(Formerly Overland Resources Limited)
ABN 92 114 187 978
Annual Report
30 June 2018
Renegade Exploration Limited
CONTENTS
Corporate Directory
Operations Report
Tenement Schedule
Directors’ Report
Corporate Governance Statement
Statement of Profit or Loss and Other Comprehensive Income
Statement of Financial Position
Statement of Cash Flows
Statement of Changes in Equity
Notes to the Financial Statements
Directors’ Declaration
Auditor’s Independence Declaration
Independent Auditor’s Report
Additional ASX Information
Page No
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Renegade Exploration Limited
2018 Annual Report
CORPORATE DIRECTORY
Directors
Mr. Robert Kirtlan (Non-Executive Chairman)
Mr. Mark Wallace (Non-Executive Director)
Mr. Peter Voulgaris (Non-Executive Director)
CEO
Mr. Ben Vallerine
Company Secretary
Mr. Graeme Smith
Registered Office and Principal Place of Business
Suite 5, Level 1
12-20 Railway Road
Subiaco WA 6008
Australia
Telephone:
(+61 8) 9388 6020
Share Register
Computershare Investor Services Pty Ltd
Level 11
172 St Georges Terrace
Perth WA 6000 Australia
Telephone: 1300 850 505
International: (61 8) 9323 2000
Facsimile:
(61 8) 9323 2033
Stock Exchange Listing
Renegade Exploration Limited shares
are listed on the Australian Securities
Exchange, the home branch being Perth.
ASX Code: RNX
Auditors
Stantons International Audit and Consulting Pty Ltd
Level 2, 1 Walker Avenue
West Perth WA 6005
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YANDAL EAST GOLD PROJECT, WESTERN AUSTRALIA
During September 2017 the Company secured an option to acquire 75% of the Yandal East Gold Project (Yandal East) and
commenced exploration over the tenements. The Company conducted a variety of desktop work prior to a project wide gravity
survey followed by detailed target generation and the inaugural drilling program consisting of 285 aircore holes for 23,789m
during the year.
Yandal East is located 70km north-east of Wiluna, Western Australia and 25km east of the Jundee operation and comprises
352 km2 of tenure. The tenure covers 70 strike kilometres of under-explored, prospective greenstones within the world-class
Yandal Greenstone Belt with past production exceeding 10Moz. Access to Yandal East is via well maintained country roads
to Millrose Station Homestead and then via station tracks within the project area.
Figure 1.
Location and geology of the Yandal East Gold Project.
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Acquisition
The Company acquired an 18 month option to purchase a 75% interest in Yandal East by issuing 16,568,498 Renegade
shares and 16,568,498 Renegade options with an exercise price of $0.00754 to Zebina Minerals Pty Ltd (“Zebina”). In addition
the Company was required to spend $350,000 on exploration which it has now completed.
To exercise the option the Company must issue $400,000 in Renegade shares at a 10% discount to the 20 day volume
weighted average price before February 28, 2019. On exercise, the two parties will form a 75:25 exploration joint venture with
Zebina free carried until a decision to mine. On decision to mine Zebina must contribute its share pro-rata or dilute to a 1%
gross royalty.
Desktop and Reconnaissance Work
The Company completed a variety of desktop work as part of its due diligence and initial planning work at Yandal East.
Activities included database compilation and the re-processing of the publically available geophysics. Company
representatives completed a reconnaissance visit to the site in early September conducting rock chip sampling at Coralie
Jean. Assays returned up to 24 g/t Au with 5 of 12 samples taken exceeding 10 g/t Au. Initial rock chip sampling from surface
and small trenches in 2016 returned assays including 175.6 g/t Au, 115.1 g/t Au and 72.6 g/t Au, overall a total of 81 samples
have been taken over 1,000m of strike length with 55 of these samples occurring over 400m and averaging 17.3 g/t Au, as
announced to the market on 23rd October 2017. The Company was the successful recipient of a $150,000 grant under the
state governments Exploration Incentive Scheme.
Figure 2.
Plan showing the distribution of high grade rock chips at Coralie Jean
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Table 1.
Company rock chip sample results from Coralie Jean
Sample No.
Type
Easting
Northing
Gold (g/t)
R01
R02
R03
R04
R05
R06
R07
R08
R09
R10
R11
R12
Rock Chip
Rock Chip
Rock Chip
Rock Chip
Rock Chip
Rock Chip
Rock Chip
Rock Chip
Rock Chip
Rock Chip
Rock Chip
Rock Chip
275381.3
7118079
275374
7118086
24.8
2.62
275370.5
7118091
11.75
275366.4
7118104
275370.1
7118092
275357.2
7118122
275342.6
7118143
275548.1
7117654
275238.8
7118385
275260.2
7118298
275245
7118335
275620.1
7117402
24.1
21.8
15.5
0.25
0.09
0.11
0.04
0.03
0.02
Gravity Survey
During November the company engaged Atlas Geophysics to conduct a project wide gravity survey on a 1km x 1km grid. The
survey was carried out using a Scintrex CG5 digital gravity meter and Leica base and rover GNSS receivers. Gravity data
were acquired at each station with two readings at 20 second duration, with all loops controlled by multiple 60 second readings
at the control station. Loops were typically of 10-11 hour duration. Kinematic GNSS data were used to produce centimeter
level positions and elevations for each gravity station. A new control station was established at the base of operations at
Millrose Station and this was tied to the Australian Fundamental Gravity Network station at Wiluna A/S. All processing and
reduction of the gravity data were carried out using AGRIS software (Atlas Gravity Reduction and Interpretation Software) to
produce highly accurate Bouguer Anomaly values. The processed data were subsequently merged with existing regional data
prior to the generation of various images the company used in its target generation and geological interpretation work.
Target Generation
The Company in conjunction with Jon Hronsky (Hronsky) of Western Mining Services completed a detailed drill target
generation review resulting in the generation of 9 high priority targets within Yandal East covering approximately 32km of strike
length. The review of the mineralisation in the Yandal region indicated that the mineralisation at known deposits appears to
be controlled by a series of structures. At Jundee, mineralisation occurs at the intersection of the regional Nimary fault and a
suite of high angled cross cutting structures. Jundee has a high concentration of these important cross cutting structures.
Hronsky has identified the Celia Shear as a large regional structural control that extends for 70km within the Yandal East
Project, similar to the Nimary fault at Jundee. Historical drilling has confirmed known mineralisation along the Celia Shear with
Hronsky’s interpretation also confirming the existence of untested, high angled cross cutting structures at Yandal East. The
structures form the basis of the Company’s high priority targets and particularly the intersection of multiple structures. The
majority of these new targets are concealed by cover, therefore geochemistry is ineffective and potential mineralisation is also
concealed. The 2016 discovery of the high grade Coralie Jean prospect shows that these prospects can be easily overlooked,
the 2016 discovery was almost entirely concealed before a single sample of float returned 60 g/t Au. Coralie Jean is proximal
to the intersection of the Celia Shear and an interpreted cross cutting structure that has been interpreted from Jundee through
to the Coralie Jean area.
Regional structural features associated with mineralisation include;
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• A significant regional strike parallel shear/fault such as the Nimary fault at Jundee or the Celia Shear at Yandal East
• A concentration of high angle, late, brittle cross cutting structures
• Mineralisation is typically concentrated on one side of the shear, often interpreted to be hanging wall to the strike
parallel structure
• Mineralisation commonly concentrates along the cross cutting structures close to the regional shear
•
Inflexions in the orientation of the regional shear can play an important role in the accumulation of gold mineralisation
Figure 3.
Drilling targets generated on geology at Yandal East
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Inaugural Drill Program
The Company recently completed its inaugural, first pass aircore drilling program at its Yandal East Project. The program
consisted of 285 holes for 23,789m and tested five of the original nine high priority targets including Coralie Jean (Y1), Mizina
(Y2), Ward (Y3), Millrose Extension (Y5) and Millrose West (Y6).
The Company has identified significant mineralisation across multiple prospects with gold grades up to 10.55 g/t intersected
at Coralie Jean, 4.61 g/t at Ward and up to 2.56 g/t at Mizina with values greater than 1 g/t Au also returned from Mizina South
and Millrose Extension. Some of the more significant intercepts include;
•
•
•
•
•
•
•
•
•
4m @ 4.47 g/t Au from 12m; including
o
1m @ 10.55 g/t Au from12m
11.5m @ 0.80 g/t Au from 117m
10m @ 0.95 g/t Au from 78m; including
o
6m @ 1.4 g/t Au from 82m
4m @ 1.55 g/t Au from 61m
3m @ 2.05 g/t Au from 65m
7m @ 0.96 g/t Au from 21m; including
o
4m @ 1.41 g/t Au
4m @ 1.36 g/t Au from 64m
8m @ 0.62 g/t Au from 60m
16m @ 0.45 g/t Au from 92m
A vast amount of knowledge and data has been gathered as a result of the drilling program. A better understanding of the
geology and mineralisation in the target areas has generated five new high priority targets. The targets are contained within
the original, larger target areas that were previously developed in conjunction with Hronsky who has subsequently reviewed
the recent results and assisted in the assessment of the five new targets and recommended closer spaced drilling over these
targets. The Company is excited to be able to drill these new targets in its upcoming program. The new targets all contain
known mineralisation, structural and geological complexity and include Ward, Mizina North, Mizina South, Millrose Extension
and Coralie Jean South. The Company plans to drill at Ward, Mizina North and Millrose Extension in the upcoming quarter
with drilling to follow at the other targets thereafter.
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Coralie Jean Prospect
The Coralie Jean Prospect was the first target drilled as part of the inaugural drilling program and returned some very
encouraging results. Drilling has identified a 2.5km long gold-bearing system where the better results include;
•
•
•
•
4m @ 3.61 g/t Au from 12m; including
o
1m @ 10.55 g/t from 12m
7m @ 0.96 g/t Au from 21m
o
4m @ 1.41 g/t Au from 21m;
3m @ 2.05 g/t Au from 65m;
o
including 1m @ 5.19 g/t Au from 66m
2m @ 1.94 g/t Au from 71m, including
o
1m @ 3.44 g/t from 71m
The first pass program was broad spaced to cover a large area with the target extending for almost 4km. The four southern-
most lines were separated by greater than 500m each. Ultimately mineralised intersections were spread over a 2.5km gold
system with numerous intersections exceeding 0.5 g/t Au along this system (Figure 4 and Table 1). Coralie Jean sits in an
ideal structural location, immediately east of the large regional structure, known as the Celia Shear. The location of the Celia
Shear corresponded to a dramatic increase in the depth of weathering at Coralie Jean and the shear itself was commonly
anomalous in gold. The Celia Shear may be an important conduit for mineralising fluids in the area.
Figure 4: Selected drill intercepts from Coralie Jean
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Ward
At the Ward Prospect, the Company completed 42 holes for 3,477m at three separate targets within the greater Ward Prospect
as shown on Figure 5 below. One line was drilled south of previously known mineralisation, along the very edge of a salt lake
(YEAC0152 -154 & 164 – 166). Another three lines were drilled to infill a 680m gap where previous mineralisation had been
identified (YEAC0211 – 226). The remaining three lines were drilled to test a NE trending structure (YEAC0151, 155-158 &
227-241). The first four lines all intersected significant mineralisation, including;
•
•
•
•
•
10m @ 0.95 g/t Au from 78m including;
o
6m @ 1.40 g/t Au from 82m
4m @ 1.55 g/t Au from 61m
4m @ 1.36 g/t Au from 64m
1m @ 1.84 g/t Au from 38m
8m @ 0.62 g/t Au from 60m
Figure 5
Significant intercepts from drilling at Ward
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Mizina
Mizina South, within the greater Mizina prospect is one of the most exciting targets drilled in the recent program at Yandal
East. A total of 78 holes for 7,983m were drilled across the 7km of strike length that makes up the Mizina target. The 7km
strike length is between the known mineralised areas of Ward and Cowza along the same regional structure, the Celia Shear.
The area has an abundance of cross cutting structures, geological complications and disruptions in magnetic features. Only
one previous drill line within the entire 7km strike length has been completed, returning an intersection of 4m @ 2.54 g/t Au
and was never followed up. The 78 holes were spread across 6 lines spaced approximately 800m apart covering the
prospective 7km of strike length. Select better results, include;
•
•
•
•
11.5m @ 0.80g/t Au from 117m,
1m @ 2.56 g/t Au from 89m,
1m @ 1.34 g/t Au from 51m
6m @ 0.59 g/t Au from 71m
Figure 6.
Significant intercepts from drilling at Mizina
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Millrose Extension
The Company drilled 21 holes for 1,952m at Millrose Extension, the drilling consisted of three (3) lines separated by over 800m
of strike length, as shown in Figure 7. The northern most line intersected significant disseminated sulphides towards the base
of several holes before YEAC0246 intersected mineralisation, with 2m @ 0.99 g/t Au from 87m returned from quartz-
manganese veining within a felsic schist and 4m @ 0.31 g/t Au from 72m further up hole. The hole ended in mineralisation.
The next hole drilled encountered granite relatively shallow. This significant mineralisation is open at depth and there is 1.4km
of untested strike length to the north and south of this open-ended mineralisation (Figure 7).
Millrose Extension is one of the three targets the Company is planning to drill in its upcoming campaign. The area is
geologically interesting with sulphide-bearing mafic schists, felsic schists with quartz-manganese veining terminating against
an internal granite body. The granite may be an important control on the mineralising fluids, mineralisation elsewhere in the
region is located proximal to granite contacts, including the Millrose Deposit itself. The original target was chosen due to its
proximity to the Millrose Deposit, among other things, the Millrose Deposit is held by Bowlane Nominees (WA) Limited and
contains 309,000 oz of gold @ 2.4 g/t gold. Millrose Extension sits between the Celia Shear and the internal granite in an
area of structural complexity that includes an inflexion in the Celia Shear orientation and an abundance of high angle, cross
cutting faults that intersect the Celia Shear. Some of these intersecting structures may be associated with mineralisation at
the 300,000 oz, past-producing Gourdis-Vause deposits (see Figure 3).
Figure 7.
Drilling at the Millrose Extension Prospect
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Table 2.
Significant Intercepts from the Company’s inaugural drilling program
Hole Id
Sample Type
Prospect
Result
Comment
YEAC0001
Individual
Coralie Jean
4m @ 4.47 g/t Au from 12m
Individual
Coralie Jean
including
1m @ 10.55 g/t Au from
YEAC0002
Individual
Coralie Jean
7m @ 0.96 g/t Au from 21m
Individual
Coralie Jean
including
4m @ 1.41 g/t Au from 21m
YEAC0003
Individual
Coralie Jean
1m @ 0.81 g/t Au from 9m
YEAC0004
Individual
Coralie Jean
1m @ 0.49 g/t Au from 20m
YEAC0004
Individual
Coralie Jean
2m @ 0.64 g/t Au from 23m
YEAC0006
Individual
Coralie Jean
1m @ 0.35 g/t Au from 33m
YEAC0009
Individual
Coralie Jean
2m @ 0.36 g/t Au from 40m
YEAC0016
Individual
Coralie Jean
1m @ 0.39 g/t Au from 48m
YEAC0026
Individual
Coralie Jean
1m @ 0.3 g/t Au from 26m
YEAC0056
Individual
Coralie Jean
1m @ 0.32 g/t Au from 75m
YEAC0056
Individual
Coralie Jean
4m @ 0.75 g/t Au from 87m
YEAC0056
Individual
Coralie Jean
1m @ 0.35 g/t Au from 95m
YEAC0061
Individual
Coralie Jean
1m @ 0.36 g/t Au from 113m
YEAC0064
Individual
Coralie Jean
1m @ 0.34 g/t Au from 17m
YEAC0065
Individual
Coralie Jean
2m @ 0.6 g/t Au from 42m
Individual
Coralie Jean
including
1m @ 0.84 g/t Au from 42m
YEAC0076
Individual
Coralie Jean
1m @ 0.33 g/t Au from 100m
YEAC0087
Individual
Coralie Jean
1m @ 2.46 g/t Au from 12m
YEAC0088
Individual
Coralie Jean
1m @ 0.55 g/t Au from 59m
YEAC0100
Individual
Coralie Jean
1m @ 1.54 g/t Au from 63m
YEAC0100
Individual
Coralie Jean
1m @ 0.39 g/t Au from 81m
YEAC0107
Individual
Coralie Jean
2m @ 1.94 g/t Au from 71m
Individual
Coralie Jean
including
1m @ 3.44 g/t Au from 71m
YEAC0108
Individual
Coralie Jean
3m @ 0.79 g/t Au from 65m
YEAC0108
Individual
Coralie Jean
2m @ 0.88 g/t Au from 90m
YEAC0118
Individual
Coralie Jean
2m @ 0.37 g/t Au from 40m
YEAC0118
Individual
Coralie Jean
3m @ 2.05 g/t Au from 65m
Individual
Coralie Jean
including
1m @ 5.19 g/t Au from 65m
YEAC0120
Individual
Coralie Jean
1m @ 0.33 g/t Au from 45m
YEAC0127
Individual
Mizina South
5m @ 0.4 g/t Au from 88m
Individual
Mizina South
including
1m @ 0.54 g/t Au from 88m
Individual
Mizina South
including
1m @ 0.60 g/t Au from 91m
YEAC0128
Individual
Mizina South
1m @ 0.34 g/t Au from 75m
YEAC0131
Individual
Mizina South
1m @ 1.34 g/t Au from 51m
Individual
Mizina South
Individual
Mizina South
Individual
Mizina South
Individual
Mizina South
Individual
Mizina South
Individual
Mizina South
and
and
and
and
and
and
1m @ 0.37 g/t Au from 83m
1m @ 2.56 g/t Au from 89m
2m @ 0.38 g/t Au from 94m
1m @ 0.52 g/t Au from 110m
1m @ 1.8 g/t Au from 117m
8.5m @ 0.89 g/t Au from 120m
Ended in mineralisation
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Individual
Mizina South
or
11.5m @ 0.80 g/t Au from 117m
Individual
Mizina South
including
1m @ 2.74 g/t Au from 120m
YEAC0132
Individual
Mizina South
4m @ 0.36 g/t Au from 38m
Individual
Mizina South
including
1m @ 0.68 g/t Au from 41m
YEAC0140
Individual
Mizina South
3m @ 0.42 g/t Au from 101m
Individual
Mizina South
including
1m @ 0.72 g/t Au from 101m
YEAC0142
Individual
Mizina South
1m @ 0.87 g/t Au from 116m
YEAC0144
Individual
Mizina South
2m @ 0.4 g/t Au from 82m
YEAC0149
Individual
Mizina South
1m @ 0.44 g/t Au from 62m
YEAC0152
Individual
YEAC0152
Individual
YEAC0152
Individual
YEAC0154
Individual
YEAC0154
Individual
YEAC0158
Individual
Ward
Ward
Ward
Ward
Ward
Ward
1m @ 1.84 g/t Au from 38m
1m @ 0.59 g/t Au from 42m
1m @ 0.59 g/t Au from 50m
4m @ 1.55 g/t Au from 61m
1m @ 0.38 g/t Au from 87m
1m @ 0.56 g/t Au from 94m
YEAC0163
Individual
Mizina South
3m @ 0.41 g/t Au from 75m
Individual
including
1m @ 0.78 g/t Au from 77m
YEAC0164
Individual
Ward
10m @ 0.95 g/t Au from 78m
Individual
Individual
YEAC0166
Individual
Ward
Ward
including
6m @ 1.40 g/t Au from 82m
5m @ 0.31 g/t Au from 104m
3m @ 0.4 g/t Au from 145m
Ended in mineralisation
YEAC0176
Individual
Mizina North
3m @ 0.4 g/t Au from 62m
Individual
Mizina North
Including
1m @ 0.53 g/t Au from 63m
Individual
Mizina North
and
1m @ 0.63 g/t Au from 69m
YEAC0177
Individual
Mizina North
2m @ 0.38 g/t Au from 85m
Individual
Mizina North
Including
1m @ 0.50 g/t Au from 86m
YEAC0179
Individual
Mizina North
1m @ 0.31 g/t Au from 46m
Individual
Mizina North
Individual
Mizina North
and
and
2m @ 0.61 g/t Au from 63m
1m @ 0.31 g/t Au from 77m
YEAC0180
Individual
Mizina North
1m @ 0.85 g/t Au from 60m
YEAC0181
Individual
Mizina North
1m @ 0.44 g/t Au from 35m
YEAC0187
Individual
Mizina North
1m @ 0.82 g/t Au from 71m
YEAC0188
Individual
Mizina North
6m @ 0.59 g/t Au from 71m
YEAC0201
Individual
Mizina North
1m @ 0.41 g/t Au from 160m
YEAC0212
Composite
YEAC0215
Composite
Composite
YEAC0218
Composite
YEAC0221
Composite
Composite
YEAC0222
Composite
Ward
Ward
Ward
Ward
Ward
Ward
Ward
16m @ 0.45 g/t Au from 92m
4m @ 0.49 g/t Au from 86m
and
3m @ 0.71 g/t Au from 114m
Ended in mineralisation
8m @ 0.62 g/t Au from 60m
4m @ 1.36 g/t Au from 64m
and
8m @ 0.5 g/t Au from 80m
4m @ 0.38 g/t Au from 60m
YEAC0246
Composite
Millrose Ext
4m @ 0.31 g/t Au from 72m
Individual
Millrose Ext
and
2m @ 0.99 g/t Au from 87m
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YUKON BASE METAL PROJECT, CANADA
During 2018 the Company continued to assess strategies to achieve the best outcome for the Yukon Base Metal Project and
has received enquiries throughout the year and remains engaged with interested parties.
History
Mineralisation at the Andrew Zinc Deposit, located in the Selwyn Basin of the Yukon Territory, Canada, was discovered by a
prospector in 1996. The prospector staked claims over the area and optioned them to Noranda Inc. in 2000. In 2001, thick,
high-grade zinc mineralisation was intersected in Noranda’s maiden drilling program. A second drilling programme followed in
2002. Despite mineralisation remaining open in all directions, Noranda relinquished its rights in 2003.
In January 2007 the Company secured an option (from the prospector) to earn a 90% interest in the Yukon Base Metal Project.
Following positive results from further exploration, the Company exercised that option in July 2007.
The original Project comprised 493 Mineral Claims covering 95 km2 over and around the Andrew Zinc Deposit. The Company
has since expanded its land position so the Project now comprises 1554 Mineral Claims covering approximately 305km2 (see
Figure 9).
Figure 8. Yukon Base Metal Project
Figure 9. Yukon Base Metal Project land position,
location map
comprising the Junction Project (100%), the Selous
Project (90%) and the Riddell Project (100%).
Renegade’s Activities
Since 2007 the Company has completed 350 diamond drill holes for over 40,000 metres; discovered three separate zinc
deposits; and defined a 2012 JORC Code compliant Measured, Indicated and Inferred Resource of 12.6 million tonnes at
5.3% Zn and 0.9% Pb (see Table 3).
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Table 3. JORC Code 2012 compliant mineral resource estimate for the Yukon Base Metal Project
Deposit
Measured
Indicated
Inferred
Total
Tonnes
Zinc
Lead
Tonnes
Zinc
Lead
Tonnes
Zinc
Lead
Tonnes
Zinc
Lead
(%)
(%)
(%)
(%)
(%)
(%)
(%)
(%)
Andrew
1,730,000
5.3
1.7
4,730,000
1,670,000
6.0
4.8
1.6
0.0
190,000
3,880,000
360,000
4.9
4.7
4.0
4.6
1.6
0.0
0.2
0.1
6,650,000
5,550,000
360,000
12,560,000
5.8
4.7
4.0
5.3
1.6
0.0
0.2
0.9
1,730,000
5.3
1.7
6,400,000
5.8
1.1
4,430,000
Darcy
Darin
Total
Note:
Cut off of 2% zinc and 1000mRL applied based on economic pit modelling
There is considerable potential to increase the resource base at the Yukon Base Metal Project. Mineralisation remains open
at depth and along strike at the Andrew, Darcy and Darin Deposits. Numerous, sizeable, undrilled, coherent soil geochemistry
anomalies are evident elsewhere at the Project, including at the Junction Project area where extensive soil anomalies have
been delineated (see Figure 10). Further exploration could result in the discovery of additional resources.
Figure 10.
Zinc in soil geochemistry results from samples collected over the entire Yukon Base Metal Project
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McCLEERY COPPER-COBALT, YUKON, CANADA
During the year the Company divested the McCleery Copper-Cobalt project via the sale of its wholly owned subsidiary
Overland Resources (BC) Limited to Rafaella Resources Limited (Rafaella). Post year end, in total the Company received
$50,000 in cash and $100,000 in shares (500,000 shares) in Rafaella which listed on the ASX during July 2018.
TROJAN GOLD PROJECT, WESTERN AUSTRALIA
The Company terminated its option to acquire the Trojan Gold Project during October 2017, there were no further payments
required.
CORPORATE
In September 2017, the Company executed a binding agreement with Zebina Minerals Pty Ltd (Vendor) whereby Renegade
has an option to acquire 75% of the Project on or before 28th February 2019.
In October 2017, the Company terminated its option-to-acquire the Trojan Gold Project from Westgold Resources Limited
(ASX:WGX) and its subsidiaries.
In November 2017, the Company accepted the resignation of Mr. Hugh Bresser, non-executive director, and appointed of Mr.
Peter Voulgaris as non-executive director.
In January 2018, the Company executed a binding term sheet with Rafaella Resources Ltd for the sale of its McCleery Copper-
Cobalt project in Yukon, Canada, for the value of $100,000 in Rafaella shares.
In March 2018, the Company completed a $2 million placement.
Shareholders approved the change of name from “Overland Resources Limited” to “Renegade Exploration Limited” at a
General Meeting held on 26 April 2018. The Company’s ASX code has changed from “OVR” to “RNX”.
Renegade Exploration Limited
15
2018 Annual Report
Tenement Schedule
Canadian Projects
Claim Names
A
AMB
AMBfr
Andrew
Atlas
B
Bridge
Clear
Dasha
Data
Link
Myschka
Ozzie
Riddell
Scott
Shack
Sophia
TA
Name
E53/1547
E53/1548
E53/1726
E53/1835
E53/1970
E53/1971**
Yukon Base Metal Project
Australian Projects
Yandal East Gold Project**
Numbers
1-8, 57-104
1-12, 17, 18, 25,
81-84, 149-150
13-16, 19-24, 26-
48, 51-80, 85-104
49-50, 105-112
115-116, 123-148
117
118-122, 151-162
1-2
3-10
1-6
53, 55, 57, 59, 61,
63, 65-74, 79-100,
105-126
*127-194
1-8, 11-16, 19-32
*1-25
1-6
*1-320
*1-231
1-12, 21-32, 41-48,
57-70, 77-90
13-16, 19, 20, 33-
40, 47, 49-56, 71-
76, 91-96
17
1-32
*1-80
1-2, 35-36
3-34
*1-5
1-4
*1-2
*3-332
Description
Exploration
Licence
Exploration
Licence
Exploration
Licence
Exploration
Licence
Exploration
Licence Application
Exploration
Licence
Expiry Date
15/02/2027
15/02/2032
15/02/2033
15/02/2031
15/02/2031
15/02/2033
15/02/2030
15/02/2031
15/02/2034
31/07/2020
15/02/2025
15/02/2022
15/02/2030
15/02/2022
15/02/2028
15/02/2022
15/02/2022
15/02/2026
15/02/2027
15/02/2028
15/02/2030
01/02/2022
15/02/2029
15/02/2023
15/02/2022
15/02/2024
14/07/2022
15/02/2022
Expiry Date
07/09/2021
07/09/2021
13/10/2018
12/05/2021
N/A
06/05/2023
Tenement Schedule as per September 18, 2018
*The Company has a 100% interest in these specific claims and 90% in the remaining claims at the Yukon Base Metal Project
**The Company has an option to acquire a 75% interest in the tenements of the Yandal East Gold Project. The Company may
exercise that option on or before February 28, 2019.
Renegade Exploration Limited
16
2018 Annual Report
Directors’ Report
The Directors present their report for Renegade Exploration Limited (formerly Overland Resources Limited) (“Renegade” or
“the Company”) and its subsidiaries (“the Group”) for the year ended 30 June 2018.
DIRECTORS
The names, qualifications and experience of the Directors in office during the year and until the date of this report are as
follows. Directors were in office for this entire period unless otherwise stated.
Mr. Robert Kirtlan
Chairman
Mr Kirtlan had a background in accounting and finance prior to working for major investment banks in Sydney and New York
focusing on global mining. He has been involved in the mining industry for approximately 25 years arranging equity and debt
financing for junior and major mining companies. More lately he has taken active roles in the financing, management and
development of exploration opportunities across a broad spectrum of commodities in various countries.
Mr. Kirtlan is a Director of RMG Limited (appointed 29 April 2011), Vault Intelligence Limited (appointed 30 November 2011),
and Currie Rose Resources Inc (appointed 27 October 2015. He was a Director of East Africa Resources Limited (appointed
20 November 2013, resigned 1 September 2015), Decimal Software Limited (appointed 22 April 20012, resigned 15 June
2016) and Homeland Uranium Inc (appointed 1 February 2012, resigned 30 November 2014).
Mr. Peter Voulgaris (appointed 24 November 2017)
Non Executive Director
Mr Voulgaris has over 20 years of international mine operations, project management and development experience. His
operational experience includes roles with Mount Isa Mines’ Hilton/George Fisher lead-zinc-silver, Placer Dome’s Osborne
copper-gold and Granny Smith gold, and Newmont’s Callie gold mine.
Mr Voulgaris acquired significant mine development and project management experience as Technical Services Manager at
Ivanhoe’s world class Oyu Tolgoi copper-gold project in Mongolia and as Expansion Study Manager for MMG at the Sepon
copper-gold mine in Laos.
Mr Voulgaris is the former Vice President of Business Development for the TSX listed Minco Group of Companies and is
currently Principal of Elysium Mining Ltd, consulting to TSX listed developers, miners, and is project manager for the Pegmont
Project for Vendetta Mining (TSX: VTT).
Mr. Hugh Bresser (resigned 24 November 2017)
Non Executive Director
Mr. Bresser has more than 20 years experience working in the resources industry. He holds an honours degree in Economic
and Metalliferous Geology from James Cook University and an MBA from the Mt Eliza Business School, Melbourne.
Mr. Bresser spent more than ten years working with BHP Billiton, generating and evaluating exploration projects in a variety
of commodities within Australia, Asia, Southern Africa and South America. He has held senior positions within BHP Billiton’s
Global Exploration Division, including three years in Exploration Global Strategy, Business Planning and Risk Management.
Mr. Bresser was also employed by BHP Billiton Iron Ore Group in a senior role, working on supply chain optimisation and
new capital implementation. Mr. Bresser has previously held technical positions with Pancontinental Mining Ltd, Renison
Goldfields Consolidated and Goldfields Ltd.
Mr. Bresser was a Director of Birimian Limited (appointed 25 May 2011, resigned 22 March 2017).
Renegade Exploration Limited
17
2018 Annual Report
Directors’ Report
Mr. Mark Wallace
Non Executive Director
Mr Wallace is a finance professional with a background in economics and finance. He has spent almost 20 years working for
both major and boutique Investment Banks specialising in the Global Materials and Energy sectors. He spent the bulk of his
career in London and Sydney identifying, advising and financing early stage and pre development mining and energy
companies.
Mr. Wallace has not held any other Directorships of listed companies during the past three years.
Mr. Ben Vallerine
Chief Executive Officer
Mr Vallerine has over 15 years global industry experience as a geologist and manager. Mr Vallerine holds a Bachelor of
Science, with honours in Economic Geology from the University of Tasmania (CODES).
Mr Vallerine has worked with WA gold miners Harmony Gold and New Hampton Goldfields and iron ore giant Rio Tinto. Mr
Vallerine has extensive North American experience and resided in the USA for 5 years and managed all of the in-country
activities for junior explorer Black Range Minerals. Mr Vallerine also managed activities in Canada and Alaska for Coventry
Resources.
COMPANY SECRETARY
Mr. Graeme Smith (appointed 01 July 2018)
Mr Smith is the principal of Wembley Corporate Services Pty Ltd which provide corporate secretarial, CFO and governance
services. Mr Smith has over 25 years experience in company secretarial work
Ms. Paige Exley (appointed 29 November 2017, resigned 30 June 2018)
Ms Exley is a Finance and Corporate Governance professional with over 15 years of experience in the resources, mining
services, biotechnology, professional services, not-for-profit, food, wine and liquor industries.
Mr. Lloyd Flint (appointed 1 September 2017, resigned 29 November 2017)
Ms. Beverley Nichols (resigned 1 September 2017)
INTERESTS IN THE SECURITIES OF THE COMPANY
As at the date of this report, the interests of the Directors in the securities of the Company were:
Director
Ordinary Shares
Options over
R. Kirtlan
P. Voulgaris
M. Wallace
Ordinary Shares
7,000,000
15,000,000
-
-
48,100,000
15,000,000
RESULTS OF OPERATIONS
The Group’s net loss after taxation attributable to the members of Renegade Exploration Limited for the year was $866,890
(2017: loss of $662,782).
DIVIDENDS
No dividend was paid or declared by the Group in the year and up to the date of this report.
Renegade Exploration Limited
18
2018 Annual Report
Directors’ Report
CORPORATE STRUCTURE
Renegade Exploration Limited is a company limited by shares that is incorporated and domiciled in Australia.
NATURE OF OPERATIONS AND PRINCIPAL ACTIVITIES
During the financial year, the Group’s principal activity was mineral exploration. The Group currently holds a base metals
project in Canada and a gold project in Western Australia. There have been no changes in the principal activities from prior
years.
EMPLOYEES
The Group had no employees at 30 June 2018 (2017: no employees).
REVIEW OF OPERATIONS
Refer to the Operations Report preceding this Directors’ Report.
SIGNIFICANT EVENTS AFTER THE REPORTING DATE
The sale of McCleery Project was completed in July 2018. The Company has received 500,000 Ordinary Shares of Rafaella
Resources Ltd.
Other than as disclosed elsewhere within this report, there were no other subsequent events after the reporting date.
LIKELY DEVELOPMENTS AND EXPECTED RESULTS OF OPERATIONS
The Group will continue to carry out its business plan by:
•
•
•
•
•
exploration of the Yandal East Gold Project;
continuing to explore and consider development and other strategic options for the Yukon Base Metal Project;
pursuing the acquisition of additional projects with synergy to those currently in the Company’s asset portfolio;
continuing to meet its commitments relating to exploration tenements and carrying out further exploration, permitting
activities and project development; and
prudently managing the Group’s cash to be able to take advantage of any future opportunities that may arise to add
value to the business.
ENVIRONMENTAL REGULATION AND PERFORMANCE
The Group carries out operations that are subject to environmental regulations under both Federal, Territorial and Provincial
legislation in Canada and Australia. The Group has formal procedures in place to ensure regulations are adhered to. The
Group is not aware of any breaches in relation to environmental matters.
SHARE OPTIONS
As at the date of this report, there were 56,568,498 options over ordinary shares (56,568,498 options at the reporting date).
The details of the options at the reporting date are as follows:
Number
Exercise Price
Expiry Date
10,000,000
16,568,498
15,000,000
15,000,000
$0.007
20 April 2019
$0.00754
19 January 2020
$0.025
$0.035
31 March 2021
31 March 2021
No option holder has any right under the options to participate in any other share issue of the Company or any other entity.
During the financial year 46,568,498 options were issued and no options expired. No options were exercised during the
financial year. Since the end of the financial year, no options have been issued or exercised.
Renegade Exploration Limited
19
2018 Annual Report
Directors’ Report
INDEMNIFICATION AND INSURANCE OF DIRECTORS AND OFFICERS
The Company has made agreements indemnifying all the Directors and Officers of the Company against all losses or liabilities
incurred by each Director or Officer in their capacity as Directors or Officers of the Company to the extent permitted by the
Corporations Act 2001. The indemnification specifically excludes wilful acts of negligence. The Company paid insurance
premiums in respect of Directors’ and Officers’ Liability Insurance contracts for current Officers of the Company, including
Officers of the Company’s controlled entities. The liabilities insured are damages and legal costs that may be incurred in
defending civil or criminal proceedings that may be brought against the Officers in their capacity as officers of entities in the
Group. The total amount of insurance premiums paid has not been disclosed due to confidentiality reasons.
DIRECTORS’ MEETINGS
During the financial year, in addition to regular informal Board discussions, the number of Director’s meetings held during the
year, and the number of meetings attended by each Director were as follows:
Name
Number of Meetings Eligible
Number of Meetings
to Attend
Attended
Mr. Robert Kirtlan
Mr. Peter Voulgaris
Mr. Hugh Bresser
Mr. Mark Wallace
3
-
2
3
3
1
2
3
PROCEEDINGS ON BEHALF OF COMPANY
No person has applied for leave of court to bring proceedings on behalf of the Company or 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 any part of those
proceedings. The Company was not a party to any such proceedings during the year.
CORPORATE GOVERNANCE
In recognising the need for the highest standards of corporate behaviour and accountability, the Directors of the Company
support and have adhered to the principles of sound corporate governance. The Board recognises the recommendations of
the Australian Securities Exchange Corporate Governance Council, and considers that the Company is in compliance with
those guidelines to the extent possible, which are of importance to the commercial operation of a junior listed resources
Company. The Company’s Corporate Governance Statement and disclosures are available on the Company’s website.
AUDITOR’S INDEPENDENCE AND NON-AUDIT SERVICES
Section 307C of the Corporations Act 2001 requires the Group’s auditors to provide the Directors of Renegade Exploration
Limited with an Independence Declaration in relation to the audit of the full-year financial report. A copy of that declaration is
included at page 64 of this report. There were no non-audit services provided by the company’s auditor during the year ended
30 June 2018.
REMUNERATION REPORT (AUDITED)
This report outlines the remuneration arrangements in place for key management personnel of Renegade Exploration Limited
in accordance with the requirements of the Corporations Act 2001 and its Regulations. For the purpose of this report, Key
Management Personnel (KMP) are defined as those persons having authority and responsibility for planning, directing and
controlling the major activities of the Company and the Group, directly or indirectly, including any director (whether executive
or otherwise) of the Parent entity.
Renegade Exploration Limited
20
2018 Annual Report
Directors’ Report
Details of Key Management Personnel
Mr. Robert Kirtlan
Chairman
Mr. Hugh Bresser
Non-Executive Director – resigned 24 November 2017
Mr. Peter Voulgaris
Non-Executive Director – appointed 24 November 2017
Mr. Mark Wallace
Non-Executive Director
Mr. Ben Vallerine
Chief Executive Officer
Ms. Beverley Nichols
Company Secretary/Chief Financial Officer – resigned 31 August 2017
Remuneration Policy
The Board is responsible for determining and reviewing compensation arrangements for the Directors and management. The
Board assesses the appropriateness of the nature and amount of emoluments of such officers on a periodic basis by reference
to relevant employment market conditions with the overall objective of ensuring maximum stakeholder benefit from the
retention of a high quality board and executive team. The Company does not link the nature and amount of the emoluments
of such officers to the Group’s financial or operational performance. The lack of a performance link at this time is not considered
to have a negative impact on retaining and motivating Directors.
As part of its Corporate Governance Policies and Procedures, the Board has adopted a formal Remuneration Committee
Charter. Due to the current size of the Company and number of Directors, the Board has elected not to create a separate
Remuneration Committee but has instead decided to undertake the function of the Committee as a full Board under the
guidance of the formal charter. The Company has no policy on executives and directors entering into contracts to hedge their
exposure to options or shares granted as part of their remuneration package.
The rewards for Directors’ have no set or pre-determined performance conditions or key performance indicators as part of
their remuneration due to the current nature of the business operations. The Board determines appropriate levels of
performance rewards as and when they consider rewards are warranted.
The table below shows the performance of the Group as measured by earnings / (loss) per share for the previous five years:
As at 30 June
Loss per share (cents)
Share price at reporting date
2018
(0.12)
1.1
2017
(0.17)
0.7
2016
(0.15)
0.7
2015
(16.04)
0.7
2014
(0.46)
0.7
(cents)
Details of the nature and amount of each element of the emoluments of each Director and Executive of the Company for the
financial year are as follows:
2018
Base Directors Consulting
Payments
Employment
Short term
Share Based
Post
Superannuation
Total
Director
Mr. Robert Kirtlan
Mr. Peter Voulgaris*
Mr. Hugh Bresser*
Mr. Mark Wallace
Executive
Mr. Ben Vallerine
Ms. Beverley Nichols*
Salary
Fees
$
-
-
-
-
-
-
$
-
12,000
7,200
-
-
-
Fees
$
-
-
-
-
$
81,7501
-
81,7501
145,000
24,000
(90,000)2
-
$
-
-
-
-
-
-
$
81,750
12,000
7,200
81,750
55,000
24,000
169,000
*Mr. Voulgaris was appointed on 24 November 2017, Mr. Bresser resigned on 24 November 2017, Ms.Nichols resigned on 31 August 2017.
2018 Annual Report
Renegade Exploration Limited
261,700
73,500
19,200
21
-
-
Directors’ Report
1During the year, Mr. Robert Kirtlan was issued 15 million Options and Mr. Mark Wallace was issued 15 million Options pursuant to the EIP.
The purpose of the issue of Options to the Directors is to assist in their reward and retention. The grant of the Options forms part of the
Company’s remuneration strategy for Directors, in lieu of additional cash remuneration.
2Reversal of accrued performance shares to Ben Vallerine in year ended 30 June 2017.
2017
Base Directors Consulting
Payments
Employment
Short term
Share Based
Post
Salary
Fees
Fees
- Options Superannuation
Total
Director
Mr. Robert Kirtlan*
Mr. Michael Haynes*
Mr. Hugh Bresser
Mr. Mark Wallace*
Mr. Scott Robertson*
Executive
Mr. Ben Vallerine*
Ms. Beverley Nichols
$
-
-
-
-
-
-
-
$
-
42,000
18,000
-
11,437
$
-
-
900
-
-
$
-
-
-
-
-
-
-
75,521
72,000
210,0001
-
$
-
-
-
-
-
-
-
$
-
42,000
18,900
-
11,437
285,521
72,000
-
71,437
148,421
*Mr. Kirtlan was appointed on 23 May 2017, Mr. Haynes resigned on 23 June 2017, Mr. Wallace was appointed on 25 June 2017, Mr.
Robertson resigned on 19 May 2017 and Mr. Vallerine was appointed on 6 December 2016
1During the year, CEO Mr. Ben Vallerine was issued 10 million ordinary shares for introducing the Trojan Project. The Company has agreed
to issue a further 15 million performance shares if the Company exercises it’s option over the Trojan Project. The 10 million ordinary shares
were issued on 17 March 2017 valued at $120,000. The company has not yet issued the performance shares however the liability has been
accrued aggregating to $90,000 based on the share price at the date of agreement. The Performance shares immediately convert to fully paid
ordinary shares (on a 1:1 basis) in the event Renegade exercises its option to purchase the Trojan Gold Project.
210,000
429,858
-
Share options issued as part of the remuneration to Directors are not subject to a performance hurdle as these options are
issued as a form of retention bonus and incentive to contribute to the creation of shareholder wealth.
The terms and conditions of each grant of options affecting remuneration in previous, this or future reporting periods of KMP
are as follows:
30 June 2018
Grant
Date
Grant
Expiry
Fair Value
Exercise
Total
Vested
%
Number
Date/Last
per
Price per
Value
Vested
Exercise
Option at
Option
Granted
Date
Grant
Date
$
R. Kirtlan*
26/04/18
7,500,000
31/03/21
$0.0058
$0.025
$43,500 7,500,000
100%
26/04/18
7,500,000
31/03/21
$0.0051
$0.035
$38,250 7,500,000
100%
H. Bresser
P. Voulgaris
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
M. Wallace*
26/04/18
7,500,000
31/03/21
$0.0058
$0.025
$43,500 7,500,000
100%
26/04/18
7,500,000
31/03/21
$0.0051
$0.035
$38,250 7,500,000
100%
B. Vallerine
B. Nichols
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
*Options were granted for no consideration with 100% vesting immediately.
There were no alterations to the terms and conditions of options granted as remuneration since their grant date. There were
no forfeitures during the period. No options were exercised during the year ended 30 June 2018 (2017: Nil).
Options were granted as part of a remuneration package. On resignation, any unvested options will be forfeited.
Renegade Exploration Limited
22
2018 Annual Report
Directors’ Report
Shareholdings of Key Management Personnel
The number of shares in the Company held during the financial year by Key Management Personnel of Renegade
Exploration Limited, including their personally related parties, is set out below.
30 June 2018
Mr. Robert Kirtlan
Mr. Hugh Bresser*
Mr. Peter Voulgaris*
Mr. Mark Wallace
Mr. Ben Vallerine
Ms. Beverley Nichols*
30 June 2017
Mr. Robert Kirtlan**
Mr. Michael Haynes**
Mr. Hugh Bresser
Mr. Mark Wallace**
Mr. Scott Robertson**
Mr. Ben Vallerine**
Balance at the
Granted during
Exercised during
Other changes
Balance at the
start of the year
the year as
the year
during the year
end of the year
compensation
7,000,000
4,877,620
-
43,600,000
13,333,334
666,667
-
6,714,707
4,877,620
-
-
-
-
-
-
-
-
-
-
-
-
-
-
10,000,000
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
7,000,000
4,877,6202
-
4,500,000
48,100,000
-
-
13,333,3343
666,6672
7,000,000
7,000,000
2,138,235
8,852,9422
-
4,877,620
43,600,000
43,600,000
-
-
3,333,334
13,333,3343
Ms. Beverley Nichols
*Mr. Voulgaris was appointed on 24 November 2017, Mr. Bresser resigned on 24 November 2017, Ms.Nichols resigned on 31 August 2017,
**Mr. Kirtlan was appointed on 23 May 2017, Mr. Haynes resigned on 23 June 2017, Mr. Wallace was appointed on 25 June 2017, Mr.
Robertson resigned on 19 May 2017 and Mr. Vallerine was appointed on 6 December 2016
2 At date of resignation
3 5,000,000 shares voluntary escrowed until 16 March 2018
666,667
666,667
-
-
-
Option holdings of Key Management Personnel
The numbers of options over ordinary shares in the company held during the financial year by Key Management Personnel of
Renegade Exploration Limited and of the group, including their personally related parties, are set out below:
30 June 2018
Mr. Robert Kirtlan
Mr. Hugh Bresser
Mr. Peter Voulgaris
Mr. Mark Wallace
Mr. Ben Vallerine
Ms. Beverley Nichols
30 June 2017
Mr. Robert Kirtlan
Mr. Michael Haynes2
Mr. Hugh Bresser
Mr. Mark Wallace
Mr. Ben Vallerine
Ms. Beverley Nichols
2 At date of resignation.
Balance at
Granted during
Exercised
Expired
Balance at
% vested
the start of
the year as
during the
during the
the end of
the year
compensation
year
year
the year
-
-
-
-
-
-
-
1,925,000
3,925,000
-
-
-
15,000,000
-
-
15,000,000
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
- (1,925,000)
- (3,925,000)
-
-
-
-
-
-
- 15,000,000
100%
-
-
-
-
-
-
- 15,000,000
100%
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Renegade Exploration Limited
23
2018 Annual Report
Directors’ Report
Executive Directors and Key Management Personnel
There are no executive directors.
The Executive’s remuneration is stipulated in a consulting services agreement between the Company and the Executive’s
related entity. A summary of the key terms of the agreement are outlined below:
The Chief Executive Officer, Mr. Ben Vallerine, consults to the Company and is remunerated on a monthly basis at a rate of
$12,083 per month (excluding GST). Mr. Vallerine’s services may be terminated by giving one month written notice.
Non-Executive Directors
Mr. Peter Voulgaris is paid a base directors fee of $24,000 per annum
No directors’ fee is drawn by Directors Robert Kirtlan and Mark Wallace.
The aggregate remuneration for non-executive Directors fees has been set at an amount not to exceed $250,000 per annum.
This amount may only be increased with the approval of Shareholders at a general meeting.
END OF REMUNERATION REPORT
Signed on behalf of the board in accordance with a resolution of the Directors.
Robert Kirtlan
Chairman
28 September 2018
Competent Person Statement
The information in this report that relates to Mineral Resources at the Yukon Base Metal Project is based on information
compiled by Mr Peter Ball who is a Member of the Australasian Institute of Mining and Metallurgy. Mr Ball is the Manager of
Data Geo. Mr Ball has sufficient experience which is relevant to the style of mineralisation and type of deposit under
consideration and to the activity which he is undertaking 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’. Mr Ball consents to the
inclusion in the report of the matters based on his information in the form and context in which it appears.
The information in this announcement that relates to exploration results for the Yandal East Gold Project and the Yukon Base
Metal Project, is based on information compiled by Mr Ben Vallerine, who is a consultant to the Company. Mr Vallerine is a
Member of the Australian Institute of Geoscientists. Mr Vallerine has sufficient experience which is relevant to the style of
mineralisation and type of deposit under consideration and the activity he is undertaking to qualify as a Competent Person as
defined in the 2012 Edition of the Australasian Code for Reporting of Exploration Results (JORC Code). Mr Vallerine consents
to the inclusion in the report of the matters based on the information in the form and context in which it appears.
Caution Regarding Forward Looking Statements
This announcement contains forward looking statements which involve a number of risks and uncertainties.These forward
looking statements are expressed in good faith and believed to have a reasonable basis. These statements reflect current
expectations, intentions or strategies regarding the future and assumptions based on currently available information. Should
one or more risks or uncertainties materialise, or should underlying assumptions prove incorrect, actual results may vary from
the expectations, intentions and strategies described in this announcement. The forward looking statements are made as at
the date of this announcement and the Company disclaims any intent or obligation to update publicly such forward looking
statements, whether as the result of new information, future events or results or otherwise
Renegade Exploration Limited
24
2018 Annual Report
Corporate Governance Statement
To ensure the Company operates effectively and in the best interests of shareholders, having regard to the nature of the
Company’s activities and its size, the Board has adopted the revised Corporate Governance Principles and Recommendations
3rd Edition issued by the ASX Corporate Governance Council. The Company’s Corporate Governance Statement and
Appendix 4G are available on the Company’s website: www.renegadeexploration.com
Renegade Exploration Limited
25
2018 Annual Report
Renegade Exploration Limited
Statement of Profit or Loss and Other Comprehensive Income
for the year ended 30 June 2018
Notes
Consolidated
Revenues from operations
Interest revenue
Other income
Profit on sale of asset
Revenue
Consultants and directors fees
Share based payment
Audit and tax fees
Insurance
Accounting fees
Computer and website expenses
Rent and outgoings
Depreciation
Travel and accommodation
Listing and registry fees
Legal expenses
Exploration expenditure written off
Other expenses
2018
$
7,217
45,455
3,060
55,732
2017
$
3,899
-
-
3,899
(92,804)
(163,500)
(203,377)
(210,000)
(34,225)
(11,911)
(65,062)
(21,572)
(31,870)
(20)
(26,269)
(53,904)
(39,857)
(355,631)
(25,386)
(10,151)
(74,231)
(2,433)
(63,722)
-
(5,885)
(39,059)
(2,680)
-
5
(25,997)
(29,757)
Loss from operations before income tax
(866,890)
(662,782)
Income tax expense
6
-
-
Loss from operations after tax attributable to members
of the parent entity
(866,890)
(662,782)
Other comprehensive profit / loss net of tax
Items that may be reclassified subsequently to profit or loss
Foreign currency translation
15
21,323
(54,787)
Other comprehensive profit / loss for the year
21,323
(54,787)
Total comprehensive loss for the year attributable to
members of the parent entity
(845,567)
(717,569)
Loss per share:
Basic loss per share (cents per share)
Diluted loss per share (cents per share)
19
19
(0.15)
(0.15)
(0.17)
(0.17)
The above statement of profit or loss and other comprehensive income should be read in conjunction with the accompanying notes.
Renegade Exploration Limited
26
2018 Annual Report
Renegade Exploration Limited
Statement of Financial Position as at 30 June 2018
CURRENT ASSETS
Cash and cash equivalents
Other receivables and prepayments
Assets classified as held for sale
Notes
Consolidated
2018
$
2017
$
16(a)
7
2,280,396
1,130,659
76,093
17,168
53,965
-
TOTAL CURRENT ASSETS
2,373,657
1,184,624
NON CURRENT ASSETS
Property, plant and equipment
Other receivables
Deferred exploration and evaluation expenditure
8
10
11
158,576
228,330
171,446
225,515
2,260,374
1,871,201
TOTAL NON CURRENT ASSETS
2,647,280
2,268,162
TOTAL ASSETS
5,020,937
3,452,786
CURRENT LIABILITIES
Trade and other payables
Liabilities classified as held for sale
12(a)
347,146
3,917
152,138
-
TOTAL CURRENT LIABILITIES
351,063
152,138
NON CURRENT LIABILITIES
Provisions
12(b)
228,330
225,515
TOTAL NON CURRENT LIABILITIES
228,330
225,515
TOTAL LIABILITIES
NET ASSETS
EQUITY
Contributed equity
Reserves
Accumulated losses
TOTAL EQUITY
579,393
377,653
4,441,544
3,075,133
13
15
14
44,012,408
42,063,930
3,567,868
3,283,045
(43,138,732)
(42,271,842)
4,441,544
3,075,133
The above statement of financial position should be read in conjunction with the accompanying notes.
Renegade Exploration Limited
27
2018 Annual Report
Renegade Exploration Limited
Statement of Cash Flows for the year ended 30 June 2018
CASH FLOWS FROM OPERATING ACTIVITIES
Payments to suppliers and employees
Interest received
Other income
NET CASH FLOWS (USED IN) OPERATING
Notes
Consolidated
2018
$
2017
$
(225,987)
(419,365)
7,218
45,455
3,899
-
ACTIVITIES
16(b)
(173,314)
(415,466)
CASH FLOWS FROM INVESTING ACTIVITIES
Payments for exploration & evaluation
(526,044)
(260,180)
Payment for PPE
Cash proceeds from sale of PPE
NET CASH FLOWS (USED IN) INVESTING
(2,369)
3,060
-
-
ACTIVITIES
(525,353)
(260,180)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issue of shares
Transaction costs of issue of shares
NET CASH FLOWS PROVIDED BY FINANCING
2,000,000
1,256,454
(151,596)
(110,327)
ACTIVITIES
1,848,404
1,146,127
Net increase in cash and cash equivalents
Cash and cash equivalents at beginning of year
CASH AND CASH EQUIVALENTS AT END OF
1,149,737
1,130,659
470,481
660,178
YEAR
16(a)
2,280,396
1,130,659
Non Cash Investing / Financing Activity
The Company issued 16,568,498 shares valued at $100,000 and 16,568,498 options at a deemed value of $100,000 for the
option to acquire 75% of the Yandal East Gold Project.
The above statement of cash flows should be read in conjunction with the accompanying notes.
Renegade Exploration Limited
28
2018 Annual Report
Renegade Exploration Limited
Statement of Changes in Equity for the year ended 30 June 2018
Consolidated
At 1 July 2017
(Loss) for the year
Other comprehensive (loss)
Total comprehensive (loss) for the year
Transactions with owners in their capacity as owners
Share issue
Transaction costs on share issue
Share based payment
At 30 June 2018
Consolidated
At 1 July 2016
(Loss) for the year
Other comprehensive (loss)
Total comprehensive (loss) for the year
Transactions with owners in their capacity as owners
Share issue
Transaction costs on share issue
At 30 June 2017
Issued
Capital
$
Accumulated
Losses
$
Share
Based
Payment
Reserves
$
Foreign
Currency
Translation
Reserves
$
Total
$
42,063,930
(42,271,842)
3,855,028
(571,983)
3,075,133
-
-
-
(866,890)
-
(866,890)
2,100,074
(151,596)
-
-
-
-
-
-
-
-
-
263,500
-
(866,890)
21,323
21,323
21,323
(845,567)
-
-
-
2,100,074
(151,596)
263,500
44,012,408
(43,138,732)
4,118,528
(550,660)
4,441,544
Issued
Capital
$
Accumulated
Losses
$
Share
Based
Payment
Reserves
$
Foreign
Currency
Translation
Reserves
$
Total
$
40,584,296
(41,609,060)
3,855,028
(517,196)
2,313,068
-
-
-
(662,782)
-
(662,782)
1,589,961
(110,327)
-
-
-
-
-
-
-
-
(662,782)
(54,787)
(54,787)
(54,787)
(717,569)
-
-
1,589,961
(110,327)
42,063,930
(42,271,842)
3,855,028
(571,983)
3,075,133
The above statement of changes in equity should be read in conjunction with the accompanying notes.
Renegade Exploration Limited
29
2018 Annual Report
Renegade Exploration Limited
Notes to the financial statements for the financial year ended 30 June 2018
1. Corporate Information
The financial report of Renegade Exploration Limited (“Renegade” or “the Company”) and its subsidiaries (“the Group”) for
the year ended 30 June 2018 was authorised for issue in accordance with a resolution of the Directors on 28 September
2018.
Renegade Exploration Limited is a public company limited by shares incorporated and domiciled in Australia whose shares
are publicly traded on the Australian Securities Exchange. It is a “for profit” entity.
The nature of the operations and principal activities of the Group are described in the Directors’ report.
2. Going Concern
The financial statements have been prepared on a going concern basis which the directors believe to be appropriate. The
directors are confident that the Group will be able to maintain sufficient levels of working capital to continue as a going
concern and continue to pay its debts as and when they fall due.
For the year ended 30 June 2018, the Group incurred a loss before tax of $866,890 (2017: loss of $662,782) and incurred
net cash inflows of $1,149,737 (2017: $470,481). At 30 June 2018, the Group had net current assets of $2,022,594 (2017:
$1,032,486).
The financial report has been prepared on the going concern basis, which contemplates continuity of normal business
activities and realisation of assets and settlement of liabilities in the ordinary course of business.
The Group’s ability to continue as a going concern is dependent upon it maintaining sufficient funds for its operations and
commitments. The Directors continue to be focused on meeting the Group’s business objectives and is mindful of the funding
requirements to meet these objectives. The Directors consider the basis of going concern to be appropriate for the following
reasons:
•
•
•
•
•
The current cash of the Group relative to its fixed and discretionary commitments;
The contingent nature of certain of the Group’s project expenditure commitments;
The ability of the Group to terminate certain agreements without any further on-going obligation beyond what has
accrued up to the date of termination;
The underlying prospects for the Group to raise funds from the capital markets; and
The fact that future exploration and evaluation expenditure are generally discretionary in nature (ie. at the discretion
of the Directors having regard to an assessment of the progress of works undertaken to date and the prospects for
the same). Subject to meeting certain expenditure commitments, further exploration activities may be slowed or
suspended as part of the management of the Group’s working capital.
The Directors are confident that the Group can continue as a going concern and as such are of the opinion that the financial
report has been appropriately prepared on a going concern basis.
Should the Group be unable to undertake the initiatives disclosed above, there is uncertainty which may cast doubt as to
whether or not the Group will be able to continue as a going concern and whether it will realise its assets and extinguish its
liabilities in the normal course of business and at the amounts stated in the financial statements.
The financial statements do not include any adjustments relating to the recoverability and classification of recorded asset
amounts nor to the amounts and classification of liabilities that might be necessary should the Group not continue as a going
concern.
Renegade Exploration Limited
30
2018 Annual Report
Renegade Exploration Limited
Notes to the financial statements for the financial year ended 30 June 2018
3. Summary of Significant Accounting Policies
Basis of Preparation
The financial report is a general purpose financial report, which has been prepared in accordance with the requirements of
the Corporations Act 2001, Australian Accounting Standards and other authoritative pronouncements of the Australian
Accounting Standards Board. The financial report has also been prepared on a historical cost basis.
The financial report is presented in Australian dollars.
During the current period the Group modified the Consolidated Statement of Profit or Loss and Other Comprehensive Income
to further disaggregate and clarify the nature of costs incurred. Comparative amounts were reclassified for consistency,
which resulted in no impact on prior period total expenses.
(a) Compliance Statement
The financial report complies with Australian Accounting Standards as issued by the Australian Accounting Standards Board
and International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board.
(b) New accounting standards and interpretations
New and revised accounting requirement applicable to the current reporting period
The Group has considered the implications of new and amended Accounting Standards but determined that their application
to the financial statements is either not relevant or not material.
New accounting standards and interpretations issued but not yet effective
The following applicable accounting standards and interpretations have been issued or amended but are not yet effective.
The Company has not elected to early adopt any new Standards or Interpretations. The adoption of the Standards or
Interpretations are not expected to have material impact on the financial statements of the Group.
Renegade Exploration Limited
31
2018 Annual Report
Application date
of Standard*
1 January 2018
Application
date for
Group*
1 July 2018
Renegade Exploration Limited
Notes to the financial statements for the financial year ended 30 June 2018
Reference
Title
Summary
AASB 139
Financial
Instruments:
Recognition
and
Measurement
AASB 9
Financial
Instruments
(December
2014)
[Also refer to
AASB 2013-9
and
AASB 2014-1
below]
AASB 9 introduces new requirements for the
classification and measurement of financial
assets and liabilities and includes a forward-
looking ‘expected loss’ impairment model and a
substantially-changed approach to hedge
accounting.
These requirements improve and simplify the
approach for classification and measurement of
financial assets compared with the requirements
of AASB 139. The main changes are:
(a) Financial assets that are debt instruments
will be classified based on (1) the objective of
the entity’s business model for managing
the financial assets; and (2) the
characteristics of the contractual cash flows.
(b) Allows an irrevocable election on initial
recognition to present gains and losses on
investments in equity instruments that are not
held for trading in other comprehensive
income (instead of in profit or loss).
Dividends in respect of these investments
that are a return on investment can be
recognised in profit or loss and there is no
impairment or recycling on disposal of the
instrument.
(c) Introduces a ‘fair value through other
comprehensive income’ measurement
category for particular simple debt
instruments.
(d) Financial assets can be designated and
measured at fair value through profit or loss
at initial recognition if doing so eliminates or
significantly reduces a measurement or
recognition inconsistency that would arise
from measuring assets or liabilities, or
recognising the gains and losses on them, on
different bases.
(e) Where the fair value option is used for
financial liabilities the change in fair value is
to be accounted for as follows:
• The change attributable to changes in
credit risk are presented in other
comprehensive income (OCI); and
• The remaining change is presented in
profit or loss.
If this approach creates or enlarges an
accounting mismatch in the profit or loss, the
effect of the changes in credit risk are also
presented in profit or loss. Otherwise, the
following requirements have generally been
carried forward unchanged from AASB 139
into AASB 9:
• Classification and measurement of
financial liabilities; and
• Derecognition requirements for financial
assets and liabilities.
Renegade Exploration Limited
32
2018 Annual Report
Renegade Exploration Limited
Notes to the financial statements for the financial year ended 30 June 2018
Reference
Title
Summary
Application date
of Standard*
Application
date for
Group*
1 January 2018
1 July 2018
AASB 15
Revenue from
Contracts with
Customers
AASB 9 requirements regarding hedge
accounting represent a substantial overhaul of
hedge accounting that will enable entities to
better reflect their risk management activities in
the financial statements.
Furthermore, AASB 9 introduces a new
impairment model based on expected credit
losses. The model makes use of more forward-
looking information and applies to all financial
instruments that are subject to impairment
accounting.
AASB 15 Revenue from Contracts with
Customers replaces the existing revenue
recognition standards AASB 111 Construction
Contracts, AASB 118 Revenue and related
Interpretations
AASB 15 specifies the accounting treatment for
revenue arising from contracts with customers
(except for contracts within the scope of other
accounting standards such as leases or financial
instruments).The core principle of AASB 15 is
that an entity recognises revenue to depict the
transfer of promised goods or services to
customers in an amount that reflects the
consideration to which the entity expects to be
entitled in exchange for those goods or services.
An entity recognises revenue in accordance with
that core principle by applying the following
steps:
(a) Step 1: Identify the contract(s) with a
customer
(b) Step 2: Identify the performance obligations
in the contract
(c) Step 3: Determine the transaction price
(d) Step 4: Allocate the transaction price to the
performance obligations in the contract
(e) Step 5: Recognise revenue when (or as)
the entity satisfies a performance
obligation.
AASB 2014-5 incorporates the consequential
amendments to a number Australian Accounting
Standards (including Interpretations) arising from
the issuance of AASB 15.
Renegade Exploration Limited
33
2018 Annual Report
Application date
of Standard*
Application
date for
Group*
1 January 2019
1 July 2019
Renegade Exploration Limited
Notes to the financial statements for the financial year ended 30 June 2018
Reference
Title
Summary
AASB 16
Leases
AASB 16 replaces AASB 117 Leases and
related interpretations. The key features of
AASB 16 are as follows:
Lessee accounting
• Lessees are required to recognise assets
and liabilities for all leases with a term of
more than 12 months, unless the underlying
asset is of low value.
• A lessee measures right-of-use assets
similarly to other non-financial assets and
lease liabilities similarly to other financial
liabilities.
• Assets and liabilities arising from a lease
are initially measured on a present value
basis. The measurement includes non-
cancellable lease payments (including
inflation-linked payments), and also
includes payments to be made in optional
periods if the lessee is reasonably certain to
exercise an option to extend the lease, or
not to exercise an option to terminate the
lease.
• AASB 16 contains disclosure requirements
for lessees.
Lessor accounting
• AASB 16 substantially carries forward the
lessor accounting requirements in AASB
117. Accordingly, a lessor continues to
classify its leases as operating leases or
finance leases, and to account for those two
types of leases differently.
• AASB 16 also requires enhanced
disclosures to be provided by lessors that
will improve information disclosed about a
lessor’s risk exposure, particularly to
residual value risk.
The new standard will be effective for annual
periods beginning on or after 1 January 2019.
Early application is permitted, provided the new
revenue standard, AASB 15 Revenue from
Contracts with Customers, has been applied, or
is applied at the same date as AASB 16.
Renegade Exploration Limited
34
2018 Annual Report
Application date
of Standard*
Application
date for
Group*
1 January 2022
1 July 2022
1 January 2018
1 July 2018
Renegade Exploration Limited
Notes to the financial statements for the financial year ended 30 June 2018
Reference
Title
Summary
AASB 2014-
10
AASB 2016-5
Amendments
to
Australian
Accounting
Standards –
Sale or
Contribution of
Assets
between an
Investor and
its Associate
or Joint
Venture
Amendments
to Australian
Accounting
Standards –
Classification
and
Measurement
of Share-based
Payment
Transactions
The amendments clarify that a full gain or loss is
recognised when a transfer to an associate or
joint venture involves a business as defined in
AASB 3 Business Combinations. Any gain or
loss resulting from the sale or contribution of
assets that does not constitute a business,
however, is recognised only to the extent of
unrelated investor’s interests in the associate or
joint venture.
AASB 2015-10 deferred the mandatory effective
date (application date) of AASB 2014-10 so that
the amendments were required to be applied for
annual reporting periods beginning on or after 1
January 2018 instead of 1 January 2016. AASB
2017-5 further defers the effective date of the
amendments made in AASB 2014-10 to periods
beginning on or after 1 January 2022.
This Standard amends AASB 2 Share-based
Payments, clarifying how to account for certain
types of share-based payment transactions.
The amendments provide requirements on the
accounting for:
• The effects of vesting and non-vesting
conditions on the measurement of cash-
settled share-based payments
• Share-based payment transactions with a
net settlement feature for withholding tax
obligations
A modification to the terms and conditions of a
share-based payment that changes the
classification of the transaction from cash-settled
to equity-settled.
*Designates the beginning of the applicable annual reporting period unless otherwise stated
(c)
Basis of Consolidation
The consolidated financial statements incorporate all of the assets, liabilities and results of the parent (Renegade Exploration
Limited) and all of the subsidiaries. Subsidiaries are entities the parent controls. The parent controls an entity when it 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 over the entity. A list of the subsidiaries is provided in Note 9.
The assets, liabilities and results of all subsidiaries are fully consolidated into the financial statements of the Group from the
date on which control is obtained by the Group. The consolidation of a subsidiary is discontinued from the date that control
ceases. Intercompany transactions, balances and unrealised gains or losses on transactions between Group entities are
fully eliminated on consolidation. Accounting policies of subsidiaries have been changed and adjustments made where
necessary to ensure uniformity of the accounting policies adopted by the Group.
Equity interests in a subsidiary not attributable, directly or indirectly, to the Group are presented as “non controlling interests".
The Group initially recognises non-controlling interests that are present ownership interests in subsidiaries and are entitled
to a proportionate share of the subsidiary's net assets on liquidation at either fair value or at the non-controlling interests'
proportionate share of the subsidiary's net assets. Subsequent to initial recognition, non-controlling interests are attributed
Renegade Exploration Limited
35
2018 Annual Report
Renegade Exploration Limited
Notes to the financial statements for the financial year ended 30 June 2018
their share of profit or loss and each component of other comprehensive income. Non-controlling interests are shown
separately within the equity section of the statement of financial position and statement of comprehensive income.
(d)
Income tax
Current tax assets and liabilities for the current and prior periods are measured at the amount expected to be recovered from
or paid to the taxation authorities. The tax rates and tax laws used to compute the amount are those that are enacted or
substantively enacted by the balance date.
Deferred income tax is provided for on all temporary differences at balance date between the tax base of assets and liabilities
and their carrying amounts for financial reporting purposes.
No deferred income tax will be recognised from the initial recognition of goodwill or of an asset or liability, excluding a
business combination, where there is no effect on accounting or taxable profit or loss.
No deferred income tax will be recognised in respect of temporary differences associated with investments in subsidiaries if
the timing of the reversal of the temporary difference can be controlled and it is probable that the temporary differences will
not reverse in the near future.
Deferred tax is calculated at the tax rates that are expected to apply to the period when the asset is realised or liability is
settled. Deferred tax is credited to Profit or Loss except where it relates to items that may be credited directly to equity, in
which case the deferred tax is adjusted directly against equity.
Deferred income tax assets are recognised for all deductible temporary differences, carry forward of unused tax assets and
unused tax losses to the extent that it is probable that future tax profits will be available against which deductible temporary
differences can be utilised.
The amount of benefits brought to account or which may be realised in the future is based on tax rates (and tax laws) that
have been enacted or substantially enacted at the balance date and the anticipation that the Group will derive sufficient
future assessable income to enable the benefit to be realised and comply with the conditions of deductibility imposed by the
law. The carrying amount of deferred tax assets is reviewed at each balance date and only recognised to the extent that
sufficient future assessable income is expected to be obtained.
Income taxes relating to items recognised directly in equity are recognised in equity and not in the Profit or Loss.
(e)
Cash and cash equivalents
Cash and cash equivalents in the Statement of Financial Position include cash on hand, deposits held at call with banks and
other short term highly liquid investments with original maturities of three months or less. Bank overdrafts are shown as
current liabilities in the Statement of Financial Position. For the purpose of the Statement of Cash Flows, cash and cash
equivalents consist of cash and cash equivalents as described above, net of outstanding bank overdrafts.
(f)
Trade and other receivables
Trade receivables, which generally have 30-90 day terms, are recognised and carried at original invoice amount less an
allowance for any uncollectible amounts.
Collectability of trade receivables is reviewed on an ongoing basis. Individual debts that are known to be uncollectible are
written off when identified. An impairment provision is recognised when there is objective evidence that the Group will not
Renegade Exploration Limited
36
2018 Annual Report
Renegade Exploration Limited
Notes to the financial statements for the financial year ended 30 June 2018
be able to collect the receivable. Financial difficulties of the debtor, default payments or debts more than 60 days overdue
are considered objective evidence of impairment. The amount of the impairment loss is the receivable carrying amount
compared to the present value of estimated future cash flows, discounted at the original effective interest rate.
(g)
Property, plant and equipment
Each class of property, plant and equipment is carried at cost less, where applicable, any accumulated depreciation and
impairment losses.
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. Repairs and maintenance expenditure is charged to Profit or Loss during the financial period in which it
is incurred.
Depreciation
The depreciable amount of most of the fixed assets are depreciated on a diminishing balance method and some of the fixed
assets are depreciated on a straight line basis over their useful lives to the Group commencing from the time the asset is
held ready for use.
The depreciation rates used for each class of depreciable assets are:
Class of Fixed Asset
Plant and equipment
Computer Equipment
Furniture and Fittings
Camp Buildings
Depreciation Rate
10% to 25%
45%
20
10%
The assets' residual values and useful lives are reviewed, and adjusted if appropriate, at each reporting date.
Derecognition
Additions of property, plant and equipment is derecognised upon disposal or when no further future economic benefits are
expected from its use or disposal.
Gains and losses on disposals are determined by comparing proceeds with the carrying amount. These gains and losses
are recognised in the Profit or Loss.
Impairment
Carrying values of plant and equipment are reviewed at each balance date to determine whether there are any objective
indicators of impairment that may indicate the carrying values may be impaired.
Where an asset does not generate cash flows that are largely independent it is assigned to a cash generating unit and the
recoverable amount test applied to the cash generating unit as a whole.
Recoverable amount is determined as the greater of fair value less costs to sell and value in use. The assessment of value
in use considers the present value of future cash flows discounted using an appropriate pre-tax discount rate reflecting the
current market assessments of the time value of money and risks specific to the asset. If the carrying value of the asset is
determined to be in excess of its recoverable amount, the asset or cash generating unit is written down to its recoverable
amount.
Renegade Exploration Limited
37
2018 Annual Report
Renegade Exploration Limited
Notes to the financial statements for the financial year ended 30 June 2018
(h)
Exploration expenditure
Exploration and evaluation expenditure incurred by or on behalf of the Group is accumulated separately for each area of
interest. Such expenditure comprises net direct costs and an appropriate portion of related overhead expenditure, but does
not include general overheads or administrative expenditure not having a specific nexus with a particular area of interest.
Each area of interest is limited to a size related to a known or probable mineral resource capable of supporting a mining
operation.
Exploration and evaluation expenditure for each area of interest is carried forward as an asset provided that one of the
following conditions is met:
•
•
such costs are expected to be recouped through successful development and exploitation of the area of
interest or, alternatively, by its sale; or
exploration and evaluation activities in the area of interest have not yet reached a stage which permits a
reasonable assessment of the existence or otherwise of economically recoverable reserves, and active
and significant operations in relation to the area are continuing.
Expenditure which fails to meet the conditions outlined above is written off, furthermore, the directors regularly review the
carrying value of exploration and evaluation expenditure and make write downs if the values are not expected to be
recoverable.
Identifiable exploration assets acquired are recognised as assets at their cost of acquisition, as determined by the
requirements of AASB 6 Exploration for and Evaluation of Mineral Resources. Exploration assets acquired are reassessed
on a regular basis and these costs are carried forward provided that at least one of the conditions referred to in AASB 6 is
met.
Exploration and evaluation expenditure incurred subsequent to acquisition in respect of an exploration asset acquired, is
accounted for in accordance with the policy outlined above for exploration expenditure incurred by or on behalf of the entity.
Acquired exploration assets are not written down below acquisition cost until such time as the acquisition cost is not expected
to be recovered.
When an area of interest is abandoned, any expenditure carried forward in respect of that area is written off.
Expenditure is not carried forward in respect of any area of interest/mineral resource unless the Group’s rights of tenure to
that area of interest are current.
(i)
Impairment of non-financial assets
The Group assesses at each reporting date whether there is an indication that an asset may be impaired. If any such
indication exists, or when annual impairment testing for an asset is required, the Group makes an estimate of the asset’s
recoverable amount. An asset’s recoverable amount is the higher of its fair value less costs to sell and its value in use and
is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those
from other assets or categories of assets and the asset's value in use cannot be estimated to be close to its fair value. In
such cases the asset is tested for impairment as part of the cash generating unit to which it belongs. When the carrying
amount of an asset or cash-generating unit exceeds its recoverable amount, the asset or cash-generating unit is considered
impaired and is written down to its recoverable amount.
Renegade Exploration Limited
38
2018 Annual Report
Renegade Exploration Limited
Notes to the financial statements for the financial year ended 30 June 2018
In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate
that reflects current market assessments of the time value of money and the risks specific to the asset. Impairment losses
relating to continuing operations are recognised in those expense categories consistent with the function of the impaired
asset unless the asset is carried at revalued amount (in which case the impairment loss is treated as a revaluation decrease).
An assessment is also made at each reporting date as to whether there is any indication that previously recognised
impairment losses may no longer exist or may have decreased. If such indication exists, the recoverable amount is estimated.
A previously recognised impairment loss is reversed only if there has been a change in the estimates used to determine the
asset’s recoverable amount since the last impairment loss was recognised. If that is the case the carrying amount of the
asset is increased to its recoverable amount. That increased amount cannot exceed the carrying amount that would have
been determined, net of depreciation, had no impairment loss been recognised for the asset in prior years. Such reversal is
recognised in profit or loss unless the asset is carried at revalued amount, in which case the reversal is treated as a
revaluation increase.
After such a reversal the depreciation charge is adjusted in future periods to allocate the asset’s revised carrying amount,
less any residual value, on a systematic basis over its remaining useful life.
(j)
Trade and other payables
Liabilities for trade creditors and other amounts are measured at amortised cost, which is the fair value of the consideration
to be paid in the future for goods and services received that are unpaid, whether or not billed to the Group.
(k)
Contributed equity
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. Incremental costs directly attributable to the issue of new
shares or options, or for the acquisition of a business, are included in the cost of the acquisition as part of the purchase
consideration.
(l)
Revenue
Revenue is recognised and measured by the fair value of the consideration received or receivable to the extent that it is
probable that the economic benefits will flow to the Group and the revenue is capable of being reliably measured. The
following specific recognition criteria must also be met before revenue is recognised:
Interest income
Revenue is recognised as the interest accrues (using the effective interest method, which is the rate that exactly discounts
estimated future cash receipts through the expected life of the financial instrument) to the net carrying amount of the financial
asset.
(m)
Earnings per share
Basic earnings per share
Basic earnings per share is calculated by dividing the profit or loss attributable to equity holders of the Group, excluding any
costs of servicing equity other than dividends, by the weighted average number of ordinary shares, adjusted for any bonus
elements.
Diluted earnings per share
Diluted earnings per share is calculated as net profit or loss attributable to members of the Group, adjusted for:
•
costs of servicing equity (other than dividends);
Renegade Exploration Limited
39
2018 Annual Report
Renegade Exploration Limited
Notes to the financial statements for the financial year ended 30 June 2018
•
the after tax effect of dividends and interest associated with dilutive potential ordinary shares that
have been recognised as expenses; and
•
other non-discretionary changes in revenues or expenses during the period that would result from
the dilution of potential ordinary shares.
divided by the weighted average number of ordinary shares and dilutive potential ordinary shares, adjusted for any bonus
elements.
(n)
Share based payment transactions
The Group provides benefits to individuals acting as, and providing services similar to employees (including Directors) of the
Group in the form of share based payment transactions, whereby individuals render services in exchange for shares or rights
over shares (‘equity settled transactions’).
There is currently an Employee Share Option Plan (ESOP) in place, which provides benefits to Directors and individuals
providing services similar to those provided by an employee.
The cost of these equity settled transactions with employees is measured by reference to the fair value at the date at which
they are granted. The fair value is determined by using the Black Scholes formula taking into account the terms and
conditions upon which the instruments were granted, as discussed in note 24.
In valuing equity settled transactions, no account is taken of any performance conditions, other than conditions linked to the
price of the shares of Renegade Exploration Limited (‘market conditions’).
The cost of the 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 employees 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 balance date. No adjustment is made
for the likelihood of the market performance conditions being met as the effect of these conditions is included in the
determination of fair value at grant date. The profit or loss charge or credit for a period represents the movement in cumulative
expense recognised at the beginning and end of the period.
No expense is recognised for awards that do not ultimately vest, except for awards where vesting is conditional upon a
market condition.
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 the modification.
Where an equity settled award is cancelled, it is treated as if it had vested on the date of the cancellation, and any expense
not yet recognised for the award is recognised immediately. However if a new award is substituted for the cancelled award,
and designated as a replacement award on the date that it is granted, the cancelled and new award are treated as if they
were a modification of the original award, as described in the previous paragraph.
The dilutive effect, if any, of outstanding options is reflected in the computation of loss per share (see note 19).
Renegade Exploration Limited
40
2018 Annual Report
Renegade Exploration Limited
Notes to the financial statements for the financial year ended 30 June 2018
(o)
Goods and Services Tax
Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of GST incurred is not
recoverable from the Australian Tax Office. In these circumstances the GST is recognised as part of the cost of acquisition
of the asset or as part of an item of the expense. Receivables and payables in the Statement of Financial Position are shown
inclusive of GST.
The net amount of GST recoverable from, or payable to, the Australian Tax Office is included as part of receivables or
payables in the Statement of Financial Position.
Cash flows are presented in the Statement of Cash Flows on a gross basis, except for the GST component of investing and
financing activities, which is receivable from or payable to the ATO, are disclosed as operating cash flows.
(p)
Investments in controlled entities
All investments are initially recognised at cost, being the fair value of the consideration given and including acquisition
charges associated with the investment. Subsequent to the initial measurement, investments in controlled entities are carried
at cost less accumulated impairment losses.
Foreign currency translation
(q)
Functional and presentation currency
Items included in the financial statements of each entity within the Group are measured using the currency of the primary
economic environment in which the entity operates (‘the functional currency’). The functional and presentation currency of
Renegade Exploration Limited is Australian dollars. The functional currency of the overseas subsidiary is Canadian dollars.
Transactions and balances
Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of
the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the
translation at year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised
in the profit or loss.
Group entities
The results and financial position of all the Group entities (none of which has the currency of a hyperinflationary economy)
that have a functional currency different from the presentation currency are translated into the presentation currency as
follows:
•
•
•
•
assets and liabilities are translated at the closing rate at the date of that Statement of Financial
Position;
income and expenses are translated at average exchange rates (unless this is not a reasonable
approximation of the rates prevailing on the transaction dates, in which case income and expenses
are translated at the dates of the transactions);
retained earnings are translated at the exchange rates prevailing at date of transaction; and
all resulting exchange differences are recognised as a separate component of equity.
On consolidation, exchange differences arising from the translation of any net investment in foreign entities, and of
borrowings and other financial instruments designated as hedges of such investments, are taken to shareholders’ equity.
When a foreign operation is sold the exchange differences relating to that entity are recognised in the profit or loss, as part
of the gain or loss on sale where applicable.
Renegade Exploration Limited
41
2018 Annual Report
Renegade Exploration Limited
Notes to the financial statements for the financial year ended 30 June 2018
(r)
Leases
Leases of fixed assets where substantially all the risks and benefits incidental to the ownership of the asset, but not the legal
ownership, that are transferred to entities in the economic entity are classified as finance leases.
Finance leases are capitalised by recording an asset and a liability at the lower of the amounts equal to the fair value of the
leased property or the present value of the minimum lease payments, including any guaranteed residual values. Lease
payments are allocated between the reduction of the lease liability and the lease interest expense for the period.
Leased assets are depreciated on a straight-line basis over their estimated useful lives where it is likely that the Group will
obtain ownership of the asset or over the term of the lease. Leases are classified as operating leases where substantially all
the risks and benefits remain with the lessor.
Payments in relation to operating leases are charged as expenses in the periods in which they are incurred. Lease incentives
under operating leases are recognised as a liability and amortised on a straight-line basis over the life of the lease term.
(s)
Segment reporting
Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision
maker. The chief operating decision maker, who is responsible for allocating resources and assessing performance of the
operating segments, has been identified as the Board of Directors of Renegade Exploration Limited.
(t)
Provisions
Provisions are recognised when the Group has a present obligation (legal or constructive) as a result of a past event, it is
probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable
estimate can be made of the amount of the obligation.
Where the Group expects some or all of a provision to be reimbursed, for example under an insurance contract, the
reimbursement is recognised as a separate asset but only when the reimbursement is virtually certain. The expense relating
to any provision is presented in the profit or loss net of any reimbursement.
If the effect of the time value of money is material, provisions are determined by discounting the expected future cash flows
at a pre-tax rate that reflects current market assessments of the time value of money, and where appropriate, the risks
specific to the liability.
Where discounting is used, the increase in the provision due to the passage of time is recognised as a finance cost.
(u)
Fair Value Hierachy
Financial assets and financial liabilities measured at fair value in the statement of financial position are grouped into three
(3) levels of a fair value hierarchy. The three (3) levels are defined based on the observability of significant inputs to the
measurement, as follows:
•
•
•
Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities
Level 2: inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either
directly or indirectly
Level 3: unobservable inputs for the asset or liability
At balance date the Group does not have financial assets or financial liabilities subject to this criteria and carrying values are
assumed to approximate fair values.
Renegade Exploration Limited
42
2018 Annual Report
Renegade Exploration Limited
Notes to the financial statements for the financial year ended 30 June 2018
Fair Value of Assets and Liabilities
(v)
The Group measures some of its assets and liabilities at fair value on either a recurring or non-recurring basis, depending
on the requirements of the applicable Accounting Standard.
Fair value is the price the Group would receive to sell an asset or would have to pay to transfer a liability in an orderly (i.e.
unforced) transaction between independent, knowledgeable and willing market participants at the measurement date.
As fair value is a market-based measure, the closest equivalent observable market pricing information is used to determine
fair value. Adjustments to market values may be made having regard to the characteristics of the specific asset or liability.
The fair values of assets and liabilities that are not traded in an active market is determined using one or more valuation
techniques. These valuation techniques maximise, to the extent possible, the use of observable market data.
To the extent possible, market information is extracted from either the principal market for the asset or liability (i.e. the market
with the greatest volume and level of activity for the asset or liability) or, in the absence of such a market, the most
advantageous market available to the entity at the end of the reporting period (i.e. the market that maximises the receipts
from the sale of the asset or minimises the payments made to transfer the liability, after taking into account transaction costs
and transport costs).
For non-financial assets, the fair value measurement also takes into account a market participant's ability to use the asset
in its highest and best use or to sell it to another market participant that would use the asset in its highest and best use.
These valuation techniques maximise, to the extent possible, the use of observable market data. If all significant inputs
required to measure fair value are observable, the asset or liability is included in Level 2. If one or more significant inputs
are not based on observable market data, the asset or liability is included in Level3.
The Group would change the categorisation within the fair value hierarchy only in the following circumstances:
(i) if a market that was previously considered active (Level 1) became inactive (Level 2 or Level 3) or vice versa; or
(ii) if significant inputs that were previously unobservable (Level3) became observable (Level2) or vice versa. When a
change in the categorisation occurs, the Group recognises transfers between levels of the fair value hierarchy
(i.e. transfers into and out of each level of the fair value hierarchy) on the date the event or change in circumstances
occurred.
Financial Instruments
(w)
The Group initially recognises financial assets on the trade date at which the Group becomes a party to a contractual
provision of the instrument.
Financial assets are initially measured at cost. If the financial asset is not subsequently measured at fair value through profit
or loss, the initial measurement includes transaction costs that are directly attributed to the asset's acquisition. The Group
subsequently measures financial assets at either amortised costs or fair value.
A financial asset is subsequently measured at amortised cost using the effective interest method and net of any impairment
loss, if:
•
•
The asset is held with an objective to collect cash flows; and
The contractual terms give rise to cash flows that are solely payments of principal and interest.
Financial assets other than those classified as financial assets measured at amortised costs are subsequently measured at
fair value with all changes in fair value recognised in profit or loss.
Renegade Exploration Limited
43
2018 Annual Report
Renegade Exploration Limited
Notes to the financial statements for the financial year ended 30 June 2018
All financial liabilities are recognised initially on the trade date at which the Group becomes a party to the contractual
provisions of the instrument. Non derivative financial liabilities are recognised at amortised cost, comprising debt less
principal payment and amortisation.
The Group derecognises a financial liability when its contractual obligations are discharged, cancelled or expire. Financial
assets and financial liabilities are offset when the Group has a legal right to offset the amounts and intends either to settle
on a net basis or to realise the assets and settle the liability simultaneously.
4. Critical accounting estimates and judgments
Estimates and judgements are continually evaluated and are based on historical experience and other factors, including
expectations of future events that may have a financial impact on the entity and that are believed to be reasonable under
the circumstances.
The Group makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition,
seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material
adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below.
Determination of mineral resources and ore reserves
Renegade Exploration Limited estimates its mineral resources and ore reserves in accordance with the Australasian Code
for Reporting of Exploration Results, Mineral Resources and Ore Reserves 2004 (the ‘JORC code’). The information on
mineral resources and ore reserves was prepared by or under the supervision of Competent Persons as defined in the JORC
code. The amounts presented are based on the mineral resources and ore reserves determined under the JORC code.
There are numerous uncertainties inherent in estimating mineral resources and ore reserves and assumptions that are valid
at the time of estimation may change significantly when new information becomes available.
Changes in the forecast prices of commodities, exchange rates, production costs or recovery rates may change the economic
status of reserves and may, ultimately, result in the reserves being restated. Such changes in reserves could impact on
depreciation and amortisation rates, asset carrying values, deferred stripping costs and provisions for decommissioning and
restoration.
Capitalised exploration and evaluation expenditure
The future recoverability of capitalised exploration and evaluation expenditure is dependent on a number of 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.
Factors which could impact the future recoverability include the level of proved, probable and inferred mineral resources,
future technological changes which could impact the cost of mining, future legal changes (including changes to environmental
restoration obligations) and changes to commodity prices.
To the extent that capitalised exploration and evaluation expenditure is determined not to be recoverable in the future, this
will reduce profits and net assets 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 which permits a reasonable assessment of the existence or otherwise of economically recoverable reserves. To the
Renegade Exploration Limited
44
2018 Annual Report
Renegade Exploration Limited
Notes to the financial statements for the financial year ended 30 June 2018
extent that it is determined in the future that this capitalised expenditure should be written off, this will reduce profits and net
assets in the period in which this determination is made.
Share based payment transactions
The Group measures the cost of equity settled transactions with employees by reference to the fair value of the equity
instruments at the date at which they are granted. The fair value is determined by using the Black Scholes formula taking
into account the terms and conditions upon which the instruments were granted, as discussed in note 24.
Functional currency translation reserve
Under the Accounting Standards, each entity within the Group is required to determine its functional currency, which is the
currency of the primary economic environment in which the entity operates. Management considers the Canadian subsidiary
to be a foreign operation with Canadian dollars as the functional currency. In arriving at this determination, management has
given priority to the currency that influences the labour, materials and other costs of exploration activities as they consider
this to be a primary indicator of the functional currency.
Deferred taxation
Deferred tax assets are only recognised for deductible temporary differences and unused tax losses when management
considers that it is probable that future taxable profits will be available to utilise those assets.
5.
Other expenses
General office expenses
Printing and stationary
Telecommunications
Employee salaries/benefits
Others
Consolidated
2018
$
1,300
8,021
1,433
-
15,243
25,997
2017
$
2,245
8,084
1,457
12,664
5,307
29,757
Renegade Exploration Limited
45
2018 Annual Report
Renegade Exploration Limited
Notes to the financial statements for the financial year ended 30 June 2018
6.
Income Tax
(a) Income tax expense
Current tax
Deferred tax
(b) Numerical reconciliation between aggregate tax expense
recognised in the statement of profit or loss and other
comprehensive income and tax expense calculated per the
statutory income tax rate
A reconciliation between tax expense and the product of accounting
profit before income tax multiplied by the Company’s applicable tax rate
is as follows:
(Loss) from operations before income tax expense
Tax at the company rate of 27.5% (2017:27.5%)
Other non-deductible expenses
Income tax benefit not brought to account
Income tax expense
(c) Deferred tax
Statement of financial position
The following deferred tax balances have not been brought to account:
Liabilities
Capitalised exploration and evaluation expenditure
Accrued income
Offset by deferred tax assets
Deferred tax liability recognised
Assets
Consolidated
2018
$
2017
$
-
-
-
-
-
-
(866,890)
(238,395)
-
(662,782)
(182,265)
-
238,395
182,265
-
-
626,324
514,580
-
-
(626,324)
(514,580)
-
-
Losses available to offset against future taxable income (at 27.5%)
12,493,587
12,233,245
Fx loss
Share issue cost deductible over five years
Accrued expenses
Deferred tax assets offset against deferred tax liabilities
Deferred tax assets not brought to account as realisation is not regarded
as probable
Deferred tax asset recognised
Unused tax losses
Potential tax benefit of unused tax losses not
recognised at 27.5% (2017: 27.5%)
(151,432)
66,637
58,532
-
-
3,850
12,467,324
12,237,095
(626,324)
(514,580)
(11,841,000)
(11,722,515)
-
-
43,058,183
42,627,327
11,841,000
11,722,515
Renegade Exploration Limited
46
2018 Annual Report
Renegade Exploration Limited
Notes to the financial statements for the financial year ended 30 June 2018
The benefit for tax losses will only be obtained if:
(i)
the Company derives future assessable income in Australia of a nature and of an amount sufficient to enable
the benefit from the deductions for the losses to be realised;
(ii)
the Company continues to comply with the conditions for deductibility imposed by tax legislation in Australia;
and
(iii)
no changes in tax legislation in Australia, adversely affect the Company in realising the benefit from the
deductions for the losses.
(e) Tax consolidation
Renegade Exploration has not formed a tax consolidation group and there is no tax sharing agreement.
7.
Other Receivables and Prepayments - Current
GST / VAT receivable
Prepayments
Consolidated
2018
$
29,264
46,829
76,093
2017
$
43,219
10,746
53,965
Trade debtors, other debtors and goods and services tax are non-interest bearing and generally receivable on 30 day terms.
They are neither past due nor impaired. The amount is fully collectible. Due to the short term nature of these receivables,
their carrying value is assumed to approximate their fair value.
8. Property, Plant and Equipment
Plant and Equipment
Cost
Accumulated depreciation
Net carrying amount
Camp Buildings
Cost
Accumulated depreciation
Net carrying amount
Total property, plant and equipment
Cost
Accumulated depreciation
Net carrying amount
Consolidated
2018
$
141,966
(88,764)
53,202
2017
$
144,955
(89,148)
55,807
335,958
331,817
(230,584)
(216,178)
105,374
115,639
477,924
476,772
(319,348)
(305,326)
158,576
171,446
Renegade Exploration Limited
47
2018 Annual Report
Renegade Exploration Limited
Notes to the financial statements for the financial year ended 30 June 2018
Reconciliations of the carrying amounts of property, plant and equipment at the beginning and end of the current financial
year:
Plant and Equipment
Carrying amount at beginning of year
Additions
Depreciation expense
Net exchange differences on translation
Carrying amount at end of year
Camp Buildings
Carrying amount at beginning of year
Additions
Depreciation expense
Net exchange differences on translation
Carrying amount at end of year
Consolidated
2018
$
2017
$
55,807
2,369
(5,505)
531
53,202
64,173
-
(6,201)
(2,165)
55,807
Consolidated
2018
$
2017
$
115,639
132,977
-
(11,366)
1,101
105,374
-
(12,849)
(4,489)
115,639
Total property, plant and equipment
158,576
171,446
9. Investments in subsidiaries
The consolidated financial statements incorporate the assets, liabilities and results of the following subsidiaries in accordance
with the accounting policy described in note 3 (c). Details of subsidiaries are as follows:
Name
Country of incorporation
% Equity Interest
Overland Resources Yukon Limited
Canada
Overland Resources (BC) Limited
Canada
2018
100%
100%
2017
100%
100%
10.
Other Receivables – Non Current
Consolidated
Advance to supplier
2018
$
228,330
228,330
2017
$
225,515
225,515
Other receivables represent an advance for demobilisation. The amount has been fully provided, refer note 12(b).
Renegade Exploration Limited
48
2018 Annual Report
Renegade Exploration Limited
Notes to the financial statements for the financial year ended 30 June 2018
11.
Deferred Exploration and Evaluation Expenditure
Exploration and evaluation expenditure
At cost
Accumulated provision for impairment
Total exploration and evaluation
Carrying amount at beginning of the year
Exploration and evaluation expenditure during the year
Impairment/written off
Reclassified as assets held for sale1
Net exchange differences on translation
Carrying amount at end of year
Consolidated
2018
$
2017
$
34,144,501
32,850,186
(31,884,127)
(30,978,985)
2,260,374
1,871,201
1,871,201
1,476,557
742,989
444,478
(355,631)
(17,168)
-
-
18,983
(49,834)
2,260,374
1,871,201
1In January 2018, the Company executed a binding term sheet with Rafaella Resources Ltd for sale of its McCleery Project.
Therefore the McCleery Project has been classified as assets held for sale. The sale was completed in July 2018.
The Directors’ assessment of the carrying amount for the Group’s exploration and development expenditure was after
consideration of prevailing market conditions; previous expenditure for exploration work carried out; and the potential for
mineralisation based on the Group’s independent geological reports. The recoverability of the carrying amount of the deferred
exploration and evaluation expenditure is dependent on successful development and commercial exploitation, or
alternatively the sale, of the respective areas of interest. In June 2012, the Company announced it was suspending mine
permit activities associated with the Yukon Base Metal Project.
12.
Current Liabilities
(a)
Trade payables1
Trade and other payables
Accruals
Consolidated
2018
$
2017
$
130,384
216,762
347,146
48,138
104,000
152,138
Due to the short term nature of these payables, their carrying value is assumed to approximate their fair value.
Renegade Exploration Limited
49
2018 Annual Report
Renegade Exploration Limited
Notes to the financial statements for the financial year ended 30 June 2018
(b)
Provisions (Non-current)
Consolidated
2018
$
2017
$
Provision for prepayment of demobilisation costs (refer
228,330
225,515
note 10)
13.
Contributed Equity
(a) Issued and paid up capital
Ordinary shares fully paid
228,330
225,515
Consolidated
2018
$
2017
$
44,012,408
42,063,930
2018
Number of
shares
2017
Number of shares
$
$
(b) Movements in ordinary shares on issue
Balance at beginning of year
514,239,963
42,063,930
354,343,236
40,584,296
Share Issue at $0.007941 on 16 December 2016
Share Issue at $0.012 on 17 March 2017
Entitlement Issue at $0.01 on 13 April 2017
Entitlement Issue at $0.01 on 21 April 2017
Share Issue at $0.009 on 28 June 2017
Share Issue at $0.0115 on 28 June 2017
-
-
-
-
-
-
-
-
-
-
-
-
Share Issue at $0.00604 on 09 October 2017
16,568,498
100,074
Share Issue at $0.011 on 12 March 2018
132,702,115
1,459,723
Share Issue at $0.011 on 30 April 2018
49,116,062
540,277
Transaction costs on share issue
-
(151,596)
12,592,872
10,000,000
67,264,391
58,380,978
8,180,225
3,478,261
-
-
-
-
100,000
120,000
672,643
583,810
73,508
40,000
-
-
-
(110,327)
712,626,638
44,012,408
514,239,963
42,063,930
(c) Ordinary shares
The Group does not have authorised capital nor par value in respect of its issued capital. Ordinary shares have the right to
receive dividends as declared and, in the event of a winding up of the Company, to participate in the proceeds from sale of
all surplus assets in proportion to the number of and amounts paid up on shares held. Ordinary shares entitle their holder
to one vote, either in person or proxy, at a meeting of the Company.
(d) Capital Risk Management
Renegade Exploration Limited
50
2018 Annual Report
Renegade Exploration Limited
Notes to the financial statements for the financial year ended 30 June 2018
The Group’s capital comprises share capital, reserves less accumulated losses amounting to $4,441,544 at 30 June 2018
(2017: $3,075,133). The Group manages its capital to ensure its ability to continue as a going concern and to optimise
returns to its shareholders. The Group was ungeared at year end and not subject to any externally imposed capital
requirements. Refer to note 23 for further information on the Group’s financial risk management policies.
(e) Share options
At 30 June 2018, there were 56,568,498 unissued ordinary shares under options (2017: 10,000,000 options). During the
financial year 46,568,498 options were issued and no options expired. No options were exercised during the financial year.
Since the end of the financial year, no options have been issued, exercised or expired.
No option holder has any right under the options to participate in any other share issue of the Company or any other entity.
Information relating to the Renegade Exploration Limited Employee Share Option Plan, including details of options issued
under the plan, is set out in note 24.
14.
Accumulated losses
Movements in accumulated losses were as follows:
At 1 July
Loss for the year
At 30 June
15.
Reserves
Share based payments reserve
Foreign currency translation reserve
Movement in reserves:
Share based payments reserve
Balance at beginning of year
Equity benefits expense
Balance at end of year
Consolidated
2018
$
2017
$
42,271,842
41,609,060
866,890
662,782
43,138,732
42,271,842
Consolidated
2018
$
2017
$
4,118,528
3,855,028
(550,660)
(571,983)
3,567,868
3,283,045
3,855,028
3,855,028
263,500
-
4,118,528
3,855,028
The Share based payments reserve is used to record the value of equity benefits provided to individuals acting as employees
and directors as part of their remuneration, provided to brokers as a fee for services provided in respect of an entitlement
issue, Initial Public Offer underwriting agreement and for the exercising of the option to purchase the Yukon Base Metal
Project. Refer to note 24(b) for details of share based payments during the financial year and prior year.
Renegade Exploration Limited
51
2018 Annual Report
Consolidated
Renegade Exploration Limited
Notes to the financial statements for the financial year ended 30 June 2018
Foreign currency translation reserve
At 1 July
Foreign currency translation
Balance at end of year
2018
$
2017
$
(571,983)
(517,196)
21,323
(54,787)
(550,660)
(571,983)
The foreign currency translation reserve is used to record the currency difference arising from the translation of the financial
statements of the foreign operation.
16.
Cash and Cash Equivalents
(a) Reconciliation of cash
Cash balance comprises:
Cash and cash equivalents
(b) Reconciliation of the net loss after tax to the net
cash flows from operations
Net loss after tax
Adjustments for:
Share Based Payment
Creditors settled by issue of shares
Provision for impairment of exploration expenditure
Sale of fixed assets
Changes in operating assets and liabilities:
(Increase) in other receivables/prepayments
Increase in trade and other payables
Net cash flow used in operating activities
17.
Expenditure commitments
(a) Expenditure commitments
Consolidated
2018
$
2017
$
2,280,396
1,130,659
(866,890)
(662,782)
163,500
-
355,631
(3,060)
210,000
40,000
-
-
(22,128)
199,633
(26,516)
23,832
(173,314)
(415,466)
Under the terms and conditions of being granted exploration licenses, the Group may have annual commitments for the term
of the license. These are as follows:
Australia
Canada
(b) Services agreement
Within one year
Consolidated
2018
$
185,000
-
185,000
2017
$
102,547
4,210
106,757
-
-
-
-
Renegade Exploration Limited
52
2018 Annual Report
Renegade Exploration Limited
Notes to the financial statements for the financial year ended 30 June 2018
18.
Subsequent events
The sale of McCleery Mineral has been completed in July 2018. The Company has received 500,000 Ordinary Shares of
Rafaella Resources Ltd.
Other than this, there are no matters or circumstances have arisen since the end of the financial period which significantly
affected or may significantly affect the operations of the Company, the results of those operations, or the state of affairs of
the Company in future financial years.
Consolidated
2018
$
2017
$
19.
Loss per share
Loss used in calculating basic and dilutive EPS
(866,890)
(662,782)
Number of Shares
2018
2017
Weighted average number of ordinary shares used in
calculating basic earnings / (loss) per share:
574,424,609
389,616,690
Effect of dilution:
Share options
Adjusted weighted average number of ordinary
-
-
shares used in calculating diluted loss per share:
574,424,609
389,616,690
Basic and Diluted loss per share (cents per share)
(0.15)
(0.17)
There is no impact from the 56,568,498 options outstanding at 30 June 2018 (2017: 10,000,000 options) on the loss per
share calculation because they are anti-dilutive. These options could potentially dilute basic EPS in the future.
There have been no transactions involving ordinary shares or potential ordinary shares that would significantly change the
number of ordinary shares or potential ordinary shares outstanding between the reporting date and the date of completion
of these financial statements.
20.
Auditor’s remuneration
The auditor of Renegade Exploration Limited and its subsidiaries is Stantons International Audit and Consulting Pty Ltd
Amounts received or due and receivable by Stantons International Audit and Consulting Pty Ltd for:
Audit or review of the financial report of the Company
Consolidated
2018
$
34,225
34,225
2017
$
24,618
24,618
Renegade Exploration Limited
53
2018 Annual Report
Renegade Exploration Limited
Notes to the financial statements for the financial year ended 30 June 2018
21.
Key Management Personnel Disclosures
(a) Details of Key Management Personnel
Mr. Robert Kirtlan
Chairman – appointed 23 May 2017
Mr. Peter Voulgaris
Non-Executive Director – appointed 24 November 2017
Mr. Mark Wallace
Non-Executive Director – appointed 25 June 2017
Mr. Ben Vallerine
Chief Executive Officer – appointed 6 December 2016
Mr. Hugh Bresser
Non-Executive Director – resigned 24 November 2017
Ms. Beverley Nichols
Company Secretary/Chief Financial Officer – resigned 31 August 2017
(b) Remuneration of Key Management Personnel
Details of the nature and amount of each element of the emolument of each Director and Executive of the Group for the
financial year are as follows:
Short term employee benefits
Share based payments
Total remuneration
22.
Related Party Disclosures
Consolidated
2018
$
2017
$
188,200
73,500
219,858
210,000
261,700
429,858
The ultimate parent entity is Renegade Exploration Limited. Refer to Note 9 Investments in subsidiaries for a list of all
subsidiaries.
Payments to related parties during the period:
(i)
ARK Securities & Investments Pty Ltd, a company of which Robert Kirtlan is a director, was paid 7,500,000
unlisted options, exercisable at $0.025, expiring 31 March 2021, pursuant to the EIP. Also, South Shore Group
Pty Ltd, a company of which Robert Kirtlan is a director, was paid 7,500,000 unlisted options, exercisable at
$0.035, expiring 31 March 2021, pursuant to the EIP.
(ii)
Sierra Whiskey Pty Limited, a company of which Mark Wallace is a director, was paid 7,500,000 unlisted
options, exercisable at $0.025, expiring 31 March 2021 and 7,500,000 unlisted options, exercisable at $0.035,
expiring 31 March 2021, pursuant to the EIP.
Renegade Exploration Limited has undertaken a commercial arrangement with Vault Intelligence Limited where Robert
Kirtlan is a director for Vault Intelligence Limited. The arrangement is for a sub-lease of commercial premises by Renegade
Exploration Limited which is Vault intelligence Limited’s registered office at commercial terms equal to the lease terms
received by Renegade Exploration Limited in an arms-length transaction with a third party, being the lessor of the main
lease. During the year, the total rent and outgoing payment to Vault Intelligence is $22,371.
There were no other related party disclosures for the year ended 30 June 2018 (2017: Nil).
Renegade Exploration Limited
54
2018 Annual Report
Renegade Exploration Limited
Notes to the financial statements for the financial year ended 30 June 2018
23.
Financial Instruments and Financial Risk Management
Exposure to interest rate, liquidity and credit risk arises in the normal course of the Group’s business. The Group does not
hold or issue derivative financial instruments.
The Company uses different methods as discussed below to manage risks that arise from financial instruments. The
objective is to support the delivery of the financial targets while protecting future financial security.
(a)
Liquidity Risk
Liquidity risk is the risk that the Group will encounter difficulty in meeting obligations associated with financial liabilities.
The Group manages liquidity risk by maintaining sufficient cash facilities to meet the operating requirements of the business
and investing excess funds in highly liquid short term investments. The responsibility for liquidity risk management rests with
the Board of Directors.
Alternatives for sourcing our future capital needs include our cash position and the issue of equity instruments. These
alternatives are evaluated to determine the optimal mix of capital resources for our capital needs. We expect that in absence
of a material adverse change in a combination of our sources of liquidity, present levels of liquidity will be adequate to meet
our expected capital needs.
Maturity analysis for financial liabilities
Financial liabilities of the Group comprise trade and other payables. As at 30 June 2018 and 30 June 2017, all financial
liabilities are contractually matured within 60 days.
(b)
Interest Rate Risk
Interest rate risk arises from the possibility that changes in interest rates will affect future cash flows or the fair value of
financial instruments.
The Group’s exposure to market risk for changes to interest rate risk relates primarily to its earnings on cash and term
deposits. The Group manages the risk by investing in short term deposits.
Cash and cash equivalents
Interest rate sensitivity
Consolidated
2018
$
2017
$
2,280,396
1,130,659
The following table demonstrates the sensitivity of the Group’s statement of profit or loss and other comprehensive income
to a reasonably possible change in interest rates, with all other variables constant.
Renegade Exploration Limited
55
2018 Annual Report
Renegade Exploration Limited
Notes to the financial statements for the financial year ended 30 June 2018
Consolidated
Change in Basis Points
Judgements of reasonably possible
movements
Increase 100 basis points
Decrease 100 basis points
Effect on Post Tax Loss
Effect on Equity
Increase/(Decrease)
including accumulated losses
2018
$
22,804
(22,804)
2017
$
11,307
(11,307)
Increase/(Decrease)
2018
$
22,804
(22,804)
2017
$
11,307
(11,307)
A sensitivity of 100 basis points has been used as this is considered reasonable given the current level of both short term
and long term interest rates. The change in basis points is derived from a review of historical movements and management’s
judgement of future trends. The analysis was performed on the same basis in 2017.
(c) Credit Risk Exposures
Credit risk represents the risk that the counterparty to the financial instrument will fail to discharge an obligation and cause
the Group to incur a financial loss. The Group’s maximum credit exposure is the carrying amounts on the statement of
financial position. The Group holds financial instruments with credit worthy third parties.
At 30 June 2018, the Group held cash and bank deposits. Cash and short term deposits were held with financial institutions
with a rating from Standard & Poors of A or above (long term). The Group has no past due or impaired debtors as at 30 June
2018 (2017: Nil).
At 30 June 2018, the Group held an advance to supplier of CAD$225,000. The advance to supplier is for demobilisation
services. The balance has been fully provided (Refer note 10 & 12(b)).
(d) Foreign Currency Risk Exposure
As a result of operations in Canada and expenditure in Canadian dollars, the Group’s statement of financial position can be
affected by movements in the CAD$/AUD$ exchange rates. The Group seeks to mitigate the effect of its foreign currency
exposure by holding cash in Canadian dollars to match expenditure commitments.
Sensitivity analysis:
The table below summarises the FX exposure on the net monetary position of parent and the subsidiary against its respective
functional currency, expressed in group’s presentation currency. If the AUD/ CAD rates moved by +10%, the effect on
comprehensive loss would be as follows:
Financial Assets denominated in foreign currency in the books of
2018
2017
Renegade Exploration Limited Australia
Loan to subsidiary Overland Resources Yukon Limited (in CAD), net of
provision for impairment
1,692,562
1,706,035
Loan to subsidiary Overland Resources Yukon Limited (in AUD), net of
provision for impairment
1,717,622
1,709,940
Percentage shift of the AUD / CAD exchange rate
Total effect on comprehensive loss of positive movements
Total effect on comprehensive loss of negative movements
10%
A$
190,846
(156,147)
10%
A$
189,993
(155,449)
Renegade Exploration Limited
56
2018 Annual Report
Renegade Exploration Limited
Notes to the financial statements for the financial year ended 30 June 2018
(e) Fair Value
The aggregate net fair values of the Consolidated Entity’s financial assets and financial liabilities both recognised and
unrecognised are as follows:
Carrying Amount in the
Aggregate Net
Carrying Amount in the
Aggregate Net
Financial Statements
Fair Value
Financial Statements
Fair Value
2018
$
2018
$
2017
$
2017
$
2,280,396
2,280,396
1,130,659
1,130,659
257,594
257,594
268,734
268,734
351,063
351,063
152,138
152,138
Financial Assets
Cash Assets
Receivables
Financial Liabilities
Payables
The following methods and assumptions are used to determine the net fair value of financial assets and liabilities.
Cash assets and financial assets and financial liabilities are carried at amounts approximating fair value because of their
short term nature to maturity.
24.
Share Based Payment Plans
(a) Recognised share based payment expenses
Total share based payment transactions recognised during the year were as follows:
Consolidated
Shares Issued
Shares issued for introducing The Trojan Gold Project
Performance shares to be issued for introducing The
Trojan Gold Project
16,568,498 Share issued in pursuant to the option to
purchase 75% of the Yandal East gold project
Options Issued
Options issued in pursuant to the option to purchase 75%
of the Yandal East gold project
Options issued to Directors
2018
$
-
-
100,073
100,073
100,0002
163,500
263,500
2017
$
120,000
90,0001
-
210,000
-
-
-
1$90,000 accrued for finder’s fee payable to CEO Mr. Ben Vallerine through issue of 15 million performance shares for
introduction of the Trojan Gold Project. The company has not issued the shares due to the Termination of Heads of
Agreement – Trojan Gold Project.
2 16,568,498 options issued for Yandel East Option were valued at a deemed value of $100,000.00
Renegade Exploration Limited
57
2018 Annual Report
Renegade Exploration Limited
Notes to the financial statements for the financial year ended 30 June 2018
(b) Share based payment to employees
The Group has established an employee share option plan (ESOP). The objective of the ESOP is to assist in the recruitment,
reward, retention and motivation of employees of the Company. Under the ESOP, the Directors may invite individuals acting
in a manner similar to employees to participate in the ESOP and receive options. An individual may receive the options or
nominate a relative or associate to receive the options. The plan is open to executive officers and employees of the Group.
Details of options granted under ESOP are as follows:
2018
Grant
date
Expiry date Exercise
Balance at
Granted
Exercised
Expired
Balance at
Exercisable at end
price
start of the
during the
during the
during the
end of the
of the year
year
year
year
year
year
Number
Number
Number
Number
Number
Number
26/04/18 31/03/21
$0.025
26/04/18 31/03/21
$0.035
Weighted remaining contractual
life (years)
Weighted average exercise price
-
-
-
-
-
15,000,000
15,000,000
30,000,000
-
-
-
-
-
-
15,000,000
15,000,000
15,000,000
15,000,000
30,000,000
30,000,000
-
-
2.75
2.75
$0.30
$0.30
During the financial year no options were issued. The fair value at grant date of options granted in previous reporting periods
was determined using the Black Scholes option pricing model that takes into account the exercise price, the term of the
option, the share price at grant date and expected price volatility of the underlying share and the risk free interest rate for
the term of the option.
2017
Grant
Expiry date Exercise
Balance at
Granted
Exercised
Expired
Balance at
Exercisable at end
date
price
start of the
during the
during the
during the
end of the
of the year
23/12/11 01/12/16
$0.25
year
year
year
year
year
Number
Number
Number
Number
Number
Number
9,700,000
9,700,000
-
-
-
-
(9,700,000)
(9,700,000)
-
-
-
-
Weighted remaining contractual
life (years)
1.42
Weighted average exercise price
$0.25
-
-
-
-
-
-
During the financial year no options were issued. The fair value at grant date of options granted in previous reporting periods
was determined using the Black Scholes option pricing model that takes into account the exercise price, the term of the
option, the share price at grant date and expected price volatility of the underlying share and the risk free interest rate for
the term of the option.
Renegade Exploration Limited
58
2018 Annual Report
Renegade Exploration Limited
Notes to the financial statements for the financial year ended 30 June 2018
(c) Other share based payments
The table below summaries options granted to suppliers:
2018
Grant
Expiry date Exercise
Balance at
Granted
Exercised
Expired
Balance at
Exercisable at end
date
price
start of the
during the
during the
during the
end of the
of the year
year
year
year
year
year
Number
Number
Number
Number
Number
Number
21/04/16 20/04/19
$0.007
10,000,000
-
09/10/17 19/01/20
$0.00754
-
16,568,4981
10,000,000 16,568,498
-
-
-
-
-
-
10,000,000
10,000,000
16,568,498
16,568,498
26,568,498
26,568,498
Weighted remaining contractual
life (years)
1.81
Weighted average exercise price $0.007
1.27
1.27
$0.0073
$0.0073
1For acquisition of option over Yandal Gold project. The company also issued 16,568,498 shares to Zebina Minerals Pty
Ltd as option fee for option over Yandal Gold project.
2017
Grant
Expiry date Exercise
Balance at
Granted
Exercised
Expired
Balance at
Exercisable at end
date
price
start of the
during the
during the
during the
end of the
of the year
year
year
year
year
year
Number
Number
Number
Number
Number
Number
21/04/16 20/04/19
$0.007
10,000,000
Weighted remaining contractual
life (years)
10,000,000
2.81
Weighted average exercise price $0.007
-
-
-
-
-
-
10,000,000
10,000,000
10,000,000
10,000,000
1.81
1.81
$0.007
$0.007
25.
Yandal East Gold Project – Acquisition Terms
Renegade has executed a binding agreement with Zebina Minerals Pty Ltd (Vendor) whereby Renegade has an option to
acquire 75% of the Project on or before 28th February 2019. The terms option are as follows:
Earn-in Phase:
1. Renegade will issue the Vendor A$100,000 of RNX scrip, based on the volume weighted average price (VWAP)
for the month of August 2017 (Option Shares). The shares will be escrowed for 12 months. The shares were
issued on 9th October 2017.
2. Renegade will also issue to the Vendor an equal number of unlisted options (Options) to acquire RNX shares.
The Options will have an exercise price of $0.00754, and will expire 24 months from the date of satisfaction on
waiver of the last of the condition precedent as per agreement. The options were issued on 19th January 2018.
3. Renegade is required to undertake A$350,000 worth of expenditure on the Project within the 18 month option
period.
Renegade Exploration Limited
59
2018 Annual Report
Renegade Exploration Limited
Notes to the financial statements for the financial year ended 30 June 2018
Execution Phase:
4. Upon issuance of its notice of intent to exercise the option Renegade will issue the Vendor an additional
A$400,000 of RNX scrip, at a 10% discount to the 20-day VWAP prior to notice of intent. 50% of the shares
will be escrowed for 6 months with the balance escrowed for 12 months.
26.
Contingent Liabilities
There are no known contingent liabilities as at 30 June 2018 (2017: Nil).
27.
Operating Segment
For management purposes, the Group is organised into two geographical operating segment, Australia and Canada, which
involves mining exploration for zinc. All of the Group’s activities are interrelated, and discrete financial information is reported
to the Board (Chief Operating Decision Makers) as a single segment. 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. The Group operates in Australia and Canada. As at 30 June 2018, the total non-current
assets in Canada and Australia are $1,933,287 and $713,992 respectively (30 June 2017: $2,060,270 and $207,892
respectively). The following table shows the assets and liabilities of the Group by geographic region:
Current Assets
Australia
Canada
Non Current Assets
Australia
Canada
Total Assets
Current Liabilities
Australia
Canada
Non Current Liabilities
Australia
Canada
Total Liabilities
28.
Dividends
2018
$
2017
$
2,363,444
1,165,727
10,213
18,897
1,933,287
350,330
713,993
1,917,832
5,020,937
3,452,786
336,347
150,876
14,716
1,262
-
228,330
579,393
-
225,515
377,653
No dividend was paid or declared by the Company in the period since the end of the financial year and up to the date of this
report. The Directors do not recommend that any amount be paid by way of dividend for the financial year ended 30 June
2018 (2017: Nil). The balance of the franking account as at 30 June 2018 is Nil (2017: Nil).
Renegade Exploration Limited
60
2018 Annual Report
Renegade Exploration Limited
Notes to the financial statements for the financial year ended 30 June 2018
29.
Information relating to Renegade Exploration Limited (“the parent entity”)
Current assets
Non-current assets
Total assets
Current liabilities
Total liabilities
Net assets
Issued capital
Accumulated losses
Share based payment reserve
(Loss) of the parent entity
Total comprehensive (loss) of the parent entity
Guarantees entered into by the parent entity in relation to
the debts of its subsidiaries
Guarantees provided
Contingent liabilities of the parent entity
Commitment for the acquisition of property, plant and
equipment by the parent entity
Not longer than one year
Longer than one year and not longer than five years
Longer than five years
2018
$
2017
$
2,346,276
1,165,726
2,431,625
2,060,281
4,777,901
3,226,007
336,346
336,346
150,874
150,874
4,441,555
3,075,133
44,012,408
42,063,930
(43,689,381)
(42,843,825)
4,118,528
3,855,028
4,441,555
3,075,133
(845,556)
(717,569)
(845,556)
(717,569)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Renegade Exploration Limited
61
2018 Annual Report
Renegade Exploration Limited
DIRECTORS' DECLARATION
In accordance with a resolution of the directors of Renegade Exploration Limited, I state that:
In the opinion of the directors:
(a) the financial statements and notes of the consolidated entity are in accordance with the Corporations Act 2001,
including:
(i)
giving a true and fair view of the consolidated entity’s financial position as at 30 June 2018 and of its
performance for the year ended on that date; and
(ii) complying with Australian Accounting Standards (including the Australian Accounting Interpretations) and
the Corporations Regulations 2001;
(b) the financial statements and notes also comply with International Financial Reporting Standards as disclosed in
note 3(a); and
(c)
there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become
due and payable.
(d) this declaration has been made after receiving the declarations required to be made to the Directors in accordance
with section 295A of the Corporations Act 2001 for the financial year ended 30 June 2018.
On behalf of the Board
Robert Kirtlan
Chairman
28 September 2018
Renegade Exploration Limited
62
2018 Annual Report
PO Box 1908
West Perth WA 6872
Australia
Level 2, 1 Walker Avenue
West Perth WA 6005
Australia
Tel: +61 8 9481 3188
Fax: +61 8 9321 1204
ABN: 84 144 581 519
www.stantons.com.au
Stantons International Audit and Consulting Pty Ltd
trading as
Chartered Accountants and Consultants
28 September 2018
Board of Directors
Renegade Exploration Limited
Suite 5, Level 1
12-20 Railway Road
SUBIACO WA 6008
Dear Directors
RE:
RENEGADE EXPLORATION LIMITED
In accordance with section 307C of the Corporations Act 2001, I am pleased to provide the following
declaration of independence to the directors of Renegade Exploration Limited.
As Audit Director for the audit of the financial statements of Renegade Exploration Limited for the year ended
30 June 2018, I declare that to the best of my knowledge and belief, there have been no contraventions of:
(i)
the auditor independence requirements of the Corporations Act 2001 in relation to the audit; and
(ii)
any applicable code of professional conduct in relation to the audit.
Yours sincerely
STANTONS INTERNATIONAL AUDIT AND CONSULTING PTY LTD
(Trading as Stantons International)
(An Authorised Audit Company)
Martin Michalik
Director
Liability limited by a scheme approved
under Professional Standards Legislation
Stantons International Audit and Consulting Pty Ltd
trading as
Chartered Accountants and Consultants
PO Box 1908
West Perth WA 6872
Australia
Level 2, 1 Walker Avenue
West Perth WA 6005
Australia
Tel: +61 8 9481 3188
Fax: +61 8 9321 1204
ABN: 84 144 581 519
www.stantons.com.au
INDEPENDENT AUDITOR’S REPORT
TO THE MEMBERS OF
RENEGADE EXPLORATION LIMITED
Report on the Audit of the Financial Report
Opinion
We have audited the financial report of Renegade Exploration Limited (Formerly Overland Resources Limited), the
Company and its subsidiaries (“the Group”), which comprises the consolidated statement of financial position as at 30
June 2018, the consolidated statement of 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 statements, including a
summary of significant accounting policies, and the directors' declaration.
In our opinion, the accompanying financial report of the Group is in accordance with the Corporations Act 2001,
including:
(i)
giving a true and fair view of the Group’s financial position as at 30 June 2018 and of its financial performance
for the year then ended; 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 auditor independence requirements of the Corporations Act 2001 and
the ethical requirements of the Accounting Professional and Ethical Standards Board's APES 110 Code of Ethics for
Professional Accountants (the Code) that are relevant to our audit of the financial report in Australia. We have also
fulfilled our other ethical responsibilities in accordance with the Code.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Key Audit Matters
We have determined the matters described below to be Key Audit Matter to be communicated in our report.
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.
Liability limited by a scheme approved
under Professional Standards Legislation
Key Audit Matters
How the matter was addressed in the audit
Carrying value of deferred exploration and
evaluation expenditure
As at 30 June 2018, deferred exploration and
evaluation expenditure totalled $2,260,374 (refer to
Note 11 of the financial report).
The carrying value of deferred exploration and
evaluation expenditure is a key audit matter due to:
The significance of the total balance (45% of
total assets);
to assess management’s
The necessity
the
requirements of
the
application of
accounting standard Exploration
for and
Evaluation of Mineral Resources (“AASB 6”), in
light of any indicators of impairment that may be
present; and
The assessment of significant judgements
made by management
the
to
evaluation
exploration
capitalised
expenditure.
in relation
and
Inter alia, our audit procedures
following:
included
the
i. Assessing the Group’s right to tenure over
exploration assets by corroborating
the
ownership of the relevant licences for mineral
resources to government registries and relevant
third-party documentation;
ii. Reviewing the directors’ assessment of the
carrying value of the exploration and evaluation
the veracity of
costs, ensuring
the data
presented and
that management have
considered the effect of potential impairment
indicators, commodity prices and the stage of
the Group’s projects also against AASB 6;
iii. Evaluation of Group documents for consistency
with the intentions for continuing exploration and
evaluation activities in areas of interest and
corroborated with interviews with management.
The documents we evaluated included:
Minutes of the board and management; and
Announcements made by the Group to the
Australian Securities Exchange; and
iv. Consideration of the requirements of accounting
standard AASB 6 and reviewed the financial
statements to ensure appropriate disclosures
are made.
Other Information
The directors are responsible for the other information. The other information comprises the information included in the
Group's annual report for the year ended 30 June 2018, but does not include the financial report and our auditor's
report thereon.
Our opinion on the financial report does not cover the other information and accordingly we do not express any form of
assurance conclusion thereon.
In connection with our audit of the financial report, our responsibility is to read the other information and, in doing so,
consider whether the other information is materially inconsistent with the financial report or our knowledge obtained in
the audit or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that
there is a material misstatement of this other information, we are required to report that fact. We have nothing to report
in this regard.
Responsibilities of the Directors for the Financial Report
The directors of the Company are responsible for the preparation of the financial report that gives a true and fair view
in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such internal control as
the directors determine is necessary to enable the preparation of the financial report that gives a true and fair view
and is free from material misstatement, whether due to fraud or error.
In preparing the financial report, the directors are responsible for assessing the ability of the Group to continue as a
going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of
accounting unless the directors either intend to liquidate the Group or to cease operations, or has no realistic alternative
but to do so.
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.
As part of an audit in accordance with Australian Auditing Standards, we exercise professional judgement and maintain
professional scepticism throughout the audit. An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial report.
The procedures selected depend on the auditor's judgement, including the assessment of the risks of material
misstatement of the financial report, whether due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the entity's preparation of the financial report that gives a true and fair view in
order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the entity's internal control.
The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as
fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of
accounting estimates made by the Directors, as well as evaluating the overall presentation of the financial report.
We conclude on the appropriateness of the Directors' use of the going concern basis of accounting and, based on the
audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant
doubt on the Group's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are
required to draw attention in our auditor's report to the related disclosures in the financial report or, if such disclosures
are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our
auditor’s report. However, future events or conditions may cause the Group to cease to continue as a going concern.
We evaluate the overall presentation, structure and content of the financial report, including the disclosures, and
whether the financial report represents the underlying transactions and events in a manner that achieves fair
presentation.
We obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities
within the Group to express an opinion on the financial report. We are responsible for the direction, supervision and
performance of the Group audit. We remain solely responsible for our audit opinion.
We communicate with the Directors regarding, among other matters, the planned scope and timing of the audit and
significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
The Auditing Standards require that we comply with relevant ethical requirements relating to audit engagements. We
also provide the Directors with a statement that we have complied with relevant ethical requirements regarding
independence, and to communicate with them all relationships and other matters that may reasonably be thought to
bear on our independence, and where applicable, related safeguards.
From the matters communicated with the Directors, we determine those matters that were of most significance in the
audit of the financial report of the current period and are therefore key audit matters. We describe these matters in our
auditor's report unless law or regulation precludes public disclosure about the matter or when, in extremely rare
circumstances, we determine that a matter should not be communicated in our report because the adverse
consequences of doing so would reasonably be expected to outweigh the public interest benefits of such
communication.
Report on the Remuneration Report
Opinion on the Remuneration Report
We have audited the Remuneration Report included in pages 20 to 24 of the directors’ report for the year ended 30
June 2018.
In our opinion, the Remuneration Report of Renegade Exploration Limited for the year ended 30 June 2018 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.
STANTONS INTERNATIONAL AUDIT AND CONSULTING PTY LTD
(Trading as Stantons International)
(An Authorised Audit Company)
Martin Michalik
Director
West Perth, Western Australia
28 September 2018
Renegade Exploration Limited
ASX Additional Information
Additional information required by the Australian Securities Exchange Limited Listing Rules and not disclosed elsewhere in
this report. The additional information was applicable as at 21 September 2018.
DISTRIBUTION OF SECURITY HOLDERS
Analysis of numbers of listed equity security holders by size of holding:
Category
1
1,001
5,001
10,001
100,001
-
-
-
-
1,000
5,000
10,000
100,000
and over
Number of
Shareholders
29
10
16
173
386
614
Units
3,739
28,283
129,150
11,840,607
700,624,859
712,626,638
There are 245 shareholders holding less than a marketable parcel of ordinary shares.
STATEMENT OF RESTRICTED SECURITIES
There are 16,568,498 restricted securities as at 21 September 2018.
SUBSTANTIAL SHAREHOLDERS
The substantial shareholders of the Company are as follows:
Name
Sierra Whiskey Pty Ltd
VOTING RIGHTS
Number of equity
securities
43,600,000
The voting rights attached to each class of equity security are as follows:
ORDINARY SHARES
Each ordinary share is entitled to one vote when a poll is called otherwise each member present at a meeting or by proxy has
one vote on a show of hands.
OPTIONS
These securities have no voting rights.
Renegade Exploration Limited
68
2018 Annual Report
Renegade Exploration Limited
TOP 20 SHAREHOLDERS
Name of Holder
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
SIERRA WHISKEY PTY LIMITED
NERO RESOURCE FUND PTY LTD
MR ANTON WASYL MAKARYN + MRS MELANIE FRANCES MAKARYN
ABROLHOS EDGE PTY LTD
ZEBINA MINERALS PTY LTD
MR PAUL NOBLE BENNETT
BARTORILLA ENTERPRISES PTY LTD
ZEBINA MINERALS PTY LTD
MR JEREMY TOBIAS
MR PAUL NOBLE BENNETT
THIRD REEF PTY LTD
JETOSEA PTY LTD
RESOURCE INVESTMENT CAPITAL HOLDINGS PTY LTD
PERSHING AUSTRALIA NOMINEES PTY LTD
TOLTEC HOLDINGS PTY LTD
MR BENJAMIN MATHEW VALLERINE
MR BENJAMIN MATHEW VALLERINE
WESTERN DISCOVERY PTY LTD
CAP HOLDINGS PTY LTD
MR TROY MITCHELL O'KEEFE
Number of
Percentage of
Share
s Held
43,600,000
19,590,896
19,209,127
12,592,872
11,343,527
10,933,236
10,170,000
10,080,000
9,292,975
8,627,940
8,400,000
8,394,846
8,180,225
8,000,000
6,666,667
6,666,667
6,500,000
6,191,833
6,040,000
6,000,000
226,480,811
Capital
8.48
3.81
3.74
2.45
2.21
2.13
1.98
1.96
1.81
1.68
1.63
1.63
1.59
1.56
1.30
1.30
1.26
1.20
1.17
1.17
44.06
Unquoted Equity Securities
Class
Number of
securities
Number
of holders
Holders with
more than 20%
Options exercisable at $0.007 on or before 20
April 2019
10,000,000
1
D. J. Carmichael Pty Ltd
Renegade Exploration Limited
69
2018 Annual Report