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
|
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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].
·
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 CO2
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 13th 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 ("LiSO4") 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 30th 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] 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 CO2 into a potentially saleable
carbonate by-product which sequesters CO2 (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 ("V2O5") 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
footprint4.
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% TiO2 and 0.44%
V2O5), containing the world's second
highest-grade hard rock titanium Mineral Resource (53.6Mt at 21.17%
TiO2 and 0.63% V2O5) and
high-grade vanadium resource (64.9Mt at 0.82%
V2O5 and 16.9% TiO2) subsets
(referred to as
the Eastern and Central Bands respectively) based on the latest
Neometals 2018 Mineral Resource Estimate[4].
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.
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
Capital
$
|
Investment revaluation
reserve
$
|
Other
equity
reserve
$
|
Share
based
payments
reserve
$
|
Accumulated
losses
$
|
Total
$
|
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 currencies
|
|
(168,026)
|
3,023
|
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
&
Vanadium
$
|
Other
$
|
Corporate
$
|
Total
$
|
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
&
Vanadium
$
|
Other
$
|
Corporate
$
|
Total
$
|
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
&
Vanadium
$
|
Other
$
|
Corporate
$
|
Total
$
|
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
&
Vanadium
$
|
Other
$
|
Corporate
$
|
Total
$
|
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
2023
|
30 June
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
2023
|
30 June
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
2023
Cents
per share
|
31
December
2022
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
2023
$
|
31
December
2022
$
|
Continuing operations
|
(21,007,485)
|
(12,914,149)
|
|
No.
|
No.
|
Weighted average number of
ordinary shares for the purpose of basic loss per share
|
563,833,235
|
551,945,976
|
Weighted average number of
ordinary shares for the purpose of diluted loss per
share
|
563,833,235
|
551,945,976
|
(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.