COPPER SA I GOLD NEVADA
ANNUAL REPORT
ABN 12 124 960 523
N 1 2 1 2 4 9 6 0 5 2 3
A B
A B
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
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
AUDITOR
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
TABLE OF CONTENTS : 30 JUNE
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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3-15
16-29
30
31
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34-50
50
51
52-55
56
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REX MINERALS LTD
LETTER FROM THE CHAIRMAN For the year ended 30 June 2023
Dear Fellow Shareholder,
The last 12 months have been intense, beginning with the release of our Optimised Feasibility and Definition Phase
Engineering Study (OFS) for our Hillside Copper-Gold Project in December. In the first half of 2023, we commenced our
final funding phase at Hillside, whilst concurrently accessing our strategic options for our Hog Ranch Gold Property.
We are in a solid financial position, with over $10m in cash at bank and zero debt, to execute on these plans as we head
into a new and defining financial year. We welcome new shareholders, and we thank all our long-standing shareholders and
stakeholders for their support and encouragement.
Our strategic holdings are 100% ownership of two significant assets – each “company makers” in their own right – in
arguably the best locations on the planet for resource discovery and development – copper in South Australia and gold in
Nevada USA.
Advancing the Hillside Copper Project, discovered by Rex, is a venture that epitomises audacity, persistence and vision.
Our resolute objective is to develop this asset, the fourth-largest copper Ore Reserve in Australia. This aspiration echoes
the spirit that fostered the rise of Australia's eminent resource giants.
We are in discussions with interested equity partners and debt providers who share our outlook both on the copper market
and in recognising the enormous value of an investment in a greenfield project of this scale.
With the release of the OFS, we reconfigured the Hillside Project for growth and expansion whilst absorbing the global
capital and operating reality of inflation. Amidst the inevitability of the ongoing global energy transition, we face the
“train wreck” which is the copper supply chain. The majors are accumulating or consolidating existing production – BHP
buys OZ, Newmont buys Newcrest, Glencore bids components of Teck – but none of these deals add to the looming copper
production shortfall.
Given the reality of the copper thematic, the South Australian Government has again shown leadership and formally
classified copper as a “Critical Mineral,” aligning it with the European Union, Canada, Japan, India, China and now the
United States.
Hillside, with truly outstanding ESG credentials, permitted in Australia and with the scale and life to deliver into this
future, is the right place and right time to invest.
Positive relations with local indigenous groups, surrounding land holders, regional communities and government agencies
remain at the forefront of how we go about our business. These will prove crucial in how we execute and deliver this nation
building project.
At Hog Ranch, with a Mineral Resource of 2.3 million ounces of gold, we have significantly added to our understanding of
the potential and scale of this discovery. Our Strategic Review, currently underway, underscores our belief in this asset as
well as our commitment in considering our options and ensuring that we harness the full potential and scale of this
outstanding opportunity.
Our team is still relatively small, but fit for purpose. In the year in review, we have continued to build the size and capacity
of our team, and it is paying significant benefits. They have done outstanding work to deliver an updated plan and have
continued to execute on the operational readiness whilst pursuing the holistic funding solution to take our Company into
development at Hillside. We look forward to reporting on the next phase of Rex’s journey.
Yours sincerely,
Mr Ian Smith
Chairman
ANNUAL REPORT
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REX MINERALS LTD
REVIEW OF OPERATIONS For the year ended 30 June 2023
CORPORATE
Rex Minerals Ltd (Rex or the Company) is an investment in copper and gold. The Company has two assets: Hillside
Copper-Gold Project (Hillside or the Project) and Hog Ranch Gold Property (Hog Ranch) each are significant assets
in their own right, with enormous “greenfield” and “brownfield” exploration upside.
In response to the evolving dynamics of a global inflationary cycle in 2022, the Company undertook a comprehensive
reassessment of the Hillside Project's fundamentals to effectively address challenges related predominantly to supply
chain and labour inflation. This initiative culminated in the release of the Optimised Feasibility and Definition Phase
Engineering Study (OFS) in December 2022.
Following significant inbound inquiry, the Company announced in February 2023 that Macquarie Capital had been
appointed as Financial Adviser to assist in managing a structured project equity partnering process for the Hillside
Project. A broad range of highly credible parties, all of whom share our positive outlook on the future of copper and an
interest in Hillside, are actively engaged in evaluating the information provided in the data room. Participants include
domestic and international mining companies, private equity groups, and metals trading houses and refiners. Their
involvement has the potential to significantly augment the value of the Project for the benefit of Rex's shareholders.
Concurrently, we are focused on structuring a senior debt solution for Hillside. Domestic and international banks, with
deep experience in supporting Australian mining and development projects, have demonstrated robust interest in providing
funding. As part of this process, leading consultancy Behre Dolbear Australia has been engaged in the role as the Lenders'
Independent Technical Expert (ITE), tasked with conducting rigorous technical due diligence and producing a
comprehensive ITE report tailored to complement financier risk assessments of Hillside.
In May 2023, Rex announced that it had initiated a strategic review of Hog Ranch, aimed at expediting exploration efforts
and substantially amplifying the scope and inherent value of the Property. The review will consider a suite of funding
alternatives and also take into account recent inbound interest in the Property. The Company appointed Treadstone
Resource Partners to manage the strategic review process for Hog Ranch.
Key milestones for the year in review are outlined below.
KEY MILESTONES
Hog Ranch Plan of Operations for exploration submitted with regulator August 2022
Completed a large-scale soil survey on the ground at Hog Ranch August 2022
Letter of Intent (LOI) signed with Thiess to provide mining services for Hillside August 2022
Hog Ranch gold trend extended December 2022
Hillside Mineral Resource and Ore Reserve updated December 2022
Hillside Optimised Feasibility and Definition Phase Engineering Study (OFS) released December 2022
Macquarie Capital appointed to initiate search for Hillside equity funding partner February 2023
Hillside Mine Community Consultative Committee announced March 2023
LOI with Hitachi executed for long lead Hillside mining fleet May 2023
Strategic Review of Hog Ranch, with Treadstone, initiated May 2023
Successful completion of $8 million Placement August 2023
In August 2023, Rex raised $8.0 million via a Placement to institutional and sophisticated investors. The Placement
comprised the issue of 40.0 million new fully paid ordinary shares (Shares), at $0.20 per Share, to raise A$8.0 million.
Participants also received one unquoted Option for every two Shares subscribed for under the Placement. The Options
have an exercise price of $0.30 and an expiry date of 9 August 2024. A total of 20 million unquoted Options were issued.
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REX MINERALS LTD
REVIEW OF OPERATIONS (Continued) for the year ended 30 June 2023
CORPORATE (CONTINUED)
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: “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 vision, 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.
Sustainability
Rex has always worked to understand the issues of importance for
local communities and regions more broadly, where we operate.
At the outset, we designed Hillside 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. Our governance framework and
policies – on sustainable development, gender, diversity and inclusion,
and people and culture – will continue to evolve and refine as we grow
and reflect the Company’s ambition, progress and contribution to a
greener, more inclusive and equitable global future.
Our sustainability commitments, aligned with relevant industry
requirements and frameworks, including the UN Sustainable
Development Goals, are now being redefined as global and national
expectations drive more defined and rigorous targets for ESG
performance.
Hillside’s approved Mineral Lease and Program for Environmental
Protection and Rehabilitation (PEPR) set out the Project’s license
conditions and the Company plans to positively manage 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.
The Company continues to progress 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, after three years of extensive flora, fauna and
archaeological baseline studies, we anticipate an outcome by the end
of 2023 on our exploration “Plan of Operations", which now sits with
the relevant regulatory bodies.
ANNUAL REPORT
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Photo 1 : Klynton Wanganeen and Jason Schell at
Narungga Nation native title consent determination.
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:
(cid:129) maintaining an economically
sustainable and responsible
business
(cid:129)
(cid:129)
(cid:129)
(cid:129)
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.
REX MINERALS LTD
REVIEW OF OPERATIONS (Continued) for the year ended 30 June 2023
CORPORATE (CONTINUED)
Gender, Diversity and Inclusion
The Board has established a stand-alone Gender,
Diversity and Inclusion Policy. The Company has
achieved its measurable objectives for gender diversity.
At 30 June 2023, female representation was 30% of
the total workforce, with women comprising 20% of the
Rex Board and 33% 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.
Photo 2 : Cherie Leeden and Debra Struhsacher representing Rex and
the industry in Washington DC, meeting politicians regarding the
importance of the US exploration and mining sector.
The underlying facts depicted in Figure 1 below are indisputable: without sufficient copper there can be no seamless
clean energy transition. This reality is profound and has not been lost on the South Australian Government, who lead the
way on clean energy transition. In August 2023, South Australia formally classified copper as a “Critical Mineral”.
This strategic classification aligns South Australia globally with the European Union, Canada, Japan, India, China,
and now, the United States.
25 MILLION TONNES OF REFINED COPPER USED PER YEAR
97 MILLION TONNES
OF GHG EMISSIONS
COPPER : AN ESSENTIAL
RAW MATERIAL
+ Cu BYPRODUCTS
SOLAR PANELS I WINDMILLS I MOTORS
ELECTRIC VEHICLES I HEAT PUMPS I SMART GRIDS
0.2% OF GLOBAL
GHG EMISSIONS
SOLUTIONS CONTRIBUTING TO THE ABATEMENT
OF 2/3 OF GLOBAL GHG EMISSIONS
Figure 1 : Cost Benefit Analysis of Copper GHG Emissions, source “Copper – Pathway to Net Zero”,
International Copper Association March 2023.
The Hillside Project has now been designed to be capable of incremental expansion, from 6Mtpa to 8Mtpa and eventually
up to 10Mtpa in Stage 2. Over Stage 1, Hillside will generate the equivalent of 1,623,642t of carbon dioxide (scope 1 and
2 emissions). This is made up of 48% liquid fuels, 50% electrical power (grid) and 1-2% explosives. This equates to
approximately 3.45t of CO2e emissions for every tonne of copper dispatched in concentrate.
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REX MINERALS LTD
REVIEW OF OPERATIONS (Continued) for the year ended 30 June 2023
CORPORATE (CONTINUED)
Climate Change (Continued)
At Hillside we have plans to progressively reduce these CO2 emissions, in the first instance through the planned power
purchase agreement from the South Australian electricity grid from its already high renewable level of 70% (Figure 2) to
100% renewable by 20301. We have the plans to drive further reductions with the addition of up to 40MW of solar on
Rex freehold land.
2021 SHARE OF WIND AND SOLAR
ELECTRICITY PRODUCED BY REGION
GLOBAL AVERAGE: 10.7%
70%
60%
50%
40%
30%
20%
10%
-
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Figure 2 : 2021 share of wind and solar electricity produced by region (Enerdata 2021, DTI analysis).
Further abatement opportunities are factored into our designs, with the large mobile fleet having been selected on the
basis that a blueprint exists for conversion using Original Equipment Manufacturer (OEM) electrification solutions, as
they become available and are proven.
1Government of South Australia (2023). Department for Energy and Mining: South Australia A global force in renewable and hydrogen energy.
HILLSIDE PROJECT – SOUTH AUSTRALIA
Rex is developing its 100% owned, flagship copper-gold Hillside
Project, located 165km 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, which collectively hosts the
largest copper producing projects in Australia.
Hillside today is the 4th largest copper Reserve in Australia, with
a Resource that currently contains 1.9Mt of copper (Cu) and
1.5Moz of gold (Au) and is one of the most significant projects
in Australia.
On 14 December 2022, Rex announced that it was moving ahead
with project financing and Operational Readiness plans following
completion of the OFS.
ANNUAL REPORT
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SOUTH AUSTRALIA
Prominent Hill
Gawler
Craton
Olympic Dam
Carrapateena
HILLSIDE
PROJECT
Adelaide
REX MINERALS LTD
REVIEW OF OPERATIONS (Continued) for the year ended 30 June 2023
HILLSIDE PROJECT – SOUTH AUSTRALIA (CONTINUED)
High level key points of the OFS are as follows:
(cid:129) Project Value for Stage 1
> Net Present Value (NPV) A$1,252 million (pre-tax), NPV of A$847 million (post-tax)
> Internal Rate of Return (IRR): 19% (nominal IRR 23%)
> C1 cash costs of US$1.52/lb copper
> 4.3-year payback period.
(cid:129) Scale and Opportunity – Stage 1 (11 years) lays the foundation for a 20 plus year operation, extracting only
around half of the current Ore Reserve. Substantial potential exists for Mineral Resources and Ore Reserves
growth, leading to mine life extension and higher processing rates beyond Stage 1.
(cid:129) First Production – Annual payable metal of circa 42kt Cu and 30koz Au to follow ramp-up.
(cid:129) Estimated pre-production capital cost of A$854 million (US$598 million) all-inclusive of full fleet,
pre-strip and contingency.
(cid:129) Team – Board and Management have significant experience in delivering similar projects in Australia and
internationally.
(cid:129) Contribution – Hillside to provide employment for over 500 people during construction and over 400 during
operations (over A$600 million in payroll), contributing over A$200 million in state royalties.
(cid:129) Regulatory Approvals – Key approvals are in place to allow commencement of development and mining operations.
Operational Readiness
Rex is progressing with its Operational Readiness plans for Hillside, advancing EPCM definition phase engineering and
development of major contracts with key contractors for processing, mining and associated infrastructure requirements.
This includes building of the owner and partner teams consistent with the Operational Readiness schedule and plan.
We are continuing with extensive on and off-site environmental monitoring for operations and with existing on-ground
pre-development activity. Key regulatory approvals are now in place to allow commencement of development and mining
operations including lodging and approval of the $34.2 million rehabilitation bond.
Mineral Resources
The Mineral Resources estimate at Hillside remains one of Australia’s largest for copper. It includes information from
608 diamond drill holes and 245 reverse circulation (RC) drill holes for a total of 239,000m of drilling. Rex announced
an updated Mineral Resources and Ore Reserves estimate on 14 December 2022.
Zone
Oxide Copper
Resource
Category
Measured
Indicated
Inferred
Measured
Secondary Sulphide
Indicated
Inferred
Measured
Primary Sulphide
Indicated
Inferred
Total
Tonnes
(Mt)
Copper
(%)
16
4.4
0.2
8.8
3.0
0.1
47
143
114
337
0.54
0.49
0.76
0.62
0.57
0.61
0.54
0.59
0.55
0.56
Gold
(g/t)
0.22
0.12
0.22
0.20
0.13
0.07
0.16
0.13
0.13
0.14
Contained
Copper (kt)
Contained
Gold (koz)
88
21
1.6
55
17
0.7
253
837
623
114
17
1.5
58
13
0.3
248
596
479
1,897
1,528
Table 1: Hillside Mineral Resources Estimate – December 2022.
Estimates have been rounded to the nearest Mt of ore (to the nearest 0.1Mt where <10Mt), two significant figures for Cu and Au grade and to the nearest kt of Cu metal
and kozs of Au metal (to the nearest 0.1kt where Cu <10kt, 0.1koz where Au <10koz). Some apparent errors may occur due to rounding.
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REX MINERALS LTD
REVIEW OF OPERATIONS (Continued) for the year ended 30 June 2023
HILLSIDE PROJECT – SOUTH AUSTRALIA (CONTINUED)
Ore Reserves
The 2022 Ore Reserves are based on the Stage 2
Pre-Feasibility Study transition plan completed in 2021
(ASX announcement 14 December 2022).
The Stage 2 transition plan is a series of phased
pushbacks that begin during the Stage 1 Mine Plan
(Figure 3). Stage 1 is approved under the PEPR.
A decision to transition to the Stage 2 Mine plan could
occur by year five. Under this transition plan, the Stage 1
open pit can transition to Stage 2 and continue for more
than 20 years of an updated open pit mine schedule at
processing rates up to 8Mtpa.
Photo 3 : Aerial view of drill core from diamond drilling at Hillside.
Category
Proved
Probable
Total
Tonnes
(Mt)
61
125
186
Copper
(%)
0.50
0.55
0.53
Gold
(g/t)
0.16
0.13
0.14
Contained
Copper (kt)
Contained
Gold (koz)
301
688
989
307
527
834
Table 2: Hillside Ore Reserves – December 2022.
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.
Figure 3 : Hillside Stage 1 (11 years) and Stage 2 open pit mine looking west.
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 Resource and Ore Reserves down dip and along strike
from the existing Mineral Resource as there has been limited drilling below 600m from surface and along strike from the
Hillside orebody.
ANNUAL REPORT
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REX MINERALS LTD
REVIEW OF OPERATIONS (Continued) for the year ended 30 June 2023
HILLSIDE PROJECT – SOUTH AUSTRALIA (CONTINUED)
3D Seismic and Structural Diamond Drilling at Hillside
After completion of the 3D seismic survey in 2022 (ASX announcement 7 June 2022), two deep diamond drill holes
(HDD 585 and HDD 586) were completed down to a vertical depth of approximately 1,200m, each underneath the
existing Mineral Resource at Hillside. These drill holes were placed to test for key host rock characteristics and structures
for mine planning and add important context for the 3D seismic interpretation at depth.
The two holes confirmed the extensive nature of alteration and structural deformation directly below the Hillside
Mineral Resource as was indicated by the results from the 3D seismic survey (see Figure 4 below). The current Mineral
Resource is now interpreted to be the up-dip expression of a potentially much larger mineralised system which may
continue to significant depths.
The results of the 3D seismic survey and follow-up deeper drilling indicate that a larger inventory of copper mineralisation
may exist at Hillside with numerous new target locations defined for follow-up testing.
BROKEN SEISMIC SIGNATURE
WHERE ALTERATION AND COPPER
MINERALISATION EXISTS
INTERPRETED SOURCE ROCK LOCATION
Figure 4 : Imagery of the Hillside area as defined from the 3D seismic survey highlighting the interpreted position of a
possible source rock at depth and the continuity of the alteration zone which hosts the current Hillside Mineral
Resource which appears to extend down deeper into the source rock position.
Health, Safety, Environment (HSE)
There were no incidents at Hillside involving people, property, or the environment during the reporting period. There were
no HSE complaints or grievances raised by the local community or other stakeholders during the reporting period.
The Company is continuing activities,
including progressive installation of
environmental monitoring equipment to
log air quality, noise, vibration and air
overpressure data. In addition, we are
working with local residents and have
begun a rainwater tank water
monitoring system.
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.
Photo 4 : Hillside Slope rehabilitation trials.
Photo 5 : Hillside PM10 environmental
dust monitoring.
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REX MINERALS LTD
REVIEW OF OPERATIONS (Continued) for the year ended 30 June 2023
HILLSIDE PROJECT – SOUTH AUSTRALIA (CONTINUED)
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 forward-facing presence
will ramp up as development proceeds. Locally, Hillside will contribute significantly to the SA Government’s plans for
establishing the State as a world-leading copper precinct, via its Copper Strategy2.
The first meeting of the Hillside Mine Community
Consultative Committee (HMCCC) was held on
6 February 2023, and members of the new
Committee were announced.
The HMCCC replaces the former Hillside Mine
Community Voice (HMCV) and has been
established to ensure an effective and ongoing
relationship between Rex and the Yorke Peninsula
community, particularly those residents
surrounding the Hillside Project.
The HMCCC will consider the common interests of
the community and provide feedback and advice to
Rex to assist with Rex’s decision-making and
operational activities at the mine site that are
ultimately of interest or benefit to the
wider community.
Photo 6 : Members of the HMCCC following their appointment in
February 2023.
The Company’s direct engagement with the broader community is growing. In
June 2023, over 200 people attended a very successful information night at the
Ardrossan Town Hall. This forum provided the community with an update on the
Hillside Project, and the opportunity to speak with members of the Project
team. On the night, many registrations of interest for business and employment
opportunities were received.
Also, in June 2023, Rex, supported by some of the Project’s partner contractors,
participated in the Ardrossan Area School Resources and Infrastructure
Immersion Day. Around 200 students and teachers from seven schools across the
Yorke Peninsula participated in the hands-on day, which included heavy machinery,
simulators and a Hillside site visit. The day was a huge success, providing firsthand
experiences and insights into career pathways and the industry.
Photo 7 : Thomas Schell using one of the
simulators at the Immersion Day
The Immersion Day has been the
catalyst for more opportunities for
students, including a Certificate II
in Infrastructure and Resources
being offered by the Ardrossan
Area School for students next
year. Rex looks forward to
continuing to support education
and career pathway initiatives as
Hillside develops.
Photo 8 : Students at the Ardrossan Area School Resources and Infrastructure Immersion Day.
2Government of South Australia (2016). Department for Energy and Mining: South Australia’s Copper Strategy. Adelaide, South Australia.
ANNUAL REPORT
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REX MINERALS LTD
REVIEW OF OPERATIONS (Continued) for the year ended 30 June 2023
HILLSIDE PROJECT – SOUTH AUSTRALIA (CONTINUED)
Community (Continued)
In March 2023, the Narungga Nation
consent determination ceremony was
held at Point Pearce. Rex supported
this important process and would like
to honour the memory of Tauto
Sansbury, a tireless campaigner for
the Narungga and all Aboriginal
people. Tauto is survived by his
partner Grace (photo published with
permission of the family).
Photo 9 : Narungga people pictured alongside Federal Court of Australia representatives at
the handing down of the determination, including a photo of Tauto Sansbury. (Main Photo
courtesy of YPCT).
Rex continued its support of the Playford Trust
Scholarship program in 2023 and participated in the
Annual Resources Sector Awards Night on 22 June
2023. The Company supports two students each year
with their studies, one under the Playford Trust
Resources Sector Engineering Scholarship and the
second, in conjunction with the SA Government, being
the Playford Trust Resources Sector Honours
Scholarship. Rex is proud to continue its association
with the Playford Trust.
Photo 10 : Katherina Mazai-Ward: 2023 Resources Sector Honours
Scholarship, Tate Parsons: 2023 Resources Sector Engineering
Scholarship, Richard Laufmann: Rex CEO.
SOUTH AUSTRALIAN TENEMENT SCHEDULE at 30 June 2023
South Australia
Tenement
EL59811
EL61361
EL6143
EL61891
EL62451
EL6455
EL6497
EL6515
EL6531
ML6438
EML6439
MPL146
Location
Lease Status
Area Type
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.
Area
68
91
51
328
1,091
74
254
257
21
2,998
225
94
Date
22/06/2022
19/03/2023
15/04/2023
01/08/2022
01/08/2022
04/11/2024
27/07/2025
20/09/2025
09/06/2025
15/09/2035
15/09/2026
15/09/2035
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REX MINERALS LTD
REVIEW OF OPERATIONS (Continued) for the year ended 30 June 2023
HOG RANCH GOLD PROPERTY – NEVADA, USA
Overview
On 16 May 2023, Rex announced that it had commenced a review to accelerate exploration and substantially increase the
scale and therefore value of Hog Ranch. The review will consider a suite of funding alternatives and also take into account
recent inbound interest in the Property.
Rex believes that fast-tracking a substantial exploration program and subsequent feasibility studies at Hog Ranch is likely
to provide a unique opportunity to define and develop a large gold operation, across what is already a significant “Gold
Trend.” The current mineralised trend extends for approximately 16km. The operational strategy planned by Rex aims to
define and enhance the potential at Hog Ranch with specific focus on:
(cid:129) Substantially expanding the shallow oxide Mineral Resource at the Krista and Bells Project locations
(up from the current 2.1Mozs oxide portion of the gold Resource)
(cid:129) Building on the gravity, soil sampling and 3D induced polarisation (IP) data which indicates that considerable
sulphide hosted gold exists around the Airport Project location
(cid:129) Exploring for the most well-endowed part of Hog Ranch which is interpreted to exist at depth at Krista West and
the White Mountain Project locations; and
(cid:129) Commencing feasibility studies focusing on a new large-scale open-pit and heap leach gold operation at Bells and
Krista combined, targeting circa 200kozs gold per annum.
The Company will explore various options for Hog Ranch, including a review of recent inbound expressions of interest,
joint ventures and other funding options or partnerships. Rex has appointed Treadstone to assist and manage the Hog
Ranch Strategic Review.
Photo 11 : Hog Ranch Gold Property.
Regional Survey Results and Interpretation
Rex completed a suite of regional programs, including a large-scale, regional soil sampling (see ASX announcement
19 December 2022) to provide a clearer understanding of the greater potential of the broader Hog Ranch Property.
The datasets now completed are largely the culmination of the past two years’ exploration effort. These new datasets, in
conjunction with a number of RC drilling campaigns, have resulted in a substantial increase to the Mineral Resource and
a much larger portfolio of targets which exist along an interpreted “Gold Trend.” This defined “Gold Trend” appears to
extend for up to 16km in length across the host rock Caldera Complex that makes up the host rocks to the gold
mineralisation at Hog Ranch (see Figure 5 on P13).
ANNUAL REPORT
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REX MINERALS LTD
REVIEW OF OPERATIONS (Continued) for the year ended 30 June 2023
HOG RANCH GOLD PROPERTY – NEVADA, USA (CONTINUED)
Regional Survey Results and Interpretation (Continued)
Further to the regional soil sampling,
Rex has also completed a gravity
survey focused on the Gillam
Prospect (see ASX announcement
19 December 2022) to identify major
breaks or trends which may also line
up prospective faults that appear in
the magnetic data and soil sampling
data. Rex interprets that the large
deep-seated structures which may be
important to the development of the
gold mineralisation are reflected in
the gravity data (see Figure 6 below).
Figure 5 : Regional plan view map of Hog Ranch with the results from a key
pathfinder element Arsenic.
Figure 6 : Results from recent Gillam gravity survey (left) compared with the magnetic survey (right).
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REX MINERALS LTD
REVIEW OF OPERATIONS (Continued) for the year ended 30 June 2023
HOG RANCH GOLD PROPERTY – NEVADA, USA (CONTINUED)
Drilling Results Summary
A total of 15 RC drill holes
were completed at Hog
Ranch over the Krista,
Airport and Bells Project
locations (see ASX
announcements on 19 July
2022 and 12 October
2022). The results from the
RC drilling continued to
indicate that the historical
drilling, which was largely
completed in the late
1980’s, is under-calling the
gold content compared to
the modern RC drilling
programs (see Figure 7).
Figure 7 : Cross Section of HR22-018 shown relative to the shallow and mostly vertical
historical RC drilling information.
NEVADA, USA TENEMENT SCHEDULE at 30 June 2023
As at 30 June 2023, 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
Claimed
NHR 31-100
Washoe County
Claimed
NHR 101-232
Washoe County
Claimed
NHR 233-417
Washoe County
Claimed
NHR 418-434
Washoe County
Claimed
GL 1-104
Washoe County
Claimed
GL 105-177
Washoe County
Claimed
GL 178-354
Washoe County
Claimed
1Total Area comprises the area of each Lode Mining Claim, i.e. 1,500’ x 600’.
ANNUAL REPORT
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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
REX MINERALS LTD
REVIEW OF OPERATIONS (Continued) for the year ended 30 June 2023
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 (2022) price assumptions for the Stage 1 life of the operation are copper US$3.92/lb;
gold US$1,610/oz and exchange rate of AUD:USD $0.70.
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REX MINERALS LTD
DIRECTORS’ REPORT For the year ended 30 June 2023
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 2023
and the auditor’s report thereon.
DIRECTORS
The following persons were Directors of the Company at any time during the financial year and remain so as at the date of
this report. There have been no new Directors appointed since the end of the financial year to 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 Smith is a Non-Executive
Director of VHM Limited.
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 chief executive officer 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 chief executive officer 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
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REX MINERALS LTD
DIRECTORS’ REPORT (Continued) for the year ended 30 June 2023
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) (Geology);
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. Amber has a background in accounting and is a Certified Practicing
Accountant (CPA). Amber 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).
Greg is the former managing director and chief executive officer of Newcrest Mining
Limited (including six years as chief financial officer and 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 chief financial officer) 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 chief financial officer 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.
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.
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REX MINERALS LTD
DIRECTORS’ REPORT (Continued) for the year ended 30 June 2023
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
A
6
6
6
6
5
B
6
6
6
6
6
A
3
3
3
3
3
B
3
3
3
3
3
A
2
2
1
2
2
B
2
2
2
2
2
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 2023 and was approved by the Board on 11 September 2023.
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, we delivered on a range of key activities detailed below:
(cid:129) At Hillside:
>
>
>
>
>
>
(cid:129) At Hog Ranch:
>
Completed the Optimised Feasibility Study
Progressed Operational Readiness plans
Following completion of the 2022 3D seismic survey, two deep diamond drill holes were completed
Appointed Macquarie Capital as Financial Adviser to assist in managing a structured partnering process
Managed due diligence requests and group site visits
Continued to build a key technical and financial team in South Australia.
Completed a suite of regional programs to enable the Company to better understand the greater potential of
the broader Hog Ranch Property
Commenced a Strategic Review of Rex’s options to accelerate exploration, scale and value of the Property
Appointed Treadstone to assist with the Strategic Review
Hosted site visits and due diligence queries
>
>
>
(cid:129) Continued to explore options for our highly prospective Iron Oxide Copper Gold (IOCG) tenements in South Australia.
OPERATING AND FINANCIAL REVIEW
The income statement shows a loss after tax of $24.8 million (2022: $12.8 million) for the year. The Group has no debt.
As at 30 June 2023, the Group had a cash position of $6.6 million (2022: $44.1 million). Operating activities resulted in
a net cash outflow for the year of $25.4 million (2022: $12.4 million). Further information on operating and financial
performance is set out in the Operations Review.
ANNUAL REPORT
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REX MINERALS LTD
DIRECTORS’ REPORT (Continued) for the year ended 30 June 2023
SIGNIFICANT CHANGES IN THE STATE OF AFFAIRS
There were no significant changes in the state of affairs of the Group during the financial year.
DIVIDENDS PAID OR RECOMMENDED
The Directors do not recommend the payment of a dividend and no amount has been paid or declared by way of a dividend
to the date of this report.
EVENTS SINCE THE END OF THE FINANCIAL YEAR
On 3 August 2023, the Company announced that it had successfully raised $8.0 million, via a placement to institutional,
professional and sophisticated investors. As part of the placement, 20.0 million unquoted options were issued on completion
of the placement on 10 August 2023.
On 1 September 2023, 3,866,666 shares were issued on the exercise of options to participants of the Option Incentive Plan (OIP).
On 1 September 2023, 3,750,000 options were issued as part of the OIP. Options expire on 2 August 2027.
Options are exercisable at a price of 22.0 cents each and options will vest in three equal tranches.
Other than mentioned above, no matters or circumstances have arisen since 30 June 2023 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 bias 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.
2023 2022
$ $
Audit and review of financial statements 58,600 51,000
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REX MINERALS LTD
LETTER FROM THE REMUNERATION COMMITTEE CHAIRMAN
For the year ended 30 June 2023
Dear Fellow Shareholder,
On behalf of the Board, I am pleased to present the Remuneration Report for FY23, which outlines the remuneration
outcomes for the Non-Executive Directors and key Executives of the Company.
Financial Year 2023 in review
The past financial year has seen significant progress for Rex across many fronts. Against a backdrop of the challenging
global financial and economic conditions, rising inflation, and volatility in commodity and capital markets, Rex released an
Optimised Feasibility and Definition Phase Engineering Study in December 2022. This built in immediate and future
expansion options that repositioned Hillside’s project economics and outlook. Hillside remains one of the most significant
undeveloped copper-gold projects in Australia.
With funding now the primary focus of the Company, in February 2023, we appointed Macquarie Capital to identify
potential project partners for Hillside, and in parallel we are progressing a senior debt financing process, with strong
interest from potential partners and major banks.
At the Hog Ranch Property in Nevada, we have continued to progress our understanding of the nature and extent of the
mineralisation, increasing our confidence in the potential for Hog Ranch to become a significant gold operation. In May
2023, we appointed Treadstone to conduct a strategic review of the Hog Ranch Project, including funding alternatives and
potential partnering opportunities.
Health, Safety and Environment (HSE) outcomes for FY23 were again excellent, with no lost time, medically treated nor
significant injuries or incidents.
Our Approach to Remuneration
The Remuneration Committee’s objective is to ensure that our remuneration framework delivers outcomes which have a
clear link to Company and individual performance, enhance shareholder value, and support and are consistent with Rex’s
long-term strategy and values. To achieve this, Rex has sought to create a remuneration framework to:
(cid:129) Attract and retain talented, highly capable personnel
(cid:129) Ensure remuneration outcomes which encourage and reward high performance consistent with Rex’s values
and culture
(cid:129) Align remuneration outcomes with shareholder value; and
(cid:129) Remunerate fairly and reasonably relative to Rex’s scale and stage of development.
FY23 Remuneration Framework Review
In FY23, the Remuneration Committee undertook a review of Rex’s remuneration and incentives structures, policies and
processes. The review was conducted to ensure that Rex’s remuneration framework is “fit for purpose” to drive strong
individual and corporate performance through our transition from the exploration to the development phase of the
Hillside Project.
We engaged Mercer Consulting (Australia) Pty Ltd (Mercer) as the Company’s independent remuneration adviser to
provide a benchmarking survey for both executive and non-executive fixed and variable remuneration going forward.
A key outcome of the review has been the decision, consistent with market practice of the majority of ASX-listed
companies, to introduce a cash and performance rights based Short Term Incentive Plan (STI) and a performance rights
based Long Term Incentive Plan (LTI).
However, whilst the frameworks and policies underpinning these Plans have been developed, our intention is to implement
the resulting changes once the Hillside Project has reached a Final Investment Decision and achieved financial close. This
reflects the fundamental change underway within Rex as we transition from the exploration and planning stage to the
development stage of Hillside. We therefore expect to provide further detail of the STI and LTI plans in the FY24
Remuneration Report.
ANNUAL REPORT
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REX MINERALS LTD
LETTER FROM THE REMUNERATION COMMITTEE CHAIRMAN
(Continued) for the year ended 30 June 2023
Fixed Remuneration in FY23
Rex has reviewed and set fixed remuneration for Key Management Personnel (KMP) with reference to the Mercer
benchmarking survey and other market relativities. Of note, the Remuneration Committee reviewed the base fixed
remuneration of the CEO and the CFO, which had not been increased since 2015. In these two cases, the Committee
determined that salary increases were warranted, as the fixed remuneration for these key executives had fallen well below
that of their peer group. These adjustments are reflected in Remuneration expenses for Executive KMP table, within
this report.
There were no other changes made to KMP fixed remuneration during FY23.
Short-Term and Long-Term Incentives in FY23
In FY23 there were no STI or LTI awards made to any KMP. As stated above, our intention is to introduce contemporary
STI and LTI plans once the Hillside Project has reached a final investment decision and achieved financial close.
Issue of Options to Directors and Key Executives
The Company is very pleased to have established an experienced Board and Executive team with substantial relevant
corporate and technical expertise and with a strong history of success in financing and developing mining operations.
As part of the remuneration review, Rex’s Board resolved to grant Directors and Key Executives unquoted options which
vest on the successful delivery of significant Hillside Project milestones. Subject to shareholder approval, a total of 30
million unquoted options are proposed to be issued with five million options each to the three Non-Executive Directors and
three Key Executives (CEO, CFO and COO). The options will have a 4-year term and will only vest on the achievement of
key Hillside Project milestones.
The proposed exercise price of $0.40 represents a 70% premium to the 5-day VWAP at the grant date, ensuring that all
shareholders will to see the benefit of a meaningful appreciation in the share price before the options are ‘in the money’.
This proposed option grant aligns with the objective of creating long-term shareholder value by setting significant targets
that will have a material, beneficial impact on the enterprise value of the Company. Rex’s Directors and Key Executives
have consistently shown their strong personal and financial commitment to the Company and this issue of options further
ensures their alignment and retention through the development phase of the Hillside Project.
The Company will seek shareholder approval for the issue of all options at its Annual General Meeting to be held in
November 2023. Full details of the terms will be provided in the Company’s Notice of Meeting.
I trust that the above summary outlines our thinking and key decision drivers for FY23.
Mr Andrew Seaton
Chair of the Remuneration Committee
l
2 0 2 3
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21
REX MINERALS LTD
DIRECTORS’ REPORT (Continued) for the year ended 30 June 2023
REMUNERATION REPORT – AUDITED
The Directors present the Remuneration Report for the year ended 30 June 2023, outlining key aspects of the
remuneration policy and framework, and the remuneration awarded during the year.
KEY MANAGEMENT PERSONNEL
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 major activities of the Company and the Group.
The following persons currently act as Directors and other KMP of the Group. Except as noted, the named persons held
their current positions during the year ended 30 June 2023 and up to the date of this report.
Non-Executive Directors
Mr Ian Smith
Mr Greg Robinson
Mr Andrew Seaton
Executives
Mr Richard Laufmann
Ms Amber Rivamonte
Mr Jason Schell
Mr Peter Bird
Mr Peter Larsen
Ms Cherie Leeden
Chairman
Director and Chair of the Audit & Risk Committee
Director and Chair of the Remuneration Committee
Chief Executive Officer & Managing Director
Chief Financial Officer & Director of Finance
Chief Operating Officer
Executive General Manager Investor Relations & Business Development
Executive General Manager Legal (appointed 16 November 2022)
Local Director – Hog Ranch
REMUNERATION POLICY
The Company’s remuneration policy seeks to create a reward framework that drives individual and Company performance
in line with the Company’s long-term corporate strategy and short-term goals and targets, and delivers long-term
shareholder value, through the following remuneration principles:
(cid:129) Creating a strong link between performance and short and long-term reward
(cid:129) Maintaining fair, consistent and equitable remuneration practices which align with the Company’s values and vision
(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) Attracting and retaining talented Executives, noting both the cyclical and competitive nature of the market.
The Company will continue to seek guidance in the governance of its remuneration strategy from a variety of sources,
to remain transparent and consistent with industry standards, whilst ensuring what we implement continues to be fit
for purpose.
The Remuneration Committee and ultimately the Board are responsible for determining and reviewing remuneration
arrangements for the Directors and other KMP.
ELEMENTS OF REMUNERATION
Fixed remuneration
Fixed remuneration consists of base salary (which is calculated on a total cost basis), as well as leave entitlements and
employer contributions to superannuation funds.
Remuneration levels are reviewed annually through a process that considers individual, segment and overall performance
of the Group. Market research provides analysis and guidance for remuneration.
Performance – linked remuneration
Performance linked remuneration may include both short-term and long-term incentives, and is designed to reward senior
executives for meeting or exceeding their financial and personal objectives. The short-term incentive is an ‘at risk’ bonus
provided in the form of cash, while the long-term incentive is provided as options over ordinary shares of the Company
pursuant to the terms and conditions of the options.
ANNUAL REPORT
l
2 0 2 3
l
22
REX MINERALS LTD
DIRECTORS’ REPORT (Continued) for the year ended 30 June 2023
REMUNERATION REPORT – AUDITED (CONTINUED)
ELEMENTS OF REMUNERATION (CONTINUED)
Short-term incentive
The short-term incentive (STI) is a discretionary bonus provided in the form of cash or shares. 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. There were no cash bonuses paid or payable during FY23.
Long-term incentive
The long-term incentive (LTI) is provided as options over ordinary shares of the Company 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.
Proposed changes to remuneration in FY24
As noted in the Remuneration Chairman’s letter, Rex is proposing to introduce new Short-Term Incentive (STI) and Long-
Term Incentive (LTI) plans for eligible employees in FY24 to further strengthen alignment between individual and
corporate performance and shareholder value.
Proposed Short-Term Incentive
The proposed performance-based STI includes detailed corporate and individual performance measures, and initial
invitations may be issued to eligible Rex employees in FY24. The STI will offer cash, performance rights, or a combination
of these, at the Board’s discretion, subject to satisfaction of corporate and individual performance measures.
The STI will measure participating employee annual performance against a balanced scorecard of weighted company and
individual key performance indicators (KPI’s), with reward outcomes based on achievement of threshold and stretch targets.
Proposed Long-Term Incentive
The proposed performance-based LTI, will measure corporate performance, and initial invitations to eligible Rex
employees may be issued in FY24. The LTI will offer performance rights, at the Board’s discretion, subject to satisfaction
of corporate performance measures.
The LTI will measure compound annual share price performance over a three-year period with vesting based on the
achievement of defined relative and absolute share price performance outcomes.
Consequences of performance on shareholder wealth
The variable components of the Group’s Executives’ remuneration (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)
2023
$
24.8
2022
$
12.8
2021
$
8.8
2020
$
5.2
2019
$
5.1
Closing share price at financial year’s end ($)
0.230
0.135
0.350
0.070
0.053
l
2 0 2 3
l
23
REX MINERALS LTD
DIRECTORS’ REPORT (Continued) for the year ended 30 June 2023
REMUNERATION REPORT – AUDITED (CONTINUED)
Contractual arrangements with Executive KMP’s
In line with Group policy, the Group has entered into contracts with each of its Executives, details of which are
outlined below:
Component
Base Salary
STI
LTI
CEO description
$500,000
Senior Executive description
Range between $333,000 and
$450,000 FTE
Provides for eligibility of an STI plan, at rules and rates to be finalised by
the Board.
At discretion of the Board, under terms and conditions of the Option Incentive
Plan (OIP) (approved by Shareholders at the 2021 AGM).
Contract duration
Ongoing contract
Notice by individual/company
3 months
3 months
Termination of employment
(without cause) or by the individual
Executives are entitled to receive 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). Under the
OIP rules, 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 Schell’s contract provides for a one-time completion bonus, on the achievement of certain milestones related to the
Hillside Project and for the provision of a motor vehicle.
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 OIP and is not entitled to
an STI or redundancy payment.
ANNUAL REPORT
l
2 0 2 3
l
24
REX MINERALS LTD
DIRECTORS’ REPORT (Continued) for the year ended 30 June 2023
REMUNERATION REPORT – AUDITED (CONTINUED)
Remuneration expenses for Executive KMP
The following table shows details of the remuneration expense recognised for the Group’s Executive KMP for the current
and previous financial year measured in accordance with the requirements of the accounting standards.
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25
REX MINERALS LTD
DIRECTORS’ REPORT (Continued) for the year ended 30 June 2023
REMUNERATION REPORT – AUDITED (CONTINUED)
Non-Executive Directors
Total remuneration for all Non-Executive Directors, as approved by shareholders at the Company’s 2011 AGM, is not to
exceed $500,000 per annum and is set based on advice from external advisors with reference 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. Directors’ base fee remuneration was reduced in January 2016 and has not been
adjusted since, from time-to-time Rex has issued options rather than adjust the base fees.
Non-Executive Director remuneration
Non-Executive Directors
Mr Ian Smith1
Mr Greg Robinson2
Mr Andrew Seaton3
Former
Mr Ron Douglas4
Total Non-Executive Director Remuneration
Base Fee
$
Super-
annuation
$
Fair value
options(a)
$
Total
$
110,500
100,000
60,000
64,500
60,000
35,000
–
48,462
230,500
247,962
–
10,000
6,300
1,500
6,300
3,500
–
4,846
12,600
19,846
–
110,500
5,723
10,146
22,413
13,480
11,781
115,723
76,446
88,413
79,780
50,281
–
–
5,723
59,031
23,626
45,640
266,726
313,448
Year
2023
2022
2023
2022
2023
2022
2023
2022
2023
2022
Notes in relation to the table of Non-Executive Directors’ remuneration
(a) 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. The value disclosed is the
portion of fair value of the options recognised as an
expense in each reporting period.
1. Mr Smith sought approval from the ATO for an SGC exemption and received additional fees in lieu
of superannuation for the FY2023 year, his total base fees remained the same.
2. Mr Robinson sought approval from the ATO for an SGC exemption and received additional fees in
lieu of superannuation for nine months of the FY2022, his total base fees remained the same.
3. Mr Seaton commenced 1 December 2021.
4. Mr Douglas retired effective 21 April 2022.
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 OIP. 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 did not issue any options and issued 0.1 million ordinary shares as a result of the exercise of
options (all to non-KMP participants of the OIP).
ANNUAL REPORT
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26
REX MINERALS LTD
DIRECTORS’ REPORT (Continued) for the year ended 30 June 2023
REMUNERATION REPORT – AUDITED (CONTINUED)
Shares under option (continued)
Options over ordinary shares of the Company at 30 June 2023:
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
7,633,334
5,000,000
200,000
280,000
7,000,000
1,000,000
21,113,334
Since 30 June 2023, 3,866,666 options at an issue price of 7.0 cents have been exercised by KMP and other participants
of the OIP. 20,000,006 options were issued on 10 August 2023 at an issue price of 30.0 cents and 3,750,000 options
were issued on 1 September 2023 at an issue price of 22.0 cents. The total options on issue at the date of this report are:
40,996,674.
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 Jason Schell
Mr Peter Bird
Mr Peter Larsen
Ms Cherie Leeden
Held at
30 June
2022
Number of
options
granted
Number of
options vested
and
exercisable
% of
options
vested
Number of
options
exercised
Held at
30 June 2023
or date ceased
being KMP
–
200,000C
280,000D
5,000,000B
1,500,000A
3,500,000E
3,500,000E
–
2,000,000A
–
–
–
–
–
–
–
–
–
–
133,333
93,333
3,333,333
1,500,000
1,166,666
1,166,666
–
–
66
33
66
100
33
33
–
2,000,000
100
–
–
–
–
–
–
–
–
–
–
200,000
280,000
5,000,000
1,500,000
3,500,000
3,500,000
–
2,000,000
Since 30 June 2023 and to the date of this report: Ms Rivamonte has exercised 1,500,000 options, at an exercise price
of 7.0 cents bringing her total to zero; Ms Leeden has exercised 1,000,000 options, at an exercise price of 7.0 cents,
bringing her total to 1,000,000; Mr Peter Larsen has received 2,000,000 options at an exercise price of 22.0 cents,
bringing his total to 2,000,000.
The fair value of the unquoted 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
6 Mar 2020
1 Dec 2020
28 May 2021
26 Nov 2021
10 Mar 2022
Fair value per option at grant date
2.38 cents
6.6 cents
19.3 cents
11.6 cents
12.8 cents
Exercise price per option
7.0 cents
17.5 cents
47.0 cents
33.0 cents
25.3 cents
Expiry date
29 Feb 2024
30 Nov 2024
28 May 2025
24 Nov 2025
2 Mar 2026
All options vest over three years in three equal tranches.
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REX MINERALS LTD
DIRECTORS’ REPORT (Continued) for the year ended 30 June 2023
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 OIP. 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 Jason Schell
Mr Peter Bird
Mr Peter Larsen
Ms Cherie Leeden
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
–
–
–
–
–
–
–
–
–
–
10,146
13,480
59,957
2,713
228,111
228,111
–
5,426
–
3,909
7,320
15,557
–
136,336
136,336
–
–
–
–
–
–
–
–
–
–
–
1. The 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.
2. The 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.
3. The fair value of options yet to be expensed is the value yet to be allocated to remuneration as per the vesting period.
4. The 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 Jason Schell
Mr Peter Bird
Mr Peter Larsen
Ms Cherie Leeden
Held at
30 June 2022
or date became
KMP
Received on
exercise of option
Acquired or sold
during the year
Held at 30 June
2023 or date
ceased being
KMP
1,700,000
1,958,334
500,000
8,419,893
6,326,909
542,034
–
–
1,000,000
–
–
–
–
–
–
–
–
–
–
600,000
–
–
–
–
–
–
–
1,700,000
2,558,334
500,000
8,419,893
6,326,909
542,034
–
–
1,000,000
Since 30 June 2023 and to the date of this report: Ms Rivamonte has received 1,700,000 shares on the exercise of options,
bringing her total shares to 8,026,909; Ms Leeden has received 1,000,000 shares on the exercise of options, bringing her
total shares to 2,000,000.
ANNUAL REPORT
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REX MINERALS LTD
DIRECTORS’ REPORT (Continued) for the year ended 30 June 2023
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 2022
Acquired during
the year
Converted
during the year
Held at
30 June 2023
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.
Remuneration consultants
During the year, Mercer Consulting (Australia) Pty Ltd, as an independent Remuneration Adviser, provided bench-
marking survey data, which was used in conjunction with other survey data available in the market to consider
remuneration outcomes.
Voting of shareholders at last year’s Annual General Meeting
Rex received more than 88% approval of its Remuneration Report for the 2022 financial year. Shareholders attending the
Annual General Meeting were given an opportunity to ask questions, and did not provide any specific feedback on the
Remuneration Report.
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 51 and forms part of the Directors’ Report for the year
ended 30 June 2023.
Dated at Melbourne this 11th day of September 2023.
Signed in accordance with a resolution of the Directors:
Mr Richard Laufmann
Managing Director
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REX MINERALS LTD
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As at 30 June
2023 2022
Note $000 $000
Current assets
Cash and cash equivalents 7 6,568 44,139
Trade and other receivables 2,630 411
Prepayments 830 1,019
Total current assets 10,028 45,569
Non-current assets
Exploration and evaluation expenditure 9 3,243 3,243
Property, plant and equipment 10 26,342 14,263
Water infrastructure 4,076 4,076
Total non-current assets 33,661 21,582
Total assets 43,689 67,151
Current liabilities
Trade and other payables 11 1,519 1,144
Employee benefits 12 1,169 793
Total current liabilities 2,688 1,937
Non-current liabilities
Employee benefits 12 64 106
Total non-current liabilities 64 106
Total liabilities 2,752 2,043
Net assets 40,937 65,108
Equity
Issued capital 13(a) 264,855 264,846
Reserves 13(d) 1,775 1,140
Accumulated losses (225,693) (200,878)
Total equity 40,937 65,108
The notes on pages 34 to 50 are an integral part of these financial statements.
ANNUAL REPORT
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REX MINERALS LTD
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND
OTHER COMPREHENSIVE INCOME
For the year ended 30 June
2023 2022
Note $000 $000
Finance income 537 92
Government grants – 92
Corporate and compliance expense (2,143) (1,318)
Depreciation expense 10 (105) (41)
Employee benefits expense 14 (5,661) (3,295)
Marketing expense (310) (220)
Exploration and evaluation expense (17,054) (8,344)
Foreign currency (loss)/gain (82) 257
Loss before tax (24,818) (12,777)
Income tax benefit 15 – –
Loss for the period after tax (24,818) (12,777)
Other comprehensive income – –
Total comprehensive loss attributable to members of Rex Minerals Ltd (24,818) (12,777)
Loss per share attributable to members of Rex Minerals Ltd
Basic loss per share (cents) 16 (4.19) (2.30)
Diluted loss per share (cents) 16 (4.19) (2.30)
The notes on pages 34 to 50 are an integral part of these financial statements.
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REX MINERALS LTD
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the year ended 30 June
Issued Share based Accumulated Total
capital payments losses equity
reserve
Note $000 $000 $000 $000
Balance at 1 July 2022 264,846 1,140 (200,878) 65,108
Issue of ordinary shares 13(a) 9 – – 9
Share based payments 13(d) – 638 – 638
Transfer from share based payments reserve – (3) 3 –
Total comprehensive loss for the period – – (24,818) (24,818)
Balance at 30 June 2023 264,855 1,775 (225,693) 40,937
Balance at 1 July 2021 217,502 846 (188,202) 30,146
Issue of ordinary shares 13(a) 50,271 – – 50,271
Cost of share issue (2,927) – – (2,927)
Share based payments 13(d) – 395 – 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
The notes on pages 34 to 50 are an integral part of these financial statements.
ANNUAL REPORT
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32
REX MINERALS LTD
CONSOLIDATED STATEMENT OF CASH FLOWS
For the year ended 30 June
2023 2022
Note $000 $000
Cash flows from operating activities
Cash paid to suppliers and employees (7,211) (4,342)
Exploration and evaluation payments (18,185) (8,741)
Interest received 554 76
Government Grants 51 -
Rehabilitation Bond (2,300) -
Receipts from ATO (GST) 1,652 578
Net cash used in operating activities 17(a) (25,439) (12,429)
Cash flows from investing activities
Acquisition of property, plant and equipment 10 (12,059) (715)
Net cash used in investing activities (12,059) (715)
Cash flows from financing activities
Proceeds from issue of ordinary shares 13 9 50,271
Payment of costs of share issue 13 - (2,927)
Net cash from financing activities 9 47,344
Net decrease in cash and cash equivalents (37,489) 34,200
Cash and cash equivalents at beginning of the period 44,139 9,682
Effect of change in exchange rates (82) 257
Cash and cash equivalents at period end 7 6,568 44,139
The notes on pages 34 to 50 are an integral part of these financial statements.
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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 11 September 2023.
(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 2023, the Group holds cash of $6.568 million and net current assets of $7.340 million. In August 2023,
the Group announced the successful completion of an $8 million placement, that completed on 10 August 2023.
The Group’s principal objective is to create value through the discovery and development of mineral resources and
as such, it does not presently have a source of operating income, rather it is reliant on equity raisings or funds from
other external sources to fund its activities.
The Directors have prepared a cash flow forecast for the twelve-month period from the date of signing this financial
report, noting that the ability to meet minimum ongoing operating commitments and expenditure is contingent on
either the Group securing the Hillside Project debt and equity financing process, or raising additional funds through
the exercise of options, equity raisings or via other sources (including joint ventures or asset sales).
The Directors expect to be successful in future fundraising, and therefore the 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 is appropriate in the circumstances. As the Group has not yet
finalised the debt and equity financing process, these fundraising options remain uncertain at the date of this report.
Should the Group not be successful in obtaining adequate funding from future fundraising, there is a material
uncertainty as to the ability of the Group to continue as a going concern and to realise its assets and extinguish its
liabilities in the ordinary course of business.
(c) Functional and presentation currency
These Group financial statements are presented in Australian dollars, which is the functional currency of all
entities 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.
ANNUAL REPORT
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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.
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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 – 15 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.
ANNUAL REPORT
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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.
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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.
ANNUAL REPORT
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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 2023 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.
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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 2023, 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
2023 $000 $000 $000 $000
Finance income – – 537 537
Government grants – – – –
Losses before tax (including
depreciation and interest expense) 16,646 2,829 5,343 24,818
Depreciation 91 – 14 105
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
7. CASH AND CASH EQUIVALENTS
2023 2022
$000 $000
Bank balances and short-term deposits 6,568 44,139
Cash and cash equivalents 6,568 44,139
The Group’s total cash and funds on deposit of $6.568 million (2022: $44.139 million) is exposed to interest rate
risk and a sensitivity analysis for financial assets and liabilities is disclosed in note 19.
ANNUAL REPORT
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REX MINERALS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
8. DEFERRED TAX ASSETS (DTA) AND DEFERRED TAX LIABILITIES (DTL)
2023 2022
$000 $000
Exploration and evaluation assets (494) (494)
Other assets 1,311 –-
Property, plant and equipment (30) (45)
Provisions 402 191
Equity costs 668 926
Net DTA/(DTL) 1,857 578
Tax losses recognised to the extent of the DTL – –
Derecognition of DTA as not sufficiently certain (1,857) (578)
Total DTA/(DTL) recognised – –
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 $65.638 million (2022: $60.392 million).
9. EXPLORATION
2023 2022
$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
2023 $000 $000 $000
Cost
Balance at 1 July 2022 14,309 1,894 16,203
Additions 11,327 857 12,184
Disposals – (47) (47)
Balance at 30 June 2023 25,636 2,704 28,340
Depreciation
Balance at 1 July 2022 100 1,840 1,940
Depreciation 10 95 105
Disposals – (47) (47)
Balance at 30 June 2023 110 1,888 1,998
Carrying amounts
At 1 July 2022 14,209 54 14,263
At 30 June 2023 25,526 816 26,342
Prepayments at 30 June 2023 includes $0.566 million which represents payments made to secure fixed assets
which are expected to be completed before 30 June 2024 (2022: $0.690 million).
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REX MINERALS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
10. PROPERTY, PLANT AND EQUIPMENT (CONTINUED)
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
11. TRADE AND OTHER PAYABLES
2023 2022
$000 $000
Current
Trade payables 94 14
Accrued expenses 1,425 1,130
Total current trade and other payables 1,519 1,144
Total trade and other payables 1,519 1,144
12. EMPLOYEE BENEFITS PROVISIONS
2023 2022
$000 $000
Current
Annual leave 752 553
Long service leave 417 240
Total current employee benefits provisions 1,169 793
Non-current
Long service leave 64 106
Total non-current employee benefits provisions 64 106
Total employee benefits provisions 1,233 899
ANNUAL REPORT
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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 2022 592,654,254 264,846
Exercise of options 09/11/2022 133,333 0.070 9
Closing balance at 30 June 2023 592,787,587 264,855
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
(b)
Movements in HRCR:
The Company has on issue 15 million Hog Ranch Consideration Rights (HRCR) which convert to Rex
shares on the outcome of the following remaining milestone:
(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.
During the year ended 30 June 2023, no HRCR were converted or cancelled.
(c) Movements in options on issue:
Date of Number of Exercise Expiry
issue options price $ date
Opening balance as at 1 July 2022 21,246,667
Exercise of options 06/03/2020 (133,333) 0.070 29/02/2024
Closing balance as at 30 June 2023 21,113,334
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
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REX MINERALS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
13. EQUITY (CONTINUED)
(d) Movements in share based payment reserve:
$000
Opening balance at 1 July 2022 1,140
Share based payments – options 638
Transfer from share based payments (3)
Closing balance at 30 June 2023 1,775
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
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
2023 2022
$000 $000
Wages and salaries 4,699 2,760
Share based payments 628 352
Increase/(decrease) in liability for annual leave 199 111
Increase/(decrease) in liability for long service leave 135 72
Total employee benefits expense 5,661 3,295
15. INCOME TAX BENEFIT
NUMERICAL RECONCILIATION BETWEEN TAX BENEFIT AND PRE-TAX ACCOUNTING LOSS
2023 2022
$000 $000
Loss before tax for the period (24,818) (12,777)
Income tax benefit using the corporation tax rate of 30% (2022: 30%) (7,445) (3,833)
Non-deductible expenses 192 159
Effect of jurisdictional tax variances 255 250
DTA not recognised – other jurisdiction 595 583
Net effect of tax losses not recognised 6,403 2,841
Total income tax expense/(benefit) on pre-tax net loss – –
ANNUAL REPORT
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REX MINERALS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
16. LOSS PER SHARE
2023 2022
cents cents
Loss per share
Basic loss per share (4.19) (2.30)
Diluted loss per share (4.19) (2.30)
(a) Basic loss per share
The calculation of basic loss per share at 30 June 2023 was based on the loss attributable to ordinary
equity holders of $24.818 million (2022: $12.777 million) and a weighted average number of ordinary
shares outstanding during the financial year ended 30 June 2023 of 592,739,968 (2022: 556,276,809).
(b) Diluted loss per share
The calculation of diluted loss per share at 30 June 2023 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 21,113,334 at 30 June 2023.
17. RECONCILIATION OF CASH FLOWS
(a) Reconciliation of net loss to cash used in operating activities
2023 2022
Note $000 $000
Loss before tax for the period (24,818) (12,777)
Adjustments for non-cash items:
Depreciation 10 105 41
Share based payments 13(d) 638 395
Adjustments for other items:
Foreign currency revaluation 82 (257)
Operating loss before changes in working capital and provisions (23,993) (12,598)
(Increase)/decrease in receivables and prepayments (2,155) (541)
(Decrease)/increase in trade and other payables 375 527
(Decrease)/increase in employee benefits 334 183
Net cash used in operating activities (25,439) (12,429)
18. SHARE BASED PAYMENTS
(a) Description of share based payment arrangements
No options were issued during the financial year ending 30 June 2023.
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.
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
There were no options issued to be valued and no changes in the fair value of all outstanding unquoted
options during the financial year ending 30 June 2023.
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NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
18. SHARE BASED PAYMENTS (CONTINUED)
(c)
Option expense
2023 2022
$000 $000
Option expense 638 395
Total recognised as share based payments 638 395
(d)
Outstanding options at 30 June 2023
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
7,633,334
5,000,000
200,000
280,000
7,000,000
1,000,000
21,113,334
Since 30 June 2023, 3,866,666 options at an issue price of 7.0 cents have been exercised. 20,000,006
options were issued on 10 August 2023 at an issue price of 30.0 cents and 3,750,000 options were issued
on 1 September 2023 at an issue price of 22.0 cents. The total options on issue at the date of this report
are: 40,996,674.
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
2023
Trade and other payables 1,519 (1,519) (1,519) –
1,519 (1,519) (1,519) –
2022
Trade and other payables 1,144 (1,144) (1,144) –
1,144 (1,144) (1,144) –
ANNUAL REPORT
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NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
19. FINANCIAL INSTRUMENTS (CONTINUED)
(d)
Interest rate risk
The Group’s exposure to market interest rates relates primarily to the Group’s short-term deposits.
At balance date, the Group had the following financial assets exposed to interest rate risk:
2023 2022
$000 $000
Cash and cash equivalents 6,568 44,139
Total cash and cash equivalents 6,568 44,139
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 2023, 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)
2023 2022 2023 2022
$000 $000 $000 $000
Group
+1% (100 basis points) 66 441 – –
– 1% (100 basis points) (66) (441) – –
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 (2022: 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 2023 2022
$000 $000
Not later than one year 662 782
Later than one year but not later than five years 662 –
Nevada, USA 2023 2022
$000 $000
Not later than one year 75 73
Later than one year but not later than five years 75 73
Later than five years 5,231 8,145
(b)
Capital commitments
During the year ended 30 June 2023, the Group has not entered into any capital expenditure arrangements
which have outstanding commitments.
2023 2022
$000 $000
Not later than one year – 1,118
Later than one year but not later than five years – –
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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 2023 (2022: $0.020 million).
The Group has future obligations to restore land disturbed under the Mineral Lease. The maximum obligation to
the South Australian Government in respect of the Hillside Project has been assessed at a value of $34.200
million. This has been secured by a $2.300 million cash deposit and there will be a first ranking charge over the
Group’s freehold land holdings.
22. RELATED PARTIES
(a) Parent and ultimate controlling party
Country of
Ownership Interest
Incorporation 2023 2022
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 2023 (2022: nil).
(ii) Loans from Directors
There were no loans from Directors for the year ending 30 June 2023.
(iii) KMP compensation
KMP compensation comprised the following:
2023 2022
$ $
Short-term benefits 2,382,855 1,418,876
Post-employment benefits 141,495 90,361
Share based payments 547,944 375,689
Other long-term benefits 106,250 36,093
3,178,574 1,921,019
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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 20 to 29.
There have been no changes to KMP between 1 July 2023 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 ended 30 June 2023, 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 20 to 29.
23. PARENT ENTITY DISCLOSURES
As at, and throughout, the period ending 30 June 2023, the parent company of the Group was Rex Minerals Ltd.
2023 2022
$000 $000
Result of the parent entity
Loss for the period (24,480) (10,501)
Other comprehensive income – –
Total comprehensive loss for the period (24,480) (10,501)
Financial position of the parent entity at year end
Current assets 6,828 44,473
Total assets 45,728 69,166
Current liabilities 1,758 1,322
Total liabilities 1,822 1,427
Total equity of the parent entity comprising of
Share capital 264,855 264,846
Share based payments reserve 1,775 1,140
Accumulated losses (222,724) (198,247)
Total equity 43,906 67,739
Parent entity contingencies
The Parent entity’s contingencies are the same as the Group’s contingencies as detailed in Note 21.
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REX MINERALS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
24. SUBSEQUENT EVENTS
On 3 August 2023, the Company announced that it had successfully raised $8.000 million via a placement to
institutional, professional and sophisticated investors. As part of the placement, 20 million unquoted options were
issued on completion of the placement on 10 August 2023.
On 1 September 2023, 3,866,666 shares were issued on the exercise of options to participants of the Option
Incentive Plan (OIP).
On 1 September 2023, 3,750,000 options were issued as part of the OIP. Options expire on 2 August 2027.
Options are exercisable at a price of 22.0 cents each and options will vest in three equal tranches.
Other than mentioned above, no item, transaction or event of a material nature or circumstances has 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. AUDITOR’S REMUNERATION
2023 2022
KPMG Australia $ $
Audit services 58,600 51,000
No non-audit services were provided in the current year.
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 20 to 29, 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 2023 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 2023.
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
Managing Director
Dated this 11th day of September 2023.
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Lead Auditor’s Independence Declaration under
Section 307C of the Corporations Act 2001
To the Directors of Rex Minerals Limited
I declare that, to the best of my knowledge and belief, in relation to the audit of Rex Minerals Limited
for the financial year ended 30 June 2023 there have been:
i.
ii.
no contraventions of the auditor independence requirements as set out in the Corporations
Act 2001 in relation to the audit; and
no contraventions of any applicable code of professional conduct in relation to the audit.
_01
PAR_SIG_01
PAR_NAM_01
PAR_POS_01
PAR_DAT_01
PAR_CIT_01
KPMG
Adrian Nathanielsz
Partner
Melbourne
11 September 2023
KPMG, an Australian partnership and a member firm of the KPMG global organisation of independent member firms affiliated
with KPMG International Limited, a private English company limited by guarantee. All rights reserved. The KPMG name and
logo are trademarks used under license by the independent member firms of the KPMG global organisation. Liability limited by
a scheme approved under Professional Standards Legislation.
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Independent Auditor’s Report
To the shareholders of Rex Minerals Limited
Report on the audit of the Financial Report
Opinion
We have audited the Financial Report of
Rex Minerals Limited (the Company).
In our opinion, the accompanying Financial
Report of the Company is in accordance
with the Corporations Act 2001, including:
• giving a true and fair view of the
Group’s financial position as at
30 June 2023 and of its financial
performance for the year ended on
that date; and
The Financial Report comprises:
• Consolidated statement of financial position as at
30 June 2023;
• Consolidated statement of profit or loss and other
comprehensive income, Consolidated statement of
changes in equity and Consolidated statement of cash
flows for the year then ended and Notes including a
summary of significant accounting policies
• Directors’ Declaration.
•
complying with Australian Accounting
Standards and the Corporations
Regulations 2001.
The Group consists of the Company and the entities it
controlled at the year-end or from time to time during the
financial year.
Basis for opinion
We conducted our audit in accordance with Australian Auditing Standards. We believe that the audit
evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Our responsibilities under those standards are further described in the Auditor’s responsibilities for the
audit of the Financial Report section of our report.
We are independent of the Group in accordance with the Corporations Act 2001 and the ethical
requirements of the Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics
for Professional Accountants (including Independence Standards) (the Code) that are relevant to our
audit of the Financial Report in Australia. We have fulfilled our other ethical responsibilities in
accordance with these requirements.
Material uncertainty related to going concern
We draw attention to Note 2 (b) “Basis of measurement” in the financial report. The conditions
disclosed in Note 2 (b) indicate a material uncertainty exists that may cast significant doubt on the
Group’s ability to continue as a going concern and, therefore, whether it will realise its assets and
discharge its liabilities in the normal course of business, and at the amounts stated in the financial
report. Our opinion is not modified in respect of this matter.
In concluding there is a material uncertainty related to going concern we evaluated the extent of
uncertainty regarding events or conditions casting significant doubt in the Group’s assessment of going
concern. This included:
• Analysing the cash flow projections by:
• Evaluating the underlying data used to generate the projections for consistency with other
information tested by us, our understanding of the Group’s intentions, and past results and
practices;
KPMG, an Australian partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International
Limited, a private English company limited by guarantee. All rights reserved. The KPMG name and logo are trademarks used under license by the
independent member firms of the KPMG global organisation. Liability limited by a scheme approved under Professional Standards Legislation.
ANNUAL REPORT
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• Assessing the planned levels of operating cash inflows and outflows, including capital
expenditures, for feasibility, timing, consistency of relationships and trends to the Group’s
historical results, results since year end, and our understanding of the business, industry and
economic conditions of the Group;
• Assessing significant non-routine forecast cash inflows and outflows for feasibility, quantum and
timing. We used our knowledge of the client, its industry and current status of those initiatives to
assess the level of associated uncertainty.
• Reading correspondence with potential financiers to understand the financing options available to
the Group and assess the level of associated uncertainty.
• Evaluating the Group’s going concern disclosures in the financial report by comparing them to our
understanding of the matter, the events or conditions incorporated into the cash flow projection
assessment, the Group’s plans to address those events or conditions, and accounting standard
requirements. We specifically focused on the principle matters giving rise to the material
uncertainty.
Key Audit Matters
Key Audit Matters are those matters that, in our professional judgement, were of most significance in
our audit of the Financial Report of the current period.
These matters were addressed in the context of our audit of the Financial Report as a whole, and in
forming our opinion thereon, and we do not provide a separate opinion on these matters.
In addition to the matter described in the Material uncertainty related to going concern section, we
have determined the matter described below to be the Key Audit Matter.
Assessment of impairment indicators for the Hillside Copper-Gold land and buildings
Land and buildings $25.526m – Note 10
The key audit matter
How the matter was addressed in our audit
The assessment of whether impairment
indicators exist over the carrying value of the
Hillside Copper-Gold Project land and buildings
is a key audit matter due to:
• The significance of the balances to the
financial statements, being 58% of total
assets; and
• The significance of this determination and its
effect on the scope and depth of our work.
The presence of impairment indicators would
necessitate a detailed analysis by the Group
of the recoverable value of the Hillside
Copper-Gold Project land and buildings.
In assessing the presence of impairment
indicators, we focused on the valuation of land
and buildings obtained from the management’s
expert and the existence of any indicators of
impairment since that date.
Together with our valuation specialist we
involved senior audit team members in
assessing this key audit matter.
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 2023 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 management’s expert fair value estimate.
• Assessing the scope, competence and objectivity
of the management’s 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 management’s expert and
checking the data used to recent sale transactions
of comparable land and observable trends.
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Other Information
Other Information is financial and non-financial information in Rex Minerals Limited’s annual reporting
which is provided in addition to the Financial Report and the Auditor’s Report. The Directors are
responsible for the Other Information.
Our opinion on the Financial Report does not cover the Other Information and, accordingly, we do not
express an audit opinion or any form of assurance conclusion thereon, with the exception of the
Remuneration Report and our related assurance opinion.
In connection with our audit of the Financial Report, our responsibility is to read the Other Information.
In doing so, we consider whether the Other Information is materially inconsistent with the Financial
Report or our knowledge obtained in the audit, or otherwise appears to be materially misstated.
We are required to report if we conclude that there is a material misstatement of this Other
Information, and based on the work we have performed on the Other Information that we obtained
prior to the date of this Auditor’s Report we have nothing to report.
Responsibilities of the Directors for the Financial Report
The Directors are responsible for:
• preparing the Financial Report that gives a true and fair view in accordance with Australian
Accounting Standards and the Corporations Act 2001
•
implementing necessary internal control to enable the preparation of a Financial Report that gives
a true and fair view and is free from material misstatement, whether due to fraud or error
• assessing the Group and Company’s ability to continue as a going concern and whether the use
of the going concern basis of accounting is appropriate. This includes disclosing, as applicable,
matters related to going concern and using the going concern basis of accounting unless they
either intend to liquidate the Group and Company or to cease operations, or have no realistic
alternative but to do so.
https://www.auasb.gov.au/admin/file/content102/c3/ar1_2020.pdf
Auditor’s responsibilities for the audit of the Financial Report
Our objective is:
•
•
to obtain reasonable assurance about whether the Financial Report as a whole is free from
material misstatement, whether due to fraud or error; and
to issue an Auditor’s Report that includes our opinion.
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in
accordance with Australian Auditing Standards will always detect a material misstatement when it
exists.
Misstatements can arise from fraud or error. They are considered material if, individually or in the
aggregate, they could reasonably be expected to influence the economic decisions of users taken on
the basis of the Financial Report.
A further description of our responsibilities for the audit of the Financial Report is located at the
Auditing and Assurance Standards Board website
at:https://www.auasb.gov.au/admin/file/content102/c3/ar1_2020.pdf This description forms part of our
Auditor’s Report.
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Report on the Remuneration Report
Opinion
Directors’ responsibilities
In our opinion, the Remuneration Report
of Rex Minerals Ltd for the year ended
30 June 2023, complies with Section
300A of the Corporations Act 2001.
The Directors of the Company are responsible for the
preparation and presentation of the Remuneration Report
in accordance with Section 300A of the Corporations Act
2001.
Our responsibilities
We have audited the Remuneration Report included in
pages 22 to 29 of the Directors’ report for the year ended
30 June 2023.
Our responsibility is to express an opinion on the
Remuneration Report, based on our audit conducted in
accordance with Australian Auditing Standards.
KPMG
Adrian Nathanielsz
Partner
Melbourne
11 September 2023
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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 2023.
DISTRIBUTION OF ORDINARY SHARES
The number of shareholders, by size of holding:
Total % of
Range Holders Units Issued Capital
1 – 1,000 596 218,590 0.04
1,001 – 5,000 1,809 5,491,720 0.93
5,001 – 10,000 1,063 8,454,880 1.43
10,001 – 100,000 2,509 91,602,723 15.45
100,001 – 999,999,999 692 487,019,674 82.15
Total
6,669 592,787,587 100.00
The number of shareholders holding less than
a marketable parcel: 929
TWENTY LARGEST SHAREHOLDERS
The names of the twenty largest shareholdings of quoted ordinary shares are:
Number of % of
Name Shares Held Issued Capital
JP Morgan Nominees Australia Pty Limited 49,010,768 8.27
1.
HSBC Custody Nominees (Australia) Limited 29,983,989 5.06
2.
Citicorp Nominees Pty Limited 20,593,019 3.47
3.
BNP Paribas Nominees Pty Ltd (IB AU Noms Retail client DRP) 9,763,366 1.65
4.
Mr Jun Yao 8,795,778 1.48
5.
Dr Steven G Rodwell 7,509,241 1.27
6.
Mr Simon (Sui Hee) Lee 7,300,000 1.23
7.
S & S Olsen Pty Ltd 6,628,909 1.12
8.
United Overseas Service Management Ltd 5,863,852 0.99
9.
UBS Nominees Pty Ltd 5,784,273 0.98
10.
Panjeta Family Group Pty Ltd (Panjeta Family Group A/C) 5,600,000 0.94
11.
Stone Poneys Nominees Pty Ltd (Chapman Super Fund A/C) 5,553,218 0.94
12.
Silver Rayne Pty Ltd 5,376,909 0.91
13.
Keta Investments Pty Ltd 5,287,497 0.89
14.
National Nominees Limited 5,000,001 0.84
15.
Laufmann Longterm Investments Pty Ltd (Laufmann Super Fund A/C) 4,919,893 0.83
16.
Curious Commodities Pty Ltd (Curious Commodities Trad A/C) 4,500,000 0.76
17.
18.
Piama Pty Ltd (Fena Superannuation Plan A/C) 4,000,000 0.67
19. Mrs Vickie Jane Jones 3,926,594 0.66
20. Mrs Natalie Laufmann 3,500,000 0.59
Total
198,897,307 33.55
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
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ANN
ANNUAL REPORT
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COPPER SA I GOLD NEVADA
LD NEVADA
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