Annual Report
2014
DIRECTORS
AUSTRALIAN BUSINESS NUMBER
90 135 531 341
Stephen Bizzell
David Christensen
Geoffrey McConachy
Andrew Martin
Chris Anderson
SECRETARY
Angelo Gaudio
ASX Code: AOE
ADMINISTRATION AND REGISTERED
OFFICE
SHARE REGISTRY
36 North Terrace
Kent Town SA 5067
Phone: + 61 8 8363 6989
Fax: +61 8 8363 4989
Website: www.renascor.com.au
Link Market Services Limited
ANZ Building
Level 15, 324 Queen Street
Brisbane Qld 4000
Phone: +61 2 8280 7454
Fax: +61 2 92870303
SOLICITORS
AUDITORS
McDonald Steed McGrath Lawyers
11-13 Gilbert St
Adelaide SA 5000
Phone: +61 8 8161 5088
Fax: +61 8 8410 7266
BDO Audit (SA) Pty Ltd
Level 7, BDO Centre
420 King W illiam Street
Adelaide SA 5000
Phone: +61 8 7324 6000
Fax: +61 8 7324 6111
HopgoodGanim Lawyers
Level 8, W aterfront Place
1 Eagle Street
Brisbane Qld 4000
Phone: + 61 7 3024 0000
Fax: +61 7 3024 0300
Competent Persons Statement
The exploration results reported herein, insofar as they relate to mineralisation, are based on information
compiled by Mr G. W. McConachy (fellow of the Australasian Institute of Mining and Metallurgy) who is a
director of Renascor. Mr McConachy has sufficient experience relevant to the style of mineralisation and
type of deposits being considered to qualify as a competent pers on as defined by the 2012 edition of the
Australasian code for reporting of exploration results, mineral resources and ore reserves (the JORC c ode,
2012 edition). Mr McConachy consents to the inclusion in the report of the matters based on his
information in the form and context in which it appears.
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Renascor Resources Limited
Annual Report June 2014
Contents
Chairman’s letter to shareholders
Review of operations
Directors' report
Auditor's independence declaration
Shareholder information
Corporate governance statement
Financial statements
Consolidated statement of profit or loss and other comprehensive income for the year ended 30 June 2014
Consolidated statement of financial position as at 30 June 2014
Consolidated statement of changes in equity for the year ended 30 June 2014
Consolidated statement of cash flows for the year ended 30 June 2014
Notes to the consolidated financial statements for the year ended 30 June 2014
Directors' declaration
Independent auditor's report to the members
These financial statements are the consolidated financial statements of the consolidated entity consisting of
Renascor Resources Limited and its subsidiaries. The financial statements are presented in the Australian
currency.
Renascor Resources Limited is a company limited by shares, listed on the Australian Securities Exchange (ASX)
under the code "RNU" and incorporated and domiciled in Australia. Its registered office and principal place of
business is:
Renascor Resources Limited
36 North Terrace
Kent Town SA 5067
A description of the nature of the consolidated entity's operations and its principal activities is included in the
review of operations on pages 2 to 14 and in the directors' report on pages 15 to 28, both of which are not part of
these financial statements.
The financial statements were authorised for issue by the directors on 30 September 2014. The directors have
the power to amend and reissue the financial statements.
Through the use of the internet, we have ensured that our corporate reporting is timely and complete. All press
releases, financial statements and other information are available on our website:
www.renascor.com.au.
1 | RENASCOR RESOURCES LIMITED Annual Report 2014
Chairman’s letter to shareholders
Chairman’s Letter to Shareholders
Dear Shareholders,
It is with great pleasure that I present Renascor’s Annual Report for the year ended 30 June 2014.
Notwithstanding continued difficult conditions for junior explorers on the Australian share market, Renascor
made a major exploration breakthrough during the year with multiple intersections of high-grade copper in our
first drill programs at our Eastern Eyre project in the southern portion of South Australia’s Olympic Dam copper
belt. Whilst this significant progress has not been fully reflected in our current share price, there is strong
reason to believe upcoming exploration programs at Eastern Eyre may provide a catalyst for the re-rating of the
company by the equity markets.
Our strategy has, and will continue to, focus on prospects for near-term, economic discoveries on projects
where we are able to apply our understanding of local geology and innovative, modern exploration techniques
to quickly pass into cost-effective, targeted drill campaigns. During the year this strategy led us to focus on
our Eastern Eyre project, where we identified multiple, highly prospective copper prospects that had previously
been subject to an exploration prohibition. After negotiation with the relevant stakeholders, this access ban
was lifted during the year, permitting Renascor to undertake comprehensive exploration in the highly
prospective area for the first time in over ten years.
At our 1050 East prospect, the first prospect we drilled in the project area, we discovered high-grade
copper-cobalt-silver mineralisation, with results including 13m @ 1.45% Cu, 66 ppm silver and 0.17% cobalt
(from 215m), including a massive sulphide interval of 8m at 2.2% Cu, 92 ppm silver and 0.26% cobalt (from
217m). Renascor considers the 1050 East discovery to represent a significant new style of copper
mineralisation in the Olympic Dam domain with high potential to deliver an economic copper resource. From
follow-up drilling, we have now identified an expansive copper-mineralised system with several intersections of
high-grade copper and opportunities for extensions along-strike and at depth.
In addition, we have established a pipeline of high quality, drill-ready exploration prospects within the Eastern
Eyre project area proximate to 1050 East. The discovery at 1050 East has highlighted the importance of the
Roopena-Angle Dam fault system, which extends through the project area for approximately 40 kilometres, as
a potential transport system and host for extensive copper mineralisation, including the type intersected at
1050 East. As we continue drilling in the project area, we expect these prospects to provide additional
opportunities to locate large-scale copper ore bodies.
We have maintained a strong exploration portfolio. This portfolio includes our Warrior and Frome uranium
projects, where our strategy has been to limit exploration spending, while maintaining drill-ready exploration
projects that offer opportunities for economic discoveries either under present market conditions or in the event
of improved investor sentiment toward uranium. During the year, through acquisition, joint venture and
applications for mineral exploration licences, we added adjacent tenure to several of our projects, including the
Eastern Eyre, Olary and Gairdner projects. To limit non-essential expenditure, we have also relinquished
tenements considered less prospective. Our new tenements, together with our Eastern Eyre and other projects,
provide us with a strong pipeline of potential projects for future growth and development.
In formulating and executing our strategy, we have taken into account the uncertainty and volatility in the global
markets over the past year. We have minimised cash costs by focusing on accessible, near- surface projects,
where we can quickly advance toward targeted, cost-effective drill programs. We have further attempted to
minimise costs by reducing personnel costs, including a 20% reduction in salary for all employees. As a result
of these measures, we believe we are in a strong position to benefit from our significant work to date, as we
continue to advance our exploration programs in an efficient manner.
On behalf on my Board and fellow shareholders, I thank our Managing Director, David Christensen and the
entire Renascor team for their dedicated work during an exciting and challenging year. I also extend my
sincere thanks to you, our shareholders, for your continued support.
Yours faithfully,
Stephen Bizzell
Chairman
Review of operations
Annual Report 2014 RENASCOR RESOURCES LIMITED | 2
Review of Operations
Renascor Resources Limited (Renascor) is an Australian exploration company focused on the discovery and
development of economically viable deposits containing copper, gold, uranium and other minerals. Renascor
holds multiple exploration licenses, with activity directed particularly toward projects located in established
mineral provinces of South Australia.
Renascor is an active explorer, focused on quickly advancing prospects to the drill-phase and thereafter
providing shareholders with opportunities for significant value appreciation upon successful drill results. We
are based in South Australia, where in previous roles, our experienced team has participated directly in the
discovery and development of several significant deposits.
During the year, we made a major breakthrough at our Eastern Eyre project in the southern portion of South
Australia’s Olympic Dam copper belt. At our 1050 East prospect, the first prospect we drilled in the project
area, we discovered high-grade copper-cobalt-silver mineralisation, with results including 13m @ 1.45% Cu, 66
ppm silver and 0.17% cobalt (from 215m), including a massive sulphide interval of 8m at 2.2% Cu, 92 ppm
silver and 0.26% cobalt (from 217m). Renascor considers the 1050 East discovery to represent a significant
new style of copper mineralisation in the Olympic Dam domain with high potential to deliver an economic
copper resource.
As a result of the positive initial results in our Eastern Eyre project, a significant portion of our exploration effort
during the year was directed toward advancing our 1050 East prospect and identifying similar opportunities in
the project area. Within the 1050 East area, we undertook exploration programs aimed at locating
extensions along-strike and at depth from the high-grade copper intersections. These programs included an
induced polarisation (IP) survey, ground and drill-hole electromagnetic (EM) surveys and geochemical soil
sampling programs, as well as scout drilling. We identified a massive sulphide zone in which limited
basement drilling has intersected massive sulphide development or ore-grade (+1.0%) copper in nine of the
eleven holes drilled to depths greater than 125m. The massive sulphide zone sits within a larger halo of
elevated (+0.10%) near-surface copper, as defined by shallow (less than 125 metres) drilling. Renascor
considers the presence of such widespread copper mineralisation in the 1050 East area to suggest the
prospect area hosts an extensive copper system, with strong potential to host an economic ore body.
The discovery of high-grade copper at 1050 East has also highlighted the significance of the Roopena-Angle
Dam fault system, which extends through the project area for approximately 40 kilometres, as a potential
transport system and host for extensive copper mineralisation, including the type intersected at 1050 East.
During the year, Renascor completed evaluation of historical exploration results and conducted on site surveys
of the project area. This resulted in the identification of multiple drill targets that Renascor considers highly
prospective for large-scale copper mineralisation. Renascor has also expanded the Eastern Eyre project area
by acquiring an option that includes an area extending immediately north from 1050 East through the targeted
Roopena-Angle Dam fault and that hosts additional drill-ready targets.
We have maintained at low-cost our interest in uranium exploration projects. Our strategy on uranium has
been to limit exploration spending, while maintaining drill-ready exploration projects that offer opportunities for
economic discoveries either under present market conditions or in the event of improved investor sentiment
toward uranium. During the year, we completed evaluation work on two low-cost projects acquired last year:
the historic Warrior uranium project in the Central Gawler Craton and our Frome project in the uranium-rich
Frome Basin of South Australia. As a result of this work, we have drill-ready exploration programs prepared.
We have maintained a strong exploration portfolio. During the year, through acquisition, joint venture and
applications for mineral exploration licences, we added adjacent tenure to several of our projects, including the
Eastern Eyre, Olary and Gairdner projects. To limit non-essential expenditure, we have also relinquished
tenements considered less prospective. Our new tenements, together with our active reconnaissance
exploration projects, provide us with a strong pipeline of potential projects for future growth and development.
We are delighted to report that our health and safety record has been very strong, with no reportable events
and no workdays lost due to accidents. Renascor is committed to keeping a safe workplace and ensuring that
all of our employees and contractors remain vigilant to health and safety issues. We will continue to monitor
our health and safety management systems to minimise risks, incidents and injuries.
In the past year, we have had opportunities to engage positively with key groups with interests in the areas
covered by our mineral tenements, including landowners, traditional owners and the Government. We remain
focused on fostering strong working relationships with these groups, as well as all stakeholders, to deliver
positive outcomes for all concerned as we move forward in the coming year.
3 | RENASCOR RESOURCES LIMITED Annual Report 2014
Review of operations
Key Project Review
Project
Prospect(s)
Location
Primary target(s)
Status
Eastern
Eyre
1050 East
Olympic Dam
copper belt,
Southern Gawler
Craton (SA)
Copper
Maiden drill program intersects
extensive copper mineralisation
Follow-up diamond drilling
intersects multiple high-grade,
massive sulphide intersections
Massive sulphide target zone
defined
Widespread elevated copper
halo defined
Follow-on drill targets for
additional massive sulphide
development identified
Eastern
Eyre
Nilginee,
Knights,
Highway
Olympic Dam
copper belt,
Southern Gawler
Craton (SA)
Copper/IOCG drill targets
identified
Copper, IOCG
Surface sampling commenced to
prioritise for subsequent
drill-testing
Eastern
Eyre
Ozone, Laura
Olympic Dam
copper belt,
Southern Gawler
Craton (SA)
Copper, IOCG
Option agreement entered into to
acquire tenements
Data review completed
Drill targets identified
Eastern
Eyre
McMahons,
Cocoa Dam,
others
Olympic Dam
copper belt,
Southern Gawler
Craton (SA)
Copper
Warrior
Multiple
Central Gawler
Craton (SA)
Sandstone-hosted
uranium
Frome
Multiple
Frome Basin
(SA)
Sandstone-hosted
uranium
Copper drill targets identified
Continuation of mineralised fault
system from 1050 East
Ground surveys commenced to
prioritise for subsequent
drill-testing
Data review completed on
advanced uranium project
Drill targets identified
Review of historical drill data
completed
Review of geophysical data
completed
Drill targets identified
Farina
Callana
Adelaide Fold
Belt
(SA)
Sedimentary copper
Surface sampling completed
Elevated copper and gold
identified
Review of operations
Annual Report 2014 RENASCOR RESOURCES LIMITED | 4
Figure 1. South Australian Project Map
5 | RENASCOR RESOURCES LIMITED Annual Report 2014
Review of operations
Eastern Eyre
Location:
Southern Gawler Craton (South Australia)
Tenements:
ELs 4721, 5012 and 5236 (100%) and EL 5400 and 5401 (option to acquire 100%)
Area:
Target:
1,534 km2
Copper
At our 1050 East prospect, the first prospect drilled in the Eastern Eyre project area, Renascor intersected
high-grade copper-cobalt-silver mineralisation, with results including 13m @ 1.45% copper, 66 ppm silver and
0.17% cobalt (from 215m), including a massive sulphide interval of 8m at 2.2% copper, 92 ppm silver and
0.26% cobalt (from 217m). During the past year, exploration activity at Eastern Eyre was focused on the 1050
East area and areas along-strike offering similar potential for high-grade copper mineralisation.
Figure 2. Eastern Eyre project, showing prospect locations
Review of operations
Annual Report 2014 RENASCOR RESOURCES LIMITED | 6
Eastern Eyre (continued)
Overview
Renascor’s exploration at the Eastern Eyre project is targeting large-scale copper deposits within the southern
portion of the Olympic Dam copper belt. See Figure 3. The Olympic Dam corridor is generally considered to be
among the world’s most prospective target areas for copper deposits, hosting the massive Olympic Dam deposit,
as well as other large-scale copper deposits, including Prominent Hill and Carrapateena to the north of the project
area and the Hillside deposit and extensive historical copper mining district of Moonta to the south. While large
target zones of the Olympic Dam corridor are often located far from infrastructure and in areas with deep cover
sequences, Renascor’s project area is readily accessible, with basement targets from surface to approximately
200m depth, amongst the shallowest targets in the Olympic Dam corridor.
in
to
its
favorable
location,
In addition
Renascor’s project area benefits
from
widespread copper mineralisation intersected
from historical drilling in several prospect
areas located adjacent to the Roopena-Angle
Dam fault zone. The majority of these
prospects were targeted from the late 1960s
through the 1980s using geochemical surface
sampling, followed by shallow drilling. The
presence of multiple zones of copper
mineralisation suggests to Renascor that the
Roopena-Angle Dam fault zone represents a
zone of extensive hydrothermal alteration.
The majority of the historical exploration
programs
the project area generally
bypassed this faulting zone, instead focusing
on the areas to the west, where soil sampling
provided an effective targeting mechanism.
The discovery by Rex Minerals (ASX: RXM) in
2009 of the Hillside copper deposit to the
south of the project area has reinforced the
the
importance of
in
deposition of ore bodies.
Accordingly,
Renascor considers targets located proximate
to the Roopena-Angle Dam fault to represent
particularly attractive (and often untested)
the
targets.
previously
the
faulting zone, a major focus of Renascor’s
initial exploration efforts has been
the
Roopena-Angle Dam fault zone.
to assessing
targets east of
In addition
identified
faulting zone
the
Figure 3. Olympic Dam copper belt, showing location of
Eastern Eyre project and significant mineral deposits
Prior to Renascor’s recent activity in the project area, an additional factor hindered exploration, contributing to the
lack of drill-testing performed over highly prospective areas. Dating prior to the Hillside discovery in 2009, the
Department of Defence has sought to expand its Cultana Training Area, located to the east of Renascor’s Eastern
Eyre project, into areas covered by portions of the project area extending west over the Angle Dam fault zone into
Renascor’s EL 5012. See Figure 2. While Hillside’s discovery, as well as increased availability of geophysical
targeting to modern explorers, increased the attractiveness of prospects within the faulting zone of EL 5012, the
Department of Defence’s expansion plans limited the ability to gain exploration access to test this area. In 2012,
the Department of Defence and the Government of South Australia agreed upon protocols for conducting
exploration within the Cultana Training Area and proposed extensions into EL 5012.
With these procedures clarified, Renascor commenced a program of pre-drilling exploration over the Eastern Eyre
project area. This program included an analysis of previous exploration data, including surface sampling, drill
intersections and aeromagnetic surveys, with a particular emphasis on a well-defined zone of surface copper
anomalism as defined by rotary air blast (RAB) drilling in an area immediately adjacent to the Roopena-Angle Dam
fault structure. Amongst these historical targets, Renascor identified multiple prospects, which evidenced both
significant copper geochemistry from previous drilling, as well as prospectivity for proving up economic copper
deposits through additional drilling in untested areas defined by zones of anomalous copper at surface. Renascor
subsequently undertook geophysical surveys, including a detailed airborne EM survey over the RAB zone, and
identified 1050 East and other targets for first-pass drilling.
7 | RENASCOR RESOURCES LIMITED Annual Report 2014
Review of operations
Eastern Eyre (continued)
1050 East
In September 2013, Renascor commenced its maiden drilling campaign at Eastern Eyre, completing 1,150 metres
of reverse circulation (RC) drilling. The primary prospect targeted in this initial drill program was 1050 East.
Significant results included 44m at 0.61% copper, 311 ppm cobalt and 24 ppm silver from 172m to end-of-hole in
hole EERC003 on Section 6374400N. A follow-up 1,100 metre diamond drilling program confirmed several
intersections of high-grade copper-cobalt-silver over Section 6374400N. See Figure 4. Key results include:
13m @ 1.45% copper, 66 ppm silver and 0.17% cobalt (from 215m) in hole EEDD012, including 8m
at 2.2% copper, 92 ppm silver and 0.26% cobalt (see also Figure 5),
47m @ 0.59% copper, 55 ppm silver and 0.03% cobalt (from 172m) in hole EERCDD003, including
2m at 3.5% copper, 142 ppm silver and 0.03% cobalt, and
4m @ 1.24% copper and 69 ppm silver (from 67m) and 9m @ 1.07 copper and 29 ppm silver (from
75m) in hole EEDD013.
Figure 4. Section 6374400N -- Drill traces, copper intervals and summary geology
Review of operations
Annual Report 2014 RENASCOR RESOURCES LIMITED | 8
Eastern Eyre (continued)
1050 East (continued)
Figure 5. Hole EEDD012 – portion of massive sulphide interval from 217.5 metres to 221.5 metres
Near-surface copper
halo (RC/RAB)
Existing zone of massive
sulphides from drill
intersections (~200m depth)
Following the discovery of high-grade
copper at 1050 East, Renascor initiated
follow-on exploration,
a program of
targeting extensions along-strike and
adjacent to the highly mineralized zones
over Section 6374400N. The program
included an
IP survey, ground and
drill-hole EM surveys, geochemical soil
sampling and an ~1,100 metre reverse
circulation drill program within a
chargeability zone identified adjacent to
high-grade
in
Renascor’s initial drill programs. As a
result, we have now identified a massive
sulphide zone in which limited basement
drilling has intersected massive sulphide
development or ore-grade
(+1.0%)
copper in nine of the eleven holes drilled
to depths greater than 125 metres. The
massive sulphide zone is centred on
Section 6374400N, sitting within a wider,
~1.5 kilometres halo of near-surface,
elevated
copper
(+0.10%)
mineralisation. See Figure 6.
intersections
copper
Figure 6. 1050 East prospect, showing
copper grade x thickness defined by
drill holes
Angle Dam
porphyry
9 | RENASCOR RESOURCES LIMITED Annual Report 2014
Review of operations
Eastern Eyre (continued)
1050 East (continued)
Within the massive sulphide zone, Renascor consider areas immediately adjacent to Section 6374400N to offer
high priority targets for continued massive sulphides development. As the next-step in identifying potentially
economic quantities of mineralised massive sulphides at 1050 East, Renascor intends to undertake drill-testing
below and adjacent to the massive sulphide intersections over Section 6374400N. See Figure 7. Renascor
interprets the mineralisation over Section 6374400N to extend down-dip from east to west, with multiple zones of
massive sulphides sitting in a larger mineralised copper zone. Upcoming drilling will include testing for potential
thickening of massive sulphide zones down dip from existing intersections.
47m @ 0.59% Cu, 55 ppm Ag and
0.03% Co (from 172m), incl:
2m at 3.5% Cu, 142 ppm Ag and
0.03% Co (EERCDD003)
10m @ 0.23% Cu (from
102m) and 16m @ 0.23% Cu
(from 116m) (EERC02)
12m @ 0.45% Cu and 15ppm Ag
(from 102m) and 16m @ 0.23%
Cu (from 103m) (EERC08)
13m at 1.45% Cu, 66 ppm Ag and
0.17% Co (from 215m), incl:
3m @ 4.0% Cu, 164 ppm Ag and
0.42% Co (EEDD012)
4m @ 1.24% Cu and 65.8 ppm Ag
(from 67m) and 9m @ 1.07% Cu and
29 ppm Ag (from 75m) (EEDD013)
3m @ 1.96% Cu, 24
ppm Ag and 0.11% Co
(from 171m) (SOC9)
40m @ 0.37% Cu, incl: 4m
@ 2.2% Cu and 51 ppm Ag
(from 80m) (FW1)
36m @ 0.33% Cu, incl: 2m
@ 1.0% Cu and 20 ppm Ag
(from 71m) (SOC7)
Figure 7. 1050 East massive sulphide zone, showing drill holes >125m, with significant
mineralized intersections
Review of operations
Annual Report 2014 RENASCOR RESOURCES LIMITED | 10
Eastern Eyre (continued)
Targets proximate to 1050 East
targets
In addition to the 1050 East area, Renascor
considers the regional Roopena-Angle Dam fault
structure (which extends through the 1050 East
area) and areas proximate to this structure to offer
highly prospective and untested
for
large-scale copper mineralisation. The discovery
of high-grade copper at 1050 East has highlighted
the significance of the Roopena-Angle Dam fault,
which extends
for
approximately 40 kilometres, as a potential
transport system and host for extensive copper
mineralisation. In the area extending immediately
south of 1050 East, Renascor has identified a
number of untested copper prospects along this
fault zone,
including drill-ready geophysical
prospects at McMahons and Cocoa Dam. See
Figure 8. Significantly, only limited exploration has
been conducted along this trend.
the project area
through
to
located
To the north of 1050 East, Renascor has identified
additional targets coincident with the extension of
the Roopena-Angle Dam fault structure. The
targets include two coincident gravity and magnetic
targets, Ozone and Laura. See Figure 9. The
structural setting of Ozone and Laura is comparable
iron-ore, copper-gold
to Renascor’s Spencer
(IOCG) prospect
the south with
Renscor’s EL 5012. At Spencer, extensive drilling
by WMC Resources Ltd in the 1990s outlined a
significant
copper-gold
mineralisation within variably sheared, altered and
hematite-silica veined and brecciated sediments
and granite. Geophysical expressions
the
Ozone and Laura prospects are considerably
stronger
those observed over known
mineralisation at Spencer, and Renascor therefore
considers
for
development of IOCG-style mineralisation in these
new prospect areas. Additional details regarding
Ozone and Laura are provided below:
this as a strong
IOCG-style
zone of
indication
than
in
Ozone.
Ozone
fault system.
is defined by a
northwest-orientated magnetic anomaly
located on the western margin of the Angle
A gravity
Dam-Roopena
anomaly of approximately 3 mGals
amplitude is defined adjacent and parallel to
a magnetic zone on its southern margin.
Historic drilling has intersected low level
copper mineralisation, but has yet to explain
the source of the geophysical anomalies.
Figure 8. Eastern Eyre project showing location of
McMahons and Cocoa Dam in relation to 1050 East
and other prospects
Laura
Ozone
Laura. The Laura prospect is defined by a
lower order elongated north-south orientated
magnetic anomaly within the Roopena fault
trend. A gravity anomaly of approximately 1
mGal amplitude is evident near the southern
end of the magnetic trend. An additional low
order gravity anomaly is evident to the east
of the magnetic zone, within the Angle Dam
fault trend. No drilling has been recorded in
either of these target areas.
Figure 9. Ozone and Laura Prospects - residual
gravity contours on aeromagnetic image showing
locations for untested gravity features
11 | RENASCOR RESOURCES LIMITED Annual Report 2014
Review of operations
Eastern Eyre (continued)
Targets proximate to 1050 East (continued)
Within the southern portion of the project area (see insert map in Figure 10), Renascor has identified an untested,
standout gravity target at its Nilginee prospect. The Nilginee gravity anomaly measures at least 3 milliGal
amplitude, over approximately 3 square kilometres. The anomaly centre is coincident with local circular magnetic
anomaly, within a broad zone of elevated gold geochemistry. The prospect area is located approximately 8
kilometres to the northeast of Arrium Limited’s (ASX: ARI) Moola copper prospect, where reports indicate an oxide
zone copper-gold mineralisation within a stratabound hematite-albite-calcite-chlorite breccia of at least 1.6
kilometre strike.
Next steps
Figure 10. Gravity image for Nilginee prospect
Renascor’s current work program is focused on identifying additional massive sulphide development within the
1050 East prospect area, as well as preparing additional targets within the Eastern Eyre Project for drill-testing in
the upcoming year. Current programs include follow-up diamond drilling at 1050 East and geochemical sampling
over additional prospects to prioritise for subsequent drill-testing.
Review of operations
Annual Report 2014 RENASCOR RESOURCES LIMITED | 12
Warrior
Location:
Gawler Craton (South Australia)
Tenements:
ELs 4570 and 4707 (100%, subject to 1% net smelter royalty)
Area:
Target:
416 km2
Sandstone-hosted uranium
Warrior is an historic uranium project discovered by PNC Exploration Pty Ltd (PNC), the former Japanese
government sponsored uranium exploration company, in the late 1970s. The project has been subject to
infrequent exploration since this time. Renascor acquired the project in 2013 in exchange for a residual net
smelter royalty of 1%. Renascor’s strategy at Warrior is to utilise the significant exploration work undertaken by
PNC in an era of low uranium prices to create low cost opportunities to identify a valuable resource under present
market conditions.
Figure 11. Warrior paleochannel, showing uranium mineralised zones (A through G) as identified by
PNC, over airborne EM conductivity image
Prior to relinquishing Warrior in the early 1980s, PNC identified seven discrete zones of elevated uranium
mineralisation. See Figure 11. Limited exploration efforts, largely undertaken between 2005 and 2008,
identified prospective extensions to the Warrior paleochannel, as well as confirming the presence of elevated
uranium throughout the project area.
Through the use of additional coring drilling and a prompt fission neutron (PFN) tool, in both the elevated uranium
zones discovered by PNC, as well as extensions to the paleochannels suggested by later exploration work,
Renascor considers Warrior to offer significant prospects for the delineation of an economic uranium ore body.
During the reporting period, Renascor completed an assessment of the existing drill data and confirmed a
significant variation between air core results and results obtained from the limited core sampling available from
adjacent holes. Renascor has identified targets for testing using core drilling and rotary mud drilling with a PFN
probe. Renascor anticipates commencing drill-testing following indications of a recovery in the uranium price.
13 | RENASCOR RESOURCES LIMITED Annual Report 2014
Review of operations
Frome
Location:
Tenements:
Area:
Target:
Frome Basin (South Australia)
ELs 5322, 5323, 5324, 5325, 5326, 4584, 4585, 4586 and 4672 (100%, subject to net
smelter royalty of 0.5%-2%)
4,053km2
Sandstone-hosted uranium
The Frome project is major strategic land position in the uranium-rich Frome Basin of South Australia.
Renascor’s tenements cover an extensive area, within a basin that hosts several significant uranium deposits.
These deposits include the Beverley uranium mine (46.3 million pounds @ 0.27% U3O8), as well as recently
discovered uranium deposits at Four Mile (70.5 million pounds @ 0.33% U3O8) and Beverley North and
Pepegoona (8.8 million pounds @ 0.18% U3O8).
During the reprting period, Renascor completed a comprehensive review of available historical exploration data,
including, in particular, existing airborne geophysical data and the limited drill undertaken to date. From this
analysis, Renascor had identified drill ready targets within both southern and northern block of tenements (see
Figure 12):
of
Form airborne EM data over the
tenements,
block
southern
Renascor has delineated a
fault
system that it considers comparable
to the Four Mile and Pepegonna
setting. This targeted fault system,
same
which
stratigraphy as Four Mile remains
relatively
offering
untested,
immediate drill-ready targets and the
potential for additional targets with
further EM data.
sits within
the
the
Renascor considers
terminal
splays of the Paralana fault system in
the northern block to offer parallels to
the Beverley uranium mine, with
strong potential for oxidation of fluids
within Tertiary sands.
Limited
drilling in this area has intersected
Renascor has
reduced zones.
identified drill-ready targets within the
western portion of the tenements,
proximate to the Paralana fault.
Figure 12 (right). Frome Basin Project, showing
location in relation to nearby uranium deposits
Renascor anticipates commencing drill-testing these targets following indications of a recovery in the uranium price.
Review of operations
Annual Report 2014 RENASCOR RESOURCES LIMITED | 14
Farina
Location:
Adelaide Fold Belt (South Australia)
Tenements:
ELs 4627, 4628, and 4822 (100%)
Area:
Target:
2,372 km2
Sedimentary copper
The Farina Project is made up a large, copper-prospective ground position within within South Australia’s Adelaide
Fold Belt. Renascor’s exploration program here is focused on identifying and drilling prospects for potentially
large tonnage Zambian Copper Belt-style, sedimentary copper deposits.
Figure 13. Farina Project, showing geology and historical copper occurrences
The sedimentary sequences of the Adelaide Fold Belt have long been recognised as distinctly analogous to the
copper-rich Zambian Copper Belt, offering prospects for large tonnage sedimentary copper deposits. In the 1970s
and early 1980s, some significant exploration programs adopted the Zambian-style sedimentary copper model
within Renascor’s current project area, resulting in intersections of significant ore-grade copper in areas identified
from detailed geological mapping and geochemical targeting.
Renascor’s review of historical exploration in the project area has resulted in the identification of a new copper
prospect, Callanna, located within an area of historical drilling on the northwest margin of exposed Adelaidean
rocks. In addition, Renascor identified two prospective sedimentary copper target zones where sediments are
inferred to exist beneath shallow cover and hence, amenable to EM surveying. Ground sampling undertaken
during the reporting period focused on historical copper occurrences at the Callanna prospect. Results included
strongly anomalous gold values (maximum 2.6 g/T gold) associated with oxide copper mineralisation. A single
hand-picked sample from a small working approximately 3 kilometres north of the main Callanna prospect area
returned 27% copper and 0.4 g/t gold with strongly anomalous rare earths and molybdenum, suggesting a possible
granitic intrusive association.
Further work programs in the project area are expected to include additional soil geochemistry and airborne EM
surveys prior to drill-testing.
15 | RENASCOR RESOURCES LIMITED Annual Report 2014
Directors’ Report
Directors' Report
Your directors present their report on the consolidated entity (referred to hereafter as the Group) consisting of
Renascor Resources Limited (referred to hereafter as the Parent Entity or the Company) and the entities it
controlled at the end of, or during, the year ended 30 June 2014.
Directors
The following persons were directors of the Company during the whole of the financial year and up to the date of
this report, unless otherwise stated:
David Christensen, Managing Director
David Christensen is an experienced mining executive, with recent successful experience managing exploration,
mining and marketing operations. Prior to founding the Company, David served as Chief Executive Officer of
Adelaide-based companies, Heathgate Resources Pty Ltd and Quasar Resource Pty Ltd. While at Heathgate
and Quasar, his responsibilities included overseeing Australian operations, including the Beverley uranium mine,
as well as the expansion into new projects with the discovery and development of the Four Mile deposit and
numerous joint ventures. David’s experience also includes serving as President of Nuclear Fuels Corporation, a
trading and marketing company, where he managed a multi-million dollar uranium portfolio and was responsible
for developing sales strategy, executing trades and swaps and negotiating all contracts. David commenced his
career as an attorney in California and London offices of international law firm Latham & Watkins, where he
advised on corporate finance and mergers and acquisitions. David was educated at Cornell University (BA,
Economics and Classical Civilizations), the University of California, Los Angeles (JD) and the Universitá di
Bologna (Fulbright Fellow).
Special responsibilities
Managing Director
Stephen Bizzell, Non-Executive Chairman
Stephen is Chairman of boutique corporate advisory and funds management group Bizzell Capital Partners. He
is highly experienced in the fields of corporate restructuring, debt and equity financing, mergers and acquisitions
and has over 20 years corporate finance and public company management experience in the resources sector in
Australia and Canada. Stephen was previously an Executive Director of Arrow Energy from 1999 to until its
acquisition in 2010 by Royal Dutch Shell and PetroChina for $3.5 billion. Stephen was instrumental in Arrow’s
corporate and commercial success and its growth from a junior explorer to a large integrated energy company.
Stephen spent his early career in the corporate finance division of Ernst & Young and the tax division of Coopers
& Lybrand and qualified as a Chartered Accountant. He is also a director of Queensland Treasury Corporation.
During the past three years Stephen has also served as a Director of the following ASX listed companies:
Laneway Resources Ltd (since 1996), Bow Energy Ltd (2004 to 2012), Dart Energy Ltd (2006 to 2013), Liquefied
Natural Gas Limited (from 2007 to 2010) (Alternate Director), Apollo Gas Ltd (2009 to 2011), Hot Rock Ltd (2009
to 2014), Diversa Ltd (since 2010), Stanmore Coal Ltd (since 2009), Titan Energy Services Ltd (since 2011),
Armour Energy Ltd (since 2012).
Special responsibilities
Chairman of the board
Member of the Audit and Risk Management Committee
Geoffrey McConachy, Executive Director
Geoffrey McConachy is an accomplished geologist with over thirty years of Australian and international
experience in the mining industry assessing a wide range of commodities. Prior to joining the Company,
Geoffrey worked for Heathgate Resources Pty Ltd and Quasar Resources Pty Ltd, where his roles included
Managing Director, Exploration. While at Heathgate and Quasar, Geoffrey led the exploration and development
team in the discovery, definition and evaluation of four uranium deposits including the Four Mile deposit, for which
he was co-honoured with the Prospector of the Year award from the Australian Association of Mining &
Exploration Companies. His experience includes instrumental roles in the discovery of the Fosterville gold deposit
in Victoria and the Potosi base metal deposit in New South Wales. Geoffrey was educated at the University of
New England (BSc, Geology and Geography) (Hons). He is a fellow of the Australasian Institute of Mining and
Metallurgy and a former Director of the Uranium Information Centre.
Special responsibilities
Member of the Audit and Risk Management Committee
Andrew Martin, Non-Executive Director
Andrew Martin is an executive with Deutsche Bank. Andrew has worked in a banking or advisory capacity for
over 15 years, generally within the infrastructure, utilities and natural resources sectors and in recent years, has
advised on transactions within these sectors. Andrew has a Bachelor of Economics (Hons) from the University
of Sydney and is a founder and Alternate Director of ASX listed Stanmore Coal Limited (having been a Director
from 2009 to 2014) and unlisted St Lucia Resources International Pty Limited.
Special responsibilities
Chairman of the Audit and Risk Management Committee
Directors’ Report
Annual Report 2014 RENASCOR RESOURCES LIMITED | 16
Directors (continued)
includes an
Chris Anderson, Non-Executive Director
Chris Anderson is an experienced geophysicist with over 30 years in mineral exploration in Australia and abroad.
His recent experience
the Carrapateena
copper-gold-uranium mine in South Australia. His earlier experience includes acting as Placer Pacific’s Exploration
the Kalkaroo
Manager
copper-gold-molybdenum deposit in South Australia. Mr Anderson’s significant international experience includes
recent geophysical interpretation in Zambia for Equinox Resources Ltd., and in Tanzania for North Mara Gold
Mines, where he contributed to the discovery of the one million ounce Gokona gold deposit. From 2005 to 2010
Chris served as executive director of ASX listed Stellar Resources Ltd., with exploration interests in South
Australia, New South Wales, Victoria and Tasmania.
for Eastern Australia, where he was
the 2005 discovery of
the discovery of
instrumental role
instrumental
in
in
Chris is a graduate of Adelaide University (BSc, Geology and Geophysics) (Hons), and is a fellow of Australasian
Institute of Mining and Metallurgy.
Special responsibilities
Nil
Chief Financial Officer and Company Secretary
Angelo Gaudio, Chief Financial Officer and Company Secretary
Angelo Gaudio has significant experience in senior financial positions within the resource sector. Prior to joining
the Company in 2011, he served as Vice President, Finance and Administration with Heathgate Resources Pty
Ltd, for which he managed accounting, financial affairs and procurement since the inception of the Beverley
uranium mine in 1999. Angelo is a qualified accountant with over thirty-five years of finance, management and
accounting experience. His expertise includes corporate finance, risk management and financial reporting, as
well as corporate development and Native Title relations. Angelo is a Fellow of the Institute of Public Accountants
and a Certificated member of Chartered Secretaries Australia.
Directors’ Shareholdings
The following table sets out each director’s shareholding as at 30 June 2014 and their relevant interest in shares,
options and performance rights in the Company as at the date of this report.
Director
David Christensen
Geoffrey McConachy
Andrew Martin
Stephen Bizzell
Chris Anderson
Fully Paid Ordinary Shares
Share options
12,200,000
6,300,000
20,500,000
11,358,190
6,900,000
Nil
Nil
Nil
Nil
Nil
Performance rights
840,000
810,000
-
-
-
Meetings of directors
The numbers of meetings of the Company's board of directors and of each board committee held during the year
ended 30 June 2014, and the numbers of meetings attended by each director were:
Stephen Bizzell
David Christensen
Geoffrey McConachy
Andrew Martin
Chris Anderson
Full meetings of
directors
A
Attended
9
9
9
9
9
B
Held
9
9
9
8
9
Audit Committee
meetings
A
Attended
2
N/A
2
2
N/A
B
Held
2
N/A
2
2
N/A
A = Number of meetings attended
B = Number of meetings held during the time the director held office or was a member of the committee during
the year
Principal activities
Renascor Resources is an Australian-based company focused on the discovery and development of economically
viable deposits containing copper, gold, uranium and other minerals. Renascor has an extensive tenement
portfolio, holding interests in key mineral provinces of South Australia and the Northern Territory. The principal
activity of the Group during the financial year was mineral exploration.
17 | RENASCOR RESOURCES LIMITED Annual Report 2014
Directors’ Report
Dividends - Renascor Resources Limited
There were no dividends declared or paid during the financial year (2013: Nil).
Review and results of operations
(a) Corporate and Financial
For the year ended 30 June 2014, the loss for the Group after providing for income tax was $1,513,910
(2013: $528,989). This included a write down of capitalised exploration and evaluation expenditure of
$827,101 and relinquishment of 17 tenements in the Northern Territory and South Australia.
A Placement of 11,690,000 fully paid ordinary shares made to sophisticated investors, directors and
executives was completed in June 2014 and raised $584,500 before costs.
A share purchase plan offer was made to eligible shareholders and was completed in June 2014 with the
issue of 9,910,000 fully paid ordinary shares raising $495,000 before costs.
At 30 June the company had cash and cash equivalents of $1,424,978.
(b) Exploration
The Company is an active explorer, focused on quickly advancing prospects to the drill-phase and
thereafter providing shareholders with opportunities for significant value appreciation upon successful
drill results.
As a result of the positive initial results in the Company’s Eastern Eyre project, a significant portion of the
it’s exploration effort during the year was directed toward advancing it’s 1050 East prospect. Renascor
undertook drilling programs aimed at locating extensions along-strike and at depth from the high-grade
copper intersections. Renascor also conducted exploration activities aimed at identifying similar
opportunities in the project area.
The Company has maintained a strong exploration portfolio, and through acquisition, joint venture and
applications for mineral exploration licences, the Company has added adjacent tenure to several of it’s
projects, including the Eastern Eyre, Olary and Gairdner projects. To limit non-essential expenditure, the
Company has also relinquished tenements considered less prospective. The new tenements, together
with active reconnaissance exploration projects, provide the Company with a strong pipeline of potential
projects for future growth and development.
Detailed information on the operations of the Group and its business strategies and prospects is set out
in the Review of Operations on pages 2 to 14 of this annual report
Significant changes in the state of affairs
There have been no significant changes in the Group’s state of affairs during the financial year other than have
been disclosed elsewhere in this report.
Matters subsequent to the end of the financial year
On 29 August 2014, 500,000 ordinary fully paid shares were issued to nominees of Currie Resources Pty Ltd as
consideration for exploration and access rights pursuant to an agreement that grants the Company an option to
acquire 100% of two exploration licences, EL 5400 and EL5401 tenements. These tenements form part of the
Eastern Eyre project.
In the opinion of the directors, no other matter or circumstance has arisen since 30 June 2014 that has significantly
affected, or may significantly affect:
the Group's operations in future financial years, or
the results of those operations in future financial years, or
the Group's state of affairs in future financial years.
Likely developments and expected results of operations
The Company will continue activities in the exploration, evaluation and acquisition of viable projects with the
objective of establishing a significant production business.
Environmental regulation and performance
The directors have put in place strategies and procedures to ensure that the Group manages its compliance with
environmental regulations. The directors are not aware of any breaches of any applicable environmental
regulations.
Directors’ Report
Annual Report 2014 RENASCOR RESOURCES LIMITED | 18
Remuneration report – audited
This remuneration report sets out remuneration information for the Group’s non-executive directors, executive
directors and other key management personnel of the Group and the Company.
(a) Key management personnel
The following persons were key management personnel of the Company during the financial year:
Name
Directors
Stephen Bizzell
David Christensen
Geoffrey McConachy
Andrew Martin
Chris Anderson
Position
Non-Executive Chairman
Managing Director
Executive Director
Non-Executive Director
Non-Executive Director
Other key management personnel
Angelo Gaudio
CFO and Company Secretary
(b) Principles used to determine the nature and amount of remuneration
Role of the remuneration committee
The board carries out the functions of the Remuneration and Nominations Committees and is responsible for
reviewing and negotiating the compensation arrangements of senior executives. It assesses the
appropriateness of the nature and amount of remuneration of such officers on a periodic basis by relevant
employment market conditions with the overall objective of ensuring maximum stakeholder benefit from the
retention of a high quality Board and executive team. The board is responsible for managing:
non-executive director fees;
executive remuneration (directors and other executives); and
the over-arching executive remuneration framework and incentive plan policies.
Their objective is to ensure that remuneration policies and structures are fair and competitive and aligned
with the long-term interests of the Group.
The Corporate Governance Statement provides further information on the role of this committee.
Relationship between remuneration and Group performance
During the financial year, the Group has generated losses as its principal activity was exploration for copper,
gold, uranium and other minerals within South Australia and Northern Territory. As the Group is still in the
exploration and evaluation stage, the link between remuneration, Group performance and shareholder wealth is
sometimes tenuous. Share prices are subject to the influence of metals prices and market sentiment toward
the sector, and as such increases or decreases may occur quite independent of executive performance or
remuneration.
The following table shows key performance indicators for the Group over the last three years since the Company
has been listed on the ASX:
Key performance indicators
2014
2013
2012
Profit/(Loss) for the year attributable to owners ($)
Basic earnings per share (cents)
Share price (cents) at year end
Increase/(decrease) in share price (%)
Total KMP incentives as a percentage of profit/(loss)
for the year (%)
($1,513,910)
(1.3)
3.7
5.7%
($528,989)
(0.5)
3.5
(32.7%)
($297,219)
(0.3)
5.2
(30.7%)
(2.4%)
(4.6%)
-
Non-executive directors
Fees and payments to non-executive directors reflect the demands which are made on, and the responsibilities
of, the directors. Non-executive directors' fees and payments are reviewed periodically by the board. The
Chair's fees are determined independently to the fees of non-executive directors based on comparative roles in
the external market. The Chair is not present at any discussions relating to determination of his own
remuneration.
Non-executive directors do not receive performance-based pay.
19 | RENASCOR RESOURCES LIMITED Annual Report 2014
Directors’ Report
Remuneration report – audited (continued)
(b)Principles used to determine the nature and amount of remuneration (continued)
Directors' fees
The current base fees were established with effect from 15 December 2010.
Non-executive directors' fees are determined within an aggregate directors' fee pool limit, which is periodically
recommended for approval by shareholders. The maximum currently stands at $350,000 per annum and was
approved by a special resolution of the members of the Company on 5 August 2010.
The following fees have applied:
Base fees
Chair
Other non-executive directors
From 1 July 2014
From 1 July 2013
$60,000 p.a.
$33,000-40,000 p.a.
$60,000 p.a.
$33,000-40,000 p.a.
Retirement allowances for non-executive directors
In line with guidance from the ASX Corporate Governance Council on non-executive directors' remuneration, no
retirement allowances are provided for non-executive directors. Superannuation contributions required under
the Australian superannuation guarantee legislation continue to be made as required and are deducted from the
directors' overall fee entitlements.
Executive pay
The objective of the Group’s executive reward framework is to ensure reward for performance is competitive and
appropriate for the results delivered. The framework aligns executive reward with achievement of strategic
objectives and the creation of value for shareholders, and conforms to market practice for delivery of reward.
The board ensures that executive reward satisfies the following key criteria for good reward governance
practices:
competitiveness and reasonableness;
acceptability to shareholders;
performance linkage / alignment of executive compensation;
transparency; and
capital management.
The Group has structured an executive remuneration framework that is market competitive and complementary
to the reward strategy of the organisation.
Alignment to shareholders' interests;
has economic profit as a core component of plan design;
focuses on sustained growth in shareholder wealth, consisting of dividends and growth in share price;
delivering constant return on assets as well as focusing the executive on key non-financial drivers of
value; and
attracts and retains high calibre executives.
Alignment to program participants' interests:
rewards capability and experience;
reflects competitive reward for contribution to growth in shareholder wealth;
provides a clear structure for earning rewards; and
provides recognition for contribution.
The framework provides a mix of fixed and long-term incentives.
The board carries out the functions of the Remuneration and Nominations Committees and is responsible for
reviewing and negotiating the compensation arrangements of senior executives. It assesses the appropriateness
of the nature and amount of remuneration of such officers on a periodic basis by relevant employment market
conditions with the overall objective of ensuring maximum stakeholder benefit from the retention of a high quality
board and executive team. The board manages remuneration and incentive policies and practices and
remuneration packages and other terms of employment for executive directors, other senior executives and
non-executive directors. The Corporate Governance Statement provides further information on the role of a
Remuneration committee.
The executive pay and reward framework has the following components:
base pay and benefits, including superannuation;
short-term incentive through a cash bonus may be determined by the board; and
long-term incentives through the issue of unlisted share options and performance rights.
The combination of these comprises an executive's total remuneration.
Directors’ Report
Annual Report 2014 RENASCOR RESOURCES LIMITED | 20
Remuneration report – audited (continued)
(c) Principles used to determine the nature and amount of remuneration (continued)
Base pay and benefits
Base pay and benefits are structured as a total employment cost package which may be delivered as a
combination of cash and prescribed non-financial benefits, at the executive’s discretion and subject to board
approval.
Executives are offered a competitive base pay that comprises the fixed component of pay and rewards to
ensure base pay is set to reflect the market for a comparable role. Base pay for executives is reviewed
periodically to ensure the executive's pay is competitive with the market.
There is no guaranteed base pay increase included in any of the executives’ contracts.
Benefits
Private health insurance benefits are provided to the Managing Director.
Superannuation
Retirement benefits are delivered via superannuation contributions required under the Australian
superannuation guarantee legislation. Other retirement benefits may be provided directly by the Group if
approved by shareholders.
Short-term incentives
The Company currently has no formal performance related remuneration policy which governs the payment
of annual cash bonuses upon meeting pre-determined performance targets.
Long-term incentives
Long-term incentives may be provided to directors, executives and consultants through the granting of
unlisted share options and or performance rights.
The granting of unlisted share options and performance rights is designed to provide long-term incentives for
executives to deliver long-term shareholder returns. The granting of such options and performance rights is
at the board's discretion and no individual has a contractual right to receive any guaranteed benefits. The
options are issued for nil consideration and have variable vesting dates, exercise prices and maturity dates,
i.e. last date to exercise the options.
The performance rights plan was approved by shareholders at the 2012 annual general meeting and is
designed to focus executives on delivering long-term shareholder return. Under the plan, participants are
granted rights to shares which will only vest if certain performance conditions are met and the participants are
still employed by the company at the end of the vesting period. Participation in the plan is at the absolute
discretion of the disinterested board members.
Vesting of the performance rights is subject to the following performance conditions:
a) Personal Key Performance Indicators (KPI) Condition - 25% of performance rights vest on achievement
of personal KPI’s measured by disinterested board members at their absolute discretion.
b) Corporate Share Performance (CSP) Condition – 75% of performance rights vest based on benchmark
comparison of total shareholder return (TSR), including share price growth compared to 11 selected
peer companies that are listed on the ASX (see list below) over a three year period.
Vesting will occur based on the company’s ranking with the peer group as follows:
TSR Rank
Less than 50th percentile
Between 50th and 67th percentile
Between 67th and 80th percentile
At or above 80th percentile
Proportion of performance rights that vest
0%
20%
50%
100%
Once vested, the performance rights are exercisable for a period of 7 years from the grant date. Options are
granted under the plan for no consideration.
21 | RENASCOR RESOURCES LIMITED Annual Report 2014
Directors’ Report
Remuneration report – audited (continued)
Principles used to determine the nature and amount of remuneration (continued)
Long-term incentives (continued)
For the corporate share performance (CSP) condition, the peer group of companies includes the following:
Uranium Equities Limited
Energia Minerals Limited
Toro Energy Limited
UraniumSA Limited
Energy & Minerals Australia Limited
Alligator Energy Limited
Minotaur Exploration Limited
Archer Exploration Limited
Helix Resources Limited
Mithril Resources Limited
Thundelarra Exploration Limited
The performance rights are issued for nil consideration and have variable vesting dates, subject to either
corporate share performance condition or personal KPI condition (and the maximum number of shares which
will be issued where the relevant conditions are fully satisfied which are converted on a one for one basis).
The table below outlines the number of performance rights proposed to be issued to each director and
executive, the number of performance rights subject to either the corporate share performance (CSP)
condition or the personal key performance indicator (KPI) condition (and the maximum number of Shares
which will be issued where the relevant conditions are fully satisfied).
Performance Rights
Recipient
David Christensen
Year 1
Year 2
Year 3
Total
CSP Performance Rights (75%)
210,000
210,000
210,000
630,000
KPI Performance Rights (25%)
70,000
70,000
70,000
210,000
Total
Geoffrey McConachy
280,000
280,000
280,000
840,000
CSP Performance Rights (75%)
202,500
202,500
202,500
607,500
KPI Performance Rights (25%)
67,500
67,500
67,500
202,500
Total
Angelo Gaudio
270,000
270,000
270,000
810,000
CSP Performance Rights (75%)
KPI Performance Rights (25%)
87,500
29,167
87,500
29,167
87,500
262,500
29,166
87,500
Total
116,667
116,667
116,666
350,000
(c) Details of remuneration
Amounts of remuneration
Details of the remuneration of the directors and the key management personnel of the Group (as defined in
AASB 124 Related Party Disclosures) are set out in the following tables.
The key management personnel of the Company includes the directors as per pages 15 and 16 above and
Angelo Gaudio, CFO and Company Secretary who has authority and responsibility in respect of planning,
directing and controlling activities of the Company and reports directly to the Managing Director.
Directors’ Report
Annual Report 2014 RENASCOR RESOURCES LIMITED | 22
Remuneration report – audited (continued)
(c) Details of remuneration (continued)
Key management personnel of the Company and the Group
2014
Name
Non-executive directors
Stephen Bizzell 1
Andrew Martin 1
Chris Anderson 1
Sub-total non-executive directors
Executive directors
David Christensen 2
Geoffrey McConachy 2
Other key management personnel
Angelo Gaudio 2
Sub-total executive directors and other
key management personnel
Total key management personnel
compensation
Short-term employee
benefits
Long-term
benefits
Cash
salary and
fees
$
Non-
monetary
benefits
$
Long
service
leave
$
Post-
employment
benefits
Super-
annuation
$
Share-
based
payments
Options and
performance
rights
$
Total
$
60,000
36,613
33,000
129,613
-
-
-
-
-
-
-
-
-
3,387
-
3,387
-
-
-
-
60,000
40,000
33,000
133,000
304,615
291,923
16,642
-
6,318
6,054
17,775
17,775
13,488 358,838
13,006 328,758
230,000
-
4,260
17,775
9,845 261,880
826,538
16,642
16,632
53,325
36,339 949,476
956,151
16,642
16,632
56,712
36,339 1,082,476
1 Subsequent to the completion of the current reporting period, it has been agreed (subject to shareholder approval)
that non-executive directors will receive 50% of their compensation in shares in the Company.
2 Subsequent to the completion of the current reporting period, the service agreements of each of Messrs
Christensen, McConachy and Gaudio have been amended to reduce remuneration by 20%, with a corresponding
decrease in time commitment to four days per week.
Key management personnel of the Company and the Group
2013
Name
Non-executive directors
Stephen Bizzell
Andrew Martin
Chris Anderson
Sub-total non-executive directors
Executive directors
David Christensen
Geoffrey McConachy
Other key management personnel
Angelo Gaudio
Sub-total executive directors and other
key management personnel
Total key management personnel
compensation
Short-term employee
benefits
Long-term
benefits
Post-
employmen
t
benefits
Share-
based
payments
Cash
salary and
fees
$
Non-
monetary
benefits
$
Long
service
leave
$
Super-
annuation
$
Options and
performance
rights
$
Total
$
60,000
36,697
34,000
130,697
-
-
-
-
-
-
-
-
-
3,303
-
3,303
-
-
-
-
60,000
40,000
34,000
134,000
300,000
287,500
16,137
-
3,334
3,195
16,470
16,470
12,253 348,194
11,816 318,981
230,000
-
2,261
16,470
-
248,731
817,500
16,137
8,790
49,410
24,069 915,906
948,197
16,137
8,790
52,713
24,069 1,049,906
23 | RENASCOR RESOURCES LIMITED Annual Report 2014
Directors’ Report
Remuneration report – audited (continued)
(c) Details of remuneration (continued)
The relative proportions of remuneration that are linked to performance and those that are fixed are as follows:
Name
Fixed remuneration
At risk - STI
2014
2013
2014
2013
At risk - LTI *
2014
2013
Non-executive directors of the Company
Stephen Bizzell
Andrew Martin
Chris Anderson
100%
100%
100%
100%
100%
100%
Executive directors of the Company
David Christensen
Geoffrey McConachy
96.2%
96.0%
96.5%
96.3%
-%
-%
-%
-%
-%
-%
-%
-%
-%
-%
-%
-%
-%
-%
-%
-%
3.8%
4.0%
3.5%
3.7%
Other key management personnel of the Group
Angelo Gaudio
96.2%
100%
-%
-%
3.8%
-%
* Since the long-term incentives are provided exclusively by way of options and performance rights, the
percentages disclosed also reflect the value of remuneration consisting of options and performance rights, based
on the value of options and performance rights expensed during the year.
(d) Bonuses and short-term incentives
Key management personnel and executives were not paid cash bonuses or performance-related bonuses
during the years ended 30 June 2014 and 2013.
(e) Service agreements
On appointment to the board, all non-executive directors enter into a service agreement with the Company in the
form of a letter of appointment. The letter summarises the board policies and terms, including compensation,
relevant to the office of director.
Remuneration and other terms of employment for the managing director, exploration director, chief financial officer
and the other key management personnel are also formalised in service agreements. Provisions of the
agreements relating to remuneration are set out below.
David Christensen, Managing Director, has an agreement with the Company for an indefinite term, subject to
six-months’ notice or a termination payment of six months. As at year ended 30 June 2014, his base salary,
exclusive of superannuation, was payable at a rate of $312,000 per annum. Subsequent to the completion of the
current reporting period, Mr Christensen’s service agreement was amended to reduce remuneration by 20%
(reducing to a per annum rate of $249,600), with a corresponding decrease in time commitment to four days per
week. The agreement provides for the payment of a private health insurance benefit and for a superannuation
entitlement of 9.5% from 1 July 2014, capped to the maximum contributions of the Superannuation Guarantee Act
(currently effective maximum contributions of $18,730 per annum for 2014-15).
Geoffrey McConachy, Exploration Director, has an agreement with the Company for an indefinite term, subject to
three-months’ notice or a termination payment of three months. As at year ended 30 June 2014, his base salary,
exclusive of superannuation, was payable at a rate of $299,000 per annum. Subsequent to the completion of the
current reporting period, Mr McConachy’s service agreement was amended to reduce remuneration by 20%
(reducing to a per annum rate of $239,200), with a corresponding decrease in time commitment to four days per
week. The agreement provides for a superannuation entitlement of 9.5% from 1 July 2014, capped to the
maximum contributions of the Superannuation Guarantee Act (currently effective maximum contributions of
$18,730 per annum for 2014-15).
Angelo Gaudio, Chief Financial Officer and Company Secretary, has an agreement with the Company for an
indefinite term, subject to three-months’ notice. As at year ended 30 June 2014, his base salary, exclusive of
superannuation, was payable at a rate of $230,000 per annum. Subsequent to the completion of the current
reporting period, Mr Gaudio’s service agreement was amended to reduce remuneration by 20% (reducing to a per
annum rate of $184,000), with a corresponding decrease in time commitment to four days per week. The
agreement provides for a superannuation entitlement of 9.5% from 1 July 2014, capped to the maximum
contributions of the Superannuation Guarantee Act (currently effective maximum contributions of $18,730 per
annum for 2014-15).
Directors’ Report
Annual Report 2014 RENASCOR RESOURCES LIMITED | 24
Remuneration report – audited (continued)
(f) Share-based compensation
During the financial year, the following share-based payment arrangements were granted for nil
consideration:
KPI based performance rights
Name
Approved
Year for
grant
Years in
which
rights may
vest
Number
of rights
approved
Fair Value
per right
at grant
date*
Value of
rights at
grant
date*
Director of the Company
David Christensen
Tranche 1b
Tranche 2b
Tranche 3b
Geoffrey McConachy Tranche 1b
Tranche 2b
Tranche 3b
Other key management personnel
Angelo Gaudio
Tranche 1b
Tranche 2b
Tranche 3b
2014
2014
2014
2014
2014
2014
2014
2014
2014
2014
2015
2016
2014
2015
2016
2014
2015
2016
70,000
70,000
70,000
67,500
67,500
67,500
$0.0520
$0.0520
$0.0520
$0.0520
$0.0520
$0.0520
$2,912
$2,912
$2,912
$2,808
$2,808
$2,808
29,167
29,167
29,167
$0.0520
$0.0520
$0.0520
$1,213
$1,213
$1,213
* The value of rights granted during the year differs to the expense recognised as part of each key management person’s
remuneration because this value is the grant date fair value calculated in accordance with AASB 2 Share-based
Payment.
The number of above rights granted is based on non-market performance conditions and will vest on
achievement of personal KPI’s measured by disinterested board members at their absolute discretion.
Total shareholder return based performance rights
Name
Approved
Year for
grant
Years in
which
rights may
vest
Number
of rights
approved
Value per
right at
grant
date*
Other key management personnel
Angelo Gaudio
Tranche 1a
Tranche 2a
Tranche 3a
2014
2014
2014
2014
2015
2016
87,500
87,500
87,500
$0.0231
$0.0299
$0.0338
Value of
rights at
grant
date*
$2,021
$2,616
$2,958
* The value of rights granted during the year differs to the expense recognised as part of each key management person’s
remuneration because this value is the grant date fair value calculated in accordance with AASB 2 Share-based
Payment.
The number of above rights granted is based on market vesting condition using a benchmark comparison
of total shareholder return (TSR) with 11 selected peer companies that are listed on the ASX over a three
year period.
The terms and conditions of each grant of performance rights affecting remuneration in the current or a
future reporting period are as follows:
Grant
Date
Vesting
Date
Expiry Date
Exercise
Price
Performance
achieved #
%
Vested
%
Forfeited
Tranche 1a
28 Feb 2014
28 Feb 2014
30 Nov 2019
$Nil
54th percentile
Tranche 1b
28 Feb 2014
28 Feb 2014
30 Nov 2019
$Nil
80% of KPI
20%
80%
Tranche 2a
28 Feb 2014
30 Jun 2014
30 Nov 2019
$Nil
To be determined
20%
Tranche 3a
28 Feb 2014
30 Jun 2015
30 Nov 2019
$Nil
To be determined
Tranche 2b
28 Feb 2014
30 Jun 2014
30 Nov 2019
$Nil
To be determined
Tranche 3b
28 Feb 2014
30 Jun 2015
30 Nov 2019
$Nil
To be determined
n/a
n/a
n/a
80%
20%
80%
n/a
n/a
n/a
# Subject to approval of disinterested board members a preliminary review of the CSP condition calculated that the TSR
Rank achieved for Year Ended 30 June 2014 is between 50th and 67th percentile indicating that 20% of the CSP
proportion of performance shares will vest.
25 | RENASCOR RESOURCES LIMITED Annual Report 2014
Directors’ Report
Remuneration report – audited (continued)
(g) Equity instruments held by key management personnel
Options holdings
Details of options held directly, indirectly or beneficially by key management personnel are as follows:*
2014
Name
Directors of the Company
Balance at
the start of
the year
No.
Granted during
the reporting
year as
compensation
No.
Exercised
during the
reporting year
No.
Expired
during the
year
No.
Balance at
the end of the
year
No.
Vested and
exercisable at the
end of the
reporting period
No.
1,600,000
David Christensen
Geoffrey McConachy 1,300,000
800,000
Andrew Martin
800,000
Stephen Bizzell
800,000
Chris Anderson
-
-
-
-
-
- (1,600,000) -
- (1,300,000) -
-
-
-
-
-
(800,000) - -
(800,000) - -
(800,000) - -
Other key management personnel of the Group
-
Angelo Gaudio
800,000
-
(800,000) - -
* Key management personnel include close family members and entities over which the key management person or
their close family members have direct or indirect control, joint control or significant influence.
Performance Rights holdings
Details of rights held directly, indirectly or beneficially by key management personnel are as follows:*
2014
Balance at
the start of
the year
No.
Name
Directors of the Company
David Christensen
Geoffrey McConachy
Andrew Martin
Stephen Bizzell
Chris Anderson
630,000
607,500
-
-
-
Approved to be
granted during
the reporting
year as
compensation
No.
210,000
202,500
-
-
-
Other key management personnel of the Group
350,000
Angelo Gaudio
-
Exercised
during the
reporting year
No.
Other
changes
during the
year
No.
Balance at
the end of the
year
No.
Vested and
exercisable at the
end of the
reporting period
No.#
-
-
-
-
-
-
(182,000)
(175,500)
-
-
-
658,000
634,500
-
-
-
98,800
94,500
-
-
-
(75,833)
274,167 40,834
* Key management personnel include close family members and entities over which the key management
person or their close family members have direct or indirect control, joint control or significant influence.
# All vested and exercisable rights vested during the year.
Directors’ Report
Annual Report 2014 RENASCOR RESOURCES LIMITED | 26
Remuneration report – audited (continued)
(g) Equity instruments held by key management personnel (continued)
Shareholdings
Details of equity instruments (other than options and rights) held directly, indirectly or beneficially by key
management personnel* are as follows. There were no shares granted during the reporting period as
compensation.
2014
Name
Directors of the Company
Ordinary shares
David Christensen
Geoffrey McConachy
Andrew Martin1
Stephen Bizzell
Chris Anderson
Granted
during
reporting year
as
compensation
Received
during the
year on the
exercise of
Performance
Rights
Balance at
the start of the
year
12,000,000
6,000,000
20,000,000
9,558,999
6,000,000
-
-
-
-
-
-
-
-
-
-
-
-
Other
changes
during the
year
200,000
300,000
500,000
1,799,191
900,000
Balance at
the end of the
year
12,200,000
6,300,000
20,500,000
11,358,190
6,900,000
200,000
6,215,000
Other key management personnel of the Group
Ordinary shares
Angelo Gaudio
6,015,000
1 Mr Martin is a non-executive director and is a director of SLRI Pty Ltd and St Lucia Capital Fund Pty Ltd, which
act as corporate trustees for trust funds which together are substantial (greater than 5%) shareholders in the
Company. Mr Martin is a beneficiary of a trust ultimately holding a more than 20% interest in these trust funds.
* Key management personnel include close family members and entities over which the key management person
or their close family members have direct or indirect control, joint control or significant influence.
(h) Other transactions with key management personnel
Mr G W McConachy and Mr C. Anderson are directors of Euro Exploration Services Pty Ltd (Euro). Euro has
provided the company with exploration services, geochemical sampling services as well as the provision of
geological personnel services during the year. The services provided are based on normal commercial terms and
conditions. During the financial year the Company incurred expenses of $87,402 (2013: $157,905) from Euro
which has been capitalised as Exploration Expenditure during the financial year. An amount of $9,944 (2013:
$13,172) was owing to Euro at 30 June 2014.
Mr C. Anderson is a director of Pondray Pty Ltd trading as CG Anderson & Associates (CGAA). CGAA has
provided geophysical services to the company. During the financial year the Company incurred expenses of
$103,234 (2013: $102,400) from CGAA of which $102,400 (2013: $99,070) has been capitalised as Exploration
Expenditure during the financial year. An amount of $24,513 (2013: $10,285) was owing to CGAA at 30 June 2014.
Mr S. Bizzell is a director of Bizzell Capital Partners Pty Ltd (BCP). BCP has provided corporate advisory services
to the company in relation to a capital raising. During the financial year the Company incurred expenses of $51,470
(2013: $Nil) from BCP which was included as a cost of the capital raising during the financial year. An amount of
$11,000 (2013: $Nil) was owing to BCP at 30 June 2014.
End of remuneration report - audited
27 | RENASCOR RESOURCES LIMITED Annual Report 2014
Directors’ Report
Shares under option
Unissued ordinary shares of the Company under option at the date of this report are as follows:
Date options granted
Expiry date
Exercise
price of
shares
Number under option
30 August 2010
27 October 2010
15 December 2010
17 February 2011
30 April 2012
31 December 2014
31 December 2014
$0.24
$0.24
31 December 2014
17 February 2015
30 April 2016
$0.24
$0.24
$0.054
2,000,000
700,000
2,000,000
750,000
750,000
6,200,000
Date performance rights approved
Expiry date
Exercise
price of
shares
Number of
Performance
Rights
30 November 2012*
28 February 2014*
30 November 2019
28 February 2021
$Nil
$Nil
1,650,000
350,000
2,000,000
* Performance rights granted as remuneration to the directors and the most highly remunerated officers
during the year. Details of options and performance rights granted to key management personnel are
disclosed on pages 24 to 26 above.
No ordinary shares of the Company were issued during the year ended 30 June 2014 on the exercise of
options or performance rights granted. No further shares have been issued since that date on the exercise
of options or performance rights granted.
Indemnification and insurance of directors, officers and auditor
The Company has established an insurance policy to indemnify all directors and officers against all
liabilities to a third party that may arise from their position as directors or officers of the Company and its
controlled entities, except where the liability arises out of conduct involving a lack of good faith.
During the financial year, the Company paid a premium in respect of a contract insuring directors,
secretaries and executive officers of the Company and its controlled entities against a liability incurred as
director, secretary or executive officer to the extent permitted by the Corporations Act 2001. The contract
of insurance prohibits disclosure of the nature of the liability and the amount of the premium.
The Company has not otherwise, during or since the end of the financial year, except to the extent
permitted by law, indemnified or agreed to indemnify an officer or auditor of the Company or any of its
controlled entities against a liability incurred as such an officer or auditor.
Non-audit services
During the financial year, the following fees for non-audit services were paid or payable to the auditor,
BDO, or their related practices:
Consolidated
30 June
2014
$
30 June
2013
$
Taxation services
Amounts paid to a related practice of BDO Audit (SA) Pty Ltd for tax
compliance and advisory services
Total remuneration for taxation services
16,493
16,493
9,000
9,000
Total fees for non-audit services
16,493
9,000
Directors’ Report
Annual Report 2014 RENASCOR RESOURCES LIMITED | 28
Non-audit services (continued)
The directors are satisfied that the provision of non-audit services, during the year, by the auditor (or by
another person or firm related to the auditor), is compatible with the general standard of independence for
auditors imposed by the Corporations Act 2001.
On the advice of the audit committee, the directors are satisfied that the provision of non-audit services by
the auditor, as set out above, did not compromise the auditor independence requirements of the
Corporations Act 2001 for the following reasons:
all non-audit services have been reviewed by the audit committee to ensure that they do not impact
the integrity and objectivity of the auditor; and
none of the non-audit services undermine the general principles relating to auditor independence as
set out in APES 110 Code of Ethics for Professional Accountants.
Proceedings on behalf of the Company
No person has applied to the Court under section 237 of the Corporations Act 2001 for leave to bring
proceedings on behalf of the Company, or to intervene in any proceedings to which the Company is a
party, for the purpose of taking responsibility on behalf of the Company for all or part of those proceedings.
No proceedings have been brought or intervened in on behalf of the Company with leave of the Court
under section 237 of the Corporations Act 2001.
Auditor’s Independence Declaration
A copy of the auditor's independence declaration as required under section 307C of the Corporations Act
2001 is set out on page 29
This report is made in accordance with a resolution of directors.
David Christensen
Director
Adelaide
Date: 30 September 2014
29 | RENASCOR RESOURCES LIMITED Annual Report 2014
Auditor’s independent declaration
Auditor’s independence declaration
Shareholder information
Annual Report 2014 RENASCOR RESOURCES LIMITED | 30
Renascor Resources Limited
Shareholder information
30 June 2014
The shareholder information set out below was applicable as at 25 August 2014.
A. Distribution of equity securities
Analysis of numbers of equity security holders by size of holding:
Holding
1
1,001
5,001
10,001
100,001
1000 *
5,000
10,000
100,000
-
-
-
-
and over
Ordinary shares
Shares
Options
5
23
77
274
161
540
-
-
-
-
6
6
-
-
-
-
14
14
* Share holdings of 10,000 shares or less is regarded as holding less than a marketable parcel of shares.
B. Equity security holders
Twenty largest quoted equity security holders
The names of the twenty largest holders of quoted equity securities are listed below:
Quoted equity securities
Name
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20 ALBIANO HOLDINGS PTY LTD
DAVID CHRISTENSEN
SLRI PTY LIMITED
ST LUCIA RESOURCES CAPITAL FUND PTY LIMITED
BIZZELL NOMINEES PTY LTD
CASALAMADA PTY LTD
GEOFFREY WILLIAM MCCONACHY
CANNC CONSULTING PTY LTD *
BCP ALPHA INVESTMENTS LIMITED *
CLASM PTY LTD *
R & C AUSTRALIA PTY LTD
CITICORP NOMINEES PTY LIMITED
NATIONAL NOMINEES LIMITED
HILTABA GOLD PTY LTD
REDLINK PTY LTD
KRAM NOMINEES PTY LTD
CF2 PTY LTD *
MRS TRACEY ANN MEZZINO
SIXTH ERRA PTY LTD *
ANGORA LANE PTY LTD *
Ordinary shares
Number held
Percentage of
issued shares
12,200,000
11,000,000
9,000,000
7,310,666
6,300,000
6,300,000
6,200,000
4,047,524
2,000,000
1,887,000
1,830,000
1,750,000
1,500,000
1,460,000
1,400,000
1,253,333
1,200,000
1,043,334
1,026,667
1,008,974
8.94%
8.06%
6.60%
5.36%
4.62%
4.62%
4.55%
2.97%
1.47%
1.38%
1.34%
1.28%
1.10%
1.07%
1.03%
0.92%
0.88%
0.76%
0.75%
0.74%
TOTAL
79,717,498 58.44 %
* Merged.
31 | RENASCOR RESOURCES LIMITED Annual Report 2014
Shareholder Information
Shareholder information (continued)
B. Equity security holders (continued)
Unquoted equity securities
Performance Rights
Share options
# Number of Performance Rights approved to be granted
* Number of unissued ordinary shares under the options.
Number
on
issue/granted
2,000,000 #
6,200,000 *
Number
of holders
3
6
Of the options on issue, 2,000,000 options (expiring 31 December 2014) are held by an entity related
to Stephen Bizzell, a director of the Company and as such holds more than 20% of these unquoted
equity securities.
C. Substantial holders
Substantial holders in the Company are set out below:
Name
Ordinary Shares
Number
held
Percentage
Andrew Martin + SLRI Pty Ltd + St Lucia Resources Capital Fund
Pty Ltd
David Christensen
Stephen Bizzell + related interests
CG Anderson + related interests
20,500,000
12,200,000
11,358,190
6,900,000
15.03%
8.94%
8.33%
5.06%
TOTAL
50,958,190
37.36%
D. Voting rights
The voting rights attaching to each class of equity securities are set out below:
(a)
(b)
Ordinary shares
On a show of hands every member present at a meeting in person or by proxy shall have
one vote and upon a poll each share shall have one vote.
Options and Performance Rights
No voting rights.
E. Restricted securities
No restricted securities were on issue as at 25 August 2014.
Shareholder information
Annual Report 2014 RENASCOR RESOURCES LIMITED | 32
Shareholder information (continued)
F.
Interests in Tenements
The Group held the following interests in tenements as at 25 August 2014:
Tenement
South Australia
Name
% Interest
Application
Lodged
Grant Date
Expiry Date
EL 4721
EL 5012
EL 5236
EL 5400
EL 5401
EL 4675
EL 4836
EL 4570
EL 4707
EL 4627
EL 4628
EL 4822
EL 4394
EL 4399
EL 5301
EL 5228
EL 5307
EL 4400
EL 5322
EL 5323
EL 5324
EL 5325
EL 5326
EL 4584
EL 4585
EL 4586
EL 4672
100
100
100
-
-
-
0 (Option to Acquire)
0 (Option to Acquire)
-
-
Iron Baron
Cultana
Old Wartaka
Lincoln Gap
Mt. Whyalla
Gairdner
Lake Harris
Warrior
Carnding
Tent Hill
Wilpoorina
Willouran
Cutana
Outalpa
Outalpa A, B & C
Wompinie
100
100
100
100
100
100
100
100
100
100
100
Cowell (Hiltaba JV)
0 (Earn-in JV)
Midgee
Lake Callabonna
Lake Yannerpi
Lake Callabonna South
Callabonna
Coonee Creek
Benagerie Ridge C
Benagerie Ridge D
Benagerie Ridge E
Culberta Bore
100
100
100
100
100
100
100
100
100
100
04-Apr-11
03-Apr-15
13-Sep-12
12-Sep-15
08-May-13
07-May-15
30-Apr-14
30-Apr-16
30-Apr-14
30-Apr-16
22-Feb-11
21-Feb-15
15-Feb-12
14-Feb-15
21-Sep-10
20-Sep-14
28-Mar-11
27-Mar-15
13-Dec-10
12-Dec-14
13-Dec-10
12-Dec-14
17-Jan-12
16-Jan-16
10-Dec-09
09-Dec-14
10-Dec-09
09-Dec-14
09-Jul-13
08-Jul-15
01-May-13
30-Apr-15
07-Nov-12
06-Nov-14
10-Dec-09
09-Dec-14
16-Jul-12
15-Jul-17
16-Jul-12
15-Jul-17
17-Jul-12
16-Jul-17
17-Jul-12
16-Jul-17
17-Jul-12
16-Jul-17
19-Oct-10
18-Oct-14
19-Oct-10
18-Oct-14
19-Oct-10
18-Oct-14
21-Feb-11
20-Feb-15
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Northern Territory
ELA27517
ELA27518
ELA27520
NirripiNth
NirripiWest
GhostGumBore
0 (Application)
0 (Application)
0 (Application)
29-Jul-09
29-Jul-09
29-Jul-09
-
-
-
-
-
-
33 | RENASCOR RESOURCES LIMITED Annual Report 2014
Corporate Governance Statements
Corporate Governance Statements
The board of directors (the Board) of the Company is responsible for the corporate governance of the Group.
The Board guides and monitors the business and affairs of the Company on behalf of its shareholders by whom
they are elected and to whom they are accountable.
The Company’s Corporate Governance Statement is structured with reference to the Australian Securities
Exchange (“ASX”) Corporate Governance Council’s (the “Council”) “Corporate Governance Principles and
Recommendations, 2nd Edition”, which are as follows:
Principle 1
Principle 2
Principle 3
Principle 4
Principle 5
Principle 6
Principle 7
Principle 8
Lay solid foundations for management and oversight
Structure the board to add value
Promote ethical and responsible decision making
Safeguard integrity in financial reporting
Make timely and balanced disclosure
Respect the rights of shareholders
Recognise and manage risk
Remunerate fairly and responsibly
A copy of the eight Corporate Governance Principles and Recommendations can be found on the ASX’s website.
The Board is of the view that with the exception of the departures from the ASX Guidelines as set out below, it
otherwise complies with all of the ASX Guidelines.
ASX Principles
and recommendations
Summary of the Group’s
Position
Principle 1 – Lay solid foundations for management and oversight
Recommendation 1.2 – Companies should
disclose the process for evaluating the
performance of senior executives
The Board has not established a separate nomination committee.
The directors consider that the Group is not of a size nor are its
affairs of such complexity as to justify the formation of any other
special or separate committees at this time. In the absence of a
formally constituted nomination committee, the Board acts as a
nomination committee. Members of the Board have been
brought together to provide a blend of qualifications, skills and
national and international experience required for managing a
company operating within the mining industry.
Principle 2 – Structure the board to add value
Recommendation 2.1 – A majority of the
Board should be independent directors
While
this
the Group does not presently comply with
recommendation, the Group may consider appointing further
independent directors in the future. The Group believes that
given the size and scale of its operations, non-compliance by the
Group with this recommendation will not be detrimental to the
Group.
Recommendation 2.2 – The Chairman
should be an independent director
Recommendation 2.4 – The board should
establish a nomination committee
Mr Bizzell is a non-executive director and the current Chairman of
the Board. The Group does not consider Mr Bizzell to be an
independent director as defined in the ASX Guidelines on the
basis that he, together with his associated entities, are in
aggregate a substantial (greater than 5%) shareholder in the
Group and Bizzell Capital Partners Pty Ltd, of which he is a
director, provided corporate advisory services to the Group. The
Group believes that given the size and scale of its operations,
non-compliance by the Group with this Recommendation 2.2 will
not be detrimental to the Group.
The Board’s view is that the Group is not currently of the size to
justify the formation of a separate nomination committee. The
Board currently performs the functions of a nomination committee
and where necessary will seek advice of external advisors in
relation to this role. The Board shall, upon the Group reaching
the requisite corporate and commercial maturity, approve the
constitution of a nomination committee to assist the Board in
relation to the appointment of Directors and senior management.
Corporate Governance Statements
Annual Report 2014 RENASCOR RESOURCES LIMITED | 34
ASX Principles
and recommendations
Summary of the Group’s
Position
Principle 3 – Promote Ethical and Responsible Decision Making
Recommendation 3.3 – Companies
should disclose in each annual report
the measurable objectives for achieving
gender diversity set by the board in
accordance with the diversity policy and
progress towards achieving them.
Recommendation 3.4 – Companies
should disclose in each annual report
the proportion of women employees in
the whole organisation, women in
senior executive positions and women
on the board.
Recommendation 3.5 – Companies
should provide the information indicated
in the Guide to reporting on Principle 3.
is available on
The Group adopted a formal diversity policy on 8 November
2012 which
the Company website,
www.renascor.com.au. Given the Group’s size and scale of
its operations, and the small number of its personnel the Board
has not yet established any measurable objectives for
achieving gender diversity and as such does not comply with
this recommendation.
Whilst the Group believes that the current non-compliance with
this recommendation will not be detrimental to the Group, it
also recognises that a talented, skilful and diverse workforce
will be an important factor to the Group’s future success as the
Group strives to reach the requisite corporate and commercial
maturity.
The board will review and consider setting measurable
objectives to assist in achieving gender diversity as part of its
annual compliance review.
The Group Table 1 below summarises the proportion of
women in the Group for year ended 30 June 2014.
The Group has adopted a Corporate Ethics Policy and a
Trading Policy, which are set out in the Company’s Corporate
Governance Charter as well as a stand-alone Trading Policy.
The Board of the Company is committed to administering the
policies and procedures with openness and integrity, pursuing
the true spirit of corporate governance commensurate with the
Company's needs. The Corporate Governance Charter and
Trading Policy are available on the Company website,
www.renascor.com.au.
Table 1:
For Year Ended 30 June 2014, the Group’s overall workforce is detailed below:
NumberP'CtageNumberP'CtageNumberP'CtageBoard (Non Executive)3100%00%3100%Executives and Senior management3100%00%3100%Technical and Administrative #267%133%3100%TOTAL889%111%9100%# Includes part-time employee and contract personnel.MalesFemalesTotal
35 | RENASCOR RESOURCES LIMITED Annual Report 2014
Corporate Governance Statements
ASX Principles
and recommendations
Summary of the Group’s
Position
Principle 4 – Safeguard integrity in financial reporting
Recommendation 4.2 – The audit
committee should be structured so that it:
- Consists only of non-executive
directors
- Consists of a majority of independent
directors
- Is chaired by an independent chair,
who is not chair of the board
- Has at least 3 members
Mr Martin is a non-executive director and the current Chairman
of the Audit and Risk Management Committee. Mr Martin is a
director of SLRI Pty Ltd and St Lucia Capital Fund Pty Ltd, which
act as corporate trustees for trust funds which together are
substantial (greater than 5%) shareholders in the Company.
Mr Martin is a beneficiary of a trust ultimately holding a more
than 20% interest in these trust funds and as such, does not
meet the independence requirement as defined in the ASX
guidelines.
Mr Bizzell is a non-executive director, the current Chairman of
the Board and a member of the Audit and Risk Management
Committee. The Group does not consider Mr Bizzell to be an
independent director as defined in the ASX Guidelines on the
basis that he, together with his associated entities, are in
aggregate a substantial (greater than 5%) shareholder in the
Group.
Mr McConachy is an executive director and a member of the
Audit and Risk Management Committee. Mr McConachy has
business dealings with the Group as disclosed in note 19 to the
financial statements and as such does not meet
the
independence requirement as defined in the ASX guidelines.
On the basis of above information, the Group is of the view that
that the Audit and Risk Management Committee does not
consist of a majority of independent directors. While the Group
does not presently comply with this Recommendation 4.2, the
Group may consider appointing further independent Directors in
the future. The Group believes that given the size and scale of
its operations, non-compliance by
this
the Group with
Recommendation 4.2 will not be detrimental to the Group.
Principle 8 - Remunerate fairly and responsibly
Recommendation 8.1 – The board should
establish a remuneration committee
The Board has not established a remuneration committee. The
Board considers that given its size, no efficiencies or other
benefits would be gained by the establishing of such committee.
The role of the remuneration committee is carried out by the full
Board. The Group has adopted a Remuneration Committee
Charter, which
the Company’s Corporate
in
Governance Charter available on the Company website,
www.renascor.com.au.
is set out
Corporate Governance Statements
Annual Report 2014 RENASCOR RESOURCES LIMITED | 36
Board
The Board has adopted a formal Board Charter that outlines the roles and responsibilities of directors and senior
executives.
the Company website,
www.renascor.com.au.
The Corporate Governance Charter
is publicly available on
The skills, experience and expertise relevant to the position of director held by each director in office at the date of
the Annual Report is included in the Director’s Report. Corporate Governance Council Recommendation 2.1
requires a majority of the Board should be independent Directors. The Corporate Governance Council defines an
independent director as a non-executive director who is not a member of management and who is free of any
business or other relationship that could materially interfere with – or could reasonably be perceived to materially
interfere with – the independent exercise of their judgement.
In the context of director independence “materiality” is considered from both the Company and the individual
director’s perspective. The determination of materiality requires consideration of both quantitative and qualitative
elements. An item is presumed to be quantitatively immaterial if it is equal or less than 5% of the appropriate base
amount. It is presumed to be material (unless there is qualitative evidence to the contrary) if it is equal to or
greater than 5% of the appropriate base amount. Qualitative factors considered included whether a relationship is
strategically important, the competitive landscape, the nature of the relationship and the contractual or other
arrangements governing it and other factors which point to the actual ability of the Director in question to shape the
direction of the Company’s loyalty.
Factors that may impact on a director’s independence are considered each time the Board meets.
At the date of this report:
In accordance with the Council’s definition of independence above, and the materiality thresholds set, no directors
are considered to be independent:
In accordance with the Council’s definition of independence above, and the materiality thresholds set, the following
directors are not considered to be independent:
Name
David Christensen
Position
Managing Director
Geoffrey McConachy
Executive Director
Reason for non-compliance
Mr Christensen is Managing Director and is a substantial
(greater than 5%) shareholder in the Company and as
such does not meet the independence requirement as
defined in the ASX guidelines.
Mr McConachy is an Executive Director and has business
dealings with the Group as disclosed in note 19 to the
financial statements and as such does not meet the
independence requirement as defined
the ASX
guidelines.
in
Stephen Bizzell
Andrew Martin
Chris Anderson
Non-Executive Director
Non-Executive Chairman Mr Bizzell is a Non-executive Director and a member of
the Audit and Risk Management Committee. Together
with his associated entities, he is a substantial (greater
than 5%) shareholder in the Company and as such does
not meet the independence requirement as defined in the
ASX guidelines.
Mr Martin is a non-executive director and the current
Chairman of the Audit and Risk Management Committee.
Mr Martin is a director of SLRI Pty Ltd and St Lucia Capital
Fund Pty Ltd, which act as corporate trustees for trust
funds which together are substantial (greater than 5%)
shareholders in the Company. Mr Martin is a beneficiary
of a trust ultimately holding a more than 15% interest in
these trust funds and as such, does not meet the
independence requirement as defined
the ASX
guidelines.
Mr Anderson is a Non-executive Director and has
business dealings with the Group as disclosed in note 19
to the financial statements. He is also a substantial
(greater than 5%) shareholder in the Company and as
such does not meet the independence requirement as
defined in the ASX guidelines.
Non-Executive Director
in
37 | RENASCOR RESOURCES LIMITED Annual Report 2014
Corporate Governance Statements
Board (Continued)
The Company considers industry experience and specific expertise, as well as general corporate experience, to be
important attributes of its Board members. The Directors noted above have been appointed to the Board of the
Company due to their considerable industry and corporate experience.
There are procedures in place, agreed by the board, to enable Directors, in furtherance of their duties, to seek
independent professional advice at the Company’s expense.
The term in office held by each Director in office at the date of this report is as follows:
Name
David Christensen
Stephen Bizzell
Andrew Martin
Geoffrey McConachy
Chris Anderson
Term in office
5 years 7 months
4 years
4 years
3 years 11 months
2 years 7 months
Trading Policy
The board has adopted a policy and procedure on dealing in the Company’s securities by Directors, officers and
employees which prohibits dealing in the Company’s securities when those persons possess inside information
until it has been released to the market and adequate time has passed for this to be reflected in the security’s
prices, and during certain pre-determined windows.
The Company’s policy regarding dealings by directors in the Company’s shares is that directors should never
engage in short term trading and should not enter into transactions when they are in possession of price sensitive
information not yet released by the Company to the market; or for a period of fourteen (14) days prior to the
scheduled (per ASX Listing Rules) release by the Company of (ASX), Quarterly Operations and Cash Flow
Reports or such shorter period as may be approved of by the Board of Directors after receipt of notice of intention
to buy or sell by a director to other members of the Board.
Directors will generally be permitted to engage in trading (subject to due notification being given to the Chairperson
and Secretary) for a period commencing one (1) business day after the release of (ASX) Quarterly Operations and
Cash Flow Reports to the market and for a period commencing one (1) business day following the release of price
sensitive information to the market which allows a reasonable period of time for the information to be disseminated
among members of the public, (The Trading Policy is publicly available on the Company’s website,
www.renascor.com.au).
Remuneration and Nomination Committees
Due to the size and scale of operations, the Company does not have separately established Remuneration or
Nomination Committees. The full Board carries out the functions of Remuneration and Nomination Committees,
operating under charters approved by the Board (The Remuneration Committee Charter and the Nomination
Committee Charter are included in the Corporate Governance Charter which is publicly available on the Company
website, www.renascor.com.au).
Audit and Risk Management Committee
The Board has established an Audit and Risk Management Committee, which operates under a charter approved
by the Board. It is the Board’s responsibility to ensure that an effective internal control framework exists within the
Company. This includes internal controls to deal with both the effectiveness and efficiency of significant business
processes, the safeguarding of assets, the maintenance of proper accounting records, and the reliability of
financial information as well as non-financial considerations such as the benchmarking of operational key
performance indicators. The Board has delegated the responsibility for the establishment and maintenance of a
framework of internal control and ethical standards for the management of the Company to the Audit and Risk
Management Committee.
The Committee also provides the Board with additional assurance regarding the reliability of financial information
for inclusion in the financial reports. Two members of the Audit and Risk Management Committee are
Non-Executive Directors.
The members of the Audit and Risk Management Committee at the date of this report are:
Andrew Martin (Chairman)
Stephen Bizzell
Geoffrey McConachy
Corporate Governance Statements
Annual Report 2014 RENASCOR RESOURCES LIMITED | 38
Audit and Risk Management Committee (Continued)
For additional details of directors’ attendance at Board and Audit and Risk Management Committee meetings and
to review the qualifications of the members of the Audit and Risk Management Committee, please refer to the
Directors’ Report.
The Audit and Risk Management Charter is included in the Corporate Governance Charter which is publicly
available on the Company’s website, www.renascor.com.au.
Risk Management
The Company has developed a basic framework for risk management and internal compliance and control
systems which cover organisational, financial and operational aspects of the Company’s affairs. Further details of
the Company’s Risk management, policies can be found within the Audit and Risk Management Committee
Charter available on the Company’s website www.renascor.com.au.
Recommendation 7.2 requires that the Board disclose that management has reported to it as to the effectiveness
of the Company’s management of its material business risks. Business risks are considered regularly by the
Board and management.
As required by Recommendation 7.3, the Board has received written assurances from the Managing Director and
Chief Financial Officer that to the best of their knowledge and belief, the declaration provided by them in
accordance with section 295A of the Corporations Act is founded on a sound system of risk management and
internal control and that they system is operating effectively in all material respects in relation to financial reporting
risks.
Performance Evaluation
The full Board, in carrying out the functions of the Remuneration and Nomination Committees, considers
remuneration and nomination issues annually and otherwise as required in conjunction with the regular meetings
of the Board.
The performance of the individual members of the Board is considered at the regular meetings of the Board. No
formal performance evaluation of the directors was undertaken during the year ended 30 June 2014. The Board
intends to undertake formal evaluations during the current financial year against indicators aligned with the
financial and non-financial objectives of the Company.
Remuneration
It is the Company’s objective to provide maximum stakeholder benefit through the retention of a high quality Board
and Executive team by remunerating directors and key executives fairly and appropriately with reference to
relevant and employment market conditions. To assist in achieving this objective, the Board links the nature and
amount of Executive Director’s and Officer’s emoluments to the Group’s financial and operations performance.
The expected outcomes of the remuneration structure are:
retention and motivation of key Executives
attraction of quality management to the Group
performance incentives which allow Executives to share the rewards of the success of the Group
For details on the amount of remuneration and all monetary and non-monetary components for each of the
(Non-Director) Executives during the period, and for all Directors, please refer to the Remuneration Report within
the Directors’ Report. In relation to the payment of bonuses, options and other incentive payments, discretion is
exercised by the Board, having regard to the overall performance of the Company and the performance of the
individual during the period.
There is no scheme to provide retirement benefits, other than statutory superannuation, to Non-Executive
Directors.
The Board is responsible for determining and reviewing compensation arrangements.
Continuous Disclosure Policy
Detailed compliance procedures for ASX Listing Rule disclosure requirements have been adopted by the Group.
The Company’s Obligation of Disclosure Policy can be found within the Company’s Corporate Governance Charter
on the Company’s website www.renascor.com.au.
39 | RENASCOR RESOURCES LIMITED Annual Report 2014
Corporate Governance Statements
Communications
The Group has designed a disclosure system to ensure it complies with the ASX’s continuous disclosure rules and
that information is made available to all investors equally, promoting effective communications with shareholders
and encouraging shareholder participation at general shareholder meetings. A copy of the Information Disclosure
Program Procedures can be found within the Company’s Corporate Governance Charter on its website
(www.renascor.com.au) in the Corporate Governance section. In addition to corporate and project information
generally available on the Company’s website, in the Investors section of the Company’s website the following
information is made available:
ASX Releases
Annual Reports
Quarterly Reports
Presentations
Prospectus
Corporate Governance Charter
Trading Policy
Diversity Policy
Other Information
Further information relating to the Company’s corporate governance practices and policies has been made publicly
available on the Company’s web site www.renascor.com.au.
Consolidated statement of profit or loss and
other comprehensive income
Annual Report 2014 RENASCOR RESOURCES LIMITED | 40
Financial statements
Renascor Resources Limited
Consolidated statement of profit or loss and other comprehensive income
For the year ended 30 June 2014
Revenue
Other income
Administration and consulting
Depreciation and amortisation expense
Employee benefits expense
Legal fees
Office accommodation
Impairment of exploration costs
Other expenses
Loss before income tax
Income tax expense
Loss for the year
Other comprehensive income
Other comprehensive income for the year, net of tax
Notes
5 (a)
5 (b)
6
6
6
6
7
Consolidated
30 June
2014
$
30 June
2013
$
60,388
192,195
158,627
(169,424)
(8,808)
(584,674)
(21,879)
(26,941)
(827,101)
(94,098)
(1,513,910)
161,818
(175,640)
(9,458)
(528,875)
(35,904)
(30,893)
(16,936)
(85,296)
(528,989)
-
(1,513,910)
-
(528,989)
-
-
Total comprehensive income for the year
(1,513,910))
(528,989)
Loss is attributable to:
Owners of Renascor Resources Limited
Total comprehensive income for the year is attributable to:
Owners of Renascor Resources Limited
(1,513,910)
(528,989)
(1,513,910)
(528,989)
Earnings per share for loss attributable to the ordinary owners
of the Parent Entity:
Basic earnings per share
Diluted earnings per share
28
28
Cents
Cents
(1.3)
(1.3)
(0.5)
(0.5)
The above consolidated statement of profit or loss and other comprehensive income should be read in conjunction
with the accompanying notes.
41 | RENASCOR RESOURCES LIMITED Annual Report 2014
Consolidated statement of financial position
Renascor Resources Limited
Consolidated statement of financial position
As at 30 June 2014
ASSETS
Current assets
Cash and cash equivalents
Trade and other receivables
Other
Total current assets
Non-current assets
Property, plant and equipment
Exploration and evaluation
Total non-current assets
Total assets
LIABILITIES
Current liabilities
Trade and other payables
Provisions
Total current liabilities
Non-current liabilities
Provisions
Total non-current liabilities
Total liabilities
Net assets
EQUITY
Contributed equity
Reserves
Accumulated losses
Total equity
Consolidated
30 June
2014
$
30 June
2013
$
Notes
8
9
10
11
13
14
15
1,424,978
161,210
28,419
1,614,607
2,658,106
216,780
34,884
2,909,770
13,459
6,942,371
6,955,830
22,267
6,162,500
6,184,767
8,570,437
9,094,537
198,823
108,799
307,622
309,248
66,704
375,952
25,421
25,421
8,790
8,790
333,043
384,742
8,237,394
8,709,795
17
18(a)
18(b)
10,803,970
1,018,436
(3,585,012)
8,237,394
9,798,800
982,097
(2,071,102)
8,709,795
The above consolidated statement of financial position should be read in conjunction with the accompanying notes.
Consolidated statement of changes in equity
Annual Report 2014 RENASCOR RESOURCES LIMITED | 42
Renascor Resources Limited
Consolidated statement of changes in equity
For the year ended 30 June 2014
Consolidated
Notes
Contributed
equity
$
Share-based
Payments
Reserve
$
Accumulated
losses
$
Total
equity
$
Balance at 1 July 2012
9,758,800
917,275
(1,542,113)
9,133,962
Loss for the year
Total comprehensive income
-
-
-
-
(528,989)
(528,989)
(528,989)
(528,989)
Transactions with owners in their capacity as
owners:
Contributions of equity net of transaction costs
Share options issued
17(b)
18(a)
40,000
40,000
-
-
64,822
64,822
-
-
-
40,000
64,822
104,822
Balance at 30 June 2013
9,798,800
982,097
(2,071,102)
8,709,795
Balance at 1 July 2013
Loss for the year
Total comprehensive income
9,798,800
982,097
(2,071,102)
8,709,795
-
-
-
-
(1,513,910)
(1,513,910)
(1,513,910)
(1,513,910)
Transactions with owners in their capacity as
owners:
Contributions of equity, net of transaction costs
Share options issued
17(b) 1,005,170
18(a)
-
1,005,170
-
36,339
36,339
-
-
-
1,005,170
36,339
1,041,509
Balance at 30 June 2014
10,803,970
1,018,436
(3,585,012)
8,237,394
The above consolidated statement of changes in equity should be read in conjunction with the accompanying notes.
43 | RENASCOR RESOURCES LIMITED Annual Report 2014
Consolidated statement of cash flows
Renascor Resources Limited
Consolidated statement of cash flows
For the year ended 30 June 2014
Consolidated
30 June
2014
$
30 June
2013
$
Cash flows from operating activities
Receipts from Goods & Services Tax paid
Payments to suppliers and employees (inclusive of goods and services tax)
Interest received
Other (Research & Development tax concession)
Other (DMITRE PACE funding grant)
Net cash inflow (outflow) from operating activities
127,874 186,627
(864,879) (959,001)
68,409 183,676
5b 161,818 -
5b 40,000 -
27 (466,778) (588,698)
Cash flows from investing activities
Payments for property, plant and equipment
Payments for exploration expenditure
Net cash inflow (outflow) from investing activities
Cash flows from financing activities
Proceeds of loan from shareholder
Repayment of loan from shareholder
Payment for share issue expenses
Proceeds from issues of shares
Net cash inflow (outflow) from financing activities
10 - (1,979)
(1,771,521)
(1,859,176)
(1,771,521) (1,861,155)
-
-
(74,830)
1,080,000
1,005,170 -
- -
-
-
-
Net increase / (decrease) in cash and cash equivalents
Cash and cash equivalents at the beginning of the financial period
Cash and cash equivalents at end of year
(1,233,128) (2,449,853)
2,658,106 5,107,959
1,424,978 2,658,106
8
The above consolidated statement of cash flows should be read in conjunction with the accompanying notes.
Notes to the consolidated financial statements
Annual Report 2014 RENASCOR RESOURCES LIMITED | 44
Notes to the consolidated financial statements
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
Summary of significant accounting policies
Financial risk management
Critical accounting estimates and judgments
Segment information
Revenue
Expenses
Income tax expense
Current assets - Cash and cash equivalents
Current assets - Trade and other receivables
Non-current assets - Property, plant and equipment
Non-current assets - Exploration and evaluation, development and mine properties
Non-current assets - Deferred tax assets
Current liabilities - Trade and other payables
Current liabilities - Provisions
Non-current liabilities - Provisions
Non-current liabilities - Deferred tax liabilities
Contributed equity
Reserves and retained earnings
Dividends
Key management personnel disclosures
Remuneration of auditors
Commitments and contingent liabilities
Related party transactions
Subsidiaries
Interests in joint ventures
Events occurring after the reporting period
Reconciliation of profit after income tax to net cash outflow from operating activities
Earnings per share
Share-based payments
Parent Entity financial information
Application of new and revised Accounting Standards
Page
45
51
53
54
55
55
56
57
57
58
58
59
59
60
60
60
61
62
62
62
64
65
66
66
66
67
67
68
69
73
74
45 | RENASCOR RESOURCES LIMITED Annual Report 2014
Notes to the consolidated financial statements
1 Summary of significant accounting policies
The principal accounting policies adopted in the preparation of these consolidated financial statements are set
out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
The financial statements are for the Group consisting of Renascor Resources Limited (''Company'' or ''Parent
Entity'') and its subsidiaries. Renascor Resources Limited is a for-profit entity for the purpose of preparing these
financial statements.
(a) Basis of preparation
These general purpose financial statements have been prepared in accordance with Australian Accounting
Standards, other authoritative pronouncements of the Australian Accounting Standards Board and the
Corporations Act 2001. The presentation currency used in this financial report is Australian dollars.
(i) Compliance with IFRS
The consolidated financial statements of the Group also comply with International Financial Reporting Standards
(IFRS) as issued by the International Accounting Standards Board (IASB).
(ii) Historical cost convention
These financial statements have been prepared on a historical cost basis, as modified by the revaluation of
available-for-sale investments and financial assets and liabilities (including derivative financial instruments) at fair
value through profit and loss.
(iii) Going Concern
The financial statements have been prepared on a going concern basis which contemplates the continuity of
normal business activities and the realisation of assets and discharge of liabilities in the ordinary course of
business. This includes the realisation of capitalised exploration expenditure of $6,942,371 (30 June 2013:
$6,162,500).
The Group has incurred a loss after tax for the year of $1,513,910 (2013; $528,989) and operations were funded
by a net cash outflow of $1,233,128 (2013: $2,449,853). At 30 June 2014, the Group had net current assets of
$1,306,985 (30 June 2013: $2,533,818).
The consolidated entity’s ability to continue as a going concern is contingent on raising additional capital and/or
the successful exploration and subsequent exploitation of its areas of interest through sale or development.
Should the Group not achieve the matters set out above, then there would be significant uncertainty over the
ability of the Group to continue as a going concern, and, therefore it may be required to realise its assets and
discharge its liabilities other than in the normal course of business and at amounts different to those stated in the
financial statements.
The financial statements do not include any adjustments relating to the recoverability and classification of asset
carrying amounts or the amount of liabilities that might result should the Company be unable to continue as a
going concern and meet its debts as and when they fall due.
(b) Principles of consolidation
(i) Subsidiaries
The consolidated financial statements incorporate the assets and liabilities of all subsidiaries of Renascor
Resources Limited (‘company’) as at 30 June 2014 and the results of all subsidiaries for the year then ended.
Renascor Resources Limited and its subsidiaries together are referred to in these financial statements as the
Group or the consolidated entity.
Subsidiaries are all those entities over which the consolidated entity has control. The consolidated entity controls
an entity when the consolidated entity is exposed to, or has rights to, variable returns from its involvement with the
entity and has the ability to affect those returns through its power to direct the activities of the entity. Subsidiaries
are fully consolidated from the date on which control is transferred to the consolidated entity. They are
de-consolidated from the date that control ceases.
Intercompany transactions, balances and unrealised gains on transactions between entities in the consolidated
entity are eliminated. Unrealised losses are also eliminated unless the transaction provides evidence of the
impairment of the asset transferred. Accounting policies of subsidiaries have been changed where necessary to
ensure consistency with the policies adopted by the consolidated entity (refer to note 1(h)).
Joint Arrangements
(ii)
Joint arrangements are arrangements in which one or more parties have joint control (the contractual sharing of
control of an arrangement where decisions about relevant activities require unanimous consent of the parties
sharing control).
Notes to the consolidated financial statements Annual Report 2014 RENASCOR RESOURCES LIMITED | 46
1 Summary of significant accounting policies (continued)
(b) Principles of consolidation (continued)
(iii) Joint Operations
The consolidated entity has entered into joint arrangements which are classified as joint operations because the
parties to the joint arrangements have rights to the assets and obligations for the liabilities, rather than to the net
assets, of the joint arrangements. The consolidated entity has recognised its direct right to, as well as its share of
jointly held, assets, liabilities, revenues and expenses of joint operations which have been included in the
financial statements under the appropriate headings. Details of joint operations are set out in note 25.
(c) Foreign currency translation
Functional and presentation currency
(i)
Items included in the financial statements of each of the Group's entities are measured using the currency of the
primary economic environment in which it operates (‘the functional currency'). The consolidated financial
statements are presented in Australian dollars, which is the Company's functional and presentation currency.
(ii) Transactions and balances
Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at
the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such
transactions and from the translation at year end exchange rates of monetary assets and liabilities denominated
in foreign currencies are recognised in profit or loss, except when they are deferred in equity as qualifying cash
flow hedges and qualifying net investment hedges or are attributable to part of the net investment in a foreign
operation.
Foreign exchange gains and losses that relate to borrowings are presented in profit or loss, within finance costs.
All other foreign exchange gains and losses are presented in profit or loss on a net basis within other income or
other expenses.
(d) Revenue recognition
Revenue is measured at the fair value of the consideration received or receivable. Amounts disclosed as
revenue are net of returns, trade allowances and duties and taxes paid. Interest income is recognised on a time
proportion basis using the effective interest method.
(e) Cash and cash equivalents
For the purpose of presentation in the statements of cash flows, cash and cash equivalents includes cash on
hand, deposits held at call with financial institutions, other short-term and highly liquid investments with original
maturities of three months or less that are readily convertible to known amounts of cash and which are subject to
an insignificant risk of changes in value.
(f) Trade receivables
Trade and other receivables are recognised initially at cost less any impairment losses. Trade and other
receivables are generally due for settlement within 30 days. They are presented as current assets unless
collection is not expected for more than 12 months after the reporting date.
(g)
Income tax
The income tax expense or revenue for the period is the tax payable on the current period's taxable income
based on the applicable income tax rate for each jurisdiction adjusted by changes in deferred tax assets and
liabilities attributable to temporary differences and to unused tax losses.
Deferred tax is provided in full on temporary differences arising between the tax bases of assets and liabilities
and their carrying amounts in the consolidated financial statements. However, deferred tax liabilities are not
recognised if they arise from the initial recognition of goodwill. Deferred tax is also not accounted for if it arises
from initial recognition of an asset or liability in a transaction other than a business combination that at the time of
the transaction affects neither accounting nor taxable profit or loss. Deferred tax is determined using tax rates
(and laws) that have been enacted or substantially enacted by the end of the reporting period and are expected
to apply when the related deferred tax asset is realised or the deferred income tax liability is settled.
Deferred tax assets are recognised for deductible temporary differences and unused tax losses only if it is
probable that future taxable amounts will be available to utilise those temporary differences and losses.
47 | RENASCOR RESOURCES LIMITED Annual Report 2014
Notes to the consolidated financial statements
1 Summary of significant accounting policies (continued)
(g) Income tax (continued)
Deferred tax liabilities and assets are not recognised for temporary differences between the carrying amount and
tax bases of investments in foreign operations where the Company is able to control the timing of the reversal of
the temporary differences and it is probable that the differences will not reverse in the foreseeable future.
Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets
and liabilities and when the deferred tax balances relate to the same taxation authority. Current tax assets and
tax liabilities are offset where the entity has a legally enforceable right to offset and intends either to settle on a
net basis, or to realise the asset and settle the liability simultaneously.
Current and deferred tax is recognised in profit or loss, except to the extent that it relates to items recognised in
other comprehensive income or directly in equity. In this case, the tax is also recognised in other
comprehensive income or directly in equity, respectively.
(h) Business combinations
The acquisition method of accounting is used to account for all business combinations, regardless of whether
equity instruments or other assets are acquired. The consideration transferred for the acquisition of a subsidiary
comprises the fair values of the assets transferred, the liabilities incurred and the equity interests issued by the
Group. The consideration transferred also includes the fair value of any asset or liability resulting from a
contingent consideration arrangement and the fair value of any pre-existing equity interest in the subsidiary.
Acquisition-related costs are expensed as incurred. Identifiable assets acquired and liabilities and contingent
liabilities assumed in a business combination are, with limited exceptions, measured initially at their fair values at
the acquisition date. On an acquisition-by-acquisition basis, the Group recognises any non-controlling interest
in the acquiree either at fair value or at the non-controlling interest’s proportionate share of the acquiree’s net
identifiable assets.
The excess of the consideration transferred and the amount of any non-controlling interests in the acquiree and
the acquisition-date fair value of any previous equity interest in the acquiree over the fair value of the Group's
share of the net identifiable assets acquired are recorded as goodwill. If those amounts are less than the fair
value of the net identifiable assets of the subsidiary acquired and the measurement of all amounts has been
reviewed, the difference is recognised directly in profit or loss as a bargain purchase.
Where settlement of any part of cash consideration is deferred, the amounts payable in the future are discounted
to their present value as at the date of exchange. The discount rate used is the entity's incremental borrowing
rate, being the rate at which a similar borrowing could be obtained from an independent financier under
comparable terms and conditions.
Contingent consideration is classified either as equity or a financial liability. Amounts classified as a financial
liability are subsequently remeasured to fair value with changes in fair value recognised in profit or loss.
(i)
Impairment of assets
Goodwill and intangible assets that have an indefinite useful life are not subject to amortisation and are tested
annually for impairment or more frequently if events or changes in circumstances indicate that they might be
impaired. Other assets that are subject to amortisation are reviewed for impairment whenever events or changes
in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised
for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount
is the higher of an asset’s fair value less costs to sell and value in use. For the purposes of assessing
impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows (cash
generating units).
Non-financial assets other than goodwill that have previously been impaired are reviewed for possible reversal of
impairment at each reporting date.
(j) Property, plant and equipment
All plant and equipment is stated at historical cost less depreciation. Historical cost includes expenditure that is
directly attributable to the acquisition of the items.
The cost of an item of plant and equipment also includes the initial estimate of the costs of dismantling and
removing the item and restoring the site on which it is located.
Notes to the consolidated financial statements
Annual Report 2014 RENASCOR RESOURCES LIMITED | 48
1 Summary of significant accounting policies (continued)
(j) Property, plant and Equipment (continued)
Subsequent costs are included in the asset's carrying amount or recognised as a separate asset, as appropriate,
only when it is probable that future economic benefits associated with the item will flow to the Group and the cost
of the item can be measured reliably. The carrying amount of any component accounted for as a separate asset
is derecognised when replaced. All other repairs and maintenance are charged to profit or loss during the
reporting period in which they are incurred.
Depreciation on plant and equipment (excluding land) is calculated on a straight line basis over the estimated
useful life of the asset.
The expected useful lives in the current and comparative periods are as follows:
-
Plant and equipment
3 – 10 years
The assets' residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each
reporting period.
An asset's carrying amount is written down immediately to its recoverable amount if the asset's carrying amount
is greater than its estimated recoverable amount (note 1(i)).
Gains and losses on disposals are determined by comparing proceeds with carrying amount. These are
included in the income statement.
(k) Exploration and evaluation expenditure
Exploration and evaluation expenditure is carried forward in the financial statements, in respect of areas of
interest for which the rights of tenure are current and where:
(i) such costs are expected to be recouped through successful development and exploitation of the area of
interest, or alternatively, by its sale; or
(ii) exploration and/or evaluation activities in the area of interest have not yet reached a stage which permits a
reasonable assessment of the existence or otherwise of economically recoverable reserves and while active and
significant operations in, or in relation to, the area are continuing.
Exploration expenditure incurred that does not satisfy the policy stated above is expensed in the period in which
it is incurred. Exploration expenditure that has been capitalised which no longer satisfies the policy stated
above is written off in the period in which any capitalised exploration expenditure no longer satisfies that policy.
The net carrying value of each area of interest is reviewed regularly and, to the extent to which this value exceeds
its recoverable value, that excess is provided for or written off in the year in which this is determined.
(l) Trade and other payables
These amounts represent liabilities for goods and services provided to the Group prior to the end of financial year
which are unpaid. The amounts are unsecured and are usually paid within 30 days of recognition. Trade and
other payables are presented as current liabilities unless an unconditional right exists to defer payment 12
months from the reporting date. They are recognised initially at their fair value and subsequently measured at
amortised cost using the effective interest method.
(m) Provisions
Provisions for legal claims are recognised when: the Group has a present legal or constructive obligation as a
result of past events; it is more likely than not that an outflow of resources will be required to settle the obligation;
and the amount has been reliably estimated. Provisions are not recognised for future operating losses.
Where there are a number of similar obligations, the likelihood that an outflow will be required in settlement is
determined by considering the class of obligations as a whole. A provision is recognised even if the likelihood of
an outflow with respect to any one item included in the same class of obligations may be small.
The Group has obligations to restore and rehabilitate certain areas where drilling has occurred on exploration
tenements. These obligations are currently being met as the drilling is completed and as such no provision has
been recognised.
49 | RENASCOR RESOURCES LIMITED Annual Report 2014
Notes to the consolidated financial statements
1 Summary of significant accounting policies (continued)
(n) Employee benefits
(i) Short-term employee obligations
Liabilities for wages and salaries, including non-monetary benefits expected to be settled wholly within 12
months after the end of each reporting period in which the employees render the related service are recognised
in respect of employees' services up to the end of the reporting period and are measured at the amounts
expected to be paid when the liabilities are settled.
(ii) Other long-term employee obligations
The liability for annual leave and long service leave not expected to be settled wholly within 12 months of the
reporting date, are recognised as part of the provision for employee benefits 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
using the projected unit credit method. Consideration is given to expected future salaries and wages levels,
experience of employee departures and periods of service. Expected future payments are discounted using
national government bond rates at the end of the reporting period with terms to maturity and currency that match,
as closely as possible, the estimated future cash outflows.
Regardless of when settlement is expected to occur, liabilities for long service leave and annual leave are
presented as current liabilities in the statement of financial position if the entity does not have an unconditional
right to defer settlement for at least 12 months after the end of the reporting period.
(iii) Retirement benefit obligations
Defined contribution plans
A defined contribution plan is a post-employment benefit plan under which an entity pays fixed contributions into
a separate entity and will have no legal or constructive obligation to pay further amounts. Obligations for
contributions to defined contribution pension plans are recognised as an employee benefit expense in profit or
loss when they are due.
(iv) Share-based payments
Share-based compensation benefits are provided to directors, executives and consultants through the granting
of unlisted share options and performance rights. Detailed information is set out in note 29.
Options and performance rights are granted for no cash consideration. When these share options and
performance rights are granted, the fair value of the options and performance rights issued are recognised as an
employee benefits expense with a corresponding increase in equity. The amount recognised as an expense is
adjusted to reflect the number of share options and performance rights for which the related service and
non-market performance conditions are expected to be met, such that the amount ultimately recognised as an
expense is based on the number of share options and performance rights that meet the related service and
non-market performance conditions at the vesting date.
The fair value of share options and performance rights are measured using an appropriate pricing model.
Measurement inputs include the share price on measurement date, exercise price of the instrument, expected
price volatility of the underlying share, the expected dividend yield and the risk-free interest rate for the term of
the option and performance rights. Service and non-market performance conditions attached to the transactions
are not taken into account in determining fair value.
Upon the exercise of options and performance rights, the balance of the share-based payments reserve relating
to those options and performance rights is transferred to share capital.
(o) Contributed equity
Ordinary shares are classified as equity.
Incremental costs directly attributable to the issue of new shares are shown in equity as a deduction, net of tax,
from the proceeds.
Notes to the consolidated financial statements
Annual Report 2014 RENASCOR RESOURCES LIMITED | 50
1 Summary of significant accounting policies (continued)
(p) Earnings per share
(i) Basic earnings per share
Basic earnings per share is calculated by dividing:
the profit attributable to owners of the Company, excluding any costs of servicing equity other than ordinary
shares
by the weighted average number of ordinary shares outstanding during the financial year (refer to note 28).
(ii) Diluted earnings per share
Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take into
account:
the after income tax effect of interest and other financing costs associated with dilutive potential ordinary
shares, and
the weighted average number of additional ordinary shares that would have been outstanding assuming the
conversion of all dilutive potential ordinary shares.
(q) Segment reporting
Operating segments are reported in a manner consistent with the internal reporting provided to the Managing
Director, who is the Group's chief operating decision maker. The Managing Director is responsible for allocating
resources and assessing performance of the operating segments. Refer to note 4 for segment reporting
information.
(r) Goods and Services Tax (GST)
Revenues, expenses and assets are recognised net of the amount of associated GST, unless the GST incurred
is not recoverable from the taxation authority. In this case it is recognised as part of the cost of acquisition of the
asset or as part of the expense.
Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net amount of
GST recoverable from, or payable to, the taxation authority is included with other receivables or payables in the
consolidated statement of financial position.
Cash flows are presented on a gross basis. The GST components of cash flows arising from investing or
financing activities which are recoverable from, or payable to the taxation authority, are presented as operating
cash flows.
(s) Parent Entity financial information
The financial information for the Parent Entity, Renascor Resources Limited, disclosed in note 30 has been
prepared on the same basis as the consolidated financial statements, except as set out below.
Investments in subsidiaries
(i)
Investments in subsidiaries are accounted for at cost in the financial statements of the Parent Entity.
51 | RENASCOR RESOURCES LIMITED Annual Report 2014
Notes to the consolidated financial statements
2 Financial risk management
The Group considers its capital to comprise its ordinary share capital and accumulated losses. The Group
does not have a formally established treasury function. The board is responsible for managing the
Group’s finance facilities. The Group does not currently undertake hedging of any kind and is not directly
exposed to currency risk.
The Group holds the following financial instruments:
Financial assets
Cash and cash equivalents
Trade and other receivables
Financial liabilities at amortised cost
Trade and other payable
Consolidated
30 June
2014
$
30 June
2013
$
1,424,978
161,210
1,586,188
2,658,106
216,780
2,874,886
198,823
198,823
309,248
309,248
(a)
Market risk
(i) Cash flow and fair value interest rate risk
As at 30 June 2014 and 30 June 2013, the Group had no borrowings.
The table below summarises the Group's exposure to interest rate risk at the end of the reporting period:
Consolidated
30 June 2014
30 June 2013
Weighted
average
interest rate
%
Balance
$
Weighted
average
interest rate
%
Balance
$
Cash and cash equivalents
Trade and other receivables
Trade and other payables
Net exposure to cash flow interest rate risk
3.46 %
- %
- %
1,424,978
161,210
(198,823)
1,387,365
3.78 %
- %
- %
2,658,106
216,780
(309,248)
2,565,638
An analysis by maturities is provided in (c) below.
The Group analyses its interest rate exposure on a dynamic basis.
(ii) Summarised sensitivity analysis
The table below summarises the sensitivity of the Group’s financial assets and financial liabilities to interest
rate risk.
Consolidated
30 June 2014
Financial assets
Interest rate risk
- 1.0%
+ 1.0%
Carrying
amount
$
Profit
$
Other equity
$
Profit
$
Other equity
$
Cash and cash equivalents
1,424,978
(14,250)
Trade and other receivables
161,210
Financial liabilities
Trade and other payables
(198,823)
-
-
Total increase/ (decrease)
1,387,365
(14,250)
-
-
-
-
14,250
-
-
14,250
-
-
-
-
Notes to the consolidated financial statements Annual Report 2014 RENASCOR RESOURCES LIMITED | 52
2 Financial risk management (continued)
(a)
Market risk (continued)
Consolidated
30 June 2013
Financial assets
Interest rate risk
-1.0%
+1.0%
Carrying
amount
$
Profit
$
Other equity
$
Profit
$
Other equity
$
Cash and cash equivalents
2,658,106
(26,581)
Trade and other receivables
216,780
Financial liabilities
Trade and other payables
(309,248)
-
-
Total increase/ (decrease)
2,565,638
(26,581)
-
-
-
-
26,581
-
-
26,581
-
-
-
-
(b) Credit risk
Credit risk is managed on a Group basis. Credit risk arises from cash and cash equivalents and deposits with
banks and financial institutions, as well as credit exposures to customers, including outstanding receivables
and committed transactions. For banks and financial institutions, only independently rated parties with a
minimum rating of 'A' are accepted. If wholesale customers are independently rated, these ratings are used.
Otherwise, if there is no independent rating, risk control assesses the credit quality of the customer, taking into
account its financial position, past experience and other factors. Individual risk limits are set based on internal
or external ratings in accordance with limits set by the board.
The credit quality of financial assets that are neither past due nor impaired can be assessed by reference to
external credit ratings (if available) or to historical information about counterparty default rates:
Trade and other receivables
Counterparties without external credit rating
Total trade and other receivables
Cash and cash equivalents
Minimum rating of A
Total cash and cash equivalents
Consolidated
2014
$
2013
$
161,210
161,210
216,780
216,780
1,424,978
2,658,106
1,424,978
2,658,106
53 | RENASCOR RESOURCES LIMITED Annual Report 2014
Notes to the consolidated financial statements
2 Financial risk management (continued)
(c) Liquidity risk
Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the
availability of funding through an adequate amount of committed credit facilities to meet obligations when due
and close out market positions. At the end of each reporting period the Group held a combination of term
deposits and deposits at call of $1,424,978 (2013: $2,658,106) that are expected to readily generate cash
inflows for managing liquidity risk. The Group has sufficient funds to finance its operations and exploration
activities and to allow for reasonable contingencies.
Maturities of financial liabilities
The tables below analyse the Group's financial liabilities into relevant maturity groupings based on their
contractual maturities.
The amounts disclosed in the table are the contractual undiscounted cash flows. Balances due within 12
months equal their carrying balances as the impact of discounting is not significant.
Less than
6 months
6 - 12
months
Less
than 1
year
Between
1 and 5
years
Over 5
years
Group - At 30 June 2014
$
$
$
$
$
Total
contract
ual cash
flows
$
Carrying
Amount
(assets)/
liabilities
$
Trade payables
Total
(198,823)
(198,823)
-
-
-
-
-
-
- (198,823) (198,823)
- (198,823) (198,823)
Group - At 30 June 2013
Less than
6 months
6 - 12
months
Less than
1 year
Between
1 and 5
years
Over 5
years
$
$
$
$
$
Total
contractu
al cash
flows
$
Carrying
Amount
(assets)/
liabilities
$
Trade payables
Total
(309,248)
(309,248)
-
-
-
-
-
-
- (309,248) (309,248)
- (309,248) (309,248)
3 Critical accounting estimates and judgments
Estimates and judgments are continually evaluated and are based on historical experience and other factors,
including expectations of future events that may have a financial impact on the entity and that are believed to
be reasonable under the circumstances.
Estimates and judgments are continually evaluated and are based on management's historical experience and
knowledge of relevant facts and circumstances at that time.
The Group makes estimates and judgments concerning the future. The resulting accounting estimates and
judgments may differ from the related actual results and may have a significant effect on the carrying amounts
of assets and liabilities within the next financial year and on the amounts recognised in the financial
statements. Information on such estimates and judgments is contained in the accounting policies and/or notes
to the financial statements.
Notes to the consolidated financial statements Annual Report 2014 RENASCOR RESOURCES LIMITED | 54
3 Critical accounting estimates and judgments (continued)
(i) Exploration and evaluation expenditure
Expenditure incurred on exploration and evaluation activities have been carried forward in accordance with
Note 1 (k) on the basis that exploration and evaluation activities have not yet reached a stage which permits a
reasonable assessment of the existence or otherwise of economically recoverable reserves and active and
significant operations in relation to the area are continuing. Exploration expenditure incurred that does not
satisfy the policy stated above is expensed in the period in which it is incurred. Exploration expenditure that
has been capitalised which no longer satisfies the policy stated above is written off in the period in which the
decision is made. Details of capitalised exploration and evaluation costs are presented in Note 11.
(ii) Impairment of property, plant and equipment, deferred exploration and development expenditure and mine
properties
The Group reviews for impairment of property, plant and equipment, exploration and development expenditure
and mine properties in accordance with the accounting policy stated in note 1(i) to 1(k). With the exception of
deferred exploration (refer Note 11), the recoverable amount of these assets has been determined based on
higher of the assets' fair value less costs to sell and value in use. These calculations require the use of
estimates and judgments.
(iii) Income taxes
Judgement is required in determining not to recognise deferred tax assets for tax losses. Total unused tax
losses are shown at note 7(c).
(iv) Share-based payments
Management has determined that the Black Scholes and Monte Carlo simulation models are appropriate
techniques to determine the fair value of share-based payments. These models require the use of input
assumptions, including expected volatility, expected life, expected dividend rate and expected risk-free rate of
return. The list of inputs used to calculate the fair values of share-based payments are provided in Note 29.
4 Segment information
The Group has identified its operating segments based on the internal reports that are reviewed and used by
the Managing Director (chief operating decision maker) and the board of directors in assessing performance
determining the allocation of resources. The Group is managed primarily on a geographic basis, that is, the
location of the respective areas of interest (tenements) in Australia. Operating segments are determined on
the basis of financial information reported to the board which is at the consolidated level. The Group does not
have any products or services it derives revenue from.
Accordingly, management currently identifies the Group as having only one reportable segment, being the
exploration for copper, gold, uranium and other minerals in Australia. There have been no changes in the
operating segments during the year. Accordingly, all significant operating decisions are based upon analysis of
the Group as one segment. The financial results from this segment are equivalent to the financial statements
of the Group as a whole.
55 | RENASCOR RESOURCES LIMITED Annual Report 2014
Notes to the consolidated financial statements
5 Revenue and Other Income
(a) Revenue
Interest income
(b) Other Income
Research and development tax concession
DMITRE PACE funding grant
Note: As at 30 June 2014 the research and development tax concession
cash payment had not yet been received.
6 Expenses
Profit/(Loss) before income tax includes the following specific
expenses:
Depreciation
Office furniture and equipment
Computer equipment
Total depreciation
Exploration costs
Exploration expenditure incurred
Exploration expenditure written off
Finance costs - net
Interest and finance charges paid/payable for financial liabilities not at
fair value through profit or loss
Fair value gains on interest swaps cash flow hedges - transfer from
equity
Finance costs expensed
Employee benefits expense
Employee share based payments expense
Defined contribution superannuation expense
Other share based payments expense
Minimum lease payments
Consolidated
30 June
2014
$
30 June
2013
$
60,388
192,195
118,627
161,818
40,000 -
158,627
161,818
Consolidated
30 June
2014
$
30 June
2013
$
768
8,040
8,808
708
8,750
9,458
-
827,101
827,101
-
16,936
16,936
-
-
-
-
-
-
485,373 447,756
24,069
57,050
528,875
36,339
62,962
584,674
-
4,523
26,941
30,893
Notes to the consolidated financial statements
Annual Report 2014 RENASCOR RESOURCES LIMITED | 56
7 Income tax expense
(a)
Income tax expense:
Current tax
Deferred tax
Deferred income tax (revenue) expense included in income tax expense
comprises:
Decrease (increase) in deferred tax assets (note 12)
(Decrease) increase in deferred tax liabilities (note 16)
Consolidated
30 June
2014
$
30 June
2013
$
-
-
-
-
-
-
(1,778,987)
1,778,987
-
(1,547,432)
1,547,432
-
(b) Numerical reconciliation of income tax expense to prima facie
tax payable
Profit/(Loss) from continuing operations before income tax expense
(1,513,910)
(528,989)
Tax at the Australian tax rate of 30% (2013: 30%)
Tax effect of amounts which are not deductible (taxable) in calculating
Taxable income:
Non-taxable income:
- Debt forgiveness
(454,173)
(158,697)
-
-
- Research and development tax concession
(35,588)
(48,545)
Non-deductible expenses:
Entertainment
Share-based payments
-
-
- Other
Deferred tax asset not recognised
Under / over provision for income tax
Income tax expense
(c) Tax losses
285
10,902
-
478,575
-
454,173
660
8,578
1,057
196,947
-
158,697
-
-
Unused tax losses for which no deferred tax asset has been recognised
Potential tax benefit @ 30%
3,167,519
950,256
1,754,896
526,469
(d) Unrecognised temporary differences
Temporary differences for which deferred tax assets have not been
recognised:
Temporary differences
Potential tax benefit @ 30%
-
-
-
-
57 | RENASCOR RESOURCES LIMITED Annual Report 2014
Notes to the consolidated financial statements
8 Current assets - Cash and cash equivalents
Cash at bank and in hand
(a) Cash at bank and on hand
Consolidated
30 June
2014
$
30 June
2013
$
1,424,978
2,658,106
Cash at bank accounts are interest bearing attracting normal market interest rates.
As funds are held with AA/AA1 to A/A1 credit rated financial institutions (as per S&P/Moody's ratings) there is
minimal counterparty credit risk of funds held.
(b) Fair value
The carrying amount for cash and cash equivalents equals the fair value.
9 Current assets - Trade and other receivables
GST refundable
Research & Development Tax Concession receivable
Sundry receivables
Consolidated
30 June
2014
$
30 June
2013
$
41,229
118,627
1,354
161,210
45,729
161,818
9,233
216,780
(a) Fair value risk
Due to the short-term nature of current receivables, their carrying amount is assessed to approximate their fair
value.
(b) Credit risk
The maximum exposure to credit risk at the end of each reporting period is the carrying amount of each class
of receivables mentioned above. Refer to note 2 for more information on the risk management policy of the
Group and the credit quality of the entity's trade receivables.
Notes to the consolidated financial statements
Annual Report 2014 RENASCOR RESOURCES LIMITED | 58
10 Non-current assets - Property, plant and equipment
Consolidated
Gross carrying amount
Balance at 30 June 2012
Additions
Depreciation charge
Balance at 30 June 2013
Additions
Depreciation charge
Balance at 30 June 2014
Computer Equipment
Cost
Accumulated depreciation
Net book amount
Plant and Equipment
Cost
Accumulated depreciation
Net book amount
Computer
equipment
$
Office furniture
and equipment
$
Total
$
26,514
1,125
(8,750)
18,889
-
(8,040)
10,849
3,232
854
(708)
3,378
-
(768)
2,610
29,746
1,979
(9,458)
22,267
-
(8,808)
13,459
Consolidated
30 June
2014
$
31,549
(20,700)
10,849
4,444
(1,834)
2,610
30 June
2013
$
31,549
(12,660)
18,889
4,444
(1,066)
3,378
11 Non-current assets - Exploration and evaluation expenditure
Exploration and evaluation
Opening balance
Acquisitions through business combinations
Impairment
Expenditure incurred
Closing balance
Consolidated
30 June
2014
$
6,162,500
-
(827,101)
1,606,972
6,942,371
30 June
2013
$
4,291,316
-
(16,935)
1,888,119
6,162,500
Exploration and evaluation expenditure comprises of net direct costs and includes an appropriate portion of
related salaries & wages expenditure associated with each area of interest. During the financial year the Group
has allocated $593,758 of internal personnel costs (2013: $603,001) and management fees for joint venture
tenements of $3,256 (2013: $30,076) which form part of the exploration expenditure for the year.
The recoverability of exploration and evaluation assets depends on successful developments and commercial
exploitation of tenement areas.
59 | RENASCOR RESOURCES LIMITED Annual Report 2014
Notes to the consolidated financial statements
12 Non-current assets - Deferred tax assets
Consolidated
The balance comprises temporary differences
attributable to:
Deductible temporary differences
-
-
-
Accruals and other payables
Employee benefits
Expenses deductible over 5 years
Tax losses
Total deferred tax assets
30 June
2014
$
30 June
2013
$
9,273
40,266
103,434
8,715
22,648
141,754
1,626,014
1,778,987
1,374,314
1,547,432
Set-off of deferred tax liabilities pursuant to set-off provisions
(note 16)
Net deferred tax assets
(1,778,987) (1,547,432)
- -
Movements:
Opening balance at 1 July
Credited to profit or loss
Closing balance at 30 June
1,547,432
231,555
1,778,987
1,006,390
541,042
1,547,432
13 Current liabilities - Trade and other payables
Trade payables
Sundry creditor and accrued expenses
Other payables
Consolidated
30 June
2014
$
88,709
110,114
-
198,823
30 June
2013
$
219,850
92,941
(3,543)
309,248
Notes to the consolidated financial statements
Annual Report 2014 RENASCOR RESOURCES LIMITED | 60
14 Current liabilities – Provisions
Consolidated
30 June
2014
$
30 June
2013
$
Employee benefits
108,799
66,704
Provision for employee benefits is made for annual leave owed as at 30 June 2014
15 Non-current liabilities – Provisions
Consolidated
30 June
2014
$
30 June
2013
$
Employee benefits
25,421
8,790
Provision for employee benefits is made for long service leave owed as at 30 June 2014
16 Non-current liabilities - Deferred tax liabilities
Consolidated
30 June
2014
$
30 June
2013
$
The balance comprises temporary differences attributable to:
Assessable temporary differences
-
-
Interest receivable
Exploration and evaluation expenditure
Total deferred tax liabilities
149
1,778,838
1,778,987
2,556
1,544,877
1,547,432
Set-off of deferred tax liabilities pursuant to set-off provisions (note 12)
Net deferred tax liabilities
(1,778,987)
- -
(1,547,432)
Movements:
Opening balance at 1 July
Charged to profit or loss
Closing balance at 30 June
1,547,432
213,555
1,778,987
1,006,390
541,042
1,547,432
61 | RENASCOR RESOURCES LIMITED Annual Report 2014
Notes to the consolidated financial statements
17 Contributed equity
30 June
2014
Shares
30 June
2013
Shares
30 June
2014
$
30 June
2013
$
(a) Share capital
Ordinary shares
Fully paid
(b),(c)
134,600,000
114,800,000
10,803,970 9,798,800
(b) Movements in ordinary share capital:
Date
Details
Notes
Number of
shares
Issue price
$
1 July 2012
Opening balance
114,000,000
9,758,800
31 August 2012
Ordinary shares issued to Hiltaba
Gold Pty Ltd - election securities for
right to earn-in pursuant to the Cowell
joint venture agreement
800,000
$0.05
40,000
30 June 2013
Balance
114,800,000
9,798,800
5 May 2014
2 June 2014
30 June 2014
30 June 2014
30 June 2014
Placement - Ordinary shares issued
Share Purchase Plan (SPP) –
Ordinary shares issued.
Placement - Ordinary shares issued
to directors
Placement - Ordinary shares issued
Less: Transaction costs arising on
share issue, net of tax
6,640,000
$0.05
332,000
9,910,000
$0.05
495,500
3,200,000
1,850,000
21,600,000
$0.05
$0.05
160,000
92,500
1,080,000
(74,830)
30 June 2014
Balance
136,400,000
10,803,970
(c) Ordinary shares
Ordinary shares entitle the holder to participate in dividends and the proceeds on winding up of the Company in
proportion to the number of and amounts paid on the shares held.
On a show of hands every holder of ordinary shares present at a meeting in person or by proxy, is entitled to
one vote, and upon a poll each share is entitled to one vote.
(d) Options and performance rights
Information relating to options and performance rights issued, exercised and lapsed during the financial year
and options and performance rights outstanding at the end of the reporting period, is set out in note 29.
(e) Capital risk management
The Group manages its capital to ensure that entities in the Group will be able to continue as a going concern
while maximising the return to stakeholders through the optimisation of its capital structure comprising equity
and cash.
The Group reviews the capital structure on a semi-annual basis. As part of this review the Group considers the
cost of capital and the risks associated with each class of capital. Due to the nature of the Group’s activities,
being that of exploration, the Directors believe that the most advantageous way to fund activities is through
equity. The Group’s exploration activities are monitored against budget and cash flow forecasts are prepared
and maintained to ensure that adequate funds are available.
Notes to the consolidated financial statements
Annual Report 2014 RENASCOR RESOURCES LIMITED | 62
18 Reserves and accumulated losses
(a) Reserves
Share-based payments
Movements:
Share-based payments
Balance 1 July
Performance rights granted
Balance 30 June
Options and performance rights granted arise from:
Performance rights approved for issue to directors and executives
(refer note 29(a))
Options issued to consultants (refer note 29(a))
Options issued to Hiltaba Gold Pty Limited (refer note 29(b))
(b) Accumulated losses
Movements in accumulated losses were as follows:
Balance 1 July
Net loss for the year
Balance 30 June
Consolidated
30 June
2014
$
30 June
2013
$
1,018,436
982,097
982,097
36,339
1,018,436
917,275
64,822
982,097
36,339
-
-
36,339
24,069
4,523
36,230
64,822
Consolidated
30 June
2014
$
30 June
2013
$
2,071,102
1,513,910
3,585,012
1,542,113
528,989
2,071,102
(c) Nature and purpose of reserves
(i) Share-based payments
The share-based payments reserve is used to recognise the fair value of equity instruments issued to directors,
executives, consultants and others.
19 Dividends
The directors did not declare a dividend for the June 2014 period.
Parent Entity
30 June
2014
$
30 June
2013
$
Franking credits available for subsequent financial years based on a
tax rate of 30% (2013: 30%)
-
-
63 | RENASCOR RESOURCES LIMITED Annual Report 2014
Notes to the consolidated financial statements
20 Key management personnel disclosures
(a) Key management personnel compensation
Consolidated
30 June
2014
$
30 June
2013
$
972,793
16,632
56,712
36,339
1,082,476
964,334
8,790
52,713
24,069
1,049,906
Short-term employee benefits
Long-term benefits
Post-employment benefits
Share-based payments
(b)
Details of remuneration
Details of the remuneration of each director of the Company and each of the other key management personnel
of the Group, including their personally related entities, are set out in the remuneration report on pages 18 to 26.
(c)
Other transactions with key management personnel
Mr G W McConachy and Mr C Anderson are directors of Euro Exploration Services Pty Ltd (Euro). Euro has
provided the company with exploration services, geochemical sampling services as well as the provision of
geological personnel services during the year. The services provided are based on normal commercial terms
and conditions. During the financial year the Company incurred expenses of $87,402 (2013: $157,905) from
Euro which has been capitalised as Exploration Expenditure during the financial year. An amount of $9,944
(2013: $13,172) was owing to Euro at 30 June 2014.
Mr C Anderson is a director of Pondray Pty Ltd trading as CG Anderson & Associates (CGAA). CGAA has
provided geophysical services to the company. During the financial year the Company incurred expenses of
$103,234 (2013: $102,400) from CGAA of which $102,400 (2013: $99,070) has been capitalised as Exploration
Expenditure during the financial year. An amount of $24,513 (2013: $10,285) was owing to CGAA at 30 June
2014.
Mr S. Bizzell is a director of Bizzell Capital Partners Pty Ltd (BCP). BCP has provided corporate advisory
services to the company in relation to a capital raising. During the financial year the Company incurred
expenses of $51,470 (2013: $Nil) from BCP which was included as a cost of the capital raising during the
financial year. An amount of $11,000 (2013: $Nil) was owing to BCP at 30 June 2014.
.
Notes to the consolidated financial statements
Annual Report 2014 RENASCOR RESOURCES LIMITED | 64
21 Remuneration of auditors
During the year the following fees were paid or payable for services provided by the auditor of the
Parent Entity, and its related practices:
Consolidated
30 June
2014
$
30 June
2013
$
BDO Audit (SA) Pty Ltd
(i) Audit and other assurance services
Amounts paid/payable for audit and review of financial statements for the
entity or any entity in the Group:
Total remuneration for audit and other assurance services
32,800
32,800
2,035
36,000
2,0
36,000
37,000
50,750
(ii) Taxation services
Amounts paid/payable to a related practice of the auditor for tax compliance
and advisory services for the entity or any entity in the Group:
Total remuneration for taxation services
16,493
0
0
9,000
7,570
7,570
Total auditors' remuneration
49,293
45,000
The auditor of Renascor Resources Limited is BDO Audit (SA) Pty Ltd.
It is the Group’s policy to employ the auditors on assignments additional to their statutory audit duties where their
expertise and experience with the Group are important. These assignments are principally for taxation advice and
the services are provided by a related practice of the auditor.
65 | RENASCOR RESOURCES LIMITED Annual Report 2014
Notes to the consolidated financial statements
22 Commitments and contingent liabilities
In order to maintain current rights to tenure to exploration tenements, the Group is required to perform minimum
exploration work to meet the minimum expenditure requirements specified by various State governments. These
amounts are subject to renegotiation when application for a mining lease is made and at other times. These
amounts, which are not provided for in the financial report and are expected to be capitalised as incurred but not
recognised as liabilities, are as follows:
Exploration and mining lease commitments
Consolidated
30 June
2014
$
30 June
2013
$
Commitments in relation to exploration and mining leases held at the end of
each reporting period but not recognised as liabilities, payable:
Within one year
Later than one year but not later than five years
Later than five years
4,081,713
574,179
-
4,655,892
1,206,000
2,641,000
-
3,847,000
To keep tenements in good standing, work programs should meet certain minimum expenditure requirements. If the
minimum expenditure requirements are not met, the Company has the option to negotiate new terms or relinquish
the tenements. The Company also has the ability to meet expenditure requirements by joint venture or farm-in
agreements.
Exploration and mining lease contingent liabilities
The Group has previously entered into Asset Sale Agreements with Hillment Pty Ltd to acquire tenement EL 4570
and a similar agreement with Hiltaba Gold Pty Ltd for EL4707. Under each agreement, the company has granted a
1% royalty of the Net Smelter Return. The timing and amount of any financial effect relating to these agreements are
dependent on the successful exploration and subsequent exploitation of the associated tenements.
Operating Lease Commitments
Non-cancellable operating lease commitments:
Within one year
Later than one year but not later than five years
Later than five years
Consolidated
30 June
2014
$
30 June
2013
$
-
-
-
-
12,017
-
-
12,017
The office lease expired on 30 November 2013. The company is currently negotiating a short term lease and office
rent is payable monthly in advance on a month to month basis.
Notes to the consolidated financial statements
Annual Report 2014 RENASCOR RESOURCES LIMITED | 66
23 Related party transactions
(a) Parent Entities
The Parent Entity within the Group is Renascor Resources Limited.
(b) Subsidiaries
Interests in subsidiaries are set out in note 24.
(c) Key management personnel
Disclosures relating to key management personnel are set out in note 20.
24 Subsidiaries
Significant investments in subsidiaries
The consolidated financial statements incorporate the assets, liabilities and results of the following subsidiaries
in accordance with the accounting policy described in note 1(b).
Name of entity
incorporation Class of shares
Equity holding
Country of
2014
%
2013
%
Kurilpa Uranium Pty Ltd
Australia
Ordinary
Astra Resources Pty Ltd
Australia
Ordinary
100
100
100
100
25 Joint Operations
(a) Kokotha Joint Venture
On 21 February 2014 the Company entered into an agreement with SAEX Pty Ltd to terminate any remaining
obligations under the joint venture agreement (the Kokotha Joint Venture Agreement) dated 27 February 2012.
Pursuant to the agreement to terminate the joint venture agreement, tenement EL 4836 was subsequently
transferred to the company.
(b) Cowell Joint Venture
On 26 October 2010 the Company entered into a joint venture agreement (the Cowell Joint Venture Agreement)
with Hiltaba Gold Pty Ltd, a subsidiary of Stellar Resources Limited (ASX: SRZ). During the year ended 30
June 2012, having met the minimum spend of $500,000, pursuant to the Cowell Joint Venture Agreement, the
Company elected to continue the joint venture, and it may now earn a 75% interest if it spends $3,000,000
toward exploration expenditure on EL 5307 (previously EL 3978) over 4 years. As at 30 June 2014 exploration
expenditure of $1,236,793 (2013: $1,209,966), solely funded by the Company has been recorded.
67 | RENASCOR RESOURCES LIMITED Annual Report 2014
Notes to the consolidated financial statements
26 Events occurring after the reporting period
On 29 August 2014, 500,000 ordinary fully paid shares were issued to nominees of Currie Resources Pty
Ltd (Currie) as consideration for exploration and access rights pursuant to an agreement between the
Company and Currie Resources Pty Ltd that also grants the Company an option to acquire 100% of two
exploration licences, EL 5400 and EL5401 tenements in the Gawler Craton, South Australia.
No other matter or circumstance has arisen since 30 June 2014 that has significantly affected, or may
significantly affect:
the Group's operations in future financial years, or
the results of those operations in future financial years, or
the Group's state of affairs in future financial years.
27 Reconciliation of profit after income tax to net cash outflow from operating
activities
Profit / (loss) for the year
Depreciation and amortisation
Recoveries – JV Management Fees
Write Off Exploration/Inventories
Non-cash director, executive and consultant benefits
expense - share-based payments
Change in operating assets and liabilities, net of effects from purchase of
controlled entity:
Consolidated
30 June
2014
$
(1,513,910)
8,808
-
827,101
30 June
2013
$
(528,989)
9,458
(30,076)
16,936
36,339
28,592
(Increase) / decrease in trade and other receivables
(Increase) / decrease in other assets
Increase / (decrease) in trade and other payables
Increase / (decrease) in provisions
Net cash inflow / (outflow) from operating activities
(55,570) (129,577)
6,464
3,474
54,123
10,734
58,727
30,750
(466,778)
(588,698)
Non-cash financing and investing activities
Shares issued to Callabonna Uranium for no cash consideration in respect
of Exploration and Evaluation activities
Share options issued to Hiltaba Gold Pty Ltd for no cash consideration in
respect of Exploration and Evaluation activities
-
(40,000)
-
(36,230)
Shares options issued to consultants for no cash consideration
-
(4,523)
Performance rights issued to executive directors for no cash consideration
(36,339)
(24,069)
Notes to the consolidated financial statements
Annual Report 2014 RENASCOR RESOURCES LIMITED | 68
28 Earnings per share
(a) Basic earnings per share
From continuing operations attributable to the ordinary owners of the
Company
Total basic earnings per share attributable to the ordinary owners of
the Company
(b) Diluted earnings per share
From continuing operations attributable to the ordinary owners of the
Company
Total diluted earnings per share attributable to the ordinary owners of
the Company
Consolidated
30 June
2014
Cents
30 June
2013
Cents
(1.3)
(1.3)
(1.3)
(1.3)
(0.5)
(0.5)
(0.5)
(0.5)
(c) Reconciliations of earnings used in calculating earnings per share
Basic earnings per share
Profit / (loss) attributable to the ordinary owners of the Company used
in calculating basic earnings per share
From continuing operations
(d) Weighted average number of shares used as the denominator
Consolidated
30 June
2014
$
30 June
2013
$
(1,513,910)
(1,513,910)
(528,989)
(528,989)
Consolidated
30 June
2014
Number
30 June
2013
Number
Weighted average number of ordinary shares used as the
denominator in calculating basic earnings per share
Adjustments for calculation of diluted earnings per share:
Options and performance rights*
Weighted average number of ordinary shares and potential ordinary
shares used as the denominator in calculating diluted earnings per
share
116,638,137
114,666,301
-
-
116,638,137
114,666,301
* Options and performance rights are considered anti-dilutive as the Group is loss making
(i) Options and performance rights
The options and performance rights have not been included in the determination of basic earnings per
share. Options and performance rights could potentially dilute earnings per share in the future. Details
relating to the options and performance rights are set out in note 29.
69 | RENASCOR RESOURCES LIMITED Annual Report 2014
Notes to the consolidated financial statements
29 Share-based payments
(a) Share based payments to directors, executives and consultants
Set out below are summaries of options granted to directors, senior management and
consultants:
Grant Date
Expiry date
Consolidated – 2014
30 Aug 2010
30 Aug 2010
27 Oct 2010
Total
15 Dec 2013
31 Dec 2014
31 Dec 2014
Weighted average exercise price
Exercise
price
Balance at
start of the
year
Number
Granted
during the
year
Number
Exercised
during the
year
Number
Expired/
Forfeited
during the
year
Number
Balance at
end of the
year
Number
Vested and
exercisable
at end of the
year
Number
$0.24
$0.24
$0.24
8,100,000
1,000,000
700,000
9,800,000
$0.24
-
-
-
-
-
-
- -
8,100,000
-
-
1,000,000
1,000,000
-
-
700,000
700,000
8,100,000 1,700,000 1,700,000
$-
$-
$0.24
$0.24
$0.24
Grant Date Expiry date
Exercise
price
Balance at
start of the
year
Number
Granted
during the
year
Number
Exercised
during the
year
Number
Expired/
Forfeited
during the
year
Number
Balance at
end of the
year
Number
Vested and
exercisable
at end of the
year
Number
Consolidated – 2013
30 Aug 2010
30 Aug 2010
27 Oct 2010
Total
15 Dec 2013 $0.24 8,100,000 -
31 Dec 2014
31 Dec 2014
-
-
1,000,000
700,000
-
9,800,000 - -
-
-
$0.24
$0.24
-
-
-
-
Weighted average exercise price
$0.24
$-
$-
$-
8,100,000
1,000,000
700,000
9,800,000
$0.24
8,100,000
1,000,000
700,000
9,800,000
$0.24
8,100,000 share options expired during on 15 December 2013 and the weighted average remaining contractual life
of the above share options outstanding at the end of the period was .0.50 years. (2013: 0.64 years).
There was no amount of the equity settled share-based payment recognised in the current period in respect of the
options granted above to directors and executives (2013: $Nil).
There was no amount of the equity settled share-based payment recognised in the current period in respect of the
options granted above to consultants (2013: $4,523).Amounts previously recognised have been included under
administration and consulting expense in the statement of profit or loss and other comprehensive income.
Set out below are summaries of performance rights granted to directors and senior management:
Grant Date
Expiry date
Consolidated – 2014
Exercise
price
Balance at
start of the
year
Granted
during the
year
Exercised
during the
year
Lapsed
during the
year
Balance at
end of the
year
28 Feb 2014
30 Nov 2012
Total
28 Feb 2021
30 Nov 2019
-
$Nil
$Nil 1,237,500
1,237,500
350,000 -
412,500 -
274,167
1,292,500
762,500 - 433,333 1,566,667
75,833
357,500
Vested and
exercisable
at end of the
year
40,834
192,500
233,334
Weighted average exercise price
$Nil
$Nil
$Nil
$Nil
$Nil
$Nil
Consolidated – 2013
30 Nov 2012
Total
30 Nov 2019
$Nil
1,237,500
- 1,237,500
-
-
- - 1,237,500 -
1,237,500
-
-
Weighted average exercise price
$Nil
$Nil
$Nil
$Nil
$Nil
$Nil
The weighted average remaining contractual life of the above performance rights outstanding at the end of the period
was 5.90 years (2013: 6.42 years).
The amount of the equity settled share-based payment expense recognised in the current period in respect of the
performance rights granted above to directors and executives is $36,339 (2013: $24,069) and has been included
under employee benefits expense in the statement of profit or loss and other comprehensive income.
Notes to the consolidated financial statements
Annual Report 2014 RENASCOR RESOURCES LIMITED | 70
29 Share-based payments (continued)
(b) Exploration and evaluation share based payments (continued)
During the year ended 30 June 2012 the Company issued 750,000 ordinary shares and 750,000 unlisted $0.054
options, expiring 30 April 2016, to Hiltaba Gold Pty Ltd, for the right to earn-in pursuant to the Cowell Joint Venture
Agreement. The options vested on 30 April 2013 and can be exercised at any time up to the expiry date.
There was no amount of the equity settled share-based payment recognised in the current period in respect of the
ordinary shares above (2013: $40,000). Amounts previously recognised have been included as exploration and
evaluation expenditure within the non-current assets in the statement of financial position.
Set out below are summaries of the granted options:
Grant Date
Expiry date
Exercise
price
Balance at
start of the
year
Number
Granted
during the
year
Number
Exercised
during the
year
Number
Forfeited
during the
year
Number
Balance at
end of the
year
Number
Vested and
exercisable
at end of the
year
Number
Consolidated – 2014
20 Dec 2010
30 Apr 2012
17 Feb 2015
30 Apr 2016
$0.24
$0.054
750,000
750,000
-
-
-
-
-
-
750,000
750,000
750,000
750,000
Total
1,500,000
Weighted average exercise price
$0.147
-
$-
-
$-
-
$-
1,500,000
1,500,000
$0.147
$0.147
Grant Date
Expiry date
Exercise
price
Balance at
start of the
year
Number
Granted
during the
year
Number
Exercised
during the
year
Number
Forfeited
during the
year
Number
Balance at
end of the
year
Number
Vested and
exercisable
at end of the
year
Number
Consolidated – 2013
20 Dec 2010
30 Apr 2012
17 Feb 2015
30 Apr 2016
-
-
750,000
750,000
-
-
-
-
-
-
750,000
750,000
750,000
750,000
Total
-
1,500,000
Weighted average exercise price
$0.147
-
$-
-
$-
-
$-
1,500,000
1,500,000
$0.147
$0.147
The weighted average remaining contractual life of the above share options outstanding at the end of the period was
1.24 years (2013: 2.23 years).
There was no amount of the equity settled share-based payment recognised in the current period in respect of the
options granted above (2013: $36,230). Amounts previously recognised have been included as exploration and
evaluation expenditure within the non-current assets in the statement of financial position.
(c) Equity raising share based payments
During the year ended 30 June 2011, the Group issued 3,000,000 unlisted options, expiring 31 December 2014 to
various broker consultants involved in raising equity for the Company’s listing on the Australian Stock Exchange
(ASX). Of the options issued, 2,000,000 options were issued to an entity related to Stephen Bizzell, a director of the
Company. The options vested upon issue and can be exercised at any time up to the expiry date.
71 | RENASCOR RESOURCES LIMITED Annual Report 2014
Notes to the consolidated financial statements
29 Share-based payments (continued)
(c) Equity raising share based payments (continued)
Set out below are summaries of granted options:
Grant Date Expiry date
Exercise
price
Balance at
start of the
year
Number
Granted
during the
year
Number
Exercised
during the
year
Number
Forfeited
during the
year
Number
Balance at
end of the
year
Number
Vested and
exercisable
at end of the
year
Number
Consolidated – 2014
30 Aug 2010
15 Dec 2010
31 Dec 2014
31 Dec 2014
$0.24
$0.24
1,000,000
2,000,000
-
-
-
-
-
-
1,000,000
2,000,000
1,000,000
2,000,000
Total
3,000,000 -
-
-
3,000,000
3,000,000
Weighted average exercise price
$0.24
$-
$-
$-
$0.24
$0.24
Grant Date Expiry date
Exercise
price
Balance at
start of the
year
Number
Granted
during the
year
Number
Exercised
during the
year
Number
Forfeited
during the
year
Number
Balance at
end of the
year
Number
Consolidated – 2013
30 Aug 2010
15 Dec 2010
31 Dec 2014
31 Dec 2014
$0.24
$0.24
1,000,000
2,000,000
-
-
-
-
-
1,000,000
2,000,000
-
Vested and
exercisable
at end of the
year
Number
1,000,000
2,000,000
Total
3,000,000
-
-
-
3,000,000 3,000,000
Weighted average exercise price
$0.24
$-
$-
$-
$0.24
$0.24
The weighted average remaining contractual life of the above share options outstanding at the end of the
period was 0.5 years (2013: 1.5 years).
There was no amount of the equity settled share-based payment recognised in the current period in respect
of the options granted above. (2013: $Nil).
(d) Fair value of performance rights granted
Non-market related performance rights
The assessed fair value at grant date of performance rights with non-market related vesting conditions were
valued using the Black-Scholes model. The values derived from these models are allotted equally over the
period from grant date to vesting date. The expense recognised is adjusted to reflect the number of rights for
which the related service and non-market performance conditions are expected to be met, such that the
amount ultimately recognised as an expense is based on the number of awards that meet the related service
and non-market performance conditions at the vesting date.
Black-Scholes Model inputs
Grant date
Performance rights conditions test date
Expiry date
Weighted average exercise price
Weighted average life of the performance
rights
Weighted average underlying share price
Expected share price volatility
Weighted average risk free interest rate
Number of performance rights issued
Value (Black-Scholes) per performance
right
Expected percentage of performance
rights to vest on achievement of KPI’s
Tranche
1b#
Tranche
2b#
28/02/2014
30/06/2013
28/02/2021
$Nil
7 years
28/02/2014
30/06/2014
28/02/2021
$Nil
7 years
Tranche
3b#
28/02/2014
30/06/2015
28/02/2021
$Nil
7 years
$0.052
122.94%
2.60%
166,667
$0.052
$0.052
122.94%
2.60%
166,667
$0.052
$0.052
122.94%
2.60%
166,666
$0.052
80%
80%
80%
Total value of rights issued
$6,933
$6,933
$6,933
Notes to the consolidated financial statements
Annual Report 2014 RENASCOR RESOURCES LIMITED | 72
29 Share-based payments (continued)
(d) Fair value of performance rights granted (continued)
Market related performance rights granted
The assessed fair value at grant date of performance rights is allotted equally over the period from grant date to
vesting date. Fair values at grant date are determined using Monte Carlo Simulation. This method involves the
use of a computer model to represent the operation of a complex financial system. A characteristic of the Monte
Carlo Simulation is the generation of a large number of random samples from a specified probability distribution
or distributions to represent the role of risk in the market. Monte Carlo simulates the path of the share price
according to a probability distribution assumption. After a large number of simulations, the arithmetic average of
the outcomes, discounted to the pricing date, is calculated to represent the performance right value. Monte
Carlo Simulation is an approach that can accommodate complex exercise conditions. In particular, it can be
used when the portion of options exercised depends on some function of the whole path followed by the share
price, rather than just its value at expiry.
The following table lists the inputs to the model used to value CSP performance rights for the
year ended 30 June 2014:
Monte Carlo Simulation inputs
Grant date
Performance rights conditions test
date
Expiry date
Weighted average exercise price
Weighted average life
Weighted average underlying share
price
Expected share price volatility
Weighted average risk free interest
rate
Number of performance rights issued
Value (Monte Carlo) per performance
rights
Total value of performance rights
issued
Tranche
1#
Tranche
2#
Tranche
3#
Tranche
1a#
Tranche
2a#
Tranche
3a#
30/11/2012 30/11/2012 30/11/2012 28/02/2014 28/02/2014 28/02/2014
30/06/2013 30/06/2014 30/06/2015 30/06/2013 30/06/2014 30/06/2015
30/11/2019 30/11/2019 30/11/2019 28/02/2021 28/02/2021 28/02/2021
$Nil
7 years
$Nil
7 years
$Nil
7 years
$Nil
7 years
$Nil
7 years
$Nil
7 years
$0.082
$0.082
$0.082
$0.052
$0.052
$0.052
94.12%
94.12%
94.12%
122.94%
122.94%
122.94%
2.50%
2.50%
2.50%
2.60%
2.60%
2.60%
412,500
412,500
412,500
87,500
87,500
87,500
$0.0311
$0.0323
$0.0333
$0.0231
$0.0299
$0.0338
$12,829 $13,324
$13,736
$2,021 $2,616
$2,958
# Historical volatility of a group of comparable companies has been used as the basis of determining expected
share price volatility, as it is assumed that this is indicative of future movements. No adjustment has been made
to the life of the option based on no past history regarding any expected early exercise or any variation of the
expiry date. Accordingly the expected life of the options has been taken to the full period of time from grant
date to expiry date, which may fail to eventuate in the future.
The board determines the number of vested performance rights as at the test date based on assessment of
achievement of the market based performance conditions.
If the performance conditions have not been met, performance rights lapse and do not carry forward to the next
test date. Performance rights that have not previously been exercised may lapse for a controllable event which
causes cessation of employment.
(e) General terms and conditions
All of these options and performance rights were issued by the Company and entitle the holder to one ordinary
share in the Company for each option and performance rights that may be exercised. The options and
performance rights were granted for no consideration. Once vested the options and performance rights can
be exercised at any time up to the expiry date. Options and performance rights granted carry no dividend or
voting rights.
During the periods covered by the above tables, 8,100,000 options expired and 433,333 performance rights
lapsed.
73 | RENASCOR RESOURCES LIMITED Annual Report 2014
Notes to the consolidated financial statements
30 Parent Entity financial information
(a) Summary financial information
The individual financial statements for the Parent Entity show the following aggregate amounts:
Parent Entity
Statement of Financial Position
Current assets
Non-current assets
Total assets
Current liabilities
Non-current liabilities
Total liabilities
Net assets
Shareholders' equity
Contributed equity
Share-based payment reserves
Retained earnings
Total equity
Profit / (loss) for the year
Total comprehensive income
30 June
2014
$
30 June
2013
$
1,614,357
2,909,513
7,201,170
8,815,527
6,205,522
9,115,035
307,622
25,422
333,044
375,347
8,790
384,137
8,482,483
8,730,898
10,803,970
1,018,436
(3,339,923)
8,482,483
9,798,800
982,097
(2,049,999)
8,730,898
(1,289,924)
(1,289,924)
(510,795)
(510,795)
(b) Contingent liabilities of the Parent Entity
The Parent Entity has entered into Asset Sale Agreements with Hillment Pty Ltd to acquire tenement EL 4570
and a similar agreement with Hiltaba Gold Pty Ltd for EL4707. Under each agreement, the company has
granted a 1% royalty of the Net Smelter Return. The parent entity did not have any contingent liabilities as at
30 June 2014.
(c) Contractual commitments for the acquisition of property, plant or equipment
As at 30 June 2014, the Parent Entity had no contractual commitments for the acquisition of property, plant or
equipment.
(d) Guarantees
As at 30 June 2014, the Parent Entity had not guaranteed the debts of any subsidiary Company.
Notes to the consolidated financial statements
Annual Report 2014 RENASCOR RESOURCES LIMITED | 74
31 Application of new and revised Accounting Standards
(a) New and amended standards and interpretations
The consolidated entity has adopted all of the new, revised or amending Accounting Standards and Interpretations
issued by the Australian Accounting Standards Board ('AASB') that are mandatory for the current reporting period.
Any new, revised or amending Accounting Standards or Interpretations that are not yet mandatory have not been
early adopted.
Any significant impact on the accounting policies of the consolidated entity from the adoption of these Accounting
Standards and Interpretations are disclosed below. The adoption of these Accounting Standards and
Interpretations did not have any significant impact on the financial performance or position of the consolidated
entity.
The following Accounting Standards and Interpretations are most relevant to the consolidated entity:
AASB 10 Consolidated Financial Statements
The consolidated entity has applied AASB 10 from 1 July 2013, which has a new definition of 'control'. Control
exists when the reporting entity is exposed, or has the rights, to variable returns from its involvement with another
entity and has the ability to affect those returns through its 'power' over that other entity. A reporting entity has
power when it has rights that give it the current ability to direct the activities that significantly affect the investee's
returns. The consolidated entity not only has to consider its holdings and rights but also the holdings and rights of
other shareholders in order to determine whether it has the necessary power for consolidation purposes.
AASB 11 Joint Arrangements
The consolidated entity has applied AASB 11 from 1 July 2013. The standard defines which entities qualify as joint
arrangements and removes the option to account for joint ventures using proportional consolidation. Joint
ventures, where the parties to the agreement have the rights to the net assets are accounted for using the equity
method. Joint operations, where the parties to the agreements have the rights to the assets and obligations for the
liabilities, will account for its share of the assets, liabilities, revenues and expenses separately under the
appropriate classifications.
AASB 12 Disclosure of Interests in Other Entities
The consolidated entity has applied AASB 12 from 1 July 2013. The standard contains the entire disclosure
requirement associated with other entities, being subsidiaries, associates, joint arrangements (joint operations and
joint ventures) and unconsolidated structured entities. The disclosure requirements have been significantly
enhanced when compared to the disclosures previously located in AASB 127 'Consolidated and Separate
Financial Statements', AASB 128 'Investments in Associates', AASB 131 'Interests in Joint Ventures' and
Interpretation 112 'Consolidation - Special Purpose Entities'.
AASB 13 Fair Value Measurement and AASB 2011-8 Amendments to Australian Accounting Standards arising
from AASB 13
The consolidated entity has applied AASB 13 and its consequential amendments from 1 July 2013. The standard
provides a single robust measurement framework, with clear measurement objectives, for measuring fair value
using the 'exit price' and provides guidance on measuring fair value when a market becomes less active. The
'highest and best use' approach is used to measure non-financial assets whereas liabilities are based on transfer
value. The standard requires increased disclosures where fair value is used.
75 | RENASCOR RESOURCES LIMITED Annual Report 2014
Notes to the consolidated financial statements
31 Application of new and revised Accounting Standards (continued)
(a) New and amended standards and interpretations (continued)
AASB 119 Employee Benefits (September 2011) and AASB 2011-10 Amendments to Australian Accounting
Standards arising from AASB 119 (September 2011)
The consolidated entity has applied AASB 119 and its consequential amendments from 1 July 2013. The standard
eliminates the corridor approach for the deferral of gains and losses; streamlines the presentation of changes in
assets and liabilities arising from defined benefit plans, including requiring remeasurements to be presented in
other comprehensive income; and enhances the disclosure requirements for defined benefit plans. The standard
also changed the definition of short-term employee benefits, from 'due to' to 'expected to' be settled within 12
months. Annual leave that is not expected to be wholly settled within 12 months is now discounted allowing for
expected salary levels in the future period when the leave is expected to be taken.
AASB 127 Separate Financial Statements (Revised), AASB 128 Investments in Associates and Joint Ventures
(Reissued) and AASB 2011-7 Amendments to Australian Accounting Standards arising from the Consolidation and
Joint Arrangements Standards
The consolidated entity has applied AASB 127, AASB 128 and AASB 2011-7 from 1 July 2013. AASB 127 and
AASB 128 have been modified to remove specific guidance that is now contained in AASB 10, AASB 11 and
AASB 12 and AASB 2011-7 makes numerous consequential changes to a range of Australian Accounting
Standards and Interpretations. AASB 128 has also been amended to include the application of the equity method
to investments in joint ventures.
AASB 2012-2 Amendments to Australian Accounting Standards - Disclosures - Offsetting Financial Assets and
Financial Liabilities
The consolidated entity has applied AASB 2012-2 from 1 July 2013. The amendments enhance AASB 7 'Financial
Instruments: Disclosures' and requires disclosure of information about rights of set-off and related arrangements,
such as collateral agreements. The amendments apply to recognised financial instruments that are subject to an
enforceable master netting arrangement or similar agreement.
AASB 2012-5 Amendments to Australian Accounting Standards arising from Annual Improvements 2009-2011
Cycle
The consolidated entity has applied AASB 2012-5 from 1 July 2013. The amendments affect five Australian
Accounting Standards as follows: Confirmation that repeat application of AASB 1 'First-time Adoption of Australian
Accounting Standards' is permitted; Clarification of borrowing cost exemption in AASB 1; Clarification of the
comparative information requirements when an entity provides an optional third column or is required to present a
third statement of financial position in accordance with AASB 101 'Presentation of Financial Statements';
Clarification that servicing of equipment is covered by AASB 116 'Property, Plant and Equipment', if such
equipment is used for more than one period; clarification that the tax effect of distributions to holders of equity
instruments and equity transaction costs in AASB 132 'Financial Instruments: Presentation' should be accounted
for in accordance with AASB 112 'Income Taxes'; and clarification of the financial reporting requirements in AASB
134 'Interim Financial Reporting' and the disclosure requirements of segment assets and liabilities.
AASB 2012-10 Amendments to Australian Accounting Standards - Transition Guidance and Other Amendments
The consolidated entity has applied AASB 2012-10 amendments from 1 July 2013, which amends AASB 10 and
related standards for the transition guidance relevant to the initial application of those standards. The
amendments clarify the circumstances in which adjustments to an entity's previous accounting for its involvement
with other entities are required and the timing of such adjustments.
AASB 2011-4 Amendments to Australian Accounting Standards to Remove Individual Key Management Personnel
Disclosure Requirement
The consolidated entity has applied 2011-4 from 1 July 2013, which amends AASB 124 'Related Party
Disclosures' by removing the disclosure requirements for individual key management personnel ('KMP').
Corporations and Related Legislation Amendment Regulations 2013 and Corporations and Australian Securities
and Investments Commission Amendment Regulation 2013 (No.1) now specify the KMP disclosure requirements
to be included within the directors' report.
Notes to the consolidated financial statements
Annual Report 2014 RENASCOR RESOURCES LIMITED | 76
31 Application of new and revised Accounting Standards (continued)
(b) New Accounting Standards and Interpretations not yet mandatory or early adopted
Australian Accounting Standards and Interpretations that have recently been issued or amended but are not yet
mandatory, have not been early adopted by the consolidated entity for the annual reporting period ended 30 June
2014. The consolidated entity's assessment of the impact of these new or amended Accounting Standards and
Interpretations, most relevant to the consolidated entity, are set out below.
AASB 9 Financial Instruments and its consequential amendments
This standard and its consequential amendments are applicable to annual reporting periods beginning on or after
1 January 2017 and completes phases I and III of the IASB's project to replace IAS 39 (AASB 139) 'Financial
Instruments: Recognition and Measurement'. This standard introduces new classification and measurement
models for financial assets, using a single approach to determine whether a financial asset is measured at
amortised cost or fair value. The accounting for financial liabilities continues to be classified and measured in
accordance with AASB 139, with one exception, being that the portion of a change of fair value relating to the
entity's own credit risk is to be presented in other comprehensive income unless it would create an accounting
mismatch. Chapter 6 'Hedge Accounting' supersedes the general hedge accounting requirements in AASB 139
and provides a new simpler approach to hedge accounting that is intended to more closely align with risk
management activities undertaken by entities when hedging financial and non-financial risks. The consolidated
entity will adopt this standard and the amendments from 1 July 2017 but the impact of its adoption is yet to be
assessed by the consolidated entity.
AASB 2012-3 Amendments to Australian Accounting Standards - Offsetting Financial Assets and Financial
Liabilities
The amendments are applicable to annual reporting periods beginning on or after 1 January 2014. The
amendments add application guidance to address inconsistencies in the application of the offsetting criteria in
AASB 132 'Financial Instruments: Presentation', by clarifying the meaning of 'currently has a legally enforceable
right of set-off'; and clarifies that some gross settlement systems may be considered to be equivalent to net
settlement. The adoption of the amendments from 1 July 2014 will not have a material impact on the consolidated
entity.
AASB 2013-3 Amendments to AASB 136 - Recoverable Amount Disclosures for Non-Financial Assets
These amendments are applicable to annual reporting periods beginning on or after 1 January 2014. The
disclosure requirements of AASB 136 'Impairment of Assets' have been enhanced to require additional
information about the fair value measurement when the recoverable amount of impaired assets is based on fair
value less costs of disposals. Additionally, if measured using a present value technique, the discount rate is
required to be disclosed. The adoption of these amendments from 1 July 2014 may increase the disclosures by
the consolidated entity.
AASB 2013-4 Amendments to Australian Accounting Standards - Novation of Derivatives and Continuation of
Hedge Accounting
These amendments are applicable to annual reporting periods beginning on or after 1 January 2014 and amends
AASB 139 'Financial Instruments: Recognition and Measurement' to permit continuation of hedge accounting in
circumstances where a derivative (designated as hedging instrument) is novated from one counter party to a
central counterparty as a consequence of laws or regulations. The adoption of these amendments from 1 July
2014 will not have a material impact on the consolidated entity.
AASB 2013-5 Amendments to Australian Accounting Standards - Investment Entities
These amendments are applicable to annual reporting periods beginning on or after 1 January 2014 and allow
entities that meet the definition of an 'investment entity' to account for their investments at fair value through profit
or loss. An investment entity is not required to consolidate investments in entities it controls, or apply AASB 3
'Business Combinations' when it obtains control of another entity, nor is it required to equity account or
proportionately consolidate associates and joint ventures if it meets the criteria for exemption in the standard. The
adoption of these amendments from 1 July 2014 will have no impact on the consolidated entity.
77 | RENASCOR RESOURCES LIMITED Annual Report 2014
Notes to the consolidated financial statements
31 Application of new and revised Accounting Standards (continued)
(b) New Accounting Standards and Interpretations not yet mandatory or early adopted (continued)
Annual Improvements to IFRSs 2010-2012 Cycle
These amendments are applicable to annual reporting periods beginning on or after 1 July 2014 and affects
several Accounting Standards as follows: Amends the definition of 'vesting conditions' and 'market condition' and
adds definitions for 'performance condition' and 'service condition' in AASB 2 'Share-based Payment'; Amends
AASB 3 'Business Combinations' to clarify that contingent consideration that is classified as an asset or liability
shall be measured at fair value at each reporting date; Amends AASB 8 'Operating Segments' to require entities to
disclose the judgements made by management in applying the aggregation criteria; Clarifies that AASB 8 only
requires a reconciliation of the total reportable segments assets to the entity's assets, if the segment assets are
reported regularly; Clarifies that the issuance of AASB 13 'Fair Value Measurement' and the amending of AASB
139 'Financial Instruments: Recognition and Measurement' and AASB 9 'Financial Instruments' did not remove the
ability to measure short-term receivables and payables with no stated interest rate at their invoice amount, if the
effect of discounting is immaterial; Clarifies that in AASB 116 'Property, Plant and Equipment' and AASB 138
'Intangible Assets', when an asset is revalued the gross carrying amount is adjusted in a manner that is consistent
with the revaluation of the carrying amount (i.e. proportional restatement of accumulated amortisation); and
Amends AASB 124 'Related Party Disclosures' to clarify that an entity providing key management personnel
services to the reporting entity or to the parent of the reporting entity is a 'related party' of the reporting entity. The
adoption of these amendments from 1 July 2014 will not have a material impact on the consolidated entity.
Annual Improvements to IFRSs 2011-2013 Cycle
These amendments are applicable to annual reporting periods beginning on or after 1 July 2014 and affects four
Accounting Standards as follows: Clarifies the 'meaning of effective IFRSs' in AASB 1 'First-time Adoption of
Australian Accounting Standards'; Clarifies that AASB 3 'Business Combination' excludes from its scope the
accounting for the formation of a joint arrangement in the financial statements of the joint arrangement itself;
Clarifies that the scope of the portfolio exemption in AASB 13 'Fair Value Measurement' includes all contracts
accounted for within the scope of AASB 139 'Financial Instruments: Recognition and Measurement' or AASB 9
'Financial Instruments', regardless of whether they meet the definitions of financial assets or financial liabilities as
defined in AASB 132 'Financial Instruments: Presentation'; and Clarifies that determining whether a specific
transaction meets the definition of both a business combination as defined in AASB 3 'Business Combinations'
and investment property as defined in AASB 140 'Investment Property' requires the separate application of both
standards independently of each other. The adoption of these amendments from 1 July 2014 will not have a
material impact on the consolidated entity.
Directors’ Declaration
Annual Report 2014 RENASCOR RESOURCES LIMITED | 78
In the directors' opinion:
Renascor Resources Limited
Directors' declaration
30 June 2014
(a)
(b)
(c)
the financial statements and notes set out on pages 40 to 77 are in accordance with the Corporations
Act 2001, including:
(i)
complying with Accounting Standards, the Corporations Regulations 2001 and other
mandatory professional reporting requirements, and
give a true and fair view of the Group's financial position as at 30 June 2014 and of its
performance for the financial year ended on that date, and
(ii)
the remuneration disclosures included on pages 18 to 26 of the directors’ report (as part of the audited
Remuneration Report) for the year ended 30 June 2014, comply with section 300A of the Corporations
Act 2001.
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
Note 1(a) confirms that the financial statements also comply with International Financial Reporting Standards as
issued by the International Accounting Standards Board.
The directors have been given the declarations by the Managing Director and Chief Financial Officer required by
section 295A of the Corporations Act 2001.
This declaration is made in accordance with a resolution of the directors.
David Christensen
Director
Adelaide
Date: 30 September 2014
79 | RENASCOR RESOURCES LIMITED Annual Report 2014
Independent auditor’s report to members
Independent auditor’s report to members
Independent auditor’s report to members
Annual Report 2014 RENASCOR RESOURCES LIMITED | 80