annual report 2011
Drill Discover Define
corporate directory
DIRECTORS
Paul Chapman (Chairperson)
Steven Olsen (Managing Director)
Richard Laufmann
Alister Maitland
COMPANY SECRETARY
Amber Rivamonte
PRINCIPAL and REGISTERED OFFICE
209 Dana Street
Ballarat Victoria 3350
SHARE REGISTRARS
Computershare Investor Services Pty Limited
Yarra Falls
452 Johnstson Street
Abbotsford Victoria 3067
AUDITORS
KPMG
147 Collins Street
Melbourne Victoria 3000
SITE OFFICES
5A First Street
Ardrossan South Australia 5571
86 King William Road
Goodwood South Australia 5034
BANKERS
ANZ Banking Group Limited
927 Sturt Street
Ballarat Victoria 3350
Ord Minett Limited
120 Collins Street
Melbourne Victoria 3000
CONTACT DETAILS
Rex Minerals Ltd
PO Box 626W
Ballarat West Victoria 3350
Telephone +61 (0) 3 5337 4000
Facsimile +61 (0) 3 5331 1776
Email info@rexminerals.com.au
operation location
LEGAL ADVISORS
Baker McKenzie
181 William Sreet
Melbourne Victoria 3000
SOUTH
AUSTRALIA
A
A U S T R A L I A
Wandearah
Pine Point
Adelaide
SOUTH
SOUTH
AUSTRALIA
A
AUSTRALIA
NEW SOUTH
WALES
VICTORIA
Drill Discover Define
annual report 2011
ABN 12 124 960 523
TABLE OF CONTENTS
Rex Minerals Ltd Annual Report for the year ended 30 June 2011
INTRODUCTION
LETTER FROM THE CHAIRMAN AND MANAGING DIRECTOR
REVIEW OF OPERATIONS
EXPLORATION PROJECTS
TENEMENTS SCHEDULE
DIRECTORS’ REPORT
STATEMENT OF FINANCIAL POSITION
STATEMENT OF COMPREHENSIVE INCOME
STATEMENT OF CHANGES IN EQUITY
STATEMENT OF CASH FLOWS
NOTES TO THE FINANCIAL STATEMENTS
DIRECTORS’ DECLARATION
LEAD AUDITOR’S INDEPENDENCE DECLARATION
INDEPENDENT AUDIT REPORT
ADDITIONAL SHAREHOLDER INFORMATION
1
2
3
4
15
16
34
35
36
37
38
60
61
62
64
Introduction
Rex Minerals Ltd (“Rex” or “the Company”) is an Australian minerals exploration and development company with large-
scale copper-gold projects on the Yorke Peninsula, South Australia.
In 2008 Rex discovered the Hillside copper-gold project beneath shallow cover rocks approximately 12 kilometres from the
port of Ardrossan. Since then the Company has completed three Mineral Resource estimates and in July 2011 released
details of a conceptual two-stage mine development plan with output at stage two reaching 70,000 tonne per annum of
copper. A pre-feasibilty study and further infill Resource definition drilling are now underway at the Hillside project.
Hillside is the first project in the Company’s plans to discover and develop multiple large-scale copper-gold deposits along
the Pine Point Fault on the Yorke Peninsula.
Highlights
Goals for 2012
Growing Resource – In the space of 18 months, dedicated Resource
definition drilling (with an average of 5 to 6 drill rigs) has produced
three Resource updates to the market, with the latest results
announced on 27 July 2011. The results recently announced defined
an Indicated and Inferred Mineral Resource totalling 217 million
tonnes @ 0.7% copper, 0.2g/t gold and 12.4% iron. This equates to
1.5 million tonnes of copper and 1.4 million ounces of gold, which is
more than double the maiden Resource estimate which was made
12 months earlier.
Target Size – Rex has drilled an estimated 80% of the area defined
at Hillside based on the magnetic feature that has been used to
target copper mineralisation. The total target size for Hillside now
stands at between 1.6 and 2.1 million tonnes of contained copper
making it one of Australia’s largest copper projects.
Economic Studies – A conceptual study, completed in July 2011,
identified a number of mining options and cost parameters based on
the existing Mineral Resource at Hillside. The study shows the
potential for a project with a 12 year mine life and copper
production increasing to over 70,000 tonnes per annum plus
additional gold and magnetite by-products.
Equity Raising – The Company successfully raised $87 million in
October 2010, providing Rex with funding to deliver both a pre-
feasibility, subsequent feasibility study and additional capacity to
test the many large-scale copper-gold targets in close proximity
to Hillside.
> Resource – Complete Resource drilling at
Hillside focussing on two key outcomes:
(cid:127) Detailed ore definition for the purpose
of upgrading the Minerals Resource into
a Reserve;
(cid:127) Expand on the existing Resource,
targeting a range of 1.6Mt to 2.1Mt.
> New Discovery – Effectively test the highest
priority targets generated regionally on the
Yorke Peninsula.
> Economics – Complete the Hillside pre-
feasibility study, targeting production of more
than 70,000 tonnes per annum of copper and
associated by-products of gold and magnetite
for a minimum 10 year mine life.
> Financing – Commence assessing financing
options for Hillside.
> Organisation – Plan for transition of the
organisation from explorer to developer
to producer.
Page 1
A 209 Dana Street Ballarat
Victoria 3350 Australia
T (03) 5337 4000
F (03) 5331 1776
P PO Box 626W Ballarat West
Victoria 3350 Australia
E info@rexminerals.com.au
W www.rexminerals.com.au
minerals ltd
ABN 12 124 960 523
LETTER FROM THE CHAIRMAN AND MANAGING DIRECTOR
For the year ended 30 June 2011
Dear Fellow Shareholder,
Rex Minerals Ltd (“Rex”) has achieved a number of milestones this year which has left the Company strongly placed despite
the financial volatility and turmoil which has troubled world markets in recent months.
Crucially, Rex retains 100% ownership of its flagship projects on South Australia’s Yorke Peninsula and is fully funded all the
way through to the bankable feasibility stage. The Hillside conceptual study recently announced by Rex represents the base line
against which all future discoveries will be measured and potentially developed.
The importance of Rex’s $87 million capital raising in late 2010 has been underscored recently as world equity markets have
become more volatile for raising funds. Funding options often change over time and Rex scaled its last capital raising to ensure
the Company could finance its flagship projects all the way through to a development decision. As pre-feasibility studies and
subsequent bankable feasibility studies are completed, more financing options will become available to the Company.
Notwithstanding market volatility, we remain positive about the future for copper and iron ore as these metals are required for
growth and gold is increasingly important as a portfolio diversifier.
Rex has been drilling out the Hillside deposit for 18 months and in that time has discovered 1.5 million tonnes of copper and
1.4 million ounces of gold. This is a remarkable discovery rate. Maintaining the gruelling work schedule required to deliver this
outcome is a credit to the Rex team. It is the substantial Resource base and further exploration targets, which have been
defined in the area near Hillside, that give Rex substantial opportunities for growth and development.
At Hillside, Rex is now at the stage where decisions regarding the future development plan need to be made. As part of this
process, Rex completed a conceptual study, which is the first look at the opportunities and issues that need to be addressed
before a more detailed mine plan (feasibility studies) can commence. The results from this work were very encouraging and
highlighted a number of key features about Rex’s flagship project. The initial mine plan identified a two stage process to reach
over 70,000 tonnes per annum copper with a total mine life of 12 years. The metallurgical test work indicated that the copper-
gold and magnetite concentrates which could be produced at Hillside are low in impurities and are potentially attractive to a
large number of international customers. The study results also indicated that the Hillside project will have competitive cash
costs, estimated to be close to the world average of $1.12 after by-product credits (GFMS Copper Survey 2011 report).
It is important to recognise that this preliminary assessment of the mine plan at Hillside is restricted to the information that
was available in the early part of 2011. Since that time, Rex has continued to identify further copper extensions at Hillside and
already, growth opportunities above and beyond the conceptual study have been identified. Further exploration results and
other opportunities will all become part of the Hillside pre-feasibility study which is due for completion in mid 2012.
Aside from the Hillside project, considerable evidence is building for multiple large-scale copper-gold deposits to exist in the
region. The regional potential remains an exciting part of the growth opportunity for the Company and Rex will continue to
pursue these opportunities whilst advancing the Hillside feasibility studies. We maintain our strategy of delivering value to
shareholders with both exploration and development success.
On behalf of the board, we would like to thank our employees for their efforts and achievements during the year. We would also
like to acknowledge the support of our suppliers and our shareholders for their continued confidence in Rex.
Rex is also proud to be a member of the community on the Yorke Peninsula and we look forward to increasing our contribution
to the community and many other businesses and services in the region as the project develops.
Yours sincerely,
Paul Chapman
Chairman
Steven Olsen
Managing Director
REX MINERALS LTD
REVIEW OF OPERATIONS – for the year ended 30 June 2011
Rex Minerals Ltd (“Rex”) has completed the following important milestones over the year.
October 2010
Capital raising of $87 million at a share price of $2.50.
December 2010
Announcement of updated Mineral Resource Estimate of 170Mt @ 0.7% copper and 0.2g/t gold.
December 2010
Announcement of metallurgical test work results which show high copper recoveries (94%) for
the dominant ore type at Hillside.
June 2011
June 2011
Completed Resource definition drilling for a new Mineral Resource estimate. Updated Inferred
and Indicated Mineral Resource estimate of 217Mt @0.7% copper, 0.2g/t gold and 12.4% iron
(announced on 27 July 2011).
Completed work on conceptual mining studies. Results announced on 27 July 2011 defining a 12
year mine plan with production ramping up to over 70,000 tonnes of copper per annum, 50,000
ounces of gold and 1.3 million tonnes of iron ore.
REX MINERALS LTD
EXPLORATION PROJECTS – for the year ended 30 June 2011
HILLSIDE COPPER-GOLD PROJECT, YORKE PENINSULA, SOUTH AUSTRALIA
The Hillside project (Figure 1) was the first target to be drill tested by Rex on the Yorke Peninsula soon after its listing on
the ASX in 2007. Early indications of significant copper mineralisation were intersected in June 2008 and the discovery of
large-scale copper mineralisation confirmed in January 2009.
Figure 1: Location diagram of the Hillside Project and Rex’s exploration licences on the Yorke Peninsula,
South Australia.
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REX MINERALS LTD
EXPLORATION PROJECTS (continued) – for the year ended 30 June 2011
After the initial discovery of copper mineralisation at Hillside it was shown that the copper had a close relationship with
the mineral magnetite, and that as a result, a detailed magnetic survey could be used to effectively “see through” the
shallow cover rocks to uncover the extent of the copper mineralisation at Hillside. A detailed magnetic survey was
subsequently completed in August 2009, and drill testing of the many detailed magnetic features from this survey at
Hillside continued throughout the remainder of 2009.
In late 2009 Rex raised $42 million leading to the commencement of a large resource drilling campaign at Hillside. The
Resource definition drilling has been ongoing since January 2010, with the latest Mineral Resource estimate published on
27 July 2011. The current Minerals Resource estimate is summarised in Table 1 below.
Table 1: Hillside Inferred and Indicated Mineral Resource summary
Zone
Supergene
Oxide
Resource
Category
Indicated
Inferred
Supergene
Sulphide
Indicated
Inferred
Indicated
Inferred
Primary
Sulphide
Total
Tonnes
(Mt)
Copper
(%)*
3
15
1
7
31
160
217
0.6
0.6
0.7
0.7
0.6
0.7
0.7
Gold
(g/t)
0.2
0.2
0.3
0.2
0.2
0.2
0.2
Iron
(%)
11**
12.1
Contained
Copper (t)
Contained
Gold (oz)
18,000
19,290
90,000
96,452
12.9**
7,000
9,645
13.7
49,000
45,011
13.2**
186,000
199,335
12.3
1,120,000
1,028,824
12.4
1,500,000
1,400,000
*Copper Resources reported above 0.2% cut-off grade.
*Grade is rounded to one significant figure in accordance with the guidance of the JORC Code 2004.
** Iron component of the Indicated Resource is classified as an Inferred Resource.
Please refer to the competent person's report at the end of this section.
Figure 2 shows the growth of the Hillside Resource between July 2010 and July 2011, as well as the total target range for
the Hillside project. Average assay results have remained relatively consistent throughout the drilling campaign and the
total target size at Hillside lies between 1.6Mt and 2.1Mt of copper (represented by a range of 260Mt to 300Mt at a
grade range of 0.6% to 0.7% copper and similar gold grades)1. The range identified as the total target for the Hillside
Project is based on the sum of the existing Resource plus the exploration target range associated with the remaining
magnetic anomaly that is yet to be drill tested.
Given the significant presence of magnetite throughout the Hillside deposit, metallurgical studies were completed to assess
the potential for an iron ore product to be produced. The results were favourable and indicated that an iron ore
concentrate could be produced cheaply with a high iron content (>65%) and with low impurities. Therefore, in July 2011,
an assessment of the iron content for the Hillside deposit was given for the first time. However, the iron content itself is not
very meaningful without understanding what percentage of iron is actually recoverable into an iron ore concentrate. To
give these results some more meaning, an assessment of the copper equivalent grade is shown in Table 2, which allows for
the recoverable copper, gold and iron, based on the metallurgical test work completed at Hillside. MinEx Consulting Pty
Ltd were engaged to review the copper equivalent grade at Hillside in comparison with the copper equivalent grade for all
large scale open pit Resources around the world. This comparison is shown in Figure 3.
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REX MINERALS LTD
EXPLORATION PROJECTS (continued) – for the year ended 30 June 2011
Figure 2: Hillside Resource growth in copper metal (Mt) and total target range1.
Table 2: Hillside Mineral Resource, grade, recovery and copper equivalent results
Copper
Gold
Iron
Total
Tonnes
(Mt)
217
217
217
Grade
0.7%
0.2 g/t
12.4%
Recovery
(%)
Copper
Equivalent
# The iron Resource estimate is recovered iron in
an iron ore concentrate
94%
77%
52.9%
0.66
0.08
0.16#
0.9
Price Assumptions: Copper price = 3.20 US$/lb,
Gold price = 1200 US$/ounce, Magnetite price =
120 US$/tonne (see Table 4 in Rex Conceptual
Study announcement, 27 July 2011 for more
detail on price assumptions).
Please refer to the competent person's report at the
end of this section.
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REX MINERALS LTD
EXPLORATION PROJECTS (continued) – for the year ended 30 June 2011
Figure 3: Size and grade of the remaining Resources for operating open pit copper mines in the World*, ranked by
copper-equivalent (Cu-Eq) grade. Source: MinEx Consulting July 2011 based on September 2010 Resource data.
*
Refers to operating mines (and mines currently under construction) with a remaining resource >500kt copper. Copper-equivalent grade based on
$3.20/lb copper and assumes 1% copper = 3.27% zinc = 0.32% molybdenum = 0.23% cobalt = 0.54 tonnes iron ore = 2.10 g/t gold =
144 g/t silver.
The Hillside project is one of the largest copper discoveries to have been made within Australia in the past decade.
The project has a large Resource base that is anticipated to grow over the coming years. The current Hillside Mineral
Resource estimate covers approximately 80% of a magnetic anomaly which has been used as the main targeting tool
for the definition of copper at Hillside (Figure 4). Figure 5 shows the size of the current Mineral Resource at Hillside,
along with the total target size1 postulated by Rex compared with other major deposits.
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REX MINERALS LTD
EXPLORATION PROJECTS (continued) – for the year ended 30 June 2011
Figure 4: Magnetic map of the
Hillside project, showing
location of the Inferred and
Indicated Resources and
remaining area to be drill
tested (Target Area).
Figure 5: Hillside Total
Resource and Total Target
Size1 in comparison to other
major copper deposits.
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REX MINERALS LTD
EXPLORATION PROJECTS (continued) – for the year ended 30 June 2011
Hillside Copper-Gold Project – Feasibility Studies
In conjunction with the Resource drilling at Hillside, Rex has undertaken a number of research projects that have formed
the basis of a conceptual study which is designed to identify the best development options for the Hillside project.
The conceptual study is the first review of the potential opportunities and risks associated with a new mining operation2.
The results from this review provide a guide for a new mining operation, with further scope to optimise the base case
estimates as more detail is gathered during the pre-feasibility study stage.
A detailed update from the conceptual study was announced by Rex on 27 July 2011 and includes such items as capital
and operating infrastructure associated with a mine plan at Hillside. In essence, the optimal production rate identified
during the study is approximately 15Mt per annum. Key metrics for the proposed open pit (Figure 6) at this mining rate
are summarised in Table 3. In the concept ual study, Rex considered a number of options for staging the production rate up
to this level to minimise the up-front capital. During the pre-feasibility study Rex will further investigate the production
schedule identified in Table 3 along with options which allow for the project to run at the currently interpreted optimal
production rate of 15Mt for a minimum of 10 years.
Early metallurgical test work identified that the Hillside deposit can produce a saleable copper-gold concentrate with high
copper recoveries (94%), using a conventional floatation plant. The presence of significant magnetite and the proximal
location of port facilities also prompted Rex to investigate the potential to produce a saleable iron-ore concentrate from
the Hillside deposit. This would be similar to the process at the Ernest Henry copper-gold mine in Queensland. The results
indicated that the processing and recovery of a magnetite concentrate could add significant value to the project. Therefore,
the optimised mining and processing results at Hillside incorporate the ability to recover both a copper-gold concentrate
and a magnetite (iron ore) concentrate.
Figure 6: Proposed open pit (final stage two) defined in the Hillside conceptual study, with the modelled Mineral
Resources shown within the open pit design.
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REX MINERALS LTD
EXPLORATION PROJECTS (continued) – for the year ended 30 June 2011
Table 3: Summary results from the conceptual study completed on the Hillside Project.
Mine Plan
Stage 1
6 years
Stage 2
6+ years
Copper Production (pa)
40,000 to 45,000 tonnes
70,000 to 80,000 tonnes
Gold Production (pa)
35,000 to 45,000 ounces
50,000 to 70,000 ounces
Iron Ore Concentrate (pa)
700,000 to 900,000 tonnes
1.3 to 1.6 million tonnes
Processing Plant Capacity (pa)
7.5 to 9 million tonnes
15 to 18 million tonnes
Pre-Strip
Strip Ratio
44 million tonnes
3.9:1 to 4.2:1
69 million tonnes
4.2:1 to 4.8:1
Start up capital costs
AUD$650 to $800 million
Funded from stage one cash flow
Table 4: Summary of operating cost estimates (all in AUD$) based on the Hillside conceptual study.
Cost Input
Stage 1
Stage 2
Mining Dilution
13% to 15%
13% to 15%
Mining cost
Processing Cost
Administration
$2.6/t
$11.6/t
$2.7/t
$2.8/t
$9.9/t
$1.5/t
The options for development identified in the conceptual study are only a small subset of the total portfolio of copper
potential that Rex considers will be available for development in the future. Exploration drilling at Hillside since July
2011 has already identified significant opportunities to increase the level of production in the early stages of mining. In
addition, drilling results from regional targets including Equis, Parara and other historical copper mines, indicate that
copper mineralisation is extensive underneath the cover rocks throughout the region.
It remains the long held belief at Rex that the copper potential in the area could lead to the development of a mining
operation that produces over 100,000 tonnes per annum of copper plus associated gold and magnetite for decades into the
future. From the time Rex commenced drilling on the Yorke Peninsula in 2007 this has been the vision of the Company and
our efforts to date have reinforced the potential to deliver this outcome.
Based on the framework established in the conceptual study, Rex has commenced the pre-feasibility study at Hillside. This
work program is anticipated to take up to 12 months before progressing into a definitive feasibility study, where the key
details will be defined and the approvals process will commence.
Rex anticipates that the approvals process and a definitive feasibility study will be completed in 2013 before the
commencement of development for stage one. Construction is anticipated to take 18 months, with production targeted to
commence in 2015.
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REX MINERALS LTD
EXPLORATION PROJECTS (continued) – for the year ended 30 June 2011
PINE POINT COPPER BELT, YORKE PENINSULA, SOUTH AUSTRALIA
Rex first commenced exploring the Yorke Peninsula with an interpretation that there could be multiple copper-gold
deposits underneath a “hidden landscape”. This has initially proven to be correct with the Hillside discovery, which was the
first effective test of this hypothesis.
The research undertaken at Hillside since its discovery has confirmed that it was formed at the same time as the
Prominent Hill and Olympic Dam deposits adding further weight to the interpretation that there could be other similar
deposit types in the basement rocks on the Yorke Peninsula.
These deposits have a very strong relationship with iron, which is typically in the form of either magnetite or haematite.
It is for this reason that both magnetic and gravity surveys are a particularly important method of discovering the likely
position of the largest deposits in the region. In recognition of this information, Rex completed some high resolution
magnetic and gravity surveys in 2009 and 2010 to understand where potentially the largest deposits of this type (typically
referred to as an Iron-Oxide-Copper-Gold or IOCG deposits) may occur. The results from this work indicated that there are
many targets which have a larger response than Hillside and represent very exciting new targets for Rex, some of which
are very close to Hillside, including Equis, Ethel and Ranald (see Table 5 and Figure 7).
Based on ranking the targets from the gravity and magnetic anomalies, Hillside would rank approximately sixth.
Table 5: Project ranking based on modelled gravity and magnetic information gathered by Rex in 2010.
Ranking
Target Name
Modelled Magnetic Size
and Intensity
Modelled Gravity Size
and Intensity
1
2
3
4
5
6
7
8
9
10
11
12
Equis Central
Ethel
Target 13
Ranald East
Parara North
Hillside
Parara Central
Parara South
Ranald 16
Equis South
Port Julia
Hillside West
High
High
High
High
Med/High
Med/High
Med/High
Med
Med
Med
Med
Med
High
High
Med/High
Low
Med
Med
Low
Med/High
Med
Med
Med
Med/Low
As part of the process for gaining access to drill test the targets on the Yorke Peninsula, Rex has been listening to and
working with various landholders in the region. As a result, Rex has revised its access and compensation agreement and
implemented additional innovative procedures to further reduce the impact that exploration may have on the land. Rex is
committed to developing long term relationships in the region and will continue to maintain an open dialogue with
landholders to ensure that Rex’s exploration activities will continue to benefit all stakeholders on the Yorke Peninsula.
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REX MINERALS LTD
EXPLORATION PROJECTS (continued) – for the year ended 30 June 2011
Figure 7: High priority copper-gold targets located on the Pine Point Copper Belt, many of which contain more
substantial gravity and magnetic anomalies than Hillside.
COMPETENT PERSONS REPORT
The information in this report that relates to Exploration Results or Mineral Resources is based on information compiled
by Mr Patrick Say who is a Member of the Australasian Institute of Mining and Metallurgy and is a full time employee of
Rex Minerals Ltd. Mr Say has sufficient experience which is relevant to the style of mineralisation and type of deposit
under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004
Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr Say
consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.
1
2
The total potential and grade is conceptual in nature. There has been insufficient exploration to define a Mineral Resource in excess of that currently
announced, and while Rex has confidence in this target range statement, it is uncertain if further exploration will result in the determination of
additional Mineral Resources.
The results contained within the 27 July 2011 announcement from the Hillside conceptual study contain “forward-looking statements”. All
statements other than those of historical facts included in this announcement are forward-looking statements. Where the Company expresses or
implies an expectation or belief as to future events or results, such expectation or belief is expressed in good faith and believed to have a
reasonable basis. However, forward-looking statements are subject to risks, uncertainties and other factors, which could cause actual results to
differ materially from future results expressed, projected or implied by such forward-looking statements. Such risks include, but are not limited to,
copper and other metals price volatility, currency fluctuations, increased production costs and variances in ore grade or recovery rates from those
assumed in mining plans, as well as political and operational risks and governmental regulation and judicial outcomes. The Company does not
undertake any obligation to release publicly any revisions to any “forward-looking statement”.
TENEMENT SCHEDULE – for the year ended 30 June 2011
Tenement
Locality
Lease Status
Area Type
Current Area
Grant Date
EL3875
EL3874
EL4514
EL3876
EL3459
EL3418
Moonta South
Granted
Moonta South
Granted
Moonta South
Granted
Wandearah
Wandearah
Cowell
Granted
Granted*
Granted*
km²
km²
km²
km²
km²
km²
416
1262
24
127
81
85
02/08/2007
02/08/2007
10/06/2010
02/08/2007
29/11/2005
16/09/2005
*These licences are currently being renewed with the Department of Primary Industries and Resources South Australia (PIRSA).
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DIRECTORS’ REPORT
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REX MINERALS LTD
DIRECTORS’ REPORT – for the year ended 30 June 2011
The Directors present their report together with the financial report of Rex Minerals Limited (“the Company”) and its
subsidiaries (the “Group” or “Rex”), and the Group’s interest in associates and jointly controlled entities for the financial
year ended 30 June 2011 and the auditors’ report thereon.
1. DIRECTORS
The Directors of the Company at any time during or since the end of the financial year are:
Name, qualifications and
independence status
Mr Paul Chapman
Independent Chairperson
(B.Comm, ACA, Grad.Dip.
Tax, MAICD, MAusIMM)
Experience, special responsibilities and other directorships
Mr Paul Chapman is a chartered accountant and has over 25 years resources
experience gained in Australia and the US. He has worked in a number of commodity
businesses including gold, nickel, manganese, bauxite/alumina and oil/gas.
Mr Chapman has held senior management roles in public companies of various sizes
and is Chairman of ASX listed explorer Encounter Resources Ltd and listed gold
producer Silver Lake Resources Ltd. Director since 2007.
Mr Richard Laufmann
Independent Non-Executive
Director
(B.Eng (Mining), MAusIMM,
MAICD)
Mr Richard Laufmann is a mining engineer with a proven track record in the resources
sector both in Australia and overseas.
He was Managing Director of Ballarat Goldfields NL from 2002 until 2007, at which
time Ballarat Goldfields merged with Lihir Gold Limited. Mr Laufmann also previously
led WMC Resources Limited’s Gold Business as General Manager – Operations. His
extensive operational experience includes three years as General Manager of St Ives
Gold in Western Australia. Mr Laufmann is currently the Managing Director of Indophil
Resources, an ASX listed company operating in the Philippines. Director since 2007.
Mr Steven Olsen
Managing Director
(B.Sc.(Hons), M.Sc.(MinEx),
Grad.Dip (F&I), MAusIMM)
Mr Steven Olsen has over 18 years experience in the resources industry with a
background of fourteen years working as a mine geologist and exploration geologist,
predominantly in Western Australia and Canada, on nickel and gold deposits. Mr Olsen
has had continued exploration success for the discovery of nickel, gold and copper
mineralisation throughout his career.
Mr Olsen’s qualifications include a B.Sc(Hons) from the University of Melbourne,
Masters in Mineral Exploration from Queens University, Ontario and a Graduate
Diploma of Applied Finance and Investment from the Securities Institute of Australia.
Mr Olsen is a Non-Executive Director of White Rock Minerals Ltd. Director since 2007.
Mr Alister Maitland
Independent Non-Executive
Director
(B.Com, FAICD, FAIM,
SF Fin)
Mr Maitland is a former Executive Director of the ANZ Banking Group. A background
in international finance whose banking experience extended beyond Australasia to
cover Asia, the Sub Continent, the Middle East, Europe and America. His professional
experience has included global business expansion, internal and external consulting,
treasury projects and international political agendas. As Chief Executive of ANZ Bank
for New Zealand he was responsible to the local board for the countries operations.
He has been a non-executive director of a number of publicly listed ASX companies
and Government bodies covering a wide range of activities including property services,
mining, banking, asset management and health. He is a former chairman of Ballarat
Goldfields NL and director of Lihir Gold Ltd. Currently a Director of Malayan Banking
Berhad (Maybank) headquarted in Kuala Lumpur. Director since 2011.
2. COMPANY SECRETARY
Ms Amber Rivamonte CPA, B.Bus (Acc) was appointed to the position of Company Secretary and CFO in July
2007. Ms Rivamonte was on 12 months leave during 2009 and returned from this leave in January 2010, to
resume her role as Company Secretary. Ms Rivamonte is a CPA and has over 18 years experience in the financial
management of publicly listed exploration companies. She has previously held the role of company secretary and
chief financial officer for Ballarat Goldfields NL and company secretary for Indophil Resources NL. Ms Rivamonte
is currently the Company Secretary of White Rock Minerals Ltd.
Page 17
REX MINERALS LTD
DIRECTORS’ REPORT (continued) – for the year ended 30 June 2011
3. DIRECTORS’ MEETINGS
The number of Directors’ meetings and number of meetings attended by each of the Directors of the Company
during the financial year are:
Director
Board Meetings
Audit Committee Meetings
Mr Paul Chapman
Mr Richard Laufmann
Mr Steven Olsen1
Mr Alister Maitland2
A
12
11
12
–
B
12
12
12
–
A
2
2
2
–
B
2
2
2
–
A – Number of meetings attended
B – Number of meetings held during the year whilst the Director held office.
1. Mr Olsen is not a member of the Audit Committee, but is invited and attends meetings as appropriate.
2 Mr Maitland was appointed Director on 16 September 2011 and was not a Director during the financial year.
Susequent to year end, a Remuneration Committee has been established following Rex’s entry into the ASX 300,
as a result no formal Remuneration Committee meetings were held during the period. However, the Rex Board had
processes in place during the period which addressed matters which would otherwise be considered by a
Remuneration Committee.
4. CORPORATE GOVERNANCE STATEMENT
Rex has adopted comprehensive systems of control and accountability as the basis for the administration of
corporate governance. The Board is committed to administering the policies and procedures with openness and
integrity, pursuing the true spirit of corporate governance commensurate with Rex’s needs. To the extent they are
applicable, Rex has adopted the Principles of Good Corporate Governance Recommendations incorporating the
2010 Amendments as published by ASX Corporate Governance Council. As Rex’s activities develop in size, nature
and scope, the size of the Board and implementation of additional corporate governance structures will be given
further consideration.
In addition to this and consistent with ASX Listing Rule requirements, Rex has a policy concerning trading in its
shares by Directors and other designated persons. A copy of that Trading Policy is available on Rex’s website.
Page 18
R e x M i n e r a l s L t d > A N N U A L R E P O R T 2 0 1 1 <
REX MINERALS LTD
DIRECTORS’ REPORT (continued) – for the year ended 30 June 2011
4. CORPORATE GOVERNANCE STATEMENT (continued)
The following table summarises Rex’s position in regard to Corporate Governance.
Recommendation
Comment
4.1
Lay solid foundations for management and oversight
4.1.1 Companies should
establish the functions
reserved to the Board and
those delegated to senior
executives and disclose
those functions.
The Board recognises the importance of distinguishing between the respective
roles and responsibilities of the Board and management. The respective roles
and responsibilities of the Board and the Managing Director are set out in
Rex’s Board Charter.
The primary responsibility of the Board is to protect and advance the interest of
Shareholders. To fulfil this role, the Board has overall responsibility for
developing and approving Rex’s corporate strategy and monitoring
implementation of the strategy, appointing the Managing Director, monitoring
senior executives’ performance and approving Rex’s risk and audit framework.
The Board is also responsible for Rex’s general corporate governance matters,
including matters such as disclosures and the appointment and monitoring of
any committees set up by the Board.
The Managing Director has primary responsibility to the Board for the affairs
of Rex. The Managing Director’s responsibilities include implementing and
monitoring (together with the Board) the strategic and financial plans for Rex,
managing the appointment of senior executive positions, being the primary
channel of communication and point of contact between the senior executives
and the Board, providing strong leadership to, and effective management of, Rex
and otherwise carrying out the day to day management of Rex.
This recommendation is also satisfied in as much as should a new Director be
appointed, Rex’s Board Charter and other corporate governance documentation
together with updated financial statements will be given to the new Directors
together with a formal letter of appointment which will set out details in respect
of, amongst other matters:
> Rex’s financial, strategic, operational and risk management position;
> each Director’s rights, duties and responsibilities; and
> the role of the Board and senior executives
4.1.2 Companies should disclose
the process for evaluating
the performance of senior
executives.
Rex’s goals for the year are set out in the Annual Report and these are used as
the basis for evaluating performance of senior executives. Performance
evaluations are undertaken annually, in June, by the Managing Director. The
Managing Director’s performance evaluation is also undertaken annually, in
June, by the Board.
4.1.3 Companies should provide
the information indicated
in the Guide to reporting
on Principle 1.
It is intended that:
> an explanation of any departure from Recommendations 4.1.1, 4.1.2 or
4.1.3 will be included in the corporate governance statement in the Annual
Report; and
> the Annual Report will disclose whether a performance evaluation for senior
executives has taken place in the reporting period and whether it was in
accordance with the process disclosed.
Page 19
REX MINERALS LTD
DIRECTORS’ REPORT (continued) – for the year ended 30 June 2011
4. CORPORATE GOVERNANCE STATEMENT (continued)
Recommendation
Comment
4.2
Structure the Board to add value
4.2.1 A majority of the Board should
be independent Directors.
This recommendation is satisfied.
4.2.2 The Chair should be an
This recommendation is satisfied.
independent Director.
4.2.3 The roles of Chair and Chief
This recommendation is satisfied.
Executive Officer should not be
exercised by the same individual.
4.2.4 The Board should establish a
nomination committee.
The Board has not adopted a charter relevant to the specific functions of a
nomination committee. Given the size of Rex and the Board, the Directors
consider that any efficiencies achieved by the establishment of a nomination
committee would be minimal, thereby not making its establishment cost
effective. Rex has Board processes in place which raise issues that would
otherwise be considered by a nomination committee.
4.2.5 Companies should disclose the
process for evaluating the
performance of the Board, its
committees and individual
Directors.
The Directors consider that due to the size of Rex and its Board, such a
formal review procedure is not appropriate at this point in time and has
instead adopted a self evaluation process to measure its own performance.
This recommendation is satisfied in as much as the details have been
included in the Annual Report and the Board Charter.
4.2.6 Companies should provide the
The following material is included in the Annual Report:
information indicated in the
Guide to reporting on
Principle 2.
> the skills, experience and expertise relevant to the position of Director
held by each Director in office at the date of the Annual Report;
> the names of the Directors considered by the Board to constitute
independent Directors and Rex’s materiality thresholds;
> the existence of any of the relationships listed in Box 2.1 of the Guide
(regarding director independence) and an explanation of why the Board
considers a Director to be independent, notwithstanding the existence of
those relationships;
> a statement as to whether there is a procedure agreed by the Board for
Directors to take independent professional advice at the expense of Rex;
> a statement as to the mix of skills and diversity for which the Board is
looking to achieve in membership of the Board;
> the period of office held by each Director in office at the date of the
Annual Report;
> whether a performance evaluation for the Board, its committees and
directors has taken place in the reporting period and whether it was in
accordance with the process disclosed; and
> an explanation of any departures from Recommendations 4.2.1, 4.2.2,
4.2.3, 4.2.4, 4.2.5 or 4.2.6.
The following material is publicly available on Rex’s website in a clearly
marked corporate governance section:
> the Board’s policy and procedure for the selection and appointment
of directors.
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REX MINERALS LTD
DIRECTORS’ REPORT (continued) – for the year ended 30 June 2011
4. CORPORATE GOVERNANCE STATEMENT (continued)
Recommendation
Comment
4.3
Promoting ethical and responsible decision making
4.3.1 Companies should establish a code
of conduct and disclose the code
or a summary of the code as to:
> the practices necessary to
maintain confidence in the
Company’s integrity;
> the practices necessary to take
into account their legal obligations
and the reasonable expectations of
their stakeholders; and
> the responsibility and
accountability of individuals for
reporting and investigating reports
of unethical practices.
4.3.2 Companies should establish a
policy concerning diversity and
disclose the policy or a summary
of that policy. The policy should
include requirements for the
Board to establish measurable
objectives for achieving gender
diversity and for the Board to
assess annually both the objectives
and progress in achieving them.
4.3.3 Companies should disclose in each
Annual Report the measurable
objectives for achieving gender
diversity set by the Board in
accordance with the diversity
policy and progress towards
achieving them.
4.3.4 Companies should disclose in each
annual report the proportion of
women employees in the whole
organisation, women in senior
executive positions and women on
the Board.
This recommendation is satisfied. Rex’s Code of Conduct sets out Rex’s
expectations for the conduct of Rex’s Directors, senior executives and
employees, including in relation to business conduct, personal and
professional conduct (such as confidentiality, personal behaviour and
respect for others).
This recommendation is satisfied. Rex's Code of Conduct sets out Rex's
policy concerning diversity. In summary, Rex's policy concerning diversity
is as follows:
Rex recognises that diversity is an economic driver of competitiveness
for companies and it strives to promote an environment and culture
conducive to the appointment of well qualified persons so that there is
appropriate diversity to maximise the achievement of corporate goals.
The objectives for achieving diversity are included in the corporate
governance statement in the Annual Report. In order to promote gender
diversity, Rex will engage in reviews and reporting to the Board about
the proportion of women at Rex and strategies to address diversity. Rex
intends to recruit the most qualified persons for each position and
considers persons from a diverse pool of qualified candidates.
The objectives for achieving diversity are included in the corporate
governance statement in the Annual Report.
This recommendation is satisfied. At 30 June 2011, women made up
28% of the total workforce; and 38% of senior executives. There are
currently no women on the Board of Rex.
4.3.5 Companies should provide the
information indicated in the Guide
to reporting on Principle 3.
The following material is publicly available on Rex’s website in a clearly
marked corporate governance section:
> any applicable code of conduct which incorporates the diversity policy.
Page 21
REX MINERALS LTD
DIRECTORS’ REPORT (continued) – for the year ended 30 June 2011
4. CORPORATE GOVERNANCE STATEMENT (continued)
Recommendation
Comment
4.4
Safeguard integrity in financial reporting
4.4.1 The Board should establish an
This recommendation is satisfied.
Audit Committee.
4.4.2 The Audit Committee should be
structured so that it:
> Consists only of non-executive
Directors;
> Consists of a majority of
independent Directors;
> Is chaired by an independent
Chair who is not chair of the
Board;
> Has at least 3 members
The members of the Audit Committee are Alister Maitland, Paul
Chapman, and Richard Laufmann, who are all independent Directors.
Alister Maitland is an independent Chair of the Audit Committee (and
he is not Chair of the Board). The Directors consider that the Audit
Committee is of sufficient size, independence and technical expertise to
discharge its mandate effectively.
4.4.3 The Audit Committee should have
This recommendation is satisfied.
a formal charter.
4.4.4 Companies should provide the
information indicated in the Guide
to reporting on Principle 4.
The following material is included in the corporate governance statement
in the Annual Report:
> the names and qualifications of those appointed to the audit
committee and their attendance at meetings of the committee, or,
where a company does not have an audit committee, how the
functions of an audit committee are carried out
> the number of meetings of the audit committee (contained within the
Directors’ Report)
> explanation of any departures from Recommendations 4.4.1, 4.4.2,
4.4.3 or 4.4.4
The following material is made publicly available on Rex’s website in a
clearly marked corporate governance section:
> the audit committee charter, including information on procedures for
the selection and appointment of the external auditor, and for the
rotation of external audit engagement partners.
4.5
Make timely and balanced disclosure
4.5.1 Companies should establish
written policies designed to ensure
compliance with ASX Listing Rule
disclosure requirements and to
ensure accountability at a senior
executive level for that compliance
and disclose those policies or a
summary of those policies.
4.5.2 Companies should provide the
information indicated in the Guide
to reporting on Principle 5.
This recommendation is satisfied. Rex has established written policies
and procedures designed to ensure compliance with ASX Listing Rule
disclosure requirements and accountability for compliance. Rex’s
Continuous Disclose Policy sets out Rex’s policies and procedures with
regard to the reporting of material price sensitive information to the
ASX subject to confidentiality carve-out aspects and Rex’s procedures in
this regard.
An explanation of any departures from Recommendations 4.5.1 or 4.5.2
are included in the corporate governance statement in the Annual Report.
The policies or a summary of those policies designed to guide compliance
with Listing Rule disclosure requirements are publicly available on Rex’s
website in a clearly marked corporate governance section.
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REX MINERALS LTD
DIRECTORS’ REPORT (continued) – for the year ended 30 June 2011
4. CORPORATE GOVERNANCE STATEMENT (continued)
Recommendation
Comment
4.6
Respect the rights of shareholders
4.6.1 Companies should design and
disclose a communications policy for
promoting effective communication
with shareholders and encouraging
their participation at general
meetings and disclose their policy or
a summary of that policy.
Rex places a high priority on communications with its Shareholders.
Although Rex does not have a standalone communications policy, Rex
considers that its Continuous Disclosure Policy, together with disclosure
through the following means, should be sufficient to promote effective
communications with shareholders:
> announcements released through to the ASX company
announcements platform;
> notices of meetings to shareholders; and
> provision of all relevant documentation released on Rex’s website.
4.6.2 Companies should provide the
information indicated in the Guide to
reporting on Principle 6.
An explanation of any departure from Recommendations 4.6.1 or 4.6.2
are included in the corporate governance statement in the Annual Report.
Rex describes its communications policy with Shareholders in the
corporate governance statement in the Annual Report.
4.7
Recognise and manage risk
4.7.1 Companies should establish policies
for the oversight and management of
material business risks and disclose
a summary of those policies.
Although there is no standalone risk management policy, the Board
Charter provides that it is the Board’s responsibility to approve Rex’s
risk and audit framework, systems of risk management and internal
control, as well as approving compliance with any risk and audit
policies and protocols in place at the time.
Rex Management has reported to the Board under Recommendation
4.7.2 on risk management.
4.7.2 The Board should require
This recommendation is satisfied.
management to design and
implement the risk management and
internal control system to manage
the Company’s material business
risks and report to it on whether
those risks are being managed
effectively. The Board should
disclose that management has
reported to it as to the effectiveness
of the Company’s management of its
material business risks.
4.7.3 The Board should disclose whether
it has received assurance from the
chief executive officer (or equivalent)
and the chief financial officer (or
equivalent) that the declaration
provided in accordance with section
295A of the Corporations Act is
founded on a sound system of risk
management and internal control
and that the system is operating
effectively in all material respects in
relation to financial reporting risks.
This recommendation is satisfied.
Page 23
REX MINERALS LTD
DIRECTORS’ REPORT (continued) – for the year ended 30 June 2011
4. CORPORATE GOVERNANCE STATEMENT (continued)
Recommendation
Comment
4.7
Recognise and manage risk (continued)
4.7.4 Companies should provide the
information indicated in the Guide
to reporting on Principle 7.
The following material is included in the corporate governance statement
in the Annual Report:
> explanation of any departures from Recommendations 4.7.1, 4.7.2,
4.7.3 or 4.7.4;
> whether management has reported to the Board under
Recommendation 4.7.2; and
> whether the Board has received assurance from the chief executive
officer (or equivalent) and the chief financial officer (or equivalent)
under Recommendation 4.7.3.
4.8
Remunerate fairly and responsibly
4.8.1 The Board should establish a
This recommendation is satisfied.
Remuneration Committee.
4.8.2 The remuneration committee
should be structured so that it
consists of a majority of
independent directors, is chaired
by an independent director and
has at least three members.
The members of the Remuneration Committee are Richard Laufmann,
Paul Chapman and Alister Maitland, who are all independent Directors.
Richard Laufmann is an independent Chair of the Remuneration
Committee (and he is not Chair of the Board). The Directors consider
that the Remuneration Committee is of sufficient size, independence and
technical expertise to discharge its mandate effectively.
4.8.3 Companies should clearly
This recommendation is satisfied.
distinguish the structure of Non-
Executive Director’s remuneration
from that of Executive Directors
and senior executives.
4.8.4 Companies should provide the
information indicated in the Guide
to reporting on Principle 8.
The following material or a clear cross-reference to the location of the
material is included in the corporate governance statement in the Annual
Report or elsewhere in the Annual Report (as appropriate):
> the names of the members of the remuneration committee and their
attendance at meetings of the committee, or where the company does
not have a remuneration committee, how the functions of a
remuneration committee are carried out.
> the existence and terms of any schemes for retirement benefits, other
than superannuation, for non-executive directors; and
> an explanation of any departures from Recommendations 4.8.1,
4.8.2, 4.8.3 or 4.8.4.
Page 24
R e x M i n e r a l s L t d > A N N U A L R E P O R T 2 0 1 1 <
REX MINERALS LTD
DIRECTORS’ REPORT (continued) – for the year ended 30 June 2011
5. PRINCIPAL ACTIVITIES
The principal activity of the Group during the course of the financial year was minerals exploration in Australia.
There were no significant changes in the nature of the Group’s principal activities during the year.
Rex is focussed on the exploration and development of large-scale copper-gold projects on the Yorke Peninsula,
South Australia. Rex’s strategy is to discover large-scale copper-gold deposits which can lead to the development
of a new long-life and low-cost mining operation on the Yorke Peninsula.
Rex has made an initial discovery at the Hillside copper-gold deposit and completed a conceptual study to assess a
potential development plan for this deposit. Rex is progressing the Hillside deposit to the level of a pre-feasibility
study in conjunction with maintaining a regional exploration program for further discoveries and enhancement of
the future mine development plans on the Yorke Peninsula.
Rex applies its extensive technical experience and existing drilling capacity to progress its projects, laying solid
foundations for long term growth, enabling Rex to uncover the substantial deposits of copper that Rex interprets to
exist under shallow cover rocks on the Yorke Peninsula.
5.1 Objectives
The Group’s principal objective is to create value through the discovery, development and mining of mineral
resources. To progress with the Group’s primary objective, the following targets have been set for 2012 and
later financial years.
> Resource – Complete drilling at Hillside focussing on two key outcomes:
(cid:127) Detailed ore definition for the purpose of upgrading the Minerals Resource into a Reserve; and
(cid:127) Expand on the existing Resource, targeting a range of 1.6Mt to 2.1Mt.
> New Discovery – Effectively test the highest priority targets generated regionally on the Yorke Peninsula.
> Economics – Complete the Hillside pre-feasibility study targeting production of more than 70,000 tonnes
of copper per annum and associated by-products of gold and magnetite for a minimum 10 year mine life.
> Financing – Commence assessing financing options for Hillside.
> Organisation – Plan for the transition of the organisation from explorer to developer to producer.
6. OPERATING AND FINANCIAL REVIEW
The income statement shows a profit after tax of $593,266 (2010: $2,327,007) for the year. The Group has no
bank debt. As at 30 June 2011 the Group had a cash position of $45,084,267 (2010: $31,474,941) and funds on
deposit of $34,000,000 (2010: nil). Operating activities incurred a cash inflow for the year of $230,899 (2010:
cash inflow of $273,168).
7. SIGNIFICANT CHANGES IN THE STATE OF AFFAIRS
On 13 October 2010, Rex announced an underwritten equity raising of approximately $85 million via a share
placement at $2.50 per share. This equity raising was successfully completed in two stages during October and
December 2010. At this time a Share Purchase Plan was also announced, with existing shareholders being eligible
for up to $5,000 worth of shares, at $2.50 per share. The Share Purchase Plan was completed in November 2010.
In the opinion of the Directors there were no further significant changes in the state of affairs of the Group during
the year ended 30 June 2011.
8. DIVIDENDS PAID OR RECOMMENDED
The Directors do not recommend the payment of a dividend and no amount has been paid or declared by way of a
dividend to the date of this report.
9. EVENTS SUBSEQUENT TO REPORTING DATE
On 16 September 2011 Mr Alister Maitland was appointed Non-Executive Director of Rex Minerals.
Other than the event described above, subsequent to 30 June 2011 there has not arisen in the interval between the
end of the financial year and the date of this report any other item, any transaction or event of a material and
unusual nature likely, in the opinion of the Directors of the Company, to affect significantly the operations of the
Group, the results of those operations, or the state of affairs of the Group, in future financial years.
Page 25
REX MINERALS LTD
DIRECTORS’ REPORT (continued) – for the year ended 30 June 2011
10. LIKELY DEVELOPMENTS
Likely developments are the continued minerals exploration on the tenements owned or controlled by the Group.
Further information about likely developments in the operations of the Group and the expected results of those
operations in future financial years has not been included in this report because disclosure of the information
would be likely to result in unreasonable prejudice to the Group.
11. DIRECTO RS’ INTERESTS
The relevant interest of each Director in the shares or options over such instruments issued by the companies
within the Group and other related bodies corporate, as notified by the Directors to the Australian Securities
Exchange in accordance with S205G(1) of the Corporations Act 2001, at the date of this report is as follows:
Mr Paul Chapman
Mr Richard Laufmann
Mr Alister Maitland
Mr Steven Olsen
Rex Minerals Limited
Ordinary shares
Options over ordinary shares
3,524,000
3,500,000
202,000
6,002,000
–
–
–
–
12. SHARE OPTIONS
12.1 Options granted to Directors and Officers of the Company
During or since the end of the financial year, the Company granted options for no consideration over unissued
ordinary shares in the Company to the following Directors and to the following of the five most highly
remunerated Officers of the Company as part of their remuneration:
All options were granted during the financial year. No options have been granted since the end of the
financial year.
Directors
Mr Paul Chapman
Mr Richard Laufmann
Mr Steven Olsen
Executives
Ms Amber Rivamonte
Ms Janet Mason
Mr Patrick Say
Number of options
granted
Exercise price
Expiry date
–
–
–
80,000
80,000
80,000
–
–
–
$3.00
$3.00
$3.00
–
–
–
30 April 2014
30 April 2014
30 April 2014
Page 26
R e x M i n e r a l s L t d > A N N U A L R E P O R T 2 0 1 1 <
REX MINERALS LTD
DIRECTORS’ REPORT (continued) – for the year ended 30 June 2011
12.2
Unissued shares under option
At the date of this report unissued ordinary shares of the Company under option are:
Expiry date
31 May 2012
31 October 2012
24 May 2013
30 April 2014
Total
Exercise price*
Number of shares
$0.552
$2.052
$1.220
$3.000
60,000
240,000
561,000
1,600,000
2,461,000
*For options issued prior to 15 June 2010, the exercise prices are shown post the reduction arising from the demerger. Exercise prices
were reduced in accordance with the ASX listing rules by $0.148 per share as a result of the demerger.
All options expire on the expiry date, unless the options have not been exercised and the employee leaves the
Company then the options will lapse if they are not exercised within 60 days of departure.
12.3
Shares issued on exercise of options
During or since the end of the financial year the Company issued ordinary shares as a result of the exercise
of options as follows (there are no amounts unpaid on the shares issued):
Number of shares
Amount paid on each share
2,350,000
1,000,000
150,000
120,000
39,000
3,659,000
$0.102
$0.152
$0.217
$0.552
$1.222
13. INDEMNIFICATION AND INSURANCE OF OFFICERS
The Company provides insurance to cover legal liability and expenses for the Directors and Executive Officers of
the Company. The Directors and Officers Liability Insurance provides cover against all costs and expenses that may
be incurred in defending civil or criminal proceedings that fall within the scope of the indemnity and that may be
brought against the Officers in their capacity as Officers. Disclosure of the nature of the liability cover and the
amount of the premium is subject to a confidentiality clause under the insurance policy.
The Company has entered into an agreement with the Directors and certain Officers to indemnify these individuals
against any claims and related expenses, which arise as a result of their work in their respective capacities.
The Company has not provided any insurance or indemnity for the auditor of the Company.
14. NON-AUDIT SERVICES
During the year KPMG, the Company’s auditor, did not provide any non-audit services to the Company or any of its
controlled entities (2010: nil).
Page 27
REX MINERALS LTD
DIRECTORS’ REPORT (continued) – for the year ended 30 June 2011
15. REMUNERATION REPORT – AUDITED
15.1 Principles of compensation
Remuneration is referred to as compensation through this report.
Key management personnel have authority and responsibility for planning, directing and controlling the
activities of the Company and the Group, including Directors of the Company and Senior Executives. Key
management personnel comprise the Directors of the Company and Senior Executives for the Company and
the Group including the five most highly remunerated Company and Group Executives.
Compensation levels for key management personnel of the Group are competitively set to attract and retain
appropriately qualified and experienced Directors and Senior Executives. Compensation levels have been
determined by considering the number of employees, market capitalisation, net profit and revenue. They are
also based on remuneration of Top 500 ASX listed companies. The Board obtains independent advice of the
appropriateness of compensation packages of both the Company and the Group given trends in comparative
companies and the objectives of the Company’s compensation strategy.
In considering the Group’s performance and benefits for shareholder wealth, the Board has regard to the
geological finds and the following indices in respect of the current financial year and previous financial years.
2011
2010
2009
2008
IPO Sept
2007
Net profit/(loss) attributable to
equity holders of the parent
$593,266
$2,327,007 $(1,851,166)
$(857,987)
$ –
Closing share price
$2.31
$1.250
$0.555
$0.260
$0.250
The compensation structures are designed to attract suitably qualified candidates, reward the achievement of
strategic objectives, and achieve the broader outcome of creation of value for shareholders.
15.1.1 Fixed compensation
Fixed compensation consists of base compensation (which is calculated on a total cost basis and includes
any FBT charges related to employee benefits including motor vehicles), as well as employer contributions to
superannuation funds.
Compensation levels are reviewed annually by the Board through a process that considers individual and
overall performance of the Group. In addition, external consultants provide analysis and advice to ensure the
Directors’ and Senior Executives’ compensation is competitive in the market place.
15.1.2 Performance linked compensation
Performance linked compensation includes both short-term and long-term incentives, and is designed to
reward key management personnel for meeting or exceeding their financial and personal objectives.
15.1.3 Short-term incentive bonus
The short-term incentive (STI) is a discretionary bonus provided in the form of cash, which is calculated
based on an assessment of key performance indicators, including share price performance, business growth,
exploration success and safety, environment and community issues.
15.1.4 Long-term incentive
The long-term incentive (LTI) is provided as options over ordinary shares of the Company. Options granted
to employees currently vest immediately and only lapse in the event of the employee leaving the Company or
the expiry date, whichever occurs earlier. Due to the nature of the Company at this time; the Board believes
this is appropriate, having regard to the exercise price of options being set at a premium to the current
share price.
Page 28
R e x M i n e r a l s L t d > A N N U A L R E P O R T 2 0 1 1 <
REX MINERALS LTD
DIRECTORS’ REPORT (continued) – for the year ended 30 June 2011
15. REMUNERATION REPORT – AUDITED (continued)
15.1.5 Service agreements
It is the Group’s policy that employment contracts for key management personnel, excluding the Chief
Executive Officer are unlimited in term but capable of termination on 3 months’ notice and that the Group
retains the right to terminate the contract immediately, by making payment equal to 3 months’ pay in
lieu of notice.
The Group has entered into contracts with each key management person, excluding the Chief Executive
Officer, that are capable of termination on three months’ notice. The Group retains the right to terminate a
contract immediately by making payment equal to three month’s pay in lieu of notice. The key management
personnel are also entitled to receive on termination of employment their statutory entitlements of accrued
annual and long service leave, together with any superannuation benefits.
The employment contract outlines the components of compensation paid to the key management personnel
but does not prescribe how compensation levels are modified year to year. Compensation levels are reviewed
each year to take into account cost-of-living changes, any change in the scope of the role performed by the
Senior Executive and any changes required to meet the principles of the compensation policy. The Chief
Executive Officer undertakes performance reviews with all key management personnel annually in June.
Mr Steven Olsen, Chief Executive Officer, has a contract of employment dated 1 July 2010 with the
Company which terminates on the 30 June 2013. The contract specifies the duties and obligations to be
fulfilled by the Chief Executive Officer and provides that the Board and Chief Executive Officer will consult
and agree objectives for achievement each year.
The Chief Executive Officer has no entitlement to termination payment in the event of removal for
misconduct or gross negligence.
Discretionary bonus payments are allowable under the current management employment contracts
including the Chief Executive Officer for meeting and/or exceeding performance milestones and upon
approval by the Board.
Non-Executive Directors
Total compensation for all Non-Executive Directors, last voted upon by shareholders at the 2007 AGM, is
not to exceed $300,000 per annum and is set based on advice from external advisors with reference to fees
paid to other Non-Executive Directors of comparable companies. Directors’ base fees are presently
$280,000 per annum.
The Chairperson and Non-Executive Directors do not receive performance related remuneration.
Directors’ fees cover all main Board activities and membership of committees.
15.2 Directors’ and Executive Officers’ remuneration (Group)
Details of the nature and amount of each major element of remuneration of each Director of the Company,
each of the named Company Executives and relevant Group Executives who receive the highest
remuneration and other key management personnel appear in the Table on Page 30.
Page 29
REX MINERALS LTD
DIRECTORS’ REPORT (continued) – for the year ended 30 June 2011
15.2
Directors’ and Executive Officers’ remuneration (Group) (continued)
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Mr Alister Maitland was appointed to the Board 16 September 2011.
Ms Amber Rivamonte was on leave for 6 months during 2010.
Ms Janet Mason was on leave for 7 months during 2011. During this period Ms Rivamonte was Acting Chief Financial Officer.
Mr Patrick Say was appointed Geology Manager 1 July 2010.
Mr Brian Phillips was appointed Director on 12 February 2010 and resigned 15 June 2010.
Mr Geoffrey Lowe was previously Exploration Manager and was appointed Director on 12 February 2010 and resigned 15 June 2010.
Page 30
R e x M i n e r a l s L t d > A N N U A L R E P O R T 2 0 1 1 <
REX MINERALS LTD
DIRECTORS’ REPORT (continued) – for the year ended 30 June 2011
15. REMUNERATION REPORT – AUDITED (CONTINUED)
15.2 Directors’ and Executive Officers’ remuneration (Group) (continued)
Notes in relation to the table of Directors’ and Executive Officers remuneration
A.
B.
The short-term incentive bonus is for performance during the respective financial year using the criteria set
out in the Remuneration Report. The amount was finally determined after performance reviews were
completed and approved by the Board. No amounts vest in future years in respect of the bonuses paid.
The fair value of the unlisted options granted has been calculated at the date of grant based upon the Black
Scholes option pricing model. The fair value is allocated to each reporting period evenly over the period from
grant date to vesting date. The value disclosed is the portion of the fair value of the options recognised in
this reporting period.
The following factors and assumptions were used in determining the fair value of options on grant date:
Grant Date
Option life
Fair value per
option
Exercise price
Price of
shares on
grant date
Expected
volatility
Risk free
interest rate
6 May 2011
2.49 years
$0.54
$3.00
$2.51
38%
4.96%
15.3 Equity Instruments
All options refer to options over ordinary shares of Rex Minerals Ltd, which are exercisable on a one-for-one basis.
15.3.1 Options and rights over equity instruments granted as compensation
Details on options over ordinary shares in the Company that were granted as compensation to each key
management person during the reporting period and details on options that vested during the reporting
period are as follows:
Number of
options granted
during 2011
Grant and
vesting date
Fair value per
option at grant
date ($)
Exercise
price per
option ($)
Expiry date
Number of
options vested
during 2011
Directors
Mr Paul Chapman
Mr Richard Laufmann
Mr Steven Olsen
Executives
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
Ms Amber Rivamonte
80,000
6 May 2011
Ms Janet Mason
Mr Patrick Say
80,000
6 May 2011
80,000
6 May 2011
$0.54
$0.54
$0.54
$3.00 30 April 2014
$3.00 30 April 2014
$3.00 30 April 2014
80,000
80,000
80,000
Number of
options granted
during 2010
Grant and
vesting date
Fair value per
option at grant
date ($)
Exercise
price per
option ($)
Expiry date
Number of
options vested
during 2010
Directors
Mr Paul Chapman
Mr Richard Laufmann
Mr Brian Phillips
Mr Steven Olsen
Mr Geoffrey Lowe
Executives
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
Ms Amber Rivamonte
73,800
3 June 2010
Ms Janet Mason
73,800
3 June 2010
$0.28
$0.28
$1.22
24 May 2013
$1.22
24 May 2013
–
–
–
–
200,000
273,800
113,800
No options have been granted since the end of the financial year. The options were provided at no cost to the recipients.
Page 31
REX MINERALS LTD
DIRECTORS’ REPORT (continued) – for the year ended 30 June 2011
15. REMUNERATION REPORT – AUDITED (continued)
15.3.2 Modification of terms of equity-settled share-based payment transactions
No terms of equity-settled share-based payment transactions (including options and rights granted as
compensation to a key management person) have been altered or modified by the issuing entity during the
current period.
As per the ASX Listing rule Clause 7.22.3 which deals with the effect on options from a return of share
capital, the exercise price of each Rex option on issue reduced by 14.8 cents on 15 June 2010. This price
reduction did not impact on the fair value of the options.
15.3.3 Exercise of options granted as compensation
During the reporting period, there were no shares issued to key management personnel on the exercise of
options previously granted as compensation.
15.3.4 Analysis of movements in options
The movement during the reporting period, by value, of options over ordinary shares in the Company held by
each key management person, and each of the five named Company Executives and Group Executives is
detailed below.
Granted in year
$ (A)
Value of Options
Exercised in year
$ (B)
Lapsed in year
$ (C)
Directors
Mr Paul Chapman
Mr Richard Laufmann
Mr Steven Olsen
Executives
Ms Amber Rivamonte
Ms Janet Mason
Mr Patrick Say
Total
–
–
–
43,200
43,200
43,200
129,600
–
–
–
–
–
–
–
–
–
–
–
–
–
–
(A) The value of options granted in the year is the fair value of the options calculated at grant date using the
Black Scholes option pricing model as described in note 23. The total value of the options granted is
included in the table above. This amount is allocated to remuneration upon grant.
(B) The value of options exercised during the year is calculated at grant date using the Black Scholes option
pricing model as described in note 23.
(C) No options lapsed during the year.
16. LEAD AUDITOR’S INDEPENDENCE DECLARATION
The lead auditor’s independence declaration is set out on page 61 and forms part of the Directors’ report for the
year ended 30 June 2011.
Dated at Melbourne this 22nd day of September 2011
Signed in accordance with a resolution of the Directors:
Steven Olsen
Managing Director
Page 32
R e x M i n e r a l s L t d > A N N U A L R E P O R T 2 0 1 1 <
FINANCIAL STATEMENTS
Page 33
REX MINERALS LTD
STATEMENT OF FINANCIAL POSITION – as at 30 June 2011
Group Group
2011 2010
Note $ $
Current Assets
Cash and cash equivalents 7(i) 45,084,267 31,474,941
Term deposits 7(ii) 34,000,000 –
Receivables 8 884,677 229,478
Other assets 9 9,420 22,263
Total current assets 79,978,364 31,726,682
Non-current assets
Other assets 9 – 1,000,000
Exploration and evaluation expenditure 10 51,958,831 22,278,777
Property, plant and equipment 12 11,102,663 373,671
Total non-current assets 63,061,494 23,652,448
Total assets 143,039,858 55,379,130
Current Liabilities
Trade payables 13 3,168,171 1,808,670
Employee benefits 14 269,438 141,989
Total current liabilities 3,437,609 1,950,659
Total liabilities 3,437,609 1,950,659
Net assets 139,602,249 53,428,471
Equity
Issued capital 15(i) 137,665,189 52,948,677
Reserves 15(iii) 1,137,690 520,080
Retained earnings /(Accumulated losses) 799,370 (40,286)
Total equity 139,602,249 53,428,471
The notes on pages 38 to 59 are an integral part of these financial statements.
Page 34
R e x M i n e r a l s L t d > A N N U A L R E P O R T 2 0 1 1 <
REX MINERALS LTD
STATEMENT OF COMPREHENSIVE INCOME – for the year ended 30 June 2011
Group Group
2011 2010
Note $ $
Finance income 16 3,816,443 1,433,666
Other income 17 – 85
Administrative expenses (1,502,038) (727,549)
Depreciation expense (62,359) (76,137)
Employee benefits expense 18 (1,426,162) (668,928)
Marketing expenses (232,415) (155,147)
Loss on sale of fixed assets (203) –
Profit on demerger of investment 19 – 2,521,017
Profit before tax 593,266 2,327,007
Income tax (expense)/benefit 20 – –
Total profit for the period after tax 593,266 2,327,007
Total comprehensive income attributable to members of Rex Minerals Ltd 593,266 2,327,007
Earnings per share attributable to ordinary equity holders
Basic earnings per share (cents) 21 0.43 2.48
Diluted earnings per share (cents) 21 0.42 2.36
The notes on pages 38 to 59 are an integral part of these financial statements.
Page 35
REX MINERALS LTD
STATEMENT OF CHANGES IN EQUITY – for the year ended 30 June 2011
Attributable to equity holders of the Group
Share Retained
Capital Reserves Earnings Total Equity
$ $ $ $
Balance at 1 July 2009 24,711,046 552,130 (2,699,202) 22,563,974
Issue of ordinary shares 45,212,617 – – 45,212,617
Share based payments compensation – 299,859 – 299,859
Transfer from share based payments reserve – (331,909) 331,909 –
Capital reduction via share distribution (16,974,986) – – (16,974,986)
Total comprehensive income for the period – – 2,327,007 2,327,007
Balance at 30 June 2010 52,948,677 520,080 (40,286) 53,428,471
Balance at 1 July 2010 52,948,677 520,080 (40,286) 53,428,471
Issue of ordinary shares 84,716,512 – – 84,716,512
Share based payments compensation – 864,000 – 864,000
Transfer from share based payments reserve – (246,390) 246,390 –
Total comprehensive income for the period – – 593,266 593,266
Balance at 30 June 2011 137,665,189 1,137,690 799,370 139,602,249
The notes on pages 38 to 59 are an integral part of these financial statements.
Page 36
R e x M i n e r a l s L t d > A N N U A L R E P O R T 2 0 1 1 <
REX MINERALS LTD
STATEMENT OF CASH FLOWS – for the year ended 30 June 2011
Group Group
2011 2010
Note $ $
Cash flows from operating activities
Cash paid to suppliers and employees (3,159,025) (1,059,798)
Interest received 3,389,924 1,332,966
Net cash from/(used in) operating activities 22 230,899 273,168
Cash flows from investing activities
Exploration and evaluation payments (27,435,325) (13,637,366)
Acquisition of property, plant and equipment (8,511,209) (2,260,219)
Proceeds from sale of property, plant and equipment 50 17,000
Investments in term deposits 7(ii) (34,000,000) –
Cash outflow on demerger of White Rock Minerals – (6,795,404)
Net cash from/(used in) investing activities (69,946,484) (22,675,989)
Cash flows from financing activities
Proceeds from issue of share capital 88,235,648 43,419,950
Payment of transaction costs (4,910,737) (1,828,255)
Net cash from/(used in) financing activities 83,324,911 41,591,695
Net increase in cash and cash equivalents 13,609,326 19,188,874
Cash and cash equivalents at beginning of the period 31,474,941 12,286,067
Cash and cash equivalents at period end 7(i) 45,084,267 31,474,941
The notes on pages 38 to 59 are an integral part of these financial statements.
Page 37
REX MINERALS LTD
NOTES TO THE FINANCIAL STATEMENTS
1. REPORTING ENTITY
Rex Minerals Limited (the “Company”) is a Company domiciled in Australia. The address of the Company’s
registered office is 209 Dana Street, Ballarat, Victoria, 3350. The Group financial statements as at and for the
year ended 30 June 2011 comprise the Company and its subsidiaries (together referred to as the “Group” and
individually as “Group entities”). The Group primarily is involved in minerals exploration in Australia.
2. BASIS OF PREPARATION
(a) Statement of compliance
The financial report is a general purpose financial report which has been prepared in accordance with Australian
Accounting Standards (AASBs) (including Australian Interpretations) adopted by the Australian Accounting
Standards Board (AASB) and the Corporations Act 2001. The financial report of the Group complies with
International Financial Reporting Standards (IFRSs) and interpretations adopted by the International Accounting
Standards Board (IASB).
The financial statements were approved by the Board of Directors on 22 September 2011.
(b) Basis of measurement
The Group financial statements have been prepared on the historical cost basis.
(c) Functional and presentation currency
These Group financial statements are presented in Australian dollars, which is the functional currency of all
entities in the Group.
(d) Use of estimates and judgements
The preparation of financial statements requires management to make judgements, estimates and assumptions that
affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses.
Actual results may differ from these estimates.
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are
recognised in the period in which the estimate is revised and in any future periods affected.
In particular, information about significant areas of estimation uncertainty and critical judgements in applying
accounting policies that have the most significant effect on the amount recognised in the financial statements are
described in the following notes:
>
note 10
Exploration and evaluation expenditure
>
note 14
Employee benefits
>
note 23
Share-based payments
>
note 25, 26, 27 Commitments and contingencies
3. SIGNIFICANT ACCOUNTING POLICIES
The accounting policies set out below have been applied consistently to all periods presented in these Group
financial statements, and have been applied consistently by Group entities.
(a) Basis of consolidation
(i)
Subsidiaries
Subsidiaries are entities controlled by the Group. Control exists when the Group has the power to govern the
financial and operating policies of an entity so as to obtain benefits from its activities. In assessing control,
potential voting rights that currently are exercisable are taken into account. The financial statements of
subsidiaries are included in the Group financial statements from the date that control commences until the
date that control ceases. The accounting policies of subsidiaries have been changed when necessary to align
them with the policies adopted by the Group.
(ii) Transactions eliminated on consolidation
Intra-group balances, and any unrealised income and expenses arising from intra-group transactions, are
eliminated in preparing the Group financial statements.
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REX MINERALS LTD
NOTES TO THE FINANCIAL STATEMENTS (continued)
3. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(b) Financial instruments
(i) Non-derivative financial instruments
Non-derivative financial instruments comprise investments in equity, trade and other receivables, cash and
cash equivalents and trade and other payables.
Non-derivative financial instruments are recognised initially at fair value plus, for instruments not at fair
value through profit or loss, any directly attributable transaction costs. Subsequent to initial recognition
non-derivative financial instruments are measured as described below.
A financial instrument is recognised if the Group becomes a party to the contractual provisions of the
instrument. Financial assets are derecognised if the Group’s contractual rights to the cash flows from the
financial assets expire or if the Group transfers the financial asset to another party without retaining control
or substantially all risks and rewards of the asset. Sales of financial assets are accounted for at trade date,
i.e., the date that the Group commits itself to purchase or sell the asset. Financial liabilities are derecognised
if the Group’s obligations specified in the contract expire or are discharged or cancelled.
(i)
Receivables – other debtors
Other debtors are measured at amortised cost using the effective interest method, less impariment
losses. Other debtors are reviewed on an ongoing basis. An impairment loss is recognised for debts
which are known to be uncollectible. An impairment allowance is raised for any doubtful accounts.
(ii) Receivables – sale of non-current assets
The net gain (loss) on the sale of goods is included as revenue or expense at the date control of the
assets passes to the buyer. The gain or loss on disposal is calculated as the difference between the
carrying amount of the asset at the time of disposal and the net proceeds on disposal (including
incidental costs).
(iii) Cash and cash equivalents
Cash and cash equivalents comprise cash balances and call deposits with an original maturity of three
months or less.
(iv) Term Deposits
Term Deposits comprise cash balances and call deposits with an original maturity of more than
three months.
(v)
Trade and other payables
Liabilities are recognised for amounts to be paid in the future for goods and services provided to the
Group prior to the end of the reporting period and are stated at amortised cost. The amounts are
unsecured and are usually paid within 30 days of recognition.
Other non-derivative financial instruments are measured at amortised cost using the effective interest
method, less any impairment losses.
(ii) Share capital
Ordinary shares
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of ordinary
shares and share options are recognised as a deduction from equity, net of any tax effects.
(c) Property, plant and equipment
(i)
Recognition and measurement
Items of property, plant and equipment are measured at cost less accumulated depreciation and impairment
losses. Cost includes expenditure that is directly attributable to the acquisition of the asset.
(ii) Subsequent costs
The cost of replacing part of an item of property, plant and equipment is recognised in the carrying amount
of the item if it is probable that the future economic benefits embodied within the part will flow to the Group
and its cost can be measured reliably. The carrying amount of the replaced part is derecognised. The costs of
the day-to-day servicing of property, plant and equipment are recognised in profit or loss as incurred.
Page 39
REX MINERALS LTD
NOTES TO THE FINANCIAL STATEMENTS (continued)
3. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(c) Property, plant and equipment (Continued)
(iii) Depreciation
Depreciation is recognised in profit or loss on a straight-line basis over the estimated useful lives of each
part of an item of property, plant and equipment.
The estimated useful lives for the current and comparative periods are as follows:
> plant and equipment 5 – 10 years
> buildings 10 – 20 years
Depreciation methods, useful lives and residual values are reviewed at each reporting date.
(d) Exploration and evaluation
Exploration and evaluation costs, including the costs of acquiring licences, are capitalised as exploration and
evaluation assets on an area of interest basis. Costs incurred before the Group has obtained the legal rights to
explore an area are recognised in the income statement.
Exploration and evaluation assets are only recognised if the rights of the area of interest are current and either:
>
>
the expenditures are expected to be recouped through successful development and exploitation of the area of
interest; or
activities in the area of interest have not, at the reporting date, reached a stage which permits a reasonable
assessment of the existence or otherwise of economically recoverable reserves and active and significant
operations in, or in relation to, the area of interest are continuing.
Exploration and evaluation assets are assessed for impairment if:
>
sufficient data exists to determine technical feasibility and commercial viability; and
>
facts and circumstances suggest that the carrying amount exceeds the recoverable amount.
For the purposes of impairment testing, exploration and evaluation assets are allocated to cash-generating units to
which the exploration activity relates. The cash generating unit shall not be larger than the area of interest.
In the event that an area of interest is abandoned or if the Directors consider the expenditure to be of reduced
value, accumulated costs carried forward are written off in the period in which that assessment is made. Each area
of interest is reviewed at the end of each accounting period and accumulated costs are written off to the extent
that they will not be recoverable in the future.
(e) Impairment
(i) Financial assets
A financial asset is assessed at each reporting date to determine whether there is any objective evidence that
it is impaired. A financial asset is considered to be impaired if objective evidence indicates that one or more
events have had a negative effect on the estimated future cash flows of that asset.
An impairment loss in respect of a financial asset measured at amortised cost is calculated as the difference
between its carrying amount, and the present value of the estimated future cash flows discounted at the
original effective interest rate. An impairment loss in respect of an available-for-sale financial asset is
calculated by reference to its fair value.
Individually significant financial assets are tested for impairment on an individual basis. The remaining
financial assets are assessed collectively in groups that share similar credit risk characteristics.
All impairment losses are recognised in profit or loss.
An impairment loss is reversed if the reversal can be related objectively to an event occurring after the
impairment loss was recognised. For financial assets measured at amortised cost, the reversal is recognised
in profit or loss. For available-for-sale financial assets that are equity securities, the reversal is recognised
directly in equity.
(ii) Non-financial assets
The carrying amounts of the Group’s non-financial assets, and deferred tax assets, are reviewed at each
reporting date to determine whether there is any indication of impairment. If any such indication exists then
the asset’s recoverable amount is estimated. For goodwill and intangible assets that have indefinite lives or
that are not yet available for use, recoverable amount is estimated at each reporting date.
The recoverable amount of an asset or cash-generating unit is the greater of its value in use and its fair
value less costs to sell. 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. For the purpose of impairment testing, assets are grouped together
into the smallest group of assets that generates cash inflows from continuing use that are largely
independent of the cash inflows of other assets or groups of assets (the “cash-generating unit”).
Page 40
R e x M i n e r a l s L t d > A N N U A L R E P O R T 2 0 1 1 <
REX MINERALS LTD
NOTES TO THE FINANCIAL STATEMENTS (continued)
3. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(ii) Non-financial assets (Continued)
The goodwill acquired in a business combination, for the purpose of impairment testing, is allocated to cash-
generating units that are expected to benefit from the synergies of the combination.
An impairment loss is recognised if the carrying amount of an asset or its cash-generating unit exceeds its
recoverable amount. Impairment losses are recognised in profit or loss. Impairment losses recognised in
respect of cash-generating units are allocated first to reduce the carrying amount of any goodwill allocated
to the units and then to reduce the carrying amount of the other assets in the unit (group of units) on a pro
rata basis.
An impairment loss in respect of goodwill is not reversed. In respect of other assets, impairment losses
recognised in prior periods are assessed at each reporting date for any indications that the loss has
decreased or no longer exists. An impairment loss is reversed if there has been a change in the estimates
used to determine the recoverable amount. An impairment loss is reversed only to the extent that the asset’s
carrying amount does not exceed the carrying amount that would have been determined, net of depreciation
or amortisation, if no impairment loss had been recognised.
(f) Employee benefits
(i) Wages, salaries and annual leave
Liabilities for employee benefits for wages, salaries and annual leave that are expected to be settled within
twelve months of the reporting date represent obligations resulting from employee’s services provided to
reporting date, are calculated at undiscounted amounts based on remuneration wage and salary rates that
the Company expects to pay as at reporting date including related on-costs, such as workers compensation
insurance and payroll tax.
(ii) Share-based payments
Equity-based compensation will be recognised as an expense in respect of the services received, or as
capitalised exploration expenditure as appropriate.
The fair value of options granted is recognised as an asset or expense with a corresponding increase in
equity. The fair value is measured at grant date and recognised over the period during which the employees
became unconditionally entitled to the options.
The fair value at grant date is independently determined using a Black-Scholes option pricing model that
takes into account the exercise price, the term of the options, the vesting and performance criteria, the
impact of dilution, the non-tradable nature of the option, the share price at grant date and expected price
volatility of the underlying share, the expected dividend yield and the risk-free interest rate for the term of
the option.
(g) Revenue Recognition
Revenue is recognised in the income statement when the significant risks and rewards of ownership have
been transferred to the buyer. No revenue is recognised if there are significant uncertainties regarding
recovery of the consideration due.
Revenues are recognised at fair value of the consideration received net of the amount of GST.
Exchanges of goods or services of the same nature and value without any cash consideration are not
recognised as revenue.
(h) Tax
(i)
Income taxes
Income tax expense comprises current and deferred tax. Income tax expense is recognised in profit or
loss except to the extent that it relates to items recognised directly in equity, in which case it is recognised
in equity.
Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted or
substantively enacted at the reporting date, and any adjustment to tax payable in respect of previous years.
Deferred tax is recognised using the balance sheet method, providing for temporary differences between the
carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation
purposes. Deferred tax is not recognised for the following temporary differences: the initial recognition of
assets or liabilities in a transaction that is not a business combination and that affects neither accounting
nor taxable profit, and differences relating to investments in subsidiaries to the extent that it is probable that
they will not reverse in the foreseeable future. In addition, deferred tax is not recognised for taxable
temporary differences arising on the initial recognition of goodwill. Deferred tax is measured at the tax rates
that are expected to be applied to the temporary differences when they reverse, based on the laws that have
been enacted or substantively enacted by the reporting date.
Page 41
REX MINERALS LTD
NOTES TO THE FINANCIAL STATEMENTS (continued)
3. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(i)
Income taxes (Continued)
Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset current tax
liabilities and assets and they relate to income taxes levied by the same tax authority on the same taxable
entity, or on different tax entities, but they intend to settle current tax liabilities and assets on a net basis or
their tax assets and liabilities will be realised simultaneously.
A deferred tax asset is recognised to the extent that it is probable that future taxable profits will be available
against which the temporary difference can be utilised. Deferred tax assets are reviewed at each reporting
date and are reduced to the extent that it is no longer probable that the related tax benefit will be realised.
(ii) Tax consolidation
The Company and its wholly-owned Australian resident entities are part of a tax-consolidated group. As a
consequence all members of the tax-consolidated group are taxed as a single entity. The head entity within
the tax-consolidated group is Rex Minerals Ltd.
(iii) Goods and services tax
Revenue, expenses and assets are recognised net of the amount of goods and services tax (GST), except
where the amount of GST incurred is not recoverable from the taxation authority. In these circumstances,
the GST is recognised as part of the cost of acquisition of the asset or as part of the expense.
Receivables and payables are stated with the amount of GST included. The net amount of GST recoverable
from, or payable to, the ATO is included as a current asset or liability in the balance sheet.
Cash flows are included in the statement of cash flows on a gross basis. The GST components of cash flows
arising from investing and financing activities which are recoverable from, or payable to, the ATO are
classified as operating cash flows.
(i) Finance income
Finance income comprises interest income on funds invested. Interest income is recognised as it accrues in profit
or loss, using the effective interest method.
(j) Earnings per share
The Group presents basic and diluted earnings per share (EPS) data for its ordinary shares. Basic EPS is
calculated by dividing the profit or loss attributable to ordinary equity holders of the Company by the weighted
average number of ordinary shares outstanding during the period. Diluted EPS is determined by adjusting the
profit or loss attributable to ordinary shareholders and the weighted average number of ordinary shares
outstanding for the effects of all dilutive potential ordinary shares, which comprise share options granted to
employees.
(k) Segment reporting
The Group determines and presents operating segments based on the information that internally is provided to the
Managing Director, who is the consolidated entity’s chief operating decision maker.
An operating segment is a component of the Group that engages in exploration activities which incurs expenses. An
operating segment’s expenditures are reviewed regularly by the Managing Director to make decisions about
resources to be allocated to the segment and assess its performance.
Segment expenditure that is reported to the Managing Director includes items directly attributable to a segment
as well as those that can be allocated on a reasonable basis. Unallocated items comprise mainly corporate assets
(primarily the Company’s headquarters) and head office expenses.
Segment capital expenditure is the total cost incurred during the period on exploration and to acquire property,
plant and equipment.
(l) Demerger accounting treatment
(i)
Acquisition of entity under common control
The acquisition of an entity under common control is completed at carrying value. That is, the assets
and liabilities acquired are recognised at the carrying amounts previously recognised in the consolidated
financial statements.
(ii) Demerger of wholly owned subsidiary
The demerger of White Rock Minerals Limited was accounted for in accordance with Interpretation 17
Distributions of Non-Cash Assets to Owners. Per this accounting guidance the distribution to Rex Minerals
Limited shareholders, of ordinary shares in White Rock Minerals Limited, was measured at fair value at the
date of demerger, based upon an independent external valuation. The difference between the book value of
the White Rock Minerals assets at the demerger date and the fair value of the distribution to shareholders
was recognised in the Income Statement.
Page 42
R e x M i n e r a l s L t d > A N N U A L R E P O R T 2 0 1 1 <
REX MINERALS LTD
NOTES TO THE FINANCIAL STATEMENTS (continued)
3. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(m) New standards and interpretations not yet adopted
The following standards, amendments to standards and interpretations are effective for annual periods beginning
after 1 July 2011, and have not been applied in preparing these consolidated financial statements:
>
>
>
>
AASB 9 Financial Instruments – could change the classification and measurement of financial assets.
The Group does not plan to adopt this standard early, which becomes mandatory for the Group’s 2014
consolidated financial statements and the extent of the impact has not been determined.
IAS 19 Employee Benefits – is amended focussing on, but is not limited to the accounting for defined
benefit plans. In addition, it changes the definition of short-term and other long term employee benefits and
some disclosure requirements. The amendments, which become mandatory for the Group’s 30 June 2013
financial statements, are not expected to have a significant impact on the financial statements.
AASB 2011-4 Amendments to Australian Accounting Standards to Remove Individual Key Management
Personnel Disclosure Requirements – removes the requirements to include individual key management
personnel disclosures in the notes to the financial statements. Companies will still need to provide these
disclosures in the Remuneration Report under s.300A of the Corporations Act 2001. The amendments,
which will become mandatory of the Group’s 30 June 2014 financial statements, are not expected to have
any impact on the financial statements, other than reduced disclosures.
AASB 1054 Australian Additional Disclosures – this standard removes many of the additional disclosures
previously required under standards to align the requirements of accounting standards for publically
accountable for-profit entities in Australia and New Zealand. The amendments will become mandatory for
the Group’s 30 June 2012 financial statements, with retrospective application required. The amendments are
not expected to have any impact on the financial statements.
4. DETERMINATION OF FAIR VALUES
A number of the Group’s accounting policies and disclosures require the determination of fair value for financial
assets and liabilities. Fair values have been determined for measurement and / or disclosure purposes based on the
following methods. Where applicable, further information about the assumptions made in determining fair values is
disclosed in the notes specific to that asset or liability.
(i)
Trade and other receivables
The fair value of trade and other receivables is estimated as the present value of future cash flows,
discounted at the market rate of interest at the reporting date.
(ii) Non-derivative financial liabilities
Fair value, which is determined for disclosure purposes, is calculated based on the present value of future
principal and interest cash flows, discounted at the market rate of interest at the reporting date.
(iii) Share-based payments
Equity-based compensation will be recognised as an expense in respect of the services received, or as
capitalised exploration expenditure as appropriate.
The fair value of options granted is recognised as an asset or expense with a corresponding increase in
equity. The fair value is measured at grant date and recognised over the period during which the employees
became unconditionally entitled to the options.
The fair value at grant date is independently determined using a Black-Scholes option pricing model that
takes into account the exercise price, the term of the options, the vesting and performance criteria, the non-
tradable nature of the option, the share price at grant date and expected price volatility of the underlying
share, the expected dividend yield and the risk-free interest rate for the term of the option.
Page 43
REX MINERALS LTD
NOTES TO THE FINANCIAL STATEMENTS (continued)
5. FINANCIAL RISK MANAGEMENT
(i)
Capital Management
The Group’s objectives when managing capital are to safeguard the Group’s ability to continue as a going
concern, so as to maintain a strong capital base sufficient to maintain future exploration and development of
its projects. In order to maintain or adjust the capital structure, the Group may return capital to
shareholders, or issue new shares. The Group’s focus has been to raise sufficient funds through equity to fund
exploration and evaluation activities and currently has no external borrowings.
The Group encourages employees to be shareholders through the Employee Share Option Plan.
There were no changes in the Group’s approach to capital management during the year. Risk management
policies and procedures are established with regular monitoring and reporting.
Neither the Company nor any of its subsidiaries are subject to externally imposed capital requirements.
(ii) Credit risk
Credit risk is the risk of financial loss to the Group if a customer or counterparty to a financial instrument
fails to meet its contractual obligations, and arises principally from the Group’s receivables from customers
and investment securities.
(iii) Guarantees
Group policy is to provide financial guarantees only to wholly-owned subsidiaries.
(iv) Liquidity risk
Liquidity risk is the risk that the Group will not be able to meet its financial obligations as they fall due.
The Group’s approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient
liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring
unacceptable losses or risking damage to the Group’s reputation.
(v) Market risk
Market risk is the risk that changes in market prices, such as foreign exchange rates, interest rates and
equity prices will affect the Group’s income or the value of its holdings of financial instruments. The
objective of market risk management is to manage and control market risk exposures within acceptable
parameters, while optimising the return.
6. SEGMENT REPORTING
The consolidated entity operates in one geographical segment, being South Australia and one industry, mineral
mining and exploration.
7. CASH ASSETS
(i)
Cash and cash equivalents
Group Group
2011 2010
$ $
Bank balances and short term deposits 45,084,267 31,474,941
Cash and cash equivalents in the statement of cash flows 45,084,267 31,474,941
(ii) Term deposits
Group Group
2011 2010
$ $
Term deposits (i) 34,000,000 –
Total term deposits 34,000,000 –
(i)
Term deposits comprise cash balances with an original maturity of more than three months.
The Group’s total cash and funds on deposit ($79, 084, 267) is exposed to interest rate risk and a sensitivity
analysis for financial assets and liabilities are disclosed in note 24.
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R e x M i n e r a l s L t d > A N N U A L R E P O R T 2 0 1 1 <
REX MINERALS LTD
NOTES TO THE FINANCIAL STATEMENTS (continued)
8. RECEIVABLES
Group Group
2011 2010
$ $
Current
Other receivables 884,677 229,478
Total current receivables 884,677 229,478
9. OTHER ASSETS
Group Group
2011 2010
$ $
Current
Prepayments 9,420 22,263
Non-current
Prepaid deposit (i) – 1,000,000
Total other assets 9,420 1,022,263
(i)
Deposit paid for the purchase of property, plant and equipment.
10. EXPLORATION AND EVALUATION EXPENDITURE
Group Group
2011 2010
$ $
Cost
Balance at 1 July 22,278,777 9,127,523
Acquisitions – 2,895,544
Additions 29,680,054 17,636,478
Disposals – (7,380,768)
Balance at 30 June 51,958,831 22,278,777
Carrying amounts
At 1 July 22,278,777 9,127,523
At 30 June 51,958,831 22,278,777
The recoverability of the carrying amounts of exploration and evaluation assets is dependent on the successful
development and commercial exploitation or sale of the respective area of interest.
Page 45
REX MINERALS LTD
NOTES TO THE FINANCIAL STATEMENTS (continued)
11. UNRECOGNISED DEFERRED TAX ASSETS
Group Group
2011 2010
$ $
Net deferred tax assets have not been recognised in respect of the following
Tax losses and exploration deductions 18,697,263 11,633,257
Total tax assets / (liabilities) not recognised 18,697,263 11,633,257
The tax losses do not expire under current tax legislation. Deferred tax assets have not been recognised in respect
of these items because it is not probable that future taxable profit will be available against which the Company can
utilise the benefits.
12. PROPERTY, PLANT AND EQUIPMENT
Group Group Group
Land and Plant and
Buildings Equipment Total
2011 $ $ $
Cost
Balance at 1 July 2010 16,953 478,721 495,674
Acquisitions 9,961,329 945,228 10,906,557
Disposals – (3,747) ( 3,747)
Balance at 30 June 2011 9,978,282 1,420,202 11,398,484
Depreciation and impairment losses
Balance at 1 July 2010 114 121,889 122,003
Depreciation charged to the income statement 342 62,017 62,359
Depreciation charged to exploration projects 366 114,587 114,953
Disposals – (3,494) (3,494)
Balance at 30 June 2011 822 294,999 295,821
Carrying amounts
At 1 July 2010 16,839 356,832 373,671
At 30 June 2011 9,977,460 1,125,203 11,102,663
Page 46
R e x M i n e r a l s L t d > A N N U A L R E P O R T 2 0 1 1 <
REX MINERALS LTD
NOTES TO THE FINANCIAL STATEMENTS (continued)
12. PROPERTY, PLANT AND EQUIPMENT (CONTINUED)
Group Group Group
Land and Plant and
Buildings Equipment Total
2010 $ $ $
Cost
Balance at 1 July 2009 2,273 227,184 229,457
Acquisitions 43,725 1,245,050 1,288,775
Disposals (29,045) (993,513) (1,022,558)
Balance at 30 June 2010 16,953 478,721 495,674
Depreciation and impairment losses
Balance at 1 July 2009 – 63,821 63,821
Depreciation charged to the income statement 114 76,023 76,137
Depreciation charged to exploration projects – 12,954 12,954
Disposals – (30,909) (30,909)
Balance at 30 June 2010 114 121,889 122,003
Carrying amounts
At 1 July 2009 2,273 163,363 165,636
At 30 June 2010 16,839 356,832 373,671
13. TRADE PAYABLES
Group Group
2011 2010
$ $
Current
Other trade payables and accrued expenses 3,168,171 1,808,670
Total current trade and other payables 3,168,171 1,808,670
14. EMPLOYEE BENEFITS
Group Group
2011 2010
$ $
Current
Liability for annual leave 269,438 141,989
Total employee benefits 269,438 141,989
Page 47
REX MINERALS LTD
NOTES TO THE FINANCIAL STATEMENTS (continued)
15. ISSUED CAPITAL
(i) Movements in shares on issue:
Date of Number Issue
Issue of Shares Price
$ $
Opening balance at 1 July 2010 114,389,460 52,948,677
Exercise of Employee Options – funds received 02/08/2010 100,000 0.102 10,200
Exercise of Employee Options – funds received 02/08/2010 60,000 0.552 33,120
Exercise of Employee Options – funds received 03/09/2010 60,000 0.552 33,120
Exercise of Employee Options – funds received 01/10/2010 90,000 0.217 19,530
Exercise of Employee Options – funds received 01/10/2010 500,000 0.102 51,000
Issue of Ordinary Shares – Placement 19/10/2010 17,000,000 2.500 42,500,000
Less costs of the Placement (2,340,000)
Exercise of Employee Options – funds received 05/11/2010 6,000 1.222 7,332
Issue of Ordinary Shares – Share Purchase Plan 24/11/2010 1,079,000 2.500 2,697,500
Issue of Ordinary Shares – Placement 03/12/2010 17,000,000 2.500 42,500,000
Less costs of the Placement (2,570,736)
Exercise of Employee Options – funds received 06/01/2011 12,300 1.222 15,031
Exercise of Employee Options – funds received 13/01/2011 20,700 1.222 25,295
Issue of Ordinary Shares – property purchase 31/03/2011 311,419 2.890 900,000
Exercise of Employee Options – funds received 31/03/2011 60,000 0.217 13,020
Exercise of Founding Options – funds received 14/04/2011 750,000 0.102 76,500
Exercise of Options – funds received 20/05/2011 1,000,000 0.152 152,000
Exercise of Founding Options – funds received 17/06/2011 1,000,000 0.102 102,000
Issue of Ordinary Shares – property purchase 24/06/2011 196,640 2.500 491,600
Closing balance at 30 June 2011 153,635,519 137,665,189
Date of Number Issue
Issue of Shares Price
$ $
Opening balance at 1 July 2009 80,340,000 24,711,046
Exercise of Options – funds received 18/09/2009 500,000 0.30 150,000
Exercise of Employee Options – funds received 18/09/2009 30,000 0.365 10,950
Issue of Ordinary Shares – Drake Resources 21/10/2009 2,000,000 0.757 1,515,000
Issue of Ordinary Shares – Entitlement Issue 27/10/2009 12,444,094 1.70 21,154,960
Less costs of the Entitlement Issue (944,430)
Issue of Ordinary Shares – Entitlement issue 25/11/2009 12,416,906 1.70 21,108,740
Less costs of the Entitlement Issue (883,826)
Issue of Ordinary Shares – Titeline 23/12/2009 1,114,152 0.70 779,907
Exercise of Employee Options – funds received 29/01/2010 120,000 0.41 49,200
Exercise of Employee Options – funds received 29/01/2010 600,000 0.25 150,000
Exercise of Founding Options – funds received 29/01/2010 1,000,000 0.25 250,000
Issue of Ordinary Shares – Titeline 05/03/2010 1,894,308 0.70
1,326,016
Exercise of Options – funds received 07/05/2010 1,000,000 0.25 250,000
Exercise of Employee Options – funds received 07/05/2010 120,000 0.70 84,000
Exercise of Employee Options – funds received 20/05/2010 60,000 0.41 24,600
Exercise of Founding Options – funds received 20/05/2010 500,000 0.25 125,000
Exercise of Founding Options – funds received 21/05/2010 250,000 0.25 62,500
Capital reduction via demerger (16,974,986)
Closing balance at 30 June 2010 114,389,460 52,948,677
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NOTES TO THE FINANCIAL STATEMENTS (continued)
15. ISSUED CAPITAL (CONTINUED)
(ii) Movements in options on issue:
Date of Number Exercise Expiry
Issue of Options Price Date
$
Opening balance at 1 July 2010 4,520,000
Exercise of Options – founding 06/06/2007 (1,750,000) 0.102 30/06/2011
Exercise of Options – employees 31/07/2007 (600,000) 0.102 30/06/2011
Exercise of Options 12/09/2007 (1,000,000) 0.152 30/06/2011
Exercise of Options – employees 03/12/2007 (150,000) 0.217 30/06/2011
Exercise of Options – employees 19/06/2009 (120,000) 0.552 31/05/2012
Exercise of Options – employees 04/06/2010 (39,000) 1.222 24/05/2013
Issue of Options – employees 06/05/2011 1,600,000 3.000 30/04/2014
Closing balance as at 30 June 2011 2,461,000
Date of Number Exercise Expiry
Issue of Options Price Date
$
Opening balance as at 1 July 2009 7,860,000
Exercise of Options 18/09/2009 (500,000) 0.30 30/06/2011
Exercise of Options – employees 18/09/2009 (30,000) 0.37 30/06/2011
Issue of Options – employees 04/12/2009 240,000 2.20 31/10/2012
Exercise of Options – employees 29/01/2010 (600,000) 0.25 30/06/2011
Exercise of Options – employees 29/01/2010 (120,000) 0.41 30/06/2011
Exercise of Options – founding 29/01/2010 (1,000,000) 0.25 30/06/2011
Exercise of Options 07/05/2010 (1,000,000) 0.25 30/06/2011
Exercise of Options – employees 07/05/2010 (120,000) 0.70 31/05/2012
Exercise of Options – founding 20/05/2010 (500,000) 0.25 30/06/2011
Exercise of Options – employees 20/05/2010 (60,000) 0.41 30/06/2011
Exercise of Options – founding 21/05/2010 (250,000) 0.25 30/06/2011
Issue of Options – employees 03/06/2010 600,000 1.22 24/05/2013
Closing balance as at 30 June 2010 4,520,000
(iii) Movements in share based payment reserve:
$
Opening balance at 1 July 2010 520,080
Employee share based payments – to employees 864,000
Transferred to Retained earnings/(Accumulated losses) (246,390)
Closing balance at 30 June 2011 1,137,690
Opening balance at 1 July 2009 552,130
Employee share based payments – to employees 271,200
Options issued – for contract drilling services 28,659
Transferred to Retained earnings/(Accumulated losses) (331,909)
Closing balance at 30 June 2010 520,080
16. FINANCE INCOME AND EXPENSE
Group Group
2011 2010
$ $
Finance income – interest income on bank deposits 3,816,443 1,433,666
Finance expense
–
–
Net finance income and expense 3,816,443 1,433,666
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REX MINERALS LTD
NOTES TO THE FINANCIAL STATEMENTS (continued)
17. OTHER INCOME
Group Group
2011 2010
$ $
Net gain on sale of property, plant and equipment – 85
Total other income – 85
18. EMPLOYEE BENEFITS EXPENSE
Group Group
2011 2010
$ $
Wages and salaries 1,104,313 550,069
Share based payments expense 194,400 59,808
Increase in liability for annual leave 127,449 59,051
Total employee benefits expense 1,426,162 668,928
19. CONTROLLED ENTITY DISPOSAL
2011:
No entities were disposed of during the period.
2010:
On 15 June 2010, White Rock Minerals Ltd was demerged from the Rex Group, following approval by Rex
Shareholders at a General Meeting held on 3 June 2010. Existing Rex Shareholders received shares in White Rock
on a 1:3 basis. Prior to the demerger being completed, on 15 June 2010, White Rock acquired Rex’s wholly owned
subsidiary Rex Minerals (NSW) Pty Ltd (now named White Rock Minerals (MTC) Pty Ltd), which includes the
Mt Carrington project in northern NSW. The Mt Carrington project is, as a result, no longer part of the Rex Group.
Group Group
2011 2010
$ $
Consideration
Cash Received – –
Disposal Costs – (98,212)
Inflow/(outflow) of cash – (98,212)
Other consideration (i)
Distribution of White Rock shares – 16,974,986
Net Consideration – 16,876,774
Carrying value of net assets of controlled entity disposed of: (ii) – –
Cash assets – 6,795,404
Property, plant and equipment – 974,985
Exploration and evaluation expenditure – 7,380,768
Provisions – (795,400)
– 14,355,757
Profit/(Loss) on disposal of controlled entity – 2,521,017
(i)
The distribution of the White Rock shares occurred at fair value, based on an independent valuation
undertaken in June 2010 for Rex.
(ii) The carrying value of the assets of the controlled entities disposed of, are all recorded at cost.
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REX MINERALS LTD
NOTES TO THE FINANCIAL STATEMENTS (continued)
20. INCOME TAX EXPENSE
NUMERICAL RECONCILIATION BETWEEN TAX EXPENSE AND PRE-TAX ACCOUNTING PROFIT
Group Group
2011 2010
$ $
Profit/(Loss) for the period 593,266 2,327,007
Income tax using the domestic corporation tax rate of 30% (2009: 30%) 177,980 698,102
Increase in income tax due to:
Non-deductible expenses 262,186 91,522
Decrease in income tax expense due to:
Non-assessable profit on demerger – (785,769)
Recognition and consumption of losses not previously recognised (440,166) (3,855)
Total income tax expense/(benefit) on pre-tax net profit – –
21. EARNINGS PER SHARE
Group Group
2011 2010
cents cents
Earnings Per Share
Basic EPS 0.43 2.48
Diluted EPS per share – cents 0.42 2.36
(a)
Basic earnings per share
The calculation of basic earnings/(loss) per share (EPS) at 30 June 2011 was based on the profit attributable
to ordinary equity holders of $593,266 (2010: $2,327,007) and a weighted average number of ordinary
shares outstanding during the financial year ended 30 June 2011 of 137,764,389 (2010: 93,887,179).
(b)
Diluted earnings per share
The calculation of diluted earnings/(loss) per share (EPS) at 30 June 2011 was based on the profit
attributable to ordinary equity holders of $593,266 (2010: $2,327,007) and a weighted average number
of ordinary shares outstanding after adjustment for unexercised options during the financial year ended
30 June 2011 of 140,225,389 (2010: 98,407,179).
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REX MINERALS LTD
NOTES TO THE FINANCIAL STATEMENTS (continued)
22. RECONCILIATION OF CASH FLOWS FROM OPERATING ACTIVITIES
Group Group
2011 2010
$ $
Cash flows from operating activities
Profit/(Loss) for the period 593,266 2,327,007
Adjustments for non cash items:
Depreciation 62,359 76,137
Share based payment transactions 194,400 59,808
Adjustments for other items:
Proceeds from sale of property plant and equipment (50) (17,000)
Profit on demerger before disposal costs – (2,619,229)
Operating profit/(loss) before changes in working capital and provisions 849,975 (173,276)
(Increase)/decrease in trade and other receivables (562,969) (30,577)
(Decrease)/increase in trade and other payables (183,556) 417,970
(Decrease)/increase in employee benefits 127,449 59,051
Net cash (used in)/from operating activities 230,899 273,168
During the financial year, the Group had the following non-cash investing and financing activities which are not
reflected in the statement of cash flows (refer note 15):
(a)
Issue of options to employees, some of which have been capitalised as exploration expenditure.
(b)
Issue of shares as part of the purchase consideration for land.
23. SHARE BASED PAYMENTS
The Company established a share option plan that entitles employees (other than Directors) to options to purchase
shares in the Company.
The following options were granted during the financial year ending 30 June 2011:
Grant Number Expiry
Employees Entitled Date of Options Date
Key management personnel (A) 06/05/2011 240,000 30/04/2014
Other employees (A) 06/05/2011 1,360,000 30/04/2014
Total 1,600,000
The following options were granted during the financial year ending 30 June 2010:
Grant Number Expiry
Employees Entitled Date of Options Date
Key management personnel (B) 3/6/2010 147,600 24/05/2013
Other employees (C) 3/12/2009 240,000 31/10/2012
Other employees (B) 3/6/2010 452,400 24/05/2013
Total
840,000
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NOTES TO THE FINANCIAL STATEMENTS (continued)
23. SHARE BASED PAYMENTS (CONTINUED)
Key management personnel and employee options (A) are exercisable at a price of $3.00 each, have no vesting
period and expire on 30 April 2014. Key management personnel and employee options (B) are exercisable at a
price of $1.22 each, have no vesting period and expire on 24 May 2013. Employee options (C) are exercisable at a
price of $2.052 each, have no vesting period and expire on 31 October 2012. Each option entitles the holder to
subscribe for 1 ordinary share in the Company.
All options vest on the grant date. Options expire on the expiry date, unless the options have not been exercised and
the employee leaves the Company then the options will lapse if they are not exercised within 60 days of departure.
These options do not entitle the holder to participate in any share issue of the Company or any other related entity.
(a)
Fair value of share options and assumptions
The fair value of the unlisted options have been calculated at the date of the grant based upon the Black
Scholes option pricing model. As the options vest on grant, the fair value of the options is allocated to the
reporting period in which they are granted.
Employees entitled (A) (B) (C)
Fair value at grant date $0.54 $0.28 $0.43
Share price at date of grant $2.51 $1.067 $1.84
Exercise price $3.00 $1.22 $2.052
Expected volatility 38% 40% 40%
Option life (years) 2.49 2.81 2.66
Risk free interest rate 4.96% 4.67% 4.61%
The common method for valuing options is the Black Scholes option pricing model. Black Scholes option
pricing model looks at the past share price as an indicator of the future share price. Black Scholes option
pricing model assumes that high volatility in the share prices is an indicator for a higher valuation as there is
a greater chance of the share price moving significantly (upwards or downwards). The model also assumes
that the options are exercised at or near the expiry date of the options.
(b) Employee expenses
Group Group
2011 2010
$ $
Share options granted in 2010 – recognised in income statement – 59,808
Share options granted in 2010 – capitalised to exploration projects – 211,392
Share options granted in 2011 – recognised in income statement 194,400 –
Share options granted in 2011 – capitalised to exploration projects 669,600 –
Total recognised as employee costs 864,000 271,200
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REX MINERALS LTD
NOTES TO THE FINANCIAL STATEMENTS (continued)
24. FINANCIAL INSTRUMENTS
Exposure to credit risk and interest rate risks arose in the normal course of the Group’s business.
(a)
Credit risk
Management monitors the exposure to credit risk on an ongoing basis. The Group does not require collateral
in respect of financial assets.
At reporting date, cash is held with a number of reputable financial institutions. The maximum exposure to
credit risk is represented by the carrying amount of each financial asset in the balance sheet.
(b)
Fair value
The financial assets and financial liabilities included in assets and liabilities approximate net fair values.
(c)
Liquidity risk
The following are the contractual maturities of financial liabilities excluding derivatives.
Financial liabilities Group Carrying Contractual 1 year
amount cash flows or less 1–2 years
$ $ $ $
2011
Trade and other payables 3,168,171 (3,168,171) (3,168,171) –
3,168,171 (3,168,171) (3,168,171) –
2010
Trade and other payables 1,808,670 (1,808,670) (1,808,670) –
1,808,670 (1,808,670) (1,808,670) –
(d)
Interest rate risk
The Group’s exposure to market interest rates relates primarily to the Group’s short-term deposits (less than
12 months). At balance date, the Group had the following financial assets exposed to interest rate risk:
Group Group
2011 2010
$ $
Cash and cash equivalents 45,084,267 31,474,941
Term Deposits 34,000,000 –
Total Cash and Term Deposits 79,084,267 31,474,941
At balance date, the Group has no financial liabilities exposed to variable interest rate risks.
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NOTES TO THE FINANCIAL STATEMENTS (continued)
24. FINANCIAL INSTRUMENTS (CONTINUED)
The following sensitivity analysis is based on the interest rate risk exposure in existence at the balance sheet
date. At 30 June 2011, if interest rates had moved, as illustrated in the table below, with all other variables
constant, profit and or loss and equity would have been affected as follows:
Profit or Loss Equity
higher/(lower) higher/(lower)
2011 2010 2011 2010
$ $ $ $
Group
+1% (100 basis points) 747,097 336,808 – –
- 1% (100 basis points) (747,097) (336,808) – –
The movements in profit or loss are due to higher/lower interest earnings on cash balances and term
deposits. The movements in equity are directly linked to movements in the Income Statement.
(e)
Impairment losses
None of the Group’s receivables are post due (2010: nil).
25. EXPLORATION EXPENDITURE COMMITMENTS
In order to maintain current rights of tenure to exploration tenements, the Company is required to perform
minimum exploration work to meet the minimum expenditure requirements. These obligations are expected to
be fulfilled in the normal course of operations. Mining interests may be relinquished or joint ventured to reduce
this amount. The various State governments have the authority to defer, waive or amend the minimum
expenditure requirements.
Group Group
2011 2010
$ $
Not later than one year 682,000 682,000
Later than one year but not later than five years 2,728,000 2,728,000
26. CAPITAL EXPENDITURE COMMITMENTS
Group Group
2011 2010
$ $
Not later than one year – 3,600,000
Later than one year but not later than five years – –
27. CONTINGENCIES
The Directors are of the opinion that there are no matters for which provision is required in relation to any
contingencies, as it is not probable that a future sacrifice of economic benefit will be required or the amount is
not capable of reliable measurement.
There are no other contingent liabilities or assets at the date of this report.
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REX MINERALS LTD
NOTES TO THE FINANCIAL STATEMENTS (continued)
28. KEY MANAGEMENT PERSONNEL DISCLOSURES
The following were key management personnel of the Group at any time during the reporting period and unless
otherwise indicated were key management personnel for the entire period.
Name Position held Appointment detail
Non-Executive Directors
Mr Paul Chapman Chairperson Appointed 18 April 2007
Mr Richard Laufmann Chairperson – Audit Committee Appointed 16 May 2007
Executive Director
Mr Steven Olsen Managing Director Appointed 13 May 2007
Executives
Ms Amber Rivamonte Company Secretary Appointed 16 July 2007
Ms Janet Mason CFO Appointed 19 December 2008
Mr Patrick Say Geology Manager Appointed 1 July 2010
Mr Alister Maitland was appointed to the Board 16 September 2011.
There have been no other changes to key management personnel between 1 July 2011 and the date of this report.
Mr Brian Phillips and Mr Geoffrey Lowe were key management personnel during the prior period.
The key management personnel compensation included in “Employee Benefits Expenses” (see note 18) and
“Exploration and Evaluation” (see note 10) are as follows:
Group Group
2011 2010
$ $
Short term employee benefits 1,006,660 892,821
Post employment benefits 78,449 72,029
Share based payments 129,600 41,328
1,214,709 1,006,178
(a) Key management personnel compensation disclosures
Information regarding individual Directors and Executives compensation and some equity instrument
disclosures as permitted by Corporation Regulations 2M.3.03 and 2M.6.04 are provided in the
Remuneration Report section of the Directors’ Report on pages 17 to 32.
No key management personnel has entered into a material contract or related party transactions with the
Group since the end of the previous financial year and there were no material contracts involving Directors’
interests existing at year end.
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NOTES TO THE FINANCIAL STATEMENTS (continued)
28. KEY MANAGEMENT PERSONNEL DISCLOSURES (CONTINUED)
(b)
Options over equity instruments
The movement during the reporting period in the number of options over ordinary shares in Rex Minerals
Ltd held, directly, indirectly or beneficially, by each key management person, including their related parties,
is as follows:
Vested and
Held at Exercised Granted Vested Held at Exercisable
1 July during as comp- during 30 June at 30 June
2011 Note 2010 year ensation year 2011 2011
Directors
Mr Paul Chapman (i) 250,000 250,000 – – – –
Mr Richard Laufmann (ii) 1,000,000 1,000,000 – – – –
Mr Steven Olsen (iii) 500,000 500,000 – – – –
Executives
Ms Amber Rivamonte 73,800 – 80,000 80,000 153,800 153,800
Ms Janet Mason 73,800 – 80,000 80,000 153,800 153,800
Mr Patrick Say 73,800 – 80,000 80,000 153,800 153,800
Vested and
Held at Exercised Granted Vested Held at Exercisable
1 July during as comp- during 30 June at 30 June
2010 Note 2009 year ensation year 2010 2010
Directors
Mr Paul Chapman (i) 1,000,000 750,000 – – 500,000 250,000
Mr Richard Laufmann (ii) 1,000,000 – – – 1,000,000 1,000,000
Mr Brian Phillips – – – – – –
Mr Steven Olsen (iii) 1,500,000 1,000,000 – – 500,000 500,000
Mr Geoffrey Lowe 600,000 – – 200,000 600,000 600,000
Executives
Ms Amber Rivamonte 600,000 600,000 73,800 273,800 73,800 73,800
Ms Janet Mason 120,000 120,000 73,800 113,800 73,800 73,800
Options over ordinary shares that were held by related parties of key management personnel are disclosed below.
(i)
Held indirectly through Stone Poneys Nominees Pty Ltd as trustee for the Chapman Superannuation Fund
and the Chapman Investment Fund. All of these options were acquired in 2007 as founding options and not
granted as compensation to key management personnel.
(ii) Held indirectly through Natalie Laufmann. All of these options were acquired in 2007 as founding options
and not granted as compensation to key management personnel.
(iii) Held indirectly through S&S Olsen Pty Ltd as trustee for the Olsen Family Trust. All of these options were
acquired in 2007 as founding options and not granted as compensation to key management personnel.
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REX MINERALS LTD
NOTES TO THE FINANCIAL STATEMENTS (continued)
28. KEY MANAGEMENT PERSONNEL DISCLOSURES (CONTINUED)
(c) Movements in shares
The movement during the reporting period in the number of ordinary shares in Rex Minerals Ltd held,
directly, indirectly or beneficially, by key management person, including their related parties, is as follows:
Received
Held at on Exercise Held at
Note 1 July 2010 Purchases of options Sales 30 June 2011
2011
Directors
Mr Paul Chapman
(i) 3,270,000 4,000 250,000 – 3,524,000
Mr Richard Laufmann
(ii) 2,500,000 – 1,000,000 – 3,500,000
Mr Steven Olsen
(iii) 5,500,000 2,000 500,000 – 6,002,000
Executives
Ms Amber Rivamonte
850,000 – – – 850,000
Ms Janet Mason
130,000 – – – 130,000
Mr Patrick Say
120,000 – – – 120,000
Received
Held at on Exercise Held at
Note 1 July 2009 Purchases of options Sales 30 June 2010
2010
Directors
Mr Paul Chapman
(i) 2,500,000 20,000 750,000 – 3,270,000
Mr Richard Laufmann
(ii) 2,500,000 – – – 2,500,000
Mr Brian Phillips
(iv) 311,409 80,000 – 70,000 321,409
Mr Steven Olsen
(iii) 4,500,000 – 1,000,000 – 5,500,000
Mr Geoffrey Lowe
10,000 – – 10,000 –
Executives
Ms Amber Rivamonte
250,000 – 600,000 – 850,000
Ms Janet Mason
10,000 – 120,000 – 130,000
Shares that were held by related parties of key management personnel are disclosed below.
(i) Held indirectly through Stone Poneys Nominees Pty Ltd as trustee for the Chapman Superannuation
Fund and the Chapman Investment Fund. 2,500,000 shares are founder shares and were acquired at
$0.01 each.
(ii) Held indirectly through Natalie Laufmann. 2,500,000 shares are founder shares and were acquired at
$0.01 each.
(iii) Held indirectly through S&S Olsen Pty Ltd as trustee for the Olsen Family Trust. 4,500,000 shares are
founder shares and were acquired at $0.01 each
(iv) Held indirectly through Thylacine Pty Ltd as trustee for the Brian Phillips Superannuation Fund.
(d) Director related entities
There were no other transactions with Director related entities.
29. RELATED PARTIES
(a)
Identity of related parties
The Group has a related party relationship with its subsidiaries (see note 30), and with its key management
personnel (see note 28).
(b)
Subsidiaries
Loans are made by the Company to wholly owned subsidiaries. Loans outstanding between the Company and
its subsidiaries have no fixed date of repayment but are repayable at call, and are non-interest bearing.
During the year ended 30 June 2011, such loans totalled $59,786,815 (2010: $22,032,883).
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NOTES TO THE FINANCIAL STATEMENTS (continued)
30. GROUP ENTITIES
Country of
Incorporation 2011 2010
Ownership Interest
Parent entity
Rex Minerals Ltd Australia
Subsidiaries
Rex Minerals (SA) Pty Ltd Australia 100% 100%
Rex Minerals (Iron Ore) Pty Ltd Australia 100% 100%
Rex Hillside (Property) Pty Ltd Australia 100% 100%
The subsidiaries are small proprietary companies and are not required to prepare financial statements.
Consequently no individual audit reports have been issued for them.
31. PARENT ENTITY DISCLOSURES
As at, and throughout, the period ending 30 June 2011 the parent company of the Group was Rex Minerals Ltd.
Group Group
2011 2010
$ $
Result of the parent entity
Profit for the period 593,266 2,327,007
Other comprehensive income – –
Total comprehensive income for the period 593,266 2,327,007
Financial position of the parent entity at year end
Current assets 79,978,364 31,726,682
Total assets 140,184,642 54,055,415
Current liabilities 581,993 626,543
Total liabilities 581,993 626,543
Total equity of the parent entity comprising of:
Share capital 137,665,189 52,948,677
Reserves 1,137,690 520,080
Retained earnings 799,770 (39,885)
Total equity 139,602,649 53,428,871
32. SUBSEQUENT EVENTS
On 16 September 2011 Mr Alister Maitland was appointed Non-Executive Director of Rex Minerals Ltd.
There have been no additional subsequent events to 30 June 2011 to disclose at the date of this report.
33. AUDITORS’ REMUNERATION
Group Group
2011 2010
$ $
KPMG Australia
Audit services 40,000 34,500
Other services – –
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REX MINERALS LTD
DIRECTORS’ DECLARATION
1 In the opinion of the directors of Rex Minerals Limited (the Company):
(a)
the consolidated financial statements and notes and the Remuneration report, identified within the Directors’
report, are 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 2011 and of its performance
for the financial year ended on that date; and
(ii) complying with Australian Accounting Standards (including the Australian Accounting Interpretations)
and the Corporations Regulations 2001; and
(b)
there are reasonable grounds to believe that the Company will be able to pay its debts as and when they
become due and payable.
2 The directors have been given the declarations required by Section 295A of the Corporations Act 2001 from the
chief executive officer and chief financial officer for the financial year ended 30 June 2011.
3 The directors draw attention to Note 2 to the consolidated financial statements, which includes a statement of
compliance with International Financial Reporting Standards.
Signed in accordance with a resolution of the directors:
Steven Olsen
Managing Director
Dated at Melbourne this 22nd day of September 2011
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LEAD AUDITOR’S INDEPENDENCE DECLARATION UNDER
SECTION 307C OF THE CORPORATIONS ACT 2001
Lead Auditor’s Independence Declaration under Section 307C of the Corporations Act 2001
To: the directors of Rex Minerals Limited
I declare that, to the best of my knowledge and belief, in relation to the audit for the financial year ended
30 June 2011 there have been:
(i) no contraventions of the auditor independence requirements as set out in the Corporations Act
2001 in relation to the audit; and
(ii) no contraventions of any applicable code of professional conduct in relation to the audit.
KPMG
Alison Kitchen
Partner
Melbourne
22 September 2011
KPMG, an Australian partnership and a member firm of the KPMG network
of independent member firms affiliated with KPMG International Cooperative
(“KPMG International”) a Swiss entity.
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REX MINERALS LTD
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF REX MINERALS LIMITED
Independent auditor’s report to the members of Rex Minerals Limited
Report on the financial report
We have audited the accompanying financial report of Rex Minerals Limited (the company), which
comprises the consolidated statement of financial position as at 30 June 2011, and consolidated statement
of comprehensive income, consolidated statement of changes in equity and consolidated statement of cash
flows for the year ended on that date, notes 1 to 33 comprising a summary of significant accounting
policies and other explanatory information and the directors’ declaration of the Group comprising the
company and the entities it controlled at the year’s end or from time to time during the financial year.
Directors’ responsibility 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
is free from material misstatement whether due to fraud or error. In note 2 the directors also state, in
accordance with Australian Accounting Standard AASB 101 Presentation of Financial Statements, that the
financial statements of the Group comply with International Financial Reporting Standards.
Auditor’s responsibility
Our responsibility is to express an opinion on the financial report based on our audit. We conducted our
audit in accordance with Australian Auditing Standards. These Auditing Standards require that we comply
with relevant ethical requirements relating to audit engagements and plan and perform the audit to obtain
reasonable assurance whether the financial report is free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the
financial report. The procedures selected depend on the auditor’s judgement, including the assessment of the
risks of material misstatement of the financial report, whether due to fraud or error. In making those risk
assessments, the auditor considers internal control relevant to the entity’s preparation of the financial report
that gives a true and fair view in order to design audit procedures that are appropriate in the circumstances, but
not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also
includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting
estimates made by the directors, as well as evaluating the overall presentation of the financial report.
We performed the procedures to assess whether in all material respects the financial report presents fairly,
in accordance with the Corporations Act 2001 and Australian Accounting Standards, a true and fair view
which is consistent with our understanding of the Group’s financial position and of its performance.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
audit opinion.
KPMG, an Australian partnership and a member firm of the KPMG network
of independent member firms affiliated with KPMG International Cooperative
(“KPMG International”) a Swiss entity.
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REX MINERALS LTD
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF REX MINERALS LIMITED
Independence
In conducting our audit, we have complied with the independence requirements of the Corporations Act 2001.
Auditor’s opinion
In our opinion:
(a) the 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 2011 and of its
performance for the year ended on that date; and
(ii) complying with Australian Accounting Standards and the Corporations Regulations 2001.
(b) the financial report also complies with International Financial Reporting Standards as disclosed
in note 2.
Report on the remuneration report
We have audited the Remuneration Report, identified within the directors’ report, for the year ended 30
June 2011. 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 auditing
standards.
Auditor’s opinion
In our opinion, the remuneration report of Rex Minerals Limited for the year ended 30 June 2011, complies
with Section 300A of the Corporations Act 2001.
KPMG
Alison Kitchen
Partner
Melbourne
22 September 2011
KPMG, an Australian partnership and a member firm of the KPMG network
of independent member firms affiliated with KPMG International Cooperative
(“KPMG International”) a Swiss entity.
Page 63
REX MINERALS LTD
ADDITIONAL SHAREHOLDER INFORMATION
Additional information required by the ASX Limited Listing Rules and not disclosed elsewhere in this report is set out below.
a) Substantial shareholders lodged with the Company as at 7 September 2011
Name of Ordinary Shareholder Number of Shares % of Shares Held
Grand South Development 11,785,777 7.67%
BlackRock Investment Management (Australia) Limited 9,008,313 5.86%
JP Morgan Chase & Co 8,846,082 5.76%
Greenstone Property Pty Ltd 8,008,460 5.20%
b) Listing of 20 largest shareholders as at 7 September 2011
Number of % of
Rank Name Designation Shares Held Issued Capital
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
J P Morgan Nominees Australia Ltd 27,018,202 17.59%
National Nominees Ltd 20,254,862 13.18%
Grand South Development Limited 11,785,777 7.67%
HSBC Custody Nominees Aust Ltd 6,098,945 3.97%
Greenstone Property Pty Ltd 6,008,460 3.91%
S & S Olsen PL 6,002,000 3.91%
Natalie Laufmann 3,500,000 2.28%
Citicorp Nom PL 2,809,705 1.83%
Greenstone Property Pty Ltd 2,000,000 1.30%
Stone Poneys Nominees PL Chapman S/F A/C 1,772,000 1.15%
Stone Poneys Nominees PL Chapman Inv Fund 1,752,000 1.14%
Bond Street Custodians Ltd Macquarie Smaller 1,503,765 0.98%
Avoca Resources Ltd 1,000,000 0.65%
Philippa Jean Laufmann Laufmann Family A/C 910,000 0.59%
James Ronald Selkirk 900,000 0.59%
Amber Rivamonte 850,000 0.55%
Bond Street Custodians Ltd Macquarie Alpha Op 817,081 0.53%
UBS Wealth Mgnt Aust Nom 777,752 0.51%
RBC Dexis Investor Services BK Cust Account 577,357 0.38%
Elliott Brian W & LJ BW Elliott Fam S/F 553,034 0.36%
Total
96,890,940 63.07%
c) Distribution of shareholders as at 7 September 2011
% of
Range Total Holders Units Issued Capital
1 – 1,000 829 485,497 0.32%
1,001 – 5,000 1,843 5,338,523 3.47%
5,001 – 10,000 803 6,331,308 4.12%
10,001 – 100,000 870 25,090,711 16.33%
100,001 – over 118 116,389,480 75.76%
Total
4,463 153,635,519 100.00%
d) Number of shareholders holding less than a marketable parcel as at 7 September 2011
188
e) Voting rights
On a show of hands every shareholder of fully paid ordinary shares present in person or by proxy shall have one
vote and upon a poll, each share shall have one vote.
f) Stock exchange listing
Rex Minerals Ltd is listed on the Australian Stock Exchange. The Company’s ASX code is RXM.
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contact
A 209 Dana Street Ballarat
Victoria 3350 Australia
P PO Box 626W Ballarat West
Victoria 3350 Australia
ABN 12 124 960 523
T +61 (0) 3 5337 4000
F +61 (0) 3 5331 1776
E
info@rexminerals.com.au
W www.rexminerals.com.au