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Rex Minerals Limited

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FY2021 Annual Report · Rex Minerals Limited
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COPPER SA   I   GOLD NEVADA

A B N 12 124 960 523

ANNUAL REPORT

A B N  1 2   1 2 4   9 6 0   5 2 3

ANNUAL REPORT

CORPORATE DIRECTORY

DIRECTORS
Mr Ian Smith (Non-Executive Chairman)
Mr Richard Laufmann (CEO and Managing Director)
Ms Amber Rivamonte (Executive Director) 
Mr Ron Douglas (Non-Executive Director)
Mr Greg Robinson (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
68 St Vincent Highway
Pine Point, South Australia 5571

CONTACT DETAILS
Rex Minerals Ltd
PO Box 3435
Rundle Mall, South Australia 5000
Telephone:  1300 822 161 (Australia)
Telephone:  +61 3 9068 3077 (International)
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 22, 35 Collins Street
Melbourne, Victoria 3000

LEGAL ADVISORS
Baker McKenzie
Level 19, 181 William Street
Melbourne, Victoria 3000

HILLSIDE
SOUTH AUSTRALIA

 
ANNUAL REPORT 30 JUNE

TABLE OF CONTENTS

LETTER FROM THE CHAIRMAN AND THE CHIEF EXECUTIVE OFFICER

REVIEW OF OPERATIONS

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

3-12

13-25

27

28

29

30

31-47

48

49

50-52

54

A B N 12 124 960 523

1

REX MINERALS LTD

LETTER FROM THE CHAIRMAN AND
THE CHIEF EXECUTIVE OFFICER

A

B

N 12 124 960 523

Dear Fellow Shareholder,

The past year has seen a turning point for the Company – and we expect momentum to
accelerate over the coming 12 months.

Let us reflect on some key achievements:

T 1300 822 161 (Australia)
T +61 3 9068 3077 (International)
P PO Box 3435  Rundle Mall  

South Australia 5000
E rex@rexminerals.com.au
W www.rexminerals.com.au 

(cid:129) At Hillside, we nearly doubled the Ore Reserves, from 500,000 to 1 million tonnes

of copper;

(cid:129) At Hog Ranch, we grew the Mineral Resources from 1.4 to 2.2 million ounces of gold; and

(cid:129) We now have more cash at bank than the entire market capitalisation of the Company

12 months ago.

Rex owns a very significant copper-gold development in South Australia and an emerging gold
project in Nevada. Both are company-making assets.

Our ongoing drive to evolve, progress and adapt will lead to continued optimisation of the
Company’s vision, purpose and associated capabilities.

The vision now acknowledges the significant role of copper as a critical mineral in the global
shift towards new technologies required for a low-carbon economy. This will be driven by a
renewed purpose.  

Underpinned by our values, the Company’s commitment to people, communities and the
environment will continue to demonstrate the ethical and transparent way we do business.

The solution to the challenge of climate change relies heavily on increased electrification which will
increase greatly the demand for copper. Such metals are strategically crucial. Our Hillside Project
will aid a better future.

Regarding COVID-19, the mining industry has been at the forefront in demonstrating how things
can progress even as restrictions place added burdens and challenges. Our team is well versed in
operating in such an environment. 

For Rex, our objectives for the next year are clear. Build our team, begin pre-development and
finalise financing of the Hillside Project, and continue to reveal the value of Hog Ranch.

Our most sincere thanks go to the retiring directors for their contribution to the journey and the
management who have steered a path for the Company. 

We are sincerely grateful to all investors who have demonstrated vital support thus far. Now it is
time to deliver the next tier of progress for Rex as we optimise the value that can be brought to all
our communities and stakeholders.

Yours sincerely,

Mr Ian Smith
Chairman

Mr Richard Laufmann
Chief Executive Officer

 
REX MINERALS LTD

REVIEW OF OPERATIONS for the year ended 30 June 2021

CORPORATE

Rex Minerals Ltd (Rex or the Company) is an investment in copper and gold in two world-class locations. The Hillside
Copper-Gold Project (Hillside) and the Hog Ranch Gold Property (Hog Ranch) are each significant assets in their own
right. They are underpinned by a strong demand outlook and healthy commodity price forecasts.  

In an extended, and perhaps heightened period of ongoing uncertainty, the COVID-19 disruption has been severe and
without doubt, continues to reshape the future. Global travel remains unlikely, and domestically, interstate travel has not
opened up as hoped and continues to hamper our capacity to execute our work plans. Despite the challenges, Rex has been
active and maintained our field program at Hog Ranch, significantly improved the metrics at Hillside and rebuilt the
Board to drive the Company into its next and defining phase of development.

This year has been significant for the Company with achievement of the following milestones.

SHARE PRICE CHART 1

e
r
a
h
s

r
e
p
$
A

0.50 

0.45 

0.40 

0.35 

0.30 

0.25 

0.20 

0.15 

0.10 

0.05 

- 

30 Apr 2021
March 2021
Quarterly Report

+278%1

5 Nov 2020
Geophysics identifies
high-grade targets at
Hog Ranch

22 Apr 2021
Rex back drilling
at Hog Ranch

16 Apr 2021
Rex raises A$9.5M

21 Dec 2020
Hog Ranch gold
results & big hits
at Krista

24 Jul 2020
SA Gov approves
Hillside PEPR

28 Jul 2020
Hillside feasibility
costing update

19 Oct 2020
Hog Ranch
drilling results
at Bells

3 Sep 2020
Rex raises
A$10.0M

23 Mar 2021
Hog Ranch gold
Resource increases from
1.4Moz to 2.3Moz3

25 May 2021
Rex repays
loan facility

20 Jul
2021
Hillside
Ore Reserve
approx.
doubled3

1 Jun 2021
Board succession
to lead company
into new era

3 Aug 2021
Rex raises
A $50.0M4

Jun 2020 

Sep 2020 

Dec 2020 

Mar 2021 

Jun 2021 

KEY MILESTONES1

3    SA government approval of Hillside PEPR2                             July 2020

3    Hillside feasibility costing update                                            July 2020

3    $10M placement completed                                                    September 2020

3    Successful drilling results at Bells                                           October 2020

3    High-grade discovery at Krista                                                December 2020

3    SA Mining Act amendments Bill gazetted                                January 2021

3    Hog Ranch Mineral Resources upgrade3                                  March 2021

3    $9.5M placement completed                                                   April 2021

3    Loan facility fully repaid                                                         May 2021

3    Board succession plan completed                                            June 2021

3    Hillside Ore Reserves doubled to 988kt3                                  July 2021

3    $50M placement launched4                                                     August 2021

1 From 30 June 2020 to 19 August 2021. 
2 Program for Environment Protection and Rehabilitation.
3 Refer ASX Release – Hog Ranch Gold Resource increases to 2.2Moz dated 23 March 2021; Rex doubles Hillside Ore Reserves dated 20 July 2021.
4 Subject to completion of Tranche 2 which requires Rex shareholder approval at a General Meeting to be held in September 2021. 

3

 
 
 
REX MINERALS LTD

REVIEW OF OPERATIONS (Continued) for the year ended 30 June 2021

CORPORATE (CONTINUED)

The milestones (shown on Page 3), including repayment of the Company’s $4.4 million loan facility, were achieved
using the funds raised from two important capital raisings. A placement of $10 million, followed by a share purchase
plan raising $0.87 million, completed in September 2020, and an additional $9.5 million in April 2021, placed to a
handful of supportive institutions.  

Designed to drive the Company into its next phase of development, the Board succession plan was finalised on
1 June 2021 and comprised the following changes:

(cid:129)

Ian Smith assumed the role of Non-Executive Chairman;

(cid:129) Greg Robinson was appointed as a Non-Executive Director and Chairman of the Audit Committee; 

(cid:129) Amber Rivamonte was appointed to the Board as Executive Director of Finance;

(cid:129) Ron Douglas assumed the role of Chairman of the Remuneration Committee; and

(cid:129) Chairman of seven years, David Carland, and Non-Executive Director for nine years, Alister Maitland, retired from
the Board. These followed the earlier retirement of Non-Executive Director, Mitchell Hooke, on 20 October 2020.

On 4 August 2021, the Company launched a $50 million two tranche placement. Tranche 1 raised $5.3 million and settled
on 10 August 2021 with Tranche 2, subject to shareholder approval at a General Meeting to be held on 14 September
2021, to raise a further $44.7 million. The placement received strong support from existing institutional, professional and
sophisticated shareholders as well as new institutional investors who were introduced to the Company’s share register. 

Proceeds from the $50 million placement will principally be used to fund Hillside pre-development activities including
expanding the Project delivery team, commencing early site works and progressing financing workstreams. Rex is targeting
a final investment decision (FID) for Stage 1 of Hillside in 4Q CY22 (see Figure 1), which is expected to coincide with a
tightening copper market.

PRELIMINARY WORK

COMMENCEMENT OF OPERATIONS

2H CY21

1H CY22

2H CY22

1H CY23

2H CY23

1H CY24

2H CY24

Road Realignment Works

Environmental Works

Electrical Infrastructure
Works

Water Infrastructure
Works

Surface Civil Works

Plant Construction

Mining Works

FID
Target

Equity
Raising

Funding workstreams to be
progressed in parallel with
pre-development activities

Figure 1: Hillside Stage 1 indicative development schedule.
Note: Schedule is indicative only and is subject to change.

ANNUAL REPORT

2 0 2 1

4

REX MINERALS LTD

REVIEW OF OPERATIONS (Continued) for the year ended 30 June 2021

CORPORATE (CONTINUED)

Vision, purpose, values

The Company’s transition to the next phase of development also encouraged it to review its vision, purpose and values,
described further below. This transition also led the Company to revise its governance framework to include new policies
on sustainable development; gender, diversity and inclusion; and people and culture in addition to its existing policy suite
(refer below Sustainable development).  

The Company’s vision acknowledges the significant role of copper as a critical mineral in the global shift towards new
technologies required for a low-carbon economy. Our vision is to ‘produce the minerals needed for the world we all
envision.’ The Company’s purpose sets out how it aims to realise its vision: ‘explore and mine responsibly to benefit our
stakeholders and contribute to a more sustainable world.’ 

The vision and purpose are underpinned by the Company’s values of responsibility, teamwork, respect, integrity and
growth. These values reflect the Company’s commitment to the people, communities and environment associated with its
activities, the ethical and transparent way it does business and the sustainable and positive impact it strives for. 

It is expected that the mission, purpose and values, will guide the Company’s progress, be the reference point
for decision making and will inspire the Company’s people as it transitions to the next stage of development.

Sustainable development

From the commencement of the Company’s presence on the Yorke Peninsula in South Australia, location of Hillside, Rex
has worked to understand the issues of importance to the local community and region more broadly, and to design Hillside
to protect and promote those environment, social and economic values. The same approach is being taken at Hog Ranch in
Nevada also.

To that end, a significant milestone was achieved during the year when the South Australian Government approved the
Program for Environment Protection and Rehabilitation (PEPR) for Hillside. The PEPR sets out how the Project will
mitigate its environmental and social impacts and manage development and operation of Hillside to achieve the outcomes
sought by the Company and its stakeholders. This approval was the satisfying result of extensive design and feasibility
optimisation, technical studies and approximately 600 separate stakeholder engagements regarding Hillside. 

In moving into the next phase of development, and also considering Hog Ranch, the Company is progressing its strategy
for sustainable development. It includes: 

(cid:129)

health and safety as its top priority;

(cid:129) managing its material risks to, and impacts on, people and the environment;

(cid:129)

(cid:129)

valuing diversity and promoting inclusivity; and 

supporting communities, where it operates, to build resilience and thrive.

This strategy recognises the strong and experienced leadership of the Board and management team in Environmental,
Social and Governance (ESG) risk management. They are supported by a governance framework that was strengthened
during the year with the addition of new policies – on sustainable development, gender, diversity and inclusion, and people
and culture – and revision of existing policies, to reflect the Company’s ambition, progress and contribution to a greener,
more inclusive and equitable global future.

Stakeholder expectations of mining companies’ ESG performance and the material landscape are evolving at an
unprecedented rate. As a junior explorer and developer, Rex continues to navigate this landscape, identifying, assessing
and mitigating risks to its business and responding to emerging areas of stakeholder interest. 

As the Company matures, it will continue to evolve its sustainable development strategy in setting out its sustainability
commitments, aligned with relevant industry requirements and frameworks, including the UN Sustainable Development
Goals, and establishing targets for its ESG performance.

5

REX MINERALS LTD

REVIEW OF OPERATIONS (Continued) for the year ended 30 June 2021

CORPORATE (CONTINUED)

Gender, diversity and inclusion

This year, the Board established a stand-alone gender, diversity and inclusion policy. The Company achieved its measurable
objectives for gender diversity: female representation of at least 20% of the total workforce; and inclusion of a credible
and suitability experienced female candidate for nomination to the Board, who was subsequently appointed (Amber
Rivamonte in the role of Executive Director of Finance). At 30 June 2021, women made up 20% of the Rex Board,
67% of senior executives and 31% of the total workforce of the Company.

Climate change

The Company understands that climate change is a significant global challenge and that as a responsible citizen it must
identify, assess, action and report its response to climate change challenges. Its approach to climate change – how it
manages mitigation and adaptation to climate change impacts, both physical and transitional, as well as the opportunities
and risks associated with the transition to a low-carbon future – is evolving as its projects progress. Its focus on copper as
a critical mineral input to decarbonisation, electrification and green technologies sits at the core.

Hillside will generate the equivalent of 2,206,853t of carbon dioxide (tCO2-e) throughout Stage 1’s projected 14-year
operational life, 60% of which will come from electricity. Electricity will be sourced from the South Australian power grid
which is 60% sourced from renewable energy. It will utilise existing infrastructure such as housing, highways, ports and
water to minimise its additional carbon footprint associated with the construction of new infrastructure. Rex will explore
the use of existing and potential renewable energy, to further reduce the Project’s carbon footprint, as appropriate
opportunities arise.

HILLSIDE PROJECT – SOUTH AUSTRALIA

Rex is developing its 100% owned, flagship copper-gold Hillside Project,
located 165km (two hours) from Adelaide and 12km south of the
Ardrossan township on the Yorke Peninsula, South Australia. Hillside
is an Iron Oxide Copper Gold (IOCG) deposit, under shallow cover, in
the Gawler Craton. 

Hillside is one of the largest undeveloped open pit copper projects
in Australia and currently contains 2Mt of copper (Cu) and
1.4Moz of gold (Au). 

In July 2020, Hillside’s PEPR for Stage 1 of the Project was
approved by the South Australian Government. Stage 1 has a 13-year
mine life and recovers 468kt Cu from the 2Mt Mineral Resources.
In July 2021, Rex doubled the Ore Reserves to 988kt Cu.  

SOUTH AUSTRALIA

Prominent Hill

Gawler
Craton

Olympic Dam

Carrapateena

HILLSIDE
PROJECT

Adelaide

Hillside’s mining method is conventional open pit drill, blast, load and haul. The process flowsheet is standard crush, single
stage SAG grind and 3-stage flotation circuit. The Project is in close proximity to sealed highways, ports, power and water,
as well as a population base to staff the operation. This provides Hillside with substantial cost and capital efficiency
advantages compared with equivalent projects.

The Hillside Feasibility Study Costing Update (refer ASX Release 31 July 2020) for Stage 1, forecast a capex of
$585 million (US$410 million). 

Rex believes there has never been a better time or stronger rationale for Australia and its States to champion investment
in its people and assets and to future proof, indeed future prosper, the country through projects like Hillside. The Project,
alongside other mining developments like it, will be the critical bedrock in the nation’s recovery from the COVID-19
pandemic and transition to a prosperous low-carbon economy. It will provide opportunities for wealth creation via local
community jobs and business opportunities, government royalties and taxes, and shareholder returns.

Locally, Hillside contributes to the South Australian Government’s plans in establishing the State as a world-leading
copper precinct, via its Copper Strategy1. South Australia’s vision is to be the major contributor to Australia’s aspiration
to become the world’s third largest copper producer, with the objective to more than triple South Australia’s copper
production to 1Mtpa by 2030.

1Government of South Australia (2016). Department for Energy and Mining: South Australia’s Copper Strategy. Adelaide, South Australia.

ANNUAL REPORT

2 0 2 1

6

REX MINERALS LTD

REVIEW OF OPERATIONS (Continued) for the year ended 30 June 2021

HILLSIDE PROJECT – SOUTH AUSTRALIA (CONTINUED)

Hillside Ore Reserves estimate 

With the current copper price and outlook well above Rex’s incentive price of US$3.50/lb the Company completed an
updated Ore Reserves estimate for Hillside (refer ASX Release 20 July 2021). Figure 2 outlines Hillside’s contained
copper Ore Reserves relative to a selection of Australian copper developers and producers.

COMPANY RESERVES BY
CONTAINED COPPER METAL

HILLSIDE

1,200

1,000

)
T
K
(
U
C

800

600

400

200

0

RXM

SFR

29M

HAV

KGL

VXR

AIS

Figure 2: Hillside relative to a selection of Australian copper developers and producers.

The Ore Reserves estimate for the Hillside Project as at July 2021 is 181.6Mt @ 0.54% Cu and 0.14g/t Au,
containing 988kt of copper metal and 823kozs of gold. The new Ore Reserves summary is presented in Table 1.

Category

Proved

Probable

Total

Tonnes
(Mt)

58

123

182

Copper
(%)

0.52

0.56

0.54

Gold
(g/t)

0.16

0.13

0.14

Contained
Copper (kt)

Contained
Gold (koz)

301

687

988

308

515

823

Table 1: Hillside Ore Reserves – July 2021.

Calculations have been rounded to the nearest Mt of ore, 0.01% Cu grade, 0.01g/t Au grade, 1,000t of Cu metal and 1,000ozs of Au metal.

Some apparent errors may occur due to rounding.

The July 2021 Ore Reserves represent an update to the previous Ore Reserves announced to the ASX on 26 May 2015.
A comparison of this Ore Reserves estimate to the 2015 estimate is presented in Table 2. There has been no mining or
depletion of the 2015 Ore Reserves since their estimation.

Category

Total May 2015

Total July 2021

Tonnes
(Mt)

82

182

Copper
(%)

0.62

0.54

Gold
(g/t)

0.16

0.14

% Difference

122%

(13%)

(13%)

Contained
Copper (kt)

Contained
Gold (koz)

509

988

94%

432

823

90%

Table 2: Comparison between the July 2021 Ore Reserves and the previous May 2015 Ore Reserves.

Calculations have been rounded to the nearest Mt of ore, 0.01% Cu grade, 0.01g/t Au grade, 1,000t of Cu metal and 1,000ozs of Au metal.

Some apparent errors may occur due to rounding.

7

 
REX MINERALS LTD

REVIEW OF OPERATIONS (Continued) for the year ended 30 June 2021

HILLSIDE PROJECT – SOUTH AUSTRALIA (CONTINUED)

Hillside Ore Reserves estimate (Continued)

The Mineral Resources used as the basis for the Ore Reserves estimate were announced to the ASX on 25 May 2015.
Measured and Indicated Resources have been converted to Proved and Probable Ore Reserves respectively, subject to mine
design physicals and an economic evaluation. Ore Reserves were estimated by Rex from an updated mine design and
mining schedule completed by AMC Consultants and mineral processing work completed by Wood.

The Stage 2 mine plan extends from near-surface to a depth of 560m, which is shallow for IOCG deposits on the Gawler
Craton. Rex believes that there is potential to increase the Mineral Resources and Ore Reserves down dip and along strike
from the existing Mineral Resources as there has been limited drilling below 600m from surface and along strike from the
Hillside orebody (see Figure 3).

Figure 3: Long section of Hillside orebody upside – open at depth.

SOUTH AUSTRALIAN TENEMENT SCHEDULE at 30 June 2021

South Australia

Tenement

EL6531

EL6497

EL6515

EL59811

EL6100

EL6136

EL6143

EL6189

EL6245

EL6455

ML6438

EML6439

MPL146

ANNUAL REPORT

2 0 2 1

8

Location

Lease Status

Area Type

Current Area

Date

Moonta South

Moonta South

Moonta South

Moonta South

Moonta South

Moonta South

Moonta South

Moonta South

Moonta South

Moonta South

Hillside

Hillside

Hillside

Granted

Granted

Granted

Granted

Granted

Granted

Granted

Granted

Granted

Granted

Granted

Granted

Granted

km2

km2

km2

km2

km2

km2

km2

km2

km2

km2

Ha

Ha

Ha

21

509

257

108

94

91

51

354

1,168

74

2,998

225

94

09/06/2022

27/07/2022

20/09/2022

22/06/2021

16/01/2023

19/03/2022

15/04/2022

01/08/2022

01/08/2022

04/11/2021

15/09/2035

15/09/2022

15/09/2035

1Renewal documentation submitted to the South Australian Government and currently being processed.

REX MINERALS LTD

REVIEW OF OPERATIONS (Continued) for the year ended 30 June 2021

HOG RANCH – NEVADA, USA

It has been an extremely successful year at Hog Ranch with the exploration effort indicating a much larger target
portfolio than previously anticipated. This included a near doubling of the Mineral Resources.

HOG RANCH
RESOURCES ESTIMATE

           INFERRED

           INDICATED

Figure 4: Hog Ranch new Resources estimate of 2.26Moz of gold, delivered 18 months following acquisition.

Drilling results

Drilling was undertaken at the Bells, Krista and Airport/Cameco Project locations with successful extensions to the
previously defined gold mineralisation identified at every location.

Another key outcome from the recent drilling effort was the successful test of 3D induced polarisation (IP) targets in the
Airport area. The interpretations from the 3D IP have assisted greatly in the identification of new locations where gold
mineralisation could exist. Drill holes HR21-010 and HR21-012 were both successful in confirming significant gold
mineralisation on two new structures. Drill hole HR21-010 intersected 114.3m @ 0.64g/t gold including a higher-grade
section of 36.6m @ 1.4g/t gold, and HR21-021 returned a significant initial hit on a new structure of 56m @ 2.12g/t gold
including higher grade intervals of 12.2m @ 3.86g/t gold and 4.6m @ 8.61g/t gold. 

A summary of the more noteworthy drill intersections returned over the year is shown in Table 3.

Location

Krista

Krista

Krista

Bells

Bells

Airport

Drill Hole
Number

HR20-023

HR20-025

HR20-026

HR20-030

HR21-001

HR21-008

including

including

New Discovery

HR21-010

From
(m)

0

83.8

0

0

18.3

7.6

18.3

89.9

94.5

including

143.3

New Discovery

HR21-012

including

including

54.9

57.9

88.4

To
(m)

210.3

184.4

125.0

33.5

123.5

118.9

32.0

100.6

208.8

179.8

111.3

70.1

93.0

Down-hole
Length (m)

True Width
(m)

Average Gold
Assay (g/t))

~187

~93

~103

~29

~95

~96

~12

~9

210.3

100.6

125.0

33.5

105.2

111.3

13.7

10.7

114.3

36.6

56.4

12.2

4.6

0.66

0.77

0.67

1.29

0.55

0.83

2.27

1.44

0.64

1.4

2.12

3.86

8.61

Table 3: Composited gold intersections from recent RC drilling at Hog Ranch.
Estimated true widths are based on interpreted dip of gold mineralisation where surrounding drill hole information is available.

In tandem with the drilling programs, further mapping from internationally experienced epithermal gold experts was
undertaken at Hog Ranch.

Key findings from the mapping are that there are several large-scale breccias at both Bells and further afield which
appear to have an important influence on the emplacement and location of the gold mineralisation at Hog Ranch.

9

REX MINERALS LTD

REVIEW OF OPERATIONS (Continued) for the year ended 30 June 2021

HOG RANCH – NEVADA, USA (CONTINUED)

Drilling results (Continued)

Both the historical drilling information and recent drilling results support this updated interpretation. This interpretation
also opens the possibility for larger-scale and higher-grade gold mineralisation focussed around where these breccias are
extending to greater depths beyond the current drilling information (see example from Bells in Figure 5). 

Figure 5: Cross section view at Bells, highlighting drilling results from holes HR21-001 and HR21-002
relative to the surrounding earlier Rex drilling and historical drilling information.

Mineral Resources update

On the back of the successful drilling campaigns, Rex updated the Mineral Resources estimate (refer ASX Release
23 March 2021) at Hog Ranch to 165Mt @ 0.43g/t gold for 2.26Mozs of contained gold. The Mineral Resources update
included a substantial increase in the Indicated portion of the Mineral Resources, up from 180kozs to 560kozs of gold.

Deposit

Cut-off Grade (g/t)

Tonnage (Mt)

Grade (g/t)

Gold (koz)

Oxide

Bells – Indicated

Bells – Inferred

Bells – Total

Krista – Indicated

Krista – Inferred

Krista – Total

Oxide Total

0.2

0.2

0.2

0.2

24

13

37

11

110

121

158

Sulphide

0.50

0.40

0.47

0.48

0.39

0.40

0.41

390

170

560

170

1,380

1,550

2,110

Deposit

Cut-off Grade (g/t)

Tonnage (Mt)

Grade (g/t)

Gold (koz)

Cameco – Inferred

Airport – Inferred

Sulphide Total

TOTAL

0.3

0.3

3.9

2.8

6.7

165

0.75

0.63

0.70

0.43

90

60

150

2,260

Table 4: Summary results for the updated Mineral Resources estimate at Hog Ranch.

Reported tonnage and gold grades for both the Inferred and Indicated Mineral Resources estimates are rounded to two significant figures.
Some apparent errors may occur due to rounding.

ANNUAL REPORT

2 0 2 1

10

REX MINERALS LTD

REVIEW OF OPERATIONS (Continued) for the year ended 30 June 2021

HOG RANCH – NEVADA, USA (CONTINUED)

New regional datasets and increased land position

In late 2020, Rex completed a
number of airborne surveys to
cover the entire volcanic caldera
at Hog Ranch.
These new datasets, combined with
all the historical mining and
exploration information, have
substantially increased the
potential for Hog Ranch to host
hydrothermal alteration and
associated gold mineralisation
over a much larger area than
previously understood.

As a result of these observations,
Rex has expanded its land position
to capture locations which have
geological features consistent with
large scale gold mineralisation.
The expanded landholding at Hog
Ranch has been broken down into
project-based locations which
define their own set of target types
and overall exploration potential as
shown in Figure 6.

Figure 6: Summary of defined project areas relative to new airborne magnetic and hyperspectral data. 

Note: the magnetic image is represented by the underlying colour sequence which covers Rex’s Mining Claim area and the hyperspectral data is shown on top
of the magnetic imagery which is typically represented as small colour coded positions where specific hydrothermal clay minerals have been identified.

NEVADA, USA TENEMENT SCHEDULE at 30 June 2021

As at 30 June 2021, the Hog Ranch Property is made up of 1,035 unpatented mining claims located in Washoe County,
Nevada. Hog Ranch Minerals Inc directly owns 788 Mining Claims (see table below) and controls the remaining 247
Mining Claims through a mining lease with purchase option with Nevada Select Royalty Inc.

Nevada, USA

Lode Mining Claims

Location

Lease Status

Area Type

Total Area1

Date Certified

NHR 1-30

Washoe County

NHR 31-100

Washoe County

NHR 101-232

Washoe County

NHR 233-417

Washoe County

NHR 418-434

Washoe County

GL 1-104

GL 105-177

GL 178-354

Washoe County

Washoe County

Washoe Country

Claimed

Claimed

Claimed

Claimed

Claimed

Claimed

Claimed

Claimed

1Total Area comprises the area of each Lode Mining Claim, i.e. 1,500’ x 600’.

Ft2

Ft2

Ft2

Ft2

Ft2

Ft2

Ft2

Ft2

27,000,000

10/08/2019

63,000,000

28/01/2020

118,800,000

10/07/2020

166,500,000

19/11/2020

15,300,000

30/04/2021

93,600,000

10/07/2020

65,700,000

19/11/2020

159,300,000

30/04/2021

11

REX MINERALS LTD

REVIEW OF OPERATIONS (Continued) for the year ended 30 June 2021

SUPPLEMENTARY INFORMATION

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.

Compliance Statement

With reference to previously reported Mineral Resources, Ore Reserves, Feasibility Studies and Scoping Studies the
Company confirms that it is not aware of any new information or data that materially affects the information included in
the original market announcements as referenced.

In the case of estimates of Mineral Resources and Ore Reserves that reference material assumptions and technical
parameters underpinning the information, contained within this Annual Report, continue to apply and have not materially
changed. The Company confirms that the form and context in which the Competent Person’s findings are presented have
not been materially modified from the original market announcement. The estimated Ore Reserves and Mineral Resources
underpinning any production target have been prepared by a competent person in accordance with the requirements in
Appendix 5A (JORC code).

Competent Persons’ Statement

The information in this report that relates to Exploration Results 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 is
an employee 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 report of the matters based on his information in the form and context
in which it appears.

The information in this report that relates to mining and/or Ore Reserves is based on, and fairly reflects, information
compiled by Mr Charles McHugh who is a Fellow of the Australasian Institute of Mining and Metallurgy and an employee
of Rex Minerals Ltd. Mr McHugh 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 McHugh consents to the inclusion in the report of the matters based on his information in the form and context in
which it appears.

The information in this report that relates to metallurgy is based on, and fairly reflects, information compiled by Mr John
Burgess who is a Fellow of the Australasian Institute of Mining and Metallurgy and a consultant to Rex Minerals Ltd.
Mr Burgess 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 Burgess
consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

Base Case Assumptions – Bells Project

The Bells Scoping Study (2020) price assumptions are quoted in US dollars and gold US$1,550/oz.

Base Case Assumptions – Hillside Project

The Hillside Feasibility Study (2020) price assumptions for the Stage 1 life of the operation are copper US$3.00/lb;
gold US$1,550/oz and exchange rate of AUD:USD $0.70.

ANNUAL REPORT

2 0 2 1

12

DIRECTORS’
REPORT

For the year ended 30 June 2021

A B N 12 124 960 523

13

REX MINERALS LTD

DIRECTORS’ REPORT (Continued) for the year ended 30 June 2021

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 2021
and the auditors’ report thereon.

DIRECTORS

The following persons were Directors of the Company at the date of this report:

Name, qualifications and
independence status

Mr Ian Smith

Chairman
Independent Non-
Executive Director

(B.E (Hons, Mining),
B Fin Admin, FIEAust,
FAusIMM)

Mr Richard Laufmann

Chief Executive Officer
and Managing Director

(B.Eng (Mining), MAusIMM,
MAICD)

Experience, special responsibilities and other directorships

Mr Ian Smith has been a Director since 18 February 2019 and was appointed Chairman
on 1 June 2021. Mr Smith also serves as a member of the Company’s Audit Committee
and its Remuneration Committee.

Ian 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.
Ian is a Fellow of both the Australasian Institute of Mining and Metallurgy and the
Institute of Engineers and a Non-Executive Director of Red River Resources Limited.

In prior roles, Ian 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. Ian is a past
president of the Australian Mines & Metals Association and is a past chairman of the
Minerals Council of Australia.

Mr Richard Laufmann is a founding director of ASX-listed Rex Minerals, and was
appointed Chief Executive Officer and Managing Director in April 2015. Richard,
a graduate of the WA School of Mines, is a mining engineer with broad experience
in the resources sector – specifically in copper, gold and nickel – both corporately
and operationally.

Before becoming CEO of Rex, Richard was the CEO of ASX-listed Indophil
Resources which had ownership in and management of one of the world’s largest
undeveloped copper projects (Tampakan). This company operated in an extremely
challenging commodity price and geo-political environment. 

Prior to Indophil, Richard was CEO of ASX-listed Ballarat Goldfields. On joining, he
recapitalised and led the company, through feasibility, financing, construction and
commissioning of the Ballarat Gold Mine. In early 2007, Ballarat was taken over
by Lihir Gold. 

Previously, Richard was the General Manager of Gold for Western Mining
Corporation (WMC), with some of the largest and most diverse surface and
underground operations in the country. 

Richard is a past Chairman of the State Council of the Minerals Council of Australia
(Victorian division) at the time the State Council merged into the national MCA.

ANNUAL REPORT

2 0 2 1

14

REX MINERALS LTD

DIRECTORS’ REPORT (Continued) for the year ended 30 June 2021

Name, qualifications and
independence status

Experience, special responsibilities and other directorships

Ms Amber Rivamonte

Ms Amber Rivamonte was appointed a Director of Rex on 1 June 2021.

Chief Financial Officer
and Executive Director
of Finance

(CPA; B.Bus(Acc); MAICD)

Mr Ron Douglas

Independent Non-
Executive Director

(B.Eng, FAIM, MAustIMM,
MAICD)

Mr Greg Robinson

Independent Non-
Executive Director

(B.Sc(Hons); MBA; MAICD)

Amber has over 25 years’ experience in the resources industry covering the fields of
commercial, strategic and risk management, corporate governance and financial
management experience. Amber has a background in accounting and is a certified practicing
accountant (CPA). She has previously held the dual role of chief financial officer and
company secretary at Rex Minerals and Ballarat Goldfields, as well as the role of company
secretary at Indophil Resources and White Rock Minerals. She has also been a director of a
number of companies in Australia and internationally.

Amber’s experience covers all aspects of managing resources companies, from project
acquisition, mergers, demergers, takeovers, schemes and various forms of fund raisings.

Mr Ron Douglas has been a Director of Rex since 18 February 2019. He is Chairman of
the Remuneration Committee and a member of the Audit Committee. 

Ron is an engineer by qualification and has extensive experience leading owners’ teams for
major projects located around the world. Ron is the Executive Vice President 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. Ron was
formerly a non-executive chairman of Highlands Pacific Limited.

Ron 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 Greg Robinson was appointed a Director of Rex on 1 June 2021. He is Chairman
of the Audit Committee and a member of the Remuneration Committee.

Greg has extensive executive experience in the finance and resources industries. He is
a Non-Executive Director of Incitec Pivot Limited, and is Deputy Chairman and
Non-Executive Director of the Royal Automobile Club of Victoria (RACV). 

He is the former managing director & chief executive officer of Newcrest Mining
Limited and former chief executive officer of Lattice Energy Limited. Prior to joining
Newcrest, Mr Robinson was on the executive committee of and held senior executive
roles in the Petroleum and Energy Division of BHP and was a director of Investment
Banking at Merrill Lynch & Co and headed the Australia/Asia Pacific resources team.

Greg was previously a non-executive director of the World Gold Council, and a non-
executive director of St Vincent’s Institute of Medical Research.

The following persons were Directors of the Company at any time during the financial year. There has been no new
Directors appointed since the end of the financial year to the date of this report.

>      Mr Ian Smith – appointed Non-Executive Chairman 1 June 2021.
>      Mr Richard Laufmann.
>      Mr Ron Douglas.
>      Ms Amber Rivamonte – appointed as Executive Director of Finance 1 June 2021.
>      Mr Greg Robinson – appointed as Non-Executive Director 1 June 2021.
>      Dr David Carland – Non-Executive Chairman retired 31 May 2021.
>      Mr Alister Maitland – Non-Executive Director retired 31 May 2021.
>      Mr Mitchell Hooke – Non-Executive Director retired 20 October 2020.

15

REX MINERALS LTD

DIRECTORS’ REPORT (Continued) for the year ended 30 June 2021

COMPANY SECRETARY

Ms Kay Donehue

(GradDipACG, GIA(Cert), AGIA, ICSA, AAICD, Chartered Secretary)

Ms Donehue has over 25 years’ experience in the mining and banking industries, and most recently has focused
extensively on company secretarial and governance roles in the mining sector. Kay 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.

Kay 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 

Mr Ian Smith1,2

Mr Richard Laufmann1

Ms Amber Rivamonte1

Mr Ron Douglas1,2

Mr Greg Robinson2

Former

Dr David Carland

Mr Alister Maitland

Mr Mitchell Hooke

A

6

6

1

6

1

6

6

2

B

6

6

1

6

1

6

6

2

A

2

2

–

2

–

2

2

1

B

2

2

–

2

–

2

2

1

A

1

1

–

1

1

–

–

–

B

1

1

–

1

1

–

–

–

A – Number of meetings attended.

B – Number of meetings held during the year whilst the Director held office.

1  Director is not a member of the Committees but attend meetings as appropriate by invitation.

2  Director was appointed to the Committees effective 1 June 2021.

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, 4th Edition. In addition, 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. 

This Corporate Governance Statement is dated 30 June 2021 and was approved by the Board on 13 September 2021.

ANNUAL REPORT

2 0 2 1

16

REX MINERALS LTD

DIRECTORS’ REPORT (Continued) for the year ended 30 June 2021

PRINCIPAL ACTIVITIES

The Company’s vision is to “produce the minerals needed for the world we all envision”and our stated purpose to achieve
this “is to explore and mine responsibly to benefit our stakeholders and contribute to a more sustainable world”.
During the year the principal activities of the Group consisted of exploration, evaluation and development. In pursuing
these activities, we delivered on the work programs below:

(cid:129) Following receipt of approval of Hillside’s PEPR we have begun financing and pre-development plans for the Project. 
(cid:129) Progressed the exploration and development options at Hog Ranch, including:

           > Grew the shallow disseminated gold Mineral Resources;
           > Developed the portfolio of target zones;
           > Commenced regional drill target generation; and
           > Continued baseline environmental studies for permitting of the Bells Project.

(cid:129) We continue to explore options for our highly prospective Iron Oxide Copper Gold (IOCG) tenements in South Australia.

OPERATING AND FINANCIAL REVIEW

The income statement shows a loss after tax of $8.8 million (2020: $5.2 million) for the year. The Group has no debt
(2020: $4.4 million). As at 30 June 2021, the Group had a cash position of $9.7 million (2020: $3.0 million). Operating
activities resulted in a net cash outflow for the year of $8.2 million (2020: outflow $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

On 4 August 2021, the Company launched a $50 million two tranche placement. Tranche 1 raised $5.3 million and settled on
10 August 2021 with Tranche 2, subject to shareholder approval at a General Meeting to be held on 14 September 2021, to
raise a further $44.7 million.

Other than mentioned above, no matters or circumstances have arisen since 30 June 2021 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 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.

17

REX MINERALS LTD

DIRECTORS’ REPORT (Continued) for the year ended 30 June 2021

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 Executives 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 Executives 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.

                                                                                                                                       2021                  2020
                                                                                                                                             $                        $

Audit and review of financial statements                                                                                   47,000               47,500

REMUNERATION REPORT – AUDITED

The Directors present the Remuneration Report for the year ended 30 June 2021, 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), 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. Non-Executive Directors are not eligible for performance
linked compensation.

ANNUAL REPORT

2 0 2 1

18

                                                                                     
REX MINERALS LTD

DIRECTORS’ REPORT (Continued) for the year ended 30 June 2021

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 and are issued at the discretion of
the Board with conditions that the Board determines as appropriate at the time of issue. 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)

2021
$

8.8

2020
$

5.2

2019
$

5.1

2018
$

5.2

2017
$

0.8

Closing share price at financial year’s end ($)

0.35

0.070

0.053

0.105

0.056

Service agreements 

In line with Group policy, the Group has entered into contracts with each of its Executives, 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. Where applicable, Executives are also entitled to receive (on termination of employment)
their statutory entitlements of accrued annual and long service leave, together with any superannuation benefits.
Contracts provide for no additional entitlement on termination in the event of removal for misconduct or gross negligence.

The employment or consultancy contract outlines the components of compensation paid to the Executives, and may be
either based on an annual amount or daily rate. They do not prescribe how compensation levels are modified year to year.
Compensation levels are reviewed each year to meet the principles of the compensation policy. Any STI is at the discretion
of the Board. 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, but subject to shareholder
approval may receive options as part of their remuneration. Directors’ fees cover all main Board activities and
membership of Board committees.

19

REX MINERALS LTD

DIRECTORS’ REPORT (Continued) for the year ended 30 June 2021

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 2021
are as follows:

s
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%
2
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8
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%
8
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%
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%
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7
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4
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ANNUAL REPORT

2 0 2 1

20

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
REX MINERALS LTD

DIRECTORS’ REPORT (Continued) for the year ended 30 June 2021

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 2020
are as follows:

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REX MINERALS LTD

DIRECTORS’ REPORT (Continued) for the year ended 30 June 2021

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 5.2 million options and issued 2.2 million ordinary shares as a result of the
exercise of options (2.0 million to KMP and 0.2 million to other participants of the option plan), no options lapsed. 

At 30 June 2021, there were 17.1 million unquoted options over ordinary shares of the Company, 1.0 million at
an exercise price of 8.4 cents, expiring 31 January 2023; 10.9 million at an exercise price of 7.0 cents expiring
29 February 2024; 5.0 million at an exercise price of 17.5 cents expiring 30 November 2024 and 0.2 million at
an exercise price of 47.0 cents expiring 28 May 2025.

Reconciliation of options, ordinary shares and consideration rights 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

Mr Ian Smith

Mr Ron Douglas

Mr Greg Robinson

Mr Richard Laufmann

Held at 
30 June
2020 

Number of
options
granted 

1,000,000

1,000,000

–

–

Number of
options
vested and
exercisable

666,666

666,666

–

–

200,000B

5,000,000A

–

–

Ms Amber Rivamonte

1,500,000

Ms Cherie Leeden

3,000,000

Former

Dr David Carland 

Mr Alister Maitland

Mr Mitchell Hooke

–

–

–

–

–

–

–

–

500,000

1,000,000

–

–

–

% of
options
vested

Number of
options
exercised

Held at 
30 June
2021

66

66

–

–

33

33

–

–

–

666,666

333,334

333,333

666,667

–

–

–

200,000

5,000,000

1,500,000

1,000,000

2,000,000

–

–

–

–

–

–

The fair value of the unlisted options granted 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:

A

B

1 December 2020

28 May 2021

6.6 cents

17.5 cents

19.3 cents

47.0 cents

30 November 2024

28 May 2025

Grant date

Fair value per option at grant date

Exercise price per option

Expiry date

All options vest in three equal tranches.

ANNUAL REPORT

2 0 2 1

22

REX MINERALS LTD

DIRECTORS’ REPORT (Continued) for the year ended 30 June 2021

REMUNERATION REPORT – AUDITED (CONTINUED)

Reconciliation of options, ordinary shares and consideration rights held by Key Management Personnel (KMP) (Continued)

Options (Continued)

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 value of options in the Company granted, expensed, yet to vest (affecting future remuneration) and exercised are
detailed below.

Name

Mr Ian Smith

Mr Ron Douglas

Value of options
granted in year
$1

Value of options
expensed in year
$2

Value of options
yet to be
expensed
$3

Value of options
exercised in year
$4

–

–

9,715

9,715

2,128

Mr Greg Robinson

38,600

Mr Richard Laufmann

330,000

116,343

Ms Amber Rivamonte

Ms Cherie Leeden

–

–

18,032

36,064

5,723

5,723

36,472

213,657

10,749

21,499

79,000

43,667

–

–

–

140,000

1The value of options granted in the year is the total fair value of the options calculated at grant date. This amount is allocated to remuneration over the vesting period.
2The value of options expensed in the year is the portion of fair value of the options recognised as an expense in each reporting period as per the vesting conditions.
3The fair value of options yet to be expensed is the value yet to be allocated to remuneration as per the vesting period.
4The value of options exercised during the year is calculated as the market price of shares of the Company as at close of trading on the date the options were exercised 
after deducting the price paid to exercise the option.

Shareholdings

The table below shows a reconciliation of ordinary shares in the Company held, directly, indirectly or beneficially by each
KMP including their related parties, during the financial year. 

Name

Mr Ian Smith

Mr Ron Douglas

Mr Greg Robinson

Mr Richard Laufmann

Ms Amber Rivamonte

Ms Cherie Leeden

Former

Dr David Carland 

Mr Alister Maitland

Mr Mitchell Hooke

Held at 
30 June 2020
or date became
KMP

–

–

–

8,096,817

5,034,606

Received on
exercise of option 

Acquired or sold
during the year

Held at 30 June
2021 or date
ceased being
KMP

666,666

333,333

–

–

–

181,819

–

–

848,485

333,333

–

323,0761

8,419,893

1,292,3031

6,326,909

–

1,000,000

–

1,000,000

2,022,888

1,338,364

1,441,507

–

–

–

181,818

2,204,706

121,213

1,459,577

–

1,441,507

1Shares issued on the conversion of Hog Ranch Consideration Rights.

23

REX MINERALS LTD

DIRECTORS’ REPORT (Continued) for the year ended 30 June 2021

REMUNERATION REPORT – AUDITED (CONTINUED)

Reconciliation of options, ordinary shares and consideration rights held by Key Management Personnel (KMP) (Continued)

Hog Ranch Consideration Rights (HRCR)

The table below shows a reconciliation of HRCR in the Company held, directly, indirectly or beneficially by KMP including
their related parties, during the financial year.

Name

Held at
30 June 2020 

Acquired during
the year

Converted
during the year

Held at 
30 June 2021

Mr Richard Laufmann

Ms Amber Rivamonte

1,292,303

5,169,210

–

–

323,076

969,227

1,292,303

3,876,907

The Company issued 20 million HRCR (including to related parties) as part of the Hog Ranch acquisition in August 2019.
The HRCR convert to Rex shares on the outcome of the following milestones:

           a.

5 million HRCR on announcement by Rex to the 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 2Moz or
higher of contained gold as defined by the 2012 JORC Code with respect to the Hog Ranch Property and has
a minimum grade of 0.4 g/t of gold in addition to a minimum tonnage of 100 Mt; and

           b.

15 million HRCR on announcement by Rex to the ASX by no later than 31 October 2024 of the Board
approving a decision to mine the Hog Ranch Property.

The acquisition value of the Hog Ranch Property of $1.640 million was based on the fair value of the equity instruments
issued as a consideration. The value was determined using the Black-Scholes model and considering the probability of each
milestone being achieved.

During the year, 5 million HRCR were converted to Rex shares on the achievement of milestone a. (the Mineral Resource
milestone) above, as announced to the ASX on 23 March 2021.

Loans from Directors

In May 2021, the Company pre-paid the Loan Facility Agreement that it had entered into in February 2020. The Loan
Facility Agreement was for a total amount of $4.400 million from a group of lenders (including four Directors), with a one
off establishment fee of 2%, an interest rate of 10%, for a period of 24 months using the Company’s freehold land as
security. Details of loans from Directors, including entities related to them, are set out below:

Name

Mr Ian Smith

Balance at 
1 July
2020
$ 

517,397

Mr Richard Laufmann

1,034,795

Former

Dr David Carland 

Mr Alister Maitland

517,397

258,699

Loan
drawdown
$

Est. Fee
$

Interest
charged
$ 

Payments
$

Balance at 
30 June
2021
$ 

–

–

–

–

–

–

–

–

82,603

(600,000)

165,205

(1,200,000)

82,603

(600,000)

41,301

(300,000)

–

–

–

–

Other transactions with Key Management Personnel (KMP)

KMP hold positions in other companies that result in them having control or significant influence over those companies.

During the year, KMP related companies transacted with the Group. The terms and conditions of these transactions were
no more favourable than those available, or which might reasonably be expected to be available, on similar transactions
to non-KMP companies.

ANNUAL REPORT

2 0 2 1

24

REX MINERALS LTD

DIRECTORS’ REPORT (Continued) for the year ended 30 June 2021

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 49 and forms part of the Directors’ Report for the year
ended 30 June 2021.

Dated at Melbourne this 13th day of September 2021.

Signed in accordance with a resolution of the Directors:

Mr Richard Laufmann
Chief Executive Officer

25

CONSOLIDATED 
FINANCIAL
STATEMENTS 

As at 30 June 2021

The notes on pages 31 to 47 are an integral part of the Consolidated Financial Statements.

ANNUAL REPORT

2 0 2 1

26

REX MINERALS LTD

CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As at 30 June

                                                                                                                                                  2021                  2020
                                                                                                                    Note                       $000                  $000

Current assets                                                                                                      
Cash and cash equivalents                                                                                   7                      9,682                 2,990
Trade and other receivables                                                                                                            145                      41
Prepayments                                                                                                                                   53                      47

Total current assets                                                                                                                    9,880                 3,078

Non-current assets                                                                                               
Exploration and evaluation expenditure                                                               9                      3,243                 3,243
Property, plant and equipment                                                                          10                    14,279               14,339
Water infrastructure                                                                                                                   4,076                 4,076

Total non-current assets                                                                                                           21,598               21,658

Total assets                                                                                                                              31,478               24,736

Current liabilities                                                                                                 
Trade and other payables                                                                                  11                         617                    344
Employee benefits                                                                                             12                         600                    605
Borrowings                                                                                                  22(b)                             –                 4,400

Total current liabilities                                                                                                               1,217                 5,349

Non-current liabilities                                                                                          
Employee benefits                                                                                             12                         115                      67
Provisions                                                                                                                                          –                      36

Total non-current liabilities                                                                                                           115                    103

Total liabilities                                                                                                                           1,332                 5,452

Net assets                                                                                                                                30,146               19,284

Equity                                                                                                                  
Issued capital                                                                                              13(a)                  217,502             197,953
Reserves                                                                                                     13(d)                         846                    810
Accumulated losses                                                                                                             (188,202)           (179,479)

Total equity                                                                                                                              30,146               19,284

The notes on pages 31 to 47 are an integral part of these financial statements.

27

                                                                                                                           
REX MINERALS LTD

CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND
OTHER COMPREHENSIVE INCOME
For the year ended 30 June

                                                                                                                                                  2021                  2020
                                                                                                                    Note                       $000                  $000

Finance income                                                                                                                               18                      21
Government grants                                                                                                                          55                    123

Corporate and compliance                                                                                                           (891)               (1,017)
Depreciation expense                                                                                        10                        (58)                    (64)
Employee benefits expense                                                                                14                   (2,204)               (2,037)
Marketing expenses                                                                                                                    (273)                  (117)
Exploration and evaluation                                                                                                      (4,589)               (1,786)
Borrowing costs                                                                                                                          (731)                  (282)
Foreign currency revaluation                                                                                                       (117)                         –
Gain on disposal of fixed assets                                                                                                        11                         –

Loss before tax                                                                                                                       (8,779)               (5,159)

Income tax benefit                                                                                            15                             –                         –

Total loss for the period after tax                                                                                            (8,779)               (5,159)

Other comprehensive income                                                                                                              –                         –

Total comprehensive loss attributable to members of Rex Minerals Ltd                                   (8,779)               (5,159)

Loss per share attributable to members of Rex Minerals Ltd                                                               
Basic loss per share (cents)                                                                              16                     (2.36)                 (1.70)
Diluted loss per share (cents)                                                                            16                     (2.36)                 (1.70)

The notes on pages 31 to 47 are an integral part of these financial statements.

ANNUAL REPORT

2 0 2 1

28

                                                                                                                           
                                                                                                                           
                                                                                                                           
REX MINERALS LTD

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the year ended 30 June

                                                                                                  Share       Share based      Accumulated            Total 
                                                                                                capital           payments                 losses          equity
                                                                                                                          reserve                                               
                                                                                Note            $000                   $000                   $000            $000

Balance at 1 July 2020                                                           197,953                     810           (179,479)         19,284

Issue of ordinary shares                                           13(a)         20,539                         –                         –         20,539
Cost of share issue                                                                    (1,174)                         –                         –        (1,174)
Share based payments                                              13(d)                  –                     276                         –              276
Transfer from share based payments reserve                                    184                  (240)                       56                  –
Total comprehensive loss for the period                                               –                         –               (8,779)        (8,779)

Balance at 30 June 2021                                                        217,502                     846           (188,202)         30,146

Balance at 1 July 2019                                                           196,269                     360           (174,667)         21,962

Issue of ordinary shares                                           13(a)           1,684                         –                         –           1,684
Share based payments                                              13(d)                  –                     797                         –              797
Transfer from share based payments reserve                                        –                  (347)                     347                  –
Total comprehensive loss for the period                                               –                         –               (5,159)        (5,159)

Balance at 30 June 2020                                                        197,953                     810           (179,479)         19,284

The notes on pages 31 to 47 are an integral part of these financial statements.

29

                                                                                                                                                                                    
REX MINERALS LTD

CONSOLIDATED STATEMENT OF CASH FLOWS
For the year ended 30 June

                                                                                                                                                  2021                  2020
                                                                                                                    Note                       $000                  $000

Cash flows from operating activities                                                                     
Cash paid to suppliers and employees                                                                                       (3,115)               (3,023)
Exploration and evaluation payments                                                                                       (4,246)               (1,891)
Interest received                                                                                                                              19                      26
Government grants                                                                                                                          50                    102

Net cash used in operating activities                                                            17(a)                   (7,292)               (4,786)

Cash flows from investing activities                                                                      
Acquisition of property, plant and equipment                                                     10                          (3)                      (2)
Proceeds from the sale of property, plant and equipment                                                                   15                         –

Net cash used in investing activities                                                                                                12                      (2)

Cash flows from financing activities                                                                      
Proceeds from issue of share capital                                                                 13                    20,539                    784
Payment of share issue costs                                                                                                    (1,174)                         –
Proceeds from borrowings                                                                            17(b)                             –                 4,400
Payment of borrowing costs                                                                                                        (884)                  (129)
Repayment of borrowings                                                                                                         (4,400)                         –

Net cash from financing activities                                                                                            14,081                 5,055

Net decrease in cash and cash equivalents                                                                                  6,801                    267
Cash and cash equivalents at beginning of the period                                                                    2,990                 2,723
Effect of change in exchange rates                                                                                              (109)                         –

Cash and cash equivalents at period end                                                             7                      9,682                 2,990

The notes on pages 31 to 47 are an integral part of these financial statements.

ANNUAL REPORT

2 0 2 1

30

                                                                                                                           
                                                                                                                           
                                                                                                                           
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 68 St Vincent Highway, Pine Point South Australia 5571. 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 and USA.

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 13 September 2021.              

(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.

           At 30 June 2021, the Group holds cash of $9.682 million and net current assets of $8.663 million. In August 2021,
the Group announced a $50 million, two tranche placement. Tranche 1 raised $5.348 million and settled on
10 August 2021. Tranche 2 has binding commitments to raise a further $44.652 million and is conditional on
shareholder approval at a General Meeting to be held on 14 September 2021. Directors are of the opinion that
the Group is able to meet its obligations as they fall due for at least twelve months from the date of signing this
financial report and that the going concern basis of preparation is appropriate.

(c)       Functional and presentation currency

           These Group financial statements are presented in Australian dollars, which is the functional currency of all

entities domiciled in Australia, while the entity domiciled in the USA uses US dollars. 

           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 10
(cid:129)        note 18

Exploration – determining the fair value of the equity instruments issued on acquisition.
Recoverable value of non-current assets – assessment of impairment indicators.
Share based payments – key assumptions used in the valuation model.

31

REX MINERALS LTD

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

3.

SIGNIFICANT ACCOUNTING POLICIES

The accounting policies set out below have been applied consistently to all periods presented in these Group
financial statements, and have been applied consistently by Group entities. The Group has adopted all of the new
and revised Standards and Interpretations issued by the Australian Accounting Standards Board that are relevant
to the Group and effective for the current annual reporting period.

(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.

(b)       Financial instruments

           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)

Cash and cash equivalents

Cash and cash equivalents comprise cash balances and call deposits with an original maturity of three
months or less.

           (ii) 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.

           (iii) Borrowings

Borrowings are recognised for amounts to be paid in the future for funds advanced to the Group.
Interest expense is recognised as it accrues in profit or loss, using the effective interest method.                    

(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.

ANNUAL REPORT

2 0 2 1

32

           
           
           
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.

The ultimate recoupment of costs capitalised for exploration and evaluation is dependent on successful
development and commercial exploitation or sale of the respective area of interest.

(e)

Impairment

(i)      Financial assets

The Group recognises loss allowances for expected credit loss (ECLs) on financial assets measured at amortised
cost. Loss allowances for other receivables are always measured at an amount equal to lifetime ECLs.

(ii)     Non-financial assets

The carrying amounts of the Group’s non-financial assets are reviewed at each reporting date to determine
whether there is any indication of impairment. If any such indication exists, then the asset’s recoverable
amount is estimated.

The recoverable amount of an asset or cash-generating unit is the greater of its value in use and its fair
value less costs to sell. In assessing value in use, the estimated future cash flows are discounted to their
present value using a pre-tax discount rate that reflects current market assessments of the time value of
money and the risks specific to the asset. For the purpose of impairment testing, assets are grouped together
into the smallest group of assets that generate cash inflows from continuing use that are largely independent
of the cash inflows of other assets or groups of assets (the “cash-generating unit”). The goodwill acquired in
a business combination, for the purpose of impairment testing, is allocated to cash-generating units that are
expected to benefit from the synergies of the combination.

An impairment loss is recognised if the carrying amount of an asset or its cash-generating unit exceeds its
recoverable amount. Impairment losses are recognised in profit or loss. Impairment losses recognised in
respect of cash-generating units are allocated first to reduce the carrying amount of any goodwill allocated
to the units and then to reduce the carrying amount of the other assets in the unit (group of units) on a pro
rata basis.

An impairment loss in respect of goodwill is not reversed. In respect of other assets, impairment losses
recognised in prior periods are assessed at each reporting date for any indications that the loss has
decreased or no longer exists. An impairment loss is reversed if there has been a change in the estimates
used to determine the recoverable amount. An impairment loss is reversed only to the extent that the asset’s
carrying amount does not exceed the carrying amount that would have been determined, net of depreciation
or amortisation, if no impairment loss had been recognised.

33

REX MINERALS LTD

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

3.

(f)

SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Employee benefits

(i)      Wages, salaries and annual leave

Liabilities for employee benefits for wages, salaries and annual leave that are expected to be settled within
12 months of the reporting date represent obligations resulting from employee services provided to the
reporting date, and are calculated at undiscounted amounts based on remuneration, wage and salary rates
that the Company expects to pay as at reporting date including related on-costs such as workers
compensation insurance and payroll tax.

(ii)     Long-term benefits

The Group’s obligation in respect of long service leave is measured as the present value of the future benefit
expected to be paid to employees that has been earned in return for their service in the current and prior
periods. Consideration is given to the expected future wage and salary levels, experience of employee departures
and periods of service. Expected future payments are discounted using Australian corporate bond rates.

(iii)    Share based payments

Equity-based compensation is recognised as an expense in respect of the services received.

The fair value of options granted is recognised as an expense with a corresponding increase in equity.
The fair value is measured at grant date and recognised over the period during which the participants
become unconditionally entitled to the options.

The fair value at grant date is independently determined using a Black-Scholes option pricing model that
takes into account the exercise price, the term of the options, the vesting and performance criteria, the impact
of dilution, the non-tradeable nature of the option, the share price at grant date and expected price volatility
of the underlying share, the expected dividend yield and the risk-free interest rate for the term of the option.

(g)

Tax

(i)      Income taxes

Income tax expense comprises current and deferred tax. Income tax expense is recognised in profit or loss
except to the extent that it relates to items recognised directly in equity, in which case it is recognised in equity.

Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted or
substantively enacted at the reporting date, and any adjustment to tax payable in respect of previous years.

Deferred tax is recognised using the balance sheet method, providing for temporary differences between the
carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation
purposes. Deferred tax is not recognised for the following temporary differences: the initial recognition of
assets or liabilities in a transaction that is not a business combination and that affects neither accounting nor
taxable profit, and differences relating to investments in subsidiaries to the extent that it is probable that they
will not reverse in the foreseeable future. In addition, deferred tax is not recognised for taxable temporary
differences arising on the initial recognition of goodwill. Deferred tax is measured at the tax rates that are
expected to be applied to the temporary differences when they reverse, based on the laws that have been
enacted or substantively enacted by the reporting date. Deferred tax assets and liabilities are offset if there is
a legally enforceable right to offset current tax liabilities and assets, and they relate to income taxes levied by
the same tax authority on the same taxable entity, or on different tax entities, but they intend to settle current
tax liabilities and assets on a net basis or their tax assets and liabilities, will be realised simultaneously.

A deferred tax asset is recognised to the extent that it is probable that future taxable profits will be available
against which the temporary difference can be utilised. Deferred tax assets are reviewed at each reporting
date and are reduced to the extent that it is no longer probable that the related tax benefit will be realised.

Research and development benefits are recognised in the year the benefit is received.

(ii)     Tax consolidation

The Company and its wholly-owned Australian resident entities are part of a tax consolidated group. As a
consequence, all members of the tax consolidated group are taxed as a single entity. The head entity within
the tax consolidated group is Rex Minerals Ltd. The tax consolidated group has entered into tax funding and
tax sharing agreements.

ANNUAL REPORT

2 0 2 1

34

REX MINERALS LTD

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

3.

SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

(g)

Tax (Continued)

(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.

(h)

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.

(i)

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.

(j)

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. Unallocated items comprise mainly corporate and
compliance expenditure.

           Segment capital expenditure is the total cost incurred during the period to acquire PP&E.

(k)       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.

(l)        Government grants

          The Company recognises unconditional government grants in profit or loss when the grants become receivable. 

           Grants that compensate the Company for expenses incurred are recognised in the profit or loss in the periods in

which the expenses are recognised.

35

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 are effective for annual periods beginning after 1 July 2021 and earlier

application is permitted; however, the Group has not early adopted the new or amended standards in preparing
these consolidated financial statements and they are not expected to have a material effect on the Group’s
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 repayment of borrowings when they fall due.

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.

ANNUAL REPORT

2 0 2 1

36

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 Group has two reportable segments for the year ended 30 June 2021 which are the Group’s areas of focus.

The area’s offer different exploration potential and are managed separately due to their physical locations.
In South Australia, the Group has the Hillside Copper-Gold Project and also it’s highly prospective exploration
portfolio; whilst in Nevada, USA the Group has the Hog Ranch Property, where the focus is on gold exploration
in key project areas. For each reportable segment, the CEO reviews internal management reports on at least
a quarterly basis, segment assets and liabilities are not reported to the CEO.

                                                             South Australia           Nevada, USA           Unallocated            Total
2021                                                                       $000                        $000                      $000            $000

Finance income                                                              –                              –                          18                18
Government grants                                                         –                              –                          55                55

Losses before tax (including
depreciation and interest expense)                           1,421                       4,185                     3,173           8,779
           Depreciation                                                     52                              –                             6                58
           Interest expense                                                  –                              –                        727              727

                                                             South Australia           Nevada, USA           Unallocated            Total
2020                                                                       $000                        $000                      $000            $000

Finance income                                                              –                              –                          21                21
Government grants                                                         –                              –                        123              123

Losses before tax (including
depreciation and interest expense)                              930                       1,869                     2,360           5,159
           Depreciation                                                     57                              –                             7                64
           Interest expense                                                  –                              –                        153              153

7.         CASH AND CASH EQUIVALENTS

                                                                                                                                      2021                  2020
                                                                                                                                      $000                  $000

Bank balances and short-term deposits                                                                            9,682                 2,990

Cash and cash equivalents                                                                                              9,682                 2,990

           The Group’s total cash and funds on deposit of $9.682 million (2020: $2.990 million) is exposed to interest rate

risk and a sensitivity analysis for financial assets and liabilities is disclosed in note 19.

37

REX MINERALS LTD

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

8.         DEFERRED TAX ASSETS (DTA) AND DEFERRED TAX LIABILITIES (DTL)

                                                                                                                                      2021                  2020
                                                                                                                                      $000                  $000

Exploration and evaluation assets                                                                                    (494)                  (494)
Property, plant and equipment                                                                                           (49)                    (67)
Provisions                                                                                                                          214                    193
Equity costs                                                                                                                       323                      71

Net DTA/(DTL)                                                                                                                  (6)                  (297)

Tax losses recognised to the extent of the DTL                                                                        6                    297

                                                                                                                                             –                         –

           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 $57.251 million (2020: $56.143 million).

9.         EXPLORATION

                                                                                                                                      2021                  2020
                                                                                                                                      $000                  $000

Balance at 1 July                                                                                                            3,243                 1,645
Additions                                                                                                                               –                 1,598

Balance at 30 June                                                                                                        3,243                 3,243

In August 2019, the Group acquired the Hog Ranch Project. The total acquisition value of $1.640 million was
based on the fair value of the equity instruments issued as a consideration (comprising $0.900 million (10 million
shares) and $0.740 million (20 million HRCR)). The value of the HRCR was determined using the Black-Scholes
model (based on a share price of 8.2 cents on the issue date) and considering the probability of each milestone
being achieved. The amount capitalised is the portion of that valuable attributed to exploration.

10.       PROPERTY, PLANT AND EQUIPMENT

                                                                                                 Land and                Plant and
                                                                                                 buildings              equipment                  Total
2021                                                                                                $000                       $000                  $000

Cost                                                                                                                                                                   
Balance at 1 July 2020                                                                  14,309                      1,960               16,269
Additions                                                                                                –                             3                        3
Disposals                                                                                                –                        (91)                    (91)

Balance at 30 June 2021                                                              14,309                      1,872               16,181

Depreciation                                                                                                                                                      
Balance at 1 July 2020                                                                         81                      1,849                 1,930
Depreciation                                                                                           9                           49                      58
Disposals                                                                                                –                        (86)                    (86)

Balance at 30 June 2021                                                                     90                      1,812                 1,902

Carrying amounts                                                                                                                                              
At 1 July 2020                                                                              14,228                         111               14,339

At 30 June 2021                                                                           14,219                           60               14,279

ANNUAL REPORT

2 0 2 1

38

REX MINERALS LTD

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

10.       PROPERTY, PLANT AND EQUIPMENT (CONTINUED)

                                                                                                 Land and                Plant and
                                                                                                 buildings              equipment                  Total
2020                                                                                                $000                       $000                  $000

Cost                                                                                                                                                                   
Balance at 1 July 2019                                                                  14,309                      1,958               16,267
Additions                                                                                                –                             2                        2

Balance at 30 June 2020                                                              14,309                      1,960               16,269

Depreciation                                                                                                                                                      
Balance at 1 July 2019                                                                         72                      1,794                 1,866
Depreciation                                                                                           9                           55                      64

Balance at 30 June 2020                                                                     81                      1,849                 1,930

Carrying amounts                                                                                                                                              
At 1 July 2019                                                                              14,237                         164               14,401

At 30 June 2020                                                                           14,228                         111               14,339

As at 30 June 2021, land and buildings were no longer held as security for the loan facility (2020: $14.110 million).
Refer to Note 22(b).

11.       TRADE AND OTHER PAYABLES

                                                                                                                                      2021                  2020
                                                                                                                                      $000                  $000

Current                                                                                                                                   
Trade payables                                                                                                                     57                      13
Accrued expenses                                                                                                               560                    331

Total current trade and other payables                                                                              617                    344

Total trade and other payables                                                                                          617                    344

12.       EMPLOYEE BENEFITS PROVISIONS

                                                                                                                                      2021                  2020
                                                                                                                                      $000                  $000

Current                                                                                                                                   
Annual leave                                                                                                                      442                    417
Long service leave                                                                                                             158                    188

Total current employee benefits provisions                                                                         600                    605

Non-current                                                                                                                            
Long service leave                                                                                                             115                      67

Total non-current employee benefits provisions                                                                  115                      67

Total employee benefits provisions                                                                                     715                    672

39

REX MINERALS LTD

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

13.       EQUITY

(a)        Movements in shares on issue:
                                                                         Date of               Number of                 Issue
                                                                             issue                      shares              price $                  $000

Opening balance at 1 July 2020                                                 309,674,882                                       197,953
Exercise of options                                       29/07/2020                   666,666                0.084                      56
Issue of shares                                             09/09/2020              60,606,062                0.165               10,000
Cost of share issue                                  09/09/2020                                                                           (597)
Issue of shares                                             05/10/2020                5,289,976                0.165                    873
Cost of share issue                                  05/10/2020                                                                             (19)
Exercise of options                                       16/02/2021                   333,333                0.084                      28
Conversion of HRCR                                    23/03/2021                5,000,000                0.037                    184
Exercise of options                                       23/03/2021                1,166,667                0.070                      82
Issue of shares                                             23/04/2021              39,583,334                0.240                 9,500
Cost of issue                                            23/04/2021                                                                           (558)

Closing balance at 30 June 2021                                               422,320,920                                       217,502

Opening balance at 1 July 2019                                                 287,234,215                                       196,269
Issue of shares                                             20/08/2019                9,353,849                0.090                    842
Exercise of options                                       19/09/2019                   250,000                0.063                      16
Exercise of options                                       15/10/2019                   100,000                0.063                        6
Exercise of options                                       17/10/2019                1,000,000                0.063                      63
Exercise of options                                       08/11/2019                   340,000                0.063                      22
Issue of shares                                             25/11/2019                   646,151                0.090                      58
Exercise of options                                       29/11/2019              10,750,667                0.063                    677

Closing balance at 30 June 2020                                               309,674,882                                       197,953

(b)        Movements in HRCR:
                                                                         Date of               Number of            Exercise                Expiry
                                                                             issue                       rights              price $                   date

Opening balance as at 1 July 2020                                               20,000,000                                                    
Conversion of HRCR                                    25/11/2019             (5,000,000)                        –        31/10/2024

Closing balance as at 30 June 2021                                             15,000,000                                                    

                                                                         Date of               Number of            Exercise                Expiry
                                                                             issue                       rights              price $                   date

Opening balance as at 1 July 2019                                                               –                                                    
Issue of HRCR                                             25/11/2019              20,000,000                        –        31/10/2024

Closing balance as at 30 June 2020                                             20,000,000                                                    

As announced to the ASX on 25 November 2019, the Company completed the acquisition of Hog Ranch Group
Pty Ltd and issued 20 million HRCR which convert to Rex shares on the outcome of the following milestones:

          a.

5 million HRCR on announcement by Rex to the 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
2Moz or higher of contained gold as defined by the 2012 JORC Code with respect to the Hog Ranch
Property and has a minimum grade of 0.4 g/t of gold in addition to a minimum tonnage of 100 Mt; and

          b.

15 million HRCR on announcement by Rex to the ASX by no later than 31 October 2024 of the Board
approving a decision to mine the Hog Ranch Property.

During the year, 5 million HRCR were converted to Rex shares on the achievement of milestone a. (the Mineral
Resource milestone) above, as announced to the ASX on 23 March 2021.

ANNUAL REPORT

2 0 2 1

40

REX MINERALS LTD

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

13.       EQUITY (CONTINUED)

(c)        Movements in in options on issue:
                                                                         Date of               Number of            Exercise                Expiry
                                                                             issue                    options              price $                   date

Opening balance as at 1 July 2020                                               14,100,000                                                    

Exercise of options                                       14/02/2019                (666,666)                0.084        31/01/2023
Issue of options                                              1/12/2020                5,000,000                0.175        30/11/2024
Exercise of options                                       14/02/2019                (333,333)                0.084        31/01/2023
Exercise of options                                         6/03/2020             (1,166,667)                0.070        29/02/2024
Issue of options                                            28/05/2021                   200,000                0.470        28/05/2025

Closing balance as at 30 June 2021                                             17,133,334                                                    

                                                                         Date of               Number of            Exercise                Expiry
                                                                             issue                    options              price $                   date

Opening balance as at 1 July 2019                                               15,824,017                                                    

Exercise of options                                       30/11/2015                (250,000)                0.063        30/11/2019
Exercise of options                                       30/11/2015                (100,000)                0.063        30/11/2019
Exercise of options                                       30/11/2015             (1,000,000)                0.063        30/11/2019
Exercise of options                                       30/11/2015                (340,000)                0.063        30/11/2019
Exercise of options                                       30/11/2015           (10,750,667)                0.063        30/11/2019
Lapse of options                                           30/11/2015             (1,383,350)                0.063        30/11/2019
Issue of options                                            06/03/2020              12,100,000                0.070        29/02/2024

Closing balance as at 30 June 2020                                             14,100,000                                                    

(d)        Movements in share based payment reserve:
                                                                                                       $000

Opening balance at 1 July 2020                                                          810
Share based payments – options                                                          276
Transfer from share based payments                                                 (240)

Closing balance at 30 June 2021                                                        846

Opening balance at 1 July 2019                                                          360
Share based payments – options                                                            84
Share based payments – HRCR                                                           713
Transfer from share based payments                                                 (347)

Closing balance at 30 June 2020                                                        810

           This share based payment reserve is used to recognise both the fair value of options issued to participants for

options granted which have not been exercised and the fair value of the HRCR.

14.       EMPLOYEE BENEFITS EXPENSE

                                                                                                                                      2021                  2020
                                                                                                                                      $000                  $000

Wages and salaries                                                                                                         1,956                 1,972
Share based payments                                                                                                       204                      56
Increase/(decrease) in liability for annual leave                                                                    25                    (45)
Increase/(decrease) in liability for long service leave                                                             19                      54

Total employee benefits expense                                                                                    2,204                 2,037

41

                                                                                     
                                                                                                                                              
REX MINERALS LTD

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

15.       INCOME TAX BENEFIT
           NUMERICAL RECONCILIATION BETWEEN TAX BENEFIT AND PRE-TAX ACCOUNTING LOSS

                                                                                                                                      2021                  2020
                                                                                                                                      $000                  $000

Loss before tax for the period                                                                                       (8,779)               (5,159)

Income tax benefit using the corporation tax rate of 30% (2020: 30%)                       (2,634)               (1,548)

Non-deductible expenses                                                                                                      78                    104
Other non-temporary differences                                                                                             –                    (13)
Effect of jurisdictional tax variances                                                                                  377                    168
DTA not recognised – other jurisdiction                                                                              879                         –
Net effect of tax losses not recognised                                                                             1,300                 1,289

Total income tax expense/(benefit) on pre-tax net loss                                                         –                         –

16.       LOSS PER SHARE

                                                                                                                                      2021                  2020
                                                                                                                                      cents                  cents

Loss per share                                                                                          
Basic loss per share                                                                                                       (2.36)                 (1.70)
Diluted loss per share                                                                                                     (2.36)                 (1.70)

           (a) Basic loss per share

The calculation of basic loss per share at 30 June 2021 was based on the loss attributable to ordinary
equity holders of $8.779 million (2020: $5.159 million) and a weighted average number of ordinary shares
outstanding during the financial year ended 30 June 2021 of 372,330,731 (2020: 304,017,870).

           (b) Diluted loss per share 

The calculation of diluted loss per share at 30 June 2021 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 17,133,334 at 30 June 2021.

17.       RECONCILIATION OF CASH FLOWS

           (a) Reconciliation of net profit to cash used in operating activities

                                                                                                                                      2021                  2020
                                                                                                        Note                       $000                  $000

Loss before tax for the period                                                                                       (8,779)               (5,159)
Adjustments for non-cash items:                                                               
      Depreciation                                                                                   10                           58                      64
      Share based payments                                                                13(d)                         276                      84
Adjustments for other items:                                                                     
      Borrowing costs                                                                                                           884                    282
      Other funds received                                                                                                         –                      15
      Foreign currency revaluation                                                                                        109                         –
      Gain on disposal of property plant and equipment                                                        (11)                         –

Operating loss before changes in working capital and provisions                                   (7,463)               (4,714)
(Increase)/decrease in receivables and prepayments                                                         (110)                    (15)
(Decrease)/increase in trade and other payables                                                                  273                    (66)
(Decrease)/increase in employee benefits                                                                              44                        9
(Decrease)/increase provisions                                                                                           (36)                         –

Net cash used in operating activities                                                                            (7,292)               (4,786)

ANNUAL REPORT

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42

                                                                                                               
                                                                                     
                                                                                                               
           
           
REX MINERALS LTD

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

17.       RECONCILIATION OF CASH FLOWS (CONTINUED)

           (b) Reconciliation of liabilities arising from financing activities to financing cash flows 

                                                                                                                                      2021                  2020
                                                                                                                                      $000                  $000

Opening balance at 1 July                                                                                               4,400                         –
Proceeds from borrowings                                                                                                      –                 4,400
Repayment of borrowings                                                                                             (4,400)                         –

Closing balance at 30 June                                                                                                    –                 4,400

18.       SHARE BASED PAYMENTS

           (a) Description of share based payment arrangements

During the financial year ending 30 June 2021, 5 million options were granted to a Director on 1 December
2020, expiring 30 November 2024. Options are exercisable at a price of 17.5 cents each and options will
vest in three equal tranches as follows: one third on 30 November 2021; one third on 30 November 2022
and one third on 30 November 2023. An additional 200,000 were granted on 28 May 2021, expiring 28
May 2025.  Options are exercisable at a price of 47 cents each and options will vest in three equal tranches
as follows: one third on 28 May 2022; one third on 28 May 2023 and one third on 28 May 2024. 

During the financial year ending 30 June 2020, 12.1 million options were granted to employees on 6 March
2020, expiring 29 February 2024. Options are exercisable at a price of 7.0 cents each and options will vest
in three equal tranches as follows: one third on 28 February 2021; one third on 28 February 2022 and one
third on 28 February 2023.

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) Measurement of fair values

The fair value of the unlisted options granted in 2021 were measured independently at the date of grant
based upon the Black-Scholes options pricing model. The inputs used in the measurement of the fair values
at grant date are as follows:

         Grant date                                                            1 December 2020         28 May 2021

         Fair value at grant date (cents)                                                   6.6                        19.3
         Exercise price (cents)                                                               17.5                        47.0
         Expected volatility (percentage)                                                   75                           80
         Option life (years)                                                                       3.5                          3.5
         Free interest rate (percentage)                                                  0.13                        0.28

           (c)

Option expense

                                                                                              2021                       2020
                                                                                              $000                       $000

Option expense                                                                          276                           84

Total recognised as share based payments                                 276                           84

           (d)

Outstanding options

At 30 June 2021, there were 17,133,334 unlisted options outstanding, 1,333,334 at an exercise price of
8.4 cents, expiring 31 January 2023; 10,600,000 at an exercise price of 7.0 cents, expiring 29 February
2024; 5,000,000 at an exercise price of 17.5 cents, expiring 30 November 2024 and 200,000 at an exercise
price of 47.0 cents, expiring 28 May 2025.

43

           
           
           
           
           
REX MINERALS LTD

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

19.       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

2021                                                                                                                              
Trade and other payables                                  617                     (617)                  (617)                         –
Borrowings                                                          –                            –                         –                         –

                                                                       617                     (617)                  (617)                         –

2020                                                                                                                              
Trade and other payables                                  344                     (344)                  (344)                         –
Borrowings                                                   4,400                  (4,400)               (4,400)                         –

                                                                    4,744                  (4,744)               (4,744)                         –

           (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:

                                                                                                                             2021                  2020
                                                                                                                             $000                  $000

Cash and cash equivalents                                                                                      9,682                 2,990

Total cash and cash equivalents                                                                             9,682                 2,990

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 2021, 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)

                                                                         2021                  2020                  2021                  2020
                                                                         $000                  $000                  $000                  $000

Group                                                                                                                                                      
+1% (100 basis points)                                          97                      30                        –                         –
– 1% (100 basis points)                                       (97)                    (30)                        –                         –

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 (2020: nil).

ANNUAL REPORT

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44

           
           
           
           
           
           
           
                                                                        
                                                                       
           
           
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 South Australian Government has the authority to defer,
waive or amend its minimum expenditure requirements.

South Australia                                                                                                              2021                  2020
                                                                                                                                      $000                  $000

Not later than one year                                                                                                      712                    600
Later than one year but not later than five years                                                                 430                         –

Nevada, USA                                                                                                                  2021                  2020
                                                                                                                                      $000                  $000

Not later than one year                                                                                                        67                      72
Later than one year but not later than five years                                                                 869                 3,950
Later than five years                                                                                                     10,841               13,405

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 2021 (2020: $0.020 million).

22.       RELATED PARTIES

           (a) Parent and ultimate controlling party

Ownership Interest
                                                                    Country of                          
                                                               Incorporation                                                 2021                  2020

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%
Hog Ranch Group Pty Ltd                                 Australia                                                100%                 100%
Hog Ranch USA Pty Ltd                                   Australia                                                100%                 100%
Hog Ranch Minerals Incorporated                           USA                                                100%                 100%
CRHK01 Limited1                                          Hong Kong                                                        –                 100%

           1 Ceased business on 30 April 2020 and deregistered 9 April 2021.  

           (b)

Transactions with Key Management Personnel (KMP)

(i)

Loans to Directors

There were no loans advanced to Directors for the year ending 30 June 2021.

45

           
           
REX MINERALS LTD

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

22.       RELATED PARTIES (CONTINUED)

           (b)

Transactions with Key Management Personnel (KMP) (Continued)

(ii) Loans from Directors

During the year ended 30 June 2021, the Group repaid its Loan Facility and the associated interest in full.

The Loan Facility Agreement was for a total amount of $4.400 million from a group of lenders
(including four Directors), with a one off establishment fee of 2%, an interest rate of 10%, for a
period of 12 months using the Group’s freehold land as security. The period was subsequently extended
by 12 months to February 2022, all other terms remained the same.

The balances in relation to the related parties’ portion is as follows:

                                                                                                                     2021                  2020
                                                                                                                           $                        $

Balance at 1 July                                                                                   2,328,288                         –
Loan drawdown                                                                                                    –          2,250,000
Establishment fee                                                                                                 –               45,000
Interest charged                                                                                        371,712               78,288
Amount paid                                                                                       (2,700,000)             (45,000)

Balance at 30 June                                                                                              –          2,328,288

(iii) KMP compensation

KMP compensation comprised the following:

                                                                                                                     2021                  2020
                                                                                                                           $                        $

Short-term benefits                                                                                   966,949          1,050,430
Post-employment benefits                                                                            54,093               56,050
Share based payments                                                                               191,997               22,292
Other long-term benefits                                                                                6,227               40,240

                                                                                                             1,219,266          1,169,012

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 18 to 24.

There have been no changes to KMP between 1 July 2021 and the date of this report.

(iv) 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. 

Information regarding individual Directors’ and Executive Officers’ compensation are provided in the
Remuneration Report section of the Directors’ Report on pages 18 to 24.

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

                                                               2021                  2020                  2021                  2020
Transaction                                                   $                        $                        $                        $

IT services 1                                           54,337               75,727                         –                 9,000
Acquisition of Hog Ranch
Group Pty Ltd                                                 –             521,239                         –                         –

1 During the year, IT consulting services (2020: IT consulting) 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

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46

           
           
           
           
           
           
           
           
           
           
           
           
           
                                                         
                                                        
           
REX MINERALS LTD

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

23.       PARENT ENTITY DISCLOSURES

           As at, and throughout, the period ending 30 June 2021, the parent company of the Group was Rex Minerals Ltd.

                                                                                                                                      2021                  2020
                                                                                                                                      $000                  $000

Result of the parent entity                                              
Loss for the period                                                                                                       (4,360)               (3,297)
Other comprehensive income                                                                                                  –                         –

Total comprehensive loss for the period                                                                       (4,360)               (3,297)

Financial position of the parent entity at year end                                     
Current assets                                                                                                                 9,772                 3,078

Total assets                                                                                                                  31,658               20,667

Current liabilities                                                                                                            1,041                 5,334

Total liabilities                                                                                                               1,157                 5,437

Total equity of the parent entity comprising of                                          
Share capital                                                                                                              217,502             197,953
Share based payments reserve                                                                                            846                    810
Accumulated losses                                                                                                  (187,847)           (183,533)

Total equity                                                                                                                  30,501               15,230

           Parent entity contingencies

           The Parent entity’s contingencies are the same as the Group’s contingencies as detailed in Note 21.

24.       SUBSEQUENT EVENTS

           On 4 August 2021, the Company launched a $50 million two tranche placement. Tranche 1 raised $5.3 million
and settled on 10 August 2021 with Tranche 2, subject to shareholder approval at a General Meeting to be held
on 14 September 2021, to raise a further $44.7 million. 

           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

                                                                                                                                      2021                  2020
KPMG Australia                                                                                                                   $                        $

Audit services                                                                                                               47,000               47,500

           No non-audit services were provided in the current year.

47

                                                                                     
                                                                                     
                                                                                     
REX MINERALS LTD

DIRECTORS’ DECLARATION

1.

In the opinion of the Directors of Rex Minerals Ltd (the Company):

(a)

the consolidated financial statements and notes and the Remuneration Report in the Directors’ Report,
set out on pages 18 to 24, 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 2021 and of its performance

for the financial year ended on that date; and

(ii) complying with Australian Accounting Standards (including the Australian Accounting Interpretations)

and the Corporations Regulations 2001.

(b)

there are reasonable grounds to believe that the Company will be able to pay its debts as and when they
become due and payable.

2.

3.

The Directors have been given the declarations required by section 295A of the Corporations Act 2001from the
Chief Executive Officer and Chief Financial Officer for the financial year ended 30 June 2021.

The Directors draw attention to Note 2 to the consolidated financial statements, which includes a statement of
compliance with International Financial Reporting Standards.

Signed in accordance with a resolution of the Directors: 

Mr Richard Laufmann
Chief Executive Officer

Dated this 13th day of September 2021.

ANNUAL REPORT

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48

https://www.auasb.gov.au/admin/file/content102/c3/ar1_2020.pdf

ADDITIONAL
SHAREHOLDER
INFORMATION

For the year ended 30 June 2021

53

REX MINERALS LTD

ADDITIONAL SHAREHOLDER INFORMATION

Additional information required by the Australian Stock Exchange (ASX) Listing Rules and not shown elsewhere in this
report is set out below and the information was applicable as at 19 August 2021.

Distribution of ordinary shares

The number of shareholders, by size of holding:

                                                                      Total                                                                        % of 
            Range                                                                   Holders                                  Units              Issued Capital

1 – 1,000                                                                     612                              240,728                              0.05
1,001 – 5,000                                                           1,441                           4,193,387                              0.95
5,001 – 10,000                                                            854                           6,782,583                              1.54
10,001 – 100,000                                                     1,931                        69,169,889                            15.72
100,001 – 999,999,999                                               576                      359,761,636                            81.74

Total

                                                                     5,414                      440,148,223                          100.00

The number of shareholders holding less than
a marketable parcel:                                                                 925                                           

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.
11.
12.

Grand South Development Limited                                                   14,656,588                              3.33
Curious Capital Group Pty Ltd (Curious Capital A/C)                          7,608,470                              1.73
Zero Nominees Pty Ltd                                                                      7,547,940                              1.71
JP Morgan Nominees Australia Pty Limited                                       7,107,833                              1.61
S & S Olsen Pty Ltd                                                                           6,628,909                              1.51
United Overseas Service Management Ltd                                          6,622,390                              1.50
CS Third Nominees Pty Limited (HSBC Cust Nom Au Ltd 13 A/C)     6,132,222                              1.39
UBS Nominees Pty Ltd                                                                      5,856,156                              1.33
Panjeta Investment Group Pty Ltd (Panjeta Family Group A/C)          5,600,000                              1.27
Silver Rayne Pty Ltd                                                                          5,376,909                              1.22
Stone Poneys Nominees Pty Ltd (Chapman Super Fund A/C)              5,332,540                              1.21
Laufmann Longterm Investments Pty Ltd
(Laufmann Super Fund A/C)                                                              4,919,893                              1.12
BNP Paribas Nominees Pty Ltd (IB AU Noms Retailclient DRP)        4,521,646                              1.03
13.
Citicorp Nominees Pty Ltd                                                                 4,095,089                              0.93
14
BNP Paribas Noms Pty Ltd (DRP)                                                    4,027,456                              0.91
15.
16.
BT Portfolio Services Limited (Warrell Holdings S/F A/C)                  3,616,604                              0.82
17. Mrs Natalie Laufmann                                                                       3,500,000                              0.80
18. Mrs Vickie Jane Jones                                                                        3,476,594                              0.79
HSBC Custody Nominees (Australia) Limited – A/C 2                         3,439,498                              0.78
19.
ZW 2 Pty Ltd                                                                                    3,300,000                              0.75
20.

Total

                                                                                                     113,366,637                            25.76

Substantial shareholders

There is currently one substantial shareholder lodged with the Company:

                      Ellerston Capital Limited                                                                 26,448,494                              6.26

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

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54

            
            
            
REX MINERALS LTD

NOTES

55

REX MINERALS LTD

NOTES

ANNUAL REPORT

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56

ANNUAL REPORT

A B N 12 124 960 523

Designed and Produced by
Celtink Creative info@celtink.com

STAY IN TOUCH

A  68 St Vincent Highway, Pine Point,

South Australia 5571 
T  1300 822 161 (Australia)
T  +61 3 9068 3077 (International)
P  PO Box 3435, Rundle Mall,

South Australia 5000
E  rex@rexminerals.com.au
W  www.rexminerals.com.au

ABN 12 124 960 523