ANNUAL REPORT
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ANNUAL REPORT
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CORPORATE DIRECTORY
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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)
Mr Ian Smith (Non-Executive Director)
Mr Ronald Douglas (Non-Executive Director)
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)
COMPANY SECRETARY
Ms Kay Donehue
PRINCIPAL and REGISTERED OFFICE
Level 6, 1 Collins Street
Melbourne, Victoria 3000
CONTACT DETAILS
Rex Minerals Ltd
PO Box 3435
Rundle Mall, South Australia 5000
Telephone: +61 (0) 8 8299 7100
Email:
rex@rexminerals.com.au
Website: www.rexminerals.com.au
OPERATION LOCATIONS
HOG RANCH
NEVADA USA
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
HILLSIDE
SOUTH AUSTRALIA
ANNUAL REPORT 30 JUNE
20
19
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
4-10
5
11-22
23
24
25
26
27-43
44
45
46-49
50
1
REX MINERALS LTD
LETTER FROM THE CHAIRMAN AND
THE CHIEF EXECUTIVE OFFICER
A
B
N 12 124 960 523
A Level 6 1 Collins Street Melbourne
Victoria 3000 Australia
T (08) 8299 7100
P PO Box 3435 Rundle Mall
South Australia 5000 Australia
E rex@rexminerals.com.au
W www.rexminerals.com.au
Dear Fellow Shareholder,
This year has seen many fundamental developments that affect our Company. Unquestionably, those external forces, reflected in the
macro-global economic and political framework, deeply affect the business environment in which we operate and influence our actions.
Internally, we have been deliberate and have adjusted our Company’s underlying structure to broaden our opportunities.
Importantly, we began the year by rebalancing and adding significant operational and development expertise to the Board,
with the appointment of Ian Smith and Ron Douglas. As a smaller company, swift and informed decisions are crucial to navigating
the path forward. Our ability to enter into and transact on the recent Hog Ranch acquisition is evidence of their already
significant contribution.
To explain further our acquisition of Hog Ranch, let me reflect on the DNA of Rex Minerals as an explorer with development aspirations.
There can be no doubt that our portfolio, built on copper in South Australia, gives us significant “pounds in the ground” leverage
within one of the commodities crucial to the electrification revolution which underpins efforts in some parts of the world to reduce
carbon emissions.
It is evident that the pace of this revolution and the obvious emerging supply deficit has yet to materialise.
Viewed simplistically, the next few years could see a future where either:
(cid:129)
the world generally moves forward with confidence into this electrification revolution and the inherent supply constraints in
the copper market see Rex shareholders rewarded; or
(cid:129)
the electrification revolution and/or global economic growth stalls and the copper supply squeeze continues to be delayed.
Currently, the latter scenario prevails, and in this reality, gold offers a unique hedge and industry investment opportunity.
Seizing on this thematic brings us to Hog Ranch. Given our exposure to Australia, scanning the world, no jurisdiction beckons more
favourably for geological, geographical and sovereign opportunity than Nevada.
In one transaction, we have significantly reduced sovereign risk, and diversified commodity risk to add the perfect hedge investment.
In this regard, I would like to reflect on some hard numbers which speak to the shareholder benefits we see from this opportunity:
(cid:129)
(cid:129)
In one year, the gold price has moved from an already-strong incentive price of US$1,200 to US$1,500/oz,
an increase of 25%.
In the same timeframe, the copper price has declined by approximately 16% and sits at two-year lows, well below the
consensus incentive price to replace production.
(cid:129) Nevada is recognised by the Fraser Institute (Investment Attractiveness Index) as the Number One destination globally –
up from second spot last year. In the same period, and while still attractive, South Australia has slipped from Number 14
to Number 24.
(cid:129) The gold district in Nevada ranks arguably as one of the most prolific and prospective geological opportunities globally.
(cid:129) Whilst completing due diligence on what is an exploration investment, we have already completed and issued a maiden
resource statement for the prospect.
(cid:129) We negotiated the transaction, on a no cash basis at a share price circa A$0.06 (roughly A$600K for the first tranche)
which equates to an entry price based on the maiden resource of A$0.72/oz or US$0.49/oz.
REX MINERALS LTD
LETTER FROM THE CHAIRMAN AND
THE CHIEF EXECUTIVE OFFICER
A
B
N 12 124 960 523
A Level 6 1 Collins Street Melbourne
Victoria 3000 Australia
T (08) 8299 7100
P PO Box 3435 Rundle Mall
South Australia 5000 Australia
E rex@rexminerals.com.au
W www.rexminerals.com.au
So Rex shareholders now have access to an asset acquired for notionally less than US$0.50/oz on day one.
I might draw your attention to just a fraction of the credentials of the small team that we have at Rex. Ian Smith ran Newcrest,
Australia’s largest gold miner, taking it from near obscurity to a behemoth, and acquiring its prize asset, Lihir along the way. Richard
Laufmann, having operated the WMC Gold Operations, as a by-line constructed one of the most successful Heap Leach projects in the
country during his tenure and has a long history with gold.
To summarise, this investment offers Rex shareholders immediate exposure to gold and provides camp-scale opportunities for small
and large low-grade surface projects in addition to exciting high-grade underground epithermal targets.
This in no way changes the fact that Hillside is our flagship asset. The past year and immediate period ahead see us continue to ready
the project for development. We have committed over $15 million of our precious funds and five years to the Program for Environment
Protection and Rehabilitation (PEPR) licensing process alone, including many hundreds of consultations with community and other
stakeholders. We are very close to the ‘next steps’ here and we hope to report on this in the very near future.
In continuing this theme, with the PEPR resolution a key component in driving finalisation of the updated feasibility study, as well as
next steps in our financing discussions, we will update the market as we make material progress on this front.
I look forward to an exciting road ahead, in which we can now leverage both opportunities to our best commercial benefit.
Yours sincerely,
Dr David Carland
Chairman
Mr Richard Laufmann
Chief Executive Officer
REX MINERALS LTD
REVIEW OF OPERATIONS for the year ended 30 June 2019
1 9
CORPORATE
The year commenced with the completion of Rex Minerals Ltd’s (Rex or the Company) successful capital raising which
was announced on 12 June 2018. Following shareholder approval on 25 July 2018, 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 $1.0 million for the Share Purchase Plan, before costs.
The Company completed the full assignment of the Adelaide office lease to a new tenant and relocated its registered office
and principal place of business to Level 6, 1 Collins Street, Melbourne during the financial year. The lease assignment
represents a saving on the Company’s remaining five-year lease commitment totalling approximately $2.5 million.
Rex was pleased to appoint two Non-Executive Directors to its Board, Ian Smith and Ron Douglas, on 18 February 2019.
The appointment of two such highly experienced mining operators significantly enhances the strategic, technical and
operational talent within the Company.
HILLSIDE PROJECT – SOUTH AUSTRALIA
Rex submitted the full Program for Environment Protection and Rehabilitation (PEPR) document in February 2018 and
obtained the first full formal feedback from the Department of Energy and Mining (DEM) and other regulatory
departments in September 2018. Rex proceeded to work through the feedback with the regulators, resulting in the next
full version of the PEPR being submitted in June 2019.
An independent peer review of the Hillside PEPR was commissioned in May 2019 by Rex confirming committed
design/engineering and management controls, if implemented as described, are appropriate in the context of the agreed
Environmental Outcomes for the Hillside Project; and the nominated monitoring program as described in the PEPR will
be sufficient to demonstrate the performance of the Hillside Project in achieving the Environmental Outcomes.
All reviewing agencies have been through their respective sections of the PEPR with our team, noting that the PEPR had
not technically changed since the February 2018 submission. It is anticipated any further comments will be minor and will
provide for completion of the PEPR after which the remaining land access agreements can be finalised. Throughout the
year Rex continued to meet with a variety of community members, businesses and other stakeholders around the Hillside
Project and more broadly the Yorke Peninsula.
The technical team at Rex has been focused on the Extended Feasibility Study (2015 EFS) cost update into 2019
dollars, including a detailed review and refinement of certain decisions and assumptions contained in the original.
While some cost inputs have escalated over the past four years (eg: power and exchange rate assumptions), the
possibilities of significant operating cost savings have emerged in the areas of mining fleet operations and maintenance.
The quantification of these savings has warranted the engagement of external parties, thus contributing to delaying
our process. One key objective in beginning this EFS update was always to improve the economics of the Hillside Project,
and this is fundamentally still important.
Completion of the Chinese Feasibility Study (CFS) has been delayed by Rex due to costing updates of the mining sections,
however finalisation of the CFS report is progressing. The purpose of commissioning the CFS was to convert our EFS to
Chinese feasibility standards, which are understood by Chinese banks. This should provide Rex with a clear opportunity to
engage Chinese parties interested in financing the project. In addition, it allowed us to assess the issues should we choose
to pursue Chinese Engineering, Procurement, Construction Management (EPCM) development in the future.
Rex completed its lease-wide strategic review of its exploration licenses to evolve further the exploration target
portfolio, this has generated new regional Iron Oxide Copper Gold (IOCG) targets under minimal cover. The Company
is now considering the timing and financing required to progress these, in what we 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 (t) of copper contained in concentrate and 24,000 ounces (oz) of gold per annum.
ANNUAL REPORT
2 0 1 9
4
REX MINERALS LTD
REVIEW OF OPERATIONS (Continued) for the year ended 30 June 2019
HILLSIDE PROJECT – SOUTH AUSTRALIA (CONTINUED)
Figure 1: Location of the Hillside Project and Rex’s exploration licences on the Yorke Peninsula.
SOUTH AUSTRALIAN TENEMENT SCHEDULE at 30 June 2019
Tenement
Location
Lease Status
Area Type
Current Area
Expiry Date
EL5508
EL5683
Moonta South
Granted
Moonta South
Granted
EL5981 1
Moonta South
Granted
EL6100
EL6136
EL6143
Moonta South
Granted
Moonta South
Granted
Moonta South
Granted
EL6189 2
Moonta South
Granted
EL6245 3
Moonta South
Granted
ML6438
Hillside
Granted
EML6439
Hillside
Granted
MPL146
Hillside
Granted
km2
km2
km2
km2
km2
km2
km2
km2
Ha
Ha
Ha
74
21
122
94
185
104
354
1,168
2,998
225
94
04/11/2019
09/06/2020
22/06/2019
16/01/2020
19/03/2020
15/04/2020
01/08/2019
01/08/2019
15/09/2035
15/09/2022
15/09/2035
1 Licence renewal submitted 21/05/2019 to the DEM with a reduction to 108km2. The renewal is currently being processed.
2 Licence renewal submitted 11/06/2019 to the DEM. Renewal of licence term to 01/08/2022 granted to Rex on 15 July 2019.
3 Licence renewal submitted 11/06/2019 to the DEM and currently being processed.
5
1 9
REX MINERALS LTD
HOG RANCH – NEVADA, USA
REVIEW OF OPERATIONS (Continued) for the year ended 30 June 2019
Acquisition
Rex entered into a non-binding Heads of Agreement (HOA) with Hog Ranch Group Pty Ltd (HRG) on 17 July 2019.
The non-binding HOA allowed Rex exclusivity to complete due diligence and finalise commercial terms required to prepare
formal documentation. Rex completed six months due diligence (both before and after the signing of the HOA) and all
decisions regarding this acquisition were made by the Board, subject to review by an independent subcommittee
established for this purpose.
Rex announced on 20 August 2019 that it had completed the acquisition of HRG including the Hog Ranch Gold Property
(Hog Ranch) in Nevada, USA. This investment offers Rex shareholders immediate exposure to the gold sector in one of the
world’s most well-endowed gold regions and immediately diversifies our commodity spread and geographical risk. Hog
Ranch provides camp-scale opportunities for small and large low-grade surface projects, in addition to exciting high-grade
underground epithermal deposits.
The consideration for the acquisition is based on the Rex share price at completion date (9 cents per share) and is deemed
to be $900,000 plus an additional 20 million shares (at an imputed value at this share price of $1.8 million) if the
milestone outcomes are achieved. The consideration is payable in the following form:
1. 10 million fully paid ordinary Rex shares;
2. 20 million Hog Ranch Consideration Rights which convert to Rex shares on the outcome of the
following Milestones:
a.
5 million Hog Ranch Consideration Rights on announcement by Rex to ASX by no later than 31 October
2024 on completion of an Inferred Mineral Resource in addition to any Indicated and Measured Mineral
Resource in total of 2 million ounces (Moz) or higher of contained gold as defined by the 2012 JORC Code
with respect to the Hog Ranch Project and has a minimum grade of 0.4 grams per tonne (g/t) of gold in
addition to a minimum tonnage of 100 million tonnes (Mt); and
b.
15 million Hog Ranch Consideration Rights on announcement by Rex to ASX by no later than 31 October
2024 of the Board approving a decision to mine the Hog Ranch Project.
Consistent with ASX requirements, the terms of the Hog Ranch Consideration Rights are subject to shareholder approval
at the upcoming Annual General Meeting (AGM) to be held in November 2019. The AGM will also seek the approval of
the shares to be issued to Rex’s CEO as part of the HRG acquisition. The notice of meeting will outline further information
and details of the terms subject to shareholder approval.
Figure 2: Location of the Hog Ranch Property
situated in Nevada, USA.
Below: Hog Ranch during WMC operations.
ANNUAL REPORT
2 0 1 9
6
REX MINERALS LTD
REVIEW OF OPERATIONS (Continued) for the year ended 30 June 2019
HOG RANCH – NEVADA, USA (CONTINUED)
Mineral Resource Summary
On 2 September 2019, Rex announced a maiden Inferred Mineral Resource estimate for Hog Ranch (the documentation
and reporting of which has been independently peer reviewed by Peter Stoker of AMC Consultants Pty Ltd). The Inferred
Mineral Resource consists of 44Mt @ 0.6g/t equating to 0.83Moz of gold.
Classification
Inferred
Tonnes
44Mt
Gold Grade
0.6g/t
Gold Ounces
0.83Moz
The maiden Mineral Resource is based on a large historical drilling database containing a total of 2,678 drill holes.
A large percentage of this historical drilling was completed by Western Mining Corporation Ltd (WMC) which operated
an open pit and heap leach operation there from 1988 through to 1991.
The Mineral Resource is based on the large shallow disseminated gold mineralisation that exists from surface at Hog
Ranch and extends to 175m below surface.
Table 1: Summary results from the Hog Ranch block model at various cut-off grades within a US$1,300/oz pit shell.
Cut-off Grade
Tonnes
Gold Grade
Gold Ounces
0.2g/t
0.3g/t
0.4g/t
0.5g/t
64Mt
44Mt
30Mt
20Mt
Exploration Target
0.5g/t
0.6g/t
0.7g/t
0.8g/t
0.99Moz
0.83Moz
0.67Moz
0.53Moz
There is considerable evidence for further extensive shallow gold mineralisation at Hog Ranch outside the Inferred Mineral
Resource. Rex has defined an Exploration Target of approximately 0.6Moz to 1.6Moz based on drill hole data that lies
outside of the Inferred Mineral Resource which includes a distance up to 100m from the drill data (lower range estimate),
and a distance up to 400m from the drill data (upper range estimate). This Exploration Target takes into consideration
the natural variation of the gold grade. Table 2 below is a summary of the Exploration Target ranges using a cut-off grade
of 0.3g/t gold.
Similar additional parameters as defined for the Hog Ranch Inferred Mineral Resource, as announced by Rex on
2 September 2019, were also applied to the extrapolated block model which is the basis for the Exploration Target.
The potential quantity and grade of the Exploration Target is conceptual in nature, there has been insufficient exploration
to estimate a Mineral Resource in this area and it is uncertain if further exploration will result in the estimation of a
Mineral Resource.
Table 2: Exploration Target expressed as a range of possible outcomes from further exploration activities.
Category
Cut-off Grade
Tonnes
Gold Grade
Gold Ounces
Exploration Target – Lower
Exploration Target – Upper
0.3g/t
0.3g/t
46Mt
85Mt
0.4g/t
0.6g/t
~0.6Moz
~1.6Moz
7
REX MINERALS LTD
1 9
HOG RANCH – NEVADA, USA (CONTINUED)
REVIEW OF OPERATIONS (Continued) for the year ended 30 June 2019
Deeper High-Grade Vein Hosted Targets
There is an extensive body of research which has shown that underneath shallow gold deposits, similar to the dispersed
gold mineralisation identified at Hog Ranch, there often exists vein hosted gold deposits which can contain very high-grade
gold mineralisation. This mineralised zone is often at a specific depth range known as the “boiling zone”. This boiling zone
typically exists a few hundred metres beneath the ancient surface from when the gold mineralisation was deposited, and at
Hog Ranch, is interpreted to exist at least at 150m or further beneath almost all the historical drilling information
(Figure 3).
Figure 3: Schematic diagram representing the current day setting of the gold target types at Hog Ranch.
Hog Ranch during WMC operations.
ANNUAL REPORT
2 0 1 9
8
REX MINERALS LTD
REVIEW OF OPERATIONS (Continued) for the year ended 30 June 2019
HOG RANCH – NEVADA, USA (CONTINUED)
Deeper High-Grade Vein Hosted Targets (Continued)
The high-grade vein hosted gold mineralisation at the Sleeper and Midas deposits are examples of this style of target,
which are interpreted to have formed as part of the same geological event as Hog Ranch.
Evidence at Hog Ranch of this style of
deposit includes:
(cid:129) Numerous small but very high-grade
quartz-adularia veins (Figure 4),
particularly in the mined 139 and
Geib open pits; and
(cid:129) Multiple very high-grade assay results
within the Hog Ranch drill hole
database (Table 3).
Figure 4: Laminated quartz-adularia vein
from the 139 pit at Hog Ranch. Significant
amounts of fine visible gold can be identified
along some specific laminations within this
rock sample.
Table 3: Significant drilling results (over 20g/t gold) from the Hog Ranch drill hole database outside of the mined
historical open pits. All reported intersections are down hole lengths only and not true widths. The drill intersections
are largely interpreted to be from near vertical quartz veins which implies that the true width may be much less than
the reported down hole lengths.
Hole Number
Pit/Area
From (feet)
To (feet)
Interval (feet)
Interval (m)
Gold Grade(g/t)
6-069
6-146
6-155
7-019
7-120
7-126
7-215
7-238
8-018
8-018
8-025
8-199
8-255
9-042
9-044
91-375
9-240
95-31
Geib
Krista
Geib
Geib
Geib
Geib
Geib
Geib
Krista
Krista
Geib
139
139
Geib
Geib
139
139
Cameco
275
250
260
210
205
250
145
200
395
415
270
300
345
165
240
240
105
165
280
255
265
215
215
255
150
205
400
420
275
305
350
195
245
245
110
185
5
5
5
5
10
5
5
5
5
5
5
5
5
30
5
5
5
20
1.5
1.5
1.5
1.5
3.0
1.5
1.5
1.5
1.5
1.5
1.5
1.5
1.5
9.1
1.5
1.5
1.5
6.1
31.7
20.5
35.2
26.5
59.5
50.0
38.7
92.9
28.3
32.7
64.9
194.1
23.7
19.7
72.8
44.4
26.3
61.8
9
REX MINERALS LTD
1 9
COMPETENT PERSONS STATEMENT
REVIEW OF OPERATIONS (Continued) for the year ended 30 June 2019
Mineral Resources, Exploration Target and Exploration Results
The information in this Annual Report for the Hog Ranch Property that relates to Exploration Results, Exploration Target
or Mineral Resources is based on, and fairly reflects, information compiled by Mr Steven Olsen who is a Member of the
Australasian Institute of Mining and Metallurgy and an employee of Rex Minerals Ltd. Mr Olsen is also a shareholder
of Rex Minerals Ltd. Mr Olsen has sufficient experience which is relevant to the style of mineralisation and type of deposit
under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012
Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr Olsen
consents to the inclusion in the Annual Report of the matters based on his information in the form and context in which
it appears.
All information compiled in this Annual Report has been previously announced and this statement fairly represents a
summary of the supporting information and documentation. Rex Minerals Ltd confirms that it is not aware of any new
information or data that materially affects the information included in the market announcement and that all material
assumptions and technical parameters underpinning the estimates included in referenced previous market announcements
continue to apply and have not materially changed.
Forward-Looking Statements
This Annual Report contains “forward-looking statements”. All statements other than those of historical facts included in
this Annual Report are forward-looking statements. Where the Company expresses or implies an expectation or belief as
to future events or results, such expectation or belief is expressed in good faith and believed to have a reasonable basis.
However, forward-looking statements are subject to risks, uncertainties and other factors, which could cause actual results
to differ materially from future results expressed, projected or implied by such forward-looking statements. Such risks
include, but are not limited to, copper, gold and other metals price volatility, currency fluctuations, increased production
costs and variances in ore grade or recovery rates from those assumed in mining plans, as well as political and operational
risks and governmental regulation and judicial outcomes. The Company does not undertake any obligation to release
publicly any revisions to any “forward-looking statement”.
Above and Left: Hog Ranch Project, Nevada.
ANNUAL REPORT
2 0 1 9
10
DIRECTORS’
REPORT
For the year ended 30 June 2019
11
REX MINERALS LTD
DIRECTORS’ REPORT For the year ended 30 June 2019
1 9
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 2019
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. His roles have
seen him based in the US and London.
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 previous roles include 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 whose banking experience extended beyond
Australasia to cover Asia, the Sub Continent, the Middle East, Europe and America.
His professional experience has included global business expansion, internal and
external consulting, treasury projects and international political agendas. As chief
executive of ANZ Bank for New Zealand, he was responsible to the local board for
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 9
12
REX MINERALS LTD
DIRECTORS’ REPORT (Continued) for the year ended 30 June 2019
DIRECTORS (CONTINUED)
Name, qualifications and
independence status
Mr Mitchell H Hooke AM
Independent Non-
Executive Director
(B.Rur.Sc. (UNE), MAIA,
MAICD)
Mr Ian Smith
Independent Non-
Executive Director
(B.E (Hons, Mining), BF in
Admin, FIEAust, FAusIMM,
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 Grains, Food and Grocery, and the Minerals
Councils of Australia spanning over 25 years until his retirement from the MCA at 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 coal-based technology company GTL Energy Ltd, and was formerly a non-
executive director of USA private equity 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.
Mr Ian Smith was appointed a Director of Rex Minerals on 18 February 2019.
Mr Smith is a mining engineer with more than 40 years’ experience in the mining and
services sector. He has held some of the most senior positions in the Australian resources
industry, most recently managing director and chief executive officer of Orica. Prior to
that, he was managing director and chief executive officer of Newcrest, growing the
business to what has become Australia’s biggest, and globally one of the largest, gold
mining companies. Mr Smith is a Fellow of both the Australasian Institute of Mining and
Metallurgy and the Institute of Engineers.
In prior roles Mr Smith was global head of operational and technical excellence with Rio
Tinto, London and managing director – Comalco Aluminium Smelting with Rio Tinto in
Brisbane. He has technical, operational, financial and strategic expertise, having also held
senior and executive positions with WMC Resources, Pasminco and CRA. Mr Smith is a
past president of the Australian Mines & Metals Association and is a past chairman of the
Minerals Council of Australia. Mr Smith was formerly a non-executive director of White
Rock Minerals Ltd.
Mr Ronald Douglas
Mr Ronald Douglas was appointed a Director of Rex Minerals on 18 February 2019.
Independent Non-
Executive Director
(B.Eng, FAIM, MAustIMM,
MAICD)
Mr Douglas is an engineer by qualification and has extensive experience leading owners’
teams for major projects located around the world. Mr Douglas is the Executive Vice
President, Project Delivery for Ausenco and he has over 35 years’ global experience in
project delivery and resources sector management. His previous roles have included global
head of projects and technology for Orica; executive general manager projects and studies
for Newcrest; chief executive officer of Australian Solomons Gold; managing director for
Anglesey Aluminium Metal (part of Rio Tinto); and general manager for Rio Tinto’s
aluminium and coal projects.
Mr Douglas is a Fellow of the Australian Institute of Management, a Member of the
Australasian Institute of Mining and Metallurgy and a Member of Australian Institute
of Company Directors. He has extensive and well-recognised expertise in industrials,
minerals and metals, as well as oil and gas. Mr Douglas was formerly a non-executive
chairman of Highlands Pacific Limited.
13
REX MINERALS LTD
1 9
COMPANY SECRETARY
DIRECTORS’ REPORT (Continued) for the year ended 30 June 2019
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 was previously Company Secretary of
Indophil Resources NL which was delisted from the ASX in 2015 following completion of a Scheme of Arrangement
with its major shareholder.
Ms Donehue is an Associate of the Governance Institute of Australia and holds a Graduate Diploma in Applied
Corporate Governance.
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
Remuneration Committee
Meetings 4
Dr David Carland
Mr Richard Laufmann1
Mr Alister Maitland
Mr Mitchell Hooke
Mr Ian Smith2
Mr Ronald Douglas3
A
6
6
6
5
3
2
B
6
6
6
6
3
3
A
2
2
2
2
1
1
B
2
2
2
2
1
1
A
–
–
–
–
–
–
B
–
–
–
–
–
–
A – Number of meetings attended.
B – Number of meetings held during the year whilst the Director held office.
1 Mr Laufmann is not a member of the Committees but attends meetings as appropriate by invitation.
2 Mr Smith is not a member of the Committees but attends meetings as appropriate by invitation.
3 Mr Douglas is not a member of the Committees but attends meetings as appropriate by invitation.
4 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.
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 2019 and was approved by the Board on 12 September 2019.
ANNUAL REPORT
2 0 1 9
14
REX MINERALS LTD
DIRECTORS’ REPORT (Continued) for the year ended 30 June 2019
PRINCIPAL ACTIVITIES
The principal activity of the Group during the year was minerals exploration, evaluation and development. Rex intends to
make the best use of, and fully exploit, the Hillside Mineral 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
coincident with the copper supply deficit currently emerging;
optimise the Hillside Project through:
> capital cost reductions by competitive re-tender of plant and equipment;
> an operating effectiveness review;
complete the acquisition of Hog Ranch Group Pty Ltd including the Hog Ranch Gold property (Hog Ranch)
located in Nevada, USA;
announce a maiden Inferred Mineral Resource for Hog Ranch;
further the Hog Ranch Resource validation and commence broader economic studies;
further develop the exploration target portfolio, for our highly prospective gold mining claims in Nevada and our
Iron Oxide Copper Gold (IOCG) tenements in South Australia; and
evolve the pool of corporate and financing options available.
(cid:129)
(cid:129)
(cid:129)
(cid:129)
(cid:129)
(cid:129)
OPERATING AND FINANCIAL REVIEW
The income statement shows a loss after tax of $5.1 million (2018: $5.2 million) for the year. The Group has no bank
debt. As at 30 June 2019, the Group had a cash position of $2.7 million (2018: $4.0 million). Operating activities
resulted in a net cash outflow for the year of $4.6 million (2018: $4.8 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
Rex announced on 20 August 2019 completion of the acquisition of Hog Ranch Group Pty Ltd and has issued 9,353,849
fully paid ordinary shares as consideration to the vendors other than the CEO. The consideration to be issued to the CEO,
together with the Hog Ranch Consideration Rights, are subject to shareholder approval at the upcoming AGM to be held
in November 2019.
Other than mentioned above, no matters or circumstances have arisen since 30 June 2019 that have significantly affected
the Group’s operations, results or state of affairs.
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 and mineral claims 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.
15
REX MINERALS LTD
DIRECTORS’ REPORT (Continued) for the year ended 30 June 2019
1 9
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.
Details of amounts paid to the auditor of the Group, KPMG and its related practices for audit services during the year,
are set out below.
2019 2018
$ $
Audit and review of financial statements 48,128 48,175
REMUNERATION REPORT – AUDITED
The Directors present the Remuneration Report for the year ended 30 June 2019, 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.
ANNUAL REPORT
2 0 1 9
16
REX MINERALS LTD
DIRECTORS’ REPORT (Continued) for the year ended 30 June 2019
REMUNERATION REPORT – AUDITED (CONTINUED)
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 22 November
2018. 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)
2019
$
5.1
2018
$
5.2
2017
$
0.8
2016
$
5.1
2015
$
8.7
Closing share price at financial year’s end ($)
0.053
0.105
0.056
0.051
0.105
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 AGM, 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.
17
1 9
REX MINERALS LTD
DIRECTORS’ REPORT (Continued) for the year ended 30 June 2019
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 2019
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2 0 1 9
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REX MINERALS LTD
DIRECTORS’ REPORT (Continued) for the year ended 30 June 2019
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
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19
1 9
REX MINERALS LTD
DIRECTORS’ REPORT (Continued) for the year ended 30 June 2019
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.
During the year, the Company issued 2.0 million options and issued 3.0 million ordinary shares as a result of the exercise
of options. At 30 June 2019, there were 15.8 million unquoted options over ordinary shares of the Company, 13.8 million
at an exercise price of 6.3 cents expiring 30 November 2019 and 2.0 million at an exercise price of 8.4 cents, expiring
31 January 2023. Since the end of the financial year, the Company has not issued any ordinary shares as a result of the
exercise of options.
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.
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
2018
Number
of
options
granted
Number
of options
exercised
Number
of
options
vested
% of
options
vested
Held at
30 June
2019
Fair
value of
options
granted
in 2019
Fair
value
of options
expensed
in 2019
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
–
–
–
1,000,000
1,000,000
–
1,000,000
666,000
1,000,000
Mr Ian Smith
Mr Ronald Douglas
–
–
1,000,000
1,000,000
Mr Richard Laufmann
3,000,000
Mr Greg Hall
1,500,000
Ms Amber Rivamonte
1,500,000
–
–
–
–
–
–
–
–
3,000,000
100,000
1,500,000
–
1,500,000
100
100
100
–
–
100
100
100
–
1,000,000
334,000
–
–
–
$1,336
$1,336
$1,336
–
–
–
1,000,000
$28,800
$3,620
1,000,000
$28,800
$3,620
$25,180
$25,180
3,000,000
1,400,000
1,500,000
–
–
–
$4,008
$2,004
$2,004
–
–
–
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 2018 financial year. No options lapsed or were
forfeited during the 2018 financial year.
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
1,000,000
Mr Richard Laufmann
3,000,000
Mr Greg Hall
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
ANNUAL REPORT
2 0 1 9
20
REX MINERALS LTD
DIRECTORS’ REPORT (Continued) for the year ended 30 June 2019
REMUNERATION REPORT – AUDITED (CONTINUED)
Reconciliation of options and ordinary shares held by Key Management Personnel (KMP) (Continued)
The fair value of the unlisted options granted during 2019 has been measured independently at the date of the grant
based upon the Black-Scholes option pricing model. The inputs used in the measurement of the fair value at grant date
are as follows.
Grant date
14 February 2019
Fair value per option at grant date
2.88 cents
Exercise price per option
8.4 cents
Premium to closing share price prior to grant date
10.5%
Expiry date
31 January 2023
Options vest in three equal tranches as follows:
(cid:129) Tranche 1 – one third vest on 31 January 2020;
(cid:129) Tranche 2 – one third vest on 31 January 2021;
(cid:129) Tranche 3 – one third vest on 31 January 2022.
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.
The terms and conditions of each grant of options affecting remuneration in the current and future reporting periods are
set out below.
Grant date
Vesting dates
Expiry date
Exercise
price
(cents)
Value per
option at grant
date (cents)
%
vested
22 December 2015 One third 30 November 2016
One third 30 November 2017
One third 30 November 2018
14 February 2019
One third 31 January 2020
One third 31 January 2021
One third 31 January 2022
Shareholdings
30 November 2019
6.3
2.51
100
31 January 2023
8.4
2.88
–
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
2018 or
start date
Received
on
exercise
of option
Purchased
or sold
during the
year
Held at
30 June
2019
Received
on exercise
of option
Purchased
or sold
since the
end of year
Held at
date of this
report
Dr David Carland
886,524
1,000,000
136,364
2,022,888
Mr Alister Maitland
202,000
–
136,364
338,364
Mr Mitchell Hooke
305,143
666,000
136,364
1,107,507
Mr Ian Smith
Mr Ronald Douglas
–
–
Mr Richard Laufmann
3,541,666
–
–
–
–
–
–
–
909,000
4,450,666
Mr Greg Hall
–
100,000
–
100,000
Ms Amber Rivamonte
850,000
–
100,000
950,000
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
2,022,888
338,364
1,107,507
–
–
4,450,666
100,000
2,584,606 3,534,606
21
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REX MINERALS LTD
DIRECTORS’ REPORT (Continued) for the year ended 30 June 2019
REMUNERATION REPORT – AUDITED (CONTINUED)
Reconciliation of options and ordinary shares held by Key Management Personnel (KMP) (Continued)
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.
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 45 and forms part of the Directors’ Report for the year
ended 30 June 2019.
Dated at Melbourne this 12th day of September 2019.
Signed in accordance with a resolution of the Directors:
Mr Richard Laufmann
Chief Executive Officer
ANNUAL REPORT
2 0 1 9
22
REX MINERALS LTD
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As at 30 June
2019 2018
Note $000 $000
Current assets
Cash and cash equivalents 7 2,723 3,984
Trade and other receivables 38 247
Prepayments 35 35
Total current assets 2,796 4,266
Non-current assets
Exploration and evaluation expenditure 1,645 1,645
Property, plant and equipment 9 14,401 14,930
Water infrastructure 4,076 4,076
Total non-current assets 20,122 20,651
Total assets 22,918 24,917
Current liabilities
Trade and other payables 10 257 314
Employee benefits 11 633 512
Provisions 36 36
Total current liabilities 926 862
Non-current liabilities
Trade and other payables 10 – 348
Employee benefits 11 30 29
Total non-current liabilities 30 377
Total liabilities 956 1,239
Net assets 21,962 23,678
Equity
Issued capital 12(a) 196,269 192,910
Reserves 12(c) 360 399
Accumulated losses (174,667) (169,631)
Total equity 21,962 23,678
The notes on pages 27 to 43 are an integral part of these financial statements.
23
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REX MINERALS LTD
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND
OTHER COMPREHENSIVE INCOME
For the year ended 30 June
2019 2018
Note $000 $000
Finance income 98 60
Administrative expenses (1,247) (1,248)
Depreciation expense 9 (101) (163)
Employee benefits expense 13 (1,921) (2,178)
Marketing expenses (86) (76)
Exploration and evaluation (1,414) (1,551)
Loss on disposal of fixed assets (440) (1)
Loss before tax (5,111) (5,157)
Income tax benefit 14 – –
Total loss for the period after tax (5,111) (5,157)
Other comprehensive income – –
Total comprehensive loss attributable to members of Rex Minerals Ltd (5,111) (5,157)
Loss per share attributable to members of Rex Minerals Ltd
Basic loss per share (cents) 15 (1.80) (2.33)
Diluted loss per share (cents) 15 (1.80) (2.33)
The notes on pages 27 to 43 are an integral part of these financial statements.
ANNUAL REPORT
2 0 1 9
24
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 2018 192,910 399 (169,631) 23,678
Issue of ordinary shares 12(a) 3,560 – – 3,560
Transaction costs of share issue (201) – – (201)
Share based payments 12(c) – 36 – 36
Transfer from share based payments reserve – (75) 75 –
Total comprehensive loss for the period – – (5,111) (5,111)
Balance at 30 June 2019 196,269 360 (174,667) 21,962
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
The notes on pages 27 to 43 are an integral part of these financial statements.
25
1 9
REX MINERALS LTD
CONSOLIDATED STATEMENT OF CASH FLOWS
For the year ended 30 June
2019 2018
Note $000 $000
Cash flows from operating activities
Cash paid to suppliers and employees (3,302) (3,313)
Exploration and evaluation payments (1,386) (1,562)
Interest received 94 68
Net cash used in operating activities 16 (4,594) (4,807)
Cash flows from investing activities
Acquisition of property, plant and equipment 9 (12) (9)
Net cash used in investing activities (12) (9)
Cash flows from financing activities
Proceeds from issue of share capital 12 3,560 3,639
Payment of transaction costs (215) (279)
Net cash from financing activities 16 3,345 3,360
Net decrease in cash and cash equivalents (1,261) (1,456)
Cash and cash equivalents at beginning of the period 3,984 5,440
Cash and cash equivalents at period end 7 2,723 3,984
The notes on pages 27 to 43 are an integral part of these financial statements.
ANNUAL REPORT
2 0 1 9
26
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 6, 1 Collins Street, Melbourne, Victoria 3000. These consolidated financial statements
comprise the Company and its subsidiaries (together referred to as the ‘Group’). 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).
These consolidated financial statements were approved by the Board of Directors on 12 September 2019.
(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.
The Group has no debt obligations. The Group recorded a loss of $5.111 million, and net cash outflows from
operating and investing activities of $4.594 million for the year ended 30 June 2019. The Group’s position as at
30 June 2019 included available cash reserves of $2.723 million; and current assets of $2.796 million which
exceed current liabilities of $0.926 million by $1.870 million.
The Group’s principal objective is to create value through the discovery and development of mineral resources and
as such, it does not presently have a source of operating income, rather it is reliant on equity raisings or funds
from other external sources to fund its activities.
To support its planned activities, the Group will be required to raise additional funds over the next 12 months and
in the future. The Group has a history of successfully raising cash through equity raisings, including $7.012 million
in June/July 2018. The Directors reasonably expect that the Group will be able to raise funds as required, the
Group also has unencumbered land with a book value $14.110 million which could be made available for sale
or used as security for additional funds, if necessary.
The Directors are therefore of the opinion that the going concern basis is appropriate in the circumstances.
(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) Note 9
(cid:129) Note 17
(cid:129) Note 21
Recoverable value of non-current assets
Share based payments
Contingencies
27
1 9
REX MINERALS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
2. BASIS OF PREPARATION (CONTINUED)
(e) Changes in significant accounting policies
The Group adopted AASB 15 Revenue from Contracts with Customers and AASB 9 Financial Instruments
on 1 July 2018. Application of AASB 15 did not have a significant impact on the financial statements.
AASB 9 Financial Instruments
As at 1 July 2018, the Group reassessed the classification and measurement of financial assets and liabilities
based on the business model by which they are managed and their cash flow characteristics.
The following table explains the original categories under AASB 139 and the new categories under AASB 9
for each class of the Group’s financial assets and liabilities as at 1 July 2018. There was no impact on the
measurement of the Group’s financial assets and liabilities on transition to AASB 9.
Financial assets and liabilities Classification under AASB 9
Original classification under AASB 139
Cash and cash equivalents
Amortised cost loans and receivables Loans and receivables
Trade and other receivables
Amortised cost loans and receivables Loans and receivables
Trade and other payables
Amortised cost loans and receivables Loans and receivables
AASB 9 replaces the ‘incurred loss’ model in AASB 139 with an ‘expected credit loss’ (ECL) model. The new
impairment model applies to financial assets measured at amortised cost and in the Group’s case this includes
other receivables and cash and cash equivalents. Application of the ECL model did not have a significant impact
on the financial statements
3.
SIGNIFICANT ACCOUNTING POLICIES
The accounting policies set out below have been applied consistently to all periods presented in these Group
financial statements, except if mentioned otherwise (see Note 2(e)) 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.
(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.
(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.
ANNUAL REPORT
2 0 1 9
28
REX MINERALS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
3.
SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(b) Financial instruments
Policy applicable from 1 July 2018
All financial assets and liabilities are initially recognised at the fair value of consideration paid or received, net of
transaction costs as appropriate, and subsequently carried at fair value or amortised cost.
Financial assets are not reclassified subsequent to their initial recognition unless the Group changes its business
model for managing financial assets, in which case all affected financial assets are reclassified on the first day of
the first reporting period following the change in the business model.
A financial asset is measured at amortised cost if it meets both of the following conditions:
(cid:129)
it is held within a business model whose objective is to hold assets to collect contractual cash flows; and
(cid:129)
its contractual terms give rise on specified dates to cash flows that are solely payments of principal and
interest on the principal amount outstanding.
(i)
Receivables – other debtors
Other debtors are measured at amortised cost 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 uncollectible. An impairment allowance is raised for any doubtful accounts.
(ii) Cash and cash equivalents
Cash and cash equivalents comprise cash balances and call deposits with an original maturity of three
months or less.
(iii) 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.
Policy applicable before 1 July 2018
(iv) 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.
(v)
Share capital
Ordinary shares
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of ordinary
shares and share options are recognised as a deduction from equity, net of any tax effects.
(c)
Property, plant and equipment
(i) Recognition and measurement
Items of property, plant and equipment (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.
29
1 9
REX MINERALS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
3.
SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(c)
Property, plant and equipment (Continued)
(iii) Depreciation
Depreciation is recognised in 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
Buildings
3 – 10 years
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
Policy applicable from 1 July 2018
The Group recognises loss allowances for ECLs on financial assets measured at amortised cost. Loss
allowances for other receivables are always measured at an amount equal to lifetime ECLs.
Policy applicable before 1 July 2018
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.
(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.
ANNUAL REPORT
2 0 1 9
30
REX MINERALS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
3.
SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(ii) Non-financial assets (Continued)
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.
(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.
31
1 9
REX MINERALS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
3.
SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(h)
Tax (Continued)
(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.
(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.
ANNUAL REPORT
2 0 1 9
32
REX MINERALS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
3.
SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(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 2019, and have not been applied in preparing these consolidated financial statements:
(cid:129)
AASB 16 Leases removes the classification of leases as either operating or finance 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 new standard is not expected to have significant impact on the
financial statements.
4. DETERMINATION OF FAIR VALUES
A number of the Group’s accounting policies and disclosures require the determination of fair 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.
33
1 9
REX MINERALS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
5. FINANCIAL RISK MANAGEMENT (CONTINUED)
(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.
6. SEGMENT REPORTING
The consolidated entity operated in one geographical segment at 30 June 2019, being South Australia and
one industry, minerals mining and exploration.
7. CASH AND CASH EQUIVALENTS
2019 2018
$000 $000
Bank balances and short-term deposits 2,723 3,984
Cash and cash equivalents 2,723 3,984
The Group’s total cash and funds on deposit of $2.723 million (2018: $3.984 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)
2019 2018
$000 $000
Exploration and evaluation assets (494) (494)
Property, plant and equipment (83) (101)
Provisions 208 161
Equity costs 101 71
Net DTA/(DTL) (268) (363)
Tax losses recognised to the extent of the DTL 268 363
– –
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 $54.715 million (2018: $53.144 million).
ANNUAL REPORT
2 0 1 9
34
REX MINERALS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
9. PROPERTY, PLANT AND EQUIPMENT
Land and Plant and
buildings equipment Total
2019 $000 $000 $000
Cost
Balance at 1 July 2018 15,074 2,127 17,201
Additions – 12 12
Disposals (765) (181) (946)
Balance at 30 June 2019 14,309 1,958 16,267
Depreciation and impairment losses
Balance at 1 July 2018 404 1,867 2,271
Depreciation 36 65 101
Disposals (368) (138) (506)
Balance at 30 June 2019 72 1,794 1,866
Carrying amounts
At 1 July 2018 14,670 260 14,930
At 30 June 2019 14,237 164 14,401
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
10. TRADE AND OTHER PAYABLES
2019 2018
$000 $000
Current
Trade payables 9 15
Accrued expenses 248 299
Total current trade and other payables 257 314
Non-current
Accrued expenses – lease incentive – 348
Total non-current trade and other payables – 348
Total trade and other payables 257 662
35
1 9
REX MINERALS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
11. EMPLOYEE BENEFITS PROVISIONS
2019 2018
$000 $000
Current
Annual leave 462 369
Long service leave 171 143
Total current employee benefits provisions 633 512
Non-current
Long service leave 30 29
Total non-current employee benefits provisions 30 29
Total employee benefits provisions 663 541
12. EQUITY
(a) Movements in shares on issue:
Date of Number of Issue
issue shares price $ $000
Opening balance at 1 July 2018 253,597,684 192,910
Capital raising – Placement 25/07/2018 30,660,548 0.110 3,373
Less costs of placement (201)
Exercise of options 22/08/2018 1,975,983 0.063 124
Exercise of options 07/12/2018 1,000,000 0.063 63
Closing balance at 30 June 2019 287,234,215 196,269
Opening balance at 1 July 2017 220,519,784 189,566
Capital raising – Placement 18/06/2018 33,077,900 0.110 3,639
Less costs of placement (295)
Closing balance at 30 June 2018 253,597,684 192,910
(b) Movements in options on issue:
Date of Number of Exercise Expiry
issue options price $ date
Opening balance as at 1 July 2018 16,800,000
Exercise of options 22/12/2015 (1,975,983) 0.063 30/11/2019
Exercise of options 22/12/2015 (1,000,000) 0.063 30/11/2019
Issue of options 14/02/2019 2,000,000 0.084 31/01/2023
Closing balance as at 30 June 2019 15,824,017
Opening balance as at 1 July 2017 16,800,000
Closing balance as at 30 June 2018 16,800,000
ANNUAL REPORT
2 0 1 9
36
REX MINERALS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
12. EQUITY
(c) Movements in share based payment reserve:
$000
Opening balance at 1 July 2018 399
Share based payments 36
Transfer from share based payments (75)
Closing balance at 30 June 2019 360
Opening balance at 1 July 2017 319
Share based payments 80
Closing balance at 30 June 2018 399
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.
13. EMPLOYEE BENEFITS EXPENSE
2019 2018
$000 $000
Wages and salaries 1,770 2,027
Share based payments 29 56
Increase/(decrease) in liability for annual leave 93 71
Increase/(decrease) in liability for long service leave 29 24
Total employee benefits expense 1,921 2,178
14. INCOME TAX BENEFIT
NUMERICAL RECONCILIATION BETWEEN TAX BENEFIT AND PRE-TAX ACCOUNTING LOSS
2019 2018
$000 $000
Loss before tax for the period (5,111) (5,157)
Income tax benefit using the corporation tax rate of 30% (2018: 30%) (1,533) (1,547)
Non-deductible expenses (6) 26
Other non-temporary differences 44 (89)
Net effect of tax losses not recognised 1,495 1,610
Total income tax expense/(benefit) on pre-tax net loss – –
37
REX MINERALS LTD
1 9
15. LOSS PER SHARE
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
2019 2018
cents cents
Loss per share
Basic loss per share (1.80) (2.33)
Diluted loss per share (1.80) (2.33)
(a) Basic loss per share
The calculation of basic loss per share at 30 June 2019 was based on the loss attributable to ordinary
equity holders of $5.111 million (2018: $5.157 million) and a weighted average number of ordinary shares
outstanding during the financial year ended 30 June 2019 of 284,493,544 (2018: 221,610,264).
(b) Diluted loss per share
The calculation of diluted loss per share at 30 June 2019 is the same as basic loss per share. In accordance
with AASB 133 Earnings 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 15,824,017 at 30 June 2019.
16. RECONCILIATION OF CASH FLOWS FROM OPERATING AND FINANCING ACTIVITIES
2019 2018
Note $000 $000
Cash flows from operating activities
Loss before tax for the period (5,111) (5,157)
Adjustments for non-cash items:
Depreciation 9 101 163
Share based payments 12(c) 36 80
Adjustments for other items:
Loss on disposal of property plant and equipment 440 1
Operating loss before changes in working capital and provisions (4,534) (4,913)
(Increase)/decrease in trade and other receivables 208 49
(Decrease)/increase in trade and other payables (390) (37)
(Decrease)/increase in employee benefits 122 94
Net cash used in operating activities (4,594) (4,807)
Cash flows from financing activities
Issue of share capital
Proceeds from share issue 12(a) 3,560 3,639
Transactions costs of share issue (201) (295)
Share capital before changes in working capital 3,359 3,344
(Decrease)/increase in trade and other payables (14) 16
Net cash used in financing activities 3,345 3,360
ANNUAL REPORT
2 0 1 9
38
REX MINERALS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
17. SHARE BASED PAYMENTS
(a) Description of share based payment arrangements
During the financial year ending 30 June 2019, two million options were granted to Directors on
14 February 2019, expiring 31 January 2023. Options are exercisable at a price of 8.4 cents each
and options will vest in three equal tranches as follows:
(cid:129) Tranche 1 – one third vest on 31 January 2020
(cid:129) Tranche 2 – one third vest on 31 January 2021
(cid:129) Tranche 3 – one third vest on 31 January 2022
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 Option Incentive Plan.
(b)
Option expense
2019 2018
$000 $000
Option expense 36 80
Total recognised as share based payments 36 80
(c)
Outstanding options
At 30 June 2019, there were 15,824,017 unlisted options outstanding, 13,824,017 at an exercise price
of 6.3 cents expiring 30 November 2019 and 2,000,000 at an exercise price of 8.4 cents, expiring
31 January 2023.
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
2019
Trade and other payables 257 (257) (257) –
257 (257) (257) –
2018
Trade and other payables 662 (314) (314) (348)
662 (314) (314) (348)
39
1 9
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:
2019 2018
$000 $000
Cash and cash equivalents 2,723 3,984
Total cash and cash equivalents 2,723 3,984
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 2019, if interest rates had moved, as illustrated in the table below, with all other variables
constant, profit or loss and equity would have been affected as follows:
Profit or loss Equity
higher/(lower) higher/(lower)
2019 2018 2019 2018
$000 $000 $000 $000
Group
+1% (100 basis points) 27 40 – –
– 1% (100 basis points) (27) (40) – –
The movements in profit or loss are due to higher/lower interest earnings on cash balances. 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 (2018: 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:
2019 2018
$000 $000
Not later than one year – 415
Later than one year but not later than five years – 1,749
Greater than five years – 268
In 2019, the Group fully assigned its Adelaide leased office space and as a result no longer has any operating
lease commitments.
During the year, an amount of $0.096 million was recognised as an expense in profit and loss in respect of the
office lease (2018: $0.432 million).
ANNUAL REPORT
2 0 1 9
40
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.
2019 2018
$000 $000
Not later than one year 3,066 1,956
Later than one year but not later than five years 130 1,681
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 2019 (2018: $0.020 million).
The Group’s bankers are no longer required to provide a guarantee regarding office operating leases as security
over the Group’s obligations regarding the leases held. The Group has been fully released from its obligations and
as such the guarantee has been cancelled and is no longer supported by a cash deposit (2018: $0.199 million).
22. RELATED PARTIES
(a) Parent and ultimate controlling party
Country of
Ownership Interest
Incorporation 2019 2018
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%
41
1 9
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 2019.
(ii) KMP compensation
KMP compensation comprised the following:
2019 2018
$ $
Short-term benefits 953,365 1,027,959
Post-employment benefits 48,756 62,462
Share based payments 19,264 43,103
Other long-term benefits 9,901 (130)
1,031,286 1,133,394
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 16 to 22.
There have been no changes to KMP between 1 July 2019 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 16 to 22.
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
2019 2018 2019 2018
Transaction $ $ $ $
Geological and IT Services 1 134,283 140,000 5,550 10,000
1 During the year, geological and IT 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 9
42
REX MINERALS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
23. PARENT ENTITY DISCLOSURES
As at, and throughout, the period ending 30 June 2019, the parent company of the Group was Rex Minerals Ltd.
2019 2018
$000 $000
Result of the parent entity
Loss for the period (4,968) (5,082)
Other comprehensive income – –
Total comprehensive loss for the period (4,968) (5,082)
Financial position of the parent entity at year end
Current assets 2,796 4,266
Total assets 16,922 18,854
Current liabilities 782 651
Total liabilities 812 1,171
Total equity of the parent entity comprising of
Share capital 196,269 192,910
Share based payments reserve 360 399
Accumulated losses (180,519) (175,626)
Total equity 16,110 17,683
Parent entity contingencies
The Parent entity’s contingencies are the same as the Group’s contingencies as detailed in Note 21.
24. SUBSEQUENT EVENTS
Rex announced on 20 August 2019 completion of the acquisition of Hog Ranch Group Pty Ltd and has issued
9,353,849 fully paid ordinary shares as consideration to the vendors other than the CEO. The consideration to be
issued to the CEO, together with the Hog Ranch Consideration Rights, are subject to shareholder approval at the
upcoming AGM to be held in November 2019.
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
2019 2018
KPMG Australia $ $
Audit services 48,128 48,175
Other services – –
No non-audit services were provided in the current year.
43
REX MINERALS LTD
DIRECTORS’ DECLARATION
1 9
(a)
1.
2.
3.
In the opinion of the Directors of Rex Minerals Ltd (the Company):
the consolidated financial statements and notes and the Remuneration Report in the Directors’ Report, set
out on pages 16 to 22, 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 2019 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.
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 2019.
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 12th day of September 2019.
ANNUAL REPORT
2 0 1 9
44
Lead Auditor’s Independence Dec
Section 307C of the Corporations
laration under
Act 2001
To the Directors of Rex Minerals Limited
I declare that, to the best of my knowledge and belief, in relation to the
the financial year ended 30 June 2019 there have been:
e audit of Rex Minerals Limited for
i.
ii.
KPMG
no contraventions of the auditor independence require
C rp raations Act 2001 in relation to the audit; and
por
or
ements as set out in the
no contraventions of any applicable code of professio
nal conduct in relation to the audit.
Paul Cenko
Partner
Adelaide
12 September 2019
partnership and a member firm of the KPMG
KPMG, an Australian
network of independe
International Coopera
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).
i
al
Fi
In our opinion, the accompanying Financial
Report of the Company is in accordance
with the C rp raations Act 2001, including:
por
or
t
(cid:1) giving a true and fair view of the
Group's financial position as at 30 June
2019 and of its financial performance
for the year ended on that date; and
(cid:1)
complying with Austraaliaan Accounting
Staand rdds
t
the Corp raations
r
por
R
egul
ar
and
laations 2001.
r
i
B
orfsisa
opi
onni
The Financial Report comprises:
(cid:1) Consolidated staatem t of fiinanciaal position as a
ent
t
f
l
i
t 30 June
2019;
(cid:1) Consolidated
ent
loss a
statem t of pr fiit
tof
comprehensive income, Consolidated staatem t o
ent
in equity,, and Consolidated staatement of caash fllow
f
y
year then ended;
or
r
t
c
t
f
and other
fof changes
ws for the
(cid:1) Notes including a summary of significant accountin
g policies;
and
(cid:1) Directorss' De laraation.
arcl
r
The Group consists of the Rex Minerals Limited (the C
and the entities it controlled at the year-end or from tim
during the financial year.
Company)
me to time
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 aud
ur opinion.
t
r
i
dit evidence
Our responsibilities under those standards are further described in the
the Financiaal Report section of our report.
i
Auditor’s responsibilities foor
f
the audit of
We are independent of the Group in accordance with the C rp raations
s Act 2001 and the ethical req
of the Accounting Profeessional and Ethicaal Staandardds Boardd’s APE
f Ethics for P
S 110 C
S
Accountants (the Code) that are relevant to our audit of the Financial R
Report in Australia. We have f
other ethical responsibilities in accordance with the Code.
ode of
or
r
por
lc
or
f
r
t
f
l
quirements
Pr feessional
fulfilled our
of
K
sertatMtiduAey
The Keey Audiitt M ttt rss we identified are:
er
at
id
K
(cid:1)
(cid:1)
Going concern basis of accounting; and
Recoverable value of non-current assets.
KKeey Aud
professio
significan
the curre
judgement, were
ertMtiddiitt Maatterss are those matters
onal
nce in our audit of the Financia
nt period.
that, in our
of most
al Report of
These m
our audit
in formin
provide a
atters were addressed in the
of the Financial Report as a
ng our opinion thereon, and
separate opinion on these m
e context of
whole, and
we do not
atters.
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
Professional Standards Legislation.
d under
ccaofsisban reconcg noiG
ount
gni
Refer to Note 2(b) to the Financial Repor
ort
The key audit matter
the going conc
The Group’s use of
oncern basis of
accounting and the associated extent o
of uncertainty is a
key audit matter due to the high lev
vel of judgement
required by us in evaluating the Group’
p’s assessment of
going concern and the events or conditi
ons that may cast
significant doubt on their ability to cont
ntinue as a going
concern. These are outlined in Note 2(b)
b).
The Directors have determined that the
e use of the going
concern basis of accounting is approp
priate in preparing
the financial report. Their assessment
of going concern
was based on cash flow projections. The pr
The preparation of
these projections incorporated a numbe
er of assumptions
e Directors have
judgements, and the
and significant
ssible outcomes
range of pos
the
concluded
ent does not give
considered in arriving at this judgement
gnificant doubt on
rise to a material uncertainty casting signi
ng concern.
the Group’s ability to continue as a going
We critically assessed the levels of uncertainty, as it
related to the Group’s ability to continue as a going
concern, within these assumptions and judgements,
focusing on the following:
that
(cid:1)
(cid:1)
(cid:1)
the Group’s planned levels of operational and capital
expenditure, and the ability of the Group to manage
cash outflows.
the Group’s ability to raise additional funds from
shareholders or other parties and the projected
timing thereof This included source of funds and
timing thereof. This included source of funds and
feasibility of securing those funds; and
the Group’s ability to divest land or utilise the land as
security to raise additional funds if necessary. This
included
timing and
quantum of potential proceeds.
feasibility, projected
the
In assessing this key audit matter, we involved senior
audit team members who understand the Group’s
business, industry and the economic environment it
operates in.
How the matter was addressed in our audit
Our procedures included:
(cid:1) We analysed the cash flow projections by:
- Evaluating the underlying data used to
generate the projections. We specifically
looked for
their consistency with the
Group’s intentions, as outlined in Directors
minutes and their comparability to past
practices;
- Assessing the planned levels of operating
and capital expenditures for consistency of
relationships and trends to the Group’s
historical results and our understanding of
the business,
industry and economic
conditions of the Group;
i
t
f
f
ti
to
d ti
ibilit
ability
the Group’s
- We assessed the Group’s ability to raise
additional funds from shareholders or other
pa
arties for feasibility, quantum and timing,
an
nd their impact to going concern. We
re
ead Directors minutes to understand and
as
raise
ssess
ad
dditional shareholder funds. We used our
kn
nowledge of the client, its historical ability
to
o raise funds, its industry and status to
as
ssess the level of associated uncertainty.
- W
We assessed the Group’s ability to divest
lan
nd or utilise the land as security to raise
d
dditional funds, if necessary.
ad
- W
We evaluated the Group’s going concern
sclosures
in the financial report by
di
omparing them to our understanding of
co
e matter, the events or conditions
th
corporated into the cash flow projection
in
ssessment, the Group’s plans to address
as
ose events or conditions, and accounting
th
andard requirements.
st
veroecR
lab
e
astenrruc-nonfoeuval
sets
Property, plant and equipment $14.401
Water infrastructure $4.076m
Exploration and evaluation expenditure
Collectively referred to as ‘non-current
$1.645m
assets’.
m – Note 9
The key audit matter
How the matter was addressed in our audit
The Group's recoverable value of non-
based on either the successful deve
Hillside project or sale of the non-cur
recoverable value of non-current asse
matter due to:
(cid:1) Significance of the balances to
statements, being 88% of total ass
The need for management to
appropriate basis of assessing re
which can be either:
- A 'value in use' assessment
(cid:1)
judgement
significant
in de
recoverable value of the Hillside
the use of a feasibility model
sensitive to changes in assump
- A 'fair value' assessment whic
data sourced from third partie
comparable transactions which
number and frequency.
For the year ended 30 June 2019, a fa
been adopted to determine the recove
non-current assets.
current assets is
elopment of the
rent assets. The
ets is a key audit
the financial
sets; and
determine the
ecoverable value
which requires
etermining
the
e project due to
which is highly
ptions; or
ch is based on
s in relation to
h are limited in
air value basis has
erable value of the
Our procedures included:
(cid:1) Assessing
the
the appropriateness
methodology used to determine the value of
assets with
to Australian
reference
Accounting standards.
of
(cid:1) Checking the Group's assessment of the fair
value of property, plant and equipment to data
sourced by the Group from an external valuer.
competence and
objectivity of the Group's external valuers by
gaining an understanding of their experience
and qualifications.
(cid:1) Assessing
the scope,
(cid:1) Checking the Group's assessment of fair value
as
the undeveloped ore
resources
of
performed by the Directors.
(cid:1) Evaluating
the scope,
competence and
objectivity of the Group's internal experts who
produced the Resource Statement utilised
undeveloped
within
resources.
valuation
the
of
(cid:1) Obtaining details of comparable transactions
the sale of undeveloped ore
involving
resources from our valuation specialists to
h
i f
G
f
he Group's
th
inform our assessment of
urces.
valuation of undeveloped ore resou
(cid:1) Assessing the Group's disclosure
against the
requirements of Australian
Accounting
Standards.
'
O
onitamornfIr eth
Other Information is financial and non-financial information in Rex Minerals Limited’s annual reportin
provided in addition to the Financial Report and the Auditor’s Report. The Directors are responsible fo
Information.
ng which is
or the Other
Our opinion on the Financial Report does not cover the Other Information and, accordingly, we do n
an audit opinion or any form of assurance conclusion thereon, with the exception of the Remunera
and our related assurance opinion.
not express
tion Report
In connection with our audit of the Financial Report, our responsibility is to read the Other Informatio
so, we consider whether the Other Information is materially inconsistent with the Financial Re
knowledge obtained in the audit, or otherwise appears to be materially misstated.
on. In doing
port or our
We are required to report if we conclude that there is a material misstatement of this Other Inform
based on the work we have performed on the Other Information that we obtained prior to the d
Auditor’s Report we have nothing to report.
mation, and
date of this
tocreiDethfoesitilibisnopesR
rs
htorf
he
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 Corporaations Act 2001
2001;
ardt
r
r
i
implementing necessary internal cont
fair view and is free from material mis
trol to enable the preparation of a Financial Report that gives a true and
sstatement, whether due to fraud or error; and
assessing the Group and Company's a
concern basis of accounting is approp
concern and using the going concern ba
and Company or to cease operations,
ability to continue as a going concern and whether the use of the going
priate. This includes disclosing, as applicable, matters related to going
n basis of accounting unless they either intend to liquidate the Group
, or have no realistic alternative but to do so.
A
tidaue htrofesitilibisnopsers’rotidu
t
troepRlaicnanFie htfo
Our objective is:
(cid:1)
(cid:1)
to obtain reasonable assurance abou
misstatement, whether due to fraud
out whether the Financial Report as a whole is free from material
or error; and
to issue an Auditor’s Report that includes
udes our opinion.
Reasonable assurance is a high level of as
with Austraaliaan Auditing Staandardds will alw
ssurance, but is not a guarantee that an audit conducted in accordance
ways detect a material misstatement when it exists.
r
r
t
i
Misstatements can arise from fraud or er
they could reasonably be expected to inf
Financial Report.
rror. They are considered material if, individually or in the aggregate,
nfluence the economic decisions of users taken on the basis of the
A further description of our responsibilities
Assuraan e Standaardds Boardd website a
description forms part of our Auditor’s Repor
es for the audit of the Financial Report is located at the Auditing and
at: http:///wwww.auasb.gov.au/auditors_responsibilities/ar1.pdf. This
eport.
rd
ce
//
r
r
R
e
tpor
itarunemeRheton
eRon
tpor
Opinion
Directors’ responsibilities
In our opinion, the Remuneration Report of
Rex Minerals Limited for the year ended 30
June 2019, complies with Section 300A of
the C rp raations Act 2001.
por
or
The Directors of
the Company are responsible
preparation and presentation of the Remuneration
accordance with Section 300A of the C rp raations A
e for
the
Report in
Act 2001.
por
or
Our responsibilities
We have audited the Remuneration Report included
ors report for the year ended
16 to 22 of the Directo
16 to 22 of the Directors’ report for the year ended
2019.
d in pages
d 30 June
responsibility
Our
is
Remuneration Report,
accordance with Austraa
r
to express
an opinion
based on our audit cond
ialiaan Auditing Staa daardds.
rndt
on
the
ducted in
KPMG
kClP
Paul Cenko
Partner
Adelaide
12 September 2019
REX MINERALS LTD
ADDITIONAL SHAREHOLDER INFORMATION
1 9
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 2019.
Distribution of ordinary shares
The number of shareholders, by size of holding:
Total % of
Range Holders Units Issued Capital
1 – 1,000 634 274,591 0.10
1,001 – 5,000 1,125 3,193,320 1.11
5,001 – 10,000 649 5,167,901 1.80
10,001 – 100,000 1,334 50,098,853 17.44
100,001 – 999,999,999 423 228,499,550 79.55
Total
4,165 287,234,215 100.00
The number of shareholders holding less than
a marketable parcel: 2,060
Twenty largest shareholders
The names of the twenty largest shareholdings of quoted ordinary shares are:
Number of % of
Name Shares Held Issued Capital
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
Grand South Development Limited 14,653,777 5.10
BNP Paribas Noms Pty Ltd (DRP) 8,628,815 3.00
United Overseas Service Management Ltd 8,606,571 3.00
S & S Olsen Pty Ltd 5,752,000 2.00
Greenstone Property Pty Ltd (Titeline Property A/C) 5,345,531 1.86
Stone Poneys Nominees Pty Ltd (Chapman Super Fund A/C) 4,007,833 1.40
Panjeta Investment Group Pty Ltd 4,000,000 1.39
Mrs Vickie Jane Jones 3,750,157 1.31
Mrs Natalie Laufmann 3,500,000 1.22
Dr Susan Jane Winspear & Mr Timothy Charles Winspear
(James S/F A/C) 3,500,000 1.22
HSBC Custody Nominees (Australia) 2,904,532 1.01
11.
12.
Dr Steven G Rodwell 2,664,240 0.93
13. Mr Elliott Grant Wylie 2,600,000 0.91
Mr Paul Christopher Walker 2,188,976 0.76
14
ZW 2 Pty Ltd 2,150,000 0.75
15.
16. Ms Fei Chen 2,106,200 0.73
Program Images Pty Ltd (The Carland Super fund A/C) 2,022,888 0.70
17.
BNP Paribas Noms Pty Ltd (UOB KH P/L AC UOB KH DRP) 1,916,979 0.67
18.
HSBC Custody Nominees (Australia) 1,906,071 0.66
19.
BNP Paribas Nominees Pty Ltd (IB AU Noms Retailclient DRP) 1,863,785 0.65
20.
Total
84,068,355 29.27
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 5.10
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 9
50
REX MINERALS LTD
NOTES for the year ended 30 June 2019
51
REX MINERALS LTD
NOTES for the year ended 30 June 2019
1 9
ANNUAL REPORT
2 0 1 9
52
A B N 1 2 1 2 4 9 6 0 5 2 3
Designed and Produced by
Celtink Creative info@celtink.com
ANNUAL REPORT
20
19
STAY IN TOUCH
A Level 6, 1 Collins Street
Melbourne, Victoria 3000
T +61 (0) 8 8299 7100
P PO Box 3435
Rundle Mall, South Australia 5000
E rex@rexminerals.com.au
W www.rexminerals.com.au
ABN 12 124 960 523