REG - Neometals Ltd - Annual Financial Report
26/09/2024 09:01
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RNS Number : 7959F Neometals Ltd 26 September 2024
26 September 2024
Neometals Ltd
("Neometals" or "the Company")
Annual Financial Report
for the financial year ended 30 June 2024
Sustainable process technology developer, Neometals Ltd (ASX: NMT & AIM:
NMT) ("Neometals" or "the Company") advises that a copy of the Company's
Annual Report for the year ended 30 June 2024 (the "Annual Report") has been
lodged on the ASX along with the Company's 2024 year-end Corporate Governance
Statement and Appendix 4G.
Also, set out below is a summary of the Company's audited financial
information for the year ended 30 June 2024 as extracted from the Annual
Report, being:
· Consolidated Statement of Comprehensive Income;
· Consolidated Statement of Financial Position;
· Consolidated Statement of Changes in Equity;
· Consolidated Statement of Cash Flows; and
· Notes to the consolidated financial statements.
ENDS
For more information, please contact:
Neometals Ltd
Chris Reed, Managing Director & Chief Executive Officer +61 8 9322 1182
Jeremy McManus, General Manager - IP & IR +61 8 9322 1182
Cavendish Capital Markets Ltd - NOMAD & Broker
Neil McDonald +44 (0)131 220 9771
Peter Lynch +44 (0)131 220 9772
Adam Rae +44 (0)131 220 9778
About Neometals
Neometals facilitates sustainable critical material supply chains and reduces
the environmental burden of traditional mining in the global transition to a
circular economy.
The Company is commercialising a portfolio of sustainable processing solutions
that recycle and recover critical materials from high-value waste streams.
· Neometals' core focus is its patented, Lithium-ion Battery
("LiB") Recycling technology (50% NMT), being commercialised in a 50:50
incorporated JV (Primobius GmbH) with 150-year-old German plant builder, SMS
group GmbH. Primobius is supplying Mercedes-Benz a 2,500tpa recycling plant
and operates its own LiB Disposal Service in Germany. Primobius' first
21,000tpa commercial plant will be offered to Stelco under an existing
technology licence for North America.
Neometals is developing two advanced battery materials technologies for
commercialisation under low-risk, low-capex technology licensing business
models:
· Lithium Chemicals (70% NMT) - Patented ELi™ electrolysis
process, co-owned 30% by Mineral Resources Ltd, to produce battery quality
lithium hydroxide from brine and/or hard-rock feedstocks at lowest quartile
operating costs. Pilot scale test work and Engineering Cost Study update
planned for completion in DecQ 2024; and
· Vanadium Recovery (100% NMT) - Patent pending hydrometallurgical
process to produce high-purity vanadium pentoxide from steelmaking by-product
("Slag") at lowest-quartile operating cost and carbon footprint.
For further information, visit: www.neometals.com.au
(https://www.neometals.com.au/) .
Consolidated statement of profit or loss and other comprehensive income
for the year ended 30 June 2024
Note 2024 2023
$ $
(Re-presented*)
Continuing operations
Interest and other income 5(a) 544,119 1,061,585
Employee expenses 5(b) (7,900,995) (11,155,009)
Occupancy expenses (209,279) (177,323)
Finance costs (102,305) (26,007)
Other expenses 5(b) (7,840,342) (10,392,034)
Marketing expenses (216,297) (442,359)
Foreign exchange (loss)/gain (162,029) 61,466
Impairment expense 5(b) (12,820,053) (3,989,748)
Fair value adjustment of non-listed investments 11 (721,200)
Share of loss in associate 22 (438,965) (3,412,514)
Share of loss in joint ventures 21(ii, iii and iv) (8,616,266) (7,298,801)
Loss on disposal of subsidiary 21(iv) - (212,473)
Loss before income tax (38,483,612) (35,983,217)
Income tax benefit 7 316,580 1,374,655
Loss for the year from continuing operations (38,167,032) (34,608,562)
Discontinued operations
Loss for the year from discontinuing operations 6 (30,945,885) (195,807)
(Loss)/profit for the year from continuing and discontinuing operations (69,112,917) (34,804,369)
Other comprehensive income - -
Total comprehensive (loss)/profit for the year (69,112,917) (34,804,369)
Loss per share
From continuing operations:
Basic (cents per share) 18 (6.43) (6.27)
Diluted (cents per share) 18 (6.43) (6.27)
From continuing and discontinued operations:
Basic (cents per share) 18 (11.65) (6.30)
Diluted (cents per share) 18 (11.65) (6.30)
The consolidated statement of profit or loss and other comprehensive income
should be read in conjunction with the accompanying notes.*Refer to note 6 for
details of re-presentation.
Consolidated statement of financial position as at 30 June 2024
Note 2024 2023
$ $
Current assets
Cash and cash equivalents 27 (a) 9,103,833 24,438,695
Trade and other receivables 10 967,858 2,031,604
Other financial assets 11 543,089 763,650
Total current ordinary assets 10,614,780 27,233,949
Assets classified as held for sale 6 20,214,451 -
Total current assets 30,829,231 27,233,949
Non-current assets
Exploration and evaluation expenditure 12 - 47,364,711
Intangibles 285,318 945,994
Investments in joint ventures 21 2,736,164 5,449,045
Investment in associate 22 2,639,437 9,677,933
Other financial assets 11 4,813,803 5,298,971
Right of use assets 20 409,026 895,690
Property, plant and equipment 13 421,485 877,269
Total non-current assets 11,305,233 70,509,613
Total assets 42,134,464 97,743,562
Current liabilities
Trade and other payables 14 340,789 2,190,866
Provisions 15 954,044 1,021,613
Lease liability 20 128,296 285,625
Liabilities associated with the assets classified as held for sale 6 214,451 -
Total current liabilities 1,637,580 3,498,104
Non-current liabilities
Provisions 15 39,132 72,685
Lease liability 20 3,982,625 652,049
Total non-current liabilities 4,021,757 724,734
Total liabilities 5,659,337 4,222,838
Net assets 36,475,127 93,520,724
Equity
Issued capital 16 158,706,319 146,234,171
Reserves 17 2,290,951 10,835,122
Accumulated losses (124,522,143) (63,548,569)
Total equity 36,475,127 93,520,724
This consolidated statement of financial position should be read in
conjunction with the accompanying notes.
Consolidated statement of changes in equity
for the year ended 30 June 2024
Issued Investment revaluation reserve Other Share Accumulated Total
Capital $ equity based losses $
$ reserve payments $
$ reserve
$
Balance at 30/06/22 145,564,286 1,019,637 300,349 8,455,957 (28,744,200) 126,596,029
Loss for the period - - - - (34,804,369) (34,804,369)
Total comprehensive income for the period - - - - (34,804,369) (34,804,369)
Recognition of share-based payments (see note 9 and 17) - - - 1,747,438 - 1,747,438
Recognition of shares issued under performance rights plan 688,259 - - (688,259) - -
Share issue costs, net of tax (18,374) - - - - (18,374)
Balance at 30/06/23 146,234,171 1,019,637 300,349 9,515,136 (63,548,569) 93,520,724
Loss for the period - - - - (69,112,917) (69,112,917)
Total comprehensive income for the period - - - - (69,112,917) (69,112,917)
Issue of share capital 12,131,024 - - - - 12,131,024
Recognition of share-based payments (see note 9 and 17) - - - 894,935 - 894,935
Recognition of shares issued under performance rights plan 1,299,763 - - (1,299,763) - -
Share issue costs, net of tax (958,639) - - - - (958,639)
Historical reserve clearing (see note 17) - (1,019,637) (300,349) (6,819,357) 8,139,343 -
Balance at 30/06/24 158,706,319 - - 2,290,951 (124,522,143) 36,475,127
This consolidated statement of changes in equity should be read in conjunction
with the accompanying notes.
Consolidated statement of cash flows for the year ended 30 June 2024
Note 2024 2023
$
$
(Re-presented*)
Cash flows from operating activities
Research and development refund 908,332 -
Payments to suppliers and employees (14,245,712) (20,311,512)
Payments to suppliers - discontinued operations (176,178) (87,030)
Net cash used in operating activities 27 (b) (13,513,558) (20,398,542)
Cash flows from investing activities
Payments for property, plant & equipment (29,914) (135,832)
Payments for property, plant & equipment - discontinued operations (18,830) (299,698)
Payments for intellectual property (96,205) (159,198)
Payments for exploration and evaluation (361,429) (1,437,993)
Payments for exploration and evaluation - discontinued operations (3,495,083) (4,389,397)
Interest received 517,798 1,050,819
Payments for purchase of investments (60,000) (425,838)
Receipts from sale of investments 134,060 1,215,791
Investment in associate - (694,515)
Investment in joint ventures 21 (8,703,799) (9,656,039)
Net cash used in by investing activities (12,113,402) (14,931,900)
Cash flows from financing activities
Share issue costs (958,638) (18,374)
Capital raising proceeds 12,131,024 -
Amounts paid for security deposits (455,707) -
Lease payments (172,780) (287,190)
Lease payments - discontinued operations (114,764) (60,664)
Interest and other finance costs paid (64,530) (26,999)
Net cash generated by / (used in) financing activities 10,364,605 (393,227)
Net (decrease) in cash and cash equivalents (15,262,355) (35,723,669)
Cash and cash equivalents at the beginning of the financial year 24,438,695 60,158,159
Effect of exchange rates on cash balances (48,563) 4,205
Cash and cash equivalents 9,127,777 24,438,695
Less: cash and cash equivalents at the end of the financial year - held for (23,944) -
sale
Cash and cash equivalents at the end of the financial year 27 (a) 9,103,833 24,438,695
This consolidated statement of cash flows should be read in conjunction with
the accompanying notes.
*Refer to note 6 for details of re-presentation
Index to Notes to the consolidated financial statements
Note Contents
1 General information
2 Material accounting policies
3 Critical accounting judgments and key sources of estimation uncertainty
4 Parent entity disclosure
5 Profit / loss for the year continuing operations
6 Discontinued operations
7 Income taxes
8 Key management personnel compensation
9 Share based payments
10 Trade and other receivables
11 Other financial assets
12 Exploration and evaluation expenditure
13 Property, plant and equipment
14 Trade and other payables
15 Provisions
16 Issued capital
17 Reserves
18 Earnings per share
19 Commitments for expenditure
20 Leases
21 Joint arrangements
22 Investment in associates
23 Subsidiaries
24 Segment information
25 Related party disclosures
26 Auditor's remuneration
27 Notes to the statement of cash flows
28 Financial instruments
29 Contingent liabilities
30 Events after the reporting period
1. General information
Neometals Ltd is a limited public company incorporated in Australia and listed
on the Australian Securities Exchange and AIM. The principal activities of the
Consolidated Entity are the development and commercialisation of sustainable
processing solutions that recycle and recover critical materials from
high-value waste streams. Neometals Ltd is the ultimate parent.
Registered office and principal place of business
Level 1, 1292 Hay St, West Perth WA 6005
2. Material accounting policies
Statement of compliance
These financial statements are general purpose financial statements which have
been prepared in accordance with the Corporations Act 2001, Accounting
Standards and Interpretations, and complies with other requirements of the
law. The financial statements comprise the consolidated financial statements
of the Consolidated Entity, comprising Neometals Ltd and its controlled
entities. For the purpose of preparing the financial statements the
consolidated entity is a for-profit entity.
Accounting Standards include Australian Accounting Standards. Compliance with
Australian Accounting Standards ensures that the financial statements and
notes of the Company and the Group comply with International Financial
Reporting Standards ("IFRS").
The financial statements were authorised for issue by the directors of
Neometals Ltd on 26 September 2024.
Basis of preparation
The financial report has been prepared on a going concern basis. These
accounting policies are consistent with Australian Accounting Standards and
with IFRS.
The Group has adopted all of the new and revised Standards and Interpretations
issued by the Australian Accounting Standards Boards ("AASB") that are
relevant to its operations and effective for the current reporting period
beginning 1 July 2023.
The financial report has been prepared on the basis of historical cost except
for the revaluation of certain non-financial assets and financial
instruments. Cost is based on the fair values of the consideration given in
exchange for assets. All amounts are presented in Australian dollars, unless
otherwise noted.
Comparative information
The cashflow in respect of lease payments in the prior year has been
reclassified as a cash outflow from financing activities in the statement of
cashflows to align with the requirements of AASB 107 Statement of Cashflows.
Going concern
The Directors believe that Neometals Ltd will continue as a going concern and
as a result the financial statements have been prepared on the going concern
basis, which contemplates the continuity of normal business activity and the
realisation of assets and the settlement of liabilities in the normal course
of business.
The Group incurred losses after tax from continuing operations of $38,167,032
and losses from discontinuing operations of $30,945,885 (30 June 2023:
$34,608,562 and $195,807 respectively) and experienced net cash outflows from
operating and investing activities of $25,626,960 (30 June 2023: $35,330,442)
for the year ended 30 June 2024. As at 30 June 2024 the Group had cash and
cash equivalents of $9,103,833 (30 June 2023: $24,438,695) and net current
assets of $29,191,651 (30 June 2023: $23,735,845).
During the year ended 30 June 2024, the Group has continued to progress its
strategy of developing a portfolio of sustainable processing solutions that
recycle and recover critical materials from high-value waste streams. Priority
focus has been on advancing the patented Lithium-ion battery recycling
technology in Primobius GmbH (Neometals 50% interest) ("Primobius"). Due to
the early-stage nature of the Group's projects, ongoing capital investment is
necessary to commercialise these technologies.
The directors recognise that additional funding is required to meet the
Group's budgeted ongoing activities. Subsequent to 30 June 2024, the Group has
taken action in managing its cashflow requirements which include the
following;
• Raising an additional US$3 million (A$4.5 million) on 19 August
2024 through a placement of fully paid ordinary shares to an existing
long-term shareholder; and
2. Material accounting policies (continued)
• Announcing a strategy update on 22 August 2024 which outlined a
restructuring and right-sizing of the organisation and its cost base to
reflect the Group's priority focus on Primobius, as well as the intention to
dispose of non-core assets.
In light of the above, the directors have prepared a cash flow forecast to 30
September 2025. This forecast includes the necessary expenditures to maintain
the Group's assets in good standing, meet its obligations and commitments,
achieve its stated cost reduction strategy, and manage available working
capital. Included in this forecast are Neometals' estimated future share of
capital contributions to Primobius as disclosed in the joint venture approved
budget.
The Group's cash flow forecast indicates a minimum funding requirement of A$11
million will be required progressively from December 2024 by way of debt,
equity, sale of assets, or other forms of funding to continue to meet its
cashflow requirements and strategic objectives through to 30 September 2025.
This cashflow forecast does not currently assume cash inflows from the sale of
non-core assets as the timing is uncertain. However, the directors are
confident additional liquidity will be generated following the completion of a
successful divestment program.
Based on the progress of discussions with various parties and the directors'
expectation that the additional funding will be secured within the required
timeframes, the directors reasonably believe that they will achieve the
matters set out above and therefore the going concern basis of preparation is
appropriate.
Should the Group be unable to achieve the additional funding referred to
above, there is a material uncertainty that may cast significant doubt as to
whether the Group will be able to continue as a going concern and, therefore,
whether it will realise its assets and discharge its liabilities in the normal
course of business.
No adjustments have been made to the financial statements relating to the
recoverability and classification of recorded asset amounts or to the amounts
and classification of liabilities that might be necessary should the Group not
continue as a going concern.
Standards and interpretations adopted in the current year
The Group has adopted all of the new and revised Standards and Interpretations
issued by the Australian Accounting Standards Board (AASB) that are relevant
to its operations and effective for an accounting period that begins on or
after 1 July 2023 and this has not resulted in a material impact on the
financial statements of the Group.
New and revised Standards and amendments thereof and Interpretations effective
for the current year that are relevant to the Group include:
· AASB 2021-2 Amendments to Australian Accounting Standards -
Disclosure of Accounting Policies and Definition of Accounting Estimates
· AASB2021-5 Amendments to Australian Accounting Standards -
Deferred Tax related to Assets and Liabilities arising from a Single
Transaction
· AASB 2023-2 Amendments to Australian Accounting Standards -
International Tax Reform - Pillar Two Model Rules
Standards and interpretations issued but not yet effective
At the date of authorisation of the financial statements, the following
Australian Accounting Standards and Interpretations have been issued or
amended but are not yet effective and have not been adopted by the Group for
the year ended 30 June 2024:
2. Material accounting policies (continued)
Effective for annual reporting periods beginning on or after Expected to be initially applied in the financial year ending
Standard
□ AASB 2014-10 'Amendments to Australian Accounting Standards - Sale or
Contribution of Assets between an Investor and its Associate or Joint Venture
1 January 2025 30 June 2026
□ AASB 2020-6 Amendments to Australian Accounting Standards - Classification of
Liabilities as Current or Non-current
1 January 2024 30 June 2025
□ AASB 2020-1 Amendments to Australian Accounting Standards - Lease Liability in
a Sale and Leaseback
1 January 2024 30 June 2025
□ AASB 2023-1 Amendments to Australian Accounting Standards - Supplier Finance
Agreements
1 January 2024 30 June 2025
□ AASB 2021-2 Amendments to Australian Accounting Standards - Lack of
Exchangeability
1 January 2025 30 June 2026
Australian Accounting Standards and Interpretations that have recently been
issued or amended but are not yet mandatory, have not been early adopted by
the Company for the annual reporting period ended 30 June 2024.
Critical accounting judgments and key sources of estimation uncertainty
In the application of the Group's accounting policies, management is required
to make judgments, estimates and assumptions about carrying values of assets
and liabilities that are not readily apparent from other sources. The
estimates and associated assumptions are based on historical experience and
other factors that are considered to be relevant. Actual results may differ
from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis.
Revisions to accounting estimates are recognised in the period in which the
estimate is revised if the revision affects only that period or in the period
of the revision and future periods if the revision affects both current and
future periods. Refer to note 3 for a discussion of critical judgments in
applying the entity's accounting policies, and key sources of estimation
uncertainty.
Material accounting policies
The following significant accounting policies have been adopted in the
preparation and presentation of the financial report:
(a) Cash and cash equivalents
Cash comprises cash on hand and term deposits with a 30 day cancellation
policy.
(b) Foreign currency translation
Functional and presentation currency
Items included in the financial statements of each of the group's entities are
measured using the currency of the primary economic environment in which the
entity operates ('the functional currency'). The consolidated financial
statements are presented in Australian dollar ($), which is Neometals Ltd's
functional and presentation currency.
(c) Financial instruments issued by the company
Debt and equity instruments
Debt and equity instruments are classified as either liabilities or as equity
in accordance with the substance of the contractual arrangement.
Financial assets
Financial instruments and non-financial assets such as investments in unlisted
entities, are initially measured at fair value plus transaction costs except
where the instrument is classified 'at fair value through profit or loss' in
which case transaction costs are expensed immediately.
The Group classifies its financial assets into the following categories: those
to be measured subsequently at fair value (either through other comprehensive
income 'FVOCI' or through the income statement 'FVTPL') and those to be held
at
2. Material accounting policies (continued)
amortised cost. The classification depends on the Group's business model for
managing its financial assets and the contractual terms of the cash flows.
All assets for which fair value is recognised or disclosed are categorised
within the fair value hierarchy, based on the lowest level input that is
significant to the fair value measurement as a whole, as follows:
- Level 1 - Quoted market prices in active markets for identical
assets.
- Level 2 - Valuation techniques for which the lowest level input
that is significant to the fair value measurement is directly or indirectly
observable.
- Level 3 - Valuation techniques for which the lowest level input
that is significant to the fair value measurement is unobservable.
(d) Non-current assets held for sale
Non-current assets and their disposal groups are classified as held for sale
if their carrying amount will be recovered principally through a sale
transaction rather than continuing use. This condition is regarded as met only
when the sale is highly probable and the non-current asset (or disposal group)
is available for immediate sale in its present condition. Management must be
committed to the sale which should be expected to qualify for recognition as a
completed sale within one year from the date of classification.
When the Group is committed to a sale plan involving loss of control of a
subsidiary, all of the assets and liabilities of that subsidiary are
classified as held for sale when the criteria described above are met,
regardless of whether the Group will retain a non-controlling interest in its
former subsidiary after the sale. Non-current assets (and disposal groups)
classified as held for sale are measured at the lower of their previous
carrying amount and fair value less cost to sell.
(e) Income tax
Current tax
Current tax is calculated by reference to the amount of income taxes payable
or recoverable in respect of the taxable profit or tax loss for the period. It
is calculated using tax rates and tax laws that have been enacted or
substantively enacted by reporting date. Current tax for current and prior
periods is recognised as a liability (or asset) to the extent that it is
unpaid (or refundable).
Deferred tax
Deferred tax is accounted for using the comprehensive balance sheet liability
method in respect of temporary differences arising from differences between
the carrying amount of assets and liabilities in the financial statements and
the corresponding tax base of those items.
In principle, deferred tax liabilities are recognised for all taxable
temporary differences. Deferred tax assets are recognised to the extent that
it is probable that sufficient taxable amounts will be available against which
deductible temporary differences or unused tax losses and tax offsets can be
utilised.
Deferred tax assets and liabilities are measured at the tax rates that are
expected to apply to the period(s) when the asset and liability giving rise to
them are realised or settled, based on tax rates (and tax laws) that have been
enacted or substantively enacted by reporting date. The measurement of
deferred tax liabilities and assets reflects the tax consequences that would
follow from the manner in which the consolidated entity expects, at the
reporting date, to recover or settle the carrying amount of its assets and
liabilities.
Deferred tax assets and liabilities are offset when they relate to income
taxes levied by the same taxation authority and the Company/Consolidated
Entity intends to settle its current tax assets and liabilities on a net
basis.
Tax consolidation
The Company and all its wholly-owned Australian resident entities are part of
a tax-consolidated group under Australian taxation law. Neometals Ltd is the
head entity in the tax-consolidated group. Income tax expense/benefit,
deferred tax liabilities and deferred tax assets arising from temporary
differences of the members of the tax consolidated group are recognised in the
separate financial statements of the members of the tax consolidated group
using a 'group allocation' approach based on the allocation specified in the
tax funding arrangement.
The tax funding arrangement requires a notional current and deferred tax
calculation for each entity as if it were a taxpayer in its own right, except
that unrealised profits, distributions made and received and capital gains and
losses and similar items arising on transactions within the tax consolidated
group are treated as having no consequence. Current tax liabilities and
2. Material accounting policies (continued)
assets and deferred tax assets arising from unused tax losses and tax credits
of the members of the tax consolidated group are recognised by the Company (as
head entity in the tax consolidated group).
Due to the existence of a tax funding arrangement between the entities in the
tax consolidated group, amounts are recognised as payable to or receivable by
the Company and each member of the group in relation to the tax contribution
amounts paid or payable between the parent and the other members of the tax
consolidated group in accordance with the arrangement. In addition to the
Company own current and deferred tax amounts, the company does not recognise
the losses of the members of the tax consolidated group as intercompany
liabilities, it is recognised as part of the equity of the company. When the
company becomes reasonably certain that it will have to reimburse the
subsidiary for its losses, the company recognises an intercompany liability.
Where the tax contribution amount recognised by each member of the tax
consolidated group for a particular period is different to the aggregate of
the current tax liability or asset and any deferred tax asset arising from the
unused tax losses and tax credits in respect of that period, the difference is
recognised as a contribution from, or distribution to, equity participants.
Research & Development Tax offset
In respect of Research and Development tax offsets, the Income tax approach
(AASB 112) of accounting has been utilised, where the tax benefit is presented
within the tax line in the Statement of Profit or Loss and Other Comprehensive
Income.
(f) Exploration and evaluation expenditure
Exploration and evaluation expenditures, excluding general overhead, in
relation to separate areas of interest are capitalised in the year in which
they are incurred and are carried at cost less accumulated impairment losses
where the following conditions are satisfied;
i) the rights to tenure of the area of interest are
current; and
ii) at least one of the following conditions is also
met:
- the exploration and evaluation expenditures are expected to be
recouped through successful development and exploration of the area of
interest, or alternatively, by its sale; or
- exploration and evaluation activities in the area of interest have
not at the reporting date reached a stage which permits a reasonable
assessment of the existence or otherwise of economically recoverable reserves,
and active and significant operations in, or in relation to, the area of
interest are continuing.
Capitalised exploration costs for each area of interest (considered to be the
cash generating unit) are reviewed each reporting date to test whether an
indication of impairment exists. If any such indication exists, the
recoverable amount of the capitalised exploration costs is estimated to
determine the extent of the impairment loss (if any).
Where a decision is made to proceed with development, accumulated expenditure
is tested for impairment and transferred to capitalised development and then
amortised over the life of the reserves associated with the area of interest
once mining operations have commenced.
(g) Property, plant and equipment
Plant and equipment is stated at cost less accumulated depreciation and
impairment. Cost includes expenditure that is directly attributable to the
acquisition of the item. In the event that settlement of all or part of the
purchase consideration is deferred, costs are determined by discounting the
amounts payable in the future to their present value as at the date of
acquisition.
Depreciation is calculated on a diminishing value basis so as to write off the
net cost or other re-valued amount of each asset over its expected useful life
to its estimated residual value. The estimated useful lives, residual values
and depreciation method are reviewed at the end of each annual reporting
period with the effect of any changes recognised on a prospective basis.
The following estimated useful lives are used in the calculation of
depreciation:
Furniture &
Fittings
5-20 years
Plant and
Equipment
2-10 years
Buildings
10-20 years
An item of property, plant and equipment is derecognised upon disposal when no
future economic benefits are expected to arise from the continued use of the
asset. Any gain or loss arising on the disposal or retirement of an item of
property, plant
2. Material accounting policies (continued)
and equipment is determined as the difference between the sales proceeds and
the carrying amount of the asset and is recognised in profit and loss.
(h) Intangibles
Patents, trademarks, licences and customer contracts
Separately acquired patents, trademarks and licences are shown at historical
cost. Patents, trademarks, licenses and customer contracts acquired in a
business combination are recognised at fair value at the acquisition date.
They have a finite useful life and are subsequently carried at cost less
accumulated amortisation and impairment losses.
Research and development
Research expenditure is recognised as an expense as incurred. Development
expenditure is recognised as an asset as incurred if the following have been
demonstrated:
- The technical feasibility of completing the intangible asset so that
it will be available for use or sale;
- The intention to complete the intangible asset and use or sell it;
- The ability to use or sell the intangible asset;
- How the intangible asset will generate probable future economic
benefits; and
- The ability to measure reliably the expenditure attributable to the
intangible asset during its development.
Research and development costs previously recognised as an expense are not
recognised as an asset in a subsequent period.
(i) Provisions
Provision for onerous contract
Present obligations arising under onerous contracts are recognised and
measured as provisions. An onerous contract is considered to exist where the
Group has a contract under which the unavoidable costs of meeting the
obligations under the contract exceed the economic benefits expected to be
received from the contract.
(j) Investments in associates and joint ventures
An associate is an entity over which the Group has significant influence.
Significant influence is the power to participate in the financial and
operating policy decisions of the investee but is not control or joint control
over those policies.
A joint venture is a joint arrangement whereby the parties that have joint
control of the arrangement have rights to the net assets of the joint
arrangement. Joint control is the contractually agreed sharing of control of
an arrangement, which exists only when decisions about the relevant activities
require unanimous consent of the parties sharing control.
The results and assets and liabilities of associates or joint ventures are
incorporated in these consolidated financial statements using the equity
method of accounting, except when the investment, or a portion thereof, is
classified as held for sale, in which case it is accounted for in accordance
with AASB 5. Under the equity method, an investment in an associate or a joint
venture is initially recognised in the consolidated statement of financial
position at cost and adjusted thereafter to recognise the Group's share of the
profit or loss and other comprehensive income of the associate or joint
venture. When the Group's share of losses of an associate or a joint venture
exceeds the Group's interest in that associate or joint venture (which
includes any long-term interests that, in substance, form part of the Group's
net investment in the associate or joint venture), the Group discontinues
recognising its share of further losses. Additional losses are recognised only
to the extent that the Group has incurred legal or constructive obligations or
made payments on behalf of the associate or joint venture.
An investment in an associate or a joint venture is accounted for using the
equity method from the date on which the investee becomes an associate or a
joint venture. Any increase in percentage shareholding is accounted for in the
cost of the investment.
If there is objective evidence that the Group's net investment in an associate
or joint venture is impaired, the requirements of AASB 136 are applied to
determine whether it is necessary to recognise any impairment loss with
respect to the Group's investment. When necessary, the entire carrying amount
of the investment (including goodwill) is tested for impairment in accordance
with AASB 136 Impairment of Assets as a single asset by comparing its
recoverable amount (higher of value in use and fair value less costs to sell)
with its carrying amount. Any impairment loss recognised forms part of the
carrying amount of the investment. Any reversal of that impairment loss is
recognised in accordance with AASB 136 to the extent that the recoverable
amount of the investment subsequently increases.
The Group discontinues the use of the equity method from the date when the
investment ceases to be an associate or a joint venture, or when the
investment is classified as held for sale. When the Group retains an interest
in the former associate
2. Material accounting policies (continued)
or joint venture and the retained interest is a financial asset, the Group
measures the retained interest at fair value at that date and the fair value
is regarded as its fair value on initial recognition in accordance with AASB
9. The difference between the carrying amount of the associate or joint
venture at the date the equity method was discontinued, and the fair value of
any retained interest and any proceeds from disposing of a part interest in
the associate or joint venture is included in the determination of the gain or
loss on disposal of the associate or joint venture. In addition, the Group
accounts for all amounts previously recognised in other comprehensive income
in relation to that associate or joint venture on the same basis as would be
required if that associate or joint venture had directly disposed of the
related assets or liabilities. Therefore, if a gain or loss previously
recognised in other comprehensive income by that associate or joint venture
would be reclassified to profit or loss on the disposal of the related assets
or liabilities, the Group reclassifies the gain or loss from equity to profit
or loss (as a reclassification adjustment) when the equity method is
discontinued.
The Group continues to use the equity method when an investment in an
associate becomes an investment in a joint venture or an investment in a joint
venture becomes an investment in an associate. There is no re-measurement to
fair value upon such changes in ownership interests.
When the Group reduces its ownership interest in an associate or a joint
venture but the Group continues to use the equity method, the Group
reclassifies to profit or loss the proportion of the gain or loss that had
previously been recognised in other comprehensive income relating to that
reduction in ownership interest if that gain or loss would be reclassified to
profit or loss on the disposal of the related assets or liabilities.
When a group entity transacts with an associate or a joint venture of the
Group, profits and losses resulting from the transactions with the associate
or joint venture are recognised in the Group's consolidated financial
statements only to the extent of interests in the associate or joint venture
that are not related to the Group.
3. Critical accounting judgments and key sources of estimation uncertainty
In the application of the Group's accounting policies, which are described in
note 2, management is required to make judgments, estimates and assumptions
about carrying values of assets and liabilities that are not readily apparent
from other sources. The estimates and associated assumptions are based on
historical experience and various other factors that are believed to be
reasonable under the circumstance, the results of which form the basis of
making the judgments. Actual results may differ from these estimates. The
estimates and underlying assumptions are reviewed on an ongoing basis.
Revisions to accounting estimates are recognised in the period in which the
estimate is revised if the revision affects only that period, or in the period
of the revision and future periods if the revision affects both current and
future periods.
3.1 Critical judgments in applying the entity's accounting policies
The following are the critical judgments that management has made in the
process of applying the Group's accounting policies and that have the most
significant effect on the amounts recognised in the financial statements.
(a) Recovery of capitalised exploration and evaluation expenditure
The Group capitalises exploration and evaluation expenditure incurred on
ongoing projects. The recoverability of this capitalised exploration
expenditure is entirely dependent upon returns from the successful development
of mining operations or from surpluses from the sale of the projects or the
subsidiary companies that control the projects. At the point that it is
determined that any capitalised exploration expenditure is definitely not
recoverable, it is written off.
(b) Share-based payments
Equity-settled share-based payments granted are measured at fair value at the
date of grant. The fair value of share options is measured by use of the Monte
Carlo model and requires substantial judgement. Management has made its best
estimate for the effects of non-transferability, exercise restrictions
(including the probability of meeting market conditions attached to the
option), and behavioural considerations.
The fair value of performance rights issued during the period was made with
reference to the Company's closing share price on the date of grant.
Management has been required to estimate the probability that the Company will
meet the performance criteria determined by the board.
(c) Unlisted Investments
The investments in non-listed shares, being financial assets, are required to
be fair valued at each reporting date in accordance with the Accounting
Standards. The valuation of shares held in non-listed companies includes a
number of estimates and judgements as, generally, limited information exists
on such non-listed companies and their underlying assets or projects.
Accordingly, management has engaged an external valuation specialist in
assessing the fair value of all investments in non-listed shares.
(d) Recovery of investments in Joint Ventures and Associates
The recoverability of the investment in associates and joint venture is
entirely dependant on the success of the entity's financial performance where
dividends will be received from retained earning, or from the sale of the
Group's holdings in the project.
4. Parent entity disclosure
Financial Position 2024 2023
$ $
Assets
Current assets 10,266,387 26,199,905
Non-current assets 24,548,760 30,012,521
Total assets 34,815,147 56,212,426
Liabilities
Current liabilities 1,533,732 3,198,663
Non-current liabilities 282,130 519,747
Total liabilities 1,815,862 3,718,410
Net Assets 32,999,285 52,494,016
Equity
Issued capital 158,706,320 146,234,171
Retained earnings (127,997,986) (103,555,639)
Reserves
Share based payments 2,290,951 9,815,484
Total equity 32,999,285 52,494,016
Financial Performance
Loss for the year (22,216,162) (27,642,526)
Other comprehensive income - -
Total comprehensive loss (22,216,162) (27,642,526)
5. (Loss)/profit for the year continuing
operations
Note 2024 2023
$ $
(a) Income
Income from operations consisted of the following items:
Other income:
Other income 17,156 5,000
Interest income 526,963 1,056,585
Total 544,119 1,061,585
(b) Profit / (loss) before income tax
Profit / (loss) before income tax has been arrived at after charging the
following expenses:
Employee benefits
expense:
Equity settled share-based 9 (894,935) (1,747,438)
payments
Superannuation expense (766,439) (743,997)
Employee salaries (5,072,910) (7,578,550)
Other employee benefits (1,166,711) (1,085,024)
Total (7,900,995) (11,155,009)
Impairments:
Impairment expense of 22 (6,599,531) (1,273,045)
associate
Impairment expense of joint 21(i)(iv) (2,800,414) (2,716,703)
venture
Impairment expense of exploration and evaluation expenditure 12 (653,334) -
Impairment of right of use assets 20 (2,766,774) -
Total (12,820,053) (3,989,748)
Other expenses
Research and development expense (1,275,192) (303,719)
Legal fees (974,576) (1,944,369)
Travel (783,096) (1,237,470)
Write-off of abandoned patents (754,905) -
Consultant fees (737,739) (2,564,459)
Insurances (619,442) (642,782)
Depreciation of non-current assets (491,176) (420,122)
ASX/AIM fees (445,576) (433,444)
Accounting fees (416,708) (348,500)
Net fair value realised loss on listed financial assets (274,140) (150,247)
Net fair value unrealised loss on listed financial assets (57,041) (512,769)
Other expenses (1,010,751) (1,834,153)
Total (7,840,342) (10,392,034)
6. Discontinued operations
During the year, the Board approved the divestment of the 100% owned Barrambie
Titanium/Vanadium Project. Activities have focussed on the divestment of the
project, with interest from third parties to acquire the asset. The results of
the discontinued operation which have been included in the financial
statements for the year were as follows:
2024 2023
Results of discontinued operations $ $
(Re-presented(i))
Loss from discontinued operations (30,945,885) (195,807)
Cash flows from discontinued operations
Cashflows from operating activities (176,178) (87,030)
Cashflows from investing activities (3,513,913) (4,689,095)
Cashflows from financing activities (114,764) (60,664)
Effect on the financial position of the group
Assets classified as held for sale 20,214,451 -
Liabilities associated with the assets classified as held for sale (214,451) -
i) The 2023 financial year expenses and cashflows
related to the Barrambie Project have been re-presented to discontinued
operations due to the business unit being transferred to held for sale in the
current financial year.
The impact of the adjustment is as follows:
As previously reported Discontinued operations adjustment As
re-represented adjustment
$ $ $
Impact on loss for the year
Employee expenses (11,155,509) 500 (11,155,009)
Occupancy expenses (188,662) 11,339 (177,323)
Finance costs (29,859) 3,852 (26,007)
Other expenses (10,563,595) 171,561 (10,392,034)
Marketing expenses (450,914) 8,555 (442,359)
Loss from discontinued operations - (195,807) (195,807)
Impact on cashflows for the year
Payments to suppliers and employees (20,398,542) 87,030 (20,311,512)
Payments to suppliers - discontinued operations - (87,030) (87,030)
Payments for property, plant & equipment (435,530) 299,698 (135,832)
Payments for property, plant & equipment - discontinued operations - (299,698) (299,698)
Payments for exploration and evaluation (5,827,390) 4,389,397 (1,437,993)
Payments for exploration and evaluation - discontinued operations - (4,389,397) (4,389,397)
Lease payments (347,854) 60,664 (287,190)
Lease payments - discontinued operations - (60,664) (60,664)
7. Income taxes
2024 2023
$ $
(a) Income tax (benefit) / expense recognised in profit or loss
Current income tax:
Current income tax charge (316,580) (591,751)
Deferred tax - (782,904)
Total tax (benefit) / expense (316,580) (1,374,655)
The prima facie income tax expense on pre-tax accounting profit from
continuing
operations reconciles to the income tax benefit in the financial statements as
follows:
(Loss) / profit before income tax (69,190,212) (36,179,024)
Income tax calculated at 30% (20,733,875) (10,853,707)
Effect of income and expenses that are not deductible in determining taxable 2,269,354 3,384,630
profit
Effect of income and expenses that are not recognised as deferred tax assets 18,752,112 6,493,707
Adjustments for current tax of prior periods (287,591) 192,466
Refund of prior year R&D claim (316,580) (591,751)
Income tax benefit in profit or loss (316,580) (1,374,655)
The tax rate used in the above reconciliation is the corporate tax rate of 30%
payable by Australian corporate entities on taxable income under Australian
tax law. There has been no change in the corporate tax rate during the
reporting period.
(b) Deferred tax balances
The net deferred tax balance as presented in the statement of financial
position is detailed below:
2024 2023
$ $
Deferred tax liabilities (16,529,051) (16,529,051)
Deferred tax assets 16,529,051 16,529,051
Net deferred tax balance - -
Exploration and evaluation expenditure $ Investment in associate $ Tax losses Total
Other $ $
$
Balance at 30/06/22 (12,424,751) (3,516,952) 1,173,209 13,985,590 (782,904)
Charge to profit or loss (1,784,661) 1,197,313 (281,547) 1,651,799 782,904
Balance at 30/06/23 (14,209,412) (2,319,639) 891,662 15,637,389 -
Charge to profit or loss - - - - -
Balance at 30/06/24 (14,209,412) (2,319,639) 891,662 15,637,389 -
(c) Deferred tax assets not brought to account
At 30 June 2024 the amount of tax losses not recognised was $4,982,102 (June
2023: $6,493,707). The utilisation of tax losses depends upon the generation
of future taxable profits and can be carried indefinitely while also being
subject to relevant tax legislation associated with recoupment.
7. Income taxes (continued)
Tax Consolidation
Relevance of tax consolidation to the consolidated entity
The Company and its wholly-owned Australian resident entities have formed a
tax-consolidated group and are therefore taxed as a single entity. The head
entity within the tax-consolidated group is Neometals Ltd. The members of
the tax-consolidated group are identified at note 23.
Nature of tax funding arrangements and tax sharing agreements
Entities within the tax-consolidated group have entered into a tax funding
arrangement and a tax sharing agreement with the head entity. Under the
terms of the tax funding arrangement, Neometals Ltd and each of the entities
in the tax consolidation group has agreed to pay a tax equivalent payment to
or from the head entity, based on the current tax liability or current tax
assets of the entity. Such amounts are reflected in amounts receivable from
or payable to each entity in the tax consolidated group, and are eliminated on
consolidation. The tax sharing agreement entered into between the members of
the tax-consolidated group provides for the determination of the allocation of
income tax liabilities between the entities should the head entity default on
its payment obligations or if an entity should leave the tax-consolidated
group. The effect of the tax sharing agreement is that each member's tax
liability for tax payable by the tax-consolidated group is limited to the
amount payable to the head entity under the tax funding arrangement.
8. Key management personnel compensation
Details of key management personnel compensation are provided on pages 20-29
of the Directors' Report.
The aggregate compensation made to key management personnel of the Group is
set out below:
2024 2023
$ $
Short-term employee benefits 2,615,749 3,405,081
Post-employment benefits 185,603 176,750
Share-based payments 586,419 1,064,871
Termination benefits 114,869 -
Total 3,502,640 4,646,702
9. Share based payments
Neometals Ltd has an ownership based remuneration scheme for executives and
employees.
Performance Rights Plan ("PRP")
In accordance with the provisions of the PRP, as approved by shareholders at
the Company's AGM on 25 November 2020, employees, Non-Executive and Executive
Directors and consultants may be offered performance rights at such times and
on such terms as the board considers appropriate.
All performance rights issued under the PRP are measured over a three year
period with an opportunity for the performance conditions to be re-measured
six months later should they not vest at the first vesting date. The vesting
of the performance rights is dependent on 3 criteria:
(a) Tranche 1 - The performance conditions of 40% of
Performance Rights will be measured as at each vesting date by comparing the
Company's total shareholder return (TSR) with that of a comparator group of
resource companies over the relevant period.
The Performance Rights will vest depending on the Company's percentile ranking
within the comparator group on the relevant Vesting Date as follows:
· If the Company ranks below the 50(th) percentile,
none of the Performance Rights will vest.
· If the Company ranks at the 50(th) percentile,
50% of the Performance Rights will vest.
· For each 1% ranking at or above the 51st
percentile, an additional 2% of the Performance Rights will vest, with 100%
vesting where the Company ranks at or above the 75th percentile.
9. Share based payments (continued)
(b) Tranche 2 - The performance conditions of 40% of
Performance Rights will be measured as at each vesting date by calculating the
Company's TSR calculated over the period commencing on the Comparator Start
Date and ending on the relevant Vesting Date (Absolute TSR).
The Performance Rights will vest depending on the Company's Absolute TSR on
the relevant Vesting Date as follows:
· If the Company's Absolute TSR is less than 15%,
none of the Performance Rights will vest.
· If the Company's Absolute TSR is 15%, 50% of the
Performance Rights will vest.
· For each additional 1% TSR above 15% Absolute
TSR, an additional 10% of the Performance Rights will vest, with 100% vesting
where the Company's Absolute TSR is at or above 20%.
(c) Tranche 3 - The performance conditions of 20% of
Performance Rights will be measured as at each Vesting Date as follows:
10% will vest if the combined market capitalisation of Neometals and any
entity demerged from the Neometals Group and separately listed on the ASX
would meet the threshold for entry into the ASX/S&P 200 Index.
10% to vest at the discretion of the Board based on the overall achievement by
the company of its strategic objectives (both financial and non-financial)
under the leadership of the CEO and in delivering value to NMT's shareholders
and broader stakeholders.
General terms of performance rights granted under the PRP:
· The performance rights will not be quoted on the ASX.
· Performance rights can only be granted to employees, Non-Executive
and Executive Directors and consultants of the Company.
· Performance rights are transferable to eligible nominees.
· Performance rights not exercised on or before the vesting date will
lapse.
· All shares allotted upon the vesting of performance rights rank
equally in all respects to all previously issued shares.
· Performance rights confer no right to vote, attend meetings,
participate in a distribution of profit or a return of capital or another
participating rights or entitlements on the grantee unless and until the
performance rights vest.
9. Share based payments (continued)
The following share-based payment arrangements in relation to performance
rights were in existence at the end of the period:
2024 Grant date Number Vesting date Expiry date Grant date share price Expected volatility Risk-free rate Fair value at grant date
Staff and consultants((1)) 7-Dec-20 80,000 31/12/2023 30/06/2024 0.230 50% 0.10% 0.18
Chris Reed((2)) 11-Oct-21 574,049 31/12/2024 30/06/2025 0.855 55% 0.34% 0.77
Jason Carone((2)) 11-Oct-21 235,885 31/12/2024 30/06/2025 0.855 55% 0.34% 0.77
Mike Tamlin((2)) 11-Oct-21 262,094 31/12/2024 30/06/2025 0.855 55% 0.34% 0.77
Darren Townsend((2)) 11-Oct-21 262,094 31/12/2024 30/06/2025 0.855 55% 0.34% 0.77
Staff and consultants((2)) 11-Oct-21 817,307 31/12/2024 30/06/2025 0.855 55% 0.34% 0.77
Chris Reed 5-Sep-22 239,904 31/12/2025 30/06/2026 1.310 61% 3.26% 1.15
Jason Carone 5-Sep-22 144,919 31/12/2025 30/06/2026 1.310 61% 3.26% 1.15
Mike Tamlin 5-Sep-22 126,804 31/12/2025 30/06/2026 1.310 61% 3.26% 1.15
Darren Townsend 5-Sep-22 126,804 31/12/2025 30/06/2026 1.310 61% 3.26% 1.15
Staff and consultants 5-Sep-22 495,625 31/12/2025 30/06/2026 1.310 61% 3.26% 1.15
Chris Reed 11-Sep-23 571,512 31/12/2026 30/06/2027 0.433 71% 3.84% 0.36
Jason Carone 11-Sep-23 314,759 31/12/2026 30/06/2027 0.433 71% 3.84% 0.36
Mike Tamlin 11-Sep-23 275,414 31/12/2026 30/06/2027 0.433 71% 3.84% 0.36
Darren Townsend 11-Sep-23 275,414 31/12/2026 30/06/2027 0.433 71% 3.84% 0.36
Staff and consultants 11-Sep-23 1,322,662 31/12/2026 30/06/2027 0.433 71% 3.84% 0.36
Staff and consultants 19-Jan-24 318,946 31/12/2026 30/06/2027 0.165 71% 3.84% 0.36
Staff and consultants((3)) 11-Sep-23 249,937 30/06/2024 30/06/2024 0.433 71% 3.84% 0.45
Staff and consultants 11-Sep-23 214,233 30/06/2025 30/06/2025 0.433 71% 3.84% 0.45
Staff and consultants 11-Sep-23 214,233 30/06/2026 30/06/2026 0.433 71% 3.84% 0.45
Steven Cole((4)) 12-Jul-23 162,089 30/06/2024 30/06/2024 0.511 n/a n/a 0.49
Doug Ritchie((4)) 12-Jul-23 91,175 30/06/2024 30/06/2024 0.511 n/a n/a 0.49
Natalia Streltsova((4)) 12-Jul-23 91,175 30/06/2024 30/06/2024 0.511 n/a n/a 0.49
Jenny Purdie((4)) 12-Jul-23 121,567 30/06/2024 30/06/2024 0.511 n/a n/a 0.49
Les Guthrie((4)) 12-Jul-23 25,326 30/06/2024 30/06/2024 0.511 n/a n/a 0.49
Total 7,613,927
The valuation of the Non-executive Directors performance rights has been based
on the amount of their fees that have been forgone calculated using a 5-day
VWAP. The fair value of other KMP performance rights issued have been
independently valued by a third party using a Monte Carlo simulation to
determine fair value. A dividend yield of 0% has been applied to all
share-based payments. The total expense recognised for the period arising from
share-based payment transactions and accounted for as equity-settled
share-based payment transactions is $894,935 (2023: $1,747,438).
1) 100% (80,000) of these performance rights have vested at 30 June
2023, of which 80,000 have been converted into ordinary shares after 30 June
2024.
2) 0% (nil) of these performance rights have vested at 30 June 2024
and will be retested at 31 December 2024.
3) 100% (249,937) of these performance rights have vested at 30 June
2024, of which 249,937 have been converted into ordinary shares after 30 June
2024.
4) 100% (491,332) of these performance rights have vested at 30 June
2024, of which 91,175 have been converted into ordinary shares. The remaining
portion remain unexercised.
9. Share based payments (continued)
The following reconciles the outstanding performance rights granted at the
beginning and end of the financial year:
2024 2023
Performance Performance
Rights No. Rights No.
Balance at beginning of the financial year 11,412,220 15,293,385
Granted during the financial year as compensation 4,694,711 1,705,325
Exercised during the financial year ((i)) (6,180,793) (4,364,780)
Lapsed during the financial year ((ii)) (1,186,779) (956,433)
Forfeited during the financial year ((iii)) (1,125,432) (265,277)
Balance at the end of the financial year ((iv)) 7,613,927 11,412,220
(i) 6,180,793 shares in the Company were issued on vesting of
performance rights at a fair value of $1,299,763 at grant (2023: 4,364,780 for
a fair value of $688,259 at grant). Refer to note 17.
(ii) 1,186,779 performance rights lapsed during the financial year
(2023: 956,433).
(iii) 1,125,432 performance rights were forfeited on cessation of
employment (2023: 265,277)
(iv) 821,269 of this balance is exercisable at the end of the period.
10. Trade and other receivables
2024 2023
$ $
Current
Sundry debtors((i)) 695,372 1,008,422
Other receivables 39,487 720,376
Prepayments 232,999 302,806
Total 967,858 2,031,604
(i) Sundry debtors is inclusive of $337,409 owed from Primobius
GmbH for reimbursement of expenditure paid for by Neometals Ltd.
11. Other financial assets
2024 2023
$ $
Current
Financial assets measured at FVTPL((i)) 218,089 763,650
Term deposits 325,000 -
Total Current 543,089 763,650
Non-current
Financial assets measured at FVTPL((ii)) 3,769,028 4,429,896
Convertible note((iii)) 749,063 669,075
Rental bond term deposit 295,712 200,000
Total Non-current 4,813,803 5,298,971
Total 5,356,892 6,062,621
(i) Level 1 - Quoted market prices in active markets
for identical assets:
The Group has invested in a portfolio of listed shares which are held for
trading. Financial assets at FVTPL are measured at fair value at the end of
each reporting period, with any fair value gains or losses recognised in
profit or loss. The valuation technique and key inputs used to determine the
fair value are quoted bid prices in an active market.
(ii) Level 3 - Valuation techniques for which the
lowest level input that is significant to the fair value measurement is
unobservable:
The Group has invested in a portfolio of non-listed shares which are not
actively traded. The fair values of these investments have been determined by
external valuation specialists from time to time using various valuation
techniques, including but not limited to the market approach, the cost or net
assets value approach and the income approach.
(iii) The Group has invested US$500,000 in a financing
round for private US start up, Tyfast Energy Corp. The investment is by way of
convertible note providing the Group with the ability to obtain a minority
equity stake in Tyfast.
12. Exploration and evaluation expenditure
Consolidated
Capitalised
exploration and
evaluation
expenditure
$
Gross carrying amount
Balance at 30 June 2022 47,176,469
Additions 5,948,962
Balance at 30 June 2023 53,125,431
Additions 3,474,348
Remeasurement to fair value less cost of disposal (30,558,282)
Balance transferred to asset held for sale (25,388,163)
Balance at 30 June 2024 653,334
Accumulated impairment
Balance at 30 June 2022 5,760,720
Balance at 30 June 2023 5,760,720
Impairment expense 653,334
Impairment expense on asset held for sale (5,760,720)
Balance at 30 June 2024 653,334
Net book value
As at 30 June 2023 47,364,711
As at 30 June 2024 -
The recovery of exploration expenditure carried forward is dependent upon the
discovery of commercially viable mineral and other natural resource deposits,
their development and exploration, or alternatively their sale.
13. Property, plant and equipment
Consolidated
Plant and
equipment
at cost
$
Gross carrying amount
Balance at 30 June 2022 1,233,015
Additions 454,133
Written off (147,524)
Balance at 30 June 2023 1,539,624
Additions 48,744
Transferred to asset held for sale (484,631)
Balance at 30 June 2024 1,103,737
Accumulated depreciation
Balance at 30 June 2022 582,883
Depreciation expense 190,205
Written off (110,733)
Balance at 30 June 2023 662,355
Depreciation expense 183,637
Transferred to asset held for sale (163,740)
Balance at 30 June 2024 682,252
Net book value
As at 30 June 2023 877,269
As at 30 June 2024 421,485
14. Trade and other payables
2024 2023
$ $
Trade payables 26,795 322,691
Accrued expenses 313,994 1,868,175
Total 340,789 2,190,866
The average credit period on purchases is 30 days. No interest is charged on
the trade payables. The Group has financial risk management policies in place
to help ensure that all payables are paid within the settlement terms.
15. Provisions
2024 2023
$ $
Current
Annual leave 682,283 847,923
Long service leave 271,761 173,690
Total current 954,044 1,021,613
Non-current
Long service leave 39,132 72,685
Total non-current 39,132 72,685
Total 993,176 1,094,298
16. Issued capital
2024 2023
$ $
622,810,316 fully paid ordinary shares (2023: 552,741,176) 158,706,319 146,234,171
2024 2023
No. $ No. $
Fully paid ordinary shares
Balance at beginning of financial year 552,741,176 146,234,171 548,376,396 145,564,286
Share issue costs - (958,639) - (18,374)
Issue of capital 63,888,347 12,131,024 - -
Other share based payments (see note 9) 6,180,793 1,299,763 4,364,780 688,259
Balance at the end of the financial year 622,810,316 158,706,319 552,741,176 146,234,171
Fully paid ordinary shares carry one vote per share and carry the right to
dividends.
Share options
At balance date there were no share options in existence over ordinary shares
(2023: nil).
Performance rights
At balance date there were 7,613,927 performance rights in existence over
ordinary shares (2023: 11,412,220).
17. Reserves
The share based payments reserve arises on the grant of share options and
performance rights for the provision of services by consultants and to
executives and employees under the employee share option plan, performance
rights plan, employment contracts or as approved by shareholders. Amounts are
transferred out of the reserve and into issued capital when the options are
exercised or when shares are issued pursuant to the terms of the performance
rights. Further information about share-based payments to employees is
provided in note 9 to the financial statements.
2024 2023
$ $
Share based payments reserve:
Balance at the beginning of the financial year 9,515,136 8,455,957
Increase in share based payments 894,935 1,747,438
Amounts transferred to share capital on exercise (1,299,763) (688,259)
Historical reserve clearing((i)) (6,819,357) -
Balance at the end of the financial year 2,290,951 9,515,136
Convertible note reserve:
Balance at the beginning of the financial year 300,349 300,349
Historical reserve clearing((ii)) (300,349) -
Balance at the end of the financial year - 300,349
Investment revaluation reserve:
Balance at the beginning of the financial year 1,019,637 1,019,637
Historical reserve clearing((iii)) (1,019,637) -
Balance at the end of the financial year - 1,019,637
Total Reserves 2,290,951 10,835,122
i) At 30 June 2024, the value of the reserve is reflective of the
current performance rights in existence. The remaining amount has been
transferred to accumulated losses.
ii) In August 2013 former Chairman, David Reed, committed to provide
a standby facility to support the Company's working capital position. As a
result, and following shareholder approval, 2 million convertible notes were
issued to David Reed that were converted into 50,000,000 fully paid ordinary
shares in November 2015. At 30 June 2024, these historical amounts were
cleared from the reserve to accumulated losses.
iii) The investments revaluation reserve represents historical gains
and losses which had accumulated under a previous policy of revaluing
available-for-sale financial assets in other comprehensive income and which
ceased on 30 June 2017. At 30 June 2024, these historical amounts were cleared
from the reserve to accumulated losses.
18. Earnings per share
2024 2023
Cents per share Cents per share
Basic earnings per share:
Continuing operations (6.43) (6.27)
Continuing and discontinued operations (11.65) (6.30)
Diluted earnings per share:
Continuing operations (6.43) (6.27)
Continuing and discontinued operations (11.65) (6.30)
Basic and diluted loss per share
The loss and weighted average number of ordinary shares used in the
calculation of basic and diluted loss per share are as follows:
2024 2023
$ $
Loss ((i))
Continuing operations (38,167,032) (34,608,562)
Continuing and discontinued operations (69,112,917) (34,804,369)
2024 2023
No. No.
Weighted average number of ordinary shares for the purpose of basic loss per 593,279,914 552,167,746
share
Weighted average number of ordinary shares for the purpose of diluted loss per 593,279,914 552,167,746
share
(i) Loss used in the calculation of profit / (loss) per share
reconciles to net loss in the consolidated statement of comprehensive income.
19. Commitments for expenditure
(a) Exploration and evaluation expenditure commitments
The Consolidated Entity holds mineral exploration licences in order for it to
undertake its exploration and evaluation activities. To continue to hold
tenure over these areas the Group is required to undertake a minimum level of
expenditure on or in relation to the leases. Minimum expenditure commitments
for the exploration and mining leases for the 2024 financial year are outlined
in the table below.
2024 2023
$ $
Exploration expenditure commitments
Not longer than 1 year((i)) 739,212 707,509
(i) Due to the nature of this expenditure, in that the expenditure
commitments may be reduced by the relinquishment of tenements, estimates for
the commitment have not been forecast beyond June 2025.
(b) Joint venture commitments
Pursuant to the shareholders agreement providing shareholders funding, in July
2024, Neometals Ltd contributed €2,000,000 to Primobius GmbH to continue to
fund ongoing joint venture activities.
20. Leases
Leasing arrangements
Leases relate to the lease of commercial premises in West Perth, Welshpool,
and a photocopier. The lease agreement for the Company's West Perth premises
was renewed until 30 June 2026. The lease of a photocopier is for a period of
36 months expiring in June 2026. The Welshpool lease expired in February 2023
and was renewed until February 2026. A lease was entered into in June 2023 for
another floor in the West Perth office until 30 June 2026. The commitments are
based on the fixed monthly lease payment. At 30 June 2024, the leases
belonging to Australian Titanium (Welshpool warehouse and West Perth office
floor) were transferred to asset held for sale. On 1 January 2022, Recycling
Industries Scandinavia AB (RISAB) entered into a land lease agreement with the
Port of Pori until 31 December 2035, which has been included due to the
consolidation of RISAB, now that Neometals Ltd has control. The right of use
asset related to this land use agreement has been impaired.
30 June 2024
Right-of-use assets Land & Equipment Total
Buildings
$ $ $
Cost 4,265,755 14,359 4,280,114
Accumulated Depreciation (1,100,724) (3,590) (1,104,313)
Impairment (2,766,774) - (2,766,774)
Carrying Amount 398,257 10,769 409,026
30 June 2024
Lease liability Land & Equipment Total
Buildings
$ $ $
Opening - 937,673
937,673
Additions - 14,359 14,359
Amount recognised on gaining control 3,598,854 - 3,598,854
Interest 116,093 1,004 117,097
Lease repayments (347,889) (4,188) (352,077)
Transferred to held for sale (204,985) - (204,985)
Closing 4,099,746 11,175 4,110,921
Current 124,856 3,440 128,296
Non-current 3,974,890 7,735 3,982,625
30 June 2023
Right-of-use assets Buildings Equipment Total
$ $ $
Cost 1,813,441 9,044 1,822,485
Accumulated Depreciation (917,751) (9,044) (926,795)
Carrying Amount 895,690 - 895,690
20. Leases (continued)
30 June 2023
Lease liability Buildings Equipment Total
$ $ $
Opening 362,713 9,044 371,757
Additions 935,241 - 935,241
Interest 26,827 172 26,999
Lease repayments (387,107) (9,216) (396,323)
Closing 937,674 - 937,674
Current 285,625 - 285,625
Non-current 652,049 - 652,049
2024 2023
$ $
Amounts recognised in profit and loss
Depreciation expense on right-of-use asset 177,518 332,817
Interest expense on lease liabilities 63,266 26,999
Impairment expense 2,766,774 -
Total 3,007,558 359,816
21. Joint arrangements
Name of operation Principal activity Interest
2024 2023
% %
Reed Advanced Materials Pty Ltd((i)) Evaluation of lithium hydroxide process 70 70
The Consolidated Entity's interest in assets employed in the above joint
venture is detailed below.
(i) Reed Advanced Materials Pty Ltd ("RAM")
On 6 October 2015 Neometals and Process Minerals International Pty Ltd entered
into a shareholders agreement for the purposes of establishing and operating a
joint venture arrangement through RAM to operate a business of researching,
designing and developing the capabilities and technology relating to the
processing of lithium hydroxide. Following the execution of the shareholders
agreement RAM was held 70:30 between Neometals and Process Minerals
International.
Summarised financial information for the joint venture: 2024 2023
$ $
Carrying value of investment in the joint venture 1 1
Opening loan to joint venture - 350,000
Loan to joint venture during the period 1,143,956 2,366,703
Impairment of loan to joint venture (1,143,956) (2,716,703)
Closing loan to joint venture - -
Share of loss of joint venture not recognised in profit or loss (1,192,497) (1,532,266)
Reed Advanced Materials Pty Ltd Summary Balance Sheet 2024 2023
$ $
Current assets 1,475,676 1,465,895
Non-current assets 601,304 678,909
Current liabilities (7,790,196) (6,147,087)
Non-current liabilities - -
21. Joint arrangements (continued)
Name of operation Principal activity Interest
2024 2023
% %
Primobius GmbH((ii)) Lithium battery recycling 50 50
The Consolidated Entity's interest in assets employed in the above joint
venture is detailed below.
(ii) Primobius GmbH
On 31 July 2020, Neometals and SMS group GmbH entered into a formal agreement
to establish a 50:50 JV ('Primobius GmbH') to commercialise Neometals
proprietary lithium battery recycling process.
Summarised financial information for the joint venture: 2024 2023
$ $
Opening balance of investment in joint venture 4,699,280 5,458,508
Cash contributions 4,124,491 3,091,947
Share of loss of joint venture recognised in profit or loss (6,157,321) (3,851,175)
Carrying value of investment in the joint venture 2,666,450 4,699,280
Primobius GmbH Summary Balance Sheet 2024 2023
$ $
Current assets((a)) 2,195,514 6,200,733
Non-current assets 7,028,391 8,667,753
Current liabilities (3,788,294) (5,307,806)
Non-current liabilities - -
Revenue 19,149,274 1,567,123
Expenses((b)) (31,463,917) (9,269,473)
Loss from continuing operations (12,314,643) (7,702,350)
Share of loss of joint venture recognised in profit or loss (6,157,321) (3,851,175)
((a)) The current asset balance is inclusive of cash and cash equivalents of
$1,688,116 (2023: $5,566,896)
((b)) The expenses balance is inclusive of depreciation of $2,451,581 (2023:
$2,472,877)
21. Joint arrangements (continued)
Name of operation Principal activity Interest
2024 2023
% %
Recycling Industries Scandinavia AB((iii)) Vanadium recovery 88.0 72.5
The Consolidated Entity's interest in assets employed in the above joint
venture is detailed below.
(iii) Recycling Industries Scandinavia AB ("RISAB")
In March 2023, Neometals and Critical Metals Ltd executed an agreement to
formalise a 50:50 Vanadium Recovery Project JV (RISAB). In April 2023,
Neometals' interest in RISAB increased to 72.5% following additional equity
contributions of $3.0 million. During the financial year, Neometals ownership
increased to 88% from additional contributions resulting in consolidation of
RISAB within the Group's financial statements. The balance of the investment
in RISAB has been impaired to nil.
Summarised financial information for the joint venture: 2024 2023
$ $
Opening balance of investment in joint venture 642,964 -
Cash contributions 3,375,352 4,090,590
Share of (profit)/loss of joint venture recognised in profit or loss (2,361,858) (3,447,626)
Impairment of joint venture (1,656,458) -
Carrying value of investment in the joint venture - 642,964
Name of operation Principal activity Interest
2024 2023
% %
ACN 630 589 507 Pty Ltd((iv)) Lithium-ion battery recycling IP 50 50
The Consolidated Entity's interest in assets employed in the above joint
venture is detailed below.
(iv) ACN 630 589 507 Pty Ltd ("ACN 630")
On 8 December 2022, Neometals transferred 50% equity interest in battery
recycling IP holding company, ACN 630 589 507 Pty Ltd, to SMS group GmbH on an
unconditional basis. As a result of this, ACN 630 left the Neometals
consolidated group due to a loss of control event.
Summarised financial information for the joint venture: 2024 2023
$ $
Opening balance of investment in joint venture 106,801 -
Cash contributions 60,000 106,801
Share of loss of joint venture recognised in profit or loss (97,087) -
Carrying value of investment in the joint venture 69,714 106,801
21. Joint arrangements (continued)
ACN 630 589 507 Pty Ltd Summary Balance Sheet 2024 2023
$ $
Current assets 57,124 119,077
Non-current assets 286,277 275,722
Current liabilities - (10,000)
Non-current liabilities (333,600) (213,598)
22. Investment in associate
Redivium Limited (formerly Hannans Ltd)
Name of operation Principal activity Interest
2024 2023
% %
Redivium Limited (formerly Hannans Ltd) Lithium-ion battery recycling 26.04 26.09
The above associate is accounted for using the equity method in this
consolidated financial report.
Summarised information for the associate:
2024 2023
$ $
Opening carrying value of investment in associate 9,677,933 13,668,977
Shares purchased / (disposed of) at fair value - 694,515
Share of loss of associate recognised in profit or loss((i)) (438,965) (3,412,514)
Impairment expense((ii)) (6,599,531) (1,273,045)
Closing carrying value of investment in associate((III)) 2,639,437 9,677,933
(i) The equity accounted share of the associate's loss
is adjusted as if applying the same accounting policies as Neometals is
credited against the carrying value of the investment in the associate.
(ii) In the current financial year, the carrying value
of the investment in associate has been impaired down to its carrying value on
a per share basis, resulting in a $6,599,531 expense (2023: $1,273,045)
(iii) The fair value of the Groups investment in
Redivium as at 30 June 2024 on a per share basis is $2,639,437 (2023:
$9,677,933) based on a share price of $0.003 at 30 June 2024 (30 June 2023:
$0.011)
2024 2023
No. No.
Shares held in Redivium Limited 879,812,014 879,812,014
Redvium Limited Summary Balance Sheet 2024 2023
$ $
Current assets 3,374,202 3,681,473
Non-current assets 13,177,886 13,095,013
Current liabilities (90,702) (142,230)
Non-current liabilities - -
23. Subsidiaries
Name of entity Country of Ownership interest
incorporation
2024 2023
% %
Parent entity
Neometals Ltd Australia
Subsidiaries
Australian Titanium Pty Ltd (formerly Australian Vanadium Corporation Australia 100 100
(Holdings) Pty Ltd)((i))
Alphamet Management Pty Ltd (formerly Australian Vanadium Corporation Australia 100 100
(Investments) Pty Ltd)
Inneovation Pty Ltd (formerly Australian Vanadium Exploration Pty Ltd) Australia 100 100
Neometals Energy Pty Ltd (formerly Barrambie Gas Pty Ltd) Australia 100 100
Neomaterials Pty Ltd (formerly GMK Administration Pty Ltd) Australia 100 100
Neometals Investments Pty Ltd (formerly Gold Mines of Kalgoorlie Pty Ltd) Australia 100 100
Urban Mining Pty Ltd (formerly Mount Finnerty Pty Ltd) Australia 100 100
Adamant Technologies Pty Ltd Australia 100 100
Avanti Materials Ltd Australia 100 100
Ecometals Pty Ltd Australia 100 100
Avanti Minerals Ltd Australia 100 -
Recycling Industries Scandavia AB((ii)) Sweden 88 N/A
Novana Oy Finland 88 N/A
All of these companies are members of a tax consolidated group. Neometals Ltd
is the head entity of the tax consolidated group.
(i) Australian Titanium Pty Ltd has been classified as
asset held for sale. Refer to note 6 for further information.
(ii) Refer to note 21 for further information on
change in ownership percentage.
24. Segment information
Basis for segmentation
AASB 8 Operating Segments requires the presentation of information based on
the components of the entity that management regularly reviews for its
operational decision making. This review process is carried out by the Chief
Operating Decision Maker ("CODM") for the purpose of allocating resources and
assessing the performance of each segment. The amounts reported for each
operating segment is the same measure reviewed by the CODM in allocating
resources and assessing performance of that segment.
For management purposes, the Group operates under three operating segments
comprised of the Group's lithium, titanium/vanadium and 'other segments' which
comprises other minor exploration projects and mineral process technology
businesses. The titanium/vanadium operating segment is separately identified
given it possess different competitive and operating risks and meets the
quantitative criteria as set out in the AASB 8. The 'other segments'
category is the aggregation of all remaining operating segments given
sufficient reportable operating segments have been identified.
24. Segment information (continued)
For the year ended 30 June 2024
Reportable operating segments Lithium Vanadium & Titanium Other Corporate Total
$ $ $ $ $
Revenue from external customers - - - - -
Cost of sales - - - - -
Gross profit/(loss) - - - - -
Other income - - - 544,119 544,119
Share of loss of JV and associate (6,254,409) (2,361,858) (438,965) - (9,055,232)
Impairment on investment in associate & JV((i)) (1,143,956) (1,656,458) (6,599,531) - (9,399,945)
Depreciation and Amortisation - (14,382) - (298,764) (313,146)
Total expenses (659,818) (6,653,438) (803,460) (12,142,692) (20,259,408)
Loss before tax (8,058,183) (10,686,136) (7,841,956) (11,897,337) (38,483,612)
Loss for the year from discontinued operations - (30,945,885) - - (30,945,885)
Income tax benefit - - - 316,580 316,580
Consolidated loss after tax (8,058,183) (41,632,021) (7,841,956) (11,580,757) (69,112,917)
As at 30 June 2024
Reportable operating segments Lithium Vanadium & Titanium Other Corporate Total
$ $ $ $ $
Total segment assets 2,744,994 341,332 7,376,284 11,457,403 21,920,013
Assets classified as held for sale - 20,214,451 - - 20,214,451
Total assets 2,744,994 20,555,783 7,376,284 11,457,403 42,134,464
24. Segment information (continued)
For the year ended 30 June 2023
Reportable operating segments Lithium Vanadium /Titanium Other Corporate Total
$ $ $ $ $
Revenue from external customers - - - - -
Cost of sales - - - - -
Gross profit/(loss) - - - - -
Other income - - - 1,061,585 1,061,585
Share of loss of JV and associate (3,851,175) (3,447,626) (3,412,514) - (10,711,315)
Impairment on investment in associate & JV((i)) (2,716,703) - (1,273,045) - (3,989,748)
Depreciation and Amortisation - (7,571) - (412,551) (420,122)
Total expenses (213,765) (3,182,316) (670,161) (17,857,375) (21,923,617)
Profit/(loss) before tax (6,781,643) (6,637,513) (5,355,720) (17,208,341) (35,983,217)
Loss for the year from discontinued operations - (195,807) - - (195,807)
Income tax benefit - - - 1,374,655 1,374,655
Consolidated profit/(loss) after tax (6,781,643) (6,833,320) (5,355,720) (15,833,686) (34,804,369)
As at 30 June 2023
Reportable operating segments Lithium Vanadium /Titanium Other Corporate Total
$ $ $ $ $
Total segment assets 6,000,490 48,796,923 15,291,630 27,654,518 97,743,561
Total assets 6,000,490 48,796,923 15,291,630 27,654,518 97,743,561
i) The carrying value of the investment in associate
has been impaired down to its carrying value on a per share basis, resulting
in a $6,599,531 expense (2023: $1,273,045). (See note 22)
Geographical information
The Group operates in four geographical areas being Germany, Finland, Portugal
and Australia (country of domicile).
25. Related party disclosures
(a) Equity interests in related parties
Equity interests in subsidiaries
Details of the percentage of ordinary shares held in subsidiaries are
disclosed in note 23 to the financial statements.
Equity interests in joint arrangements
Details of the percentage of ordinary shares held in joint arrangements are
disclosed in note 21 to the financial statements.
(b) Key management personnel remuneration
Details of Key Management Personnel remuneration are
disclosed on 20-29 of the Remuneration Report.
(c) Key management personnel equity holdings
Fully paid ordinary shares of Neometals Ltd
2024 Balance at Balance on Received on Net other Balance at Balance
01/07/2023 appointment exercise of change 30/06/2024 held
perf rights nominally
No. No. No. No. No. No.
Non-executive directors
S. Cole 1,951,771 - 54,499 250,785 2,257,055 -
D. Ritchie 335,269 - 40,875 47,018 423,162 -
N. Streltsova 280,269 - 40,875 40,143 361,287 -
L. Guthrie 231,357 - 8,175 27,534 267,066 -
Executive director
C. Reed 7,868,589 - 1,491,079 776,411 10,136,079 -
J. Purdie((1)) 471,732 - 40,875 58,967 571,574 -
Other executives
M. Tamlin 983,622 - 604,536 40,000 1,628,158 -
J. Carone 766,462 - 532,844 (129,306) 1,170,000 -
D. Townsend 410,405 - 581,284 (490,642) 501,047 -
M. Gray((2)) 7,770 - - - 7,770 -
C. Reiche((2)) - - - - - -
Total 13,307,246 - 3,395,042 620,910 17,323,198 -
(1) Jenny Purdie was appointed Chief Operating Officer on 24 May 2024
(2) In September 2023, Merrill Gray resigned from the position of Head of
Recycling. In October 2023, Christian Reiche was appointed Head of Recycling.
25. Related party disclosures (continued)
2023 Balance at Balance on Received on Net other Balance at Balance
01/07/2022 appointment exercise of change 30/06/2023 held
perf rights nominally
No. No. No. No. No. No.
Non-executive directors
S. Cole 1,890,160 - 61,611 - 1,951,771 -
D. Ritchie 209,819 - 55,450 70,000 335,269 -
N. Streltsova 224,819 - 55,450 - 280,269 -
J. Purdie 330,072 - 55,450 86,210 471,732 -
L. Guthrie 220,267 - 11,090 - 231,357 -
Executive director
C. Reed 6,882,172 - 986,417 - 7,868,589 -
Other executives
M. Tamlin 535,853 - 447,769 - 983,622 -
J. Carone 515,000 - 394,668 (143,206) 766,462 -
D. Townsend 251,057 430,547 (271,199) 410,405 -
M. Gray - - - 7,770 7,770 -
Total 11,059,219 - 2,498,452 (250,425) 13,307,246 -
Share options of Neometals Ltd
No options were issued to related parties during the current period (2023:
nil).
Performance rights of Neometals Ltd
In the current reporting period the Company granted 2,449,947 (2023: 944,284)
performance rights to executives and KMP pursuant to the Company's Performance
Rights Plan.
Further details of performance rights granted are contained in note 9 to the
financial statements.
Performance rights granted to related parties
The following tables summarises information relevant to the current financial
year in relation to the grant of performance rights to KMP as part of their
remuneration. Performance rights are issued by Neometals Ltd.
25. Related party disclosures (continued)
Name During the Financial Year
Grant date No. No. Fair value at grant date Earliest exercise date Consideration payable on exercise
granted vested
KMP:
N. Streltsova((1)) 12/07/2023 91,175 91,175 45,000 30/06/2024 -
D. Ritchie((1)) 12/07/2023 91,175 91,175 45,000 30/06/2024 -
S. Cole((1)) 12/07/2023 162,089 162,089 80,000 30/06/2024 -
J. Purdie((1)) 12/07/2023 121,567 121,567 60,000 30/06/2024 -
L. Guthrie((1)) 12/07/2023 25,326 25,326 12,500 30/06/2024 -
C. Reed((2)) 11/09/2023 571,512 - 204,030 30/06/2026 -
J. Carone((2)) 11/09/2023 314,759 - 112,369 30/06/2026 -
M. Tamlin((2)) 11/09/2023 275,414 - 98,323 30/06/2026 -
D. Townsend((2)) 11/09/2023 275,414 - 98,323 30/06/2026 -
M. Gray((2)) 11/09/2023 261,840 - 93,477 30/06/2026 -
C. Reiche((2)) 19/01/2024 259,676 - 92,704 30/06/2026 -
Total 2,449,947 491,332 941,726 -
(1) At 30 June 2024 Non-Executive Directors became entitled to
securities whose vesting conditions were the subject to the rules of the
Performance Rights Plan.
(2) The number of performance rights that will actually vest, if
any, is determined by the Company's performance based on Neometals relative
and absolute TSR compared to the comparative group of companies over a 3 year
period and Business Plan strategic objectives.
25. Related party disclosures (continued)
Details of performance rights held by KMP and of shares issued during the
financial year as a result of the vesting of performance rights:
Grant date Fair value of rights at grant date Granted Vested during the financial year Forfeited/ lapsed during the financial year Ordinary shares issued on exercise of rights
$ No. No. No.
KMP:
C. Reed((1)) 7/12/2020 307,659 1,656,754 - 165,675 1,491,079
J. Carone((1)) 7/12/2020 123,686 666,055 - 133,211 532,844
M. Tamlin((1)) 7/12/2020 140,328 755,670 - 151,134 604,536
D. Townsend((1)) 7/12/2020 134,931 726,605 - 145,321 581,284
C. Reed((1)) 11/10/2021 442,592 574,049 - - -
J. Carone((1)) 11/10/2021 181,867 235,885 - - -
M. Tamlin((1)) 11/10/2021 202,074 262,094 - - -
D. Townsend((1)) 11/10/2021 202,074 262,094 - - -
C. Reed((1)) 5/09/2022 276,034 239,904 - - -
J. Carone((1)) 5/09/2022 166,744 144,919 - - -
M. Tamlin((1)) 5/09/2022 145,901 126,804 - - -
D. Townsend((1)) 5/09/2022 145,901 126,804 - - -
M. Gray((1)) 5/09/2022 138,709 120,554 - 120,554 -
N. Streltsova((2)) 4/08/2022 45,000 40,875 - - 40,875
D. Ritchie((2)) 4/08/2022 45,000 40,875 - - 40,875
S. Cole((2)) 4/08/2022 60,000 54,499 - - 54,499
J. Purdie((2)) 4/08/2022 45,000 40,875 - - 40,875
L. Guthrie((2)) 4/08/2022 9,000 8,175 - - 8,175
C. Reed((1)) 11/09/2023 204,030 571,512 - - -
J. Carone((1)) 11/09/2023 112,369 314,759 - - -
M. Tamlin((1)) 11/09/2023 98,323 275,414 - - -
D. Townsend((1)) 11/09/2023 98,323 275,414 - - -
M. Gray((1)) 11/09/2023 93,477 261,840 - 261,840 -
C. Reiche((1)) 19/01/2024 92,704 259,676 - - -
N. Streltsova((3)) 12/07/2023 45,000 91,175 91,175 - -
D. Ritchie((3)) 12/07/2023 45,000 91,175 91,175 - -
S. Cole((3)) 12/07/2023 80,000 162,089 162,089 - -
J. Purdie((3)) 12/07/2023 60,000 121,567 121,567 - -
L. Guthrie((3)) 12/07/2023 12,500 25,326 25,326 - -
Total 3,754,226 8,533,437 491,332 977,735 3,395,042
(1) The number of performance rights that will actually vest, if
any, is determined by the Company's performance based on Neometals TSR
compared to the comparative group of companies over the 3-year period as set
out in the employee's employment contract. As a result of the testing of the
Company's performance over this period no rights vested (2023: 3,209,743).
(2) Under the Performance Rights Plan, Non-Executive Directors were
invited to forgo part of their fees for their services in exchange for
performance rights. At 30 June 2023 all performance rights have vested. As a
result of the testing of the Company's performance over this period, 185,299
rights vested and shares were issued (2023: 239,051).
25. Related party disclosures (continued)
(3) Under the Performance Rights Plan, Non-Executive Directors were
invited to sacrifice part of their fees for their services in exchange for
performance rights. At 30 June 2024 all performance rights have vested.
The performance rights granted entitle the grantee to one fully paid ordinary
share in Neometals Ltd for nil cash consideration on satisfaction of the
vesting criteria.
(d) Transactions with other related parties
Other related parties include:
· The parent entity;
· Associates;
· Joint ventures in which the entity is a venturer;
· Subsidiaries;
· Key Management Personnel of the Group; and
· Other related parties.
The Group has provided loans to its joint venture, Reed Advanced Materials Pty
Ltd, and equity contributions to its joint ventures, Primobius GmbH, Recycling
Industries Scandinavia AB and ACN 630 589 507 Pty Ltd (see note 21)
Transactions involving the parent entity
The directors elected for wholly-owned Australian entities within the Group to
be taxed as a single entity from 1 July 2003.
No other transactions occurred during the financial year between entities in
the wholly owned Group.
(e) Controlling entities
The ultimate parent entity of the Group is Neometals Ltd, a company
incorporated and domiciled in Australia.
26. Auditors remuneration
Details of the amounts paid or payable to the auditor for the audit and other
assurance services during the year are as follows:
2024 2023
$ $
Audit services - Deloitte Touche Tohmatsu
Fees to the group auditor for the audit or review of the statutory financial 256,420 289,006
reports of the Company, subsidiaries and joint operations
Fees for other assurance and agreed-upon procedures under other legislation or - 14,621
contractual arrangements - Australia
Total remuneration of Deloitte Touche Tohmatsu 256,420 303,627
Audit services - Other firms
Fees for auditing the financial reports of any controlled entities - 24,684
Total remuneration of other firms - 24,684
27. Notes to the statement of cash flows
(a) Reconciliation of cash and cash equivalents
For the purposes of the cash flow statement, cash and cash equivalents
includes cash on hand and in banks and investments in money market
instruments, net of outstanding bank overdrafts. Cash and cash equivalents
at the end of the financial year as shown in the Cash Flow Statement is
reconciled to the related items in the statement of financial position as
follows:
2024 2023
$ $
Cash and cash equivalents at the end of the financial year 9,103,833 24,438,695
9,103,833 24,438,695
(b) Reconciliation of profit / (loss) for the period to net cash flows
from operating activities
2024 2023
$ $
(Loss) / Profit for the year (69,112,917) (34,804,369)
Impairment (reversal)/expense 12,820,053 3,989,748
Loss on disposal of financial assets 274,140 150,247
Loss on disposal of subsidiary - 212,473
Share of loss in associate 438,965 3,412,514
Share of loss in Joint Venture 8,616,266 7,298,801
Net (profit) / loss on financial assets measured at FVTPL 778,241 512,769
Interest received on investments (526,963) (1,056,585)
Finance costs recognised in profit or loss 102,305 29,859
Depreciation and amortisation of non-current assets 491,176 523,023
Equity settled share-based payment 894,935 1,747,437
Loss from discontinued operation 30,945,885 -
Net foreign exchange (gain)/loss 48,563 (4,204)
(Increase) / decrease in assets:
Current receivables 1,609,307 (1,513,597)
Other 47,987 49,748
Increase / (decrease) in liabilities:
Current payables (1,706,013) (131,597)
Deferred tax liability - (782,904)
Provisions and other 764,512 (31,905)
Net Cash used in operating activities (13,513,558) (20,398,542)
28. Financial instruments
(a) Financial risk management objectives
The Consolidated Entity does not enter into derivative financial instruments
for speculative or hedging purposes.
(b) Significant accounting policies
Details of the significant accounting policies and methods adopted, including
the criteria for recognition, the basis of measurement and the basis on which
income and expenses are recognised, in respect of each class of financial
asset, financial liability and equity instrument are disclosed in note 2 to
the financial statements.
(c) Interest rate risk
The following tables detail the Group's exposure to interest rate risk:
2024 Weighted Variable Maturity dates Non Total
average interest interest
effective rate bearing
interest
rate
% % $ $
Less than 1-5 More than 5
1 year years years
$
$ $
Financial assets:
Cash and cash equivalents AUD 2.06% - 5,399,939 - - - 5,399,939
Cash and cash equivalents EUR 0.00% - 3,652,724 - - - 3,652,724
Cash and cash equivalents USD 0.00% - 7,094 - - - 7,094
Cash and cash equivalents GBP 0.00% - 44,076 - - - 44,076
Bond term deposits ((i)) 4.92% - 620,712 - - - 620,712
Cash deposits trust 0.00% - - - - - -
Trade and other receivables 0.00% - - - - 967,858 967,858
Financial liabilities:
Trade payables((ii)) - - - - - 340,789 340,789
Lease liability 7.77% - 128,296 872,262 3,110,363 - 4,110,921
(i) The balances represent two term deposits that are restricted
in their use and are classified in the current reporting period as other
financial assets. Additional information on all other term deposits is
provided at notes 11 and 27(b). The financial assets have contractual
maturities of less than one year, however they are classified as non-current
in the statement of financial position as they are not accessible to the Group
due to restrictions placed on accessing the funds.
(ii) Non interest bearing liabilities are due within 30 days.
28. Financial instruments (continued)
2023 Weighted Variable Maturity dates Non Total
average interest interest
effective rate bearing
interest
rate
% % $ $
Less than 1-5 More than 5
1 year years years
$
$ $
Financial assets:
Cash and cash equivalents AUD 3.77% - 24,013,096 - - - 24,013,096
Cash and cash equivalents EUR 0.00% - 208,846 - - - 208,846
Cash and cash equivalents USD 0.00% - 127,552 - - - 127,552
Cash and cash equivalents GBP 0.00% - 89,199 - - - 89,199
Bond term deposits ((i)) 4.17% - 200,000 - - - 200,000
Cash deposits trust 0.00% - - - - - -
Trade and other receivables 0.00% - - - - 2,031,604 2,031,604
Financial liabilities:
Trade payables - - - - - 2,190,866 2,190,866
Lease liabilities 7.77% - 285,625 652,049 - - 937,674
(i) The balances represent two term deposits that are restricted in
their use and are classified in the current reporting period as other
financial assets. Additional information on all other term deposits is
provided at notes 11 and 27(b). The financial assets have contractual
maturities of less than one year, however they are classified as non-current
in the statement of financial position as they are not accessible to the Group
due to restrictions placed on accessing the funds.
(d) Credit risk management
Credit risk refers to the risk that counterparty will default on its
contractual obligations resulting in financial loss to the consolidated
entity. The consolidated entity has adopted a policy of only dealing with
credit-worthy counterparties and obtaining sufficient collateral where
appropriate as a means of mitigating the risk of financial loss from defaults.
The consolidated entity exposure and the credit ratings of its counterparties
are continuously monitored and the aggregate value of transactions concluded
is spread amongst approved counterparties.
The consolidated entity does not have any significant credit risk exposure to
any single counterparty or any group of counterparties having similar
characteristics other than the Joint Venture. The credit risk on liquid funds
is limited because the counterparties are banks with high credit-ratings
assigned by international credit-rating agencies.
(e) Liquidity risk management
Ultimate responsibility for liquidity risk management rests with the board of
directors, who have built an appropriate liquidity risk management framework
for the management of the Group's short, medium and long-term funding and
liquidity management requirements. The Group manages liquidity risk by
maintaining adequate reserves and banking facilities, and by continuously
monitoring forecast and actual cash flows and matching the maturity profiles
of financial assets and liabilities.
The undiscounted lease liabilities balance is $4,110,921, split between
$128,296 with a maturity date of less than 1 year, $872,262 with a maturity
date of 1-5 years, and $3,110,363 with a maturity date of more than 5 years.
In addition to financial liabilities in note 14, the Company is required to
meet minimum spend commitments to maintain the tenure over the Company's
mineral exploration areas as described in note 19.
(f) Fair value
The carrying amount of financial assets measured at amortised cost recorded in
the financial statements approximates their respective fair values.
Financial assets carried at fair value through profit or loss comprise
investments predominantly in Australian companies. Their fair value is
determined using key inputs of quoted bid prices in an active market
multiplied by the number of shares held, which is Level 1 in the fair value
hierarchy. Where quoted prices in an active market are unable to be used to
determine fair value, alternative valuation methods are used to most
accurately represent the equities fair value which for the investments held by
the entity include other observable inputs and is therefore categorised as
level 3 on the fair value hierarchy.
28. Financial instruments (continued)
Other than the investments held at fair value, the Group does not hold any
instruments that are measured at fair value. There have been no transfers
between fair value classes during the year. The sensitivity analysis below has
been calculated based on the exposure to equity price risk at the end of the
reporting period for financial assets carried at fair value through profit or
loss. A 25 percent increase and decrease has been used to assess the
sensitivity of the equity price risk and represents management's assessment of
a reasonably possible change in equity pricing.
If equity prices had been 25 percentage higher/lower and all other variables
were held constant, the Group's profit for the year ended 30 June 2024 would
decrease/increase by $996,779 (2023: $1,298,386).
(g) Capital management
The board's policy is to endeavour to maintain a strong capital base so as to
maintain investor, creditor and market confidence and to sustain future
development of the business. The Group sources any additional funding
requirements from either debt or equity markets depending on the market
conditions at the time the funds are sourced and the purpose for which the
funds are to be used. The Group is not subject to externally imposed capital
requirements.
(h) Interest rate risk management
The Group is exposed to interest rate risk as the Group has funds on deposit
as security for the head office lease.
The sensitivity analysis below has been calculated based on the exposure to
interest rates at the end of the reporting period. A 50 basis point increase
and decrease has been used when reporting the interest rate risk and
represents management's assessment of the potential change in interest rates.
If interest rates had been 50 basis points higher/lower and all other
variables were held constant, the Group's profit for the year ended 30 June
2024 would decrease/increase by $48,917 (2023: decrease/increase $123,193).
This is mainly attributable to the Group's exposure to interest rates on the
maturity of its term deposits.
29. Contingent liabilities
The Group has no contingent liabilities as at 30 June 2024 (2023: nil)
30. Events after the reporting period
On 19 August 2023, Neometals announced the successful completion of a
subscription agreement with existing long-term shareholder Mr William Robert
Richmond for approximately US$3m through the issue of 66,666,666 new ordinary
fully paid shares. The shares were issued on 20 August 2024.
On 22 August 2024, Neometals announced a strategy update for a restructure of
the company to right size the organisation and its underlying cost base to
reflect a new strategic refocus.
On 16 September 2024, Neometals 88% owned entity, Recycling Industries
Scandinavia AB ("RISAB"), executed a project agreement with EIT RawMaterials
GmbH to support the development of the Finnish vanadium recovery project
("VRP1") via a €0.5M (c. A$829k) grant to RISAB's 100% owned VRP1 holding
company, Novana Oy ("Novana").
On 17 September 2024, Neometals was served with documents relating to
proceedings in the Federal Court of Australia which have been commenced
against it by an employee affected by the corporate restructure announced on
22 August 2024.
On 23 September 2024, Neometals announced a gold exploration target related to
the Barrambie Project.
Other than stated above, no matters or circumstances have arisen since the end
of the financial year that have significantly affected, or may significantly
affect the operations, results of operations or state of affairs of the Group
in subsequent financial years.
Consolidated entity disclosure statement
As at 30 June 2024
The Consolidated Entity Disclosure Statement has been prepared in accordance
with the Corporations Act 2001 and includes required information for each
entity that was part of the consolidated entity as at the end of the financial
year.
Section 295 (3A) of the Corporations Act 2001 defines tax residency as having
the meaning in the Income Tax Assessment Act 1997. The determination of tax
residency involves judgement as there are currently several different
interpretations that could be adopted, and which could give rise to a
different conclusion on residency.
Body Corporate Tax residency
Name of entity Entity Type
Place formed or incorporated % of share capital held Australian or foreign Foreign jurisdiction
Neometals Ltd Body Corporate Australia N/A Australia(1) N/A
Australian Titanium Pty Body Corporate Australia 100 Australia(1) N/A
Alphamet Management Pty Ltd Body Corporate Australia 100 Australia(1) N/A
Inneovation Pty Ltd Body Corporate Australia 100 Australia(1) N/A
Neometals Energy Pty Ltd Body Corporate Australia 100 Australia(1) N/A
Neomaterials Pty Ltd Body Corporate Australia 100 Australia(1) N/A
Neometals Investments Pty Ltd Body Corporate Australia 100 Australia(1) N/A
Urban Mining Pty Ltd Body Corporate Australia 100 Australia(1) N/A
Adamant Technologies Pty Ltd Body Corporate Australia 100 Australia(1) N/A
Avanti Materials Ltd Body Corporate Australia 100 Australia(1) N/A
Ecometals Pty Ltd Body Corporate Australia 100 Australia(1) N/A
Avanti Minerals Ltd Body Corporate Australia 100 Australia(1) N/A
Recycling Industries Scandinavia AB Body Corporate Sweden 88 Foreign Sweden
Novana Oy Body Corporate Finland 88 Foreign Finland
( )
(1) This entity is part of the tax-consolidated group under Australian
taxation law, for which Neometals Ltd is the head entity.
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. END FR GRGDCRSDDGSLRecent news on Neometals
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