AND ITS CONTROLLED ENTITIES
ABN 52 064 121 133
Jindaleelithium.com
ASX:JLL
OTCQX:JNDAF
CORPORATE DIRECTORY
Board and Management
Wayne Zekulich
Non-Executive Chair (appointed 1 February 2024)
Justin Mannolini
Non-Executive Chair (resigned 1 February 2024)
Lindsay Dudfield
Executive Director
Darren Wates
Non-Executive Director
Paul Brown
Non-Executive Director
Ian Rodger
Chief Executive Officer (appointed 22 January 2024)
Carly Terzanidis
Company Secretary
Registered Office
Level 3, 88 William Street
Perth, WA 6000
Principal Place of Business
Level 2, 9 Havelock Street
West Perth, WA 6005
Telephone:
+61 (8) 9321 7550
Facsimile:
+61 (8) 9321 7950
Email: enquiry@jindalee.net
Web:
www.jindaleelithium.com
Auditors
BDO Audit Pty Ltd
Level 9
Mia Yellagonga Tower 2
5 Spring Street
Perth, WA 6000
Legal Advisors
Hamilton Locke
Level 48, 152-158 St Georges Terrace
Perth, WA 6000
Share Registry
Automic Group
Level 5, 191 St Georges Terrace
Perth, WA 6000
Telephone:
+61 (2) 9698 5414
Securities Exchange Listing
The Company is listed on:
The Australian Securities Exchange Ltd (“ASX”)
Home Exchange: Perth, Western Australia
ASX Code: JLL
OTC Markets Group Inc
OTCQX:
JNDAF
www.otcmarkets.com
CONTENTS
DIRECTORS’ REPORT ........................................................................................................................................... 3
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME…………………………24
CONSOLIDATED STATEMENT OF FINANCIAL POSITION ................................................................................... 25
CONSOLIDATED STATEMENT OF CASH FLOWS ................................................................................................ 26
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY .................................................................................... 27
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS ............................................................................... 28
CONSOLIDATED ENTITY DISCLOSURE STATEMENT .......................................................................................... 52
DIRECTORS’ DECLARATION ............................................................................................................................... 53
AUDITOR’S INDEPENDENCE DECLARATION...................................................................................................... 54
INDEPENDENT AUDITOR’S REPORT .................................................................................................................. 55
ADDITIONAL INFORMATION ............................................................................................................................. 60
CHAIR’S LETTER
Dear Fellow Shareholder,
I am pleased to present the Chair’s Report for Jindalee Lithium Limited for the financial year 2024.
This past year has been one a mixed one for Jindalee, marked by challenging market conditions, but also
significant achievements in the ongoing development of our 100%-owned McDermitt Lithium Project.
The broader lithium market has faced substantial headwinds, with lithium prices declining approximately 80%
from their late 2022 peak. This decline was driven by increased global supply, which resulted in a challenging
capital environment, particularly for pre-development companies like ours. Jindalee’s share price mirrored this
trend, with a reduction of over 80% during the year.
Despite these challenges, our team has continued to make considerable progress in de-risking the McDermitt
Project. Notably, we have achieved key technical milestones, while gaining increased recognition and support
from various levels of the US government. This includes technical cooperation and critical discussions
regarding potential funding, which underscores the strategic importance of McDermitt to the US battery supply
chain.
We have also made notable additions to our leadership team as we transition from explorer to developer, with
myself and Ian Rodger joining the Company as Chair and CEO, respectively, in early 2024. I saw the opportunity
at Jindalee being due to its location in the US, one of the most strategic regions globally for the development
of the battery supply chain. Moreover, McDermitt is poised to produce lithium chemicals that can directly feed
into domestic battery production — avoiding reliance on export to China, a key differentiator in this market.
The broader lithium industry has been experiencing significant pressures, with Chinese spot prices well below
incentive levels, leading to mine closures and project delays globally. However, demand for electric vehicles
(EVs), battery storage and lithium remains robust, and most industry analysts predict supply deficits over
coming years, which will necessitate higher prices to incentivise new, western-sourced lithium chemical
production. McDermitt is well-positioned to capitalise on this expected upswing.
Operationally, we are proud to report significant progress on the McDermitt Project. Our flowsheet is now fully
validated, with excellent results from beneficiation and leaching test work, which culminated in the production
of battery-grade lithium carbonate from McDermitt ore. This achievement is a major milestone in the Project’s
development. Furthermore, we have advanced permitting activities and baseline environmental studies,
keeping the Project on track towards long-term success.
On the governmental front, we have made significant strides, including the signing of a Cooperative Research
and Development Agreement (CRADA) with the US Department of Energy. This partnership aims to develop
cutting-edge extraction methods that have the potential to lower costs and reduce the environmental footprint
of the Project. Additionally, we are in advanced discussions regarding a U.S. government grant application,
which could provide substantial non-dilutive funding support for the next stage of McDermitt’s development.
We are grateful for the level of political support we have received across these initiatives and acknowledge the
support of Senator Ron Wyden (senior Oregon US Federal Senator) in achieving the CRADA.
Despite the turbulent market, the strategic importance of McDermitt remains unchanged. It continues to stand
as the largest lithium deposit by contained metal in the US, with the potential to produce lithium chemicals
over multiple decades. As the global supply chain moves to decouple from China, Jindalee is uniquely
positioned to become a key player in the US drive for critical mineral independence.
In conclusion, while market conditions have been challenging, the Board remains confident that Jindalee’s
strategic positioning, operational progress, recent funding initiatives and growing government support place
us on a strong path towards long-term value creation. We thank our shareholders for their continued support
and look forward to providing further updates as we advance the McDermitt Project and navigate the evolving
lithium market landscape.
Wayne Zekulich
Non-Executive Chair
Jindalee Lithium Limited
JINDALEE LITHIUM LIMITED
DIRECTORS’ REPORT
3
DIRECTORS’ REPORT
The Directors present their report on the consolidated entity (referred to hereafter as “the Group”) consisting of Jindalee
Lithium Limited (formerly known as Jindalee Resources Limited) (referred to hereafter as “Jindalee”, the “Company” or
“Parent Entity” or “JLL”) and the entities it controlled at the end of, or during the year ended 30 June 2024.
Directors
The following persons were directors of Jindalee Lithium Limited during the whole of the financial year and up to the date
of this report, unless otherwise stated:
Lindsay Dudfield
Wayne Zekulich appointed 1 February 2024
Justin Mannolini resigned 1 February 2024
Darren Wates
Paul Brown
Principal activities
The principal activity of Jindalee Lithium Limited during the year was mineral exploration. During the year there was no
change in the nature of this activity.
Financial results
The consolidated loss of the Group after providing for income tax for the year ended 30 June 2024 was $4,687,923 (2023:
loss $2,577,277).
Dividends
No dividends have been declared since the end of the previous financial year and no dividends have been recommended
by the Directors.
Significant changes in the state of affairs
During the year there has been no significant change in the state of affairs of the Group.
Operations and financial review
Jindalee’s strategy is to identify, acquire and develop projects with the potential to transform the Company, and this
continued to be the Group’s primary focus.
During the year efforts focussed on Jindalee’s 100% owned McDermitt Lithium Project and included detailed metallurgical
test work to inform the Pre-Feasibility Study (PFS) which commenced in June 2023 and permitting activities to enable more
detailed work to be undertaken at McDermitt and derisk the Project. Jindalee also raised capital to fund the Company’s
activities, including completion of the PFS, and lodged applications for US Government grants to help advance McDermitt
towards development.
During the period the Company also announced two significant additions to the management team, effective early 2024,
with the appointment of Ian Rodger as Chief Executive Officer (CEO) and Wayne Zekulich as Chair.
JINDALEE LITHIUM LIMITED
DIRECTORS’ REPORT
4
McDermitt Lithium Project
The Mineral Resource Estimate (MRE) at the McDermitt Lithium Project contains a combined Indicated and Inferred Mineral
Resource Inventory of 3.0 Billion tonnes at 1,340 ppm lithium (Li) for a total of 21.5 Million tonnes (Mt) lithium carbonate
equivalent (LCE) at 1,000 ppm cut-off grade (Figure 1, Table 1)1.
At 21.5 Mt LCE, McDermitt is the largest lithium deposit in the United States (US) by contained lithium in Mineral Resource,
and a globally significant resource, with the deposit remaining open to the west and south.
Cut-off
Grade
(ppm Li)
Indicated Resource
Inferred Resource
Indicated and Inferred Resource
Tonnage
(Mt)
Li Grade
(ppm)
LCE
(Mt)
Tonnage
(Mt)
Li Grade
(ppm)
LCE
(Mt)
Tonnage
(Mt)
Li Grade
(ppm)
LCE
(Mt)
1,000
1,470
1,420
11.1
1,540
1,270
10.4
3,000
1340
21.5
Table 1 – Summary of 2023 McDermitt MRE1 at the reporting cut-off of 1,000 ppm. Note: totals may vary due to rounding.
Figure 1 – Plan view of McDermitt Lithium Project with completed drilling and 2023 MRE1 (at 1523mRL)
The Company confirms that it is not aware of any new information or data that materially affects the information
included in this market announcement and that all material assumptions and technical parameters underpinning the
estimates of mineral resources referenced in this market announcement continue to apply and have not materially
changed.
JINDALEE LITHIUM LIMITED
DIRECTORS’ REPORT
5
During the period Jindalee’s geological team relogged all holes drilled at McDermitt and recognised up to 12 distinctive
stratigraphic units which can be tracked across the Project (see Figure 2). Samples from Units 4, 6, 8 and 10 were confirmed
to carrying elevated lithium values, indicating excellent potential for selectively mining of these higher-grade zones, which
has positive implications for the Project. Samples from these Units within conceptual Pit Shell 6 selected for further
metallurgical test work (see Figure 2).
Figure 2 – Schematic Section C-C’ with completed drilling, simplified geology and conceptual Pit Shell 6
(Note: lateral projection onto section plane and 3x vertical exaggeration may cause distortion)
Metallurgical Test Work
Metallurgical test work aimed at optimising and refining the McDermitt flowsheet made significant advancements during
the period. The McDermitt flowsheet includes beneficiation of mined ore to enhance the leach head grade and remove acid-
consuming gangue minerals, followed by acid leaching and subsequent purification steps to produce battery-grade lithium
carbonate. The test work was conducted at Hazen Research Inc. laboratories in Colorado, United States, and managed by
Fluor Corporation, a global engineering, procurement, construction and maintenance company.
In November 2023, the Company announced promising results from the beneficiation of individual unit samples via attrition
scrubbing2. The calculated recovery for a composite sample (representing a nominal life-of-mine average feed) achieved a
recovery rate of 92.0% of the lithium to leach feed while rejecting 25.3% of the mass at a cut size of 250 microns (µm). The
average grade to leach was measured at 2,107 ppm Li, which is 18% higher than the average head grade of the metallurgical
samples (1,790 ppm Li)4 and 57% higher than the average Mineral Resource grade (1,340 ppm Li).
Initial acid leaching results announced in January 20243 demonstrated exceptional lithium extraction rates. Tests were
conducted on two leach feeds: one with a 250 µm beneficiation cut size that underwent leaching without additional grinding,
and another that was further ground to achieve 100% passing at 75 µm. Utilising 500kg of acid per tonne of leach feed, both
feeds exhibited very high lithium extraction rates, ranging from 88.8% to 99.1%. The leach test work extended for up to four
hours, with the majority of lithium extraction occurring in the first hour.
Additionally, a 300kg composite sample (comprising Units 4, 6, 8 and 10) was leached, yielding lithium in solution for
downstream test work. Purification of the lithium-rich solution was successfully completed during the period, and in July
2024, Jindalee confirmed the first production of battery-grade Lithium Carbonate (>99.5% Li2CO3) from McDermitt ore4,
validating the developed flowsheet for McDermitt.
Pre-Feasibility Study (PFS)
The McDermitt PFS commenced in June 2023 with Fluor appointed as lead engineer. Fluor possesses extensive experience
with sediment hosted lithium deposits in the US and assembled a team of highly credentialled metallurgists and engineers
to work on the study.
JINDALEE LITHIUM LIMITED
DIRECTORS’ REPORT
6
Analysis of beneficiation test work data during the June 2024 quarter revealed several optimisation opportunities5. Table 2
(250 µm cut) indicates that the lithium recovery through beneficiation and the lithium grade in the leach feed are both lower
for Units 8 and 10 compared with Units 4 and 6. This suggested that focussing the plant design on the two higher head grade
Units may be more advantageous than averaging the four units over the life of the mine.
Beneficiation
Unit
Head
Grade
(ppm Li)
Cut
(µm)
Mass
Rejection (%)
Ca
Rejection
(%)
Li Recovery
(%)
Li to
Leach
(ppm Li)
4
1,785
250
21.8
39.1
94.4
2,154
6
1,819
24.4
63.6
94.0
2,261
8
1,532
28.1
54.0
89.6
1,909
10
1,505
36.3
55.0
79.8
1,886
Pit Shell 613
1,712
25.3
51.7
92.0
2,107
Table 2 – Summary of Beneficiation Results at 250 µm cut size - Units 4, 6, 8 and 10
The focus on processing approximately equal shares of Units 4 and 6 also enabled a reduction in the beneficiation cut size.
Table 3 shows that lithium recovery through the beneficiation process can be maintained above 91%, with mass rejection
improving by 13%, calcium rejection by 14%, and lithium grade to leach improving by 10% compared to Pit Shell 6 at 250 µm
cut2. The overall upgrade in lithium to leach grade compared with head grade is 29% (Unit 4) and 28% (Unit 6).
Beneficiation
Unit
Head Grade
(ppm Li)
Cut
(µm)
Mass
Rejection (%)
Ca
Rejection
(%)
Li Recovery
(%)
Li to Leach
(ppm Li)
4
1,785
125
27.8
47.1
93.4
2,309
6
1,819
29.6
70.6
90.0
2,325
Average
28.7
58.9
91.7
2,317
Table 3 – Summary of Beneficiation Results at 125 µm cut size - Units 4 and 6
Cube Consulting continued to develop mine schedule iterations during the period, prioritising the processing of higher-grade
units from the start of operations while stockpiling lower-grade material for potential treatment in later years.
Incorporating the above changes into the PFS could reduce capital intensity and operating costs relative to the original scope.
Consequently, subsequent to the end of the period in July 20246, Jindalee announced that it is exploring these, and other
opportunities not included in the initial PFS scope, which have the potential to significantly enhance Project returns. This
additional work is expected to extend the timeline, with the PFS completion now anticipated in the fourth quarter of 2024.
POSCO MOU
In February 2023 Jindalee announced that it had signed a non-binding Memorandum of Understanding (MOU) with major
Korean conglomerate POSCO Holdings Inc. (POSCO) (NYSE: PKX), whereby POSCO and Jindalee agreed to undertake joint
research samples from McDermitt7. POSCO is a supplier of cathode active materials to major US auto maker General Motors
and this test work is designed to optimise the flowsheet for recovering lithium from McDermitt.
Jindalee shipped a large composite sample to POSCO for initial test work and following a request from POSCO, beneficiated
samples (cut size of 250 µm) were shipped to POSCO in the March 2024 quarter. Test work has commenced on these samples,
and Jindalee remains engaged in productive discussions with POSCO and will provide further updates as test results become
available in the coming months.
Exploration Permitting
Jindalee continues to de-risk the Project on multiple fronts. In addition to ongoing geological, metallurgical and engineering
studies the Company is building on environmental baseline and cultural surveys completed during 2022. In May 2023 the
Company announced the US Bureau of Land Management (BLM) had advised that the Exploration Plan of Operations (EPO)
JINDALEE LITHIUM LIMITED
DIRECTORS’ REPORT
7
for McDermitt originally submitted to the BLM in August 2022 (with additional information provided early 2023), had been
deemed complete8.
The public comment period on the EPO closed mid-September 2023 and the environmental review process required by the
National Environmental Policy Act (NEPA) commenced in January 2024. The final decision of the NEPA assessment will be
incorporated into the EPO, with this process expected to take up to 12 months. An initial draft of the Environmental
Assessment (EA) was completed in early 2024. The Company continues to work with the BLM, and additional State and
Federal agencies to further define mitigation measures for potential impacts identified by the draft EA. Progress on the EA
is on schedule with submission for public comment targeted for Q4 2024.
Once approved, the EPO will allow Jindalee to significantly increase on-site activity, including infill drilling and providing
additional, fresh samples for site investigations (e.g. geotechnical, hydrological) and further metallurgical test work.
In June 2024, a contract was award to SLR International Corporation (SLR) to develop a comprehensive overview of the
regulatory approvals likely to be required to commence construction of the Project together with a preliminary approval
schedule. SLR’s team have recent experience with successful permitting of mining projects in Oregon and Nevada.
US Government Support
Jindalee continues to engage with US Government agencies (both State and Federal) regarding opportunities to advance
the Project, including technical cooperation between agencies and the potential for US Government funding for the Project.
In April 2024 Jindalee provided an update on applications for non-dilutive grant funding lodged with both the Department
of Defense (DoD) and the Department of Energy (DoE) (Battery Manufacturing and Recycling Grant)9.
If successful, the DoD grant application is expected to provide near term co-funding for an accelerated Feasibility Study and
associated drilling and test work at the Company’s McDermitt Lithium Project, whilst the DoE grant application was for
longer-term co-funding for the engineering, procurement, construction and development of a lithium processing facility at
McDermitt following completion of the Feasibility Study. Subsequent to the end of the period, in late September 2024
Jindalee was advised that the current DoE grant application was unsuccessful19; however, the DoD grant application remains
on foot, with any potential award decision expected in the December quarter, 2024.
Subsequent to the end of the period, in mid-September 2024 Jindalee announced that it had been approved by the DoE’s
Office of Energy Efficiency and Renewable Energy for a Cooperative Research and Development Agreement (CRADA)10. The
CRADA aims to develop cutting edge extraction methods for McDermitt designed to lower costs and minimise environmental
impact, including lowering water usage and acid consumption and reducing the footprint of the Project, as well as exploring
the potential for co-products. Research will be led by Ames National Laboratory with other key members including the
Oregon Department of Geology and Mineral Industries (DOGAMI), Oregon State University, University of Nevada Reno,
Lawrence Berkeley National Laboratory and the National Energy Technology Laboratory.
Work undertaken under the CRADA will be funded by the DoE with Jindalee providing in-kind support, including access to
data, samples, and technical expertise. The CRADA has received strong support from Senator Ron Wyden, the senior US
Federal Senator for Oregon underlining the strategic importance of McDermitt to the US. Notably, Senator Wyden is also
the chair of the Senate Finance Committee as well as a senior member of the Senate Energy and Natural Resources
Committee.
Corporate
Funding
In October 2023, Jindalee completed a capital raising at $1.40 per fully paid ordinary share (Share) comprising a public
officer which raised $3.5M (before costs) and a priority offer to eligible Jindalee share and option holders which raised
$0.6M (before costs) (October Capital Raise)11. Jindalee Directors applied for a further 175,000 Shares (worth $245,000)
with Directors’ participation approved by shareholders at the Annual General Meeting (AGM) held on 22 November 2023.
JINDALEE LITHIUM LIMITED
DIRECTORS’ REPORT
8
Subsequent to the end of the period, Jindalee raised approximately $6.1M via a combination of a placement, entitlement
issue and convertible note (together, the July Capital Raise)6. The July Capital Raise was cornerstoned by Mercer Street
Global Opportunity Fund II and other funds managed by US-based C/M Capital Partners (Mercer Street). The three
components of the July Capital Raise are summarised below:
•
A placement of ~$0.6M to Mercer Street, directors and management at $0.30 per Share with every 2 Shares
accompanied by 1 Short-Term listed Option and 1 Long-Term listed Option (Attaching Options) (Placement):
•
Short-Term Option (JLLO): exercise price of $0.40 and expiry date of 30 June 2025
•
Long-Term Option (JLLOA): exercise price of $0.60 and expiry date of 30 June 2027
•
Placement Shares were issued to Mercer Street and management on 10 July 2024 following receipt of funds, with
participation in the Placement by Jindalee Directors approved at the Extraordinary General Meeting (EGM) held on
21 August 202412.
•
An entitlement issue to raise up to $3.1M from eligible shareholders on a 1 for 6 basis at $0.30 per Share with
Attaching Options being offered on the same ratio and the same terms issued to Placement participants
(Entitlement Issue). Shareholders were also able to apply for any shortfall of new Shares offered in the Entitlement
Issue. The Entitlement Issue closed on 2 August 2024 with 82.5% of the Shares available under the Entitlement Issue
taken up by Jindalee shareholders, raising ~$2.5M13.
•
An issue of convertible notes, each with a face value of $1.00, to Mercer Street for a total investment of up to $12M
in three or more tranches. Funds for the first tranche comprising an investment of $1.5M were received early July
2024, with the second tranche (also $1.5M) approved at the EGM and received in August, with potential for
additional funding of up to $9.0M by mutual agreement.
Board and Management Changes
In December 2023 Jindalee announced two significant additions to the Board and management team as the Company
transitions from explorer to developer.
On 4 December 2023 Jindalee announced the appointment of Ian Rodger as CEO, commencing January 202414. Mr Rodger is
a qualified Mining Business Executive with 15 years of experience in various roles including as a Mining Engineer for Rio Tinto
across two large greenfield mine developments, before successfully transitioning into mining corporate finance where he
held Executive and Director positions at RFC Ambrian overseeing origination and management of numerous mandates across
a range of corporate advisory roles.
In his most recent role as Project Director for Oz Minerals, Mr Rodger made significant contributions to successfully define
the value potential of the West Musgrave Nickel/Copper Province through the delivery of a portfolio of growth studies. Most
notably, he led technical, market and partnership development workstreams, successfully confirming value potential for
producing an intermediate Nickel product for the battery value chain.
Mr Rodger holds a Bachelor of Mining Engineering from the University of Queensland, a Masters of Mineral Economics from
Curtin University and is also a graduate of the Australian Institute of Company Directors and member of the Australasian
Institute of Mining and Metallurgy.
On 27 December 2023 the Company announced the appointment of Wayne Zekulich as Non-Executive Chair, effective 1
February 2024, replacing Justin Mannolini who has served as a Jindalee director since September 201315. Mr Zekulich is an
accomplished Company Director and finance professional having held various Non-Executive Director and Chief Financial
Officer roles and is currently the Chairman of Pantoro (ASX: PRN). Mr Zekulich holds a Bachelor of Business Degree and is a
Fellow of the Institute of Chartered Accountants.
JINDALEE LITHIUM LIMITED
DIRECTORS’ REPORT
9
Jindalee also advised that Ms Jessamyn Lyons had resigned from the role of Joint Company Secretary during the period, with
Ms Carly Terzanidis remaining in the role of Company Secretary16.
Securities
In addition to the securities noted in the Funding section above, a total of 4.9 million unquoted options were issued during
the period to management pursuant to the Company’s Employee Securities Incentive Plan, with various exercise prices,
vesting dates and expiry dates. A further 500,000 unquoted options were issued to the lead manager of the October Capital
Raise exercisable at $2.10 expiring 20 October 2026.
A total of 1 million unquoted options expired on 22 March 2024.
Other
At the 2023 AGM shareholders approved changing the Company’s name from Jindalee Resources Limited to Jindalee Lithium
Limited to reflect the focus on lithium exploration, with the Company’s ASX ticker changing to “JLL”. These changes became
effective late November 2023.
Changes to the Company’s constitution were approved by shareholders at the AGM. The Company’s current constitution is
available via Jindalee’s Investor Hub - https://investorhub.jindaleelithium.com/corporate-governance.
The Company’s share registry was changed from Advanced Share Registry Limited to Automic Group (Automic) during the
period. Shareholders can manage their holdings via Automic’s secure online investor portal by visiting
https://investor.automic.com.au.
In addition to its US lithium projects, Jindalee provides shareholders with indirect exposure to hard rock lithium, gold, base
and strategic metals, iron ore and magnesite in Australia through the Company’s holding in Dynamic Metals Ltd (ASX: DYM
or Dynamic). Further details on Dynamic’s activities can be found on Dynamic’s website: https://dynamicmetals.com.au.
In April 2024 Jindalee launched its interactive Investor Hub17. The Investor Hub is a dedicated platform for investors and
stakeholders to directly engage with and learn more about Jindalee. Jindalee will be regularly uploading new content to the
hub, including videos accompanying select announcements, education material, interviews and corporate research. Jindalee
encourages investors to post questions and feedback through the Q&A portal, which will be monitored and responded to in
a timely manner. Visit the Investor Hub here: https://investorhub.jindaleelithium.com/welcome.
In May 2024 Jindalee announced that following an internal restructure of BDO Audit (WA) Pty Ltd (BDO WA), BDO WA had
resigned as auditor to the Company and BDO Audit Pty Ltd had been appointed as auditor in accordance with s329(5) of the
Corporation Act 2001 and ASX Listing Rule 3.16.318.
References
Additional details including JORC 2012 reporting tables, where applicable, can be found in the ASX announcements
referenced in this report and the below announcements lodged with the ASX during the period:
1.
Jindalee Lithium ASX announcement 27/02/2023: “Resource at McDermitt increases to 21.5 Mt LCE”
2.
Jindalee Lithium ASX announcement 15/11/2023: “Exceptional Metallurgical Results from McDermitt”
3.
Jindalee Lithium ASX announcement 18/01/2024: “More Exceptional Metallurgical Results from McDermitt”
4.
Jindalee Lithium ASX announcement 31/07/2024: “Battery-Grade Lithium Carbonate Produced from McDermitt”
5.
Jindalee Lithium ASX announcement 31/07/2024: “Quarterly Activities Report - June 2024”
6.
Jindalee Lithium ASX announcement 04/07/2024: “JLL Secures Funding to Advance McDermitt Lithium Project”
7.
Jindalee Lithium ASX announcement 13/02/2023: “MOU Executed with POSCO Holdings”
8.
Jindalee Lithium ASX announcement 16/05/2023: “McDermitt Progress Update”
9.
Jindalee Lithium ASX announcement 30/04/2024: “Jindalee Advances US Government Funding for McDermitt”
10. Jindalee Lithium ASX announcement 16/09/2024: “JLL Secures Strategic Agreement with US Department of Energy”
11. Jindalee Lithium ASX announcement 31/10/2023: “Quarterly Activities Report – September 2023”
JINDALEE LITHIUM LIMITED
DIRECTORS’ REPORT
10
12. Jindalee Lithium ASX announcement 21/08/2024: “Results of Meeting”
13. Jindalee Lithium ASX announcement 09/08/2024: “Results of Entitlement Issue”
14. Jindalee Lithium ASX announcement 04/12/2023: “Appointment of Ian Rodger as CEO”
15. Jindalee Lithium ASX announcement 27/12/2023: “Non-Executive Chair Transition”
16. Jindalee Lithium ASX announcement 30/01/2024: “Quarterly Activities Report – December 2023”
17. Jindalee Lithium ASX announcement 12/04/2024: "Launch of Interactive Investor Hub”
18. Jindalee Lithium ASX announcement 02/05/2024: “Details of Auditor Appointment/Resignation”
19. Jindalee Lithium ASX announcement 24/09/2024: “US Government Funding Update”
Material Business Risks
The Company has exposure to a number of material economic, environmental and social sustainability risks, as is typical
for a mineral exploration and development company, including but not limited to those set out below. In accordance with
the Company’s Board Charter and Risk Management Policy, the Board has oversight of risk management with the assistance
of the Risk Management Team.
Tenure and access
The Company’s exploration tenure in the United States is subject to periodic renewal. The renewal of the term of granted
tenure is subject to the discretion of the relevant authority and may be subject to conditions. The imposition of new
conditions or the inability to meet those conditions may adversely affect the Company or its prospects.
The McDermitt Project overlaps certain third party interests that may limit the Company’s ability to conduct exploration
and mining activities. Where the Company's projects overlap private land, exploration activity on the projects may require
authorisation or consent from the owners of or other interest holders in that land.
Exploration
Potential investors should understand that mineral exploration and development are high-risk undertakings. There can be
no assurance that exploration of the Company’s projects, or any other projects that may be acquired in the future, will
result in the discovery of an economic ore deposit. Even if an apparently viable deposit is identified, there is no guarantee
that it can be economically exploited. The success of the Company will also depend upon the Company having access to
sufficient development capital, being able to maintain title to its projects and obtaining all required approvals for its
activities. In the event that exploration programs prove to be unsuccessful this could lead to a diminution in the value of
the tenements, a reduction in the cash reserves of the Company and possible relinquishment of its projects.
Permitting and regulatory
The Company’s exploration and development activities are subject to extensive laws and regulations relating to numerous
matters including resource licence consent, conditions including environmental compliance and rehabilitation, taxation,
employee relations health and worker safety, waste disposal, protection of endangered and protected species and other
matters. The Company requires permits from regulatory authorities to authorise the Company’s operations. These permits
relate to exploration, development, production and rehabilitation activities.
Obtaining necessary permits can be a time consuming process and there is a risk that the Company will not obtain these
permits on acceptable terms, in a timely manner or at all. The costs and delays associated with obtaining necessary permits
and complying with these permits and applicable laws and regulations could materially delay or restrict the Company from
proceeding with the development of a project or the operation or development of a mine. Any failure to comply with
applicable laws and regulations or permits, even if inadvertent, could result in material fines, penalties or other liabilities.
In extreme cases, failure could result in suspension of the Company’s activities or forfeiture of one or more of the
Company’s tenements.
Climate change
The operations and activities of the Company are subject to changes to local or international compliance regulations related
to climate change mitigation efforts. While the Company will endeavour to manage these risks and limit any consequential
impacts, there can be no guarantee that the Company will not be impacted by these occurrences. Climate change may also
cause certain physical and environmental risks that cannot be predicted by the Company, including events such as increased
severity of weather patterns, incidence of extreme weather events and longer-term physical risks such as shifting climate
JINDALEE LITHIUM LIMITED
DIRECTORS’ REPORT
11
patterns. All these risks associated with climate change may significantly change the industry in which the Company
operates.
Reliance on key personnel
The Company’s future depends, in part, on its ability to attract and retain key personnel. It may not be able to hire and
retain such personnel at compensation levels consistent with its existing compensation and salary structure. Its future also
depends on the continued contributions of its key management and technical personnel, the loss of whose services would
be difficult to replace. In addition, the inability to continue to attract appropriately qualified personnel could have a material
adverse effect on the Company’s business.
Economic
General economic conditions, introduction of tax reform, new legislation, movements in interest and inflation rates and
currency exchange rates may have an adverse effect on the Company, as well as on its ability to fund its operations.
Additional requirements for capital
The operations of the Company are currently dependent on its ability to obtain financing through debt and equity to meet
its business objectives. There is a risk that the Company may not be able to access capital from debt or equity markets for
future operations, projects or developments. This could have a material adverse impact on the Company's business and
financial condition.
Contract and contractor
The Company has outsourced certain activities to third party contractors. Such contractors may not be available to perform
services for the Company when required or may only be willing to do so on terms that are not acceptable to the Company.
Contractor performance may be hampered by capacity constraints and may not comply with applicable provisions,
standards or laws in respect of quality, safety, environmental compliance and timeliness, which may be difficult to control.
In the event that a contractor underperforms or its services are terminated, the Company may not be able to find a suitable
replacement on satisfactory terms within the required timeframe or at all. These circumstances could have a material
adverse effect on the Company’s operations.
Exchange rates
Due to its operations in the United States, the Company is exposed to the fluctuations and volatility of the rate of exchange
between the United States dollar and the Australian dollar as determined in international markets. Movements in interest
rates may result from changes in economic conditions, monetary and fiscal policies, international and regional political
events or other factors beyond the control of the Company, which may adversely affect the financial condition of the
Company.
Cost inflation
Higher than expected inflation rates generally, specific to the mining industry, or specific to the United States or Australia,
could be expected to increase operating and capital expenditure costs and potentially reduce the value of future project
developments.
Sovereign risks
The Company's exploration and development activities are carried out in the United States. As a result, the Company will
be subject to political, social, economic and other uncertainties including, but not limited to, changes in policies or the
personnel administering them, foreign exchange restrictions, changes of law affecting foreign ownership, currency
fluctuations, local beneficiation requirements, local content laws, expropriation risk, royalties and tax increases in that
country. Other potential issues contributing to uncertainty such as repatriation of income, exploration licensing,
environmental protection and Government control over mineral properties, changes to political, legal, regulatory, fiscal
and exchange control systems and changes in Government may also impact the Company’s projects or operations.
Financial
The net assets of the Group have increased by $944,363 from $17,818,044 at 30 June 2023 to $18,762,407 at 30 June 2024.
The Directors believe the Group is in a sound financial position to continue its exploration endeavours.
JINDALEE LITHIUM LIMITED
DIRECTORS’ REPORT
12
Competent Persons Statement
The information in this report that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information
compiled by Mr Lindsay Dudfield and Mr Brett Marsh. Mr Dudfield is a director and shareholder of, and consultant to, the
Company and a Member of the Australasian Institute of Mining and Metallurgy (“AusIMM”) and the Australian Institute of
Geoscientists. Mr Marsh is an employee of the Company and an American Institute of Professional Geologists (“AIPG”)
Certified Professional Geologist and a Registered Member of the Society for Mining, Metallurgy & Exploration (“SME”). Both
Mr Dudfield and Mr Marsh have sufficient experience relevant to the styles of mineralisation and types of deposits under
consideration, and to the activity being undertaken, to qualify as Competent Persons as defined in the 2012 Edition of the
‘Australasian Code for Reporting of Exploration Results, Minerals Resources and Ore Reserves’ (“JORC Code”). Mr Dudfield
and Mr Marsh consent to the inclusion in this report of the matters based on this information in the form and context in
which it appears.
The information in this report that relates to the Mineral Resource Estimates for the McDermitt deposit is based on
information compiled by Mr Arnold van der Heyden, who is a Member and Chartered Professional (Geology) of the AusIMM
and a Director of H&S Consultants Pty Ltd. Mr van der Heyden has sufficient experience relevant to the style of
mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent
Person as defined in the 2012 Edition of the JORC Code. Mr van der Heyden consents to the inclusion in this report of the
matters based on this information in the form and context in which it appears.
The Company confirms that it is not aware of any further new information or data that materially affects the information
included in the original market announcements by Jindalee Lithium Ltd (JLL) referenced in this report and in the case of
estimates of Mineral Resources, that all material assumptions and technical parameters underpinning the estimates in the
relevant market announcements continue to apply and have not materially changed. To the extent disclosed above, the
Company confirms that the form and context in which the Competent Person’s findings are presented have not been
materially modified from the original market announcements.
Forward-Looking Statements
This document may include forward-looking statements. Forward-looking statements include but are not limited to
statements concerning Jindalee Lithium Limited’s (Jindalee) planned exploration program and other statements that are
not historical facts. When used in this document, the words such as “could”, “plan”, “estimate”, “expect”, “intend”, “may”,
“potential”, “should”, and similar expressions are forward-looking statements. Although Jindalee believes that its
expectations reflected in these forward-looking statements are reasonable, such statements involve risks and uncertainties
and no assurance can be given that actual results will be consistent with these forward-looking statements.
Events since the end of the financial year
On 4 July 2024 Jindalee announced a capital raising via the following components (“Capital Raising”):
Share Placement
The Company raised circa $0.6 million via a placement to institutional investors, directors and management at an issue
price of $0.30 per ordinary full paid share (“Share”), with every two Shares providing applicants one free attaching quoted
option exercisable at $0.40 expiring on 30 June 2025 (“Short Term Option”) and one free attaching quoted option
exercisable at $0.60 expiring on 30 June 2027 (“Long Term Option”) (together “Attaching Options”) (“Placement”). The
Placement included a $0.5 million commitment from Mercer Street Global Opportunity Fund II, LP and other funds
managed by United States-based C/M Capital Partners, LP (“Mercer Street”). Investor and management Placement Shares
were issued on 10 July 2024, with Director Placement Shares and Placement Attaching Options approved by shareholders
at the Company’s general meeting held on 21 August 2024 (“General Meeting”) and issued on 30 August 2024.
Entitlement Issue
The Company raised circa $2.5 million via a non-renounceable entitlement issue on a 1 for 6 basis on the same terms as
the Placement, including the issue of Attaching Options (“Entitlement Issue”). Jindalee Directors participated in the
Entitlement Issue. Entitlement Issue Shares and Attaching Options were issued on 9 August 2024.
JINDALEE LITHIUM LIMITED
DIRECTORS’ REPORT
13
Convertible Notes Facility
A convertible note funding facility agreement was entered into with Mercer Street for a facility of up to $12 million
(“Convertible Notes”). An initial tranche of $3.0 million was settled in two phases, with the first Convertible Notes up to
$1.5 million and commencement shares issued on 12 July 2024, and the second Convertible Notes up to $1.5 million, and
unquoted subscription options (exercisable at $0.37 expiring two years from the date of issue) issued following the
Company’s General Meeting. The agreement allows for the potential to raise up to a further $9.0 million in Convertible
Notes.
Funds raised via the Capital Raising are being directed to deliver value optimisation opportunities in the McDermitt Pre-
Feasibility Study (“PFS”), which are expected to improve capital intensity and operating costs (versus initial PFS scope) and
provide runway to achieve several key value catalysts in H2 2024, including the optimised PFS and potential for non-dilutive
US government grant funding.
All resolutions put to shareholders at the General Meeting were carried, with Resolution 10 withdrawn prior to the meeting
(refer to ASX announcement dated 9 August 2024).
Apart from the above, there has not arisen in the interval between the end of the financial year and the date of this report
any item, transaction or event of a material and unusual nature likely, in the opinion of the Directors, to affect significantly
the operations, the results of those operations, or the state of affairs of the Group in future financial years.
Likely developments and expected results of operations
The Directors are not aware of any developments that might have a significant effect on the operations of the Group in
subsequent financial years not already disclosed in this report.
Environmental regulation
The Group’s claims in the United States of America are all located on Federally owned land managed by the Bureau of Land
Management. There are a range of requirements that must be met when undertaking exploration activities, including
seeking approval depending on the nature of the activities and undertaking rehabilitation once activities are complete.
Bonds are payable prior to the commencement of exploration activities and are returned on satisfactory completion of
rehabilitation. The Group conducts its exploration activities in an environmentally sensitive manner and the Group is not
aware of any breach of statutory conditions or obligations.
Greenhouse gas and energy data reporting requirements
The Directors have considered compliance with both the Energy Efficiency Opportunity Act 2006 and the National
Greenhouse and Energy Reporting Act 2007 which requires entities to report annual greenhouse gas emissions and energy
use. The Directors have assessed that there are no current reporting requirements for the year ended 30 June 2024,
however reporting requirements may change in the future.
Information on Directors
Wayne Zekulich BBus, FCA. Non-Executive Chair
Appointed as Director 01/02/2024
Experience and
expertise
Mr Zekulich is an accomplished Company Director and finance professional having held
various Non-Executive Director and Chief Financial Officer roles. Mr Zekulich is currently the
Chairman of Pantoro (ASX: PRN) and a Board member of Western Australian Treasury
Corporation. Mr Zekulich holds a Bachelor of Business Degree and is a Fellow of the Institute
of Chartered Accountants.
Other current
directorships
Pantoro (ASX: PRN) – Chair
Former directorships in
last 3 years
Openn Negotiation Ltd (ASX:OPN) – resignation effective November 2023
Special responsibilities
Chair
Interests in securities
Ordinary Shares – Jindalee Lithium Limited
Listed $0.40 Options expiring 30/06/2025
Listed $0.60 Options expiring 30/06/2027
77,777
38,889
38,889
JINDALEE LITHIUM LIMITED
DIRECTORS’ REPORT
14
J Mannolini B.Com/LLB (Hons), LLM (Cantab), GAICD, SF FIN. Non-Executive Chair
Resigned as Director 01/02/2024
Experience and
expertise
Mr Mannolini was appointed to the Company’s Board as a Non-Executive Director in
September 2013 and as Chair in July 2016. Mr Mannolini resigned from his position with the
Company on 1 February 2024.
Other current
directorships
Dynamic Metals Limited (ASX: DYM) – Non-Executive Chair
Former directorships in
last 3 years
N/A
Special responsibilities
Chair (up to resignation date)
Interests in securities
Ordinary Shares – Jindalee Lithium Limited (at resignation date)
765,000
P Brown M.Eng (MI) Non-Executive Director
Experience and
expertise
Mr Brown brings over two decades of extensive experience in the mining industry,
showcasing a robust background in technical leadership, operational management, and
capital and equity markets. Most recently, he served as Chief Executive – Lithium and Chief
Executive – Commodities at Mineral Resources (ASX: MIN), where he played a pivotal role in
advancing the company's strategic objectives. Prior to this, Mr Brown held senior operating
roles at prominent organisations such as Leighton, HWE, and GMG, consistently
demonstrating expertise in project and studies management, mine planning, and operational
oversight. His experience in capital and equity markets further enhances his ability to drive
growth and innovation within the industry. Currently, Mr Brown leads Core Lithium (ASX:
CXO) as Chief Executive Officer, steering the company toward success in the lithium sector.
He holds a Masters degree in Mine Engineering, further underpinning his technical acumen
and commitment to excellence in the mining field.
Other current
directorships
N/A
Former directorships in
last 3 years
Resource Development Group Limited (ASX: RDG) – resignation effective October 2022
Future Battery Minerals Ltd (ASX: FBM) – resignation effective October 2023
Special responsibilities
None
Interests in securities
Ordinary Shares – Jindalee Lithium Limited
Unquoted $3.63 Options expiring 22/03/2026
Listed $0.40 Options expiring 30/06/2025
Listed $0.60 Options expiring 30/06/2027
106,667
500,000
33,334
33,334
L Dudfield B.Sc. Executive Director
Experience and
expertise
Mr Dudfield is a qualified geologist with over 40 years’ experience in multi-commodity
exploration, primarily within Australia. He held senior positions with the mineral division of
Amoco (1977-1979) and Exxon (1980-1987). In 1987 he became a founding director of
Dalrymple Resources NL and spent the following eight years helping acquire and explore
Dalrymple’s properties, leading to a number of greenfields discoveries. In late 1994 Mr
Dudfield joined the board of Horizon Mining NL (Jindalee’s predecessor and has been
responsible for managing the Company since inception. Mr Dudfield is a member of the
Australasian Institute of Mining and Metallurgy (“AusIMM”), the Society of Economic
Geologists (“SEG”), the Australian Institute of Geoscientists (“AIG”) and the Geological
Society of Australia (“GSA”).
Other current
directorships
Energy Metals Limited (ASX: EME) – Non-Executive Director
Alchemy Resources Limited (ASX: ALY) – Non-Executive Chair
Dynamic Metals Limited (ASX: DYM) – Non-Executive Director
Former directorships in
last 3 years
None
Special responsibilities
None
Interests in securities
Ordinary Shares – Jindalee Lithium Limited *
Listed $0.40 Options expiring 30/06/2025
Listed $0.60 Options expiring 30/06/2027
17,389,932
1,242,130
1,242,130
JINDALEE LITHIUM LIMITED
DIRECTORS’ REPORT
15
L Dudfield B.Sc. Executive Director
*In addition to the above shares, it is noted that 731,933 shares are held
by Jopan Management Pty Ltd, a company owned by Mr Dudfield’s
spouse, over which Mr Dudfield neither controls nor exerts any significant
influence on, and 68,250 shares are held by Mr Dudfield’s spouse.
D Wates LLB, BCom, Grad Dip App Fin Non-Executive Director
Appointed 04/08/2022
Experience and
expertise
Mr Wates is a corporate lawyer with over 24 years’ experience in equity capital markets,
mergers and acquisitions, resources, project acquisitions/divestments and corporate
governance gained through private practice and in-house roles in Western Australia. Mr
Wates is the founder and Principal of Corpex Legal, a Perth based legal practice providing
corporate, commercial and resources related legal and consulting services, primarily to small
and mid-cap ASX listed companies. Mr Wates holds Bachelor degrees in Law and Commerce
and a Graduate Diploma in Applied Finance and Investment.
Other current
directorships
None
Former directorships in
last 3 years
None
Special responsibilities
None
Interests in securities
Ordinary Shares – Jindalee Lithium Limited
Unquoted $3.32 Options expiring 30/11/2025
Listed $0.40 Options expiring 30/06/2025
Listed $0.60 Options expiring 30/06/2027
113,333
500,000
36,667
36,667
Company Secretary Information
Ms Terzanidis is a Chartered Secretary, an Associate of the Governance Institute of Australia and holds a Bachelor of
Commerce from Curtin University with majors in Accounting and Corporate & Resources Administration. Ms Terzanidis is
Company of a number of ASX listed resources and services companies.
Meetings of Directors
The following table sets out the number of meetings of the Company’s Directors held during the year ended 30 June 2024
the numbers of meetings attended by each Director.
Name
Board of Directors
Meetings held during the time the
Director held office
Meetings attended
J Mannolini
4
4
L Dudfield
7
7
D Wates
7
7
P Brown
7
7
W Zekulich
3
3
As at the date of this report, the Group did not have an Audit Committee of the Board of Directors. The Board considers
that due to the Group’s size, an Audit Committee’s functions and responsibilities can be adequately and efficiently
discharged by the Board as a whole, operating in accordance with the Group’s mechanisms designed to ensure independent
judgement in decision making.
Retirement, election and continuation in office of directors
Mr Darren Wates and Mr Wayne Zekulich are the Directors seeking election at the Company’s 2024 Annual General
Meeting.
JINDALEE LITHIUM LIMITED
DIRECTORS’ REPORT
16
AUDITED REMUNERATION REPORT
The Directors are pleased to present Jindalee Lithium Limited 2024 remuneration report which sets out remuneration
information for the Company’s non-executive directors, executive directors and other key management personnel.
The report contains the following sections:
(a)
Key management personnel disclosed in this report
(b)
Remuneration governance and the use of remuneration consultants
(c)
Executive remuneration policy and framework
(d)
Relationship between remuneration and the Group’s performance
(e)
Non-executive director remuneration policy
(f)
Voting and comments made at the Company’s 2023 Annual General Meeting
(g)
Details of remuneration
(h)
Service agreements
(i)
Details of share-based compensation and bonuses
(j)
Equity instruments held by key management personnel
(k)
Loans to key management personnel
(l)
Other transactions with key management personnel
(a)
Key management personnel disclosed in this report
W Zekulich
Non-Executive Chair (appointed 1 February 2024)
J Mannolini
Non-Executive Chair (resigned 1 February 2024)
L Dudfield
Executive Director
D Wates
Non-Executive Director
P Brown
Non-executive Director
I Rodger
Chief Executive Officer (appointed 22 January 2024)
For further details on each Director see pages 9-11.
(b)
Remuneration governance and use of remuneration consultants
The Company has a Remuneration Policy however has not established a separate Remuneration Committee. Due to the
early stage of development and small size of the Company a separate Remuneration Committee was not considered to add
any efficiency to the process of determining the levels of remuneration for directors and key executives. The Board
considers that it is more appropriate to set aside time at a Board meeting each year to specifically address matters that
would ordinarily fall to a Remuneration Committee such as reviewing remuneration, recruitment, retention and
termination procedures and evaluating senior executive remuneration packages and incentives. A copy of the
Remuneration Policy can be found on the Company’s website www.jindaleelithium.com.
In addition, all matters of remuneration will continue to be in accordance with the Corporations Act 2001 requirement,
especially with regard to related party transactions. That is, none of the Directors participate in any deliberations regarding
their own remuneration or related issues.
Independent external advice is sought from remuneration consultants when required, however no advice has been sought
during the year ended 30 June 2024.
The Corporate Governance Statement provides further information on the Company’s remuneration governance. Further
details on the Corporate Governance Statement can be found on the Company’s website www.jindaleelithium.com.
JINDALEE LITHIUM LIMITED
DIRECTORS’ REPORT
17
(c)
Executive remuneration policy and framework
In determining executive remuneration, the Board aims to ensure that remuneration practices are:
•
Competitive and reasonable, enabling the Company to attract and retain key talent,
•
Aligned to the Company’s strategic and business objectives and the creation of shareholder value,
•
Transparent and easily understood, and
•
Acceptable to shareholders
All executives receive consulting fees or a salary, part of which may be taken as superannuation, and from time to time,
options. Options issued to Directors are subject to approval by Shareholders. The Board reviews executive packages
annually by reference to the executive’s performance and comparable information from industry sectors and other listed
companies in similar industries.
Board members are allocated superannuation guarantee contributions as required by law, and do not receive any other
retirement benefits. From time to time, some individuals may choose to sacrifice their salary or consulting fees to increase
payments towards superannuation.
All remuneration paid to directors and specified executives is valued at the cost to the Group and expensed. Options are
valued using the Black-Scholes methodology.
(d)
Relationship between remuneration and the Group’s performance
The policy setting the terms and conditions for the executive directors was developed and approved by the Board and is
considered appropriate for the current exploration phase of the Group’s development. Emoluments of Directors are set by
reference to payments made by other companies of similar size and industry, and by reference to the skills and experience
of directors. Fees paid to Directors are not linked to the performance of the Group. This policy may change once the
exploration phase is complete and the Company is generating revenue. At present the existing remuneration policy is not
impacted by the Group’s performance including earnings and changes in shareholder wealth (dividends, changes in share
price or returns of capital to shareholders). The Board has not set short term performance indicators, such as movements
in the Company’s share price, for the determination of director emoluments as the Board believes this may encourage
performance which is not in the long-term interests of the Company and its shareholders. The Board has structured its
remuneration arrangements in such a way it believes is in the best interests of building shareholder wealth in the longer
term. The Board believes participation in the Company’s Employee Securities Incentive Plan motivates key management
and executives with the long-term interests of shareholders.
The following table shows the share price and the market capitalisation of the Group at the end of each of the last five
financial years.
2020
2021
2022
2023
2024
Share Price
$0.32
$2.50
$2.99
$1.75
$0.30
Market Capitalisation
$12.4M
$133.5M
$171.6M
$100.1M
$18.3M
Dividends (cents per
share)
-
-
-
-
-
(e)
Non-executive director remuneration policy
On appointment to the Board, all non-executive directors enter into a service agreement with the Company in the form of
a letter of appointment. The letter summarises the Board policies and terms including remuneration, relevant to the office
of director.
The Board policy is to remunerate non-executive directors at commercial market rates for comparable companies for their
time, commitment and responsibilities.
JINDALEE LITHIUM LIMITED
DIRECTORS’ REPORT
18
The maximum aggregate amount of fees that can be paid to non-executive directors is subject to approval by shareholders
at the Annual General Meeting and is currently set at $350,000 per annum.
Fees for non-executive directors are not linked to the performance of the Group. Non-executive directors’ remuneration
may also include an incentive portion consisting of options, subject to approval by Shareholders.
(f)
Voting and comments made at the Company’s 2023 Annual General Meeting
Jindalee received 98.01% of “yes” votes on its remuneration report for the 2023 financial year. The Company did not receive
any specific feedback at the AGM or throughout the year on its remuneration practices.
(g)
Details of remuneration
The following table sets out details of the remuneration received by the Group’s key management personnel for the current
and previous financial year measured in accordance with the requirements of the accounting standards.
Short-term benefits
Post- employment benefits
Share-
based
payment
Total
Director
Fees
Cash
Salary,
Consulting
Fees
Super-
annuation
Annual and
Long Service
Leave
Options
$
$
$
$
$
$
Non-Executive Director/Chair
W Zekulich1
2024
33,333
-
3,767
-
-
37,100
J Mannolini2
2024
29,167
-
3,208
-
-
32,375
2023
50,000
-
5,250
-
-
55,250
Non-Executive Directors
D Wates
2024
50,000
-
5,563
-
-
55,563
2023
45,467
-
4,774
-
534,500
584,741
P Brown
2024
50,000
-
5,563
-
378,294
433,857
2023
30,027
-
3,153
-
245,706
278,886
Executive Directors
L Dudfield
2024
-
206,000
-
-
-
206,000
2023
-
203,125
-
-
-
203,125
P Farr3
2024
-
-
-
-
-
-
2023
-
11,848
-
-
-
11,848
Chief Executive Officer
I Rodger5
2024
-
159,234
17,550
-
593,732
770,516
K Wellman4
2024
-
-
-
-
-
-
2023
-
129,231
13,569
-
-
142,800
Total
2024
162,500
365,234
35,651
-
972,026
1,535,411
2023
125,494
344,204
26,746
-
780,206
1,276,650
1Appointed 1 February 2024.
2Resigned 1 February 2024
3Resigned as Executive Director on 4 August 2022
4Appointed 22 January 2024
5Resigned on 10 January 2023
JINDALEE LITHIUM LIMITED
DIRECTORS’ REPORT
19
(h)
Service Agreements
Remuneration and other terms of employment for key management personnel are formalised in service agreements. The
service agreements specify the components of remuneration, benefits and notice periods.
W Zekulich
Mr Zekulich was appointed a Non-Executive Director and Chair on 1 February 2024. Mr Zekulich is entitled to director fees
of $80,000 per annum plus statutory superannuation in accordance with his letter of appointment. Mr Zekulich’s
appointment is contingent upon satisfactory performance and successful re-election by shareholders of the Company as
and when required by the Constitution of the Company and the Corporations Act 2001. Mr Zekulich is not entitled to any
termination benefits.
J Mannolini
Mr Mannolini was appointed a Non-Executive Director on 30 September 2013, appointed Chairman on 1 July 2016 and
resigned 1 February 2024. Mr Mannolini was entitled to director fees of $50,000 per annum plus statutory superannuation
in accordance with his letter of appointment.
D Wates
Mr Wates was appointed as a non-executive director on 4 August 2022. Mr Wates is entitled to director fees of $50,000
per annum plus statutory superannuation in accordance with his letter of appointment. Mr Wates’ appointment is
contingent upon satisfactory performance and successful re-election by shareholders of the Company as and when required
by the Constitution of the Company and the Corporations Act 2001. Mr Wates is not entitled to any termination benefits.
P Brown
Mr Brown was appointed as a non-executive director on 1 December 2022. Mr Brown is entitled to director fees of $50,000
per annum plus statutory superannuation in accordance with his letter of appointment. Mr Brown’s appointment is
contingent upon satisfactory performance and successful re-election by shareholders of the Company as and when required
by the Constitution of the Company and the Corporations Act 2001. Mr Brown is not entitled to any termination benefits.
L Dudfield
Mr Dudfield was appointed a director on 22 January 1996. On 11 January 2023, Mr Dudfield was appointed as Chief
Executive Officer (“CEO”) of Jindalee Lithium Limited; he resigned from this CEO position on 22 January 2024. Mr Dudfield
is remunerated pursuant to the terms and conditions of a consultancy agreement entered into with Mr Dudfield and Jopan
Management Pty Ltd trading as Western Geological Services. The agreement may be terminated by either party on the
giving on 90 days’ notice or earlier in the event of a default not remedied within 14 days. Mr Dudfield is not entitled to any
termination benefits.
P Farr
Ms Farr was appointed as a director on 29 August 2008 and resigned on 4 August 2022. Ms Farr was remunerated pursuant
to the terms and conditions of a consultancy agreement.
I. Rodger
Mr Rodger was appointed CEO effective 22 January 2024. Mr Rodger is paid an annual salary of $360,000 plus statutory
superannuation pursuant to an Executive Services Agreement. Mr Rodger’s employment contract may be terminated by
either party on the giving of three months’ notice. Upon termination of the contract, for any reason, the Company will pay
leave entitlements due to Mr Rodger.
K Wellman
Ms Wellman was appointed CEO effective 12 October 2020 and resigned on 10 January 2023. Ms Wellman was paid an
annual salary of $240,000 per annum plus statutory superannuation pursuant to an Executive Services Agreement.
(i)
Details of share-based compensation and bonuses
Options over shares in Jindalee Lithium Limited are granted under the Company’s Employee Securities Incentive Plan.
Participation in the plan and any vesting criteria, is at the Board’s discretion and no individual has a contractual right to
JINDALEE LITHIUM LIMITED
DIRECTORS’ REPORT
20
participate in the plan or to receive any guaranteed benefits. Any options issued to directors of the Company are subject
to shareholder approval.
Options
The terms and conditions of each grant of options over ordinary shares affecting remuneration of directors and other key
management personnel in this financial year or future reporting years are as follows:
Name
Number of options
granted
Grant date
Vesting date
and
exercisable
date
Expiry date
Exercise
price
Fair value
per option
at grant
date
D Wates
500,000
30/11/2022
30/11/2022
30/11/2025
3.32
1.069
P Brown
500,000
22/03/2023
1/12/2023
22/03/2026
3.63
1.248
I Rodger
1,500,000
1/12/2023
22/07/2024
27/02/2027
1.50
0.308
I Rodger
1,500,000
1/12/2023
21/01/2025
27/02/2027
2.50
0.190
I Rodger
1,500,000
1/12/2023
21/01/2026
27/02/2028
3.50
0.196
Options granted carry no dividend or voting rights.
All options were granted over unissued fully paid ordinary shares in the Company. Options vest based on the provision of
service over the vesting period whereby the executive becomes beneficially entitled to the option on vesting date. Options
are exercisable by the holder as from the vesting date. There has not been any alteration to the terms or conditions of the
grant since the grant date. There are no amounts paid or payable by the recipient in relation to the granting of such options
other than on their potential exercise.
The fair value of services received in return for share options granted to employees is measured by reference to the fair
value of options granted. The estimate of the fair value of the services is measured based on Black-Scholes option valuation
methodology. The life of the options and early exercise option are built into the option model.
No bonuses were paid during the year and there is currently no bonus scheme in place.
Further information on the fair value of share options and assumptions is set out below.
1
2
3
4
5
Grant Date
30/11/2022
22/03/2023
01/12/2023
01/12/2023
01/12/2023
Exercise Price
$3.32
$3.63
$1.50
$2.50
$3.50
Expected Life
3 years
3.02 years
3 years
3 years
4 years
Share Price at Time
of Grant
$2.21
$2.5
$0.937
$0.937
$0.937
Expected Volatility
87.8%
90%
65%
65%
65%
Dividend Yield
0%
0%
0%
0%
0%
Risk Free Interest
Rate
3.17%
3.02%
4.07%
4.07%
4.07%
Option Value
$1.069
$1.248
$0.308
$0.190
$0.196
Vesting Conditions
N/A
12 months
service
1,500,000
options 6
months
service
1,500,000
options 12
months
service
1,500,000
options 24
months
service
JINDALEE LITHIUM LIMITED
DIRECTORS’ REPORT
21
(j)
Equity instruments held by key management personnel
The following tables detail the number of fully paid ordinary shares and options over ordinary shares in the Company that were held during the financial year and the
previous financial year by key management personnel and their associated related parties.
2024
Balance at the start
of the year
Options/ Shares
granted as
compensation
Other changes
during the year
Balance at the end of
the year
Vested and
exercisable
Unvested
Name
W. Zekulich
Ordinary fully paid shares
-
-
-
-
-
-
Unlisted Options
-
-
-
-
-
-
J Mannolini
Ordinary fully paid shares
750,000
-
15,000
765,000*
-
-
Unlisted Options
-
-
-
-
-
-
D Wates
Ordinary fully paid shares
-
-
40,000
40,000
-
-
Unlisted Options
500,000
-
-
500,000
500,000
-
P Brown
Ordinary fully paid shares
-
-
40,000
40,000
-
-
Unlisted Options
500,000
-
-
500,000
500,000
-
L Dudfield
Ordinary fully paid shares
14,745,665
-
160,000
14,905,665
-
-
Unlisted Options
-
-
-
-
-
-
I Rodger
Ordinary fully paid shares
-
-
-
-
-
-
Unlisted Options
-
4,500,000
-
4,500,000
-
4,500,000
*Balance of 765,000 is as at date of resignation of 1 February 2024
JINDALEE LITHIUM LIMITED
DIRECTORS’ REPORT
22
Securities Trading Policy
The Company has implemented a policy on trading in the Company’s securities designed to ensure that all Directors, senior
management and employees of the Company act ethically and do not use confidential inside information for personal gain.
The policy states acceptable and unacceptable times for trading in Company securities and outlines the responsibility of
Directors, senior management and employees to ensure that trading complies with the Corporations Act 2001, the ASX
Listing Rules and Company policy. A copy of this policy was lodged with the ASX and is available on the Company’s website.
Any transaction conducted by Directors with regards to shares of the Company requires notification to the ASX. Each
Director has entered into an agreement to provide any such information with regards to Company dealings directly to the
Company Secretary promptly to allow the Company to notify the ASX within the required reporting timeframes.
For details on the valuation of the options, including models and assumptions used, please refer to section (i) above.
(k)
Loans to key management personnel
There were no loans to individuals or members of key management personnel during the financial year or the previous
financial year.
(l)
Other transactions with key management personnel
During the year the Group paid a total of $85,800 and had a payable at year-end of $162,800 to Western Geological Services
(a division of Jopan Management Pty Ltd), the fees being for the provision of technical and management services provided
to the Group by Mr Lindsay Dudfield. Mr Dudfield’s spouse is the major shareholder of and the sole director and company
secretary of Jopan Management Pty Ltd.
End of Audited Remuneration Report
Shares under option
Unissued ordinary shares of the Company under option at the date of this report are as follows:
Grant Date
Number
Date vested and exercisable
Expiry Date
Exercise Price
27/11/2020
375,000
30/04/2021
30/06/2025
$ 0.40
27/11/2020
1,000,000
30/04/2022
30/06/2025
$ 0.50
20/07/2022
1,000,000
various
28/07/2025
$ 3.78
28/07/2022
500,000
8/2/2023
28/07/2025
$ 3.78
30/11/2022
500,000
30/11/2022
30/11/2025
$ 3.32
17/01/2023
125,000
25/01/2026
25/01/2026
$ 5.00
22/03/2023
500,000
1/12/2023
22/03/2026
$ 3.63
1/7/2023
400,000
various
10/7/2026
$ 3.50
13/10/2023
500,000
13/10/2023
20/10/2026
$ 2.10
1/12/2023
1,500,000
27/08/2024
27/02/2027
$ 1.50
1/12/2023
1,500,000
27/02/2025
27/02/2027
$ 2.50
1/12/2023
1,500,000
27/02/2026
27/02/2028
$ 3.50
No option holder has any right under the options to participate in any other share issue of the Company or any other entity.
Shares Issued on Exercise of Options
There were no shares (2023:Nil) issued on exercise of options during the year and up to the date of this report.
JINDALEE LITHIUM LIMITED
DIRECTORS’ REPORT
23
Directors and Officers insurance
Jindalee Lithium Limited paid a premium during the year in respect of a directors’ and officers’ liability insurance policy,
insuring the Directors and officers of the company against a liability incurred whilst acting in the capacity of a director,
secretary or executive officer to the extent permitted by the Corporations Act 2001. The Directors have not included details
of the nature of the liabilities covered or the amount of the premium paid in respect of the policy as such disclosure is
prohibited under the terms of the contract of insurance.
Corporate Governance Statement
The Company’s 2024 Corporate Governance Statement has been released as a separate document and is located on the
Company’s website at: https://investorhub.jindaleelithium.com/corporate-governance.
Proceedings on behalf of the Company
No person has applied to the Court under section 237 of the Corporations Act 2001 for leave to bring proceedings on behalf
of the Company, or to intervene in any proceedings to which the Company is a party, for the purpose of taking responsibility
on behalf of the Company for all or part of those proceedings.
No proceedings have been brought or intervened in on behalf of the Company with leave of the Court under section 237
of the Corporations Act 2001.
Non-audit services
The Company from time to time may decide to employ the auditor on assignments additional to their statutory audit duties
where the auditor’s expertise and experience with the Company is important.
The Board of Directors has considered the position and is satisfied that the provision of the non-audit services is compatible
with the general standard of independence for auditors imposed by the Corporations Act 2001.
Auditor’s Independence Declaration
A copy of the auditor’s independence declaration as required by section 307C of the Corporations Act 2001 is included on
page 57.
This report is signed in accordance with a resolution of the Directors.
Executive Director
Perth
30 September 2024
JINDALEE LITHIUM LIMITED
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2024
24
2024
2023
Notes
$
$
Finance income
3
19,684
83,806
Other income
3
-
386,209
Share-based payments
17
(1,560,261)
(2,134,223)
Employee benefits expenses
(1,062,583)
(467,759)
Corporate regulatory expenses
(229,618)
(234,675)
Professional fees
(496,737)
(477,476)
Exploration expenditure
(15,767)
(180,539)
Share of profit/(loss) of associate
26(b)
639,168
(179,238)
Investor and promotional activities
(211,785)
(152,897)
Depreciation and amortisation expense
(58,355)
(59,696)
Finance costs
(6,922)
(10,947)
Fair value movement on financial assets
10
(1,150,067)
515,332
Gain/(loss) on foreign exchange
(65,241)
349,430
Other expenses
(489,439)
(770,538)
Loss before income tax
(4,687,923)
(3,333,211)
Income tax expense
4
-
-
Loss after income tax
(4,687,923)
(3,333,211)
Loss attributable to owners of Jindalee Lithium Limited
(4,687,923)
(3,333,211)
Profit after income tax expense from discontinued operations
-
755,934
Loss for the year after tax
(4,687,923)
(2,577,277)
Other comprehensive income
Items that may be reclassified to profit or loss
Foreign currency translation
(8,833)
(9,915)
Other comprehensive income for the year
(8,833)
(9,915)
Total comprehensive loss for the year attributable to the ordinary
equity holders of the Company
(4,696,756)
(2,587,192)
Loss per share attributable to the ordinary equity holders of the
Company – from continuing and discontinued operations
Basic Loss per share (cents per share)
6
(7.88)
(4.49)
Diluted loss per share (cents per share)
6
(7.88)
(4.49)
The above consolidated statement of profit or loss and other comprehensive income should be read in conjunction with the
accompanying notes.
JINDALEE LITHIUM LIMITED
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2024
25
2024
2023
Notes
$
$
Current assets
Cash and cash equivalents
8
298,197
2,241,925
Trade and other receivables
9
142,221
79,188
Total current assets
440,418
2,321,113
Non-current assets
Property, plant and equipment
11
357,894
359,200
Right of use assets
-
54,541
Investment in associate
26(b)
2,959,930
2,320,762
Exploration and evaluation expenditure
12
16,514,741
11,300,580
Financial assets at fair value through profit and loss
10
148,833
2,032,100
Total non-current assets
19,981,398
16,067,183
Total assets
20,421,816
18,388,296
Current liabilities
Trade and other payables
13
1,646,404
511,265
Provision for annual leave
13,005
-
Lease liabilities
-
58,987
Total current liabilities
1,659,409
570,252
Non-current liabilities
Total non-current liabilities
-
-
Total liabilities
1,659,409
570,252
Net assets
18,762,407
17,818,044
Equity
Contributed equity
14
25,058,279
21,326,715
Accumulated losses
15
(11,143,402)
(10,065,688)
Reserves
16
4,847,530
6,557,017
Total equity
18,762,407
17,818,044
The above consolidated statement of financial position should be read in conjunction with the accompanying notes.
JINDALEE LITHIUM LIMITED
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2024
26
2024
2023
Notes
$
$
Cash flows from operating activities
Payments to suppliers and employees
(2,287,504)
(1,287,556)
Interest received
19,684
20,979
Interest paid
(6,922)
(7,311)
Payments for exploration and evaluation
(15,767)
(210,770)
Other Income - income from POSCO
-
210,386
Recharges from discontinued operations
-
372,264
Net cash outflow from operating activities
5
(2,290,509)
(902,008)
Cash flows from investing activities
Payments for exploration and evaluation
(4,323,559)
(4,587,525)
Payments for exploration and evaluation - discontinued operations
-
(429,839)
Payments for property, plant and equipment
(2,732)
(360,439)
Proceeds from sale of tenements
-
25,000
Cash flows from spin-off of subsidiary
-
(268,092)
Proceeds from disposal of investments
733,200
139,405
Net cash outflow from investing activities
(3,593,091)
(5,481,490)
Cash flows from financing activities
Lease principal repayments
(58,986)
(60,924)
Proceeds from issue of shares net of costs
4,055,244
-
Repayment of borrowings to associate
(36,200)
-
Net cash outflow from financing activities
3,960,058
(60,924)
Net decrease in cash and cash equivalents held
(1,923,542)
(6,444,422)
Cash and cash equivalents at the beginning of the financial year
2,241,925
8,690,940
Foreign exchange movement on cash
(20,186)
(4,593)
Cash and cash equivalents at the end of the financial year
8
298,197
2,241,925
The above consolidated statement of cash flows should be read in conjunction with the accompanying notes.
JINDALEE LITHIUM LIMITED
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2024
27
Contributed
equity
Reserve
Accumulated
losses
Total equity
$
$
$
$
Balance at 30 June 2022
21,326,062
4,432,709
(7,488,411)
18,270,360
Total comprehensive loss for the year:
Loss for the year
-
-
(2,577,277)
(2,577,277)
Foreign exchange movement
-
(9,915)
-
(9,915)
Total comprehensive loss for the year
-
(9,915)
(2,577,277)
(2,587,192)
Transactions with owners in their capacity as
owners
Issue of shares net of issue costs
653
-
-
653
Share-based payments
-
2,134,223
-
2,134,223
Balance at 30 June 2023
21,326,715
6,557,017
(10,065,688)
17,818,044
Total comprehensive loss for the year:
Loss for the year
-
-
(4,687,923)
(4,687,923)
Foreign exchange movement
-
(8,833)
-
(8,833)
Total comprehensive loss for the year
-
(8,833)
(4,687,923)
(4,696,756)
Transactions with owners in their capacity as
owners
Issue of shares net of issue costs
4,080,858
-
-
4,080,858
Share-based payments
(349,294)
1,909,555
-
1,560,261
Reclass of expired/lapsed options from reserve
-
(3,610,209)
3,610,209
-
Balance at 30 June 2024
25,058,279
4,847,530
(11,143,402)
18,762,407
The above consolidated statement of changes in equity should be read in conjunction with the accompanying notes.
JINDALEE LITHIUM LIMITED
NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
28
1. CORPORATION INFORMATION
These financial statements of Jindalee Lithium Limited for the year ended 30 June 2024 were authorised for issue in
accordance with a resolution of Directors on 27 September 2024.
The financial statements cover the Group of Jindalee Lithium Limited and its controlled entities. Jindalee Lithium Limited is a
company limited by shares incorporated in Australia whose shares are publicly traded on the Australian Securities Exchange.
Unless otherwise stated, policies adopted in the preparation of the financial statements are consistent with those of the
previous year.
2. SUMMARY OF MATERIAL ACCOUNTING POLICIES
In order to assist in the understanding of the financial statements, the following summary explains the material accounting
policies that have been adopted in the preparation of the accounts.
(a)
Statement of Compliance
These general-purpose financial statements have been prepared in accordance with Australian Accounting Standards, other
authoritative pronouncements of the Australian Accounting Standards Board (“AASB”), Urgent Issues Group Interpretations
and the Corporations Act 2001.
The consolidated financial statements of Jindalee Lithium Limited also comply with International Financial Reporting
Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”).
(b)
New Accounting Standards, interpretations and amendments adopted by the Group
The accounting standards and interpretations relevant to the operations of the Group are consistent with those of the
previous financial year. There are some amendments and interpretations effective for the first time from 1 July 2023, though
they did not have any impact on the current period or any prior period and are not likely to affect future periods.
A number of new standards, amendments to standards and interpretations issued by the AASB which are not yet mandatorily
applicable to the Group have not been applied in preparing these consolidated financial statements and none are expected
to be relevant to the Group. The Group does not plan to adopt these standards early.
(c)
Basis of Preparation/Accounting
The financial statements have been prepared on an accruals basis and are based on historical costs and do not take into
account changing money values or, except where stated, current valuations of non-current assets. Cost is based on the fair
values of the consideration given in exchange for assets.
In applying IFRS, management is required to make judgements, estimates and assumptions that affect the application of
accounting policies and reported amounts of assets and liabilities, income and expenses. The estimates and associated
assumptions are based on historical experience and various other factors that are believed to be reasonable under the
circumstances, the results of which form the basis of making judgements about carrying values of assets and liabilities that
are not readily available from other sources. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are
recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision
and future periods if the revision affects both current and future periods.
JINDALEE LITHIUM LIMITED
NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
29
2. SUMMARY OF MATERIAL ACCOUNTING POLICIES (CONTINUED)
(c)
Basis of Preparation/Accounting (Continued)
Accounting policies are selected and applied in a manner which ensures that the resulting financial information satisfies the
concepts of relevance and reliability, thereby ensuring that the substance of the underlying transactions or other events is
reported. Accounting policies have been consistently applied throughout the year.
The significant accounting policies set out below have been applied in the preparation and presentation of the financial
statements for the year ended 30 June 2024 and the comparative information.
(d)
Going Concern
These consolidated financial statements have been prepared on the going concern basis, which contemplates continuity of
normal business activities and the realisation of assets and the settlement of liabilities in the ordinary course of business.
At 30 June 2024, the Group had a cash position of $298,197 (2023: $2,241,925) and a working capital deficit of $1,218,991
(2023: working capital surplus $1,750,861). For the year ended 30 June 2024, the Group recorded a loss of $4,687,923 (2023:
$2,577,277) and had net cash outflows from operating and investing activities of $5,883,600 (2023: $6,383,498).
The Group’s cash flow forecast to 30 September 2025 indicates that the Group will need to raise additional funds to meet
expenditure commitments, its business plan and its current level of corporate overheads to continue as a going concern. As
a result, there exists a material uncertainty that may cast significant doubt over the entity’s ability to continue as a going
concern.
To address the future funding requirements of the Group, the Directors have:
•
developed a business plan that provides encouragement for investors to invest; and
•
continued their focus on maintaining an appropriate level of corporate overheads in line with the Group’s available
cash resources.
The Directors are confident that the Company will be able to complete a fund raising to meet the Group’s funding
requirements for the forecast period ending 30 September 2025. The Directors therefore believe that it is appropriate to
prepare the 30 June 2024 financial statements on a going concern basis.
In the event that the Company is not able to successfully complete the fund raising referred to above, it may be unable to
realise its assets and discharge its liabilities in the normal course of business. The financial statements do not include
adjustments relating to the recoverability and classification of recorded asset amounts, nor to the amounts and classification
of liabilities that might be necessary should the Company and the Group not continue as a going concern.
(e)
Principles of Consolidation
The consolidated financial statements incorporate the assets and liabilities of the subsidiary of Jindalee Lithium Limited as
at 30 June 2024 and the results of all subsidiaries for the year then ended. Jindalee Lithium Limited and its subsidiaries
together are referred to in the financial statements as the Group.
Subsidiaries are all entities (including special purpose entities) over which the Group has the power to govern the financial
and operating policies, generally accompanying a shareholding of more than one-half of the voting rights. The existence and
effect of potential voting rights that are currently exercisable or convertible are considered when assessing whether the
Group controls another entity.
Subsidiaries are fully consolidated from the date on which control is transferred to the Group. They are de-consolidated from
the date that control ceases.
The acquisition method of accounting is used to account for business combinations by the Group.
JINDALEE LITHIUM LIMITED
NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
30
2. SUMMARY OF MATERIAL ACCOUNTING POLICIES (CONTINUED)
(e)
Principles of Consolidation (Continued)
Intercompany transactions, balances and unrealised gains on transactions between Group companies are eliminated.
Unrealised losses are also eliminated unless the transaction provides evidence of the impairment of the asset transferred.
Accounting policies of subsidiaries are changed where necessary to ensure consistency with the policies adopted by the
Group.
Investments in subsidiaries are accounted for at cost in the Parent Entity information disclosures of Jindalee Lithium Limited.
When the Group ceases to have control, joint control or significant influence, any retained interest in the entity is
remeasured to its fair value with the change in carrying amount recognised in profit or loss. The fair value is the initial carrying
amount for the purposes of subsequently accounting for the retained interest as an associate, jointly controlled entity or
financial asset. In addition, any amounts previously recognised in other comprehensive income in respect of that entity are
accounted for as if the Group had directly disposed of the related assets or liabilities. This may mean that the amounts
previously recognised in other comprehensive income are reclassified to profit or loss.
If the ownership interest in a jointly controlled entity or an associate is reduced but joint control or significant influence is
retained, only a proportionate share of the amounts previously recognised in other comprehensive income are reclassified
to profit or loss where appropriate.
(f)
Cash and Cash Equivalents
For the purposes of the statement of cash flows, cash and cash equivalents includes cash on hand, and term deposits
repayable on demand with a financial institution. The cash and cash equivalents balance primarily consists of funds on term
deposit with original maturity at time of purchase of three months or less that are readily convertible to known amounts of
cash and which are subject to minimal risk of changes in value.
(g)
Trade and Other Receivables
Trade receivables are recognised initially at fair value, less any allowance for expected credit losses. See note 9 for further
information about the Group’s accounting for trade receivables.
(h)
Property, Plant and Equipment
Plant and equipment is stated at cost less accumulated depreciation and any impairment in value.
Depreciation is calculated using the diminishing value and prime cost methods and is brought to account over the estimated
economic lives of all property, plant and equipment. The rates used are based on the useful life of the assets and range from
10% to 40%.
The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each reporting period.
An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying amount is greater
than its estimated recoverable amount.
Depreciation methods, useful lives and residual values are reassessed at each reporting date.
JINDALEE LITHIUM LIMITED
NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
31
2. SUMMARY OF MATERIAL ACCOUNTING POLICIES (CONTINUED)
(i)
Impairment of Assets
The Group assesses at each reporting date whether there is an indication that an asset may be impaired. If any such
indication exists, or when annual impairment testing for an asset is required, the Group makes an estimate of the asset’s
recoverable amount. An asset’s recoverable amount is the higher of its fair value less costs to sell and its value in use and is
determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those
from other assets or groups of assets and the asset’s value in use cannot be estimated to be close to its fair value. In such
cases the asset is tested for impairment as part of the cash generating unit to which it belongs. When the carrying amount
of an asset or cash-generating unit exceeds its recoverable amount, the asset or cash-generating unit is considered impaired
and is written down to its recoverable amount.
In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate
that reflects current market assessments of the time value of money and the risks specific to the asset. Impairment losses
relating to continuing operations are recognised in those expense categories consistent with the function of the impaired
asset.
As assessment is also made at each reporting date as to whether there is any indication that previously recognised
impairment losses may no longer exist or may have decreased. If such indication exists, the recoverable amount is estimated.
A previously recognised impairment loss is reversed only if there has been a change in the estimates used to determine the
asset’s recoverable amount since the last impairment loss was recognised. If that is the case the carrying amount of the
asset is increased to its recoverable amount. That increased amount cannot exceed the carrying amount that would have
been determined, net of depreciation, had the impairment loss been recognised for the asset in prior years. Such reversal is
recognised in profit or loss unless the asset is carried at the revalued amount, in which case the reversal is treated as a
revaluation increase. After such a reversal the depreciation charge is adjusted in future periods to allocate the asset’s revised
carrying amount, less any residual value, on a systematic basis over its remaining useful life.
(j)
Exploration and Evaluation Expenditure
The Group’s policy with regards to exploration and evaluation expenditure, including the costs of acquiring licences and
permits, are capitalised as exploration and evaluation assets on an area of interest basis. Under this method exploration
and evaluation expenditure is carried forward on the following basis:
i)
Each area of interest is considered separately when deciding whether, and to what extent, to carry forward or
write off exploration and evaluation costs.
ii)
Exploration and evaluation expenditure related to an area of interest is carried forward provided that rights to
tenure of the area of interest are current and that one of the following conditions is met:
-
such evaluation costs are expected to be recouped through successful development and exploitation of the
area of interest or alternatively, by its sale; or
-
exploration and/or evaluation activities in the area of interest have not yet reached a stage which permits a
reasonable assessment of the existence or otherwise of economically recoverable reserves and active and
significant operations in relation to the area are continuing.
Exploration and evaluation costs accumulated in respect of each particular area of interest include only net direct
expenditure.
JINDALEE LITHIUM LIMITED
NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
32
2. SUMMARY OF MATERIAL ACCOUNTING POLICIES (CONTINUED)
(k)
Trade and Other Payables
Trade payables and other payables are carried at amortised cost and represent liabilities for goods and services provided to
the Group prior to the end of the financial year that are unpaid and arise when the Group becomes obliged to make future
payments in respect of the purchase of these goods and services. The amounts are unsecured and usually paid within 30
days of recognition.
(l)
Employee Entitlements
The Group’s liability for employee entitlements arising from services rendered by employees to reporting date are
recognised in current liabilities. Employee entitlements expected to be settled within one year together with entitlements
arising from wages and salaries, and annual leave which will be settled within one year, have been measured at their nominal
amount and include related on-costs.
(m)
Share Based Payment Transactions
Share based payments
Under AASB 2 Share Based Payments, the Group must recognise the fair value of options granted to directors, employees
and consultants as remuneration as an expense on a pro-rata basis over the vesting period in the statement of profit or loss
and other comprehensive income with a corresponding adjustment to equity.
The Group provides benefits to employees (including Directors) of the Group in the form of share-based payment
transactions, whereby employees render services in exchange for shares or rights over shares (“equity-settled transactions”).
The cost of these equity-settled transactions with employees (including Directors) is measured by reference to fair value at
the date they are granted. For options the fair value is determined using a Black-Scholes model.
(n)
Loss Per Share
(i)
Basic Loss Per Share
Basic loss per share is determined by dividing the operating loss attributable to the equity holder of the Group
after income tax by the weighted average number of ordinary shares outstanding during the financial period.
(ii) Diluted Loss Per Share
Diluted loss per share adjusts the figures used in determination of basic earnings per share by taking into account
amounts unpaid on ordinary shares and any reduction in earnings per share that will arise from the exercise of
options outstanding during the period.
(o)
Contributed Equity
Issued and paid up capital is recognised at the fair value of the consideration received by the Group. Any transaction costs
arising on the issue of ordinary shares are recognised directly in equity as a reduction of the share proceeds received.
(p)
Income Tax and Other Taxes
Current tax assets and liabilities for the current and prior periods are measured at the amount expected to be recovered
from or paid to the taxation authorities. The tax rates and tax laws used to compute the amount are those that are enacted
or substantively enacted by the reporting date.
Deferred income tax is provided on all temporary differences at the statement of financial position date between the tax
bases of assets and liabilities and their carrying amounts for financial reporting purposes.
JINDALEE LITHIUM LIMITED
NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
33
2.
SUMMARY OF MATERIAL ACCOUNTING POLICIES (CONTINUED)
(p)
Income Tax and Other Taxes (Continued)
Deferred income tax liabilities are recognised for all taxable temporary differences except:
•
When the deferred income tax liability arises from the initial recognition of goodwill or of an asset or liability in a
transaction that is not a business combination and that, at the time of the transaction, affects neither the accounting
profit nor taxable profit or loss; or
•
When the taxable temporary difference is associated with investments in subsidiaries, associates or interests in joint
ventures, and the timing of the reversal of the temporary difference can be controlled and it is probable that the
temporary difference will not reverse in the foreseeable future.
Deferred income tax assets are recognised for all deductible temporary differences, carry-forward of unused tax assets and
unused tax losses, to the extent that it is probable that taxable profit will be available against which the deductible temporary
differences and the carry-forward of unused tax credits and unused tax losses can be utilised, except:
•
When the deferred income tax asset relating to the deductible temporary difference arises from the initial recognition
of an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects
neither the accounting profit nor taxable profit or loss; or
•
When the deductible temporary difference is associated with investments in subsidiaries, associates or interest in
joint ventures, in which case a deferred tax asset is only recognised to the extent that it is probable that the temporary
difference will reverse in the foreseeable future and taxable profit will be available against which the temporary
difference can be utilised.
The carrying amount of deferred income tax assets is reviewed at each statement of financial position date and reduced to
the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred
income tax asset to be utilised.
Unrecognised deferred income tax assets are reassessed at each statement of financial position date and are recognised to
the extent that it has become probable that future taxable profit will allow the deferred tax asset to be recovered.
Income taxes relating to items recognised directly in equity are recognised in equity and not in profit or loss.
Deferred tax assets and deferred tax liabilities are offset only if a legally enforceable right exists to set off current tax assets
against current tax liabilities and the deferred tax assets and liabilities relate to the same taxable entity and the same taxation
authority.
Goods & Services Tax
Revenues, expenses and assets are recognised net of the amount of GST except:
•
Where the GST incurred on a purchase of goods and services is not recoverable from the taxation authority, in
which case the GST is recognised as part of the cost of acquisition of the asset or as part of the expense item as
applicable; and
•
Receivables and payables are stated with the amount of GST included.
The net amount of GST recoverable from, or payable to, the taxation authority is included as part of receivables or payables
in the statement of financial position.
JINDALEE LITHIUM LIMITED
NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
34
2.
SUMMARY OF MATERIAL ACCOUNTING POLICIES (CONTINUED)
(p)
Income Tax and Other Taxes (Continued)
Cash flows are included in the statement of cash flows on a gross basis and the GST component of cash flow arising from
investing and financing activities, which is recoverable from, or payable to, the taxation authority are classified as operating
cash flows.
Commitments and contingencies are disclosed net of the amount of GST recoverable from, or payable to, the taxation
authority.
(q)
Critical Accounting Estimates and Judgements
Estimates and judgements are continually evaluated and are based on historical experience and other factors, including
expectations of future events that may have a financial impact on the Group and that are believed to be reasonable under
the circumstances.
Accounting for capitalised exploration and evaluation expenditure
The Group’s accounting policy is stated at Note 2(j). There is some subjectivity involved in the carrying forward as capitalised
or writing off to the statement of profit or loss and other comprehensive income exploration and evaluation expenditure,
however management give due consideration to areas of interest on a regular basis and are confident that decisions to
either write off or carry forward such expenditure fairly reflect the prevailing situation.
Share-based payments
The Group measures share-based payments at fair value at the grant date. The fair value is determined using a Black-Scholes
model or other valuation technique appropriate for the instrument being valued.
Deferred tax balances
Deferred tax assets in respect of tax losses are not recognised in the financial statements as management considers that it
is currently not probable that future taxable profits will be available to utilise those tax losses. Management reviews on a
regular basis the future profitability of the Group to consider if tax losses should be recognised and to ensure that any tax
losses recognised will be utilised.
(r)
Investment and other financial assets
Financial assets at fair value through profit or loss
Financial assets at fair value through profit or loss (“FVTPL”) include financial assets that are either classified as held for
trading or that meet certain conditions and are designated at FVTPL upon initial recognition. All derivative financial
instruments fall into this category, except for those designated and effective as hedging instruments, for which the hedge
accounting requirements apply.
Assets in this category are measured at fair value with gains or losses recognised in profit or loss. The fair values of financial
assets in this category are determined by reference to active market transactions or using a valuation technique where no
active market exists.
JINDALEE LITHIUM LIMITED
NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
35
2. SUMMARY OF MATERIAL ACCOUNTING POLICIES (CONTINUED)
(r)
Investment and other financial assets (Continued)
Recognition and derecognition
Regular purchases and sales of financial assets are recognised on trade-date – the date on which the Group commits to
purchase or sell the asset. Investments are initially recognised at fair value plus transaction costs for all financial assets not
carried at fair value through profit or loss. Financial assets carried at fair value through profit and/or loss are initially
recognised at fair value and transaction costs are expensed in the statement of profit or loss and other comprehensive
income. Financial assets are derecognised when the rights to receive cash flows from the financial assets have expired or
have been transferred and the Group has transferred substantially all the risks and rewards of ownership.
Subsequent measurement
Loans and receivables and held-to-maturity investments are carried at amortised cost using the effective interest method.
Details on how the fair value of financial instruments is determined is disclosed in Notes 18 and 21.
(s)
Provisions
Provisions are measured at the present value of management’s best estimate of the expenditure required to settle the
present obligation at the reporting date. The discount rate used to determine the present value reflects current market
assessments of the time value of money and the risks specific to the liability.
(t)
Leases
Leases in which a significant portion of the risks and rewards of ownership are not transferred to the Group as lessee are
classified as operating leases. Payments made under operating leases (net of any incentives received from the lessor) are
charged to profit or loss on a straight-line basis over the period of the lease.
(u)
Associates
Associates are entities over which the Group has significant influence but not control or joint control. Investments in
associates are accounted for using the equity method. Under the equity method, the share of the profits or losses of the
associate is recognised in profit or loss and the share of the movements in equity is recognised in other comprehensive
income. Investments in associates are carried in the statement of financial position at cost plus post-acquisition changes in
the Group’s share of net assets of the associate. Goodwill relating to the associate is included in the carrying amount of the
investment and is neither amortised nor individually tested for impairment. Dividends received or receivable from associates
reduce the carrying amount of the investment.
When the Group’s share of losses in an associate equals or exceeds its interest in the associate, including any unsecured
long-term receivables, the Group does not recognise further losses, unless it has incurred obligations or made payments on
behalf of the associate.
The Group discontinues the use of the equity method upon the loss of significant influence over the associate and recognises
any retained investment at its fair value. Any difference between the associate's carrying amount, fair value of the retained
investment and proceeds from disposal is recognised in profit or loss.
JINDALEE LITHIUM LIMITED
NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
36
2. SUMMARY OF MATERIAL ACCOUNTING POLICIES (CONTINUED)
(v)
Segment information
Operating segments are presented using the 'management approach', where the information presented is on the same basis
as the internal reports provided to the Chief Operating Decision Makers (“CODMs”). The CODMs are responsible for the
allocation of resources to operating segments and assessing their performance.
CODMs have determined that there is one operating segment being mineral exploration in the United States.
(w)
Other income
The Group recognises revenue as follows:
Interest
Interest revenue is recognised as interest accrues using the effective interest method. This is a method of calculating the
amortised cost of a financial asset and allocating the interest income over the relevant period using the effective interest
rate, which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset
to the net carrying amount of the financial asset.
Other income
Other revenue is recognised when it is received or when the right to receive payment is established.
3. OTHER INCOME
2024
2023
$
$
Finance Income
19,684
83,806
Other income
Gain on sale of tenements and royalty1
-
174,413
Income from POSCO2
-
210,386
Other
-
1,410
-
386,209
1
The 2023 gain on sale of tenements includes non-cash consideration of $150,000 received as shares in Voltaic Strategic
Resources Limited and cash receipts of $25,000 net of costs of tenements sold of $587.
2
On 13 February 2023, Jindalee Lithium Limited announced that it had signed a non-binding Memorandum of
Understanding with major Korean conglomerate POSCO Holdings Inc. (NYSE: PKX) (“POSCO”), whereby POSCO and
Jindalee agreed to undertake joint research on a large composite sample from McDermitt. This MOU follows initial
analysis of a smaller sample of McDermitt ore undertaken by POSCO in 2022. Jindalee shipped a large composite sample
to POSCO for initial test work and following a request from POSCO, beneficiated samples were shipped to POSCO in the
March 2024 quarter. Test work on these samples is being funded entirely by POSCO.
JINDALEE LITHIUM LIMITED
NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
37
4. TAXATION
(a) Numerical reconciliation of income tax expense to prima facie tax payable
2024
2023
$
$
Loss before income tax:
(4,687,923)
(3,333,211)
Tax at the Australian tax rate of 25% (2023: 25%)
(1,171,981)
(833,303)
Tax effect of amounts which are not deductible in calculating
taxable income:
Foreign income not assessable
273,754
112,096
Non-deductible (income)/expenses
4,672
557,227
Other deductible expenses
(5,350)
-
Capital losses not utilised
-
(172,828)
Share-based payments
390,066
533,556
Prior year adjustments
138,357
Income tax losses not recognised
-
(196,748)
Deferred income tax not recognised
370,482
-
Total income tax benefit
-
-
Profit/(Loss) before income tax: discontinued operations
-
755,933
Tax at the Australian tax rate of 25% (2023: 25%)
-
188,983
Tax effect of amounts which are not deductible in calculating
taxable income – discontinuing operations
Non-deductible (income)/expenses
-
(197,226)
Income tax not recognised
-
8,243
Total Income tax benefit
-
-
The franking account balance at year end was $421,411 (2023: $421,411).
Jindalee Lithium Limited and its wholly owned subsidiaries have not yet entered the tax consolidation regime.
Jindalee Lithium Limited has unrecognised deferred tax assets at year-end of $1,972,170 (2023: $1,389,885) representing
unrecognised tax losses.
Jindalee Lithium Limited has group carried forward revenue tax losses of $6,626,093 as at 30 June 2024 and carried forward
capital losses of $Nil.
Jindalee Lithium Limited is considered a base rate entity for income tax purposes and is therefore subject to income tax at a
rate of 25% (2023: 25%).
Net deferred tax assets have not been brought to account as it is not probable within the immediate future that tax profits
will be available against which deductible temporary differences and tax losses can be utilised. The Company’s ability to use
losses in the future is subject to the Company satisfying the relevant tax authority’s criteria for using these losses.
JINDALEE LITHIUM LIMITED
NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
38
5. CASH FLOW INFORMATION
(a) Reconciliation of loss after income tax to net cash outflow from operating activities
2024
2023
$
$
Loss after income tax
(5,191,974)
(2,577,277)
Share-based payments
2,064,312
2,134,223
Depreciation and amortisation
58,355
59,696
Finance Income
-
14,648
Finance Costs
-
10,830
Foreign Currency gains and losses
55,144
7,650
Loss on sale of investment
-
41,232
Share of (profit)/loss of associate
(639,168)
179,238
Non-cash items from discontinued operations
-
(621,588)
Fair value movement on financial assets
1,150,067
(515,332)
Other income (non-cash)
(940)
(446,011)
Change in operating assets and liabilities during the financial year:
Increase/(decrease) in trade and other receivables
(76,623)
234,117
Increase/(decrease) in trade and other payables
303,323
483,980
Increase/(decrease) in provisions
(13,005)
92,586
Net cash outflow from operating activities
(2,290,509)
(902,008)
(b) Non-cash investing and financing activities
Non-cash investing and financing activities disclosed in other notes are:
-
Fair value movement of financial assets at fair value through profit and loss (Note 10)
6. LOSS PER SHARE
2024
2023
$
$
Loss used in calculation of basic and diluted loss per share
(4,687,923)
(2,577,277)
Basic loss per share (cents per share)
(7.88)
(4.49)
Diluted loss per share (cents per share)
(7.88)
(4.49)
Weighted average number of ordinary shares used as the
denominator in calculating basic and diluted loss per share
59,492,766
57,378,966
Options on issue were not considered to be dilutive as their impact would have been to increase the loss per share.
7. DIVIDENDS
No dividend has been declared for the year ended 30 June 2024 (2023: nil).
JINDALEE LITHIUM LIMITED
NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
39
8.
CASH AND CASH EQUIVALENTS
2024
2023
$
$
Cash at bank
150,802
778,467
Term deposit
147,395
1,463,458
298,197
2,241,925
9.
TRADE AND OTHER RECEIVABLES
2024
2023
$
$
Current
Trade and other receivables
142,221
79,188
Trade and other receivables are denominated in Australian dollars and are interest free with settlement terms of between 7
and 30 days. No trade receivables were past due or impaired as at 30 June 2024 (2023: nil). Collectability of trade receivables
is reviewed on an ongoing basis. Debts which are known to be uncollectible are written off by reducing the carrying amount
directly. A provision for doubtful receivables is established, using the expected credit loss model under AASB 9 when there is
objective evidence that the Group will not be able to collect all amounts due according to the original terms of the receivables.
The amounts held in trade and other receivables do not contain impaired assets and are not past due. Based on the credit
history of these trade and other receivables, it is expected that these amounts will be received when due.
Due to the short-term nature of these receivables their carrying value is assumed to be their fair value. Please refer to Note
18 for information on credit risk.
10. FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT AND LOSS
2024
2023
$
$
Non-current
Shares in listed corporations
-
Opening balance
2,032,100
1,902,845
- Additions
-
150,000
- Disposals
(1,301,554)
(536,077)
- Fair value movement*
(581,713)
515,332
-
Closing balance
148,833
2,032,100
*Note that amount in Consolidated Statement of Profit or Loss and Other Comprehensive Income also includes $568,354 in
relation to gain/loss on sales.
The fair value of listed financial assets at fair value through profit and loss has been determined directly by reference to
published price quotations in an active market. Refer to Note 18 for information on Group’s exposure to price risk.
JINDALEE LITHIUM LIMITED
NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
40
11. PROPERTY, PLANT AND EQUIPMENT
2024
2023
$
$
Plant and equipment - at cost
464,430
461,921
Less: accumulated depreciation
(106,536)
(102,721)
Total property, plant and equipment
357,894
359,200
Reconciliation of the carrying amount of property, plant and
equipment:
Carrying amount at beginning of year
359,200
66,842
Additions and disposals (net)
2,508
297,514
Less: depreciation expense for year
(3,814)
(5,156)
Carrying amount at end of year
357,894
359,200
12. EXPLORATION AND EVALUATION EXPENDITURE
2024
2023
$
$
Balance at beginning of year
11,300,580
7,965,835
Exploration expenditure incurred
5,214,161
4,920,275
Disposal of tenements/interest in JV1
-
(1,585,530)
Balance at the end of the year
16,514,741
11,300,580
1The Group completed a demerger of its wholly owned subsidiary Dynamic Metals Limited on 11 January 2023, as part of
which the Western Australian tenements were sold.
Included in the disposal amount is $1,578,531 relating to Western Australian tenements held by the Company, which were
sold to Dynamic Metals Limited as part of the spin-out. The tenements were sold for 7,686,490 shares valued at $1,537,298,
resulting in a loss of $41,232 on disposal. The remaining balance of $7,000 was held by HiTec Minerals Pty Ltd and disposed
of as part of the spin-out transaction. Refer to Note 26 for further detail.
The balance carried forward represents projects in the exploration and evaluation phase.
Ultimate recoupment of exploration expenditure carried forward is dependent on successful development and commercial
exploitation, or alternatively, sale of respective areas.
13. TRADE AND OTHER PAYABLES
2024
2023
$
$
Trade and other payables
1,646,404
511,265
Trade and other payables are non-interest bearing and are normally settled on 30 day terms.
The carrying value of trade and other payables are assumed to be the same as their fair values, due to their short-term
nature.
JINDALEE LITHIUM LIMITED
NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
41
14. CONTRIBUTED EQUITY
2024
2023
$
$
Share capital
Ordinary fully paid shares
25,058,279
21,326,715
Movements in ordinary shares during the past two years were as follows:
Number
Issue Price
$
1 July 2022
Balance at beginning of year
57,378,966
21,326,062
July 22 to June 23
Reimbursement of share issue costs
653
30 June 2023
Balance at the end of year
57,378,966
21,326,715
1 July 2023
Balance at beginning of year
57,378,966
21,326,715
20 October 2023
Issue of shares
2,500,000
1.40
3,500,000
11 November 2023
Issue of shares
436,151
1.40
610,611
11 December 2023
Issue of shares
175,000
1.40
245,000
July 23 to June 24
Share issue costs
(624,047)
30 June 2024
60,490,117
25,058,279
Ordinary shares participate in dividends. On winding up of the Group any proceeds would be distributed to the number of
shares held.
At shareholder meetings on a show of hands every holder of ordinary shares present at a meeting in person or by proxy, is
entitled to one vote, and upon a poll each share is entitled to one vote.
15. ACCUMULATED LOSSES
2024
2023
$
$
Retained earnings at the beginning of the financial year
(10,065,688)
(7,488,411)
Loss attributable to members of the Group
(4,687,923)
(2,577,277)
Reclass of expired/lapsed options from reserve
3,610,209
-
Accumulated losses at the end of the financial year
(11,143,402)
(10,065,688)
JINDALEE LITHIUM LIMITED
NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
42
16. RESERVES
2024
2023
$
$
Share-based payment reserve
Balance at the beginning of the year
6,566,932
4,432,709
Share-based payments (refer to note 18)
1,909,555
2,134,223
Reclass of expired/lapsed options from reserve
(3,610,209)
-
Balance at the end of the year
4,866,278
6,566,932
Foreign Currency reserve
Balance at the beginning of the year
(9,915)
-
Foreign exchange movement
(8,833)
(9,915)
Balance at the end of the year
(18,748)
(9,915)
Total Reserves
4,847,530
6,557,017
Nature and purpose of the reserves:
The share-based payments reserve is used to recognise the fair value of options issued but not exercised.
The foreign currency reserve is used to recognise exchange differences arising from the translation of the financial statements
of foreign operations to Australian dollars.
17. SHARE BASED PAYMENT TRANSACTIONS
Share based payment transactions are recognised at fair value in accordance with AASB 2. The expense in the year was
$1,560,261 (2023: $2,134,223).
Employee Incentive Securities Plan
The Jindalee Lithium Limited Employee Incentive Securities Plan (“Plan”) was established to encourage all eligible directors,
executive officers and employees who have been continuously employed by the Group to have a greater involvement in the
achievement of the Group’s objectives and to provide an incentive to strive to that end by participating in the future growth
and prosperity of the Group through share ownership.
The Plan allows the Group to issue free options to eligible persons. The options can be granted free of charge and are
exercisable at a fixed price in accordance with the rules of the Plan.
JINDALEE LITHIUM LIMITED
NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
43
17. SHARE BASED PAYMENT TRANSACTIONS (CONTINUED)
Summary of Options
Set out below are summaries of options granted during current and prior financial years.
Grant Date
Expiry Date
Exercise Price
Notes on
Fair Value
2024
2023
Number
Number
Opening Balance
5,000,000
2,375,000
Expired/lapsed during the year
(1,000,000)
(500,000)
20/07/2022
28/07/2025
3.78
1,000,000
28/07/2022
28/07/2025
3.78
1,000,000
30/11/2022
30/11/2025
3.32
500,000
17/01/2023
25/01/2026
5.00
125,000
22/03/2023
22/03/2026
3.63
500,000
1/7/2023
10/7/2026
3.50
1
400,000
13/10/2023
20/10/2026
2.10
2
500,000
1/12/2023
27/02/2027
1.50
3
1,500,000
1/12/2023
27/02/2027
2.50
4
1,500,000
1/12/2023
27/02/2028
3.50
5
1,500,000
Closing Balance
9,400,000
5,000,000
Vested and exercisable at the end of
the year
3,975,000
3,375,000
Weighted average exercise price at
the end of the year
$ 2.566 $ 2.784
The weighted average remaining contractual life of share options outstanding at the end of the period is 2.15 years (2023:
1.75 years).
Fair Value of Share Options and Assumptions
The fair value of services received in return for share options granted to directors is measured by reference to the fair value
of options granted. The estimate of the fair value of the services is measured based on a Black-Scholes option valuation
methodology. This life of the options and early exercise option are built into the option model.
The assumptions used for the options valuation are as follows:
1
2
3
4
5
Grant Date
01/07/2023
13/10/2023
01/12/2023
01/12/2023
01/12/2023
Exercise Price
$3.50
$2.10
$1.50
$2.50
$3.50
Expected Life
3 years
3 years
3 years
3 years
4 years
Share Price at Time of
Grant
$1.745
$1.72
$0.937
$0.937
$0.937
Expected Volatility
65%
65%
65%
65%
65%
Dividend Yield
0%
0%
0%
0%
0%
Risk Free Interest Rate
3.97%
4.08%
4.07%
4.07%
4.07%
Option Value
$0.473
$0.699
$0.308
$0.190
$0.196
Vesting Conditions
Tranche 1: 100,000 options, 6 months
from date of acceptance - vested
Tranche 2: 100,000 options, 12 months
from date of acceptance
Tranche 3: 200,000 options, 24 months
from date of acceptance
Immediatel
y
1,500,000
options, 6
months
service
1,500,000
options, 12
months
service
1,500,000
options, 24
months
service
JINDALEE LITHIUM LIMITED
NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
44
18. FINANCIAL AND CAPITAL RISK MANAGEMENT
(a) Capital Risk Management
The Group manages its capital to ensure that it will be able to continue as a going concern.
In managing its capital, the Group’s primary objective is to ensure its continued ability to provide a consistent return for its
equity shareholders. In order to achieve this objective, the Group seeks to maintain a capital structure that balances risks and
returns at an acceptable level and also to maintain a sufficient funding base to enable the Group to meet its working capital
and strategic investment needs. In making decisions to adjust its capital structure to achieve these aims, either through new
share issues, or sourcing of debt, the Group considers not only its short-term position but also its long-term operational and
strategic objectives.
There have been no significant changes to the Group’s capital management objectives, policies and processes in the year nor
has there been any change in what the Group considers to be its capital.
The capital structure of the Group consists of cash and cash equivalents (Note 8) and equity attributable to equity holders of
the Group, comprising issued capital, reserves and retained earnings (accumulated losses) as disclosed in Notes 14, 15 and
16 respectively.
(b) Significant Accounting Policies
Details of the significant accounting policies and methods adopted, including the criteria for recognition, the basis of
measurement and the basis on which income and expenses are recognised, in respect of each class of financial asset, financial
liability and equity instrument are disclosed in Note 2 of the financial statements.
(c) Categories of Financial Instruments
2024
2023
$
$
Financial Assets
Current
Cash and cash equivalents
298,197
2,241,925
Trade and other receivables
61,434
63,076
Total Current Financial Assets
359,631
2,305,001
Non-current
Financial assets at fair value through profit and loss
148,833
2,032,100
Total Non-Current Financial Assets
148,833
2,032,100
Financial Liabilities
Current
Trade and other payables
1,646,404
511,265
Lease liabilities
-
58,987
Total Current Financial Liabilities
1,646,404
570,252
Non-current
Total Non-Current Financial Liabilities
-
-
JINDALEE LITHIUM LIMITED
NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
45
18. FINANCIAL AND CAPITAL RISK MANAGEMENT (CONTINUED)
(d) Credit Risk Exposure
As at the reporting date, the Group has no significant concentrations of credit risk. The carrying amount reflected above
represents the Group’s maximum exposure to credit risk.
(e) Interest Rate Risk Exposure
The Group’s exposure to interest rate risk arises from assets bearing variable interest rates. The weighted average interest
rate on cash holdings was 0.96% at 30 June 2024 (2023: 2.32%). All other financial assets and liabilities are non-interest
bearing. The net fair value of the Group’s financial assets and liabilities approximates their carrying value.
The Group invests its surplus funds on deposit with Australian banking financial institutions, namely the National Australia
Bank and ANZ Bank. For banks and financial institutions, only independently rated parties with a minimum rating of AA- are
accepted.
The table below summarises the impact of an increase/decrease in interest rates received on financial instruments held at
year end on the Group’s pre-tax profit/(loss) for the year and on equity. The analysis is based on the assumption that rates
increased/decreased proportionally by 10% of the current weighted average interest rate with all other variables held
constant.
2024
2023
Impact on profit and equity
$
$
Increase of 10%
205,622
373,945
Decrease of -10%
(205,622)
(373,945)
(f) Price Risk
The Group is exposed to equity securities price risk. This arises from investments held by the Group and classified in the
statement of financial position as financial assets at fair value through profit and loss. The Group is not exposed to commodity
price risk.
To manage its price risk arising from investments in equity securities, the Group diversifies its portfolio.
The table below summarises the impact of an increase/decrease in prices of securities held at year end on the Group’s pre-
tax profit for the year and on equity. The analysis is based on the assumption that the prices of all securities
increased/decreased by 10% with all other variables held constant.
2024
2023
Impact on profit and equity
$
$
Increase of 10%
14,883
203,210
Decrease of -10%
(14,883)
(203,210)
JINDALEE LITHIUM LIMITED
NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
46
18. FINANCIAL AND CAPITAL RISK MANAGEMENT (CONTINUED)
(g) Liquidity Risk
The liquidity position of the Group is managed to ensure sufficient liquid funds are available to meet financial commitments
in a timely and cost-effective manner. The Board reviews the Group’s liquidity position on a regular basis including cash flow
statements to determine the forecast liquidity position and maintain appropriate liquidity levels. Note 13 details the Group’s
current obligations which are all due within 12 months and reflect the actual cash flows given the short-term nature of these
liabilities.
There are no unused borrowing facilities from any financial institution.
(h) Fair Values
The carrying amounts and estimated fair values of financial assets and financial liabilities are as follows:
2024
2023
$
$
Financial Assets
Cash and cash equivalents
298,197
2,241,925
Trade and other receivables
61,434
63,076
Financial assets at fair value through profit and loss
148,833
2,032,100
Total Financial Assets
508,464
4,337,101
Financial Liabilities
Trade and other payables
1,646,404
511,265
Lease liabilities
-
58,987
Total Financial Liabilities
1,646,404
570,252
The methods and assumptions used to estimate the fair value of financial instruments are outlined below:
Cash
The carrying amount is fair value due to the liquid nature of these assets.
Receivables/payables
Due to the short-term nature of these financial rights and obligations, their carrying amounts are estimated to represent their
fair values. Non-current receivables receive a market rate of interest and are assessed as representing their fair values.
Financial assets at fair value through profit and loss
Assets in this category are measured at fair value with gains or losses recognised in profit or loss. The fair values of financial
assets in this category are determined by reference to active market transactions or using a valuation technique where no
active market exists. Refer to Note 21 for further details.
19. CONTINGENCIES
Contingent Liabilities
There are no contingent liabilities of the Group at 30 June 2024 (30 June 2023: Nil).
JINDALEE LITHIUM LIMITED
NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
47
20. COMMITMENTS
Capital Commitment
There are no capital expenditure commitments for the Group as at 30 June 2024 (30 June 2023: Nil).
21. FAIR VALUE MEASUREMENTS OF FINANCIAL INSTRUMENTS
The carrying values of financial assets and liabilities of the Group approximate their fair values. Fair values of financial assets
and liabilities have been determined for measurement and/or disclosure purposes.
Fair value hierarchy
The Group classifies assets and liabilities carried at fair value using a fair value hierarchy that reflects the significance of the
inputs used in determining that value. The table following analyses financial instruments carried at fair value by the valuation
method.
The different levels in the hierarchy have been defined as follows:
Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities.
Level 2:
inputs other than quoted prices included within Level 1 that are observable for the asset or liability,
either directly (as prices) or indirectly (derived from prices).
Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs).
Recurring fair value measurements
Level 1
Level 2
Level 3
Total
$
$
$
$
30 June 2023
Financial assets at fair value through profit and loss
2,032,100
-
- 2,032,100
Total as at 30 June 2023
2,032,100
-
-
2,032,100
30 June 2024
Financial assets at fair value through profit and loss
148,833
-
-
148,833
Total as at 30 June 2024
148,833
-
-
148,833
22. CONTROLLED ENTITIES
% held
State of
Date of
2024
2023
Controlled Entity
2024
2023
Class
Incorporation
Incorporation
$
$
HiTech Minerals Inc.
100%
100%
Ord
Nevada, USA
21/02/2018
-
-
Dynamic Metals
Limited
25.5%
25.5%
Ord
WA
24/05/2022
2,959,930
2,360,764
JINDALEE LITHIUM LIMITED
NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
48
23. RELATED PARTY TRANSACTIONS
(a) Parent entity
The parent entity within the Group is Jindalee Lithium Limited.
(b) Subsidiaries
Interests in subsidiaries are set out in Note 22.
(c) Key management personnel compensation
During the year the Group paid a total of $85,800 and had a payable at year end of $162,800 to Western Geological Services
(a division of Jopan Management Pty Ltd), the fees being for the provision of technical and management services provided to
the Group by Mr Lindsay Dudfield (Executive Director) (2023: $203,125). Mr Dudfield’s spouse is the major shareholder of
and the sole director and company secretary of Jopan Management Pty Ltd.
During the year, the Group incurred a share-based payment expense of $972,026 associated with the granting of options to
directors and employees.
2024
2023
$
$
Short-term employee benefits
527,734
469,698
Post-employment benefits
35,651
26,746
Share-based payments
972,026
780,206
1,535,411
1,276,650
Refer to the remuneration report contained within the Directors’ Report and Note 17 for further details on other transactions
with key management personnel and share-based compensation.
24. REMUNERATION OF AUDITORS
2024
2023
$
$
Amounts paid or payable at to the auditors for:
Audit and review of financial statements
48,100
30,686
Total remuneration for audit and other assurance services
48,100
30,686
JINDALEE LITHIUM LIMITED
NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
49
25. PARENT ENTITY FINANCIAL INFORMATION
The following details information related to the parent entity, Jindalee Lithium Limited, at 30 June 2024 and 30 June 2023.
Information presented here has been prepared using consistent accounting policies as presented in Note 2.
2024
2023
$
$
Financial Position
Assets
current assets
481,688
2,100,011
non-current assets
19,704,756
16,315,675
Total assets
20,186,444
18,415,686
Liabilities
current liabilities
(1,424,037)
(541,352)
non-current liabilities
-
-
Total liabilities
(1,424,037)
(541,352)
Net assets
18,762,407
17,874,334
Equity
Issued capital
24,893,633
21,326,715
Accumulated losses
(11,666,311)
(10,048,213)
Reserves
5,535,085
6,595,832
Total equity
18,762,407
17,874,334
Financial Performance
Loss for the year
(2,003,003)
(2,717,421)
Other comprehensive income
-
Total comprehensive loss
(2,003,003)
(2,717,421)
No guarantees have been entered into by Jindalee Lithium Limited in relation to the debts of its subsidiary companies.
Jindalee Lithium Limited had no commitments or contingent liabilities at year end other than those disclosed in Notes 19 and
20.
26. GROUP STRUCTURE
a) Equity Accounted Investment – Dynamic Metals Limited
The Group initially recognised its retained investment at the fair value of the shares acquired, being $2,500,000. The quoted
fair value of the shares as at 30 June 2024 was $1,875,000 (2023: $4,000,000).
Subsequent equity accounting
The Group recognises its share of the profits of Dynamic Metals Limited, being 25.5% of its net profit after tax, as income in
each reporting period. The Group recognised $639,168 in equity accounted profits (2023: $175,578 equity accounted losses)
for the year ended 30 June 2024.
The following is a summary of the financial information presented in the financial statements of Dynamic Metals Limited,
amended to include adjustments made by the Group in applying the equity method.
JINDALEE LITHIUM LIMITED
NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
50
26. GROUP STRUCTURE (Continued)
a)
Equity Accounted Investment – Dynamic Metals Limited (Continued)
Information relating to associates that are material to the Company are set out below:
30-Jun-24
30-Jun-23
$
$
Summarised statement of financial position
Current assets
6,169,251
4,564,592
Non-current assets
5,607,238
4,319,997
Total assets
11,776,489
8,884,589
Current liabilities
560,002
277,721
Non-current liabilities
3,435
32,842
Total liabilities
563,437
310,563
Net assets
11,213,052
8,574,026
Summarised statement of profit or loss and other
comprehensive income
Income
3,577,640
99,965
Expenses
(1,071,099)
(802,858)
Profit before income tax
2,506,541
(702,893)
Income tax expense
-
-
Profit after income tax
2,506,541
(702,893)
Other comprehensive income
-
-
Total comprehensive income
2,506,541
(702,893)
b) Reconciliation of the Group's carrying amount
30-Jun-24
30-Jun-23
$
$
Opening balance
2,320,762
2,500,000
Share of profit/(loss) - associate
639,168
(179,238)
Closing carrying amount
2,959,930
2,320,762
JINDALEE LITHIUM LIMITED
NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
51
27. EVENTS OCCURING AFTER THE REPORTING PERIOD
On 4 July 2024 Jindalee announced a Capital Raising via the following components:
Share Placement
The Company raised circa $0.6 million via a Placement to institutional investors, directors and management at an issue price
of $0.30 per ordinary full paid Share, with every two Shares providing applicants one free attaching quoted Short Term Option
exercisable at $0.40 expiring on 30 June 2025 and one free attaching quoted Long Term Option exercisable at $0.60 expiring
on 30 June 2027. The Placement included a $0.5 million commitment from Mercer Street. Investor and management
Placement Shares were issued on 10 July 2024, with Director Placement Shares and Placement Attaching Options approved
by shareholders at the Company’s General Meeting and issued on 30 August 2024
Entitlement Issue
The Company raised circa $2.5 million via a non-renounceable Entitlement Issue on a 1 for 6 basis on the same terms as the
Placement, including the issue of Attaching Options. Jindalee Directors participated in the Entitlement Issue. Entitlement Issue
Shares and Attaching Options were issued on 9 August 2024.
Convertible Notes Facility
A Convertible Note funding facility agreement was entered into with Mercer Street for a facility of up to $12 million. An initial
tranche of $3.0 million was settled in two phases, with the first Convertible Notes up to $1.5 million and commencement
shares issued on 12 July 2024, and the second Convertible Notes up to $1.5 million, and unquoted subscription options
(exercisable at $0.37 expiring two years from the date of issue) issued following the Company’s General Meeting. The
agreement allows for the potential to raise up to a further $9.0 million in Convertible Notes.
Funds raised via the Capital Raising are being directed to deliver value optimisation opportunities in the McDermitt PFS, which
are expected to improve capital intensity and operating costs (versus initial PFS scope) and provide runway to achieve several
key value catalysts in H2 2024, including the optimised PFS and potential for non-dilutive US government grant funding.
All resolutions put to shareholders at the General Meeting were carried, with Resolution 10 withdrawn prior to the meeting
(refer to ASX announcement dated 9 August 2024).
Apart from the above, there has not arisen in the interval between the end of the financial year and the date of this report
any item, transaction or event of a material and unusual nature likely, in the opinion of the Directors, to affect significantly
the operations, the results of those operations, or the state of affairs of the Group in future financial years.
JINDALEE LITHIUM LIMITED
CONSOLIDATED ENTITY DISCLOSURE STATEMENT
52
Entity name
Entity type
Place formed / Country
of incorporation
Ownership
interest
Tax residency
%
Jindalee Lithium Limited
Body corporate
Australia
N/A
Australia
HiTech Minerals Inc.
Body corporate
Nevada, USA
100%
USA & Australia
Basis of Preparation
This Consolidated Entity Disclosure Statement (CEDS) has been prepared in accordance with the Corporations Act 2001. It
includes certain information for each entity that was part of the consolidated entity at the end of the financial year.
Determination of Tax Residency
Section 295 (3A) of the Corporation Acts 2001 defines tax residency as having the meaning in the Income Tax Assessment
Act 1997. The determination of tax residency involves judgement as there are currently several different interpretations that
could be adopted, and which could give rise to a different conclusion on residency. It should be noted that the definitions of
‘Australian resident’ and ‘foreign resident’ in the Income Tax Assessment Act 1997 are mutually exclusive. This means that
if an entity is an ‘Australian resident’ it cannot be a ‘foreign resident’ for the purposes of disclosure in the CEDS.
In determining tax residency, the consolidated entity has applied the following interpretations:
•
Australian tax residency
The consolidated entity has applied current legislation and judicial precedent, including having regard to the Tax
Commissioner's public guidance in Tax Ruling TR 2018/5.
•
Foreign tax residency
Where necessary, the consolidated entity has used independent tax advisers in foreign jurisdictions to assist in determining
tax residency and ensure compliance with applicable foreign tax legislation.
JINDALEE LITHIUM LIMITED
DIRECTORS’ DECLARATION
53
JINDALEE LITHIUM LIMITED AND ITS CONTROLLED ENTITIES
ACN 064 121 133
DECLARATION BY DIRECTORS
In the Directors’ opinion:
1.
The financial statements, comprising the consolidated statement of profit or loss and other comprehensive income,
consolidated statement of financial position, consolidated statement of cash flows, consolidated statement of
changes in equity and accompanying notes, are in accordance with the Corporations Act 2001, and:
a)
complying with Accounting Standards and the Corporations Regulations 2001 and other mandatory professional
reporting requirements; and
b)
giving a true and fair view of the Group’s financial position as at 30 June 2024 and of its performance for the
year ended on that date.
2.
In the Directors’ opinion, there are reasonable grounds to believe that the Company will be able to pay its debts as
and when they become due and payable.
3.
The Directors have been given the declarations as required by section 295A of the Corporations Act 2001.
4.
Note 2(a) confirms that the financial statements also comply with International Reporting Standards as issued by the
International Accounting Standards Board.
5.
The information disclosed in the consolidated entity disclosure statement on page 55 is true and correct.
This declaration is made in accordance with a resolution of the Board of Directors and is signed for and on behalf of the
Directors by:
Executive Director
30 September 2024 at Perth, Western Australia
BDO Audit Pty Ltd ABN 33 134 022 870 is a member of a national association of independent entities which are all members of BDO Australia Ltd ABN 77 050 110 275, an
Australian company limited by guarantee. BDO Audit Pty Ltd and BDO Australia Ltd are members of BDO International Ltd, a UK company limited by guarantee, and form
part of the international BDO network of independent member firms. Liability limited by a scheme approved under Professional Standards Legislation.
Level 9, Mia Yellagonga Tower 2
5 Spring Street
Perth, WA 6000
PO Box 700 West Perth WA 6872
Australia
Tel: +61 8 6382 4600
Fax: +61 8 6382 4601
www.bdo.com.au
DECLARATION OF INDEPENDENCE BY ASHLEIGH WOODLEY TO THE DIRECTORS OF JINDALEE LITHIUM
LIMITED
As lead auditor of Jindalee Lithium Limited for the year ended 30 June 2024, I declare that, to the best
of my knowledge and belief, there have been:
1.
No contraventions of the auditor independence requirements of the Corporations Act 2001 in
relation to the audit; and
2.
No contraventions of any applicable code of professional conduct in relation to the audit.
This declaration is in respect of Jindalee Lithium Limited and the entity it controlled during the period.
Ashleigh Woodley
Director
BDO Audit Pty Ltd
Perth
30 September 2024
BDO Audit Pty Ltd ABN 33 134 022 870 is a member of a national association of independent entities which are all members of BDO Australia Ltd ABN 77 050 110 275, an
Australian company limited by guarantee. BDO Audit Pty Ltd and BDO Australia Ltd are members of BDO International Ltd, a UK company limited by guarantee, and form
part of the international BDO network of independent member firms. Liability limited by a scheme approved under Professional Standards Legislation.
Level 9, Mia Yellagonga Tower 2
5 Spring Street
Perth, WA 6000
PO Box 700 West Perth WA 6872
Australia
Tel: +61 8 6382 4600
Fax: +61 8 6382 4601
www.bdo.com.au
INDEPENDENT AUDITOR'S REPORT
To the members of Jindalee Lithium Limited
Report on the Audit of the Financial Report
Opinion
We have audited the financial report of Jindalee Lithium Limited (the Company) and its subsidiary (the
Group), which comprises the consolidated statement of financial position as at 30 June 2024, the
consolidated statement of profit or loss and other comprehensive income, the consolidated statement
of changes in equity and the consolidated statement of cash flows for the year then ended, and notes
to the financial report, including material accounting policy information, the consolidated entity
disclosure statement and the directors’ declaration.
In our opinion the accompanying financial report of the Group, is in accordance with the Corporations
Act 2001, including:
(i)
Giving a true and fair view of the Group’s financial position as at 30 June 2024 and of its
financial performance for the year ended on that date; and
(ii)
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 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 confirm that the independence declaration required by the Corporations Act 2001, which has been
given to the directors of the Company, would be in the same terms if given to the directors as at the
time of this auditor’s report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our opinion.
Material uncertainty related to going concern
We draw attention to Note 2(d) in the financial report which describes the events and/or conditions which
give rise to the existence of a material uncertainty that may cast significant doubt about the group’s
ability to continue as a going concern and therefore the group may be unable to realise its assets and
discharge its liabilities in the normal course of business. Our opinion is not modified in respect of this
matter.
Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most significance in
our audit of the financial report of the current period. These matters were addressed in the context of
our audit of the financial report as a whole, and in forming our opinion thereon, and we do not provide
a separate opinion on these matters. In addition to the matter described in the Material uncertainty
related to going concern section, we have determined the matters described below to be the key audit
matters to be communicated in our report.
Recoverability of exploration and evaluation expenditure
Key audit matter
How the matter was addressed in our audit
As disclosed in Note 12 to the Financial Report, the
carrying value of capitalised exploration and
evaluation expenditure represents a significant asset
of the Group.
Refer to Note 2(j) of the Financial Report for a
description of the accounting policy and significant
judgements applied to capitalised exploration and
evaluation expenditure.
In accordance with AASB 6 Exploration for and
Evaluation of Mineral Resources (“AASB 6”), the
recoverability of exploration and evaluation
expenditure requires significant judgment by
management in determining whether there are any
facts or circumstances that exist to suggest that the
carrying amount of this asset may exceed its
recoverable amount. As a result, this is considered a
key audit matter.
Our procedures included, but were not limited to:
•
Obtaining a schedule of the areas of interest
held by the Group and assessing whether the
rights to tenure of those areas of interest
remained current at balance date;
•
Considering the status of the ongoing
exploration programmes in the respective
areas of interest by holding discussions with
management, and reviewing the Group’s
exploration budgets, ASX announcements and
directors’ minutes;
•
Considering whether any such areas of
interest had reached a stage where a
reasonable assessment of economically
recoverable reserves existed;
•
Considering whether any facts or
circumstances existed to suggest impairment
testing was required; and
Assessing the adequacy of the related disclosures in
Notes 2(j) and 12 to the Financial Report.
Other information
The directors are responsible for the other information. The other information comprises the
information in the Group’s annual report for the year ended 30 June 2024, but does not include the
financial report and the auditor’s report thereon.
Our opinion on the financial report does not cover the other information and we do not express any
form of assurance conclusion thereon.
In connection with our audit of the financial report, our responsibility is to read the other information
and, in doing so, consider whether the other information is materially inconsistent with the financial
report or our knowledge obtained in the audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this
other information, we are required to report that fact. We have nothing to report in this regard.
Responsibilities of the directors for the Financial Report
The directors of the Company are responsible for the preparation of:
a)
the financial report that gives a true and fair view in accordance with Australian Accounting
Standards and the Corporations Act 2001 and
b)
the consolidated entity disclosure statement that is true and correct in accordance with the
Corporations Act 2001, and
for such internal control as the directors determine is necessary to enable the preparation of:
i) the financial report that gives a true and fair view and is free from material misstatement, whether
due to fraud or error; and
ii) the consolidated entity disclosure statement that is true and correct and is free of misstatement,
whether due to fraud or error.
In preparing the financial report, the directors are responsible for assessing the ability of the group to
continue as a going concern, disclosing, as applicable, matters related to going concern and using the
going concern basis of accounting unless the directors either intend to liquidate the Group or to cease
operations, or has 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.
A further description of our responsibilities for the audit of the financial report is located at the
Auditing and Assurance Standards Board website at:
https://www.auasb.gov.au/admin/file/content102/c3/ar1_2020.pdf
This description forms part of our auditor’s report.
Report on the Remuneration Report
Opinion on the Remuneration Report
We have audited the Remuneration Report included in pages 16 to 22 of the directors’ report for the
year ended 30 June 2024.
In our opinion, the Remuneration Report of Jindalee Lithium Limited, for the year ended 30 June 2024,
complies with section 300A of the Corporations Act 2001.
Responsibilities
The directors of the Company are responsible for the preparation and presentation of the
Remuneration Report in accordance with section 300A of the Corporations Act 2001. Our responsibility
is to express an opinion on the Remuneration Report, based on our audit conducted in accordance with
Australian Auditing Standards.
BDO Audit Pty Ltd
Ashleigh Woodley
Director
Perth, 30 September 2024
ADDITIONAL INFORMATION
60
The following additional information not shown elsewhere in this report is required by the Australian
Securities Exchange in respect of listed public companies only. This information is current as at 25
September 2024.
Securities
Quotation has been granted for 71,154,590 ordinary shares of the Company on the Australian Stock
Exchange.
Quoted Securities
ASX Code
Number of
Holders
Security Description
Total Securities
JLL
1,950
Ordinary Fully Paid Shares
71,365,701
JLLO
282
Options expiring 30/06/2025 exercisable at $0.40
5,149,337
JLLOA
282
Options expiring 30/06/2027 exercisable at $0.60
5,149,337
Unquoted Securities
ASX Code
Number of
Holders
Security Description
Total Securities
JLLAE¹
1
Options expiring 30/06/2025 exercisable at $0.40
375,000
JLLAF¹
1
Options expiring 30/06/2025 exercisable at $0.50
1,000,000
JLLAR
1
Options expiring 27/02/2027 exercisable at $1.50
1,500,000
JLLAS
1
Options expiring 27/02/2027 exercisable at $2.50
1,500,000
JLLAT
1
Options expiring 27/02/2028 exercisable at $3.50
1,500,000
JLLAM
2
Options expiring 28/07/2025 exercisable at $3.78
1,500,000
JLLAG
1
Options expiring 10/07/2026 exercisable at $3.50
400,000
JLLAW²
2
Options expiring 28/08/2026 exercisable at $0.37
4,054,053
JLLAQ³
1
Options expiring 20/10/2026 exercisable at $2.10
500,000
JLLAO⁴
2
Options expiring 25/01/2026 exercisable at $5.00
125,000
JLLAP⁵
1
Options expiring 22/03/2026 exercisable at $3.63
500,000
JLLAN⁶
1
Options expiring 30/11/2025 exercisable at $3.32
500,000
JLLAV²
2
Convertible Notes expiring 12/07/2026
2,904,000
1.
Mrs K Wellman is the sole holder of options
2.
Mercer Street Global Opportunity Fund II LP holds 3,567,567 JLLAW options and 2,904,000 JLLAV
convertible notes
3.
CG Nominees (Australia) Pty Ltd is the sole holder of options
4.
Mr M Jones holds 37,500 JLLAO options and Mitzim Pty Ltd holds 87,500 JLLAO options
5.
Mr Paul Brown is the sole holder of options
6.
Beachswing Pty Ltd is the sole holder of options
Voting Rights
The voting rights attached to each class of security are as follows:
•
Ordinary fully paid shares – one vote per share held.
•
Options and performance rights – no voting rights are attached to options and performance rights.
ADDITIONAL INFORMATION
61
Distribution schedule
Analysis of number of equitable security holders by size of holding:
Ranges
Ordinary Shares
Options over Ordinary
Shares
Convertible Notes
(“Notes”)
No. of
Holders
% of Total
Issued
No. of
Holders
% of Total
Issued
No. of
Holders
% of Total
Issued
1 to 1,000
642
0.41%
65
0.12%
-
-
1,001 to 5,000
591
2.25%
85
0.95%
-
-
5,000 to 10,000
222
2.37%
40
1.28%
-
-
10,000 to 100,000
413
16.87%
74
12.08%
-
-
Over 100,000
82
78.11%
31
85.57%
2
100.00%
Totals
1,950
100.00%
295
100.00%
2
100.00%
Unmarketable Parcel
There are 914 Shareholders holding less than a marketable parcel of fully paid ordinary shares (a minimum
parcel is $500 being 2,174 shares using a market value of $0.23 per Share).
Substantial Shareholders
The Company has received the following notices of substantial holding:
•
Kale Capital Corporation Limited and associated entities in relation to 6,526,629 ordinary shares
Register of Securities
The register of securities is held at Automic Group (Automic) at Level 5, 191 St Georges Terrace
Perth WA 6000. Automic is contactable on +61 (2) 9698 5414.
Buyback
No on-market share buy-back is current.
Restricted Securities
There are no securities on issue under escrow.
Top 20 Shareholders
The names of the twenty largest shareholders (ASX Code: JLL) are listed below:
Rank
Name
Units
% of Units
1
LINDSAY DUDFIELD AND ASSOCIATED ENTITIES
17,389,932
24.37%
2
KALE CAPITAL CORPORATION LTD AND ASSOCIATED ENTITIES
6,526,629
9.15%
3
KEVREX PTY LTD
2,472,750
3.46%
4
ELMIX PTY LTD
2,223,926
3.12%
5
HSBC CUSTODY NOMINEES (GROUPED)
1,941,752
2.72%
6
PILLAGE INVESTMENT PTY LTD
1,900,000
2.66%
7
MERCER STREET GLOBAL OPPORTUNITY FUND II LP
1,770,100
2.48%
8
TBB NSW PTY LTD
1,553,442
2.18%
9
WINDSONG VALLEY PTY LTD
1,197,880
1.68%
10
MR THOMAS STEPHEN SANDERS & MRS HELEN SANDERS
1,171,704
1.64%
11
BNP PARIBAS NOMINEES (GROUPED)
1,138,803
1.60%
12
YANDAL INVESTMENTS PTY LTD
1,000,000
1.40%
13
AYERS ROCK HOLDINGS PTY LTD
971,250
1.36%
14
CITICORP NOMINEES PTY LIMITED
906,655
1.27%
15
FARR FAMILY SF PTY LTD
900,922
1.26%
16
JUSTIN JEROME MANNOLINI AND ASSOCIATED ENTITIES
834,166
1.17%
17
ERIC'S PTY LIMITED
805,141
1.13%
18
JOHN RODERICK BOYLE
705,169
0.99%
19
JOPAN MANAGEMENT PTY LTD
660,243
0.93%
20
MR PETER JOHN BUCKLEY
600,000
0.84%
Total
46,670,464
65.40%
ADDITIONAL INFORMATION
62
Tenements Schedule
* Tenements held by Jindalee’s wholly owned US subsidiary, HiTech Minerals Inc.
Project
Tenement ID
Location
Status
Interest
Held
McDermitt*
HTM 16-20, 24-35, 39-55, 59-77, 81-101, 105-
125, 130-149, 152-172, 176-195, 199-213, 217-
225, 231-235, 238-242, 258-260, 340-342, 348,
349, 355, 356, 362, 363, 369, 376-380, 387-
391, 398, 399, 420-445, 448-456, 460-469, 480-
493, 496, 497, 500-517, 532-585, 685-687. HTX
1-113, 116-442.
HTM 586-682.
Oregon, USA
Nevada, USA
Granted
100%
Clayton
North*
HTC 1-6, 12-18, 25-28.
Nevada, USA
Granted
100%
Sherlock
E47/4345
Western
Australia
Granted
20%