Investor Presentaiton
Armour Energy and controlled entities
armourenergy.com.au
Directors' report continued
for the year ended 30 June 2020
REMUNERATION REPORT (AUDITED) CONTINUED
PERFORMANCE SHARE HOLDINGS CONTINUED
Details of all performance shareholdings in Armour Energy Ltd as of 30 June 2020 held by Key Management Personnel is set out
below. The performance shares carry no dividend or voting rights. See page 34 above for conditions that must be satisfied for the
performance shares to vest.
OTHER TRANSACTIONS WITH KEY MANAGEMENT PERSONNEL AND THEIR RELATED
PARTIES
Company debt instruments held by key management personnel
There were no convertible notes held by key management personnel on 30 June 2020.
The early redemption of all existing Convertible Notes on issue on 29 March 2019 was repaid through a refinancing transaction
involving the issue of the $55 million new Secured Partially Amortising Notes, some of which were subscribed for by key
management personnel, as set out below.
When exercisable, each performance share is convertible into one ordinary share of Armour Energy Limited. If an executive ceases
employment before the shares vest, the shares will be forfeited.
Balance at the
start of the year
Received as part
of remuneration
Additions Disposals / other
Balance at the
end of the year
Directors/ Key
Balance at
management
1 Jul 2019
Granted as
remuneration
Performance
shares
exercised
Balance at
30 Jun 2020
Total
vested
Total
vested and
exercisable
Total
unvested
Corporate bond holdings
Stephen Bizzell
100
100
and un-
وی
personnel
B Lingo
7,200,000
7,200,000
7,200,000
7,200,000
exercisable
7,200,000
7,200,000
Corporate bond payments
Stephen Bizzell
Interest
$
Principal
$
10,828
7,000
Additionals /
disposals
Total paid during
$
2020
$
17,828
GROUP PERFORMANCE AND LINK TO REMUNERATION
During the financial year, Armour has generated losses as its principal activity was the discovery and production of world class oil
and gas assets, as well as exploration for economically viable reserves of both conventional and unconventional natural oil and gas.
Armour Energy Limited listed on the ASX on 26 April 2012. The closing share price as of 30 June 2020 was $0.02.
The earnings of Armour for the five years to 30 June 2020 are summarised below:
Bizzell Capital Partners Pty Ltd
Mr Stephen Bizzell (a Director), is the Chairman of boutique corporate advisory and funds management group Bizzell Capital
Partners Pty Ltd.
Armour entered into an agreement with Bizzell Capital Partners Pty Ltd as Lead Manager for the capital raising program detailed in
an ASX announcement on 23 September 2019.
ப
2020
$
2019
2018
2017
$
$
$
Sales revenue
Profit (loss) after income tax
21,103,928
(9,570,776)
27,819,335
(11,683,748)
14,748,819
(12,198,333)
572,600
(11,474,692)
2016
$
153,569
(18,873,927)
Armour was in the exploration and development stage up until the 2018 financial year and as such, the link between remuneration,
Group performance and shareholder wealth was tenuous. Share prices are subject to the influence of oil and gas prices and
market sentiment toward the sector, and as such increases or decreases may occur quite independent of Executive performance or
remuneration.
Armour is currently in the production and development stage, therefore the link between Group performance and shareholder
wealth should be more strongly linked in future years.
The factors that are considered to affect total shareholders return ('TSR') are summarised below:
On 23 September 2019, Armour Energy completed a private placement which raised gross proceeds of $4 million via the allotment
of 80 million shares, with attached unlisted options. Bizzell Capital Partners managed the private placement and was paid a capital
raising fee of $240,000 (net of GST) on arm's length terms.
Bizzell Capital Partners was also entitled to receive an allotment of 8 million unlisted options exercisable at 8 cents through to 30
September 2023. Of the 8 million, 2 million were subsequently transferred to an unrelated sub-underwriter. This transaction was
approved by shareholders at the company's AGM on 26 November 2019.
In an ASX announcement on 15 June 2020, Armour entered into an agreement with Bizzell Capital Partners Pty Ltd and JB Advisory
as Joint Lead Managers for the capital raising program. Armour announced a further capital raising program comprising a
Placement and an Entitlement Offer, with the Entitlement Offer being fully underwritten by Bizzell Capital Partners.
During the year ended 30 June 2020, Armour also paid Bizzell Capital Partners $22,687 under the Underwriting Agreement, and
$73,352 in relation to the allotment of Placement Shares on 23 June 2020.
38
Share price at financial year end (cents)
2020
2.0
2019
6.7
2018
8.9
2017
2016
7.9
6.0
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