REG - Neometals Ltd - Half-year Report
14/03/2024 08:00
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RNS Number : 8490G Neometals Ltd 14 March 2024
14 March 2024
Neometals Ltd
("Neometals" or "the Company")
Half Year Report for the 6 months ended 31 December 2023
Emerging sustainable battery materials producer, Neometals Ltd (ASX: NMT)
("Neometals" or the "Company"), is pleased to advise of the release of the
financial report of the Company and its subsidiaries (the "Group" or the
"Consolidated Entity") for the half-year ended 31 December 2023 (the "Half
Year Report").
A copy of the Company's Half Year Report, extracts from which are set out
below, is also available on the Company's website at www.neometals.com.au .
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 Limited - NOMAD & Broker
Neil McDonald +44 (0)131 220 9771
Peter Lynch +44 (0)131 220 9772
Adam Rae +44 (0)131 220 9778
Camarco PR + 44 (0)203 757 4980
Gordon Poole
Emily Hall
Lily Pettifar
REVIEW OF OPERATIONS
COMPANY OVERVIEW
Neometals is focussed on commercialising three environmentally-friendly
processing technologies that produce critical and strategic battery materials
at lowest quartile costs with minimal carbon footprint.
Through strong industry partnerships, Neometals is demonstrating the economic
and environmental benefits of sustainably producing lithium, nickel, cobalt
and vanadium from lithium-ion battery recycling and steel waste recovery. This
reduces the reliance on traditional mine-based supply chains and creates more
resilient, circular supply to support the energy transition.
The Company's three core business units are exploiting the technologies under
principal, joint venture and licensing business models:
· Lithium-ion Battery ("LiB") Recycling (50% technology) -
Commercialisation via Primobius GmbH JV (NMT 50% equity). All plants built by
Primobius' co-owner (SMS group 50% equity), a 150-year-old German plant
builder. Providing recycling service as principal in Germany and commenced
plant supply and licensing activities as technology partner to Mercedes-Benz.
Primobius targeting first commercial, fully integrated, 21,000tpa plant offer
to Canadian company Stelco in the JunQ 2025;
· Lithium Chemicals (70% technology) - Commercialising 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. Co-funding Pilot Plant trials in 2023 with
planned Demonstration Plant trials and evaluation studies in 2024 for
potential 25,000tpa LiOH operation in Portugal; and
· Vanadium Recovery (100% technology) - aiming to produce high-purity
vanadium pentoxide from processing of steelmaking by-product ("Slag") at
lowest-quartile operating cost. Targeting partnerships with steel makers and
participants in the vanadium chemical value chain under a low-risk, low-capex
technology licensing business model.
Figure 1: Location map of Neometals' Projects together with partner
developments
CORE BATTERY MATERIALS BUSINESS UNITS
Lithium Battery Recycling
Intellectual Property via ACN 630 589 507 Pty Ltd- NMT 50%, SMS
50%)
Commercialising via Primobius GmbH, NMT 50% SMS group GmbH 50%
Primobius GmbH ("Primobius") is the 50:50 incorporated joint venture
established in 2020 to co-fund the commercialisation of the lithium-ion
battery recycling technology ("LiB Recycling Technology") originally developed
by Neometals.
The LiB Recycling Technology recovers materials contained in LiB production
scrap and end-of-life cells that might otherwise be disposed of in land fill.
Current LiB recycling processes predominantly rely on high carbon emission
pyrometallurgy processes. Primobius' two stage process recovers nickel,
cobalt, lithium and manganese battery materials (and physically recovers
metals and plastics) into saleable products that can be reused in the LiB
supply chain. The LiB Recycling Technology prioritises maximum safety,
environmental sustainability, and product recoveries, to support the circular
economy and decarbonisation.
Figure 2 - High level flowsheet showing the movement of materials from
Shredding and Beneficiation
('Spoke') through to refining ('Hub') stages for the LiB Recycling Technology.
Intellectual Property Status
During the period the LiB Recycling Technology IP holding company, ACN 630 589
507 Pty Ltd ("ACN630"), was granted three national phase patents (in
Australia, Singapore and Eurasia). Fourteen other national phase patents are
at various stages of prosecution globally.
Commercialisation Status
Primobius' current business model contemplates the following revenue sources:
1. Disposal fees (for LiBs supplied by multiple waste aggregators
delivering predominantly whole modules) and sale of recovered products
(metallic scrap, chemical intermediates and chemicals purchased by various
recyclers and smelting customers) from its Disposal Operation in Hilchenbach,
Germany;
2. Mechanical equipment and plant supply; and
3. Royalties from licensing proprietary, patented recycling process.
Hilchenbach Disposal Operation
The Spoke section of the demonstration plant in Hilchenbach Germany
("Hilchenbach Spoke") is providing commercial LiB disposal services and the
hydrometallurgical refinery 'Hub' operates as a demonstration plant for
discrete customer trials, research and development.
The Hilchenbach Spoke produces intermediate mixed nickel/cobalt product
("Black Mass"). The typical LiB contains approximately 48% Black Mass which
Primobius is recovering at high levels and selling to a number of global
offtakers on a spot basis with pricing set according to nickel and cobalt
content.
Mechanical Equipment and Plant Supply
Primobius' key near-term commercial agreements are summarised below:
· A Cooperation Agreement with Mercedes-Benz's ("Mercedes")
("Mercedes Cooperation") for the engineering, equipment supply and
installation for a 2,500tpa fully integrated, closed-loop recycling plant
("Mercedes Pilot Plant"), 5 year research, collaboration and development of an
industrial-scale solution for Mercedes(( 1 )); and
· Spoke and Hub equipment and plant supply agreements relating to the
Mercedes Pilot Plant.
Technology Licensing
· Technology licensing and joint venture option agreements with a
subsidiary of Stelco Inc. ("Stelco") ("Stelco Agreements") which plans to
secure large volumes of end-of-life vehicles in North America for scrap steel
and recycle LiBs, with offer of maiden 21,000tpa integrated plant ("Stelco
Spoke" followed by "Stelco Hub") expected before 30 June 2025 (( 2 (#_ftn2)
)).
· Three exclusive licences have been issued for Scandinavia, the
Balkans and Italy to third-party licensees and one non-exclusive licence to
the UK. Neometals is the largest individual shareholder in the licensees and
ACN630 is entitled to receive a 10% gross revenue royalty from the technology
licences.
Activity Summary
During the period, Primobius made significant technical and commercial
progress highlighting its potential to produce battery materials with
exceptionally low CO(2) footprint. It also received its second plant package
purchase order from Mercedes subsequent to period end on 10 January 2024. The
offer and award of mechanical equipment package plant supply agreements is
underpinning a growing order book consistent with the Company's preferred
plant supply and technology licensing/royalty business model. Primobius
remains busy with evaluation, engineering and design activities associated
with the above.
Significant activities comprised:
1 (for full details refer to Neometals ASX announcement headlined
"Cooperation Agreement with Mercedes Benz" released on 13(th) May 2022)
1 (for full details refer to Neometals ASX announcement headlined "Primobius
Commercial Update" released on 22nd December 2023)
Technical
· Results of trials on a new lithium recovery option for Primobius
Hub plant packages confirmed lithium (in precipitated lithium fluoride)
recoveries exceeding 93% with purity of 95%. This process improvement option
can replace Primobius' current lithium solvent-extraction circuit which
produces lithium sulphate ("LiSO(4)") and is expected to reduce both operating
and capital costs. Lithium Fluoride has historically traded at a significant
premium to lithium carbonate;
· LiB recycling demonstration trial generated battery-grade nickel
sulphate exceeding Chinese cathode producer specifications from recycling EV
batteries; and
· Positive results were announced from an independent ISO-compliant
cradle-to-gate life cycle assessment ("LCA") completed by Minviro Ltd using
detailed engineering data from operations and demonstration trials:
o The LCA focused on Primobius' production of key battery materials
(including lithium fluoride, nickel sulphate hexahydrate and cobalt sulphate
heptahydrate) and confirmed its integrated hydrometallurgical refining process
to have a significantly lower carbon footprint than incumbent production
pathways in terms of global warming potential ("GWP"). Total GWP was confirmed
to be approximately 85% lower than comparisons with predominant EV supply
chains that start with primary mined nickel, cobalt and lithium sources.
Figure 3 - Comparison of GWP impact for producing key materials in Primobius'
hydrometallurgical product 'basket'
versus those same refined chemicals that originated from primary mined
extraction. Refining data for chemicals
was derived using Chinese (cobalt and lithium) and Indonesian (nickel)
operating benchmarks
which represent the largest manufacturing jurisdictions for the respective
primary products.
Commercial
· In January, Primobius was awarded a purchase order (value ~
€18.8M (~ A$30.8M)) from Mercedes for the supply of a hydrometallurgical
refining Hub for installation at its Kuppenheim Pilot Plant operation in
Germany. PO covers fabrication, installation and commissioning of the Hub
which will refine intermediate products from the 2,500tpa shredding 'Spoke'
currently being fabricated and installed;
· Primobius amended the technology licence and option agreements
with 1340455 B.C. LTD, Stelco's lithium-ion battery recycling special purpose
vehicle ("Stelco SPV"):
§ The changes reflect Stelco's preferred business case to start up as a
fully-integrated operation (as opposed to staggered Spoke operations followed
by Hub to make integrated facility) to provide the carmakers, who supply the
end-of-life EVs, with a secure supply of key battery cathode chemicals. The
option agreement amendment extends the option expiry date for Primobius to
buy-in to Stelco SPV until 30 June 2025. The technology licence amendment
changes the product offering from a shredding spoke to a hydrometallurgical
refinery hub and the product readiness date to 30 June 2025. Primobius is
working to achieve product readiness for its commercial spoke plants by April
2024. Primobius plans to offer a fully-integrated plant supply contract to the
Stelco SPV (and other customers) in the June Q 2025 following completion of a
detailed engineering study and final factory acceptance testing of the
fully-integrated Mercedes-Benz 2,500tpa pilot plant; and
· Ongoing business development activities to build a global
pipeline of potential future recycling plants.
Corporate
· Continued recruitment activities to expand the Primobius
technical, operational, commercial and management teams in line with corporate
milestones associated with offering mechanical plant and equipment package
supply contracts as demand grows.
· Appointment of dedicated Primobius CEO, Dr Michel Siemon on 23
August 2023; and
· Appointment of former Mercedes and VW electric vehicle and
battery recycling expert, Christian Reiche to lead Neometals' LiB recycling
activities.
Figure 8 - LHS, newly appointed Primobius CEO, Michel Siemon and RHS Neometals
newly appointed 'Head of Recycling', Christian Reiche
Lithium Chemicals
(Intellectual Property via Reed Advanced Materials Pty Ltd ("RAM") - NMT 70%,
Mineral Resources Ltd 30%)
RAM co-funding pilot scale trials with Bondalti Chemicals SA (and related
entity)
Neometals, through RAM, is commercialising its proprietary process (ELi™
Processing Technology ("ELi™")) to produce lithium hydroxide from lithium
chloride solutions using electrolysis. Neometals has used ELi™ to convert
lithium chloride solutions produced from both natural spodumene and brine
feedstocks at semi-pilot scale. ELi™ has the flexibility to produce lithium
hydroxide and lithium carbonate and at a significantly lower operating cost
than for conventional commercial production processes. ELi's key economic
advantage lies in the potential to replace costly, imported bulk reagents for
traditional carbonation and causticising processing steps with electricity and
low-cost internally generated reagents. RAM holds 19 granted patents in the
hard rock and brine producing countries and has a further 12 pending patent
applications.
Evaluation studies in 2016 and 2023 indicated the potential for ELi™ to
significantly reduce the operating cost (~50%) and carbon footprint associated
with production of lithium hydroxide from lithium brine sources.
Figure 6 - Schematic showing a comparison of the conventional flowsheet for
the production of lithium hydroxide from brines with the patented Eli™
process.
Intellectual Property Status
During the period RAM was granted a national phase patent in Argentina and
advised of the intention to grant one patent in the USA. RAM holds 18 granted
patents and 14 patents pending globally at various stages of prosecution
across three patent families covering hard rock and brine feedstock
flowsheets.
Commercialisation Status
Estarreja Lithium Refinery Project
In the December quarter 2021, RAM entered into a Co-operation Agreement ("ELi
Co-operation") with Portugal's largest chlor-alkali producer, Bondalti
Chemical SA. Bondalti is part of the Jose De Mello Group, one of Portugal's
largest conglomerates, family controlled and founded in 1898. Bondalti and RAM
have co-funded evaluation activities to assess the feasibility for
construction and operation of a commercial-scale lithium refinery ("Estarreja
Lithium Refinery" or "ELR"") adjacent to Bondalti's chlor-alkali operations in
Estarreja, Portugal.
With the original Pilot Trial activities nearing conclusion, and Bondalti's
parent incorporating a dedicated lithium subsidiary, Lifthium Energy SA
("Lifthium"), the Parties allowed the current ELi™ Cooperation to lapse on
the 30(th) September 2023. RAM and Bondalti are continuing to co-fund the
agreed Pilot Trials in parallel with advanced discussions for a new
cooperation agreement which is intended to address the completion of
evaluation activities, construction of a demonstration plant and Front-End
Engineering and Design Study ("ELi™ FEED Study") as well as key commercial
terms for licensing and operation.
Activity Summary
The ELR opportunity was progressed during the period with strong focus on
Pilot Trial activities and sourcing feedstocks for future demonstration and
longer-term commercial operations. A report based on trial results to provide
an updated to the Class 3 engineering and cost study ("Cl.3 ECS") will be
prepared following Pilot Trials.
Technical
· Completed Pilot Trials comprising 3 stages being 'purification',
'electrolysis' and 'crystallisation'. The purification test-work at SGS in
Canada (processing concentrated and purified salar brine (6% Li basis)) was
completed during the period and preparations are underway for the follow-on
electrolysis stage;
· The purification testwork, conducted on a salar brine feed source,
confirmed earlier bench-scale testing by removing >97% of brine feed source
impurities. The result is the production of a purified brine solution that is
suitable feed for the subsequent Pilot Trial electrolysis stage; and
Commercial
· Commercial dialogues were progressed with aspiring and existing
producers of lithium brine concentrates to develop terms of supply to the ELR.
This included ongoing discussions with the commercial brine source feed
suppliers to the planned Demonstration Plant;
· Commercial discussions progressed with potential lithium
hydroxide offtake partners for the ELR; and
· Commercial discussions with potential ELi licensees in areas
outside Portugal and Spain.
Corporate
· Advanced negotiations for a new Cooperation Agreement with
Lifthium Energy SA to replace the expired RAM-Bondalti Cooperation Agreement
and to reflect the current status of activities and the parties' commercial
intentions.
Vanadium Recovery
(Intellectual Property via Avanti Materials Ltd - NMT 100%)
Commercialising via Recycling Industries Scandinavia AB ("RISAB") - 72.5% NMT
Neometals is commercialising its sustainable, proprietary vanadium recovery
process ("VRP Technology") to produce vanadium products for battery and
aerospace alloying applications from stockpiles of vanadium-bearing steel
making by-product. The unique selling points of the technology are:
· A processing flowsheet utilising conventional equipment at
atmospheric pressure, mild-temperatures, and non-exotic materials of
construction (refer to figure 7);
· Potential lowest-quartile operating costs 3 (#_ftn3) from
processing steelmaking slags without upstream mining costs/risk/carbon
footprint (refer to figure 8); and
· Likely very low or net zero greenhouse gas footprint given the
absence of mining and a processing route requiring the mineral sequestration
of CO(2) into a potentially saleable carbonate by-product which sequesters
CO(2) (refer to figure 9).
Figure 7 - High level flowsheet of Neometals VRP Technology.
Figure 8 - Vanadium Cost Curve.
Figure 9 - Carbon Footprint for VRP1 at Pori, Finland highlighting benefit of
sequestering CO2 in by-product.
Intellectual Property Status
During the period the Vanadium Recovery IP holding company, Avanti Materials
Ltd, had a request for national phase examinations of its foundation patent
from two countries and has separately lodged an additional national phase
patent for the recovery of Vanadium from leach residues in 10 countries.
Commercialisation Status
Vanadium Recovery Project 1 - Finland
Neometals and unlisted Scandinavian-focused explorer, Critical Metals Ltd
("Critical"), are jointly evaluating the feasibility of recovering high-purity
vanadium pentoxide ("V(2)O(5)") from high-grade vanadium-bearing steel
by-product ("Slag") in Scandinavia. Neometals has funded and managed
evaluation activities earning a 72.5% interest in an incorporated JV RISAB
with Critical.
In March 2023, Neometals announced results of a feasibility study ("VRP1 FS")
based on the AACE® Class 3 engineering cost study completed by Nordic
engineering group Sweco Industry OY. The VRP1 FS confirmed the potential for
lowest-quartile operating costs in a high-purity vanadium chemical operation
with a low-to-negative carbon footprint(4).
A take-or-pay offtake agreement has been struck with Glencore International AG
and the VRP1 is at the financing stage ahead of a decision to construct and
produce high-purity vanadium pentoxide from high-grade vanadium-bearing steel
making by-product ("Slag") under a feedstock supply agreement with SSAB EMEA
AB and SSAB Europe Oy (collectively "SSAB").
During the period Neometals provided notice to its partner in the VRP1 project
confirming it does not wish to proceed with providing equity for the
construction of a slag processing facility in Finland.
Neometals has requested that RISAB consider alternative methods of funding,
including outright sale of the VRP1 project holding company. Neometals has
reverted to a technology licensing business model to commercialise its
proprietary VRP Technology. Neometals is engaging directly with potential
technology licensing partners as well as assisting RISAB in the process of
seeking funding for the project.
While RISAB continues to evaluate funding alternatives for the project the
European Investment Bank has approved provision of debt financing for the
project and Business Finland has approved the provision of a 15 million Euro
grant. Both are conditional on equity financing stream and other condition
precedents applicable to transactions of this type.
UPSTREAM - MINERAL EXTRACTION
Barrambie Titanium/Vanadium Project
(Neometals 100%)
The Barrambie Vanadium and Titanium Project in Western Australia ("Barrambie")
is one of the largest vanadiferous-titanomagnetite ("VTM") Mineral Resources
globally (280.1Mt at 9.18% TiO(2) and 0.44% V(2)O(5)), containing the world's
second highest-grade hard rock titanium Mineral Resource (53.6Mt at 21.17%
TiO(2) and 0.63% V(2)O(5)) and high-grade vanadium resource (64.9Mt at 0.82%
V(2)O(5) and 16.9% TiO(2)) subsets (referred to as the Eastern and Central
Bands respectively) based on the latest Neometals 2018 Mineral Resource
Estimate(( 4 (#_ftn4) )).
Barrambie is located approximately 80km north-west of Sandstone in Western
Australia ("WA") and the Mineral Resource is secured under a granted mining
lease. Neometals secured environmental approval in 2012 to mine and construct
a 3.2 Mtpa processing plant (Ministerial Statement 911), extended the
timeframe for implementation in 2019 (Ministerial Statement 1119) and is
currently in the process of securing a further extension of the timeframe for
project implementation. The project also has a granted mining proposal to
extract approximately 1.2Mtpa of mineralisation.
The current stage of development sees Neometals deeply engaged with
third-party titanium producers and mining services companies in relation to
offtake, equity investment and contract mine-to-port solutions.
Activity Summary
During the period the following activities were undertaken:
Technical
· Metallurgical variability assessments completed in relation to
comminution and grind size determination completed. Bulk metallurgical
variability assessments temporarily paused;
· Regional exploration completed across Barrambie tenure to maintain
tenements in good standing;
· Completion of seismic surveys, rehabilitation of drill lines, soil
analysis and rock chip sampling, and a geological database risk assessment;
· Flora and vegetation studies continued during the period. Field
programs to assess the potential of saline water prospects continued with next
steps dependant on cultural heritage surveys. Baseline monitoring including
dust, weather and water table depth continues; and
· 3 day on-country meeting held with Yugunga-Nya community and elders
to discuss the project and request cultural heritage surveys.
Commercial
During the period, Neometals announced that its wholly owned subsidiary
Australian Titanium Pty Ltd was unable to advance from offtake term sheet to
binding take or pay offtake agreement with Jiuxing Titanium Materials Co
("Jiuxing"). The parties were unable to agree mutually acceptable terms in
relation to offtake and equity funding. Regrettably, the broader macroeconomic
backdrop has required Jiuxing to adjust its production plans and shelve
further Barrambie related activities. The Company is continuing its engagement
with third-party titanium producers and mining services companies in relation
to offtake, equity investment and contract mine-to-port solutions.
Corporate
In parallel with its evaluation and commercial activities, Neometals continues
to assess the optimal strategy to return Barrambie value to shareholders. This
includes ongoing engagement with third-party titanium producers and mining
services companies in relation to offtake, equity investment and contract
mine-to-port solution.
CORPORATE
Financial
Redivium Limited (ASX:RIL) (formerly Hannans Ltd) (Lithium-ion Battery
Recycling)
As at 31 December 2023 Neometals held 879,812,014 ordinary fully paid shares
(~26% of the issued capital) in RIL on an undiluted basis. RIL holds exclusive
technology licences to Neometals' original LiB Recycling Technology in Italy
and the Balkans, a non-exclusive licence in the United Kingdom and it is
earning a 50% interest in an exclusive licence for Scandinavia held by
Critical Metals Limited.
Critical Metals Ltd (Unlisted, Scandinavian Lithium/Cobalt/Base Metals)
Neometals holds ~18.4% of unlisted public company Critical Metals Ltd, a
company which holds an exclusive licence to Neometals' original LiB Recycling
Technology in Scandinavia and 27.5% interest in RISAB. During the period,
Neometals reviewed the carrying value of the investment in Critical Metals
Ltd. The assessment resulted in a fair value adjustment of the carrying value
down to nil as at 31 December 2023. Neometals will continue to monitor the
company's progress and assess whether impairment reversals may occur in future
reporting periods.
Other Investments
The market value of the Company's other investments as at 31 December 2023
totalled $2.4 million. This excludes the abovementioned investments in
Redivium and Critical Metals Ltd.
Finances
Cash and term deposits on hand as of 31 December 2023 totalled A$19.4 million.
The Company has net receivables and investments totalling approximately $15.4
million.
During the December Quarter the Company initiated various austerity measures.
There has been a reduction in both administration costs and head count, with
administration and corporate costs down 19% quarter on quarter. In addition,
the Directors and Key Management Personnel have agreed to a decrease in
Non-Executive Director fees by 20% from 1 January and the removal of STI
arrangements for FY24.
Issued Capital
During the period the Company issued:
- 6,060,793 ordinary shares to eligible employees, consultants and
Non-executive Directors following the vesting and exercise of performance
rights pursuant to the Neometals Ltd performance rights plan (2022:
4,364,781).
- 4,375,765 performance rights to Neometals employees, consultants
and Non-executive Directors (2022: 1,705,325) for nil cash consideration.
- 63,888,347 ordinary shares were issued through a capital raise
during the period (2022: nil).
During the period 754,650 performance rights were cancelled relating to
Neometals employees (2022: nil). 1,186,779 performance rights lapsed relating
to Neometals employees (2022: 956,432).
The total number of shares on issue as at 31 December 2023 was 622,690,316.
Dividends
Dividends issued during the half year period: nil (2022: nil).
Events Subsequent to Balance Date
On 10 January 2024, Neometals announced that Primobius had received a purchase
order from Mercedes-Benz for the hydrometallurgical hub plant to complete its
lithium-ion battery recycling facility.
Subsequent to reporting date, the Company has commenced workstreams to
rationalise expenditure on upstream mineral portfolio, which may lead to the
divestment of certain non-core assets.
No other matters have arisen since 31 December 2023 that would be likely to
materially affect the operations of the Group, or its state of affairs which
have not otherwise been disclosed in this financial report.
Compliance Statement
The information in this report that relates to Mineral Resource Estimates for
the Barrambie Vanadium/Titanium Project is extracted from the ASX Announcement
listed below, which is also available on the Company's website at
www.neometals.com.au (http://www.neometals.com.au) .
17/04/2018 Barrambie - Updated Barrambie Mineral Resource Estimate
The Company confirms that it is not aware of any new information or data that
materially affects the information included in the original market
announcements and that all material assumptions and technical parameters
underpinning the estimates in the market announcements continue to apply and
have not materially changed. The Company confirms that the form and context in
which the Competent Persons' findings are presented have not been materially
modified form the original market announcements.
AUDITOR'S INDEPENDENCE DECLARATION
The auditor's independence declaration is included on page 14 of the half-year
report.
Signed in accordance with a resolution of the directors made pursuant to
s.306(3) of the Corporations Act 2001.
On behalf of the directors,
Christopher Reed
Managing Director
Condensed consolidated statement of profit or loss and other comprehensive
income
for the half-year ended 31 December 2023
31 Dec 2023 31 Dec 2022
$ $
Continuing operations
Foreign exchange (loss)/gain (168,027) 2,701
Interest income 296,408 491,101
Other income 5,562 84,296
Employee expenses (4,343,873) (5,297,909)
Depreciation expenses (244,813) (241,562)
Finance costs (34,397) (6,637)
Occupancy expenses (129,066) (98,429)
Marketing expenses (148,408) (235,679)
Other expenses (2,965,017) (2,911,503)
Research and development (225,955) (2,219,743)
Fair value adjustment of non-listed investments 7 (3,180,000) -
Impairment expense on investment in associate 5 (3,249,808) -
Impairment of loan to Joint Ventures 6 (2,329,458) (1,629,660)
Loss on disposal of subsidiary - (212,473)
Write-off of abandoned patents (493,899) -
Share of loss in associates 5 (269,439) (555,868)
Share of loss in Joint Ventures 6 (3,843,874) (865,687)
Loss before income tax (21,324,064) (13,697,052)
Income tax benefit 316,579 782,903
Loss for the period from continuing operations (21,007,485) (12,914,149)
Other comprehensive income - -
Total comprehensive loss for the period (21,007,485) (12,914,149)
Loss per share
From continuing operations:
Basic (cents per share) 10 (3.73) (2.34)
Diluted (cents per share) 10 (3.73) (2.34)
The condensed consolidated statement of profit and loss and other
comprehensive income should be read in conjunction with the accompanying
notes.
Condensed consolidated statement of financial position
as at 31 December 2023
Note 31 Dec 2023 30 June 2023
$ $
Current assets
Cash and cash equivalents 19,361,121 24,438,695
Trade and other receivables 2,403,462 2,031,604
Other financial assets 7 467,939 763,650
Total current assets 22,232,522 27,233,949
Non-current assets
Property, plant and equipment 821,321 877,269
Exploration and evaluation expenditure 4 49,917,797 47,364,711
Intangible assets 217,687 945,994
Investment in joint ventures 6 4,399,570 5,449,045
Investment in associates 5 6,158,686 9,677,933
Other financial assets 7 2,178,971 5,298,971
Right of use assets 13 756,280 895,690
Total non-current assets 64,450,312 70,509,613
Total assets 86,682,834 97,743,562
Current liabilities
Trade and other payables 726,782 2,190,866
Provisions 950,161 1,021,613
Lease liability 13 304,817 285,625
Total current liabilities 1,981,760 3,498,104
Non-current liabilities
Provisions 51,508 72,685
Lease liability 13 505,836 652,049
Total non-current liabilities 557,344 724,734
Total liabilities 2,539,104 4,222,838
Net assets 84,143,730 93,520,724
Equity
Issued capital 8 158,705,764 146,234,171
Reserves 9 1,939,449 10,835,122
Accumulated losses (76,501,483) (63,548,569)
Total equity 84,143,730 93,520,724
This condensed consolidated statement of financial position should be read in
conjunction with the accompanying notes.
Condensed consolidated statement of changes in equity
for the half-year ended 31 December 2023
Issued Investment revaluation Other Share Accumulated Total
Capital reserve equity based losses $
$ $ reserve payments $
$ reserve
$
Balance as at 01/07/22 145,564,286 1,019,637 300,349 8,455,957 (28,744,200) 126,596,029
Loss for the period - - - - (12,914,149) (12,914,149)
Total comprehensive income for the period - - - - (12,914,149) (12,914,149)
Recognition of share-based payments - - - 935,908 - 935,908
Recognition of issue of shares under the employee rights plan 688,259 - - (688,259) - -
Share issue costs, net of tax (18,374) - - - - (18,374)
Balance at 31/12/22 146,234,171 1,019,637 300,349 8,703,606 (41,658,349) 114,599,414
Balance as at 01/07/23 146,234,171 1,019,637 300,349 9,515,136 (63,548,569) 93,520,724
Loss for the period - - - - (21,007,485) (21,007,485)
Total comprehensive income for the period - - - - (21,007,485) (21,007,485)
Issue of share capital 12,131,024 - - - - 12,131,024
Recognition of share-based payments - - - 436,377 - 436,377
Recognition of issue of shares under the employee rights plan 1,277,479 - - (1,277,479) - -
Share issue costs (936,910) - - - - (936,910)
Historic reserve clearing (note 9) - (1,019,637) (300,349) (6,734,585) 8,054,571 -
Balance at 31/12/23 158,705,764 - - 1,939,449 (76,501,483) 84,143,730
This condensed consolidated statement of changes in equity should be read in
conjunction with the accompanying notes.
Condensed consolidated statement of cash flows
for the half-year ended 31 December 2023
31 Dec 2023 31 Dec 2022
$ $
Cash flows from operating activities
Research and development refund 591,752 -
Payments to suppliers and employees (8,900,298) (11,978,189)
Net cash used in operating activities (8,308,546) (11,978,189)
Cash flows from investing activities
Payments for exploration and evaluation (2,854,258) (2,824,055)
Payments for intangible assets (26,598) (114,779)
Payment for property, plant & equipment (35,097) (192,622)
Payments for equity investments (60,000) (200,000)
Proceeds from equity investments 134,060 128,672
Interest received 296,408 339,446
Capital contributions to joint ventures (3,929,900) (1,457,960)
Loan to joint venture (1,143,957) (1,178,605)
Shares purchased in associate - (694,515)
Net cash used in investing activities (7,619,342) (6,194,418)
Cash flows from financing activities
Interest and other finance costs paid (34,397) (5,207)
Transaction costs related to issues of shares (936,910) (18,374)
Lease Payments (141,377) (187,050)
Capital Raising 12,131,024 -
Net cash received / (used) in financing activities 11,018,340 (210,631)
Net decrease in cash and cash equivalents (4,909,548) (18,383,238)
Cash and cash equivalents at the beginning of the period 24,438,695 60,158,159
Effects of exchange rate changes on the balance of cash held in foreign (168,026) 3,023
currencies
Cash and cash equivalents at the end of the period 19,361,121 41,777,944
This condensed consolidated statement of cash flows should be read in
conjunction with the accompanying notes.
Index to notes to the condensed consolidated financial statements
Note Contents
1 Significant
accounting policies
2 Segment
information
3 Dividends
4 Exploration and
evaluation expenditure
5 Investment in
associates
6 Investment in
joint venture
7 Other financial
assets
8 Share capital
9 Reserves
10 Loss per share
11 Commitments
12 Contingent
liabilities
13 Leases
14 Events subsequent to
balance date
Notes to the condensed consolidated financial statements
1. Significant accounting policies
Statement of compliance
The half-year financial report is a general purpose financial report prepared
in accordance with the Corporations Act 2001 and AASB 134 Interim Financial
Reporting. Compliance with AASB 134 ensures compliance with International
Financial Reporting Standard IAS 34 'Interim Financial Reporting'. The
half-year financial report does not include notes of the type normally
included in an annual financial report and shall be read in conjunction with
the most recent annual financial report.
Basis of preparation
The condensed consolidated financial statements have been prepared on the
basis of historical cost, except for the revaluation of certain non-current
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.
The accounting policies and methods of computation adopted in the preparation
of the half-year financial report are consistent with those adopted and
disclosed in the Company's 2023 annual financial report for the financial year
ended 30 June 2023. These accounting policies are consistent with Australian
Accounting Standards and with International Financial Reporting Standards.
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.
New accounting standards
The Group has adopted all of the new and revised Standards and Interpretations
issued by the Australian Accounting Standards Board that are relevant to their
operations and are effective for the current financial reporting period. These
standards did not have any significant impact on the Group's financial
statements.
Going Concern
The financial report has been prepared on the going concern basis, which
assumes continuity of normal business activities and the realisation of assets
and settlement of liabilities in the ordinary course of business.
The Group incurred losses from continuing operations of $21,007,485 (31 Dec
2022: $12,914,149) and experienced net cash outflows from operating and
investing activities of $15,927,888 (31 Dec 2022: $18,172,607) for the half
year ended 31 December 2023. As at 31 December 2023 the Group had cash and
cash equivalents of $19,361,122 (30 June 2022: $24,438,695).
In November and December 2023, the Group conducted a capital raise which
generated a total of $12.1m before costs.
The Group has prepared a cash flow forecast for the period ending 31 March
2025 which incorporates all non-discretionary expenditure to advance the
Group's projects. Other than the Group's continuing contributions to the
Primobius Joint Venture, the revised cash flow forecast does not assume that
development activities in relation to the Group's remaining projects commence
in the period ending 31 March 2025.
Accordingly, the directors believe that the going concern basis of preparation
is appropriate.
2. Segment information
Basis for segmentation:
AASB 8 Operating Segments requires the presentation of information based on
the components of the Group 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 Company operates under three reportable operating
segments comprised of the Company's lithium, titanium/vanadium and 'other'
segments. The lithium, titanium/vanadium and 'other' operating segments are
separately identified given they possess different competitive and operating
risks, and meet the quantitative criteria as set out in AASB 8. The 'other'
segments category is the aggregation of all remaining operating segments given
sufficient reportable operating segments have been identified.
2. Segment information (continued)
For the six months ended 31 December 2023
Reportable operating segments Lithium Titanium & Other Corporate Total
Vanadium
$ $ $ $ $
Other income - - - 301,970 301,970
Impairment of Joint Venture and associates - - (8,759,266) - (8,759,266)
Loss on disposal of subsidiary - - - - -
Share of Loss of JV and associates (2,111,867) (1,732,008) (269,439) - (4,113,314)
Depreciation - (96,147) - (148,664) (244,811)
Total expenses (408,470) (1,060,144) (162,324) (6,877,705) (8,508,643)
Profit/(loss) before tax (2,520,337) (2,888,299) (9,191,029) (6,724,399) (21,324,064)
Income tax benefit - - - 316,579 316,579
Consolidated loss after tax (2,520,337) (2,888,299) (9,191,029) (6,407,820) (21,007,485)
As at 31 December 2023
Reportable operating segments Lithium Titanium & Other Corporate Total
Vanadium
$ $ $ $ $
Increase/(decrease) in segment assets (1,497,541) 2,052,351 (6,934,960) (4,680,577) (11,060,727)
Total segment assets 4,502,949 50,849,274 8,356,670 22,973,941 86,682,834
Total assets 4,502,949 50,849,274 8,356,670 22,973,941 86,682,834
2. Segment information (continued)
For the six months ended 31 December 2022
Reportable operating segments Lithium Titanium & Other Corporate Total
Vanadium
$ $ $ $ $
Other income - - 84,297 491,101 575,398
Impairment of loan to Joint Venture (1,629,660) - - - (1,629,660)
Loss on disposal of subsidiary (212,473) - - - (212,473)
Share of Loss of JV and associates (865,687) - (555,868) - (1,421,555)
Depreciation - (48,214) - (193,348) (241,562)
Total expenses (12) (2,125,467) (1,357) (8,640,364) (10,767,200)
Profit/(loss) before tax (2,707,832) (2,173,681) (472,928) (8,342,611) (13,697,052)
Income tax benefit - - - 782,903 782,903
Consolidated loss after tax (2,707,832) (2,173,681) (472,928) (7,559,708) (12,914,149)
As at 30 June 2023
Reportable operating segments Lithium Titanium & Other Corporate Total
Vanadium
$ $ $ $ $
Increase/(decrease) in segment assets (309,905) 6,414,392 (6,544,926) (32,856,539) (33,296,978)
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
3. Dividends
No dividends were paid to the holders of fully paid ordinary shares during the
half-year period (31 December 2022: nil).
4. Exploration and evaluation expenditure
31 December 2023 30 June 2023
$ $
Opening carrying value 47,364,711 41,415,749
Additions 2,553,086 5,948,962
Closing carrying value 49,917,797 47,364,711
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.
5. Investment in associates
Name of operation Principal activity Interest
31 December 2023 30 June 2023
% %
Redivium Limited (formerly Hannans Ltd) ((i)) Lithium-ion battery recycling 26.04 26.09
The Consolidated Entity's interest in assets employed in the above associate
is detailed below.
(i) Redivium Limited
The associate is accounted for using the equity method in this condensed
consolidated financial report.
Summarised financial information for the associate:
31 December 2023 30 June 2023
$ $
Opening carrying value of investment in associate 9,677,933 13,668,977
Shares purchased - 694,515
Share of loss of associate recognised in profit or loss((i)(ii)) (269,439) (3,412,514)
Impairment expense ((iii)(iv)) (3,249,808) (1,273,045)
Closing carrying value of investment in associate 6,158,686 9,677,933
(i) The equity accounted share of the associate's loss
is credited against the carrying value of the investment in the associate.
(ii) Share of loss at 31 December 2022 was $555,868.
(iii) In the current financial year, the impairment
value of the investment in associate has been impaired down to its carrying
value on per share basis in December 2023 resulting in a $3,249,808 expense
(2022: nil).
(iv) The fair value of the Groups investment in Redivium
as at 31 December 2023 on a per share basis is $ 6,158,684 (30 June 2023:
$9,677,932).
Shares held in associate are set out in the table below.
31 December 2023 30 June
2023
No. No.
Shares held in Redivium Limited 879,812,014 879,812,014
6. Investment in joint venture
Name of operation Principal activity Interest
31 December 2023 30 June 2023
% %
Primobius GmbH ((i)) Lithium Battery Recycling 50 50
The above joint venture is accounted for using the equity method in this
condensed consolidated financial report.
(i) 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: 31 December 2023 30 June
$ 2023
$
Opening balance of investment in joint venture 4,699,280 5,458,508
Capital contributions 1,655,355 3,091,947
Share of loss of joint venture recognised in profit or loss (2,017,837) (3,851,175)
Carrying value of investment in the joint venture 4,336,798 4,699,280
Primobius GmbH Summary Balance Sheet 31 December 2023 30 June
$ 2023
$
Current assets((a)) 3,206,383 6,200,733
Non-current assets 7,492,453 8,667,753
Current liabilities (1,966,551) (5,307,806)
Non-current liabilities - -
Primobius GmbH Summary Profit and Loss 31 December 2023 31 December 2022
$ $
Revenue 10,046,725 207,848
Expenses((b)) (14,082,400) (2,083,846)
Loss from continuing operations (4,035,675) (1,875,998)
Share of loss of joint venture recognised in profit or loss (2,017,837) (937,999)
((a)) The current asset balance is inclusive of cash and cash equivalents of
$3,090,381 (30 June 2023: 5,566,896)
((b)) The expenses balance is inclusive of depreciation of $1,265,322 (31
December 2022: 758,033)
6. Investment in joint venture (continued)
Name of operation Principal activity Interest
31 December 2023 30 June 2023
% %
Reed Advanced Materials Pty Ltd((ii)) Evaluation of lithium hydroxide process 70 70
The above joint venture is accounted for using the equity method in this
consolidated financial report.
(ii) Reed Advanced Materials Pty Ltd
On 6 October 2015 Neometals and PMI 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 PMI.
Summarised financial information for the joint venture: 31 December 2023 30 June
$ 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 1,143,957 2,366,703
Impairment of loan to joint venture (1,143,957) (2,716,703)
Closing loan to joint venture - -
Share of loss of joint venture not recognised in profit or loss (1,449,855) (1,532,266)
Reed Advanced Materials Pty Ltd Summary Balance Sheet 31 December 2023 30 June
$ 2023
$
Current assets 1,723,503 1,332,031
Non-current assets 558,647 678,909
Current liabilities (625,085) (46,052)
Non-current liabilities (7,696,794) (6,062,571)
Reed Advanced Materials Pty Ltd Summary Profit and Loss 31 December 2023 31 December 2022
$ $
Revenue - -
Expenses (1,942,046) (1,816,747)
Loss from continuing operations (1,942,046) (1,816,747)
Share of loss of joint venture recognised in profit or loss (1,359,432) (1,271,723)
6. Investment in joint venture (continued)
Name of operation Principal activity Interest
31 December 2023 30 June 2023
% %
Recycling Industries Scandinavia AB((iii)) Vanadium recovery 72.5 72.5
The Consolidated Entity's interest in assets employed in the above joint
ventures 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. Despite holding 72.5%, joint control continued
to exist and accordingly the investment in RISAB was accounted for using the
equity method prescribed under AASB 128. An additional equity contribution was
made in June 2023 for $1,090,590 and Critical Metals Ltd contributed their pro
rata share which saw Neometals' interest in RISAB remaining unchanged. At 31
December 2023, the balance of the investment was impaired to nil due to
RISAB's net liability position.
Summarised financial information for the joint venture: 31 December 2023 30 June
$ 2023
$
Opening balance of investment in joint venture 642,964 -
Capital contributions 2,274,545 4,090,590
Share of loss of joint venture recognised in profit or loss (1,732,008) (3,447,626)
Impairment of investment (1,185,501)
Carrying value of investment in the joint venture - 642,964
Recycling Industries Scandinavia AB Summary Balance Sheet 31 December 2023 30 June
$ 2023
$
Current assets 1,408,166 2,200,633
Non-current assets - 3,216,090
Current liabilities (2,105,932) (2,023,294)
Non-current liabilities (643,669) (4,375,058)
Recycling Industries Scandinavia AB Summary Profit and Loss 31 December 2023 31 December 2022
$ $
Revenue - -
Expenses (2,309,344) -
Loss from continuing operations (2,309,344) -
Share of loss of joint venture recognised in profit or loss (1,732,008) -
6. Investment in joint venture (continued)
Name of operation Principal activity Interest
31 December 2023 30 June 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
ventures is detailed below.
(iv) ACN 630 589 507 Pty Ltd
On 8 December 2022, Neometals issued 50% equity interest in battery recycling
IP holding company, ACN 630 589 507 Pty Ltd ("ACN 630"), to SMS group GmbH on
an unconditional basis. As a result of this, ACN 630 left the Neometals
consolidated group, which resulted in a $212,473 loss on disposal of
subsidiary.
Summarised financial information for the joint venture: 31 December 2023 30 June
$ 2023
$
Opening balance of investment in joint venture 106,801 -
Capital contributions 50,000 106,801
Share of (profit)/loss of joint venture recognised in profit or loss (94,029) -
Carrying value of investment in the joint venture 62,772 106,801
ACN 630 589 507 Pty Ltd Summary Balance Sheet 31 December 2023 30 June
$ 2023
$
Current assets 51,136 119,077
Non-current assets 240,783 275,722
Current liabilities - (10,000)
Non-current liabilities (263,598) (213,598)
ACN 630 589 507 Pty Ltd Summary Profit and Loss 31 December 2023 31 December 2022
$ $
Revenue - -
Expenses (188,058) -
Loss from continuing operations (188,058) -
Share of loss of joint venture recognised in profit or loss (94,029) -
7. Other financial assets
31 December 2023 30 June 2023
$ $
Current
Financial assets measured at FVTPL((i)) 467,939 763,650
Total Current 467,939 763,650
Non-current
Financial assets measured at FVTPL((ii)) 1,309,896 4,429,896
Convertible note((iii)) 669,075 669,075
Rental bond term deposit 200,000 200,000
Total non-current 2,178,971 5,298,971
Total 2,646,910 6,062,621
(i) 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) The Group has invested in a portfolio of
non-listed shares which are not actively traded. Within this balance,
Neometals has an equity interest in Critical Metals Limited. As (unadjusted)
quoted prices in active markets are unavailable, consideration is given to
precedent transactions involving the sale of the company's shares, as a basis
to assess the value of the equity investment. During the period, Neometals
reviewed the carrying value of the investment in Critical Metals Ltd. The
assessment resulted in a fair value adjustment of $3,180,000 bringing the
carrying value down to nil as at 31 December 2023. Neometals will continue to
monitor the company's progress and assess whether impairment reversals may
occur in future reporting periods.
(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.
8. Share capital
During the half-year reporting period, Neometals Ltd issued the following
share capital:
6 months to 31 December 2023:
During the 6 months to 31 December 2023 the Company issued 6,060,793 ordinary
shares to eligible employees, consultants and Non-executive Directors
following the vesting and exercise of performance rights pursuant to the
Neometals Ltd performance rights plan (2022: 4,364,781).
During the 6 months to 31 December 2023 the Company issued 63,888,347 shares
via a capital raise (2022: nil)
8. Share capital (continued)
31 December 2023 30 June 2023
$ $
622,690,316 fully paid ordinary shares (30 June 2023: 552,741,176) 158,705,764 146,234,171
31 December 30 June
2023 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
Capital raising 63,888,347 12,131,024 - -
Other share based payments 6,060,793 1,277,479 4,364,780 688,259
Share issue costs - (936,910) - (18,374)
Balance at the end of the financial year 622,690,316 158,705,764 552,741,176 146,234,171
Fully paid ordinary shares carry one vote per share and carry the right to
dividends.
Share options
During the 6 months to 31 December 2023 no share options over the Company's
ordinary shares were issued during the reporting period (2022: Nil).
Performance rights
During the 6 months to 31 December 2023 the Company issued 4,375,765
performance rights to Neometals employees, consultants and Non-executive
Directors (2022: 1,705,325) for nil cash consideration. These performance
rights may result in the issue of a total of 4,375,765 shares if the
applicable vesting and performance criteria are satisfied over the vesting
period.
During the 6 months to 31 December 2023 754,650 performance rights were
cancelled relating to Neometals employees (2022: nil). 1,186,779 performance
rights lapsed relating to Neometals employees (2022: 956,432).
Performance rights were priced using a Monte Carlo pricing model. Where
relevant, the expected life used in the model has been adjusted based on
management's best estimate for the effects of non-transferability, exercise
restrictions (including the probability of meeting market conditions attached
to the performance rights), and behavioural considerations. The following
assumptions were used for the valuation of performance rights issued:
Valuation date 11 September 2023
Vesting date 30 June 2026 and/or 31 December 2026
Share price $0.445
Expected volatility 71%
Expected life 2.81 - 3.31 years
Risk-free rate 3.84%
Expected dividend yields 0.00%
9. Reserves
31 December 30 June
2023 2023
$ $
Share based payments reserve:
Balance at the beginning of the financial year 9,515,136 8,455,957
Increase/ (Decrease) in share based payments 436,377 1,747,438
Amounts transferred to share capital on exercise (1,277,479) (688,259)
Historical reserve clearing((i)) (6,734,586) -
Balance at the end of the financial year 1,939,449 9,515,136
Other 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 1,939,449 10,835,122
i) At 31 December 2023, 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 31 December 2023,
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 31 December 2023, these historical
amounts were cleared from the reserve to accumulated losses.
10. Loss per share
31 December 31 December
2023 2022
Cents per share Cents per share
Basic loss per share:
Continuing operations (3.73) (2.34)
Diluted loss per share:
Continuing operations (3.73) (2.34)
Basic and diluted loss per share
The profit / (loss) and weighted average number of ordinary shares used in the
calculation of basic and diluted loss per share are as follows:
Loss ((a)) 31 December 31 December
2023 2022
$ $
Continuing operations (21,007,485) (12,914,149)
No. No.
Weighted average number of ordinary shares for the purpose of basic loss per 563,833,235 551,945,976
share
Weighted average number of ordinary shares for the purpose of diluted loss per 563,833,235 551,945,976
share
(a) Profit / (loss) used in the calculation of loss per share reconciles
to profit / (loss) for the period.
11. Commitments
(a) Exploration and evaluation and associate commitments
Tenement commitments for the group total $719,141 as at 31 December 2023
(2022: $679,985).
12. Contingent liabilities
The Group has no contingent liabilities at 31 December 2023.
13. 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 entered into on 1 July 2019 for a 48 month period expiring on 30 June
2023, this has been renewed until 30 June 2026. The lease of a photocopier is
for a period of 12 months expiring in June 2023, this was renewed for 48
months to 30 June 2027. 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.
31 December 2023
Right-of-use assets Buildings Equipment Total
$ $ $
Cost 911,846 14,359 926,205
Accumulated Depreciation (168,130) (1,795) (169,925)
Carrying Amount 743,716 12,564 756,280
Lease liability Buildings Equipment Total
$ $ $
Current 301,507 3,310 304,817
Non-current 496,348 9,488 505,836
Total 797,855 12,798 810,653
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
Lease liability Buildings Equipment Total
$ $ $
Current 285,625 - 285,625
Non-current 652,049 - 652,049
Total 937,674 - 937,674
13. Leases (continued)
31 December 2023 31 December 2022
$ $
Amounts recognised in profit and loss
Depreciation expense on right-of-use asset 153,769 153,016
Interest expense on lease liabilities 34,397 10,796
188,166 163,812
14. Events subsequent to balance date
On 10 January 2024, Neometals announced that Primobius had received a purchase
order from Mercedes-Benz for the hydrometallurgical hub plant to complete its
lithium-ion battery recycling facility.
Subsequent to reporting date, the Company has commenced workstreams to
rationalise expenditure on upstream mineral portfolio, which may lead to the
divestment of certain non-core assets.
No other matters have arisen since 31 December 2023 that would be likely to
materially affect the operations of the Group, or its state of affairs which
have not otherwise been disclosed in this financial report.
(#_ftnref1)
(#_ftnref2)
3 (for full details refer to Neometals ASX announcement headlined "Vanadium
Recovery Project Delivers Strong Feasibility Results" released on 8(th) March
2023).
4 (for full details refer to ASX announcement headlined "Barrambie Project -
Mineral Resource Update
(https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2995-01971759-6A879871?access_token=83ff96335c2d45a094df02a206a39ff4)
" released on 17 April 2018 and Table 1 (Appendix 1)
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