Audited 2020 Annual Report - Directors Report

For the year ended 30 June 2020

The directors of Oilex Ltd present their report (including the Remuneration Report) together with the consolidated financial statements of the Group comprising of Oilex Ltd (the Company) and its subsidiaries for the financial year ended 30 June 2020 and the auditors' report thereon.

DIRECTORS

The directors of Oilex Ltd in office at any time during or since the end of the financial year are:

Mr Jonathan Salomon

(Interim Chairman and Managing Director)

B App Sc (Geology), GAICD

Mr Salomon was appointed as a Non-Executive Director in November 2015, Managing Director on 18 March 2016, and Interim Chairman on 5 May 2020 following the resignation of Mr Lingo.   Mr Salomon has over 34 years of experience working for upstream energy companies. Further details of Mr Salomon's qualifications and experience can be found in the Executive Management section of the Directors' Report.

During the last three financial years Mr Salomon has not been a director of any other ASX listed companies.

Mr Bradley Lingo (resigned 5 May 2020)

(Non-Executive Chairman)

Bachelor of Arts with Honours, Juris Doctorate, MAICD

Mr Lingo was appointed as a Non-Executive Director in February 2016 and Non-Executive Chairman in February 2017. Mr Lingo has more than 34 years of experience in a diverse range of oil and gas leadership roles, including business development, new ventures, mergers and acquisitions and corporate finance. Mr Lingo has worked with Tenneco Energy and El Paso Corporation in the US and Australia, Sunshine Gas Limited, AGL Energy, Roc Oil Limited, the Commonwealth Bank of Australia, Drillsearch Energy Limited and Elk Petroleum Limited.

During the last three financial years up to his resignation on 5 May 2020, Mr Lingo has been a director of the following ASX listed companies:

·    Elk Petroleum Limited (from August 2015 to March 2019)

Mr Mark Bolton (appointed 26 March 2020)

(Executive Director and Company Secretary)

Mr Bolton was appointed as an Executive Director on 26 March 2020.  Mr Bolton has significant experience in the development and financing of new minerals projects, particularly in emerging economies. Further details of Mr Bolton's qualifications and experience can be found in the Executive Management section of the Directors' Report.

During the last three years Mr Bolton has not been a director of any other ASX listed company.

Mr Paul Haywood

(Non-Executive Director)

Mr Haywood was appointed as a Non-Executive Director in May 2017. Mr Haywood has over 16 years of international experience in delivering value for his investment network through a blended skill set of corporate and operational experience, including more than six years in the Middle East, building early stage and growth projects. More recently, Mr Haywood has held senior management positions with UK and Australian public companies in the natural resource and energy sectors including oil and gas exploration and development in UK, EU and Central Asia. Mr Haywood's expertise stretches across UK and Australian public markets, with a cross-functional skill set encompassing research, strategy, implementation, capital and transactional management. Mr Haywood is currently Chief Executive Officer of Block Energy Plc.

During the last three years Mr Haywood has not been a director of any other ASX listed companies.

Mr Peter Schwarz (appointed 4 September 2019)

(Non-Executive Director)

B Sc (Geology), M Sc (Petroleum Geology)

Mr Schwarz was appointed as a Non-Executive Director in September 2019.  A former director of BG Exploration and Production Limited and CEO of independent exploration company Virgo Energy Ltd, Peter is an AAPG Certified Petroleum Geologist and business development professional with over 40 years' experience in the oil and gas industry. Peter has previously held various senior management roles with Amerada Hess, BG, and Marubeni and is currently a director of Finite Energy Limited, an oil and gas consultancy business he founded over 10 years ago, specialising in strategy and business development advice in the UK and Europe.

During the last three years Mr Schwarz has not been a director of any other ASX listed companies.

COMPANY SECRETARY

The Executive Director, Mr Mark Bolton (B Bus) was appointed Company Secretary in June 2016.

CORPORATE GOVERNANCE STATEMENT

The Corporate Governance Statement, which reports on Oilex's key governance principles and practices is available on the Oilex website. 

In establishing its corporate governance framework, the Company has referred to the recommendations set out in the ASX Corporate Governance Council's Corporate Governance Principles and Recommendations 3^rd edition. The Company has not early adopted the 4^th edition of the ASX Corporate Governance Council's Corporate Governance Principles and Recommendations which come into effect for the Company's financial year commencing 1 July 2020.

The Company has followed each recommendation where the Board has considered the recommendation to be an appropriate benchmark for its corporate governance practices. Where the Company's corporate governance practices follow a recommendation, the Board has made appropriate statements reporting on the adoption of the recommendation. In compliance with the "if not, why not" reporting regime, where, after due consideration, the Company's corporate governance practices do not follow a recommendation, the Board has explained its reasons for not following the recommendation and disclosed what, if any, alternative practices the Company has adopted instead of those in the recommendation.

The Corporate Governance Statement provides detailed information on the Board and committee structure, diversity and risk management.

DIRECTORS' MEETINGS

Directors in office and directors' attendance at meetings during the 2019/20 financial year are as follows:

	Board Meetings (1)
	Held (2)	Attended
Non-Executive Directors
B Lingo (3)	10	10
P Haywood	12	12
P Schwarz (5)	10	10
Executive Director
J Salomon (4)	12	12
M Bolton (5)	3	3

⁽¹⁾        Following the changes to the Board at the Annual General Meeting on 25 November 2015, the Board resolved that the full Board would perform the role of the Audit and Risk Committee and the Remuneration and Nomination Committee. The Company is considering the appointment of additional independent non-executive directors in order to achieve best practice corporate governance and may reconstitute the Committees at that time.

⁽²⁾        Held indicates the number of meetings available for attendance by the director during the tenure of each director.

⁽³⁾        Mr Lingo was Chairman until his resigned from the board on 5 May 2020.

⁽⁴⁾        Current Chairman from 5 May 2020 following Mr Lingo's resignation.

⁽⁵⁾        Mr Schwarz and Mr Bolton were appointed to the board on 4 September 2019 and 26 March 2020, respectively.

 

EXECUTIVE MANAGEMENT

Mr Jonathan Salomon

(Interim Chairman and Managing Director)

B App Sc (Geology), GAICD

Mr Salomon was appointed as a Non-Executive Director in November 2015, Managing Director on 18 March 2016, and Interim Chairman on 5 May 2020.  Mr Salomon has a Bachelor Degree in Applied Science and is a member of the American Association of Petroleum Geologists and the Society of Petroleum Engineers, and has over 34 years of experience working for upstream energy companies. Mr Salomon has worked for a number of oil and gas companies in various senior positions including General Manager Exploration and New Ventures at Murphy Oil Corporation and Global Head of Geoscience at RISC PL, in addition to a number of Executive Director roles including Strategic Energy Resources, Norwest Energy and Nido Petroleum. At several times in his career, Mr Salomon has acted as an independent consultant for various oil and gas companies, including New Standard Energy and Pacrim Energy. Mr Salomon first worked on Indian projects in 1994 while at Ampolex and since that time has maintained connection with the Indian industry, at various times bidding in India's exploration and field development rounds and working with Indian companies as joint venture partners, both in India and internationally.

Mr Mark Bolton

(Executive Director and Company Secretary)

B Business

Mr Bolton was appointed Chief Financial Officer and Company Secretary in June 2016, and Executive Director on 26 March 2020. He has significant experience in the resource sector in Australia, having worked as Chief Financial Officer and Company Secretary for a number of resource companies since 2003. Prior to this, Mr Bolton worked with Ernst & Young as an Executive Director in Corporate Finance. Mr Bolton has experience in the areas of commercial management and the financing of resource projects internationally. He also has extensive experience in capital and equity markets in a number of jurisdictions including ASX, AIM and the TSX. 

Mr Ashish Khare

(Head - India Assets)
Bachelor of Engineering (BE in Chemical Engineering, including petroleum management)

Mr Khare was appointed Head - India Assets on 8 November 2016 and is based in Gandhinagar India and has over 19 years of experience in the petroleum industry. Mr Khare's area of expertise include upstream oil and gas, as well as midstream and downstream project implementation and operations management. Mr Khare originally worked for Oilex as GM Operations & Business Development, and has experience working for various Indian companies including Cairn India Ltd and Reliance Petroleum.

PRINCIPAL ACTIVITIES

The principal activities of the consolidated entity during the financial year included:

·        exploration for oil and gas;

·        appraisal and development of oil and gas prospects; and

·        production and sale of oil and gas.

There were no significant changes in the nature of the activities during the year.

OPERATING RESULTS

The loss after income tax of the consolidated entity for the year ended 30 June 2020 amounted to $5,841,096 (2019: loss of $3,118,121).

Following the voluntary shut-in of the Cambay Field in Q1 2019 resulting in the cessation of production, no revenue has been recognised during the full financial year.

In the absence of a repayment schedule for outstanding cash calls from Gujarat State Petroleum Corporation (GSPC), the Company has continued to provide in full the amounts owing from its Joint Venture partner as well as amounts owing from the Cambay and Bhandut Joint Ventures, with the exception of a US$110,000 (A$163,836) Cambay cash call payment received subsequent to reporting date.

In addition to the above expected cash payment, a reduction in Joint Venture cash call and recharges since 30 June 2019 has resulted in a reversal in the provision for doubtful debts related to Cambay and Bhandut cash calls and recharges of $226,108.  This reversal has been partially offset by a provision for doubtful debts expense of $94,794 required for the Group's share of JPDA JV cash call receivables, and other receivables of $24,001.  As a result, operating results include a credit to the provision for doubtful debts expense of $107,313 (2019: $108,206 expense). 

 

 

OPERATING RESULTS (continued)

Exploration costs have increased to $1,008,719 (2019: $491,675) reflecting the increased activity in seeking and evaluating new business opportunities.

Other costs $1,270,152 (2019: Cost of sales $504,926) includes an increase in write-down of inventory to net realisable values of $1,030,060 (2019: $161,354).

The prior year results included a reduction in variable operating expenses as part of Group's effort to reduce costs.  In the current year, efforts to contain costs have continued with further reductions in administration employee expenses $718,210 (2019: $819,627).  Total administration expenses of $2,015,477 (2019: $1,957,850) include the above-mentioned reduction in employee expenses; however, this has been offset by increased legal expenses related to the Cambay PSC.

The impact of Covid-19, which has seen reduced global demand for energy products and caused delays to the implementation of the dispute resolution with GSPC. Consequently an impairment charge of $1,348,458 (2019: nil) has been applied to the Cambay Field development assets. 

Other expenses $336,921 (2019: $40,990) have increased as a result of the termination penalty provision (non-cash) in relation to JPDA 06-103 PSC (refer Note 27) increasing from USD$600,000 to USD$800,000; resulting in a termination penalty provision expense of $297,885 (USD$200,000) (2019: $nil).

The impact of the Coronavirus (COVID-19) up to 30 June 2020 has been financially negative for the consolidated entity. This is largely due to its general impact in India where significant delays have been experienced with the sale process being conducted by GSPC for its' 55% interest in the Cambay Production Sharing Contract (PSC).  As a result, Indian operations have continued to be maintained on a 'care and maintenance' basis for a longer period than originally anticipated.

Cash and cash equivalents held by the Group as at 30 June 2020 has decreased to $173,816 (2019: $357,970).

FINANCIAL POSITION

The net assets of the consolidated entity totalled $3,719,824 as at 30 June 2019 (2019: $6,739,041).

DIVIDENDS

No dividend was paid or declared during the year and the directors do not recommend the payment of a dividend.

REVIEW OF OPERATIONS

A review of the operations of the Group during the financial year and the results of those operations are set out in the Review of Operations on pages 4 to 10 of this report.

SIGNIFICANT CHANGES IN THE STATE OF AFFAIRS

The Review of Operations details those changes that have had a significant effect on the Group. 

Other than those matters, there have been no other significant changes in the state of affairs of the Group that occurred during the financial year.

LIKELY DEVELOPMENTS

Additional comments on expected results on operations of the Group are included in the Review of Operations on pages 4 to 10.

Further disclosure as to likely developments in the operations of the Group and expected results of those operations have not been included in this report as, in the opinion of the Board, these would be speculative and as such, disclosure would not be in the best interests of the Group.

ENVIRONMENTAL ISSUES

The Group's oil and gas exploration and production activities are subject to environmental regulation under the legislation of the respective states and countries in which they operate. The majority of the Group's activities involve low level disturbance associated with its drilling programmes and production from existing wells. The Board actively monitors compliance with these regulations and as at the date of this report is not aware of any material breaches in respect of these regulations.

 

 

SIGNIFICANT EVENTS AFTER BALANCE DATE

a)        The impact of the Coronavirus (COVID-19) pandemic is ongoing and while it has been financially negative for the consolidated entity up to 30 June 2020, it is not practicable to estimate the potential impact, positive or negative, after the reporting date. The situation is rapidly developing and is dependent on measures imposed by the Australian and Indian Governments and other countries, such as maintaining social distancing requirements, quarantine, travel restrictions and any economic stimulus that may be provided.

b)        On 17 July 2020, the Company announced it has issued the second and final tranche of 55,555,556 ordinary shares pursuant to the placement first announced on 16 March 2020; and amended as announced on 27 April 2020. The share issue was pursuant to an equity capital raising to secure further funding of £0.25 million (A$0.5 million) through the subscription of 277,777,778 new shares at £0.009 per share (0.1792 AUD cents) per share. 

The Company also announced:

·      the issue of 103,033,333 shares to advisors and consultants in lieu of cash fees payable; and

·      further to the approval by shareholders at the annual general meeting held on 30 June 2020 and the Company announcement on 15 May 2020, the Company issued the following unlisted options:

-       Series B Loan Options                     115,727,273 exercisable at £0.0011 on or before 31 July 2020

-       Series D Loan Options                     204,545,455 exercisable at £0.0011 on or before 30 June 2021.

c)        On 27 July 2020, the Company announced that substantial progress has been made towards the Company's strategic objective to regain a participating interest in the West Kampar PSC in Indonesia, which is expected to lead, subject to financing, to recommencing production from the Pendalian Oilfield.

Following various meetings and correspondence with the Government of Indonesia (GoI) and with the support of the Company's local Indonesian partner, the GoI has advised that our Proposed Direct Bid, through the Joint Study of the West Kampar Region, is declared administratively complete and have recorded it as a proposal for a Direct Offer through a Joint Study as stipulated in ESDM Regulation No. 35 of 2008. 

This confirmation from the GoI, which is exclusive to Oilex, provides a pathway to conduct the Joint Study on the proposed development of West Kampar which will then provide certain preferential rights in the ultimate award of the West Kampar PSC by the GoI.  Oilex's interest in the study and ultimate potential award of the PSC will be on a 50-50 joint basis with its local Indonesian partner, PT Ephindo.

d)        On 31 July 2020, the Company announced that it has taken further steps to strengthen its balance sheet as the Company continues to navigate the impact of Covid-19 on its business and global equity markets.  In particular, the Company entered into an amendment agreement to vary the repayment obligations for its Series C (GBP£125,000) loan.  Furthermore, the Company secured additional equity investment of £0.25 million to increase its working capital flexibility and reduce its financial debt obligations.

Amendment to Series C Loan Funding Agreement (GBP £125,000)

Pursuant to the amendment agreement, the loan repayment date has been extended from 1 August 2020 to 31 October 2020.  All other terms remain the same and are extended to 31 October 2020, except for the issue of 113,636,364 new options exercisable at £0.0011 on or before 29 January 2021.

The options, which if exercised in their entirety, will result in a cash inflow to the Company of £125,000 (A$224,901).  The proceeds from such conversion of options will be applied to the outstanding Series C Loan balance, which is fully drawn down.

The issue of the new options is subject to shareholder approval under ASX Listing Rule 7.1 on or before 30 November 2020. Failure to secure shareholder approval will require immediate repayment of the loan principal and accrued interest.

Equity Capital Raising

The Company has arranged an equity capital raising, through Novum Securities Limited and to existing institutional shareholders, to secure further funding of £0.25 million (A$0.5 million) through the subscription of 312,500,000 new shares at GBP 0.08 pence (0.144 AUD cents) per share.

 

 

SIGNIFICANT EVENTS AFTER BALANCE DATE (continued)

Funds raised from the subscription are intended to be applied towards increasing the Company's working capital base and debt reduction  The additional funding will support the Company's initiative to implement the settlement with GSPC, which has been delayed by the impact from Covid-19. 

On 10 August 2020, the Company announced that it has issued the 312,500,000 shares.  Pursuant to advisory agreements with Novum, the Company also issued 15,000,000 unlisted options exercisable at GBP 0.08 pence on or before 12 August 2022 upon the completion of the capital raise.

e)        On 7 August 2020, the Company, in its capacity as Operator, on behalf of the Joint Venture Participants in Joint Petroleum Development Area ("JPDA") 06-103 Production Sharing Contract ("PSC") in East Timor announced it had executed a Deed of Settlement and Release (Deed) with the Autoridade Nacional Do Petroleo E Minerais ("ANPM") to terminate the ongoing arbitration proceedings arising from the termination of the PSC by the ANPM in 2015 and settle all claims and counterclaims between the parties.

The execution of the Deed sees an amicable conclusion to the arbitration proceedings, as announced in October 2018, where Oilex and its joint venture partners in the PSC were subject to a penalty claim of US$17 million (plus interest) on a joint and several basis.  Oilex is the Operator of the PSC on behalf of the joint venture.

Under the terms of the Deed, Oilex has committed to a settlement of US$800,000 payable in the 2021 and 2022 financial years, which has been fully provided for at 30 June 2020.  In addition, the Company has entered into an unsecured loan facility agreement for US$800,000 with two of its joint venture partners to fund the settlement. The Deed  further provides the Company with the option, at its sole discretion, to extend the settlement payments into the 2023-24 financial year.  Reference is made to Note 14 for further detail on this loan facility.

f)         On 14 September 2020, the Company announced that it has agreed to amend the Share Purchase Agreement (SPA) with Armour Energy Limited (Armour), as announced on 15 June 2020, for the proposed sale of all of its interests in the Cooper-Eromanga Basin (Proposed Transaction). Pursuant to the SPA, Armour will acquire 100% of the issued capital of CoEra Limited (CoEra), a wholly owned Company subsidiary which holds all of Oilex's interests in the Cooper-Eromanga Basin.

The amendments:

·      extend the completion date from 15 September 2020 until 15 October 2020 to enable Armour to seek its shareholder approval pursuant to ASX Listing Rule 7, with such shareholder meeting scheduled for 18 September 2020, and allow additional time to satisfy the Conditions Precedent.  Armour received shareholder approval for the transaction at its 18 September 2020 General Meeting;

·      amend the date upon which Armour pays to Oilex the past costs of $125,000 to within 5 Business Days after receipt of Armour's above shareholder approval.  Oilex received these funds in late September 2020; and

·      reduce the timeframe for the Tranche 2 share adjustment from 90 days to 60 days from completion.

On 15 October 2020, the Company announced the completion of the sale of all its interests in the Cooper-Eromanga Basins to Armour Energy Limited.

g)        Pursuant to an amendment agreement to the Series C loan of GBP£125,000 loan announced on 30 October 2020, the loan repayment date has been extended from 31 October 2020 to 31 December 2020.  All other terms remain the same and are extended to 31 December 2020.

There were no other significant subsequent events occurring after year end.

 

FINANCIAL POSITION

Capital Structure and Treasury Policy

As at 30 June 2020 the Group had unsecured loans at face value $804,959 (2019: $580,000).  Refer note 15 of the Consolidated Financial Statements for details of the carrying amount, terms and conditions, repayment schedule, and options attached to the loans. 

Details of transactions involving ordinary shares during the financial year are as follows:

	Number of Shares Issued	Value of Shares $	Gross Amount Raised $
August 2019 -       Share Placements	257,329,999	-	597,488
August 2019 -       Acquisition of Petroleum Exploration Licences	33,416,483	100,249	-
October 2019 -       Share Placements	315,789,474	-	1,104,865
October 2019 -       Acquisition of Petroleum Exploration Licences	29,457,413	94,750	-
November 2019 -       Non-executive Director Remuneration	78,947,368	-	282,255
January 2020 -       Share Placements (exercise/underwriting of options)	124,060,150	-	330,000
May 2020 -       Share Placements	222,222,222	-	380,680
Total	1,061,223,109	194,999	2,695,288

 

In accordance with the ASX Waiver granted 22 October 2019 the Company advises that the number of remuneration shares that were issued to non-executive directors totalled nil. This represents 0.00% of the Company's issued capital as at 30 June 2020. 

The non-executive directors were entitled to the issue of 10,399,814 remuneration shares (representing part payment of director's fees) during the financial year ended 30 June 2020.  These remuneration shares shall be issued in the next financial period.

As at the date of this report the Company had a total issued capital of 4,119,629,999 ordinary shares and 241,014,753 unlisted options exercisable at weighted average price of $0.002 per share.

 

FINANCIAL POSITION (CONTINUED)

Material Uncertainty Related to Going Concern

The financial report and audit opinion for the year ended 30 June 2020 identifies a material uncertainty regarding continuation as a going concern. The consolidated financial statements have been prepared on a going concern basis, which contemplates the realisation of assets and settlement of liabilities in the normal course of business. The Group will require funding in order to continue its exploration activities and progress the Cambay Project.

The funding requirements of the Group are reviewed on a regular basis by the Group's Executive Director and Company Secretary, and Managing Director and are reported to the Board at each board meeting to ensure the Group is able to meet its financial obligations as and when they fall due. Until sufficient operating cash flows are generated from its operations, the Group remains reliant on joint venture contributions, equity raisings or debt funding, as well as asset divestitures or farmouts to fund its expenditure commitments.

The Company continues to actively develop funding options in order that it can meet its expenditure commitments and its planned future discretionary expenditure, as well as any contingent liabilities that may arise.

DIRECTORS' INTERESTS

The relevant interest of each director in shares and unlisted options issued by the Company, as notified by the directors to the ASX in accordance with Section 205G (1) of the Corporations Act 2001, at the date of this report is as follows:

 

	Number of Ordinary Shares
	Direct	Indirect
J Salomon	-	14,987,013
M Bolton	-	-
P Haywood	3,319,101	-
P Schwarz	-	-

SHARE OPTIONS

Unissued shares under options

All options were granted in the current and previous financial years.

At the date of this report, unissued ordinary shares of the Company under option (with an exercise price) are:

 

Expiry Date	Number of Shares	Exercise Price
Unlisted Options
Issued in 2020:
30 June 2021	204,545,455 (1)	£0.0011 ($0.002)
20 October 2021	14,802,631	£0.0019 ($0.004)
12 August 2022	15,000,000	£0.0008 ($0.001)
Issued in previous financial years:
24 December 2020	6,666,667	£0.0036 ($0.006)
Total	241,014,753

⁽¹⁾          Issued in connection to Series D unsecured loans.  Refer note 15 of the Consolidated Financial Statements for further detail. 

These options do not entitle the holder to participate in any share issue of the Company or any other body corporate.

Unissued shares under option that expired during the year 

During the financial year, the following unlisted options expired or were cancelled upon cessation of employment:

Date Lapsed	Number	Exercise Price
22 May 2020	2,222,222	$0.004
26 July 2019	91,666,666	$0.004
1 October 2019	60,664,887	$0.004
1 April 2020	60,664,887	$0.004
Total	215,218,662

SHARE OPTIONS (continued)

Shares issued on exercise of unlisted options

During or since the end of the financial year, the Company issued ordinary shares as a result of the exercise of unlisted options as follows (there were no amounts unpaid on the shares issued):

	Number of Shares	Amount Paid on Each Share
During the financial year	124,060,150	$0.003
Total	124,060,150	$0.003
Since the end of the financial year	-

 

INDEMNIFICATION AND INSURANCE OF DIRECTORS AND OFFICERS

The Group paid a premium in respect of insurance cover for the directors and officers of the Group. The Group has not included details of the nature of the liabilities covered or the amount of the premium paid in respect of the directors' liability and legal expense insurance contracts, as such disclosure is prohibited under the terms of the insurance contract.

PROCEEDINGS ON BEHALF OF THE COMPANY

No proceedings have been brought on behalf of the Company, nor has any application been made in respect of the Company under Section 237 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 Group is important.

The Board has considered the non-audit services provided during the year and is satisfied that the provision of the non-audit services is compatible with, and did not compromise, 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 auditor, as set out below, did not compromise the auditor independence requirements of the Corporations Act 2001 for the following reasons:

·     all non-audit services were subject to the corporate governance procedures adopted by the Group and these have been reviewed by the Board to ensure they do not impact the impartiality and objectivity of the auditor; and

·     the non-audit services provided do not undermine the general principles relating to auditor independence as set out in APES 110 Code of Ethics for Professional Accountants, as they did not involve reviewing or auditing the auditor's own work, acting in a management or decision-making capacity for the Group, acting as an advocate for the Group or jointly sharing risks and rewards.

Refer note 26 of the Consolidated Financial Statements for details of the amounts paid to the auditors of the Group, PKF Perth and KPMG Perth, and their network firms for audit and non-audit services provided during the year.

rounding of Amounts

The Company is a company of the kind referred to in ASIC Corporations (Rounding in Financial/Directors' Reports) Instrument 2016/191 and therefore the amounts contained in this report and in the financial report have been rounded to the nearest dollar, unless otherwise stated.

LEAD AUDITOR'S INDEPENDENCE DECLARATION

The Lead Auditor's Independence Declaration for the year ended 30 June 2020 has been received and can be found on page 30.