Renascor Resources Limited annual report 2021
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Renascor Resources Limited annual report 2021 Renascor Resources Limited
ABN 90 135 531 341
Renascor Resources is powering the clean
energy transition through the development
of its Siviour Graphite and Battery Anode
Material Project in South Australia.
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. Mrs Standing consents to the
inclusion in the report of a summary based upon her information in the form and context in which it appears.
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). Mr Brown consents to the inclusion in
the report of the matters based on the reviewed information in the form and context in which it appears.
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.
Contents
Chairman’s letter
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
‘Siviour: a world-class graphite project’
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Renascor Resources Limited annual report 2021
From the Chairman
Dear Shareholder,
I am very pleased to present
Renascor’s Annual Report for the year
ending 30 June 2021.
In the past year, we made significant
progress in advancing our flagship
Siviour Battery Anode Material Project
in South Australia and our plans
to develop a vertically integrated
graphite mine and manufacturing
operation to produce a long-term
source of Purified Spherical Graphite
(PSG) for the lithium-ion battery
market.
We achieved several breakthroughs
that confirm the project is among
the most competitive graphite
developments globally and offers
leading ESG credentials underpinned
by our commitment to maintaining
high environmental standards in
supplying ethically-sourced, 100%
Australian-made graphite products.
Key achievements have included:
• Offtakeagreementswithleadinglithium-ionanode
companies
During the past year, we announced four non-
binding offtake agreements for the sale of up to
60,000 tonnes of PSG from Siviour. With preliminary
offtake agreements in place with Chinese anode
companies, Minguang New Material and Zeto, Japan-
based global trading company, Hanwa Co Ltd., and
South Korean conglomerate POSCO, we have made
considerable progress in our goal of becoming a
leading supplier to the lithium-ion battery anode
market.
• Commitmenttosustainability
We are committed to maintaining high
environmental standards in all aspects of our
operations. As part of this commitment, we have
continued to develop a downstream purification
technology that offers environmental benefits over
the prevailing technology, which relies on potentially
harmful hydrofluoric (HF) acid to produce battery
grade graphite. Our HF-free technology has already
been first-stage qualified by a number of our offtake
partners, and we are confident that our current work
programs will continue to demonstrate that we can
successfully produce PSG with leading environmental
credentials.
• Globalcompetitiveness
We are also committed to developing a competitive
operation, and we believe we can produce high
quality PSG at globally competitive costs by
leveraging off the scale and quality of our Siviour ore
body, which is currently the second largest Proven
Reserve of graphite in the world and the largest
graphite Reserve outside of Africa. During the year,
we made important advancements to our proposed
mineral processing circuits that offer the potential
to introduce further efficiencies in our operation.
Locked cycle trials of our flotation circuit resulted
in potential improvements to both purities and
recoveries for our Graphite Concentrate production.
On our downstream operation, advanced testing of
our HF-free purification technology achieved results
of up to 99.99% carbon (versus the industry standard
of 99.95%), the highest purity levels achieved by
Renascor to date.
4
• Large-scalepilotproduction
We successfully completed large-scale pilot flotation
trials at an independent commercial graphite facility.
The trials processed over 70 tonnes of Siviour ore,
producing bulk quantities of Graphite Concentrates
for downstream equipment trials and customer
testing. The results of the trials, which achieved
purity and recovery levels above parameters
adopted in the Siviour Definitive Feasibility Study,
suggest opportunities for greater efficiencies in the
concentrate operation as we prepare for detailed
engineering in the current year.
• Governmentsupport
As we have continued to advance Siviour, we are
grateful for the recognition the project has received
from the Government, including being granted
Major Project Status and being included as the only
graphite deposit in the Australian Government’s
‘Resources Technology and Critical Minerals
Processing National Manufacturing Priority road
map’. Additional governmental support for the
project includes in principle financial support from
both the Clean Energy Finance Corporation and
Export Finance Australia. We have also received
strong support from both the Federal and South
Australian Departments of Trade for our potential to
produce 100% Australian-made products for leading
global lithium-ion battery anode manufacturers.
The advances achieved during the year on our Siviour
project, together with the improving outlook for the
lithium-ion battery market, has led us to bring forward
feasibility work on expanding our production of PSG.
With potential commitments for up to two times our
current Stage One production capacity of 28,000 tonnes
of PSG, we are currently considering both expansions
to our Stage One production capacity and an additional
Stage Two capacity. These expansions offer the
potential to achieve greater returns from Siviour as
we move forward with our work programs in the
current year.
While we made significant progress during the year,
we recognise that COVID-19 continues to present
challenges that require prudence and flexibility in
operations. Renascor has responded by adapting
work practices to allow our business to continue our
activities, while keeping our employees, their families
and the communities in which we are active safe and
healthy.
With the work undertaken last year, together with our
current work programs and the improving outlook for
lithium-ion battery minerals, we believe there is strong
potential for continued positive responses from the
equity market for Renascor.
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.
Your sincerely,
Dick Keevers,
Chairman
FederalMinisterforResources
KeithPitt(right)with
RenascorManagingDirector
DavidChristensen(June2021).
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Renascor Resources Limited annual report 2021 Directors’ Report 2021
6
Directors’ Report 2021
Business objectives
Siviour Graphite Project
Renascor Resources is an Australian-based company
focused on the development of economically viable
minerals. Renascor has an extensive tenement portfolio,
holding interests in the key mineral provinces of South
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, 4th 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
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 2021.
Dividends
There were no dividends paid, recommended or
declared during the current or previous financial year.
Review of operations
Company overview
Renascor Resources Limited (Renascor) is an ASX-listed,
Australian-based company focused on the development
of economically viable deposits containing graphite,
gold, copper and other minerals.
Renascor’s activities during the past financial year were
primarily directed at developing the Siviour Graphite
Project (Siviour).
Other projects
In addition to its activities at Siviour, Renascor has
maintained a strong exploration portfolio, identifying
and maintaining a strong pipeline of targets for
development of gold, copper, nickel, cobalt and other
mineral assets.
On the 10 August 2020 the Company announced the
expansion of the Carding Gold Project in the Central
Gawler Craton with the approval of an exploration
licence EL6585 that includes the area immediately north
of the Soyuz Prospect.
On the 27 October 2020 the Company announced a
binding farm-in agreement with Rio Tinto. This farm-
in is part of the Company’s Marree Project in South
Australia’s Adelaide Fold Belt.
Corporate and financial
For the year ended 30 June 2021 the loss for the Group
after providing for income tax amounted to $877,230
(2020: $1,072,575).
To support the Group’s exploration activities and
developing the Siviour Graphite Project, the Company
raised $17,882,412 (after capital raising costs) via
placements to professional and sophisticated investors.
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
No matter or circumstance has arisen since 30 June
2021 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.
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Renascor Resources Limited annual report 2021 financial statements Directors’ Report 2021
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.
Climate Change
The Group recognises the growing interest of our
stakeholders in relation to the potential risks and
opportunities posed to our business, and the broader
sector, in response to climate change and the
anticipated global transition towards a lower carbon
economy.
Key climate-related risks and opportunities relevant to
our business include:
• Communities and society expect a response from
companies in relation to climate change, inaction
could potentially lead to resistance or blockage of the
project if there is a lack of strategy from the Group’s
transition to a lower carbon economy.
• Current and potential future investors are
increasingly focused on ESG aspects of projects
giving rise to possible financial and reputational risk.
• We believe this transition into a lower carbon
economy gives rise to opportunities for our Battery
Anode Material Project, with demand for Purified
Spherical Graphite forecast to grow significantly in
line with the increase in Electric vehicle adoption and
unprecedented global demand for batteries.
• The physical impacts of climate change including
changes to weather patterns have the potential to
impact upon operations.
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Directors’ Report 30 June 2021
Information on Directors
David Christensen
ManagingDirector
Richard (Dick) Keevers
Non-ExecutiveChairman
Experience and expertise:
Experience and expertise:
David Christensen is an experienced mining executive,
with successful experience managing exploration,
mining and marketing operations. Prior to founding
the Company, David served as Chief Executive Officer
of Adelaide-based companies, Heathgate Resources Pty
Ltd and Quasar Resource Pty Ltd. While at Heathgate
and Quasar, his responsibilities included overseeing
Australian operations, including the Beverley uranium
mine, as well as the expansion into new projects with
the discovery and development of the Four Mile deposit
and numerous joint ventures. David’s experience
also includes serving as President of Nuclear Fuels
Corporation, a trading and marketing company, where
he managed a multi-million dollar uranium portfolio and
was responsible for developing sales strategy, executing
trades and swaps and negotiating all contracts. David
commenced his career as an attorney in California
and London offices of international law firm Latham
& Watkins, where he advised on corporate finance
and mergers and acquisitions. David was educated
at Cornell University (BA, Economics and Classical
Civilizations), the University of California, Los Angeles
(JD) and the Universitá di Bologna (Fulbright Fellow).
Other current directorships: None
Former directorships (last 3 years): None
Interests in shares: 30,377,207
Interests in options: 250,000
Interests in rights: 6,000,000
Dick Keever’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 and industrial companies,
and he is currently a non-executive director of Santana
Minerals Limited. Prior to joining the Renascor board,
Dick served as chairman of unlisted Eyre Peninsula
Minerals Proprietary Limited (EPM).
Other current directorships: Santana Minerals Limited
Former directorships (last 3 years): None
Interests in shares: 49,193,324
Interests in options: 500,000
Stephen Bizzell
Non-ExecutiveDirector
Experience and expertise:
Stephen Bizzell is Chairman of boutique corporate
advisory and funds management group Bizzell Capital
Partners. He has over 25 years corporate finance
and public company management experience in the
resources sector in Australia and Canada. Stephen
was previously an Executive Director of Arrow Energy
from 1999 until its acquisition in 2010 by Royal Dutch
Shell and PetroChina for $3.5 billion. Stephen was
instrumental in Arrow’s corporate and commercial
success and its growth from a junior explorer to a large
integrated energy company. Stephen spent his early
career in the corporate finance division of Ernst & Young
and the tax division of Cooper & Lybrand and qualified
as a Chartered Accountant. He is also a former director
of Queensland Treasury Corporation.
Other current directorships: Laneway Resources Limited,
Armour Energy Limited, Strike Energy Limited,
Maas Group Holdings Limited and Challenger Energy
Group Plc.
Former directorships (last 3 years): Stanmore Coal Limited
(2009 to 2020), UIL Energy Limited (2014 to 2018)
Interests in shares: 49,504,201
Interests in options: 5,318,182
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Renascor Resources Limited annual report 2021 financial statements Information on Directors
Geoffrey McConachy
Non-ExecutiveDirector
Experience and expertise:
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: 10,381,385
‘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 secretaries
Pierre van der Merwe is an accountant of more
than 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, 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.
Pierre was company secretary of the following ASX listed
companies, amongst others:
• Bondi Mining Ltd (ASX ‘BOM’) which changed it’s
name to World Titanium Resources Ltd
• Papyrus Australia Ltd (ASX ‘PPY’)
• Terramin Australia Ltd (ASX ‘TZN’) during its transition
from exploration to mining at its Strathalbyn site
He spent part of 2016 and 2017 assisting an unlisted
public company, 1414 Degrees Ltd, as company
secretary with its preparation for IPO on the ASX (Listed
10 September 2018 at market capitalisation of $46m –
ASX ‘14D’).
Jon Colquhoun is an experienced accountant with a
broad financial and commercial background across a
range of industries assisting with CFO and company
secretary roles for large private and listed companies.
Mr Colquhoun holds a Bachelor of Commerce from the
University of Adelaide, is a Registered Company Auditor
and a member of Chartered Accountants Australia and
New Zealand.
Meetings of directors
The number of meetings of the Company’s Board of
Directors (‘the Board’) held during the year ended 30
June 2021, and the number of meetings attended by
each director were:
Full Board
Audit & Risk
Committee
Attended Held
Attended Held
Richard Keevers
David Christensen
Geoffrey McConachy
Stephen Bizzell
5
5
5
5
5
5
5
5
2
2
2
2
2
2
2
2
Held: represents the number of meetings held during the time the
director held office.
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Directors’ Report 30 June 2021
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
• 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.
Relationship between remuneration and Group
performance:
During the financial year, the Group has generated
losses as its principal activity was developing the Siviour
Graphite Project and exploration for graphite, copper,
gold and other minerals within South Australia. As
the Group is still in the development, 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.
11
Renascor Resources Limited annual report 2021 financial statements Remuneration report (audited)
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;
• 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;
• 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 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 26
November 2020 Annual General Meeting (‘AGM’)
At the 26 November 2020 AGM, 95.96% of the votes
received supported the adoption of the remuneration
report for the year ended 30 June 2020. The Company
did not receive any specific feedback at the AGM
regarding its remuneration practices.
12
Directors’ Report 30 June 2021
Details of remuneration
Amounts of remuneration
Details of the remuneration of key management personnel of the Group are set out in the following tables:
Short-term benefits
Post-employment
benefits
Long-term
benefits
Share-based payment
Cash salary
and fees
$
38,000
46,576
38,000
2021
Non-Executive Directors:
Stephen Bizzell*
Richard Keevers*
Geoffrey McConachy*
Executive Directors:
Non-
monetary Superannuation
$
$
Long service Performance NEDSP &
rights director’s
$ shares $
leave
$
Total
$
-
-
-
-
4,945
-
-
-
-
-
-
-
4,800
42,800
5,479
57,000
4,000
42,000
David Christensen**
296,880
10,963
21,694
7,540
13,666
21,120
371,863
Other Key Management Personnel:
Pierre van der Merwe***
120,123
-
-
-
-
-
120,123
539,579
10,963
26,639
7,540
13,666
35,399
633,786
*
**
From 1 April 2020 the Non- Executive directors agreed to a 20% reduction in their directors fees to support the Company through the
economic uncertainty caused by the COVID-19 pandemic the Non-Executive directors fees where reinstated to 100% on 1 October 2020.
Short term benefits paid to Mr Christensen includes $30,000 in annual leave entitlements paid during the year. Mr Christensen also
accrued $7,540 in unpaid long service leave entitlements during the year.
*** From 1 April 2020 Mr van der Merwe agreed to a 17% reduction in his Company Secretarial and CFO fees to support the
Company through the economic uncertainty caused by the COVID-19 pandemic Mr van der Merwe fees were reinstated to 100% on
1 October 2020.
For the period 1 April 2020 to 30 September 2020 50% of the non-executive director fees were paid in cash, with the
remaining 50% of the fees to be settled by the issues of shares pursuant to the NEDSP. The shares for the period 1
April 2020 to 30 September 2020 have been issued. The NEDSP plan ceased on 30 September 2020.
Commencing 1 May 2020 Mr Christensen received payment for 90% of his directors fees, with 10% of his fees
withheld by the Company to be paid via the issue of share capital subject to shareholder approval. The shares for
the period 1 May 2020 to 30 September 2020 were issued following shareholder approval at the 2020 AGM, shares
for the period 1 October 2020 to 30 June 2021 have not been issued.
13
Renascor Resources Limited annual report 2021 financial statements
Remuneration report (audited)
Short-term benefits
Post-employment
benefits
Long-term
benefits
Share-based payment
Cash salary
and fees
$
34,000
46,576
34,000
2020
Non-Executive Directors:
Stephen Bizzell*
Richard Keevers*
Geoffrey McConachy*
Executive Directors:
Non-
monetary Superannuation
$
$
Long service Performance NEDSP &
rights director’s
$ shares $
leave
$
Total
$
-
-
-
-
4,945
-
-
-
-
-
-
-
4,000
38,000
5,479
57,000
4,000
38,000
David Christensen**
269,760
9,706
21,003
6,840
70,259
3,840
381,408
Other Key Management Personnel:
Pierre van der Merwe***
123,345
-
-
-
-
-
123,345
507,681
9,706
25,948
6,840
70,259
17,319
637,753
*
**
From 1 April 2020 the Non- Executive directors agreed to a 20% reduction in their directors fees to support the Company through the
economic uncertainty caused by the COVID-19 pandemic.
Short term benefits paid to Mr Christensen includes $24,000 in annual leave entitlements paid during the year. Mr Christensen also
accrued $6,840 in unpaid long service leave entitlements during the year.
***
From 1 April 2020 Mr van der Merwe agreed to a 17% reduction in his Company Secretarial and CFO fees to support the Company
through the economic uncertainty caused by the COVID-19 pandemic.
The proportion of remuneration linked to performance and the fixed proportion are as follows:
Name
Non-Executive Directors:
Stephen Bizzell
Richard Keevers
Geoffrey McConachy
Executive Directors:
David Christensen*
Fixed remuneration
At risk - STI
At risk - LTI
2021
2020
2021
2020
2021
2020
100%
100%
100%
100%
100%
100%
99%
81%
-
-
-
-
-
-
-
-
-
-
-
-
-
-
1%
19%
*
During the year ended 30 June 2019 shareholders granted approval for the issue of performance rights to Mr David Christensen.
Further information pertaining to the Performance Rights can be found in Note 31. “Share Based Payments”. The total value of
performance-related bonuses paid to key management personnel and executives during the year was $13,666 (2020: $70,259).
Key management personnel and executives were not paid cash bonuses during the years ended 30 June 2021
and 2020.
14
Directors’ Report 30 June 2021
Service agreements
Share-based compensation
Issue of shares
During the period 1 July 2020 to 30 September 2020,
50% of non-executive director fees totaling $14,279
were withheld by the Company pursuant to the Non-
Executive Director Share Plan (“NEDSP”) (2020: $13,479).
As at 30 June 2021 the shares pertaining to the the
period 1 April 2020 to 30 September 2020 had been
issued.
During the period 1 October 2020 to 30 April 2021
executive director fees totaling $15,360 were withheld
by the Company to be issued as shares at a later date
when shareholder approval is obtained (2020: $3,840).
As at 30 June 2021 the shares pertaining to the the
period 1 April 2020 to 30 September 2020 had been
issued.
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 2021.
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
Term of agreement:
Indefinite term, subject to six-month’s notice or a
termination payment of six months.
Details:
Per annum rate of $312,000, exclusive of
superannuation. In addition, David is also entitled to
private health insurance.
Pierre van der Merwe,
Chief Financial Officer and Company Secretary
Term of agreement:
The agreement may be terminated by either party on
one months’ notice.
Details:
Services are provided at a rate of $10,000 per month
plus GST plus expenses. However, at 1 April 2020 it
was agreed that during the COVID-19 pandemic the fee
for services provided would be reduced to $8,333 per
month for an indefinite period of time. At 1 October
2020 fees were reinstated to $10,000 per month.
Key management personnel have no entitlement to
termination payments in the event of removal for
misconduct.
15
Renascor Resources Limited annual report 2021 financial statements
Remuneration report (audited)
Performance rights
The terms and conditions of each grant of performance rights over ordinary shares affecting remuneration of
directors and other key management personnel in this financial year or future reporting years are as follows:
Grant date
Expiry date
Share price hurdle for vesting
Fair value per right at grant date
Tranche B
3 September 2018
3 September 2022
Tranche C
3 September 2018
Vested during the year
$0.00
$0.06
$0.020
$0.008
Performance rights granted carry no dividend or voting rights
Details of performance rights over ordinary shares granted, vested and lapsed for directors and other key
management personnel as part of compensation during the year ended 30 June 2021 are set out below:
Name
Grant date
Number
of rights
granted
Number
of rights
vested
Value of
rights
granted
$
Value of
rights expensed in
the period
$
Number
of rights
lapsed
Value of
rights
lapsed
$
David Christensen 3 September 2018
6,000,000
-
13,666
-
-
-
Further information regarding the Performance Rights can be found in Note 31. “Share Based Payments”.
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 2021 are summarised below:
2021
$
2020
$
2019
$
2018
$
2017
$
(Loss) for the year attributable to owners ($)
(877,230)
(1,072,575)
(1,321,558)
(3,434,543)
(1,085,492)
Increase/(decrease) in share price (%)
680%
(52%)
5%
25%
(25%)
The factors that are considered to affect total shareholders return (‘TSR’) are summarised below:
Share price at financial year end (cents)
Basic earnings per share (cents per share)
2021
6.8
(0.1)
2020
2019
2018
1.0
(0.1)
2.1
(0.1)
2.0
(0.5)
2017
1.6
(0.2)
16
Directors’ Report 30 June 2021
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
Stephen Bizzell
David Christensen
Richard Keevers
Geoffrey McConachy
Option holding
Balance at
the start of
the year
Performance
rights vested
& exercised
Additions
Other
Balance at
the end of
the year
38,122,982
-
11,381,219
23,064,637
6,000,000
1,312,570
47,265,810
9,704,244
-
-
1,927,514
677,141
-
-
-
-
49,504,201
30,377,207
49,193,324
10,381,385
118,157,673
6,000,000
15,298,444
- 139,456,117
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
Stephen Bizzell
David Christensen
Richard Keevers
Balance at
the start of
the year
Acquired
Exercised
Lapsed
Balance at
the end of
the year
-
-
-
-
5,318,182
250,000
500,000
6,068,182
-
-
-
-
-
-
-
-
5,318,182
250,000
500,000
6,068,182
Performance rights holding
The number of performance rights 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:
Performance rights over ordinary shares
David Christensen
Balance at
the start of
the year
Granted
Vested &
exercised
Expired/
forfeited/
other
Balance at
the end of
the year
12,000,000
12,000,000
-
-
(6,000,000)
(6,000,000)
-
-
6,000,000
6,000,000
17
Renascor Resources Limited annual report 2021 financial statements
Remuneration report (audited)
Other transactions with key management
personnel and their related parties
Mr G W McConachy is director 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
$68,664 (2020: $24,376) from Euro. An amount of $3,214
(2020: $2,677) was owing to Euro at 30 June 2021.
Mr G W McConachy provided the company with
exploration consulting services during the year. The
services provided are based on normal commercial
terms and conditions. During the financial year the
Company incurred costs of $38,399 (2020: $4,287) from
GW MCConachy & Co Pty Ltd. An amount of $9,075
(2020: $Nil) was owing to GW MCConachy & Co Pty Ltd
at 30 June 2021.
Mr S Bizzell is a director of Bizzell Capital Partners Pty
Ltd (BCP). BCP has provided corporate advisory services
to the company in relation to its capital raisings. The
services provided are based on normal commercial
terms and conditions. During the financial year the
Company incurred corporate advisory fees from BCP of
$14,630 (2020: $Nil). An amount of $3,667 of director’s
fees was owing to BCP at 30 June 2021 (2020: $5,867).
Mr D Christensen had incurred expenses throughout
year on behalf of the company. At 30 June 2021 a
reimbursement to Mr Christensen of $2,184 was
outstanding (2020: $5,509).
This concludes the remuneration report, which
has been audited.
18
Directors’ Report 30 June 2021
Shares under option
At the date of this report, the following options to
acquire ordinary shares in the Company were on issue:
0.
Grantdate
Expirydate
Exercise
price
Number
underoption
29/12/2020
31/12/2022
$0.02
162,907,274
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
Unissued ordinary shares of Renascor Resources
Limited under performance rights at the date of this
report are as follows:
Grantdate
Expirydate
Exercise
price
Number
underrights
03/09/2018
03/09/2022
$0.00
6,000,000
No person entitled to exercise the performance rights
had or has any right by virtue of the performance right
to participate in any share issue of the Company or of
any other body corporate.
Shares issued on the exercise of options
The following ordinary shares of Renascor Resources
Limited were issued during the year ended 30 June 2021
and up to the date of this report on the exercise
of options granted:
Dateoptionsgranted
25/03/2021
21/04/2021
Exercise
price
Numberof
sharesissued
$0.02
100,000
$0.02
19,401,818
19,501,818
Shares issued on the exercise of performance
rights
The following ordinary shares of Renascor Resources
Limited were issued during the year ended 30 June 2021
and up to the date of this report on the exercise
of performance rights granted:
Dateperformancerightsissued
Exercise
price
Numberof
sharesissued
30/04/2021
$0.00
6,000,000
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.
19
Renascor Resources Limited annual report 2021 financial statements
Remuneration report (audited)
Non-audit services
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
30 September 2021
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 22 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 22 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.
20
30 June 2021
Auditor’s independence declaration
text to go here
Tel: +61 8 7324 6000
Fax: +61 8 7324 6111
www.bdo.com.au
Level 7, BDO Centre
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 for the year ended 30 June 2021, I declare that, to the best of
my knowledge and belief, there have been:
1. No contraventions of the auditor independence requirements of the Corporations Act 2001 in
relation to the audit; and
2. 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, 30 September 2021
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.
21
Renascor Resources Limited annual report 2021 financial statements
Financial statements
Statement of profit or loss and
other comprehensive income
Statement of financial position
Statement of changes in equity
Statement of cash flows
Notes to the financial statements
Directors’ declaration
Independent auditor’s report to the members
of Renascor Resources Limited
Shareholder information
23
24
25
26
27
57
58
62
22
Statement of profit or loss and other
comprehensive income
Revenue
Other income
Interest revenue
Boosting cashflow payment
Total revenue
Expenses
Administration and consulting
Depreciation and amortisation expense
Employee benefits expense
Office accommodation
Impairment of exploration expenditure
Legal fees
Other expenses
Total expenses
Loss before income tax expense
Income tax expense
Loss after income tax expense for the year
Other comprehensive income for the year, net of tax
Total comprehensive income for the year
Basic earnings per share
Diluted earnings per share
Theabovestatementofprofitorlossandothercomprehensiveincome
shouldbereadinconjunctionwiththeaccompanyingnotes
Note
Consolidated
2021
$
8,000
3,778
2020
$
-
19,598
-
100,000
11,778
119,598
(424,832)
(362,327)
(1,823)
(2,065)
5
6
(324,364)
(364,391)
(30,596)
(30,388)
-
(274,109)
(13,998)
(6,384)
7
(93,395)
(152,509)
(889,008)
(1,192,173)
(877,230)
(1,072,575)
-
-
(877,230)
(1,072,575)
-
-
(877,230)
(1,072,575)
Cents
Cents
(0.1)
(0.1)
(0.1)
(0.1)
8
18
30
30
23
Renascor Resources Limited annual report 2021 financial statements
Statement of financial position
Assets
Current assets
Cash and cash equivalents
Other receivables
Prepayments
Total current assets
Non-current assets
Other receivables
Property, plant and equipment
Exploration and evaluation
Development asset
Total non-current assets
Total assets
Liabilities
Current liabilities
Trade and other payables
Provisions
Total current liabilities
Total liabilities
Net assets
Equity
Issued capital
Reserves
Accumulated losses
Total equity
Theabovestatementoffinancialpositionshouldbereadinconjunction
withtheaccompanyingnotes
24
Consolidated
2021
2020
(Restated)
Note
$
$
9
17,273,801
1,855,784
10
109,420
206,675
67,305
13,566
17,450,526
2,076,025
10
11
12
13
45,000
30,000
9,559
3,679
1,659,037
1,250,654
17,060,233
15,134,752
18,773,829
16,419,085
36,224,355
18,495,110
14
15
441,226
231,476
601,324
100,677
1,042,550
332,153
1,042,550
332,153
35,181,805
18,162,957
16
17
18
51,903,152
34,114,480
247,340
(1,277,856)
(16,968,687)
(14,673,667)
35,181,805
18,162,957
Statement of changes in equity
Contributed
equity
Share-based
Business
Payments Combination
Reserve
Reserve
Share option Accumulated
losses
reserve
Total equity
Consolidated
$
$
$
$
$
$
Balance at 1 July 2019
32,210,012
1,825,693
(1,417,790)
Loss after income tax expense
for the year
Other comprehensive income
for the year, net of tax
Total comprehensive income
for the year
Lapse of options (note 31)
Performance rights vested
(note 31)
Transfer of historical
performance rights
Transactions with owners in their
capacity as owners:
Contributions of equity, net
of transaction costs (note 16)
Share-based payments
(note 31)
-
-
-
-
-
-
-
(1,579,734)
108,000
(108,000)
-
(68,284)
1,796,468
-
-
70,259
-
-
-
-
-
-
-
-
Balance at 30 June 2020
34,114,480
139,934
(1,417,790)
Consolidated
$
$
$
Balance at 1 July 2020
34,114,480
139,934
(1,417,790)
Loss after income tax expense
for the year
Other comprehensive income
for the year, net of tax
Total comprehensive income
for the year
Performance rights vested
(note 31)
-
-
-
-
-
-
45,600
(45,600)
-
-
-
-
Transfer to accumulated losses
-
-
1,417,790
Transactions with owners in their
capacity as owners:
Contributions of equity, net
of transaction costs (note 16)
Share-based payments
(note 31)
17,639,714
-
103,358
13,666
Balance at 30 June 2021
51,903,152
108,000
-
-
-
-
-
-
-
-
-
-
-
-
-
$
-
-
-
-
-
-
-
139,340
(15,249,110)
17,368,805
(1,072,575)
(1,072,575)
-
-
(1,072,575)
(1,072,575)
1,579,734
-
68,284
-
-
-
-
-
1,796,468
70,259
(14,673,667)
18,162,957
$
$
(14,673,667)
18,162,957
(877,230)
(877,230)
-
-
(877,230)
(877,230)
-
(1,417,790)
-
-
-
-
17,639,714
256,364
139,340
(16,968,687)
35,181,805
Theabovestatementofchangesinequityshouldbereadinconjunctionwiththeaccompanyingnotes
25
Renascor Resources Limited annual report 2021 financial statements
Statement of cash flows
Cash flows from operating activities
Payments to suppliers and employees (inclusive of GST)
Receipts/(payments) of GST
Interest received
Other revenue
Consolidated
2021
$
2020
$
Note
(728,952)
(1,248,298)
(3,903)
197,313
3,778
8,000
19,598
8,724
Net cash used in operating activities
29
(721,077)
(1,022,663)
Cash flows from investing activities
Payments for property, plant and equipment
Payments for exploration and evaluation
Payments for development assets
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/(decrease) in cash and cash equivalents
Cash and cash equivalents at the beginning of the financial year
(7,703)
(1,925)
(408,383)
(437,427)
(1,327,232)
(1,356,512)
(1,743,318)
(1,795,864)
16
19,205,735
1,883,000
(1,323,323)
(86,532)
17,882,412
1,796,468
15,418,017
(1,022,059)
1,855,784
2,877,843
Cash and cash equivalents at the end of the financial year
9
17,273,801
1,855,784
Theabovestatementofcashflowsshouldbereadinconjunction
withtheaccompanyingnotes
26
Notes to the financial statements 30 June 2021
1. Significant accounting policies
Critical accounting estimates
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.
The following Accounting Standards and
Interpretations are most relevant to the Group:
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 2021. The
Group has not yet assessed the impact of these
new or amended Accounting Standards and
Interpretations.
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.
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.
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 26.
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 2021 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.
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.
27
Renascor Resources Limited annual report 2021 financial statements
1. Significant accounting policies continued
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.
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.
Revenue recognition
The Group recognises revenue as follows:
Other revenue
Revenue from contracts with customers
Revenue is recognised at an amount that reflects
the consideration to which the Group is expected
to be entitled in exchange for transferring goods
or services to a customer. For each contract with a
customer, the Group: identifies the contract with a
customer; identifies the performance obligations
in the contract; determines the transaction price
which takes into account estimates of variable
consideration and the time value of money;
allocates the transaction price to the separate
performance obligations on the basis of the
relative stand-alone selling price of each distinct
good or service to be delivered; and recognises
revenue when or as each performance obligation
is satisfied in a manner that depicts the transfer to
the customer of the goods or services promised.
Variable consideration within the transaction
price, if any, reflects concessions provided to
the customer such as discounts, rebates and
refunds, any potential bonuses receivable from
the customer and any other contingent events.
Such estimates are determined using either the
‘expected value’ or ‘most likely amount’ method.
The measurement of variable consideration
is subject to a constraining principle whereby
revenue will only be recognised to the extent that
it is highly probable that a significant reversal in
the amount of cumulative revenue recognised will
not occur. The measurement constraint continues
until the uncertainty associated with the variable
consideration is subsequently resolved. Amounts
received that are subject to the constraining
principle are recognised as a refund liability.
Other revenue is recognised when it is received or
when the right to receive payment is established.
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.
28
Notes to the financial statements for the year ended 30 June 2021
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.
Impairment of non-financial assets
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.
1. Significant accounting policies continued
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.
Renascor Resources Limited (the ‘head entity’)
and its wholly-owned Australian subsidiaries
have formed an income tax consolidated group
under the tax consolidation regime. The head
entity and each subsidiary in the tax consolidated
group continue to account for their own current
and deferred tax amounts. The tax consolidated
group has applied the ‘separate taxpayer within
group’ approach in determining the appropriate
amount of taxes to allocate to members of the tax
consolidated group.
In addition to its own current and deferred tax
amounts, the head entity also recognises the
current tax liabilities (or assets) and the deferred
tax assets arising from unused tax losses and
unused tax credits assumed from each subsidiary
in the tax consolidated group.
Assets or liabilities arising under tax funding
agreements with the tax consolidated entities
are recognised as amounts receivable from or
payable to other entities in the tax consolidated
group. The tax funding arrangement ensures that
the intercompany charge equals the current tax
liability or benefit of each tax consolidated group
member, resulting in neither a contribution by the
head entity to the subsidiaries nor a distribution
by the subsidiaries to the head entity.
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.
29
Renascor Resources Limited annual report 2021 financial statements
1. Significant accounting policies continued
2.
Critical accounting judgements, estimates
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 31.
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 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.
30
Notes to the financial statements for the year ended 30 June 2021
2.
Critical accounting judgements, estimates and
assumptions continued
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 12.
Development assets
Critical estimates and judgments are disclosed in
Note 13.
31
Renascor Resources Limited annual report 2021 financial statements
3. Restatement of comparatives
Correction of error
During the year ended 30 June 2020, the Siviour project cost was reclassified from exploration and evaluation
assets into development assets, as a definitive feasibility study indicated commercial viability of the project.
On review of the costs transferred across, it was noted that not all of the relevant costs had been reclassified
to development assets.
A retrospective restatement of the amounts at 30 June 2020 has no impact on total or net assets, does
not change calculations of recoverable amount for development assets completed for the year ended
30 June 2020, and has no impact on earnings per share previously reported.
The additional amount to be reclassified from exploration and evaluation assets to development assets at
30 June 2020 is $1,600,000.
Statement of financial position at the beginning of the earliest comparative period
When there is a restatement of comparatives, it is mandatory to provide a third statement of financial position
at the beginning of the earliest comparative period, being 1 July 2019. However, as there were no adjustments
made as at 1 July 2019, the Group has elected not to show the 1 July 2019 statement of financial position.
Restated amounts for 30 June 2020 are as follows:
Line items affected:
Reported
$
Restated
$
Change
$
Exploration and evaluation assets
2,850,654
1,250,654
(1,600,000)
Development assets
Non-current assets
Total assets
Net assets
4. Operating segments
13,534,752
15,134,752
1,600,000
16,419,085
16,419,085
18,495,110
18,495,110
18,162,957
18,162,957
-
-
-
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
development of the Siviour Graphite Project and 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.
32
Notes to the financial statements for the year ended 30 June 2021
5. Employee benefits expense
Employee benefits expense
Employee share-based payment expense
Defined contribution superannuation expense
Employee benefits expense capitalised
Consolidated
2021
$
2020
$
547,542
490,426
13,666
70,259
35,355
33,166
(272,199)
(229,460)
324,364
364,391
Employee share-based payment expense comprises of Performance Rights granted to Mr David Christensen.
Further information pertaining to the Performance Rights can be found in Note 31 “Share Based Payments”.
Included in the totals above is the employee benefits expenditure that has been capitalised as part of
Exploration and evaluation assets (note 12) and Development assets (note 13). The total amount of employee
benefits expenditure capitalised in the year ended 30 June 2021 is $272,199 (2020: $229,460). The total
amount remunerated to employees during the year is $475,550 (2020: $593,851).
6. Office accommodation
Short term lease expense
7. Other expenses
Business development & marketing
Investor and public relations
Travel
Other expenses
Consolidated
2021
$
2020
$
30,596
30,388
Consolidated
2021
$
2020
$
28,208
17,942
30,307
5,907
36,766
17,794
28,973
80,007
93,395
152,509
33
Renascor Resources Limited annual report 2021 financial statements
8.
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 26% (2020: 27.5%)
Tax effect amounts which are not deductible/(taxable) in calculating taxable income:
Share-based payments
Boosting Cashflow Payment
Current year temporary differences not recognised
Income tax expense
Consolidated
2021
$
2020
$
(877,230)
(1,072,575)
(228,080)
(294,958)
3,553
19,321
-
(27,500)
(224,527)
(303,137)
224,527
303,137
-
-
The Group has tax losses arising in Australia of $25,867,963 (2020: $22,840,659) 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 2021 (2020: Nil).
No deferred tax liability has been recognised for expenditure pertaining to exploration and evaluation. The
amount of $4,554,818 is fully offset by the company’s deferred tax assets (2020: $4,299,587).
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.
9. Cash and cash equivalents
Current assets
Cash on hand
Cash at bank
Consolidated
2021
$
2020
$
100
100
17,273,701
1,855,684
17,273,801
1,855,784
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.
34
Notes to the financial statements for the year ended 30 June 2021
10. Other receivables
Current assets
GST refundable
Sundry receivables
Research and development tax concession
Non-current assets
Other receivables
Consolidated
2021
$
2020
$
47,192
5,207
9,009
50,000
53,219
151,468
109,420
206,675
45,000
30,000
154,420
236,675
Allowance for expected credit losses
The Group has recognised a loss of $Nil (2020: $Nil) in profit or loss in respect of the expected credit losses for
the year ended 30 June 2021.
The ageing of the receivables and allowance for expected credit losses provided for above are as follows:
Expected credit loss rate
Carrying amount
Allowance for expected
credit losses
Consolidated
Not overdue
2021
%
-
2020
%
2021
$
2020
$
2021
$
2020
$
-
113,792
206,675
-
-
Accounting policy for trade and other receivables
Trade receivables are initially recognised at fair value and subsequently measured at amortised cost using the
effective interest method, less any allowance for expected credit losses. Trade receivables are generally due
for settlement within 30 days.
The Group has applied the simplified approach to measuring expected credit losses, which uses a lifetime
expected loss allowance. To measure the expected credit losses, trade receivables have been grouped based
on days overdue.
Other receivables are recognised at amortised cost, less any allowance for expected credit losses.
35
Renascor Resources Limited annual report 2021 financial statements
11. Property, plant and equipment
Non-current assets
Computer equipment
Less: Accumulated depreciation
Office equipment
Less: Accumulated depreciation
Consolidated
2021
$
2020
$
27,731
24,385
(22,151)
(20,921)
5,580
7,764
3,464
3,407
(3,785)
(3,192)
3,979
215
9,559
3,679
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 2019
Additions
Write off of assets
Depreciation expense
Balance at 30 June 2020
Additions
Depreciation expense
Balance at 30 June 2021
Computer
equipment
$
Office
equipment
$
Total
$
4,662
1,923
(841)
(2,065)
3,679
7,703
340
-
-
(125)
215
4,357
(593)
(1,823)
3,979
9,559
4,322
1,923
(841)
(1,940)
3,464
3,346
(1,230)
5,580
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 deprecation rates have not changed from the financial year ended 30 June 2020.
36
Notes to the financial statements for the year ended 30 June 2021
11.
Property, plant and equipment continued
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.
12. 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 2019
Expenditure during the year
Payment for option to purchase land
Impairment of assets
Other
tenements
$
Siviour
Project
$
Total
$
3,066,444
11,967,648
15,034,092
58,319
1,074,089
1,132,408
-
225,000
225,000
(274,109)
-
(274,109)
Reclassification to development asset in November 2019
(1,600,000)
(13,266,737)
(14,866,737)
Balance at 30 June 2020 (restated)
Expenditure during the year
Receipts from farm-in
Balance at 30 June 2021
1,250,654
458,383
(50,000)
1,659,037
-
-
-
-
1,250,654
458,383
(50,000)
1,659,037
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 $272,199 of internal personnel costs (2020: $229,460) which form part of the exploration
expenditure for the year.
37
Renascor Resources Limited annual report 2021 financial statements
13. Development asset
Non-current assets
Siviour project - at cost
Reconciliations
Consolidated
2021
2020
(Restated)
$
$
17,060,233
15,134,752
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 2019
Siviour
Project
$
-
Total
$
-
Reclassification from exploration and evaluation asset in November 2019 (see note 12)
14,866,737
14,866,737
Expenditure after reclassification
Research and Development Tax Incentive #
Balance at 30 June 2020 (restated)
Expenditure after reclassification
Research and Development Tax Incentive #
Balance at 30 June 2021
Assessing impairment on reclassification
419,483
419,483
(151,468)
(151,468)
15,134,752
15,134,752
1,978,700
1,978,700
(53,219)
(53,219)
17,060,233
17,060,233
The development asset had been assessed for impairment on reclassification from exploration and evaluation
expenditure. In determining the recoverable amount of the asset, estimates were made regarding the present
value of future cashflows. These estimates require significant management judgments and assumptions and
are subject to risk and uncertainty that may be beyond the control of the group. The recoverable amount
estimate is most sensitive to assumptions regarding the long-term forecasts of production capacity, graphite
prices and discount rates.
The Company has considered market conditions and changes to these estimates and is satisfied that there is
no impairment to the carrying value of the development asset.
The main estimates and assumptions used are as follows:
• Production: the model is based on staged development with average production of 80ktpa during the first
4 years, before expansion to 144ktpa in years 5 to 10.
• Graphite prices: prices are based on the latest internal forecasts taking into account expected demand and
supply, benchmarked with external sources of information.
• Discount rate: a discount rate 10% has been used for financial modelling.
38
Notes to the financial statements for the year ended 30 June 2021
13. Development asset continued
Accounting policy for development assets
Expenditure is transferred from ‘Exploration and evaluation assets’ to ‘Development asset’ once the work
completed to date supports the future development of the property and such development receives
appropriate approvals.
After transfer of the exploration and evaluation assets, all subsequent expenditure on the construction,
installation or completion of infrastructure facilities is capitalised in ‘development asset’. Development
expenditure is net of proceeds from the sale of ore extracted during the development phase to the extent that
it is considered integral to the development of the asset.
Any costs incurred in the testing of assets to determine if they are functioning as intended, are capitalised, net
of any proceeds received from selling any product produced while testing. Where these proceeds exceed the
cost of testing, any excess is recognised in the statement of profit or loss and other comprehensive income.
After production starts, all assets included in “Development asset’ are then transferred to ‘Producing mine’.
# 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 development asset.
14. Trade and other payables
Current liabilities
Trade and other payables
Sundry creditor and accrued expenses
Consolidated
2021
$
2020
$
389,026
170,265
52,200
61,211
441,226
231,476
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.
39
Renascor Resources Limited annual report 2021 financial statements
15. Provisions
Current liabilities
Annual leave
Long service leave
Settlement
Consolidated
2021
$
2020
$
17,603
25,262
83,721
75,415
500,000
-
601,324
100,677
Accounting policy for provisions
Provisions are recognised when the Group has a present (legal or constructive) obligation as a result of a past
event, it is probable the Group will be required to settle the obligation, and a reliable estimate can be made of
the amount of the obligation. The amount recognised as a provision is the best estimate of the consideration
required to settle the present obligation at the reporting date, taking into account the risks and uncertainties
surrounding the obligation. If the time value of money is material, provisions are discounted using a current
pre-tax rate specific to the liability. The increase in the provision resulting from the passage of time is
recognised as a finance cost.
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.
Amounts not expected to be settled within the next 12 months
The current provision for employee benefits includes all unconditional entitlements where employees have
completed the required period of service and also those where employees are entitled to pro-rata payments
in certain circumstances. The entire amount is presented as current, since the Group does not have an
unconditional right to defer settlement. However, based on past experience, the Group does not expect all
employees to take the full amount of accrued leave or require payment within the next 12 months.
Provision for Settlement
Renascor entered into an agreement to pay a service provider $100,000 in cash and $400,000 in cash or
shares in relation to services provides for the Siviour Definitive Feasibility Study (DFS) with a service provider
under which the service provider agreed to contribute $1 million of services towards early project works on
the basis that they may subsequently be awarded the engineering procurement and construction contract for
the Siviour project. Renascor subsequently entered into contract with this service provider to provide services
in relation the Siviour Definitive Feasibility Study (DFS), with the parties agreeing that the $1 million early
project works commitment would apply toward the DFS. In performing work in the DFS, the service provider
incurred costs exceeding the $1 million contribution amount. Subsequent to year end, Renascor has agreed to
pay $100,000 in cash and $400,000 in cash or shares in full and final satisfaction of amounts owing for services
provided in relation to the Siviour Definitive Feasibility Study.
40
Notes to the financial statements for the year ended 30 June 2021
16. Issued capital
Consolidated
2021
Shares
2020
shares
2021
$
2020
$
Ordinary shares - fully paid
1,878,711,652 1,330,606,165
51,903,152
34,114,480
Movements in ordinary share capital
Details
Balance
Date
Shares
Issue price
$
1 July 2019 1,153,424,340
32,210,012
Shares issued on vesting of performance rights
8 Nov 2019
6,000,000
$0.02
108,000
Conditional placement to professional &
sophisticated investors
Conditional placement to professional &
sophisticated investors
Issue of Ordinary Shares pursuant to Share
Purchase Plan
Issue of Ordinary Shares pursuant to
Share Purchase Plan
Less: Transaction costs arising on share issues,
net of tax
12 Dec 2019
110,454,528
$0.01
1,215,000
19 Dec 2019
2,818,200
$0.01
31,000
13 Jan 2020
45,454,552
$0.01
500,000
6 May 2020
12,454,545
$0.01
137,000
-
$0.00
(86,532)
Balance
30 June 2020 1,330,606,165
34,114,480
Issue of securities as consideration for advisory
services provided
15 July 2020
4,091,228
$0.01
33,000
Share placement
25 Sept 2020
312,681,819
$0.01
3,439,500
Issue of shares to directors in lieu of fees and
in accordance with NEDSP
15 Dec 2020
3,162,080
$0.01
37,358
Share placement to directors
16 Dec 2020
12,136,364
$0.01
133,500
Issue of securities as consideration for advisory services
15 Jan 2021
3,032,178
25 March 2021
100,000
$0.01
$0.02
33,000
2,000
21 April 2021
19,401,818
$0.02
388,036
Exercise options
Exercise options
Shares issued on vesting of performance rights
30 April 2021
6,000,000
$0.01
45,600
Share placement
4 May 2021
187,500,000
$0.08
15,000,000
Less: Transaction costs arising on share issues,
net of tax
-
$0.00
(1,323,322)
Balance
30 June 2021 1,878,711,652
51,903,152
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.
41
Renascor Resources Limited annual report 2021 financial statements
16.
Issued capital continued
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 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 2020 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.
17. Reserves
Options reserve
Performance rights reserve
Business combination reserve
Share-based payments reserve
Consolidated
2021
$
2020
$
139,340
-
108,000
139,934
-
(1,417,790)
247,340
(1,277,856)
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
Notes to the financial statements for the year ended 30 June 2021
17. Reserves continued
Movements in reserves
Movements in each class of reserve during the current and previous financial year are set out below:
Consolidated
Options
reserve
$
Performance
rights reserve
$
Business
combination
reserve
$
Total
$
Balance at 1 July 2019
1,579,734
245,959
(1,417,790)
407,903
Performance rights expensed over vesting period
Performance rights vested
Performance rights lapsed
Options lapsed
Balance at 30 June 2020
Performance rights expensed over vesting period
Performance rights vested
Options issued
Transfer to accumulated losses
-
-
-
70,259
(108,000)
(68,284)
(1,579,734)
-
-
-
-
-
70,259
(108,000)
(68,284)
(1,579,734)
-
-
-
139,340
-
139,934
(1,417,790)
(1,277,856)
13,666
(45,600)
-
-
-
-
-
13,666
(45,600)
139,340
1,417,790
1,417,790
Balance at 30 June 2021
139,340
108,000
-
247,340
18. Accumulated losses
Accumulated losses at the beginning of the financial year
Loss after income tax expense for the year
Transfer from business combination reserve
Transfer from options reserve
Transfer from performance rights reserve
Consolidated
2021
$
2020
$
(14,673,667)
(15,249,110)
(877,230)
(1,072,575)
(1,417,790)
-
-
-
1,579,734
68,284
Accumulated losses at the end of the financial year
(16,968,687)
(14,673,667)
19. Dividends
There were no dividends paid, recommended or declared during the current or previous financial year.
43
Renascor Resources Limited annual report 2021 financial statements
20. 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
2021
$
2020
$
17,273,701
1,855,784
105,573
236,675
17,379,274
2,092,459
389,026
170,265
52,201
61,211
441,227
231,476
Financial assets at amortised cost
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 2021 and 30 June 2020, 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.
The following table illustrates the sensitivity of the net result for the year and equity to a reasonably possible
change in interest rates of +0.5% and -0.5% (2020: +0.5%/-0.5%), 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.
44
Notes to the financial statements for the year ended 30 June 2021
20. Financial instruments continued
Basis points increase
Basis points decrease
Basis points Effect on profit
before tax
change
Effect on Basis points Effect on profit
before tax
change
equity
Effect on
equity
50
9,278
9,278
(50)
(9,278)
(9,278)
50
14,389
14,389
(50)
(14,389)
(14,389)
Consolidated 2021
Cash and cash
equivalents
Consolidated 2020
Cash and cash
equivalents
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.
Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial
loss to the Group. The Group does not hold any collateral to mitigate this risk.
The Group has adopted a lifetime expected loss allowance in estimating expected credit losses to trade
receivables through the use of a provisions matrix using fixed rates of credit loss provisioning. These
provisions are considered representative across all customers of the Group based on recent sales experience,
historical collection rates and forward-looking information that is available.
Generally, trade receivables are written off when there is no reasonable expectation of recovery. Indicators of
this include the failure of a debtor to engage in a repayment plan, no active enforcement activity and a failure
to make contractual payments for a period greater than 1 year.
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
2021
$
2020
$
17,273,701
1,855,784
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
$17,273,701 (2020: $1,855,784) 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.
45
Renascor Resources Limited annual report 2021 financial statements
20. Financial instruments continued
Weighted
average
interest rate
%
1 year or less
$
Between 1
and 2 years
$
Remaining
Between 2
contractual
and 5 years Over 5 years maturities
$
$
$
Consolidated 2021
Non-derivatives
Non-interest bearing
Trade payables
Other payables
Total non-derivatives
-
-
389,026
52,201
441,227
Consolidated 2020
%
$
Non-derivatives
Non-interest bearing
Trade payables
Other payables
Total non-derivatives
-
-
170,265
61,211
231,476
-
-
-
$
-
-
-
-
-
-
$
-
-
-
-
-
-
$
-
-
-
389,026
52,201
441,227
$
170,265
61,211
231,476
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.
46
Notes to the financial statements for the year ended 30 June 2021
21. 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
Performance rights
NEDSP & director’s shares
Consolidated
2021
$
2020
$
550,542
517,387
26,639
25,948
7,540
6,840
13,666
70,259
35,399
17,319
633,786
637,753
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.
Other transactions with key management personnel
Mr G W McConachy is a director 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 $68,664 (2020: $24,376) from Euro. An amount of $3,214
(2020: $2,677) was owing to Euro at 30 June 2021.
Mr G W McConachy provided the company with exploration consulting services during the year. The services
provided are based on normal commercial terms and conditions. During the financial year the Company
incurred costs of $38,399 (2020: $4,287) from GW MCConachy & Co Pty Ltd. An amount of $9,075 (2020: $Nil)
was owing to GW MCConachy & Co Pty Ltd at 30 June 2021.
Mr S Bizzell is a director of Bizzell Capital Partners Pty Ltd (BCP). BCP has provided corporate advisory services
to the company in relation to its capital raisings. The services provided are based on normal commercial terms
and conditions. During the financial year the Company incurred corporate advisory fees from BCP of $14,630
(2020: $Nil). An amount of $3,667 of director’s fees was owing to BCP at 30 June 2021 (2020: $5,867).
Mr D Christensen had incurred expenses throughout year on behalf of the company. At 30 June 2021 a
reimbursement to Mr Christensen of $2,184 was outstanding (2020: $5,509).
47
Renascor Resources Limited annual report 2021 financial statements
22. 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:
Audit services - BDO Audit (SA) Pty Ltd
Audit and review of the financial statements
Other services
Amounts paid/payable to a related practice of the auditor for tax compliance for
the entity or any entity in the Group
Amounts paid/payable to a related practice of the auditor for advisory services for the
entity or any entity in the Group
Consolidated
2021
$
2020
$
37,760
33,000
2,808
3,030
-
7,169
2,808
10,199
40,568
43,199
23. Contingent liabilities
The Group has previously entered into an Asset Sale Agreement with Hiltaba Gold Pty Ltd for EL5856 (Prev
EL4707). Under the 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.
48
Notes to the financial statements for the year ended 30 June 2021
24. 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:
Consolidated
2021
$
2020
$
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
1,869,500
2,004,500
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.
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.
25. Related party transactions
Parent entity
Renascor Resources Limited is the parent entity.
Subsidiaries
Interests in subsidiaries are set out in note 27.
Key management personnel
Disclosures relating to key management personnel are set out in note 21 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 21.
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 21.
Loans to/from related parties
There were no loans to or from related parties at the current and previous reporting date.
49
Renascor Resources Limited annual report 2021 financial statements
26. 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
2021
$
2020
$
(852,212)
(1,047,558)
(852,212)
(1,047,558)
Parent
2021
$
2020
$
17,450,426
2,075,925
36,224,359
18,495,114
1,042,551
332,157
1,042,551
332,157
51,903,152
34,114,480
139,340
-
108,000
139,934
(16,968,684)
(16,091,457)
35,181,808
18,162,957
50
Notes to the financial statements for the year ended 30 June 2021
26. Parent entity information continued
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 2021.
Contingent liabilities
The Group has previously entered into an Asset Sale Agreement with Hiltaba Gold Pty Ltd for EL5856 (Prev
EL4707). Under the 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.
Capital commitments - Property, plant and equipment
The parent entity had no capital commitments for property, plant and equipment as at 30 June 2021.
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.
27. 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
Kulripa Uranium Pty Ltd
Astra Resources Pty Ltd
Sol Jar Property Pty Ltd
Eyre Peninsula Minerals Pty Ltd
Ausmin Development Pty Ltd
Principal place of business /
Country of incorporation
2021
%
2020
%
Ownership interest
Australia
Australia
Australia
Australia
Australia
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
28. Events after the reporting period
No matter or circumstance has arisen since 30 June 2021 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.
51
Renascor Resources Limited annual report 2021 financial statements
29. 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
Write off of non-current assets
Share-based payments
Write off exploration
Change in operating assets and liabilities:
Increase/(decrease) in provisions
Increase/(decrease) in trade and other payables
(Increase)/decrease in other receivables
(Increase)/decrease in other operating assets
Net cash used in operating activities
Consolidated
2021
$
2020
$
(877,230)
(1,072,575)
1,823
2,065
-
841
13,666
70,259
-
291,157
(8,364)
(11,918)
218,761
(284,972)
(54,733)
(7,520)
(15,000)
(10,000)
(721,077)
(1,022,663)
52
Notes to the financial statements for the year ended 30 June 2021
30. Earnings per share
Loss after income tax
Basic earnings per share
Diluted earnings per share
Consolidated
2021
$
2020
$
(877,230)
(1,072,575)
cents
(0.1)
(0.1)
cents
(0.1)
(0.1)
number
number
Weighted average number of ordinary shares used in calculating basic
earnings per share
1,617,816,869
1,242,788,242
Weighted average number of ordinary shares used in calculating diluted
earnings per share
1,617,816,869
1,242,788,242
Options and performance rights are considered anti-dilutive as the Group is loss making. At 30 June 2021
were anti-dilutive options 162,907,274 (2020: $Nil) and 6,000,000 performance rights (2020: 12,000,000).
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.
53
Renascor Resources Limited annual report 2021 financial statements
31. Share-based payments
Directors and executives share based payments
For the period 1 April 2020 to 30 September 2020 50% of the non-executive director fees have been paid in
cash, with the remaining 50% of the fees settled by the issues of shares pursuant to the NEDSP as outlined
below.
Non-executive director
Richard Keevers
Stephen Bizzell
Geoffrey McConachy
Number of
Fees
shares
$10,958.00
927,514
$8,800.00
744,855
$8,000.00
677,141
Commencing 1 May 2020 Mr Christensen received payment for 90% of his directors fees, with 10% of his fees
withheld by the Company to be paid via the issue of share capital subject to shareholder approval. The shares
for the period 1 May 2020 to 30 September 2020 were issued following shareholder approval at the 2020
AGM totaling $9,600, shares for the period 1 October 2020 to 30 June 2021 had not been issued amounting to
$15,360.
There are no options that have been granted to directors and senior management as part of their
remuneration (2020: Nil).
Share based payments to consultants
During the period the amount of the equity settled share-based payment recognised in the current period in
respect of shares issued to consultants was $66,000 (2020: $Nil).
During the period 20,000,000 listed options with a fair value of $139,340 were issued to the Lead Managers as
consideration for capital raising services provided (2020:Nil). The options are exercisable at $0.02, expiring on
31 December 2022. The fair value of options issued was debited directly to issued capital, and no expense was
recognised in the period.
2021
Grant date
Expiry date
Exercise
price
Balance at
the start of
the year
Granted
Exercised
Expired
forfeited/
other
Balance
at the end
of the year
29/12/2020
31/12/2022
$0.02
-
20,000,000
-
-
20,000,000
Performance rights granted to directors and senior management
At the Extraordinary General Meeting held on 3 September 2018 Shareholders of the Company granted
approval for the issue of performance rights to Mr David Christensen. Details of the performance rights are
in the Notice of Extra Ordinary General Meeting dated 1 August 2018. However the vesting conditions are
outlined below:
Tranche A Performance Rights. 6,000,000 Performance Rights will vest upon the completion of a positive
Definite Feasibility Study in respect of the production of graphite concentrates.
Tranche B Performance Rights. 6,000,000 Performance Rights will vest upon the commencement of
construction of a commercial graphite concentrate production facility
Tranche C Performance Rights. 6,000,000 Performance Rights will vest upon (i) the share price of Renascor
ordinary shares having achieved a closing price of in excess of $0.055 for five consecutive days after the issue
date of such Performance Rights, and (ii) the date that is two and one-half years after the issue date of such
Performance Rights.
The Performance Rights are expensed over the expected vesting period. The total value of Performance Rights
recognised in the current period is $13,666 (2020: $70,259)
54
Notes to the financial statements for the year ended 30 June 2021
31. Share-based payments continued
The performance rights were valued as outlined below:
Tranche A
Tranche B
Tranche C
Total
Total value at
Expensed
grant date during the year
$
108,000
108,000
45,600
261,600
$
-
-
13,666
13,666
The tranches were valued using the Black Scholes pricing model that takes into account the term of the
Performance Rights, the vesting and performance criteria (if applicable), the non-tradable nature of the rights
(if applicable), the share price at grant date, expected price volatility of the underlying share, the expected
dividend yield, the probability that the Performance Rights will issue and the risk free interest rate for the term
of the Performance Right.
The probability that the Tranche C rights will vest (38%) was determined using the Monte Carlo simulation.
This model takes into account the randomness of the share price movements and the volatility of the
underlying share.
Set out below are summaries of performance rights granted to directors and senior management:
2021
Grant date
Expiry date
Exercise
price
Balance at
the start of
the year
Granted
Vested
Expired
forfeited/
other
Balance
at the end
of the year
03/09/2018
03/09/2022
$0.00
6,000,000
03/09/2018
03/09/2022
$0.00
6,000,000
12,000,000
2020
03/09/2018
03/09/2022
$0.00
6,000,000
03/09/2018
03/09/2022
$0.00
6,000,000
03/09/2018
03/09/2022
$0.00
6,000,000
18,000,000
-
-
-
-
-
-
-
(6,000,000)
-
(6,000,000)
(6,000,000)
-
-
(6,000,000)
-
-
-
-
-
-
-
-
6,000,000
6,000,000
-
6,000,000
6,000,000
12,000,000
Set out below are the performance rights exercisable at the end of the financial year:
Grant date
Expiry date
03/09/2018
03/09/2022
03/09/2018
03/09/2022
2021
Number
2020
Number
-
6,000,000
6,000,000
6,000,000
6,000,000
12,000,000
55
Renascor Resources Limited annual report 2021 financial statements
Notes to the financial statements for the year ended 30 June 2021
31. Share-based payments continued
The weighted average remaining contractual life of performance rights outstanding at the end of the financial
year was 1.4 years (2020: 2.4 years).
Fair value of performance rights granted:
The assessed fair value at grant date of performance rights is allotted equally over the period from grant date
to vesting date. 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.
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.
The valuation model input also assumes no dividend yield on the Performance Shares.
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.
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.
56
Directors’ declaration
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 2021 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
30 September 2021
57
Renascor Resources Limited annual report 2021 financial statements
Independent auditor’s report
to the members of Renascor Resources Limited
58
Independent auditor’s report to the members of Renascor Resources Limited
text to go here
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 2021, the
consolidated statement of profit or loss and other comprehensive income, the consolidated statement
of changes in equity and the consolidated statement of cash flows for the year then ended, and notes
to the financial report, including a summary of significant accounting policies and the directors’
declaration.
In our opinion the accompanying financial report of the Group, is in accordance with the Corporations
Act 2001, including:
(i)
(ii)
Giving a true and fair view of the Group’s financial position as at 30 June 2021 and of its
financial performance for the year ended on that date; and
Complying with Australian Accounting Standards and the Corporations Regulations 2001.
Basis for opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under
those standards are further described in the Auditor’s responsibilities for the audit of the Financial
Report section of our report. We are independent of the Group in accordance with the Corporations
Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board’s
APES 110 Code of Ethics for Professional Accountants (including Independence Standards) (the Code)
that are relevant to our audit of the financial report in Australia. We have also fulfilled our other
ethical responsibilities in accordance with the Code.
We confirm that the independence declaration required by the Corporations Act 2001, which has been
given to the directors of the Company, would be in the same terms if given to the directors as at the
time of this auditor’s report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our opinion.
Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most significance in
our audit of the financial report of the current period. These matters were addressed in the context of
our audit of the financial report as a whole, and in forming our opinion thereon, and we do not provide
a separate opinion on these matters.
BDO Audit (SA) Pty Ltd ABN 33 161 379 086 is a member of a national association of independent entities which are all members of BDO
Australia Ltd ABN 77 050 110 275, an Australian company limited by guarantee. BDO Audit (SA) Pty Ltd and BDO Australia Ltd are
members of BDO International Ltd, a UK company limited by guarantee, and form part of the international BDO network of independent
member firms. Liability limited by a scheme approved under Professional Standards Legislation.
59
Renascor Resources Limited annual report 2021 financial statements
Independent auditor’s report to the members of Renascor Resources Limited
text to go here
Recoverability of exploration and evaluation assets
KEY AUDIT MATTER
HOW THE MATTER WAS ADDRESSED IN OUR AUDIT
Refer to note 12 in the financial report.
Our procedures, amongst others, included:
As at 30 June 2021, the Group has
recognised significant exploration and
evaluation assets.
The carrying value of exploration and
evaluation assets represents a significant
asset of the group and assessing whether
facts or circumstances exist to suggest
that impairment indicators were
present, and if present, whether the
carrying amount of this asset may
exceed its recoverable amount.
This assessment involves significant
judgement applied by management and
was considered key to the audit.
•
Evaluating management’s assessment of whether impairment
indicators in accordance with AASB 6 Exploration for and
Evaluation of Mineral Resources have been identified across the
group’s exploration projects.
• Verifying current tenement licences to determine whether the
group has the rights to tenure and maintain the tenements in
good standing.
• Obtaining the exploration budget for the 2022 financial year to
assess whether there is reasonable forecasted expenditure to
confirm continued exploration spend for the projects.
• Reviewing ASX announcements and Board meeting minutes for the
year and subsequent to year end for exploration activity to
identify any indicators of impairment.
•
For each area of interest where impairment indicators existed, we
considered the completeness and accuracy of amounts impaired.
Other information
The directors are responsible for the other information. The other information comprises the
information in the Group’s annual report for the year ended 30 June 2021, but does not include the
financial report and the auditor’s report thereon.
Our opinion on the financial report does not cover the other information and we do not express any
form of assurance conclusion thereon.
In connection with our audit of the financial report, our responsibility is to read the other information
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, 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.
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.
60
Independent auditor’s report to the members of Renascor Resources Limited
text to go here
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 (http://www.auasb.gov.au/Home.aspx) at:
https://www.auasb.gov.au/admin/file/content102/c3/ar1_2020.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 11 to 18 of the directors’ report for the
year ended 30 June 2021.
In our opinion, the Remuneration Report of Renascor Resources Limited, for the year ended 30 June
2021, complies with section 300A of the Corporations Act 2001.
Responsibilities
The directors of the Company are responsible for the preparation and presentation of the
Remuneration Report in accordance with section 300A of the Corporations Act 2001. Our responsibility
is to express an opinion on the Remuneration Report, based on our audit conducted in accordance with
Australian Auditing Standards.
BDO Audit (SA) Pty Ltd
Andrew Tickle
Director
Adelaide, 30 September 2021
61
Renascor Resources Limited annual report 2021 financial statements Shareholder information
Shareholder information
62
Shareholder information
The shareholder information set out below was applicable as at 9 September 2021.
Distribution of equitable securities
Analysis of number of equitable security holders by size of holding:
1 to 1,000
1,001 to 5,000
5,001 to 10,000
10,001 to 100,000
100,001 and over
Holding less than a marketable parcel
Equity security holders
Ordinary shares
Options over ordinary shares
Number of
holders
% of total
shares issued
Number of
holders
% of total
shares issued
86
505
1,202
4,658
2,199
8,650
266
0.99
5.84
13.90
53.85
25.42
100.00
3.08
4
5
28
177
222
436
6
0.92
1.15
6.42
40.59
50.92
100.00
1.38
Twenty largest quoted equity security holders:
The names of the twenty largest security holders of quoted equity securities are listed below:
Kabininge Nominees Pty Ltd
Renascor Pty Ltd
Mr Richard Edward Keevers
HSBC Custody Nominees (Australia) Limited
David Christensen
BNP Paribas Nominees Pty Ltd ACF Clearstream
Sarwell Pty Ltd
Citicorp Nominees Pty Limited
Mr Adam Andrew MacDougall
Mrs Tracey Ann Mezzino
BNP Paribas Nominees Pty Ltd
J P Morgan Nominees Australia Pty Limited
Mr Douglas Young
RMVIC Pty Ltd
Mr Ronald Patrick O’Brien & Mrs Lynette Gaye O’Brien
CPS Control Systems Pty Limited
Elution Group Pty Ltd
Mr Timothy John Nixon Binney & Mrs Dianne Pamela Binney
BNP Paribas Nominees Pty Ltd Six Sis Ltd
Geoffrey William McConachy
Ordinary shares
Number
held
% of total
shares issued
110,930,528
56,000,000
43,782,842
37,115,325
22,573,811
22,115,135
20,000,000
19,947,925
17,875,000
13,500,000
12,529,613
11,813,098
10,400,000
10,281,135
10,252,000
9,941,112
9,500,000
9,000,000
8,299,600
7,668,000
5.90
2.98
2.33
1.98
1.20
1.18
1.06
1.06
0.95
0.72
0.67
0.63
0.55
0.55
0.55
0.53
0.51
0.48
0.44
0.41
463,525,124
24.68
63
Renascor Resources Limited annual report 2021 financial statements
Shareholder information
David Christensen
Unquoted equity securities
Options over ordinary shares issued
Substantial holders
Substantial holders in the Company are set out below:
Kabininge Nominees Pty Ltd
Voting rights
The voting rights attached to ordinary shares are set out below:
Performance rights
over ordinary shares
Performance rights
over ordinary shares
% of total
Number held
6,000,000
issued
–
Number on
issues
162,907,274
Number of
holders
436
Ordinary shares
Number held
110,930,528
% of total
shares issued
5.90
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 9 September 2021.
There are no other classes of equity securities.
Interests in tenements at 30 June 2021
Description
Malbrom - South Australia
Lipson Cove - South Australia
Verran - South Australia
Malbrom West - South Australia
Dutton Bay - South Australia
Willouran - South Australia
Flat Hill (Callanna) - South Australia
Witchelina - South Australia
Outalpa - South Australia
Cutana - South Australia
Iron Baron - South Australia
Old Wartaka - South Australia
Carnding - South Australia
Tarcoola - South Australia
Siviour Project - South Australia
64
Tenement number
Interest owned %
EL 6197
EL 6423
EL 6469
EL 5714
EL 6032
EL 6170
EL 5586
EL 6403
EL 6450
EL 6451
EL 5822
EL 6191
EL 5856
ELA 2020/00110
ML 6495
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
Shareholder information
Annual Review of Ore Reserves and Mineral Resources
In accordance with ASX Listing Rules Chapter 5, the Company has performed an annual review of all JORC-
compliant Ore Reserves and Mineral Resources as at 30 June 2021.
A maiden Mineral Resource was calculated in March 2016 as released to the ASX on March 2016 and updated in
October 2016 (ASX announcement 26 October 2017), March 2017 (ASX announcement 17 March 2017) and April
2019 (ASX announcement 30 April 2019).
An updated Ore Reserve estimate was calculated as part of the Definitive Feasibility Study in July 2020 and reported
to the ASX on 21July 2020. The Company considers this Ore Reserve to be accurate as of 30 June 2021.
Siviour Project
1. Siviour Ore Reserves Summary
Proven
Probable
Total
30 June 2021
30 June 2020
Tonnes (Mt) Grade (%TGC) Graphite (Mt)
Tonnes (Mt) Grade (%TGC) Graphite (Mt)
15.8
35.8
51.5
8.4%
6.9%
7.4%
1.3
2.5
3.8
-
-
-
-
-
-
-
-
-
2. Siviour Mineral Resources Summary
Measured
Indicated
Inferred
Total
30 June 2021
30 June 2020
Tonnes (Mt) Grade (%TGC) Graphite (Mt)
Tonnes (Mt) Grade (%TGC) Graphite (Mt)
15.8
39.5
32.1
87.4
8.8%
7.2%
7.2%
7.5%
1.4
2.8
2.6
6.6
15.8
39.5
32.1
87.4
8.8%
7.2%
7.2%
7.5%
1.4
2.8
2.6
6.6
Corporate Governance - Mineral Resource and Ore Reserve Calculations
Mineral Resources and Ore Reserves are estimated by suitably qualified consultants in accordance with the JORC
Code, using industry standard techniques and internal guidelines for the estimation and reporting of Ore Reserves
and Mineral Resources. These estimates and the supporting documentation are then reviewed by suitably qualified
Competent Persons from the Company.
All Ore Reserve estimates are prepared in conjunction with feasibility studies which consider all material factors.
The Mineral Resources and Ore Reserves Statements included in the Annual Report are reviewed by suitably
qualified Competent Persons from the Company prior to its inclusion.
Cross Referencing of the Resources Announcements
For more details regarding the Siviour resources please see the announcement of 21 July 2020
https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02256866-2A1237786?access_
token=83ff96335c2d45a094df02a206a39ff4
65
Renascor Resources Limited annual report 2021 financial statements
Personal notes
66
Corporate directory
Renascor Resources Limited
ABN 90 135 531 341
Directors
Richard Keevers, Non-ExecutiveChairman
David Christensen, ManagingDirector
Geoffrey McConachy, Non-ExecutiveDirector
Stephen Bizzell, Non-ExecutiveDirector
Company secretary
Pierre van der Merwe
Jon Colquhoun(appointed2July2021)
Registered office &
principal place of business
36 North Terrace
Kent Town SA 5067
Telephone : + 61 8 363 6989
Email: info@renascor.com.au
Website: www.renascor.com.au
Share register
Link Market Services Limited
ANZ Building
Level 15, 324 Queen Street
Brisbane QLD 4000
Phone: + 61 2 8280 7454
Fax: + 61 2 9287 0303
Auditor
BDO Audit (SA) Pty Ltd
Stock exchange listing
Renascor Resources Limited shares are listed on the
Australian Securities Exchange (ASX code: RNU)
ASX code: RNU
Australian Stock Exchange
ASX code: RNU
Frankfurt Stock Exchange
(Börse Frankfurt)
FSE code: RU8
www.renascor.com.au
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Renascor Resources Limited annual report 2021 financial statements
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