Siviour Graphite
A tier one graphite
development in Australia
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Renascor Resources Limited annual report 2017
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Siviour Graphite
A tier one graphite
development in Australia
Highlights & achievements
Chairman’s letter
Review of operations
Directors’ report
Auditor’s independence declaration
Financial statements
Directors’ declaration
Independent auditor’s report
Shareholder’s information
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5
6
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32
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69
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74
Corporate directory
inside back cover
Competent Persons Statement
Mineral Resource
The information in this document that relates to Mineral Resources is based upon information compiled by Mrs Christine
Standing who is a Member of the Australasian Institute of Mining and a Member of the Australian Institute of Geoscientists.
Mrs Standing is an employee of Optiro Pty Ltd and has sufficient experience relevant to the style of mineralisation, the type of
deposit under consideration and to the activity undertaken to qualify as a Competent Person as defined in the 2012 edition of
the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mrs Standing consents to the
inclusion in the report of a summary based upon her information in the form and context in which it appears.
Exploration Results
The information in this document that relates to exploration activities and exploration results is based on information compiled
and reviewed by Mr G.W. McConachy who is a Fellow of the Australasian Institute of Mining and Metallurgy. Mr McConachy is
a director of the Company. 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 the reviewed information in the form and context in which it appears.
Mining Study
The information in this document that relates to mine design and mine plan scheduling is based on information complied and
reviewed by Mr Ben Brown, who is a Member of the Australasian Institute of Mining and Metallurgy. Mr Brown is an employee of
Optima Consulting and Contracting Pty Ltd and a consultant to the Company. Mr Brown has sufficient experience relevant to the
type of deposit under consideration 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 Brown consents to
the inclusion in the report of the matters based on the reviewed information in the form and context in which it appears.
Metallurgical Results
The information in this document that relates to metallurgical test work results is based on information compiled and reviewed
by Mr Simon Hall, who is a Member of the Australasian Institute of Mining and Metallurgy. Mr Hall is a consultant to the
Company. Mr Hall has sufficient experience relevant to the mineralogy and type of deposit under consideration and the typical
beneficiation thereof 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 Hall consents to the inclusion in
the report of the matters based on the reviewed information in the form and context in which it appears.
Scoping Study
The information in this document that relates to the process plant and infrastructure design for a Scoping Study level
assessment is based on information compiled and reviewed by Mr David Pass, who is a Member of the Australasian Institute of
Mining and Metallurgy. Mr Pass is an employee of BatteryLimits. Mr Pass has sufficient experience relevant to process plant
and infrastructure design thereof 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 Pass consents to the
inclusion in the report of the matters based on the reviewed information in the form and context in which it appears.
This report may contain forward-looking statements. Any forward-looking statements reflect management’s current beliefs based
on information currently available to management and are based on what management believes to be reasonable assumptions.
It should be noted that a number of factors could cause actual results, or expectations to differ materially from the results
expressed or implied in the forward-looking statements.
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Renascor’s past financial year was highlighted by its activities at its
Siviour Graphite Project in South Australia’s Eyre Peninsula, where
Renascor achieved several significant milestones in the development of
Siviour, establishing Siviour’s potential as a tier-one graphite project.
Key achievements during the year included:
Globally competitive project economics
The Siviour Scoping Study, completed in May 2017, demonstrates
the globally competitive potential of Siviour. The study showed a
NPV10 (after-tax) of $551million, with an estimated operating cost
$450/tonne (against a basket sales price of $1,420/tonne) and a
payback of 1.7 years.
Summary of key results from Scoping Study
Annual graphite concentrate production
(tonnes per annum)
Plant throughput (tonnes per annum)
LOM average feed grade (TGC)
NPV10 (after tax)
IRR (after tax)
Cash cost of production
(per tonne of concentrate)
Capital cost (pre-production)
Sustaining capital
Basket sales price
123,000
1,650,000
8.1%
$551m
59%
$450
$144m
$28m
$1,420
Payback (after-tax) from first production
1.7 years
3
Renascor Resources Limited annual report 2017
Mineral Resource upgrade
In March 2017, Renascor upgraded its JORC-complaint Mineral
Resource estimate for Siviour to 80.6Mt @ 7.9% TGC for 6.4Mt of
contained graphite. Siviour, which is the largest graphite resource
in Australia and among the largest reported graphite deposits in
the world, remains open at shallow depths along strike, suggesting
additional opportunity to expand.
Siviour Mineral Resource estimate as of 15 March 2017
Category
Indicated
Inferred
Total
Tonnes of
mineralisation
(millions)
TGC
Tonnes of
contained graphite
(millions)
51.8
28.8
80.6
8.1%
7.6%
7.9%
4.2
2.2
6.4
Note: Cut-off grade of 3% total graphitic carbon.
High-quality graphite concentrates
Mineral processing test work undertaken during the year
established the ability to produce high-quality coarse flake graphite
from Siviour core. The tests confirmed a large proportion of coarse
flake graphite concentrates using an industry standard flotation
circuit at average purity levels of 94% TCG and recoveries of 85%.
Additional test work has demonstrated the ability to achieve higher
purity levels, including grades of over 99% TCG with an additional
regrind and flotation circuit. The test work demonstrates the
potential to produce graphite for sale into both the traditional
industrial markets, as well as into the lithium-ion battery sector and
other high growth segments.
Flake size and category
Particle size
Flake category
Microns (μm)
Mesh (#)
Distribution
Jumbo
Large
>300
+48
180 to 300
-48 to +80
Medium
150 to 180
-80 to +100
Small
Fine
75 to 150
-100 to +200
<75
-200
8%
25%
15%
39%
13%
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Dear Shareholder,
It is with great pleasure that I present Renascor’s Annual Report for the
year ended 30 June 2017.
Renascor made a number of breakthrough achievements during the
year in the development of our Siviour Graphite Project, advancing the
project from a competitive graphite development in the context of other
Australian projects to a globally competitive asset.
Our drilling at Siviour intersected broad extensions of near-surface
graphite, resulting in a greater than five-times increase in the size of
our Mineral Resource estimate. Siviour is the largest reported graphite
resource in Australia, and one of the largest in the world. Subsequent
geophysical surveys suggest the mineralised body extends even further
along-strike at shallow depths, highlighting the unique, world-class nature
of the Siviour mineralised body.
Another important milestone we reached during the year involved our
mineral processing test work, in which we demonstrated the ability to
produce a high-quality graphite concentrate from Siviour core, including
the ability to produce purity of over 99% TCG from a conventional graphite
flotation circuit. Importantly, this work demonstrates that Siviour can
produce graphite for sale into both the traditional industrial markets, as
well as into the high-growth lithium-ion battery sector.
The globally competitive character of Siviour was highlighted with the
release of our Siviour Scoping Study. Due to the near-surface, flat-lying
orientation of Siviour and the ability to produce competitive graphite
concentrates, the study returned robust economics that compare
favourably to other graphite developments globally.
The strong growth in graphite demand, underscored in particular by the
expanded use of electric vehicles using lithium-ion batteries, suggests
there will be corresponding demand for new graphite developments like
Siviour. With globally competitive project economics, we believe Siviour,
located in the secure mining jurisdiction of South Australia, offers much
needed diversity of supply into the graphite supply chain.
As we continue our development of Siviour in the current year, there is
strong reason to believe that the progress made in the past year, together
with continued developmental activities and favourable graphite market
dynamics, will offer the potential 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 sincerely,
Dick Keevers
Chairman
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Renascor Resources Limited annual report 2017
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Siviour Graphite
A tier one graphite
development in Australia
The Siviour Graphite Project is located near the coast of
Eyre Peninsula, an historical graphite producing region of
South Australia. See Figure 1. The project contains the
Siviour Graphite Deposit, which is Australia’s largest, and among
the world’s largest, reported graphite mineral resources. See
Siviour in comparison to other graphite resources on page 9 of this
annual report. The Siviour Project forms part of Renascor’s Arno
Project, which consists of four granted mineral exploration licences,
ELs 5618, 5204, 5496 and 5714, covering approximately 1,372km2.
During the recently completed financial year, Renascor’s activities
were principally focused on advancing the development of Siviour.
Key milestones reached during the year included a significant
expansion in the size of the Siviour Mineral Resource, the
completion of initial metallurgical test work and, in May 2017, the
completion of the Siviour Scoping Study.
Figure 1. The Siviour
Graphite Project on
the Eyre Peninsula,
South Australia.
Port Augusta
South Australia
Kimba
Whyalla
Port Lincoln
Adelaide
Waddikee
Campoona
Oakdale
Cleve
Cowell
Siviour Graphite
Project
Kookaburra
Gully
Uley
Port Lincoln
Arno Project Tenements
Graphite mine
Graphite deposits
Major roads
Railway
0
50
100 km
Adelaide
6
EYRE PENINSULA
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Mineral Resource at Siviour
During the recently completed financial year, Renascor completed 65
holes for 3888 metres of drilling, and significantly expanded the size
of the Siviour Mineral Resource. The Indicated and Inferred Resource
for Siviour is shown below in Table 1.
Siviour Mineral Resource estimate as of 15 March 2017
Category
Indicated
Inferred
Total
Tonnes of
mineralisation
(millions)
TGC
Tonnes of
contained graphite
(millions)
51.8
28.8
80.6
8.1%
7.6%
7.9%
4.2
2.2
6.4
Note: Cut-off grade of 3% total graphitic carbon.
Siviour resource breakdown by cut-off grades
Table 2 below shows the Siviour total Mineral Resource at varying
cut-off grades and the corresponding grade and total contained
tonnes of graphite.
Table 2: Siviour Mineral Resource by cut-off grade
Cut-off
Tonnes of
TGC
Tonnes of
grade TGC
mineralisation
(millions)
contained grahite
(millions)
3%
4%
5%
6%
7%
8%
8.6%
9%
10%
80.6
78.2
73.6
65.8
55.1
40.5
30.1
23.8
12.1
7.9%
8.1%
8.3%
8.6%
9.0%
9.6%
10.0%
10.3%
11.2%
6.4
6.3
6.1
5.7
5.0
3.9
3.0
2.5
1.4
Drilling and resource modelling undertaken during the year
continued to confirm the general horizontal orientation of the
Siviour mineralised body. The average width of mineralisation is
21m, and most of the graphite mineralisation occurs beneath 10m
to 25m of surface cover.
Within the Siviour Indicated Resource area, the thick, shallow
graphite-mineralised body is near flat-lying over the southern
and central portions of the prospect before dipping to the north.
See Figure 3.
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Renascor Resources Limited annual report 2017
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Figure 3. Siviour -- Plan
view showing Indicated
and Inferred Resources
over electromagnetic
conductive zones and
cross-sections with TGC
assay results (5%TGC
cut-off in dark red and
3% TGC cut-off in light
red) over north-south
Sections 631200E,
631800E and 632400E.
631000m E
631000m E
SIVIOUR
SIVIOUR
633000m E
633000m E
DRILL HOLES
DRILL HOLES
Significant graphite
Significant graphite
No significant graphite
No significant graphite
Inferred
Inferred
Resource
Resource
2km
2km
6
6
2
2
4
4
8
8
0
0
0
0
0
0
m
m
N
N
6
6
2
2
4
4
6
6
0
0
0
0
0
0
m
m
N
N
Indicated
Indicated
Resource
Resource
Section
Section
631200E
631200E
Section
Section
631800E
631800E
Section
Section
632400E
632400E
Section 632400m E
Section 632400m E
S
S
SIV079
SIV079
SIV078
SIV078
SIV068
SIV068
SIV001
SIV001
High-grade graphite zon e
High-grade graphite zon e
SIV002
SIV002
SIV007
SIV007
SIV004
SIV004
SIV110
SIV110
N
N
Cover sequence
Cover sequence
0
0
Open
Open
-100m
-100m
Calc-silcate
Calc-silcate
6245600
6245600
6245700
6245700
6245800
6245800
6245900
6245900
6246000
6246000
S
S
Section 631800m E
Section 631800m E
SIV017
SIV017
SIV018
SIV018
SIV019
SIV019
SIV020
SIV020
SIV021
SIV021
SIV022
SIV022
SIV081
SIV081
Graphite schist
Graphite schist
High-grade graphite zone
High-grade graphite zone
6245700
6245700
6245800
6245800
6245900
6245900
6246000
6246000
6246100
6246100
Open
Open
S
S
Section 631200m E
Section 631200m E
N
N
N
N
SIV038
SIV038
SIV037
SIV037
SIV039
SIV039
SIV040
SIV040
SIV036
SIV036
SIV041
SIV041
SIV025
SIV025
High-grade graphite zone
High-grade graphite zone
Open
Open
Cover sequence
Cover sequence
Open
Open
6245700
6245700
6245800
6245800
6245900
6245900
6246000
6246000
6246100
6246100
6246200
6246200
0
0
-100
-100
0
0
-100
-100
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20
18
16
14
12
10
8
6
4
2
0
C
G
T
%
e
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G
Figure 4. Scatter plot
showing reported
grade (%TGC) and total
contained graphite
as measured by the
sum of Measured and
Indicated Resources
(Source: company
reports).
Siviour in comparison to other graphite resources
As shown below in Figure 4, the Siviour Graphite Deposit is the
largest reported JORC resource in Australia and ranks as the ninth
largest reported graphite Indicated Resource in the world.
World-wide Graphite Deposits
24.2%
Talga (Vittagi)
Focus
Graphite Corp
Graphex
Lincoln
Walkabout
Valence
Leading Edge
Archer
Battery (Central)
Talga (Raitajarvi)
Kibaran (Metawinie)
Bass
Graphite One
Oakdale
Hexagon
Zenyatta
Nouveau
Alabama
Northern Graphite
Mason (Lac Gueret)
Kibaran (Epanko)
Renascor (Siviour)
Triton
(Nicanda Hill)
Syrah (Balama)
Battery (Montepuez)
Energizer (Molo)
Black Rock (Mahenge)
Magnis (Nachu)
Volt (Namangale)
1
2
3
4
5
6
7
8
9
10
11
12
50
Contained graphite - Million tonnes
Australian deposits
Extensions to Siviour
Following the completion of the Siviour Mineral Resource estimate
in March 2017, Renascor completed an airborne electromagnetic
(EM) survey over areas within and adjacent to the Siviour Indicated
Resource. The EM survey confirmed significant near-surface
flat-lying extensions along strike form the current resource area.
See Figure 5.
OPEN
Figure 5. Siviour
Indicated Resource
outline over 40m
airbone EM depth slice
highlighting conductivity
continuity into adjoining
prospect areas.
Buckies
Indicated
Resource
SIVIOUR
6
2
4
8
0
0
0
m
N
6
2
4
6
0
0
0
m
N
OPEN
Paxtons
632000mE
634000mE
2km
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Renascor Resources Limited annual report 2017
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Figure 6.
Comparison of
EM conductivity
depth images
and cross section
for EM line 1390.
Throughout the year,
Renascor Resources
presented at a
number of investor
conferences.
10
As illustrated in the EM depth slices shown in Figure 6, at an
interpreted depth of approximately 20m (top left image), there is
strong correlation between conductivity and the Siviour Indicated
Resource. In this area, graphite mineralisation commences from
approximately 5m to 10m and includes intersections of graphite
mineralisation of over 30m.
As shown in the EM cross-section for flight line 1390 (Figure 6,
bottom image), the EM data confirms the near-surface, flat-lying
orientation of graphite mineralisation over the Indicated Resource
and suggests this geometry continues into conductive anomalies
in the Buckies and Paxton areas, adjacent to the current Indicated
Resource.
At a depth slice of 40m (Figure 6, top right image), larger areas
of comparable conductivity are evident to the north of Siviour
(at the Buckies prospect) and to the southeast (at the Paxtons
prospect). Previous drilling within these prospect areas intersected
some of the widest graphite intersections within the project area,
suggesting the potential for significant extensions to the current
Indicated Resources with a similarly favourable near-surface, flat-
lying orientation.
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Mineral process test work
During the financial year, Renascor completed initial metallurgical
test work on core samples taken from Siviour. The tests confirmed
a large proportion of coarse flake graphite concentrates using an
industry standard flotation circuit at average purity levels of 94%
TCG and recoveries of 85%. See Table 3.
Table 3: Summary of Siviour concentrate size distribution
Particle size
Flake category
Microns (μm)
Mesh (#)
Distribution
Jumbo
Large
>300
+48
180 to 300
-48 to +80
Medium
150 to 180
-80 to +100
Small
Fine
75 to 150
-100 to +200
<75
-200
8%
25%
15%
39%
13%
The initial work focused on an industry standard design, consisting
of a crushing and grinding circuit, followed by four stages of
flotation and re-grinding prior to drying and separation. Test work
was undertaken at ALS Metallurgy (Adelaide) and Bureau Veritas
Minerals (Adelaide) on core samples obtained from 14 diamond
holes drilled within areas representative of a sector of low strip
ratio mineralisation considered to be of prime economic interest.
High purity graphite
Additional test work has demonstrated the ability to achieve higher
purity levels, including grades of over 99% TCG with an additional
regrind and flotation circuit. Continuing metallurgical programs
will include the addition of a cost-effective circuit designed to
achieve high purity, +99% TGC within the fine flake categories, while
maintaining flake size in the coarse flake categories at purity levels
in excess of 94% TGC.
Renascor believes that Siviour has the potential to produce high
quality and cost-competitive graphite concentrates for sale into
both the traditional industrial markets, as well as into the lithium-
ion battery sector and other high growth segments.
11
The Advertiser story,
24 May 2017
Renascor Resources Limited annual report 2017
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Figure 7. Summary
of reported flake
size distribution at
>300μm, >180μm
and >150μm size
fractions and
average concentrate
grade of graphite
projects in Australia
and Syrah’s
Balama project
in Mozambique
(Source: company
reports)
50%
45%
40%
35%
30%
25%
20%
15%
10%
5%
0
Siviour in comparison to other graphite resources
The initial metallurgical result continued to mark Siviour as unique
within Australia, with a proportion of coarse flake graphite products
that compares favourably to market leader Syrah Resources’ (ASX:
SYR) Balama graphite project in Mozambique. See Figure 7.
94%
95%
91%
N/A
95%
98.5%
Average
concentrate
grade
Cumulative
concentrates
>300 μm
>180 μm
>150 μm
Renascor
(Siviour)
Syrah
(Balama)
Buxton
(Yalbra)
Hexagon
(Macintosh)
Lincoln
(Kookaburra Gully)
Archer
(Campoona)
Renascor has since modified the flowsheet design parameters to
achieve improved graphite concentrate recoveries. Test work of six
core samples using the modified flowsheet has resulted in similar
purity and flake size distribution results as achieved in the initial
metallurgical test program, with corresponding improvements in
recovery.
Further metallurgical work programs will include additional
variability tests using the improved flowsheet design, as well as
optimisation tests focused on ore pre-treatment, grinding and
flotation to improve overall purities and recovery of coarse graphite
concentrates.
Siviour Scoping Study
Following completion of the initial metallurgical testing, Renascor
completed the Siviour Scoping Study. The Scoping Study considered
multiple mine options based on a 20-year mine life in which the
entire Life of Mine (LOM) graphite production target would be
entirely included within the existing Indicated Resource of Siviour.
Based on market requirements and potential capital raising
capacity, an annual production rate of 123,000 tonnes per annum
was selected as the most viable scenario.
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The Scoping Study is based on producing flake graphite
concentrates from a proposed open pit mine and graphite
production plant to be located on the project site in South
Australia. The potential to produce spherical graphite or other
advanced materials through downstream processing is to be
considered in further studies.
BatteryLimits, an independent mining consulting group, acted as
the Scoping Study manager and supervising engineer.
A summary of the key results of the Scoping Study is described
below in Table 4.
Table 4: Summary of key results from Scoping Study
Annual graphite concentrate production
(tonnes per annum)
Plant throughput (tonnes per annum)
LOM average feed grade (TGC)
NPV10 (after tax)
IRR (after tax)
Cash cost of production
(per tonne of concentrate)
Capital cost (pre-production)
Sustaining capital
Basket sales price
123,000
1,650,000
8.1%
$551m
59%
$450
$144m
$28m
$1,420
Payback (after-tax) from first production
1.7 years
Managing Director,
David Christensen
presenting at the 2017
South Australian Resources
& Energy Investment
Conference.
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Renascor Resources Limited annual report 2017
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Key Financial Results of Scoping Study
Key Financial Results of Scoping Study
Product Pricing. The Scoping Study used a basket price of $1,420/t
Product Pricing. The Scoping Study used a basket price of $1,420/t
(US$1,051/t) based on discussions with potential end-users and
(US$1,051/t) based on discussions with potential end-users and
market professionals, as well as investigations into prices adopted
market professionals, as well as investigations into prices adopted
by peer companies.
by peer companies.
Table 3: Summary of Siviour concentrate size distribution
Particle size
Flake category Microns (μm)
Mesh (#) Distribution Pricing – FOB (US$)
>300
+48
8%
US$2,100/t
Jumbo
Large
180 to 300
-48 to +80
Medium
150 to 180
-80 to +100
Small
Fine
Basket price
75 to 150
-100 to +200
<75
-200
25%
15%
39%
13%
US$1,450/t
US$1,150/t
US$750/t
US$425/t
US$1,051/t
Capital Costs. Estimated pre-production capital costs for the
Scoping Study are provided below.
Area
Australian Dollars
US Dollars
Process Plant
Site Infrastructure
EPCM
Contingency
Owners’ costs
Other
Total
$87.9m
$16.7m
$15.3m
$5.1m
$15.7m
$3.1m
US$65.0m
US$12.4m
US$11.3m
US$3.8m
US$11.6m
US$2.3m
AU$143.9m
US$106.5m
Operating Costs. Estimated annual cash operating costs for the
Scoping Study are provided below.
Area
AU$/year
AU$/ tonne
US$/ tonne of
of concentrate
US$/year
concentrate
Mining and technical
services
$14.4m
$117
US$10.7m
US$87
Processing and power
$27.9 m
$224
US$20.6m
US$166
General and
administration
$2.4m
Product logistics FOB
$11.1m
$19
$90
US$1.8m
US$8.2m
US$14
US$67
Total
AU$55.8
AU$450
US$41.3m
US$333
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Other projects
Whilst Renascor focused its activities during the year on the
Siviour Graphite Project, it continues to maintain interests
in multiple projects in key mineral provinces of South Australia
and Western Australia. Key projects, in addition to the
Arno Project, include:
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Perth
Warrior
Gairdner
Farina
Olary
Eastern Eyre
Munglinup
Arno
Adelaide
• Munglinup. The Munglinup Project is located in the Albany-
Fraser Range province of Western Australia between the towns of
Esperance and Ravensthorpe. Renascor considers the project area
to offer high prospectivity for graphite, lithium, nickel and cobalt.
Aeromagnetic image
for Young River nickel/
cobalt target.
15
Renascor Resources Limited annual report 2017
• 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 prospects for large tonnage Zambian Copper Belt-
style, sedimentary copper deposits.
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Farina Project,
showing geology and
historical copper
occurrences.
• Gairdner. The Gairdner Project is located in South Australia’s
Gawler Craton, southwest of the Olympic Dam iron-oxide,
copper-gold (IOCG) deposit. Renascor’s exploration activities at
Gairdner are focused on IOCG and epithermal silver targets.
Aeromagnetic
image and gravity
contours for Kokatha
IOCG target.
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Renascor Resources Limited annual report 2017
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 2017.
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
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.
Mr Keevers 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
Chairman of the board
Stephen Bizzell, Non-Executive Director
Stephen is Chairman of boutique corporate
advisory and funds management group Bizzell
Capital Partners. He is highly experienced in
the fields of corporate restructuring, debt and
equity financing, mergers and acquisitions
and has over 20 years corporate finance and
public company management experience in
the resources sector in Australia and Canada.
Stephen was previously an Executive Director of
Arrow Energy from 1999 to until its acquisition
in 2010 by Royal Dutch Shell and PetroChina
for $3.5 billion. Stephen was instrumental in
Arrow’s corporate and commercial success
and its growth from a junior explorer to a large
integrated energy company. Stephen spent his
early career in the corporate finance division of
Ernst & Young and the tax division of Coopers
& Lybrand and qualified as a Chartered
Accountant. He is also a 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), Hot Rock
Ltd (2009 to 2014), Diversa Ltd (2010 to 2016),
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
Member of the Audit and Risk Management
Committee
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, where he oversaw
the operation of the Beverley uranium
mine and the development of the Four Mile
uranium deposit. 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
Richard Keevers, Non-Executive Chairman
(Appointed as a Non-Executive Director on 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
Corporation. 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
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Andrew Martin, Non-Executive Director
Chris Anderson, Non-Executive Director
Andrew Martin is Head of Infrastructure and
Utilities, ANZ at Deutsche Bank. Andrew has
worked in a banking or advisory capacity
for over 15 years, generally within the
infrastructure, utilities and natural resources
sectors advising on transactions within these
sectors. Andrew has a Bachelor of Economics
(Hons) from the University of Sydney and is a
founder 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
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. 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
Richard Keevers
David Christensen
Geoffrey McConachy
Chris Anderson
Stephen Bizzell
Andrew Martin
Meetings of directors
42,167,525
15,285,334
8,501,334
13,570,113
20,919,002
24,626,655
7,834,399
-
-
-
-
-
-
-
-
-
-
-
The numbers of meetings of the Company’s board of directors and of each board committee held
during the year ended 30 June 2017, and the numbers of meetings attended by each director were:
Full meetings of directors
Audit Committee meetings
Director
A
Attended
Richard Keevers (Appointed 22 July 2016)
N/A
David Christensen
Geoffrey McConachy
Chris Anderson
Stephen Bizzell
Andrew Martin
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6
6
6
6
B
Held
N/A
6
6
6
6
6
A
Attended
N/A
N/A
2
N/A
2
2
B
Held
N/A
N/A
2
N/A
2
2
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
Review and results of operations
There were no dividends declared or paid during
the financial year (2016: Nil).
Principal activities
Renascor Resources is an Australian-based
company focused on the development of
economically viable deposits containing graphite,
copper, gold and other minerals. Renascor has an
extensive tenement portfolio, holding interests in
key mineral provinces of South Australia, Western
Australia and the Northern Territory, including
the Siviour graphite project near Arno Bay, South
Australia. The principal activity of the Group
during the financial year was mineral exploration
and evaluation.
a) Corporate and Financial
•
For the year ended 30 June 2017, the loss
for the Group after providing for income
tax was $1,085,492 (2016: $890,079).
This included a write down of capitalised
exploration and evaluation expenditure
of $300,851 and relinquishment of ten
tenements during the period.
• On 5 December 2016, Renascor completed
the acquisition of a 100% ownership interest
in Eyre Peninsula Minerals Pty Ltd (EPM).
Renascor previously owned 49% of the
outstanding share capital of EPM, and, as
first announced on 1 September 2016,
Renascor exercised its option to acquire the
remaining 51% of EPM subject to obtaining
shareholder approval at Renascor’s annual
general meeting on 25 November 2016.
Having obtained such approval at the
annual general meeting, Renascor acquired
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the remaining 51% of EPM on 5 December
2016 in exchange for 42,068,884 ordinary
shares in Renascor and 15,000,000 unlisted
options exercisable at $0.05 per option and
expiring 5 December 2019.
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 Project.
• During the year ended 30 June 2017,
Renascor’s activities were focused on
the Arno Project in South Australia’s
Eyre Peninsula, and in particular, the
Siviour Graphite Project. Exploration and
development activities undertaken during
the year included expanding the size of
the Siviour deposit, completing initial
metallurgical testwork on Siviour core
and completing the Siviour Scoping Study
(released on the ASX on 23 May 2017).
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 a 100% interest in EPM,
which has the right to acquire the Arno
Project, including the Siviour Graphite
Project,
- The discovery of additional graphite
mineralization at Siviour,
- The upgrading of the Mineral Resource
estimate for Siviour,
- The completion of initial metallurgical
testwork on Siviour core, and
Significant changes in the state of
affairs
There have been no significant changes in the
Group’s state of affairs during the financial year
other than have been disclosed elsewhere in
this report.
Matters subsequent to the end of the
financial year
On 20 September 2017, the Company announced
that it has received firm commitments from
professional and sophisticated investors for a
placement to raise approximately $3 million
(before costs) (Placement). Proceeds from the
Placement are planned to advance the Siviour
Graphite Project.
The Placement will be completed via the issue
of up to approximately 179.5 million fully paid
ordinary shares in the Company at a price of
$0.017 per share, in two tranches. All shares
issued under the Placement will include one
attaching option for every two new shares issued.
The options, subject to shareholder approval,
will have an exercise price of $0.03, will be
exercisable any time prior to 31 October 2019,
and are expected to be quoted on ASX, subject to
satisfying ASX criteria.
Tranche #1 of the Placement was completed on
27 September 2017 resulting in Renascor receiving
a total of $2,051,867 (before costs). This has
provided Renascor with sufficient cash balances to
fund operations for at least 12 months from the
signing of these statements.
In the opinion of the directors, no other matter
or circumstance has arisen since 30 June 2017
that has significantly affected, or may significantly
affect:
• the Group’s operations in future financial
- The completion of the Siviour Scoping
years, or
Study.
•
In addition to its activities at the Arno
Project, Renascor has maintained a strong
exploration portfolio, identifying and
maintaining a pipeline of targets for the
development of graphite, lithium, nickel,
uranium, gold, copper and other mineral
assets. To limit non-essential expenditure,
Renascor has also relinquished tenements
considered less prospective.
•
the results of those operations in future
financial years, or
• the Group’s state of affairs in future
financial years.
21
Renascor Resources Limited annual report 2017
• 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.
Relationship between remuneration and Group
performance
During the financial year, the Group has
generated losses as its principal activity was
exploration for graphite, copper, gold 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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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.
Remuneration report – audited
This remuneration report sets out remuneration
information for the Group’s non-executive
directors, executive directors and other key
management personnel of the Group and the
Company.
a) Key management personnel
The following persons were key management
personnel of the Company during the
financial year:
Directors
Position
Non-Executive Chairman
Richard Keevers
David Christensen
Managing Director
Geoffrey McConachy Executive Director
Chris Anderson
Stephen Bizzell
Andrew Martin
Non-Executive Director
Non-Executive Director
Non-Executive Director
Other key management personnel:
Angelo Gaudio
CFO and Company
Secretary
b) Principles used to determine the nature and
amount of remuneration
Role of the remuneration committee
The board carries out the functions of the
Remuneration and Nominations Committees and
is responsible for reviewing and negotiating the
compensation arrangements of senior executives.
It assesses the appropriateness of the nature
and amount of remuneration of such officers on
a periodic basis by relevant employment market
conditions with the overall objective of ensuring
maximum stakeholder benefit from the retention
of a high quality Board and executive team. The
board is responsible for managing:
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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
2017
2016
2015
2014
2013
(Loss) for the year
attributable to owners ($)
($1,085,492)
($890,079)
($4,932,426)
($1,513,910)
($528,989)
Basic earnings per share (cents)
Share price (cents) at year end
(0.2)
1.6
Increase/(decrease) in share price (%)
(25.0%)
(0.5)
2.0
(0%)
(3.5)
2.0
(1.3)
3.7
(0.5)
3.5
(45.9%)
5.7%
(32.7%)
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.
Commencing on 1 October 2014, non-executive
directors have received payment for 50% of
their director fees with the balance to be issued
in shares pursuant to the NEDSP. During the
year ended 30 June 2017, 50% of non-executive
director fees were withheld by the Company
pursuant to the NEDSP, but as at 30 June 2017, the
NEDSP shares relating to the period 1 April 2016
to 30 June 2017 remain to be issued.
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 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.
24
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
one basis).
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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 18 and 19
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
2017
Name
Non-executive directors
Richard Keevers 1 (Appointed 22 July 2016)
Chris Anderson 1
Stephen Bizzell 1
Andrew Martin 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
$
$
$
23,600
16,500
25,000
16,530
$
-
-
-
-
-
$
-
-
-
-
-
4,142
-
-
3,470
7,612
20,000 1
16,500 1
25,000 1
20,000 1
47,742
33,000
50,000
40,000
81,500 1 170,742
Sub-total non-executive directors
81,630
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
personnel compensation
273,600 3
239,200
18,815
-
13,957
13,376
19,616
19,616
- 325,988
- 272,192
100,000 2
-
-
14,118
- 100,000
612,800
18,815
27,333
39,332
- 698,180
694,430
18,815
27,333
46,844
81,500 1 868,922
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
ended 30 June 2017, 50% of non-executive director fees were withheld by the Company pursuant to the NEDSP
and as at 30 June 2017 the NEDSP shares relating to the period 1 April 2016 to 30 June 2017 remain to be issued.
Richard Keevers joined this scheme in October 2016, before this his full fee was paid as salary.
2 On 15 April 2016, Mr Gaudio terminated his employment agreement with the Company. Cash salary and fees
include the payment of 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.
3 This amount includes $24,000 in entitlements paid during the year.
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Key management personnel of the Company and the Group
2016
Name
Non-executive directors
Chris Anderson 1
Stephen Bizzell 1
Andrew Martin 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
$
16,500
30,000
16,530
$
-
-
-
-
$
-
-
-
-
$
$
Total
$
-
-
3,470
3,470
16,500 1
30,000 1
20,000 1
33,000
60,000
40,000
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
-
-
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
ended 30 June 2017, 50% of non-executive director fees were withheld by the Company pursuant to the NEDSP
and as at 30 June 2017 the NEDSP shares relating to the period 1 April 2016 to 30 June 2017 remain to be issued.
Richard Keevers joined this scheme in October 2016, before this his full fee was paid as salary.
2 On 15 April 2016, Mr Gaudio terminated his employment agreement with the Company. Cash salary and fees
include the payment of 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.
The relative proportions of remuneration that are linked to performance and those that are
fixed are as follows:
Name
2017
2016
2017
2016
2017
2016
Fixed remuneration
At risk - STI
At risk - LTI*
Non-executive directors of the Company
Chris Anderson
Stephen Bizzell
Andrew Martin
Executive directors of the Company
David Christensen
Geoffrey McConachy
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
Other key management personnel of the Group
Angelo Gaudio
100%
100%
-%
-%
-%
-%
-%
-%
-%
-%
-%
-%
-%
-%
-%
-%
-%
-%
-%
-%
-%
-%
-%
-%
-%
-%
* 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 2017
and 2016.
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-month’ notice or a termination
payment of six months. As at year ended 30
June 2017, his per annum rate, exclusive of
superannuation, was payable at a rate of $249,600
per annum. In addition, David is also entitled to
private health insurance.
Geoffrey McConachy, Exploration Director,
has an agreement with the Company for an
indefinite term, subject to three-month’ notice
or a termination payment of three months. As
at year ended 30 June 2017, 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, the Company has an
agreement with Angelo Gaudio and his company
to provide services as Company Secretary and
Chief Financial Officer. Services are 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.
f) 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 2017:
2017
Name
Options
Balance at
at the start acquired during the
reporting year
of the year
Eercised
during the
Balance
at the end
reporting year of the year
Vested and
exercisable at
the end of the
reporting year
Value
of options
exercised
number
number
number
number
number
$
Directors of the Company
Richard Keevers 2
David Christensen 1
Geoffrey McConachy 1
Chris Anderson 1
Stephen Bizzell 1
Andrew Martin 1
-
250,000
375,000
1,000,000
500,000
625,000
Other key management personnel of the Group
7,834,399
416,667
166,667
500,000
666,667
166,667
(666,667)
(541,667)
(1,500,000)
(1,166,667)
(791,667)
- 7,834,399
-
-
-
-
-
7,834,399
-
-
-
-
-
-
1,333
1,083
3,000
2,333
1,583
Angelo Gaudio 1
250,000
333,333
(583,333)
-
-
1,167
* 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.
1 Listed options held by key management personnel, exercise price per option was $0.03.
2 Unlisted options held by Richard Keevers were issued as part of the consideration for the acquisition of Eyre
Peninsula Minerals Pty Ltd completed on 5 December 2016, as approved by shareholders at the Annual General
Meeting held on 25 November 2016.
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Performance Rights holdings
Details of performance rights held directly, indirectly or beneficially by key management personnel* as at
year ended 30 June 2017:
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
Vested and
exercisable at
the end of the
the year of the yesr reporting period
during the
reporting year
Value of
performance
rights
exercised
number
number
number
number
number
number
$
2017
Name
Balance at
the start
of the year
number
Directors of the Company
David
Christensen
252,000
Geoffrey
McConachy
Chris Anderson
Stephen Bizzell
Andrew Martin
243,000
-
-
-
Other key management personnel of the Group
Angelo Gaudio
105,001
600,001
-
-
-
-
-
-
-
(252,000)
(243,000)
-
-
-
(105,001)
(600,001)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
4,0321
3,8881
-
-
-
1,6801
9,600
1
Performance rights have a nil exercise price.
* 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.
Shares holdings
Listed options are held directly, indirectly or beneficially by key management personnel* as at year ended
30 June 2017:
2017
Name
Ordinary Shares -
Balance
at the start
of the year
Recieved during
the year on the
exercise of
Recieved during
the year on the
exercise of
options Performance Rights
Ordinary Shares -
Other
changes
during the year
Balance
at the end
of the year
Directors of the Company
Ordinary Shares
Richard Keevers
David Christensen
Geoffrey McConachy
Chris Anderson
Stephen Bizzell
Andrew Martin1
-
12,700,000
7,050,000
10,070,113
14,485,668
23,168,321
Other key management personnel of the Group
-
666,667
541,667
1,500,000
1,166,667
791,667
-
252,000
243,000
-
-
-
42,167,525 2
1,666,667 3
666,667 3
2,000,000 3
5,266,667 3
666,667 3
42,167,525
15,285,334
8,501,334
13,570,113
20,919,002
24,626,655
Ordinary shares
Angelo Gaudio
6,715,000
583,333
105,001
1,333,333 3
8,736,667
74,189,102
5,250,001
600,001
53,767,526
133,806,630
1 Mr Martin is a non-executive director and is a director of SLRI Pty Ltd and St Lucia Capital Fund Pty Ltd, which act as
corporate trustees for trust funds which together are substantial (greater than 5%) shareholders in the Company. Mr Martin
is a beneficiary of a trust ultimately holding a more than 20% interest in these trust funds.
2 Shares held by Richard Keevers were issued as part of the consideration of the acquisition of Eyre Peninsula Minerals Pty Ltd.
3 Shares acquired during the year through participation in fundraising activities and as approved by shareholders.
* 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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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 $5,100 (2016:
$6,770) from Arion Legal of which $5,100 was
included as a legal expense during the financial
year. An amount of $Nil (2016: $Nil) was owing to
Arion Legal at 30 June 2017.
Mr R Keevers was a director and also had an
equity interest in Eyre Peninsula Minerals Pty
Ltd (EPM) prior to the acquisition of EPM by the
Company. As part of the acquisition of EPM the
Company had an agreement with EPM and EPM’s
shareholders to acquire up to 100% of EPM in
exchange for exploration expenditure and shares
and options in Renascor. Following approval
given by its shareholders at the Annual General
Meeting held on 25 November 2016, the Company
completed the acquisition of EPM on the 5th
December 2016. (See note 24, in the notes to the
consolidated financial statements. for details). Mr
Keevers received a total of 42,167,525 shares and
7,834,399 options exercisable at $0.05 expiring on
5 December 2019 in connection with acquisition
securities issued to EPM shareholders.
g) 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 and 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 $133,900 (2016:
$54,134) from Euro which has been capitalised as
Exploration Expenditure during the financial year.
An amount of $1,846 (2016: $5,235) was owing to
Euro at 30 June 2017.
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 $69,850 (2016: $72,600)
from CGAA of which $69,850 (2016: $72,600)
has been capitalised as Exploration Expenditure
during the financial year. An amount of $4,235
(2016: $11,300) was owing to CGAA at
30 June 2017.
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.
The services provided are based on normal
commercial terms and conditions. During the
financial year the Company incurred expenses
of $170,687 (2016: $72,600) from BCP which was
included as a cost of the capital raising during the
financial year. An amount of $Nil (2016: $Nil)
was owing to BCP for capital raising services at
30 June 2017.
End of remuneration report - audited
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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
Exrecise price
of shares
Number under
option
5 December 2016 (unlisted options)
5 December 2019
$0.05
15,000,000
15,000,000
During the year ended 30 June 2017, 64,391,981 ordinary shares of Renascor Resources Limited were
issued on the exercise of listed options, including 5,250,001 issued to key management personnel. A total
of 600,001 shares were issued to key management personnel on the exercise of performance rights.
No further shares have been issued since year-end as a result of the exercise of performance rights or
options. No amounts are unpaid on any of the shares.
Indemnification and insurance of directors, officers and auditor
The Company has established an insurance policy to indemnify all directors and officers against all
liabilities to a third party that may arise from their position as directors or officers of the Company and
its controlled entities, except where the liability arises out of conduct involving a lack of good faith.
During the financial year, the Company paid a premium in respect of a contract insuring directors,
secretaries and executive officers of the Company and its controlled entities against a liability incurred
as director, secretary or executive officer to the extent permitted by the Corporations Act 2001.
The contract of insurance prohibits disclosure of the nature of the liability and the amount of the
premium.
The Company has not otherwise, during or since the end of the financial year, except to the extent
permitted by law, indemnified or agreed to indemnify an officer or auditor of the Company or any of
its controlled entities against a liability incurred as such an officer or auditor.
Non-audit services
During the financial year, the following fees for non-audit services were paid or payable to the auditor,
BDO, or their related practices:
Taxation services
Amounts paid to a related practice of BDO Audit (SA) Pty Ltd
for tax compliance and advisory services
Other specialist services
Amounts paid to a related practice of BDO Audit (SA) Pty Ltd
for expert and valuation services in relation to the acquisition of
Eyre Peninsula Minerals Pty Ltd.
Total remuneration for taxation services
Total fees for non-audit services
Consolidated
30 June 2017
$
30 June 2016
$
4,526
7,076
24,000
24,000
28,526
-
7,076
7,076
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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 32.
This report is made in accordance with a
resolution of directors.
David Christensen
Director
Adelaide Date: 28 September 2017
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/corporate-governance/
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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 ANDREW TICKLE
TO THE DIRECTORS OF RENASCOR RESOURCES LIMITED
As lead auditor of Renascor Resources Limited for the year ended 30 June 2017, 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.
Andrew tickle
Director
BDO Audit (SA) Pty Ltd
Adelaide, 28 September 2017
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).
32
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Consolidated statement of profit or loss and
other comprehensive income
For the year ended 30 June 2017
Revenue
Other Income
Administration and consulting
Depreciation and amortisation expense
Employee benefits expense
Legal fees
Office accommodation
Impairment of exploration costs
Other expenses
Loss before income tax
Income tax expense
Loss for the year
Other comprehensive income
Other comprehensive income for the year, net of tax
Notes
5 (a)
5 (b)
6
6
6
6
7
Consolidated
30 June 2017
$
30 June 2016
$
40,898
27,996
-
(269,020)
(3,000)
(341,146)
(15,706)
(30,596)
(374,343)
(92,579)
12,000
(129,559)
(4,158)
(427,155)
(10,288)
(30,596)
(265,602)
(62,717)
(1,085,492)
(890,079)
-
(1,085,492)
-
(890,079)
-
-
Total comprehensive income for the year
(1,085,492)
(890,079)
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
Earnings per share for loss attributable to the ordinary
owners of the Parent Entity:
Basic earnings per share
Diluted earnings per share
27
27
(1,085,492)
(890,079)
(1,085,492)
(890,079)
-
-
(1,085,492)
(890,079)
Cents
Cents
(0.2)
(0.2)
(0.4)
(0.4)
The above consolidated statement of profit or loss and other comprehensive income should be read in
conjunction with the accompanying notes.
34
Renascor Resources Limited ABN 90 135 531 341 annual report 2017
Consolidated statement of financial position
As at 30 June 2017
ASSETS
Current assets
Cash and cash equivalents
Other receivables
Other
Total current assets
Non-current assets
Property, plant and equipment
Exploration and evaluation
Other
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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Notes
30 June 2017
$
30 June 2016
$
8
9
10
12
13
14
1,230,213
39,076
10,963
862,488
154,720
15,887
1,280,252
1,033,095
4,287
7,333,025
20,000
7,287
5,977,606
-
7,357,312
5,984,893
8,637,564
7,017,988
284,225
136,811
345,763
132,007
421,036
477,770
98,082
98,082
70,750
70,750
519,118
548,520
8,118,446
6,469,468
16
17(a)
17(b)
18,628,616
(17,161)
(10,493,009)
13,235,479
1,041,506
(9,407,517)
Equity and reserves attributable the owners of
Renascor Resources Limited
8,118,446
4,869,468
Non-controlling interests
23
-
1,600,000
Total equity
8,118,446
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 changes in equity
For the year ended 30 June 2017
Consolidated
Contributed
equity
Share-based
Payments
Business
Combination
Reserve
Reserve
Notes
$
$
Balance at 1 July 2015
11,903,316
1,026,312
Loss for the year
Total comprehensive income
Transactions with owners
in their capacity as owners:
Contributions of equity
-
-
net of transaction costs
16(b)
1,332,163
Recognition of non-controlling
interest of Eyre Peninsula
Minerals Pty Ltd
24
Share-based payments
17(a)
-
-
-
-
-
-
15,194
1,332,163
15,194
Balance at 30 June 2016
13,235,479
1,041,506
Balance at 1 July 2016
13,235,479
1,041,506
Loss for the year
Total comprehensive income
Transactions with owners
in their capacity as owners:
Contributions of equity,
-
-
net of transaction costs
16(b)
2,734,470
Acquisition of non-controlling
interest of Eyre Peninsula
-
-
-
$
-
-
-
-
-
-
-
-
-
-
-
-
Accumulated
Non-
Losses
$
Total
controlling
$
$
Total
equity
$
(8,517,438) 4,412,190
- 4,412,190
(890,079)
(890,079)
(890,079)
(890,079)
-
-
(890,079)
(890,079)
-
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
(9,407,517) 4,869,468
1,600,000 6,469,468
(9,407,517) 4,869,468
1,600,000 6,469,468
(1,085,492)
(1,085,492)
- (1,085,492)
(1,085,492) (1,085,492)
- (1,085,492)
-
2,734,470
- 2,734,470
Minerals Pty Ltd
24
2,658,667
359,123
(1,417,790)
-
1,600,000
(1,600,000)
-
-
Amount recognised during
the current period for
Share-based payments
17(a)
-
-
-
5,393,137
359,123
(1,417,790)
-
-
-
-
4,334,470
1,600,000) 2,734,470
Balance at 30 June 2017
18,628,616
1,400,629
(1,417, 790)
(10,493,009) 8,118,446
- 8,118,446
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 2017
Consolidated statement of cash flows
For the year ended 30 June 2017
Consolidated
Notes
30 June 2017
$
30 June 2016
$
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)
162,722
(925,116)
41,027
147,985
-
74,463
(631,200)
28,733
192,942
10,000
Net cash inflow (outflow) from operating activities
26
(573,382)
(325,062)
Cash flows from investing activities
Cash held in subsidiary on acquisition
Payments for property, plant and equipment
Tenement security bond payment
Payments for exploration expenditure
-
(1,849)
(20,000)
(1,771,513)
46,876
-
-
(931,935)
Net cash inflow (outflow) from investing activities
(1,793,362)
(885,059)
Cash flows from financing activities
Payment for share issue expenses
Proceeds from issues of shares
(186,290)
2,920,760
(138,429)
1,135,702
Net cash inflow (outflow) from financing activities
2,734,470
997,273
Net increase / (decrease) in cash and cash equivalents
Cash and cash equivalents at the beginning of the financial period
367,725
862,488
(212,848)
1,075,336
Cash and cash equivalents at end of year
8
1,230,213
862,488
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 2017
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 - Other receivables
10 Non-current assets - Exploration and evaluation, development and mine properties
11 Non-current assets - Deferred tax assets
12 Current liabilities - Trade and other payables
13 Current liabilities - Provisions
14 Non-current liabilities - Provisions
15 Non-current liabilities - Deferred tax liabilities
16 Contributed equity
17 Reserves and retained earnings
18 Dividends
19 Key management personnel disclosures
20 Remuneration of auditors
21 Commitments and contingent liabilities
22 Related party transactions
23 Subsidiaries
24 Business Combinations
25 Events occurring after the reporting period
26 Reconciliation of profit after income tax to net cash outflow from operating activities
27 Earnings per share
28 Share-based payments
29 Parent Entity financial information
30 Application of new and revised Accounting Standards
39
45
48
48
49
49
50
51
51
52
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53
53
53
54
56
57
57
58
59
59
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62
62
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Renascor Resources Limited ABN 90 135 531 341 annual report 2017
Notes to the consolidated financial statements
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1 Summary of significant accounting policies
b) Principles of consolidation
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.
The financial report was authorised for issue by
the directors on 27 September 2017.
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 Directors believe it is appropriate to
prepare the consolidated financial report on
a going concern basis, which contemplates
realisation of assets and settlement of liabilities
in the normal course of business. As disclosed
in the financial report, the group has incurred a
loss after tax for the year of $1,085,492 (2016:
$890,079) and net operating cash outflow of
$573,382 (2016: $325,062). At 30 June 2017, the
Group had net current assets of $859,216 (30
June 2016: $555,325).
Tranche #1 of a capital raising was completed
on 27 September 2017 resulting in Renascor
receiving a total of $2,051,867 (before costs).
This has provided Renascor with sufficient cash
balances to fund operations for at least 12
months from the signing of these statements
and therefore supports the going concern basis
of preparation.
(i) Subsidiaries
The consolidated financial statements
incorporate the assets and liabilities of all
subsidiaries of Renascor Resources Limited
(‘company’) as at 30 June 2017 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
Interest Revenue
continued
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.
(ii) Transactions and balances
Foreign currency transactions are translated
into the functional currency using the exchange
rates prevailing at the dates of the transactions.
Foreign exchange gains and losses resulting
from the settlement of such transactions and
from the translation at year end exchange rates
of monetary assets and liabilities denominated
in foreign currencies are recognised in profit or
loss, except when they are deferred in equity as
qualifying cash flow hedges and qualifying net
investment hedges or are attributable to part of
the net investment in a foreign operation.
Foreign exchange gains and losses that relate
to borrowings are presented in profit or loss,
within finance costs. All other foreign exchange
gains and losses are presented in profit or loss
on a net basis within other income or other
expenses.
d) Revenue recognition
Revenue is measured at the fair value of the
consideration received or receivable. Amounts
disclosed as revenue are net of returns, trade
allowances and duties and taxes paid. The
following specific recognition criteria must also
be met before revenue is recognised:
Interest income is recognised on a time
proportion basis using the effective interest
method.
Government Grants
Grants from the government are recognised
at their fair value where there is reasonable
assurance that the grant will be received and
the Group will comply with all the attached
conditions. Government grants relating to
costs are deferred and recognised in profit
or loss over the period necessary to match
them with the costs that they are intended
to compensate. Government grants relating
to exploration and evaluation expenditure
are offset against exploration and evaluation
assets.
e) Cash and cash equivalents
For the purpose of presentation in the
statements of cash flows, cash and cash
equivalents includes cash on hand, deposits
held at call with financial institutions, other
short-term and highly liquid investments with
original maturities of three months or less that
are readily convertible to known amounts of
cash and which are subject to an insignificant
risk of changes in value.
f) Trade receivables
Trade and other receivables are recognised
initially at cost less any impairment losses.
Trade and other receivables are generally
due for settlement within 30 days. They are
presented as current assets unless collection
is not expected for more than 12 months after
the reporting date.
g) Income tax
The income tax expense or revenue for the
period is the tax payable on the current
period’s taxable income based on the
applicable income tax rate for each jurisdiction
adjusted by changes in deferred tax assets and
liabilities attributable to temporary differences
and to unused tax losses.
40
Renascor Resources Limited ABN 90 135 531 341 annual report 2017
Notes to the consolidated financial statements
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1 Summary of significant accounting policies
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.
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Notes to the consolidated financial statements
1 Summary of significant accounting policies
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
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.
42
Renascor Resources Limited ABN 90 135 531 341 annual report 2017
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.
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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 28.
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.
43
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
29 has been prepared on the same basis as the
consolidated financial statements, except as set
out below.
(i) Investments in subsidiaries
IInvestments 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 2017
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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 27).
(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.
44
Renascor Resources Limited ABN 90 135 531 341 annual report 2017
Notes to the consolidated financial statements
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2 Financial risk management
TThe 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
Other receivables
Financial liabilities at amortised cost
Trade and other payable
Consolidated
30 June 2017
$
30 June 2016
$
1,230,213
39,076
862,488
154,720
1,269,289
1,017,208
284,225
284,225
345,763
345,763
a) Market risk
(i) Cash flow and fair value interest rate risk
As at 30 June 2017 and 30 June 2016, 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 2017
30 June 2016
Weighted
average
interest rate
%
2.2%
- %
- %
Weighted
average
interest rate
%
1.8 %
- %
- %
Balance
$
1,230,213
39,076
(284,225)
945,064
Balance
$
862,488
154,720
(345,763)
671,445
Cash and cash equivalents
Other receivables
Trade and other payables
Net exposure to cash flow
interest rate risk
45
Renascor Resources Limited ABN 90 135 531 341 annual report 2017
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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 2017
Financial assets
Cash and cash equivalents
Other receivables
1,230,213
39,076
(12,302)
-
Financial liabilities
Trade and other payables
(284,225)
-
Total increase/(decrease)
945,064
(12,302)
-
-
-
-
12,302
-
-
12,302
-
-
-
-
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
-
-
-
-
46
Renascor Resources Limited ABN 90 135 531 341 annual report 2017
Notes to the consolidated financial statements
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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. For banks and financial institutions, only independently rated
parties with a minimum rating of ‘A’ are accepted. The majority of cash and cash equivalents is held with
a single financial institution.
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:
Cash and cash equivalents
Minimum rating of A
Total cash and cash equivalents
c) Liquidity risk
Consolidated
30 June 2017
$
30 June 2016
$
1,230,213
1,230,213
862,488
862,488
Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and
the availability of funding through an adequate amount of committed credit facilities to meet obligations
when due and close out market positions. At the end of each reporting period the Group held deposits
at call of $1,230,213 (2016: $862,488) 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 2017
$
Trade payables
(345,763)
(284,225)
$
-
-
$
-
-
$
-
-
$
-
-
$
$
(345,763)
(345,763)
(284,225)
(284,225)
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 2016
$
Trade payables
(345,763)
Total
(345,763)
$
-
-
$
-
-
$
-
-
$
-
-
$
$
(345,763)
(345,763)
(345,763)
(345,763)
47
Renascor Resources Limited ABN 90 135 531 341 annual report 2017
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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 10.
ii) Going Concern
The Directors believe it is appropriate to prepare the consolidated financial report on a going concern
basis, which contemplates realisation of assets and settlement of liabilities in the normal course of
business. As disclosed in the financial report, the group has incurred a loss after tax for the year of
$1,085,492 (2016: $890,079) and net operating cash outflow of $573,382 (2016: $325,062). At 30 June
2017, the Group had net current assets of $859,216 (30 June 2016: $555,325).
Tranche #1 of a capital raising was completed on 27 September 2017 resulting in Renascor receiving
a total of $2,051,867 (before costs). This has provided Renascor with sufficient cash balances to fund
operations for at least 12 months from the signing of these statements and therefore supports the going
concern basis of preparation.
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 graphite, 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.
48
Renascor Resources Limited ABN 90 135 531 341 annual report 2017
Notes to the consolidated financial statements
5 Revenue and Other Income
a) Revenue
Interest income
b) Other Income
Sundry Income
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
Employee benefits expense
Employee share based payments expense
Defined contribution superannuation expense
s
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Consolidated
30 June 2017
$
30 June 2016
$
40,898
27,996
-
-
12,000
12,000
Consolidated
30 June 2017
$
30 June 2016
$
426
2,574
3,000
-
374,343
374,343
293,641
-
47,505
341,146
771
3,387
4,158
-
265,602
265,602
373,431
53,724
427,155
Minimum office lease payments
30,596
30,596
49
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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 11)
(Decrease) increase in deferred tax liabilities (note 15)
Consolidated
30 June 2017
$
30 June 2016
$
-
-
-
-
-
-
339,008
(339,088)
-
240,978
(240,978)
b) Numerical reconciliation of income tax expense to
prima facie tax payable
Profit/(Loss) from continuing operations before income tax expense
(1,085,492)
Tax at the Australian tax rate of 27.5% (2016: 30%)
(298,510)
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
-
(7,323)
112
-
-
305,721
-
(890,079)
(267,024)
(36,407)
53
-
-
303,377
Income tax expense
c) Tax losses
Unused tax losses for which no deferred tax asset has
been recognised
Potential tax benefit @ 27.5% (2016: 30%)
d) Unrecognised temporary differences
Temporary differences for which deferred tax assets have not
been recognised:
Temporary differences
Potential tax benefit @ 27.5% (2016: 30%)
298,510
267,024
-
-
9,656,857
8,780,729
2,655,636
2,634,219
-
-
-
-
50
Renascor Resources Limited ABN 90 135 531 341 annual report 2017
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
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Consolidated
30 June 2017
$
30 June 2016
$
1,230,213
862,488
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 – Other receivables
GST refundable
Research & Development Tax Concession receivable
Sundry receivables
a) Fair value risk
Consolidated
30 June 2017
$
30 June 2016
$
38,776
-
300
39,076
33,064
121,656
300
154,720
Due to the short-term nature of current receivables, their carrying amount is assessed to approximate
their fair value.
10 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 2017
$
30 June 2016
$
5,977,605
-
(374,343)
(26,628)
-
1,756,391
7,333,025
3,534,046
2,238,605
(265,603)
(121,356)
-
591,913
5,977,605
# 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 $432,100 of internal personnel costs (2016: $461,623) and
management fees for joint venture tenements of $62,439 (2016: $45,931) 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.
51
Renascor Resources Limited ABN 90 135 531 341 annual report 2017
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Notes to the consolidated financial statements
11 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 2017
$
30 June 2016
$
6,679
64,596
85,035
-
1,353,607
8,027
60,827
66,553
179,970
855,532
1,509,917
1,170,909
Set off of deferred tax liabilities pursuant to set off provisions (note 15)
(1,509,917)
(1,170,909)
Net deferred tax assets
Movements:
Opening balance at 1 July
Credited to profit or loss
Closing balance at 30 June
12 Current liabilities – Trade and other payables
Trade payables
Sundry creditor and accrued expenses
Other payables
-
1,170,909
339,008
929,932
240,978
1,509,917
1,170,909
Consolidated
30 June 2017
$
30 June 2016
$
109,237
174,988
-
168,819
176,944
-
284,225
345,763
52
Renascor Resources Limited ABN 90 135 531 341 annual report 2017
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13 Current liabilities – Provisions
Employee benefits
Consolidated
30 June 2017
$
30 June 2016
$
136,811
132,007
Provision for employee benefits is made for annual leave owed as at 30 June 2017.
14 Non-current liabilities – Provisions
Employee benefits
Consolidated
30 June 2017
$
30 June 2016
$
98,082
70,750
Provision for employee benefits is made for long service leave as at 30 June 2017.
15 Non-current liabilities – Deferred tax liabilities
The balance comprises temporary differences attributable to:
Assessable temporary differences
- Exploration and evaluation expenditure
Total deferred tax liabilities
Consolidated
30 June 2017
$
30 June 2016
$
1,509,917
1,170,910
1,509,917
1,170,910
Set off of deferred tax liabilities pursuant to set off provisions (note 11)
(1,509,917)
(1,170,910)
Net deferred tax liabilities
Movements:
Opening balance at 1 July
Charged to profit or loss
Closing balance at 30 June
-
-
1,170,909
(339,008)
929,932
(240,978)
1,509,917
1,170,910
53
Renascor Resources Limited ABN 90 135 531 341 annual report 2017
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Notes to the consolidated financial statements
16 Contributed equity
a) Share capital
Ordinary shares (b),(c)
Fully paid
30 June 2017
Shares
30 June 2016
Shares
30 June 2017
$
30 June 2016
$
482,793,861
284,466,527
18,628,616
13,235,479
b) Movements in ordinary share capital:
Date
Details
Notes
Number
of shares
Issued
price
$
1 July 2015 Opening balance
194,839,488
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 2016 Balance
284,466,527
11 July 2016 Part consideration on acquisition
of EPM – Ordinary shares issued.
11 Jul 2016
11 Jul 2016
Conditional placement to directors and
professional & sophisticated investors.
Exercise of Performance Rights –
Ordinary shares issued.
25 Aug 2016 Exercise of Listed Options –
Ordinary shares issued.
6 Oct 2016
Exercise of Listed Options –
Ordinary shares issued.
38,666,667
$0.016
618,667
39,266,668
$0.015
589,000
600,001
32,500
$Nil
$0.03
-
975
46,487,767
$0.03
1,394,633
10 Oct 2016 Underwriter’s shortfall re exercise of
Listed Options – Ordinary shares issued. 17,871,714 $0.03
536,152
21 Oct 2016 Underwriter’s optional placement to
sophisticated investors –
Ordinary shares issued.
5 Dec 2016
Underwriter’s optional placement to
Bizzell Capital Partners –
Ordinary shares issued.
5 Dec 2016
Consideration on completion acquisition
of EPM – Ordinary shares issued.
Less: Transaction costs arising on
share issues, net of tax
30 June 2017 Balance
482,793,861
54
10,733,333
$0.03
322,000
2,600,000
$0.03
78,000
42,068,684
$0.0485
2,040,000
(186,290)
18,628,616
Renascor Resources Limited ABN 90 135 531 341 annual report 2017
Notes to the consolidated financial statements
Notes to the consolidated financial statements
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16 Contributed equity continued
c) Ordinary shares
Ordinary shares entitle the holder to participate in dividends and the proceeds on winding up of the
Company in proportion to the number of and amounts paid on the shares held.
On a show of hands every holder of ordinary shares present at a meeting in person or by proxy, is
entitled to one vote, and upon a poll each share is entitled to one vote.
d) Listed Options
Balance at 30 June 2016
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 2016 pursuant to a Placement.
Issued on 11 July 2016 pursuant to a Placement.
Underwritten exercise of Options
Balance at 30 June 2017
30 June 2017
30 June 2016
54,575,313
-
-
-
-
9,816,668
(64,391,981)
-
12,500,000
26,225,310
4,000,000
11,850,003
-
-
-
54,575,313
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 28.
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.
55
Renascor Resources Limited ABN 90 135 531 341 annual report 2017
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Notes to the consolidated financial statements
17 Reserves and accumulated losses
a) Reserves
Business Combination
Share based payments
Movements:
Share-based payments
Balance 1 July
Listed options issued
Performance rights granted
Balance 30 June
Options 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.
Amount recognised during the period for Unlisted Options issued
to the vendors as part of the consideration on the acquisition of
EPM (refer note 24)
Business Combination
Balance 1 July
Business Combination Reserve at acquisition of 100% of EPM
(refer note 24)
Balance 30 June
Consolidated
30 June 2017
$
30 June 2016
$
(1,417,790)
1,400,629
-
1,041,506
1,041,506
-
359,123
1,026,312
15,194
-
(1,400,629)
1,041,506
-
15,194
359,123
359,123
-
5,194
-
(1,417,790)
(1,417,790)
-
-
-
b) Nature and purpose of reserves
i) Share-based payments
The share-based payments reserve is used to recognise the fair value of equity instruments issued to
directors, executives, consultants and others.
ii) Business Combination
The Business Combination reserve is used to recognise the difference between the value of
consideration paid to acquire the non-controlling interests and value of the non-controlling interest.
56
Renascor Resources Limited ABN 90 135 531 341 annual report 2017
Notes to the consolidated financial statements
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18 Dividends
The directors did not declare a dividend for the June 2017 period.
Franking credits available for subsequent financial years
based on a tax rate of 27.50% (2016: 30%)
-
-
Consolidated
30 June 2017
$
30 June 2016
$
19 Key management personnel disclosures
a) Key management personnel compensation
Short-term employee benefits
Long-term benefits
Post-employment benefits
Share-based payments 1
Consolidated
30 June 2017
$
30 June 2016
$
713,244
27,333
46,844
81,500
868,921
793,567
28,116
56,204
66,500
944,387
1 NEDSP shares for director fees sacrificed by non-executive directors from 1 April 2016 to 30 June 2017
to be issued during the next financial year.
b) Details of remuneration
Details of the remuneration of each director of the Company and each of the other key management
personnel of the Group, including their personally related entities, are set out in the remuneration report
on pages 22 to 29.
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 $133,900
(2016: $54,134) from Euro which has been capitalised as Exploration Expenditure during the financial
year. An amount of $1,846 (2016: $5,235) was owing to Euro at 30 June 2017.
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
$69,850 (2016: $72,600) from CGAA of which $69,850 (2016: $72,600) has been capitalised as Exploration
Expenditure during the financial year. An amount of $4,235 (2016: $11,330) was owing to CGAA at
30 June 2017.
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. The services provided are
based on normal commercial terms and conditions. During the financial year the Company incurred
costs of $170,687 (2016: $72,660) from BCP which was included as a cost of the capital raising during the
financial year. An amount of $Nil (2016: $Nil) was owing to BCP at 30 June 2017.
57
Renascor Resources Limited ABN 90 135 531 341 annual report 2017
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Notes to the consolidated financial statements
19 Key management personnel disclosures continued
c) Other transactions with key management personnel
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 $5,100 (2016: $6,770) from Arion Legal
of which $5,100 was included as a legal expense during the financial year. An amount of $Nil (2016: $Nil)
was owing to Arion Legal at 30 June 2017.
Mr R Keevers was a director and also had an equity interest in Eyre Peninsula Minerals Pty Ltd (EPM)
during the acquisition of EPM by the Company. As part of the acquisition of EPM the Company had an
agreement with EPM and EPM’s shareholders to acquire up to 100% of EPM in exchange for exploration
expenditure and shares and options in Renascor. Following approval given by its shareholders at the
Annual General Meeting held on 25 November 2016, the Company completed the acquisition of EPM on
the 5th December 2016. (See note 24, in the notes to the consolidated financial statements. for details).
Mr Keevers received a total of 42,167,525 shares and 7,834,399 options exercisable at $0.05 expiring on 5
December 2016 in connection with acquisition securities issued to EPM shareholders.
20 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:
Amounts paid/payable to a related practice of the auditor for
expert and valuation services in relation to the acquisition of
Eyre Peninsula Minerals Pty Ltd
Total remuneration for taxation services
Total auditors’ remuneration
Consolidated
30 June 2017
$
30 June 2016
$
30,593
30,593
35,579
35,579
4,526
7,076
24,000
28,526
59,119
-
7,076
42,655
58
Renascor Resources Limited ABN 90 135 531 341 annual report 2017
Notes to the consolidated financial statements
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21 Commitments and contingent liabilities
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
Consolidated
30 June 2017
$
30 June 2016
$
1,185,195
477,500
1,756,447
585,259
1,662,695
2,341,706
To keep tenements in good standing, work programs should meet certain minimum expenditure
requirements. If the minimum expenditure requirements are not met, the Company has the option to
negotiate new terms or relinquish the tenements. The Company also has the ability to meet expenditure
requirements by joint venture or farm-in agreements.
Exploration and mining lease contingent liabilities
The Group has previously entered into Asset Sale Agreements with Hillment Pty Ltd to acquire tenement
EL 4570 and a similar agreement with Hiltaba Gold Pty Ltd for EL4707. Under each agreement, the
company has granted a 1% royalty of the Net Smelter Return. The timing and amount of any financial
effect relating to these agreements are dependent on the successful exploration and subsequent
exploitation of the associated tenements.
Operating Lease Commitments
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.
22 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 23.
c) Key management personnel
Disclosures relating to key management personnel are set out in note 19.
59
Renascor Resources Limited ABN 90 135 531 341 annual report 2017
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Notes to the consolidated financial statements
23 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 1
Australia
Australia
Australia
Australia
Class of
Shares
Ordinary
Ordinary
Ordinary
Ordinary
Enquity holding
2017
%
100
100
100
100
2016
%
100
100
100
20
1
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. Following approval given by its
shareholders at the Annual General Meeting held on 25 November 2016, the Company completed the acquisition of EPM on the 5th December
2016. (See note 24, in the notes to the consolidated financial statements. for details). Mr Keevers received a total of 42,167,525 shares and
7,834,399 options exercisable at $0.05 expiring on 5 December 2019 in connection with acquisition securities issued to EPM shareholders.
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
Eyre Peninsula Minerals Pty Ltd
Summarised Financial Position
Current assets
Non-current assets
Current liabilities
Non-current liabilities
NET ASSETS
Carrying amount of non-controlling interests
2016 $
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
5 December 2016 when the acquisition was completed.
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Notes to the consolidated financial statements
24 Business Combinations
Eyre Peninsula Minerals Pty Ltd
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 granted the Company two
additional options pursuant to which the Company could 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. From completion of the earn-in, the activities and strategic direction
of EPM were controlled by the management committee. Pursuant to the EPM JV Agreement, the
Company had 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 11 July 2016, the Company 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, taking the Company’s holding
in EPM to 49%.
On 5 December 2016, the Company completed the acquisition of the remaining 51% of EPM, approved
by shareholder at the Company’s AGM held on 25 November 2016, with the issue of 42,068,684
ordinary shares and 15,000,000 unlisted options exercisable at a price of $0.05 and expiring on 5
December 2019. The options have been valued at $359,123 using the Black Scholes method based on a
volatility of 144.39%, risk free rate of 2.7% and share price of $0.032 on the date of issue.
Reconciliation of Business Combination Reserve
The business combination reserve represents the difference between the value of net assets acquired
at the date of control, and total consideration provided for the shares of EPM.
Transaction
Opening Balance
11 July 2016
5 December 2016
Closing Balance
Value of
consideration
400,000
618,667
2,399,123
3,417,790
Shares
acquired
%
Business Non-controlling
Interest
Combination
Reserve
20%
29%
51%
-
1,600,000
(38,667)
(580,000)
(1,379,123)
(1,020,000)
100%
1,417,790
-
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Notes to the consolidated financial statements
25 Events occurring after the reporting period
On 20 September 2017, the Company announced that it has received firm commitments from
professional and sophisticated investors for a placement to raise approximately $3 million (before costs)
(Placement). Proceeds from the Placement will be applied to advance Renascor’s world class Siviour
Graphite Project toward production.
The placement will be completed via the issue of up to approximately 179.5 million fully paid ordinary
shares in the Company at a price of $0.017 per share, in two tranches. All shares issued under the
Placement will include one attaching option for every two new shares issued. The options, subject
to shareholder approval, will have an exercise price of $0.03, will be exercisable any time prior to 31
October 2019, and are expected to be quoted on ASX, subject to satisfying ASX criteria.
Tranche #1 of the Placement was completed on 27 September 2017 resulting in Renascor receiving
a total of $2,051,867 (before costs). This has provided Renascor with sufficient cash balances to fund
operations for at least 12 months from the signing of these statements.
There has not been any other matter or circumstance that has arisen since the end of the reporting
period that has significantly affected, or may significantly affect, the operations of the consolidated entity
or the state of affairs of the consolidated entity in future periods.
26 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 other receivables
(Increase) / decrease in other assets
Increase / (decrease) in trade and other payables
Increase / (decrease) in provisions
Consolidated
30 June 2017
$
30 June 2016
$
(1,085,492)
3,000
-
26,628
374,343
(890,079)
4,158
-
190,942
265,602
-
66,500
115,644
4,925
(44,567)
32,137
(7,524)
7,467
47,725
(9,852)
Net cash inflow / (outflow) from operating activities
(573,382)
(325,061)
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)
Shares and options issued to Vendors of EPM for no cash
consideration in respect of the acquisition of EPM.
(2,658,667)
-
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
-
(66,500)
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Notes to the consolidated financial statements
27 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 2017
Cents
30 June 2016
Cents
(0.2)
(0.2)
(0.2)
(0.2)
(0.4)
(0.4)
(0.4)
(0.4)
Consolidated
30 June 2017
$
30 June 2016
$
(1,085,492)
(1,085,492)
(890,079)
(890,079)
Consolidated
30 June 2017
Number
30 June 2016
Number
440,830,590
229,059,984
-
Weighted average number of ordinary shares and potential ordinary
shares used as the denominator in calculating diluted earnings per share
440,830,590
229,059,984
* 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 28.
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Notes to the consolidated financial statements
28 Share-based payments
a) Share based payments to directors, executives and consultants
At the AGM held on 27 November 2014, shareholders approved the Non-Executive Directors Share Plan
(NEDSP) for non-executive directors to receive up to 50% of their compensation in shares in the Company.
Commencing on 1 October 2014, non-executive directors have received payment for 50% of their director
fees with the balance to be issued in shares pursuant to the NEDSP. During the year ended 30 June 2017,
50% of non-executive director fees were withheld by the Company pursuant to the NEDSP, but as at 30
June 2017, the NEDSP shares relating to the period 1 April 2016 to 30 June 2017 remain to be issued.
There are no options that have been granted to directors, senior management and consultants:
There was no amount of the equity settled share-based payment recognised in the current period in
respect of options granted to directors and executives (2016: $Nil).
There was no amount of the equity settled share-based payment recognised in the current period in
respect of options granted above to consultants (2016: $Nil).
Set out below are summaries of performance rights granted to directors and senior management:
Performance Rights
Grant
date
Expiry
date
Exercise
price
Consolidated – 2017
28 Feb 2014 28 Feb 2021
30 Nov 2012 30 Nov 2019
$Nil
$Nil
Total
Consolidated – 2016
28 Feb 2014 28 Feb 2021
30 Nov 2012 30 Nov 2019
$Nil
$Nil
Total
Balance
start of
the year
Number
Granted
during
the year
Number
105,001
495,000
600,001
116,667
550,000
666,667
-
-
-
-
-
-
Exercised
during
the year
Number
105,001
495,000
600,001
Lapsed
during
the year
Number
Balance
at end of
the year
Number
Vested &
exercisable
at end of
the year
Number
-
-
-
-
-
-
-
-
-
-
-
-
(11,666)
(55,000)
105,001
495,000
105,001
495,000
(66,666)
600,001
600,001
There was no weighted average remaining contractual life of the above performance rights outstanding at
the end of the period (2016: Nil 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 (2016: $Nil).
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Notes to the consolidated financial statements
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28 Share-based payments continued
b) Exploration and evaluation share based payments
During the year ended 30 June 2017, the Company issued 80,735,351 ordinary shares and 15,000,000
unlisted options @ $0.05 and expiring on 30 September 2019, as consideration for the acquisition of
Eyre Peninsula Minerals Pty Ltd.
The amount of the equity settled share-based payment recognised in the current period in respect of
the ordinary shares issued is $2,658,667 (2016: $234,000). 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
2017
Consolidated – Listed Options
26 Feb 2016
30 Sep 2016 $0.03
Balance at
start of
the year
Number
Granted
during
the year
Number
Exercised
during
the year
Number
Forfeited
during
the year
Number
Balance
at end of
the year
Number
Vested &
exercisable
at end of
the year
Number
4,000,000
-
4,000,000
-
-
-
2017
Consolidated – Unlisted Options
5 Dec 2016
5 Dec 2019
$0.05
-
15,000,000
Total
4,000,000
15,000,000
-
-
Weighted average exercise price
$0.03
$0.05
$0.03
-
-
$-
15,000,000 15,000,000
15,000,000 15,000,000
$0.05
$0.05
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 at
start of
the year
Number
Granted
during
the year
Number
Exercised
during
the year
Number
Forfeited
during
the year
Number
Balance
at end of
the year
Number
Vested &
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
The weighted average remaining contractual life of the above share options outstanding at the end of
the period was 2.50 years (2016: 0.25 years).
The amount of the equity settled share-based payment recognised in the current period in respect
of the options granted above $359,123 (2016: $15,194). 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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Notes to the consolidated financial statements
28 Share-based payments continued
d) Fair value of unlisted options 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 2017:
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
05/12/2016
05/12/2019
$0.05
3 years
$0.032
144.39%
2.70%
15,000,000
$0.0239
$359,123
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, 15,000,000 unlisted options were granted, 4,000,000 listed
options were exercised. 600,001 performance rights were exercised.
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Notes to the consolidated financial statements
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29 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 2017
$
30 June 2016
$
1,280,151
9,314,296
983,082
4,659,611
10,594,447
5,642,693
421,036
98,082
519,118
428,496
70,750
454,946
10,075,329
5,143,448
18,628,616
1,400,629
(9,953,916)
13,235,479
1,041,506
(9,133,537)
10,075,329
5,143,448
(820,378)
(820,378)
(864,884)
(864,884)
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 2017.
c) Contractual commitments for the acquisition of property, plant or equipment
As at 30 June 2017, the Parent Entity had no contractual commitments for the acquisition of property,
plant or equipment.
d) Guarantees
As at 30 June 2017, the Parent Entity had not guaranteed the debts of any subsidiary Company.
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Notes to the consolidated financial statements
30 Application of new and revised Accounting Standards
Adoption of New and Revised Accounting Standards
In the current year, the Group has adopted all of the new and revised Standards and Interpretations
issued by the Australian Accounting Standards Board (the AASB) that are relevant to its operations and
effective for the current annual reporting period. The adoption of these standards did not have any
impact on the current period or any prior period and is not likely to affect future periods.
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 2017. 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 15 Revenue from
1 January 2018
30 June 2019
The entity is yet to undertake a detailed
Contracts with Customers
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 for the year ending 30 June
2019.
AASB 16 Leases
1 January 2019
30 June 2020
The entity is yet to undertake a detailed
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 for the year ending 30 June
2020.
When these amendments are first adopted for
the year ending 30 June 2018, there will be no
material impact on the financial statements.
When these amendments are first adopted for
the year ending 30 June 2018, there will be no
material impact on the financial statements.
When these amendments are first adopted for
the year ending 30 June 2019, there will be no
material impact on the financial statements.
AASB 2016-1 Amendments to
1 January 2017
30 June 2018
Australian Accounting Standards
– Recognition of Deferred Tax
Assets for Unrealised Losses
AASB 2016-2 Amendments
1 January 2017
30 June 2018
to Australian Accounting
Standards – Disclosure Initiative:
Amendments to AASB 107
AASB 2016-5 Amendments
1 January 2017
30 June 2018
to Australian Accounting
Standards – Classification and
Measurement of Share-based
Payment Transactions
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Renascor Resources Limited ABN 90 135 531 341 annual report 2017
Directors’ declaration
In the directors’ opinion:
a) the financial statements and notes set out on pages 34 to 68 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 2017 and of its
performance for the financial year ended on that date, and
b) the remuneration disclosures included on pages 22 to 29 of the directors’ report (as part
of the audited Remuneration Report) for the year ended 30 June 2017, 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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David Christensen
Director
Adelaide
Date: 28 September 2017
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Renascor Resources Limited ABN 90 135 531 341 annual report 2017
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
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF RENASCOR RESOURCES LIMITED
Report on the Audit of the Financial Report
Opinion
We have audited the financial report of Renascor Resources Limited (the Company) and its
subsidiaries (the Group), which comprises the consolidated statement of financial position as at 30
June 2017, 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, and notes to the financial report, including a summary of significant accounting
policies and the directors’ declaration.
In our opinion the accompanying financial report of the Group, is in accordance with the
Corporations Act 2001, including:
(i)
(ii)
Giving a true and fair view of the Group’s financial position as at 30 June 2017 and of its
financial performance for the year ended on that date; and
Complying with Australian Accounting Standards and the Corporations Regulations 2001.
Basis for opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities
under those standards are further described in the Auditor’s Responsibilities for the Audit of the
Financial Report section of our report. We are independent of the Group in accordance with the
Corporations Act 2001 and the ethical requirements of the Accounting Professional and Ethical
Standards Board’s APES 110 Code of Ethics for Professional Accountants (the Code) that are
relevant to our audit of the financial report in Australia. We have also fulfilled our other ethical
responsibilities in accordance with the Code.
We confirm that the independence declaration required by the Corporations Act 2001, which has
been given to the directors of the Company, would be in the same terms if given to the directors as
at the time of this auditor’s report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our opinion.
Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most significance
in our audit of the financial report of the current period. These matters were addressed in the
context of our audit of the financial report as a whole, and in forming our opinion thereon, and we
do not provide a separate opinion on these matters.
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 2017
Recoverability of exploration and evaluation assets.
Key Audit Matter
How the matter was addressed in our audit
The Group carries significant exploration
Our procedures, amongst others, included:
and evaluation assets of $7,333,025 as at 30
June 2017 as disclosed in note 10 to the
Evaluating management’s assessment of whether
impairment indicators in accordance with AASB 6
financial statements.
Exploration for and Evaluation of Mineral Resources
The carrying value of exploration and
have been identified across the Group’s exploration
evaluation assets represents a significant
projects.
asset of the group and assessing whether
facts or circumstances exist to suggest that
impairment indicators were present, and if
present, whether the carrying amount of
this asset may exceed its recoverable
amount.
This assessment involves significant
judgement applied by management and was
considered key to the audit.
Verifying a sample of current tenement licences to
determine whether the group has the rights to tenure
and maintain the tenements in good standing.
Obtaining the exploration budget for the 2018
financial year to assess whether there is reasonable
forecasted expenditure to confirm continued
exploration spend for the projects.
Reviewing ASX announcements and Board meeting
minutes for the year and subsequent to year end for
exploration activity to identify any indicators of
impairment.
For each area of interest where impairment
indicators existed, we considered the completeness
and accuracy of amounts impaired.
Acquisition of Non-Controlling Interest in Eyre Peninsula Minerals
Key Audit Matter
How the matter was addressed in our audit
The Group’s disclosures in respect to the
Our procedures, amongst others, included:
acquisition of a non-controlling interest in
Eyre Peninsula Minerals are included in
Notes 24 of the financial statements.
Obtaining the underlying agreement for the
acquisition of Eyre Peninsula Minerals and assessed
whether the key terms were considered in
The audit of the acquisition accounting is a
determining the accounting treatment of the
key audit matter due to the extent of
acquisition transactions.
judgement and complexity involved in
assessing accounting treatment, and the
significance of transaction to the Group.
Assessing the valuation of consideration paid for the
non-controlling interest, including consideration of
the methodology used, assessing the reasonableness
of management judgements and inputs in the
valuation model and compliance with AASB 2 Share-
based payment.
Assessing the adequacy of disclosure of these
transactions in the financial statements.
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Renascor Resources Limited ABN 90 135 531 341 annual report 2017
Going Concern
Key Audit Matter
How the matter was addressed in our audit
Note 3(ii) of the financial statements outlines the
Our procedures, amongst others, included:
basis of preparation of the financial statements
which indicates being prepared on a going concern
basis and no material uncertainty exists relating to
events or conditions that may cast significant doubt
on the group’s ability to continue as a going
concern.
As the group generates no revenue and is reliant on
funding from other sources such as capital raising,
there is significant judgement involved in
Obtaining and evaluating management’s
assessment of the group’s ability to continue as
a going concern
Assessing the cash flow forecasts provided by
management and challenged the assumptions
therein to ensure consistency with
management’s stated business and operational
objectives, and checked the calculation to
ensure the accuracy of the underlying financial
determining whether a material uncertainty relating
data;
to going concern exists and is critical to the
understanding of the financial statements as a
whole. As a result this matter was key to our audit.
Comparing the exploration expenditure in cash
flow forecasts to minimum expenditure
requirements in tenement schedules to ensure
these are being met; and
Vouching the receipt of funds from the capital
raising which closed on 27 September 2017
raising $2,051,867 before costs.
Other information
The directors are responsible for the other information. The other information comprises the
information contained in the Directors’ report for the year ended 30 June 2017, but does not
include the financial report and our auditor’s report thereon, which we obtained prior to the date
of this auditor’s report, and the Chairman’s letter to shareholders, review of operations and
shareholder information, which is expected to be made available to us after that date.
Our opinion on the financial report does not cover the other information and we do not express any
form of assurance conclusion thereon.
In connection with our audit of the financial report, our responsibility is to read the other
information identified above and, in doing so, consider whether the other information is materially
inconsistent with the financial report or our knowledge obtained in the audit or otherwise appears
to be materially misstated.
If, based on the work we have performed on the other information that we obtained prior to the
date of this auditor’s report, we conclude that there is a material misstatement of this other
information, we are required to report that fact. We have nothing to report in this regard.
When we read the Chairman’s letter to shareholders, review of operations and shareholder
information, if we conclude that there is a material misstatement therein, we are required to
communicate the matter to the directors and will request that it is corrected. If it is not corrected,
we will seek to have the matter appropriately brought to the attention of users for whom our report
is prepared.
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Responsibilities of the directors for the Financial Report
The directors of the Company are responsible for the preparation of the financial report that gives a
true and fair view in accordance with Australian Accounting Standards and the Corporations Act
2001 and for such internal control as the directors determine is necessary to enable the preparation
of the financial report that gives a true and fair view and is free from material misstatement,
whether due to fraud or error.
In preparing the financial report, the directors are responsible for assessing the ability of the group
to continue as a going concern, disclosing, as applicable, matters related to going concern and using
the going concern basis of accounting unless the directors either intend to liquidate the Group or to
cease operations, or has no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the Financial Report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is
free from material misstatement, whether due to fraud or error, and to issue an auditor’s report
that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee
that an audit conducted in accordance with the Australian Auditing Standards will always detect a
material misstatement when it exists. Misstatements can arise from fraud or error and are
considered material if, individually or in the aggregate, they could reasonably be expected to
influence the economic decisions of users taken on the basis of this financial report.
A further description of our responsibilities for the audit of the financial report is located at the
Auditing and Assurance Standards Board website at:
http://www.auasb.gov.au/auditors_files/ar2.pdf
This description forms part of our auditor’s report.
Report on the Remuneration Report
Opinion on the Remuneration Report
We have audited the Remuneration Report included in pages 6 to 12 of the directors’ report for the
year ended 30 June 2017.
In our opinion, the Remuneration Report of Renascor Resources Limited, for the year ended 30 June
2017, complies with section 300A of the Corporations Act 2001.
Responsibilities
The directors of the Company are responsible for the preparation and presentation of the
Remuneration Report in accordance with section 300A of the Corporations Act 2001. Our
responsibility is to express an opinion on the Remuneration Report, based on our audit conducted in
accordance with Australian Auditing Standards.
BDO Audit (SA) Pty Ltd
Andrew Tickle
Director
Adelaide, 28 September 2017
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Renascor Resources Limited annual report 2017
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Renascor Resources Limited ABN 90 135 531 341 annual report 2017
Renascor Resources Limited Shareholder information 30 June 2017
The shareholder information set out below was applicable as at 15 September 2017.
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 – 50,000
50,001 – 100,000
100,001 and over
Ordinary Shares Unlisted Options
Listed Options
30
17
69
300
169
437
1,022
–
–
–
–
–
11
11
–
–
–
–
–
–
–
* Holdings of 22,730 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
Ordinary Shares
Name
1 Mr Richard Edward Keevers
2 Mr David Vigolo
3 Mr Douglas Young
4 Rookharp Investments Pty Limited
5 Casalamada Pty Ltd
6 Slri Pty Limited
7 Dr Leon Eugene Pretorius
8 David Christensen
9 Mr Gregory Michael Josephson & Mrs Mary Margaret Josephson
10 St Lucia Resources Capital Fund Pty Limited
11 Cannc Consulting Pty Ltd
12 Mr Brian Laurence Eibisch
13 Geoffrey William Mcconachy
14 M & K Korkidas Pty Ltd
15 Bizzell Nominees Pty Ltd
16 Mrs Tracey Ann Mezzino
17 Mr John Stephen Finnemore & Mrs Leigh Finnemore
18 Clasm Pty Ltd
19 CPS Control Systems Pty Limited
20 Bizzell Capital Partners Pty Ltd
Total
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Number held
39,082,098
18,355,000
16,455,609
15,333,333
13,570,113
11,000,000
10,000,000
9,952,941
9,812,457
9,000,000
8,616,666
8,250,000
7,668,000
7,303,148
7,258,333
7,000,000
6,833,334
6,500,000
5,611,112
5,333,334
Percentage of
issued Shares
8.09%
3.80%
3.41%
3.18%
2.81%
2.28%
2.07%
2.06%
2.03%
1.86%
1.78%
1.71%
1.59%
1.51%
1.50%
1.45%
1.42%
1.35%
1.16%
1.10%
222,935,478
46.18%
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Renascor Resources Limited Shareholder information 30 June 2017
B. Equity security holders (continued)
Unquoted equity securities
Share options
# Number of unissued ordinary shares under the options.
There are no unlisted Performance Rights or unlisted options on issue.
C. Substantial holders
Substantial holders in the Company are set out below:
Name
Richard Keevers + related interests
Andrew Martin + related interests
Total
Name
Richard Keevers + related interests
Douglas I Young
Total
D. Voting rights
Number on
issue/granted
15,000,000 #
Number
of holders
11
Ordinary Shares
Number held
Percentage
42,167,525
24,626,665
66,794,180
8.73%
5.10%
13.83%
Unlisted Options
Number held
Percentage
7,834,399
3,057,324
10,891,723
52.23%
20.38%
72.61%
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
No restricted securities were on issue as at 15 September 2017.
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Renascor Resources Limited ABN 90 135 531 341 annual report 2017
Renascor Resources Limited Shareholder information 30 June 2017
F. Interests in Tenements
The Group held the following interests in tenements as at 15 September 2017:
Tenement
Name
% Interest
Application Grant Date
Expiry Date
Lodged
-
-
-
-
-
-
-
-
-
-
100 %
100 %
100 %
100 %
100 %
100 %
100 %
100 %
100 %
100 %
0% - Option to earn
100% interest
0% - Option to earn
100% interest
0% - Option to earn
100% interest
0% -OPption to earn
100% interest
04-Apr-16
03-Apr-18
08-May-13 07-May-18
22-Feb-16
21-Feb-18
15-Feb-17
14-Feb-19
28-Mar-16 27-Mar-18
17-Jan-12
16-Jan-17
7-Apr-15
6-Apr-19
10-Dec-14
09-Dec-18
10-Dec-14
09-Dec-18
01-May-13 30-Apr-18
05-Apr-13
04-Apr-18
29-Sep-14
28-Sep-17
29-Jan-15
28-Jan-18
05-Feb-16
04-Feb-18
South Australia
EL 5822
EL 5236
Iron Baron, SA
Old Wartaka, SA
EL 5859 (Prev 4675)
Gairdner, SA
EL 5927 (Prev 4836)
Lake Harris, SA
EL 5856 (Prev 4707)
Carnding, SA
EL 4822 1
EL 5586
EL 5585
EL 5584
EL 5228
EL 5204 #
Willouran, SA
Callana Area, SA
Cutana, SA
Outalpa, SA
Wompinie, SA
Malbrom, SA
EL 5495 2 #
Lipson Cove, SA
EL 5618 #
Verran, SA
EL 5714 #
Malbrom West, SA
# Tenement Holder – Ausmin Development Pty Ltd.
1 Tenement under subsequent renewal.
2 Tenement under renewal.
Western Australia
E74/538
Munglinup Project, WA
100 %
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
-
-
-
-
* Five year moratorium period ends on 10 October 2017.
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Notes
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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
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
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