ANNUAL REPORT
COPPER SA I GOLD NEVADA
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ANNUAL REPORT
CORPORATE DIRECTORY
DIRECTORS
Mr Ian Smith (Non-Executive Chairman)
Mr Richard Laufmann (CEO and Managing Director)
Ms Amber Rivamonte (Executive Director)
Mr Greg Robinson (Non-Executive Director)
Mr Andrew Seaton (Non-Executive Director)
SHARE REGISTRARS
d
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 (0)3 9068 3077 (International)
Email:
rex@rexminerals.com.au
Website: www.rexminerals.com.au
OPERATION LOCATIONS
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
HOG RANCH
NEVADA USA
HILLSIDE
SOUTH AUSTRALIA
ANNUAL REPORT 30 JUNE
TABLE OF CONTENTS
LETTER FROM THE CHAIRMAN
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
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REX MINERALS LTD
LETTER FROM THE CHAIRMAN For the year ended 30 June 2022
Dear Fellow Shareholder,
Over the last year, we have significantly advanced our stated objectives of building the size and capacity of the team
working on Hillside while optimising the Project’s pre-development and finance profile. The understanding of the regional
context and potential upside of Hog Ranch has also been significantly expanded.
The many positives that have been delivered are within a context of ongoing pandemic impacts and a challenging macro
environment. Not only have we retained the impressive talent pool that is resident within Rex Minerals, but we have also
attracted additional experienced personnel to help place the Company and its Projects in a position where we can call on
a quite unique team of mine builders and operators.
Positive relations with local indigenous groups, surrounding land holders, regional communities and government agencies
are at the forefront of how we go about our business and are ingrained in our core understanding of how we develop
sustainable Projects that deliver positive outcomes for all stakeholders. The people we appoint are judged both on their
professional experience and ability to further everyone’s interests in an open and transparent manner, with ongoing
inclusive dialogue. I am happy to state that our representatives portray all of the positive attributes a modern progressive
mining company should portray.
Let us revisit some of the additional positives for Rex Minerals that complement our unique team and approach to doing
business. The Hillside Copper-Gold Project in South Australia currently is Australia’s third largest copper Ore Reserve that
recent drilling and geophysical works suggest has further upside. The Hog Ranch Gold Property in Nevada USA, currently
has a Mineral Resource of 2.3 million ounces of gold that recent drilling and geochemical work also suggest further
upside. Also, we have over $40 million cash at bank and zero debt.
We have the team, approach and resources for the next stage. Each of our Projects has the ability to be a "company
maker" in its own right, with Hillside pursuing an updated execution plan that accommodates the current environment
through optimised plans for development and production.
Our positive outlook would not be possible without the ongoing support of our Shareholders. We are extremely grateful for
your sharing of our vision that our Projects present unique opportunities for the benefit of all stakeholders. Thank you.
Yours sincerely,
Mr Ian Smith
Chairman
Photo 1 : Hillside Project Location.
ANNUAL REPORT 2 0 2 2
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REX MINERALS LTD
REVIEW OF OPERATIONS For the year ended 30 June 2022
CORPORATE
Rex Minerals Ltd (Rex or the Company) is an investment in copper and gold in two world-class locations.
During the year in review, Rex raised a total of $50 million, via a two-tranche Placement from professional and
sophisticated investors in Australia and overseas at 30.0c per share, following approval by shareholders. Proceeds from
the Placement are being used to fund and advance the Hillside Copper-Gold Project (Hillside) and the Hog Ranch Gold
Property (Hog Ranch).
Hillside and Hog Ranch are each significant assets in their own right.
They are underpinned by a strong demand outlook and healthy
commodity price forecasts, especially for copper.
Taking a macro view, the recent transition to a global inflationary cycle
with a possible trailing recessionary phase now dominates the global
agenda. In addition, the COVID-19 disruption, both real and perceived,
continues to impact almost every industry. Adding to this is an
irreversible commitment to setting targets for energy transition. There
can be no question that in a macro sense, we are at the dawn of a period
of enormous structural adjustment.
For the Company, these challenges have driven our focus on future-
proofing and implementing adjustments to deliver improved metrics
at Hillside.
Our plans are being refined and updated whilst planning and building
in the platform for the future we all envision.
Photo 2 : Non-Executive Directors, Greg Robinson (L)
and Andrew Seaton (R) at Hillside.
The Rex Board is dynamic, active and fit for purpose, comprising three Non-Executive, and two Executive Directors.
A considerable number of changes have also taken place in the management team as we move towards a Hillside
development decision. Key management, led by Jason Schell (EGM, SA), are being recruited in South Australia. Most of
these people are local and they bring a depth of skills to our team. In addition, Peter Bird commenced in the role of EGM
Investor Relations and Business Development on 1 March 2022.
Key strategic partnerships, covering the two key operational and technical facets of the business being mining and
processing have also been entered into. The involvement of Thiess and Ausenco ensures that the very best our industry has
to offer are working with Rex to achieve our key milestones and manage our key risks. Key milestones are outlined below.
KEY MILESTONES
Doubled the Ore Reserves at Hillside to 1 million tonnes of copper Jul 2021
Discovered a new deposit at Hog Ranch Jul 2021
Exciting drilling results received from Hog Ranch Jul 2021-2022
Raised a total of $50 million via a two-tranche Placement Aug 2021
Commenced trading on the US-based OTCQB Venture Market Sep 2021
Proven coarse particle flotation - a viable opportunity to increment Hillside production Oct 2021
Appointed key senior Executives and management team Nov 2021-2022
Andrew Seaton, a South Australian, joined the Board Dec 2021
Completed 3D seismic survey at Hillside Jun 2022
Established offices in both Adelaide and Ardrossan, South Australia Feb 2022
Partnered with Ausenco for engineering and design at Hillside Mar 2022
Section 49 approvals completed for the road and highway diversions at Hillside Jun 2022
Hog Ranch Plan of Operations for exploration submitted to regulator Aug 2022
Letter of Intent (LOI) signed with Thiess Mining Services Aug 2022
Completed a large-scale soil survey on the ground at Hog Ranch Aug 2022
3
REX MINERALS LTD
REVIEW OF OPERATIONS (Continued) for the year ended 30 June 2022
CORPORATE (CONTINUED)
In order to meet global decarbonisation commitments, professional and individual investors will need to recognise that a
significant and sustained investment needs to be made. Part of this investment is required in those companies, within the
mining industry, who have commodities that can contribute positively to the decarbonisation process. As illustrated in
Figure 1, Wood Mackenzie estimates that approximately US$400B is required to meet the 2030 targets “It all seems
implausible at best, and impossible at worst1”.
90% REDUCTION
73% REDUCTION
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40
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20
10
0
2009
2011
2013
2015
2017
2019
2021
2023
2025
2027
2029
Aluminium
Lead
ETO Requirement
Copper
Lithium
AET 1.5 Requirement
Gold
Nickel
Iron Ore
Zinc
Figure 1 : Metals and mining committed investment capex and requirements (US$bn).
Vision, purpose, values
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: “to 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.
1Source – Wood Mackenzie Corporate Service. “Have Miners missed the boat to invest and get ahead of the energy transition” – 11 July 2022.
ANNUAL REPORT 2 0 2 2
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REX MINERALS LTD
REVIEW OF OPERATIONS (Continued) for the year ended 30 June 2022
CORPORATE (CONTINUED)
Sustainability
Rex has always worked to understand the issues of importance for
local communities and regions more broadly, where we operate.
We designed Hillside from the outset to protect and promote the
environment, social and economic values of the region. The same
approach is being taken at Hog Ranch.
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 and revision of existing policies to reflect
the Company’s ambition, progress and contribution to a greener, more
inclusive and equitable global future.
As a Company, we will continue to evolve, as will our strategy and
execution, as we set out our sustainability commitments, aligned with
relevant industry requirements and frameworks, including the UN
Sustainable Development Goals, and establishing more defined and
rigorous targets for ESG performance.
Hillside’s approved Mineral Lease and Program for Environment
Protection and Rehabilitation (PEPR) set out the Project’s license
conditions and the Company plans to mitigate its environmental and
social impacts. This process has taken into consideration the needs of
local stakeholders and outlines in detail how the Company will
manage the development and operations of Hillside to achieve the
outcomes sought by the Company and its stakeholders.
In moving to development in South Australia, the Company is
progressing its strategy for sustainable development
which 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.
At Hog Ranch, a different regulatory environment has seen us spend
three years on extensive flora, fauna and archaeological baseline
studies to allow us to complete and submit an exploration Plan of
Operations to the relevant regulatory body.
OUR COMMITMENT
Rex strongly believes in the
contribution metals, hence mining,
make to modern society, with the
growth in renewable technologies
further increasing the demand for
metals such as copper.
While mining also contributes
significantly to employment and State
and National economics, responsible
mining can provide sustainable
benefits for the communities in which
it occurs. Rex is committed to working
in partnership with the local
stakeholders and communities to
identify and achieve sustained
community benefits.
Rex commits to being a responsible
member of the communities in which
we operate while delivering value to
all stakeholders through:
• maintaining an economically
sustainable and responsible
business
•
•
•
•
open and inclusive stakeholder
engagement
contributing to the local,
regional, state and
national economy
partnering with local
stakeholders and communities
to enhance community
capacity, and
contributing to local
environmental sustainability.
5
REX MINERALS LTD
REVIEW OF OPERATIONS (Continued) for the year ended 30 June 2022
CORPORATE (CONTINUED)
Gender, diversity and inclusion
The Board has established a stand-alone gender, diversity and inclusion policy. The Company achieved its measurable
objectives for gender diversity of maintaining female representation of at least 25% of the total workforce including
senior management. At 30 June 2022, female representation was 35% of the total workforce, with women comprising
20% of the Rex Board and 40% of senior Executives.
Climate change
The Company understands that climate change is a significant global challenge and that as a responsible corporate citizen
it must identify, assess, action and report its response to climate change challenges. Rex’s 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 our Projects progress.
Our focus on copper as a critical mineral input to decarbonisation, electrification and green technologies sits at the core.
100,000
10,000
500
MOBILE
PHONES
LAPTOP
COMPUTERS
AIR
CONDITIONING
UNITS
50
CARS
10
HOMES
At 6Mtpa process plant
throughput, Hillside will
generate the equivalent of
1,813,366t of carbon
dioxide throughout Stage 1.
This is made up of 48%
liquid fuels, 50% electrical
power (grid) and 1-2%
explosives. This equates to
approximately 3.6t of CO2
for every tonne of copper
dispatched in concentrate.
1 TONNE
OF COPPER
IN ELECTRICAL SYSTEMS CAN DELIVER
LIFETIME SAVINGS OF 100 TO 7,500 TONNES OF
CO2 EMISSIONS AND €24,000 TO €2.4 MILLION.
Electricity will be supplied
from the South Australian
power grid which currently
runs at around 60% sourced
from renewable energy.
With an annualised copper production rate of at least 36ktpa, the positive impact of a project like Hillside can be
illustrated in Figure 2. As each of these consumer staples, such as cars, become more energy efficient, decarbonisation
metals like copper have a very positive role to play. There is currently no “substitute” metal for copper, so it remains
critical in this process.
Figure 2 : Based on data from environdec, European Commission and Leonardo ENERGY.
Hillside will, where possible, make extensive use of existing infrastructure. Included in this will be housing, highways and
ports – hence minimising any significant additional carbon footprint associated with the construction of new infrastructure.
Rex is exploring 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 by road) 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 now the third largest copper Reserve in Australia, with a Resource
that currently contains 2Mt of copper (Cu) and 1.4Moz of gold (Au).
Hillside’s Stage 1 Feasibility and Development Plan, as reported in July
2020, is being updated and finalised in readiness for financing and a Board
approval for its Final Investment Decision (FID).
SOUTH AUSTRALIA
Prominent Hill
Gawler
Craton
Olympic Dam
Carrapateena
HILLSIDE
PROJECT
Adelaide
ANNUAL REPORT 2 0 2 2
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REX MINERALS LTD
REVIEW OF OPERATIONS (Continued) for the year ended 30 June 2022
HILLSIDE PROJECT – SOUTH AUSTRALIA (CONTINUED)
Hillside’s mining and processing is essentially low risk and conventional. Rex has partnered with Ausenco for the provision
of engineering and design services in relation to Hillside. On the processing side, the basis for the updated 2022 Study is to
maintain a start-up nominal plant feed rate of 6Mtpa, with primary crushing and stockpile reclaim capability for up to
8Mtpa. In the remainder of the processing plant, Ausenco has undertaken further equipment debottlenecking and updated
design margins on mechanical equipment in order to achieve instantaneous volumetric flowrates equivalent to 8Mtpa,
allowing for future increases in plant throughput.
Using this strategy, our plan for a Stage 1, beginning at 6Mtpa, can be significantly increased to closer to 8Mtpa once the
pre-strip and early stages of mining are underway.
In addition, successful coarse particle flotation test work earlier this year, demonstrated that our ore is very amenable to
HydroFloat technology and offers us the opportunity to further increase annual copper production. We are factoring into
our plans and designs the possibility of subsequently increasing throughput into Stage 2. Hence, the production rate could
then move from around 8Mtpa to closer to 10Mtpa, whilst maintaining similar copper recoveries.
All of these changes have potential to translate into numerous benefits for Rex and Hillside, including increased mill
capacity/production rate, reduction in grind power and energy savings per tonne, significant improvement to the
management of tailings and reduction in grind media.
Combined, these design considerations significantly contribute to
future proofing, and improvements to environmental, power and
carbon efficiency.
Aligned with Australia’s desire to pivot to a more environmentally
sensitive and energy efficient nation, the fact that we are in close
proximity to sealed highways, ports, renewable power, as well as a
population base, Hillside offers compelling national interest advantages
compared with equivalent projects in far less attractive locations.
We have engaged a client team to assist with arranging bank finance
and concentrate marketing options, and we have signed a number of
banking groups and potential offtake partners under Confidentiality
Agreements.
Building a first-class South Australian operational team is essential,
and Rex has continued to build the owner’s team and its capacity to
deliver the next phase of development. These appointments are crucial
and coincide with the opening of our offices in Adelaide and Ardrossan.
Key appointments include:
Jason Schell, our new Executive General Manager, South Australia.
Jason is a senior executive with extensive operational expertise across
a career spanning over 30 years in mining and mineral processing
(copper-gold-silver-uranium).
Mike Roberts was appointed Chief Procurement Officer in November
2021. Mike has joined to lead Rex’s pre-development program
procurement requirements. Over the past 20 years, Mike has worked
with large-scale complex organisations to maximise commercial
outcomes and deliver sustainable business improvements.
On 21 April 2022, Ron Douglas stepped down as a Director of Rex to
focus on his role to drive the engineering, procurement and construction
services for the process plant and associated infrastructure at Hillside.
Photo 3 : Rex’s community office located in Ardrossan,
Yorke Peninsula.
Graham Teale has also joined the Rex team. Graham has 45 years’
experience in mineral exploration, mining and as a research geologist.
Photo 4 : Graham Teale at Hillside.
Processing
Rex has partnered with Ausenco for the provision of 2022 Definition Phase Study (DPS) services for the Hillside
processing plant and associated infrastructure. The purpose of Ausenco’s 2022 DPS work is to update the capital and
operating estimates with the current market costs for major equipment and materials.
7
REX MINERALS LTD
REVIEW OF OPERATIONS (Continued) for the year ended 30 June 2022
HILLSIDE PROJECT – SOUTH AUSTRALIA (CONTINUED)
Mining
Rex has concluded, following a tender evaluation, that a mining contractor model presents many benefits including
opportunities to:
(cid:129)
(cid:129)
alleviate the tight schedule of long lead capital items such as excavators and haul trucks, and
leverage experienced management and workforce with well-developed operational procedures.
This is particularly important given the tight market for equipment and personnel that has been impacted by the
COVID-19 pandemic.
Rex is pleased to have secured a strategic alliance with Thiess by entering into a non-binding Letter of Intent (LOI) which
will see the companies work together to deliver an optimal mining solution for Hillside. Thiess is an outstanding Mining
Services partner and brings to the table a global scale capacity to execute, whilst mitigating critical risks for a growing
mining company with a large-scale greenfield development.
Infrastructure
Substantial progress has been made on the infrastructure work programs. Works commenced with the appointment of
land valuers, specialist design engineers, surveyors, geotechnical engineers and the appointment of infrastructure project
managers.
Roads – Tonkin Consulting was engaged to complete the road realignment designs to comply with the South Australian
Department for Infrastructure and Transport’s (DIT) current standards. This road design process has now been approved
to the 100% design standard and has been signed off by DIT. The deposited plans of division were submitted to the Land
Titles Office and approved in early June, which satisfied the Section 49 approval requirement deadline of 30 June 2022.
Electrical – Planning associated with Hillside’s power infrastructure has been conducted with ElectraNet (132kV
infrastructure) to renew the Connections Enquiry Response documentation as a pre-requisite to establishing a
Transmission Connection Agreement (TCA). The formal Master Term Sheet has been agreed. ElectraNet has completed
the Planning Assessment Study in order to develop a scope for the Power System Simulator for Engineering (PSSE)
facilities model. Proposals have been sought from independent consultants (on the ElectraNet prequalified list) to develop
the facility model.
Regular planning meetings are being held with SA PowerNetworks on infrastructure relocation and the provision of
construction power and borefield power.
Water – SA Water has authorised Rex to apply for a connection for a maximum of 56kl per day to be drawn from the
existing main. SA Water provided several options to make sufficient water available for the Hillside mine and the study and
costing was produced in June 2022. Rex has also sought Reverse Osmosis plant solutions, using sea water, to provide
sufficient water for the process whilst maintaining the SA Water 56kl per day for site potable water use.
Updated Hillside Ore Reserves estimate
On 20 July 2021, Rex announced an expanded Ore Reserve based on a larger Stage 2 open pit, which effectively increases
the total Ore Reserves at Hillside from 509kt copper (Cu) to 988kt Cu for an increase of 94%.
The Ore Reserves estimate for the Hillside Project as at July 2021 is 181.6Mt @ 0.54% Cu and 0.14g/t gold (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.
ANNUAL REPORT 2 0 2 2
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REX MINERALS LTD
REVIEW OF OPERATIONS (Continued) for the year ended 30 June 2022
HILLSIDE PROJECT – SOUTH AUSTRALIA (CONTINUED)
Updated Hillside Ore Reserves estimate (Continued)
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.
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.
9
REX MINERALS LTD
REVIEW OF OPERATIONS (Continued) for the year ended 30 June 2022
HILLSIDE PROJECT – SOUTH AUSTRALIA (CONTINUED)
Expanded Geological Potential of Hillside
Rex commenced in January 2022, a 3D seismic survey over
the broader Hillside Project area which was designed to
identify key geological features, particularly structures and
some important host rocks, both surrounding and at greater
depths to the current Mineral Resource and Open Pit designs.
A range of features have been identified based on the results
of the 3D seismic survey, many of which could imply expanded
potential to the existing 2Mt copper Mineral Resource. The
Resource drilling information has yet to close out the copper
mineralisation and extensions to the important host rocks and
structures at Hillside are considered likely to continue at
depth (Figure 3).
At shallow levels, down to 500m below the surface, the 3D
seismic data match the existing geological interpretation and
Mineral Resource which is also where the majority of the
drilling information exists.
Beyond 500m down to substantial depths of possibly over
1,300m, the 3D seismic data suggests that the host rock
geological sequence and repeats to the controlling structures
appear to exist. There is also some indication that important
controlling structures are increasing in strength at deeper
levels, beyond the existing drilling information (Figure 4).
Further to the interpretation that ongoing extensions to the
copper mineralisation appear to be likely at Hillside, there is
also some evidence of a large body at depth which is
potentially an important source for the metals that exist at
Hillside (refer ASX Release 7 June 2022).
Photo 5 : Winner AusIMM Adelaide Branch photo competition
of iridescent chalcopyrite from Hillside, Dr Richard Lilly.
Photo 6 : HiSeis team–Danni Denton, Maegs St Lawrence and
Jude Watson–performing 3D seismic survey at Hillside.
Figure 4 : Cross section at Hillside with interpreted information from the recent 3D seismic survey.
ANNUAL REPORT 2 0 2 2
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REX MINERALS LTD
REVIEW OF OPERATIONS (Continued) for the year ended 30 June 2022
HILLSIDE PROJECT – SOUTH AUSTRALIA (CONTINUED)
Health, Safety, Environment (HSE)
There were no incidents at Hillside involving people, property, or the environment during the reporting period. There were
no complaints or grievances raised by the local community or other stakeholders during the reporting period.
The Company has undertaken a number of activities which will ensure compliance with both our Mineral Lease and PEPR
conditions including selection of environmental monitoring equipment to log air quality, noise, vibration and air
overpressure data; working with local residents to establish a rainwater tank water monitoring system; and development of
HSE requirements for our contractors.
Rex is engaging with our local community. For example, the Company has recently placed a work experience student from
the Ardrossan High School, who provided valuable assistance to a soil survey being undertaken at that time. We have also
identified sustainable community partnerships to assist with native seed harvesting and plant propagation.
Through our involvement with the Playford Trust in SA, we are working with our Scholarship student (Chemical Engineering)
to complete kinetic test work using oxygen cells. We are also conducting a field trial to establish a classification system for
subsoil that will maximise our rehabilitation outcomes.
Key to all our activities is our continued work on promoting internal discussions and checks regarding the integration of
sustainability principles and ESG in our design, and establishing methodologies to provide Project HSE updates to all
relevant stakeholders.
Community
As we establish our development and operational presence in South Australia, both in Adelaide and Ardrossan, Rex
remains the only ASX company to have its registered office located on the Yorke Peninsula. This is a small but significant
outcome that speaks to the very essence of what nation building development is all about.
This forward-facing presence will ramp up as development proceeds. Locally, Hillside will contribute significantly to the
SA Government’s plans in establishing the State as a world-leading copper precinct, via its Copper Strategy.
One of our important engagement platforms is the ongoing community consultative group, “Hillside Mine Community
Voice” (HMCV). This independently chaired group has been instrumental in working with Rex to consult and navigate our
approvals through to the development phase. After many years of cooperation, an independent review of the group was
conducted by South Australian-based strategic advisory group, Consentium.
Following this review, in November 2021, HMCV members voted to adopt the recommendations and establish an interim
committee to oversee the formation of a new community consultative group, to work with Rex as it enters the construction
and development stage of the Hillside Mine.
The HMCV Chair, Mr Phil Tyler, expressed his appreciation to the members – all volunteers – who spent many hours
representing their local community organisations. He said: “Yorke Peninsula should be very proud of its dynamic
community, and I am privileged to have been involved in leading the HMCV during this stage.”
The interim committee has now been established with updated terms of reference. It has commenced the recruitment of
new members for the Hillside Mine Community Consultative Committee (HMCCC).
SOUTH AUSTRALIAN TENEMENT SCHEDULE at 30 June 2022
Location
Lease Status
Area Type
Current Area
Date
South Australia
Tenement
EL65311
EL64971
EL6515
EL59811
EL61361
EL61431
EL6189
EL6245
EL6455
ML6438
EML64391
MPL146
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
km2
km2
km2
km2
km2
km2
km2
km2
km2
Ha
Ha
Ha
1Renewal documentation submitted to the South Australian Government and currently being processed.
21
509
257
68
91
51
328
1,091
74
2,998
225
94
09/06/2022
27/07/2022
20/09/2022
22/06/2022
19/03/2022
15/04/2022
01/08/2022
01/08/2022
04/11/2021
15/09/2035
15/09/2022
15/09/2035
11
REX MINERALS LTD
REVIEW OF OPERATIONS (Continued) for the year ended 30 June 2022
HOG RANCH – NEVADA, USA
Drilling
A number of drilling campaigns were
completed during the financial year
at Hog Ranch at all three of the main
project locations of Krista, Bells and
Airport/Cameco. New discoveries
were made at Airport in addition to
further extensions to the gold
mineralisation confirmed at Bells
and Krista.
Drilling activities were delayed in
2021 due to a lack of drilling
contractor availability. The long
turnaround times at the Nevada
laboratories have also had an impact
on the drilling program over the
course of the year, these have started
to improve towards the end of the
financial year.
Further work at Hog Ranch included
several soil sampling test programs
which were very successful in
highlighting the potential for regional
gold in soils, when combined with
some key pathfinder elements, to
show the likely position for further
gold mineralisation. This has
prompted Rex to commence a large
regional soil sampling campaign over
the entire 79km2 area of Mining
Claims held by Rex at Hog Ranch
(refer ASX Release 30 March 2022).
Drilling Results Summary
Results from an earlier 3D Induced
Polarisation (IP) survey over the
Airport area identified the potential
for some structures that were
interpreted away from the previously
known gold mineralisation. Testing of
a number of these potential
structures resulted in the discovery of
significant gold mineralisation at two
new locations from drill holes HR21-
010 and HR21-012 (Figure 7 and
Figure 8). Refer ASX Releases 26
July 2021 and 27 August 2021.
ANNUAL REPORT 2 0 2 2
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12
Figure 5 : Local geology of the Cottonwood Creek Caldera.
Figure 6 : New datasets show overlapping evidence for large-scale
epithermal alteration.
REX MINERALS LTD
REVIEW OF OPERATIONS (Continued) for the year ended 30 June 2022
HOG RANCH – NEVADA, USA (CONTINUED)
Drilling Results Summary (Continued)
At both Bells and Krista, drill holes were completed which continue to identify extensions to the previously defined gold
mineralisation and, in some cases, show better gold grades than were otherwise indicated by the historical drill hole data
(refer ASX Releases 2 March 2022 and 19 July 2021).
Figure 7 : Plan view of the drilling completed at the Airport target area.
Photo 7 : Simon Meldrum on site at
Hog Ranch.
Figure 8 : Airport Project cross section (see Figure 7 for relative location) highlighting the drilling results from a new
discovery initially intersected in drill hole HR21-012.
13
REX MINERALS LTD
REVIEW OF OPERATIONS (Continued) for the year ended 30 June 2022
HOG RANCH – NEVADA, USA (CONTINUED)
Drilling Results Summary (Continued)
A summary of the more noteworthy Hog Ranch drill intersections returned over the year is shown in Table 3.
Location
Krista
Bells
Airport
Airport
Airport
Drill Hole
Number
HR22-018
including
including
HR21-023
including
HR21-008
including
including
HR21-010
including
HR21-012
including
including
From
(m)
0
44.2
137.2
12.2
74.6
7.6
18.3
89.9
94.5
143.3
54.9
57.9
88.4
To
(m)
147.8
89.9
141.7
141.7
103.6
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))
147.8
45.7
4.5
129.5
29
111.3
13.7
10.7
114.3
36.6
56.4
12.2
4.6
~104
~32
~3.2
~116
~26
~96
~12
~9
~51
~11
~4.1
0.62
1.06
2.42
0.55
0.98
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 keeping with our strategy of building capability in the management team James (Jim) Carver has joined the Company
as Vice President of Exploration at Hog Ranch. Jim has over 35 years’ experience conducting successful exploration,
discovery and development of gold deposits internationally and in the US. Jim left Marigold and SSR Mining as their
Resource Manager (US) “for an opportunity to work with the Hog Ranch and Rex teams on this outstanding property.”
NEVADA, USA TENEMENT SCHEDULE at 30 June 2022
As at 30 June 2022, 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 County
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
ANNUAL REPORT 2 0 2 2
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14
REX MINERALS LTD
REVIEW OF OPERATIONS (Continued) for the year ended 30 June 2022
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.
15
REX MINERALS LTD
DIRECTORS’ REPORT For the year ended 30 June 2022
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 2022
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. He also serves as a member of the Audit Committee and
the 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.
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 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 Goldfields was
taken over by Lihir Gold.
Previously, Richard was the general manager of Gold for WMC Resources, 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 2
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16
REX MINERALS LTD
DIRECTORS’ REPORT (Continued) for the year ended 30 June 2022
Name, qualifications and
independence status
Experience, special responsibilities and other directorships
Ms Amber Rivamonte
Ms Amber Rivamonte was appointed as an Executive Director on 1 June 2021.
Chief Financial Officer
and Executive Director
of Finance
(CPA;
B.Bus(Acc);
MAICD)
Mr Greg Robinson
Independent Non-
Executive Director
(B.Sc(Hons);
MBA;
MAICD)
Mr Andrew Seaton
Independent Non-
Executive Director
(BE (Chem) Hons;
Grad Dip Bus Admin;
GAICD)
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). Ms Rivamonte 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 Greg Robinson was appointed as a Director 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) (Chairman of
the Audit Committee).
He is the former managing director & chief executive officer of Newcrest Mining
Limited (including six years as CFO & Finance Director)and former chief executive
officer of Lattice Energy Limited. Prior to joining Newcrest, Greg was on the
executive committee of and held senior executive roles in the Petroleum and Energy
Division of BHP (including five years as CFO) 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.
Mr Andrew Seaton was appointed as a Director on 1 December 2021. He is
Chairman of the Remuneration Committee and a member of the Audit Committee.
Andrew has over 30 years’ business experience across a range of finance, engineering,
project management, investment banking and senior executive roles. Andrew is
currently the Managing Director and Chief Executive Officer of Australian Naval
Infrastructure, and a Non-Executive Director of Strike Energy Ltd, Homestart
Finance Ltd and Hydrocarbon Dynamics Ltd.
Andrew was previously CFO of Santos Limited, Australia’s largest producer of
domestic natural gas and a key supplier of LNG into Asia. During his time with
Santos, the company expanded its LNG portfolio to include interests in Darwin LNG,
PNG LNG and Gladstone LNG. Prior to this he worked in investment banking with
Merrill Lynch in Melbourne and New York across a broad range of advisory, M&A,
equity and debt capital markets transactions, and with NAB in corporate and
institutional banking. His early career included process engineering and project
management roles across upstream oil and gas and petrochemicals.
The following persons were Directors of the Company at any time during the financial year. There have been no new
Directors appointed since the end of the financial year to the date of this report.
Mr Ian Smith
Mr Richard Laufmann
Ms Amber Rivamonte
Mr Greg Robinson
Mr Andrew Seaton – appointed 1 December 2021
Mr Ron Douglas – retired 21 April 2022
17
REX MINERALS LTD
DIRECTORS’ REPORT (Continued) for the year ended 30 June 2022
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 Smith
Mr Richard Laufmann1
Ms Amber Rivamonte1
Mr Greg Robinson
Mr Andrew Seaton
Former
Mr Ron Douglas
A
6
6
6
6
3
5
B
6
6
6
6
3
5
A
2
2
2
2
2
2
B
2
2
2
2
2
2
A
1
1
1
1
1
–
B
1
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 attends meetings as appropriate by invitation.
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 2022 and was approved by the Board on 9 September 2022.
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) At Hillside:
>
>
>
>
>
(cid:129) At Hog Ranch:
>
>
>
>
(cid:129) Continued to explore options for our highly prospective Iron Oxide Copper Gold (IOCG) tenements in South Australia.
Continued with infrastructure development work programs
Tendered and appointed Ausenco and Thiess to partner in the development
Began the updated and final feasibility costing for financing
Engaged marketing and finance specialists, and
Opened new offices in Adelaide and Ardrossan to facilitate the growing team of new appointments.
Completed three years of baseline studies
Submitted an exploration Plan of Operations to the regulatory body
Continued exploration activities on site, and
Added depth to the exploration team.
ANNUAL REPORT 2 0 2 2
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18
REX MINERALS LTD
DIRECTORS’ REPORT (Continued) for the year ended 30 June 2022
OPERATING AND FINANCIAL REVIEW
The income statement shows a loss after tax of $12.8 million (2021: $8.8 million) for the year. The Group has no debt.
As at 30 June 2022, the Group had a cash position of $44.1 million (2021: $9.7 million). Operating activities resulted in
a net cash outflow for the year of $12.4 million (2021: $7.3 million). Further information on operating and financial
performance is set out in the Operations Review.
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
No matters or circumstances have arisen since 30 June 2022 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 mining 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.
ENVIRONMENTAL REGULATION
The Group’s operations are subject to environmental regulation in respect of mineral tenements and mining claims
relating to exploration activities on those areas. 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.
2022 2021
$ $
Audit and review of financial statements 51,000 47,000
19
REX MINERALS LTD
LETTER FROM THE REMUNERATION COMMITTEE CHAIRMAN
For the year ended 30 June 2022
Dear Fellow Shareholder,
On behalf of the Board, I am pleased to present the Remuneration Report for FY22, which outlines the remuneration for
the Key Management Personnel (KMP), which includes the CEO, Executive Director, senior Executives and Non-Executive
Directors of the Company.
Commencing during FY22 and continuing in FY23, we are undertaking a process of maturing our remuneration policies
and processes, whilst maintaining a “fit for purpose” overlay in line with the current stage of Rex’s evolution. In the past,
the Company has relied on a relatively simple remuneration structure, using an Option Incentive Plan in order to both
conserve cash and minimise dilution.
The Remuneration Committee’s objective is to ensure that our remuneration framework delivers outcomes which have a
clear link to Company and individual performance, and which are consistent with our long-term strategy and values.
We were pleased to again receive strong support and endorsement of our Remuneration Report at the 2021 Annual
General Meeting, with 98% of votes in favour.
Financial Year 2022 in review
For a company operating in two countries – involved in exploration, permitting and pre-development, with limited cash –
defining, and setting financial and performance targets is a complex challenge. Rex, is navigating this space amidst the
volatility of international commodity and capital markets, coupled with COVID-19 restrictions and now the global
inflationary pressures and supply disruptions.
In this environment, our Hillside Project in South Australia, (which has the third largest copper Reserve in Australia)
joins the modest list of future-facing metals identified as fundamentally crucial to development contributing to achieving
progress in reaching global decarbonisation objectives and targets.
Health, Safety and Environment (HSE) outcomes for the year were excellent. We can proudly report no lost time, medically
treated nor significant injuries or incidents, whilst operating remotely, running exploration drilling operations and numerous
technical, geophysical and geotechnical programs. Environmentally, we have moved the bar on energy efficiency in Hillside’s
plan and we continue to introduce carbon lowering and renewable synergies not previously envisioned. We will now begin to
introduce measures to include HSE objectives more meaningfully into our remuneration objectives.
Corporately, we raised equity funds to progress our pre-development works at Hillside and to continue our exploration for
gold at Hog Ranch in Nevada. We have begun to employ key Executives at both Projects in line with their status and, in
particular, to deliver the next phase of the Hillside Project.
KMP changes for 2022
As Hillside moves closer to its Final Investment Decision (FID), we remain focused on delivery of the construction phase.
As a result, there have been a number of changes and additions to the structure of the executive team during 2022.
In light of the successful completion of the $50 million capital raising in September 2021, the remuneration structures for
the CEO, the CFO and key new KMP have been reviewed by the Remuneration Committee. The changes are as follows:
The CEO, Mr Richard Laufmann, had been employed on a 60% Full Time Equivalent (FTE) employment arrangement
since his commencement as CEO in 2015. During this seven year period, he did not receive any increase in fixed pay or any
STI awards. Effective 1 September 2021, Mr Laufmann is now employed on a full-time basis, at the same 2015 FTE rate.
To recognise his significant time commitment above and beyond the 60% FTE arrangement over this period, and delivery
of the milestone PEPR approval in July 2020, a one-off cash payment of $125k was paid to Mr Laufmann in June 2022.
The CFO, Ms Amber Rivamonte, had been previously engaged on a part-time basis through a consulting company. For
FY22 she was engaged as a full-time employee following her appointment to the Board in June 2021.
Ms Rivamonte has also not received any salary review or STI awards in the preceding seven years, nor has she received
any salary review following her appointment as an Executive Director.
Mr Jason Schell, EGM, South Australia was appointed on 9 May 2022 to lead the South Australian business.
Mr Peter Bird, EGM Investor Relations and Business Development commenced on 1 March 2022.
Mr Andrew Seaton, Non-Executive Director and Chair of the Remuneration Committee, commenced on 1 December 2021.
Mr Ron Douglas retired as Non-Executive Director effective 21 April 2022 to assume a leadership role in delivering the
engineering and construction solution for the Hillside plant.
ANNUAL REPORT 2 0 2 2
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20
REX MINERALS LTD
LETTER FROM THE REMUNERATION COMMITTEE CHAIRMAN
(Continued) for the year ended 30 June 2022
Fixed Remuneration
There were no changes to the structure of existing fixed remuneration contracts during the year. New KMP were employed
on market competitive contracts.
Short Term Incentive
No STI payments have been made to any KMP in the last seven years. In line with our objective to mature the Company’s
remuneration framework, and with reference to external remuneration benchmarking analysis, we intend to adopt an
evolved STI framework during FY23.
Long Term Incentive
There were no LTI awards under the Option Incentive Plan to existing executive KMP (including the CEO, CFO and
Director Hog Ranch) during FY22.
The EGM, South Australia and EGM IR and Business Development each received an LTI award under the Option
Incentive Plan upon their commencement.
2022/2023 Evolution of Remuneration framework
As we prepare to manage the transition from exploration to construction and subsequently production, we have given
consideration to the overall remuneration framework required to both retain the current Executive team as well as
attracting new Executives.
The goal is to set the Company up for success whilst conserving cash ahead of the start of production. This balance is
vitally important and nuanced.
The Remuneration Committee has commenced work on establishing a reward framework that ensures Executive rewards
reflect achievement, with the aim of delivering long-term shareholder value, through the following remuneration principles:
(cid:129)
Creating a strong link between performance and reward over the short and long-term
(cid:129)
Maintaining fair, consistent and equitable remuneration practices which align with the Company’s values
and vision whilst remaining competitive with the market to attract the best potential candidates
(cid:129)
Ensuring that Executive remuneration is linked to the creation of shareholder value
(cid:129)
Recognising the calibre and skills of Executives and ensuring that they are rewarded for superior
performance, and
(cid:129)
Retaining talented Executives, noting both the cyclical and competitive nature of the market.
The Company will continue to seek guidance in the governance of remuneration strategy from a variety of sources, to
remain transparent and consistent with industry standards, whilst ensuring what we implement is fit for purpose.
Mercer Consulting (Australia) Pty Ltd has been engaged as the Company’s independent Remuneration Adviser and has
compiled a benchmarking survey for both executive and non-executive positions. Based on this frame of reference, the
Company’s remuneration framework will be reviewed and adjusted during FY23 to ensure that we have an appropriate
remuneration structure for the FID of the Hillside Project and beyond.
I trust that the above summary outlines our thinking and key decision drivers as we navigate the coming year.
Mr Andrew Seaton
Chair of the Remuneration Committee
21
REX MINERALS LTD
DIRECTORS’ REPORT (Continued) for the year ended 30 June 2022
REMUNERATION REPORT – AUDITED
The Directors present the Remuneration Report for the year ended 30 June 2022, 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.
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, a cash bonus was paid to
the CEO only. No other 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
2021. 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)
2022
$
12.8
2021
$
8.8
2020
$
5.2
2019
$
5.1
2018
$
5.2
Closing share price at financial year’s end ($)
0.135
0.350
0.070
0.053
0.105
ANNUAL REPORT 2 0 2 2
l
22
REX MINERALS LTD
DIRECTORS’ REPORT (Continued) for the year ended 30 June 2022
REMUNERATION REPORT – AUDITED (CONTINUED)
Service agreements
In line with Group policy, the Group has entered into contracts with each of its Executives, details of which are
outlined below:
Component
CEO description
Senior Executive description
Fixed Remuneration
$444,167
Range between $314,000 and
$477,500 FTE
STI
LTI
At the discretion of the Board,
no formal STI plan in place
Range from no formal plan to up
to 60% of base salary
At discretion of the Board under terms and conditions of the Option Incentive
Plan (approved by Shareholders at the 2021 AGM)
Contract duration
Ongoing contract
Notice by individual/company
2 months
Range between 2 months
and 3 months
Termination of employment
(without cause) or by the individual
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. Entitlement to pro-rata STI
for the year (under certain conditions). Unvested LTI will vest immediately if
the individual is deemed a good leaver or will lapse if deemed a bad leaver
Termination of employment
(with cause)
No additional entitlement on termination in the event of removal for
misconduct or gross negligence. No eligibility for STI payments, unvested
LTI will lapse
Different contractual terms apply to the following individuals:
Mr Bird’s contract included a three month probationary period at 60% FTE, then moved to 100% following completion
of the probationary period. Mr Bird is also eligible for an STI bonus and in the event of a redundancy a payment of two
months’ salary.
Mr Schell’s contract provides for eligibility for an STI of up to 60% of his base salary in addition to a one-time completion
bonus, on the achievement of certain milestones related to the Hillside Project. Mr Schell is also entitled to a payment of
six months’ salary in the event of redundancy.
Ms Leeden is engaged via a part-time consulting arrangement and is paid a monthly retainer at 40% FTE paid in USD
and presented in AUD in this report. Ms Leeden has been awarded an LTI under the Company’s Option Incentive Plan and
is not entitled to an STI or redundancy payment in her contract.
Non-Executive Directors
Total compensation for all Non-Executive Directors, as approved 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.
23
REX MINERALS LTD
DIRECTORS’ REPORT (Continued) for the year ended 30 June 2022
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 2022
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REX MINERALS LTD
DIRECTORS’ REPORT (Continued) for the year ended 30 June 2022
REMUNERATION REPORT – AUDITED (CONTINUED)
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REX MINERALS LTD
DIRECTORS’ REPORT (Continued) for the year ended 30 June 2022
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 8.3 million options and issued 3.7 million ordinary shares as a result of the exercise
of options (1.0 million to KMP and 2.7 million to other participants of the option plan), 0.5 million options lapsed.
Options over ordinary shares of the Company at 30 June 2022:
Date options granted
6 March 2020
1 December 2020
28 May 2021
26 November 2021
10 March 2022
26 April 2022
Expiry date
Fair value
grant date (cents)
Issue price
(cents)
29 February 2024
30 November 2024
28 May 2025
24 November 2025
2 March 2026
17 April 2026
2.38
6.6
19.3
11.6
12.8
12.4
7.0
17.5
47.0
33.0
25.3
30.0
Number of
options
7,766,667
5,000,000
200,000
280,000
7,000,000
1,000,000
21,246,667
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 Greg Robinson
Mr Andrew Seaton
Mr Richard Laufmann
Ms Amber Rivamonte
Mr Peter Bird
Mr Jason Schell
Ms Cherie Leeden
Former
Mr Ron Douglas
Held at
30 June
2021
Number of
options
granted
Number of
options vested
and
exercisable
% of
options
vested
Number of
options
exercised
Held at
30 June 2022
or date ceased
being KMP
333,334A
200,000D
–
–
–
280,000E
333,334
66,000
–
5,000,000C
1,500,000B
–
–
1,650,000
1,000,000
–
–
3,500,000F
3,500,000F
2,000,000B
666,667A
–
–
–
–
1,000,000
100
333,3341
–
33
–
33
66
–
–
66
–
–
–
–
–
–
–
200,000
280,000
5,000,000
1,500,000
3,500,000
3,500,000
2,000,000
666,667
100
666,6671
1The options exercised were paid directly by the KMP at an exercise price of 8.4 cents.
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
C
D
E
Grant date
14 Feb 2019
6 Mar 2020
1 Dec 2020 28 May 2021 26 Nov 2021 10 Mar 2022
Fair value per option at grant date
2.88 cents
2.38 cents
6.6 cents
19.3 cents
11.6 cents
12.8 cents
Exercise price per option
8.4 cents
7.0 cents
17.5 cents
47.0 cents
33.0 cents
25.3 cents
Expiry date
31 Jan 2023 29 Feb 2024 30 Nov 2024 28 May 2025 24 Nov 2025
2 Mar 2026
All options vest in three equal tranches.
ANNUAL REPORT 2 0 2 2
l
26
–
F
REX MINERALS LTD
DIRECTORS’ REPORT (Continued) for the year ended 30 June 2022
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 Greg Robinson
Mr Andrew Seaton
Mr Richard Laufmann
Ms Amber Rivamonte
Mr Peter Bird
Mr Jason Schell
Ms Cherie Leeden
Former
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
–
–
32,581
–
–
448,350
448,350
–
–
5,723
22,413
11,781
138,143
8,033
83,904
83,904
16,065
–
14,056
20,800
75,514
2,713
364,446
364,446
5,426
52,000
–
–
–
–
–
–
–
5,723
–
110,667
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 Greg Robinson
Mr Andrew Seaton
Mr Richard Laufmann
Ms Amber Rivamonte
Mr Peter Bird
Mr Jason Schell
Ms Cherie Leeden
Former
Mr Ron Douglas
Held at
30 June 2021
or date became
KMP
Received on
exercise of option
Acquired or sold
during the year
Held at 30 June
2022 or date
ceased being
KMP
848,485
333,334
–
–
8,419,893
6,326,909
–
542,034
1,000,000
–
–
–
–
–
–
–
518,181
1,958,334
500,000
–
–
–
–
–
1,700,000
1,958,334
500,000
8,419,893
6,326,909
–
542,034
1,000,000
333,333
666,667
333,334
1,333,334
Since 30 June 2022, Mr Greg Robinson has acquired 600,000 shares, bringing his total to 2,558,334 at the date of
this report.
27
REX MINERALS LTD
DIRECTORS’ REPORT (Continued) for the year ended 30 June 2022
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 2021
Acquired during
the year
Converted
during the year
Held at
30 June 2022
Mr Richard Laufmann
Ms Amber Rivamonte
969,227
3,876,907
–
–
–
–
969,227
3,876,907
The Company issued 20 million HRCR (including to related parties) as part consideration for the Hog Ranch acquisition
in August 2019. The HRCR convert to Rex shares on the outcome of certain milestones. The following milestone remains
outstanding:
a.
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.
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, there were no transactions between KMP related companies and the Group.
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 52 and forms part of the Directors’ Report for the year
ended 30 June 2022.
Dated at Melbourne this 9th day of September 2022.
Signed in accordance with a resolution of the Directors:
Mr Richard Laufmann
Chief Executive Officer
ANNUAL REPORT 2 0 2 2
l
28
REX MINERALS LTD
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As at 30 June
2022 2021
Note $000 $000
Current assets
Cash and cash equivalents 7 44,139 9,682
Trade and other receivables 411 145
Prepayments 1,019 53
Total current assets 45,569 9,880
Non-current assets
Exploration and evaluation expenditure 9 3,243 3,243
Property, plant and equipment 10 14,263 14,279
Water infrastructure 4,076 4,076
Total non-current assets 21,582 21,598
Total assets 67,151 31,478
Current liabilities
Trade and other payables 11 1,144 617
Employee benefits 12 793 600
Total current liabilities 1,937 1,217
Non-current liabilities
Employee benefits 12 106 115
Total non-current liabilities 106 115
Total liabilities 2,043 1,332
Net assets 65,108 30,146
Equity
Issued capital 13(a) 264,846 217,502
Reserves 13(d) 1,140 846
Accumulated losses (200,878) (188,202)
Total equity 65,108 30,146
The notes on pages 33 to 50 are an integral part of these financial statements.
29
REX MINERALS LTD
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND
OTHER COMPREHENSIVE INCOME
For the year ended 30 June
2022 2021
Note $000 $000
Finance income 92 18
Government grants 92 55
Corporate and compliance (1,318) (891)
Depreciation expense 10 (41) (58)
Employee benefits expense 14 (3,295) (2,204)
Marketing expenses (220) (273)
Exploration and evaluation (8,344) (4,589)
Borrowing costs – (731)
Foreign currency revaluation 257 (117)
Gain on disposal of fixed assets – 11
Loss before tax (12,777) (8,779)
Income tax benefit 15 – –
Total loss for the period after tax (12,777) (8,779)
Other comprehensive income – –
Total comprehensive loss attributable to members of Rex Minerals Ltd (12,777) (8,779)
Loss per share attributable to members of Rex Minerals Ltd
Basic loss per share (cents) 16 (2.30) (2.36)
Diluted loss per share (cents) 16 (2.30) (2.36)
The notes on pages 33 to 50 are an integral part of these financial statements.
ANNUAL REPORT 2 0 2 2
l
30
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 2021 217,502 846 (188,202) 30,146
50,271
Issue of ordinary shares 13(a) 50,271 – –
(2,927)
Cost of share issue (2,927) – –
395
Share based payments 13(d) – 395 –
Transfer from share based payments reserve – (101) 101
–
Total comprehensive loss for the period – – (12,777) (12,777)
Balance at 30 June 2022 264,846 1,140 (200,878) 65,108
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
The notes on pages 33 to 50 are an integral part of these financial statements.
31
REX MINERALS LTD
CONSOLIDATED STATEMENT OF CASH FLOWS
For the year ended 30 June
2022 2021
Note $000 $000
Cash flows from operating activities
Cash paid to suppliers and employees (4,342) (3,115)
Exploration and evaluation payments (8,741) (4,246)
Receipts from ATO (GST) 578 –
Interest received 76 19
Government grants – 50
Net cash used in operating activities 17(a) (12,429) (7,292)
Cash flows from investing activities
Acquisition of property, plant and equipment 10 (715) (3)
Proceeds from the sale of property, plant and equipment – 15
Net cash used in investing activities (715) 12
Cash flows from financing activities
Proceeds from issue of ordinary shares 13 50,271 20,539
Payment of costs of share issue 13 (2,927) (1,174)
Payment of borrowing costs – (884)
Repayment of borrowings 17(b) – (4,400)
Net cash from financing activities 47,344 14,081
Net decrease in cash and cash equivalents 34,200 6,801
Cash and cash equivalents at beginning of the period 9,682 2,990
Effect of change in exchange rates 257 (109)
Cash and cash equivalents at period end 7 44,139 9,682
The notes on pages 33 to 50 are an integral part of these financial statements.
ANNUAL REPORT 2 0 2 2
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32
REX MINERALS LTD
NOTES TO THE FINANCIAL STATEMENTS
1. REPORTING ENTITY
Rex Minerals Ltd (Rex or 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 9 September 2022.
(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 2022, the Group holds cash of $44.139 million and net current assets of $43.632 million. 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 3(e) and 10
Recoverable value of non-current assets – assessment of impairment
indicators, and
(cid:129) note 3(f), 4 and 18
Share based payments – key assumptions used in the valuation model.
33
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 2
l
34
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.
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.
35
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 2
l
36
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.
37
REX MINERALS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
3.
SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(m) Prepayments
The Company may make payments in advance to secure goods and/or services. These are recorded as prepayments
in the balance sheet.
Water Infrastructure represents a prepayment to SA Water for infrastructure upgrades which will be amortised to
the profit and loss over the life of future water contracts and recognised as water expense.
(n) New standards and interpretations not yet adopted
A number of new standards are effective for annual periods beginning after 1 July 2022 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 2
l
38
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 2022, which are the Group’s areas of focus.
The areas 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 its highly prospective exploration
portfolio; whilst in Nevada, USA the Group has the Hog Ranch Gold 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
2022 $000 $000 $000 $000
Finance income – – 92 92
Government grants – – 92 92
Losses before tax (including
depreciation and interest expense) 6,655 2,781 3,341 12,777
Depreciation 35 – 6 41
Interest expense – – – –
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
7. CASH AND CASH EQUIVALENTS
2022 2021
$000 $000
Bank balances and short-term deposits 44,139 9,682
Cash and cash equivalents 44,139 9,682
The Group’s total cash and funds on deposit of $44.139 million (2021: $9.682 million) is exposed to interest rate
risk and a sensitivity analysis for financial assets and liabilities is disclosed in note 19.
39
REX MINERALS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
8. DEFERRED TAX ASSETS (DTA) AND DEFERRED TAX LIABILITIES (DTL)
2022 2021
$000 $000
Exploration and evaluation assets (494) (494)
Property, plant and equipment (45) (49)
Provisions 191 214
Equity costs 926 323
Net DTA/(DTL) 578 (6)
Tax losses recognised to the extent of the DTL – 6
Derecognition of DTA as not sufficiently certain (578) –
– –
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 $60.392 million (2021: $57.251 million).
9. EXPLORATION
2022 2021
$000 $000
Balance at 1 July 3,243 3,243
Balance at 30 June 3,243 3,243
10. PROPERTY, PLANT AND EQUIPMENT
Land and Plant and
buildings equipment Total
2022 $000 $000 $000
Cost
Balance at 1 July 2021 14,309 1,872 16,181
Additions – 25 25
Disposals – (3) (3)
Balance at 30 June 2022 14,309 1,894 16,203
Depreciation
Balance at 1 July 2021 90 1,812 1,902
Depreciation 10 31 41
Disposals – (3) (3)
Balance at 30 June 2022 100 1,840 1,940
Carrying amounts
At 1 July 2021 14,219 60 14,279
At 30 June 2022 14,209 54 14,263
Prepayments at 30 June 2022 includes $0.690 million which represents payments made to secure fixed assets
which are expected to be completed before 30 June 2023 (2021: nil). These payments are reflected as PP&E in
the Consolidated statement of cash flows.
ANNUAL REPORT 2 0 2 2
l
40
REX MINERALS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
10. PROPERTY, PLANT AND EQUIPMENT (CONTINUED)
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
11. TRADE AND OTHER PAYABLES
2022 2021
$000 $000
Current
Trade payables 14 57
Accrued expenses 1,130 560
Total current trade and other payables 1,144 617
Total trade and other payables 1,144 617
12. EMPLOYEE BENEFITS PROVISIONS
2022 2021
$000 $000
Current
Annual leave 553 442
Long service leave 240 158
Total current employee benefits provisions 793 600
Non-current
Long service leave 106 115
Total non-current employee benefits provisions 106 115
Total employee benefits provisions 899 715
41
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 2021 422,320,920 217,502
Issue of Shares 11/08/2021 17,827,303 0.300 5,348
Cost of share issue 11/08/2021 (346)
Issue of Shares 17/09/2021 148,839,364 0.300 44,652
Cost of share issue 17/09/2021 (2,581)
Exercise of options 28/09/2021 333,333 0.084 28
Exercise of options 15/03/2022 666,668 0.084 56
Exercise of options 18/03/2022 2,000,000 0.070 140
Exercise of options 28/03/2022 666,666 0.070 47
Closing balance at 30 June 2022 592,654,254 264,846
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
(b) Movements in HRCR:
Date of Number of Exercise Expiry
issue rights price $ date
Opening balance as at 1 July 2021 15,000,000
Closing balance as at 30 June 2022 15,000,000
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
As announced to the ASX on 25 November 2019, the Company issued 20 million HRCR as part consideration
for the Hog Ranch acquisition in August 2019, 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 ended 30 June 2021, 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 2
l
42
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 2021 17,133,334
Exercise of options 14/02/2019 (333,333) 0.084 31/01/2023
Lapse of options 06/03/2020 (500,000) 0.070 29/02/2024
Issue of options 26/11/2021 280,000 0.330 24/11/2025
Issue of options 10/03/2022 7,000,000 0.253 02/03/2026
Exercise of options 14/02/2019 (666,668) 0.084 31/01/2023
Exercise of options 06/03/2020 (2,000,000) 0.070 29/02/2024
Exercise of options 06/03/2020 (666,666) 0.070 29/02/2024
Issue of options 26/04/2022 1,000,000 0.300 17/04/2026
Closing balance as at 30 June 2022 21,246,667
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
(d) Movements in share based payment reserve:
$000
Opening balance at 1 July 2021 846
Share based payments – options 395
Transfer from share based payments (101)
Closing balance at 30 June 2022 1,140
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
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
2022 2021
$000 $000
Wages and salaries 2,760 1,956
Share based payments 352 204
Increase/(decrease) in liability for annual leave 111 25
Increase/(decrease) in liability for long service leave 72 19
Total employee benefits expense 3,295 2,204
43
REX MINERALS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
15. INCOME TAX BENEFIT
NUMERICAL RECONCILIATION BETWEEN TAX BENEFIT AND PRE-TAX ACCOUNTING LOSS
2022 2021
$000 $000
Loss before tax for the period (12,777) (8,779)
Income tax benefit using the corporation tax rate of 30% (2021: 30%) (3,833) (2,634)
Non-deductible expenses 159 78
Effect of jurisdictional tax variances 250 377
DTA not recognised – other jurisdiction 583 879
Net effect of tax losses not recognised 2,841 1,300
Total income tax expense/(benefit) on pre-tax net loss – –
16. LOSS PER SHARE
2022 2021
cents cents
Loss per share
Basic loss per share (2.30) (2.36)
Diluted loss per share (2.30) (2.36)
(a) Basic loss per share
The calculation of basic loss per share at 30 June 2022 was based on the loss attributable to ordinary
equity holders of $12.777 million (2021: $8.779 million) and a weighted average number of ordinary
shares outstanding during the financial year ended 30 June 2022 of 556,276,809 (2021: 372,330,731).
(b) Diluted loss per share
The calculation of diluted loss per share at 30 June 2022 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 21,246,667 at 30 June 2022.
17. RECONCILIATION OF CASH FLOWS
(a) Reconciliation of net profit to cash used in operating activities
2022 2021
Note $000 $000
Loss before tax for the period (12,777) (8,779)
Adjustments for non-cash items:
Depreciation 10 41 58
Share based payments 13(d) 395 276
Adjustments for other items:
Borrowing costs – 884
Foreign currency revaluation (257) 109
Gain on disposal of property plant and equipment – (11)
Operating loss before changes in working capital and provisions (12,598) (7,463)
(Increase)/decrease in receivables and prepayments (541) (110)
(Decrease)/increase in trade and other payables 527 273
(Decrease)/increase in employee benefits 183 44
(Decrease)/increase provisions – (36)
Net cash used in operating activities (12,429) (7,292)
ANNUAL REPORT 2 0 2 2
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44
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
2022 2021
$000 $000
Opening balance at 1 July – 4,400
Proceeds from borrowings – –
Repayment of borrowings – (4,400)
Closing balance at 30 June – –
18. SHARE BASED PAYMENTS
(a) Description of share based payment arrangements
During the financial year ending 30 June 2022, the following options were issued:
(cid:129)
(cid:129)
(cid:129)
0.28 million options were granted on 26 November 2021, expiring 24 November 2025. Options are
exercisable at a price of 33.0 cents each and options will vest in three equal tranches as follows: one
third on 1 December 2022; one third on 1 December 2023 and one third on 1 December 2024.
7 million were granted on 10 March 2022, expiring 2 March 2026. Options are exercisable at a price
of 25.3 cents each and options will vest in three equal tranches as follows: one third on 10 March
2023; one third on 10 March 2024 and one third on 10 March 2025.
1 million were granted on 26 April 2022, expiring 17 April 2026. Options are exercisable at a price of
30.0 cents each and options will vest in three equal tranches as follows: one third on 17 April 2023;
one third on 17 April 2024 and one third on 17 April 2025.
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.
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 during the year 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 26 November 2021 10 March 2022 26 April 2022
Fair value at grant date (cents) 11.6 12.8 12.4
Exercise price (cents) 33.0 25.3 30.0
Expected volatility (percentage) 76 75 72
Option life (years) 3.5 3.5 3.5
Free interest rate (percentage) 1.10 1.17 2.73
(c)
Option expense
2022 2021
$000 $000
Option expense 395 276
Total recognised as share based payments 395 276
45
REX MINERALS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
18. SHARE BASED PAYMENTS (CONTINUED)
(d)
Outstanding options
Date options granted
Expiry date
Issue price (cents)
Number of options
6 March 2020
29 February 2024
1 December 2020
30 November 2024
28 May 2021
28 May 2025
26 November 2021
24 November 2025
10 March 2022
26 April 2022
2 March 2026
17 April 2026
7.0
17.5
47.0
33.0
25.3
30.0
7,766,667
5,000,000
200,000
280,000
7,000,000
1,000,000
21,246,667
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
2022
Trade and other payables 1,144 (1,144) (1,144) –
1,144 (1,144) (1,144) –
2021
Trade and other payables 617 (617) (617) –
617 (617) (617) –
(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:
2022 2021
$000 $000
Cash and cash equivalents 44,139 9,682
Total cash and cash equivalents 44,139 9,682
ANNUAL REPORT 2 0 2 2
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46
REX MINERALS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
19. FINANCIAL INSTRUMENTS (CONTINUED)
(d)
Interest rate risk (Continued)
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 2022, 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)
2022 2021 2022 2021
$000 $000 $000 $000
Group
+1% (100 basis points) 441 97 – –
– 1% (100 basis points) (441) (97) – –
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 (2021: nil).
20. COMMITMENTS
(a) 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 2022 2021
$000 $000
Not later than one year 782 712
Later than one year but not later than five years – 430
Nevada, USA 2022 2021
$000 $000
Not later than one year 73 67
Later than one year but not later than five years 73 869
Later than five years 8,145 10,841
(b)
Capital commitments
During the year ended 30 June 2022, the Group has entered into certain capital expenditure commitments
totalling $1.118 million as at 30 June 2022. The commitment is likely to be settled by 30 June 2023.
2022 2021
$000 $000
Not later than one year 1,118 –
Later than one year but not later than five years – –
47
REX MINERALS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
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 2022 (2021: $0.020 million).
22. RELATED PARTIES
(a) Parent and ultimate controlling party
Country of
Ownership Interest
Incorporation 2022 2021
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%
(b)
Transactions with Key Management Personnel (KMP)
(i)
Loans to Directors
There were no loans advanced to Directors for the year ending 30 June 2022 (2021: nil).
(ii) Loans from Directors
There were no loans from Directors for the year ending 30 June 2022.
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 (subsequently extended) using the Group’s freehold land as security.
The balances in relation to the related parties’ portion is as follows:
2022 2021
$ $
Balance at 1 July – 2,328,288
Interest charged – 371,712
Amount paid – (2,700,000)
Balance at 30 June – –
(iii) KMP compensation
KMP compensation comprised the following:
2022 2021
$ $
Short-term benefits 1,418,876 966,949
Post-employment benefits 90,361 54,093
Share based payments 375,689 191,997
Other long-term benefits 36,093 6,227
1,921,019 1,219,266
ANNUAL REPORT 2 0 2 2
l
48
REX MINERALS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
22. RELATED PARTIES (CONTINUED)
(iii) KMP compensation (Continued)
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 22 to 28.
There have been no changes to KMP between 1 July 2022 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, no KMP related companies transacted with the Group.
Information regarding individual Directors’ and Executive Officers’ compensation are provided in the
Remuneration Report section of the Directors’ Report on pages 22 to 28.
During the year ended 30 June 2022, there were no transactions or outstanding balances related to
KMP companies (2021: $54,337 related to IT consulting services were provided by a company jointly
controlled by the Chief Financial Officer; there were no outstanding balances as at 30 June 2021).
23. PARENT ENTITY DISCLOSURES
As at, and throughout, the period ending 30 June 2022, the parent company of the Group was Rex Minerals Ltd.
2022 2021
$000 $000
Result of the parent entity
Loss for the period (10,501) (4,360)
Other comprehensive income – –
Total comprehensive loss for the period (10,501) (4,360)
Financial position of the parent entity at year end
Current assets 44,473 9,772
Total assets 69,166 31,658
Current liabilities 1,322 1,041
Total liabilities 1,427 1,157
Total equity of the parent entity comprising of
Share capital 264,846 217,502
Share based payments reserve 1,140 846
Accumulated losses (198,247) (187,847)
Total equity 67,379 30,501
Parent entity contingencies
The Parent entity’s contingencies are the same as the Group’s contingencies as detailed in Note 21.
49
REX MINERALS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
24. SUBSEQUENT EVENTS
No item, transaction or event of a material nature or circumstances have arisen in the interval between the end
of the financial year and the date of this report, 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
2022 2021
KPMG Australia $ $
Audit services 51,000 47,000
No non-audit services were provided in the current year.
ANNUAL REPORT 2 0 2 2
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50
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 22 to 28, 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 2022 and of its performance
for the financial year ended on that date; and
(ii) complying with Australian Accounting Standards 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 2022.
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 9th day of September 2022.
51
Lead Auditor’s Independence Dec
Section 307C of the Corporations
claration under
s Act 2001
To the Directors of Rex Minerals Limited
I declare that, to the best of my knowledge and belief, in relation to th
the financial year ended 30 June 2022 there have been:
he audit of Rex Minerals Limited for
i.
ii.
no contraventions of the auditor independence requirem
Act 2001 in relation to the audit; and
ments as set out in the C rp raations
por
or
no contraventions of any applicable code of professiona
l conduct in relation to the audit.
Paul Cenko
Partner
Adelaide
9 September 2022
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ANNUAL REPORT 2 0 2 2
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52
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Independent Auditor’s Report
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ncome, Consolidated statement of
and Consolidated statement of cash
then ended;
(cid:1) Notes including a
summary of significant accounting
policies; and
(cid:1) Directors’ Declarat
tion.
The Group consists
controlled at the year
financial year.
of the Company and the entities it
end or from time to time during the
We conducted our audit in accordance with
Austraaliaan Auditing S
evidence we have obtained is sufficient and appropriate to provide a
tStaandardds. We believe that the audit
a basis for our opinion.
r
r
i
Our responsibilities under those standards are further described in
audit of the Financiaal Report section of our report.
i
n the Auditor’s responsibilities for the
or
f
We are independent of the Group in accordance with the Cor
requirements of the Accounting Pr feessional and Ethical Staandardds
Pr feessional Acc
taants (iincluding Independence Staa daardds) (the C
the Financial Report in Australia. We have fulfilled our other ethica
these requirements.
t
rndt
ount
of
of
r
(
l
r
r
rrpporaations Act 2001 and the ethical
t
Boardd’s APES
f Ethics foor
0 C
S
Code) that are relevant to our audit of
al responsibilities in accordance with
ode of
110
f
K
sertatMtiduAey
Key Audit Matters are those matters that, in our professional judgem
audit of the Financial Report of the current period.
ment, were of most significance in our
This matter was addressed in the context of our audit of the Financ
our opinion thereon, and we do not provide a separate opinion on th
cial Report as a whole, and in forming
is matter.
tran pailartsuAn
a,MGPK
w
IMGPh Kti
l
ogo a
r
demare t
a
e amhec s
ppr
timi Llaonitnaernt
eds uskra
under
edov
ap hisner
bermemnd a
Eetavi
tye b
praed,
ens
under
cil
isesofrP
dsrandat Slona
ndependent
itals
Legi
on.
ofmrif
t
glMGPKhe
edtimi lynapomch singl
he i
emm
ber
loba
by
oitasniagor
on of
A
ntara
Aee.
i rll
t
PKhe
P
l gMG
ndependent
ed.
itasniga
veres rsght
or
loba
em m
The K
on.
gu
ofsmrif
tailiffasmri f
ber
ae manMGP
y bdeitm liylitibiaL
nd
ed
i
53
roatcidnitenmraipmifotenmsesssA
roatcidnitenmraipmifotenmsesssA
ald olG-erppoCe dislliHe htrofsr
and
luibnd
di
.ngs
Land and buildings $14.209m – Note 10
0
The key audit matter
How the matter was addressed in our audit
The assessment of whether
indicators exist over the carrying value of
Hillside Copper-Gold Project land and bui
a key audit matter due to:
im
mpairment
ue of the
uildings is
(cid:1)
(cid:1)
The significance of the balances
financial statements, being 21%
assets; and
es to the
% of total
The significance of this determina
ation and
its effect on the scope and dept
th of our
work.
im
The presence of
mpairment
indicators would necessitate a det
detailed
analysis by the Group of the rec
coverable
value of the Hillside Copper-Gol
d Project
land and buildings.
In assessing the presence of
im
mpairment
indicators, we focused on the valuation of
on of land
and buildings obtained from the Group’
s external
valuation expert and the existence
e of any
indicators of impairment since that dat
e.
Together with valuation specialist we i
senior audit team members in assessin
audit matter.
e involved
g this key
(cid:1)
(cid:1)
(cid:1)
(cid:1)
(cid:1)
Our procedures included:
Considering the appropriateness of the Group’s
assessment of impairment indicators against the
requirements of the accounting standards.
Evaluating the Group’s assessment of indicators of
asset impairment at 30 June 2022 with reference to
our knowledge of the Group, our industry experience
and current market conditions.
Comparing the carrying value of land and buildings to
the Group’s external valuation expert
fair value
estimate.
Assessing the scope, competence and objectivity of
the Group's external valuation expert engaged to
value the land and buildings.
Involving a valuation specialist
in assessing the
methodology used in the valuation of land and
buildings by the Group's external valuation expert and
checking the data used to recent sale transactions of
comparable land and observable trends.
https://www.auasb.gov.au/admin/file/content102/c3/ar1_2020.pdf
O
onitamornfIrhet
Other Information is financial and non-financial information in Rex Minerals Limited’s annual repo
is provided in addition to the Financial Report and the Auditor’s Report. The Directors are respons
Other Information.
orting which
sible for the
Our opinion on the Financial Report does not cover the Other Information and, accordingly, we do
an audit opinion or any form of assurance conclusion thereon, with the exception of the Remunera
and our related assurance opinion.
not express
ation Report
In connection with our audit of the Financial Report, our responsibility is to read the Other Info
doing so, we consider whether the Other Information is materially inconsistent with the Financi
our knowledge obtained in the audit, or otherwise appears to be materially misstated.
ormation. In
al Report or
We are required to report if we conclude that there is a material misstatement of this Other Infor
based on the work we have performed on the Other Information that we obtained prior to the
Auditor’s Report we have nothing to report.
mation, and
date of this
ANNUAL REPORT 2 0 2 2
l
54
trofsrotceriDe htfoesitilibisnopesR
icannFie ht
troepRal
The Directors are responsible for:
(cid:1)
(cid:1)
(cid:1)
preparing the Financial Report that
Staandards and the C rp raations Ac
por
t gives a true and fair view in accordance with Austraalian Accounting
ct 2001;
or
t
r
r
implementing necessary internal c
and fair view and is free from mater
ontrol to enable the preparation of a Financial Report that gives a true
erial misstatement, whether due to fraud or error; and
assessing the Group and Company
going concern basis of accounting
to going concern and using the goi
the Group and Company or to ceas
y’s ability to continue as a going concern and whether the use of the
is appropriate. This includes disclosing, as applicable, matters related
oing concern basis of accounting unless they either intend to liquidate
se operations, or have no realistic alternative but to do so.
A
daue htrofesitilibisnopesrs’rotidu
d
icnanFie htfoti
troepRal
Our objective is:
(cid:1)
(cid:1)
to obtain reasonable assurance about
misstatement, whether due to fraud
bout whether the Financial Report as a whole is free from material
ud or error; and
to issue an Auditor’s Report that inc
ncludes our opinion.
Reasonable assurance is a high leve
accordance with Austraaliiaan Auditing St
ilr
el of assurance, but is not a guarantee that an audit conducted in
ttaandardds will always detect a material misstatement when it exists.
r
Misstatements can arise from fraud or
they could reasonably be expected to i
Financial Report.
error. They are considered material if, individually or in the aggregate,
influence the economic decisions of users taken on the basis of the
A further description of our responsibil
Assuraance Staandardds Boardd website a
r
This description forms part of our Audit
te
ities for the audit of the Financial Report is located at the Auditing and
at: https:///www.auasb.gov.au/admin/file/content102/c3/ar1_2020.pdf.
tor’s Report.
r
r
/
R
ope RnoitarenumeReh tn otrope
o
tr
Opinion
Directors’ responsibilities
In our opinion, the Remuneration
Report of Rex Minerals Limited for
the year ended 30 June 2022,
complies with Section 300A of the
C rp raations Act 2001.
por
or
The Directors of the Company are responsible for the prep
presentation of the Remuneration Report in accordance w
300A of the C rp raations Act 2001.
t
por
or
paration and
with Section
Our responsibilities
We have audited the Remuneration Report included in pag
of the Directors’ report for the year ended 30 June 2022.
ges 22 to 28
Our responsibility is to express an opinion on the Re
i
d
b
conducted in accordance wit
Report, based on our audit c
Auditing Staandardds.
t
d i
di
d
d
r
emuneration
h Austraalian
r
Paul Cenko
Partner
Adelaide
9 September 2022
55
REX MINERALS LTD
ADDITIONAL SHAREHOLDER INFORMATION
Additional information required by the Australian Stock Exchange (ASX) Listing Rules and not shown elsewhere in this
report is set out below and the information was applicable as at 31 July 2022.
DISTRIBUTION OF ORDINARY SHARES
The number of shareholders, by size of holding:
Total % of
Range Holders Units Issued Capital
1 – 1,000 606 229,100 0.04
1,001 – 5,000 1,604 4,775,063 0.81
5,001 – 10,000 970 7,770,977 1.31
10,001 – 100,000 2,260 83,123,076 14.03
100,001 – 999,999,999 663 496,756,038 83.81
Total
6,103 592,654,254 100.00
The number of shareholders holding less than
a marketable parcel: 1,416
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.
13.
14.
15.
JP Morgan Nominees Australia Pty Limited 48,260,373 8.14
Citicorp Nominees Pty Limited 23,043,203 3.89
UBS Nominees Pty Ltd 19,244,162 3.25
Grand South Development Limited 14,659,630 2.47
BNP Paribas Nominees Pty Ltd (IB AU Noms Retail client DRP) 10,595,204 1.79
HSBC Custody Nominees (Australia) Limited 8,457,126 1.43
Dr Steven G Rodwell 7,509,241 1.27
Mr Simon (Sui Hee) Lee 7,300,000 1.23
S & S Olsen Pty Ltd 6,628,909 1.12
Curious Capital Group Pty Ltd (Curious Capital A/C) 6,500,000 1.10
Panjeta Family Group Pty Ltd (Panjeta Family Group A/C) 5,600,000 0.94
Stone Poneys Nominees Pty Ltd (Chapman Super Fund A/C) 5,553,218 0.94
Silver Rayne Pty Ltd 5,376,909 0.91
National Nominees Limited 5,141,255 0.87
Laufmann Longterm Investments Pty Ltd
(Laufmann Super Fund A/C) 4,919,893 0.83
16. Miss Belinda Lees 4,171,000 0.70
17. Mrs Vickie Jane Jones 4,126,594 0.70
BNP Paribas Noms Pty Ltd (DRP) 3,772,050 0.64
18.
Piama Pty Ltd (Fena Superannuation Plan A/C) 3,600,000 0.61
19.
20. Mrs Natalie Laufmann 3,500,000 0.59
Total
201,458,767 33.99
SUBSTANTIAL SHAREHOLDERS
There is currently one substantial shareholder lodged with the Company:
United Super Pty Ltd 47,978,869 8.10
VOTING RIGHTS
On a show of hands, every shareholder of fully paid ordinary shares present in person or by proxy shall have one vote and
upon a poll, each share shall have one vote.
STOCK EXCHANGE LISTING
Rex Minerals Ltd is listed on the ASX. The Company’s ASX code is RXM.
ANNUAL REPORT 2 0 2 2
l
56
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STAY IN TOUCH
A 68 St Vincent Highway, Pine Point,
South Australia 5571
T 1300 822 161 (Australia)
T +61 (0)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