ABN 92 114 187 978
Annual Report
30 June 2019
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
1
2
13
14
22
23
24
25
26
27
57
58
59
63
Renegade Exploration Limited
2019 Annual Report
CORPORATE DIRECTORY
Directors
Mr. Robert Kirtlan (Non-Executive Chairman)
Mr. Mark Wallace (Non-Executive Director)
Mr. Peter Voulgaris (Non-Executive Director)
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
Facsimile:
(+61 8) 9388 0097
Share Register
Automic Registry Services
Level 5, 126 Phillip Street,
Sydney NSW 2000
Telephone: (02) 9698 5414
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
Solicitors
Corrs Chambers Westgarth
Level 6, Brookfield Place Tower 2
123 St Georges Terrace
Perth WA 6000
Renegade Exploration Limited
1
2019 Annual Report
Operations Report
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. This program was then followed up with a second program consisting of 53 aircore holes for a
further 6,131m at the Ward, Mizna (South) and Millrose Extension prospects.
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
(Note: Coralie Jean tenements not part of the package, see below in “Acquisition Details”)
Renegade Exploration Limited
2
2019 Annual Report
Operations Report
Acquisition Details
The Company acquired an eighteen 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 was required to issue $400,000 in Renegade shares at a 10% discount to the 20 day
volume weighted average price on or 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.
The original terms of the Option Agreement (“Agreement”) required the Company to issue $400,000 worth of shares at a
10% discount to the twenty-day VWAP upon exercise of the Agreement. The Company renegotiated the Agreement as
follows:
Payment of $150,000;
The return of the Coralie Jean prospect to the vendor; and
A once only milestone issue of $300,000 worth of shares, at a 10% discount to the twenty-day VWAP
in the Company upon a decision to mine.
The exercise of the Option Agreement now means the Company has entered into a Joint Venture (JV) with Zebina on
terms (previously announced on 5 September 2017) comprising:
The Company has earned a full 75% interest in the JV;
The Company has full control over the JV;
Zebina is free carried to decision to mine; and
Zebina has an option to dilute to a 1% NSR upon decision to mine if it chooses not to contribute.
Figure 2: Current package of tenements
Renegade Exploration Limited
3
2019 Annual Report
Operations Report
Ward Prospect
At the Ward Prospect, the Company completed 19 holes for 2,207m in the second aircore drilling program. The holes were
drilled along strike from significant mineralisation identified in the inaugural aircore program earlier in 2018. Drilling was
undertaken within a 600m un-drilled corridor where 19 holes comprising 3 lines spaced 100m apart (Figure 2 and 3). Thick,
significant mineralisation was returned from multiple holes, the better intercepts include;
23m @ 1.38 g/t Au from 84m, including,
o
8m @ 2.04 g/t Au from 84m (YEAC0317)
20m @ 1.02 g/t Au from 88m (YEAC0313)
10m @ 0.95 g/t Au from 90m (YEAC0306)
60m @ 0.21 g/t Au from 60m (YEAC0312)
Figure 3. Location and drilling at the Ward and Mizina South prospects
The southern end of the mineralisation was previously interpreted to be closed off immediately north of a small dry lake.
The Company drilled a single line on the very northern-edge of the lake in July and intersected significant mineralisation
Renegade Exploration Limited
4
2019 Annual Report
Operations Report
including 6m @ 1.40 g/t Au from 82m and 4m @ 1.55 g/t Au from 61m. The Company determined the mineralisation to
likely be continuous and still open with a 600m un-drilled corridor which was the focus for the November program at Ward.
The corridor is immediately south of some of the best drilling intercepts at Yandal East including 13m @ 3.1 g/t Au from
61m. With only one third of the 600m corridor obscured by the lake, the November drilling focused on the easily accessible
400m south of the lake. The Company is excited by the results from this corridor and notably the thickness, including
intervals of 23m @ 1.38 g/t Au from 84m and 20m @ 1.02 g/t Au from 88m. These results confirm the prospectivity of
the previously un-drilled corridor and the Company plans to continue exploration in this area to determine if higher grade,
economic mineralisation can be discovered in the immediate vicinity.
Figure 4. Location of drilling and significant intercepts at Ward
Renegade Exploration Limited
5
2019 Annual Report
Operations Report
Mizina South
Mizina South is one of the most exciting targets drilled in the inaugural aircore program at Yandal East in July 2018. The
follow up program in November consisted of 15 holes for 1,717m. Holes were drilled on 4 new sections north and south
of the previously identified mineralisation with grades up to 5.74 g/t returned (Figure 2, 4 and 5). Some of the better results
include;
1m @ 5.74 g/t Au from 83m
1m @ 4.11 g/t Au from 113m
6m @ 1.67 g/t Au from 80m
o
4m @ 2.31 g/t Au from 80m
Figure 5. Location of drilling and significant intercepts at Mizina South
Renegade Exploration Limited
6
2019 Annual Report
Operations Report
The original Mizina target was 7km long extending 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. Prior to 2018 only one drill line within the entire 7km strike length had been completed,
returning an intersection of 4m @ 2.54 g/t Au that was never followed up. The July drilling identified significant
mineralisation at Mizina South including YEAC0131 that contained abundant sulphides and quartz veining over the last
30m of the hole and returned multiple assays over 1 g/t Au from 51m depth until the hole terminated in mineralisation at
128.5m a width of 75m downhole. The final 11.5m returned an average grade of 0.80 g/t Au with individual metres up to
2.74 g/t Au.
The November program has successfully delineated high grade mineralisation over 400m with values of 5.74 g/t and 4.11
g/t Au intercepted 200m and 100m south of YEAC0131. In addition 4m @ 2.31 g/t Au was intercepted 200m north of
YEAC0131 with 2m @ 1.36 g/t Au 100m north. Mineralisation at Mizina South remains open in both directions with the
potential for the discovery of high grade mineralisation in both directions. The Company is excited about the developing
potential of the Mizina South and the greater Mizina area and looks forward to completing further work in 2019.
Figure 6. Enlargement of drilling and significant intercepts at Mizina South
Renegade Exploration Limited
7
2019 Annual Report
Operations Report
Millrose Extension
Millrose Extension was first drilled in mid-2018 when three (3) lines separated by over 800m of strike length were
completed, as shown in Figure 6. 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
veining within a silicified felsic schist and 4m @ 0.31 g/t Au from 72m further up hole. The hole ended in mineralisation
and the hole immediately to the east encountered granite relatively shallow.
The November program consisted of 19 holes for 2,207m with 2 lines either side of YEAC0246 and an additional line
approximately 1,000m to the north, testing the same interpreted structure. The November drilling intersected a best result
of 1m @ 0.8 g/t Au from 102m on the southern-most line 200m south of the original mineralisation.
Millrose Extension remains a geologically interesting area with sulphide-bearing mafic schists, felsic schists and both
silicification and quartz veining increasing towards a granite body. The internal granite may be an important control on
mineralising fluids in the area. 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, the Celia Shear and other
structural complexities. The Millrose Deposit is held by Bowlane Nominees (WA) Limited and contains 309,000 oz of gold
@ 2.4 g/t gold.
Figure 7. Location of drilling an significant intercepts at Millrose Extension
Renegade Exploration Limited
8
2019 Annual Report
Operations Report
Table 1. Significant Intercepts from the Company’s inaugural drilling program
Hole Id
Sample Type
Prospect
Result
Comment
YEAC0286
YEAC0287
YEAC0287
YEAC0287
YEAC0287
YEAC0287
YEAC0287
YEAC0287
YEAC0287
YEAC0287
YEAC0289
YEAC0289
YEAC0289
YEAC0289
YEAC0289
YEAC0290
YEAC0290
YEAC0291
YEAC0291
YEAC0291
YEAC0292
YEAC0292
YEAC0294
YEAC0295
YEAC0295
YEAC0296
YEAC0296
YEAC0297
YEAC0298
YEAC0299
YEAC0299
YEAC0299
YEAC0299
YEAC0299
YEAC0300
YEAC0300
YEAC0300
YEAC0300
YEAC0300
YEAC0302
YEAC0302
YEAC0303
Individual
Individual
Individual
Individual
including
Individual
Individual
Individual
including
Individual
Individual
Individual
Individual
including
Individual
Individual
including
Individual
including
Individual
Individual
Individual
Individual
Individual
Individual
Mizina South
3m @ 0.69 g/t Au from 44m
Mizina South
4m @ 0.61 g/t Au from 43m
Mizina South
1m @ 0.62 g/t Au from 68m
Mizina South
3m @ 0.68 g/t Au from 76m
Mizina South
1m @ 1.27 g/t Au from 76m
Mizina South
1m @ 0.31 g/t Au from 88m
Mizina South
3m @ 0.32 g/t Au from 93m
Mizina South
3m @ 0.73 g/t Au from 98m
Mizina South
1m @ 1.19 g/t Au from 100m
Mizina South
1m @ 0.47 g/t Au from 106m
Mizina South
1m @ 0.94 g/t Au from 51m
Mizina South
1m @ 0.45 g/t Au from 79m
Mizina South
7m @ 0.66 g/t Au from 93m
Mizina South
2m @ 1.36 g/t Au from 93m
Mizina South
2m @ 0.33 g/t Au from 122m
Mizina South
6m @ 1.67 g/t Au from 80m
Mizina South
4m @ 2.31 g/t Au from 80m
Mizina South
5m @ 0.6 g/t Au from 64m
Mizina South
1m @ 1.33 g/t Au from 64m
Mizina South
1m @ 0.34 g/t Au from 96m
Mizina South
1m @ 0.39 g/t Au from 59m
Mizina South
1m @ 0.31 g/t Au from 105m
Mizina South
1m @ 4.11 g/t Au from 113m
Mizina South
1m @ 0.32 g/t Au from 68m
Mizina South
2m @ 0.3 g/t Au from 108m
Composite
Mizina South
4m @ 0.46 g/t Au from 78m
Individual
Individual
Mizina South
2m @ 0.34 g/t Au from 98m
Mizina South
1m @ 0.3 g/t Au from 103m
EOH mineralisation
Composite
Mizina South
4m @ 0.3 g/t Au from 64m
Composite
Mizina South
4m @ 0.61 g/t Au from 68m
Individual
Mizina South
1m @ 0.44 g/t Au from 77m
both
including
Individual
Individual
Individual
or
Individual
including
Composite
including
Composite
Mizina South
4m @ 1.72 g/t Au from 83m
Mizina South
1m @ 5.74 g/t Au from 83m
Mizina South
1m @ 0.55 g/t Au from 94m
Mizina South
3m @ 0.37 g/t Au from 84m
Mizina South
3m @ 0.42 g/t Au from 91m
Mizina South
10m @ 0.55 g/t Au from 91m
Mizina South
5m @ 0.79 g/t Au from 96m
Mizina South
2m @ 1.14 g/t Au from 96m
Ward
Ward
Ward
4m @ 0.48 g/t Au from 63m
1m @ 1.21 g/t Au from 66m
EOH mineralisation
4m @ 0.43 g/t Au from 84m
Renegade Exploration Limited
9
2019 Annual Report
Operations Report
Hole Id
Sample Type
Prospect
Result
Comment
YEAC0304
YEAC0304
YEAC0305
YEAC0305
YEAC0305
YEAC0306
YEAC0306
YEAC0306
YEAC0312
YEAC0312
YEAC0312
YEAC0313
YEAC0313
YEAC0314
YEAC0314
YEAC0314
YEAC0316
YEAC0317
YEAC0317
YEAC0317
YEAC0318
YEAC0318
YEAC0318
YEAC0336
Individual
Individual
Composite
Composite
Individual
both
including
Individual
Composite
Composite
or
Composite
Composite
Composite
Composite
Composite
Individual
both
including
Individual
Composite
Composite
Individual
Individual
Ward
Ward
Ward
Ward
Ward
Ward
Ward
Ward
Ward
Ward
Ward
Ward
Ward
Ward
Ward
Ward
Ward
Ward
Ward
Ward
Ward
Ward
Ward
1m @ 0.32 g/t Au from 75m
1m @ 0.31 g/t Au from 112m
EOH mineralisation
4m @ 0.37 g/t Au from 76m
4m @ 1.39 g/t Au from 88m
2m @ 0.52 g/t Au from 101m
14m @ 0.79 g/t Au from 90m
10m @ 0.95 g/t Au from 90m
1m @ 0.39 g/t Au from 128m
4m @ 0.55 g/t Au from 60m
12m @ 0.33 g/t Au from 76m
60m @ 0.21 g/t Au from 60m
4m @ 1.08 g/t Au from 68m
20m @ 1.02 g/t Au from 88m
4m @ 0.31 g/t Au from 81m
4m @ 0.72 g/t Au from 93m
2m @ 0.39 g/t Au from 105m
2m @ 0.43 g/t Au from 104m
23m @ 1.38 g/t Au from 84m
8m @ 2.04 g/t Au from 84m
1m @ 0.36 g/t Au from 116m
4m @ 0.38 g/t Au from 68m
4m @ 1.09 g/t Au from 84m
2m @ 0.64 g/t Au from 128m
Millrose Ext
1m @ 0.8 g/t Au from 102m
Table 1 lists the significant intercepts from the recent drilling at Yandal East. The intersections for Table 1 were calculated using a 0.2 g/t
Au cut off with a maximum of 1m of internal waste included and a minimum final value of 0.3 g/t Au. A sample from the aircore rig is
collected every metre and the entire sample is passed through a splitter with part of the sample going to a bucket and placed on the
ground. The other part is collected in a calico bag and placed alongside the bucket sample. The supervising geologist then has the option
to sample either a 4m composite or a 1m split based upon their observation of the sample. The sample type is specified in Table 1. Table
2 only shows a comparison of those holes that previously reported significant intercepts from composites that have changed as a result
of assaying re-splits.
YUKON BASE METAL PROJECT, CANADA
During 2019 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.
The permit is also subject to a five-year renewal. The Company completed all necessary and prerequisite actions and at
the time of releasing this report awaits confirmation from the Yukon Mines Department that the permit has been
extended.
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.
Renegade Exploration Limited
10
2019 Annual Report
Operations Report
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 2).
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
6.0
1,670,000
4.8
Darcy
Darin
Total
1.6
0.0
190,000
4.9
3,880,000
4.7
360,000
4.0
1.6
0.0
0.2
0.1
6,650,000
5,550,000
360,000
5.8
4.7
4.0
12,560,000
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
4.6
Note:
Cut off of 2% zinc and 1000mRL applied based on economic pit modelling
Table 2. JORC Code 2012 compliant mineral resource estimate
for the Yukon Base Metal Project
There is 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.
Renegade Exploration Limited
11
2019 Annual Report
Operations Report
Figure 10. Zinc in soil geochemistry results from samples collected over the entire Yukon Base Metal Project
CORPORATE
The Company had 712,626,638 ordinary shares on issue and cash and cash equivalents of A$0.8M at bank as at 30 June
2019.
The Company manages its costs in accordance with the projects it holds and the requirements these projects have for either
management or exploration funds. In December the Company CEO, Ben Vallerine, left the Company to take personal time
and is now retained on an as required basis to provide services to the Company’s two projects. The Company engages external
consultants with specific experience to its projects who provide advice as to how these projects are best managed.
The Company continues to assess new opportunities presented. The board remains focused on gold and base metal projects.
Renegade Exploration Limited
12
2019 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
E53/1548
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 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
13/10/2018
12/05/2021
N/A
06/05/2023
Tenement Schedule as at September 18, 2019
*The Company has a 100% interest in these specific claims and 90% in the remaining claims at the Yukon Base Metal Project
Renegade Exploration Limited
13
2019 Annual Report
Directors’ Report
The Directors present their report for Renegade Exploration Limited (“Renegade” or “the Company”) and its subsidiaries
(“the Group”) for the year ended 30 June 2019.
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 Vault Intelligence Limited (formerly Credo Resources Limited; appointed 30 November 2011),
Currie Rose Resources Inc (appointed 27 October 2015 and, in the last three years has been a director of RMG Limited
(appointed 29 April 2011, resigned 30 June 2019),
Mr. Peter Voulgaris
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 project manager for the Pegmont
Project for Vendetta Mining (TSX: VTT).
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.
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
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:
Renegade Exploration Limited
14
2019 Annual Report
Directors’ Report
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 $654,340
(2018: loss of $866,890).
DIVIDENDS
No dividend was paid or declared by the Group in the year and up to the date of this report.
CORPORATE STRUCTURE
Renegade Exploration Limited is a company limited by shares that is incorporated and domiciled in Australia.
SIGNIFICANT CHANGE OF AFFAIRS
There have been no significant change of affairs during the year ended 2019.
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 2019 (2018: no employees).
REVIEW OF OPERATIONS
Refer to the Operations Report preceding this Directors’ Report.
SIGNIFICANT EVENTS AFTER THE REPORTING DATE
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.
Renegade Exploration Limited
15
2019 Annual Report
Directors’ Report
SHARE OPTIONS
As at the date of this report, there were 46,568,498 options over ordinary shares (46,568,498 options at the date of this
report). The details of the options at the reporting date are as follows:
Number
16,568,498
15,000,000
15,000,000
Exercise
Price
$0.00754
$0.025
$0.035
Expiry Date
19 January 2020
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 10,000,000 options expired on 20/04/19. No options were exercised during the financial year.
Since the end of the financial year, no options have been issued or exercised.
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:
Number of Meetings
Number of Meetings
Name
Mr. Robert Kirtlan
Mr. Peter Voulgaris
Mr. Mark Wallace
Eligible
to Attend
4
4
4
Attended
4
4
4
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
Renegade Exploration Limited
16
2019 Annual Report
Directors’ Report
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 57 of this report. There were no non-audit services provided by the Company’s auditor during the year
ended 30 June 2019.
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.
Details of Key Management Personnel
Mr. Robert Kirtlan
Chairman
Mr. Peter Voulgaris
Non-Executive Director
Mr. Mark Wallace
Non-Executive Director
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. No remuneration consultants were used during
the year.
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
(cents)
2019
(0.09)
0.2
2018
(0.15)
1.1
2017
(0.17)
0.7
2016
(0.15)
0.7
2015
(16.04)
0.7
Renegade Exploration Limited
17
2019 Annual Report
Directors’ Report
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:
2019
Base Directors Consulting
Payments
Employment
Short term
Share Based
Post
Salary
Fees
Fees
- Options Superannuation
Total
Director
Mr. Robert Kirtlan
Mr. Peter Voulgaris2
Mr. Mark Wallace
Executive
Mr. Ben Vallerine
(resigned 14/12/18)
$
-
-
-
-
-
$
-
24,000
46,000
$
63,000
-
-
-
72,500
$
-
(27,250)
-
-
70,000
135,500
(27,250)
$
-
-
-
-
-
$
63,000
(3,250)
46,000
72,500
178,250
2018
Base Directors Consulting
Payments
Employment
Short term
Share Based
Post
Salary
Fees
Fees
- Options Superannuation
Total
$
$
$
Director
Mr. Robert Kirtlan
Mr. Peter Voulgaris*
Mr. Hugh Bresser*
Mr. Mark Wallace
Executive
Mr. Ben Vallerine
Ms. Beverley Nichols*
$
-
-
-
-
-
-
-
$
-
12,000
7,200
-
-
-
$
-
-
-
-
81,7501
27,2502
-
81,7501
145,000
24,000
(90,000)3
-
19,200
169,000
100,750
-
-
-
-
-
-
-
81,750
39,250
7,200
81,750
55,000
24,000
288,950
*Mr. Voulgaris was appointed on 24 November 2017, Mr. Bresser resigned on 24 November 2017, Ms.Nichols resigned on 31 August
2017.
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.
2During the 2018 year, 5 million options were approved by shareholders for Director Peter Voulgaris in General Meeting held on 26 April
2018. The fair value of options had been accrued as at 30 June 2018. As these options were not issued within the 12 month required
period, the share based expense accrual has been reversed in 2019.
3Reversal of accrued performance shares to Ben Vallerine. Issued in year ended 30 June 2017.
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 reporting periods of KMP are as
follows:
Renegade Exploration Limited
18
2019 Annual Report
Directors’ Report
Grant
Date
Grant
Expiry
Fair Value
Exercise
Total
Vested
%
Number
Date/Last
per
Price per
Value
Vested
30 June 2018
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 2019 (2018: Nil).
No Options were granted as part of a remuneration during the current financial year. Options were granted as part of a
remuneration package in the prior year. On resignation, any unvested options will be forfeited.
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 2019
Mr. Robert Kirtlan
Mr. Peter Voulgaris*
Mr. Mark Wallace
Mr. Ben Vallerine*
30 June 2018
Mr. Robert Kirtlan
Mr. Hugh Bresser*
Mr. Peter Voulgaris*
Mr. Mark Wallace
Mr. Ben Vallerine
Ms. Beverley Nichols*
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
-
48,100,000
13,333,334
7,000,000
4,877,620
-
43,600,000
13,333,334
666,667
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
7,000,000
-
48,100,000
(13,333,334)1
-
-
-
7,000,000
4,877,6202
-
4,500,000
48,100,000
-
-
13,333,3343
666,6672
*Mr. Voulgaris was appointed on 24 November 2017, Mr. Bresser resigned on 24 November 2017, Ms.Nichols resigned on 31 August 2017,
Mr. Vallerine resigned on 7 December 2018.
1 At date of resignation
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:
Renegade Exploration Limited
19
2019 Annual Report
Directors’ Report
30 June 2019
the year
compensation
year
year
the year
Balance at
Granted during
Exercised
Expired
Balance at
% vested
the start of
the year as
during the
during the
the end of
Mr. Robert Kirtlan
15,000,000
Mr. Peter Voulgaris
Mr. Mark Wallace
Mr. Ben Vallerine
30 June 2018
Mr. Robert Kirtlan
Mr. Hugh Bresser*
Mr. Peter Voulgaris*
Mr. Mark Wallace
Mr. Ben Vallerine*
Ms. Beverley Nichols*
-
15,000,000
-
-
-
-
-
-
-
-
-
-
-
15,000,000
-
-
15,000,000
-
-
-
-
-
-
-
-
-
-
-
-
- 15,000,000
100%
-
-
-
- 15,000,000
100%
-
-
-
- 15,000,000
100%
-
-
-
-
-
-
- 15,000,000
100%
-
-
-
-
-
-
*Mr. Voulgaris was appointed on 24 November 2017, Mr. Bresser resigned on 24 November 2017, Ms.Nichols resigned on 31 August 2017,
Mr. Vallerine resigned on 7 December 2018
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 former 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 left full time employment with the Company in December
2018 and provides services on a daily rate basis as required.
Non-Executive Directors
Mr. Peter Voulgaris is paid a base directors fee of $24,000 per annum.
Mr Kirtlan and Mr Wallace have consulting agreements to the Company. Mr Kirtlan’s agreement is for 12 months and
provides his services for a minimum of 10 days per month. The Fee for this service is $4,000 per month and a daily fee of
$1,500 for days in excess of 10 days per month. Mr Wallace’s agreement provides his services for a minimum of 2 days
per month. The Fee for this service is $2,000 per month and a daily fee of $1,000 for days in excess of 2 days per month
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
30 September 2019
Renegade Exploration Limited
20
2019 Annual Report
Directors’ Report
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
21
2019 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
22
2019 Annual Report
Renegade Exploration Limited
Statement of Profit or Loss and Other Comprehensive Income
for the year ended 30 June 2019
Notes
Consolidated
Revenues from operations
Interest revenue
Other income
Gain on sale of subsidiary
Profit on sale of asset
Government grant received
Revenue
Consultants and directors’ fees
Share based (payment) / reversal
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 / impairment
Impairment of PPE
Loss on revaluation of financial asset
Loss on sale of PPE
Other expenses
(Loss) from operations before income tax
Income tax expense
(Loss) from operations after tax attributable to members
of the parent entity
Other comprehensive income / (loss) net of tax
Items that may be reclassified subsequently to profit or loss
Foreign currency translation
Other comprehensive income / (loss) for the year
Total comprehensive income / (loss) for the year
attributable to members of the parent entity
Loss per share:
Basic loss per share (cents per share)
Diluted loss per share (cents per share)
2019
$
31,740
4,590
86,537
-
150,000
272,867
(173,399)
27,250
(33,389)
(35,148)
(29,360)
(3,551)
(29,564)
(178)
(30,952)
(43,365)
(2,885)
(389,124)
(143,223)
(17,500)
(170)
2018
$
7,217
45,455
-
3,060
-
55,732
(92,804)
(163,500)
(34,225)
(11,911)
(65,062)
(21,572)
(31,870)
(20)
(26,269)
(53,904)
(39,857)
(355,631)
-
-
-
(22,649)
(25,997)
(654,340)
(866,890)
-
-
(654,340)
(866,890)
114,043
114,043
21,323
21,323
(540,297)
(845,567)
(0.09)
(0.09)
(0.15)
(0.15)
5
14
10
6
7
18
22
22
The above statement of profit or loss and other comprehensive income should be read in conjunction with the accompanying notes.
Renegade Exploration Limited
23
2019 Annual Report
Renegade Exploration Limited
Statement of Financial Position as at 30 June 2019
CURRENT ASSETS
Cash and cash equivalents
Other receivables and prepayments
Assets classified as held for sale
Financial assets / Investment
TOTAL CURRENT ASSETS
NON CURRENT ASSETS
Property, plant and equipment
Other receivables
Deferred exploration and evaluation expenditure
Notes
Consolidated
2019
$
2018
$
857,785
2,280,396
65,777
-
82,500
76,093
17,168
-
1,006,062
2,373,657
-
244,911
158,576
228,330
2,998,345
2,260,374
19
8
9
10
11
13
14
TOTAL NON CURRENT ASSETS
3,243,256
2,647,280
TOTAL ASSETS
4,249,318
5,020,937
CURRENT LIABILITIES
Trade and other payables
Liabilities classified as held for sale
15(a)
103,160
-
347,146
3,917
TOTAL CURRENT LIABILITIES
103,160
351,063
NON CURRENT LIABILITIES
Provisions
15(b)
244,911
228,330
TOTAL NON CURRENT LIABILITIES
-
228,330
TOTAL LIABILITIES
NET ASSETS
EQUITY
Contributed equity
Reserves
Accumulated losses
TOTAL EQUITY
348,071
579,393
3,901,247
4,441,544
16
18
17
44,012,408
44,012,408
3,681,911
3,567,868
(43,793,072)
(43,138,732)
3,901,247
4,441,544
The above statement of financial position should be read in conjunction with the accompanying notes.
Renegade Exploration Limited
24
2019 Annual Report
Renegade Exploration Limited
Statement of Cash Flows for the year ended 30 June 2019
Notes
Consolidated
2019
$
2018
$
CASH FLOWS FROM OPERATING ACTIVITIES
Payments to suppliers and employees
Interest received
Other income
(610,660)
(225,987)
31,740
154,590
7,218
45,455
NET CASH FLOWS (USED IN) OPERATING ACTIVITIES
19(b)
(424,330)
(173,314)
CASH FLOWS FROM INVESTING ACTIVITIES
Payments for exploration & evaluation
Payment for PPE
Cash proceeds from sale of PPE
(1,000,281)
(526,044)
-
2,000
(2,369)
3,060
NET CASH FLOWS (USED IN) INVESTING ACTIVITIES
(998,281)
(525,353)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issue of shares
Transaction costs of issue of shares
NET CASH FLOWS PROVIDED BY FINANCING
ACTIVITIES
-
-
-
2,000,000
(151,596)
1,848,404
Net increase / (decrease) in cash and cash equivalents
(1,422,611)
1,149,737
Cash and cash equivalents at beginning of year
2,280,396
1,130,659
CASH AND CASH EQUIVALENTS AT END OF YEAR
19(a)
857,785
2,280,396
During the year there was no Non Cash Investing or Financing activity except for the sale of the McLeery Project for
$100,000 received in shares of Rafaella resources Limited (Refer Note 5)
The above statement of cash flows should be read in conjunction with the accompanying notes.
Renegade Exploration Limited
25
2019 Annual Report
Renegade Exploration Limited
Statement of Changes in Equity for the year ended 30 June 2019
Consolidated
At 1 July 2018
(Loss) for the year
Other comprehensive income / (loss)
Total comprehensive income / (loss) for the year
Transactions with owners in their capacity as
owners
Share issue
Transaction costs on share issue
Share based payments
At 30 June 2019
Consolidated
At 1 July 2017
(Loss) for the year
Other comprehensive income / (loss)
Total comprehensive income / (loss) for the year
Transactions with owners in their capacity as
owners
Share issue
Transaction costs on share issue
Share based payments
At 30 June 2018
Issued
Capital
$
Accumulated
Losses
$
Share
Based
Payment
Reserves
$
Foreign
Currency
Translation
Reserves
$
Total
$
44,012,408
(43,138,732)
4,118,528
(550,660)
4,441,544
-
-
-
-
-
(654,340)
-
(654,340)
-
-
-
-
-
-
-
-
-
(654,340)
114,043
114,043
114,043
(540,297)
-
-
-
-
-
-
44,012,408
(43,793,072)
4,118,528
(436,617)
3,901,247
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
The above statement of changes in equity should be read in conjunction with the accompanying notes.
Renegade Exploration Limited
26
2019 Annual Report
Renegade Exploration Limited
Notes to the Financial Statements for the financial year ended 30 June 2019
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 2019 was authorised for issue in accordance with a resolution of the Directors
on 30 September 2019.
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 2019, the Group incurred a loss before tax of $654,340 (2018: loss of $866,890) and
incurred net cash outflows of $1,422,611 (2018: $1,149,737 net inflows). At 30 June 2019, the Group had net
current assets of $902,902 (2018: $2,022,594).
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
27
2019 Annual Report
Renegade Exploration Limited
Notes to the Financial Statements for the financial year ended 30 June 2019
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, modified where applicable by the measurement of fair value of selected non-current assets,
financial assets and financial liabilities. The shares in Rafaella resources are carried at fair value and not at
historical cost.
The financial report is presented in Australian dollars.
(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 and Revised Accounting Standards Adopted by the Group
The Group has adopted AASB 15 Revenue from Contracts with Customers and AASB 9 Financial Instruments
which became effective for financial reporting periods commencing on or after 1 January 2018.
AASB 15 Revenue from contracts with customers
AASB 15 replaces AASB 118 Revenue, AASB 111 Construction Contracts and several revenue-related
Interpretations. AASB 15 establishes a five-step model to account for revenue arising from contracts with
customers and requires that revenue to be recognised at an amount that reflects the consideration to which an
entity expects to be entitled in exchange for transferring goods or services to a customer.
The Group has applied the new Standard effective from 1 July 2018 using the modified retrospective approach.
Under this method, the cumulative effect of initial application is recognised as an adjustment to the opening balance
of retained earnings at 1 July 2018 and comparatives are not restated.
The adoption of AASB 15 does not have a significant impact on the Group as the Group does not currently have
any revenue from customers.
AASB 9 Financial Instruments
AASB 9 Financial Instruments replaces AASB 139 Financial Instruments: Recognition and Measurement for annual
periods beginning on or after 1 January 2018, bringing together all three aspects of the accounting for financial
instruments: classification and measurement, impairment, and hedge accounting.
As a result of adopting AASB 9 Financial Instruments, the Group has amended its financial instruments accounting
policies to align with AASB 9. AASB 9 makes major changes to the previous guidance on the classification and
measurement of financial assets and introduces an ‘expected credit loss’ model for impairment of financial assets.
There were no financial instruments which the Group designated at fair value through profit or loss under AASB
139 that were subject to reclassification. The Board assessed the Group’s financial assets and determined the
application of AASB 9 does not result in a change in the classification of the Group’s financial instruments.
The adoption of AASB 9 does not have a significant impact on the financial report. However the investment held
in Rafaella Resources Limited has been designated at fair value through profit or loss (FVPL). Refer Note 3(z).
Renegade Exploration Limited
28
2019 Annual Report
Renegade Exploration Limited
Notes to the financial statements for the financial year ended 30 June 2019
(c) New and revised Accounting Standards for Application in Future Periods
AASB 16: Leases applies to annual reporting periods beginning on or after 1 January 2019.
Interpretation 4 Determining whether an Arrangement
This Standard supersedes AASB 117 Leases,
contains a Lease, AASB intrpretation 115 Operating Leases-Incentives and AASB intrpretation 127 Evaluating the
Substance of Transactions
Involving the Legal Form of lease. AASB 16 sets out the principles for the recognition,
measurement, presentation and disclosure of leases and requires lessees to account for all leases under a single on-
balance sheet model similar to the accounting for finance leases under AASB 117.
The key features of AASB 16 are as follows:
- 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 the lease are initially measured on a present value basis. The
lease payments (including inflation-linked payments), and
measurement
also includes payments to be mad in optional periods if the lessee is reasonably certain to exercise
an option to extend to lease, or not to exercise an option to terminate the lease.
includes non-cancellable
- AASB 16 contains disclosure requirements for leases.
The Group is yet to undertake a detailed assessment of the impact of AASB 16. However, based on the Group’s preliminary
assessment, the standard is not expected to have a material impact on the transactions and balances recognised in the
financial statements. The Company shares office premises with Vault Intelligence Limited and Vault Intelligence charges
the Company a share of rent on a periodical basis. There is no long term agreement with Vault Intelligence, hence AASB
16 has no material impact on the financial report.
Other standards not yet applicable
There are no other standards that are not yet effective and that would be expected to have a material impact on the entity
in the current or future reporting periods and on foreseeable future transactions.
(d) 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 12.
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 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.
Renegade Exploration Limited
29
2019 Annual Report
Renegade Exploration Limited
Notes to the financial statements for the financial year ended 30 June 2019
Deconsolidation of Subsidiary
Subsidiaries are entities controlled by the company. The Company 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. The financial statements of subsidiaries are included in the consolidated financial statements from the date that
control commences until the date that control ceases. As a result of the sale of its wholly owned subsidiary, Renegade
derecognises the assets and liabilities of the subsidiary, any non-controlling interests and the other components of equity
related to the subsidiary. Any resulting gain or loss is recognised in profit or loss. During the year, the Group sold the
McCleery Project and deconsolidated its Canadian subsidiary Overland BC Limited. The net gain on sale of subsidiary
recognised in profit or loss, amounted to $86,537 as disclosed in Note 5.
(e)
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.
Renegade Exploration Limited
30
2019 Annual Report
Renegade Exploration Limited
Notes to the financial statements for the financial year ended 30 June 2019
(f)
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.
(g)
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
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.
(h)
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.
Renegade Exploration Limited
31
2019 Annual Report
Renegade Exploration Limited
Notes to the financial statements for the financial year ended 30 June 2019
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.
(i)
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.
(j)
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
Renegade Exploration Limited
32
2019 Annual Report
Renegade Exploration Limited
Notes to the financial statements for the financial year ended 30 June 2019
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.
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.
(k)
Assets held for sale and disposal groups
Non-current assets held for sale and disposal groups are presented separately in the current section of statement of
financial position when the following criteria is met: the group is committed to selling the asset or disposal group, an active
plan of sale has commenced, and in the judgement of Group management it is highly probable that the sale will be
completed within 12 months. Immediately before the initial classification of the assets and disposal groups as held for sale,
the carrying amounts of the assets (or all the assets and liabilities in the disposal groups) are measured in accordance with
the applicable accounting policy. Assets held for sale and disposal groups are subsequently measured at the lower of their
carrying amount and fair value less cost to sell. Assets held for sale are no longer amortised or depreciated.
(l)
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.
(m)
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.
(n)
Revenue Recognition
Interest income
Interest income is recognised using the effective interest method. The ‘effective interest rate’ is the rate that exactly
discounts estimated future cash payments or receipts through the expected life of the financial instrument to:
- The gross carrying amount of the financial asset; or
- The amortised cost of the financial liability.
In calculating interest income and expense, the effective interest rate is applied to the gross carrying amount of the asset
(when the asset is not credit-impaired) or to the amortised cost of the liability.
Renegade Exploration Limited
33
2019 Annual Report
Renegade Exploration Limited
Notes to the financial statements for the financial year ended 30 June 2019
(o)
Grant Revenue
Government grants are recognised at fair value where there is reasonable assurance that the grant will be received, and
all grant conditions will be met. Grants relating to expense items are recognised as income over the periods necessary to
match the grant to the costs they are compensating. Grants relating to assets are credited to deferred income at fair value
and are credited to income over the expected useful life of the asset on a straight-line basis.
(p)
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);
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.
(q)
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 27.
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.
Renegade Exploration Limited
34
2019 Annual Report
Renegade Exploration Limited
Notes to the financial statements for the financial year ended 30 June 2019
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 22).
(r)
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.
(s)
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.
(t)
Foreign currency translation
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;
Renegade Exploration Limited
35
2019 Annual Report
Renegade Exploration Limited
Notes to the financial statements for the financial year ended 30 June 2019
•
•
•
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.
(u)
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.
(v)
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.
(w)
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.
Renegade Exploration Limited
36
2019 Annual Report
Renegade Exploration Limited
Notes to the financial statements for the financial year ended 30 June 2019
(x)
Fair Value Hierarchy
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 other than shares in Rafaella Resources Limited which are Tier 1 assets.
(y)
Fair Value of Assets and Liabilities
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.
(z)
Financial Instruments
Recognition, initial measurement and derecognition
Financial assets and financial liabilities are recognised when the Group becomes a party to the contractual provisions of
the financial instrument. Financial instruments (except for trade receivables) are measured initially at fair value adjusted
by transactions costs, except for those carried “at fair value through profit or loss”, in which case transaction costs are
expensed to profit or loss. Where available, quoted prices in an active market are used to determine the fair value. In other
Renegade Exploration Limited
37
2019 Annual Report
Renegade Exploration Limited
Notes to the financial statements for the financial year ended 30 June 2019
circumstances, valuation techniques are adopted. Subsequent measurement of financial assets and financial liabilities are
described below.
Trade receivables are initially measured at the transaction price if the receivables do not contain a significant financing
component in accordance with AASB 15.
Financial assets are derecognised when the contractual rights to the cash flows from the financial asset expire, or when
the financial asset and all substantial risks and rewards are transferred. A financial liability is derecognised when it is
extinguished, discharged, cancelled or expires.
Classification and subsequent measurement
Financial assets
Except for those trade receivables that do not contain a significant financing component and are measured at the
transaction price in accordance with AASB 15, all financial assets are initially measured at fair value adjusted for transaction
costs (where applicable).
For the purpose of subsequent measurement, financial assets other than those designated and effective as hedging
instruments, are classified into the following categories upon initial recognition:
amortised cost;
fair value through other comprehensive income (FVOCI); and
fair value through profit or loss (FVPL).
Classifications are determined by both:
The contractual cash flow characteristics of the financial assets; and
The entities business model for managing the financial asset.
Financial assets at amortised cost
Financial assets are measured at amortised cost if the assets meet the following conditions (and are not designated as
FVPL):
they are held within a business model whose objective is to hold the financial assets and collect its contractual
cash flows; and
the contractual terms of the financial assets give rise to cash flows that are solely payments of principal and
interest on the principal amount outstanding.
After initial recognition, these are measured at amortised cost using the effective interest method. Discounting is omitted
where the effect of discounting is immaterial. The Group’s cash and cash equivalents, trade and most other receivables
fall into this category of financial instruments.
Financial assets at fair value through other comprehensive income
The Group measures debt instruments at fair value through OCI if both of the following conditions are met:
The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments
of principal and interest on the principal amount outstanding; and
The financial asset is held within a business model with the objective of both holding to collect contractual cash
flows and selling the financial asset.
For debt instruments at fair value through OCI, interest income, foreign exchange revaluation and impairment losses or
reversals are recognised in the statement of profit or loss and computed in the same manner as for financial assets
measured at amortised cost. The remaining fair value changes are recognised in OCI.
Upon initial recognition, the Group can elect to classify irrevocably its equity investments as equity instruments designated
at fair value through OCI when they meet the definition of equity under AASB 132Financial Instruments: Presentation and
are not held for trading.
Financial assets at fair value through profit or loss (FVPL)
Financial assets at fair value through profit or loss include financial assets held for trading, financial assets designated
upon initial recognition at fair value through profit or loss, or financial assets mandatorily required to be measured at fair
Renegade Exploration Limited
38
2019 Annual Report
Renegade Exploration Limited
Notes to the financial statements for the financial year ended 30 June 2019
value. Financial assets are classified as held for trading if they are acquired for the purpose of selling or repurchasing in
the near term.
Financial liabilities
Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or loss, loans and
borrowings, payables, or as derivatives designated as hedging instruments in an effective hedge, as appropriate.
Financial liabilities are initially measured at fair value, and, where applicable, adjusted for transaction costs unless the
Group designated a financial liability at fair value through profit or loss.
Subsequently, financial liabilities are measured at amortised cost using the effective interest method except for derivatives
and financial liabilities designated at FVPL, which are carried subsequently at fair value with gains or losses recognised in
profit or loss.
All interest-related charges and, if applicable, gains and losses arising on changes in fair value are recognised in profit or
loss.
Impairment
From 1 July 2018, the Group assesses on a forward looking basis the expected credit losses associated with its debt
instruments carried at amortised cost and FVOCI. The impairment methodology applied depends on whether there has
been a significant increase in credit risk. For trade receivables, the Group applies the simplified approach permitted by
AASB, which requires expected lifetime losses to be recognised from initial recognition of the receivables.
Comparative information
The Group has applied AASB 9 Financial Instruments retrospectively, but has elected not to restate comparative
information. As a result, the comparative information provided continues to be accounted for in accordance with the Group’s
previous accounting policy.
Classification
Until 30 June 2018, the group classified its financial assets in the following categories:
financial assets at fair value through profit or loss;
loans and receivables;
held-to-maturity investments; and
available-for-sale financial assets.
The classification depended on the purpose for which the investments were acquired. Management determined the
classification of its investments at initial recognition and, in the case of assets classified as held-to-maturity, re-evaluated
this designation at the end of each reporting period.
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.
Renegade Exploration Limited
39
2019 Annual Report
Renegade Exploration Limited
Notes to the financial statements for the financial year ended 30 June 2019
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
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 26.
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.
Gain on sale of Subsidiary
Fair value of consideration received
Less: Net Assets of the subsidiary as at date of sale
Gain on sale of subsidiary
Consolidated
2019
$
100,000
(13,463)
86,537
2018
$
-
-
-
Renegade Exploration Limited
40
2019 Annual Report
Renegade Exploration Limited
Notes to the financial statements for the financial year ended 30 June 2019
6.
Other expenses
General office expenses
Printing and stationary
Telecommunications
Others
7.
Income Tax
(a) Income tax expense
Current tax
Deferred tax
(b) Numerical reconciliation between aggregate tax
expense/(benefit) 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 / (benefits) and the product of
accounting loss 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% (2018:27.5%)
Allowable deductions
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
2019
$
1,084
896
207
20,462
22,649
2018
$
1,300
8,021
1,433
15,243
25,997
Consolidated
2019
$
2018
$
-
-
-
-
-
-
(654,340)
(179,944)
(71,096)
251,040
(866,890)
(238,395)
-
238,395
-
-
824,545
626,324
-
-
(824,545)
(626,324)
-
-
Losses available to offset against future taxable income (at 27.5%)
12,092,041
12,493,587
Foreign exchange loss
Share issue cost deductible over five years
Accrued expenses
(120,070)
(151,432)
44,690
9,160
66,637
58,532
12,025,821
12,467,324
Renegade Exploration Limited
41
2019 Annual Report
Renegade Exploration Limited
Notes to the financial statements for the financial year ended 30 June 2019
Consolidated
2019
$
2018
$
Income Tax (continued)
Deferred tax assets offset against deferred tax liabilities
(824,545)
(626,324)
Deferred tax assets not brought to account as realisation is not
regarded as probable
Deferred tax asset recognised
Unused tax losses1
Potential tax benefit of unused tax losses not recognised
at 27.5% (2018: 27.5%)
1 Decrease in unused tax losses is due to movement in exchange rates.
The benefit for tax losses will only be obtained if:
(11,201,276)
(11,841,000)
-
-
40,731,912
43,058,183
11,201,276
11,841,000
(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.
The unused tax losses include losses from Australian Parent and the Canadian Subsidiary. The unused tax losses and the
unrecognised Deferred Tax Assets on them have decreased as compared to 30 June 2018 due to the movement in exchange
rates between Australian Dollar and Canadian Dollar
(e) Tax consolidation
Renegade Exploration has not formed a tax consolidation group and there is no tax sharing agreement.
8.
Other Receivables and Prepayments - Current
GST / VAT receivable
Other Receivable
Prepayments
Consolidated
2019
$
25,031
875
39,871
65,777
2018
$
29,264
-
46,829
76,093
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.
Renegade Exploration Limited
42
2019 Annual Report
Renegade Exploration Limited
Notes to the financial statements for the financial year ended 30 June 2019
9.
Assets classified as held for sale
McCleery Project
Cost
Less Provision for impairment
Net carrying amount
10.
Financial asset / Investment
Investment in Rafaella Resources Limited
Loss on revaluation
Net carrying amount
11.
Property, Plant and Equipment
Plant and Equipment
Cost
Accumulated depreciation
Less: Accumulated impairment
Net carrying amount
Camp Buildings
Cost
Accumulated depreciation
Less: Accumulated impairment
Net carrying amount
Total property, plant and equipment
Cost
Accumulated depreciation
Less: Accumulated impairment
Net carrying amount
Consolidated
2019
$
-
-
-
Consolidated
2019
$
100,000
(17,500)
82,500
2018
$
17,168
-
17,168
2018
$
-
-
Consolidated
2019
$
149,735
(104,440)
(45,295)
2018
$
141,966
(88,764)
-
-
53,202
360,356
335,958
(262,428)
(230,584)
(97,928)
-
-
105,374
510,091
477,924
(366,868)
(319,348)
(143,223)
-
-
158,576
Renegade Exploration Limited
43
2019 Annual Report
Renegade Exploration Limited
Notes to the financial statements for the financial year ended 30 June 2019
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
Less: Accumulated impairment
Net exchange differences on translation
Carrying amount at end of year
Camp Buildings
Carrying amount at beginning of year
Additions
Depreciation expense
Less: Accumulated impairment
Net exchange differences on translation
Carrying amount at end of year
Total property, plant and equipment
Consolidated
2019
$
53,202
-
(11,880)
(45,295)
3,973
-
2018
$
55,807
2,369
(5,505)
531
53,202
Consolidated
2019
$
2018
$
105,374
115,639
-
(28,046)
(97,928)
20,600
-
-
-
(11,366)
1,101
105,374
158,576
Depreciation expense on Yukon plant and equipment is capitalised to exploration assets.
12.
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 (d). Details of subsidiaries are as follows:
Name
Country of incorporation
% Equity Interest
Overland Resources Yukon Limited
Canada
Overland Resources (BC) Limited
Canada
2019
100%
-
2018
100%
100%
13.
Prepayments – Non Current
Consolidated
Advance to supplier
2019
$
244,911
244,911
2018
$
228,330
228,330
Other receivables represent an advance for demobilisation. An equivalent amount has been provided for the costs., refer
note 15(b).
Consolidated
Renegade Exploration Limited
44
2019 Annual Report
Renegade Exploration Limited
Notes to the financial statements for the financial year ended 30 June 2019
14.
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
2019
$
2018
$
37,561,336
34,144,501
(34,562,991)
(31,884,127)
2,998,345
2,260,374
2,260,374
1,871,201
1,017,039
742,989
(389,124)
(355,631)
-
110,056
(17,168)
18,983
2,998,345
2,260,374
1In January 2018, the Company executed a binding term sheet with Rafaella Resources Ltd for sale of its McCleery Project.
Therefore, the McCleery Project was 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.
The deferred exploration and evaluation expenditure of $2,998,345 as at 30 June 2019 includes $1,632,740 (CAD$1.5
million) for the Yukon base metal project in Yukon Canada. The land use permit for the Yukon tenements expired on 17
September 2019. The Company is in the process of renewing the permit and have applied to the Yukon Mines
Department for renewal for the next 5 years. The Directors are confident that the permit will be renewed.
15.
Current Liabilities
(a)
Trade payables
Trade and other payables
Accruals
Consolidated
2019
$
2018
$
69,850
33,310
103,160
130,384
216,762
347,146
Due to the short term nature of these payables, their carrying value is assumed to approximate their fair value.
(b)
Provisions (Non-current)
Provision for demobilisation costs (refer note 13)
244,911
244,911
228,330
228,330
Renegade Exploration Limited
45
Consolidated
2019 Annual Report
Renegade Exploration Limited
Notes to the financial statements for the financial year ended 30 June 2019
16.
Contributed Equity
(a) Issued and paid up capital
Ordinary shares fully paid
2019
$
2018
$
44,012,408
44,012,408
2019
Number of
shares
2018
Number of
$
shares
$
(b) Movements in ordinary shares on issue
Balance at beginning of year
712,626,638
44,012,408
514,239,963 42,063,930
Share Issue at $0.00604 on 09 October 2017
Share Issue at $0.011 on 12 March 2018
Share Issue at $0.011 on 30 April 2018
Transaction costs on share issue
(c) Ordinary shares
-
-
-
-
-
-
-
-
16,568,498
100,074
132,702,115
1,459,723
49,116,062
540,277
-
(151,596)
712,626,638
44,012,408
712,626,638 44,012,408
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
The Group’s capital comprises share capital and reserves less accumulated losses amounting to $3,901,247 at 30 June
2019 (2018: $4,441,544). 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 26 for further information on the Group’s financial risk management policies.
(e) Share options
At 30 June 2019, there were 46,568,498 unissued ordinary shares under options (2018: 56,568,498 options). During the
financial year 10 million 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 27.
17.
Accumulated losses
Movements in accumulated losses were as follows:
At 1 July
Loss for the year
At 30 June
Consolidated
2019
$
2018
$
(43,138,732)
(42,271,842)
(654,340)
(866,890)
(43,793,072)
(43,138,732)
Renegade Exploration Limited
46
2019 Annual Report
Renegade Exploration Limited
Notes to the financial statements for the financial year ended 30 June 2019
18.
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
2019
$
2018
$
4,118,528
4,118,528
(436,617)
(550,660)
3,681,911
3,567,868
4,118,528
3,855,028
-
263,500
4,118,528
4,118,528
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 27(b) for details of share based payments during the financial year and prior year.
Foreign currency translation reserve
At 1 July
Foreign currency translation
Balance at end of year
Consolidated
2019
$
2018
$
(550,660)
(571,983)
114,043
21,323
(436,617)
(550,660)
The foreign currency translation reserve is used to record the currency difference arising from the translation of the financial
statements of the foreign operation.
19.
Cash and Cash Equivalents
Consolidated
(a) Reconciliation of cash
Cash balance comprises:
Cash and cash equivalents
2019
$
2018
$
857,785
2,280,396
Renegade Exploration Limited
47
2019 Annual Report
Renegade Exploration Limited
Notes to the financial statements for the financial year ended 30 June 2019
19 Cash and Cash Equivalents (continued)
Consolidated
(b) Reconciliation of the net loss after tax to the net
cash flows from operations
Net loss after tax
Adjustments for:
Depreciation
Share Based Payment / (reversal)
Loss on revaluation of financial asset
Gain on sale of subsidiary
Provision for impairment of exploration expenditure
Loss on sale of fixed assets
Impairment of PPE
Changes in operating assets and liabilities:
Decrease / (Increase) in other receivables/prepayments
(Decrease ) / Increase in trade and other payables
Net cash flow used in operating activities
20.
Expenditure commitments
2019
2018
$
$
(654,340)
(866,890)
178
20
(27,250)
163,500
17,500
(86,537)
389,124
170
143,223
-
-
355,631
(3,060)
10,316
(216,714)
(22,128)
199,613
(424,330)
(173,314)
(a) Expenditure commitments
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
2019
$
2018
$
203,000
185,000
-
-
203,000
185,000
41,248
41,248
-
-
21.
Subsequent events
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 Group, the results of those operations, or the state of affairs of the Group in future
financial years.
Renegade Exploration Limited
48
2019 Annual Report
Renegade Exploration Limited
Notes to the financial statements for the financial year ended 30 June 2019
Consolidated
2019
$
2018
$
22.
Loss per share
Loss used in calculating basic and dilutive EPS
(654,340)
(866,890)
Number of Shares
2019
2018
Weighted average number of ordinary shares used in
calculating basic earnings / (loss) per share:
712,626,638
574,424,609
Effect of dilution:
Share options
Adjusted weighted average number of ordinary
shares used in calculating diluted loss per share:
Basic and Diluted loss per share (cents per share)
-
-
712,626,638
574,424,609
(0.09)
(0.15)
There is no impact from the 46,568,498 options outstanding at 30 June 2019 (2018: 56,568,498 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.
23.
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
24.
Key Management Personnel Disclosures
Consolidated
2019
$
2018
$
31,847
31,847
34,225
34,225
(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, resigned 7 December 2018
(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:
Renegade Exploration Limited
49
2019 Annual Report
Renegade Exploration Limited
Notes to the financial statements for the financial year ended 30 June 2019
Short term employee benefits
Share based payments
Total remuneration
25.
Related Party Disclosures
Consolidated
2019
$
2018
$
205,500
(27,250)
188,200
73,500
178,250
261,700
The ultimate parent entity is Renegade Exploration Limited. Refer to Note 12 Investments in subsidiaries for a list of all
subsidiaries.
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 $24,984.
There were no other related party disclosures for the year ended 30 June 2019 (2018: Nil).
26.
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 2019 and 30 June 2018, 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.
Renegade Exploration Limited
50
2019 Annual Report
Renegade Exploration Limited
Notes to the financial statements for the financial year ended 30 June 2019
Cash and cash equivalents
Interest rate sensitivity
Consolidated
2019
$
2018
$
857,785
2,280,396
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.
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
2019
$
8,578
(8,578)
2018
$
22,804
(22,804)
Increase/(Decrease)
2019
$
8,578
(8,578)
2018
$
22,804
(22,804)
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 2018.
(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 2019, 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 2019 (2018: Nil).
(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
2019
2018
Renegade Exploration Limited Australia
Loan to subsidiary Overland Resources Yukon Limited (in CAD), net of
provision for impairment
Loan to subsidiary Overland Resources Yukon Limited (in AUD), net of
provision for impairment
-
-
1,692,562
1,717,622
Renegade Exploration Limited
51
2019 Annual Report
Renegade Exploration Limited
Notes to the financial statements for the financial year ended 30 June 2019
Percentage shift of the AUD / CAD exchange rate
Total effect on comprehensive loss of positive movements
Total effect on comprehensive loss of negative movements
(e) Fair Value
A$
-
-
10%
A$
190,846
(156,147)
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
Aggregate Net Fair
Carrying Amount in
Aggregate Net Fair
the Financial
Statements
2019
$
Value
2019
$
the Financial
Statements
2018
$
Value
2018
$
Financial Assets
Cash Assets
Receivables
Investment in shares
Financial Liabilities
Payables
857,785
25,906
82,500
857,785
25,906
82,500
2,280,396
29,264
-
2,280,396
29,264
-
103,160
103,160
351,063
351,063
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.
Share Based Payment Plans
27.
(a) Recognised share based payment expenses
Total expenses arising from share based payment transactions recognised during the year as part of share based payment
expense were as follows:
Shares Issued
16,568,498 Shares issued in pursuant to the option to
purchase 75% of the Yandal East gold project
Options Issued
Options issued pursuant to the option to purchase 75% of the
Yandal East gold project
Options issued to Directors
Consolidated
2019
$
2018
$
-
-
-
-
-
100,073
100,073
100,0002
163,500
263,500
2 16,568,498 options issued for Yandal East Option were valued at a deemed value of $100,000.
Renegade Exploration Limited
52
2019 Annual Report
Renegade Exploration Limited
Notes to the financial statements for the financial year ended 30 June 2019
(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:
2019
Grant
Expiry date Exercise
Balance at
Granted
Exercised
Expired
Balance at
Exercisable at
date
price
start of the
during the
during the
during the
end of the
end of the year
year
year
year
year
year
Number
Number
Number
Number
Number
Number
26/04/18 31/03/21
$0.025
15,000,000
26/04/18 31/03/21
$0.035
15,000,000
30,000,000
Weighted remaining contractual
life (years)
2.75
Weighted average exercise price
$0.03
-
-
-
-
-
2018
-
-
-
-
-
-
15,000,000
15,000,000
15,000,000
15,000,000
30,000,000
30,000,000
1.75
1.75
$0.03
$0.03
Grant
Expiry date Exercise
Balance at
Granted
Exercised
Expired
Balance at
Exercisable at
date
price
start of the
during the
during the
during the
end of the
end 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
$0.03
$0.03
During the 2019 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
53
2019 Annual Report
Renegade Exploration Limited
Notes to the financial statements for the financial year ended 30 June 2019
(c) Other share based payments
The table below summaries options granted to suppliers:
2019
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 16,568,498
Weighted remaining contractual
life (years)
26,568,498
1.27
-
-
-
-
-
-
(10,000,000)
-
-
-
16,568,498
16,568,498
(10,000,000) 16,568,498
16,568,498
0.56
0.56
Weighted average exercise price
$0.0073
$0.0075
$0.0075
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
1.27
1.27
Weighted average exercise price
$0.007
$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.
Yandal East Gold Project – Acquisition Terms
28.
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. These terms were amended on 8 April 2019. The new terms
of the 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.
Renegade Exploration Limited
54
2019 Annual Report
Renegade Exploration Limited
Notes to the financial statements for the financial year ended 30 June 2019
3. Renegade is required to undertake A$350,000 worth of expenditure on the Project within the 18 month option
period. Renegade has fulfilled this obligation.
Execution Phase:
4. During the 2019 financial year, Renegade has exercised the option and paid $150,000.
Decision to Mine
5.
If Renegade makes a decision to commence commercial mining operations of a deposit within the
Tenements, Renegade will issue $300,000 worth of Renegade Shares at an issue price equal to a 10%
discount to the 20 day VWAP of Renegade Shares
Contingent Liabilities
29.
There are no known contingent liabilities as at 30 June 2019 (2018: Nil).
30. 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 2019, the
total non-current assets in Australia and Canada are $1,365,605 and $1,877,641 respectively (30 June 2018: $713,993
and $1,933,287 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
31.
Dividends
2019
$
2018
$
1,001,233
2,346,276
4,839
27,381
1,365,605
713,993
1,877,641
1,933,287
4,249,318
5,020,937
97,643
5,517
336,347
14,716
-
244,911
348,071
-
228,330
579,393
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 2019 (2018: Nil). The balance of the franking account as at 30 June 2019 is Nil (2018: Nil).
Renegade Exploration Limited
55
2019 Annual Report
Renegade Exploration Limited
Notes to the financial statements for the financial year ended 30 June 2019
32.
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
2019
$
2018
$
1,001,232
2,346,276
1,365,605
2,431,625
2,366,837
4,777,901
97,643
97,643
336,346
336,346
2,269,194
4,441,555
44,012,408
44,012,408
(45,861,742)
(43,689,381)
4,118,528
4,118,528
2,269,194
4,441,555
(2,172,361)
(845,556)
(2,172,361)
(845,556)
Renegade Exploration Limited
56
2019 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 2019 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 2019.
On behalf of the Board
Robert Kirtlan
Chairman
30 September 2019
Renegade Exploration Limited
57
2019 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
30 September 2019
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 2019, 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)
Samir Tirodkar
Director
Liability limited by a scheme approved
under Professional Standards Legislation
Stantons International Audit and Consulting Pty Ltd
trading as
Chartered Accountants and Consultants
INDEPENDENT AUDITOR’S REPORT
TO THE MEMBERS OF
RENEGADE EXPLORATION LIMITED
Report on the Audit of the Financial Report
Opinion
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
We have audited the financial report of Renegade Exploration Limited, the Company and its subsidiaries (“the Group”),
which comprises the consolidated statement of financial position as at 30 June 2019, the consolidated statement of
profit or loss and other comprehensive income, the consolidated statement of changes in equity and the consolidated
statement of cash flows for the year then ended, and notes to the financial 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 2019 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.
Emphasis of Matter on Carrying Value of Deferred Exploration and Evaluation Expenditure related to Yukon
Base Metal Project
As referred to in note 14 to the financial report, the Group is in the process of finalising the renewal of the Land use
permit for the Yukon Base Metal Project in Yukon, Canada. The carrying value of the Deferred Exploration and
Evaluation Expenditure of the Group amounting to $2,998,345 as at 30 June 2019 includes $1,632,740 (CAD$1.5
million) for Yukon Base Metal Project.
The recoverability of the Group’s carrying value of capitalised exploration costs for the Yukon project is dependent on
the successful renewal of the land use permit, the successful commercial exploitation of the Yukon exploration assets
and/or sale of the Yukon exploration assets to generate amounts equivalent or greater than their book values. In the
event that the Group is not able to renew the land use permit or is not successful in commercial exploitation and/or sale
of the Yukon exploration assets, the realisable value of these assets may be significantly less than their current carrying
values as disclosed in the consolidated statement of financial position at 30 June 2019.
Key Audit Matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the
financial report of the current period. These matters were addressed in the context of our audit of the financial report
as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.
Liability limited by a scheme approved
under Professional Standards Legislation
In addition to the matters described in the Emphasis of Matter on Carrying Value of Deferred Exploration and Evaluation
Expenditure Related to Yukon Base Metal Project section above, we have determined the matter described below to
be a key audit matter to be communicated in our report.
Key Audit Matters
How the matter was addressed in the audit
Carrying Value of Exploration and Evaluation
Assets
As at 30 June 2019, Exploration and Evaluation
Assets totalled $2,998,345 (refer to Note 14 of the
financial report).
The carrying value of exploration and evaluation
assets is a key audit matter due to:
The expenditure capitalised is material in amount
and are the largest asset and constitutes 70% of
the total assets
to assess management’s
The necessity
application of the requirements of the 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 in relation to the capitalised
exploration and evaluation expenditure.
Inter alia, our audit procedures included the following:
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 capitalised exploration and
evaluation costs, ensuring the veracity of the data
assessing management’s
presented
consideration of potential impairment indicators,
commodity prices and the stage of the Group’s
projects also against AASB 6;
and
iii. Evaluation of Group documents for consistency
with the intentions for continuing exploration and
evaluation activities in areas of interest and
corroborated in discussions 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 2019 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 17 to 20 of the directors’ report for the year ended 30
June 2019.
In our opinion, the Remuneration Report of Renegade Exploration Limited for the year ended 30 June 2019 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)
Samir Tirodkar
Director
West Perth, Western Australia
30 September 2019
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 22 September 2019.
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
9
16
155
394
603
There are 276 shareholders holding less than a marketable parcel of ordinary shares.
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
63
2019 Annual Report
Renegade Exploration Limited
TOP 20 SHAREHOLDERS
Position
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
19
19
20
Holder Name
SIERRA WHISKEY PTY LIMITED
NERO RESOURCE FUND PTY LTD
MR ANTON WASYL MAKARYN &
MRS MELANIE FRANCES MAKARYN
ZEBINA MINERALS PTY LTD
THIRD REEF PTY LTD
MR PAUL NOBLE BENNETT
BARTORILLA ENTERPRISES PTY LTD
MR PAUL NOBLE BENNETT
MR BENJAMIN MATHEW VALLERINE
MR JEREMY TOBIAS
RESOURCE INVESTMENT CAPITAL HOLDINGS PTY LTD
JETOSEA PTY LTD
JAWAF ENTERPRISES PTY LTD
MR PAUL NOBLE BENNETT
LAWRENCE CROWE CONSULTING PTY LTD
TOLTEC HOLDINGS PTY LTD
WESTERN DISCOVERY PTY LTD
CAP HOLDINGS PTY LTD
SKINK RESOURCES PTY LTD
BEACON EXPLORATION PTY LTD
P SARIAN PTY LIMITED
POLARITY B PTY LTD
Holding
43,600,000
35,090,909
33,750,000
29,568,498
28,103,940
16,194,687
16,000,000
14,468,527
13,333,334
10,873,287
9,715,766
8,101,018
8,000,000
7,760,456
7,000,000
6,872,845
6,500,000
6,400,000
6,000,000
6,000,000
6,000,000
5,200,000
% IC
6.12%
4.92%
4.74%
4.15%
3.94%
2.27%
2.25%
2.03%
1.87%
1.53%
1.36%
1.14%
1.12%
1.09%
0.98%
0.96%
0.91%
0.90%
0.84%
0.84%
0.84%
0.73%
Total
324,533,267
45.54%
Unquoted Equity Securities
Class
Number of
securities
Number
of holders
Holders with
more than 20%
Options exercisable at $0.00754 on or before 19 Jan 2020 16,568,498
Options exercisable at $0.025 on or before 31 Mar 2021
15,000,000
Options exercisable at $0.035 on or before 31 Mar 2021
15,000,000
1
2
2
Zebina Minerals Pty Ltd
Sierra Whiskey Pty Ltd
South Shore Group Pty Ltd
Sierra Whiskey Pty Ltd
South Shore Group Pty Ltd
Renegade Exploration Limited
64
2019 Annual Report