LAKE RESOURCES
Annual Report 2017
LAKE RESOURCES PROJECTS
Andean
Salar de
Uyuni
Bolivia
MAP AREA
Mendoza
BUENOS AIRES
1000km
Chile
Argentina
Salta
Catamarca
N
100km
Lake Resources Projects
Andean Lithium TriangleOlaroz / Cauchari LakeKachi LakePaso LakeOlaroz / Cauchari Orocobre, SQM/ Lithium AmericasCentenario Eramet, LPIHombre Muerto - FMC Diabillos – LithiumXAntofalla AlbemarleCatamarca Pegmatites Lake OptionSalar de Atacama SQM, Albemarle
Lake Resources NL
Lake Resources NL
Corporate Directory
Corporate Directory
30 June 2017
30 June 2017
Directors
Stuart Crow – Non-Executive Chairman
Steve Promnitz - Managing Director
Nicholas Lindsay - Non-Executive Director
Company Secretary
Andrew Bursill
Registered Office
Principal Place of Business
Suite 2, Level 10
70 Phillip Street
Sydney NSW 2000
Tel. +61 2 9299 9690
Fax. +61 2 9251 7455
Suite 2, Level 10
70 Phillip Street
Sydney, NSW 2000
Share Register
Auditors
Solicitors
Bankers
Link Market Services Limited
Level 12
680 George Street
Sydney NSW 2000
Tel. +61 2 8280 7111
Fax. +61 2 9287 0303
Nexia Brisbane Audit Pty Ltd
Hopgood Ganim
National Australia Bank
Stock Exchange Listing
Lake Resources NL shares are listed on the Australian Securities Exchange
(ASX code: LKE)
Website
www.lakeresources.com.au
Lake Resources – Annual Report 2017 1
Lake Resources NL
Chairman’s Report
30 June 2017
Lake Resources NL
Chairman’s Report
30 June 2017
CHAIRMANS REPORT
Dear Shareholders,
On behalf of the Board of Directors it is our pleasure to present the 2017 annual report for Lake Resources
N.L. (“Lake Resources” or “Company”).
This past year has been a year of positives for Lake Resources as it has undertaken a new direction with a
focus on lithium, and a return to South America, particularly Argentina.
Your Company has been fortunate in securing four prime lithium projects, well located in the Lithium
Triangle of South America. The acquisition of Lith NRG Pty Ltd, announced in May 2016 and finalised in
November last year, has delivered a new future; and given its presence in South America, your Company
continues to consider other opportunities in the region.
Increased global awareness of Argentina as an investment destination has continued after a change in the
Argentine Government in December 2015, which was the catalyst for the consideration of a return to the
country by the board of Lake Resources, together with renewed market interest in lithium.
A massive and fundamental step change in lithium demand is underway driven by increasing demand in
electric vehicles, especially in East Asia and Europe, together with clean energy legislative changes globally.
The lithium ion battery technology has been accepted globally as the industry standard in electric vehicles,
with a wide uptake across many other sectors. This is supported by continuous and dramatic improvement
in recharge times and power, which together with reduced battery prices, has helped lithium batteries and
electric vehicles pass a key inflection point in uptake.
Your Company’s aim is to benefit from this uptake in lithium batteries by holding and developing prime
lithium properties and expanding contact with the downstream battery producers to assist in the
development of the projects.
Increasing global awareness of your Company and its four projects has been a key part of engaging with the
downstream sector. These efforts are attracting
industry
participants.
investors and
interest from
international
Enabling the development of the lithium projects is an experienced team on the ground, familiar with lithium
brine and hard rock projects, together with a capable local legal/commercial team to ensure success.
I would like to thank shareholders for their support, both past and new, and also thank the management and
staff for efforts over the past year. I welcome the new directors with skills well positioned for the new focus
on lithium and thank the past directors for their care of the Company and shareholders.
In the coming year, I look forward to being able to report significant activity on the ground across a number
of projects with some exciting developments. This should deliver a number of catalysts for a market
rerating as positive news flow continues.
Regards
Stu Crow
Chairman
2 Lake Resources – Annual Report 2017
Lake Resources NL
MANAGING DIRECTOR’S REPORT
Lake Resources NL
30 June 2017
Managing Director’s Report
30 June 2017
MANAGING DIRECTOR’S REPORT
Dear Shareholders,
Lake Resources has acquired and is advancing four prime lithium projects in the north west of Argentina,
which is part of an area where half the world’s lithium is produced and at the lowest operating costs. As
a result, the Company now holds one of the largest lithium property holdings on the ASX with
approximately 170,000 Ha selected prior to the recent heightened interest in lithium and Argentina.
Importantly, these areas are 100% owned which allows greater flexibility for development and avoids
expensive future payments to third parties that many other participants face in the sector. This includes
three (3) lithium brine projects in Jujuy and Catamarca provinces, which are located in an area where
there is substantial development and existing production by major lithium players. The Company also
holds an option, recently extended, over one large hard rock pegmatite project in Catamarca with
considerable potential for a series of discoveries. During the past year, all of these properties have been
advanced and consolidated, especially in Catamarca province, known for its mining history.
Drilling is about to commence over the exciting Kachi Lithium Brine Project in Catamarca, which displays
the potential for a major new discovery. Kachi is located over the salt lakes in the deepest part of a
large basin (over 80 km long). The lease holdings have been consolidated over a large area of more than
50,000 Ha. Surface sampling has revealed positive lithium results which will be expanded through the
drilling program and geophysics, which is anticipated to lead to an initial resource and a scoping study,
followed by a pre-feasibility study if results continue to be promising.
Lake Resources, and its Argentine subsidiary, Morena del Valle Minerals SA, has a focus on an inclusive
approach with local communities and tourism in the area, together with appropriate environmental
management. This approach together with positive lithium values has resulted in the Kachi Project being
selected by the Province of Catamarca to be accelerated, together with a select few energy and mining
projects in the province, to ensure appropriate development aligned with sustainable policies of the
government.
To this end, a Letter of Intent was signed with the provincial authorities to facilitate the project through
various permitting stages in exploration and development to production which bodes well for the
future. The agreement should enable a stream-lined approach as we move to further drill holes and
pump tests, environmental and community baseline studies and pilot plant.
The two lithium brine projects in Jujuy have progressed through key permitting stages and once access
is granted, should deliver significant rewards as the Olaroz/Cauchari applications appear to cover the
same aquifers that are already producing or being developed by other companies in the sector. In the
hard rock pegmatite project, further field sampling should enable the zeroing in on key lithium bearing
spodumene targets within the pegmatite belt, which extends over 150 km. It should result in a decision
being made on the option agreement over these areas.
It is the Company’s strategy to unlock deep value for shareholders within all of the project areas,
through positive drilling results. Continued discussions and agreements with potential offtake partners
would enable further value to be realised: large corporate deals have occurred nearby, which has
triggered substantial interest in the Company’s projects.
An experienced board with Spanish speaking directors familiar with the technical and legal aspects of
operating in South America, and a strong and expanding team in country are significant Company assets
Lake Resources – Annual Report 2017 3
Lake Resources NL
Lake Resources NL
MANAGING DIRECTOR’S REPORT
Managing Director’s Report
30 June 2017
30 June 2017
and a competitive advantage in progressing its lithium portfolio and in delivering ever increasing value
to shareholders.
The next key milestones will be drilling results, followed by a maiden resource, scoping study, further
approvals and increased access leading to major discoveries and a rerating of the Company’s shares. Each
of the four projects has the potential to becoming a company maker.
Regards
Steve Promnitz
Managing Director
4 Lake Resources – Annual Report 2017
Lake Resources NL
Directors' Report
30 June 2017
The directors present their report, together with the financial statements, on the consolidated entity (referred to hereafter as
the 'consolidated entity') consisting of Lake Resources NL (referred to hereafter as the 'company' or 'parent entity') and the
entities it controlled at the end of, or during, the year ended 30 June 2017.
DIRECTORS
The following persons were directors of Lake Resources NL during the whole of the financial year and up to the date of this
report, unless otherwise stated:
S. Crow (Non-Executive Chairman - appointed 14 November 2016)
S. Promnitz (Managing Director - appointed 14 November 2016)
N. Lindsay (Non-Executive Director - appointed 18 July 2017)
P.J. Gilchrist (resigned 18 July 2017)
R Johnston (resigned 14 November 2016)
J.G. Clavarino (resigned 14 November 2016)
PRINCIPAL ACTIVITIES
The principal activities of the entities within Lake Resources NL (Lake) are:
●
●
Exploration and development of lithium brine projects and lithium hard rock projects
Exploration for minerals.
During the year ended 30 June 2017, Lake completed the acquisition of unlisted company LithNRG Pty Ltd, that controls
two Argentine subsidiaries with lithium brine projects in Argentina, and entered into an option agreement with Petra Energy
SA, to be fully paid in LKE script, over a large block of mining leases and exploration applications over potential lithium
bearing pegmatites. Exploration commenced over these projects where access has been granted, further leases have
been added to consolidate ownership and other applications have been advanced towards gaining access.
DIVIDENDS
There were no dividends paid, recommended or declared during the current or previous financial year.
REVIEW OF RESULTS AND OPERATIONS
The loss for the consolidated entity after providing for income tax amounted to $1,170,745 (30 June 2016: $41,682).
Corporate
The Company has embarked this financial year on a new future focused on well positioned lithium brine projects and hard
rock (pegmatite) projects in Argentina with four separate projects, each with potential to be a substantial stand alone
development project, or colloquially, each “a company maker”. Lake holds one of the largest lease holdings of lithium brine
and hardrock projects of a listed entity on the ASX.
The Company completed a transaction on 14 November 2016 which acquired the unlisted company LithNRG Pty Ltd, with
well-located prime lithium brine projects in three large packages of tenement applications (over 90,000 Ha) around salt
lakes in North West Argentina. The transaction was announced on 25 May 2016 and approved by shareholders on 4
October 2016 regarding an agreement over a large lithium brine property portfolio that had been established over a ten-
month period, prior to the recent ‘rush’ by majors into Argentina driven by improved market support for lithium, proven
prospectivity in Argentina and a recently improved foreign investment climate.
The terms were detailed in the Notice of Annual General Meeting and Explanatory Statement released on 1 September
2016. Securities, both shares and options, were issued in stages as vendor consideration for the acquisition. 50 million
LKE shares, together with three tranches of performance rights (50 million in total) with attached options (25 million at
$0.05, 18 month’s expiry) were to vest upon completion of three milestones. 25 million performance rights were cancelled,
together with 12.5 million options, as one of the milestones was not reached. One remaining tranche of shares and options
remains to be issued upon completion of the last milestone.
Lake controls 100% the subsidiary LithNRG Pty Ltd with its Argentine subsidiaries, Minerales Australes SA and Morena del
Valle Minerals SA.
The Company has also entered into an option agreement Petra Energy SA, to be fully paid in LKE script, over a large block
of approximately 72,000 Ha of exploration leases and mining leases and applications over potential lithium bearing
pegmatites and pegmatite swarms. The transaction was announced on 1 March 2017 and the first tranche of 1,000,000
1
Lake Resources – Annual Report 2017 5
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Lake Resources NL
Directors' Report
30 June 2017
LKE shares was issued. The option agreement was for six months and has been extended under the same terms by 120
days to allow completion of the formation of the Argentine entity. The lithium pegmatites are part of a newly recognised
150km long belt of pegmatite swarms outcropping at relatively low altitudes (300-1500m) in Ancasti, Catamarca province,
which has good year-round access.
A committed placement of $0.5 million (25 million LKE shares at $0.02) was completed in November 2016 as part of the
transaction to acquire LithNRG Pty Ltd announced in May 2016 at a significant premium to the share price at the time and
approved by shareholders on 4 October 2016. A capital raising of $1.05 million (16 million LKE shares at $0.065) by way of
a private placement to sophisticated and professional investors was completed on 20 December 2016, with a further
capital raising of $1.2 million (22 million LKE shares at $0.05) with 12 million attached listed options at $0.10 (18 mth
expiry) completed on 27 February 2017. 2 million LKE shares and 7.35 million listed options at $0.10 were issued to
service providers, financial arrangers and intermediaries.
The Company had 227,493,026 shares on issue at 30 June 2017, with 19,350,000 listed options at $0.10 (expiry Aug
2018) and 31,250,000 unlisted options at $0.05 and 1,539,250 unlisted options at $0.10, with an option agreement which, if
exercised, would result in an issuance of 19,000,000 LKE shares.
Operations
Argentina
Kachi Lithium Brine Project - Catamarca Province, Argentina
An exploration programme commenced over a large area (approximately 52,000 Ha) of lithium brine mining leases and
lease applications in the Kachi Lithium Brine Project in Catamarca province, Argentina. Leases are being progressively
granted and are held by the Argentine subsidiary Morena del Valle Minerals SA. An additional 3,900 hectares of leases
have been acquired contiguous to the area of active exploration, together with new applications during the year to
consolidate the project’s lease holdings.
The Kachi Lithium Brine Project is located in Catamarca province, approximately 100km south of FMC’s Hombre Muerto
Lithium brine operation in production. The Project overlies an area of leases and lease applications centred around a salt
lake within a large basin almost 100km long. This area has been recently recognised as a potential lithium brine bearing
basin.
The initial surface auger sampling programme over the salt lakes within the current Lake leases. Initial results were
encouraging, released in February 2017 up to 322 mg/L Lithium. An all year-round exploration camp was established
together with access and provision of increased fresh water and power. Further reports have been submitted which
included environmental management and local community engagement.
It is anticipated that drilling and geophysics will commence soon to advance the project through a scoping study and an
initial resource.
Olaroz/Cauchari & Paso Lithium Brine Projects - Jujuy Province, Argentina
Lake holds mining lease applications over almost 45,000 hectares in two areas in Jujuy Province, in NW Argentina.
The leases cover areas in and around Orocobre Limited, currently in production, and SQM / Lithium Americas Corporation,
currently developing a project towards production in the Cauchari/Olaroz basin in Jujuy Province, Argentina. Although data
is limited within the properties, the tenements may cover potential extensions to the Cauchari/Olaroz projects with potential
extensions to aquifers.
The initial applications from March 2016 were advanced in May 2017 after a successful appeal process. Most of the areas
were reapplied for in November after a moratorium was lifted to maintain the company’s rights to the areas. The application
process is anticipated to progress in 2017/18. Leases/applications are held 100% through Lake’s local subsidiaries.
Exploration will commence as soon as access is available to the areas. Substantial ground geophysics and drilling has
been completed in the surrounding leases at Olaroz/Cauchari.
Significant corporate transactions continue in adjacent leases with the development of SQM/Lithium Americas
Olaroz/Cauchari project with an equity/debt investment over $300 million and Advantage Lithium’s equity transaction in
some of Orocobre’s leases. LSC Lithium has also raised over $60 million on a large lease package in similar areas as
Lake’s properties.
Catamarca Hardrock Pegmatite Project – Catamarca Province, Argentina
Lake holds an option over exploration leases and mining leases and applications over almost 72,000 hectares in a 150km
2
6 Lake Resources – Annual Report 2017
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Lake Resources NL
Directors' Report
30 June 2017
long belt of outcropping pegmatites with lithium potential as spodumene within Catamarca Province, in NW Argentina.
Initial results have been encouraging with potential for a substantial new lithium pegmatite target.
Pakistan Copper/Gold
Lake holds an interest in a copper-gold project, the Chagai Project, in Pakistan. The Chagai Project is situated in the
Tethyan magmatic arc, which extends from Turkey, through Iran into Pakistan and hosts a number of world-class copper
gold deposits including the Saindak copper-gold mine and the giant Reko Diq copper-gold deposits.
Colt Resources Middle East (CRME) and Aamir Resources Consultants, CMRE can earn a majority interest in the Chagai
project through exploration expenditure of US$1.9 million by 2018. Lake Resources 27.5% interest in Chagai Resources
(Pvt) Limited, a Pakistan incorporated operating entity, is held through a wholly owned Pakistan incorporated subsidiary,
Lake Mining Pakistan (Pvt) Limited. During the half year under review, no significant exploration activities were undertaken
by Chagai Resources pending approval of government security clearances for key personnel. The agreement was
extended to allow for further exploration.
SIGNIFICANT CHANGES IN THE STATE OF AFFAIRS
On 14 November 2016, Lake announced it had completed the acquisition of 100% of LithNRG Pty Ltd and the mining
leases and applications over potential lithium brine projects in Argentina. Equity in Lake (shares and options) had been
issued in consideration together with future tranches on completion of certain milestones.
Equity was raised via private placement at completion ($0.5 million) and in December ($1.05 million) to assist the
exploration campaign in Argentina, retire debt in LithNRG Pty Ltd and for working capital requirements and corporate costs
associated with the transaction.
The configuration and skill sets of the board were adjusted to reflect the change in focus to lithium in South America.
There were no other significant changes in the state of affairs of the consolidated entity during the financial year.
MATTERS SUBSEQUENT TO THE END OF THE FINANCIAL YEAR
No matter or circumstance has arisen since 30 June 2017 that has significantly affected, or may significantly affect the
consolidated entity's operations, the results of those operations, or the consolidated entity's state of affairs in future
financial years.
LIKELY DEVELOPMENTS AND EXPECTED RESULTS OF OPERATIONS
Information on likely developments in the operations of the consolidated entity and the expected results of operations have
not been included in this report because the directors believe it would be likely to result in unreasonable prejudice to the
consolidated entity.
ENVIRONMENTAL REGULATION
The consolidated entity is not subject to any significant environmental regulation under Australian Commonwealth or State
law.
INFORMATION ON DIRECTORS
Name:
Title:
Experience and expertise:
Other current directorships:
Stuart Crow (appointed 14 November 2016)
Non-Executive Chairman
Mr Crow has global experience in financial services, corporate finance, investor
relations, international markets, salary packaging and stock broking. Stuart is
passionate about assisting emerging listed companies to attract investors and capital
and has owned and operated his own businesses.
TNG Limited (ASX: TNG), Todd River Resources Limited (ASX: TRT) and Ironridge
Resources Limited (AIM listed)
Former directorships (last 3 years): None
Interests in shares:
Interests in options:
Interests in rights:
1,597,100 Shares
937,500 Options
1,312,500 Performance Rights
3
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Lake Resources NL
Directors' report
30 June 2017
Name:
Title:
Experience and expertise:
Stephen Promnitz (appointed 14 November 2016)
Managing Director
Mr Promnitz has considerable technical and commercial experience in Argentina, a
geologist fluent in Spanish, and a history of exploring, funding and developing
projects. Mr Promnitz has previously been CEO and 2IC of mid-tier listed mineral
explorers and producers (Kingsgate Consolidated, Indochine Mining), in corporate
finance roles with investment banks (Citi, Westpac) and held technical, corporate and
management roles with major mining companies (Rio Tinto/CRA, Western Mining).
Other current directorships:
None
Former directorships (last 3 years): None
Interests in shares:
Interests in options:
Interests in rights:
6,255,078 Shares
3,753,048 Options
8,751,015 Performance Rights
Name:
Title:
Experience and expertise:
Dr Nick Lindsay (appointed 18 July 2017)
Non-Executive Director
Nick has over 25 years’ experience in Argentina, Chile and Peru in technical and
commercial roles in the resources sector with major and mid-tier companies, as well
as start-ups. Nick has an BSc (Hons) degree in Geology, a PhD in Metallurgy and
Materials Engineering as well as an MBA. A fluent Spanish speaker, he has
successfully taken companies in South America, such as Laguna Resources which
he led as Managing Director, from inception to listing, development and subsequent
acquisition. Mr Lindsay is currently CEO of Manuka Resources Ltd, an unlisted
company, having previously held the position of President – Chilean Operations for
Kingsgate Consolidated Ltd and is a member of the AusIMM and the AIG
None
Other current directorships:
Former directorships (last 3 years): None
None
Interests in shares:
None
Interests in options:
None
Interests in rights:
Name:
Title:
Qualifications:
Experience and expertise:
Peter J. Gilchrist (resigned 18 July 2017)
Executive Director
B.Eng(Civil), M.Eng Sc, MBA.
Over 30 years experience as an engineer in mining, construction and manufacturing
in Australia and USA. He is Executive Chairman of the Aquatec Maxcon Group, which
manufacture and install water treatment equipment for a wide range of customers in
the municipal, power and mining industries.
Other current directorships:
None
Former directorships (last 3 years): None
Interests in shares:
Interests in options:
Interests in rights:
21,104,048 Shares (as at date of resignation)
None (as at date of resignation)
None (as at date of resignation)
Name:
Title:
Qualifications:
Experience and expertise:
Ross Johnston (resigned 14 November 2016)
Independent Director
B.Com, FCA
Over 30 years experience as an accountant in public practice, having founded one of
the larger independently-owned accountancy practices in Queensland. Has long
experience in commercial and financial experience on various boards.
Other current directorships:
None
Former directorships (last 3 years): None
Interests in shares:
Interests in options:
Interests in rights:
4,000,000 Shares (as at date of resignation)
None (as at date of resignation)
None (as at date of resignation)
8 Lake Resources – Annual Report 2017
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Lake Resources NL
Directors' report
30 June 2017
Name:
Title:
Qualifications:
Experience and expertise:
James G. Clavarino (resigned 14 November 2016)
Executive Director
FRMIT (Geology) MAIMM, MMICA.
Mr Clavarino has worked as a mineral exploration geologist for over 35 years in
Australia and many parts of the world, with considerable experience as a director of
mineral exploration companies.
Other current directorships:
None
Former directorships (last 3 years): None
Interests in shares:
Interests in options:
Interests in rights:
3,661,400 (as at date of resignation)
None (as at date of resignation)
None (as at date of resignation)
'Other current directorships' quoted above are current directorships for listed entities only and excludes directorships of all
other types of entities, unless otherwise stated.
'Former directorships (last 3 years)' quoted above are directorships held in the last 3 years for listed entities only and
excludes directorships of all other types of entities, unless otherwise stated.
COMPANY SECRETARY
Andrew Bursill became Company Secretary on 14 November 2016. Mr Bursill currently holds the position of Company
Secretary for a number of publicly listed companies and has experience in accounting, administration, capital raisings and
ASX compliance and regulatory requirements. The company secretary was Peter Gilchrist until 14 November 2016.
MEETINGS OF DIRECTORS
The number of meetings of the company's Board of Directors ('the Board') held during the year ended 30 June 2017, and
the number of meetings attended by each director were:
S. Crow
S. Promnitz
P.J. Gilchrist
R. Johnston
J.G. Clavarino
Full Board
Attended
Held
6
6
2
2
2
6
6
8
2
2
Held: represents the number of meetings held during the time the director held office.
REMUNERATION REPORT (AUDITED)
The remuneration report details the key management personnel remuneration arrangements for the consolidated entity, in
accordance with the requirements of the Corporations Act 2001 and its Regulations.
Key management personnel are those persons having authority and responsibility for planning, directing and controlling the
activities of the entity, directly or indirectly, including all directors.
The board policy is to remunerate directors at market rates for time, commitment, responsibilities and overall performance.
The board determines payments to the directors and reviews their remuneration annually, based on market practice, duties
and accountability. Independent external advice is sought when required. The maximum aggregate amount of directors’
fees that can be paid is subject to approval by shareholders at the Annual General Meeting. Fees for non-executive
directors are not linked to the performance of the Group. However, to align directors’ interests with shareholder interests,
the directors are encouraged to hold shares in the Company. The Group did not utilise the services of remuneration
consultant for the year.
The remuneration report is set out under the following main headings:
●
●
●
●
●
●
Principles used to determine the nature and amount of remuneration
Details of remuneration
Service agreements
Share-based compensation
Additional information
Additional disclosures relating to key management personnel
5
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30 June 2017
Principles used to determine the nature and amount of remuneration
The objective of the consolidated entity's executive reward framework is to ensure reward for performance is competitive
and appropriate for the results delivered. The framework aligns executive reward with the achievement of strategic
objectives and the creation of value for shareholders, and it is considered to conform to the market best practice for the
delivery of reward. The Board of Directors ('the Board') ensures that executive reward satisfies the following key criteria for
good reward governance practices:
●
●
●
●
competitiveness and reasonableness
acceptability to shareholders
performance linkage / alignment of executive compensation
transparency
The Board is responsible for determining and reviewing remuneration arrangements for its directors and executives. The
performance of the consolidated entity depends on the quality of its directors and executives. The remuneration philosophy
is to attract, motivate and retain high performance and high quality personnel.
The reward framework is designed to align executive reward to shareholders' interests. The Board have considered that it
should seek to enhance shareholders' interests by:
●
●
having economic profit as a core component of plan design
focusing on sustained growth in shareholder wealth, consisting of dividends and growth in share price, and delivering
constant or increasing return on assets as well as focusing the executive on key non-financial drivers of value
attracting and retaining high calibre executives
●
Additionally, the reward framework should seek to enhance executives' interests by:
●
●
●
rewarding capability and experience
reflecting competitive reward for contribution to growth in shareholder wealth
providing a clear structure for earning rewards
In accordance with best practice corporate governance, the structure of non-executive director and executive director
remuneration is separate.
As the Group has no full time employees, contract services are engaged for executive directors (KMP's) who are
remunerated with cash consideration. For 2016, no remuneration has been paid as the Group restructured and
recapitalised.
Non-executive directors remuneration
Fees and payments to non-executive directors reflect the demands and responsibilities of their role. Non-executive
directors' fees and payments are reviewed annually by the Board. The Board may, from time to time, receive advice from
independent remuneration consultants to ensure non-executive directors' fees and payments are appropriate and in line
with the market.
Executive remuneration
The consolidated entity aims to reward executives based on their position and responsibility, with a level and mix of
remuneration which has both fixed and variable components.
The executive remuneration and reward framework has four components:
●
●
●
●
base pay and non-monetary benefits
short-term performance incentives
share-based payments
other remuneration such as superannuation and long service leave
The combination of these comprises the executive's total remuneration.
Fixed remuneration, consisting of base salary, superannuation and non-monetary benefits, are reviewed annually by the
Board of Directors based on individual and business unit performance, the overall performance of the consolidated entity
and comparable market remunerations.
Executives may receive their fixed remuneration in the form of cash or other fringe benefits (for example motor vehicle
benefits) where it does not create any additional costs to the consolidated entity and provides additional value to the
executive.
10 Lake Resources – Annual Report 2017
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Long Term Incentive (LTI) Plan
At the 2016 Annual General Meeting, the shareholders of the Company approved the Long Term Incentive (LTI) Plan. The
main purpose of the plan is to give incentives to eligible participants (or their nominee) to provide dedicated and ongoing
commitment and effort to the Company aligning the interest of both employees and shareholders and for the Company to
reward eligible employees for their effort. The LTI Plan contemplates the issue to eligible employees of performance rights
which may have milestones.
Under the Plan, the Company allocated 8.5 million performance rights to two Directors, Mr Steve Promnitz (7.5 million) and
Mr Stuart Crow (1 million). The performance shares were issued at nil consideration.
Mr Promnitz's performance shares vest on the following performance criteria:
a) a third vest when initial exploration can commence, triggered by commencement of the first ground based
geophysical survey over a minimum of 10 tenement applications;
b) a third vest when initial drilling can commence, triggered by the commencement of the first drill hole over a
minimum of 10 of the tenement applications;
c) a third vest when the Company's market capitalisation reaches $22.287 million calculated based on the
volume weighted average market price (VWAP) on the ASX over 20 day trading period multiplied by the number of
shares on issue at the time.
Mr Crow's performance shares vest when the Company's market capitalisation reaches $22.287 million calculated based
on the volume weighted average market price (VWAP) on the ASX over 20 day trading period multiplied by the number of
shares on issue at the time.
Voting and comments made at the company's 2016 Annual General Meeting ('AGM')
At the 2016 AGM, in excess of 75% of the votes received supported the adoption of the remuneration report for the year
ended 30 June 2016. The company did not receive any specific feedback at the AGM regarding its remuneration practices.
Details of remuneration
Amounts of remuneration
Details of the remuneration of key management personnel of the consolidated entity are set out in the following tables.
The key management personnel of the consolidated entity consisted of the following directors of Lake Resources NL:
●
●
●
●
●
S. Crow (Non-Executive Chairman - appointed 14 November 2016)
S. Promnitz (Managing Director - appointed 14 November 2016)
P.J. Gilchrist
R Johnston (resigned 14 November 2016)
J.G. Clavarino (resigned 14 November 2016)
And the following person:
●
Andrew Bursill - Company Secretary
Changes since the end of the reporting period:
On 18 July 2017, Dr Nick Lindsay was appointed as a Non-Executive Director of the Company.
On 18 July 2017, Peter Gilchrist resigned as a Director of the Company.
7
Lake Resources – Annual Report 2017 11
Lake Resources NLDirectors’ Report30 June 2017
Lake Resources NL
Directors' report
30 June 2017
2017
Non-Executive Directors:
S. Crow (1)
R. Johnson (2)
Executive Directors:
S. Promnitz (1)
P.J. Gilchrist
J.G. Clavarino (2)
Other Key Management
Personnel:
Andrew Bursill (1)
Short-term benefits
Post-
employment
benefits
Long-term benefits
Cash salary
and fees
$
Cash
bonus
$
14,000
-
153,590
-
-
-
167,590
Non-
Super-
monetary(3) annuation
$
$
-
-
-
-
4,430
-
-
13,077
-
-
-
4,430
-
13,077
-
-
-
-
-
-
-
Long
service
leave
$
Performance
Rights
$
Total
$
-
-
-
-
-
-
-
55,000(4)
-
69,000
-
412,500(4)
-
-
583,597
-
-
-
467,500
-
652,597
(1)
(2)
(3)
(4)
appointed 14 November 2016
resigned 14 November 2016
includes provision for annual leave
The performance shares for Mr Promnitz and Mr Crow were valued at $467,500 based on the closing share price of $0.055 when the performance shares were granted 14 Nov 16.
During the year, the consolidated entity paid Salaris Consulting Pty Ltd, a company associated with Stuart Crow (Director),
consultancy services relating to capital raising. Total fees paid (excluding GST) to Salaris Consulting Pty Ltd for the
consultancy services was $28,160 (2016: nil).
During the year, the Company engaged Franks & Associates Pty Ltd, a company associated with Andrew Bursill (Company
Secretary) to provide company secretarial and accounting services. Total fees paid (excluding GST) to Franks &
Associates Pty Ltd during the year was $81,890 (2016: nil).
The Company engaged Trenlin Pty Ltd, a company which Mr PJ Gilchrist is a shareholder to provide professional services
to the Group.
The Company engaged Argent Resources Pty Ltd, a company which Mr Clavarino is a director, to provide exploration
services to the Group.
These services are provided in normal commercial terms and conditions and no more favourable that those provided by
other parties with the exception of Trenlin Pty Ltd and Argent Resources Pty Ltd in which the services were provided for nil
consideration.
12 Lake Resources – Annual Report 2017
8
Lake Resources NLDirectors’ Report30 June 2017
-
-
-
-
-
-
-
-
-
-
Lake Resources NL
Directors' report
30 June 2017
2016
Non-Executive Directors:
R. Johnston
Executive Directors:
J. Clavarino
P. Gilchrist
Short-term benefits
Post-
employment
benefits
Long-term
benefits
Share-
based
payments
Cash salary
and fees
$
Cash
bonus
$
Non-
Super-
monetary annuation
$
$
Long
service
leave
$
Equity-
settled
$
Total
$
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
The proportion of remuneration linked to performance and the fixed proportion are as follows:
Name
Non-Executive Directors:
S. Crow
R.Johnston
Executive Directors:
S. Promnitz
J.G. Clavarino
P.J. Gilchrist
Other Key Management
Personnel:
Andrew Bursill
Fixed remuneration
2016
2017
At risk - STI
At risk - LTI
2017
2016
2017
2016
20%
-
29%
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
80%
-
71%
-
-
-
Service agreements
Remuneration and other terms of employment for key management personnel are formalised in service agreements.
Details of these agreements are as follows:
Name:
Title:
Agreement commenced:
Term of agreement:
S. Promnitz
Managing Director
14 November 2016
Initial salary of $250,000 per annum (including superannuation), with a review point
scheduled
to satisfactory
performance. Incentive of 7,500,000 performance rights as approved by shareholders
on 4 October 2016. If notice given by Company, the Company shall be liable to pay
full compensation for a six month notice period. If notice is given by Mr Promnitz, the
notice period is three months. Company shall have the right to choose whether Mr.
Promnitz work his notice or paid in lieu of notice.
from commencement date, subject
for 12 months
Key management personnel have no entitlement to termination payments in the event of removal for misconduct.
The service conditions of the executive directors, Mr Peter Gilchrist and Mr Jim Clavarino were not formalised in contracts.
Mr Jim Clavarino resigned on 14 November 2016.
9
Lake Resources – Annual Report 2017 13
Lake Resources NLDirectors’ Report30 June 2017
Lake Resources NL
Directors' report
30 June 2017
Non-executive director arrangements
Non-executive directors receive a board fee. The board fee for each non-executive director is currently at $25,000 per
annum.
All non-executive directors enter into an 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.
Share-based compensation
Issue of shares
There were no shares issued to directors and other key management personnel as part of compensation during the year
ended 30 June 2017.
Options
There were no options over ordinary shares issued to directors and other key management personnel as part of
compensation that were outstanding as at 30 June 2017.
There were no options over ordinary shares granted to or vested by directors and other key management personnel as part
of compensation during the year ended 30 June 2017.
Performance rights
The terms and conditions of each grant of performance rights over ordinary shares affecting remuneration of directors and
other key management personnel in this financial year or future reporting years are as follows:
Grant date
14 November 2016
14 November 2016
14 November 2016
Vesting date and
exercisable date
See Tranche 1 below *
See Tranche 2 below **
See Tranche 3 below ***
Expiry date
14 November 2021
14 November 2021
14 November 2021
Fair value
per right
at grant date
$0.055
$0.055
$0.055
*
**
Tranche 1 - Vest when initial exploration can commence, triggered by commencement of the first ground based geophysical survey over a minimum of 10 tenement applications
Tranche 2 - Vest when initial drilling can commence, triggered by the commencement of the first drill hole over a minimum of 10 of the tenement applications
***
Tranche 3 - Vest when the Company's market capitalisation reaches $22.287 million calculated based on the volume weighted average market price (VWAP) on the ASX over 20 day
trading period multiplied by the number shares on issue at the time.
Name
Stuart Crow
Steve Promnitz
Steve Promnitz
Steve Promnitz
Number of
rights
granted
Grant date
1,000,000 14 November 2016
2,500,000 14 November 2016
2,500,000 14 November 2016
2,500,000 14 November 2016
Vesting date and
exercisable date
See Tranche 3 ***
See Tranche 1 *
See Tranche 2 *
See Tranche 3 *
Expiry date
14 November 2021
14 November 2021
14 November 2021
14 November 2021
Fair value
per right
at grant date
$0.055
$0.055
$0.055
$0.055
*
**
Tranche 1 - Vest when initial exploration can commence, triggered by commencement of the first ground based geophysical survey over a minimum of 10 tenement applications
Tranche 2 - Vest when initial drilling can commence, triggered by the commencement of the first drill hole over a minimum of 10 of the tenement applications
***
Tranche 3 - Vest when the Company's market capitalisation reaches $22.287 million calculated based on the volume weighted average market price (VWAP) on the ASX over 20 day
trading period multiplied by the number shares on issue at the time.
Performance rights granted carry no dividend or voting rights.
The fair value of the rights are based on the market value of the shares as at the date of grant.
14 Lake Resources – Annual Report 2017
10
Lake Resources NLDirectors’ Report30 June 2017
Lake Resources NL
Directors' report
30 June 2017
The number of performance rights over ordinary shares granted to and vested by directors and other key management
personnel as part of compensation during the year ended 30 June 2017 are set out below:
Name
Stuart Crow
Steve Promnitz
Number of
Number of
Number of
Number of
rights
granted
rights
granted
rights
vested
rights
vested
during the
during the
during the
during the
year
2017
year
2016
year
2017
year
2016
1,000,000
7,500,000
-
-
-
-
-
-
Values of performance rights over ordinary shares granted, vested and lapsed for directors and other key management
personnel as part of compensation during the year ended 30 June 2017 are set out below:
Name
Stuart Crow
Steve Promnitz
Value of
rights
granted
Value of
rights
vested
Value of
rights
lapsed
during the
during the
during the
year
$
year
$
year
$
Remuneration
consisting of
rights
for the
year
%
55,000
412,500
-
-
-
-
80%
71%
Additional information
The earnings of the consolidated entity for the five years to 30 June 2017 are summarised below:
2013
$
2014
$
2015
$
2016
$
2017
$
Revenue
Net Loss
Net Assets
Share Price at Year End (cent)
11,361
6,525,567
77,696
1
-
135,093
(57,397)
1
-
88,420
109,713
1
-
41,682
68,031
1
-
1,170,745
3,228,950
3
Additional disclosures relating to key management personnel
Shareholding
The number of shares in the company held during the financial year by each director and other members of key
management personnel of the consolidated entity, including their personally related parties, is set out below:
Balance at Received
as part of
the start of
the year
remuneration Additions
Ordinary shares
S. Crow (appointed 14 November 2016) **
S. Promnitz (appointed 14 November 2016) **
R Johnston (resigned 14 November 2016)
J.G. Clavarino (resigned 14 November 2016)
A. Bursill (appointed 14 November 2016) **
1,284,600
5,004,062
4,000,000
3,661,400
-
13,950,062
-
-
-
-
-
-
*
**
Other represents conversion of performance rights, and the balance of shares at date of resignation.
Represents balance at date of appointment
Disposals/
Other *
Balance at
the end of
the year
-
-
-
-
-
-
312,500
1,251,016
(4,000,000)
(3,661,400)
-
(6,097,884)
1,597,100
6,255,078
-
-
-
7,852,178
Messrs Gilchrist and Johnston have an interest in 13,190,758 shares held by 202 Ltd, and 5,122,560 shares held by
Kemkay Pty Ltd, a subsidiary of 202 Ltd, entities of which they are both Directors and Mr Johnston is a shareholder.
11
Lake Resources – Annual Report 2017 15
Lake Resources NLDirectors’ Report30 June 2017
Lake Resources NL
Directors' report
30 June 2017
Mr Gilchrist has an interest, through a close family member, in 2,790,730 shares in the company.
Mr Ross Johnston is a Director and substantial shareholder of Bushfly Air Charter Pty Ltd, a company which held
4,000,000 shares in the Company at the time of Mr Johnston’s resignation.
Mr Clavarino is a director and shareholder of Lake Gold Pty Ltd, a company which holds 400,000 shares in the company.
Option holding
The number of options over ordinary shares in the company held during the financial year by each director and other
members of key management personnel of the consolidated entity, including their personally related parties, is set out
below:
Options over ordinary shares
S. Crow (appointed 14 November 2016) *
S. Promnitz (appointed 14 November 2016) *
*
Represents balance at date of appointment
Balance at
the start of
the year
Granted
Exercised
Expired/
forfeited/
other
Balance at
the end of
the year
1,250,000
5,004,064
6,254,064
-
-
-
-
-
-
(312,500)
(1,251,016)
(1,563,516)
937,500
3,753,048
4,690,548
No other directors and key management personnel holds option in the company,
Performance rights holding
The number of performance rights over ordinary shares in the company held during the financial year by each director and
other members of key management personnel of the consolidated entity, including their personally related parties, is set
out below:
Performance rights over ordinary shares
S. Crow (appointed 14 November 2016) *
S. Promnitz (appointed 14 November 2016) *
*
Represents balance at date of appointment
Balance at
the start of Granted
Converted to
Expired/
forfeited/
Balance at
the end of
the year
as
remuneration
shares
other
the year
1,250,000
5,004,062
6,254,062
1,000,000
7,500,000
8,500,000
(312,500)
(2,502,031)
(2,814,531)
1,312,500
(625,000)
(1,251,016)
8,751,015
(1,876,016) 10,063,515
No other directors and key management personnel holds performance rights in the company,
There have been no other transactions involving equity instruments apart from those described in the tables relating to
options, right and shareholdings
This concludes the remuneration report, which has been audited.
16 Lake Resources – Annual Report 2017
12
Lake Resources NLDirectors’ Report30 June 2017
Lake Resources NL
Directors' report
30 June 2017
SHARES UNDER OPTION
Unissued ordinary shares of Lake Resources NL under option at the date of this report are as follows:
Grant date
Expiry date
14 November 2016
14 November 2016
14 November 2016
21 December 2016
27 February 2017
4 April 2018
30 November 2018
See below *
14 June 2018
27 August 2018
Exercise
price
Number
under option
$0.05 37,500,000
6,250,000
$0.05
6,250,000
$0.05
$0.10
1,539,250
$0.10 19,350,000
70,889,250
*
Expiry Date is 18 months after the satisfaction of the condition – requirement of approval for exploration for 50% of Jujuy tenement applications. These options relate to the
acquisition of LithNRG.
No person entitled to exercise the options had or has any right by virtue of the option to participate in any share issue of
the company or of any other body corporate.
SHARES UNDER PERFORMANCE RIGHTS
Unissued ordinary shares of Lake Resources NL under performance rights at the date of this report are as follows:
Grant date
14 November 2016
14 November 2016
Expiry date
4 October 2021*
14 November 2021
Exercise
Number
price
under rights
$0.00 12,500,000
8,500,000
$0.00
21,000,000
*
These performance rights relate to the acquisition of LithNRG – requirement of approval for exploration for 50% of Jujuy tenement applications.
No person entitled to exercise the performance rights had or has any right by virtue of the performance right to participate
in any share issue of the company or of any other body corporate.
SHARES ISSUED ON THE EXERCISE OF OPTIONS
There were no ordinary shares of Lake Resources NL issued on the exercise of options during the year ended 30 June
2017 and up to the date of this report.
SHARES ISSUED ON THE CONVERSION OF PERFORMANCE RIGHTS
The following ordinary shares of Lake Resources NL were issued during the year ended 30 June 2017 and up to the date
of this report on the conversion of performance rights granted:
Date performance rights granted
14 November 2016
Number of
shares issued
12,500,000
INDEMNITY AND INSURANCE OF OFFICERS
The company has indemnified the directors and executives of the company for costs incurred, in their capacity as a director
or executive, for which they may be held personally liable, except where there is a lack of good faith.
During the financial year, the company paid a premium in respect of a contract to insure the directors and executives of the
company against a liability to the extent permitted by the Corporations Act 2001. The contract of insurance prohibits
disclosure of the nature of the liability and the amount of the premium.
13
Lake Resources – Annual Report 2017 17
Lake Resources NLDirectors’ Report30 June 2017
Lake Resources NL
Directors' report
30 June 2017
INDEMNITY AND INSURANCE OF AUDITOR
The company has not, during or since the end of the financial year, indemnified or agreed to indemnify the auditor of the
company or any related entity against a liability incurred by the auditor.
During the financial year, the company has not paid a premium in respect of a contract to insure the auditor of the company
or any related entity.
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.
NON-AUDIT SERVICES
There were no non-audit services provided during the financial year by the auditor.
OFFICERS OF THE COMPANY WHO ARE FORMER PARTNERS OF NEXIA BRISBANE AUDIT PTY LTD
There are no officers of the company who are former partners of Nexia Brisbane Audit Pty Ltd.
AUDITOR'S INDEPENDENCE DECLARATION
A copy of the auditor's independence declaration as required under section 307C of the Corporations Act 2001 is set out
immediately after this directors' report.
AUDITOR
Nexia Brisbane Audit Pty Ltd continues in office in accordance with section 327 of the Corporations Act 2001.
This report is made in accordance with a resolution of directors, pursuant to section 298(2)(a) of the Corporations Act
2001.
On behalf of the directors
___________________________
S. Promnitz
Managing Director
29 September 2017
18 Lake Resources – Annual Report 2017
14
Lake Resources NLDirectors’ Report30 June 2017
Lake Resources NL
Auditor’s independence declaration
30 June 2017
Lake Resources NL
Auditor's independence declaration
15
Lake Resources – Annual Report 2017 19
Lake Resources NL
Contents
Lake Resources NL
30 June 2017
Contents
30 June 2017
Statement of profit or loss and other comprehensive income
Statement of financial position
Statement of changes in equity
Statement of cash flows
Notes to the financial statements
Directors' declaration
Independent auditor's report to the members of Lake Resources NL
Shareholder information
General information
21
22
23
24
25
48
49
54
The financial statements cover Lake Resources NL as a consolidated entity consisting of Lake Resources NL and the
entities it controlled at the end of, or during, the year. The financial statements are presented in Australian dollars, which is
Lake Resources NL's functional and presentation currency.
Lake Resources NL is a listed public company limited by shares, incorporated and domiciled in Australia. Its registered
office and principal place of business is:
Suite 2, Level 10, 70 Phillip Street
SYDNEY NSW 2000
A description of the nature of the consolidated entity's operations and its principal activities are included in the directors'
report, which is not part of the financial statements.
The financial statements were authorised for issue, in accordance with a resolution of directors, on 29 September 2017.
The directors have the power to amend and reissue the financial statements.
Corporate Governance Statement
The Company's Corporate Governance Statement can be found on the company's website: www.lakeresources.com.au
20 Lake Resources – Annual Report 2017
Lake Resources NL
Statement of profit or loss and other comprehensive income
Lake Resources NL
For the year ended 30 June 2017
Statement of profit or loss and other comprehensive income
For the year ended 30 June 2017
Expenses
Exploration expenditure expensed / written back
Administrative expenses
Corporate expenses
Employee benefit expenses
Employee performance incentive expense
Consultancy and legal costs
Loss before income tax expense
Income tax expense
Note
Consolidated
2017
$
2016
$
-
(25,210)
(323,245)
(185,097)
(467,500)
(169,693)
12,017
(16,241)
(37,458)
-
-
-
(1,170,745)
(41,682)
5
-
-
Loss after income tax expense for the year attributable to the owners of Lake
Resources NL
13
(1,170,745)
(41,682)
Other comprehensive income for the year, net of tax
-
-
Total comprehensive income for the year attributable to the owners of Lake
Resources NL
Basic earnings per share
Diluted earnings per share
(1,170,745)
(41,682)
Cents
Cents
24
24
(0.72)
(0.72)
(0.04)
(0.04)
The above statement of profit or loss and other comprehensive income should be read in conjunction with the
accompanying notes
Lake Resources – Annual Report 2017 21
Lake Resources NL
Statement of financial position
Lake Resources NL
30 June 2017
Statement of financial position
As at 30 June 2017
Assets
Current assets
Cash and cash equivalents
Trade and other receivables
Other current assets
Total current assets
Non-current assets
Investments accounted for using the equity method
Exploration and evaluation
Total non-current assets
Total assets
Liabilities
Current liabilities
Trade and other payables
Total current liabilities
Total liabilities
Net assets
Equity
Issued capital
Reserves
Accumulated losses
Total equity
Note
Consolidated
2017
$
2016
$
6
7
8
9
1,396,825
34
13,292
1,410,151
35
1,887,866
1,887,901
74,210
-
1,070
75,280
35
-
35
3,298,052
75,315
10
69,102
69,102
7,284
7,284
69,102
7,284
3,228,950
68,031
11
12
13
12,346,866
936,260
(10,054,176)
8,946,465
4,997
(8,883,431)
3,228,950
68,031
The above statement of financial position should be read in conjunction with the accompanying notes
22 Lake Resources – Annual Report 2017
Lake Resources NL
Statement of changes in equity
Lake Resources NL
30 June 2017
Statement of changes in equity
For the year ended 30 June 2017
Consolidated
Balance at 1 July 2015
Issued
capital
$
Retained
Reserves
$
profits
$
Total equity
$
8,946,465
4,997
(8,841,749)
109,713
Loss after income tax expense for the year
Other comprehensive income for the year, net of tax
Total comprehensive income for the year
-
-
-
-
-
-
(41,682)
-
(41,682)
-
(41,682)
(41,682)
Balance at 30 June 2016
8,946,465
4,997
(8,883,431)
68,031
Consolidated
Balance at 1 July 2016
Loss after income tax expense for the year
Other comprehensive income for the year, net of tax
Total comprehensive income for the year
Transactions with owners in their capacity as owners:
Contributions of equity, net of transaction costs (note 11)
Share-based payment - options
Share-based payment - performance shares
Transfer to share capital
Issued
capital
$
Retained
Reserves
$
profits
$
Total equity
$
8,946,465
4,997
(8,883,431)
68,031
-
-
-
-
-
-
(1,170,745)
-
(1,170,745)
-
(1,170,745)
(1,170,745)
3,262,901
-
-
137,500
-
51,263
1,017,500
(137,500)
-
-
-
-
3,262,901
51,263
1,017,500
-
Balance at 30 June 2017
12,346,866
936,260
(10,054,176)
3,228,950
The above statement of changes in equity should be read in conjunction with the accompanying notes
Lake Resources – Annual Report 2017 23
Lake Resources NL
Statement of cash flows
Lake Resources NL
30 June 2017
Statement of cash flows
For the year ended 30 June 2017
Cash flows from operating activities
Payments to suppliers
Note
Consolidated
2017
$
2016
$
(646,044)
(56,012)
Net cash used in operating activities
23
(646,044)
(56,012)
Cash flows from investing activities
Net of cash acquired on acquisition of subsidiaries
Payments for exploration and evaluation
Net cash used in investing activities
Cash flows from financing activities
Proceeds from issue of shares
Share issue transaction costs
Repayment of borrowings
Net cash from financing activities
20
11
2,535
(478,639)
(476,104)
2,685,604
(84,841)
(156,000)
2,444,763
-
-
-
-
-
-
-
Net increase/(decrease) in cash and cash equivalents
Cash and cash equivalents at the beginning of the financial year
1,322,615
74,210
(56,012)
130,222
Cash and cash equivalents at the end of the financial year
6
1,396,825
74,210
The above statement of cash flows should be read in conjunction with the accompanying notes
24 Lake Resources – Annual Report 2017
Lake Resources NL
Notes to the financial statements
30 June 2017
Note 1. Significant accounting policies
The principal accounting policies adopted in the preparation of the financial statements are set out below. These policies
have been consistently applied to all the years presented, unless otherwise stated.
New or amended Accounting Standards and Interpretations adopted
The consolidated entity has adopted all of the new or amended Accounting Standards and Interpretations issued by the
Australian Accounting Standards Board ('AASB') that are mandatory for the current reporting period.
Any new or amended Accounting Standards or Interpretations that are not yet mandatory have not been early adopted.
Basis of preparation
These general purpose financial statements have been prepared in accordance with Australian Accounting Standards and
Interpretations issued by the Australian Accounting Standards Board ('AASB') and the Corporations Act 2001, as
appropriate for for-profit oriented entities. These financial statements also comply with International Financial Reporting
Standards as issued by the International Accounting Standards Board ('IASB').
Historical cost convention
The financial statements have been prepared under the historical cost convention, except for, where applicable, the
revaluation of available-for-sale financial assets, financial assets and liabilities at fair value through profit or loss,
investment properties, certain classes of property, plant and equipment and derivative financial instruments.
Critical accounting estimates
The preparation of the financial statements requires the use of certain critical accounting estimates. It also requires
management to exercise its judgement in the process of applying the consolidated entity's accounting policies. The areas
involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the
financial statements, are disclosed in note 2.
Going concern
The financial report has been prepared on a going concern basis, which assumes continuity of normal business activities
and the realisation of assets and the settlement of liabilities in the ordinary course of business. The consolidated entity has
incurred net losses after tax of $1,170,745 (2016: $41,682) and net cash outflows from operating and investing activities of
$1,122,148 (2016: $56,012) for the year ended 30 June 2017. For the reasons described below, conditions exist that
indicate there is a material uncertainty as to the consolidated entity’s ability to continue as a going concern.
The directors have prepared cash flow forecasts which indicate that the current cash resources will not be sufficient to fund
planned exploration expenditure, other principal activities and working capital requirements without the sale of non-core
assets and/or capital raising to fund its current operations through to 30 September 2018. The consolidated entity is
reviewing various capital raising opportunities to meet its capital requirements.
Based on the cash flow forecasts and achieving all or some funding, the directors are confident that the consolidated entity
will be able to continue as a going concern. The directors are confident in the consolidated entity’s ability to fund its
activities as mentioned based on past success in raising capital such as the capital raising completed in November 2016
and February 2017.
Should the consolidated entity be unable to raise capital or realise the sale of non-core assets, there is a material
uncertainty whether the consolidated entity will be able to continue as a going concern and therefore, whether it will be able
to realise its assets and discharge its liabilities in the normal course of business. The financial report does not include
adjustments relating to the recoverability and classification of recorded asset amounts, or to the amounts and classification
of liabilities that might be necessary should the consolidated entity not continue as a going concern.
Parent entity information
In accordance with the Corporations Act 2001, these financial statements present the results of the consolidated entity
only. Supplementary information about the parent entity is disclosed in note 19.
Principles of consolidation
The consolidated financial statements incorporate all of the assets, liabilities and results of the parent (Lake Resources NL)
and all of the subsidiaries. Subsidiaries are entities the parent controls. The parent controls an entity when it is exposed to,
or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its
power over the entity. A list of subsidiaries is provided in Note 21.
21
Lake Resources – Annual Report 2017 25
Lake Resources NLNotes to the financial statements30 June 2017
Lake Resources NL
Notes to the financial statements
30 June 2017
Note 1. Significant accounting policies (continued)
The assets, liabilities and results of all subsidiaries are fully consolidated into the financial statements of the group from the
date on which control is obtained by the group. The consolidation of a subsidiary is discontinued from the date that control
ceases. Intercompany transactions, balances and unrealised gains or losses on transactions between group entities are
fully eliminated on consolidation. Accounting policies of subsidiaries have been changed and adjustments made where
necessary to ensure uniformity of the accounting policies adopted by the group.
Operating segments
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 ('CODM'). The CODM is responsible for the
allocation of resources to operating segments and assessing their performance.
Foreign currency translation
The financial statements are presented in Australian dollars, which is Lake Resources NL's functional and presentation
currency.
Transaction and balances
Foreign currency transactions are translated into functional currency using the exchange rates prevailing at the date of the
transaction. Foreign currency monetary items are translated at the year-end exchange rate. Non-monetary items measured
at historical cost continue to be carried at the exchange rate at the date of the transaction. Non-monetary items measured
at fair value are reported at the exchange rate at the date when fair values were determined.
Exchange differences arising on the translation of monetary items are recognised in the statement of comprehensive
income, except where deferred in equity as a qualifying cash flow or net investment hedge.
Exchange differences arising on the translation of non-monetary items are recognised directly in equity to the extent that
the gain or loss is directly recognised in equity, otherwise the exchange difference is recognised in the statement of
comprehensive.
Foreign operations
The assets and liabilities of foreign operations are translated into Australian dollars using the exchange rates at the
reporting date. The revenues and expenses of foreign operations are translated into Australian dollars using the average
exchange rates, which approximate the rates at the dates of the transactions, for the period. All resulting foreign exchange
differences are recognised in other comprehensive income through the foreign currency reserve in equity.
The foreign currency reserve is recognised in profit or loss when the foreign operation or net investment is disposed of.
Financial Instruments
Initial recognition and measurement
Financial assets and financial liabilities are recognised when the entity becomes a party to the contractual provisions of the
instrument. For financial assets, this is equivalent to the date that the company commits itself to either the purchase or sale
of the asset (ie trade date accounting is adopted).
Financial instruments are initially measured at fair value plus transactions costs, except where the instrument is classified
"at fair value through profit or loss", in which case transaction costs are expensed to profit and loss immediately.
26 Lake Resources – Annual Report 2017
22
Lake Resources NLNotes to the financial statements30 June 2017
Lake Resources NL
Notes to the financial statements
30 June 2017
Note 1. Significant accounting policies (continued)
Classification and subsequent measurement
Financial instruments are subsequently measured at fair value, amortised costs using the effective interest rate method, or
cost.
Amortised cost is calculated as the amount at which the financial asset or financial liability is measured at initial recognition
less principal repayments and any reduction for impairment, and adjusted for any cumulative amortisation of the difference
between the initial amount and the maturity amount calculated using the effective interest rate method.
The effective interest rate method is used to allocate interest income or interest expense over the relevant period and is
equivalent to the rate that discounts estimated future cash payments or receipts (including fees, transaction costs and
other premiums or discounts) over the expected life (or when this cannot be reliably predicted, the contractual term) of the
financial instrument to the net carrying amount of the financial asset or financial liability. Revisions to expected future cash
flows will necessitate an adjustment to the carrying amount with a consequential recognition of an income or expense item
in profit or loss.
(i) Loans and receivables
Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an
active market and are subsequently measured at amortised cost. Gains or losses are recognised in profit or loss through
the amortisation process and when the financial asset is derecognised.
(ii) Financial liabilities
Non-derivative financial liabilities are subsequently measured at amortised cost. Gains or losses are recognised in profit or
loss through the amortisation process and when the financial liability is derecognised.
Impairment
A financial asset (or a group of financial assets) is deemed to be impaired if, and only if, there is objective evidence of
impairment as a result of one or more events (a "loss event") having occurred, which has an impact on the estimated future
cash flows of the financial asset(s).
For financial assets carried at amortised cost (including loans and receivables), a separate allowance account is used to
reduce the carrying amount of financial assets impaired by credit losses. After having taken all possible measures of
recovery, if management establishes that the carrying amount cannot be recovered by any means, at that point the written-
off amounts are charged to the allowance account or the carrying amount of impaired financial assets is reduced directly if
no impairment amount was previously recognised in the allowance account.
When the terms of financial assets that would otherwise have been past due or impaired have been renegotiated, the
company recognises the impairment for such financial assets by taking into account the original terms as if the terms have
not been renegotiated so the loss events that have occurred are duly considered.
Derecognition
Financial assets are derecognised where the contractual rights to receipt of cash flows expire or the asset is transferred to
another party whereby the entity no longer has any significant continuing involvement in the risks and benefits associated
with the asset. Financial liabilities are derecognised where the related obligations are either discharged, cancelled or
expire. The difference between the carrying value of the financial liability extinguished or transferred to another party and
the fair value of consideration paid, including the transfer of non-cash assets or liabilities assumed is recognised in the
profit or loss.
23
Lake Resources – Annual Report 2017 27
Lake Resources NLNotes to the financial statements30 June 2017
Lake Resources NL
Notes to the financial statements
30 June 2017
Note 1. Significant accounting policies (continued)
Income tax
The income tax expense (income) for the year comprises current income tax expense (income) and deferred tax expense
(income).
Current income tax expense charged to the profit or loss is the tax payable on taxable income. Current tax
liabilities/(assets) are measured at the amounts expected to be paid to/(recovered from) the relevant tax authority.
Deferred income tax expense reflects movements in deferred tax asset and deferred tax liability balances during the year
as well unused tax losses.
Current and deferred income tax expense (income) is charged or credited outside profit or loss when the tax relates to
items that are recognised outside profit or loss.
Deferred tax assets and liabilities are calculated at the rates that are expected to apply to the period when the asset is
realised or the liability is settled and their measurement also reflects the manner in which management expects to recover
or settle the carrying amount of the related asset or liability.
Deferred tax assets relating to temporary differences and unused tax losses are recognised only to the extent that it is
probable that future taxable profit will be available against which the benefits of the deferred tax asset can be utilised.
Where temporary differences exist in relation to investments in subsidiaries, branches, associates, and joint ventures,
deferred tax assets and liabilities are not recognised where the timing of the reversal of the temporary difference can be
controlled and it is not probable that the reversal will occur in the foreseeable future.
Current tax assets and liabilities are offset where a legally enforceable right of set-off exists and it is intended that net
settlement or simultaneous realisation and settlement of the respective asset and liability will occur. Deferred tax assets
and liabilities are offset where a legally enforceable right of set-off exists, the deferred tax assets and liabilities relate to
income taxes levied by the same taxation authority on either the same taxable entity or different taxable entities where it is
intended that net settlement or simultaneous realisation and settlement of the respective asset and liability will occur in
future periods in which significant amounts of deferred tax assets or liabilities are expected to be recovered or settled.
Current and non-current classification
Assets and liabilities are presented in the statement of financial position based on current and non-current classification.
An asset is classified as current when: it is either expected to be realised or intended to be sold or consumed in the
consolidated entity's normal operating cycle; it is held primarily for the purpose of trading; it is expected to be realised
within 12 months after the reporting period; or the asset is cash or cash equivalent unless restricted from being exchanged
or used to settle a liability for at least 12 months after the reporting period. All other assets are classified as non-current.
A liability is classified as current when: it is either expected to be settled in the consolidated entity's normal operating cycle;
it is held primarily for the purpose of trading; it is due to be settled within 12 months after the reporting period; or there is no
unconditional right to defer the settlement of the liability for at least 12 months after the reporting period. All other liabilities
are classified as non-current.
Deferred tax assets and liabilities are always classified as non-current.
Cash and cash equivalents
Cash and cash equivalents include cash on hand, deposits held at call with banks, other short-term highly liquid
investments with original maturities of three months or less.
Trade and other receivables
Other receivables are recognised at amortised cost, less any provision for impairment.
28 Lake Resources – Annual Report 2017
24
Lake Resources NLNotes to the financial statements30 June 2017
Lake Resources NL
Notes to the financial statements
30 June 2017
Note 1. Significant accounting policies (continued)
Interest in joint arrangements
Joint arrangements represent the contractual sharing of control between parties in a business venture where unanimous
decisions about relevant activities are required.
Separate joint venture entities providing joint venturers with an interest in net assets are classified as a joint venture and
accounted for using the equity method of accounting , whereby the investment is initially recognised at cost and adjusted
thereafter for the post-acquisition change in the Group's share of net assets of the joint venture.
Exploration and development expenditure
Exploration, evaluation and development expenditure incurred are capitalised in respect of each identifiable area of
interest. These costs are only capitalised to the extent that they are expected to be recovered through the successful
development of the area or where activities in the area have not yet reached a stage that permits reasonable assessment
of the existence of economically recoverable reserves.
A regular review is undertaken of each area of interest to determine the appropriateness of continuing to capitalise costs in
relation to that area of interest.
Costs of site restoration are provided over the life of the project from when exploration commences and are included in the
costs of that stage. Site restoration costs include the dismantling and removal of mining plant, equipment and building
structures, waste removal, and rehabilitation of the site in accordance with local laws and regulations and clauses of the
permits. Such costs have been determined using estimates of future costs, current legal requirements and technology on
an undiscounted basis.
Any changes in the estimates for the costs are accounted on a prospective basis. In determining the costs of site
restoration, there is uncertainty regarding the nature and extent of the restoration due to community expectations and
future legislation. Accordingly the costs have been determined on the basis that the restoration will be completed within
one year of abandoning the site.
Impairment of assets
At each reporting date, the company assesses whether there is any indication that an set may be impaired. The
assessment will include the consideration of external and internal sources of information. If such an indication exists, an
impairment test is carried out on the asset by comparing the recoverable amount of the asset, being the higher of the
asset's fair value less costs to sell and value in use, to the assets carrying amount. Any excess of the asset's carrying
amount over its recoverable amount is recognised immediately in profit or loss, unless the asset is carried at a revalued
amount in accordance with another Standard (eg in accordance with the revaluation model in AASB 116: Property, Plant
and Equipment). Any
impairment loss of a revalued asset is treated as a revaluation decrease in accordance with that other Standard.
Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable
amount of the cash-generating unit to which the asset belongs.
Trade and other payables
These amounts represent liabilities for goods and services provided to the consolidated entity prior to the end of the
financial year and which are unpaid. Due to their short-term nature they are measured at amortised cost and are not
discounted. The amounts are unsecured and are usually paid within 30 days of recognition.
Employee benefits
Defined contribution superannuation expense
Contributions to defined contribution superannuation plans are expensed in the period in which they are incurred.
Share-based payments
Equity-settled and cash-settled share-based compensation benefits are provided to employees.
Equity-settled transactions are awards of shares, or options over shares, that are provided to employees in exchange for
the rendering of services. Cash-settled transactions are awards of cash for the exchange of services, where the amount of
cash is determined by reference to the share price.
25
Lake Resources – Annual Report 2017 29
Lake Resources NLNotes to the financial statements30 June 2017
Lake Resources NL
Notes to the financial statements
30 June 2017
Note 1. Significant accounting policies (continued)
The cost of equity-settled transactions are measured at fair value on grant date. Fair value is independently determined
using either the Binomial or Black-Scholes option pricing model that takes into account the exercise price, the term of the
option, the impact of dilution, the share price at grant date and expected price volatility of the underlying share, the
expected dividend yield and the risk free interest rate for the term of the option, together with non-vesting conditions that do
not determine whether the consolidated entity receives the services that entitle the employees to receive payment. No
account is taken of any other vesting conditions.
The cost of equity-settled transactions are recognised as an expense with a corresponding increase in equity over the
vesting period. The cumulative charge to profit or loss is calculated based on the grant date fair value of the award, the
best estimate of the number of awards that are likely to vest and the expired portion of the vesting period. The amount
recognised in profit or loss for the period is the cumulative amount calculated at each reporting date less amounts already
recognised in previous periods.
The cost of cash-settled transactions is initially, and at each reporting date until vested, determined by applying either the
Binomial or Black-Scholes option pricing model, taking into consideration the terms and conditions on which the award was
granted. The cumulative charge to profit or loss until settlement of the liability is calculated as follows:
●
during the vesting period, the liability at each reporting date is the fair value of the award at that date multiplied by the
expired portion of the vesting period.
from the end of the vesting period until settlement of the award, the liability is the full fair value of the liability at the
reporting date.
●
All changes in the liability are recognised in profit or loss. The ultimate cost of cash-settled transactions is the cash paid to
settle the liability.
Market conditions are taken into consideration in determining fair value. Therefore any awards subject to market conditions
are considered to vest irrespective of whether or not that market condition has been met, provided all other conditions are
satisfied.
If equity-settled awards are modified, as a minimum an expense is recognised as if the modification has not been made.
An additional expense is recognised, over the remaining vesting period, for any modification that increases the total fair
value of the share-based compensation benefit as at the date of modification.
If the non-vesting condition is within the control of the consolidated entity or employee, the failure to satisfy the condition is
treated as a cancellation. If the condition is not within the control of the consolidated entity or employee and is not satisfied
during the vesting period, any remaining expense for the award is recognised over the remaining vesting period, unless the
award is forfeited.
If equity-settled awards are cancelled, it is treated as if it has vested on the date of cancellation, and any remaining
expense is recognised immediately. If a new replacement award is substituted for the cancelled award, the cancelled and
new award is treated as if they were a modification.
Fair Value of Assets and Liabilities
The company may measure some of its assets and liabilities at fair value on either a recurring or non-recurring basis after
initial recognition, depending in the requirements of the applicable Accounting Standard. Currently though there are no
assets or liabilities measured at fair value.
Fair value is the price the Company would receive to see an asset or would have to pay to transfer a liability in an orderly
(ie unforced) transaction between independent, knowledgeable and willing market participants at the measurement date.
As fair value is a market-based measure, the closest equivalent observable market pricing information is used to determine
fair value. Adjustments to market values may be made having regard to the characteristics of the specific asset or liability.
The fair values of assets and liabilities that are not traded in an active market are determined using one or more valuation
techniques. These valuations techniques maximise, to the extent possible, the use of observable market data.
For non-financial assets, the fair value measurement also takes into account a market participant's ability to use the asset
in its highest and best use or to sell it to another market participant that would use the asset in its highest and best use.
30 Lake Resources – Annual Report 2017
26
Lake Resources NLNotes to the financial statements30 June 2017
Lake Resources NL
Notes to the financial statements
30 June 2017
Note 1. Significant accounting policies (continued)
Provisions
Provisions are recognised when the company has a legal or constructive obligation, as a result of past events, for which it
is probable that an outflow of economic benefits will result and that outflow can be reliably measured.
Provisions are measured using the best estimate of the amounts required to settle the obligation at the end of the reporting
period.
Issued capital
Ordinary shares are classified as equity.
Incremental costs directly attributable to the issue of new shares or options are shown in equity as a deduction, net of tax,
from the proceeds.
Business combinations
The acquisition method of accounting is used to account for business combinations regardless of whether equity
instruments or other assets are acquired.
The consideration transferred is the sum of the acquisition-date fair values of the assets transferred, equity instruments
issued or liabilities incurred by the acquirer to former owners of the acquiree and the amount of any non-controlling interest
in the acquiree. For each business combination, the non-controlling interest in the acquiree is measured at either fair value
or at the proportionate share of the acquiree's identifiable net assets. All acquisition costs are expensed as incurred to
profit or loss.
On the acquisition of a business, the consolidated entity assesses the financial assets acquired and liabilities assumed for
appropriate classification and designation in accordance with the contractual terms, economic conditions, the consolidated
entity's operating or accounting policies and other pertinent conditions in existence at the acquisition-date.
Where the business combination is achieved in stages, the consolidated entity remeasures its previously held equity
interest in the acquiree at the acquisition-date fair value and the difference between the fair value and the previous carrying
amount is recognised in profit or loss.
Contingent consideration to be transferred by the acquirer is recognised at the acquisition-date fair value. Subsequent
changes in the fair value of the contingent consideration classified as an asset or liability is recognised in profit or loss.
Contingent consideration classified as equity is not remeasured and its subsequent settlement is accounted for within
equity.
The difference between the acquisition-date fair value of assets acquired, liabilities assumed and any non-controlling
interest in the acquiree and the fair value of the consideration transferred and the fair value of any pre-existing investment
in the acquiree is recognised as goodwill. If the consideration transferred and the pre-existing fair value is less than the fair
value of the identifiable net assets acquired, being a bargain purchase to the acquirer, the difference is recognised as a
gain directly in profit or loss by the acquirer on the acquisition-date, but only after a reassessment of the identification and
measurement of the net assets acquired, the non-controlling interest in the acquiree, if any, the consideration transferred
and the acquirer's previously held equity interest in the acquirer.
Business combinations are initially accounted for on a provisional basis. The acquirer retrospectively adjusts the
provisional amounts recognised and also recognises additional assets or liabilities during the measurement period, based
on new information obtained about the facts and circumstances that existed at the acquisition-date. The measurement
period ends on either the earlier of (i) 12 months from the date of the acquisition or (ii) when the acquirer receives all the
information possible to determine fair value.
Earnings per share
Basic earnings per share
Basic earnings per share is calculated by dividing the profit attributable to the owners of Lake Resources NL, excluding any
costs of servicing equity other than ordinary shares, by the weighted average number of ordinary shares outstanding
during the financial year, adjusted for bonus elements in ordinary shares issued during the financial year.
27
Lake Resources – Annual Report 2017 31
Lake Resources NLNotes to the financial statements30 June 2017
Lake Resources NL
Notes to the financial statements
30 June 2017
Note 1. Significant accounting policies (continued)
Diluted earnings per share
Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take into account
the after income tax effect of interest and other financing costs associated with dilutive potential ordinary shares and the
weighted average number of shares assumed to have been issued for no consideration in relation to dilutive potential
ordinary shares.
Goods and Services Tax ('GST') and other similar taxes
Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of GST incurred is
not recoverable from the Australian Tax Office.
Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net amount of GST
recoverable from, or payable to, the ATO are presented as operating cash flows included in receipts from customers or
payments to suppliers.
Cash flows are presented on a gross basis. The GST components of cash flows arising from investing or financing
activities which are recoverable from, or payable to, the ATO are presented as operating cash flows included in receipts
from customers or payments to suppliers.
Equity Settled Compensation
The company makes equity-settled share-based payments to directors, employees and other parties for services provided.
The fair value of the equity is measured at grant date and recognised as an asset or as an expense over the vesting
period, with a corresponding increase to an equity account. The fair value of shares is ascertained as the market bid price.
Comparative Figures
When required by Accounting Standards, comparative figures have been adjusted to conform to changes in presentation
for the current financial year.
New Accounting Standards and Interpretations not yet mandatory or early adopted
Australian Accounting Standards and Interpretations that have recently been issued or amended but are not yet
mandatory, have not been early adopted by the consolidated entity for the annual reporting period ended 30 June 2017.
The consolidated entity's assessment of the impact of these new or amended Accounting Standards and Interpretations,
most relevant to the consolidated entity, are set out below.
AASB 16 Leases
This standard is applicable to annual reporting periods beginning on or after 1 January 2019. The standard replaces AASB
117 'Leases' and for lessees will eliminate the classifications of operating leases and finance leases. Subject to exceptions,
a 'right-of-use' asset will be capitalised in the statement of financial position, measured at the present value of the
unavoidable future lease payments to be made over the lease term. The exceptions relate to short-term leases of 12
months or less and leases of low-value assets (such as personal computers and small office furniture) where an
accounting policy choice exists whereby either a 'right-of-use' asset is recognised or lease payments are expensed to profit
or loss as incurred. A liability corresponding to the capitalised lease will also be recognised, adjusted for lease
prepayments, lease incentives received, initial direct costs incurred and an estimate of any future restoration, removal or
dismantling costs. Straight-line operating lease expense recognition will be replaced with a depreciation charge for the
leased asset (included in operating costs) and an interest expense on the recognised lease liability (included in finance
costs). In the earlier periods of the lease, the expenses associated with the lease under AASB 16 will be higher when
compared to lease expenses under AASB 117. However EBITDA (Earnings Before Interest, Tax, Depreciation and
Amortisation) results will be improved as the operating expense is replaced by interest expense and depreciation in profit
or loss under AASB 16. For classification within the statement of cash flows, the lease payments will be separated into
both a principal (financing activities) and interest (either operating or financing activities) component. For lessor accounting,
the standard does not substantially change how a lessor accounts for leases. The consolidated entity will adopt this
standard from 1 July 2019 but the impact of its adoption is yet to be assessed by the consolidated entity.
32 Lake Resources – Annual Report 2017
28
Lake Resources NLNotes to the financial statements30 June 2017
Lake Resources NL
Notes to the financial statements
30 June 2017
Note 2. Critical accounting judgements, estimates and assumptions
The preparation of the financial statements requires management to make judgements, estimates and assumptions that
affect the reported amounts in the financial statements. Management continually evaluates its judgements and estimates in
relation to assets, liabilities, contingent liabilities, revenue and expenses. Management bases its judgements, estimates
and assumptions on historical experience and on other various factors, including expectations of future events,
management believes to be reasonable under the circumstances. The resulting accounting judgements and estimates will
seldom equal the related actual results. The judgements, estimates and assumptions that have a significant risk of causing
a material adjustment to the carrying amounts of assets and liabilities (refer to the respective notes) within the next
financial year are discussed below.
Going concern
The most critical accounting estimate/judgment used in preparing the financial statements is the going concern basis - see
note 1 Basis of Preparation above.
Share-based payment transactions
The consolidated entity measures the cost of equity-settled transactions with employees by reference to the fair value of
the equity instruments at the date at which they are granted. The fair value is determined by using either the Binomial or
Black-Scholes model taking into account the terms and conditions upon which the instruments were granted. The
accounting estimates and assumptions relating to equity-settled share-based payments would have no impact on the
carrying amounts of assets and liabilities within the next annual reporting period but may impact profit or loss and equity.
Exploration and evaluation costs
Exploration and evaluation costs have been capitalised on the basis that the consolidated entity will commence commercial
production in the future, from which time the costs will be amortised in proportion to the depletion of the mineral resources.
Key judgements are applied in considering costs to be capitalised which includes determining expenditures directly related
to these activities and allocating overheads between those that are expensed and capitalised. In addition, costs are only
capitalised that are expected to be recovered either through successful development or sale of the relevant mining interest.
Factors that could impact the future commercial production at the mine include the level of reserves and resources, future
technology changes, which could impact the cost of mining, future legal changes and changes in commodity prices. To the
extent that capitalised costs are determined not to be recoverable in the future, they will be written off in the period in which
this determination is made.
Note 3. Operating segments
Segment Information
As a result of the consolidated entity acquiring Lith NRG Pty Ltd (see Note 20) during the period, the company currently
operates entirely in the mineral exploration industry with interests in Argentina (previously Pakistan) and corporate
operations in Australia. Accordingly, the information provided to the Board of Directors is prepared using the same
measures used in preparing the financial statements.
Geographical information
Argentina
Pakistan
Sales to external customers
Geographical non-current
assets
2017
$
2016
$
2017
$
2016
$
-
-
-
-
-
-
1,887,866
35
1,887,901
-
35
35
29
Lake Resources – Annual Report 2017 33
Lake Resources NLNotes to the financial statements30 June 2017
Lake Resources NL
Notes to the financial statements
30 June 2017
Note 4. Expenses
Loss before income tax includes the following specific expenses:
Net foreign exchange loss
Net foreign exchange loss
Superannuation expense
Defined contribution superannuation expense
Note 5. Income tax expense
Numerical reconciliation of income tax expense and tax at the statutory rate
Loss before income tax expense
Tax at the statutory tax rate of 27.5% (2016: 30%)
Tax effect amounts which are not deductible/(taxable) in calculating taxable income:
Share-based payments
Future income tax benefit of tax losses not brought to account
Income tax expense
Consolidated
2017
$
2016
$
2,847
13,077
-
-
Consolidated
2017
$
2016
$
(1,170,745)
(41,682)
(321,955)
(12,505)
128,563
-
(193,392)
193,392
(12,505)
12,505
-
-
The Company has unrecouped, unconfirmed carry forward tax losses of approximately $10.3 million (2016: $9.6 million).
A deferred income tax asset arising from carry forward tax losses will only be recognised to the extent that:
(a) it is probable that the Company will derive future assessable income of a nature and of an amount sufficient to enable
the benefits from the deductions for the losses to be realised;
(b) the Company continues to comply with the conditions for deductibility imposed by the law; and
(c) no changes in tax legislation adversely affect the Company in realising the benefit from the losses.
Note 6. Current assets - cash and cash equivalents
Consolidated
2017
$
2016
$
1,396,825
74,210
Consolidated
2017
$
2016
$
13,292
1,070
Cash at bank and on hand
Note 7. Current assets - other current assets
Prepayments
34 Lake Resources – Annual Report 2017
30
Lake Resources NLNotes to the financial statements30 June 2017
Lake Resources NL
Notes to the financial statements
30 June 2017
Note 8. Non-current assets - investments accounted for using the equity method
Lake Resources NL (the parent) holds a 27.5% interest through its subsidiary in Chagai Resources (Pvt) Ltd, a joint
arrangement between the group and two other parties. The principal place of business is Pakistan and the primary purpose
is mineral exploration. The exploration licences held have a three year term to June 2018 and are renewable for 2 further
periods of 3 years to June 2024. The Group's interest is equity accounted and the Group's investment represents its share
of net assets.
Equity accounted investment
Consolidated
2017
$
2016
$
35
35
The initial financial contribution to the entity will be a minimum of US$1.9 million by the major party, Colt Resources Middle
East, to be expended on exploration of the licences by 2018. Through further contributions the major party's interest in the
project can increase, with Lake's ultimate interest settling at 15%. If the initial contribution is not made and/or Chagai
Resources fails to expend the contribution on exploration of the licence areas within
3 years, then the Group will assume 100% ownership of Chagai Resources.
During the year no significant exploration activities were undertaken.
Note 9. Non-current assets - exploration and evaluation
Exploration and evaluation assets - at cost
1,887,866
-
Reconciliations
Reconciliations of the written down values at the beginning and end of the current and previous financial year are set out
below:
Consolidated
2017
$
2016
$
Consolidated
Balance at 1 July 2015
Balance at 30 June 2016
Additions - direct exploration costs
Additions through business combinations (note 20)
Balance at 30 June 2017
Exploration
and
evaluation
assets
$
Total
$
-
-
-
538,639
1,349,227
-
538,639
1,349,227
1,887,866
1,887,866
Exploration and evaluation costs are carried forward in the statement of financial position as detailed in accounting policy
note 1 Recoverability of the carrying amount of exploration assets is dependent on the successful exploration of minerals.
31
Lake Resources – Annual Report 2017 35
Lake Resources NLNotes to the financial statements30 June 2017
Lake Resources NL
Notes to the financial statements
30 June 2017
Note 9. Non-current assets - exploration and evaluation (continued)
Petra Project
On 27 February, 2017 the Company entered into an option agreement to explore and evaluate and if successful acquire
tenements. This option agreement has the following terms:
I.
II.
4 million LKE shares for a 4 month period with (note that this was subsequently extended to November / December
2017):
a.
b.
1 million LKE shares to be issued on signing
3 million LKE shares to be issued within 60 days (extendable to 6 months). All due diligence and initial
exploration to be undertaken at Lake cost.
15 million LKE shares on execution of the option. This will be paid in 2 tranches:
a.
b.
7.5 million LKE share upon execution of the option
7.5 million LKE shares once 65% of areas are granted for exploration
Note 10. Current liabilities - trade and other payables
Sundry creditors and accrued expenses
Refer to note 15 for further information on financial instruments.
Note 11. Equity - issued capital
Consolidated
2017
$
2016
$
69,102
7,284
Ordinary shares - fully paid
227,493,026 95,876,034 12,346,866
8,946,465
Consolidated
2017
Shares
2016
Shares
2017
$
2016
$
Movements in ordinary share capital
Details
Balance
Date
Shares
$
1 July 2015
95,876,034
8,946,465
Balance
Capital raising
Issue of shares - vendors of LithNRG Pty Ltd
Issue of shares - loan providers of LithNRG Pty Ltd
Capital raising
Capital raising
Issue of shares - share-based payment
Conversion of performance shares
Capital raising costs
30 June 2016
14 November 2016
14 November 2016
14 November 2016
21 December 2016
27 February 2017
27 February 2017
5 June 2017
95,876,034
25,000,000
50,000,000
2,000,000
16,116,992
24,000,000
2,000,000
12,500,000
-
8,946,465
500,000
550,000
40,000
1,047,604
1,200,000
110,000
137,500
(184,703)
Balance
30 June 2017
227,493,026 12,346,866
36 Lake Resources – Annual Report 2017
32
Lake Resources NLNotes to the financial statements30 June 2017
Lake Resources NL
Notes to the financial statements
30 June 2017
Note 11. Equity - issued capital (continued)
Performance rights (note that the valuation for the performance rights are recognised in performance rights reserve)
Details
Balance
Date
1 July 2015
Performance
rights
$
-
-
Balance
Issue of performance rights - vendors of LithNRG
Issue of performance rights – LTI
Lapsed - Tranche 1 (issued to vendor of LithNRG)
Converted to share capital
30 June 2016
14 November 2016
14 November 2016
5 June 2017
5 June 2017
-
50,000,000
8,500,000
(25,000,000)
(12,500,000)
-
550,000
467,500
-
(137,500)
Balance
30 June 2017
21,000,000
880,000
Options (note that the valuation for the options are recognised in option reserve)
Details
Balance
Balance
Issued in relation to acquisition of LithNRG
Issued to brokers in relation to services for capital
raising
Issued to brokers in relation to services for capital
raising
Issued in relation to shares issued on capital raising
Lapsed of Class B options (relating to acquisition of
LithNRG)
Date
Options
$
1 July 2015
-
-
30 June 2016
14 November 2016
-
50,000,000
-
1,401
21 December 2016
1,539,250
8,634
27 February 2017
27 February 2017
7,350,000
12,000,000
41,228
-
(12,500,000)
-
Balance
30 June 2017
58,389,250
51,263
Ordinary shares
Ordinary shares entitle the holder to participate in dividends and the proceeds on the winding up of the company in
proportion to the number of and amounts paid on the shares held. The fully paid ordinary shares have no par value and the
company does not have a limited amount of authorised capital.
On a show of hands every member present at a meeting in person or by proxy shall have one vote and upon a poll each
share shall have one vote.
Share buy-back
There is no current on-market share buy-back.
Capital risk management
Exploration companies such as Lake Resources NL are funded primarily by share capital. The Company’s capital
comprises share capital supported by financial assets and financial liabilities.
Management controls the capital of the Company to ensure it can fund its operations and continue as a going concern.
Capital management policy is to fund exploration activities by way of equity. No dividend will be paid whilst the Company is
in its exploration stage. There are no externally imposed capital requirements.
33
Lake Resources – Annual Report 2017 37
Lake Resources NLNotes to the financial statements30 June 2017
Lake Resources NL
Notes to the financial statements
30 June 2017
Note 12. Equity - reserves
Capital profits reserve
Options reserve
Performance rights reserve
Consolidated
2017
$
2016
$
4,997
51,263
880,000
4,997
-
-
936,260
4,997
Capital profits reserve
The capital profits reserve records non-taxable profits on sale of investments.
Option reserve
The option reserve is to recognise the fair value of options issued for share based payment to employees and service
providers in relation to the supply of goods or services.
Performance rights reserve
The performance rights reserve is to recognise the fair value of performance rights issued to employees and vendors in
relation to the supply of goods or services.
Movements in reserves
Movements in each class of reserve during the current and previous financial year are set out below:
Consolidated
Balance at 1 July 2015
Balance at 30 June 2016
Share-based payments - issue of options
Share-based payments - issued to vendors of LithNRG
Share-based payments - issued as long term incentives
Transferred to share capital conversion
Capital profit
reserve
$
Option
reserve
$
Performance
rights reserve
$
Total
$
4,997
4,997
-
-
-
-
-
-
4,997
-
51,263
-
-
-
-
-
550,000
467,500
(137,500)
4,997
51,263
550,000
467,500
(137,500)
Balance at 30 June 2017
4,997
51,263
880,000
936,260
Note 13. Equity - accumulated losses
Accumulated losses at the beginning of the financial year
Loss after income tax expense for the year
Accumulated losses at the end of the financial year
Note 14. Equity - dividends
Consolidated
2017
$
2016
$
(8,883,431)
(1,170,745)
(8,841,749)
(41,682)
(10,054,176)
(8,883,431)
There were no dividends paid, recommended or declared during the current or previous financial year.
38 Lake Resources – Annual Report 2017
34
Lake Resources NLNotes to the financial statements30 June 2017
Lake Resources NL
Notes to the financial statements
30 June 2017
Note 15. Financial instruments
Financial risk management objectives
The consolidated entity's activities expose it to a variety of financial risks: market risk (including foreign currency risk, price
risk and interest rate risk), credit risk and liquidity risk. The consolidated entity's overall risk management program focuses
on the unpredictability of financial markets and seeks to minimise potential adverse effects on the financial performance of
the consolidated entity. The consolidated entity uses different methods to measure different types of risk to which it is
exposed.
Risk management is carried out by the Board of Directors ('the Board'). These policies include identification and analysis of
the risk exposure of the consolidated entity and appropriate procedures, controls and risk limits.
Market risk
Foreign currency risk
The consolidated entity undertakes certain transactions denominated in foreign currency and is exposed to foreign
currency risk through foreign exchange rate fluctuations.
Foreign exchange risk arises from future commercial transactions and recognised financial assets and financial liabilities
denominated in a currency that is not the entity's functional currency.
In order to protect against adverse exchange rate movements, the consolidated entity has set up a foreign bank account
(USD) which is used to fund its exploration activities in Argentina.
The carrying amount of the consolidated entity's foreign currency denominated financial assets at the reporting date were
as follows:
Consolidated
US dollars
Assets
Liabilities
2017
$
2016
$
2017
$
2016
$
329,121
-
-
-
A sensitivity analysis of the movement in exchange rate (based on the closing balance of the asset) is presented below
Consolidated - 2017
% change
profit before
tax
Effect on
equity
% change
profit before
tax
Effect on
equity
AUD strengthened
Effect on
AUD weakened
Effect on
USD assets
1%
3,291
3,291
(1%)
(3,291)
(3,291)
Price risk
The consolidated entity is not exposed to any significant price risk.
Interest rate risk
Currently the consolidated entity does not have any external borrowings subject to variable rates and therefore has minimal
interest rate risk.
Credit risk
The consolidated entity deemed its credit risk to be minimal as its financial assets are mainly cash held at financial
institutions.
Liquidity risk
Vigilant liquidity risk management requires the consolidated entity to maintain sufficient liquid assets (mainly cash and cash
equivalents) and available borrowing facilities to be able to pay debts as and when they become due and payable.
35
Lake Resources – Annual Report 2017 39
Lake Resources NLNotes to the financial statements30 June 2017
Lake Resources NL
Notes to the financial statements
30 June 2017
Note 15. Financial instruments (continued)
The consolidated entity manages liquidity risk by maintaining adequate cash reserves and available borrowing facilities by
continuously monitoring actual and forecast cash flows and matching the maturity profiles of financial assets and liabilities.
The consolidated entity only deposit its cash and cash equivalent with the major banks in Australia.
Remaining contractual maturities
The following tables detail the consolidated entity's remaining contractual maturity for its financial instrument liabilities. The
tables have been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest date on which
the financial liabilities are required to be paid. The tables include both interest and principal cash flows disclosed as
remaining contractual maturities and therefore these totals may differ from their carrying amount in the statement of
financial position.
Consolidated - 2017
Non-derivatives
Non-interest bearing
Cash and cash equivalent
Trade payables
Total non-derivatives
Consolidated - 2016
Non-derivatives
Non-interest bearing
Cash and cash equivalent
Trade payables
Total non-derivatives
Weighted
average
interest rate
%
1 year or less
$
Between 1
and 2 years
$
Between 2
and 5 years
$
Over 5 years
$
Remaining
contractual
maturities
$
-
-
1,392,285
(69,102)
1,323,183
-
-
-
-
-
-
-
-
-
1,392,285
(69,102)
1,323,183
Weighted
average
interest rate
%
1 year or less
$
Between 1
and 2 years
$
Between 2
and 5 years
$
Over 5 years
$
Remaining
contractual
maturities
$
-
-
74,210
(7,284)
66,926
-
-
-
-
-
-
-
-
-
74,210
(7,284)
66,926
The cash flows in the maturity analysis above are not expected to occur significantly earlier than contractually disclosed
above.
Fair value of financial instruments
Unless otherwise stated, the carrying amounts of financial instruments reflect their fair value.
Note 16. Key management personnel disclosures
Directors
The following persons were directors of Lake Resources NL during the financial year:
S. Crow (Non-Executive Chairman - appointed 14 November 2016)
S. Promnitz (Managing Director - appointed 14 November 2016)
P.J. Gilchrist
R Johnston (resigned 14 November 2016)
J.G. Clavarino (resigned 14 November 2016)
40 Lake Resources – Annual Report 2017
36
Lake Resources NLNotes to the financial statements30 June 2017
Lake Resources NL
Notes to the financial statements
30 June 2017
Note 16. Key management personnel disclosures (continued)
Compensation
The aggregate compensation made to directors and other members of key management personnel of the consolidated
entity is set out below:
Short-term employee benefits
Post-employment benefits
Share-based payments
Note 17. Remuneration of auditors
Consolidated
2017
$
2016
$
172,020
13,077
467,500
652,597
-
-
-
-
During the financial year the following fees were paid or payable for services provided by Nexia Brisbane Audit Pty Ltd, the
auditor of the company:
Audit services - Nexia Brisbane Audit Pty Ltd
Audit or review of the financial statements
Note 18. Related party transactions
Parent entity
Lake Resources NL is the parent entity.
Subsidiaries
Interests in subsidiaries are set out in note 21.
Consolidated
2017
$
2016
$
23,000
9,000
Key management personnel
Disclosures relating to key management personnel are set out in note 16 and the remuneration report included in the
directors' report.
Transactions with related parties
The following transactions occurred with related parties:
Payment for goods and services:
Company secretarial and accounting services paid to Franks & Associates Pty Ltd, a
company associated with Andrew Bursill (Company Secretary)
Consultancy services relating to capital raising paid to Salaris Consulting Pty Ltd, a company
associated with Stuart Crow (Director)
Professional services in relation to exploration work undertaken by Argent Resources Pty
Ltd, a company of which Mr J.C. Clavarino is a director, on behalf of the Company
Rental of premises from Trenlin Pty Ltd, a Company of which Mr P. Gilchrist is a
shareholder.
Other transactions:
Repayment of borrowings to the vendors of LithNRG Pty Ltd
Consolidated
2017
$
2016
$
81,890
28,160
-*
-*
258,000
-
-
-*
-*
-
37
Lake Resources – Annual Report 2017 41
Lake Resources NLNotes to the financial statements30 June 2017
Lake Resources NL
Notes to the financial statements
30 June 2017
Note 18. Related party transactions (continued)
*
These services were rendered in the year for nil consideration.
Receivable from and payable to related parties
There were no trade receivables from or trade payables to related parties at the current and previous reporting date.
Loans to/from related parties
There were no loans to or from related parties at the current and previous reporting date.
Terms and conditions
All transactions were made on normal commercial terms and conditions and at market rates.
Note 19. Parent entity information
Set out below is the supplementary information about the parent entity.
Statement of profit or loss and other comprehensive income
Loss after income tax
Total comprehensive income
Statement of financial position
Total current assets
Total assets
Total current liabilities
Total liabilities
Equity
Issued capital
Capital profits reserve
Options reserve
Performance rights reserve
Accumulated losses
Total equity
Parent
2017
$
2016
$
(1,170,746)
(41,862)
(1,170,746)
(41,862)
Parent
2017
$
2016
$
1,405,610
75,280
3,298,052
75,315
69,102
7,284
69,102
7,284
12,346,866
4,997
51,263
880,000
(10,054,176)
8,946,465
4,997
-
-
(8,883,431)
3,228,950
68,031
Guarantees entered into by the parent entity in relation to the debts of its subsidiaries
The parent entity had no guarantees in relation to the debts of its subsidiaries as at 30 June 2017 and 30 June 2016
Contingent liabilities
The parent entity had no contingent liability as at 30 June 2017 and 30 June 2016
Capital commitments - Property, plant and equipment
The parent entity had no capital commitments for property, plant and equipment as at 30 June 2017 and 30 June 2016.
42 Lake Resources – Annual Report 2017
38
Lake Resources NLNotes to the financial statements30 June 2017
Lake Resources NL
Notes to the financial statements
30 June 2017
Note 19. Parent entity information (continued)
Significant accounting policies
The accounting policies of the parent entity are consistent with those of the consolidated entity, as disclosed in note 1,
except for the following:
●
●
●
Investments in subsidiaries are accounted for at cost, less any impairment, in the parent entity.
Investments in associates are accounted for at cost, less any impairment, in the parent entity.
Dividends received from subsidiaries are recognised as other income by the parent entity and its receipt may be an
indicator of an impairment of the investment.
Note 20. Acquisition of LithNRG Pty Ltd
On 14 November 2016, the Company acquired 100% interest in LithNRG Pty Ltd ('LithNRG') for a consideration of
50,000,000 ordinary shares with 25,000,000 attached options and 50,000,000 performance shares with 25,000,000
attached options. This transaction has been accounted for as a share-based payment under AASB 2 Share-Based
Payments. As Lake Resources NL controls LithNRG, the Company is required to consolidate the entity in the financial
statements.
Details of the acquisition are as follows:
Cash and cash equivalents
Other current assets
Exploration and evaluation assets
Trade and other payables
Borrowings - related party
Net assets acquired
Goodwill
Acquisition-date fair value of the total consideration transferred
Representing:
50,000,000 fully paid ordinary shares
50,000,000 performance shares
50,000,000 options exercisable at $0.05, 18-months expiry
Fair value
$
2,535
13,939
1,349,227
(6,300)
(258,000)
1,101,401
-
1,101,401
550,000
550,000
1,401
1,101,401
39
Lake Resources – Annual Report 2017 43
Lake Resources NLNotes to the financial statements30 June 2017
Lake Resources NL
Notes to the financial statements
30 June 2017
Note 20. Acquisition of LithNRG Pty Ltd (continued)
The performance shares and options issued were subject to the following performance criteria:
Tranche 1 – 25,000,000 performance shares and 12,500,000 Class B options – the vesting of Tranche 1 was conditional
upon completion of Capital Raising within 3 months with issue of 40,000,000 shares under a placement and minimum $2
million being raised.
Tranche 2 – 12,500,000 performance shares and 6,250,000 Class C options – the vesting of Tranche 2 was conditional
upon approvals or consents being granted by the relevant Argentinian regulatory and/or governmental bodies as are
necessary to permit Non-invasive Exploration to be undertaken or occur at least 50% (by number) of the Tenement
Applications in Catamarca Province. This must occur within 5 years after the date of the Annual General Meeting in 2016.
Tranche 3 – 12,500,000 performance shares and 6,250,000 Class D options – the vesting of Tranche 3 was conditional
upon approvals or consents being granted by the relevant Argentinian regulatory and/or governmental bodies as are
necessary to permit Non-invasive Exploration to be undertaken or occur at least 50% (by number) of the Tenement
Applications in Jujuy Province. This must occur within 5 years after the date of the Annual General Meeting in 2016.
The shares, performance shares and options are valued using Lake’s share price as at 24 May 2016 being the share price
prior to the announcement of the LithNRG acquisition being made. In addition, the following assumptions were used to
determine the fair value of the options:
Share price at date of grant: $0.011
Exercise price per option: $0.05
Risk free rate: 2%
Volatility: 50%
Life of option: 1.5 years
Vesting period: Immediately
Probability of achieving the respective performance condition: 50% to 100%
Note 21. Interests in subsidiaries
The consolidated financial statements incorporate the assets, liabilities and results of the following subsidiaries in
accordance with the accounting policy described in note 1:
Name
Lake Mining Pakistan (Pvt) Limited *
LithNRG Pty Ltd
Minerales Australes SA **
Morena del Valle Minerals SA **
Principal place of business /
Country of incorporation
Pakistan
Australia
Argentina
Argentina
Ownership interest
2016
2017
%
%
100.00%
100.00%
100.00%
100.00%
100.00%
-
-
-
*
**
The subsidiary was incorporated on 4 December 2014. The subsidiary has share capital consisting solely of ordinary
shares which are held directly by the group. The proportion of ownership interests held equals the voting rights held
by the group. The subsidiary's principal place of business is also its country of incorporation.
Interest is held through LithNRG Pty Ltd
Note 22. Events after the reporting period
No matter or circumstance has arisen since 30 June 2017 that has significantly affected, or may significantly affect the
consolidated entity's operations, the results of those operations, or the consolidated entity's state of affairs in future
financial years.
44 Lake Resources – Annual Report 2017
40
Lake Resources NLNotes to the financial statements30 June 2017
Lake Resources NL
Notes to the financial statements
30 June 2017
Note 23. Reconciliation of loss after income tax to net cash used in operating activities
Loss after income tax expense for the year
(1,170,745)
(41,682)
Consolidated
2017
$
2016
$
Adjustments for:
Share-based payments
Expenses written back
Change in operating assets and liabilities:
Decrease in trade and other receivables
Increase in other current assets
Increase/(decrease) in trade and other payables
Net cash used in operating activities
Non-Cash Financing and Investing Activities
467,500
-
-
(12,017)
13,905
(12,222)
55,518
-
-
(2,313)
(646,044)
(56,012)
During the period, the Company acquired LithNRG Pty Ltd and its subsidiaries through share-based payment
arrangements - refer to Note 20 for further details.
In addition to the above, the consolidated entity entered into share-based payment arrangements with its directors and
suppliers - refer to Note 25 for further details.
Note 24. Earnings per share
Consolidated
2017
$
2016
$
Loss after income tax attributable to the owners of Lake Resources NL
(1,170,745)
(41,682)
Weighted average number of ordinary shares used in calculating basic earnings per share
162,386,890 95,876,034
Weighted average number of ordinary shares used in calculating diluted earnings per share 162,386,890 95,876,034
Number
Number
Basic earnings per share
Diluted earnings per share
Cents
Cents
(0.72)
(0.72)
(0.04)
(0.04)
41
Lake Resources – Annual Report 2017 45
Lake Resources NLNotes to the financial statements30 June 2017
Lake Resources NL
Notes to the financial statements
30 June 2017
Note 25. Share-based payments
On 14 November 2016, the Company acquired 100% interest in LithNRG Pty Ltd ('LithNRG') for a consideration of
50,000,000 ordinary shares with 25,000,000 attached options and 50,000,000 performance shares with 25,000,000
attached options. Refer to Note 20 for further details.
At the 2016 Annual General Meeting, the shareholders of the Company approved the Long Term Incentive (LTI) Plan. The
main purpose of the plan is to give incentives to eligible participants (or their nominee) to provide dedicated and ongoing
commitment and effort to the Company aligning the interest of both employees and shareholders and for the Company to
reward eligible employees for their effort. The LTI Plan contemplates the issue to eligible employees of performance rights
which may have milestones.
Under the Plan, the Company allocated 8.5 million performance rights to two Directors, Mr Steve Promnitz (7.5 million) and
Mr Stuart Crow (1 million). The performance shares were issued at nil consideration.
Mr Promnitz's performance shares vest on the following performance criteria:
a) a third vest when initial exploration can commence, triggered by commencement of the first ground based
geophysical survey over a minimum of 10 tenement applications;
b) a third vest when initial drilling can commence, triggered by the commencement of the first drill hole over a
minimum of 10 of the tenement applications;
c) a third vest when the Company's market capitalisation reaches $22.287 million calculated based on the
volume weighted average market price (VWAP) on the ASX over 20 day trading period multiplied by the number of
shares on issue at the time.
Mr Crow's performance shares vest when the Company's market capitalisation reaches $22.287 million calculated based
on the volume weighted average market price (VWAP) on the ASX over 20 day trading period multiplied by the number of
shares on issue at the time.
The performance shares for Mr Promnitz and Mr Crow were valued at $467,500 based on the closing share price when the
performance shares were granted.
On 21 December 2016, the Company issued 1,539,250 options to brokers for capital raising services at nil consideration.
The term of the options include exercise price of $0.10 and expires on 14 July 2018. A Black-Scholes Option Pricing model
has been used to calculate the fair value of the options and a share based payment of $8,634 has been recognised as
share issue costs.
On 27 February 2017, the Company issued 7,350,000 options to various brokers for capital raising services at nil
consideration. The term of the options include exercise price of $0.10 and expires on 27 August 2018. A Black-Scholes
Option Pricing model has been used to calculate the fair value of the options and a share based payment of $41,228 has
been recognised as share issue costs.
Set out below are summaries of options granted as share-based payments:
2017
Balance at
Exercise the start of
Grant date
Expiry date
price
the year
Granted
Exercised
14/11/2016*
14/11/2016*
14/11/2016*
14/11/2016*
21/12/2016
27/02/2017
04/04/2018
14/05/2018
30/11/2018
See Note **
14/07/2018
27/08/2018
$0.05
$0.05
$0.05
$0.05
$0.10
$0.10
-
-
-
-
-
-
-
25,000,000
12,500,000
6,250,000
6,250,000
1,539,250
7,350,000
58,889,250
Expired/
forfeited/
other
Balance at
the end of
the year
Vested
and
exercisable
-
-
-
-
-
-
-
-
(12,500,000)
-
-
-
-
(12,500,000)
25,000,000
-
6,250,000
6,250,000
1,539,250
7,350,000
46,389,250
25,000,000
6,250,000
-
1,539,250
7,350,000
40.139.250
*
**
These options relate to the acquisition of LithNRG - refer to Note 20 for further details.
The option vest on the condition the exploration for 50% of Jujuy is approved. The option expires 18 months after the condition has been met.
Expiry Date is 18 months after the satisfaction of the condition – requirement of approval for exploration for 50% of Jujuy.
The weighted average exercise price during the financial year was $0.06.
42
46 Lake Resources – Annual Report 2017
Lake Resources NLNotes to the financial statements30 June 2017
Lake Resources NL
Notes to the financial statements
30 June 2017
Note 25. Share-based payments (continued)
The weighted average remaining contractual life of options outstanding at the end of the financial year was 1.02 years.
Set out below are summaries of performance rights as share-based payments:
2017
Grant date
Expiry date
14/11/2016 *
14/11/2016 *
14/11/2016 *
14/11/2016
06/04/2017
04/10/2021
04/10/2021
14/11/2021
Balance at
the start of
the year
Granted
Converted to
shares
Expired/
forfeited/
other
Balance at
the end of
the year
- 25,000,000
- 12,500,000
- 12,500,000
-
8,500,000
- 58,500,000
-
(12,500,000)
-
-
(12,500,000)
(25,000,000)
-
-
-
- 12,500,000
8,500,000
-
(25,000,000) 21,000,000
*
These performance rights relate to the acquisition of LithNRG - refer to Note 20 for further details.
None of the performance rights at the end of the year are exercisable / vested.
The weighted average remaining contractual life of performance rights outstanding at the end of the financial year was 4.3
years.
For the options granted as share-based payments during the current financial year, the valuation model inputs used to
determine the fair value at the grant date, are as follows:
Grant date
Expiry date
14/11/2016
14/11/2016
14/11/2016
14/11/2016
21/12/2016
27/02/2017
04/04/2018
14/05/2018
30/11/2018
Refer *
14/08/2018
27/08/2018
Share price Exercise
at grant date
price
Expected
volatility
Dividend
Risk-free
Fair value
yield
interest rate at grant date
$0.01
$0.01
$0.01
$0.01
$0.06
$0.06
$0.05
$0.05
$0.05
$0.05
$0.10
$0.10
50.00%
50.00%
50.00%
50.00%
50.00%
50.00%
-
-
-
-
-
-
2.00%
2.00%
2.00%
2.00%
2.00%
2.00%
$0.000
$0.000
$0.000
$0.000
$0.006
$0.006
*
The option vest on the condition the exploration for 50% of Jujuy is approved. The option expires 18 months after the condition has been met.
For the performance rights granted as share-based payments during the current financial year, the valuation model inputs
used to determine the fair value at the grant date, are as follows:
Grant date
14/11/2016*
14/11/2016*
14/11/2016**
Expiry date
06/04/2017
04/10/2021
14/11/2021
Share price Fair value
at grant date at grant date
$0.01
$0.01
$0.06
$0.011
$0.011
$0.055
*
**
Relating to acquisition of Lith NRG. Note the share price is based on the date of prior to the announcement of the acquisition of LithNRG.
Relating to LTI. The share price relates to the LTI was approval by the shareholders.
43
Lake Resources – Annual Report 2017 47
Lake Resources NLNotes to the financial statements30 June 2017
Lake Resources NL
Directors’ declaration
Lake Resources NL
30 June 2017
Directors' declaration
30 June 2017
In the directors' opinion:
●
●
●
●
the attached financial statements and notes comply with the Corporations Act 2001, the Accounting Standards, the
Corporations Regulations 2001 and other mandatory professional reporting requirements;
the attached financial statements and notes comply with International Financial Reporting Standards as issued by the
International Accounting Standards Board as described in note 1 to the financial statements;
the attached financial statements and notes give a true and fair view of the consolidated entity's financial position as
at 30 June 2017 and of its performance for the financial year ended on that date; and
there are reasonable grounds to believe that the company will be able to pay its debts as and when they become due
and payable.
The directors have been given the declarations required by section 295A of the Corporations Act 2001.
Signed in accordance with a resolution of directors made pursuant to section 295(5)(a) of the Corporations Act 2001.
On behalf of the directors
___________________________
S. Promnitz
Managing Director
29 September 2017
48 Lake Resources – Annual Report 2017
44
Lake Resources NL
Independent auditor’s report to the members of Lake Resources NL
30 June 2017
Lake Resources NL
Independent auditor's report to the members of Lake Resources NL
45
Lake Resources – Annual Report 2017 49
Lake Resources NL
Independent auditor’s report to the members of Lake Resources NL
30 June 2017
Lake Resources NL
Independent auditor's report to the members of Lake Resources NL
50 Lake Resources – Annual Report 2017
46
Lake Resources NL
Independent auditor’s report to the members of Lake Resources NL
30 June 2017
Lake Resources NL
Independent auditor's report to the members of Lake Resources NL
47
Lake Resources – Annual Report 2017 51
Lake Resources NL
Independent auditor’s report to the members of Lake Resources NL
30 June 2017
Lake Resources NL
Independent auditor's report to the members of Lake Resources NL
52 Lake Resources – Annual Report 2017
48
Lake Resources NL
Independent auditor’s report to the members of Lake Resources NL
30 June 2017
Lake Resources NL
Independent auditor's report to the members of Lake Resources NL
49
Lake Resources – Annual Report 2017 53
Lake Resources NL
Shareholder information
Lake Resources NL
Shareholder information
The shareholder information set out below was applicable as at 26 September 2017.
Distribution of equitable securities
Analysis of number of equitable security holders by size of holding:
Listed
Options
Exercise
price $0.10,
Expiry
27/08/2018
-
-
-
15
35
50
1
Unlisted
Class A
Options
Exercise
price $0.05,
Expiry
04/04/2018
Unlisted
Class C
Options
Exercise
price $0.05,
Expiry
30/11/2018
1
-
-
-
12
13
1
1
-
-
1
11
13
1
Unlisted
Class D
Options
Exercise
price $0.05,
Expiry*
1
Unlisted
Options
Exercise
price $0.10,
Expiry
14/06/2018
-
-
-
1
11
13
1
-
-
-
7
7
-
No. of Holders:
1 to 1,000
1,001 to 5,000
5,001 to 10,000
10,001 to 100,000
100,001 and over
Total
Holding less than
a marketable
parcel
Ordinary
Shares
28
70
190
517
201
1,006
150
Performance
Rights –
Tranche 3
Expiry
04/10/2021
Performance
Rights – LTI
Expiry
14/11/2021
No. of Holders:
1 to 1,000
1,001 to 5,000
5,001 to 10,000
10,001 to 100,000
100,001 and over
Total
Holding less than
a marketable
parcel
1
-
-
-
12
13
1
-
-
-
-
-
2
-
* Expiry of the Class D Options will occur 18 months after the condition, being the approval for exploration of 50% of Jujuy
province.
54 Lake Resources – Annual Report 2017
50
Lake Resources NL
Shareholder information
Lake Resources NL
Shareholder information
Equity security holders
Twenty largest quoted equity security holders
The names of the twenty largest security holders of quoted equity securities are listed
below:
Ordinary shares
% of
total
shares
issued
Number held
202 LIMITED
MS JUSTINE MICHEL
MR KERRY WILLIAM JOHN HARRIS & MISS KATRINA FOURRO
OUTBACK FORMWORK PTY LTD
MR STEPHEN PROMNITZ
BUSHFLY AIR CHARTER PTY LTD
M & E EARTHMOVING PTY LTD
RAYMOND JAMES
KEMKAY PTY LTD
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
FLUID INVESTMENTS PTY LTD
MR BENJAMIN SKUBRIS
MS AINSLEY RUTH WILLIAMS
ROTOITI VENTURES PTY LTD
MR JAMES GRAHAM CLAVARINO
COVE STREET PTY LTD
INVIA CUSTODIAN PTY LIMITED
MRS ELIZABETH MARGARET GILCHRIST
NATIONAL NOMINEES LIMITED
MR DAVID FRANCIS SCHWEDE & MRS JANINE ANN SCHWEDE
13,190,758
10,678,893
10,000,000
9,498,936
6,255,078
5,500,000
5,263,158
5,208,334
5,122,560
4,711,811
4,413,334
4,005,692
3,439,584
3,125,000
3,118,490
2,864,584
2,846,705
2,790,730
2,789,561
2,770,000
5.80
4.69
4.40
4.18
2.75
2.42
2.31
2.29
2.25
2.07
1.94
1.76
1.51
1.37
1.37
1.26
1.25
1.23
1.23
1.22
107,593,208
47.30
51
Lake Resources – Annual Report 2017 55
Lake Resources NL
Lake Resources NL
Shareholder information
Shareholder information
Equity security holders
Twenty largest quoted equity security holders
The names of the twenty largest security holders of quoted equity securities are listed below:
Listed Options
% of total
Listed
Options
issued
Number held
FIRST INVESTMENT PARTNERS PTY LTD
MR BENJAMIN SKUBRIS
MR ADAM FURST
ASENNA WEALTH SOLUTIONS PTY LTD
QUID CAPITAL PTY LTD
BNP PARIBAS NOMINEES PTY LTD
SUPER MSJ PTY LTD
MR NEVRES CRLJENKOVIC
COMSEC NOMINEES PTY LIMITED
S3 CONSORTIUM PTY LTD
MR LIAN HEO DING
MS JUSTINE MICHEL
MR PHILLIP DICKINSON
CHRISTOPHER STEWART MACDONALD&KYLIE JANE MACDONALD
MR BART ADSON
MRS SRADDHA NITESHKUMAR PATEL
CRLJENKOVIC SUPER FUND PTY LTD
MR CHAI QUANG EAM & MRS SIVHUONG TANG
MRS KEHINDE FALADE
JASON PETERSON & LISA PETERSON J&L PETERSON S/F
TIC-TACK-TOE PTY LTD
MR BRETT JAMES RUDD
A & J TANNOUS NOMINEES PTY LTD
COLVIC PTY LTD
BL CAPITAL PTY LTD
MR VINCENT DAVID MASCOLO
MR STEVEN JOHN DIGGERMAN
2,668,100
1,500,000
1,337,000
1,180,000
1,000,000
800,000
800,000
660,000
600,000
500,000
500,000
500,000
500,000
480,000
422,950
411,900
355,250
320,000
311,000
300,000
300,000
290,000
245,500
215,000
200,000
200,000
200,000
13.79
7.75
6.91
6.10
5.17
4.13
4.13
3.41
3.10
2.58
2.58
2.58
2.58
2.48
2.19
2.13
1.84
1.65
1.61
1.55
1.55
1.50
1.27
1.11
1.03
1.03
1.03
Unquoted equity securities
16,796,700
86.80
$0.05 UNLISTED OPTIONS EXPIRY 04/04/2018
$0.05 UNLISTED OPTIONS, EXPIRY 30/11/2018
$0.05 UNLISTED OPTIONS, EXPIRY*
$0.10 UNLISTED OPTIONS, EXPIRY 14/06/2018
PERFORMANCE RIGHTS – TRANCHE 3
PERFORMANCE RIGHTS - LTI
25,000,000
6,250,000
6,250,000
1,539,250
12,500,000
8,500,000
1
* Expiry of the Class D Options will occur 18 months after the condition, being the approval
for exploration of 50% of Jujuy province.
The following persons holds 20% or more of unquoted equity securities:
Name
Class
Number held
SIMON WILLIAM TRITTON
STEPHEN PROMNITZ
$0.10 UNLISTED OPTIONS EXPIRY 14/06/2018
PERFORMANCE RIGHTS – LTI
400,000
7,500,000
52
56 Lake Resources – Annual Report 2017
Lake Resources NL
Shareholder information
Lake Resources NL
Shareholder information
Substantial holders
Substantial holders in the company are set out below:
LAMBRECHT INVESTMENT TRUST
WILLATON PROPERTIES PTY LTD
KERRY WILLIAM JOHN HARRIS & KATRINA FOURRO ,DIG DEEP S/F A/C.
* based on substantial shareholder notices lodged with the ASX
Voting rights
Voting rights are as set out below:
Ordinary
shares
Number held
11,033,334
8,833,334
9,993,334
6.38
5.11
5.78
Ordinary shares
On a show of hands every member present at a meeting in person or by proxy shall have one vote and upon a poll each share
shall have one vote.
Options
All quoted options do not carry any voting rights.
Lake Resources – Annual Report 2017 57
Lake Resources NL
Schedule of tenements
Lake Resources NL
Schedule of tenements
TOTAL NUMBER TENEMENTS:
58
TOTAL AREA TENEMENTS:
100,721 Ha
REF
TENEMENT NAME
NUMBER
AREA Ha
INTEREST
%
PROVINCE
STATUS
OLAROZ - CAUCHARI
AREA
Cauchari Bajo I
Cauchari Bajo II
Cauchari Bajo III
Cauchari Bajo IV
Cauchari Bajo V
Cauchari Bajo VI
Cauchari Centro I
Cauchari Centro II
Cauchari Centro III
Cauchari Centro IV
Cauchari West I
Cauchari West II
Olaroz Centro I
Olaroz Centro II
Olaroz Centro III
Olaroz Centro IV
Olaroz East I
Olaroz East II
Olaroz East III
Olaroz East IV
Olaroz East V
PASO AREA
Paso I
Paso II
Paso III
Paso IV
Paso V
Paso VI
Paso VII
Paso VIII
Paso IX
Paso X
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
Jujuy
Jujuy
Jujuy
Jujuy
Jujuy
Jujuy
Jujuy
Jujuy
Jujuy
Jujuy
Jujuy
Jujuy
Jujuy
Jujuy
Jujuy
Jujuy
Jujuy
Jujuy
Jujuy
Jujuy
Jujuy
Jujuy
Jujuy
Jujuy
Jujuy
Jujuy
Jujuy
Jujuy
Jujuy
Jujuy
Jujuy
Application
Application
Application
Application
Application
Application
Application
Application
Application
Application
Application
Application
Application
Application
Application
Application
Application
Application
Application
Application
Application
Application
Application
Application
Application
Application
Application
Application
Application
Application
Application
2156-P-2016
2157-P-2016
2158-P-2016
2155-P-2016
2154-P-2016
2159-P-2016
2150-P-2016
2151-P-2016
2152-P-2016
2153-P-2016
375
363
125
30
952
32
32
10
10
10
2160-P-2016
1938
2161-P-2016
2163-D-2016
10
35
2164-D-2016
268
2165-D-2016
2166-D-2016
2167-D-2016
2168-D-2016
2169-D-2016
2170-D-2016
2171-D-2016
2135-P-2016
2136-P-2016
2137-P-2016
2138-P-2016
2139-P-2016
2140-P-2016
2141-P-2016
2142-P-2016
2143-P-2016
2144-P-2016
25
32
3344
2072
3033
3034
3007
3482
3196
2950
2985
3195
2210
3227
3070
3321
1913
54
58 Lake Resources – Annual Report 2017
Lake Resources NL
Schedule of tenements
Lake Resources NL
Schedule of tenements
REF
TENEMENT NAME
NUMBER
AREA Ha
INTEREST
%
PROVINCE
STATUS
KACHI AREA
Kachi Inca
Kachi Inca I
Kachi Inca II
Kachi Inca III
Kachi Inca IV
Kachi Inca V
Kachi Inca VI
Dona Amparo I
Dona Carmen
Debbie I
Divina Victoria I
Daniel Armando
Daniel Armando II
Maria Luz
Maria II
Maria III
Morena 1
Morena 2
Morena 3
Morena 6
Morena 7
Morena 8
Morena 12
Morena 13
Pampa I
Pampa II
Pampa III
13-D-2016
16-D-2016
17-D-2016
47-M-2016
46-M-2016
45-M-2016
44-M-2016
22-D-2016
24-D-2016
21-D-2016
25-D-2016
23-D-2016
97-M-2016
34-M-2017
14-D-2016
15-D-2016
72-M-2016
73-M-2016
74-M-2016
75-M-2016
76-M-2016
77-M-2016
78-M-2016
79-M-2016
129-S-2013
128-S-2013
130-S-2013
1273
2880
2823
3354
186
310
110
3000
873
1501
1265
2115
1387
2573
888
1395
3024
2989
3007
1606
2805
2961
2704
3024
2312
1119
477
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
Catamarca
Granted
Catamarca
Granted
Catamarca
Granted
Catamarca
Granted
Catamarca
Application
Catamarca
Application
Catamarca
Granted
Catamarca
Granted
Catamarca
Granted
Catamarca
Granted
Catamarca
Granted
Catamarca
Granted
Catamarca
Granted
Catamarca
Application
Catamarca
Granted
Catamarca
Granted
Catamarca
Granted
Catamarca
Granted
Catamarca
Granted
Catamarca
Granted
Catamarca
Granted
Catamarca
Granted
Catamarca
Granted
Catamarca
Granted
Catamarca
Granted
Catamarca
Granted
Catamarca
Granted
58
100721
100
CATAMARCA
PEGMATITES
Petra I, II, III, IV
Petra V, VI, VII, VIII
Aguada I, II, III, IV
OPTION
Cateos
Cateos
Minas
40000
30000
9500
option
option
option
Catamarca
Catamarca
Catamarca
Granted
Application
Application
Lake Resources – Annual Report 2017 59
Lake Resources NL
Schedule of tenements
Lake Resources NL
Schedule of tenements
REF
TENEMENT NAME
NUMBER
AREA Ha
INTEREST
%
PROVINCE
STATUS
OLAROZ - CAUCHARI & PASO REAPPLICATION AREA
MASA 1
MASA 2
MASA 3
MASA 4
MASA 5
MASA 6
MASA 7
MASA 8
MASA 9
MASA 10
MASA 11
MASA 12
MASA 13
MASA 14
MASA 15
MASA 16
MASA 17
MASA 18
MASA 19
MASA 20
MASA 21
MASA 22
MASA 23
2223-M-2016
2224-M-2016
2225-M-2016
2226-M-2016
2227-M-2016
2228-M-2016
2229-M-2016
2230-M-2016
2231-M-2016
2232-M-2016
2233-M-2016
2234-M-2016
2235-M-2016
2236-M-2016
2237-M-2016
2238-M-2016
2239-M-2016
2240-M-2016
2241-M-2016
2242-M-2016
2243-M-2016
2244-M-2016
2245-M-2016
375
363
125
952
1937
268
2072
2950
2985
2210
1913
3000
3000
3000
3000
3000
3000
3000
3000
3000
3000
2548
2406
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
Jujuy
Jujuy
Jujuy
Jujuy
Jujuy
Jujuy
Jujuy
Jujuy
Jujuy
Jujuy
Jujuy
Jujuy
Jujuy
Jujuy
Jujuy
Jujuy
Jujuy
Jujuy
Jujuy
Jujuy
Jujuy
Jujuy
Jujuy
Application
Application
Application
Application
Application
Application
Application
Application
Application
Application
Application
Application
Application
Application
Application
Application
Application
Application
Application
Application
Application
Application
Application
23 Lease Applications
51104 Ha
100% LKE
60 Lake Resources – Annual Report 2017
56
ASX: LKE
PRIME LITHIUM PROJECTS
AMONGST THE MAJORS
4 KEY PROJECTS
BRINE & HARD ROCK
NEXT TO MAJORS
IN LITHIUM TRIANGLE
LARGEST & LOWEST
COST Li PRODUCTION
www.lakeresources.com.au
LAKE RESOURCES
Suite 2, Level 10
70 Phillip Street,
Sydney NSW 2000
+61 2 9188 7864
www.lakeresources.com.au
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