ASX Release
30 September 2022
Annual Report 2022
Attached is the Annual Report for the year ended 30 June 2022 of Resources & Energy
Group Limited.
Authorised for release by the Board.
Warren Kember
Company Secretary
Investor enquiries:
Richard Poole
Executive Director
E: rjpoole@rezgroup.com.au
P: +61 2 9227 8900
Level 33, 52 Martin Place Sydney NSW 2000
GPO Box 2537, Sydney NSW 2001
T: +612 9227 8900
E: communications@rezgroup.com.au
W: www.rezgroup.com.au
1
ANNUAL REPORT
30 June 2022
Business Objective
Contents
Corporate Directory
Directors' Report
Mineral Resources & Ore Reserves
Financial Report
Consolidated Statement of Profit or Loss and
Other Comprehensive Income
Consolidated Statement of Financial Position
Consolidated Statement of Cash Flows
Consolidated Statement of Changes in Equity
Notes to the Financial Statements
Directors' Declaration
Auditor's Independence Declaration
Independent Auditor's Report
Security Holders' Information
2
3-12
13
14
15
16
17
18-44
45
46
47-50
51-52
Resources and Energy Group Limited (ASX:REZ) is
an independent, ASX-listed mineral resources
explorer, developer and producer, holding mining
leases in Western Australia and Queensland. REZ
aims to develop a portfolio of mining tenements
through to production. REZ is currently focused on
the development of the flagship East Menzies Gold
Project (EMGP) 130km north of Kalgoorlie in
Western Australia. EMGP represents a +100km2
package of contiguous mining,
exploration, and prospecting licenses, which are
located within a significant orogenic lode gold
province.
In Queensland, the company has a 12km2 Mineral
Development Licence over the Mount Mackenzie
Mineral Resource and retains a further 15km2 as
an Exploration Permit. These Development and
Auburn
Exploration Licences are in the Connors
Arc and are prospective for high, intermediate,
and
‐
Cover photo
Mining operations at Granny Venn in the East
Menzies Gold Project
Annual Report
June 2022
1
Corporate Directory
Directors
Gavin Rezos
Richard Poole
J Daniel Moore
Company Secretary
Warren Kember
Share Registry
Automic Group
Level 5, 126 Phillip St,
Sydney, NSW 2000
Telephone 1300 288 664/(02) 9698 5414
Email: hello@automicgroup.com.au
Auditor
RSM Australia Partners
Level 13, 60 Castlereagh Street
Sydney, NSW 2000
Stock Exchange Listing
Resources & Energy Group Limited's fully
paid ordinary shares are listed on the
Australian Securities Exchange (ASX:REZ)
Registered Office
Level 33 Colonial Centre
52 Martin Place
Sydney, NSW 2000
Telephone +(612) 9227 8900
Facsimile +(612) 9227 8901
ABN: 12 110 005 822
Web site: www.rezgroup.com.au
Solicitor
Steinepreis Paganin
Level 4, 16 Milligan Street
Perth, WA 6000
Bankers
National Australia Bank
255 George Street
Sydney, NSW 2000
Annual Report
June 2022
2
Directors' Report
The directors present their report together with the annual Financial Report of Resources & Energy Group
Limited (Company) and its controlled entities (the Group or consolidated entity) for the year ended 30 June
2022 and the Independent Audit Report thereon.
Directors
The details of directors of the Company at any time during or since the end of the financial year to the date of
this report are set out below.
Names, qualifications, experience and special responsibilities
Mr Gavin Rezos
Bachelor of Laws, LLB, BA
Chairman, non-executive director, independent
Appointed: 22 April 2016
Completed years of service: 6 years
Mr Rezos has extensive Australian and international investment banking experience and is a former investment
banking Director of HSBC Group with regional roles during his career in London, Sydney and Dubai. Mr Rezos
has held CEO or directorship roles of companies in the technology and resources sectors in Australia, the UK
and the US and was formerly Chairman of Alexium International Group Limited, a non-executive director Iluka
Resources Limited and of Rowing Australia. He is currently Chairman of Vulcan Energy Resources Limited and
principal of Viaticus Capital.
Non-executive director positions held during the past 3 years: Vulcan Energy Resources Limited.
Mr Richard Poole
Bachelor of Laws, Bachelor of Commerce, LLB, ASIA
Director and Chief Executive Officer, non-independent
Appointed: 12 July 2004
Completed years of service: 17 years
Mr Poole commenced his career as a lawyer specialising in mergers and acquisitions. He left the law in 1990 to
build a research and development operation with operations in Japan, USA and Australia and added a
manufacturing company in China in 1994. He successfully built the R&D company from its early stages to a
public listed vehicle raising the necessary capital up to his departure in 1999. Since 1999 he has continued his
involvement in fund raising and the development of companies. He is a principal of Arthur Phillip Pty Limited a
corporate advisory firm providing investment services and he is an experienced corporate advisor and
entrepreneur.
Mr J Daniel Moore
Director, independent
Appointed: 14 July 2021
Completed years of service: 1 year
Mr Moore has extensive experience working with emerging companies in natural resources. He has been
involved with Resource & Energy Group’s East Menzies Goldfields since 2013 when it was first listed on the ASX.
Daniel is currently a Director of Marquee Resources (ASX: MQR) and a founder of Koch Metals and Centenario
Lithium. Previously he held Non-Executive Director roles at iCollege (ASX: ICT), Coronado Resources now Race
Oncology (ASX: RAC) and Stratum Metals now Locality Planning Energy (ASX: LPE).
Annual Report
June 2022
3
Directors' Report
Company Secretary
Mr Warren Kember
Bachelor of Commerce, MBA, Dip Applied Finance
Chief Financial Officer and Company Secretary
Completed years of service: 6 years
Mr Kember is the Chief Financial Officer and Company Secretary of the Group and is responsible for directing
all financial, legal and risk management. Mr Kember has significant experience in executive finance having
served as Chief Financial Officer for a number of ASX listed companies in the construction, mining and
technology sectors.
Interests in the shares and options of the company and related bodies corporate
As at the date of this report, the interests of the directors in the shares and options of the Company were:
Mr Gavin Rezos
Mr Richard Poole
Mr J Daniel Moore
Number of
Ordinary
Shares
Number of
Options over
Ordinary
Shares
15,258,700 8,000,000
8,000,000
67,987,302
12,000,000 5,000,000
Directors' meetings
The number of meetings of directors (including meetings of committees of directors) held during the financial
year and the number of meetings attended by each director were as follows:
Mr Gavin Rezos
Mr Richard Poole
Mr J Daniel Moore
Dividends
Directors' meetings
Eligible to
attend
8
8
8
Attended
8
8
8
No dividends have been paid or declared since the end of the previous financial year, nor do the directors
recommend the declaration of a dividend (2020: Nil).
Principal Activities
The principal activities of the Group are to explore and develop suitable mineral deposits, including gold and
silver.
The Group had 3 employees at 30 June 2022 (2021: 4 employees).
Annual Report
June 2022
4
Directors' Report
Operating Results for the Year
Financial results
The profit after tax of the Group for the year ended 30 June 2022 was $162,157 (2021: Loss $1,472,288). The
result included other income of $3,353,130 being the Group's 50% share of the net operating profit from an
agreement with a contracting entity for the the extraction and sale of gold from the East Menzies Project.
Mount Mackenzie
The Mount Mackenzie Gold Project is located 150km north west of Rockhampton, Queensland. The project
includes a 28.4km2 tenement package held by the Group.
Located within the Connors Magmatic Arc of the New England Fold Belt region, the broader area has produced
over 50 million ounces of gold and large amounts of copper and silver. The region is acknowledged as the
largest high sulphuration epithermal systems in Eastern Australia, comparable with those associated with major
gold-copper porphyry systems around the world.
During the financial year further exploration work resulted in the upgrading and expanding the JORC Resource
to 3.42Mt at 1.18gpt gold and 9.0gpt silver for a total of 129 oz gold and 862 oz silver. The Group released an
updated scoping study confirming a potential low-cost gold project, generating 43,000 ounces of gold with a
possible $54 million in earnings before interest, tax, depreciation and amortisation from a $13 million capital
investment.
The scoping study investigated a range of production and processing options and identifies a 300,000 tonnes
per annum open cut development with an onsite gold plant as the most appropriate case for the progression of
the project to Feasibility Study. The processing plant is proposed to be a low-cost modular crushing, grinding
and CIL circuit.
An evaluation of MMGP indicates it would be a technically low risk operation supported by strong economic
performance. The scoping study has also identified opportunity for a staged increase in plant capacity to
500,000 tonnes per annum, and introducing a flotation circuit for recovery of a gold concentrate from the
treatment of primary ore. This option requires further investigation but has potential to recover a larger part of
the primary resource than currently envisaged.
A mineral development licence has been formally granted over the entire MMGP area, which encompasses the
current project area and all land required for its development.
Planning work associated with a program of diamond and reverse circulation drilling at Mount Mackenzie has
also been prepared to test weathering limits and the extent of primary mineralisation beneath the North Knoll
and SW Slopes prospects. Exploration planning associated with testing mineralisation associated with the Clive
Creek prospects (Quinine Gully and Sphinx) has also been completed.
East Menzies
The East Menzies Gold Project is located 130km north of Kalgoorlie, with a collective surface area of 103km2
and consists of over 50 tenements, a mixture of mining leases, mining lease applications, prospecting leases
and prospecting lease applications. These mining and exploration instruments are host to a 20km continuous
strike of a mineralised Greenstone Belt, including the Springfield Venn Gold Corridor, and the Goodenough
Syncline.
Since acquisition, a total of 194 soil samples have been collected from a number of tenements for mobile metal
ion analysis which were subject to assay analysis. Work on compiling and evaluating historical exploration data
has commenced, and the Company is in the process of assembling a complete data base representing all
historical and recent exploration data. The database includes data from 13,895 holes, 17,090 geochemical
samples and 97,502 assay intervals.
Annual Report
June 2022
5
Directors' Report
An analysis of the drilling data acquired has highlighted the overall shallow tenor of previous exploration. This
historical approach to drilling shallow drill holes has highlighted areas of near surface mineralisation, however,
there still remains significant exploration potential for further discoveries at depth and within areas that have
yet to be drill tested. A review of the open file multi element geochemical data as well as information contained
within the project databases, has revealed large coincident gold, arsenic, lead and sulphur anomalies within the
Menzies tenement package. Many of these have never been followed up by modern drilling. The geochemical
samples when incorporated into the database show areas that have known gold deposits, such as Granny Venn-
Caesar which has a very consistent and focused gold-in-soil response.
All historical projects within the Menzies region were imported into a 3D geology program and their data
validated to identify missing data and data errors. The projects include Granny Venn, Caesar, Jenny Venn,
Goodenough, Maranoa and Gigante Grande as well as many other smaller prospects. Each of the projects
have had drilling planned to extend the known mineralisation down dip and or along strike.
During the financial year the Granny Venn Cutback venture (GVCB) was completed. The GVCB was the first
mining operations to take place at the Granny Venn site since 1998. The production target forecast by the
Company was exceeded with the recovery of 126kt of ore with an estimated head grade of 2.37gt/au for 9,532
oz being recovered. In late June the Company received its share of the net operating profit from the project,
and a total of $3.35 million was recorded as other income.
Tenements
Tenements held by the Group as of 30 June 2022 were as follows.
State
Project
Number
Status
Queensland
Queensland
Western Australia
Western Australia
Western Australia
Western Australia
Western Australia
Western Australia
Western Australia
Western Australia
Western Australia
Western Australia
Western Australia
Western Australia
Western Australia
Western Australia
Western Australia
Western Australia
Western Australia
Western Australia
Western Australia
Western Australia
Mt Mackenzie
Mt Mackenzie
Menzies
Menzies
Menzies
Menzies
Menzies
Menzies
Menzies
Menzies
Menzies
Menzies
Menzies
Menzies
Menzies
Menzies
Menzies
Menzies
Menzies
Menzies
Menzies
Menzies
MDL2008
EPM10006
M29/0141
M29/0189
M29/0427
L29/0061
E29/2979
P29/2225
P29/2270
P29/2391
P29/2395
P29/2408
P29/2409
P29/2455
P29/2456
P29/2457
P29/2458
P29/2459
P29/2460
P29/2461
P29/2469
P29/2470
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
REZ
beneficial
ownership
Expiry
100.00%
31 Oct 2024
100.00% 28 Mar 2023
31 Jul 2033
100.00%
15 Oct 2040
100.00%
11 Feb 2040
100.00%
100.00% 31 March 2041
23 Feb 2027
100.00%
4 Sep 20201
100.00%
22 Apr 20211
100.00%
100.00%
2 April 2025
100.00% 19 April 2025
2 July 2025
100.00%
100.00% 28 Sept 2025
31 Jan 2023
100.00%
31 Jan 2023
100.00%
31 Jan 2023
100.00%
31 Jan 2023
100.00%
31 Jan 2023
100.00%
31 Jan 2023
100.00%
100.00%
31 Jan 2023
100.00% 24 Mar 2024
16 Jul 2023
100.00%
Annual Report
June 2022
6
Directors' Report
State
Project
Number
Status
Western Australia
Western Australia
Western Australia
Western Australia
Western Australia
Western Australia
Western Australia
Western Australia
Western Australia
Western Australia
Western Australia
Western Australia
Western Australia
Western Australia
Western Australia
Western Australia
Western Australia
Western Australia
Western Australia
Western Australia
Western Australia
Western Australia
Western Australia
Western Australia
Western Australia
Western Australia
Western Australia
Western Australia
Western Australia
Western Australia
Western Australia
Western Australia
Western Australia
Western Australia
Western Australia
Western Australia
Menzies
Menzies
Menzies
Menzies
Menzies
Menzies
Menzies
Menzies
Menzies
Menzies
Menzies
Menzies
Menzies
Menzies
Menzies
Menzies
Menzies
Menzies
Menzies
Menzies
Menzies
Menzies
Menzies
Menzies
Menzies
Menzies
Menzies
Menzies
Menzies
Menzies
Menzies
Menzies
Menzies
Menzies
Menzies
Menzies
P29/2471
P29/2472
P29/2473
P29/2474
P29/2492
P29/2494
P29/2496
P29/2497
P29/2500
P29/2528
P29/2553
P29/2554
P29/2555
P29/2556
P29/2557
P29/2558
P29/2563
P29/2564
P29/2565
P29/2566
P29/2567
P29/2568
P29/2595
P29/2596
P29/2599
P29/2600
P29/2601
P29/2602
P29/2604
P29/2619
P29/2620
P29/2621
P29/2622
P29/2623
P29/2624
P29/2625
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Expiry
REZ
beneficial
ownership
100.00%
14 Jun 2024
100.00% 25 Mar 2024
100.00% 25 Mar 2024
100.00%
12 Mar 2024
14 Jun 2024
100.00%
100.00%
14 Jun 2024
100.00% 25 Mar 2024
100.00% 25 Mar 2024
100.00% 25 Mar 2024
24 Oct 2023
100.00%
15 Nov 2024
100.00%
15 Nov 2024
100.00%
15 Nov 2024
100.00%
100.00%
15 Nov 2024
15 Nov 2024
100.00%
15 Nov 2024
100.00%
17 Nov 2024
100.00%
16 Nov 2024
100.00%
16 Nov 2024
100.00%
16 Nov 2024
100.00%
100.00%
16 Nov 2024
16 Nov 2024
100.00%
3 Nov 2025
100.00%
3 Nov 2025
100.00%
100.00%
15 Nov 2025
100.00% 18 May 2025
100.00% 18 May 2025
100.00% 18 May 2025
100.00% 18 May 2025
4 Nov 2025
100.00%
4 Nov 2025
100.00%
4 Nov 2025
100.00%
4 Nov 2025
100.00%
4 Nov 2025
100.00%
4 Nov 2025
100.00%
4 Nov 2025
100.00%
Note 1: Mining licence application in progress, propsecting licence remains in place until granted
Annual Report
June 2022
7
Directors' Report
Significant Changes in State of Affairs
During the financial year the following significant changes occurred.
During the reporting period the Company raised additional capital via an issue of ordinary shares of 68,125,000
ordinary shares at 4.0 cents each to raise $2,725,000.
Significant Events After Balance Date
There have been no significant events occurring after the balance date which may affect either the Group's
operations, results of those operations or the Group's state of affairs other than the purchase of additional
tenements in the Menzies, Western Australia region from a director related entity for $75,000.
Likely Development and Expected Results
Apart from the matters referred to above in the Operating Results for the year, other likely developments in the
operations of the Group and the expected results of those operations in subsequent financials years have not
been included in this report because the directors believe this could result in unreasonable prejudice to the
Group.
Environmental Regulation and Performance
Exploration and development activities are subject to State and Federal laws and regulations. The Group has a
policy of complying with its environmental performance obligations as a minimum, and during the reporting
period, there has been no known breach of the environment regulations. The Group is committed to ensuring
the activities of its business are conducted in a way so as to minimise adverse impacts on the environment and
local communities.
Unissued Shares Under Securities
There were 91,000,056 share options on issue as at 30 June 2022 that can convert to ordinary shares in the
ratio of one fully paid ordinary share for each share option. No share options have been issued subsequent to
the end of the financial year to the date of this report.
Option class
Class L
Vesting conditions
Vested
Grant date
18/12/2017
Expiry date
15/12/2022
Exercise
price
Number of
share options
$0.140 1,000,000
Class M
Class N
Class P
Class Q
Class R
Class S
Class T
Class U
Vested
Vested
Vested
Vested
Vested
Vested
Vested
Vested
18/12/2017
15/12/2022
$0.140 1,000,000
11/10/2019
11/10/2022
$0.080 15,000,000
14/10/2020
30/09/2025
$0.050 15,000,000
2/11/2020
31/10/2022
$0.200 11,000,056
15/07/2021
31/08/2026
$0.080 8,000,000
14/09/2021
31/08/2026
$0.080 21,000,000
15/09/2021
31/08/2026
$0.080 11,000,000
27/10/2021
31/08/2026
$0.080 8,000,000
Share options on issue at 30 June 2022
91,000,056
No shares were issued during the financial year as a result of the exercise of options
Annual Report
June 2022
8
Directors' Report
Indemnification and Insurance of Officers and Directors
REZ’s constitution indemnifies, to the extent permitted by law, officers of the Group when acting in their
capacity in respect of:
• liability to third parties (other than related entities) when acting in good faith; and
• costs and expenses of successfully defending legal proceedings and ancillary matters.
The Directors and the Company Secretary named earlier in this report have the benefit of the indemnity
together with any other person in or who takes part in the management of the Group.
During the year REZ did not pay any premiums of insurance in respect of contracts insuring Directors, Company
Secretary or other members of management against liabilities incurred in their capacity as Director or officers
of the Group.
Rounding
The amounts contained in this report and in the financial report have been rounded to the nearest $1,000
(where rounding is applicable) under the option available to the company under ASIC Class Order 98/0100. The
company is an entity to which the Class Order applies.
Proceedings on Behalf of the Company
No person has applied for leave of court to bring proceedings on behalf of the company or intervene in any
proceedings to which the company is party for the purpose of taking responsibility for the company for all or
any part of those proceedings. The Company and Group were not party to any such proceedings during the
financial year.
Auditor Independence
A copy of the external auditor's declaration under Section 370C of the Corporations Act in relation to the audit
for the financial year is attached to the Financial Statements.
Non-audit services
No non-audit services were provided during the current year by the auditor.
Remuneration Report (Audited)
The remuneration report, which has been audited, outlines the key management personnel remuneration
arrangements for the consolidated entity, in accordance with the requirements of the Corporations Act 2001
and its Regulations. For the purposes of this report Key Management Personnel (KMP) of the Group are defined
as those persons having authority and responsibility for planning, directing and controlling the major activities
of the Group, including executive and non-executive directors.
During the financial year ended 30 June 2022, KMP consisted of:
Mr Gavin Rezos
Mr Richard Poole
Mr J Daniel Moore
Mr Warren Kember
Non-executive director and Chairman
Executive Director
Non-executive director
Chief Financial Officer and Company Secretary
Annual Report
June 2022
9
Directors' Report
Principles used to determine the nature and amount of remuneration
In order for the Company and Group to prosper and enhance shareholder value, the Group must be able to
attract and retain the highest calibre of executives. At this stage of the Group's development, a framework has
not been developed that links performance and KMP remuneration. The responsibilities of the Remuneration
Committee, which have been assumed by the full Board, include reviewing the remuneration of KMP and
determining the nature and amount of emoluments of KMP on an annual basis. In conducting this review
reference is made to market and industry conditions. Remuneration packages, can consist of base salary,
fringe benefits, incentive schemes (including performance related bonuses), superannuation, and entitlements
upon retirement or termination, are reviewed with due regard to performance and other relevant factors.
Where appropriate, share-based remuneration is provided to encourage KMP to focus on improving
shareholder value and also to reduce cash costs during the Group's development phase.
The aggregate amount of non-executive director fees is limited to $200,000 per annum as per a resolution of
shareholders. For further information, please refer to our corporate governance plan and annual governance
statement on our web site at www.rezgroup.com.au.
Short-term incentives and long-term incentives
Due to the current size of the Group and the extent of its operations limited short-term incentives, such as
performance based bonuses or longer term incentives, were provided to KMP other than as shown below.
Details of remuneration
Amounts paid or owing to KMP during the financial year ended 30 June 2022 are set out below.
Year ended 30 June 2022
Short-term
benefits
Post
employment
Share-based
payments
Salary & fees Superannuation
$
$
Equity settled
$
Total
$
Directors
Mr Gavin Rezos
Mr Richard Poole (i)
Mr J Daniel Moore
Management
50,800
33,000
154,550
Mr Warren Kember (i)
-
238,350
-
-
-
-
-
148,800
148,800
93,000
199,600
181,800
247,550
83,600
474,200
83,600
712,550
Percentage of
renumeration
in form of
share based
payments
%
75%
82%
38%
100%
67%
(i) Remuneration forms part of the fees charged by a director related entity. Details of the nature of the
engagement and the amount of fees charged are provided in Note 20 of the financial statements.
Amounts paid or owing to KMP during the financial year ended 30 June 2021 are set out below.
Annual Report
June 2022
10
Directors' Report
Year ended 30 June 2021
Short-term
benefits
Post
employment
Share-based
payments
Total
Salary & fees Superannuation
$
$
Equity settled
$
$
Directors
Mr Gavin Rezos
Mr Richard Poole
Ms Virginia Bruce
Management
Mr Warren Kember (i)
48,000
33,000
33,000
-
114,000
-
-
-
-
-
-
-
-
-
-
48,000
33,000
33,000
-
114,000
Percentage of
renumeration
in form of
share based
payments
%
0%
0%
0%
0%
0%
(i) Remuneration forms part of the fees charged by a director related entity. Details of the nature of the
engagement and the amount of fees charged are provided in Note of the financial statements.
Service agreements
The non-executive directors did not enter into any service agreements with the Group. The responsibilities of the
Nomination Committee, which have been assumed by the full board, includes reviewing the appointment and
retirement of Non-Executive Directors on a case by case basis. Currently all directors are required to be re-
elected at least every three years and at least one-third of directors must retire at each Annual General
Meeting.
Share options
The terms and conditions of each grant of options over ordinary shares affecting remuneration of KMP in the
prior, current or future financial years are as follows:
Option class/Holder
Class F Mr Gavin Rezos
Class G Mr Gavin Rezos
Class I Mr Christian Price
Class J Mr Christian Price
Class L Mr Christian Price
Class M Mr Christian Price
Class S Mr Gavin Rezos
Class S Mr Richard Poole
Class S Mr J Daniel Moore
Class T Mr Warren Kember
Number of share
options
5,000,000
2,500,000
250,000
250,000
1,000,000
1,000,000
8,000,000
8,000,000
5,000,000
4,000,000
35,000,000
Grant date
20/06/2016
20/06/2016
6/12/2016
6/12/2016
18/12/2017
18/12/2017
14/09/2021
14/09/2021
14/09/2021
15/09/2021
Expiry date
31/03/2021
31/03/2021
31/03/2021
31/03/2021
15/12/2022
15/12/2022
31/08/2026
31/08/2026
31/08/2026
31/08/2026
Exercise
price
$0.12
$0.12
$0.12
$0.14
$0.14
$0.14
$0.08
$0.08
$0.08
$0.08
Fair value per
option at
grant date
$0.03
$0.03
$0.03
$0.02
$0.03
$0.03
$0.02
$0.02
$0.02
$0.02
Share options carry no entitlement to dividends or right to vote. No share options were exercised, cancelled or
lapsed during the current or prior financial year. No person entitled to exercise share options had or has any
right by virtue of the options to participate in any share issue of any other body corporate.
Annual Report
June 2022
11
Directors' Report
Movements in Shares held by Key Management Personnel
2022
Balance at the
start of the year
Granted as
compensation
Net other
change
Mr Gavin Rezos
Mr Richard Poole
Mr J Daniel Moore
Mr Warren Kember
14,603,700
67,987,302
12,000,000
625,000
-
-
-
-
655,000
-
-
-
Movements in Share Options held by Key Management Personnel
2022
Balance at the
start of the year
Granted as
compensation
Net other
change
Mr Gavin Rezos
Mr Richard Poole
Mr J Daniel Moore
Mr Warren Kember
-
-
-
-
8,000,000
8,000,000
5,000,000
4,000,000
-
-
-
-
Balance at
the end of
the year
15,258,700
67,987,302
12,000,000
625,000
Balance at
the end of
the year
8,000,000
8,000,000
5,000,000
4,000,000
End of remuneration report
Signed in accordance with a resolution of the directors.
Mr Gavin Rezos, Chairman
Sydney, 30 September 2022
Annual Report
June 2022
12
Mineral Resources and Ore Reserves
Group mineral resources as at 30 June 2022 were estimated at 4.4 million tonnes at 1.37g/t Au for 183,000 ounces AU and 862,000 ounces AG. Mineral resource figures
have been prepared in accordance with the requirements of 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results'.
Mineral Resources
Project
Type
Cut off
(g/t)
30 June 2022
Mount Mackenzie
Open Cut
Tonnes
(kt)
Indicated
Gold
metal
(koz)
Gold
grade
(g/t)
Silver
grade
(g/t)
Silver
metal
(koz)
Tonnes
(kt)
Inferred
Gold
metal
(koz)
Gold
grade
(g/t)
Silver
grade
(g/t)
Silver
metal
(koz)
Tonnes
(kt)
Gold
grade
(g/t)
Total
Gold
metal
(koz)
Silver
grade
(g/t)
Silver
metal
(koz)
Oxide
Primary
Menzies
Goodenough
Granny Venn
Maranoa
30 June 2021
0.35
0.55
500
1,200
1.09
1.25
18.0
48.0
8.0
13.0
136
482
700
1,030
0.96
1.28
21.0
42.0
4.0
5.0
87
157
1,200
2,230
1.01
1.26
39.0
90.0
6.0
9.0
223
639
Open Cut
Open Cut
Open Cut
1.00
1.00
634
1.84
38.0
82
41
46
1.99
2.14
5.70
5.2
2.9
8.0
716
41
46
1.86
2.14
5.70
43.0
2.9
8.0
2,334
1.38
104.0
7.4
618
1,899
1.32
79.1
3.7
244
4,233
1.35
182.9
5.7
862
Mount Mackenzie
Open Cut
Oxide
Primary
Menzies
Goodenough
Granny Venn
Maranoa
0.35
0.55
500
1,200
Open Cut
Open Cut
Open Cut
1
1
1
634
134
1.09
1.25
1.84
2.03
18.0
48.0
38.0
9.0
8.0
13.0
136
482
700
1,030
0.96
1.28
21.0
42.0
4.0
5.0
87
157
1,200
2,230
1.01
1.26
82.0
41.0
46.0
1.99
2.14
5.7
5.2
2.9
8.0
716
175
46
1.86
2.06
5.70
6.0
9.0
223
639
39.0
90.0
43.0
12.0
8.0
2,468
1.41
113.000
6.8
618
1,899
1.32
79.1
3.7
244
4,367
1.37
192.0
5.4
862
Competent Persons Statement and Consent
The information in this release that relates to mineral resources is based on and fairly represents information compiled by Mr. Michael Johnstone and Mr Todd Axford and who are members of the Australasian Institute of Mining and
Metallurgy, and Principal Consultants for Minerva Geological Services (MGS) and Geko
management, advice and guidance to the company. Both Mr. Axford and Mr Johnstone have sufficient technical experience that is relevant to the reporting of exploration results to qualify as a competent person as defined in the 2012
Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr. Axford and Mr Johnstone consent to the inclusion in this release of the matters based on their information in the form and
context in which it appears.
This presentation contains information provided in releases made by the Company to the ASX on 26 February 2016, 21 June 2016 and 19 May 2020 concerning the Mt Mackenzie Resource and 11 June 2020, 3 November 2020, 14 January
2021, 22 March 2021 and 4 May 2021 concerning Menzies. The Company is not aware of any new information or data that materially affects the information included in previous ASX announcements and that all material assumptions
and technical parameters underpinning the estimates in the announcement continue to apply and have not materially changed.
Co (GKC) respectively. MGS and GKC have been contracted by Resources & Energy Group Limited (the Company) to provide exploration
‐
Annual Report
June 2022
13
Consolidated Statement of Profit or Loss
and Other Comprehensive Income
For the year ended 30 June 2022
Continuing operations
Other income
Corporate and other administration costs
Director fees
Exploration and evaluation costs expensed
Employee benefits expense
Finance costs
Depreciation
Amortisation of exploration and evaluation costs
Share-based payments expense
Insurance
Other expenses
Profit/(loss) before income tax
Income tax benefit
Profit/(loss) after tax from continuing operations
Other comprehensive income
Notes
2022
$
2021
$
4(a)
3,353,131
-
4(b)
4(c)
10
17
5
(348,070)
(247,353)
(221,614)
(86,023)
6
(1,334)
(1,236,892)
(828,905)
(45,383)
(175,407)
(639,207)
(118,800)
(338,995)
(55,184)
(5,617)
(1,040)
-
(139,966)
(39,325)
(134,153)
162,157
-
162,157
(1,472,288)
-
(1,472,288)
-
-
Total comprehensive income/(loss) for the year
162,157
(1,472,288)
Total comprehensive income/(loss) is attributable to:
- shareholders of Resource & Energy Group Limited
- non- controlling interests
163,790
(1,634)
162,157
(1,472,191)
(97)
(1,472,288)
Earnings/(loss) per share (cents per share) – basic
Earnings/(loss) per share (cents per share) – diluted
15
15
0.03
0.03
(0.35)
(0.35)
This consolidated statement of profit or loss and other comprehensive income should be read in conjunction
with the notes to the financial statements.
Annual Report
June 2022
14
Consolidated Statement of Financial Position
As at 30 June 2022
Assets
Current assets
Cash and cash equivalents
Trade and other receivables
Other assets
Total current assets
Non-current Assets
Property, plant and equipment
Exploration and evaluation assets
Total non-current assets
Total assets
Liabilities
Current liabilities
Trade and other payables
Provisions
Total current liabilities
Non-current liabilities
Provisions
Total non-current liabilities
Total liabilities
Net assets
Equity
Issued capital
Reserves
Accumulated losses
Notes
2022
$
2021
$
6
7
8
9
10
11
12
3,839,241
335,331
20,000
1,016,448
64,381
20,000
4,194,572
1,100,829
32,555
9,525,406
33,889
8,933,030
9,557,961
8,966,919
13,752,533
10,067,748
660,771
15,255
333,567
14,131
676,026
347,698
12
341,642
515,898
341,642
515,898
1,017,668
863,596
12,734,864
9,204,153
13
14
36,811,242
1,709,695
(28,149,570)
34,388,392
763,990
(28,313,361)
10,371,366
Total equity attributable to the shareholders of
Resources & Energy Group Limited
Non-controlling interests
Total equity
2,363,498
12,734,864
6,839,021
2,365,132
9,204,153
This consolidated statement of financial position should be read in conjunction with the notes to the financial
statements
Annual Report
June 2022
15
Consolidated Statement of Cash Flows
For the year ended 30 June 2022
Cash flows from operating activities
Receipts from customers
Payments to suppliers and employees
Notes
2022
$
2021
$
3,353,131 -
(1,480,690)
(1,066,464)
Net cash flows used in operating activities
6(b)
2,286,667
(1,480,690)
Cash flows from investing activities
Purchase of property, plant and equipment
Exploration and evaluation costs capitalised
Proceeds from sale of mining tenements
-
(2,003,524)
-
(4,000)
(2,200,521)
400,000
Net cash flows used in investing activities
(2,003,524)
(1,804,521)
Cash flows from financing activities
Repayment of borrowings
Share placement
Transaction costs on issue of shares
-
2,725,000
(185,350)
(116,296)
3,300,000
(238,312)
Net cash flows provided by financing activities
2,539,650
2,945,392
Net decrease in cash and cash equivalents
2,822,793
(339,819)
Cash and cash equivalents at beginning of period
1,016,448
1,356,267
Cash and cash equivalents at end of period
6(a)
3,839,241
1,016,448
This consolidated statement of cash flow should be read in conjunction with the notes to the financial
statements
Annual Report
June 2022
16
Consolidated Statement of Changes in Equity
For the year ended 30 June 2022
Issued
capital
$
Share option
reserve
$
Accumulated
losses
$
Non-
controlling
interests
$
Total
$
Balance at 1 July 2020
31,326,704
624,023
(26,841,170)
2,365,229
7,474,786
Total comprehensive income for the
year
Issue of shares
Capital raising cost
Share-based payment
-
-
(1,472,190)
(97)
(1,472,288)
3,300,000
(238,312)
-
-
-
139,967
-
-
-
-
-
-
3,300,000
(238,312)
139,967
Balance at 30 June 2021
34,388,392
763,990
(28,313,361)
2,365,132
9,204,153
Balance at 1 July 2021
34,388,392
763,990
(28,313,361)
2,365,132
9,204,153
Total comprehensive income for the
year
Issue of shares
Capital raising cost
Share-based payment
-
-
163,790
(1,634)
162,157
2,725,000
(302,150)
-
-
-
945,705
-
-
-
-
-
-
2,725,000
(302,150)
945,705
Balance at 30 June 2022
36,811,242
1,709,695
(28,149,570)
2,363,498
12,734,864
This consolidated statement of changes in equity should be read in conjunction with the notes to the financial
statements
Annual Report
June 2022
17
Notes to the Financial Statements
For the year ended 30 June 2022
1
Corporate information
Resources & Energy Group Limited (the “Company”) is a listed public company incorporated and
domiciled in Australia. The consolidated financial statements for the year ended 30 June 2022 comprise
the Company and its controlled entities (together referred to as the “Group”).
The consolidated financial statements are presented in Australian dollars which is the Company's
functional and presentation currency.
The consolidated financial statements were approved by the Board of Directors on 30 September 2022.
The principal accounting policies are set out below. These policies have been consistently applied
unless otherwise noted.
2
a
Summary of significant accounting policies
Basis of preparation
These financial statements are general purpose financial statements which have been prepared in
accordance with the Corporations Act 2001, Accounting Standards and Interpretations, and comply with
other requirements of the law.
For the purposes of preparing the consolidated financial statements, the Company is a for-profit listed
public entity.
Accounting Standards include Australian Accounting Standards. Compliance with Australian Accounting
Standards ensures that the financial statements and notes of the company and the Group comply with
International Financial Reporting Standards ('IFRS').
The consolidated financial statements have been prepared on the basis of historical cost, except where
assets or liabilities are measured at revalued amounts or fair values at the end of each reporting
period, as explained in the accounting policies below. Historical cost is generally based on the fair
values of the consideration given in exchange for goods and services. All amounts are presented in
Australian dollars.
New or amended Accounting Standards and Interpretations adopted
b
The consolidated entity has adopted all of the new or amended Accounting Standards and
Interpretations issued by the Australian Accounting Standards Board ('AASB') that are mandatory for
the current reporting period. Any new or amended Accounting Standards or Interpretations that are not
yet mandatory have not been early adopted.
c
Basis of consolidation
The consolidated financial statements incorporate the financial statements of the Company and entities
controlled by the Company. Control is achieved when the Company:
• has power over the investee;
• is exposed, or has rights, to variable returns from its involvement with the investee; and
• has the ability to use its power to affect its returns.
The Company reassesses whether or not it controls an investee if facts and circumstances indicate that
there are changes to one or more of the three elements of control listed above.
Consolidation of a subsidiary begins when the Company obtains control over the subsidiary and ceases
when the Company loses control of the subsidiary. Specifically, income and expenses of a subsidiary
acquired or disposed of during the year are included in the consolidated statement of profit or loss and
other comprehensive income from the date the Company gains control until the date when the Company
ceases to control the subsidiary.
Annual Report
June 2022
18
Notes to the Financial Statements
For the year ended 30 June 2022
Profit or loss and each component of other comprehensive income are attributed to the owners of the
Company and to the non-controlling interests. Total comprehensive income of subsidiaries is attributed
to the owners of the Company and to the non-controlling interests even if this results in the non-
controlling interests having a deficit balance.
All intragroup assets and liabilities, equity, income, expenses and cash flows relating to transactions
between members of the Group are eliminated in full on consolidation.
d
Significant accounting judgements, estimates and assumptions
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.
The key assumptions concerning the future and other key sources of estimate uncertainty at the
reporting date, that have a significant risk of causing a material adjustment to the carrying amounts of
assets and liabilities within the next financial year, are described below. The Group based its
assumptions and estimates on parameters available when the consolidated financial statements were
prepared. Existing circumstances and assumptions about future developments, however, may change
due to market changes or circumstances arising beyond the control of the Group. Such changes are
reflected in the assumptions when they occur.
Carrying value of exploration, evaluation and development assets
The Group capitalises expenditure relating to exploration, evaluation and mine development 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. While there are certain areas of interest from
which no reserves have been extracted, the directors are of the continued belief that such expenditure
should not be written off since feasibility studies in such areas have not yet concluded.
The Group reclassifies exploration and evaluation expenditure to mine development assets when the
Board assess that the mine has reached a point where it is certain that extraction of ore will commence
in the immediate future.
Capitalised expenditure for exploration and evaluation is carried at the end of the reporting period at
$9,525,406 (2021: $8,933,030).
Determination of mineral resources and ore reserves
The Group estimates its Mineral Resources and Ore Reserves in accordance with the Australasian Code
of Reporting of Exploration Results, Mineral Resources and Ore Reserves (“the JORC Code”). The
information on mineral resources and ore reserves is prepared by or under the supervision of
Competent Persons as defined in the JORC Code. The amounts presented in the statement of Mineral
Resources and Ore Reserves are determined under the JORC Code where is information is available.
When a resource or reserve amount prepared in accordance with the JORC Code for a particular mine
is not available, then no amounts are disclosed. For the purposes of impairment testing of assets the
Board applies JORC Code verified information when it is available, or otherwise management estimates
of potential resources.
Annual Report
June 2022
19
Notes to the Financial Statements
For the year ended 30 June 2022
There are numerous uncertainties inherent in estimating mineral resources and ore reserves and
assumptions that are valid at the time of estimation which 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 depreciation and
amortisation rates, asset carrying values and impairment assessments.
Share based payments
The costs of the share-based payments are calculated on the basis of the fair value of the equity
instrument at grant date. Determining the fair value assumes choosing the most suitable valuation
model for these equity instruments, by which the characteristics of the grant have a decisive influence.
This assumes also the input into the valuation model of some relevant judgments, like the estimated
expected life of the share option and the market volatility of the Company's ordinary shares. No share-
based payments were issued during the year.
The judgments made and the model used are further detailed in Note 17.
e
Revenue recognition
The core principle of AASB 15 is that revenue is recognised on a basis that reflects the transfer of
promised goods or services to customers at an amount that reflects the consideration the Group
expects to receive in exchange for those goods or services. Revenue is recognised by applying a five-
step model as follows:
1. identifying the contract with a customer;
2. identifying the performance obligations;
3. determining the transaction price;
4. allocating the transaction price to the performance obligations; and
5. recognising revenue when/as performance obligation(s) are satisfied.
Sale of goods
Revenue from sales of gold is recognised when control of the goods has transferred, being the point in
time when the goods have been shipped to the customer. Revenue is only recognised where it is highly
probable that a significant reversal of revenue will not occur and control gets completely passed on to
the customers.
Costs to obtain a contract
Costs incurred that would have been incurred regardless of whether the contract was won are
expensed, unless those costs are explicitly chargeable to the customer in any case (whether or not the
contract is won).
Other income
Other income is recognised on an accruals basis when the Company is entitled to it.
f
Borrowing costs
Borrowing costs are recognised as an expense when incurred.
Annual Report
June 2022
20
Notes to the Financial Statements
For the year ended 30 June 2022
g
Cash and short-term deposits
Cash and short-term deposits in the statement of financial position comprise cash at banks and on
hand, short-term deposits and highly liquid investments with a maturity of three months or less.
For the purposes of the consolidated statement of cash flows, cash and cash equivalents consist of
cash and short-term deposits as defined above.
h
Financial Instruments
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 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 at amortised cost. Financial assets are not
reclassified subsequent to their initial recognition unless the Group changes its business model for
managing financial assets. Assets measured at amortised cost are financial assets where the business
model is to hold assets to collect contractual cash flows and the contractual terms give rise on
specified dates to cash flows are solely payments of principal and interest on the principal amount
outstanding. 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. Subsequent to initial
recognition, these assets are carried at amortised cost using the effective interest rate method less
provision for impairment. Interest income, foreign exchange gains or losses and impairment are
recognised in profit or loss. Gain or loss on derecognition is recognised in profit or loss.
Impairment of financial assets
Impairment of financial assets is recognised on an expected credit loss (ECL) basis for financial assets
measured at amortised cost. When determining whether the credit risk of a financial assets has
increased significant since initial recognition and when estimating ECL, the Group considers reasonable
and supportable information that is relevant and available without undue cost or effort. This includes
both quantitative and qualitative information and analysis based on the Group's historical experience
and informed credit assessment and including forward looking information.
Credit losses are measured as the present value of the difference between the cash flows due to the
Group in accordance with the contract and the cash flows expected to be received. This is applied
using a probability weighted approach.
Impairment of trade and other receivables have been determined using the simplified approach in AASB
9 which uses an estimation of lifetime expected credit losses. The Group has determined the
probability of non-payment of the receivable and contract asset and multiplied this by the amount of
the expected loss arising from default.
Annual Report
June 2022
21
Notes to the Financial Statements
For the year ended 30 June 2022
Financial liabilities
The Group measures all financial liabilities initially at fair value less transaction costs, subsequently
financial liabilities are measured at amortised cost using the effective interest rate method. The
financial liabilities of the Group comprise trade and other payables, borrowings and finance lease
liabilities.
(i) Financial assets
Financial assets are classified as financial assets as fair value through profit or loss, loans and
receivables, held-to-maturity investments, available-for-sale financial assets, or as derivatives
designated as hedging instruments in an effective hedge, as appropriate. The Group determines the
classification of its financial assets at initial recognition based on the nature and purpose of a
financial asset.
(ii) Loans and receivables
Loans and receivables are non-derivative financial assets with fixed or determinable payments that
are not quoted in an active market. After initial measurement, such financial assets are subsequently
measured at amortised cost using the effective interest rate (EIR) method, less impairment. Amortised
cost is calculated by taking into account any discount or premium on acquisition and fees or costs
that are an integral part of the EIR. The EIR amortisation is included in the income statement in
finance costs for loans or other operating expenses for receivables.
(iii) Impairment of financial assets
The Group assesses, at each reporting date, whether there is objective evidence that a financial asset
or a group of financial assets is impaired. A financial asset or a group of financial assets is deemed
to be impaired if there is objective evidence of impairment as a result of one or more events that has
occurred since the initial recognition of the asset (an incurred "loss event") and that loss event has an
impact on the estimated future cash flows of the financial asset or the group of financial assets that
can be reliably estimated.
(iv) Financial liabilities
Financial liabilities are classified as trade and other payables, loans and borrowings. The Group
determines the classification of its financial liabilities at initial recognition.
All financial liabilities are recognised initially at fair value and, in the case of loans and borrowings,
net of directly attributable transaction costs.
Financial liabilities designated upon initial recognition at fair value through profit or loss are
designated at the initial date of recognition, and only if the criteria in AASB 139 are satisfied. The
Group has not designated any financial liability as, at fair value through profit or loss.
(v) Loans and borrowings
After initial recognition, interest bearing loans and borrowings are subsequently measured at
amortised cost using the EIR method. Gains and losses are recognised in profit or loss when the
liabilities are derecognised as well as through the EIR amortisation process.
Annual Report
June 2022
22
Notes to the Financial Statements
For the year ended 30 June 2022
Amortised cost is calculated by taking into account any discount or premium on acquisition and fees
or costs that are an integral part of the EIR. The EIR amortisation is included in finance costs in the
income statement.
i
Income tax
Current income tax
Current income tax assets and liabilities for the current period 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, at the reporting date in the countries
where the Group operates and generates taxable income.
Deferred tax
Deferred tax is provided using the liability method on temporary differences between the tax bases of
assets and liabilities and their carrying amounts for financial reporting purposes at the reporting date.
Deferred income tax liabilities are recognised for all taxable temporary differences except:
when the deferred income tax liability arises from the initial recognition of goodwill or of an asset or
liability in a transaction that is not a business combination and that, at the time of the transaction,
affects neither the accounting profit nor taxable profit or loss; or
when the taxable temporary difference is associated with investments in subsidiaries, associates or
interests in joint ventures, and the timing of the reversal of the temporary difference can be
controlled and it is probable that the temporary difference will not reverse in the foreseeable future.
Deferred tax assets are recognised for all deductible temporary differences, the carry forward of
unused tax credits and unused tax losses. Deferred tax assets are recognised to the extent that it is
probable that taxable profit will be available against which the deductible temporary differences and
the carry forward of unused tax credits and unused tax losses can be utilised, except:
when the deferred tax asset relating to the deductible temporary difference arises from 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 the accounting profit nor taxable profit or loss; or
when the deductible temporary difference is associated with investments in subsidiaries, associates
or interests in joint ventures, in which case a deferred tax asset is only recognised to the extent that
it is probable that the temporary difference will reverse in the foreseeable future and taxable profit
will be available against which the temporary difference can be utilised.
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year
when the asset is realised or the liability is settled, based on tax rates (and tax laws) that have been
enacted or substantively enacted at the reporting date.
Deferred tax relating to items recognised outside profit or loss is recognised outside profit or loss.
Deferred tax items are recognised in correlation to the underlying transaction either in other
Deferred tax assets and deferred tax liabilities are offset if a legally enforceable right exists to set off
current tax assets against current tax liabilities and the deferred tax assets and liabilities relate to the
same taxable entity and the same taxation authority.
Annual Report
June 2022
23
Notes to the Financial Statements
For the year ended 30 June 2022
j
Goods and services tax (GST)
Revenues, expenses and assets are recognised net of the amount of GST except:
when the GST incurred on a purchase of goods and services is not recoverable from the taxation
authority, in which case the GST is recognised as part of the cost of acquisition of the asset or as
part of the expense item as applicable; and
receivables and payables, which are stated with the amount of GST included.
The net amount of GST recoverable from, or payable to, the taxation authority is included as part of
receivables or payables in the balance sheet.
Cash flows are included in the Cash Flow Statement 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 are classified as operating cash flows.
Commitments and contingencies are disclosed net of the amount of GST recoverable from, or payable
to, the taxation authority.
k
Property, plant and equipment
Property, plant and equipment is stated at cost, net of accumulated depreciation and accumulated
impairment losses, if any. Such cost includes the cost of replacing part of property, plant and
equipment and borrowing costs for long-term construction projects if the recognition criteria are met.
When significant parts of property, plant and equipment are required to be replaced at intervals, the
Group recognises such parts as individual assets with specific useful lives and depreciates them
accordingly. Likewise, when a major inspection is performed, its cost is recognised in the carrying
amount of the plant and equipment as a replacement if the recognition criteria are satisfied. All other
repair and maintenance costs are recognised in profit or loss as incurred.
Depreciation is calculated using a combination of straight-line and diminishing-value basis over the
estimated useful life of all assets.
An item of property, plant and equipment and any significant part initially recognised is derecognised
upon disposal or when no future economic benefits are expected from its use or disposal. Any gain or
loss arising on derecognition of the asset (calculated as the difference between the net disposal
proceeds and the carrying amount of the asset) is included in the income statement when the asset is
derecognised.
The residual values, useful lives and methods of depreciation of property, plant and equipment are
reviewed at each financial year end and adjusted prospectively, if appropriate. Property, plant and
equipment are depreciated over periods of three to five years.
l
Exploration and evaluation expenditure
Exploration and evaluation activity involves the search for mineral resources, including gold and copper,
and includes assessing all available geophysical data including gravity, magnetic and seismic and
collation of additional data; exploratory drilling; determining and examining the volume and grade of
the resource; and cost of acquisition of exploration tenements.
Annual Report
June 2022
24
Notes to the Financial Statements
For the year ended 30 June 2022
Administration costs that are not directly attributable to a specific exploration area are charged to the
profit or loss. Licence costs paid in connection with a right to explore in an existing exploration area
are capitalised and amortised over the term of the permit. Exploration and evaluation expenditure is
capitalised in respect of each identifiable area of interest as the exploration and evaluation activity
has not reached a stage which permits a reasonable assessment of the existence of commercially
recoverable gold deposits that are of sufficient scale to support the project concept.
As the asset is not available for use, it is not depreciated. All capitalised exploration and evaluation
expenditure is monitored for indication of impairment. Where a potential impairment is indicated,
assessment is performed for each area of interest in conjunction with the group of operating assets
(representing a cash generating unit) to which the exploration is attributed. When production
commences, the assets for the relevant area of interest are amortised over the life of the area
according to the rate of depletion of the economically recoverable reserves.
Accumulated exploration and evaluation expenditure in relation to an abandoned area are written-off
in full in profit and loss in the period in which the decision of abandon the area is made.
m
Site restoration
Site restoration costs include the dismantling and removal of mining plant, equipment and building
structures, waste removal and rehabilitation of the site in accordance with the requirements of the
mining permits. Such costs are determined using estimates of future costs, current legal requirements
and technology.
Costs of site restoration are recognised in full at present value as a non-current liability. An equivalent
amount is capitalised as part of the cost of the asset when an obligation arises to decommission or
restore a site to a certain condition after abandonment as a result of bringing the assets to its present
location. In determining the costs of site restoration there is uncertainty regarding the nature and
extent of the restoration due to community expectations and future legislation.
n
Impairment of non-financial assets
The Group assesses, at each reporting date, whether there is an indication that an asset may be
impaired. If any indication exists, or when annual impairment testing for an asset is required, the Group
estimates the asset's recoverable amount. An asset's recoverable amount is the higher of an asset's or
cash-generating unit's ("CGU's") fair value less costs to sell and its value-in-use. Recoverable amount is
determined for an individual asset, unless the asset does not generate cash inflows that are largely
independent of those from other assets or groups of assets. When the carrying amount of an asset or
CGU exceeds its recoverable amount, the asset is considered impaired and is written down to its
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. In determining fair value less costs to sell, recent market transactions are taken
into account. If no such transactions can be identified, an appropriate valuation model is used. These
calculations are corroborated by valuation multiples, quoted share prices for publicly traded companies
or other available fair value indicators.
The Group bases its impairment calculation on detailed budgets and forecast calculations, which are
prepared separately for each of the Group's CGU's to which the individual assets are allocated. These
budgets and forecast calculations generally cover a period of five years. For longer periods, a long-
term growth rate is calculated and applied to project future cash flows after the fifth year.
Impairment losses of continuing operations are recognised in the income statement in expenses.
Annual Report
June 2022
25
Notes to the Financial Statements
For the year ended 30 June 2022
For assets excluding goodwill, an assessment is made at each reporting date to determine whether
there is an indication that previously recognised impairment losses no longer exist or have decreased. If
such indication exists, the Group estimates the asset's or CGU's recoverable amount. A previously
recognised impairment loss is reversed only if there has been a change in the assumptions used to
determine the asset's recoverable amount since the last impairment loss was recognised. The reversal
is limited so that the carrying amount of the asset does not exceed its recoverable amount, nor 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 the income statement unless
the asset is carried at a revalued amount, in which case, the reversal is treated as a revaluation
increase.
o
Share-based payment transactions
Equity-settled share-based payments to employees and others providing similar services are measured
at the fair value of the equity instrument at the grant date. Fair value is measured by use of either a
binominal or Black Scholes model. The expected life used in the model has been adjusted, based on
management’s best estimate, for the effects of non-transferability, exercise restrictions, and
behavioural considerations.
Further details on how the fair value of equity-settled share-based transactions has been determined
can be found in Note 17. No share-based payments were issued during the year.
The fair value determined at the grant date of the equity-settled share-based payments is expensed on
a straight-line basis over the vesting period, based on the Group’s estimate of equity instruments that
will eventually vest, with a corresponding increase in equity.
Equity-settled share-based payment transactions with parties other than employees are measured at
the fair value of the goods and services received, except where the fair value cannot be estimated
reliably, in which case they are measured at the fair value of the equity instruments granted, measured
at the date the entity obtains the goods or the counterparty renders the service. For cash-settled share-
based payments, a liability equal to the portion of the goods or services received is recognised at the
current fair value determined at each reporting date, with any changes in fair value recognised in profit
or loss for the year.
p
Employee benefits provision
Provision is made for employee benefits accumulated as a result of employees rendering services up to
the reporting date. These benefits include wages and salaries, annual leave, and long service leave.
Liabilities arising in respect of wages and salaries, annual leave and any other short-term employee
benefits are measured at their nominal amounts based on remuneration rates which are expected to
be paid when the liability is settled. All other employee benefit liabilities are measured at the present
value of the estimated future cash outflow to be made in respect of services provided by employees up
to the reporting date. In determining the present value of future cash outflows, the market yield as at
the reporting date on national government bonds, which have terms to maturity approximating the
terms of the related liability, are used.
q
Contributed equity
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new
shares or options are shown in equity as a deduction, net of tax, from the proceeds.
Annual Report
June 2022
26
Notes to the Financial Statements
For the year ended 30 June 2022
r
s
Comparatives
Where necessary, comparatives have been reclassified and repositioned for consistency with current
year disclosures.
New Accounting Standards and Interpretations not yet mandatory or early adopted
Australian Accounting Standards and Interpretations that have recently been issued or amended but
are not yet mandatory, have not been early adopted by the consolidated entity for the annual reporting
period ended 30 June 2022. The consolidated entity has not yet assessed the impact of these new or
amended Accounting Standards and Interpretations.
Annual Report
June 2022
27
Notes to the Financial Statements (continued)
For the year ended 30 June 2022
3 Segment information
As at the date of this report, the Group has two operating segments: gold mine exploration and
development and other activities (primarily corporate costs). The Group has identified its operating
segments based on internal reports that are reviewed and used by the chief operating decision
maker in assessing performance. The accounting policies and amounts reported for internal reporting
are consistent with the financial information in this financial report.
2022
Segment revenue
Other income
Segment expenses
Administration and employment costs
Depreciation, impairment and amortisation
Finance costs (net interest income)
Gold
$
Corporate
$
Total
$
3,353,131
- 3,353,131
3,188,012
1,334
-
(6)
3,189,346 - 6
- 3,188,012
- 1,334
(6)
3,189,340
Income tax benefit
- - -
Income/(loss) after tax from continuing
operations
Segment assets
Segment liabilities
2021
Segment revenue
Revenue
Segment expenses
163,784
6
163,790
9,557,961
676,026
4,194,572
341,642
13,752,533
1,017,668
- -
-
Administration and employment costs
Depreciation, impairment and amortisation
Finance costs (net interest income)
- 1,465,533 1,465,533
1,040
1,040 -
5,617
5,617
-
1,040 1,471,150
1,472,190
Income tax benefit
- -
-
Loss after tax from continuing operations
(1,040)
(1,471,150)
(1,472,190)
Segment assets
Segment liabilities
8,966,919
347,696
1,100,829
515,898
10,067,748
863,594
Annual Report
June 2022
28
Notes to the Financial Statements (continued)
For the year ended 30 June 2022
4 Other income and expenses
(a) Other Income
Share of net operating profit from ore extraction agreement
3,353,131
-
Note
2022
$
2021
$
(b) Employee benefits expense
Wages and salaries
Superannuation benefits
Total employee benefits expense
(c) Finance costs
Interest expense - Project Development Notes
Interest expense - borrowings
Less: interest income
Finance costs (net)
5 Income tax
61,346
24,677
86,023
-
(4)
(2)
(6)
40,341
14,842
55,184
-
5,803
(186)
(5,700)
Income tax expense - tax benefit written off
-
-
The Group has estimated tax losses as at the 30 June 2022 of $20,986,371 (2021: $18,927,013). The
benefit relating to these and the current year losses has not been recognised in the financial report at 30
June 2022 as it is not probable that future taxable profit will be available against which the Group would
be able to utilise these losses.
Tax returns for the Group for the year ended 30 June 2022 are in progress at the date of this report.
Current and prior year tax losses will only be available to offset against future profits if:
(i) the Group and the Company derives future assessable income of a nature and of an amount
sufficient to enable the benefit from the deductions for the losses to be realised;
(ii) the Group and the Company continue to comply with the conditions for deductibility imposed by tax
legislation; and
(iii) no changes in tax legislation adversely affect the Group and the Company in realising the benefit
The Company and its wholly owned entities have not formed a consolidated income tax group as of 30
June 2022.
6 Cash and cash equivalents
(a) Cash and bank balances
Cash at bank earns interest at floating rates based on daily
bank deposit rates.
3,839,241
1,016,448
Annual Report
June 2022
29
Notes to the Financial Statements (continued)
For the year ended 30 June 2022
(b)
Reconciliation from the net profit after tax to the net cash flows from operations
Profit/(loss) from continuing operations after tax
162,157
(1,472,288)
Adjustments for:
Depreciation and amortisation
Share-based payments
Other
1,235,558
828,905
2,669
(1,040)
139,966
2,081
Changes in operating assets and liabilities, net of effects from purchase of controlled entity
Decrease/(increase) in receivables
(Decrease)/increase in payables
(Decrease)/increase in other liabilities
(270,950)
327,204
1,124
(42,630)
(86,032)
(20,748)
Net cash used in operating activities
2,286,667
(1,480,690)
7 Trade and other receivables
Trade receivable
GST refundable
335,331
-
335,331
-
64,381
64,381
Trade receivable is the residual amount owing of the net operating profit from an extraction program
8 Other assets
Deposits
Deposits of $20,000 (2021: $20,000) are subject to a charge refer Note 18.
9 Property, plant and equipment
20,000
20,000
At 30 June 2022
Cost
Accumulated depreciation
Net carrying amount
Movement in property, plant and equipment
Carrying amount at the beginning of the year
Depreciation charge for the year
Carrying amount at the end of the year
Freehold
land
Plant and
equipment
30,000
-
30,000
17,610
(15,055)
2,555
30,000
-
30,000
3,889
(1,334)
2,555
Total
47,610
(15,055)
32,555
33,889
(1,334)
32,555
Annual Report
June 2022
30
Notes to the Financial Statements (continued)
For the year ended 30 June 2022
At 30 June 2021
Cost
Accumulated depreciation
Net carrying amount
Movement in property, plant and equipment
Carrying amount at the beginning of the year
Additions - other
Depreciation charge for the year
Carrying amount at the end of the year
10 Exploration and evaluation assets
At 30 June 2022
Cost
Accumulated amortisation and impairment1
Net carrying amount
Movement in exploration and evaluation assets
Carrying amount at the beginning of the year
Additions - other
Remeasurement of rehabilitation provision
Amortisation1
Carrying amount at the end of the year
Freehold
land
Plant and
equipment
30,000
-
30,000
30,000
-
-
30,000
17,610
(13,721)
3,889
929
4,000
(1,040)
3,889
Total
47,610
(13,721)
33,889
30,929
4,000
(1,040)
33,889
Total
10,762,298
(1,236,892)
9,525,406
8,933,030
2,003,524
(174,256)
(1,236,892)
9,525,406
Total
8,933,030
-
8,933,030
6,732,509
2,200,521
8,933,030
Exploration costs are amortised over the life of the area according to the rate of depletion
of the economically recoverable reserves.
At 30 June 2021
Cost
Accumulated amortisation and impairment
Net carrying amount
Movement in exploration and evaluation assets
Carrying amount at the beginning of the year
Additions - other
Carrying amount at the end of the year
Exploration licenses are carried at cost of acquisition less impairment losses. 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. The recoverable amount
of development expenditure is determined as the higher of its fair value less costs to sell and its value in
use.
Annual Report
June 2022
31
Notes to the Financial Statements (continued)
For the year ended 30 June 2022
11 Trade and other payables
Amounts owed to director
Other payables
12 Provisions
Current
Employee entitlements
Non-Current
Rehabilitation provision
Total provisions
Movement in provisions
2022
$
2021
$
22,000
638,771
11,000
322,567
660,771
333,567
2022
$
2021
$
15,255 14,131
341,642 515,898
356,897 530,029
At 30 June 2022
Carrying amount at the beginning of the year
Remeasurement of provision
Employee
benefits
Rehabilitation
Total
14,131
1,124
515,898
(174,256)
530,029
(173,132)
Carrying amount at the end of the year
15,255
341,642
356,897
At 30 June 2021
Carrying amount at the beginning of the year
Remeasurement of provision
Employee
benefits
Rehabilitation
Total
14,131
-
515,898
-
530,029
-
Carrying amount at the end of the year
14,131
515,898
530,029
Annual Report
June 2022
32
Notes to the Financial Statements (continued)
For the year ended 30 June 2022
13 Issued capital
499,805,789 fully paid ordinary shares (2021: 431,680,789)
Movements in fully paid ordinary shares
2022
$
2021
$
36,811,242
34,388,392
Date
$/share
2022
Number
$
$/share
2021
Number
$
Balance at the beginning of the
financial year
Placement
2/11/2020 -
431,680,789
34,388,392
387,680,770
31,326,704
-
-
0.075
44,000,019
3,300,000
Placement
10/11/2021 0.040
68,125,000
2,725,000
Cost of equity issues
-
(302,150)
-
-
-
(238,312)
Balance at the end of the financial
year
499,805,789
36,811,242
431,680,789
34,388,392
14 Reserves
Share option reserve
Balance at the beginning of the financial year
Share based payment
2022
$
2021
$
763,990
945,705
624,023
139,967
Balance at the end of the financial year
1,709,695
763,990
(i)
Reserve arises on the issue of options in payment for services or fees. Further information on options
issued is shown in Note 17 to the financial statements.
15 Asset backing and earnings per share
Basic and diluted earnings per share
Basic and diluted assets per share
The following reflects the income and share data used in the basic and diluted
per share calculations:
2022
cents per
share
2021
cents per
share
0.03
2.68
2022
$
(0.35)
2.21
2021
$
Loss attributable to shareholders of the Company used in the calculation of
basic and diluted earnings per share
163,790
(1,472,191)
Annual Report
June 2022
33
Notes to the Financial Statements (continued)
For the year ended 30 June 2022
2022
Number
2021
Number
Weighted average number of ordinary shares for basic earnings per share
Effect of dilution of share options on issue (i)
474,982,159
-
416,612,289
-
Weighted average number of ordinary shares adjusted for the effect of dilution
474,982,159
416,612,289
(i)
Share options on issue that have been assessed as being dilutive for the purpose of calculating earnings
per share have been excluded from the calculation of earnings per share as the Group has incurred a loss
after tax. In that circumstance the inclusion of share options would reduce the earnings per share (loss)
and present a misleading result.
16 Financial instruments
Financial risk management objectives
(a)
The Group’s financial instruments consist mainly of deposits with banks, accounts receivable and payable,
loans, convertible instruments and derivatives. The main purpose of non-derivative financial instruments is to
raise finance for Group operations. The directors consider that the limited risks mean there is no need to enter
into risk management strategies involving derivative instruments.
The Group is exposed to credit risk, liquidity risk and interest rate risk. There have been no substantive
changes in the types of risks the Group is exposed to, how these risks arise, or the Board’s objectives, policies
and processes for managing or measuring the risks from the previous period.
The Group manages liquidity risk by a combination of maintaining cash reserves, banking facilities and
continuously monitoring forecast and actual cash flows. Ultimate responsibility for liquidity risk management
rests with the board of directors, which has built an appropriate liquidity risk management framework for the
management of the Group’s short, medium and long-term funding and liquidity management requirements.
Risks are managed through sensitivity analysis to model the impact of changes upon the Group’s profits.
The maximum exposure to credit risk, excluding the value of any collateral or other security, at balance date of
recognised financial assets, is the carrying amount, net of any provisions for impairment of those assets, as
disclosed in the balance sheet and notes to the financial statements.
(b)
Significant accounting policies
Details of the significant accounting policies and methods adopted, including the criteria for recognition, the
basis of measurement and the basis on which income and expenses are recognised, in respect of each class of
financial asset, financial liability and equity instrument are disclosed in Note 2 to the financial statements.
Fair value of financial instruments
(c)
The fair values of financial assets and financial liabilities are determined as follows:
-
the fair value of financial assets and financial liabilities with standard terms and conditions and traded on
active liquid markets are determined with reference to quoted market prices; and
- the fair value of other financial assets and financial liabilities are determined in accordance with generally
accepted pricing models based on discounted cash flow analysis.
Annual Report
June 2022
34
Notes to the Financial Statements (continued)
For the year ended 30 June 2022
(d) Categories of financial instruments
The following table details the carrying amounts and fair values of the Group's financial assets and financial
liabilities. The directors consider that the carrying amounts of financial assets and liabilities recorded at
amortised cost in the financial statements approximate their fair values.
Financial assets
Cash and cash equivalents
Trade and other receivables
Financial liabilities
Liabilities measured at amortised cost:
Trade and other payables
Note
2022
$
2021
$
6 3,839,241 1,016,448
335,331 64,381
4,174,572 1,080,829
Note
2022
$
2021
$
660,771
333,567
660,771
333,567
(i) Financial instruments that are measured subsequent to initial recognition at fair value, are grouped into
Levels 1 to 3 based on the degree to which the fair value is observable.
Level 1 - fair value measurements are those derived from quoted sources (unadjusted) in active markets for
identical assets or liabilities.
Level 2 - fair value measurements are those derived from inputs other than quoted prices included within
Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived
from prices).
Level 3 fair value measurements are those derived from valuation techniques that include inputs for the
asset of liability that are not based on observable market data (unobservable inputs).
The fair value of derivative instruments is significantly affected by movements in interest rates. Sensitivity of
the valuation of the derivative liabilities to changes in these factors is shown below at item (j).
(e) Credit risk exposures
Credit risk arises principally from the Group’s receivables and cash and bank balances. Credit risk is kept
continually under review and managed to reduce the incidence of material losses being incurred by the non-
receipt of monies due. The Group’s financial assets include trade and other receivables and loans to related
entities.
The maximum exposure to credit risk on financial assets of the Group which has been recognised on the
balance sheets is generally the carrying amount, net of any provisions for doubtful debts. The Group has no
significant concentrations of credit risk with any single counterparty or group of counterparties. The Group's
financial assets are limited to credit risk exposures to Australia on a geographical basis. Trade and other
receivables that are neither past due nor impaired are limited to a few counterparties which are considered
credit worthy.
Annual Report
June 2022
35
Notes to the Financial Statements (continued)
For the year ended 30 June 2022
2022
Interest rates
Contractual
repayment
amount
6mths or
less
6-12 mths
1-5 years
Cash and cash equivalents
Receivables
2021
Cash and cash equivalents
Receivables
(f)
Liquidity risk management
2.0%
na
2.0%
na
3,839,241 3,839,241
- -
335,331
335,331
- -
Contractual
repayment
amount
6mths or
less
6-12 mths
1-5 years
1,016,448
1,016,448
- -
64,381
64,381
- -
The board has put in place liquidity risk management policies for the management of the Group’s short,
medium and long-term funding and liquidity management requirements. The Group manages liquidity risk by
having a combination of:
-
-
-
continuously monitoring forecast and actual cash flows;
having in place loan facilities structured to grow as the size of the business increases; and
arranging issues of securities as required.
To the extent possible maturity profiles of financial assets and liabilities are matched.
The board reviews the capital structure on a regular basis. The board does not have a set debt level target
however the level of borrowings is in line with expectations.
The following tables detail the Group’s remaining contractual maturity for its non-derivative financial liabilities.
The tables have been drawn up based on the undiscounted cash flows of financial liabilities based on the
earliest date on which the Group could be required to pay. The table includes principal and interest cash flows
at the face value of the amount owing and therefore the figures differ from those shown in the financial
statements.
2022
Interest
rate
Trade payables
-
2021
Interest
rate
Trade payables
-
Contractual
repayment
amount
660,771
Contractual
repayment
amount
333,567
Less than 1 year
1-5 years
660,771
-
Less than 1 year
1-5 years
333,567
-
Annual Report
June 2022
36
Notes to the Financial Statements (continued)
For the year ended 30 June 2022
The table below reflects an undiscounted view of the contractual maturity for financial liabilities and cash flows
expected to be realised from financial assets. Actual timing may differ from that disclosed. The timing of the
cash flows presented in the table to settle financial liabilities reflects the earliest contractual settlement dates.
Within 1 Year
2021
$
2022
$
1 to 5 Year
2021
$
2022
$
Total
2022
$
2021
$
Group financial liabilities due for payment
Trade payables
660,771
333,567
- - 660,771
333,567
Total contractual
and expected
outflows
660,771
333,567
- - 660,771
333,567
Group financial assets - cash flows realisable
Cash
Receivables
3,839,241 1,016,448
335,331 64,381
- - 3,839,241 1,016,448
- - 335,331 64,381
Total
4,174,572 1,080,829
- - 4,174,572 1,080,829
Net outflow/(inflows)
(3,513,801)
(747,263)
- -
(3,513,801)
(747,263)
(g) Interest rate risk management
The Group has borrowed funds at fixed rate of interest and therefore currently has limited exposure to
movements in interest rates.
(h) Foreign currency risk management
At its current stage of development the Group is indirectly exposed to foreign currency risk, in respect of the
market price for gold which is based in US dollars.
(i) Commodity price risk management
At its current stage of development the Group is indirectly exposed to commodity price risk, in respect of the
market price for gold.
(j) Sensitivity analysis of risk factors
At 30 June 2022, the effect on profit and equity as a result of changes in interest rates, with all
other variables remaining constant, would not have a material impact.
Annual Report
June 2022
37
Notes to the Financial Statements (continued)
For the year ended 30 June 2022
17 Share-based payments
The Company has the following share options outstanding under share based plans:
2022
2021
Weighted
average
exercise
price
Number of
options
Weighted
average
exercise
price
Number of
options
Balance at the beginning of the financial year
Granted
Expired
44,117,556
48,000,000
(1,117,500)
$0.127
$0.080
$0.075
26,117,500
26,000,056
(8,000,000)
$0.127
-
$0.050
Balance at the end of the financial year
91,000,056
$0.091
44,117,556
$0.127
Exercisable at the end of the financial year
91,000,056
$0.091
44,117,556
$0.127
Share options outstanding at the end of the year have the following expiry date and exercise prices
Class
Vesting Conditions
Grant date
Expiry date
Class L
Class M
Class N
Class O
Class P
Class Q
Class R
Class S
Class T
Class U
Vested
Vested
Vested
Vested
Vested
Vested
Vested
Vested
Vested
Vested
18/12/2017
18/12/2017
11/10/2019
11/10/2019
14/10/2020
2/11/2020
15/07/2021
14/09/2021
14/09/2021
27/10/2021
15/12/2022
15/12/2022
11/10/2022
28/06/2022
30/09/2025
31/10/2022
31/08/2026
31/08/2026
31/08/2026
31/08/2026
Details of share options granted during the year:
Exercise
price
Number of
share options
2022
1,000,000
1,000,000
15,000,000
-
15,000,000
11,000,056
8,000,000
21,000,000
11,000,000
8,000,000
$0.140
$0.140
$0.080
$0.075
$0.050
$0.200
$0.080
$0.080
$0.080
$0.080
Number of
share
options
2021
1,000,000
1,000,000
15,000,000
1,117,500
15,000,000
11,000,056
-
-
-
-
91,000,056
44,117,556
Class U
14/09/2021 27/10/2021
Grant date
31/08/2026 31/08/2026
Expiry date
14/09/2021 27/10/2021
Exercisable from
$0.08
Exercise price
8,000,000
Number of options issued
$116,800
Fair value at grant date
$0.0146
Fair value at grant date per option
na
Vesting conditions
(i) Options vest either upon being engaged for 24 months or if the Company's ordinary shares have a volume
weight average price above 15 cents over a 30 day during the period 12 months form the date of issue.
Class S
Class R
15/07/2021
14/09/2021
31/08/2026 31/08/2026
14/09/2021
15/07/2021
$0.08
$0.08
21,000,000
8,000,000
$390,600
$113,600
$0.0186
$0.0142
na
na
$0.08
11,000,000
$229,900
$0.0209
na
Class T
Annual Report
June 2022
38
Notes to the Financial Statements (continued)
For the year ended 30 June 2022
The fair values of the share options were determined using the following parameters:
Expected volatility of ordinary shares %
%
Risk free interest rate
Underlying share price at valuation da$/share
Weighted average life of option
Exercise price
Valuation method
years
$/share
Class R
85.00%
0.64%
$0.030
Class S
85.00%
0.62%
$0.040
5.1 5.0
$0.08
Binomial
$0.08
Binomial
Class T
85.00%
0.59%
$0.050
Class U
62.00%
3.09%
$0.042
5.0 4.8
$0.08
Binomial
$0.08
Binomial
Details of share options granted during the prior year:
Grant date
Expiry date
Exercisable from
Exercise price
Number of options issued
Fair value at grant date
Fair value at grant date per option
Vesting conditions
Class P
Class P
14/10/2020 14/10/2020
30/09/2025 30/09/2025
14/10/2021
$0.05
7,500,000
$249,000
$0.033
Engaged for
24 months(i)
14/10/2021
$0.05
7,500,000
$249,000
$0.033
Engaged for
12 months
Class Q
2/11/2020
31/10/2022
2/11/2020
$0.20
11,000,056
na
na
na
(i) Options vest either upon being engaged for 24 months or if the Company's ordinary shares have a volume
weight average price above 15 cents over a 30 day during the period 12 months form the date of issue.
The fair values of the share options were determined using the following parameters:
Expected volatility of ordinary shares %
Risk free interest rate
%
Underlying share price at valuation da$/share
Weighted average life of option
Exercise price
Valuation method
years
$/share
Class P
109.67%
0.29%
$0.030
Class P
109.67%
0.29%
$0.030
5.0 5.0
$0.05
Binomial
$0.05
Binomial
The movement of performance rights outstanding under share based plan during the financial year were:
2022
Number of
performance
rights
Weighted
average
exercise
price
2021
Number of
performance
rights
Balance at the beginning of the financial year
Granted
Cancelled1
Balance at the end of the financial year
-
-
-
-
Exercisable at the end of the financial year
Note 1: 12,000,000 performance rights were cancelled upon resignation.
-
-
-
-
-
-
12,000,000
-
(12,000,000)
-
-
Weighted
average
exercise
price
$0.000
$0.000
$0.000
$0.000
$0.000
Annual Report
June 2022
39
Notes to the Financial Statements (continued)
For the year ended 30 June 2022
Share-based payments expense
Current year expense
Expense of instruments issued in prior period
18 Contingent liabilities
2022
$
2021
$
734,100 139,966
94,805
828,905 139,966
-
2022
$
2021
$
Corporate and management fees
493,364
493,364
Amounts invoiced by a director related entity (refer Note 20) in prior years are not payable unless and until
the Group has a proven mineral resources of gold or the equivalent value of another mineral as follows:
a) $246,682 when the Company has announced a resource of 400,000 ounces of gold; and
b) $246,682 when the Company has announced a resource of 600,000 ounces of gold.
Bank guarantees
20,000
20,000
Bank guarantees are issued on behalf of the Group by its bankers. The guarantees provide that the financier
will honour the Group's obligations under specific agreements and are secured against monies held on
deposit of $20,000 (2021: $20,000) (refer Note 8). No material losses are expected.
There are no other contingent liabilities as at 30 June 2022 (2021: nil).
19 Tenement lease commitments
Minimum expenditure commitment on tenement leases
The Group held exploration mineral licences in relation to its mines located at Mount Mackenzie, Queensland
and East Menzies, Western Australia for which minimum expenditure is required to comply with license
conditions. Amounts committed but not provided for and payable:
2022
$
2021
$
Within one year
One year or later and no later than for five years
1,104,431
3,053,746
777,598
1,576,995
4,158,177
2,354,593
Annual Report
June 2022
40
Notes to the Financial Statements (continued)
For the year ended 30 June 2022
20 Key management personnel disclosures
Key management personnel are those having authority and responsibility for planning, directing and
controlling the activities of the Group. Key management personnel consists of the directors of the Company
and senior management of the Group as defined in the Remuneration Report section of the Directors'
Report.
(a) Compensation of Key Management Personnel
The aggregate compensation made to key management personnel of the Group is set out below (i). The
remuneration shown includes all amounts incurred for the year. Further details of the compensation of key
management personnel is contained in the Directors' Report in the Remuneration Report section.
(i) Mr Kember was appointed on 8 August 2016 and his remuneration forms part of the fees charged by a
director related entity. Details of the nature of the engagement and the amount of fees charged are
provided below.
Short-term
Share-based payments
Post employment
(b) Shareholdings
2022
$
2021
$
238,350
474,200
-
712,550
114,000
-
-
114,000
The number of ordinary shares in the Company held during the financial year by a director of the Company
or senior management of the Group, including their personally related parties, are set out below.
2022
Mr Gavin Rezos
Mr Richard Poole
Mr J Daniel Moore
Mr Warren Kember
2021
Mr Gavin Rezos
Mr Richard Poole
Ms Virginia Bruce
Mr Warren Kember
Balance at the
start of the year
Granted as
compensation
Net other
change
Balance at the
end of the year
14,603,700
67,987,302
12,000,000
625,000
-
-
-
-
655,000
-
-
-
15,258,700
67,987,302
12,000,000
625,000
Balance at the
start of the year
Granted as
compensation
Net other
change
Balance at the
end of the year
14,603,700
67,987,302
550,000
625,000
-
-
-
-
-
-
-
-
14,603,700
67,987,302
550,000
625,000
Annual Report
June 2022
41
Notes to the Financial Statements (continued)
For the year ended 30 June 2022
(c) Share option holdings
The number of share options in the Company held during the financial year by a director of the Company or
senior management of the Group, including their personally related parties, are set out below.
Details of share options granted during the year are provided at Note 17.
2022
Mr Gavin Rezos
Mr Richard Poole
Mr J Daniel Moore
Mr Warren Kember
2021
Balance at the start
of the year
Granted as
compensation
Net other
change
Balance at the
end of the year
-
-
-
-
8,000,000
8,000,000
5,000,000
4,000,000
-
-
-
-
8,000,000
8,000,000
5,000,000
4,000,000
Balance at the start
of the year
Granted as
compensation
Net other
change
Balance at the
end of the year
Mr Gavin Rezos
7,500,000
-
(7,500,000)
-
(d) Other transactions with key management personnel
Richard Poole
Transactions with, or with persons or entities associated with, Mr Richard Poole, a director and the chief
executive officer of the Company, during the financial year were as follows:
The Company has entered into a Corporate Advisory and Business Development Mandate (Agreement)
with entities ultimately controlled by interests associated with Mr Richard Poole (Arthur Phillip). The
Agreement provides for the payment of fees for the raising of debt or equity capital and the charging of
costs associated with the administration of the Group.
Arthur Phillip invoiced fees and expenses for the provision of management, accounting, office
administration, consulting and company secretarial services to the Company, amounting to $411,800 (2021:
$276,136), consisting of:
Directors fees
Share-based payment
Office rent
Accounting and company secretarial services
Management services
2022
$
2021
$
33,000
148,800
33,000
76,000
121,000
411,800
33,000
-
33,000
78,136
132,000
276,136
At the end of the financial year an amount of $493,364 for fees owing in prior years, which is subject to
performance conditions, is included as a contingent liability (refer Note 18).
Annual Report
June 2022
42
Notes to the Financial Statements (continued)
For the year ended 30 June 2022
21 Related party disclosures
The consolidated financial statements include the financial statements of the Company and its controlled
entities listed in the following table. The Company is the ultimate Australian parent entity and the ultimate
parent of the Group.
Country of
Name
incorporatio
Mount Mackenzie Pty Limited
Australia
Radio Gold Pty Limited (formerly Brightsun Enterprises Pty Limited Australia
Resource & Energy Operations Pty Limited
Australia
Menzies Goldfield Pty Limited
Australia
% Equity interest
2022
100.00%
100.00%
100.00%
100.00%
2021
100.00%
100.00%
100.00%
100.00%
Deep Energy Pty Limited
Australia
51.85%
51.85%
22 Auditors' remuneration
Fees charged by the auditor of the Company for auditing or
reviewing the financial report
23 Parent entity financial information
2022
$
2021
$
60,000
55,000
(a) Summary financial information
The individual financial statements for the Company (parent entity) show the following aggregate amounts:
Balance Sheet
Current Assets
Total Assets
Current Liabilities
Total Liabilities
Net Assets
Shareholders' contributed equity
Reserves
Accumulated Losses
Profit or Loss for the year
2022
$
2021
$
580,108
14,350,360
(100,450)
(100,450)
14,249,910
1,033,420
10,250,134
(76,297)
(76,297)
10,173,837
36,919,243
1,950,795
(24,620,128)
14,249,910
34,388,393
763,990
(24,978,545)
10,173,837
Total comprehensive income/(loss) for the year
(1,529,972)
(1,340,779)
(b) Contingent Liabilities of the Parent
The Company did not have any contingent liabilities as at 30 June 2022 or in the prior financial year.
Annual Report
June 2022
43
Notes to the Financial Statements (continued)
For the year ended 30 June 2022
24 Dividend
No dividend has been declared or paid during the financial year or the prior period. The directors do not
recommend the payment of a dividend for the year ended 30 June 2022.
25 Events after balance sheet date
There have been no significant events occurring after the balance date which may affect either the Group's
operations, results of those operations or the Group's state of affairs other than the purchase of additional
tenements in the Menzies, Western Australia region from a director related entity for $75,000.
Annual Report
June 2022
44
Directors' Declaration
In accordance with a resolution of the directors of Resources & Energy Group Limited, the directors declare
that:
(a)
The financial statements and notes of the company are in accordance with the Corporations Act 2001,
including:
(i) giving a true and fair view of the company's financial position as at 30 June 2022 and of its
performance for the year ended on that date; and
(ii) complying with Accounting Standards and Corporations Regulations 2001, including compliance with
International Financial Reporting Statements as issued by the International Accounting Standards
Board as stated in Note 2 of the financial statements.
(b)
The Chief Executive Officer has declared that:
(i)
the financial records of the Company for the financial year have been properly maintained in
accordance with Section 286 of the Corporations Act 2001;
(ii)
the financial statements and notes for the financial year comply with the Accounting Standards; and
(iii) the financial statements and notes for the financial year give a true and fair view.
(c)
There are reasonable grounds to believe that the company will be able to pay its debts as and when they
become due and payable.
On behalf of the Board,
Mr Gavin Rezos
Chairman
Sydney, 30 September 2022
Annual Report
June 2022
45
1
RSM Australia Partners
Level 13, 60 Castlereagh Street Sydney NSW 2000
GPO Box 5138 Sydney NSW 2001
T +61 (0) 2 8226 4500
F +61 (0) 2 8226 4501
www.rsm.com.au
AUDITOR’S INDEPENDENCE DECLARATION
As lead auditor for the audit of the financial report of Resources & Energy Group Limited for the year ended 30
June 2022, I declare that, to the best of my knowledge and belief, there have been no contraventions of:
(i)
(ii)
the auditor independence requirements of the Corporations Act 2001 in relation to the audit; and
any applicable code of professional conduct in relation to the audit.
RSM AUSTRALIA PARTNERS
C J Hume
Partner
Sydney, NSW
Dated: 30 September 2022
THE POWER OF BEING UNDERSTOOD
AUDIT | TAX | CONSULTING
RSM Australia Partners is a member of the RSM network and trades as RSM. RSM is the trading name used by the members of the RSM network. Each member of the
RSM network is an independent accounting and consulting firm which practices in its own right. The RSM network is not itself a separate legal entity in any jurisdiction.
RSM Australia Partners ABN 36 965 185 036
Liability limited by a scheme approved under Professional Standards Legislation
46
RSM Australia Partners
Level 13, 60 Castlereagh Street Sydney NSW 2000
GPO Box 5138 Sydney NSW 2001
T +61 (0) 2 8226 4500
F +61 (0) 2 8226 4501
www.rsm.com.au
INDEPENDENT AUDITOR’S REPORT
To the Members of Resources & Energy Group Limited and its controlled subsidiaries
Opinion
We have audited the financial report of Resources & Energy Group Limited (the Company) and its subsidiaries
(the Group), which comprises the consolidated statement of financial position as at 30 June 2022, the
consolidated statement of profit or loss and other comprehensive income, the consolidated statement of changes
in equity and the consolidated statement of cash flows for the year then ended, and notes to the financial
statements, including a summary of significant accounting policies, and the directors' declaration.
In our opinion the accompanying financial report of the Group is in accordance with the Corporations Act 2001,
including:
(i) giving a true and fair view of the Group's financial position as at 30 June 2022 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 auditor's
report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
opinion.
Key Audit Matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of
the financial report of the current period. These matters were addressed in the context of our audit of the financial
report as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.
THE POWER OF BEING UNDERSTOOD
AUDIT | TAX | CONSULTING
RSM Australia Partners is a member of the RSM network and trades as RSM. RSM is the trading name used by the members of the RSM network. Each member of the
RSM network is an independent accounting and consulting firm which practices in its own right. The RSM network is not itself a separate legal entity in any jurisdiction.
RSM Australia Partners ABN 36 965 185 036
Liability limited by a scheme approved under Professional Standards Legislation
47
Key Audit Matter
How our audit addressed this matter
Carrying value of capitalised exploration and evaluation
Refer to Note 10 in the financial statements
As disclosed in note 10, the Group held capitalized
exploration and evaluation expenditure of $9,525,406
as at 30 June 2022 which represents a significant asset
of the Group.
We consider the carrying amount of these assets
under AASB 6 Exploration for and Evaluation of
Mineral Resources to be a key audit matter due to the
significant management
involved,
including:
judgments
• whether
the exploration and evaluation
spend can be associated with finding specific
mineral resources, and the basis on which
that expenditure is allocated to an area of
interest
•
the Group's ability and intention to continue
to explore the area
• which costs should be capitalised
•
the existence of any impairment indicators
(such as the potential that mineral reserves
and resources may not be commercially
viable for extraction, or that the carrying
value of the assets may not be recovered
through sale or successful development) -
and if so, those applied to determine and
quantify any impairment loss
• whether exploration activities have reached
the stage at which the existence of an
economically recoverable reserve may be
determined
Provision for site restoration obligations
Refer to Note 12 in the financial statements
The Consolidated Statement of Financial Position of
the Group includes a provision for site restoration of
$341,642 as at 30 June 2022. The group has
obligations to restore the land on which it has
conducted drilling activities. The provision is for future
costs associated with the rehabilitation activities and
requires significant judgement in respect of asset lives,
restoration being undertaken and
timing of
environmental legislation requirements.
This is considered as a key audit matter due to the
significant judgement involved and the materiality of the
balance.
Our audit procedures included the following:
• Considering the Group’s right to explore in the
relevant exploration area which included obtaining
and assessing supporting documentation such as
obtaining independent searches of the company’s
tenement holdings;
•
future cash
• Considering the Group’s intention to carry out
significant exploration and evaluation activity in the
relevant exploration area which
included an
assessment of
flow
the Group's
forecasts and enquired of management and the
Board of Directors as to the intentions and strategy
of the Group;
Assessing recent exploration activity in a given
exploration license area to determine if there are
any negative indicators that would suggest a
potential impairment of the capitalized exploration
and evaluation expenditure;
Assessing the commercial viability of results relating
to exploration and evaluation activities carried out in
the relevant license area; and
Assessing the ability to finance any planned future
exploration and evaluation activity.
•
•
Our audit procedures in relation to provision for site
restoration obligations included:
• Understanding management’s process to determine
the provision for restoration and ensuring it was
consistent with our understanding of the activities
associated with those tenements;
• Reviewing the cost elements used in the estimation
of rehabilitation of related tenements and ensuring
that appropriate supporting documents were
available to support the cost estimates;
• Checking the mathematical accuracy of the model
used to calculate the provision;
• Reviewing the reasonableness of the inflation rate,
the rehabilitation
discount rate and
cashflows assumptions used in the model;
timing of
48
Key Audit Matter
How our audit addressed this matter
Share Based Payments
Refer to Note 17 in the financial statements
During the year, the Group entered into the following
share-based payment arrangements:
issued
to
the
21,000,000 options were
Directors
11,000,000 options were
employees of the Company
•
•
•
16,000,000 options were issued to advisors
of the Company
Management have accounted for these arrangements
in accordance with AASB 2 Share-Based Payments.
We consider this to be a key audit matter because of:
•
•
•
•
the complexity of the accounting required to
value the instruments
the judgmental nature of inputs into the
valuation models, including the likelihood of
vesting conditions being met, and
the
appropriate valuation methodology to apply
the variety of conditions associated with each
instrument
the non-routine nature of the transactions
issued
to
the
• Reviewing the terms and conditions of the
•
•
Ensuring the movement in the provision has been
in accordance with Australian
for
accounted
Accounting Standards; and
Assessing the appropriateness of the disclosures in
the financial report.
Our audit procedures included, among others:
• Making enquiries of management, about the
the
the
rationale behind
nature of and
instruments issued;
instruments issued;
• Review the valuation methodology and inputs
into the models to ensure it is in compliance
with AASB 2;
•
Verifying the mathematical accuracy of the
underlying model;
• Critically evaluating the key assumptions used,
considering the market, the grant-date share
price and current-date share price,
the
expected volatility in the share price, the
vesting period, and the number of instruments
expected to vest;
• Recalculating the value of the share-based
payment expense to be recognised and the
reserve balance, for accuracy, factoring in any
cancellations, modifications, expiry, or vesting;
and
• Reviewing
the adequacy of
the relevant
disclosures,
in
respect of judgments made, in the financial
statements.
the disclosures
including
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 2022, but does not include the financial report and the
auditor's report thereon.
Our opinion on the financial report does not cover the other information and 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.
49
Responsibilities of the Directors for the Financial Report
The directors of the Company are responsible for the preparation of the financial report that gives a true and fair
view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such internal
control as the directors determine is necessary to enable the preparation of the financial report that gives a true
and fair view and is free from material misstatement, whether due to fraud or error.
In preparing the financial report, the directors are responsible for assessing the ability of the Group to continue as
a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of
accounting unless the directors either intend to liquidate the Group or to cease operations, or have no realistic
alternative but to do so.
Auditor's Responsibilities for the Audit of the Financial Report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from
material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion.
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance
with the Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements
can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably
be expected to influence the economic decisions of users taken on the basis of this financial report.
A further description of our responsibilities for the audit of the financial report is located at the Auditing and
Assurance Standards Board website at: https://www.auasb.gov.au/admin/file/content102/c3/ar2_2020.pdf
This description forms part of our auditor's report.
Report on the Remuneration Report
Opinion on the Remuneration Report
We have audited the Remuneration Report included in pages 9 to 12 of the directors' report for the year ended
30 June 2022.
In our opinion, the Remuneration Report of Resources & Energy Group Limited, for the year ended 30 June 2022,
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.
C J Hume
Partner
RSM Australia Partners
Sydney, NSW
30 September 2022
50
Security Holders' Information
Additional information included in accordance with the Listing Rules of the Australian Securities Exchange Ltd.
The information provided is current as of 7 September 2022.
1. Ordinary share holders
(a) Top 20 shareholders
The names of the 20 largest holders of ordinary shares as shown in the Company's share register are listed
below.
Name
Number of
Shares
% of Issued
Shares
HSBC Custody Nominees (Australia) Limited
Fontelina Pty Limited
JP Morgan Nominees Australia Pty Ltd
Arthur Phillip Nominees Pty Ltd
Citicorp Nominees Pty Limited
BNP Paribas Nominees Pty Ltd
Vivien Enterprises Limited
Vanavo Pty Limited
CS Fourth Nominees Pty Limited
Mrs Emma Bacci
Mrs Natalie Risinger
Hestian Pty Limited
Sanjur Pty Limited
Mr John Hancock
Guildfords Funds Management Pty Limited
Sharky Holdings Limited
Minerva Geological Services Pty Limited
Melty Pty Limited
Mr Lincoln James Topham & Mrs Pauline Margery Topham
Elton Holdings Pty Limited
Total top 20 holders
Other holders
Total ordinary shares on issue
(b) Shareholder analysis
68,916,342
39,920,000
35,024,774
45,260,255
17,628,747
14,862,208
14,353,700
9,171,905
6,923,580
6,497,150
6,497,150
5,400,000
5,596,747
4,750,000
4,162,611
4,000,000
3,995,385
3,015,088
3,005,700
3,000,000
13.8%
8.0%
7.0%
9.1%
3.5%
3.0%
2.9%
1.8%
1.4%
1.3%
1.3%
1.1%
1.1%
1.0%
0.8%
0.8%
0.8%
0.6%
0.6%
0.6%
301,981,342
197,824,447
499,805,789
60.4%
39.6%
100.0%
An analysis of the numbers of ordinary share holders by size of holding is shown below
Size of holding range
1
1,001
5,001
10,001
100,001 and
1,000
5,000
10,000
100,000
Over
-
-
-
-
Number
of holders
40
153
169
702
379
1,443
Percentage of
holders
2.8%
10.6%
11.7%
48.6%
26.3%
100.0%
Units held
8,122
462,912
1,503,991
28,328,690
469,502,074
499,805,789
There were 511 shareholders that held less than a marketable parcel of ordinary shares.
Annual Report
June 2022
51
Security Holders' Information
(c) Substantial shareholders
Holders of more than 5% of the ordinary shares who have lodged substantial shareholder notices are listed
below.
Name of shareholder
Richard Poole and family
Gaffwick Pty Limited
Ordinary
shares held
Percentage of total
ordinary shares on issue
67,987,302
68,213,334
13.6%
13.6%
(d) Voting rights
There are no restrictions on voting rights attached to the ordinary shares. On a show of hands every member
present in person shall have one vote and upon a poll, every member present or by proxy shall have one vote
every share held.
(e) Share buyback
There were no share buybacks during or subsequent to the end of the financial year.
2 Share options
The names of holders of more than 20% of each class of unlisted share options are shown below. Share
options do not have voting rights until converted into ordinary shares.
Class
Name of holder
Number of holders
Share options
issued
Percentage
held of each
class
L
M
N
P
Q
R
S
T
U
Employee options
Employee options
3VL Pty Ltd
Mr Mark Sandford
Others less than 20%
Holders all less than 20%
Employee options
Barclay Pearce Capital Pty Ltd
Employee & director options
Employee & director options
Guildfords Funds Management P
Karantzias Investments Pty Ltd
Spak Plus Pte Ltd
1
1
1
1
7
75
1
1
3
3
1
1
1
Total share options on issue
1,000,000
1,000,000
4,862,464
4,097,421
6,040,115
11,000,056
15,000,000
8,000,000
21,000,000
11,000,000
4,000,000
2,000,000
2,000,000
91,000,056
100.0%
100.0%
32.4%
27.3%
40.3%
100.0%
100.0%
100.0%
100.0%
100.0%
50.0%
25.0%
25.0%
Annual Report
June 2022
52