Annual Report
2020
ioneer Ltd
ABN 76 098 564 606
Contents
Highlights ................................................... 1
Directors’ report ....................................... 17
Chairman’s letter ......................................... 2
Auditor’s independence declaration ........... 24
Who we are ....................................................4
Remuneration report ................................. 25
Operational report ...................................... 6
Financial statements ................................. 45
Environmental and social
responsibility report .................................. 11
Board of Directors .................................... 14
Senior Executives ...................................... 15
Financial report ......................................... 16
Directors’ declaration ................................. 70
Independent auditors report ...................... 71
Other information ..................................... 76
Shareholder and ASX information .............. 79
Corporate directory .................................IBC
AGM
The ioneer Annual General Meeting will be held at 10am on Friday, 6 November 2020.
In response to government restrictions and the potential health risks associated with
COVID-19, this year the Company’s AGM will be held virtually. There will not be a
physical meeting where shareholders can attend but shareholders can participate in the
meeting online via https://web.lumiagm.com/379453410.
ioneer Annual Report 2020
IONEER
Providing the materials for a
sustainable and thriving planet.
Demonstrated potential to become a world-class
lithium-boron project
DFS confirms plans for a large, long life,
low cost operation
Co-production of lithium and boron on-site
secures ioneer’s position as the lowest cost
lithium producer in the world
Strategically advantageous location in a tier-one
mining jurisdiction with easy access to key US
and Asian markets
Set to produce two materials essential in a
modern world and well-positioned to capitalise
on forecast electric vehicle demand boom in 2023
Substantially completed offtake for boron
production, while advancing discussions with a
range of potential strategic and funding partners
Highly experienced board and management with
necessary skills to develop, build and operate a
world-class lithium-boron mine
Engaged top-tier mining, engineering, processing
and environmental partners in Fluor, Golder,
Veolia, and SNC Lavalin
100%-OWNED
RHYOLITE RIDGE
Lithium-Boron Project in
Nevada, USA
26-YEAR PLUS
MINE LIFE
20,600 tonnes lithium carbonate
forecast annually in years 1-3
22,000 tonnes lithium hydroxide
forecast annual production
from year 4
174,400 tonnes boric acid
forecast annual production
WORLD-SCALE
RESOURCE
Large Mineral Resource of
146.5 million tonnes
Large Ore Reserve of 60.0 million
tonnes
Ore Mined over 26 years of
63.8 million tonnes
Significant expansion potential
LOWEST COST
LITHIUM PRODUCER
GLOBALLY
benefitting from co-production
of boron, unique mineralogy and
physical properties of asset
A STRATEGIC ASSET
as the US looks to diversify and
secure its supply of battery metals
1
Chairman’s letter
It’s been a milestone period for the Company.
In particular, the delivery of the DFS confirmed our
long-held view that Rhyolite Ridge is a world-class
asset with robust economics for a low cost, large-
scale and long-life Project.
James D. Calaway
Executive Chairman
Dear Shareholders,
It is with great pride and enthusiasm that ioneer presents the
Company’s 2020 Annual Report.
It has been a year of significant progress for ioneer. The extensive
work delivered in FY 2020 allows the Company to start the new
year with momentum to complete the Project engineering,
obtain environmental approvals, fund the project, and commence
construction of our flagship Rhyolite Ridge Lithium-Boron project
in Nevada, USA.
Central to this momentum was the delivery of the Definitive
Feasibility Study (DFS) in April 2020. The DFS was delivered
almost four years to the day that ioneer’s CEO first set foot on
the Rhyolite Ridge deposit. The DFS results confirmed our belief
that the project was a world-class asset with a large reserve and
resource, long life, and an all-in sustaining cash cost at the very
bottom of the global lithium cost curve.
The conclusion of the DFS was the culmination of four years
of hard work by ioneer and its committed team of contractors.
The achievement of this key milestone, informed by our world
class Pilot Plant, has given the Company high confidence in the
robust economics of the Project and a discerning understanding
of our flowsheets and construction plans. The confidence from
this extensive work led the Company to continue detailed
engineering activities, even in these challenging times, in order to
be construction ready in Q2 2021, and achieve first production in
mid-2023.
Our Project is also compelling from an environmental perspective.
Our core mission is to produce the materials necessary for a
sustainable future. To honour this mission, our plans have been
very carefully designed to deliver an environmentally sensitive
and economically feasible project that ensures the least possible
impact to local flora and fauna. We have worked for more than
two years to complete multiple environmental baseline studies,
which comprise the basis of our Plan of Operations – a major
undertaking this past year. We are pleased that this work has
been extensively reviewed and accepted by the Bureau of Land
Management (BLM) allowing the Environmental Impact Study
(“EIS”) approval process to continue.
Central to Project delivery is our funding strategy, a key
component of which is the identification of a strategic partner
whose interests and capabilities support and advance our
business plans. We have been engaged in discussions with a
range of strategic players over the past year; however, we realised
that the results of the work related to the Pilot Plant and the
delivery of our comprehensive DFS were key to advancing those
discussions to conclusion. Now, as the 2020 fiscal year closes, we
are pleased to have important potential partners continuing their
detailed due diligence.
Once the strategic partnering process is completed, ioneer
will assess remaining capital requirements to support our ‘Final
Investment Decision’ (FID) with the support of Goldman Sachs,
who are assisting and advising the Company in completing our
funding solution.
We were also very pleased to have appointed experienced
finance and investment manager, Julian Babarczy, to the ioneer
Board in June 2020.
Our achievements this year have been delivered in spite of a
challenging overall macro environment, which had a notable
impact on the lithium sector. Lithium prices have materially
deteriorated, putting a number of projects under significant
pressure, with those on the higher end of the cost curve taking
the brunt of the downturn.
This situation has been exasperated and prolonged by the
COVID-19 pandemic. The complete shutdown of the global
auto sector in the first half of 2020 slashed demand, exposed
growing lithium stockpiles, and greatly impacted the pre-
pandemic mismatch between supply and demand. As a result,
the anticipated 2020 work down of lithium inventories has been
delayed into late 2020 or early 2021.
We anticipate that the industry will continue to face headwinds
in the short-term, and are therefore controlling what is within our
control during this time, remaining laser-focused on securing
our funding and permitting, while preparing for the mid-term
to ensure that we are ideally placed to capitalise on demand
recovery and likely supply shortages, as governments across
the globe increasingly promulgate incentive systems to rapidly
reduce reliance on fossil fuels and lowering greenhouse gas
emissions. The plethora of new and exciting electric vehicle
offerings across a wider price point in the mid-term, coupled with
2
ioneer Annual Report 2020 these governmental policies will drive the surge in electric vehicle
uptake globally. ioneer believes these likely developments will
shift the winds in the industry, and usher in a strong tailwind for
lithium producers at the bottom of the cost curve.
To this end, Rhyolite Ridge is extremely well-positioned as the
only DFS level project in the United States and the most advanced
lithium project in North America. Even more, Rhyolite Ridge’s
unique minerology enables us to generate two important revenue
streams, with the co-production of boron solidifying the Project’s
position at the very bottom of the global lithium cost curve, while
benefitting ioneer with critically important revenue stability.
Let me take a moment to thank our remarkable team, led by our
able and dedicated CEO, Bernard Rowe. The growing Reno-
based team, along with our terrific engineering, procurement
and construction partner, Fluor Corporation, and related
support contractors, have continued to meet the challenge of
demonstrating excellence in execution and driving our Project to
conclusion despite the difficulties of COVID-19 we have faced this
year. Spirits are high, and the team remains fully committed to our
core mission to make ioneer a leading, environmentally sensitive
producer of the materials critical to a sustainable future.
I also want to thank our Board of Directors, who are as dedicated
as our management team, for the past year of endless work,
commitment to good governance, and wise counsel.
And finally, I want to thank our shareholders for their patience,
understanding and support in a year where the macro conditions
of our industry have translated into disappointing market
performance. As we enter into the new fiscal year, we are
optimistic about what lies ahead for our Company and look
forward to delivering on our objectives and driving value for
our shareholders.
With appreciation,
James D. Calaway
Executive Chairman
ioneer Ltd
Document No.: RR30-1000-91-PM-REP-0000
March 2020
IONEER USA Corp.
Rhyolite Ridge Lithium-Boron Project
Definitive Feasibility Study (DFS) Report
ioneer Managing Director,
Bernard Rowe, standing on
outcrop hill leading a site visit
Looking north toward
outcrop hill at the Rhyolite
Ridge Lithium-Boron Project
Rhyolite Ridge Process Plant
A key milestone was the delivery
of the DFS in April 2020
3
Who we are
The Company’s 100%-owned Rhyolite Ridge Lithium-Boron Project in
Nevada, USA provides a substantial foundation for ioneer to become
a responsible and profitable producer of the materials necessary for a
sustainable future.
Nevada is one of the most attractive, mining-friendly jurisdictions
globally with a large pool of skilled labour, well-established
infrastructure, and proximity to the Tesla Gigafactory and
California ports. Rhyolite Ridge is a strategically important
deposit as the USA works to secure and diversify its supply of
battery metals and other critical metals essential to modern life
and the future.
The Company has a highly experienced board and management
with the necessary skills to develop, build and operate a world-
class lithium-boron mine in the United States. The ioneer team
is complemented by top-tier mining, engineering, processing
and environmental partners including Fluor, Golder, Veolia, and
SNC Lavalin.
ioneer is an emerging lithium-boron
producer that is set to become the single
most attractive lithium project globally.
Rhyolite Ridge is one of only two known large lithium-boron
deposits globally. In 2020, ioneer delivered its DFS which
confirmed the Project’s scale, long life and potential to become
a low-cost and globally significant producer of both lithium and
boron products.
Rhyolite Ridge’s unique mineralogy and physical properties of
the Rhyolite Ridge ore allows for a flowsheet that combines
commercially available processes and equipment to produce
lithium and boron end-products at the mine site without the
need for solar evaporation or high-temperature roasting.
Revenue generated from the operation is forecast to be split
between lithium (70%) and boron (30%), ensuring a diversified
and stable revenue mix.
Importantly, with the boron credit, ioneer is set to achieve an
all-in sustaining cash cost at the bottom of the cost curve for
lithium globally.
Lithium and boron are used in a diverse range of everyday
items and innovative technologies that are essential to modern
life. Lithium in particular is linked directly to emerging clean
technologies and is an irreplaceable component for batteries
essential to electric vehicles. ioneer is well-positioned to
capitalise on the lithium supply deficit forecast to rapidly
accelerate by 2023.
Lithium carbonate (years 1-3), lithium hydroxide (year 4 onwards)
and boric acid end products will be produced at site,
differentiating Rhyolite Ridge from other projects.
Satellite image of the basin outline with drill
holes highlights expansion opportunities to
the north, south and east
4
ioneer Annual Report 2020 Low-risk, mining friendly jurisdiction proximate to the Pacific coast
for entrance into US and Asian end markets.
Rhyolite
Ridge
ADVANTAGES
COMPELLING PROJECT
ECONOMICS
Long mine life with rapid payback of
capital: 5.2 years from first production.
LOWEST COST LITHIUM
PRODUCER GLOBALLY
All in sustaining cash cost at the bottom
of the global lithium cost curve with
co-production of boron.
LARGE DEPOSIT
26-year mine life with verified
expansion potential.
WELL-DEFINED PROCESS
FLOWSHEET
Open pit, low cost, proven
technology.
LOW RISK LOCATION
US Advantage, mining friendly jurisdiction
proximal to Tesla Gigafactory and
California export ports.
SUSTAINABLE PROJECT
Small footprint, low emissions,
low water usage.
5
Operational report
At an all-in sustaining cash cost of $2,510 per metric
tonne net of boric acid revenue, Rhyolite Ridge
is the single most attractive lithium resource to
economically produce lithium carbonate, lithium
hydroxide, and boric acid globally.
Bernard Rowe
CEO and Managing Director
The fiscal year ended June 2020 was a
significant one for ioneer, delivering its
Definitive Feasibility Study (DFS) that
validated Rhyolite Ridge as a world-class
resource with significant value creation
potential. The DFS demonstrates ioneer’s
potential to become a major, low-cost
and long-term US source of lithium and
a credible alternative to spodumene and
brine deposits that dominate supply in
the lithium market today.
The unique mineralogy and physical properties of the lithium-
boron ore at Rhyolite Ridge, combined with the commercially
available processes and equipment, have enabled ioneer to
secure its position at the bottom of the global lithium cost curve.
At an all in sustaining cash cost to produce battery grade lithium
hydroxide of $2,510 per metric tonne net of boric acid revenue,
Rhyolite Ridge is the single most attractive lithium resource to
economically produce lithium carbonate, lithium hydroxide, and
boric acid globally.
Over the past year, ioneer has also achieved:
• A 280% upgrade to the Ore Reserve estimate for Rhyolite
Ridge and a 26% increase in boron grades;
• Significant progress in its state and federal permitting
processes;
• Expansion of its research agreement with the University
of Nevada, Reno (UNR) for the conservation of Tiehm’s
buckwheat, with the study yielding early success in
germination rates; and,
• Continued discussions with a range of potential strategic and
financing partners.
• Significant boric acid offtake and sales and distribution
agreements.
Definitive Feasibility Study
In April 2020, ioneer delivered its Rhyolite Ridge DFS, undertaken
by independent and globally recognised engineering firm Fluor
Enterprises (Fluor) along with a world class team of associated
engineering and equipment suppliers. The DFS validates Rhyolite
Ridge as a world-class resource with significant value creation
potential due to its very low-cost, large-scale operation and long
mine life.
6
ioneer Annual Report 2020 The Project is located in Nevada, United States, a stable, low-risk
mining-friendly jurisdiction with a large pool of skilled labour
and well-established infrastructure. Importantly, its location
places the project in close proximity to the Tesla Gigafactory and
California export ports, enabling it to supply key US and Asian
end markets.
The DFS places Rhyolite Ridge as the single most attractive
Project for the economic production of lithium carbonate, lithium
hydroxide and boric acid globally. The DFS analysis positions
ioneer, on an LCE basis, as the lowest cost lithium producer
globally with an estimated all-in sustaining cash cost to produce
battery grade lithium hydroxide of US$2,510 per metric tonne net
of boric acid revenue.
The DFS also confirms that the Project has the most stable
overall operating cost structure for the production of lithium
carbonate and battery grade lithium hydroxide due to the scale
and reliability of its boric acid credit. The extensive bench and
pilot scale testwork conducted by Fluor, Kemetco Research and
Kappes Cassiday, with support from Veolia and FLSmidth, has
proven highly successful with excellent recoveries, the innovative
use of proven processing technologies, and the production of
high purity lithium and boric acid products.
During the extensive DFS process, Project plans were further
developed and refined, helping to ensure predictable,
sustainable and very low operating costs for the life of the
Project. This includes the addition of a steam turbine for power
generation, which will provide the entire operation with enough
energy to be fully self-sufficient.
The current 26-year mine plan is made up almost entirely of
Reserve material (94%), and of that nearly 50% is Proved Ore
Reserve. The resource remains open in three directions allowing
for a potential extension to the life of the mine or expansion
opportunities in the future.
Compelling project economics confirmed by DFS
After-tax NPV
(8% real)
US$1.27B
Unlevered
After-tax IRR
~21%
Annual
After-tax Cashflow
US$193M
Annual Revenue
US$422M
Estimated Capex
US$785M
Rapid payback
5.2 years
DFS SCHEMATIC OF RHYOLITE RIDGE PROCESSING PLANT
7
Operational report continued
Reserve & Resource upgrade
In April 2020, ioneer announced a 280% upgrade to the Ore
Reserve estimate for Rhyolite Ridge, based on a mining study
completed by Golder Associates Inc. (Golder) for the Rhyolite
Ridge DFS.
The Ore Reserve increased by 44.2 mt and is now estimated
to contain:
• 60.0 mt at 1,800 ppm lithium (equivalent to 1.0% lithium
carbonate) and 15,400 ppm boron (equivalent to 8.8%
boric acid);
• 0.6 mt of equivalent lithium carbonate and 5.3 mt of equivalent
boric acid.
Approximately half (47%) of the Ore Reserve is now classified as
Proved, the highest confidence category, with lithium and boron
grades in the Proved Reserve higher than those in the Probable
Reserve category. The planned Stage 1 quarry is exclusively
Proved Reserves with higher-than-average lithium grades, which
will provide higher cash flow in the early years of the Project.
Compared with the 2018 Ore Reserve estimate (prepared by
RPM Global), the overall lithium grade remained the same at
1.0% lithium carbonate, while the boron grade increased by 26%
in the total Ore Reserve, significantly lifting boric acid production.
The 2020 Mineral Resource is now estimated to contain:
• 146.5 mt at 1,600 ppm lithium (equivalent to 0.9% lithium
carbonate) and 14,200 ppm boron (equivalent to 8.1%
boric acid);
• 1.2 mt of equivalent lithium carbonate and 11.9 mt of
equivalent boric acid.
The Ore Reserve provides the foundation for a very long Project
mine life and the Mineral Resource underpins clear potential for
expansion and extension.
Pilot Plant
ioneer continued to operate its full-simulation Pilot Plant
located in Vancouver, Canada, under the oversight of Kemetco
Research Inc, one of Canada’s largest privately-owned contract
research and development laboratories, specialising in extractive
metallurgy, chemical processing and specialty chemical analysis.
Extensive testwork was undertaken to simulate and optimise
the proposed commercial flowsheet for the DFS. This work has
continued to play a critical role in ensuring a comprehensive
understanding of the process flowsheet and has resulted in
improved engineering design and operating plans.
Initial boric acid produced by the Pilot Plant contained very
low levels of impurities and was found to be a premium-grade
product. Further analysis confirmed that the lithium carbonate
produced at the Pilot Plant met or exceeded the specifications
required by customers for technical grade lithium carbonate.
The Pilot Plant has continued to play an important role in
deepening discussions with potential partners and has been
demonstrated to 20 potential strategic and financing partners
throughout the year. Output from the Pilot Plant will continue to
be used to advance discussions with potential customers and
partners.
8
State and federal permitting process
ioneer has progressed significantly in state and federal
permitting processes.
Plan of Operations submitted
A formal Project Plan of Operations has been submitted to
the United States Bureau of Land Management (BLM) for the
Rhyolite Ridge Project.
Submission of the Plan is a significant step toward Project
approval. The Plan includes 14 baseline studies completed by
the ioneer team and specialist consultants over a 2-year period
on areas of study including air quality, biology, cultural resources,
groundwater, recreation, socioeconomics, soils and rangeland.
The BLM has contracted Stantec to prepare and complete an
Environmental Impact Statement for Rhyolite Ridge as part of the
National Environmental Policy Act (NEPA) process.
ioneer’s Plan reflects its strong commitment to creating a
sustainable, environmentally friendly operation in line with its
vision of becoming a responsible and profitable producer of the
materials necessary for a sustainable future. This includes a low
emissions processing plant, an extraction process designed for
low energy consumption and substantially reduced water usage,
a small surface mine footprint, and significant investment into its
Tiehm’s buckwheat protection plan.
Air & Water Quality permits submitted
A formal application for a Class II Air Quality Permit has been
submitted by ioneer for the Rhyolite Ridge Project. Produced by
Trinity Consultants, an international environmental consulting firm
that specialises in industrial air quality issues, projected results of
the permit application are indicative of ioneer’s commitment to
environmental stewardship.
With off-grid, internally generated zero carbon dioxide power,
low emissions and minimal hazardous air pollutants, Project
source emissions are projected to be between 5% and 60% below
the applicable permitting thresholds, and a “minor source” for all
permitted emissions.
An application was also submitted to the Nevada Division of
Environmental Protection, Bureau of Mining Regulation and
Reclamation (BMRR) for a Water Pollution Control Permit,
necessary for the construction of any mining facility. Water
pollution control permits are subject to public review and notice
requirements and must be reviewed every five years.
Economic Impact Study
In May 2020, ioneer released in Nevada the results of a report
assessing the estimated economic impact of the Rhyolite Ridge
Lithium-Boron Project. The Economic Impact Study was developed
by Applied Analysis, an independent, Nevada-based consulting
firm with extensive experience in preparing economic and fiscal
impact analyses. Applied Analysis reviewed and analysed the
economic, fiscal and social impacts associated with the Project
from construction through the proposed mine’s expected life.
The findings of the Study suggest that the Project will generate
between US$15 billion to US$35 billion in total economic output,
including a total labour income of US$3 billion to US$6 billion,
based on the firm’s “median” case assumptions over the
modelled 26 and 60-year mine life.
ioneer Annual Report 2020 Tiehm’s buckwheat preservation
In April 2020, ioneer announced the expansion of its research
agreement with the University of Nevada, Reno (UNR), funding a
five-year study that will focus on the successful propagation and
growth of Tiehm’s buckwheat at its Rhyolite Ridge Project.
The expanded agreement comes following researchers
reporting early success, with the UNR research team successfully
growing over one thousand Tiehm’s buckwheat seedlings
from seeds collected at Rhyolite Ridge in supercell pots at the
UNR greenhouse.
Seedlings have been planted at Rhyolite Ridge in a
demonstration of ioneer’s commitment to proactively protect
the Tiehm’s buckwheat population and ensuring it thrives in its
natural environment.
ioneer has continued to engage with community and government
stakeholders, including participation in public workshops
associated with the listing process for Tiehm’s buckwheat and
providing information to the related government agencies.
Environmental stewardship is at the core of ioneer’s mission to
develop the unique Rhyolite Ridge Lithium-Boron operation that
will produce large quantities of vital materials critical to reducing
greenhouse gas emissions.
Pilot Plant impurity removal reactors
Kemetco Pilot Plant site visit
Rhyolite Ridge Processing Plant
Plant Utilities
Sulphur Supply
Power Plant
Evaporation/Crystallization
Lithium Hydroxide Circuit (Expansion)
Vat Leach Plant
Reagents
Lithium Carbonate Circuit
Boric Acid Circuit
Sulphuric Acid Plant
Ore handling/Sizing and Storage
9
Operational report continued
Strategic Partner & Offtake discussions
Over the last 12 months, ioneer has made notable progress
on its funding solution process, with the support of its financial
advisors. In December 2019 and May 2020, ioneer made
announcements related to three separate offtake and sales and
distribution agreements for its boric acid supply, securing nearly
100% of its boric acid production in years one through three of
operations. ioneer has continued to advance its discussions with
a wide range of strategic players who could become part of its
funding solution.
In November 2019, ioneer completed a fully subscribed
underwritten institutional placement to professional and
sophisticated investors, raising A$40million at A$0.20 per share,
the proceeds of which are being used to advance the Project
toward a Final Investment Decision through the completion of
the DFS, advancing its detailed engineering, completion of the
environmental approval process, and ongoing working capital.
Ongoing Offtake Discussions
Product samples from ioneer’s Pilot Plant have been sent to over
30 potential customers for offtake negotiations. During the year,
ioneer signed significant agreements with several key partners:
• A binding offtake agreement with Dalian Jinma Boron
Technology Group Co. Ltd for 105,000 tonnes per annum
of boric acid for five years, which included a distribution
agreement for the territories of China and Taiwan,
commencing in Q1 2023.
• A three-year sales and distribution agreement with Kintamani
Resources Pte Limited for the territories of Malaysia, Indonesia,
Singapore, Thailand, Vietnam and the Philippines.
• A three-year sales and distribution agreement with Boron
Bazar Limited (Boron Bazar) for the territories of Bangladesh,
India, Pakistan and Myanmar.
Together the Agreement accounted for 100% of ioneer’s first year
of boric acid production and over 80% of years two and three
boric acid production, with highly respected boron sales and
distribution companies in key Asian jurisdictions.
The signing of these Agreements substantially completes the
core components of ioneer’s Asian boric acid marketing plan to
secure direct offtake or distribution and sales agreements with
recognised industry participants for major Asian countries.
ioneer has also signed a letter of intent with Shell Canada for the
purchase of 60% of sulphur requirements, totalling 250,000 tonnes
annually. This represents one of the first steps toward securing key
reagents for the proposed acid leaching of the Project’s lithium-
boron Searlesite ore.
Strategic Partnering
ioneer intends to fund its Project with various sources of capital
including strategic partnering, debt and equity. ioneer views a
strategic partner as central to this funding solution. It is currently
in advanced discussions with a wide range of strategic players
who would become part of this funding solution.
These discussions are progressing well, despite the economic
disturbance of COVID-19, which is a strong reflection of the
significant value that ioneer is positioned to deliver over the life
of the Project.
ioneer, along with its advisors, will seek to continue engaging
with various interested parties as we move closer to securing the
Project’s funding solution.
Bernard Rowe
Managing Director
Lithium Carbonate product sample
10
ioneer Annual Report 2020 Environmental and social responsibility report
At ioneer, our mission is rooted in producing the materials necessary
for a sustainable future as we work to become a globally significant
and responsible producer and supplier of lithium and boron.
Over the course of fiscal year 2020, we
continued to develop the Baseline Studies
and Plan of Operations for the Rhyolite
Ridge Project. Central to this Plan is the
responsible extraction of lithium and
boron and providing shared economic,
environmental and social value.
With ESR at the core of our business, the adoption of best-in-
class practices is a future area of focus for the Company. As
we progress toward construction and into production, we are
committed to continuing to expand our disclosure and reporting
practices in this area.
This year, we are pleased to lay the foundation for the future by
establishing sustainability pillars that will drive our efforts for years
to come.
Clean energy
Environment
People &
Community
CLEAN ENERGY
Producing the materials for a greener future
ioneer is set to become a globally significant supplier of lithium
carbonate, lithium hydroxide and boric acid, which are vital
materials to reducing greenhouse gas emissions and creating a
globally sustainable future.
Lithium is a critical raw material to enable technologies that may
reduce contributions to climate change. It is an irreplaceable
component for lithium-ion batteries, which are essential to electric
vehicles (EVs) and green energy storage systems that lead to
emission reductions.
As a result of the global push toward decarbonisation and
green energy solutions, the global lithium market has also been
expanding rapidly.
According to Benchmark Minerals, EVs are predicted to reach
10% of total new car sales globally by 2025, driving demand for
lithium-ion batteries above 400 GWh that same year. A significant
portion of the global demand for lithium-ion batteries comes
from China, where the government is pushing for all-electric
battery cars and plug-in hybrids to account for at least 20% of its
vehicle sales by 2025. Meanwhile, China already produces 55% of
lithium-ion batteries globally, and its share is forecast to grow to
65%, according to Bloomberg.
In the U.S. and Europe, there is significant growth in demand
forecast in key auto markets yet very little domestic supply is
in the pipeline. Rhyolite Ridge will be a secure, reliable and
sustainable source of this critical raw material, ready to be sold
directly into these global battery supply chains.
Boron is a rare, critical raw material and one of the most versatile
elements in the world. With more than 130 unique applications,
from glass, to insulation, to agriculture and industrial uses. Boron
is also an important component in powerful magnets for electric
cars and wind turbines as well as advanced glass for solar panels.
With global demand for boric acid consistently rising at 4%
annually, the market for boric acid is expected to start tightening
dramatically as soon as 2021. Without Rhyolite Ridge, demand
is expected to exceed supply by 2024, which supports the
assumption that the market needs additional capacity.
Through the environmentally-sensitive development of the
Rhyolite Ridge Lithium-Boron Project, ioneer will unlock much
needed western supply of lithium and boric acid to support
global initiatives toward decarbonisation and clean energy
solutions across a wide range of end uses and geographies.
ENVIRONMENT
Environmentally-friendly operation
The unique mineralogy of Rhyolite Ridge allows both lithium
and boron to be extracted in a low-cost and environmentally
responsible manner.
We will produce lithium carbonate, lithium hydroxide and boric
acid using off-grid, energy-efficient processes with minimal
carbon dioxide (CO2) emissions from heat and electricity
generation, resulting in a processing plant with low emissions of
greenhouse gases and minimal hazardous air pollutants. The final
processing design was derived after thousands of hours of bench
11
Environmental and social responsibility report
continued
and pilot plant tests with our partner Kemetco Research, and
extensive work by the Project’s engineering team, led by Fluor.
Water usage associated with the process is extremely low
compared to other lithium producers that utilise brine extraction
and solar evaporation. The design is based on the recycling of
the majority of water usage, which further reduces make-up water
demand.
Community engagement has been a critical component of our
strategy and workstreams since day one and we continue to
create and invest in local initiatives to further support and deepen
our relationships in the community. In 2020, we have hosted two
community meetings, bringing together a significant number of
community members and ioneer representatives to discuss the
Project and the opportunities that it will afford Esmeralda County.
Low-energy consumption, substantially reduced water usage,
and a relatively small surface footprint make Rhyolite Ridge a
sustainable, environmentally friendly operation.
Air quality on site will be strictly maintained with the Project’s
use of the lowest emission class of mobile equipment, and
technology deployed in its sulphuric acid plant that guarantees
the lowest possible rate of emissions in large acid plants.
ioneer has conducted in-depth analysis to quantify the emissions
of greenhouse gases generated from the Project, the results of
which confirmed that the Project realises a significant benefit from
the facility’s on-site power generation, thanks to its state of the art
sulphuric acid plant.
Tiehm’s buckwheat
We are committed to protecting the local flora and fauna in the
region. A critical component of our environmental strategy is the
preservation of Tiehm’s buckwheat, a small perennial herb that is
native to Rhyolite Ridge. We have developed and implemented a
comprehensive Tiehm’s buckwheat protection plan, that includes
strict environmental protection measures. These measures have been
in place since exploration commenced at Rhyolite Ridge in 2016.
In line with this initiative, ioneer announced in April 2020 the
expansion of its research agreement with the University of
Nevada, Reno (UNR), advising that it would fund a 5-year research
and propagation program with UNR. This followed early success
by the UNR research team growing more than a thousand
Tiehm’s buckwheat seedlings in the UNR greenhouse from seeds
collected at the site, with germination rates far exceeding initial
expectations and a high transplant survival rate.
ioneer has actively participated in workshops associated with
state listing processes for Tiehm’s buckwheat. This included
ioneer representatives delivering presentations to participants on
its efforts to ensure that the plant and its habitat are protected,
and that the potential impacts caused by development of
the Rhyolite Ridge Project are minimised. We remain in close
coordination with the Nevada Division of Forestry (Department
of Conservation and Natural Resources) and the U.S. Fish and
Wildlife Service.
PEOPLE & COMMUNITY
There is significant potential for ioneer to make a positive impact
on the environment across the globe and that potential starts in
and with the support of the local communities in which we operate.
The Rhyolite Ridge Project could have a tremendous positive
economic impact on Esmeralda County, adjacent counties, the
state of Nevada and the entire country over multiple decades. In
the near term, it is expected to create 400-500 construction jobs
and 200-300 high-paying operating jobs.
ioneer Sustainable World Scholarship
In June 2020, we were proud to announce recipients of
our inaugural ioneer Sustainable World Scholarship, which
was established to invest in Nevada’s future by supporting
Tonopah High School students pursuing higher education.
In response to unprecedented hardships experienced by this
year’s graduating students, we increased our commitment
to the scholarship program by selecting three recipients.
The scholarships will provide financial support to the
recipients throughout their 4 year college education.
TAAF Airmen’s Memorial
ioneer is a proud sponsor of the Tonopah Army Air Field (TAAF)
Airmen’s Memorial, which honours the 121 airmen that lost their
lives at the TAAF during World War II. The memorial includes a
plaque with the names of the airmen, a B-24 Liberator engine,
as well as benches and landscaping to create a public space
for the community on Main Street. The memorial has served
as a reminder of Tonopah’s rich military history and generated
significant community interest and support.
Our People
Over the past year we have expanded our team with a range
of experts from the mining, finance and energy industries who
are committed to supporting ioneer toward achieving our
sustainability vision.
The high-quality additions to our Board and Management team
bring the relevant skills and experience to foster and support
our vision for sustainability. Their leadership and governance of
initiatives, now and into the future, will ensure that ioneer is able
to become a responsible and profitable producer.
The ioneer Board is continuing an overall evaluation of its Board
and management team, seeking the right composition and
structure as we enter this next phase of growth. We continue our
commitment to building a culture that reflects our values of being
imaginative, caring, committed and responsible.
Governance
We are committed to ensuring best practice and operate within
the frameworks of a number of internal policies. The Disclosure,
Diversity, Shareholder Communications, Trading, Whistleblower
and Anti-Bribery & Corruption policies, as well as the overarching
Code of Conduct, make clear our commitment to ensuring
ethical and sustainable operations for our employees, partners,
shareholders and other key stakeholders.
Transparency and best practice are formally monitored through
management level committee charters, including the Audit
and Risk Committee Charter, Nomination and Remuneration
Committee Charter and Board and Governance Charter.
12
ioneer Annual Report 2020 Planting underway of Tiehm’s buckwheat at Rhyolite Ridge
Tiehm’s buckwheat seedlings UNR greenhouse
Dyer community meeting January 2020
Dyer community meeting July 2020
Recipients of the ioneer Sustainable World Scholarship from Tonopah High School
Transplanted Tiehm’s buckwheat
Community meeting July 2020
13
Board of Directors
Mr James D Calaway
Executive Chairman
BA (Econ), MA (PP&E)
Former: Non-exec Chairman of Orocobre
James Calaway has considerable
experience and success in building
young companies into successful
commercial enterprises. He was the
non-executive chairman Orocobre Ltd
for 8 years, helping lead the company
from its earliest development to becoming
a significant producer of lithium carbonate
and a member of the ASX 300.
Mr Bernard Rowe
Managing Director
BAppSc (Geology) (Hons)
Founding Managing Director of INR since
IPO in 2007
Bernard Rowe is a geologist, manager
and company director with more than
25 years’ international experience
in mineral exploration and mine
development. His diverse mineral
industry experience includes gold,
copper, zinc, diamond, lithium and
boron exploration in Australia, Europe,
Africa, North America and South America.
Mr Julian Babarczy
Independent Non-executive
Director
B.Bus, Grad Dip. (Mineral
Exploration Geosciences), CFA
Former: Head of Australian Equities,
Regal Funds Management
Julian Babarczy has over 20 years finance
and investment industry experience, over
two-thirds of which was as a key member
of the investment and leadership team at
Sydney-based Regal Funds Management,
one of Australia’s largest actively managed
and arguably most successful hedge funds.
Julian has broad investment experience
across a range of sectors, with a notable
speciality in natural resources.
Mr Alan Davies
Independent Non-executive
Director
B.Bus (Accounting), LLB, LLM
Former: CEO Energy & Industrial
Minerals, Rio Tinto
Alan Davies has 20 years of experience in
running and leading mining businesses,
most recently as chief executive, Energy &
Minerals with Rio Tinto. He has significant
experience in industrial minerals
businesses including borates where he
led the Rio Tinto Borax business and the
Jadar lithium-boron deposit in Serbia.
Mr Patrick Elliott
Independent Non-executive
Director
B.Comm, MBA Mineral Economics
Former: Head of corporate finance for
Morgan Grenfell Australia Limited
Patrick Elliott is an experienced resources
and industrial sector company director.
In a career spanning over 45 years he
has held senior executive positions with
Consolidated Gold Fields Australia
Limited and Morgan Grenfell Australia
Limited. He then became an early stage
venture capital investor with an emphasis
on resources.
Mr John Hofmeister
Independent Non-executive
Director
BA (Political Science), MA (Political
Science), PhD (Houston), D.Lit
(Kansas State)
Former: President of Shell Oil
Company (USA)
John Hofmeister was the president of Shell
Oil Company (U.S.A.) from 2005 to 2008
and director of human resources. John also
has held executive leadership positions in
General Electric Company, Nortel Network
Corporation and AlliedSignal (now
Honeywell International Inc.).
14
ioneer Annual Report 2020 Senior Executives
Mr Ian Bucknell
Chief Financial Officer & Company
secretary
B.Bus (Accounting), FCPA, GAICD
Former: CFO & Company Secretary AWE
Limited and Drillsearch Energy Limited
Ian Bucknell is responsible for the finance,
investor relations, IT and company
secretarial functions of the company. He
has more than 20 years of international
resource sector experience, most recently
as chief financial officer and company
secretary of AWE Limited.
Mr Ken Coon
Vice President Human Resources
BS.Bus Administration (Human
Resources)
Former: HR VP Shell Downstream
Technologies and Entergy HR Director
Nuclear Division
Ken Coon is responsible for the human
resource function of the company. He has
more than 30 years of human resources
experience holding international and
regional leadership roles with Royal Dutch
Shell’s downstream refining and chemicals
organization and Entergy, a large US Gulf
Coast utility company.
Mr Yoshio Nagai
Vice President Commercial Sales
& Marketing
Former: MD Fenic International Pte Ltd,
Sales VP Rio Tinto
Yoshio Nagai is responsible for the sales
and marketing function of the company.
He has more than 20 years chemical and
mining industry sales and marketing
experience, most recently as Sales Vice
President at the Rio Tinto Group Company
accountable for borates, salt and talc
products, in Asia and the USA.
Mr Matt Weaver
Senior Vice President of
Engineering and Operations
BS Mech Engineering, MBA
Former: Project Manager BHPB, Guinea
Alumina Corp
Matt Weaver is responsible for all
engineering and operational aspects of
the Rhyolite Ridge lithium-boron Project
in Nevada and for delivering the project
through the Definitive Feasibility Study and
project execution and into full commercial
production. He has 30 years international
mining, having worked with BHP, Rio Tinto
and Newmont, and several junior mining
companies.
15
Financial Report
For the year ended 30 June 2020
Table of contents
Directors’ report ..................................................................... 17
Auditor’s independence declaration ...................................... 24
Remuneration report .............................................................. 25
Financial statements ............................................................... 41
Consolidated statement of profit and
loss and other comprehensive income ............................ 41
Consolidated statement
of financial position .......................................................... 42
Consolidated statement
of cashflows ...................................................................... 43
Consolidated statement
of changes in equity ......................................................... 44
Directors’ declaration ............................................................. 70
Independent auditor’s report ................................................. 71
Other information ................................................................... 76
Shareholder and ASX information .......................................... 79
Corporate directory .............................................................. IBC
16
ioneer Annual Report 2020 Directors’ report
Directors’ Report
The directors of ioneer Ltd present their report together with the consolidated financial statements of ioneer Ltd
(‘ioneer’ or the ‘Company’) and its controlled entities (collectively the Group) for the financial year ended 30 June 2020
and the Auditor’s report thereon.
Operating and financial review
The operating and financial review forms part of the Directors’ Report and has been prepared in accordance with
section 299A of the Corporations Act 2001 (Cth). The information provided aims to assist users better understand the
operations and financial position of the Group. To assist users, financial information included in this review contains
non-IFRS financial information.
The principal activity of the Group continues to be the development of the Rhyolite Ridge Lithium-Boron Project
(Project) in Nevada, United States of America.
Highlights of the financial year ended 30 June 2020
•
•
•
The Definitive Feasibility Study (DFS) for Rhyolite Ridge was delivered in April, showing compelling Project
economics with an after-tax NPV of US$1.265 billion, and an unlevered, after tax IRR of 20.8%.
o Confirmed plans for a large, long-life, low-cost operation with an all-in sustaining cash cost to
produce lithium carbonate equivalent at the bottom of the global lithium cost curve.
Total Ore Reserve for Rhyolite Ridge increased 280% to 60.5 million metric tonnes (mt) over the 26-year mine
life.
Significant progress was made on permitting the project:
o
o
The Project Plan of Operations was submitted to the United States Bureau of Land Management.
Key air and water quality permit applications were completed and submitted to relevant US
regulatory bodies.
o Announced funding for a five-year study under a collaboration with the University of Nevada, Reno
following successful results from a Tiehm’s Buckwheat growing trial from seed collected at Rhyolite
Ridge.
•
Key milestones were achieved in sales & marketing:
o
o
Samples of high-quality lithium and boron end-products produced at the Pilot Plant were sent to
thirty potential off-take partners.
Lithium carbonate confirmed to contain exceptionally low levels of impurities, meeting or exceeding
customer specifications, in addition to previously announced high-purity lithium hydroxide.
o Binding boric acid offtake agreement signed with the Dalian Jinma Group; a large diversified private
o
Chinese company focused on boron related products.
Three-year boric acid Distribution and Sales Agreements signed with Kintamani Resources Pte
Limited, and Boron Bazar Limited, covering critical additional territories in Asia.
• On the corporate front:
o
Strategic partner discussions are progressing well with a range of potential strategic funding partners
for Rhyolite Ridge.
o Completion of $40 million fully underwritten institutional placement with cornerstone investment
from Centaurus Capital LP
Experienced finance and investment manager Julian Babarczy joined the board as non-executive
director.
o
Summary of performance and financial position
Year ended 30 June
Mineral Resource: Measured and Indicated
Inferred
Mineral Resource: Total (1)
Total operating cash flows
Investing cash flows
Financing cash flows - equity
Total cash used in the financial year
Net cash
Capitalised exploration
Net assets
Net loss after tax
Unit
mt
mt
mt
A$'000
A$'000
A$,000
A$'000
A$'000
A$,000
A$,000
A$,000
30-Jun-20
127.0
19.5
146.5
(6,773)
(44,354)
38,676
(12,451)
38,268
44,362
130,046
(5,446)
30-Jun-19
130.5
24.0
154.5
(4,923)
(30,401)
563
(34,761)
48,604
33,627
95,656
(941)
% Change
(3%)
(19%)
(5%)
38%
46%
>100%
(64%)
(21%)
32%
36%
>100%
(1) For further detail and Mineral Resources and Ore Reserves refer to Other information set out on page 76.
IONEER LTD ANNUAL REPORT 17
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Directors’ reportRemuneration reportFinancial statementsOther informationShareholder and ASX informationCorporate directory
Directors’ report
Business strategy
Our Purpose - we exist to enable a sustainable world for all.
Our Mission - we responsibly and profitably provide the materials necessary for realising a sustainable planet.
Our Vision - we see a world in which our global population, our environment and all future generations are thriving.
Our Values - we are imaginative, caring, committed and responsible.
ioneer’s business strategy is focused on developing the 100%-owned Rhyolite Ridge Lithium-Boron Project in Nevada,
USA. We believe in an electrified future and the strategic imperative for the USA to develop a domestic battery
materials supply chain. We actively promote the development of this battery materials supply chain and look to be a
thought leader in this space.
Opportunities
The focus of the company is developing Rhyolite Ridge. After successfully delivering this Project, ioneer will pursue
other growth initiatives from its existing portfolio (the current estimated resource is open to the north, south and east
and does not include the north basin tenements) as well as new opportunities where they are value accretive and where
balance sheet capacity exists to support future development.
Material business risks
The following material business risks have been identified as key issues that have the potential to impact the Company’s
performance:
• Health, safety and environmental risks, are of critical importance in ensuring we safely and responsibly build
•
and operate a sustainable business.
Execution of the Project, including meeting schedule, permitting and budget, could be subject to changes in
industry and economic conditions.
• Offtake risk, including volume and price risks associated with the sale of technical grade lithium carbonate and
boric acid, counterparty risk and contract terms. Pricing of lithium is likely to be largely subject to the rate of
uptake in electric vehicles.
• Continuing access to debt and capital markets to fund the Project.
•
Sovereign risk relating to the expected fiscal, tax and regulatory environment in jurisdictions that ioneer does
business.
• Maintaining the company’s social licence to operate by proactively engaging communities, regulators and
other key stakeholders.
• COVID-19 has significantly increased uncertainty in markets.
Impact of COVID-19
COVID-19 delayed the completion and delivery of the Definitive Feasibility Study (‘DFS’) by a month. In response to
COVID-19, the Company revised its forward plans and confirmed it had adequate capital to progress the Project until
the end of 2021. The revised capital plan ensured funding to complete the DFS, the Bureau of Land Management
Environmental Impact Study permitting process and to maintain its core team, including critical contractor personnel,
required to ensure continuity and the rapid re-acceleration of activities. Unfortunately, a small number of redundancies
were made. Travel restrictions have impacted international travel by senior staff and offices were closed for a period with
staff working from home. Most staff continue to work a mix of home and office based hours.
18
IONEER LTD 2020 ANNUAL REPORT 18
Directors’ report continuedioneer Annual Report 2020
Directors qualification and experience
The following persons were directors of ioneer Ltd during the whole of the financial year and up to the date of this report.
Their qualifications and experience are:
Directors’ report
Mr James D Calaway
Chairman
BA (Econ), MA (PP&E)
Mr Bernard Rowe
Managing Director
BAppSc (Geology) (Hons)
James was appointed a director in April 2017 and has served as Chairman since
June 2017.
James was the Non-Executive Chairman of Orocobre Ltd for eight years until his
retirement in July 2016. He led Orocobre from early development to become a
significant producer of lithium carbonate and a member of the ASX 300.
James is currently Chairman Distributed Power Partners Inc, a US international
distributed power development company which is a leader in clustered distributed
solar power development.
He has also been a chair of several other U.S. corporate boards including the
Centre for Houston's Future, and the Houston Independent School District
Foundation.
Bernard was appointed managing director in August 2007. He has more than 25
years’ international experience in mineral exploration and mine development. His
diverse mineral industry experience includes gold, copper, zinc, diamond, lithium
and boron exploration in Australia, Europe, Africa, North America and South
America.
He led the Company’s listing on the ASX in 2007 with a focus on gold and copper
exploration in Nevada and Peru.
In early 2016 Bernard visited a little-known lithium-boron deposit in southern
Nevada – later to be renamed Rhyolite Ridge. He realised the potential opportunity
and quickly secured a 12-month option over the Project to give the Company
sufficient time to fully assess and evaluate the unique and poorly understood
deposit.
Bernard is a member of the Australian Institute of Geoscientists, the Society of
Economic Geologist and the Geological Society of Nevada.
Mr Julian Babarczy
Director
B.Bus (Marketing)
Grad Dip. (Mineral
Exploration Geosciences),
CFA
Julian joined the board as a non-executive director in June 2020.
He has over 20 years finance and investment industry experience, over two-thirds of
which was as a key member of the investment and leadership team at Sydney-
based Regal Funds Management, one of Australia's largest actively managed and
arguably most successful hedge funds. Julian has broad investment experience
across a range of sectors, with a notable speciality in natural resources.
Member of the Nomination
and Remuneration
Committee
He is currently the chief investment officer at a private investment company, Jigsaw
Investments, a non-executive director of Oovvuu a privately held video media
company and chairman of Perpetual Resources Limited, an explorer of silica sands.
Julian is a graduate of the CFA Institute.
Mr Alan Davies
Director
B.Bus (Accounting), LLB,
LLM
Member of the Audit & Risk
Committee
Member of the Nomination
and Remuneration
Committee
Alan joined the board as a non-executive director in May 2017.
He has expertise in running and leading mining businesses with Rio Tinto, most
recently as chief executive, Energy & Minerals. Former roles include chief
executive, Diamonds & Minerals and chief financial officer of Rio Tinto Iron Ore.
Alan held management positions in Australia, London and the US for Rio Tinto's
Iron Ore and Energy businesses, and has run and managed operations in Africa,
Asia, Australia, Europe and North and South America. He is also a former director
Rolls Royce Holdings plc.
He is currently the chief executive officer of the Moxico Resources PLC a Zambian
copper and zinc explorer and developer. He is also Chairman of Trigem DMCC, a
vertically integrated diamond and coloured stone service provider.
Alan is a Fellow of the Institute of Chartered Accountants in Australia.
IONEER LTD 2020 ANNUAL REPORT 19
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Directors’ reportRemuneration reportFinancial statementsOther informationShareholder and ASX informationCorporate directory
Directors’ report
Mr Patrick Elliott
Director
B.Comm, UNSW
MBA Mineral Economics
Chair of the Audit & Risk
Committee
Member of the Nomination
and Remuneration
Committee
Mr John Hofmeister
Director
BA (Political Science),
MA (Political Science), PhD
(Houston),
D.Lit (Kansas State)
Pat joined the board as a non-executive director in 2003.
He is an experienced resources and industrial company director. In a career
spanning over 45 years he has held senior executive positions with Consolidated
Gold Fields Australia Limited and Morgan Grenfell Australia Limited.
Pat is currently executive chairman of Argonaut Resources NL, Cap-XX Limited and
Tamboran Resources Limited. He is also a non-executive director of Kirrama
Resources Limited and Rockfire Resources plc.
Pat was executive chairman of Variscan Mines Limited until his retirement in
September 2018.
John joined the board as a non-executive director in May 2017.
John was the president of Shell Oil Company (U.S.A.) from 2005 to 2008 and
director of human resources. Mr. Hofmeister also has held executive leadership
positions in General Electric Company, Nortel Network Corporation and
AlliedSignal (now Honeywell International Inc.).
Chair of the Nomination and
Remuneration Committee
He founded Citizens for Affordable Energy. He is also a key member of the United
States Energy Security Council.
Member of the Audit & Risk
Committee
John currently serves as non-executive director of Applus+ and was formerly a
non-executive director of Hunting Plc London (United Kingdom).
Company secretary
Mr Ian Bucknell
B.Bus (Accounting), FCPA,
GAICD
Chief Financial Officer and
Company secretary
Ian joined ioneer in November 2018 as chief financial officer and became Company
Secretary in April 2019.
Ian is responsible for the finance, investor relations, IT and company secretarial
functions of the company. He has more than 20 years of international resource
sector experience, most recently as chief financial officer and company secretary of
AWE Limited and previously held the position of chief financial officer of
Drillsearch Energy Limited.
20
IONEER LTD 2020 ANNUAL REPORT 20
Directors’ report continuedioneer Annual Report 2020
Directors’ interests in shares and options
Directors’ interests in shares and options as at 30 June 2020 and at the date of this report are set out in the table below:
Directors’ report
Director
JD Calaway
B Rowe
J Babarczy
A Davies
P Elliott
J Hofmeister
Shares held
Options held
Shares held
Options held
As at 30 June 2020
As at 30 June 2020
At report date
At report date
31,600,000
61,475,918
13,600,000
2,750,152
19,446,722
2,411,231
40,684,507
-
-
1,184,507
31,600,000
61,475,918
13,600,000
2,750,152
684,507
19,446,722
1,184,507
2,411,231
40,684,507
-
-
1,184,507
684,507
1,184,507
Directors’ meetings
Director’s attendance at Directors meetings are shown in the following table:
Board meetings
Audit and risk committee
meetings
Remuneration committee
meetings
Directors
JD Calaway
B Rowe
J Babarczy
A Davies
P Elliott
J Hofmeister
Meetings
eligible to
attend
10
10
1
10
10
10
Meetings
attended
10
10
1
10
10
9
Meetings
eligible to
attend
-
-
-
3
3
3
Meetings
attended
-
-
-
3
3
3
Meetings
eligible to
attend
-
-
1
3
3
3
Meetings
attended
-
-
1
3
3
3
IONEER LTD 2020 ANNUAL REPORT 21
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Directors’ reportRemuneration reportFinancial statementsOther informationShareholder and ASX informationCorporate directory
Directors’ report
Indemnification and insurance of directors and officers
Indemnification
The Company has not, during or since the end of the financial period, in respect of any person who is or has been an
officer of the Company or a related body corporate, indemnified or made any relevant agreement for indemnifying
against a liability incurred as an officer, including costs and expenses in successfully defending legal proceedings.
Insurance premiums
During the financial period the Company has paid premiums to insure each of the directors and officers against liabilities
for costs and expenses incurred by them in defending any legal proceedings arising out of their conduct while acting in
the capacity of director or officer of the Company, other than conduct involving a wilful breach of duty in relation to the
Company. The premiums paid are not disclosed as such disclosure is prohibited under the terms of the contract.
Indemnification of Auditors
To the extent permitted by law, the Company has agreed to indemnify its auditors, Ernst & Young Australia, as part of the
terms of the audit engagement agreement against claims by third parties arising from the audit (for an unspecified
amount). No payment has been made to indemnify Ernst & Young Australia during or since the financial year.
Remuneration report
The remuneration report set on pages 25 to 40 forms part of the Directors report for the year ended 30 June 2020.
Corporate governance statement
Details of the Company’s corporate governance practices are included in the Corporate Governance Statement set out
on the Company’s website.
Dividends
No dividend has been proposed or paid since the start of the year.
Shares – issued and unissued
Issued shares
Unissued shares:
Options
Performance rights (1)
30 June 2020
Number
1,680,202,466
30 June 2019
Number
1,474,983,509
43,738,028
9,586,056
47,430,840
1,391,786
(1) The 2019 LTI Performance rights were proposed to KMPs as 40% time-based and 60% performance based. 1,125,434 performance
rights were granted during the period in relation to the 40% time-based portion. The 60% performance-based awards were not
granted in the period. Whilst the time-based awards were granted, they have not been announced on the ASX pending the issue of
the full award. (refer ASX release dated 15 September 2020).
Since the end of the financial year the following additional shares, options or performance rights have been granted:
•
•
1,954,948 Performance rights have vested and new shares issued.
16,113,484 Performance rights have been granted (including deferred STI, 2019 & 2020 LTI and retention on
employment awards).
Environmental performance
The Group holds exploration licences issued by the relevant government authorities which specify guidelines for
environmental impacts in relation to exploration activities. The licence conditions provide for the full rehabilitation of the
areas of exploration in accordance with regulatory guidelines and standards. There have been no known breaches of the
licence conditions.
22
IONEER LTD 2020 ANNUAL REPORT 22
Directors’ report continuedioneer Annual Report 2020
Directors’ report
Audit and non-audit services
The directors are satisfied that the provision of non-audit services is compatible with the general standard of
independence for auditors imposed by the Corporations Act 2001. There were no non-audit services provided during
the current financial year.
Auditor’s independence declaration
A copy of the auditor’s independence declaration as required under section 307C of the Corporations Act 2001 forms
part of this report and is set out on page 24.
Matters subsequent to the end of the financial period
Other than where stated at Note 9.5 to the Financial Statements, there were at the date of this report no matters or
circumstances which have arisen since 30 June 2020 that have significantly affected or may significantly affect:
•
•
•
the operations of the Company,
the results of those operations, or
the state of affairs of the Company.
Rounding off
The Group is of a kind referred to in ASIC Corporations (rounding in Financial / Directors’ Report) Instrument 2016/191
and in accordance with that Class Order, amounts in the financial statements and directors’ reports have been rounded
off to the nearest thousand dollars, unless otherwise stated.
Signed at Sydney this 17th day of September 2020 in accordance with a resolution of the Directors.
James D Calaway
Executive Chairman
Bernard Rowe
Managing Director
IONEER LTD 2020 ANNUAL REPORT 23
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Directors’ reportRemuneration reportFinancial statementsOther informationShareholder and ASX informationCorporate directory
Auditor’s independence declaration
Ernst & Young
200 George Street
Sydney NSW 2000 Australia
GPO Box 2646 Sydney NSW 2001
Tel: +61 2 9248 5555
Fax: +61 2 9248 5959
ey.com/au
Auditor’s Independence Declaration to the Directors of ioneer Ltd
As lead auditor for the audit of the financial report of ioneer Ltd for the financial year ended 30 June
2020, I declare to the best of my knowledge and belief, there have been:
a) no contraventions of the auditor independence requirements of the Corporations Act 2001 in
relation to the audit; and
b) no contraventions of any applicable code of professional conduct in relation to the audit.
This declaration is in respect of ioneer Ltd and the entities it controlled during the financial year.
Ernst & Young
Scott Nichols
Partner
Sydney
17 September 2020
A member firm of Ernst & Young Global Limited
Liability limited by a scheme approved under Professional Standards Legislation
24
ioneer Annual Report 2020
Remuneration report – audited
Remuneration report – audited
ioneer Ltd
For the year ended 30 June 2020
For the year ended 30 June 2020
Message to shareholders
Dear Shareholder,
This letter seeks to provide introductory comments to this year’s remuneration report and insight as to the thinking of
the Nomination & Remuneration Committee (Committee) in remuneration outcomes.
Financial Year 2020 was a significant year of delivery for ioneer. Most notably the Definitive Feasibility Study (DFS) for
Rhyolite Ridge was delivered in April 2020, which was the culmination of 18 months of engineering effort. In addition,
significant progress was made on permitting the Project, completing extensive bench and pilot scale testwork, signing a
number of offtake agreements for boric acid and in developing funding plans for the Project. These milestones were
achieved in a period of uncertainty caused by COVID-19, where the company was forced to reduce headcount, and
more was expected from fewer people. Within this context, the Committee agreed that the significant achievements of
the team should be recognised and the need to retain and motivate ioneer’s small core team for delivery of future
crucial milestones was critically important.
Our remuneration strategy and practice is to target Key Management Personnel (KMP) at approximately the median
level for comparable businesses of a similar size when objectives are achieved. The standardisation of KMP contracts
was completed during the 2019 financial year.
Changes to the Board and executive
As we progress the Rhyolite Ridge Project through its next stages of business growth, we continue to evaluate the board
and management team to suit the future needs of the Company. As such, during the financial year, Julian Babarczy was
appointed to the board in June 2020 and Ken Coon and Yoshio Nagai were appointed as vice president of human
resources and vice president commercial sales and marketing in July and August 2020, respectively. There were no other
changes to KMP in the period.
Remuneration outcomes for executives
During the year, Willis Towers Watson (WTW), was re-appointed as remuneration consultant to the Committee, aided by
Glenn Gilchrist, an experienced human resource professional with a global background. Based on their review of KMP
remuneration the following outcomes were agreed:
•
•
•
Fixed remuneration – In the financial year, the chief executive officer received an increase in fixed
remuneration of 11%, to bring his remuneration in line with our remuneration strategy. Further amendments
to base salary have been agreed for financial year 2021 based on benchmarking analysis completed.
Short term incentive (STI) annual bonus payments - The chief executive officer, chief financial officer, vice
president human resources, vice president commercial sales and marketing and senior vice president
engineering and operations received awards largely at target of 75%, 50%, 37%, 37% and 60% of base salary
respectively. The awards to the vice president human resources and vice president commercial sales and
marketing were pro-rated for time worked. The senior vice president engineering and operations received an
award of 10% above target to recognise his exceptional efforts in delivering the DFS.
Long term incentive (LTI) annual equity grant awards - The KMP were awarded LTI grants at target. The LTI at
risk award of remuneration for the chief financial officer and senior vice president engineering and operations
were increased from 50% of base salary to 60% of base salary based upon a competitive peer group review.
The Committee and Board believe that these outcomes align our executive remuneration with competitive benchmarks
and will support our transition and growth as a company. Our remuneration policy includes annual performance criteria
and standard review cycles.
Remuneration outcomes for the board
There is no change to non-executive director remuneration or the non-executive director fee pool. During the financial
year, Mr Calaway was paid a ‘special exertion fee’ to compensate him for what was considered a short-term undertaking
of supporting our small management team. With the impact of COVID-19, travel restrictions on Australian based staff
and an extended Project schedule, it became apparent that Mr Calaway’s continued efforts would be required through
financial year 2021 and as such he was appointed an executive of the Company for a 12-month period, effective 1 July
2020.
We will continue to keep shareholders abreast of KMP and non-executive director remuneration policies and payments
in as simple, clear and transparent manner as possible, recognising the importance of these matters to all shareholders
and to our executives and directors. The Board is committed to fair, competitive, effective and responsible remuneration
policies and practices and to fully communicating its decisions for review and voting approval by shareholders, who will
judge our decisions and practices.
John Hofmeister
Chairman, Nomination & Remuneration Committee
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Remuneration report
Key terms used in this report
Act
AGM
ASX
FID
INR
KMP
LTI
Corporations Act 2001 (Cth)
Annual General Meeting
Australian Securities Exchange
Final Investment Decision
ioneer
Key management personnel
Long-term incentive
MD
NED
Option Plan
Rights
Rights Plan
STI
Managing director
Non-executive director
Share Option Plan
Share rights
Performance Rights Plan
Short-term incentive
26
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Remuneration report – audited continuedFor the year ended 30 June 2020ioneer Annual Report 2020
Remuneration report
1. Introduction
The directors of ioneer Ltd (“ioneer” or the “Company”) present the Remuneration Report prepared in accordance with
section 300A of the Corporations Act 2001 (“the Act”) for the consolidated entity for the year ended 30 June 2020.
This Remuneration Report which forms part of the Directors Report outlines the remuneration strategy, framework and
practices adopted by the consolidated entity in accordance with the requirements of the Act and its regulations. This
information has been audited as required by section 308 (3C) of the Act.
This report details remuneration information pertaining to directors and executives who are the ‘Key Management
Personnel’ (“KMP”) of the consolidated entity. KMP are defined as those persons having authority and responsibility for
planning, directing and controlling the activities of the consolidated entity, directly or indirectly, including any director
(whether executive or otherwise) of ioneer.
The following non-executive directors (“NEDs”) and executives have been identified as KMP for the purpose of this
report:
Non-executive directors
James D Calaway (1)
Julian Babarczy
Alan Davies
Patrick Elliott
John Hofmeister
Non-executive chairman
Non-executive director
Non-executive director
Non-executive director
Non-executive director
Appointed
Appointed 5 April 2017
Appointed 1 June 2020
Appointed 23 May 2017
Appointed 30 April 2003
Appointed 23 May 2017
Executive director and executives
Bernard Rowe
Ian Bucknell (2)
Ken Coon
Yoshio Nagai
Matt Weaver
Managing director
Chief financial officer and company secretary
Vice president human resources
Appointed 23 August 2007
Appointed 14 November 2018
Appointed 1 July 2019
Vice president commercial sales and marketing
Appointed 1 August 2019
Senior vice president – engineering and operations
Appointed 28 November 2017
(1) Mr Calaway was appointed an executive on 1 July 2020. For the purposes of the Remuneration Report for financial year 2020 he is
considered a non-executive director.
(2) Mr Bucknell was appointed company secretary on 1 April 2019.
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2. Remuneration governance
Remuneration governance is overseen by the Nomination & Remuneration Committee. The Committee is a committee
of the Board established in accordance with the Company’s constitution and authorised by the Board to assist it in
fulfilling its statutory, fiduciary and regulatory responsibilities.
The ASX Corporate Governance Council’s “Corporate Governance Principles and Recommendations” (ASX
Recommendations) recommend that the Company has formal and rigorous processes for the appointment and
reappointment of directors to the Board. The Committee was established to assist the Board by undertaking the roles
and exercising the responsibilities set out in the Nomination & Remuneration Committee Charter. A copy of this
Charter is available on the Company’s website.
The Committee aims to bring transparency, focus and independent judgment to these roles. The Committee will review
and make recommendations to the Board on matters relevant to these roles and responsibilities, and as required to
satisfy the Corporations Act, ASX Recommendations and ASX Listing Rule requirements relevant to these roles and
responsibilities. The Committee currently comprises the following independent non-executive directors:
John Hofmeister (Chairman);
Julian Babarczy; (1)
•
•
• Alan Davies; and
•
Patrick Elliott.
(1) Julian Babarczy was appointed to the Committee on 17 June 2020.
2.1.
Role
The role of the Committee is defined in the Charter and is to assist and advise the Board on:
Nomination
•
•
•
•
•
•
•
succession planning generally;
induction and continuing professional development programs for directors;
the development and implementation of a process for evaluating the performance of the Board, its
committees and directors;
the process for recruiting a new director, including evaluating the balance of skills, knowledge, experience,
independence and diversity on the Board and, in the light of this evaluation, preparing a description of the
role and capabilities required for a particular appointment;
determining board size and balance of skills as the Company develops and evolves and becomes more
complex as progress is made from project development to full operations;
the appointment and re-election of directors including with consideration to the appropriate director tenure
and length of service for the Company; and
appointment and succession planning for the Managing Director (or such person performing the function of a
chief executive officer) and other senior executives,
with the objective of having a Board of a size and composition conducive to making appropriate decisions, with the
benefit of a variety of perspectives and skills and in the best interests of the Company as a whole.
Remuneration
Policies and practices are designed to:
•
•
•
enable the Company to attract, retain and motivate directors, executives and employees who will create value
for shareholders within an appropriate risk management framework, by providing remuneration packages that
are equitable and externally competitive;
be fair and appropriate having regard to the performance of the Company and the relevant director, executive
or employee and the interests of shareholders; and
comply with relevant legal requirements.
2.2.
Responsibilities
Nomination
The Committee is responsible for:
•
Board size: making recommendations regarding the size of the Board which would most encourage efficient
decision making; current board size range is 6-8; ensuring geographic balance, including directors with
Australia residence;
• Director competencies: making recommendations regarding the necessary and desirable competencies of
•
directors;
Skills matrix: developing a Board skills matrix setting out the mix of skills and diversity that the Board currently
has or is looking to achieve in its membership against the desirable range of skills;
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Remuneration report – audited continuedFor the year ended 30 June 2020ioneer Annual Report 2020
• Director recommendations: developing and reviewing the process for the selection, appointment and re-
Remuneration report
election of directors, and making recommendations to the Board by:
o
evaluating the balance of skills, experience, independence, knowledge and diversity of directors sitting
on the Board; evaluating current needs under the circumstances of the short and long term requirements
of the business as well as changes in strategy, external environment and anticipated terms of current
directors;
in light of this evaluation, preparation of a description of the role and capabilities required for a particular
appointment within the context of shorter and longer term business considerations; and
sourcing candidates from the available market including with the possible assistance of a third-party
provider, and reviewing recommendations from other sources including current directors, advisors,
significant shareholders, management, and industry experts;
assuring the candidates possess both the personal qualities of integrity, courage, curiosity, interpersonal
skills, interest in the business and the industry, business acumen, ability and capacity to contribute and
the appropriate and necessary competencies and skills as described above within the matrix;
reviewing the current diversity represented on the Board with the backdrop of the Company’s Diversity
Policy to assist with the sourcing and targeting of candidates;
interviewing and evaluating candidates along with obtaining appropriate checks and references and
putting forward the candidate for appointment and election as a director to the Chairman, Managing
Director, and full Board;
o
o
o
o
o
o
•
Providing information: providing security holders with material information in the Committee’s possession
relevant to a decision as to whether or not to elect or re-elect a director;
• Assessing performance: implementing a process to evaluate the performance of the chairperson, Board, Board
committees, individual directors and senior executives on an annual basis to support governance
improvement, efficient Board processes and effective decision making and to address issues that may arise
from the review;
• Assessing time commitment: reviewing the time required to be committed by non-executive directors to
properly fulfil their duties to the Company and whether non-executive directors are meeting these
requirements;
• Assessing independence: assisting the Board in assessing the independence of each non-executive director;
•
Succession plans: reviewing Board and senior executive succession plans and processes, including for the
Managing Director and other senior executive positions and being conscious of each director’s tenure, to
maintain an appropriate balance of skills, experience, expertise and diversity; and;
• Governance matters: reviewing and making recommendations in relation to any corporate governance issues
as requested by the Board from time to time.
Remuneration
General
The Committee is responsible for informing itself of market-based, publicly available and relevant competitive
remuneration committee information and developing, reviewing and making recommendations to the Board on:
• Directors’ fees: the Company’s remuneration framework for directors, including, the process by which any pool
•
•
•
•
•
•
of directors’ fees approved by shareholders is allocated to directors;
Senior executives: the remuneration packages to be awarded to senior executives;
Bias: reviewing whether there are any gender or other inappropriate bias in remuneration for directors, senior
executives or other employees;
Policies: the Company’s recruitment, retention and termination policies for the Managing Director and senior
executives and any changes to those policies;
Incentive schemes: incentive schemes, if appropriate, for the Managing Director and senior executives;
Equity-based programs: equity-based remuneration plans, if appropriate, for senior executives and other
employees;
Superannuation and retirement benefits: superannuation and retirement benefit arrangements for directors,
senior executives and other employees; and
• Other perquisites: applying certain other benefits as determined appropriate based upon market and
competitive information.
Incentive schemes and equity-based remuneration
For any incentive schemes or equity-based plans which are adopted, the Committee is responsible for:
Reviewing: reviewing their terms (including any eligibility criteria and performance hurdles);
•
• Administration: overseeing their administration (including compliance with applicable laws that restrict
participants from hedging the economic risk of their security holdings) and disclosing its policy on whether
participants are permitted to enter into transactions (whether through the use of derivatives or otherwise)
which limit the economic risk of participating in the scheme;
Shareholder approval: considering whether shareholder approval is required or desirable for the schemes or
plans and for any changes to them; and
Payments and awards: ensuring that payments and awards of equity are made in accordance with their terms
and any shareholder approval.
•
•
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2.3.
Remuneration advisors
The Committee engaged the services of Willis Towers Watson (WTW), and an experienced HR consultant, Glenn
Gilchrist to support the Vice President HR, Ken Coon in providing remuneration advice. WTW and Glenn Gilchrist
provided analysis and advice on competitive benchmarking and executive remuneration targets and structures for
Australia and the USA. In addition, Watson Mangioni, Mullin, Hoard & Brown LLP and Glenn Gilchrist, were engaged to
provide advice on senior executive contracts as well as several other human resource activities.
The Committee and its advisors are satisfied that the advice provided by each individual party is free from bias from the
KMP to whom the recommendations apply. The fees paid to the individual advisors for this work were as follows:
Willis Towers Watson
Glenn Gilchrist
Mullin Hoard & Brown LLP
Watson Mangioni
Total fees
Year ended
30 June 2020
$
51,013
41,327
12,362
19,185
123,887
30
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Remuneration report
3. Remuneration arrangements
3.1. Managing director and executives
ioneer’s remuneration framework and executive reward strategy provides a mix of fixed and variable remuneration with
a blend of short and long-term incentives. The key elements of the remuneration packages are as follows:
•
•
•
•
Fixed: Annual base salary.
Variable short-term incentive: annual cash bonus.
Variable equity: options and performance rights granted under shareholder approved equity incentive plans
(refer 3.2, Equity Incentive Plans in this Remuneration Report).
Post-employment benefits: superannuation contributions and similar retirement benefits savings for non-
Australian executives.
The ioneer executive compensation strategy provides for fair, competitive remuneration that aligns potential rewards
with the Company’s objectives while being transparent to shareholders. Key remuneration elements are reviewed
annually to determine appropriate awards based upon factors such as individual performance, Company results and
competitive benchmark survey data. The following is a brief description of the approach for each element:
•
Base salary is reviewed annually and adjusted based upon individual performance and competitive
benchmarks that may be reviewed from time to time to ensure competitiveness.
•
• Annual (short-term) cash bonuses are reviewed annually with awards granted based upon individual
performance and Company results. Bonus targets are benchmarked from time to time to ensure
competitiveness. Bonuses may range from 0 to 200% of target. The Board reserves the right to grant bonuses
larger than 200% for exceptional contributions to Company objectives.
Equity (long-term) grants are reviewed annually with a portion of the grants being performance based and a
portion restricted time based. The Board has a current practice of granting a ratio of 60% performance-based
equity rights and 40% restricted time-based equity rights. Typically, equity grants awarded as part of the
Company’s annual review cycle will vest over a 3-year period. Vesting of performance-based grants are
reviewed with the time-based grants at the time of vesting with the size of the vested award to be based upon
the degree to which pre-established objectives were achieved, and the overall value of the vested award
determined by market share price. Performance based equity grants may range between 0 and 200% at time
of vesting based upon achievement of pre-established business targets. Equity targets are benchmarked from
time to time to ensure competitiveness.
3.2. Equity Incentive Plans
The Company has three share schemes in operation:
•
•
•
The Equity Incentive Plan (current);
The Share Option Plan (historic); and
The Performance Rights Plan (historic).
Under these plans ordinary shares have been granted to senior executives, employees and a number of consultants.
Whilst there are a number of options and performance rights on issue under the terms and conditions of previous
schemes, all financial year 2019 and 2020 grants and issues of options or rights have been made under the Equity
Incentive Plan.
Equity Incentive Plan
The Group established an Equity Incentive Plan following the AGM held on 31 October 2018. The purpose of this Equity
Incentive Plan (“the Plan”) is to provide eligible persons the opportunity to participate in the growth and profits of the
Company and to attract, motivate and retain their services to promote the Company’s long-term success.
Key features include:
The Board may at its discretion make invitations to or grant awards to eligible persons.
•
• Award means an option or a performance right to acquire a share in the capital of the Company.
•
Eligible persons include executive directors or executive officers of the Group, employees, contractors or
consultants of the group or any other person.
• A participant may not sell or assign awards.
• Within 30 days after the vesting date in respect of a vested performance right, the Company must either
allocate shares or procure payment to the participant of a cash amount equal to the market price of the shares
which would have otherwise been allocated.
• At any time during the exercise period a participant may exercise any or all of their vested options by paying
the exercise price.
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The following table summarises the key features of the performance rights (PRs) granted under the terms and conditions
of the Equity Incentive plan for the year ended 30 June 2020:
Remuneration report
Performance Rights – Time-based
Year of Grant
Participants
Purpose
Financial year 2020
All executives
Time based PRs were issued for a variety of purposes including:
•
Performance rights at hire are used to attract and retain executives and senior leaders
(retention on employment)
Part payment of 2019 short term incentives (deferred STI)
•
• Make up LTI equity grants for 2017, 2018 not granted
•
LTI equity grant – 2019 (40% time based portion)
Instruments issued
PRs are rights to acquire ordinary shares in the Company for nil consideration, conditional on the
achievement of time-based hurdles (continuing employment).
Vesting
There are various vesting dates. See section 5 of the Remuneration Report for more information.
Generally, the purpose of the PR defines the vesting period:
•
Retention on employment – Agreements with early recruits included vesting in equal
instalments after 12, 24, and 36 months. However, since mid-2019 a standard approach
of vesting after 3 years has been implemented
Deferred STIs – vest in 12 months from the award date
•
• Make up equity grants – vest 36 months after the assumed award date (i.e. 2018 make-
up awards vest 1 July 2021)
Performance Rights – Performance-based
A number of performance based PRs were proposed in financial year 2020 but not granted until after the financial year
due to ongoing work by the Nomination and Remuneration Committee to finalise the performance conditions and to
complete a ‘fair value’ valuation. The table below summarises the key features of the performance-based performance
rights proposed under the terms and conditions of the Equity Incentive plan for the year ended 30 June 2020:
Year of Grant
Participants
Purpose
Instruments issued
Financial year 2020
All executive KMP as at 30 June 2019 (2019 award) and as at 30 June 2020 (2020 award)
LTI equity grants (performance based) – 60% of the annual LTI equity grant is performance based
for all executives.
PRs which are rights to acquire up to 2 ordinary shares in the Company for nil consideration,
conditional on the achievement of pre-determined performance hurdles within defined time
restrictions.
Vesting
3 years from grant
Performance measurement
date
Performance conditions
30 June
The Board will employ discretion in assessing Project results and determining vesting of
performance units; below, at or above targets:
INR share price compared to comparator group (2019 and 2020 awards)
Construction schedule on pace for start-up as stated at FID (2019 award)
•
•
• Major USA lithium producer to market, start-up achieved as stated at FID (2020 award)
•
Top quartile HSE & Community performance (North American Mining Projects) (2019
and 2020 awards)
Project spend within margin established at FID (2019 award)
Final project construction spend within margin established at FID (2020 award)
Start-up production levels within margin established at FID (2020 award)
Recruiting on track for start-up (FID plan) (2019 award)
80% products sold for first 3 years of production (2019 and 2020 awards)
•
•
•
•
•
Options
No options were issued to the KMPs during the financial year ended 2020 (2019: nil) under the equity incentive plan.
Options were issued to non-executive directors under the plan, however. The particulars of the options awarded are included
in section 7 of the Remuneration Report.
Share Option Plan
The Group established a Share Option Plan in 2010 (and reconfirmed it at the 2016 AGM) to assist in the attraction,
retention and motivation of the KMP’s as well as the retention of key consultants. No options and performance rights
were issued in financial year 2020 (2019: nil) under this plan. Key features include:
Full or part time employees or consultants of the Group are eligible to participate.
•
• Options issued pursuant to the plan will be issued free of charge.
• Options cannot be transferred and are not quoted on the ASX.
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Remuneration report
• Options expire 90 days after the participant resigns from the Company. The exercise price of the options, at
grant date, shall be as the directors in their absolute discretion determine, provided the exercise price shall
not be less than the weighted average of the last sale price of the Company’s shares on ASX at the close of
business on each of the 5 business days immediately preceding the date on which the directors resolve to
grant the options.
The directors may limit the total number of options which may be exercised under the plan in any year.
•
A summary of options on issue is set out in note 5.1 of the financial statements.
Performance Rights Plan
In addition to the Share Option Plan discussed above, the Group established the Performance Rights Plan at the 2016
AGM to assist in the attraction, retention and motivation of the Company’s directors, executives, employees and senior
consultants. No options and performance rights were issued in financial year 2020 (2019: nil) under this plan. Key
features include:
•
•
•
•
•
The Board will determine the number of performance rights to be granted to eligible employees (or their
nominees), the vesting conditions and expiry date of the performance rights in its sole discretion.
The performance rights are not transferable unless the Board determines otherwise, or the transfer is required
by law and provided that the transfer complies with the Corporations Act.
Subject to the Corporations Act and the Listing Rules and restrictions on reducing the rights of a holder of
performance rights, the Board will have the power to amend the performance rights plan as it sees fit.
If a vesting condition of a performance right is not achieved by the milestone date, then the performance right
will lapse.
The performance rights will be granted for nil consideration. Upon exercise of the performance rights, shares
will be issued on a one for one basis on the same terms as the Company's existing shares.
A summary of performance rights on issue is set out in note 5.1 of the financial statements.
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3.3. Service agreements
Remuneration report
Managing director
Term
Effective Date
Remuneration
Termination
Executives
Term
Effective date
Remuneration
Termination
Equity at hire
Chief financial officer
Senior vice president
engineering & operations
Vice president human
resources
Vice president commercial
sales & marketing
Open term agreement
A new contract was established effective 1 July 2019
•
•
•
•
•
•
Fixed remuneration (refer section 4.1 of this Remuneration Report)
At risk STI: 75% of Base salary
Actual awards may range from 0 to 200% contingent upon individual and company
performance compared to established targets. The Board reserves the right to grant
bonuses above 200% for truly exceptional contributions to the business
At risk LTI: 80% of Base salary
A portion of equity will be performance based while a portion will be restricted time based
as determined by the Board. Current portions are 60% and 40% respectively. Performance
based awards may range from 0 to 200% based upon achievement of pre-established
targets
By executive: 6 months’ notice
By Company: 6 months’ notice
Open term agreements
New contracts were established effective 1 July 2019
•
•
•
•
•
•
•
•
•
•
•
Fixed remuneration (refer section 4.1 of this Remuneration Report)
At risk STI:
o
o
50% of base salary - chief financial officer and senior vice president engineering &
operations
40% of base salary - vice president human resources and vice president commercial
sales & marketing
Actual awards may range from 0 to 200% contingent upon individual and company
performance compared to established targets. The Board reserves the right to grant
bonuses above 200% for truly exceptional contributions to the business
At risk LTI:
o
o
60% of base salary - chief financial officer and senior vice president engineering &
operations
40% of base salary - vice president human resources and vice president commercial
sales & marketing
A portion of equity will be performance based while a portion will be restricted time based
as determined by the Board. Current portions are 60% and 40% respectively. Performance
based awards may range from 0 to 200% based upon achievement of pre-established targets
By executive: 3 months’ notice
By Company: 6 months’ notice
Participated immediately at 100% of base salary in Equity Incentive Plan, with restricted time-
based rights that vest in equal portions over 3 years from an agreed effective date of 14
November 2018 (date of hire)
Received AUD$100,000 Company equity rights grant with restricted time-based vesting 12
months after 14 November 2018
Participated immediately at 100% of base salary in Equity Incentive Plan, with restricted time-
based rights that vest in equal portions over 3 years from agreed effective date of 27
November 2017 (date of hire). One equity vesting tranche remains
Participated immediately at 40% of base salary in Equity Incentive Plan, with restricted time-
based rights that vest over 3 years from agreed effective date of 1 July 2019 (date of hire)
Participated immediately at 40% of base salary in Equity Incentive Plan, with restricted time-
based rights that vest over 3 years from agreed effective date of 1 August 2019 (date of hire)
34
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Remuneration report
4. Remuneration outcomes of Managing director and executives
4.1.
Remuneration tables
Details of the nature and amount of each element of remuneration of the managing director and each of the named
executives are as follows:
Salary Cash Bonus (1)
Non-
monetary
benefits
Superannuation
and employee
benefits
Performance
rights
Total
Proportion of
Remuneration
that is
performance
based
% of
remuneration
that consists
of
options/rights
2020
Bernard Rowe (2)
Ian Bucknell
Ken Coon
Yoshio Nagai
Matt Weaver
Total
2019
Bernard Rowe
Ian Bucknell
Matt Weaver
Joanna Morbey
Total
428,179
350,000
300,717
320,560
373,972
1,773,427
362,000
224,053
349,455
146,208
1,081,716
$
$
$
-
9,770
15,686
-
-
25,456
-
3,080
-
-
494,619
175,000
55,369
128,224
145,709
998,921
175,500
55,000
88,063
-
318,563
3,080
$
25,000
38,022
-
29,725
84,858
177,604
40,613
21,285
52,311
20,124
134,333
$
-
355,804
43,090
42,165
365,271
806,330
$
947,798
928,596
414,863
520,673
969,810
3,781,739
-
62,466
145,928
-
208,394
578,113
365,884
635,756
166,332
1,746,085
%
52%
57%
24%
33%
53%
48%
30%
15%
14%
0%
18%
%
0%
38%
10%
8%
38%
21%
0%
17%
23%
0%
12%
(1) All KMP had the option to take the 2020 bonus as cash or as a 12-month performance right with a 20% premium provided for
equity. The equity portion of the cash bonuses is excluded from the cash bonus above because they have not been granted until
post year-end.
(2) A number of equity grants announced in the 2019 financial report as part of Bernard Rowe’s remuneration in financial year 2020
require shareholder approval and will be put to members at the 2020 Annual General Meeting. See section 4.4 below for more
detail. Bernard Rowe’s cash bonus includes $300,000 in relation to the 2020 STI award plus an additional amount of $194,619
representing the deferred 2019 STI amount that has been agreed to be paid in cash rather than awarded as equity.
4.2.
Fixed remuneration
As part of the remuneration work undertaken during the financial year, adjustments to base salary were agreed for the
managing director to standardise his base salaries to benchmarked comparatives.
The Nomination & Remuneration Committee approved increases to fixed remuneration for financial year 2020, as shown
below.
Base salary (1)
% Increase
30 June 2020
30 June 2019
Bernard Rowe
Ian Bucknell
Ken Coon
Yoshio Nagai
Matt Weaver
11%
0%
n/a
n/a
0%
A$
401,000
350,000
-
-
-
US$
-
-
225,000
240,000
250,000
A$
362,000
350,000
-
-
-
US$
-
-
-
-
250,000
(1) Note, base salaries are shown in the above table at contract amounts, where KMP have not worked a full year it will not agree to
the Remuneration table in section 4.1 of this report.
4.3.
Short-term performance benefits included in remuneration
The Company’s approach to the granting and vesting of short-term performance benefits is set out above, in section 3,
Remuneration arrangements.
The chief executive officer, chief financial officer, vice president human resources, vice president commercial sales and
marketing and senior vice president engineering and operations received awards largely at target of 75%, 50%, 37%,
37% and 60% of base salary respectively. The awards to the vice president human resources and vice president
commercial sales and marketing were pro-rated for time worked. The senior vice president engineering and operations
received an award 10% above target to recognise his exceptional efforts in delivering the DFS.
Cash bonuses of $998,921 were accrued for KMP for the year ended 30 June 2020 and were paid after balance date
(2019: $318,563).
IONEER LTD 2020 ANNUAL REPORT 35
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Directors’ reportRemuneration reportFinancial statementsOther informationShareholder and ASX informationCorporate directory
Remuneration report
4.4. Analysis of long-term performance benefits included in remuneration
The Company’s approach to the granting of equity awards is set out above, in section 3, Remuneration arrangements.
The KMP were awarded LTI grants at target. The chief financial officer and senior vice president engineering and
operations LTI awards were increased from 50% of base salary to 60% of base salary based upon a competitive peer
group review.
The number of performance rights granted to the executives under the LTI plan is calculated as remuneration at 1 July
[year] x [insert] % / Market Value. The Market Value is the market value of a fully paid ordinary share in the Company,
calculated using a 10 day VWAP, up to and including the date the performance rights performance period commences.
Performance rights
The number and value of rights granted during the current and previous financial year to KMP is detailed below:
Year ended 30
June 2020
Purpose
Retention on employment (1)
Retention on employment (1)
Retention on employment (1)
2019 LTI Grant - time based (2)
Deferred STI 2019
Retention on employment
Retention on employment
Make-up LTI grant 2018
2019 LTI Grant - time based (2)
Deferred STI 2019
Vesting
period
(months
)
12
24
36
36
12
36
36
24
36
12
Grant date
Vesting
Date
Number
8/08/2019
8/08/2019
8/08/2019
8/08/2019
8/08/2019
14/11/2019
14/11/2020
14/11/2021
1/07/2022
1/07/2020
1/07/2019
1/07/2022
1/08/2019
1/08/2022
8/08/2019
8/08/2019
8/08/2019
1/07/2021
1/07/2022
1/07/2020
244,382
244,378
244,378
517,751
488,166
1,739,055
956,145
956,145
741,120
741,120
1,519,208
607,683
796,787
2,923,678
6,359,998
Market
value
per
right $
0.2387
0.2387
0.2387
0.1352
0.1352
0.1352
0.1862
0.1352
0.1352
0.1352
Award
Value (3)
$
58,334
58,333
58,333
70,000
66,000
311,000
129,271
129,271
137,996
137,996
205,397
82,159
107,726
395,281
973,548
Ian Bucknell
Sub total
Ken Coon
Sub total
Yoshio Nagai
Sub total
Matt Weaver
Sub total
Total
Year ended 30
June 2019
Ian Bucknell
Total
Retention on employment
12
14/11/2018
14/11/2019
418,936
418,936
100,000
100,000
0.2387
(1) Whilst the vesting period commences 14 November 2018, the grant date is 8 August 2019, being the date terms were finalised.
These awards represent 50% of entitlement due to an administrative error. The balance awarded post year-end (refer table below)
(2) The 2019 LTI performance rights were proposed to KMPs as 40% time based and 60% performance-based awards. The
performance-based awards were not granted in the period. Whilst the time-based awards were granted, they have not been
announced on the ASX pending the issue of the full award (refer ASX release dated 15 September 2020).
(3) The fair value of performance rights is determined at the time of grant per AASB 2. Refer note 7.3.
In addition to the above performance rights granted in the period, a number of other performance rights were awarded
but not granted in the period as they require either shareholder approval in relation to awards to the managing director
or pending finalisation of the performance hurdles. It is anticipated that these grants will be made in financial year 2021
post the AGM.
The number and value of rights proposed but not granted during the current financial year to KMP is detailed below:
Purpose
Bernard Rowe
Ian Bucknell
Make-up equity grant 2018 (1)
2019 LTI Grant - time based (1)
2019 LTI Grant - performance based (1)
Retention on employment (3)
Retention on employment (3)
Retention on employment (3)
2019 LTI Grant - performance based (3)
Matt Weaver
2019 LTI Grant - performance based (3)
Vesting
period
(months)
Vesting
date
Number Market
Value $
24
36
36
12
24
36
36
36
1/07/2021
1/07/2022
1/07/2022
14/11/2019
14/11/2020
14/11/2021
1/07/2022
2,766,272
1,106,509
1,659,763
244,382
244,378
244,378
776,627
374,000
149,600
224,400
58,334
58,333
58,333
105,000
1/07/2022
899,736
121,644
Market
value per
right $
0.1352
0.1352
0.1352
0.2387
0.2387
0.2387
0.1352
0.1352
(1) Awards to Bernard Rowe are subject to shareholder approval at the 2020 AGM.
(2) An additional 2017 Make-up equity grant with a fair value of $374,000, now past the Board’s proposed vesting date of 1 July
2020, is to be granted to Bernard Rowe as 2,766,272 shares, subject to shareholder approval at the 2020 AGM.
(3) Refer ASX release dated 15 September 2020.
IONEER LTD 2020 ANNUAL REPORT 36
36
Remuneration report – audited continuedFor the year ended 30 June 2020ioneer Annual Report 2020
Remuneration report
5. Interests held by managing director and senior executives
Movement in interest in equity
After the financial year end, the Board has agreed to put minimum share ownership positions in place for the managing
director and senior executives.
Ordinary shares
2020
Bernard Rowe
Ian Bucknell
Matt Weaver (1)
2019
Bernard Rowe
Joanna Morbey (2)
Matt Weaver
Balance at the start of
the year
Acquired
Disposed
Other
Balance at the
end of the year
61,475,918
-
673,526
62,149,444
61,475,918
19,606,000
187,100
81,269,018
-
663,318
140,105
803,423
-
-
486,426
486,426
-
-
-
-
-
-
-
-
-
(250,000)
-
(250,000)
-
(19,356,000)
-
(19,356,000)
61,475,918
663,318
813,631
62,952,867
61,475,918
-
673,526
62,149,444
(1) Acquired shares are shown net of US taxes remitted on behalf of the employee at date of vesting.
(2)
Joanna Morbey resigned from the Company effective 1 April 2019.
Movement in performance rights
Year ended 30 June
Vesting Date
Balance at
the start of
the year
Number rights
granted
Vested
Balance at the
end of the
year
2020
Ian Bucknell - retention on employment
Ian Bucknell - retention on employment
Ian Bucknell - retention on employment
Ian Bucknell - retention on employment
Ian Bucknell - 2019 STI
Ian Bucknell - 2019 LTI (2)
Ken Coon - retention on employment
Yoshio Nagai - retention on employment
Matt Weaver (1) - retention on employment
Matt Weaver (1) - retention on employment
Matt Weaver - 2019 STI
Matt Weaver - catch up LTIs
Matt Weaver - 2019 LTI (2)
Total
2019
Ian Bucknell - retention on employment
Matt Weaver (1) - retention on employment
Matt Weaver (1) - retention on employment
Matt Weaver (1) - retention on employment
Total
14/11/2019
14/11/2019
14/11/2020
14/11/2021
1/07/2020
1/07/2022
1/07/2022
1/08/2022
27/11/2019
27/11/2020
1/07/2020
1/07/2021
1/07/2022
14/11/2019
27/11/2018
27/11/2019
27/11/2020
418,936
-
-
-
-
-
-
-
486,425
486,425
-
-
-
1,391,786
-
486,426
486,425
486,425
-
244,382
244,378
244,378
488,166
517,751
956,145
741,120
-
-
796,787
1,519,208
607,683
6,359,998
(418,936)
(244,382)
-
-
-
-
-
-
(486,425)
-
-
-
-
(1,149,743)
418,936
-
-
(486,426)
-
-
-
-
-
-
244,378
244,378
488,166
517,751
956,145
741,120
-
486,425
796,787
1,519,208
607,683
6,602,041
418,936
-
486,425
486,425
1,459,276
418,936
(486,426)
1,391,786
Issued under the 2016 Performance Rights Plan as described in section 3.2 of this Remuneration report.
(1)
(2) The 2019 LTI performance rights were proposed to KMPs as 40% time based and 60% performance-based awards. The
performance-based awards were not granted in the period. Whilst the time-based awards were granted, they have not been
announced on the ASX pending the issue of the full award (refer ASX release dated 15 September 2020).
(3) All other performance rights are issued under the 2018 Equity Incentive Plan as described in section 3.2 of this Remuneration
report.
IONEER LTD 2020 ANNUAL REPORT 37
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Directors’ reportRemuneration reportFinancial statementsOther informationShareholder and ASX informationCorporate directory
Remuneration report
6. Remuneration outcomes of non-executive directors
Non-executive directors
Total remuneration for all non-executive directors, last voted upon by shareholders at the 2017 Annual General Meeting
of the Company, is not to exceed $1,000,000 per annum, inclusive of superannuation (excluding special exertion fees).
This total pool enables the Company in the future, if required, to provide for:
• Adequate financial incentives, commensurate with the market to attract and retain suitably qualified and
experienced directors to replace existing non-executive directors;
• Appropriate arrangements to be put in place to ensure a smooth transition on replacement of directors,
including a period of overlap if required; and
Increases in non-executive directors in the future should it be considered appropriate.
•
Total remuneration paid to non-executive directors in the financial year was $651,562 (2019: $547,674) in addition
$411,606 was paid as special exertion fees to James Calaway. The non-executive director fees included $180,000 paid in
the form of options. The board believes that providing remuneration to directors in the form of options in consideration
for their services as directors more effectively aligns the interests of directors with those of shareholders, by giving
directors an opportunity to share in the success of the company. In addition, given the pre-production stage of the
Project, it conserves cash.
Directors are also entitled to be paid reasonable travelling, accommodation and other expenses incurred as a
consequence of their attendance at Board meetings and otherwise in the execution of their duties as directors. The
Chair of the Audit & Risk Committee and the Chair of the Nomination & Remuneration Committee receive an additional
$7,276 (USD5,000) per annum to reflect the time spent in managing the Committees.
The Board has determined that there will be no increase in fees payable to non-executive directors for the financial year
ending 30 June 2021.
The board has determined to put to shareholders at the 2020 Annual General Meeting, that non-executive directors
receive $45,000 in options of the Company in lieu of receipt of directors’ fees in cash.
Special exertion fee
During the financial year, from August 2019 to June 2020, Mr Calaway was paid a ‘special exertion fee’ of US$25,000 per
month to compensate him for what was considered a short-term undertaking of supporting our small management team
in sales and marketing efforts, the delivery and marketing of the DFS and activities associated with funding the Project
and related strategic partnering discussions. With the impact of COVID-19, travel restrictions on Australian based staff
and an extended Project schedule, it became apparent that Mr Calaway’s continued efforts would be required through
financial year 2021 and as such he was appointed an executive of the Company for a 12-month period, effective 1 July
2020. He will continue to receive US$25,000 per month for this work in addition to his usual chairman fees.
Details of the nature and amount of each element of the remuneration of each of the non-executive directors of ioneer
Ltd paid during the year ended 30 June 2020 are set out in the following table.
Fees (1)
Non-
monetary
benefits
Superannuation
Options
Special
exertion
(2)
Total
2020
James D Calaway
Julian Babarczy (3)
Alan Davies
Patrick Elliott
John Hofmeister
Total
2019
James D Calaway
Alan Davies
Patrick Elliott
John Hofmeister
Total
$
225,725
5,520
75,255
82,531
82,531
471,562
213,837
71,279
71,279
71,279
427,674
$
-
-
-
-
-
-
-
-
-
-
-
$
-
-
-
-
-
-
-
-
-
-
-
$
$
$
45,000
-
45,000
45,000
45,000
180,000
30,000
30,000
30,000
30,000
120,000
411,606
-
-
-
-
411,606
-
-
-
-
-
682,331
5,520
120,255
127,531
127,531
1,063,168
243,837
101,279
101,279
101,279
547,674
% of
remuneration
that consists
of
options/rights
%
7%
0%
37%
35%
35%
17%
12%
30%
30%
30%
22%
(1) Directors fees are set in USD with the chairman fees being US$150,000, non-executive directors US$50,000, plus US$5,000 for each
of the chairs of the board committees.
James Calaway has been paid US$25,000 per month as a special exertion fee from 1 August 2019 to 30 June 2020.
Julian Babarczy was appointed to the Board effective 1 June 2020.
(2)
(3)
IONEER LTD 2020 ANNUAL REPORT 38
38
Remuneration report – audited continuedFor the year ended 30 June 2020ioneer Annual Report 2020
Remuneration report
7. Interests held by non-executive directors
Movement in equity
The board has no approved minimum shareholding guidelines for non-executive directors at the date of this report.
However, generally non-executive directors have appropriate shareholdings and the board will continue to monitor
investor expectation in this regard.
Ordinary shares
2020
James D Calaway
Julian Babarczy (1)
Alan Davies
Patrick Elliott
John Hofmeister
2019
James D Calaway
Alan Davies
Patrick Elliott
John Hofmeister
Balance at the start of
the year
Acquired
Disposed
Other
Balance at the
end of the year
31,600,000
-
2,365,898
19,446,722
1,461,231
54,873,851
31,600,000
1,997,298
19,446,722
310,000
53,354,020
-
-
384,254
-
950,000
1,334,254
-
368,600
-
1,151,231
1,519,831
-
-
-
-
-
-
-
-
-
-
-
-
13,600,000
-
-
-
13,600,000
-
-
-
-
-
31,600,000
13,600,000
2,750,152
19,446,722
2,411,231
69,808,105
31,600,000
2,365,898
19,446,722
1,461,231
54,873,851
(1)
Julian Babarczy was appointed to the Board effective 1 June 2020 and held these shares at the date of appointment.
Movement in performance rights
There are no performance rights on issue for non-executive directors
Options
The following options were issued during the financial year.
Participants
All non-executive directors as at 30 June 2019
Instruments issued
Options issued at an exercise price equal to the VWAP for the Company’s shares over the 10
trading days immediately before the date of the 2019 AGM.
Fair value
Date of grant
Vesting
Expiry date
$45,000
14 November 2019
1 year from the date of grant – 14 November 2020
5 years from the date of grant - 14 November 2024
IONEER LTD 2020 ANNUAL REPORT 39
39
Directors’ reportRemuneration reportFinancial statementsOther informationShareholder and ASX informationCorporate directory
Remuneration report
Movement in options
Year ended 30
June 2020
Vesting
Date
Expiry
Date
Balance at
beginning of
financial year
Granted as
remuneration
(1)
Exercised Exercise
price
Amount
paid
Balance as at
end of
financial year
James D Calaway
Sub total
Julian Babarczy
Sub total
Alan Davies
Sub total
Patrick Elliott
Sub total
John Hofmeister
Sub total
Total
13/04/17
13/04/17
13/04/17
09/11/19
14/11/20
13/04/22
13/04/22
13/04/22
09/11/23
14/11/24
23/05/18
23/05/19
23/05/20
09/11/19
14/11/20
23/05/22
23/05/22
23/05/22
09/11/23
14/11/24
09/11/19
14/11/20
09/11/23
14/11/24
23/05/18
23/05/19
23/05/20
09/11/19
14/11/20
23/05/22
23/05/22
23/05/22
09/11/23
14/11/24
Number
16,000,000
12,000,000
12,000,000
357,710
-
40,357,710
-
-
200,000
200,000
100,000
357,710
-
857,710
357,710
-
357,710
200,000
200,000
100,000
357,710
-
857,710
42,430,840
Number
-
-
-
-
326,797
326,797
-
-
-
-
-
-
326,797
326,797
-
326,797
326,797
-
-
-
-
326,797
326,797
1,307,188
$
0.150
0.200
0.250
0.242
0.243
-
-
0.200
0.200
0.200
0.242
0.243
0.024
0.243
0.200
0.200
0.200
0.242
0.243
Number
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
$
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Number
16,000,000
12,000,000
12,000,000
357,710
326,797
40,684,507
-
-
200,000
200,000
100,000
357,710
326,797
1,184,507
357,710
326,797
684,507
200,000
200,000
100,000
357,710
326,797
1,184,507
43,738,028
Year ended 30
June 2019
Vesting
Date
Expiry
Date
Balance at
beginning of
financial year
Granted as
remuneration
(1)
Exercised Exercise
price
Amount
paid
Balance as at
end of
financial year
James D Calaway
Sub total
Alan Davies
Sub total
Patrick Elliott
Sub total
John Hofmeister
Sub total
Total
13/04/17
13/04/17
13/04/17
09/11/19
23/05/18
23/05/19
23/05/20
09/11/19
13/04/22
13/04/22
13/04/22
09/11/23
23/05/22
23/05/22
23/05/22
09/11/23
09/11/19
09/11/23
23/05/18
23/05/19
23/05/20
09/11/19
23/05/22
23/05/22
23/05/22
09/11/23
Number
16,000,000
12,000,000
12,000,000
-
40,000,000
200,000
200,000
100,000
-
500,000
-
-
200,000
200,000
100,000
-
500,000
41,000,000
Number
-
-
-
357,710
357,710
-
-
-
357,710
357,710
357,710
357,710
-
-
-
357,710
357,710
1,430,840
$
0.150
0.200
0.250
0.242
0.200
0.200
0.200
0.242
0.024
0.200
0.200
0.200
0.242
Number
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
$
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Number
16,000,000
12,000,000
12,000,000
357,710
40,357,710
200,000
200,000
100,000
357,710
857,710
357,710
357,710
200,000
200,000
100,000
357,710
857,710
42,430,840
(1)
These options and those issued in 2019, were issued under the Equity Incentive Plan established at the 2018 AGM. All other options were
issued under the previous Share Option Plan which was initially established in 2010 and reconfirmed at the 2016 AGM. Refer to section 3.2 of
this remuneration report for further details.
40
IONEER LTD 2020 ANNUAL REPORT 40
Remuneration report – audited continuedFor the year ended 30 June 2020ioneer Annual Report 2020
Consolidated statement of profit and
Consolidated statement of profit and loss and other comprehensive
income
loss and other comprehensive income
For the year ended 30 June 2020
For the year ended 30 June 2020
Exploration expenditure written off
Other income
Employee benefits expensed
Other expenses
Results from operating activities
Finance income
Finance costs
Net finance income
Loss before tax
Income tax expense
Loss for the year
Loss attributable to equity holders of the company
Items that may be reclassified subsequently to profit and loss
Foreign currency translation difference on foreign operations
Other comprehensive income (net of tax)
Total comprehensive profit / (loss) for the year
Total comprehensive income / (loss) attributable to the owners of the
company
Earnings per share
Basic loss per ordinary share
Diluted loss per ordinary share
Note
4.5
2.2
7.1
2.3
2.4
2.4
2.4
3.1
2.5
2.5
2020
A$'000
(81)
138
(5,063)
(3,250)
(8,256)
2,838
(28)
2,810
(5,446)
-
(5,446)
(5,446)
(175)
(175)
(5,621)
(5,621)
2020
Cents
(0.34)
(0.34)
2019
A$'000
(177)
-
(1,956)
(3,227)
(5,360)
4,426
(7)
4,419
(941)
-
(941)
(941)
1,566
1,566
625
625
2019
Cents
(0.06)
(0.06)
The consolidated statement of profit and loss and other comprehensive income should be read in conjunction with the
accompanying notes.
IONEER LTD 2020 ANNUAL REPORT 41
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Directors’ reportRemuneration reportFinancial statementsOther informationShareholder and ASX informationCorporate directory
Consolidated statement of financial position
As at 30 June 2020
Current assets
Cash assets
Receivables
Total current assets
Non-current assets
Receivables
Plant and equipment
Right of use asset
Exploration and evaluation expenditure
Total non-current assets
Total assets
Current liabilities
Payables
Provisions
Total current liabilities
Non-Current liabilities
Payables - non-current
Total Non-current liabilities
Total liabilities
Net assets
Equity
Contributed equity
Reserves
Accumulated losses
Total equity
Note
4.1
4.2
4.2
4.3
4.4
4.5
4.6
4.7
4.6
5.1
5.2
2020
A$'000
38,268
58
38,326
337
9
322
94,824
95,492
133,818
3,097
271
3,368
404
404
3,772
130,046
153,290
9,837
(33,081)
130,046
2019
A$'000
48,604
319
48,923
211
41
-
49,366
49,619
98,541
2,718
167
2,886
-
-
2,886
95,656
113,013
10,277
(27,635)
95,656
The consolidated statement of financial position should be read in conjunction with the accompanying notes.
42
IONEER LTD 2020 ANNUAL REPORT 42
Consolidated statement of financial positionAs at 30 June 2020ioneer Annual Report 2020
Consolidated statement of cashflows
For the year ended 30 June 2020
Cash flows from operating activities
Payment to suppliers and employees
Interest and other finance costs paid
Net cash flows used in operating activities
Cash flows from investing activities
Expenditure on mining exploration
Purchase of equipment
Interest received
Net cash flows used in investing activities
Cash flows from financing activities
Proceeds from the issue of shares
Proceeds from exercise of options
Equity raising expenses
Payments of lease liability
Net cash flows received from financing activities
Net increase (decrease) in cash held
Cash at the beginning of the financial year
Effect of exchange rate fluctuations on balances of cash held in USD
Closing cash carried forward
Note
4.1
4.3
5.1
5.1
5.1
4.1
2020
A$'000
(6,745)
(28)
(6,773)
(45,080)
(21)
747
(44,354)
40,000
578
(1,799)
(103)
38,676
(12,451)
48,604
2,115
38,268
2019
A$'000
(4,923)
(4,923)
(32,063)
(48)
1,710
(30,401)
-
688
(125)
-
563
(34,761)
80,539
2,826
48,604
The consolidated statement of cash flows should be read in conjunction with the accompanying notes.
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Consolidated statement of cash flowsFor the year ended 30 June 2020Directors’ reportRemuneration reportFinancial statementsOther informationShareholder and ASX informationCorporate directory
Consolidated statement of changes in equity
For the year ended 30 June 2020
Issued
capital
Note
A$'000
Foreign
currency
translation
reserve
A$'000
Equity
compensation
reserve
Accumulated
losses
Total
equity
A$'000
A$'000
A$'000
8,383
(26,694)
94,140
As at 1 July 2018
112,451
Loss for the year ended 30 June 2019
Other comprehensive income
Foreign currency translation differences on
foreign operations
Total other comprehensive income
Total comprehensive income for the year
Issue of share capital
Share- based payments
Share issue costs
As at 30 June 2019
-
-
-
-
5.1
5.2
5.1
687
-
(125)
113,013
-
-
1,566
1,566
1,566
-
-
-
1,566
-
-
-
-
-
328
-
8,711
As at 1 July 2019
113,013
1,566
8,711
Loss for the year ended 30 June 2020
Other comprehensive income
Foreign currency translation differences on
foreign operations
Total other comprehensive income
Total comprehensive income for the year
Issue of share capital
Ordinary shares cash
Proceeds from unlisted options exercised
Share- based payments
Share Based payments expensed/capitalised
Fair value of unlisted options exercised
Fair value of performance rights vested
Share issue costs
Transactions with owners in their capacity as
owners
-
-
-
-
40,000
578
-
1,076
422
(1,799)
5.1
5.1
5.2
5.2
5.2
5.1
-
(175)
(175)
(175)
-
-
-
-
-
-
-
-
-
-
-
-
1,233
(1,076)
(422)
-
(941)
(941)
-
-
(941)
-
-
-
1,566
1,566
625
687
328
(125)
(27,635)
95,655
(27,635)
(5,446)
95,655
(5,446)
-
-
(175)
(175)
(5,446)
(5,621)
-
-
-
-
-
-
40,000
578
1,233
-
-
(1,799)
-
As at 30 June 2020
153,290
1,391
8,446
(33,081)
130,047
The consolidated statement of changes in equity should be read in conjunction with the accompanying notes.
44
IONEER LTD 2020 ANNUAL REPORT 44
Consolidated statement of changes in equityFor the year ended 30 June 2020ioneer Annual Report 2020
Notes to and forming part of the
financial statements
Notes to and forming part of the financial statements
Section 1. Basis of preparation
1.1. Reporting entity
The financial report of ioneer Ltd for the year ended 30 June 2020 was authorised for issue in accordance with a
resolution of the Directors on 17 September 2020.
ioneer Ltd is a for profit company limited by shares and incorporated in Australia whose shares are publicly traded on
the Australian Securities Exchange under the ticker code “INR”. The registered office of the Company is suite 5.03, 140
Arthur Street, North Sydney, NSW 2060 Australia.
The Company is principally engaged in the development of the Rhyolite Ridge lithium-boron deposit in the state of
Nevada, United States of America. Further information about the nature of the Group’s operations and activities is
provided in the directors’ report. Information on the group structure is set out in Section 8 of this report and information
on other related party disclosures of the Group is provided in Section 9.
1.2. Basis of preparation
•
•
•
•
•
•
•
The financial report is a general-purpose financial report, which has been prepared in accordance with
Australian Accounting Standards and Interpretations issued by the Australian Accounting Standards Board
('AASB') and the Corporations Act 2001, as appropriate for for-profit oriented entities.
These financial statements comply with International Financial Reporting Standards (IFRS) as issued by the
International Accounting Standards Board ('IASB'), including new or amended accounting standards effective
for reporting periods beginning 1 July 2019.
Unless otherwise stated, the accounting policies disclosed have been consistently applied.
The financial report has been prepared on a historical cost basis.
The financial statements have been presented in Australian dollars which is the parent entity’s functional
currency.
The financial statements have been prepared on the going concern basis which assumes the company and
consolidated entity will have sufficient cash to pay its debts as and when they become payable for a period of
at least 12 months from the date the financial report was authorised for issue.
The group is of a kind referred to in ASIC Corporations (Rounding in Financial / Directors Reports)
Instrument 2016/191, and as such amounts presented in the financial and directors have been rounded to the
nearest $1,000 (where rounding is permitted), unless otherwise stated.
1.3. New and amended accounting standards and interpretations
The Group applies, for the first time, AASB 16 Leases. The nature and effect of these changes are disclosed below.
The following standards and interpretations which became effective and were applied for the first time during the year
ended 30 June 2020 were assessed to have no material impact on the Group’s consolidated financial statements and
disclosures:
AASB interpretation 23 –
Uncertainty over income tax
treatments
Clarification on accounting income tax treatments that have yet to be accepted by
tax authorities.
Several other standard amendments and interpretations were applicable for the first time from 1 July 2019, but were
not relevant to the Group and does not impact the Group’s consolidated financial statements.
The Group has not early adopted any other standard, interpretation or amendment that has been issued but is not yet
effective.
AASB 16 Leases
AASB 16 supersedes AASB 117 Leases, IFRIC 4 Determining whether an Arrangement contains a Lease, SIC-15
Operating Leases-Incentives and SIC-27 Evaluating the Substance of Transactions Involving the Legal Form of a Lease.
The standard sets out the principles for the recognition, measurement, presentation and disclosure of leases and
requires lessees to account for most leases under a single on-balance sheet model.
The Group adopted AASB 16 using the modified retrospective method of adoption with the date of initial application of
1 July 2019. Under this method, the standard is applied retrospectively with the cumulative effect of initially applying the
standard recognised at the date of initial application. The Group elected to use the transition practical expedient
IONEER LTD 2020 ANNUAL REPORT 45
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Directors’ reportRemuneration reportFinancial statementsOther informationShareholder and ASX informationCorporate directory
allowing the standard to be applied only to contracts that were previously identified as leases applying AASB 117 and
IFRIC 4 at the date of initial application. The Group also elected to use the recognition exemptions for lease contracts
that, at the commencement date, have a lease term of 12 months or less and do not contain a purchase option (‘short-
term leases’), and lease contracts for which the underlying asset is of low value (‘low-value assets’).
a) Nature of the effect of adoption of AASB 16
The Group has lease contracts for various rented offices. Before the adoption of AASB 16, the Group classified each of
its leases (as lessee) at the inception date as either a finance lease or an operating lease. All leases were classified as
operating leases as the risks and rewards incidental to ownership of the leased asset had not passed to the Group. As an
operating lease, the leased property was not capitalised, and the lease payments were recognised as rent expense in
profit or loss on a straight-line basis over the lease term. Any prepaid rent and accrued rent were recognised under
Prepayments and Trade and other payables, respectively.
Upon adoption of AASB 16, the Group applied a single recognition and measurement approach for all leases, except
for short-term leases and leases of low-value assets. The standard provides specific transition requirements and practical
expedients, which has been applied by the Group.
The Group recognised right-of-use assets and lease liabilities for those leases previously classified as operating leases,
except for short-term leases and leases of low-value assets. The right-of-use assets were recognised based on the
amount equal to the lease liabilities, adjusted for any related prepaid and accrued lease payments previously
recognised. Lease liabilities were recognised based on the present value of the remaining lease payments, discounted
using the incremental borrowing rate at the date of initial application.
The Group also applied the available practical expedients wherein it:
•
•
•
•
•
Used a single discount rate to a portfolio of leases with reasonably similar characteristics
Relied on its assessment of whether leases are onerous immediately before the date of initial application
Applied the short-term leases exemptions to leases with lease term that ends within 12 months at the date of initial
application
Excluded the initial direct costs from the measurement of the right-of-use asset at the date of initial application
Used hindsight in determining the lease term where the contract contains options to extend or terminate the lease
b) Amounts recognised in the statement of financial position and profit or loss
The effect of adopting AASB 16, is as follows:
Impact on consolidated statement of financial position
(Increase/(decrease))
Assets
Right of use asset
Total Assets
Liabilities
Payables - lease liabilities
Total Liabilities
Equity
Retained Losses
Total Equity
Impact of consolidated statement of profit and loss (increase/(decrease))
Finance expense - lease interest
General and administration expenses
Loss for the period
30 June
2020
$’000
30 June
2019
$’000
322
322
333
333
(11)
(11)
7
4
11
-
-
-
-
-
-
-
-
-
The Group recognised rent expense from short-term leases of $92,000 for the twelve months ended 30 June 2020.
46
IONEER LTD 2020 ANNUAL REPORT 46
Notes to and forming part of the financial statements continuedioneer Annual Report 2020
1.4. Basis of consolidation
Controlled entities
Controlled entities are entities controlled by the Company. Control exists when the Company has the power, directly or
indirectly to govern the financial and operating policies of an entity so as to obtain benefits from its operations. The
financial statements of controlled entities are included in the consolidated financial statements from the date control
commences until the date that control ceases. With the exception of the wind up of three Canadian entities during the
financial year there has been no change in the control of any subsidiaries during the financial period. All subsidiaries are
100% owned by the Company (2019: 100%).
Transactions eliminated on consolidation
All inter-company balances and transactions, including unrealised profits arising from intra-group transactions, have
been eliminated in full.
Accounting polices
The financial statements of subsidiaries are prepared for the same reporting period as the parent company, using
consistent accounting policies.
1.5. Critical accounting estimates and judgements
The preparation of these financial statements in conformity with Australian Accounting Standards has required
management to make judgements, estimates and assumptions which impact the application of policies and reported
amounts of assets and liabilities, income and expenses. These estimates and associated assumptions are based on
historical knowledge and various other factors that are believed to be reasonable in the circumstance. Actual results
may differ from these estimates.
Estimates and underlying assumptions are reviewed regularly and revisions to accounting estimates are reviewed in the
period in which the estimate is revised. The most significant estimates and assumptions which have a significant risk of
causing material adjustment to the carrying amounts of assets and liabilities within the next financial year relate to:
Reserve estimates
Reserves are estimates of the amount of product that can be economically and legally extracted, processed and sold
from the Groups properties under current and foreseeable economic conditions. The group determines and reports
reserves under the standards incorporated in the Australian Code for Reporting Exploration Results, Mineral Resources
and Ore Reserves, 2012 edition (the JORC code).
The determination of ore reserves includes estimates and assumptions about a range of geological, technical and
economic factors including quantities, grades, production techniques, recovery rates, commodity prices and exchange
rates. Change in ore reserve impact the assessment of recoverability of exploration and evaluation assets.
Estimating the quantity and /or grade of reserves requires the size, shape and depth of ore to be determined by
analysing geological data. This process may require complex and difficult judgements to interpret the data. Additional
information about the Group’s Reserves and Resources is set out on page 76.
Exploration and evaluation assets
The Group’s policy for exploration and evaluation expenditure is set out in note 4.5. The application of this policy
requires certain judgements, estimates and assumptions as to the future events and circumstances, in particular the
assessment of whether economic quantities of reserves will be found. Any such estimates and assumptions may change
as new information becomes available. If, after capitalisation of expenditure under the policy, it is concluded that the
capitalised expenditure will not be recovered by future exploitation or sale, then the relevant amount will be written off
in the statement of profit or loss. Changes in assumptions may result in a material adjustment to the carrying amount of
exploration and evaluation assets.
Share-based payment transactions
The Group measures the cost of equity-settled transactions with employees by reference to the fair value of the equity
investments at the date on which they are granted. Additional information is set out in note 7.3, Share-based payments.
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1.6. Foreign Currency Transactions and Balances
Functional and presentation currency
The functional currency of each of the Group’s entities is measured using the currency of the primary economic
environment in which that entity operates.
The functional currency of the entities in the Group is predominantly Australian Dollars, with the exception of ioneer
USA Corporation and ioneer Minerals Corporation who both have a functional currency of United States Dollars,
effective from 1 July 2018.
The consolidated financial statements continue to be presented in Australian dollars, which is the parent entity’s
functional currency.
Transactions and balances
Foreign currency transactions are translated at the foreign exchange rate at the date of the transaction. Monetary assets
and liabilities denominated in a foreign currency at the end of the reporting period are translated at the year-end
exchange rate. Exchange differences arising on the translation of monetary items are recognised in the statement of
profit or loss.
Non-monetary items measured at historical cost continue to be carried at the exchange rate at the date of the
transaction. Exchange differences arising on the translation of non-monetary items are recognised directly in other
comprehensive income to the extent that the underlying gain or loss is recognised in other comprehensive income;
otherwise the exchange difference is recognised in profit or loss.
Non-monetary assets and liabilities denominated in foreign currencies that are stated at fair value are translated at
foreign exchange rates at the dates the fair value was determine.
Presentation of foreign exchange gains and losses in the statement of profit or loss
The Group presents its foreign exchange gains and losses within net financing income /expense in the statement of
profit or loss.
1.7. Comparatives
Where applicable, comparative figures have been adjusted to conform to any changes in presentation for the current
financial year.
48
IONEER LTD 2020 ANNUAL REPORT 48
Notes to and forming part of the financial statements continuedioneer Annual Report 2020
Section 2. Financial performance
2.1. Operating segments
An operating segment is a component of the Group that engages in business activities from which it may earn revenues and
incur expenses, including revenues and expenses that relate to transactions with any of the Group’s other components. An
operating segment’s operating results are reviewed regularly by the Chief Operating Decision Maker (CODM) to make
decisions about resources to be allocated to the segment and assess its performance, and for which discrete financial
information is available. The Managing Director is considered to be the CODM and is empowered by the Board to allocate
resources and assess the performance of the Group.
Segment results that are reported to the CODM include items directly attributable to a segment as well as those that can be
allocated on a reasonable basis.
Description of segments
The Company operates predominantly as a mineral exploration and development company. The operating segments are
based on the reports reviewed by the Managing Director for assessing performance and determining the allocation of
resources and strategic decision making within the Group.
North America
Australia
Represents activity in the US, primarily in relation to Rhyolite Ridge and the Reno office.
Represents head office expenditure, including ASX listing costs, exchange gains and losses
and corporate assets (predominantly cash).
Segment information provided to the CODM:
Segment information
North America
Exploration expenditure - non core
Other income
Reportable segment profit / (loss)
Employee benefits and other expenses
Net financing (expense) / income
Net loss before income tax
Segment assets
Exploration assets
Other assets
Total assets
Segment liabilities
Payables
Provisions
Total current liabilities
Payables
Total non-current liabilities
Total liabilities
Net assets
2020
$’000
(81)
138
57
(2,841)
1
(2,783)
94,824
9,764
104,588
2,095
189
2,284
404
404
2,688
101,900
2019
$’000
(177)
-
(177)
(562)
(6)
(745)
49,366
891
50,257
2,007
95
2,102
-
-
2,102
48,156
Major customers
The Company has no customers and nil revenues (2019: nil).
Australia
2020
$’000
2019
$’000
-
-
-
(4,620)
4,424
(196)
-
48,284
48,284
711
72
784
-
-
-
-
-
(5,473)
2,809
(2,663)
-
29,230
29,230
1,002
82
1,084
-
-
1,084
28,146
Total
2020
$’000
(81)
138
57
(8,313)
2,810
(5,446)
94,824
38,994
133,818
3,097
271
3,368
404
404
2019
$’000
(177)
-
(177)
(5,183)
4,419
(941)
49,366
49,175
98,541
2,718
167
2,886
-
-
2,886
95,656
784
47,500
3,772
130,046
(1)
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2.2. Other income
Write back of reclamation bonds
Total other income
30 June 2020
$’000
30 June 2019
$’000
138
138
-
-
The Group has recognised in non-current receivables during the period, outstanding reclamation bonds previously written
off as exploration expenditure.
2.3. Other expenses
General and administrative expenses
Consulting and professional costs
Depreciation and amortisation
Total other expenses
2.4. Net finance income
Interest income
Net foreign exchange gain
Finance income
Bank charges
Lease interest
Finance expense
Net finance income
1,975
1,224
51
3,250
721
2,117
2,838
(20)
(8)
(28)
1,729
1,487
11
3,227
1,660
2,766
4,426
(7)
-
(7)
2,810
4,419
Interest income is recorded at the effective interest rate applicable to the financial instrument. Interest is recognised as it
accrues (using the effective interest method, which is the rate that exactly discounts estimated future cash receipts through
the expected life of the financial instrument) to the net carrying amount of the financial asset.
50
IONEER LTD 2020 ANNUAL REPORT 50
Notes to and forming part of the financial statements continuedioneer Annual Report 2020
2.5. Earnings per share
Earnings used in calculating earnings per share
Basic and diluted loss
Weighted average number of ordinary shares used as the
denominator
Issued ordinary shares - opening balance
Effect of shares issued
30 June 2020
$’000
30 June 2019
$’000
(5,446)
(941)
Number
Number
1,474,983,509
122,026,219
1,469,497,083
2,361,488
Weighted average number of ordinary shares
1,597,009,728
1,471,858,571
Weighted average number of ordinary shares (diluted)
Weighted average number of ordinary shares at 30 June for basic EPS
Effect of dilution from options and rights on issue
Weighted average number of ordinary shares adjusted for effect of
dilution
1,597,009,728
53,324,084
1,471,858,571
48,822,626
1,650,333,812
1,520,681,197
Basic loss per share attributable to the ordinary equity holders of
the company
Diluted loss per share attributable to the ordinary equity holders of
the company
Cents
Cents
(0.34)
(0.34)
(0.06)
(0.06)
Basic EPS is calculated by dividing the profit for the year attributable to ordinary equity holders of the parent by the
weighted average number of ordinary shares outstanding during the year.
Diluted EPS is calculated by dividing the profit attributable to ordinary equity holders of the parent by the weighted average
number of ordinary shares outstanding during the year plus the weighted average number of ordinary shares that would be
issued on conversion of all the dilutive potential ordinary shares into ordinary shares. The impact the potential ordinary
shares is treated as dilutive only when their conversion to ordinary shares would decrease EPS.
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Section 3. Taxation
3.1. Taxation
Tax expense comprises:
Income tax
Current tax benefit / (expense)
Tax expense related to movements in deferred tax balances
Total tax (expense) / benefit
Numerical reconciliation between tax (expense) / benefit and pre-tax net result:
Profit /(Loss) before tax
Prima facie taxation benefit at 30%
Decrease / (increase) in income tax benefit due to:
Non-deductible expenses
Foreign exchange and other translation adjustments
Additional tax deductible expenditure
Un-recognised tax losses relating to current year
Adjustments for prior years
Income tax (expense) / benefit
30 June 2020
$’000
30 June 2019
$’000
-
-
-
(5,446)
(1,634)
287
(616)
(82)
2,142
(97)
-
-
-
-
(941)
(282)
85
(869)
(46)
1,112
-
-
No provision for income tax is considered necessary in respect of the Company for the year ended 30 June 2020. No
recognition has been given to any future income tax benefit which may arise from operating losses not claimed for tax
purposes. The Group has estimated tax loss positions across the group as follows:
Non-recognised tax losses - revenue
Balance at the beginning of the period
Movement during the period
Balance at the end of the period
Non-recognised tax losses - capital
Balance at the beginning of the period
Movement during the period
Balance at the end of the period
Jurisdiction
Australia
Revenue
AUD$'000
USA
Revenue
US$'000
Canada
Revenue
CAD$'000
9,908
4,290
14,198
4,729
2,008
6,737
490
(356)
134
Capital
AUD$'000
Capital
US$'000
Capital
CAD$'000
1,142
6,165
7,307
-
-
-
6,275
(6,275)
-
Total revenue and capital losses not recognised
21,505
6,737
134
These amounts will only be obtained if:
•
•
•
the Company and Controlled Entities derive future assessable income of a nature and of an amount sufficient to
enable the benefit from the deductions for the losses to be realised,
the Company and Controlled Entities continue to comply with the conditions for deductibility imposed by the
law, and
no changes in tax legislation adversely affect the Company and Controlled Entities in realising the benefit from
the deductions for the losses, i.e. current tax legislation permits carried forward tax losses to be carried forward
indefinitely.
ioneer Ltd is not part of an Australian tax-consolidated group. Current and deferred tax amounts (if any) are measured as
a stand-alone taxpayer. There are no tax funding arrangements or tax sharing agreements in place.
The group has additional tax value embedded in the Rhyolite Ridge exploration asset. Future deductibility is expected
against anticipated assessable income from the Project once in production.
52
IONEER LTD 2020 ANNUAL REPORT 52
Notes to and forming part of the financial statements continuedioneer Annual Report 2020
Section 4. Invested and working capital
4.1. Cash assets
Cash at bank
Short term deposits
Total cash assets
Cash flow reconciliation
Reconciliation of net cash outflow from operating activities to
operating loss after tax
Loss for the period
Adjustments to reconcile profit to net cash flows:
Depreciation
Other income
Exploration expenditure written-off
Share-based payments
Net foreign exchange differences - unrealised
Interest income
Lease liabilities
Change in assets and liabilities during the financial year:
Increase in trade and other receivables
Increase / (decrease) in accounts payable
Net cash used in operating activities
30 June 2020
$’000
30 June 2019
$’000
17,386
20,882
38,268
(5,446)
53
(138)
81
682
(2,116)
(721)
103
(243)
972
(6,773)
2,338
46,265
48,604
(941)
11
-
177
182
(2,827)
(1,660)
-
(413)
548
(4,923)
Cash assets in the consolidated statement of financial position comprise cash at bank and deposits with an average
maturity of three months or less.
4.2. Receivables
Current
Interest receivable
Other debtors
Total current trade and other receivables
Non-current
Other debtors
Total non-current trade and other receivables
3
55
58
337
337
26
293
319
211
211
Receivables are recognised initially at fair value and subsequently measured at amortised cost using the effective interest
rate method less provision for impairment. Impairment losses are recognised in the profit and loss.
IONEER LTD 2020 ANNUAL REPORT 53
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4.3. Plant and equipment
Plant and equipment - at cost
Less accumulated depreciation
Total plant and equipment
Reconciliation of the movement
Opening balance
Additions
Disposals
Depreciation expense
Foreign exchange translation difference
Closing balance
30 June 2020
$’000
30 June 2019
$’000
78
(69)
9
41
21
(2)
(51)
-
9
54
(13)
41
5
47
-
(11)
-
41
Tangible plant and equipment assets are stated at cost less accumulated depreciation and any impairment in value.
Depreciation is calculated on a straight-line basis over the useful life of the asset being between 1-4 years.
An item of plant and equipment is derecognised upon disposal. 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 item) is included in the
statement of comprehensive income in the period the item is derecognised.
At each reporting date, the Group assesses whether there is any indication that an asset may be impaired. Where an
indicator of impairment exists, the Group makes a formal estimate of recoverable amount. Where the carrying amount of
an asset exceeds its recoverable amount the asset is considered impaired and is written down to its recoverable amount.
Recoverable amount is the greater of fair value less costs to sell and value in use.
4.4. Right of Use Asset
Premises - at cost
Less accumulated depreciation
Total Right of Use Asset
Reconciliation of the movement
Opening balance
Impact of adoption at 1 July 2019
Additions
Depreciation expense
Closing balance
434
(112)
322
-
177
257
(112)
322
-
-
-
-
-
-
-
-
The Group adopted the following new accounting policy upon adoption of AASB 16, which has been applied from the date
of initial application:
The Group recognises right-of-use assets at the commencement date of the lease (i.e., the date the underlying asset is
available for use). Right-of-use assets are measured at cost, less any accumulated depreciation and impairment losses, and
adjusted for any remeasurement of lease liabilities. The cost of right-of-use assets includes the amount of lease liabilities
recognised, initial direct costs incurred, and lease payments made at or before the commencement date less any lease
incentives received. Unless the Group is reasonably certain to obtain ownership of the leased asset at the end of the lease
term, the recognised right-of-use assets are depreciated on a straight-line basis over the shorter of its estimated useful life
and the lease term. Right-of-use assets are subject to impairment
54
IONEER LTD 2020 ANNUAL REPORT 54
Notes to and forming part of the financial statements continuedioneer Annual Report 2020
4.5. Exploration and evaluation expenditure
Exploration and evaluation expenditure incurred by or on behalf of the Group is accumulated separately for each area of
interest. Such expenditure comprises net direct costs and an appropriate portion of related overhead expenditure but
does not include general overheads or administrative expenditure not having a specific connection with a particular area
of interest.
Exploration and evaluation costs in relation to separate areas of interest for which rights of tenure are current are brought
to account in the year in which they are incurred and carried forward provided that:
•
•
such costs are expected to be recouped through successful development and exploitation of the area, or
alternatively through its sale; or
exploration and/or evaluation activities in the area have not yet reached a stage which permits a reasonable
assessment of the existence or otherwise of economically recoverable reserves.
Once a development decision has been taken, all past and future exploration and evaluation assets in respect of the area
of interest are tested for impairment and transferred to the cost of development. To date, no development decision has
been made.
The Directors assess at each reporting date whether there is an indication that an asset has been impaired and for
exploration and evaluation costs carried forward whether the above carry forward criteria are met. No indicator of
impairment has been identified as at 30 June 2020.
When the above criteria do not apply or when the Directors assess that the carrying value may exceed the recoverable
amount the accumulated costs in respect of areas of interest are written off in the Statement of profit and loss and other
comprehensive income.
Exploration and evaluation expenditure
Reconciliation of movement
Opening balance
Additions - Rhyolite Ridge
Exploration expenditure - non core
Exploration expenditure - written off
Foreign exchange translation difference
Carrying amount at the end of the financial year
30 June 2020
$’000
30 June 2019
$’000
94,824
49,366
44,362
81
(81)
1,096
94,824
49,366
14,915
33,627
177
(177)
824
49,366
The above amounts represent costs of areas of interest carried forward as an asset in accordance with the accounting
policy described above. The ultimate recoupment of exploration and evaluation expenditure in respect of an area of
interest carried forward is dependent upon the discovery of commercially viable reserves and the successful development
and exploitation of the respective areas or alternatively sale of the underlying areas of interest for at least their carrying
value. Amortisation, in respect of the relevant area of interest, is not charged until a mining operation has commenced.
All exploration and evaluation costs carried forward relate to the Rhyolite Ridge Lithium–Boron Project in Nevada, USA.
Exploration and evaluation expenditure on all other tenements owned by the Company has been fully impaired.
4.6. Payables
Current
Trade creditors and other payables
Accrued expenses
Lease Liabilities
Total current payables
Non-Current
Trade creditors and other payables
Lease Liabilities
Total non-current payables
Total current and non-current payables
1,557
1,335
205
3,097
276
128
404
3,501
2,232
486
-
2,718
-
-
-
2,718
All financial liabilities are recognised initially at fair value net of directly attributable transaction costs.
After initial measurement, financial liabilities are subsequently measured at amortised cost. Current payables, other than
lease liabilities, due to their short-term nature are measured at amortised cost and are not discounted.
IONEER LTD 2020 ANNUAL REPORT 55
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The current payables, other than lease liabilities, are unsecured and are non-interest bearing generally on 30-60 day terms.
The carrying amounts approximate fair value.
The Group adopted the following new accounting policy upon adoption of AASB 16, which has been applied from the date
of initial application:
At the commencement date of the lease, the Group recognises lease liabilities measured at the present value of lease
payments to be made over the lease term. The lease payments include fixed payments (including in - substance fixed
payments) less any lease incentives receivable, variable lease payments that depend on an index or a rate, and amounts
expected to be paid under residual value guarantees. The lease payments also include the exercise price of a purchase
option reasonably certain to be exercised by the Group and payments of penalties for terminating a lease, if the lease term
reflects the Group exercising the option to terminate. The variable lease payments that do not depend on an index or a rate
are recognised as expense in the period on which the event or condition that triggers the payment occurs.
In calculating the present value of lease payments, the Group uses the incremental borrowing rate at the lease
commencement date if the interest rate implicit in the lease is not readily determinable. After the commencement date, the
amount of lease liabilities is increased to reflect the accretion of interest and reduced for the lease payments made. In
addition, the carrying amount of lease liabilities is remeasured if there is a modification, a change in the lease term, a change
in the in-substance fixed lease payments or a change in the assessment to purchase the underlying asset.
4.7. Provisions
Employee entitlements
Current
Provision for employee benefits
30 June 2020
$’000
30 June 2019
$’000
271
167
Provision is made for the Group’s liability for employee benefits arising from services rendered by employees to the end of
the reporting period. Employee benefits that are expected to be settled within one year have been measured at the
amounts expected to be paid when the liability is settled. Employee benefits payable later than one year have been
measured at the present value of the estimated future cash outflows to be made for those benefits. In determining the
liability, consideration is given to employee wages increases and the probability that the employee may satisfy vesting
requirements. Those cash flows are discounted using market yields on high quality corporate bonds with terms to maturity
that match the expected timing of cash flows.
56
IONEER LTD 2020 ANNUAL REPORT 56
Notes to and forming part of the financial statements continuedioneer Annual Report 2020
Section 5. Capital structure
5.1. Share capital
Ordinary shares
1,680,202,466 (2019:1,474,983,509) ordinary shares, fully paid
153,290
113,013
30 June 2020
$’000
30 June 2019
$’000
Reconciliation of movement:
Balance at the beginning of the financial
year
Ordinary shares
Exercise of unlisted options (1)
Performance rights vested (2)
Share issue costs
Balance at the end of the financial period
Year ended
30 June 2020
Number
Year ended
30 June 2019
Number
Year ended
30 June 2020
$’000
Year ended
30 June 2019
$’000
1,474,983,509
1,469,497,083
200,000,000
3,750,000
1,468,957
-
1,680,202,466
-
5,000,000
486,426
-
1,474,983,509
113,013
40,000
1,654
422
(1,799)
153,290
112,451
-
687
-
(125)
113,013
(1)
Value of unlisted options exercised equals the sum of the exercise price received plus the fair value transferred from the equity
compensation reserve
(2) Ordinary shares issued to US employees upon vesting of performance rights are issued net of US taxes.
Ordinary shares are classified as equity. Ordinary shares entitle their holder to one vote, either in person or by proxy, at a
meeting of the Company. They have the right to receive dividends as declared and, in the event of winding up the Company,
to participate in the proceeds from the sale of all surplus assets in proportion to the number of and amounts paid up on shares
held.
Incremental costs directly attributable to the issue of new shares, options or rights are shown in equity as a deduction from the
proceeds.
Management controls the capital of the Group in order to maintain a sustainable debt to equity ratio, generate long-term
shareholder value and ensure that the Group can fund its operations and continue as a going concern.
The Group is not subject to any externally imposed capital requirements.
During the year ended 30 June 2020 the Company issued:
•
•
•
•
200,000,000 shares as a consequence of a share placement in November 2019.
3,750,000 shares as a consequence of unlisted options being exercised under the Share Option plan.
982,532 shares as a consequence of Performance Rights vesting under the Equity Incentive Plan.
486,425 shares as a consequence of Performance Rights vesting under the Performance Rights Plan
During the year ended 30 June 2019 the Company issued:
•
•
5,000,000 shares as a consequence of unlisted options being exercised under the Share Option plan.
486,426 shares as a consequence of Rights vesting under the Performance Rights Plan.
IONEER LTD 2020 ANNUAL REPORT 57
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Share schemes
The Company has three share schemes in operation:
•
•
•
The Share Option Plan;
The Performance Rights Plan; and
The Equity Incentive Plan.
Under these plans ordinary shares have been granted to senior executives, employees and a number of consultants. Further
details about the operation of these plans are set out in note 7.3, Shared-based payments. The Equity Incentive Plan is
capable of issuing both options and performance rights. The pre-existing Share Option Plan and the Performance Rights
Plan will be phased out as existing options and rights are issued or expire. The movement in options and performance
rights issued under these plans is set out in the following tables.
Share options
Movement in options on issue for the year ended 30 June 2020
Grant
date
Vesting
date
Expiry
date
13-Apr-17
13-Apr-17
13-Apr-22
13-Apr-17
13-Apr-17
13-Apr-22
13-Apr-17
13-Apr-17
13-Apr-22
13-Apr-17
23-May-18
23-May-22
13-Apr-17
23-May-19
23-May-22
13-Apr-17
23-May-20
23-May-22
09-Jan-18
09-Jan-18
09-Jan-20
09-Jan-18
09-Jan-18
09-Jan-20
09-Jan-18
09-Jan-18
09-Jan-20
09-Jan-18
09-Jan-18
09-Jan-20
09-Nov-18
09-Nov-19
09-Nov-23
NED's(1)
NED's(1)
NED's(1)
NED's(1)
NED's(1)
NED's(1)
Advisors
Advisors
Advisors
Advisors
NED's (1)
NED's(1),(2)
14-Nov-19
14-Nov-20
14-Nov-24
FV per
option
at grant
date
Exercise
price
$
0.122
0.113
0.106
0.063
0.088
0.105
0.304
0.289
0.275
0.263
0.126
0.138
$
0.150
0.200
0.250
0.200
0.200
0.200
0.125
0.150
0.175
0.200
0.242
0.243
Opening
balance
16,000,000
12,000,000
12,000,000
400,000
400,000
200,000
1,250,000
1,250,000
1,250,000
1,250,000
1,430,840
Issued
Exercised
Expired
-
-
-
-
-
-
(1,250,000)
(1,250,000)
-
-
-
-
-
-
-
-
(625,000)
(625,000)
(625,000)
(625,000)
Closing
balance
16,000,000
12,000,000
12,000,000
400,000
400,000
200,000
-
-
-
-
-
1,307,188
-
-
-
-
1,430,840
1,307,188
Movement for the year ended 30 June 2020
47,430,840
1,307,188
(3,750,000)
(1,250,000)
43,738,028
Movement in options on issue for the year ended 30 June 2019
Grant
date
Vesting
date
Expiry
date
31-Jan-17
31-Jan-17
31-Jan-19
31-Jan-17
31-Jan-17
31-Jan-19
31-Jan-17
31-Jan-17
31-Jan-19
31-Jan-17
31-Jan-17
31-Jan-19
31-Jan-17
31-Jan-17
30-Jan-19
31-Jan-17
31-Jan-17
30-Jan-19
13-Apr-17
13-Apr-17
13-Apr-22
13-Apr-17
13-Apr-17
13-Apr-22
13-Apr-17
13-Apr-17
13-Apr-22
13-Apr-17
23-May-18
23-May-22
13-Apr-17
23-May-19
23-May-22
13-Apr-17
09-Jan-18
23-May-20
09-Jan-18
23-May-22
09-Jan-20
09-Jan-18
09-Jan-18
09-Jan-20
09-Jan-18
09-Jan-18
09-Jan-20
09-Jan-18
09-Jan-18
09-Jan-20
Advisors
Advisors
Advisors
Advisors
Advisors
Advisors
NED's(1)
NED's(1)
NED's(1)
NED's(1)
NED's(1)
NED's(1)
Advisors
Advisors
Advisors
Advisors
NED's(1)
07-Nov-18
07-Nov-19
07-Nov-23
FV per
option
at grant
date
$
0.038
0.033
0.029
0.026
0.033
0.026
0.122
0.113
0.106
0.063
0.088
0.105
0.304
0.289
0.275
0.263
0.126
Exercise
price
$
0.125
0.150
0.175
0.200
0.150
0.020
Opening
balance
2,500,000
2,500,000
2,500,000
2,500,000
1,100,000
1,000,000
0.150
16,000,000
0.200
12,000,000
0.250
12,000,000
400,000
400,000
200,000
1,250,000
1,250,000
1,250,000
1,250,000
0.200
0.200
0.200
0.125
0.150
0.175
0.200
0.242
Issued
Exercised
Expired
Closing
balance
(2,500,000)
(2,500,000)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(2,500,000)
(2,500,000)
(1,100,000)
(1,000,000)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
16,000,000
12,000,000
12,000,000
400,000
400,000
200,000
1,250,000
1,250,000
1,250,000
1,250,000
1,430,840
-
1,430,840
Movement for the year ended 30 June 2019
58,100,000
1,430,840
(5,000,000)
(7,100,000)
47,430,840
(1) NED’s refers to Non-executive directors.
(2) During the current financial year each non-executive director was granted 326,797 options under the new Equity Incentive Plan in lieu of director
fees. For further details refer to the remuneration report.
(3) Other refers to options held by various KMP, other employees or ex-employees.
58
IONEER LTD 2020 ANNUAL REPORT 58
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Notes to and forming part of the financial statements continuedioneer Annual Report 2020
Performance rights
Movement in performance rights on issue for the year ended 30 June 2020
Class B(1)
Class C(1)
Class D (2)
Grant
date
Vesting
date
27-Nov-17
27-Nov-19
27-Nov-17
27-Nov-20
14-Nov-18
14-Nov-19
Retention on employment - KMP (3)
08-Aug-19
14-Nov-19
Retention on employment - KMP (3)
08-Aug-19
14-Nov-20
Retention on employment - KMP (3)
08-Aug-19
14-Nov-21
Retention on employment - staff
06-May-19
06-May-20
Retention on employment - staff
06-May-19
06-May-21
Retention on employment - staff
06-May-19
06-May-22
STI - KMP
LTI - KMP (4)
Retention on employment - staff
Catch-up LTIs - KMP
Retention on employment - staff
Retention on employment - KMP
Retention on employment - staff
Retention on employment - staff
Retention on employment - staff
Retention on employment - staff
08-Aug-19
08-Aug-19
01-Jul-19
08-Aug-19
01-Jul-19
01-Jul-19
01-Jul-19
15-Jul-19
15-Jul-19
15-Jul-19
01-Jul-20
01-Jul-22
01-Jul-20
01-Jul-21
01-Jul-21
01-Jul-22
01-Jul-22
15-Jul-20
15-Jul-21
15-Jul-22
Retention on employment - KMP
01-Aug-19
01-Aug-22
Retention on employment - staff (5)
01-Aug-19
01-Aug-22
Retention on employment - staff
14-Oct-19
14-Oct-22
Retention on employment - staff
31-Mar-20
31-Mar-23
Special Award
30-Jun-20
30-Jun-23
Market
Value per
right at
grant date
Opening
balance
Issued
Exercised
Closing
balance
$
Number
Number
Number
Number
0.225
0.225
0.239
0.239
0.239
0.239
0.190
0.190
0.190
0.135
0.135
0.135
0.135
0.135
0.135
0.135
0.185
0.185
0.185
0.186
0.186
0.184
0.085
0.122
486,425
486,425
418,936
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
244,382
244,378
244,378
251,021
251,021
251,021
1,284,953
1,125,434
169,457
1,519,208
169,457
956,145
169,457
256,156
256,156
256,156
741,120
204,580
169,699
555,435
480,000
(486,425)
-
-
486,425
(418,936)
(244,382)
-
-
(251,021)
-
-
-
-
-
-
-
-
-
-
-
-
-
(204,580)
-
-
-
-
-
244,378
244,378
-
251,021
251,021
1,284,953
1,125,434
169,457
1,519,208
169,457
956,145
169,457
256,156
256,156
256,156
741,120
-
169,699
555,435
480,000
Movement for the year ended 30 June 2020
1,391,786
9,799,614
(1,605,344)
9,586,056
Movement in performance rights on issue for the year ended 30 June 2019
Grant
date
Vesting
date
27-Nov-17
27-Nov-18
27-Nov-17
27-Nov-19
27-Nov-17
27-Nov-20
14-Nov-18
14-Nov-19
Market
Value per
right at
grant date
$
0.225
0.225
0.225
0.239
Class A(1)
Class B(1)
Class C(1)
Class D (2)
Issued
Number
-
Exercised
Number
(486,426)
Opening
balance
Number
486,426
486,425
486,425
-
-
-
418,936
Closing
balance
Number
-
486,425
486,425
418,936
-
-
-
Movement for the year ended 30 June 2019
1,459,276
418,936
(486,426)
1,391,786
(1)
(2)
(3)
(4)
The Class A, B & C Performance Rights granted on 27 November 2017 are service based performance rights and vest over time. The vesting
price is nil. These Performance Rights were issued under the terms of the 2016 Performance Rights Plan.
The Class D Performance Rights were granted on 14 November 2018 are service based performance rights and vest over time. The vesting
price is nil. These Performance Rights were granted under the terms of the Equity Incentive Plan established at the 2018 Annual General
Meeting.
These retention on employment awards represent 50% of entitlement due to an administrative error. The balance were awarded post year-end
(refer ASX release dated 15 September 2020).
The 2019 LTI performance rights were proposed to KMPs as 40% time based and 60% performance-based awards. The performance-based awards
were not granted in the period. Whilst the time-based awards were granted, they have not been announced on the ASX pending the issue of the
full award (refer ASX release dated 15 September 2020).
(5) At the Board’s discretion, performance rights were partially subject to accelerated vesting due to redundancy with the remainder lapsing.
For further details regarding the Equity Incentive Plan (2018), the Option Plan and Performance Rights Plan refer to note 7.3.
IONEER LTD 2020 ANNUAL REPORT 59
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5.2. Reserves
Equity compensation reserve
Balance at the beginning of period
Share based payment expensed/capitalised
Fair value of unlisted options exercised
Fair value of performance rights vested
Balance at the end of the financial period
Foreign currency translation reserve
Balance at the beginning of period
Foreign currency translation differences for foreign operations
Balance at the end of the financial period
Total reserves
30 June 2020
$’000
30 June 2019
$’000
8,711
1,233
(1,076)
(422)
8,446
1,566
(175)
1,391
9,837
8,383
328
-
-
8,711
-
1,566
1,566
10,277
The equity compensation reserve is used to recognise the value of equity settled share-based payments provided to
employees, directors and consultants. The fair value of such compensation is measured using generally accepted
valuation methodologies for pricing financial instruments, and incorporates all factors and assumptions that
knowledgeable, willing market participants would consider in setting the price. The fair value of instruments granted is
recognised as an expense or capitalised if appropriate over the vesting period with a corresponding increase in equity.
The foreign currency translation reserve comprises all foreign exchange differences arising from the following:
•
•
The translation of the financial statements of foreign operations where the functional currency is different to the
functional currency of the parent entity; and
Exchange differences arise on the translation of monetary items which form part of the net investment in the
foreign operation.
60
IONEER LTD 2020 ANNUAL REPORT 60
Notes to and forming part of the financial statements continuedioneer Annual Report 2020
Section 6. Financial instruments
6.1. Classification and measurement
The carrying values of financial assets and liabilities of the Group approximate their fair value.
The Group measures and recognises in the statement of financial position on a recurring basis certain assets and liabilities
at fair value in accordance with AASB 13 Fair value measurement. The fair value must be estimated for recognition and
measurement or for disclosure purposes in accordance with the following hierarchy:
Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities;
Level 2: Inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly
(as prices) or indirectly (derived from prices); and
Level 3: Inputs for the asset or liabilities which are not based on observable market data (unobservable inputs).
The Group has no financial assets where the carrying amount exceeds net fair values at balance date. The Group’s
receivables at balance date are detailed in Section 4.2 of this report.
6.2.
Financial risk management
Framework
The Group is involved in activities that expose it to a variety of financial risks including:
a) Credit risk
b) Liquidity risk
c) Capital management risk
d) Market risk related to commodity pricing, interest rates and currency fluctuations.
The Board of Directors has overall responsibility for the establishment and oversight of the financial risk management
framework of the Group. Management is responsible for monitoring the financial risks.
The objective of the financial risk management strategy is to minimise the impact of volatility in financial markets on the
financial performance, cash flows and shareholder returns. This requires the identification and analysis of relevant financial
risks and possible impact on the achievement of the Group’s objectives.
The Group does not undertake any hedging activities.
a) Credit risk
Credit risk is the risk of sustaining a financial loss as a result of the default by a counterparty to make full and timely
payments on transactions which have been executed, after allowing for set-offs which are legally enforceable.
Credit risk arises from investments in cash and cash equivalents with banks and credit exposure to customers and/or
suppliers. Receivables and cash and cash equivalents represent the Group’s maximum exposure to credit risk.
There are no trade receivables past due or impaired at the end of the reporting period (2019: Nil).
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b) Liquidity risk
Liquidity risk is the risk that the Group will not have sufficient liquidity to meet its financial obligations as they fall due.
The Group manages liquidity risk by continually monitoring forecast and actual cash flows and matching maturity profiles of
financial assets and liabilities. Short and long-term cash flow projections are prepared periodically and submitted to the
Board.
Contractual cash flows
Consolidated - 2020
Payables
Consolidated - 2019
Payables
Note
4.6
4.6
Less than 1
year
$’000
1-2 years
$’000
2-5 years
$’000
More than 5
years
$’000
3,135
408
2,718
0
0
0
0
0
Total
$’000
3,543
2,718
c) Capital management risk
The overriding objective of the Group’s capital management strategy is to increase shareholder returns whilst maintaining
the flexibility to pursue the strategic initiatives within a prudent capital structure.
The primary objective of the capital management policy is to ensure the Group maintains a strong credit rating and
appropriate capital ratios to support the development of the Company’s assets.
The Company manages its capital structure and makes adjustments to it in light of economic conditions. During the
financial year the company undertook a capital raise through the issue of new shares. The Board believes that this capital
raise secures the Company’s financial position until the ‘decision to mine’ stage of the Rhyolite Ridge Lithium-Boron Project.
d) Market risk
Foreign exchange risk
The Group operates internationally and is exposed to foreign exchange risk arising from foreign currency exposures,
primarily with respect to United States dollars.
The Company operates bank accounts in US Dollars. Over 79% of the Company’s cash reserves are held in US Dollars. The
Directors are satisfied that the future operations of the company will be in the USA so it is prudent to hold cash reserves in
US dollars to avoid any unnecessary currency exposure.
Average rate for the
year ended 30 June
2020
Spot rate at the end of the
reporting period
2020
Exchange rates applied during the year:
AUD / USD
Financial instruments denominated in United States dollars
Financial assets
Cash
Trade and other receivables
Financial liabilities
Trade and other payables
0.6714
2020
A$’000
30,377
32
2,443
0.6863
2019
A$’000
45,335
91
2,007
An increase in AUD:USD foreign exchange rates of 10% will result in a $2,762,000 (30 June 2019: $4,121,000) increase in
current year loss and decrease in US dollar currency bank balances. In addition, there would be an $3,000 (30 June 2019:
$11,000) decrease in US dollar receivables with nil impact on current year loss because the impact is taken to foreign
currency translation reserve.
62
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Notes to and forming part of the financial statements continuedioneer Annual Report 2020
A decrease in AUD:USD foreign exchange rates of 10% will result in a $3,375,000 (30 June 2019: $5,037,000) decrease in
current year loss and an increase in US dollar currency bank balances. In addition, there would be a $3,000 (30 June 2019:
$13,000) increase in US dollar receivables with nil impact on current year loss because the impact is taken to foreign currency
translation reserve.
In addition an increase in AUD:USD foreign exchange rates of 10% will result in a $222,000 (30 June 2019: $191,000) increase
in payables. A decrease in AUD:USD foreign exchange rates of 10% will result in a $271,000 (30 June 2019: $233,000)
decrease in payables. There would be nil impact on current year loss because the difference is taken to foreign currency
translation reserve.
Interest rate risk
The Company’s exposure to interest rate risk, which is the risk that a financial instrument’s value will fluctuate as a result of
reasonable possible changes in the market interest rates arise in relation to the Company’s bank balances.
The Company does not engage in any hedging or derivative transactions to manage interest rate risk.
An increase of interest rates of 1% will result in a $473,000 (30 June 2019 $659,000) decrease in the current year loss and
an increase in interest income related to cash deposits. A decrease of interest rates of 1% will result in a $473,000 (30
June 2019 $659,000) increase in current year loss and decrease in interest income related to cash deposits.
Commodity price risk
The Company is exposed to future commodity price risk. This risk arises from its activities directed at exploration and
development of mineral commodities. If commodity prices fall, the market for companies exploring for these
commodities is affected. The Company does not hedge its exposures.
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Section 7. Employee benefits and KMP disclosures
7.1.
Employee benefits expensed
Director fees
Employee benefits expense
Share-based payments
Total employee benefit expense
7.2. Key management personnel disclosure
Key management personnel (KMP) comprised the following:
Short-term employee
Post-employment benefits
Share-based payments
Total payments to KMP
30 June 2020
30 June 2019
$’000
$’000
883
3,498
682
5,063
3,859
-
986
4,845
428
1,346
182
1,956
1,831
134
328
2,294
Transactions with directors and KMP
With the exception of the disclosures within this note, no director or executive has entered into any material contracts
with the Group since the end of the previous financial year and there were no material contracts involving directors’ or
executive interests existing at year end.
The Company has entered into indemnity deeds to indemnify executives of the Company against certain liabilities
incurred in the course of performing their duties.
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Notes to and forming part of the financial statements continuedioneer Annual Report 2020
Share-based payments
7.3.
Share-based compensation is provided to employees via rights or options to acquire shares in the Company. As
described in note 5.1, Share capital, the Company has three share schemes in operation. Under these plans, options or
performance rights which may be converted into ordinary shares have been granted to senior executives, employees and
a number of consultants.
The cost of these equity-settled transactions is determined by reference to the fair value at the date at which they are
granted. The fair value of the options granted is determined using the Black & Scholes option pricing model. The fair value
of the performance rights granted with time based hurdles is determined by using the 10 day VWAP of the Company’s fully
paid share capital, up to and including the date the performance rights are issued, and for the performance based
performance rights the fair value is determined by using a Monte Carlo model for the valuation of the performance rights
subject to the relative TSR performance hurdle and for those rights subject to the business objectives, the valuation is equal
to the value of the share price at grant date, multiplied by the number of shares anticipated to vest.
The cumulative expense recognised for equity-settled transactions at each reporting date reflects:
i.
ii.
the extent to which the vesting period has expired, and
the number of awards that, in the opinion of the directors of the Company, will ultimately vest.
This opinion is formed based on the best available information at balance date. Where an equity-settled award is
cancelled, the estimate is treated as if it had vested on the date of cancellation, and any expense not yet recognised for the
award is recognised immediately.
Each plan is described in more detail below.
Equity Incentive Plan – established at the 2018 AGM
A new Equity Incentive Plan was established following the AGM held on 31 October 2018. The purpose of the new Equity
Incentive Plan (“the Plan”) is to provide eligible persons the opportunity to participate in the growth and profits of the
Company and to attract, motivate and retain their services to promote the Company’s long-term success.
Under the terms of the Plan, the Board may at its discretion invite eligible persons to participate in a grant of awards. An
award may be either an option or performance right, to acquire a share in the capital of the Company in accordance with
the Plan rules.
Options and rights issued under the terms and condition of the new ioneer Equity Incentive Plan are as follows:
Key terms
Expiry Date
Type
Options
Non-Executive
Directors
The options were issued at an exercise price equal to the
VWAP for the Company’s shares over the 10 trading days
immediately before the date of the AGM. The options vest
after 12 months and expire 60 months from the date of issue.
Performance rights – time-based
Retention on
Employment
• Agreements with early recruits included vesting in equal
instalments after 12, 24 and 36 months. However, since
mid-2019 a standard approach of vesting after 3 years has
been implemented.
• Conditional on the achievement of continuing
employment
Tranche 1: 9 Nov 23
Tranche 2: 14 Nov 24
N/A
Deferred STI
• 12 month vesting period from 1 July the year following
N/A
the relevant STI period
• Conditional on the achievement of continuing
employment
Make-up LTI
grants for 2017 &
2018
• 36 month vesting period from 1 July 2017 & 1 July 2018
N/A
respectively
• Conditional on the achievement of continuing
employment
LTI grants
• 36 month vesting period from 1 July of relevant period
• Conditional on the achievement of continuing
N/A
employment
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Type
Key terms
Expiry Date
Performance rights – performance-based
LTI grants
•
•
36 month vesting period from 1 July of relevant
period
The Board will employ discretion in assessing Project
results and determining the vesting of performance
units; below, at or above targets (up to 200%)
N/A
Key features include:
The Board may at its discretion make invitations to or grant awards to eligible persons.
•
• Award means an option or a performance right to acquire a Share in the capital of the Company.
•
Eligible Persons include executive directors or executive officers of the Group, employees, contractors or
consultants of the group or any other person.
• A participant may not sell or assign awards.
• Within 30 days after the vesting date in respect of a vested performance right, the Company must either allocate
shares or procure payment to the participant of a cash amount equal to the market price of the shares which
would have otherwise been allocated.
• At any time during the exercise period a participant may exercise any or all of their vested options by paying the
exercise price.
Whilst there are a number of options and performance rights remaining on issue under the terms and conditions of
previous schemes, no further options or rights will be issued under these pre-existing schemes which are described
below.
Share Option Plan
The Group established a Share Option Plan in 2010 (and reconfirmed it at the 2016 AGM) to assist in the attraction,
retention and motivation of KMP and in the retention of key consultants. Key features include:
Full or part time employees or consultants of the Group are eligible to participate.
•
• Options issued pursuant to the plan will be issued free of charge.
• Options cannot be transferred and are not quoted on the ASX.
• Options expire if not exercised 90 days after a participant resigns from the Company.
•
The exercise price of the options, at grant date, shall be as the directors in their absolute discretion determine,
provided the exercise price shall not be less than the weighted average of the last sale price of the Company’s
shares on ASX at the close of business on each of the 5 business days immediately preceding the date on which
the directors resolve to grant the options.
The directors may limit the total number of options which may be exercised under the plan in any year.
•
A summary of options on issue is set out in note 5.1.
Performance Rights Plan
In addition to the Share Option Plan discussed above, the Group established the Performance Rights Plan at the 2016
AGM to assist in the attraction, retention and motivation of the Company’s directors, executives, employees and senior
consultants. Key features include:
•
•
•
•
•
The Board will determine the number of performance rights to be granted to eligible employees (or their
nominees), the vesting conditions and expiry date of the performance rights in its sole discretion.
The performance rights are not transferable unless the Board determines otherwise, or the transfer is required
by law and provided that the transfer complies with the Corporations Act.
Subject to the Corporations Act and the Listing Rules and restrictions on reducing the rights of a holder of
performance rights, the Board will have the power to amend the Performance Rights Plan as it sees fit.
If a vesting condition of a performance right is not achieved by the milestone date, then the performance right
will lapse.
The performance rights will be granted for nil consideration. Upon exercise of the rights, shares will be issued
on a one for one basis on the same terms as the Company's existing Shares.
A summary of performance rights on issue is set out in note 5.1.
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IONEER LTD 2020 ANNUAL REPORT 66
Notes to and forming part of the financial statements continuedioneer Annual Report 2020
Section 8. Group structure
8.1. Parent entity disclosures
Result for the parent entity
Loss for the period
Total comprehensive loss for the period
Financial position of the parent entity
Current assets
Non-current assets
Total assets
Current liabilities
Total liabilities
Net assets
Contributed equity
Reserves
Accumulated losses
Total equity
30 June 2020
$’000
30 June 2019
$’000
(8,829)
(8,829)
138,441
162
138,603
1,083
1,083
137,520
153,291
8,446
(24,217)
137,520
(240)
(240)
107,001
118
107,119
784
784
106,335
113,013
8,711
(15,389)
106,335
Parent entity contingencies and disclosures
Commitments of the Company as at reporting date are disclosed in note 9.1 to the financial statements.
Parent entity guarantees in respect of debts of its subsidiaries
No guarantees have been entered into by the Company in relation to the debts of its subsidiaries.
8.2. Controlled entities
Controlled entities of ioneer Ltd
ioneer USA Corporation
ioneer Minerals Corporation
ioneer holdings USA Inc.
ioneer holdings Nevada Inc.
Gerlach Gold LLC
Paradigm AZ LLC
PGPL Minerals USA Pty Limited
PGPL Diamonds Pty Limited
PGPL Minerals Middle America Pty Limited
PGPL Minerals South America Pty Limited
Paradigm Canadian Diamonds Pty Limited
Banlona Pty Ltd
Paradigm Nevada Pty Ltd
Paradigm Geoscience (North America) Pty Ltd
(1) Deregistration completed 31 July 2019
(2) Dissolution registered 16 June 2020.
Note
Country of
incorporation
USA
USA
USA
USA
USA
USA
Canada
Canada
Canada
Canada
Canada
Australia
Australia
Australia
2
2
2
1
1
1
2020
ownership
interest
100
100
100
100
100
100
100
100
-
-
-
-
-
-
2019
ownership
interest
100
100
-
-
100
100
100
100
100
100
100
100
100
100
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Section 9. Other disclosures
9.1. Capital and other commitments
Payable within one year
Water rights
Non-cancellable lease commitments
Exploration and evaluation expenditure commitments
Sub total
Payable after one year but not later than five years
Water rights
Non-cancellable lease commitments
Exploration and evaluation expenditure commitments
Sub total
Payable later than five years
Water rights
Non-cancellable operating lease rental commitments
Exploration and evaluation expenditure commitments
Sub total
Total commitments
Water rights
30 June 2020
$’000
30 June 2019
$’000
269
44
253
566
603
51
506
1,160
-
-
-
-
1,726
113
192
204
509
148
216
408
771
-
-
-
-
1,280
The Company has secured water rights via exclusive options to enter long-term leases. In addition, there is an option to
purchase these water rights and associated land at any time at the Company’s sole election, this is a discretionary
purchase and is excluded from the commitments disclosed above.
Non-cancellable lease commitments
Included within non-cancellable lease commitments is the lease of a neighbouring property to the Rhyolite Ridge
Lithium-Boron Project. The Company has entered an option agreement to purchase this property. The cost of this
discretionary purchase is excluded from the commitments disclosed above.
Exploration licence expenditure requirements
In order to maintain the Company’s tenements in good standing with the various mines departments and comply with the
underlying option agreements, the Company will be required to pay annual claim maintenance fees. It is likely that the
granting of new licenses and changes in license areas at renewal or expiry will change the expenditure commitment to the
Company from time to time.
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IONEER LTD 2020 ANNUAL REPORT 68
Notes to and forming part of the financial statements continuedioneer Annual Report 2020
9.2. Contingent liabilities
Settlement of Rhyolite Ridge
The Company entered an option agreement to purchase Rhyolite Ridge from Boundary Peak Minerals LLC on 3 June 2016.
The Company has made 4 progress payments to Boundary Peak under the agreement. A final payment will fall due
following Board making a ‘decision to mine’ the Rhyolite Ridge property. Once this decision is made, the Company is
required under the terms of the contract to either:
•
•
Pay Boundary Peak LLC US$3 million, or
Issue shares (or a mix of both shares and cash) to Boundary Peak LLC, to the equivalent of US$3 million at a fixed
exchange rate of USD $0.75 = AUD$1.00.
At the date of this report the decision to mine has not yet been made by the Company.
There are no other known contingent liabilities as at 30 June 2020.
9.3. Auditors remuneration
Audit services
Ernst & Young
Audit and review of financial statements
30 June 2020
$
30 June 2019
$
46,100
44,300
9.4.
Related Party disclosures
Non-key management personnel disclosures
The Group has a related party relationship with its controlled entities, refer to note 8.2. The Company and its controlled
entities engage in a variety of related party transactions in the ordinary course of business. These transactions are
conducted on normal terms and conditions.
Key management personnel disclosures
For all related party transactions with key management personnel, refer to note 7.2, Key management personnel
disclosures.
9.5. Events after reporting date
There has not been in the period since 30 June 2020 and up to the date of this report any other item, transaction or event
of a material and unusual nature likely in the opinion of directors, to substantially affect the operations of the Group, the
results of those operations or the state of affairs of the Group in subsequent financial years.
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Directors’ declaration
Directors’ declaration
In accordance with a resolution of the Directors of ioneer Ltd, I state that:
(1)
In the opinion of the Directors:
(a)
The financial statements and notes of the Consolidated Entity are in accordance with the Corporations
Act 2001, including:
(i)
giving a true and fair view of the Consolidated Entity's financial position as at 30 June 2020 and of
its performance for the year ended on that date; and
complying with Accounting Standards and the Corporations Regulations 2001; and
(ii)
there are reasonable grounds to believe that the Consolidated Entity will be able to pay its debts as and
when they become due and payable.
(b)
(2)
This declaration has been made after receiving the declarations required to be made to the Directors in
accordance with section 295A of the Corporations Act 2001 for the financial year ended 30 June 2020.
On behalf of the Board
James D Calaway
Executive Chairman
Sydney, 17th September 2020
70
IONEER LTD 2020 ANNUAL REPORT 70
ioneer Annual Report 2020
Independent auditor’s report
Ernst & Young
200 George Street
Sydney NSW 2000 Australia
GPO Box 2646 Sydney NSW 2001
Tel: +61 2 9248 5555
Fax: +61 2 9248 5959
ey.com/au
Independent Auditor's Report to the Members of ioneer Ltd
Report on the Audit of the Financial Report
Opinion
We have audited the financial report of ioneer Ltd (the Company) and its subsidiaries (collectively the
Group), which comprises the consolidated statement of financial position as at 30 June 2020, the
consolidated statement of profit and loss and other comprehensive income, consolidated statement of
changes in equity and consolidated statement of cash flows for the year then ended, notes to the
financial statements, including a summary of significant accounting policies, and the directors'
declaration.
In our opinion, the accompanying financial report of the Group is in accordance with the Corporations
Act 2001, including:
a)
b)
giving a true and fair view of the consolidated financial position of the Group as at 30 June 2020
and of its consolidated financial performance for the year ended on that date; 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 ethical requirements of the
Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for Professional
Accountants (including Independence Standards) (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 believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our opinion.
A member firm of Ernst & Young Global Limited
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Key Audit Matters
Key audit matters are those matters that, in our professional judgment, 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, but we do not provide a
separate opinion on these matters. For each matter below, our description of how our audit addressed
the matter is provided in that context.
We have fulfilled the responsibilities described in the Auditor’s Responsibilities for the Audit of the
Financial Report section of our report, including in relation to these matters. Accordingly, our audit
included the performance of procedures designed to respond to our assessment of the risks of material
misstatement of the financial report. The results of our audit procedures, including the procedures
performed to address the matters below, provide the basis for our audit opinion on the accompanying
financial report.
Carrying value of capitalised exploration and evaluation expenditure
Why significant
How our audit addressed the key audit matter
At 30 June 2020 the Group recorded capitalised
exploration & evaluation (E&E) assets of $94.8
million relating to the Rhyolite Ridge project.
The carrying value of exploration and evaluation
expenditure is assessed for impairment when
facts and circumstances indicate the capitalised
exploration and evaluation expenditure may
exceed its recoverable amount.
The determination as to whether there are any
indicators to require the Group’s Rhyolite Ridge
project to be assessed for impairment involves
judgment, including whether: the Group has
tenure; the Group’s ability and intention to
continue to evaluate and develop the Rhyolite
Ridge project; and whether the results of the
Group’s exploration and evaluation work to date
are sufficiently progressed for a decision to be
made as to the commercial viability or otherwise
of the project.
Given the value of the balance and the
judgmental nature of impairment indicator
assessments associated with exploration and
evaluation assets, we consider this a key audit
matter.
Our audit procedures included the following:
► Considered the Group’s right to explore in the
relevant exploration area which included
obtaining and assessing relevant
documentation such as license agreements.
► Considered the Group’s intention to carry out
significant exploration and evaluation activity
in the relevant exploration area which
included assessment of the Group’s cash-flow
forecast models and discussions with senior
management and Directors as to the
intentions and strategy of the Group.
► Assessed the Group’s consideration of the
existence of any indicators of impairment at
30 June 2020.
► Considered the adequacy of disclosures
included within Note 4.5 of the financial
report.
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72
Independent auditor’s report continuedioneer Annual Report 2020
Information Other than the Financial Report and Auditor’s Report Thereon
The directors are responsible for the other information. The other information comprises the Company’s
2020 Annual Report, 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 we do not and will not
express any form of assurance conclusion thereon, with the exception of the Remuneration Report and
our related assurance opinion.
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 Australian Accounting Standards and the Corporations Act 2001
and for such internal control as the directors determine is necessary to enable the preparation of the
financial report that gives a true and fair view and is free from material misstatement, whether due to
fraud or error.
In preparing the financial report, the directors are responsible for assessing the Group’s ability to
continue as a going concern, disclosing, as applicable, matters relating to going concern and using the
going concern basis of accounting unless the directors either intend to liquidate the Group 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 the 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.
As part of an audit in accordance with the Australian Auditing Standards, we exercise professional
judgment and maintain professional scepticism throughout the audit. We also:
•
•
Identify and assess the risks of material misstatement of the financial report, whether due to
fraud or error, design and perform audit procedures responsive to those risks, and obtain audit
evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not
detecting a material misstatement resulting from fraud is higher than for one resulting from error,
as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the
override of internal control.
Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the Group’s internal control.
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Independent auditor’s report continued
•
•
•
•
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by the directors.
Conclude on the appropriateness of the directors’ use of the going concern basis of accounting
and, based on the audit evidence obtained, whether a material uncertainty exists related to
events or conditions that may cast significant doubt on the Group’s ability to continue as a going
concern. If we conclude that a material uncertainty exists, we are required to draw attention in
our auditor’s report to the related disclosures in the financial report or, if such disclosures are
inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up
to the date of our auditor’s report. However, future events or conditions may cause the Group to
cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the financial report, including the
disclosures, and whether the financial report represents the underlying transactions and events
in a manner that achieves fair presentation.
Obtain sufficient appropriate audit evidence regarding the financial information of the entities or
business activities within the Group to express an opinion on the financial report. We are
responsible for the direction, supervision and performance of the Group audit. We remain solely
responsible for our audit opinion.
We communicate with the directors regarding, among other matters, the planned scope and timing of
the audit and significant audit findings, including any significant deficiencies in internal control that we
identify during our audit.
We also provide the directors with a statement that we have complied with relevant ethical requirements
regarding independence, and to communicate with them all relationships and other matters that may
reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated to the directors, we determine those matters that were of most
significance in the audit of the financial report of the current year and are therefore the key audit
matters. We describe these matters in our auditor’s report unless law or regulation precludes public
disclosure about the matter or when, in extremely rare circumstances, we determine that a matter
should not be communicated in our report because the adverse consequences of doing so would
reasonably be expected to outweigh the public interest benefits of such communication.
Report on the Audit of the Remuneration Report
Opinion on the Remuneration Report
We have audited the Remuneration Report included in pages 25 to 40 within the directors' report for
the year ended 30 June 2020.
In our opinion, the Remuneration Report of ioneer Ltd for the year ended 30 June 2020, complies with
section 300A of the Corporations Act 2001.
A member firm of Ernst & Young Global Limited
Liability limited by a scheme approved under Professional Standards Legislation
74
ioneer Annual Report 2020
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.
Ernst & Young
Scott Nichols
Partner
Sydney
17 September 2020
A member firm of Ernst & Young Global Limited
Liability limited by a scheme approved under Professional Standards Legislation
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Other information
Other information
Mineral Resources and Ore Reserves
Summarised below are the current Mineral Resources and Ore Reserves for the South Basin at ioneer’s 100%-owned
Rhyolite Ridge Lithium-Boron Project in Nevada, USA.
Following completion of the DFS program, ioneer released the lithium-boron (searlesite) Mineral Resource & Ore Reserve
Estimates tabulated below.
Summary of 2020 Mineral Resource & Ore Reserve Estimates Rhyolite Ridge Lithium-Boron Project
Metric
Tonnes
Li
Grade
B
Grade
Equivalent Grade
Equivalent
Contained Tonnes
(Mt)
(ppm)
(ppm)
Li2CO3
%
H2BO3
%
Li2CO3
kt
H2BO3
kt
Mineral Resource
Measured Resource
Indicated Resource
Measured and Indicated Resource
Inferred Resource
Total Mineral Resource
Ore Reserve
Proved Reserve
Probable Reserve
Total Proved and Probable Ore
Reserve
39.0
88.0
127.0
19.5
146.5
29.0
31.5
60.0
1,700
1,550
1,600
1,600
1,600
1,900
1,700
14,550
14,150
14,270
13,800
14,200
16,250
14,650
1,800
15,400
0.9
0.8
0.8
0.9
0.9
1.0
0.9
1.0
8.3
8.1
8.2
7.9
8.1
9.3
8.4
8.8
360
730
3,240
7,110
1,090
10,350
170
1,530
1,250
11,890
290
280
2,700
2,620
580
5,310
Note: Totals may not add due to rounding. Mineral Resources reported on a dry in-situ basis.
Golder Associates Inc. (‘Golder’) estimated the Ore Reserve and Mineral Resource and provided the mining study for the
Rhyolite Ridge Definitive Feasibility Study (‘DFS’).
The 2020 Mineral Resource is similar to the 2019 Mineral Resource and is now estimated to contain:
•
•
146.5mt at 1,600ppm lithium (equivalent to 0.9% lithium carbonate) and 14,200ppm boron (equivalent to 8.1%
boric acid)
1.2mt of equivalent lithium carbonate and 11.9mt of equivalent boric acid.
Lithium grades are highest in the southwest portion of the South Basin, where the planned Stage 1 quarry of the DFS is
located. The Stage 1 quarry will source ore exclusively from the Proved Ore Reserve detailed below.
The Ore Reserve is now estimated to contain:
•
60.0mt at 1,800ppm lithium (equivalent to 1.0% lithium carbonate) and 15,400ppm boron (equivalent to 8.8% boric
acid)
• Containing 0.6mt of equivalent lithium carbonate and 5.3mt of equivalent boric acid.
Approximately half of the Ore Reserve is now classified as Proved, the highest confidence category, with lithium and boron
grades in the Proved Reserve being higher than those in the Probable Reserve.
The 60mt Ore Reserve provides the foundation for a very long mine life at the Rhyolite Ridge Project, with clear potential for
expansion and extension further underpinned by the 146mt Mineral Resource.
Importantly, the planned Stage 1 quarry is exclusively Proved Reserves with higher than average lithium grades which will
provide higher cash flow in the early years of the Project.
The lithium-boron mineralisation remains open, particularly to the south where it continues to shallow and is generally
higher in grade, and we expect further increases to Resources and Reserves with additional drilling.
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IONEER LTD 2020 ANNUAL REPORT 76
ioneer Annual Report 2020
Glossary and Abbreviations
B
Boron
Carbonate minerals
Calcite and dolomite
DFS
H2BO3
GSC
INR
Definitive Feasibility Study
Boric acid
Global Geoscience Limited
ioneer Ltd
K-feldspar
Potassium feldspar
km
kt
K2SO4
Li
Li2CO3
LCE
mt
Mt
PFS
ppm
Kilometre
Kilotonne
Potassium sulphate
Lithium
Lithium carbonate
Lithium carbonate equivalent
Million tonnes
Metric tonnes
Pre-Feasibility Study
Parts per million
Searlesite
Sodium borosilicate mineral
Sepiolite
Magnesium silicate
IONEER LTD 2020 ANNUAL REPORT 77
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Other information continued
Schedule of tenements
As at 30 June 2020
Project
Country
Tenement ID
Tenement Name
Area
(km2)
Interest at 30
June 2020
Rhyolite Ridge
Rhyolite Ridge
Rhyolite Ridge
Rhyolite Ridge
Rhyolite Ridge (1)
SM
GD
CLD
New Morenci
Tokop
Tokop (1)
Tokop (1)
USA
USA
USA
USA
USA
USA
USA
USA
USA
USA
USA
USA
NMC1118666
NMC1117360
NMC1171536
NMC1179516
NMC 1129523
NMC1166813
NMC1166909
NMC1167799
AMC393550
NMC883619
NMC285234
NMC814692
NLB claims (160)
SLB claims (199)
SLM claims (122)
RR claims (65)
BH claims (81)
SM claims (96)
GD claims (13)
CLD claims (65)
MP claims (2)
TK claims (73)
Path Patents (11)
Path Unpatented (5)
13
16.5
9.7
5.4
7
7.7
1.1
5.2
0.12
4.82
0.74
0.4
100%
100%
100%
100%
0%
100%
100%
100%
100%
100%
0%
0%
(1) There is an option to purchase 100%
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IONEER LTD 2020 ANNUAL REPORT 78
ioneer Annual Report 2020
Shareholder and ASX information
Shareholder & ASX information
Information relating to shareholders at 14 September 2020 (per ASX Listing Rule 4.10)
Issued capital
The Company has 1,681,913,032 fully paid shares on issue.
Options on issue including holders of more than 20%
The Company has on issue 43,738,028 options and 7,875,490 Performance rights.
There are no listed options or performance rights.
ASX listing
Listed on the Australian Securities Exchange
19 December 2007
ASX Code: INR (previously GSC)
ABN: 76 098 564 606
Voting rights
There are no restrictions on voting rights. On a show of hands every member present or by proxy shall have one vote
and upon a poll each share shall have one vote. Where a member holds shares, which are not fully paid, the number of
votes to which that member is entitled on a poll in respect of those part paid shares shall be that fraction of one vote
which the amount paid up bears to the total issued price thereof. Option holders have no voting rights until the options
are exercised.
Top 20 shareholders as at 14 September 2020
Name
Shares
%
HSBC Custody Nominees (Australia) Limited - GSCO ECA
Citicorp Nominees Pty Limited
HSBC Custody Nomiees (Australia) Limited
JP Morgan Nominees Australia Pty Limited
Holdrey Pty Ltd
Mopti Pty Limited
Ransdale Investments Pty Ltd
Vista Grove Investments Pty Ltd
Lithium Investors Americas LLC
UBS Nominees Pty Ltd
Kolley Pty Ltd
FNL Investments Pty Ltd
Mr Darien Charles Jagger
Investment Holdings Pty Ltd
White Swan Nominees Pty Ltd
BNP Paribas Nominees Pty Ltd
Deck Chair Holdings Pty Ltd
Mahsor Holdings Pty Ltd
Quality Life Pty Ltd
Kembla No 20 Pty Ltd
Total Securities of Top 20 holdings
160,744,666
136,309,325
108,347,723
79,642,671
66,800,000
55,591,402
43,500,000
37,011,705
31,600,000
22,492,970
21,717,000
20,000,000
20,000,000
20,000,000
19,964,713
19,360,122
18,500,000
18,179,943
16,624,590
15,900,000
9.557%
8.104%
6.442%
4.735%
3.972%
3.305%
2.586%
2.201%
1.879%
1.337%
1.291%
1.189%
1.189%
1.189%
1.187%
1.151%
1.100%
1.081%
0.988%
0.945%
932,286,830
55.430%
IONEER LTD 2020 ANNUAL REPORT 79
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Shareholder & ASX information
Distribution of shareholders
1 - 1000
1,001 - 5,000
5,001 - 10,000
10,000 - 100,000
100,001 - over
Holders
Total Units
98
531
524
12,521
1,718,303
4,300,539
1,872
79,090,939
928
1,596,790,730
3,953
1,681,913,032
Unmarketable parcels
Minimum $500 parcel at $0.10 per unit
Minimum parcel size
Holders
5,000
542
Substantial shareholders
The following are substantial shareholders registered as at 14 September 2020.
Name
Centaurus Capital LP
Shares
%
154,558,476
9.189%
On-market buy-back
There is no current on-market buy-back.
Competent Persons Statement
In respect of Mineral Resources and Ore Reserves referred to in this presentation and previously reported by the
Company in accordance with JORC Code 2012, the Company confirms that it is not aware of any new information or
data that materially affects the information included in the public report titled “Rhyolite Ridge Ore Reserve Increased
280% to 60 million tonnes” dated 30 April 2020 and released on ASX. Further information regarding the Mineral
Resource estimate can be found in that report. All material assumptions and technical parameters underpinning the
estimates in the report continue to apply and have not materially changed.
In respect of production targets referred to in this presentation, the Company confirms that it is not aware of any new
information or data that materially affects the information included in the public report titled “ioneer Delivers Definitive
Feasibility that Confirms Rhyolite Ridge as a World-Class Lithium and Boron Project” dated 30 April 2020. Further
information regarding the production estimates can be found in that report. All material assumptions and technical
parameters underpinning the estimates in the report continue to apply and have not materially changed.
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IONEER LTD 2020 ANNUAL REPORT 80
Shareholder and ASX information continuedioneer Annual Report 2020
Corporate directory
Directors
James D. Calaway
Executive Chairman
Bernard Rowe
Managing Director
Julian Babarczy
Non-Executive Director
Alan Davies
Non-Executive Director
Patrick Elliott
Non-Executive Director
John Hofmeister
Non-Executive Director
Company Secretary
Ian Bucknell
Auditor
Ernst & Young
200 George Street
Sydney NSW 2000
Offices
Sydney (Registered Office)
Suite 503
140 Arthur Street
North Sydney NSW 2060
Australia
Telephone: +61 (2) 9922-5800
Website:
e-mail:
www.ioneer.com
info@ioneer.com
Reno
9460 Double R. Blvd,
Reno Nevada 89521
United States of America
Share Registrar
Boardroom Pty Limited
Grosvenor Place
Level 12, 225 George Street
Sydney NSW 2000
Telephone: 1300 737 760
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