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FY2016 Annual Report · Renascor Resources Limited
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Renascor Resources Limited annual report 2016 
 
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Highlights and achievements 

Chairman’s letter 

Review of operations 

Directors’ report 

Auditor’s independence declaration 

Financial statements 

Directors’ declaration 

Independent auditor’s report 

Shareholder information 

Corporate directory 

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A U S T R A L I A

Carnding

Warrior

Gairdner

Arno

Farina

Frome

Olary

Eastern Eyre

Adelaide

Perth

Munglinup

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.

 
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Renascor Resources Limited annual report 2016

Renascor’s past financial year was highlighted by its activities at its 

Arno Graphite Project in South Australia’s Eyre Peninsula, where 

Renascor quickly established the Siviour Graphite Deposit as a potential 

near-term supplier of high-quality, coarse-flake graphite.

Key achievements during the year included:

Acquisition

Renascor secured the rights to the project area in December 

2015 through an agreement to acquire 100% of the issued capital 

of Eyre Peninsula Minerals Pty Ltd (EPM). EPM is an unlisted 

company that has an option to acquire four exploration licences 

that comprise the Arno Graphite Project.

The project tenements included several graphite 

prospects, including the area where Renascor defined the 

Siviour Graphite Deposit.

Siviour discovery

Renascor’s maiden drilling program in the Arno project area in 

January 2016 resulted in the discovery of extensive zones of thick, 

near surface high-grade graphite at Siviour. The near 

flat-lying orientation, substantial true thickness and shallow depth 

of graphite mineralisation suggest the Siviour mineralised body 

is unique within the region and favoured in terms of both its 

potential size and strip-ratio.

Initial Mineral Resource estimate

Renascor’s maiden JORC-compliant Mineral Resource estimate 

for Siviour, released in March 2016, marked Siviour as the 

largest reported graphite deposit in Australia. With the graphite-

mineralised body largely open at shallow depths along strike, 

Siviour contains a JORC compliant Mineral Resource estimate 

of 16.8Mt @ 7.4% TGC for 1,243,200t of contained graphite 

(reported above a cut-off grade of 3% TGC), including high-grade 

mineralisation of 5.9Mt @ 10.0% TGC for 590,000t of contained 

graphite (reported above a cut-off grade of 8% TGC).

3

 
 
Siviour Mineral Resource estimate as of 16 March 2016 

Category 

Indicated  

Inferred  

Total  

Tonnes of 

mineralisation 

(millions) 

6.8  

10.0  

16.8  

TGC 

8.1%  

6.9%  

Contained 

graphite 

(tonnes)

550,800

690,000

7.4%  

1,243,2000

Note: Cut-off grade of 3% total graphitic carbon.

High-quality coarse flake graphite 

Renascor has identified an abundance of coarse flake graphite at 

Sivour, with high-grade samples from drill holes at Siviour returning 

over 80% in the high-value super-jumbo (+500μm), jumbo (+300μm) 

and large (+180μm) categories. With mineral process test work 

currently in progress at Sivour, previous preliminary bench flotation 

and gravity tests over a core sample from an adjacent prospect 

suggest ample scope to produce a premium graphite product 

at Siviour.

As Renascor commences the new financial year, the results from 

2016 provide a firm basis to further advance the Siviour Deposit, 

with work currently underway to increase the confidence in, and 

size of, the Siviour Mineral Resource estimate and to establish flow 

sheet parameters through comprehensive mineral processing 

test work. Renascor expects these work programs to assist in the 

preparation of a scoping study to be completed later this year.

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Dear Shareholder,

It is with great pleasure that I present Renascor’s Annual Report for 

the year ended 30 June 2016.

Renascor made a number of significant breakthroughs during the 

year, commencing with our acquisition of the rights to the Arno 

Graphite Project in South Australia’s Eyre Peninsula. From our 

evaluation of early stage exploration work at Arno, we recognised 

an opportunity to define a valuable graphite resource with 

minimal expenditure.

Our initial drilling at Arno offered immediate returns, as we 

discovered extensive zones of thick, near-surface graphite at the 

Siviour deposit. In March, our maiden mineral resource estimate 

for Siviour marked Siviour as Australia’s largest reported 

graphite JORC Mineral Resource.

Subsequent work programs have further confirmed the potential 

value of Siviour. Further drilling has shown that the graphite 

mineralisation defined within the existing mineral resource 

extends at shallow depth. Preliminary petrographic and metallurgic 

studies suggest Siviour contains an abundance of high-quality, 

coarse-flake graphite. 

Although, Siviour is a recent discovery, our work undertaken during 

the year suggests Siviour is unique within the region and favoured 

in terms of both its potential size and strip-ratio.

We recently appointed a new board member, Dick Keevers, who 

has advanced multiple producing mines from discovery phase 

through development. This expertise, which complements our 

management team’s developmental experience, including in 

South Australia, further strengthens the Renascor team.

As we continue our development of Siviour in the current year, 

there is strong reason to believe the work undertaken to date, 

together with continued developmental activities, may further 

establish Siviour as a significant graphite project and provide 

a catalyst for the re-rating of the company by the equity markets.

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 year. I also 

extend my sincere thanks to you, our shareholders, for your 

continued support.

Yours faithfully,

Stephen Bizzell 

Chairman

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Renascor Resources Limited annual report 2016 
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Port Augusta

South Australia

Kimba

Whyalla

Port Lincoln

Adelaide

Waddikee

Campoona

Oakdale

Cleve

Cowell

Arno Graphite
Project

Kookaburra
Gully

Uley

Port Lincoln

Arno Project Tenements

Other Renascor Tenements

Graphite mine

Graphite deposits

Major roads

Railway

0

50

100 km

Adelaide

Arno Graphite Project

The Arno Graphite Project consists of four granted exploration 

licences, ELs 5618, 5204, 5496 and 5714, covering 1,372km2 in the 

Eyre Peninsula, an established graphite region in South Australia. 

The project is located within 150km of Port Lincoln and Whyalla 

and approximately 500km driving distance from Adelaide. The Uley 

graphite mine, owned by Valence Industries Limited (ASX: VXL), is 

located approximately 140km to the south, and the immediate area 

hosts several additional graphite deposits including Kookaburra 

Gully, being developed by Lincoln Minerals Limited (ASX: LML), the 

Waddikee and Campoona, being developed by Archer Exploration 

Limited (ASX: AXE), and the Oakdale graphite deposit, being 

developed by Oakdale Resources Limited (ASX: OAR).

The area also benefits from significant infrastructure advantages, 

including established workforces in the nearby port cities of 

Whyalla (population 23,000), Port Lincoln (population 15,000) and 

Port Augusta (13,000), as well as the established population centres 

of Arno Bay, Cleve, Cowell and Tumby Bay. Renascor’s licences 

are located within 10km of a major highway and within 20km of 

an operating railway servicing Port Lincoln. The project area is 

connected to South Australia’s main power grid and is serviced by 

ports at Port Lincoln and Whyalla.

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EYRE PENINSULA 
 
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Mineral Resource at Siviour

Renasor commenced its maiden drill program in the Arno project 

area in January 2016. The 24-hole, 1550m reverse circulation 

drilling program focused on the Siviour prospect and resulted in 

an Indicated and Inferred Mineral Resources estimate for Siviour 

as shown below in table 1. A nominal cut-off grade of 3% TGC 

has been established for Siviour based on the potential mining 

methods and costs of open-cut mining operations that could be 

undertaken for mineralisation of this type.

Table 1: Siviour Mineral Resource estimate as of 16 March 2016 

Category 

Indicated  

Inferred  

Total  

Tonnes of 

mineralisation 

(millions) 

6.8  

10.0  

16.8  

Note: Cut-off grade of 3% total graphitic carbon.

TGC 

8.1%  

6.9%  

7.4%  

Contained 

graphite 

(tonnes)

550,800

690,000

1,243,2000

Siviour Mineral Resource breakdown by cut-off grades

Table 2 below shows the Siviour total Mineral Resource at varying 

cut-offs. As noted below, Siviour contains a significant high-grade 

resource at an 8% cutoff: 5.9Mt @ 10.0% TGC for 590,000t of 

contained graphite.

Table 2: Siviour Mineral Resource by cut-off grade 

Cut-off	

grade TGC 

Tonnes	of	

mineralisation 

(millions)

3%  

4% 

5%  

6%  

7% 

8%  

9%  

10%  

16.8  

 15.9  

14.5  

11.4  

 8.5 

5.9  

3.8 

2.5  

TGC 

7.4%

7.6%

7.9%

8.5%

 9.2%

10.0%

 10.8%

11.5%

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Renascor Resources Limited annual report 2016 
 
 
 
	
 
 
 
 
 
 
 
 
 
 
 
 
 
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S

SIV017

SIV018

Calc-silcate

Siviour: Section 631800 East

SIV019

SIV020

SIV021

SIV022

Graphite schist

                       High-grade graphite zone

Cover sequence

Open

6245700

6245800

6245900

6246000

6246100

N

0

-100

The Siviour deposit is shallow, tabular and near flat-lying, with most 

of the graphite mineralisation occurring beneath only 10m to 25m 

of cover. As shown in Figure 3, Section 631800E, the westernmost 

section drilled of the Indicated Resource, shows a thick, shallow 

graphite-mineralised zone that is near flat lying over the 

southern and central portions of the prospect before dipping gently 

to the north.

Siviour in comparison to other graphite resources in Australia

As shown below in Figure 4, the Siviour deposit is the largest 

reported JORC resource in Australia, with ample scope for 

expansion.

Australian Graphite Deposits

Halberts

Yalbra

Mt Dromedary South

Kookaburra Gully

Campoona 
Central

Uley Pit 2

Mt Dromedary Central

Koppio

Siviour (8%)

Campoona Shaft

Wilclo South

Uley Stockpiles

Oakdale East
Barracuda

Longtom

Wahoo

Oakdale

Emporer

Siviour (3%)

5

10

15

20

25

30

35

Deposit size - Million Tonnes

Figure 3. Siviour 

prospect: Geological 

cross-section for 

north-south Section 

631800E

C
G
T
%
e
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G

20

18

16

14

12

10

8

6

4

2

0

Figure 4. Scatter 

plot showing grade 

(%TGC) and tonnage 

of Siviour (at 3% and 

8% cut-off grades) with 

the exploration target 

estimate and reported 

resources for Australian 

graphite deposits.

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Extensions to Siviour Deposit

Following completion of its initial drilling at Siviour, Renascor 

identified multiple high conductivity anomalies at Siviour in areas 

along-strike, suggesting high potential to expand the initial size of 

the Siviour deposit. As shown in Figure 5, a ground electromagnetic 

(EM) survey identified potential extensions to Siviour in areas along-

strike to the east, west and north of the Indicated Resource.

631000m E

632000m E

633000m E

634000m E

SIV053

SIV052

SIV042

SIV049

SIV058

SIV041

SIV048

SIV057

SIV036

SIV050

SIV056

SIV040

SIV051

SIV055

SIV043

SIV039

SIV047

SIV054

SIV037

SIV038

SIV044

SIV046
SIV045

Indicated 
Resource

SIV060

SIV05
SIV059

SIV061

SIV062

SIV066

                        Exploration target

SIV065

SIV064

SIV063

Conductivity
(Siemens)

2.00

0.20

0.06

0.0

Contour
Interval 1.0 S

6
2
4
7
0
0
0
m
N

6
2
4
5
0
0
0
m
N

Figure 5. Location 

of recent drill 

collars over ground 

electromagnetic 

image at Siviour.

0

500

metres

1000

Signifi cant graphite intersection

In July 2016, Renascor completed a 2,100m reverse circulation 
drill program targeting these EM anomalies and intersected thick 

intervals of shallow, high grade graphite in areas along-strike to the 

east and west of the Siviour Graphite Deposit.

To the west, Renascor’s drilling confirm that the mineralised 

graphite body located within the Siviour Indicated Resource is 

continuous at least an additional 1km to the west and remains 

open to the north and west of the current drilling limits. Results 

from the July 2016 program included multiple intersections of thick, 
shallow high-grade graphite, including:

•  Siv054: 25m @ 9.0% TGC (from 13 to 38m) 

•   Siv055: 28m @ 7.1% TGC (from 28 to 56m) 

•  Siv056: 23m @ 8.7% TGC (from 49 to 72m).

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Renascor Resources Limited annual report 2016 
 
 
 
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The drill results suggest a north dipping tabular graphitic horizon 

in this western area. As shown in the south-north cross-section in 

Figure 6, the mineralised horizon typically has a broad higher-grade, 

+5% TGC cut-off and a narrow +3% TGC grade halo particularly in 

the hanging wall of the deposit. This generally flat-lying orientation 

is consistent throughout both the areas drilled to the west of the 

Indicated Resource and within the Indicated Resource area. 

Shown in 
cross-section 
below

Figure 6. Siviour -- Plan view 

showing recent drill holes 

over EM conductive zones 

and cross-sections with TGC 

Drilling to the immediate east of the existing Indicated Resource 
at Siviour (in areas outside of JORC Mineral Resource estimate), 
included some of the thickest intervals of graphite drilled to date, 
with results including:

assay results (5%TGC cut-off 

•  Siv061: 35m @ 8.2% TGC (from 44m to 79m), with a 74m 

in dark red and 3% TGC cut-

graphite zone from 5m to 79m

off in light red) over Section 

•  Siv062: 35m @ 8.7% TGC (from 17m to 52m), with a 56m 

631600E).

graphite zone from 5m to 61m

•  Siv063: 23m @ 9.2% TGC (from 16m to 39m)

This thick, eastern graphite zone remains open and offers potential 
for significant extensions to the Siviour Deposit. Renascor expects 
the recent drill results will form the basis of an updated Mineral 
Resource estimate for Siviour to be released later this year.

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Graphite flake size and mineral processing test work

In addition to establishing Siviour as a premium graphite resource 

in terms of its size and grade, initial testing undertaken during 

the year identified an abundance of coarse flake graphite from 

petrographic analysis of high-grade drill samples, with over 80% in 

the high-value super-jumbo (+500μm), jumbo (+300μm) and large 

(+180μm) categories. Nine high-grade samples from four recent 

reverse circulation holes at Siviour were examined by Pontifex and 

Associates. Photomicrographs prepared from these samples (see 

Figures 7 - 10) have returned flake graphite with lengths of up to 

1,600μm and over 60% of graphite flakes recording lengths of over 

500μm. Complete results are described below in table 3.

Drill	

hole 

Depth	

(m) 

Total	

Graphite	flake	

Flake	length	>	 Flake	length	> 

graphitic 
carbon1 

length range 

200 microns 

500 microns 

(microns)

Siv001  

Siv001  

Siv001  

Siv002  

Siv002  

Siv002  

Siv004  

Siv004  

Siv014  

63  

68  

73  

82  

92  

97  

56  

72  

18  

16.9%  

100 to 1,600  

82.5%  

9.1%  

100 to 1,000  

82.5%  

10.6%  

100 to 1,000  

87.5%  

15.1%  

100 to 1,200  

10.1%  

100 to 1,000  

4.3%  

100 to 600  

12.3%  

50 to 1,400  

10.8%  

100 to 800  

17.2%  

10 to 1,500  

75%  

80%  

75%  

85%  

75%  

85%  

Table 3. Summary of graphite flake analysis from drill chips at Siviour prospect

65%

60%

70%

65%

60%

50%

80%

65%

40%

The abundance of coarse flake graphite identified in petrographic 

analysis of Siviour drill samples suggests that the graphite-

mineralised zones at Siviour have the potential to produce 

significant quantities of premium-priced coarseflake graphite in 

concentrate. While it is expected that the proportion of coarse 

flake graphite will be diminished in mineral processing, Renascor is 

encouraged by the high proportion of coarse-flake graphite in the 

high-grade drill samples at Siviour.

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Renascor Resources Limited annual report 2016 
 
 
 
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While mineral processing test work has not yet been undertaken 

on the high-grade graphite zones at Siviour, preliminary flotation 

tests from the adjacent Paxtons prospect have produced 

favourable graphite recoveries and purity of concentrates, 

including producing flake graphite in the super-jumbo (+500μm) 

category. Flotation and gravity tests were performed in 2014 

on samples from an historical core hole (CRA090) drilled on the 

eastern margin of Paxtons, located approximately 2km to the 

southeast of the Siviour Inferred Resource. The hole, which was 

drilled to test for uranium and not originally assayed for graphite, 

intersected 24m of graphitic mineralisation, which subsequent 

assaying has shown included 12.4m @ 8.34% TGC from 67.7m. 

ALS Metallurgy performed bench flotation and gravity tests over 

a 2.5kg core sample from CRA090, obtaining carbon (graphite) 

recovery of 87% and producing 93% purity of concentrates with 

flake size of up to 600μm. 

500μm

500μm

Figure 7. Photomicrograph of graphite flakes (in white) from 

Figure 8. Photomicrograph of graphite flakes (in white) from 

Siv014 (17m to18m)

Siv002 (92m to 93m)

500μm

500μm

Figure 9. Photomicrograph of coarse graphite flakes (in white) 

Figure 10. Photomicrograph of graphite flakes (in white) from 

from Siv004 (56m to 57m)

Siv001 (73m to 74m)

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Acquisition of EPM

Renascor secured the rights to the Arno Project in December 

2015 through an agreement to acquire up to 100% of the issued 

capital of Eyre Peninsula Minerals Pty Ltd (EPM). EPM is an unlisted 

company that has an option to acquire the four exploration 

licences that comprise the Arno Graphite Project.

By virtue of having met exploration commitments and having 

issued shares to EPM shareholders, Renascor currently holds a 49% 

interest in EPM. Renascor acquired 20% of EPM in exchange for 

having completed $400,000 in exploration expenditure by 21 June 

2016. Renascor acquired an additional 29% interest in EPM from 

EPM shareholders in exchange for 38,666,667 ordinary shares in 

Renascor, which Renascor issued on 11 July 2016.

In August 2016, Renascor exercised an option to acquire (subject 

to shareholder approval) the remaining shares in Renascor and 

thereby increase its ownership interest in EPM to 100%.

Subject to obtaining shareholder approval at Renascor’s upcoming 

annual shareholder meeting, Renascor will acquire the remaining 

shares in EPM in exchange for 42,068,884 ordinary shares in 

Renascor and 15,000,000 unlisted options at $0.05 per option and 

expiring three years from the date of issue.

EPM option to acquire Ausmin

EPM’s primary asset is an option to acquire Ausmin Development 

Pty Ltd (Ausmin), which owns the underlying rights to the 

exploration tenements that comprise the Arno Graphite Project. 

The option can be exercised at any time prior to 30 September 

2018, and can be extended to December 2019 and to December 

2020 by payment of $150,000 and $250,000, respectively. To 

exercise the option, EPM must complete a bankable feasibility 

study in relation to the commercial development of graphite on the 

project tenements and issue to the owners of Ausmin a 22% equity 

interest in a listed vehicle holding the project. After exercise of the 

option, the Ausmin shareholders are entitled to an overriding 1% 

gross royalty on minerals produced from the project tenements.

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Renascor Resources Limited annual report 2016 
 
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A U S T R A L I A

W E S T E R N 
A U S T R A L I A

Perth

Munglinup

Location:  
Tenements:  
Area:  
Target:  

Albany Fraser Range (Western Australia) 

E74/517, E74/518, E74/523, E74/531, E74/538, E74/544, E74/545 
579 km2 
Graphite, lithium and nickel sulphide

Munglinup

The Munglinup project is located within the Albany-Fraser Range 

province of Western Australia between the regional towns of 

Esperance and Ravensthorpe. See Figure 11. Renascor considers 

the project area to offer high prospectivity for graphite, lithium and 

nickel sulphide and it has identified multiple drill-ready targets.

Figure 11. Significant 

mines and deposits in 

relation to Renascor’s 

Munglinup Project.

Mt Thirsty Cobalt/Nickle Deposit

Mount Marlon Lithium Deposit

Maggie Hays Nickle Deposit

Mt Henry Gold Mine

Munglinup Tenements

Rathensthorpe

Mt Cattlin 
Lithium Mine

Halbert’s Graphite

Esperance

14

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Graphite prospects

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 1.47Mt at a fixed carbon content of 
18.2%2. Sixty-seven percent (67%) of the recoverable graphite 
from Halbert’s is reportedly coarse flake (+150μm, with 35% of 
recoverable graphite classified as jumbo flake (+300μm)3.

The regional structure that hosts the Halbert’s deposit, the Halbert’s 
Shear Zone, extends through Renascor’s new project area over 
approximately 25km strike extent. See Figure 12. 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% TGC4 . To the immediate north of the Halbert’s deposit, the 
Halbert’s Shear Zone extends for approximately 20km to the north 
on E74/517 and E74/531. A recently completed electromagnetic 
(VTEM) survey over this northern extension has identified several 
prospective conductive targets that Renascor considers high 
priority targets for Halbert’s-style graphite deposits.

0

5 km

Munglinup 
Ultramatic

Halbert’s Shear 
Zone (interpreted)

Young River 
Ultramatics

Figure 12. Munglinup 

project, showing VTEM 

and SKYTEM late channel 

conductivity for central 

portion, superimposed on a 

background of magnetics.

Halbert’s  
Graphite

Munglinup Central 
Drill collars

2   As reported in Geological Survey of Western Australia (GSWA) Mineral Resources Bulletin 
26, in 2015, graphite mineralisation in the Halbert’s Main Zone has a ‘resource estimate’ 

subsequently upgraded to a JORC compliant measured and indicated resource by Clifford 

(2009) to 1.47Mt at a fixed carbon content of 18.2% TC (total carbon) over a strike length 

of 555m to an average depth of 55m. This resource calculation for Halbert’s Main Zone 
was based on an in situ ore density of 1.91 t/m3 with a fixed carbon cutoff of 5% TC, and a 
minimum true thickness of 1.0m for tabular graphite bodies.’

3   Mineralisation Report in Support of Application for Mining Lease for M74/24, October 2009.

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Lithium prospects

The Munglinup project area is located approximately 70km from 

the Mt Cattlin spodumene and tantalum mining operation and 

is considered prospective for lithium-cesium- tantalum (LCT) 

pegmatites of the type associated with the Mt Cattlin mine. The 

area is mapped as the Munglinup gneiss, with remnants of the 

Lake Johnston Archean greenstone interpreted through the 

area. Although LCT pegmatites are uncommon, they are typically 

hosted within Archean greenstones. Accordingly, Renascor 

considers portions of its Munglinup project area with mapped 

and interpreted Archean greenstone as potential targets for LCT 

pegmatite development.

Figure 13. Regional EM 

image for Munglinup 

Project with interpreted 

greenstone trends (Western 

Mining Services 20135).

Renascor has identified a zone of anomalous lithium geochemistry 

from a roadside auger soil-sampling program undertaken by 

AngloGold Ashanti (ASX: AGG) in connection with a gold exploration 
program in 20106. The AngloGold program included 115 samples 
within Renascor’s E74/538, an area that has been previously 

mapped to include Archean greenstones. The AngloGold samples 

underwent multi-element testing and included assaying for lithium. 

The lithium results include a set of elevated assays over the Young 

River lithium prospect, an approximately 4km trend, with peak 

value for lithium of 74.9 ppm, defined on a north-south oriented 

traverse near the eastern limit of the tenement. See Figure 14.

4   GSWA Bulletin 26. See also Lithex Resources Limited ASX release dated 5 July 2013.

5   Western Mining Services, J. Hronsky, 2013. Report to Lithex Resources Ltd, Review of  

the NiS Potential of Lithex Resources Ltd Munglinup Exploration Project.

6  Fletcher, Damian and Howard, Brendan 2010, Anglogold Ashanti Australia Limited  
  Annual  Report Viking Project – Viking Group 4 (WAMEX A088744).

16

 
 
 
In addition to the Young River area, aeromagnetic data define large 

areas of enhanced magnetic response consistent with possible 

remanent Archean greenstones, in particular in areas to the area 

immediate west of the elevated lithium zone at Young River. A 

large area of subdued magnetic relief to the southwest of the 

lithium anomalous zone is also interpreted as a possible granitic 

intrusion that may represent a source for late stage pegmatitic 

intrusion along the strong north-easterly trending structural fabric. 

See Figure 15. Renascor considers these magnetic areas to offer 

additional potential for locating lithium mineralisation associated 

with pegmatites.

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Figure 14. Young River 

lithium prospect – soil 

geochemical results.

Figure 15. Young River 

prospect, showing elevated 

lithium geochemical 

samples on regional 

aeromagnetic image.

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Nickel prospects

Renascor also considers the project area to offer 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 Limited’s Maggie Hays and Emily Ann nickel 

sulphide deposits, located approximately 50km to the north of 

E74/544. See Figure 11.

In 2013, Lithex Resources Limited (ASX: LTX) commissioned a review 

of the project’s nickel sulphide potential by Western Mining Services 

Pty Ltd. See Lithex Resources ASX release dated 9 September 2013. 

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, potassium and lead 

anomalism. According to Western Mining Services, the anomalous 

mineralisation from the Lithex drilling is consistent with the distal 

expression of a nickel sulphide deposit. Accordingly, Renascor 

considers that conductive zones within the identified Greenstone 

belt offer high potential for nickel sulphides, in addition to graphite.

Eastern Eyre

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A U S T R A L I A
A U S T R A L I A

Farina

S O U T H 
Warrior
A U S T R A L I A
Gairdner

Olary
Eastern Eyre

Perth

Arno

Adelaide

Location:  
Tenements:  
Area:  
Target:  

Southern Gawler Craton (South Australia) 

ELs 4721, 5012 and 5236 (100%)  
1,200 km2 
Copper and associated mineralisation

Eastern Eyre

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 

16. 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.

Figure 16. Olympic Dam copper belt, 
showing location of Eastern Eyre project.

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The project area includes large portions of the Roopena-Angle Dam 

fault corridor, a largely untested zone that extends over approximately 

40 kilometres. See Figure 17. 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.

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 area immediately 

east of Extension Tank, Renascor has identified additional untested 

gravity, magnetic and geochemical drill targets.

Warrior

Figure 17. Eastern Eyre 

project, Eastern Eyre 

project, showing identified 

gravity, magnetic and 

geochemical targets.

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A U S T R A L I A
A U S T R A L I A

S O U T H 
A U S T R A L I A

Perth

Warrior
Warrior

Gairdner

Farina

Olary

Arno

Adelaide

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Location:  
Tenements:  
Area:  
Target:  

Gawler Craton (South Australia) 

ELs 4570 and 4707 (100%, subject to 1% net smelter royalty) 
310 km2 
Sandstone-hosted uranium

Warrior

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 to create low cost 
opportunities to identify a valuable resource under present 
market conditions.

Through the use of additional core drilling and a prompt 
fission neutron 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 anticipates commencing drill-testing following 
indications of a recovery in the uranium price.

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A U S T R A L I A

A U S T R A L I A

S O U T H 
A U S T R A L I A

Perth

Carnding
Warrior

Gairdner

Farina

Olary

Adelaide

Location:  
Tenements:  
Area:  
Target:  

Gawler Craton (South Australia) 

EL 4707 (100%, subject to 1% net smelter royalty) 
162 km2 
Gold

Carnding

Farina

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 19. The project area contains 
several areas prospective for Challenger-
style gold deposits.

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.

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). 
The prospect is open to the north and 
Renascor considers it prospective for high-
grade Challenger-style gold deposits.

Figure 19. Carnding project

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A U S T R A L I A
A U S T R A L I A

S O U T H 
A U S T R A L I A

Perth

Warrior

Gairdner

Farina
Farina

Olary

Adelaide

Location:  
Tenements:  
Area:  
Target:  

Adelaide Fold Belt (South Australia) 

ELs 4822 and 5586 (100%) 
1,305 km2 
Sedimentary and near-surface oxide copper

Farina

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 Beltstyle, 
sedimentary copper deposits and near-surface 
oxide copper deposits.

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.

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Figure 20. Farina Project, showing geology and historical 

copper occurrences.

Renascor Resources Limited annual report 2016 
 
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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 2016.

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 and developing mining 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 was responsible for 
developing sales strategy, executing trades and 
swaps and negotiating all off-take 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.

26

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 former 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 (2011 to 
2015), 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

Richard Keevers, Non-Executive Director (Appointed 
22 July 2016)

Mr. Keevers has over 40 years of experience 
in the resource sector, having previously held 
senior executive positions with Broken Hill 
South Limited and Newmont Mining Limited. 
Mr Keevers’ experience includes advancing 
multiple producing mines from discovery phase 
through development, including the Telfer gold 
and copper mine, the Phosphate Hill phosphate 
mine and the Baal Gammon copper mine. Mr 
Keevers also was a substantial shareholder 
of and served as an executive director for 
Pembroke Josephson Wright Limited, an 
Australian share brokerage firm. Mr Keevers 
has served on boards of several ASX-listed 
resource companies, and he is currently a non-
executive director of Santana Minerals Limited. 
Mr Keevers also serves as chairman of unlisted 
Eyre Peninsula Minerals Proprietary Limited

Richard is a graduate of the University of New 
England, NSW (BSc, Geology), and is a fellow of 
Australasian Institute of Mining and Metallurgy.

Special responsibilities 
Nil

 
 
 
 
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Andrew Martin, Non-Executive Director

Chris Anderson, Non-Executive Director

Andrew Martin is a director of 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

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

Chris Anderson is an experienced geophysicist 
with over 40 years in mineral exploration in 
Australia and abroad. His recent experience 
includes an instrumental role in the 2005 
discovery of the Carrapateena copper-gold-
uranium mine in South Australia. His earlier 
experience includes acting as Placer Pacific’s 
Exploration Manager for Eastern Australia, 
where he was instrumental in the discovery of 
the Kalkaroo copper-gold-molybdenum deposit 
in South Australia.  Mr Anderson’s significant 
international experience includes 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.

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.

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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 

Fully Paid Ordinary Shares 

Listed Share Options 

Performance Rights

David Christensen 
Geoffrey McConachy 
Andrew Martin 
Stephen Bizzell 
Chris Anderson 
Richard Keevers 

Meetings of directors

14,618,667 
7,959,667 
23,834,988 
17,152,335 
12,070,113 
20,195,334 

666,667 
541,667 
791,667 
1,166,667 
1,500,000 
- 

- 
- 
- 
- 
- 
-

The numbers of meetings of the Company’s board of directors and of each board committee held 
during the year ended 30 June 2016, and the numbers of meetings attended by each director were:

Full meetings of directors  

Audit Committee meetings

Director 

Stephen Bizzell 

David Christensen 

Geoffrey McConachy 

Andrew Martin 

Chris Anderson 

A 

Attended 

B 

Held 

A 

Attended 

8 

8 

8 

8 

8 

8 

8 

8 

8 

8 

2 

N/A 

2 

2 

N/A 

N/A 

B 

Held

2 

N/A 

2 

2 

N/A 

N/a

Richard Keevers (Appointed 22 July 2016) 

N/A 

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

Dividends - Renascor Resources Limited

  30 September 2016) were issued in 

There were no dividends declared or paid during 
the financial year (2015: Nil).

Review and results of operations

a)   Corporate and Financial

•  For the year ended 30 June 2016, the loss 
for the Group after providing for income 
tax was $890,079 (2015: $4,932,426). 
This included a write down of capitalised 
exploration and evaluation expenditure 
of $265,602 and relinquishment of five 
tenements during the period.

•  On 9 July 2015 the retail component of an 

accelerated non-renounceable entitlement 
offer (ANREO) was completed with the 
issue of 20,650,612 paid ordinary shares 
raising $419,012 before costs. On 9th July 
38,725,310 free attaching listed options 
(exercisable at $0.03 and expiring on 

28

relation to both the institutional and retail 
components of the ANREO.

•  During the year 3,276,424 shares were 

issued to Non-executive Directors as part 
of the Non-Executive Directors’ Share Plan 
(NEDSP) approved by shareholders at the 
AGM held on 26 November 2015. Non-
executive directors have received up to 
50% of their compensation in shares in the 
Company and received a cash payment for 
50% of their director fees.

•  On 26 February 2016 the Company 

completed a transaction to acquire 100% 
of Sol Jar Property Pty Ltd, the owner of 
the Munglinup project, a highly prospective 
graphite-nickel sulphide tenement position 
in the Albany-Fraser Range province of 
Western Australia. As consideration the 
Company issued 18,000,000 ordinary shares 
and 4,000,000 listed options @ $0.03 and 
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•  On 2 December 2015, the Company 

entered into a binding agreement with 
Eyre Peninsula Minerals Pty Ltd (EPM) and 
EPM’s shareholders (EPM JV Agreement) 
that granted the Company an option to 
acquire up to 100% of EPM in exchange for 
exploration expenditure and shares and 
options in Renascor. EPM, in turn, has an 
option to acquire Ausmin Development 
Pty Ltd (Ausmin), an unlisted company 
that holds the underlying rights to the 
Arno graphite project. Pursuant to the 
EPM JV Agreement the company managed 
the exploration program as agreed with 
EPM. The Company completed its earn-
in commitment during June 2016 and 
accordingly acquired 20% of EPM’s 
issued capital.

•  On 13 May 2016 the Company issued 

47,400,003 shares and 11,850,003 free 
attaching listed options exercisable at $0.03 
per share expiring on 30 September 2016, 
to complete a placement to sophisticated 
investors raising $711,000 before costs.

b)   Operations

•  Renascor’s activities during the past 

financial year were directed at exploring for, 
acquiring and developing mineral assets.

•  Significant activities undertaken during the 

year included:

-  The acquisition of the Arno Graphite 

Project,

-  The discovery of significant graphite 

mineralization at the Siviour prospect,

-  The declaration of the initial Mineral 
Resource estimate for the Siviour 
Deposit, and

-  The identification of high quality, coarse-

flake graphite at Sivour

•  Renascor has maintained a strong 

exploration portfolio, identifying and 
maintaining a strong pipeline of targets 
for the development of graphite, lithium, 
uranium, gold, copper and other mineral 
assets. To limit non-essential expenditure, 
Renascor has also relinquished 5 tenements 
considered less prospective.

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

Pursuant to the EPM JV Agreement, the Company 
completed the exercise its first option to acquire 
an additional 29% of the issued shares of EPM. 
On 11 July 2016 the Company issued 38,666,667 
ordinary shares in Renascor at the closing price of 
$0.016 valued $618,667 and taking the Company’s 
holding in EPM to 49%.

On 11 July 2016, the Company issued 39,266,668 
ordinary fully paid shares and 9,816,668 listed 
options exercisable@ $0.03 expiring on 30 
September 2016. The Shares and options 
completed the fundraising initiated in May 2016 in 
raising a further $589,000 before costs.

On 11 July 2016, the Company issued 600,001 
ordinary fully paid shares to management as a 
result of the exercise of performance rights held.

On 25 August 2016, the Company issued 32,000 
ordinary fully paid shares as a result of the 
exercise of 32,000 listed options @ $0.03 expiring 
on 30 September 2016

On 29 August 2016 the Company exercised its 
second option to acquire the remaining 51% 
of EPM, subject to shareholder approval within 
2 months. Pursuant to the EPM JV Agreement 
the consideration will be Ordinary shares to the 
value of $2,040,000 plus 15,000,000 unlisted 
options with an exercise price of 5 cents per 
ordinary share and expiry 3 years from the date 
of issue. The value and issue price of each share is 
calculated using the 20-day VWAP as at the date of 
exercise of the option which has been calculated 
as $0.048492. Accordingly, subject to shareholder 
approval, Renascor will issue 42,068,684 ordinary 
shares and 15,000,000 unlisted options to 
subscribe for fully paid ordinary shares in Renascor 
with an exercise price of 5 cents per ordinary share 
and expiry 3 years from the issue date.

On 5 September the Company announced that 
it had executed an underwriting agreement that 
provides the confidence that it will receive total 
gross proceeds of $1.9m from its listed 3 cent 
options expiring on 30 September 2016 (“Listed 
Options”). The underwriting agreement is with 
Bizzell Capital Partners Pty Ltd (“BCP”), an entity 
associated with Stephen Bizzell (Chairman of 
Renascor), pursuant to which BCP has agreed to 
act as Underwriter to the exercise of the Listed 
Options and will also have the right to act as Lead 
Manager to a share placement to raise up to an 
additional $600,000.

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In the opinion of the directors, no other matter or 
circumstance has arisen since 30 June 2016 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, development 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. 

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 located on the Company’s website

Remuneration report – audited

(www.renascor.com.au/company)

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:

Directors 

Position

Non-Executive Chairman 
Stephen Bizzell 
Managing Director 
David Christensen 
Geoffrey McConachy  Executive Director 
Andrew Martin 
Chris Anderson 
Richard Keevers 

Non-Executive Director 
Non-Executive Director 
Non-Executive Director

Other key management personnel:

Angelo Gaudio 

CFO and Company  
Secretary

provides further information on the role of this 
committee.

Relationship between remuneration and Group 
performance

During the financial year, the Group has 
generated losses as its principal activity was 
exploration for copper, gold, uranium and other 
minerals within South Australia. 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.

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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 

 2016  

2015  

2014  

2013  

2012

Profit/(Loss) for the year 

attributable to owners ($) 

($890,079) 

($4,932,426) 

($1,513,910) 

($528,989) 

(297,219)

Basic earnings per share (cents) 

Share price (cents) at year end 

(0.4) 

2.0 

(3.5) 

2.0 

(1.3) 

3.7 

(0.5) 

3.5 

(0.3)

5.2

Increase/(decrease) in share price (%) 

(0%) 

(45.9%) 

5.7% 

(32.7%) 

(30.7%)

Total KMP incentives as a percentage 

of profit/(loss) for the year (%) 

- 

(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.

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. Since 
the 1 October 2014 non-executive directors 
have received payment for 50% of their director 
fees through the issue of NEDSP shares issued 
bi-annually each 6 month period 1 October to 31 
March and 1 April to 30 September.

The following director fees have applied during 
the period:

Base	fees	

From	1	July	2016		

From	1	July	2015

Chair 

$60,000 p.a. 

$60,000 p.a.

Other non-executive directors

$33,000-40,000 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.

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The Group has structured an executive 
remuneration framework that is market 
competitive and complementary to the reward 
strategy of the organisation.

Alignment to shareholders’ interests:

•  has economic profit as a core component of 

plan design;

• 

focuses on sustained growth in shareholder 
wealth, consisting of dividends and growth in 
share price;

•  delivering constant return on assets as well 

as focusing the executive on key non-financial 
drivers of value; and

•  attracts and retains high calibre executives.

Alignment to program participants’ interests:

• 

• 

rewards capability and experience;

reflects competitive reward for contribution to 
growth in shareholder wealth;

•  provides a clear structure for earning rewards; 

and

•  provides recognition for contribution.

The framework provides a mix of fixed and long-
term incentives.

The board carries out the functions of the 
Remuneration and Nominations Committees and 
is responsible for reviewing and negotiating the 
compensation arrangements of senior executives. 
It assesses the appropriateness of the nature 
and amount of remuneration of such officers on 
a periodic basis by relevant employment market 
conditions with the overall objective of ensuring 
maximum stakeholder benefit from the retention 
of a high quality board and executive team. The 
board manages remuneration and incentive 
policies and practices and remuneration packages 
and other terms of employment for executive 
directors, other senior executives and non-
executive directors. The Corporate Governance 
Statement provides further information on the 
role of a Remuneration committee.

The executive pay and reward framework has the 
following components:

•  base pay and benefits, including  

superannuation;

•  short-term incentive through a cash bonus    
  may be determined by the board; and

• 

long-term incentives through the issue of  
unlisted share options and performance rights.

The combination of these comprises an 
executive’s total remuneration.

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.

32

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 
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 have been 
subject to a corporate share performance (CSP) 
condition and a personal key performance 
indicator (KPI) condition.

The performance rights were issued for nil 
consideration and had 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 
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Total 

$

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 26 and 27 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.

Key management personnel of the Company and the Group

2016 

Name 

Non-executive directors 
Stephen Bizzell 1 
Andrew Martin 1 
Chris Anderson 1 

Short-term 
employee benefits 

long-term 
benefits 

Post 
employment 
benefits 

Share-based 
payments 

Non- 
 Cash  
salary  monetary 
benefits 

and fees 

Long service 
leave 

NEDSP shares1 
Super-   &  performance 
rights 

annuation 

$ 

$ 

$ 

30,000 
16,530 
16,500 

$ 

- 
- 
- 

- 

$ 

- 
- 
- 

- 

- 
3,470 
- 

3,470 

30,000 1 
20,000 1 
16,500 1 

60,000 
40,000 
33,000

66,500 1  133,000

Sub-total non-executive directors 

63,030 

Executive directors 
David Christensen 
Geoffrey McConachy 

Other key management personnel 
 Angelo Gaudio 2 

Sub-total executive directors and 
other key management personnel 

Total key management 

249,600 
239,200 

18,785 
- 

14,357 
13,759 

19,308 
19,308 

-  302,050 
-  272,267

222,952 2 

- 

0 

14,118 

-  237,070

711,752 

18,785 

28,116 

52,734 

-  811,387

personnel compensation 

774,782 

18,785 

28,116 

56,204 

66,500 1  944,387

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. During the 
year NEDSP shares were issued as part of tranche#2 for the 6 month period 1 April to 30 September 2015 and 
tranche#3 for the 6 month period 1 October 2015 to 31 March 2016.with the remaining balance accrued, to be 
issued in tranche#4 for the 6 month period 1 April to 30 September 2016 during the next financial year.

2   On 15 April 2016, Mr Gaudio terminated his employment agreement with the Company. Cash salary and fees 
include the payment of annual leave entitlements at termination of $43,607. On 15 April 2016, the Company 
entered into an agreement with Angelo Gaudio and his company to provide services as Company Secretary and 
Chief Financial Officer. Services are to be provided at a rate of $8,333 per month plus GST plus expenses. The 
agreement may be terminated by either party on one months’ notice.

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Key management personnel of the Company and the Group

2015 

Name 

Non-executive directors 
Stephen Bizzell  
Andrew Martin 
Chris Anderson 

Short-term 
employee benefits 

long-term 
benefits 

Post 
employment 
benefits 

Share-based 
payments 

Non- 
 Cash  
salary  monetary 
benefits 

and fees 

Long service 

Options 
Super-   &  performance 
rights 

leave  annuation 

$ 

37,500 
21,530 
20,625 

$ 

- 
- 
- 

- 

$ 

- 
- 
- 

- 

$ 

$ 

Total 

$

- 
3,470 
- 

3,470 

22,500 1 
15,000 1 
12,375 1 

60,000 
40,000 
33,000

49,875 1 

133,000

Sub-total non-executive directors 

79,655  

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 

290,703  
278,590 

17,498 
- 

12,118 
11,614 

18,783 
18,783 

3,302 
342,404 
3,184  312,1717

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

The relative proportions of remuneration that are linked to performance and those that are 
fixed are as follows:

Name 

2016 

2015 

2016 

2015 

2016 

2015 

 Fixed remuneration  

At risk - STI 

At risk - STI* 

Non-executive directors of the Company 
Stephen Bizzell  
Andrew Martin 
Chris Anderson 

Executive directors of the Company 
David Christensen 
Geoffrey McConachy 

100%  
100%  
100%  

100% 
100% 
100% 

100%  
100%  

99.0% 
99.0% 

Other key management personnel of the Group 
 Angelo Gaudio 

100%  

99.4% 

-% 
-% 
-% 

-% 
-% 

-% 

-% 
-% 
-% 

-% 
-% 

-% 

-% 
-% 
-% 

-% 
-% 

-% 
-% 
-%

1.0% 
1.0%

-% 

0.6%

*   Since the long-term incentives are provided exclusively by way of options and or 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.

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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 2016 
and 2015.

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 

f) Share-based compensation

termination payment of six months. As at year 
ended 30 June 2016, 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 2016, 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, terminated his employment 
agreement with the Company on 15 April 2016. 
On 15 April 2016 the Company entered into an 
agreement with Angelo Gaudio and his company 
to provide services as Company Secretary and 
Chief Financial Officer. Services are to be provided 
at a rate of $8,333 per month plus GST plus 
expenses. The agreement may be terminated by 
either party on one months’ notice.

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 

54th percentile 

20% 

Tranche 1a 

28 Feb 2014 

28 Feb 2014 

30 Nov 2019 

$Nil 

54th percentile 

20% 

Tranche 1b 

28 Feb 2014 

28 Feb 2014 

30 Nov 2019 

$Nil 

80% of KPI 

80% 

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 

# 20% 

# 54th percentile 

# 20% 

80%

80%

20%

# 80%

# 80%

Tranche 2b 

28 Feb 2014 

30 Jun 2014 

30 Nov 2019 

$Nil 

80% of KPI 

* 80% 

* 20%

Tranche 3 

30 Nov 2012 

30 Jun 2015 

30 Nov 2019 

$Nil 

# Below 50th percentile 

# Nil% 

# 100%

Tranche 3a 

28 Feb 2014 

30 Jun 2015 

30 Nov 2019 

$Nil 

# Below 50th percentile 

# Nil% 

# 100%

Tranche 3b 

28 Feb 2014 

30 Jun 2015 

30 Nov 2019 

$Nil 

80% of KPI 

* 80% 

* 20%

#    The CSP Performance rights conditions were assessed by the disinterested board members and the TSR Rank 
achieved for Year Ended 30 June 2014 was determined to be between 50th and 67th percentile and 20% of the 
CSP proportion of performance shares vested and 80% forfeited for tranche 2a. For Year Ended 30 June 2015 
the TSR Rank achieved was determined to be below the 50th percentile with no CSP proportion of performance 
shares vesting and 100% forfeited for tranche 3a. The vested performance rights were exercised and shares 
issued on 11 July 2016.

*  The KPI Performance rights conditions were assessed by the disinterested board members for Years Ended 

30 June 2014 and 30 June 2015 and determined to that 80% of KPI proportion of performance shares for tranches 
2b and 3b vesting and 20% forfeited. The vested performance rights were exercised and shares issued on 
11 July 2016.

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g)	Equity	instruments	held	by	key	management	personnel

Options holdings 
Listed options are held directly, indirectly or beneficially by key management personnel* as at year ended 
30 June 2016:

2016 

Name 

Listed options 
Balance at 
at the start  acquired during the 
reporting year 
of the year 

Eercised 
during the 
reporting year 

Expired 
during 
the year 

Balance 
at the end 
of the year 

Vested and  
exercisable at 
the end of the 
reporting year 

number 

number# 

number 

number 

number 

number

Directors of the Company 
David Christensen  
Geoffrey McConachy 
Andrew Martin 
Stephen Bizzell 
Chris Anderson 
Richard Keevers 

250,000 
375,000 
625,000 
500,000 
1,000,000 
- 

Other key management personnel of the Group 

Angelo Gaudio 

250,000 

- 
- 
- 
- 
- 
- 

- 

- 
- 
- 
- 
- 
- 

- 

- 
- 
- 
- 
- 
- 

- 

250,000 
375,000 
625,000 
500,000 
1,000,000 
- 

250,000 
375,000 
625,000 
500,000 
1,000,000 
-

250,000 

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.

Performance holdings 
Details of performance rights held directly, indirectly or beneficially by key management personnel* as at 
year ended 30 June 2016:

Approved to be 
granted during the 
reporting year  

Exercised 
during the 
as compensation  reporting year 

Lapsed  Balance at 

Vested 
the end of  at the end 

during the 
reporting year 

the year  of the yesr  reporting period 

Vested and  
Vested and 
exercisable at 
not exercisable 
 the end of the  at the end of the 
reporting period 

number  

number 

number 

number 

number 

number 

number

2016 

Name 

Balance at 
the start  
of the year 

number  

Directors of the Company 
David 
Christensen 

280,000 

Geoffrey 
McConachy 

Andrew Martin 
Stephen Bizzell 
Chris Anderson 

270,000 

- 
- 
- 

Other key management personnel of the Group

Angelo Gaudio 

116,667 

666,667 

- 

- 

- 
- 
- 

- 

- 

- 

- 

- 
- 
- 

- 

- 

28,000 

252,000 

252,000 

252,000 

27,000 

243,000 

243,000 

243,000 

- 
- 
- 

- 
- 
- 

- 
- 
- 

- 
- 
- 

11,666 

105,001 

105,001 

105,001 

66,666 

600,001 

600,001 

600,001 

-

-

- 
- 
-

-

-

*   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.

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g)	Equity	instruments	held	by	key	management	personnel	 conitinued

Shareholdings 
Details of equity instruments (other than options and rights) held directly, indirectly or beneficially by key 
management personnel* as at year ended 30 June 2016 are as follows:

2016 

Ordinary Shares - 
Balance 
at the start 
of the year 

Issued during 
reporting year as 

Recieved during 
the year on the 
exercise of 
compensation 2  Performance Rights 

  Ordinary Shares -   

Other 
changes 
during the year 

Balance 
at the end 
of the year 

Directors of the Company 
Ordinary Shares 
David Christensen 
Geoffrey McConachy 
Andrew Martin1 
Stephen Bizzell 
Chris Anderson 
Richard Keevers 

12,700,000 
7,050,000 
22,182,929 
13,007,583 
9,257,166 
- 

Other key management personnel of the Group

- 
- 
985,392 
1,478,085 
812,947 
- 

Ordinary shares 
Angelo Gaudio 

6,715,000 

- 

- 
- 
- 
- 
- 
- 

- 

- 
- 
- 
- 
- 
- 

- 

12,700,000 
7,050,000 
23,168,321 
14,485,668 
10,070,113 
-

6,715,000

1   Mr Martin is a non-executive director and is a director of SLRI Pty Ltd and St Lucia Capital Fund Pty Ltd, which act as 

corporate trustees for trust funds which together are substantial (greater than 5%) shareholders in the Company. Mr Martin 

is a beneficiary of a trust ultimately holding a more than 20% interest in these trust funds.

*   Key management personnel include close family members and entities over which the key management person or their close 

family members have direct or indirect control, joint control or significant influence.

2   Shares issued as part of Non-executive directors Plan (NEDSP) in lieu of payment of 50% of director fees for the period from 

1st April 2015 through 31 March 2016 and as approved by shareholders at Annual General Meeting held on 

26 November 2015.

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 $54,134 (2015: 
$77,978) from Euro which has been capitalised as 
Exploration Expenditure during the financial year. 
An amount of $5,235 (2015: $13,736) was owing to 
Euro at 30 June 2016.

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 $72,600 (2015: $51,150) 
from CGAA of which $72,600 (2015: $51,150) 

has been capitalised as Exploration Expenditure 
during the financial year. An amount of $11,300 
(2015: $8,910) was owing to CGAA at 30 June 2016.

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 $72,600 (2015: $15,000) from BCP which was 
included as a cost of the capital raising during the 
financial year. An amount of $Nil (2015: $Nil) was 
owing to BCP for capital raising services at 
30 June 2016.

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 $6,770 (2015: 
$9,690) from Arion Legal of which $6,770 was 
included as a legal expense during the financial 
year. An amount of $Nil (2015: $Nil) was owing to 
Arion Legal at 30 June 2016.

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Mr R Keevers is a director and also has an equity 
interest in Eyre Peninsula Minerals Pty Ltd (EPM). 
The Company has an agreement with EPM and 
EPM’s shareholders that grants the Company 
the option to acquire up to 100% of EPM in 
exchange for exploration expenditure and shares 
and options in Renascor. The Company has 
acquired 49% of EPM by meeting its exploration 
expenditure requirements and issued shares 
to EPM shareholders on 11 July 2016 (See note 

26, in the notes to the consolidated financial 
statements. for details). Mr Keevers received 
20,195,334 shares in connection with the shares 
issued to EPM shareholders. On 29 August 2016, 
the Company notified EPM of its intention to 
exercise its remaining option to acquire the 
balance of the issued capital of EPM, and it is 
expected that this will be completed during the 
fourth quarter of 2016.

End of remuneration report - audited

Shares under option

Unissued ordinary shares of the Company under option at the date of this report are as follows:

Date options granted 

Expiry date 

9 June 2015 (listed options) 
18 June 2015 (listed options) 
9 July 2015 (listed options) 
26 February 2016 (listed options) 
13 May 2016 (listed options) 
9 July 2016 (listed options) 

30 September 2016 
30 September 2016 
30 September 2016 
30 September 2016 
30 September 2016 
30 September 2016 

Exrecise price 
of shares 

Number under 
option

$0.03 
$0.03 
$0.03 
$0.03 
$0.03 
$0.03 

12,500,000 
15,750,000 
10,475,310 
4,000,000 
11,850,003 
9,816,668

64,391,981

Date Performance Rights 
approved 

Expiry date 

Exrecise price 
of shares 

30 November 2012* 

30 November 2019 

28 February 2014* 

30 November 2019 

$Nil 

$Nil 

Number of 
Performance Rights 
held

Nil

Nil

Nil

*  No performance rights were granted as remuneration to the directors and the most highly remunerated officers 

during the year. Details of performance rights held by key management personnel are disclosed on page 37.

600,001 shares of the Company were issued on 11 July 2016 on the exercise of vested performance rights 
and 32,000 shares of the Company were issued on 25 August 2016 on the exercise of listed options 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.

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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

Notes 

30 June 2016 
$ 

30 June 2015 
$

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 

Total fees for non-audit services 

7,076 

7,076 

7,076 

6,929

6,929

6,929

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 
is available on the Company’s website 
www.renascor.com.au/company.

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 40.

This report is made in accordance with a 
resolution of directors. 

David Christensen 
Director

Adelaide Date: 30 September 2016

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Auditor’s independence declaration 

Annual Report 2016 RENASCOR RESOURCES LIMITED |    16 

Auditor’s independence declaration 

(to be inserted) 

Tel: +61 8 7324 6000 
Fax: +61 8 7324 6111 
www.bdo.com.au 

BDO Centre  
Level 7, 420 King William Street  
Adelaide SA 5000 
GPO Box 2018 Adelaide SA 5001 
Australia 

DECLARATION OF INDEPENDENCE  

BY MICHAEL HAYDON  

TO THE DIRECTORS OF RENASCOR RESOURCES LIMITED 

As lead auditor of Renascor Resources Limited for the year ended 30 June 2016, I declare that, 
to the best of my knowledge and belief, there have been: 

 

 

No contraventions of the auditor independence requirements of the Corporations Act 2001 
in relation to the audit; and 

No contraventions of any applicable code of professional conduct in relation to the audit. 

This declaration is in respect of Renascor Resources Limited and the entities it controlled during 
the period. 

Michael Haydon 
Director 

BDO Audit (SA) Pty Ltd 

Adelaide, 29 September 2016  

BDO Audit (SA) Pty Ltd ABN 33 161 379 086 is a member of a national association of independent entities which are all members of BDO Australia Ltd ABN 77 
050 110 275, an Australian company limited by guarantee. BDO Audit (SA) Pty Ltd and BDO Australia Ltd are members of BDO International Ltd, a UK 
company limited by guarantee, and form part of the international BDO network of independent member firms. Liability limited by a scheme approved under 
Professional Standards Legislation (other than for the acts or omissions of financial services licensees). 

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Renascor Resources Limited ABN 90 135 531 341 annual report 2016

Consolidated statement of profit or loss and 
other comprehensive income

For	the	year	ended	30	June	2016

Revenue 

Other Income 
Administration and consulting 
  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 2016 
$ 

30 June 2015 
$

27,996 

26,317

12,000 
(129,559) 
(4,158) 
(427,155) 
(10,288) 
(30,596) 
(265,602) 
(62,717) 

41,556 
(121,304) 
(7,296) 
(500,131) 
300 
(30,225) 
(4,266,131) 
(75,512)

(890,079) 

(4,932,426)

- 
(890,079) 

- 
(4,932,426)

- 

-

Total comprehensive income for the year 

(890,079) 

(4,932,426)

Loss is attributable to: 
Owners of Renascor Resources Limited 

Total comprehensive income for the year is attributable to: 
Owners of Renascor Resources Limited 

Non-controlling interest 

(890,079) 

(4,932,426)

(890,079) 

(4,932,426)

- 

-

(890,079) 

(4,932,426)

Cents 

Cents

Earnings per share for loss attributable to the ordinary 
owners of the Parent Entity: 
Basic earnings per share 
Diluted earnings per share 

29 
29 

(0.4) 
(0.4) 

(3.5) 
(3.5)

The above consolidated statement of profit or loss and other comprehensive income should be read in 
conjunction with the accompanying notes.

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Renascor Resources Limited ABN 90 135 531 341 annual report 2016

Consolidated statement of financial position

As	at	30	June	2016

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 

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Consolidated

Notes 

30 June 2016 
$ 

30 June 2015 
$

8 
9 

862,488 
154,720 
15,887 

1,075,336 
224,803 
23,355

1,033,095 

1,323,494

10 
11 

7,287 
5,977,606 

9,596 
3,534,046

5,984,893 

3,543,642

7,017,988 

4,867,136

13 
14 

15 

345,763 
132,007 

242,337 
154,979

477,770 

397,316

70,750 

70,750 

57,630

57,630

548,520 

454,946

6,469,468 

4,412,190

17 
18(a) 
18(b) 

13,235,479 
1,041,506 
(9,407,517) 

11,903,316 
1,026,312 
(8,517,438)

Equity and reserves attributable the owners of 
Renascor Resources Limited 

4,869,468 

4,412,190

Non-controlling interests 

26 

1,600,000 

-

Total equity 

6,469,468 

4,412,190

The above consolidated statement of profit or loss and other comprehensive income should be read in 
conjunction with the accompanying notes.

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Renascor Resources Limited ABN 90 135 531 341 annual report 2016

Consolidated statement of changes in equity

For	the	year	ended	30	June	2016

Consolidated 

  Share-based 
Payments 

  Contributed 
equity 

Notes 

$ 

Reserve 

$ 

Accumulated 

Losses 

$ 

Balance at 1 July 2014 

  10,803,970 

1,018,436 

(3,585,012) 

8,237,394 

Loss for the year 

Total comprehensive income 

Transactions with owners 

in their capacity as owners:

Contributions of equity 

- 

- 

net of transaction costs 

17(b) 

1,099,346 

Share-based payments 

18(a) 

- 

1,099,346 

- 

- 

- 

7,876 

7,876 

(4,932,426) 

(4,932,426) 

(4,932,426) 

(4,932,426) 

- 

- 

- 

1,099,346 

7,876 

1,107,222 

Non- 

Total 

controlling 

$ 

Total 

equity 

$

8,237,394

(4,932,426)

(4,932,426)

1,099,346

7,876

1,107,222

$ 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Balance at 30 June 2015

Balance at 1 July 2015

Loss for the year 

Total comprehensive income 

Transactions with owners 

in their capacity as owners:

Contributions of equity, 

  11,903,316 

1,026,312 

(8,517,438) 

4,412,190 

- 

4,412,190

  11,903,316 

1,026,312 

(8,517,438) 

4,412,190 

- 

- 

(890,079) 

(890,079) 

(890,079) 

(890,079) 

- 

- 

- 

4,412,190

(890,079)

(890,079)

net of transaction costs 

17(b) 

1,332,163 

Recognition of non-controlling 

interest of Eyre Peninsula 

Minerals Pty Ltd 

26 

- 

Amount recognised during 

the current period for 

Share-based payments 

18(a) 

 - 

15,194 

1,332,163 

15,194 

- 

1,332,163 

- 

1,332,163

- 

- 

- 

- 

1,600,000 

1,600,000

15,194 

- 

15,194

1,347,357 

1,600,000 

2,947,357

Balance at 30 June 2016 

  13,235,479 

1,041,506 

(9,407,517) 

4,869,468 

1,600,000 

6,469,468

The above consolidated statement of profit or loss and other comprehensive income should be read in 
conjunction with the accompanying notes.

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Consolidated statement of cash flows

For	the	year	ended	30	June	2016

Consolidated

Notes 

30 June 2016 
$ 

30 June 2015 
$

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) 

74,463 
(631,200) 
28,733 
192,942 
10,000 

94,433 
(697,114) 
26,077 
118,627 
15,000

Net cash inflow (outflow) from operating activities 

28 

(325,062) 

(442,977)

Cash flows from investing activities 
Cash held in subsidiary on acquisition 
Payments for property, plant and equipment 
Proceeds from sale of tenement 
Payments for exploration expenditure 

46,876 
- 
- 
(931,935) 

- 
(3,433) 
62,500 
(1,047,063)

Net cash inflow (outflow) from investing activities 

(885,059) 

(987,996)

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 

-  
- 
(138,429) 
1,135,702 

- 
- 
(48,669) 
1,130,000

Net cash inflow (outflow) from financing activities 

997,273 

1,081,331

Net increase / (decrease) in cash and cash equivalents 
Cash and cash equivalents at the beginning of the financial period 

(212,848) 
1,075,336 

(349,642) 
1,424,978

Cash and cash equivalents at end of year 

8 

862,488 

1,075,336

The above consolidated statement of profit or loss and other comprehensive income should be read in 
conjunction with the accompanying notes.

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Notes	to	the	consolidated	financial	statements

Note  Contents 

Page

1   Summary of significant accounting policies  

2 

Financial risk management  

3   Critical accounting estimates and judgments  

4   Segment information  

5   Revenue  

6   Expenses  

7  

Income tax expense  

8   Current assets - Cash and cash equivalents  

9   Current assets - Trade and other receivables  

  10  Non-current assets - Property, plant and equipment 

  11  Non-current assets - Exploration and evaluation, development and mine properties  

  12  Non-current assets - Deferred tax assets  

  13  Current liabilities - Trade and other payables  

  14  Current liabilities - Provisions  

  15  Non-current liabilities - Provisions  

  16  Non-current liabilities - Deferred tax liabilities  

  17  Contributed equity  

  18  Reserves and retained earnings 

  19  Dividends  

  20  Key management personnel disclosures 

  21  Remuneration of auditors  

  22  Commitments and contingent liabilities  

  23  Related party transactions  

  24  Subsidiaries  

  25 

Interests in joint ventures  

  26  Business Combinations  

  27  Events occurring after the reporting period  

  28  Reconciliation of profit after income tax to net cash outflow from operating activities  

  29  Earnings per share  

  30  Share-based payments 

  31  Parent Entity financial information  

  32  Application of new and revised Accounting Standards 

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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 $5,977,606 (30 June 
2015: $3,534,046).

   The Group has incurred a loss after tax for 
the year of $890,079 (2015: $4,932,426) and 
operations were funded by a net cash outflow 
of $212,848 (2015: $349,642). At 30 June 2016, 
the Group had net current assets of $555,325 
(30 June 2015: $926,178).

   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.

On 11 July 2016, the Company completed the 
fundraising initiated in May 2016 and raised a 
further $589,000 before costs. On 5 September 
the Company announced that it had executed 
an underwriting agreement that provides the 
confidence that it will receive total gross proceeds 
of $1.9m from its listed 3 cent options expiring on 
30 September 2016. The funds raised will primarily 
be used to fund the advancement of its Arno 
graphite project and, in the opinion of the directors, 
removes any significant uncertainty about the 
Company’s ability to continue as a going concern 
for at least the next 12 months from the date of 
authorising the financial report for issue and into 
the foreseeable future.

  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 2016 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.

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  1   Summary of significant accounting policies 

  d)  Revenue recognition

continued

  b)  Principles of consolidation continued

	 ii)	Joint		arrangements

   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). 

  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.

   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.

  c)  Foreign currency translation

	 i)	Functional	and	presentation	currency

   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.

  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.

  ii) Transactions and balances

  f)  Trade receivables

   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.

   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.

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h)    Business combinations

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.

   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.

49

 
 
 
 
 
 
 
 
 
 
Renascor Resources Limited ABN 90 135 531 341 annual report 2016

s
e
t
o
N

Notes	to	the	consolidated	financial	statements

  1   Summary of significant accounting policies 

continued

  h)  Business combinations continued

  i) Impairment of assets

   Goodwill and intangible assets that have 
an indefinite useful life are not subject to 
amortisation and are tested annually for 
impairment or more frequently if events 
or changes in circumstances indicate that 
they might be impaired. Other assets that 
are subject to amortisation are reviewed for 
impairment whenever events or changes 
in circumstances indicate that the carrying 
amount may not be recoverable. An 
impairment loss is recognised for the amount 
by which the asset’s carrying amount exceeds 
its recoverable amount. The recoverable 
amount is the higher of an asset’s fair value less 
costs to sell and value in use. For the purposes 
of assessing impairment, assets are grouped at 
the lowest levels for which there are separately 
identifiable cash flows (cash generating units).

   Non-financial assets other than goodwill that 
have previously been impaired are reviewed 
for possible reversal of impairment at each 
reporting date.

  j)  Property, plant and equipment

   All plant and equipment is stated at historical 
cost less depreciation.  Historical cost includes 
expenditure that is directly attributable to the 
acquisition of the items.

   The cost of an item of plant and equipment 
also includes the initial estimate of the costs 
of dismantling and removing the item and 
restoring the site on which it is located.

   Subsequent costs are included in the asset’s 
carrying amount or recognised as a separate 
asset, as appropriate, only when it is probable 
that future economic benefits associated with 
the item will flow to the Group and the cost 
of the item can be measured reliably.  The 
carrying amount of any component accounted 
for as a separate asset is derecognised when 
replaced.  All other repairs and maintenance 
are charged to profit or loss during the 
reporting period in which they are incurred.

   Depreciation on plant and equipment 
(excluding land) is calculated on a straight line 
basis over the estimated useful life of the asset.

   The expected useful lives in the current and 
comparative periods are as follows:

   - Plant and equipment  

3 – 10 years 

50

   The assets’ residual values and useful lives are 
reviewed, and adjusted if appropriate, at the 
end of each reporting period.

   An asset’s carrying amount is written down 
immediately to its recoverable amount if the 
asset’s carrying amount is greater than its 
estimated recoverable amount (note 1(i)).

   Gains and losses on disposals are determined 
by comparing proceeds with carrying amount.  
These are included in the income statement. 

  k)  Exploration and evaluation expenditure

   Exploration and evaluation expenditure is 
carried forward in the financial statements, in 
respect of areas of interest for which the rights 
of tenure are current and where:

   i)   such costs are expected to be recouped 
through successful development and 
exploitation of the area of interest, or 
alternatively, by its sale; or

   ii)  exploration and/or evaluation activities in the 
area of interest have not yet reached a stage 
which permits a reasonable assessment of 
the existence or otherwise of economically 
recoverable reserves and while active and 
significant operations in, or in relation to, the 
area are continuing.

   Exploration expenditure incurred that does not 
satisfy the policy stated above is expensed in 
the period in which it is incurred.  Exploration 
expenditure that has been capitalised which 
no longer satisfies the policy stated above 
is written off in the period in which any 
capitalised exploration expenditure no longer 
satisfies that policy.

   The net carrying value of each area of interest 
is reviewed regularly and, to the extent to 
which this value exceeds its recoverable value, 
that excess is provided for or written off in the 
year in which this is determined.

  l)  Trade and other payables

   These amounts represent liabilities for goods 
and services provided to the Group prior to the 
end of financial year which are unpaid.  The 
amounts are unsecured and are usually paid 
within 30 days of recognition.  Trade and other 
payables are presented as current liabilities 
unless an unconditional right exists to defer 
payment 12 months from the reporting date.  
They are recognised initially at their fair value 
and subsequently measured at amortised cost 
using the effective interest method.

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Renascor Resources Limited ABN 90 135 531 341 annual report 2016

Notes	to	the	consolidated	financial	statements

  1   Summary of significant accounting policies 

continued

 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.

  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.

s
e
t
o
N

   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 30.

   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.

51

 
 
 
 
 
 
 
 
	
 
 
 
 
 
 
 
   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 
31 has been prepared on the same basis as the 
consolidated financial statements, except as set 
out below.

  i) Investments in subsidiaries 

   Investments in subsidiaries are accounted for 
at cost, less any impairment, in the financial 
statements of the Parent Entity.

  t)  R&D Tax Incentives

   R&D tax incentives are considered more akin 
to government grants because they are not 
conditional upon earning taxable income and 
the group accounts for any R&D Tax incentives 
received as government grants under AASB 
120 Accounting for Government Grants and 
Disclosure of Government Assistance.

Renascor Resources Limited ABN 90 135 531 341 annual report 2016

s
e
t
o
N

Notes	to	the	consolidated	financial	statements

  1   Summary of significant accounting policies 

continued

  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.

  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 29).

  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.

52

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Renascor Resources Limited ABN 90 135 531 341 annual report 2016

Notes	to	the	consolidated	financial	statements

s
e
t
o
N

  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 2016 
$ 

30 June 2015 
$

      862,488  
      154,720  

    1,075,336  
      224,803 

    1,017,208  

    1,300,139 

345,763 

345,763 

242,337

242,337

  a)  Market risk

	 i)	Cash	flow	and	fair	value	interest	rate	risk

   As at 30 June 2016 and 30 June 2015, 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 2016 

30 June 2015

Weighted  
average 
interest rate 
% 

1.8 % 
- % 
- % 

Weighted 
average 
interest rate  
% 

3.08 % 
- % 
- % 

Balance 
$ 

862,488 
154,720 
(345,763) 

671,445 

Balance 
$

1,075,336 
224,803 
(242,337)

1,057,802

  Cash and cash equivalents 
  Trade and other receivables 
  Trade and other payables 

  Net exposure to cash flow  
  interest rate risk 

53

 
 
 
 
 
 
 
 
 
   
 
 
   
 
 
   
 
   
 
 
 
 
 
 
 
 
 
   
 
 
 
 
 
 
 
 
   
 
 
	
 
 
 
 
 
 
 
 
 
Renascor Resources Limited ABN 90 135 531 341 annual report 2016

s
e
t
o
N

Notes	to	the	consolidated	financial	statements

  2  Financial risk management continued
  a)  Market risk continued

  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 

Interest rate risk

1.0% 

+ 1.0%

Carrying amount 
$ 

Profit 
$ 

Other equity 
$ 

Profit 
$ 

Other equity 
$

  30 June 2016 

  Financial assets

  Cash and cash equivalents 
  Trade and other receivables 

862,488 
154,720 

(8,625) 
- 

  Financial liabilities 

  Trade and other payables 

  (345,763) 

- 

  Total increase/(decrease) 

   671,445     

(8,625) 

- 
- 

- 

- 

8,625 
- 

- 

8,625 

- 
-

-

-

  Consolidated 

Interest rate risk

1.0% 

+ 1.0%

Carrying amount 
$ 

Profit 
$ 

Other equity 
$ 

Profit 
$ 

Other equity 
$

  30 June 2015 

  Financial assets

  Cash and cash equivalents 
  Trade and other receivables 

   1,075,336 
     224,803 

(10,753) 
- 

  Financial liabilities 

  Trade and other payables 

    (242,337)  

- 

  Total increase/(decrease) 

    1,057,802  

(10,753) 

- 
- 

- 

- 

10,753 
- 

- 

10,753  

- 
-

-

-

54

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
    
 
 
  
    
 
 
Renascor Resources Limited ABN 90 135 531 341 annual report 2016

Notes	to	the	consolidated	financial	statements

s
e
t
o
N

  2  Financial risk management continued

  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 

  c)  Liquidity risk

Consolidated

30 June 2016 
$ 

30 June 2015 
$

154,720 

154,720 

862,488 

862,488 

224,803

224,803

1,075,336

1,075,336

   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 $862,488 (2015: $1,075,336) 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.

  Group 

Less than  

6 – 12 

6 months 

months 

Less 

than 

1 year 

Between 

Over 

Total 

1 and 5 

years 

5 years 

contractual  

cash flows 

Carrying 

Amount 

(assets)/ 

liabilities

   At 30 June 2016 

$ 

  Trade payables 

(345,763) 

(345,763) 

$ 

- 

- 

$ 

- 

- 

$ 

- 

- 

$ 

- 

- 

$ 

$

(345,763) 

(345,763)

(345,763)  

(345,763)

  Total 

  Group 

Less than  

6 months 

6 – 12 

months 

Less 

than 

1 year 

Between 

1 and 5 

years 

Over 

Total 

5 years 

contractual  

cash flows 

Carrying 

Amount 

(assets)/ 

liabilities

   At 30 June 2015 

$ 

  Trade payables  

(242,337) 

  Total 

(242,337) 

$ 

- 

- 

$ 

- 

- 

$ 

- 

- 

$ 

- 

- 

$ 

$

(242,337) 

(242,337)

(242,337) 

(242,337)

55

 
 
 
   
 
 
   
 
 
 
 
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   
 
 
   
 
 
 
 
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
 
	
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Renascor Resources Limited ABN 90 135 531 341 annual report 2016

s
e
t
o
N

Notes	to	the	consolidated	financial	statements

  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.

  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 30.

  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.

56

 
 
 
 
 
 
 
 
 
 
 
 
 
Renascor Resources Limited ABN 90 135 531 341 annual report 2016

Notes	to	the	consolidated	financial	statements

s
e
t
o
N

  5  Revenue and Other Income

  a)  Revenue 

  Interest income 

  b)  Other Income 

  Sundry Income 
  Profit on sale of tenement 

  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 2016 
$ 

30 June 2015 
$

27,996 

26,317

 12,000 

             -  

    -    

        41,556

    12,000   

        41,556

Consolidated

30 June 2016 
$ 

30 June 2015 
$

771 
3,387 

4,158 

768 
6,528

7,296

- 
265,602  

- 
4,266,131

265,602  

4,266,131 

- 

- 

- 

373,431  
- 
53,724 

427,155 

- 

-

-

427,555  
7,876 
64,700

500,131

  Minimum office lease payments 

30,596 

30,225

57

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
        
 
 
        
 
 
     
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   
 
 
 
 
 
 
Renascor Resources Limited ABN 90 135 531 341 annual report 2016

s
e
t
o
N

Notes	to	the	consolidated	financial	statements

  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 2016 
$ 

30 June 2015 
$

- 
- 

- 

- 
-

-

240,978 
(240,978) 

- 

(849,055) 
849,055

-

  b)   Numerical reconciliation of income tax expense to  

prima facie tax payable

  Profit/(Loss) from continuing operations before income tax expense 

(890,079) 

(4,932,426)

  Tax at the Australian tax rate of 30% (2015: 30%) 

(267,024) 

(1,479,728)

   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 

  Unused tax losses for which no deferred tax asset has  
  been recognised 

  Potential tax benefit @ 30% 

  d)  Unrecognised temporary differences 

   Temporary differences for which deferred tax assets have not  
been recognised: 
    Temporary differences 

  Potential tax benefit @ 30% 

- 
(36,407) 

53 
- 
- 

- 
(57,283

12 
2,363 
-

   303,377 
- 

1,534,636 
-

267,024 

1,479,728

- 

-

8,780,729 

7,944,562

2,634,219 

2,383,369

-  

- 

-

-

58

 
 
 
 
 
 
 
 
 
 
 
 
 
 
   
 
 
 
 
 
 
 
 
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Renascor Resources Limited ABN 90 135 531 341 annual report 2016

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

s
e
t
o
N

Consolidated

30 June 2016 
$ 

30 June 2015 
$

862,488 

1,075,336

  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 

  a)  Fair value risk

Consolidated

30 June 2016 
$ 

30 June 2015 
$

33,064 

121,356 

300 

154,720 

16,998

190,942

16,863

224,803

   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.

   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.

 10  Non-current assets – Property, plant and equipment

  Consolidated 

  Gross carrying amount 

  Balance at 30 June 2014 
  Additions 
  Depreciation charge 

  Balance at 30 June 2015 

  Additions 
  Depreciation charge 

  Balance at 30 June 2016 

Computer  Office furniture 
equipment  and equipment 
$ 

$ 

       10,849 
        3,433 
       (6,527) 

       7,755 

  1,849 
       (3,387) 

        6,217  

2,610 
             -   
(769)  

1,841  

             -   
(771) 

1,070  

Total 
$

 13,459 
         3,433 
(7,296)

9,596

         1,849   
   (4,158) 

7,287

59

 
 
 
 
 
 
 
 
 
 
 
 
 
 
   
 
 
 
 
 
 
 
 
 
 
 
 
   
 
 
 
 
 
   
 
   
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
Renascor Resources Limited ABN 90 135 531 341 annual report 2016

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Notes	to	the	consolidated	financial	statements

 10  Non-current assets – Property, plant and equipment continued

  Computer Equipment 

  Cost 
  Accumulated depreciation 

  Net book amount 

  Plant and Equipment 

  Cost 
  Accumulated depreciation 

  Net book amount 

 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 acquisition/(sale) component of exploration and evaluation 

  Expenditure incurred 

  Closing balance 

Consolidated

30 June 2016 
$ 

30 June 2015 
$

36,831 
(30,614)  

6,217  

34,982 
(27,227) 

7,755 

  4,444 
        (3,374)  

4,444 
       (2,603) 

         1,070   

         1,841

Consolidated

30 June 2016 
$ 

30 June 2015 
$

3,534,046 
2,238,605 
(265,603) 
(121,356) 

           -    

6,942,371 
- 
(4,266,131) 
(190,942) 
(20,944)

591,913 

1,069,692

5,977,605 

3,534,046

  #   Note: Refundable tax incentives (Research and development tax concession) are 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.

  *  Note: Acquisitions through business combinations include: 
  1)    Eyre Peninsula Minerals Pty Ltd through business combinations includes $232,160 on acquisition plus recognition of $1,767,352  

fair value adjustment on consolidation. 

  2)  Sol Jar Property Pty Ltd - asset acquisition includes $239,043 on acquisition.

   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 $461,623 of internal personnel costs (2015: $590,450) and 
management fees for joint venture tenements of $45,931 (2015: $1,678) 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.

60

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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Renascor Resources Limited ABN 90 135 531 341 annual report 2016

Notes	to	the	consolidated	financial	statements

 12  Non-current assets – Deferred tax assets

  The balance comprises temporary differences attributable to: 

  Deductible temporary differences 

  - Accruals and other payables 
  - Employee benefits 
  - Expenses deductible over 5 years 
  - Investment in Subsidiary 
  Tax losses 

  Total deferred tax assets 

Consolidated

30 June 2016 
$ 

30 June 2015 
$

  8,027 
  60,827 
 66,553 
 179,970 
    855,532  

  1,170,909  

6,917 
63,783   
58,917      
        -        

620,345 

929,932 

  Set off of deferred tax liabilities pursuant to set off provisions (note 16) 

 (1,170,909) 

  (929,932) 

  Net deferred tax assets 

  Movements: 
  Opening balance at 1 July 
  Credited to profit or loss 

  Closing balance at 30 June 

 13  Current liabilities  – Trade and other payables

  Trade payables 

  Sundry creditor and accrued expenses 

  Other payables 

 14  Current liabilities – Provisions

  Employee benefits 

       -     

       -    

929,932 
240,978 

1,778,987 
(849,055)

1,170,909 

929,932

Consolidated

30 June 2016 
$ 

30 June 2015 
$

168,819 

176,944 

-    

345,763 

42,759

199,578

           - 

242,337

Consolidated

30 June 2016 
$ 

30 June 2015 
$

132,007 

154,979

  Provision for employee benefits is made for annual leave owed as at 30 June 2016.

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Renascor Resources Limited ABN 90 135 531 341 annual report 2016

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Notes	to	the	consolidated	financial	statements

 15  Non-current liabilities – Provisions

  Employee benefits 

Consolidated

30 June 2016 
$ 

30 June 2015 
$

70,750  

57,630

   Provision for employee benefits is made for long service leave as at 30 June 2016

 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 2016 
$ 

30 June 2015 
$

    -     

1,170,910  

         221 
     929,711 

  1,170,910  

     929,932 

  Set off of deferred tax liabilities pursuant to set off provisions (note 12) 

   (1.170,910)  

    (929,932) 

  Net deferred tax liabilities 

  Movements: 
  Opening balance at 1 July 
  Charged to profit or loss 

  Closing balance at 30 June 

 17  Contributed equity

  a)  Share capital 

  Ordinary shares            (b),(c) 
  Fully paid 

     -            

-

     929,932  
    (240,978) 

    1,778,987 
(849,055)

    1,170,910  

     929,932 

30 June 2016 
Shares 

30 June 2015 
Shares 

30 June 2016 
$ 

30 June 2015 
$

 284,466,527 

194,839,488 

13,235,479  

  11,903,316 

62

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      
 
 
     
 
 
 
   
 
 
      
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Renascor Resources Limited ABN 90 135 531 341 annual report 2016

Notes	to	the	consolidated	financial	statements

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 17  Contributed equity continued

  b)  Movements in ordinary share capital:

  Date 

Details 

Notes 

Number  
of shares 

Issued 
price 

$

1 July 2014  Opening balance 

  136,400,000 

10,803,970

3 Sep 2014  Ordinary shares issued to Currie 

Resources Pty Ltd – consideration 
pursuant to Currie Agreement 

7 May 2015  Ordinary shares issued to 

non-executive directors pursuant 
to Non-Executive Directors Share Plan. 

9 Jun 2015 

Placement to Acorn Capital - 
Ordinary shares issued. 

18 Jun 2015 

Institutional component of accelerated 
non-renounceable entitlement offer– 
Ordinary shares issued. 

500,000 

$0.044 

22,000

1,439,488 

$33,250 

33,250

25,000,000 

$0.02 

500,000

 Less: Transaction costs arising on share 
issues, net of tax 

30 June 2015 Balance 

194,839,488 

31,500,000 

58,439,488 

$ 0.02 

630,000

1,185,250

(85,904)

11,903,316

9 Jul 2015 

 Retail component of accelerated 
non-renounceable entitlement offer – 
Ordinary shares issued. 

14 Oct 2015 

 Ordinary shares issued to non-executive  
directors pursuant to Non-Executive 
Directors Share Plan. 

26 Feb 2016 

 Consideration on acquisition of Sol Jar 
Property Pty Ltd – Ordinary shares issued. 

11 Apr 2016 

 Ordinary shares issued to non-executive 
directors pursuant to Non-Executive 
Directors Share Plan. 

13 May 2016   Placement to Sophisticated Investors - 
Ordinary shares issued. 

20,950,612 

$0.02 

419,012

935,510 

$0.018 

16,752

18,000,000 

$ 0.013 

234,000

2,340,914 

$0.021 

49,748

47,400,003 

89,627,039 

$0.015 

711,000

1,430,512

(98,349)

13,235,479

 Less: Transaction costs arising on share 
issues, net of tax 

30 June 2015 Balance 

284,466,527 

  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.

63

 
   
 
 
 
 
 
   
 
 
   
 
   
 
 
   
 
   
 
 
   
 
 
   
 
   
 
 
   
 
 
 
 
   
 
 
 
 
 
 
 
 
 
 
 
   
 
 
 
 
   
 
 
 
 
 
 
 
 
Renascor Resources Limited ABN 90 135 531 341 annual report 2016

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Notes	to	the	consolidated	financial	statements

 17  Contributed equity continued

  d)  Listed options

Consolidated

30 June 2016 
$ 

30 June 2015 
$

  Balance at 30 June 2015 

  Issued 9 July 2015 pursuant to a Placement 

  Issued 9 July 2015 pursuant to Rights Issue 

  Issued 26 Feb 2016 as part consideration for the acquisition of 
  Sol Jar Property Pty Ltd.  

  Issued on 13 May 2015 pursuant to a Placement.  

  Balance at 30 June 2016  

 -  

12,500,000  

26,225,310  

4,000,000  

11,850,003 

54,575,313 

-

-

-

-

-

 -

   The options are listed on the ASX, have an exercise price of $0.03 per share and an expiry date of 
30 September 2016.

  e)  Unlisted 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 30.

  f)  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.

 18  Reserves and accumulated losses

  a)  Reserves 

  Share based payments 

  Movements: 
  Share-based payments 
  Balance 1 July 
  Listed options issued 
  Performance rights granted 

  Balance 30 June 

  Options and performance rights granted arise from:

  Amount recognised during the period for Listed Options issued 
  to the vendors as part of the consideration on the acquisition of 
  Sol Jar Property Pty Ltd (refer note 24) 

  Amount recognised during the period for Performance Rights/Share 
  Options previously issued to directors and executives 
  (refer note 30(a)) 

64

Consolidated

30 June 2016 
$ 

30 June 2015 
$

1,041,506 

1,026,312 

1,026,312 
        15,194 
         -  

1,018,436 

            -    
7,876

1,041,506 

1,026,312

 15,194 

             -   

            -  

15,194 

7,876

7,876 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
     
 
 
 
 
 
 
 
 
        
 
 
 
 
 
 
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Renascor Resources Limited ABN 90 135 531 341 annual report 2016

Notes	to	the	consolidated	financial	statements

 18  Reserves and accumulated losses continued

  b)  Accumulated losses

  Movements in accumulated losses were as follows:

  Balance 1 July 
  Net loss for the year 

  Balance 30 June 

  c)  Nature and purpose of reserves

  i) Share-based payments

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Consolidated

30 June 2016 
$ 

30 June 2015 
$

8,517,438 
890,079 

3,585,012 
4,932,426

9,407,517 

8,517,438

  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 2016 period.

  Franking credits available for subsequent financial years 
  based on a tax rate of 30% (2015: 30%) 

- 

-

Consolidated

30 June 2016 
$ 

30 June 2015 
$

 20  Key management personnel disclosures

  a)  Key management personnel compensation

  Short-term employee benefits 
  Long-term benefits 
  Post-employment benefits 
  Share-based payments 

  b) Details of remuneration

Consolidated

30 June 2016 
$ 

30 June 2015 
$

793,567 
28,116 
56,204 
66,500 

944,387 

880,522 
32,208 
59,788 
57,751

1,030,269

   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 30 to 38.

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Renascor Resources Limited ABN 90 135 531 341 annual report 2016

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Notes	to	the	consolidated	financial	statements

 20  Key management personnel disclosures continued

  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 $54,134 
(2015: $77,978) from Euro which has been capitalised as Exploration Expenditure during the financial 
year. An amount of $5,235 (2015: $13,736) was owing to Euro at 30 June 2016.

   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 
$72,600 (2015: $51,150) from CGAA of which $72,600 (2015: $51,150) has been capitalised as Exploration 
Expenditure during the financial year. An amount of $11,330 (2015: $6,600) was owing to CGAA at 
30 June 2016.

   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 $72,660 (2015: $15,000) from BCP which was included as a cost of the capital 
raising during the financial year. An amount of $Nil (2015: $Nil) was owing to BCP at 30 June 2016.

   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 $6,770 (2014: $9,690) from Arion Legal 
of which $6,770 was included as a legal expense during the financial year. An amount of $Nil (2015: $Nil) 
was owing to Arion Legal at 30 June 2016.

   Mr R Keevers is a director and also has an equity interest in Eyre Peninsula Minerals Pty Ltd (EPM). The 
Company has an agreement with EPM and EPM’s shareholders that grants the Company the option to 
acquire up to 100% of EPM in exchange for exploration expenditure and shares and options in Renascor. 
The Company has acquired 49% of EPM by meeting its exploration expenditure requirements and issuing 
shares to EPM shareholders on 11 July 2016 (See note 26 for details). Mr Keevers received 20,195,334 
shares in connection with the shares issued to EPM shareholders. On 29 August 2016, the Company 
notified EPM of its intention to exercise its remaining option to acquire the balance of the issued capital 
of EPM, and it is expected that this will be completed during the fourth quarter of 2016.

 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:

  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 

  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 

  Total auditors’ remuneration 

Consolidated

30 June 2016 
$ 

30 June 2015 
$

35,579 

35,579 

30,300

30,300

7,076 

42,655 

6,929

37,229

  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.

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Renascor Resources Limited ABN 90 135 531 341 annual report 2016

Notes	to	the	consolidated	financial	statements

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 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

  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 

Consolidated

30 June 2016 
$ 

30 June 2015 
$

1,756,447 
585,259 
- 

1,863,988 
926,958 
-

2,341,706 

2,790,946

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.

  Non-cancellable operating lease commitments:

  Within one year 
  Later than one year but not later than five years 
  Later than five years 

- 
- 
- 

- 

- 
- 
-

-

   The office lease expired on 30 November 2013. The company continues to occupy the office with rent 
payable monthly in advance on a month to month basis.

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.

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Renascor Resources Limited ABN 90 135 531 341 annual report 2016

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Notes	to	the	consolidated	financial	statements

 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 

Country of 
incorporation 

  Kurilpa Uranium Pty Ltd 
  Astra Resources Pty Ltd 
  Sol Jar Property Pty Ltd 1 
  Eyre Peninsula Minerals Pty Ltd 2 

Australia 
Australia 
Australia 
Australia 

Class of 
Shares 

Ordinary 
Ordinary 
Ordinary 
Ordinary 

Enquity holding

2016 
% 

100 
100 
100 

20* 

2015 
%

100 
100 
- 
-

 1

 The Company completed a transaction to acquire 100% of Sol Jar Property Pty Ltd, the owner of the Munglinup project, a highly prospective 
graphite-nickel sulphide tenement position in the Albany-Fraser Range province of Western Australia. As consideration, the Company issued 
18,000,000 ordinary shares and 4,000,000 listed options @ $0.03 expiring on 30 September 2016. For accounting purposes the Company has 
treated the acquisition as an asset acquisition.

2   The Company entered into a binding agreement with Eyre Peninsula Minerals Pty Ltd (EPM) and EPM’s shareholders (EPM JV Agreement) that 
granted the Company an option to acquire up to 100% of EPM in exchange for exploration expenditure and shares and options in Renascor. 
EPM, in turn, has an option to acquire Ausmin Development Pty Ltd (Ausmin), an unlisted company that holds the underlying rights to the 
Arno graphite project. Pursuant to the EPM JV Agreement the company managed the exploration program as agreed with EPM. The Company 
completed its earn-in commitment during June 2016 and accordingly acquired 20% of EPM’s issued capital. During June 2016 the Company 
notified EPM of its intention to exercise its option acquire an additional 29% of EPM’s issued capital which was completed subsequent to 
year end, on 11 July 2016. Pursuant to the EPM JV Agreement the Company had a voting control over the management committee. For 
accounting purposes the Company has considered that it had effective control over the activities of EPM from the 20 June 2016 and it has been 
consolidated in the Company’s Financial Reports from that date. The equity in EPM is held by subsidiary, Kurilpa Uranium Pty Ltd.

  Summarised Financial Information of Subsidiaries with Material Non-controlling Interests

   Set out below is the summarised financial information for each subsidiary that has non-controlling interests 
that are material to the Group, before any intragroup eliminations. Note that Eyre Peninsula Minerals Pty 
Ltd became a controlled entity of the Group during the reporting period ending 30 June 2016

  Summarised Financial Position 
  Current assets 
  Non-current assets 
  Current liabilities 
  Non-current liabilities 

  NET ASSETS 

  Carrying amount of non-controlling interests 

           Eyre Peninsula Minerals Pty Ltd

2016 $ 

2015 $

49,763 
1,999,512 
(49,275) 
- 

2,000,000 

1,600,000 

- 
- 
- 
-

-

-

   There was no revenue, expenditures or cash flow recorded in EPM from the period of acquisition to  
30 June 2016

 25  Joint Operations

   Currie Joint Venture 

   On 5 September 2013 the Company entered into a joint venture agreement with Currie Resources Pty Ltd 
(the Currie Joint Venture Agreement), an unlisted company holding exploration licence applications in the 
Eyre Peninsula adjacent to the Company’s Eastern Eyre project. The Company had the ability to acquire 
100% interest of two exploration licences, subject to the final grant of the licences to Currie. The two 
licences, EL 5400 and EL 5401, were granted on 30 April 2014 and the Company paid Currie $25,000 and 
issued 500,000 Renascor shares in exchange for a two-year option during which time the Company would 
manage and fund all exploration within the optioned areas.

   On 30 April 2016, marking the end of the two year option period, the Company elected to exit the Currie 
Joint Venture and relinquished its option to acquire 100% interest in EL 5400 and EL 5401 from Currie 
Resources Pty Ltd, resulting in the write off of $238,310 capitalised Exploration and Evaluation Expenditure.

68

 
 
   
 
 
 
 
 
 
 
 
 
 
  
   
 
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
Renascor Resources Limited ABN 90 135 531 341 annual report 2016

Notes	to	the	consolidated	financial	statements

 26  Business Combinations

   Eyre Peninsula Minerals Pty Ltd

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   During December 2015, the Company entered into an agreement with Eyre Peninsula Minerals Pty Ltd 
(EPM) and EPM’s shareholders (EPM JV Agreement) that granted the Company an option to acquire up 
to 100% of EPM in exchange for exploration expenditure and shares and options in Renascor. EPM, in 
turn, has an option to acquire Ausmin Development Pty Ltd (Ausmin), an unlisted company that holds 
the underlying rights to the Arno graphite project. Pursuant to the EPM JV Agreement, the Company 
committed to completing $400,000 in exploration expenditure by 21 June 2016 in exchange for shares 
representing 20% of the issued shares of EPM. The EPM JV Agreement grants the Company two 
additional options pursuant to which the Company can increase its ownership in EPM to 100%.

   During June 2016, the Company completed its initial earn-in commitment of $400,000 in exploration 
expenditure acquiring 20% of EPM. The Company also exercised its option to acquire an additional 29% 
of the issued shares of EPM in exchange for the issue of 38,666,667 ordinary shares in Renascor on  
11 July 2016, at the closing price of $0.016 and valued $618,667 and taking the Company’s holding in 
EPM to 49%.

   From completion of the earn-in, the activities and strategic direction of EPM are controlled by 
management committee. Pursuant to the EPM JV Agreement the Company had a voting control over 
the management committee. For accounting purposes the Company has considered that it had 
effective control over the activities of EPM and consolidated EPM in the Company’s Financial Reports 
from 21 June 2016.

   On 29 August 2016, the Company exercised its second option to acquire the remaining 51% of EPM, 
subject to shareholder approval. Pursuant to the EPM JV Agreement, the consideration will be ordinary 
shares to the value of $2,040,000 and 15,000,000 unlisted options with an exercise price of 5 cents per 
ordinary share and expiring 3 years from the date of issue. Pursuant to the EPM JV Agreement, the 
value and issue price of each share is calculated using the 20-day VWAP as at the date of exercise of the 
option which has been calculated as $0.048492. Accordingly, subject to shareholder approval, Renascor 
will issue 42,068,684 ordinary shares and 15,000,000 unlisted options to subscribe for fully paid 
ordinary shares in Renascor with an exercise price of 5 cents per ordinary share and expiry 3 years 
from the issue date.

  Details of the acquisition consideration and the net assets are as follows:

  Net Assets 

  Cash Assets 

  Receivables 

  Exploration and Evaluation Expenditure 2 

  Payables 

  Consideration

  16 June 2016 - Earn-in Exploration Expenditure (20% Equity) 

  Non-controlling interest 1 

Fair Value

$

46,876

2,887

1,999,512

(49,275)

2,000,000

400,000

1,600,000

2,000,000

1  

2  

 An 80% interest in Eyre Peninsula Minerals Pty Ltd (EPM) is held by non-controlling interest. The fair value of the non-controlling interests 
at acquisition date has been recognised at $1,600,000 which was determined with reference to the fair value of net assets of EPM at 

acquisition date.

 EPM’s carrying value of Exploration and Evaluation Expenditure was $232,160 at acquisition and as a result of the acquisition, a 
carrying value adjustment of $1,767,352 was recognised and re-valued up the Exploration and Evaluation Expenditure to its fair value of 

$1,999,512.

  There was no business combination for year ended 30 June 2015.

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Renascor Resources Limited ABN 90 135 531 341 annual report 2016

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Notes	to	the	consolidated	financial	statements

 27  Events occurring after the reporting period 

   Pursuant to the EPM JV Agreement, the Company completed the exercise its first option to acquire an 
additional 29% of the issued shares of EPM. On 11 July 2016 the Company issued 38,666,667 ordinary 
shares in Renascor at the closing price of $0.016 valued $618,667 and taking the Company’s holding in 
EPM to 49%.

   On 11 July 2016, the Company issued 39,266,668 ordinary fully paid shares and 9,816,668 listed options 
exercisable@ $0.03 expiring on 30 September 2016. The Shares and options completed the fundraising 
initiated in May 2016 in raising a further $589,000 before costs.

   On 11 July 2016, the Company issued 600,001 ordinary fully paid shares to management as a result of 
the exercise of performance rights held.

   On 25 August 2016, the Company issued 32,000 ordinary fully paid shares as a result of the exercise of 
32,000 listed options @ $0.03 expiring on 30 September 2016

   On 29 August 2016 the Company exercised its second option to acquire the remaining 51% of EPM, 
subject to shareholder approval within 2 months. Pursuant to the EPM JV Agreement the consideration 
will be Ordinary shares to the value of $2,040,000 plus 15,000,000 unlisted options with an exercise price 
of 5 cents per ordinary share and expiry 3 years from the date of issue. The value and issue price of 
each share is calculated using the 20-day VWAP as at the date of exercise of the option which has been 
calculated as $0.048492. Accordingly, subject to shareholder approval, Renascor will issue 42,068,684 
ordinary shares and 15,000,000 unlisted options to subscribe for fully paid ordinary shares in Renascor 
with an exercise price of 5 cents per ordinary share and expiring 3 years from the issue date.

   On 5 September the Company announced that it had executed an underwriting agreement that provides 
the confidence that it will receive total gross proceeds of $1.9m from its listed 3 cent options expiring on 
30 September 2016 (“Listed Options”). The underwriting agreement is with Bizzell Capital Partners Pty 
Ltd (“BCP”), an entity associated with Stephen Bizzell (Chairman of Renascor), pursuant to which BCP has 
agreed to act as Underwriter to the exercise of the Listed Options and will also have the right to act as 
Lead Manager to a share placement to raise up to an additional $600,000.

 28  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 
  R&D Claim received 
  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 

Consolidated

30 June 2016 
$ 

30 June 2015 
$

(890,079) 
4,158 
- 
190,942 
265,602 

(4,932,426) 
7,296 
(41,556) 
- 
4,266,131 

66,500 

41,126 

(7,524) 
7,467 
47,725 
(9,852) 

138,258 
5,064 
(5,260) 
78,389

  Net cash inflow / (outflow) from operating activities 

(325,061) 

(442,977)

  Non-cash financing and investing activities

  Shares and options issued to Vendors of Sol Jar Property Pty Ltd for 
  no cash consideration in respect of Exploration and Evaluation activities 

(249,394) 

(22,000)

  Shares issued to non-executive directors in lieu of 50% of cash 
  director fees from 1 April 2015 to 31 March 2016 pursuant to NEDSP  

  Performance rights issued to executive directors for no cash consideration 

(66,500) 

- 

(33,250)

(7,876)

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Renascor Resources Limited ABN 90 135 531 341 annual report 2016

Notes	to	the	consolidated	financial	statements

 29  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 

  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

  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 * 

Consolidated

30 June 2016 
Cents 

30 June 2015 
Cents

(0.4) 

(0.4) 

(0.4) 

(0.4) 

(3.5)

(3.5)

(3.5)

(3.5)

Consolidated

30 June 2016 
$ 

30 June 2015 
$

(890,079) 

(4,932,426)

(890,079) 

(4,932,426)

Consolidated

30 June 2016 
Number 

30 June 2015 
Number

229,059,984 

139,658,005

- 

-

  Weighted average number of ordinary shares and potential ordinary 
  shares used as the denominator in calculating diluted earnings per share 

229,059,984 

139,658,005

  * 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 30.

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Renascor Resources Limited ABN 90 135 531 341 annual report 2016

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Notes	to	the	consolidated	financial	statements

 30  Share-based payments

   a)  Share based payments to directors, executives and consultants 

   At the AGM held on 27 November 2014 and 26 November 2015, 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 2016 the Company has issued 
3,276,424 ordinary fully paid shares to the non-executive directors pursuant to the NEDSP for the twelve 
month period from 1 April 2015 to 31 March 2016.

  Set out below are summaries of options granted to directors, senior management and consultants:

Balance 
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 & 
exercisable 
at end of 
the year 
Number

Options 

Grant 
date 

Expiry 
date 

Exercise 
price 

Consolidated – 2016 
30 Aug 2010  31 Dec 2014  $0.24 
31 Dec 2014  $0.24 
27 Oct 2010 

     Total 

Weighted average exercise price 

Consolidated – 2015 
30 Aug 2010  31 Dec 2014  $0.24 
31 Dec 2014  $0.24 
27 Oct 2010 

     Total 

- 
- 

- 

$- 

1,000,000 
700,000 

1,700,000 

Weighted average exercise price 

$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. (2015: nil 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 (2015: $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 (2015: $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:

Balance 
start of  
the year 
Number 

Granted 
during 
the year 
Number 

Exercised 
during 
the year 
Number 

Lapsed 
during 
the year 
Number 

Balance 
at end of 
the year 
Number 

Vested & 
exercisable 
at end of 
the year 
Number

Performance rights 

Grant 
date 

Expiry 
date 

Exercise 
price 

Consolidated – 2016 
28 Feb 2014  28 Feb 2021 
30 Nov 2012  30 Nov 2019 

$Nil 
$Nil 

     Total 

116,667 
550,000 

666,667 

Consolidated – 2015 
28 Feb 2014  28 Feb 2021 
30 Nov 2012  30 Nov 2019 

     Total 

$Nil 
$Nil 

274,167 
1,292,500 

1,566,667 

- 
- 

- 

- 
- 

- 

- 
- 

- 

- 
- 

- 

(11,666) 
(55,000) 

105,001 
495,000 

105,001 
495,000

(66,666) 

600,001 

600,001

(157,500) 
(742,500) 

116,667 
550,000 

40,834 
192,500

(900,000) 

666,667 

233,334

   There was no weighted average remaining contractual life of the above performance rights outstanding at the 

end of the period (2015: 4.90 years).

   There was no equity settled share-based payment expense recognised in the current period in respect of the 
performance rights granted above to directors and executives (2015: $7,876). Any amounts recognised are 

included under employee benefits expense in the statement of profit or loss and other comprehensive income.

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Renascor Resources Limited ABN 90 135 531 341 annual report 2016

Notes	to	the	consolidated	financial	statements

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 30  Share-based payments continued

   b)   Exploration and evaluation share based payments 

   During the year ended 30 June 2016, the Company issued 18,000,000 ordinary shares and 4,000,000 
listed options @ $0.03 and expiring on 30 September 2016, as consideration for the acquisition of Sol 
Jar Property Pty Ltd, the owner of the Munglinup project, a highly prospective graphite-nickel sulphide 
tenement position in the Albany-Fraser Range province of Western Australia.

   The amount of the equity settled share-based payment recognised in the current period in respect of the 
ordinary shares issued is $234,000 (2014: $22,000). Amounts previously recognised have been included as 
exploration and evaluation expenditure within the non-current assets in the statement of financial position.

  Set out below are summaries of the granted options:

Options 

Grant 
date 

Expiry 
date 

Exercise 
price 

2016  
Consolidated – Listed Options 
26 Feb 2016 

30 Sep 2016  $0.03 

2016  
Consolidated – Unlisted Options 
20 Dec 2010 
30 Apr 2012 

17 Feb 2015  $0.24 
30 Apr 2016  $0.054 

     Total 

Balance 
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 & 
exercisable 
at end of 
the year 
Number

-  

4,000,000  

- 
750,000 

- 
- 

750,000 

4,000,000 

-  

- 
- 

- 

-  

4,000,000  

4,000,000

- 
(750,000) 

- 

- 
-

(750,000) 

4,000,000 

4,000,000

Weighted average exercise price 

$0.054 

$0.03 

$- 

$0.054 

$0.03 

$0.03

Options 

Grant 
date 

Expiry 
date 

Exercise 
price 

Balance 
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 & 
exercisable 
at end of 
the year 
Number

2015 
Consolidated – Listed Options 
- 
-   

- 

-  

2015  
Consolidated – Unlisted Options 
20 Dec 2010 
30 Apr 2012 

17 Feb 2015  $0.24 
30 Apr 2016  $0.054 

     Total 

750,000 
750,000 

1,500,000 

- 

- 
- 

- 

Weighted average exercise price 

$0.147 

$- 

-  

- 

- 

-

- 
- 

- 

$- 

(750,000) 
- 

- 
750,000 

- 
750,000

(750,000) 

750,000 

750,000

$0.24 

$0.054 

$0.054

   The weighted average remaining contractual life of the above share options outstanding at the end of 
the period was 0.25 years (2015: 0.84 years).

   The amount of the equity settled share-based payment recognised in the current period in respect of 
the options granted above $15,194 (2015: $Nil). Amounts are recognised and included as exploration 
and evaluation expenditure within the non-current assets in the statement of financial position.

  c)  Equity raising share based payments

  There were no equity raising share based payments during the year ended 30 June 2016.

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Renascor Resources Limited ABN 90 135 531 341 annual report 2016

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Notes	to	the	consolidated	financial	statements

 30  Share-based payments continued

   d)  Fair value of performance rights granted 

   The assessed fair value at grant date of options is allotted equally over the period from grant date to 
vesting date. Fair values of options at grant date are determined using the Black-Scholes Model. This 
option pricing model takes into account the exercise price, the term of the option, the vesting and 
performance criteria, the impact of dilution, the non-tradable nature of the option, the share price at 
grant date, expected price volatility of the underlying share, the expected dividend yield and the risk free 
interest rate for the term of the option (refer to table below for inputs used).

  The following table lists the inputs to the models used to value options for the year ended 30 June 2016:

Black Scholes Model inputs  

  Options grant date 
  Options expiry date 
  Weighted average exercise price 
  Weighted average life of the options 
  Weighted average underlying share price 
  Expected share price volatility 
  Weighted average risk free interest rate 
  Number of options issued 
  Value (Black-Scholes) per option 
  Total value of options issued 

  e)  Fair value of performance rights granted

Sol Jar

01/10/2016 
30/09/2016 
$0.30 
1 years 
$0.14 
123.26% 
1.98% 
4,000,000 
$0.0038 
$15,194

	 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.

	 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.

  f)  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 year covered by the above tables, 4,000,000 listed options were granted, 750,000 
unlisted options expired, 433,333 performance rights vested and became exercisable and 66,666 
performance rights lapsed.

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Renascor Resources Limited ABN 90 135 531 341 annual report 2016

Notes	to	the	consolidated	financial	statements

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 31  Parent Entity financial information

  a)  Summary financial information

  The individual financial statements for the Parent Entity show the following aggregate amounts:

  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 

Parent entity

30 June 2016 
$ 

30 June 2015 
$

983,082 
4,659,611 

1,323,394 
3,792,527

5,642,693 

5,115,921

428,496 
70,750 

454,946 

397,316 
57,630

454,946

5,143,448 

4,660,975

13,235,479 
1,041,506 
(9,133,537) 

11,903,316 
1,026,312 
(8,268,653)

5,143,448 

4,660,975

(864,884) 

(4,928,730)

(864,884) 

(4,928,730)

   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 2016.

  c)  Contractual commitments for the acquisition of property, plant or equipment

As at 30 June 2016, the Parent Entity had no contractual commitments for the acquisition of property, 
plant or equipment.

  d)  Guarantees

As at 30 June 2016, the Parent Entity had not guaranteed the debts of any subsidiary Company.

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Notes	to	the	consolidated	financial	statements

 32  Application of new and revised Accounting Standards

   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 2016. 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.

Standard/Interpretation

beginning on or after

financial year ending

Likely impact

Effective for annual 

Expected to be 

reporting periods 

initially applied in the 

AASB 9 ‘Financial Instruments’ 

1 January 2018

30 June 2019

The Group is yet to undertake a detailed 

(December 2014), AASB 2014-7 

‘Amendments to Australian 

Accounting Standards arising 

from AASB 9’ (December 2014)

assessment of the impact of AASB 9. However, 

based on the entity’s preliminary assessment, 

the Standard is not expected to have a material 

impact on the transactions and balances 

recognised in the financial statements. when it 

is first adopted 30 June 2019

AASB 15 Revenue from 

1 January 2018

30 June 2019

The Group is yet to undertake a detailed 

contracts with customers, 

AASB 2014-5 Amendments to 

Australian Accounting 

Standards arising from 

AASB 15

AASB 2014-3 ‘Accounting for 

1 January 2016

30 June 2017

acquisitions of interests in joint 

operations’

AASB 2014-10 ‘Amendments to 

1 January 2016

30 June 2017

Australian Accounting Standards 

– Sale or Contribution of Assets 

between an Investor and its 

Associate or Joint Venture’

AASB 2015-1 ‘Amendments to 

1 January 2016

30 June 2017

Australian Accounting Standards 

– Annual Improvements to 

Australian Accounting Standards 

2012-2014

assessment of the impact of AASB 15. However, 

based on the entity’s preliminary assessment, 

the Standard is not expected to have a material 

impact on the transactions and balances 

recognised in the financial

statements when it is first adopted. 

There will be no impact on the financial 

statements when these amendments are first 

adopted because they apply prospectively to 

acquisitions of interests in joint operations.

There will be no impact on the financial 

statements when these amendments are first 

adopted because they apply prospectively to 

sales or contributions of assets occurring after 

the application date. 

When these amendments are first adopted 

there will be no material impact on the 

transactions and balances recognised in the 

financial statements. 

AASB 2015-2 ‘Amendments 

1 January 2016

30 June 2017

These amendments affect presentation and 

to Australian Accounting 

Standards – Disclosure Initiative: 

Amendments to AASB 101’

disclosures only. Therefore on first time 

adoption of these amendments on 1 July 2016, 

comparatives will need to be restated in line 

with presentation and note ordering.   

AASB 16 Leases

1 January 2019

30 June 2020

The entity is yet to undertake a detailed 

assessment of the impact of AASB 16. However, 

based on the entity’s preliminary assessment, 

the Standard is not expected to have a material 

impact on the transactions and balances 

recognised in the financial statements when it 

is first adopted.

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Directors’ declaration

In the directors’ opinion:

a)   the financial statements and notes set out on pages 42 to 76 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

 ii)   give a true and fair view of the Group’s financial position as at 30 June 2016 and of its 

performance for the financial year ended on that date, and

b)   the remuneration disclosures included on pages 30 to 38 of the directors’ report (as part 

of the audited Remuneration Report) for the year ended 30 June 2016, comply with section 
300A of the Corporations Act 2001.

c)    there are reasonable grounds to believe that the Company will be able to pay its debts as 

and when they become due and payable, and

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. 

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Director

 Adelaide 
Date: 30 September 2016

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Independent auditor’s report to members

Tel: +61 8 7324 6000 
Fax: +61 8 7324 6111 
www.bdo.com.au 

Level 7, BDO Centre 
420 King William St 
Adelaide SA 5000 
GPO Box 2018, Adelaide SA 5001 
AUSTRALIA 

INDEPENDENT AUDITOR’S REPORT 

TO THE MEMBERS OF RENASCOR RESOURCES LIMITED 

Report on the Financial Report 

We have audited the accompanying financial report of Renascor Resources Limited, which comprises 
the consolidated statement of financial position as at 30 June 2016, the consolidated statement of 
profit or loss and other comprehensive income, the consolidated statement of changes in equity and 
the consolidated statement of cash flows for the year then ended, notes comprising a summary of 
significant accounting policies and other explanatory information, and the directors’ declaration of 
the consolidated entity comprising the company and the entities it controlled at the year’s end or 
from time to time during the financial year.  

Directors’ Responsibility for the Financial Report 

The directors of the company are responsible for the preparation of the financial report that gives a 
true and fair view in accordance with Australian Accounting Standards and the Corporations Act 
2001 and for such internal control as the directors determine is necessary to enable the preparation 
of the financial report that gives a true and fair view and is free from material misstatement, 
whether due to fraud or error. In Note 1, the directors also state, in accordance with Accounting 
Standard AASB 101 Presentation of Financial Statements, that the financial statements comply with 
International Financial Reporting Standards.  

Auditor’s Responsibility  

Our responsibility is to express an opinion on the financial report based on our audit. We conducted 
our audit in accordance with Australian Auditing Standards. Those standards require that we comply 
with relevant ethical requirements relating to audit engagements and plan and perform the audit to 
obtain reasonable assurance about whether the financial report is free from material misstatement.   

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures 
in the financial report. The procedures selected depend on the auditor’s judgement, including the 
assessment of the risks of material misstatement of the financial report, whether due to fraud or 
error. In making those risk assessments, the auditor considers internal control relevant to the 
company’s preparation of the financial report that gives a true and fair view in order to design audit 
procedures that are appropriate in the circumstances, but not for the purpose of expressing an 
opinion on the effectiveness of the company’s internal control. An audit also includes evaluating the 
appropriateness of accounting policies used and the reasonableness of accounting estimates made 
by the directors, as well as evaluating the overall presentation of the financial report.   

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis 
for our audit opinion. 

Independence 

In conducting our audit, we have complied with the independence requirements of the Corporations 
Act 2001. We confirm that the independence declaration required by the Corporations Act 2001, 
which has been given to the directors of Renascor Resources Limited, would be in the same terms if 
given to the directors as at the time of this auditor’s report.

BDO Audit (SA) Pty Ltd ABN 33 161 379 086 is a member of a national association of independent entities which are all members of BDO (Australia) Ltd ABN 77 050 110 275,  
an Australian company limited by guarantee. BDO Audit (SA) Pty Ltd and BDO (Australia) Ltd are members of BDO International Ltd, a UK company limited by guarantee, and  
form part of the international BDO network of independent member firms. Liability limited by a scheme approved under Professional Standards Legislation (other than for  
the acts or omissions of financial services licensees). 

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Independent auditor’s report to members

Opinion  

In our opinion:  

(a)  the financial report of Renascor Resources Limited is in accordance with the Corporations Act 

2001, including:  

(i)  giving a true and fair view of the consolidated entity’s financial position as at 30 June 

2016 and of its performance for the year ended on that date; and  

(ii)  complying with Australian Accounting Standards and the Corporations Regulations 2001; 

and  

(b)  the financial report also complies with International Financial Reporting Standards as disclosed 

in Note 1.  

Report on the Remuneration Report  

We have audited the Remuneration Report included in pages 6 to 13 of the directors’ report for the 
year ended 30 June 2016. The directors of the company are responsible for the preparation and 
presentation of the Remuneration Report in accordance with section 300A of the Corporations Act 
2001. Our responsibility is to express an opinion on the Remuneration Report, based on our audit 
conducted in accordance with Australian Auditing Standards.  

Opinion  

In our opinion, the Remuneration Report of Renascor Resources Limited for the year ended 30 June 
2016 complies with section 300A of the Corporations Act 2001.  

BDO Audit (SA) Pty Ltd  

Michael Haydon 
Director 

Adelaide, 30 September 2016 

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Renascor Resources Limited Shareholder information 30 June 2016

The shareholder information set out below was applicable as at 1 September 2016.

  A.  Distribution of equity securities

  Analysis of numbers of equity security holders by size of holding:

Holding 

1 – 1000 

  1,001 – 5,000 

  5,001 – 10,000 * 

  10,001 – 100,000 

 100,001 and over 

  Ordinary Shares  Unlisted Options 

Listed Options

14 

 20 

74 

471 

 388 

       967   

   – 

–  

 – 

–  

–  

–  

    2

   13

    7

   59

86

167

* Holdings of 10,000 shares 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

  Name 

  1  Mr Richard Edward Keevers 

  2  David Christensen 

  3  Slri Pty Limited  

  4  Casalamada Pty Ltd 

  5  Rookharp Investments Pty Limited  

  6  St Lucia Resources Capital Fund Pty Limited  

  7  Mr David Vigolo  

  8  Cannc Consulting Pty Ltd 

  9  Douglas Ian Young  

 10  Geoffrey William Mcconachy 

 11  Bizzell Nominees Pty Ltd 

 12  Clasm Pty Ltd  

 13  Mr John Stephen Finnemore & Mrs Leigh Finnemore  

 14  Dr Leon Eugene Pretorius  

 15  CPS Control Systems Pty Limited  

 16  M & K Korkidas Pty Ltd  

 17  Mr Steven Vigolo  

 18  Andrew Robert Joseph Martin  

 19  Mrs Tracey Ann Mezzino  

 20  Mr Gregory Michael Josephson & Mrs Mary Margaret Josephson  

  Total  

80

Ordinary Shares

Number held 

18,717,627 

12,200,000 

11,000,000 

10,300,000 

10,000,000 

9,000,000 

8,200,000 

8,033,333 

7,881,102 

7,959,667 

6,758,333 

5,500,000 

5,166,667 

5,000,000 

4,444,445 

4,062,097 

3,915,000 

3,834,988 

3,250,000 

3,231,422 

Percentage of  
issued Shares

5.16%

3.36%

3.03%

2.84% 

2.75%

2.48%

2.26%

2.21%

2.17%

2.19%

1.86%

1.52%

1.42%

1.38%

1.22%

1.12%

1.08%

1.06%

0.90%

0.89%

147,788,014       

40.71%

 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
   
 
 
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      
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Renascor Resources Limited Shareholder information 30 June 2016

  B.  Equity security holders (continued) 

  Quoted equity securities (continued)

  Name 

  1  M & K Korkidas Pty Ltd  

  2   Mr Gregory Michael Josephson & Mrs Mary Margaret Josephson  

  3  Wythenshawe Pty Ltd  

  4  Idinoc Pty Ltd  

  5   Mr Steven John Larkins & Mrs Ann Kathleen Larkins  

  6   Mr John Stephen Finnemore & Mrs Leigh Finnemore  

  7  CPS Control Systems Pty Limited  

  8  Casalamada Pty Ltd  

  9  Master Terrence Vogiatzis  

 10  Mr David Phillip Bamford  

 11  Mr Luke Milojevic  

 12  Mr Peter Howarth  

 13  Rookharp Investments Pty Limited  

 14  Howarth Super Pty Ltd  

 15  Clasm Pty Ltd  

 16   Mr John Colin Loosemore & Mrs Susan Marjory Loosemore  

 17   Martin Place Securities Staff Superannuation Fund Pty Ltd  

 18  Mr Brian Carl Bartels & Mrs Angela Bartels  

 19  Gibson Constructions Pty Ltd  

 20  Andrew Robert Joseph Martin  

  Total  

  Unquoted equity securities

  Performance Rights 

  Share options 

  There are no unlisted Performance Rights or unlisted options on issue.

Listed Options

Number held 

Percentage of  
listed Options

6,331,051 

5,706,947 

5,000,000 

3,520,000 

1,750,000 

1,666,667 

1,666,667 

1,500,000 

1,423,000 

1,320,000 

1,267,462 

1,100,000 

1,000,000 

1,000,000 

1,000,000 

1,000,000 

875,000 

833,333 

833,333 

791,667 

9.84%

8.87%

7.77%

5.47%

2.72%

2.59%

2.59%

2.33%

2.21%

2.05%

1.97%

1.71%

1.55%

1.55%

1.55%

1.55%

1.36%

1.29%

1.29%

1.23%

39,585,127 

61.51%

Number on  
 issue/granted 

Number 
of holders

N/A 

N/A 

N/A

N/A

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Renascor Resources Limited annual report 2016 
 
 
 
   
 
 
 
   
 
 
 
 
   
 
 
 
   
 
 
 
 
 
 
 
 
 
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Renascor Resources Limited Shareholder information 30 June 2016

  C.  Substantial holders

  Substantial holders in the Company are set out below:

  Name 

  Andrew Martin + Related Interests 

  Richard Keevers + Related Interests 

  Total 

  D.  Voting rights

Ordinary Shares

Number held 

Percentage 

23,834,988 

20,195,334 

44,030,322 

6.57%

 5.56%

12.13%

  The voting rights attaching to each class of equity securities are set out below:

  a)  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.

  b)  Options and Performance Rights

  No voting rights.

  E.  Restricted securities

  There were 38,666,667 ordinary shares, subject to voluntary escrow, on issue as at 1 September 2016.

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Renascor Resources Limited Shareholder information 30 June 2016

  F.  Interests in Tenements

  The Group held the following interests in tenements as at 1 September 2016:

  Tenement 

Name 

% Interest 

Application  Grant Date 

Expiry Date 

Lodged 

  South Australia 

  EL 5822 (Prev EL4721) 

Iron Baron, SA 

  EL 5012 

  EL 5236 

Cultana, SA 

Old Wartaka, SA 

  EL 4675 2 (ELA2016/21)  Gairdner, SA 

  EL 4836 

Lake Harris, SA 

  EL 5733 (Prev EL4570)  Warrior, SA 
  EL 4707 2 (ELA2015/234)  Carnding, SA 

  EL 4822 1 

  EL 5586 

  EL 5585 

  EL 5584 

  EL 5228 

  EL 5322 

Willouran, SA 

Callana Area, SA 

Cutana, SA 

Outalpa, SA 

Wompinie, SA 

100 % 

100 % 

100 % 

100 % 

100 % 

100 % 

100 % 

100 % 

100 % 

100 % 

100 % 

100 % 

Lake Callabonna, SA 

100 % 

  EL 5204 # 

Malbrom, SA 

  EL 5495 # 

Lipson Cove, SA 

  EL 5618 # 

Verran, SA 

  EL 5715 # 

Malbrom West, SA 

0% - option to earn  
100% interest 

0% - option to earn 
100% interest

0% - option to earn 
100% interest

0% - option to earn 
100% interest

#  Tenement Holder – Ausmin Development Pty Ltd 
1  Tenement under renewal – Form 29 lodged with Department of State Development (DSD) 
2  Tenement under subsequent renewal – Form 29 lodged with DSD

  Western Australia 

  E74/517 

  E74/518 

  E74/523 

  E74/531 

  E74/538 

  E74/544 

  E74/545 

Munglinup Project, WA 

100 % 

Munglinup Project, WA 

100 % 

Munglinup Project, WA 

100 % 

Munglinup Project, WA 

100 % 

Munglinup Project, WA 

100 % 

Munglinup Project, WA 

100 % 

Munglinup Project, WA 

100 % 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

04-Apr-16 

03-Apr-18

13-Sep-12 

12-Sep-17

08-May-13  07-May-17

22-Feb-11 

21-Feb-16 2

15-Feb-12 

14-Feb-17

21-Sep-15 

21-Sep-17

28-Mar-11  27-Mar-16 2

17-Jan-12 

16-Jan-16 1

07-Apr-15 

06-Apr-17

10-Dec-09 

09-Dec-16

10-Dec-09 

09-Dec-16

01-May-13  30-Apr-17

16-Jul-12 

15-Jul-17

05-Apr-13 

04-Apr-18 

29-Sep-14 

28-Sep-19 

29-Jan-15 

28-Jan-20 

05-Feb-16 

04-Feb-21 

12-Mar-12 

11-Mar-17

03-Jul-12 

02-Jul-17

18-Sep-12 

17-Sep-17

26-Aug-13 

25-Aug-18

04-Jul-14 

03-Jul-19

04-Jul-14 

03-Jul-19

04-Jul-14 

03-Jul-19

  Northern Territory 

  ELA27517 

  ELA27518 

Nirripi Nth, NT 

0 (Application)  29-Jul-09 

Nirripi West, NT 

0 (Application)  29-Jul-09 

- 

- 

-

-

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Renascor Resources Limited annual report 2016 
 
 
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   
 
 
 
 
 
   
 
 
 
 
   
 
 
 
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
ASX Code: 
  RNU

Share Registry 

 Link Market Services Limited 
ANZ Building 
Level 15, 324 Queen Street 
Brisbane Qld 4000 
Phone: +61 2 8280 7454 
Fax: +61 2 92870303

Auditors 

 BDO Audit (SA) Pty Ltd 
Level 7, BDO Centre 
420 King William Street 
Adelaide SA 5000 
Phone: +61 8 7324 6000 
Fax: +61 8 7324 6111 

Renascor Resources Limited 
  ABN 90 135 531 341

Directors  
  Stephen Bizzell 
  David Christensen 
  Geoffrey McConachy 
  Andrew Martin 
  Chris Anderson 
  Richard Keevers

Secretary 
  Angelo Gaudio

Administration and Registered Office 

 36 North Terrace 
Kent Town SA 5067 
Phone: + 61 8 8363 6989 
Fax: +61 8 8363 4989 
Website: www.renascor.com.au

84