VULCAN ENERGY RESOURCES LIMITED
(formerly known as Koppar Resources Limited)
ABN 38 624 223 132
ANNUAL REPORT
YEAR ENDED 30 JUNE 2020
Vulcan Energy Resources Limited – Annual Report 2020
Contents
Corporate Directory
Directors' Report
Auditor’s Independence Declaration
Consolidated Statement of Profit or Loss and Other Comprehensive Income
Consolidated Statement of Financial Position
Consolidated Statement of Changes in Equity
Consolidated Statement of Cash Flows
Notes to the Consolidated Financial Statements
Directors' Declaration
Independent Auditor’s Report
ASX Additional Information
Corporate Governance Statement
3
4
36
37
38
39
40
41
66
67
71
75
2 | P a g e
Vulcan Energy Resources Limited – Annual Report 2020
Corporate Directory
Board of Directors
Mr Gavin Rezos
Dr Francis Wedin
Dr Horst Kreuter
Ms Ranya Alkadamani
Ms Katharina Gerber
Mr William Oliver
Mr Patrick Burke
Ms Rebecca Morgan
Non-Executive Chairman (appointed 4 September 2019)
Managing Director (appointed 4 September 2019)
Executive Director (appointed 20 December 2019)
Non-Executive Director (appointed 29 April 2020)
Non-Executive Director (appointed 11 May 2020, resigned 1
September 2020)
Non-Executive Director (resigned 19 November 2019)
Non-Executive Director (resigned 31 December 2019)
Non-Executive Director (resigned 4 September 2019)
Company Secretary
Mr Robert Ierace
Registered Office
Level 11, Brookfield Place
125 St Georges Terrace
Perth WA 6005
Telephone: 08 6189 8767
Website: www.v-er.com
Stock Exchange Listing
Listed on the Australian Securities Exchange (ASX Code: VUL)
Auditors
RSM Australia Partners
Level 32, 2 The Esplanade
Perth WA 6000
Solicitors
Steinepreis Paganin
16 Milligan St
Perth WA 6000
Bankers
Westpac Banking Corporation
Level 4, Brookfield Place, Tower Two
123 St Georges Terrace
Perth WA 6000
Share Registry
Automic Share Registry
Level 2, 267 St Georges Terrace
Pert WA 6000
Telephone: 1300 288 664
3 | P a g e
Vulcan Energy Resources Limited – Annual Report 2020
Directors’ Report
The Directors of Vulcan Energy Resources Limited (“Vulcan” or “the Company”) present their report,
together with the financial statements on the consolidated entity consisting of Vulcan Energy Resources
Limited and its controlled entities (the “Group”) for the financial year ended 30 June 2020.
DIRECTORS
The names and particulars of the Company’s directors in office during the financial year and at the date
of this report are as follows. Directors held office for this entire year unless otherwise stated.
Mr Gavin Rezos | Non-Executive Chairman
(Appointed 4 September 2019)
Mr Rezos has extensive Australian and international investment banking experience and is a former
investment banking Director of HSBC Group with regional roles during his career in London, Sydney and
Dubai. Gavin has held Chairman, Board and CEO positions of companies in the materials, technology
and resources sector in Australia, the United Kingdom, the United States and Singapore and was formerly
a non-executive director of Iluka Resources and of Rowing Australia, the peak Olympics sports body for
rowing in Australia. He is a principal of Viaticus Capital.
During the past three years, Mr Rezos held the following directorships in other ASX listed companies:
• Non-Executive Chairman of Resource and Energy Group (current);
Dr Francis Wedin | Managing Director
(Appointed 4 September 2019)
Dr Wedin is a battery raw materials industry executive, with a diverse career spanning four continents
and multiple commodities. Wedin founded the Vulcan Zero Carbon Lithium™ Project in Germany.
Dr Wedin was previously Executive Director of successful ASX-listed Exore Resources Ltd (ASX:ERX).
During this time, he discovered and defined two new JORC lithium resources, on two continents, in under
a year. This included Lynas Find, which was bought by Pilbara Minerals to become part of its large
Pilgangoora Lithium Project, now in production (ASX:PLS).
Francis has a PhD and BSc (Hons) in geology and mineral exploration, and an MBA in renewable energy.
He is a Fellow of the Geological Society, London, and a member of the Australasian Institute of Mining
and Metallurgy. He is bilingual in English and Turkish, with proficiencies in other languages.
During the past three years, Dr Wedin held the following directorships in other ASX listed companies:
• Executive Director of Exore Resources Limited (resigned).
Dr Horst Kreuter | Executive Director
(Appointed 20 December 2019)
Dr. Horst Kreuter is a highly experienced businessman and engineering geologist, with an outstanding
record of project development and consulting in the geothermal sector. Dr Kreuter is CEO of Geothermal
Group Germany GmbH, Karlsruhe, a joint initiative for the world market of notable German companies
active in the geothermal industry.
4 | P a g e
Directors’ Report
He is also CEO of GeoThermal Engineering GmbH (GeoT), a consultancy who are involved in geothermal
project development in Germany and worldwide. He is based in Karlsruhe, local to Vulcan’s Zero Carbon
Lithium™ project area in the Upper Rhine Valley, and has a broad political and corporate network in
Germany.
Vulcan Energy Resources Limited – Annual Report 2020
Ms Ranya Alkadamani | Non-Executive Director
(Appointed 29 April 2020)
Ranya is currently Founder and CEO of Impact Group International, an experienced team of experts
focused on strategic communications advice for innovators, incredible organisations, ASX-listed
companies, and philanthropists that are all doing something that will better our society or environment.
She works extensively in the impact investment space in Australia and internationally and has a strong
network of clients and investors in the clean energy and renewables sector.
She is also a Director of the Impact Investment Summit, Asia Pacific and an Advisory Board member at
Murdoch University.
Ranya was formerly Strategic Communications and External Affairs Director of Andrew Forrest’s
Minderoo Foundation and Minderoo Group; Press Secretary to former Australian Prime Minister, the
Hon. Kevin Rudd during his time as Australian Foreign Minister; and, a spokesperson for the Australian
Department of Foreign Affairs and Trade.
Dr Katharina Gerber | Non-Executive Director
(Appointed 11 May 2020, resigned 1 September 2020)
Katharina holds a Ph.D., M.S., and B.S. degrees in chemistry from University of Bonn. She is fluent in
German, English and Russian.
Katharina is a Project Manager at the California Energy Commission (CEC) where she provides scientific
& technical leadership in determining research priorities for R&D programs with focus on emerging
energy storage technologies and lithium extraction from geothermal brine. In her role at the CEC
Katharina directs and executes requests for proposals (RFPs) and leads evaluation of project applications
& contract bids.
In addition, Katharina participates in multiple interagency working groups, such as the “California
Lithium Valley” initiative, conducting complex technological and market assessments on future
availability of critical minerals used in lithium-ion battery technology, and develops recommendations
for policymakers and stakeholders.
Mr William Oliver | Non-Executive Director
(Resigned 19 November 2019)
Mr Oliver is a geologist with 20 years of experience in the international resources industry working for
both major and junior companies. He has substantial experience in the design and evaluation of resource
definition programmes as well as co-ordinating all levels of feasibility studies. He has direct experience
with bulk commodities having led large scale resource definition projects for Rio Tinto Iron Ore and in
his role as a director of Celsius Coal Ltd.
5 | P a g e
Vulcan Energy Resources Limited – Annual Report 2020
Directors’ Report
Mr Oliver holds an honours degree in Geology from the University of Western Australia as well as a
postgraduate diploma in finance and investment from FINSIA.
During the past three years, Mr Oliver held the following directorships in other ASX listed companies:
• Managing Director of Vanadium Resources Limited (formerly Tando Resources Limited)
(current);
• Non-Executive Director of Minbos Resources Limited (current);
• Non-Executive Director of Celsius Resources Limited (current);
• Non-Executive Director of Aldoro Resources Limited (resigned 20/11/2019); and
• Technical Director of Orion Gold NL (resigned 18 April 2018).
Mr Patrick Burke | Non-Executive Director
(Resigned 31 December 2020)
Mr Burke has extensive legal and corporate advisory experience and over the last 15 years has acted as
a Director for ASX, NASDAQ and AIM listed companies. His legal expertise is in corporate, commercial
and securities law.
During the past three years, Mr Burke held the following directorships in other ASX listed companies:
• Non-Executive Director of Mandrake Resources Limited (current);
• Non- Executive Director of Meteoric Resources NL (current);
• Non- Executive Director of Triton Minerals Limited (current);
• Non-Executive Director of Transcendence Technologies Limited (resigned 20/11/2019);
• Non-Executive Director of Vanadium Resources Limited (formerly Tando Resources Limited)
(resigned 27/11/2019);
•
• Non- Executive Director of WestWater Resources, Inc. (resigned 4 April 2019);
• Non- Executive Director of Bligh Resources Limited (resigned 28 November 2018);
• Non- Executive Director of ATC Alloys Limited (resigned 1 June 2018); and
• Non- Executive Director of Pan Pacific Petroleum NL (resigned 13 November 2017).
Ms Rebecca Morgan | Non-Executive Technical Director
(resigned 4 September 2019)
Rebecca Morgan is a professional geologist and mining engineer with over 16 years of international
mining experience working on projects at all stages of development from grassroots to operations across
a wide range of commodities spanning five continents. Rebecca has extensive knowledge and experience
in resource evaluation, and project assessment.
Ms Morgan holds an honours degree in Applied Geology from Curtin University as well as a postgraduate
diploma in Mine Engineering and a Masters of Engineering Science in Mine Engineering both from
Curtin University.
Ms Morgan does not hold, and has not held over the last 3 years, a directorship in any other publicly
listed company.
6 | P a g e
Directors’ Report
COMPANY SECRETARY
Mr Robert Ierace
(appointed 1 April 2020)
Vulcan Energy Resources Limited – Annual Report 2020
Robert is a Chartered Accountant and Chartered Secretary with over 20 years’ experience, predominately
with ASX and AIM-listed resource and oil and gas exploration and production companies. He has
extensive experience in financial and commercial management including experience in corporate
governance, debt and capital raising, tax planning, risk management, treasury management, insurance,
corporate acquisitions and divestment and farm in/farm out transactions. Robert holds a Bachelor of
Commerce degree from Curtin University, a Graduate Diploma in Applied Corporate Governance from
the Governance Institute of Australia and a Graduate Certificate of Applied Finance and Investment from
the Securities Institute of Australia.
Robert has previously served in senior finance roles with a number of ASX-listed companies including
Gulf Manganese Corporation Limited, Key Petroleum Limited, Amadeus Energy Limited, Kimberley
Diamond Company NL and Rio Tinto Iron Ore.
Mr Mauro Piccini
(resigned 1 April 2020)
Mr Piccini spent 7 years at the ASX and possesses core competencies in publicly listed and unlisted
company secretarial, administration and governance disciplines. Mauro is a Chartered Accountant (CA)
and a member of the Governance Institute of Australia (GIA). Mauro started his career in the Perth office
of Ernst and Young (EY) where he spent several years in their assurance division.
INTERESTS IN SHARES AND OPTIONS OF THE COMPANY
The following table sets out each current Director’s relevant interest in shares, options and performance
rights of the Company as at the date of this report.
Director
Ordinary
Shares
Listed Share
Options
Performance
Rights
Performance
Shares
Mr Gavin Rezos
Dr Francis Wedin
Dr Horst Kreuter
Ms Ranya Alkadamani
Total
3,680,207
11,163,334
553,333
-
15, 396,874
100,000
162,500
-
-
262,500
5,500,000
-
4,500,000
-
10,000,000
-
8,360,000
440,000
-
8,800,000
PRINCIPAL ACTIVITIES
The principal activities of the Company during the year was energy metals exploration in Europe.
REVIEW AND RESULTS OF OPERATIONS
Vulcan Zero Carbon Lithium™ Project, Germany
Project Acquisition
7 | P a g e
Vulcan Energy Resources Limited – Annual Report 2020
Directors’ Report
In July 2019, the Company announced the acquisition1 of the Vulcan Zero Carbon Lithium™ Project in
Germany, via the acquisition of Vulcan Energy Resources Pty Ltd. Vulcan Energy Resources is aiming to
become the world’s first Zero Carbon Lithium™ producer, by producing a battery-quality lithium
hydroxide chemical product with net zero carbon footprint from its combined geothermal and lithium
project, in the Upper Rhine Valley of Germany.
Vulcan will use its unique Zero Carbon Lithium™ process to produce both renewable geothermal energy,
and lithium hydroxide, from the same deep brine source. In doing so, it will fix lithium’s current
problems for the EU market: a very high carbon and water footprint of production, and total reliance on
imports, mostly from China. Vulcan aims to supply the lithium-ion battery and electric vehicle market in
Europe, which is the fastest growing in the world.
1 See ASX announcement 10 July 2019
8 | P a g e
Vulcan Energy Resources Limited – Annual Report 2020
Directors’ Report
Exploration Target
Following the acquisition of the project, the Company’s geological team and consultants engaged in a
data acquisition and interpretation exercise. The Upper Rhine Valley has historically been very well
explored for both hydrocarbons and geothermal brines. This has resulted in large quantities of seismic,
geochemical and geological data available, either for purchase or on public databases. The Company’s
consultants used the data initially available to estimate a very substantial Exploration Target2 range for
its licenses of 10.73 to 36.20 Million Tonnes (Mt) Lithium Carbonate Equivalent (LCE), based on a range
of concentrations from 126 mg/l Li to 190 mg/l Li. Shortly afterwards, the Company commenced a Scoping
Study on the project3, led by Hatch Ltd.
Readily Available
Exploration Data
MoU with Local Utility
In November 2019, Vulcan announced an Memorandum of Understanding (MoU) with a local utility and
geothermal operator4 to initially conduct a Pre-Feasibility Study (PFS) on lithium extraction from the
operator’s project area, and subsequently to earn into the lithium rights on the project, subject to
formation of a Joint Venture (JV). The agreement also allows Vulcan access to data and brine to be used
for lithium extraction test work.
Agreement with German
Geothermal Operator
Brine Sampling & Geochemical Analysis Campaign
Vulcan’s project team conducted brine sampling across a series of geothermal wells in the Upper Rhine
Valley. The aim was to confirm historical lithium grades from the area, to be used in a resource
calculation. This was successful5, with average grades across the area of 181 mg/l Li, including a
maximum recorded grade of 215 mg/l Li.
Uniquely High Lithium Grades,
Heat & Flowrate Combined
2 See ASX announcement 8 August 2019
3 See ASX announcement 26 August 2019
4 See ASX announcement 26 November 2019
5 See ASX announcement 2 December 2019
9 | P a g e
Vulcan Energy Resources Limited – Annual Report 2020
Directors’ Report
Maiden JORC Lithium Resource – Largest in Europe
A Maiden Inferred Mineral Resource Estimation was completed and announced in December 2019, for
13.20 Mt of contained LCE at a grade of 181 mg/l Li, making the Vulcan Zero Carbon Lithium™ resource
the largest lithium resource in Europe, and globally significant6.
A maiden Indicated Mineral Resource Estimate7 was completed in January 2020 on a separate license,
for 722,000 t of contained LCE, bringing the total project to 13.95 Mt contained LCE (Indicated and
Inferred) at 181 mg/l Li. Subsequent to the end of the financial year, this has since been updated again to
include the newly granted Taro license8, taking the total to 15.37 Mt LCE at 181 mg/l Li.
Largest Lithium
Resource in Europe
URVP Resources
Aquifer
Brine
Avg. Li
Avg.
Contained
Contained
Volume
(km3)
Volume
(km3)
Conc.
Effective
Elemental
LCE Million
(mg/l Li)
Porosity
Li
Tonnes
Taro Inferred Resource
15.529
1.475
181
9.50
Resource
Tonnes
267,000
1.42
estimate
Previously disclosed URVP
Inferred Resource estimate
144.489
13.726
181
9.50
2,484,000
13.26
Previously disclosed URVP
8.322
0.749
181
9.00
136,000
0.72
Indicated Resource estimate
Total URVP Indicated
168.34
15.95
181
9.48
2,887,000
15.37
and Inferred Resource
Note 1: Mineral resources are not mineral reserves and do not have demonstrated economic viability.
Note 2: The weights are reported in metric tonnes (1,000 kg or 2,204.6 lbs). Numbers may not add up due to rounding of the
resource values percentages (rounded to the nearest 1,000 unit).
Note 3: The total volume and weights are estimated at average porosities of 9.5%.
Note 4: The Vulcan Li-brine Project estimation was completed and reported using a lower cutoff of 100 mg/L Li.
Note 5: In order to describe the resource in terms of industry standard, a conversion factor of 5.323 is used to convert
elemental Li to Li2CO3, or Lithium Carbonate Equivalent (LCE).
6 See ASX announcement 4 December 2019
7 See ASX announcement 20 January 2020
8 See ASX announcement 31 August 2020
10 | P a g e
Vulcan Energy Resources Limited – Annual Report 2020
Directors’ Report
Completion of Positive Scoping Study
Vulcan completed its Scoping Study9 for the Zero Carbon Lithium™ Project in February 2020. The study
was positive and demonstrated the potential for a combined operation producing both lithium hydroxide
and renewable, geothermal energy from the same operation, with net zero carbon footprint, a world-
first. The study contemplated a sensible ramp-up of operations, initially building a small lithium
extraction plant and subsequently ramping up to a ten well operation with corresponding lithium
production capacity. During the year, Vulcan also took steps to protect its intellectual property
surrounding its Zero Carbon Lithium™ flowsheet and brand.
Dual Revenue
Lithium & Green Energy
Commencement of Pre-Feasibility Study
The Company subsequently commenced its PFS work10, appointing Hatch Ltd. as lithium plant
engineering lead, APEX Geoscience Ltd. for resource modelling and estimation, IBZ Salzchemie GmbH &
Co. for chemical engineering consultancy, GeoT GmbH as geology specialists and gec-co GmbH for
engineering studies for the geothermal plant. The company also commenced Direct Lithium Extraction
(DLE) test work as part of the PFS11. Note: subsequent to the end of the financial year, these studies
returned highly positive results of >90% lithium recoveries12.
DLE & Geothermal
in Germany
Acquisition of Seismic Data Package to Accelerate Project
Vulcan announced13 in May 2020 that it had agreed to acquire a 2D and 3D seismic data package for its
project areas. This package is expected to substantially accelerate the Company’s project development
activities, and to assist with the conversion of Inferred resources to Indicated category. The package will
also assist Vulcan with completing its PFS study, and with production well planning.
Rapidly Advancing
Lithium Project
9 See ASX announcement 21 February 2020
10 See ASX announcement 11 June 2020
11 See ASX announcement 7 April 2020
12 See ASX announcement 3 August 2020
13 See ASX announcement 4 May 2020
11 | P a g e
Vulcan Energy Resources Limited – Annual Report 2020
Directors’ Report
European Support for Zero Carbon Lithium™ Project
Following a series of presentations to EIT InnoEnergy and its Business Investment Platform, as well as
presentations to the Vice Presidents of the European Commission and European Investment Bank14,
Vulcan announced an agreement with EU-backed EIT InnoEnergy for project assistance, including with
permitting approvals and offtake negotiation15. Through the agreement, EIT InnoEnergy will assist
Vulcan with:
• Securing project funding, including the use of applicable EU, national or regional grant
schemes, and liaising with EU project finance and development banks;
• Driving relationships with European lithium off-takers, aimed at the entering of binding off-
take agreements;
• Obtaining and fast-tracking necessary licenses for Vulcan’s operations in Germany and services
with respect to societal/environmental acceptance of the project
Subsequent to the end of the financial year, this was also followed up with a direct investment by EIT
InnoEnergy16.
Project Financially
Supported by the EU
Completion of $4.8m Institutional and ESG Investor Equity Placement
Vulcan raised $4.8m (before costs) through the issue of 12,000,000 fully paid ordinary shares at an issue
price of 40 cents per share in June 2020.
The Placement was significantly oversubscribed and strongly supported by ESG-focused sophisticated
investors, as well as new institutional and sophisticated investors based in Australia and Europe.
The funds raised from the Placement will be used to accelerate the advancement of the Company’s Zero
Carbon Lithium™ Project, in particular:
• Completion of a PFS at the Project, including engineering studies and bench-scale lithium
extraction testwork.
• Purchase of seismic data to fast-track siting and development of geothermal production wells.
The Placement price was undertaken at nil discount to the 15-day Volume Weighted Average Price
(“VWAP”), and an 8% premium to the 30-day VWAP.
Team Appointments
During the year, the Vulcan team was substantially strengthened by the appointment of:
Geothermal expert Dr. Horst Kreuter as Executive Director17.
14 See ASX announcement 20 May 2020
15 See ASX announcement 26 May 2020
16 See ASX announcement 8 July 2020
17 ASX announcement 20 December 2019
12 | P a g e
Vulcan Energy Resources Limited – Annual Report 2020
Directors’ Report
CEO of Geothermal Group Germany GmbH and GeoThermal Engineering GmbH (GeoT). Co- Founder of
Vulcan Zero Carbon Lithium™ Project. Successful geothermal project development & permitting in
Germany and worldwide. Widespread political, investor and industry network in Germany and Europe.
Based in Karlsruhe, local to the project area in the Upper Rhine Valley.
ESG investing and strategic communications expert Ranya Alkadamani as Non-Executive Director18.
Founder of Impact Group International. A communications strategist, focused on amplifying
the work of companies that have a positive social or environmental impact. Experience in working across
media markets and for high profile people, including one of Australia’s leading philanthropists, Andrew
Forrest and Australia’s then Foreign Minister and former Prime Minister, Kevin Rudd. Was personally
behind the global launches of the Walk Free Global Slavery Index, which reached more than 1 billion
people.
German geothermal lithium chemistry expert Dr. Katharina Gerber19 as Non-Executive Director (note:
Dr. Gerber has since moved to Germany to join the management team in a full time capacity).
Awarded her PhD on lithium chemistry magna cum laude (with great distinction) at the University of
Bonn. Most recently focused on lithium extraction from geothermal brine at the California Energy
Commission (CEC). Participates in “California Lithium Valley” initiative. Prior to joining the CEC, she
conducted research developing and characterizing new electrode materials for lithium-ion batteries.
Unique combination of expertise in lithium chemistry and lithium extraction from geothermal brine.
Experienced CFO and Company Secretary Robert Ierace20.
Chartered Accountant and Chartered Secretary with +20 years’ experience. Experience in financial and
commercial management including in corporate governance, debt and capital raising, tax planning, risk
management, treasury management, insurance, corporate acquisitions and divestment and farm
in/farm out transactions. BComm degree from Curtin University, a Grad Dip in Applied Corporate
Governance from the Governance Institute of Australia and a Grad Cert of Applied Finance and
Investment from the Securities Institute of Australia
Direct Lithium Extraction and chemical engineering expert Alex Grant.
Chemical engineer and DLE expert. Co-founded Lilac Solutions, one of the world’s leading direct lithium
extraction technology companies, which raised $20M from Bill Gates’s Breakthrough Energy Ventures.
Highly experienced investment banker and company director Gavin Rezos as Chair21.
Executive Chair/CEO positions of two companies that grew from start-ups to the ASX 300. Extensive
international investment banking experience and was former investment banking Director of HSBC with
senior multi-regional roles in investment banking, legal and compliance functions. Currently Chair of
18 ASX announcement 29 April 2020
19 ASX announcement 11 May 2020
20 ASX announcement 1 April 2020
21 ASX announcement 4 September 2019
13 | P a g e
Vulcan Energy Resources Limited – Annual Report 2020
Directors’ Report
Resource and Energy Group Ltd and principal of Viaticus Capital. Previously Non-Executive Director of
Iluka Resources Ltd, Alexium International Group Ltd and Rowing Australia.
Vulcan founder and lithium industry expert Dr. Francis Wedin as Managing Director22.
Founder of Vulcan Zero Carbon Lithium™ Project. Lithium industry executive since 2014. Previously
Executive Director of ASX-listed Exore Resources Ltd. Three discoveries of JORC Lithium Resources on
two continents including Lynas Find, now part of Pilbara Minerals’ Pilgangoora Project in production
(ASX:PLS). Management & Executive experience in resources sector on four continents; bilingual; dual
Swedish & Australian nationality. PhD & BSc (Hons) in Exploration Geology & MBA in Renewable Energy.
Subsequent to the end of the financial year, the team has been further strengthened by the recruitment
of senior chemical engineer Dr. Thomas Aicher, geologist Elke Zimmermann
Team of World
Leading Experts
Sustainability: Independently Verified Zero Carbon Lithium™ Credentials
During the year, a Life Cycle Assessment (LCA) from cradle-to-gate was carried out for the Vulcan Project
and benchmarked with different lithium industry production routes that could supply the European
market23. The Vulcan Zero Carbon Lithium™ Project is planned to be a combined geothermal energy and
lithium hydroxide monohydrate production project. The results of the study indicate that Vulcan has the
potential to be the first negative carbon lithium project in the world, helping to decarbonize a highly CO2-
intensive product. The Vulcan project has the potential to have the lowest environmental impact, with a
negative greenhouse gas emissions impact due to CO2 emissions being offset through the co-generation
of geothermal energy along with LiOH∙H2O. The Vulcan project was also shown to have the lowest water
use and land footprint of any lithium project in development or in production worldwide.
World-first Zero Carbon
Lithium™ Project
22 ASX announcement 4 September 2019
23 The CO2 Impact of the 2020s Battery Quality Lithium Hydroxide Supply Chain, Dr. Robert Pell, Dr. David Deak, Alex
Grant, ISO-compliant LCA.
https://static1.squarespace.com/static/5c9aa323c46f6d499a2ac1c5/t/5e1cf0d3a12a6a33c900c8ea/1578954965079/The+CO
2+Impact+of+the+2020s+Battery+Quality+Lithium+Hydroxide+Supply+Chain.pdf
14 | P a g e
Vulcan Energy Resources Limited – Annual Report 2020
15 | P a g e
Vulcan Energy Resources Limited – Annual Report 2020
Directors’ Report
Update on Other Energy Metals Projects
The Company continued to explore its extensive energy metals mineral exploration portfolio located in
the Trøndelag region of Norway. The Company received results from rockchip sampling across its Undal
and Nyerbeget Projects carried out in October 2019, which yielded anomalous copper and zinc values24.
At the Undal Project three mine dump samples returned an average of 1.1% Cu and 0.4% Zn, consistent
with historical production grades of 1.15 % Cu & 1.86 % Zn from the Undal underground mine (Source:
Norwegian Geological Survey (NGU) Database). The samples were massive sulphide (>80%), dominantly
pyrite, similar to descriptions of the material mined at the project intermittently until 1971.
Mineralisation at Undal is not outcropping which provides encouragement that historical exploration
may not have been able to identify extensions to the previously mined mineralisation and that modern-
day techniques could aid future exploration in the area.
At the Nyberget Project samples were taken from both the Nyberget mine site and workings in the
surrounding area, as well as some regional samples. A sample from the Nyberget mine site returned 1.9%
Cu + 2.7% Zn, again consistent with previous production and sampling documented by the NGU (refer
ASX Announcement 11 June 2019). The mineralised sample was located in the hangingwall of a
stratiform, pyrite-bearing sulphide horizon conformably emplaced between two greenstone units.
Sampling of the Bergstjern III workings returned a result of 1.1% Pb + 0.3% Zn from a semi-massive
sulphide lens within the chert sequence. The presence of these massive sulphide lenses provides
encouragement for further such occurrences at the same stratigraphic horizon. As detailed previously
historical exploration in the Nyberget-Bergstjern area included geological mapping, ground geophysics
and soil sampling with follow-up exploration was planned but never implemented. During the year, the
Company also undertook a review of its licenses in Norway following initial field reconnaissance and
fieldwork. This review resulted in the relinquishment of some non-core licenses, to enable the Company
to better focus on more prospective areas. Vulcan is reviewing options to best extract value for
shareholders for these projects.
COMPETENT PERSON STATEMENT
The information in this report that relates to Mineral Resources is extracted from the ASX
announcements made by Vulcan on the 31 August 2020, 21 January 2020 and 4 December 2019, which
are available on www.v-er.com. The information in this presentation that relates to the Scoping Study
for the Vulcan Lithium Project is extracted from the ASX announcement “Positive Scoping Study – Vulcan
Zero Carbon Lithium Project”, released on the 21st of February 2020 which is available on www.v-er.com.
The information that relates to exploration results is extracted from the ASX announcements made on
30 January 2020 and 2 December 2019. 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 and that all material assumptions and technical parameters underpinning the estimates
in the relevant market announcements 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 announcements.
24 See ASX announcement 30 January 2020
16 | P a g e
Vulcan Energy Resources Limited – Annual Report 2020
Directors’ Report
CORPORATE
On 19 July 2019, the Company completed a $1.1 million placement to sophisticated and professional
investors. The placement was undertaken at $0.15 per share with 7,333,334 shares issued.
On 30 June 2020 the Company completed a $4.8 million placement to sophisticated and professional
investors. The placement was undertaken at $0.40 per share with 12,000,000 shares issued.
Financial Performance
The financial results of the Group for the year ended 30 June 2020 and period ended 30 June 2019 are:
30-June-20
$
30-June-19
$
6,421,557
8,886,039
95,342
(3,553,359)
(7.37)
3,348,996
3,793,116
56,055
(836,664)
(2.64)
Cash and cash equivalents
Net Assets
Revenue
Net loss after tax
Loss per share (cents per
share)
DIVIDENDS
No dividend is recommended in respect of the current financial year.
SIGNIFICANT CHANGES IN THE STATE OF AFFAIRS
On 10 July 2019, the Company announced it signed a binding heads of agreement to acquire 100% of
Vulcan Energy Resources, owner of the Vulcan Lithium Project.
The consideration for the Acquisition was:
i.
ii.
6,666,667 fully paid ordinary shares in Koppar (Shares) to be issued to the shareholders of Vulcan,
Dr Francis Wedin and Dr Horst Kreuter (Vendors) (Consideration Shares); and
13,200,000 Performance Shares to be issued to the Vendors, which will each convert into a Share
on a one for one basis on satisfaction the following milestones:
• 4,400,000 Shares on the Company announcing a positive scoping study in relation to the Vulcan
Lithium Project, confirming the Vulcan Lithium Project is commercially viable within 12 months
of completion of the Acquisition (Milestone 1);
• 4,400,000 Shares on the Company announcing a positive preliminary feasibility study in relation
to the Vulcan Lithium Project, confirming the Vulcan Lithium Project is commercially viable within
24 months of completion of the Acquisition (Milestone 2); and
• 4,400,000 Shares on the Company announcing that it has secured an off-take agreement
representing a minimum of 30% of production volume over a three year term, or a downstream
joint venture partner with a minimum $10,000,000 investment in relation to the Vulcan Lithium
Project within 36 months of completion of the Acquisition (Milestone 3), (together, the Deferred
Consideration).
17 | P a g e
Vulcan Energy Resources Limited – Annual Report 2020
Directors’ Report
The terms of the Performance Shares and Deferred Consideration were subject to ASX approval, which
was subsequently given.
As part of the Acquisition, the Company has paid the following by way of an introduction and facilitation
fee to parties involved in introducing the Acquisition to the Company:
(i)
(ii)
1,000,000 Shares to be issued on completion of the Acquisition; and
1,980,000 Shares to be issued as follows:
(A) 660,000 Shares to be issued on satisfaction of Milestone 1;
(B) 660,000 Shares to be issued on satisfaction of Milestone 2; and
(C) 660,000 Shares to be issued on satisfaction of Milestone 3.
On 4 September 2019, shareholders approved the following resolutions at the Koppar General Meeting:
•
Issue of 6,666,667 fully paid ordinary shares to the Vendors as consideration for the Vulcan Energy
Acquisition;
Issue of 13,200,000 Performance Shares to the Vendors as consideration for the Vulcan Energy
Acquisition;
•
• Mr Gavin Rezos was appointed as the Non-Executive Chairman of the Company;
•
Issue of 1,000,000 fully paid ordinary shares to Gavin Rezos at an issue price of $0.15 per share for
a total cash consideration paid of $150,000;
Issue of 1,000,000 fully paid ordinary shares to the Introducers upon completion of the Acquisition;
Issue of 750,000 fully paid ordinary shares to Gavin Rezos;
Issue of 3,000,000 Performance Rights to Gavin Rezos; and
Issue of 750,000 Performance Rights to Viaticus Capital Pty Ltd.
•
•
•
•
On 4 September 2019, the Company successfully completed its Acquisition of the Vulcan Lithium Project
in the Upper Rhine Valley of Germany, on the terms set out in its Announcement dated 10 July 2019.
Following completion of the transaction, Mr Gavin Rezos joined the Board as Chairman. Dr Francis
Wedin, founder and major shareholder of Vulcan Energy Resources joined the Board of Koppar as
Managing Director. The name of the Company was changed to Vulcan Energy Resources Ltd.
In parallel with the Acquisition, the Company raised A$1.1 million at $0.15 per share (“Placement”).
The proceeds of the Placement were used to fund due diligence and initial work at the Vulcan Lithium
Project. The Company issued 2,820,000 fully paid ordinary shares on 10 July 2019 and 3,513,334 on 19
July 2019 as part of the Placement.
In June 2020 the Company raised A$4.8 million at $0.40 per share to sophisticated and ESG investors.
The Company issued 12,000,000 fully paid ordinary shares on 30 June 2020. Funds will be used to
develop the Vulcan Zero Carbon Lithium project including PFS work.
MATTERS SUBSEQUENT TO THE REPORTING PERIOD
On 8 July 2020, the Company announced it had signed an Investment agreement with EU-backed EIT
InnoEnergy for staged cash investments into Vulcan, with initial tranche valued at A$0.51/share,
equivalent to the 15-day VWAP and at an 8.5% premium to 30-day VWAP, subject to shareholder
approval.
18 | P a g e
Vulcan Energy Resources Limited – Annual Report 2020
Directors’ Report
EIT InnoEnergy will provide the following staged payments to Vulcan Energie Ressourcen GmbH, the
Company’s 100%-owned German subsidiary (Subsidiary):
(a) an initial payment of €150,000 (Tranche 1, equivalent to $245,534 at current exchange rates).
(b) further payment of €50,000 after approval by EIT InnoEnergy of the financial and
performance reporting related to expenditure of Tranche 1 funding on approved work
packages Tranche 2).
(c) a final settlement of €50,000 of approved funding after approval by EIT InnoEnergy of the
final financial and performance reporting for the expenditure of Tranche 1 and Tranche 2
funding
The Company has agreed to grant Warrants to EIT InnoEnergy on payment of each Tranche of funding,
in the following amounts:
(a) Tranche 1: 479,519 Warrants subject to shareholder approval (being the Australian dollar
amount of the Tranche 1 funding, divided by $0.512, which was the volume weighted average
price (VWAP) for Shares over the last 15 days on which Shares were traded immediately prior to
execution of the funding agreements; and
(b) Tranches 2 and 3: the number equal to the Australian dollar amount of the relevant Tranche
of funding, divided by the VWAP for Shares over the last 15 days on which Shares were traded
immediately prior to EIT InnoEnergy paying the relevant Tranche of the funding.
Shareholder approval for Tranche 1 warrants were received on 10 September 2020. and 479,519
warrants were issued on 16 September 2020. The Warrants will convert into Shares on a one for one
basis on exercise.
On 31 July 2020 the Company appointed London-based Natural Resources Global Capital Partners
Limited (“NRG”) to provide strategic and financial advice in connection with the Vulcan’s Zero Carbon
Lithium™ Project. NRG will assist Vulcan with financial advice related to potential future transactions
surrounding funding for its Definitive Feasibility Study (“DFS”) and first commercial lithium hydroxide
production plant.
On 3 August 2020 the Company announced that Lithium chloride has been successfully produced from
Upper Rhine Valley geothermal brine during a series of successful benchscale Direct Lithium
Extraction (DLE) tests commissioned by Vulcan. Two different, pre-selected DLE adsorbents were
tested and in both cases the lithium recovery rate exceeded 90% on first pass. The tested DLE
adsorbents are of a type already used commercially on lithium brines worldwide, which reduces
development risk, in line with Vulcan’s strategy of utilising established technologies.
On 1 September 2020 the Company announced that Dr. Katharina Gerber has accepted an executive role
as Project Manager with the Company and relocated with her family from California back to Germany
to focus on developing the Zero Carbon Lithium™ Project full time.
On 31 August Vulcan announced the grant of its Taro License in the Vulcan Zero Carbon Lithium™ Project
area in the Upper Rhine Valley, and maiden Taro Licence Inferred Resource estimate. In conjunction
with this, Vulcan has re-totalled the collective Mineral Resource estimations for the Upper Rhine Valley
Project (URVP) area within the Zero Carbon Lithium™ Project.
The Taro license area has been granted to Global Geothermal Holding UG (GGH), with which Vulcan has
agreement to earn a 51% interest by spending €500,000 within two years of the license grant (Initial
Expenditure). After the Initial Expenditure, a Joint Venture will be formed, with Vulcan owning 51% and
GGH 49%. Vulcan will then spend a further €500,000 to earn a further 29% (Second Earn-In Expenditure)
with two years, to take its JV interest to 80%. Once VER has spent the minimum amount and has taken
its share to 80%, GGH can elect to co-fund the project pro rata, or be diluted by an industry-standard
formula whilst Vulcan continues to develop the project. Should GGH be diluted below 5%, its share will
be converted to a non-diluting 2% net royalty.
19 | P a g e
Directors’ Report
On 10 September 2020 the Company held a General Meeting and approved the following resolutions:-
Vulcan Energy Resources Limited – Annual Report 2020
Resolution 1 Ratification of Issue of Placement Shares issued under Listing Rule 7.1
Resolution 2 – Ratification of Issue of Placement Shares issued under Listing 7.1A
Resolution 3 – Issue of Broker Options to Merchant Group
Resolution 4 – Issue of Milestone 1 Deferred Introducer Shares
Resolution 5 – Issue of Tranche 1 Warrants to EIT InnoEnergy
Resolution 6 – Issue of Performance Rights to Mr Gavin Rezos
Resolution 7 – Issue of Performance Rights to Dr Horst Kreuter
The grant of Performance Rights to Mr Rezos and Mr Kreuter comprised of:-
Class M
Performance
Rights
1,500,000 to Dr Kreuter
(or his nominee)
Class N
Performance
Rights
1,500,000 to Dr Kreuter
(or his nominee)
Vesting on issue, and converting to Shares on a one
for one basis on the Company announcing, on or
before 21 May 2021, a positive Pre-Feasibility Study
in relation to the Company’s Zero Carbon Lithium™
Project confirming it is commercially viable.
Vesting on issue, and converting to Shares on a one
for one basis on the Company announcing, on or
before 21 May 2022, that it has secured either an off-
take agreement representing a minimum of 30% of
production volume over a three year term, or a
downstream
joint venture
lithium chemicals
partner with a minimum of $10,000,000 investment
in relation to the Project.
Class J
Performance
Rights
1,500,000 to Dr Kreuter
(or his nominee)
1,000,000 to Mr Rezos
Vesting on issue, and converting to Shares on a one
for one basis once both of the following have been
satisfied:
•
•
the Company announcing, within 36 months
from the date of issue, a positive Definitive
Feasibility Study in relation to the Project
confirming it is commercially viable; and
the VWAP for Shares as traded on ASX over 20
consecutive trading days is equal to or greater
than 225% of the VWAP for Shares for the last
5 trading days up to but not including the date
of the Meeting (the Reference Price).
Class K
Performance
Rights
1,000,000 to Mr Rezos
(or his nominee)
Vesting on issue, and converting to Shares on a one
for one basis once both of the following have been
satisfied:
•
•
the Company announcing, within 36 months
from the date of issue, a positive Pre-
Feasibility Study in relation to the Company’s
Zero Carbon Lithium™ Project confirming it is
commercially viable; and
the VWAP for Shares as traded on ASX over 20
consecutive trading days is equal to or greater
than 150% of the Reference Price.
20 | P a g e
Directors’ Report
Class L
Performance
Rights
1,000,000 to Mr Rezos
(or his nominee)
Vulcan Energy Resources Limited – Annual Report 2020
Once both of the following have been satisfied:
•
•
the Company announcing, within 36 months
from the date of issue, that it has secured
either an off-take agreement representing a
minimum of 30% of production volume over a
three year term, or a downstream lithium
joint venture partner with a
chemicals
minimum of $10,000,000
in
relation to the Project; and
investment
the VWAP for Shares as traded on ASX over 20
consecutive trading days is equal to or greater
than 200% of the Reference Price.
On 16 September 2020 the Company issued the securities approved at the 10 September General Meeting
along with 1,250,000 performance rights to senior management personnel (refer ASX announcement 16
September 2020 for further details).
LIKELY DEVELOPMENTS AND EXPECTED RESULTS
Over the next 12 months, the Group plans to rapidly advance the Vulcan Zero Carbon Lithium Project™
to completion of a Pre-Feasibility Study, and commence a Definitive Feasibility Study.
The Group will seek to develop value from exploration across its tenement projects in Norway.
DIRECTORS’ MEETINGS
The number of Directors’ meetings held during the financial year and the number of meetings attended
by each Director during the time the Director held office are:
Director
Mr Gavin Rezos
Dr Francis Wedin
Dr Horst Kreuter
Ms Ranya Alkadamani
Drs Katharina Gerber
Mr Patrick Burke
Mr William Oliver
Ms Rebecca Morgan
Number
Eligible to
Attend
3
3
2
0
0
1
1
0
Number
Attended
3
3
2
0
0
1
1
0
In addition to the scheduled Board meetings, Directors regularly communicate by telephone, email or
other electronic means, and where necessary, circular resolutions are executed to effect decisions.
Due to the size and scale of the Company, there is no Remuneration and Nomination Committee or Audit
Committee at present. Matters typically dealt with by these Committees are, for the time being, managed
by the Board. For details of the function of the Board, refer to the Corporate Governance Statement.
21 | P a g e
Vulcan Energy Resources Limited – Annual Report 2020
Directors’ Report
Remuneration Report (AUDITED)
This remuneration report for the year ended 30 June 2020 outlines the remuneration arrangements of
the Group in accordance with the requirements of the Corporations Act 2001 (“the Act”) and its
regulations. This information has been audited as required by section 308(3C) of the Act.
The Remuneration Report details the remuneration arrangements for Key Management Personnel
(“KMP”) who are defined as those persons having authority and responsibility for planning, directing
and controlling the major activities of the Group, directly or indirectly, including any Director (whether
executive or otherwise) of the Parent company.
a) Key Management Personnel Disclosed in this Report
Key Management Personnel of the Group during or since the end of the financial year were:
Before the acquisition of the Vulcan Zero Carbon Lithium Project™:
Ms Rebecca Morgan
Non-Executive Director (resigned 4 September 2019)
Non-Executive Director (resigned 19 November 2019)
Mr William Oliver
Mr Patrick Burke Non-Executive Director (resigned 31 December 2019)
After the acquisition of the Vulcan Zero Carbon Lithium Project™:
Mr Gavin Rezos
Dr Francis Wedin
Dr Horst Kreuter
Ms Ranya Alkadamani
Ms Katharina Gerber
Mr Robert Ierace
Non-Executive Chairman (appointed 4 September 2019)
Managing Director (appointed 4 September 2019)
Executive Director (appointed 20 December 2019)
Non-Executive Director (appointed 29 April 2020)
Non-Executive Director (appointed 11 May 2020, resigned 1
September 2020)
CFO & Company Secretary (appointed 1 April 2020)
On 4 September 2019, Dr Francis Wedin was appointed as Managing Director and Mr Gavin Rezos was
appointed as Non-Executive Chairman. Ms Rebecca Morgan resigned from her position as Non-Executive
Director on the same date.
Mr William Oliver resigned on 19 November 2019 and Mr Patrick Burke resigned on 31 December 2019.
There have been no other changes after the reporting date and up to the date that the financial report
was authorised for issue.
The Remuneration Report is set out under the following main headings:
A
B
C
D
E
F
G
H
I
J
K
Remuneration Philosophy
Remuneration Governance, Structure and Approvals
Remuneration and Performance
Details of Remuneration
Contractual Arrangements
Share-based Compensation
Equity Instruments Issued on Exercise of Remuneration Options
Voting and comments made at the Company’s 2018 Annual General Meeting
Loans with KMP
Other Transactions with KMP
Additional Information
22 | P a g e
Vulcan Energy Resources Limited – Annual Report 2020
Directors’ Report
A Remuneration Philosophy
KMP have authority and responsibility for planning, directing and controlling the activities of the Group.
KMP of the Group comprise of the Board of Directors and the Chief Financial Officer.
The Group’s broad remuneration policy is to ensure the remuneration package properly reflects the
person’s duties and responsibilities and that remuneration is competitive in attracting, retaining and
motivating people of the highest quality.
During the year the Company engaged MKT tax advisors for taxation advice relating to proposed Director
long term incentive awards.
B
Remuneration Governance, Structure and Approvals
Remuneration of Directors is currently set by the Board of Directors. The Board has not established a
separate Remuneration Committee at this point in the Group’s development. It is considered that the
size of the Board along with the level of activity of the Group renders this impractical. The Company did
engage a tax advisor for tax advice relating to proposed Director long term incentive awards. The Board,
acting as a Remuneration Committee, is primarily responsible for:
• The over-arching executive remuneration framework;
• Operation of the incentive plans which apply to executive directors and senior executives,
including key performance indicators and performance hurdles;
• Remuneration levels of executives; and
• Non-Executive Director fees.
Their objective is to ensure that remuneration policies and structures are fair and competitive and
aligned with the long-term interests of the Company.
❖ Non-Executive Remuneration Structure
The remuneration of Non-Executive Directors consists of Directors’ fees. The total aggregate fixed sum
per annum to be paid to Non-Executive Directors in accordance with the Company’s Constitution shall
be no more than A$300,000 and may be varied by ordinary resolution of the Shareholders in a General
Meeting.
Remuneration of Non-Executive Directors is based on fees approved by the Board of Directors and is set
at levels to reflect market conditions and encourage the continued services of the Directors. The chair’s
fees are determined independently to the fees of the Non-Executive Director’s based on comparative
roles in the external market. In accordance with the Company’s Constitution, the Directors may at any
time, subject to the Listing Rules, adopt any scheme or plan which they consider to be in the interests of
the Company and which is designed to provide superannuation benefits for both present and future Non-
Executive Directors, and they may from time to time vary this scheme or plan.
The remuneration of Non-Executive Directors is detailed in Table 1 and their contractual arrangements
are disclosed in “Section E – Contractual Arrangements”.
Remuneration may also include an invitation to participate in share-based incentive programmes in
accordance with Company policy.
23 | P a g e
Vulcan Energy Resources Limited – Annual Report 2020
Directors’ Report
The nature and amount of remuneration is collectively considered by the Board of Directors with
reference to relevant employment conditions and fees commensurate to a company of similar size and
level of activity, with the overall objective of ensuring maximum stakeholder benefit from the retention
of high-performing Directors.
❖ Executive Remuneration Structure
The nature and amount of remuneration of executives are assessed on a periodic basis with the overall
objective of ensuring maximum stakeholder benefit from the retention of high-performance Directors.
The main objectives sought when reviewing executive remuneration is that the Company has:
• Coherent remuneration policies and practices to attract and retain Executives;
• Executives who will create value for shareholders;
• Competitive remuneration offered benchmarked against the external market; and
• Fair and responsible rewards to Executives having regard to the performance of the Group, the
performance of the Executives and the general pay environment.
Refer below for details of Executive Directors’ remuneration.
C
Remuneration and Performance
The following table shows the gross revenue, losses, earnings per share (“EPS”) and share price of the
Group as at 30 June 2020 and 30 June 2019.
Revenue ($)
Net loss after tax ($)
EPS (cents per share)
Share price ($)
30-Jun-20
30-Jun-19
95,342
(3,553,359)
(7.37)
0.565
56,055
(836,664)
(2.64)
0.175
Relationship between Remuneration and Company Performance
Given the current phase of the Company’s development, the Board does not consider earnings during
the current financial year when determining, and in relation to, the nature and amount of remuneration
of KMP.
The pay and reward framework for key management personnel may consist of the following areas:
a) Fixed Remuneration – base salary
b) Variable Short-Term Incentives
c) Variable Long-Term Incentives
The combination of these would comprise the key management personnel’s total remuneration.
a)
Fixed Remuneration – Base Salary
The fixed remuneration for each KMP is influenced by the nature and responsibilities of each role
and knowledge, skills and experience required for each position. Fixed remuneration provides a
base level of remuneration which is market competitive and comprises a base salary inclusive of
statutory superannuation or equivalent in the place of employment. It is structured as a total
employment cost package.
24 | P a g e
Vulcan Energy Resources Limited – Annual Report 2020
Directors’ Report
Key management personnel are offered a competitive base salary that comprises the fixed component
of pay and rewards. External remuneration consultants may provide analysis and advice to ensure base
pay is set to reflect the market for a comparable role.
No external advice was taken during the financial year. Base salary for key management personnel is
reviewed annually to ensure the KMP’s pay is competitive with the market. The pay of key management
personnel is also reviewed on promotion. There is no guaranteed pay increase included in any key
management personnel’s contract.
b)
Variable Remuneration – Short -Term Incentives (STI)
Discretionary cash bonuses may be paid to KMP annually, subject to the requisite Board and
shareholder approvals where applicable. No bonus payments were made during the financial year.
For the 2021 Financial year, KMP’s have been set milestone based KPI’s which, if achieved, will
lead to cash bonus payments.
c)
Variable Remuneration – Long-Term Incentives (LTI)
Options
There have been no options issued to employees at the date of this financial report.
Performance Rights Plan
The Performance Rights Plan (“Plan”) was adopted by the Group at the 30 November 2018 Annual
General Meeting (“AGM”).
The current Plan provides the Board with the discretion to grant Performance Rights to eligible
participants which will vest subject to the achievement of performance hurdles as determined by
the Board from time to time.
The objective of the Plan is to attract, motivate and retain KMPs and it is considered by the Group
that the Plan and the future issue of Performance Rights under the Plan will provide selected
participants with the opportunity to participate in the future growth of the Group. The Plan will
enable the Group to make grants to Eligible Participants so that long-term incentives form a key
component of their total annual remuneration.
The Board believes that grants under the Plan will serve a number of purposes including:
•
•
to act as a key retention tool; and
to focus attention on future shareholder value generation.
Under the Plan, eligible Participants will be granted Performance Rights. Vesting of any of these
Performance Rights will be subject to the achievement of various KPIs which can be varied each
year and aligned to the individual’s performance.
Each Performance Right represents a right to be issued one share at a future point in time, subject
to the satisfaction of any vesting conditions. No exercise price is payable. The quantum of the
Performance Rights to be granted will be determined with reference to market practice and will
be subject to approval by the Board.
Performance will be assessed at the end of the performance period.
Any grants under the Plan will be subject to the achievement of KPIs. Appropriate KPIs may be
formulated for each Eligible Participant to participate in the Plan based on their role and responsibilities
in the Group.
25 | P a g e
Vulcan Energy Resources Limited – Annual Report 2020
Directors’ Report
Performance Rights will lapse if the participant leaves the Group prior to all the vesting conditions being
fulfilled although the Board has the ability, at its sole discretion, to vest some or all the Rights if “good
leaver” exemptions apply to the ceasing of employment. Persons who are terminated for “bad leaver”
reasons automatically lose their entitlement.
D Details of Remuneration
Details of the nature and amount of each major element of the remuneration of each KMP of the Group
during the financial year are:
Table 1 – Remuneration of KMP of the Group for the year ended 30 June 2020 is set out below:
Short-term Employee Benefits
Post-
Employment
Non-
monetary
benefits
$
Other Superannuat
ion
$
$
Total
Share
Based
Payments
Shares &
Rights
$
$
30 June 2020
Directors
Mr Gavin Rezos
Dr Francis Wedin
Dr Horst Kreuter
Ms Ranya Alkadamani
Dr Katharina Gerber
Mr Patrick Burke
Mr William Oliver
Ms Rebecca Morgan
Other KMP
Mr Robert Ierace
Total
Salary &
fees
$
70,125
185,625
102,357
4,566
4,194
45,000
24,000
10,667
25,000
471,534
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
17,634
-
434
-
252,372
-
-
-
-
-
-
-
72,837
56,284
-
322,497
203,259
102,357
5,000
4,194
117,837
80,284
10,667
2,375
3,123
30,498
20,443
384,616
876,593
Details of the remuneration of Directors of the Group for the year ended 30 June 2019 is set out below:
Short-term Employee
Benefits
Post-
Employment
Total
Share
Based
Payments
30 June 2019
Directors
Mr Patrick Burke
Mr William Oliver
Ms Rebecca Morgan
Total
Salary &
fees
$
120,000
60,000 (i)
79,998
259,998
Non-
monetary
benefits
$
-
-
-
-
Other Superannuat
ion
$
$
-
-
-
-
$
$
-
-
-
-
28,998
28,998
4,142 (ii)
62,138
148,998
88,998
84,140
322,136
26 | P a g e
Vulcan Energy Resources Limited – Annual Report 2020
Directors’ Report
(i)
An amount of $60,000 has been paid to Billandbry Consulting Pty Ltd relating to Mr Oliver’s
Director fees.
(ii) On 5 August 2019, Ms Morgan’s performance rights were cancelled.
The following table shows the relative proportions of remuneration that are linked to performance and
those that are fixed, based on the amounts disclosed as statutory remuneration expense in the tables
above:
Table 2 – Relative proportion of fixed vs variable remuneration expense
Fixed Remuneration
2020
2019
At Risk – STI (%)
2019
2020
At Risk – LTI (%)
2019
2020
Name
Directors
Mr Gavin Rezos
Dr Francis Wedin
Dr Horst Kreuter
Ms Ranya
Alkadamani
Dr Katharina
Gerber
Mr Patrick Burke
Mr William Oliver
Ms Rebecca Morgan
22%
100%
100%
100%
100%
38%
30%
100%
-
-
-
-
-
81%
95%
67%
Other KMP
Mr Robert Ierace
90%
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
78%
-
-
-
-
62%
70%
0%
-
-
-
-
-
19%
33%
5%
10%
-
Table 3 – Shareholdings of KMP (direct and indirect holdings)
30 June 2020
Directors
Mr Gavin Rezos
Dr Francis Wedin
Dr Horst Kreuter
Ms Ranya
Alkadamani
Dr Katharina Gerber
Mr Patrick Burke
Mr William Oliver
Ms Rebecca Morgan
Other KMP
Mr Robert Ierace
Balance at
1/07/2019
Granted as
Remuneration
On Exercise
of Rights
Net Change
– Other
Balance at
30/06/2020
-
-
-
-
750,000
-
-
-
1,250,000
-
-
-
1,680,207
11,163,334
553,333
-
3,680,207
11,163,334
553,333
-
-
-
-
250,000
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(250,000)
-
-
-
-
-
-
Total
250,000
750,000
1,250,000
13,146,874
15,396,874
27 | P a g e
Vulcan Energy Resources Limited – Annual Report 2020
Directors’ Report
Table 4 – Option holdings of KMP (direct and indirect holdings)
30 June 2020
Directors
Mr Gavin Rezos
Dr Francis Wedin
Dr Horst Kreuter
Ms Ranya
Alkadamani
Dr Katharina Gerber
Mr Patrick Burke
Mr William Oliver
Ms Rebecca Morgan
(i)
Other KMP
Mr Robert Ierace
Balance at
1/07/2019
Issued as
Remuneration
Net Change –
Other
Balance at
30/06/2020
-
-
-
-
-
-
-
62,500
-
-
-
-
-
-
-
-
-
100,000
162,500
-
-
-
-
-
(62,500)
100,000
162,500
-
-
-
-
-
-
-
Total
62,500
-
200,000
262,500
(i) Ms Morgan resigned on 4 September 2019
Table 5 – Performance Rights holdings of KMP (direct and indirect holdings)
30 June 2020
Directors
Mr Gavin Rezos
Dr Francis Wedin
Dr Horst Kreuter
Ms Ranya
Alkadamani
Dr Katharina Gerber
Mr Patrick Burke (i)
Mr William Oliver (ii)
Ms Rebecca Morgan
(iii)
Other KMP
Mr Robert Ierace
Balance at
1/07/2019
Issued as
Remuneration
Net Change –
Other
Balance at
30/06/2020
-
-
-
-
-
3,750,000
-
-
-
-
(1,250,000)
-
-
-
-
2,500,000
-
-
-
-
1,300,000
1,300,000
1,300,000
-
-
-
(1,300,000)
(1,300,000)
(1,300,000)
-
-
-
-
500,000
-
500,000
Total
(i) Mr Burke resigned on 31 December 2019
(ii) Mr Oliver resigned on 19 November 2019
(iii)Ms Morgan resigned on 4 September 2019
3,900,000
4,250,000
(5,150,000)
3,000,000
28 | P a g e
Vulcan Energy Resources Limited – Annual Report 2020
Directors’ Report
Table 6 – Performance Shares holdings of KMP (direct and indirect holdings)
30 June 2020
Directors
Mr Gavin Rezos
Dr Francis Wedin
Dr Horst Kreuter
Ms Ranya
Alkadamani
Dr Katharina Gerber
Mr Patrick Burke (i)
Mr William Oliver (ii)
Ms Rebecca Morgan
(iii)
Other KMP
Mr Robert Ierace
Balance at
1/07/2019
Issued as
acquisition
Net Change –
Other
Balance at
30/06/2020
-
-
-
-
-
-
-
-
-
-
12,540,000
660,000
-
-
-
(4,180,000)
(220,000)
-
-
-
8,360,000
440,000
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Total
13,200,000
(4,400,000)
8,800,000
E Contractual Arrangements
Gavin Rezos – Non-Executive Chairman
- Contract: Commenced on 4 September 2019.
- Director’s Fee: $85,000 per annum.
- Term: See Note 1 below for details pertaining to re-appointment and termination.
Francis Wedin – Managing Director
- Contract: Commenced on 4 September 2019.
- Director’s Fee: $225,000 per annum plus superannuation.
- With effect from September 2020, director’s fee increased to $290,000 per annum
plus superannuation.
- Term: See Note 1 below for details pertaining to re-appointment and termination.
Horst Kreuter – Executive Director
- Contract: Commenced on 20 December 2020.
- Director’s Fee: Euro 115,000 per annum.
- With effect from September 2020, director’s fee increased to Euro 150,000 per
annum.
- Term: See Note 1 below for details pertaining to re-appointment and termination.
Ranya Alkadamani – Non-Executive Director
- Contract: Commenced on 29 April 2020.
- Director’s Fee: $30,000 per annum.
- Term: See Note 1 below for details pertaining to re-appointment and termination.
29 | P a g e
Vulcan Energy Resources Limited – Annual Report 2020
Directors’ Report
Katharina Gerber – Non-Executive Director (resigned and appointed Project manager on
1 September 2020)
- Contract: Commenced on 11 May 2020.
- Director’s Fee: $30,000 per annum.
- Term: See Note 1 below for details pertaining to re-appointment and termination.
William Oliver – Non-Executive Director (resigned 19 November 2019)
- Contract: Commenced on 5 February 2018.
- Director’s Fee: $36,000 per annum.
- Geological Consultancy Services: $2,000 per month.
Patrick Burke – Non-Executive Director (resigned 31 December 2019, formerly
Chairman)
- Contract: Commenced on 5 February 2018.
- Director’s Fee: $120,000 per annum as Chairman (5 February 2018 – 4 September
2019)
- Director’s Fee: $75,000 per annum as Non-Executive Director (4 September 2019 – 31
December 2019)
Rebecca Morgan – Non-Executive Director (resigned 4 September 2019)
- Contract: Commenced on 5 February 2018.
- Director’s Fee: $36,000 per annum.
- Geological Consultancy Services: $2,000 per month.
Note 1: The term of each Director is open to the extent that they hold office subject to retirement by
rotation, as per the Company’s Constitution, at each AGM and are eligible for re-election as a Director at
the meeting. Appointment shall cease automatically in the event that the Director gives written notice to
the Board, or the Director is not re-elected as a Director by the shareholders of the Company. There are
no entitlements to termination or notice periods.
F
Share-based Compensation
The Company rewards Directors for their performance and aligns their remuneration with the creation
of shareholder wealth by issuing performance rights. Share-based compensation is at the discretion of
the Board and no individual has a contractual right to receive any guaranteed benefits.
Shares
Details of shares issued to directors and other key management personnel as part of compensation
during the current financial year are set below:
Name
Grant Date
Shares
Issue Price
$
Gavin Rezos
4/09/2019
750,000
$0.15
112,500
Options
There were no unlisted options provided to KMP during the current financial year.
Performance Rights
During the financial year, the Company issued 4,250,000 performance rights to Directors and other key
management personnel. The terms and conditions of each tranche of performance rights affecting
remuneration in the current or future reporting period are as follows:
30 | P a g e
Vulcan Energy Resources Limited – Annual Report 2020
Directors’ Report
Tranche
Grant Date Vesting date Expiry Date
Tranche 1(i) 4/9/2019
Tranche 2(i) 4/9/2019
4/9/2019
Tranche 3(i)
14/5/2020
Tranche 1
14/5/2020
Tranche 2
4/9/2019
4/9/2019
4/9/2019
18/5/2022
18/5/2023
4/9/2020
4/9/2021
4/9/2022
1/12/2023
1/12/2023
Value of
each Right
$0.15
$0.15
$0.15
$0.225
$0.225
Vested
1,250,000
-
-
-
-
(i) Mr Rezos rights vested on issue and will be converted to shares on a one for one basis upon meeting
performance hurdle. Tranche 1 rights converted to shares on 28 February 2020 upon meeting
performance hurdle.
The Performance Rights were issued for nil consideration and no consideration will be payable upon the
vesting of the Performance Rights. Rights granted under the Performance Rights Plan carry no dividend
or voting rights. Details of Performance Rights provided as part of remuneration to key management
personnel are shown below. Further information on the performance rights is set out in Note 16 to the
financial statements.
Name
Grant Date
Vesting
Date
Number of
Performance
Rights
Granted
Value of the
Performance
Rights at Grant
Date
Number of
Performance
Rights vested
Gavin Rezos
Tranche 1(i)
Tranche 2(i)
Tranche 3(i)
Robert Ierace
Tranche 1
Tranche 2
4/9/2019
4/9/2019
4/9/2019
4/9/2019
4/9/2019
4/9/2019
1,250,000
1,250,000
1,250,000
14/5/2020
14/5/2020
18/5/2022
18/5/2023
250,000
250,000
$187,500
$112,500
$75,000
$33,750
$22,500
1,250,000
-
-
-
-
(i) Mr Rezos rights vested on issue and will be converted to shares on a one for one basis upon meeting
performance hurdle. Tranche 1 rights converted to shares on 28 February 2020 upon meeting
performance hurdle.
The assessed fair value at grant date of Performance Rights granted to the individuals is allocated equally
over the period from grant date to vesting date, and the amount is included in the remuneration tables
above.
G Equity Instruments Issued on Exercise of Remuneration Options/Rights
No remuneration options were exercised during the financial year.
During the year, the company issued 2,050,000 shares upon exercise of 2,050,000 performance rights.
H Voting and Comments made at the Company’s 2019 Annual General Meeting (‘AGM’)
At the 2019 AGM, 93.45% of the votes received supported the adoption of the Remuneration Report for
the year ended 30 June 2019. The Company did not receive any specific feedback at the AGM or
throughout the year on its remuneration practices.
I Loans with KMP
31 | P a g e
Directors’ Report
There were no loans made to any KMP during the year ended 30 June 2020 (2019: Nil).
J Other Transactions with KMP
Vulcan Energy Resources Limited – Annual Report 2020
During the financial year 6,666,667 fully paid ordinary shares in the Company were issued to the
shareholders of Vulcan, Dr Francis Wedin and Dr Horst Kreuter (Vendors) (Consideration Shares) and;
13,200,000 Performance Shares to be issued to the Vendors, which will each convert into a Share on a
one for one basis on satisfaction the following milestones:
• 4,400,000 Shares on satisfaction of Milestone 1;
• 4,400,000 Shares on satisfaction of Milestone 2; and
• 4,400,000 Shares on satisfaction of Milestone3.
During the financial year, payments for corporate advisory services outside of Australia of $73,185
were made to Viaticus Capital, a related party of Mr Rezos. Viaticus Capital also received fees of
$18,000 for capital raising fees associated with a placement undertaken in June 2020. There was
$33,000 trade payable/accrual balance at 30 June 2020.
During the financial year, payments for engineering services of €77,035, (A$130,128) were made to
GeoThermal Engineering GmbH, a related party of Horst Krueter. Mr Kreuter was paid $43,474
consulting fees prior to becoming a Director of the Company. There was no trade payable balance at
30 June 2020.
K Additional Information
The earnings of the consolidated entity for the two years to 30 June 2020 are summarised below. The
Company was incorporated on 5 February 2018.
2020
$
95,342
(3,598,701)
(3,598,701)
(3,553,359)
0.565
(7.37)
2019
$
56,055
(892,719)
(892,719)
(836,664)
0.175
(2.64)
Revenue
EBITDA
EBIT
Loss after income tax
Share Price ($)
EPS (cents per share)
Diversity
During the 2020 financial year, the Company had three female Directors and four male Directors. As
at the date of this report the Company has three male Directors and one female Director. The Company
intends to appoint additional female Directors and employees should a vacancy arise, and
appropriately qualified and experienced individuals are available.
[End of Audited Remuneration Report]
32 | P a g e
Directors’ Report
INDEMNIFICATION AND INSURANCE OF OFFICERS AND AUDITORS
Vulcan Energy Resources Limited – Annual Report 2020
The Company has indemnified the Directors and Executives of the Company for costs incurred, in their
capacity as a Director or Executive, for which they may be held personally liable, except where there
is a lack of good faith.
During the financial year, the Company paid a premium in respect of a contract to insure the Directors
and Executives of the Company against a liability to the extent permitted by the Corporations Act 2001.
The contract of insurance prohibits disclosure of the nature of the liability and the amount of the
premium. The Company has not, during or since the end of the financial period, indemnified or agreed
to indemnify the auditor of the Company or any related entity against a liability incurred by the
auditor.
During the financial year, the Company has not paid a premium in respect of a contract to insure the
auditor of the Company or any related entity.
ENVIRONMENTAL REGULATIONS
The Directors have considered compliance with the National Greenhouse and Energy Reporting Act
2007 which requires entities to report annual greenhouse gas emissions and energy use. The Directors
have assessed that there are no current reporting requirements under the National Greenhouse and
Energy Reporting Act 2007.
PROCEEDINGS ON BEHALF OF THE COMPANY
No person has applied to the Court under section 237 of the Corporations Act 2001 for leave to bring
proceedings on behalf of the Company, or to intervene in any proceedings to which the Company is a
party, for the purposes of taking responsibility on behalf of the Company for all or part of these
proceedings.
OFFICERS OF THE COMPANY WHO ARE FORMER PARTNERS OF RSM AUSTRALIA PARTNERS
There are no officers of the Company who are former partners of RSM Australia Partners.
SHARE UNDER OPTION/PERFORMANCE RIGHTS/PERFORMANCE SHARES
At the date of this report there were the following unissued ordinary shares for which options,
performance rights and performance shares are outstanding:
Option
Listed Options
Unlisted Options
Unlisted
Warrants
Number
9,672,208
1,125,250
479,519
Expiry Date
20/01/2021
16/3/2022
16/9/2023
Exercise Price
$0.285
$0.80
The exercise price will be funding
amounts paid by EIT InnoEnergy
on issue of warrants
33 | P a g e
Vulcan Energy Resources Limited – Annual Report 2020
Directors’ Report
Performance
rights
Class E
Class F
Class G
Class H
Class I
Class J
Class K
Class L
Class M
Class N
Class P
Number
Expiry Date
Exercise Price
1,250,000
1,250,000
250,000
1,000,000
1,000,000
2,500,000
1,000,000
1,000,000
1,500,000
1,500,000
250,000
4/9/2021
4/9/2022
1/12/2023
1/12/2023
1/12/2023
16/9/2023
16/9/2023
16/9/2023
1/12/2023
1/12/2023
1/12/2023
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Performance
shares
Class B
Class C
Number
Expiry Date
Exercise Price
4,400,000
4,400,000
4/9/2021
4/9/2022
Nil
Nil
Option/performance rights and performance shares holders do not have any rights to participate in
any issues of shares or other interests of the company or any other entity.
SHARE ISSUED ON THE EXERCISE OF OPTIONS
There were 3,015,304 ordinary shares issued during the year ended 30 June 2020 and up to the date of
this report on the exercise of options.
AUDITOR’S INDEPENDENCE DECLARATION
The lead auditor’s independence declaration for the year ended 30 June 2020 as required under section
307C of the Corporations Act 2001 has been received and included within these financial statements.
AUDITOR
RSM Australia Partners continues in office in accordance with section 327 of the Corporations Act 2001.
NON-AUDIT SERVICES
The Company may decide to employ the auditor on assignments additional to their statutory audit
duties where the auditor’s expertise and experience with the Company and/or the Group are
important.
Details of the amounts paid or payable to the auditor for non-audit services provided during the period
by the auditor are outlined in Note 20 to the financial statements.
The Board of Directors has considered the position and is satisfied that the provision of the non-audit
services is compatible with the general standard of independence for auditors imposed by the
Corporations Act 2001. The Directors are satisfied that the provision of non-audit services by the
auditors, as set out below, did not compromise the auditor independent requirements of the
Corporations Act 2001 for the following reasons:
34 | P a g e
Directors’ Report
Vulcan Energy Resources Limited – Annual Report 2020
• all non-audit services have been reviewed by the Board of Directors to ensure they do not
impact the impartiality and objectivity of the auditor; and
• None of the services undermine the general principles relating to the auditor independence as
set out in APES 110 Code of Ethics for Professional Accountants.
This report is signed in accordance with a resolution of Board of Directors, pursuant to section
298(2)(a) of the Corporations Act 2001.
Gavin Rezos
Chairman
30 September 2020
35 | P a g e
AUDITOR’S INDEPENDENCE DECLARATION
As lead auditor for the audit of the financial report of Vulcan Energy Resources Limited for the year ended 30
June 2020, I declare that, to the best of my knowledge and belief, there have been no contraventions of:
(i)
(ii)
the auditor independence requirements of the Corporations Act 2001 in relation to the audit; and
any applicable code of professional conduct in relation to the audit.
RSM AUSTRALIA PARTNERS
Perth, WA
Dated: 30 September 2020
TUTU PHONG
Partner
Consolidated Statement of Profit or Loss and Other Comprehensive Income
Vulcan Energy Resources Limited – Annual Report 2020
For the Financial Year Ended 30 June 2020
Revenue from continuing operations
Other income
Expenses
Administrative expenses
Compliance and regulatory expenses
Consulting and legal fees
Employee benefit expenses
Investor relations
Introducer fee
Occupancy costs
Impairment expense
Share-based payments expense
Other expenses
Foreign currency (losses)/gain
Loss from continuing operations before income tax
Income tax expense
Loss from continuing operations after income tax
Note
2020
$
2019
$
4
95,342
56,055
5(a)
5(b)
10
16
6
(320,920)
(98,906)
(424,603)
(234,551)
(314,510)
(150,000)
(18,148)
(286,017)
(1,690,473)
(103,406)
(7,167)
(172,580)
(62,970)
(109,642)
(156,165)
-
-
(11,000)
(287,667)
(62,138)
(27,533)
(3,024)
(3,553,359)
-
(3,553,359)
(836,664)
-
(836,664)
Other comprehensive income
Other comprehensive income for the year, net of tax
(22,016)
(22,016)
-
-
Total comprehensive loss attributable to the
members of Vulcan Energy Resources Limited
(3,575,375)
(836,664)
Loss per share for the year attributable to the
members Vulcan Energy Resources Limited:
Basic loss per share (cents)
Diluted loss per share (cents)
7
7
(7.37)
(7.37)
(2.64)
(2.64)
The Consolidated Statement of Profit or Loss and Other Comprehensive Income should be
read in conjunction with the notes to the financial statements.
37 | P a g e
Consolidated Statement of Financial Position
As at 30 June 2020
Vulcan Energy Resources Limited – Annual Report 2020
Note
2020
$
2019
$
ASSETS
Current assets
Cash and cash equivalents
Trade and other receivables
Total current assets
Non-current assets
Exploration and evaluation expenditure
Intangible assets
Total non-current assets
8
9
10
6,421,557
116,071
6,537,628
3,348,996
35,063
3,384,059
2,556,980
13,353
2,570,333
526,001
-
526,001
Total assets
LIABILITIES
Current liabilities
Trade and other payables
Total current liabilities
Total liabilities
Net assets
EQUITY
Contributed equity
Reserves
Accumulated losses
Total equity
9,107,961
3,910,060
11
221,922
221,922
116,944
116,944
221,922
116,944
8,886,039
3,793,116
12
13
21
11,836,741
1,719,970
(4,670,672)
8,886,039
4,746,416
164,013
(1,117,313)
3,793,116
The Consolidated Statement of Financial Position should be
read in conjunction with the notes to the financial statements.
38 | P a g e
Consolidated Statement of Changes in Equity
For the Financial Year Ended 30 June 2020
Vulcan Energy Resources Limited – Annual Report 2020
Issued
Capital
Reserves
Accumulated
Losses
Total
$
$
$
$
At 1 July 2019
4,746,416
164,013
(1,117,313)
3,793,116
Loss for the year
Other comprehensive loss for the
year
Total comprehensive loss for
the year after tax
Transactions with owners in their
capacity as owners:
Issue of share capital
Share issue costs
Share-based payments
-
-
-
-
(3,553,359)
(3,553,359)
(22,016)
-
(22,016)
(22,016)
(3,553,359)
(3,575,375)
7,438,810
(348,485)
-
-
-
1,577,973
-
-
-
7,438,810
(348,485)
1,577,973
Balance at 30 June 2020
11,836,741
1,719,970
(4,670,672)
8,886,039
Issued
Capital
Reserves
Accumulated
Losses
Total
$
$
$
$
At 1 July 2018
4,746,416
Loss for the year
Total comprehensive loss for
the year after tax
Transactions with owners in their
capacity as owners:
Issue of listed options
Option issue costs
Share-based payments
-
-
-
-
-
-
-
-
(280,649)
4,465,767
(836,664)
(836,664)
(836,664)
(836,664)
126,875
(25,000)
62,138
-
-
-
126,875
(25,000)
62,138
Balance at 30 June 2019
4,746,416
164,013
(1,117,313)
3,793,116
The Consolidated Statement of Changes in Equity should be read
in conjunction with the notes to the financial statements.
39 | P a g e
Consolidated Statement of Cash Flows
For the Financial Year Ended 30 June 2020
Cash flows from operating activities
Payments to suppliers and employees
Interest received
Other income
Net cash used in operating activities
Cash flows from investing activities
Payments for exploration and evaluation costs
Net cash acquired from acquisition of subsidiary
Loans to other entities
Payments for software
Net cash used in investing activities
Cash flows from financing activities
Proceeds from issue of listed options
Option issue costs
Proceeds from issued shares
Share issue costs
Net cash from financing activities
Net increase/(decrease) in cash and cash
equivalents
Vulcan Energy Resources Limited – Annual Report 2020
Note
2020
$
2019
$
8(a)
14
(1,427,391)
45,342
50,000
(1,332,049)
(1,205,783)
404
-
(13,353)
(1,218,732)
(417,562)
56,055
-
(361,507)
(438,127)
-
(1,154)
-
(439,281)
-
-
126,875
(25,000)
5,976,310
-
(330,545) -
5,645,765
101,875
3,094,984
(698,913)
Cash and cash equivalents at the beginning of the
year
Effect of exchange rate fluctuations on cash held
Cash and cash equivalents at the end of the year
3,348,996
4,047,909
8
(22,423)
6,421,557
-
3,348,996
The Consolidated Statement of Cash Flows should be
read in conjunction with the notes to the financial statements.
40 | P a g e
Notes to the Consolidated Financial Statements
NOTE 1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(a) Reporting Entity
Vulcan Energy Resources Limited – Annual Report 2020
Vulcan Energy Resources Limited (referred to as “Vulcan” or the “Company”) is a company domiciled
in Australia. The address of the Company’s registered office and principal place of business is disclosed
in the Corporate Directory of the Annual Report. The consolidated financial statements of the Company
as at and for the year ended 30 June 2020 comprise the Company and its subsidiaries (together referred
to as the “Consolidated Entity” or the “Group”).
(b) Basis of Preparation
Statement of compliance
The consolidated financial statements are general purpose financial statements which have been
prepared in accordance with Australian Accounting Standards and Interpretations issued 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”). Vulcan Energy Resources Limited is a for-profit
entity for the purpose of preparing the financial statements.
The annual report was authorised for issue by the Board of Directors on 30 September 2020.
Basis of measurement
The consolidated financial statements have been prepared on a going concern basis in accordance
with the historical cost convention, unless otherwise stated.
Parent entity information
In accordance with the Corporations Act 2001, these financial statements present the results of the
consolidated entity only. Supplementary information about the parent entity is disclosed in Note 23.
New, revised or amended standards and interpretations adopted by the Group
The Group has adopted all of the new, revised or amending Accounting Standards and Interpretations
issued by the Australian Accounting Standards Board (“AASB”) that are mandatory for the current
reporting period.
The following Accounting Standards and Interpretations are most relevant to the consolidated entity:
AASB 16 Leases
The consolidated entity has adopted AASB 16 from 1 July 2019. The standard replaces AASB 117 'Leases'
and for lessees eliminates the classifications of operating leases and finance leases. Except for short-
term leases and leases of low-value assets, right-of-use assets and corresponding lease liabilities are
recognised in the statement of financial position. Straight-line operating lease expense recognition is
replaced with a depreciation charge for the right-of-use assets (included in operating costs) and an
interest expense on the recognised lease liabilities (included in finance costs). In the earlier periods of
the lease, the expenses associated with the lease under AASB 16 will be higher when compared to lease
expenses under AASB 117. However, EBITDA (Earnings Before Interest, Tax, Depreciation and
Amortisation) results improve as the operating expense is now replaced by interest expense and
depreciation in profit or loss. For classification within the statement of cash flows, the interest portion
is disclosed in operating activities and the principal portion of the lease payments are separately
disclosed in financing activities. For lessor accounting, the standard does not substantially change how
a lessor accounts for leases.
41 | P a g e
Notes to the Consolidated Financial Statements
NOTE 1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT.)
Vulcan Energy Resources Limited – Annual Report 2020
Impact of adoption
There is no impact on the Group for the year ended 30 June 2020 and the prior year financial
statements did not have to be restated as a result.
Revenue recognition
The consolidated entity recognises revenue as follows:
Revenue from contracts with customers
Revenue is recognised at an amount that reflects the consideration to which the consolidated entity is
expected to be entitled in exchange for transferring goods or services to a customer. For each contract
with a customer, the consolidated entity: identifies the contract with a customer; identifies the
performance obligations in the contract; determines the transaction price which takes into account
estimates of variable consideration and the time value of money; allocates the transaction price to the
separate performance obligations on the basis of the relative stand-alone selling price of each distinct
good or service to be delivered; and recognises revenue when or as each performance obligation is
satisfied in a manner that depicts the transfer to the customer of the goods or services promised.
Interest
Interest revenue is recognised as interest accrues using the effective interest method. This is a method
of calculating the amortised cost of a financial asset and allocating the interest income over the
relevant period using the effective interest rate, which is the rate that exactly discounts estimated
future cash receipts through the expected life of the financial asset to the net carrying amount of the
financial asset.
Other revenue
Other revenue is recognised when it is received or when the right to receive payment is established.
Current and non-current classification
Assets and liabilities are presented in the statement of financial position based on current and non-
current classification.
An asset is classified as current when: it is either expected to be realised or intended to be sold or
consumed in the consolidated entity's normal operating cycle; it is held primarily for the purpose
of trading; it is expected to be realised within 12 months after the reporting period; or the asset is
cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at
least 12 months after the reporting period. All other assets are classified as non-current.
A liability is classified as current when: it is either expected to be settled in the consolidated entity's
normal operating cycle; it is held primarily for the purpose of trading; it is due to be settled within
12 months after the reporting period; or there is no unconditional right to defer the settlement of
the liability for at least 12 months after the reporting period. All other liabilities are classified as
non-current.
Equity Instruments
Where the Group’s management has elected to present fair value gains and losses on equity
investments in OCI, there is no subsequent reclassification of fair value gains and losses to profit or
loss following the derecognition of the investment. Dividends from such investments continue to be
recognised in the profit or loss as other income when the Group’s right to receive payments is
established.
42 | P a g e
Notes to the Consolidated Financial Statements
NOTE 1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT.)
Impairment
Vulcan Energy Resources Limited – Annual Report 2020
From 1 July 2019, the Group assesses on a forward-looking basis the expected credit losses (ECLs)
associated with its debt instruments carried at amortised cost and FVOCI. ECLs are based on the
difference between the contractual cash flows due in accordance with the contract and all the cash
flows that the Group expects to receive. The shortfall is then discounted at an approximation to the
asset’s original effective interest rate.
The Group assesses at each balance date whether there is objective evidence that a financial asset or
group of financial assets is impaired. For trade and other receivables, the Group applies the simplified
approach permitted by AASB 9, which requires expected lifetime losses to be recognised from initial
recognition of the receivables. The expected credit losses on these financial assets are estimated using
a provision matrix based on the Group’s historical credit loss experience.
New standards and interpretations not yet mandatory or early adopted
The Australian Accounting Standards and Interpretations that have recently been issued or amended
but are not yet mandatory, have not been early adopted by the Group for the annual reporting period
ended 30 June 2020. The Group intends to adopt these standards and interpretations, if applicable,
when they become effective.
Conceptual Framework for Financial Reporting (Conceptual Framework)
The revised Conceptual Framework is applicable to annual reporting periods beginning on or after 1
January 2020 and early adoption is permitted. The Conceptual Framework contains new definition
and recognition criteria as well as new guidance on measurement that affects several Accounting
Standards. Where the consolidated entity has relied on the existing framework in determining its
accounting policies for transactions, events or conditions that are not otherwise dealt with under the
Australian Accounting Standards, the consolidated entity may need to review such policies under the
revised framework. At this time, the application of the Conceptual Framework is not expected to have
a material impact on the consolidated entity's financial statements.
Significant Judgements and Estimates
The preparation of financial statements requires the use of certain critical accounting estimates. It
also requires management to exercise its judgement in the process of applying the consolidated
entity’s accounting policies. The areas involving a higher degree of judgement or complexity, or areas
where assumptions and estimates are significant to the financial statements are disclosed in Note 2.
(c)
Comparatives
The comparative period is 1 July 2018 to 30 June 2019.
(d) Principles of Consolidation
Subsidiaries
The consolidated financial statements incorporate the assets and liabilities of all subsidiaries of Vulcan
Energy Resources Limited (‘Company’ or ‘parent entity’) as at 30 June 2020 and the results of all
subsidiaries for the year then ended.
43 | P a g e
Notes to the Consolidated Financial Statements
NOTE 1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT.)
Vulcan Energy Resources Limited – Annual Report 2020
Subsidiaries are all entities (including special purpose entities) over which the consolidated entity has
the power to govern the financial and operating policies, generally accompanying a shareholding of
more than one-half of the voting rights. The existence and effect of potential voting rights that are
currently exercisable or convertible are considered when assessing whether the consolidated entity
controls another entity.
Subsidiaries are fully consolidated from the date on which control is transferred to the consolidated
entity. They are de-consolidated from the date that control ceases.
Intercompany transactions, balances and unrealised gains on transactions between consolidated
entity companies are eliminated. Unrealised losses are also eliminated unless the transaction provides
evidence of the impairment of the asset transferred. Accounting policies of subsidiaries have been
changed where necessary to ensure consistency with the policies adopted by the consolidated entity.
The acquisition method of accounting is used to account for business combinations by the consolidated
entity. A change in ownership interest, without the loss of control, is accounted for as an equity
transaction, where the difference between the consideration transferred and the book value of the
share of the non-controlling interest acquired is recognised directly in equity attributable to the
parent.
Non-controlling interests in the results and equity of subsidiaries are shown separately in the
consolidated statement of profit or loss and other comprehensive income, statement of changes in
equity and statement of financial position respectively.
(e)
Segment Reporting
Operating segments are reported in a manner consistent with the internal reporting provided to the
chief operating decision maker. The chief operating decision maker, who is responsible for allocating
resources and assessing performance of the operating segments, has been identified as the Board.
Management has determined that based on the report reviewed by the Board and used to make
strategic decisions, that the consolidated entity has one reportable segment.
(f)
Foreign Currency Translation
Functional and presentation currency
Items included in the financial statements of each of the consolidated entity’s entities are measured
using the currency of the primary economic environment in which the entity operates (“functional
currency”). The consolidated financial statements are presented in Australian dollars, which is Vulcan
Energy Resources Limited’s functional and presentation currency.
Transactions and balances
Foreign currency transactions are translated into the functional currency using the exchange rates
prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from the
settlement of such transactions and from the translation at period end exchange rates of monetary
assets and liabilities denominated in foreign currencies are recognised in profit or loss.
(g) Asset Acquisition not constituting a Business
When an asset acquisition does not constitute a business combination, the assets and liabilities are
assigned a carrying amount based on their relative fair values in an asset purchase transaction and
no deferred tax will arise in relation to the acquired assets and assumed liabilities as the initial
44 | P a g e
Notes to the Consolidated Financial Statements
NOTE 1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT.)
Vulcan Energy Resources Limited – Annual Report 2020
recognition exemption for deferred tax under AASB 112 applies. No goodwill will arise on the
acquisition and transaction costs of the acquisition will be included in the capitalised cost of the asset.
(h) Dividends
Dividends are recognised when declared during the financial period and no longer at the discretion
of the Company.
NOTE 2
CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS AND ASSUMPTIONS
The preparation of the financial statements requires management to make judgements, estimates and
assumptions that affect the reported amounts in the financial statements. Management continually
evaluates its judgements and estimates in relation to assets, liabilities, contingent liabilities, revenue
and expenses.
Management bases its judgements, estimates and assumptions on historical experience and on other
various factors, including expectations of future events, management believes to be reasonable under
the circumstances. The resulting accounting judgements and estimates will seldom equal the related
actual results. The judgements, estimates and assumptions in these financial statements that have a
significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within
the next financial period are disclosed below.
Coronavirus (COVID-19) pandemic
Judgement has been exercised in considering the impacts that the Coronavirus (COVID-19) pandemic
has had, or may have, on the consolidated entity based on known information. This consideration
extends to the nature of the products and services offered, customers, supply chain, staffing and
geographic regions in which the consolidated entity operates. Other than as addressed in specific
notes, there does not currently appear to be either any significant impact upon the financial
statements or any significant uncertainties with respect to events or conditions which may impact the
consolidated entity unfavourably as at the reporting date or subsequently as a result of the
Coronavirus (COVID-19) pandemic.
Exploration and evaluation expenditure
Exploration and evaluation costs have been capitalised on the basis that activities in the area have not
yet reached a stage that permits reasonable assessment of the existence of economically recoverable
reserves. Key judgements are applied in considering costs to be capitalised which includes
determining expenditures directly related to these activities and allocating overheads between those
that are expensed and capitalised.
Share based payments
The Group measures the cost of equity settled transactions with Directors, employees and consultants,
where applicable, by reference to the fair value of equity instruments at the date at which they are
granted. The fair value is determined using an appropriate valuation model taking into account the
terms and conditions upon which the instruments were granted. The accounting estimates and
assumptions relating to equity-settled shared-based payments would have no impact on the carrying
amounts of assets and liabilities within the next annual reporting period but may impact profit or loss
and equity.
45 | P a g e
Notes to the Consolidated Financial Statements
NOTE 3
SEGMENT INFORMATION
Vulcan Energy Resources Limited – Annual Report 2020
Operating segments are reported in a manner consistent with the internal reporting provided to the
chief operating decision makers. The chief operating decision makers, who are responsible for
allocating resources and assessing performance of the operating segments, have been identified as the
Board of Directors.
Following the acquisition of a 100% interest in the Vulcan Lithium Project in the Upper Rhine Valley
of Germany on 4 September 2019, it was determined that the Group operates in three operating
segments being, energy metals exploration in Germany, copper and zinc mineral exploration in
Norway and resources allocated to administration. This is the basis in which internal reports are
provided to the Directors for assessing performance and determining the allocation of resources
within the Group.
(i) Segment performance
Exploration Exploration
30-June-20
Revenue
Interest income
Other income
Total segment revenue
Germany
Norway Administration
Total
$
-
-
$
-
-
$
$
45,342
50,000
95,342
45,342
50,000
95,342
Reconciliation of segment results to net loss before tax
Amounts not included in segment results but reviewed by the
Board
- Administration, consulting and other expenses
Net loss before tax from continuing operations
(3,648,701)
(3,553,359)
(ii) Segment assets
Exploration Exploration
30-June-20
Total segment asset
Germany
Norway Administration
$
$
$
Total
$
2,279,731
290,602
6,537,628
9,107,961
(ii) Segment liabilities
Exploration Exploration
30-June-20
Total segment liabilities
Germany
$
(30,984)
Norway Administration
$
$
Total
$
(668)
(190,270)
(221,922)
NOTE 4
REVENUE
Other income
Interest income
Cash boost
2020
$
2019
$
45,342
50,000
95,342
56,055
-
56,055
46 | P a g e
Notes to the Consolidated Financial Statements
NOTE 5 EXPENSES
(a) Administrative expenses
Accounting, audit and company secretarial fees
Travel expenses
General and administration expenses
(b) Consultancy and legal expenses
Corporate advisory fees
Consulting fees
Legal fees
Vulcan Energy Resources Limited – Annual Report 2020
2020
$
2019
$
151,336 144,325
107,183 25,766
62,401
2,489
320,920 172,580
158,048
52,993
213,562
424,603
105,000
-
4,642
109,642
NOTE 6
INCOME TAX
(a) The components of tax expense comprise:
Current tax
Deferred tax
Income tax expense reported in the of profit or loss and other
comprehensive income
(b) The prima facie tax on loss from ordinary activities before
income tax is reconciled to the income tax as follows:
Loss before income tax expense
Prima facie tax benefit on loss before income tax at 30%
(2019: 30%)
Tax effect of:
Non-deductible expense
Tax losses and temporary differences not brought to account
Foreign corporate rate differential
Income tax expense
(c)
Deferred tax assets/(liabilities) not brought to account are:
Accruals
Prepayments
Other
Tax losses
Total deferred tax balances not brought to account
-
-
-
-
-
-
(3,553,359)
(1,066,008)
(836,664)
(250,999)
603,944
451,694
10,370
-
114,064
136,935
-
-
26,411
(5,743)
20,042
606,194
646,904
15,300
(5,739)
-
164,108
173,669
Potential deferred tax assets attributable to tax losses and other temporary differences have not been
brought to account at 30 June 2020 because the directors do not believe it is appropriate to regard
realisation of the deferred tax assets as probable at this point in time. These benefits will only be
obtained if:
•
the Company derives future assessable income of a nature and of an amount sufficient to
enable the benefit from the deductions for the expenditure to be realised; and
• no changes in tax legislation adversely affect the Company in realising the benefit from the
deductions for the expenditure.
47 | P a g e
Notes to the Consolidated Financial Statements
NOTE 6
INCOME TAX (CONT.)
Accounting Policy
Vulcan Energy Resources Limited – Annual Report 2020
The income tax expense (revenue) for the year comprises current income tax expense (income) and
deferred tax expense (income).
Current Tax
Current income tax expense charged to the profit or loss is the tax payable on taxable income
calculated using applicable income tax rates enacted, or substantially enacted, as at the end of the
reporting period. Current tax liabilities (assets) are therefore measured at the amounts expected to be
paid to (recovered from) the relevant taxation authority.
Deferred Tax
Deferred tax expense reflects movements in deferred tax asset and deferred tax liability balances
during the year as well as unused tax losses.
Current and deferred income tax expense (income) is charged or credited directly to equity instead of
the profit or loss when the tax relates to items that are credited or charged directly to equity.
Deferred tax assets and liabilities are ascertained based on temporary differences arising between the
tax bases of assets and liabilities and their carrying amounts in the financial statements. Deferred tax
assets also result where amounts have been fully expensed but future tax deductions are available. No
deferred income tax will be recognised from the initial recognition of an asset or liability, excluding a
business combination, where there is no effect on accounting or taxable profit or loss.
Deferred tax assets and liabilities are calculated at the tax rates that are expected to apply to the period
when the asset is realised or the liability is settled, based on tax rates enacted or substantively enacted
at the end of the reporting period. Their measurement also reflects the manner in which management
expects to recover or settle the carrying amount of the related asset or liability.
Deferred tax assets relating to temporary differences and unused tax losses are recognised only to the
extent that it is probable that future taxable profit will be available against which the benefits of the
deferred tax asset can be utilised.
Where temporary differences exist in relation to investments in subsidiaries, branches, associates, and
joint ventures, deferred tax assets and liabilities are not recognised where the timing of the reversal
of the temporary difference can be controlled and it is not probable that the reversal will occur in the
foreseeable future.
Current tax assets and liabilities are offset where a legally enforceable right of set-off exists and it is
intended that net settlement or simultaneous realisation and settlement of the respective asset and
liability will occur. Deferred tax assets and liabilities are offset where a legally enforceable right of set-
off exists, the deferred tax assets and liabilities relate to income taxes levied by the same taxation
authority on either the same taxable entity or different taxable entities where it is intended that net
settlement or simultaneous realisation and settlement of the respective asset and liability will occur
in future periods in which significant amounts of deferred tax assets or liabilities are expected to be
recovered or settled.
48 | P a g e
Notes to the Consolidated Financial Statements
NOTE 7
LOSS PER SHARE
Vulcan Energy Resources Limited – Annual Report 2020
2020
$
2019
$
Net loss for the year
(3,553,359)
(836,664)
Weighted average number of ordinary shares for basic and diluted loss
per share.
48,226,596
31,750,001
Basic and diluted loss per share (cents)
(7.37)
(2.64)
Accounting Policy
Basic Loss Per Share
Basic loss per share is determined by dividing net profit or loss after income tax attributable to
members of the Company, excluding any costs of servicing equity other than ordinary shares, by the
weighted average number of ordinary shares outstanding during the financial year, adjusted for
bonus elements in ordinary shares issued during the year.
Diluted Loss Per Share
Diluted loss per share adjusts the figures used in the determination of basic earnings per share to take
into account the after-income tax effect of interest and other financing costs associated with dilutive
potential ordinary shares and the weighted average number of shares assumed to have been issued
for no consideration in relation to dilutive potential ordinary shares.
NOTE 8
CASH AND CASH EQUIVALENTS
Cash at bank and in hand
Short-term deposits
2020
$
2019
$
4,621,557 348,996
1,800,000 3,000,000
6,421,557 3,348,996
(a) Reconciliation of net loss after tax to net cash flows from operations
Loss for the financial year/period
(3,553,359)
(836,664)
Adjustments for:
Share based payments
Impairment expense
Changes in assets and liabilities
Trade and other receivables
Trade and other payables
Net cash used in operating activities
2,040,473
286,017
62,138
287,667
(81,008)
(24,172)
(1,332,049)
61,576
63,776
(361,507)
Accounting Policy
Cash at bank earns interest at floating rates based on daily deposit rates. Short-term deposits are made
in varying periods between one day and three months, depending on the immediate cash
requirements of the Group and earn interest at the respective short-term deposit rates.
49 | P a g e
Notes to the Consolidated Financial Statements
NOTE 9
TRADE AND OTHER RECEIVABLES
GST receivable (net)
VAT receivable (net)
Other receivable
Loan to Vulcan Energy Resources
Allowance for impairment loss
Vulcan Energy Resources Limited – Annual Report 2020
2020
$
47,049
51,430
17,592
-
116,071
2019
$
14,779
-
19,130
1,154
35,063
Other receivables are non-interesting bearing and are generally on terms of 30 days.
Trade Receivables
Trade and other receivables include amounts due from customers for goods sold and services
performed in the ordinary course of business. Receivables expected to be collected within 12 months
of the end of the reporting period are classified as current assets. All other receivables are classified
as non-current assets. Refer to Note 1(b)(ii) for expected credit loss allowance assessment.
Goods and Services Tax (‘GST’)
Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of
GST incurred is not recoverable from the Australian Taxation Office. In these circumstances, the GST
is recognised as part of the cost of acquisition of the asset of the assets or part of the expense.
Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net
amount of GST recoverable from, or payable to, the taxation authority is included as a current asset
or liability in the Consolidated statement of financial position.
Cash flows are presented in the statement of cash flows on a gross basis, except for the GST on investing
and financial activities, which are disclosed as operating cash flows.
Other Receivables
Other receivables are recognised at amortised cost, less any provision for expected credit loss. Other
receivables do not contain impaired assets and are not past due. Based on the credit history, it is
expected that these other balances will be received when due.
NOTE 10
EXPLORATION AND EVALUATION EXPENDITURE
Note
2020
$
2019
$
Carrying amount of exploration and evaluation expenditure
2,556,980
526,001
At the beginning of the period
Exploration expenditure incurred
Vulcan Lithium Project acquisition
Impairment expense
14
526,001
375,541
438,127
-
(286,017) (287,667)
1,195,871
1,121,125
At the end of the period
2,556,980 526,001
50 | P a g e
Vulcan Energy Resources Limited – Annual Report 2020
Notes to the Consolidated Financial Statements
NOTE 10 EXPLORATION AND EVALUATION EXPENDITURE (CONT.)
Accounting Policy
Acquisition, exploration and evaluation costs associated with mining tenements are accumulated in
respect of each identifiable area of interest. These costs are only carried forward to the extent that the
rights of tenure to that area of interest are current and that the costs are expected to be recouped
through the successful commercial development or sale of the area or where activities in the area have
not yet reached a stage that permits reasonable assessment of the existence of economically
recoverable reserves.
Costs in relation to an abandoned area are written off in full against profit in the period in which the
decision to abandon the area is made.
Each area of interest is also reviewed annually, and acquisition costs written off to the extent that they
will not be recoverable in the future.
NOTE 11
TRADE AND OTHER PAYABLES
Trade payables (i)
Accrued expenses
Other payables
2020
$
2019
$
85,903 65,944
74,335 51,000
-
116,944
61,684
221,922
(i) Trade payables are non-interest bearing and are normally settled on 30-day terms.
Due to the short-term nature of these payables, their carrying value is assumed to be the same as their
fair value.
Accounting Policy
Trade payables and other payables represent liabilities for goods and services provided to the Group
prior to the end of the financial year which are unpaid. The amounts are unsecured and are usually
paid within 30 days of recognition.
NOTE 12 CONTRIBUTED EQUITY
(a) Issued and fully paid
2020
2019
No.
$
No.
$
Ordinary shares
67,217,755
11,836,741
31,750,001
4,746,416
Ordinary shares entitle the holder to participate in the dividends and the proceeds on winding up in
proportion to the number of and amounts paid on the shares held.
At shareholders meetings, each ordinary share is entitled to one vote when a poll is called, otherwise
each shareholder has one vote on a show of hands.
51 | P a g e
Notes to the Consolidated Financial Statements
NOTE 12 CONTRIBUTED EQUITY (CONT.)
Vulcan Energy Resources Limited – Annual Report 2020
(b) Movement reconciliation
Date
Number
Issue Price
$
At 1 July 2019
At 30 June 2020
At 1 July 2019
Placement to sophisticated investors
Placement to sophisticated investors
Shares issued for services rendered
Shares to Vendors and Introducers as part of
consideration for the Acquisition
Shares
performance and retain services
to Director
incentive
issued
to
31,750,001
67,217,755
31,750,001
2,820,000
3,513,334
1,000,000
4,746,416
11,836,741
4,746,416
423,000
527,000
200,000
$0.15
$0.15
$0.20
1/07/2019
10/07/2019
19/07/2019
5/08/2019
4/09/2019
7,666,667
$0.15
1,150,000
4/09/2019
750,000
$0.15
112,500
Share issue to Director for participation in
Placement
4/09/2019
1,000,000
$0.15
150,000
Less Capital raising costs
-
-
Conversion of Class A performance shares and
Class D performance rights
Conversion of Class A performance rights
Conversion of Class A performance shares
Conversion of listed options
Placement to sophisticated investors
Less Capital raising costs
28/02/2020
5,170,000
30/06/2020
30/06/2020
30/06/2020
30/06/2020
30/06/2020
800,000
480,000
267,753
12,000,000
-
-
-
-
-
$0.285
$0.40
-
(58,425)
-
-
-
76,310
4,800,000
(290,060)
At 30 June 2020
Accounting Policy
Ordinary shares are classified as equity.
67,217,755
11,836,741
Incremental costs directly attributable to the issue of new shares or options are shown in equity as
a deduction, net of tax, from the proceeds. Incremental costs directly attributable to the issue of
new shares or options for the acquisition of a business are not included in the cost of the acquisition
as part of the purchase consideration.
If the entity reacquires its own equity instruments, for example, as a result of a share buy-back,
those instruments are deducted from equity and the associated shares are cancelled. No gain or
loss is recognised in the profit or loss and the consideration paid including any directly attributable
incremental costs (net of income taxes) is recognised directly in equity.
NOTE 13
RESERVES
Share-based payment reserve
Foreign currency translation reserve
Total
2020
$
2019
$
1,741,986
(22,016)
1,719,970
164,013
-
164,013
52 | P a g e
Notes to the Consolidated Financial Statements
NOTE 13
RESERVES (CONT.)
Movement reconciliation
Share-based payment reserve
Balance at the beginning of the year
Issue of listed options
Option issue costs
Equity settled share-based payment transactions (Note 16)
Balance at the end of the year
Share-based payment reserve
Vulcan Energy Resources Limited – Annual Report 2020
164,013
-
-
1,577,973
1,741,986
-
126,875
(25,000)
62,138
164,013
The option reserve is used to record the value of share-based payments provided to outside parties,
and share-based remuneration provided to employees and directors.
Foreign Currency Translation Reserve
Balance at the beginning of the year
Movement during the year
Balance at the end of the year
NOTE 14 ACQUISITION OF SUBSIDIARY
2020
$
2019
$
-
(22,016)
(22,016)
-
-
-
On 4 September 2019, the Company successfully completed its acquisition of 100% of the issued capital
of Vulcan Energy Resources Europe Pty Ltd (“the Vulcan Lithium Project”). The acquisition was
assessed as an asset acquisition rather than a business combination. The Company issued 6,666,667
fully paid ordinary shares in the Company to the Vendors, Dr Wedin and Dr Horst Kreuter to acquire
the asset.
Purchase consideration
Fair value of shares issued
Fair value of net assets acquired are as follows:
Cash and cash equivalents
Exploration and evaluation expenditure
Trade and other payables
4
September
2019
$
1,000,000
1,000,000
404
1,121,125
(121,529)
1,000,000
53 | P a g e
Notes to the Consolidated Financial Statements
NOTE 15
FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES
Vulcan Energy Resources Limited – Annual Report 2020
The Group’s activities expose it to a variety of financial risks: market risk (including foreign exchange
risk and interest rate risk), credit risk and liquidity risk. The Group’s overall risk management
programme focuses on the unpredictability of the financial markets and seeks to minimise potential
adverse effects on the financial performance of the Group. The Group uses different methods to
measure and manage different types of risks to which it is exposed.
These include monitoring levels of exposure to interest rate and foreign exchange risk and assessments
of market forecasts for interest rate and foreign exchange prices. Ageing analysis and monitoring of
specific credit allowances are undertaken to manage credit risk. Liquidity risk is monitored through
the development of future cash flow forecasts.
Risk management is carried out by Management and overseen by the Board of Directors with assistance
from suitably qualified external advisors.
The main risks arising for the Group are foreign exchange risk, interest rate risk, credit risk and
liquidity risk. The Board reviews and agrees policies for managing each of these risks and they are
summarised below.
The carrying values of the Group’s financial instruments are as follows:
Financial Assets
Cash and cash equivalents
Trade and other receivables
Financial Liabilities
Trade and other payables
2020
$
2019
$
6,421,557
116,071
6,537,628
3,348,996
35,063
805,210
266,284
3,384,059 1,114,220
221,922
221,922
116,944
116,944
393,933
393,933
(a) Market risk
(i)
The Group was not significantly exposed to foreign currency risk fluctuations.
Foreign exchange risk
(ii)
Interest rate risk
The Group is exposed to interest rate risk, which is the risk that a financial instrument’s value will
fluctuate as a result of changes in the market interest rates on interest bearing financial instruments.
The Group’s exposure to this risk relates primarily to the Group’s cash and any cash on deposit. The
Group does not use derivatives to mitigate these exposures. The Group manages its exposure to
interest rate risk by holding certain amounts of cash in fixed and floating interest rate facilities. At
the reporting date, the interest rate profile of the Group’s interest-bearing financial instruments was:
2020
2019
Cash and cash equivalents
Weighted
average
interest rate
0.08%
Balance
$
6,421,557
Weighted
average
interest
rate
1.68%
Balance
$
3,348,996
54 | P a g e
Notes to the Consolidated Financial Statements
NOTE 15
FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (CONT.)
Vulcan Energy Resources Limited – Annual Report 2020
Sensitivity
Within the analysis, consideration is given to potential renewals of existing positions and the mix of
fixed and variable interest rates. The following sensitivity analysis is based on the interest rate risk
exposures in existence at the reporting date. The 1% increase and 1% decrease in rates is based on
reasonably expected possible changes over a financial year.
At 30 June 2020, if interest rates had moved, as illustrated in the table below, with all other variables
held constant, losses and equity would have been affected as follows:
Judgements of reasonably possible
movements:
+ 1.0% (100 basis points)
- 1.0% (100 basis points)
Profit
higher/(lower)
2020
$
64,216
(64,216)
Profit
higher/(lower)
2019
$
33,490
(33,490)
(b) Credit risk
Credit risk arises from the financial assets of the Group, which comprise cash and cash equivalents,
trade and other receivables and other financial assets. The Group’s exposure to credit risk arises from
potential default of the counterparty, with maximum exposure equal to the carrying amount of the
financial assets.
The Group’s policy is to trade only with recognised, creditworthy third parties. It is the Group’s policy
that all customers who wish to trade on credit terms will be subject to credit verification procedures.
In addition, receivable balances are monitored on an ongoing basis with the result that the Group’s
exposure to bad debts is not significant. There are no significant concentrations of credit risk within
the Group except for cash and cash equivalents.
(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 its reputation.
The Group manages liquidity risk by maintaining adequate cash reserves from funds raised in the
market and by continuously monitoring forecast and actual cash flows. The Group does not have any
external borrowings.
The following are the contractual maturities of financial liabilities:
2020
1 year or
less
$
1-5 years
$
> 5 years
$
Total
$
Trade and other payables
221,922
2019
Trade and other payables
116,944
-
-
-
-
221,922
116,944
55 | P a g e
Notes to the Consolidated Financial Statements
NOTE 15
FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (CONT.)
(d) Capital risk management
Vulcan Energy Resources Limited – Annual Report 2020
The Group’s objectives when managing capital are to:
• Safeguard their ability to continue as a going concern, so that it can continue to provide returns for
shareholders and benefits for other stakeholders; and
• Maintain an optimal capital structure to reduce the cost of capital.
In order to maintain or adjust the capital structure, the Group may adjust the number of dividends
paid to shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt.
Given the stage of the Company’s development there are no formal targets set for return on capital.
The Company is not subject to externally imposed capital requirements. The net equity of the
Company is equivalent to capital. Net capital is obtained through capital raisings on the Australian
Securities Exchange (“ASX”).
NOTE 16 SHARE BASED PAYMENTS
Share based payment- investor relationship
Share based payment- introducer fee
Performance rights issued to Directors (i)
Performance shares issued to Vendors of Acquisition (ii)
Shares issued for consideration of services (iii)
Performance rights issued to staff (iv)
2020
$
200,000
150,000
350,000
626,942
888,348
112,500
62,684
1,690,473
2019
$
-
-
-
62,138
-
-
-
62,138
(i) In the prior year, 3,900,000 performance rights were granted and issued to directors. The
value of each rights as set out below in the summary of performance rights granted. These
were issued on 20 December 2018.
On 4 September 2019, the Company issued 3,750,000 performance rights to Mr Gavin Rezos
as an incentive in connection with his appointment as Chairman. A share-based payment
expense has been recognised in the Statement of Profit or Loss and Other Comprehensive
Income.
Fair value of each
$0.1463
Class A
Class B
$0.1124
Class C
$0.0906
Class D
$0.1500
Class E
$0.1500
Class F
$0.1500
right
Expected volatility
90%
90%
90%
N/A
N/A
N/A
Grant date
30/11/2018 30/11/2018 30/11/2018
4/09/2019
4/09/2019
4/09/2019
Price at grant date
$0.18
$0.18
$0.18
$0.15
$0.15
$0.15
Expiry date
30/11/2021 30/11/2021 30/11/2021
4/09/2020
4/09/2021
4/09/2022
Vesting hurdle (5-day
$0.40
$0.75
$1.10
N/A
N/A
VWAP)
Interest rate
2.06%
2.06%
2.06%
N/A
N/A
N/A
N/A
Number of Rights
1,200,00
1,200,000
1,500,000
1,250,000
1,250,000
1,250,000
Total value of rights
$175,560
$134,880
$135,900
$187,500
$187,500
$187,500
56 | P a g e
Notes to the Consolidated Financial Statements
NOTE 16 SHARE BASED PAYMENTS (CONT.)
Vulcan Energy Resources Limited – Annual Report 2020
(ii) On 4 September 2019, the Company issued 13,200,000 Performance Shares (PS) issued to
Vendors of the Vulcan Lithium Project Acquisition which will each convert into a Share on a
one for one basis on the satisfaction of milestones. Based on management assessment,
percentage of a share-based payment expense has been recognised in the Statement of Profit
or Loss and Other Comprehensive Income.
Class A
Class B
Class C
Fair value of each PS
Expected volatility
$0.15
N/A
$0.15
N/A
$0.15
N/A
Grant date
4/09/2019
4/09/2019
4/09/2019
Price at grant date
$0.15
$0.15
$0.15
Expiry date
4/09/2020
4/09/2021
4/09/2022
Vesting hurdle (5-day
N/A
VWAP)
Interest rate
Number of PS
N/A
N/A
N/A
N/A
N/A
4,400,000
4,400,000
4,400,000
Total value of PS
$660,000
$660,000
$660,000
(iii) 750,000 ordinary shares issued to Gavin Rezos to incentivise the continued performance and
to assist the Company in retaining his services and expertise. A share-based payment expense
has been recognised in the Statement of Profit or Loss and Other Comprehensive Income.
(jjj) On 18 May 2020, the Company issued 1,250,000 performance rights to staff as incentive in
connection with their appointment. A share-based payment expense has been recognised in
the Statement of Profit or Loss and Other Comprehensive Income.
Fair value of each right
Expected volatility
Grant date
Class G
$0.225
N/A
Class H
$0.225
N/A
Class I
$0.225
N/A
11/05/2020
11/05/2020 &
14/05/2020
Price at grant date
Expiry date
Vesting hurdle (5-day VWAP)
Interest rate
Number of Rights
Total value of rights
$0.225
1/12/2023
N/A
N/A
250,000
$56,250
14/5/2020
$0.225
$0.225
1/12/2023
1/12/2023
N/A
N/A
500,000
$112,500
N/A
N/A
500,000
$112,500
57 | P a g e
Notes to the Consolidated Financial Statements
NOTE 16 SHARE BASED PAYMENTS (CONT.)
Terms and conditions of Performance rights:
Vulcan Energy Resources Limited – Annual Report 2020
Tranche
Class A
Class B
Class C
Class D
Class E
Class F
Class G
Class H
Class I
Terms
Will vest if, at any time within 36 months following grant date of the Rights the
VWAP of the Company’s shares traded on the ASX over five (5) consecutive trading
days is equal to or greater than $0.40.
Will vest if, at any time within 36 months following grant date of the Rights the
VWAP of the Company’s shares traded on the ASX over five (5) consecutive trading
days is equal to or greater than $0.75.
Will vest if, at any time within 36 months following grant date of the Rights the
VWAP of the Company’s shares traded on the ASX over five (5) consecutive trading
days is equal to or greater than $1.10.
Vest immediately and convert into Shares on the Company announcing a positive
scoping study in relation to the Vulcan Lithium Project, confirming the Vulcan
Lithium Project is commercially viable within 12 months of completion of the
Acquisition.
Vest immediately and will convert into shares on the Company announcing a
positive preliminary feasibility study in relation to the Vulcan Lithium Project,
confirming the Vulcan Lithium Project is commercially viable within 24 months
of completion of the Acquisition.
Vest immediately and will convert into shares on the Company announcing that
it has secured either an offtake agreement representing a minimum of 30% of
production volume over a three year term, or a downstream joint venture partner
with a minimum $10,000,000 investment in relation to the Vulcan Lithium Project
within 36 months of completion of the Acquisition.
Will vest upon the holder completing six months continuous employment with
the Company, with an expiry date of 1 December 2023.
Will vest upon the Company announcing a positive preliminary feasibility study
in relation to the Vulcan Lithium Project, confirming the Lithium Project is
commercially viable within two years of issue of the Performance Rights, with an
expiry date of 1 December 2023.
Will vest upon the Company announcing that it has secured either an off-take
agreement representing a minimum of 30% of production volume over a three
year term, or a downstream lithium chemicals joint venture partner with a
minimum $10,000,000 investment in relation to the Vulcan Lithium Project within
three years of issue of the Performance Rights, with an expiry date of 1 December
2023.
Set out below are summaries of performance rights granted under the plan:
30 June 2020
Grant date Expiry date
30/11/2018
18/5/2020
30/11/2021
1/12/2023
Balance at
the start of
the year
Granted
Exercised
Expired/
forfeited/
other
Balance at
the end of
the year
3,900,000
3,900,000
-
1,250,000
1,250,000
(800,000)
(2,600,000)
(800,000)
(2,600,000)
500,000
1,250,000
1,750,000
58 | P a g e
Notes to the Consolidated Financial Statements
NOTE 16 SHARE BASED PAYMENTS (CONT.)
Accounting Policy
Vulcan Energy Resources Limited – Annual Report 2020
Equity-settled and cash-settled share-based compensation benefits are provided to Key Management
Personnel and employees.
Equity-settled transactions are awards of shares, or options over shares, that are provided to
employees in exchange for the rendering of services. Cash-settled transactions are awards of cash for
the exchange of services, where the amount of cash is determined by reference to the share price.
The cost of equity-settled transactions are measured at fair value on grant date. Fair value is
independently determined using an appropriate valuation model that takes into account the exercise
price, the term of the option, the impact of dilution, 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, together with non-vesting conditions that do not determine whether the
consolidated entity receives the services that entitle the employees to receive payment. No account is
taken of any other vesting conditions.
The cost of equity-settled transactions are recognised as an expense with a corresponding increase in
equity over the vesting period. The cumulative charge to profit or loss is calculated based on the grant
date fair value of the award, the best estimate of the number of awards that are likely to vest and the
expired portion of the vesting period. The amount recognised in profit or loss for the period is the
cumulative amount calculated at each reporting date less amounts already recognised in previous
periods.
The cost of cash-settled transactions is initially, and at each reporting date until vested, determined
by applying an appropriate valuation model, taking into consideration the terms and conditions on
which the award was granted. The cumulative charge to profit or loss until settlement of the liability
is calculated as follows:
a. During the vesting period, the liability at each reporting date is the fair value of the award at that
date multiplied by the expired portion of the vesting period.
b. From the end of the vesting period until settlement of the award, the liability is the full fair value
of the liability at the reporting date.
All changes in the liability are recognised in profit or loss. The ultimate cost of cash-settled
transactions is the cash paid to settle the liability.
Market conditions are taken into consideration in determining fair value. Therefore, any awards
subject to market conditions are considered to vest irrespective of whether or not that market
condition has been met, provided all other conditions are satisfied.
If equity-settled awards are modified, as a minimum an expense is recognised as if the modification
has not been made. An additional expense is recognised, over the remaining vesting period, for any
modification that increases the total fair value of the share-based compensation benefit as at the date
of modification.
If the non-vesting condition is within the control of the consolidated entity or employee, the failure to
satisfy the condition is treated as a cancellation. If the condition is not within the control of the
consolidated entity or employee and is not satisfied during the vesting period, any remaining expense
for the award is recognised over the remaining vesting period, unless the award is forfeited.
59 | P a g e
Notes to the Consolidated Financial Statements
NOTE 16 SHARE BASED PAYMENTS (CONT.)
Vulcan Energy Resources Limited – Annual Report 2020
If equity-settled awards are cancelled, it is treated as if it has vested on the date of cancellation, and
any remaining expense is recognised immediately. If a new replacement award is substituted for the
cancelled award, the cancelled and new award is treated as if they were a modification.
NOTE 17
RELATED PARTY DISCLOSURE
(a) Key Management Personnel Compensation
The aggregate compensation made to directors and other members of key management personnel of
the consolidated entity is set out below.
Short-term benefits
Post-employment benefits
Share-based payments
(b) Transactions with related parties
Terms and conditions
2020
$
2019
$
471,534
20,443
259,998
-
384,616 62,138
322,136
876,593
All transactions were made on normal commercial terms and conditions and at market rates.
During the financial year 6,666,667 fully paid ordinary shares in the Company were issued to the
shareholders of Vulcan, Dr Francis Wedin and Dr Horst Kreuter (Vendors) (Consideration Shares) and;
13,200,000 Performance Shares to be issued to the Vendors, which will each convert into a Share on a
one for one basis on satisfaction the following milestones:
• 4,400,000 Shares on satisfaction of Milestone 1;
• 4,400,000 Shares on satisfaction of Milestone 2; and
• 4,400,000 Shares on satisfaction of Milestone3.
During the financial year, payments for engineering services of €77,035, (A$130,128) were made to
GeoThermal Engineering GmbH, a related party of Horst Krueter. Dr Kreuter was paid $43,474
consulting fees prior to becoming a Director of the Company. There was no trade payable balance at 30
June 2020.
During the financial year, payments for corporate advisory services outside of Australia of $73,185 were
made to Viaticus Capital, a related party of Mr Rezos. Viaticus Capital also received fees of $18,000 for
capital raising fees associated with a placement undertaken in June 2020. There was $33,000 trade
payable/accrual balance at 30 June 2020.
There were no related party transactions during the previous financial year.
There were no loans made to any KMP during the year ended 30 June 2020 (2019: Nil).
Other than the above, there were no other transactions with KMP during the year ended 30 June 2020.
60 | P a g e
Notes to the Consolidated Financial Statements
NOTE 18
COMMITMENTS
Below are the commitments in relation to its exploration and evaluation assets:
Vulcan Energy Resources Limited – Annual Report 2020
Within one year
One to five years
NOTE 19
CONTINGENCIES
2020
$
163,639
163,639
327,278
2019
$
-
-
-
As part of the acquisition of Koppar Resources Europe Pty Ltd in the prior year, the Company agrees
that:
(a) Upon completion of a scoping study by Koppar for the development of any of the Projects where
a JORC compliant measured, indicated or inferred resource is identified at any of the Projects,
the Company will issue 4,000,000 fully paid ordinary shares in the capital of Koppar at a deemed
issue price of $0.20 per Share to the Shareholders; and
(b) Upon completion of a definitive feasibility study for the development of any of the Projects
based on a JORC compliant measured or indicated resource being identified at any of the
Projects, it will issue 4,000,000 fully paid ordinary shares in the capital of Koppar at a deemed
issue price of $0.20 per Share to the Shareholders.
As part of the acquisition of Vulcan Lithium Project, the Company agrees to pay the following by way
of an introduction and facilitation fees:
1,980,000 ordinary shares to be issued as follows:
(a) 660,000 ordinary shares to be issued on satisfaction of Milestone 1;
(b) 660,000 ordinary shares to be issued on satisfaction of Milestone 2; and
(c) 660,000 ordinary shares to be issued on satisfaction of Milestone 3.
As part of the acquisition of Vulcan Lithium Project, the Company agrees to pay the following by way of
deferred consideration of remaining 8,800,000 (13,200,000 less 4,400,000) Performance Shares to be
issued to the Vendors, which will each convert into a Share on a one for one basis on satisfaction the
following milestones:
• 4,400,000 Shares on the Company announcing a positive preliminary feasibility study in relation
to the Vulcan Lithium Project, confirming the Vulcan Lithium Project is commercially viable
within 24 months of completion of the Acquisition (Milestone 2); and
• 4,400,000 Shares on the Company announcing that it has secured an off-take agreement
representing a minimum of 30% of production volume over a three year term, or a downstream
joint venture partner with a minimum $10,000,000 investment in relation to the Vulcan Lithium
Project within 36 months of completion of the Acquisition (Milestone 3), (together, the Deferred
Consideration).
Other than the above, there are no other contingent assets or contingent liabilities as at 30 June 2020.
61 | P a g e
Notes to the Consolidated Financial Statements
NOTE 20 AUDITOR’S REMUNERATION
Amounts received or due and receivable by RSM Australia Partners
for:
Audit and review of the annual and half-year financial report
Other services - RSM Australia Pty Ltd for:
- Other
NOTE 21
ACCCUMULATED LOSSES
Balance at beginning of the year
Loss after income tax for the year
Balance at end of the year
NOTE 22
INVESTMENT IN CONTROLLED ENTITIES
Vulcan Energy Resources Limited – Annual Report 2020
2020
$
2019
$
31,500
25,000
-
31,500
1,500
26,500
2020
$
2019
$
(1,117,313)
(3,553,359)
(4,670,672)
(280,649)
(836,664)
(1,117,313)
Principal
Activities
Country of
Incorporati
on
Ownership
Interest
Ownership
Interest
Koppar Resources Europe Pty Ltd
Vulcan Energy Resources Europe Pty Ltd
Vulcan Energie Ressourcen GmbH
Exploration
Exploration
Exploration
Australia
Australia
Germany
NOTE 23
PARENT ENTITY
Assets
Current assets
Non-current assets
Total assets
Liabilities
Current liabilities
Total liabilities
Equity
Contributed equity
Reserves
Accumulated losses
Total equity
Loss for the year
Total comprehensive loss
2020
%
100
100
100
2020
$
2019
%
100
-
-
2019
$
6,330,432
2,745,876
9,076,308
3,379,725
530,607
3,910,332
190,270
190,270
117,216
117,216
11,836,741
1,741,986
(4,692,689)
8,886,038
4,746,416
164,013
(1,117,313)
3,793,116
(3,575,376)
(3,575,376)
(836,213)
(836,213)
62 | P a g e
Notes to the Consolidated Financial Statements
NOTE 23 PARENT ENTITY (CONT.)
Vulcan Energy Resources Limited – Annual Report 2020
Contingent liabilities
Other than disclosed at Note 19, the parent entity has no other contingent assets or contingent
liabilities as at 30 June 2020 and 30 June 2019.
Capital commitments - Property, plant and equipment
The parent entity had no capital commitments for property, plant and equipment as at 30 June 2020
and 30 June 2019.
Exploration commitments
The parent entity has no exploration commitments.
Significant accounting policies
The accounting policies of the parent entity are consistent with those of the consolidated entity, as
disclosed in the financial statements, except for the following:
•
Investments in subsidiaries are accounted for at cost, less any impairment, in the parent
entity.
NOTE 24 EVENTS AFTER THE REPORTING DATE
On 8 July 2020, the Company announced it had signed an Investment agreement with EU-backed EIT
InnoEnergy for staged cash investments into Vulcan, with initial tranche valued at A$0.51/share,
equivalent to the 15-day VWAP and at an 8.5% premium to 30-day VWAP, subject to shareholder
approval.
EIT InnoEnergy will provide the following staged payments to Vulcan Energie Ressourcen GmbH,
the Company’s 100%-owned German subsidiary (Subsidiary):
(a) an initial payment of €150,000 (Tranche 1, equivalent to $245,534 at current exchange rates).
(b) further payment of €50,000 after approval by EIT InnoEnergy of the financial and
performance reporting related to expenditure of Tranche 1 funding on approved work
packages Tranche 2).
(c) a final settlement of €50,000 of approved funding after approval by EIT InnoEnergy of the
final financial and performance reporting for the expenditure of Tranche 1 and Tranche 2
funding
The Company has agreed to grant Warrants to EIT InnoEnergy on payment of each Tranche of
funding, in the following amounts:
(a) Tranche 1: 479,519 Warrants subject to shareholder approval (being the Australian dollar
amount of the Tranche 1 funding, divided by $0.512, which was the volume weighted average
price (VWAP) for Shares over the last 15 days on which Shares were traded immediately
prior to execution of the funding agreements; and
(b) Tranches 2 and 3: the number equal to the Australian dollar amount of the relevant Tranche
of funding, divided by the VWAP for Shares over the last 15 days on which Shares were
traded immediately prior to EIT InnoEnergy paying the relevant Tranche of the funding.
Shareholder approval for Tranche 1 warrants was received on 10 September 2020. and 479,519
warrants were issued on 16 September 2020. The Warrants will convert into Shares on a one for
one basis on exercise.
63 | P a g e
Notes to the Consolidated Financial Statements
NOTE 24 EVENTS AFTER THE REPORTING DATE (CONT.)
Vulcan Energy Resources Limited – Annual Report 2020
On 31 July 2020 the Company appointed London-based Natural Resources Global Capital Partners
Limited (“NRG”) to provide strategic and financial advice in connection with the Vulcan’s Zero
Carbon Lithium™ Project. NRG will assist Vulcan with financial advice related to potential future
transactions surrounding funding for its Definitive Feasibility Study (“DFS”) and first commercial
lithium hydroxide production plant.
On 3 August 2020 the Company announced that Lithium concentrate has been successfully produced
from Upper Rhine Valley geothermal brine during a series of successful benchscale Direct Lithium
Extraction (DLE) tests commissioned by Vulcan. Two different, pre-selected DLE adsorbents were
tested and in both cases the lithium recovery rate exceeded 90% on first pass. The tested DLE
adsorbents are of a type already used commercially on lithium brines worldwide, which reduces
development risk, in line with Vulcan’s strategy of utilising established technologies.
On 1 September 2020 the Company announced that Dr. Katharina Gerber has accepted an executive
role as Project Manager with the Company, and relocated with her family from California back to
Germany to focus on developing the Zero Carbon Lithium™ Project full time.
On 31 August Vulcan announced the grant of its Taro License in the Vulcan Zero Carbon Lithium™
Project area in the Upper Rhine Valley, and maiden Taro Licence Inferred Resource estimate. In
conjunction with this, Vulcan has re-totalled the collective Mineral Resource estimations for the Upper
Rhine Valley Project (URVP) area within the Zero Carbon Lithium™ Project.
The Taro license area has been granted to Global Geothermal Holding UG (GGH), with which Vulcan
has agreement to earn a 51% interest by spending €500,000 within two years of the license grant
(Initial Expenditure). After the Initial Expenditure, a Joint Venture will be formed, with Vulcan owning
51% and GGH 49%. Vulcan will then spend a further €500,000 to earn a further 29% (Second Earn-In
Expenditure) with two years, to take its JV interest to 80%. Once VER has spent the minimum amount
and has taken its share to 80%, GGH can elect to co-fund the project pro rata, or be diluted by an
industry-standard formula whilst Vulcan continues to develop the project. Should GGH be diluted
below 5%, its share will be converted to a non-diluting 2% net royalty.
On 10 September 2020 the Company held a General Meeting and approved the following resolutions:-
Resolution 1 Ratification of Issue of Placement Shares issued under Listing Rule 7.1
Resolution 2 – Ratification of Issue of Placement Shares issued under Listing 7.1A
Resolution 3 – Issue of Broker Options to Merchant Group
Resolution 4 – Issue of Milestone 1 Deferred Introducer Shares
Resolution 5 – Issue of Tranche 1 Warrants to EIT InnoEnergy
Resolution 6 – Issue of Performance Rights to Mr Gavin Rezos
Resolution 7 – Issue of Performance Rights to Dr Horst Kreuter
The grant of Performance Rights to Mr Rezos and Mr Kreuter comprised of:-
Class M
Performance
Rights
1,500,000 to Dr Kreuter
(or his nominee)
Vesting on issue, and converting to Shares on a
one for one basis on the Company announcing, on
or before 21 May 2021, a positive Pre-Feasibility
Study in relation to the Company’s Zero Carbon
Lithium™ Project confirming it is commercially
viable.
64 | P a g e
Notes to the Consolidated Financial Statements
NOTE 24 EVENTS AFTER THE REPORTING DATE (CONT.)
Vulcan Energy Resources Limited – Annual Report 2020
Class N
Performance
Rights
1,500,000 to Dr Kreuter
(or his nominee)
Vesting on issue, and converting to Shares on a
one for one basis on the Company announcing, on
or before 21 May 2022, that it has secured either
an off-take agreement representing a minimum of
30% of production volume over a three year term,
or a downstream lithium chemicals joint venture
partner with a minimum of $10,000,000
investment in relation to the Project.
Class J
Performance
Rights
1,500,000 to Dr Kreuter
(or his nominee)
1,000,000 to Mr Rezos
Vesting on issue, and converting to Shares on a
one for one basis once both of the following have
been satisfied:
•
•
the Company announcing, within 36 months
from the date of issue, a positive Definitive
Feasibility Study in relation to the Project
confirming it is commercially viable; and
the VWAP for Shares as traded on ASX over
20 consecutive trading days is equal to or
greater than 225% of the VWAP for Shares
for the last 5 trading days up to but not
including the date of the Meeting (the
Reference Price).
Class K
Performance
Rights
1,000,000 to Mr Rezos (or
his nominee)
Vesting on issue, and converting to Shares on a
one for one basis once both of the following have
been satisfied:
•
•
the Company announcing, within 36 months
from the date of issue, a positive Pre-
the
in
Feasibility Study
Company’s Zero Carbon Lithium™ Project
confirming it is commercially viable; and
relation
to
the VWAP for Shares as traded on ASX over
20 consecutive trading days is equal to or
greater than 150% of the Reference Price.
Class L
Performance
Rights
1,000,000 to Mr Rezos (or
his nominee)
Once both of the following have been satisfied:
•
•
the Company announcing, within 36 months
from the date of issue, that it has secured
either an off-take agreement representing a
minimum of 30% of production volume over
a three year term, or a downstream lithium
chemicals joint venture partner with a
minimum of $10,000,000
in
relation to the Project; and
investment
the VWAP for Shares as traded on ASX over
20 consecutive trading days is equal to or
greater than 200% of the Reference Price.
On 16 September 2020 the Company issued the securities approved at the 10 September General
Meeting along with 1,250,000 performance rights to senior management personnel (refer ASX
announcement 16 September 2020 for further details).
65 | P a g e
Notes to the Consolidated Financial Statements
Vulcan Energy Resources Limited – Annual Report 2020
Directors’ Declaration
In the Directors’ opinion:
a) The financial statements and accompanying notes are in accordance with the Corporations Act
2001, including:
i) complying with Australian Accounting Standards, the Corporations Regulations 2001 and other
mandatory professional reporting requirements; and
ii) giving a true and fair view of the consolidated entity’s financial position as at 30 June 2020 and
of its performance for the financial year ended on that date.
b) The financial statements and notes comply with International Financial Reporting Standards.
c) There are reasonable grounds to believe that the Company will be able to pay its debts as and
when they become due and payable.
The Directors have been given the declarations required by section 295A of the Corporations Act 2001.
This declaration is made in accordance with a resolution of the Board of Directors made pursuant to
section 295(5)(a) of the Corporations Act 2001 and is signed for and on behalf of the Directors by:
Gavin Rezos
Chairman
30 September 2020
66 | P a g e
INDEPENDENT AUDITOR’S REPORT
TO THE MEMBERS OF
VULCAN ENERGY RESOURCES LIMITED
Opinion
We have audited the financial report of Vulcan Energy Resources Limited (the Company) and its subsidiaries (the
Group), which comprises the consolidated statement of financial position as at 30 June 2020, the consolidated
statement of profit or loss and other comprehensive income, the consolidated statement of changes in equity and
the consolidated statement of cash flows for the year then ended, and notes to the financial statements, including
a summary of significant accounting policies, and the directors' declaration.
In our opinion, the accompanying financial report of the Group is 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 2020 and of its financial
performance for the year then ended; and
(ii)
Complying with Australian Accounting Standards and the Corporations Regulations 2001.
Basis for Opinion
We conducted our audit in accordance with Australian Auditing Standards. 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 auditor independence requirements of 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 (the Code) that are relevant to our audit of the financial
report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code.
We confirm that the independence declaration required by the Corporations Act 2001, which has been given to
the directors of the Company, would be in the same terms if given to the directors as at the time of this auditor's
report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
opinion.
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.
Key Audit Matter
How our audit addressed this matter
Exploration and Evaluation Expenditure
Refer to Note 10 in the financial statements
The Group has capitalised exploration and evaluation
expenditure with a carrying value of $2,556,980 as at
30 June 2020.
Our audit procedures included:
• Ensuring that the right to tenure of the area of
interest was current;
We considered this to be a key audit matter due to the
significant management
in
assessing the carrying value of the asset including:
judgments
involved
• Determination of whether the exploration and
evaluation expenditure can be associated with
finding specific mineral resources and the basis
on which that expenditure is allocated to an area
of interest;
• Assessing whether any indicators of impairment
are present and if so, judgement applied to
determine and quantify any impairment loss; and
• Assessing whether exploration activities have
reached a stage at which the existence of
economically
reserves may be
determined.
recoverable
• Agreeing a sample of additions to supporting
documentation and ensuring the amounts are
capital in nature and relate to the area of interest;
expense
recognised for the year ended was appropriately
calculated;
• Assessing
impairment
that
the
• Assessing
and
evaluating management’s
assessment of whether indicators of impairment
existed at the reporting date;
• Enquiring with management and
reviewing
budgets and other documentation as evidence
that active and significant operations in, or relation
to, the area of interest will be continued in the
future; and
of
the
Board Minutes,
• Through discussions with the management and
ASX
review
relevant
announcements
documentation,
management’s
assessing
determination that exploration activities have not
yet progressed to the stage where the existence
or otherwise of economically recoverable reserves
may be determined.
other
and
Acquisition of Vulcan Energy Resources Europe Pty Ltd
Refer to Note 14 in the financial statements
On 4 September 2019, the Group acquired a 100%
interest in Vulcan Energy Resources Europe Pty Ltd
for a consideration of $1,000,000.
Our audit procedures included:
• Reviewing
the
acquisition
agreement
to
Accounting for this acquisition is a key audit matter as
it involves management judgements in determining
the acquisition date,
the acquisition accounting
treatment, the fair value of net assets acquired and the
fair value of the purchase consideration.
understand key terms and conditions;
• Evaluating the management determination that the
acquisition did not meet the definition of a business
within AASB 3 Business Combinations and
therefore was an asset acquisition as opposed to
a business combination;
• Assessing management’s determination of the
acquisition date, fair value of consideration paid
and the fair value of the net assets acquired; and
• Reviewing the adequacy and accuracy of the
relevant disclosures in the financial statements.
Other Information
The directors are responsible for the other information. The other information comprises the information included
in the Group's annual report for the year ended 30 June 2020, but does not include the financial report and the
auditor's report thereon.
Our opinion on the financial report does not cover the other information and accordingly we do not express any
form of assurance conclusion thereon.
In connection with our audit of the financial report, our responsibility is to read the other information and, in doing
so, 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.
If, based on the work we have performed, we conclude that there is a material misstatement of this other
information, we are required to report that fact. We have nothing to report in this regard.
Responsibilities of the Directors for the Financial Report
The directors of the Company are responsible for the preparation of the financial report that gives a true and fair
view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such internal
control as the directors determine is necessary to enable the preparation of the financial report that gives a true
and fair view and is free from material misstatement, whether due to fraud or error.
In preparing the financial report, the directors are responsible for assessing the ability of the Group to continue as
a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of
accounting unless the directors either intend to liquidate the Group or to cease operations, or have no realistic
alternative but to do so.
Auditor's Responsibilities for the Audit of the Financial Report
Our objectives are 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 the Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements
can arise from fraud or error and 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 this 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/auditors_responsibilities/ar2.pdf. This
description forms part of our auditor's report.
Report on the Remuneration Report
Opinion on the Remuneration Report
We have audited the Remuneration Report included in the directors’ report for the year ended 30 June 2020.
In our opinion, the Remuneration Report of Vulcan Energy Resources Limited, for the year ended 30 June 2020,
complies with section 300A of the Corporations Act 2001.
Responsibilities
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 responsibility is to express an opinion on the
Remuneration Report, based on our audit conducted in accordance with Australian Auditing Standards.
RSM AUSTRALIA PARTNERS
Perth, WA
Dated: 30 September 2020
TUTU PHONG
Partner
Vulcan Energy Resources Limited – Annual Report 2019
ASX Additional Information
Additional information required by the Australian Securities Exchange and not shown elsewhere in
this Annual Report is as follows. The information is current as of 23 September 2020.
1. Fully paid ordinary shares
• There is a total of 70,834,806 fully paid ordinary shares on issue which are listed on the ASX.
• The number of holders of fully paid ordinary shares is 2,480.
• Holders of fully paid ordinary shares are entitled to participate in dividends and the proceeds
on winding up of the Company.
• There are no preference shares on issue.
2. Distribution of fully paid ordinary shareholders is as follows:
Range
1 - 1,000
1,001 - 5,000
5,001 - 10,000
10,001 - 100,000
100,001 Over
Total
Number of
holders
365
1,010
426
613
66
2480
Number of
shares
260,978
2,733,505
3,444,256
19,637,542
44,758,525
70,834,806
% of Issued
Capital
0.37
3.86
4.86
27.72
63.19
100.00
3. Holders of non-marketable parcels
Holders of non-marketable parcels are deemed to be those whose shareholding is valued at less
than $500.
There are 113 shareholders who hold less than a marketable parcel of shares, amount to 0.06% of
issued capital.
4. Substantial shareholders of ordinary fully paid shares
The names of substantial shareholders who have notified the Company in accordance with section
671B of the Corporations Act 2001 are:
MR FRANCIS EDWARD BARNABAS WEDIN
MR GAVIN REZOS
5. Share buy-backs
Holding
Balance
% of Issued
Capital
11,163,334
3,680,207
15.76
5.20
There is currently no on-market buyback program for any of Vulcan Energy Resources’ listed
securities.
6. Voting rights of Shareholders
All fully paid ordinary shareholders are entitled to vote at any meeting of the members of the
Company and their voting rights are on:
•
•
Show of hands – one vote per shareholders; and
Poll – one vote per fully paid ordinary share.
71 | P a g e
ASX Additional Information
7. Major Shareholders
Twenty Largest Shareholders
Shareholders
Ran
k
JP MORGAN NOMINEES AUSTRALIA PTY LIMITED
VIVIEN ENTERPRISES PTE LTD
1 MR FRANCIS EDWARD BARNABAS WEDIN
2
3
4 MAINVIEW HOLDINGS PTY LTD
5
LHO LA PTY LTD
CITICORP NOMINEES PTY LIMITED
CS FOURTH NOMINEES PTY LIMITED
6
7
8 M & E EARTHMOVING PTY LTD
9
S3 CONSORTIUM HOLDINGS PTY LTD
RHODIUM CAPITAL PTY LTD
SNOWBALL 3 PTY LTD
10
11
12 MR TIMOTHY JOHN NIXON BINNEY &
MRS DIANNE PAMELA BINNEY
13 MAGNI ASSOCIATES PTY LTD
14
15
PHEAKES PTY LTD
PULA HOLDINGS PTY LTD
BNP PARIBAS NOMINEES PTY LTD
16
17 MR JOHN LANGLEY HANCOCK
YEA-SAYER PTY LIMITED
18
DR HORST KREUTER
19
VALIEL PTY LTD
20
Vulcan Energy Resources Limited – Annual Report 2020
Number
Held
Percentag
e
10,513,334
6,487,252
3,680,207
1,750,000
1,715,000
1,542,648
1,044,106
981,000
900,000
14.84%
9.16%
5.20%
2.47%
2.42%
2.18%
1.47%
1.38%
1.27%
750,000
1.06%
725,000
1.02%
700,000
0.99%
650,000
626,501
620,000
0.92%
0.88%
0.88%
597,182
0.84%
589,533
562,500
553,333
500,000
0.83%
0.79%
0.78%
0.71%
Total: Top 20 holders of ORDINARY FULLY PAID SHARES
35,487,596
50.10%
72 | P a g e
ASX Additional Information
Twenty Largest Listed Optionholders
Rank Optionholders
1
2
3
ALDOVALE PTY LIMITED
MR FONDA GRAPSAS
MR GREGORY JOHN MUNYARD &
MRS MARIA ANN MUNYARD &
MISS CARMEN HELENE MUNYARD
MR WILLIAM EWAN SANDOVER
M & E EARTHMOVING PTY LTD
MR JOHN LANGLEY HANCOCK
MR KIERAN JOSEPH HATTON
MR JOHN KWOK MUN YUEN
THE PIONEER DEVELOPMENT FUND LIMITED
4
5
6
7
8
9
10 MAINVIEW HOLDINGS PTY LTD
11
DILJES PTY LTD
12 MR SCOTT IRVINE STEELE
13
HAVENRANCH PTY LIMITED
14 MR BAO FENG PAN &
MS MIN HUA XUAN
15 MR CHAI QUANG EAM &
MRS SIVHUONG TANG
BEST & FAVOURITE VARIETY PTY LTD
15
16 MAGNI ASSOCIATES PTY LTD
17 MR SAM ROBIN HAMMOND
18 MR PHILIP JAMES WHITMONT
19
20 MJKAK PTY LTD
PHEAKES PTY LTD
Vulcan Energy Resources Limited – Annual Report 2020
Number
Held
820,000
542,256
498,340
470,000
459,502
342,475
300,636
290,000
287,429
250,000
213,002
203,818
200,000
Percentage
8.23%
5.44%
5.00%
4.72%
4.61%
3.44%
3.02%
2.91%
2.89%
2.51%
2.14%
2.05%
2.01%
184,280
1.85%
180,000
1.81%
180,000
162,500
158,344
150,000
145,301
130,000
1.81%
1.63%
1.59%
1.51%
1.46%
1.30%
Total: Top 20 holders of LISTED OPTIONS @ $0.285; EXPIRING 2YRS 6M FROM
ISSUE
6,167,583
61.91%
8. Unlisted Options
There are 1,125,250 unlisted options on issue as at 30 September 2020.
9. Tax Status
The Company is treated as a public company for taxation purposes.
10.Franking Credits
The Company has no franking credits.
11.Business Objectives
Vulcan Energy Resources Limited has used its cash and cash equivalents held at the time of listing in
a way consistent with its stated business objectives.
73 | P a g e
Vulcan Energy Resources Limited – Annual Report 2020
ASX Additional Information
12.Tenement Schedule
The following table sets out the tenement information as required by ASX Listing Rule 5.3.3.
Table 1: Mining tenement interests held at the end of the year and their location
Tenements
Holder
Project
Interest
Registration
Number
Status
Date
Granted
Norwegian Licenses
Nygruva
Koppar Resources Europe
Grimsdal
Grimsdalen
Koppar Resources Europe
Grimsdal
Tverrfjellet
Koppar Resources Europe Tverfjellet
Undal 101
Koppar Resources Europe
Undal 102
Koppar Resources Europe
Nyberget 101
Koppar Resources Europe
Undal
Undal
Undal
Undal
Undal
Koppar Resources Europe
Nyberget 102 Koppar Resources Europe
Innerdalen
104
Vangrofta 102 Koppar Resources Europe Vangrofta
Tverrfjellet
102
Tverrfjellet
103
Grimsdalen
101
Grimsdalen
102
Koppar Resources Europe
Koppar Resources Europe
Koppar Resources Europe Tverfjellet
Koppar Resources Europe Tverfjellet
Grimsdal
Grimsdal
Vulcan Zero Carbon Lithium Licenses
Ortenau
Mannheim
Taro
Rheinland
Pfalz MoU
Area25
Ludwig
Hebach
(formerly
Rheinau)
Vulcan Energy Resources
Europe Pty Ltd
Vulcan Energy Resources
Europe Pty Ltd
Global Geothermal
Holding GmbH
Global Geothermal
Holding GmbH
Global Geothermal
Holding GmbH
25 Refer ASX announcement 26/11/2019
100%
100%
100%
100%
100%
100%
100%
100%
100%
0097-1/2017
Granted
07/2017
0101-1/2017
Granted
07/2017
0098-1/2017
Granted
07/2017
1059/2018
Granted
07/2018
1058/2018
Granted
07/2018
1056/2018
Granted
07/2018
1057/2018
Granted
07/2018
1073/2018
Granted
07/2018
1161/2018
Granted
08/2018
100%
1154/2018
Granted
08/2018
100%
0060/2019
Granted
01/2019
100%
1200/2018
Granted
03/2019
100%
1201/2018
Granted
09/2018
100%
Granted
03/2019
100%
Agreement
to farm in
to 80%
MoU to
earn 80%
of Li rights
Agreement
to farm in
to 80%
Agreement
to farm in
to 80%
Granted
06/2019
Granted
08/2020
Granted
Application
Application
74 | P a g e
Vulcan Energy Resources Limited – Annual Report 2020
Corporate Governance Statement
The Company’s Directors are committed to conducting the Company’s business in an ethical manner
and in accordance with the highest standards of corporate governance. The Company has adopted and
substantially complies with the ASX Corporate Governance Principles and Recommendations (3rd
Edition) (Recommendations) to the extent appropriate to the size and nature of the Company’s
operations.
The Company has prepared a Corporate Governance Statement which sets out the corporate
governance practices that were in operation throughout the financial year for the Company, identifies
any Recommendations that have not been followed, and provides reasons for not following such
Recommendations.
The Company’s Corporate Governance Statement and policies can be found on its website:
https://v-er.com/team-zero-carbon/#section-governance
75 | P a g e