Renegade Exploration Annual Report for the year ended 30 June 2023 0
Renegade Exploration Limited
ABN 92 114 187 978
ASX: RNX
Annual Report
For the year ended 30 June 2023
Follow the
copper.
Renegade Exploration Annual Report for the year ended 30 June 2023 1
Contents
02
Corporate
Directory
03
Chairman’s Letter
04
Operations
Review of
19
Corporate
20
Material Business
Risks
21
Tenement Position
22
Directors’ Report 27
Report
Remuneration
32
Statements
Cautionary
33
Statement
Corporate
Governance
34
Financial Report
36
Financial Position
Consolidated
Statement of
37
Flows
Consolidated
Statement of Cash
38
Changes in Equity
Consolidated
Statement of
35
Consolidated
Statement of Profit
or Loss and Other
Comprehensive
Income
39
Notes to the
Consolidated
Financial
Statements
68
Declaration
Directors’
69
Declaration
Auditor’s
Independence
70
Auditor’s Report
Independent
75
Information
Shareholder
Renegade Exploration Annual Report for the year ended 30 June 2023 2
Renegade Exploration is a resources
company developing a portfolio of
advanced copper projects in north-
west Queensland for the world’s next
electrical revolution.
Corporate Directory
Directors
Mr. Robert Kirtlan (Chairman)
Mr. Mark Wallace (Non-Executive Director)
Mr. Mark Connelly (Non-Executive Director)
Company Secretary
Mr. Graeme Smith
Registered Office and Principal Place of Business
Unit 13, 6 – 10 Duoro Street
West Perth WA 6005
Australia
Telephone: 1300 525 118
Operational Offices
Level 7, 333 Adelaide Street
Brisbane Queensland 4000
73 Seymour Street
Cloncurry Queensland 4824
Share Register
Automic Group
Level 5, 191 St. Georges Terrace,
Perth WA 6000
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
Level 2, 40 Kings Park Road
West Perth WA 6005
Solicitors
Corrs Chambers Westgarth
Level 6, Brookfield Place Tower 2
123 St Georges Terrace
Perth WA 6000
Renegade Exploration Annual Report for the year ended 30 June 2023 3
Chairman’s Letter
Overall, the 2023 financial year was another busy and productive period which could be described as the tale of
two districts. The second half of calendar 2022 saw activities focused around the prolific Mount Isa mining region
where drilling at the company’s North Isa Project returned positive results at the Lady Agnes Mine while the first
half of 2023 served to realise the phenomenal potential of our project near Cloncurry.
In January 2023, Renegade reached an agreement with Carpentaria Joint Venture (CJV) partner Mount Isa Mines
Limited (MIM) to become sole operator and funder of EPM 8588, now named the Cloncurry Project. The project is
host to a number of advanced copper prospects including the exciting Mongoose and Mt Glorious targets.
The project is located around the Cloncurry township and has substantial infrastructure at its doorstep including
rail, power, water, support services and is in an area which has an ongoing commitment to the mining industry.
Renegade moved its operational base from Mt Isa to Cloncurry in April 2023 to reflect the concentration of its work
in Cloncurry.
In March, the company completed a 2,000m reverse circulation (RC) drilling campaign over 23 holes at the
Mongoose Prospect after earlier field work confirmed the presence of significant copper-gold mineralisation within
multiple gossanous zones. Mongoose is a primary target given significant historical copper-gold drill intercepts and
its location immediately along strike from the neighbouring Paddock Lode Mine and Taipan Deposit.
First stage drilling encountered high-grade copper sulphide zones across multiple including RMG021 which
returned assays up to 25% copper in the copper sulphide zone. Extensive close-to-surface supergene style copper
mineralisation was also intersected.
On the back of these very encouraging results, second stage drilling of 1,600m began in May and provided further
confirmation of both oxide and deeper sulphide mineralisation. Renegade has commenced work on developing a
resource for Mongoose and is looking to do further drilling ahead of investigating near-term monetisation pathways.
Renegade ended the financial year on a high note when a substantial soil sampling and field mapping program,
completed 7km west of Mongoose at the historical Mt Glorious open pits, returned rock chip samples up to 17.8%
copper. Maiden drilling was poised to get underway at Mt Glorious in early October at the time of writing.
Given the focus at the Cloncurry Project work was limited at the North Isa Project however, future work at Lady
Agnes and Tulloch remains a focus for future activity in the current calendar year.
Funding was provided by ongoing proceeds from the Yandal East Project sale which provided cash, shares and a
royalty. Renegade continues to manage its portfolio and will look to opportunistic rationalisation of the portfolio for
future funding. This financial year is already shaping up as one of Renegade’s most exciting periods and we look
forward to returning greater value on your investment in the company.
Yours faithfully
Robert Kirtlan
Chairman, Renegade Exploration Limited
Renegade Exploration Annual Report for the year ended 30 June 2023 4
Review of
Operations
Renegade Exploration Annual Report for the year ended 30 June 2023 5
Project Overview
Renegade Exploration is an Australian based minerals exploration and development
company focused on the development of projects in northern Queensland. The
company’s primary objective is to deliver long-term shareholder value through the
discovery, acquisition and development of economic mineral deposits.
The company’s portfolio has exposure to copper, gold, zinc, cobalt, vanadium and rare earths and stretches from
the prolific mining district of Mount Isa in the west to Barcaldine in central west Queensland. Our interest in the
Carpentaria Joint Venture covers a package of advanced copper and gold projects in Queensland’s Cloncurry
mining district led by the Cloncurry Project, which is advanced in terms of prospective targets and previous
exploration activity.
The company has recently expanded its north-west Queensland interests by earning a 75% joint venture interest in
the North Isa Project, located just north of MIM’s George Fisher mining operations and has several advanced
prospects to continue exploration activities on.
It has also acquired permits near Barcaldine in central west Queensland which are considered to be prospective for
vanadium and rare earths.
Renegade Exploration Annual Report for the year ended 30 June 2023 6
Cloncurry Project (EPM 8588)
Copper | Gold | Cobalt
Renegade has a 27% interest in the Cloncurry Project, EPM 8588, which is located near
the established mining town of Cloncurry in north-west Queensland and hosts a number
of advanced copper prospects including the Mongoose and Mt Glorious prospects. The
project is along strike from the neighbouring Great Australia Mine and Taipan
Deposit.
In January 2023, Renegade announced it had reached an agreement with Carpentaria Joint Venture (CJV) partner
Mount Isa Mines Limited (MIM) to become sole operator and funder of EPM 8588.
Mongoose Prospect
Located just south of Cloncurry, Mongoose is a primary target with significant historical copper-gold intercepts and
is along strike from the neighbouring Great Australia Mine and Taipan Deposit. Mongoose has been the subject of
two drilling programs since March 2023 to determine potential for near term mining with the initial target being near
surface copper oxides.
Renegade has completed two reverse circulation drilling programs, totalling ~3,600m, at Mongoose in March and
May 2023. The program has been successful in expanding the supergene oxide zone and discovering a high-grade
sulphide zone. Renegade is currently working on modelling the oxide and sulphide resources.
Renegade Exploration Annual Report for the year ended 30 June 2023 7
Figure 1. Drilling at the Mongoose Prospect, Cloncurry Project, in March 2023.
Renegade drilled ~2,000m in its first Stage 1 reverse circulation (RC) drilling program followed by ~1,600m of RC
to continue expanding the oxide copper zone and further test the sulphide mineralisation discovered in the first
program and reported on 22 March 2023.
Stage 1 drilling in April intersected the shallow oxide zone and discovered high grade sulphide zone including:
RMG021:
27 m @ 2.2 % Cu, 0.35 g/t Au from 84 m; including,
10 m @ 5.4 % Cu, 0.87 g/t Au from 84 m including
1 m @ 25.60 % Cu, 2.13 g/t Au from 90 m, including
1 m @ 14.05 % Cu, 1.98 g/t Au from 91 m
RMG019:
74 m @ 0.70 % Cu, 0.19 g/t Au from 68 m; including,
5 m @ 1.9 % Cu, 1.01 g/t Au, from 68 m; and
27 m @ 1.1 % Cu, 0.26 g/t Au, from 115 m; including,
7 m @ 2.3 % Cu, 0.54 g/t Au, from 130 m
The Stage 2 drilling in May continued to intercept shallow oxide copper zones and the high-grade copper sulphide
mineralisation with the following highlights :
RMG032:
42m @ 0.79 % Cu, 0.17 g/t Au from 96m; including
25m @ 1.1 % Cu, 0.26 g/t Au from 113m; including
8m @ 2.3 % Cu, 0.6 g/t Au from 113m; including
3m @ 4.5 % Cu, 1.4 g/t Au from 119m; and
10m @ 0.47 % Cu, 0.09 g/t Au from 6m.
RMG018:
20m @ 0.74 % Cu, 0.22 g/t Au from 169m; including
8m @ 1.0 % Cu, 0.29 g/t Au from 181m.
RMG029:
11m @ 0.84 % Cu, 0.14 g/t Au from 79m.
RMG030:
10m @ 0.34 % Cu, 0.06 g/t Au from 130m.
RMG026:
15m @ 0.90 % Cu, 0.15 g/t Au from 10m.
Renegade Exploration Annual Report for the year ended 30 June 2023 8
Figure 2. Mongoose plan view showing recent drill hole intercepts.
Mongoose Prospect Background
The Mongoose Prospect is hosted by dolerite-gabbro-porphyritic basalts of the Toole Creek Formation. The
mineralised zone is dominated by magnetite-actinolite-albite-chlorite altered, sheared and brecciated dolerites. The
mineralisation is both primary and supergene in nature. The supergene zone is defined by the presence of
malachite, chrysocolla, chalcocite, and cuprite. The fresh, primary (hypogene) copper mineralisation is defined by
chalcopyrite with accessory pyrite.
The work completed by the CJV during 2013-14 delineated an extensive coincident magnetic-chargeable anomaly
and based on this the CJV completed 3,988 m of reverse circulation (RC) and diamond drilling over 21 drill holes
during 2013/2014.
Renegade Exploration Annual Report for the year ended 30 June 2023 9
Figure 3. Mongoose project, showing nearby open pit mines and resources with magnetics RTP.
The entire EPM 8588 permit area has numerous historical workings and has been the subject of substantial
historical work programs including soil and rock chip sampling, geophysics, mapping and over 15,000m of drilling.
This data has been compiled into Renegades GIS and is the subject of ongoing review. Numerous prospects exist
which require follow up.
In general, the previous programs were targeting large deposits. Renegade is working on models which may host
smaller high-grade deposits which lend themselves to early mining and cash generation opportunities. Renegade
has inherited work from previous programs totalling ~$5m.
Following the commencement of the sole risking or Earn Back in EPM 8588 Renegade is the operator of the permit
and controls expenditure and exploration and development of the permit. Renegade will earn back into the permit
on terms similar to the existing CJV terms previously announced.
Mt Glorious Prospect
Mt Glorious is located just 7km west of Mongoose and the Cloncurry townsite and lies 500m off the Barkly
Highway.
Mt Glorious was mined up until approximately 2013-15. Records are limited but the Company is pursuing what data
may be available. Mt Glorious consists of three pits, South Pit, Main Pit and North Pit. From the sampling done to
date, field mapping and observation of the geological settings it appears the ore grade was high.
Renegade Exploration Annual Report for the year ended 30 June 2023 10
Figure 4. Mt Glorious Prospect showing recent soil sampling, high grade rock chips and historic pit outlines.
Numerous historical mining pits lie on a north-south/north-west trending structure and exhibit brecciation and
alteration. Of additional interest is the parallel iron formation which appears to be high grade haematite. Samples
have been taken to determine grade and characteristics of the iron ore.
Rock chip sampling in pit and surrounds has yielded outstanding results including:;
MGLRS001
MGLRS004
MGLRS009
MGLRS016
MGLRS017
17.8% Cu, 0.28g/t Au
2.96% Cu
4.33% Cu, 0.14g/t Au
2.89% Cu, 14.35g/t Au
5.93% Cu
Renegade Exploration Annual Report for the year ended 30 June 2023 11
A soil sampling program comprising over 500 samples was completed in June with pXRF results released on 27
July 2023. The program highlighted broad zones of mineralisation in the geological corridor of interest;
• ~1,000m long, ~250m wide +200 ppm Copper anomaly within which is a;
• ~400m long, ~140m wide high-grade +800 ppm Copper anomaly
•
Including spot high copper values of;
RGLSS_297: 5,434 ppm Cu
RGLSS_298: 2,798 ppm Cu
RGLSS_360: 2,394 ppm Cu
• A large ~600m long, ~250m wide high-grade Cobalt anomaly (+800 ppm)
•
Including spot high cobalt value of;
RGLSS_81: 1380 ppm Cu
Mt Glorious Geology
Copper deposits in the western portion of EPM 8588 are separated into two dominant types. The first type of
deposits are limestone hosted, where the copper is delivered into the limestone via faults and fractures. Copper
precipitation is thought to occur due to a chemical reaction between the copper rich fluids and the carbonate rich
rock. These deposits include Magpie, Salmon, Dolomite, and the Dingo historical mines. The second deposit type
is where the copper is fault/breccia hosted with the quartzite country rock.
Mt Glorious is the second type and is hosted by quartzites and dolerites which have been faulted and brecciated
thereby providing the open spaces and fluid pathways required for mineralisation. The mineralisation at Mt Glorious
is characterised by a large alteration system covering numerous faults which display differing elemental
enrichments. From west to east, the faults display hematite enrichment, followed by a line of faults with copper
enrichment, then by a zone of pyrite enrichment. The structures of interest are mainly steep dipping and trend to
the NW and dipping steeply to the NE (70-80°). These faults develop into a quartz-hematite breccia and gossan in
the central area. A secondary fault system is highlighted by a hematite rich ridge which trends WNW. Mineralisation
within the open pits at Mt Glorious consists of supergene copper enrichment. The dominant copper minerals are
chalcocite, cuprite, malachite, azurite and chrysocolla.
Renegade Exploration Annual Report for the year ended 30 June 2023 12
Carpentaria Joint Venture
Copper | Gold | Cobalt
Renegade has a 23% interest in the Carpentaria Joint Venture (CJV) which covers a
package of advanced copper and gold projects in Queensland’s Cloncurry mining
district. Our operating partner is Mount Isa Mines Limited (a subsidiary of Glencore plc).
The CJV holds the following permits EPM 8586 (Mt Marathon), EPM 12180 (St Andrews Extended), EPM 12561
(Fountain Range), EPM 12597 (Corella River), and EPM 8588 (Mt Avarice) (excised under sole risk terms and now
funded and operated by Renegade).
Renegade Exploration Annual Report for the year ended 30 June 2023 13
Edgard Copper-Cobalt Prospect (EPM 12180)
Drilling of two RC holes was completed in the June quarter. Renegade will compile the results when received and
report to JORC12.
Edgarda is located within 9km of the three recent discoveries by Carnaby Resources (Figure 6) which included:
• Nil Desperandum, 7 km SW, 41m @ 4.1% Cu
• Lady Fanny, 5km EW, 68m @ 2.4% Cu
• Mount Hope 8 km NW, 60 m @ 3.1% Cu
The company rates the Edgarda Prospect highly. It hosts a 2,300m long magnetic anomaly and a 1,300m long
chargeable/resistivity anomaly which are only partially drilled (Figure 6).
Drilling consisted of just two holes underneath the historical Edgarda mine (Figure 7), recorded as being 400m
long, 15m wide, and 8m deep. This area is completely undrilled to date. The Company has been on site and notes
numerous workings including shafts in the area of interest.
Edgarda Prospect Background
Edgarda is hosted by highly sheared and altered calc-silicate rocks of the Corella Formation (Eastern Fold Belt).
The work completed by the CJV during the early 2000’s delineated an extensive coincident magnetic-chargeable-
resistive-soil (Cu/Co) anomaly. Based on the coincident anomalies. The CJV completed 2,230m of reverse
circulation (RC) and diamond drilling over nine drill holes during 2007/2008. This drilling is exclusively orientated
towards the east and has intercepted large zones of Cu-Co mineralisation:
• 52 m @ 0.22 % Cu & 382 ppm Co (from 32 m) including:
23 m @ 0.3 % Cu & 626 ppm Co (from 33 m),
• 40 m @ 0.21 % Cu & 309 ppm Co (from 92 m), &
• 20 m @ 0.20 % Cu & 286 ppm Co (from 94 m)
Of significance, are the high historical cobalt results. The best 1m samples are: -
• 0.25 % Co, 0.62 % Cu
• 0.19 % Co, 0.06 % Cu
• 0.16 % Co, 0.29 % Cu
• 0.15 % Co, 0.26 % Cu
Renegade Exploration Annual Report for the year ended 30 June 2023 14
Figure 6. Magnetics RTP showing recent nearby significant Cu discoveries.
Renegade Exploration Annual Report for the year ended 30 June 2023 15
North Isa Project
Copper | Zinc | Gold
The North Isa Project is located directly north of Glencore’s George Fisher Mine and
approximately 40km north of Mt Isa township. Renegade met its expenditure requirement
with Glencore and now owns 75% of the project.
Renegade drilled approximately 1,200m of reverse circulation drilling at Lady Agnes in the prior financial year with
results reported on 8 August 2022 . The campaign was designed to test under the historical Lady Agnes Copper
Mine and follow up on legacy work, and confirmed broad zones of significant copper mineralisation in the sulphide
zone with gold credits. The broad zones of mineralisation are interpreted as being open to the south along the
Eastern Creek Volcanic (ECV) contact, at depth and to the east of the ECV contact where an IP anomaly has been
discovered.
Renegade Exploration Annual Report for the year ended 30 June 2023 16
The best assays returned from drilling were:
LARC22 – 001:
17m @ 0.68% Cu, 0.24g/t Au from 85m including;
8m @ 1.07% Cu, 0.36g/t Au from 87m
6m @ 0.39% Cu, 0.29g/t Au from 133m including;
2m @ 1.04% Cu, 0.90g/t Au from 137m
LARC22 – 002:
30m @ 0.51% Cu, 0.06g/t Au from 118m including;
6m @ 1.22% Cu,0.14g/t Au from 123m
34m @ 0.66% Cu, 0.12g/t Au from 216m including;
6m @ 1.43% Cu, 0.24g/t Au from 237m
LARC22 – 003:
44m @ 0.54% Cu, 0.12g/t Au from 164m including;
4m @ 1.28% Cu, 0.16% Au from 200m
Planned future programs include soil sampling and mapping at the Tulloch Prospect with potential follow up drilling
at Lady Agnes.
Renegade Exploration Annual Report for the year ended 30 June 2023 17
Aramac Project
Copper | Zinc | Gold
Renegade has made application for a number of permits in the Barcaldine region. The
permits cover previously discovered Toolebuc formation which is the host to Vanadium
deposits to the north in the Julia Creek and Richmond areas.
Substantial historical work has been undertaken on the permits which contains well know sedimentary oil shale
mineralisation with potential vanadium and rare earth element enrichment. During the quarter a further permit
application was applied for. Upon receipt of final permit grants Renegade intends to do a major review of previous
data with a view to formulating field exploration programs.
Renegade Exploration Annual Report for the year ended 30 June 2023 18
Yukon Base Metal Project
Zinc
On 5 October 2020, the Company announced it had entered into a Letter of Intent with
Scharfe Holdings Inc (Scharfe). The Sale and Purchase Agreement (SPA) was finalised on
30 November 2020 and executed with a Scharfe subsidiary, Actium Resources Inc
(together Scharfe).
The terms of the SPA included:
• Total consideration of A$1,650,000 in cash payments over three years, A$500,000 of exploration expenditure on
the Project by end of 2021 and a residual 1% NSR interest which Scharfe can acquire for A$1m upon
commercial production being achieved.
• The original payment terms were as follows:
I. Payment on documentation completion and signing (Trench 1) $250,000
Received
II. Payment on first anniversary of signing (Trench 2)
$300,000
Due 30/11/21
III. Payment on second anniversary signing (Trench 3)
$400,000
Due 30/11/22
IV. Payment on third anniversary of signing (Trench 4)
$700,000
Due 30/11/23
V. Scharfe can pay outstanding tranches at any time in advance of the 36-month anniversary date.
Scharfe has assumed operatorship of the Yukon Project on and from the Closing Date.
In July 2021, Renegade agreed to amend the terms of the Share Purchase Agreement with respect to the sale of
the Company’s Yukon Project with Scharfe Holdings Inc. (Scharfe) which included an immediate payment of
$500,000, received by the Company on 4 August 2021.
Scharfe is responsible for maintenance of all permits in accordance with the relevant requirements. If Scharfe does
not meet any of the cash consideration payments when due, the transaction may be terminated and Renegade will
be entitled to retain the Yukon Project.
Scharfe can pay the outstanding Tranches at any time in advance of the 36 month anniversary date.
The terms of the Share Purchase have been amended as follows:
a)
a)
b)
c)
Total consideration of A$1,650,000 replaced with A$1,450,000 ;
Tranche 2 and Tranche 3 was replaced with a payment of AUD500,000 on or before 30 July 2021. The
Company received this payment on 4 August 2021;
The deadline to spend CAD500,000 on the project has been amended from 31 December 2021 to 30
November 2023; and
If the Expenditure is not made by 30 November 2023, Scharfe will pay AUD300,000 to Renegade in lieu
of the Expenditure.
Renegade Exploration Annual Report for the year ended 30 June 2023 19
Corporate
The Company had 948.1m ordinary shares on issue and cash and cash equivalents of $76,669 and investments
valued at approximately $113,000 as at 30 June 2023. On 20 July 2023, Renegade advised it had secured a 12%
$700,000 Loan Facility secured against the funds owed for settlement on the Yukon Project sale.
On 16 January 2023 the company advised it had exercised its earn back right with respect to the Carpentaria Joint
Venture permit, EPM 8588, which allows it to operationally manage and earn back its interest in the permit.
The company manages its costs in accordance with the projects it holds and the requirements these projects have
for either management or exploration funds. The company is being managed by its directors, a full-time exploration
manager and engages external consultants, as required, with specific experience to its projects who provide advice
as to how these projects are best managed.
Renegade continues to assess new opportunities presented. The board remains focused on gold, new age
minerals and base metal projects.
Renegade Exploration Annual Report for the year ended 30 June 2023 20
Material Business Risks
The objective of the Company is to create long-term shareholder value through the discovery, development and
acquisition of technically and economically viable mineral deposits. To date, the Company has not commenced
production of any minerals, nor has it identified a Mineral Resource in accordance with the JORC Code The material
business risks faced by the Company that could have an effect on the Company’s future prospects, and how the
Company manages these risks include:
The Company’s and its joint venture exploration programs may not identify an economic deposit
Despite positive exploration results on a number of projects, current and potential investors should understand that
mineral exploration, development and mining are high-risk enterprises, only occasionally providing high rewards. The
success of the Company also depends, among other things on successful exploration and/or acquisition of reserves,
securing and maintaining title to tenements and consents, successful design, construction, commissioning and
operating of mining and processing facilities, successful development and production in accordance with forecasts
and successful management of the operations. Exploration and mining activities may also be hampered by force
majeure circumstances, land claims and unforeseen mining problems. There is no assurance that exploration and
development of the mineral interests owned by the Company, or any other projects that may be acquired in the
future, will result in the discovery of mineral deposits which are capable of being exploited economically. Even if an
apparently viable deposit is identified, there is no guarantee that it can be profitably exploited. If such commercial
viability is never attained, the Company may seek to transfer its property interests or otherwise realise value, or the
Company may even be required to abandon its business and fail as a “going concern”.
The Company’s exploration activities being delayed due to lack of available equipment and services
The exploration activities of the Company requires the involvement of a number of third parties, including drilling
contractors, assay laboratories, consultants, other contractors and suppliers. Demand for drilling equipment and
exploration related services in Western Australia is currently very high and has resulted in higher exploration costs,
delays in completing the Company’s exploration activities, and delays in the assessment and reporting of the results.
Should there continue to be high demand for exploration equipment and related services, there may be delays in
undertaking exploration activities, which may result in increased exploration costs and/or increased working capital
requirements for the Company and may have a material impact on the Company’s operations and performance.
The Company’s operations will require further capital
The exploration and any development of the Company’s exploration properties will require substantial additional
financing. Failure to obtain sufficient financing may result in delaying, or the indefinite postponement of exploration
and any development of the Company’s properties or even a loss of property interest. There can be no assurance
that additional capital or other types of financing will be available if needed or that, if available, the terms of such
financing will be favourable to the Company.
The Company may be adversely affected by fluctuations in commodity prices
The price of commodities fluctuate widely and are affected by numerous factors beyond the control of the Company.
Future production, if any, from the Company’s mineral properties will be dependent upon the price of commodities
being adequate to make these properties economic. The Company currently does not engage in any hedging or
derivative transactions to manage commodity price risk. As the Company’s operations change, this policy will be
reviewed periodically going forward.
Global financial conditions may adversely affect the Company’s growth and profitability
Many industries, including the mineral resource industry, are impacted by these market conditions. Some of the key
impacts include contraction in credit markets resulting in a widening of credit risk, devaluations and high volatility in
global equity, commodity, foreign exchange and precious metal markets, and a lack of market liquidity. Due to the
current nature of the Company’s activities, a slowdown in the financial markets or other economic conditions may
adversely affect the Company’s growth and ability to finance its activities.
Renegade Exploration Annual Report for the year ended 30 June 2023 21
Tenement Position
Mining Claims / Tenements held at 30 June 2023:
Australian
Projects
Permit
Number
Permit Type
Type of Interest
Interest at Start of
Quarter
Interest at End of
Quarter
Carpentaria
EPM8586
Exploration Licence
JVA (QLD)
EPM8588
Exploration Licence
EPM12180
Exploration Licence
EPM12561
Exploration Licence
EPM12597
Exploration Licence
Direct
Direct
Direct
Direct
Direct
23.03
23.03
23.03
23.03
23.03
23.03%
26.89%
23.03%
23.03%
23.03%
Australian
Projects
Permit
Number
Permit
Type of Interest
Interest at Start of
Quarter
Interest at End of
Quarter
Queensland
Permits
Canadian
Projects
Yukon Base
Metal Project
EPM27508
Exploration Licence
Direct
EPM28680
Exploration Licence (application)
Direct
EPM28681
Exploration Licence
Direct
EPM28682
Exploration Licence (application)
Direct
EPM28683
Exploration Licence
Direct
EPM28852
Exploration Licence (application)
Direct
75%
100%
100%
100%
100%
100%
75%
100%
100%
100%
100%
100%
Claim Name
Claim Numbers
Type of Interest
Interest at Start of
Quarter
Interest at End of
Quarter
A
AMB
AMBfr
Andrew
Atlas
B
B
Bridge
Clear
Dasha
Data
Link
1-8, 57-104
1-112, 115-116, 123-150
117-122, 151-162
1-Oct
1-Jun
53, 55, 57, 59, 61, 63, 65-74, 79-
100, 105-126
127-194
1-8, 11-16, 19-32
Jan-25
1-Jun
1-320
1-231
Myschka
1-17, 19-96
Ozzie
Riddell
Scott
Shack
Sophia
TA
Jan-32
Jan-80
Jan-36
1-May
1-Apr
1-332
Claim owner
Claim owner
Claim owner
Claim owner
Claim owner
Claim owner
Claim owner
Claim owner
Claim owner
Claim owner
Claim owner
Claim owner
Claim owner
Claim owner
Claim owner
Claim owner
Claim owner
Claim owner
Claim owner
90%
90%
90%
90%
90%
90%
100%
90%
100%
90%
100%
100%
90%
90%
100%
90%
100%
90%
100%
90%
90%
90%
90%
90%
90%
100%
90%
100%
90%
100%
100%
90%
90%
100%
90%
100%
90%
100%
Renegade Exploration Annual Report for the year ended 30 June 2023 22
Directors’
Report
Renegade Exploration Annual Report for the year ended 30 June 2023 23
The Directors present their report for Renegade Exploration Limited (“Renegade” or “the Company”) and
its subsidiaries (“the Group”) for the year ended 30 June 2023.
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 30 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.
In the last three years Mr Kirtlan was a Director of Currie Rose Resources Inc (resigned 15 September 2022) and
Vault Intelligence Limited which was acquired by way of takeover in October 2020 (appointed 30 November 2011,
resigned 19 October 2020).
Mr. Mark Connelly
Non-Executive Director
Mark Connelly has a proven track record in the mining industry with over thirty years’ experience and is well
credentialled to join the Renegade Board to add experience and depth to the existing team.
In recent years he was the CEO of Papillon Resources and Adamus Resources. Both companies were acquired in
by way of takeovers with Papillon valued at over USD570m. Papillon was developing the Fekola gold deposit in
Mali and Adamus Resources was a gold production company based in Ghana.
Prior to this Mark Connelly worked held senior management roles at Inmet Mining and Newmont Mining and also
as COO at Endeavour Mining following its acquisition of Adamus Resources.
Mr Connelly is a Director of Calidus Resources Limited, Omnia Metals Limited, BeMetals Corp Inc, Warriedar
Resources Limited, and Alto Metals Limited.
Within the last three years Mr Connelly has been a director of Barton Gold (January 2021 to April 2022), Emmerson
plc (July 2018 to June 2021), Tao Commodities Limited (May 2018 to May 2021), Primero Group (April 2018 to
February 2021), Oklo Resources Limited (July 2019 - May 20-22), Chesser Resources Limited (Jul 2020 - Sept
2023).
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 is Managing Director of Gold 50 Limited (ASX:G50).
COMPANY SECRETARY
Mr. Graeme Smith
Mr Smith is the principal of Wembley Corporate Services Pty Ltd which provides corporate secretarial, CFO and
governance services. Mr Smith has over 30 years of experience in company secretarial work.
Renegade Exploration Annual Report for the year ended 30 June 2023 24
INTERESTS IN THE SECURITIES OF THE COMPANY
As at the date of this report, the interests of the Directors in the securities of the Company were:
Director
R. Kirtlan
M. Wallace
M. Connelly
Ordinary
Shares
Options over
Ordinary Shares
Performance
Rights
45,014,285
-
48,100,000
25,000,000
-
-
500,000
-
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
$1,537,240 (2022: profit of $976,637).
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
Other than as disclosed elsewhere within this report, there has been no significant change of affairs during the year
ended 30 June 2023.
NATURE OF OPERATIONS AND PRINCIPAL ACTIVITIES
During the financial year, the Group’s principal activity was mineral exploration. There have been no changes in the
principal activities from prior years. During the year, the Group entered into a Joint Venture at the North Isa Project
in Queensland, Australia and sold its Yandal East Project.
Brief summaries of these transactions are listed below.
YUKON BASE METAL PROJECT, CANADA
Renegade finalised a Sale and Purchase Agreement (SPA) on 30 November 2020 with Scharfe subsidiary, Actium
Resources Inc (together Scharfe). Scharfe assumed operatorship of the Yukon Project on and from the Closing
Date
In July 2021, Renegade agreed to amend the terms of the Share Purchase Agreement with respect to the sale of
the Yukon Project with Scharfe which included an immediate payment of $500,000 paid to the Company on 4
August 2021.
Scharfe is responsible for maintenance of all permits in accordance with the relevant requirements. If Scharfe does
not meet any of the cash consideration payments when due, the transaction may be terminated, and Renegade will
be entitled to retain the Yukon Project.
NORTH ISA PROJECT JOINT VENTURE
The North Isa Project (NIP) transaction was signed in December 2021 and work commenced immediately on a
substantial historical data base. The data included historical drilling, soil sampling and geophysical programs.
Renegade Exploration Annual Report for the year ended 30 June 2023 25
Some of this information has been reported to the Australian Stock Exchange (ASX) thru releases noted below in
accordance with JORC12 requirements.
The transaction is a Joint Venture with Renegade spending $500,000 over four years to acquire a 75% interest
with the partner to be carried thereafter to a Pre-Feasibility Study before contributing or diluting to a royalty.
Renegade earned its full 75% interest and this was announced in January 20231.
CARPENTARIA JOINT VENTURE (CJV) INTEREST ACQUISITION
In December 2020, Renegade agreed to acquire the Joint Venture Interest that Sovereign Metals Limited holds in the
Carpentaria Joint Venture Agreement (Carpentaria JVA, CJV) with Mount Isa Mines Limited (MIM), a subsidiary of
Glencore plc.
The CJV was initially formed in 2001, with Sovereign acquiring its interest in the joint venture in 2007. Since 2001, total
expenditure on the Carpentaria JVA has been approximately $15.43m, with MIM contributing approximately $12m and
Sovereign contributing $2.9m over that time. Sovereign elected to cease contributing to joint venture expenditure on the
tenements, resulting in its joint venture interest reducing to the current interest of approximately 23%.
Renegade has been a contributing partner to the CJV and maintains its 23%.
It has increased its interest in EPM 8588 to 26.9% by way of the Earn Back clause in the CJV. Renegade is the operator
and sole funder of EPM8588, now called the Cloncurry Project2.
EMPLOYEES
The Group has one full time employee at 30 June 2023 (2022: no employees).
REVIEW OF OPERATIONS
Refer to the Operations Report preceding this Directors’ Report.
SIGNIFICANT EVENTS AFTER THE REPORTING DATE
Renegade sold the balance of its share portfolio in July 2023 for net proceeds of $91,483. Other than as disclosed
elsewhere within this report, there were no other subsequent events after the reporting date.
Renegade entered into a Loan Facility Agreement on 20 July 2023. The facility is for up to $700,000 at an interest rate of
12%pa for six months and is secured against the outstanding Yukon Option Agreement amount outstanding .
LIKELY DEVELOPMENTS AND EXPECTED RESULTS OF OPERATIONS
The Group will continue to carry out its business plan, by:
• continuing work programs at the Cloncurry Project (EPM 8588);
• contribution to the Carpentaria Joint Venture and North Isa JV and enhancing potential value;
• pursuing the acquisition of additional projects with synergy to those currently in the Group’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.
1 Refer ASX Release dated 10 January 2023; Renegade achieves 75% interest in North Isa Project
2 Refer ASX Release dated 16 January 2023; Renegade assumes control of Mongoose Project
Renegade Exploration Annual Report for the year ended 30 June 2023 26
SHARE OPTIONS
As at the date of this report, there were 35,000,000 unlisted options over ordinary shares. The details of the options at
the reporting date are as follows:
Number
Exercise Price
Expiry Date
35,000,000
$0.005
30 November 2023
No option holder has any right under the options to participate in any other share issue of the Company or any
other entity.
35,000,000 options were exercised during the financial year.
PERFORMANCE RIGHT
As at the date of this report, there were 50,000,000 unlisted performance rights over ordinary shares. The details
of the performance rights at the reporting date are as follows:
Number
1,000,000
2,000,000
2,000,000
10,000,000
5,000,000
5,000,000
25,000,000
Vesting Date
Expiry Date
14 August 2022
02 December 2024
14 February 2023
02 December 2024
14 February 2024
02 December 2024
14 February 2025
14 February 2025
7 May 2023
7 November 2024
7 November 2023
7 November 2024
(Refer to note 13)
10 January 2028
No holder has any right under the options to participate in any other share issue of the Company or any other entity.
No performance rights were exercised during the financial year.
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.
Renegade Exploration Annual Report for the year ended 30 June 2023 27
DIRECTORS’ MEETINGS
During the financial year, in addition to regular informal Board discussions, the number of Director’s meetings held
during the year, and the number of meetings attended by each Director were as follows:
Name
Mr Robert Kirtlan
Mr Mark Wallace
Mr Mark Connelly
Number of meetings eligible
to attend/ circular
resolutions
Number of meetings attended/
circular resolutions
8
8
8
8
8
8
PROCEEDINGS ON BEHALF OF COMPANY
No person has applied for leave of court to bring proceedings on behalf of the Company or intervene in any
proceedings to which the Company is a party for the purpose of taking responsibility on behalf of the Company for
all or any part of those proceedings. The Company was not a party to any such proceedings during the year.
CORPORATE GOVERNANCE
In recognising the need for the highest standards of corporate behaviour and accountability, the Directors of the
Company support and have adhered to the principles of sound corporate governance. The Board recognises the
recommendations of the Australian Securities Exchange Corporate Governance Council, and considers that the
Company is in compliance with those guidelines to the extent possible, which are of importance to the commercial
operation of a junior listed resources Company. The Company’s Corporate Governance Statement and disclosures
are available on the Company’s website.
AUDITOR’S INDEPENDENCE AND NON-AUDIT SERVICES
Section 307C of the Corporations Act 2001 requires the Group’s auditors to provide the Directors of Renegade
Exploration Limited with an Independence Declaration in relation to the audit of the full-year financial report. A copy
of that declaration is included at page 67 of this report. There were no non-audit services provided by the
Company’s auditor during the year ended 30 June 2023.
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
Mr. Mark Wallace
Mr. Mark Connelly
Chairman
Non-Executive Director
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
Renegade Exploration Annual Report for the year ended 30 June 2023 28
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
2023
2022
2021
2020
2019
Profit/(Loss) per share (cents)
(0.17)
0.09
(0.10)
(0.12)
(0.09)
Share price at reporting date (cents)
1.2
0.6
0.6
0.5
0.2
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:
2023
Base Directors Consulting
Payments
Employment
Short term
Share Based
Post
Salary
Fees
Fees
-
Superannuation
Total
Director
Mr. Robert Kirtlan
Mr. Mark Wallace
Mr Mark Connelly
Performance
Rights
$
-
-
$
-
-
$
296,000
84,000
48,000
-
48,000
380,000
18,438
18,438
$
-
-
-
$
-
-
-
-
$
296,000
84,000
66,438
446,438
Renegade Exploration Annual Report for the year ended 30 June 2023 29
2022
Base Directors Consulting
Payments
Employment
Short term
Share Based
Post
Salary
Fees
Fees
-
Superannuation
Total
Director
Mr. Robert Kirtlan
Mr. Peter Voulgaris
Mr. Mark Wallace
Mr Mark Connelly
$
-
-
-
-
$
$
-
230,500
16,000
-
-
77,000
16,000
-
32,000
307,500
Performance
Rights
$
-
-
-
21,770
21,770
$
-
-
-
-
-
$
230,500
16,000
77,000
37,770
361,270
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 the current reporting period of KMP
are as follows:
Type
Grant
Date
Grant
Number
Expiry
Date/Last
Exercise
Date
Fair Value
at Grant
Date
Exercise
Price
Total
Value
Granted
$
Vested
%
Vested
30 June 2023
M. Wallace
Options
30/11/20
25,000,000
30/11/23
$0.0047
$0.005
$118,425
25,000,000
100%
M. Connelly
Performance
29/11/22
5,000,000
02/12/24
$0.006
Nil
$30,000
1,000,000
20%
Rights
M. Connelly
Performance
29/11/22
10,000,000
02/12/25
$0.006
Nil
$60,000
2,000,000
20%
Rights
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. 35,000,000 options were exercised during the year ended 30 June
2023 (2022: Nil). Refer to note 27
Part of Mr Connelly's remuneration is represented by the 15 million Performance Rights granted under the
employee share option plan. Refer to Note 27. The Performance Rights were approved by shareholders at the
November 2022 AGM
Renegade Exploration Annual Report for the year ended 30 June 2023 30
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.
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
30 June 2023
Mr. Robert Kirtlan
13,014,285
Mr. Mark Connelly
-
Mr. Mark Wallace
48,100,000
30 June 2022
Mr. Robert Kirtlan
10,014,285
Mr. Mark Connelly
-
Mr. Mark Wallace
48,100,000
Mr. Peter Voulgaris1
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
32,000,000
45,014,285
-
-
-
48,100,000
3,000,000
13,014,285
-
-
-
-
48,100,000
-
Unlisted security holdings of Key Management Personnel
The numbers of unlisted securities 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:
Balance at
Granted during
Exercised
Other
Balance at
% vested
Type
the start of
the year as
during the year
changes
the end of
30 June 2023
the year
compensation
during the
the year
Mr. Robert Kirtlan
Mr. Mark Wallace
Options 30,000,000
Options 25,000,000
-
-
Mr. Mark Connelly
Rights
-
15,000,000
Performance
year
(30,000,000)
-
-
-
-
-
- 25,000,000
100%
- 15,000,000
20%
Balance at
Granted during
Exercised
Expired
Balance at
% vested
the start of
the year as
during the year
during the
the end of
the year
compensation
year
the year
Options 30,000,000
Options
5,000,000
Options 25,000,000
Options
-
-
-
-
-
-
-
-
-
- 30,000,000
100%
(5,000,000)
-
-
- 25,000,000
100%
-
-
-
30 June 2022
Mr. Robert Kirtlan
Mr. Peter Voulgaris1
Mr. Mark Wallace
Mr. Mark Connelly
¹ Resigned 17 February 2022.
Executive Directors and Key Management Personnel
Robert Kirtlan is the only executive director.
Renegade Exploration Annual Report for the year ended 30 June 2023 31
Mr Kirtlan has a consulting agreement 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 $10,000 per month and a daily fee of up
to $1,500 for days in excess of 10 days per month. Mr Kirtlan’s advisory business provides services of a corporate
nature including legal, accounting and general management work plus substantial in field work.
Non-Executive Directors
Mr Wallace has a consulting agreement with the Company. Mr Wallace’s agreement provides his services for a
minimum of 2 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 2 days per month or as otherwise agreed. Mr Wallace’s services are corporate in nature.
Mr Connelly agreement provides his services for a minimum of 2 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 2 days per month or as otherwise agreed.
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 (Audited)
Signed on behalf of the board in accordance with a resolution of the Directors.
Robert Kirtlan
Chairman
29 September 2023
Renegade Exploration Annual Report for the year ended 30 June 2023 32
Cautionary Statements
Competent Person Statement and Geological Information Sources
The information in this announcement that relates to geological information for the Mongoose and Mt Glorious
Projects is based on information compiled by Mr Edward Fry, who is a full-time employee of the Company. Mr
Fry is a Member of the Australian Institute of Mining and Metallurgy. Mr Fry 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 Fry consents to the inclusion in the report of the matters based on the
information in the form and context in which it appears.
The information in this announcement that relates to geological information for Lady Agnes Project is based on
information compiled by Mr Simon Fleming, who is a consultant to the Company. Mr Fleming is a Member of the
Australian Institute of Mining and Metallurgy. Mr Fleming 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 Fleming consents to the inclusion in the report of the matters based on the information in the
form and context in which it appears.
The references in this announcement to Exploration Results were reported in accordance with Listing Rule 5.7
in the following announcements:
ASX Release Title
Renegade acquires interest in the Carpentaria Joint Venture
Lady Agnes drilling results
Renegade achieves 75% interest in North Isa Project
Renegade assumes control of Mongoose Project
Up to 25% Cu confirms Mongoose high grade copper sulphide
Glorious rock chips from Mt Glorious
Large high-grade copper zones continue at Mongoose
Renegade locks in funding facility
Superb Soils at Mt Glorious Prospect
Date
17 December 2020
8 August 2022
9 January 2023
16 January 2023
8 May 2023
19 June 2023
4 July 2023
20 July 2023
27 July 2023
The company confirms it is not aware of any new information or data that materially affects the information included
in the previous market announcements noted above.
Caution Regarding Forward Looking Statements
This report may contain 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 report.
The forward looking statements are made as at the date of this report 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 Annual Report for the year ended 30 June 2023 33
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 4th 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 Annual Report for the year ended 30 June 2023 34
Financial
Report
Renegade Exploration Annual Report for the year ended 30 June 2023 35
Consolidated Statement of Profit or Loss and Other Comprehensive Income
For the year ended 30 June 2023
Notes
Revenues from continuing operations
Interest revenue
Other income
(Loss)/Gain on revaluation of financial asset
(Loss)/Gain on sale of project
(Loss)/Revenue
Accounting fees
Audit and tax fees
Computer and website expenses
Consultant, employees and directors’ fees
Depreciation
Insurance
Legal expenses
Listing and registry fees
Other expenses
Rent and outgoings
Share based payments
Travel and accommodation
(Loss)/Income from continuing operations before
income tax
(Loss)/Income from discontinued operations
Income tax expense
(Loss)/Income from operations after tax attributable to
members of the parent entity
Other comprehensive income net of tax
Items that may be reclassified subsequently to profit or loss
Foreign currency translation
Other comprehensive income for the year
Total comprehensive (loss)/Income for the year
attributable to members of the parent entity
Profit/(Loss) per share from continuing operations
Basic (loss)/profit per share (cents per share)
Diluted (loss)/profit per share (cents per share)
Profit/(Loss) per share from discontinued operations
Basic (loss)/profit per share (cents per share)
Diluted (loss)/profit per share (cents per share)
10
11
7
27
6
8
18
22
22
22
22
2023
$
2,679
4,313
2022
$
136
-
(568,568)
210,000
-
1,214,776
(561,576)
1,424,912
(36,900)
(49,954)
(6,526)
(36,000)
(44,594)
(6,368)
(403,133)
(274,104)
(16,817)
(42,319)
(3,490)
(46,276)
(108,120)
(38,909)
(105,542)
(110,924)
-
(32,334)
(11,521)
(33,077)
(56,983)
(22,441)
(21,770)
(62,478)
(1,530,486)
823,242
(6,754)
153,395
-
-
(1,537,240)
976,637
8,240
8,240
50,762
50,762
(1,529,000)
1,027,399
(0.17)
(0.17)
(0.0007)
(0.0007)
0.09
0.09
0.02
0.02
The above consolidated statement of profit or loss and other comprehensive income should be read in conjunction with the accompanying notes.
Renegade Exploration Annual Report for the year ended 30 June 2023 36
Consolidated Statement of Financial Position
As at 30 June 2023
Notes
CURRENT ASSETS
Cash and cash equivalents
Other receivables and prepayments
Financial assets /Investments
Assets held for sale
TOTAL CURRENT ASSETS
NON-CURRENT ASSETS
Deferred exploration and evaluation expenditure
Property Plant and Equipment
TOTAL NON-CURRENT ASSETS
TOTAL ASSETS
CURRENT LIABILITIES
Trade and other payables
TOTAL CURRENT LIABILITIES
TOTAL LIABILITIES
NET ASSETS
EQUITY
Contributed equity
Reserves
Accumulated losses
TOTAL EQUITY
19
9
10
5
13
14
15
16
18
17
2023
$
76,669
106,347
113,000
1,143,150
1,439,166
2,325,096
60,450
2,385,546
2022
$
517,861
88,519
2,215,000
1,138,966
3,960,346
997,944
-
997,944
3,824,712
4,958,290
993,593
993,593
1,238,713
1,238,713
993,593
1,238,713
2,831,119
3,719,577
45,370,301
44,956,501
(5,152)
(65,134)
(42,534,030)
(41,171,790)
2,831,119
3,719,577
The above consolidated statement of financial position should be read in conjunction with the accompanying notes.
Renegade Exploration Annual Report for the year ended 30 June 2023 37
Consolidated Statement of Cash Flows
For the year ended 30 June 2023
Notes
CASH FLOWS FROM OPERATING ACTIVITIES
Payments to suppliers and employees
Interest received
Other income
2023
$
2022
$
(966,640)
(307,201)
2,679
4,313
136
-
NET CASH FLOWS (USED IN) OPERATING ACTIVITIES
19(b)
(959,648)
(307,065)
CASH FLOWS FROM INVESTING ACTIVITIES
Payments for exploration & evaluation
Payments for Property Plant and Equipment
Cash transferred to assets held for sale
Proceeds from sale of financial assets
NET CASH FLOWS FROM/(USED IN)
INVESTING ACTIVITIES
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issue of shares
Transaction costs of issue of shares
NET CASH FLOWS FROM FINANCING ACTIVITIES
Net increase /(decrease) in cash and cash equivalents
FX movement
Cash and cash equivalents at beginning of year
CASH AND CASH EQUIVALENTS AT END OF YEAR
19(a)
(1,117,152)
(823,905)
(77,267)
4,486
1,533,432
500,000
(13,349)
800,000
343,499
462,746
175,000
-
175,000
(441,149)
(43)
517,861
76,669
-
-
-
155,681
475
361,705
517,861
The above consolidated statement of cash flows should be read in conjunction with the accompanying notes.
Renegade Exploration Annual Report for the year ended 30 June 2023 38
Consolidated Statement of Changes in Equity
For the year ended 30 June 2023
`
At 1 July 2022
Profit for the year
Other comprehensive income/(loss)
Total comprehensive (loss) for the year
Transactions with owners in their capacity
Issued
Capital
$
44,956,501
-
-
-
Accumulated
Losses
$
(41,171,790)
(1,537,240)
-
(1,537,240)
Share issue
Share based payments
Transfer of FV of exercised options
413,800
-
-
Share
Based
Payment
Reserves
$
353,359
Foreign
Currency
Translation
Reserves
$
(418,493)
Total
$
3,719,577
-
-
-
-
226,742
-
-
175,000
(175,000)
-
(1,537,240)
8,240
8,240
8,240
(1,529,000)
-
-
-
413,800
226,742
-
At 30 June 2023
45,370,301
(42,534,030)
405,101
(410,253)
2,831,119
Issued
Capital
$
Accumulated
Losses
$
Share Based
Payment
Reserves
$
Foreign
Currency
Translation
Reserves
$
Total
$
44,856,501
(42,148,427)
331,589
(469,255)
2,570,408
At 1 July 2021
Profit/(loss) for the year
Other comprehensive income/(loss)
Total comprehensive income for the year
Transactions with owners in their capacity as
-
-
-
976,637
-
976,637
Share issue
100,000
Transaction costs on share issue
Share based payments
Transferred from Share Based Payment
-
-
-
-
-
-
-
-
-
-
-
-
21,770
-
-
976,637
50,762
50,762
50,762
1,027,399
-
-
-
-
100,000
-
21,770
-
At 30 June 2022
44,956,501
(41,171,790)
353,359
(418,493)
3,719,577
The above consolidated statement of changes in equity should be read in conjunction with the accompanying notes.
Renegade Exploration Annual Report for the year ended 30 June 2023 39
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 2023 was authorised for issue in accordance with a resolution of the Directors on 27 September 2023.
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 2023, the Group incurred a loss before tax of $1,537,240 (2022: Income of $976,637) and incurred
net cash outflows of $441,149 (2022: $155,681 net inflows). At 30 June 2023, the Group had net current assets of $445,573
(2022: $2,721,633).
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 sale of its assets;
• The Group has a final minimum payment of $700,000 due in November 2023 on the Yukon Sale Agreement. Subsequent to
the reporting date , the Group has entered into a $700,000 non-dilutionary loan facility to provide access to funding in advance
of receipt of a commensurate amount by way of the remaining deferred consideration payable in respect to the sale of the
Yukon Project, which amounts are expected to be received on or before 30 November 2023; 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 Annual Report for the year ended 30 June 2023 40
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 and Strickland Metals 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 considered the implications of new and amended Accounting Standards as listed below and no changes are
required to the Group’s accounting policies. the Directors have reviewed all of the new and revised Standards and Interpretations
issued by the AASB that are relevant to the Company and effective for the annual financial statements beginning on or after 1
July 2022. As a result of this review, the Directors have determined that their application to the financial statement is either not
relevant or not material.
AASB 2020-3: Amendments to Australian Accounting Standards – Annual Improvements 2018–2020 and Other
Amendments
The Group adopted AASB 2020-3 which makes some small amendments to a number of standards including the following:
AASB 1, AASB 3, AASB 9, AASB 116, AASB 137 and AASB 141.
The adoption of the amendment did not have a material impact on the financial statements.
AASB 2021-7a: Amendments to Australian Accounting Standards – Effective Date of Amendments to AASB 10 and AASB
128 and Editorial Corrections
AASB 2020-7a makes various editorial corrections to a number of standards effective for reporting periods beginning on or
after 1 January 2022. The adoption of the amendment did not have a material impact on the financial statements
New and Amended Accounting Policies Not Yet Adopted by the Entity
AASB 2020-1: Amendments to Australian Accounting Standards – Classification of Liabilities as Current or Non-
current
The amendment amends AASB 101 to clarify whether a liability should be presented as current or non-current.
The Group plans on adopting the amendment for the reporting period ending 30 June 2024 along with the adoption of AASB
2022-6. The amendment is not expected to have a material impact on the financial statements once adopted.
AASB 2022-6: Amendments to Australian Accounting Standards – Non-current Liabilities with Covenants
AASB 2022-6 amends AASB 101 to improve the information an entity provides in its financial statements about liabilities
arising from loan arrangements for which the entity’s right to defer settlement of those liabilities for at least 12 months after
the reporting period is subject to the entity complying with conditions specified in the loan arrangement. It also amends an
example in Practice Statement 2 regarding assessing whether information about covenants is material for disclosure.
The Group plans on adopting the amendment for the reporting period ending 30 June 2024. The amendment is not expected
to have a material impact on the financial statements once adopted.
Renegade Exploration Annual Report for the year ended 30 June 2023 41
AASB 2021-2: Amendments to Australian Accounting Standards – Disclosure of Accounting Policies and
Definition of Accounting Estimates
The amendment amends AASB 7, AASB 101, AASB 108, AASB 134 and AASB Practice Statement 2. These amendments
arise from the issuance by the IASB of the following International Financial Reporting Standards: Disclosure of Accounting
Policies (Amendments to IAS 1 and IFRS Practice Statement 2) and Definition of Accounting Estimates (Amendments to
IAS 8).
The Group plans on adopting the amendment for the reporting period ending 30 June 2024. The impact of the initial
application is not yet known.
AASB 2021-5: Amendments to Australian Accounting Standards – Deferred Tax related to Assets and Liabilities
arising from a Single Transaction
The amendment amends the initial recognition exemption in AASB 112: Income Taxes such that it is not applicable to
leases and decommissioning obligations – transactions for which companies recognise both an asset and liability and that
give rise to equal taxable and deductible temporary differences.
The Group plans on adopting the amendment for the reporting period ending 30 June 2024. The impact of the initial
application is not yet known.
AASB 2021-7b & c: Amendments to Australian Accounting Standards – Effective Date of Amendments to AASB
10 and AASB 128 and Editorial Corrections
AASB 2021-7b makes various editorial corrections to AASB 17 Insurance Contracts which applies to annual reporting
periods beginning on or after 1 January 2023, with earlier application permitted.
AASB 2021-7c defers the mandatory effective date (application date) of amendments to AASB 10 and AASB 128 that were
originally made in AASB 2014-10: Amendments to Australian Accounting Standards – Sale or Contribution of Assets
between an Investor and its Associate or Joint Venture so that the amendments are required to be applied for annual
reporting periods beginning on or after 1 January 2025 instead of 1 January 2018.
The Group plans on adopting the amendments for the reporting periods ending 30 June 2024 and 30 June 2026. The
impact of initial application is not yet known.
AASB 2022-7: Editorial Corrections to Australian Accounting Standards and Repeal of Superseded and Redundant
Standards
AASB 2022-7 makes editorial corrections to the following standards: AASB 7, AASB 116, AASB 124, AASB 128, AASB
134 and AASB as well as to AASB Practice Statement 2. It also formally repeals superseded and redundant Australian
Account Standards as set out in Schedules 1 and 2 to the Standard.
The Group plans on adopting the amendments for the reporting period ending 30 June 2024. The amendment is not
expected to have a material impact on the financial statements once adopted.
The amendment amends the initial recognition exemption in AASB 112: Income Taxes such that it is not applicable to leases
and decommissioning obligations – transactions for which companies recognise both an asset and liability and that give rise
to equal taxable and deductible temporary differences. The Group plans on adopting the amendment for the reporting period
ending 30 June 2024. The impact of the initial application is not yet known
(c) Basis of Consolidation
The consolidated financial statements incorporate all of the assets, liabilities and results of the parent (Renegade Exploration
Limited) and all of the subsidiaries. Subsidiaries are entities the parent controls. The parent controls an entity when it is
exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns
through its power over the entity. A list of the subsidiaries is provided in Note 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
Renegade Exploration Annual Report for the year ended 30 June 2023 42
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.
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.
(d) Income tax
Current tax assets and liabilities for the current and prior periods are measured at the amount expected to be recovered from or
paid to the taxation authorities. The tax rates and tax laws used to compute the amount are those that are enacted or substantively
enacted by the balance date.
Deferred income tax is provided for on all temporary differences at balance date between the tax base of assets and liabilities and
their carrying amounts for financial reporting purposes.
No deferred income tax will be recognised from the initial recognition of goodwill or of an asset or liability, excluding a business
combination, where there is no effect on accounting or taxable profit or loss.
No deferred income tax will be recognised in respect of temporary differences associated with investments in subsidiaries if the
timing of the reversal of the temporary difference can be controlled and it is probable that the temporary differences will not reverse
in the near future.
Deferred tax is calculated at the tax rates that are expected to apply to the period when the asset is realised or liability is settled.
Deferred tax is credited to Profit or Loss except where it relates to items that may be credited directly to equity, in which case the
deferred tax is adjusted directly against equity.
Deferred income tax assets are recognised for all deductible temporary differences, carry forward of unused tax assets and unused
tax losses to the extent that it is probable that future tax profits will be available against which deductible temporary differences
can be utilised.
The amount of benefits brought to account or which may be realised in the future is based on tax rates (and tax laws) that have
been enacted or substantially enacted at the balance date and the anticipation that the Group will derive sufficient future
assessable income to enable the benefit to be realised and comply with the conditions of deductibility imposed by the law. The
Renegade Exploration Annual Report for the year ended 30 June 2023 43
carrying amount of deferred tax assets is reviewed at each balance date and only recognised to the extent that sufficient future
assessable income is expected to be obtained.
Income taxes relating to items recognised directly in equity are recognised in equity and not in the Profit or Loss.
(e) Cash and cash equivalents
Cash and cash equivalents in the Consolidated 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 Consolidated Statement of Financial Position. For the purpose of the Consolidated Statement of Cash
Flows, cash and cash equivalents consist of cash and cash equivalents as described above, net of outstanding bank overdrafts.
(f) Trade and other receivables
Trade receivables, which generally have 30 - 90 day terms, are recognised and carried at original invoice amount less an
allowance for any uncollectible amounts.
Collectability of trade receivables is reviewed on an ongoing basis. Individual debts that are known to be uncollectible are written
off when identified. An impairment provision is recognised when there is objective evidence that the Group will not be able to
collect the receivable. Financial difficulties of the debtor, default payments or debts more than 60 days overdue are considered
objective evidence of impairment. The amount of the impairment loss is the receivable carrying amount compared to the present
value of estimated future cash flows, discounted at the original effective interest rate.
(g) Property, plant and equipment
Each class of property, plant and equipment is carried at cost less, where applicable, any accumulated depreciation and
impairment losses.
Subsequent costs are included in the asset's carrying amount or recognised as a separate asset, as appropriate, only when it is
probable that future economic benefits associated with the item will flow to the group and the cost of the item can be measured
reliably. Repairs and maintenance expenditure is charged to Profit or Loss during the financial period in which it is incurred.
Depreciation
The depreciable amount of most of the fixed assets are depreciated on a diminishing balance method and some of the fixed
assets are depreciated on a straight-line basis over their useful lives to the Group commencing from the time the asset is held
ready for use.
The depreciation rates used for each class of depreciable assets are:
Class of Fixed Asset
Plant and equipment
Computer Equipment
Furniture and Fittings
Camp Buildings
Depreciation Rate
10% to 25%
45%
20%
10%
The assets' residual values and useful lives are reviewed, and adjusted if appropriate, at each reporting date.
Derecognition
Additions of property, plant and equipment is derecognised upon disposal or when no further future economic benefits are
expected from its use or disposal.
Renegade Exploration Annual Report for the year ended 30 June 2023 44
Gains and losses on disposals are determined by comparing proceeds with the carrying amount. These gains and losses are
recognised in the Profit or Loss.
Impairment
Carrying values of plant and equipment are reviewed at each balance date to determine whether there are any objective indicators
of impairment that may indicate the carrying values may be impaired.
Where an asset does not generate cash flows that are largely independent it is assigned to a cash generating unit and the
recoverable amount test applied to the cash generating unit as a whole.
Recoverable amount is determined as the greater of fair value less costs to sell and value in use. The assessment of value in use
considers the present value of future cash flows discounted using an appropriate pre-tax discount rate reflecting the current market
assessments of the time value of money and risks specific to the asset. If the carrying value of the asset is determined to be in
excess of its recoverable amount, the asset or cash generating unit is written down to its recoverable amount.
(h) Exploration expenditure
Exploration and evaluation expenditure incurred by or on behalf of the Group is accumulated separately for each area of interest.
Such expenditure comprises net direct costs and an appropriate portion of related overhead expenditure but does not include
general overheads or administrative expenditure not having a specific nexus with a particular area of interest.
Each area of interest is limited to a size related to a known or probable mineral resource capable of supporting a mining operation.
Exploration and evaluation expenditure for each area of interest is carried forward as an asset provided that one of the following
conditions is met:
•
•
such costs are expected to be recouped through successful development and exploitation of the area of interest
or, alternatively, by its sale; or
exploration and evaluation activities in the area of interest have not yet reached a stage which permits a
reasonable assessment of the existence or otherwise of economically recoverable reserves, and active and
significant operations in relation to the area are continuing.
Expenditure which fails to meet the conditions outlined above is written off, furthermore, the directors regularly review the carrying
value of exploration and evaluation expenditure and make write downs if the values are not expected to be recoverable.
Identifiable exploration assets acquired are recognised as assets at their cost of acquisition, as determined by the requirements
of AASB 6 Exploration for and Evaluation of Mineral Resources. Exploration assets acquired are reassessed on a regular basis
and these costs are carried forward provided that at least one of the conditions referred to in AASB 6 is met.
Exploration and evaluation expenditure incurred subsequent to acquisition in respect of an exploration asset acquired, is
accounted for in accordance with the policy outlined above for exploration expenditure incurred by or on behalf of the entity.
Acquired exploration assets are not written down below acquisition cost until such time as the acquisition cost is not expected to
be recovered.
When an area of interest is abandoned, any expenditure carried forward in respect of that area is written off.
Expenditure is not carried forward in respect of any area of interest/mineral resource unless the Group’s rights of tenure to that
area of interest are current.
Renegade Exploration Annual Report for the year ended 30 June 2023 45
(i)
Impairment of non-financial assets
The Group assesses at each reporting date whether there is an indication that an asset may be impaired. If any such indication
exists, or when annual impairment testing for an asset is required, the Group makes an estimate of the asset’s recoverable
amount. An asset’s recoverable amount is the higher of its fair value less costs to sell and its value in use and is determined for
an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets or
categories of assets and the asset's value in use cannot be estimated to be close to its fair value. In such cases the asset is tested
for impairment as part of the cash generating unit to which it belongs. When the carrying amount of an asset or cash-generating
unit exceeds its recoverable amount, the asset or cash-generating unit is considered impaired and is written down to its
recoverable amount.
In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that
reflects current market assessments of the time value of money and the risks specific to the asset. Impairment losses relating to
continuing operations are recognised in those expense categories consistent with the function of the impaired asset unless the
asset is carried at revalued amount (in which case the impairment loss is treated as a revaluation decrease).
An assessment is also made at each reporting date as to whether there is any indication that previously recognised impairment
losses may no longer exist or may have decreased. If such indication exists, the recoverable amount is estimated. A previously
recognised impairment loss is reversed only if there has been a change in the estimates used to determine the asset’s recoverable
amount since the last impairment loss was recognised. If that is the case the carrying amount of the asset is increased to its
recoverable amount. That increased amount cannot exceed the carrying amount that would have been determined, net of
depreciation, had no impairment loss been recognised for the asset in prior years. Such reversal is recognised in profit or loss
unless the asset is carried at revalued amount, in which case the reversal is treated as a revaluation increase.
After such a reversal the depreciation charge is adjusted in future periods to allocate the asset’s revised carrying amount, less
any residual value, on a systematic basis over its remaining useful life.
(j) 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.
(k) 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.
(l) 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.
Renegade Exploration Annual Report for the year ended 30 June 2023 46
(m) Revenue
Revenue is recognised and measured by the fair value of the consideration received or receivable to the extent that it is probable
that the economic benefits will flow to the Group and the revenue is capable of being reliably measured. The following specific
recognition criteria must also be met before revenue is recognised:
Interest income
Revenue is recognised as the interest accrues (using the effective interest method), which is the rate that exactly discounts
estimated future cash receipts through the expected life of the financial instrument) to the net carrying amount of the financial
asset.
(n) 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.
(o) 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.
(p) 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 26.
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’).
Renegade Exploration Annual Report for the year ended 30 June 2023 47
The cost of the equity settled transactions is recognised, together with a corresponding increase in equity, over the period in which
the performance conditions are fulfilled, ending on the date on which the relevant employees become fully entitled to the award
(‘vesting date’).
The cumulative expense recognised for equity settled transactions at each reporting date until vesting date reflects (i) the extent
to which the vesting period has expired and (ii) the number of awards that, in the opinion of the Directors of the group, will ultimately
vest. This opinion is formed based on the best available information at balance date. No adjustment is made for the likelihood of
the market performance conditions being met as the effect of these conditions is included in the determination of fair value at
grant date. The profit or loss charge or credit for a period represents the movement in cumulative expense recognised at the
beginning and end of the period.
No expense is recognised for awards that do not ultimately vest, except for awards where vesting is conditional upon a market
condition.
Where the terms of an equity settled award are modified, as a minimum an expense is recognised as if the terms had not been
modified. In addition, an expense is recognised for any increase in the value of the transaction as a result of the modification, as
measured at the date of the modification.
Where an equity settled award is cancelled, it is treated as if it had vested on the date of the cancellation, and any expense not
yet recognised for the award is recognised immediately. However, if a new award is substituted for the cancelled award, and
designated as a replacement award on the date that it is granted, the cancelled and new award are treated as if they were a
modification of the original award, as described in the previous paragraph.
The dilutive effect, if any, of outstanding options is reflected in the computation of loss per share (see note 21).
(q) 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 Consolidated Statement of Financial Position.
Cash flows are presented in the Consolidated 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.
(r)
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.
(s) 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.
Renegade Exploration Annual Report for the year ended 30 June 2023 48
Transactions and balances
Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the
transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at
year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the profit or loss.
Group entities
The results and financial position of all the Group entities (none of which has the currency of a hyperinflationary economy) that
have a functional currency different from the presentation currency are translated into the presentation currency as follows:
•
•
•
•
assets and liabilities are translated at the closing rate at the date of that Statement of Financial Position;
income and expenses are translated at average exchange rates (unless this is not a reasonable approximation of the
rates prevailing on the transaction dates, in which case income and expenses are translated at the dates of the
transactions);
retained earnings are translated at the exchange rates prevailing at date of transaction; and
all resulting exchange differences are recognised as a separate component of equity.
On consolidation, exchange differences arising from the translation of any net investment in foreign entities, and of borrowings
and other financial instruments designated as hedges of such investments, are taken to shareholders’ equity. When a foreign
operation is sold the exchange differences relating to that entity are recognised in the profit or loss, as part of the gain or loss on
sale where applicable.
(t) 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.
(u) 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.
(v) 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.
Renegade Exploration Annual Report for the year ended 30 June 2023 49
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.
(w) 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 investment in share of Rafaella Resources Limited and Strickland Metals which
are Tier 1 assets.
(x) 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 Level 3.
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
Renegade Exploration Annual Report for the year ended 30 June 2023 50
(ii) if significant inputs that were previously unobservable (Level 3) became observable (Level 2) 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.)
(y) 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 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.
Renegade Exploration Annual Report for the year ended 30 June 2023 51
Financial assets at fair value through other comprehensive income (Equity instruments)
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 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 amortized 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
The Group assesses on a forward looking basis the expected credit losses associated with its debt instruments carried at
amortized 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.
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
Renegade Exploration Annual Report for the year ended 30 June 2023 52
resources and ore reserves was prepared by or under the supervision of Competent Persons as defined in the JORC code. The
amounts presented are based on the mineral resources and ore reserves determined under the JORC code.
There are numerous uncertainties inherent in estimating mineral resources and ore reserves and assumptions that are valid at
the time of estimation may change significantly when new information becomes available.
Changes in the forecast prices of commodities, exchange rates, production costs or recovery rates may change the economic
status of reserves and may, ultimately, result in the reserves being restated. Such changes in reserves could impact on
depreciation and amortisation rates, asset carrying values, deferred stripping costs and provisions for decommissioning and
restoration.
Capitalised exploration and evaluation expenditure
The future recoverability of capitalised exploration and evaluation expenditure is dependent on a number of factors, including
whether the Group decides to exploit the related lease itself or, if not, whether it successfully recovers the related exploration and
evaluation asset through sale.
Factors which could impact the future recoverability include the level of proved, probable and inferred mineral resources, future
technological changes which could impact the cost of mining, future legal changes (including changes to environmental restoration
obligations) and changes to commodity prices.
To the extent that capitalised exploration and evaluation expenditure is determined not to be recoverable in the future, this will
reduce profits and net assets in the period in which this determination is made.
In addition, exploration and evaluation expenditure is capitalised if activities in the area of interest have not yet reached a stage
which permits a reasonable assessment of the existence or otherwise of economically recoverable reserves. To the 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.
Renegade Exploration Annual Report for the year ended 30 June 2023 53
5. Assets Held for Sale
2023
$
2022
$
Deferred exploration and evaluation expenditure
1,133,830
1,125,547
Cash and cash equivalents
Other receivables and prepayments
Assets Held for Sale
8,863
457
13,349
70
1,143,150
1,138,966
During the financial year 2021, the Company entered into two contracts for sale of its Yukon (Canada) and Yandal East (Australia)
projects. At the reporting date, the transaction for sale of Yukon (Canada) is not complete, so the assets related to said project
have been classified as held for sale. Refer to Note 15 3
6. Profit/(Loss) from Discontinued Operations
Other income
General office expenses
Other expenses
(Loss)/Income from discontinued operations
7. Other expenses
Conferences and seminars
Printing and stationery
Telecommunications
Others
Total other expenses
8. Income Tax
a) Income tax expense
Current tax
Deferred tax
Income tax expense
2023
$
-
-
(6,754)
(6,754)
2023
$
14,399
6,846
831
86,044
108,120
2022
$
161,717
(5,528)
(2,794)
153,395
2022
$
13,180
2,308
-
41,495
56,983
2023
2022
$
-
-
-
$
-
-
-
Renegade Exploration Annual Report for the year ended 30 June 2023 54
(b) Numerical reconciliation between aggregate tax expense recognised in the statement of profit or loss and other
comprehensive income and tax expense calculated per the statutory income tax rate
A reconciliation between tax expense and the product of accounting profit
before income tax multiplied by the Company’s applicable tax rate is as
follows:
(Loss)/Income from all operations before income tax expense
Tax at the company rate of Aus. 25%, Canada 27% (2022: Aus
26%, Canada 27%)
Allowable deductions
Tax effect of permanent differences
Other non-deductible expenses
Other non-assessable income
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
Prepayments
Unrealised gain on shares
Offset by deferred tax assets
Deferred tax liability recognised
Assets
Losses available to offset against future taxable income
(Aus. at 25%, Canada 27%)
Foreign exchange loss
Share issue cost deductible over five years
Accrued expenses
Other
Deferred tax assets offset against deferred tax liabilities
Deferred tax assets not brought to account as realisation is not regarded as
probable
Deferred tax asset recognised
Unused tax losses
Potential tax benefit of unused tax losses not recognised at
Aus.25%, Canada 27% (2021: Aus. 26%, Canada 27%)
2023
$
2022
$
(1,537,240)
(384,445)
(603,284)
26,385
173,401
787,942
-
2023
$
887,408
11,117
54,000
976,637
247,227
(28,006)
5,443
7,375
(52,500)
(179,539)
-
2022
$
540,521
8,319
54,500
(952,525)
(603,340)
-
-
14,587,476
13,394,780
-
1,991
22,940
16,100
-
2,986
7,375
14,628,507
13,405,141
(952,525)
(603,340)
(13,675,982)
(12,801801)
-
-
55,162,809
48,259,323
13,675,982
12,801,801
Renegade Exploration Annual Report for the year ended 30 June 2023 55
The benefit for tax losses will only be obtained if:
(i)
the Company derives future assessable income in Australia of a nature and of an amount sufficient to enable the
benefit from the deductions for the losses to be realised;
(ii)
(iii)
the Company continues to comply with the conditions for deductibility imposed by tax legislation in Australia; and
no changes in tax legislation in Australia, adversely affect the Company in realising the benefit from the deductions
for the losses.
(d) Tax consolidation
Renegade Exploration has not formed a tax consolidation group and there is no tax sharing agreement.
9. Other Receivables and Prepayments - Current
GST / VAT receivable
Debtors
Rental Bond
Other Receivables
Prepayments
Total other receivables and prepayments - current
2023
$
54,768
1,000
6,500
-
44,079
106,347
2022
$
42,627
7,515
5,100
-
33,277
88,519
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.
2023
$
2022
$
10 Carrying value of Financial assets
113,000
2,215,000
Movements in financial
assets
Balance at beginning of
period
Investment in quoted
securities1
Investment sold during the
period
Loss on disposals
Fair value adjustment2
Balance at end of period
2023
2022
Number
of shares
$
Number
of shares
$
40,500,000
2,215,000
500,000
45,000
-
-
40,000,000
1,960,000
(37,500,000)
-
-
3,000,000
(1,533,432)
(566,568)
(2,000)
113,000
-
-
-
40,500,000
-
-
210,000
2,215,000
1 Renegade holds 500,000 shares of Rafaella Resources (30 June 2022: 500,000). During the 2022 reporting period, the Company
was issued 40,000,000 shares @ $0.049 on 16 July 2021 of Strickland Metals Limited (ASX: STK) as part of the consideration for
sale of Yandal East Project.
Renegade Exploration Annual Report for the year ended 30 June 2023 56
2At the reporting date, the fair value adjustment of ($2,000) comprises of $4,500 loss on revaluation of Rafaella Resources shares
and a gain of $2,500 of Strickland shares .
11. Gain on Sale of Project
$
$
2023
2022
Fair value of Consideration received1
Less: Carrying value of assets as at date of sale
Gain on sale of project
-
-
-
2,760,000
(1,545,224)
1,214,776
On 9 June 2021, the Company announced the sale of its Yandal East Project to Strickland Metals Limited. The sale transaction
was completed on 16 July 2021, gain on sale of assets is calculated and recognised in the profit or loss statement.
1 This includes $800,000 received in cash as part of the consideration and remaining was paid by issuance of 40 million shares
to Renegade on 16 July 2021, the fair value of the 40 million shares was measured at $1,960,000 (40,000,000@$.049) on 16 July
2021.
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 (c). Details of subsidiaries are as follows:
Name
Country of incorporation
% Equity Interest
Overland Resources Yukon Limited
Renegade Exploration (QLD) Pty Ltd
Canada
Australia
13. Deferred Exploration and Evaluation Expenditure
2023
100%
100%
2022
100%
100%
Exploration and evaluation expenditure
At cost
Accumulated provision for impairment
Less : Assets classified as held for sale
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 sale
Net exchange differences on translation
Carrying amount at end of year
2023
$
2022
$
2,325,096
997,944
-
-
-
-
2,325,096
997,944
997,944
1,327,152
460,349
537,595
-
-
-
-
-
-
2,325,096
997,944
Renegade Exploration Annual Report for the year ended 30 June 2023 57
The recoverability of the carrying amount of the capitalised exploration and evaluation expenditure is dependent on the successful
development and commercial exploitation, or alternatively the sale, of the respective areas of interest.
Exploration and evaluation expenditure during the year include the cost of acquiring 75 percent interest in North Isa project by
issuing 10 million ordinary shares and 25 million Performance rights on 10 January 2023 under the option agreement with Burke
Copper Pty Ltd. The share price was $0.006 at the grant date. Performance rights conversion to ordinary shares is subject to
satisfaction of one of the following milestones:
I.
Measured JORC compliant open pit Inferred Resource (verified by Independent Third Party) utilising a cut off of 0.3% to
define a minimum 1Mt @ minimum copper grade, or its equivalent, of 1% for 10,000t of contained copper, or its
equivalent; or
II.
Measured JORC compliant underground Inferred Resource (verified by Independent Third Party) utilising a cut off of
0.3% to define a minimum 2Mt @ minimum copper grade, or its equivalent, of 3% for 30,000t of contained copper, or its
equivalent; and
III.
The Performance Rights will expire if the performance milestones have not been satisfied within five years of issue and
will also lapse in other certain circumstances such as sale or withdrawal from the project by Renegade.
14. Property Plant and Equipment
Year ended 30 June 2023
Motor Vehicles
Plant and
Equipment
Total
$
$
$
Opening net book value
-
-
-
Additions
Disposal
Depreciation Charge
Net Book Value
25,000
52,267
77,267
-
-
-
(6,252)
(10,565)
(16,817)
18,748
41,702
60,450
15. Current and Non-Current Liabilities
(a) Current Trade and other payables
Trade payables1
Accruals
CJV Consideration payable2
PAYG Payable
Superannuation Payable
Premium Funding less Unexpired Interest
Advance for sale of Yukon Project3
2023
$
82,098
102,053
-
19,767
8,753
30,922
750,000
993,593
2022
$
251,640
53,059
150,000
4,348
2,864
26,802
750,000
1,238,713
1Due to the short-term nature of these payables, their carrying value is assumed to approximate their fair value.
2 Includes $150,000 remaining payable for acquisition of 23.03% interest in Carpentaria JV. The amount was paid by issuance
of 10 million shares on 9 May 2023. Refer to Note 16(a).
Renegade Exploration Annual Report for the year ended 30 June 2023 58
3 This represents the payments received from Scharfe as part of the total consideration of $1,450,000 for sale of the Yukon Project
as per the Share Purchase Agreement (SPA) signed on 30 November 2020. In July 2021, the Group agreed to amend the terms
of the SPA with respect to the sale of the Company’s Yukon Project with Scharfe Holdings Inc. (Scharfe) which included an
immediate payment of $500,000, paid to the Company on 4 August 2021. The terms of the Share Purchase have been amended
as follows:
a) Tranche 2 and Tranche 3 was replaced with a payment of AUD500,000 on or before 30 July 2021, which the Company
received on 4 August 2021;
b) The deadline to spend CAD500,000 on the project has been amended from 31 December 2021 to 30 November 2023;
and
c) If the Expenditure is not made by 30 November 2023, Scharfe will pay AUD300,000 to Renegade in lieu of the
Expenditure.
16. Contributed Equity
(a) Issued and paid up capital
Ordinary shares fully paid
2023
$
2022
$
45,370,301
44,956,501
2023
2022
Number of
shares
$
Number of
shares
$
(b) Movements in ordinary shares on issue
Balance at beginning of year
889,626,638
44,956,501
879,626,638
44,856,501
Shares issue at $0.007 on 04 October 20221
Shares issue at $0.005 on 28 November 2022
Shares issue at $0.006 on 10 January 2023
Shares issue at $0.010 on 04 April 20232
Shares issue at $0.005 on 04 April 2023
2,057,142
30,000,000
10,000,000
1,440,000
5,000,000
14,400
150,000
60,000
14,400
25,000
-
-
-
-
-
-
10,000,000
100,000
Shares issue at $0.015 on 09 May 2023
10,000,000
150,000
Transaction costs on share issue
Balance at end of year
-
-
-
-
948,123,780
45,370,301
889,626,638
44,956,501
(c) Ordinary shares
The Group does not have authorised capital nor par value in respect of its issued capital. Ordinary shares have the right to receive
dividends as declared and, in the event of a winding up of the Company, to participate in the proceeds from sale of all surplus
assets in proportion to the number of and amounts paid up on shares held. Ordinary shares entitle their holder to one vote, either
in person or proxy, at a meeting of the Company.
(d) Capital Risk Management
The Group’s capital comprises share capital, reserves less accumulated losses amounting to $2,831,119 at 30 June 2023 (2022:
$3,719,577). 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
25 for further information on the Group’s financial risk management policies.
Renegade Exploration Annual Report for the year ended 30 June 2023 59
(e) Share options
At 30 June 2023, there were 85,000,000 unissued ordinary shares under options (2022: 70,000,000 options). 35 million options
were exercised during the financial year and 50 million options were issued . 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 26.
1 2,057,142 fully paid ordinary shares issued to Republic Public Relation Pty against provision of services. There service was provided in a six-month period commencing 1 September 2022
until 31 March 2023.
2 1,440,000 fully paid ordinary shares issued to Republic Public Relation Pty against provision of services. There service provided in a six-month period commencing 1 September 2022 until 31
March 2023
17. Accumulated Losses
Movements in accumulated losses were as follows:
At 1 July
Income/(Loss) for the year
Transfer from Reserves1
At 30 June
2023
$
(41,171,790)
(1,537,240)
175,000
2022
$
(42,148,427)
976,637
-
(42,534,030)
(41,171,790)
1 Amount represents the reserve created for the issuance of options to directors and consultants in the prior years which
has been transferred to accumulated losses upon expiry of the options not exercised.
18. Reserves
Share based payments reserve
Foreign currency translation reserve
At 30 June
Movement in reserves:
Share based payments reserve
Balance at beginning of year
Transfer to Accumulated losses
Equity benefits expense
Balance at end of year
2023
$
405,101
(410,253)
(5,152)
353,359
(175,000)
226,742
405,101
2022
$
353,359
(418,493)
(65,134)
331,589
-
21,770
353,359
Renegade Exploration Annual Report for the year ended 30 June 2023 60
Foreign currency translation reserve
Balance at beginning of year
Foreign currency translation
Balance at end of year
2023
$
(418,493)
8,240
(410,253)
2022
$
(469,255)
50,762
(418,493)
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
(a) Reconciliation of cash
Cash balance comprises:
Cash and cash equivalents
(b) Reconciliation of the net income/(loss) after
tax to the net cash flows from operations
Net (loss)/Income after tax
Adjustments for:
Depreciation
Share Based Payments
Gain on revaluation of investment
Provision for impairment of exploration expenditure
Gain on sale of project
Changes in operating assets and liabilities:
Increase/(Decrease) in other receivables/prepayments
Increase/(Decrease) in trade and other payables
(Decrease) in Provision
Net cash flow used in operating activities
20. Expenditure Commitments
2023
$
76,669
76,669
2022
$
517,861
517,861
(1,537,240)
976,637
16,816
105,542
414,500
-
154,068
(18,215)
(95,119)
-
(959,648)
-
21,770
(210,000)
-
(1,214,776)
24,885
94,419
-
(307,065)
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
21. Subsequent events
2023
$
150,000
2022
$
150,000
Renegade sold the balance of its share portfolio in July 2023 for net proceeds of $91,483.
Renegade Exploration Annual Report for the year ended 30 June 2023 61
Renegade entered into a Loan Facility Agreement on 20 July 2023. The facility is for up to $700,000 at an interest
rate of 12%pa for six months and is secured against the outstanding Yukon Option Agreement amount outstanding
Other than as disclosed elsewhere within this report there are no matters or circumstances have arisen since the end of the
financial period which significantly affected or may significantly affect the operations of the Company, the results of those
operations, or the state of affairs of the Company in future financial years.
22. Profit/(Loss) per share
(Loss) /Gain used in calculating basic and dilutive EPS
Weighted average number of ordinary shares used in calculating basic earnings /
loss) per share:
Effect of dilution:
Share options
2023
$
(1,537,240)
2022
$
976,637
Number of Shares
2023
2022
916,376,367
880,941,706
-
-
Adjusted weighted average number of ordinary shares used in calculating
diluted ( loss)/ profit per share:
916,376,367
907,191,706
Basic and Diluted ( loss )/ profit per share (cents per share) from continuing
operations
Basic and Diluted profit/( loss) per share (cents per share) from
discontinued operations
(0.17)
(0.0007)
0.09
0.02
The 85,000,000 options outstanding at 30 June 2023 (2022: 70,000,000 options) have a dilutive effect on the profit /(loss) per
share calculation.
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 current year financial report of the Company
Total auditor’s remuneration
2023
$
43,500
43,500
2022
$
39,500
39,500
Renegade Exploration Annual Report for the year ended 30 June 2023 62
24. Key Management Personnel Disclosures
(a) Details of Key Management Personnel
Mr. Robert Kirtlan
Executive Chairman
Mr. Mark Wallace
Non-Executive Director
Mr. Mark Connelly
Non-Executive Director
(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:
2023
$
428,000
18,438
446,438
2022
$
339,500
21,770
361,270
Short term employee benefits
Share based payments
Total remuneration
25. Related Party Disclosures
The ultimate parent entity is Renegade Exploration Limited.
There were no related party disclosures for the year ended 30 June 2023 (2022: 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 2023 and 30 June 2022, all financial liabilities
are contractually maturing 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.
Renegade Exploration Annual Report for the year ended 30 June 2023 63
The Group’s exposure to market risk for changes to interest rate risk relates primarily to its earnings on cash and term deposits.
The Group manages the risk by investing in short term deposits.
Cash and cash equivalents
Interest rate sensitivity
2023
$
76,669
2022
$
517,861
The following table demonstrates the sensitivity of the Group’s consolidated statement of profit or loss and other comprehensive
income to a reasonably possible change in interest rates, with all other variables constant.
Change in Basis Points
Effect on Post Tax Loss
Effect on Equity
Judgements of reasonably possible
movements
Increase 100 basis points
Decrease 100 basis points
Increase/(Decrease)
including accumulated losses
2023
$
77
(767)
Increase/(Decrease)
2023
$
77
(767)
2022
$
5,179
(5,179)
2022
$
5,179
(5,179)
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 2022.
(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 Consolidated statement of
financial position. The Group holds financial instruments with credit worthy third parties.
At 30 June 2023, 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 2023
(2022: 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.
Renegade Exploration Annual Report for the year ended 30 June 2023 64
(e) Fair Value
The aggregate net fair values of the Consolidated Entity’s financial assets and financial liabilities both recognised and
unrecognised are as follows:
Carrying Amount in
the Financial
Statements
2023
$
Aggregate Net Fair
Value
2023
$
Carrying Amount in
the Financial
Statements
2022
$
Aggregate Net Fair Value
2022
$
76,669
62,268
113,000
76,669
62,268
113,000
517,861
55,242
2,215,000
517,861
55,242
2,215,000
Financial Assets
Cash Assets
Receivables
Investment in Shares
Financial Liabilities
Payables
993,593
993,593
1,238,713
1,238,713
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.
27. Share Based Payment Plans
(a) Employee Share option Plan (ESOP)
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.:
Options
Grant
Expiry date Issued to Exercise
Balance at
Granted
Exercised
Expired
Balance at
Exercisable
date
price
start of the
during the
during the
during the
end of the
at end of
year
year
year
year
year
the year
Number
Number
Number
Number
Number
30/11/2020 30/11/2023 KMP
$0.005
30,000,000
30/11/2020 30/11/2023 KMP
$0.005
25,000,000
30/11/2020 30/11/2023 KMP
$0.005
5,000,000
30/11/2020 30/11/2023 KMP
$0.005
5,000,000
30/11/2020 30/11/2023 KMP
$0.005
5,000,000
Weighted remaining contractual life (years)
Weighted average exercise price
70,000,000
0.42
$0.005
-
-
-
-
-
-
(30,000,000)
-
-
(5,000,000)
-
(35,000,000)
-
-
-
-
-
-
-
-
25,000,000 25,000,000
5,000,000 5,000,000
-
-
5,000,000 5,000,000
35,000,000 35,000,000
0.419
0.419
$0.005
$0.005
Renegade Exploration Annual Report for the year ended 30 June 2023 65
Performance rights
Grant date Expiry date Issued to Exercise
Balance at
Granted
Exercised
Expired
Balance at
Exercisable
price
start of the
during the
during the
during the
end of the
at end of
year
year
year
year
year
the year
Number
Number
Number
Number
Number
29/11/2022 02/12/2024 KMP
$0.000
29/11/2022 02/12/2025 KMP
$0.000
14/10/2022 07/11/2024 Employee $0.000
Weighted remaining contractual life (years)
Weighted average exercise price
-
-
-
-
5,000,0001
10,000,0002
10,000,0003
25,000,000
1.74
$0.000
-
-
-
-
-
-
-
-
5,000,000 5,000,000
10,000,000 10,000,000
10,000,000 10,000,000
25,000,000 25,000,000
1.74
1.74
$0.000
$0.000
1Issued in three tranches to Mark Connelly. These were approved at the annual general meeting held on 29 September 2022.
Tranches 1, 2 and 3 have service-related vesting conditions and will vest over a two-year period. All options expire after two
years if not exercised.
2 Issued in three tranches. Tranche 4- 2 million shares will vest upon achieving the VWAP hurdle of 0.01, Tranche 5- 3 million
shares will vest upon achieving the VWAP hurdle of 0.02 and Tranche 6- 5 million shares will vest upon achieving the VWAP
hurdle of 0.03.
3 Total 10 million performance rights issued in 2 tranches and have service-related vesting conditions. 5 million shares vest after
6 months and remaining 5 million after 12 months. All performance rights expire after two years.
(b) Performance rights to External Parties (North Isa Project)
To acquire 75% interest in North Isa project and In accordance with the terms of achieving the expenditure milestones and
lodgement of all necessary documentation with the Queensland Department of Mines, The Group has issued 25 million
performance rights to Burke Copper Pty Ltd (converting to ordinary fully paid shares on a one for one basis ) subject to satisfaction
of the performance milestones as announced in the ASX release on 10 January 2023. Refer to Note 13.
Details of performance rights granted are as follows:
2023
Grant date Expiry date
Exercise
Balance at
Granted
Exercised
Expired
Balance at
Exercisable
price
start of the
during the
during the
during the
end of the
at end of
10/01/2023 10/01/2028
$0.000
year
year
year
year
year
the year
Number
Number
Number
Number
Number
-
-
25,000,000
25,000,000
-
-
-
-
25,000,000 25,000,000
25,000,000 25,000,000
Weighted remaining contractual life (years)
Weighted average exercise price
4.53
$0.000
4.53
4.53
$0.000
$0.000
Renegade Exploration Annual Report for the year ended 30 June 2023 66
2022
Grant date Expiry date Exercise
Balance at
Granted
price
start of the
during the
year
year
Exercised
during the year
Expired
Balance at
Exercisable
during the
end of the
at end of the
year
year
year
Number
Number
Number
Number
Number
30/11/20 30/11/2023
$0.005
30,000,000
30/11/20 30/11/2023
$0.005
25,000,000
30/11/20 30/11/2023
$0.005
30/11/20 30/11/2023
$0.005
30/11/20 30/11/2023
$0.005
5,000,000
5,000,000
5,000,000
70,000,000
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
30,000,000
30,000,000
25,000,000
25,000,000
5,000,000
5,000,000
5,000,000
5,000,000
5,000,000
5,000,000
70,000,000
70,000,000
Weighted remaining contractual life
(years)
2.42
Weighted average exercise price
$0.005
Fair Value of performance rights
1.42
1.42
$0.005
$0.005
The Company issued 50 million performance rights during the year and these were valued using the share price on the grant date.
Performance right
Number of
Grant date
Share price at
Total fair
holder
performance rights
grant price ($)
value ($)
Director
Employee
Burke Copper Pty Ltd
15,000,000
10,000,000
25,000,000
29/11/2022
14/10/2022
10/01/2023
0.006
0.007
0.006
90,000
70,000
150,000
28. Contingent Assets and Liabilities
The Company expects to receive $700,000 for the sale of its subsidiary Overland Resources Yukon Limited by 30 November 2023
as per the Sale and Purchase Agreement (SPA) refer ASX announcement 05 October 2020 and the subsequent variations to the
terms refer ASX announcement 28 July 2021. The Company expects to receive a further $300,000 in the event the Option holder
doesn’t expend $500,000 on exploration before the Option expiry date, is due on or before 30 November 2023.
There are no known contingent liabilities as at 30 June 2023 (2022: Nil).
Renegade Exploration Annual Report for the year ended 30 June 2023 67
29. Operating Segment
For management purposes, the Group is organised into two geographical operating segment, Australia and Canada, which
involves mining exploration for zinc and gold. 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 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
30. Dividends
2023
$
2022
$
296,016
1,143,150
2,821,380
1,138,966
2,385,546
997,944
-
-
3,824,712
4,958,290
993,593
1,238,716
-
-
-
-
-
-
993,593
1,238,716
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
2023 (2022: Nil). The balance of the franking account as at 30 June 2023 is Nil (2022: Nil).
31. Information relating to Renegade Exploration Limited (“the parent entity”)
Current assets
Non-current assets
Total Assets
Current liabilities
Non-current liabilities
Total Liabilities
Net Assets
Issued capital
Accumulated losses
Share based payment reserve
Total Equity
2023
$
2022
$
296,027
2,821,380
2,385,546
2,681,573
990,895
-
990,895
1,690,678
997,944
3,819,324
1,238,713
-
1,238,713
2,580,611
45,370,301
44,956,501
(44,084,725)
(42,729,249)
405,102
353,359
1,690,678
2,580,611
(Loss) /Profit of the parent entity
Total comprehensive loss) / Income of the parent entity
(1,530,486)
703,679
(1,530,486)
703,679
Renegade Exploration Annual Report for the year ended 30 June 2023 68
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 2023 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 2023.
On behalf of the Board,
Robert Kirtlan
Chairman
29 September 2023
PO Box 1908
West Perth WA 6872
Australia
Level 2, 40 Kings Park Road
West Perth WA 6005
Australia
Tel: +61 8 9481 3188
Fax: +61 8 9321 1204
ABN: 84 144 581 519
www.stantons.com.au
29th September 2023
Board of Directors
Renegade Exploration Limited
C/- Unit 13
6-10 Duoro Place
West Perth WA 6005
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 2023, I declare that to the best of my knowledge and belief, there have been no
contraventions of:
(i)
(ii)
the auditor independence requirements of the Corporations Act 2001 in relation to the audit; and
any applicable code of professional conduct in relation to the audit.
Yours sincerely
STANTONS INTERNATIONAL AUDIT AND CONSULTING PTY LTD
(An Authorised Audit Company)
Samir R Tirodkar
Director
Liability limited by a scheme approved under Professional Standards Legislation
Stantons Is a member of the Russell
Bedford International network of firms
PO Box 1908
West Perth WA 6872
Australia
Level 2, 40 Kings Park Road
West Perth WA 6005
Australia
Tel: +61 8 9481 3188
Fax: +61 8 9321 1204
ABN: 84 144 581 519
www.stantons.com.au
INDEPENDENT AUDITOR’S REPORT
TO THE MEMBERS OF
RENEGADE EXPLORATION LIMITED
Report on the Audit of the Financial Report
Our Opinion
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 2023, 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 2023 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 confirm that the independence declaration required by the Corporations Act 2001, which has been given
to the directors of the Company, would be in the same terms if given to the directors as at the time of this
report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
opinion.
Liability limited by a scheme approved under Professional Standards Legislation
Stantons Is a member of the Russell
Bedford International network of firms
Material Uncertainty Related to Going Concern
Without modifying our audit opinion, attention is drawn to the following matter:
As referred to in Note 2 to the financial statements, the financial statements have been prepared on the going
concern basis. At 30 June 2023, the Group had cash and cash equivalents totalling $76,669. For the year
ended 30 June 2023, the Group had net cash outflows from operating, investing and financing activities of
$441,149 and incurred a loss before tax from continuing operations of $1,537,240. The Group’s ability to
continue operations is dependent upon the Company’s ability to raise funds from the capital markets and/or
sale of its assets, curtailing administration and operational cashflows and/or developing the Group’s mineral
assets. These events or conditions, along with other matters as set forth in Note 2, indicate that a material
uncertainty exists that may cast significant doubt on the Group’s ability to continue as a going concern.
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 year. 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.
Key Audit Matters
How the matter was addressed in the audit
Carrying value of the Deferred exploration
and evaluation expenditure and the Assets
held for sale
Inter alia, our audit procedures included the
following:
As at 30 June 2023, Deferred exploration and
evaluation expenditure totalled $2,325,096 (refer
to Note 13 of the financial report) and the Assets
held for sale related totalled $1,143,150 (refer to
Note 5 of the financial report).
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.
The carrying value of these assets is a key audit
matter due to:
• The significance of their amount as they
represent the largest assets and constitute
90% of the total assets as at 30 June 2023.
to assess management’s
• The necessity
the
the requirements of
application of
accounting standard Exploration for and
Evaluation of Mineral Resources (“AASB 6”),
in light of any indicators of impairment that
may be present and the requirements of the
accounting standard Non-current Assets
Held for Sale and Discontinued Operations
(“AASB 5”).
• The assessment of management's significant
capitalised
concerning
judgements
exploration and evaluation expenditure.
the
ii. Reviewing the directors’ assessment of the
carrying value of the capitalised exploration
and evaluation costs, ensuring the veracity
of
the data presented and assessing
management’s consideration of potential
impairment
the
requirements of AASB 6.
indicators
line with
in
the
documents
intentions
iii. Evaluating Group’s
for
for
consistency with
continuing exploration and evaluation
interest and
activities
corroborated
with
documents we
management.
evaluated included:
in areas of
in
The
discussions
▪ Minutes of meetings of the Board and
management;
the
Announcements made
Company to the Australian Securities
Exchange; and
Cash flow forecasts.
by
▪
▪
iv. Considering the requirements of accounting
standard AASB 6 and
the
financial statements to ensure appropriate
disclosures are made; and
reviewing
v. Considering the requirements of accounting
standard AASB 5 and ensuring correct
reclassification has been presented and
adequate disclosures made in the financial
report.
Valuation of Share-based payments
As disclosed in note 27 of the financial report, the
Company granted performance rights to Director and
employee of the Company. In addition, as disclosed in
Note 16 of the financial report, shares were issued to
vendors in relation to investor relation and corporate
communication services. Share-based payments
expense recognized for the year ended 30 June 2023
amounted to $105,542.
The Company accounted for these shares and
performance rights in accordance with its accounting
policy and the accounting standard AASB 2 - Share-
based Payment.
Measurement of share-based payments was a key
audit matter due to estimates used in determining the
fair value of the equity instruments granted, the grant
date, vesting conditions and vesting periods.
In assessing the valuation of share-based payment,
our audit procedures included, among others:
i. Obtaining an understanding of the underlying
transactions, reviewing agreements, minutes of
the Board meeting and ASX announcements.
ii. Verifying the terms and conditions of the share
based payments including the vesting period and
other key assumptions used in valuing these
share based payments;
iii. Assessing the accounting treatment and its
application in accordance with AASB 2; and
iv. Assessing the adequacy of disclosure made by
the Group in the financial report.
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 2023 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.
Report on the Remuneration Report
Opinion on the Remuneration Report
We have audited the Remuneration Report included in the directors’ report for the year ended 30 June 2023.
In our opinion, the Remuneration Report of Renegade Exploration Limited for the year ended 30 June 2023
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
(An Authorised Audit Company)
Samir R Tirodkar
Director
West Perth, Western Australia
29 September 2023
Renegade Exploration Annual Report for the year ended 30 June 2023 75
Shareholder Information
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 12 September 2023.
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
45
10
16
296
470
837
Total Units
7,309
28,244
136,673
18,390,078
934,561,476
953,123,780
0.00%
0.00%
0.01%
1.93%
98.05%
100%
There are 209 shareholders holding less than a marketable parcel of ordinary shares.
SUBSTANTIAL SHAREHOLDERS
Holder Name
SIERRA WHISKEY PTY LIMITED
Holding
48,100,000
% IC
5.05%
VOTING RIGHTS
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 Annual Report for the year ended 30 June 2023 76
TOP 20 SHAREHOLDERS
Position
Holder Name
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
18
18
18
19
20
SIERRA WHISKEY PTY LIMITED
DIMENSIONAL HOLDINGS PTY LTD
MS PHAROTH SAN & MR KADEN SAN
SOVEREIGN METALS LIMITED
BARTORILLA ENTERPRISES PTY LTD
ROMFORD CONSULTING PTY LTD
MR MARK TRENT
MR MICHAEL ZOLLO
JCR INVESTMENTS CO P/L
MR ANTON WASYL MAKARYN &
MRS MELANIE FRANCES MAKARYN
OUTLAND INVESTMENTS PTY LTD
ZEBINA MINERALS PTY LTD
MOTTA PROPERTY INVESTMENTS PTY LTD
MR MICHAEL DAVIES
M T & G K INVESTMENTS PTY LTD
MR ADRIAN ALEXANDER VENUTI
ARK SECURITIES & INVESTMENTS PTY LTD
RIDGEFIELD CAPITAL ASSET MANAGEMENT LP
GEISHA POSSUM HOLDINGS PTY LTD
DIMENSIONAL HOLDINGS PTY LTD
WABI-SABI TRADING COMPANY PTY LTD
MR ANTHONY NEWMAN
168 SC WEALTH INVESTMENT PTY LTD
Holding
48,100,000
41,500,000
37,600,052
35,000,000
33,500,000
30,000,000
26,000,000
25,000,000
18,800,000
15,933,639
15,500,000
15,000,000
14,000,000
12,608,171
12,500,000
12,000,000
10,014,285
10,000,000
10,000,000
10,000,000
10,000,000
9,872,760
9,000,001
% IC
5.05%
4.35%
3.94%
3.67%
3.51%
3.15%
2.73%
2.62%
1.97%
1.67%
1.63%
1.57%
1.47%
1.32%
1.31%
1.26%
1.05%
1.05%
1.05%
1.05%
1.05%
1.04%
0.94%
Total
461,928,908
48.46%
Unquoted Equity Securities
Class
Options exercisable at $0.005 on or before
30/11/2023
Performance Rights
Number of
securities
35,000,000
25,000,000
Number
of
holders
Holders with
more than 20%
3
2
Sierra Whiskey Pty Ltd
Azalea Family Holdings Pty Ltd (50%)
Peter Smith (50%)
Renegade Exploration Annual Report for the year ended 30 June 2023 77