Annual Report 2024
General information
The financial statements cover Renascor Resources Limited as a Group consisting of Renascor
Resources Limited and the entities it controlled at the end of, or during, the year. The financial
statements are presented in Australian dollars, which is Renascor Resources Limited’s
functional and presentation currency.
Renascor Resources Limited is a listed public company limited by shares, incorporated and
domiciled in Australia. Its registered office and principal place of business is:
Level 5, 149 Flinders Street
Adelaide SA 5000
Phone: + 61 8 8363 6989
Email: info@renascor.com.au
Website: www.renascor.com.au
A description of the nature of the Group’s operations and its principal activities are included in
the directors’ report, which is not part of the financial statements.
The financial statements were authorised for issue, in accordance with a resolution of directors,
on 30 September 2024. The directors have the power to amend and reissue the financial
statements.
Renascor Resources Limited
ABN 90 135 531 341
04
Chairman’s letter
07
Project overview
08
Sustainability
16
Ore Reserves and Mineral Resource Estimate
17
Tenement schedule
19
Directors’ report
30 Remuneration report (audited)
44
Auditor’s independent declaration
45
Financial report
46 Statement of profit or loss and other comprehensive income
47 Statement of financial position
48 Statement of changes in equity
49 Statement of cash flows
50 Notes to the financial statements
87 Consolidated entity disclosure statement
88 Directors’ declaration
89
Independent auditor’s report
92
Shareholder’s information
95
Corporate directory
Contents
A N N U A L R E P O R T 2 0 2 4
3
Dear Shareholders,
On behalf of the Board, I am
pleased to present Renascor’s
Annual Report for the year ended
30 June 2024.
The past year has presented both
opportunities and challenges
for Renascor, as we have
continued to make significant
progress toward our goal of
becoming a major producer of
graphite through our flagship
Battery Anode Material (BAM)
project in South Australia.
Opportunities
In August 2023, we announced the results of our BAM
study, which confirmed the potential for Renascor to
become a low-cost, high-margin supplier of graphite
for the growing lithium-ion battery anode sector. The
BAM study demonstrated that, by integrating the world
class Siviour Graphite Deposit with an Australian-based
downstream manufacturing facility, Renascor has a
clear path to creating a competitive advantage as a
low-cost producer of Purified Spherical Graphite (PSG).
Following the completion of the BAM study, we have
continued to progress the development of the BAM
project. We have accelerated the development of
the mining and processing (upstream) operation to
minimise the planned construction phase and to
permit Renascor’s new supply to enter the market in
alignment with forecasted near-term shortages
of graphite.
Key achievements have included:
w
Early Contractor Involvement. We commenced a
competitive Early Contractor Involvement (ECI)
process to mature the engineering design of the
upstream minerals processing plant and non-
processing infrastructure. The ECI process will
culminate with an executable EPC contract for the
upstream operation, positioning Renascor to move
forward towards a final investment decision.
w
Acceleration of long-lead items. In addition to
advancing into more detailed engineering and
design, we have also invested in the land and key
infrastructure required for the upstream operation.
This included the acquisition of the freehold land
underlying ML 6495, the site of the Siviour Graphite
Deposit, as well as entering into an agreement to
upgrade SA Power Network’s existing electrical
infrastructure to permit direct grid power access to
the mine site.
w
Native Title. We entered into an Indigenous
Land Use Agreement (ILUA) with the Barngarla
Determination Aboriginal Corporation RNTBC,
the registered Native Title Body Corporate of the
Barngarla People (BDAC), the Traditional Owners
of land in the area encompassing our proposed
upstream mining and processing operation. The
ILUA builds on our work with the Barngarla People
since the discovery of the Siviour deposit and
provides a collaborative framework for ensuring
continuing respect for Aboriginal Heritage and
opportunities for the Barngarla People.
w
Finance. We have continued to work with
Export Finance Australia (EFA) in respect of our
conditionally approved A$185 million loan facility
from the Australian Government’s $4 billion Critical
Minerals Facility. During the year, EFA progressed
due diligence, confirming that no fatal flaws
has been identified and affirming that the loan
funds can be utilised to fast track construction
of the upstream graphite mining and processing
operation.
w
Life Cycle Assessment. We completed a life cycle
assessment of the BAM project that confirmed the
project’s potential to deliver not only a secure and
low-cost source of PSG but, importantly, to supply
this critical product with a significantly lower
environmental footprint than existing sources.
Directors Kathryn Presser and David
Christensen at Siviour Graphite Deposit
A N N U A L R E P O R T 2 0 2 4
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Chairman’s letter
A N N U A L R E P O R T 2 0 2 4
5
R E N A S C O R R E S O U R C E S L I M I T E D
Managing Director David Christensen (facing second from the left) at Critical Minerals Roundtable with
Minister for Resources Hon Minister Madeline King MP.
Challenges
The advances on our BAM project occurred as the
graphite market experienced a difficult pricing
environment. The prices of -195 graphite concentrates
(a typical feedstock used in the production of anode
material) fell to US$485 per tonne at the end of June
2024 (down from US$813 per tonne in January 2023).
Similar price declines have been experienced across
almost all battery critical minerals.
Whilst the recent downward price pressure has
created challenges for both existing graphite
producers and potential new developers worldwide,
Renascor does not believe current market weakness
will last, for several key reasons:
w Undersupply. We are forecasting an increasing
supply / demand gap that is being driven by
increased production of electric vehicles and
stationary storage systems that will require
increasing amounts of graphite for lithium-ion
battery anodes. According to the International
Energy Agency, the global demand for graphite is
projected to at least double by 2030, rising from
4.6Mt in 2023 to 9.6Mt in 2030 under their Stated
Policies Scenario or 13Mt (2030) under their Net
Zero Scenario. This rapid increase in demand for
graphite, coupled with a lack of upstream mine
development in recent years, creates the risk of
the market for graphite going into a supply deficit
if new projects like Renascor’s are not brought on-
line in the near term.
w China-specific factors. The current weak graphite
price is being impacted significantly by recent
increases in the production of low-cost synthetic
anode material in China. Renascor does not
consider the current situation to be sustainable.
The current decrease in synthetic anode pricing
has occurred during a period of low coke feedstock
costs and low utilisation rates, following significant
capital investment in new synthetic capacity in the
Chinese graphite sector. This has led to aggressive
pricing competition amongst Chinese synthetic
producers. Renascor expects that, as utilisation rates
increase and Chinese battery demand continues to
grow, synthetic anode pricing will increase, supporting
higher prices for natural graphite concentrates.
Moreover, Renascor considers that the factors that
are impacting low-priced synthetic anode production
to be China-specific, and as battery supply chains
mature outside of China, natural graphite anodes will
benefit from lower production costs and superior
environmental credentials.
w Ex-China governmental polices. Government policy
initiatives, such as the US Inflation Reduction
Act (IRA) and the European Critical Raw Materials
Act (CRMA), are incentivising the growth of non-
Chinese graphite supply chains to meet new
demand from the lithium-ion battery sector.
Noteworthy policy initiatives include:
- In the United States, the tariff rate on lithium-
ion EV batteries increased from 7.5% to 25% in
2024, while the tariff rate on natural graphite
will be increased from zero to 25% in 2026.
- Commencing in 2027, the United States IRA
requires that all graphite and other critical
minerals used in the manufacture of electric
vehicles in the US must be from sources outside
of China to qualify for the full electric vehicle
tax credit.
- The CRMA entered into force on 23 May 2024.
The CRMA aims to ensure a diverse, secure,
and sustainable supply of critical raw materials
for the EU’s industry.
As we continue to advance our BAM project, we expect
that the battery sector will continue the long-term
trend toward increased use of lithium-ion batteries,
and this will result in improved pricing for graphite and
unlock new supply sources to meet growing demand.
Whist we expect to see some volatility as ex-China
graphite supply chains grow, we remain confident that
the overall trend is positive for graphite processed and
manufactured for use in lithium-ion batteries.
With the strong progress achieved during the year
in advancing the BAM project, we believe Renascor
is favourably positioned to benefit from increased
demand for our world class, Tier 1 Siviour graphite
deposit. Our Siviour deposit is well located in
coastal South Australia, with potential for long term
supply of graphite concentrates and PSG into current
markets and the growing geopolitically influenced
markets outside of China.
The strength of Renascor’s position is thanks to the
hard work, commitment and dedication of our growing
and highly motivated team, led by Managing Director
David Christensen.
I would like to thank everyone who has contributed
to this pivotal year for the company – my fellow
Directors, our senior management team, all of our
staff, consultants and advisers and, most importantly,
our shareholders.
I am delighted to welcome Kathryn Presser, AM, who
joined our board in June 2024. Kathryn adds to the
depth of relevant strategic skills within our board,
based upon her senior operational and governance
experience.
The coming year has the potential to be a
transformational period for Renascor. Whilst we
are mindful of the need to be vigilant in managing
the risks inherent in the growing graphite market,
we are confident that the trend towards increasing
graphite demand is strong and will support our goal
of becoming a major supplier of high-value graphite
products for the lithium-ion battery sector.
Your sincerely,
Richard (Dick) Keevers
Chairman
Chairman’s letter continues
A N N U A L R E P O R T 2 0 2 4
6
‘… the recent downward price pressure has created
challenges for both existing graphite producers and
potential new developers worldwide, Renascor does not
believe current market weakness will last.’
A N N U A L R E P O R T 2 0 2 4
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R E N A S C O R R E S O U R C E S L I M I T E D
Renascor is committed to
powering the clean energy
transition through the
development of a vertically
integrated graphite
manufacturing operation to
produce 100% Australian-made,
sustainable and ethically-sourced
battery anode material for the
lithium-ion battery market.
Renascor’s proposed BAM project will combine:
w The Siviour Graphite Deposit in South Australia,
where Renascor intends to build a conventional
mining and mineral processing operation to produce
graphite concentrates, and
w A state-of-the-art processing facility in South
Australia to manufacture PSG through Renascor’s
eco-friendly purification process.
The Siviour Graphite Deposit is unique in both its
near-surface, flat-lying orientation and its scale as one
of the world’s largest graphite Reserves. Siviour is the
largest reported graphite Reserve outside of Africa and
the second largest reported Proven Reserve globally.
Renascor intends to leverage this inherent advantage
to manufacture high value PSG from a low-cost
graphite concentrate feedstock to provide a secure
cost-competitive supply of battery anode raw material
to the rapidly growing lithium-ion battery market.
The planned graphite concentrate operation is in
the advanced stages of development, with Renascor
having obtained it primary mining approvals and
completed a Definitive Feasibility Study with its BAM
Study in August 2023.
Following the completion of the BAM study, Renascor
has continued to progress the development of the
BAM project. In particular, we have accelerated the
development of the upstream mining and processing
operation to minimise the planned construction
phase and to permit Renascor’s new supply to enter
the market in alignment with forecasted near-term
shortages of graphite.
Renascor’s Battery Anode Material Project location.
Project overview
Port Adelaide
Port Lincoln
Port Augusta
Kimba
0
50
100 km
Major roads
Renascor tenements
Power (transmission line)
Railway
Townships
Port Adelaide
South Australia
BAM
project
Adelaide
Port
Pirie
Battery Anode
Material Plant
Yadnarie
Arno Bay
Mine and
Concentrator
Cleve
Cowell
Whyalla
Cummins
A N N U A L R E P O R T 2 0 2 4
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Renascor intends to produce
100% Australian-made PSG
for use in the manufacture of
lithium-ion battery anodes. This
will be a small but significant
contribution to global efforts to
reduce carbon emissions and
combat climate change.
Acknowledgement
Renascor acknowledges the Traditional Owners and
custodians of the land we work and live on. We pay
respect to Elders past, present and emerging. We
acknowledge the cultural connection Traditional
Owners have with country. We commit to working
with Traditional Owners to continue to learn and to
contribute to the empowerment of communities.
Sustainability
Siviour Graphite Deposit and location of proposed mine, Arno Bay, South Australia
100%
Australian-made
Background
South Australian legislation consists of a two-
part assessment and approval process for mining
operations, first requiring the granting of a Mineral
Lease, and, secondly, the approval of a Program for
Environment Protection and Rehabilitation (PEPR)
before mining and processing operations may
commence.
The South Australian Minister for Energy and Mining
granted a Mineral Lease for the proposed Siviour
graphite mine and mineral processing operation
in April 2019, and subsequently the PEPR was
approved in November 2022.
Under the terms of the PEPR, Renascor may process
up to 1.65 million tonnes of graphite ore per annum,
which would permit Renascor to produce up to
150,000 tonnes of graphite concentrate per year.
R E N A S C O R R E S O U R C E S L I M I T E D
Sustainability 2024
Environmental
w Ongoing environmental, ecology, hydrology and vegetation surveys for the proposed Siviour
graphite mine, mineral processing plant and associated infrastructure in preparation for the
commencement of mining and site construction activities.
w Completion of environmental assessments required for the proposed PSG facility, its associated
infrastructure and transport routes.
w Completion of a Life Cycle Analysis (LCA) demonstrating that the Siviour BAM project has a
carbon footprint an order of magnitude lower than our peers.
Social
w
Native Title Agreement executed with the Traditional Owners of the area encompassing the
Siviour graphite mine and mineral processing plant.
w
Acquisition of the freehold farming land underlying ML 6495, the site of the
Siviour Graphite Deposit.
w Completion of a Cultural Heritage Survey and endorsement of a Cultural Heritage Management
Plan by the Traditional Owners of the lands on which the proposed PSG facility is located.
w Continuing engagement with local councils and community on future employment opportunities
and industry participation plans.
Governance
w
Development of new, and updating of existing, ESG policies, including new Sustainability and
Human Rights Policies.
w
Endorsement of the ESG Materiality Assessment and Matrix.
w Independent review of ESG performance against global standards and principles, including
Equator Principles 4, International Finance Corporation Performance Standards and World Bank
Environmental, Health, and Safety Guidelines.
ESG FY2024 Highlights
Environmental, Social and Governance (ESG)
Renascor is committed to applying sustainability principles
in every aspect of our business. We will achieve this
through developing and implementing ESG management
systems that focus on continuous improvement.
During the recently completed financial year,
Renascor achieved several key ESG achievements as
summarised below.
A N N U A L R E P O R T 2 0 2 4
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A N N U A L R E P O R T 2 0 2 4
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Sustainability 2024
Environmental
Renascor is committed to compliance with Australian
and local laws, regulations, permits, and licenses
pertaining to the protection of the environment and
aspires to exceed those regulatory requirements.
Key environmental achievements during the
recently completed year include the completion
of environmental surveys and assessments for
the Siviour graphite mine and mineral processing
operation in Arno Bay, South Australia in preparation
for the commencement of mining and site
construction activities.
Renascor also completed environmental assessments
for its proposed state-of-the-art PSG facility in Bolivar,
South Australia. The Bolivar site is located nearby
to SA Water’s Bolivar water treatment and industrial
facilities, providing access to key infrastructure,
including power and water, and is located along the
transport corridor from the proposed Siviour mine to
the shipping port of Port Adelaide.
Climate change is critically linked to the sustainability
of its business, and Renascor is committed to
integrating appropriate climate change mitigation
and adaptation practices and ensuring climate
change impacts are integrated into risk management
systems across all activities.
During the recently completed year, independent
environmental consultants Minviro Limited (Minviro)
completed an LCA of the environmental footprint of
Renascor’s BAM project. The cradle-to-gate
assessment included mining, concentrating,
spheronization and purification. Minviro estimated
that the climate change impact of producing one
tonne of PSG from the project will be approximately
2.0 tonnes of CO2 equivalent emissions (CO2e). The
BAM project’s climate change impact compares
favourably with current production of PSG from
Heilongjiang, China, the world’s main source of PSG,
where Minviro estimates the impact of producing
one tonne of PSG is approximately 7.0 tonnes CO2e
with the impact by scope emissions shown below.
1.2
0
0.2
0.4
0.6
0.8
1.2
kg CO2 eq. per kg PSG
Scope 1
Scope 2
Scope 3
uPSG
Natural Graphite AAM
Synthetic Graphite AAM
CO2e / Tonne (scope 1, 2 & 3)
0
Renascor
China
5.0
10.0
15.0
20.0
25.0
0
A N N U A L R E P O R T 2 0 2 4
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R E N A S C O R R E S O U R C E S L I M I T E D
Sustainability 2024
Topic
Company Summary
Operational exposure to climate
change
Renascor has completed Climate Change Risk Assessments for all its
operations and transport routes.
Renascor is actively managing its physical and transitional risk as it
moves through the project development stages. Renascor consider that
its contribution to the energy storage industry contributes positively to
combatting climate change. Refer to risks disclosed in the Directors’ Report
within this Annual Report.
Operational exposure to the costs
of pollutants, land clearing or
biodiversity loss if introduced
Renascor has had no material operational exposure to costs related to
environmental matters in the past 12 months, as currently no sites are
operational.
Costs associated with biodiversity loss and land clearing have been
determined through the approval process in the form of the Significant
Environmental Benefit payment to the SA Government as the key mechanism
for biodiversity offsets.
Renascor has had negligible impact to the environment in the past 12 months
as currently no sites are operational.
For further detail on the material aspects of our operations refer to the
Materiality Matrix.
Assessment of the materiality of
operations on the environment
Renascor has completed an LCA that is inclusive of its expected performance
when in full operation of the BAM project. Refer to ASX Announcement “LCA
highlights low carbon footprint of Siviour” on 1 November 2023.
Renascor has also completed Climate Change Risk Assessments for all its
operations and transport routes. Refer to risks disclosed in the Directors’
Report within this Annual Report.
Activities on physical and financial
risks associated with climate
change
Not applicable for Renascor in its current phase of project development.
Significant environmental efficiency
improvements in the past year
Renascor’s business model supports the green transition in producing
a key component of the lithium-ion battery used in the electric vehicle
industry.
Products or services that enable the
green transition
Renascor’s Environmental Policy and a Sustainability Policy ensures
environmental management and sustainability matters are addressed
at all levels of the Company and during all stages of project
development, construction and operations.
Relevant policies are available on Renascor’s website.
Existing policy framework on
environmental management
practices
Renascor has had negligible impact in this area in the past 12 months as
currently no sites are operational.
Renascor has completed an LCA that is inclusive of its expected performance
when in full operation of the BAM project. Refer to ASX Announcement “LCA
highlights low carbon footprint of Siviour” on 1 November 2023.
Water management and wastewater
management practises that
Renascor has undertaken in the last
12 months
Key Environmental Disclosures
A N N U A L R E P O R T 2 0 2 4
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Sustainability 2024
Social
Renascor is committed to effective, ongoing and
transparent consultation with stakeholders directly
and indirectly impacted by the BAM project. As part
of this undertaking, Renascor is committed to being a
responsible and sustainable business by ensuring its
operations have a positive impact on the communities
and environment where we operate. Renascor
acknowledges and respects the Traditional Custodians
and Elders of the land on which it operates.
During the recently completed year, Renascor entered
into an ILUA with BDAC, the registered Native Title Body
Corporate of the Barngarla People, the Traditional
Owners of land in the area encompassing the Siviour
graphite mine and mineral processing plant at Arno
Bay. The ILUA provides a cooperative framework
between BDAC and Renascor to support and respect
Aboriginal heritage during the construction and
operation of the proposed mine and provides the
necessary Native Title consents to allow Renascor to
proceed with its planned construction and operation
of a desalination plant to support mining operations.
The ILUA also provides pathways for employment,
training and contracting of members of the Barngarla
people and for cultural awareness and communication.
Key Environmental Disclosures continued
Company Summary
Management of ecological
and biodiversity impacts of its
operations in the last 12 months
Renascor has had negligible impact in this area in the past 12 months as
currently no sites are operational.
Renascor has completed ecological and vegetation surveys and assessments
in the areas in which we intend to operate.
Management of waste processing
and/or hazardous materials
handling in the last 12 months
Renascor has had negligible impact in this area in the past 12 months as
currently no sites are operational.
Renascor has limited exposure in this area as currently no sites are
operational. Renascor considers supply chain environmental risks when
engaging with the market and assessing project plans, including in
completing an LCA that includes a cradle-to-gate assessment including all
inputs and transport related CO2 emissions.
Related policies are available on Renascor’s website.
Management of supply chain risks
from an environmental perspective,
policies and procurement
initiatives on sustainable sourcing
Topic
The execution of the ILUA follows over four years of
engagement between BDAC and Renascor during the
design and planning of the BAM project.
Renascor has also completed a Cultural Heritage
survey on the proposed site of the PSG facility with
the Kaurna Yerta Aboriginal Corporation (KYAC),
the Registered Native Title Body of the Kaurna
People, and the Traditional Owners of land in the
area encompassing the site of the proposed PSG
facility. Following the completion of the Cultural
Heritage survey, KYAC endorsed the Cultural Heritage
Management Plan for future construction and
operation activities.
In the recently completed financial year Renascor’s
wholly owned subsidiary Ausmin Development Pty Ltd
(Ausmin), acquired the entire freehold land underlying
ML 6495, the site of the Siviour Graphite Deposit.
Renascor has continued ongoing engagement with the
communities of Arno Bay and the surrounding areas,
where the mine and mineral processing plant will be
located, as well as the greater Bolivar area, where the
PSG facility will be located.
A N N U A L R E P O R T 2 0 2 4
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R E N A S C O R R E S O U R C E S L I M I T E D
Sustainability 2024
Company Summary
Incidents in the past year relating to
workplace and industrial relations
disputes, litigation, discrimination
and/or harassment claims
Renascor has had no incidents in any of these areas in the past year.
Occupational health and safety
incidents, injuries, deaths, non-
compliance breaches, fines and
litigation
Renascor has had no incidents in any of these areas in the past year.
Renascor has maintained an active relationship with the community and
stakeholders in the areas in which we propose to operate. Renascor has
entered into an agreement with BDAC, completed Cultural Heritage surveys
and Management Plans with KYAC, acquired the freehold land wholly
comprising the Mining Lease, all undertaken with free and prior informed
consent of the stakeholders
Community engagement and
social licence to operate, including
relationships with stakeholders in
the communities of areas planning
to operate in
Renascor has negligible exposure in this area as Renascor currently
has no sites operational and none that were in operation for the last 12
months. Given Renascor’s proposed operational sites are solely located
in South Australia, Renascor is unlikely to have exposure to high-risk
geographies, sectors or vulnerable communities.
Risk of organisational human rights
violations and modern slavery or in
the supply chain
Refer to the Company’s Human Rights Policy, which is available on
Renascor’s website.
Disclosure and provision of
information on the risk of
organisational human rights
violations and modem slavery or
across the supply chain (i.e. incidents,
policies, audit processes)
Refer to the Company’s Risk Management Policy and the Human
Rights Policy, which are available on Renascor’s website.
Monitoring and managing the risk
of social issues, modern slavery
and human rights violations
Renascor reviews employee remuneration on an annual basis. Staff turnover
averaged 1.5 full time equivalents during the last 12 months.
Refer to the Company’s Diversity Policy, which is available on Renascor’s
website.
Renascor has negligible exposure to industrial relations as it currently has
no sites operational and none that were in operation for the last 12 months.
Employee engagement, staff
turnover, remuneration and
productivity, industrial relations and
diversity performance in the last 12
months
Topic
Key Social Disclosures
A N N U A L R E P O R T 2 0 2 4
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Governance
Renascor has adopted the ASX Corporate
Governance Council’s “Corporate Governance
Principles and Recommendations - 4th Edition” (ASX
Recommendations). Renascor continually monitors and
reviews its existing and required policies, charters, and
procedures with a view to ensuring its compliance with
the ASX Recommendations to the extent appropriate
for Renascor. A summary of the Renascor’s ongoing
corporate governance practices is set out annually in
the Renascor’s Corporate Governance Statement and
can be found on Renascor’s website.
A Materiality Matrix presents key ESG topics that are
material to a Company’s business ranked in order of
importance to the Company and importance to the
Company’s stakeholders. The matrix provides a sense
of the priority ESG areas on which the Company
should focus.
During the recently completed year, Renascor
continued the process of developing its materiality
matrix. The materiality matrix is aligned with the
Global Reporting Initiative (GRI) process through the
ongoing identification and assessment of its actual
and potential impacts. Renascor’s Materiality Matrix
has been endorsed by Renascor’s ESG Committee
and Board.
Sustainability 2024
Expected Importance to Stakeholders
Biodiversity &
Land Management
Customer Rights
Pollution
Human Rights & Labour
Community Investment
& Engagement
Climate Change
& Energy
Waste & Tailings
Management
Ethics, Transparency
& Compliance
Water
Management
Occupational
Health & Safety
Governance, Structure
& Policies
Sustainable Products
& Services
Supply Chain Management
Expected impact on Renascor Business and Operations
Low
Major
Major
Materality Assessment Matrix
Renascor undertook a comprehensive independent
review of its ESG performance against global standards
and principles specific to the mining industry,
including Equator Principles 4, International Finance
Corporation Performance Standards and World
Bank Environmental, Health, and Safety Guidelines.
This review demonstrated compliance with global
standards, subject to ongoing expansion of its current
policies and systems as Renascor transitions through
development stages of the BAM project. As part of its
continuing development, Renascor is committed to the
full implementation of an Environmental and Social
Assessment and Management System meeting globally
recognised standards.
A N N U A L R E P O R T 2 0 2 4
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R E N A S C O R R E S O U R C E S L I M I T E D
Company Summary
Topic
Key Governance Disclosures
Composition and effectiveness of the
Board, taking into account relevant
industry experience, varied skill
sets, independence, age, diversity,
tenure, and time capacity in the last
12 months
Refer to the Corporate Governance Statement - 2024.
Refer to Company Overview within the Directors’ Report section of
this Annual Report.
Corporate structure of the
business and company purpose in
the last 12 months
Board and Executive Team’s overall
stewardship of the business, including
leadership quality, long term
decision-making, capital allocation
and management, track-record
and the protection of shareholder
interests in the last 12 months
Refer to disclosures within the Director’s Report section of this Annual
Report.
Remuneration incentives framework
(both short-term and long-term)
aligned with the corporate strategy
and shareholder interests
Refer to disclosures within the Remuneration Report section of this
Annual Report.
Shareholder communication
Shareholder communication is undertaken in accordance with ASX listing
rules and continuous disclosure requirements.
The Company has developed a Shareholder Communications Policy and
Continuous Disclosure Policy, which are available on Renascor’s website.
Quality of earnings and overall
prudence and reliability of
accounting judgements in the
last 12 months
Due to the developmental nature of the current activities, Renascor does
not have material earnings from operations.
Accounting judgements are disclosed within the relevant sections of
the financial statements refer to notes 2, 11, 12, 15, 30 to the financial
statements within this Annual Report.
Internal risk and control
frameworks in the last 12 months
Refer to the Company’s Risk Management Policy, which is available on
Renascor’s website.
Management of its legal and
regulatory environment
There have been no legal proceedings, controversies or conduct issues
by the Company in the last 12-month period, including but not limited to
financial fraud, product safety concerns conduct, business ethics bribery,
corruption, political donations, accounting or taxation fraud.
Cyber security incidents
Renascor is not aware of any material cyber security incidents or breaches
during the last 12-month period. This includes data breaches, ransomware,
hacks and other security incidents or litigation.
Management of systemic risks
including exposure or association
with any controversial entities,
industries, countries or products
Refer to the Company’s Risk Management Policy, which is available on
Renascor’s website.
Renascor considers controversial entities to include fossil fuel industry
associations, military, coal and forestry, and controversial countries.
Sustainability 2024
A N N U A L R E P O R T 2 0 2 4
16
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 Mineral Resources
announcements
For more details regarding the Group’s Ore Reserves as
at 30 June 2024 refer to the announcement “Updated
Mineral Ore Reserve Estimate for Siviour” released on
24 August 2023.
For more details regarding the Group’s Mineral
Resources as at 30 June 2024 refer to “ASX
announcement, Siviour Mineral Resource Increases by
25% released, on 14 September 2023.”
Ore Reserves and
Mineral Resources statement
Competent persons statements
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.
The information in this report which relates to Mineral Resources is based upon information compiled by Mrs Christine
Standing who is a Member of the Australian Institute of Geoscientists and a Member of the Australasian Institute of Mining
and Metallurgy. Mrs Standing is an employee of Snowden Optiro (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.
The information in this document that relates to Ore Reserves is based on information compiled 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
& 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.
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 2024.
30 June 2024
30 June 2023
Classification
Tonnes (Mt)
Grade (%TGC)
Graphite (Mt)
Tonnes (Mt)
Grade (%TGC)
Graphite (Mt)
Measured
16.9
8.6%
1.4
16.8
8.6%
1.4
Indicated
56.2
6.7%
3.8
46.0
7.1%
3.3
Inferred
50.5
6.5%
3.3
30.7
7.0%
2.2
Total
123.6
6.9%
8.5
93.5
7.3%
6.9
Table 2: Siviour Mineral Reserves Summary
* Cut-off grade of 2.3% TGC
Table 1: Siviour Ore Reserves Summary
30 June 2024
30 June 2023
Classification
Tonnes (Mt)
Grade (%TGC)
Graphite (Mt)
Tonnes (Mt)
Grade (%TGC)
Graphite (Mt)
Proven
16.8
8.2%
1.4
15.8
8.4%
1.3
Probable
45.0
6.6%
3.0
35.8
6.9%
2.5
Total
61.8
7.0%
4.3
51.5
7.4%
3.8
R E N A S C O R R E S O U R C E S L I M I T E D
Tenement schedule
Interests in Tenements as at 30 June 2024
Project name
Tenement number
District
Interest owned %
Siviour Project
ML 6495
South Australia
100.00
Dutton Bay
EL 6032
South Australia
100.00
Malbrom
EL 6197
South Australia
100.00
Lipson Cove
EL 6423
South Australia
100.00
Verran
EL 6469
South Australia
100.00
Malbrom West
EL 6668
South Australia
100.00
Cleve
EL 6879
South Australia
100.00
Hincks
EL 6911
South Australia
100.00
Outalpa
EL 6450
South Australia
100.00
Cutana
EL 6451
South Australia
100.00
Old Wartaka
EL 6191
South Australia
100.00
Witchelina
EL 6403
South Australia
100.00
Flat Hill
EL 6549
South Australia
100.00
Malbooma Railway
EL 6585
South Australia
100.00
Carnding
EL 6687
South Australia
100.00
Iron Baron
EL 6698
South Australia
100.00
A N N U A L R E P O R T 2 0 2 4
17
Directors’ report
A N N U A L R E P O R T 2 0 2 4
20
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 2024.
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, South Australian-based company focused
on the development of economically viable mineral
deposits, with the company’s primary focus its
BAM project in South Australia.
BAM project
Renascor’s activities during the past financial year
were primarily directed towards developing the
BAM project, with material developments
summarised below.
On 7 July 2023, Renascor announced the results of a
drill program seeking to confirm the continuity to, and
to test for possible extensions of, mineralisation to
the north of the Siviour Mineral Resource. Renascor
completed 26 diamond drill holes for 2,963 metres
the drill assays, with the drill results confirming the
continuity of widespread, high-grade graphite over an
area extending over 3 km from the existing pit design.
On 19, July 2023, Renascor announced a non-binding
Strategic Cooperation Memorandum of Understanding
(MOU) with Japanese anode material manufacturer
Mitsubishi Chemical Corporation (Mitsubishi
Chemical). Mitsubishi Chemical is Japan’s largest
chemical corporation and one of the world’s largest
producers of lithium-ion battery anode materials. The
MOU provides for the potential purchase by Mitsubishi
Chemical of graphite concentrates, PSG and other
graphite products from the BAM project.
On 8 August 2023, Renascor announced the results of
its BAM study, confirming compelling economics of
its 100%-owned vertically integrated graphite mining
operation and downstream PSG operation. Results
included:
w Post-tax unleveraged NPV10 of A$1.5 billion,
w Post-tax unleveraged IRR of 26%,
w Average annual EBITDA of A$363 million,
w PSG gross operating cost of US$1,782 per tonne over
the first 10 years and US$1,846 per tonne over 40-
year mine life (LOM), and
w Graphite concentrate operating cost of US$405 per
tonne over first 10 years and US$472 per tonne
over LOM.
On 10 August 2023, Renascor announced that it had
entered into a licencing agreement with leading
German battery mineral consultancy group Dorfner
ANZAPLAN GmbH. The licencing agreement will
permit Renascor to utilise an eco-friendly purification
process for its planned PSG manufacturing facility.
Rather than using hydrofluoric acid (HF) to achieve
battery grade (the method commonly adopted in
Chinese PSG plants), Renascor has adopted a process
that uses less environmentally harmful reagents to
purify Siviour graphite.
Directors’ Report 2024
A N N U A L R E P O R T 2 0 2 4
21
R E N A S C O R R E S O U R C E S L I M I T E D
On 24 August 2023, Renascor announced an updated
Ore Reserve, confirming the Siviour Graphite Deposit
(Siviour) as the largest reported total Ore Reserve
of graphite outside of Africa and the second largest
reported Proven Reserve of graphite in the world, with
a 13% increase in Proven Reserves to 16.8Mt at 8.2%
total graphitic carbon (TGC) for 1.4Mt of contained
graphite and an 8% increase in Total Reserves to
61.8Mt at 7.0% TGC for 4.3Mt of contained graphite.
The revised Ore Reserve Table is summarised below:
On 14 September 2023, Renascor announced an
upgrade to the Mineral Resource estimate for Siviour,
confirming a 25% increase to the total (Measured,
Indicated and Inferred) Siviour Mineral Resource
estimate to 123.6Mt at 6.9% TGC for 8.5Mt of contained
graphite, with 61% classified as Measured or
Indicated. The updated Mineral Resource estimate is
summarised below:
On 10 October 2023, Renascor provided an update on
activities designed to accelerate the construction of
the upstream operation for the BAM project, including
finalisation of the design for the process flow sheet
for the mineral processing plant and advanced
engineering programs for the water desalination
facility and other non-process infrastructure.
On 1 November 2023, Renascor announced the
completion of an LCA of the BAM project undertaken
by independent environmental consultants Minviro.
The LCA estimated that the climate change impact
of producing one tonne of PSG will be ~2.0 tonnes of
CO2e (compared to an estimated 7.0 tonnes CO2e from
current production in Heilongjiang, China, the world’s
main source of PSG).
On 28 November 2023, Renascor announced that it
entered into an agreement to acquire the freehold
land rights to the property that hosts the Siviour
Graphite Deposit. Renascor settled the purchase and
acquired the freehold rights in January 2024.
On 17 January 2024, Renascor announced a revised
product mix for the Siviour mine and processing plant,
increasing the production of size fractions greater
than 150 microns (+100 mesh) by approximately 60%
from a projected 17% to 27% of total production.
On 29 February 2024, Renascor announced that it
entered into an agreement to upgrade SA Power
Network’s existing substation located approximately
25km from the proposed upstream operation, with
the construction of a new 33kV voltage regulator and
transformer, as well as to upgrade portions of the
existing overhead powerline network.
On 17 April 2024, Renascor announced that Export
Finance Australia has confirmed that the previously
announced and conditionally approved A$185 million
loan facility from the Australian Government’s $4
billion Critical Minerals Facility has been approved to
be utilised to fast track the construction of Renascor’s
proposed upstream graphite mining and processing
operation.
On 19 April 2024, Renascor announced that it entered
into an ILUA with the BDAC, the registered Native
Title Body Corporate of the Barngarla People, the
Traditional Owners of land in the area encompassing
Renascor’s proposed upstream mining and
processing operation.
On 24 June 2024, Renascor announced that it has
commenced a competitive ECI process with leading
engineering, procurement and construction firms
GR Engineering Services Limited and Primero Group
Limited. The ECI process provides a collaborative
framework for the ECI contractors to bid for the
execution of the Project Works under a competitive
environment, culminating in an executable EPC
contract, comprising a fully priced offer, agreed
commercial terms, finalised Project Works scope,
technical specifications and performance parameters.
Directors’ Report 2024
Reserve
Contained
Category
Ore (Mt)
TGC (%)
Graphite (Mt)
Proven
16.8
8.2%
1.4
Probable
45.0
6.6%
3.0
Total
61.8
7.0%
4.3
Reserve
Contained
Category
Ore (Mt)
TGC (%)
Graphite (Mt)
Measured
16.9
8.6%
1.4
Indicated
56.2
6.7%
3.8
Inferred
50.5
6.5%
3.3
Total
123.6
6.9%
8.5
Note: cut-off grade 2.3% TGC.
A N N U A L R E P O R T 2 0 2 4
22
Other projects
In addition to its activities related to the BAM project,
Renascor maintains a strong exploration portfolio,
identifying and maintaining a strong pipeline of
targets for development of gold, copper, cobalt, rare
earths, kaolin and other mineral assets.
Corporate and financial
For the year ended 30 June 2024 the profit for the
Group after providing for income tax amounted to
$1,707,664 (2023: $424,716).
On 20 June 2024, Renascor announced the
appointment of Ms Kathryn Presser AM as a
non-executive director.
Significant changes in the state of affairs
There were no significant changes in the state of
affairs of the Group during the financial year.
Matters subsequent to the end of the
financial year
On 11 July 2024, Renascor announced that it had
been awarded a $5 million grant for the BAM project
under the Australian Government’s International
Partnerships in Critical Minerals Program, which is
intended to support critical minerals projects that
contribute to building end-to-end supply chains
with Australia’s international partners in the critical
minerals sector. The grant was awarded to Renascor
to co-fund up to 49.9% of the capital cost of a
$10 million demonstration processing plant that will
produce battery-grade PSG for use in lithium-ion
battery anodes.
On 21 August 2024, Renascor announced the successful
completion of equipment trials for its planned PSG
manufacturing facility. The trials successfully produced
lithium-ion battery grade graphite across all targeted
product specifications, further validating Renascor’s
eco-friendly, hydrofluoric free purification process.
On 27 August 2024, Renascor announced the
registration of it’s ILUA with BDAC. As part of this
agreement, 393,868 shares to the fair value of $35,000
were issued to BDAC. These shares are subject to
voluntary escrow until 27 February 2025.
On 23 September 2024, Renascor announced that it
had completed the collection of a 730 tonne bulk
sample from the Siviour Graphite Deposit. The
large scale sample will be used to produce graphite
concentrate for the planned PSG demonstration
facility.
No other matter or circumstance has arisen since
30 June 2024 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.
Risk Management
The material risks for Renascor include:
Production, cost and capital estimates
The ability of Renascor to achieve production
targets or meet operating and capital expenditure
estimates on a timely basis cannot be assured. The
assets of Renascor, as with any others, are subject to
uncertainty and unexpected technical, geographical,
metallurgical, meteorological, geological, third-
party access, third party contractor, community,
operational environment, funding for development,
regulatory changes, or inclement weather issues,
accidents or other unforeseen circumstances such as
unplanned mechanical failure of plant or equipment
or pandemics.
Capital and operating cost estimates may be affected
by modifications to plant design, inflation, fluctuations
in foreign exchange rates, changes to estimates of
non-fixed components, delays in commissioning
and sourcing financing. Failure to achieve capital
estimates, cost targets or material increases in costs
could have an adverse impact on Renascor’s future
cash flows, profitability, results of operations and
financial condition.
The development of estimates is managed by the
Company using a combination of a budgeting and
tendering process. Actual results are compared with
budgets to identify drivers behind discrepancies which
may result in updates to future estimates. Renascor
has prepared a range of target cash costs for its
proposed operations at the BAM project. No assurance
can be given by Renascor that such targets will be
achieved.
Failure to respond to future waves of pandemics
(such as COVID-19) or other operational incidents
within Renascor may also result in increased
production costs.
Directors’ Report 2024
A N N U A L R E P O R T 2 0 2 4
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R E N A S C O R R E S O U R C E S L I M I T E D
Directors’ Report 2024
Unforeseen production cost increases could result in
Renascor not realising its operational or development
plans or such plans costing more than expected or
taking longer to realise than expected. Any of these
outcomes could have an adverse effect on Renascor’s
financial and operational performance.
Development stage
The BAM project is at the development stage. The
prospects of the Company should be considered in
light of the risks, expenses and difficulties frequently
encountered by companies in this stage.
The business of mineral exploration, project
development, project commissioning and production,
by its nature, contains elements of significant risk with
no guarantee of success. Ultimate and continuous
success of these activities is dependent on many
factors and there can be no assurance that the BAM
project will be constructed or brought into commercial
production.
As with all new mining projects, there is an inherent
risk that construction at the BAM project may not
be completed on schedule, or that the construction
cost may materially exceed budget, or that significant
problems in the commissioning or metallurgical
processes of the plant may arise.
Renascor may outsource substantial parts of the
construction and commissioning of the BAM project
to third party contractors. Such contractors may not
be available to perform services when required or
may only be willing to do so on terms that are not
acceptable to Renascor. Further, performance may be
constrained or hampered by the contractor’s capacity
constraints, mobilisation issues, plant, equipment
and staff shortages, labour disputes, managerial
failure and default or insolvency. Contractors may
not comply with provisions in respect of quality,
safety, environmental and land access compliance
and timeliness, which may be difficult to control.
In the event that a contractor underperforms or
is terminated, Renascor may not be able to find a
suitable replacement on satisfactory terms within
time or at all. These circumstances may have a
material adverse effect on development, construction,
commissioning and operation of the BAM project.
Future capital requirements
The future capital requirements of Renascor will
depend on many factors. Renascor may require further
financing in the future. Any additional equity financing
may be dilutive to Shareholders, may be undertaken
at lower prices than the then market price or may
involve restrictive covenants which limit Renascor’s
operations and business strategy. Debt financing, if
available, may involve restrictions on financing and
operating activities. Renascor notes that it remains
in discussion in respect of potential finance facilities
for the BAM project. As at the date of these financial
statements, no decision has been made in respect of
proceeding with any form of debt financing and
there is no guarantee that any such facility will be
entered into.
No assurances can be made that appropriate capital
or funding, if and when needed, will be available on
terms favourable to Renascor or at all. If Renascor is
unable to obtain additional financing as needed, it
may be required to reduce the scope of its activities,
and this could have a material adverse effect on
Renascor’s activities.
Renascor may undertake additional offerings of
securities in the future. The increase in the number
of Shares issued and outstanding and the possibility
of sales of such shares may have a depressive effect
on the price of Shares. In addition, as a result of such
additional Shares, the voting power of Renascor’s
existing Shareholders will be diluted.
Offtake agreements
Renascor is party to non-binding offtake agreements
as previously announced to ASX. There is no guarantee
that such non-binding agreements will convert to
binding agreements. As with all contracts, there
is a risk that the offtake parties may not perform
their respective obligations or may breach offtake
agreements. In addition, there is a risk that an
offtake party may become insolvent or may not be
able to meet its future buying or equity subscription
obligations under relevant offtake agreements.
A N N U A L R E P O R T 2 0 2 4
24
New projects and acquisitions
Renascor will actively pursue and assess other new
business opportunities in the resources sector. These
new business opportunities may take the form of
direct project acquisitions, joint ventures, farm-ins,
acquisition of tenements / permits, and/or direct
equity participation.
The acquisition of projects (whether completed
or not) may require the payment of monies (as a
deposit and/or exclusivity fee) after only limited due
diligence or prior to the completion of comprehensive
due diligence. There can be no guarantee that
any proposed acquisition will be completed or
be successful. If the proposed acquisition is not
completed, monies advanced may not be recoverable,
which may have a material adverse effect on Renascor.
If an acquisition is completed, the directors will need
to reassess at that time, the funding allocated to
current projects and new projects, which may result in
Renascor reallocating funds from the BAM project and/
or raising additional capital (if available). Furthermore,
notwithstanding that an acquisition may proceed
upon the completion of due diligence, the usual risks
associated with the new project/business activities
will remain.
Exploration and development risks
Mineral exploration and development are a high-
risk undertaking. There can be no assurance that
exploration of the Company’s properties or any other
exploration properties that may be acquired in the
future will result in the discovery of an economic
resource.
Exploration in terrains with existing mineralisation
endowments and known occurrences may slightly
mitigate this risk.
Even if an apparently viable resource is identified,
there is no guarantee that it can be economically
exploited due to various issues including lack
of ongoing funding, adverse government policy,
geological conditions, commodity prices or other
technical difficulties.
The future exploration activities of Renascor may be
affected by a range of factors including geological
conditions, limitations on activities due to seasonal
weather patterns, unanticipated operational and
technical difficulties, industrial and environmental
accidents, native title process, changing government
regulations and many other factors beyond the control
of Renascor.
The success of Renascor will also depend upon
Renascor having access to sufficient development
capital, being able to maintain title to its projects and
obtaining all required approvals for its activities. In
the event that exploration programs are unsuccessful
this could lead to a diminution in the value of its
projects, a reduction in the cash reserves of Renascor
and possible relinquishment of part or all of its
projects.
Operating risk
Mining operations generally involve a high degree
of inherent risk and uncertainty. Such operations
are subject to all the hazards and risks normally
encountered in the exploration, development and
production of graphite and other mineral products,
including unusual and unexpected geologic
formations, metallurgical recovery and other
processing problems, industrial accidents, open
pit wall failure, seismic activity, rock bursts, cave-
ins, flooding, fire, access restrictions, interruptions,
inclement or hazardous weather conditions and
other conditions involved in the drilling, blasting and
removal or processing of material, any of which could
result in damage to, or destruction of, mines and
other processing facilities, damage to life or property,
environmental damage and possible legal liability.
Graphite recovery
Mineral recoveries are dependent upon the process
that is required to liberate economic minerals and
produce a saleable product and by nature contain
elements of significant risk including changes in
mineralogy in the ore deposit or mechanical or
process issues which can result in inconsistent
minerals recovery, each of which could potentially
affecting the economic viability of the BAM project.
Directors’ Report 2024
A N N U A L R E P O R T 2 0 2 4
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R E N A S C O R R E S O U R C E S L I M I T E D
Directors’ Report 2024
Commodity and currency price volatility
Renascor’s revenues will in time be exposed to
fluctuations in the prices for the minerals it produces
including the price of graphite. Volatility in pricing
creates revenue uncertainty and requires careful
management of business performance and cashflows.
Lower prices can impact operations by requiring a
reassessment of the feasibility of mine plans and
certain projects and initiatives. Even if a project is
ultimately determined to be economically viable,
the need to conduct such a reassessment could
potentially cause substantial delays and/or may
interrupt operations, which may have a material
adverse effect on Renascor’s results of operations and
financial condition.
The factors which affect the price for graphite
and other minerals (many of which are outside
the control of Renascor and its directors) include,
among many other factors, manufacturing activities;
inflation; the quantity of global supply of graphite as
a result of the commissioning of new mines and the
decommissioning of others; political developments
in countries which produce and consume material
quantities of graphite; the weather in these same
countries; the price and availability of appropriate
substitutes; advancements in technologies and the
uses and potential uses of graphite, and the demand
for the applications for which graphite may be used;
the grade and quality of graphite produced; the use of
graphite in lithium-ion batteries and the speed with
which electric vehicles are adopted; and sentiment
or conditions in the countries and sectors in which
Renascor and its business/commercial partners sell or
intend to sell their products. Given the range of factors
which contribute to the price of graphite, and the fact
that pricing is subject to negotiation, it is particularly
difficult for Renascor to predict with any certainty
the prices at which Renascor will sell its product and
accordingly, investors are cautioned not to place
undue reliance on any price or demand forecasts
provided by Renascor or by external analysts.
Movements in currency exchange rates may affect
cash flows, profitability, costs and revenue. It is not
possible to accurately predict future movements in
exchange rates. As Renascor moves into production, it
will consider hedging strategies to mitigate this risk.
Competition risk
Renascor competes with other companies, including
major mineral exploration and production companies.
Some of these companies have greater financial and
other resources than Renascor and, as a result, may
be in a better position to compete for future business
opportunities. Many of Renascor’s competitors not
only explore for and produce minerals, but also
carry out refining operations and other products
on a worldwide basis. There can be no assurance
that Renascor can compete effectively with these
companies.
Land access risk
Land access is critical for exploration and/or
exploitation to succeed. It requires both access to
the mineral rights and access to the surface rights.
Minerals rights may be negotiated and acquired. In
all cases, the acquisition of prospective exploration
and mining licences is a competitive business, in
which proprietary knowledge or information is critical
and the ability to negotiate satisfactory commercial
arrangements with other parties is often essential.
Renascor may not be successful in acquiring or
obtaining the necessary licences to conduct future
exploration or evaluation activities.
Tenure and access risk
Renascor’s rights in the tenements may be obtained
by grant by regulatory authorities or be subject to
contracts with third parties.
Any third party may terminate or rescind the relevant
agreement whether lawfully or not and, accordingly,
Renascor may lose its rights to exclusive use of,
and access to any, or all, of the tenements. Third
parties may also default on their obligations under
the contracts which may lead to termination of the
contracts. Additionally, Renascor may not be able
to access the tenements due to natural disasters or
adverse weather conditions, hostilities or failure to
obtain the relevant approvals and consents.
A N N U A L R E P O R T 2 0 2 4
26
Third party risks
Under state and Commonwealth legislation (as
applicable), Renascor may be required to obtain
the consent of and/or pay compensation to the
holders of third-party interests which overlay areas
within the tenements, including pastoral leases,
petroleum tenure and other mining tenure in respect
of exploration or mining activities on the tenements.
Any delays in respect of conflicting third-party rights,
obtaining necessary consents, or compensation
obligations, may adversely impact Renascor’s ability
to carry out exploration or mining activities within the
affected areas.
Environmental risk
The operations and proposed activities of Renascor
are subject to Australian laws and regulations
concerning the environment. The costs of complying
with these laws and regulations may impact the
development of economically viable projects. As with
most exploration projects and mining operations,
Renascor’s activities are expected to have an
impact on the environment, particularly if advanced
exploration or field development or mining proceeds.
It is Renascor’s intention to conduct its activities to
the highest standard of environmental obligation,
including compliance with all environmental laws.
The cost and complexity of complying with the
applicable environmental laws and regulations
may prevent Renascor from being able to develop
potentially economically viable mineral deposits.
Although Renascor believes that it is in compliance in
all material respects with all applicable environmental
laws and regulations, there are certain risks inherent
to its activities, such as accidental spills, leakages or
other unforeseen circumstances, which could subject
Renascor to extensive liability.
Government authorities may, from time to time, review
the environmental bonds that are placed on permits.
The directors are not in a position to state whether
a review is imminent or whether the outcome of such
a review would be detrimental to the funding needs
of Renascor.
Further, Renascor may require approval from the
relevant authorities before it can undertake activities
that are likely to impact the environment. Failure to
obtain such approvals will prevent Renascor from
undertaking its desired activities. Renascor is unable
to predict the effect of additional environmental laws
and regulations, which may be adopted in the future,
including whether any such laws or regulations would
materially increase Renascor’s cost of doing business
or affect its operations in any area.
There can be no assurances that new environmental
laws, regulations or stricter enforcement policies,
once implemented, will not oblige Renascor to
incur significant expenses and undertake significant
investments in such respect which could have a
material adverse effect on Renascor’s business,
financial condition and results of operations.
Environmental regulation and performance
The directors have put in place strategies and
procedures to ensure that Renascor manages its
compliance with environmental regulations. The
directors are not aware of any breaches of any
applicable environmental regulations.
Climate change
Renascor 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. Renascor is committed to playing its part
in both the Australian and global communities and
strives to make a positive contribution to sustainable
development and the promotion of clean energy.
Key climate-related risks and opportunities relevant to
our business include:
w 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
Renascor’s transition to a lower carbon economy.
w Current and potential future investors are
increasingly focused on ESG aspects of projects
giving rise to possible financial and
reputational risk.
w Renascor believe this transition into a lower carbon
economy gives rise to opportunities for projects
like the Siviour Project to produce battery anode
material as it contributes to the move towards the
use of clean energy.
w The physical impacts of climate change including
changes to weather patterns have the potential to
impact upon operations.
Directors’ Report 2024
A N N U A L R E P O R T 2 0 2 4
27
R E N A S C O R R E S O U R C E S L I M I T E D
Directors’ Report 2024
David Christensen,
Managing Director
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. David’s
experience also includes serving as President of
Nuclear Fuels Corporation, a trading and marketing
company. David commenced his career as an attorney
in California and London offices of international law
firm Latham & Watkins, where he advised on corporate
finance and mergers and acquisitions. David was
educated at Cornell University (BA, Economics and
Classical Civilizations), the University of California,
Los Angeles (JD) and the Universitá di Bologna
(Fulbright Fellow).
Richard (Dick) Keevers,
Non-Executive Chairman
Experience and expertise:
Dick Keevers’ experience includes advancing multiple
producing mines from discovery phase through
development, including the Telfer gold and copper
mine, the Phosphate Hill phosphate mine and the
Baal Gammon copper mine. 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 resigned as a non-
executive director of Santana Minerals Limited during
the reporting period. Prior to joining the Renascor
board, Dick served as chairman of unlisted Eyre
Peninsula Minerals Proprietary Limited (EPM) when
EPM discovered the Siviour graphite deposit. In the
course of his career, Dick has conducted business
in more than 15 countries.
Information on Directors
Other current directorships:
None
Former directorships (last 3 years):
None
Interests in shares:
32,513,914
Other current directorships:
None
Former directorships (last 3 years):
Santana Minerals Limited
Interests in shares:
49,693,324
A N N U A L R E P O R T 2 0 2 4
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Directors’ Report 2024
Stephen Bizzell,
Non-Executive Director
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.
Geoffrey McConachy,
Non-Executive Director
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:
Savannah Goldfields Limited, Strike Energy Limited,
Maas Group Holdings Limited and Challenger
Energy Group Plc.
Former directorships (last 3 years):
Armour Energy Limited
Interests in shares:
49,122,383
Other current directorships:
None
Former directorships (last 3 years):
None
Interests in shares:
10,381,385
A N N U A L R E P O R T 2 0 2 4
29
R E N A S C O R R E S O U R C E S L I M I T E D
Directors’ Report 2024
Kathryn Presser,
Non-Executive Director
Experience and expertise:
Kathryn Presser has extensive executive management
and directorship experience, including substantial
roles in the resource, energy, finance and banking
industries. She served for twenty years as the CFO/
Company Secretary of ASX Top 200 listed Beach Energy
and currently is a Director of the Australian Energy
Market Operator (AEMO), National Reconstruction Fund
Corporation (NRFC) and the Police Credit Union and
Chair of the Risk and Performance Committee
for the South Australian Department of Energy and
Mining (DEM).
Kathryn is a Fellow of the Chartered Institute of
Company Secretaries, a Fellow of the Governance
Institute of Australia, a Fellow of the Certified
Practising Accounting Association, a Fellow of the
Institute of Company Directors and a member of
the International Women’s Forum. She was awarded
the Order of Australia (AM) in the 2022 Australia
Day Awards for her commitment to Accounting and
Community.
Other current directorships:
None
Former directorships (last 3 years):
Amaero Limited
Interests in shares:
None
‘Other current directorships’ quoted above are
current directorships for listed entities only and
excludes directorships of all other types of entities,
unless otherwise stated.
‘Former directorships (last 3 years)’ quoted above
are directorships held in the last 3 years for listed
entities only and excludes directorships of all other
types of entities, unless otherwise stated.
Pierre van der Merwe
Company secretary
Experience and expertise:
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:
w Bondi Mining Ltd (BOM) which changed its name to
World Titanium Resources Ltd
w Papyrus Australia Ltd (PPY)
w Terramin Australia Ltd (TZN) during its transition
from exploration to mining at its
Strathalbyn site
Jon Colquhoun
Company secretary
Experience and expertise:
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.
A N N U A L R E P O R T 2 0 2 4
30
Directors’ Report 2024
Meetings of Directors
The number of meetings of the Company’s Board of Directors (the Board) held during the year ended 30 June
2024, and the number of meetings attended by each director were:
Remuneration report (audited)
Held represents the number of meetings held during the time the director held office.
* Attendance at meeting by invitation.
** Kathryn Presser was appointed as Director on 20 June 2024 and the number of meetings held and attended
represent those held since her appointment.
Board
Audit and Risk
ESG
Remuneration
Nomination
Committee
Committee
Committee
Committee
Attended
Held
Attended
Held
Attended
Held
Attended
Held
Attended
Held
Richard Keevers
10
10
2
2
1
1
5
5
1
1
David Christensen
10
10
2*
2
1
1
4*
5
1
1
Geoffrey McConachy
10
10
2
2
1
1
5
5
1
1
Stephen Bizzell
10
10
2
2
1
1
5
5
1
1
Kathryn Presser **
2
2
-
-
-
-
1*
1
-
-
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:
w Principles used to determine the nature and
amount of remuneration
w Details of remuneration
w Service agreements
w Share-based compensation
w Additional information
w 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:
w competitiveness and reasonableness
w acceptability to shareholders
w performance linkage / alignment of executive
compensation
w transparency
The Remuneration Committee is responsible for
reviewing remuneration arrangements for the
Company’s directors and executives, and making
recommendations to the Board accordingly. 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 Remuneration Committee is responsible for
making recommendations in respect of:
w non-executive director fees;
w executive remuneration (directors and other
executives); and
w the over-arching executive remuneration framework
and incentive plan policies.
A N N U A L R E P O R T 2 0 2 4
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R E N A S C O R R E S O U R C E S L I M I T E D
Relationship between remuneration and Group
performance:
During the financial year, the Group has generated a
profit through significant interest income offset by its
principal activity in 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 the 30th of
November 2021, where the shareholders approved a
maximum annual aggregate remuneration of $750,000.
Retirement allowances for non-executive directors
In line with guidance from the ASX Corporate
Governance Council on non-executive director’s
remuneration, no retirement allowances are provided
for non-executive directors. Superannuation
contributions required under the Australian
superannuation guarantee legislation continue to be
made as required and are deducted from the directors’
overall fee entitlements.
Executive remuneration
The objective of the Group’s executive reward
framework is to ensure reward for performance
is competitive and appropriate for the results
delivered. The framework aligns executive reward with
achievement of strategic objectives and the creation
of value for shareholders and conforms to market
practice for delivery of reward. The Board ensures that
executive reward satisfies the following key criteria for
good reward governance practices:
w competitiveness and reasonableness;
w acceptability to shareholders;
w performance linkage/alignment of executive
compensation;
w transparency; and
w capital management.
Alignment to shareholders’ interests:
w focuses on sustained growth in shareholder wealth;
w focusing the executive on key non-financial drivers
of value; and
w attracts and retains high calibre executives.
Alignment to program participants’ interests:
w rewards capability and experience;
w reflects competitive reward for contribution to
growth in shareholder wealth;
w provides a clear structure for earning rewards; and
w provides recognition for contribution.
The framework provides a mix of fixed remuneration,
short-term incentives and long-term incentives.
The Remuneration Committee 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 and makes recommendations to
the Board accordingly. On recommendation from the
Committee, 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.
Directors’ Report 2024
A N N U A L R E P O R T 2 0 2 4
32
On recommendation from the Remuneration
Committee, the Board ensures that executive reward
satisfies key criteria for good reward governance
practices and is made up of the following reward
components:
w base pay and benefits, including superannuation,
set relative to market conditions;
w short-term performance incentives through
a cash bonus determined by the Board upon
recommendation by the Remuneration Committee;
and
w 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 Remuneration Committee subject to approval
by the Board. Refer to the “additional information”
section below for details of the earnings and total
shareholders return for the last five years.
The Remuneration Committee is of the opinion that
the results can be attributed in part to the adoption of
performance-based compensation and are
satisfied that this improvement will continue to
increase shareholder wealth if maintained over the
coming years.
Changes to the Executive Reward Framework
The Board undertook a substantial review of the
Company’s reward framework during the FY24
reporting period, to ensure the Company is best
placed to attract and retain the talent required
to deliver the Company’s strategy and to align
management reward, Company performance and
the delivery of value to shareholders over time.
The review was undertaken by the Remuneration
Committee in conjunction with an independent,
external advisor. The review included a substantial
benchmarking review for both Executives and Non-
Executives. A substantive recommendation from
the review was to reconfigure Vesting Conditions
related to executive long term incentives (LTI) to
better align with shareholder value by directly linking
Vesting Conditions to shareholder return measures,
as further detailed in this Report under share based
compensation. The Board continues to engage with
the independent, external advisor to ensure its reward
framework and remuneration arrangements are
consistent with best market practice.
Directors’ Report 2024
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33
R E N A S C O R R E S O U R C E S L I M I T E D
Directors’ Report 2024
Change to Managing Director/CEO
employment agreement from prior reporting
period
During the reporting period, Mr Christensen’s fixed
base remuneration was increased from $464,226 per
annum, exclusive of superannuation, plus private
health insurance to $535,000 per annum, inclusive
of superannuation, private health insurance and the
associated fringe benefit tax. From 1 July 2024 Mr
Christensen’s fixed base remuneration was increased
to $554,260 per annum, inclusive of superannuation,
private health insurance and the associated fringe
benefit tax.
During the financial year ended 30 June 2023,
Mr Christensen was granted performance rights as
part of the long term incentive remuneration (FY23
LTI Rights). The FY23 LTI Rights provided for the
grant of 1,500,000 performance rights that could be
converted into a maximum face value of $250,000 in
Company shares per year over a six-year period from
2023 to 2028, with the vesting of the performance
rights occurring upon the achievement of agreed upon
milestones. As part of the review of remuneration
conducted by the Board during the year,
Mr Christensen agreed to the Board’s proposal to
forfeit 750,000 performance rights under the FY23 LTI
Rights entitling Mr Christensen to a maximum face
value of $750,000 over the period 2026 to 2028 and
to replace these performance rights with new rights
under a revised long term incentive plan based on the
Company’s share price performance over a three year
period to 30 June 2026. These new rights
(FY24 LTI Rights) consist of 2,141,692 performance
rights, with the fair value of the replacement
performance rights for 2024 assessed to be $233,444
in accordance with a Monte Carlo Pricing Model. The
total fair value of the forfeited FY23 LTI Rights and the
awarded FY24 LTI Rights under Monte Carlo Pricing
Modelling is as follows:
In accordance with the accounting standards the
replacement rights have been valued at the greater of
the fair value of the FY23 LTI Rights forgone and the
new FY24 LTI Rights (replacement performance rights).
The expense recognised in the details of remuneration
table and the financial statements represents the
portion of fair value attributable to entitling
Mr Christensen’s service provided during the period.
Refer to the “Share based compensation” section for
further details on the relevant vesting and conversion
factor to ordinary shares for each tranche.
Voting and comments made at the
Company’s 21 November 2023 Annual
General Meeting (AGM)
At the 21 November 2023 AGM, 90.95% of the votes
received supported the adoption of the remuneration
report for the year ended 30 June 2023. The Company
did not receive any specific feedback at the AGM
regarding its remuneration practices.
w FY23 LTI Rights
Fair Value of 1,500,000 FY23 LTI Rights
$1,342,893
(Granted not issued)
Fair Value of 750,000 FY23 LTI Rights
$702,473
(Issued 19 October 2023)
Fair Value of rights forfeited
$640,420
w FY24 LTI Rights
$233,444
A N N U A L R E P O R T 2 0 2 4
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Directors’ Report 2024
Details of remuneration
Amounts of remuneration
Details of the remuneration of key management personnel of the Group are set out in the following tables.
*
Non-executive director from 20 June 2024.
** Short term benefits paid to Mr Christensen includes $28,528 in annual leave entitlements paid during the year and
accrued unpaid annual leave entitlements of $19,342 during the year. Mr Christensen also accrued $31,178 in unpaid long
service leave entitlements during the year.
*** The replacement performance rights granted during the financial year ended 30 June 2024 have been fair valued using a
Monte Carlo Pricing Model as at grant date and a portion of the cost has been recognised during the year proportionate to
the vesting period applicable to each tranche issued. These performance rights replace previously granted performance
rights that Mr Christensen has forfeited. Refer the commentary above in the “Change to Managing Director/CEO
employment agreement from prior reporting period” section as well as to the “Share based compensation” section for
further details.
Short-term benefits
Post-employment
Long-term
Share-based
benefits
benefits
payment
Cash
Cash
Non-
Superannuation
Long service
Performance
salary
bonus
monetary
leave
rights***
Total
2024
$
$
$
$
$
$
$
Non-Executive Directors:
Stephen Bizzell
98,000
-
-
-
-
-
98,000
Richard Keevers
125,641
-
-
13,821
-
-
139,462
Geoffrey McConachy
87,949
-
-
9,674
-
-
97,623
Kathryn Presser *
1,940
-
-
213
-
-
2,153
Executive Directors:
David Christensen **
483,918
187,250
33,486
27,407
31,178
418,544
1,181,783
797,448
187,250
33,486
51,115
31,178
418,544
1,519,021
A N N U A L R E P O R T 2 0 2 4
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R E N A S C O R R E S O U R C E S L I M I T E D
* Short term benefits paid to Mr Christensen includes $10,003 in annual leave entitlements paid during the year and accrued
unpaid annual leave entitlements of $33,963 during the year. Mr Christensen also accrued $37,668 in unpaid long service
leave entitlements during the year.
** Mr Christensen was granted 1,500,000 performance rights during the financial year ended 30 June 2023. These instruments
were fair valued using a Monte Carlo Pricing Model as at grant date and a portion of the cost has been recognised during the
year proportionate to the vesting period applicable to each tranche to be issued. During the financial year ended 30 June
2024, Mr Christensen agreed to the Board’s proposal to forfeit 750,000 out of the 1,500,000 performance rights previously
granted. Refer to commentary above in the “Change to Managing Director/CEO employment agreement from prior reporting
period” section as well as to the “Share based compensation” section for further details.
Short-term benefits
Post-employment
Long-term
Share-based
benefits
benefits
payment
Cash
Cash
Non-
Superannuation
Long service
Performance
salary
bonus
monetary
leave
rights**
Total
2023
$
$
$
$
$
$
$
Non-Executive Directors:
Stephen Bizzell
98,000
-
-
-
-
-
98,000
Richard Keevers
127,182
-
-
13,357
-
-
140,539
Geoffrey McConachy
93,342
-
-
4,658
-
-
98,000
Executive Directors:
David Christensen *
466,378
174,085
49,500
28,570
37,668
399,669
1,155,870
784,902
174,085
49,500
46,585
37,668
399,669
1,492,409
The proportion of remuneration linked to performance and the fixed proportion are as follows:
* During the year ended 30 June 2024 shareholders granted approval for the issue of performance rights to Mr David
Christensen to replace 750,000 of the performance rights approved and granted in the year ended 30 June 2023 but not
issued. Further information pertaining to the Performance Rights can be found in note 30 “Share Based Payments” and in
the “Share based compensation” section below.
** For the year ended 30 June 2024 the Board approved the payment of a $187,250 cash bonus to Mr David Christensen as
recognition of his performance during the year (2023: $174,085).
Fixed remuneration
At risk - STI
At risk - LTI
2024
2023
2024
2023
2024
2023
Non-Executive Directors:
Stephen Bizzell
100%
100%
-
-
-
-
Richard Keevers
100%
100%
-
-
-
-
Geoffrey McConachy
100%
100%
-
-
-
-
Kathryn Presser
100%
N/A
-
N/A
-
N/A
Executive Directors:
David Christensen * **
45%
50%
27%
15%
28%
35%
Directors’ Report 2024
A N N U A L R E P O R T 2 0 2 4
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Directors’ Report 2024
Cash bonus paid / payable
Cash bonus forfeited
2024
2023
2024
2023
Executive Directors:
David Christensen
59%
75%
41%
25%
The proportion of the cash bonus paid/payable or forfeited is as follows:
Service agreements
Remuneration and other terms of employment for
key management personnel are formalised in service
agreements. Details of these agreements are as
follows:
Key management personnel have no entitlement to
termination payments in the event of removal for
misconduct.
Share based compensation
Issue of shares
There were no ordinary shares issued to directors
and other key management personnel as part of
compensation during 30 June 2024 (2023: Nil).
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 2024 (2023: Nil).
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 $535,000 inclusive of
superannuation, private health insurance and the
associated fringe benefits tax.
A N N U A L R E P O R T 2 0 2 4
37
R E N A S C O R R E S O U R C E S L I M I T E D
Directors’ Report 2024
Performance rights
The terms and conditions of each tranche of performance rights granted over ordinary shares affecting
remuneration of directors and other key management personnel in this financial year or future reporting years
are as follows:
The conditions attached to the 1,500,000 performance rights granted to employees during the year ended 30
June 2023, of which 750,000 were issued on 19 October 2023, with the remaining 750,000 replaced, are set out in
the table below.
FY23 LTI conditions - remaining 750,000 performance rights issued
* Milestone Dates for all Tranches of performance rights issued in the current year is 3 years from the Date of Issue, with the
capacity to be extended to 4 years from Date of Issue at the discretion of the Board.
** Each Performance Right granted to the Managing Director is eligible to convert into ordinary shares in the Company
(subject to giving notice of intention to exercise within the Exercise Period, and subject to the Cap), calculated in
accordance with the below formula, upon vesting.
S = P / VWAP
Where:
‘S’ is the number of shares eligible to be issued on conversion of Performance Rights;
‘P’ is the number of Performance Rights in respect of a particular Tranche; and
‘VWAP’ is the volume weighted average price of Shares on ASX calculated for the quarter ended 30 September of the
financial year in which the relevant Performance Condition is met.
The total number of Vested Performance Rights in respect of which Mr Christensen may give notice of intention to exercise
in any given financial year until the expiry of the Exercise Period (and which may therefore convert into Ordinary Shares)
be capped at 250,000 per year (Cap), with any unutilised Cap from prior years able to be carried forward until the expiry of
the Exercise Period, being 6 years from the Date of Issue. The unutilised Cap from Year 1 has been carried forward to the
current period.
Under the conditions approved at the 2022 and 2023 AGM by shareholders, the 750,000 performance rights issued are
across the five tranches of performance conditions above. Once a performance condition is achieved the full allocation of
performance rights applicable to that performance condition vest until the 750,000 limit is reached.
Performance
Grant Date
Fair value per
Vesting criteria
Last vesting
Expiry upon
Rights Granted
right at grant date
date
vesting
150,000**
30 Nov 22
$0.970
Satisfactory completion of a Definitive
Vested
19 Oct 28
Feasibility Study (DFS) in relation to the
Siviour Project
375,000**
30 Nov 22
$0.946
Successful completion of foundation
19 Oct 26*
19 Oct 28
binding off-take agreement(s) for at least
60% of planned phase one production of
primary PSG
375,000**
30 Nov 22
$0.899
Completion of Final Investment Decision
19 Oct 26*
19 Oct 28
(FID) in relation to the start-up of the
first phase of the Siviour Project
450,000**
30 Nov 22
$0.850
Completion of the construction and
19 Oct 26*
19 Oct 28
commissioning of all plant in relation to
the start-up of the first phase of the
Siviour Project
150,000**
30 Nov 22
$0.820
First commercial shipment of product
19 Oct 26*
19 Oct 28
A N N U A L R E P O R T 2 0 2 4
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Directors’ Report 2024
Per the 2023 AGM resolution, the remaining 750,000 performance rights not issued were replaced with 2,141,692
new performance rights. The following table outlines conditions attached to these replacement performance
rights issued on 24 November 2023.
FY24 LTI conditions - Replacement performance rights
* The Relative TSR performance hurdle is determined in accordance with the table below:
** The absolute TSR performance hurdle is determined in accordance with the table below:
*** Fair value of the designated replacement performance rights is the fair value of the modified 750,000 performance rights
granted at the 2022 AGM and subsequently replaced in the current period plus any surplus of the fair value of the TSR
instruments issued. Fair value attributable to each tranche for the replaced 750,000 performance rights was split based on the
proportion of the total fair value of the TSR replacement instruments.
Performance rights are convertible 1:1 for ordinary shares subject to the achievement of relevant vesting conditions. This is in
contrast to the conversion factor applicable for the FY23 LTI rights.
TSR of Core relative to TSRs of constituents of the
Proportion of performance right that vest
nominated peer group shown below
is at or below the 50th percentile (the median) TSR of the
companies in the comparator group
Nil
exceeds the 50th percentile TSR of the comparator group,
up to the 75th percentile (upper quartile)
sliding scale between 50% and 100%
exceeds the 75th percentile TSR of the comparator group
100%
This represents 40% of the total Performance rights issued.
TSR of Core relative to TSRs of constituents of the
Proportion of performance right that vest
nominated peer group shown below
less than 10% Compound Annual Growth Rate (CAGR) for
TSR over the performance period (i.e. based on a 30-day
VWAP to 30 June 2023, of $0.193, the 10% CAGR TSR threshold
will be $0.257)
Nil
10% to 20% CAGR for TSR over the performance period
(i.e. based on a 30-day VWAP to 30 June 2023, of $0.193, the
20% CAGR TSR hurdle will be $0.334)
sliding scale between 0% and 100%
greater than 20% CAGR for TSR over the performance period
100%
This represents 60% of the total Performance rights issued.
Performance
Grant Date
Fair value per right
Vesting criteria
Milestone
Expiry upon
Rights Granted
at grant date vesting
date
vesting
856,677
21 Nov 23
$0.357***
Relative Total Shareholder Return
30 Jun 26
24 Nov 27
(Relative TSR) Milestone*
1,285,015
21 Nov 23
$0.261***
Absolute Total Shareholder Return
30 Jun 26
24 Nov 27
(Absolute TSR) Milestone**
A N N U A L R E P O R T 2 0 2 4
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R E N A S C O R R E S O U R C E S L I M I T E D
Directors’ Report 2024
The face value of the replacement performance rights granted to the Managing Director is $321,000, equal to 60%
of his Fixed Remuneration for FY24, based on market data relative to appropriate peer groups for the role. Note
that the face value is different to the fair value attributable to these performance rights under the accounting
standards.
The nominated peer group of companies are shown in the table below:
150,000 performance rights over ordinary shares vested to directors and other key management personnel
as part of compensation during the year ended 30 June 2024 (2023: Nil) upon meeting vesting conditions for
performance rights granted during the year ended 30 June 2023. These were exercised during the current
financial year.
Additional information
Refer to the sections below for details of the earnings and total shareholders return for the last five years:
The earnings of the Group for the five years to 30 June 2024 are summarised below:
The factors that are considered to affect total shareholders return (TSR) are summarised below:
2024
2023
2022
2021
2020
Profit/(Loss) for the year attributable
to owners ($)
1,707,664
424,716
(1,496,642)
(877,230)
(1,072,575)
Increase/(decrease) in share price (%)
(52%)
23%
121%
680%
(52%)
2024
2023
2022
2021
2020
Share price at financial year end (cents)
8.80
18.5
15.0
6.8
1.0
Basic earnings per share (cents per share)
0.07
0.02
(0.1)
(0.1)
(0.1)
The TSR calculation formula will be as follows:
TSR = 30 trading day VWAP to 30 June 2026 + Dividends paid in performance period - 30 trading day VWAP to 30 June 2023
30 trading day VWAP to 30 June 2023
All Tech Batteries Ltd
Alliance Nickel Ltd
Arafura Rare Earths Ltd
Ardea Resources Ltd
Black Rock Mining Ltd
Blackstone Minerals Ltd
Centaurus Metals Ltd
Cobalt Blue Holdings Ltd
Element 25 Ltd
Euro Manganese Inc
Galileo Mining Ltd
Hastings Technology Metals Ltd
Jervois Global Ltd VHM Ltd
Jindalee Resources Ltd
Legend Mining Ltd
Lithium Energy Ltd
Lunnon Metals Ltd
Magnis Energy Technologies Ltd
Neometals Ltd
Novonix Ltd
Poseidon Nickel Ltd
Quantum Graphite Ltd
Queensland Pacific Metals Ltd
Sayona Mining Ltd
Sovereign Metals Ltd
Syrah Resources Ltd
Talga Group Ltd
VHM Ltd
Walkabout Resources Ltd
A N N U A L R E P O R T 2 0 2 4
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Directors’ Report 2024
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:
* 150,000 Performance right exercised which converted to 1,209,368 ordinary shares in accordance with the conversion
conditions attached to the rights granted in 2023, being the volume weighted average price of Shares on ASX calculated for the
quarter ended 30 September 2023.
** Director from 20 June 2024.
Option holding
There were no 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.
* Refer to information in the “Change to Managing Director/CEO employment agreement from prior reporting period” section
as well as to the “Share based compensation” section above for vesting conditions and conversion factors attached to each
tranche of rights, the net change is shown in the table above.
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:
Balance at the Performance rights
Additions
Other
Balance at the
start of the year
vested & exercised
end of the year
Ordinary shares
Stephen Bizzell
49,122,383
-
-
-
49,122,383
David Christensen *
31,304,546
1,209,368
-
-
32,513,914
Richard Keevers
49,693,324
-
-
-
49,693,324
Geoffrey McConachy
10,381,385
-
-
-
10,381,385
Kathryn Presser **
-
-
-
-
-
140,501,638
1,209,368
-
-
141,711,006
Balance at the
Granted
Vested
Expired/forfeited
Balance at
start of the year
& exercised
/other
end of the year
Performance Rights
David Christensen *
1,500,000
-
150,000
1,391,692
2,741,692
1,500,000
-
150,000
1,391,692
2,741,692
A N N U A L R E P O R T 2 0 2 4
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R E N A S C O R R E S O U R C E S L I M I T E D
Directors’ Report 2024
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 $50,399 (2023: $292,332) from Euro. An amount of $2,027 (2023:
$3,233) was owing to Euro at 30 June 2024.
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 $39,900 (2023: $68,756) from GW McConachy & Co Pty Ltd. An amount of $nil (2023: $9,900) was owing to
GW McConachy & Co Pty Ltd at 30 June 2024.
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 $nil (2023:
$26,858). An amount of $8,167 of director’s fees was owing to BCP at 30 June 2024 (2023: $16,333).
At 30 June 2024 a reimbursement to Mr Christensen of $2,278 was outstanding (2023: $12,775).
This concludes the remuneration report, which has been audited.
A N N U A L R E P O R T 2 0 2 4
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Directors’ Report 2024
Shares under option
At the date of this report, there were no options to acquire ordinary shares in the Company were on issue.
Shares under performance rights
Unissued ordinary shares of Renascor Resources Limited subject to vesting and exercise of performance rights
at the date of this report are as follows:
The performance rights on issue have been granted to employees of the Company as remuneration.
The performance conditions attached to these performance rights have been disclosed above for the rights
issues to directors and other key management personnel and in note 30 to the financial statements for other
performance rights on issue.
No person entitled to exercise the performance rights had or has any right by virtue of the performance right to
participate in any dividends or share issue of the Company or of any other body corporate.
Grant date
Vesting date*
Expiry date
Exercise
Number of
Vested and
price
rights
exercisable
30 November 2022
19 October 2026**
19 October 2028
$0.00
600,000***
-
11 January 2023
12 January 2025
12 January 2026
$0.00
33,359
-
11 January 2023
12 January 2026
12 January 2026
$0.00
33,359
-
28 February 2023
1 March 2025
1 March 2026
$0.00
38,846
-
28 February 2023
1 March 2026
1 March 2026
$0.00
38,846
-
1 May 2023
1 May 2025
1 May 2026
$0.00
45,300
-
1 May 2023
1 May 2026
1 May 2026
$0.00
45,301
-
21 November 2023
30 June 2026
23 November 2027
$0.00
2,141,692
-
24 November 2023
24 November 2026**
24 November 2028
$0.00
348,000
-
24 November 2023
30 June 2026
23 November 2027
$0.00
1,160,917
-
27 October 2023
28 October 2024
28 October 2026
$0.00
75,390
-
27 October 2023
28 October 2025
28 October 2026
$0.00
75,390
-
27 October 2023
28 October 2026
28 October 2026
$0.00
75,390
-
2 November 2023
3 November 2024
3 November 2026
$0.00
67,086
-
2 November 2023
3 November 2025
3 November 2026
$0.00
67,086
-
2 November 2023
3 November 2026
3 November 2026
$0.00
67,087
-
19 December 2023
23 November 2024
23 November 2026
$0.00
60,008
-
19 December 2023
23 November 2025
23 November 2026
$0.00
60,008
-
19 December 2023
23 November 2026
23 November 2026
$0.00
60,008
-
2 February 2024
24 November 2026**
24 November 2028
$0.00
87,000
-
* Being the end of the vesting period attached to each tranche of performance rights on issue.
** At the Board’s discretion this can be extended to 4 years from date of issue.
*** Number of performance rights remaining after replacement and portion exercised during the period. Replacement
performance rights have been detailed separately due to changes in vesting and expiry dates.
A N N U A L R E P O R T 2 0 2 4
43
R E N A S C O R R E S O U R C E S L I M I T E D
Directors’ Report 2024
Shares issued on the exercise of
performance rights
There were 1,983,005 ordinary shares of Renascor
Resources Limited issued on the exercise of
performance rights during the year ended 30 June
2024. A further 45,300 ordinary shares of Renascor
Resources Limited issued on the exercise of
performance rights after the end of the financial year
up to the date of this report.
Indemnity and insurance of officers
The Company has indemnified the directors and
executives of the Company for costs incurred, in their
capacity as a director or executive, for which they may
be held personally liable, except where there is a lack
of good faith.
During the financial year, the Company paid a premium
in respect of a contract to ensure the directors and
executives of the Company against a liability to the
extent permitted by the Corporations Act 2001. The
contract of insurance prohibits disclosure of the
nature of the liability and the amount of the premium.
Indemnity and insurance of auditor
The Company has not, during or since the end of the
financial year, indemnified or agreed to indemnify the
auditor of the Company or any related entity against a
liability incurred by the auditor.
During the financial year, the Company has not paid a
premium in respect of a contract to insure the auditor
of the Company or any related entity.
Proceedings on behalf of the Company
No person has applied to the Court under section
237 of the Corporations Act 2001 for leave to bring
proceedings on behalf of the Company, or to intervene
in any proceedings to which the Company is a party for
the purpose of taking responsibility on behalf of the
Company for all or part of those proceedings.
Non-audit services
Details of the amounts paid or payable to the auditor
for non-audit services provided during the financial
year by the auditor are outlined in note 21 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 21 to the financial statements do
not compromise the external auditor’s independence
requirements of the Corporations Act 2001 for the
following reasons:
w all non-audit services have been reviewed and
approved to ensure that they do not impact the
integrity and objectivity of the auditor; and
w 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 Pty Ltd
There are no officers of the Company who are former
partners of BDO Audit Pty Ltd.
Auditor’s independence declaration
A copy of the auditor’s independence declaration as
required under section 307C of the Corporations Act
2001 is set out immediately after this directors’ report.
Auditor
BDO Audit 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 2024
A N N U A L R E P O R T 2 0 2 4
44
Tel: +61 8 7324 6000
Fax: +61 8 7324 6111
www.bdo.com.au
BDO Centre
Level 7, 420 King William Street
Adelaide SA 5000
GPO Box 2018 Adelaide SA 5001
Australia
DECLARATION OF INDEPENDENCE
BY PAUL GOSNOLD
TO THE DIRECTORS OF RENASCOR RESOURCES LIMITED
As lead auditor of Renascor Resources Limited for the year ended 30 June 2024, 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.
Paul Gosnold
Director
BDO Audit Pty Ltd
Adelaide, 30 September 2024
Auditor’s independence declaration
BDO Audit Pty Ltd ABN 33 134 022 870 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 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.
A N N U A L R E P O R T 2 0 2 4
45
R E N A S C O R R E S O U R C E S L I M I T E D
Financial report
A N N U A L R E P O R T 2 0 2 4
46
Consolidated
Note
2024
2023
$
$
Revenue
Interest revenue
4
5,007,080
2,967,011
Other income
540
255
Total revenue
5,007,620
2,967,266
Expenses
Administration and consulting
(978,428)
(872,505)
Depreciation and amortisation expense
10
(119,331)
(11,074)
Employee benefits expense
5
(1,792,716)
(1,292,480)
Impairment of exploration expenditure
11
(1,144)
(23,531)
Other expenses
6
(408,337)
(342,960)
Total expenses
(3,299,956)
(2,542,550)
Profit before income tax expense
1,707,664
424,716
Income tax expense
7
-
-
Profit after income tax expense for the year attributable to the
owners of Renascor Resources Limited
1,707,664
424,716
Other comprehensive income for the year, net of tax
-
-
Total comprehensive income for the year attributable to the
owners of Renascor Resources Limited
1,707,664
424,716
Cents
Cents
Basic earnings per share
29
0.07
0.02
Diluted earnings per share
29
0.07
0.02
The above statement of profit or loss and other comprehensive income should be read in conjunction with the
accompanying notes.
Statement of profit and loss and other comprehensive income
for the year ended 30 June 2024
A N N U A L R E P O R T 2 0 2 4
47
R E N A S C O R R E S O U R C E S L I M I T E D
Consolidated
Note
2024
2023
$
$
Assets
Current assets
Cash and cash equivalents
8
80,021,761
89,270,091
Other receivables
9
2,963,800
2,091,236
Financial assets
8
30,000,000
40,000,000
Prepayments
179,702
128,710
Total current assets
113,165,263
131,490,037
Non-current assets
Receivables
9
199,819
45,000
Property, plant, and equipment
10
11,514,115
38,395
Exploration and evaluation
11
1,633,840
1,496,007
Development asset
12
44,572,222
35,898,362
Total non-current assets
57,919,996
37,477,764
Total assets
171,085,259
168,967,801
Liabilities
Current liabilities
Trade and other payables
13
1,730,871
2,483,385
Lease liabilities
15
123,704
-
Provisions
14
381,851
273,934
Total current liabilities
2,236,426
2,757,319
Non-current liabilities
Lease liabilities
15
56,732
-
Provisions
14
33,296
10,150
Total non-current liabilities
90,028
10,150
Total liabilities
2,326,454
2,767,469
Net Assets
168,758,805
166,200,332
Equity
Issue capital
16
184,073,400
183,825,034
Reserves
17
1,018,354
415,911
Accumulated losses
(16,332,949)
(18,040,613)
Total equity
168,758,805
166,200,332
The above statement of financial position should be read in conjunction with the accompanying notes.
Statement of financial position as at 30 June 2024
A N N U A L R E P O R T 2 0 2 4
48
Contributed
Share-based Share option Accumulated
Total equity
equity
payments
reserve
losses
reserve
Consolidated
$
$
$
$
$
Balance at 1 July 2022
114,601,254
-
139,340
(18,465,329)
96,275,265
Profit after income tax expense for the year
-
-
-
424,716
424,716
Other comprehensive income for the year, net of tax
-
-
-
-
-
Total comprehensive income for the year
-
-
-
424,716
424,716
Transaction with owners in their capacity as owners:
Contributions of equity, net of transaction costs
69,084,440
-
-
-
69,084,440
Fair value of options exercised during the year
139,340
-
(139,340)
-
-
Share-based payments granted (note 30)
-
415,911
-
-
415,911
Balance at 30 June 2023
183,825,034
415,911
-
(18,040,613)
166,200,332
Consolidated
$
$
$
$
$
Balance at 1 July 2023
183,825,034
415,911
-
(18,040,613)
166,200,332
Profit after income tax expense for the year
-
-
-
1,707,664
1,707,664
Other comprehensive income for the year, net of tax
-
-
-
-
-
Total comprehensive income for the year
-
-
-
1,707,664
1,707,664
Transaction with owners in their capacity as owners:
Contributions of equity, net of transaction costs
-
-
-
-
Performance rights exercised (note 30),
net of transaction costs
248,366
(250,427)
-
-
(2,061)
Share-based payments granted (note 30)
-
852,870
-
-
852,870
Balance at 30 June 2024
184,073,400
1,018,354
-
(16,332,949)
168,758,805
The above statement of changes in equity should be read in conjunction with the accompanying notes.
Statement of changes in equity for the year ended 30 June 2024
A N N U A L R E P O R T 2 0 2 4
49
R E N A S C O R R E S O U R C E S L I M I T E D
Consolidated
Note
2024
2023
$
$
Cashflows from operating activities
Payments to suppliers and employees
(2,226,918)
(1,285,684)
Interest received
4,933,453
1,615,260
Net cash used in operating activities
28
2,706,535
329,576
Cash flows from investing activities
Payments for property, plant and equipment
(10,831,167)
(35,097)
Proceeds from sale of property, plant and equipment
540
255
Payments for exploration and evaluation
(119,618)
(49,523)
Payments for development assets
(10,897,739)
(14,093,418)
Proceeds from security bond refund
15,000
-
Payments for security bond
(119,819)
-
Net cash used in investing activities
(21,952,803)
(14,177,783)
Cash flows from financing activities
Proceeds from issue of shares
-
70,000,000
Proceeds from options exercised
-
2,608,972
Capital raising costs
(2,062)
(3,525,735)
Net cash from financing activities
(2,062)
69,083,237
Net increase/(decrease) in cash and cash equivalents
(19,248,330)
55,235,030
Cash and cash equivalents at the beginning of the financial year
129,270,091
74,035,061
Cash and cash equivalents at the end of the financial year
8
110,021,761
129,270,091
The above statement of cashflows should be read in conjunction with the accompanying notes.
Statement of cash flows for the year ended 30 June 2024
A N N U A L R E P O R T 2 0 2 4
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Notes to the Financial Statements 30 June 2024
1. Material accounting policy information
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.
Adoption of the new and revised accounting
standards
There are no new and revised accounting
standards issued or issued but not yet effective
which are expected to have a material impact on
the financial statements.
Recently issued accounting standards to be
applied in future accounting periods
There are no new significant accounting standards
or amendments that have not been early
adopted for the year ended 30 June 2024 but will
be applicable to the Group in future reporting
periods.
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.
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 24.
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 2024 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.
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.
A N N U A L R E P O R T 2 0 2 4
51
R E N A S C O R R E S O U R C E S L I M I T E D
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.
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.
Notes to the Financial Statements 30 June 2024
A N N U A L R E P O R T 2 0 2 4
52
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 referenced below) within the next
financial year.
Share-based payment transactions - note 30
Exploration and evaluation costs - note 11
Development assets - note 12
3. Operating segments
The Group has identified its operating segments
based on the internal reports that are reviewed
and used by the Managing Director (Chief
Operating Decision Maker ‘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.
Notes to the Financial Statements 30 June 2024
A N N U A L R E P O R T 2 0 2 4
53
R E N A S C O R R E S O U R C E S L I M I T E D
4. Interest revenue
5. Employee benefits expense
6. Other expenses
Accounting policy for 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.
Employee share-based payment expense comprises of Performance Rights granted to Mr David Christensen
and other employees during the year. Further information pertaining to the Performance Rights can be
found in note 30 “Share Based Payments”.
Included in the totals above is the employee benefits expenditure that has been capitalised as part of
Development assets (note 12) of $2,993,433 in the year ended 30 June 2024 (2023: $1,747,724). In addition,
$28,782 of employee benefits expenditure that has been capitalised as part of Exploration and evaluation
assets (note 11) in the year ended 30 June 2024 (2023: $nil). The total amount remunerated to employees
during the year is $3,962,060 (2023: $2,624,293).
Notes to the Financial Statements 30 June 2024
Consolidated
2024
2023
$
$
Interest income
5,007,080
2,967,011
5,007,080
2,967,011
Consolidated
2024
2023
$
$
Employee benefits expense
3,677,432
2,468,686
Employee share-based payment expense
852,870
415,911
Defined contribution superannuation expense
284,629
155,607
Employee benefits expense capitalised
(3,022,215)
(1,747,724)
1,792,716
1,292,480
Consolidated
2024
2023
$
$
Business development & marketing
81,000
118,271
Investor and public relations
44,157
107,960
Travel
103,091
38,211
Office accommodation
88,105
30,597
Legal fees
7,309
4,434
Other expenses
84,675
43,487
408,337
342,960
A N N U A L R E P O R T 2 0 2 4
54
7. Income Tax
The Group has tax losses arising in Australia of $44,337,060 (2023: $36,144,334) 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 2024 (2023: Nil).
No deferred tax liability has been recognised for expenditure pertaining to exploration and evaluation and
development assets. The amount of $2,244,289 is fully offset by the company’s deferred tax assets (2023:
$3,818,273).
Accounting policy for income tax
The income tax expense or benefit for the period is the tax payable on that period’s taxable income based
on the applicable income tax rate for each jurisdiction, adjusted by the changes in deferred tax assets and
liabilities attributable to temporary differences, unused tax losses and the adjustment recognised for prior
periods, where applicable.
Deferred tax assets and liabilities are recognised for temporary differences at the tax rates expected to be
applied when the assets are recovered or liabilities are settled, based on those tax rates that are enacted or
substantively enacted, except for:
• When the deferred income tax asset or liability arises from the initial recognition of goodwill or an asset
or liability in a transaction that is not a business combination and that, at the time of the transaction,
affects neither the accounting nor taxable profits; or
• When the taxable temporary difference is associated with interests in subsidiaries, associates or joint
ventures, and the timing of the reversal can be controlled, and it is probable that the temporary difference
will not reverse in the foreseeable future.
Deferred tax assets are recognised for deductible temporary differences and unused tax losses only if it is
probable that future taxable amounts will be available to utilise those temporary differences and losses.
The carrying amount of recognised and unrecognised deferred tax assets are reviewed at each reporting
date. Deferred tax assets recognised are reduced to the extent that it is no longer probable that future
taxable profits will be available for the carrying amount to be recovered. Previously unrecognised deferred
tax assets are recognised to the extent that it is probable that there are future taxable profits available to
recover the asset.
Consolidated
2024
2023
$
$
Numerical reconciliation of income tax expense and tax at the statutory rate
Profit before income tax expense
1,707,664
424,716
Tax at the statutory tax rate of 30% (2023: 30%)
512,298
127,415
Tax effect amounts which are not deductible/(taxable) in calculating taxable income:
Impairment of assets
-
4,500
Share based payments
852,871
415,911
Entertainment
-
2,520
1,365,169
550,346
Current year temporary differences not recognised
(1,365,169)
(550,346)
Income tax expense
-
-
Notes to the Financial Statements 30 June 2024
A N N U A L R E P O R T 2 0 2 4
55
R E N A S C O R R E S O U R C E S L I M I T E D
7. Income Tax 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.
Notes to the Financial Statements 30 June 2024
A N N U A L R E P O R T 2 0 2 4
56
8. Cash and cash equivalents
Cash at call accounts are interest bearing attracting market interest rates.
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 with no significant costs associated with withdrawing funds prior to
maturity and which are subject to an insignificant risk of changes in value. The carrying amount for cash and
cash equivalents equals the fair value.
Accounting policy for financial assets
Term deposits with original maturities greater than 3 months are held at amortised cost, being the initial
cash investment with the financial institution.
Consolidated
2024
2023
$
$
Current assets
Cash on hand
818
350
Cash at bank
8,058,576
411,677
Cash at call
71,962,367
88,858,064
Total Cash and cash equivalents
80,021,761
89,270,091
Reconciliation of Cash to the statement of cash flows
Cash and cash equivalents - Short term cash balances
80,021,761
89,270,091
Financial assets - Term deposits
30,000,000
40,000,000
Total cash and cash equivalents per statement of cashflows
110,021,761
129,270,091
Notes to the Financial Statements 30 June 2024
A N N U A L R E P O R T 2 0 2 4
57
R E N A S C O R R E S O U R C E S L I M I T E D
9. Other receivables
Environmental bonds receivable represents security for rehabilitation for exploration activities in the
South Australia as per the Group’s Exploration Program for Environment Protection and Rehabilitation
(E-PEPR) for various project areas pursuant to the Mining Act 1971. Of these funds, $70,000 of the bonds are
held by the South Australian Department for Energy and Mining, and $20,000 is held as a term deposit by
the Group as security for a bank guarantee with the South Australian Department for Energy and Mining.
Remaining bonds are held as a term deposit by the Group as security for a bank guarantee for the
corporate office lease.
Allowance for expected credit losses
The Group has recognised a loss of $Nil (2023: $Nil) in profit or loss in respect of the expected credit losses
for the year ended 30 June 2024.
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.
Notes to the Financial Statements 30 June 2024
Consolidated
2024
2023
$
$
Current assets
GST refundable
90,400
98,974
Sundry receivables
1,425,422
1,358,783
Research and development tax concession
1,447,978
633,479
2,963,800
2,091,236
Non-current assets
Other receivables - Bonds
199,819
45,000
Total other receivables
3,163,619
2,136,236
A N N U A L R E P O R T 2 0 2 4
58
Notes to the Financial Statements 30 June 2024
10. Property, Plant and Equipment
Reconciliations
Reconciliations of the written down values at the beginning and end of the financial year are set out below
by asset class:
* Disposal value of plant and equipment includes $716 of current financial year depreciation written back at the time
of disposal.
During the current year Renascor entered into a land purchase agreement to acquire the freehold rights
to the land underlying ML 6495, the site of the Siviour Graphite Deposit. In addition, the acquisition costs
for the proposed coastal desalination plant location have been transferred from development assets during
the period. A right of use asset was recognised in relation to the new corporate office lease.
Consolidated
2024
2023
$
$
Non-current assets
Land
11,313,338
-
Plant and equipment
54,516
49,483
Less: Accumulated depreciation
(27,494)
(11,088)
27,022
38,395
Right of use assets (buildings)
275,964
-
Less: Accumulated depreciation
(102,209)
-
173,755
-
Total Property, Plant and Equipment
11,514,115
38,395
Right of use
Plant and
assets
Land
equipment
(Buildings)
Total
Consolidated
$
$
$
$
Balance at 1 July 2022
-
11,738
-
11,738
Additions
-
37,731
-
37,731
Depreciation
-
(11,074)
-
(11,074)
Balance at 30 June 2023
-
38,395
-
38,395
Additions
10,821,207
7,427
275,964
11,104,598
Transfer from development assets
492,131
-
-
492,131
Disposals*
-
(1,678)
-
(1,678)
Depreciation
-
(17,122)
(102,209)
(119,331)
Balance at 30 June 2024
11,313,338
27,022
173,755
11,514,115
A N N U A L R E P O R T 2 0 2 4
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R E N A S C O R R E S O U R C E S L I M I T E D
Notes to the Financial Statements 30 June 2024
10. Property, Plant and Equipment continued
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:
Computer equipment
1-3 years
Office equipment
3-10 years
Building assets
10 years
The deprecation rates have not changed from the financial year ended 30 June 2023. 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.
Accounting policy for Right of use assets
The right-of-use asset is measured at cost, which is made up of the initial measurement of the lease liability,
any initial direct costs incurred by the Group, an estimate of any costs to dismantle and remove the asset
at the end of the lease, and any lease payments made in advance of the lease commencement date (net of
any incentives received). A corresponding demobilisation / restoration provision is recognised in relation to
these costs recognised within the right of use asset.
Right of use assets are depreciated using the straight-line method over the shorter of their useful life and
the lease term.
Periodic adjustments are made for any remeasurement of the lease liabilities, refer to note 15, and for
impairment losses, assessed in accordance with the Group’s impairment policies.
A N N U A L R E P O R T 2 0 2 4
60
Notes to the Financial Statements 30 June 2024
11. Exploration and evaluation
Reconciliations
Reconciliations of the value at the beginning and end of the financial year are set out below:
During the reporting period there was no impairment recognised for expenditure relating to relinquished
tenements (2023: $4,500). No other impairment indicators were identified in accordance with AASB 6 –
Exploration for and Evaluation of Mineral Resources. $1,144 (2023: $19,031) of exploration related expenditure
was expensed direct to the Statement of profit and loss.
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 Mineral Resources
and Ore Reserves. Where a project or an area of interest has been relinquished, the expenditure incurred to
date is impaired. Any subsequent costs incurred in relation to the area of interest are expensed directly to
the Statement of Profit or Loss and Other Comprehensive Income.
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 for work performed. During
the financial year the Group has capitalised $28,782 of employee costs to the exploration expenditure for the
year (2023: $Nil).
Exploration
& evaluation
assets
Total
Consolidated
$
$
Balance at 1 July 2022
1,458,671
1,458,671
Expenditure during the year
48,676
48,676
Receipts from farm-in
(6,840)
(6,840)
Impairment
(4,500)
(4,500)
Balance at 30 June 2023
1,496,007
1,496,007
Expenditure during the year
144,958
144,958
Receipts from farm-in
(7,125)
(7,125)
Impairment of assets
-
-
Balance at 30 June 2024
1,633,840
1,633,840
A N N U A L R E P O R T 2 0 2 4
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R E N A S C O R R E S O U R C E S L I M I T E D
Notes to the Financial Statements 30 June 2024
11. Exploration and evaluation continued
12. Development asset
Reconciliations
Reconciliations of the value at the beginning and end of the financial year are set out below:
Key judgement, estimates and assumptions – Impairment of exploration and evaluation assets
The future recoverability of capitalised exploration and evaluation expenditure is dependent on several
factors, including whether the Group decides to exploit the related lease itself or, if not, whether it
successfully recovers the related exploration and evaluation asset through sale or joint venture. Factors
that could impact the future recoverability include the level of Ore Reserves and Mineral Resources, future
technological changes, which could impact the cost of mining, future legislative changes, and changes to
commodity prices and exchange rates. To the extent that capitalised exploration and evaluation expenditure
is determined not to be recoverable in the future, profits and net assets will be reduced in the period in
which this determination is made. In addition, exploration and evaluation expenditure is capitalised if
activities in the area of interest have not yet reached a stage that permits a reasonable assessment of the
existence or otherwise of economically recoverable reserves. To the extent it is determined in the future
that this capitalised expenditure should be written off, profits and net assets will be reduced in the relevant
reporting period in which this determination is made.
The determination of JORC Resources is itself an estimation process that involves varying degrees of
uncertainty depending on how the Mineral Resources (i.e., measured, indicated, or inferred) and Ore
Reserves (i.e. Proven or probable) are classified. The estimates directly impact when the Group capitalises
exploration and evaluation expenditure. The capitalisation policy requires management to make certain
estimates and assumptions as to future events and circumstances, in particular, the assessment of whether
economic quantities of Ore Reserves will be found. Any such estimates and assumptions may change as new
information becomes available. The recoverable amount of capitalised expenditure relating to undeveloped
mining projects can be particularly sensitive to variations in key estimates and assumptions. If variation in
key estimates or assumptions has a negative impact on recoverable amount it could result in a requirement
for impairment.
Consolidated
2024
2023
$
$
Siviour Project - at cost
44,572,222
35,898,362
Siviour Project
Total
Consolidated
$
$
Balance at 1 July 2022
21,457,620
21,457,620
Expenditure during the year
15,074,221
15,074,221
Research and Development Tax Incentive
(633,479)
(633,479)
Balance at 30 June 2023
35,898,362
35,898,362
Expenditure during the year
10,693,854
10,693,854
Transfer to property, plant and equipment
(492,131)
(492,131)
Research and Development Tax Incentive
(1,527,863)
(1,527,863)
Balance at 30 June 2024
44,572,222
44,572,222
A N N U A L R E P O R T 2 0 2 4
62
Notes to the Financial Statements 30 June 2024
12. Development asset continued
Accounting policy for development assets
Expenditure is transferred from ‘Exploration and evaluation assets’ to ‘Development asset’ have been
assessed to be commercially feasible and support future development of the property, the costs are
transferred to ‘development assets’.
An impairment assessment is undertaken on the date assets are transferred using the recoverable amount
of the Cash Generating Units (CGU) that included the transferred development asset based on estimated
present value of the future cash flows expected to be derived from the CGU (value in use). Impairment is
recognised if the recoverable amount of the CGU is estimated to be lower than its carrying amount.
All expenditure incurred prior to commencement of production from each development property is carried
forward to the extent to which recoupment out of future revenue from the sale of production, or from the
sale of the property, is reasonably assured. When further development expenditure is incurred in respect of
a mine property after commencement of production, such expenditure is carried forward as part of the cost
of the mine property only when future economic benefits are reasonably assured, otherwise the expenditure
is classified as part of the cost of production and expensed as incurred. Such capitalised development
expenditure is added to the total carrying value of development assets being amortised.
Development asset 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 internal personnel costs of $2,993,433 to the development asset for the year (2023: $1,747,724).
Refer to note 7 for accounting policy on R&D tax incentives.
Key judgement, estimates and assumptions - impairment of development asset
The development asset had been assessed for impairment. In determining the recoverable amount of the
asset, estimates, were made to determine 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. These assessments require the use of estimates and assumptions such
as ore reserves, future production, commodity prices, discount rates, exchange rates, operating costs,
sustaining capital costs, any future development cost necessary to produce the reserves (including the
magnitude and timing of cash flows) and operating performance.
Some other factors considered in management’s assessment as to whether there existed any indicators of
impairment at the CGUs include:
• Operational and financial performance of the CGUs;
• Potential to extend mine life across all CGUs;
• The current and forecast graphite price environment; and
• Acquisitions complementing the existing CGUs of the Group.
In addition, the Group monitors impairment indicators by considering the impact of the above judgements
and assumptions on the valuation of CGUs through periodic updates to its business valuation models.
Such assumptions are subject to variation as a result of changes in future economic and operational
conditions. Consequently, the carrying value of the Group’s CGUs may differ in future years if assumptions
made do not eventuate and actual outcomes are less favourable than present assumptions.
A N N U A L R E P O R T 2 0 2 4
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R E N A S C O R R E S O U R C E S L I M I T E D
Notes to the Financial Statements 30 June 2024
12. Development asset continued
The main estimates and assumptions used are summarised below:
• The Siviour integrated project has a 40-year LOM;
• Uses the Ore Reserve estimate reported on 24 August 2023 (total 61.8Mt @7.0%) supplemented by the
Mineral Resource estimate reported on 14 September 2023 (total 123.6Mt @6.9% with 2.3% cut-off grade);
• The study is a staged development with annual production capacity of 75ktpa during stage 1 for graphite
concentrate, doubled to 150ktpa upon completion of stage 2. Further downstream processing to occurred
at the PSG plant, with annual production capacity of 50ktpa during stage 1 for PSG, doubled to 100ktpa
upon completion of stage 2;
• Pricing for graphite concentrate, PSG and fines products are based on the latest internal forecasts taking
into account expected demand and supply, benchmarked with external sources of information;
• Flat foreign exchange rate of 0.68 USD to 1 AUD over the LOM; and
• a discount rate 10% has been used for financial modelling.
Price risk
The Group is exposed to price risk from the commodity graphite. The demand for, and the price of,
commodities are highly dependent on a variety of factors, including international supply and demand,
the price and availability of substitutes, technological advances, actions taken by governments and
global economic and political developments. Given the Group’s main activities, which are focused on
the development of the Siviour Graphite Project, a fall in the price of graphite may result in a reduction
in the recoverable amount of the Siviour Project Development Asset and an impairment may need to be
recognised.
Foreign exchange risk
The Group is exposed to foreign exchange (FX) risk as the commodity graphite is sold in foreign currency,
generally US Dollars (USD), however operating and capital costs are largely in Australian dollars (AUD). A
change in the USD:AUD exchange rate may result in a reduction in the recoverable amount of the Siviour
Project Development Asset and an impairment may need to be recognised.
The Company has considered the above market conditions and changes to these estimates and is satisfied
that there is no impairment to the carrying value of the development asset.
A N N U A L R E P O R T 2 0 2 4
64
Notes to the Financial Statements 30 June 2024
13. Trade and other payables
14. Provisions
Consolidated
2024
2023
$
$
Current liabilities
Trade and other payables
700,397
756,283
Sundry creditor and accrued expenses
1,030,474
1,727,102
1,730,871
2,483,385
Consolidated
2024
2023
$
$
Current liabilities
Annual leave
183,448
106,708
Long service leave
198,403
167,226
381,851
273,934
Non-current liabilities
Long service leave
27,847
10,150
Make good provision
5,449
-
33,296
10,150
Long
Annual
Service
Leave
Leave
Make good
Total
Consolidated
$
$
$
$
Carrying amount at the start of the year
106,708
177,376
-
284,084
Additional provisions recognised
231,752
48,874
5,449
286,075
Payments
(155,012)
-
-
(155,012)
Carrying amount at the end of the year
183,448
226,250
5,449
415,147
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.
Movements in provisions
Movements in each class of provision during the current financial year, are set out below:
A N N U A L R E P O R T 2 0 2 4
65
R E N A S C O R R E S O U R C E S L I M I T E D
Notes to the Financial Statements 30 June 2024
14. Provisions continued
Accounting policy for provisions
These provisions represent a present obligation as a result of past events, where it is probable that an
outflow of resources will be required to settle the obligation. The current portion of this liability includes
all accrued annual leave and the unconditional entitlements to long service leave where employees have
completed the required period of service, including pro-rata elements. However, based on past experience,
the Group does not expect all employees to take the full amount of accrued leave or require payment within
twelve months. Notwithstanding the classification of annual leave as a long-term employee benefit, the
related obligations are presented as current liabilities in the statement of financial position as the Group
does not have an unconditional right to defer settlement for at least twelve months after the reporting date,
regardless of when actual settlement is expected to occur.
A make good provision has been recognised at the present value of the anticipated cost to restore the
current office premises in accordance with the lease conditions.
Accounting policy for employee benefits
Short-term employee benefits
Liabilities for accumulating leave entitlements that are expected to be settled wholly within twelve months
after the end of the period in which the employees render the related service are recognised in respect of
employees’ services up to the end of the reporting period and are measured at the amounts expected to
be paid when the liabilities are settled. All other short-term employee benefit obligations are presented as
payables.
Other long-term employee benefit obligations
The liabilities for long service leave are not expected to be settled within twelve months after the end of the
period in which the employees render the related service. They are therefore recognised in the provision for
employee benefits and measured as the present value of expected future payments to be made in respect
of services provided up to the reporting date. Consideration is given to future wage and salary levels,
experience of employee departures and periods of service. Expected future payments are discounted using
market yields at the reporting date on high quality corporate bonds with terms to maturity and currency
that match, as closely as possible, the estimated future cash outflows.
A N N U A L R E P O R T 2 0 2 4
66
15. Lease liabilities
Consolidated
2024
2023
$
$
Lease liabilities - Current
123,704
-
Lease liabilities - Non-current
56,732
-
Consolidated
2024
2023
$
$
Depreciation of right of use assets
102,209
-
Interest expense
19,447
-
Total recognised in the income statement
121,656
-
Impact on the income statement
The following amounts have been recognised in the statement of profit or loss:
Accounting policy for short term leases and leases of low value assets
The Group has elected to account for short-term leases and leases of low-value assets using the practical
expedients. Instead of recognising a right-of-use asset and lease liability, the payments in relation to these
are recognised as an expense in Statement of Profit or Loss as they are incurred.
Accounting policy for lease liabilities
A lease is defined as a contract, or part of a contract, that conveys that the Group has the right to direct the
use of an identified asset which is not substitutable and to obtain substantially all economic benefits from
the use of the identified asset throughout the period of use. The Group separates the lease and non-lease
components of the contract and accounts for these separately. The Group recognises lease liabilities to
make lease payments and right of use assets representing the right to use the underlying assets. During the
current period, the Group entered into a lease contract for the corporate office for a term of two years.
At the commencement date, the Group measures the lease liabilities at the present value of the lease
payments unpaid at that date, discounted using the interest rate implicit in the lease if that rate is readily
available or an estimate of the Group’s incremental borrowing rate.
Lease payments included in the measurement of the lease liability are made up of fixed payments (including
in substance fixed), variable payments based on an index or rate, amounts expected to be payable under a
residual value guarantee and payments arising from options reasonably certain to be exercised.
Subsequent to initial measurement, the lease liabilities will be reduced for payments made and increased
for interest. It is remeasured to reflect any reassessment or modification, or if there are changes in in-
substance fixed payments. When the lease liabilities are remeasured, the corresponding adjustment is
reflected in the right-of-use asset, or in the Statement of Profit and Loss if the right-of-use asset is already
reduced to zero.
Refer to note 10 for detail on right of use assets recognised in relation to the lease.
Refer to note 14 for make good provision recognised in relation to the lease.
Notes to the Financial Statements 30 June 2024
A N N U A L R E P O R T 2 0 2 4
67
R E N A S C O R R E S O U R C E S L I M I T E D
16. Issued Capital
15. Lease liabilities continued
2024
Shares
$
(a) Issued and paid up capital
Fully paid ordinary shares
2,541,390,503
184,073,400
(b) Movements in fully paid shares
Opening Balance
2,539,407,498
183,825,034
Exercise of performance rights
1,983,005
250,427
Transaction costs arising on share issues, net of tax
-
(2,061)
Balance as at 30 June 2024
2,541,390,503
184,073,400
2023
Shares
$
(a) Issued and paid up capital
Fully paid ordinary shares
2,539,407,498
183,825,034
(b) Movements in fully paid shares
Opening Balance
2,154,413,438
114,601,254
Share placements
254,545,455
70,000,000
Exercise of options
130,448,605
2,748,312
Transaction costs arising on share issues, net of tax
-
(3,524,532)
Balance as at 30 June 2023
2,539,407,498
183,825,034
Key judgement, estimates and assumptions: Estimating the incremental borrowing rate
The Group cannot readily determine the interest rate implicit in its leases. Therefore, it uses the relevant
incremental borrowing rate to measure lease liabilities. The incremental borrowing rate is the rate of
interest that the Group would have to pay to borrow over a similar term, and with a similar security,
the funds necessary to obtain an asset of a similar value to the right of use asset in a similar economic
environment. The incremental borrowing rate, therefore, reflects what the Group would have to pay,
which requires estimation when no observable rates are available and to make adjustments to reflect the
terms and conditions of the lease. The Group estimates the incremental borrowing rate using observable
inputs (such as market interest rates) when available and considered certain contract and entity specific
judgements estimates (such as the lease term and credit rating). The incremental borrowing rate range used
by the Group was 10%.
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.
Notes to the Financial Statements 30 June 2024
A N N U A L R E P O R T 2 0 2 4
68
Notes to the Financial Statements 30 June 2024
16. Issued Capital continued
Share buy-back
There is no current on-market share buy-back.
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.
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 Group is not currently subject to any financing arrangements covenants. When the group is subject to
financing arrangements covenants, meeting them is the priority in all capital risk management decisions.
There have been no events of default on financing arrangements during the financial year or in the past.
The capital risk management policy remains unchanged from the 30 June 2023 Annual Report.
Share based payments reserve
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.
17. Reserves
Consolidated
2024
2023
$
$
Share based payments reserve
1,018,354
415,911
A N N U A L R E P O R T 2 0 2 4
69
R E N A S C O R R E S O U R C E S L I M I T E D
Notes to the Financial Statements 30 June 2024
17. Reserves continued
Movements in reserve
Movements in each class of reserve during the current and previous financial year are set out below:
Share
Option
based
reserve
payments
Total
Consolidated
Note
$
$
$
Balance at 1 July 2022
139,340
-
139,340
Exercise of options *
(139,340)
-
(139,340)
Performance rights - granted
-
415,911
415,911
Balance at 30 June 2023
-
415,911
415,911
Performance rights - granted
-
852,870
852,870
Performance rights - exercised
-
(250,427)
(250,427)
Balance at 30 June 2024
-
1,018,354
1,018,354
* Options exercised for weighted average price of $0.02 per share option. The 20,000,000 exercised options
issued to consultants in December 2020 for services provided for assistance with the capital raise had a fair
value of $139,340. During the period there were also 130,448,605 share options exercised, including 750,000
to directors, for an exercise price of $0.02 which were attached to the Ordinary shares issued as part of the
December 2020 capital raise. These were not share based payments and have no attributable fair value within
the share based payments reserve.
A N N U A L R E P O R T 2 0 2 4
70
Notes to the Financial Statements 30 June 2024
17. Reserves continued
Number of
Weighted
performance
average
rights
Value**
exercise
Consolidated
$
$
price
Balance at 1 July 2022
6,000,000
-
$Nil
Granted
1,852,515
415,911
$Nil
Lapsed *
(6,000,000)
-
$Nil
Balance at 30 June 2023
1,852,515
415,911
$Nil
Granted ***
4,432,062
976,747
$Nil
Replaced ***
(750,000)
(123,877)
$Nil
Exercised
(309,204)
(250,427)
$Nil
Balance at 30 June 2024
5,225,373
1,018,354
$Nil
* The performance rights which expired and lapsed in September 2022 were not expected to vest, as such they were
revalued to $Nil in the year ended 30 June 2022.
** Refer to note 30 Share based payments for details on fair value attributable to performance rights.
*** Granted performance rights includes the 2,141,692 performance rights issued which replaced the 750,000 performance
rights granted during the year ended 30 June 2023, but never issued, and subsequently forfeited and replaced with in
accordance with the 2023 AGM resolution. Refer to note 30 Share based payments for further details on this transaction.
18. Dividends
19. Financial instruments
There were no dividends paid, recommended or declared during the current or previous financial year.
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.
A N N U A L R E P O R T 2 0 2 4
71
R E N A S C O R R E S O U R C E S L I M I T E D
Notes to the Financial Statements 30 June 2024
Market risk
Price risk
The Group is not exposed to any significant price risk from its financial instruments.
Interest rate risk
As at 30 June 2024 and 30 June 2023, the Group had no borrowings.
At the reporting date, the Group is only 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 +1.0% and -1.0% (2023: +1.0%/ -1.0%), 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 average cash and cash equivalents held for each reporting
period. All other variables are held constant.
The Group holds the following financial instruments:
19. Financial instruments continued
Consolidated
2024
2023
$
$
Financial assets at amortised cost
Cash and cash equivalents
80,021,761
89,270,091
Other receivables
3,163,619
2,136,236
Financial assets
30,000,000
40,000,000
Total financial assets
113,185,380
131,406,327
Financial liabilities at amortised cost
Trade and other payables
700,397
756,283
Sundry creditors & accrued expenses
1,030,474
1,727,102
Total financial liabilities at amortised cost
1,730,871
2,483,385
Basis points increase
Basis points decrease
Basis points
Effect on
Effect on
Basis points
Effect on
Effect on
change
profit before
equity
change
profit before
equity
Consolidated - 2024
tax
tax
Cash and cash equivalents
100
1,128,011
1,128,011
(100)
(1,128,011)
(1,128,011)
Consolidated - 2023
Cash and cash equivalents
100
1,048,734
1,048,734
(100)
(1,048,734)
(1,048,734)
A N N U A L R E P O R T 2 0 2 4
72
Notes to the Financial Statements 30 June 2024
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:
19. Financial instruments continued
Consolidated
2024
2023
$
$
Cash and cash equivalents including all deposits
Minimum rating of A
110,021,761
129,270,091
A N N U A L R E P O R T 2 0 2 4
73
R E N A S C O R R E S O U R C E S L I M I T E D
Notes to the Financial Statements 30 June 2024
Liquidity risk
Prudent liquidity risk management implies maintaining sufficient cash and marketable securities
and the availability of funding through an adequate amount of committed credit facilities to meet
obligations when due and close out market positions. At the end of each reporting period the Group
held cash and deposits at call of $80,021,761 (2023: $89,270,091) that are expected to readily generate
cash inflows for managing liquidity risk. In addition, the Group held $30,000,000 (2023: $40,000,000)
of term deposits at the bank with a term greater than 3 months but less than 12 months which could
also be utilised to manage liquidity risk The Group has sufficient funds to finance its current corporate,
development 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.
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.
19. Financial instruments continued
Weighted
1 year
Between
Between
Over 5 years
Remaining
average
or less
1 & 2 years
2 & 5 years
contractual
interest rate
maturities
Consolidated - 2024
%
$
$
$
$
$
Non-derivatives
Non-interest bearing
Trade payables
-
700,397
-
-
-
700,397
Other payables
-
1,030,474
-
-
-
1,030,474
Total non-derivatives
1,730,871
-
-
-
1,730,871
Consolidated - 2023
Non-derivatives
Non-interest bearing
Trade payables
-
756,283
-
-
-
756,283
Other payables
-
1,727,102
-
-
-
1,727,102
Total non-derivatives
2,483,385
-
-
-
2,483,385
A N N U A L R E P O R T 2 0 2 4
74
Notes to the Financial Statements 30 June 2024
Compensation
The aggregate compensation made to directors and other members of key management personnel of the
Group is set out below:
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 director of 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 $50,399 (2023: $292,332) from Euro. An amount of $2,027 (2023: $3,233) was
owing to Euro at 30 June 2024.
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 $39,900 (2023: $68,756) from GW McConachy & Co Pty Ltd. An amount of $nil
(2023: $9,900) was owing to GW McConachy & Co Pty Ltd at 30 June 2024.
Mr S Bizzell is a director of 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 $nil (2023: $26,858).
An amount of $8,167 of director’s fees was owing to BCP at 30 June 2024 (2023: $16,333).
At 30 June 2024 a reimbursement to Mr Christensen of $2,278 was outstanding (2023: $12,775).
20. Key management personnel disclosures
Consolidated
2024
2023
$
$
Short-term employee benefits
1,018,184
1,008,487
Post-employment benefits
51,115
46,585
Long-term benefits
31,178
37,668
Performance rights
418,544
399,669
1,519,021
1,492,409
During the financial year the following fees were paid or payable for services provided by
BDO Audit Pty Ltd, the auditor of the Company:
21. Remuneration of auditors
Consolidated
2024
2023
$
$
Audit services - BDO Audit Pty Ltd
Audit or review of the financial statements
53,837
45,200
Other services
Amounts paid/payable to a related practice of the auditor for tax compliance for the
entity or any entity in the Group
15,941
7,659
69,778
52,859
A N N U A L R E P O R T 2 0 2 4
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R E N A S C O R R E S O U R C E S L I M I T E D
Notes to the Financial Statements 30 June 2024
The Group has previously entered into Asset Sale Agreements with Hiltaba Gold Pty Ltd for EL5856
(previously EL4707). Under each agreement, the Company has granted a 1% royalty of the Net Smelter
Return. The timing and amount of any financial effect relating to these agreements are dependent on
the successful exploration and subsequent exploitation of the associated tenements.
Parent entity
Renascor Resources Limited is the parent entity.
Subsidiaries
Interests in subsidiaries are set out in note 26.
Key management personnel
Disclosures relating to key management personnel are set out in note 20 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 20.
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 20.
Loans to/from related parties
There were no loans to or from related parties at the current and previous reporting date.
Exploration and mining lease 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:
To keep tenements in good standing, work programs should meet certain minimum expenditure
requirements. If the minimum expenditure requirements are not met, the Group has the option to
negotiate new terms or relinquish the tenements. The Group also has the ability to meet expenditure
requirements by joint venture or farm‑in agreements.
22. Contingent liabilities
24. Related party transactions
23. Commitments
Consolidated
2024
2023
$
$
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
1,460,966
1,090,972
One to five years
355,361
989,316
Greater than five years
-
24,247
1,816,327
2,104,535
A N N U A L R E P O R T 2 0 2 4
76
Notes to the Financial Statements 30 June 2024
Set out below is the supplementary information about the parent entity.
Statement of profit or loss and other comprehensive income
Statement of financial position
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 2024.
Contingent liabilities
The Group has previously entered into Asset Sale Agreements with Hiltaba Gold Pty Ltd for EL5856
(previously EL4707). Under each agreement, the Company has granted a 1% royalty of the Net Smelter
Return. The timing and amount of any financial effect relating to these agreements are dependent on
the successful exploration and subsequent exploitation of the associated tenements.
Capital commitments - Property, plant and equipment
The parent entity had no capital commitments for property, plant and equipment as at 30 June 2024.
Material accounting policy information
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.
• 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.
25. Parent entity information
Parent
2024
2023
$
$
Profit after income tax
1,707,664
424,716
Total comprehensive income
1,707,664
424,716
Parent
2024
2023
$
$
Total current assets
113,165,165
131,489,937
Total assets
171,085,259
168,967,801
Total current liabilities
2,236,426
2,757,319
Total liabilities
2,326,454
2,767,469
Equity
Issued capital
184,073,400
183,825,034
Share based payment reserve
1,018,354
415,911
Accumulated losses
(16,332,949)
(18,040,613)
Total equity
168,758,805
166,200,332
A N N U A L R E P O R T 2 0 2 4
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R E N A S C O R R E S O U R C E S L I M I T E D
Notes to the Financial Statements 30 June 2024
The consolidated financial statements incorporate the assets, liabilities and results of the following
subsidiaries in accordance with the accounting policy described in note 1:
On 11 July 2024, Renascor announced that it had been awarded a $5 million grant for the BAM project
under the Australian Government’s International Partnerships in Critical Minerals Program, which is
intended to support critical minerals projects that contribute to building end-to-end supply chains with
Australia’s international partners in the critical minerals sector. The grant was awarded to Renascor to
co-fund up to 49.9% of the capital cost of a $10 million demonstration processing plant that will produce
battery-grade PSG for use in lithium-ion battery anodes.
On 21 August 2024, Renascor announced the successful completion of equipment trials for its planned
PSG manufacturing facility. The trials successfully produced lithium-ion battery grade graphite across all
targeted product specifications, further validating Renascor’s eco-friendly, hydrofluoric free purification
process.
On 27 August 2024, Renascor announced the registration of it’s ILUA with BDAC. As part of this agreement
393,868 shares to the fair value of $35,000 were issued to BDAC on this date. These shares are subject to
voluntary escrow until 27 February 2025.
On 23 September 2024, Renascor announced that it had completed the collection of a 730 tonne bulk
sample from the Siviour Graphite Deposit. The large scale sample will be used to produce graphite
concentrate for the planned PSG demonstration facility.
No other matters or circumstance has arisen since 30 June 2024 that has significantly affected, or may
significantly affect the Group’s operations, the results of those operations, or the state of affairs of the
Group in the subsequent period.
26. Interests in subsidiaries
27. Events after the reporting period
Ownership interest
Principal place of business/
2024
2023
Name
Country of incorporation
%
%
Kulripa Uranium Pty Ltd
Australia
100.00
100.00
Astra Resources Pty Ltd
Australia
100.00
100.00
Sol Jar Property Pty Ltd
Australia
100.00
100.00
Eyre Peninsula Minerals Pty Ltd
Australia
100.00
100.00
Ausmin Development Pty Ltd
Australia
100.00
100.00
A N N U A L R E P O R T 2 0 2 4
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28. Reconciliation of cash flows from operating activities
In the year ended 30 June 2023, the Group generated a profit, and 1,852,515 dilutive performance rights were
included for the weighted average number of ordinary shares for the diluted earnings per share calculation.
In the year ended 30 June 2024, the Group generated a profit, and 5,225,373 dilutive performance rights were
included for the weighted average number of ordinary shares for the diluted earnings per share calculation.
Where performance rights do not convert directly as 1:1 instruments the estimated number of ordinary
shares converted at anticipated point of vesting for each relevant tranche of performance rights has been
included in the weighted average number of ordinary shares used in calculating diluted earnings per share.
29. Earnings per share
Consolidated
2024
2023
$
$
Profit after income tax expense for the year
1,707,664
424,716
Adjustments for:
Impairment of tenements
-
4,500
Share based payments
852,870
415,911
Depreciation and amortisation
119,331
11,074
(Sales)/ disposals of property, plant and equipment
1,138
(255)
Change in operating assets and liabilities:
Increase/(decrease) in provisions
(123,456)
387,718
Increase/(decrease) in trade and other payables
329,453
144,737
(Increase)/decrease in other receivables
(139,701)
(1,001,913)
(Increase)/decrease in other operating assets
(40,764)
(56,912)
Net cash received in operating activities
2,706,535
329,576
Consolidated
2024
2023
$
$
Profit after income tax expense for the year
1,707,664
424,716
Cents
Cents
Basic earnings per share
0.07
0.02
Diluted earnings per share
0.07
0.02
Number
Number
Weighted average number of ordinary shares used in calculating basic earnings per share
2,539,803,015
2,369,539,586
Weighted average number of ordinary shares used in calculating diluted earnings per share
2,548,720,502
2,371,392,101
Notes to the Financial Statements 30 June 2024
A N N U A L R E P O R T 2 0 2 4
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R E N A S C O R R E S O U R C E S L I M I T E D
Notes to the Financial Statements 30 June 2024
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.
Directors and executives share based payments
No director’s remuneration was paid via issuance of shares or options in the year ended
30 June 2024 (2023: $Nil).
Share based payments to consultants
During the period there were no shares, options or performance rights issued to consultants for any
services performed (2023: $Nil).
Performance rights granted to directors and employees
There were 1,500,000 performance rights granted to the Managing Director and 352,515 performance
rights granted to employees as remuneration during the year ended 30 June 2023. Of these
instruments 352,515 performance rights were issued to employees during the financial year ended
30 June 2024. In October 2023 half of the performance rights granted to the Managing Director were
issued. At the November 2023 AGM it was resolved by the shareholders of the Company that in lieu
of the remaining 750,000 performance rights granted in the year ended 30 June 2023, a replacement
parcel of 2,141,692 performance rights under the vesting conditions and conversion factors set out in
the tables on the following pages were issued during the year ended 30 June 2024. In addition, there
were 2,290,370 new performance rights granted and issued to employees of the Company during the
year ended 30 June 2024.
The amount expensed during the period includes performance rights granted in previous financial
periods as well as new instruments granted in the current period with the expense recognised
evenly over the vesting period and where applicable current assessment of likelihood of achieving
vesting conditions attached to these performance rights.
Directors
The table below sets out the original conditions attached to the 1,500,000 performance rights
granted to employees during the year ended 30 June 2023, of which 750,000 were issued on
19 October 2023.
29. Earnings per share continued
30. Share based payments
A N N U A L R E P O R T 2 0 2 4
80
Notes to the Financial Statements 30 June 2024
Fair value
Performance
per right
Expiry upon
Rights Granted
Grant date
at grant date
Vesting criteria
Last vesting date
vesting
150,000**
30 Nov 22
$0.970
Satisfactory completion of a DFS in
Vested
19 Oct 28
relation to the Siviour Project
375,000**
30 Nov 22
$0.946
Successful completion of foundation
19 Oct 26*
19 Oct 28
binding off-take agreement(s) for
at least 60% of planned phase one
production of primary PSG
375,000**
30 Nov 22
$0.899
Completion of FID in relation to the
19 Oct 26*
19 Oct 28
start-up of the first phase of the
Siviour Project
450,000**
30 Nov 22
$0.850
Completion of the construction
19 Oct 26*
19 Oct 28
construction and commissioning of
all plant in relation to the start-up of
the first phase of the Siviour Project
150,000**
30 Nov 22
$0.820
First commercial shipment of product
19 Oct 26*
19 Oct 28
750,000** Total performance rights granted
30. Share based payments continued
* Milestone Dates for all Tranches of performance rights issued in the current year is 3 years from the Date of Issue, with the
capacity to be extended to 4 years from Date of Issue at the discretion of the Board.
** Each Performance Right granted to the Managing Director is eligible to convert into ordinary shares in the Company (subject
to giving notice of intention to exercise within the Exercise Period, and subject to the Cap), calculated in accordance with the
below formula, upon vesting.
S = P / VWAP
Where:
‘S’ is the number of shares eligible to be issued on conversion of Performance Rights;
‘P’ is the number of Performance Rights in respect of a particular Tranche; and
‘VWAP’ is the volume weighted average price of Shares on ASX calculated for the quarter ended
30 September of the financial year in which the relevant Performance Condition is met.
The total number of Vested Performance Rights in respect of which Mr Christensen may give notice of intention to
exercise in any given financial year until the expiry of the Exercise Period (and which may therefore convert into Ordinary
Shares) be capped at 250,000 per year (Cap), with any unutilised Cap from prior years able to be carried forward until
the expiry of the Exercise Period, being 6 years from the Date of Issue. The unutilised Cap from Year 1 has been carried
forward to the current period.
Under the conditions approved at the 2022 and 2023 AGM by shareholders, the 750,000 performance rights issued are across
the five tranches of performance conditions above. Once a performance condition is achieved the full allocation
of performance rights applicable to that performance condition vest until the 750,000 limit is reached.
A N N U A L R E P O R T 2 0 2 4
81
R E N A S C O R R E S O U R C E S L I M I T E D
Notes to the Financial Statements 30 June 2024
Fair value
Performance
per right
Expiry upon
Rights Granted
Grant date
at grant date
Vesting criteria
Milestone date
vesting
856,677
21 Nov 23
$0.357***
Relative TSR Milestone*
30 Jun 26
24 Nov 27
1,285,015
21 Nov 23
$0.261***
Absolute TSR Milestone**
30 Jun 26
24 Nov 27
2,141,692 Total performance rights granted
TSR of Core relative to TSRs of constituents of the nominated peer group
Proportion of performance right
shown below
that vest
is at or below the 50th percentile (the median) TSR of the companies in the
comparator group
Nil
exceeds the 50th percentile TSR of the comparator group, up to the
75th percentile (upper quartile)
sliding scale between 50% and 100%
exceeds the 75th percentile TSR of the comparator group
100%
TSR of Core relative to TSRs of constituents of the nominated peer group
Proportion of performance right
shown below
that vest
less than 10% Compound Annual Growth Rate (CAGR) for TSR over the
performance period (i.e. based on a 30-day VWAP to 30 June 2023, of $0.193,
the 10% CAGR TSR threshold will be $0.257)
Nil
10% to 20% CAGR for TSR over the performance period (i.e. based on a 30-day
VWAP to 30 June 2023, of $0.193, the 20% CAGR TSR hurdle will be $0.334)
sliding scale between 0% and 100%
greater than 20% CAGR for TSR over the performance period
100%
30. Share based payments continued
* The Relative TSR performance hurdle is determined in accordance with the table below:
** The absolute TSR performance hurdle is determined in accordance with the table below:
*** Fair value of the designated replacement performance rights is the fair value of the modified 750,000 performance
rights granted at the 2022 AGM and subsequently replaced in the current period plus any surplus of the fair value of
the TSR instruments issued. Fair value attributable to each tranche for the replaced 750,000 performance rights was
split based on the proportion of the total fair value of the TSR replacement instruments.
Performance rights are convertible 1:1 for ordinary shares subject to the achievement of relevant vesting conditions. This
is in contrast to the conversion factor applicable for the FY23 LTI rights.
This represents 40% of the total Performance rights issued.
This represents 60% of the total Performance rights issued.
Per the 2023 AGM resolution, the remaining 750,000 performance rights not issued were replaced with
2,141,692 new performance rights. The following table outlines conditions attached to these replacement
performance rights issued on 24 November 2023.
A N N U A L R E P O R T 2 0 2 4
82
Notes to the Financial Statements 30 June 2024
The nominated peer group of companies are shown in the table below:
Employees
The table below sets out conditions attached to the 352,515 performance rights granted to employees during
the year ended 30 June 2023, issued on 14 July 2023.
Alliance Nickel Ltd
Altech Batteries Ltd
Arafura Rare Earths Ltd
Ardea Resources Ltd
Black Rock Mining Ltd
Blackstone Minerals Ltd
Centaurus Metals Ltd
Cobalt Blue Holdings Ltd
Element 25 Ltd
Euro Manganese Inc
Galileo Mining Ltd
Hastings Technology Metals Ltd
Jervois Global Ltd
Jindalee Resources Ltd
Legend Mining Ltd
Lithium Energy Ltd
Lunnon Metals Ltd
Magnis Energy Technologies Ltd
Neometals Ltd
Novonix Ltd
Poseidon Nickel Ltd
Quantum Graphite Ltd
Queensland Pacific Metals Ltd
Sayona Mining Ltd
Sovereign Metals Ltd
Syrah Resources Ltd
Talga Group Ltd
VHM Ltd
Walkabout Resources Ltd
30. Share based payments continued
The TSR calculation formula will be as follows:
TSR = 30 trading day VWAP to 30 June 2026 + Dividends paid in performance period - 30 trading day VWAP to 30 June 2023
30 trading day VWAP to 30 June 2023
Fair value
Performance
per right
Expiry upon
Rights Granted
Grant date
at grant date
Vesting criteria
Last vesting date
vesting
33,358
11 Jan 23
$0.266
1 years’ service from grant date
12 Jan 24
12 Jan 26
33,359
11 Jan 23
$0.266
2 years’ service from grant date
12 Jan 25
12 Jan 26
33,359
11 Jan 23
$0.266
3 years’ service from grant date
12 Jan 26
12 Jan 26
38,846
28 Feb 23
$0.245
1 years’ service from grant date
1 Mar 24
1 Mar 26
38,846
28 Feb 23
$0.245
2 years’ service from grant date
1 Mar 25
1 Mar 26
38,846
28 Feb 23
$0.245
3 years’ service from grant date
1 Mar 26
1 Mar 26
45,300
1 May 23
$0.212
1 years’ service from grant date
1 May 24
1 May 26
45,300
1 May 23
$0.212
2 years’ service from grant date
1 May 25
1 May 26
45,301
1 May 23
$0.212
3 years’ service from grant date
1 May 26
1 May 26
352,515
Total performance rights granted
A N N U A L R E P O R T 2 0 2 4
83
R E N A S C O R R E S O U R C E S L I M I T E D
Notes to the Financial Statements 30 June 2024
The table below sets out conditions attached to performance rights granted to employees during the year
ended 30 June 2024.
30. Share based payments continued
Performance
Fair value
Rights
per right
Expiry upon
Granted***
Grant date
at grant date
Vesting criteria
Last vesting date
vesting
75,390
27 Oct 23
$0.160
1 years’ service from grant date
28 Oct 24
28 Oct 26
75,390
27 Oct 23
$0.160
2 years’ service from grant date
28 Oct 25
28 Oct 26
75,390
27 Oct 23
$0.160
3 years’ service from grant date
28 Oct 26
28 Oct 26
67,086
2 Nov 23
$0.150
1 years’ service from grant date
3 Nov 24
3 Nov 26
67,086
2 Nov 23
$0.150
2 years’ service from grant date
3 Nov 25
3 Nov 26
67,087
2 Nov 23
$0.150
3 years’ service from grant date
3 Nov 26
3 Nov 26
60,008
19 Dec 23
$0.115
1 years’ service from grant date
23 Nov 24
23 Nov 26
60,008
1 May 23
$0.115
2 years’ service from grant date
23 Nov 25
23 Nov 26
60,008
1 May 23
$0.115
3 years’ service from grant date
23 Nov 26
23 Nov 26
464,367
24 Nov 23
$0.120
Relative TSR Milestone*
30 Jun 26
24 Nov 27
696,550
24 Nov 23
$0.086
Absolute TSR Milestone*
30 Jun 26
24 Nov 27
87,000**
24 Nov 23
$0.995
Satisfactory completion of a DFS
Vested
24 Nov 28
in relation to the Siviour Project
217,500**
24 Nov 23
$0.962
Successful completion of foundation
24 Nov 26
24 Nov 28
binding off-take agreement(s) for at
least 60% of planned phase one
production of primary PSG
217,500**
24 Nov 23
$0.550
Completion of FID in relation to the
24 Nov 26
24 Nov 28
start-up of the first phase of the
Siviour Project
261,000**
24 Nov 23
$nil
Completion of the construction and
24 Nov 26
24 Nov 28
commissioning of all plant in relation to
the start-up of the first phase of the
Siviour Project
87,000**
24 Nov 23
$nil
First commercial shipment of product
24 Nov 26
24 Nov 28
2,290,370 Total performance rights granted
A N N U A L R E P O R T 2 0 2 4
84
* Conditions attached to these performance rights are consistent with the vesting criteria as disclosed above for the
Managing Director.
** Milestone Dates for all Tranches of performance rights issued in the current year is 3 years from the Date of Issue, with
the capacity to be extended to 4 years from Date of Issue at the discretion of the Board.
The 522,000 performance rights issued are across the five tranches of performance conditions noted above. Once a
performance condition is achieved the full allocation of performance rights applicable to that performance condition
vest until the 522,000 limit is reached.
Each Performance Right granted to the employee is eligible to convert into ordinary shares in the Company (subject to
giving notice of intention to exercise within the Exercise Period, and subject to the Cap), calculated in accordance with
the below formula, upon vesting.
S = P / VWAP
Where:
‘S’ is the number of shares eligible to be issued on conversion of Performance Rights;
‘P’ is the number of Performance Rights in respect of a particular Tranche; and
‘VWAP’ is the volume weighted average price of Shares on ASX calculated for the quarter ended
30 September of the financial year in which the relevant Performance Condition is met.
It is intended that the total number of Vested Performance Rights in respect of which the employee may give notice of
intention to exercise in any given financial year until the expiry of the Exercise Period (and which may therefore convert
into Ordinary Shares) be capped at 145,000 per year (Cap), with any unutilised Cap from prior years able to be carried
forward until the expiry of the Exercise Period, being 6 years from the Date of Issue. The unutilised Cap from Year 1 has
been carried forward to the current period.
*** Performance rights issued to employees noted above are convertible 1:1 for ordinary shares subject the achievement of
the relevant service condition unless noted above.
30. Share based payments continued
Notes to the Financial Statements 30 June 2024
The table below outlines the summary of inputs used in the fair value calculation for the performance rights
granted under the performance share plan in each period:
* Where applicable, the expected volatility has been based on the evaluation of the historical volatility of the Company’s share
price, particularly over the historical period commensurate with the expected performance right life.
** Where applicable, this is based on high quality government bonds sourced from the Reserve Bank of Australia which reflect
the period commensurate with the performance right life.
*** Performance rights where only service conditions are attached are not impacted by the Expected share price volatility and
risk-free rate and as such have not been included within this line of the table above.
2024
2023
Valuation inputs at grant date for performance rights
Directors
Employees
Directors
Employees
Exercise price
Nil
Nil
Nil
Nil
Performance right life
2.6 years
0.1 - 3.0 years
1 - 6 years
1 - 3 years
Underlying share price at grant date
$0.150
$0.115 - $0.160
$0.350 $0.212 - $0.266
Expected share price volatility (weighted average) *
89.6%
89.6%
N/A
N/A
Risk free interest rate **
4.1%
3.5 - 4.3%
3.1 - 3.4%
N/A
Fair value at grant date (weighted average)
$0.109
$0.304
$0.895
$0.238
Contractual life (weighted average)
4.0 years
3.95 years
6.0 years
2.0 years
A N N U A L R E P O R T 2 0 2 4
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R E N A S C O R R E S O U R C E S L I M I T E D
Notes to the Financial Statements 30 June 2024
Key judgement, estimate and assumptions - fair value of performance rights granted:
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. Where conditions attached to
performance rights are more onerous than specified period of service, the fair value is determined by
using the Monte Carlo 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.
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 performance rights based on no past history regarding expected exercise or any
variation of the expiry date. Accordingly, the expected life of the performance rights 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, employees and consultants through the
form of share based compensation, whereby the identified parties render services in exchange for shares,
options or performance rights over shares (equity-settled transactions).
The cost of these equity-settled transactions is measured by reference to the fair value at the date at
which they are granted. The fair value of share options and performance rights is determined using
an appropriate pricing model on grant date methodology depending on the nature of the option or
performance rights terms as noted above.
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.
Non-market vesting conditions are included in assumptions about the number of options and
performance rights that are expected to vest and become exercisable.
At each reporting date, the entity revises its estimates of the number of options and performance rights
that are expected to vest and become exercisable.
The cost of equity-settled transactions is recognised, together with a corresponding increase in equity,
over the period in which the performance conditions are fulfilled, ending on the date on which the
relevant parties become fully entitled to the award (vesting date).
The cumulative expense recognised for equity-settled transactions at each reporting date until vesting
date reflects:
i) the extent to which the vesting period has expired, and
ii) the number of awards that, in the opinion of the Directors of the Group, will ultimately vest.
This opinion is formed based on the best available information at reporting date. No adjustment is
made for the likelihood of market performance conditions being met as the effect of these conditions is
included in the determination of fair value at grant date.
Where the terms of an equity-settled award are modified, as a minimum an expense is recognised as if the
terms had not been modified. In addition, an expense is recognised for any increase in the value of the
transaction as a result of the modification, as measured at the date of modification.
30. Share based payments continued
A N N U A L R E P O R T 2 0 2 4
86
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.
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.
30. Share based payments continued
A N N U A L R E P O R T 2 0 2 4
87
R E N A S C O R R E S O U R C E S L I M I T E D
Consolidated Entity Disclosure Statement
The following table provides a list of all entities included in the Group’s consolidated financial
statements, prepared in accordance with the requirements of Section 295 (3A) of the Corporations Act
2001. It includes the required information for each entity that was part of the consolidated entity at
the end of the financial year.
Determination of Tax Residency
Section 295 (3A) of the Corporation Acts 2001 defines tax residency as having the meaning in the
Income Tax Assessment Act 1997. The determination of tax residency involves judgement as there
are currently several different interpretations that could be adopted, and which could give rise to
a different conclusion on residency. It should be noted that the definitions of ‘Australian resident’
and ‘foreign resident’ in the Income Tax Assessment Act 1997 are mutually exclusive. This means
that if an entity is an ‘Australian resident’ it cannot be a ‘foreign resident’ for the purposes of
disclosure in the CEDS.
In determining tax residency, the consolidated entity has applied the following interpretations:
Australian tax residency
The consolidated entity has applied current legislation and judicial precedent, including having
regard to the Tax Commissioner’s public guidance in Tax Ruling TR 2018/5.
Foreign tax residency
Where necessary, the consolidated entity has used independent tax advisers in foreign
jurisdictions to assist in determining tax residency and ensure compliance with applicable foreign
tax legislation.
Partnerships and Trusts
Australian tax law does not contain specific residency tests for partnerships and trusts. Generally,
these entities are taxed on a flow-through basis, so there is no need for a general residence test.
Some provisions treat trusts as residents for certain purposes, but this does not mean the trust
itself is an entity that is subject to tax.
Additional disclosures on the tax status of partnerships and trusts have been provided
where relevant.
Name of Entity
Type of
% of share
Country of
Residency
Entity
capital
incorporation
status
Kulripa Uranium Pty Ltd
Body Corporate
100%
Australia
Australian Resident
Astra Resources Pty Ltd
Body Corporate
100%
Australia
Australian Resident
Sol Jar Property Pty Ltd
Body Corporate
100%
Australia
Australian Resident
Eyre Peninsula Minerals Pty Ltd
Body Corporate
100%
Australia
Australian Resident
Ausmin Development Pty Ltd
Body Corporate
100%
Australia
Australian Resident
A N N U A L R E P O R T 2 0 2 4
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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 2024 and of its performance for the financial year ended on that date;
• there are reasonable grounds to believe that the Company will be able to pay its debts as and when
they become due and payable; and
• the information disclosed in the attached consolidated entity disclosure statement is true and
correct.
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 2024
Directors’ declaration
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Independence auditor’s report
Tel: +61 8 7324 6000
Fax: +61 8 7324 6111
www.bdo.com.au
BDO Centre
Level 7, 420 King William Street
Adelaide SA 5000
GPO Box 2018 Adelaide SA 5001
Australia
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF RENASCOR RESOURCES LIMITED
Report on the Audit of the Financial Report
Opinion
We have audited the financial report of Renascor Resources Limited (the Company) and its subsidiaries
(the Group), which comprises the consolidated statement of financial position as at 30 June 2024, 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 material accounting policy information, the consolidated entity
disclosure statement and the directors’ declaration.
In our opinion the accompanying financial report of the Group, is in accordance with the Corporations
Act 2001, including:
(i)
Giving a true and fair view of the Group’s financial position as at 30 June 2024 and of its
financial performance for the year ended on that date; and
(ii)
Complying with Australian Accounting Standards and the Corporations Regulations 2001.
Basis for opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under
those standards are further described in the Auditor’s responsibilities for the audit of the Financial
Report section of our report. We are independent of the Group in accordance with the Corporations
Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board’s
APES 110 Code of Ethics for Professional Accountants (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 Pty Ltd ABN 33 134 022 870 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 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.
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Independent auditor’s report 2024
Recoverability of development assets
Key audit matter
How the matter was addressed in our audit
As at 30 June 2024, the Group has
recognised a significant development
assets balance (Note 12).
The carrying value of the development
asset is required to be assessed for
impairment indicators on an annual basis.
This requires significant judgement to be
applied by management, and as a result
was considered to a key audit matter.
Our procedures, amongst others, included:
Assessing impairment indicators and the value-in-use
calculation prepared by management including the
appropriateness of significant judgements and data used;
Evaluating whether judgements made in selecting the
method, significant assumptions and data for developing the
discounted cash flow model gave rise to indicators of possible
bias;
Evaluating the reasonableness of disclosures made in the
financial report, including those regarding significant
assumptions, considering the requirements of Australian
Accounting Standards.
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 2024, 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:
a)
The financial report that gives a true and fair view in accordance with Australian Accounting
Standards and the Corporations Act 2001 and
b)
The consolidated entity disclosure statement that is true and correct in accordance with the
Corporations Act 2001, and
for such internal control as the directors determine is necessary to enable the preparation of:
i)
The financial report that gives a true and fair view and is free from material misstatement,
whether due to fraud or error; and
ii)
The consolidated entity disclosure statement that is true and correct and is free of 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.
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Independent auditor’s report 2024
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 30 to 41 of the directors’ report for the
year ended 30 June 2024.
In our opinion, the Remuneration Report of Renascor Resources Limited, for the year ended 30 June
2024, 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 Pty Ltd
Paul Gosnold
Director
Adelaide, 30 September 2024
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Shareholder’s information
The shareholder information set out below was applicable as at 17 September 2024.
Distribution of equitable securities
Analysis of number of equitable security holders by size of holding:
Ordinary shares
Number
% of total
of holders
shares issued
1 to 1,000
199
-
1,001 to 5,000
3,812
0.51
5,001 to 10,000
3,384
1.07
10,001 to 100,000
9,418
14.29
100,001 and over
3,207
84.13
20,020
100
Holding less than a marketable parcel
4,330
0.58
% of total
Number held
shares on issue
J P Morgan Nominees Australia Pty Limited
62,026,904
2.44
Citicorp Nominees Pty Limited
51,291,797
2.02
BNP Paribas Nominees Pty Ltd
44,848,445
1.76
Mr Richard Edward Keevers
44,282,842
1.74
Renascor Pty Ltd*
44,000,000
1.73
HSBC Custody Nominees (Australia) Limited
33,958,187
1.34
Sarwell Pty Ltd
31,550,000
1.24
David Christensen
24,460,518
0.96
BNP Paribas Nominees Pty Ltd
23,208,701
0.91
Ioof Investment Services Limited
22,348,867
0.88
Mr Adam Andrew MacDougall
17,875,000
0.70
Mr Kenneth Graham Miller
15,110,503
0.59
TSMB Pty Ltd
12,317,197
0.48
Netwealth Investments Limited
10,689,740
0.42
Mrs Tracey Ann Mezzino
10,630,000
0.42
Finclear Services Pty Ltd
10,345,307
0.41
Rise Capital Pty Ltd
9,900,000
0.39
Mr Matthew Neil Derbyshire
9,614,000
0.38
BNP Paribas Noms Pty Ltd
9,269,248
0.36
Brazil Farming Pty Ltd
9,000,000
0.35
2,541,829,671
19.90
Equity security holders
Twenty largest quoted equity security holders:
* Not associated with Renascor Resources Limited
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Unquoted equity securities
There are 5,180,073 Performance Rights expiring at various dates and held by 8 security holders.
Substantial holders
There are no substantial holders in the Company.
Voting rights
The voting rights attached to ordinary shares are set out below:
• 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
As at 17 September 2024 there are 393,868 ordinary shares on issue that are subject to voluntary escrow
until 27 February 2025.
There are no other classes of equity securities.
Shareholder’s information 2024
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Personal notes
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Corporate directory
Directors
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Richard Keevers
(Non-Executive Chairman)
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David Christensen
(Managing Director)
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Geoffrey McConachy
(Non-Executive Director)
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Stephen Bizzell
(Non-Executive Director)
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Kathryn Presser
(Non-Executive Director)
Company secretaries
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Pierre van der Merwe
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Jon Colquhoun
Registered office & principal place of business
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Level 5, 149 Flinders Street
Adelaide, South Australia 5000
Phone : + 61 8 8363 6989
Website: www.renascor.com.au
Share registry
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Link Market Services Limited
Level 21, 10 Eagle Street
Brisbane QLD 4000
Phone: + 61 2 8280 7454
Fax: + 61 2 9287 0303
Auditor
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BDO Audit Pty Ltd
Stock exchange listing
Renascor Resources Limited shares are listed on the:
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Australian Securities Exchange ASX code: RNU
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Frankfurt Stock Exchange
(Börse Frankfurt) FSE code: RU8
Business objectives
Renascor Resources is an Australian-based company
focused on the development of economically viable
mineral deposits within its extensive tenement portfolio
in key mineral provinces of South Australia. Its flagship
project is the Siviour Graphite and Battery Anode
Material Project in South Australia. The principal activity
of the Group during the financial year was mineral
exploration, development, 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
Website
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www.renascor.com.au
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