Renascor Resources Limited annual report 2018
A Globally Significant Australian
Graphite Project
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Renascor Resources Limited annual report 2018
Contents
Chairman’s letter
Operating activities review
Directors’ report
Auditor’s independence declaration
Financial statements
Directors’ declaration
Independent auditor’s report
Shareholder’s information
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Corporate directory
inside back cover
‘Poised to be a major new supplier of
graphite to world’s new-energy market…’
Competent Persons Statement
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.
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.
Ore Reserve
The information in this document that relates to Ore Reserves 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).
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.
Chairman’s letter
Dear Shareholder,
I am very pleased to present Renascor’s annual report for the twelve-month period
ending 30 June 2018.
The past year has been a transformative year for Renascor, as we achieved several
breakthroughs that offer strong potential to advance the Siviour Graphite Project
from a promising development into a profitable long-term producer of high quality
graphite concentrates.
Key achievements during the year included:
• The Siviour Developmental Options Study. We completed a study assessing a
staged-development approach to Siviour. By taking advantage of Siviour’s
location in a developed coastal Australian location, we identified a promising low
CAPEX option to developing Siviour that also offers competitive economic returns.
• Siviour Pre-Feasibility Study (PFS). Following completion of the Siviour
Developmental Options Study, we completed a further study to PFS-standard
that assesses both an immediate large-scale and a staged-development strategy.
In both instances, the Siviour PFS demonstrates that Siviour offers exceptional
potential as a high-quality, high margin graphite project.
• Siviour Ore Reserve. With the completion of the Siviour PFS, Renascor announced
the maiden estimated Ore Reserves for the project in accordance with the JORC
Code 2012. With a Probable Reserve of 45.2Mt @ 7.9% TGC for 3.6Mt of contained
graphite, Siviour is the largest graphite reserves in Australia and amongst the
largest reported reserves in the world.
• Spherical Graphite Scoping Study. We completed a scoping study that suggests
Siviour offers potential to extract further value for shareholders by producing,
in addition to graphite concentrates from Siviour, a value-added spherical
graphite product for the growing lithium-ion battery market.
• Permitting and Approvals. We completed the mining lease application for
Siviour. This comprehensive document was based on extensive technical and
environmental studies and community consultations undertaken over the
last two years and represents a key step in permitting Siviour to move from
development into production.
• Offtake. We signed our first offtake agreement for Siviour and further established
Siviour’s potential as an emerging graphite producer with significant graphite
end-users in key markets.
In the current year, we will continue to develop Siviour, as we advance the project
through the Definitive Feasibility Study, further downstream opportunities and
offtake and prepare the company for Decision to Mine.
With the work undertaken last year, together with this year’s work programs and
favourable graphite market dynamics, we believe there is strong potential for
a re-rating of Renascor by the equity markets.
On behalf of the Board and my fellow shareholders, I thank our Managing Director
David Christensen and the entire Renascor team for their dedicated work during
an exciting year. I also offer 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 2018 Operating activities review
Company overview
Renascor Resources Limited (the Renascor) is an ASX-listed,
Australian-based company focused on the development of
economically viable deposits containing graphite and
other minerals.
Siviour Graphite Project
Renascor’s principal activity during
the financial year was exploration and
evaluation of the Siviour Graphite Project
near Arno Bay, South Australia.
Siviour Developmental Options Study
In October 2017, Renascor announced
the results of a development study that
assessed a staged-approach to developing
the Siviour Graphite Project. This study
showed that, in addition to offering impressive returns as a large-
scale operation, Siviour offers a competitive pathway to production
through a lower start-up capital, staged development.
Siviour Pre-Feasibility Study
Following completion of the Siviour Developmental Options Study,
Renascor commenced a Pre-Feasibility Study (PFS) to further
consider the economic viability of the Siviour Graphite Project in
two production scenarios:
•
•
immediate large-scale production, and
a low start-up capital, two-staged development approach, with a
small-scale operation, before transitioning to
larger-scale production.
The Siviour PFS was successfully completed in March 2018 and
confirmed the results of the Siviour Developmental Options Study
and the previously completed Siviour Scoping Study 1, confirming
that Siviour is a high-quality, high margin graphite project.2
4
1 See Renascor ASX announcement dated 23 May 2017.
2 See Renascor’s ASX announcement dated 14 March 2018.
Operating Activities Review
A summary of key results of the Siviour PFS is described below.
Material assumptions and other information are included in
Renascor’s ASX announcement dated 14 March 2018.
Parameter
Immediate
large-scale
development
Two-stage development
Stage-one
(year 1 to 3)
Stage-two
(year 4 to 30)3
Currency
US$
AU$
US$
AU$
US$
AU$
Annual production
142,000t (first ten years)
117,000 (LOM)
22,800t
156,000t (years 4 to 13)
129,000 (LOM)
Plant throughput
1,650,000tpa
200,000tpa
1,850,000tpa
Average feed grade
9.1% TGC (first ten years)
7.5% TGC (LOM)
12.4% TGC
Cash cost per tonne
US$335
AU$446
US$577
AU$768
9.0% TGC (years 4 to 13)
7.6% (LOM)
US$333
(LOM)
AU$444
(LOM)
Basket price per tonne
US$1,056 or AU$1,408
Life of mine
30 years
Development capital
US$99m
AU$132
US$29m
AU$39m
US$91m
AU$121m
Payback period (years) 4
1.8
3.1
1.5
NPV10 (after tax)
US$500m
AU$666m
US$407m or AU$542m5
IRR (after tax)
62%
47%
IRR (after tax)
3 Life of mine (LOM) figures for stage-two refer to life of stage-two operation (years 4 to 30).
4 Reflects period of time to payback development capital as calculated from first production for applicable period.
5 NPV10 for two-stage reflects lower net present value based on additional three years of discounting due to deferred large-scale start-up.
5
Renascor Resources Limited annual report 2018
Operating Activities Review
Siviour Ore Reserve
With the completion of the Siviour PFS, Renascor announced the
maiden estimated Ore Reserves for the project in accordance
with the JORC Code 2012. Siviour’s Reserve supports a long-life
mining operation and is amongst the world’s largest undeveloped
graphite reserves.
The Ore Reserve estimate for Siviour is summarized as follows:
Reserve
Category
Proven
Probable
Reserves total
Tonnes of
TGC
Tonnes of
ore
(Mt)
0
45.2
45.2
contained graphite
(Mt)
0
3.6
3.6
0
7.9%
7.9%
Additional information for the Ore Reserve is included Renascor’s
ASX announcement dated 14 March 2018.
The Mineral Resource estimate, in accordance with the 2012
JORC Code, was first reported to the ASX in March 2017 6 and is
presented as follows:
Resource
Category
Tonnes of
mineralisation
TGC
Tonnes of
contained graphite
Indicated
Inferred
Total
(Mt)
51.8
28.8
80.6
8.1%
7.6%
7.9%
(Mt)
4.2
2.2
6.4
6 See Renascor’s ASX announcement dated 14 March 2017.
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Operating Activities Review
Spherical Graphite Scoping Study
In February 2018, Renascor completed a Spherical Graphite Scoping
Study that assesses the potential viability of building a downstream
processing facility in South Australia to produce spherical graphite
from a portion of the graphite concentrates expected to be produced
at Siviour.7
Renascor commissioned the Spherical Graphite Scoping Study as
a potential means to extract further value for shareholders from
Siviour by producing, in addition to graphite concentrates from
Siviour, a value-added product that is in strong and growing demand
as a result of the burgeoning lithium-ion battery market. Potential
upside benefits from this option include:
•
•
A spherical graphite product is considered to be a highly sought-
after product which could be the subject of a robust sales
contract. This would in turn underpin the mining project by
securing offtake for a significant portion of the flake production.
An Australian-based source of spherical graphite, directly
connected to an Australian mine, could be considered a reliable
source of supply for anode material producers offering potentially
valuable diversity of supply.
• Greater sales revenue for the volume of concentrate spheronised.
A summary of key results is described below. Material assumptions
and other information are included in Renascor’s ASX announcement
dated 8 February 2018.
Annual production of spherical graphite
30,000t
Annual throughput of Siviour graphite
concentrates as feedstock
60,000t
Start-up capital cost of spherical operation
AU$77.1m
US$57.8m
NPV10 (after tax) of spherical operation
AU$307.5m
US$230.6m
IRR (after tax) of spherical operation
59.9%
Average spherical graphite cash operating
cost (net of recarburiser product credit) 8
AU$2,199/t
US$1,649/t
Projected spherical graphite sales price
AU$4,333/t
US$3,250/t
Table 3. Summary results of Spherical Graphite Scoping Study
7 See Renascor’s ASX announcement dated 8 February 2018.
8 Assumes sale of 30,000t per annum of recarburiser product at sales price of AU$933/US$700 per tonne.
Siviour graphite concentrates are assumed to be procured at production costs contemplated by the Concentrate
Scoping Study (Renascor ASX announcement dated 23 May 2017).
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Renascor Resources Limited annual report 2018
Operating Activities Review
Permitting and Approvals
South Australian law requires the preparation of a comprehensive Mining
Lease Application (MLA), including a supporting Mining Lease Proposal,
as a precondition to the granting of a Mining Lease to conduct mining
operations and sell minerals in South Australia.
During the financial year, Renascor and its technical and environmental
specialists undertook comprehensive environmental impact studies and
met with a range of stakeholders to discuss a proposed mine at Siviour.
The results of these studies and consultation were used to develop the
proposal to mine the Siviour Graphite Project
and formed the basis of the MLA lodged
in August 2018 with the South Australian
Government.9
Stakeholder engagement undertaken in
preparation of the MLA included consultation
with a wide range of parties, including
impacted landowners and occupiers,
the communities of Cleve and Arno Bay,
the District Council of Cleve, Regional
Development Australia Whyalla and
Eyre Peninsula, the Eyre Peninsula Mining, Oil and Gas Community
Development Taskforce, the South Australian Department for Energy and
Mining (formerly part of the Department of the Premier and Cabinet) and
State and Federal politicians.
Stakeholder views were taken into consideration in respect of the
design of the proposed mine and appropriate control and management
strategies were incorporated to address current or potential concerns.
In support of the MLA, Renascor commissioned extensive technical
and environmental risk and impact assessments, including in respect
of groundwater, surface water, air quality, traffic, noise, and flora and
fauna. These assessments set out proposed control and management
strategies to ensure there will be no adverse impacts on nearby sensitive
receptors, or the surrounding environment in general, as a result of the
proposed mining operations.
Prior to lodging the MLA, Renascor concluded an agreement with the
Siviour family, the owners of the property that hosts the Siviour Graphite
Deposit, to facilitate the development of the Siviour Graphite Resource.10
The Agreement with the Siviours ensures that Renascor will continue to
enjoy access rights to the Project area, and it grants Renascor the right to
acquire an option to purchase the land, with the price to be set following
an independent appraisal.
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9 See Renascor’s ASX announcement dated 28 August 2018.
10 See Renascor’s ASX announcement dated 22 August 2018.
Operating Activities Review
Offtake
In April 2018, Renascor signed a Memorandum of Understanding
(MOU) to provide graphite concentrates from the to China’s Qingdao
Chenyang Graphite (Chenyang).11
Chenyang is a one of the largest graphite companies in the Qingdao
area of China’s Shandong province. Qingdao is a well-established
graphite-supplying region in China and home to a variety of Chinese
companies involved in graphite mining, processing and trading.
Chenyang’s business activities are focused on
graphite processing and trading, producing
advanced graphite products for customers in
China, Japan and Korea.
The agreement with Chenyang provides
for the supply of graphite from Siviour in
accordance with Renascor’s proposed staged
development of Siviour, as contemplated by
the Siviour PFS.
During Stage 1, in which Renascor’s
estimated annual production is 22,800t per year, Renascor would
supply Chenyang with up 10,000t of graphite concentrates per year.
During Stage 2, in which Renascor’s annual production increases to
156,000t per year, the supply to Chenyang would increase to up to
30,000t per year.
The MOU between Chenyang and Renascor is non-binding and is
intended to provide a framework for further negotiations in relation
to price, product quality and other offtake parameters.
Additional marketing efforts during the financial year included
several meetings with Chenyang and other graphite end-users
active in multiple market segments, including industrial, spherical,
expandable and other high-value sectors.
11 See Renascor’s ASX announcement dated 26 April 2018.
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Renascor Resources Limited annual report 2018 Other Exploration and Evaluation Activity
In addition to its activities at the Siviour Graphite Project, Renascor
has maintained a strong exploration portfolio, identifying and
maintaining a strong pipeline of targets for development of copper,
gold, nickel, cobalt and other mineral assets.
Exploration activity completed during the financial year included, in
particular, cobalt and copper exploration programs undertaken at
Renascor’s Farina and Olary Projects in South Australia.
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Directors’ Report
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Directors’ Report
The directors present their report, together
with the financial statements, on the consolidated
entity (referred to hereafter as the ‘Group’)
consisting of Renascor Resources Limited (referred
to hereafter as the ‘Company’ or ‘parent entity’) and
the entities it controlled at the end of, or during,
the year ended 30 June 2018.
Dividends
There were no dividends paid, recommended
or declared during the current or previous
financial year.
Review of operations
Corporate and financial
For the year ended 30 June 2018, the loss for the
Group after providing for income tax amounted
to $3,434,543 (2017: $1,085,492). This included an
impairment write down of capitalised exploration
and evaluation expenditure of $2,305,666 (2017:
$374,343).
To support the Group’s exploration activities and
developing the Siviour Graphite Project, the Company
raised $9,988,299 (after capital raising costs) via
placements to professional and sophisticated
investors and a Share Purchase Plan (“SPP”) during
the year.
On 23 April 2018, Renascor entered in a new Option
Agreement to acquire Ausmin Development Pty
Ltd (Ausmin), which owns the rights to the Siviour
Graphite Project. This new agreement secures
Renascor’s rights to acquire 100% ownership
of the Siviour Graphite Project in exchange for
approximately 189.6 million shares in Renascor.
The agreement simplifies the conditionality
of the previous option structure by removing
the minimum expenditure requirement as a
precondition to acquisition and instead requiring
shareholder approval to be secured before the
option can be exercised. Renascor shareholders
approved the issuance of the shares under the new
Option Agreement at a general meeting held on 3
September 2018.
Operations
Renascor’s activities during the past financial year
were primarily directed at developing the Siviour
Graphite Project.
Significant activities undertaken on the Siviour
Graphite Project during the year included:
• Completing a Pre-Feasibility Study (PFS) that
considers the viability of producing natural flake
graphite from the Siviour Graphite Project. The
Siviour PFS considered two development options:
immediate large-scale production and low start-
up capital or a two staged development
approach, with a small-scale operation, before
transitioning to larger-scale production.
• Declaring the Maiden JORC-compliant Ore
Reserve for Siviour of 45.2Mt @ 7.9% TGC for 3.6
million tonnes of contained graphite.
• Completing a Spherical Scoping Study that
considers the potential for value uplift through
vertically integrated development of mine and
flake graphite concentrate operation, plus
downstream production of spherical graphite.
• Concluding the first offtake agreement for the
Siviour Graphite Project with Qingdao Chenyang
Graphite.
• Confirming through independent testing that
Siviour graphite meets or exceeds industry
specifications for key end use applications, with
results including producing 99.99% spherical
graphite suitable for use in lithium ion battery
anodes, producing lithium ion battery anode
material from Siviour spherical graphite and
confirming the suitability of Siviour concentrates
for expandable graphite and a range of high-
value and traditional markets.
In addition to its activities at the Siviour Graphite
Project, Renascor has maintained a strong
exploration portfolio, identifying and maintaining a
strong pipeline of targets for development of copper,
gold, nickel, cobalt and other mineral assets. To
limit non-essential expenditure, Renascor has also
relinquished tenements considered less prospective.
Significant changes in the state of
affairs
There were no significant changes in the state of
affairs of the Group during the financial year.
Matters subsequent to the end of the
financial year
On the 5th of July 2018, the Company announced
its intention, subject to shareholder approval,
to exercise its option to acquire a 100% interest
in the Siviour Graphite Project by the issue of
approximately 189.6 million shares in Renascor.
Shareholder approval for this transaction was
obtained in the Extraordinary General Meeting on
the 3rd of September 2018.
On the 22nd of August 2018, an agreement was
entered into by the Company with the owners
of the property that hosts the Siviour Graphite
Project. The agreement provides the Company
with access rights to the property to undertake
drilling, collect bulk sample material and carry
out other work programs. The agreement further
grants the Company the right to acquire an
option to purchase the land, with the price to be
determined following an independent appraisal.
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Other current directorships:
None
Former directorships (last 3 years):
None
Interests in shares:
15,770,519
Interests in options:
150,000
Richard (Dick) Keevers, Non-Executive Chairman
Dick 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.
Dick’s 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. Dick also
was a substantial shareholder of and served as
an executive director for Pembroke Josephson
Wright Limited, an Australian share brokerage
firm. Dick has served on boards of several ASX-
listed resource companies, and he is currently
a non-executive director of Santana Minerals
Limited. Dick also serves as chairman of unlisted
Eyre Peninsula Minerals Proprietary Limited. Dick
is a graduate of the University of New England,
NSW (BSc, Geology), and is a fellow of Australasian
Institute of Mining and Metallurgy.
Other current directorships:
Santana Minerals Limited
Former directorships (last 3 years):
None
Interests in shares:
43,799,340
Interests in options:
7,834,399
On the 28th of August 2018, the Company lodged a
Mining Lease Application for Siviour Graphite Project
with the South Australia Department for Energy and
Mining.
On the 10th of September 2018, infill drilling was
commenced at the Company’s Siviour Graphite
Project. The drill program will focus on close-spaced
drilling within the Siviour Indicated Resource to
permit detailed mine planning for the Siviour
Definitive Feasibility Study.
No other matter or circumstance has arisen since
30 June 2018 that has significantly affected, or may
significantly affect the Group’s operations, the results
of those operations, or the Group’s state of affairs in
future financial years.
Likely developments and expected
results of operations
The Company will continue activities in the
exploration, evaluation, development and acquisition
of viable projects with the objective of establishing a
significant production business.
Environmental regulation and
performance
The directors have put in place strategies and
procedures to ensure that the Group manages its
compliance with environmental regulations. The
directors are not aware of any breaches of any
applicable environmental regulations.
Information on directors
David Christensen, Managing Director
David Christensen is an experienced mining
executive, with 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.
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).
13
Renascor Resources Limited annual report 2018
Directors’ Report
Information on directors Continued
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.
Other current directorships:
None
Former directorships (last 3 years):
None
Interests in shares:
9,249,699
Interests in options:
235,294
Chris Anderson, Non-Executive Director
Chris Anderson is an experienced geophysicist
with over 40 years in mineral exploration in
Australia and abroad. His 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. Chris’ 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.
Other current directorships:
None
Former directorships (last 3 years):
None
Interests in shares:
15,753,240
Interests in options:
588,235
Andrew Martin, Non-Executive Director
Non-Executive Director (resigned 20 November
2017)
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.
Other current directorships:
None
Former directorships (last 3 years):
None
‘Other current directorships’ quoted above are
current directorships for listed entities only
and excludes directorships of all other types of
entities, unless otherwise stated.
‘Former directorships (last 3 years)’ quoted above
are directorships held in the last 3 years for listed
entities only and excludes directorships of all
other types of entities, unless otherwise stated.
Company Secretary
Pierre van der Merwe, Company Secretary
Pierre van der Merwe (appointed 4 June 2018) is
a Chartered Accountant of 30 years experience
with extensive knowledge in the provision of
corporate secretarial and accounting services to
ASX listed companies. He also has experience as
CFO and was a Partner from 2004 to 2016 in HLB
Mann Judd (SA), an Australasian and International
accountancy and business advisory group.
During this time he headed the Corporate Team
in Adelaide which provides corporate secretarial
and accounting services to a host of ASX listed
companies in various industries, specialising in
exploration and mining entities.
Angelo Gaudio resigned from the position of Chief
Financial Officer and Company Secretary 4 June 2018.
14
Meetings of directors
The number of meetings of the Company’s Board of Directors (‘the Board’) held during the year ended
30 June 2018, and the number of meetings attended by each director were:
Director
Attended
Held
Attended
Held
Full Board
Audit Committee meetings
Richard Keevers
David Christensen
Geoffrey McConachy
Chris Anderson
Stephen Bizzell
Andrew Martin
6
6
5
6
6
3
6
6
6
6
6
3
1
2
2
-
2
1
1
2
2
-
2
1
Held: represents the number of meetings held during the time the director held office.
• performance linkage / alignment of executive
compensation
transparency
•
The Board carried out the functions of the
Nomination and Remuneration Committee and
is responsible for determining and reviewing
remuneration arrangements for its directors and
executives. The performance of the Group depends
on the quality of its directors and executives. The
remuneration philosophy is to attract, motivate and
retain high performance and high quality personnel.
The Board is responsible for managing:
• non-executive director fees;
• executive remuneration (directors and other
executives); and
•
the over-arching executive remuneration
framework and incentive plan policies.
Their objective is to ensure that remuneration
policies and structures are fair and competitive and
aligned with the long-term interests of the Group.
Remuneration report (audited)
The remuneration report details the key
management personnel remuneration arrangements
for the Group, in accordance with the requirements
of the Corporations Act 2001 and its Regulations.
Key management personnel are those persons
having authority and responsibility for planning,
directing and controlling the activities of the entity,
directly or indirectly, including all directors.
The remuneration report is set out under the
following main headings:
• Principles used to determine the nature and
amount of remuneration
• Details of remuneration
• Service agreements
• Share-based compensation
• Additional information
• Additional disclosures relating to key
management personnel
Principles used to determine the nature and amount
of remuneration
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 the
achievement of strategic objectives and the creation
of value for shareholders, and it is considered to
conform to the market best practice for the delivery
of reward. The Board of Directors (‘the Board’)
ensures that executive reward satisfies the following
key criteria for good reward governance practices:
• competitiveness and reasonableness
• acceptability to shareholders
15
Renascor Resources Limited annual report 2018
Directors’ Report
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 towards the sector and the global
economy and as such increases or decreases may
occur quite independent of executive performance
or remuneration.
In accordance with best practice corporate
governance, the structure of non-executive director
and executive director remuneration is separate.
Non-executive directors remuneration
Fees and payments to non-executive directors reflect
the demands and responsibilities of their role. Non-
executive directors’ fees and payments are reviewed
periodically by the Board. The chairman’s fees are
determined independently to the fees of other non-
executive directors based on comparative roles in
the external market. The chairman is not present at
any discussions relating to the determination of his
own remuneration. Non-executive directors do not
receive any performance-based pay.
ASX listing rules require the aggregate non-executive
directors’ remuneration be determined periodically
by a general meeting. The most recent determination
was at the Annual General Meeting held on 5 August
2010, where the shareholders approved a maximum
annual aggregate remuneration of $350,000.
Retirement allowances for non-executive directors
In line with guidance from the ASX Corporate
Governance Council on non-executive director’s
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 remuneration
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;
16
• performance linkage/alignment of executive
compensation;
•
transparency; and
• capital management.
The Group has structured an executive remuneration
framework that is market competitive and
complementary to the reward strategy of the
organisation.
Alignment to shareholders’ interests:
• has economic profit as a core component of plan
•
design;
focuses on sustained growth in shareholder
wealth, consisting of dividends and growth in
share price;
• delivering constant return on assets as well as
focusing the executive on key non-financial
drivers of value; and
attracts and retains high calibre executives.
•
Alignment to program participants’ interests:
• rewards capability and experience;
•
reflects competitive reward for contribution to
growth in shareholder wealth;
provides a clear structure for earning rewards;
and
•
• provides recognition for contribution.
The framework provides a mix of fixed and long-term
incentives.
The Board carried out the functions of the
Remuneration and Nominations Committees
and is responsible for reviewing and negotiating
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 Board ensures that executive reward satisfies
the following key criteria for good reward governance
practices:
• base pay and benefits, including superannuation;
•
short-term performance incentives through a
cash bonus may be determined by the Board;
and
•
long-term incentives through the issue of share
options and performance rights.
The combination of these comprises the executive’s
total remuneration.
Base pay and benefits
Base pay and benefits are structured as a total
employment cost package which may be delivered as
a combination of cash and prescribed non-financial
benefits, at the executive’s discretion and subject to
board approval. Executives are offered a competitive
base pay that comprises the fixed component of
pay and rewards to ensure base pay is set to reflect
the market for a comparable role. Base pay for
executives is reviewed periodically to ensure the
executive’s pay is competitive with the market. There
is no guaranteed base pay increase included in any
of the executives’ contracts.
Consolidated entity performance and link to
remuneration
Remuneration for certain individuals is directly
linked to the performance of the Group. A portion
of any cash bonus and incentive payments are at
the discretion of the Nomination and Remuneration
Committee. Refer to the “additional information”
section below for details of the earnings and total
shareholders return for the last five years.
The Nomination and Remuneration Committee is of
the opinion that the continued improved results can
be attributed in part to the adoption of performance
based compensation and is satisfied that this
improvement will continue to increase shareholder
wealth if maintained over the coming years.
Voting and comments made at the Company’s 20
November 2017 Annual General Meeting (‘AGM’)
At the 20 November 2017 AGM, 99.9% of the
votes received supported the adoption of the
remuneration report for the year ended 30 June
2017. The Company did not receive any specific
feedback at the AGM regarding its remuneration
practices.
Details of remuneration
Amounts of remuneration
Details of the remuneration of key management personnel of the Group are set out in the following tables.
2018
Short-term
employee benefits
Post
employment
benefits
Long-term
benefits
Share-based
payments
Cash
salary
and fees
Cash
Non-
bonus monetary
Super-
annuation
Name
$
$
Non-executive directors
Chris Anderson
Stephen Bizzell
Richard Keevers
Andrew Martin
Executive directors
David Christensen
Geoffrey McConachy
Other key management
personnel
Angelo Gaudio
Pierre van der Merwe
Total
19,250
23,333
28,905
6,428
273,600
239,200
93,113
8,333
692,162
-
-
-
-
-
-
-
-
-
Long
service
Leave
$
-
-
-
-
NEDSP
shares
Total
$
$
13,750 33,000
16,667 40,000
25,000 58,243
7,778 15,556
$
-
-
-
-
$
-
-
4,338
1,350
9,950
-
20,049
20,049
8,545
6,299
- 312,144
- 265,548
-
-
-
-
-
-
-
-
93,113
8,333
9,950
45,786
14,844
63,195 825,937
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. On 1 May 2018 the
NEDSP agreement was suspended with the option of reintroducing it in the future if required.
At 30 June 2018, NEDSP shares for the period 1 March 2018 to 30 April 2018 had not been issued and were settled
by a cash payment in September 2018.
Short term benefits paid to Mr Christensen includes $24,000 in entitlements paid during the year.
17
Renascor Resources Limited annual report 2018
Directors’ Report
2017
Short-term
employee benefits
Post
employment
benefits
Long-term
benefits
Share-based
payments
Cash
salary
and fees
Cash
Non-
bonus monetary
Super-
annuation
Name
$
$
Non-executive directors
Chris Anderson
Stephen Bizzell
Richard Keevers
Andrew Martin
Executive directors
David Christensen
Geoffrey McConachy
Other key management
personnel
Angelo Gaudio
Total
16,500
25,000
23,600
16,530
273,600
239,200
100,000
694,430
-
-
-
-
-
-
-
-
Long
service
Leave
$
-
-
-
-
NEDSP
shares
Total
$
$
16,500 33,000
25,000 50,000
20,000 47,742
20,000 40,000
$
-
-
-
-
$
-
-
4,142
3,470
18,815
-
19,616
19,616
13,957
13,376
- 325,988
- 272,192
-
-
-
- 100,000
18,815
46,844
27,333
81,500 868,922
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.
On 15 April 2016, Mr Gaudio terminated his employment agreement with the Company. On 15 April 2016, the
Company entered into a consulting agreement with Angelo Gaudio and his company to provide services as
Company Secretary and Chief Financial Officer.
Short term benefits paid to Mr Christensen includes $24,000 in entitlements paid during the year.
The proportion of remuneration linked to performance and the fixed proportion are as follows:
2018
Name
Non-executive directors
Chris Anderson
Stephen Bizzell
Richard Keevers
Andrew Martin
Executive directors
David Christensen
Geoffrey McConachy
Other key management
personnel
Angelo Gaudio
Pierre van der Merwe
Fixed remuneration
At risk - STI
At risk - LTI
2018
2017
2018
2017
2018
2017
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Key management personnel and executives were not paid cash bonuses or performance-related bonuses during
the years ended 30 June 2018 and 2017.
18
Service agreements
Remuneration and other terms of employment for
key management personnel are formalised in service
agreements. Details of these agreements are as
follows:
David Christensen, Managing Director
Angelo Gaudio, Chief Financial Officer and
Company Secretary
Term of agreement: The agreement was
terminated in June 2018.
Details: Services are provided at a rate of $8,333
per month plus GST plus expenses.
Term of agreement: Indefinite term, subject to
six-month’s notice or a termination payment of
six months.
Details: Per annum rate of $249,600, exclusive of
superannuation. In addition, David is also entitled
to private health insurance.
Pierre van der Merwe, Chief Financial Officer
and Company Secretary
The agreement may be terminated by either
party on one months’ notice.
Details: Services are provided at a rate of $8,333
per month plus GST plus expenses.
Geoffrey McConachy, Exploration Director
Term of agreement: Indefinite term, subject to
three-month’s notice or a termination payment of
three months.
Details: Per annum rate of $239,200, exclusive of
superannuation.
Share-based compensation
Key management personnel have no entitlement to
termination payments in the event of removal for
misconduct.
Issue of shares
Details of shares issued to directors and other key management personnel as part of compensation during the
year ended 30 June 2018 are set out below:
Name
Andrew Martin
Andrew Martin
Christopher Anderson
Christopher Anderson
Richard Keevers
Richard Keevers
Stephen Bizzell
Stephen Bizzell
Date
Shares
Issue price
3 October 2017
28 February 2018
3 October 2017
28 February 2018
3 October 2017
28 February 2018
3 October 2017
28 February 2018
595,238
487,443
491,071
515,586
595,238
666,207
892,587
648,653
$0.02
$0.04
$0.02
$0.04
$0.02
$0.04
$0.02
$0.04
$
13,085
19,693
10,280
20,830
13,085
26,915
19,627
26,206
The shares issued during the year under the Non-Executive Directors Share Plan (NEDSP) pertained to the period
1 April 2016 to 28 February 2018. At 30 June 2018 NEDSP shares for the period 1 March 2018 to 30 April 2018 were
unissued and were settled by a cash payment in September 2018.
Options
There were no options over ordinary shares issued to directors and other key management personnel as part of
compensation that were outstanding as at 30 June 2018.
Performance rights
There were no performance rights over ordinary shares issued to directors and other key management personnel as
part of compensation that were outstanding as at 30 June 2018.
19
Renascor Resources Limited annual report 2018
Directors’ Report
Additional information
Refer to the sections below for details of the earnings and total shareholders return for the last five years:
The earnings of the Group for the five years to 30 June 2018 are summarised below:
2018
2017
2016
2015
2014
$
$
$
$
$
(Loss) for the year attributable to owners
(3,434,543)
(1,085,492)
(890,079)
(4,932,426)
(1,513,910)
Increase/(decrease) in share price
Total KMP incentives as a percentage of
profit/(loss) for the year
%
25
-
%
25
-
%
-
-
%
46
-
%
6
2
The factors that are considered to affect total shareholders return (‘TSR’) are summarised below:
Name
2018
2017
2016
2015
2014
Share price at financial year end (cents)
¢
2.0
¢
1.6
¢
2.0
¢
2.0
¢
3.7
Basic earnings per share (cents per share)
(0.5)
(0.2)
(0.4)
(3.5)
(1.3)
Additional disclosures relating to key management personnel
Shareholding
The number of shares in the Company held during the financial year by each director and other members of
key management personnel of the Group, including their personally related parties, is set out below:
Ordinary shares
Chris Anderson
Stephen Bizzell
David Christensen
Richard Keevers
Geoffrey McConachy
Andrew Martin*
Angelo Gaudio**
Balance at
the start of
the year
Recieved
as part of
remuneration
Additions
Other
Balance at
the end of
the year
13,570,113
1,006,657
1,176,470
-
15,753,240
20,919,002
1,541,510
4,500,000
(14,000)
26,946,512
15,285,334
-
485,185
42,167,525
1,261,445
370,370
-
-
-
15,770,519
43,799,340
9,249,699
8,501,334
24,626,655
8,736,667
-
-
-
748,365
-
(24,626,655)
300,000
(9,036,667)
-
-
133,806,630
3,809,612
7,580,390
(33,677,322) 111,519,310
* Mr Martin resigned as a director on 20 November 2017. At the time of his resignation he had an interest in
24,626,655 ordinary shares.
** Mr Gaudio resigned as company secretary on 4 June 2018. At the time of his resignation he had an interest in
9,036,667 ordinary shares.
20
Option holding
The number of options over ordinary shares in the Company held during the financial year by each director
and other members of key management personnel of the Group, including their personally related parties, is
set out below:
Options over ordinary shares
Chris Anderson
Stephen Bizzell
David Christensen
Richard Keevers
Geoffrey McConachy
Angelo Gaudio *
Balance at
the start of
the year
Acquired
Exercised
Other
Balance at
the end of
the year
-
-
-
588,235
6,250,000
150,000
7,834,399
-
-
-
235,294
150,000
7,834,399
7,373,529
-
-
-
-
-
-
-
-
-
-
-
-
588,235
6,250,000
150,000
7,834,399
235,294
(150,000)
-
(150,000)
15,057,928
* Mr Gaudio resigned as company secretary on 4 June 2018. At the time of his resignation he had an interest in
150,000 options.
All options are vested at 30 June 2018 and are
exercisable at any time until they reach their
expiry dates.
Other transactions with key management personnel
and their related parties
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 $44,351
(2017: $133,900) from Euro. An amount of $8,353
(2017: $1,846) was owing to Euro at 30 June 2018.
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 $73,300 (2017: $69,850) from CGAA. An amount of
$15,730 (2017: $4,235) was owing to CGAA at
30 June 2018.
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
$168,515 (2017: $170,687) from BCP. An amount of
$23,207 (2017: $Nil) was owing to BCP at
30 June 2018.
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 $Nil (2017: $5,100) from Arion Legal
of which $Nil (2017: $5,100) was included as a legal
expense during the financial year. No amount was
owing to Arion Legal at 30 June 2018 (2017: $Nil).
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. 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.
This concludes the remuneration
report, which has been audited.
21
Renascor Resources Limited annual report 2018
Directors’ Report
Shares under option
Refer to the sections below for details of the earnings and total shareholders return for the last five years:
Grant date
05/12/2016
28/11/2017
Expiry date
Exercise price
Number under option
05/12/2019
31/10/2019
$0.05
$0.03
15,000,000
114,761,096
129,761,096
No person entitled to exercise the options had or
has any right by virtue of the option to participate in
any share issue of the Company or of any other body
corporate.
Shares under performance rights
There were no unissued ordinary shares of Renascor
Resources Limited under performance rights
outstanding at the date of this report.
Shares issued on the exercise of options
There were no ordinary shares of Renascor Resources
Limited issued on the exercise of options during the
year ended 30 June 2018 and up to the date of this
report.
Shares issued on the exercise of
performance rights
There were no ordinary shares of Renascor Resources
Limited issued on the exercise of performance rights
during the year ended 30 June 2018 and up to the
date of this report.
Indemnity and insurance of officers
The Company has indemnified the directors and
executives of the Company for costs incurred, in their
capacity as a director or executive, for which they may
be held personally liable, except where there is a lack
of good faith.
During the financial year, the Company paid a
premium in respect of a contract to insure the
directors and executives of the Company against a
liability 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.
Indemnity and insurance of auditor
The Company has not, during or since the end of the
financial year, indemnified or agreed to indemnify the
auditor of the Company or any related entity against
a liability incurred by the auditor.
During the financial year, the Company has not paid a
premium in respect of a contract to insure the auditor
of the Company or any related entity.
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.
Non-audit services
Details of the amounts paid or payable to the auditor
for non-audit services provided during the financial
year by the auditor are outlined in note 24 to the
financial statements.
The directors are satisfied that the provision of
non-audit services during the financial year, by the
auditor (or by another person or firm on the auditor’s
behalf), is compatible with the general standard
of independence for auditors imposed by the
Corporations Act 2001.
The directors are of the opinion that the services as
disclosed in note 24 to the financial statements do
not compromise the external auditor’s independence
requirements of the Corporations Act 2001 for the
following reasons:
•
all non-audit services have been reviewed and
approved to ensure that they do not impact the
integrity and objectivity of the auditor; and
•
none of the services undermine the general
principles relating to auditor independence as set
out in APES 110 Code of Ethics for Professional
Accountants issued by the Accounting Professional
and Ethical Standards Board, including reviewing
or auditing the auditor’s own work, acting in a
management or decision-making capacity for the
Company, acting as advocate for the Company or
jointly sharing economic risks and rewards.
Officers of the Company who are former
partners of BDO Audit (SA) Pty Ltd
There are no officers of the Company who are former
partners of BDO Audit (SA) Pty Ltd.
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 immediately after this directors’ report.
Auditor
BDO Audit (SA) Pty Ltd continues in office in accordance
with section 327 of the Corporations Act 2001.
This report is made in accordance with a resolution
of directors, pursuant to section 298(2)(a) of the
Corporations Act 2001.
On behalf of the directors
David Christensen
Director
28 September 2018
22
Auditor’s independence declaration
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 2018, 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 2018
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).
8
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24
Financial report
Financial Report
General information
The financial statements cover Renascor Resources Limited as a Group consisting
of Renascor Resources Limited and the entities it controlled at the end of, or
during, the year. The financial statements are presented in Australian dollars,
which is Renascor Resources Limited’s functional and presentation currency.
Renascor Resources Limited is a listed public company limited by shares,
incorporated and domiciled in Australia. Its registered office and principal place
of business is:
36 North Terrace
Kent Town SA 5067
Telephone: + 61 8 363 6989
Facsimile: +61 8 8363 4989
www.renascor.com.au
A description of the nature of the Group’s operations and its principal activities
are included in the directors’ report, which is not part of the financial statements.
The financial statements were authorised for issue, in accordance with a
resolution of directors, on 28 September 2018. The directors have the power to
amend and reissue the financial statements.
25
Renascor Resources Limited annual report 2018
Renascor Resources Limited ABN 90 135 531 341 annual report 2018
Statement of profit or loss and other comprehensive income
For the year ended 30 June 2018
Revenue
Expenses
Administration and consulting
Depreciation and amortisation expense
Employee benefits expense
Office accommodation
Impairment of exploration expenditure
Legal fees
Other expenses
Loss before income tax expense
Income tax expense
Consolidated
Notes
30 June 2018
30 June 2017
$
$
40,938
40,898
(341,058)
(2,130)
(276,955)
(30,596)
(2,305,666)
(21,705)
(497,371)
(269,020)
(3,000)
(341,146)
(30,596)
(374,343)
(15,706)
(92,579)
(3,434,543)
(1,085,492)
-
-
4
5
6
7
8
9
Loss after income tax expense for the year attributable
to the owners of Renascor Resources Limited
20
(3,434,543)
(1,085,492)
Other comprehensive income for the year, net of tax
-
-
Total comprehensive income for the year attributable
to the owners of Renascor Resources Limited
(3,434,543)
(1,085,492)
Basic earnings per share
Diluted earnings per share
31
31
Cents
(0.5)
(0.5)
Cents
(0.2)
(0.2)
The above statement of profit or loss and other comprehensive income should be read in conjunction with
the accompanying notes
26
Renascor Resources Limited ABN 90 135 531 341 annual report 2018
Statement of financial position
As at 30 June 2018
Assets
Current assets
Cash and cash equivalents
Other receivables
Other
Total current assets
Non-current assets
Receivables
Property, plant and equipment
Exploration and evaluation
Total non-current assets
Total assets
Liabilities
Current liabilities
Trade and other payables
Provisions
Total current liabilities
Non-current liabilities
Provisions
Total non-current liabilities
Total liabilities
Net assets
Equity
Issued capital
Reserves
Accumulated losses
Total equity
Consolidated
Notes
30 June 2018
30 June 2017
$
$
10
11
12
13
14
15
16
17
18
19
20
8,188,830
1,230,213
288,551
8,850
39,076
10,963
8,486,231
1,280,252
20,000
4,751
7,369,924
7,394,675
20,000
4,287
7,333,025
7,357,312
15,880,906
8,637,564
603,176
222,792
284,225
136,811
825,968
421,036
-
-
98,082
98,082
825,968
519,118
15,054,938
8,118,446
28,752,262
18,628,616
230,228
(17,161)
(13,927,552)
(10,493,009)
15,054,938
8,118,446
The above statement of financial position should be read in conjunction with the accompanying notes
27
Renascor Resources Limited ABN 90 135 531 341 annual report 2018
Statement of changes in equity
For the year ended 30 June 2018
Consolidated
Share-based
Business
Contributed
Payments
Combination
Accumulated
Non-
controlling
equity
Reserve
Reserve
Losses
interest
$
$
$
$
Total
equity
$
Balance at 1 July 2016
13,235,479
1,041,506
Loss after income tax expense
for the year
Other comprehensive income for
the year, net of tax
Total comprehensive income for
the year
Transactions with owners in their
capacity as owners:
Contributions of equity, net of
transaction costs (note 18)
Acquisition of non-controlling interest
-
-
-
2,734,470
-
-
-
-
-
-
-
-
-
(9,407,517)
1,600,000
6,469,468
(1,085,492)
-
(1,085,492)
-
-
-
(1,085,492)
-
(1,085,492)
-
-
2,734,470
of Eyre Peninsula Minerals Pty Ltd
2,658,667
359,123
(1,417,790)
-
(1,600,000)
-
Balance at 30 June 2017
18,628,616
1,400,629
(1,417,790)
(10,493,009)
Balance at 1 July 2017
18,628,616
1,400,629
(1,417,790)
(10,493,009)
-
-
8,118,446
8,118,446
Loss after income tax expense
for the year
Other comprehensive income for
the year, net of tax
Total comprehensive income for the year
Transactions with owners in their
capacity as owners:
Contributions of equity, net of
transaction costs (note 18)
-
-
-
9,742,748
-
-
-
-
Share-based payments (note 32)
380,898
247,389
-
-
-
-
-
-
(3,434,543)
-
-
(3,434,543)
-
(3,434,543)
-
-
-
-
-
-
(3,434,543)
9,742,748
628,287
15,054,938
Balance at 30 June 2018
28,752,262
1,648,018
(1,417,790)
(13,927,552)
The above statement of changes in equity should be read in conjunction with the accompanying notes
28
Renascor Resources Limited ABN 90 135 531 341 annual report 2018
Statement of cash flows
For the year ended 30 June 2018
Consolidated
Notes
30 June 2018
30 June 2017
$
$
Cash flows from operating activities
Payments to suppliers and employees (inclusive of GST)
Receipts from Goods & Services Tax paid
Interest received
Research & Development tax concession
Other revenue
Net cash used in operating activities
Cash flows from investing activities
Payments for property, plant and equipment
Payments for exploration and evaluation
Tenement security bond payment
Net cash used in investing activities
Cash flows from financing activities
Proceeds from issue of shares
Share issue transaction costs
Net cash from financing activities
Net increase in cash and cash equivalents
Cash and cash equivalents at the beginning of the financial year
30
13
14
18
(741,657)
205,170
36,902
-
4,036
(925,116)
162,721
41,027
147,985
-
(495,549)
(573,383)
(2,594)
(1,849)
(2,531,539)
(1,771,513)
-
(20,000)
(2,534,133)
(1,793,362)
10,790,584
(802,285)
2,920,760
(186,290)
9,988,299
2,734,470
6,958,617
1,230,213
367,725
862,488
Cash and cash equivalents at the end of the financial year
10
8,188,830
1,230,213
The above statement of cash flows should be read in conjunction with the accompanying notes
29
Renascor Resources Limited ABN 90 135 531 341 annual report 2018
Notes to the financial statements
1 Significant accounting policies
The principal accounting policies adopted in the
preparation of the financial statements are set
out either in the respective notes or below. These
policies have been consistently applied to all the
years presented, unless otherwise stated.
New or amended Accounting Standards and
Interpretations adopted
The Group has adopted all of the new or amended
Accounting Standards and Interpretations issued
by the Australian Accounting Standards Board
(‘AASB’) that are mandatory for the current
reporting period.
Any new or amended Accounting Standards or
Interpretations that are not yet mandatory have
not been early adopted.
Basis of preparation
These general purpose financial statements have
been prepared in accordance with Australian
Accounting Standards and Interpretations
issued by the Australian Accounting Standards
Board (‘AASB’) and the Corporations Act 2001,
as appropriate for for-profit oriented entities.
These financial statements also comply with
International Financial Reporting Standards as
issued by the International Accounting Standards
Board (‘IASB’).
Historical cost convention
The financial statements have been prepared
under the historical cost convention, except for,
where applicable, the revaluation of available-for-
sale financial assets, financial assets and liabilities
at fair value through profit or loss, and equipment
and derivative financial instruments.
Critical accounting estimates
The preparation of the financial statements
requires the use of certain critical accounting
estimates. It also requires management
to exercise its judgement in the process of
applying the Group’s accounting policies. The
areas involving a higher degree of judgement
or complexity, or areas where assumptions
and estimates are significant to the financial
statements, are disclosed in note 2.
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 $3,434,543 (2017: $1,085,493)
and net operating cash outflow of $495,549
(2017: $573,383). At 30 June 2018, the Group had
net current assets of $7,660,263 (30 June 2017:
$859,216).
30
The consolidated entity’s ability to continue as a
going concern is contingent on raising additional
capital and/or the successful exploration and
subsequent exploitation of its areas of interest
through sale or development. The matters set
out above indicate the existence of a material
uncertainty that may cast significant doubt about
the entity’s ability to continue as a going concern
and therefore the entity may be unable to realise
its assets and discharge its liabilities in the normal
course of business. The financial statements
do not include any adjustments that may be
necessary if the consolidated entity is unable to
continue as a going concern. The consolidated
entity’s ability to continue as a going concern
is contingent on raising additional capital and/
or the successful exploration and subsequent
exploitation of its areas of interest through sale or
development. The matters set out above indicate
the existence of a material uncertainty that may
cast significant doubt about the entity’s ability to
continue as a going concern and therefore the
entity may be unable to realise its assets and
discharge its liabilities in the normal course of
business. The financial statements do not include
any adjustments that may be necessary if the
consolidated entity is unable to continue as a
going concern
Parent entity information
In accordance with the Corporations Act 2001,
these financial statements present the results of
the Group only. Supplementary information about
the parent entity is disclosed in note 27.
Principles of consolidation
The consolidated financial statements incorporate
the assets and liabilities of all subsidiaries of
Renascor Resources Limited (‘Company’ or ‘parent
entity’) as at 30 June 2018 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’.
Subsidiaries are all those entities over which the
Group has control. The Group controls an entity
when the Group 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 Group.
They are de-consolidated from the date that
control ceases.
Renascor Resources Limited ABN 90 135 531 341 annual report 2018
Notes to the financial statements
Intercompany transactions, balances and
unrealised gains on transactions between
entities in the Group 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 Group.
The acquisition of subsidiaries is accounted for
using the acquisition method of accounting. A
change in ownership interest, without the loss of
control, is accounted for as an equity transaction,
where the difference between the consideration
transferred and the book value of the share of the
non-controlling interest acquired is recognised
directly in equity attributable to the parent.
Where the Group loses control over a subsidiary,
it derecognises the assets including goodwill,
liabilities and non-controlling interest in the
subsidiary together with any cumulative
translation differences recognised in equity.
The Group recognises the fair value of the
consideration received and the fair value of any
investment retained together with any gain or loss
in profit or loss.
The financial statements are presented in
Australian dollars, which is Renascor Resources
Limited’s functional and presentation currency.
Income tax
The income tax expense or benefit for the period
is the tax payable on that period’s taxable income
based on the applicable income tax rate for each
jurisdiction, adjusted by the changes in deferred
tax assets and liabilities attributable to temporary
differences, unused tax losses and the adjustment
recognised for prior periods, where applicable.
Deferred tax assets and liabilities are recognised
for temporary differences at the tax rates
expected to be applied when the assets are
recovered or liabilities are settled, based on
those tax rates that are enacted or substantively
enacted, except for:
•
•
When the deferred income tax asset or liability
arises from the initial recognition of goodwill or
an asset or liability in a transaction that is not a
business combination and that, at the time of
the transaction, affects neither the accounting
nor taxable profits; or
When the taxable temporary difference is
associated with interests in subsidiaries,
associates or joint ventures, and the timing of
the reversal can be controlled and it is probable
that the temporary difference will not reverse
in the foreseeable future.
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.
The carrying amount of recognised and
unrecognised deferred tax assets are reviewed
at each reporting date. Deferred tax assets
recognised are reduced to the extent that it is no
longer probable that future taxable profits will be
available for the carrying amount to be recovered.
Previously unrecognised deferred tax assets
are recognised to the extent that it is probable
that there are future taxable profits available to
recover the asset.
Deferred tax assets and liabilities are offset only
where there is a legally enforceable right to offset
current tax assets against current tax liabilities
and deferred tax assets against deferred tax
liabilities; and they relate to the same taxable
authority on either the same taxable entity or
different taxable entities which intend to settle
simultaneously.
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.
Current and non-current classification
Assets and liabilities are presented in the
statement of financial position based on current
and non-current classification.
An asset is classified as current when: it is either
expected to be realised or intended to be sold or
consumed in the Group’s normal operating cycle;
it is held primarily for the purpose of trading; it
is expected to be realised within 12 months after
the reporting period; or the asset is cash or cash
equivalent unless restricted from being exchanged
or used to settle a liability for at least 12 months
after the reporting period. All other assets are
classified as non-current.
A liability is classified as current when: it is either
expected to be settled in the Group’s normal
operating cycle; it is held primarily for the purpose
of trading; it is due to be settled within 12
months after the reporting period; or there is no
unconditional right to defer the settlement of the
liability for at least 12 months after the reporting
period. All other liabilities are classified as non-
current.
Deferred tax assets and liabilities are always
classified as non-current.
31
Renascor Resources Limited ABN 90 135 531 341 annual report 2018
Notes to the financial statements
Impairment of non-financial assets
Goodwill and other 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 non-financial assets
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.
Recoverable amount is the higher of an asset’s fair
value less costs of disposal and value-in-use. The
value-in-use is the present value of the estimated
future cash flows relating to the asset using a
pre-tax discount rate specific to the asset or cash-
generating unit to which the asset belongs. Assets
that do not have independent cash flows are
grouped together to form a cash-generating unit.
Goods and Services Tax (‘GST’) and other
similar taxes
Revenues, expenses and assets are recognised net
of the amount of associated GST, unless the GST
incurred is not recoverable from the tax authority.
In this case it is recognised as part of the cost
of the 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 tax authority is included in other receivables
or other payables in the statement of financial
position.
Cash flows are presented on a gross basis.
The GST components of cash flows arising
from investing or financing activities which are
recoverable from, or payable to the tax authority,
are presented as operating cash flows.
Commitments and contingencies are disclosed
net of the amount of GST recoverable from, or
payable to, the tax authority.
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
32
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.
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 Group for the
annual reporting period ended 30 June 2018.
The Group’s assessment of the impact of these
new or amended Accounting Standards and
Interpretations, most relevant to the Group, are
set out below.
AASB 9 Financial Instruments
This standard is applicable to annual reporting
periods beginning on or after 1 January 2018.
The standard replaces all previous versions of
AASB 9 and completes the project to replace
IAS 39 ‘Financial Instruments: Recognition
and Measurement’. AASB 9 introduces new
classification and measurement models for
financial assets. A financial asset shall be
measured at amortised cost, if it is held within a
business model whose objective is to hold assets
in order to collect contractual cash flows, which
arise on specified dates and solely principal
and interest. All other financial instrument
assets are to be classified and measured at
fair value through profit or loss unless the
entity makes an irrevocable election on initial
recognition to present gains and losses on equity
instruments (that are not held-for-trading) in
other comprehensive income (‘OCI’). For financial
liabilities, the standard requires the portion of
the change in fair value that relates to the entity’s
own credit risk to be presented in OCI (unless
it would create an accounting mismatch). New
simpler hedge accounting requirements are
intended to more closely align the accounting
treatment with the risk management activities of
the entity. New impairment requirements will use
an ‘expected credit loss’ (‘ECL’) model to recognise
an allowance. Impairment will be measured under
a 12-month ECL method unless the credit risk on
a financial instrument has increased significantly
since initial recognition in which case the lifetime
ECL method is adopted. The standard introduces
additional new disclosures. The Group will adopt
this standard from 1 January 2018 but the impact
of its adoption is yet to be assessed by the Group.
Renascor Resources Limited ABN 90 135 531 341 annual report 2018
Notes to the financial statements
AASB 15 Revenue from Contracts with Customers
This standard is applicable to annual reporting
periods beginning on or after 1 January 2018. The
standard provides a single standard for revenue
recognition. The core principle of the standard
is that an entity will recognise revenue to depict
the transfer of promised goods or services
to customers in an amount that reflects the
consideration to which the entity expects to be
entitled in exchange for those goods or services.
The standard will require: contracts (either written,
verbal or implied) to be identified, together with
the separate performance obligations within
the contract; determine the transaction price,
adjusted for the time value of money excluding
credit risk; allocation of the transaction price to
the separate performance obligations on a basis
of relative stand-alone selling price of each distinct
good or service, or estimation approach if no
distinct observable prices exist; and recognition
of revenue when each performance obligation is
satisfied. Credit risk will be presented separately
as an expense rather than adjusted to revenue.
For goods, the performance obligation would be
satisfied when the customer obtains control of the
goods. For services, the performance obligation
is satisfied when the service has been provided,
typically for promises to transfer services to
customers. For performance obligations satisfied
over time, an entity would select an appropriate
measure of progress to determine how much
revenue should be recognised as the performance
obligation is satisfied. Contracts with customers
will be presented in an entity’s statement
of financial position as a contract liability, a
contract asset, or a receivable, depending on the
relationship between the entity’s performance and
the customer’s payment. Sufficient quantitative
and qualitative disclosure is required to enable
users to understand the contracts with customers;
the significant judgements made in applying
the guidance to those contracts; and any assets
recognised from the costs to obtain or fulfil
a contract with a customer. The consolidated
entity will adopt this standard from 1 July 2019,
the adoption of this standard is not expected to
have a material impact on the transactions and
balances recognised in the financial statements.
AASB 16 Leases
This standard is applicable to annual reporting
periods beginning on or after 1 January 2019.
The standard replaces AASB 117 ‘Leases’ and
for lessees will eliminate the classifications of
operating leases and finance leases. Subject to
exceptions, a ‘right-of-use’ asset will be capitalised
in the statement of financial position, measured
at the present value of the unavoidable future
lease payments to be made over the lease term.
The exceptions relate to short-term leases of 12
months or less and leases of low-value assets
(such as personal computers and small office
furniture) where an accounting policy choice exists
whereby either a ‘right-of-use’ asset is recognised
or lease payments are expensed to profit or
loss as incurred. A liability corresponding to the
capitalised lease will also be recognised, adjusted
for lease prepayments, lease incentives received,
initial direct costs incurred and an estimate of any
future restoration, removal or dismantling costs.
Straight-line operating lease expense recognition
will be replaced with a depreciation charge for the
leased asset (included in operating costs) and an
interest expense on the recognised lease liability
(included in finance costs). In the earlier periods of
the lease, the expenses associated with the lease
under AASB 16 will be higher when compared to
lease expenses under AASB 117. However EBITDA
(Earnings Before Interest, Tax, Depreciation and
Amortisation) results will be improved as the
operating expense is replaced by interest expense
and depreciation in profit or loss under AASB
16. For classification within the statement of
cash flows, the lease payments will be separated
into both a principal (financing activities) and
interest (either operating or financing activities)
component. For lessor accounting, the standard
does not substantially change how a lessor
accounts for leases. The consolidated entity
will adopt this standard from 1 January 2018 but
the impact of its adoption is not considered to
be material.
33
Renascor Resources Limited ABN 90 135 531 341 annual report 2018
Notes to the financial statements
2 Critical accounting judgements, estimates
3 Operating segments
The Group has identified its operating segments
based on the internal reports that reviewed and
used by the Managing Director (Chief Operating
Decision Maker ‘CODM’) 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.
Accounting policy for operating segments
Operating segments are presented using the
‘management approach’, where the information
presented is on the same basis as the internal
reports provided to the CODM. The CODM
is responsible for the allocation of resources
to operating segments and assessing their
performance.
and assumptions
The preparation of the financial statements
requires management to make judgements,
estimates and assumptions that affect the
reported amounts in the financial statements.
Management continually evaluates its judgements
and estimates in relation to assets, liabilities,
contingent liabilities, revenue and expenses.
Management bases its judgements, estimates
and assumptions on historical experience and
on other various factors, including expectations
of future events, management believes to be
reasonable under the circumstances. The resulting
accounting judgements and estimates will seldom
equal the related actual results. The judgements,
estimates and assumptions that have a significant
risk of causing a material adjustment to the
carrying amounts of assets and liabilities (refer to
the respective notes) within the next financial year
are discussed below.
Share-based payment transactions
The Group measures the cost of equity-settled
transactions with employees by reference to
the fair value of the equity instruments at the
date at which they are granted. The fair value
is determined by using either the Binomial or
Black-Scholes model taking into account the
terms and conditions upon which the instruments
were granted. The accounting estimates and
assumptions relating to equity-settled share-
based payments would have no impact on the
carrying amounts of assets and liabilities within
the next annual reporting period but may impact
profit or loss and equity. Details of share based
payment transactions are presented in Note 32.
Exploration and evaluation costs
Exploration and evaluation costs have been
capitalised on the basis that the Group will
commence commercial production in the future,
from which time the costs will be amortised
in proportion to the depletion of the mineral
resources. Key judgements are applied in
considering costs to be capitalised which includes
determining expenditures directly related to these
activities and allocating overheads between those
that are expensed and capitalised. In addition,
costs are only capitalised that are expected to be
recovered either through successful development
or sale of the relevant mining interest. Factors that
could impact the future commercial production
at the mine include the level of reserves and
resources, future technology changes, which could
impact the cost of mining, future legal changes
and changes in commodity prices. To the extent
that capitalised costs are determined not to be
recoverable in the future, they will be written off
in the period in which this determination is made.
Details of capitalised exploration and evaluation
costs are presented in Note 14.
34
Renascor Resources Limited ABN 90 135 531 341 annual report 2018
Notes to the financial statements
4 Revenue
Interest income
Other Income
Revenue
Consolidated
30 June 2018
30 June 2017
$
36,902
4,036
40,938
$
40,898
-
40,898
Accounting policy for revenue recognition
Revenue is recognised when it is probable that the economic benefit will flow to the Group and the revenue
can be reliably measured. Revenue is measured at the fair value of the consideration received or receivable.
Interest
Interest revenue is recognised as interest accrues using the effective interest method. This is a method of
calculating the amortised cost of a financial asset and allocating the interest income over the relevant period
using the effective interest rate, which is the rate that exactly discounts estimated future cash receipts through
the expected life of the financial asset to the net carrying amount of the financial asset.
Other revenue
Other revenue is recognised when it is received or when the right to receive payment is established.
5 Employee benefits expense
Employee benefits expense
Defined contribution superannuation expense
6 Office accommodation
Minimum office lease payments
7 Impairment of exploration expenditure
Impairment of exploration expenditure
Consolidated
30 June 2018
30 June 2017
$
234,382
42,573
276,955
$
293,641
47,505
341,146
Consolidated
30 June 2018
30 June 2017
$
$
30,596
30,596
Consolidated
30 June 2018
30 June 2017
$
$
2,305,666
374,343
35
Renascor Resources Limited ABN 90 135 531 341 annual report 2018
Notes to the financial statements
8 Other expenses
Business development & marketing
Investor and public relations
Travel
Other expenses
9 Income tax expense
Numerical reconciliation of income tax expense and tax at
the statutory rate
Loss before income tax expense
Tax at the statutory tax rate of 27.5%
Tax effect amounts which are not deductible/(taxable) in
calculating taxable income:
Entertainment expenses
Share-based payments
Research and development tax concession
Consolidated
30 June 2018
30 June 2017
$
257,500
131,356
72,033
36,482
497,371
$
805
29,725
26,535
35,514
92,579
Consolidated
30 June 2018
30 June 2017
$
$
(3,434,543)
(1,085,492)
(944,499)
(298,510)
323
63,938
(51,968)
112
-
(7,323)
(932,206)
(305,721)
Current year temporary differences not recognised
932,206
305,721
Income tax expense
-
-
The Group has tax losses arising in Australia of $15,377,990 (2017: $11,924,997) that may be
available and may be offset against future taxable profits. In addition, these tax losses can only
be utilised in the future if the continuity of ownership test is passed, or if failing that, the same
business test is passed.
The Group had nil franking credits in its franking account at 30 June 2018 (2017: Nil).
No deferred tax liability has been recognised for expenditure pertaining to exploration and
evaluation. The amount of $1,693,662 is fully offset by the Company’s deferred tax assets
(2017: $1,509,917).
No deferred tax asset has been recognised because it is not likely future assessable income is
derived of a nature and of an amount sufficient to enable the benefit to be realised.
36
Renascor Resources Limited ABN 90 135 531 341 annual report 2018
Notes to the financial statements
10 Current assets – Cash and cash equivalents
Cash on hand
Cash at bank
Consolidated
30 June 2018
30 June 2017
$
$
100
8,188,730
8,188,830
100
1,230,113
1,230,213
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.
Accounting policy for cash and cash equivalents
Cash and cash equivalents includes cash on hand, deposits held at call with financial
institutions, other short-term, 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. The carrying amount for cash and cash equivalents equals
the fair value.
11 Current assets – Other receivables
GST refundable
Sundry receivables
Research and development tax concession
Consolidated
30 June 2018
30 June 2017
$
99,277
300
188,974
288,551
$
38,776
300
-
39,076
Accounting policy for trade and other 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.
Due to the short-term nature of current receivables, their carrying amount is assessed to
approximate their fair value.
12 Current assets – other
Prepayments
Consolidated
30 June 2018
30 June 2017
$
$
8,850
10,963
37
Renascor Resources Limited ABN 90 135 531 341 annual report 2018
Notes to the financial statements
13 Non-current assets – property, plant and equipment
Computer equipment - at cost
Less: Accumulated depreciation
Office equipment - at cost
Less: Accumulated depreciation
Consolidated
30 June 2018
$
39,424
(35,137)
4,287
4,444
(3,980)
464
30 June 2017
$
36,830
(33,188)
3,642
4,444
(3,799)
645
4,751
4,287
Accounting policy for property, plant and equipment
Plant and equipment is stated at historical cost less accumulated depreciation and impairment.
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 is calculated on a straight-line basis to write off the net cost of each item of
property, plant and equipment (excluding land) over their expected useful lives as follows:
Plant and equipment
3-10 years
The residual values, useful lives and depreciation methods are reviewed, and adjusted if
appropriate, at each reporting date.
An item of property, plant and equipment is derecognised upon disposal or when there is no
future economic benefit to the Group. Gains and losses between the carrying amount and the
disposal proceeds are taken to profit or loss. Any revaluation surplus reserve relating to the
item disposed of is transferred directly to retained profits.
38
Renascor Resources Limited ABN 90 135 531 341 annual report 2018
Notes to the financial statements
14 Non-current assets - exploration and evaluation
Reconciliations
Reconciliations of the written down values at the beginning and end of the
current and previous financial year are set out below:
Consolidated
Balance at 1 July 2016
Expenditure during the year
Impairment of assets
$
5,977,605
1,756,391
(374,343)
R & D tax refund offset against capitalised exploration and evaluation #
(26,628)
Balance at 30 June 2017
Expenditure during the year
Impairment of assets
R & D tax refund offset against capitalised exploration and evaluation #
Balance at 30 June 2018
7,333,025
2,531,539
(2,305,666)
(188,974)
7,369,924
# 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.
Accounting policy for exploration and evaluation assets
Exploration and evaluation expenditure in relation to separate areas of interest for which rights
of tenure are current is carried forward as an asset in the statement of financial position where
it is expected that the expenditure will be recovered through the successful development
and exploitation of an area of interest, or by its sale, or exploration activities are continuing
in an area and activities have not reached a stage which permits a reasonable estimate of the
existence or otherwise of economically recoverable reserves. Where a project or an area of
interest has been abandoned, the expenditure incurred thereon is written off in the year in
which the decision is made.
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 $418,121 of internal personnel costs
(2017: $432,100) and management fees for joint venture tenements of $0 (2017: $62,439) which
form part of the exploration expenditure for the year.
39
Renascor Resources Limited ABN 90 135 531 341 annual report 2018
Notes to the financial statements
15 Current liabilities - trade and other payables
Trade and other payables
Sundry creditor and accrued expenses
Consolidated
30 June 2018
$
530,949
72,227
603,176
30 June 2017
$
109,237
174,988
284,225
Refer to note 22 for further information on financial instruments.
Accounting policy for trade and other payables
These amounts represent liabilities for goods and services provided to the Group prior to
the end of the financial year and which are unpaid. Due to their short-term nature they are
measured at amortised cost and are not discounted. The amounts are unsecured and are
usually paid within 30 days of recognition.
16 Current liabilities - provisions
Annual leave
Long service leave
Consolidated
30 June 2018
$
113,391
109,401
222,792
30 June 2017
$
136,811
-
136,811
Accounting policy for employee benefits
Short-term employee benefits
Liabilities for wages and salaries, including non-monetary benefits, annual leave and long
service leave expected to be settled wholly within 12 months of the reporting date are
measured at the amounts expected to be paid when the liabilities are settled.
17 Non-current liabilities - provisions
Long service leave
Consolidated
30 June 2018
$
-
30 June 2017
$
98,082
Accounting policy for other long-term employee benefits
The liability for annual leave and long service leave not expected to be settled within 12
months of the reporting date are measured at 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 wage and salary
levels, experience of employee departures and periods of service. Expected future payments
are discounted using market yields at the reporting date on corporate bonds with terms to
maturity and currency that match, as closely as possible, the estimated future cash outflows.
40
Renascor Resources Limited ABN 90 135 531 341 annual report 2018
Notes to the financial statements
18 Equity - issued capital
Consolidated
2018
Shares
2017
Shares
2018
$
2017
$
Ordinary shares - fully paid
961,327,113
482,793,861
28,752,262
18,628,616
Movements in ordinary share capital
Details
Balance
Date
Shares
Issue price
$
1 July 2016
284,466,527
13,235,479
Part consideration on acquisition of EPM
11 July 2016
38,666,667
$0.01
618,667
Conditional placement to directors and
professional & sophisticated investors.
Exercise of Performance Rights
Exercise of Listed Options
11 July 2016
39,266,668
11 July 2016
25 August 2016
600,001
32,500
Exercise of Listed Options
6 October 2016
46,487,767
$0.02
$0.00
$0.03
$0.03
589,000
-
975
1,394,633
Underwriter’s shortfall re exercise of
Listed Options
Underwriter’s optional placement
to sophisticated investors
Underwriter’s optional placement
Bizzell Capital Partners
Consideration on completion
acquisition of EPM
Less: Transaction costs arising on
share issues, net of tax
Balance
Conditional placement to
10 October 2016
17,871,714
$0.03
536,152
21 October 2016
10,733,333
$0.03
322,000
5 December 2016
2,600,000
$0.03
78,000
5 December 2016
42,068,684
$0.05
2,040,000
30 June 2017
482,793,861
18,628,616
-
$0.00
(186,290)
professional & sophisticated investors.
27 September 2017
120,698,060
$0.02
2,051,867
Issue of Ordinary Shares as part of
Non-Executive Director’s Share Plan.
3 October 2017
2,574,404
$0.02
56,593
Conditional placement to professional &
sophisticated investors
24 November 2017
58,824,140
$0.02
1,000,010
Issue of Ordinary Shares as consideration
for marketing services provided
22 December 2017
2,500,000
$0.03
80,000
Issue of Ordinary Shares as consideration
for marketing services provided
28 February 2018
2,500,000
$0.03
85,000
Issue of Ordinary Shares as part of
Non-Executive Director’s Share Plan.
28 February 2018
2,317,889
$0.04
93,644
Conditional placement to professional
& sophisticated investors.
8 May 2018
159,302,080
$0.03
4,301,156
Issue of Ordinary Shares pursuant
to Share Purchase Plan
Issue of Ordinary Shares as consideration
1 June 2018
45,877,699
$0.03
1,238,698
for marketing services provided
1 June 2018
2,500,000
$0.03
67,500
Conditional placement to professional &
sophisticated investors
29 June 2018
81,438,980
$0.03
2,198,852
Less: Transaction costs arising on share
issues, net of tax
Balance
30 June 2018
961,327,113
28,752,262
-
$0.00
(1,049,674)
41
Renascor Resources Limited ABN 90 135 531 341 annual report 2018
Notes to the financial statements
18 Equity - issued capital continued
Ordinary shares
Ordinary shares entitle the holder to participate in dividends and the proceeds on the winding
up of the Company in proportion to the number of and amounts paid on the shares held. The
fully paid ordinary shares have no par value and the Company does not have a limited amount
of authorised capital.
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.
Share buy-back
There is no current on-market share buy-back.
Capital risk management
The Group’s objectives when managing capital is to safeguard its ability to continue as a going
concern, so that it can provide returns for shareholders and benefits for other stakeholders
and to maintain an optimum capital structure to reduce the cost of capital.
Capital is regarded as total equity, as recognised in the statement of financial position, plus net
debt. Net debt is calculated as total borrowings less cash and cash equivalents.
In order to maintain or adjust the capital structure, the Group may adjust the amount of
dividends paid to shareholders, return capital to shareholders, issue new shares or sell assets
to reduce debt.
The Group would look to raise capital when an opportunity to invest in a business or company
was seen as value adding relative to the current Company’s share price at the time of the
investment. The Group is not actively pursuing additional investments in the short term as it
continues to integrate and grow its existing businesses in order to maximise synergies.
The Group is subject to certain financing arrangements covenants and meeting these is given
priority in all capital risk management decisions. There have been no events of default on the
financing arrangements during the financial year.
The capital risk management policy remains unchanged from the 30 June 2017 Annual Report.
Accounting policy for issued capital
Ordinary shares are classified as equity.
Incremental costs directly attributable to the issue of new shares or options are shown in
equity as a deduction, net of tax, from the proceeds.
19 Equity - reserves
Options reserve
Performance rights reserve
Business combination reserve
Share-based payments reserve
Consolidated
30 June 2018
$
30 June 2017
$
1,579,734
68,284
1,332,345
68,284
(1,417,790)
(1,417,790)
230,228
(17,161)
The reserve is used to recognise the value of equity benefits provided to employees and
directors as part of their remuneration, and other parties as part of their compensation for
services.
Business combination
The 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.
42
Renascor Resources Limited ABN 90 135 531 341 annual report 2018
Notes to the financial statements
20 Equity - accumulated losses
Accumulated losses at the beginning of the financial year
Loss after income tax expense for the year
Consolidated
30 June 2018
30 June 2017
$
$
(10,493,009)
(3,434,543)
(9,407,517)
(1,085,492)
Accumulated losses at the end of the financial year
(13,927,552)
(10,493,009)
21 Equity - dividends
There were no dividends paid, recommended or declared during the current or previous financial year.
22 Financial instruments
Financial risk management objectives
The Group’s activities expose it to a variety of financial risks: market risk (including price risk
and interest rate risk), credit risk and liquidity risk. The Group’s overall risk management
program focuses on the unpredictability of financial markets and seeks to minimise potential
adverse effects on the financial performance of the Group. 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:
Consolidated
30 June 2018
30 June 2017
$
$
8,188,830
288,551
1,230,213
39,076
8,477,381
1,269,289
530,949
72,227
603,176
109,237
174,988
284,225
Financial assets
Cash and cash equivalents
Other receivables
Total financial assets
Financial liabilities at amortised cost
Trade and other payables
Sundry creditors & accrued expenses
Total financial liabilities at amortised cost
Market risk
Price risk
The Group is not exposed to any significant price risk.
Interest rate risk
As at 30 June 2018 and 30 June 2017, the Group had no borrowings. As such the group is not
exposed to any significant interest rate risk.
At the reporting date, the Company is exposed to changes in market interest rates through its
bank deposits, which are subject to variable interest rates.
43
Renascor Resources Limited ABN 90 135 531 341 annual report 2018
Notes to the financial statements
22 Financial instruments continued
The following table illustrates the sensitivity of the net result for the year and equity to a
reasonably possible change in interest rates of +0.50% and -0.05% (2017: +0.05%/-0.05%), with
effect from the beginning of the year. These changes are considered to be reasonably possible
based on observation of current market conditions. The calculations are based on the cash
and cash equivalents held at the beginning of each reporting period. All other variables are
held constant.
Basis points increase
Basis points decrease
Basis
points change
Effect on profit
before tax
Effect on
equity
Basis
points change
Effect on profit
before tax
Effect on
equity
Consolidated - 2018
Cash and cash equivalents
50
6,151
6,151
(50)
(6,151)
(6,151)
Consolidated - 2017
Cash and cash equivalents
50
4,312
4,312
(50)
(4,312)
(4,312)
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
Liquidity risk
Consolidated
30 June 2018
$
30 June 2017
$
8,188,830
1,230,213
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 $8,188,830 (2017: $1,230,213) 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.
Remaining contractual maturities
The following tables detail the Group’s remaining contractual maturity for its financial
instrument liabilities. The tables have been drawn up based on the undiscounted cash flows
of financial liabilities based on the earliest date on which the financial liabilities are required
to be paid. The tables include both interest and principal cash flows disclosed as remaining
contractual maturities and therefore these totals may differ from their carrying amount in the
statement of financial position.
44
Renascor Resources Limited ABN 90 135 531 341 annual report 2018
Notes to the financial statements
22 Financial instruments continued
Weighted
average
interest rate
%
1 year
or less
$
Between
1 and 2
years
$
Between
2 and 5
years
$
Over
Remaining
contractual
5 years maturities
$
$
Consolidated – 2018
Non-derivatives
Non-interest bearing
Trade payables
Total non-derivatives
Consolidated – 2017
Non-derivatives
Non-interest bearing
Trade payables
Total non-derivatives
-
603,176
603,176
-
284,225
284,225
-
-
-
-
-
-
-
-
-
-
-
-
603,176
603,176
284,225
284,225
The cash flows in the maturity analysis above are not expected to occur significantly earlier than contractually
disclosed above.
Fair value of financial instruments
Unless otherwise stated, the carrying amounts of financial instruments reflect their fair value.
23 Key management personnel disclosures
Compensation
The aggregate compensation made to directors and other members of key management
personnel of the Group is set out below:
Short-term employee benefits
Post-employment benefits
Long-term benefits
Share-based payments
Consolidated
30 June 2018
30 June 2017
$
702,112
45,786
14,844
63,195
825,937
$
713,245
46,844
27,333
81,500
868,922
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.
45
Renascor Resources Limited ABN 90 135 531 341 annual report 2018
Notes to the financial statements
23 Key management personnel disclosures continued
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 $44,351 (2017: $133,900) from Euro.
An amount of $8,353 (2017: $1,846) was owing to Euro at 30 June 2018.
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 $73,300
(2017: $69,850) from CGAA. An amount of $15,730 (2017: $4,235) was owing to CGAA at 30 June 2018.
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 $168,515
(2017: $170,687) from BCP. An amount of $23,207 (2017: $Nil) was owing to BCP at 30 June 2018.
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 $Nil (2017: $5,100) from Arion Legal of which $Nil
(2017: $5,100) was included as a legal expense during the financial year. No amount was owing to Arion Legal
at 30 June 2018 (2017: $Nil).
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. 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.
24 Remuneration of auditors
During the financial year the following fees were paid or payable for services provided by
BDO Audit (SA) Pty Ltd, the auditor of the Company:
Consolidated
30 June 2018
$
30 June 2017
$
Audit services - BDO Audit (SA) Pty Ltd
Audit or review of the financial statements
33,594
30,593
Other 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
4,735
4,526
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
2,450
7,185
40,779
24,000
28,526
59,119
46
Renascor Resources Limited ABN 90 135 531 341 annual report 2018
Notes to the financial statements
25 Commitments
In order to maintain current rights to tenure to exploration tenements, the Group is
required to perform minimum exploration work to meet the minimum expenditure
requirements specified by various State governments. These amounts are subject to
renegotiation when application for a mining lease is made and at other times. These
amounts, which are not provided for in the financial report and are expected to be
capitalised as incurred but not recognised as liabilities, are as follows:
Exploration and mining lease commitments
Commitments in relation to exploration and mining leases held at
the end of each reporting period but not recognised as
liabilities, payable:
Within one year
One to five years
Consolidated
30 June 2018
30 June 2017
$
$
1,356,827
345,000
1,185,195
477,500
1,701,827
1,662,695
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.
26 Related party transactions
Parent entity
Renascor Resources Limited is the parent entity.
Subsidiaries
Interests in subsidiaries are set out in note 28.
Key management personnel
Disclosures relating to key management personnel are set out in note 23 and the remuneration
report included in the directors’ report.
Transactions with related parties
There were no transactions with related parties during the current and previous financial year,
aside from those set out in note 23.
Receivable from and payable to related parties
There were no trade receivables from or trade payables to related parties at the current and
previous reporting date, aside from those set out in note 23.
Loans to/from related parties
There were no loans to or from related parties at the current and previous reporting date.
47
Notes to the financial statements
27 Parent entity information
Set out below is the supplementary information about the parent entity.
Statement of profit or loss and other comprehensive income
Loss after income tax
Total comprehensive income
Statement of financial position
Total current assets
Total assets
Total current liabilities
Total liabilities
Equity
Issued capital
Options reserve
Performance rights reserve
Accumulated losses
Total equity
Parent
30 June 2018
$
(5,391,426)
(5,391,426)
30 June 2017
$
(820,378)
(820,378)
8,486,231
1,280,151
15,880,906
10,594,447
825,968
825,968
421,036
519,118
28,751,962
1,579,734
68,284
18,628,316
1,332,345
68,284
(15,345,042)
(9,953,616)
15,054,938
10,075,329
Guarantees entered into by the parent entity in relation to the debts of its subsidiaries
The parent entity had no guarantees in relation to the debts of its subsidiaries as at 30 June 2018.
Contingent liabilities
In the year ended 30 June 2017 the Parent Entity had entered into Asset Sale Agreements with
Hillment Pty Ltd to acquire tenement EL4570 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.
Capital commitments - Property, plant and equipment
The parent entity had no capital commitments for property, plant and equipment as at
30 June 2018.
Significant accounting policies
The accounting policies of the parent entity are consistent with those of the Group, as disclosed in
note 1, except for the following:
•
•
•
Investments in subsidiaries are accounted for at cost, less any impairment, in the parent entity.
Investments in associates are accounted for at cost, less any impairment, in the parent entity.
Dividends received from subsidiaries are recognised as other income by the parent entity and
its receipt may be an indicator of an impairment of the investment.
48
Notes to the financial statements
28 Interests 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:
Name of entity
Principal place of business/
Country of incorporation
Kurilpa Uranium Pty Ltd
Astra Resources Pty Ltd
Sol Jar Property Pty Ltd
Eyre Peninsula Minerals Pty Ltd
Australia
Australia
Australia
Australia
29 Events after the reporting period
Ownership interest
2018
%
100
100
100
100
2017
%
100
100
100
100
On the 5th of July 2018, the Company announced its intention, subject to shareholder
approval, to exercise its option to acquire a 100% interest in the Siviour Graphite Project
by the issue of approximately 189.6 million shares in Renascor. Shareholder approval
for this transaction was obtained in the Extraordinary General Meeting on the 3rd of
September 2018.
On the 22nd of August 2018, an agreement was entered into by the Company with the
owners of the property that hosts the Siviour Graphite Project. The agreement provides
the Company with access rights to the property to undertake drilling, collect bulk sample
material and carry out other work programs. The agreement further grants the Company
the right to acquire an option to purchase the land, with the price to be determined
following an independent appraisal.
On the 28th of August 2018, the Company lodged a Mining Lease Application for Siviour
Graphite Project with the South Australia Department for Energy and Mining.
On the 10th of September 2018, infill drilling was commenced at the Company’s Siviour
Graphite Project. The drill program will focus on close-spaced drilling within the Siviour
Indicated Resource to permit detailed mine planning for the Siviour Definitive Feasibility
Study.
No other matter or circumstance has arisen since 30 June 2018 that has significantly
affected, or may significantly affect the Group’s operations, the results of those operations,
or the Group’s state of affairs in future financial years.
49
Notes to the financial statements
30 Reconciliation of loss after income tax to net cash used in operating activities
Loss after income tax expense for the year
Adjustments for:
Depreciation and amortisation
Share-based payments
Research & Development claim received
Write off exploration/inventories
Change in operating assets and liabilities:
Decrease in other operating assets
Increase/(decrease) in provisions
Increase/(decrease) in trade and other payables
(Increase)/decrease in other receivables
Consolidated
30 June 2018
30 June 2017
$
$
(3,434,543)
(1,085,492)
2,130
282,944
-
2,494,640
2,113
87,691
318,951
(249,475)
3,000
-
26,628
374,343
4,925
32,137
(44,567)
115,643
Net cash used in operating activities
(495,549)
(573,383)
Non-cash financing and investing activities
Shares issued to non-executive directors in lieu of 50% of
cash director fees
Shares issued to consultants for no cash consideration for
marketing services
Options issued to lead managers for no cash consideration
for capital raising services
Shares and options issued to vendors of EPM for no cash
consideration in respect of the acquisition of EPM
(150,237)
(232,500)
(247,389)
-
-
-
-
(2,658,667)
(630,126)
(2,658,667)
50
Notes to the financial statements
31 Earnings per share
Loss after income tax attributable to the owners of
Renascor Resources Limited
Basic earnings per share
Diluted earnings per share
Consolidated
30 June 2018
30 June 2017
$
$
(3,434,543)
(1,085,492)
Cents
(0.5)
(0.5)
Cents
(0.2)
(0.2)
Number
Number
Weighted average number of ordinary shares used in
calculating basic earnings per share
642,520,257
440,830,590
Weighted average number of ordinary shares used in
calculating diluted earnings per share
642,520,257
440,830,590
Options and performance rights are considered anti-dilutive as the Group is loss making.
At 30 June 2018 there were 129,761,096 anti-dilutive options (2017: 15,000,000)
Accounting policy for earnings per share
Basic earnings per share
Basic earnings per share is calculated by dividing the profit attributable to the owners of
Renascor Resources Limited, excluding any costs of servicing equity other than ordinary shares,
by the weighted average number of ordinary shares outstanding during the financial year,
adjusted for bonus elements in ordinary shares issued during the financial year.
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 shares
assumed to have been issued for no consideration in relation to dilutive potential ordinary
shares.
32 Share-based payments
Share based payments to directors and executives
During the year ended 30 June 2018, 50% of non-executive director fees were withheld by the Company
pursuant to the NEDSP. Shares to the value of $150,237 were issued during the year under the NEDSP.
However, $98,125 of the shares issued related to the period 1 April 2016 to 30 June 2017.
As at 30 June 2018 the NEDSP shares pertaining to the period 1 March 2018 to 30 April 2018 had not been
issued and were settled by a cash payment in September 2018.
There are no options that have been granted to directors and senior management as part of their
remuneration (2017: Nil).
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 (2017: $Nil).
51
Notes to the financial statements
32 Share-based payments continued
Share based payments to consultants
During the year the amount of the equity settled share-based payment recognised in the
current period in respect of shares issued to consultants was $232,500 (2017: $Nil). These
shares were issued as consideration for marketing services provided. The consultants received
7,500,000 ordinary shares (2017: Nil)
The amount of equity settled share-based payment recognised in the current period in respect
of capital raising activities was $247,389 (2017: $Nil). 25,000,000 listed options granted during
the year were issued to the Lead Mangers as consideration for capital raising services provided
(2017:Nil).
There were no options granted during the year in respect of exploration and evaluation
activities (2017: 15,000,000). The amount of equity settled share-based payment recognised in
the current period in respect of exploration and evaluation activities was $Nil (2017: $359,123).
Set out below are summaries of the granted options:
Expiry
date
Exercise
price
Balance
start of
the year
Number
Granted
Number
Exercised
Number
Expired/
forfeited/
other
Number
Balance
at end of
the year
Number
Grant
date
2018
05/12/2016
05/12/2019
28/11/2017
31/10/2019
$0.05
$0.03
15,000,000
-
-
25,000,000
15,000,000
25,000,000
-
-
-
-
-
-
15,000,000
25,000,000
40,000,000
Weighted average exercise price
$0.05
$0.03
$0.00
$0.00
$0.04
2017
05/12/2016
05/12/2019
$0.05
15,000,000
15,000,000
-
-
-
-
-
-
15,000,000
15,000,000
Set out below are the options exercisable at the end of the financial year:
Grant date
Expiry date
05/12/2016
05/12/2019
28/11/2017
31/10/2019
2018
Number
2017
Number
15,000,000
15,000,000
114,761,096
-
129,761,096
15,000,000
The weighted average remaining contractual life of options outstanding at the end of the financial year was
1.4 years (2017: 2.5 years).
Performance rights granted to directors and senior management
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 (2017: $Nil).
52
Notes to the financial statements
32 Share-based payments continued
Set out below are summaries of performance rights granted to directors and senior management:
Grant
date
2017
Expiry
date
Exercise
price
28/02/2014
28/02/2021
30/11/2012
30/11/2019
$0.00
$0.00
Balance
start of
the year
Number
105,001
495,000
600,001
Granted
Number
Exercised
Number
Expired/
forfeited/
other
Number
Balance
at end of
the year
Number
-
-
-
(105,001)
(495,000)
(600,001)
-
-
-
-
-
-
The weighted average remaining contractual life of performance rights outstanding at the end of the
financial year was 0 years (2017: 0 years).
Fair value of options granted:
The assessed fair value at grant date of options is allotted equally over the period from grant date to
vesting date. The fair value was independently determined using a Black Scholes option pricing model.
that takes into account the exercise price, the term of the option, the vesting and performance criteria (if
applicable), the impact of dilution, the non-tradable nature of the option (if applicable), 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.
For the options granted during the current financial year, the valuation model inputs used to determine
the fair value at the grant date, are as follows:
Grant date
Expiry date
at grant date
price
Share price
Exercise
Expected
volatility
Dividend
Risk-free
Fair value
yield
interest rate
at grant date
28/11/2017
31/10/2019
$0.03
$0.03
96.14%
-
1.98%
$0.010
Historical volatility of a group of comparable companies has been the basis of determining
expected share price volatility, as it is assumed that this is indicative of future movements. No
adjustment has been made to the life of the option based on no past history regarding expected
exercise or any variation of the expiry date. Accordingly, the expected life of the options has been
taken to the full period of time from grant date to expiry date, which may fail to eventuate in the
future.
Accounting policy for share-based payments
Share-based compensation benefits are provided to directors, executives and consultants through
the granting of share options and performance rights.
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.
53
Renascor Resources Limited ABN 90 135 531 341 annual report 2018
Notes to the financial statements
32 Share-based payments continued
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.
Market conditions are taken into consideration in determining fair value. Therefore any awards
subject to market conditions are considered to vest irrespective of whether or not that market
condition has been met, provided all other conditions are satisfied.
If equity-settled awards are modified, as a minimum an expense is recognised as if the
modification has not been made. An additional expense is recognised, over the remaining
vesting period, for any modification that increases the total fair value of the share-based
compensation benefit as at the date of modification.
If the non-vesting condition is within the control of the Group or employee, the failure to satisfy
the condition is treated as a cancellation. If the condition is not within the control of the Group
or employee and is not satisfied during the vesting period, any remaining expense for the
award is recognised over the remaining vesting period, unless the award is forfeited.
If equity-settled awards are cancelled, it is treated as if it has vested on the date of cancellation,
and any remaining expense is recognised immediately. If a new replacement award is
substituted for the cancelled award, the cancelled and new award is treated as if they were a
modification.
54
Directors’ declarartion
In the directors’ opinion:
• the attached financial statements and notes comply with the Corporations Act 2001,
the Accounting Standards, the Corporations Regulations 2001 and other mandatory
professional reporting requirements;
• the attached financial statements and notes comply with International Financial
Reporting Standards as issued by the International Accounting Standards Board as
described in note 1 to the financial statements;
• the attached financial statements and notes give a true and fair view of the Group’s
financial position as at 30 June 2018 and of its performance for the financial year
ended on that date; and
• there are reasonable grounds to believe that the Company will be able to pay its
debts as and when they become due and payable.
The directors have been given the declarations required by section 295A of the
Corporations Act 2001.
Signed in accordance with a resolution of directors made pursuant to section 295(5)(a)
of the Corporations Act 2001.
On behalf of the directors
David Christensen
Director
28 September 2018
55
Renascor Resources Limited annual report 2018
Independent auditor’s report
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 2018, 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)
Giving a true and fair view of the Group’s financial position as at 30 June 2018 and of its
financial performance for the year ended on that date; and
(ii)
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.
Material uncertainty related to going concern
We draw attention to Note 1 in the financial report which describes the events and/or conditions
which give rise to the existence of a material uncertainty that may cast significant doubt about
the group’s ability to continue as a going concern and therefore the group may be unable to
realise its assets and discharge its liabilities in the normal course of business. Our opinion is not
modified in respect of this matter.
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.
56
Independent auditor’s report
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.
Recoverability of exploration and evaluation assets.
Key Audit Matter
How the matter was addressed in our audit
The Group carries significant exploration and
Our procedures, amongst others, included:
evaluation assets of $7,369,924 as at 30 June 2018
Evaluating management’s assessment of
as disclosed in note 14 to the financial statements.
whether impairment indicators in accordance
The carrying value of exploration and evaluation
assets represents a significant asset of the group
and assessing whether facts or circumstances exist
with AASB 6 Exploration for and Evaluation of
Mineral Resources have been identified across
the group’s exploration projects.
to suggest that impairment indicators were
Verifying a sample of current tenement
present, and if present, whether the carrying
licences to determine whether the group has
amount of this asset may exceed its recoverable
the rights to tenure and maintain the
amount.
tenements in good standing.
This assessment involves significant judgement
applied by management and was considered key to
Obtaining the exploration budget for the 2019
financial year to assess whether there is
the audit.
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.
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 2018 and the
shareholder information, 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 highlights and
achievements, Chairman’s letter to shareholders and review of operations, 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.
57
Renascor Resources Limited annual report 2018
Independent auditor’s report
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 highlights and achievements, Chairman’s letter to shareholders and review of
operations, 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.
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 15 to 21 of the directors' report for
the year ended 30 June 2018.
In our opinion, the Remuneration Report of Renascor Resources Limited, for the year ended 30
June 2018, complies with section 300A of the Corporations Act 2001.
58
Independent auditor’s report
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 2018
59
Renascor Resources Limited annual report 2018
Shareholder information
The shareholder information set out below was applicable as at 21 September 2018.
Distribution of equity securities
Analysis of numbers of equity security holders by size of holding:
Holding
1 – 1000
1,001 – 5,000
5,001 – 10,000
10,001 – 100,000
100,001 and over
Holding less than a marketable parcel
Ordinary Shares Unlisted Options
Listed Options
45
18
65
795
913
1,836
362
2
1
–
22
88
113
5
–
–
–
–
11
11
–
Equity security holders: Twenty largest quoted equity security holders
The names of the twenty largest holders of quoted equity securities are listed below:
Name
1 Mr Richard Edward Keevers
2 Citicorp Nominees Pty Limited
3 Mr David Vigolo
4 Rookharp Investments Pty Limited
5 Mr Brendan James Borg & Mrs Erin Belinda Borg
6 Avanteos Investments Limited
7 Dr Leon Eugene Pretorius
8 Casalamada Pty Ltd
9 Mr Douglas Young
10 Mrs Tracey Ann Mezzino
11 CPS Control Systems Pty Limited
12 Z International (Hkg) Ltd
13 Mr Brian Laurence Eibisch
14 David Christensen
15 Bizzell Capital Partners Pty Ltd
16 Mr Gregory Michael Josephson & Mrs Mary Margaret Josephson
17 Cannc Consulting Pty Ltd
18 Geoffrey William Mcconachy
19 Finn Air Holdings Pty Ltd
20 Bizzell Nominees Pty Ltd
Ordinary Shares
Number held
shares issued
% of total
39,678,858
28,742,513
27,000,000
26,500,000
19,555,555
18,500,000
16,000,000
15,753,240
14,482,148
11,500,000
11,291,112
11,000,000
10,900,000
9,952,941
9,833,334
9,601,010
8,916,666
7,668,000
7,400,000
7,258,333
4.13
2.99
2.81
2.76
2.03
1.92
1.66
1.64
1.51
1.20
1.17
1.14
1.13
1.04
1.02
1.00
0.93
0.80
0.77
0.76
311,533,710
32.41
60
Shareholder information
Option holders:
Name
JEkor Pty Ltd
Rookharp Investments Pty Limited
Zenix Nominees Pty Ltd
Z International (Hkg) Ltd
Kojen Pty Ltd
Mr Basil Andre Sean Pereira
Mr Brendan James Borg & Mrs Erin Belinda Borg
Mr Neal Brent Birchall
Bizzell Nominees Pty Ltd
Mr Tze Hao Teo
Mr Andrew Charles Alexander Mackenzie
Mr Luke Jones
Mastermines (Australia) Pty Ltd
CPS Group Investments Pty Ltd
Gillam Super Investments Pty Ltd
M & K Korkidas Pty Ltd
Bizzell Capital Partners Pty Ltd
HSBC Custody Nominees (Australia) Limited
HSBC Custody Nominees (Australia) Limited
PCAS (Australia) Pty Ltd
Unquoted equity securities
Options over ordinary shares issued
Substantial holders
There are no substantial holders in the Company.
Voting rights
The voting rights attached to ordinary shares are set out below:
Listed Option over ordinary shares
Number held
15,345,000
% of total listed
options isssued
13.37
8,249,667
8,000,000
7,375,000
5,925,000
5,539,914
5,500,000
5,488,093
5,000,000
3,499,429
2,500,000
2,400,000
1,900,000
1,544,118
1,453,000
1,250,000
1,250,000
1,205,500
1,176,475
1,000,000
7.19
6.97
6.43
5.16
4.83
4.79
4.78
4.36
3.05
2.18
2.09
1.66
1.35
1.27
1.09
1.09
1.05
1.03
0.87
85,601,196
74.61
Number
on issue
15,000,000
Number
of holders
11
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.
Restricted Securities
No restricted securities were on issue at 21 September 2018.
There are no other classes of equity securities.
61
Renascor Resources Limited annual report 2018
Shareholder information
Interests in tenements at 21 September 2018
Description
Malbrom
Lipson Cove
Verran
Malbrom West
Dutton Bay
Willouran
Callanna
Wompinie
Outalpa
Cutana
Iron Baron
Old Wartaka
Carnding
Lake Harris
Munglinup
Kokatha*
* Tenement under review
Tenement number
% Interest owned
EL 6197
EL 5495
EL 5618
EL 5714
EL 6032
EL 6170
EL 5586
EL 6190
EL 5584
EL 5585
EL 5822
EL 6191
EL 5856
EL 5927
E 74/538
ELA 2018/113
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
–
62
Renascor Resources Limited
Business objectives
ABN 90 135 531 341
Renascor Resources is an Australian-based
Directors
Richard Keevers (Non-Executive Chairman)
David Christensen (Managing Director)
Geoffrey McConachy (Executive Director)
Chris Anderson (Non-Executive Director)
Stephen Bizzell (Non-Executive Director)
Andrew Martin (Non-Executive Director -
resigned 20 November 2017)
Secretary
Pierre van der Merwe
(Appointed 4 June 2018)
Angelo Gaudio
(Resigned 4 June 2018)
Administration and
principal place of business
36 North Terrace
Kent Town SA 5067
Phone: + 61 8 8363 6989
Fax: +61 8 8363 4989
Website: www.renascor.com.au
Renascor Resources Limited shares
are listed on the Australian Securities
Exchange —
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
company focused on the development of
economically viable deposits containing
graphite and other minerals. Renascor
has an extensive tenement portfolio,
holding interests in key mineral provinces
of South Australia and Western Australia.
Its projects include the Siviour graphite
project near Arno Bay, South Australia. The
principal activity of the Group during the
financial year was mineral exploration and
evaluation.
Corporate Governance Statement
The board of directors of the Company
(“Board”) is responsible for the corporate
governance of the Company. The board
guides and monitors the business
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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t
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r
i
d
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o
p
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63
64