Renegade Exploration Annual Report for the year ended 30 June 2023
0
Annual Report
For the year ended 30 June 2024
Renegade Exploration Limited
ABN 92 114 187 978
ASX: RNX
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copper.
Renegade Exploration Limited
ABN: 92 114 187 978
Annual Report for the year ended 30 June 2024
Contents
02
Corporate
Directory
03
Chairman's Letter
04
Review of
Operations
16
Corporate
17
Material
Business Risk
18
Tenement
Position
19
Directors’
Report
25
Remuneration
Report
32
Cautionary
Statements
33
Corporate
Governance
Statement
38
Financial Report
39
Consolidated
Statement of
Profit or Loss
and Other
Comprehensive
Income
40
Consolidated
Statement of
Financial
Position
41
Consolidated
Statement of
Changes in
Equity
42
Consolidated
Statement of
Cash Flows
43
Notes to the
Consolidated
Financial
Statements
84
Consolidated
entity disclosure
statement
85
Directors’
Declaration
86
Auditor’s
Independence
Declaration
87
Independent
Auditor’s Report
92
Shareholder
Information
1
Renegade Exploration Limited
ABN: 92 114 187 978
Annual Report for the year ended 30 June 2024
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
Share Register
Mr Robert Kirtlan (Chairman)
Automic Group
Mr Mark Wallace (Non-Executive Director)
Level 5, 191 St. Georges Terrace
Mr Mark Connelly (Non-Executive Director)
Perth WA 6000
Telephone: (02) 9698 5414
Company Secretary
Mr. Graeme Smith
Stock Exchange Listing
Renegade Exploration Limited shares
Registered Office and Principal Place of Business
are listed on the Australian Securities
Unit 13, 6 – 10 Duoro Street
Exchange, the home branch being Perth
West Perth WA 6005
ASX Code: RNX
Australia
Telephone: 1300 525 118
Auditors
Stantons International Audit and Consulting Pty Ltd
Level 2, 40 Kings Park Road
Operational Offices
West Perth WA 6005
Level 7, 333 Adelaide Street
Brisbane Queensland 4000
Solicitors
Corrs Chambers Westgarth
73 Seymour Street
Level 6, Brookfield Place Tower 2
Cloncurry Queensland 4824
123 St Georges Terrace
Perth WA 6000
2
Renegade Exploration Limited
ABN: 92 114 187 978
Annual Report for the year ended 30 June 2024
Chairman's Letter
The 2024 financial year has seen more advancement in the Company’s development of its principal target, the
Cloncurry Project. The Company is earning back into this Project by way of diluting the other partner, Glencore
plc. At 30 June 2024 the Company’s interest was 31% from its initial interest of 23% in January 2023.
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.
The focus has been on the Cloncurry Project due to the large amount of previous work completed and the
geological setting which sees it surrounded by world class mines and also having been the subject of mining
itself. Renegade is firmly of the belief that more ore bodies will be found in this area and during the year
announced an inferred maiden resource at Mongoose of 3.1Mt @ 0.55% copper and .07g/t gold. Substantial
geophysical work on historic and new data to was completed to develop a large target named Mongoose Deeps
which was drilled in the latter of the financial year.
The resource was completed after the two drill programs in the first half of calendar 2023 and we believe it has
potential value as a development opportunity as the Company continues to explore this area and other parties
are looking to commence operations nearby.
The Mongoose Deeps hole was part funded by Queensland Department of Resources through its Collaborative
Exploration Initiative (CEI) scheme. Without this it would have been difficult to fund the 1,600m deep hole. The
hole was successful in defining an Ernest Henry style iron oxide copper gold unit (IOCG) with some large
breccia style intercepts. Of particular interest is the depth the major intercept, approximately 300m in length,
was discovered. Early expectations were to hit the bigger target zones from approximately 1,000m and in fact
the 300m zone was hit at approximately 300m or approximately 250m true depth, a very welcome surprise as
being shallower may have implications for any future potential breccias discovered and their commercialisation.
This has changed the Company’s thinking and the plan for FY25 is to do more field work, a high-definition drone
magnetic survey and then utilise RC drilling to test targets down to 500-600m. At the time of writing, this work is
well underway.
Given the focus at the Cloncurry Project work remains limited at the North Isa Project however, future work at
Lady Agnes and Tulloch remains a focus for future activity in the current financial year.
Funding was provided by a capital raising of $2.3m in April 2024.
Yours faithfully
Robert Kirtlan
Chairman, Renegade Exploration Limited
3
Renegade Exploration Limited
ABN: 92 114 187 978
Annual Report for the year ended 30 June 2024
4
Renegade Exploration Limited
ABN: 92 114 187 978
Annual Report for the year ended 30 June 2024
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 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.
5
Renegade Exploration Limited
ABN: 92 114 187 978
Annual Report for the year ended 30 June 2024
Cloncurry Project (EPM 8588)
Copper | Gold | Cobalt
Renegade has a 31% 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 in particular the Mongoose project. 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 and Deposit1
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 20232. The program has been successful in expanding the supergene oxide zone and discovering a
high-grade sulphide zone. Renegade announced an inferred resource on 12 December 2023.
3.1Mt @ 0.55% Cu and 0.07g/t Au utilising a 0.25% cut off
Mongoose Deposit, showing nearby open pit mines and resources.
1 See ASX Release dated 12 December 2023; Maiden Mongoose Cu-Au Mineral Resource Estimate.
2 See ASX Release dated 8 May 2023; Up to 25% Cu confirms Mongoose high grade copper sulphide.
See ASX Release dated 4 July 2023; High grade copper zones continue at Mongoose.
6
Renegade Exploration Limited
ABN: 92 114 187 978
Annual Report for the year ended 30 June 2024
Mongoose Deeps Prospect
Substantial geophysical work was done on historical regional gravity and magnetics and followed up with a
close spaced gravity program to provide better targeting for a planned deep hole into the magnetic anomaly
identified3. The anomaly is to the north of the Mongoose Deposit and has been named “Mongoose Deeps”. In
early July 2024, the company announced it had discovered a large Iron Oxide Copper Gold (IOCG) breccia
system at Mongoose Deeps similar in characteristics to the nearby Ernest Henry Mine, after its maiden drill hole
reached a target depth of 1,612m4.
The project was the recipient of the Queensland Department of Resources Collaborative Exploration Incentive
and the Company is anticipating an amount of $300,000 in the ensuing financial year ending 30 June 2025 to
facilitate drilling the hole.
Similarities to Ernest Henry include very-high magnetite shear zones, followed by crackle breccia with bird’s
wing textures, massive pyrite zones, monomict/polymictic brecciation with magnetite and sulphides (pyrite-
chalcopyrite), and red-rock alteration.
At 330m down hole a 300m long magnetic breccia zone was encountered which is significantly shallower than
the initial geophysical modelling suggested. A drone high-definition magnetic survey will be completed in August
to define new targets and enhance current zones of interest. This is a particularly positive development as
future exploration can employ cheaper RC drilling to test new targets.
In general, the hole encountered numerous brecciated and magnetic zones finishing in altered rock containing
veins of sulphides (pyrite-chalcopyrite) and detailed in the 2 July 2024 ASX Release; Ernest Henry style zone
discovered at Mongoose Deeps.
Approximately 400m of core was cut for copper, gold and cobalt plus multi element assaying.
Drilling at the Mongoose Deeps Prospect, Cloncurry Project, in June 2024.
3 See ASX Release dated 11 April 2024; Stunning Mongoose Deeps target nets CEI grant.
4 See ASX Release dated 2 July 2024; Ernest Henry style IOCG zone discovered at Mongoose Deeps.
7
Renegade Exploration Limited
ABN: 92 114 187 978
Annual Report for the year ended 30 June 2024
Plan view showing the very high magnetic anomaly and surrounding copper deposits & mines.
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 3,988m of reverse circulation (RC) and diamond drilling over 21
drill holes during 2013/20145.
5 See ASX Release dated 16 January 2023; Renegade assumes control of Mongoose Project.
8
Renegade Exploration Limited
ABN: 92 114 187 978
Annual Report for the year ended 30 June 2024
Mongoose project, showing nearby open pit mines and deposits, Mongoose Deposit and the Mongoose Deeps Prospect.
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. 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 Prospect5.1
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 carried out a small RC drilling program of 1,020m and encountered close to surface copper oxide
mineralisation including:
18m @ 0.35% Cu, 194ppm Co (RGL001, from surface)
16m @ 0.43% Cu, 175ppm Co (RGL004, from 4m)
10m @ 0.20% Cu, 116ppm Co (RGL008, from 8m)
With the development of the Mongoose Deeps target Company attention has and remains focused on the
Mongoose area.
5.1See ASX Release dated 17 January 2024: Copper oxide zone discovery and IP anomalies detected
9
Renegade Exploration Limited
ABN: 92 114 187 978
Annual Report for the year ended 30 June 2024
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.
Mt Glorious Prospect, showing historic pits, soil samples and rock chips, and recent drilling.
10
Renegade Exploration Limited
ABN: 92 114 187 978
Annual Report for the year ended 30 June 2024
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 ("MIM", 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).
Work has been managed by MIM and has consisted of desk top review for the 2024 financial year.
Renegade carried out some field work at the Tommy Creek prospect in the latter part of 2023 before the wet
season set in. Tommy creek is prospective for graphite, rare earths, uranium and copper.
11
Renegade Exploration Limited
ABN: 92 114 187 978
Annual Report for the year ended 30 June 2024
Tommy Creek has been identified as a potential target for graphite, REE, uranium and copper6. Renegade
carried out a field program and reported the following results:
Significant graphite rich zones identified at Tommy Creek prospect.
Over 3km2 of graphitic shist mapped, with high-grade rock samples returning:
24.7% Total Graphitic Carbon (TGC), 15.2% TGC, 14.3% TGC
Historical diamond drilling at Tommy Creek intercepted:
211m @ 11.1% TGC from 24m including,
23m @21.2% TGC from 120m
First pass reconnaissance of the Beacon U-REE prospect discovered:
0.12% TREO and 303ppm U (RBCRS003)
0.21% TREO and 142ppm U (RBCRS001)
Review of the Boundary REE prospect identified:
2.03% TREO (EX102432)
0.50% TREO (EX102434)
Renegade approached the CJV operator with a view to excising the permit(s) in question and doing an earn
back similar to the Cloncurry Project (EPM8588) with no success the time of writing.
Location of EPM 12561 – Carpentaria Joint Venture, showing Tommy Creek Graphite prospect.
6See ASX Release dated 23 January 2024; Graphite, REE and uranium prospects within CJV.
12
Renegade Exploration Limited
ABN: 92 114 187 978
Annual Report for the year ended 30 June 2024
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.
Planned future programs include soil sampling, mapping and geophysics at the Tulloch Prospect with potential
follow up drilling at Lady Agnes.
13
Renegade Exploration Limited
ABN: 92 114 187 978
Annual Report for the year ended 30 June 2024
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. The Company awaits the grant of
one further permit application which was applied for in the previous financial year. Upon receipt of final permit
grants Renegade intends to do a major review of previous data with a view to formulating field exploration
programs.
14
Renegade Exploration Limited
ABN: 92 114 187 978
Annual Report for the year ended 30 June 2024
Yukon Base Metal Project
Zinc
The Company owns an unexploited zinc deposit in the Yukon territory, Canada. Current
measured, indicated and inferred resource for the project is:
12.6Mt @ 5.3% zinc and 0.9% lead @ a lower cut off of 2% zinc and 1,00m RL applied6
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 SPA was due for completion on 30
November 2023 and ultimately the SPA was terminated on 18 February 2024 with Scharfe owing $1 million to
close the transaction. Scharfe failed to comply with the terms of the option agreement and the Company
terminated the agreement on 18 February 2024. Scharfe forfeited the initial payment of $750,000 received, and
the Company recognised this amount as other income during the year ended 30 June 2024 (Refer to Note 5
and 12).
Renegade continues to negotiate a potential sale to other parties.
6See ASX Release dated 2 March 2018; Yukon Base Metal Project – Resource Estimate
15
Renegade Exploration Limited
ABN: 92 114 187 978
Annual Report for the year ended 30 June 2024
Corporate
The Company had 1,280.1m ordinary shares on issue and the cash and cash equivalent of $1.188m at bank as
of 30 June 2024.
On 20 July 2023 the Company obtained a loan facility of $700,000 from Outland Investment which was extended to
$1million on 06 February 2024. Total amount withdrawn from facility during the year is $830,000 out of which $500,000 is
paid in cash and $330,000 is settled against issuance of shares of 33m at share price of $0.01 on 18 June 2024.
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 base metals, gold and
new age minerals.
16
Renegade Exploration Limited
ABN: 92 114 187 978
Annual Report for the year ended 30 June 2024
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 require 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 fluctuates 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.
17
Renegade Exploration Limited
ABN: 92 114 187 978
Annual Report for the year ended 30 June 2024
Tenement Position
Mining Claims / Tenements held at 30 June 2024:
Australian
Projects
Permit
Number
Permit Type
Type of Interest
Interest at Start
of Quarter
Interest at End
of Quarter
Carpentaria
EPM8586
Exploration Licence
Direct
23.03%
23.03%
JVA (QLD)
EPM8588
Exploration Licence
Direct
28.72%
31.17%
EPM12180
Exploration Licence
Direct
23.03%
23.03%
EPM12561
Exploration Licence
Direct
23.03%
23.03%
EPM12597
Exploration Licence
Direct
23.03%
23.03%
Australian
Projects
Permit
Number
Permit Type
Type of Interest
Interest at Start
of Quarter
Interest at End
of Quarter
Cloncurry, QLD EPM28972
Exploration Licence (application)
Direct
100%
100%
EPM27508
Exploration Licence
Direct
75%
75%
EPM28680
Exploration Licence
Direct
100%
100%
Aramac, QLD
EPM28681
Exploration Licence
Direct
100%
100%
EPM28682
Exploration Licence
Direct
100%
100%
EPM28683
Exploration Licence
Direct
100%
100%
EPM28852
Exploration Licence (application)
Direct
100%
100%
Canadian
Projects
Claim Name
Claim Numbers
Type of Interest
Interest at Start
of Quarter
Interest at End
of Quarter
A
1-8, 57-104
Claim owner
90%
90%
AMB
1-112, 115-116, 123-150
Claim owner
90%
90%
AMBfr
117-122, 151-162
Claim owner
90%
90%
Andrew
1-Oct
Claim owner
90%
90%
Atlas
1-Jun
Claim owner
90%
90%
B
53, 55, 57, 59, 61, 63, 65-74, 79-100, 105-126
Claim owner
90%
90%
Yukon Base
B
127-194
Claim owner
100%
100%
Metal Project
Bridge
1-8, 11-16, 19-32
Claim owner
90%
90%
Clear
Jan-25
Claim owner
100%
100%
Dasha
1-Jun
Claim owner
90%
90%
Data
1-320
Claim owner
100%
100%
Link
1-231
Claim owner
100%
100%
Myschka
1-17, 19-96
Claim owner
90%
90%
Ozzie
Jan-32
Claim owner
90%
90%
Riddell
Jan-80
Claim owner
100%
100%
Scott
Jan-36
Claim owner
90%
90%
Shack
1-May
Claim owner
100%
100%
Sophia
1-Apr
Claim owner
90%
90%
TA
1-332
Claim owner
100%
100%
18
Renegade Exploration Limited
ABN: 92 114 187 978
Annual Report for the year ended 30 June 2024
19
Renegade Exploration Limited
ABN: 92 114 187 978
Annual Report for the year ended 30 June 2024
The Directors present their report for Renegade Exploration Limited (“Renegade” or “the Company”) and its
subsidiaries (“the Group”) for the year ended 30 June 2024.
INFORMATION ON DIRECTORS
The names, qualifications and experience of each person who has been a director during the year and to the date of this
report are:
Name
Mr Robert Kirtlan
Title
Chairman
Experience
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.
Other current directorships in
listed entities
None
Other directorships in listed
entities held in the previous
three years
In the last three years Mr Kirtlan was a Director of Currie Rose Resources Inc (resigned
15 September 2022).
Name
Mr Mark Connelly
Title
Non-Executive Director
Experience
Mark Connelly has a proven track record in the mining industry with over thirty years’
experience and is well credentialed 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.
Other current directorships in
listed entities
Mr Connelly is a Director of Astral Resources NL, Tesoro Gold Ltd, Calidus Resources
Limited, Nickel Search Limited, Omnia Metals Limited, BeMetals Corp Inc, Warriedar
Resources Limited, and Alto Metals Limited.
Other directorships in listed
entities held in the previous
three years
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).
Name
Mr Mark Wallace
Title
Non-Executive Director
Experience
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.
Other current directorships in
listed entities
Mr Wallace is Managing Director of Gold 50 Limited (ASX:G50)
Other directorships in listed
entities held in the previous
three years
None
20
Renegade Exploration Limited
ABN: 92 114 187 978
Annual Report for the year ended 30 June 2024
INFORMATION ON DIRECTORS
Directors have been in office since the start of the financial year to the date of this report unless otherwise stated.
COMPANY SECRETARY
Mr. Graeme Smith
Mr Smith is the principal of Wembley Corporate Services Pty Ltd which provides corporate secretarial, Chief Financial Officer
and governance services. Mr Smith has over 30 years of experience in company secretarial duties.
INTERESTS IN THE SECURITIES OF THE COMPANY
As at the date of this report, the interests of the Directors in the securities of the Company were:
Director
Ordinary
shares
Options over
ordinary shares
Performance
rights
Mr Robert Kirtlan
55,014,285
36,666,666
-
Mr Mark Wallace
49,600,000
16,000,000
-
Mr Mark Connelly
7,383,700
6,255,800
10,000,000
PRINCIPAL ACTIVITIES AND SIGNIFICANT CHANGES IN NATURE OF ACTIVITIES
Principal activities
The principal activities of the Group during the financial year were mineral exploration. There have been no changes in the
principal activities from prior years. During the previous years, the Group entered into a Joint Venture at the North Isa Project
in Queensland, Australia and sold its Yandal East Project.
A brief summary of these transactions is listed below.
Yukon Base Metal Project, Canada
Renegade terminated the agreement with the Scharfe Group in February 2024 after its failure to pay the outstanding
amount of $1m due for settlement on 30 November 2023. The deposit paid by Scharfe Group was forfeited and has been
recorded as other income (refer to Note 5).
The Company continues to progress negotiations with other parties.
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.
Some of this information has been reported to the Australian Stock Exchange (ASX) through 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 20238.
8See ASX Release dated 10 January 2023; Renegade achieves 75% interest in North Isa Project.
21
Renegade Exploration Limited
ABN: 92 114 187 978
Annual Report for the year ended 30 June 2024
PRINCIPAL ACTIVITIES AND SIGNIFICANT CHANGES IN NATURE OF ACTIVITIES
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 EPM8588 to 31.17% by way of the Earn Back clause in the CJV. Renegade is the operator
and sole funder of EPM8588, now called the Cloncurry Project9.
Significant change in nature of activities
Other than as disclosed elsewhere within this report, there were no significant changes in the nature of the Group's principal
activities during the financial year ended 30 June 2024.
CORPORATE STRUCTURE
Renegade Exploration Limited is a company limited by shares that is incorporated and domiciled in Australia
OPERATING RESULTS AND REVIEW OF OPERATIONS FOR THE YEAR
Operating results
The consolidated loss of the Group amounted to $ (1,140,926), after providing for income tax. This represented a 26%
decrease on the results reported for the year ended 30 June 2023. The significant improvement was largely from the other
income of $755,736. This includes the recognition of $750,000 as income following the termination of sale an purchase
agreement with Scharfe for the sale of the Yukon project.
Review of operations
A review of the operations of the Group during the financial year are outlined in Review of Operations Report preceding this
Directors' report.
Financial review
The net assets of the Group have increased by $ 2,506,924 from 30 June 2023 to $ 5,338,044 at 30 June 2024. This
increase is largely due to following factors:
Proceeds of $2,450,000 from issue of ordinary share;
proceeds of $92,500 from disposal of investment in listed equity; and
obtained loans and borrowings amounting to $830,000.
SIGNIFICANT CHANGES IN STATE OF AFFAIRS
Other than as disclosed elsewhere within this report, there have been no significant changes in the state of affairs of entities
in the Group during the year ended 30 June 2024.
9Refer ASX Release dated 16 January 2023; Renegade assumes control of Mongoose Project.
22
Renegade Exploration Limited
ABN: 92 114 187 978
Annual Report for the year ended 30 June 2024
EMPLOYEES
The Group has one full time employee at 30 June 2024 (2023: 1 employee).
DIVIDENDS PAID OR RECOMMENDED
No dividend was paid or declared by the Company in the year and up to the date of this report.
SIGNIFICANT EVENTS AFTER THE REPORTING DATE
No matters or circumstances have arisen since the end of the financial year which significantly affected or could significantly
affect the operations of the Group, the results of those operations or the state of affairs of the Group in future financial years.
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 ISSUES
The Group's operations are not regulated by any significant environmental regulations under a law of the Commonwealth or
of a state or territory of Australia.
The Group carries out operations that are subject to environmental regulations under both Federal, Territorial and Provincial
legislation in Canada and Australia. The Group has formal procedures in place to ensure regulations are adhered to. The
Group is not aware of any breaches in relation to environmental matters
SHARE OPTIONS
At the date of this report, there were 294,255,808 unlisted options over ordinary shares. The details of the options of
Renegade Exploration Limited are as follows:
Date of Expiry
Exercise Price
Number under Option
30 June 2025
$0.015
92,127,924
30 June 2026
$0.025
92,127,924
28 June 2027
$0.015
40,000,000
30 June 2027
$0.025
70,000,000
The option holders do not have any rights to participate in any issues of shares or other interests in the Company or any
other entity.
23
Renegade Exploration Limited
ABN: 92 114 187 978
Annual Report for the year ended 30 June 2024
PERFORMANCE RIGHT
As at the date of this report, there were 35,000,000 unlisted performance rights over ordinary shares. The details of the
performance rights at the reporting date are as follows.
Vesting date
Expiry date
Number of unlisted
performance rights
14 February 2024
2 December 2025
2,000,000
14 February 2025
2 December 2025
8,000,000
Refer to Note 24
10 January 2028
25,000,000
15,000,000 performance rights were exercised during the financial year.
No holder has any right under the performance rights to participate in any other share issue of the Company or any other
entity.
DIRECTORS’ MEETINGS
During the financial year, 10 board and informal meetings were held and attended by each director during the year were as
follows:
Name
Number of meetings eligible
to attend/ circular resolutions
Number of meetings
attended/ circular resolutions
Mr Robert Kirtlan
10
10
Mr Mark Connelly
10
10
Mr Mark Wallace
10
10
PROCEEDINGS ON BEHALF OF THE COMPANY AND/OR GROUP
No person has applied for leave of court to bring proceedings on behalf of the Company or its controlled entities or intervene
in any proceedings to which the Company or its controlled entities are a party for the purpose of taking responsibility on
behalf of the Company or its controlled entities for all or any part of those proceedings. The Company or its controlled
entities were not a party to any such proceedings during the 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.
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
https://renegadeexploration.com/.
24
Renegade Exploration Limited
ABN: 92 114 187 978
Annual Report for the year ended 30 June 2024
AUDITOR’S INDEPENDENCE AND NON-AUDIT SERVICES
The auditor's independence declaration in accordance with section 307C of the Corporations Act 2001 for the year ended 30
June 2024 has been received and can be found on page 86 of the financial report.
There were no non-audit services provided by the Company’s auditor during the year ended 30 June 2024.
ASIC corporations instrument 2016/191 rounding of amounts
The Company is an entity to which ASIC Corporations (Rounding in Financial/Directors' Report) Instrument 2016/191 applies
and, accordingly, amounts in the financial statements and directors' report have been rounded to the nearest million dollars
where indicated.
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,
KMP are defined as those persons having authority and responsibility for planning, directing and controlling the major
activities of the Company and the Group, directly or indirectly, including any director (whether executive or otherwise) of the
Parent entity.
Details of Key Management Personnel
Mr Robert Kirtlan
Chairman
Mr Mark Wallace
Non-Executive Director
Mr Mark Connelly
Non-Executive Director
Remuneration policy
The remuneration policy of Renegade Exploration Limited has been designed to align key management personnel (KMP)
objectives with shareholder and business objectives. The Board is responsible for determining and reviewing compensation
arrangements for the Directors and management. The Board assesses the appropriateness of the nature and amount of
emoluments of such officers on a periodic basis by reference to relevant employment market conditions with the overall
objective of ensuring maximum stakeholder benefit from the retention of a high quality board and executive team. The
Company does not link the nature and amount of the emoluments of such officers to the Group’s financial or operational
performance. The lack of a performance link at this time is not considered to have a negative impact on retaining and
motivating Directors.
As part of its Corporate Governance Policies and Procedures, the Board has adopted a formal Remuneration Committee
Charter. Due to the current size of the Company and number of Directors, the Board has elected not to create a separate
Remuneration Committee but has instead decided to undertake the function of the Committee as a full Board under the
guidance of the formal charter. The Company has no policy on executives and directors entering into contracts to hedge their
exposure to options or shares granted as part of their remuneration package.
The rewards for Directors’ have no set or pre-determined performance conditions or key performance indicators as part of
their remuneration due to the current nature of the business operations. The Board determines appropriate levels of
performance rewards as and when they consider rewards are warranted. No remuneration consultants were used during the
year.
The following table shows the performance of the Group as measured by earnings/(loss) per share for the last five years, as
well as the share prices at the end of the respective financial years.
2024
2023
2022
2021
2020
Profit/(loss) per share (cents)
(0.11)
(0.17)
0.09
(0.10)
(0.12)
Share Price at Year-end (cents)
1.60
1.20
0.60
0.60
0.50
25
Renegade Exploration Limited
ABN: 92 114 187 978
Annual Report for the year ended 30 June 2024
REMUNERATION REPORT (AUDITED)
Employment details of members of key management personnel
The following table of benefits and payment details, in respect to the financial year, the components of remuneration for each member of the key management personnel of the Group.
Short term
Post
employment
share based payments
30 June 2024
Base salary
$
Directors'
fees
$
Consulting
fees
$
Other
benefits
(Note1)
$
Superannuation
$
Options
(Note 2)
Performance
rights
(Note 3)
$
Total
$
Directors
Mr Robert Kirtlan
-
-
291,450
100,000
-
331,930
-
723,380
Mr Mark Wallace
-
-
84,000
15,000
-
165,965
-
264,965
Mr Mark Connelly
-
48,000
-
18,837
-
55,322
10,932
133,091
-
48,000
375,450
133,837
-
553,217
10,932
1,121,436
Note 1
On 18 June 2024, Renegade issued securities to its directors in lieu of outstanding Directors’ fees totaling $133,837. The details are as follows:
a)
Mr Robert Kirtlan: Up to 10,000,000 shares, 3,333,333 Placement Options A, and 3,333,333 Placement Options B
b)
Mr Mark Wallace: Up to 1,500,000 shares, 500,000 Placement Options A, and 500,000 Placement Options B
c)
Mr Mark Connelly: Up to 1,883,700 shares, 627,900 Placement Options A, and 627,900 Placement Options B
All shares were issued at a deemed price of $0.01 per share. The terms and conditions of the options are as follows:
Placement Option A: A free-attaching option granted on the basis of 1 option for every 3 Placement Shares subscribed. These options are exercisable on or before 30 June 2025 at an
exercise price of $0.015 per option.
Placement Option B: A bonus option attached to each Placement Option A, exercisable on or before 30 June 2026 at an exercise price of $0.025 per option. Vesting is contingent upon
the exercise of the corresponding Placement Option A.
Note 2
A total of 50 million options were issued to the directors as follows:
a)
30,000,000 options to Robert Kirtlan (or his nominee)
b)
15,000,000 options to Mark Wallace (or his nominee)
c)
5,000,000 options to Mark Connelly (or his nominee)
The valuation details for the 50 million options are provided on page 27 and page 28.
26
Renegade Exploration Limited
ABN: 92 114 187 978
Annual Report for the year ended 30 June 2024
REMUNERATION REPORT (AUDITED)
Employment details of members of key management personnel
Note 3
The terms and conditions for the performance rights are as follows:
1.
Issued in three tranches to Mark Connelly: These performance rights were approved at the annual general meeting held on 29 September 2022.
2.
It related to tranche 4,5 and 6 having expiry of three years:
Tranche 4: 2 million shares will vest upon achieving a VWAP hurdle of $0.01
Tranche 5: 3 million shares will vest upon achieving a VWAP hurdle of $0.02.
Tranche 6: 5 million shares will vest upon achieving a VWAP hurdle of $0.03.
All performance rights expire after three years if not exercised.
short term
post
employment
share based payments
30 June 2023
Base salary
$
Directors'
fees
$
Consulting
fees
$
Other
benefits
$
Superannuation
$
Options
Performance
rights
$
Total
$
Directors
Mr Robert Kirtlan
-
-
296,000
-
-
-
-
296,000
Mr Mark Wallace
-
-
84,000
-
-
-
-
84,000
Mr Mark Connelly
-
48,000
-
-
-
-
18,438
66,438
-
48,000
380,000
-
-
-
18,438
446,438
Description of Share options/performance rights granted as remuneration
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 and previous reporting period of KMP are as follows:
30 June 2024
Type
Grant date
Number of
options/rights
(Note 1)
Expiry/last
exercise
date
Fair value at
grant date
$
Exercise
price
$
Expected
share price
volatility
%
Risk-free
interest rate
%
Total value
granted
$
Vested
% vested
in period
Mr Robert Kirtlan
Options
18/06/2024
30,000,000 30/06/2027
0.011
0.025
128.40%
3.49%
331,930
30,000,000
100%
27
Renegade Exploration Limited
ABN: 92 114 187 978
Annual Report for the year ended 30 June 2024
REMUNERATION REPORT (AUDITED)
Description of Share options/performance rights granted as remuneration
30 June 2024
Type
Grant date
Number of
options/rights
(Note 1)
Expiry/last
exercise
date
Fair value at
grant date
$
Exercise
price
$
Expected
share price
volatility
%
Risk-free
interest rate
%
Total value
granted
$
Vested
% vested
in period
Mr Mark Wallace
Options
18/06/2024
15,000,000 30/06/2027
0.011
0.025
128.40%
3.49%
165,965
15,000,000
100%
Mr Mark Connelly
Options
18/06/2024
5,000,000 30/06/2027
0.011
0.025
128.40%
3.49%
55,322
5,000,000
100%
Mr Mark Connelly
Performance rights 29/11/2022
2,000,000 2/12/2025
0.006
-
-
-
6,000
1,000,000
50%
Mr Mark Connelly
Performance rights 29/11/2022
8,000,000 2/12/2025
0.006
-
-
-
24,000
2,000,000
25%
There were no alterations to the terms and conditions of options granted as remuneration since their grant date.
30 million options were exercised and 5 million options were expired during the year ended 30 June 2024 (2023: 35,000,000). Refer to Note 24.
Part of Mr Connelly's remuneration is represented by 15 million Performance Rights granted under the employee share option plan. Refer to Note 24. The Performance Rights were
approved by shareholders at the November 2022 Annual General Meeting.
Note 1
This includes options and performance rights related key management personnel.
50 million options issued to directors:
Each option entitles the holder to subscribe for one share upon exercise, with an exercise price of $0.025, unless the cashless exercise option is utilised. These options will vest
immediately and expire on 30 June 2027. Options are issued to directors as set out below: For valuation details refer to Note 24.
Holder
Number
Fair value at grant
date
$
Mr Robert Kirtlan
30,000,000
331,930
Mr Mark Wallace
15,000,000
165,965
Mr Mark Connelly
5,000,000
55,322
50,000,000
553,217
The valuation of the options is based on the Black-Scholes model, using the inputs outlined in the table above.
Performance rights were issued to Mr Mark Connelly. Terms and conditions are set out below:
28
Renegade Exploration Limited
ABN: 92 114 187 978
Annual Report for the year ended 30 June 2024
REMUNERATION REPORT (AUDITED)
Description of Share options/performance rights granted as remuneration
Additional tranches.
Tranche 4: 2 million shares will vest upon achieving a VWAP hurdle of $0.01.
Tranche 5: 3 million shares will vest upon achieving a VWAP hurdle of $0.02.
Tranche 6: 5 million shares will vest upon achieving a VWAP hurdle of $0.03.
All performance rights will expire three years after issuance if not exercised. For valuation details refer to Note 24.
Key management personnel shareholdings
The number of ordinary shares in Renegade Exploration Limited held by each key management person of the Group
including their personally related parties during the financial year is as follows:
30 June 2024
Balance at
beginning of
year
Granted as
compensation
Exercised
during the year
Other changes
during the year
Balance at
end of year
Directors
Mr Robert Kirtlan
45,014,285
10,000,000
-
-
55,014,285
Mr Mark Wallace
48,100,000
1,500,000
-
-
49,600,000
Mr Mark Connelly
-
1,883,700
-
5,500,000
7,383,700
93,114,285
13,383,700
-
5,500,000 111,997,985
30 June 2023
Balance at
beginning of year
Granted as
compensation
Exercised
during the year
Other changes
during the year
Balance at
end of year
Directors
Mr Robert Kirtlan
13,014,285
-
-
32,000,000
45,014,285
Mr Mark Wallace
48,100,000
-
-
-
48,100,000
Mr Mark Connelly
-
-
-
-
-
61,114,285
-
-
32,000,000
93,114,285
Key management personnel unlisted security holdings
30 June 2024
Type
Balance at
beginning
of year
Granted as
remuneration
(Note 1)
Exercised
Other
changes
Balance at
the end of
year
% vested
Directors
Mr Robert Kirtlan
Options
-
36,666,666
-
-
36,666,666
%
100
Mr Mark Wallace
Options
25,000,000
16,000,000 (25,000,000)
-
16,000,000
%
100
Mr Mark Connelly
Options
-
6,255,800
-
-
6,255,800
%
100
Mr Mark Connelly
Performance
rights
15,000,000
-
(5,000,000)
-
10,000,000
%
100
40,000,000
58,922,466 (30,000,000)
-
68,922,466
100 %
Note 1
The Company issued shares, placement options A and B to the directors in lieu of outstanding directors fees. Details of the
shares, placement options A and placement options B are set out below.
29
Renegade Exploration Limited
ABN: 92 114 187 978
Annual Report for the year ended 30 June 2024
REMUNERATION REPORT (AUDITED)
Key management personnel unlisted security holdings
Holder
Shares
Class
Free attaching
Options issued
Exercise
Price
$
Expiry
Mr Robert Kirtlan
10,000,000 Placement Options A
3,333,333
0.02
30/06/2025
-
Placement Options B
3,333,333
0.03
30/06/2026
Mr Mark Wallace
1,500,000 Placement Options A
500,000
0.02
30/06/2025
-
Placement Options B
500,000
0.03
30/06/2026
Mr Mark Connelly
1,883,700 Placement Options A
627,900
0.02
30/06/2025
-
Placement Options B
627,900
0.03
30/06/2026
13,383,700
8,922,466
Details of the remaining 50 million options issued to directors as below. Also refer to Note 24.
Holder
Number
Fair value at grant
date
$
Mr Robert Kirtlan
30,000,000
331,930
Mr Mark Wallace
15,000,000
165,965
Mr Mark Connelly
5,000,000
55,322
50,000,000
553,217
30 June 2023
Type
Balance at
beginning of
year
Granted as
remuneration
Exercised
Other
changes
Balance at
the end of
year
%
vested
Directors
Mr Robert Kirtlan
Options
30,000,000
-
(30,000,000)
-
-
100%
Mr Mark Wallace
Options
25,000,000
-
-
-
25,000,000
Mr Mark Connelly
Performance
rights
-
15,000,000
-
-
15,000,000
55,000,000
15,000,000
(30,000,000)
-
40,000,000
100%
Service Agreements
On appointment to the Board, all non-executive directors enter into a service agreement with the Company in the form of a
letter of appointment. The letter summarises the Board policies and terms, including remuneration, relevant to the office of
director.
The remuneration and other terms of employment for the Directors set out in formal service agreements as summarised
below.
Executive Directors and Key Management Personnel
Robert Kirtlan is the only executive director.
Romforrd Consulting Pty Ltd a related entity of Mr Kirtlan has entered into a consulting services agreement with the
Company for a period of 12 months. In accordance with the agreement Mr Kirtlan has to provide services for a minimum of
10 days per month at a monthly fee of $10,000 and a daily fee of up to $1,500 for days in excess of 10 days per month. Mr
30
Renegade Exploration Limited
ABN: 92 114 187 978
Annual Report for the year ended 30 June 2024
REMUNERATION REPORT (AUDITED)
Service Agreements
Kirtlan’s advisory business provides services of a corporate nature including legal, accounting and general management
work plus 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)
This director's report, incorporating the remuneration report, is signed in accordance with a resolution of the Board of
Directors.
Robert Kirtlan
Chairman
30 September 2024
31
Renegade Exploration Limited
ABN: 92 114 187 978
Annual Report for the year ended 30 June 2024
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
Release date
Renegade acquires interest in the Carpentaria Joint Venture
17 December 2020
Lady Agnes drilling results
8 August 2022
Renegade achieves 75% interest in North Isa Project
9 January 2023
Renegade assumes control of Mongoose Project
16 January 2023
Up to 25% Cu confirms Mongoose high grade copper sulphide
8 May 2023
Glorious rock chips from Mt Glorious
19 June 2023
Large high-grade copper zones continue at Mongoose
4 July 2023
Renegade locks in funding facility
20 July 2023
Superb Soils at Mt Glorious Prospect
27 July 2023
Maiden Mongoose Cu mineral resources estimate
12 December 2023
Tommy Creek yields graphite, TRO uranium and copper
17 January 2024
Copper oxide zone discovery and IP anomalies detected
18 January 2024
Stunning Mongoose Deeps Target nets $300,000 CEI grant
11 April 2024
Ernest Henry style IOCG zone discovered at Mongoose Deeps
2 July 2024
Mongose gravity target returns 40% Cu at surface
13 August 2024
Drone magnetic survey at Mongoose completed
3 September 2024
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.
32
Renegade Exploration Limited
ABN: 92 114 187 978
Annual Report for the year ended 30 June 2024
Corporate Governance Statement
The Board is committed to achieving and demonstrating the highest standards of corporate governance. The Board
continues to refine and improve the governance framework and practices in place to ensure they meet the interests of
shareholders. The Company complies with the Australian Securities Exchange (ASX) Corporate Governance Council’s
Corporate Governance Principles and Recommendations (the Principles).
Copies of Renegade Exploration Limited's Board and key corporate governance policies or summaries are available in the
Corporate Governance section of the Company's website at www.renegadeexploration.com.
Principle 1: Lay solid foundations for management and oversight
Role of the Board and Management
The Board of Directors is responsible for the corporate governance of the Company. The Board provides strategic guidance
for the Company, and effective oversight of management. The Board guides and monitors the business and affairs of the
Group on behalf of the shareholders by whom they are elected and to whom they are accountable.
The Board has adopted a Charter that details its roles and responsibilities, which is available on our website.
Responsibilities of the Board
The Board is responsible for:
Overseeing the Company, including its control and accountability systems;
Overseeing the integrity of the accounting and corporate systems, including external audit;
Where appropriate, ratifying the appointment and removal of senior executives;
Providing input into and final approval of management’s development of corporate strategy and performance
objectives;
Reviewing, ratifying and monitoring systems of risk management and internal controls, codes of conduct and legal
compliance;
Responsibilities of management
Management are responsible for implementing the strategic objectives of the Company and operating within the risk appetite
set by the Board as well as other aspects of the day-to-day running of the Company.
Role and accountability of the Company Secretary
The Company Secretary is appointed by the Board and is responsible for:
Advising the Board on Governance matters;
Monitoring compliance with Board policies and procedures;
Co-ordinating Board papers;
Accurately recording decisions and discussions from Board meetings; and
Co-ordinating the induction and professional development of Directors.
33
Renegade Exploration Limited
ABN: 92 114 187 978
Annual Report for the year ended 30 June 2024
Corporate Governance Statement
Ongoing training
Principle 2: Structure the Board to add Value
The Board’s policy is that the Board needs to have an appropriate mix of skills, experience, expertise and diversity to be well
equipped to help the Company navigate the range of challenges faced by the Company.
The names, independence status and terms of service of the members of the Board as at the date of this report are set out
in directors report.
Role of the Chair
The Chair of the Board is responsible for leadership of the Board and for the efficient organisation and conduct of the
Board’s functioning.
The Chair facilitates the effective contribution of all directors and promotes constructive and respectful relations between
directors and between Board and management.
Access to information
The Board is provided with the information it needs to discharge its responsibilities effectively and all Directors have
complete access to senior management through the Company Secretary at any time.
In certain circumstances, each Director has the right to seek independent professional advice at the Company’s expense,
within specified limits, or with the prior approval of the Board.
Principle 3: Act ethically and responsibly
Code of conduct
The Board acknowledges and emphasises the importance of all directors and employees maintaining the highest standards
of corporate governance practice and ethical conduct.
A code of conduct has been established requiring directors and employees to:
Act in the best interest of the Company;
Act honestly and with high standards of personal integrity;
Exercise due care and diligence in fulfilling the functions of office;
Avoid conflicts and make full disclosure of any possible conflicts of interest;
Comply with the laws and regulations that apply to the Company and its operations;
Not knowingly participate in any illegal or unethical activity; and
Comply with the share trading policy outlined in the Code of Conduct.
34
Renegade Exploration Limited
ABN: 92 114 187 978
Annual Report for the year ended 30 June 2024
Corporate Governance Statement
Principle 4: Safeguard integrity in corporate reporting
External auditor
The Audit Committee oversees the relationship with the external auditor. In accordance with the Corporations Act 2001, the
lead Audit Partner on the audit is required to rotate at the completion of a 5 year term.
The external auditor attends the AGM and is available to answer your shareholder questions about the conduct of the audit
and the preparation and content of the auditor’s report.
The Board have received from its Chief Financial Officer a declaration that, in their opinion, the financial records of the
Company have been properly maintained and that the financial statements comply with the appropriate accounting standards
and give a true and fair view of the financial position and performance of the Company and that the opinion has been formed
on the basis of a sound system of risk management and internal control which is operating effectively.
Internal control
The Board is responsible for reviewing the Company’s policies on risk oversight and management and satisfying itself that
management has developed and implemented a sound system of risk management and internal control.
The Board has received assurance from the Chief Executive Officer and the Chief Financial Officer that the declaration
provided in accordance with section 295A of the Corporations Act 2001 is founded on a system of risk management and
internal control and that the system is operating effectively in all material respects in relation to financial reporting risks.
Principle 5: Make timely and balanced disclosure
Renegade Exploration Limited has established policies and procedures to ensure timely and balanced disclosures of all
material matters concerning the Company, and to ensure that all investors have equal and timely access to information on
the Company’s financial performance.
These policies and procedures include a comprehensive disclosure policy that includes identification of matters that may
have a material effect on the price on the Company’s securities, quality control procedures over announcements, notifying
them to the ASX, posting relevant information on the Company’s website and issuing media releases.
The policy is available on the Company's website.
The Annual Report includes relevant information about the operations of the Company during the year, key financial
information, changes in the state of affairs and indications of future developments. The Annual Reports for the current year
and for previous years are available under the Investor Relations section of the Company website.
The half year and full year financial results are announced to the ASX and are available to shareholders via the Company
and ASX websites.
All announcements made to the market, and related information (including presentations to investors and information
provided to analysts or the media during briefings) are made available to all shareholders under the investor relations section
of the Company website after they are released to the ASX. All ASX announcements, media releases and financial
information are available on Company website within one day of public release.
Principle 6: Respect the rights of security holders
The Company Secretary has been nominated as the person responsible for communications with the ASX.
All Executive Management have an ongoing obligation to advise the Company Secretary of any material non-public
35
Renegade Exploration Limited
ABN: 92 114 187 978
Annual Report for the year ended 30 June 2024
Corporate Governance Statement
information which may need to be communicated to the market.
The Company has an Investor Relations Program which promotes effective communication with shareholders, encourages
participation at general meetings and encourages communications throughout the year.
The Company engages with its security holders through:
Giving them ready access to information about the Company and its governance via the Company website;
Communicating openly and honestly with them;
Encouraging and facilitating their participation in meetings of security holders; and
Providing an email address on all communication for security holders who wish to contact the Company.
The Company makes all ASX announcements available via its website. In addition, shareholders who are registered receive
email notification of announcements.
The Notice of Annual General Meeting (AGM) will be provided to all shareholders and posted on the Company’s website.
Notices for general meetings and other communications with shareholders are drafted to ensure that they are honest,
accurate and not misleading and that the nature of the business of the meeting is clearly stated and explained where
necessary.
The Board encourages full participation by shareholders at the Annual General Meeting to ensure a high level of Director
accountability to shareholders and shareholder identification with the Company’s strategy and goals.
For shareholders unable to attend, an AGM question form will accompany the Notice of Meeting, giving shareholders the
opportunity to forward questions and comments to the Company or the external auditor prior to the AGM.
Principle 7: Recognise and manage risk
The Board considers identification and management of key risks associated with the business as vital to maximise
shareholder wealth. A yearly assessment of the business' risk profile is undertaken and reviewed by the Board, covering all
aspects of the business from the operational level through to strategic level risks.
The Board is responsible for reviewing the Company’s policies on risk oversight and management and satisfying itself that
management has developed and implemented a sound system of risk management and internal control.
The Board requires management to design and implement the risk management and internal control system to manage the
Company's material business risks and report to it on whether those risks are being managed effectively.
The Board has received a report from management as to the effectiveness of the Company's management of its material
business risks.
A summary of the Company’s risk related policies can be found with other corporate governance policies under the
Corporate Governance section of the Company’s website.
Principle 8: Remunerate fairly and responsibly
The Company’s remuneration policy is designed in such as way that it:
motivates senior executives to pursue the long-term growth and success of the Company and
demonstrates a clear relationship between senior executives’ performance and remuneration.
36
Renegade Exploration Limited
ABN: 92 114 187 978
Annual Report for the year ended 30 June 2024
Corporate Governance Statement
The remuneration policy, which sets the terms and conditions for the key management personnel (KMP) was developed after
seeking professional advice from independent consultants and was approved by the Board.
All executives receive a base salary, superannuation, fringe benefits, performance incentives and retirement benefits. The
Board reviews executive packages annually by reference to Company performance, executive performance, comparable
information from industry sectors and other listed corporations and independent advice. The performance of executives is
measured against criteria agreed half yearly which are based on the forecast growth of the Company’s performance and
shareholder value. The policy is designed to attract the highest calibre executives and reward them for performance which
results in long-term growth in shareholder value.
The Board expects that the remuneration structure implemented will result in the Company being able to attract and retain
the best executives. It will also provide executives with the necessary incentives to work to grow long-term growth in
shareholder value.
37
Renegade Exploration Limited
ABN: 92 114 187 978
Annual Report for the year ended 30 June 2024
38
Renegade Exploration Limited
ABN: 92 114 187 978
Consolidated Statement of Profit or Loss and Other Comprehensive
Income
For the Year Ended 30 June 2024
Note
2024
$
2023
$
Continuing operations
Interest income
4,095
2,679
Other income
5
755,736
4,313
Gain/(loss) on revaluation of financial asset
13
(11,000)
(568,568)
Total Income
5
748,831
(561,576)
Rent and outgoings
(38,679)
(38,909)
Consultant, employees and directors' fees
(358,800)
(403,133)
Accounting fees
(41,400)
(36,900)
Audit and tax fees
(51,318)
(49,954)
Computer and website expenses
(4,293)
(6,526)
Travel and accommodation
(121,457)
(110,924)
Insurance
(49,208)
(42,319)
Legal expenses
(5,050)
(3,490)
Listing and registry fees
(68,339)
(46,276)
Share based payments
(889,900)
(105,542)
Depreciation
(15,915)
(16,817)
Other expenses
6
(228,343)
(108,120)
Loss before income taxes
(1,123,871)
(1,530,486)
Income tax expense
8
-
-
Loss from continuing operations
(1,123,871)
(1,530,486)
Discontinued operations
Loss for the year from discontinued operations after tax
7
(17,055)
(6,754)
Loss for the year
(1,140,926)
(1,537,240)
Other comprehensive income, net of income tax
Items that may be reclassified to profit or loss
Exchange differences on translating foreign controlled entities
19
(23,137)
8,240
Total comprehensive loss for the year
(1,164,063)
(1,529,000)
Earnings per share:
From continuing operations:
Basic earnings per share (cents)
20
(0.11)
(0.17)
Diluted earnings per share (cents)
20
(0.11)
(0.17)
From discontinued operations:
Basic earnings/(loss) per share (cents)
20
(0.0007)
Diluted earnings per share (cents)
20
(0.0007)
The accompanying notes form part of these financial statements.
39
(0.002)
(0.002)
24
Renegade Exploration Limited
ABN: 92 114 187 978
Consolidated Statement of Financial Position
As At 30 June 2024
Note
2024
$
2023
$
ASSETS
CURRENT ASSETS
Cash and cash equivalents
10
1,187,929
76,669
Trade and other receivables
11
167,538
106,347
Other financial assets
13
9,500
113,000
Assets held for sale
12
1,101,094
1,143,150
TOTAL CURRENT ASSETS
2,466,061
1,439,166
NON-CURRENT ASSETS
Property, plant and equipment
14
55,753
60,450
Exploration and evaluation assets
15
3,768,836
2,325,096
TOTAL NON-CURRENT ASSETS
3,824,589
2,385,546
TOTAL ASSETS
6,290,650
3,824,712
LIABILITIES
CURRENT LIABILITIES
Trade and other payables
16
952,606
993,593
TOTAL CURRENT LIABILITIES
952,606
993,593
TOTAL LIABILITIES
952,606
993,593
NET ASSETS
5,338,044
2,831,119
EQUITY
Issued capital
17
47,759,381
45,370,301
Accumulated losses
18
(43,499,956)
(42,534,030)
Reserves
19
1,078,619
(5,152)
TOTAL EQUITY
5,338,044
2,831,119
The accompanying notes form part of these financial statements.
40
Renegade Exploration Limited
ABN: 92 114 187 978
Consolidated Statement of Changes in Equity
For the Year Ended 30 June 2024
2024
Note
Ordinary
Shares
$
Accumulated
losses
$
Foreign
Currency
Translation
Reserve
$
Share based
Payment
Reserves
$
Total
$
Balance at 1 July 2023
17
45,370,301
(42,534,030)
(410,253)
405,101
2,831,119
Loss attributable to members
-
(1,140,926)
-
-
(1,140,926)
Other comprehensive income for the year
-
-
(23,137)
-
(23,137)
Transactions with owners in their
capacity as owners
Shares issued during the year
17(a)
3,006,638
-
-
-
3,006,638
Transaction costs
17(a)
(617,558)
-
-
-
(617,558)
Share based payment transactions
-
-
-
1,281,908
1,281,908
Transfer of FV of Options
exercised/expired(1)
-
175,000
-
(175,000)
-
Balance at 30 June 2024
17
47,759,381
(43,499,956)
(433,390)
1,512,009
5,338,044
2023
Note
Ordinary
Shares
$
Accumulated
losses
$
Foreign
Currency
Translation
Reserve
$
Share based
Payment
Reserves
$
Total
$
Balance at 1 July 2022
44,956,501
(41,171,790)
(418,493)
353,359
3,719,577
Loss attributable to members
-
(1,537,240)
-
-
(1,537,240)
Other comprehensive income for the year
-
-
8,240
-
8,240
Transactions with owners in their
capacity as owners
Shares issued during the year
17(a)
413,800
-
-
-
413,800
Share based payment transactions
-
-
-
226,742
226,742
Transfer of FV of Options
exercised/expired
-
175,000
-
(175,000)
-
Balance at 30 June 2023
17
45,370,301
(42,534,030)
(410,253)
405,101
2,831,119
(i) 30 Million options exercised and 5 million Options expired.
The accompanying notes form part of these financial statements.
41
Renegade Exploration Limited
ABN: 92 114 187 978
Consolidated Statement of Cash Flows
For the Year Ended 30 June 2024
Note
2024
$
2023
$
CASH FLOWS FROM OPERATING ACTIVITIES:
Payments to suppliers and employees
(857,004)
(966,640)
Interest received
4,095
2,679
Other income
-
4,313
Net cash used in operating activities
22
(852,909)
(959,648)
CASH FLOWS FROM INVESTING ACTIVITIES:
Payments for exploration and evaluation
(772,959)
(1,117,152)
Purchase of property, plant and equipment
(11,218)
(77,267)
Cash transferred to assets held for sale
8,584
4,486
Proceeds from sale of financial assets
13
92,500
1,533,432
Net cash (used in)/provided by investing activities
(683,093)
343,499
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issue of shares
17(a)
2,450,000
175,000
Proceeds from the borrowing Outland loan facility
830,000
-
Repayment of other borrowings
(500,000)
-
Payment for share issue costs
(132,731)
-
Net cash provided by financing activities
2,647,269
175,000
Net increase/(decrease) in cash and cash equivalents held
1,111,267
(441,149)
Cash and cash equivalents at beginning of year
76,669
517,861
Effects of exchange rate changes on cash and cash equivalents
(7)
(43)
Cash and cash equivalents at end of financial year
10(a)
1,187,929
76,669
The accompanying notes form part of these financial statements.
42
Renegade Exploration Limited
ABN: 92 114 187 978
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2024
1
Corporate Information
This financial report covers Renegade Exploration Limited ((“Renegade” or “the Company”) and its controlled entities
(collectively "the Group"). Renegade Exploration Limited is a for-profit public Company limited by shares, incorporated
and domiciled in Australia whose shares are publicly traded on the Australian Securities Exchange.
The Company and its controlled entities are principally engaged in mining and exploration activities for the year ended
30 June 2024 as described in Directors' report.
The financial report was authorised for issue by the Directors on 30 September 2024.
2
Basis of Preparation
This financial report is a general purpose financial report that has been prepared in accordance with the Australian
Accounting Standards and other authoritative pronouncements of the Australian Accounting Standards Board and the
requirements of Corporations Act 2001.
(a)
Reporting basis and conventions
These financial statements have been prepared on an accruals basis and are based on historical costs modified,
where applicable, by the measurement at fair value of selected non-current assets, financial assets and financial
liabilities. Material accounting policy information relating to the preparation of these financial statements are
presented below and are consistent with prior reporting periods unless otherwise stated.
(b)
Compliance statement
The financial report complies with Australian Accounting Standards ("AAS") as issued by the Australian
Accounting Standards Board and International Financial Reporting Standards (ÏFRS") as issued by the
International Accounting Standards Board.
3
Material Accounting Policy Information
(a)
Going concern
This financial report has 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 2024, the Group incurred a loss before tax from continuing operation of $1,123,871
(2023: loss $1,530,486) and net cash outflow from operating activities $852,909 (2023: net cash outflow
$959,648) and net cash outflow from investing activities $683,093 (2023: net cash inflow $343,499) respectively.
At 30 June 2024, the Group had net current assets of $1,513,455 (2023: $445,573).
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;
43
Renegade Exploration Limited
ABN: 92 114 187 978
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2024
3
Material Accounting Policy Information
(a)
Going concern
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 Company is currently evaluating the terms of the bid from another potential buyer following the
termination of the Share Purchase Agreement (SPA) with Scharfe to sell the Yukon project due to failure to
comply with the option agreement; 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
report.
The financial report 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.
(b)
New and Amended Accounting Policies adopted by the Group
Following New and Amended Accounting Policies adopted by the Group:
AASB 2021-2: Amendments to Australian Accounting Standards – Disclosure of Accounting Policies and
Definition of Accounting Estimates
The Group adopted AASB 2021-2 which amends AASB 7, AASB 101, AASB 108 and AASB 134 to require
disclosure of ‘material accounting policy information’ rather than significant accounting policies’ in an entity’s
financial statements. It also updates AASB Practice Statement 2 to provide guidance on the application of
the concept of materiality to accounting policy disclosures.
The adoption of the amendment did not have a material impact on the financial report.
AASB 2022-7: Editorial Corrections to Australian Accounting Standards and Repeal of Superseded and
Redundant Standards
AASB 2022-7 makes editorial corrections to various Australian Accounting Standards and AASB Practice
Statement 2. It also formally repeals the superseded and redundant Australian Accounting Standards set out
in Schedules 1 and 2 of these standards.
The adoption of the amendment did not have a material impact on the financial reports.
44
(continued)
Renegade Exploration Limited
ABN: 92 114 187 978
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2024
3
Material Accounting Policy Information
(c)
Basis for consolidation
The consolidated financial report comprises the financial statements of the parent (Renegade Exploration
Limited) and its subsidiaries as at 30 June 2024. Control is achieved when the Group is exposed, or has rights,
to variable returns from its involvement with the investee and has the ability to affect those returns through its
power over the investee. Specifically, the Group controls an investee if, and only if, the Group has:
Power over the investee (i.e., existing rights that give it the current ability to direct the relevant activities of
the investee)
Exposure, or rights, to variable returns from its involvement with the investee
The ability to use its power over the investee to affect its returns
Generally, there is a presumption that a majority of voting rights results in control. To support this presumption
and when the Group has less than a majority of the voting or similar rights of an investee, the Group considers
all relevant facts and circumstances in assessing whether it has power over an investee, including:
The contractual arrangement(s) with the other vote holders of the investee
Rights arising from other contractual arrangements
The Group’s voting rights and potential voting rights
Profit or loss and each component of other comprehensive income (OCI) are attributed to the equity holders of
the parent of the Group and to the non-controlling interests, even if this results in the non-controlling interests
having a deficit balance. When necessary, adjustments are made to the financial statements of subsidiaries to
bring their accounting policies in line with the Group’s accounting policies
All intragroup assets, liabilities, equity, income, expenses and cashflows relating to transactions between entities
in the consolidated entity have been eliminated in full for the purpose of this financial report.
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.
A list of controlled entities is contained in Note 23 to the financial statements.
Deconsolidation of Subsidiary
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.
45
(continued)
Renegade Exploration Limited
ABN: 92 114 187 978
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2024
3
Material Accounting Policy Information
(d)
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
(e)
Fair value measurement
The Group measures financial instruments such as derivatives, and non-financial assets such as investment
properties, at fair value at each balance sheet date.
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly
transaction between market participants at the measurement date. The fair value measurement is based on the
presumption that the transaction to sell the asset or transfer the liability takes place either:
In the principal market for the asset or liability In the absence of a principal market; or
in the most advantageous market for the asset or liability.
The fair value of an asset or a liability is measured using the assumptions that market participants would use
when pricing the asset or liability, assuming that market participants act in their economic best interest.
A fair value measurement of a non-financial asset takes into account a market participant's ability to generate
economic benefits by using the asset in its highest and best use or by selling it to another market participant that
would use the asset in its highest and best use.
The Group uses valuation techniques that are appropriate in the circumstances and for which sufficient data are
available to measure fair value, maximising the use of relevant observable inputs and minimising the use of
unobservable inputs.
All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised
within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair
value measurement as a whole:
Level 1 - Quoted (unadjusted) market prices in active markets for identical assets or liabilities
Level 2 - Valuation techniques for which the lowest level input that is significant to the fair value
measurement is directly or indirectly observable
Level 3 - Valuation techniques for which the lowest level input that is significant to the fair value
measurement is unobservable
For assets and liabilities that are recognised in the financial statements at fair value on a recurring basis, the
Group determines whether transfers have occurred between levels in the hierarchy by re-assessing
categorisation (based on the lowest level input that is significant to the fair value measurement as a whole) at the
end of each reporting period.
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
46
(continued)
Renegade Exploration Limited
ABN: 92 114 187 978
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2024
3
Material Accounting Policy Information
(e)
Fair value measurement
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).
(f)
Revenue and other income
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.
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.
Grant income
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.
(g)
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
Deferred tax is not provided for the following:
The initial recognition of an asset or liability in a transaction that is not a business combination and at the
time of the transaction, affects neither accounting profit nor taxable profit (tax loss).
Taxable temporary differences arising on the initial recognition of goodwill.
Temporary differences related to investment in subsidiaries, associates and jointly controlled entities to the
extent that the Group is able to control the timing of the reversal of the temporary differences and it is
probable that they will not reverse in the foreseeable future.
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the period when
the asset is realised or the liability is settled, based on tax rates (and tax laws) that have been enacted or
substantively enacted by the end of the reporting period.
Deferred tax assets are recognised for all deductible temporary differences and unused tax losses to the extent
that it is probable that taxable profit will be available against which the deductible temporary differences and
losses can be utilised.
47
(continued)
Renegade Exploration Limited
ABN: 92 114 187 978
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2024
3
Material Accounting Policy Information
(g)
Income tax
Current and deferred tax is recognised as income or an expense and included in profit or loss for the period
except where the tax arises from a transaction which is recognised in other comprehensive income or equity, in
which case the tax is recognised in other comprehensive income or equity respectively.
(h)
Property, plant and equipment
Each class of property, plant and equipment is carried at cost less, where applicable, any accumulated
depreciation and impairment losses.
Subsequent costs are included in the asset's carrying amount or recognised as a separate asset, as appropriate,
only when it is probable that future economic benefits associated with the item will flow to the Group and the cost
of the item can be measured reliably. Repairs and maintenance expenditure is charged to statement of profit or
loss during the financial period in which it is incurred.
Depreciation
Property, plant and equipment, is depreciated on a reducing balance basis and some of the fixed assets are
depreciated on a straight-line basis over their useful lives to the Group, commencing when the asset is ready for
use.
The depreciation rates used for each class of depreciable asset are shown below:
Class of Fixed Asset
Depreciation rate
Plant and Equipment
10% to 25%
Motor Vehicles
20%
Computer Equipment
45%
Camp Buildings
10%
At the end of each annual reporting period, the depreciation method, useful life and residual value of each asset
is reviewed. Any revisions are accounted for prospectively as a change in estimate.
Derecognition
Additions of property, plant and equipment is derecognised upon disposal or when no further future economic
benefits are expected from its use or disposal.
Gains and losses on disposals are determined by comparing proceeds with the carrying amount. These gains
and losses are recognised in the Profit or Loss.
Impairment
Carrying values of plant and equipment are reviewed at each balance date to determine whether there are any
objective indicators of impairment that may indicate the carrying values may be impaired.
Where an asset does not generate cash flows that are largely independent it is assigned to a cash generating
unit and the recoverable amount test applied to the cash generating unit as a whole.
48
(continued)
Renegade Exploration Limited
ABN: 92 114 187 978
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2024
3
Material Accounting Policy Information
(h)
Property, plant and equipment
Impairment
Recoverable amount is determined as the greater of fair value less costs to sell and value in use. The
assessment of value in use considers the present value of future cash flows discounted using an appropriate
pre-tax discount rate reflecting the current market assessments of the time value of money and risks specific to
the asset. If the carrying value of the asset is determined to be in excess of its recoverable amount, the asset or
cash generating unit is written down to its recoverable amount.
(i)
Exploration and development expenditure
Exploration, evaluation and development expenditure incurred is accumulated in respect of each identifiable
area of interest. Such expenditure comprises net direct costs and an appropriate portion of related overhead
expenditure and excludes 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 brought forward in respect of that area is recognised in
the consolidated statement of profit or loss.
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.
49
(continued)
Renegade Exploration Limited
ABN: 92 114 187 978
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2024
3
Material Accounting Policy Information
(j)
Impairment of non-financial assets
At the end of each reporting period the Group determines whether there is evidence of an impairment indicator
for non-financial assets. 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.
(k)
Financial instruments
A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or
equity instrument of another entity. Financial instruments are recognised initially on the date that the Group
becomes party to the contractual provisions of the instrument.
On initial recognition, all financial instruments are measured at fair value plus transaction costs (except for
instruments measured at fair value through profit or loss where transaction costs are expensed as incurred).
Financial assets
All financial assets are initially measured at fair value adjusted for transaction costs (where applicable) 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 recognised financial assets are subsequently measured in their entirety at either amortised cost or fair value,
depending on the classification of the financial assets.
Classification
On initial recognition, the Group classifies its financial assets into the following categories, those measured at:
amortised cost
50
(continued)
Renegade Exploration Limited
ABN: 92 114 187 978
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2024
3
Material Accounting Policy Information
(k)
Financial instruments
Financial assets
fair value through profit or loss - FVTPL
fair value through other comprehensive income - equity instrument (FVOCI - equity)
fair value through other comprehensive income - debt investments (FVOCI - debt)
Classifications are determined by both:
The contractual cash flow characteristics of the financial assets; and
The entities business model for managing the financial asset.
Amortised cost
The Group's financial assets measured at amortised cost comprise trade and other receivables and cash and
cash equivalents in the statement of financial position.
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.
Subsequent to initial recognition, these assets are carried at amortised cost using the effective interest rate
method less provision for impairment.
Fair value through other comprehensive income
Debt instruments
The Group has debt securities which are held within a business model whose objective is achieved by both
collecting contractual cash flows and having the intention to sell the debt securities before maturity. The
contractual terms of the debt securities give rise to cash flows that are solely payments of principal and interest
on the principal amount outstanding.
These assets are subsequently measured at fair value. Interest income calculated using the effective interest
rate method, foreign exchange gains and losses and impairment are recognised in profit or loss.
Other gains or losses are recognised in OCI.
On derecognition, gains and losses accumulated in OCI are reclassified to profit or loss.
51
(continued)
Renegade Exploration Limited
ABN: 92 114 187 978
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2024
3
Material Accounting Policy Information
(k)
Financial instruments
Financial assets
Financial assets through profit or loss
All financial assets not classified as measured at amortised cost or fair value through other comprehensive
income as described above are measured at FVTPL.
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.
Impairment
The Group recognises an allowance for expected credit losses ("ECLs") for all debt instruments not held at fair
value through profit or loss. ECLs are based on the difference between the contractual cash flows due in
accordance with the contract and all the cash flows that the Group expects to receive, discounted at an
approximation of the original effective interest rate. The expected cash flows will include cash flows from the sale
of collateral held or other credit enhancements that are integral to the contractual terms.
For trade receivables and contract assets, the Group applies a simplified approach in calculating ECLs.
Therefore, the Group does not track changes in credit risk, but instead recognises a loss allowance based on
lifetime ECLs at each reporting date. The Group has established a provision matrix that is based on its historical
credit loss experience, adjusted for forward-looking factors specific to the debtors and the economic
environment.
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
The Group measures all financial liabilities initially at fair value net of directly attributable transaction costs.
The financial liabilities of the Group comprise of trade payables.
Subsequently, financial liabilities are measured at amortised cost using the effective interest rate method except
for derivatives and financial liabilities designated at FVPL, which are carried subsequently at fair value with gains
or losses recognised in statement of profit or loss.
All interest-related charges and, if applicable, gains and losses arising on changes in fair value are recognised in
statement of profit or loss.
52
(continued)
Renegade Exploration Limited
ABN: 92 114 187 978
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2024
3
Material Accounting Policy Information
(l)
Non-current 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.
(m)
Trade and other receivables
Trade receivables, which generally have 30-90 day term, 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
(n)
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.
(o)
Goods and services tax (GST)
Revenue, expenses and assets are recognised net of the amount of goods and services tax (GST), except
where the amount of GST incurred is not recoverable from the Australian Taxation Office (ATO). 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 consolidated statement of financial position are shown inclusive of
GST.
The net amount of GST recoverable from, or payable to, ATO is included as part of receivables or payables in
the consolidated statement of financial position.
Cash flows in the consolidated statement of cash flows are included on a gross basis and the GST component of
cash flows arising from investing and financing activities which is recoverable from, or payable to, the taxation
authority is classified as operating cash flows.
(p)
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.
53
(continued)
Renegade Exploration Limited
ABN: 92 114 187 978
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2024
3
Material Accounting Policy Information
(q)
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
(r)
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. When 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 a
provision is presented in the statement of profit or loss net of any reimbursement.
If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that
reflects, when appropriate, the risks specific to the liability. When discounting is used, the increase in the
provision due to the passage of time is recognised as a finance cost
(s)
Earnings per share
Basic earnings per share
Basic earnings per share is calculated by dividing the profit/(loss) attributable to ordinary equity holders of the
parent by the weighted average number of ordinary shares outstanding during the year adjusted for any bonus
elements.
Diluted earnings per share
Diluted earnings per share is calculated by dividing the profit/(loss) attributable to ordinary equity holders of the
parent after adjusting for after-tax effect of interest and other financing costs associated with dilutive potential
ordinary shares by the weighted average number of ordinary shares outstanding during the year plus the
weighted average number of ordinary shares that would be issued on conversion of all the dilutive potential
ordinary shares into ordinary shares.
(t)
Share capital
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of ordinary shares
and share options which vest immediately are recognised as a deduction from equity, net of any tax effects.
54
(continued)
Renegade Exploration Limited
ABN: 92 114 187 978
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2024
3
Material Accounting Policy Information
(u)
Share based payment transactions
Employees (including directors) of the Group receive remuneration in the form of share-based payments,
whereby employees render services in exchange for equity instruments ("equity-settled transactions").
The Group operates equity-settled share-based payment Employee Share and Option Schemes ("ESOP") 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 of options is ascertained using a Black-Scholes pricing model
which incorporates all market vesting conditions as detailed in Note 24.
In valuing equity settled transactions, no account is taken of any performance conditions, other than conditions
linked to the price of the shares of Renegade Exploration Limited (‘market conditions’).
The cost of the equity settled transactions is recognised, together with a corresponding increase in equity, over
the period in which the performance conditions are fulfilled, ending on the date on which the relevant employees
become fully entitled to the award (‘vesting date’).
The cumulative expense recognised for equity settled transactions at each reporting date until vesting date
reflects (i) the extent to which the vesting period has expired and (ii) the number of awards that, in the opinion of
the Directors of the group, will ultimately vest. This opinion is formed based on the best available information at
balance date. No adjustment is made for the likelihood of the market performance conditions being met as the
effect of these conditions is included in the determination of fair value at grant date. The profit or loss charge or
credit for a period represents the movement in cumulative expense recognised at the beginning and end of the
period.
No expense is recognised for awards that do not ultimately vest, except for awards where vesting is conditional
upon a market condition.
Where the terms of an equity settled award are modified, as a minimum an expense is recognised as if the terms
had not been modified. In addition, an expense is recognised for any increase in the value of the transaction as a
result of the modification, as measured at the date of the modification.
Where an equity settled award is cancelled, it is treated as if it had vested on the date of the cancellation, and
any expense not yet recognised for the award is recognised immediately. However, if a new award is substituted
for the cancelled award and designated as a replacement award on the date that it is granted, the cancelled and
new award are treated as if they were a modification of the original award, as described in the previous
paragraph.
The dilutive effect, if any, of outstanding options is reflected in the computation of loss per share as disclosed in
Note 20.
(v)
Foreign currency transactions and balances
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 and the functional currency of the
overseas subsidiary is Canadian dollars.
55
(continued)
Renegade Exploration Limited
ABN: 92 114 187 978
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2024
3
Material Accounting Policy Information
(v)
Foreign currency transactions and balances
Transaction and balances
Foreign currency transactions are recorded at the spot rate on the date of the transaction.
At the end of the reporting period:
Foreign currency monetary items are translated using the closing rate;
Non-monetary items that are measured at historical cost are translated using the exchange rate at the date
of the transaction; and
Non-monetary items that are measured at fair value are translated using the rate at the date when fair
value was determined.
Exchange differences arising on the settlement of monetary items or on translating monetary items at rates
different from those at which they were translated on initial recognition or in prior reporting periods are
recognised through profit or loss, except where they relate to an item of other comprehensive income or whether
they are deferred in equity as qualifying hedges.
Group companies
The financial results and position of foreign operations whose functional currency is different from the Group's
presentation currency are translated as follows:
assets and liabilities are translated at year-end exchange rates prevailing at that reporting date;
income and expenses are translated at average exchange rates for the period where the average rate
approximates the rate at the date of the transaction; and
retained earnings are translated at the exchange rates prevailing at the date of the transaction.
Exchange differences arising on translation of foreign operations are transferred directly to the Group's foreign
currency translation reserve in the statement of financial position. These differences are recognised in the
consolidated statement of profit or loss and other comprehensive income in the period in which the operation is
disposed.
(w)
Segment reporting
Operating segments are reported in a manner consistent with the internal reporting provided to the key operating
decision maker. The key 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.
(x)
Adoption of New and Amended Accounting Policies not yet adopted by the Group
New and Amended Accounting Policies Not Yet Adopted by the Group.
AASB 2020-1: Amendments to Australian Accounting Standards – Classification of Liabilities as Current or Non-
current.
56
(continued)
Renegade Exploration Limited
ABN: 92 114 187 978
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2024
3
Material Accounting Policy Information
(x)
Adoption of New and Amended Accounting Policies not yet adopted by the Group
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 2025. The amendment is
not expected to have a material impact on the financial statements once adopted.
AASB 2021-7c: Amendments to Australian Accounting Standards – Effective Date of Amendments to AASB 10
and AASB 128 and Editorial Corrections.
AASB 2021-7c defers the application of 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 2026. The impact of
initial application is not yet known.
The Group plans on adopting the amendment for the reporting period ending 30 June 2025. The amendment is
not expected to have a material impact on the financial statements once adopted.
The Group has adopted certain standards and amendments which are effective for the first time for annual
periods beginning on or after 1 January 2023 (unless otherwise stated). The Directors have reviewed all of the
new and revised Standards and Interpretations issued by the AASB that are relevant to the Group and effective
for the annual financial statements beginning on or after 1 July 2023. The adoption of these standards has not
caused any material adjustments to the reported financial position, performance or cash flow of the Group or
refer to Note 3(b) for details of the changes due to standards adopted.
The Group has not early adopted any other standard, interpretation or amendment that has been issued but is
not yet effective.
57
(continued)
Renegade Exploration Limited
ABN: 92 114 187 978
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2024
4
Critical Accounting Estimates and Judgments
The preparation of the Group’s consolidated financial statements requires management to make judgements, estimates
and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the accompanying
disclosures, and the disclosure of contingent liabilities. Uncertainty about these assumptions and estimates could result
in outcomes that require a material adjustment to the carrying amount of assets or liabilities affected in future periods.
These estimates and judgements are based on the best information available at the time of preparing the financial
statements, however as additional information is known then the actual results may differ from the estimates.
The significant estimates and judgements made have been described below.
Key estimates - Determination of mineral resources and ore reserves
Renegade Exploration Limited estimates its mineral resources, and ore reserves in accordance with the Australasian
Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves 2004 (the ‘JORC code’). The
information on mineral resources and ore reserves was prepared by or under the supervision of Competent Persons as
defined in the JORC code. The amounts presented are based on the mineral resources and ore reserves determined
under the JORC code.
There are numerous uncertainties inherent in estimating mineral resources and ore reserves and assumptions that are
valid at the time of estimation may change significantly when new information becomes available.
Changes in the forecast prices of commodities, exchange rates, production costs or recovery rates may change the
economic status of reserves and may, ultimately, result in the reserves being restated. Such changes in reserves could
impact on depreciation and amortisation rates, asset carrying values, deferred stripping costs and provisions for
decommissioning and restoration.
Key estimates - Share based payments
The Group measures the cost of equity settled transactions with employees by reference to the fair value of the equity
instruments at the date at which they are granted. The fair value is determined by using the Black Scholes formula
taking into account the terms and conditions upon which the instruments were granted, as discussed in Note 24.
Key judgments - Capitalisation of exploration and evaluation expenditure
The Group capitalises expenditure relating to exploration and evaluation where it is considered likely to be recoverable
or where the activities have not reached a stage which permits a reasonable assessment of the existence of reserves.
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.
58
Renegade Exploration Limited
ABN: 92 114 187 978
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2024
4
Critical Accounting Estimates and Judgments
Key judgments - Deferred taxation
Determining income tax provisions involves judgment on the tax treatment of certain transactions. Deferred tax is
recognised on tax losses not yet used and on temporary differences where it is probable that there will be taxable
revenue against which these can be offset. Management has made judgments as to the probability of future taxable
revenues being generated against which tax losses will be available for offset based on budgets, current and future
expected economic conditions.
Key judgments - 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.
5
Other income
2024
$
2023
$
750,000
-
5,736
4,314
Forefeiture of deposit on Yukon Option agreement
Other income
Total other income
755,736
4,314
6
Other expenses
2024
$
2023
$
Conference and seminar
20,015
14,399
Printing and stationaries
15,366
6,846
Telecommunications
2,874
831
Other
190,088
86,044
Total other expenses
228,343
108,120
7
Discontinued Operations
Financial Performance Information
2024
$
2023
$
Other expenses
17,055
6,754
Loss from discontinued operations
17,055
6,754
59
Renegade Exploration Limited
ABN: 92 114 187 978
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2024
8
Income Tax Expense
The major components of tax expense (income) comprise:
2024
$
2023
$
Current tax
-
Deferred tax
-
-
(a)
Reconciliation of income tax to accounting profit/(loss):
The reconciliation of 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 is stated below.
2024
$
2023
$
Loss from all operations before income tax expenses
(1,140,926)
(1,537,240)
Prima facie tax payable (see Note 8(b)(i) and(ii))
(285,573)
(384,445)
Add: Tax effect of:
- other non-allowable items
978,619
173,401
- non-deductible expenses
222,475
26,385
915,521
(184,659)
Less: Tax effect of:
- Allowable deductions
(921,228)
(603,284)
Income tax benefit not brought to account
5,707
787,942
Income tax expense
-
-
The income tax is calculated using the income tax rates enforced by the respective country's taxation authorities.
Income tax rate applicable for the Company based in:
i.
Australia 25% (2023:25%)
ii.
Canada 27% (2023: 27%)
(b)
Deferred tax
Statement of financial position
2024
$
2023
$
Unrecognised tax effect of tax base items:
Deferred tax liability
Capitalised exploration and evaluation expenditure
941,827
887,408
Prepayments
11,003
11,117
Unrealised gain on shares
750
54,000
Offset by deferred tax assets
(953,580)
(952,525)
Deferred tax liability
-
-
60
-
-
-
Renegade Exploration Limited
ABN: 92 114 187 978
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2024
8
Income Tax Expense
(b)
Deferred tax
2024
$
2023
$
Deferred tax asset
Tax losses available to offset against future taxable income
14,685,166
14,587,476
Blackhole expense deduction for share issue cost
995
1,991
Accrued expenses
22,877
22,940
Other expenses
14,078
16,100
14,723,116
14,628,507
Deferred tax assets offset against deferred tax liabilities
(953,581)
(952,525)
Unrecognised deferred tax asset
(13,769,535)
(13,675,982)
Deferred tax asset
-
-
Unused tax losses
55,647,538
55,162,809
Tax effect of accumulated unused tax losses: Australia 25%(2023:25%),
Canada 27% (2023:27%) not brought to account
13,769,535
13,675,982
The benefit for tax losses will only be obtained if the Company:
i.
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.
continues to comply with the conditions for deductibility imposed by tax legislation in Australia; and
iii.
no changes in tax legislation in Australia, adversely affect the Company in realising the benefit from the
deductions for the losses.
(c)
Tax consolidation
Renegade Exploration has not formed a tax consolidation group and there is no tax sharing agreement.
9
Operating Segments
The Group has identified its operating segments based on the internal reports that are reviewed and used by the Board
of Directors (Chief Operating Decision Maker) in assessing performance and determining the allocation of resources.
The Group is managed primarily on the basis of geographical operating segments based in Australia and Canada which
involves mining exploration for zinc and gold. All of the Group's activities are interrelated. Therefore, 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 geographical location.
2024
2023
Australia
$
Canada
$
Total
$
Australia
$
Canada
$
Total
$
Current assets
1,364,967
1,101,094
2,466,061
296,016
1,143,150
1,439,166
Non-current assets
3,824,589
-
3,824,589
2,385,546
-
2,385,546
Total assets
5,189,556
1,101,094
6,290,650
2,681,562
1,143,150
3,824,712
61
Renegade Exploration Limited
ABN: 92 114 187 978
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2024
9
Operating Segments
2024
2023
Australia
$
Canada
$
Total
$
Australia
$
Canada
$
Total
$
Current liabilities
951,772
834
952,606
993,593
-
993,593
Non-current liabilities
-
-
-
-
-
-
Total liabilities
951,772
834
952,606
993,593
-
993,593
10
Cash and Cash Equivalents
Note
2024
$
2023
$
Cash at bank and in hand
10(a)
1,187,929
76,669
Total cash and cash equivalents
1,187,929
76,669
(a)
Reconciliation of cash
Cash and Cash equivalents reported in the consolidated statement of cash flows are reconciled to the equivalent
items in the consolidated statement of financial position as follows:
2024
$
2023
$
Cash and cash equivalents
1,187,929
76,669
Balance as per statement of cash flows
1,187,929
76,669
11
Trade and Other Receivables
2024
$
2023
$
Debtors
4,310
1,000
GST/VAT recoverable
113,517
54,768
Rental bond
6,500
6,500
Prepayments
43,211
44,079
Total trade and other receivables
167,538
106,347
Trade debtors and goods and services tax are non-interest bearing and generally recoverable on 30 day terms. The
carrying value of trade receivables and goods and services tax are considered a reasonable approximation of fair value
due to the short-term nature of the balances. The maximum exposure to credit risk at the reporting date is the fair value
of each class of receivable in the financial statements. The amount is fully collectible.
62
(continued)
Renegade Exploration Limited
ABN: 92 114 187 978
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2024
12
Assets Held for Sale
2024
$
2023
$
Deferred exploration and evaluation expenditure
1,099,680
1,133,830
Cash and cash equivalents
280
8,863
Other receivables and prepayments
1,134
457
Total assets held for sale
1,101,094
1,143,150
On 30 November 2020, the Group signed a share purchase agreement with Scharfe to sell the Yukon project.
Scharfe did not fulfill their exploration commitment in accordance with terms of the Share Purchase Agreement (SPA)
signed on 30 November 2020. The final payment of $1million was due on or before 30 November 2023. Scharfe failed
to comply with the option agreement and the Company terminated the agreement on 18 February 2024. Scharfe
forfeited the initial payment of $750,000 received and the Company recognised this amount as other income during the
year ended 30 June 2024 (refer to Note 5 and 16).
Renegade is currently evaluating the terms of a of the potential new buyer for the asset held for sale.
13
Other Financial Assets
2024
$
2023
$
Listed equity investments
9,500
113,000
Total other financial assets
9,500
113,000
Movements in financial assets
2024
2023
Number of
shares
$
Number of
shares
$
Balance at beginning of the year
3,000,000
113,000
40,500,000
2,215,000
Disposal
(2,500,000)
(92,500)
(37,500,000)
(1,533,432)
Gain/(loss) on disposal
-
(10,000)
-
(566,568)
Fair value adjustments (refer (ii) below)
-
(1,000)
-
(2,000)
Balance at end of the year
500,000
9,500
3,000,000
113,000
i.
Renegade holds 500,000 ordinary shares of Rafaella Resources Limited (2023: 500,000) and nil ordinary shares of
Strickland Metals Limited (2023: 2,500,000).
ii.
At the reporting date, the fair value gain of $1,000 was made (2023: loss $2,000).
14
Property, Plant and Equipment
2024
$
2023
$
Plant and equipment
At cost
205,843
209,356
Accumulated depreciation
(171,611)
(167,654)
Total plant and equipment
34,232
41,702
Motor vehicles
At cost
35,000
25,000
Accumulated depreciation
(13,479)
(6,252)
Total motor vehicles
21,521
18,748
Total property, plant and equipment
55,753
60,450
63
Renegade Exploration Limited
ABN: 92 114 187 978
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2024
14
Property, Plant and Equipment
Movement in the carrying amounts for each class of property, plant and equipment between the beginning and the end
of the current financial year:
Plant and
Equipment
$
Motor
Vehicles
$
Total
$
Year ended 30 June 2024
Balance at the beginning of year
41,702
18,748
60,450
Additions
1,218
10,000
11,218
Depreciation expense
(8,688)
(7,227)
(15,915)
Balance at the end of the year
34,232
21,521
55,753
Plant and
Equipment
$
Motor
Vehicles
$
Total
$
Year ended 30 June 2023
Balance at the beginning of year
-
-
-
Additions
52,267
25,000
77,267
Depreciation expense
(10,565)
(6,252)
(16,817)
Balance at the end of the year
41,702
18,748
60,450
15
Exploration and evaluation assets
2024
$
2023
$
Balance at beginning of the year
2,325,096
997,944
Expenditure incurred
1,443,740
1,327,152
Balance at end of the year
3,768,836
2,325,096
The recoverability of the carrying amount of the exploration and evaluation assets is dependent on successful
development and commercial exploitation, or alternatively, sale of the respective areas of interest.
Exploration and evaluation expenditure during the previous year ended 30 June 2023 included 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.
64
(continued)
Renegade Exploration Limited
ABN: 92 114 187 978
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2024
16
Trade and Other Payables
Note
2024
$
2023
$
Trade payables
(a)
774,834
82,097
Accruals
90,607
102,053
PAYG payable
19,042
19,767
Superannuation payable
7,274
8,753
Premium funding less unexpired interest
45,056
31,213
Advance for sale of Yukon project
(b)
-
750,000
Other payables
15,793
(290)
Total trade and other payables
952,606
993,593
(a)
Trade and other payables
Trade and other payables are unsecured, non-interest bearing and are normally settled within 30 days. The
carrying value of trade and other payables is considered a reasonable approximation of fair value due to the
short-term nature of the balances
(b)
Advance for sale of Yukon project
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:
i.
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;
ii.
The deadline to spend CAD500,000 on the project has been amended from 31 December 2021 to 30
November 2023; and
iii.
If the Expenditure is not made by 30 November 2023, Scharfe will pay AUD300,000 to Renegade in lieu of
the Expenditure.
The Company terminated the option agreement on 18 February 2024 as a result of failure to comply with the
option agreement. Scharfe forfeited the initial payment of $750,000 received, and the Company reognised this
amount as other income during the year ended 30 June 2024 (refer to Note 5).
17
Issued Capital
2024
$
2023
$
Ordinary shares
48,376,939
45,370,301
Share issue costs
(617,558)
-
Total issued capital
47,759,381
45,370,301
(a)
Movements in ordinary shares on issue
2024
2023
Number of
shares
$
Number of
shares
$
Balance at the beginning of year
948,123,780
45,370,301
889,626,638
44,956,501
Shares issue at $0.007 on 04 October 2022
-
-
2,057,142
14,400
Shares issue at $0.005 on 28 November 2022
-
-
30,000,000
150,000
Shares issue at $0.006 on 10 January 2023
-
-
10,000,000
60,000
Shares issue at $0.010 on 04 April 2023
-
-
1,440,000
14,400
Shares issue at $0.005 on 04 April 2023
-
-
5,000,000
25,000
Shares issue at $0.015 on 09 May 2023
-
-
10,000,000
150,000
Shares issue at $0.010 on 24 July 2023 (1)
5,000,000
50,000
-
-
65
Renegade Exploration Limited
ABN: 92 114 187 978
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2024
17
Issued Capital
(a)
Movements in ordinary shares on issue
2024
2023
Number of
shares
$
Number of
shares
$
Shares issue at $0.009 on 22 November 2023 (2)
1,600,000
14,400
-
-
Shares issue at $0.000 on 22 November 2023 (3)
10,000,000
-
-
-
Shares issue at $0.000 on 22 November 2023 (4)
5,000,000
-
-
-
Shares issue at $0.005 on 30 November 2023 (5)
30,000,000
150,000
-
-
Shares issue at $0.007 on 12 January 2024 (6)
2,000,000
14,000
-
-
Shares issue at $0.0074 on 12 March 2024 (7)
1,945,945
14,400
-
-
Shares issue at $0.010 on 03 May 2024 (8)
230,000,000
2,300,000
-
-
Shares issue at $0.01 on 20 June 2024 (9)
46,383,700
463,838
-
-
Transaction costs on share issue
-
(617,558)
-
-
Total ordinary shares on issue
1,280,053,425
47,759,381
948,123,780
45,370,301
1)
5,000,000 fully paid ordinary shares issued to Outland Investments Pty ltd as an establishment fee against acquired loan facility of $700,000.
2)
1,600,000 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 2023 until 29 February 2024.
3)
10 million Performance shares converted by Edward Fry to ordinary shares against nil consideration as per contract.
4)
5 million Performance shares converted by Mark Connely to ordinary shares against nil consideration as per contract.
5)
30,000,000 fully paid ordinary shares issued by conversion of Options 30M at exercise price of $0.005.
6)
2,000,000 fully paid ordinary shares issued to Outland Investments Pty Ltd as an establishment fee against extension of loan facility to $1,000,000.
7)
1,945,945 fully paid ordinary shares issued to Republic Public Relation Pty against investor relation and corporate communication services.
8)
$2.3 million private placement, through the issue of 230 million Shares at $0.01 per Share (Placement Shares). The Placement Shares were issued
with free attaching options as follows:
a)
A free attaching option, issued on the basis of 1 option for every 3 Placement Shares subscribed for, exercisable on or before 30 June
2025 at $0.015 each (Placement Options A); and
b)
An attaching bonus option to each Placement Option A, exercisable on or before 30 June 2026
9)
46,383,700 shares issued on 20 June 2024 in lieu to outstanding Director fees and Outland Loan repayment terms and conditions are defined
below:
i.
33,000,000 Shares issued to Outland loan investment to repay loan amounting $ 330,000.
The deemed issue price of the Shares is $0.01 per Share. The Placement Options are being issued on the same basis as the
Placement, that is, as free-attaching bonus options as follows:
a.
Placement Options A: a free attaching option, issued on the basis of 1 option for every 3 Placemen Shares issued, exercisable
on or before 30 June 2025 at $0.015 each; and
b.
An attaching bonus option to each Placement Option A, exercisable on or before 30 June 2026 at $0.025 each, with vesting
subject to exercise of the Placement Option A.
ii.
13,383,700 Shares issued to directors in lieu of outstanding fee of amounting $133,838:
a)
up to 10,000,000 Shares to Mr Robert Kirtlan;
b)
up to 1,500,000 Shares to Mr Mark Wallace;
c)
up to 1,883,700 Shares to Mr Mark Connelly,
(b)
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.
(c)
Capital management
The key objectives of the Company when managing capital is to safeguard its ability to continue as a going
concern and maintain optimal benefits to stakeholders.
There has been no change to capital risk management policies during the year.
The Company manages its capital structure and makes funding decisions based on the prevailing economic
environment and has a number of tools available to manage capital risk. These include maintaining a diversified
debt portfolio, the ability to adjust the size and the issue of new shares. The Group’s capital comprises share
66
(continued)
(continued)
Renegade Exploration Limited
ABN: 92 114 187 978
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2024
17
Issued Capital
(c)
Capital management
capital, reserves less accumulated losses amounting to $5,338,044 at 30 June 2024 (2023: $2,831,119).
The Board monitors a range of financial metrics including return on capital employed and gearing ratios. A key
objective of the Company's capital risk management is to maintain compliance with the covenants attached to
the Company's debts. Throughout the year, the Company has complied with these covenants. The Group was
ungeared at year end and not subject to any externally imposed capital requirements. Refer Note 25 for further
information on the Group’s financial risk management policies.
(d)
Share capital
At 30 June 2024, there were 294,255,808 unissued ordinary shares under options (2023: 85,000,000 options
and performance right). During the financial year 294,255,808 options were issued and 30 million options
exercised and 5 million options expired. Since the end of the financial year, no options have been issued,
exercised or expired.
No option holder has any right under the options to participate in any other share issue of the Company or any
other entity. Information relating to the Renegade Exploration Limited Employee Share Option Plan, including
details of options issued under the plan, is set out in Note 24.
18
Accumulated Losses
2024
$
2023
$
Accumulated losses at the beginning of the year
(42,534,030)
(41,171,790)
Net loss attributable to member of parent entity
(1,140,926)
(1,537,240)
Transfer from Reserves
18(a)
175,000
175,000
Accumulated losses at end of the year
(43,499,956)
(42,534,030)
(a)
Transfers from Reserves
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 5 million options not exercised and 30 million
options exercised.
19
Reserves
2024
$
2023
$
Foreign currency translation reserve
Opening balance
(410,253)
(418,493)
Transfers in
(23,137)
8,240
Total foreign currency translation reserve
(433,390)
(410,253)
Option reserve
Opening balance
405,101
353,359
Shares based payment transactions
1,281,908
226,742
Transfers of fair value of options exercised
(175,000)
(175,000)
Total Option reserve
1,512,009
405,101
Total reserves
1,078,619
(5,152)
67
(continued)
Renegade Exploration Limited
ABN: 92 114 187 978
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2024
19
Reserves
The foreign currency translation reserve is used to record the currency difference arising from the translation of the
financial statements of the foreign operation.
20
Earnings Per Share (EPS)
(a) Reconciliation of earnings to profit or loss from continuing operations
2024
$
2023
$
Loss used in calculating basic and dilutive EPS
(1,123,871)
(1,530,486)
(b) Reconciliation of earnings to profit or loss from discontinuing operations
2024
$
2023
$
Loss from discontinuing operations
(17,055)
(6,754)
(c) Weighted average number of ordinary shares outstanding during the year used in calculating basic EPS
2024
No.
2023
No.
Weighted average number of ordinary shares
outstanding during the year used in calculating
basic EPS
1,019,703,207
916,376,367
(d) Effect of dilution
2024
No.
2023
No.
Adjusted weighted average number of ordinary shares used in
calculating diluted loss per share:
1,019,703,207
916,376,367
2024
Cents
2023
Cents
Basic and Diluted profit/(loss) per share (cents per share) from
continuing operations
(0.11)
(0.1700)
Basic and Diluted profit/(loss) per share (cents per share) from
discontinued operations
(0.002)
(0.0007)
Diluted earnings per share are not disclosed as the economic entity incurred a loss and the options are not deemed to
be dilutive.
21
Dividends
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 2024 (2023: Nil). The balance of the franking account as at 30 June 2024 is Nil (2023: Nil).
68
(continued)
Renegade Exploration Limited
ABN: 92 114 187 978
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2024
22
Cash Flow Information
(a)
Reconciliation of result for the year to cashflows from operating activities
2024
$
2023
$
Loss for the year
(1,140,926)
(1,537,240)
Cash flows excluded from loss attributable to operating activities
Non-cash flows in loss:
- depreciation
15,915
16,816
- loss from discontinued operation
17,055
-
-(gain)/loss on disposal of project
-
(154,068)
- fair value movements on investments
1,000
414,500
- other income
(750,000)
-
- share options expensed
889,900
105,542
Changes in assets and liabilities:
- (increase)/decrease in trade and other receivables
(61,191)
(18,215)
- increase/(decrease) in trade and other payables
175,338
(95,119)
Cashflows from/(used in) operating activities
(852,909)
(959,648)
23
Interests in Subsidiaries
The consolidated financial statements incorporate the assets, liabilities and results of the following subsidiaries in
accordance with the accounting policy described in Note 3(c). Details of subsidiaries are as follows:
Entity name
Principal place of
business/ Country of
Incorporation
Percentage
Owned (%)*
2024
Percentage
Owned (%)*
2023
Overland Resources Yukon Limited
Canada
100
100
Renegade Exploration (QLD) Pty Ltd
Australia
100
100
*The percentage of ownership interest held is equivalent to the percentage voting rights for all subsidiaries.
69
Renegade Exploration Limited
ABN: 92 114 187 978
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2024
24
Share-Based Payments
At 30 June 2024 the Group has the following share-based payment schemes:
(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. A summary of the Company options issued is as
follows:
(i) Options
30 June 2024
Grant Date
Expiry Date
Issued to
Exercise
price
Start of the
year
Number
Granted
during the
year
Number
(Note 1)
Exercised
during the
year
Number
Expired
during the
year
Number
Balance at the
end of the year
Number
Exercisable at the
end of the year
Number
30 November 2020
30 November 2023
KMP
$0.005
25,000,000
-
(25,000,000)
-
-
-
30 November 2020
30 November 2023
KMP
$0.005
5,000,000
-
-
(5,000,000)
-
-
30 November 2020
30 November 2023
KMP
$0.005
5,000,000
-
(5,000,000)
-
-
-
20 June 2024
30 June 2025
KMP
$0.015
-
4,461,233
-
-
4,461,233
4,461,233
20 June 2024
30 June 2026
KMP
$0.025
-
4,461,233
-
-
4,461,233
4,461,233
20 June 2024
30 June 2027
KMP
$0.025
-
50,000,000
-
-
50,000,000
50,000,000
20 June 2024
30 June 2027
Employee
$0.025
-
20,000,000
-
-
20,000,000
20,000,000
35,000,000
78,922,466
(30,000,000)
(5,000,000)
78,922,466
78,922,466
Weighted remaining contractual life (years)
0.419
2.250
Weighted average exercise price
$0.005
$0.024
The Options exercised 5,000,000 relates to Graeme Smith - Company Secretary
70
The Options exercised 5,000,000 relate to Peter Valgaries a key management personnel resigned during the year ended 30 June 2023.
Renegade Exploration Limited
ABN: 92 114 187 978
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2024
24
Share-Based Payments
(i) Options
Note 1
Total options issued to Directors: 4,461,233 (against repayment of fees)
Breakdown of Shares and
Granted:
1.
Mr. Robert Kirtlan
Placement Options A: up to 3,333,333
Placement Options B: up to 3,333,333
2.
Mr. Mark Wallace
Placement Options A: up to 500,000
Placement Options B: up to 500,000
3.
Mr. Mark Connelly
Placement Options A: up to 627,900
Placement Options B: up to 627,900
Total Placement Options
Placement Options A: 4,461,233
Placement Options B: 4,461,233
Placement Option A
Description: A free attaching option issued on the basis of 1 option for every 3 Placement Shares subscribed for.
Exercise Price: $0.015 each.
Expiry Date: Exercisable on or before 30 June 2025.
Placement Option B
Description: An attaching bonus option issued for each Placement Option A.
Exercise Price: $0.025 each.
Expiry Date: Exercisable on or before 30 June 2026.
Vesting Condition: Contingent upon the exercise of the corresponding Placement Option A.
Total Options Issued to Directors
Total Options: 50,000,000
Allocation of Options
1.
Robert Kirtlan (or nominee): 30,000,000 Options
2.
Mark Wallace (or nominee): 15,000,000 Options
3.
Mark Connelly (or nominee): 5,000,000 Options
Terms and conditions:
Entitlement: Each option entitles the holder to subscribe for one share upon exercise.
Exercise Price: $0.025 per option, unless a cashless exercise option is utilized.
Vesting: Options will vest immediately.
Expiry Date: All options expire on 30 June 2027.
Valuation: Options are valued using the Black-Scholes model; detailed valuation for the 50 million options can be
found on page 27 of the report.
Specific Allocation of 20 million Options
Total: 20,000,000 unlisted options
Edward Fry: 15,000,000 options at an exercise price of $0.025 each, expiring on 30 June 2027.
Graeme Smith (or nominee): 5,000,000 options at an exercise price of $0.025 each, expiring on 30 June 2027.
Options are valued using the Black-Scholes model. Input used for valuation as below:
71
(continued)
Renegade Exploration Limited
ABN: 92 114 187 978
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2024
24
Share-Based Payments
(i) Options
30 June 2024*
Type
Grant date
Number of
options/right
s
Expiry/last
exercise date
Fair value
at grant
date
$
Exercise
price
$
Expected
share price
volatility
Risk-free
Interest
rate
Total value
granted/
expense
recognised
in FY24
$ (note 1)
Vested
% vested
in period
Mr Robert Kirtlan
Options 18 June 2024
30,000,000 30 June 2027
0.0111
0.025
128.40%
3.49%
331,930
30,000,000
100%
Mr Mark Wallace
Options 18 June 2024
15,000,000 30 June 2027
0.0111
0.025
128.40%
3.49%
165,965
15,000,000
100%
Mr Mark Connelly
Options 18 June 2024
5,000,000 30 June 2027
0.0111
0.025
128.40%
3.49%
55,322
5,000,000
100%
Edward Fry
Options 18 June 2024
15,000,000 30 June 2027
0.0111
0.025
128.40%
3.49%
165,965
15,000,000
100%
Graeme Smith
Options 18 June 2024
5,000,000 30 June 2027
0.0111
0.025
128.40%
3.49%
55,322
5,000,000
100%
Total
70,000,000
774,504
70,000,000
* A total of 8,922,466 free attaching options were granted to directors
Note 1
Total share base payment expense for the year ended 30 June 2024 $889,900 includes:
$774,504 options issued to employees and KMPs
$22,596 performance rights expense in relation to Edward Fry and Mark Connelly. Performance rights were issued in previous years and expensed over the vesting period.
$28,800 shares issued to Republic Public Relation Pty against investor relation and corporate communication services. Also refer Note 17.
$64,000 shares issued to Outland Investments Pty Ltd as an establishment fee against acquired loan facility and extension of loan facility. Also refer Note 17.
72
(continued)
Renegade Exploration Limited
ABN: 92 114 187 978
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2024
24
Share-Based Payments
(i) Options
30 June 2023
Grant Date
Expiry Date
Issued to
Exercise
price
Start of
the year
Number
Granted
during the
year
Number
Exercised during
the year
Number
Expired
during the
year
Number
Balance at the
end of the year
Number
Exercisable at
the end of the
year
Number
30 November 2020
30 November 2023
KMP
$0.005
30,000,000
-
(30,000,000)
-
-
30 November 2020
30 November 2023
KMP
$0.005
25,000,000
-
-
25,000,000
25,000,000
30 November 2020
30 November 2023
KMP
$0.005
5,000,000
-
-
5,000,000
5,000,000
30 November 2020
30 November 2023
KMP
$0.005
5,000,000
-
(5,000,000)
-
-
30 November 2020
30 November 2023
KMP
$0.005
5,000,000
-
-
5,000,000
5,000,000
70,000,000
-
(35,000,000)
35,000,000
35,000,000
Weighted remaining life (years)
0.420
0.419
Weighted average exercise price
$0.005
$0.005
73
(continued)
Renegade Exploration Limited
ABN: 92 114 187 978
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2024
24
Share-Based Payments
(ii) Performance rights
30 June 2024
Grant Date
Expiry Date
Issued to
Exercise
price
Note
Start of the
year
Number
Granted
during the
year
Number
Exercised
during the year
Number
Expired
during the
year
Number
Balance at the
end of the year
Number
Exercisable at
the end of the
year
Number
29 November 2022
02 December 2024
KMP
$0.000
I
5,000,000
-
(5,000,000)
-
-
-
29 November 2022
02 December 2025
KMP
$0.000
II
10,000,000
-
-
-
10,000,000
10,000,000
14 October 2022
07 November 2024
Employee
$0.000
III
10,000,000
-
(10,000,000)
-
-
-
25,000,000
-
(15,000,000)
-
10,000,000
10,000,000
Weighted remaining life (years)
1.740
1.425
1.425
Weighted average exercise price
$0.000
$.0000
$0.000
30 June 2023
Grant Date
Expiry Date
Issued to
Exercise
price
Note
Start of the
year
Number
Granted
during the
year
Number
Exercised
during the year
Number
Expired
during the
year
Number
Balance at the
end of the year
Number
Exercisable at
the end of the
year
Number
29 November 2022
02 December 2024
KMP
$0.000
I
-
5,000,000
-
-
5,000,000
5,000,000
29 November 2022
02 December 2025
KMP
$0.000
II
-
10,000,000
-
-
10,000,000
10,000,000
14 October 2022
07 November 2024
Employee
$0.000
III
-
10,000,000
-
-
10,000,000
10,000,000
-
25,000,000
-
-
25,000,000
25,000,000
74
1.740
1.740
1.740
$0.000
$.0000
$0.000
Weighted remaining life (years)
Weighted average exercise price
Renegade Exploration Limited
ABN: 92 114 187 978
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2024
24
Share-Based Payments
(ii) Performance rights
I.
Issued 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.
II.
Issued in three tranches to Mark Connelly. 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.
III.
Total 10 million performance rights issued to Edward Fry 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) Options
(i) Options
30 June 2024
Grant Date
Expiry Date
Exercise price
Start of the
year
Number
Granted during
the year
Number
Exercised during
the year
Number
Expired during the
year
Number
Balance at the
end of the year
Number
Exercisable at
the end of the
year
Number
20 June 2024
(Note 1) 30 June 2025
$0.015
-
87,666,671
-
-
87,666,671
87,666,671
20 June 2024
(Note 1) 30 June 2026
$0.025
-
87,666,671
-
-
87,666,671
87,666,671
20 June 2024
(Note 2) 28 June 2027
$0.015
-
40,000,000
-
-
40,000,000
40,000,000
-
215,333,342
-
-
215,333,342
215,333,342
75
(continued)
(continued)
Renegade Exploration Limited
ABN: 92 114 187 978
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2024
24
Share-Based Payments
(i) Options
Note 1
Options granted during the year comprise free attaching placement options A and placement options B issued to the subscribers of the 230 million Placement Shares and to Outland
Investment Pty Ltd as part of the loan settlement, as follows:
Placement Option A: A free attaching option issued on the basis of 1 option for every 3 Placement Shares subscribed for (76,666,671 options), exercisable on or before 30 June
2025 at $0.015 each.
Placement Option B: An attaching bonus option issued for each Placement Option A (76,666,671 options), exercisable on or before 30 June 2026 at $0.025 each, with vesting
contingent upon the exercise of the corresponding Placement Option A.
Additionally, 11,000,000 Placement Options A and 11,000,000 Placement Options B issued as follows:
i.
Placement Options A: A free attaching option, issued on the basis of 1 option for every 3 Placement Shares issued, exercisable on or before 30 June 2025 at $0.015
each.
ii.
Placement Options B: An attaching bonus option for each Placement Option A, exercisable on or before 30 June 2026 at $0.025 each, with vesting subject to the exercise
of the corresponding Placement Option A.
40 million Broker Options were issued in total, with 20 million issued to Euroz Hartleys and 20 million to Plutus Capital, in connection with facilitating the 230 million Placement
Shares. The options were valued using the Black-Scholes model. The terms and conditions of the option grants are as follows:
30 June 2024
Type
Grant date
Number of
options/right
s (Note 1)
Expiry/last
exercise date
Fair value
at grant
date
$
Exercise
price
$
Expected
share price
volatility
Risk-free
Interest
rate
Total value
granted
$
Vesting
immediately
Euroz Hartley
Options 18 June 2024
20,000,000 18 June 2027
0.0121
0.015
128.40%
3.49%
242,414
20,000,000
Plutus
Options 18 June 2024
20,000,000 18 June 2027
0.0121
0.015
128.40%
3.49%
242,414
20,000,000
40,000,000
484,828
40,000,000
76
(continued)
(continued)
Renegade Exploration Limited
ABN: 92 114 187 978
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2024
24
Share-Based Payments
(ii) Performance rights (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 (see Note 15).
30 June 2024
Grant Date
Expiry Date
Exercise
price
Start of the year
Number
Granted during
the year
Number
Exercised during
the year
Number
Expired during
the year
Number
Balance at the
end of the year
Number
Exercisable at
the end of the
year
Number
10 January 2023
10 January 2028
$0.000
25,000,000
-
-
-
25,000,000
25,000,000
25,000,000
-
-
-
25,000,000
25,000,000
4.534
3.532
3.532
10 January 2028
Weighted remaining contractual life (years)
Weighted average exercise price
$0.000
$0.000
$0.000
30 June 2023
Grant Date
Expiry Date
Exercise
price
Start of the year
Number
Granted during
the year
Number
Exercised during
the year
Number
Expired during
the year
Number
Balance at the
end of the year
Number
Exercisable at
the end of the
year
Number
10 January 2023
10 January 2028
$0.000
-
25,000,000
-
-
25,000,000
25,000,000
-
25,000,000
-
-
25,000,000
25,000,000
Weighted remaining contractual life (years)
4.53
4.53
4.53
Weighted average exercise price
$0.000
$0.000
$0.000
The Company issued 50 million performance rights during prior year and these were valued using the share price on the grant date.
These performance rights were issued and valued during the year ended 30 June 2023.
77
(continued)
Renegade Exploration Limited
ABN: 92 114 187 978
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2024
24
Share-Based Payments
2023:
Performance right
holder
Grant date
Number of
performance
rights
Share price at
grant price
$
Total fair
value
$
Director
29 November 2022
15,000,000
0.006
90,000
Employee
14 October 2022
10,000,000
0.007
70,000
Burke Copper Pty Ltd
10 January 2023
25,000,000
0.006
150,000
78
(continued)
Renegade Exploration Limited
ABN: 92 114 187 978
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2024
25
Financial Risk Management
The Group is exposed to a variety of financial risks through its use of financial instruments. The Group’s principal
financial liabilities, other than derivatives, comprise loans and borrowings, and trade and other payables. The main
purpose of these financial liabilities is to finance the Group’s operations. The Group’s principal financial assets include
trade receivables, and cash and short-term deposits that derive directly from its operations. The Group does not hold or
issue derivative financial instruments.
The Group‘s overall risk management plan seeks to minimise potential adverse effects due to the unpredictability of
financial markets. The Group is exposed to market risk, credit risk and liquidity risk. The Group’s Board of Directors
oversees the management of these risks. The Group’s Board is supported by the senior management advises on
financial risks and the appropriate financial risk governance framework for the Group. The senior management provides
assurance to the Group’s Board of Directors that the Group’s financial risk activities are governed by appropriate
policies and procedures and that financial risks are identified, measured and managed in accordance with the Group’s
policies and risk objectives. Risk management policies and systems are reviewed regularly to reflect changes in market
conditions and the Group’s activities.
The day-to-day risk management is carried out by the Group’s finance function under policies and objectives which
have been approved by the Board of Directors. The senior management has been delegated the authority for designing
and implementing processes which follow the objectives and policies. This includes monitoring the levels of exposure to
interest rate and foreign exchange rate risk and assessment of market forecasts for interest rate and foreign exchange
movements. The Board of Directors receives monthly reports which provide details of the effectiveness of the
processes and policies in place. Mitigation strategies for specific risks faced are described below:
Market risk
Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes
in market prices. Market risk comprises three types of risk: interest rate risk, currency risk and other price risk, such as
equity price risk and commodity risk. Financial instruments affected by market risk include loans and borrowings,
deposits, debt and equity investments and derivative financial instruments.
The sensitivity analyses in the following sections relate to the position as at 30 June 2024 and 30 June 2023. The
sensitivity analyses have been prepared on the basis that the amount of net debt, the ratio of fixed to floating interest
rates of debt and derivatives and the proportion of financial instruments in foreign currencies at 30 June 2024.
Liquidity risk
Liquidity risk arises from the Group’s management of working capital and the finance charges and principal repayments
on its debt instruments. It is the risk that the Group will encounter difficulty in meeting its financial obligations as they fall
due.
The Group’s policy is to ensure that it will always have sufficient cash to allow it to meet its liabilities as and when they
fall due. The Group maintains cash and marketable securities to meet its liquidity requirements for up to 60-day periods.
Funding for long-term liquidity needs is additionally secured by an adequate amount of committed credit facilities and
issue of equity instruments.
The Group manages its liquidity needs by carefully monitoring scheduled debt servicing payments for long-term
financial liabilities as well as cash-outflows due in day-to-day business. Liquidity needs are monitored in various time
bands, on a day-to-day and week-to-week basis, as well a rolling 30-day projection. Long-term liquidity needs for a 180-
day and a 360-day period are identified monthly. At the reporting date, these reports indicate that the Group expected to
have sufficient liquid resources to meet its obligations under all reasonably expected circumstances and will not need to
draw down any of the financing facilities.
Maturity analysis for financial liabilities
Financial liabilities of the Group comprise trade and other payables. As at 30 June 2024 and 30 June 2023, all financial
liabilities contractually mature within 60 days.
79
Renegade Exploration Limited
ABN: 92 114 187 978
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2024
25
Financial Risk Management
Interest rate risk
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of
changes in market interest rates. The Group’s exposure to the risk of changes in market interest rates relates primarily
to the Group’s earnings on cash and term deposits.
The Group manages the risk by investing in short term deposits.
2024
$
2023
$
Cash and cash equivalents
1,187,929
76,669
Interest rate sensitivity analysis
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 movements
Effect on post tax loss
increase/(decrease)
Effect on equity including
accumulated losses
increase/(decrease)
Judgements of reasonably possible
movements
2024
$
2023
$
2024
$
2023
$
Increase 100 basis points
11,879
767
11,879
767
Decrease 100 basis points
(11,879)
(767)
(11,879)
(767)
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 2023.
Credit risk
Credit risk is the risk that a counterparty will not meet its obligations under a financial instrument or customer contract,
leading to a financial loss. The Group is exposed to credit risk from its operating activities and from its financing
activities, including deposits with banks and financial institutions, foreign exchange transactions and other financial
instruments.
At 30 June 2024, the Group held cash and bank deposits. The credit risk for liquid funds and other short-term financial
assets is considered negligible, since the counterparties are reputable banks with high quality external credit ratings
from Standard & Poors of A or above (long term). The Group has no past due or impaired debtors as at 30 June 2024
(2023: Nil).
80
Renegade Exploration Limited
ABN: 92 114 187 978
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2024
25
Financial Risk Management
Foreign exchange risk
Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes
in foreign exchange rates. The Group’s exposure to the risk of changes in foreign exchange rates relates primarily to
the Group’s operating activities (when revenue or expense is denominated in a foreign currency) and the Group’s net
investments in foreign subsidiaries. The Group’s statement of financial position can be affected by movements in the
CAD$/AUD$ exchange rates as a result of operations in Canada and expenditure in Canadian dollars. The Group seeks
to mitigate the effect of its foreign currency exposure by holding cash in Canadian dollars to match the expenditure
commitments.
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
Aggregate net fair value
2024
$
2023
$
2024
$
2023
$
Financial assets
Cash and cash equivalents
1,187,929
76,669
1,187,929
76,669
Receivables
124,327
62,268
124,327
62,268
Listed equity investments
9,500
113,000
9,500
113,000
1,321,756
251,937
1,321,756
251,937
Financial Liabilities
Payables
952,606
993,593
952,606
993,593
952,606
993,593
952,606
993,593
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.
26
Auditors' 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:
2024
$
2023
$
Audit or review of the current year financial report of the Company
46,750
43,500
Total Auditors' remuneration
46,750
43,500
81
Renegade Exploration Limited
ABN: 92 114 187 978
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2024
27
Parent Entity
Information relating to the parent entity being Renegade Exploration Limited is disclosed below.
2024
$
2023
$
Statement of Financial Position
Assets
Current assets
1,364,977
296,027
Non-current assets
3,824,589
2,385,546
Total Assets
5,189,566
2,681,573
Liabilities
Current liabilities
951,772
990,895
Total Liabilities
951,772
990,895
Net Assets
4,237,794
1,690,678
Equity
Issued capital
47,759,381
45,370,301
Accumulated losses
(45,033,596)
(44,084,725)
Share based payment reserve
1,512,009
405,102
Total Equity
4,237,794
1,690,678
Consolidated Statement of Profit or Loss
and Other Comprehensive Income
Total loss for the year
(1,123,872)
(1,530,486)
Total comprehensive income
(1,123,872)
(1,530,486)
As at 30 June 2024, the Accumulated losses includes the transfer of $175,000 from share based payment reserve to
accumulated losses.
28
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) Totals of remuneration paid
Key management personnel remuneration included within employee expenses for the year is shown below:
2024
$
2023
$
Short-term employee benefits
423,450
428,000
Share-based payments
564,149
18,438
Other benefits
133,837
-
Totals of remuneration
1,121,436
446,438
82
Renegade Exploration Limited
ABN: 92 114 187 978
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2024
29
Related Parties
(a) The Group's main related parties are as follows:
The ultimate parent entity, which exercises control over the Group, is Renegade Exploration Limited.
Key management personnel - refer to Note 28.
Subsidiaries - refer to Note 23
Other related parties include close family members of key management personnel and entities that are controlled or
significantly influenced by those key management personnel or their close family members.
(b) Transactions with related parties
There were no related party transactions for the year ended 30 June 2024 (2023: Nil) other than those referred in Note
29(a).
30
Contracted Commitments
Under the terms and conditions of being granted exploration licenses, the Group has no annual commitments for the
term of the license in the current year. Further, the Group has no other capital commitments at 30 June 2024.
2024
$
2023
$
Australia
-
150,000
Total contract commitments
-
150,000
31
Contingent Assets and Liabilities
In the opinion of the Directors, the Company and its controlled entities did not have any contingent assets or liabilities at
30 June 2024 (30 June 2023: None).
32
Events Occurring After the Reporting Date
No matters or circumstances have arisen since the end of the financial year which significantly affected or could
significantly affect the operations of the Group, the results of those operations, or the state of affairs of the Group in
future financial years.
83
Renegade Exploration Limited
ABN: 92 114 187 978
Annual Report for the year ended 30 June 2024
Consolidated entity disclosure statement
As at 30 June 2024
Name of entity
Type of entity
Trustee,
partner or
participant in
JV
% of share
capital
Place of
business/
country of
incorporation
Australian
resident or
foreign
resident
Foreign
jurisdiction(s)
of foreign
residents
Renegade Exploration
Limited
Australian
Public Company
N/A
100
Australia
Australia
N/A
Overland Resources Yukon
Limited
Company
N/A
100
Canada
Canada
Canada
Renegade Exploration
(QLD) Pty Ltd
Australian
Proprietary
Company
N/A
100
Australia
Australia
N/A
84
Renegade Exploration Limited
ABN: 92 114 187 978
Directors' Declaration
The directors of the Company declare that:
1.
the financial statements and notes of the Consolidated Group for the year ended 30 June 2024 are in accordance with
the Corporations Act 2001 and:
a.
complies with Australian Accounting Standards (including the Australian Accounting Interpretations), and the
Corporations Regulations 2001;
b.
gives a true and fair view of the financial position and performance of the Consolidated Group;
c.
the financial statements and notes also comply with International Financial Reporting Standards as disclosed in
Note 2(b);
d.
the consolidated entity disclosure statement disclosed is true and correct.
2.
in the directors' opinion, there are reasonable grounds to believe that the Company will be able to pay its debts as and
when they become due and payable.
3.
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 2024.
This declaration is made in accordance with a resolution of the Board of Directors.
Director ..................................................................
Mr Robert Kirtlan
Dated 30 September 2024
85
Liability limited by a scheme approved under Professional Standards Legislation.
CLOSING REPORT
Renegade Exploration Limited
Audit for Year Ended 30 June 2024
Page 2
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
Dear Board of Directors,
We have completed our audit of Renegade Exploration Limited for the financial year ended 30 June
2024 and we are writing to report our findings.
This report outlines the following:
▪
Our quality control procedures
▪
Our compliance with independence requirements.
▪
Our considerations of materiality, adjusting journal entries and unadjusted errors.
▪
Particular risks associated with this audit and our response to these.
▪
Significant areas of judgement.
▪
Our consideration of the going concern basis and subsequent events.
▪
Control weaknesses found and similar matters.
▪
Our intended opinion.
▪
Points for future consideration.
This report is intended solely for the use of the members of the Board of Directors and should not
be used for any other purpose nor given to any other party without our prior written consent.
We would like to thank your finance team for the assistance provided to us during the engagement.
I look forward to the opportunity of discussing with you any aspects of this report or any other issues
arising from our work.
If you have any queries, for the meantime, please feel free to contact me on 08 9481 3188
Yours faithfully,
Martin Michalik
Director
30 September 2024
Page 3
TABLE OF CONTENTS
1.
QUALITY CONTROL ............................................................................................................................................................................................................ 4
2.
INDEPENDENCE .................................................................................................................................................................................................................. 4
3.
AUDITOR ROTATION ........................................................................................................................................................................................................... 5
4.
MATERIALITY, ADJUSTED AND UNADJUSTED ERRORS ............................................................................................................................................... 5
1.
MATERIALITY THRESHOLDS ................................................................................................................................................................. 5
2.
SIGNIFICANT ADJUSTED AUDIT DIFFERENCES....................................................................................................................................... 6
3.
UNADJUSTED AUDIT DIFFERENCES - NONE .......................................................................................................................................... 6
5.
KEY AUDIT MATTERS ......................................................................................................................................................................................................... 7
6.
OTHER SIGNIFICANT RISKS ADDRESSED ....................................................................................................................................................................... 8
7.
CHANGES IN ACCOUNTING POLICY ................................................................................................................................................................................ 9
8.
SUBSEQUENT EVENTS ...................................................................................................................................................................................................... 9
9.
COMMITMENTS AND CONTINGENCIES ........................................................................................................................................................................... 9
10.
SUMMARY OF CONTROL WEAKNESSES AND OTHER MATTERS .............................................................................................................................. 10
11.
AUDIT OPINION.................................................................................................................................................................................................................. 10
12.
S311 ISSUES ...................................................................................................................................................................................................................... 10
13.
OUTSTANDING MATTERS ................................................................................................................................................................................................ 10
14.
APPENDIX 1 – AUDITORS’ INDEPENDENCE DECLARATION ....................................................................................................................................... 11
15.
APPENDIX 2 - INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF RENEGADE EXPLORATION LIMITED .............................................. 12
Page 4
1.
QUALITY CONTROL
In accordance with the requirements of Australian Auditing Standards, we maintain strict quality control standards and comply with all relevant auditing
standards.
This engagement has been planned and performed by exercising professional judgement; and with professional scepticism recognising that
circumstances may exist that may cause the financial report to be materially misstated.
The audit has been undertaken by Senior auditor Raees Bhatti . It has then been reviewed by the Manager, Abhinay Datta, followed by the review of
the signing Director, Martin Michalik. Finally, a Quality Control Review has been undertaken by Kelvin Westaway prior to sign-off.
2.
INDEPENDENCE
As auditors of listed companies, we are required to comply with the independence requirements detailed in both the Corporations Act 2001 and
Australian Auditing Standards.
We will explicitly detail this to you for this audit with an independence declaration duly signed by the Audit Director.
All staff of our practice make explicit representations regarding their independence from all listed clients. These include representations that neither
they nor any related party has any investments in clients.
Our practice is regularly reviewed by the Australian Securities and Investment Commission (ASIC) which has confirmed our compliance with
requirements.
We would be grateful if you could advise us of any potential breaches of independence requirements that may become known to you as we are
required to ensure that we remain independent. To the best of our knowledge, there are none.
Page 5
3.
AUDITOR ROTATION
Auditor rotation is part of the auditor independence requirements in Part 2M.4 of the Corporations Act 2001. Under S324DA(1) of the Corporations
Act 2001, if an individual plays a significant role in the audit of a listed company for 5 successive financial years, the individual is not eligible to play
a significant role in the audit of the company of the subsequent financial year; unless the individual has not played a significant role in the audit of the
company.
For the year ended 30 June 2024, Martin Michalik was appointed the Engagement Director for the audit of Renegade Exploration Limited.
4.
MATERIALITY, ADJUSTED AND UNADJUSTED ERRORS
1.
MATERIALITY THRESHOLDS
From our audit of financial statements, we have judged the following thresholds to be appropriate. These have been reconsidered as required during
our audit, and initial judgements have been modified where appropriate.
Overall Materiality:
$180,000
Performance Materiality:
$135,000
Threshold of triviality:
$9,000
Overall materiality is the pervasive materiality level we use when considering the aggregate effect of potential unadjusted errors on the financial report.
In previous versions of auditing standards, it was called ‘planning materiality’.
Performance materiality is the materiality threshold we consider in relation to individual account balances. We have chosen to use a performance
materiality considerably lower than the overall materiality because, while the relatively high balance of cash and cash equivalents is relevant for
consideration of the total assets and net assets, other balances are much lower than this but still significant. However, if we consider a balance or
transaction to be qualitatively material, such as transactions with director-related parties, then we are only permitted to accept errors that are trivial.
The threshold of triviality is the threshold we use to consider whether it is an appropriate use of time to raise an unadjusted error based on the extreme
unlikeliness of such trivial errors having any relevance for the users of the financial report. If we find a potential error in a transaction or balance that
is below the threshold of triviality, we may show it to relevant staff and document it in our workpapers as trivial, but not consider it further.
Page 6
2.
SIGNIFICANT ADJUSTED AUDIT DIFFERENCES
None
3.
UNADJUSTED AUDIT DIFFERENCES
S no
Particulars
Debit
Credit
1
Impairment
101,094
Asset Held for sales
101,094
Difference between carrying value of asset held for sale Yukon project -per book at
30 June 2024 $ 1,101,094 less offer price $ 1,000,000 expected to receive from Fire
weed metals
2
Expense
15,695
Provision
15,695
Leave provision for Edward fry as at 30 June 2024 not provided for
Unresolved Issues:
None
Page 7
5.
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
As at 30 June 2024, Deferred exploration and evaluation expenditure totalled
$3,768,836 (refer to Note 15 of the financial report) and the Assets held for sale
related totalled $1,101,094 (refer to Note 12 of the financial report).
The carrying value of these assets is a key audit matter due to:
•
The cumulative significance of their balances (constitute 77% of the total assets
as at 30 June 2024);
•
The necessity to assess management’s application of the requirements of the
accounting standard Exploration for and Evaluation of Mineral Resources
(“AASB 6”), in light of any indicators of impairment that may be present and the
requirements of the accounting standard Non-current Assets Held for Sale and
Discontinued Operations (“AASB 5”); and
•
The assessment of management's significant judgements concerning the
capitalised exploration and evaluation expenditure.
Inter alia, our audit procedures included the following:
i.
Assessing the Group’s right to tenure over exploration assets by
corroborating the ownership of the relevant licenses for mineral
resources
to
government
registries
and
relevant
third-party
documentation.
ii.
Reviewing the directors’ assessment of the carrying value of the
capitalised exploration and evaluation costs and carrying value of Asset
held for Sale and ensuring the veracity of the data presented and
assessing management’s consideration of potential impairment
indicators in line with the requirements of AASB 6 and AASB 5
respectively.
iii.
Evaluating Group’s documents for consistency with the intentions for
continuing exploration and evaluation activities in areas of interest. The
documents we evaluated included:
▪
Minutes of meetings of the Board and management;
▪
Announcements made by the Company to the Australian Securities
Exchange; and
▪
Cash flow forecasts.
iv.
Considering the requirements of accounting standard AASB 6 and
reviewing the financial statements to ensure appropriate disclosures are
made; and
v.
Considering the requirements of accounting standard AASB 5 and
ensuring correct reclassification has been presented and adequate
disclosures made in the financial report.
Page 8
Key Audit Matters
How the matter was addressed in the audit
Valuation of Share-based payments
As disclosed in Note 24 of the financial report, the Company granted options to Directors,
employees and external third parties during the year. Share-based payments expense
recognized for the year ended 30 June 2024 amounted to $889,900. Share based
payments recognized as share issue cost for the year ended 30 June 2024 amounted to
$484,827.
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.
6.
OTHER SIGNIFICANT RISKS ADDRESSED
Significant risks were identified during the planning stage of the audit. No other significant risks were identified during the audit program that were
not identified at planning.
a. Significant Risk: Going Concern
Going concern was identified as a significant risk. A Material uncertainty paragraph related to going concern has been added to our audit report.
Disclosure also has been added in the notes to accounts to explain the uncertainty.
Work Performed:
-
Reviewed cash flow projections for the next 18 months ending 31 December 2025.
-
Reviewed the Group’s cash position at balance date relative to the Group’s administration and project development commitments over
the relevant period;
Page 9
-
Understood what forecast expenditure is committed and what could be considered discretionary;
-
Considered the liquidity of existing assets on the balance sheet; and
-
Reviewed the financial report to ensure adequate disclosure in the notes regarding the going concern basis of preparation.
As at 30 June 2024 the Group had cash and cash equivalents of $1,187,929. Operating cash outflow for the year ended 30 June 2024 was $852,909,
cash outflow from investing activities was $683,093. The Group’s ability to continue operations is dependent upon the Company’s ability to raise funds
from the capital markets and/or implementation of joint ventures agreements and sale of Yukon Project to fund ongoing exploration and working
capital requirements. As informed as regards the Yukon project , the company continues to negotiate a potential sale to other parties.
Audit Conclusion:
Based on the work performed, we are satisfied with the directors’ assessment of the company’s ability to continue as a going concern and therefore,
accept that the accounts are prepared on a going concern basis. However material uncertainty related to going concern added to audit report and
relevant disclosure is also has been added in the notes to accounts to explain the uncertainty
7.
CHANGES IN ACCOUNTING POLICY
Changes in accounting policies noted based on the new and revised accounting standards. New applicable standards have been disclosed in the
financial report however are not considered as having material effect to the financial statements.
8.
SUBSEQUENT EVENTS
We have carried out a subsequent events review up to 30 September 2024. We are satisfied that other than as disclosed in the Financial Report,
there are no subsequent events that would result in changes to the financial report or have a significant impact on the operations of the company.
This review will be completed up until the date of signing of the Audit Report.
9.
COMMITMENTS AND CONTINGENCIES
Page 10
Based on the audit work performed, all the commitments and contingencies as at 30 June 2024 have been properly disclosed in the Financial
Statements.
10.
SUMMARY OF CONTROL WEAKNESSES AND OTHER MATTERS
We have not identified any other material weaknesses during the audit. We do not intend to issue a formal management letter as we have not identified
significant weaknesses in the internal control systems.
11.
AUDIT OPINION
Based on the audit evidence obtained our audit of the management’s use of the going concern basis of preparation, we shall issue an unmodified
audit opinion in respect of the audit of the financial report of Renegade Exploration Limited and its subsidiaries for the year ended 30 June 2024.
No other matters of audit significance have been identified.
12.
S311 ISSUES
During the course of the audit, there have been no known or identified breaches of matters noted in S311 of the Corporations Act 2001 required to be
reported to ASIC.
13.
OUTSTANDING MATTERS
-
None
Page 11
14.
APPENDIX 1 – AUDITORS’ INDEPENDENCE DECLARATION
30th September 2024
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 2024, I declare that to the best of my knowledge and belief, there have been no contraventions of:
(i)
the auditor independence requirements of the Corporations Act 2001 in relation to the audit; and
(ii)
any applicable code of professional conduct in relation to the audit.
Yours sincerely
STANTONS INTERNATIONAL AUDIT AND CONSULTING PTY LTD
(An Authorised Audit Company)
Martin Michalik
Director
12
15.
APPENDIX 2 - INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF
RENEGADE EXPLORATION LIMITED
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 2024, the consolidated
statement of profit or loss and other comprehensive income, the consolidated statement of changes in equity and
the consolidated statement of cash flows for the year then ended, and notes to the financial statements, including
material accounting policy information, the consolidated entity disclosure statement and the directors' declaration.
In our opinion: the accompanying financial report of the Group is in accordance with the Corporations Act 2001,
including:
(i)
giving a true and fair view of the Group's financial position as at 30 June 2024 and of its financial
performance for the year 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.
Material Uncertainty Related to Going Concern
Without modifying our audit opinion, attention is drawn to the following matter:
As referred to in Note 3(a) to the financial statements, the financial statements have been prepared on a going
concern basis. For the year ended 30 June 2024, the Group incurred a loss before tax from continuing operations
of $1,123,871, had net cash outflow from operating activities of $852,909 and net cash outflow from investing
activities of $683,093.
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 and curtailing administration and operational cashflows. These events or conditions,
along with other matters as set forth in Note 3(a), indicate that a material uncertainty exists that may cast significant
doubt on the Group’s ability to continue as a going concern.
13
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
As at 30 June 2024, Deferred exploration and
evaluation expenditure totalled $3,768,836 (refer
to Note 15 of the financial report) and the Assets
held for sale related totalled $1,101,094 (refer to
Note 12 of the financial report).
The carrying value of these assets is a key audit
matter due to:
•
The cumulative significance of their
balances (constitute 77% of the total
assets as at 30 June 2024);
•
The necessity to assess management’s
application of the requirements of the
accounting standard Exploration for and
Evaluation of Mineral Resources (“AASB
6”), in light of any indicators of
impairment that may be present and the
requirements of the accounting standard
Non-current Assets Held for Sale and
Discontinued Operations (“AASB 5”);
and
•
The
assessment
of
management's
significant judgements concerning the
capitalised exploration and evaluation
expenditure
Inter alia, our audit procedures included the
following:
i.
Assessing the Group’s right to tenure over
exploration assets by corroborating the
ownership of the relevant licences for
mineral resources to government registries
and relevant third-party documentation;
ii.
Reviewing the directors’ assessment of the
carrying value of the capitalised exploration
and evaluation costs and carrying value of
Asset held for Sale and ensuring the
veracity
of
the
data
presented
and
assessing management’s consideration of
potential impairment indicators in line with
the requirements of AASB 6 and AASB 5
respectively.
iii.
Evaluating
Group’s
documents
for
consistency
with
the
intentions
for
continuing
exploration
and
evaluation
activities
in
areas
of
interest.
The
documents we evaluated included:
▪
Minutes of meetings of the Board and
management;
▪
Announcements
made
by
the
Company to the Australian Securities
Exchange; and
▪
Cash flow forecasts.
iv.
Considering the requirements of accounting
standard AASB 6 and reviewing the
financial statements to ensure appropriate
disclosures are made; and
v.
Considering the requirements of accounting
standard AASB 5 and ensuring correct
classification has been presented and
adequate disclosures made in the financial
report.
14
Valuation of Share-based payments
As disclosed in Note 24 of the financial report, the
Company granted options to Directors, employees
and external third parties during the year. Share-
based payments expense recognized for the year
ended 30 June 2024 amounted to $889,900. Share
based payments recognized as share issue cost for
the year ended 30 June 2024 amounted to $484,827.
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 2024 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
a)
the financial report that gives a true and fair view in accordance with Australian Accounting Standards and the
Corporations Act 2001 (other than the consolidated entity disclosure statement); and
b)
the consolidated entity disclosure statement that is true and correct in accordance with the Corporations Act 2001,
and for such internal control as the directors determine is necessary to enable the preparation of
i)
the financial report that gives a true and fair view and is free from material misstatement, whether due
to fraud or error; and
ii)
the consolidated entity disclosure statement that is true and correct and is free from misstatement
whether due to fraud and 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
15
assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with the
Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements can arise
from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected
to influence the economic decisions of users taken on the basis of this financial report.
As part of an audit in accordance with Australian Auditing Standards, we exercise professional judgement and
maintain professional scepticism throughout the audit. An audit involves performing procedures to obtain audit
evidence about the amounts and disclosures in the financial report.
The procedures selected depend on the auditor's judgement, including the assessment of the risks of material
misstatement of the financial report, whether due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the entity's preparation of the financial report that gives a true and fair view in
order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the entity's internal control.
The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as
fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of
accounting estimates made by the Directors, as well as evaluating the overall presentation of the financial report.
We conclude on the appropriateness of the Directors' use of the going concern basis of accounting and, based on
the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast
significant doubt on the Group’s ability to continue as a going concern. If we conclude that a material uncertainty
exists, we are required to draw attention in our auditor's report to the related disclosures in the financial report or, if
such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained
up to the date of our auditor’s report. However, future events or conditions may cause the Group to cease to continue
as a going concern.
We evaluate the overall presentation, structure and content of the financial report, including the disclosures, and
whether the financial report represents the underlying transactions and events in a manner that achieves fair
presentation.
We obtain sufficient appropriate audit evidence regarding the financial information of the entities or business
activities within the Group to express an opinion on the financial report. We are responsible for the direction,
supervision and performance of the Group audit. We remain solely responsible for our audit opinion.
We communicate with the Directors regarding, among other matters, the planned scope and timing of the audit and
significant audit findings, including any significant deficiencies in Internal control that we identify during our audit.
The Auditing Standards require that we comply with relevant ethical requirements relating to audit engagements.
We also provide the Directors with a statement that we have complied with relevant ethical requirements regarding
independence, and to communicate with them all relationships and other matters that may reasonably be thought to
bear on our independence, and where applicable, related safeguards.
From the matters communicated with the Directors, we determine those matters that were of most significance in the audit
of the financial report of the current period and are therefore key audit matters. We describe these matters in our auditor's
report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we
determine that a matter should not be communicated in our report because the adverse consequences of doing so would
reasonably be expected to outweigh the public interest benefits of such communication.
16
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 2024
In our opinion, the Remuneration Report of Renegade Exploration Limited for the year ended 30 June 2024 complies
with section 300A of the Corporations Act 2001.
Responsibilities
The directors of the Company are responsible for the preparation and presentation of the Remuneration Report in
accordance with section 300A of the Corporations Act 2001. Our responsibility is to express an opinion on the
Remuneration Report, based on our audit conducted in accordance with Australian Auditing Standards.
STANTONS INTERNATIONAL AUDIT AND CONSULTING PTY LTD
(An Authorised Audit Company)
Martin Michalik
Director
West Perth, Western Australia
30 September 2024
Liability limited by a scheme approved under Professional Standards Legislation
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
Stantons Is a member of the Russell
Bedford International network of firms
30 September 2024
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 2024, I declare that to the best of my knowledge and belief, there have been no
contraventions of:
(i)
the auditor independence requirements of the Corporations Act 2001 in relation to the audit; and
(ii)
any applicable code of professional conduct in relation to the audit.
Yours sincerely
STANTONS INTERNATIONAL AUDIT AND CONSULTING PTY LTD
Martin Michalik
Director
Renegade Exploration Limited
Shareholder Information
30 June 2024
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 20 September 2024.
Substantial shareholders
Shareholder name
Number of
shares
% IC
Outland Investments Pty Ltd
-
50,500 3.95%
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.
Distribution of equity security holders
Analysis of numbers of listed equity security holders by size of holding:
Holding
Number of
Shareholders
Total units
% Issued
Share Capital
1 - 1,000
46
6,994
0.00%
1,001 - 5,000
12
33,344
0.00%
5,001 - 10,000
15
131,173
0.01%
10,001 - 100,000
361
22,908,802
1.79%
100,000 and over
696
1,256,973,112
98.20%
1,130
1,280,053,425
100.00%
There were 268 shareholders holding less than a marketable parcel of ordinary shares.
92
Renegade Exploration Limited
Shareholder Information
30 June 2024
Top Twenty Shareholders
Position
Holder Name
Holding
%
1.
OUTLAND INVESTMENTS PTY LTD
50,500,000
3.95%
2.
SIERRA WHISKEY PTY LIMITED
49,600,000
3.87%
3.
JCR INVESTMENTS CO P/L
43,971,147
3.44%
4.
ROMFORD CONSULTING PTY LTD
40,000,000
3.12%
5.
SOVEREIGN METALS LIMITED
35,000,000
2.73%
6.
MR PETER PHILLIP KALKANDIS
32,000,000
2.50%
7.
MS PHAROTH SAN & MR KADEN SAN
27,853,909
2.18%
8.
DIMENSIONAL HOLDINGS PTY LTD
23,700,000
1.85%
MR MICHAEL ZOLLO
23,700,000
1.85%
9.
MR MARK TRENT
20,000,000
1.56%
10.
MR MICHAEL DAVIES
16,608,171
1.30%
11.
WABI-SABI TRADING COMPANY PTY LTD
13,912,074
1.09%
12.
MR ANTON WASYL MAKARYN & MRS MELANIE FRANCES MAKARYN
13,000,000
1.02%
13.
MR ADRIAN ALEXANDER VENUTI
12,000,000
0.94%
14.
KHE SANH PTY LTD
11,000,000
0.86%
15.
ARK SECURITIES & INVESTMENTS PTY LTD
10,014,285
0.78%
16.
LOFTUS GROUP LIMITED
10,007,937
0.78%
17.
MR JOSHUA GALLAGHER & MRS OLIVIA GALLAGHER
10,000,000
0.78%
SSRO ENTERPRISES PTY LTD
10,000,000
0.78%
DIMENSIONAL HOLDINGS PTY LTD
10,000,000
0.78%
RIDGEFIELD CAPITAL ASSET MANAGEMENT LP
10,000,000
0.78%
MR EDWARD SCOTT KENNEDY FRY
10,000,000
0.78%
GEISHA POSSUM HOLDINGS PTY LTD
10,000,000
0.78%
18.
ZEBINA MINERALS PTY LTD
9,500,000
0.74%
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED - A/C 2
9,000,000
0.70%
19.
OCEAN REEF HOLDINGS PTY LTD
9,000,000
0.70%
MR SHAN WALDON
9,000,000
0.70%
MR GARY DEAN SHAW
9,000,000
0.70%
20.
MR ANTHONY NEWMAN
8,072,760
0.63%
Total
546,440,283
100%
Total issued capital - selected security class(es)
1,280,053,425
100%
Unissued equity securities
Class
Number of
securities
Number
of holders
Holders with
more than 20%
Performance Rights
40,000,000
2
Azalea Family Holdings Pty Ltd (50%)
Peter Smith(50%)
Options exercisable at $.015 on or before
30/06/2025
25,0000,000
4
Geisha Possum Holdings Pty Ltd (71%)
Romford Consulting Pty Ltd (22%)
Options exercisable at $.025 on or before
30/06/2026
15,461,233
4
Geisha Possum Holdings Pty Ltd (71%)
Romford Consulting Pty Ltd (22%)
Options exercisable at $.025 on or before
30/06/2027
15,461,233
5
Romford Consulting Pty Ltd (43%)
Sierra Whiskey Pty Ltd (21%)
Options exercisable at $.015 on or before
28/06/2027
70,000,000
2
Zenis Nominees Pty Ltd (50%)
Harshell Investments Pty Ltd (50%)
Securities exchange
The Company is listed on the Australian Securities Exchange.
93