Australian Vanadium Limited
ACN 116 221 740
Australian Vanadium Limited
Level 1, 85 Havelock Street
West Perth WA 6005
Telephone: +61 8 9321 5594
www.australianvanadium.com.au
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Annual Report
2022
TABLE OF CONTENTS
Corporate Directory
Letter from the Chairman
Directors’ Report
Consolidated Statement of Profit or Loss and Other Comprehensive Income
Consolidated Statement of Financial Position
Consolidated Statement of Changes in Equity
Consolidated Statement of Cash Flows
Notes to the Consolidated Financial Statements
Directors’ Declaration
Auditors’ Independence Declaration
Independent Auditors’ Report
Annual Mineral Resource Statement
ASX Additional Information
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CORPORATE DIRECTORY
Directors
Cliff Lawrenson – (Non-Executive Chairman)
Vincent Algar (Managing Director)
Leslie Ingraham (Executive Director)
Daniel Harris (Non-Executive Director)
Company Secretary
Neville Bassett
Registered Office
Level 1, 85 Havelock Street
West Perth WA 6005
Telephone: +61 8 9321 5594
Facsimile: +61 8 6268 2699
Share Registry
Automic Pty Ltd
Level 5
191 St Georges Terrace
Perth WA 6000
Telephone (Australia): 1300 288 664
Auditors
Armada Audit & Assurance Pty Ltd
18 Sangiorgio Court
Osborne Park WA 6017
ASX Code
Ordinary shares – AVL
Listed options – AVLOA
2022 Annual Report | 2
CHAIRMAN’S LETTER
Dear Shareholders,
On behalf of your Board of Directors, I have pleasure in presenting the 2022 Annual Report of Australian
Vanadium Limited (“AVL” or the “Company”) for the financial year ending 30 June 2022.
The 2022 financial year has been a breakthrough year for AVL as the Company completed its Bankable
Feasibility Study and secured a highly competitive Modern Manufacturing Initiative Collaboration stream
federal government grant of $49 million, creating a substantial foundation for the Company to become the
world’s next primary vanadium producer.
The year encompassed the full impact of the global pandemic, with continued exposure to complex and volatile
capital markets. Despite these difficult conditions, the AVL team delivered technically outstanding work in
support of the Australian Vanadium Project. This work has been recognised by shareholders, new investors
and the established broker community, which led to our share price and market capitalisation achieving new
highs during the year. We took the opportunity to raise $20 million in new capital in May 2022 and, while the
subsequent Share Purchase Plan largely missed the equity window, we learned a great deal about funding in
what we expect to be continued complex capital and debt markets.
From a macro perspective, the growing investor interest in vanadium as a critical metal and the demand for
vanadium in the flow battery market contributed to the support AVL is receiving in both technical and capital
markets. This increasingly positive sentiment supported the capital raise which has placed the Company in a
strong financial position for the Project’s next stages.
AVL’s greatest strength is the quality and commitment of its people and its collaboration partners. This is
evidenced in ongoing and new support from the Australian Government for the Company’s downstream
processing plans through the Manufacturing Translation Stream - Resources Technology and Critical Minerals
Processing Priority, as well as the Modern Manufacturing Initiative Collaboration stream grants, both
administered by the Department of Industry, Science, Energy and Resources. AVL looks forward to being the
first company in Australia to successfully and sustainably build and operate a vanadium mine, processing plant,
battery electrolyte plant and be involved in vanadium based battery applications. These activities confirm AVL’s
commitment to the entire vanadium value chain. Ongoing thoughtful development and collaboration with like-
minded ESG-centric participants will bring meaningful economic benefit and certainty of supply to our country,
while enabling the creation of more jobs and a valuable domestic skill set.
The Company’s subsidiary, VSUN Energy, continued to make progress during the year in the renewable
energy market. The shift towards a greater understanding of the need for long duration energy batteries, such
as can be ideally provided by the deployment of vanadium redox flow batteries, accelerated during the year
as more and more organisations and countries committed to net zero carbon emission goals for 2030 and
2050. It is most important, at this time, that proper consideration and priority be given to electricity storage to
ensure that renewable electricity generation is optimised.
Vanadium’s critical role in both the steel and battery markets has a positive impact on global carbon emission
reduction. AVL is accelerating its ESG policies and goals, aligning itself with international standards and
refining internal and external policies and frameworks within which the Company will operate.
As AVL progresses on its journey to vanadium production, I would like to thank shareholders for their continued
support throughout the year, welcome new investors and extend my sincere thanks to the Board, management
and staff for their ongoing commitment to the Company.
Yours sincerely,
Cliff Lawrenson
Non-Executive Chairman
2022 Annual Report | 3
DIRECTORS’ REPORT
CORPORATE HIGHLIGHTS
The Australian Vanadium Project
Bankable Feasibility Study (BFS) released confirming AVL’s Australian Vanadium Project as a
potential globally significant primary vanadium producer (development of the asset is subject to
raising finance)
Total vanadium Mineral Resource updated to 239 million tonnes (Mt) at 0.73% V2O5 (vanadium
pentoxide)
Updated Ore Reserve of 30.9Mt at 1.09% V2O5 comprised of a Proved Reserve of 10.5Mt at 1.11%
V2O5 and a Probable Reserve of 20.4Mt at 1.07% V2O5
Combined Measured and Indicated high-grade vanadium resource increased to 38.8Mt at 1.11%
V2O5
o 11.3Mt at 1.14% V2O5 Measured Resources
o 27.5Mt at 1.10% V2O5 Indicated Resources
Strong financial metrics:
o Project pre-tax NPV7.5 of A$833M
o Equity Project IRR 20.6%
o Project payback of 7.3 years after first production
o Project annual EBITDA average for 25 years of A$175M
o Total Project EBITDA of $4.4B
$49M Australian Government grant awarded towards Project funding under the Modern
Manufacturing Initiative Collaboration stream
Three Letters of Intent for iron titanium coproduct offtake sales signed with significant Chinese steel
producers, one converting to a non-binding Term Sheet post year-end
Joint Co-operation Agreement signed with Geraldton Port for the future use of facilities and services
Globally significant combined roast/leach overall vanadium extraction of 92% confirmed
Test data identified potential for increased vanadium resources and higher FeTi coproduct grades in
southern blocks, with drilling currently underway
Processing plant water drilling and site rezoning applications completed
Electrolyte Plant
Awarded $3.69M grant from the Australian Government as part of the Manufacturing Translation
Stream – Resources Technology and Critical Minerals Process Priority grant opportunity in a
competitive process for downstream vanadium processing, including:
o High-purity vanadium pentoxide processing circuit
o Building and operating a commercial vanadium electrolyte plant in WA
o Manufacture of residential and stand-alone power systems in WA
Memorandum of Understanding for offtake of V2O5 and vanadium electrolyte sales signed with
Spanish vanadium redox flow battery (VRFB) manufacturer
Licence signed with U.S. Vanadium LLC for high purity vanadium oxide supply and vanadium
electrolyte manufacturing technology
Primero appointed to undertake Early Contractor Involvement for the building of AVL’s vanadium
electrolyte manufacturing plant
2022 Annual Report | 4
DIRECTORS’ REPORT (CONTINUED)
VSUN Energy
Water Corporation VRFB trial for water purification and pumping applications commenced in 2022 and
is continuing
Manufacture of VRFB-based standalone power system (SPS) for the IGO Limited Nova Nickel
Operation completed and currently under testing at a facility in Perth prior to being installed on site
Electric vehicle charging test and demonstration successfully conducted using VRFB with Tesla and
Mini EVs
Memorandum of Understanding signed with North Harbour Clean Energy (NHCE) to help facilitate the
development of VRFBs into existing and future NHCE projects
Three 5kW/30kWh VRFBs manufactured by AVL’s Singaporean partner V-Flow Tech arrived in Perth,
which when installed will provide further valuable local operating examples of the Australian-invented
storage technology
Coates
Nickel, chrome, copper and PGE soil anomalies confirmed prospectivity
Significant airborne electromagnetic conductor identified and airborne electromagnetic surveys
completed at Coates in preparation for drilling using pre-approved EIS (WA Government Exploration
Incentive Scheme) funding
Three significant new conductors identified, including 1,900m long coherent bedrock anomaly
corresponding with topographic low and magnetic high zones, factors considered highly conducive to
further searches for Ni-PGE mineralisation based on regional activity
Drilling as part of EIS and CSIRO Research project commenced
Option agreement signed with Mining Green Metals (MGM) for MGM to acquire a 100% interest in the
Coates Project
Corporate
Structured finance specialist HCF International appointed, in partnership with Grant Thornton
Australia, to secure funding to support the development of the Project
$8.7M (before costs) raised via a Placement to institutional and sophisticated investors
$20.57M (before costs) raised via a Placement and Share Purchase Plan
Cash at bank at 30 June 2022 of $26.4M
Successful completion of ESG gap analysis by global consultancy Advisian, demonstrating that AVL is
performing well relative to its stage of development
The annual financial statements for the Group have been prepared based on assumptions and conditions
prevalent at 30 June 2022.
2022 Annual Report | 5
DIRECTORS’ REPORT (CONTINUED)
REVIEW OF OPERATIONS
During the year, the Company made substantial progress in its objective to develop the Australian Vanadium
Project (the Project) in Western Australia.
The Australian Vanadium Project
The Australian Vanadium Project is located approximately 40km south of Meekatharra within the northern
Murchison region of Western Australia. Access from Perth is via the Great Northern Highway and the
Meekatharra-Sandstone Road (refer Figure 1).
The Project is based on a proposed open cut mine of the Vanadium Titanium Magnetite (VTM) Orebody and
a crushing, milling and beneficiation plant (CMB) and a vanadium processing plant. Concentrate produced at
the CMB will be transported to a vanadium processing plant located near Geraldton for final conversion to high
quality vanadium pentoxide (V2O5) for sale or further conversion and use in steel and energy storage, catalyst,
chemical and defence applications. The coastal processing plant location is a key strategic differentiator to all
current global primary vanadium producers, utilising the unique gas, road and port infrastructure of the world
class mining region of mid-western Western Australia.
Figure 1: Location of The Australian Vanadium Project
2022 Annual Report | 6
DIRECTORS’ REPORT (CONTINUED)
Bankable Feasibility Study (BFS)
During the year, the Company released a Bankable Feasibility Study (BFS) which confirmed the Project as a
potential globally significant primary vanadium producer targeting critical mineral, steel and energy storage
markets. Development of the Project is subject to raising finance.
Highlights from the BFS for the Project include:
Technical studies completed, including three years of extensive piloting testwork, supporting robust
processing flowsheets, de-risking the Project towards funding and delivery.
Pre-tax NPV7.5 of A$833M and equity IRR 20.6% based on US$10.50/lb V2O5 price, A$604M upfront
pre-production capital excluding contingency.
Updated Ore Reserve of 30.9Mt at 1.09% V2O5 comprised of a Proved Reserve of 10.5Mt at 1.11%
V2O5 (vanadium pentoxide) and a Probable Reserve of 20.4Mt at 1.07% V2O5
1.
Anticipated initial mine life of 25 years, supporting a long-life, consistent ore feed operation on AVL’s
granted mining lease.
Strategic separation of processing plant from minesite and concentrator allows access to competitive
natural gas near Geraldton, local workforce and Iron Titanium (FeTi) coproduct sales opportunities
through the Port of Geraldton.
Average annual vanadium production of 24.7 Mlbs V2O5 (11,200t) as a 99.5% V2O5 high purity flake
and 900,000 dry tonnes per annum of FeTi coproduct.
Forecast vanadium recovery to concentrate of 74.2% life of mine, supported by pilot testing and
comparable to current international primary vanadium operations.
Innovative process flowsheet recovers 90% of vanadium in concentrate, utilising tried-and-tested grate
kiln technology, with valuable reductions in gas consumption and CO2 emissions.
Approvals well advanced and Environmental, Social and Governance (ESG) standards and action
plans in place.
Global critical mineral vanadium market seeing strong growth in demand and pricing (currently over
US$12/lb V2O5) with the battery sector showing accelerated uptake in vanadium redox flow batteries.
Financial outcomes from the study are robust and provide a strong commercial case for Project development2.
Wood Australia Pty Ltd (Wood), a leading engineering firm with valuable expertise in vanadium and similar
mineral processing, has undertaken the engineering and design, providing an overall accuracy for the capital
and operating cost estimates of ±15%.
The level of study provides a basis for engagement with financing institutions including the Northern Australia
Infrastructure Facility (NAIF), Export Finance Australia and many of the international resource banks. The key
financial outcomes are:
Project pre-tax NPV7.5 of A$833M.
Equity Project IRR 20.6%.
Project payback of 7.3 years after first production.
Project annual EBITDA average for 25 years of A$175M.
Total Project EBITDA of $4.4B.
Upside case offers pre-tax NPV7.5 of $1,287M assuming US$12/lb V2O5 price. This increases to
$1,450M with additional improvements in operating expense of 10%.
C1 operating cost of US$4.43/lb V2O5 competitive with world primary vanadium producers, includes
FeTi coproduct credit.
Pre-production plant and associated infrastructure capital cost of US$435M (A$604M), excluding any
grant payments and before contingency.
1 Rounding is applied
2 Assumptions 0.72 USD/1 AUD; US$10.50/lb long term average V2O5 price; cost estimation at ±15% level of accuracy; All $ figures are
A$ unless stated otherwise
2022 Annual Report | 7
DIRECTORS’ REPORT (CONTINUED)
Figure 2 below summarises the key metrics of the Australian Vanadium Project.
Figure 2: Key metrics of the Project
For full details of the BFS, please see ASX announcement dated 6 April 2022 ‘Bankable Feasibility Study for
the Australian Vanadium Project’.
Figure 3 Top: CMB layout, Bottom: Processing Plant layout
2022 Annual Report | 8
DIRECTORS’ REPORT (CONTINUED)
$49M Grant Awarded to AVL by Australian Government
In March 2022 AVL was awarded a $49M grant under the Australian Government’s Modern Manufacturing
Initiative Collaboration stream to support the development of the Project. The grant will have the effect of
reducing the equity component required and providing comfort to both debt and equity investors.
The Project, supported by the grant, enables new critical mineral production through the establishment of an
integrated onshore Australian vanadium supply chain for steel and battery markets. Collaboration with ATCO
Australia for green hydrogen and Bryah Resources Limited (ASX: BYH) for recovery of nickel, copper and
cobalt from the tails stream was a key component of the application.
Working with ATCO to incorporate green hydrogen into the Project will fuel the processing of vanadium to a
>99.9% pure V2O5 product, suitable for the critical mineral and battery markets. The V2O5 will subsequently be
processed into vanadium electrolyte to fill vanadium redox flow batteries (VRFBs) at the AVL vanadium
electrolyte manufacturing plant, which is currently being built in Kwinana, Western Australia. The plant is partly
funded through the Australian Government’s Resources Technology and Critical Minerals Processing National
Manufacturing Priority road map.
Through AVL’s 100% owned battery subsidiary VSUN Energy, VRFBs will be installed in industries from
agriculture and mining, through to residential energy storage and charging infrastructure for electric vehicles.
Working with Bryah Resources, AVL intends to explore the opportunity to process an economic critical battery
mineral resource from what was previously a waste stream at the Project. A tailings stream from AVL’s CMB
circuit contains sulphides and the base metals cobalt, nickel, copper and gold. This collaboration will provide
further downstream critical and battery mineral processing capabilities.
AVL’s business to research collaborations as part of the grant include Curtin University, Queensland University
of Technology and Australian Nuclear Science and Technology (ANSTO), enabling AVL to further improve the
manufacturing process for high purity vanadium and vanadium electrolytes. AVL is an associate participant in
the Future Battery Industries Cooperative Research Centre (FBICRC) and is contributing to its activities,
specifically the Development of Electrolytes Project which is being led by Professor Aleks Nikoloski at Murdoch
University.
Mineral Resource update
In November 2021 AVL announced an update to the Mineral Resource at the Project which was subsequently
used in the BFS.
The Company updated the Measured, Indicated and Inferred Mineral Resource contained within a massive
magnetite high-grade (HG) horizon and overlying lower grade (LG) disseminated magnetite horizons for a total
of 239 million tonnes (Mt) at 0.73% V2O5. This updated figure included an 8.6% increase in the HG massive
magnetite portion of the Mineral Resource from that previously reported in March 20203. The Project economics
are driven by the extraction and processing of the HG resources.
The revised Mineral Resource includes a geologically distinct, massive vanadium-bearing magnetite HG zone
which remains the focus of economic studies. The Measured, Indicated and Inferred Mineral Resource
estimate for this massive magnetite HG portion is 95.6Mt at 1.07% V2O5, which includes:
Measured:
Indicated:
Inferred:
11.3Mt at 1.14% V2O5;
27.5Mt at 1.10% V2O5; and
56.8Mt at 1.04% V2O5.
The below table shows the Global Mineral Resource reported as in-situ vanadium pentoxide by geological
domain (HG, combined LG and combined Transported) for all fault blocks at the Project.
3 See ASX announcement dated 5 March 2020, ‘Total Vanadium Resource Rises to 208 Million Tonnes’
2022 Annual Report | 9
DIRECTORS’ REPORT (CONTINUED)
Table 1: Mineral Resource estimate by Zone
Overall, the total Mineral Resource increased by 30.8Mt (14.8%), as a result of additional studies and increased
understanding of the density of rocks within the deposit. The deposit remains open at depth and if required in
the future, there is potential to convert further Inferred Resources located along the Company’s 11.5km of
strike length to the Measured and Indicated categories.
AVL is continuously seeking to improve its understanding of the Mineral Resource as it moves the Project
towards production. Vanadium Titanium Magnetite deposits display a clear correlation between iron content
and density. New information that was captured and analysed by AVL was used to upgrade and increase the
vanadium resources at the Project. Density measurement and analysis is a critical and key component of
mineral resource estimation and is used to de-risk mining and processing. As such, further understanding of
density, geological and metallurgical parameters will be gained as the Project develops.
Southern Blocks
Beneficiation testwork from the southern resource blocks indicated higher vanadium and iron concentrate
grades. The iron grades in fresh magnetic concentrate are up to 61.0% Fe, demonstrating potential to improve
the value of AVL’s FeTi coproduct after vanadium extraction is completed.
The work that the AVL team has undertaken across the Project has provided the Company with a unique
understanding of the mining recoveries that can be achieved. Grades of up to 1.51% V2O5 in concentrate
confirm near surface opportunities for higher vanadium concentrate grades and recoveries.
New detailed ground geophysics in southern Block 90 confirmed 1.5km extension of vanadium magnetite trend,
with limited previous drilling.
2022 Annual Report | 10
DIRECTORS’ REPORT (CONTINUED)
High purity V2O5 averaging 99.5% produced as an end-product
AVL produced high-purity 99.5% V2O5 marketing
samples during the final stage of metallurgical
testing for the BFS. The feed materials for this
sequence of pilot programs comprised two
composites of drill core, designed to be indicative
of the average first five years of production and
life of mine production. A sample of V2O5,
alongside AVL’s pelletised vanadium concentrate
and a sample of ore is shown in Figure 4.
Figure 4: Sample of V2O5 precipitate generated
from pilot program alongside roasted pellets and
a vanadium ore sample.
Vanadium leach extraction
Overall combined roast and leach vanadium extraction including first and second leach stages was validated
at 92%, a key differentiator for AVL’s pellet roast and leach processing circuit.
The water-leach and wash processes impressively removed 99% of soluble vanadium from the FeTi coproduct,
enhancing its value for direct use in steelmaking.
AVL’s unique mechanical water leach circuit has been shown to be a viable, cost-effective design, maximising
onshore Australian extraction of high value critical mineral vanadium products.
The work was conducted at ALS Metallurgy Pty Ltd (ALS) testing facilities in Perth – a research partner in
AVL’s Australian Government’s Cooperative Research Centre Projects scheme entitled: “Production of
99.95% Pure Vanadium Pentoxide and Vanadium Electrolytes”.
Figure 5: Process Engineer Greg O'Connor and Project Manager Trevor Smith inspecting the final stage of the
heap leach test
2022 Annual Report | 11
DIRECTORS’ REPORT (CONTINUED)
FeTi coproduct
During the year, AVL signed three Letters of Intent (LOI) for its iron titanium (FeTi) coproduct. AVL plans to
produce approximately 900,000 tonnes per annum (tpa) of FeTi coproduct from the Project, in addition to
approximately 11,200 tpa of vanadium pentoxide from its proposed mine and processing facility in the Mid-
West region of Western Australia4
. Sale of the FeTi coproduct is part of the AVL strategy to reduce overall
Project risk.
The first LOI was signed with Guangxi Shenglong Metallurgy International Pte Limited, the commercial arm of
Shenglong Metallurgy Co. Ltd.
Wingsing International Limited, the commercial arm of Tianzhu Steel signed the second LOI which has
subsequently been progressed to a non-binding Term Sheet post year end. The non-binding term sheet
extends the terms of the LOI and is the next step towards finalising a binding offtake agreement.
A third LOI for FeTi coproduct offtake sales was signed with Rizhao Steel Holding Group Co. Limited.
Geraldton Port
AVL signed a Joint Co-operation Agreement with Mid-West Ports Authority (MWPA) for the future use of
facilities and services at the key Mid-West resources sector port facility. The Project will ship approximately
900,000 dry tonnes per annum of its FeTi coproduct through the Port of Geraldton for the 25-year life of the
Project. Signing a Joint Co-operation Agreement allows AVL and MWPA to work co-operatively to define the
best alternatives for the storage and shipping needs of the Project. MWPA is actively planning for future growth
of the port facilities and AVL will become a key long-term partner in the Port’s proposed expanded capabilities.
The Port of Geraldton will also be used as a receiving port for AVL’s processing reagents and large break-bulk
equipment needed for the processing plant and crushing, milling and beneficiation plant at Meekatharra. It will
also enable the company to import renewable energy hardware for both Project sites.
MWPA has provided indicative quotes for AVL to access the Port at Geraldton for shipping and product storage,
which enabled these figures to be included in the BFS. Through this relationship, AVL and MWPA also seek
to define a long-term plan which integrates the needs of AVL with the strategic growth strategies of MWPA.
International Patent Application
Following a provisional patent application submission in 2021 AVL has progressed to filing a full international
patent application for its vanadium processing circuit to assist with the protection of intellectual property (IP)
generated during the BFS. The IP comprises an innovative combination of processes to maximise vanadium
recovery. The basis for the patent application is the specific sequence of beneficiation, pyrometallurgy and
hydrometallurgy which combine to produce a high purity vanadium product with exceptional recoveries.
A distinctive feature of the patent application is the ability to economically recover vanadium from oxidised and
transitional zones common to VTM deposits worldwide.
The pyrometallurgy process utilises pelletisation and a grate-kiln for roasting, which has been shown to
considerably improve vanadium extraction in comparison to conventional roasting. The hydrometallurgy
process includes a washing stage to produce a clean iron titanium coproduct. A combination of nanofiltration
and solvent extraction generates ultra-high purity vanadium for specialty applications.
AVL has built on established beneficiation and roast-leach technologies, with step-change improvements to
deliver superior vanadium recoveries. These processes have been demonstrated at pilot scale as shown in
Figure 6.
4 See ASX announcement dated 6th April 2022 ‘Bankable Feasibility Study for the Australian Vanadium Project’
2022 Annual Report | 12
DIRECTORS’ REPORT (CONTINUED)
Figure 6: AVL’s process includes reverse flotation, pelletisation, salt-roasting and leaching; demonstrated at full
pilot-scale from left-right
The patent application also covers a nano-filtration and solvent extraction stage for producing an ultra-high
purity vanadium as a value-added product. The feed for this operation is the wash solution generated in the
previous step. The nanofiltration stage upgrades the vanadium content of the solution, solvent extraction
removes impurities. The V2O5 product from this process will have a purity of >99.9%.
The patent application is recognised across 156 countries through the Patent Cooperation Treaty (PCT). Work
contributing to this patent application was partly funded by the Australian Government’s CRC-P grant.
Nickel-Copper-Gold-PGE at Gabanintha
Bryah Resources Limited (Bryah) undertook a 5,000m aircore drilling program at Gabanintha to investigate
the extent and zonation of the Lady Alma Layered Igneous Complex, which has significant potential to host
nickel-copper-gold and Platinum Group Elements (PGE) mineralisation. The Lady Alma Layered Igneous
Complex hosts the Australian Vanadium Project.
Samples were assayed for an extensive suite of elements, with the drilling being co-funded for up to $53,000
by the Western Australian State Government under its Exploration Incentive Scheme (EIS). The remainder of
the funding was split between Bryah and AVL. AVL is testing for new cobalt, chromium, vanadium and titanium
horizons in the drilling.
At Gabanintha, the location of the Australian Vanadium Project, Bryah holds the rights to all minerals except
vanadium, uranium, cobalt, chromium, titanium, lithium, tantalum, manganese and iron ore (Excluded
Minerals). AVL retains 100% rights in the Excluded Minerals on the Gabanintha Project.
Vanadium Electrolyte
AVL has signed a Memorandum of Understanding (MOU) with U.S. Vanadium LLC (USV) for the supply of
vanadium oxides for vanadium electrolyte production in Australia. The MOU includes a licence for low cost
USV technology to convert vanadium oxides to vanadium electrolyte for use in vanadium redox flow batteries
(VRFBs). The MOU covers exclusivity over the technology licence for Australia and New Zealand.
USV is a global leader in the production of high purity vanadium oxide products and a key vanadium battery
electrolyte supplier based in the USA. An initial order for USV vanadium oxides has arrived in Perth for
conversion and will be used in a commercial flow battery deployment.
Under the agreement, high purity vanadium oxides can be sourced from either USV or AVL and be used to
produce vanadium electrolyte for Australian battery installations. The agreement enables AVL to commence
commercial vanadium electrolyte production ahead of planned production of its own vanadium products, thus
leading Australian VRFB market development.
The technology and supply agreement complements AVL’s Manufacturing Translation Stream - Resources
Technology and Critical Minerals Processing Priority grant awarded in July 2021 to co-fund commercial
vanadium electrolyte manufacturing plant development in WA. The AVL facility will be the first full scale
vanadium electrolyte manufacturing plant in Australia.
Western Australian engineering group Primero (a subsidiary of NRW Holdings), has been appointed to
undertake the Early Contractor Involvement (ECI) for the building of AVL’s vanadium electrolyte manufacturing
plant. This will form stage 1 of the vanadium electrolyte manufacturing plant build process, with stage 2 being
the engineering, procurement, and construction (EPC).
2022 Annual Report | 13
DIRECTORS’ REPORT (CONTINUED)
The ECI stage incorporates analysis of the U.S. Vanadium LLC plant design, including alignment with
Australian standards, design layouts and EPC contract preparation. Vanadium electrolyte is the key
component of VRFBs which are used to store and redeploy renewable energy. The vanadium electrolyte plant
will initially be able to produce enough electrolyte per annum to fill VRFBs that can store up to 33MWh of
energy. For comparison, a single Tesla Powerwall stores 13.5kWh of energy, with the electrolyte plant
producing the equivalent energy storage capacity of 2,444 Powerwalls per year.
The facility will support the anticipated rapid growth of the long duration, renewable energy powered VRFB
market in Australia.
VSUN Energy
VSUN Energy Pty Ltd is the Company’s wholly owned subsidiary, with the sole focus of developing the
Australian market for vanadium redox flow batteries (VRFBs). The expansion of the Australian and global
VRFB market opens up significant new opportunities for additional consumption of high-purity vanadium
products used in vanadium electrolyte.
Water Corp trial
VSUN Energy installed a 5kW/30kWh VRFB for use on a trial basis at Water Corporation’s Innovation Hub in
Shenton Park, WA at its Water, Research and Innovation Precinct. The VRFB was initially trialled for use on
a mobile water purification unit, providing up to 100% renewable power to the system via a solar PV and VRFB
SPS.
VSUN Energy continues to work with Water Corporation to test, collect data and provide suitable options for
potential future use cases for VRFBs throughout Water Corporation’s operations. Of particular interest are
remote pumping applications and for supplying power to remote off grid energy loads, currently powered by
diesel generators.
Water Corporation is the principal supplier of water, wastewater, drainage and bulk irrigation services in
Western Australia and is owned by the Western Australian Government. Water Corporation manages almost
35,000km of water mains across an area greater than 2.6 million kilometres. Water Corporation has a
commitment to reducing its environmental footprint, with the use of renewable energy being one of the
solutions for doing this.
Standalone power system for IGO’s Nova Nickel Operation
VSUN Energy is installing a Standalone Power System (SPS) based on VRFB energy storage technology at
the IGO Limited (IGO) Nova Nickel Operation. A SPS supplies power independently to the electricity grid and
typically comprises a combination of solar, wind, battery and backup generation from diesel or gas.
The SPS being installed at IGO’s nickel operation is based around a 65kW/300kWh VRFB from E22 which
arrived in Western Australia in August 2022 (see Figure 7). The system has been designed to provide a 100%
renewable energy supply for much of the year for a bore field, with periods of long cloud cover being supported
by a diesel genset. Total renewable penetration of 85-90% is being targeted for the trial of the VRFB based
SPS system. The SPS can be redeployed for use on multiple mines sites and locations over its 20+ year
service life. The target of long periods with diesel-off will not only significantly reduce the carbon emissions of
2022 Annual Report | 14
DIRECTORS’ REPORT (CONTINUED)
diesel generator powered bore fields, but also offer substantial reductions in operating hours for service
personnel. These two significant benefits indicate a potentially rapid growth market segment for this robust
technology.
Figure 7: VRFB en route to testing facility in Perth
V-Flow Tech
Figure 8: VSUN Energy branded
V-Flow Tech 5kW/30kWh
VRFBs
by
Three 5kW/30kWh VRFBs
manufactured
AVL’s
Singaporean partner V-Flow
in
Tech arrived
September 2021. AVL and
VSUN Energy have previously
signed an MOU with V-Flow for
vanadium pentoxide offtake,
vanadium electrolyte supply,
VRFB
installation,
sales,
service and maintenance.
have
companies
The
developed a strong relationship
with V-Flow Tech, with the
three batteries being the first from the manufacturer in Australia. The installations will further increase the
companies’ in-house experience and provide valuable local operating examples of the Australian-invented
storage technology.
in Perth
2022 Annual Report | 15
DIRECTORS’ REPORT (CONTINUED)
Coates and Nowthanna Hill Projects
The Coates vanadium deposit is situated approximately 35km east of metropolitan Perth in the Shire of
Wundowie. Exploration at Coates was undertaken in the 1970s after its discovery in the early 1960s. Mining
plans have previously been produced by Agnew Clough Ltd on the Coates vanadium deposit, although no
significant mining was undertaken.
The Nowthanna Hill uranium-vanadium deposit is located 50km south of Meekatharra in Western Australia
and is hosted within calcrete and clay deposits, formed within the inland drainage as a result of the weathering
of granites containing high background radiation.
Copper and PGE soil anomalism (Coates)
An initial soil survey undertaken by AVL at Coates highlighted a prospective sequence of Ni, Cu, PGE bearing
rock untested by recent exploration. Copper anomalism at the project is comparable with significant soil
signatures at Chalice Gold Mines’ Julimar Project. Elevated nickel and chrome were present in soils in a new
PGE anomaly identified in NW of soil grid.
The Company also secured 200m of historical diamond drill core from Coates Project for PGE and base metals
analysis.
Three conductors were identified by a SkyTEM Airborne Electromagnetics (AEM) survey at Coates, with the
largest having a strike length of 1,900 metres. This coherent 1,900m long bedrock conductor is present to the
northeast and parallel to the Coates magnetite gabbro. The AEM results are highly encouraging considering
the success of the method in other discoveries in the area. The new data supports the matching geological
setting for Ni-PGE bearing host rocks.
In June 2022, the Company announced the partial completion of a drill program at Coates. An 11-hole program
of Reverse Circulation (RC) pre-collar and diamond tail drilling was undertaken, with all pre-collars completed
for 840.6 metres of RC. Partial completion of the diamond drilling portion of the project was achieved, with
169.6 metres of diamond coring over three holes and cessation of the program early due to budget limitations.
The drill line remains open and the Programme of Work (PoW) approval remains active. Drilling of the diamond
tail portion of the program will be completed pending sale of the project to Mining Green Metals (MGM), subject
to its successful listing on the Australian Securities Exchange (ASX)5. The drilling at Coates Project was co-
funded through the WA Government’s Exploration Incentive Scheme (EIS)6. The grant was for up to $112,500,
representing half of the cost of the program.
Despite being stopped early due to budget limitations, the program as completed to date provides a significant
section of geochemical samples in the percussion components of the drill holes. Importantly, the diamond core
now available for the Australian Government’s Commonwealth Scientific and Industrial Research Organisation
(CSIRO) Nickel Indicator Study of the Coates Mafic Complex extends 350 to 500 metres further northeast into
the intrusion and approaching the zone of the SkyTEM and surface Ni, Pt and Cr anomalism previously
identified.
The assays for the eleven pre-collars were submitted in June 2022 for analysis with results received
subsequent to year end.7 Elevated copper, nickel and/or palladium and platinum was intersected in four of the
RC pre-collars, holes being 22CRC007, 22CRD008, 22CRC009 and 22CRD011. Most anomalous results are:
22CRC007 – 10 m @ 0.13% Cu, 493ppm Ni, 39ppb Pd and 21ppb Pt from 64m
o
Including 7m @ 0.14% Cu, 544ppm Ni, 43ppb Pd and 23ppb Pt from 67m
22CRC007 – 1m @ 700ppm Ni, 40ppb Pd and 40ppb Pt from 55m
22CRD008 – 6m @ 358ppm Ni, 54ppb Pd and 41ppb Pt from 11m
22CRC009 – 6m @ 0.12% Cu and 525ppm Ni from 38m
22CRD011 – 1m @ 45ppb Pd and 45ppb Pt from 66m
22CRD011 – 1m @ 60ppb Pd and 55ppb Pt from 81m.
5 See ASX announcement dated 11th May 2022 ‘Sale of Coates Nickel-Copper-PGE and Nowthanna Hill Uranium Projects’
6 See ASX announcement dated 23rd April 2021 “Grant Funding for Nickel-Copper-PGE-Gold Drilling at Coates Project”
7 See ASX announcement dated 15th September 2022 “Drill Results at Coates Nickel-Copper-PGE Project Confirm Prospectivity”
2022 Annual Report | 16
DIRECTORS’ REPORT (CONTINUED)
The location of these holes and the downhole results listed above are shown in Figure 9 below.
Figure 9: Section view of EIS Drill Line with Copper, Nickel, Palladium and Platinum Results
Sale of Coates Nickel-Copper-PGE and Nowthanna Hill Uranium Projects
An option agreement was signed in May 2022 with Mining Green Metals (MGM) for MGM to acquire a 100%
interest in the Coates and Nowthanna Hill Project tenements, application and associated mining information.5
The Option will provide the following benefits to AVL and its shareholders:
AVL to receive 6,500,000 fully paid ordinary shares in MGM
A 0.75% net smelter return royalty from the value of the minerals mined (Coates Project)
A cash payment of $190,000.
The tenements included in the Option are:
E70/4924-I (Coates Project)
E70/5588 (Coates Project)
ELA 70/5589 (upon grant); (Coates Project) and
M51/771 (Nowthanna Hill Project).
MGM may exercise the Option by giving written notice exercising the Option to AVL at any time between the
period commencing on the execution date and ending 12 months after the execution date. If the Option is not
exercised by MGM during the option exercise period, the Option shall lapse.
If MGM exercises the Option, completion of the acquisition is subject to, and conditional on the satisfaction of
the following conditions precedent on or before the period ending 2 months after the date of the option exercise
notice:
(a) MGM advising AVL that it has completed its due diligence investigations on the Tenements and
Application to the satisfaction of MGM in its absolute discretion;
2022 Annual Report | 17
DIRECTORS’ REPORT (CONTINUED)
(b) MGM having received listing approval from ASX for its shares to be admitted to the official list of ASX,
subject only to completion of the Acquisition and such other conditions as are acceptable to MGM (acting
reasonably); and
AVL either obtaining approval from its shareholders, if necessary, or ASX providing written advice to
AVL that such shareholder approval is not required.
(c)
Bryah Resources Limited
As at the date of this report, AVL holds 13.88 million shares in Bryah, which represents a 4.97% holding in that
company (11.25 million shares were held at 30 June 2022, representing a 4.97% holding). Bryah Resources
Limited is a gold, base metals and manganese exploration company with tenements exclusively in Western
Australia.
2022 Annual Report | 18
DIRECTORS’ REPORT (CONTINUED)
DIRECTORS
The names of the Directors of the Company in office during or since the end of the financial year and up to the
date of this report are as follows. Directors were in office for this entire period unless otherwise stated.
Mr Cliff Lawrenson
Non-Executive Chairman
Vincent Algar
Leslie Ingraham
Daniel Harris
Managing Director
Executive Director
Non-Executive Director
The qualifications, experience and special responsibilities of each Director are as follows:
Cliff Lawrenson – BCom (Hons)
Mr Cliff Lawrenson holds postgraduate qualifications in commerce and finance and has worked extensively in
project development and investment banking around the world, including in South Africa, Australia, USA and
Singapore. Mr Lawrenson is an experienced mining executive and director with deep expertise in minerals and
energy sectors derived from his considerable global experience. He has a successful track record of leading
strategic direction in companies and executing corporate transactions.
Mr Lawrenson’s previous roles include Managing Director of Atlas Iron Ltd from January 2017 until its
acquisition in 2018 by Hancock Prospecting Pty Ltd. Prior to this he led several ASX listed companies through
various stages of development. Mr Lawrenson held the position of Group Chief Executive Officer of GRD Ltd
from 2006 to 2009 which incorporated GRD Minproc Ltd, OceanaGold Ltd and Global Renewables. Prior to
joining GRD Ltd, Mr Lawrenson was a senior executive and vice president of CMS Energy Corporation in the
USA and Singapore for seven years. An investment banking career preceded the above.
Other ASX listed company directorships (current and past three years):
Paladin Energy Ltd (since 2019)
Caspin Resources (since 2020)
Canyon Resources (since 2020, resigned August 2022)
Mr Lawrenson is also non-executive director of Onsite Rental Group (since 2020) and Pacific Energy Pty
Limited (since 2010).
Committee membership:
Member of the Audit & Risk Committee
Chairperson of the Remuneration, Nomination and Governance Committee
Member of the Technical and Sustainability Committee
Vincent Algar – BSC (Hons) Geology MAusIMM
Mr Vincent Algar is a geologist by profession with over 32 years of experience in the mining industry spanning
underground and open cut mining operations, greenfields exploration, project development and mining
services in Western Australia and Southern Africa. He has significant experience in the management of publicly
listed companies, which includes the entire compliance, marketing and management process and
encompasses the development of internal geological and administrative systems, exploration planning and
execution, plus project acquisition and deal completion.
Other directorships (current and past three years):
Nil.
2022 Annual Report | 19
DIRECTORS’ REPORT (CONTINUED)
Leslie Ingraham
Mr Ingraham has been in private business for over 30 years and is an experienced mineral prospector and
professional investor. He has successfully worked as a consultant for both private companies and companies
listed on the ASX. Core competencies include capital raising and shareholder liaison.
Other directorships (current and past three years):
Bryah Resources Limited - since 2017
Committee membership:
Member of the Audit & Risk Committee
Member of the Remuneration, Nomination and Governance Committee
Member of the Technical and Sustainability Committee
Daniel Harris
Mr Harris brings with him a vast amount of expertise in the vanadium industry and an understanding of the
resource sector from both a technical and financial perspective. Recent roles include the interim CEO and
Managing Director at Atlas Iron Limited; CEO & Chief Operating Officer at Atlantic Ltd; Vice President & Head
of Vanadium Assets at Evraz Group; Managing Director at Vametco Alloys; General Manager of Vanadium
Operations at Strategic Minerals Corporation and as an independent technical and executive consultant to
GSA Environmental Limited in the United Kingdom.
During the past three years, Mr Harris was a director of the following ASX listed companies:
Atlas Iron Limited – resigned 2019
Paladin Energy Limited – resigned 2019
QEM (Queensland Energy Minerals) Limited – since 2018
Flinders Mines Limited – appointed 8 August 2022
Committee membership:
Chairperson of the Audit & Risk Committee
Member of the Remuneration, Nomination and Governance Committee
Chairperson of the Technical and Sustainability Committee
COMPANY SECRETARY
Neville Bassett
Mr Bassett is a Chartered Accountant with over 35 years of experience. He has been involved with a diverse
range of Australian public listed companies in directorial, company secretarial and financial roles.
2022 Annual Report | 20
DIRECTORS’ REPORT (CONTINUED)
INTERESTS IN SHARES AND PERFORMANCE RIGHTS OF THE COMPANY
As at the date of this report, the interests of the Directors and executives in the shares and rights of Australian
Vanadium Limited were:
Vincent Algar
Leslie Ingraham
Cliff Lawrenson
Daniel Harris
Todd Richardson
Liesl Strachan 2
Number of
Ordinary Shares
7,663,436
30,478,774
-
2,500,000
3,013,125
731,250
Number of Unlisted
Performance Rights 1
48,000,000
32,000,000
24,000,000
20,000,000
7,500,000
-
1 As at reporting date these performance rights have not been exercised by directors and/or executives.
2 Ms Strachan was appointed 1 July 2021. Ms Strachan exercised 121,875 performance rights on 5 September 2022.
MEETINGS OF DIRECTORS
The number of meetings of Directors (including meetings of committees of Directors) held during the year and
the number of meetings attended by each Director were as follows:
Directors
Directors’ Meetings
Remuneration
Committee Meetings
Audit and Risk
Committee Meetings
Cliff Lawrenson
Vincent Algar
Leslie Ingraham
Daniel Harris
Eligible
6
6
6
6
Attended
6
6
6
6
Eligible
1
-
1
1
Attended
1
-
1
1
Eligible
2
-
2
2
Attended
2
-
2
2
Technical and
Sustainability
Committee Meetings
Attended
Eligible
1
1
-
-
1
1
1
1
INSURANCE OF OFFICERS
The Company has in place an insurance policy insuring Directors and Officers of the Company against any
liability arising from a claim brought by a third party against the Company or its Directors and Officers, and
against liabilities for costs and expenses incurred by them in defending any legal proceedings arising out of
their conduct whilst acting in their capacity as a Director or Officer of the Company, other than conduct involving
a wilful breach of duty in relation to the Company.
In accordance with a confidentiality clause under the insurance policy, the amount of the premium paid to the
insurers has not been disclosed. This is permitted under Section 300(9) of the Corporations Act 2001.
2022 Annual Report | 21
DIRECTORS’ REPORT (CONTINUED)
ENVIRONMENTAL REGULATIONS
The Group’s operations are subject to various environmental laws and regulations under government
legislation. The exploration tenements held by the Group are subject to these regulations and there have not
been any known breaches of any environmental regulations during the year under review and up until the date
of this report.
CORPORATE INFORMATION
Nature of Operations and Principal Activities
The principal continuing activities during the year of entities within the Consolidated Entity were the
advancement of the Australian Vanadium Project, exploration for vanadium/titanium and other economic
resources, development of vanadium electrolyte production and the sale of VRFB systems.
Corporate Structure
Australian Vanadium Limited is a limited liability company that is incorporated and domiciled in Australia. The
Company has prepared a consolidated financial report incorporating the entities that it controlled during the
financial year as follows:
Australian Vanadium Limited
VSUN Energy Pty Ltd
South African Lithium Pty Ltd
Australian Uranium Pty Ltd
Cabe Resources Limited
Parent entity
100% owned controlled entity
100% owned controlled entity
100% owned controlled entity
100% owned controlled entity
OPERATING AND FINANCIAL REVIEW
Operating Review
A review of operations for the financial year is contained within this Directors’ Report. The consolidated loss
after income tax for the financial year was $5,036,430 (2021: $3,140,752).
Financial Position
At 30 June 2022, the Group had cash reserves of $26,443,986 (2021: $3,495,613). The net assets of the
Group have increased by $29,137,291. The increase is largely a result of funds received from capital raisings
and conversion of options exceeding payments for the advancement of the Australian Vanadium Project,
exploration and general overheads.
Refer to Note 1(b) for further disclosures regarding the Group’s financial position.
2022 Annual Report | 22
DIRECTORS’ REPORT (CONTINUED)
Dividends
No dividends were paid during the year and no recommendation is made as to dividends.
SIGNIFICANT CHANGES IN THE STATE OF AFFAIRS
Significant changes in the state of affairs of the Company during the financial year are detailed in the
Company’s review of operations. In the opinion of the Directors, there were no other significant changes in the
state of affairs of the Company that occurred during the financial year under review not otherwise disclosed in
this Annual Report.
EVENTS SUBSEQUENT TO REPORTING DATE
On 11 August 2022 the Company issued 4,000,000 shares for the conversion of options (exercisable at $0.025,
expiring 18 December 2022) which raised $100,000.
On 18 August 2022 the Company issued 17,800,000 shares for the conversion of options (exercisable at
$0.025, expiring 18 December 2022) which raised $445,000.
On 25 August 2022 the Company issued 1,306,666 shares for the conversion of options (exercisable at $0.025,
expiring 18 December 2022) which raised $32,667.
Following the exercise of performance rights (expiry 30 July 2026) the Company issued 3,218,875 shares for
nil consideration on 5 September 2022.
On 8 September 2022 the Company issued 400,000 shares for the conversion of options (exercisable at
$0.025, expiring 18 December 2022) which raised $10,000.
On 15 September 2022 the Company issued 6,338,260 shares for the conversion of options (exercisable at
$0.025, expiring 18 December 2022) which raised $158,456.50.
No other matters or circumstances have arisen since the end of the financial year which significantly affected,
or may significantly affect, the operations of the Company, the results of those operations, or the state of affairs
of the Company in subsequent financial years, other than as outlined in the Company’s review of operations
which is contained in this Annual Report.
DEVELOPMENTS AND EXPECTED RESULTS
The Group will continue to focus on mineral exploration and development opportunities, as outlined in the
Company’s review of operations, with the objective of developing a profitable and sustainable mining operation.
2022 Annual Report | 23
DIRECTORS’ REPORT (CONTINUED)
REMUNERATION REPORT (AUDITED)
This report details the nature and amount of remuneration for each director and executive of Australian
Vanadium Limited. The information provided in the remuneration report includes remuneration disclosures that
are audited as required by section 308(3C) of the Corporations Act 2001.
For the purposes of this report Key Management Personnel of the Group are defined as those persons having
authority and responsibility for planning, directing and controlling the major activities of the Group, directly or
indirectly, including any director (whether executive or otherwise) of the parent company.
For the purposes of this report the term “executive” includes those Key Management Personnel who are not
Directors of the parent company.
Remuneration Policy
The Board policy is to remunerate Directors at market rates for time, commitment and responsibilities. The
Board determines payments to the Directors and reviews their remuneration annually, based on market
practice, duties and accountability. Independent external advice is sought when required.
The maximum aggregate amount of Directors’ fees that can be paid is subject to approval by shareholders in
a general meeting, from time to time. Fees for non-executive directors are not linked to the performance of the
Consolidated Entity. However, to align Directors’ interests with shareholders’ interests, the Directors are
encouraged to hold shares in the Company.
The Company’s aim is to remunerate at a level that will attract and retain high-calibre directors and employees.
Company Directors and Officers are remunerated to a level consistent with the size of the Company.
The Executive Directors and full-time Executives receive a superannuation guarantee contribution required by
the government and do not receive any other retirement benefits. Some individuals, however, may choose to
sacrifice part of their salary to increase payments towards superannuation.
All remuneration paid to Directors and Executives is valued at the cost to the Company and expensed. The
Board believes that it has implemented suitable practices and procedures that are appropriate for an
organisation of its size and maturity. As part of the remuneration policy, the Company issues incentive options
and performance rights to Directors and other Key Management Personnel.
2022 Annual Report | 24
DIRECTORS’ REPORT (CONTINUED)
Remuneration Structure
In accordance with best practice corporate governance, the structure of non-executive director and executive
compensation is separate and distinct.
Non-Executive Director Compensation
Objective
The Board seeks to set aggregate compensation at a level that provides the Company with the ability to attract
and retain directors of the highest calibre, whilst incurring a cost that is acceptable to shareholders.
Structure
The Constitution and the ASX Listing Rules specify that the aggregate compensation of non-executive
directors shall be determined from time to time by a general meeting. An amount not exceeding the amount
determined is then divided between the Directors as agreed. The latest determination approved by
shareholders was an aggregate compensation of $500,000 per year.
The amount of aggregate compensation sought to be approved by shareholders and the manner in which it is
apportioned amongst Directors is reviewed annually. The Board considers advice from external consultants
as well as the fees paid to non-executive directors of comparable companies when undertaking the annual
review process. Non-Executive Directors’ remuneration may include an incentive portion consisting of either
options, performance rights, service rights, deferred shares, exempt shares, cash right or stock appreciation
rights (as defined in the Australian Vanadium Employee Incentive Plan), as considered appropriate by the
Board, which may be subject to shareholder approval in accordance with ASX Listing Rules.
Separate from their duties as Directors, the Non-Executive Directors may undertake work for the Company
directly related to the evaluation and implementation of various business opportunities, including mineral
exploration/evaluation and new business ventures, for which they receive a daily rate. These payments are
made pursuant to individual agreement with the Non-Executive Directors and are not taken into account when
determining their aggregate remuneration levels.
Executive Compensation
Objective
The entity aims to reward Executives with a level and mix of compensation commensurate with their position
and responsibilities within the entity so as to:
reward Executives for company and individual performance against targets set by appropriate
benchmarks;
align the interests of Executives with those of shareholders;
ensure total compensation is competitive by market standards.
link rewards with the strategic goals and performance of the Company; and
Structure
In determining the level and make-up of executive remuneration, the Board negotiates a remuneration to reflect
the market salary for a position and individual of comparable responsibility and experience. The Company has
established a separate remuneration committee.
Remuneration is regularly compared with the external market by participation in industry salary surveys and
during recruitment activities generally. If required, the Board may engage an external consultant to provide
independent advice in the form of a written report detailing market levels of remuneration for comparable
executive roles.
2022 Annual Report | 25
DIRECTORS’ REPORT (CONTINUED)
Remuneration consists of a fixed remuneration and a long-term incentive portion as considered appropriate.
Compensation may consist of the following key elements:
Fixed Compensation;
Variable Compensation;
Short Term Incentive (STI); and
Long Term Incentive (LTI).
Fixed Remuneration
The level of fixed remuneration is set so as to provide a base level of remuneration which is both appropriate
to the position and is competitive in the market. Fixed remuneration is reviewed annually by the Board having
regard to the Company and individual performance, relevant comparable remuneration in the mining
exploration sector and external advice. The fixed remuneration is a base salary or monthly consulting fee.
Variable Pay - Long Term Incentives
The objective of long-term incentives is to reward directors/executives in a manner which aligns this element
of remuneration with the creation of shareholder wealth. The incentive portion is payable based upon
attainment of objectives related to the Director’s/Executive’s job responsibilities. The objectives vary, but all
are targeted to relate directly to the Company’s business and financial performance and thus to shareholder
value.
Long term incentives (LTIs) granted to directors and executives are delivered in the form of options or
performance rights. LTIs granted to executives are delivered in the form of employee share options or
performance rights. Options are issued at an exercise price determined by the Board at the time of issue. The
employee share options generally vest over a selected period.
The objective of the granting of options or rights is to reward executives in a manner which aligns the element
of remuneration with the creation of shareholder wealth. As such LTIs are made to executives who are able to
influence the generation of shareholder wealth and thus have an impact on the Company’s performance.
The level of LTIs granted is, in turn, dependent on the Company’s recent share price performance, the seniority
of the executive, and the responsibilities the executive assumes in the Company.
Typically, the grant of LTIs occurs at the commencement of employment or in the event that the individual
receives a promotion and, as such, is not subsequently affected by the individual’s performance over time.
Employment Contracts of Directors and Senior Executives
The employment arrangements of the Executive Director is not formalised in a contract of employment.
Remuneration and other terms of employment for the Managing Director and Key Management Personnel are
formalised in employment contracts. Major provisions are set out below.
Vincent Algar is engaged as Managing Director
Remuneration is as follows:
Gross base salary of $320,000 plus statutory superannuation
20 days annual leave per annum and statutory long service leave
Notice period required to be given by the Company – 6 months, except in the case of gross misconduct
Notice period required to be given by the Executive – 3 months
Termination payment – 12 months, inclusive of notice period
2022 Annual Report | 26
DIRECTORS’ REPORT (CONTINUED)
Employment Contracts of Directors and Senior Executives (ctd)
Todd Richardson is engaged as Chief Operating Officer
Remuneration is as follows:
Gross base salary of $310,000 plus statutory superannuation
20 days annual leave per annum and statutory long service leave
Notice period required to be given by the Company – 2 months, except in the case of gross misconduct
Notice period required to be given by the Executive – 2 months
Termination payment – payment equal to notice period
Liesl Strachan (appointed 1 July 2021) is engaged as Chief Financial Officer (part-time)
Remuneration is as follows:
Gross base salary of $94,936 plus statutory superannuation
20 days annual leave per annum (pro-rata) and statutory long service leave
Notice period required to be given by the Company – 1 month, except in the case of gross misconduct
Notice period required to be given by the Executive – 1 month
Termination payment – payment equal to notice period
2022 Annual Report | 27
DIRECTORS’ REPORT (CONTINUED)
Details of Remuneration for the Year
The key management personnel (KMP) include the directors of Australian Vanadium Limited and the Executive
KMP (the Chief Operating Officer (COO) and the Chief Financial Officer (CFO)) who have authority for planning,
directing and controlling the major activities of the Group, directly or indirectly. The KMP for the 2022 financial
year are as follows:
50,117
59,120
832,051
370,749
11,939
4,150
1,592,307
1,176,463
Short-
Term
Benefits
Salary &
Fees
Post
Employment
Super-
annuation
Share-
Based
Payments
Perf.
Rights
$
-
3,628
30,875
30,875
19,242
18,284
-
6,333
$
161,043
71,758
322,084
143,516
214,722
95,677
-
-
-
-
134,202
59,798
30,645
140,393
30,820
3,083
94,936
9,494
13,957
-
-
-
Directors
Cliff Lawrenson 1
Vincent Algar
Leslie Ingraham 2
Brenton Lewis 3
Daniel Harris
Total Directors
Executives
Todd Richardson
(Chief Operating
Officer)
Liesl Strachan4
(Chief Financial
Officer)
Total Executives
$
95,000
58,310
310,000
325,000
193,200
192,467
-
66,667
100,000
100,000
698,200
742,444
305,000
324,423
Year
2022
2021
2022
2021
2022
2021
2022
2021
2022
2021
2022
2021
2022
2021
2022
2021
Long-
Term
Benefits
Long
Serv.
Leave
$
-
-
6,735
-
5,204
4,150
-
-
-
-
Total
$
256,043
133,696
669,694
499,391
432,368
310,578
-
73,000
234,202
159,798
-
-
-
-
-
-
476,038
358,326
118,387
-
594,425
358,326
Performance
Based
Remuneration
%
63%
54%
48%
29%
50%
31%
-
0%
57%
37%
52%
32%
29%
1%
12%
-
26%
1%
45%
24%
2022
2021
399,936
324,423
154,350
3,083
40,139
30,820
90,256
89,940
Key Management
Personnel
2022
2021
1,098,136
1,066,867
986,401
373,832
11,939
4,150
2,186,732
1,534,789
1 Mr Lawrenson was appointed Non-Executive Director on 12 October 2020; appointed Non-Executive Chairman on 25 November 2020.
2
The Group paid Streamline Capital Pty Ltd (a related party of Mr Leslie Ingraham) $97,913 during the period (refer to Note 18b).
3 Mr Lewis resigned 25 November 2020.
4 Ms Strachan was appointed 1 July 2021.
No other performance-related payments were made during the year. Performance hurdles are not attached to
remuneration options if issued, however the Board determines appropriate vesting periods to provide rewards
over a period of time to Key Management Personnel.
2022 Annual Report | 28
DIRECTORS’ REPORT (CONTINUED)
Compensation Options Granted to Key Management Personnel
No options were granted to Directors or Executives during the year ended 30 June 2022.
Performance Rights and Shares Issued to Key Management Personnel on
Exercise of Compensation Options
On 17 February 2022, 609,375 performance rights held by Ms Strachan converted to ordinary shares.
Compensation Options Lapsed During the Year
No options previously issued to Key Management Personnel lapsed during the year.
Share Holdings of Key Management Personnel
Balance
1 July
2021
Received as
Remuneration
Shares
Issued on
Conversion
of
Performance
Rights
Acquired/
(Disposed)
Net
Change/
Other
Balance
30 June 2022
Directors
Cliff Lawrenson
Vincent Algar
Leslie Ingraham
Daniel Harris
Todd Richardson
Liesl Strachan 1,2
-
7,663,436
30,478,774
2,500,000
4,213,125
-
-
-
-
-
-
-
-
-
-
-
-
609,375
-
-
-
-
(1,200,000)
-
-
-
-
-
-
-
-
7,663,436
30,478,774
2,500,000
3,013,125
609,375
1 Ms Strachan was appointed 1 July 2021.
2 On 17 February 2022, 609,375 performance rights held by Ms Strachan converted to ordinary shares.
Performance Rights Granted as Remuneration
There were 8,231,250 performance rights issued to Key Management Personnel during the year (2021:
124,000,000 issued to Directors).
The fair value of each tranche of performance rights granted to Key Management Personnel during the year
were determined using a trinomial options pricing model with the following inputs:
Effective interest rate: 0.56%
Volatility: 101.81%
Expiry date: 29 July 2026
Share price at grant date: $0.02
Exercise price: nil
2022 Annual Report | 29
DIRECTORS’ REPORT (CONTINUED)
The performance rights were granted for nil consideration and vested subject to certain market and
performance conditions being met, as outlined in the table below. As at 30 June 2022, all conditions had been
met and the performance rights were fully vested.
Name
Number
Performance Condition
Todd Richardson
2,250,000 Tranche 6: Completion of a bankable feasibility study on
the Australian Vanadium Project.
Fair
Value per
Tranche
$0.02
1,750,000 Tranche 7: Share price of at least $0.025 VWAP over
20 consecutive trading days on which the Company's
shares have actually traded.
1,750,000 Tranche 8: Share price of at least $0.03 VWAP over 20
consecutive trading days on which the Company's
shares have actually traded.
1,750,000 Tranche 9: Share price of at least $0.04 VWAP over 20
consecutive trading days on which the Company's
shares have actually traded.
$0.0188
$0.0183
$0.0174
Liesl Strachan
365,625 Tranche 5: Continuous employment from the date of
$0.02
grant of performance right until 31 December 2021.
121,875 Tranche 7: Share price of at least $0.025 VWAP over
20 consecutive trading days on which the Company's
shares have actually traded.
121,875 Tranche 8: Share price of at least $0.03 VWAP over 20
consecutive trading days on which the Company's
shares have actually traded.
121,875 Tranche 9: Share price of at least $0.04 VWAP over 20
consecutive trading days on which the Company's
shares have actually traded.
$0.0188
$0.0183
$0.0174
The fair value of the performance rights granted to the directors during the year end 30 June 2021 were
determined using a trinomial options pricing model with the following inputs:
Effective interest rate: 0.335%
Volatility: 107.63%
Expiry date: 2 December 2025
Share price at grant date: $0.013
Exercise price: nil
2022 Annual Report | 30
DIRECTORS’ REPORT (CONTINUED)
The performance rights were granted for nil consideration and vest subject to certain market performance
conditions being met, as outlined in the below table. Tranche 1, being 31,000,000 performance rights, had fully
vested at 30 June 2021. As at 30 June 2022, all conditions had been met and the remainder of the performance
rights were fully vested.
Name
Number
Performance Condition
Vincent Algar
Leslie Ingraham
Cliff Lawrenson
Daniel Harris
12,000,000 Share price of at least $0.025 over 20 consecutive
trading days on which the Company's shares have
actually traded (fully vested at 30 June 2021)
12,000,000 Share price of at least $0.03 over 20 consecutive trading
days on which the Company's shares have actually
traded
12,000,000 Share price of at least $0.04 over 20 consecutive trading
days on which the Company's shares have actually
traded
12,000,000 Share price of at least $0.05 over 20 consecutive trading
days on which the Company's shares have actually
traded
8,000,000 Share price of at least $0.025 over 20 consecutive
trading days on which the Company's shares have
actually traded (fully vested at 30 June 2021)
8,000,000 Share price of at least $0.03 over 20 consecutive trading
days on which the Company's shares have actually
traded
8,000,000 Share price of at least $0.04 over 20 consecutive trading
days on which the Company's shares have actually
traded
8,000,000 Share price of at least $0.05 over 20 consecutive trading
days on which the Company's shares have actually
traded
6,000,000 Share price of at least $0.025 over 20 consecutive
trading days on which the Company's shares have
actually traded (fully vested at 30 June 2021)
6,000,000 Share price of at least $0.03 over 20 consecutive trading
days on which the Company's shares have actually
traded
6,000,000 Share price of at least $0.04 over 20 consecutive trading
days on which the Company's shares have actually
traded
6,000,000 Share price of at least $0.05 over 20 consecutive trading
days on which the Company's shares have actually
traded
5,000,000 Share price of at least $0.025 over 20 consecutive
trading days on which the Company's shares have
actually traded (fully vested at 30 June 2021)
5,000,000 Share price of at least $0.03 over 20 consecutive trading
days on which the Company's shares have actually
traded
5,000,000 Share price of at least $0.04 over 20 consecutive trading
days on which the Company's shares have actually
traded
5,000,000 Share price of at least $0.05 over 20 consecutive trading
days on which the Company's shares have actually
traded
2022 Annual Report | 31
Fair
Value
$0.009
$0.0123
$0.0089
$0.0086
$0.009
$0.0123
$0.0089
$0.0086
$0.009
$0.0123
$0.0089
$0.0086
$0.009
$0.0123
$0.0089
$0.0086
DIRECTORS’ REPORT (CONTINUED)
Performance Rights Holdings of Key Management Personnel
Balance
1 July
2021
24,000,000
48,000,000
32,000,000
20,000,000
-
-
Directors
Cliff Lawrenson
Vincent Algar
Leslie Ingraham
Daniel Harris
Todd Richardson
Liesl Strachan1,2
Granted as
Remuneration
Vested &
Converted
Lapsed/
Cancelled
Balance
30 June 2022
Number
Vested &
Exercisable
-
-
-
-
7,500,000
731,250
-
-
-
-
-
(609,375)
-
-
-
-
-
-
24,000,000
48,000,000
32,000,000
20,000,000
7,500,000
121,875
24,000,000
48,000,000
32,000,000
20,000,000
7,500,000
121,875
1 Ms Strachan was appointed 1 July 2021.
2 During the year, Ms Strachan converted 609,375 performance rights into ordinary shares. On 5 September 2022, Ms Strachan
converted 121,875 performance rights into shares.
On vesting and notice of exercise, each right converts to one ordinary share. If the employee ceases
employment before the rights vest, the rights will be forfeited, except in limited circumstances that are approved
by the Board.
All equity transactions with Key Management Personnel have been entered into under terms and conditions
no more favourable than those the Group would have adopted if dealing at arm’s length.
Loans and Other Transactions with Key Management Personnel
There were no loans to or from, or other transactions with, Key Management Personnel.
This ends the audited Remuneration Report
2022 Annual Report | 32
DIRECTORS’ REPORT (CONTINUED)
SHARE OPTIONS
As at the date of this report, unissued ordinary shares under option are as follows:
Listed options (AVLOA)
Number
325,540,427
Exercise Price
$0.025
Expiry Date
18 December 2022
AUDITOR
Armada Audit & Assurance Pty Ltd continues in office in accordance with Section 327 of the Corporations Act
2001.
NON-AUDIT SERVICES
No non-audit services were provided by our auditors, Armada Audit & Assurance Pty Ltd during the year ended
30 June 2022.
AUDITOR’S DECLARATION OF INDEPENDENCE
The auditor’s independence declaration for the year ended 30 June 2022, as required under section 307C of
the Corporations Act 2001, has been received and is included within the financial report.
Signed in accordance with a resolution of Directors.
Cliff Lawrenson
Chairman
30 September 2022
2022 Annual Report | 33
CONSOLIDATED STATEMENT
OF PROFIT OR LOSS AND OTHER
COMPREHENSIVE INCOME
For the year ended 30 June 2022
Battery revenue
Cost of sales
Gross profit
Other income
Exploration and evaluation expenditure
Depreciation
Amortisation of lease liability
Finance costs
Share-based payments
Directors’ fees and benefits expense
Employee benefits expense
Other expenses
Loss before income tax expense
Income tax expense
Net loss for year
Other comprehensive income
Other comprehensive income for the year, net of tax
Items that cannot be subsequent reclassified to
profit and loss
Movement in fair value of investment classified as fair
value through OCI
Total comprehensive loss attributable to
members of Australian Vanadium Limited
Note
2(a)
2(a)
2(a)
9
8(a)
2(b)
14(g)
2(c)
2(d)
3
Consolidated
2022
$
(34,329)
26,433
(7,896)
2021
$
34,329
(26,433)
7,896
90,672
146,033
(133,780)
(65,522)
(46,394)
(9,077)
(1,480,445)
(195,000)
(1,231,002)
(1,957,986)
(648,663)
(57,394)
(75,320)
(22,540)
(400,832)
(234,938)
(942,999)
(911,995)
(5,036,430)
-
(3,140,752)
-
(5,036,430)
(3,140,752)
10
(326,250)
123,750
(5,362,680)
(3,017,002)
Cents
(0.15)
Cents
(0.11)
Basic/diluted earnings per share
5
The accompanying notes form part of these financial statements.
2022 Annual Report | 34
CONSOLIDATED STATEMENT
OF FINANCIAL POSITION
As at 30 June 2022
ASSETS
Current assets
Cash and cash equivalents
Trade and other receivables
Total current assets
Non-current assets
Plant and equipment
Exploration and evaluation expenditure
Financial assets
Right-of-use assets
Total non-current assets
TOTAL ASSETS
LIABILITIES
Current liabilities
Trade and other payables
Provisions
Grant liability
Lease liability
Total current liabilities
Non-current liabilities
Provisions
Lease liability
Total non-current liabilities
TOTAL LIABILITIES
NET ASSETS
EQUITY
Issued capital
Reserves
Accumulated losses
TOTAL EQUITY
CONSOLIDATED
2022
$
2021
$
Note
6
7
8
9
10
11
12
13
12
26,443,986
1,265,497
3,495,613
567,337
27,709,483
4,062,950
620,143
35,627,356
337,500
36,926
238,775
28,502,403
663,750
83,320
36,621,925
29,488,248
64,331,408
33,551,198
899,779
150,467
2,581,947
32,314
1,888,174
108,524
-
44,288
3,664,507
2,040,986
133,698
-
81,404
32,896
133,698
114,300
3,798,205
2,155,286
60,533,203
31,395,912
14(a)
14(f),(g)
127,025,901
1,197,576
(67,690,274)
94,152,977
(103,221)
(62,653,844)
60,533,203
31,395,912
The accompanying notes form part of these financial statements.
2022 Annual Report | 35
CONSOLIDATED STATEMENT
OF CHANGES IN EQUITY
For the year ended 30 June 2022
Issued
Capital
$
CONSOLIDATED
Accumulated
Losses
$
Other
Reserves
$
Total
$
Balance as at 1 July 2020
89,457,105
(59,513,092)
(592,572)
29,351,441
Loss for the year
Total loss for the year
Movement in fair value of
investments recognised in equity
Total comprehensive loss
Ordinary shares issued
Shares issued as consideration
Shares issued on conversion of
performance rights
Recognition of share-based
payments – for services provided by
third parties
Recognition of share-based
payments - directors
Share issue costs
-
-
-
-
5,000,000
28,000
58,731
-
-
(390,859)
(3,140,752)
-
(3,140,752)
(3,140,752)
-
(3,140,752)
-
-
-
-
-
-
-
123,750
(3,140,752)
123,750
123,750
-
-
(42,648)
(3,017,002)
5,000,000
28,000
16,083
37,500
37,500
370,749
370,749
-
(390,859)
Balance as at 1 July 2021
94,152,977
(62,653,844)
(103,221)
31,395,912
Loss for the year
Total loss for the year
Movement in fair value of
investments recognised in equity
Total comprehensive loss
Ordinary shares issued 1
Shares issued as consideration
Shares issued on conversion of
options
Shares issued on conversion of
performance rights
Recognition of share-based
payments – for services provided by
third parties
Recognition of share-based
payments – directors and KMPs
Recognition of share-based
payments - employees
Options issued as consideration for
share issue costs
Share issue costs
-
-
-
-
29,737,800
54,007
5,092,152
118,398
-
-
-
(265,000)
(1,864,433)
(5,036,430)
-
(5,036,430)
(5,036,430)
-
-
(326,250)
(5,036,430)
(326,250)
(5,036,430)
-
-
-
(326,250)
-
-
-
(5,362,680)
29,737,800
54,007
5,092,152
-
-
-
-
-
-
(118,398)
-
265,000
265,000
986,401
986,401
494,044
494,044
-
-
(265,000)
(1,864,433)
Balance as at 30 June 2022
127,025,901
(67,690,274)
1,197,576
60,533,203
1.
$571,000 received 18 July 2022 for shares issued 23 June 2022.
The accompanying notes form part of these financial statements.
2022 Annual Report | 36
CONSOLIDATED STATEMENT
OF CASH FLOWS
For the year ended 30 June 2022
Cash flows from operating activities
Payments to suppliers and employees
Interest received
Net receipts from other entities
Note
CONSOLIDATED
2022
$
2021
$
(4,489,618)
2,251
64,838
(3,116,229)
18,901
119,916
Net cash used in operating activities
6(a)
(4,422,529)
(2,977,412)
Cash flows from investing activities
Expenditure on mining interests
Receipts from Government Grants
Receipts from Research and Development Tax
Incentives
Payment for plant and equipment
(7,562,511)
3,032,901
-
(4,834,973)
331,245
973,307
8(a)
(446,890)
(57,306)
Net cash used in investing activities
(4,976,500)
(3,587,727)
Cash flows from financing activities
Proceeds from issue of shares
Proceeds from conversion of options
Repayment of lease liabilities
Payment of capital raising costs
14(b)
14(b)
29,166,800
5,092,152
(47,117)
(1,864,433)
5,000,000
-
(127,592)
(353,359)
Net cash provided by financing activities
32,347,402
4,519,049
Net increase/(decrease) in cash held
22,948,373
(2,046,090)
Cash at beginning of the financial year
3,495,613
5,541,703
Cash at the end of the financial year
6
26,443,986
3,495,613
The accompanying notes form part of these financial statements.
2022 Annual Report | 37
NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
These consolidated financial statements and notes represent those of Australian Vanadium Limited (the
“Company”) and Controlled Entities (the “Consolidated Entity” or “Group”) for the year ended 30 June 2022.
Australian Vanadium Limited is a company limited by shares incorporated in Australia whose shares are
publicly traded on the Australian Securities Exchange. The Company is domiciled in Western Australia. The
nature of operations and principal activities of the Group are described in the Directors' Report.
1(a) Basis of preparation
The financial statements are general purpose financial statements that have been prepared in accordance with
Australian Accounting Standards, Australian Accounting Interpretations, other authoritative pronouncements
of the Australian Accounting Standards Board (AASB) and the Corporations Act 2001. Compliance with
Australian Accounting Standards ensures the Consolidated Financial Report of the Group complies with
International Financial Reporting Standards (“IFRSs”). The Group is a for-profit entity for financial reporting
purposes under Australian Accounting Standards.
The financial statements have been prepared on an accruals basis and are based on historical costs modified,
where applicable, by the measurement at fair value of selected non-current assets, financial assets and
financial liabilities. Material accounting policies adopted in preparation of these financial statements are
presented below and have been consistently applied unless otherwise stated.
The Group’s financial statements are presented in Australian dollars.
1(b) Financial position
The financial report has been prepared on the going concern basis, which contemplates the continuation of
normal business activity and the realisation of assets and the settlement of liabilities in the normal course of
business.
For the year ended 30 June 2022 the Group incurred a net loss of $5,036,430 (2021: $3,140,752) and had a
net current asset position of $24,044,976 (2021: net current asset position of $2,021,964). Cash and cash
equivalents totalled $26,443,986 as at 30 June 2022 (30 June 2021: $3,495,613). The Group has prepared a
cash flow forecast and has the ability to cut back and reduce discretionary costs and reduce/defer budgeted
exploration expenditure as necessary.
Based on the working capital surplus at 30 June 2022, the cash flow forecast prepared by management, and
the Group’s ability to reduce discretionary costs and defer budgeted exploration costs, the Directors consider
the going concern basis of preparation to be appropriate.
1(c) Statement of compliance
The financial report was authorised for issue on 30 September 2022.
Australian Accounting Standards set out accounting policies that the AASB has concluded would result in a
financial report containing relevant and reliable information about transactions, events and conditions.
Compliance with Australian Accounting Standards ensures that the financial statements and notes also comply
with International Financial Reporting Standards.
2022 Annual Report | 38
NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS (CONTINUED)
1(d) Basis of consolidation
The consolidated financial statements comprise the financial statements of Australian Vanadium Limited
(“Company” or “Parent Entity”) and its subsidiaries as at 30 June each year (“Consolidated” or “Group”).
Subsidiaries are all entities over which the Group has control. The Group controls an entity when it is exposed
to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns
through its power to direct the activities of the entity. Subsidiaries are fully consolidated from the date on which
control is transferred to the Group and cease to be consolidated from the date on which control is transferred
out of the Group. Investments in subsidiaries are accounted for at cost in the individual financial statements of
Australian Vanadium Limited. The financial statements of the subsidiaries are prepared for the same reporting
period as the parent company, using consistent accounting policies. In preparing the consolidated financial
statements, all intercompany balances and transactions, income and expenses and profit and losses resulting
from intra-group transactions have been eliminated in full.
1(e) Other income
Interest income
Interest earned is recognised as it accrues, taking into account the effective yield on the financial asset.
Research and Development Tax Incentive (“R&DTI”)
Income derived from successful R&D claims is recognised on receipt of payment. Research and Development
Tax Incentive (“R&DTI”) are accounted for under AASB 120 Government Grants. R&DTI are recognised on
receipt. R&DTI that relate to the acquisition or construction of an asset are deducted from the carrying amount
of the asset in accordance with AASB 120.
Government grants
Government grants are recognised as revenue when the conditions attached to the grant are satisfied. Grants
that relate to construction of asset are deducted from the carrying amount of the asset in accordance with
AASB 120
1(f) Cash and cash equivalents
Cash comprises cash at bank and in hand. Cash equivalents are short term, highly liquid investments that are
readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.
For the purposes of the statement of cash flows, cash and cash equivalents consist of cash and cash
equivalents as described above, net of outstanding bank overdrafts.
1(g) Trade and other receivables
Trade receivables, which generally have 30-90 day terms, are recognised and carried at original invoice
amount less an allowance for any uncollectible amounts. Impairment losses in respect of debtors is calculated
on an expected credit losses method as required by AASB 9 Financial Instruments.
Income tax
1(h)
Current tax assets and liabilities for the current and prior periods are measured at the amount expected to be
recovered from or paid to the taxation authorities. The tax rates and tax laws used to compute the amount are
those that are enacted or substantively enacted by the reporting date.
Deferred income tax is provided on all temporary differences at the reporting date between the tax bases of
assets and liabilities and their carrying amounts for financial reporting purposes.
2022 Annual Report | 39
NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS (CONTINUED)
Income tax (continued)
1(h)
Deferred income tax liabilities are recognised for all taxable temporary differences except:
when the deferred income tax liability arises from the initial recognition of goodwill or of an asset or liability
in a transaction that is not a business combination and that, at the time of the transaction, affects neither
the accounting profit nor taxable profit or loss; or
when the taxable temporary difference is associated with investments in subsidiaries, associates or
interests in joint ventures, and the timing of the reversal of the temporary difference can be controlled and
it is probable that the temporary difference will not reverse in the foreseeable future.
Deferred income tax assets are recognised for all deductible temporary differences, carry-forward of unused
tax assets and unused tax losses, to the extent that it is probable that taxable profit will be available against
which the deductible temporary differences and the carry-forward of unused tax credits and unused tax losses
can be utilised, except:
when the deferred income tax asset relating to the deductible temporary difference arises from the initial
recognition of an asset or liability in a transaction that is not a business combination and, at the time of
the transaction, affects neither the accounting profit nor taxable profit or loss; or
when the deductible temporary difference is associated with investments in subsidiaries, associates or
interests in joint ventures, in which case a deferred tax asset is only recognised to the extent that it is
probable that the temporary difference will reverse in the foreseeable future and taxable profit will be
available against which the temporary difference can be utilised.
The carrying amount of deferred income tax assets is reviewed at each reporting date and reduced to the
extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred
income tax asset to be utilised.
Unrecognised deferred income tax assets are reassessed at each reporting date and are recognised to the
extent that it has become probable that future taxable profit will allow the deferred tax asset to be recovered.
Deferred income tax assets and liabilities are measured at the tax rates that are expected to apply to the year
when the asset is realised or the liability is settled, based on tax rates (and tax laws) that have been enacted
or substantively enacted at the reporting date.
Income taxes relating to items recognised directly in equity are recognised in equity and not in profit or loss.
Deferred tax assets and deferred tax liabilities are offset only if a legally enforceable right exists to set off
current tax assets against current tax liabilities and the deferred tax assets and liabilities relate to the same
taxable entity and the same taxation authority. The amount of benefits brought to account or which may be
realised in the future is based on the assumption that no adverse change will occur in income legislation and
the anticipation that the Group will derive sufficient future assessable income to enable the benefit to be
realised and comply with the conditions of deductibility imposed by the law.
Revenues, expenses and assets are recognised net of the amount of GST except:
when the GST incurred on a purchase of goods and services is not recoverable from the taxation authority,
in which case the GST is recognised as part of the cost of acquisition of the asset or as part of the expense
item as applicable; and
receivables and payables, which are stated with the amount of GST included.
The net amount of GST recoverable from, or payable to, the taxation authority is included as part of receivables
or payables in the statement of financial position. Cash flows are included in the statement of cash flows on a
gross basis and the GST component of cash flows arising from investing and financing activities, which is
recoverable from, or payable to, the taxation authority are classified as operating cash flows.
2022 Annual Report | 40
NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS (CONTINUED)
1(i) Other taxes
Commitments and contingencies are disclosed net of the amount of GST recoverable from, or payable to, the
taxation authority.
1(j) Financial instruments
Initial recognition and measurement
Financial assets and financial liabilities are recognised when the Company becomes a party to the contractual
provisions to the instrument. For financial assets, this is the date that the Company commits itself to either the
purchase or sale of the asset (i.e. trade date accounting is adopted). Financial instruments (except for trade
receivables) are initially measured at fair value plus transaction costs, except where the instrument is classified
“at fair value through profit or loss”, in which case transaction costs are expensed to profit or loss immediately.
Where available, quoted prices in an active market are used to determine fair value. In other circumstances,
valuation techniques are adopted. Trade receivables are initially measured at the transaction price if the trade
receivables do not contain significant financing component or if the practical expedient was applied as specified
in AASB 15.63.
Classification and subsequent measurement (financial liabilities)
Financial liabilities are subsequently measured at:
amortised cost; or
fair value through profit or loss.
A financial liability is measured at fair value through profit or loss if the financial liability is:
a contingent consideration of an acquirer in a business combination to which AASB 3 Business
Combinations (AASB 3) applies;
held for trading; or
initially designated as at fair value through profit or loss.
The Company does not measure any financial liabilities at fair value through profit or loss. All other financial
liabilities are subsequently measured at amortised cost using the effective interest method. The effective
interest method is a method of calculating the amortised cost of a debt instrument and of allocating interest
expense in profit or loss over the relevant period. The effective interest rate is the internal rate of return of the
financial asset or liability. That is, it is the rate that exactly discounts the estimated future cash flows through
the expected life of the instrument to the net carrying amount of initial recognition. A financial liability cannot
be reclassified.
Classification and subsequent measurement (financial assets)
Financial assets are subsequently measured at:
amortised cost;
fair value through other comprehensive income (debt instruments);
fair value through other comprehensive income (equity – no recycling); or
fair value through profit or loss
Based on the two primary criteria, being:
the contractual cash flow characteristics of the financial asset; and
the business model for managing the financial assets.
A financial asset is subsequently measured at amortised cost when it meets the following conditions:
the financial asset is managed solely to collect contractual cash flows; and
it gives rise to cash flows that are solely payments of principal and interest on the principal amount
outstanding on specified dates.
2022 Annual Report | 41
NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS (CONTINUED)
1(j) Financial instruments (continued)
The Group has financial assets that are measured at amortised cost including trade and other receivables and
cash at bank (including term deposits). The Group investment in listed shares (Note 10) is measured at fair
value through other comprehensive income.
De-recognition
Financial liabilities:
A liability is derecognised when it is extinguished (i.e. when the obligation in the contract is discharged,
cancelled or expires). An exchange of an existing financial liability for a new one with substantially modified
terms, or a substantial modification to the terms of a financial liability, is treated as an extinguishment of the
existing liability and recognition of a new financial liability. The difference between the carrying amount of the
financial liability derecognised and the consideration paid and payable, including any non-cash assets
transferred or liabilities assumed, is recognised in the Statement of Profit or Loss and Other Comprehensive
Income.
Financial assets:
A financial asset is derecognised when the holder’s contractual rights to its cash flows expires, or the asset is
transferred in such a way that all the risks and rewards of ownership are substantially transferred.
All the following criteria need to be satisfied for de-recognition of a financial asset:
the right to receive cash flows from the asset has expired or been transferred;
all risk and rewards of ownership of the asset have been substantially transferred; and
the association no longer controls the asset (i.e. it has no practical ability to make unilateral decisions
to sell the asset to a third party).
Impairment
The Group recognises a loss allowance for expected credit losses on financial assets that are measured at
amortised cost or fair value through other comprehensive income. Expected credit losses are the probability-
weighted estimate of credit losses over the expected life of a financial instrument. A credit loss is the difference
between all contractual cash flows that are due, and all cash flows expected to be received, all discounted at
the original effective interest rate of the financial instrument. The Group uses the simplified approach to
impairment, as applicable under AASB 9 for trade debtors.
1(k) Leases
The Company, as a lessee, will assess whether a contract is, or contains, a lease under AASB 16. A contract
is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of
time in exchange for consideration.
If the contract is assessed to be, or contains, a lease, the Company will recognise a right-of-use asset and a
lease liability at the lease commencement date. The right-of-use asset is initially measured at cost, and
subsequently at cost less any accumulated depreciation and impairment losses and adjusted for certain re-
measurements of the lease liability.
Depreciation is based on the straight-line method from the commencement date to the earlier of the end of the
useful life of the right-of-use asset or the end of the lease term.
The lease liability is initially measured at the present value of the lease payments that are not paid at the
commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily
determined, the Company's incremental borrowing rate. Generally, the Company uses its incremental
borrowing rate as the discount rate.
2022 Annual Report | 42
NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS (CONTINUED)
1(k) Leases (continued)
The lease liability is subsequently increased by the interest cost on the lease liability, offset by lease payments
made. It is remeasured when there is a change in future lease payments arising from a change in an index or
rate, a change in the estimate of the amount expected to be payable under a residual value guarantee, or as
appropriate, changes in the assessment of whether a purchase or extension option is reasonably certain to be
exercised or a termination option is reasonably certain not to be exercised.
Recognition exemption - Short-term leases and leases of low-value assets
The Company has elected not to recognise right-of-use assets and lease liabilities for short-term leases with
a lease term of 12 months or less and leases for low-value assets. The Company will recognise the payments
associated with these leases as an expense on a straight-line basis over the lease term.
1(l) Exploration and evaluation expenditure
Exploration and evaluation expenditures in relation to each separate area of interest are recognised as an
exploration and evaluation asset in the year in which they are incurred where the following conditions are
satisfied:
(i)
(ii)
the rights to tenure of the area of interest are current; and
at least one of the following conditions is also met:
a.
the exploration and evaluation expenditures are expected to be recouped through successful
development and exploitation of the area of interest, or alternatively, by its sale; or
the exploration and evaluation activities in the area have not, at the reporting date, reached a
stage which permits a reasonable assessment of the existence, or otherwise, of economically
recoverable reserves and active and significant operations in, or relation to, the area of interest
are continuing.
b.
Exploration and evaluation assets are initially measured at cost and include acquisition of rights to explore,
studies, exploratory drilling, trenching and sampling and associated activities and an allocation of depreciation
and amortisation of assets used in exploration and evaluation activities. General and administrative costs are
only included in the measurement of exploration and evaluation costs where they are related directly to
operational activities in a particular area of interest.
Exploration and evaluation assets are assessed for impairment when facts and circumstances suggest that
the carrying amount of an exploration and evaluation asset may exceed its recoverable amount. The
recoverable amount of the exploration and evaluation asset (for the cash generating unit(s) to which it has
been allocated being no larger than the relevant area of interest) is estimated to determine the extent of the
impairment loss (if any). Where an impairment loss subsequently reverses, the carrying amount of the asset
is increased to the revised estimate of its recoverable amount, but only to the extent that the increased carrying
amount does not exceed the carrying amount that would have been determined had no impairment loss been
recognised for the asset in previous years.
Where a decision has been made to proceed with development in respect of a particular area of interest, the
relevant exploration and evaluation asset is tested for impairment and the balance is then reclassified to
development.
2022 Annual Report | 43
NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS (CONTINUED)
Impairment of assets
1(m)
The Group assesses at each reporting date whether there is an indication that an asset may be impaired. If
any such indication exists, or when annual impairment testing for an asset is required, the Group makes an
estimate of the asset’s recoverable amount. An asset’s recoverable amount is the higher of its fair value less
costs to sell and its value in use and is determined for an individual asset, unless the asset does not generate
cash inflows that are largely independent of those from other assets or groups of assets and the asset’s value
in use cannot be estimated to be close to its fair value. In such cases the asset is tested for impairment as part
of the cash-generating unit to which it belongs. When the carrying amount of an asset or cash-generating unit
exceeds its recoverable amount, the asset or cash-generating unit is considered impaired and is written down
to its recoverable amount.
In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-
tax discount rate that reflects current market assessments of the time value of money and the risks specific to
the asset. Impairment losses relating to continuing operations are recognised in those expense categories
consistent with the function of the impaired asset unless the asset is carried at a revalued amount (in which
case the impairment loss is treated as a revaluation decrease).
An assessment is also made at each reporting date as to whether there is any indication that previously
recognised impairment losses may no longer exist or may have decreased. If such indication exists, the
recoverable amount is estimated. A previously recognised impairment loss is reversed only if there has been
a change in the estimates used to determine the asset’s recoverable amount since the last impairment loss
was recognised. If that is the case the carrying amount of the asset is increased to its recoverable amount.
That increased amount cannot exceed the carrying amount that would have been determined, net of
depreciation, had no impairment loss been recognised for the asset in prior years. Such reversal is recognised
in profit or loss unless the asset is carried at a revalued amount, in which case the reversal is treated as a
revaluation increase. After such a reversal, the depreciation charge is adjusted in future periods to allocate the
asset’s revised carrying amount, less any residual value, on a systematic basis over its remaining useful life.
1(n) Trade and other payables
Trade payables and other payables are carried at amortised costs and represent liabilities for goods and
services provided to the Group prior to the end of the financial year that are unpaid and arise when the Group
becomes obliged to make future payments in respect of the purchase of these goods and services.
1(o) Share-based payment transactions
The Group may provide benefits to employees (including senior executives) of the Group in the form of share-
based payments, whereby employees render services in exchange for shares or rights over shares (equity-
settled transactions).
When provided, the cost of these equity-settled transactions with employees is measured by reference to the
fair value of the equity instruments at the date at which they are granted. The fair value is determined by an
external valuer using a Black-Scholes model or a Hoadley trinomial barrier option model, as appropriate.
In valuing equity-settled transactions, no account is taken of any performance conditions, other than conditions
linked to the price of the shares of Australian Vanadium Limited (market conditions) if applicable.
The cost of equity-settled transactions is recognised, together with a corresponding increase in equity, over
the period in which the performance and/or service conditions are fulfilled, ending on the date on which the
relevant employees become fully entitled to the award (the vesting period).
2022 Annual Report | 44
NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS (CONTINUED)
1(o) Share-based payment transactions (continued)
The cumulative expense recognised for equity-settled transactions at each reporting date until vesting date
reflects:
(i)
(ii)
the extent to which the vesting period has expired, and
the Group’s best estimate of the number of equity instruments that will ultimately vest.
No adjustment is made for the likelihood of market performance conditions being met as the effect of these
conditions is included in the determination of fair value at grant date. The amount charged or credited to the
statement of profit or loss and other comprehensive income for a period represents the movement in
cumulative expense recognised as at the beginning and end of that period.
No expense is recognised for awards that do not ultimately vest, except for awards where vesting is only
conditional upon a market condition.
If the terms of an equity-settled award are modified, as a minimum an expense is recognised as if the terms
had not been modified. In addition, an expense is recognised for any modification that increases the total fair
value of the share-based payment arrangement, or is otherwise beneficial to the employee, as measured at
the date of modification.
If an equity-settled award is cancelled, it is treated as if it had vested on the date of cancellation, and any
expense not yet recognised for the award is recognised immediately. However, if a new award is substituted
for the cancelled award and designated as a replacement award on the date that it is granted, the cancelled
and new award are treated as if they were a modification of the original award, as described in the previous
paragraph.
The dilutive effect, if any, of outstanding options is reflected as additional share dilution in the computation of
earnings per share.
Issued capital
1(p)
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares or
options are shown in equity as a deduction, net of tax, from the proceeds.
1(q) Segment reporting
Operating segments are reported in a manner consistent with the internal reporting provided to the chief
operating decision maker. The chief operating decision maker, who is responsible for allocating resources and
assessing performance of the operating segments, has been identified as the Board of Directors of the Group.
The Group operates in two segments, being mineral exploration within Australia and the sale of VRFB systems.
1(r) Earnings per share
Basic earnings per share is calculated as net profit attributable to members of the parent, adjusted to exclude
any costs of servicing equity (other than dividends) and preference share dividends, divided by the weighted
average number of ordinary shares, adjusted for any bonus element.
Diluted earnings per share is calculated as net profit attributable to members of the parent, adjusted for:
costs of servicing equity (other than dividends) and preference share dividends;
the after-tax effect of dividends and interest associated with dilutive potential ordinary shares that have
been recognised as expenses; and
other non-discretionary changes in revenues or expenses during the period that would result from the
dilution of potential ordinary shares, divided by the weighted average number of ordinary shares and
dilutive potential ordinary shares, adjusted for any bonus element.
2022 Annual Report | 45
NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS (CONTINUED)
Investments in associates
1(s)
An associate is an entity over which the Consolidated Entity has significant influence. Significant influence is
the power to participate in the financial and operating policy decisions of the investee but is not control or joint
control over those policies.
Investments in associates are accounted for in the parent entity using the cost method and in the Consolidated
Entity using the equity method of accounting. Under the equity method, the investment in an associate is
initially recorded at cost. The carrying amount of the investment is adjusted to recognise changes in the
Consolidated Entity's share of net assets of the associate since the acquisition date. The Consolidated Entity’s
share of post-acquisition profits or losses is recognised in the statement of profit or loss and its share of post-
acquisition movements in other comprehensive income is presented as part of the Consolidated Entity's other
comprehensive income.
Unrealised gains or transactions between the Group and its associates are eliminated to the extent of the
Group’s interests in the associates. Unrealised losses are also eliminated unless the transaction provides
evidence of an impairment of the asset transferred. Accounting policies of associates have been changed
where necessary to ensure consistency with the policies adopted by the Group.
1(t) Plant and equipment
Plant and equipment is stated at cost less accumulated depreciation and any accumulated impairment losses.
Depreciation is calculated on a straight-line basis over the estimated useful life of the assets as follows:
Plant and equipment
Motor vehicles
5 to 10 years
8 years
The assets’ residual values, useful lives and amortisation methods are reviewed, and adjusted if appropriate,
at each financial year end.
Impairment
(i)
The carrying values of property, plant and equipment are reviewed for impairment at each reporting date, with
recoverable amount being estimated when events or changes in circumstances indicate that the carrying value
may be impaired.
The recoverable amount of plant and equipment is the higher of fair value less costs to sell and value in use.
In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-
tax discount rate that reflects current market assessments of the time value of money and the risks specific to
the asset.
For an asset that does not generate largely independent cash inflows, recoverable amount is determined for
the cash-generating unit to which the asset belongs, unless the asset’s value in use can be estimated to be
close to its fair value.
An impairment exists when the carrying value of an asset or cash-generating units exceeds its estimated
recoverable amount. The asset or cash-generating unit is then written down to its recoverable amount.
Impairment losses are recognised in the statement of profit or loss and other comprehensive income.
Derecognition and disposal
(ii)
An item of plant and equipment is derecognised upon disposal or when no further future economic benefits
are expected from its use or disposal.
2022 Annual Report | 46
NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS (CONTINUED)
1(t) Plant and equipment (continued)
Any gain or loss arising on derecognition of the asset (calculated as the difference between the net disposal
proceeds and the carrying amount of the asset) is included in the statement of profit or loss and other
comprehensive income in the year the asset is derecognised.
1(u) Assets held for sale
Non-current assets, or disposal groups comprising assets and liabilities, are classified as held-for-sale if it is
highly probable that they will be recovered primarily through sale rather than through continuing use.
Such assets, or disposal groups, are generally measured at the lower of their carrying amount and fair value
less costs of disposal. Any impairment loss on a disposal group is allocated to the assets and liabilities on a
pro rata basis, except that no loss is allocated to inventories, financial assets, deferred tax assets, employee
benefit assets which continue to be measured in accordance with the Group’s other accounting policies.
Impairment losses on initial classification as held-for-sale and subsequent gains and losses on re-
measurement are recognised in profit or loss.
Once classified as held-for-sale, intangible assets and property, plant and equipment are no longer amortised
or depreciated, and any equity-accounted investee is no longer equity accounted.
1(v) Adoption of new and revised standards
The Company has adopted all of the new and revised Standards and Interpretations issued by the Australian
Accounting Standards Board (AASB) that are relevant to its operations and effective for an accounting period
that begins on or after 1 July 2021. The Directors have determined that there is no material impact of the new
and revised Standards and Interpretations on the Company and, therefore, no material change is necessary
to Company accounting policies.
1(w) New standards, interpretation and amendments issued but not yet effective
The Directors have reviewed all Standards and Interpretations on issue but not yet adopted for the year ended
30 June 2022. As a result of this review the Directors have determined that there is no material impact of the
Standards and Interpretations on issue but not yet adopted on the Group and, therefore, no change is
necessary to Group accounting policies.
1(x) Significant accounting estimates and judgments
Significant accounting judgments
In the process of applying the Group’s accounting policies, management has made the following judgments,
apart from those involving estimations, which have the most significant effect on the amounts recognised in
the financial statements.
Exploration and evaluation assets
The Group’s accounting policy for exploration and evaluation expenditure is set out at Note 1(l). The application
of this policy necessarily requires management to make certain estimates and assumptions as to future events
and circumstances. Any such estimates and assumptions may change as new information becomes available.
If, after having capitalised expenditure under the policy, it is concluded that the expenditures are unlikely to be
recovered by future exploitation or sale, then the relevant capitalised amount will be written off to the Statement
Profit or Loss and Other Comprehensive Income.
Significant accounting estimates and assumptions
The carrying amounts of certain assets and liabilities are often determined based on estimates and
assumptions of future events. The key estimates and assumptions that have a significant risk of causing a
material adjustment to the carrying amounts of certain assets and liabilities within the next annual reporting
period are:
2022 Annual Report | 47
NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS (CONTINUED)
1(x) Significant accounting estimates and judgments (continued)
Impairment of assets
(i)
In determining the recoverable amounts of assets, in the absence of quoted market prices, estimations are
made regarding the present value of future cash flows using asset-specific discount rates and the recoverable
amount of the asset is determined. Value-in-use calculations performed in assessing recoverable amounts
incorporate a number of key estimates.
Deferred tax
(ii)
The recognition of deferred tax assets is based upon whether it is more likely than not that sufficient and
suitable taxable profits will be available in the future, against which the reversal of temporary differences can
be deducted. Recognition, therefore, involves judgement regarding the future financial performance of the
particular legal entity or tax group in which the deferred tax asset has been recognised.
(iii) Share-based payment transactions
The fair value of share-based payments is discussed in Note 14(g). The fair values of options are determined
using Option Pricing Models that take into account the exercise price, the term of the option, the impact of
dilution, the share price at valuation date and expected price volatility of the underlying share, the expected
dividend yield and the risk-free interest rate for the term of the option. Judgement has been exercised on the
probability and timing of achieving milestones related to the options.
2022 Annual Report | 48
NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS (CONTINUED)
2. REVENUE AND EXPENSES
2(a)
Income
Battery revenue
Cost of sales
CONSOLIDATED
2022
$
(34,329)
26,433
(7,896)
2021
$
34,329
(26,433)
7,896
Battery sales recognised in the year end 30 June 2021 have been reversed in the current period.
Other income
Interest received
Administrative services and other income
2(b) Finance costs
Interest paid
Interest on leases
2(c) Employee benefits expense
Salaries and wages
Superannuation
Payroll tax
Recruitment expenses
2(d) Other expenses
Stock exchange and registry fees
Property and office facility expenses
Legal fees
Audit fees
Accounting and consulting fees
Travel and accommodation
Other corporate and administrative expenses
2,251
88,421
90,672
-
9,077
9,077
902,475
218,841
106,855
2,831
1,231,002
227,776
127,765
165,150
38,950
453,826
70,417
874,102
1,957,986
23,508
122,525
146,033
987
21,553
22,540
693,343
142,344
74,734
32,577
942,998
100,285
41,453
89,565
30,000
109,025
37,060
504,608
911,996
2022 Annual Report | 49
NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS (CONTINUED)
INCOME TAX
Income tax expense
3.
3(a)
Major components of income tax expense for the years ended 30 June 2022 and 30 June 2021 are as follows:
Income statement
Current income
Current income tax charge (benefit)
Current income tax not recognised
Research and development concession
CONSOLIDATED
2022
$
2021
$
(2,846,503)
2,846,503
-
(2,405,027)
2,405,027
-
Deferred income tax
Relating to origination and reversal of temporary differences
Deferred tax benefit not recognised
Income tax expense (benefit) reported in income statement
705,649
(705,649)
-
823,194
(823,194)
-
A reconciliation of income tax expense (benefit) applicable to accounting profit before income tax at the
statutory income tax rate to income tax expense at the company’s effective income tax rate for the years ended
30 June 2022 and 30 June 2021 is as follows:
Accounting profit (loss) before tax from continuing operations
Accounting profit (loss) before income tax
At the statutory income rate of 25% (2021: 26%)
Add:
Non-deductible expenses
Temporary differences and losses not recognised
Less:
Non-assessable income
R&D tax offset
At effective income tax rate of 0% (2021: 0%)
Income tax expense reported in income statement
Total income tax expense
CONSOLIDATED
2022
$
(5,036,430)
(5,036,430)
(1,259,108)
2021
$
(3,140,752)
(3,140,752)
(816,596)
373,313
885,795
106,811
982,995
-
-
-
-
-
(20,150)
(253,060)
-
-
-
2022 Annual Report | 50
NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS (CONTINUED)
Deferred tax assets
3(b)
Deferred tax assets/(liabilities) have not been recognised in respect of the following items:
Liabilities:
Receivables
Property, plant and equipment
Prepaid expenditure
Capitalised exploration expenditure
Assets:
Investments
Right of Use Assets
Trade and other payables
Provisions
Business related costs
Tax losses
Net deferred tax
CONSOLIDATED
2022
$
-
(89,977)
(46,217)
(8,693,146)
2021
$
-
(13,536)
(27,629)
(7,185,807)
(8,829,340)
(7,226,972)
282,188
(1,153)
19,078
73,554
562,461
25,983,090
26,919,218
18,089,878
194,025
(1,595)
15,509
53,510
254,529
24,093,325
24,609,303
17,382,331
The benefit of these losses has not been brought to account at 30 June 2022 because the Directors do not
believe it is appropriate to regard realisation of the deferred tax asset as being probable at this point in time or
that there are sufficient deferred tax liabilities to offset these losses. These tax losses are also subject to final
determination by the Taxation authorities when the Company derives taxable income. The benefits will only
be realised if:
a. The Company derives future assessable income of a nature and of an amount sufficient to enable the
benefit of the deduction for the losses to be realised;
b. The Company continues to comply with the conditions for the deductibility imposed by law; and
c. No changes in the tax legislation adversely affect the Company in realising the benefit of the losses.
4. AUDITORS’ REMUNERATION
Amounts paid or due and payable to Armada Audit & Assurance Pty Ltd for:
Audit and review
CONSOLIDATED
2022
$
38,950
38,950
2021
$
30,000
30,000
2022 Annual Report | 51
NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS (CONTINUED)
5. EARNINGS PER SHARE
Basic earnings per share
The earnings and weighted average number of ordinary
shares used in the calculated of basic earnings per share
is as follows:
Net loss for the year
Weighted average number of ordinary shares used in the
calculation of basic EPS
6.
CASH AND CASH EQUIVALENTS
Cash at bank
Short-term deposits
CONSOLIDATED
2022
$
Cents
(0.15)
2021
$
Cents
(0.11)
(5,036,430)
3,384,156,412
(3,140,752)
2,837,011,273
CONSOLIDATED
2022
$
24,423,100
2,020,886
26,443,986
2021
$
972,147
2,523,466
3,495,613
Cash at bank earns interest at floating rates based on daily deposit rates. Cash and cash equivalents for
the purpose of the statement of cash flows are comprised of cash at bank and short-term deposits.
(5,036,430)
6(a) Reconciliation of loss for the year to net cash flows used in operating activities
Loss for the year
Non-cash flows in profit/loss
Interest Expense on Leases
Depreciation and amortisation
Exploration and evaluation write off
Share based payments
Changes in operating assets and liabilities
(Increase)/decrease in trade and other receivables
Increase/(decrease) in trade and other payables
Increase/(decrease) in provisions
9,077
111,916
133,780
1,480,445
(698,161)
(465,099)
41,943
21,553
132,714
648,663
400,832
(342,141)
(700,629)
2,348
(3,140,752)
Net cash flows from operating activities
(4,422,529)
(2,977,412)
6(b)
In the year the following non-cash financing and investing activities occurred:
Non-cash financing and investing activities
Options issued as consideration for share issue costs
CONSOLIDATED
2022
$
265,000
265,000
2021
$
37,500
37,500
2022 Annual Report | 52
NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS (CONTINUED)
7. TRADE AND OTHER RECEIVABLES
Current
GST receivable
Other receivables
Trade debtors
Less: provision for doubtful debts
CONSOLIDATED
2022
$
119,955
855,315
306,108
(15,881)
1,265,497
2021
$
278,296
213,197
91,725
(15,881)
567,337
Other receivables are non-interest bearing and generally repayable within 12 months. Due to the short-term
nature of these receivables, their carrying value is assumed to approximate their fair value.
8.
PLANT AND EQUIPMENT
Plant and equipment
At cost
Accumulated depreciation
Motor vehicles
At cost
Accumulated depreciation
Assets under construction
At cost
Total
At cost
Accumulated depreciation
CONSOLIDATED
2022
$
2021
$
679,229
(281,549)
447,326
(227,082)
397,680
220,244
144,018
(38,124)
105,894
116,569
116,569
60,600
(42,069)
18,531
-
-
939,816
(319,673)
507,926
(269,151)
620,143
238,775
8(a) Movements in Carrying Amounts
Movements in the carrying amounts for each class of plant and equipment during the financial
year:
Balance at 1 July 2020
Additions
Depreciation expense
Plant &
equipment
212,730
57,306
(49,792)
Balance at 30 June 2021
Additions
Depreciation expense
220,244
231,903
(54,467)
Motor
vehicles
26,133
-
(7,602)
18,531
98,418
(11,055)
Assets under
construction
-
-
-
-
116,569
-
Balance at 30 June 2022
397,680
105,894
116,569
2022 Annual Report | 53
Total
238,863
57,306
(57,394)
238,775
446,890
(65,522)
620,143
NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS (CONTINUED)
9.
EXPLORATION AND EVALUATION EXPENDITURE
Expenditure brought forward
Receipts for exploration and mining activities
Expenditure incurred during the year
Amounts expensed during the period
CONSOLIDATED
2022
$
28,502,403
(257,153)
7,515,886
(133,780)
2021
$
23,479,022
(1,304,552)
6,976,596
(648,663)
Expenditure carried forward
35,627,356
28,502,403
The expenditure above relates principally to the exploration and evaluation phase. The ultimate recoupment
of this expenditure is dependent upon the successful development and commercial exploration, or alternatively,
sale of the respective areas of interest, at amounts at least equal to the carrying value. The directors have
assessed the carrying value of the projects for impairment triggers under AASB 6 Exploration for and
Evaluation of Mineral Resources considering all available information and based on their assessment no
impairment triggers were noted.
Receipts are for Government grants related to exploration and evaluation expenditure. These costs are
deducted from the cost of the asset in accordance with AASB 120 Government Grants.
As announced 11 May 2022, the Company have entered into an option agreement with Mining Green Metals
(“MGM”) for the sale of the Coates and Nowthanna projects. Under the terms of the agreement, MGM will pay
cash and MGM shares comprised of the following:
-
-
-
6,500,000 fully paid ordinary shares of MGM.
0.75% net smelter return royalty from the value of the minerals mined (Coates Project).
$190,000 cash payment.
The tenements included in the Option are:
- E70/4924-I (Coates Project),
- E70/5588 (Coates Project),
- ELA 70/5589 upon grant (Coates Project), and
- M51/771 (Nowthanna Hill Project).
The tenements included in the Option Agreement have been classified as an exploration and evaluation asset
due to the conditional nature of the sale.
Completion of the sale remains subject to and conditional on:
- MGM advising AVL that it has completed its due diligence investigations on the tenements,
- MGM having received listing approval from ASX for its shares to be admitted to the official list, and
- AVL either obtaining approval from its shareholders as is necessary to proceed or ASX providing
written advice to AVL that such shareholder approval is not required.
The exploration and evaluation expenditure carried forward relates to:
The Australian Vanadium Project
Coates Project
Nowthanna Project
Expenditure carried forward
34,918,513
475,305
233,538
35,627,356
2022 Annual Report | 54
NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS (CONTINUED)
10. FINANCIAL ASSETS
Purchase price of investment in Bryah Resources
Fair value movement
Investments at fair value
CONSOLIDATED
2022
$
1,410,000
(1,072,500)
337,500
2021
$
1,410,000
(746,250)
663,750
Name
Principal
Activities
Country of
Incorporation
Shares
Ownership
Interest
Bryah
Resources
Limited 1
Mineral
Exploration
Australia
Listed:
Ordinary
2022
%
4.97
2021
%
5.71
Carrying Amount
of Investment
2022
$
337,500
2021
$
663,750
1
Investments in Bryah Resources Limited has been classified as an equity instrument at FVTOCI in accordance with AASB 9 Financial
Instruments with the movements in the investment presented in Other Comprehensive Income. The fair value movement of $326,250
has been recognised in Equity in accordance with AASB 9 Financial Instruments.
11. TRADE AND OTHER PAYABLES
Current
Trade payables and accruals
Mining Rehabilitation Fund
Payroll tax
Fringe benefits tax
CONSOLIDATED
2022
$
861,926
22,632
7,000
8,221
899,779
2021
$
1,873,230
-
9,943
5,001
1,888,174
Trade creditors are non-interest bearing and are normally settled on 30-day terms. Due to the short-term nature
of trade payables and accruals, their carrying value is assumed to approximate their fair value.
12. PROVISIONS
Current
Employee entitlements – annual leave
Non-current
Employee entitlements – long service leave
CONSOLIDATED
2022
$
150,467
150,467
133,698
133,698
2021
$
108,524
108,524
81,404
81,404
2022 Annual Report | 55
NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS (CONTINUED)
13. GRANT LIABILITY
During the year the Company received $2,766,148 in grant funding from the Australian Government under the
Manufacturing Translation Stream – Resources Technology and Critical Minerals Processing Priority scheme.
(Total funding to be paid to the Company under the scheme is $3,688,197.) The purpose of the grant is to co-
fund:
-
-
-
piloting of an ultra-high purity vanadium pentoxide manufacturing circuit,
design and construction of a full-scale vanadium electrolyte manufacturing plant, and
design and development of a residential Vanadium Redox Flow Battery and Standalone Power
System.
As at 30 June 2022, $184,201 has been deducted from the funds received for the cost of constructing the
asset. An amount of $2,581,947 is recognised as a liability at 30 June 2022.
2022 Annual Report | 56
NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS (CONTINUED)
14. ISSUED CAPITAL AND RESERVES
14(a)
Issued and paid up capital
Ordinary shares – fully paid
Ordinary shares – partly paid
Share issue costs written off against issued capital
14(b) Movement in ordinary shares on Issue
CONSOLIDATED
2022
$
131,512,774
6,800
(4,493,673)
2021
$
96,509,217
8,000
(2,364,240)
127,025,901
94,152,977
2022
Number
2022
$
2021
Number
2021
$
2,931,158,814
773,531,915
96,509,217 2,566,322,832
357,142,857
28,700,000
91,422,486
5,000,000
12,148,824
571,000
-
-
583,625
14,007
1,120,000
14,000
1,666,667
40,000
1,000,000
14,000
-
-
1,000,000
13,000
6,080,012
118,398
4,573,125
45,731
203,686,075
5,092,152
12,000,000
468,000
-
-
-
-
3,940,855,932
131,512,774 2,931,158,814
96,509,217
(i) Ordinary shares – fully paid
Balance at beginning of year
Issue of ordinary shares via
placements *
Issue of ordinary shares
via Share Purchase Plan 1
Issue of ordinary shares
as consideration for option fee for
land acquisition
Issue of ordinary shares
as consideration for corporate and
consulting services received from
suppliers
Issue of ordinary shares on
conversion of service rights
Issue of shares on conversion of
performance rights
Issue or ordinary shares on
conversion of options
Partly paid shares fully paid *
Balance at end of year
(ii) Ordinary shares – partly paid
($0.0389 unpaid)
Balance at beginning of year
Partly paid shares fully paid *
80,000,000
(12,000,000)
8,000
(1,200)
80,000,000
-
8,000
-
8,000
Balance at end of year
68,000,000
6,800
80,000,000
Total issued shares
4,008,855,932
131,519,574 3,011,158,814
96,517,217
1.
*
$571,000 received 18 July 2022 for shares issued 23 June 2022.
Total cash from share capital was $29,166,800.
14(c) Terms and Conditions of Issued Capital
Ordinary shares have the right to receive dividends as declared and, in the event of winding up the Company,
to participate in proceeds from the sale of all surplus assets in proportion to the number of and amounts paid
up on shares held.
Fully paid ordinary shares entitle their holder to one vote, either in person or by proxy, at a meeting of the
Company. Options and partly paid ordinary shares do not entitle their holder to any voting rights.
2022 Annual Report | 57
NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS (CONTINUED)
14(d) Share Options
At 30 June 2022, the following options over unissued ordinary shares were outstanding:
No. shares under
option
Class of shares under
option
Exercise price
($)
Expiry date of options
355,385,353
Ordinary
0.025
18 December 2022
14(e) Performance Rights
At 30 June 2022, the following performance rights were outstanding:
Opening performance rights
Issue of performance rights to employees 1,2
Conversion of performance rights issued to employees
Cancellation of performance rights issued to directors
Issue of performance rights to directors
CONSOLIDATED
2022
No.
124,000,000
35,716,525
(6,080,012)
-
-
2021
No.
64,573,125
-
(4,573,125)
(60,000,000)
124,000,000
Closing performance rights
153,636,513
124,000,000
1
2
35,116,525 performance rights were issued to employees during the period (expiry 29 July 2026). Refer to note 14(g). The rights fully
vested during the period.
600,000 performance rights were issued to employees during the period (expiry 10 April 2027).
14(f) Fair Value Reserve
The fair value reserve records movements in financial assets classified as fair value through Other
Comprehensive Income in accordance with AASB 9 Financial Instruments.
Balance at the beginning of the year
Change in fair value of investments
Balance at the end of the year
CONSOLIDATED
2022
$
(746,250)
(326,250)
(1,072,500)
2021
$
(870,000)
123,750
(746,250)
2022 Annual Report | 58
NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS (CONTINUED)
14(g) Share-Based Payment Reserve
The share-based payments reserve is used to recognise the fair value of options or performance rights issued.
Balance at the beginning of the year
Fair value of options recognised in share issue costs1
Fair value of performance rights converted to shares
Fair value of performance rights issued to directors and Key
Management Personnel 2,3
Fair value of performance rights issued to employees 3
Balance at the end of the year
CONSOLIDATED
2022
$
643,029
265,000
(118,398)
986,401
494,044
2,270,076
2021
$
277,428
37,500
(58,731)
373,832
13,000
643,029
The share-based payment reserve records the cumulative value of services received for the issue of share
options and/or performance rights. When the securities are exercised the amount in the share-based payment
reserve is transferred to share capital.
A total of $1,480,445 was expensed as share-based payments for the period ended 30 June 2022 (2021:
$400,832).
Share-Based Payments
Shares issued in consideration for services rendered
Performance rights issued fully vested to Directors during the
period 2
Performance rights issued to Key Management Personnel fully
vested during the period 3
Performance rights issued to employees and third parties fully
vested during the period 3
Share based payments expensed recognised in profit or loss
CONSOLIDATED
2022
$
2021
$
-
832,051
14,000
370,749
154,350
3,083
494,044
13,000
1,480,445
400,832
1The Company issued 25 million options during the year as part consideration for capital raising fees. The
options issued have been valued using a Black-Scholes model with the following parameters:
Option exercise price: $0.025
Underlying share price at issue: $0.026
Volatility: 100.08%
Effective interest rate: 0.535%
Expiry date: 18 December 2022
Fair value of option $0.011
The total fair value of the options issued being $265,000.
2022 Annual Report | 59
NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS (CONTINUED)
14(g) Share-Based Payment Reserve (continued)
2 Following shareholder approval at the general meeting held on 25 November 2020, 124,000,000 performance
rights were issued to Directors. The fair value of the performance rights granted were determined using a
binomial options pricing model with the following inputs:
Effective interest rate: 0.335%
Volatility: 107.63%
Expiry date: 2 December 2025
Share price at grant date: $0.013
Exercise price: nil
The performance rights were granted for nil consideration and vested subject to certain market performance
conditions and service conditions being met (refer to Remuneration Report for details). The performance rights
fully vested during the year with an expense of $832,052 recognised in the profit and loss.
3 The Group issued 8,231,250 performance rights issued to Key Management Personnel during the year and
26,885,275 performance rights with market conditions to employees. The fair value of the performance rights
granted were determined using a trinomial options pricing model, as outlined in the below table:
Tranche
Effective
interest
rate
Volatility
Number of
Instruments
Tranche 5
Tranche 6
Tranche 7
Tranche 8
Tranche 9
Tranche 10
Tranche 11
Tranche 12
Tranche 13
0.56% 101.81%
0.56% 101.81%
0.56% 101.81%
0.56% 101.81%
0.56% 101.81%
0.56% 101.81%
2.475% 100.88%
2.475% 100.88%
2.475% 100.88%
5,808,262
2,250,000
7,686,087
7,686,088
7,686,088
4,000,000
400,000
100,000
100,000
Share
price at
grant
date
$0.02
$0.02
$0.02
$0.02
$0.02
$0.02
$0.068
$0.068
$0.068
Expiry
date
Fair
value
$0.02
$0.02
$0.0188
$0.0183
$0.0174
$0.0165
29-Jul-26
29-Jul-26
29-Jul-26
29-Jul-26
29-Jul-26
29-Jul-26
10-Apr-27 $0.068
10-Apr-27 $0.0692
10-Apr-27 $0.0688
The vesting conditions relating to the performance rights issued are as follows:
Tranche
Tranche 5
Tranche 6
Tranche 7
Tranche 8
Tranche 9
Vesting Conditions
Continuous employment, as defined in the Plan, from the date of grant of the
performance rights until 31 December 2021.
Completion of a bankable feasibility study on the Australian Vanadium
Project.
The Company achieves a share price of at least $0.025 VWAP over 20
consecutive trading days on which the Company’s shares have actually
traded.
The Company achieves a share price of at least $0.03 VWAP over 20
consecutive trading days on which the Company’s shares have actually
traded.
The Company achieves a share price of at least $0.04 VWAP over 20
consecutive trading days on which the Company’s shares have actually
traded.
Tranche 10 The Company achieves a share price of at least $0.05 VWAP over 20
consecutive trading days on which the Company’s shares have actually
traded.
Tranche 11 Continuous employment, as defined in the Plan, from the grant date of the
Performance Rights until 31 December 2022.
Tranche 12 Share price of at least $0.08 VWAP over 20 consecutive trading days on
which the Company’s shares have actually traded.
Tranche 13 Share price of at least $0.09 VWAP over 20 consecutive trading days on
which the Company’s shares have actually traded.
2022 Annual Report | 60
NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS (CONTINUED)
15. COMMITMENTS
The Group has certain obligations to perform minimum exploration work and to expend minimum amounts of
money on such work on mining tenements. These obligations may be varied from time to time subject to
approval and are expected to be fulfilled in the normal course of the operations of the Group. These
commitments have not been provided for in the accounts.
Mining Tenement Commitments
Minimum expenditure commitment on the tenements is:
Payable no later than 1 year
Payable between 1 year and 5 years
Capital Commitments
E22 – 65kW/300kWh vanadium redox flow battery (30%
deposit paid)
Primero – design and costing for electrolyte plant
Australian Vanadium Project
CONSOLIDATED
2022
$
2021
$
622,700
3,378,500
4,001,200
235,723
180,904
1,433,621
1,850,248
622,634
2,675,536
3,298,170
-
-
-
16. CONTINGENT ASSETS AND LIABILITIES
It is possible that native title, as defined in the Native Title Act 1993, might exist over land in which the Group
has an interest. It is impossible at this stage to quantify the impact (if any) that the existence of native title may
have on the operations of the Group. However, at the date of this report, the Directors are aware that
applications for native title claims have been accepted by the Native Title Tribunal over Group tenements.
As at the date of this report a contingent asset existed in relation to an option agreement between the Company
and Mining Green Metals Limited (“MGM”) for the sale of tenements.
Under the terms of the agreement, MGM will pay cash and MGM shares comprised of the following:
6,500,000 fully paid ordinary shares of MGM.
-
- A 0.75% net smelter return royalty from the value of the minerals mined (Coates Project).
-
$190,000 cash payment.
Refer to Note 9 for details of the agreement.
17. SEGMENT INFORMATION
AASB 8 requires a ‘management approach’ under which segment information is presented on the same basis
as that used for internal reporting purposes. The Board as a whole will regularly review the identified segments
in order to allocate resources to the segment and to assess its performance.
The Group has identified two operating segments for 2022 being:
Exploration
Consisting of The Australian Vanadium Project and other exploration projects
Energy storage
VSUN Energy Pty Limited’s vanadium redox flow battery marketing and sales activities.
Segment revenues, assets and liabilities are those that are directly attributable to a segment and the relevant
portion that can be allocated to the segment on a reasonable basis. Segment assets include all assets used
by a segment and primarily consist of plant and equipment and project tenements. Segment liabilities consist
primarily of trade and other creditors and employee entitlements.
2022 Annual Report | 61
NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS (CONTINUED)
The following table presents revenue, expenditure and asset information regarding operating segments for the
year ended 30 June 2022.
Sales to external customers
Cost of sales
Gross profit
Other revenue
Total segment revenue
Exploration
Consolidated
$
-
-
-
-
-
Energy
Storage
$
(34,329)
26,433
(7,896)
-
(7,896)
Unallocated
$
-
-
-
90,672
90,672
Total
$
(34,329)
26,433
(7,896)
90,672
82,776
Total segment results
(790,104)
(334,656)
(3,911,670)
(5,036,430)
Total segment assets
35,627,356
448,578
28,255,474
64,331,408
Total segment liabilities
Exploration and evaluation
expenditure
Depreciation and amortisation
Finance costs
Interest income
3,643,284
(133,780)
-
-
-
29,240
-
(29,671)
-
-
125,681
-
(82,245)
(9,077)
2,251
3,798,205
(133,780)
(111,916)
(9,077)
2,251
18. RELATED PARTY TRANSACTIONS
18(a) Subsidiaries
The consolidated financial statements include the financial statements of Australian Vanadium Limited and the
subsidiaries listed in the following table.
Country of
Incorporation
Australian Uranium Pty Ltd
Cabe Resources Ltd
VSUN Energy Pty Ltd
South African Lithium Pty Ltd
Australia
Australia
Australia
South Africa
Equity
2022
%
100
100
100
100
Holding
2021
%
100
100
100
100
Principal Activities
Mineral exploration
Mineral exploration
Energy storage
Mineral exploration
18(b) Director-Related Entities
The Group engaged the following entities during the financial year for the following services on normal
commercial terms:
Streamline Capital Pty Ltd (a company wholly owned by Mr Leslie Ingraham) - expenses totalling
$97,913 (2021: $83,129) paid for rental of storage facility for the year ended 30 June 2022 (amount
owing at 30 June 2022: nil).
2022 Annual Report | 62
NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS (CONTINUED)
19. PARENT ENTITY DISCLOSURES
19(a) Summary Financial Information
Assets
Current assets
Non-current assets
Total assets
Liabilities
Current liabilities
Non-current liabilities
Total Liabilities
Equity
Issued capital
Reserves
Accumulated losses
Total equity
Financial performance
Loss for the year
Other comprehensive income
Total comprehensive loss
PARENT
2022
$
2021
$
27,527,724
36,648,763
3,845,017
29,507,448
64,176,487
33,352,465
3,509,589
133,698
3,643,287
1,883,321
-
1,883,321
127,025,856
1,197,575
(67,690,231)
94,152,933
(103,222)
(62,580,567)
60,533,200
31,469,144
(4,698,925)
(326,250)
(2,944,492)
123,750
(5,025,175)
(2,820,742)
19(b) Guarantees
Australian Vanadium Limited has not entered into any guarantees.
19(c) Other Commitments and Contingencies
Australian Vanadium Limited (parent entity) has exploration commitments as described in Note 15. It has no
contingent liabilities other than those discussed in Note 16.
2022 Annual Report | 63
NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS (CONTINUED)
20. KEY MANAGEMENT PERSONNEL DISCLOSURES
20(a) Compensation of Key Management Personnel
Refer to the remuneration report contained in the Directors’ Report for details of the remuneration paid or
payable to each member of the Group’s key management personnel. Refer to the remuneration report for
performance rights and shares held by the directors and executives of the Company.
Director and executive disclosures
Compensation of key management personnel
Short-term personnel benefits
Post-employment benefits
Other long-term benefits
Share based payments
CONSOLIDATED
2022
$
2021
$
1,098,136
90,256
11,939
986,401
2,186,732
1,066,867
89,940
4,150
373,832
1,534,789
20(b) Loans and Other Transactions with Key Management Personnel
There were no loans to key management personnel or their related entities during the financial year. Other
transactions with key management personnel are described in Note 18(b).
21. SHARE-BASED PAYMENTS
Refer to Note 14 for assumptions used in the valuation of the share-based payments.
22. FINANCIAL RISK MANAGEMENT
The Consolidated Entity manages its exposure to key financial risks in accordance with the Consolidated
Entity’s financial risk management policy. The objective of the policy is to support the delivery of the
Consolidated Entity’s financial targets while protecting future financial security.
Categories of financial instruments:
Financial assets
Cash and cash equivalents
Trade debtors
Investments
Financial liabilities
Trade payables
Lease liability
Grant liability
CONSOLIDATED
2022
$
2021
$
26,443,986
1,265,497
337,500
28,046,983
899,779
32,314
2,581,947
3,514,040
3,495,613
567,337
663,750
4,726,700
1,888,174
77,184
-
1,965,358
The main risks arising from the Consolidated Entity’s financial instruments are interest rate risk, credit risk and
liquidity risk. The Consolidated Entity does not speculate in the trading of derivative instruments. The
Consolidated Entity uses different methods to measure and manage different types of risks to which it is
exposed. These include monitoring levels of exposure to interest rates and assessments of market forecasts
for interest rates. Ageing analysis of and monitoring of receivables are undertaken to manage credit risk,
liquidity risk is monitored through the development of future rolling cash flow forecasts.
2022 Annual Report | 64
NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS (CONTINUED)
The Board reviews and agrees policies for managing each of these risks as summarised below. Primary
responsibility for identification and control of financial risks rests with the Board. The Board reviews and agrees
policies for managing each of the risks identified below, including for interest rate risk, credit allowances and
cash flow forecast projections.
Details of the significant accounting policies and methods adopted, including the criteria for recognition, the
basis of measurement and the basis on which income and expenses are recognised, in respect of each class
of financial asset and financial liability are disclosed in Note 1 to the financial statements.
Interest Rate Risk
22(a)
The Consolidated Entity’s exposure to risks of changes in market interest rates relates primarily to the
Consolidated Entity’s cash balances. The Consolidated Entity constantly analyses its interest rate exposure.
Within this analysis consideration is given to potential renewals of existing positions, alternative financing
positions and the mix of fixed and variable interest rates. As the Consolidated Entity has no interest-bearing
borrowings its exposure to interest rate movements is limited to the amount of interest income it can potentially
earn on surplus cash deposits. The following sensitivity analysis is based on the interest rate risk exposures
in existence at the reporting date.
At the reporting date, the Consolidated Entity had the following financial assets exposed to variable interest
rates that are not designated in cash flow hedges:
Financial assets
Cash and cash equivalents (interest bearing accounts)
CONSOLIDATED
2022
$
26,443,986
26,443,986
2021
$
3,495,613
3,495,613
The following sensitivity analysis is based on the interest rate risk exposures in existence at the reporting date.
At the reporting date, if interest rates had moved as illustrated in the table below, with all other variables held
constant, post-tax profit and equity relating to financial assets of the Consolidated Entity would have been
affected as follows:
Estimates of reasonably possible movements:
Post tax profit – higher/(lower)
+0.5%
-0.5%
Equity – higher/(lower)
+0.5%
-0.5%
CONSOLIDATED
2022
$
2021
$
49,737
(49,737)
49,737
(49,737)
31,506
(31,506)
31,506
(31,506)
22(b) Liquidity Risk
The Consolidated Entity has no significant exposure to liquidity risk as there is effectively no debt. The
Consolidated Entity manages liquidity risk by monitoring immediate and forecast cash requirements and
ensuring adequate cash reserves are maintained.
2022 Annual Report | 65
NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS (CONTINUED)
22(c) Credit Risk
Credit risk arises from the financial assets of the Consolidated Entity, which comprise deposits with banks and
trade and other receivables. The Consolidated Entity’s exposure to credit risk arises from potential default of
the counter party, with the maximum exposure equal to the carrying amount of these instruments. The carrying
amounts of financial assets included in the statement of financial position represents the Consolidated Entity’s
maximum exposure to credit risk in relation to those assets.
The Consolidated Entity does not hold any credit derivatives to offset its credit exposure. The Consolidated
Entity trades only with recognised, creditworthy third parties and as such collateral is not requested nor is it
the Consolidated Entity’s policy to securitise its trade and other receivables. Receivable balances are
monitored on an ongoing basis with the result that the Consolidated Entity does not have a significant exposure
to bad debts.
There are no significant concentrations of credit risk within the Consolidated Entity.
22(d) Capital Management Risk
Management controls the capital of the Consolidated Entity in order to maximise the return to shareholders
and ensure that the Group can fund its operations and continue as a going concern.
Management effectively manages the Group’s capital by assessing the Consolidated Entity’s financial risks
and adjusting its capital structure in response to changes in these risks and in the market. These responses
include the management of expenditure and debt levels and share and option issues.
The Consolidated Entity has no external loan debt facilities other than trade payables. There have been no
changes in the strategy adopted by management to control capital of the Consolidated Entity since the prior
year.
22(e) Commodity Price and Foreign Currency Risk
The Consolidated Entity’s exposure to price and currency risk is minimal given the Consolidated Entity is still
in the exploration phase.
22(f) Fair Value
The methods of estimating fair value are outlined in the relevant notes to the financial statements. All financial
assets and liabilities recognised in the statement of financial position, whether they are carried at cost or fair
value, are recognised at amounts that represent a reasonable approximation of fair values unless otherwise
stated in the applicable notes.
2022 Annual Report | 66
NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS (CONTINUED)
23. EVENTS SUBSEQUENT TO THE REPORTING DATE
On 11 August 2022 the Company issued 4,000,000 shares for the conversion of options (exercisable at $0.025,
expiring 18 December 2022) which raised $100,000.
On 18 August 2022 the Company issued 17,800,000 shares for the conversion of options (exercisable at
$0.025, expiring 18 December 2022) which raised $445,000.
On 25 August 2022 the Company issued 1,306,666 shares for the conversion of options (exercisable at $0.025,
expiring 18 December 2022) which raised $32,667.
Following the exercise of performance rights (expiry 30 July 2026) the Company issued 3,218,875 shares for
nil consideration on 5 September 2022.
On 8 September 2022 the Company issued 400,000 shares for the conversion of options (exercisable at
$0.025, expiring 18 December 2022) which raised $10,000.
On 15 September 2022 the Company issued 6,338,260 shares for the conversion of options (exercisable at
$0.025, expiring 18 December 2022) which raised $158,456.50.
No other matters or circumstances have arisen since the end of the financial year which significantly affected,
or may significantly affect, the operations of the Company, the results of those operations, or the state of affairs
of the Company in subsequent financial years, other than as outlined in the Company’s review of operations
which is contained in this Annual Report.
2022 Annual Report | 67
DIRECTORS’ DECLARATION
The Directors of the Company declare that:
(a)
(b)
(c)
(d)
in the Directors’ opinion there are reasonable grounds to believe that the Company will be able to
pay its debts as and when they become due and payable;
in the Directors’ opinion the attached Financial Statements and Notes thereto are in accordance
with the Corporations Act 2001 (Cth), including compliance with accounting standards and giving a
true and fair view of the financial position and performance of the Consolidated entity;
in the Directors’ opinion, the Financial Statements and Notes thereto are in accordance with
International Financial Reporting Standards issued by the International Accounting Standards
Board as stated in Note 1; and
the Directors have been given the declarations required by s.295A of the Corporations Act 2001
(Cth).
Signed in accordance with a resolution of the Directors made pursuant to s295(5) of the Corporations Act
2001 (Cth).
Cliff Lawrenson
Non-Executive Chairman
Perth
30 September 2022
2022 Annual Report | 68
AUDITOR’S INDEPENDENCE DECLARATION
UNDER SECTION 307C OF THE CORPORATIONS ACT 2001
TO THE DIRECTORS OF
AUSTRALIAN VANADIUM LIMITED
I declare that, to the best of my knowledge and belief, during the audit for the year ended 30 June
2022 there have been:
i)
ii)
No contraventions of the auditor independence requirements as set out in the
Corporations Act 2001 in relation to the audit; and
No contraventions of any applicable code of professional conduct in relation to the
audit.
ARMADA AUDIT & ASSURANCE PTY LTD
Nigel Dias
Director
Perth, 30 September 2022
Independent Auditor’s Report
To the Members of Australian Vanadium Limited
Report on the audit of the financial report
Opinion
We have audited the financial report of Australian Vanadium Limited (‘the Company’) and its subsidiaries
(‘the “Group’) which, comprises the consolidated statement of financial position as at 30 June 2022, the
consolidated statement of profit or loss and other comprehensive income, the consolidated statement of
changes in equity and the consolidated statement of cash flows for the year then ended, and notes to the
consolidated financial statements, including a summary of significant accounting policies, and the directors’
declaration.
In our opinion, the accompanying financial report of Australian Vanadium Limited is in accordance with the
Corporations Act 2001, Including
Giving a true and fair view of the Group’s financial position as at 30 June 2022, and of its financial
performance for the year then ended and;
Complying with Australian Accounting Standards and the Corporations Regulations 2001.
Basis for Opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those
standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Report section
of our report. We are independent of the Group in accordance with the auditor independence requirements
of the Corporations Act 2001 and the Accounting Professional and Ethical Standards Board’s APES 110
Code of Ethics for Professional Accountants (“the Code”) that are relevant to our audit of the financial
report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code.
We confirm that the independence declaration required by the Corporations Act 2001, which has given to
directors of the Company, would be in the same terms if given to the directors as at the time of this auditor’s
report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our opinion.
Key Audit Matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our
audit of the financial report of the current year. These matters were addressed in the context of our audit
of the financial report as a whole, and in forming our opinion thereon, and we do not provide a separated
opinion on these matters.
Exploration and Evaluation Assets - Note 9
At 30 June 2022, the Group’s carrying value of
Exploration and Evaluation Assets was
$35,627,356
The exploration and evaluation assets are
required to be assessed for impairment when
facts and circumstances suggest
the
carrying amount may exceed their recoverable
amounts. Any
then
measured
in accordance with AASB 136
Impairment of Assets.
losses are
impairment
that
This area is a key audit matter as significant
judgement is required in determining whether:
and Evaluation
The
and
capitalised Exploration
Evaluation assets meet the recognition
criteria in terms of AASB 6 Exploration
for
of Mineral
Resources; and
Facts and circumstances suggest that
the carrying amount of an exploration
and evaluation asset may exceed its
recoverable amount in accordance with
AASB 6.
Our Procedures, amongst others, included:
Agreeing a sample of capitalised exploration and
evaluation expenditure to invoices and other
documentation. We verified whether the amounts
capitalised was
the
recognition criteria of AASB 6 Exploration for and
Evaluation of Mineral Resources;
in accordance with
Confirming whether the rights to tenure for the
areas of interest were current at the reporting
date as well as confirming that the rights to
tenure are expected
for
renewed
tenements that will expire in the near future;
to be
Obtaining evidence of the Group’s intention to
carry out exploration and evaluation activities in
the relevant areas of interest. This included
checking
exploration
expenditure,
reading board minutes and
checking related exploration work programmes;
budgeted
future
Assessing whether the Group has the ability to
fund its planned exploration and evaluation
activities;
Evaluating Group
such
documents
as
announcements made by the Company to the
ASX, geologist and technical reports and board
minutes
to check whether exploration and
evaluation activities in the relevant area of
interest were unsuccessful; and
Assessing the appropriateness of the accounting
treatment and disclosure in terms of AASB 6.
Share Based Payments – Note 14 (g)
Our procedures, amongst others, included:
in
recognised
At 30 June 2022, the Company had recorded
$1,745,445 of share based payments of which
$265,000 was recognised as share issue costs
and $1,480,445 was
the
statement of profit or loss. The fair values of
options are determined using option pricing
models that take into account the exercise
price, the term of the option, the impact of
dilution, the share price at grant date and
expected price volatility of
the underlying
share, and the risk-free interest rate for the
the option. Judgement has been
term of
exercised on
timing of
achieving milestones related to the options and
performance rights.
the probability and
This area is a key audit matter as the valuation
to
of share based payments
and
significant management
judgements.
is subject
estimates
Verifying the key terms and conditions of the
equity settled share based payments including
number of equity instruments granted, exercise
price and vesting conditions to the relevant
agreements and award letters;
Assessing the fair value of the share based
payments by testing the key inputs used in
option pricing model. This included checking
the share price on grant date, exercise price,
option life, volatility and risk free rate to
supporting
and market
information;
documentation
Testing the accuracy of the share based
payments amortisation over
relevant
vesting periods;
the
Assessing the Group’s accounting treatment in
accordance with AASB 2 Share Based
Payments; and
financial statement
Testing
disclosures relating to share based payments.
related
the
Information Other than the Financial Report and Auditor’s Report Thereon
The Directors are responsible for the other information. The other information comprises the information
included in the annual report for the year ended 30 June 2022 but does not include the financial report and
our auditor’s report thereon. Our opinion on the financial report does not cover the other information and
accordingly we do not express any form of assurance conclusion thereon. In connection with our audit of
the financial report, our responsibility is to read the other information and, in doing so, consider whether
the other information is materially inconsistent with the financial report or our knowledge obtained in the
audit or otherwise appears to be materially misstated. If, based on the work we have performed, we
conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Responsibilities of the Directors for the Financial Report
The directors of the Company are responsible for the preparation of the financial report that gives a true
and fair view in accordance with the Australian Accounting Standards and the Corporations Act 2001 and
for such internal control as the directors determines is necessary to enable the preparation of the financial
report that is free from material misstatement, whether due to fraud or error. In preparing the financial
report, is the directors are responsible for assessing the Company’s ability to continue as a going concern,
disclosing, as applicable, matters related to going concern and using the going concern basis of accounting
unless the directors either intend to liquidate the Company or to cease operations, or have no realistic
alternative but to do so.
Auditor’s Responsibilities for the Audit of the Financial Report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free
from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes
our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit
conducted in accordance with Australian Auditing Standards will always detect a material misstatement
when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in
the aggregate, they could reasonably be expected to influence the economic decisions of users taken on
the basis of this financial report.
A further description of our responsibilities for the audit of the financial report is located at the Auditing and
Assurance Standards Board website at https://www.auasb.gov.au/admin/file/content102/c3/ar1_2020.pdf
This description forms part of our auditor’s report.
Report on the Remuneration Report
Opinion on the Remuneration Report
We have audited the Remuneration Report included in pages 24 to 32 of the directors’ report for the year
ended 30 June 2022.
In our opinion, the Remuneration Report of Australian Vanadium Limited for the year ended 30 June 2022
complies with section 300A of the Corporations Act 2001.
Responsibilities
The directors of the Company are responsible for the preparation and presentation of the Remuneration
Report in accordance with section 300A of the Corporations Act 2001. Our responsibility is to express an
opinion on the Remuneration Report, based on our audit conducted in accordance with Australian Auditing
Standards.
ARMADA AUDIT & ASSURANCE PTY LTD
Nigel Dias
Director
Dated, 30 September 2022
Perth
ANNUAL MINERAL RESOURCE STATEMENT
1.
THE AUSTRALIAN VANADIUM PROJECT - MINERAL RESOURCE
STATEMENT
A summary of the Mineral Resources at The Australian Vanadium Project as at 30 June 2022 is shown in
Table 1 Error! Reference source not found. below.
The updated Mineral Resource estimation was carried out Trepanier Pty Ltd and Geologica Pty Ltd, resulting
in the estimation of Measured, Indicated, and Inferred Mineral Resources. All mineralised domains are
reported above 0.4% V2O5 for the low-grade ore zones and above 0.7% V2O5 within the high-grade zones.
The Mineral Resource estimate consists of:
239 million tonnes at 0.73% V2O5 containing 1,741,800 tonnes of V2O5;
A discrete massive high-grade zone of 95.6 million tonnes at 1.07% V2O5 containing 1,017,500 tonnes of
V2O5;
Discrete low-grade zones of 128.5 million tonnes at 0.49% V2O5 containing 625,500 tonnes of V2O5, and
Combined Measured and Indicated Mineral Resources of 93.7 Million tonnes at 0.75% V2O5 in low and
high-grade zones containing 704,800 tonnes of V2O5.
Table 1 The Australian Vanadium Project Mineral Resources Statement (as at 30 June 2022)
Zone
HG
Classification
Measured
Indicated
Inferred
MT
11.3
27.5
56.8
V2O5
%
1.14
1.10
1.04
Fe
%
43.8
45.4
44.6
TiO2
%
13.0
12.5
11.9
SiO2
%
9.2
8.5
9.4
Al2O3
%
7.5
6.5
6.9
LOI
%
3.7
2.9
3.3
Sub-total
95.6
1.07
44.7
12.2
9.1
6.8
3.2
LG 2-5
Measured
Indicated
Inferred
-
54.9
73.6
-
0.50
0.48
-
24.9
25.0
-
6.8
6.4
-
27.6
28.7
-
17.1
15.4
-
7.9
6.6
Sub-total
128.5
0.49
24.9
6.6
28.2
16.1
7.2
Transported Measured
Indicated
6-8
Inferred
-
-
14.9
-
-
0.66
-
-
29.0
-
-
7.8
-
-
24.5
-
-
15.1
-
-
7.8
Sub-total
14.9
0.66
29.0
7.8
24.5
15.1
7.8
Total
Measured
Indicated
Inferred
11.3
82.4
145.3
1.14
0.70
0.71
43.8
31.7
33.0
13.0
8.7
8.7
9.2
21.2
20.7
7.5
13.5
12.0
3.7
6.2
5.4
Sub-total
239.0
0.73
33.1
8.9
20.4
12.3
5.6
2022 Annual Report | 75
ANNUAL MINERAL RESOURCE STATEMENT
(CONTINUED)
MATERIAL CHANGES AND RESOURCE STATEMENT COMPARISON
2.
A comparison between the 2021 and 2022 Mineral Resource Estimates for The Australian Vanadium Project
is shown in Table 2 below.
Table 2 The Australian Vanadium Project Comparison Between 2021 and 2022 Mineral Resource
Estimates
JORC Resource
Class
Tonnes
Million
V2O5
%
Fe
%
TiO2
%
SiO2
%
Al2O3
%
LOI
%
Estimate as at
30 June 2022
Measured
Indicated
Inferred
Total
Estimate as at
30 June 2021
Measured
Indicated
Inferred
Total
11.3
82.4
145.3
239.0
10.1
69.6
128.5
208.2
1.14
0.70
0.71
43.8
31.7
33.0
13.0
8.7
8.7
9.2
21.2
20.7
7.5
13.5
12.0
3.7
6.2
5.4
0.73
33.1
8.9
20.4
12.3
5.6
1.14
0.72
0.73
43.9
32.4
33.5
13.0
8.9
8.8
9.2
20.6
20.2
7.5
13.2
11.9
3.7
6.1
5.4
0.74
33.6
9.0
19.8
12.1
5.6
The updated estimation represented an increase of 11.5% in vanadium tonnes at a similar vanadium grade.
The Group is not aware of any new information or data that materially affects the information as previously
released in the ASX announcement “Mineral Resource Update at the Australian Vanadium Project” of 1st
November 2021 and all material assumptions and technical parameters underpinning the estimates continue
to apply and have not materially changed.
3.
GOVERNANCE ARRANGEMENTS AND INTERNAL CONTROLS
The Group has appropriate systems in place and suitably qualified and competent geological consultants to
complete any resource estimation or review to the required standards as shown in the 2012 JORC Code
Guidelines. The Quality Assurance, Sampling Systems, Assay Procedures, Data Recording, Interpretation
Standards and Resource Estimation Methods and other parameters as set out in Table 1 of the JORC Code
2012 Guidelines are closely followed. The mineral resources reported have been generated by independent
external consultants where appropriate who are experienced in best practices in modelling and estimation
methods. The consultants have also undertaken reviews of the quality and suitability of the underlying
information used to determine the resource estimate. In addition, management carries out regular reviews
and audits of internal processes and external contractors that have been engaged by the group.
The Company policy is that all steps are recorded during the resource drilling program and then the estimation
stage. All results from field logs and assays to database entries and modelling data are validated, reviewed
and checked by independent and qualified geological personnel.
2022 Annual Report | 76
ANNUAL MINERAL RESOURCE STATEMENT
(CONTINUED)
Competent Person Statement – Mineral Resource Estimation
The information in this report relating to The Australian Vanadium Project Mineral Resource estimate reported
is based on and fairly represents information compiled by Mr Lauritz Barnes, (Consultant with Trepanier Pty
Ltd) and Mr Brian Davis (Consultant with Geologica Pty Ltd). Mr Barnes and Mr Davis are members of the
Australasian Institute of Mining and Metallurgy and have sufficient experience of relevance to the styles of
mineralisation and types of deposits under consideration, and to the activities undertaken to qualify as
Competent Persons as defined in the 2012 Edition of the Joint Ore Reserves Committee (JORC) Australasian
Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Specifically, Mr Barnes is
the Competent Person for the estimation and Mr Davis is the Competent Person for the database, geological
model and site visits. Mr Barnes and Mr Davis consent to the inclusion in this report of the matters based on
their information in the form and context in which they appear.
Competent Person Statement – Exploration Results and Exploration Targets
The information in this report that relates to Exploration Results and Exploration Targets is based on and fairly
represents information and supporting documentation prepared by Mr Brian Davis (Consultant with Geologica
Pty Ltd). Mr Davis is a member of the Australasian Institute of Mining and Metallurgy and has sufficient
experience of relevance to the styles of mineralisation and types of deposits under consideration, and to the
activities undertaken to qualify as Competent Persons as defined in the 2012 Edition of the Joint Ore Reserves
Committee (JORC) Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore
Reserves. Specifically, Mr Davis consents to the inclusion in this report of the matters based on his information
in the form and context in which they appear.
Competent Person Statement – Ore Reserves
The technical information in this report that relates to the Ore Reserve estimate for the Project is based on
information compiled by Mr Ross Cheyne, an independent consultant to AVL. Mr Cheyne is a Fellow of the
Australasian Institute of Mining and Metallurgy. He is an employee and Director of Orelogy Mine Consulting
Pty Ltd. Mr Cheyne has sufficient experience that is relevant to the style of mineralisation and type of deposit
under consideration and to the activity being undertaken to qualify as a competent person as defined in the
2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore
Reserves. Mr Cheyne consents to the inclusion in the report of the matters related to the Ore Reserve estimate
in the form and context in which it appears.
Competent Person Statement – Metallurgical Results
The information in this report that relates to Metallurgical Results is based on information compiled by
independent consulting metallurgist Brian McNab (CP. B.Sc Extractive Metal-lurgy), Mr McNab is a Member
of AusIMM. Brian McNab is employed by Wood Mining and Metals. Mr McNab has sufficient experience
which is relevant to the style of mineralisation and type of deposit under consideration and to the activity
which is undertaken, to qualify as a Competent Person as defined in the JORC 2012 Australasian Code for
Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr McNab consents to the
inclusion in this report of the matters based on the information made available to him, in the form and
context in which it appears.
2022 Annual Report | 77
ANNUAL MINERAL RESOURCE STATEMENT
(CONTINUED)
4.
SCHEDULE OF INTERESTS IN MINING TENEMENTS AS AT 20 SEPTEMBER
2022
Project
Tenement
Area
E51/843
Australian Vanadium
E51/1534
Australian Vanadium
E51/1899
Australian Vanadium
E51/1943
Australian Vanadium
Australian Vanadium
E51/1944
Australian Vanadium M51/878
P51/3073
Australian Vanadium
P51/3074
Australian Vanadium
P51/3075
Australian Vanadium
Australian Vanadium
P51/3076
Australian Vanadium M51/897
L51/116
Australian Vanadium
P51/3248
Australian Vanadium
E51/2067
Australian Vanadium
L51/119
Australian Vanadium
E70/4924-I
Coates
E70/5588
Coates
E70/5589
Coates
M51/771
Nowthanna Hill
(NC) 940 PR
Blesberg
Total
12 blocks
8 blocks
16 blocks
5 blocks
1 block
3,565.86 ha
175.12 ha
46.37 ha
26.59 ha
123.53 ha
1,812.05 ha
830.50 ha
5.01 ha
14 blocks
916.86 ha
4 blocks
3 blocks
15 blocks
301.0 ha
887 ha
Equity Annual Expenditure
Commitment
$70,000
$70,000
$20,000
$15,000
$10,000
$356,600
$7,040
$2,000
$2,000
$4,960
Application
Application
Application
Application
Application
$20,000
$15,000
Application
$30,100
-
100%1
100%1
100%1
100%1
100%1
100%1
100%1
100%1
100%1
100%1
100%1
100%
100%1
100%
100%
100%
100%
100%
100%
Nil 2
$622,700
1 Mineral Rights for V/U/Co/Cr/Ti/Li/Ta/Mn & iron ore only.
Bryah Resources Limited retains 100% rights all minerals except V/U/Co/Cr/Ti/Li/Ta/Mn & iron ore on The
Australian Vanadium.
2 AVL has the right to acquire up to 50.03% interest in the holding company that owns 100% interest in
Prospecting Right (NC) 940 PR.
2022 Annual Report | 78
ASX ADDITIONAL INFORMATION
Additional information required by the ASX Listing Rules not disclosed elsewhere in this Annual Report is
set out below. The information is current as at 20 September 2022.
DISTRIBUTION OF EQUITY SECURITIES
1.
Analysis of numbers of equity security holders by size of holding:
Listed Shares,
Fully Paid Ordinary
Range
No of Holders
Number of shares
1 – 1,000
1,001 – 5,000
5,001 – 10,000
10,001 – 100,000
100,001+
237
264
1,348
9,444
4,997
40,738
917,950
11,169,144
416,062,947
3,545,728,954
Total
16,290
3,973,919,733
Listed Options, ASX
code AVLOA
(exercisable at $0.025, expiring 18/12/2022)
Range
No of Holders
Number of shares
1 – 1,000
1,001 – 5,000
5,001 – 10,000
10,001 – 100,000
100,001+
Total
6
2
5
126
238
377
39
4,454
43,842
6,708,485
318,783,607
325,540,427
Unlisted Shares,
Partly Paid Ordinary
Range
No of Holders
Number of shares
1 – 1,000
1,001 – 5,000
5,001 – 10,000
10,001 – 100,000
100,001+
Total
-
-
-
-
5
5
-
-
-
-
68,000,000
68,000,000
Unmarketable Parcels
There were 2,223 holders of less than a marketable parcel of ordinary shares and 16 holders of less than a
marketable parcel of listed options.
2022 Annual Report | 79
ASX ADDITIONAL INFORMATION
(CONTINUED)
UNQUOTED SECURITIES
2.
Holders of more than 20% of the abovementioned unquoted securities are:
Holder Name
Woolmaton Pty Ltd
Mr Muhamad Nur
Lisen Zhang
Unlisted Shares,
Partly Paid
Ordinary
16,000,000
15,000,000
28,000,000
RESTRICTED SECURITIES
3.
There are no restricted securities or securities subject to voluntary escrow as at 20 September 2022.
4.
SUBSTANTIAL SHAREHOLDERS
There were no substantial holders as at 20 September 2022.
CORPORATE GOVERNANCE
5.
The Company’s Corporate Governance Statement is located on its website at: australianvanadium.com.au
6.
TOP 20 SHAREHOLDERS AS AT 20 SEPTEMBER 2022
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
Name
Citicorp Nominees Pty Limited
BNP Paribas Nominees Pty Ltd ACF Clearstream
Mr Leendert Hoesksema & Mrs Aaltje Hoeksema
HSBC Custody Nominees (Australia) Limited
Kalemois Pty Ltd
BNP Paribas Nominees Pty Ltd
BNP Paribas Noms Pty Ltd
Mr Peter James Muir
Mr Jian Wang
Mr Nigel Charles Redvers Duffey
Jalein Pty Ltd
HSBC Custody Nominees (Australia) Limited – A/C 2
Superhero Securities Limited
Mr Ian Ross Freeman
Mr Neale Parsons
J P Morgan Nominees Australia Pty Limited
Mr Fred Chi Kit Teng
Mr Robert Glyn Salathiel & Mrs Danielle Louise Salathiel
Mr Hoang Huy Nguyen
Mr Brenton David Witcombe
Total
Total Remaining Holders Balance
Number of Shares
295,171,054
146,345,623
91,000,000
69,480,702
65,937,212
60,866,376
39,933,573
30,000,001
26,076,687
22,000,000
20,000,000
19,148,205
17,917,754
17,000,000
15,000,000
14,446,476
14,000,000
13,966,424
% of
Shares
7.43
3.68
2.29
1.75
1.66
1.53
1.00
0.75
0.66
0.55
0.50
0.48
0.45
0.43
0.38
0.36
0.35
0.35
12,800,000
11,033,791
1,002,123,878
2,971,795,855
0.32
0.28
25.22
74.78
2022 Annual Report | 80
ASX ADDITIONAL INFORMATION
(CONTINUED)
7.
TOP 20 OPTION HOLDERS AS AT 20 SEPTEMBER 2022
1
2
3
4
5
6
7
8
9
10
11
12
12
12
13
14
14
14
15
16
17
18
19
20
Name
Merrill Lynch (Australia) Nominees Pty Limited
J & R Superannuation Pty Ltd
HSBC Custody Nominees (Australia) Limited
Matthew Burford Super Fund Pty Ltd
JJ Sunrise Investment Pty Ltd
Mr Daniel Aaron Hylton Tuckett
Mr Richard Merlin O’Sullivan
Mr James Shein
The Victor Van Superannuation Fund Pty Ltd
Mr Dean Andrew Kent
Mr Michael James Ashby
Sunarp Pty Ltd
Mr Peter John Corbett
Finepoint Holdings Pty Ltd
Mr Fred Chi Kit Teng
Mr Peter John Richards Baskin
Munrose Investments Pty Ltd
Mr Muhammed Salih Yilmaz
Mr Martin McCleave
Mr Andrew Blair Pirrit
Mrs Marie Hemmings
Mr Christopher Mark Worthy
Mr David Lipari & Mrs Paula Lipari & Mrs Janice Lipari
P A Shakespeare Investing Pty Ltd
Total
Total Remaining Holders Balance
Number of Shares
25,714,285
25,078,400
20,000,000
11,414,982
10,250,000
10,027,940
8,253,231
7,350,000
7,092,042
7,000,000
5,294,349
5,000,000
5,000,000
5,000,000
4,888,888
4,000,000
4,000,000
4,000,000
3,615,400
3,497,982
3,200,000
3,000,465
3,000,000
% of
Shares
7.90
7.70
6.14
3.51
3.15
3.08
2.54
2.26
2.18
2.15
1.63
1.54
1.54
1.54
1.50
1.23
1.23
1.23
1.11
1.07
0.98
0.92
0.92
2,950,000
188,627,964
136,912,463
0.91
57.94
42.06
2022 Annual Report | 81
Australian Vanadium Limited
ACN 116 221 740
Australian Vanadium Limited
Level 1, 85 Havelock Street
West Perth WA 6005
Telephone: +61 8 9321 5594
www.australianvanadium.com.au
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Annual Report
2022