Annual Report
2015
DIRECTORS
AUSTRALIAN BUSINESS NUMBER
90 135 531 341
Stephen Bizzell
David Christensen
Geoffrey McConachy
Andrew Martin
Chris Anderson
SECRETARY
Angelo Gaudio
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
Arion Legal
Level 1, 214 Greenhill Road
Eastwood SA 5063, Australia
Phone: +61 8 8133 1018
Fax: +61 8 8133 1018
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
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 person as defined by the 2012 edition of the
Australasian code for reporting of exploration results, mineral resources and ore reserves (the JORC code,
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.
Renascor Resources Limited
Annual Report June 2015
Contents
Chairman’s letter to shareholders
Review of operations
Directors' report
Auditor's independence declaration
Shareholder information
Financial statements
Consolidated statement of profit or loss and other comprehensive income for the year ended 30 June 2015
Consolidated statement of financial position as at 30 June 2015
Consolidated statement of changes in equity for the year ended 30 June 2015
Consolidated statement of cash flows for the year ended 30 June 2015
Notes to the consolidated financial statements for the year ended 30 June 2015
Directors' declaration
Independent auditor's report to the members
1
2
21
35
36
40
41
42
43
44
76
77
Please note Corporate Governance Statement is available on the Company’s website www.renascor.com.au/company
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 20 and in the directors' report on pages 21 to 34, both of which are not part of
these financial statements.
The financial statements were authorised for issue by the directors on 28 September 2015. 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 2015
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 2015.
Despite continued difficult conditions for junior explorers on the Australian share market, Renascor made a
number of significant breakthroughs during the year. At our Eastern Eyre project, in the southern portion of
South Australia’s Olympic Dam copper belt, drilling at our Extension Tank and 1050 East prospects intersected
significant levels of copper and associated minerals, suggesting high potential for massive copper sulphides
and associated minerals within the project area.
We also recently secured the Munglinup project, a strategic tenement holding within the Albany-Fraser Range
province of Western Australia that offers immediate, drill-ready prospects for graphite and nickel sulphide.
Whilst this significant progress has not been fully reflected in our current share price, there is strong reason to
believe upcoming exploration programs on these projects 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 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. Similarly, we employed this strategy in securing
the Munglinup project, where we will leverage off previous reconnaissance exploration work, as we prepare for
initial drilling later this year.
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. The portfolio also includes our Farina and Carnding projects,
which offer excellent prospects in copper and gold. In addition to the Munglinup project, we have added
important exploration tenure, acquiring adjacent tenements at our Eastern Eyre and Farina projects. To limit
non-essential expenditure, we have also relinquished tenements considered less prospective. Our new
tenements, together with Eastern Eyre, Munglinup 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 and other administrative costs. 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 2015 RENASCOR RESOURCES LIMITED | 2
Review of Operations
Figure 1. South Australian Project Map
3 | RENASCOR RESOURCES LIMITED Annual Report 2015
Review of operations
Key Project Review
Project
Prospect(s)
Location
Primary
target(s)
Status
Eastern
Eyre
Extension
Tank
Olympic Dam
copper belt,
Southern Gawler
Craton (SA)
Copper,
IOCG
Eastern
Eyre
1050 East
Olympic Dam
copper belt,
Southern Gawler
Craton (SA)
Copper
(cid:1) High-amplitude gravity anomaly identified
within major structural corridor
(cid:1) Maiden drill program intersected broad
intervals of strongly anomalous copper and
hematite alteration
(cid:1) Ground gravity and magnetic surveys
completed
(cid:1) Follow-up drilling intersected anomalous
copper within extensive mafic volcanic
sequence
(cid:1) Reconnaissance holes drilled immediately to
the east intersected strongly anomalous lead,
zinc and copper
(cid:1) Diamond drilling intersected broad copper
mineralisation down-dip of previously
intersected high-grade, massive sulphide
intersections
(cid:1) Follow-on drill targets for additional massive
sulphide development identified
Eastern
Eyre
Nilginee,
Knights
Olympic Dam
copper belt,
Southern Gawler
Craton (SA)
(cid:1) Surface sampling returned anomalous copper
Copper,
IOCG
values over gravity targets
(cid:1) Reconnaissance drilling intersected
anomalous zinc, copper and lead
Eastern
Eyre
Freshwell
Olympic Dam
copper belt,
Southern Gawler
Craton (SA)
Copper,
IOCG
(cid:1) Geochemical (copper-zinc) anomaly identified
in fault splay along-strike from 1050 East
(cid:1) Reconnaissance drilling intersected
anomalous zinc, copper and lead
Review of operations
Annual Report 2015 RENASCOR RESOURCES LIMITED | 4
Key Project Review (continued)
Project
Prospect(s)
Location
Primary
target(s)
Status
Eastern Eyre
Highway
Olympic Dam
copper belt,
Southern Gawler
Craton (SA)
Copper, IOCG
(cid:1) Surface sampling returned
anomalous copper values over
gravity target
(cid:1) Geophysical modelling completed
for drill-testing
Eastern Eyre
Ozone,
Laura,
McMahons,
Cocoa Dam
Olympic Dam
copper belt,
Southern Gawler
Craton (SA)
Copper, IOCG
Munglinup
Multiple
Albany Fraser
Range (WA)
Graphite,
nickel-sulphide
Carnding
Sunshine,
others
Central Gawler
Craton (SA)
Gold
(cid:1) High-amplitude gravity and
magnetic targets identified
along-strike of 1050 East and
Extension Tank
(cid:1) Geophysical modelling completed
for drill-testing
(cid:1) New project area acquired
(cid:1) Conductive targets identified for
drill-testing
(cid:1) Additional targets identified for
follow-up ground work
(cid:1) Data review completed on
advanced gold exploration project
(cid:1) Multiple geochemical and
geophysical targets identified,
including Sunshine prospect, with
previous drill results including 2
metres @ 6.65 g/T gold
Warrior/Frome
Multiple
Gawler
Craton/Frome Basin
(SA)
Sandstone-
-hosted
uranium
(cid:1) Drill programs prepared for
uranium targets
Farina
Multiple
Adelaide Fold Belt
(SA)
Sedimentary
copper
(cid:1) Elevated copper and gold
prospects identified for drill-testing
5 | RENASCOR RESOURCES LIMITED Annual Report 2015
Review of operations
Eastern Eyre
Location:
Southern Gawler Craton (South Australia)
Tenements:
ELs 4721, 5012 and 5236 (100%) and ELs 5400 and 5401 (option to acquire 100%)
Area:
Target:
1,514 km2
Copper and associated mineralisation
Renascor’s Eastern Eyre project contains multiple high priority targets for large-scale copper mineralisation.
See Figure 2. The project area includes large portions of the Roopena-Angle Dam fault corridor, a largely
untested zone that extends over approximately 40 kilometres. Renascor considers this structure to be a major
conduit for mineralisation sourced from the adjacent Hiltaba-age granites immediately east of the fault. These
granites are associated with mineralisation at the major deposits (e.g., Olympic Dam and Prominent Hill) within
the Olympic Dam copper belt. Within the Angle Dam fault trend, at the 1050 East prospect, Renascor has
intersected high-grade copper-cobalt-silver mineralisation, with results including 13m @ 1.45% Cu, 66 ppm Ag
and 0.17% Co (from 215m), including a massive sulphide interval of 8m @ 2.2% Cu, 92 ppm Ag and 0.26% Co.
Renascor considers unexplained gravity, magnetic and geochemical anomalies within the Angle Dam fault
structure, as well as the parallel Roopena fault structure, as particularly prospective targets for economic
copper ore bodies. During the reporting period, Renascor identified multiple targets within this fault corridor,
completed ground sampling and geophysical surveys over these targets and subsequently undertook initial and
follow-up drilling on high priority copper targets.
Figure 2. Eastern Eyre project, Eastern Eyre project, showing identified gravity,
magnetic and geochemical targets
Review of operations
Annual Report 2015 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 Ltd in 2009 of
the Hillside copper deposit to the south of the
project area has reinforced the importance of
the faulting zone in the deposition of ore
bodies. Accordingly, Renascor considers
to
targets
the
Roopena-Angle Dam
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
proximate
fault
located
to
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 Renascor’s project area extending west over the Angle
Dam fault zone. While Hillside’s discovery, as well as increased availability of geophysical targeting to
modern explorers, increased the attractiveness of prospects within the faulting zone within Renascor’s project
area, 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 Renascor’s project area.
With these procedures clarified, Renascor successfully negotiated an access agreement with the Department
of Defence in 2013.
Renascor’s initial activities at Easter Eyre included a program of pre-drilling exploration over the project area,
including 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 Extension Tank, 1050 East and other targets for first-pass drilling.
7 | RENASCOR RESOURCES LIMITED Annual Report 2015
Review of operations
Eastern Eyre (continued)
Extension Tank
Extension Tank is defined by a discreet, high amplitude (6MGal) gravity anomaly within the Roopena fault
zone. Extension Tank also has a strong magnetic signature, offering a gravity-magnetic association
comparable to large IOCG-style deposits within the Olympic Dam domain. Previous drilling within the
Roopena fault at the Spencer prospect (see Figure 2) included intersections of extensive IOCG-alteration and
elevated copper. As a result of the density of the Extension Tank anomaly, in addition to its magnetic
association and discreet location within the Roopena fault structure, during the reporting period, Renascor
undertook reconnaissance drill testing of Extension Tank, to test for possible IOCG development within the
interpreted high-density zones of the gravity anomaly. Prior to Renascor’s recent drilling, the interpreted
gravity anomaly had not been adequately drill-tested, with limited shallow drilling over the southern and western
portions not explaining the gravity anomaly. Renascor completed two reverse circulation holes at Extension
Tank, targeting the most central of three interpreted high-density source regions for the observed gravity
anomaly. See Figure 4.
Figure 4. Extension Tank. Gravity image showing Renascor drill collars and down hole copper
assay bar graphs, high-density density target zones and shallow historical drill hole collars
Review of operations
Annual Report 2015 RENASCOR RESOURCES LIMITED | 8
Eastern Eyre (continued)
Extension Tank (continued)
Hole 14RETRC001 was drilled to 198 metres to test the eastern portion of the central gravity zone and
intersected strongly anomalous copper sulphide mineralisation, including chalcopyrite, with results including 8m
at 0.45% Cu from 64 metres. Mineralisation is associated with fine crystalline hematite within a brecciated
metabasalt. See Figure 5. Hole 14RETRC002, located 300 metres to the north of hole 14RETRC001, was
completed to 162 metres to test for continuation of the interpreted density target zone intersected in hole
14RETRC001. Hole 14RETRC002 intersected 42 metres of intermittent hematite alteration from 120 metres to
end-of-hole, with intermittent intervals of minor, fine-grained copper sulphide mineralisation. The level of
alteration appeared to be increasing towards the end-of-hole, however, ground conditions prevented the
continuation of drilling in the initial drilling program.
Figure 5. Hole 14RETRC001. Sample of RC chips from 68 metres to 69 metres depth
Following completion of the initial drilling at Extension Tank, Renascor completed infill gravity and magnetic
surveys to confirm and refine the target geometries for IOCG-style responses. The detailed gravity coverage
suggested strengthening and extension of the gravity zone to the south of Renascor's existing scout drill holes
(holes ETRC001 and ETRC002). The magnetic survey confirmed a strongly magnetic East-West trending zone
south of hole ETRC001 and immediately north of the gravity peak.
9 | RENASCOR RESOURCES LIMITED Annual Report 2015
Review of operations
Eastern Eyre (continued)
Extension Tank (continued)
Renascor subsequently completed nine reverse circulation drill holes for approximately 1,600 metres, testing the
previously identified geophysical anomalies, as well as anomalies to the immediate east, proximate to the Angle
Dam fault trend. See Figure 6. The cost of drilling was partially funded by a grant awarded under South
Australia’s Plan for Accelerating Exploration (PACE) initiative.
Drilling over the Extension Tank geophysical anomalies intersected a thick sequence of predominantly
fine-grained mafic meta-basalts, inferred as equivalents to Lower Gawler Range Volcanics. Low-level sulphide
mineralization was intersected within the main geophysical anomalies, with anomalous copper levels.
Renascor considers that the mafic sequence is the likely cause of the strong gravity and magnetic features at
Extension Tank.
Figure 6. Eastern Eyre project, showing drill locations proposed induced polarisation coverage
Drilling to the immediate east of Extension Tank, adjacent to the Angle Dam fault, intersected strongly
anomalous lead, zinc and copper in two reconnaissance holes, ETRC09 and ETRC11. In addition to
Renascor’s drill results at 1050 East, historical shallow drilling in proximity to the fault structure also returned
anomalous geochemical results, including 10m @ 810 ppm Cu and 76 ppm Co (from 20m) in hole RM 39 and
3m @ 580 ppm Cu (from 27m to end of hole) in hole ER398. See Figure 6. These historical results, coupled
with Renascor’s recent drill results at 1050 East and east of Extension Tank, suggest that the Angle Dam fault
structure is extensively mineralised and offers high potential for economic deposits of massive copper sulphides
and associated minerals.
Review of operations
Annual Report 2015 RENASCOR RESOURCES LIMITED | 10
Eastern Eyre (continued)
1050 East
The 1050 East prospect is located to the north of Extension Tank at the margin of the Roopena-Angle Dam fault
structure. See Figure 2. In 2014, Renascor discovered high-grade copper-cobalt-silver mineralisation at 1050
East, with results including 13m @ 1.45% Cu, 66 ppm Ag and 0.17% Co (from 215m) in hole EEDD012,
including a massive sulphide interval of 8m at 2.2% Cu, 92 ppm Ag and 0.26% Co (from 217m). See Figure 7.
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.
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)
EEDD027
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)
EERCDD010
4m @ 1.24% Cu and 65.8 ppm Ag
(from 67m) and 9m @ 1.07% Cu and
29 ppm Ag (from 75m) (EEDD013)
Figure 7. 1050 East massive sulphide zone showing drill holes >125m, with significant results
During the recently completed year, Renascor’s activities included drilling two diamond holes targeting
extensions to massive sulphide zones intersected in Renascor’s initial drill programs at 1050 East. The two
holes were completed on Section 6374400N (which includes hole EEDD012) and Section 6374000N. In earlier
drilling of up to approximately 200 metres, Renascor intersected multiple +1.0% copper intersections over both
Sections 6374400N and 6374000N. Results from the drilling suggest continued sulphide copper development
over both Sections 6374400N and 6374000N in areas immediately down-dip of previously intersected copper
sulphides. Hole EEDD027 was drilled to 381 metres to collect additional information down-dip of hole
EEDD012, where results included intersections of massive sulphides over 8 metres from approximately 200
metres. Hole EEDD027 intersected sulphide mineralisation with best copper intercepts of 23m @ 0.18% Cu
(from 244m) including 4m @ 0.48% Cu (from 263m), 2m @ 0.31% Cu (from 231m) and 68m @ 400ppm Cu
(from 16m). Hole EERCDD010 was drilled 400 metres to the south of EEDD027 to test for similar sulphide
mineralisation on Section 6374000N, where previous results included copper mineralised zones in drilling up to
approximately 200 metres, intersecting minor copper mineralisation.
11 | RENASCOR RESOURCES LIMITED Annual Report 2015
Review of operations
Eastern Eyre (continued)
1050 East (continued)
The results continue to confirm that the 1050 East prospect hosts significant copper mineralisation that appears
structurally related to faulting within the Roopena-Angle Dam fault structure. At 1050 East, Renascor
intersected copper mineralisation within the Angle Dam Volcanics sequence, the same stratigraphy that hosts
copper mineralisation within the north-northeast trending Freshwell fault splay. See Figure 8. Renascor is
continuing its research into the timing and style of this unique style of mineralisation within the Gawler Craton in
collaboration with the Geological Survey of South Australia, Department of State Development Department.
1050 East is situated at the margin of this fault splay and the Angle Dam fault structure, which Renascor
considers a likely conduit for mineralisation sourced from nearby Hiltaba-age granite. The limited drilling that
has occurred within the Freshwell fault splay has confirmed the presence of significant copper and lead at the
Freshwell prospect. This suggests to Renascor that the splay has high potential to contain additional copper
development of the type intersected by Renascor at 1050 East.
Figure 8. 1050 East prospect area, showing recently interpreted Freshwell fault splays and
historic drill holes (in red and blue) (underlying image from McAvaney and Wade, May 2014)
Review of operations
Annual Report 2015 RENASCOR RESOURCES LIMITED | 12
Eastern Eyre (continued)
Other prospects at Eastern Eyre
In addition to the Extension Tank and 1050 East prospects, Renascor considers the wider Roopena-Angle Dam
fault structure to offer highly prospective and untested targets for large-scale copper mineralisation. The results
at Extension Tank and the discovery of high-grade copper at 1050 East have highlighted the significance of the
Roopena-Angle Dam fault, which extends through the project area for approximately 40 kilometres, as a
potential transport system and host for extensive copper mineralisation. Significantly, only limited exploration
has been conducted along this trend. In addition to conducting drilling at Extension Tank and 1050 East, during
the reporting period, Renascor expanded its exploration activities to include reconnaissance testing and initial
drill testing of other similarly prospective copper prospects within the fault-controlled systems within the project
area. Significant exploration activities undertaken during the year include:
•
Freshwell. At Freshwell, Renascor completed two reverse circulation holes totalling 186 metres to test
for copper and associated mineralisation similar to that intersected by Renascor at its 1050 East
prospect. The initial hole (14REERC028) intersected Angle Dam porphyry located approximately 800
metres from known outcrop and returned 8m @ 0.21% Pd, 117 ppm Zn and 73 ppm Cu from the
surface. The second hole (14REERC029) intersected undeformed black shales and oxidised
sandstones, with 10m @ 0.24% Pb, 345 ppm Zn and 693 ppm Cu from 24 metres down hole depth.
Renascor does not currently plan to conduct additional drilling on the Freshwell prospect.
• Nilginee. Renascor completed one reverse circulation hole to 138 metres to test a 3 MGal amplitude
gravity anomaly and co-incident multi-element soil geochemical anomaly at the Nilginee prospect. The
hole intersected a broad zone of low-grade mineralisation from 82 metres that included 56m @ 468
ppm Zn, 352 ppm Cu and 102 ppm Pb. Follow-up drilling at Nilginee will be considered after additional
geophysical studies.
• Knights. Renascor completed one reverse circulation hole to 120 metres to test Knights, a gravity
anomaly located approximately 5 kilometres south of Nilginee. The target was also a co-incident
multi-element soil geochemical anomaly. The hole intersected a broad zone of low-grade
mineralisation from surface that included 64m @ 475 ppm Zn, 145 ppm Cu and 29 ppm Pb, including 8
metes @ 0.13% Zn from 16 metres. Follow-up drilling at Knights will be considered after additional
geophysical studies.
Next steps
Renascor’s initial exploration work at Eastern Eyre, including the discovery of high-grade, massive sulphide at
1050 East and the discovery of widespread copper mineralisation at Extension Tank, has highlighted the
importance of the major fault structures in the project area. In particular, recent results suggest that the Angle
Dam fault offers significant untested targets for economic concentrations of copper. Within this structure, in
addition to 1050 East and the recently drilled area immediately east of Extension Tank, Renascor has identified
additional untested gravity, magnetic and geochemical drill targets. As a next-step, Renascor plans to
undertake geophysical testing, including an extensive induced polarisation survey to identify sulphide zones,
after which it intends to to drill-test identified targets.
13 | RENASCOR RESOURCES LIMITED Annual Report 2015
Review of operations
Munglinup
Location:
Albany Fraser Range (Western Australia)
Tenements:
E74/517, E74/518, E74/523, E74/531, E74/538, E74/544, E74/545 (acquiring 100%)
Area:
Target:
579 km2
Graphite and nickel sulphide
The Munglinup project is located within the Albany-Fraser Range province of Western Australia between the
regional towns of Esperance and Ravensthorpe. See Figure 9. There are several significant minerals
deposits located adjacent or proximate to the project area, including the Halbert’s graphite deposit, a
high-grade, coarse flake graphite deposit located along-strike and contiguous to EL74/517 and EL74/518.
First Quantum Mineral Ltd’s nickel mine is located approximately 40km to the west of EL74/518, and Poseidon
Nickel Limited’s Maggie Hays and Emily Ann nickel sulphide deposits are located approximately 50km north
EL74/544. Renascor considers the project area to offer high prospectivity for both graphite and nickel
sulphide, and it has identified multiple drill-ready targets.
Figure 9. Munglinup project (in blue), showing major mineral occurrences and regional
structures
Review of operations
Annual Report 2015 RENASCOR RESOURCES LIMITED | 14
Munglinup (continued)
Graphite prospects
Within the project area, Renascor has
identified multiple drill-ready targets for
coarse flake, high-grade graphite of the
type located within the adjacent Halbert’s
deposit. Halbert’s is among Australia’s
highest-grade graphite deposits, with a
reported JORC-compliant measured and
indicated resource of 1.47 Mt at a fixed
carbon content of 18.2%. Sixty-seven
percent (67%) of the recoverable graphite
from Halbert’s is reportedly coarse flake
(+150 micron), with 35% classified as
jumbo flake (+300 micron).
that hosts
the
The regional structure
the Halbert’s Shear
Halbert’s deposit,
Zone, extends through Renascor’s new
project area over approximately 25
kilometres strike extent. See Figure 11.
Limited previous drilling within
this
structure, on E74/518 in Munglinup Central
(to the immediate south of the Halbert’s
graphite deposit) intersected high-grade
graphite, including narrow graphite zones
containing up to 34.9% TGC. To the
immediate north of the Halbert’s deposit,
the Halbert’s Shear Zone extends for
approximately 20km to the north on newly
acquired E74/517 and E74/531.
A
recently
electromagnetic
completed
(VTEM) survey over this northern extension
has
prospective
conductive targets that Renascor considers
for Halbert’s-style
high priority
See Figure 11.
graphite deposits.
Renascor
additional
prospective graphite targets on the newly
acquired tenements over areas that have
not yet been subject to high quality airborne
EM. These areas, which include portions
over which ground sampling has yielded
high-grade graphite at surface, offer
additional potential
for further graphite
targets.
identified
identified
several
targets
has
Figure 10 (right). Munglinup project
tenements on regional total magnetic
intensity gradient image
15 | RENASCOR RESOURCES LIMITED Annual Report 2015
Review of operations
Munglinup (continued)
Nickel prospects
In addition to its graphite potential, Renascor considers the project area to offer similarly high-priority
nickel-sulphide prospects. The project tenements are situated in an untested area that is considered to be the
southern extension of the Lake Johnston Greenstone belt, the structural setting for Poseidon Nickel Ltd’s
Maggie Hays and Emily Ann nickel sulphide deposits, located approximately 50km to the north of E74/544.
See Figure 9. In 2013, Lithex Resources Ltd commissioned a review of the project’s nickel-sulphide potential
by Western Mining Services Pty Ltd. The Western Mining Services review concluded that, on a regional scale,
the Munglinup project tenements host significant strike length of nickel sulphide prospective ultramafic rocks
within an underexplored strike extension of the Lake Johnston Greenstone belt, a known nickel sulphide
mineralised province. Limited nickel exploration drilling undertaken by Lithex within E74/518 supports the
nickel sulphide prospectivity, with four (of four) holes drilled in a reconnaissance, graphite-targeted drill program
in 2013 intersecting widespread hydrothermal veining and alteration, with associated low level copper and PGE
anomalism. According to Western Mining Services, the anomalous mineralisation from the Lithex drilling is
consistent with the distal expression of a nickel sulphide deposit. See Figure 12. Accordingly, Renascor
considers that conductive zones within the identified Greenstone belt offer high potential for nickel-sulphides, in
addition to graphite.
Figure 11. Munglinup project, showing VTEM and SKYTEM late channel conductivity for central portion,
superimposed on a background of magnetics
Review of operations
Annual Report 2015 RENASCOR RESOURCES LIMITED | 16
Munglinup (continued)
Figure 12. Conceptual nickel sulphide mineralisation model (from Western Mining Services)
The Western Mining Service review also interpreted the likely continuation of the Halbert’s Shear to the north
and south of Halbert’s graphite deposit, and outlined the possibility that this represents the off-set continuation of
the Lake Johnston ultra mafics and nickel sulphide belt. From the recently completed EM survey completed
over this area, Renascor has identified several conductors that it considers high priority targets for nickel
sulphide mineralisation. In addition, the wider tenement area, including, E74/538, contains several known
occurrences of outcropping ultra mafic rocks and near-surface geochemical anomalies over areas that have not
been subject to detailed EM surveys. In particular, E74/538 contains an historical nickel occurrence at Young
River (see Figure 8), with extensive ultramafic outcrops. Renascor considers the coincidence of a major shear
zone and ultramafic host sequence as necessary pre-cursor for nickel sulphide prospectivity.
Next steps
Renascor’s upcoming exploration program for the Munglinup project is expected to include geologic mapping
and sampling (with further assaying and petrology) along the conductive sequence defined by the Halbert’s
Shear Zone. Subsequently, Renascor expects to commence initial drill-testing. Additional exploration work is
expected to focus on historical geochemical occurrences of graphite and nickel and will include additional
geologic mapping and sampling, and possible airborne or ground EM surveys
17 | RENASCOR RESOURCES LIMITED Annual Report 2015
Review of operations
Warrior
Location:
Gawler Craton (South Australia)
Tenements:
ELs 4570 and 4707 (100%, subject to 1% net smelter royalty)
Area:
Target:
310 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 13. 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 13. 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 core 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.
Renascor has 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 analysis using a PFN probe. Renascor
anticipates commencing drill-testing following indications of a recovery in the uranium price.
Review of operations
Annual Report 2015 RENASCOR RESOURCES LIMITED | 18
Carnding
Location:
Gawler Craton (South Australia)
Tenements:
EL 4707 (100%, subject to 1% net smelter royalty)
Area:
Target:
162km2
Gold
The Carnding project area consists of two tenement blocks located approximately 75km from the high-grade
Challenger gold mine in the north of South Australia. See Figure 14. The project area contains several areas
prospective for Challenger-style gold deposits.
Figure 14. Carnding project
The project area covers Archaean, Mulgathing Complex, rocks that also host the nearby Challenger gold mine.
The geology in this area is considered to be prospective for Archaean gold deposits, similar to Challenger, possible
Proterozoic IOCGs and sandstone-hosted uranium in the younger Mesozoic and Cainozoic sediments.
19 | RENASCOR RESOURCES LIMITED Annual Report 2015
Review of operations
Carnding (continued)
The project area contains numerous gold prospects that Renascor identified from historical surface sampling and
limited shallow drilling. Among these prospects is the Sunshine prospect, a gold-in-calcrete anomaly where
previous drilling interested 2m @ 6.66 g/T Au (from 60m). See Figure 15. The prospect is open to the north and
Renascor considers it prospective for high-grade Challenger-style gold deposits. Renascor’s next-stage
exploration program at Carnding is expected to include a follow-up field exploration program, including additional
calcrete sampling, after which Renascor plans to drill Sunshine and other identified targets.
Sunshine
prospect
Figure 15. Gold prospectivity within Carnding project area, showing calcrete defined gold anomalies and
drill hole locations and best gold intersections
Review of operations
Annual Report 2015 RENASCOR RESOURCES LIMITED | 20
Farina
Location:
Adelaide Fold Belt (South Australia)
Tenements:
ELs 4822 and 5586 (100%)
Area:
Target:
1,305 km2
Sedimentary and near-surface oxide copper
The Farina Project is made up a large, copper-prospective ground position 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 and near-surface oxide copper deposits.
Figure 16. 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 has focused on
historical copper occurrences at the Callanna prospect. Results included strongly anomalous gold values
(maximum 2.6 g/T Au) 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% Cu and 0.4 g/t Au 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.
21 | RENASCOR RESOURCES LIMITED Annual Report 2015
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 2015.
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), 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) and UIL energy Ltd (since 2014).
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 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 2015 RENASCOR RESOURCES LIMITED | 22
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
Manager
the Kalkaroo
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 the Governance Institute of Australia.
Directors’ Shareholdings
The following table sets out each director’s holdings 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
12,700,000
7,050,000
22,182,929
13,007,583
9,257,166
Listed Share Options Performance Rights
250,000
375,000
625,000
500,000
1,000,000
280,000
270,000
-
-
-
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 2015, 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
8
8
8
8
8
B
Held
8
8
8
8
8
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.
23 | RENASCOR RESOURCES LIMITED Annual Report 2015
Directors’ Report
Dividends - Renascor Resources Limited
There were no dividends declared or paid during the financial year (2014: Nil).
Review and results of operations
(a) Corporate and Financial
• For the year ended 30 June 2015, the loss for the Group after providing for income tax was $4,932,426
(2014: $1,513,910). This included a write down of capitalised exploration and evaluation expenditure of
$4,266,131 and relinquishment of nine tenements during the period and four tenements subsequent to the
year end.
• A Placement of 25,000,000 fully paid ordinary shares with 12,500,000 free attaching listed options
(exercisable at $0.03 and expiring on 30 September 2016) made to specialist investment fund Acorn
Capital was completed in June 2015 and raised $500,000 before costs.
• An accelerated non-renounceable entitlement offer was made to eligible shareholders (including directors
and executives) during June 2015 with the institutional component completed during June 2015 with the
issue of 31,500,000 fully paid ordinary shares with 15,750,000 free attaching listed options (exercisable at
$0.03 and expiring on 30 September 2016) and raising $630,000 before costs.
• The retail component of the entitlement offer was completed in July 2015 with the issue of 20,950,612 fully
paid ordinary shares and 10,475,310 free attaching listed options (exercisable at $0.03 and expiring on 30
September 2016) raising a further $419,012 before costs.
• At 30 June the company had cash and cash equivalents of $1,075,336.
(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.
• Exploration activities during the year focused on the drilling of high priority targets for large-scale
resources within Renascor’s 100%-owned Eastern Eyre project in the southern portion of South
Australia’s Olympic Dam Copper belt. Renascor’s drilling activities included programs at 1050 East and
Extension Tank. Renascor conducted geochemical and geophysical exploration activities aimed at
identifying copper deposits within the project area.
• The Company has maintained a strong exploration portfolio, and through application for mineral
exploration licence, the Company has added one adjacent tenure to its Farina project. To limit
non-essential expenditure, the Company has also relinquished nine tenements considered less
prospective. The new tenement, together with active reconnaissance exploration projects, provides 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 20 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
The retail component of the entitlement offer was completed in July 2015 with the issue of 20,950,612 fully paid
ordinary shares and 10,475,310 free attaching listed options (exercisable at $0.03 and expiring on 30 September
2016) on 9 July 2015, raising a further $419,012 before costs.
On 9 September 2015 the Company entered into a binding heads of agreement to secure the Munglinup project, a
highly prospective graphite-nickel sulphide tenement position in the Albany-Fraser Range province of Western
Australia. As consideration, subject to shareholder approval and any required regulatory approvals, Renascor will
issue 8,000,000 ordinary shares and 4,000,000 options (exercise price $0.03, expiry 31 September 2016) and pay
$100,000 in cash.
In the opinion of the directors, no other matter or circumstance has arisen since 30 June 2015 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 2015 RENASCOR RESOURCES LIMITED | 24
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 which can be
(www.renascor.com.au/company) provides further information on the role of this committee.
located on
the Company’s website
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. 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, market sentiment toward the sector and the global
economy, 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 five years since the Company
has been listed on the ASX:
Key performance indicators
2015
2014
2013
2012
2011
for
year
the
Profit/(Loss)
attributable to owners ($)
Basic earnings per share (cents)
Share price (cents) at year end
Increase/(decrease)
price (%)
Total KMP incentives as a
percentage of profit/(loss) for the
year (%)
in share
($4,932,426)
(3.5)
2.0
($1,513,910)
(1.3)
3.7
($528,989)
(0.5)
3.5
(297,219)
(0.3)
5.2
(1,049,980)
(1.2)
7.5
(45.9%)
5.7%
(32.7%)
(30.7%)
(62.5%)
(0.2%)
(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.
25 | RENASCOR RESOURCES LIMITED Annual Report 2015
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.
At the AGM held on 27 November 2014, shareholders approved the Non-Executive Directors Share Plan
(NEDSP) for non-executive directors to receive up to 50% of their compensation in shares in the Company.
Commencing on 1 October 2014 non-executive directors have received payment for 50% of their director fees
through the issue of NEDSP shares issued on 7 May 2015 as part of tranche#1 for the 6 month period 1 October
2014 to 31 March 2015 and the balance accrued held for the later issue of tranche#2 for the 6 month period 1
April to 30 September 2015
The following director fees have applied during the period:
Base fees
Chair
Other non-executive directors
From 1 July 2015
From 1 July 2014
$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.
Directors’ Report
Annual Report 2015 RENASCOR RESOURCES LIMITED | 26
Remuneration report – audited (continued)
(b) Principles used to determine the nature and amount of remuneration (continued)
Executive pay (continued)
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.
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 were
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 over three years
to period ending 30 June 2015.
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 years to period ending 30 June
2015.
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.
27 | RENASCOR RESOURCES LIMITED Annual Report 2015
Directors’ Report
Remuneration report – audited (continued)
(b) Principles used to determine the nature and amount of remuneration (continued)
Long-term incentives (continued)
For the CSP condition, the peer group of companies includes the following:
• Uranium Equities Limited
• Energia Minerals Limited
•
Toro Energy Limited
• UraniumSA Limited
• Vimy Resources Limited (previously known as 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 were issued for nil consideration and have variable vesting dates, subject to either
CSP condition or KPI condition (and the maximum number of shares which may 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 issued to each director and executive, the number
of performance rights subject to either the CSP condition or the KPI condition (and the maximum number of
Shares which may be issued where the relevant conditions are fully satisfied).
Performance Rights
Recipient
David Christensen
Year 1
30 June 2013
Year 2
30 June 2014
Year 3
30 June 2015
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
Total Performance Rights
666,667
666,667
666,666
2,000,000
(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 21 and 22 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 2015 RENASCOR RESOURCES LIMITED | 28
Remuneration report – audited (continued)
(c) Details of remuneration (continued)
Key management personnel of the Company and the Group
2015
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
NEDSP
shares 1 and
performance
rights
$
Total
$
37,500
21,530
20,625
79,655
-
-
-
-
-
-
-
-
-
3,470
-
3,470
22,500 1 60,000
15,000 1 40,000
12,375 1 33,000
49,875 1 133,000
290,703
278,590
17,498
-
12,118
11,614
18,783
18,783
3,302 342,404
3,184 312,171
214,077
-
8,476
18,751
1,390 242,694
783,370
17,498
32,208
56,317
7,876 897,269
863,025
17,498
32,208
59,787
57,751 1,030,269
1 At the AGM held on 27 November 2014, shareholders approved the Non-Executive Directors Share Plan (NEDSP) for
non-executive directors to receive up to 50% of their compensation in shares in the Company. Commencing on 1 October 2014
non-executive directors have received payment for 50% of their director fees. NEDSP shares were issued as part of tranche#1
for the 6 month period 1 October 2014 to 31 March 2015 with the remaining balance accrued, to be issued in tranche#2 for the 6
month period 1April to 30 September 2015.
2 During the reporting period, each of Mr Christensen’s, Mr McConachy’s and Mr Gaudio’s service agreement were amended to
reduce salary to $249,600 per annum for Mr Christensen, $239,200 for Mr McConachy and $184,000 for Mr Gaudio.
Key management personnel of the Company and the Group
2014
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
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
29 | RENASCOR RESOURCES LIMITED Annual Report 2015
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
2015
2014
2015
2014
At risk - LTI *
2015
2014
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
99.0%
99.0%
96.2%
96.0%
-%
-%
-%
-%
-%
-%
-%
-%
-%
-%
-%
-%
-%
-%
-%
-%
1.0%
1.0%
3.8%
4.0%
Other key management personnel of the Group
Angelo Gaudio
99.4%
96.2%
-%
-%
0.6%
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 2015 and 2014.
(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 2015, his per annum rate,
exclusive of superannuation, was payable at a rate of $249,600 per annum.
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 2015, his per annum
rate, exclusive of superannuation, was payable at a rate of $239,200 per annum.
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 2015, his per annum rate, exclusive of
superannuation, was payable at a rate of $184,000 per annum.
Directors’ Report
Annual Report 2015 RENASCOR RESOURCES LIMITED | 30
Remuneration report – audited (continued)
(f) Share-based compensation
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 1
30 Nov 2012
28 Feb 2014
30 Nov 2019
$Nil
Tranche 1a
28 Feb 2014
28 Feb 2014
30 Nov 2019
$Nil
54th percentile
54th percentile
Tranche 1b
28 Feb 2014
28 Feb 2014
30 Nov 2019
$Nil
80% of KPI
Tranche 2
30 Nov 2012
30 Jun 2014
30 Nov 2019
$Nil
Tranche 2a
28 Feb 2014
30 Jun 2014
30 Nov 2019
$Nil
# 54th percentile
# 54th percentile
20%
20%
80%
# 20%
# 20%
80%
80%
20%
# 80%
# 80%
Tranche 2b
28 Feb 2014
30 Jun 2014
30 Nov 2019
$Nil
* KPI to be assessed
* TBA
* TBA
Tranche 3
30 Nov 2012
30 Jun 2015
30 Nov 2019
$Nil
Tranche 3a
28 Feb 2014
30 Jun 2015
30 Nov 2019
$Nil
# Below 50th percentile
# Below 50th percentile
# Nil%
# Nil%
# 100%
# 100%
Tranche 3b
28 Feb 2014
30 Jun 2015
30 Nov 2019
$Nil
* KPI to be assessed
* TBA
* TBA
# 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 and 80% forfeited for tranche 2a. The preliminary review also shows that the
TSR Rank achieved for Year Ended 30 June 2015 is below the 50th percentile indicating that no CSP proportion of
performance shares will vest and 100% forfeited for tranche 3a.
*The KPI Performance rights conditions for Tranche 2b and 3b have not yet been assessed as at the date of this report
by the disinterested board members.
(g) Equity instruments held by key management personnel
Options holdings
Listed options are held directly, indirectly or beneficially by key management personnel* as at the date of this
report.
2015
Name
Directors of the Company
Balance at
the start of
the year
No.
Listed options
acquired
during the
reporting year
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.
David Christensen
Geoffrey McConachy
Andrew Martin
Stephen Bizzell
Chris Anderson
-
-
-
-
-
250,000
375,000
625,000
500,000
1,000,000
-
-
-
-
-
-
-
-
-
-
250,000
375,000
625,000
500,000
1,000,000
250,000
375,000
625,000
500,000
1,000,000
Other key management personnel of the Group
Angelo Gaudio
250,000
* 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.
250,000
250,000
-
-
-
# Listed options acquired during the period pursuant to the accelerated non-renounceable rights issue on the basis of one (1)
attaching free New Listed Option at $0.03 on or before 30 September 2016 for every two (2) New Shares subscribed for under this
Entitlement Offer.
31 | RENASCOR RESOURCES LIMITED Annual Report 2015
Directors’ Report
Remuneration report – audited (continued)
Performance Rights holdings
Details of performance rights held directly, indirectly or beneficially by key management personnel* as at the
date of this report are as follows:
Approved
to be
granted
during the
reporting
year as
compens-
-ation
No.
Exercised
during the
reporting
year
No.
Balance
at the
start of
the 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.#
Vested and
not
exercisable
at the end
of the
reporting
period
No.#
Vested at
the end of
the
reporting
period
No.#
2015
Name
658,000
Directors of the Company
David
Christensen
Geoffrey
McConachy
Andrew Martin
Stephen Bizzell
Chris Anderson
634,500
-
-
-
-
-
-
-
-
- (378,000)
280,000
140,000
98,000
42,000
- (364,500)
-
-
-
-
-
-
270,000
-
-
-
135,000
-
-
-
94,500
-
-
-
40,500
-
-
-
Other key management personnel of the Group
274,167
Angelo Gaudio
1,566,667
-
-
- (157,500)
- (900,000)
116,667
666,667
58,334
333,334
40,834
233,334
17,500
100,000
* 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.
# All vested and exercisable rights that vested during the year - subject to approval of disinterested board members of a
preliminary review of the CSP condition calculated.
Shareholdings
Details of equity instruments (other than options and rights) held directly, indirectly or beneficially by key
management personnel* as at the date of this report are as follows.
2015
Name
Directors of the Company
Ordinary shares
David Christensen
Geoffrey McConachy
Andrew Martin1
Stephen Bizzell
Chris Anderson
Ordinary
Shares
Balance at
the start of the
year
Issued during
reporting year
as
compensation
2
Received
during the
year on the
exercise of
Performance
Rights
12,200,000
6,300,000
20,500,000
11,358,190
6,900,000
-
-
432,929
649,393
357,166
Ordinary
Shares
Balance at
the end of the
year
12,700,000
7,050,000
22,182,929
13,007,583
9,257,166
Other
changes
during the
year #
500,000
750,000
1,250,000
1,000,000
2,000,000
500,000
6,715,000
-
-
-
-
-
-
Other key management personnel of the Group
Ordinary shares
Angelo Gaudio
6,215,000
-
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.
2 Shares issued as part of Non-executive directors Plan (NEDSP) in lieu of payment of 50% of director fees from 1st October
2014 and as approved by shareholders at Annual General Meeting held on 29 November 2014.
* 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.
# Ordinary shares acquired during the period pursuant to the accelerated non-renounceable rights issue on the basis of one (1)
New Share for every two (2) Shares held as part of the capital raising announced on 2 June 2015.
Directors’ Report
Annual Report 2015 RENASCOR RESOURCES LIMITED | 32
Remuneration report – audited (continued)
(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 $77,978 (2014: $87,402) from Euro which
has been capitalised as Exploration Expenditure during the financial year. An amount of $13,736 (2014: $9,944)
was owing to Euro at 30 June 2015.
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
$51,150 (2014: $103,234) from CGAA of which $51,150 (2014: $102,400) has been capitalised as Exploration
Expenditure during the financial year. An amount of $6,600 (2014: $24,513) was owing to CGAA at 30 June 2015.
Mr S. Bizzell is a director of Bizzell Capital Partners Pty Ltd (BCP). BCP has provided corporate advisory and
underwriting services to the company in relation to a capital raising. During the financial year the Company incurred
expenses of $15,000 (2014: $51,470) from BCP which was included as a cost of the capital raising during the
financial year. An amount of $Nil (2014: $Nil) was owing to BCP capital raising services at 30 June 2015.
Mr D. Christensen has an equity interest in Arion Legal. Arion Legal has provided legal services to the company.
During the financial year the Company incurred expenses of $9,690 (2014: $Nil) from Arion Legal of which $9,390
was included as a cost of the capital raising and $300 as a legal expense during the financial year. An amount of
$Nil (2014: $Nil) was owing to Arion Legal at 30 June 2015.
End of remuneration report - audited
33 | RENASCOR RESOURCES LIMITED Annual Report 2015
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
30 April 2012 (unlisted options)
9 June 2015 (listed options)
18 June 2015 (listed options)
9 July 2015 (listed options)
Expiry date
30 April 2016
30 September 2016
30 September 2016
30 September 2016
Date performance rights approved
30 November 2012*
28 February 2014*
Expiry date
30 November 2019
30 November 2019
Exercise
price of
shares
$0.054
$0.03
$0.03
$0.03
Number under option
750,000
12,500,000
15,750,000
10,475,310
39,475,310
Exercise
price of
shares
$Nil
$Nil
Number of
Performance
Rights held
550,000
116,667
666,667
* Performance rights granted as remuneration to the directors and the most highly remunerated officers
during the year. Details of performance rights granted to key management personnel are disclosed on
pages 30 to 31.
No ordinary shares of the Company were issued during the year ended 30 June 2015 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
2015
$
30 June
2014
$
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
6,929
6,929
16,493
16,493
Total fees for non-audit services
6,929
16,493
Directors’ Report
Annual Report 2015 RENASCOR RESOURCES LIMITED | 34
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.
Corporate Governance
The board of directors of the Company (“Board”) is responsible for the corporate governance of the
Company. 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 believes that
good corporate governance enhances investor confidence and adds value to stakeholders. The Board
continually monitors and reviews its policies, procedures and charters with a view to ensure its compliance
with the ASX Corporate Governance Council’s “Corporate Governance Principles and Recommendations,
3rd Edition” to the extent considered appropriate for the size of the Company and its scale of its operations.
The company’s Corporate Governance Statement
www.renascor.com.au/company.
is available on
the Company’s website
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 35.
This report is made in accordance with a resolution of directors.
David Christensen
Director
Adelaide
Date: 29 September 2015
35 | RENASCOR RESOURCES LIMITED Annual Report 2014
Auditor’s independent declaration
Auditor’s independence declaration
Shareholder information
Annual Report 2015 RENASCOR RESOURCES LIMITED | 36
Renascor Resources Limited
Shareholder information
30 June 2015
The shareholder information set out below was applicable as at 21 August 2015.
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
Unlisted
Options
Listed
Options
6
20
66
238
205
535
-
-
-
-
1
1
1
15
7
62
44
129
* Holdings of 10,000 securities or less is regarded as holding less than a marketable parcel of securities.
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
Ordinary shares
Name
Ordinary shares
Number held
Percentage of
issued shares
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
DAVID CHRISTENSEN *
CITICORP NOMINEES PTY LIMITED *
SLRI PTY LIMITED
WYTHENSHAWE PTY LTD
J P MORGAN NOMINEES AUSTRALIA LIMITED
ST LUCIA RESOURCES CAPITAL FUND PTY LIMITED
CASALAMADA PTY LTD
GEOFFREY WILLIAM MCCONACHY
NATIONAL NOMINEES LIMITED
BIZZELL NOMINEES PTY LTD
CANNC CONSULTING PTY LTD
MR ARNOLD GETZ & MRS RUTH GETZ *
BCP ALPHA INVESTMENTS LIMITED *
MR JOHN COLIN LOOSEMORE & MRS SUSAN MARJORY LOOSEMORE
MELBOURNE CAPITAL LIMITED
CLASM PTY LTD
CARLINGWOOD PTY LTD
ANDREW ROBERT JOSEPH MARTIN
R & C AUSTRALIA PTY LTD
MARTIN PLACE SECURITIES STAFF SUPERANNUATION FUND PTY LTD
12,700,000
12,232,832
11,000,000
10,500,000
9,571,704
9,000,000
8,300,000
7,050,000
6,812,464
6,758,333
6,700,000
4,850,000
4,047,524
3,700,000
3,000,000
3,000,000
3,000,000
2,182,929
1,887,000
1,750,000
5.89%
5.67%
5.10%
4.87%
4.44%
4.17%
3.85%
3.27%
3.16%
3.13%
3.10%
2.25%
1.88%
1.71%
1.39%
1.39%
1.39%
1.01%
0.87%
0.81%
TOTAL
128,042,786 59.34%
* Merged holdings
37 | RENASCOR RESOURCES LIMITED Annual Report 2015
Shareholder Information
Shareholder information (continued)
B. Equity security holders (continued)
Quoted equity securities (continued)
Listed options
Name
Listed Options
Number held
Percentage of
listed Options
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
CITICORP NOMINEES PTY LIMITED
WYTHENSHAWE PTY LTD
J P MORGAN NOMINEES AUSTRALIA LIMITED
NATIONAL NOMINEES LIMITED
MR JOHN COLIN LOOSEMORE & MRS SUSAN MARJORY LOOSEMORE
MELBOURNE CAPITAL LIMITED
M & K KORKIDAS PTY LTD
MUNGALA INVESTMENTS PTY LIMITED
SANBERG PTY LTD
CASALAMADA PTY LTD
MARTIN PLACE SECURITIES STAFF SUPERANNUATION FUND PTY LTD
ALCARDO INVESTMENTS LIMITED
MR NEIL FRANCIS STUART
ANDREW ROBERT JOSEPH MARTIN
LOCANTRO SPECULATIVE INVESTMENTS PTY LTD
RAVEN INVESTMENT HOLDINGS PTY LTD
UNRANDOM PTY LTD
CLASM PTY LTD
BIZZELL NOMINEES PTY LTD
GEOFFREY WILLIAM MCCONACHY
5,201,416
5,000,000
4,767,352
2,531,232
2,000,000
1,500,000
1,475,510
1,000,000
1,000,000
1,000,000
875,000
700,000
625,000
625,000
500,000
500,000
500,000
500,000
500,000
375,000
13.43%
12.91%
12.31%
6.54%
5.16%
3.87%
3.81%
2.58%
2.58%
2.58%
2.26%
1.81%
1.61%
1.61%
1.29%
1.29%
1.29%
1.29%
1.29%
0.97%
TOTAL
31,175,510
80.50%
Unquoted equity securities
Performance Rights
Share options
# Number of Performance Rights held.
* Number of unissued ordinary shares under the options.
Number
on
issue/granted
Number
of holders
666,667 #
750,000 *
3
1
There is one holder for the unlisted 750,000 options (expiring 30 April 2016) 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
25,000,000
Acorn Capital Limited *
22,182,929
Andrew Martin + related interests
Stephen Bizzell + related interests
13,007,583
David Christensen + related interests 12,700,000
TOTAL
72,890,512
11.59%
10.28%
6.03%
5.89%
33.78%
* In its capacity as manager of various holdings.
Shareholder information
Annual Report 2015 RENASCOR RESOURCES LIMITED | 38
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 21 August 2015.
39 | RENASCOR RESOURCES LIMITED Annual Report 2015
Shareholder Information
Shareholder information (continued)
F.
Interests in Tenements
The Group held the following interests in tenements as at 21 August 2015:
Name
% Interest
Application
Lodged
Grant Date
Expiry Date
Tenement
South Australia
EL 4721
EL 5012
EL 5236
EL 5400
EL 5401
EL 4675
EL 4836
EL 4570
EL 4707
EL 4822
EL 5586
Iron Baron
Cultana
Old Wartaka
Lincoln Gap
Mt. Whyalla
Gairdner
Lake Harris
Warrior
Carnding
Willouran
Callana Area
EL 5585 (prev 4394)
Cutana
EL 5584 (prev. 4399)
Outalpa
EL 5228
EL 5322
EL 5323 #
EL 5324 #
EL 5325 #
EL 5326 #
Wompinie
Lake Callabonna
Lake Yannerpi #
Lake Callabonna Sth #
Callabonna #
Coonee Creek #
# Surrender Form 14 lodged on 19th August 2015
100
100
100
-
-
-
0 (Option to Acquire)
0 (Option to Acquire)
-
-
100
100
100
100
100
100
100
100
100
100
100 #
100 #
100 #
100 #
-
-
-
-
-
-
-
-
-
-
-
-
-
-
04-Apr-11
03-Apr-16
13-Sep-12
12-Sep-17
08-May-13
07-May-16
30-Apr-14
30-Apr-16
30-Apr-14
30-Apr-16
22-Feb-11
21-Feb-16
15-Feb-12
14-Feb-16
21-Sep-10
28-Mar-11
20-Sep-15
4
27-Mar-16
17-Jan-12
16-Jan-16
17-Jan-12
16-Jan-16
10-Dec-09
09-Dec-16
10-Dec-09
09-Dec-16
01-May-13
30-Apr-17
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
Northern Territory
ELA27517
ELA27518
NirripiNth
NirripiWest
0 (Application)
0 (Application)
29-Jul-09
29-Jul-09
-
-
-
-
Consolidated statement of financial position
Annual Report 2015 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 2015
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
2015
$
30 June
2014
$
26,317
60,388
41,556
(121,304)
(7,296)
(500,131)
300
(30,225)
(4,266,131)
(75,512)
(4,932,426)
158,627
(169,424)
(8,808)
(584,674)
(21,879)
(26,941)
(827,101)
(94,098)
(1,513,910)
-
(4,932,426)
-
(1,513,910)
-
-
Total comprehensive income for the year
(4,932,426)
(1,513,910))
Loss is attributable to:
Owners of Renascor Resources Limited
Total comprehensive income for the year is attributable to:
Owners of Renascor Resources Limited
(4,932,426)
(1,513,910)
(4,932,426)
(1,513,910)
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
(3.5)
(3.5)
(1.3)
(1.3)
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 2015
Consolidated statement of profit or loss
and other comprehensive income
Renascor Resources Limited
Consolidated statement of financial position
As at 30 June 2015
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
2015
$
30 June
2014
$
Notes
8
9
10
11
13
14
15
1,075,336
224,803
23,355
1,323,494
1,424,978
161,210
28,419
1,614,607
9,596
3,534,046
3,543,642
13,459
6,942,371
6,955,830
4,867,136
8,570,437
242,337
154,979
397,316
198,823
108,799
307,622
57,630
57,630
25,421
25,421
454,946
333,043
4,412,190
8,237,394
17
18(a)
18(b)
11,903,316
1,026,312
(8,517,438)
4,412,190
10,803,970
1,018,436
(3,585,012)
8,237,394
The above consolidated statement of financial position should be read in conjunction with the accompanying notes.
Consolidated statement of changes in equity
Annual Report 2015 RENASCOR RESOURCES LIMITED | 42
Renascor Resources Limited
Consolidated statement of changes in equity
For the year ended 30 June 2015
Consolidated
Notes
Contributed
equity
$
Share-based
Payments
Reserve
$
Accumulated
losses
$
Total
equity
$
Balance at 1 July 2013
9,798,800
982,097 (2,071,102) 8,709,795
Loss for the year
Total comprehensive income
Transactions with owners in their capacity as
owners:
Contributions of equity net of transaction costs
Share-based payments
- (1,513,910) (1,513,910)
- (1,513,910) (1,513,910)
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
Balance at 1 July 2014
Loss for the year
Total comprehensive income
10,803,970 1,018,436 (3,585,012) 8,237,394
- (4,932,426) (4,932,426)
- (4,932,426) (4,932,426)
Transactions with owners in their capacity as
owners:
Contributions of equity, net of transaction costs
Amount recognised during the current period for
Share-based payments
17(b) 1,099,346
-
- 1,099,346
18(a)
1,099,346
7,876
7,876
7,876
-
- 1,107,222
Balance at 30 June 2015
11,903,316 1,026,312 (8,517,438) 4,412,190
The above consolidated statement of changes in equity should be read in conjunction with the accompanying notes.
43 | RENASCOR RESOURCES LIMITED Annual Report 2015
Consolidated statement of cash flows
Renascor Resources Limited
Consolidated statement of cash flows
For the year ended 30 June 2015
Consolidated
30 June
2015
$
30 June
2014
$
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 (Deposits received for sale of tenements)
Net cash inflow (outflow) from operating activities
94,433 127,874
(697,114) (864,879)
26,077 68,409
5b 118,627 161,818
15,000 40,000
27 (442,977) (466,778)
Cash flows from investing activities
Payments for property, plant and equipment
Proceeds from sale of tenement
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 (3,433) -
62,500 -
(1,047,063) (1,771,521)
(987,996) (1,771,521)
-
-
-
-
(48,669)
(74,830)
1,130,000
1,080,000
1,081,331 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
(349,642) (1,233,128)
1,424,978 2,658,106
1,075,336 1,424,978
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 2015 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
63
64
65
66
66
66
67
67
68
69
73
74
45 | RENASCOR RESOURCES LIMITED Annual Report 2015
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 $3,534,046 (30 June 2014:
$6,942,371).
The Group has incurred a loss after tax for the year of $4,932,426 (2014: $1,513,910) and operations were
funded by a net cash outflow of $349,642 (2014: $1,233,128). At 30 June 2015, the Group had net current assets
of $926,178 (30 June 2014: $1,306,985).
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 2015 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.
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 2015 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. The following specific recognition criteria
must also be met before revenue is recognised:
Interest Revenue
Interest income is recognised on a time proportion basis using the effective interest method.
Government Grants
Grants from the government are recognised at their fair value where there is reasonable assurance that the grant
will be received and the Group will comply with all the attached conditions. Government grants relating to costs
are deferred and recognised in profit or loss over the period necessary to match them with the costs that they are
intended to compensate. Government grants relating to exploration and evaluation expenditure are offset
against exploration and evaluation assets.
(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.
47 | RENASCOR RESOURCES LIMITED Annual Report 2015
Notes to the consolidated financial statements
1 Summary of significant accounting policies (continued)
(g) Income tax (continued)
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.
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.
Notes to the consolidated financial statements
Annual Report 2015 RENASCOR RESOURCES LIMITED | 48
1 Summary of significant accounting policies (continued)
(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.
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
-
The assets' residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each
reporting period.
3 – 10 years
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 2015
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
corporate 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 2015 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, less any impairment, in the financial statements of the
Parent Entity.
(t) Change in Accounting Policy
The group previously accounted for refundable R&D tax incentives as other income but has determined that
these incentives are more akin to government grants because they are not conditional upon earning taxable
income. The group has therefore made a voluntary change in accounting policy during the reporting period.
Refundable tax incentives are now accounted for as government grants under AASB 120 Accounting for
Government Grants and Disclosure of Government Assistance. This voluntary change in accounting policy has
been applied prospectively in the current period and is not considered to have a material impact on the financial
statements.
51 | RENASCOR RESOURCES LIMITED Annual Report 2015
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
2015
$
30 June
2014
$
1,075,336
224,803
1,300,139
1,424,978
161,210
1,586,188
242,337
242,337
198,823
198,823
(a)
Market risk
(i) Cash flow and fair value interest rate risk
As at 30 June 2015 and 30 June 2014, 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 2015
30 June 2014
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
3.08 %
- %
- %
1,075,336
224,803
(242,337)
1,057,802
3.46 %
- %
- %
1,424,978
161,210
(198,823)
1,387,365
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 2015
Financial assets
Interest rate risk
- 1.0%
+ 1.0%
Carrying
amount
$
Profit
$
Other equity
$
Profit
$
Other equity
$
Cash and cash equivalents
1,075,336
(10,753)
Trade and other receivables
224,803
Financial liabilities
Trade and other payables
(242,337)
-
-
Total increase/ (decrease)
1,057,802
(10,753)
-
-
-
-
10,753
-
-
10,753
-
-
-
-
Notes to the consolidated financial statements Annual Report 2015 RENASCOR RESOURCES LIMITED | 52
2 Financial risk management (continued)
(a)
Market risk (continued)
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)
- 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
(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
2015
$
2014
$
224,803
224,803
161,210
161,210
1,075,336
1,424,978
1,075,336
1,424,978
53 | RENASCOR RESOURCES LIMITED Annual Report 2015
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 deposits at call of
$1,075,336 (2014: $1,424,978) 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 2015
$
$
$
$
$
Total
contract-
-ual cash
flows
$
Carrying
Amount
(assets)/
liabilities
$
Trade payables
Total
(242,337)
(242,337)
-
-
-
-
-
-
- (242,337) (242,337)
- (242,337) (242,337)
Group - At 30 June 2014
Less than
6 months
6 - 12
months
Less than
1 year
Between
1 and 5
years
Over 5
years
$
$
$
$
$
Total
contract-
-ual cash
flows
$
Carrying
Amount
(assets)/
liabilities
$
Trade payables
Total
(198,823)
(198,823)
-
-
-
-
-
-
- (198,823) (198,823)
- (198,823) (198,823)
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 2015 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 2015
Notes to the consolidated financial statements
5 Revenue and Other Income
(a) Revenue
Interest income
(b) Other Income
Consolidated
30 June
2015
$
30 June
2014
$
26,317
60,388
Research and development tax concession #
Department of State Development PACE funding grant
Profit on sale of tenement
-
118,627
-
40,000
41,556 -
41,556 158,627
# Note: Refundable tax incentives (Research and development tax concession) are now
accounted for as government grants under AASB 120 Accounting for Government Grants and
Disclosure of Government Assistance and offset against capitalised exploration and evaluation
expenditure. This voluntary change in accounting policy has been applied prospectively in the
current period and is not considered to have a material impact on the financial statements.
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
Consolidated
30 June
2015
$
30 June
2014
$
768
6,528
7,296
768
8,040
8,808
-
4,266,131
4,266,131
-
827,101
827,101
-
-
-
-
-
-
427,555 485,373
36,339
62,962
584,674
64,700
500,131
7,876
Minimum office lease payments
30,225
26,941
Notes to the consolidated financial statements
Annual Report 2015 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
2015
$
30 June
2014
$
-
-
-
-
-
-
(849,055)
849,055
-
213,555
(213,555)
-
(b) Numerical reconciliation of income tax expense to prima facie
tax payable
Profit/(Loss) from continuing operations before income tax expense
(4,932,426)
(1,513,910)
Tax at the Australian tax rate of 30% (2014: 30%)
Tax effect of amounts which are not deductible (taxable) in calculating
Taxable income:
Non-taxable income:
- Debt forgiveness
- Research and development tax concession
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
(1,479,728)
(454,173)
-
(57,283)
-
(35,588)
12
2,363
-
1,534,636
-
1,479,728
285
10,902
-
478,575
-
454,173
-
-
Unused tax losses for which no deferred tax asset has been recognised
Potential tax benefit @ 30%
7,944,562
2,383,369
3,167,519
950,256
(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 2015
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
2015
$
30 June
2014
$
1,075,336 1,424,978
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
2015
$
30 June
2014
$
16,998
190,942
16,863
224,803
41,229
118,627
1,354
161,210
(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 2015 RENASCOR RESOURCES LIMITED | 58
10 Non-current assets - Property, plant and equipment
Consolidated
Gross carrying amount
Balance at 30 June 2013
Additions
Depreciation charge
Balance at 30 June 2014
Additions
Depreciation charge
Balance at 30 June 2015
Computer Equipment
Cost
Accumulated depreciation
Net book amount
Plant and Equipment
Cost
Accumulated depreciation
Net book amount
Computer
equipment
$
Office furniture
and equipment
$
Total
$
18,889
-
(8,040)
10,849
3,433
(6,527)
7,755
3,378
-
(768)
2,610
-
(769)
1,841
22,267
-
(8,808)
13,459
3,433
(7,296)
9,596
Consolidated
30 June
2015
$
34,982
(27,227)
7,755
30 June
2014
$
31,549
(20,700)
10,849
4,444
(2,603)
1,841
4,444
(1,834)
2,610
11 Non-current assets - Exploration and evaluation expenditure
Exploration and evaluation
Opening balance
Acquisitions through business combinations
Impairments
R&D tax refund offset against capitalised exploration and evaluation #
Tenement sale component of exploration and evaluation
Expenditure incurred
Closing balance
Consolidated
30 June
2015
$
6,942,371
-
(4,266,131)
(190,942)
(20,944)
1,069,692
3,534,046
30 June
2014
$
6,162,500
-
(827,101)
-
-
1,606,972
6,942,371
# Note: Refundable tax incentives (Research and development tax concession) are now accounted for as government grants
under AASB 120 Accounting for Government Grants and Disclosure of Government Assistance and offset against capitalised
exploration and evaluation expenditure. This voluntary change in accounting policy has been applied prospectively in the
current period and is not considered to have a material impact on the financial statements.
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 $590,450 of internal personnel costs (2014: $593,758) and management fees for joint venture
tenements of $1,678 (2014: $3,256) 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 2015
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
2015
$
30 June
2014
$
6,917
63,783
58,917
9,273
40,266
103,434
620,345
929,932
1,626,014
1,778,987
Set-off of deferred tax liabilities pursuant to set-off provisions
(note 16)
Net deferred tax assets
(929,932)
-
(1,778,987)
-
Movements:
Opening balance at 1 July
Credited to profit or loss
Closing balance at 30 June
1,778,987
(849,055)
929,932
1,547,432
231,555
1,778,987
13 Current liabilities - Trade and other payables
Consolidated
30 June
2015
$
30 June
2014
$
Trade payables
Sundry creditor and accrued expenses
Other payables
42,759
199,578
88,709
110,114
- -
198,823
242,337
Notes to the consolidated financial statements
Annual Report 2015 RENASCOR RESOURCES LIMITED | 60
14 Current liabilities – Provisions
Consolidated
30 June
2015
$
30 June
2014
$
Employee benefits
154,979
108,799
Provision for employee benefits is made for annual leave owed as at 30 June 2015
15 Non-current liabilities – Provisions
Consolidated
30 June
2015
$
30 June
2014
$
Employee benefits
57,630
25,421
Provision for employee benefits is made for long service leave as at 30 June 2015
16 Non-current liabilities - Deferred tax liabilities
The balance comprises temporary differences attributable to:
Assessable temporary differences
-
-
Interest receivable
Exploration and evaluation expenditure
Total deferred tax liabilities
Consolidated
30 June
2015
$
30 June
2014
$
221
929,711
929,932
149
1,778,838
1,778,987
Set-off of deferred tax liabilities pursuant to set-off provisions (note 12)
Net deferred tax liabilities
(929,932)
-
(1,778,987)
-
Movements:
Opening balance at 1 July
Charged to profit or loss
Closing balance at 30 June
1,778,987
(849,055)
929,932
1,547,432
213,555
1,778,987
61 | RENASCOR RESOURCES LIMITED Annual Report 2015
Notes to the consolidated financial statements
17 Contributed equity
(a) Share capital
Ordinary shares
Fully paid
30 June
2015
Shares
30 June
2014
Shares
30 June
2015
$
30 June
2014
$
(b),(c)
194,839,488 134,600,000 11,903,316 10,803,970
(b) Movements in ordinary share capital:
Date
Details
Notes
1 July 2013
Opening balance
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 issues, net of tax
Number of
shares
114,800,000
Issue price
$
9,798,800
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
$0.05
160,000
92,500
1,080,000
(74,830)
10,803,970
30 June 2014
Balance
136,400,000
3 Sep 2014
7 May 2015
9 June 2015
18 June 2015
Ordinary shares issued to Currie
Resources Pty Ltd – consideration
pursuant to Currie Agreement.
Ordinary shares issued to
non-executive directors pursuant to
Non-Executive Directors Share Plan.
Placement to Acorn Capital -
Ordinary shares issued.
Institutional component of
accelerated non-renounceable
entitlement offer (ANREO) – Ordinary
shares issued.
30 June 2015
30 June 2015
Less: Transaction costs arising on
share issues, net of tax
Balance
500,000
$0.044
22,000
1,439,488
$0.023
33,250
25,000,000
$0.02
500,000
31,500,000
58,439,488
$0.02
630,000
1,185,250
194,839,488
(85,904)
11,903,316
(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 unlisted 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 2015 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:
Amount recognised during the period for Performance Rights/Share
Options previously issued to directors and executives (refer note
29(a))
(b) Accumulated losses
Movements in accumulated losses were as follows:
Balance 1 July
Net loss for the year
Balance 30 June
Consolidated
30 June
2015
$
30 June
2014
$
1,026,312
1,018,436
1,018,436
7,876
1,026,312
982,097
36,339
1,018,436
7,876
7,876
36,339
36,339
Consolidated
30 June
2015
$
30 June
2014
$
3,585,012
4,932,426
8,517,438
2,071,102
1,513,910
3,585,012
(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 2015 period.
Parent Entity
30 June
2015
$
30 June
2014
$
Franking credits available for subsequent financial years based on a
tax rate of 30% (2014: 30%)
-
-
63 | RENASCOR RESOURCES LIMITED Annual Report 2015
Notes to the consolidated financial statements
20 Key management personnel disclosures
(a) Key management personnel compensation
Consolidated
30 June
2015
$
30 June
2014
$
880,522
32,208
59,788
57,751
1,030,269
972,793
16,632
56,712
36,339
1,082,476
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 costs of $77,978 (2014: $87,402) from Euro
which has been capitalised as Exploration Expenditure during the financial year. An amount of $13,736 (2014:
$9,944) was owing to Euro at 30 June 2015.
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 costs of
$51,150 (2014: $103,234) from CGAA of which $51,150 (2014: $102,400) has been capitalised as Exploration
Expenditure during the financial year. An amount of $6,600 (2014: $24,513) 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 and
underwriting services to the company in relation to its capital raising. During the financial year the Company
incurred costs of $15,000 (2014: $51,470) from BCP which was included as a cost of the capital raising during
the financial year. An amount of $Nil (2014: $11,000) was owing to BCP at 30 June 2015.
Mr D. Christensen has an equity interest in Arion Legal. Arion Legal has provided legal services to the
company. During the financial year the Company incurred costs of $9,690 (2014: $Nil) from Arion Legal of
which $9,390 was included as a cost of the capital raising and $300 as a legal expense during the financial year.
An amount of $Nil (2014: $Nil) was owing to Arion Legal at 30 June 2015.
.
Notes to the consolidated financial statements
Annual Report 2015 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
2015
$
30 June
2014
$
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
30,300
30,300
32,800
32,800
(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
6,929
16,493
Total auditors' remuneration
37,229
49,293
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 2015
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
2015
$
30 June
2014
$
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
1,863,988
926,958
-
2,790,946
4,081,713
574,179
-
4,655,892
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
2015
$
30 June
2014
$
-
-
-
-
-
-
-
-
The office lease expired on 30 November 2013. The company currently occupies the office with rent payable
monthly in advance on a month to month basis.
Notes to the consolidated financial statements
Annual Report 2015 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
2015
%
2014
%
Kurilpa Uranium Pty Ltd
Australia
Ordinary
Astra Resources Pty Ltd
Australia
Ordinary
100
100
100
100
25 Joint Operations
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). The Company had the ability
to earn a 75% interest if it spent $3,000,000 toward exploration expenditure on EL 5307 (previously EL 3978)
over 4 years.
During the year ended 30 June 2015 the Company elected to exit the joint venture and relinquished its option to
earn 75% interest in EL 5307 (Pirie Basin project) from Hiltaba Gold Pty Ltd.
67 | RENASCOR RESOURCES LIMITED Annual Report 2015
Notes to the consolidated financial statements
26 Events occurring after the reporting period
On 9 July 2015, 20,950,612 ordinary fully paid shares and were issued in relation to the retail component of the
entitlement offer which was completed subsequent to the year end and raising a further $419,012 before costs.
On 9 July 2015, 38,725,310 listed options (exercisable @ $0.03 and expiring on 30 September 2016) were
issued on the basis of one free attaching option for every two new shares acquired as part of the placement
and entitlement offer announced on 2 June 2015.
On 9 September 2015 the Company entered into a binding heads of agreement to secure the Munglinup
project, a highly prospective graphite-nickel sulphide tenement position in the Albany-Fraser Range province
of Western Australia. As consideration, subject to shareholder approval and any required regulatory
approvals, Renascor will issue 8,000,000 ordinary shares and 4,000,000 options (exercise price $0.03, expiry
31 September 2016) and pay $100,000 in cash.
No other matter or circumstance has arisen since 30 June 2015 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
Profit on Sale of tenement
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:
(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
Consolidated
30 June
2015
$
30 June
2014
$
(4,932,426) (1,513,910)
7,296
8,808
(41,556) -
4,266,131
827,101
41,126
36,339
138,258
5,064
(5,260)
78,389
(442,977)
(55,570)
6,464
54,123
58,727
(466,778)
Non-cash financing and investing activities
Shares issued to Currie Resources for no cash consideration in respect of
Exploration and Evaluation activities
(22,000)
Shares issued to non-executive directors in lieu of 50% of cash director
fees from 1 October 2014 to 31 March 2015 pursuant to NEDSP
(33,250)
-
-
Performance rights issued to executive directors for no cash consideration
(7,876)
(36,339)
Notes to the consolidated financial statements
Annual Report 2015 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
2015
Cents
30 June
2014
Cents
(3.5)
(3.5)
(3.5)
(3.5)
(1.3)
(1.3)
(1.3)
(1.3)
(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
2015
$
30 June
2014
$
(4,932,426)
(4,932,426)
(1,513,910)
(1,513,910)
Consolidated
30 June
2015
Number
30 June
2014
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
139,658,005
116,638,137
-
-
139,658,005
116,638,137
* 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 2015
Notes to the consolidated financial statements
29 Share-based payments
(a) Share based payments to directors, executives and consultants
At the AGM held on 27 November 2014, shareholders approved the Non-Executive Directors Share Plan (NEDSP)
for non-executive directors to receive up to 50% of their compensation in shares in the Company. During the year
ended 30 June 2015 the Company has issued 1,439,488 ordinary fully paid shares to the non-executive directors
pursuant to the NEDSP for the six month period from 1 October 2014 to 31 March 2015.
Set out below are summaries of options granted to directors, senior management and consultants:
OPTIONS
Grant Date
Expiry date
Consolidated – 2015
30 Aug 2010
27 Oct 2010
Total
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
1,000,000
700,000
1,700,000
$0.24
-
-
(1,000,000)
(700,000)
-
-
- - (1,700,000)
$-
$0.24
$-
-
-
-
$-
-
-
-
$-
Consolidated – 2014
30 Aug 2010
30 Aug 2010
27 Oct 2010
Total
15 Dec 2013
31 Dec 2014
31 Dec 2014
-
$0.24 8,100,000 -
-
1,000,000
$0.24
700,000
-
$0.24
9,800,000 - -
-
-
Weighted average exercise price
$0.24
$-
$-
(8,100,000) -
1,000,000
-
-
700,000
(8,100,000) 1,700,000
$0.24
$-
-
1,000,000
700,000
1,700,000
$0.24
1,700,000 share options expired on 31 December 2014 and no contractual life of the above share options remains
at the end of the period. (2014: 0.50 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 (2014: $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 (2014: $Nil). 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:
PERFORMANCE RIGHTS
Grant Date
Expiry date
Consolidated – 2015
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
Vested and
exercisable
at end of the
year
28 Feb 2014
28 Feb 2021
$Nil 274,167 -
-
(157,500)
116,667
40,834
30 Nov 2012
30 Nov 2019
$Nil
1,292,500
-
-
(742,500)
550,000
192,500
Total
1,566,667 - - (900,000) 666,667
233,334
Consolidated – 2014
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)
40,834
192,500
233,334
The weighted average remaining contractual life of the above performance rights outstanding at the end of the
period was 4.90 years (2014: 5.90 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 $7,876 (2014: $36,339) 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 2015 RENASCOR RESOURCES LIMITED | 70
29 Share-based payments (continued)
(b) Exploration and evaluation share based payments
During the year ended 30 June 2015 the Company issued 500,000 ordinary fully paid shares to nominees of Currie
Resources Pty Ltd (Currie) as part consideration for exploration and access rights pursuant to an agreement
between the Company and Currie that also grants the Company an option to acquire 100% of two exploration
licences, EL 5400 and EL 5401 tenements in the Gawler Craton, South Australia adjacent to the Company’s Eastern
Eyre project.
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.
The amount of the equity settled share-based payment recognised in the current period in respect of the ordinary
shares issued is $22,000 (2014: $Nil). 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
Consolidated – 2015
20 Dec 2010
30 Apr 2012
17 Feb 2015
30 Apr 2016
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
$0.24
$0.054
750,000
750,000
-
-
-
-
(750,000)
-
-
-
750,000
750,000
Total
1,500,000
Weighted average exercise price
$0.147
-
$-
-
$-
(750,000)
750,000
750,000
$0.24
$0.054
$0.054
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
The weighted average remaining contractual life of the above share options outstanding at the end of the period was
0.84 years (2014: 1.24 years).
There was no amount of the equity settled share-based payment recognised in the current period in respect of the
options granted above (2014: $Nil). 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. All of these options expired on 31 December 2014.
71 | RENASCOR RESOURCES LIMITED Annual Report 2015
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
Consolidated – 2015
30 Aug 2010
15 Dec 2010
31 Dec 2014
31 Dec 2014
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
$0.24
$0.24
1,000,000
2,000,000
-
-
-
-
(1,000,000)
(2,000,000)
-
-
-
-
Total
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
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
All of these options expired on 31 December 2014 with no remaining contractual life of the above share
options outstanding at the end of the period. (2014: 0.5 years).
There was no amount of the equity settled share-based payment recognised in the current period in respect
of the options granted above. (2014: $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.
Notes to the consolidated financial statements
Annual Report 2015 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 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, 3,750,000 options expired and 1,333,333 performance rights
lapsed.
73 | RENASCOR RESOURCES LIMITED Annual Report 2015
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
2015
$
30 June
2014
$
1,323,394
1,614,357
3,792,527
5,115,921
7,201,170
8,815,527
397,316
57,630
454,946
307,622
25,422
333,044
4,660,975
8,482,483
11,903,316
1,026,312
(8,268,653)
4,660,975
10,803,970
1,018,436
(3,339,923)
8,482,483
(4,928,730)
(1,289,924)
(4,928,730)
(1,289,924)
(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 other contingent liabilities
as at 30 June 2015.
(c) Contractual commitments for the acquisition of property, plant or equipment
As at 30 June 2015, the Parent Entity had no contractual commitments for the acquisition of property, plant or
equipment.
(d) Guarantees
As at 30 June 2015, the Parent Entity had not guaranteed the debts of any subsidiary Company.
Notes to the consolidated financial statements
Annual Report 2015 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 2012-3 Amendments to Australian Accounting Standards - Offsetting Financial Assets and
Financial Liabilities
The consolidated entity has applied AASB 2012-3 from 1 July 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.
AASB 2013-3 Amendments to AASB 136 - Recoverable Amount Disclosures for Non-Financial Assets
The consolidated entity has applied AASB 2013-3 from 1 July 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.
AASB 2014-1 Amendments to Australian Accounting Standards (Parts A to C)
The consolidated entity has applied Parts A to C of AASB 2014-1 from 1 July 2014. These amendments
affect the following standards: AASB 2 'Share-based Payment': clarifies the definition of 'vesting
condition' by separately defining a 'performance condition' and a 'service condition' and amends the
definition of 'market condition'; AASB 3 'Business Combinations': clarifies that contingent consideration
in a business combination is subsequently measured at fair value with changes in fair value recognised
in profit or loss irrespective of whether the contingent consideration is within the scope of AASB 9; AASB
8 'Operating Segments': amended to require disclosures of judgements made in applying the
aggregation criteria and clarifies that a reconciliation of the total reportable segment assets to the entity's
assets is required only if segment assets are reported regularly to the chief operating decision maker;
AASB 13 'Fair Value Measurement': clarifies that the portfolio exemption applies to the valuation of
contracts within the scope of AASB 9 and AASB 139; AASB 116 'Property, Plant and Equipment' and
AASB 138 'Intangible Assets': clarifies that on revaluation, restatement of accumulated depreciation will
not necessarily be in the same proportion to the change in the gross carrying value of the asset; AASB
124 'Related Party Disclosures': extends the definition of 'related party' to include a management entity
that provides KMP services to the entity or its parent and requires disclosure of the fees paid to the
management entity; AASB 140 'Investment Property': clarifies that the acquisition of an investment
property may constitute a business combination.
75 | RENASCOR RESOURCES LIMITED Annual Report 2015
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
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 2015. 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
This standard is applicable to annual reporting periods beginning on or after 1 January 2018. The
standard replaces all previous versions of AASB 9 and completes the project to replace IAS 39
(AASB 139) 'Financial Instruments: Recognition and Measurement'. AASB 9 introduces new
classification and measurement models for financial assets. A financial asset shall be measured at
amortised cost, if it is held within a business model whose objective is to hold assets in order to
collect contractual cash flows, which arise on specified dates and solely principal and interest. All
other financial instrument assets are to be classified and measured at fair value through profit or loss
unless the entity makes an irrevocable election on initial recognition to present gains and losses on
equity instruments (that are not held-for-trading) in other comprehensive income ('OCI'). For financial
liabilities, the standard requires the portion of the change in fair value that relates to the entity's own
credit risk to be presented in OCI (unless it would create an accounting mismatch). New simpler
hedge accounting requirements are intended to more closely align the accounting treatment with the
risk management activities of the entity. New impairment requirements will use an 'expected credit
loss' ('ECL') model to recognise an allowance. Impairment will be measured under a 12-month ECL
method unless the credit risk on a financial instrument has increased significantly since initial
recognition in which case the lifetime ECL method is adopted. The standard introduces additional
new disclosures. The consolidated entity will adopt this standard from 1 July 2018 but the impact of
its adoption is yet to be assessed by the consolidated entity
AASB 15 Revenue from Contracts with Customers
This standard is applicable to annual reporting periods beginning on or after 1 January 2017. The
standard provides a single standard for revenue recognition. The core principle of the standard is that
an entity will recognise revenue to depict the transfer of promised goods or services to customers in
an amount that reflects the consideration to which the entity expects to be entitled in exchange for
those goods or services. The standard will require: contracts (either written, verbal or implied) to be
identified, together with the separate performance obligations within the contract; determine the
transaction price, adjusted for the time value of money excluding credit risk; allocation of the
transaction price to the separate performance obligations on a basis of relative stand-alone selling
price of each distinct good or service, or estimation approach if no distinct observable prices exist;
and recognition of revenue when each performance obligation is satisfied. Credit risk will be
presented separately as an expense rather than adjusted to revenue. For goods, the performance
obligation would be satisfied when the customer obtains control of the goods. For services, the
performance obligation is satisfied when the service has been provided, typically for promises to
transfer services to customers. For performance obligations satisfied over time, an entity would
select an appropriate measure of progress to determine how much revenue should be recognised as
the performance obligation is satisfied. Contracts with customers will be presented in an entity's
statement of financial position as a contract liability, a contract asset, or a receivable, depending on
the relationship between the entity's performance and the customer's payment. Sufficient
quantitative and qualitative disclosure is required to enable users to understand the contracts with
customers; the significant judgments made in applying the guidance to those contracts; and any
assets recognised from the costs to obtain or fulfil a contract with a customer. The consolidated entity
will adopt this standard from 1 July 2017 but the impact of its adoption is yet to be assessed by the
consolidated entity.
Directors’ Declaration
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In the directors' opinion:
Renascor Resources Limited
Directors' declaration
30 June 2015
(a)
(b)
(c)
the financial statements and notes set out on pages 40 to 75 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 2015 and of its
performance for the financial year ended on that date, and
(ii)
the remuneration disclosures included on pages 24 to 32 of the directors’ report (as part of the audited
Remuneration Report) for the year ended 30 June 2015, 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: 29 September 2015
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Independent auditor’s report to members
Independent auditor’s report to members
Independent auditor’s report to members
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