss from continuing operations after tax for the year
(3,281,702)
(9,321,840)
(b) Weighted average number of shares
Weighted average number of shares used in calculation of basic
earnings per share
694,721,508
606,478,419
Weighted average number of shares used in calculation of diluted
earnings per share
694,721,508
606,478,419
(c) Earnings per share
Basic loss per share
(0.47) cents
(1.54) cents
Diluted loss per share
(0.47) cents
(1.54) cents
52
10.
CASH AND CASH EQUIVALENTS
Consolidated
2024
2023
$
$
Cash at bank
1,895,899
4,310,622
Term Deposits
40,000
-
1,935,899
4,310,622
11.
TRADE AND OTHER RECEIVABLES
Consolidated
2024
2023
$
$
Trade debtors
37,356
9,095
Sundry debtors
(533)
1,085
Security and tenement deposits
7,500
134,442
GST input tax refundable
46,846
221,915
Prepayments
122,727
108,200
213,536
474,737
Fair value and credit risk
Due to the short term nature of the receivables, their carrying value is assumed to approximate their
fair value. GST input tax refundable is receivable from the Commonwealth of Australia and is therefore
viewed as having low credit risk.
12.
FINANCIAL ASSETS AT FAIR VALUE
Consolidated
2024
2023
$
$
Financial assets at fair value through profit or loss
Non-Current
Shares in listed corporations, at fair value
Kincora Copper Ltd (ASX: KCC) (44,983,333 CDIs; 2023:
4,983,333) shares)1
2,159,200
283,999
Canada Rare Earth Corp (TSXV: LL.V) (24,579,658 shares; 2023:
24,579,658)2
540,569
1,120,632
2,699,769
1,404,631
1 The market value of the CDIs in Kincora Copper Ltd as at 30 June 2024 is based on a closing price of Kincora Copper Ltd
CDIs of AUD 0.048 (2023: CAD0.05) (2023: 0.87735CAD).
2 The market value of the shares in Canada Rare Earth Corp as at 30 June 2024 is based on a closing price of Canada Rare
Earth Corp shares of CAD0.02 (2023: CAD0.04) and an exchange rate of 1AUD = 0.9094CAD (2023: 0.87735CAD).
53
13.
INVESTMENT IN ASSOCIATE
In accordance with AASB 128, the Group has recognised its initial investment in Cosmos Exploration
Limited less its share of Cosmos’ post divestment loss. At disposal of subsidiary, RareX have sold
their six tenements to Cosmos and consideration was received by shares.
Consolidated
2024
2023
$
$
Cosmos Exploration Limited (10,000,000 shares)
2,000,000
2,000,000
Loss brought forward
(1,030,078)
(468,606)
Less: Share of Cosmos’ post divestment loss for the period
(557,569)
(561,472)
412,353
969,922
As part of the divestment of Cosmos, it was agreed that RareX would retain a 25% interest in the
Orange East Project (EL 8442) which is free carried until completion of a bankable feasibility study.
Interests in associates are accounted for using the equity method of accounting. During the period,
Rarex’s shares in Cosmos remained unchanged whilst Cosmos increased its share capital resulting
in a reduction in Rarex’s equity interest in Cosmos. Information relating to associates that are material
to the consolidated entity are set out below:
Name
Nature of
investment
Country of
incorporation
Equity interest (%)
Investment ($)
2024
2023
2024
2023
Cosmos Exploration
Limited
Ordinary
shares
Australia
14
18
412,353
969,922
Summarised financial information
Cosmos Exploration Ltd
2024
2023
$
$
Summarised statement of financial position
Current Assets
Cash and cash equivalents
695,853
2,559,244
Trade and other receivables
64,417
82,925
Non-current Assets
Property, plant and equipment
51,445
83,383
Exploration and evaluation costs
5,521,500
6,244,272
Total Assets
6,333,215
8,969,824
Current Liabilities
Trade and other payables
196,361
121,652
Provisions
35,758
14,956
Loans and borrowings
-
-
Total Liabilities
232,119
136,608
Net Assets
6,101,096
8,833,216
Summarised statement of profit or loss and other comprehensive
Interest revenue
34,833
58,743
Corporate compliance costs
(57,580)
(41,862)
54
Accounting, audit and corporate fees
(120,633)
(132,849)
Directors' fees, salaries, superannuation, and consulting costs
(449,089)
(277,053)
Administration costs
(273,500)
(124,724)
Legal fees
(12,519)
(64,091)
Travel expenses
-
(333)
Exploration expenditure expensed
(1,604,965)
(1,567,662)
Impairment of Capitalised Exploration
(777,772)
-
Share based payment expensed
(666,845)
(173,491)
Other expenses
(31,938)
(20,044)
Profit before income tax
(3,960,008)
(2,343,366)
Income tax expense
-
-
Profit after income tax
(3,960,008)
(2,343,366)
Other comprehensive income
(19,537)
(410)
Total comprehensive loss net of tax
(3,979,545))
(2,343,776)
Reconciliation of the consolidated entity's carrying amount
Opening carrying amount
969,922
1,531,394
Initial recognition of investment in Cosmos
-
-
Share of loss after income tax
(557,569)
(561,472)
Closing carrying amount
412,353
969,922
Commitments
Minimum exploration commitments
Within one year
1,539,688
1,229,145
One to five years
2,123,351
2,928,443
3,663,039
4,157,588
Cosmos Exploration Ltd has no contingent liabilities.
55
14.
PLANT AND EQUIPMENT
Consolidated
2024
2023
$
$
Original Cost
Computer Equipment
At 1 July
45,842
38,665
Additions
1,011
7,177
Disposals
-
-
At 30 June
46,853
45,842
Plant and Equipment
At 1 July
113,712
113,712
Additions
-
-
Disposals
-
-
At 30 June
113,712
113,712
Motor Vehicles
At 1 July
244,288
59,989
Additions
-
184,299
Disposals
-
-
At 30 June
244,288
244,288
Total Property, Plant and Equipment
At 1 July
403,842
212,366
Additions
1,011
191,476
Disposals
-
-
At 30 June
404,853
403,842
Accumulated Depreciation
Computer Equipment
At 1 July
32,085
23,908
Depreciation charge for year
7,609
8,177
Accumulated depreciation on disposals
-
-
At 30 June
39,694
32,085
Plant and Equipment
At 1 July
47,954
29,064
Depreciation charge for year
18,892
18,890
Accumulated depreciation on disposals
-
-
At 30 June
66,846
47,954
Motor Vehicles
At 1 July
40,828
19,657
Depreciation charge for year
48,004
21,171
Accumulated depreciation on disposals
-
-
At 30 June
88,832
40,828
Total Accumulated Depreciation
At 1 July
120,867
72,629
Depreciation charge for year
74,505
48,238
Accumulated depreciation on disposals
-
-
At 30 June
195,372
120,867
56
Consolidated
2024
2023
$
$
Total Plant and Equipment
Original cost
404,853
403,842
Accumulated depreciation
(195,372)
(120,867)
Net carrying amount
209,481
282,975
The useful life of the assets was estimated as follows:
Sundry equipment:
5 to 15 years
Computer equipment:
2- 4 years
Motor vehicles:
5 to 8 years
Furniture and Fittings:
5 to 15 years
Library:
7 years
Leasehold improvements:
Over the remainder of the lease term up to 2 years
No assets have been pledged as security for borrowings.
15.
RIGHT OF USE ASSET
Consolidated
2024
2023
$
$
Land and buildings - right-of-use
Opening balance
216,574
305,090
Additions
-
-
Disposals
(156,061)
-
Depreciation
(50,952)
(88,516)
9,562
216,574
During the financial year, the consolidated group ended its lease agreements for its office and
equipment and instead has a sub-licence agreement for its office. The group continues to maintain
the lease for a warehouse.
57
16.
TRADE AND OTHER PAYABLES
Consolidated
2024
2023
$
$
Notes
Trade payables
(i) – (ii)
759,661
1,496,784
Accrued expenses
54,834
148,632
Other payables
100,633
152,200
915,128
1,805,816
(i)
Due to the short term nature of these payables, their carrying value is assumed to
approximate their fair value.
(ii)
Trade payables are non-interest bearing and are normally settled on 30 day terms.
17.
LEASE LIABILITIES
Consolidated
2024
2023
$
$
Current liability
9,426
91,532
Non-current liability
-
148,589
9,426
240,121
Maturity
Within 1 year
9,426
91,532
1-2 years
-
73,692
2-5 years
-
74,897
Over 5 years
-
-
9,426
240,121
Opening balance
240,121
323,132
Initial recognition of new leases
-
-
Interest
7,300
17,575
Principal
(46,712)
(100,586)
Derecognition on disposal
(191,282)
-
9,426
240,121
The consolidated entity leases a warehouse. The leases have various escalation clauses. On renewal,
the terms of the leases are renegotiated.
58
18.
ISSUED CAPITAL
Consolidated
2024
2023
Notes
$
$
Ordinary shares
(a)
51,987,481
49,739,062
(a) Ordinary shares
Issued and fully paid ordinary shares carry one vote per share and carry the right to dividends. Unless
stated otherwise, references to shares, options and performance rights in these financial statements
are on a post-consolidation basis.
Consolidated
2024
2023
No. of shares
$
No. of shares
$
Movement in ordinary shares on issue
As at 1 July
668,775,462
49,739,062 569,926,537
45,715,177
Add:
Shares issued on exercise of
options
-
-
30,000
406,250
Shares issued on conversion
of performance rights
4,000,000
240,000
Issue of shares to Directors
-
-
289,500
650,000
Shares issued via placement
107,539,682
1,849,005
4,000,000
10,000,000
Shares issued in connection
with the Khaleesi Project
9,816,406
186,512
-
-
Less:
Transactions costs on share
issues
-
(27,097)
(295,615)
(656,703)
As at 30 June
790,131,550
51,987,481 668,775,462
49,739,062
(b) Capital risk management
When managing capital, management’s objective is to ensure the entity continues as a going concern
as well as to maintain appropriate returns to shareholders and benefits for other stakeholders.
Management also aims to maintain a capital structure that ensures an appropriate cost of capital
available for the entity.
In order to maintain or adjust the capital structure, the entity may adjust the number of dividends paid
to shareholders, return capital to shareholders, issue new shares, enter into joint ventures or sell
assets.
The entity does not have a defined share buy-back plan.
No dividends were paid in the year ended 30 June 2024.
The consolidated entity is not subject to any externally imposed capital requirements.
59
Management reviews management accounts on a monthly basis and actual expenditures against
budget on a monthly basis.
19.
RESERVES
Consolidated
2024
2023
$
$
Options reserve
5,874,212
5,874,212
Share-based payment reserve
3,934,922
3,954,370
Foreign currency translation reserve
4,554
(4,501)
9,813,688
9,824,081
(a) Movement in reserves
Options reserve
Balance at beginning of the financial year
5,874,212
6,163,712
Consideration received from issue of options
-
-
Fair value of options issued
-
(289,500)
Balance at end of financial year
5,874,212
5,874,212
Share-based payment reserve
Balance at beginning of the financial year
3,954,370
2,414,702
Fair value of performance rights issued
220,552
1,539,668
Conversion of performance rights to ordinary shares
(240,000)
-
Balance at end of financial year
3,934,922
3,954,370
Foreign currency translation reserve
Balance at beginning of the financial year
(4,501)
(3,497)
Currency translation differences
9,055
(1,004)
Balance at end of financial year
4,554
(4,501)
(b) Nature and purpose of reserves
The options reserve records the fair value of share options issued, using the Black-Scholes option
pricing model, to the Company's directors, employees, consultants and brokers as well as the vendors
of drilling services and tenements.
The share-based payments reserve records the value of performance rights issued to the Company's
directors.
The foreign currency translation reserve is used to recognise exchange differences arising from the
translation of the financial statements of foreign operations to Australian dollars.
60
(c) Movement in options
Expiry
date of
options
Notes
Exercise
price
On issue at
1 July 2023
Issued/
Granted
Exercised
Cancelled /
expired /
forfeited
On issue at
30 June
2024
30/11/23
$0.1500
10,000,000
-
-
10,000,000
-
31/12/23
$0.1500
5,000,000
-
-
5,000,000
-
31/12/23
$0.1500
2,000,000
-
-
2,000,000
-
01/03/26
(i)
$0.1500
4,500,000
-
-
-
4,500,000
26/05/25
(ii)
$0.0675
44,444,474
-
-
-
44,444,474
26/05/25
(iii)
$0.0675
-
5,555,556
-
-
5,555,556
65,944,474
5,555,556
-
17,000,000
54,500,030
All unquoted options granted have been valued according to the Black Scholes model.
(i)
Issued to D Goeman in March 2023; vested immediately
(ii)
Quoted options issued on 26 May 2023 as per prospectus dated 24 May 2023
(iii)
Quoted options issued on 9 August 2023 as per prospectus dated 9 August 2023
(d) Movement in performance rights
Note
On issue at
1 July 2023
Granted
during the
year
Converted
during the
year
Cancelled /
expired /
forfeited
On issue at
30 June
2024
Class A
(ii)
13,500,000
-
-
(13,500,000)
-
Class B
(ii)
13,500,000
-
-
(13,500,000)
-
Class C
(i)
13,500,000
-
-
(13,500,000)
-
Class D
(i)
2,000,000
-
(2,000,000)
-
-
Class E
(i)
2,000,000
-
-
-
2,000,000
Class F
(i)
2,000,000
-
-
-
2,000,000
Class D
(ii)
4,000,000
-
(2,000,000)
-
2,000,000
Class E
(ii)
3,500,000
500,000
-
-
4,000,000
Class F
(ii)
4,000,000
500,000
-
-
4,500,000
Class G
(ii)
-
500,000
-
-
500,000
58,000,000
1,500,000
(4,000,000)
(40,500,000)
15,000,000
(i)
Performance rights issued to Directors and key management personnel
(ii)
Performance rights issued to other employees and contractors
61
Class
Vesting Condition - vesting will occur:
Number
D
A JORC code compliant inferred or indicated resource of 1MT contained
TREO at the Cummins Range Project and 24 months service
2,000,000
E
Granting of a mining license for the Cummins Range project and 24 months
service
6,000,000
F
Completion of a positive pre-feasibility study for the Cummins Range Project
and 24 months service
6,500,000
G
Completion of a definitive feasibility study for the Cummins Range Project
and 24 months service
500,000
20.
STATEMENT OF CASH FLOWS RECONCILIATION
Consolidated
2024
2023
$
$
Reconciliation of the net loss after tax to net cash flows from
operations
Loss from ordinary activities after income tax
(3,281,702)
(9,321,840)
Adjustments for:
Depreciation
125,457
136,754
Impairment
-
344
Payments to suppliers and employees
34,287
(8,772)
Equity settled share-based payments
220,552
1,569,668
Unrealised (gain)/loss on investments
(39,880)
(289,799)
Foreign exchange gain
-
(756)
Share of loss from equity accounted interest
557,569
561,473
Gain on sale of subsidiary
(1,200,000)
-
Other
186,512
-
Changes in assets and liabilities
Movement in trade and other receivables
(26,643)
25,966
Movement in other assets
(14,528)
(9,966)
Movement in trade and other payables
(740,879)
869
Movement in provisions
(839)
(50,713)
Net cash flow used in operating activities
(4,180,094)
(7,386,772)
62
21.
SEGMENT INFORMATION
Operating segments are reported in a manner that is consistent with the internal reporting to the chief
operating decision maker (CODM), which has been identified by the Group as the Board of Directors.
An operating segment is a component of the Group that engages in business activities from which it
may earn revenues and incur expenses, including revenues and expenses that relate to transactions
with any of the Group’s other components.
At 30 June 2024, the Group had the following segments:
Operating Profit/(Loss)
Total Assets
Total Liabilities
30 June
2024
$
30 June
2023
$
30 June
2024
$
30 June
2023
$
30 June
2024
$
30 June
2023
$
Rare Earths
(Western Australia)
(2,691,727)
(7,158,050)
182,494
398,471
(408,055) (1,345,661)
Gold/Nickel/Copper
(Western Australia)
-
-
-
-
-
-
Cobalt
(Morocco)
(28,142)
(20,956)
150
140
(9,872)
(1,781)
Copper/Gold
(New South Wales)
-
-
-
-
-
-
Copper/Gold
(Kenya)
-
-
-
-
-
-
Corporate
(561,833)
(2,142,834)
5,297,956
7,260,850
(590,146)
(795,816)
(3,281,702)
(9,321,840)
5,480,600
7,659,461 (1,008,072) (2,143,258)
22.
COMMITMENTS
Consolidated
2024
2023
$
$
Estimated commitments for which no provisions were included in
the financial statements are as follows:
(a) Exploration Expenditure Commitments:
Payable
- not later than one year
318,355
320,792
- later than one year and not later than five years
390,716
772,287
709,071
1,093,079
Included in overall commitments calculations are estimates of the Company’s expected
commitments in respect of its sole funded exploration licenses.
All the exploration expenditure commitments are non-binding, in respect of outstanding expenditure
commitments, in that the Company or its joint venture partners have the option to relinquish and lose
63
these licenses or their contractual commitments at any stage, at the cost of its cumulative
expenditures up to the point of relinquishment.
(b) Lease Commitments
In the previous year, the Company entered into lease commitments which resulted in recognition of
any right-of-use asset, or associated lease liability. Please refer Note 16 and 18.
23.
CONTINGENT LIABILITIES
A 1% royalty (capped at $1,000,000) is payable with respect to net smelter returns on commercial
production from the Cummins Range Rare Earths Project. As this royalty is subject to commercial
production at the Cummins Range Rare Earths Project, it is disclosed as a contingent liability and has
not been brought to account as a liability in the financial statements as at 30 June 2024.
The Company has not yet met the required minimum exploration commitments with respect to the
“Red Dragon” Project (E39/2213) and is in the process of relinquishing these titles post-year end.
24.
RELATED PARTY DISCLOSURES
(a) Ultimate parent
The ultimate Australian parent entity and the ultimate parent of the consolidated entity is RareX
Limited.
(b) Subsidiaries and associate
The subsidiaries of RareX Limited are listed in the following table:
Name
Nature of
investment
Country of
incorporation
% Equity interest
Investment $
2024
2023
2024
2023
Cosmos Exploration
Limited (associate)
Ordinary
shares
Australia
14
19
279,846
969,922
Cummins Range Pty
Ltd
Ordinary
shares
Australia
100
100
4,782,250
4,782,250
RareXploration Pty
Ltd
Ordinary
shares
Australia
100
-
1
-
Geoinformatics
Exploration Tasmania
Pty Ltd
Ordinary
shares
Australia
100
100
1
1
Galaxis Minerals Pty
Ltd (formerly Great
Northern Hydrogen
Pty Ltd)
Ordinary
shares
Australia
100
100
1
1
Leogang Austria Pty
Ltd
Ordinary
shares
Australia
100
100
10
10
RareX Kenya Ltd
Ordinary
shares
Kenya
100
100
1
1
Ste Clancy Morocco
Sarl
Ordinary
shares
Morocco
100
100
15
15
64
1000854019 Ontario
Inc
Ordinary
shares
Canada
100
-
1
-
(c) Transactions with related parties
The following table provides the total amount of transactions (GST exclusive where GST applies)
entered into with related parties for the relevant financial year. The transactions have all been
undertaken on an arms’ length basis.
Consolidated
2024
2023
$
$
Sales of goods and services
Rent, rates and office charges to Cosmos Exploration Ltd, a related
party of Jeremy Robinson.
-
26,746
Consulting charges to Green Technology Metals Ltd, a related party
of John Young and Cameron Henry.
40,000
3,164
Repayment of expenses to Cosmos Exploration Ltd, a related party
of Jeremy Robinson.
-
-
Amounts owed in respect of related party transactions included in
the trade debtors and other debtors
Cosmos Exploration Ltd
-
558
Consulting charges to Green Technology Metals Ltd, a related party
of John Young and Cameron Henry.
20,000
-
Purchase of goods and services
Legal fees billed by Hamilton Locke, a company associated with
Shaun Hardcastle
157,424
29,857
Consulting fees billed by Primero Group Ltd, a company previously
associated with Cameron Henry
-
172,656
Office Rental charges from Green Technology Metals Ltd, a related
party of John Young and Cameron Henry
150,537
57,261
Amounts owed in respect of related party transactions included in
the trade creditors and accruals balance
Legal fees billed by Hamilton Locke Ltd, a company associated with
Shaun Hardcastle
25,887
6,991
Consulting fees billed by the Primero Group Ltd, a company
previously associated with Cameron Henry
-
4,096
Office Rental charges from Green Technology Metals Ltd, a related
party of John Young and Cameron Henry
12,032
56,478
65
25.
DIRECTORS AND KEY MANAGEMENT PERSONNEL
(a) Details of Key Management Personnel
The names of the Company’s officeholders in office at any time during the financial year are as
follows. Officeholders were in office for the entire period unless otherwise stated.
Danny Goeman
Director (Non-Executive) (appointed 1 March 2023)
Shaun Hardcastle Director (Non-Executive)
Cameron Henry
Director (Non-Executive) (retired 14 July 2024)
Jeremy Robinson Director (Non-Executive Chair)
John Young
Director (Non-Executive) (retired 14 July 2024)
James Durrant
Managing Director (Chief Executive Officer from 3 April 2023 to 14 July 2024)
Oonagh Malone
Company Secretary
(b) Compensation for Key Management Personnel
Consolidated
2024
2023
$
$
Short-term employee benefits
600,096
783,065
Consulting fees
-
4,500
Non-monetary benefits
-
1,571
Post-employment benefits
56350
58,039
Share-based payments
37,222
989,761
Total Compensation
693,668
1,836,936
66
26.
SHARE-BASED PAYMENT EXPENSE
(a) Recognised share-based payments expenses
The expense recognised for the expensing of employee and consultant services received is shown
below:
Consolidated
2024
2023
$
$
Recognised in the Statement of Profit or Loss and Other
Comprehensive Income
Expense recognised under employee share scheme
Expense arising from equity-settled share-based payment
transactions – directors and key management personnel
(performance rights)
37,222
861,061
Expense arising from equity-settled share-based payment
transactions – director (options)
-
128,700
Expense arising from equity-settled share-based payment
transactions – other employees (performance rights)
183,330
542,407
220,552
1,532,168
Equity payment recognised for consulting fees
Equity-settled share-based payment transactions – options issued
for consideration for facilitation of acquisition and ongoing
consultancy services
-
37,500
Total recognised in the Statement of Profit or Loss and Other
Comprehensive Income
220,552
1,569,668
(b) Weighted average remaining contractual life
The weighted average remaining contractual life of the options on issue is 0.97 years (2023: 1.58
years).
(c) Range of exercise price
The range of the exercise prices of the options on issue is $0.0675 - $0.100 (2023: $0.025 - $0.150).
(d) Weighted average fair value
The fair value of the options issued as share-based payments during the year was $0.070 per option
(2023: $0.091 per option).
(e) Weighted average share price
The weighted average price per share in relation to shares issued during the year was $0.019 (2023
$0.0125).
67
(g) Performance rights valuation
During the year ended 30 June 2024, the following share-based payments were made which have
been accounted for in the share-based payments reserve. The following performance rights, which
were issued to Directors, key management personnel and employees, were recorded at their fair value
in the share-based payment reserve. The performance rights have been valued by the Directors at the
closing share price on the grant date, less discounts to reflect the effects of any market based vesting
conditions as detailed in the below table. The expected vesting period for each performance right for
performance based vesting conditions is the period until expiry of the performance right.
KMP
Class
Grant date
No. of
performance
rights
Fair value
per
performance
right
($)
Total fair value of
performance
rights issued
($)
Expense to
Statement of
Profit or Loss
for the year1
($)
James
Durrant
E
10/02/2023
2,000,000
0.060000
120,000
10,000
F
10/02/2023
2,000,000
0.060000
120,000
10,000
4,000,000
240,000
20,000
Other
employees
D
10/02/2023
2,000,000
0.060000
120,000
45,000
E
10/02/2023
3,500,000
0.060000
210,000
57,500
F
10/02/2023
4,000,000
0.060000
240,000
57,500
E
8/12/2023
500,000
0.028000
14,000
3,610
F
8/12/2023
500,000
0.028000
14,000
3,610
G
8/12/2023
500,000
0.028000
14,000
3,610
11,000,000
612,000
170,830
Total
15,000,000
852,000
190,830
1 Performance rights are expensed on a straight-line basis over the vesting period.
1.5 million performance rights were issued to employees during the year ended 30 June 2024 (2023:
18 million). See Note 19 for the movement in the performance rights during the year.
68
For the performance rights issued in the year, the fair value for each class of performance right and
the discount applied to share price at grant date to reflect market based vesting condition at year end
are as follows:
Classes E, F and G
Number of
Rights
Valuation
per Right
Total Fair
Value
Other employees & contractors
Underlying value of the security
$0.028
Exercise price
Nil
Grant date
8/12/2023
Volatility
N/A
Risk free rate
N/A
Performance Right:
Class E
500,000
$0.028
14,000
Class F
500,000
$0.028
14,000
Class G
500,000
$0.028
14,000
1,500,000
42,000
Total
1,500,000
42,000
The performance rights will vest on meeting the following performance conditions before the expiry
date:
Class
Vesting Condition - vesting will occur:
Number
D
A JORC code compliant inferred or indicated resource of 1MT contained
TREO at the Cummins Range Project and 24 months service
2,000,000
E
Granting of a mining license for the Cummins Range project and 24 months
service
6,000,000
F
Completion of a positive pre-feasibility study for the Cummins Range
Project and 24 months service
6,500,000
G
Completion of a definitive feasibility study for the Cummins Range Project
and 24 months service
500,000
On meeting vesting conditions, performance rights will each convert into one ordinary share with no
further consideration. Performance rights were valued at the closing share price on the grant date,
less discounts to reflect the effects of any market based vesting conditions as detailed the table
above. The expected vesting period for each performance right for performance-based vesting
conditions is the period until expiry of the performance right.
69
27.
AUDITOR’S REMUNERATION
The auditor of RareX Limited was SW Audit.
Consolidated
2024
2023
$
$
Amounts received or due and receivable by SW Audit
- an audit or review of the financial statements of the entity and its
controlled entity
41,500
32,000
- other services in relation to the entity and its controlled entity
-
-
41,500
32,000
28.
INFORMATION RELATING TO RAREX LIMITED (‘the Parent Entity’)
2024
2023
$
$
ASSETS
Current Assets
2,141,618
4,606,477
Non-current Assets
3,023,729
1,705,543
TOTAL ASSETS
5,165,347
6,312,020
LIABILITIES
Current Liabilities
590,146
647,228
Non-current Liabilities
-
148,589
TOTAL LIABILITIES
590,146
795,817
NET ASSETS
4,575,200
5,516,203
EQUITY
Issued capital
52,447,480
49,739,062
Reserves
9,809,134
9,828,582
Accumulated losses
(57,221,414)
(54,051,441)
TOTAL EQUITY
4,575,200
5,516,203
Loss of the parent entity
(15,509,584)
(15,142,568)
Total comprehensive loss of the parent entity
(15,509,584)
(15,142,568)
70
Contingent liabilities of the parent entity: Nil.
2024
2023
$
$
Reserves included in the parent entity:
Options reserve
5,874,212
5,874,212
Share-based payment reserve
3,934,922
3,954,370
9,809,134
9,828,582
Commitments for the acquisition of property, plant and equipment by the parent entity: Nil.
29.
FINANCIAL INSTRUMENTS, RISK MANAGEMENT OBJECTIVES AND POLICIES
The consolidated entity’s principal financial instruments comprise cash and short-term deposits.
The main purpose of these financial instruments is to finance the consolidated entity’s operations.
The consolidated entity has various other financial assets and liabilities such as trade receivables
and trade payables, which arise directly from its operations. It is, and has been throughout the entire
period under review, the consolidated entity’s policy that no trading in financial instruments shall be
undertaken.
For all financial instruments of the Company, the carrying value approximates the fair value.
The main risk arising from the consolidated entity’s financial instruments is cash flow interest rate
risk. Other minor risks are summarised below or disclosed at Note 19 in the case of capital risk
management. The Board reviews and agrees policies for managing each of these risks.
(a) Cash Flow Interest Rate Risk
The consolidated entity’s exposure to the risks of changes in market interest rates relates primarily
to the consolidated entity’s short-term deposits with a floating interest rate. These financial assets
with variable rates expose the consolidated entity to cash flow interest rate risk. All other financial
assets and liabilities in the form of receivables and payables are non-interest bearing. The
consolidated entity does not engage in any hedging or derivative transactions to manage interest rate
risk. In regard to its interest rate risk, the consolidated entity continuously analyses its exposure.
Within this analysis consideration is given to potential renewals of existing positions, alternative
investments and the mix of fixed and variable interest rates. The sensitivity to the movement in
interest rates for the likely range of outcomes is immaterial.
Based on the sensitivity analysis only interest revenue from variable rate deposits and cash balances
is impacted, resulting in a decrease or increase in overall income.
(b) Liquidity risk
The consolidated entity manages liquidity risk by maintaining sufficient cash reserves and through
the continuous monitoring of budgeted and actual cash flows. Further, the consolidated entity only
invests surplus cash with major financial institutions.
71
Contracted maturities of payables:
Consolidated
2024
2023
$
$
Payable
- less than 6 months
596,903
1,805,816
- 6 to 12 months
230,081
-
- 1 to 5 years
-
-
- later than 5 years
-
-
Total
826,984
1,805,816
(c) Commodity price risk
The consolidated entity has no direct commodity exposures.
(d) Foreign currency risk
The consolidated entity undertakes certain transactions denominated in foreign currency and is
exposed to foreign currency risk through foreign exchange rate fluctuations.
Foreign exchange risk arises from future commercial transactions and recognised financial assets
and financial liabilities denominated in a currency that is not the entity's functional currency. The risk
is measured using sensitivity analysis and cash flow forecasting. Given the current level of
transactions denominated in foreign currency, the Directors consider foreign current risk not material.
(e) Price risk
The Group is exposed to price risk on the value of its financial assets being listed investments.
If there was a 10% increase or decrease in market price of these listed investments, the net realisable
value of these listed investments would increase/(decrease) by $269,976 (2023: $140,463).
Accordingly, an increase of 10% in the value of the listed investments would decrease the net loss by
$269,976 (2023: $140,463) and a decrease of 10% in the value of the listed investments would
increase the net loss $269,976 (2023: $140,463).
(f) Carrying values of financial instruments not recognised at fair value
Due to their short term nature, the carrying value of financial assets and financial liabilities, not
recognised at fair value, recorded in the financial statements approximates their respective fair
values, determined in accordance with accounting policies disclosed in Note 2 of the financial
statements.
(g) Fair value hierarchy
The following table details the Groups assets and liabilities, measured or disclosed at fair value using
a three level hierarchy reflecting the significance of the inputs used in making the measurements. The
fair value hierarchy consists of the following levels:
•
quoted prices in active markets for identical assets or liabilities (Level 1);
72
•
inputs other than quoted prices included within Level 1 that are observable for the asset or
liability, either directly (as prices) or indirectly (derived from prices) (Level 2); and
•
inputs for the asset or liability that are not based on observable market data (unobservable
inputs) (Level 3).
Level 1
$
Level 2
$
Level 3
$
Total
$
2024
Financial assets:
Fair value through profit or loss:
Listed investments
2,699,769
-
-
2,699,769
2023
Financial assets:
Fair value through profit or loss:
Listed investments
1,404,631
-
-
1,404,631
(h) Fair Value Estimation
The fair value of financial assets and financial liabilities must be estimated for recognition and
measurement or for disclosure purposes. All financial assets and financial liabilities of the Group at
the balance date are recorded at amounts approximating their carrying amount. The fair value of
financial instruments traded in active markets is based on quoted market prices at the reporting date.
The quoted market price used for financial assets held by the Group is the last trade price. The
carrying value less impairment provision of trade receivables and payables are assumed to
approximate their fair values due to their short-term nature.
30.
SUBSEQUENT EVENTS
Subsequent to 30 June 2024, there have been no significant events with the exception of the below:
•
Mr James Durrant appointed to Managing Director from Chief Executive Officer from 15 July
2024, with Non-executive directors Mr John Young and Mr Cameron Henry retiring.
•
Successful negotiation of Land Access and Heritage Agreement between native title holders
and RareX for the Khaleesi Project tenements.
•
Cummins Range Development update which highlighted the undeveloped potential of the rare
earth project and significant phosphate deposit.
•
Mt Mansbridge, 100% owned RareX tenement uncovers significant rare earths potential close
to the Browns Range heavy rare earths deposits (10.8mT at 0.76% TREO).
•
RareX signed a site access agreement with AngloGold Ashanti in relation to the 100% owned
Khaleesi Project which is highly prospective for niobium and rare earths, aswell as gold and
base metals.
73
Consolidated entity disclosure statement
The following table provides a list of all entities included in the Group’s consolidated financial
statements, prepared in accordance with the requirements of Section 295(3A) of the Corporations
Act. The ownership interest is only disclosed of those entities which are a body corporate,
representing the direct and indirect percentage of share capital owned by the Company.
Company Name
Type of entity
% of share capital as
at 30 June 2024
Country of
incorporation
Country of tax
residency
RareX Limited (Holding
Company)
Body corporate
-
Australia
Australia
Cummins Range Pty Ltd
Body corporate
100%
Australia
Australia
RareXploration Pty Ltd
Body corporate
100%
Australia
Australia
Geoinformatics
Exploration Tasmania Pty
Ltd
Body corporate
100%
Australia
Australia
Galaxis Minerals Pty Ltd
Body corporate
100%
Australia
Australia
Leogang Austria Pty Ltd
Body corporate
100%
Austria
Austria
RareX Kenya Ltd
Body corporate
100%
Kenya
Kenya
Ste Clancy Morocco Sarl
Body corporate
100%
Morocco
Morocco
1000854019 Ontario Inc
Body corporate
100%
Canada
Canada
74
Directors’ Declaration
The Directors of RareX Limited declare that:
1.
In the opinion of the Directors:
(a)
the attached financial statements and the notes thereto of the Company and of the
consolidated entity are in accordance with the Corporations Act 2001, including:
(i)
giving a true and fair view of the Company’s and consolidated entity’s financial
position as at 30 June 2024 and of their performance for the year ended on that
date; and
(ii)
complying with Accounting Standards;
(b)
the attached financial statements and the notes thereto of the Company and of the
consolidated entity are in accordance with International Financial Reporting Standards
issued by the International Accounting Standards Board;
(c)
there are reasonable grounds to believe that the Company will be able to pay its debts
as and when they become due and payable; and
(d)
the information disclosed in the attached consolidated entity disclosure statement is
true and correct.
2.
This declaration has been made after receiving the declarations required to be made to the
Directors in accordance with section 295A of the Corporations Act 2001 for the financial year
ending 30 June 2024.
Signed in accordance with a resolution of the Directors made pursuant to Section 295(5) of the
Corporations Act 2001.
On behalf of the Board
Jeremy Robinson
Chairman
30 September 2024
Brisbane
Level 15
240 Queen Street
Brisbane QLD 4000
T + 61 7 3085 0888
Melbourne
Level 10
530 Collins Street
Melbourne VIC 3000
T + 61 3 8635 1800
Perth
Level 18
197 St Georges Terrace
Perth WA 6000
T + 61 8 6184 5980
Sydney
Level 7, Aurora Place
88 Phillip Street
Sydney NSW 2000
T + 61 2 8059 6800
SW Audit ABN 39 533 589 331. Liability limited by a scheme approved under Professional Standards
Legislation. SW Audit is an independent member of ShineWing International Limited.
sw-au.com
Take the lead
INDEPENDENT AUDITOR’S REPORT
TO THE MEMBERS OF RAREX LIMITED
Report on the Audit of the Financial Report
Opinion
We have audited the financial report of RareX Limited (the Company and its subsidiaries (the Group)) which
comprises the consolidated statement of financial position as at 30 June 2024, the consolidated statement of
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 financial statements, including a material accounting policy
information, the consolidated entity disclosure statement and the directors’ declaration.
In our opinion, the accompanying financial report of RareX Limited is in accordance with the Corporations Act
2001, including:
a. giving a true and fair view of the Group’s financial position as at 30 June 2024 and of its financial performance
for the year then ended, and
b. complying with Australian Accounting Standards and the Corporations Regulations 2001.
Basis for Opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those
standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Report section of our
report. We are independent of the Group in accordance with the auditor independence requirements of the
Corporations Act 2001 and the ethical requirements of the Accounting Professional & Ethical Standards Board’s
APES 110 Code of Ethics for Professional Accountants (including Independence Standards) (the Code) that are
relevant to our audit of the financial report in Australia. We have also fulfilled our other ethical responsibilities in
accordance with the Code.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Key Audit Matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of
the financial report of the current period. These matters were addressed in the context of our audit of the financial
report as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.
1. Investment in Associate – Cosmos Exploration Ltd
Key audit matter
How our audit addressed the key audit matter
Refer to Note 13 Investment in associate
RareX Limited’s investment in Cosmos Exploration
Ltd was identified as a Key Audit Matter due to the
judgment involved in the presence of assessing
significant influence after RareX's shareholding fell
below 20%. Despite the reduced shareholding (now
•
Obtaining and reviewing legal documentation and
ASX for any moments in holding
•
Assessing management’s control assessment of
Cosmos
•
Obtaining the reviewed financial statement of
Cosmos for the period ended 30 June 2024
Take the lead
at 14.01%), RareX continues to exercise significant
influence over this entity, due to its board
representation, and the role of Jeremy Robinson,
who serves as both Non-executive Chair of RareX
and Executive Director of Cosmos. On this basis,
the Company continues apply the equity method
under AASB 128 in accounting for this investment.
•
Obtaining information from component auditors
(Cosmos) to ensure profit share in Cosmos is not
materially misstated
•
Testing the equity accounting journals
•
Considering the impairment indicators of the
associate at the reporting date, and
•
Assessing the adequacy and appropriateness of the
disclosures in the financial statements.
Material Uncertainty Related to Going Concern
We draw attention to Note 2(a) in the financial report, which indicates that the Group incurred a net loss of
$3,272,647 (2023: $9,322,544) and the Group incurred a net cash operating cash outflows of $4,180,094 during
the year ended 30 June 2024 (2023: $7,386,772). As stated in Note 2(a), these events and conditions, along with
other matters as set forth in Note 2(a), indicate that a material uncertainty exists that may cast significant doubt on
the Group’s ability to continue as a going concern. Our conclusion is not modified in respect of this matter.
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 2024, 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:
a) the financial report (other than the consolidated entity disclosure statement) that gives a true and fair view
in accordance with Australian Accounting Standards and the Corporations Act 2001; and
b) the consolidated entity disclosure statement for being true and correct in accordance with the
requirements of the Corporations Act 2001, and
for such internal control as the directors determine is necessary to enable the preparation of:
i.
the financial report (other than the consolidated entity disclosure statement) that gives a true and fair view
and is free from material misstatement, whether due to fraud or error; and
ii.
the consolidated entity disclosure statement as true and correct and is free of misstatement, whether due
to fraud or error.
In preparing the financial report, the directors are responsible for assessing the ability of the Group to continue as a
going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of
accounting unless the directors either intend to liquidate the Group or to cease operations, or has no realistic
alternative but to do so.
Take the lead
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 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 scepticism throughout the audit. We also:
• Identify and assess the risks of material misstatement of the financial report, whether due to fraud or error,
design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and
appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from
fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal control.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the
Group’s internal control.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and
related disclosures made by the directors.
• Conclude on the appropriateness of the 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, actions taken to eliminate threats or safeguards applied.
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.
Take the lead
Report on the Remuneration Report
Opinion on the Remuneration Report
We have audited the Remuneration Report included in pages 22 to 29 of the directors’ report for the year ended 30
June 2024.
In our opinion, the Remuneration Report of RareX Limited for the year ended 30 June 2024 complies with section
300A of the Corporations Act 2001.
Responsibilities
The directors of the Company are responsible for the preparation and presentation of the Remuneration Report in
accordance with section 300A of the Corporations Act 2001. Our responsibility is to express an opinion on the
Remuneration Report, based on our audit conducted in accordance with Australian Auditing Standards.
SW Audit
Chartered Accountants
Richard Gregson
Partner
Perth, 30 September 2024
78
Mineral Resource Statement
The following information is provided in accordance with Listing Rule 5.21 and as at 30 June 2024.
Mineral Resource Estimation Governance Statement
RareX Limited ensures that the Mineral Resource Estimates are subject to appropriate levels of
governance and internal controls. The Mineral Resource Estimates have been generated by
independent external consultants and internal employees who are experienced in best practices in
modelling and estimation methods. Where applicable, the consultants have also undertaken review
of the quality and suitability of the underlying information used to generate the resource estimations.
The Mineral Resource estimates follow standard industry methodology using geological
interpretation and assay results from samples won through drilling. RareX Limited reports its Mineral
Resources in accordance with the “Australasian Code for Reporting of Exploration Results, Mineral
Resources and Ore Reserves” (the JORC Code) (2012 Edition). Competent Persons named by the
Company qualify as Competent Persons as defined in the JORC Code.
Mineral Resource for Cummins Range Project, Western Australia
The tables below set out the Mineral Resource Estimates as at 30 June 2023 (estimated in May 2023)
and as at 30 June 2024 (estimated in January 2024) for the Cummins Range Project, Western
Australia. The Company confirms that the change in the Resource Estimates are the consequence
of additional drilling undertaken.
Mineral Resource Estimate as at 30 June 2023 (P2O5 ≥2.5%)
RARE DYKE
Classification
Tonnes
(Mt)
P2O5
(%)
TREO +
Y2O3 (ppm)
HREO
(ppm)
Nd2O3
(ppm)
Pr6O11
(ppm)
Nb2O5
(ppm)
Sc2O3
(ppm)
ThU
(ppm)
Indicated
45.9
6.2
5700
290
910
270
1000
90
90
Inferred
368.9
4.0
3030
160
490
150
570
60
40
Total
414.8
4.2
3320
180
540
160
620
70
50
PHOS DYKE
Classification
Tonnes
(Mt)
P2O5
(%)
TREO +
Y2O3 (ppm)
HREO
(ppm)
Nd2O3
(ppm)
Pr6O11
(ppm)
Nb2O5
(ppm)
Sc2O3
(ppm)
ThU
(ppm)
Indicated
20.8
8.0
3580
300
720
190
470
80
100
Inferred
83.8
5.4
2340
200
470
120
450
60
60
Total
104.6
5.9
2590
220
520
140
450
70
70
COMBINED
Classification
Tonnes
(Mt)
P2O5
(%)
TREO +
Y2O3 (ppm)
HREO
(ppm)
Nd2O3
(ppm)
Pr6O11
(ppm)
Nb2O5
(ppm)
Sc2O3
(ppm)
ThU
(ppm)
Indicated
66.6
6.8
5010
290
850
250
830
90
90
Inferred
452.7
4.2
2900
170
490
140
550
60
40
Total
519.3
4.6
3170
190
540
160
580
70
50
79
Mineral Resource Estimate as at 30 June 2024 (P2O5 ≥2.5%)
RARE DYKE
Classification
Tonnes
(Mt)
P2O5
(%)
TREO +
Y2O3 (ppm)
HREO
(ppm)
Nd2O3
(ppm)
Pr6O11
(ppm)
Nb2O5
(ppm)
Sc2O3
(ppm)
ThU
(ppm)
Indicated
44.4
6.0
5560
280
880
260
990
90
80
Inferred
363.7
43.9
2960
160
480
140
570
70
40
Total
408.2
4.1
3240
180
520
160
610
70
40
PHOS DYKE
Classification
Tonnes
(Mt)
P2O5
(%)
TREO +
Y2O3 (ppm)
HREO
(ppm)
Nd2O3
(ppm)
Pr6O11
(ppm)
Nb2O5
(ppm)
Sc2O3
(ppm)
ThU
(ppm)
Indicated
33.0
7.6
3430
290
670
170
500
80
100
Inferred
83.1
5.6
2390
200
460
120
450
60
60
Total
116.2
6.2
2690
230
520
140
460
70
70
COMBINED
Classification
Tonnes
(Mt)
P2O5
(%)
TREO +
Y2O3 (ppm)
HREO
(ppm)
Nd2O3
(ppm)
Pr6O11
(ppm)
Nb2O5
(ppm)
Sc2O3
(ppm)
ThU
(ppm)
Indicated
77.4
6.7
4650
280
790
230
780
90
90
Inferred
446.9
4.2
2860
170
480
140
550
70
40
Total
524.3
4.6
3120
190
520
150
580
70
50
Notes:
1. Due to effects of rounding, the total may not represent the sum of all components
2. TREO (ppm) includes: Light Rare Earth Oxides (LREO): La2O3, CeO2, Pr6O11, Nd2O3; and Heavy Rare Oxides (HREO): Sm2O3, Eu2O3, Gd2O3, Tb4O7, Dy2O3, Ho2O3,
Er2O3, Tm2O3, Yb2O3, Lu2O3; + Y2O3
3. ThU comprises ThO2 + U3O8 (ppm)
4. Mineral Resource is reported from all blocks, classified as either Indicated or Inferred, where interpolated block grade is >2.5% P2O5
Competent Person’s Statements
The exploration and metallurgical results for Cummins Range in this report were reported by the
Company in accordance with Listing Rule 5.7. The Company confirms it is not aware of any new
information or data that materially affects the information included in the previous announcements.
The mineral resource estimate in this report were reported by the Company in accordance with Listing
Rule 5.8 on 1 May 2023 (prior year resource) and 25 January 2024 (current year resource). The
Company confirms it is not aware of any new information or data that materially affects the
information included in the previous announcements and that all material assumptions and technical
parameters underpinning the estimates in the previous announcements continue to apply and have
not materially changed.
80
Schedule of Mining Tenements
As at 30 June 2024, the Company had interests in granted mining tenements as set out below:
Australian Tenement Schedule
State
Project
Tenement No
RareX
Interest
Note
WA
Cummins Range
E80/5092
100%
Rare Earths and Phosphate
WA
Cummins Range Extension
E80/5372
100%
WA
Khaleesi
E39/2409
100%
Niobium and Rare Earths
WA
Mt Mansbridge
E80/5430
100%
Heavy Rare Earths
WA
Red Dragon
E39/2213
100%
Rare Earths
Moroccan Tenement Schedule
Licence Name
Licence No
RareX interest
Note
Tizi Belhaj
234 08 79
20%
Divestment of these
tenements is
underway
Bou Amzil
233 88 04
20%
Imdere
233 94 05
20%
81
ASX Additional Information
Corporate Governance
RareX Limited’s Corporate Governance Statement for FY2024 is available on the Company’s website
www.rarex.com.au
Shareholder Information
The following information is based on share registry information processed up to 30 August 2024.
Distribution of Fully Paid Ordinary Shares
The number of holders, by size of holding, for quoted securities in the Company is:
Spread of
Holders
Number of
Holders
Number of
Shares
Number of
Holders
Number of
Options
1 – 1,000
271
77,793
1
1
1,001 – 5,000
470
1,793,384
0
0
5,001 – 10,000
809
6,626,576
0
0
10,001 – 100,000
2,519
105,503,653
41
1,840,047
100,001 and over
1,050
676,130,144
70
48,159,982
Total
5,119
790,131,550
112
50,000,030
There are 2,925 holders of unmarketable parcels of ordinary shares comprising a total of 38,070,499
shares amounting to 4.82% of issued shares. There are 70 holders of unmarketable parcels of quoted
options exercisable at $0.0675 each and expiring on 26 May 2025 comprising a total of 4,926,822
options amounting to 9.85% of issued quoted options.
There are 790,11,550 ordinary fully paid shares and 50,000,030 options currently listed and trading on
the Australian Securities Exchange. There is no current on-market buy back taking place.
Substantial Holders
The Company notes the following substantial shareholders:
Substantial Shareholder
Number Held
Mr Simon (Sui Hee) Lee
43,246,210
Voting Rights - Fully Paid Ordinary Shares
Every shareholder present in person or by proxy, attorney or representative has one vote on a show of
hands, and on a poll, one vote for each fully paid share.
82
Twenty Largest Holders of Shares
Shareholder
Number Held
% of
Issued
Shares
1
MR SIMON (SUI HEE) LEE
43,246,210
5.47
2
MR JEREMY KIM ROBINSON
21,571,149
2.73
3
CHETCUTI HOLDINGS PTY LTD
18,055,789
2.29
4
CITICORP NOMINEES PTY LIMITED
17,741,273
2.25
5
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
15,875,766
2.01
6
QUALITY LIFE PTY LTD
11,323,574
1.43
7
MR BRETT JOHN HOLDSWORTH
9,460,921
1.20
8
SWANCAVE PTY LTD
8,500,000
1.08
9
P & N BURKE INVESTMENTS PTY LTD
8,500,000
1.08
10
BNP PARIBAS NOMINEES PTY LTD
7,879,439
1.00
11
INKESE PTY LTD
7,500,000
0.95
12
CHURCHILL STRATEGIC INVESTMENTS GROUP PTY LTD
6,666,667
0.84
13
MR KIM ROBINSON
6,114,706
0.77
14
MR ROBERT GILBERT JOHNS
5,555,000
0.70
15
BNP PARIBAS NOMINEES PTY LTD
5,519,094
0.70
16
MR MICHELE PARRELLA
5,500,000
0.70
17
C&T MITCHELL SUPER PTY LTD
5,371,428
0.68
18
MR MAXWELL ALFRED KIPPE
5,200,000
0.66
19
SUSTAINABLE MINERALS PTY LTD
5,128,906
0.65
20
LOJATE PTY LTD
5,000,000
0.63
Total
229,309,922
29.02
Total Issued Shares
790,131,550
100.00
83
Twenty Largest Holders of Quoted Options
Optionholder
Number Held
% of
Issued
Options
1
CITICORP NOMINEES PTY LIMITED
4,166,668
8.33
2
CHURCHILL STRATEGIC INVESTMENTS GROUP PTY LTD
3,333,334
6.67
3
M & K KORKIDAS PTY LTD
2,500,000
5.00
4
SUNLORA PTY LTD
2,500,000
5.00
5
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
2,394,443
4.79
6
MRS JULIE CAROL FIDLER
2,000,000
4.00
7
SMONGO PTY LTD
2,000,000
4.00
8
MR RICHARD JOHN PORTLOCK &
MRS ELIZABETH MARY PORTLOCK
2,000,000
4.00
9
HAWKSBURN CAPITAL PTE LTD
1,666,667
3.33
10
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED - A/C 2
1,444,446
2.89
11
MORGAN STANLEY AUSTRALIA SECURITIES (NOMINEE) PTY
LIMITED
1,444,445
2.89
12
NYSHA INVESTMENTS PTY LTD
1,166,667
2.33
13
GOFFACAN PTY LTD
1,146,634
2.29
14
MR NICHOLAS MATTHEW THORNTON
1,000,000
2.00
15
MS REBECCA ANNE MELVILLE
1,000,000
2.00
16
VIVRE INVESTMENTS PTY LTD
907,868
1.82
17
CERTANE CT PTY LTD
833,334
1.67
18
CLARKSON'S BOATHOUSE PTY LTD
833,334
1.67
19
EQUITY TRUSTEES LIMITED
722,223
1.44
20
MRS CHERYL KAYE YOUNG &
MR JOHN ALEXANDER YOUNG
633,334
1.27
20
MS LU ZHANG
611,111
1.22
Total
37,635,066
75.27
Total Issued Options
50,000,030
100.00
84
Unquoted Equity Securities
Quantity
Class & Vesting conditions
4,500,000
Options exercisable at $0.10 each on or before 1 March 2026
2,000,000
Performance rights vesting on 1Mt contained TREO resource at Cummins Range and
24 months service
6,000,000
Performance rights vesting on granting of mining licence at Cummins Range and 24
months service
6,500,000
Performance rights vesting on positive PFS for Cummins Range and 24 months
service
500,000
Performance rights vesting on DFS for Cummins Range and 24 months service
Holders of Unquoted Securities Holding 20% or More of Each Class
Class
Holder
Number
Options exercisable at $0.10 each on or before 1
March 2026
Mr Danny Goeman
4,500,000
Performance rights vesting on 1Mt contained TREO
resource at Cummins Range and 24 months service
Mr Alastair Roger Harvey
Mr Kit Hodgson
Mr Damien Krebs
Ms Lu Zhang
500,000
500,000
500,000
500,000
Performance rights vesting on granting of mining
licence at Cummins Range and 24 months service
Ms Toni Louise Gianatti
Louise Rebbecca Scott
2,000,000
1,500,000
Performance rights vesting on positive PFS for
Cummins Range and 24 months service
Ms Toni Louise Gianatti
Louise Rebbecca Scott
2,000,000
1,500,000
Performance rights vesting on DFS for Cummins
Range and 24 months service
Mr Kay Hofmann
500,000