annual report
2021
ioneer Ltd
ABN 76 098 564 606
we are ioneer
Providing the materials for a sustainable and thriving
planet
• Demonstrated potential to become a world-class lithium-boron producer
• DFS and subsequent detailed engineering continues to confirm Rhyolite
Ridge will become 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 located in the US in a tier-one mining jurisdiction
• Completed offtake for most of the Project’s boron production and a first
binding lithium offtake
• Advanced discussions with potential strategic 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 and processing partners including
Fluor, Veolia, SNC-Lavalin, DuPont, FLSmidth, Caterpillar and Golder
AGM
The ioneer Annual General Meeting will
be held at 10.00am AEST on Friday,
5 November 2021.
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/304753785
ioneer Annual Report 2021 FY21 highlights
CONTENTS
Chairman’s Letter .........................................2
Our Story and Purpose ...............................4
Company Overview ....................................6
Operational Report .....................................8
Environmental and
Social Responsibility Report ......................12
Board of Directors ......................................22
Senior Executives .......................................23
Directors’ Report .......................................24
Auditor’s Independence Declaration .........31
Remuneration Report .................................32
Financial Statements ..................................51
Directors’ Declaration ................................80
Independent Auditor’s Report ...................81
Other Information ......................................86
Shareholder and ASX Information .............89
Corporate Directory ...................................91
1
Lithium
Offtake
Agreement
Signed binding lithium
offtake agreement
with Korea’s EcoPro
Innovation Co
Permitting
for Project
• Issued State Class II
Air Quality Permit
• Issued State Water Pollution
Control Permit
• Submitted Plan of Operation
– main federal permit
application
Funding
A$80 million raised
to fund Project to
Final Investment
Decision
Engineering
• US$122-148 million in major
work packages under negotiation
• Work continuing with
design increasing from 30%
(DFS level) to 50% complete
chairman’s letter
Rhyolite Ridge is extremely well-positioned to help
enable this critical transition as the only DFS-level
project in the US and the most advanced lithium
development project in North America.
James D. Calaway
Executive Chairman
Dear Shareholders,
2021 has been another year of great effort
and significant progress by team ioneer.
It is with great pleasure that we present
the Company’s 2021 Annual Report to our
shareholders.
The Company delivered on a number
of key milestones to significantly
advance Rhyolite Ridge towards the
commencement of construction, including
significant progress towards finalising
project engineering, obtaining important
permits and environmental approvals, and
securing funding.
Specifically, our expanding internal
engineering team and support contractors
progressed engineering and design work
for Rhyolite Ridge to approximately 50%
completion, with up to US$148 million in
major work packages now under contract
or advanced stages of negotiation.
We received the State of Nevada Class II
Air Quality and Water Pollution Control
Permits, two of the three key permits we
need to start Project construction. The
sales and marketing team secured our first
binding lithium offtake supply agreement
with Korea’s EcoPro Innovation Co. Ltd,
the world’s second largest NCA cathode
materials manufacturer. The agreement
accounts for a third of our nameplate
annual lithium carbonate output for
the first three years of production, with
optimism to contract further lithium
chemicals production to various customers
in the short to medium term.
We have been deliberate in our work to
complete the strategic partner process.
We anticipated, given our understanding
of market conditions, that calendar year
2021 would be materially superior to
2020 to secure financing for the Project.
I’m pleased to report that this patience,
despite short term pressures to move
more quickly, is expected to be rewarding
for shareholders. We are now in the final
stages of negotiations with a strategic
partner and anticipate announcing that
party to the market in the third quarter
of calendar year 2021. Once the strategic
partnering process is completed, ioneer
will move, with the support of Goldman
Sachs, to secure the remaining capital
to enable the Project’s Final Investment
Decision.
In the March quarter we raised
A$80 million via a fully underwritten
institutional placement with strong
demand from new and existing
institutional investors. This was to ensure
we had the balance sheet to both support
our continued ramp up leading to the
start of construction, and to ensure that
potential strategic partners understood
that we had staying power. Strong
institutional demand saw us upsize
the placement from A$60 million to
A$80 million.
And we made considerable progress
towards a secondary listing of shares on
a major US stock exchange. We feel the
timing is right for us to begin the process
to increase our exposure to US markets
as we move to bring Rhyolite Ridge into
production.
The financial year brought a growing
sense of optimism and confidence in the
global lithium market. The rapid growth
of the electric vehicle sector in Europe
has been driven by a push on emissions
targets and major subsidies from French,
German and UK Governments. Sales
have exceeded expectations in parts
of Europe and have necessitated big
commitments from automakers. These
factors, combined with renewed efforts in
the Chinese domestic market, have firmly
shifted market sentiment and the lithium
price and demand outlook.
In the US, the Biden administration
has committed to a low carbon future
through the electrification of America’s
transport system and support of emission
reduction technologies. This is positive
for ioneer’s future as a US producer of
the key materials needed for lithium-ion
batteries to support America’s rapidly
growing electric vehicle sector. The Biden
administration is focused on developing
a domestic lithium-ion battery materials
supply chain to ensure the US can source
the materials it needs to meet its climate
targets around electrification of the
ioneer Annual Report 2021 3
Right:
Engineering rendering of
Rhyolite Ridge Processing Plant
Below:
Rhyolite Ridge Project area
late afternoon with the
white hill in the background
transportation system and in building
renewable energy infrastructure. ioneer
anticipates the new administration
will give strong support for domestic
projects, such as Rhyolite Ridge, which will
supply the critical minerals necessary to
execute on the administration’s emissions
reduction programs.
Rhyolite Ridge is extremely well-
positioned to help enable this critical
transition as the only DFS-level project
in the US and the most advanced lithium
development project in North America.
Rhyolite Ridge’s unique minerology
enables us to generate two important
revenue streams, with the significant
revenue from our 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.
We have always known that our
operations must meet the highest
standards of environmental stewardship
and sustainability. That understanding
and commitment informs everything
we do. Our Project is designed from all
perspectives to preserve the integrity of
our environment, including the air, water
and local flora and fauna. As one part of
that commitment to the environment, we
are continuing our efforts to ensure the
protection and preservation of Tiehm’s
buckwheat populations at Rhyolite
Ridge. We have delivered the most
comprehensive study of Tiehm’s buckwheat
ever undertaken and are working with
responsible agencies to develop a
Conservation Agreement that will ensure
the successful coexistence of the rare plant
and our environmentally critical project.
We are highly confident that the hard
science supports coexistence and thus final
permits, irrespective of the plant’s listing
status.
The financial year saw some significant
changes to our Board. After 17 years
of service, we thanked and farewelled
non-executive director Pat Elliott. Pat
made a significant and lasting contribution
to the Company.
In February 2021, we were delighted
to welcome Rose McKinney-James
and Margaret Walker to the Board,
whose respective expertise in ESG and
large-scale chemical plant construction
significantly strengthen our Board.
In May, the whole ioneer team was
deeply saddened at the passing of our
non-executive director, John Hofmeister.
John made a significant contribution to
ioneer, and to the US resources sector. We
were privileged to have him on our Board
for the time we did, and he is deeply
missed by all.
I wish 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, who have continued to
meet the challenge of demonstrating
excellence in execution and driving our
Project forward, despite the COVID-19-
related challenges we have faced this year.
Spirits are high, and the team remains
fully committed to our core mission to
make ioneer a leading, environmentally
responsible 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 your ongoing support.
I am optimistic about the coming year
in delivering on our objectives for the
Company and our shareholders.
With appreciation,
James D. Calaway
Executive Chairman
our story and purpose
OUR STORY
We are ioneer – a company intent on pioneering where and how our earth’s ions are resourced for a
sustainable future. This dedication drives us to be leaders in a new energy revolution. Our diverse team
brings expertise from the mining, chemical, processing, energy and finance industries. And together
we have pledged to improve how the vital materials for energy solutions are developed. At ioneer, we
understand the importance of being caretakers of our planet while ensuring every person is able to
enjoy the benefits of clean energy.
It is not easy to take a leadership role in tackling a global challenge, but we are up for this job. We do
this not just for ourselves and our families, but each generation to come. Because we believe that what
we leave behind tells the story of who we were and what we stood for. And it is our privilege to make a
positive contribution to the story of a sustainable planet.
ioneer Annual Report 2021
5
OUR PURPOSE
To responsibly provide the materials for a sustainable & thriving planet.
Our purpose is underpinned by ‘what we believe’ and ‘how we act’, commitments that are the heart of our
culture and how we work together to achieve our purpose.
WHAT WE BELIEVE?
HOW WE ACT?
• We believe that every individual is entitled to
• We recognise each of our actions has implications
affordable, clean energy
• We put our imaginations to work in service of better
• We have a responsibility to be custodians of
energy solutions
our planet
• What we do today will have consequences for
decades to come
• Doing good is the right thing to do
• We thrive when we are helping others to thrive
• We know our reputation is on the line every day
• We work for what is in the best interest of all
• We strive to make our actions match our words
company overview
ioneer is an emerging lithium-boron producer that is set to develop one of the
most attractive lithium projects globally. The Company’s 100%-owned Rhyolite
Ridge Lithium-Boron Project in Nevada, USA provides an important foundation
for ioneer to become a responsible and profitable producer of the materials
necessary for a sustainable future.
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. In 2021,
ioneer advanced engineering, was issued
two of the three key environmental
permits required for operations, signed
its first binding lithium offtake agreement,
and furthered strategic partnering and
debt funding discussions.
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
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, meaning resilience
through commodity cycles.
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, computers
and phones. ioneer is well-positioned to
capitalise on the lithium supply deficit
forecast to rapidly accelerate by 2024.
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.
At start up, lithium carbonate and boric
acid products will be produced at site,
differentiating this from other projects.
In time, lithium hydroxide will also be
produced at site.
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,
Veolia, SNC-Lavalin, DuPont, FLSmidth,
Caterpillar and Golder.
ioneer Annual Report 2021 STRATEGIC US LOCATION IN A TIER ONE MINING JURISDICTION
7
SATELLITE IMAGE OF THE RHYOLITE RIDGE PROJECT AREA SHOWING EXPANSION POTENTIAL
SOUTH BASIN
ADVANTAGES
1. COMPELLING PROJECT ECONOMICS
Long mine life with rapid payback of capital: 5.2 years from
first production
2. LOWEST COST LITHIUM PRODUCER
GLOBALLY
All in sustaining cash cost at the bottom of the global lithium
cost curve with co-production of boron
3. LARGE DEPOSIT
26-year mine life based on Reserves with expansion potential
4. WELL DEFINED PROCESS FLOWSHEET
Open pit, low cost, no new technology
5. LOW RISK LOCATION
US Advantage, mining friendly jurisdiction proximal to
Tesla Gigafactory and California export ports.
6. SUSTAINABLE PROJECT
Small footprint, low emissions, low water usage
operational report
“The signing of our first lithium carbonate offtake agreement
and the award of two major project permits capped off a
year of significant progress in the development of Rhyolite
Ridge. We move toward Project construction against the
backdrop of invigorated US support for lithium’s role in
renewable and emission reduction technologies, and
I’m enthusiastic for the year ahead.”
Bernard Rowe
CEO and Managing Director
Significant advancement of Rhyolite Ridge has seen ioneer brought closer to confirming
a Final Investment Decision on the Project, which we continue to anticipate will be
made in CY 2022. The achievement of some major milestones in the year demonstrated
confidence in the Project well beyond FY 2020’s Definitive Feasibility Study, which
showed Rhyolite Ridge’s potential as a low cost, long-term domestic source of
high-quality lithium in the US. Key points of progress include the signing of our first
lithium carbonate offtake agreement, the receipt of two key state Project permits, an
oversubscribed A$80 million placement, and the award of major engineering design and
work contracts. Our strategic partnering and funding discussions are at an advanced
stage, and finalising these negotiations is a priority for ioneer in the new financial year.
Each key work stream is discussed in detail below.
SALES & MARKETING
FIRST LITHIUM OFFTAKE
AGREEMENT SIGNED
In June 2021, the Company announced
that it had signed a three-year, binding
offtake supply agreement with EcoPro
Innovation Co. Ltd (EcoPro), which is
the world’s second-largest cathode
manufacturer. ioneer will supply EcoPro
with up to 7000 tonnes per annum (tpa) of
lithium carbonate. The volume comprises
an initial and firm 2000 tpa and an
additional and optional 5000 tpa (subject to
mutual agreement, no later than Q1 2022).
The offtake agreement is conditional on
ioneer reaching a final investment decision
(FID) on Rhyolite Ridge. The total offtake
volume represents ~34% of ioneer’s
lithium carbonate production in the first
three years of operation.
EcoPro expects to convert ioneer’s
lithium carbonate into high purity lithium
hydroxide and then into battery cathodes.
The cathodes are used in lithium-ion
batteries, which are sold to electric
vehicle and renewable infrastructure
manufacturers.
Discussions with other potential lithium
offtake partners continued in the year.
ioneer anticipates conclusion of these
discussions in the second half of CY 2021.
BATTERY GRADE HYDROXIDE
In the year, we were very pleased to report
our metallurgy and process engineering
team successfully converted lithium
carbonate into battery grade lithium
hydroxide at our Rhyolite Ridge pilot
plant. This was a significant milestone
in our lithium chemicals production and
demonstrated ioneer’s ability to provide
high purity technical grade lithium
carbonate and battery grade lithium
hydroxide to customers. Reaching the
requisite product specifications for our
target customers allowed ioneer to advance
discussions with potential offtake partners.
BORIC ACID OFFTAKE
ioneer has three offtake agreements in
place for its boric acid production, which
were announced in FY 2020 and together
account for 100% of ioneer’s first year of
boric acid production and over 80% of
years two and three boric acid production.
ioneer Annual Report 2021 9
Above: Engineering rendering of Rhyolite Ridge Processing Plant
Below: Lithium Hydroxide, Lithium Carbonate and Boric Acid end products produced in the Pilot Plant
Just post FY 2021-end, we were issued
a Water Pollution Control Permit by
the Nevada Division of Environmental
Protection following a detailed Project
review, which included an assessment of
the impact to surface and subsurface water
during and after closure of the operation.
Rhyolite Ridge is the only lithium
development project to have received the
dual permits from the Nevada Division of
Environmental Protection (NDEP).
PLAN OF OPERATIONS SUBMITTED
The third key permit, still outstanding, is
the Plan of Operation (Plan) that must be
approved by the federal US Department
of the Interior (DOI).
The Plan requires assessment under
the National Environmental Policy Act
(NEPA) process, which includes public
consultation and preparation of an
Environmental Impact Statement (EIS).
In March 2021, the Nevada State Bureau
of Land Management (BLM) sought
DOI approval to publish a NOI for the
Rhyolite Ridge Project. This timing
coincided with a period of transition
to the Biden administration in which
no permit assessments or publication
of permitting decisions were expected
for an anticipated 60 days. Since the
expiration of this period, there has been
ongoing delay to the publication of
Notices in the federal register, including
for Rhyolite Ridge.
The contracts include:
1. A binding offtake agreement with
Dalian Jinma Boron Technology Group
Co. Ltd for 105,000 tonnes per annum
of boric acid for five years and include a
distribution agreement for the territories
of China and Taiwan.
2. A three-year sales and distribution
agreement with Kintamani Resources Pte
Limited for the territories of Malaysia,
Indonesia, Singapore, Thailand, Vietnam
and the Philippines.
3. A three-year sales and distribution
agreement with Boron Bazar Limited
(Boron Bazar) for the territories of
Bangladesh, India, Pakistan and Myanmar.
STATE AND FEDERAL
PERMITTING PROCESS
ioneer made significant progress in
obtaining key permits necessary to
commence construction at Rhyolite Ridge.
In June 2021, ioneer received a Class II
Air Quality Permit issued by the State
of Nevada Division of Environmental
Protection Bureau of Air Pollution Control.
The issuance of the permit represented
a significant milestone for Rhyolite Ridge
and supports our detailed plans for a
processing plant with low emissions and
minimal hazardous air pollutants. After
regulatory review and a public comment
period, Rhyolite Ridge is the first project in
Nevada with sulphuric acid production to
receive a Class II Air Quality permit.
COMPELLING PROJECT ECONOMICS CONFIRMED BY DFS
US$1.27B
AFTER-TAX NPV
(8% REAL)
~21%
UNLEVERED
AFTER-TAX IRR
US$193M
ANNUAL AFTER-TAX
CASHFLOW
operational report continued
We remain in contact with relevant
regulators regarding the publication
timeframe. ioneer remains hopeful that
the NOI will be published in the near term.
Upon publication of the NOI, the
BLM will hold a series of public meetings
to provide a description of the Project
and allow for public comment. Comments
are then collated and reviewed with
potential changes and mitigants made
to the Plan in response to comments.
This process ultimately culminates in
an EIS and a Record of Decision (ROD).
From the publishing of a NOI through to
the Record of Decision (ROD) can take up
to 12 months.
Once the Plan of Operation has been
approved via a Record of Decision,
construction of the Rhyolite Ridge Project
can begin.
TIEHM’S BUCKWHEAT
PRESERVATION
ioneer furthered its protection work on
Tiehm’s buckwheat populations present
at Rhyolite Ridge. We have undertaken
considerable work to advance data
and information allowing protection
and preservation programs for Tiehm’s
buckwheat to be established. The
additional information collected about
Tiehm’s buckwheat and similar buckwheat
species provides evidence-based support
for our protection programs.
The protection of Tiehm’s buckwheat
is firmly incorporated into our Project
environmental plans and approvals,
and we will ensure the species is managed
and protected. ioneer’s buckwheat
management and conservation plan
incorporates a strategy to minimise
impact and to expand buckwheat habitat.
Our research gives the Company high
confidence we can ensure the continuance
of a viable population through proven
mitigation measures to address the
impact from ioneer’s operations, as well
as serious natural threats such as extreme
drought and herbivory that threaten
the plant population regardless of the
Company’s operations.
ENGINEERING
• Engineering work continuing with
design increasing from 30% (DFS level)
to 50% complete, depending on area of
the operation
• First vendor engineering packages
issued for bid
• Engineering work progressed with
US$122-148 million in major work
packages under negotiation
• ioneer anticipates being construction
ready from an engineering and
financing perspective in 2H 2022
MOU SIGNED WITH
CATERPILLAR, INC
In October 2020, we were pleased to
announce partnership Caterpillar, Inc as
our exclusive heavy equipment partner
for the Rhyolite Ridge Project.
The equipment and services Caterpillar
will supply during the first five years of
operation are valued at approximately
US$100 million. Caterpillar will also
provide finance solutions for the
equipment through Caterpillar Financial
Services. The equipment supply and
services, and finance solutions are
subject to a final investment decision
being taken on the Project and definitive
legal documentation.
The partnership will operate through
Nevada-based Cashman Equipment,
which may provide technicians to
assemble and service equipment,
operator trainers to assist with the
most efficient machine operations, and
product support consultants to facilitate
a comprehensive Maintenance and Repair
Contract (MARC) agreement.
Through the year, ioneer and Caterpillar
continued work on a study to consider
early introduction of autonomous haul
trucks at Rhyolite Ridge to improve safety,
productivity and reduce the physical and
environmental footprint of a mine.
ioneer Annual Report 2021
11
US$422M
ANNUAL REVENUE
US$785M
ESTIMATED CAPEX
5.2 years
RAPID PAYBACK
FLSMIDTH AWARDED ENGINEERING
AND EQUIPMENT CONTRACT
Post year-end, ioneer awarded a major
engineering and equipment supply
contract to FLSmidth.
FLSmidth has already commenced work
on product engineering for the equipment
packages, which include crushing and
material handling equipment, plus lithium
carbonate and boric acid dryers for
Rhyolite Ridge.
The contract has been awarded on
a limited notice to proceed (LNTP)
basis, with the supply of the equipment
packages being conditional on a final
investment decision on the Project.
FLSmidth has also initiated discussions
between Denmark’s Export Credit Agency,
EKF and ioneer to discuss potential
financing options.
STRATEGIC PARTNERING &
FUNDING DISCUSSIONS
Over the last 12 months, ioneer has made
progress on its funding solution process,
with the support of its financial advisors.
STRATEGIC PARTNERING
ioneer continued a strategic partner
process, assisted by Goldman Sachs. We
anticipate the process will be concluded
in the September 2021 quarter, with
preparation of definitive investment
documents underway. ioneer anticipates
that a strategic partner transaction should
deliver the majority of the required equity
component of the Rhyolite Ridge funding
stack, which will lead to an acceleration
of debt and trade finance discussions
that have been positively progressing for
many months.
DEBT DISCUSSIONS
In a separate workstream, the Company
continues to engage with a number of
potential debt funders and is encouraged
by feedback to date. This includes
working with vendors to assess Export
Credit Agency (ECA) financial support,
as recently disclosed with FLSmidth and
Denmark’s ECA, EKF.
We note increased interest in the sector
and the Project as market participants
focus on the growing importance of
security of lithium supply and growing
US and European EV demand.
EQUITY RAISING
In March 2021, ioneer completed
a fully subscribed underwritten
institutional placement to professional
and sophisticated investors, raising
A$80million at A$0.38 per share. The
Placement saw strong demand from
existing shareholders and new investors
including high-quality international and
domestic institutions. The proceeds are
being utilised to progress development
of Rhyolite Ridge, including advancing
detailed engineering and vendor
engineering to construction ready status,
environmental, research and consulting
expenses, discretionary substantive
pre-construction activities, along with
working capital and general purposes.
SECONDARY LISTING OF SHARES ON
A MAJOR US STOCK EXCHANGE
Since announcing its intention to pursue
a US listing in response to significant
demand from US-based investors for
lithium and battery minerals-related
investments, ioneer has completed its
initial evaluation of a secondary listing of
its shares on a major US stock exchange.
The secondary listing is anticipated to
take place in the second half of CY 2021,
in line with ioneer’s longer-term strategy
of increasing exposure to US markets,
including access to the deep US capital
markets.
I’m extremely pleased with the milestones
achieved this year. We are well on our
way to being construction ready and are
focused on securing the necessary final
project approvals in the short term, along
with strategic and financial partnerships.
I want to thank and acknowledge my
talented and hardworking team in
delivering this progress and look forward to
updating shareholders on further progress.
Bernard Rowe
CEO and Managing Director
environmental and
social responsibility report
Our vision
We see a world in which our global population, our environment and future generations
are thriving. Where we responsibly and profitably provide the materials necessary for a
sustainable planet.
ioneer is committed to being a part of the
global energy transformation, essential to
addressing the threat of climate change.
The materials we will produce are essential
to enabling the transition to cleaner
energy. Shortages of the materials we
will produce threaten the transition both
in time and costs. We are mindful of this
supply chain risk and are taking all steps
to responsibly develop these resources to
help sustain our planet.
We accept this responsibility with the
understanding that while our production
will have global environmental benefits,
we are also becoming an important part
of our surrounding communities and need
to demonstrate right behaviours and
build trust. We embark on this journey
knowing that our success depends upon
listening to the needs and aspirations of
those living in the regions we operate in,
and to collaboratively strengthen those
communities through our operations
and support.
and transparent ESG reporting. To
this end, in late FY 2021, the Board
established an ESG Committee to assist
it in the selection of these standards and
reporting procedures, with the objective
to drive operational improvement and to
monitor material ESG issues, risks, and
performance of the Company.
As we progress Rhyolite Ridge toward
construction and operation, we are
actively working to determine what
best-in-class sustainability practices
and reporting framework will be used
by the Company to drive continuous
improvement. We are committed to
providing all stakeholders with timely
This year, we are pleased to build on the
sustainability pillars established in 2020 by
adding Health and Safety as a new pillar.
These sustainability pillars will drive our
efforts for years to come.
ioneer Annual Report 2021 13
Corporate Governance
Global Energy
Transition
Environment
People &
Community
Health & Safety
CORPORATE
GOVERNANCE
Good corporate governance is the
basis to delivering on our corporate
strategy and essential to operating
responsibly and ethically.
Our experienced Board takes its
responsibilities seriously and seeks to instil
a culture of innovation, care, commitment,
and responsibility. The Board is the
Company’s highest governing authority.
It includes a majority of independent,
non-executive directors. The skills,
expertise, experience, diversity, size and
composition of our Board is reviewed
regularly.
An established corporate governance
framework outlines how our Board meets
its commitment to good governance. The
framework was developed with reference
to the recommendations set out in the
ASX Corporate Governance Council’s
Corporate Governance Principles and
Recommendations 4th edition (Principles
and Recommendations).
Our Board is ultimately responsible and
accountable for our governance, risk
and compliance frameworks, including
ensuring compliance with all policies and
procedures, values, and various legislative
and regulatory requirements.
There were no reported breaches of
relevant policies and full compliance
with legal and regulatory obligations was
maintained in the period. The Corporate
Governance Statement for FY 2021 can be
found at www.ioneer.com
During FY 2021, our Board reviewed
corporate governance documentation
and, where appropriate, updated policies
and practices. This is an annual practice
that ensures our governance processes
are in line with expectations in the current
operating environment. In addition, the
Board established an Environmental,
Social and Governance (ESG) Committee
to assist the Board to monitor material
issues, risks and performance of the
Company in respect of health, safety,
environment, and community.
Policies within the Company’s corporate
governance framework include the
Code of Conduct, Board Charter, Board
Committee Charters, Disclosure, Diversity,
Trading, Shareholder Communications,
Whistleblower and anti-bribery and
corruption. All policies and practices are
reviewed periodically and updated to
ensure they are supportive of the current
business environment and any changes to
ASX Listing Rules. Full versions of current
Corporate Governance Policies can be
found at www.ioneer.com
The Code of Conduct sets out the
behaviours expected from both employees
and contractors in their dealings with each
other, shareholders, all other stakeholders,
and the broader community. It also
encourages reporting of any suspected or
known unethical practices. New employees
are required to read the Code of Conduct
and commit to conducting themselves
accordingly. The Code of Conduct is also
included as part of contractor obligations
in contracts.
Global Borates Demand by End Use
Borosilicate
Glass
Other
LCD/TFT
19%
8%
5%
17%
Insulation
11%
Industrial/
Chemical
12%
Agriculture
16%
12%
Frits/
Ceramics
Textile
Fiber Glass
According to Benchmark Mineral
Intelligence, 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 US and Europe, there is significant
demand growth 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.
BORIC ACID
Boric acid 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 a primary material for
clean technologies and sustainability
and is only produced in a few locations
globally. It is used in more than 300
applications, including home insulation,
permanent magnets for electric cars and
wind turbines, and advanced glass for
televisions, computers, handheld devices
and 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’s output, demand
is expected to exceed supply by 2024,
supporting the assumption the market
needs additional capacity.
Through the development of Rhyolite
Ridge, ioneer will unlock much needed
supply of lithium and boric acid to
support decarbonisation and clean energy
solutions across a wide range of end uses
and geographies.
GLOBAL ENERGY
TRANSITION
Producing the materials for a
sustainable future
The reality of climate change is rapidly
changing the way in which the world
generates, stores, uses and distributes
energy.
The US Government has increasingly
emphasised the need for the
electrification of the country’s
transportation fleet to reduce greenhouse
gas emissions. A domestic manufacturing
supply chain, from raw materials to car
production and ultimately through to
recycling allows the US to reach this goal
while maintaining natural security, creating
high-quality jobs, fostering social justice
and ensuring compliance to rigorous
environmental standards. Electrification
requires lithium, and Rhyolite Ridge will
be a secure source of compounds ready
to be utilised in the lithium-ion battery
supply chain.
ioneer is set to become a globally
significant, low-cost supplier of lithium
carbonate, lithium hydroxide, and boric
acid, which are vital materials to produce
end products that reduce greenhouse
gas emissions and create a more
sustainable future.
LITHIUM
Lithium is a critical raw material to enable
technologies that reduce greenhouse gas
emissions. It is an irreplaceable component
for current and next-generation batteries
essential to the mass adoption of electric
vehicles and electric battery storage
systems that lead to greenhouse gas
emission reductions.
As a result of the global push toward
decarbonisation and green energy
solutions, the global lithium market has
also been expanding rapidly. In recent
years, the compound annual growth rate
of lithium for battery applications was over
22% and is projected by Roskill to be more
than 20% per year to 2028.
ioneer Annual Report 2021
15
ENVIRONMENT
Environmentally responsible operation
The geology and mineralisation of Rhyolite Ridge is unique in
the world. ioneer is committed to extracting and processing its
lithium and boron resources in an environmentally responsible
manner. Environmental stewardship is at the core of ioneer’s
mission in developing the Rhyolite Ridge Project, which will
produce large quantities of the materials critical to reducing
greenhouse gas emissions.
LOW EMISSIONS
We will produce lithium carbonate, lithium hydroxide and boric
acid using off-grid, energy-neutral 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 full cycle pilot
plant testing, and extensive process design and verification work
by the Project’s outstanding engineering team, led by Fluor
Corporation as the Project EPCM.
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.
Above: Electric Vehicles are expected to
drive double digit growth in lithium demand
REDUCED WATER CONSUMPTION
Water use associated with ioneer’s production of materials is
extremely low compared to other lithium producers, especially
those that utilise brine extraction and solar evaporation.
The design is optimised to reduce water demand and will recycle
a majority of the water used in the refining process. We will
recycle over 50% of our process water.
WILDLIFE AND FLORA PROTECTION
A key environmental baseline study completed for the Rhyolite
Ridge Project’s Plan of Operation focused on characterising the
flora and fauna of the area. Amongst other species, this study
concentrated on Tiehm’s buckwheat, a plant designated as a
Bureau of Land Management (BLM) Sensitive Species. ioneer has
developed and implemented a comprehensive protection plan
that includes strict measures to ensure that Tiehm’s buckwheat
and its habitat are protected and that the potential impacts
caused by development of the Project are minimised. In January
2021, ioneer, in coordination with the US Fish and Wildlife Service
(FWS) and BLM, commenced development of a Conservation
Agreement, aimed at developing and implementing additional
conservation actions.
Low-energy consumption, low emissions, substantially reduced
water usage, a relatively small surface footprint and clear plans to
manage wildlife and flora, contribute to Rhyolite Ridge being a
sustainable, environmentally responsible operation.
CASE STUDY: TIEHM’S BUCKWHEAT
Tiehm’s Buckwheat Protection and Conservation Efforts
Tiehm’s buckwheat colonising historical exploration trenches at Rhyolite Ridge
Tiehm’s buckwheat (Eriogonum tiehmii) is a perennial forb first identified at Rhyolite
Ridge in 1983. No other occurrences of the plant are known, at this time, in Nevada.
It is similar in form to other mat buckwheats in the Silver Peak Range, such as Shockley’s
buckwheat (Eriogonum shockleyi) and cushion buckwheat (Eriogonum ovalifolium)
– both common in Nevada and the western United States. Tiehm’s buckwheat is
classified as a BLM Sensitive Species, meaning the species requires special management
to ensure its protection and preservation. ioneer has developed and implemented a
BLM approved comprehensive Tiehm’s Buckwheat Protection Plan that includes strict
measures that have been in place since ioneer commenced exploration at Rhyolite Ridge
in 2016. The goal of these voluntary measures is to ensure that the plant and its habitat
are avoided where possible and protected.
ioneer began funding academic research
on Tiehm’s buckwheat in 2018 with
University of Nevada, Reno (UNR), and
other institutions. ioneer is committed
to the long-term viability of Tiehm’s
buckwheat and has spent over $1,250,000
on research and developing protection
measures over the past three years.
In the first quarter of 2021, ioneer, in
coordination with USFWS and BLM,
commenced development of a Candidate
Conservation Agreement, aimed at
developing and implementing additional
conservation actions. In addition to
regulatory bodies, ioneer is actively
working with outside experts who are
familiar with similar conservation plans in
the western U.S. and other stakeholders
such as The Conservation Fund-Nevada
to develop a comprehensive set of
Tiehm’s buckwheat conservation actions.
Mitigation, Conservation and Uplift
Strategies with Scientific Foundation
With the increase in development of
the desert southwest there are many
recent associated efforts to restore
habitat for environmental mitigation and
enhancement purposes. These projects
have shown that with a scientific based
approach, detailed planning and
guidance, and qualified implementation
crews, this type of restoration can
not only meet, but can exceed the
performance criteria required by the
regulatory agencies.
ioneer is confident that through a
combination of avoidance, propagation
and translocation, we can ensure the
long-term viability of the plant population.
This is backed by solid scientific data
and research. The company has made
an extensive effort to design a mine plan
that has minimum impact on currently
occupied Tiehm’s buckwheat habitat and
that can be built to provide a stable and
safe operation.
Based on supporting scientific data, we
are highly confident that the Rhyolite
Ridge Tiehm’s Buckwheat population and
the proposed lithium-boron production
facility can co-exist to help support a
future for all living things.
ioneer Annual Report 2021 17
Above: Tiehm’s buckwheat seedlings UNR greenhouse – January 2020
Above: Tiehm’s buckwheat seedlings in flower – June 2021
6. Enhancing knowledge with
research – ioneer has worked with
UNR to conduct a propagation and
transplant trial for Tiehm’s buckwheat.
The project successfully grew over
1,000 Tiehm’s buckwheat seedlings
in the UNR greenhouse from seeds
collected at Rhyolite Ridge, which were
planted in three test sites in the Project
Area. As the first study of its type to be
completed for Tiehm’s buckwheat and
the first study of any kind on the plant in
over 10 years, UNR’s report represents a
major step forward in the understanding
of this species.
How we are protecting Tiehm’s
buckwheat
ioneer has always been firmly committed
to the long-term viability and reduction
of the risk of species extinction of Tiehm’s
buckwheat and has contributed significant
funding on research and developing
protection measures. The Company has
worked to protect, conserve and expand
this sensitive species in its natural habitat,
including:
1. Minimising potential impacts – ioneer
completed a full survey of the existing
Tiehm’s buckwheat population prior to
any field activities, conducted all work in
consultation with regulatory authorities
and guidelines and have taken great care
to avoid the buckwheat subpopulations.
2. Working with regulators – ioneer
submitted a robust Project Plan of
Operations to the BLM, which included
two years of research and protection
strategies formulated by a collaboration
of experts. Implementing the proposed
measures described in the Plan will protect
the air quality, biology, groundwater, soils,
and rangeland around the Rhyolite Ridge
facility – not just maintaining the Tiehm’s
buckwheat habitat but improving its ability
to survive and thrive.
3. Establishing a protection plan –
ioneer has developed and implemented
a BLM-approved comprehensive Tiehm’s
buckwheat Protection Plan that includes
strict measures that have been in place
since ioneer commenced exploration at
Rhyolite Ridge in 2016. The goal of these
voluntary measures is to ensure that the
plant and its habitat are protected, and
that the potential impacts caused by
development of the Project are minimised.
4. Developing a conservation
agreement – ioneer is actively working
with experts, regulators and stakeholders
to develop a comprehensive Tiehm’s
buckwheat conservation plan that will
be implemented during the length of
operations. This plan is modelled upon
successful strategies for protection of
other rare plants and habitats.
5. Engaging buckwheat specialists
– ioneer has retained the services of
academic and commercial experts to
augment our biological team and develop
protection measures that will ensure
the persistence of the plant in natural
conditions.
PEOPLE & COMMUNITY
Our people
We strive to create a work environment
where everyone feels safe, valued and
empowered.
At ioneer, we aim to build a culture that
reflects our values of being an innovative,
caring, committed and a responsible
organisation.
A collaborative work environment has
contributed to the Company’s many
achievements and milestones at a
corporate and operational level. This
includes major permit approvals, process,
product yield and quality improvements,
and the signing of detailed engineering
work packages and agreements with
partners such as Caterpillar and FLSmidth.
ioneer regards the health and welfare
of its staff with the utmost importance.
The COVID-19 pandemic has been a
serious concern for the Company and its
stakeholders. ioneer staff met regularly
during the year to discuss the changing
circumstances and develop safe solutions
for its workforce.
ioneer also implemented strong health
care plans and paid time-off programs
for US based staff. ioneer believes it has
created a solid foundation for the care and
retention of staff. Additional employee
programs and policies will be developed
in FY 2022.
As Rhyolite Ridge progresses, additional
professional experiences and skills will be
required. During the course of FY 2021,
we made appointments to our Board and
Nevada-based leadership team in areas
of project execution, ESG, supply chain
management, mining operations, process
operations and financial management.
DIVERSITY
ioneer endeavours to create a diverse
work environment in which everyone
is treated fairly and with respect and
where everyone feels responsible for
the reputation and performance of
the Company. Our commitment to this
contributes to achieving our corporate
objectives and embeds the importance
and value of diversity within the culture of
the Company.
The Company recognises that workplace
diversity, including gender, age, ethnicity,
cultural background, qualifications and
experiences is a key contributor to our
business success.
In FY 2021, ioneer appointed two Board
members, and added seven colleagues
to its Reno-based Project team. Our
new colleagues have brought valued
professional skills in areas such as project
execution, ESG, finance management,
supply chain, mining operations and
process operations. Five Project team
members have assumed leadership
roles in Nevada. Two Board member
positions and five leadership roles have
been awarded to women over the last
year, increasing female representation
in ioneer’s workforce to 36%, from 26%
in FY 2020. Female representation on
the Board comprised 33% in FY 2021, a
significant improvement from 0% in FY
2020. The Company’s future is tied to
our ability to complete the permitting,
financing, construction, ramp-up, and
operations at Rhyolite Ridge. We will
expand our team significantly as we
develop the Project. The Board will seek
to increase gender diversity at senior
levels of management and across the
organisation as a whole.
ioneer Annual Report 2021
19
Our community
ioneer is committed to making a positive
impact on the global environment and
that starts with the support of the local
community. We have solicited feedback
and provided updates to the community
on a regular basis as the Project has
progressed. We also have worked closely
with regulators regarding the socio-
economic studies required for permitting
projects on land administered by the BLM.
The Rhyolite Ridge Project will have a
tremendous positive economic impact on
Esmeralda County and 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
operational jobs.
Community engagement has been a
critical component of our development
program 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 2021, we hosted two
community meetings (one virtual and
one in-person), despite the difficulties
created by COVID-19, bringing together
community members and ioneer
representatives to discuss the Project
and the opportunities that it will afford
Esmeralda County.
ioneer is equally committed to ensuring
any actions consider the principles of
environmental justice. We have initiated
an open and active dialogue with local
communities in Nevada with a specific
focus on the three tribal bands in
the region with interests in the areas
around Rhyolite Ridge. We have invited
members of the tribal bands to tour the
development site and have scheduled
meetings between the leaders of the
Duckwater Shoshone, Timbisha Shoshone,
and Yomba Shoshone tribes.
The investment by ioneer in the local
community goes beyond jobs and broader
economic impacts. We will continue to
be an active participant in the community
by supporting local causes. This includes
the annual ioneer Sustainable World
Scholarship.
In addition, total charitable investments
in the community are expected to range
between US$100,000-250,000 per year
during operations. Areas of support have
included:
• Funding for meal delivery for seniors
and shut-ins during the pandemic
• Annual donation of turkeys to Fish Lake
Valley residents for Thanksgiving
• Holiday meals and gifts for local
children in nearby communities
• Funding for Veterans Memorial Wall in
Tonopah
• Contributing to maintaining Tonopah
Historic Mining Park
• Sponsor of Fish Lake Valley’s 4th of July
Celebration and Rodeo
• Sponsor of Tonopah’s Jim Butler Days
and National Mining Championships
• Supported a local Fish Lake Valley
student to attend the National
Junior Leadership Conference in
Washington, D.C.
Clockwise from top left: Community Meeting in Fish Lake Valley, August 2021; Fish Lake Valley
Rodeo, July 2021; National Mining Championships, June 2021
Workforce Snapshot (30 June 2021)
Diversity
100%
36%
50%
33%
80%
%
s
e
e
y
o
p
m
E
l
60%
40%
20%
0%
Age
s
e
e
y
o
p
m
E
l
9
8
7
6
5
4
3
2
1
0
Tenure
64%
100%
67%
50%
Employees
Senior
Management
Executives
Board
Female Male
8
5
6
1
<30
31– 40
41– 50
51– 60
>60
s
e
e
y
o
p
m
E
l
7
6
5
4
3
2
1
0
<6 months
6 months
to 1 year
1 to 2
years
2 to 3
years
>3 years
HEALTH & SAFETY
Employee health and safety is a key
Company focus and will continue to
be of greatest importance as we move
into the construction and operations
phase of Rhyolite Ridge. ioneer’s
workplace culture is founded upon
empowerment, leadership and support,
which recognises both the Company’s
responsibility to employees and the
role employees and contractor partners
play in maintaining a safe working
environment.
A site health, safety, environmental
(HSE) and security program will be
developed for the construction phase
and transitioned to the operations
phase. The program will meet or
exceed mandatory codes, acts, and
regulatory requirements of Mine Safety
and Health Administration (MSHA)
of the US Department of Labor. The
HSE program will include safety
requirements addressing hazardous
processes, hazardous materials and
equipment, fire suppression equipment,
safe work permit requirements,
emergency procedures, safety training
requirements, incident reporting, and
medical services support.
The responsibility to report on safety
matters to ioneer’s Board rests with the
Senior VP Engineering and Operations.
The message that safety is a core value
will be communicated to all levels of the
Project’s organisation and workforce.
The HSE plan will describe the Project’s
core values and policy for complying
with all relevant HSE commitments, laws,
and regulations. Training for employees
will include a comprehensive overview of
expectations for safe execution of work
activities on the Project. This training will
include instructions on how all project
employees, contractors, and other
personnel are to perform their duties
and comply with MSHA regulations.
As a first step in our HSE journey, all
employees were required to develop a
personal HSE plan in FY 2021.
Community engagement
has been a critical
component of our
development program
and workstreams since
day one
Above: ioneer is committed to the local
community of Fish Lake Valley
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 Engineering, Science
and/or Mining. For 2021,
ioneer expanded the
application pool to include
recent Tonopah High
School graduates pursuing
post-secondary education.
We awarded renewable
scholarships to two
recipients. The scholarships
will provide financial support
to the recipients throughout
their 4-year college
education, subject to the
maintenance of a minimum
grade point average.
Matt Weaver presenting Sustainable World Scholarship to 2021 recipient, Isabel Avias
ioneer Annual Report 2021
21
Above left: Matt Weaver delivers presentation at Community
meeting in Fish Lake Valley, August 2021
Above right: Bernard Rowe and Ian Bucknell receiving an award
from AIRA for best IR by a company in the S&P / ASX Emerging
Companies Index
Below: Community gathered at recent Fish Lake Valley meeting
board of directors
JAMES D CALAWAY
BERNARD ROWE
JULIAN BABARCZY
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.
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.
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.
ALAN DAVIES
ROSE MCKINNEY-JAMES
MARGARET R WALKER
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.
Independent Non-executive Director
Juris Doctorate law, BA Liberal Arts
Former: President and CEO of
Corporation for Solar Tech & Renewable
Resources, Commissioner with the
Nevada Public Service Commission
Rose McKinney-James is an experienced
and accomplished public company
director, clean energy advocate, and small
business leader with a broad history in
public service, private sector corporate
sustainability, social impact, and non-
profit volunteerism. She also served as
Nevada’s first Director of the Department
of Business and Industry.
Independent Non-executive Director
BS Chem Engineering, NACD Fellow
Former: VP Engineering and Technology
Centers, Dow Chemical
Margaret Walker brings over 40 years’
experience and leadership in large-
scale chemical engineering, project
management and organisational
development gained through a career
as a chemical engineer with The Dow
Chemical Company (“Dow Chemical”).
She has deep experience in constructing
and successfully bringing into production
complex projects.
ioneer Annual Report 2021 23
senior executives
JAMES D CALAWAY
BERNARD ROWE
IAN BUCKNELL
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.
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.
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.
KEN COON
YOSHIO NAGAI
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.
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.
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 experience, having
worked with BHP, Rio Tinto and Newmont,
and several junior mining companies.
directors’ report
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 2021
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 ai ms to assist users to 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 2021
•
Significant progress was made on permitting the project:
o
o
o
The Project Plan of Operations was deemed complete and accepted by the United States Bureau of
Land Management marking a major milestone toward the completion of the National Environmental
Policy Act (NEPA) process.
Key air and water quality permit applications were completed and issued by the relevant State
regulatory bodies.
The Company announced the results of a 13-month University of Nevada, Reno study which greatly
advanced the knowledge of Tiehm’s buckwheat.
•
Engineering and vendor packages
o
The first vendor engineering packages were issued for bid. By financial year end approximately
US$148 million in major work packages are now under contract or advanced stages of negotiation .
Signed an MOU with Cashman Equipment for Caterpillar equipment with a value over the first five
years of operation of US$100m.
Key milestones were achieved in sales & marketing:
o
•
o
o
Binding lithium offtake agreement signed with Korea’s EcoPro Innovation Co. Ltd, the world’s second
largest NCA cathode materials manufacturer.
Battery grade lithium hydroxide successfully produced from Rhyolite Ridge Pilot Plant feedstock.
• On the corporate front:
o
Strategic partner discussions are progressing well with a short list of potential strategic funding
partners for Rhyolite Ridge.
o Completion of $80 million fully underwritten institutional placement with cornerstone investment
from BNP Paribas Energy Transition Fund.
The Board farewelled long-serving non-executive director, Pat Elliott in November 2020 and non-
executive directors John Hofmeister in May 2021. We welcomed the appointments of Rose
McKinney-James and Margaret R Walker as independent non-executive directors in February 2021.
o
Summary of performance and financial position
Year ended 30 June
Mineral Resource: Measured and Indicated
Inferred
Mineral Resource: Total (1)
Total operating cash flows
Investing cash flows
Financing cash flows - equity
Total cash used in the financial year
Net cash
Capitalised exploration
Net assets
Net loss after tax
Unit
mt
mt
mt
A$'000
A$'000
A$,000
A$'000
A$'000
A$,000
A$,000
A$,000
2021
127.0
19.5
146.5
(6,487)
(23,644)
76,378
46,247
83,078
27,805
191,055
(10,326)
2020
127.0
19.5
Change
-
-
146.5
-
(6,773)
(44,354)
38,676
(12,451)
38,268
44,362
130,046
286
20,710
37,702
58,698
44,810
(16,557)
61,008
(5,446)
(4,880)
(1) For further detail and Mineral Resources and Ore Reserves refer to Other information set out on page 85.
IONEER LTD 2021 ANNUAL REPORT 2
ioneer Annual Report 2021
Directors’ report
Business strategy
OOuurr PPuurrppoossee - we exist to enable a sustainable world for all.
OOuurr MMiissssiioonn - we responsibly and profitably provide the materials necessary for realising a sustainable planet.
OOuurr VViissiioonn - we see a world in which our global population, our environment and all future generations are thriving.
OOuurr VVaalluueess - 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 jurisdi ctions 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 continues to impact the Company. 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. Project timelines have experienced some delay as permitting agencies, potential strategic partners, offtake
parties and debt financiers, have each had to respond to the impact of COVID-19 on their own businesses.
IONEER LTD 2021 ANNUAL REPORT 3
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Directors’ report
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:
JJaa mmeess DD CCaallaawwaayy
EE xxeeccuuttiivvee CChhaaiirrmmaann
BA (Econ), MA (PP&E)
Member of the ESG
Committee
James was appointed a director in April 2017 and has served as Chairman since
June 2017. He was appointed executive-chairman in July 2020.
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 of Distributed Power Partners Inc (appointed 2014), a
US international distributed power development company which is a leader of
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.
BBeerr nnaarrdd RRoowwee
MM aa nnaaggiinngg DDiirreeccttoorr
BAppSc (Geology) (Hons)
Member of the Project
Execution Committee
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.
JJuull iiaann BBaabbaarrcczzyy
DDii rr eeccttoorr
B.Bus (Marketing)
Grad Dip. (Mineral
Exploration Geosciences),
CFA
Chair of the Audit & Risk
Committee
Member of the Nomination
and Remuneration
Committee
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
hedge funds. Julian has broad investment experience across a range of sectors,
with a notable speciality in natural resources.
He is currently the chief investment officer at a private investment company, Jigsaw
Investments, non-executive chairman of database collaboration technology
company IXUP Limited (appointed November 2020), executive chairman of silica
sand project developer Perpetual Resources Limited (appointed June 2018), and a
non-executive director of privately held video media technology company Oovvuu
Pty Ltd (appointed June 2020).
Julian is a graduate of the CFA Institute.
AA ll aann DDaavviieess
DDii rr eeccttoorr
B.Bus (Accounting), LLB,
LLM
Chair of the Nomination and
Remuneration Committee
Member of the Audit & Risk
Committee
Member of the Project
Execution 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 Aust ralia.
IONEER LTD 2021 ANNUAL REPORT 4
directors’ reportcontinuedioneer Annual Report 2021
Directors’ report
The following persons were appointed directors of ioneer Ltd during the financial year. Their qualifications and experience
are:
RR oo ssee MMccKKiinnnneeyy--JJaammeess
DDii rr eeccttoorr
Juris Doctorate (Antioch
School of Law)
BA (Olivet College)
Chair of the ESG Committee
Member of the Nomination
and Remuneration
Committee
Rose joined the board as a non-executive director in February 2021.
Rose is a Nevada-based expert in environmental business and technology policy,
renewable and clean energy advocacy, and sustainable development.
She directed the Department of Business and Industry, Nevada’s largest state agency
and was recognised for her innovation providing efficient and advanced services to
the Nevada business community. As the former CEO of CSTRR, a solar a nd
renewable energy company, she is credited with authoring the strategy to fast track
the integration of renewable resource into utility energy portfolios. Rose also is the
former Commissioner, Nevada Public Service Commission.
Rose currently serves as a non-executive director of MGM Resorts International
(appointed 2005), Toyota Financial Savings Bank (appointed 2006), ClearResult
(appointed November 2020) and is the Chair of the Energy Foundation.
MM aa rr ggaarreett WWaallkkeerr
DDii rr eeccttoorr
B. Chemical Engineering
(Texas Tech University)
Fellow NACD
Chair of the Project
Execution Committee
Member of the Audit & Risk
Committee
Margaret joined the board as a non-executive director in February 2021.
Margaret is a chemical engineer with significant experience working across the
chemical, engineering and construction sectors. She spent 36 years at NYSE-listed
Dow Chemical Co, including six years (2004-2010) as Vice President Engineering and
Technology Centers. Her experience spans operations, engineering, supply chain
and business leadership.
Margaret currently serves as a non-executive director of Methanex Corporation
(appointed April 2015), and the board of Independent Project Analysis, Inc, a
privately held firm that drives improvement in capital performance (appointed
January 2011).
Margaret holds a Bachelor of Science in Chemical Engineering from Texas Tech
University, and in 2018 became a National Association of Corporate Directors Board
Leadership Fellow
The following persons ceased being directors of ioneer Ltd during the financial year. Their qualifications and experience
are:
PPaa tt rriicckk EElllliiootttt
DDii rr eeccttoorr
B.Comm, UNSW
MBA Mineral Economics
Pat joined the board as a non-executive director in 2003 and resigned from the role
in November 2020. He was the Chairman of the Audit & Risk Committee and
member of the Nomination & Remuneration Committee before his resignation.
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 was chairman of Argonaut Resources NL, Cap-XX Limited, and executive
chairman of Variscan Mines Limited until his retirement in September 2018.
JJoo hhnn HHooffmmeeiisstteerr
DDii rr eeccttoorr
BA (Political Science),
MA (Political Science), PhD
(Houston),
D.Lit (Kansas State)
John joined the board as a non-executive director in May 2017, deceased May 2021.
He was the Chairman of the Nomination and Remuneration Committee and member
of the Audit & Risk Committee before his passing.
John was the president of Shell Oil Company (U.S.A.) from 2005 to 2008 and
director of human resources. He also has held executive leadership positions in
General Electric Company, Nortel Network Corporation and AlliedSignal (now
Honeywell International Inc.).
He founded Citizens for Affordable Energy and was a key member of the United
States Energy Security Council.
Company secretary
MM rr II aann BBuucckknneellll
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.
IONEER LTD 2021 ANNUAL REPORT 5
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Directors’ report
Directors’ interests in shares and options
Directors’ interests in shares and options as at 30 June 2021 and at the date of this report are set out in the table below:
Shares held
As at 30
June 2021
31,600,000
61,341,690
13,600,000
2,750,152
-
-
Options
held
As at 30
June 2021
41,010,830
-
326,323
1,510,830
-
-
Performance
Rights held
As at 30
June 2021
Shares
held
At report
date
-
31,600,000
8,893,834 64,107,962
13,600,000
-
2,750,152
-
-
300,000
-
300,000
Options
held
At report
date
41,010,830
-
326,323
1,510,830
-
-
Performance
Rights held
At report
date
-
6,127,562
-
-
300,000
300,000
Director
JD Calaway
B Rowe
J Babarczy
A Davies
R McKinney-James
Margaret Walker
Directors’ meetings
Director’s attendance at Directors’ meetings are shown in the following table:
Board
Audit & Risk
committee
Remuneration
committee
Project Execution
Directors
JD Calaway
B Rowe
J Babarczy
A Davies
P Elliott
J Hofmeister
R McKinney-
James
M Walker
Meetings
eligible
to attend
10
10
10
10
3
8
Meetings
attended
10
10
10
10
3
8
Meetings
eligible
to attend
-
-
2
4
2
4
Meetings
attended
-
-
2
3
2
4
Meetings
eligible
to attend
-
-
4
4
1
4
Meetings
attended
-
-
4
4
1
3
Meetings
eligible
to attend
-
3
-
3
-
-
Meetings
attended
-
3
-
2
-
-
6
6
6
6
-
1
-
1
1
-
1
-
-
3
-
3
Note: Whilst the ESG Committee was formed in FY21, it did not hold its first meeting until FY22.
Committee Membership
As at the date of this report, the Company had an audit and risk committee, a remuneration committee, a project
execution committee, and an ESG committee.
Members acting on the committees of the board at the end of the financial year are:
Director
JD Calaway
B Rowe
J Babarczy
A Davies
R McKinney-James
M Walker
Committee
Audit &
Risk
Nom &
Rem
Project
Execution
*
1
1
1
1
1
1
*
1
1
1
*
ESG
1
1
*
(1) Chairs of each Committee are denoted by an asterisk. They are all independent non-executive directors.
(2) Whilst the ESG committee was established in FY21, it did not hold its first meeting until FY22.
(3) The composition of the committees changed during the year with the resignation of Pat Elliott and the passing of John Hofmeister.
Pat Elliott was chair of the audit and risk Committee until his resignation, and John Hofmeister chaired the nominations and
Remuneration Committee until his passing.
IONEER LTD 2021 ANNUAL REPORT 6
directors’ reportcontinuedioneer Annual Report 2021
Directors’ report
Indemnification and insurance of directors and officers
II nndd eemmnniiffiiccaattiioonn
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.
II nnss uurraannccee pprreemmiiuummss
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.
Remuneration report
The remuneration report set on pages 32 to 50 forms part of the Directors report for the year ended 30 June 20 21.
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
30 June 2021
Number
30 June 2020
Number
1,896,676,204
1,680,202,466
45,369,643
30,801,865
43,738,028
9,586,056
Since the end of the financial year the following additional shares, options or performance rights have been granted:
•
•
7,520,697 Performance rights have vested, and new shares issued.
6,213,562 Performance rights have been granted (including deferred 2021 STI 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 t he
areas of exploration in accordance with regulatory guidelines and s tandards. There have been no known breaches of the
licence conditions.
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 31.
IONEER LTD 2021 ANNUAL REPORT 7
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Matters subsequent to the end of the financial period
Other than where stated at Note 9.4 to the Financial Statements, there were at the date of this report no matters or
circumstances which have arisen since 30 June 2021 that have significantly affected or may significantly affect:
Directors’ report
•
•
•
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 (round ing 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 15th day of September 2021 in accordance with a resolution of the Directors.
JJaa mmeess DD CCaallaawwaayy
Executive Chairman
BBeerr nnaarrdd RRoowwee
Managing Director
IONEER LTD 2021 ANNUAL REPORT 8
directors’ reportcontinuedioneer Annual Report 2021
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 Limited
As lead auditor for the audit of the financial report of ioneer Limited for the financial year ended 30
June 2021, 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 Limited and the entities it controlled during the financial year.
Ernst & Young
Scott Nichols
Partner
Sydney
15 September 2021
A member firm of Ernst & Young Global Limited
Liability limited by a scheme approved under Professional Standards Legislation
31
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remuneration report – audited
Remuneration report
Remuneration report – audited
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.
Performance
Financial year 2021 was challenging as the world adjusted to living with COVID-19. Markets paused as they assessed the
financial impact of the pandemic and contemplated early steps toward recovery. Our Project was not immune from this,
most notably with delays experienced on the permitting front. Having said this, our small, dedicated team continued to
deliver results. On permitting, the plan of operations for the project was accepted as being complete by the Bureau of Land
Management (BLM) in August 2020, the state air quality permit was issued in June 2021, followed by the water permit in July
2021. In engineering, work was completed to optimise our recoveries, improve our product quality, reduce lime and soda
ash consumption, advance detailed engineering and in issuing key equipment packages for vendor engineering. Our team’s
human resources capabilities and diversity were substantially enhanced with the addition of senior leaders in process,
mining, supply chain and finance most of whom have substantial experience in Nevada. Our sales and marketing team
delivered the first lithium offtake agreement of the Project, the culmination of over two years work. Our finance team raised
$80m in equity, advanced discussions with strategic partners and debt financiers and implemented a new ERP system.
Changes to the Board and executive
During the year, several changes were made to the board. After 17 years of service, Pat Elliott retired as a non-executive
director of the board, effective 30 November 2020. In February 2021, Rose McKinney-James and Margaret Walker were
appointed to the board as non-executive directors. John Hofmeister served as a non-executive director through to 31 May
2021 when Mr. Hofmeister passed away unexpectedly. There were no other changes to KMP in the period.
Remuneration outcomes for executives
Our remuneration strategy is to target Key Management Personnel (KMP) compensation at approximately median levels
when expected objectives are achieved when compared to similar development or early production mining companies that
are considered to juniors in the mining industry.
In 2019 and 2020, remuneration consultants, Willis Towers Watson (WTW), aided by Glenn Gilchrist, an experienced HR
professional, assisted the Committee to implement and regularize executive compensation structures and processe s.
Based on their review, the following outcomes were agreed:
•
•
•
FFii xxeedd rreemmuunneerraattiioonn – The following increases to fixed remuneration were paid to executives effective 1 July 2020,
as a result of the implementation of benchmarking analysis and a review of executive performance: 30% to the
chief executive officer, 14% to the senior vice president engineering & operations, and 14% to the chief financial
officer. The vice president human resources and vice president commercial sales & marketing each received a 4%
cost of living adjustment. In financial year 2022, all executives will receive a 3% cost of living adjustment to base
salary.
SShhoo rrtt tteerrmm iinncceennttiivvee ((SSTTII)) aannnnuuaall bboonnuuss ppaayymmeennttss – The Board awarded bonuses below target based on an
assessment of project deliverables (see comments on performance above). Consequently, t he CEO received an
award at 70% of target while the other four executives received bonuses at 80% of target.
LL oo nngg tteerrmm iinncceennttiivvee ((LLTTII)) aannnnuuaall eeqquuiittyy ggrraanntt aawwaarrddss - The KMP were awarded LTI grants at target with
performance hurdles to be assessed at vesting. The LTI at risk award of remuneration for the senior vice president
engineering and operations was increased from 60% of base salary to 70% of base salary base d upon a
competitive peer group review.
We believe that these outcomes align our executive remuneration with competitive benchmarks and support our growth as
a company. Our remuneration policy includes annual performance criteria and standard review cycl es.
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, James Calaway was appointed an executive of the Company for a 12 -month period, effective 1 July 2020. The impact
of COVID-19, travel restrictions on Australian based staff and an extended project schedule, made it apparent that James
Calaway’s continued efforts would be required through financial year 2021. With these same conditions persisting, James
executive employment contract was renewed for a further 12-month period effective 1 July 2021.
Our goal is to keep shareholders informed of KMP and non-executive director remuneration policies and payments in as
simple, clear and transparent manner as possible, recognising the impor tance 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.
IONEER LTD 2021 ANNUAL REPORT 10
ioneer Annual Report 2021
In closing, I’d like to recognise the work of John Hofmeister who chaired the Nomination and Remuneration Committee,
until his passing in May 2021.
Remuneration report
AAllaann DDaavviieess
Chairman, Nomination & Remuneration Committee
Key terms used in this report
AA cctt
AA GG MM
AA SSXX
FFII DD
II NN RR
KK MM PP
LL TTII
Corporations Act 2001 (Cth)
Annual General Meeting
Australian Securities Exchange
Final Investment Decision
Ioneer
Key management personnel
Long-term incentive
Managing director
Non-executive director
MM DD
NN EE DD
OOpp tt iioonn PPllaann Share Option Plan
RR ii gghhttss
RR ii gghhttss PPllaann
SSTTII
Share rights
Performance Rights Plan
Short-term incentive
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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 20 21.
This Remuneration Report which forms part of the Directors Report out lines 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:
Executive chairman and non-executive directors
JJ aammeess DD CCaallaawwaayy ((11))
Executive chairman
JJ uu lliiaann BBaabbaarrcczzyy
AA llaann DDaavviieess
PP aattrriicckk EElllliiootttt
JJ oo hhnn HHooffmmeeiisstteerr
RR oo ssee MMccKKiinnnneeyy--JJaammeess
MM aarrggaarreett RR WWaallkkeerr
Non-executive director
Non-executive director
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, resigned 30 November 2020
Appointed 23 May 2017, deceased 31 May 2021
Appointed 1 February 2021
Appointed 1 February 2021
Managing director and executives
BBee rrnnaarrdd RRoowwee
Managing Director
Appointed 23 August 2007
II aann BBuucckknneellll ((22))
KKee nn CCoooonn
YY oo sshhiioo NNaaggaaii
MM aatttt WWeeaavveerr
Chief financial officer and company secretary
Vice president human resources
Vice president commercial sales and marketing
Appointed 14 November 2018
Appointed 1 July 2019
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.
(2) Mr Bucknell was appointed company secretary on 1 April 2019.
IONEER LTD 2021 ANNUAL REPORT 12
remuneration report – audited continuedioneer Annual Report 2021
Remuneration report
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 it s
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:
•
•
•
Alan Davies (Chairman);
Julian Babarczy; and,
Rose McKinney-James.
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:
•
BBoo aa rrdd ssiizzee:: 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;
• DDii rr eeccttoorr ccoommppeetteenncciieess:: making recommendations regarding the necessary and desirable competencies of
•
directors;
SSkkii llllss mmaattrriixx: 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;
• DDii rr eeccttoorr rreeccoommmmeennddaattiioonnss:: developing and reviewing the process for the selection, appointment and re-election
of directors, and making recommendations to the Board by:
IONEER LTD 2021 ANNUAL REPORT 13
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o
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evaluating the balance of skills, experience, independence, knowledg e 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 wit h 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 quali ties 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 referen ces and
putting forward the candidate for appointment and election as a director to the Chairman, Managing
Director, and full Board;
•
•
•
•
•
PPrr oo vviiddiinngg iinnffoorrmmaattiioonn:: 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;
AA ss sseessssiinngg ppeerrffoorrmmaannccee:: 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;
AA ss sseessssiinngg ttiimmee ccoommmmiittmmeenntt:: 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;
AA ss sseessssiinngg iinnddeeppeennddeennccee:: assisting the Board in assessing the independence of each non-executive director;
SSuucccceessssiioonn ppllaannss:: 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;
• GG oo vveerrnnaannccee mmaatttteerrss: 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:
• DDii rr eeccttoorrss’’ ffeeeess: the Company’s remuneration framework for directors, including, the process by which any pool of
•
•
•
•
•
•
directors’ fees approved by shareholders is allocated to directors;
SSeenniioorr eexxeeccuuttiivveess:: the remuneration packages to be awarded to senior executives;
BBii aa ss:: reviewing whether there are any gender or other inappropriat e bias in remuneration for directors, senior
executives or other employees;
PPoo ll iicciieess:: the Company’s recruitment, retention and termination policies for the Managing Director and senior
executives and any changes to those policies;
II nncceennttiivvee sscchheemmeess:: incentive schemes, if appropriate, for the Managing Director and senior executives;
EE qq uuiittyy--bbaasseedd pprrooggrraammss:: equity-based remuneration plans, if appropriate, for senior executives and other
employees;
SSuupp eerraannnnuuaattiioonn aanndd rreettiirreemmeenntt bbeenneeffiittss:: superannuation and retirement benefit arrangements for directors, senior
executives and other employees; and
• OOtt hheerr ppeerrqquuiissiitteess:: 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:
•
•
•
•
RR eevviieewwiinngg:: reviewing their terms (including any eligibility criteria and performance hurdles);
AA dd mmiinniissttrraattiioonn:: 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;
SShhaa rreehhoollddeerr aapppprroovvaall:: considering whether shareholder approval is required or desirable for the schemes or plans
and for any changes to them; and
PPaa yymmeennttss aanndd aawwaarrddss:: ensuring that payments and awards of equity are made in accordance with their terms and
any shareholder approval.
IONEER LTD 2021 ANNUAL REPORT 14
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Remuneration report
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, Ashurst and Glenn Gilchrist, were engaged to provide advice on 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 Watson Towers
Gilchrist Consulting
Mullin Hoard & Brown LLP
Ashurst
Watson Mangioni
Total
Year ended
Year ended
30 June 2021
30 June 2020
$
76,047
19,621
-
2,588
$
51,013
41,327
12,362
-
-
19,185
98,256
123,887
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IONEER LTD 2021 ANNUAL REPORT 15
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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:
•
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FFii xxeedd:: Annual base salary.
VV aa rriiaabbllee sshhoorrtt--tteerrmm iinncceennttiivvee:: annual cash bonus.
VV aa rriiaabbllee eeqquuiittyy:: options and performance rights granted under shareholder approved equity incentive plans (refer
3.2, Equity Incentive Plans in this Remuneration Report).
PPoo ss tt--eemmppllooyymmeenntt bbeenneeffiittss:: 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. As a Company with a single, pre-development project,
and the majority of our people in the US where we compete to attract the best available human resources, our
compensation strategy must bridge both Australian and US remuneration practices. This bridging means that our
remuneration practices do not always follow Australian best practice. A good example of this is the use of time -based
vesting of performance rights, which is a common practice in the US.
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. All KMP had the option to take the 2021 bonus as cash or as a 12 -month
performance right with a 20% premium provided for equity. Where a KMP has elected to take the cash bonus as a
12 month performance right, the 20% premium for equity will b e expensed in FY2022.
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. A key risk to ioneer is attracting and retaining talent to
our Project. This practice helps to provide some stability to the equity grants and to incentivise retention. It is a
competitive practice, commonly employed in North America where we operate. 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 two share schemes in operation:
•
•
•
The Equity Incentive Plan (current);
The Share Option Plan (historic); and
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 on issue under the terms and conditions of the Share Option Plan, all financial year 2019 to
2021 grants and issues of options or rights have been made under the Equity Incentive Plan. At 30 June 2021 all
performance rights had vested under the Performance Rights 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 i n 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.
IONEER LTD 2021 ANNUAL REPORT 16
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•
•
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 allocate shares.
•
At any time during the exercise period a participant may exercise any or all of their vested options by paying the
exercise price.
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 2021:
Performance Rights – Time-based
Year of Grant
Financial year 2021
Participants
Purpose
All executives
Time based PRs were issued for a variety of purposes including:
STI bonus payments voluntarily converted to PRs and deferred for 1 year.
•
• One-off make up LTI equity grants for 2018 not granted, issued to the MD and Sr. VP
Engineering and Operations in FY 2021, as part of implementing regular executive
compensation processes to competitively align compensation.
LTI equity grant – 2020 (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 202 0 but not granted until after the financial year due
to ongoing work by the Nomination and Remuneration Committee to finalise the performance conditions. 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 2021:
Year of Grant
Financial year 2021
Participants
Purpose
Instruments issued
All executive KMP as at 30 June 2020 (2021 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:
HHSS EE:: Top quartile HSE & Community performance (North American Mining Projects)
PP rroo dduuccttiioonn:: Major USA lithium producer to market, start-up achieved as stated at FID
SS ttaarrtt--uupp pprroodduuccttiioonn lleevveellss:: in line with those established as part of FID
CCoo sstt ccoonnttrrooll:: Final Project construction spend within margin established at FID
•
•
•
•
• OOff ff ttaakkee:: 80% products sold for first 3 years
•
SS hh aarree pprriiccee:: INR share price compared to comparators group
Unlike producing organizations with established operations that typically aim to deliver
performance conditions tied to anticipated revenues, production levels and growth objectives,
ioneer has a single pre-production project with less certainty or control over key deliverables.
Providing the Board with the discretion to assess the extent of delivery, the importance/value of the
various targets delivered (or not) allows the ability to balance shareholder expectations and KMP
reward, motivation and retention.
Options
No options were issued to the Managing Director or executive during the financial year ended 2021 (2020: nil) under the
equity incentive plan. Options were approved by shareholders and issued to non-executive directors and the executive
chairman under the plan, however. The practice of issuing options to non-executive directors was reviewed during the
IONEER LTD 2021 ANNUAL REPORT 17
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financial year by the Nomination and Remuneration Committee and the Committee decided to discontinue the use of
options and move to granting restricted shares. 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 2021 (2020: 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 are time based and there are no performance conditions.
• Options cannot be transferred and are not quoted on the ASX.
• 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 2021 (2020: 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.
3.3. Service agreements
Managing director
Term
Effective Date
Remuneration
Termination
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
IONEER LTD 2021 ANNUAL REPORT 18
remuneration report – audited continuedioneer Annual Report 2021
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
Remuneration report
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
o
70% of base salary - senior vice president engineering & operations
60% of base salary - chief financial officer
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. Performanc e 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)
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)
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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 (1)
Cash
Bonus (2)
Non-
monetary
benefits
Superannuation
and employee
benefits (4)
Performance
rights
Total
$
$
545,495
382,340
208,389
332,535
379,090
273,525
148,800
66,684
106,411
151,636
(3)
$
-
8,112
51,109
-
-
$
$
$
25,000
25,000
-
28,997
32,389
1,261,756
2,105,776
254,385
118,930
112,219
411,868
818,637
445,112
580,163
974,983
1,847,849
747,056
59,221
111,386
2,159,159
4,924,671
428,179
350,000
300,717
320,559
373,972
494,619
175,000
120,798
128,224
218,408
--
9,770
15,686
--
-
25,000
38,022
--
29,724
84,858
--
355,804
43,090
42,165
365,272
947,798
928,596
480,291
520,673
1,042,510
22 00 2211
Bernard Rowe
Ian Bucknell
Ken Coon (4)(5)
Yoshio Nagai
Matt Weaver
Total
2020 (Restated) (7)
Bernard Rowe (6)
Ian Bucknell
Ken Coon
Yoshio Nagai
Matt Weaver
Total
1,773,427
1,137,048
25,456
177,604
806,331
3,919,867
Proportion of
Remuneration
that is
performance
based
% of
remuneration
that consists
of
options/rights
%
73%
49%
42%
38%
58%
59%
52%
57%
34%
33%
56%
50%
%
60%
31%
27%
19%
42%
44%
0%
38%
9%
8%
35%
21%
Salary includes annual leave entitlements.
(1)
(2) All KMP had the option to take the 2021 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 still included in the cash bonus above. However, the 20% premium will be expensed in
FY2022.
Ian Bucknell receives a non-monetary benefit in the form of car parking at the company premises. Ken Coon receives accommodation
and travel expenses to the company offices in Reno, Nevada. He does not receive any employee benefits in the form of health
insurance or superannuation.
Superannuation and employee benefits includes superannuation for all KMP (except Ken Coon per note 2 above) and health insura nces
for Matt Weaver and Yoshio Nagai.
(4)
(3)
(5) During the financial year, in response to Covid-19, Ken Coon was reduced to a 50% part-time capacity for a period of 8 months, in
(6)
support of reducing costs.
Includes Equity grants announced in the 2019 financial report, approved by shareholders at the 2020 Annual General Meeting and
included as remuneration in financial year 2020. Bernard Rowe’s cash bonus includes $300,000 in relation to the 2020 STI award plus an
additional amount of $194,619 representing a deferred 2019 STI amount that was paid in cash rather than awarded as equity.
(7) The 2020 table has been restated for the portion of the 2020 cash bonus that was taken as a 12 month performance right with 2 0%
premium provided for equity.
4.2.
Fixed remuneration
As part of the remuneration work undertaken during the financial year, adjustments to base salary were agreed for all KMP
to standardise their base salaries to benchmarked comparatives.
The Nomination & Remuneration Committee approved increases to fixed remuneration for financial year 202 1, as shown
below.
Base salary (1)
% Increase
30-Jun-21
30-Jun-20
Bernard Rowe
Ian Bucknell
Ken Coon
Yoshio Nagai
Matt Weaver
30%
6%
4%
4%
14%
A$
521,000
372,000
-
-
-
US$
-
-
235,000
250,000
285,000
A$
401,000
350,000
-
-
-
US$
-
-
225,000
240,000
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.
IONEER LTD 2021 ANNUAL REPORT 20
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Remuneration 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.
Financial Year 2021
For the 30 June 2021 financial year, the corporate performance targets included progress agai nst:
•
•
•
•
•
•
Engineering and construction readiness
Environmental permitting
Spending in line with Board expectations
Strategic partnering process
Project financing
Final Investment decision
On an assessment of actual performance for the financial year, the board weighed up the clear progress of the engineering
workstream towards construction readiness, the award of two of the three key environmental permits, spending in -line with
budgets, strong progress on the partnering and financing front offset by overall delay in Project delivery and more
specifically the publishing of the Notice of Intent. All of which took place within the context of a global pandemic, and a
transition of US government administration.
With the above in mind, the board determined to pay incentive bonuses below target. The chief executive officer received
an STI award at [50%] of target, being [38%] of base salary. The chief financial officer, vice president human resources, vice
president commercial sales and marketing and senior vice president engineering and operations received awards at [70%]
of target being [35%, 19%, 28% and 35%] of base salary respectively.
Cash bonuses of $753,070 were accrued for KMP for the year ended 30 June 2021 and were paid after balance date (2020:
$998,921). Several KMP elected to receive performance rights (with a vesting period of 1 year) in lieu of cash.
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 senior vice president engineering and operations LTI award w as increased
from 60% of base salary to 70% 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.
43
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Performance rights
The number and value of rights granted during the current and previous financial year to KMP is detailed below:
Remuneration report
Purpose
Vesting
period
(months)
Grant date
Vesting
Date
Number
Award
Value (3)
Year ended
30 June
2021
Ian Bucknell
Sub total
Ken Coon
Sub total
Yoshio Nagai
Sub total
Bernard
Rowe
Sub total
Matt Weaver
Sub total
Total
Year ended
30 June
2020
Ian Bucknell
Retention on employment (1)
Retention on employment (1)
Retention on employment (1)
2019 LTI Grant - performance based
(2)
2020 LTI Grant - time based
2020 LTI Grant - performance based
Bonus 2020 conversion
2020 LTI Grant - time based
2020 LTI Grant - performance based
2020 LTI Grant - time based
2020 LTI Grant - performance based
2018 Make-up LTI Grant
2019 LTI Grant - time based
2019 LTI Grant - performance based
(2)
2020 LTI Grant - time based
2020 LTI Grant - performance based
2019 LTI Grant - performance based
(2)
Bonus 2020 conversion
2020 LTI Grant - time based
2020 LTI Grant - performance based
Retention on employment (1)
Retention on employment (1)
Retention on employment (1)
2019 LTI Grant - time based (2)
Deferred STI 2019
Retention on employment
Sub total
Ken Coon
Sub total
Yoshio Nagai Retention on employment
Sub total
Matt Weaver Make-up LTI grant 2018
2019 LTI Grant - time based (2)
Deferred STI 2019
Sub total
Total
12
24
36
24
36
36
12
36
36
36
36
8
20
20
32
32
24
12
36
36
12
24
36
36
12
36
36
24
36
12
Market
value
per
right $
0.1750
0.1750
0.1750
$
42,767
42,766
42,766
8/08/2019
8/08/2019
8/08/2019
14/11/2019
14/11/2020
14/11/2021
244,382
244,378
244,378
1/07/2020
1/07/2022
776,627
157,267
0.2025
1/07/2020
1/07/2020
1/07/2023
1/07/2023
1/07/2020
1/07/2020
1/07/2020
1/07/2021
1/07/2023
1/07/2023
1/07/2020
1/07/2020
1/07/2023
1/07/2023
718,841
1,078,261
3,306,867
632,161
440,171
660,257
1,732,589
468,267
702,401
1,170,668
89,855
215,113
590,534
79,020
55,021
131,721
265,762
58,533
140,129
198,662
0.1250
0.1995
0.1250
0.1250
0.1995
0.1250
0.1995
6/11/2020
1/07/2021
2,766,272
539,423
0.1950
6/11/2020
1/07/2022
1,106,509
215,769
0.1950
6/11/2020
1/07/2022
1,659,763
281,330
0.1695
6/11/2020
6/11/2020
1/07/2023
1/07/2023
1,344,516
2,016,774
8,893,834
262,181
335,793
1,634,496
0.1950
0.1665
1/07/2020
1/07/2022
899,736
182,196
0.2025
1/07/2020
1/07/2020
1/07/2020
1/07/2021
1/07/2023
1/07/2023
702,401
800,737
1,201,106
3,603,980
18,707,938
87,800
100,092
239,621
609,709
3,299,164
0.1250
0.1250
0.1995
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
0.2387
0.2387
0.2387
0.1352
0.1352
0.1352
0.1862
0.1352
0.1352
0.1352
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
395,282
973,549
(1) Whilst the vesting period commences 14 November 2018, the grant date is 8 August 2019, being the date terms were finalised.
(2) The 2019 LTI performance rights to KMPs were 40% time based and 60% performance-based awards. The performance-based awards
were granted 1 July 2020 and 6 November 2020.
(3) The fair value of performance rights is determined at the time of grant per AASB 2. Re fer note 7.3.
IONEER LTD 2021 ANNUAL REPORT 22
remuneration report – audited continuedioneer Annual Report 2021
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
Balance at the start
of the year
Acquired
Disposed
Other
2021
Bernard Rowe
Ian Bucknell
Ken Coon
Yoshio Nagai
Matt Weaver
Total
2020
Bernard Rowe
Ian Bucknell
Matt Weaver (1)
Total
61,475,918
663,318
-
-
813,631
62,952,867
61,475,918
-
673,526
62,149,444
2,766,272
1,221,304
(2,900,500)
-
1,283,212
5,270,788
(307,522)
(3,208,022)
-
663,318
140,105
803,423
-
-
-
-
-
-
-
-
-
-
-
-
Balance at the
end of the
year
61,341,690
1,884,622
-
-
1,789,321
65,015,633
61,475,918
663,318
813,631
62,952,867
(1) Acquired shares are shown net of US taxes remitted on behalf of the employee at date of vesting.
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Remuneration report
Movement in performance rights
Year ended 30 June
22002211
Ian Bucknell - retention on employment (correction to
100%)
Ian Bucknell - retention on employment
Ian Bucknell - retention on employment
Ian Bucknell - retention on employment (correction to
100%)
Ian Bucknell - retention on employment (correction to
100%)
Ian Bucknell - 2019 STI
Ian Bucknell - 2019 LTI (2)
Ian Bucknell - 2020 LTI
Ken Coon - 2020 cash bonus conversion
Ken Coon - retention on employment
Ken Coon - 2020 LTI
Yoshio Nagai - retention on employment
Yoshio Nagai - 2020 LTI
Bernard Rowe - 2018 make up LTI grant
Bernard Rowe - 2019 LTI
Bernard Rowe - 2020 LTI
Matt Weaver - retention on employment (1)
Matt Weaver - 2019 STI
Matt Weaver - catch up LTIs
Matt Weaver - 2019 LTI (2)
Matt Weaver - 2020 cash bonus conversion
Matt Weaver - 2020 LTI
Total
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 - retention on employment (1)
Matt Weaver - retention on employment (1)
Matt Weaver - 2019 STI
Matt Weaver - catch up LTIs
Matt Weaver - 2019 LTI (2)
Total
Vesting
Date
Balance at
the start of
the year
Number
rights
granted
Vested
Balance at
the end of
the year
14/11/2019
14/11/2020
14/11/2021
14/11/2020
14/11/2021
1/07/2020
1/07/2022
1/07/2023
1/07/2021
1/07/2022
1/07/2023
1/08/2022
1/07/2023
1/07/2021
1/07/2022
1/07/2023
27/11/2020
1/07/2020
1/07/2021
1/07/2022
1/07/2021
1/07/2023
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
244,378
244,378
488,166
517,751
956,145
741,120
486,425
796,787
1,519,208
607,683
244,382
(244,382)
(244,378)
-
244,378
(244,378)
244,378
776,627
1,797,102
632,161
1,100,428
1,170,668
2,766,272
2,766,272
3,361,290
899,736
702,401
2,001,843
(488,166)
-
-
-
-
-
(486,425)
(796,787)
-
-
-
-
-
-
244,378
-
244,378
-
1,294,378
1,797,102
632,161
956,145
1,100,428
741,120
1,170,668
-
2,766,272
2,766,272
3,361,290
-
-
1,519,208
1,507,419
702,401
2,001,843
6,602,041
18,707,938
(2,504,516)
22,805,463
418,936
-
-
-
-
-
-
-
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
(418,936)
(244,382)
-
-
-
-
-
-
(486,425)
-
-
-
-
1,391,786
6,359,998
(1,149,743)
-
-
244,378
244,378
488,166
517,751
956,145
741,120
0
486,425
796,787
1,519,208
607,683
6,602,041
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 40% time based and 60% performance-based awards. The performance-based awards were not
granted until FY2020 once performance hurdles had been set.
(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 2021 ANNUAL REPORT 24
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Remuneration report
6. Remuneration outcomes of executive chairman and 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 executive-chairman 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 the executive chairman for board duties and the non-executive directors in the financial year was
$726,737 (2020: $651,562) in addition $401,973 was paid in executive remuneration to James Calaway. The non-executive
director fees included $27,500 paid in the form of performance rights, and $210,000 paid in the form of options.
During the financial year, the Nomination and Remuneration Committee undertook a review of non-executive directors’
remuneration. The overall outcome concluded that non-executive directors’ remuneration is competitively positioned and
as a result current overall non-executive director remuneration value remains unchanged. One specific remuneration
element the Committee looked at included granting options to non-executive directors. Further to the review, the
Committee decided to move away from options and instead recommend awar ding restricted performance rights to non-
executive directors on a salary sacrifice basis. The Committee believes a portion of their fees should be received in equity
to align with the interest of shareholders.
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 Chairs of the Audit &
Risk Committee, Nomination & Remuneration Committee, Project Execution Committee and Environment, Sustainability
and Governance Committee receive an additional $6,650 (US$5,000) 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 2022. From FY2022 total non-executive directors’ fees will be expressed fully in US dollars. Non-executive
directors will receive a total of US$85,000 per annum for their non-executive director role plus Committee chair fees of
US$5,000 per annum. A portion of their non-executive fees each year will be paid in performance rights.
The board will put to shareholders at the 2021 Annual General Meeting, that non-executive directors receive US$25,000 in
performance rights of the Company in lieu of receipt of directors’ fees in cash.
Executive-chairman remuneration
Mr Calaway was appointed executive-chairman in July 2020 in recognition of his increased workload, focused on the sales and
marketing efforts, strategic partner discussions and funding considerations for the Company’s wholly owned Rhyolite Ridge
Lithium-Boron Project in Nevada. With the impact of COVID-19, travel restrictions on Australian based staff and an extended
Project schedule, Mr Calaway’s executive contract has been renewed for a 12-month period, effective 1 July 2021. He receives
US$25,000 per month for this executive work in addition to his usual chairman fees.
The Board has determined that there will be no increase in fees payable to the executive chairman for the financial year
ending 30 June 2022. The executive chairman’s remuneration in FY 2021 totalled approximately US$185,00 0, with circa
US$35,000 being awarded as options on a sacrifice basis. From FY2022 total executive chairman fees will be expressed fully
in US dollars. For non-executive duties the chairman receives US$150,000 cash plus performance rights valued at US$35, 000.
The board will put to shareholders at the 2021 Annual General Meeting, that the executive chairman receives US$35,000 in
performance rights of the Company in lieu of receipt of his chairman fees in cash.
IONEER LTD 2021 ANNUAL REPORT 25
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Remuneration report
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 2021 are set out in the following table.
Fees (1)
Non-
monetary
benefits
Performance
Rights
Options
Special
exertion
Executive
Remuneration
(2)
Total
% of
remuneration
that consists
of
options/rights
$
$
$
$
$
$
22002211
James D Calaway
Julian Babarczy
Alan Davies
Patrick Elliott (4)
John Hofmeister (4)
Rose McKinney-James (3)
Margaret R Walker (3)
Total
2020
James D Calaway
Julian Babarczy
Alan Davies
Patrick Elliott
John Hofmeister
Total
199,349
66,642
66,516
28,896
67,546
30,144
30,144
489,237
225,725
5,520
75,255
82,531
82,531
471,562
-
-
-
-
-
-
-
-
-
-
-
-
-
-
45,000
30,000
45,000
45,000
45,000
-
-
13,750
13,750
27,500
210,000
-
-
-
-
-
-
-
-
401,973
646,322
96,642
111,516
73,896
112,546
43,894
43,894
401,973
1,128,710
45,000
-
45,000
45,000
45,000
180,000
411,606
-
-
-
-
411,606
682,331
5,520
120,255
127,531
127,531
1,063,168
%
7%
31%
40%
61%
40%
31%
31%
21%
7%
0%
37%
35%
35%
17%
(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 an Executive Director
(2)
(3) Rose McKinney-James and Margaret Walker were appointed to the Board effective 1 February 2021
(4) Patrick Elliott and John Hofmeister ceased to be Directors during the financial year.
IONEER LTD 2021 ANNUAL REPORT 26
remuneration report – audited continuedioneer Annual Report 2021
Remuneration report
7. Interests held by executive chairman and non-executive directors
Movement in equity
As part of the Nomination and Remuneration Committees review of Board member remuneration, the Committee reviewed
the topic of minimum shareholding requirements in financial year FY2021. The Committee agreed to a requirement that
Board Members hold an amount of equity equal to at least one year’s retainer fee, to be attained over a three-year period.
The requirement goes into effect in FY2022.
Ordinary shares
Balance at the start
of the year
Acquired
Disposed
Other
22002211
James D Calaway
Julian Babarczy
Alan Davies
Patrick Elliott (3)
John Hofmeister (3)
Rose McKinney-James (2)
Margaret R Walker (2)
Total
2020
James D Calaway
Julian Babarczy (1)
Alan Davies
Patrick Elliott
John Hofmeister
Total
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
-
-
-
-
-
-
-
-
-
-
384,254
-
950,000
1,334,254
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Balance at the
end of the
year
31,600,000
13,600,000
2,750,152
-
-
-
-
-
-
-
(19,446,722)
(2,411,231)
-
-
(21,857,953)
47,950,152
-
13,600,000
-
-
-
13,600,000
31,600,000
13,600,000
2,750,152
19,446,722
2,411,231
69,808,105
Julian Babarczy was appointed to the Board effective 1 June 2020 and held these shares at the date of appointment.
(1)
(2) Rose McKinney-James and Margaret Walker were appointed to the Board effective 1 February 2021.
(3) Pat Elliott and John Hofmeister ceased to be directors during the year.
Movement in performance rights
The following performance rights were granted to the two new Directors on appointment.
Year ended 30 June
Vesting Date
Balance at
the start of
the year
Number
rights
granted
Vested
Balance at
the end of
the year
22002211
Rose McKinney-James
Margaret R Walker
1/02/2024
1/02/2024
Total
2020
Total
Options
-
-
-
-
300,000
300,000
600,000
-
300,000
300,000
600,000
-
-
-
The following options were granted during the financial year.
PP aarrttiicciippaannttss
All non-executive directors as at 30 June 2020
II nn ssttrruummeennttss iissssuueedd
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 2021 AGM.
FF aaiirr vvaalluuee
$45,000
DDaattee ooff ggrraanntt
16 November 2020
VV ee ssttiinngg
EE xx ppiirryy ddaattee
1 year from the date of grant – 16 November 2021
5 years from the date of grant - 16 November 2025
IONEER LTD 2021 ANNUAL REPORT 27
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Remuneration report
Movement in options
Year ended 30 June
2021
Vesting
Date
Expiry
Date
James D Calaway
Sub total
Julian Babarczy
Sub total
Alan Davies
Sub total
Patrick Elliott (2)
Sub total
John Hofmeister (2)
13/04/17
13/04/17
13/04/17
09/11/19
14/11/20
16/11/21
13/04/22
13/04/22
13/04/22
09/11/23
14/11/24
16/11/25
16/11/21
16/11/25
23/05/18
23/05/19
23/05/20
09/11/19
14/11/20
16/11/21
23/05/22
23/05/22
23/05/22
09/11/23
14/11/24
16/11/25
09/11/19
14/11/20
16/11/21
09/11/23
14/11/24
16/11/25
23/05/18
23/05/19
23/05/20
09/11/19
14/11/20
16/11/21
23/05/22
23/05/22
23/05/22
09/11/23
14/11/24
16/11/25
Sub total
Rose McKinney-James
Sub total
Margaret R Walker
Sub total
Total
Year ended 30 June
2020
Vesting
Date
Expiry
Date
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
Balance
beginning
financial
year
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
Balance at
beginning
of
financial
year
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
Granted as
remuneration
Exercised Exercise
price
Amount
paid
Other (2)
(1)
Number
Number
-
-
-
-
-
326,323
326,323
326,323
326,323
-
-
-
-
-
326,323
326,323
-
-
326,323
326,323
-
-
-
-
-
326,323
326,323
-
-
-
-
1,631,615
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
$
0.150
0.200
0.250
0.242
0.243
0.185
0.185
0.200
0.200
0.200
0.242
0.243
0.185
0.024
0.243
0.185
0.200
0.200
0.200
0.242
0.243
0.185
-
-
-
-
$
$
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(357,710)
(326,797)
(326,323)
(1,010,830)
(200,000)
(200,000)
(100,000)
(357,710)
(326,797)
(326,323)
(1,510,830)
-
-
-
-
(2,521,660)
Granted as
remuneration
Exercised Exercise
price
Amount
paid
Expired
(1)
Balance
end
financial
year
Number
16,000,000
12,000,000
12,000,000
357,710
326,797
326,323
41,010,830
326,323
326,323
200,000
200,000
100,000
357,710
326,797
326,323
1,510,830
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
42,847,983
Balance
end
financial
year
Number
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
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
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
(1)
(2)
These options and those issued in 2019 and 2020, 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.
Patrick Elliott and John Hofmeister ceased to be Directors during the financial year.
IONEER LTD 2021 ANNUAL REPORT 28
remuneration report – audited continuedioneer Annual Report 2021
consolidated statement of profit and loss
Consolidated statement of profit and loss and other comprehensive
and other comprehensive income
income
For the year ended 30 June 2021
for the year ended 30 June 2021
Exploration expenditure written off
Other income
Employee benefits expensed
Other expenses
LL oo ssss ffrroomm ooppeerraattiinngg aaccttiivviittiieess
Finance income
Finance costs
NN eett ffiinnaannccee ccoossttss
Loss before tax
Income tax expense
Loss for the year
Loss attributable to equity holders of the company
II tt eemmss tthhaatt mmaayy bbee rreeccllaassssiiffiieedd ssuubbsseeqquueennttllyy ttoo pprrooffiitt aanndd lloossss
Foreign currency translation difference on foreign operations
OOtt hheerr ccoommpprreehheennssiivvee iinnccoommee//((lloossss)) ((nneett ooff ttaaxx))
TToo tt aall ccoommpprreehheennssiivvee pprrooffiitt // ((lloossss)) ffoorr tthhee yyeeaarr
TToo tt aall ccoommpprreehheennssiivvee iinnccoommee // ((lloossss)) aattttrriibbuuttaabbllee ttoo tthhee oowwnneerrss ooff
tt hhee ccoommppaannyy
EE aa rrnniinnggss ppeerr sshhaarree
Basic loss per ordinary share
Diluted loss per ordinary share
30-Jun
30-Jun
Note
2.1
2.2
7.1
2.3
2.4
2.4
2.4
3.1
2.5
2.5
2021
A$'000
(48)
-
(5,899)
(3,008)
(8,955)
97
(1,468)
(1,371)
(10,326)
-
(10,326)
(10,326)
(8,040)
(8,040)
(18,366)
(18,366)
22 00 22 11
CC eennttss
(0.59)
(0.59)
2020
A$'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)
22 00 22 00
CC eennttss
(0.34)
(0.34)
The consolidated statement of profit and loss and other comprehensive income should be read in conjunction with the
accompanying notes.
IONEER LTD 2021 ANNUAL REPORT 29
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consolidated statement of financial position
as at 30 June 2021
Consolidated statement of financial position
As at 30 June 2021
CC uurr rreenntt aasssseettss
Cash assets
Receivables
TToo tt aall ccuurrrreenntt aasssseettss
NN oo nn--ccuurrrreenntt aasssseettss
Receivables
Plant and equipment
Right of use asset
Exploration and evaluation expenditure
TToo tt aall nnoonn--ccuurrrreenntt aasssseettss
TToo tt aall aasssseettss
CC uurr rreenntt lliiaabbiilliittiieess
Payables
Provisions
TToo tt aall ccuurrrreenntt lliiaabbiilliittiieess
NN oo nn--ccuurrrreenntt lliiaabbiilliittiieess
Payables - non-current
TToo tt aall NNoonn--ccuurrrreenntt lliiaabbiilliittiieess
TToo tt aall lliiaabbiilliittiieess
NN eett aasssseettss
EE qq uuiittyy
Contributed equity
Reserves
Accumulated losses
TToo tt aall eeqquuiittyy
Note
4.1
4.2
4.2
4.3
4.4
4.5
4.6
4.7
4.6
5.1
5.2
30-Jun
Consolidated
2021
A$'000
30-Jun
Consolidated
2020
A$'000
83,078
359
83,437
266
3
309
114,375
114,953
198,390
6,881
375
7,256
79
79
7,335
191,055
230,730
3,732
(43,407)
191,055
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
The consolidated statement of financial position should be read in conjunction with the accompanying notes.
IONEER LTD 2021 ANNUAL REPORT 30
ioneer Annual Report 2021
consolidated statement of cash flows
for the year ended 30 June 2021
Consolidated statement of cashflows
For the year ended 30 June 2021
CC aa ss hh fflloowwss ffrroomm ooppeerraattiinngg aaccttiivviittiieess
Payment to suppliers and employees
Interest and other finance costs paid
NN eett ccaasshh fflloowwss uusseedd iinn ooppeerraattiinngg aaccttiivviittiieess ((iinncclluussiivvee ooff GGSSTT))
4.1
Note
CC aa ss hh fflloowwss ffrroomm iinnvveessttiinngg aaccttiivviittiieess
Expenditure on mining exploration
Purchase of equipment
Interest received
NN eett ccaasshh fflloowwss uusseedd iinn iinnvveessttiinngg aaccttiivviittiieess
CC aa ss hh fflloowwss ffrroomm ffiinnaanncciinngg aaccttiivviittiieess
Proceeds from the issue of shares
Proceeds from exercise of options
Equity raising expenses
Payments of lease liability
NN eett ccaasshh fflloowwss rreecceeiivveedd ffrroomm ffiinnaanncciinngg aaccttiivviittiieess
NN eett iinnccrreeaassee ((ddeeccrreeaassee)) iinn ccaasshh hheelldd
Cash at the beginning of the financial year
Effect of exchange rate fluctuations on balances of cash held in
USD
CC ll oossiinngg ccaasshh ccaarrrriieedd ffoorrwwaarrdd
4.3
5.1
5.1
5.1
4.1
2021
A$'000
(6,487)
-
(6,487)
(23,677)
(6)
39
(23,644)
80,000
-
(3,515)
(107)
76,378
46,247
38,268
(1,437)
83,078
2020
A$'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
The consolidated statement of cash flows should be read in conjunction with the accompanying notes.
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IONEER LTD 2021 ANNUAL REPORT 31
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consolidated statement of changes in equity
Consolidated statement of changes in equity
for the year ended 30 June 2021
For the year ended 30 June 2021
Foreign
currency
translatio
n reserve
A$'000
1,566
-
(175)
(175)
(175)
-
-
-
-
-
-
-
1,391
1,391
-
AA ss aatt 11 JJuullyy 22001199
LL oo ssss ffoorr tthhee yyeeaarr eennddeedd 3300 JJuunnee 22002200
OOtt hheerr ccoommpprreehheennssiivvee iinnccoommee
Foreign currency translation differences
on foreign operations
TToo tt aall ootthheerr ccoommpprreehheennssiivvee iinnccoommee
TToo tt aall ccoommpprreehheennssiivvee iinnccoommee ffoorr tthhee yyeeaarr
II ss ss uuee ooff sshhaarree ccaappiittaall
Issued
capital
Note
A$'000
113,013
-
-
-
-
Ordinary shares cash
Ordinary shares non-cash
Proceeds from unlisted options exercised
5.1
40,000
5.1
578
SShhaa rree--bbaasseedd ppaayymmeennttss
Share-based payments
expensed/capitalised
Fair value of unlisted options exercised
Fair value of performance rights vested
SShhaa rree iissssuuee ccoossttss
AA ss aatt 3300 JJuunnee 22002200
AA ss aatt 11 JJuullyy 22002200
LL oo ssss ffoorr tthhee yyeeaarr eennddeedd 3300 JJuunnee 22002211
OOtt hheerr ccoommpprreehheennssiivvee iinnccoommee
Foreign currency translation differences
on foreign operations
TToo tt aall ootthheerr ccoommpprreehheennssiivvee iinnccoommee
TToo tt aall ccoommpprreehheennssiivvee iinnccoommee ffoorr tthhee yyeeaarr
II ss ss uuee ooff sshhaarree ccaappiittaall
Ordinary shares cash
Ordinary shares non-cash
SShhaa rree--bbaasseedd ppaayymmeennttss
Share-based payments
expensed/capitalised
Fair value of unlisted options exercised
Fair value of performance rights vested
SShhaa rree iissssuuee ccoossttss
AA ss aatt 3300 JJuunnee 22002211
5.2
5.2
5.2
5.1
-
1,076
422
(1,799)
153,290
153,290
-
-
-
-
(8,040)
(8,040)
(8,040)
5.1
5.2
5.2
5.2
5.1
80,000
374
-
-
581
(3,515)
230,730
-
-
-
-
-
-
(6,649)
Equity
compensatio
n reserve
Accumulate
d losses
Total
equity
A$'000
A$'000
A$'000
8,711
-
(27,635)
(5,446)
95,655
(5,446)
-
-
-
-
-
-
1,233
(1,076)
(422)
-
8,446
8,446
-
-
-
-
-
-
2,516
-
(581)
-
10,381
-
-
(175)
(175)
(5,446)
(5,621)
-
-
-
40,000
-
578
-
-
-
-
(33,081)
1,233
-
-
(1,799)
130,046
(33,081)
(10,326)
130,046
(10,326)
-
(8,040)
-
(10,326)
(8,040)
(18,366)
-
-
80,000
374
-
-
-
-
(43,407)
2,516
-
-
(3,515)
191,055
The consolidated statement of changes in equity should be read in conjunction with the accompanying notes .
IONEER LTD 2021 ANNUAL REPORT 32
ioneer Annual Report 2021
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 2021 was authorised for issue in accordance with a
resolution of the Directors on 15 September 2021.
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 2020.
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 pa yable 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 has adopted all the new or amended Accounting Standards and Interpretations issued by the Australian
Accounting Standards Board (“AASB”) that are mandatory for the current reporting period.
Any new or amended Accounting Standards or Interpretations that are not yet mandatory have not been early adopt ed.
The adoption of these Accounting Standards and Interpretations did not have any significant impact on the financial
performance or position of the Group.
The following standards and interpretations that have recently been issued but are not yet mandatory, have not been early
adopted by the Group for the annual reporting period ended 30 June 2021. The Group’s assessment of the impact of
these new or amended Accounting Standards and Interpretations, which are most relevant to the Group are set out below:
AASB 2020-1 Amendments to
Australian Accounting Standards –
Classification of Liabilities as Current
or Non-current
AASB 2021-2 Amendments to
Australian Accounting Standards –
Disclosure of Accounting Policies and
Definition of Accounting Estimates
AASB 2021-5 Amendments to
Australian Accounting Standards –
Deferred Tax related to Assets and
Liabilities arising from a Single
Transaction
Amends AASB 101 to clarify the requirements for classifying liabilities as
current or non-current. The amendments specify that the conditions which
exist at the end of the reporting period are those which will be used to
determine if a right to defer settlement of a liability exists. These
amendments are applied retrospectively.
Amends AASB 7, 101 and 108 to provide definition and clarifications on
accounting estimates and clarify the concept of materiality in the cont ext of
disclosure of accounting policies. The amendments are applied
prospectively.
Amends AASB 112 to narrow the scope of the initial recognition exemption
so that it does not apply to transactions that give rise to equal and offsetting
temporary differences and clarify that the exemption does not apply to
transactions such as leases and decommissioning obligations.
IONEER LTD 2021 ANNUAL REPORT 33
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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 (2020: 100%).
Transactions eliminated on consolidation
All inter-company balances and transactions, including unrealised profits aris ing 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 determine d 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 85.
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.
IONEER LTD 2021 ANNUAL REPORT 34
notes to and forming part of the financial statements continuedioneer Annual Report 2021
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.
The consolidated financial statements continue to be presented in Australian dollars, which is the parent entity’s
functional currency. However, in FY2022 it is the Group’s intention to change the presentation currency to United States
Dollars.
Transactions and balances
Foreign currency transactions are translated at the foreign exchange rate at the date of the transaction. Mo netary 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.
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.
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IONEER LTD 2021 ANNUAL REPORT 35
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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
Australia
Total
Exploration expenditure - non core
Other income
Reportable segment profit / (loss)
Employee benefits and other
expenses
Net financing (expense) / income
NN eett lloossss bbeeffoorree iinnccoommee ttaaxx
SSeegg mmeenntt aasssseettss
Production assets
Exploration assets
Other assets
TToo tt aall aasssseettss
SSeegg mmeenntt lliiaabbiilliittiieess
Payables
Provisions
Total current liabilities
Payables
Total non-current liabilities
TToo tt aall lliiaabbiilliittiieess
NN eett aasssseettss
Major customers
2021
$’000
(48)
-
(48)
(3,366)
(2,880)
(6,294)
2020
$’000
2021
$’000
2020
$’000
2021
$’000
2020
$’000
(81)
138
57
-
-
-
-
-
-
(48)
-
(48)
(81)
138
57
(2,841)
(5,541)
(5,472)
(8,907)
(8,313)
1
(2,783)
1,509
(4,032)
2,809
(1,371)
(2,663)
(10,326)
2,810
(5,446)
114,375
18,019
94,824
9,764
132,394
104,588
5,857
215
6,072
-
-
2,095
189
2,284
404
404
6,072
2,688
126,322
101,900
-
65,996
65,996
1,024
160
1,184
79
79
1,263
64,733
-
-
114,375
84,015
-
94,824
38,994
198,390
133,818
6,881
375
7,256
79
79
3,097
271
3,368
404
404
29,230
29,230
1,002
82
1,084
-
-
1,084
7,335
3,772
28,146
191,055
130,046
IONEER LTD 2021 ANNUAL REPORT 36
The Company has no major customers and nil revenues (2020: nil).
notes to and forming part of the financial statements continuedioneer Annual Report 2021
2.2 Other income
Write back of reclamation bonds
TToo tt aall ootthheerr iinnccoommee
30 June 2021
$’000
30 June 2020
$’000
--
--
138
138
In the prior year, the Group recognised, outstanding reclamation bonds previously written off as exploration expenditure.
2.3. Other expenses
General and administrative expenses
Consulting and professional costs
Depreciation and amortisation
TToo tt aall ootthheerr eexxppeennsseess
2.4. Net finance costs
Interest income from external providers
Other revenue
Net foreign exchange gain
FFii nnaannccee iinnccoommee
Bank charges
Net foreign exchange loss
Lease interest
FFii nnaannccee ccoossttss
NN eett ffiinnaannccee iinnccoommee
2,028
967
13
3,008
39
58
0
97
(20)
(1,436)
(12)
(1,468)
(1,371)
1,975
1,224
51
3,250
721
0
2,117
2,838
(20)
0
(8)
(28)
2,810
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.
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IONEER LTD 2021 ANNUAL REPORT 37
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2.5. Earnings per share
EE aa rrnniinnggss uusseedd iinn ccaallccuullaattiinngg eeaarrnniinnggss ppeerr sshhaarree
Basic and diluted loss
WWeeii gg hhtteedd aavveerraaggee nnuummbbeerr ooff oorrddiinnaarryy sshhaarreess uusseedd aass tthhee
dd eennoommiinnaattoorr
Issued ordinary shares - opening balance
Effect of shares issued
30 June 2021
$’000
30 June 2020
$’000
(10,326)
(5,446)
Number
Number
1,680,202,466
69,056,018
1,474,983,509
122,026,219
WWeeii gg hhtteedd aavveerraaggee nnuummbbeerr ooff oorrddiinnaarryy sshhaarreess
1,749,258,484
1,597,009,728
WWeeii gg hhtteedd aavveerraaggee nnuummbbeerr ooff oorrddiinnaarryy sshhaarreess ((ddiilluutteedd))
Weighted average number of ordinary shares at 30 June for basic EPS
Effect of dilution from options and rights on issue
WWeeii gg hhtteedd aavveerraaggee nnuummbbeerr ooff oorrddiinnaarryy sshhaarreess aaddjjuusstteedd ffoorr eeffffeecctt ooff
dd ii lluuttiioonn
1,749,258,484
76,171,508
1,597,009,728
53,324,084
1,825,429,992
1,650,333,812
The options are antidilutive and have been excluded from the diluted EPS calculation below
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
(0.59)
(0.59)
(0.34)
(0.34)
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 int o ordinary shares. The impact the potential ordinary
shares is treated as dilutive only when their conversion to ordinary shares would decrease EPS .
IONEER LTD 2021 ANNUAL REPORT 38
notes to and forming part of the financial statements continuedioneer Annual Report 2021
Section 3. Taxation
3.1. Taxation
TTaa xx eexxppeennssee ccoommpprriisseess::
II nnccoommee ttaaxx
Current tax benefit / (expense)
Tax expense related to movements in deferred tax balances
TToo tt aall ttaaxx ((eexxppeennssee)) // bbeenneeffiitt
NN uummeerriiccaall rreeccoonncciilliiaattiioonn bbeettwweeeenn ttaaxx ((eexxppeennssee)) // bbeenneeffiitt aanndd pprree--ttaaxx nneett
rr eess uulltt::
PPrr oo ffiitt //((LLoossss)) bbeeffoorree ttaaxx
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
Unrecognised tax losses relating to current year
Adjustments for prior years
II nnccoommee ttaaxx ((eexxppeennssee)) // bbeenneeffiitt
30 June 2021
$’000
30 June 2020
$’000
-
-
-
(10,326)
(3,098)
728
432
(113)
2,160
(109)
-
-
-
-
(5,446)
(1,634)
287
(616)
(82)
2,142
(97)
-
No provision for income tax is considered necessary in respect of the Company for the year ended 30 June 20 21. No
recognition has been given to any future income tax benefit which may arise from operating losses not claimed for tax
purposes. The Group has estimated tax loss positions across the group as follows:
NN oo nn--rreeccooggnniisseedd ttaaxx lloosssseess -- rreevveennuuee
Balance at the beginning of the period
Movement during the period
BBaa ll aannccee aatt tthhee eenndd ooff tthhee ppeerriioodd
NN oo nn--rreeccooggnniisseedd ttaaxx lloosssseess -- ccaappiittaall
Balance at the beginning of the period
Movement during the period
BBaa ll aannccee aatt tthhee eenndd ooff tthhee ppeerriioodd
TToo tt aall rreevveennuuee aanndd ccaappiittaall lloosssseess nnoott rreeccooggnniisseedd
These amounts will only be obtained if:
Australia
Revenue
AUD$'000
Jurisdiction
USA
Revenue
US$'000
Canada
Revenue
CAD$'000
13,833
3,775
17,608
6,737
2,240
8,977
134
82
216
Capital
Capital
Capital
AUD$'000
US$'000
CAD$'000
7,307
-
7,307
24,915
-
-
-
-
-
-
8,977
216
•
•
•
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 Entit ies 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.
IONEER LTD 2021 ANNUAL REPORT 39
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Section 4. Invested and working capital
4.1. Cash assets
Cash at bank
Short term deposits
TToo tt aall ccaasshh aasssseettss
CC aa ss hh ffllooww rreeccoonncciilliiaattiioonn
Reconciliation of net cash outflow from operating activities to
operating loss after tax
LL oo ssss ffoorr tthhee ppeerriioodd
AA dd jjuussttmmeennttss ttoo rreeccoonncciillee pprrooffiitt ttoo nneett ccaasshh fflloowwss::
Depreciation
Other income
Exploration expenditure written-off
Share-based payments
Net foreign exchange differences - unrealised
Interest income
Lease liabilities
CC hhaa nnggee iinn aasssseettss aanndd lliiaabbiilliittiieess dduurriinngg tthhee ffiinnaanncciiaall yyeeaarr::
Increase in trade and other receivables
Increase / (decrease) in accounts payable
NN eett ccaasshh uusseedd iinn ooppeerraattiinngg aaccttiivviittiieess
Cash assets in the consolidated statement of financial position comprise cash at bank.
4.2. Receivables
CC uurr rreenntt
Interest receivable
Other debtors
Prepayments
TToo tt aall ccuurrrreenntt ttrraaddee aanndd ootthheerr rreecceeiivvaabblleess
NN oo nn--ccuurrrreenntt
Other debtors
TToo tt aall nnoonn--ccuurrrreenntt ttrraaddee aanndd ootthheerr rreecceeiivvaabblleess
TToo tt aall ccuurrrreenntt aanndd nnoonn--ccuurrrreenntt ttrraaddee aanndd ootthheerr rreecceeiivvaabblleess
30 June 2021
$’000
30 June 2020
$’000
83,078
-
83,078
17,386
20,882
38,268
(10,326)
(5,446)
13
-
48
2,034
1,437
(39)
107
(230)
469
(6,487)
-
29
330
359
266
266
625
53
(138)
81
682
(2,116)
(721)
103
(243)
972
(6,773)
3
55
-
58
337
337
395
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 2021 ANNUAL REPORT 40
notes to and forming part of the financial statements continuedioneer Annual Report 2021
4.3. Plant and equipment
Plant and equipment - at cost
Less accumulated depreciation
TToo tt aall ppllaanntt aanndd eeqquuiippmmeenntt
RR eeccoonncciilliiaattiioonn ooff tthhee mmoovveemmeenntt
Opening balance
Additions
Disposals
Depreciation expense
Foreign exchange translation difference
CC ll oossiinngg bbaallaannccee
30 June 2021
$’000
30 June 2020
$’000
84
(81)
3
9
6
-
(12)
-
3
78
(69)
9
41
21
(2)
(51)
-
9
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 amo unt 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
TToo tt aall RRiigghhtt ooff UUssee AAsssseett
RR eeccoonncciilliiaattiioonn ooff tthhee mmoovveemmeenntt
Opening balance
Impact of adoption at 1 July 2019
Additions
Disposals
Depreciation expense
Foreign exchange translation difference
CC ll oossiinngg bbaallaannccee
465
(156)
309
322
-
230
(177)
(45)
(21)
309
434
(112)
322
-
177
257
-
(112)
-
322
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.
IONEER LTD 2021 ANNUAL REPORT 41
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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 2021.
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
RR eeccoonncciilliiaattiioonn ooff mmoovveemmeenntt
Opening balance
Additions - Rhyolite Ridge
Exploration expenditure - non core
Exploration expenditure - written off
Foreign exchange translation difference
CC aa rrrryyiinngg aammoouunntt aatt tthhee eenndd ooff tthhee ffiinnaanncciiaall yyeeaarr
30 June 2021
$’000
30 June 2020
$’000
114,375
94,824
94,824
27,805
293
(285)
(8,262)
114,375
49,366
44,362
81
(81)
1,096
94,824
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 carryin g
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
CC uurr rreenntt
Trade creditors and other payables
Accrued expenses
Lease Liabilities
TToo tt aall ccuurrrreenntt ppaayyaabblleess
NN oo nn--ccuurrrreenntt
Trade creditors and other payables
Lease Liabilities
TToo tt aall nnoonn--ccuurrrreenntt ppaayyaabblleess
TToo tt aall ccuurrrreenntt aanndd nnoonn--ccuurrrreenntt ppaayyaabblleess
5,462
1,168
251
6,881
0
79
79
6,960
1,557
1,335
205
3,097
276
128
404
3,501
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 2021 ANNUAL REPORT 42
notes to and forming part of the financial statements continuedioneer Annual Report 2021
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 accretio n 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
CC uurr rreenntt
Provision for employee benefits
TToo tt aall pprroovviissiioonnss
30 June 2021
$’000
30 June 2020
$’000
375
375
271
271
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.
65
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IONEER LTD 2021 ANNUAL REPORT 43
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Section 5. Capital structure
5.1. Share capital
Ordinary shares
30 June 2021
$’000
30 June 2020
$’000
11 ,, 88 9966,,667766,,220044 (2020: 1,680,202,466) ordinary shares, fully paid
230,730
153,290
RR eeccoonncciilliiaattiioonn ooff mmoovveemmeenntt::
Balance at the beginning of the financial
year
Ordinary shares
Ordinary shares non-cash
Exercise of unlisted options (1)
Performance rights vested (2)
Share issue costs
BBaa ll aannccee aatt tthhee eenndd ooff tthhee ffiinnaanncciiaall ppeerriioodd
Year ended
30 June 2021
Number
Year ended
30 June 2020
Number
Year ended
30 June 2021
$’000
Year ended
30 June 2020
$’000
1,680,202,466
1,474,983,509
210,526,316
2,766,272
-
3,181,150
-
1,896,676,204
200,000,000
-
3,750,000
1,468,957
-
1,680,202,466
153,290
80,000
374
-
581
(3,515)
230,730
113,013
40,000
-
1,654
422
(1,799)
153,290
(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 employees upon vesting of performance rights
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 wind ing 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 shar es
held.
Incremental costs directly attributable to the issue of new shares, options or rights are shown in eq uity 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 2021 the Company issued:
•
•
•
•
210,526,316 shares as a consequence of a share placement in March 2021
2,766,272 shares as a consequence of 2017 make-up LTI grant issued to Bernard Rowe and approved at the 2020
AGM
2,694,725 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 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
IONEER LTD 2021 ANNUAL REPORT 44
notes to and forming part of the financial statements continuedioneer Annual Report 2021
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.
SS hh aarree ooppttiioonnss
Movement in options on issue for the year ended 30 June 2021
Grant
Vesting
Expiry
date
date
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
NED's(1)
NED's(1)
NED's(1)
NED's(1)
Ex-NED's (2)
13-Apr-17
23-May-18
23-May-22
NED's(1)
13-Apr-17
23-May-19
23-May-22
Ex-NED's (2)
13-Apr-17
23-May-19
23-May-22
NED's(1)
13-Apr-17
23-May-20
23-May-22
Ex-NED's (2)
13-Apr-17
23-May-20
23-May-22
NED's (1)
09-Nov-18
09-Nov-19
09-Nov-23
Ex-NED's (2)
09-Nov-18
09-Nov-19
09-Nov-23
NED's(1)
14-Nov-19
14-Nov-20
14-Nov-24
Ex-NED's (2)
14-Nov-19
14-Nov-20
14-Nov-24
NED's(1)(3)
06-Nov-20
06-Nov-21
06-Nov-25
Ex-NED's (2)(3)
06-Nov-20
06-Nov-21
06-Nov-25
FV per
option
at grant
date
$
0.122
0.113
0.106
0.063
0.063
0.088
0.088
0.105
0.105
0.126
0.126
0.138
0.138
0.138
0.138
Exercise
price
$
Opening
balance
0.150
16,000,000
0.200
12,000,000
0.250
12,000,000
200,000
200,000
200,000
200,000
100,000
100,000
715,420
715,420
653,594
653,594
0.200
0.200
0.200
0.200
0.200
0.200
0.242
0.242
0.243
0.243
0.185
0.185
MM oovvee mmee nntt ffoorr tthh ee yyee aarr eennddeedd 3300 JJuunn ee 22002211
43,738,028
1,631,615
-
-
978,969
652,646
Issued
Exercised
Expired
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Movement in options on issue for the year ended 30 June 2020
Grant
date
Vesting
Expiry
date
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
14-Nov-19
14-Nov-20
14-Nov-24
FV per
option
at grant
date
$
0.122
0.113
0.106
0.063
0.088
0.105
0.304
0.289
0.275
0.263
0.126
0.138
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)
Exercise
price
$
Opening
balance
0.150
16,000,000
0.200
12,000,000
0.250
12,000,000
0.200
0.200
0.200
0.125
0.150
0.175
0.200
400,000
400,000
200,000
1,250,000
1,250,000
1,250,000
1,250,000
0.242
1,430,840
Issued
Exercised
Expired
-
-
-
-
-
-
(1,250,000)
(1,250,000)
-
-
-
-
-
-
-
-
(625,000)
(625,000)
(625,000)
(625,000)
0.243
-
1,307,188
-
-
-
-
1,430,840
1,307,188
MM oovvee mmee nntt ffoorr tthh ee yyee aarr eennddeedd 3300 JJuunn ee 22002200
47,430,840
1,307,188
(3,750,000)
(1,250,000)
43,738,028
(1) NED’s refers to Non-executive directors.
(2)
(3) During the current financial year each non-executive director was granted 326,323 options under the new Equity Incentive Plan in lieu of director
Ex-NED’s refers to former Non-executive directors.
fees. For further details refer to the remuneration report.
IONEER LTD 2021 ANNUAL REPORT 45
Closing
balance
16,000,000
12,000,000
12,000,000
200,000
200,000
200,000
200,000
100,000
100,000
715,420
715,420
653,594
653,594
978,969
652,646
45,369,643
Closing
balance
16,000,000
12,000,000
12,000,000
400,000
400,000
200,000
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
67
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A
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S
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H
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A
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L
O
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R
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PPee rrffoorrmmaannccee rriigghhttss
Movement in performance rights on issue for the year ended 30 June 2021
Market
Value per
right at
grant date
Opening
balance
Grant
Vesting
Issued
Exercised
Lapsed
Closing
balance
date
date
$
Number
Number
Number
Number
Number
Retention on employment - KMP (1)
08-Aug-19
14-Nov-19
0.175
244,382
(244,382)
Retention on employment- staff
01-Jul-19
01-Jul-20
0.135
169,457
(169,457)
STI - KMP
01-Jul-19
01-Jul-20
0.135
1,284,953
(1,284,953)
Retention on employment- staff
15-Jul-19
15-Jul-20
Retention on employment - KMP (1)
08-Aug-19
14-Nov-20
0.185
0.175
256,156
(256,156)
244,378
(244,378)
Retention on employment - KMP
14-Nov-18
14-Nov-20
0.175
244,378
Performance Rights - Class C - KMP
27-Nov-17
27-Nov-20
0.225
486,425
Retention on employment- staff
06-May-19
06-May-21
Catch-up LTIs - KMP
06-Nov-20
01-Jul-21
2020 cash bonus conversion - KMP
01-Jul-20
01-Jul-21
2020 cash bonus conversion - staff
01-Jul-20
01-Jul-21
0.190
0.189
0.124
0.124
251,021
2,766,272
1,334,562
1,475,042
(244,378)
(486,425)
(251,021)
Catch-up LTIs - KMP
01-Jul-19
01-Jul-21
0.135
1,519,208
Retention on employment- staff
01-Jul-19
01-Jul-21
0.135
169,457
Retention on employment- staff
15-Jul-19
15-Jul-21
Retention on employment - KMP (1)
08-Aug-19
14-Nov-21
256,156
0.185
0.175
244,378
Retention on employment - KMP
14-Nov-18
14-Nov-21
0.175
244,378
Retention on employment- staff
06-May-19
06-May-22
2019 LTI - performance based - KMP
06-Nov-20
01-Jul-22
2019 LTI - time based - KMP
06-Nov-20
01-Jul-22
2019 LTI -performance based - KMP
01-Jul-20
01-Jul-22
0.190
0.170
0.189
0.140
251,021
1,659,763
1,106,509
1,676,363
LTI - KMP
01-Jul-19
01-Jul-22
0.135
1,125,434
Sign on Performance Rights - KMP
01-Jul-19
01-Jul-22
0.135
956,145
Retention on employment- staff
01-Jul-19
01-Jul-22
0.135
169,457
Retention on employment- staff
15-Jul-19
15-Jul-22
0.185
256,156
Retention on employment- KMP
01-Aug-19
01-Aug-22
0.186
741,120
Retention on employment- staff
14-Oct-19
14-Oct-22
0.184
169,699
-
-
-
-
-
-
-
-
2,766,272
1,334,562
1,475,042
1,519,208
169,457
256,156
244,378
244,378
251,021
1,659,763
1,106,509
1,676,363
1,125,434
956,145
169,457
256,156
741,120
169,699
Retention on employment- staff
31-Mar-20
31-Mar-23
0.085
555,435
(555,435)
-
30-Jun-20
30-Jun-23
0.122
280,000
Special award
Special award
30-Jun-20
30-Jun-23
2020 LTI - performance based - KMP
06-Nov-20
01-Jul-23
2020 LTI - time based - KMP
06-Nov-20
01-Jul-23
2020 LTI - performance based - staff
01-Jul-20
01-Jul-23
2020 LTI - time based - staff
01-Jul-20
01-Jul-23
2020 LTI - performance based - KMP
01-Jul-20
01-Jul-23
2020 LTI time based - KMP
01-Jul-20
01-Jul-23
Retention on employment- staff
30-Sep-20
30-Sep-23
Retention on employment- directors
01-Feb-21
01-Feb-24
0.122
0.167
0.189
0.137
0.124
0.137
0.124
0.117
0.330
200,000
2,016,774
1,344,516
1,588,715
2,354,570
3,642,025
2,428,016
226,129
600,000
280,000
200,000
2,016,774
1,344,516
1,588,715
2,354,570
3,642,025
2,428,016
226,129
600,000
MM oovvee mmee nntt ffoorr tthh ee yyee aarr eennddeedd 3300 JJuunn ee 22002211
9,586,056
24,952,394
(3,181,150)
(555,435)
30,801,865
(1)
These retention on employment awards represent 50% increase in entitlement due to an administrative error.
IONEER LTD 2021 ANNUAL REPORT 46
notes to and forming part of the financial statements continuedioneer Annual Report 2021
Movement in performance rights on issue for the year ended 30 June 2020
Market
Value per
right at
grant date
Opening
balance
Grant
Vesting
Issued
Exercised
Lapsed
Closing
balance
date
date
$
Number
Number
Number
Number
Number
Class B
Class C
Class D
27-Nov-17
27-Nov-19
27-Nov-17
27-Nov-20
14-Nov-18
14-Nov-19
Retention on employment - KMP
08-Aug-19
14-Nov-19
Retention on employment - KMP
08-Aug-19
14-Nov-20
Retention on employment - KMP
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
08-Aug-19
01-Jul-20
08-Aug-19
01-Jul-22
Retention on employment - staff
01-Jul-19
01-Jul-20
Catch-up LTIs - KMP
08-Aug-19
01-Jul-21
Retention on employment - staff
01-Jul-19
01-Jul-21
Retention on employment - KMP
01-Jul-19
01-Jul-22
Retention on employment - staff
01-Jul-19
01-Jul-22
Retention on employment - staff
15-Jul-19
15-Jul-20
Retention on employment - staff
15-Jul-19
15-Jul-21
Retention on employment - staff
15-Jul-19
15-Jul-22
Retention on employment - KMP
01-Aug-19
01-Aug-22
Retention on employment - staff
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 (4)
30-Jun-20
30-Jun-23
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
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(486,425)
-
(418,936)
244,382
(244,382)
244,378
244,378
-
-
251,021
(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
(204,580)
169,699
555,435
480,000
-
-
-
-
486,425
-
-
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
MM oovvee mmee nntt ffoorr tthh ee yyee aarr eennddeedd 3300 JJuunn ee 22002200
1,391,786
9,799,614
(1,605,344)
-
9,586,056
For further details regarding the Equity Incentive Plan (2018) and the Option Plan refer to note 7.3.
5.2. Reserves
EE qq uuiittyy ccoommppeennssaattiioonn rreesseerrvvee
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
FFoo rr eeiiggnn ccuurrrreennccyy ttrraannssllaattiioonn rreesseerrvvee
Balance at the beginning of period
Foreign currency translation differences for foreign operations
Balance at the end of the financial period
TToo tt aall rreesseerrvveess
30 June 2021
$’000
30 June 2020
$’000
8,446
2,516
-
(581)
10,381
1,391
(8,040)
(6,649)
3,732
8,711
1,233
(1,076)
(422)
8,446
1,566
(175)
1,391
9,837
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.
IONEER LTD 2021 ANNUAL REPORT 47
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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 dire ctly
(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 (2020: Nil).
IONEER LTD 2021 ANNUAL REPORT 48
notes to and forming part of the financial statements continuedioneer Annual Report 2021
b) Liquidity risk
Liquidity risk is the risk that the Group will not have sufficient liquidity to meet its financial obligations as they fall d ue.
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
Note
Less than
1 year 1-2 years
$’000
$’000
2-5 years
$’000
More than 5
years
$’000
Consolidated - 2021
Payables
Lease Liabilities
TToo tt aall
Consolidated - 2020
Payables
4.6
4.6
6,630
251
66 ,, 88 8811
0
79
77 99
4.6
3,135
408
0
0
00
0
0
0
00
0
Total
$’000
6,630
330
66 ,, 99 6600
3,543
c) Capital management risk
The overriding objective of the Group’s capital management strategy is to increase shareholder returns whilst maintaining
the flexibility to pursue the strategic initiatives within a prudent capital structure.
The primary objective of the capital management policy is to ensure the Group maintains a strong credit rating and
appropriate capital ratios to support the development of the Company’s assets.
The Company manages its capital structure and makes adjustments to it in light of economic conditions. During the
financial year the company undertook a capital raise through the issue of new shares. The Board believes that this capital
raise secures the Company’s financial position until the ‘decision to mine’ stage of the Rhyolite Ridge Lithium-Boron Project.
d) Market risk
Foreign exchange risk
The Group operates internationally and is exposed to foreign exchange risk arising from foreign currency exposures,
primarily with respect to United States dollars.
71
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IONEER LTD 2021 ANNUAL REPORT 49
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The Company operates bank accounts in US Dollars. Over 79% of the Company’s cash reserves are held in US Dollars. The
Directors are satisfied that the future operations of the company will be in the USA so it is prudent to hold cash reserves in
US dollars to avoid any unnecessary currency exposure.
EE xxcchhaannggee rraatteess aapppplliieedd dduurriinngg tthhee yyeeaarr::
AUD / USD
Financial instruments denominated in United States
dollars
Financial
assets
Cash
Trade and other receivables
Financial liabilities
Trade and other payables
Lease liabilities
Average rate for the
year ended 30 June
2021
Spot rate at the end of the
reporting period
2021
0.7492
2021
A$’000
61,992
32
5,954
118
0.7518
2020
A$’000
30,377
32
2,443
248
An increase in the AUD:USD foreign exchange rate of 10% would result in a:
•
•
•
$5,636,000 increase in current year loss (30 June 2020: $2,762,000) and decrease US dollar currency bank balances.
$3,000 decrease in US dollar receivables (30 June 2020: $3,000) with nil impact on current year loss because the
impact is taken to foreign currency translation reserve
$538,000 increase in payables (30 June 2020: $222,000)
A decrease in the AUD:USD foreign exchange rate of 10% would result in:
•
•
•
a $6,888,000 decrease in current year loss (30 June 2020: $3,375,000) and increase US dollar currency bank
balances.
a $4,000 increase in US dollar receivables (30 June 2020: $3,000) with nil impact on current year loss because the
impact is taken to foreign currency translation reserve.
a $657,000) decrease in payables (30 June 2020: $271,000 with 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 resul t 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 $451,000 (30 June 2020 $473,000) 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 $451,000 (30
June 2020 $473,000) 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.
IONEER LTD 2021 ANNUAL REPORT 50
notes to and forming part of the financial statements continuedioneer Annual Report 2021
Section 7. Employee benefits and KMP disclosures
7.1. Employee benefits expensed
Non-Executive Director fees
Executive Director fees
Employee benefits expense
Share-based payments
TToo tt aall eemmppllooyyeeee bbeenneeffiitt eexxppeennssee
7.2. Key management personnel disclosure
Key management personnel (KMP) comprised the following:
Short-term employee
Post-employment benefits
Other long-term benefits
Share-based payments
TToo tt aall ppaayymmeennttss ttoo KKMMPP
30 June 2021
30 June 2020
$’000
$’000
489
402
2,974
2,034
5,899
883
3,498
682
5,063
30 June 2021
30 June 2020
$’000
3,545
111
-
2,397
6,053
$’000
3,818
178
-
986
4,982
The 2020 table has been restated for the portion of the 2020 cash bonus that was taken as a 12 month performance right
with 20% premium provided for equity.
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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IONEER LTD 2021 ANNUAL REPORT 51
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7.3.
Share-based payments
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 two share schemes in operation. Under these plans, options or
performance rights which may be converted into ordinary shares have been granted to non-executive directors, 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 granted, and for the performance based
performance rights the fair value is determined by using a Monte Carlo model for the valuation of the perf ormance rights
subject to the relative 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:
Type
Options
Non-Executive
Directors
Key terms
Expiry Date
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.
Tranche 1: 9 Nov 23
Tranche 2: 14 Nov 24
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
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
IONEER LTD 2021 ANNUAL REPORT 52
notes to and forming part of the financial statements continuedioneer Annual Report 2021
Type
Key terms
Expiry Date
Performance rights – performance-based
LTI grants
N/A
•
•
36 month vesting period from 1 July of relevant
period
The Board will employ discretion in assessing Project
results and determining vesting of performance units;
below, at or above targets:
o HHSSEE :: Top quartile HSE & Community
performance (North American Mining Projects)
o CC oo nnssttrruuccttiioonn:: Construction schedule on pace for
start-up as stated at FID
o OOpp ss RR eeaaddiinneessss:: Operational readiness (hiring,
policies, systems etc) on track
o CC oo sstt CC oo nnttrrooll:: Project spend within margin
established at FID
SShhaa rree pp rr iiccee:: INR share price compared to
comparator group
o
•
•
Unlike producing organizations with established
operations that typically aim to deliver performance
conditions tied to anticipated revenues, production
levels and growth objectives, ioneer has a single pre-
production project with less certainty or control over
key deliverables. Providing the Board with the
discretion to assess the extent of delivery, the
importance/value of the various targets delivered (or
not) allows the ability to balance shareholder
expectations and KMP reward, motivation and
retention.
The Board will employ discretion in assessing Project
results and determining the vesting of performance
units; below, at or above targets (up to 200%)
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 eith er 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 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 are time based and there are no performance conditions.
• 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.
IONEER LTD 2021 ANNUAL REPORT 53
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Performance Rights Plan
In addition to the Share Option Plan discussed above, the Group established the Perfo rmance 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 is sued
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.
IONEER LTD 2021 ANNUAL REPORT 54
notes to and forming part of the financial statements continuedioneer Annual Report 2021
Section 8. Group structure
8.1 Parent entity disclosures
RR eess uulltt ffoorr tthhee ppaarreenntt eennttiittyy
Loss for the period
TToo tt aall ccoommpprreehheennssiivvee lloossss ffoorr tthhee ppeerriioodd
FFii nnaanncciiaall ppoossiittiioonn ooff tthhee ppaarreenntt eennttiittyy
Current assets
Non-current assets
Total assets
Current liabilities
Non-current liabilities
Total liabilities
NN eett aasssseettss
Contributed equity
Reserves
Accumulated losses
TToo tt aall eeqquuiittyy
30 June 2021
$’000
30 June 2020
$’000
(4,033)
(4,033)
213,831
293
214,124
1,184
79
1,263
212,861
230,730
10,381
(28,250)
212,861
(8,829)
(8,829)
138,441
162
138,603
1,083
-
1,083
137,520
153,291
8,446
(24,217)
137,520
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 sub sidiaries.
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
ioneer Canada ULC
Note
Country of
incorporation
USA
USA
USA
USA
USA
USA
Canada
Canada
Canada
1
1
2021
2020
ownership
interest
100
100
100
100
100
100
-
-
100
ownership
interest
100
100
100
100
100
100
100
100
--
(1) Canadian companies were amalgamated on 1 January 2021 to form ioneer Canada ULC.
IONEER LTD 2021 ANNUAL REPORT 55
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Section 9. Other disclosures
9.1 Capital and other commitments
PPaa yyaa bbllee wwiitthhiinn oonnee yyeeaarr
Water rights
Non-cancellable lease commitments
Exploration and evaluation expenditure commitments
Sub total
PPaa yyaa bbllee aafftteerr oonnee yyeeaarr bbuutt nnoott llaatteerr tthhaann ffiivvee yyeeaarrss
Water rights
Non-cancellable lease commitments
Exploration and evaluation expenditure commitments
Sub total
PPaa yyaa bbllee llaatteerr tthhaann ffiivvee yyeeaarrss
Water rights
Non-cancellable operating lease rental commitments
Exploration and evaluation expenditure commitments
Sub total
TToo tt aall ccoommmmiittmmeennttss
Water rights
30 June 2021
$’000
30 June 2020
$’000
274
161
176
612
553
230
353
1,136
-
-
-
-
269
44
253
566
603
51
506
1,160
-
-
-
-
1,748
1,726
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.
IONEER LTD 2021 ANNUAL REPORT 56
notes to and forming part of the financial statements continuedioneer Annual Report 2021
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 2021.
Auditors remuneration
AA uudd iitt sseerrvviicceess
Ernst & Young
Audit and review of financial statements
30 June 2021
$
30 June 2020
$
60,500
46,100
9.3
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.
9.4
Events after reporting date
There has not been in the period since 30 June 2021 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.
IONEER LTD 2021 ANNUAL REPORT 57
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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 2021 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 Co nsolidated 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 2021.
On behalf of the Board
JJaa mmeess DD CCaallaawwaayy
EE xxeeccuuttiivvee CChhaaiirrmmaann
Sydney, 15 September 2021
IONEER LTD 2021 ANNUAL REPORT 58
ioneer Annual Report 2021
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 2021, 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 2021
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
Liability limited by a scheme approved under Professional Standards Legislation
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independent auditor’s report
continued
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 2021 the Group recorded capitalised
exploration & evaluation (E&E) assets of $114.4
million relating to the Rhyolite Ridge project.
The carrying value of exploration and evaluation
expenditure is assessed for impairment when
facts and circumstances indicate that it 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’s exploration licenses are
current;
► 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 asset and the judgmental
nature of impairment indicator assessments
associated with exploration and evaluation
assets, we considered this to be 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 ability and 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 whether any evidence exists that
would indicate that the carrying value of
capitalised exploration and evaluation
expenditure is unlikely to be recovered
through development or sale, which included
obtaining and inspecting the definitive
feasibility study issued in April 2020 and
understanding whether any contradictory
events or conditions had arisen since its
release.
► Considered the adequacy of disclosures
included within the notes of the financial
report including those made with respect to
judgements and estimates.
A member firm of Ernst & Young Global Limited
Liability limited by a scheme approved under Professional Standards Legislation
ioneer Annual Report 2021
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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
2021 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.
A member firm of Ernst & Young Global Limited
Liability limited by a scheme approved under Professional Standards Legislation
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 within the directors' report for the year ended 30
June 2021.
In our opinion, the Remuneration Report of ioneer Ltd for the year ended 30 June 2021, 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
ioneer Annual Report 2021
85
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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
15 September 2021
A member firm of Ernst & Young Global Limited
Liability limited by a scheme approved under Professional Standards Legislation
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.
SSuummmmaarryy ooff 22002211 MMiinneerraall RReessoouurrccee && OOrree RReesseerrvvee EEssttiimmaatteess RRhhyyoolliittee RRiiddggee LLiitthhiiuumm--BBoorroonn PPrroojjeecctt
Metric
Tonnes
Li
Grade
B
Grade
Equivalent
Grade
Equivalent
Contained
Tonnes
(Mt)
(ppm)
(ppm)
Li2CO3
%
H2BO3
%
Li2CO3
kt
H2BO3
kt
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
1,800
14,550
14,150
14,270
13,800
14,200
16,250
14,650
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
580
2,700
2,620
5,310
MM ii nneerraall RReessoouurrccee
Measured Resource
Indicated Resource
MM eeaassuurreedd aanndd IInnddiiccaatteedd RReessoouurrccee
Inferred Resource
TToo ttaall MMiinneerraall RReessoouurrccee
OOrr ee RReesseerrvvee
Proved Reserve
Probable Reserve
TToo ttaall PPrroovveedd aanndd PPrroobbaabbllee OOrree RReesseerrvvee
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 Pr oject, 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 drillin g.
IONEER LTD 2021 ANNUAL REPORT 64
ioneer Annual Report 2021
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
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Schedule of tenements
As at 30 June 2021
Project
Country
Tenement ID
Tenement Name
Area
(km2)
Interest at 30
June 2021
Rhyolite Ridge
USA
NMC1118666
NLB claims (160)
Rhyolite Ridge
USA
NMC1117360
SLB claims (199)
Rhyolite Ridge
USA
NMC1171536
SLM claims (122)
Rhyolite Ridge
USA
NMC1179516
RR claims (65)
Rhyolite Ridge (1) USA
NMC1129523
BH claims (81)
SM
GD
CLD
USA
USA
USA
NMC1166813
SM claims (96)
NMC1166909
GD claims (13)
NMC1167799
CLD claims (65)
New Morenci
USA
AMC393550
MP claims (2)
(1) There is an option to purchase 100%
13.00
16.50
9.70
5.40
7.00
7.70
1.10
5.20
0.12
100%
100%
100%
100%
0%
100%
100%
100%
100%
IONEER LTD 2021 ANNUAL REPORT 66
other informationcontinuedioneer Annual Report 2021
shareholder and ASX information
Shareholder and ASX information
Information relating to shareholders at 13 September 2021 (per ASX Listing Rule 4.10)
Issued capital
The Company has 1,904,196,901 fully paid shares on issue.
Options on issue including holders of more than 20%
The Company has on issue 45,369,643 options and 28,585,557 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 voti ng rights until the options
are exercised.
Top 20 shareholders as at 13 September 2021
Name
HSBC CUSTODY NOMINEES
HSBC CUSTODY NOMINEES
CITICORP NOMINEES PTY LIMITED
J P MORGAN NOMINEES AUSTRALIA
UBS NOMINEES PTY LTD
MOPTI PTY LIMITED
BNP PARIBAS NOMS PTY LTD
HOLDREY PTY LTD
RANSDALE INVESTMENTS PTY LTD
VISTA GROVE INVESTMENTS PTY
LITHIUM INVESTORS AMERICAS LLC
BNP PARIBAS NOMINEES PTY LTD
HSBC CUSTODY NOMINEES
FNL INVESTMENTS PTY LTD
KOLLEY PTY LTD
QUALITY LIFE PTY LTD
MERRILL LYNCH (AUSTRALIA)
MR DARIEN CHARLES JAGGER
DECK CHAIR HOLDINGS PTY LTD
QUALITY LIFE PTY LTD
TToott aa ll SS eeccuu rriittiiee ss ooff TToopp 22 00 hhoollddiinnggss
Shares
%
197,018,920
10.384%
168,951,377
8.905%
155,500,801
8.196%
78,856,541
4.156%
61,873,458
3.261%
52,690,902
2.777%
41,962,571
2.212%
40,400,000
2.129%
39,850,000
2.100%
35,850,000
1.890%
31,600,000
1.666%
24,069,004
1.269%
20,397,000
1.075%
20,000,000
1.054%
20,000,000
1.054%
18,624,590
0.982%
16,700,468
0.880%
14,500,000
0.764%
14,000,000
0.738%
13,682,646
0.721%
1,066,528,278
56.213%
IONEER LTD 2021 ANNUAL REPORT 67
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Shareholder and ASX information
Distribution of shareholders
1 - 1000
1,001 - 5,000
5,001 - 10,000
10,000 - 100,000
100,001 - over
Unmarketable parcels
Minimum $500 parcel at $0.71 per unit
Substantial shareholders
Holders
216
Total Units
95,603
2,097
5,861,771
1,178
9,545,052
3,582
138,943,254
1,093
1,749,751,221
8,166
1,904,196,901
Minimum parcel size
Holders
704
122
The following are substantial shareholders registered as at 13 September 2021.
Name
Centaurus Capital LP
Shares
%
185,617,106
9.786%
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 co nfirms 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 Wo rld-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.
IONEER LTD 2021 ANNUAL REPORT 68
shareholder and ASX informationcontinuedioneer Annual Report 2021
corporate directory
Corporate Directory
Directors
James D. Calaway
Executive Chairman
Bernard Rowe
Managing Director
Julian Babarczy
Non-Executive Director
Alan Davies
Non-Executive Director
Rose McKinney-James
Non-Executive Director
Margaret Walker
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
Facsimile: +61 (2) 9922-4004
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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