R
RRXM 18
R MRXM 18
RXM 1
RRRRRXM 181
RRXMRXM 18
RRXMM 181M 18818
XM 181
RR MM 18M 1M 1
RXM 18M 18
RXM M 18
RXM 18M 18
RXM 18
RXM 18M 1
RXM 18M 18M 18M 18
RXM 1
RXM 18
RXM 18
RXM 18
RXM 18
RXM 18
RXM 18
RXM 18
RXM 1
RRRXM 18
RXM 18
RRR MM 8
RXM 18
RXMRXMRXM 1
RXM 18MR MRXMRXMXM
RXM
RXM 1
RXM 18
RXM 1
RXM 18
RXM 1
RXM 181
RXM 18
XM 18MM 1M 1
XM 1
RXM 1
RXM 18
RXM 18
RXM 1818M 1M 1888
RXM 18
RXM 18
RXMM 18
RXM 18
XM 18M 1M
RXM 18
RXM 18
RXMRXMRXM 18
RXM 18
RXM 1
RXM 18
RXM 18
RXM 18
RRRXM
RXM 18
RXM 18M 1M 181
RXMRXRXM MM 1
XM 1M 18
XM 18M 18
RXMMRXM 1
RXM 18
RXM 18
RXM 18
RXM 18
RXM 18
RXM 18
RXM 18
RXM
8
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8
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R
ANNUAL REPORT
A
B
N 12 124 960 523
ANNUAL REPORT
N 12 124 960 523
B
A
CORPORATE DIRECTORY
DIRECTORS
Dr David Carland (Non-Executive Chairman)
Mr Richard Laufmann (CEO and Managing Director)
Mr Alister Maitland (Non-Executive Director)
Mr Mitchell H Hooke AM (Non-Executive Director)
COMPANY SECRETARY
Ms Kay Donehue
PRINCIPAL and REGISTERED OFFICE
Level 19, 11 Waymouth Street
Adelaide, South Australia 5000
CONTACT DETAILS
Rex Minerals Ltd
PO Box 3435
Rundle Mall, South Australia 5000
Telephone: +61 (0) 8 8299 7100
Facsimile: +61 (0) 8 8299 7199
Email:
rex@rexminerals.com.au
Website: www.rexminerals.com.au
OPERATION LOCATIONS
SHARE REGISTRARS
Computershare Investor Services Pty Limited
Yarra Falls
452 Johnston Street
Abbotsford, Victoria 3067
Telephone: +61 (0) 3 9415 4000 (investors)
1300 850 505 (investors within Australia)
AUDITORS
KPMG Australia
151 Pirie Street
Adelaide, South Australia 5000
BANKERS
ANZ Banking Group Limited
Level 21, 11 Waymouth Street
Adelaide, South Australia 5000
Ord Minnett Limited
Level 7, 161 Collins Street
Melbourne, Victoria 3000
LEGAL ADVISORS
Baker McKenzie
Level 19, 181 William Street
Melbourne, Victoria 3000
SOUTH
AUSTRALIA
A
A U S T R A L I A
SOUTH
AUSTRALIA
Pine Point
Adelaide
ANNUAL REPORT 30 JUNE
TABLE OF CONTENTS
LETTER FROM THE CHAIRMAN AND THE CHIEF EXECUTIVE OFFICER
REVIEW OF OPERATIONS
TENEMENT SCHEDULE
DIRECTORS’ REPORT
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
CONSOLIDATED STATEMENT OF CASH FLOWS
NOTES TO THE FINANCIAL STATEMENTS
DIRECTORS’ DECLARATION
LEAD AUDITOR’S INDEPENDENCE DECLARATION
INDEPENDENT AUDITOR’S REPORT
ADDITIONAL SHAREHOLDER INFORMATION
2-3
4-6
6
7-18
19
20
21
22
23-39
40
41
42-45
46
1
REX MINERALS LTD
LETTER FROM THE CHAIRMAN AND
THE CHIEF EXECUTIVE OFFICER
A
B
N 12 124 960 523
A Level 19, 11 Waymouth Street
Adelaide South Australia 5000
T (08) 8299 7100 F (08) 8299 7199
P PO Box 3435 Rundle Mall
South Australia 5000
E rex@rexminerals.com.au
W www.rexminerals.com.au
Dear Fellow Shareholder,
At the outset, we would like to share with you our views on the current condition and outlook for the global copper market and the
consequential outlook for Rex Minerals Ltd (Rex).
Fundamentally, the current state of global trade and commerce reflects the solid underlying economic growth in most regions overlain
with some marginal disruption. This disruption –headlined the so-called ‘trade wars’ – and most specifically between the US and China,
is credited with much of the negative sentiment in the global copper market. Over the last 12 months, for the most part copper traded
above the US$3.00/lb threshold, trading up to nearly US$3.30/lb before being sold down dramatically in June, as depicted
in the following chart.
Along with most market commentators, we consider this recent decline in the copper price to be a short-term aberration to the longer-
term fundamentals of strong copper demand growth and an increasing supply deficit.
Whilst these temporary winds batter short-term confidence, the underlying trend of a world where copper is THE commodity to watch
has only strengthened. Indeed, it is very difficult to find an analyst, producer, consumer or commentator who does not accept the
inevitability of the supply crunch approaching.
In this context, it must be remembered that the Hillside discovery equates to each Rex shareholder owning approximately
15lb of in-situ copper per share.
Thus, the copper market outlook and Rex’s solid positioning for development underscores our confidence in the Hillside Project.
In this respect, it is worth reiterating the following salient facts:
(cid:129) Exploration is not successfully discovering replacement ore deposits.
(cid:129) Grade is declining quickly, leading to lower productivity and higher costs.
(cid:129) Cost and time to development are growing, with average discovery-to-development timeframes for copper discoveries
now in the order of 15-25 years.
(cid:129) Copper is crucial to every world energy scenario. The 3% annual growth rate of copper demand achieved over the last
100 years must increase significantly to underpin the rapid electrification of energy supply and transportation occurring
across the globe.
REX MINERALS LTD
LETTER FROM THE CHAIRMAN AND
THE CHIEF EXECUTIVE OFFICER
A
B
N 12 124 960 523
A Level 19, 11 Waymouth Street
Adelaide South Australia 5000
T (08) 8299 7100 F (08) 8299 7199
P PO Box 3435 Rundle Mall
South Australia 5000
E rex@rexminerals.com.au
W www.rexminerals.com.au
On this basis, your Board believes its strategy to bring the Hillside Project into production and to explore the highly-prospective
Gawler Craton on the South Australian Yorke Peninsula remains sound.
That Rex has successfully managed its way through many vulnerable years on our path to development is testament to our confidence
and the resilience and hard work of our team. We retain 100% ownership of the Hillside Project, remain debt free and have increased
our available cash to support us through the challenges of this dynamic market. We believe we are well positioned to maximise
leverage to the copper price growth that we expect.
To consolidate our cash position, Rex raised $7 million, before costs this year at 11c per share, through a Placement and a Share
Purchase Plan. As stated, the proceeds from this capital raising are targeted to continue to de-risk the Hillside Project.
We thank those existing and new shareholders who share in our vision and supported our fund raising.
Importantly, the SA Government is considering our Program for Environment Protection and Rehabilitation (PEPR) submitted in
February this year. Rex has received feedback from the various Departments involved in the review and no material issues were raised.
Once our response has been formalised, Rex will update and submit final PEPR documents to the Government.
New development of long-term projects such as Hillside require foresight, commitment and stable support from Government and policy
makers. Australia has long enjoyed the benefits of this reputation, internationally. Given the challenges now faced domestically, we look
forward to working constructively with the new South Australian Minister to find solutions and secure this development for the benefit
of all stakeholders.
Throughout this process, we will continue to work with the community of the Yorke Peninsula to ensure the Hillside Project provides
mutual benefit to shareholders, the surrounding community and the State economy.
Yours sincerely,
Dr David Carland
Chairman
Mr Richard Laufmann
Chief Executive Officer
REX MINERALS LTD
REVIEW OF OPERATIONS For the year ended 30 June 2018
HILLSIDE PROJECT, YORKE PENINSULA, SOUTH AUSTRALIA
Rex Minerals Ltd (Rex or the Company) announced on 12 June 2018 that it had successfully completed a placement to
professional and sophisticated investors in Australia and overseas to raise $6.0 million at $0.11 per share. The placement
was oversubscribed and Baillieu Holst Ltd acted as Lead Manager and Arlington Group Asset Management Ltd (UK)
acted as Co-Manager to the placement.
The placement was undertaken in two tranches:
(cid:129) Tranche 1 – comprising of 33.1 million shares, raising $3.6 million, before costs and was issued on 18 June 2018.
(cid:129) Tranche 2 – comprising of 21.4 million shares, raising $2.4 million, before costs and was issued on 25 July 2018,
following shareholder approval.
Rex also invited existing shareholders to invest in the Company through a Share Purchase Plan (SPP) at the placement
price of $0.11 per share. The SPP raised an additional $1 million, before costs and was also issued on 25 July 2018.
Shareholders granted approval of the issue of shares for Tranche 1, Tranche 2 and the SPP at a General Meeting held on
Friday, 20 July 2018. Approval was also granted for the issue of placement shares to the Chief Executive Officer, Richard
Laufmann. All three Non-Executive Directors participated in the SPP.
Proceeds from the Capital Raising will be used to de-risk the Hillside Project further, whilst seeking to enhance the
investment value of Rex. This will include the following activities which are already underway and progressing well:
(cid:129)
(cid:129)
updating the Extended Feasibility Study (EFS) capital estimate to 2018 dollars; and
commissioning a Chinese Feasibility Study (CFS) with the objective of reducing the total capital cost.
The balance will be used for corporate and administration working capital, including finalising the responses to the South
Australian (SA) Government Regulator on the Program for Environment Protection and Rehabilitation (PEPR).
Rex continued to focus on preparation of its PEPR for the Hillside Project throughout the year. After submission of the
full PEPR documents in February 2018, the SA Government Regulator undertook an initial adequacy check, and
determined that all required areas have been included.
Photo courtesy of Yorke Peninsula Country Times. Community consultation public meeting held by Hillside Mine
Community Voice (HMCV) including attendees from Rex and the SA Government Regulator.
Work continues on updating the EFS capital estimate to 2018 conditions and prices. The consultant group Wood (trading
as Amec Foster Wheeler Australia Pty Ltd) is revising the project capital and operating costs by updating rates and
equipment pricing for the process plant and infrastructure. In addition, Rex is updating the capital and operating costs for
the mobile fleet and associated mining infrastructure.
ANNUAL REPORT
2 0 1 8
4
REX MINERALS LTD
REVIEW OF OPERATIONS (Continued) for the year ended 30 June 2018
In July 2018, China Nerin Engineering Co., Ltd (Nerin) commenced work on the CFS. The CFS will be based on the
Australian EFS and will also comply with the regulations of the Nonferrous Metal Project Feasibility Study Report and
related standards and codes in China. All the re-design work for the civil and structural design work, together with the
equipment proposed and selected within the CFS, will comply with the relevant Australian Standards. The Nerin project
team has completed their Australian site visit to the Hillside Project and Rex’s technical team travelled to China to meet
with Nerin, work is continuing on the CFS.
Study Manager, John Burgess meets with members of Nerin's technical team in China.
Rex initiated a lease wide review of its strategic licenses to further evolve the exploration target portfolio which has
generated new regional Iron Ore Copper Gold (IOCG) targets of greater than 5Mt under minimal cover. The Company is
now considering the timing and financing required to progress these, in what we now consider a highly-prospective IOCG
land package.
The Hillside Project is situated 12 kilometres south of the township of Ardrossan on the Yorke Peninsula, South Australia
(Figure 1). The Hillside Project is planned around an open pit mine, initially with a 13-year mine life, producing
approximately 35,000 tonnes of copper contained in concentrate and 24,000 ounces of gold per annum.
Figure 1: Location of the Hillside Project and Rex’s exploration licences on the Yorke Peninsula.
5
REX MINERALS LTD
REVIEW OF OPERATIONS (Continued) for the year ended 30 June 2018
TENEMENT SCHEDULE
Tenement
Location
Lease Status
Area Type
Current Area
Expiry Date
EL5508
EL5683
EL5981
EL6100
EL6136
EL6143
Moonta South
Granted
Moonta South
Granted
Moonta South
Granted
Moonta South
Granted
Moonta South
Granted
Moonta South
Granted
EL6189 1
Moonta South
Granted
EL6245 2
Moonta South
Granted
ML6438
Hillside
Granted
EML6439 3
Hillside
Granted
MPL146
Hillside
Granted
km2
km2
km2
km2
km2
km2
km2
km2
Ha
Ha
Ha
1 Previously known as EL5056.
2 Previously known as EL5055.
3 Renewal documentation submitted to the SA Government and currently being processed.
74
21
122
94
185
104
354
1,168
2,998
225
94
04/11/2018
09/06/2020
22/06/2019
16/01/2020
19/03/2020
15/04/2020
01/08/2019
01/08/2019
15/09/2035
15/09/2018
15/09/2035
ANNUAL REPORT
2 0 1 8
6
ANNUAL REPORT
DIRECTORS’
REPORT
For the year ended 30 June 2018
7
REX MINERALS LTD
DIRECTORS’ REPORT For the year ended 30 June 2018
The Directors present their report together with the consolidated financial statements of the Group comprising of
Rex Minerals Ltd (the Company) and its subsidiaries (the Group or Rex), for the financial year ended 30 June 2018
and the auditors’ report thereon.
DIRECTORS
The Directors of the Company at any time during or since the end of the financial year are:
Name, qualifications and
independence status
Dr David Carland
Chairman
Independent Non-
Executive Director
(PhD (Econometrics), MEc,
BEc (Hons), MAICD)
Mr Richard Laufmann
Chief Executive Officer
and Managing Director
(B.Eng (Mining), MAusIMM,
MAICD)
Mr Alister Maitland
Independent Non-
Executive Director
(B.Com, FAICD, FAIM,
SF Fin)
Experience, special responsibilities and other directorships
Dr David Carland has been a Director since 12 December 2013 and was appointed
Chairman of Rex Minerals on 1 January 2014. Dr Carland also serves as a member
of the Company’s Audit Committee and its Remuneration Committee.
Dr Carland has over 35 years of investment banking and commercial experience in both
the private sector and government. He is the Executive Director of Australian Resources
Development Limited, a company focused on the provision of specialised advice and
assistance on the structuring, financing and developing of energy and resource projects.
Dr Carland was the co-founder and part-owner of BurnVoir Corporate Finance Limited
(BurnVoir), an independent specialist investment banking firm focusing on the energy,
resource and infrastructure sectors. Prior to establishing BurnVoir, Dr Carland was
executive vice president and head of energy and power at Bankers Trust, and before that,
he was deputy managing director and head of corporate finance at UBS Australia. He was
previously a non-executive director of Indophil Resources NL. Dr Carland has held senior
executive roles with the CRA Group (now Rio Tinto), including management of the
commercial arrangements for the purchase of the Gladstone Power Station.
Mr Richard Laufmann is a founding Director of Rex Minerals and was formerly a
non-executive director (since 2007). He was appointed Chief Executive Officer and
Managing Director (CEO) of the Company on 23 April 2015.
Mr Laufmann is a mining engineer with broad experience in the resources sector,
both corporate and operational.
Mr Laufmann’s most recent engagement was for seven years as chief executive
officer of Indophil Resources NL (until January 2015, an ASX listed company with
a large copper-gold Joint Venture in the Philippines) and prior to that, five years as
chief executive officer of Ballarat Goldfields NL. Mr Laufmann also previously led
WMC Resources Limited’s gold business as general manager-operations.
Mr Alister Maitland was appointed a Director of Rex Minerals on 16 September
2011. He is Chairman of the Audit Committee and a member of the
Remuneration Committee.
Mr Maitland is a former executive director of ANZ Banking Group with a
background in international finance. His 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
that country’s 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, director of Lihir Gold Ltd and Malayan Banking
Berhad (Maybank).
ANNUAL REPORT
2 0 1 8
8
REX MINERALS LTD
DIRECTORS’ REPORT (Continued) for the year ended 30 June 2018
DIRECTORS (CONTINUED)
Name, qualifications and
independence status
Mr Mitchell H Hooke AM
Independent Non-
Executive Director
(B.Rur.Sc., UNE, MAIA,
MAICD)
Experience, special responsibilities and other directorships
Mr Mitchell H Hooke AM was appointed a Director of Rex Minerals on 4 August 2015.
He is Chairman of the Remuneration Committee and a member of the Audit Committee.
Mr Hooke is globally-recognised for his in-depth knowledge and strategic leadership in
Australian and global public policy advocacy, as well as delivering on practical operational
issues in the development of economic, social and environmental policy and practice across
the minerals, agriculture, and food and grocery industries in Australia and internationally.
Mr Hooke was the chief executive officer of the Minerals Council of Australia from mid-
2002 until the end of 2013. He is the Chairman of Partners in Performance International,
a Director of The Menzies Research Centre Ltd and with a long and strong rural
background, he is an Independent Director of Grain Producers Australia Limited. He is a
Non-Executive Director of GTL Energy Ltd, and was formerly a non-executive director of
Elgin National Industries. Mr Hooke is also a member of the Advisory Boards of
Micromine Ltd and The University of New England (UNE) Advisory Group.
COMPANY SECRETARY
Ms Kay Donehue
(GradDipACG, GIA(Cert), AGIA, ICSA, AAICD, Chartered Secretary)
Ms Donehue has over 25 years’ experience in the mining and banking industries, and most recently has focused extensively
on company secretarial and governance roles in the mining sector. Ms Donehue is an Associate of the Governance Institute
of Australia. She is also the Company Secretary of Indophil Resources Pty Ltd and prior to that held a range of roles with
Lafayette Mining Limited and WMC Resources Limited.
DIRECTORS’ MEETINGS
The numbers of meetings of the Company’s Board of Directors and of each Board Committee held during the financial
year and the numbers of meetings attended by each Director were:
Director
Board Meetings
Audit Committee Meetings
Dr David Carland
Mr Richard Laufmann 1
Mr Alister Maitland
Mr Mitchell Hooke
A
5
5
5
5
B
5
5
5
5
A
2
2
2
2
B
2
2
2
2
A – Number of meetings attended.
B – Number of meetings held during the year whilst the Director held office.
Remuneration Committee
Meetings 2
A
–
–
–
–
B
–
–
–
–
1 Mr Laufmann is not a member of the Committees but attends meetings as appropriate by invitation.
2 Any matters for consideration by the Remuneration Committee were managed directly by the Board and accordingly, no separate meetings were
held by the Remuneration Committee during the year.
9
REX MINERALS LTD
DIRECTORS’ REPORT (Continued) for the year ended 30 June 2018
CORPORATE GOVERNANCE STATEMENT
Rex has adopted comprehensive systems of control and accountability as the basis for the administration and compliance
of effective and practical corporate governance. These systems are reviewed regularly and revised if appropriate.
The Board is committed to administering the Company’s policies and procedures with transparency and integrity, pursuing
the genuine spirit of good corporate governance practice. To the extent they are applicable, Rex has adopted the ASX
Corporate Governance Council’s Corporate Governance Principles and Recommendations, 3rd Edition. As the Company’s
activities transform in size, nature and scope, additional corporate governance structures will be considered by the Board
and assessed as to their relevance.
In accordance with the ASX Principles and Recommendations and the ASX Listing Rules, the Corporate Governance
Statement and a more detailed discussion of the Company’s approach can be found on its website:
www.rexminerals.com.au/company-profile.
This Corporate Governance Statement is dated 30 June 2018 and was approved by the Board on 13 September 2018.
PRINCIPAL ACTIVITIES
The principal activity of the Group during the year was minerals exploration, evaluation and development in Australia.
Rex intends to make the best use of, and fully exploit, the Hillside Resource, and remains committed to the development
of the Hillside Project. There were no significant changes in the nature of the Group’s principal activities during the year.
The Group’s principal objective is to create value through the discovery and development of mineral resources.
Our strategy to deliver on this objective is to:
(cid:129) finalise our PEPR to ensure all approvals are in place so that the Hillside Project is positioned to start up
(cid:129)
(cid:129)
(cid:129)
coincident with the copper supply deficit currently emerging;
evolve the pool of corporate and financing options available;
optimise the Hillside Project through:
> capital cost reductions by competitive re-tender of plant and equipment;
> an operating effectiveness review; and
further develop the exploration target portfolio, in what we now consider as a highly-prospective
Iron Ore Copper Gold (IOCG) land package.
OPERATING AND FINANCIAL REVIEW
The income statement shows a loss after tax of $5.2 million (2017: $0.8 million) for the year. The Group has no bank
debt. As at 30 June 2018, the Group had a cash position of $4.0 million (2017: $5.4 million). Operating activities
resulted in a net cash outflow for the year of $4.8 million (2017: $0.8 million).
SIGNIFICANT CHANGES IN THE STATE OF AFFAIRS
There were no significant changes in the state of affairs of the Group during the financial year.
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.
EVENTS SINCE THE END OF THE FINANCIAL YEAR
Following shareholder approval at the General Meeting on 20 July 2018, the Company announced on 25 July 2018 the
issue of ordinary shares for both Tranche 2 to the Capital Raising and the Share Purchase Plan (SPP). The Company
issued 21.4 million ordinary shares and received $2.4 million before costs for Tranche 2 and issued a further 9.3 million
ordinary shares for an additional $1 million for the SPP, before costs.
The Company also issued 1,975,983 ordinary shares as a result of the exercise of options on 22 August 2018.
Other than mentioned above, no matters or circumstances have arisen since 30 June 2018 that have significantly affected
the Group’s operations, results or state of affairs.
ANNUAL REPORT
2 0 1 8
10
REX MINERALS LTD
DIRECTORS’ REPORT (Continued) for the year ended 30 June 2018
LIKELY DEVELOPMENTS AND EXPECTED RESULTS OF OPERATIONS
The Group is working towards the development of the Hillside Project and continued minerals exploration on the
tenements owned or controlled by the Group.
Other than that which is disclosed throughout the Annual Report, 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.
ENVIRONMENTAL REGULATION
The Group’s operations are subject to environmental regulation in respect of mineral tenements relating to exploration
activities on those tenements. No breaches of any environmental requirements were recorded during the financial year.
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 Directors and Executive 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.
NON-AUDIT SERVICES
During the year, KPMG Australia (KPMG), the Group’s auditor, did not perform any services other than the audit and
review of the financial statements.
During 2017, the Board considered the non-audit services provided by the auditor and were satisfied that the provision of
those non-audit services was compatible with, and did not compromise, the auditor independence requirements of the
Corporations Act 2001. The non-audit services provided did not undermine the general principles relating to auditor
independence as set out in ‘APES 110 Code of Ethics for Professional Accountants’, as they did not involve reviewing or
auditing the auditor’s own work, acting in a management or decision-making capacity for the Group, acting as an advocate
for the Group or jointly sharing risks and rewards.
Details of amounts paid to the auditor of the Group, KPMG and its related practices for audit and non-audit services
during the year, are set out below.
2018 2017
$ $
Audit and review of financial statements 48,175 48,175
Other services – review of research and development claim – 30,000
11
REX MINERALS LTD
DIRECTORS’ REPORT (Continued) for the year ended 30 June 2018
REMUNERATION REPORT – AUDITED
The Directors present the Remuneration Report for the year ended 30 June 2018, outlining key aspects of the
remuneration policy and framework and the remuneration awarded during the year.
Principles of compensation
Remuneration is referred to as compensation throughout this report.
Key Management Personnel (KMP) comprise the Directors of the Company and Senior Executives for the Group. KMP
have authority and responsibility for planning, directing and controlling the activities of the Company and the Group.
Compensation packages may include a mix of fixed and variable compensation, and short-term and long-term
performance-based incentives.
Fixed compensation
Fixed compensation consists of base compensation (which is calculated on a total cost basis and includes any fringe
benefits tax charges related to employee benefits including motor vehicles), as well as leave entitlements and employer
contributions to superannuation funds.
Compensation levels are reviewed annually through a process that considers individual, segment and overall performance
of the Group. Market research provides analysis and guidance for compensation.
Performance linked compensation
Performance linked compensation may include both short-term and long-term incentives, and is designed to reward senior
executives for meeting or exceeding their financial and personal objectives. The short-term incentive is an ‘at risk’ bonus
provided in the form of cash, while the long-term incentive is provided as options over ordinary shares of the Company
pursuant to the terms and conditions of the options.
Short-term incentive
The short-term incentive (STI) is a discretionary bonus provided in the form of cash. At the end of the financial year,
the Board assesses the performance of the Group and individuals.
The Board determines and approves the cash incentive to be paid to individuals. During the year, no STI cash bonuses
were paid or payable.
Long-term incentive
The long-term incentive (LTI) is provided as options over ordinary shares of the Group. The Board believes the LTI is
an important component of a comprehensive remuneration strategy. It aligns participants’ interests with those of
shareholders by linking their overall total rewards to the long-term success of the Company and helps retain cash funds
within the Company.
The Board received shareholder approval for an Option Incentive Plan at the Annual General Meeting on 30 November
2015. The plan is administered by the Board which has the discretion to determine eligibility to participate in the plan.
Consequences of performance on shareholder wealth
The variable components of the Group’s Executives’ remuneration (the STI and LTI) seek to encourage alignment of
management performance and shareholders’ interests by linking remuneration to the performance of the Group.
Whilst the Remuneration Committee takes into consideration the indices detailed below, the Board acknowledges that
as an exploration and development company, the use of such indices does not fully reflect the Group’s performance.
Net loss attributable to equity holders of the
parent (million)
2018
$
5.2
2017
$
0.8
2016
$
5.1
2015
$
8.7
2014
$
17.0
Closing share price at financial year’s end ($)
0.105
0.056
0.051
0.105
0.305
ANNUAL REPORT
2 0 1 8
12
REX MINERALS LTD
DIRECTORS’ REPORT (Continued) for the year ended 30 June 2018
REMUNERATION REPORT – AUDITED (CONTINUED)
Service agreements
In line with Group policy, the Group has entered into contracts with each of its Executive Officers, and they are capable
of termination on up to two months’ notice. The Group retains the right to terminate a contract immediately by making
payment in lieu of notice. Executive Officers 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 provides for no additional entitlement on termination in the event of removal for misconduct or gross negligence.
The employment contract outlines the components of compensation paid to the Executive Officers, but does not prescribe
how compensation levels are modified year to year. Compensation levels are reviewed each year to meet the principles of
the compensation policy. There is currently no STI plan offered to Executive Officers. The Company has established an
Option Incentive Plan, and the Board may invite Executive Officers to participate under the terms and conditions of the
plan as an LTI.
Non-Executive Directors
Total compensation for all Non-Executive Directors, last voted upon by shareholders at the 2011 Annual General
Meeting, is not to exceed $500,000 per annum and is set based on advice from external advisors with reference to fees
paid to other Non-Executive Directors of comparable companies.
The Chairman and Non-Executive Directors do not receive performance related remuneration. Directors’ fees cover all
main Board activities and membership of Board committees.
13
REX MINERALS LTD
DIRECTORS’ REPORT (Continued) for the year ended 30 June 2018
REMUNERATION REPORT – AUDITED (CONTINUED)
Directors’ and Executive Officers’ remuneration
Details of the nature and amount of each major element of remuneration of Directors and Executive Officers for 2018
are as follows:
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ANNUAL REPORT
2 0 1 8
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r
REX MINERALS LTD
DIRECTORS’ REPORT (Continued) for the year ended 30 June 2018
REMUNERATION REPORT – AUDITED (CONTINUED)
Directors’ and Executive Officers’ remuneration
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r
REX MINERALS LTD
DIRECTORS’ REPORT (Continued) for the year ended 30 June 2018
REMUNERATION REPORT – AUDITED (CONTINUED)
Shares under option
All options refer to unquoted options over ordinary shares of Rex Minerals Ltd, which are exercisable on a one-for-one
basis under the terms and conditions of the Option Incentive Plan. The options do not entitle the holder to participate in
any share issue of the Company. All options expire on the earlier of their expiry date or in the case of termination, as
defined in the terms and conditions of the plan.
No options have been granted during or since the end of the financial year. During the financial year, the Company has not
issued any ordinary shares as a result of the exercise of options. At 30 June 2018, there were 16.8 million unquoted
options over ordinary shares of the Company. Since the end of the financial year, the Company has issued 1,975,983
ordinary shares as a result of the exercise of options. At the date of this report, there were 14,824,017 million unquoted
options over ordinary shares of the Company.
Reconciliation of options and ordinary shares held by Key Management Personnel (KMP)
Options
The table below shows a reconciliation of unquoted options over ordinary shares in the Company held directly, indirectly
or beneficially by each KMP including their related parties, during the financial year. No options have been granted,
lapsed, were forfeited or exercised during the year.
The fair value of the options is calculated at the date of grant, using the Black-Scholes option pricing model and allocated
to each reporting period evenly over the period from grant to vesting date.
Name
Held at
1 July
2017
Number
of
options
granted
Number
of
options
vested
% of
options
vested
Held at
30 June
2018
Fair
value of
options
granted
Fair
value
of options
expensed
in 2018
Maximum
fair value of
options yet to
vest or be
expensed
Dr David Carland
1,000,000
Mr Alister Maitland
1,000,000
Mr Mitchell Hooke 1
1,000,000
Mr Richard Laufmann
3,000,000
Mr Greg Hall 2
1,500,000
Ms Amber Rivamonte
1,500,000
–
–
–
–
–
–
666,666
666,666
666,666
2,000,000
1,000,000
1,000,000
66
66
66
66
66
66
1,000,000
1,000,000
1,000,000
3,000,000
1,500,000
1,500,000
–
–
–
–
–
–
$4,789
$1,336
$4,789
$1,336
$4,789
$1,336
$14,368
$4,008
$7,184
$2,004
$7,184
$2,004
1 Mr Hooke has exercised 666,000 unquoted options over ordinary shares since the end of the financial year.
2 Mr Hall has exercised 100,000 unquoted options over ordinary shares since the end of the financial year.
The table below shows a reconciliation of unquoted options over ordinary shares in the Company held directly, indirectly
or beneficially by each KMP including their related parties, during the 2017 financial year. No options vested, lapsed,
were forfeited or exercised during the 2017 financial year.
Name
Held at
1 July
2016
Number
of
options
granted
Number
of
options
vested
% of
options
vested
Held at
30 June
2017
Fair
value of
options
granted
Fair
value
of options
expensed
in 2017
Maximum
fair value of
options yet to
vest or be
expensed
Dr David Carland
1,000,000
Mr Alister Maitland
1,000,000
Mr Mitchell Hooke
1,000,000
Mr Richard Laufmann
3,000,000
Mr Greg Hall
1,500,000
Ms Amber Rivamonte
1,500,000
–
–
–
–
–
–
333,333
333,333
333,333
1,000,000
500,000
500,000
33
33
33
33
33
33
1,000,000
1,000,000
1,000,000
3,000,000
1,500,000
1,500,000
–
–
–
–
–
–
$10,964
$6,125
$10,964
$6,125
$10,964
$6,125
$32,893
$18,376
$16,447
$9,188
$16,447
$9,188
ANNUAL REPORT
2 0 1 8
16
REX MINERALS LTD
DIRECTORS’ REPORT (Continued) for the year ended 30 June 2018
REMUNERATION REPORT – AUDITED (CONTINUED)
Reconciliation of options and ordinary shares held by Key Management Personnel (KMP) (Continued)
Details of the nine million options held by KMP at the end of the financial year are as follows.
Grant date
22 December 2015
Fair value per option at grant date
2.51 cents
Exercise price per option
6.3 cents
Premium to closing share price prior to grant date
12.5%
Expiry date
30 November 2019
Options vest in three equal tranches as follows:
(cid:129) Tranche 1 – one third vest on 30 November 2016, during the financial year ending 30 June 2017;
(cid:129) Tranche 2 – one third vest on 30 November 2017, during the financial year ending 30 June 2018;
(cid:129) Tranche 3 – one third vest on 30 November 2018, during the financial year ending 30 June 2019.
All options expire on the earlier of their expiry date or in the case of termination as defined in the Option Incentive Plan.
On termination, in the event that a KMP is deemed to be a good leaver, then all unvested options will immediately vest.
In the event that a KMP is deemed to be a bad leaver, the options (whether vested or unvested) expire shortly thereafter.
Shareholdings
The table below shows a reconciliation of ordinary shares in the Company held, directly, indirectly or beneficially by
each KMP including their related parties, during the financial year. The table below also includes any movement in
ordinary shares since the end the financial year and the totals held at the date of this report by each KMP including
their related parties.
Name
Held at
30 June
2017
Received
on
exercise
of option
Purchased
or sold
during the
year
Held at
30 June
2018
Received
on
exercise
of option
Purchased
or sold
since the
end of
year
Held at
date of
this report
Dr David Carland
Mr Alister Maitland
Mr Mitchell Hooke
268,330
202,000
105,143
Mr Richard Laufmann
3,541,666
Mr Greg Hall
–
Ms Amber Rivamonte
850,000
–
–
–
–
–
–
618,194
886,524
–
202,000
–
–
136,364
1,022,888
136,364
338,364
200,000
305,143
666,000
136,364
1,107,507
–
–
–
3,541,666
–
909,000
4,450,666
–
100,000
–
100,000
850,000
–
100,000
950,000
Other transactions with Key Management Personnel (KMP)
KMP hold positions in other companies that result in them having control or significant influence over those companies.
During the year, KMP related companies transacted with the Group. The terms and conditions of these transactions were
no more favourable than those available, or which might reasonably be expected to be available, on similar transactions to
non-KMP related companies on an arm’s length basis.
17
REX MINERALS LTD
DIRECTORS’ REPORT (Continued) for the year ended 30 June 2018
Rounding
The Group is of a kind referred to in ASIC Corporations (Rounding in Financial/Directors’ Reports) Instrument 2016/191
dated 24 March 2016 and in accordance with that Financial Instrument, amounts in the consolidated financial statements
and Directors’ Report have been rounded off to the nearest thousand dollars, unless otherwise stated. All currencies are in
Australian dollars unless stated otherwise.
Lead Auditor’s Independence Declaration
The lead auditor’s independence declaration is set out on page 41 and forms part of the Directors’ Report for the year
ended 30 June 2018.
Dated at Melbourne this 13th day of September 2018.
Signed in accordance with a resolution of the Directors:
Mr Richard Laufmann
Chief Executive Officer
ANNUAL REPORT
2 0 1 8
18
REX MINERALS LTD
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As at 30 June
2018 2017
Note $000 $000
Current assets
Cash and cash equivalents 7 3,984 5,440
Trade and other receivables 247 280
Prepayments 35 51
Total current assets 4,266 5,771
Non-current assets
Exploration and evaluation expenditure 1,645 1,645
Property, plant and equipment 9 14,930 15,085
Water infrastructure 4,076 4,076
Total non-current assets 20,651 20,806
Total assets 24,917 26,577
Current liabilities
Trade and other payables 10 314 259
Employee benefits 11 512 298
Provisions 36 36
Total current liabilities 862 593
Non-current liabilities
Trade and other payables 10 348 424
Employee benefits 11 29 149
Total non-current liabilities 377 573
Total liabilities 1,239 1,166
Net assets 23,678 25,411
Equity
Issued capital 12(a) 192,910 189,566
Reserves 12(c) 399 319
Accumulated losses (169,631) (164,474)
Total equity 23,678 25,411
The notes on pages 23 to 39 are an integral part of these financial statements.
19
REX MINERALS LTD
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND
OTHER COMPREHENSIVE INCOME
For the year ended 30 June
2018 2017
Note $000 $000
Finance income 60 227
Administrative expenses (1,248) (828)
Depreciation expense 9 (163) (234)
Employee benefits expense 13 (2,178) (2,261)
Marketing expenses (76) (61)
Exploration and evaluation (1,551) (948)
Loss on disposal of fixed assets (1) –
Loss before tax (5,157) (4,105)
Income tax benefit 14 – 3,313
Total loss for the period after tax (5,157) (792)
Other comprehensive income – –
Total comprehensive loss attributable to members of Rex Minerals Ltd (5,157) (792)
Loss per share attributable to members of Rex Minerals Ltd
Basic loss per share (cents) 15 (2.33) (0.36)
Diluted loss per share (cents) 15 (2.33) (0.36)
The notes on pages 23 to 39 are an integral part of these financial statements.
ANNUAL REPORT
2 0 1 8
20
REX MINERALS LTD
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the year ended 30 June
Attributable to equity holders of the Group
Share Share based Accumulated Total
capital payments losses equity
reserve
Note $000 $000 $000 $000
Balance at 1 July 2017 189,566 319 (164,474) 25,411
Issue of ordinary shares 12(a) 3,639 – – 3,639
Transaction costs of share issue (295) – – (295)
Share based payments 12(c) – 80 – 80
Total comprehensive loss for the period – – (5,157) (5,157)
Balance at 30 June 2018 192,910 399 (169,631) 23,678
Balance at 1 July 2016 189,566 135 (163,682) 26,019
Share based payments 12(c) – 184 – 184
Total comprehensive loss for the period – – (792) (792)
Balance at 30 June 2017 189,566 319 (164,474) 25,411
The notes on pages 23 to 39 are an integral part of these financial statements.
21
REX MINERALS LTD
CONSOLIDATED STATEMENT OF CASH FLOWS
For the year ended 30 June
2018 2017
Note $000 $000
Cash flows from operating activities
Cash paid to suppliers and employees (3,313) (3,393)
Exploration and evaluation payments (1,562) (904)
Interest received 68 222
Research and development incentive received – 3,313
Net cash used in operating activities 16 (4,807) (762)
Cash flows from investing activities
Acquisition of property, plant and equipment 9 (9) (3)
Proceeds from term deposits – 3,000
Net cash from/(used in) investing activities (9) 2,997
Cash flows from financing activities
Proceeds from issue of share capital 12 3,639 –
Payment of transaction costs (279) –
Net cash from financing activities 16 3,360 –
Net increase/(decrease) in cash and cash equivalents (1,456) 2,235
Cash and cash equivalents at beginning of the period 5,440 3,205
Cash and cash equivalents at period end 7 3,984 5,440
The notes on pages 23 to 39 are an integral part of these financial statements.
ANNUAL REPORT
2 0 1 8
22
REX MINERALS LTD
NOTES TO THE FINANCIAL STATEMENTS
1. REPORTING ENTITY
Rex Minerals Ltd (the “Company”) is a company domiciled in Australia. The address of the Company’s registered
office is Level 19, 11 Waymouth Street, Adelaide, South Australia 5000. The Group financial statements as at and
for the year ended 30 June 2018 comprise the Company and its subsidiaries (together referred to as the “Group”
and individually as “Group entities”). The Group is a for profit entity primarily involved in minerals exploration and
evaluation in Australia.
2. BASIS OF PREPARATION
(a) Statement of compliance
The consolidated financial statements are general purpose financial statements which have been prepared in
accordance with Australian Accounting Standards (AASBs) adopted by the Australian Accounting Standards
Board (AASB) and the Corporations Act 2001. The consolidated financial statements comply with International
Financial Reporting Standards (IFRS) adopted by the International Accounting Standards Board (IASB).
They were approved by the Board of Directors on 13 September 2018.
(b) Basis of measurement
The Group financial statements have been prepared on the historical cost basis.
The Group financial statements have been prepared on a going concern basis which contemplates the continuity
of normal business activity and realisation of assets and the settlement of liabilities in the normal course of business.
(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.
The Company is of a kind referred to in ASIC Corporations (Rounding in Financial/Directors’ Reports) Instrument
2016/191and in accordance with that Rounding Instrument, all financial information is presented in Australian
dollars and has been rounded to the nearest thousand, unless otherwise stated.
(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 and their related accounting policies:
(cid:129)
(cid:129)
(cid:129)
Note 9
Note 17
Note 21
Recoverable value of non-current assets
Share based payments
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. The Group has adopted all of the new
and revised Standards and Interpretations issued by the Australian Accounting Standards Board that are relevant
to the Group and effective for the current annual reporting period.
The adoption of these new and revised Australian Accounting Standards has had no significant impact on the
Group’s accounting policies.
(a)
Basis of consolidation
(i) Subsidiaries
Subsidiaries are entities controlled by the Group. The Group controls an entity when it is exposed to, or has
rights to, variable returns from its involvement with the entity and has the ability to affect those returns
through its power over the entity. 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.
23
REX MINERALS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
3.
SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(a)
Basis of consolidation (Continued)
(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.
(b) Financial instruments
(i)
Non-derivative financial instruments
Non-derivative financial instruments comprise investments in equity securities, 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,
ie. 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.
(A) Receivables – other debtors
Other debtors are measured at amortised cost using the effective interest method, less impairment
losses. Other debtors are reviewed on an ongoing basis for any indicators of impairment.
An impairment loss is recognised for debts which are known to be uncollectable. An impairment
allowance is raised for any doubtful accounts.
(B) Cash and cash equivalents
Cash and cash equivalents comprise cash balances and call deposits with an original maturity of
three months or less.
(C) Term deposits
Term deposits comprise cash balances and call deposits with an original maturity of more than
three months.
(D) 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.
ANNUAL REPORT
2 0 1 8
24
REX MINERALS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
3.
SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(c)
Property, plant and equipment
(i) Recognition and measurement
Items of property, plant and equipment (PP&E) 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 PP&E 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 PP&E are recognised in profit or loss as incurred.
(iii) Depreciation
Depreciation is recognised in the profit or loss for items of PP&E on a straight-line basis over the estimated
useful lives of each part of an item of PP&E.
The estimated useful lives for the current and comparative periods are as follows:
(cid:129)
(cid:129)
Plant and equipment
3 – 10 years
Buildings
10 – 20 years
Land is not depreciated.
Water infrastructure will be depreciated over the life of the Hillside Project, upon commencement
of production.
Depreciation methods, useful lives and residual values are reviewed at each reporting date and
adjusted if appropriate.
(d)
Exploration and evaluation expenditure
Exploration and evaluation expenditure, excluding the costs of acquisition, is expensed within the profit and
loss as incurred.
Costs incurred in acquiring rights, the entry premiums paid to gain access to areas of interest and amounts payable
to third parties to acquire interests in existing projects are capitalised as incurred and assessed for impairment
triggers annually.
(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.
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.
25
REX MINERALS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
3.
SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(e)
Impairment (Continued)
(ii) Non-financial assets
The carrying amounts of the Group’s non-financial 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.
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 generate cash inflows from continuing use that are largely independent
of the cash inflows of other assets or groups of assets (the “cash-generating unit”). 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
12 months of the reporting date represent obligations resulting from employee services provided to the
reporting date, and 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) Long-term benefits
The Group’s obligation in respect of long service leave is measured as the present value of the future benefit
expected to be paid to employees that has been earned in return for their service in the current and prior
periods. Consideration is given to the expected future wage and salary levels, experience of employee departures
and periods of service. Expected future payments are discounted using Australian corporate bond rates.
(iii) Share based payments
Equity-based compensation is recognised as an expense in respect of the services received.
The fair value of options granted is recognised as an expense with a corresponding increase in equity.
The fair value is measured at grant date and recognised over the period during which the participants
become 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-tradeable 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 statement of profit or loss 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 goods and services tax
(GST). Exchanges of goods or services of the same nature and value without any cash consideration are not
recognised as revenue.
ANNUAL REPORT
2 0 1 8
26
REX MINERALS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
3.
SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(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. 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.
Research and development benefits are recognised in the year the benefit is received.
(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. The tax consolidated group has entered into tax funding and
tax sharing agreements.
(iii) Goods and services tax
Revenue, expenses and assets are recognised net of the amount of 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 Australian Taxation Office (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/loss per share
The Group presents basic and diluted earnings per share data for its ordinary shares. Basic earnings per share 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 earnings per share 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.
27
REX MINERALS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
3.
SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(k)
Segment reporting
The Group determines and presents operating segments based on the information that internally is provided to the
CEO, 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 CEO to make decisions about resources to be
allocated to the segment and to assess its performance.
Segment expenditure that is reported to the CEO includes items directly attributable to a segment as well as those
that can be allocated on a reasonable basis.
Segment capital expenditure is the total cost incurred during the period to acquire PP&E.
(l) Restoration and rehabilitation provision
Obligations to restore and rehabilitate certain areas of property may arise from time to time as a result of the
Group’s activities. A provision for rehabilitation and restoration is recognised in respect of the estimated cost of
rehabilitation, decommissioning and restoration of areas of disturbance existing at reporting date, but not yet
rehabilitated. Rehabilitation activities include dismantling infrastructure, removal and treatment of waste
material, and land rehabilitation, including recontouring, top-soiling and revegetation of the disturbed area.
Provisions for the cost of the rehabilitation program are recognised at the time that environmental disturbance
occurs (or is acquired).
A corresponding asset is recognised in PP&E or exploration and evaluation assets only to the extent that it is
probable that future economic benefits associated with the rehabilitation, will flow to the entity. Determining the
cost of rehabilitation and restoration of the area of disturbance requires the use of significant estimates and
assumptions, including: the timing of the cash flows and expected life of the relevant area of interest, the
application of relevant environmental legislation, and the future expected costs of rehabilitation, decommissioning
and restoration. Changes in the estimates and assumptions used to determine the cost of rehabilitation,
decommissioning and restoration could have a material impact on the carrying value of the site restoration
provision and related asset. The provision is updated based on the facts and circumstances at the reporting date.
(m) New standards and interpretations not yet adopted
A number of new standards, amendments to standards and interpretations are effective for annual periods
beginning after 1 July 2018, and have not been applied in preparing these consolidated financial statements:
(cid:129)
(cid:129)
(cid:129)
AASB 9 Financial Instruments will be effective for the Group’s 2019 financial statements. The new
standard addresses the classification, measurement and derecognition of financial assets and financial
liabilities and sets out new rules for hedge accounting. It is likely to affect the Group's classification of its
financial assets and financial liabilities. The new standard is not expected to have significant impact on the
financial statements.
AASB 15 Revenue from Contracts with Customers will be effective for the Group’s 2019 financial
statements. The new standard is not expected to have significant impact on the financial statements.
AASB 16 Leases removes the classification of leases as either operating or finances leases for the lessee,
effectively treating all leases on balance sheet. Short-term leases and leases of low value assets are exempt
from the lease accounting requirements. These amendments will be effective for the Group’s 2020 financial
statements with early adoption permitted. The Group has not yet decided when to adopt AASB 16 and has
not yet determined the potential effect of the standard.
ANNUAL REPORT
2 0 1 8
28
REX MINERALS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
4. DETERMINATION OF FAIR VALUES
A number of the Group’s accounting policies and disclosures require the determination of fair values 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.
(a)
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.
(b) 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.
(c)
Share based payments
The fair value of options granted to participants as compensation is independently measured using a Black-
Scholes option pricing model. Measurement inputs include the exercise price of the options, the term of the
options, the vesting and performance criteria, the non-tradeable nature of the option, the share price at grant
date and expected price volatility of the underlying share (based on an evaluation of the Company’s
historical volatility), expected term of the instruments (based on historical experience and general option
holder behaviour), the expected dividend yield and the risk-free interest rate (based on government bonds)
for the term of the option.
5. FINANCIAL RISK MANAGEMENT
(a)
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 an adequate capital base sufficient to maintain future exploration and progress
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 and contractors to be shareholders through the Option Incentive 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.
(b)
Credit risk
Credit risk is the risk of financial loss to the Group if a customer or counter-party to a financial
instrument fails to meet its contractual obligations, and arises principally from the Group’s receivables
and cash balances.
(c)
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. To this end, actual cash flows and forecast
future cash flows are reported to and monitored by the Board on a periodic basis.
(d) Market risk
Market risk is the risk that changes in market prices (such as foreign exchange rates), interest rates and
equity prices that 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.
29
REX MINERALS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
6. SEGMENT REPORTING
The consolidated entity operates in one geographical segment, being South Australia and one industry,
minerals mining and exploration.
7. CASH AND CASH EQUIVALENTS
2018 2017
$000 $000
Bank balances and short-term deposits 3,984 5,440
Cash and cash equivalents 3,984 5,440
The Group’s total cash and funds on deposit of $3.984 million (2017: $5.440 million) is exposed to interest rate
risk and a sensitivity analysis for financial assets and liabilities is disclosed in note 18.
8. DEFERRED TAX ASSETS (DTA) AND DEFERRED TAX LIABILITIES (DTL)
2018 2017
$000 $000
Exploration and evaluation assets (494) (494)
Property, plant and equipment (101) (121)
Provisions 161 114
Equity costs 71 43
Net DTA/(DTL) (363) (458)
Tax losses recognised to the extent of the DTL 363 458
– –
Tax losses do not expire under current tax legislation. A DTA has not been recognised in respect of these items
because it is not probable within the immediate future, that taxable profits will be available, against which the
Company can utilise the benefits. The DTA not recognised is $53.144 million (2017: $50.142 million).
ANNUAL REPORT
2 0 1 8
30
REX MINERALS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
9. PROPERTY, PLANT AND EQUIPMENT
Land and Plant and
buildings equipment Total
2018 $000 $000 $000
Cost
Balance at 1 July 2017 15,074 2,121 17,195
Additions – 9 9
Disposals – (3) (3)
Balance at 30 June 2018 15,074 2,127 17,201
Depreciation and impairment losses
Balance at 1 July 2017 317 1,793 2,110
Depreciation 87 76 163
Disposals – (2) (2)
Balance at 30 June 2018 404 1,867 2,271
Carrying amounts
At 1 July 2017 14,757 328 15,085
At 30 June 2018 14,670 260 14,930
Land and Plant and
buildings equipment Total
2017 $000 $000 $000
Cost
Balance at 1 July 2016 15,074 2,118 17,192
Additions – 3 3
Balance at 30 June 2017 15,074 2,121 17,195
Depreciation and impairment losses
Balance at 1 July 2016 230 1,646 1,876
Depreciation 87 147 234
Balance at 30 June 2017 317 1,793 2,110
Carrying amounts
At 1 July 2016 14,844 472 15,316
At 30 June 2017 14,757 328 15,085
10. TRADE AND OTHER PAYABLES
2018 2017
$000 $000
Current
Trade payables 15 13
Accrued expenses 299 246
Total current trade and other payables 314 259
Non-current
Accrued expenses – lease incentive 348 424
Total non-current trade and other payables 348 424
Total trade and other payables 662 683
31
REX MINERALS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
11. EMPLOYEE BENEFITS PROVISIONS
2018 2017
$000 $000
Current
Annual leave 369 298
Long service leave 143 –
Total current employee benefits provisions 512 298
Non-current
Long service leave 29 149
Total non-current employee benefits provisions 29 149
Total employee benefits provisions 541 447
12. EQUITY
(a) Movements in shares on issue:
Date of Number of Issue
issue shares price $000
Opening balance at 1 July 2017 220,519,784 189,566
Capital raising – Placement 18/06/2018 33,077,900 0.11 3,639
Less costs of placement (295)
Closing balance at 30 June 2018 253,597,684 192,910
Opening balance at 1 July 2016 220,519,784 189,566
Closing balance at 30 June 2017 220,519,784 189,566
(b) Movements in options on issue:
Number of
options
Opening balance as at 1 July 2017 16,800,000
Closing balance as at 30 June 2018 16,800,000
Opening balance as at 1 July 2016 16,800,000
Closing balance as at 30 June 2017 16,800,000
(c) Movements in share based payment reserve:
$000
Opening balance at 1 July 2017 319
Share based payments 80
Closing balance at 30 June 2018 399
Opening balance at 1 July 2016 135
Share based payments 184
Closing balance at 30 June 2017 319
This share based payment reserve is used to recognise the fair value of options issued to participants for options
granted which have not been exercised.
ANNUAL REPORT
2 0 1 8
32
REX MINERALS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
13. EMPLOYEE BENEFITS EXPENSE
2018 2017
$000 $000
Wages and salaries 2,027 1,961
Share based payments 56 129
Increase/(decrease) in liability for annual leave 71 127
Increase/(decrease) in liability for long service leave 24 44
Total employee benefits expense 2,178 2,261
14. INCOME TAX BENEFIT
NUMERICAL RECONCILIATION BETWEEN TAX BENEFIT AND PRE-TAX ACCOUNTING LOSS
2018 2017
$000 $000
Loss before tax for the period (5,157) (4,105)
Income tax benefit using the corporation tax rate of 30% (2017: 30%) (1,547) (1,231)
Non-deductible expenses 26 37
Research and development benefit – (3,313)
Other non-temporary differences (89) –
Net effect of tax losses not recognised 1,610 1,194
Total income tax expense/(benefit) on pre-tax net loss – (3,313)
15. LOSS PER SHARE
2018 2017
cents cents
Loss per share
Basic loss per share (2.33) (0.36)
Diluted loss per share (2.33) (0.36)
(a) Basic loss per share
The calculation of basic loss per share at 30 June 2018 was based on the loss attributable to ordinary
equity holders of $5.157 million (2017: $0.792 million) and a weighted average number of ordinary shares
outstanding during the financial year ended 30 June 2018 of 221,610,264 (2017: 220,519,784).
(b) Diluted loss per share
The calculation of diluted loss per share at 30 June 2018 is the same as basic loss per share.
In accordance with AASB 133 Earning per share, as potential ordinary shares may result in a situation
where their conversion results in a decrease in the loss per share, no dilutive effect has been taken into account.
Potential ordinary shares relating to the Option Incentive Plan totalled 16,800,000 at 30 June 2018.
33
REX MINERALS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
16. RECONCILIATION OF CASH FLOWS FROM OPERATING AND FINANCING ACTIVITIES
2018 2017
Note $000 $000
Cash flows from operating activities
Loss before tax for the period (5,157) (4,105)
Adjustments for non-cash items:
Depreciation 9 163 234
Share based payments 12(c) 80 184
Adjustments for other items:
(Profit)/loss on disposal of property plant and equipment 1 –
Research and development benefit received – 3,313
Operating loss before changes in working capital and provisions (4,913) (374)
(Increase)/decrease in trade and other receivables 49 14
(Decrease)/increase in trade and other payables (37) (573)
(Decrease)/increase in employee benefits 94 171
Net cash used in operating activities (4,807) (762)
Cash flows from financing activities
Issue of share capital
Proceeds from share issue 12(a) 3,639 –
Transactions costs of share issue (295) –
Share capital before changes in working capital 3,344 –
(Decrease)/increase in trade and other payables 16 –
Net cash used in financing activities 3,360 –
17. SHARE BASED PAYMENTS
(a) Description of share based payment arrangements
No options were granted during the financial year ending 30 June 2018.
(b)
Option expense
2018 2017
$000 $000
Option expense 80 184
Total recognised as share based payments 80 184
(c)
Outstanding options
At 30 June 2018, there were 16,800,000 unlisted options outstanding, at an exercise price of 6.3 cents.
ANNUAL REPORT
2 0 1 8
34
REX MINERALS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
18. FINANCIAL INSTRUMENTS
Exposure to credit risk and interest rate risks arise in the normal course of the Group’s business.
(a)
Credit risk
Management monitors the exposure to credit risk on an ongoing basis through monitoring the Group’s
counterparties. 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 their net fair values.
(c)
Liquidity risk
The following are the contractual maturities of financial liabilities.
Carrying Contractual 1 year 1-2
Financial liabilities amount cash flows or less years
Group $000 $000 $000 $000
2018
Trade and other payables 662 (314) (314) (348)
662 (314) (314) (348)
2017
Trade and other payables 683 (259) (259) (424)
683 (259) (259) (424)
35
REX MINERALS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
18. FINANCIAL INSTRUMENTS (CONTINUED)
(d)
Interest rate risk
The Group’s exposure to market interest rates relates primarily to the Group’s short-term deposits.
At balance date, the Group had the following financial assets exposed to interest rate risk:
2018 2017
$000 $000
Cash and cash equivalents 3,984 5,440
Total cash and cash equivalents 3,984 5,440
At balance date, the Group has no financial liabilities exposed to variable interest rate risks. The following
sensitivity analysis is based on the interest rate risk exposure in existence at the balance sheet date.
At 30 June 2018, 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)
2018 2017 2018 2017
$000 $000 $000 $000
Group
+1% (100 basis points) 40 54 – –
– 1% (100 basis points) (40) (54) – –
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 Consolidated statement of profit
or loss and other comprehensive income.
(e)
Impairment losses
None of the Group’s receivables are past due (2017: nil).
19. OPERATING LEASES
At the end of the reporting period, the future minimum lease payments under non-cancellable operating leases are
payable as follows:
2018 2017
$000 $000
Not later than one year 415 407
Later than one year but not later than five years 1,749 1,660
Greater than five years 268 657
The Group leases office space under an operating lease. The lease was for a period of 10 years (5.5 years remain),
with an option to renew the lease after that date. Lease payments increase by a fixed percentage every year and
are adjusted to the prevailing market rate after five years.
During the year, an amount of $0.432 million was recognised as an expense in profit and loss in respect of the
office lease (2017: $0.430 million).
ANNUAL REPORT
2 0 1 8
36
REX MINERALS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
20. EXPLORATION EXPENDITURE COMMITMENTS
In order to maintain current rights of tenure to exploration tenements, the Group is required to perform minimum
exploration work to meet the minimum expenditure requirements under the various exploration licences which are
held. 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 State Government has the authority to defer, waive or
amend the minimum expenditure requirements.
2018 2017
$000 $000
Not later than one year 1,956 1,852
Later than one year but not later than five years 1,681 620
21. 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.
The Group’s bankers have provided guarantees amounting to $0.020 million to certain government bodies as
security over the Group’s performance of rehabilitation obligations on certain tenements. Under the agreement, the
Group has indemnified the bank in relation to these guarantees. The guarantees are backed by deposits amounting
to $0.020 million as at 30 June 2018 (2017: $0.020 million).
The Group’s bankers have provided guarantees amounting to $0.199 million regarding office leases as security
over the Group’s obligations regarding the leases held. Under the agreements, the Group has indemnified the bank
in relation to these guarantees. The guarantees are backed by deposits amounting to $0.199 million as at 30 June
2018 (2017: $0.228 million).
22. RELATED PARTIES
(a) Parent and ultimate controlling party
Ownership Interest
Country of
Incorporation 2018 2017
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%
37
REX MINERALS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
22. RELATED PARTIES (CONTINUED)
(b)
Transactions with Key Management Personnel (KMP)
(i)
Loans to Directors
There were no loans advanced to Directors for the year ending 30 June 2018.
(ii) KMP compensation
KMP compensation comprised the following:
2018 2017
$ $
Short-term benefits 1,027,959 1,031,390
Post-employment benefits 62,462 68,400
Share based payments 43,103 98,679
Other long-term benefits (130) 4,772
1,133,394 1,203,241
Information regarding individual Directors’ and Executive Officers’ compensation and some equity
instrument disclosures as permitted by Corporations Regulations 2M.3.03 are provided in the
Remuneration Report section of the Directors’ Report on pages 12 to 17.
There have been no changes to KMP between 1 July 2018 and the date of this report.
(iii) Other KMP transactions
A number of KMP hold positions in other companies that result in them having control or significant
influence over those companies.
During the year, KMP related companies transacted with the Group. The terms and conditions of these
transactions were no more favourable than those available, or which might reasonably be expected to
be available, on similar transactions to non-KMP related companies on an arm’s length basis.
Information regarding individual Directors’ and Executive Officers’ compensation are provided in the
Remuneration Report section of the Directors’ Report on pages 12 to 17.
The aggregate value of transactions and outstanding balances related to KMP companies were
as follows:
Transaction values Balance payable
year ended 30 June as at 30 June
2018 2017 2018 2017
Transaction $ $ $ $
Geological Services 1 140,000 120,000 10,000 –
1 During the year, geological consulting services were independently provided by a company jointly
controlled by the Chief Financial Officer. The contract terms are based on normal market rates for
this type of service and amounts are payable under normal market terms.
ANNUAL REPORT
2 0 1 8
38
REX MINERALS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
23. PARENT ENTITY DISCLOSURES
As at, and throughout, the period ending 30 June 2018, the parent company of the Group was Rex Minerals Ltd.
2018 2017
$000 $000
Result of the parent entity
Loss for the period (5,082) (637)
Other comprehensive income – –
Total comprehensive loss for the period (5,082) (637)
Financial position of the parent entity at year end
Current assets 4,266 5,772
Total assets 18,854 20,444
Current liabilities 651 530
Total liabilities 1,171 1,103
Total equity of the parent entity comprising of
Share capital 192,910 189,566
Share based payments reserve 399 319
Accumulated losses (175,626) (170,544)
Total equity 17,683 19,341
Parent entity contingencies
The Parent entity’s contingencies are the same as the Group’s contingencies as detailed in Note 21.
24. SUBSEQUENT EVENTS
Following shareholder approval at the General Meeting on 20 July 2018, the Company announced on 25 July
2018 the issue of ordinary shares for both Tranche 2 to the Capital Raising and the Share Purchase Plan (SPP).
The Company issued 21.4 million ordinary shares and received $2.361 million before costs for Tranche 2 and
issued a further 9.3 million ordinary shares for an additional $1.011 million for the SPP, before costs.
The Company also issued 1,975,983 ordinary shares as a result of the exercise of options on 22 August 2018.
Other than mentioned above, there has not arisen in the interval between the end of the financial year and the date
of this report any item, transaction or event of a material 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.
25. AUDITORS’ REMUNERATION
2018 2017
KPMG Australia $ $
Audit services 48,175 48,175
Other services – 30,000
No non-audit services were provided in the current year. During the prior year, KPMG, the Company’s auditor,
provided non-audit services to the Group in the form of specialist R&D Tax Incentive services in relation to the
Group’s research and development claims.
39
REX MINERALS LTD
DIRECTORS’ DECLARATION
1.
In the opinion of the Directors of Rex Minerals Ltd (the Company):
(a)
the consolidated financial statements and notes and the Remuneration Report in the Directors’ Report, set
out on pages 12 to 17, 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 2018 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.
(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.
3.
The Directors have been given the declarations required by section 295A of the Corporations Act 2001from the
Chief Executive Officer and Chief Financial Officer for the financial year ended 30 June 2018.
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:
Mr Richard Laufmann
Chief Executive Officer
Dated this 13th day of September 2018.
ANNUAL REPORT
2 0 1 8
40
Lead Auditor’s Independence Declaration
n under
Section 307C of the Corporations Act 20
01
To the Directors of Rex Minerals Limited
I declare that, to the best of my knowledge and belief, in relation to t
the financial year ended 30 June 2018 there have been:
he audit of Rex Minerals Limited for
i.
no contraventions of the auditor independence requirements as s
in relation to the audit; and
set out in the C rp raations Act 2001
por
or
t
ii.
no contraventions of any applicable code of professional conduct
in relation to the audit.
KPMG
Paul Cenko
Partner
Adelaide
13 September 2018
KPMG, an Australian
wnet oork of independe
International Cooper
n partnership and a member firm of the KPMG
ent member firms affiliated with KPMG
ative (“KPMG International”), a Swiss entity.
Liability limited by a scheme approved under
Professional Standards Legislation.
Independent Auditor’s Report
To the shareholders of Rex Minerals Limited
R
otidu aeh tn otrope
RlaicannFiehf t
troep
O
oninpi
We have audited the innancial Report of
Rex Minerals Limited (the Company).
Fi
al
i
The Financial Report com
prises:
(cid:1) Consolidated stateme
ent
t
of
f fiinanciaal position as at 30 June
f
i
l
In our opinion,
Financial Report of
accordance with the
2001, including:
the
accompanying
the Company is in
orC rp raations Act
por
(cid:1) giving a true and fair view of
the
rooup'ss financial position as at 30
'
Gr
June 2018
financial
and of
performance for the year ended on
that date; and
its
2018;
(cid:1) Consolidated statem
comprehensive incom
in equity,, and Consol
y
year then ended;
entm t of pr fiit
or
loss and other
r
f
tof
me, Consolidated staatem t of changes
t
f
lidated statement f cas fllows for the
t
of
s
ent
h f
(cid:1) Notes
including a
summary of significant accounting
policies; and
(cid:1) Directors' De laraation
n.
arcl
(cid:1)
complying with Austraaliaan Accounting
Staandardds
the Corp raations
ardt
r
por
R
egul
and
laations 2001.
r
i
r
The Grooup consists of th
and the entities it controll
during the financial year.
he Rex Minerals Limited (the Company)
ed at the year-end or from time to time
B
orfsisa
opi
onni
We conducted our audit in accordance with Austraaliaan Auditing Staanda
We conducted our audit in accordance with Austraaliaan Auditing Staanda
we have obtained is sufficient and appropriate to provide a basis for ou
rardds. We believe that the audit evidence
ur opinion.
r
r
t
t
i
i
Our responsibilities under those standards are further described in th
of the Financiaal Report section of our report.
i
he A diitor’s responsibilities for the audit
ud
or
f
s Act 2001 and the ethical requirements
We are independent of the Group in accordance with the C rp raations
of the Accounting Profeessional and Ethical Staandardds Boardd’s APE
S
f Ethics for Pr feessional
S 110 C
Accountants (the Code) that are relevant to our audit of the Financial R
Report in Australia. We have fulfilled our
other ethical responsibilities in accordance with the Code.
ode of
or
r
por
of
or
f
f
r
t
l
l
K
sertatMtiduAey
The Keey Audiitt M ttter we identifiied waas:
wf
at
id
K
(cid:1)
Recoverable value of non-current assets.
at
KKeey Audiitt M ttter
tid
professional judgem
audit of the Financial
rrss are those matters that,
in our
ment, were of most significance in our
l Report of the current period.
This matter was add
the Financial Report
thereon, and we do
matter.
dressed in the context of our audit of
as a whole, and in forming our opinion
not provide a separate opinion on this
KPMG, an Australian partnership and a member firm of the KPMG
wnet oork of independent member firms affiliated with KPMG
International Cooperative (“KPMG International”), a Swiss entity.
Liability limited by a scheme approved under
Professional Standards Legislation.
veroecR
lab
e
etsastenrruc-nonfoeuval
st
Property, plant and equipment $14.930m
– Note 9
Water infrastructure $4.076m
Exploration and evaluation expenditure $1
1.645m
Collectively referred to as ‘non-current as
sets’.
The key audit matter
How the matter was addressed in our audit
The Group's recoverable value of no
on-
current assets is based on either
th
current assets is based on either the
he
successful development of the Hillside
de
project or sale of the non-current asset
ts.
recoverable value of non-curre
The
nt
assets is a key audit matter due to:
• Significance of the balances to the
financial statements (being 83% of
total assets); and
• The
need
for management
t
to
determine the appropriate basis o
of
assessing recoverable value which can
an
be either:
judgement
- A 'value in use' assessment which
h
requires significant
in
n
determining the recoverable value of
f
the Hillside project due to the use of
of
a feasibility model which is highly
y
sensitive to changes in assumptions
s;
or
- A 'fair value' assessment which is
s
based on data sourced from third
parties in relation to comparable
transactions which are limited in
number and frequency.
For the year ended 30 June 2018, a fair
value basis has been adopted to determine
the recoverable value of the non-current
assets.
Our procedures included:
• Assessing the appropriateness of the methodology used to
determine the value of assets with reference to Australian
Accounting standards.
• Checking the Group's assessment of the fair value of
property, plant and equipment to data sourced by the
Group from an external valuer.
• Checking the Group's assessment of fair value of the
undeveloped ore resources to data sourced externally by
the Group.
• Assessing the scope, competence and objectivity of the
Group's external valuers by gaining an understanding of
their experience and qualifications.
• Evaluating the scope, competence and objectivity of the
Group's internal experts who produced the Resource
Statement utilised within the valuation of undeveloped
resources.
• Obtaining details of comparable transactions involving the
sale of undeveloped ore resources from our valuation
ope
the Group's
specialists to infor
valuation of undevel
rm our assessment of
oped ore resources.
• Obtaining details o
involving the sale
inform our assess
property, plant and e
f the recent comparable transactions
of property, plant and equipment to
sment of the Group's valuation of
equipment.
• Assessing the Group
of Australian Accoun
p's disclosure against the requirements
nting Standards.
onitamornfIr ethO
Other Information is financial and non-fina
provided in addition to the Financial Rep
Other Information.
ancial information in Rex Minerals Limited’s annual reporting which is
port and the Auditor’s Report. The Directors are responsible for the
Our opinion on the Financial Report does
an audit opinion or any form of assurance
and our related assurance opinion.
not cover the Other Information and, accordingly, we do not express
e conclusion thereon, with the exception of the Remuneration Report
i
i h
I
In connection with our audit of the Fina
doing so, we consider whether the Othe
our knowledge obtained in the audit, or ot
f h Fi
ancial Report, our responsibility is to read the Other Information. In
er Information is materially inconsistent with the Financial Report or
therwise appears to be materially misstated.
di
We are required to report if we conclude
based on the work we have performed on t
Auditor’s Report we have nothing to repor
e that there is a material misstatement of this Other Information, and
on the Other Information that we obtained prior to the date of this
ort.
R
tocreiDethfoesitilibisnopes
rs
hetorf
e
icnanFi
tropeRal
The Directors are responsible for:
(cid:1)
(cid:1)
(cid:1)
preparing the Financial Report that gi
gives a true and fair view in accordance with Austraaliaan Accounting
Staandardds and the C rpporaations Act 2001
2001
or
ardt
r
r
i
implementing necessary internal cont
and fair view and is free from materia
ntrol to enable the preparation of a Financial Report that gives a true
al misstatement, whether due to fraud or error
assessing the Group and Company's
going concern basis of accounting is a
going concern and using the going c
Group and Company or to cease oper
s ability to continue as a going concern and whether the use of the
appropriate. This includes disclosing, as applicable, matters related to
concern basis of accounting unless they either intend to liquidate the
rations, or have no realistic alternative but to do so.
A
troepRlaicnanFie htfotidaue htrofesitilibisnopsers’rotidu
Our objective is:
(cid:1)
(cid:1)
to obtain reasonable assurance about whether the Financial Re
misstatement, whether due to fraud or error; and
eport as a whole is free from material
to issue an Auditor’s Report that includes our opinion.
Reasonable assurance is a high level of assurance, but is not a
accordance with Austraaliaan Auditing Staandardds will always detect a ma
accordance with Austraaliaan Auditing Staandardds will always detect a ma
t
t
r
r
r
r
i
i
guarantee that an audit conducted in
terial misstatement when it exists.
Misstatements can arise from fraud or error. They are considered ma
they could reasonably be expected to influence the economic decisi
Financial Report.
aterial if, individually or in the aggregate,
ons of users taken on the basis of the
A further description of our responsibilities for the audit of the Financ
Assuraan Standaardds Boardd website at: http:///www.auasb.gov.a
description forms part of our Auditor’s Report.
rd
ce
r
r
/
cial Report is located at the Auditing and
u/auditors_responsibilities/ar1.pdf. This
eR
tpor
itarunemeRheton
eRon
tpor
Opinion
Directors’ responsibilities
In our opinion, the Remuneration Report
Rex Minerals Limited for the year ended
June 2018, complies with Section 300A
the C rp raations Act 2001.
por
or
of
30
of
The Directors of the Company are responsible for the
preparation and presentation of the Remuneration Report in
accordance with Section 300A of the C rp raations Act 2001.
por
or
Our responsibilities
We have audited the Remuneration Report included in pages
12 to 17 of the Directors’ report for the year ended 30 June
2018.
responsibility
the
Our
Remuneration Report, based on our audit conducted in
accordance with Austraaliaan Auditing Staa daardds.
i
to express an opinion on
rndt
is
r
KPMG
Paul Cenko
Paul Cenko
Partner
Adelaide
13 September 2018
REX MINERALS LTD
ADDITIONAL SHAREHOLDER INFORMATION
Additional information required by the Australian Stock Exchange (ASX) Listing Rules and not shown elsewhere in this
report is set out below and the information was applicable as at 31 July 2018.
Distribution of ordinary shares
The number of shareholders, by size of holding:
Total % of
Range Holders Units Issued Capital
1 – 1,000 647 287,943 0.10
1,001 – 5,000 1,222 3,507,307 1.23
5,001 – 10,000 683 5,463,989 1.92
10,001 – 100,000 1,387 52,058,418 18.32
100,001 – 999,999,999 441 222,940,575 78.43
Total
4,380 284,258,232 100.00
The number of shareholders holding less than
a marketable parcel: 1,903
Twenty largest shareholders
The names of the twenty largest shareholdings of quoted ordinary shares are:
Number of % of
Name Shares Held Issued Capital
Grand South Development Limited 14,653,777 5.16
1.
BNP Paribas Noms Pty Ltd (DRP) 9,401,516 3.31
2.
United Overseas Service Management Ltd 7,084,399 2.49
3.
JP Morgan Nominees Australia Limited 5,866,490 2.06
4.
S & S Olsen Pty Ltd 5,752,000 2.02
5.
Greenstone Property Pty Ltd (Titeline Property A/C) 5,345,531 1.88
6.
Stone Poneys Nominees Pty Ltd (Chapman Super Fund A/C) 4,007,833 1.41
7.
Panjeta Investment Group Pty Ltd 3,940,000 1.39
8.
9.
Mrs Natalie Laufmann 3,500,000 1.23
10. Mrs Vickie Jane Jones 3,400,157 1.20
11.
HSBC Custody Nominees (Australia) 2,894,470 1.02
12. Mr Elliott Grant Wylie 2,682,000 0.94
Dr Steven G Rodwell 2,664,240 0.94
13.
14.
Citicorp Nominees Pty Limited 2,228,672 0.78
15. Ms Fei Chen 2,106,200 0.74
BNP Paribas Noms Pty Ltd (UOB KH P/L AC UOB KH DRP) 1,916,979 0.67
16.
HSBC Custody Nominees (Australia) 1,890,071 0.66
17.
Mr Paul Christopher Walker 1,885,000 0.66
18
19.
ZW 2 Pty Ltd 1,850,000 0.65
20. Mrs Philippa Jean Laufmann (Laufmann Family A/C) 1,700,000 0.60
Total
84,769,335 29.81
Substantial shareholders
There is one substantial shareholder lodged with the Company:
Name Number of % of
Shares Held Issued Capital
Grand South Development Limited 14,653,777 5.16
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.
Stock exchange listing
Rex Minerals Ltd is listed on the ASX. The Company’s ASX code is RXM.
ANNUAL REPORT
2 0 1 8
46
REX MINERALS LTD
NOTES for the year ended 30 June 2018
47
REX MINERALS LTD
NOTES for the year ended 30 June 2018
ANNUAL REPORT
2 0 1 8
48
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N 12 124 960 523
Designed and Produced by
Celtink Creative info@celtink.com
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ANNUAL REPORT
STAY IN TOUCH
A Level 19, 11 Waymouth Street
Adelaide, South Australia 5000
T +61 (0) 8 8299 7100
F +61 (0) 8 8299 7199
P PO Box 3435
Rundle Mall, South Australia 5000
E rex@rexminerals.com.au
W www.rexminerals.com.au
N 12 124 960 523
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