Orexplore Technologies : annual financial statements

OREXPLORE TECHNOLOGIES LIMITED

A.B.N. 98 645 505 406

Financial Report For The Year Ended

31 December 2021

Table of Contents

Corporate directory .................................................................................................................................................................................. 3

Directors' report ....................................................................................................................................................................................... 4

Auditor's independence declaration ....................................................................................................................................................... 17

Consolidated Statement of Profit or Loss and Other Comprehensive Income ....................................................................................... 18

Consolidated Statement of Financial Position ........................................................................................................................................ 19

Consolidated Statement of Changes in Equity ........................................................................................................................................ 20

Consolidated Statement of Cash Flows .................................................................................................................................................. 21

1 General Notes ...................................................................................................................................................................................... 22

1.1 General information ..................................................................................................................................................................... 22

1.2 Basis of preparation ...................................................................................................................................................................... 22

1.3 Principles of Consolidation ........................................................................................................................................................... 23

1.4 Accounting Acquirer .................................................................................................................................................................... 24

1.5 Foreign currency .......................................................................................................................................................................... 25

1.6 Changes to accounting standards and interpretations ................................................................................................................. 25

1.7 Critical accounting estimates and judgements ............................................................................................................................. 26

1.8 Going Concern .............................................................................................................................................................................. 27

1.9 COVID-19 ...................................................................................................................................................................................... 27

1.10 Disclosure of interest in other entities ....................................................................................................................................... 27

1.11 First-time adoption of IFRS ......................................................................................................................................................... 28

Group reconciliation of equity as at 1 January 2020 (date of transition to IFRS) ................................................................................... 29

Group reconciliation of equity as at 31 December 2020 ........................................................................................................................ 30

Group reconciliation of total comprehensive income for the year ended 31 December 2020 .............................................................. 31

2 Financial performance ......................................................................................................................................................................... 32

2.1 Operating segments ..................................................................................................................................................................... 32

2.2 Revenue and other income .......................................................................................................................................................... 32

2.3 Other expenses ............................................................................................................................................................................. 33

2.4 Income tax .................................................................................................................................................................................... 34

2.5 Dividends ...................................................................................................................................................................................... 35

2.6 Basic and diluted loss per share ................................................................................................................................................... 36

3 Assets and Liabilities ............................................................................................................................................................................ 36

3.1 Cash and restricted cash ............................................................................................................................................................... 36

3.2 Trade and other receivables ......................................................................................................................................................... 37

3.3 Inventories .................................................................................................................................................................................... 39

3.4 Property, plant and equipment .................................................................................................................................................... 40

3.5 Intangible assets ........................................................................................................................................................................... 42

3.6 Right-of-use assets ........................................................................................................................................................................ 43

3.7 Net deferred tax assets/(liabilities) .............................................................................................................................................. 43

3.8 Trade and other payables ............................................................................................................................................................. 44

3.9 Deferred income liability .............................................................................................................................................................. 44

3.10 Lease liabilities ............................................................................................................................................................................ 45

3.11 Provisions .................................................................................................................................................................................... 46

3.12 Business combinations and acquisition ...................................................................................................................................... 47

4 Capital Structure .................................................................................................................................................................................. 48

4.1 Issued capital ................................................................................................................................................................................ 49

4.2 Reserved Shares ........................................................................................................................................................................... 50

4.3 Foreign Currency Reserve ............................................................................................................................................................. 50

4.4 Share based payments .................................................................................................................................................................. 50

5 Other Notes .......................................................................................................................................................................................... 52

5.1 Contingent liabilities ..................................................................................................................................................................... 53

5.2 Legal Parent information .............................................................................................................................................................. 53

5.3 Related party transactions ............................................................................................................................................................ 53

5.4 Financial instruments risk management objectives and policies ................................................................................................. 54

5.5 Events after the reporting period ................................................................................................................................................. 55

5.6 Auditor Remuneration .................................................................................................................................................................. 56

Directors' Declaration ............................................................................................................................................................................. 57

Auditors report ....................................................................................................................................................................................... 58

CORPORATE DIRECTORY
Directors
Alan Bye	Non-Executive Chairman
Brett Giroud	Managing Director
Kent Swick	Non-Executive Director
Stuart Carmichael	Non-Executive Director
Stefan Sädbom	Non-Executive Director
Company Secretary
Frank Campagna
Registered and Principal Office	Share Registry
75 McDonald Crescent	Automic Pty Ltd
Bassendean WA 6054	Level 5, 191 St Georges Terrace
Phone: [phone]	Perth WA 6000
Website:www.orexplore.com	Phone (within Australia): 1300 288 664
Email:[e-mail]	Phone (outside Australia): [phone]
Email:[e-mail]
Website:www.automicgroup.com.au
Solicitors	Stock Exchange Listing
HWL Ebsworth Lawyers	Australian Securities Exchange (ASX: OXT)
Level 20, 240 St Georges Terrace
Perth WA 6000
Auditor	Banker
Ernst & Young	National Australia Bank Ltd
11 Mounts Bay Road
Perth WA 6000

DIRECTORS' REPORT

Your Directors present their report, together with the financial statements of Orexplore Technologies Limited ("Orexplore" the "Parent" or the "Company") and its controlled entities (collectively referred to as "Orexplore Group" or the "Group") for the financial year ended 31 December 2021. The names and particulars of the directors of the company during or since the end of the financial year are:

Information on directors

Alan Bye

Non-executive chairman

Qualifications

BSc, BSc Hons, PhD

Experience

Dr Bye has more than 20 years' experience in senior operational and strategic roles in the resources industry working in 15 countries covering 9 commodities. Dr Bye has a mining operational background and has a PhD in mining engineering and is a fellow of the Academy of Technology Science and Engineering (FTSE). He was most recently Vice President Technology at BHP and in his global role he was accountable for execution of major innovation programs across five commodity value chains covering both digital and extractive technologies. Dr Bye was appointed as a Director of the Company in October 2020.

Interest in shares and options at the date of this report

Directorships held in other listed entities during the three years prior to the current year

3,109,926 Performance Rights

Swick Mining Services Ltd (November 2019 - February 2022)

Brett Giroud

Managing director

Qualifications

B.Eng (Computer Systems) Hons, MBA

Experience

Mr Giroud is an engineering executive and technology industry leader with over 24 years of corporate leadership and engineering consulting experience. He was the former APAC head of Strategy and Transaction Services for Worley (Advisian), and former Chief Engineer for Jacobs Engineering (Information and Communications Technology), where he created and lead a group of over 100 systems engineering and technology professionals. Mr Giroud has initiated and led business units and large-scale teams and been directly responsible for safely delivering, more than $250m of complex disruptive technology projects for Tier-1 clients across a portfolio of more than $15B of major growth projects. Mr Giroud has worked across Australia, Europe, and the Middle East and has extensive experience across the entire engineering and technology lifecycle from concept and design, through studies and major project delivery, into construction and leadership positions across site commissioning activities. As a prior visiting guest lecturer at the University of Western Australia across functional safety and advanced systems, and an independent advisor to emerging technology companies, Mr Giroud is experienced at early-stage technology ventures and commercialisation. Mr Giroud was appointed as a director of the Company in July 2021.

Interest in shares and options at the date of this report

Directorships held in other listed entities during the three years prior to the current year

5,183,210 Performance Rights

Nil