lakeresources.com.au
LAKE RESOURCES ANNUAL REPORT 2022
b
CORPORATE DIRECTORY
DIRECTORS
Stuart Crow
Executive Chairman
Nicholas Lindsay
Executive Technical Director
Robert Trzebski
Non-Executive Director
Amalia Saenz (appointed 28 July 2021)
Non-Executive Director
David Dickson (appointed
15 September 2022)
Managing Director & CEO
COMPANY SECRETARY
Peter Neilsen
PRINCIPAL REGISTERED OFFICE AND
PRINCIPAL PLACE OF BUSINESS
Level 5, 126 Phillip Street
Sydney NSW 2000
Tel: +61 2 9299 9690
SOLICITORS
HopgoodGanim Lawyers
Level 8, Waterfront Place, 1 Eagle Street
Brisbane Qld 4000
SHARE REGISTRY
Automic Pty Ltd
GPO Box 5193,
Sydney, NSW, 2001
Tel: 1300 288 664
AUDITOR
BDO Audit Pty Ltd
Level 10, 12 Creek Street
Brisbane Qld 4000
BANKERS
National Australia Bank
STOCK EXCHANGE LISTINGS
Australian Securities Exchange
(ASX code: LKE)
OTCQB: LLKKF
WEBSITE ADDRESS
www.lakeresources.com.au
1
FY2022
HIGHLIGHTS
Lake promoted to benchmark
S&P/ASX200 index, reflecting substantial
growth in market value
‘TARGET 100’ strategy
initiated, targeting 100,000
tonnes per annum of battery-
grade lithium production
by 2030
Offtake and
investment CFA’s
signed with blue-chip
companies spanning Asia,
Europe and North America
UK and Canadian
export agencies
indicate potential to
provide 70% of Kachi
funding requirements
Shareholders back Lake with successful
bonus option issues, delivering valuable
funding for project expansion.
2
LAKE RESOURCES ANNUAL REPORT 2022 CONTENTS
Chairman’s Review
Directors’ Report
Auditor’s Independence Declaration
Consolidated Statement of Profit or Loss and other Comprehensive Income
Consolidated Statement of Financial Position
Consolidated Statement of Changes in Equity
Consolidated Statement of Cash Flows
Notes to the Consolidated Financial Statements
Directors’ Declaration
Independent Auditor’s Report
2022 Corporate Governance Statement
Additional ASX Information
Mineral Resource
Schedule of Tenements
5
8
45
46
47
48
49
50
100
101
104
114
118
119
3
LAKE RESOURCES –
SUSTAINABLE, HIGH PURITY LITHIUM
Lake Resources (ASX:LKE; OTC:LLKKF) is pursuing the production of sustainable,
high purity lithium using ion exchange technology.
Lake aims to deliver a high purity, battery-grade product
with minimal environmental impact, offering substantial
ESG benefits.
Tier 1 EV and battery makers have been seeking more
sustainable, responsibly sourced materials in their supply
chain, and this is driving demand for Lake’s product.
The Company is finalising a definitive feasibility study for
the production of 50,000 tonnes per annum (tpa) LCE at its
Kachi Lithium Project.
Added to its other lithium projects of Cauchari, Olaroz and
Paso, as part of ‘TARGET 100’ Lake is planning 100,000 tpa
production by 2030 in Argentina’s ‘Lithium Triangle,’ where
40% of the world’s lithium is produced at the lowest cost.
With analysts pointing to an increasing supply deficit for
battery-quality lithium, Lake’s projects are in the right
location at the right time as we look to start development
towards production.
“With analysts pointing
to an increasing supply
deficit for battery-quality
lithium, Lake’s projects
are in the right location
at the right time as we
look to start development
towards production.”
4
LAKE RESOURCES ANNUAL REPORT 2022 CHAIRMAN’S REVIEW
To My Fellow Shareholders
Export agency funding
What a year it has been for Lake and the lithium sector.
It gives me great pleasure to report on your Company’s
progress in what has been a transformational year in
Lake’s history.
Lake’s inclusion in the benchmark S&P/ ASX200 index
in June 2022 followed a year of substantial growth and a
rerating by investors seeing potential in the Company’s
assets as we rapidly move towards production.
The growth in your Company’s valuation reflects not only an
upturn in the lithium market, but tangible accomplishments
by your Board and management that have positioned Lake
well for further growth in the years ahead.
I will now briefly review some of the year’s highlights for Lake.
TARGET 100 initiated
Lake aims to be one of the world’s significant producers
of battery-grade, sustainably sourced lithium and that is
exactly what ‘TARGET 100’ will deliver.
Announced in February 2022, TARGET 100 has an aspirational
goal of producing 100,000 tonnes per annum (tpa) of high
purity lithium by 2030, by fast-tracking the Company’s
portfolio of assets in Argentina into production to take
advantage of the current and predicted deficit in supply over
the next 10 or so years.
Lake’s flagship Kachi Lithium Project has been the initial
focus, with a definitive feasibility study (DFS) underway to
produce 50,000 tpa of lithium carbonate.
Concurrently, drilling at Kachi aims to support our planned
production targets, with the aim of expanding and upgrading
the resource to a higher category and scale.
The DFS is expected around the end of calendar 2022 and
I am confident of a positive result for shareholders even
though slightly delayed by test work and disruptions
through 2022.
TARGET 100 also includes Lake’s other 100 per cent owned
projects in Argentina’s Jujuy Province, comprising the Olaroz,
Cauchari and Paso projects.
Lake will bring forward development of these projects by
accelerating drilling and testing programs leading into
anticipated additional feasibility studies.
Drilling commenced in February and is advancing at
the Olaroz, Cauchari and Paso projects, with assay
results pending.
TARGET 100 is a statement of Lake’s ambition to become a
significant player in the supply of sustainable, high purity
lithium and we are well on track to achieve our targets.
Securing low-cost funding for Lake’s project development
is beneficial, particularly during a period of rising global
inflation and interest rates.
In August 2021, Lake secured indicative terms from UK
Export Finance (UKEF), Britain’s official export credit agency,
which signed an Expression of Interest (EOI) to fund 70
per cent of the capital expenditure (capex) to build the
Kachi project.
Whilst providing indicative support for Lake’s clean lithium
project, the proposed project finance delivers a significantly
lower cost of capital than traditional financing structures.
The funding also reflects Kachi’s significant ESG benefits
for stakeholders, amid the global drive towards net
zero emissions.
Just a month later, Canada’s export credit agency, Export
Development Canada, provided a similar Letter of Interest to
work alongside UKEF in providing the 70 per cent capex for
Kachi’s project funding.
The lower interest rates on offer and longer repayment terms
associated with export credit agency funding further adds to
its benefits for shareholders.
Lake welcomes such backing from Britain and Canada as a
sign of their confidence in our projects. The Board is working
to convert these indicative offers into binding commercial
agreements ahead of the start of production at Kachi. We
anticipate a Final Investment Decision (FID) around the
middle of 2023.
Offtake, investment agreements
Global demand for lithium continues to accelerate, with
automakers looking to secure supply of key battery materials
in order to achieve electric vehicle (EV) production targets.
As a near term supplier of sustainably produced, battery
quality lithium, Lake continues to receive numerous
approaches from automakers, battery makers and others
seeking to secure our ESG friendly product.
The Board is focused on ensuring any such agreement
maximises the benefits for shareholders, given the
competition for our assets.
Subsequent to financial year-end, in October 2022
Lake announced a conditional framework agreement
(CFA) delivering strategic investments and offtake with
Amsterdam-based WMC Energy, followed by a similar CFA
with SK On, an affiliate of South Korea’s SK Group.
These agreements cover up to 50,000 tpa of Kachi lithium
production and provide in excess of A$350m of equity
upon achieving a number of conditions precedent as we
move towards FID, at which point your Company will be fully
funded into production.
5
These agreements show the strength of global demand
for Lake’s product, from blue-chip companies across Asia,
Europe and North America. We welcome the interest from our
new long-term partners, WMC Energy and SK On.
stronger financial position. As at financial year-end, the
Company had around A$175 million in cash, financing Lake
through to Final Investment Decision (FID) and construction
finance, including Kachi’s DFS.
Lake will continue to update the market on the
implementation of these agreements, which have positioned
the Company favourably to scale up environmentally
responsible production across all projects.
Having such funding at hand is particularly significant given
recent financial market conditions and puts your Company
in a very strong position to grow shareholder value.
Shareholder support
Lake’s achievements would not have been possible without
the support of our shareholders. A number of significant
capital raisings were conducted during the financial year
to sustain the development of our flagship Kachi project
and I would like to thank investors for supporting Lake’s
growth plans.
Lake’s shareholders also responded strongly to the
Company’s bonus option offer announced in July 2021. Some
78 per cent of these bonus options were converted, providing
nearly A$30 million for the Company. Further bonus options
added an extra A$64 million, meaning that shareholders
provided nearly A$100 million in funding. Thank you for your
ongoing support.
This was a massive vote of confidence in Lake, enabling the
Company to fund our development plans while protecting
shareholder equity. Your Company has never been in a
Board, management changes
Lake strengthened our Board and management team during
the past financial year, facilitating the Company’s move
towards production.
In July 2021, Peter Neilsen was appointed as Lake’s new
Chief Financial Officer and Joint Company Secretary,
with a key focus on driving Lake’s panel of international
project financiers to successfully secure funding for
Kachi’s development.
In November 2021, Lake appointed Argentina-based
Gautam Parimoo as Chief Operating Officer, tasked with
ensuring a measured and collaborative approach to project
development, including strong local engagement.
Lake’s Argentina-based team continues to expand, and the
Company further strengthened our Argentine representation
with the July 2021 appointment of experienced Buenos Aires-
based lawyer, Sra. Amalia Saenz as a Non-Executive Director.
6
LAKE RESOURCES ANNUAL REPORT 2022 Subsequent to financial year-end, in August 2022
Lake further boosted our management team with the
appointment of experienced senior mining executive, Sean
Miller as Corporate Development Officer, tasked with fast-
tracking exploration across Lake’s Jujuy brine projects.
With Lake now aligning operations to serve the critical North
American supply chain, we were delighted to recently appoint
a new CEO and Managing Director, David Dickson, to drive
Lake’s transition towards production.
Mr Dickson has more than 30 years’ experience in
engineering, construction and EPC cost management across
the energy sector, with a proven track record in successfully
delivering multi-billion dollar resource projects.
His experience and track record will be crucial for Lake as we
advance towards our next development milestones.
Lake plans further new international appointments to the
Board covering such areas as ESG, governance, finance
and audit, as we strengthen our team for the next stage
of development.
I would also like to thank Lake’s staff, suppliers, project
partners, contractors and everyone associated with the
Company for your sterling efforts over the past year. It’s been
a great year and has set Lake up for an even more exciting
year ahead!
Strong outlook
Lithium prices have soared over the past year as supply
remains constrained and demand accelerates. Demand for
lithium-ion batteries is expected to grow 20-fold by 2050,
according to Benchmark Mineral Intelligence (BMI). BMI
also projects 74 new lithium mines with average production
of 45,000 tonnes are needed by 2035 simply to meet
existing demand.
This reflects the global EV revolution, with EV sales expected
to accelerate from around 9 per cent of the global car market
in 2021 to almost 40 per cent by 2030.
As a result, analysts point to a continued supply deficit for
lithium, requiring new projects such as Lake’s.
In this environment Lake is in an excellent position,
particularly given our highly efficient and ESG friendly
sustainable extraction process and the scale of our wholly
owned projects.
A number of milestones lie ahead for Lake in fiscal 2022,
including first production from the demonstration
plant at Kachi, the successful completion of the DFS, an
Environmental and Social Impact Assessment (ESIA) and the
delivery of our first ever Sustainability Report.
Yet with supportive financiers and investors, an experienced
team at the helm and very strong demand for our product, I
have every confidence we have an outstanding year ahead.
Thank you again for your ongoing support and I look forward
to an exciting and remarkable year ahead as we move
towards the commencement of the construction phase of
the Kachi project.
Yours sincerely
Stu Crow
Executive Chairman
7
Directors’ Report
For the year ended 30 June 2022
Your Directors present their report on the Consolidated entity consisting of Lake Resources NL and the entities it controlled at
the end of, or during, the year ended 30 June 2022.
Directors and company secretary
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, Executive Chairman
N. Lindsay, Executive Technical Director
R. Trzebski, Non Executive Director
S. Promnitz, Managing Director (resigned 17 June 2022)
A. Saenz, Non Executive Director (appointed 28 July 2021)
D.Dickson, Managing Director (appointed 15 September 2022)
The company secretary and Chief Financial Officer is Mr Peter Neilsen. Mr Peter Neilsen was appointed to the position of
company secretary and Chief Financial Officer in July 2021 after Mr Garry Gill resigned from the position on the 13 July 2021.
Principal activities
During the year the principal continuing activities of the Consolidated entity consisted of:
(a) Exploration and development of lithium brine projects in Argentina.
Dividends
There were no dividends paid, recommended, or declared during the current or previous financial year.
Review of operations
The loss from ordinary activities after income tax amounted to $5,683,095 (2021 loss: $2,894,223).
Corporate Strategy
As a clean lithium developer Lake Resources NL (ASX: LKE; OTC:LLKKF) is bringing forward a US$15 million program across its
three 100-percent owned projects - Olaroz, Cauchari and Paso - for drilling and brine testing to fast-track these projects into
feasibility studies in the TARGET 100 Program.
Lake has initiated an expansion and integration strategy to fast-track its portfolio of assets in Argentina to deliver the TARGET
100 Program - being the aspirational goal to produce annually 100,000 tonnes of high purity lithium to market by 2030.
A separate exploration and testing team dedicated to rapid development across Lake’s three other brine projects in Argentina
will be utilising the comprehensive data set developed during the Kachi project’s direct extraction processing test work.
The drilling program has started with the first rotary well of a 4000m 10-hole program, in the northern areas of the Olaroz
leases, which cover a 30km long area on the eastern side of established lithium producers. These projects are located in Jujuy
province, in the north-west of Argentina, close to the Allkem (Orocobre) Olaroz operation and the Lithium Americas - Ganfeng JV
Cauchari project. The drill wells are designed to quickly quantify brines identified, develop the aquifers, and conduct pumping
tests and provide data for initial feasibility studies. Rotary wells will be followed later by diamond holes.
Brines will be sampled and tested with environmentally friendly direct lithium extraction method, similar to previous work
conducted on Kachi project lithium brines.
8
LAKE RESOURCES ANNUAL REPORT 2022 Directors’ Report
For the year ended 30 June 2022
Corporate Strategy (continued)
Direct lithium extraction, to be used on Lake’s multiple lithium projects, can deliver scalable projects faster to market and
supply rapidly increasing demand.
Discussions with potential partners to assist the fast-tracking of these assets into production is underway as part of Lake’s
ongoing discussions with battery metals customers and Lake’s desire to become an integrated and valuable part of the global
supply chains.
The four reasons in making the formal decision to expand the Kachi project has also given the company confidence to fast-
track expansion and integration of Lake’s other assets in Argentina:
1.
2.
the increasing demand by prospective offtake partners for a secure supply chain of environmentally friendly high purity
lithium carbonate;
the indicative support to fund new projects by Export Credit Agencies and the international bank panel. The UK and Canada
Export Credit Agencies have already indicated a willingness to project debt finance around 70 percent of the Kachi project’s
capital requirements (ASX announcement 11 Aug 2021);
3.
the supportive investment policies of the Argentine Government who have announced a process to lower export taxes as
part of the Strategic Plan for Mining Development;
This, combined with increasing customer and consumer scrutiny around the environmental credentials of lithium production;
and concerns about security of supply has given us the confidence to fast-track these developments.
Operations
Overview of Operations for the Year
Kachi Lithium Brine Project - Catamarca Province, Argentina
Lake’s 100%-owned Kachi Lithium Brine Project (Kachi) in Catamarca province, NW Argentina, covers an entire large lithium
brine bearing basin with 39 mining leases (74,000 hectares). Lake aims to develop the project into production of 50,000
tpa battery quality lithium carbonate using the highly efficient ion exchange technology method from Lilac Solutions, as
established in the Kachi Pre-Feasibility Study (PFS). Kachi has a large indicated and inferred resource of 4.4 million tonnes LCE
(Indicated 1.0Mt, inferred 3.4Mt) (refer ASX announcement 27 November 2018).
During the year ended 30 June 2022, Lake continued a Definitive Feasibility Study (DFS) with Hatch as lead consultant, the
study is progressing with an expected release to market Q4 2022. The Environmental and Social Impact Study (ESIA) has
continued in 2022 with Knight Piesold with a final study expected to be completed in Q4 2022.
An expansion case to double production to 51,000 tpa LCE has been initiated due to increasing demand. Additional drilling has
continued throughout 2022 at the Kachi Project to support the expansion of future production, targeting 50,000tpa LCE. A four
well, 1,600m drill program aims to upgrade Kachi’s 4.4 Mt LCE Total Resource from M&I Resources to Reserves for Kachi’s DFS
and for production expansion study (refer ASX announcements 7 July 2021 and 31 July 2021) is nearing completion.
99
Directors’ Report
For the year ended 30 June 2022
Operations (continued)
Overview of Operations for the Year (continued)
An efficient, disruptive clean direct lithium extraction (DLE) technology, that can produce sustainable high purity lithium, with
a smaller environmental footprint, has been developed by our technology partner, Lilac Solutions Inc, in California (Lilac). Lilac’s
DLE process adapts a widely used water treatment process called ion exchange to produce lithium. This allows the return of
virtually all water (brine) to its source without changing its chemistry, apart from lithium removal. The land use is significantly
reduced due to the removal of evaporation ponds and the plan to use solar hybrid power ensures a low carbon footprint. Battery
quality lithium carbonate (99.97% purity) has been produced from Kachi brine samples with very low impurities and high (80-
90%) lithium recoveries (refer ASX announcement 20 October 2020). Test results were incorporated into the PFS. The Lilac’s
direct extraction pilot plant modules in California, using brines from Lake’s Kachi Lithium Brine Project, have produced lithium
chloride for conversion into lithium carbonate. Hazen Research Inc, an independent assay laboratory, produced high purity
battery quality lithium carbonate (99.97%).
During the past year a demonstration plant was planned and construction initiated with demonstration modules shipped into
Argentina in the final months of FY2021/22. The construction of the demonstration plant is now complete and is now in final
stages of commissioning in preparation to test Kachi brines in October 2022.
Olaroz/Cauchari & Paso Lithium Brine Projects - Jujuy Province, Argentina
Lake holds mining leases over ~45,000 hectares in two areas in Jujuy Province in NW Argentina - Lake’s Olaroz and Cauchari
Lithium Brine Projects and the Paso Lithium Brine Project, 100% owned by Lake.
The Cauchari Lithium Brine Project was drilled successfully in 2019, which demonstrated that the high-grade lithium brines in
the adjoining world class project extended into Lake’s 100% owned leases, with multiple high-grade lithium brines zones over
a 506m interval (102m to 608m depth). Results ranged from 421 to 540 mg/L lithium (493 mg/L average) in detailed sampling
with higher-grade results that averaged 493 mg/L lithium over 343m (from 117m to 460m), up to 540 mg/L.
This year saw increased exploration activity across these projects as part of the company’s aim of bringing all company
projects rapidly towards development as the global lithium market moved into a deficit that many commentators believe will
last well into the next decade as demand for lithium grows exponentially. Post year end the company employed Mr Sean Miller
to oversee and coordinate the rapid advancement of exploration across these projects. Various lithium extraction methods will
be tested on lithium brine samples from the Cauchari, Olaroz and Paso projects as drilling continues, this will then be followed
by scoping studies for future production on all projects as they are upgraded towards development, including environmental
impact studies and increased drilling for resource statement purposes.
Corporate and Financial
Advances are continuing towards future clean lithium production from Lake’s flagship Kachi Lithium Brine Project in
Catamarca Province.
Project Finance (Kachi)
The UK Export Finance (UKEF), the Export Credit Agency (ECA) of the United Kingdom, provided a strong Expression of Interest
to support approximately 70% of the total finance required for Lake’s Kachi Project, subject to standard project finance terms,
including, among others, suitable structured offtake contracts, the successful completion of Kachi’s Definitive Feasibility
Study (DFS), and an Environmental and Social Impact Assessment (ESIA) to Equator Principles (refer ASX announcement 11
August 2021).
10
LAKE RESOURCES ANNUAL REPORT 2022 Directors’ Report
For the year ended 30 June 2022
Operations (continued)
Corporate and Financial (continued)
The ECA led project finance will deliver a significantly lower cost of capital than traditional financing structures, with the
principal repaid over an 8.5-year period post-construction.
UKEF indicated that debt finance is available to support expanded production to 51,000 tpa of high purity lithium carbonate
equivalent. UKEF’s Expression of Interest will encourage a UK-led sourcing strategy while allowing flexibility for other leading
ECAs to participate.
Canada’s Export Credit Agency, EDC, provided a Letter of Interest to potentially work alongside UKEF to support approximately
70% of the total finance required for Lake’s Kachi Project, subject to similar standard project finance terms as UKEF (refer ASX
announcement 28 September 2021). EDC indicated the ability to provide direct lending to the project up to US$100 million,
subject to sourcing requirements.
Equity raising during the year
Significant capital raisings and options conversions were conducted during the financial year to sustain the development of
the Kachi Project.
On the 28 July 2021 Lake announced a pro-rata non-renounceable issue to eligible shareholders of one free bonus option
for every ten shares held on the record date of 24 August 2021 at the exercise price of $0.35 per bonus option (Bonus Option
Offer), to be exercised before 5:00pm on the bonus option expiry date (15 October 2021). One further free additional option at
the exercise price of $0.75 per additional option was to be provided for every bonus option exercised prior to the bonus option
expiry date of 15 October 2021 (Additional Option Offer) to be exercised by the additional option expiry date (15 June 2022).
On 30 August 2021 110,416,119 bonus options were issued at the exercise price of $0.35 per bonus option and an expiry date
of 15 October 2021. In late October 2021, the conversion was completed of one free bonus option for every ten shares held on
24 August 2021 by eligible shareholders at the exercise price of $0.35 per bonus option, of which, approximately 78% were
converted (86,096,394 new LKE shares), providing A$29,366,483 million to the cash position of the Company.
Further 1-for-1 additional bonus options were issued (86,096,394 listed options; security code LKEOC), with an exercise price of
A$0.75 and an expiry date of 15 June 2022. These additional options were listed and subsequently converted, adding a further
A$64 million to cash reserves by the end of June 2022. Of the additional bonus options issued 3,251,249 were cancelled upon
failure to exercise.
On 11 March 2022 the company undertook the issue of 40,000,000 fully paid ordinary shares pursuant to its At-the-Market
Subscription Agreement (“ATM”) with Acuity Capital. The Company previously entered into a Controlled Placement Agreement
in August 2018 with Acuity Capital Pty Ltd, which was later extended until 31 January 2023. On 15 November 2021, the Company
announced that the funding amount had been increased to A$80,000,000 to reflect the change in the Company’s market value.
Cash position
Lake held cash of A$175,444,065 as at 30 June 2022 (in AUD, USD and Argentine Pesos) with no debt. The Company is financed
through to the Final Investment Decision (FID) and construction finance phase, including the Definitive Feasibility Study (DFS)
for the Kachi project.
1111
Directors’ Report
For the year ended 30 June 2022
Impact of COVID-19 on Operations
The impact of the Coronavirus (COVID-19) pandemic is ongoing and while it has been financially neutral for the Consolidated
entity up to 30 June 2022, it is not practicable to estimate the potential impact, positive or negative, after the reporting date.
The situation has improved in relation to restrictions on travel based on high vaccination rates achieved in Australia and
Argentina. Corporate guidelines for employee travelling for business, are also documented per Lake Resources’ approved travel
policy. Further information on the impact is detailed in Note 1(iv) of the financial statements.
Significant changes in the state of affairs
Significant changes in the state of affairs of the Consolidated entity during the financial year were as follows:
Lake has strengthened its management team in Argentina with the appointment of Mr. Gautam Parimoo as Chief Operating
Officer (COO) on the 25 October 2021. His immediate focus is to drive the Company’s Kachi Lithium Brine Project from
feasibility through construction and commissioning into steady state production.
Other appointments made during the financial year include the appointment of Peter Neilsen as Chief Financial Officer (CFO)
on 11 July 2021. A key focus of the new CFO will be to guide a panel of international project financiers to successfully secure
funding for Lake’s lithium production. His other key role will be to develop and assist Lake’s team in Argentina to organise
development activities and lithium production. He will also serve as joint Company Secretary. Amalia Saenz was appointed
to the board on 28 July 2021. She will assist Lake and its local team in Argentina in engaging with local stakeholders and
preparing for the development of clean lithium production in Argentina.
Matters subsequent to the end of the financial year
On 14th July 2022, after a brief trading halt, the Company responded to an inaccurate report issued by J Capital (a short-seller)
attacking Lake Resources over its’ new direct lithium extraction (DLE) technology, share trade disclosures, options to brokers,
and Memoranda of Understandings signed to date.
Lake reassured investors that the Lilac Solutions proprietary ion exchange technology to be used for DLE at the Kachi brine
project in Argentina, will be practical, efficient, and environmentally sustainable.
The Company also advised that non-disclosure of share trades by the former Managing Director (Stephen Promnitz),
were unapproved due to failure by the Officer to notify the Company Secretary. Options issues to brokers as part of the fee
arrangements were common practice in the industry, and that Memoranda of Understanding (MOU’s), while largely non-
binding, had been entered into with globally recognised companies for the long-term supply of a material critical to their
supply chains.
Following the resignation of the former Managing Director on 17 June 2022, the Company announced on 16th August 2022 a
notification of cessation of securities for 2,500,000 performance rights, due to conditions not being satisfied.
On 19th August 2022 the Company appointed senior mining executive Mr Sean Miller as Corporate Development Officer to fast-
track exploration across three Jujuy brine projects in Argentina - Cauchari, Olaroz and Paso projects.
At the same time, it was also confirmed that the new CEO appointment process was nearing completion, and that Lake
Resources was finalising the selection of new board members as part of the transition to a US corporate office to better align
production and key customers and markets.
12
LAKE RESOURCES ANNUAL REPORT 2022 Directors’ Report
For the year ended 30 June 2022
Matters subsequent to the end of the financial year (continued)
A six-month global search for a new CEO/MD culminated with an ASX announcement dated 7th September that Mr David
Dickson would assume the role of CEO and Managing Director. Mr Dickson is an industry leader with over 30 years’ experience
in engineering, construction, and EPC cost management, across the energy sector.
He has a proven track record in successfully delivering multibillion dollar resource projects.
On 14 September 2022 Lake Resources NL provided an update on the Kachi pilot plant in respect of progress under its Pilot
Project Agreement (dated 21 September 2021) with technology partner, Lilac Solutions Inc (Lilac). Whilst work has continued
on the Kachi project, a dispute has arisen between Lake and Lilac as to the date by which key performance milestones need
to be achieved, with Lake considering milestones to be achieved by 30 September 2022 and Lilac considering it has until 30
November 2022 to do so. To resolve the dispute, Lake has exercised its rights to have the dispute resolved either by agreement
of both Lake and Lilac or by arbitration.
Pursuant to ASX announcement on 19 September, Lake confirmed that construction of the facility to house the Lilac
demonstration plant was complete. Dry commissioning of the demonstration plant also commenced on Wednesday
September 14, with expected wet commissioning of the plant to begin on September 22. Once wet commissioning is complete,
Lilac expects to begin onsite processing of Kachi brines in the first week of October 2022. Whilst the test program is based on
operating the demonstration plant for 1000 hours it is anticipated that the first 2000 litres of lithium concentrate produced
from the demonstration plant will be sent for conversion into Lithium Carbonate once delivered. Lake proposes that this final
Lithium product will then be qualified by a tier 1 battery maker to validate product specifications. Lake confirmed offtake
discussions continue to advance and new appointments to the Lake board are in final stages of consideration.
No other matter or circumstance has arisen since 30 June 2022 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
There has been a significant expansion in battery megafactories with 225 megafactories forecast to be in operation by
2030 These facilities prefer high quality lithium products, especially with the ESG benefit that Lake’s products will provide.
A significant and growing supply deficit is forecast to develop in late 2021 through to 2022 which requires significant new
scalable supply of lithium products.
The focus for the Consolidated entity is to be a clean lithium developer utilising direct extraction technology for the
development of sustainable, high purity lithium from its flagship Kachi Project. A definitive feasibility study (DFS) is underway
on the Kachi project together with an Environmental and Social Impact Assessment (ESIA). When the studies are completed,
together with suitably structured offtake contracts, the Export Credit Agency (ECA) led project finance should be triggered
facilitating the completion of approximately 70% of the total finance required for Lake’s Kachi Project.
Lake formally partnered with Lilac for the technology and funding to develop the Kachi Project (refer ASX announcement
22 September 2021). Under the agreement, Lilac will contribute technology, engineering teams, and an on-site demonstration
plant, earning in to a maximum 25% stake in Lake’s Kachi project based on performance-based milestones. It is anticipated
that Lake will reduce its equity holding in the Kachi project as Lilac reaches these milestones.
Offtake discussions will continue which should lead to suitably structured offtake contracts for all parties.
1313
Directors’ Report
For the year ended 30 June 2022
Material Business Risks
The Group’s exploration and mining operations will be subject to the normal risks of mining and any revenues will be subject
to numerous factors beyond the Group’s control. The material business risks that may affect the Group are summarised below.
Future Capital Raisings
The Group’s ongoing activities may require substantial further financing in the future, in addition to amounts raised pursuant
the capital raising completed by the year ended 30 June. The Group will require additional funding to bring the Kachi Project
into commercial production. Any additional equity financing may be dilutive to shareholders, may be undertaken at lower
prices than the current market price and debt financing, if available, may involve restrictive covenants which limit the Group’s
operations and business strategy. Although the directors believe that additional capital can be obtained, no assurances can
be made, especially given the impact of the COVID-19 pandemic, that appropriate capital or funding, if and when needed, will
be available on terms favourable to the Company or at all. If the Company is unable to obtain additional financing as needed,
it may be required to reduce, delay or suspend its operations and this could have a material adverse effect on the Group’s
activities and could affect the Group’s ability to continue as a going concern.
Exploration Risk
The success of the Group depends on the delineation of economically mineable reserves and resources, access to required
development capital, movement in the price of commodities, securing and maintaining title to the Group’s exploration and
mining tenements and obtaining all consents and approvals necessary for the conduct of its exploration activities. Exploration
on the Group’s existing tenements may be unsuccessful, resulting in a reduction in the value of those tenements, diminution
in the cash reserves of the Group and possible relinquishment of the tenements. The exploration costs of the Group are
based on certain assumptions with respect to the method and timing of exploration. By their nature, these estimates and
assumptions are subject to significant uncertainties and, accordingly, the actual costs may materially differ from these
estimates and assumptions.
Accordingly, no assurance can be given that the cost estimates and the underlying assumptions will be realised in practice,
which may materially and adversely affect the Group’s viability. If the level of operating expenditure required is higher than
expected, the financial position of the Group may be adversely affected. The Group may also experience unexpected shortages
or increases in the costs of consumables, spare parts, plant and equipment.
Feasibility and Development Risks
It may not always be possible for the Group to exploit successful discoveries which may be made in areas in which the Group
has an interest. Such exploitation would involve obtaining the necessary licences or clearances from relevant authorities that
may require conditions to be satisfied and/or the exercise of discretions by such authorities. It may or may not be possible
for such conditions to be satisfied. Further, the decision to proceed to further exploitation may require participation of other
companies whose interests and objectives may not be the same as the Group’s. There is a complex, multidisciplinary process
underway to complete a feasibility study to support any development proposal. There is a risk that the feasibility study and
associated technical works will not achieve the results expected. There is also a risk that, even if a positive feasibility study is
produced, the project may not be successfully developed for commercial or financial reasons.
14
LAKE RESOURCES ANNUAL REPORT 2022 Directors’ Report
For the year ended 30 June 2022
Material Business Risks (continued)
Regulatory Risk
The Group’s operations are subject to various Commonwealth, State and Territory and local laws and plans, including those
relating to mining, prospecting, development permit and licence requirements, industrial relations, environment, land use,
royalties, water, native title and cultural heritage, mine safety and occupational health. Approvals, licences and permits
required to comply with such rules are subject to the discretion of the applicable government officials. No assurance can
be given that the Group will be successful in maintaining such authorisations in full force and effect without modification
or revocation.
To the extent such approvals are required and not retained or obtained in a timely manner or at all, the Group may be curtailed
or prohibited from continuing or proceeding with production and exploration. The Group’s business and results of operations
could be adversely affected if applications lodged for exploration licences are not granted. Mining and exploration tenements
are subject to periodic renewal. The renewal of the term of a granted tenement is also subject to the discretion of the relevant
Minister. Renewal conditions may include increased expenditure and work commitments or compulsory relinquishment
of areas of the tenements comprising the Group’s projects. The imposition of new conditions or the inability to meet those
conditions may adversely affect the operations, financial position and/or performance of the Group.
Occupational Health and Safety
Given the Group’s exploration activities (and especially if it achieves exploration success leading to mining activities), it
will face the risk of workplace injuries which may result in workers’ compensation claims, related common law claims and
potential occupational health and safety prosecutions. Further, the production processes used in conducting any future
mining activities of the Group can be dangerous. The Group has, and intends to maintain, a range of workplace practices,
procedures and policies which will seek to provide a safe and healthy working environment for its employees, visitors and
the community. Of particular concern will be operating and managing health and safety in an environment where COVID-19
remains a major concern.
Limited Operating History of the Group
The Group has limited operating history on which it can base an evaluation of its future prospects. If the Group’s business
model does not prove to be profitable, investors may lose their investment. The Group’s historical financial information is of
limited value because of the Group’s lack of operating history and the emerging nature of its business. The prospects of the
Group must be considered in the light of the risks, expenses and difficulties frequently encountered by companies in their
early stage of development, particularly in the mineral exploration sector, which has a high level of inherent uncertainty.
Key Personnel
In formulating its exploration programs, feasibility studies and development strategies, the Group relies to a significant extent
upon the experience and expertise of the directors and management. A number of key personnel are important to attaining the
business goals of the Group. One or more of these key employees could leave their employment, and this may adversely affect
the ability of the Group to conduct its business and, accordingly, affect the financial performance of the Group and its share
price. Recruiting and retaining qualified personnel is important to the Group’s success. The number of persons skilled in the
exploration and development of mining properties is limited and competition for such persons is strong.
1515
Directors’ Report
For the year ended 30 June 2022
Material Business Risks (continued)
Resource Estimate Risk
Resource estimates are expressions of judgement based on knowledge, experience and industry practice. These estimates
were appropriate when made but may change significantly when new information becomes available. There are risks
associated with such estimates. Resource estimates are necessarily imprecise and depend to some extent on interpretations,
which may ultimately prove to be inaccurate and require adjustment. Adjustments to resource estimates could affect the
Group’s future plans and ultimately its financial performance and value. Lithium price fluctuations, as well as increased
production costs or reduced throughput and/or recovery rates, may render resources containing relatively lower grades
uneconomic and may materially affect resource estimations.
Environmental Risk
The operations and activities of the Group are subject to the environmental laws and regulations of Australia. As with
most exploration projects and mining operations, the Group’s operations and activities are expected to have an impact on
the environment, particularly if advanced exploration or mine development proceeds. The Group attempts to conduct its
operations and activities to the highest standard of environmental obligation, including compliance with all environmental
laws and regulations. The Group is unable to predict the effect of additional environmental laws and regulations which may
be adopted in the future, including whether any such laws or regulations would materially increase the Group’s cost of doing
business or affect its operations in any area. However, there can be no assurances that new environmental laws, regulations
or stricter enforcement policies, once implemented, will not oblige the Group to incur significant expenses and undertake
significant investments which could have a material adverse effect on the Group’s business, financial condition and
performance.
Availability of Equipment and Contractors
Prior to the COVID-19 pandemic, appropriate equipment, including drill rigs, was in short supply. There was also high demand
for contractors providing other services to the mining industry. The COVID-19 pandemic has only served to exacerbate these
issues. Consequently, there is a risk that the Group may not be able to source all the equipment and contractors required to
fulfil its proposed activities. There is also a risk that hired contractors may underperform or that equipment may malfunction,
either of which may affect the progress of the Group’s activities.
Climate Change Risk
The operations and activities of the Group are subject to changes to local or international compliance regulations related to
climate change mitigation efforts, specific taxation or penalties for carbon emissions or environmental damage, and other
possible restraints on industry that may further impact the Group and its profitability. While the Group will endeavour to
manage these risks and limit any consequential impacts, there can be no guarantee that the Group will not be impacted by
these occurrences. Climate change may also cause certain physical and environmental risks that cannot be predicted by the
Group, including events such as increased severity of weather patterns, incidence of extreme weather events and longer-term
physical risks such as shifting climate patterns. All these risks associated with climate change may significantly change the
industry in which the Group operates.
Macro-Economic Risks
In 2022, the world continues to recover from the COVID-19 pandemic, with global supply chains, labour and equipment
shortages still being materially affected.
16
LAKE RESOURCES ANNUAL REPORT 2022 Directors’ Report
For the year ended 30 June 2022
Material Business Risks (continued)
Hyperinflationary pressures in Argentina for appropriately skilled labour and capital items are being seen across many
industries, including mining. Current domestic and international inflation is at levels not since the 1970’s and 1980’s, triggering
rising interest rates globally; a situation that has been driven by post pandemic issues and by spiking energy prices, triggered
by the recent conflict between Ukraine and Russia. The negative economic outlook has affected world capital markets, with
major global indices reducing by up to 20% in the first half of 2022 (S&P 500: 20.6%). These conditions are expected to persist
in the short term.
Australia now has unrestricted international borders, however further disruptions may be experienced as the pandemic moves
into the endemic phase, with waning vaccine effectiveness and possible new COVID-19 variants, which could cause subsequent
disruptions to businesses nationwide.
Environmental regulation
The Consolidated entity is subject to and compliant with all aspects of environmental regulation of its exploration and mining
activities. The Directors are not aware of any environmental law that is not being complied with.
Information on directors
Name
Title
Experience and expertise
Other current Directorships
Former Directorships (last 3 years)
Name
Title
Experience and expertise
Stuart Crow
Executive Chairman
Mr Crow has global experience in financial services, corporate finance, investor
relations, international markets, and stock broking. Stuart is passionate about
assisting emerging listed companies to attract investors and capital and has owned
and operated his own businesses in financial advisory for over 31 years.
Senior Non Executive Director Atlantic Lithium Limited (AIM & ASX)
Non Executive Chairman Ricca Resources Limited (unlisted)
Non-executive Director Todd River Resources Ltd (ASX:TRT)
Stephen Promnitz (resigned 17 June 2022)
Managing Director and CEO
Mr Promnitz led Lake since 2016, bringing natural resources and energy experience
with a focus on South America and South-East Asia, and delivered the lithium project
portfolio. Previously he was CEO of small/mid-tier companies or senior manager with
global resource companies (Rio Tinto, WMC) together with holding senior corporate
finance roles with Westpac and Citigroup.
Other current Directorships
Former Directorships (last 3 years)
None
None
1717
Directors’ Report
For the year ended 30 June 2022
Information on directors (continued)
Name
Title
Experience and expertise
Dr Nicholas Lindsay
Executive Technical Director
Dr Lindsay is an experienced mining executive, with a BSc (Hons) degree in Geology, a
PhD in process mineralogy (Metallurgy & Materials Engineering) as well as an MBA. He
has a long association with South America, where he has successfully taken companies
from inception to listing, development and subsequent acquisition such as Laguna
Resources which he led as Managing Director.
Other current Directorships
Manuka Resources (ASX:MKR)
Former Directorships (last 3 years)
None
Name
Title
Experience and expertise
Dr Robert Trzebski
Non-Executive Director
Dr. Trzebski is currently Chief Operating Officer of Austmine Ltd and holds a degree in
Geology, PhD in Geophysics, Masters in Project Management and has over 30 years
professional experience in project management and mining services.
He has considerable operating and commercial experience in Argentina and Chile, as a
Non-Executive Director of Austral Gold since 2007, listed on the ASX and TSX-V and is
Chairman of the Audit and Risk Committee. His role with Austmine has allowed him to
develop considerable contacts across the operating and technology space of the global
resources industry. Dr. Trzebski is also a fellow of the Australian Institute of Mining and
Metallurgy and is fluent in Spanish and German as well as English.
Other current Directorships
Austral Gold (ASX: AGD) appointed on 10 April 2007
Former Directorships (last 3 years)
None
18
LAKE RESOURCES ANNUAL REPORT 2022 Directors’ Report
For the year ended 30 June 2022
Information on directors (continued)
Name
Title
Experience and expertise
Amalia Saenz (appointed 28 July 2021)
Non-Executive Director
Ms. Amalia Sáenz was previously a partner at the legal firm, Zang, Bergel & Viñes, in
Buenos Aires leading the Energy and Natural Resources practice. Sra. Sáenz joined
the firm some years ago to meet increased demand from clients looking to invest in
Argentina’s natural resources space. Prior to Zang, Bergel & Viñes Ms Sáenz was with
respected legal firm Brons & Salas, in Buenos Aires, and her practice covered the full
scope of natural resources and energy and oil and gas, with specific focus on tenders,
acquisitions, financing, joint venture and operation agreements in Argentina. She is a
leading member of the Association of International Petroleum Negotiators. Also, in the
past, Ms. Sáenz was the Legal Manager with Bridas Corporation living in Central Asia
-as well in United Kingdom- experiencing working in an exploration and production
operations in a context of a mixture of cultures.
Other current Directorships
Former Directorships (last 3 years)
None
None
Note
• 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 secretaries
The Company Secretary in office until 13 July 2021 was Mr Garry Gill. Mr Gill is a chartered accountant with more than 30 years’
experience in all facets of corporate, financial and administrative functions, Mr Gill has served in a range of positions including
as Chief Financial Officer, company secretary and other senior executive positions for a number of listed and unlisted public
companies. These have included serving as finance director and company secretary of Jupiters Limited, Chief Financial Officer
or Corporate Services Manager of South Bank Corporation in Brisbane, before forming a consultancy service for small cap
ASX companies over the last decade. He has delivered improved strategic analysis and financial management, streamlined
budgets, refinancing, and stakeholder management of small/mid cap resource companies.
Mr Peter Neilsen who was appointed on 11 July 2021, is a chartered accountant with more than 20 years’ experience in all
facets of financial management, asset management and leadership. He has served in a range of positions including as Chief
Financial Officer (CFO), company secretary, finance manager and other senior executive positions for a number of listed and
unlisted companies in the energy and natural resources sector. These have included Barrick, Xstrata and Round Oak. Mr
Neilsen has been involved in reducing operation expenses up to $100M through cost analysis, performance improvements and
contract negotiations, acquisitions of up to $80M and managed revenues in excess of $5Bn.
1919
Directors’ Report
For the year ended 30 June 2022
Directors’ Interests in the Consolidated entity
At the date of this report or last date of employment, the interests of the Directors in the shares, options and performance
rights of the Consolidated entity were:
S. Crow (Executive Chairman)
S. Promnitz (Managing Director)
N. Lindsay (Executive Technical Director)
R. Trzebski (Non Executive Director)
A. Saenz (Non Executive Director)
Ordinary Shares
Options
Performance
Rights
Performance
Shares
17,919,367
10,206,150*
3,216,667
-
-
-
-
-
-
-
5,000,000
-
-
-
2,500,000
461,715
-
-
-
-
* Date refers to the 17th June as last day of employment as Director
Meetings of directors
The number of meetings of the Consolidated entity’s Board of Directors held during the year ended 30 June 2022, and the
numbers of meetings attended by each Director were:
S. Crow
N. Lindsay
R. Trzebski
A. Saenz
S. Promnitz
Held
Attended
10
10
10
9
10
10
10
9
6
9
“Held” represents the number of meetings held during the time the Director held office and was eligible to attend.
Remuneration report (Audited)
The remuneration report outlines the Director and executive remuneration arrangements for the Consolidated entity, in
accordance with the requirements of the Corporations Act 2001 and its Regulations. For the purposes of this report, Key
Management Personnel (KMP) are those persons having authority and responsibility for planning, directing and controlling the
activities of the entity, directly or indirectly, including all Directors.
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.
20
LAKE RESOURCES ANNUAL REPORT 2022 Directors’ Report
For the year ended 30 June 2022
Remuneration report (Audited) (continued)
(a) Principles used to determine the nature and amount of remuneration
The Board’s policy is to remunerate KMP at market rates for time, commitment, responsibilities, and overall performance.
The Board determines payments to the KMP and reviews their remuneration annually, based on market practice, duties,
and accountability. Independent external advice is sought when required. During the current reporting period,the Company
engaged Godfrey Remuneration Group to assist in development of short term and long-term incentives for its executives.
The Board aims to remunerate at a level that will attract and retain high calibre directors, officers, and employees. KMP are
remunerated to a level consistent with the size of the Consolidated entity.
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 Consolidated entity. However, to
align Directors’ interests with shareholder interests, the Directors are encouraged to hold shares in the Consolidated entity.
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 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 performance 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 seeks 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.
2121
Directors’ Report
For the year ended 30 June 2022
Remuneration report (Audited) (continued)
(a) Principles used to determine the nature and amount of remuneration (continued)
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.
The current non-executive directors’ fees are determined within an aggregate directors’ fee limit. The maximum current
aggregate non-executive directors’ fee limit stands at $350,000 per annum.
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 comprises four components:
• base pay and non-monetary benefits
• short-term performance incentives
• long-term performance incentives
• share-based payments, including options and performance rights
• performance shares
• relocation costs or allowances, as relevant for remote (close to site) based employees
• fringe benefits including motor vehicles, residential accommodation costs, private health insurance and private education
fees for KMP’s and their associates
• other employer remuneration including compulsory superannuation, pension fund, annual and long service leave
Elements of remuneration
Fixed annual remuneration (FR)
Fixed remuneration, consisting of base salary, superannuation, and non-monetary benefits, are generally reviewed annually by
the Board of Directors based on individual and business unit performance, the overall performance of the Consolidated entity
and comparable market remuneration. Executives may receive their fixed remuneration in the form of cash or other fringe
benefits (for example motor vehicle benefits, private residential housing) where it provides additional tax effective benefits
and performance incentives to the executive.
Short Term Variable Remuneration (STVR) Plan for Performance Rights
The Consolidated entity has undertaken to implement entitlements to participate in performance based STVR incentive
arrangements. The STVR will reflect generally the following elements:
• maximum entitlement of approximately 20% of Base Pay and Benefits
• the package to comprise half cash and half in a grant of performance shares
The associated performance hurdles and weighting may include:
• in respect of the cash component, the delivery of a definitive feasibility study (DFS) at the Company’s Kachi Lithium Brine
Project (Project) and financing for the Project being approved
• The hurdles and weighting for the performance shares are to be measured no later than 15 months after the executive’s
Commencement Date.
22
LAKE RESOURCES ANNUAL REPORT 2022 Directors’ Report
For the year ended 30 June 2022
Remuneration report (Audited) (continued)
Elements of remuneration (continued)
Short Term Variable Remuneration (STVR) Plan for Performance Rights (continued)
The grant of performance shares to Executive Directors is subject to shareholders’ approval.
Performance Shares
Pursuant to resolution 12 dated 25 January 2022 (and issued 24 February 2022), approval to issue Performance Shares was
granted for the Chief Financial Officer (Peter Neilsen) and Executive Technical Director (Dr Nicholas Lindsay).
Neilsen Performance Shares
The purpose of the grant of the Neilsen Performance Shares is to provide Mr Neilsen with short and long-term
variable remuneration as incentive to participate in the Company’s growth that is directly aligned with the creation of
shareholder value.
The Class A Performance Share is to be issued to Mr Neilsen is part of his short-term variable remuneration package.
The Class B, C and D Performance Shares are to be issued to Mr Neilsen as part of his long-term variable remuneration package.
Each Neilsen Performance Share entitles Mr Neilsen to receive up to a maximum of the following number of ordinary shares in
the Company upon conversion of that Performance Share, subject to certain performance measures (set out below) (Neilsen
Performance Measures) being met:
Table 1 - Maximum number of ordinary shares to be issued
Performance Share
Maximum number of ordinary shares that the Neilsen
Performance Share will convert into
Class A
Class B
Class C
Class D
Total
123,809
139,285
167,142
250,714
680,950
The maximum number of ordinary shares assumes that the VWAP Price under the Neilsen Conversion Formula set out below
is at least $0.35 being the market price of the Company’s shares as at 1 July 2021 (VWAP Floor Price). If the VWAP Price is lower
than the VWAP Floor Price, no more than the maximum number of ordinary shares approved by Shareholders under Resolution.
Conversion of Class A Neilsen Performance Share
The number of Shares to be granted to Mr Neilsen upon conversion of the Class A Neilsen Performance Share will be calculated
using the following formula (Short-term Neilsen Conversion Formula):
2323
Directors’ Report
For the year ended 30 June 2022
Remuneration report (Audited) (continued)
Elements of remuneration (continued)
Short Term Variable Remuneration (STVR) Plan for Performance Rights (continued)
NS = (2/3 x $65,000) x P
VWAP Price
where:
NS = Number of Shares to be issued on conversion of the relevant Neilsen Performance Share.
P = Percentage assessed by the Company’s Remuneration Committee according to assessment of Mr Neilsen’s achievement of
the relevant Neilsen Performance Measure over the Measurement Period up to the Maximum Weighting.
The Maximum Weighting, Neilsen Performance Measures, Measurement Period and Expiry Date for the A Class Neilsen
Performance Share are set out below.
Class A Neilsen Performance Share
Neilsen Performance Measure
Maximum
Weighting
Measurement period
Expiry Date
Delivering comprehensive accounting information
with quality timely information in Argentina and at
head company levels
40%
12 July 2021 - 12 October 2022
12 December 2022
Closing the debt financing for the Company’s Kachi
Project (60%)
60%
Conversion of Class B, C and D Neilsen Performance Shares
The number of Shares to be granted to Mr Neilsen upon conversion of the Class B, C and D Neilsen Performance Shares will be
calculated using the following formula (Long-term Neilsen Conversion Formula):
24
LAKE RESOURCES ANNUAL REPORT 2022 Directors’ Report
For the year ended 30 June 2022
Remuneration report (Audited) (continued)
Elements of remuneration (continued)
Short Term Variable Remuneration (STVR) Plan for Performance Rights (continued)
NS = (P% x $195,000)
VWAP Price
where:
NS = Number of Shares to be issued on conversion of the relevant Neilsen Performance Share.
P = Percentage assessed by the Company’s Remuneration Committee according to assessment of Mr Neilsen’s achievement of
the relevant Neilsen Performance Measure over the Measurement Period up to the Maximum Weighting.
VWAP Price = the volume weighted average price of the Company’s Shares traded on ASX during the 20 trading days prior to the
date of conversion of the relevant Neilsen Performance Share.
The Maximum Weighting, Neilsen Performance Measure, Measurement Period and Expiry Date for the Class B, C and D Neilsen
Performance Shares are set out below.
Performance
Share
Maximum
Weighting
Neilsen Performance Measure
Class B
Class C
25%
30%
Delivering and operating a comprehensive reporting
package for the debt financiers and potential JV
partners post close of the Kachi Project finance
Maintain and deliver accurate reporting across all
facets of the business incorporating cash flows, pre-
production and budgeting Preparation of financial
documents to the satisfaction of financiers, project
banking syndicates and export credit agencies
Implementation and maintenance of acceptable
budgetary and cash flow measures across Australia
and Argentina
Measurement
period
12 July 2021 –
12 January 2023
Expiry Date
12 March 2023
12 July 2021 –
12 July 2023
12 September
2023
Class D
45%
Delivery of the Kachi Project into production with
appropriate reporting mechanisms in place
12 July 2021 –
12 July 2024
12 September
2024
The Company’s Remuneration Committee will assess whether the Neilsen Performance Measures for the Neilsen Performance
Shares are satisfied by the Expiry Date.
Lindsay Performance Shares
The purpose of the grant of the Lindsay Performance Shares is to provide Dr Lindsay with short and long-term variable
remuneration as incentives to participate in the Company’s growth that is directly aligned with the creation of
shareholder value.
2525
Directors’ Report
For the year ended 30 June 2022
Remuneration report (Audited) (continued)
Elements of remuneration (continued)
Short Term Variable Remuneration (STVR) Plan for Performance Rights (continued)
The Class E Performance Share is to be issued to Dr Lindsay as part of his short-term variable remuneration package.
The Class F, G and H Performance Shares are to be issued to Dr Lindsay as part of his long-term variable remuneration package.
Each Lindsay Performance Share entitles Dr Lindsay to receive up to a maximum of the following number of ordinary shares in
the Company upon conversion of that Performance Share, subject to certain Performance Measures (set out below) being met:
Table 1 - Maximum number of ordinary shares to be issued
Performance Share
Maximum number of ordinary shares that the Lindsay Performance Share
will convert into
Class E
Class F
Class G
Class H
Total
92,343
147,749
147,749
73,874
461,715
The maximum number of ordinary shares assumes that the VWAP Price under the Lindsay Conversion Formula set out below is
$0.35 (VWAP Floor Price). If the VWAP Price is lower than the VWAP Floor Price, no more than the maximum number of ordinary
shares approved by Shareholders under Resolution 13 will be issued.
The number of Shares to be granted to Dr Lindsay upon conversion of the Lindsay Performance Shares will be calculated using
the following formula (Lindsay Conversion Formula):
NS = (P% x BP)
VWAP Price
where:
NS = Number of Shares to be issued on conversion of the relevant Lindsay Performance Share.
BP = means the base pay component being in respect of the Class D Performance Share, $32,320.20 and in respect of the Class
E, Class F and Class G Performance Shares, $129,280.80.
P = Percentage assessed by the Company’s Remuneration Committee according to assessment of relevant Performance
Measure over the Measurement Period up to the Maximum Weighting.
VWAP Price = the volume weighted average price of the Company’s Shares traded on ASX during the 20 trading days prior to the
date of conversion of the relevant Lindsay Performance Share.
The Maximum Weighting, Lindsay Performance Measures, Measurement Period and Expiry Date for the Lindsay
26
LAKE RESOURCES ANNUAL REPORT 2022 Directors’ Report
For the year ended 30 June 2022
Remuneration report (Audited) (continued)
Elements of remuneration (continued)
Short Term Variable Remuneration (STVR) Plan for Performance Rights (continued)
Performance Shares are set out below
Performance
Share
Maximum
Weighting
Class D
100%
Lindsay Performance Measure
Measurement
period
Expiry Date
Commencement of exploration and testing of brines from at
least one of the Company’s other projects
1 January 2021 –
1 April 2022
1 June 2022
Class E
Class F
Class G
40%
40%
20%
The Company putting a project team in place to build the Project
DFS and building the demonstration plant on site
1 January 2021 –
1 April 2022
1 June 2022
The Company closing the debt and equity financing for the
Company’s Kachi Project on terms satisfactory to the Company
1 January 2021 –
1 January 2023
1 March 2023
The Company receiving approval for the financing of an
expansion case being up to 50,000 tonnes per annum lithium
carbonate equivalent total production at the Kachi Project
1 January 2021 –
1 January 2024
1 March 2024
The Company’s Remuneration Committee will assess whether the Lindsay Performance Measures are satisfied within the
relevant assessment periods.
The Performance Measures may only be amended with approval of Shareholders in General Meeting and a voting exclusion
statement applies in relation to any holder of Performance Shares.
Long-term incentives (LTI) Plan
At the 2016 Annual General Meeting, the shareholders of the Consolidated entity approved the Long-Term Incentive (LTI) Plan
(‘Plan’). The Plan was updated and extended at an Extraordinary General Meeting (EGM) of the Shareholders on 15 August 2019
at which approval was granted to issue up to 25,000,000 performance rights under the 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 Consolidated entity aligning the interest of both employees and shareholders and for the Consolidated entity to reward
eligible employees for their effort. The Plan contemplates the issue to eligible employees of performance rights which may
have milestones.
Mr Crow’s 5 million performance rights will vest once an investment partner signs an agreement to invest in the Kachi project
in Catamarca (Investor). Dr Lindsay’s remaining 2.5 million performance rights will vest when a Pilot Plant is established on-
site at the Kachi project in Catamarca (Pilot Plant).
Long Term Variable Remuneration (LTVR) Plan for Performance rights
The LTVR will be equal to 40% of the annual value of the executive’s Base Pay and Benefits as at the Commencement Date,
comprised in performance shares granted in tranches over three years, subject to achievement of the following performance
hurdles, weighted as indicated:
2727
Directors’ Report
For the year ended 30 June 2022
Remuneration report (Audited) (continued)
Elements of remuneration (continued)
Long Term Variable Remuneration (LTVR) Plan for Performance rights (continued)
(1)
for the first tranche, measured no later than 15 months after the Commencement Date - the Company putting a project
team in place to build the Project DFS and building the demonstration plant on site (40%);
(2) for the second tranche, measured at the end of the second year after the Commencement Date - closing the debt
and equity financing for the Company’s Kachi Lithium Brine Project (Kachi Project) on terms satisfactory to the
Company (40%);
(3) for the third tranche, measured at the end of the third year after the Commencement Date - the Company receiving
approval for the financing of an expansion case being up to 50,000 tonnes per annum lithium carbonate equivalent total
production at the Kachi Project (20%).
In each case the performance hurdles will be measured at the end of the indicated measurement periods to determine the
actual entitlement for the relevant measurement period.
The grant of performance shares to Executive Directors is subject to shareholders’ approval.
(b) Details remuneration
Amounts of remuneration
Non-executive
Executive
KMP
Date
R. Trzebski
A Saenz
S. Crow
N. Lindsay
S. Promnitz
from 2 December 2019
from 28 July 2021
from 20 June 2022
from 1 January 2021
until 17 June 2022
from 27 July 2021
from 25 October 2021
until 13 July 2021
P Neilsen
G Parimoo
G. Gill
Name
G Gill
P. Neilsen
G. Parimoo
Position
Date
Chief Financial Officer and Joint Company Secretary
until 13 July 2021
Chief Financial Officer and Joint Company Secretary
from 11 July 2021
Chief Operating Officer
from 25 October 2021
The following table shows details of the remuneration expense recognised for the Consolidated entity’s executive and key
management personnel for the current and previous financial year measured in accordance with the requirements of the
accounting standards.
28
LAKE RESOURCES ANNUAL REPORT 2022 Directors’ Report
For the year ended 30 June 2022
Remuneration report (Audited) (continued)
(b) Details remuneration (continued)
Key Management
Personnel
2022
Non-Executive Directors
R. Trzebski
A Saenz1
Executive Directors
S. Crow2
S. Promnitz3
N. Lindsay
Executive Management
P Neilsen4
G. Parimoo5
G. Gill6
Total
Directors’
Fees and/
or Salary
$
Consulting
Fees
$
Annual
leave
$
Long
Service
Leave
$
Post-
Employment
Benefits
$
Share Based payments
Other
Benefits-
Relocation
Performance
rights
$
Options
$
Total
$
23,000
1,545
7,200
64,800
141,000
-
-
180,000
96,600
-
-
-
-
355,679
-
155,679
14,164
300,000
186,593
15,419
1,880
-
-
27,502
24,931
-
-
273,125
(7,188)
251,379
96,545
141,000
549,725
545,836
780,202
335,258
249,362
-
-
108,260
38,445
568
27,502
-
-
-
-
100,000
-
-
461,248 863,022
760,609
1,109,971
-
108,260
1,626,099
391,453 232,543
18,158
87,135
100,000
517,316 1,221,857 4,194,561
Directors’
Fees and/or
Salary
$
Consulting
Fees
$
Annual
leave
$
Long
Service
Leave
$
Post-
Employment
Benefits
$
Share Based Payments
Performance
rights
$
Options
$
Total
$
Key Management
Personnel
2021
Non-Executive directors
S. Crow
N. Lindsay
R. Trzebski
140,000
120,000
61,000
Executive directors
S. Promnitz
295,192
Executive Management
172,500
G. Gill
Total
74,100
16,900
-
-
-
-
-
-
-
-
-
-
5,792
65,912
27,998
28,043
-
-
-
788,692
91,000
65,912
27,998
33,835
1 A. Saenz became a Non-Executive Director on 28 July 2021
2 S. Crow became an Executive Director on 20 June 2022
3 S. Promnitz resigned as Managing Director on 17 June 2022
4 P Neilsen become Chief Financial Officer and Company Secretary on 11 July 2021
5 G. Parimoo became a Chief Operating Officer on 25 October 2021
6 G. Gill resigned as Chief Financial Officer and Company Secretary on 13 July 2021
-
-
-
-
-
-
-
-
-
-
-
-
214,100
136,900
66,792
417,145
172,500
1,007,437
2929
Directors’ Report
For the year ended 30 June 2022
Remuneration report (Audited) (continued)
(b) Details remuneration (continued)
Percentages of remuneration that are performance based:
Name
2022
Non-Executive directors
R. Tzrebski
A.Saenz
Executive directors
S. Crow
S. Promnitz
N. Lindsay
Executive Management
P. Neilsen
G. Parimoo
G. Gill
(c) Service Agreements
Fixed remuneration
At risk - STI
At risk - LTI
2022
2021
2022
2021
2022
2021
100%
100%
50%
100%
51%
47%
31%
100%
100%
100%
100%
100%
100%
0%
0%
0%
0%
5%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
50%
0%
28%
53%
69%
0%
48%
54%
73%
0%
Remuneration and other terms of employment for key management personnel are generally formalised in service agreements.
Details of existing agreements are as follows:
Name
Title
S Crow
Executive Chairman
Agreement commenced
2016
Term of agreement
Nature of services provided - Chairman of the Lake Resources NL Board, in addition to external
consultant for financing and marketing related services.
Basis of engagement - Prior to being appointed as executive Chairman on 20 June 2022, Mr
Crow provided services as Non-Executive Chairman for the Consolidated entity.
As Non-Executive Chairman, Mr Crow received consulting fees for representation at
conferences and road shows of A$6,500 per month plus expenses and earned an additional
Directors fee of A$15,000 per month. During his appointment as Executive Chairman for an
estimated 6 month period (from 20 June 2022), Mr Crow will receive director fees equivalent to
A$1 million per annum. The revised remuneration was approved and later confirmed at a Board
meeting on 9 August 2022.
Mr Crow was granted 5,000,000 performance rights pursuant to approval at a shareholder
meeting held on 15 August 2019, which are currently still held at the date of this report.
There is a 1 week notice period required, in the event of termination of services.
30
LAKE RESOURCES ANNUAL REPORT 2022
Directors’ Report
For the year ended 30 June 2022
Remuneration report (Audited) (continued)
(c) Service Agreements (continued)
Name
Title
D. Dickson
Chief Executive Officer (from 15 September 2022)
Agreement commenced
15 September 2022
Term of agreement
Nature of services - New Chief Executive Officer
The Consolidated entity entered into an agreement with David Dickson and his company to
provide services as Chief Executive Officer.
Mr Dickson’s employment contract contains agreed compensation being a base salary of
US$1 million, and annual potential bonus pool of a maximum amount of 100% of base salary
across short- and long-term performance incentives requirements.
Name
Title
S. Promnitz
Managing Director (until 17 June 2022)
Agreement commenced
14 November 2016
Term of agreement
Nature of services - Managing Director and Chief Executive Officer for Lake Resources NL
Initial salary of $250,000 per annum, with a review point scheduled for 12 months from
commencement date, subject to satisfactory performance. Effective from 1 January 2021 as an
interim measure pending the negotiation of a new agreement, base salary was increased to
$360,000 plus statutory superannuation.
Short term and long-term variable remuneration incentives are to be determined in
conjunction with recommendations of an external independent remuneration consultant.
If termination notice given by Consolidated entity, the Consolidated entity 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. The consolidated entity shall have the right to choose whether
Mr. Promnitz works his notice or paid in lieu of notice. Mr Promnitz resigned his position
as Managing Director of the Consolidated entity on 17 June 2022, and did not work his
notice period.
Name
Title
Dr R Trzebski
Non-Executive Director
Agreement commenced
2 December 2019
Term of agreement
Nature of services - Lake Resources NL Board member
Not specified
Remuneration: $6,000 per month plus superannuation.
There is no notice period specified per arrangement.
3131
Directors’ Report
For the year ended 30 June 2022
Remuneration report (Audited) (continued)
(c) Service Agreements (continued)
Name
Title
Dr N Lindsay
Executive Technical Director
Agreement commenced
1 January 2021
Term of agreement
Nature of services - Executive technical director for Kachi project, with additional consulting
during the year for professional geological and metallurgical engineering services.
Basis of engagement - Prior to being appointed as an executive Director Dr Lindsay (while a
non-executive Director) received consulting fees for work on the Kachi project and MS Project
instalment at the daily rate of $1,300 plus GST plus expenses.
Remuneration as full-time employee from 1 January 2021 - Annual Base Salary of $300,000.00
per annum exclusive of statutory superannuation contributions. Short term and long-term
variable remuneration (STVR and LTVR) incentives are to be determined in conjunction with
recommendations of an external independent remuneration consultant.Dr Lindsay was granted
2,500,000 performance rights pursuant to approval at a shareholder meeting held on 15 August
2019. An additional 461,715 performance shares were granted as compensation for services
rendered during the year, and approved at meeting held 25 January 2022.
If termination notice is given by Consolidated entity, the Consolidated entity shall be liable to
pay full compensation for a six-month notice period. If notice is given by Dr Lindsay, the notice
period is three months. The consolidated entity shall have the right to choose whether Dr
Lindsay works his notice or paid in lieu of notice.
STVR (Short term variable remuneration) - maximum entitlement to STVR will be approximately
20% of Base Pay and Benefits up to a maximum value of $60,000 in the first year of the Term.
The STVR package will comprise half cash and half in a grant of performance shares.
LTVR (Long term variable remuneration) - maximum entitlement to LTVR will be approximately
40% of the annual value of your Base Pay and Benefits as at the Commencement Date,
comprised in performance shares granted in tranches over three years, subject to achievement
of the following performance hurdles, weighted as indicated:
(1) for the first tranche, measured no later than 15 months after the Commencement Date
- the Company putting a project team in place to build the Project DFS and building the
demonstration plant on site (40%);
(2) for the second tranche, measured at the end of the second year after the Commencement
Date - closing the debt and equity financing for the Company’s Kachi Lithium Brine Project
(Kachi Project) on terms satisfactory to the Company (40%);
(3) for the third tranche, measured at the end of the third year after the Commencement Date -
the Company receiving approval for the financing of an expansion case being up to 50,000
tonnes per annum lithium carbonate equivalent total production at the Kachi Project (20%).
32
LAKE RESOURCES ANNUAL REPORT 2022
Directors’ Report
For the year ended 30 June 2022
Remuneration report (Audited) (continued)
(c) Service Agreements (continued)
Name
Title
P Neilsen
Chief Financial Officer (from13 July 2021) and Joint Company Secretary
Agreement commenced
11 July 2021
Term of agreement
Nature of services - Chief Financial Officer and Company Secretary
Term - 3 years from date of appointment
Remuneration: Commenced at $330,000 per annum inclusive of statutory superannuation. Mr
Neilsen’s remuneration increased to $420,000 plus superannuation effective 1 January 2022.
Sign on bonus - 2 million options with exercise price of 50% greater than market price at
commencement date and expiry of 3 years from commencement date.
Mr Neilsen’s remuneration package entitles him to participate in the performance based short
term and long term variable remuneration plans of the Consolidated entity.
STVR (Short term variable remuneration) - maximum entitlement to STVR will be approximately
20% of Base Pay and Benefits up to a maximum value of $65,000 in the first year of the Term.
The STVR package will comprise one third in cash and two thirds in a grant of performance
shares
LTVR (Long term variable remuneration) - maximum entitlement to LTVR will be approximately
20% of Base Pay and Benefits, up to a maximum value of $195,000 per year for the three years
after the Commencement Date.
The LTVR package will comprise a grant of performance shares in tranches over three years. The
associated performance hurdles and weighting will be:
(1) for the first tranche, measured no later than 18 months after the Commencement Date -
delivering and operating a comprehensive reporting package for the debt financiers and
potential JV partners post Project finance close (25%);
(2) for the second tranche, measured at the end of the second year after the Commencement
Date - as agreed in consultation with you (or, failing agreement, as determined by us, acting
reasonably) (30%);
(3) for the third tranche, measured at the end of the third year after the Commencement Date
- delivery of the Project into production with appropriate reporting mechanisms in place
(45%).
Mr Neilsen was granted 680,705 performance shares as compensation for services rendered
during the year, and approved at meeting held 25 January 2022.
3333
Directors’ Report
For the year ended 30 June 2022
Remuneration report (Audited) (continued)
(c) Service Agreements (continued)
Name
Title
commenced
Term of agreement
G. Gill
Chief Financial Officer and Joint Company Secretary (resigned on 13 July 2021) Agreement
15 October 2019
Nature of services - Former Chief Financial Officer and Company Secretary, providing Company
secretarial and financial consulting services post resignation date.
The Consolidated entity entered into an agreement with Garry Gill and his company to provide
services as Company Secretary and Chief Financial Officer. Services were provided on a part
time basis at a rate of $15,000 per month plus GST plus expenses.
In July the Company announced that Mr Peter Neilsen would replace Mr Gill as Chief Financial
Officer and Company Secretary and that Mr Gill would continue for a transitionary period. Mr
Gill continued to provide billable services up until May 2022.
34
LAKE RESOURCES ANNUAL REPORT 2022
Directors’ Report
For the year ended 30 June 2022
Remuneration report (Audited) (continued)
(c) Service Agreements (continued)
Name
Title
G Parimoo
Chief Operating Officer
Agreement commenced
25 October 2021
Term of agreement
Nature of services - Chief Operating Officer; Kachi project management
Until terminated
Remuneration: US$335,000 per year salary excluding superannuation. Mr Parimoo received
a sign-on package of 2 million options immediately exercisable with a strike price at zero
premium to the Lake Resources share price on the day, with a 3 year expiry.
STVR (Short term variable remuneration) - maximum entitlement to 20% of Base Pay and
Benefits up to a maximum value of $67,000 [United States dollars] in the first year of the Term.
The STVR package will comprise half cash and half in a grant of performance shares.
LTVR (Long term variable remuneration) - maximum entitlement to LTVR equal to 40% of
the annual value of Base Pay and Benefits as at the Commencement Date, comprised in
performance shares granted in tranches over three years, subject to achievement of the
following performance hurdles, weighted as indicated:
(1) for the first tranche, measured no later than 15 months after the Commencement Date - the
Company putting a project team in place to build the Project (40%);
(2) for the second tranche, measured at the end of the second year after the Commencement
Date - closing the debt and equity financing for the Company’s Kachi Lithium Brine Project
on terms satisfactory to the Company 20%);
(3) for the third tranche, measured at the end of the third year after the Commencement
Date - the successful commissioning of the project at 25,500 tonnes per annum lithium
carbonate equivalent total production at the Kachi Project (40%).
During secondment periods to Argentina, Mr Parimoo is provided with relocation, repatriation,
housing, medical and educational allowance for himself and his family, and a company vehicle.
Business return airfares himself and his family to Mr Parimoos’ home base once a year are also
provided by the Consolidated entity.
Notice period - If termination notice is given by Consolidated entity, the Consolidated entity
shall be liable to pay full compensation for a three-month notice period. If notice is given by Mr
Parimoo, the notice period is three months. Consolidated entity shall have the right to choose
whether Mr. Parimoo work his notice or be paid in lieu of notice.
Key management personnel have no entitlement to termination payments in the event of removal for misconduct.
3535
Directors’ Report
For the year ended 30 June 2022
Remuneration report (Audited) (continued)
(a) Share-based compensation
(i) Terms and conditions of the share-based payment arrangements Options
The terms and conditions of each grant of options over ordinary shares affecting remuneration of directors and other key
management personnel in this financial year, prior or future reporting years are as follows:
Grant date
Vesting and
exercise date
Expiry date
Exercise price
12-July-2021
14-Oct-2021
12-July-2021
12-July-2024
25-Oct-2021
25-Oct-2024
$0.55
$0.57
Value per
option at
grant date
$0.231
$0.38
% Vested
% Expired/
Exercised
100%
100%
0%
0%
4,000,000 options over ordinary shares were issued to key management personnel following approval at the shareholder
meetings. The terms and conditions of each grant of options over ordinary shares affecting remuneration of directors and other
key management personnel in this financial year or future reporting years are as follows:
Name
Number of
Options granted
Grant date
Vesting and
exercise date
Expiry date
Exercise
price
Fair value at
grant date
P Neilsen
G Parimoo
Total
2,000,000
2,000,000
4,000,000
12-July-2021
14-Oct-2021
12-July-2021
25-Oct-2021
12-July-2024
25-Oct-2024
$0.55
$0.57
$0.231
$0.380
Of the 4,000,000 options on issue at the exercise date, none have been exercised or expired.
Performance Rights
The terms and conditions of performance rights affecting remuneration of directors and other key management personnel in
this financial year or future reporting years are as follows:
Grant date
Vesting
date
Value at
Grant
No. of
Rights
Granted
Performance
Hurdle
Performance
achieved
No. vested
and
exercised
No. vested
during
the year
and not
exercised
Expired
during the
year
15-Aug-2019
15-Aug-24
$0.0575
5,000,000
PFS
15-Aug-2019
15-Aug-24
$0.0575
2,500,000
Pilot plants
15-Aug-2019
15-Aug-24
$0.0575
7,500,000
Investor
100%
100%
67%
5,000,000
-
2,500,000
-
-
5,000,000
2,500,000
-
-
On 15 August 2019, 15,000,000 Performance rights were issued to Directors following approval at the shareholder meeting of
15 August 2019. Of the performance rights granted to Mr Promnitz and Dr Lindsay 5 million rights vested on 30 April 2020 and
share were issued on 31 August 2020.
36
LAKE RESOURCES ANNUAL REPORT 2022 Directors’ Report
For the year ended 30 June 2022
Remuneration report (Audited) (continued)
(d) Share-based compensation (continued)
(i) Terms and conditions of the share-based payment arrangements (continued)
Name
S. Crow
S. Promnitz
N. Lindsay
Total
Number of
Rights granted
Grant date
Expiry date
Fair value at
grant date
Vested and exercised
in a prior year
Expired during
the year
5,000,000
15-Aug-2019
15-Aug-24
5,000,000
15-Aug-2019
15-Aug-24
5,000,000
15-Aug-2019
15-Aug-24
15,000,000
15-Aug-2019
15-Aug-24
$0.0575
$0.0575
$0.0575
$0.0575
-
-
2,500,000
2,500,000
2,500,000
-
5,000,000
2,500,000
Performance rights outcomes are as follows:
The Kachi Pre-Feasibility Study (PFS) completion resulted in 2,500,000 for Dr Lindsay and 2,500,000 for S Prominitz vested in
the 2021 and converted into ordinary shares in 2022.
Mr Crow’s 5 million performance rights vest dependent upon an investment partner signing an agreement to invest in the
Kachi project in Catamarca (Investor). At 30 June 2020 the probability of obtaining an investment partner was assessed at
5%. It has been confirmed that the project will be funded 70% by international credit agencies sourced by SD Capital and GKB
Ventures, with the remainder being provided by equity. It is now considered extremely likely that the vesting condition will be
achieved, hence an increase to 100% probability was disclosed at 30 June 2022. Due to Promnitz’s resignation on the 17 June
2022, the unwinding of his remaining 2.5 million performance rights have taken place in the current financial year.
During the current financial period, an agreement to develop the Pilot Plant was signed with Lilac Solutions, with works
commencing on the Pilot Plant at site. It is considered that the probability of the performance hurdle being achieved is 100%, as
at 30 June 2022. Dr Lindsay’s remaining 2.5 million performance rights has now vested as the Pilot Plant is established on-site
at the Kachi project in Catamarca (Pilot Plant).
Number of
Rights granted
Grant date
Expiry date
Converted to
Shares/ Expired
Fair value at
grant date
Expensed
2022
(i) Performance shares
Name
P. Neilsen
N. Lindsay
Total
1,142,665
123,809
22-Feb-2022
12-Dec-22
139,285
22-Feb-2022
12-Mar-23
167,142
22-Feb-2022
12-Sep-23
250,714
22-Feb-2022
12-Sep-24
92,343
22-Feb-2022
147,749
22-Feb-2022
1-Jun-22
1-Jun-22
147,749
22-Feb-2022
1-Mar-23
73,874
22-Feb-2022
1-Mar-24
$0.9000
$0.9000
$0.9000
$0.9000
$0.9000
$0.9000
$0.9000
$0.9000
-
35,911
143,645
-
71,823
251,379
3737
Directors’ Report
For the year ended 30 June 2022
Remuneration report (Audited) (continued)
(d) Share-based compensation (continued)
(i) Terms and conditions of the share-based payment arrangements (continued)
(i) Performance shares
Directors exercised judgement in assessing the number of performance shares that are expected to vest. The vesting
conditions and Directors assessment at 30 June 2022 are summarised below:
Number
of Rights
granted
123,809
Name
P. Neilsen
Performance measure
Measurement
date
Directors judgement at
30 June 2022
Delivering and operating a comprehensive
reporting package for the debt financiers and
potential JV partners post close of the Kachi
Project finance and closing of debt financing for
the Company’s Kachi Project (60%)
12-Oct-22
In the Directors judgement, this
milestone will not be met by 12
October 2022. Nil expense recorded.
139,285
Delivering and operating a comprehensive
reporting package for the debt financiers and
potential JV partners post close of the Kachi
Project finance
12-Jan-23
In the Directors judgement, this
milestone will not be met by 12
January 2023. Nil expense recorded.
167,142
Maintain and deliver accurate reporting across
all facets of the business incorporating cash
flows, pre-production and budgeting.
12-Jul-23
In the Directors judgement, this
milestone will not be met by 12 July
2023. Nil expense recorded.
Preparation of financial documents to the
satisfaction of financiers, project banking
syndicates and export credit agencies
Implementation and maintenance of acceptable
budgetary and cash flow measures across
Australia and Argentina
250,714
Delivery of the Kachi Project into production with
appropriate reporting mechanisms in place
12-Jul-24
In the Directors judgement, this
milestone will not be met by 12 July
2024. Nil expense recorded.
92,343
Commencement of exploration and testing of brines
from at least one of the Company’s other projects
1-Apr-22
This tranche have vested. $35,911
expense recognised.
N. Lindsay
147,749
147,749
73,874
The Company putting a project team in place
to build the Project DFS and building the
demonstration plant on site
1-Apr-22
This tranche have vested. $143,645
expense recognised.
The Company closing the debt and equity
financing for the Company’s Kachi Project on
terms satisfactory to the Company
1-Jan-23
In the Directors judgement, this
milestone will not be met by 1
January 2023. Nil expense recorded.
The Company receiving approval for the financing
of an expansion case being up to 50,000 tonnes
per annum lithium carbonate equivalent total
production at the Kachi Project
1-Jan-24
In the Directors judgement,
financing approval is expected
before 1 January 2024 therefore
expected that all 73,874 performance
shares will vest. $71,823 expense
recognised.
38
LAKE RESOURCES ANNUAL REPORT 2022 Directors’ Report
For the year ended 30 June 2022
Remuneration report (Audited) (continued)
(d) Share-based compensation (continued)
(i) Terms and conditions of the share-based payment arrangements (continued)
(i) Performance shares
(e) Link between remuneration and performance
During the year, the Consolidated entity has generated losses from its principal activity of exploring and developing its suite
of lithium projects. As the Consolidated entity is still growing the business, the link between remuneration, performance and
shareholder wealth is difficult to define. Share prices are subject to the influence of fluctuation in the world market price for
lithium and general market sentiment towards the sector, and, as such, increases or decreases may occur quite independently
of Executive performance. Given the nature of the Consolidated entity’s activities and the consequential operating results, no
dividends have been paid. There have been no returns of capital in the current or previous financial periods.
The earnings of the Consolidated entity for the five years to 30 June 2022 and share price as at each year end are
summarised below:
Net Loss
Net Assets
2022
$
2021
$
2020
$
2019
$
2018
$
5,606,761
3,119,375
4,760,440
4,760,140
3,540,391
218,832,460
46,871,271
17,049,287
12,913,063
6,505,140
Share Price at year end (cents)
79.0
33.5
3.5
9.0
9.0
(f) Additional disclosures relating to key management personnel
Share holdings
Movements in the number of shares in the Consolidated entity held during the financial year by each director and other
members of key management personnel of the Consolidated entity, including their personally related parties, are set out below:
2022
Name
S. Crow
S. Promnitz
N. Lindsay
G. Gill
P Neilsen
Total
Balance at the start
of the year
Received as part of
remuneration
Additions
Disposal /
Other
Balance at the
end of the year
4,903,834
6,278,319
2,500,000
-
-
13,682,153
-
-
-
-
-
-
13,365,533
(350,000)
17,919,367
6,127,831
(12,406,150)
-
4,650,000
(3,933,333)
3,216,667
32,282
37,850
(32,282)
-
-
37,850
24,213,496
(16,721,765)
21,173,884
3939
Directors’ Report
For the year ended 30 June 2022
Remuneration report (Audited) (continued)
(f) Additional disclosures relating to key management personnel (continued)
Options
Movements in the number of options over ordinary shares in the Consolidated entity held during the financial year by each
director and other members of key management personnel of the Consolidated entity, including their personally related
parties, are set out below:
Balance at start
of the year
Granted as
remuneration
Exercised
Listed options
received
Expired /
forfeit
Balance end
of year
5,000,000
5,000,000
5,000,000
-
-
-
(7,227,588)
2,227,588
-
(6,127,831)
(4,650,000)
2,255,662
(1,127,831)
1,300,000
(1,650,000)
-
-
-
-
-
2,000,000
2,000,000
-
-
-
-
-
-
2,000,000
2,000,000
15,000,000
4,000,000
(18,005,419)
5,783,250
(2,777,831)
4,000,000
Name
S. Crow
S. Promnitz
N Lindsay
P Neilsen
G Parimoo
Total
Performance rights
Movements in the number of performance rights over ordinary shares in the Consolidated entity held during the financial
year by each director and other members of key management personnel of the Consolidated entity, including their personally
related parties, are set out below:
Name
S Crow
S Promnitz
N Lindsay
Total
Performance shares
Balance at start
of year
Granted as
remuneration
Converted to
shares
Expired
Balance at
end of year
5,000,000
2,500,000
2,500,000
10,000,000
-
-
-
-
-
-
-
-
-
5,000,000
(2,500,000)
-
-
2,500,000
(2,500,000)
7,500,000
Movements in the number of performance shares over ordinary shares in the Consolidated entity held during the financial
year by each director and other members of key management personnel of the Consolidated entity, including their personally
related parties, terms and conditions of these issuance are set out in section (b) Service Agreements in each respective party,
are set out below:
40
LAKE RESOURCES ANNUAL REPORT 2022 Directors’ Report
For the year ended 30 June 2022
Remuneration report (Audited) (continued)
Additional disclosures relating to key management personnel (continued)
Performance shares (continued)
2022
Name
N Lindsay
P Neilsen
Total
Balance at the
start of the year
Granted as
remuneration
Converted to
shares
Expired
Balance at end
of year
-
-
-
461,715
680,950
1,142,665
-
-
-
-
-
-
461,715
680,950
1,142,665
Related party transactions
(a) Transactions with other related parties
The following transactions occurred with related parties:
Payment for services
Consultancy services provided by companies associated with Mr Stuart Crow (Director)
Consultancy services provided by a Consolidated entity associated with
Dr Nicholas Lindsay (Director)
Consultancy services provided by former CFO Garry Gill (Executive)
Receivable from and (payable to) related parties
Consultancy services and directors’ fees provided by an entity associated with Mr Stuart Crow
Consultancy services provided by an entity associated with Dr Nicholas Lindsay (Director)
Net advances to Mr Stephen Promnitz
2022
$
2021
$
96,600
186,593
108,260
391,453
74,100
16,900
-
91,000
-
-
16,500
21,064
1,077,773
(142,249)
1,077,773
(104,685)
Disclosures relating to the advance to Mr Promnitz:
• The outstanding balance at 30 June 2022 was $1,077,773 (2021: $142,249)
• The terms and conditions at June 2022 of the advances are unsecured and has no personal guarantees.
• No provision for credit loss been recognised.
End of Audited Remuneration Report
4141
Directors’ Report
For the year ended 30 June 2022
Remuneration report (Audited) (continued) Shares under option
Unissued ordinary shares
Unissued ordinary shares of Lake Resources NL under option at the date of this report are as follows:
Grant Date
09-Mar-2021
13-Jul-21
01-Aug-21
19-Jan-22
14-Oct-21
16-Mar-22
16-Mar-22
26-Apr-22
26-Apr-22
26-Aug-22
Total
Expiry date
09-Mar-2023
12-Jul-24
1-Aug-24
19-Jan-25
25-Oct-24
01-Mar-23
15-Oct-22
26-Apr-22
26-Apr-22
26-Aug-22
Exercise price
Number under option
$0.30
$0.55
$0.50
$1.48
$0.57
$1.00
$0.75
$1.42
$1.42
$1.50
6,524,157
2,000,000
5,601,000
1,000,000
2,000,000
100,000
225,000
1,036,122
1,036,122
1,000,000
20,522,401
Each option is convertible to one ordinary share. Option holders do not have the right to participate in any other share
issue of the Consolidated entity or of any other entity. For details of options issued to directors and other key management
personnel as remuneration, refer to the remuneration report.
Shares issued on the exercise of options
During or since the end of the financial year, the Consolidated entity issued ordinary shares of the Consolidated entity as a
result of the exercise of options as follows (there are no amounts unpaid on the shares issued).
Grant Date
16-Sep-19
09-Mar-2021
09-Mar-2021
27-Jan-2021
24-Apr-21
28-Jul-21
28-Jul-21
28-Jul-21
28-Jul-21
01-Aug-21
30-Aug-21
24-Aug-21
15-Oct-21
19-Aug-19
Total
42
Expiry date
Exercise price
Number under option
31-Jul-21
09-Mar-23
09-Mar-23
09-Mar-23
24-May-23
31-Dec-24
31-Dec-24
31-Dec-24
31-Dec-24
01-Aug-24
15-Jun-22
15-Oct-22
15-Jun-22
15-Jun-21
$0.09
$0.30
$0.30
$0.30
$0.30
$0.55
$0.55
$0.55
$0.55
$0.50
$0.75
$0.35
$0.75
$0.10
14,000,000
55,874,040
11,351,803
1,000,000
1,500,000
10,000,000
10,000,000
10,000,000
5,000,000
179,000
4,000,000
86,094,394
82,895,145
75,000
291,969,382
LAKE RESOURCES ANNUAL REPORT 2022 Directors’ Report
For the year ended 30 June 2022
Shares under option (continued)
Shares issued on the exercise of options (continued)
Performance Rights
At the date of this report there were 7,500,000 unissued ordinary shares of Lake Resources NL under performance rights. During
the financial year ended 30 June 2022, 2,500,000 performance rights have expired in relation to Directors. No performance
rights have been issued or converted to shares since 30 June 2022. Information on the issue of performance rights to Directors
is provided in the remuneration report above or converted to shares.
Performance Shares
At the date of this report there were 1,142,665 unissued ordinary shares of Lake Resources NL under performance shares.
During the financial year ended 30 June 2022, no performance shares have expired in relation to Directors. No performance
shares have been issued since 30 June 2022. Information on the issue of performance shares to Directors is provided in the
remuneration report above and none converted to shares.
Indemnity and insurance of officers
The Consolidated entity has given an indemnity or entered into an agreement to indemnify directors and officers of the
Consolidated entity against liabilities for costs and expenses incurred in defending legal proceedings arising from conduct
while acting in the capacity as a director or officer of the Consolidated Entity, other than conduct involving a willful breach.
During the financial year, the Consolidated entity paid a premium in respect of a contract to insure the directors and officer
of the Consolidated entity 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.
Indemnity and insurance of auditor
The Consolidated entity has not, during or since the end of the financial year, indemnified or agreed to indemnify the auditor of
the Consolidated entity or any related entity against a liability incurred by the auditor.
During the financial year, the Consolidated entity has not paid a premium in respect of a contract to insure the auditor of the
Consolidated entity 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 Consolidated entity, or to intervene in any proceedings to which the Consolidated entity is a party, for the purpose of taking
responsibility on behalf of the Consolidated entity for all or part of those proceedings.
Non-audit services
BDO provided non-audit services of $55,288 during the financial year ended 30 June 2022. The Directors are satisfied that
the provision of non-audit services is compatible with the general standard of independence for auditors imposed by the
Corporations Act 2001. The Directors are satisfied that the provision of non-audit services did not compromise the auditor
independence requirements of the Corporations Act 2001 because none of the services undermine the general principles
relating to auditor independence as set out in APES 110 Code of Ethics for Professional Accountants.
4343
Directors’ Report
For the year ended 30 June 2022
Officers of the Consolidated entity who are former partners of BDO Audit Pty Ltd
There are no officers of the Consolidated entity who are former partners of BDO 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 on the
following page.
Auditor
BDO Audit Pty Ltd continues in office in accordance with section 327 of the Corporations Act 2001.
Rounding of amounts
The company is of a kind referred to in ASIC Legislative Instrument 2016/191, relating to the ‘rounding off’ of amounts in
the directors’ report. Amounts in the directors’ report have been rounded off in accordance with the instrument to the
nearest dollar.
This report is made in accordance with a resolution of Directors.
Tel: +61 7 3237 5999
Fax: +61 7 3221 9227
www.bdo.com.au
Level 10, 12 Creek St
Brisbane QLD 4000
GPO Box 457 Brisbane QLD 4001
Australia
DECLARATION OF INDEPENDENCE BY R M SWABY TO THE DIRECTORS OF LAKE RESOURCES NL
As lead auditor of Lake Resources NL for the year ended 30 June 2022, I declare that, to the best of my
knowledge and belief, there have been:
1. No contraventions of the auditor independence requirements of the Corporations Act 2001 in
relation to the audit; and
2. No contraventions of any applicable code of professional conduct in relation to the audit.
This declaration is in respect of Lake Resources NL and the entities it controlled during the year.
S. Crow
Executive Chairman
30 September 2022
44
R M Swaby
Director
BDO Audit Pty Ltd
Brisbane, 30 September 2022
BDO Audit Pty Ltd ABN 33 134 022 870 is a member of a national association of independent entities which are all members of BDO
Australia Ltd ABN 77 050 110 275, an Australian company limited by guarantee. BDO Audit Pty Ltd and BDO Australia Ltd are members of
BDO International Ltd, a UK company limited by guarantee, and form part of the international BDO network of independent member
firms. Liability limited by a scheme approved under Professional Standards Legislation.
LAKE RESOURCES ANNUAL REPORT 2022 Tel: +61 7 3237 5999
Fax: +61 7 3221 9227
www.bdo.com.au
Level 10, 12 Creek St
Brisbane QLD 4000
GPO Box 457 Brisbane QLD 4001
Australia
DECLARATION OF INDEPENDENCE BY R M SWABY TO THE DIRECTORS OF LAKE RESOURCES NL
As lead auditor of Lake Resources NL for the year ended 30 June 2022, I declare that, to the best of my
knowledge and belief, there have been:
1. No contraventions of the auditor independence requirements of the Corporations Act 2001 in
relation to the audit; and
2. No contraventions of any applicable code of professional conduct in relation to the audit.
This declaration is in respect of Lake Resources NL and the entities it controlled during the year.
R M Swaby
Director
BDO Audit Pty Ltd
Brisbane, 30 September 2022
BDO Audit Pty Ltd ABN 33 134 022 870 is a member of a national association of independent entities which are all members of BDO
Australia Ltd ABN 77 050 110 275, an Australian company limited by guarantee. BDO Audit Pty Ltd and BDO Australia Ltd are members of
BDO International Ltd, a UK company limited by guarantee, and form part of the international BDO network of independent member
firms. Liability limited by a scheme approved under Professional Standards Legislation.
4545
Consolidated Statement of Profit or
Loss and other Comprehensive Income
For the year ended 30 June 2022
Depreciation and amortisation expense
Administrative expenses
Corporate expenses
Employee benefits expense
Share based payments expense
Consultancy and legal costs
Exploration expenditure impaired
Foreign exchange gains and losses
Operating loss
Net Finance costs
Loss before income tax
Income tax expense
Loss for the year
Items that may be reclassified to profit or loss
Foreign currency translation reserve
Note
2022
$
2021
$
5
5
5
5
4
(51,298)
(337)
(868,985)
(234,451)
(3,416,414)
(1,269,593)
(1,835,589)
(2,425,591)
(727,810)
(108,931)
(3,374,051)
(550,873)
-
(301,700)
6,952,373
299,472
(5,019,555)
(2,894,223)
25,126
-
(4,994,429)
(2,894,223)
6
(688,666)
-
(5,683,095)
(2,894,223)
9(b)
76,334
(225,152)
Total comprehensive income for the year
(5,606,761)
(3,119,375)
Loss for the year is attributable to:
Owners of Lake Resources NL
Total comprehensive income for the year is attributable to:
Owners of Lake Resources NL
Basic loss per share
Diluted loss per share
(5,683,095)
(2,894,223)
(5,606,761)
(3,119,375)
Cents
Cents
19
19
(0.51)
(0.51)
(0.35)
(0.35)
The above consolidated statement of profit or loss and other comprehensive income should be read in conjunction with the
accompanying notes.
46
LAKE RESOURCES ANNUAL REPORT 2022 Consolidated Statement of Financial Position
As at 30 June 2022
Assets
Current assets
Cash and cash equivalents
Trade and other receivables
Other current assets
Total current assets
Non-current assets
Property, plant and equipment
Right-of-use assets
Exploration and evaluation, development and mine properties
Total non-current assets
Total assets
Liabilities
Current liabilities
Trade and other payables
Lease liabilities
Employee benefits
Provisions
Total current liabilities
Non-current liabilities
Lease liabilities
Provisions
Total non-current liabilities
Total liabilities
Net assets
Equity
Issued capital
Reserves
Accumulated losses
Total equity
Note
2022
$
2021
$
7(a)
7(b)
7(c)
8(a)
8(c)
8(b)
7(d)
8(c)
8(d)
8(d)
8(c)
8(d)
9(a)
9(b)
9(c)
175,444,065
25,657,074
5,734,693
286,267
278,079
166,996
181,465,025
26,102,149
640,623
229,692
41,549,942
42,420,257
223,885,282
4,515,149
80,235
169,661
85,947
4,850,992
197,622
4,208
201,830
5,052,822
218,832,460
79,941
-
21,736,854
21,816,795
47,918,944
790,551
-
75,235
153,889
1,019,675
-
27,998
27,998
1,047,673
46,871,271
231,179,318
65,748,642
9,508,419
3,364,591
(21,855,277)
(22,241,962)
218,832,460
46,871,271
The above Consolidated statement of Financial Position should be read in conjunction with the accompanying notes.
4747
Consolidated Statement of Changes in Equity
For the year ended 30 June 2022
Issued
capital
$
Reserves
$
Accumulated
Losses
$
Total equity
$
Note
35,433,060
3,343,899
(21,727,672)
17,049,287
-
-
-
-
(2,894,223)
(2,894,223)
(225,152)
-
(225,152)
(225,152)
(2,894,223)
(3,119,375)
Balance at 1 July 2020
Loss for the year
Other comprehensive income
Total comprehensive income for the year
Transactions with owners in their capacity as
owners:
Contributions of equity
Share issue costs
Share based payment
Issue of unlisted options to brokers
Transfer from option reserve to accumulated losses on
options expired/exercised
9(b)
Balance at 30 June 2021
Loss for the year
Other comprehensive income
Total comprehensive income for the year
Transactions with owners in their capacity as owners:
Contributions of equity
Share issue costs
Share based payment
Issue of performance rights
Issue of unlisted options to brokers
9(b)
Transfer from option reserve to accumulated losses on
options expired/exercised
9(a)
34,343,799
(2,625,776)
108,931
-
-
-
-
-
2,625,776
-
-
-
-
34,343,799
(2,625,776)
108,931
2,625,776
(2,379,932)
2,379,932
-
31,826,954
245,844
2,379,932
34,452,730
65,748,642
3,364,591
(22,241,962)
46,871,271
-
-
-
-
(5,683,095)
(5,683,095)
76,334
-
76,334
76,334
(5,683,095)
(5,606,761)
9(a)
175,575,639
(10,144,963)
-
-
1,800,461
625,129
9,711,684
-
-
-
-
-
175,575,639
(10,144,963)
1,800,461
625,129
9,711,684
(6,069,780)
6,069,780
-
-
-
-
-
Balance at 30 June 2022
231,179,318
9,508,419
(21,855,277)
218,832,460
165,430,676
6,067,494
6,069,780
177,567,950
The above consolidated statement of changes in equity should be read in conjunction with the accompanying notes.
48
LAKE RESOURCES ANNUAL REPORT 2022 Consolidated Statement of Cash Flows
For the year ended 30 June 2022
Cash flows from operating activities
Payments to suppliers
Income tax paid
Net cash (outflow) from operating activities
Cash flows from investing activities
Note
2022
$
2021
$
(7,990,430)
(2,432,98)
(688,666)
(2,432,983)
(8,679,096)
(2,432,983)
Payments for property, plant and equipment
8(a)
(615,061)
(79,745)
Payments for exploration and evaluation
Loans to related parties
Repayment of loans to related parties
Net cash (outflow) from investing activities
Cash flows from financing activities
(23,596,548)
(4,718,136)
(1,626,762)
470,448
-
-
(25,367,923)
(4,797,881)
Proceeds from issue of shares, net of transaction costs
9(a)
174,193,136
32,799,927
Proceeds to/from borrowings
Repayment of borrowings
Principal payments of lease liabilities
Lease liability on inception
Interest charge
Net Proceeds from foreign exchange contracts
18(b)(II)
18(b)(II)
-
-
200,000
(167,500)
(19,440)
289,208
8,090
9,363,016
-
-
-
-
Net cash inflow from financing activities
183,834,010
32,832,427
Net increase in cash and cash equivalents
Cash and cash equivalents at the beginning of the financial year
149,786,991
25,601,563
25,657,074
55,511
Cash and cash equivalents at end of year
7(a)
175,444,065
25,657,074
The above consolidated statement of cash flows should be read in conjunction with the accompanying notes.
4949
Notes to the Consolidated Financial Statements
For the year ended 30 June 2022
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.
(a) Basis of preparation
These general purpose consolidated financial statements have been prepared in accordance with Australian Accounting
Standards and Interpretations issued by the Australian Accounting Standards Board and the Corporations Act 2001. Lake
Resources NL is a for-profit entity for the purpose of preparing the consolidated financial statements.
Compliance with IFRS
The consolidated financial statements of the Lake Resources NL and its subsidiaries (Consolidated entity) also comply with
International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB).
Historical cost convention
The consolidated financial statements have been prepared under the historical cost convention.
(i) New standards and interpretations not yet adopted
Certain new accounting amendments to accounting standards and interpretations have been published that are not
mandatory for 30 June 2022 reporting years and have not been early adopted by the Consolidated entity. The Consolidated
entity’s assessment of the impact of these new standards and interpretations is set out below. These standards, amendments
or interpretations are not expected to have a material impact on the Consolidated entity in the current or future reporting years
and on foreseeable future transactions.
(b) Critical accounting estimates
The preparation of consolidated 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
consolidated financial statements, are disclosed in note 2.
(b) 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. The
adoption of these Accounting Standards and Interpretations did not have any significant impact on the financial performance
or position of the Consolidated entity.
50
LAKE RESOURCES ANNUAL REPORT 2022 Notes to the Consolidated Financial Statements
For the year ended 30 June 2022
1 Significant accounting policies (continued)
(c) Impact of Coronavirus (COVID-19) (continued)
Background
The spread of novel coronavirus (COVID-19), a respiratory illness caused by a new virus, was declared a public health emergency
by the World Health Organisation in January 2020 and upgraded to a global pandemic in March 2020. This pandemic has
severely impacted many local economies around the globe. In many countries, businesses are being forced to cease or limit
operations for long or indefinite periods of time. Measures taken to contain the spread of the virus, including travel bans,
quarantines, social distancing, and closures of non-essential services have triggered significant disruptions to businesses
worldwide, resulting in an economic slowdown. Global stock markets have also experienced great volatility and a significant
weakening.
Governments and central banks have responded with monetary and fiscal interventions to stabilise economic conditions.
The Consolidated entity has considered the effects of these events based on the information at the date of issuing this
financial report and potential effects of business and other market volatility in preparing its financial statements.
Impact and considerations for the financial statements / report of the Consolidated entity
Judgement has been exercised in considering the impacts that the Coronavirus (COVID-19) pandemic has had, or may have,
on the consolidated entity based on known information. The Consolidated entity has determined that its financial position
and performance will not be significantly or materially impacted by COVID-19 when considering the nature of the Company’s
operations, supplier base, and levels of activity to date. In particular, the Directors have assessed the potential impact on:
• the Consolidated entity’s ability to raise capital and loan funds.
• conducting day to day exploration and development activities at its flagship Kachi Lithium Brine Project in Catamarca
Province and its Cauchari Lithium Brine Project in Jujuy Province and
• the activities of the Consolidated entity’s technology partner, Lilac Solutions Inc (Lilac), in California.
The Consolidated entity was successful in raising of equity in 2022 and experienced strong levels of exercise of its listed
options by June 2022 raising an additional $175,575,639. The Consolidated entity announced the receipt of formal expressions
of interest from UK Export Finance and Canada’s Export Credit Agency to work with the Consolidated entity to provide the
project finance for the development at approximately 70% of the project cost.
Given the dynamic and evolving nature of COVID-19, limited recent experience of the economic and financial impacts of such
a pandemic, it is not practicable to estimate the potential impact, positive or negative, after the reporting date. The situation
is rapidly developing and is dependent on measures imposed by the Australian Government, the Argentine Government,
and other countries, such as maintaining social distancing requirements, quarantine, travel restrictions and any economic
stimulus that may be provided. The Company will continue to monitor events as they occur to ensure that the potential
impacts of the pandemic are minimised whilst ensuring safe working conditions for staff and contractors.
Other than adjusting events that provide evidence of conditions that existed at the end of the reporting period, the impact of
events that arise after the reporting period will be accounted for in future reporting periods.
5151
Notes to the Consolidated Financial Statements
For the year ended 30 June 2022
1 Significant accounting policies (continued)
(d) 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 $5,606,761 and net cash outflows from operating and investing activities of $30,528,461 for the
year ended 30 June 2022. At 30 June 2022, the Company had net current assets of $176,614,032 including $175,444,065 in cash
and cash equivalents.
The Directors are satisfied with the ability of the Consolidated entity to continue as a going concern based on the
following factors:
• During the year ended 30 June 2022, unlisted Bonus Options were issued and exercised (86,094,394 options), with
an exercise price of A$0.35 by the due date being 15 October 2021. This raised in excess of $30,133,038 capital for the
Consolidated entity. A 1-for-1 Additional Bonus Options issue also commenced in October 2021, at an exercise price of A$0.75
and an expiry date of 15 June 2022. The company subsequently made application to the ASX to have these shares listed
(LKEOC). The bonus options were mostly converted, with cancellation of 3,251,249 unexercised options. The bonus options
issue raised a further A$62,171,359 to the Company’s cash reserves by June 2022, prior to the final investment decision on
the Kachi Project.
• In addition to the bonus options, the Consolidated entity has previously issued options to investors and others with exercise
prices that are now less than the current share price.
• The Directors have prepared cash forecasts which indicate that current funds are sufficient to meet the current year’s
budgeted program of work including the DFS and associated drilling, and exploration work, and the required hydrological,
environmental and technical studies planned for the forthcoming 12-month period
• On 22 September 2021, Lake Resources NL (ASX: LKE; OTC: LLKKF) and Lilac Solutions, Inc. announced that after extensive
successful test-work, they have entered into a partnership for technology and funding to develop Lake’s Kachi Lithium Brine
Project (Kachi) in Argentina. Under the terms of the partnership earn-in, Lilac is able to achieve an equity stake in the Kachi
project with certain corresponding project funding obligations, while providing its leading technology to advance the project.
In accordance with the executed agreement Lilac agrees to:
• Engage, at its Cost, in a demonstration of the efficacy of the Lilac Project Technology with Kachi Project Brines using
pilot-scale module(s) at Lilac’s facility in Oakland, California, USA; and
• Assist with the development of the Pilot Project, by:
1. funding, at its own Cost, the construction, deployment and operation by Lilac of an ion exchange lithium extraction
plant based on the Lilac Project Technology at the Kachi Project (Lilac Pilot Unit); and
2. by completing the Testing.
• On 7 March 2022 the company issued 40,000,000 fully paid ordinary shares at a price of $0.975 to raise $39,000,000
before costs.
52
LAKE RESOURCES ANNUAL REPORT 2022 Notes to the Consolidated Financial Statements
For the year ended 30 June 2022
1 Significant accounting policies (continued)
(d) Going concern (continued)
Based on successful capital raising to date, and likely further capital raising in the US, the Directors are confident that the
Consolidated entity is well funded for the current planned works, as budgeted, for at least the next twelve months from the
date of this report. As such, the going concern basis of preparation for the financial report as at 30 June 2022 is deemed
appropriate.
(e) 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 15.
(f) 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 16.
The assets, liabilities and results of all subsidiaries are fully consolidated into the financial statements of the Consolidated
entity from the date on which control is obtained by the Consolidated entity. The consolidation of a subsidiary is discontinued
from the date that control ceases. Intercompany transactions, balances and unrealised gains or losses on transactions
between consolidated 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 Consolidated entity.
(g) Operating segment
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.
(h) Foreign currency translation
(i) Functional and presentation currency
The consolidated financial statements are presented in Australian dollars.
The functional currency of each of the entities in the Consolidated entity is measured using the currency of the primary
economic environment in which the entity operates. The Consolidated entity’s financial statements are presented in Australian
dollars which is the functional and presentation currency of Lake Resources N.L. (the parent and reporting entity).
(ii) Transactions 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 profit or loss and other
comprehensive income, except where deferred in equity as a qualifying cash flow or net investment hedge.
5353
Notes to the Consolidated Financial Statements
For the year ended 30 June 2022
1 Significant accounting policies (continued)
(h) Foreign currency translation (continued)
(ii) Transactions and balances (continued)
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 profit or loss
and other comprehensive income.
(iii) Foreign operations
The functional currency of the Consolidated entity’s foreign operations in Argentina is US Dollars (USD). From 1 July 2018,
Argentina was declared a hyperinflationary economy due to the significant devaluation of the Argentine Peso (ARS). However, as
the functional currency of the Argentine subsidiaries is USD, there was no material impact arising from the hyperinflationary
effects of the ARS to the Consolidated entity’s consolidated financial report.
The assets and liabilities of foreign operations are translated into Australian dollars (the presentation currency) 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.
(i) Financial instruments
Investments and other financial assets are initially measured at fair value. Transaction costs are included as part of the initial
measurement, except for financial assets at fair value through profit or loss. Such assets are subsequently measured at either
amortised cost or fair value depending on their classification. Classification is determined based on both the business model
within which such assets are held and the contractual cash flow characteristics of the financial asset unless, an accounting
mismatch is being avoided.
(i) Financial assets at amortised cost
Financial assets at amortised cost are held for collection of contractual cash flows where those cash flows represent solely
payments of principal and interest. They are carried at amortised cost using the effective interest rate method. Gains and
losses are recognised in profit or loss when the asset is derecognised or impaired.
(ii) Financial assets at fair value through profit or loss
Financial assets not measured at amortised cost or at fair value through other comprehensive income are classified as
financial assets at fair value through profit or loss. Typically, such financial assets will be either: (i) held for trading, where they
are acquired for the purpose of selling in the short-term with an intention of making a profit, or a derivative; or (ii) designated
as such upon initial recognition where permitted. Fair value movements are recognised in profit or loss.
(iii) Financial assets at fair value through comprehensive income
Financial assets at fair value through other comprehensive income include equity investments which the Consolidated entity
intends to hold for the foreseeable future and has irrevocably elected to classify them as such upon initial recognition.
54
LAKE RESOURCES ANNUAL REPORT 2022 Notes to the Consolidated Financial Statements
For the year ended 30 June 2022
1
Significant accounting policies (continued)
(i) Financial instruments (continued)
(iv) Impairment of financial assets
The Consolidated entity recognises a loss allowance for expected credit losses on financial assets which are either measured
at amortised cost or fair value through other comprehensive income. The measurement of the loss allowance depends upon
the Consolidated entity’s assessment at the end of each reporting period as to whether the financial instrument’s credit
risk has increased significantly since initial recognition, based on reasonable and supportable information that is available,
without undue cost or effort to obtain.
Where there has not been a significant increase in exposure to credit risk since initial recognition, a 12-month expected credit
loss allowance is estimated. This represents a portion of the asset’s lifetime expected credit losses that is attributable to a
default event that is possible within the next 12 months. Where a financial asset has become credit impaired or where it is
determined that credit risk has increased significantly, the loss allowance is based on the asset’s lifetime expected credit
losses. The amount of expected credit loss recognised is measured on the basis of the probability weighted present value of
anticipated cash shortfalls over the life of the instrument discounted at the original effective interest rate.
For financial assets measured at fair value through other comprehensive income, the loss allowance is recognised within other
comprehensive income. In all other cases, the loss allowance is recognised in profit or loss.
(j)
Income tax
The income tax expense or credit for the year is the tax payable on the current year’s taxable income based on the applicable
income tax rate for each jurisdiction adjusted by changes in deferred tax assets and liabilities attributable to temporary
differences and to unused tax losses.
The current income tax charge is calculated on the basis of the tax laws enacted or substantively enacted at the end of the
reporting year in the countries where the company and its subsidiaries operate and associates operate and generate taxable
income. Management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax
regulation is subject to interpretation and considers whether it is probable that a taxation authority will accept an uncertain
tax treatment. The Consolidated entity measures its tax balances either based on the most likely amount or the expected
value, depending on which method provides a better prediction of the resolution of the uncertainty.
Deferred income tax is provided in full, using the liability method, on temporary differences arising between the tax bases of
assets and liabilities and their carrying amounts in the consolidated consolidated financial statements. However, deferred tax
liabilities are not recognised if they arise from the initial recognition of goodwill. Deferred income tax is also not accounted for
if it arises from initial recognition of an asset or liability in a transaction other than a business combination that at the time
of the transaction affects neither accounting nor taxable profit or loss and does not give rise to equal taxable and deductible
temporary differences. Deferred income tax is determined using tax rates (and laws) that have been enacted or substantively
enacted by the end of the reporting year and are expected to apply when the related deferred income tax asset is realised or the
deferred income tax liability is settled.
The deferred tax liability in relation to investment property that is measured at fair value is determined assuming the property
will be recovered entirely through sale.
Deferred tax assets are recognised only if it is probable that future taxable amounts will be available to utilise those temporary
differences and losses.
5555
Notes to the Consolidated Financial Statements
For the year ended 30 June 2022
1
Significant accounting policies (continued)
(j)
Income tax (continued)
Deferred tax liabilities and assets are not recognised for temporary differences between the carrying amount and tax bases of
investments in foreign operations where the company is able to control the timing of the reversal of the temporary differences
and it is probable that the differences will not reverse in the foreseeable future.
Deferred tax assets and liabilities are offset where there is a legally enforceable right to offset current tax assets and liabilities
and where the deferred tax balances relate to the same taxation authority. Current tax assets and tax liabilities are offset where
the entity has a legally enforceable right to offset and intends either to settle on a net basis, or to realise the asset and settle
the liability simultaneously.
(k) 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.
(l) Leases
Assets and liabilities arising from a lease are initially measured on a present value basis. Lease liabilities include the net
present value of the following lease payments:
Lease payments to be made under reasonably certain extension options are also included in the measurement of the liability.
Lease payments are allocated between principal and finance cost. The finance cost is charged to profit or loss over the lease
period so as to produce a constant periodic rate of interest on the remaining balance of the liability for each period.
Right-of-use assets are measured at cost comprising the following:
• the amount of the initial measurement of lease liability
• any lease payments made at or before the commencement date less any lease incentives received
• any initial direct costs, and
• restoration costs.
Entity-specific details about the group’s leasing policy are provided in note 8(c).
56
LAKE RESOURCES ANNUAL REPORT 2022 Notes to the Consolidated Financial Statements
For the year ended 30 June 2022
1
Significant accounting policies (continued)
(m) 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.
(n) Other receivables
Other receivables are recognised at amortised cost, less any allowance for expected credit losses.
(o) 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 Consolidated entity’s share of net assets of the joint venture.
(p) 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.
(q) Impairment of non-financial assets
At each reporting date, the Consolidated entity assesses whether there is any indication that a 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.
Where it is not possible to estimate the recoverable amount of an individual asset, the Consolidated entity estimates the
recoverable amount of the cash-generating unit to which the asset belongs.
5757
Notes to the Consolidated Financial Statements
For the year ended 30 June 2022
1
Significant accounting policies (continued)
(r) Property, plant and equipment
The Consolidated entity’s accounting policy for land and buildings is explained in note 8(a). All other property, plant and
equipment is stated at historical cost less depreciation. Historical cost includes expenditure that is directly attributable to the
acquisition of the items. Cost may also include transfers from equity of any gains or losses on qualifying cash flow hedges of
foreign currency purchases of property, plant and equipment.
Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when
it is probable that future economic benefits associated with the item will flow to the Consolidated entity and the cost of the
item can be measured reliably. The carrying amount of any component accounted for as a separate asset is derecognised when
replaced. All other repairs and maintenance are charged to profit or loss during the reporting year in which they are incurred.
The depreciation methods and years used by the Consolidated entity are disclosed in note 8(a).
The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each reporting year.
An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying amount is greater
than its estimated recoverable amount (note 1(q)).
Gains and losses on disposals are determined by comparing proceeds with carrying amount. These are included in profit
or loss. When revalued assets are sold, it is Consolidated entity policy to transfer any amounts included in other reserves in
respect of those assets to retained earnings.
(s) 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 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.
(t) Borrowings
Loans and borrowings are initially recognised at the fair value of the consideration received, net of transaction costs. They are
subsequently measured at amortised cost using the effective interest method.
Where there is an unconditional right to defer settlement of the liability for at least 12 months after the reporting date, the
loans or borrowings are classified as non-current.
(u) Finance costs
Finance costs attributable to qualifying assets are capitalised as part of the asset. All other finance costs are expensed in the
period in which they are incurred.
Other borrowing costs are expensed in the year in which they are incurred.
58
LAKE RESOURCES ANNUAL REPORT 2022 Notes to the Consolidated Financial Statements
For the year ended 30 June 2022
1
Significant accounting policies (continued)
(v) Employee benefits
Short-term employee benefits
Liabilities for wages and salaries, including non-monetary benefits, annual leave and long service leave expected to be settled
wholly within 12 months of the reporting date are measured at the amounts expected to be paid when the liabilities are settled.
Defined contribution superannuation expense
Contributions to defined contribution superannuation plans are expensed in the period in which they are incurred.
Other long-term employee benefit obligations
The Consolidated entity also has liabilities for long service leave and annual leave that are not expected to be settled wholly
within 12 months after the end of the year in which the employees render the related service. These obligations are therefore
measured as the present value of expected future payments to be made in respect of services provided by employees up to
the end of the reporting year using the projected unit credit method. Consideration is given to expected future wage and salary
levels, experience of employee departures and years of service. Expected future payments are discounted using market yields
at the end of the reporting year of high-quality corporate bonds with terms and currencies that match, as closely as possible,
the estimated future cash outflows.
The obligations are presented as current liabilities in the balance sheet if the entity does not have an unconditional right to
defer settlement for at least 12 months after the reporting year, regardless of when the actual settlement is expected to occur.
Share-based payments
Equity-settled and cash-settled share-based compensation benefits are provided to employees and consultants.
Equity-settled transactions are awards of shares, or options over shares, that are provided to employees and consultants 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.
The cost of equity-settled transactions are measured at fair value on grant date. Fair value is 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:
5959
Notes to the Consolidated Financial Statements
For the year ended 30 June 2022
1
Significant accounting policies (continued)
(v) Employee benefits (continued)
Share-based payments (continued)
• 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.
(w) Fair Value of Assets and Liabilities
The Consolidated entity 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
assets or liabilities measured at fair value.
Fair value is the price the Consolidated entity would receive to see an asset or would have to pay to transfer a liability
in an orderly (i.e., 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.
60
LAKE RESOURCES ANNUAL REPORT 2022 Notes to the Consolidated Financial Statements
For the year ended 30 June 2022
1
Significant accounting policies (continued)
(w) Fair Value of Assets and Liabilities (continued)
Fair value hierarchy
Assets and liabilities measured at fair value are classified, into three levels, using a fair value hierarchy that reflects the
significance of the inputs used in making the measurements, using a three level hierarchy, based on the lowest level of input
that is significant to the entire fair value measurement, being:
Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the
measurement date
Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or
indirectly
Level 3: Unobservable inputs for the asset or liability
Classifications are reviewed at each reporting date and transfers between levels are determined based on a reassessment of
the lowest level of input that is significant to the fair value measurement.
For recurring and non-recurring fair value measurements, external valuers may be used when internal expertise is either not
available or when the valuation is deemed to be significant. External valuers are selected based on market knowledge and
reputation. Where there is a significant change in fair value of an asset or liability from one period to another, an analysis
is undertaken, which includes a verification of the major inputs applied in the latest valuation and a comparison, where
applicable, with external sources of data.
Refer to Note 20 for the disclosures on inputs used in the fair value measurement of share based payments granted during the
year.
(x) Provisions
Provisions for legal claims, service warranties and make good obligations are recognised when the Consolidated entity has a
present legal or constructive obligation as a result of past events, it is probable that an outflow of resources will be required to
settle the obligation and the amount can be reliably estimated. Provisions are not recognised for future operating losses.
Provisions are measured using the best estimate of the amounts required to settle the obligation at the end of the
reporting period.
(y) 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.
(z) 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.
6161
Notes to the Consolidated Financial Statements
For the year ended 30 June 2022
Significant accounting policies (continued)
(z) Earnings per share (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.
(aa) 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.
Value Added Tax (VAT) in Argentina is assessable on the sale value of goods and services. To the extent that VAT credits on
purchased goods and services cannot be claimed as refunds, the amount is recognised in income tax expense.
(ab)Comparative Figures
When required by Accounting Standards, comparative figures have been adjusted to conform to changes in presentation for
the current financial year.
62
LAKE RESOURCES ANNUAL REPORT 2022 Notes to the Consolidated Financial Statements
For the year ended 30 June 2022
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.
(a) 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.
Refer to Note 20 for the disclosures on inputs used in the fair value measurement of share based payments granted during
the year.
(b) 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. For the basis of determination the following was considered:
(a) the period for which the entity has the right to explore in the specific area has expired during the period or will expire in
the near future, and is not expected to be renewed - all leases were reviewed and are current with the intention to renew;
(b) substantive expenditure on further exploration for and evaluation of mineral resources in the specific area is neither
budgeted nor planned - there is a budget for all project up until 2023;
(c) exploration for and evaluation of mineral resources in the specific area have not led to the discovery of commercially
viable quantities of mineral resources and the entity has decided to discontinue such activities in the specific area -
there is planned exploration for all current projects;
(d) sufficient data exist to indicate that, although a development in the specific area is likely to proceed, the carrying
amount of the exploration and evaluation asset is unlikely to be recovered in full from the successful development or
by sale - studies conducted indicate commercial viable qualities of mineral resources exist to the effect that the cost of
the development including carrying amount to date will be recovered.
6363
Notes to the Consolidated Financial Statements
For the year ended 30 June 2022
2 Operating segments
Segment information
The Consolidated entity currently operates entirely in the mineral exploration industry with interests in Argentina 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
Australia
Total
2022
$
2021
$
2022
$
2021
$
2022
$
2021
$
(Expenses)/Other income
4,139,744
Loss after income tax expense
for the year attributable to the
owners of Lake Resources NL
4,139,744
-
-
(9,822,839)
(2,894,223)
(5,683,095)
(2,894,223)
(9,822,839)
(2,894,223)
(5,683,095)
(2,894,223)
Additions during the year
Exploration expenditure
20,139,126
4,911,133
3,636,585
Property, plant and
equipment
Right-of-Use Lease
Asset
605,889
79,746
9,204
229,692
-
-
-
-
-
-
-
-
-
23,775,711
4,911,133
615,093
79,746
229,692
-
-
-
Total segment assets
32,078,749
21,973,065
191,806,536
25,945,878
223,885,285
47,918,943
Total segment liabilities
3,351,977
350,185
1,700,847
697,488
5,052,824
1,047,673
3
Foreign exchange gains and losses
Foreign exchange contracts (USD/ARS swaps)
Realized gain or loss
Unrealized gain or loss
64
2022
$
2021
$
9,363,016
16,434
(2,427,077)
6,952,373
-
303,778
(4,306)
299,472
LAKE RESOURCES ANNUAL REPORT 2022 Notes to the Consolidated Financial Statements
For the year ended 30 June 2022
4
Loss before income tax
Loss before income tax includes the following specific expenses:
Administrative expenses
Entertainment - Tax - Deductable
Fines & Penalties - Tax - Non-Deductible
Other
Corporate expenses
Allowance for credit losses
Travel
Advertising
Other
Filing Fees - ASIC
Investor Relations
Share registry maintenance
Investor Relations
Share Registry Maintenance
Marketing Expenses - Advertising
Auditors fees
Employee benefit expense
Employee benefits expense
Share based payment
Share based payments expense
Consultancy and legal costs
Legal expenses
Directors fees
Other
Consulting Fee
Net Finance costs
Finance income
Interest and finance charges payable for lease liabilities
Interest expense
2022
$
2021
$
(21,285)
(1,252)
891,522
868,985
130,682
-
103,769
234,451
-
146,352
570,872
-
-
-
-
-
1,345,086
710,659
299,837
489,960
21,772
10,475
105,855
9
588,347
326,198
-
-
-
70,585
3,416,414
1,269,593
1,835,589
727,810
2,425,591
108,931
669,050
244,143
481,171
1,979,687
3,374,051
(34,804)
8,090
1,588
76,041
74,100
188,714
212,018
550,873
-
-
-
6565
Notes to the Consolidated Financial Statements
For the year ended 30 June 2022
4
Loss before income tax (continued)
Superannuation expense
Defined contribution superannuation expense
131,026
28,995
2022
$
2021
$
5
Income tax expense
(a) Reconciliation
Current tax on profits for the year
Deferred income tax benefit
Aggregated Income tax expense/(benefit)
(b) Numerical reconciliation of income tax expense
(1,413,010)
(733,543)
2,101,676
688,666
733,543
-
The prima facie income tax on the profit/(loss) is reconciled to the income tax expense as follows:
(4,994,429)
(2,894,223)
Prima facie tax benefit 30% (2021 - 26%) on loss before income tax
(1,498,329)
(752,498)
Add tax effect of:
Non deductible expenses
Argentinian tax inflation adjustment
Deferred tax asset not recognized
Income tax expense
761,457
(676,138)
2,101,676
688,666
18,955
-
733,543
-
The Consolidated entity has unrecouped, unconfirmed carry forward tax losses of approximately $46,204,476 million (2021:
$26,463,170 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 Consolidated entity 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 Consolidated entity continues to comply with the conditions for deductibility imposed by the law; and
(c)
no changes in tax legislation adversely affect the Consolidated entity in realising the benefit from the losses
66
LAKE RESOURCES ANNUAL REPORT 2022 Notes to the Consolidated Financial Statements
For the year ended 30 June 2022
5
Income tax expense (continued)
(c) Deferred tax assets
The balance comprises temporary differences attributable to:
Accrued expenses
Employee provisions
Business related costs (s 40-880)
Unrealised foreign exchange losses
Carry forward losses
Deferred tax assets not recognised in equity:
Capital Raising Expenses
Total deferred tax assets
Set-off of deferred tax liabilities pursuant to set-off provisions
Deferred tax assets not recognised
Net deferred tax assets
(d) Deferred tax liabilities
The balance comprises temporary differences attributable to:
Exploration Expenditure
Foreign Exchange Gain/(losses)
2022
$
2021
$
398,668
38,646
74,618
728,123
13,861,343
15,101,398
8,969
55,047
63,872
-
6,615,792
6,743,680
1,551,720
16,653,118
956,243
7,699,923
(5,893,145)
(2,367,829)
(10,759,973)
(5,332,094)
-
-
2022
$
2021
$
(5,893,145)
(2,321,076)
-
(46,753)
(5,893,145)
(2,367,829)
Total deferred tax liabilities
(5,893,145)
(2,367,829)
Set-off of deferred tax liabilities pursuant to set-off provisions
Net deferred tax liabilities
5,893,145
2,367,829
-
-
6767
Notes to the Consolidated Financial Statements
For the year ended 30 June 2022
6
Financial assets and financial liabilities
(a) Cash and cash equivalents
Current assets
Cash at bank
Deposits at call
(b) Trade receivables
Current assets
Other receivables
Provision for impairment
Loan receivable
2022
$
2021
$
145,154,034
25,657,074
30,290,031
-
175,444,065
25,657,074
2022
$
2021
$
4,656,850
424,431
-
(146,352)
1,077,773
-
5,734,693
278,079
Other receivables include amounts recoverable from Argentina tax authority in relation to VAT paid on purchases to suppliers
to date. Majority of the suppliers paid is in relation to exploration and evaluation costs. It is highly likely that the VAT will be
recoverable either before or after entering Production phase.
During the 2022 financial year a short-term loan for $1,077,773 was drawn by Mr. S.Promnitz. Due to the short term nature
of these receivables, their carrying value is assumed to approximate fair value. The maximum exposure to credit risk is the
carrying value of receivables. Collateral is not held as security. While the Directors have made their best endeavours to quantify
the balance of the loan owing, a number of transactions are disputed by Mr Promnitz and the Group awaits documentation
from Mr Promnitz to support his position. The matter is ongoing but the Directors expect full recovery of the amounts owing.
(c) Other current assets
Prepayments
Deposits
68
2022
$
2021
$
280,906
161,996
5,361
5,000
286,267
166,996
LAKE RESOURCES ANNUAL REPORT 2022 Notes to the Consolidated Financial Statements
For the year ended 30 June 2022
6
Financial assets and financial liabilities (continued)
(d) Trade and other payables
Current liabilities
Trade payables
Accrued expenses
Payroll tax and other statutory liabilities
(e) Current liabilities - borrowings
Short term loans
2022
$
2021
$
3,020,513
1,328,895
165,741
4,515,149
637,163
35,875
117,513
790,551
During the 2021 financial year a short-term loan for $200,000 was drawn and repaid in cash and through an issue of shares
(refer below). A loan service fee of $27,500 and $32,500 of principal was paid through an issue of shares (refer Note 20(d)).
Advances from Director, Mr. S Promnitz
Loan drawn
Loan service fee
Repayment by cash
Repayment by share issue
Closing balance
7 Non-financial assets and liabilities
(a) Property, plant and equipment
Plant and Equipment
Cost
Accumulated depreciation
Total plant and equipment
2022
$
2021
$
-
-
-
-
-
200,000
27,500
(167,500)
(60,000)
-
Consolidated
30 June 2022
$
30 June 2021
$
54,128
(5,399)
48,729
16,790
(5,763)
11,027
6969
Notes to the Consolidated Financial Statements
For the year ended 30 June 2022
7 Non-financial assets and liabilities (continued)
(a) Property, plant and equipment (continued)
Furniture, fittings and equipment
Cost
Accumulated depreciation
Total furniture, fittings and equipment
Motor vehicles
Cost
Accumulated depreciation
Total machinery and vehicles
Building improvement
Cost
Accumulated depreciation
Total building improvement
Other property plant and equipment
Cost
Accumulated depreciation
Total other property plant and equipment
Total property, plant and equipment
Consolidated
30 June
2022
$
30 June
2021
$
65,357
(3,810)
61,547
405,744
(47,316)
358,428
72,150
(3,038)
69,112
125,503
(22,696)
102,807
640,623
12,666
(3,118)
9,548
74,670
(17,254)
57,416
1,435
(553)
882
2,228
(1,160)
1,068
79,941
Furniture,
fittings
and
equipment
$
Machinery
and
vehicles
$
Plant and
equipment
$
Building
improvements
$
Other property,
plant and
equipment
$
Total
$
30 June 2022
Carrying amount at 1 July 2022
Additions
Depreciation charge
11,027
37,338
364
9,548
52,691
57,416
331,075
(692)
(30,063)
Carrying amount at 30 June 2022
48,729
61,547
358,428
882
70,715
(2,485)
69,112
1,068
79,941
123,275
615,094
(21,536)
(54,412)
102,807
640,623
70
LAKE RESOURCES ANNUAL REPORT 2022 Notes to the Consolidated Financial Statements
For the year ended 30 June 2022
7 Non-financial assets and liabilities (continued)
(a) Property, plant and equipment (continued)
30 June 2021
Carrying amount at 1 July 2021
Additions
Depreciation charge
Carrying amount at 30 June 2021
-
16,790
(5,763)
11,027
532
12,134
(3,118)
9,548
-
74,670
(17,254)
57,416
-
1,435
(553)
882
-
2,228
(1,160)
1,068
532
107,257
(27,848)
79,941
(i) Carrying amounts that would have been recognised if land and buildings were stated at cost
If freehold land and buildings were stated on the historical cost basis
(ii) Revaluation, depreciation methods and useful lives
Depreciation is calculated using the straight-line method to allocate the cost or revalued amounts of the assets, net of their
residual values, over their estimated useful lives as follows:
• Buildings
• Machinery
• Vehicles
25 - 40 years
10 - 20 years
3 - 5 years
• Furniture, fittings and equipment 3 - 8 years
Furniture, fittings and equipment include assets received in the form of free store fit outs which are recognised at their fair
value. These assets and other leasehold improvements are depreciated over the shorter of their useful life or the lease term,
unless the entity expects to use the assets beyond the lease term.
All other property, plant and equipment is recognised at historical cost less depreciation.
(b) Exploration and evaluation, development and mine properties
Exploration and evaluation asset
Cost
Reconciliations
2022
$
2021
$
41,549,942
21,736,854
Reconciliations of the written down values at the beginning and end of the current and previous financial year are set out
below:
7171
Notes to the Consolidated Financial Statements
For the year ended 30 June 2022
7 Non-financial assets and liabilities (continued)
(b) Exploration and evaluation, development and mine properties (continued)
At 1 July 2020
Cost
Year ended 30 June 2021
Opening net book amount
Additions - direct exploration costs
Effect of foreign currency translation
Impairment - Chile exploration expenditure
Closing net book amount
At 30 June 2021
Cost
Year ended 30 June 2022
Opening net book amount
Additions - direct exploration costs
Effect of foreign currency translation
VAT Receivable
Closing net book amount
At 30 June 2022
Cost
Exploration
and evaluation
asset
$
17,352,504
17,352,504
4,911,133
(225,152)
(301,631)
21,736,854
21,736,854
21,736,854
23,496,549
(2,738,531)
(944,930)
41,549,942
41,549,942
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.
Right-of-use assets
Buildings
229,692
229,692
-
-
72
LAKE RESOURCES ANNUAL REPORT 2022
Notes to the Consolidated Financial Statements
For the year ended 30 June 2022
7 Non-financial assets and liabilities (continued)
(c) Leases
(i) Amounts recognised in the statement of financial position
The statement of financial position shows the following amounts relating to leases:
Lease liabilities
Current
Non-current
Additions to the right-of-use assets during the 2022 financial year were $258,111 (2021 - $nil)
(ii) Amounts recognised in the statement of other comprehensive income
Depreciation charge of right of use assets
2022
$
2021
$
80,235
197,622
277,857
28,419
28,419
-
-
-
-
-
(iii) The Consolidated entity leasing activities and how these are accounted for
Lease terms are negotiated on an individual basis and contain a wide range of different terms and conditions. The lease
agreements do not impose any covenants other than the security interests in the leased assets that are held by the lessor.
Leased assets may not be used as security for borrowing purposes.
The lease payments are discounted using the interest rate implicit in the lease. If that rate cannot be readily determined, which
is generally the case for leases in the Consolidated entity, the lessee’s incremental borrowing rate is used, being the rate that
the individual lessee would have to pay to borrow the funds necessary to obtain an asset of similar value to the right-of-use
asset in a similar economic environment with similar terms, security and conditions.
To determine the incremental borrowing rate, the Consolidated entity:
If a readily observable amortising loan rate is available to the individual lessee (through recent financing or market data)
which has a similar payment profile to the lease, then the Consolidated entity uses that rate as a starting point to determine
the incremental borrowing rate of 10%.
The Consolidated entity is exposed to potential future increases in variable lease payments based on an index or rate, which
are not included in the lease liability until they take effect. When adjustments to lease payments based on an index or rate
take effect, the lease liability is reassessed and adjusted against the right-of-use asset.
Right-of-use assets are generally depreciated over the shorter of the asset’s useful life and the lease term on a straight-line
basis. If the Consolidated entity is reasonably certain to exercise a purchase option, the right-of-use asset is depreciated over
the underlying asset’s useful life.
Payments associated with short-term leases of equipment and vehicles and all leases of low-value assets are recognised on a
straight-line basis as an expense in profit or loss. Short-term leases are leases with a lease term of 12 months or less without a
purchase option. Low-value assets comprise IT equipment and small items of office furniture.
7373
Notes to the Consolidated Financial Statements
For the year ended 30 June 2022
7 Non-financial assets and liabilities (continued)
(c) Leases (continued)
(iv) Extension and termination options
Extension and termination options are included in a number of property and equipment leases across the Consolidated
entity. These are used to maximise operational flexibility in terms of managing the assets used in the Consolidated entity’s
operations. The majority of extension and termination options held are exercisable only by the Consolidated entity and not by
the respective lessor.
Critical judgements in determining the lease term
In determining the lease term, management considers all facts and circumstances that create an economic incentive to
exercise an extension option, or not exercise a termination option. Extension options (or periods after termination options) are
only included in the lease term if the lease is reasonably certain to be extended (or not terminated).
(d) Employee benefit obligations
2022
Current
$
Non-
current
$
2021
Current
$
Non-
current
$
Provisions: Annual Leave - Australia
85,947
-
153,889
-
Provisions: Long service leave - Australia
-
4,208
-
27,998
Employee Benefits: Leave and other benefits payable - Argentina
169,661
-
75,235
-
Closing balance at 30 June
255,608
4,208
229,124
27,998
8 Equity
(a) Issued capital
Ordinary shares - fully paid
1,389,707,907
1,058,077,328
231,179,318
65,748,642
2022
Shares
2021
Shares
2022
$
2021
$
74
LAKE RESOURCES ANNUAL REPORT 2022 Notes to the Consolidated Financial Statements
For the year ended 30 June 2022
8 Equity (continued)
(a) Issued capital (continued)
(i) Movements in share capital:
Details
Opening balance 1 July 2020
Issue of shares - Placement
Conversion of Performance rights
Shares issued under CPA
Shares issued under CPA
Shares issued to expand CPA agreement
Shares issued under CPA
Shares issued under CPA
Issue of shares - SBI options
Issue of shares - Placement
Issue of shares - Placement
Issue of shares - Placement
Issue of shares - Share Purchase Plan
Listed options exercise
Less: Transaction costs arising on share issue - as cash
Less: Transaction cost arising on options issued - to brokers (20)b
Balance 30 June 2021
Issue of shares - Director share options
Issue of shares - Redcloud options
Issue of shares - Roth SBP options
Issue of shares - Lodge Partners options
Issue of shares - Roth SBP options
Issue of shares - Cannacord options
Issue of shares - SD Capital/GKB options
Issue of shares - Acuity Capital Holding
Listed options exercised
Listed options exercised
Issue of shares - Lekir Holdings
Less: Transaction costs arising on share issue - as cash
Less: Transaction cost arising on options issued - to brokers (20)b
Balance 30 June 2022
Ordinary shares
Notes
Number of
shares
Issue price
$
$
671,461,958
85,666,667
5,000,000
15,000,000
15,000,000
25,000,000
9,000,000
40,000,000
710,900
9,300,000
5,555,000
50,000
125,000,000
51,332,803
-
-
1,058,077,328
14,000,000
1,500,000
67,124,040
4,000,000
1,000,000
-
35,433,060
0.033
2,570,000
-
0.033
0.060
-
0.046
0.084
0.084
0.046
0.080
0.165
0.165
0.100
-
-
-
-
495,000
900,000
-
414,000
3,375,000
60,000
427,800
444,400
8,250
20,625,000
5,133,280
(1,511,372)
2,625,776
65,748,642
0.090
0.300
0.300
1,260,000
450,000
20,137,212
0.750
3,000,000
0.170
165,000
35,000,000
0.550
19,250,000
17,000
0.490
8,330
40,000,000
82,895,145
86,094,394
0.980
39,000,000
0.750
62,171,359
0.350
30,133,038
2,000
0.980
700
-
-
1,389,709,907
-
-
-
(433,279)
(9,711,684)
231,179,318
Ordinary shares entitle the holder to participate in dividends and the proceeds on the winding up of the Consolidated entity
in proportion to the number of and amounts paid on the shares held. The fully paid ordinary shares have no par value and the
Consolidated entity 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.
7575
Notes to the Consolidated Financial Statements
For the year ended 30 June 2022
8 Equity (continued)
(a) Issued capital (continued)
Ordinary shares (continued)
Issue of shares net of issue costs
Deduct shares in lieu of payments:
Share based payments (Note 20)
Equity settled loan repayments (Note 7(g)) Add back
Options issues as issue costs (Note 20)
Proceeds from issue of shares, net of transaction costs
2022
$
2021
$
$ 186,330,411
$ 30,315,582
(2,425,591)
(108,931)
-
(32,500)
(9,711,684)
2,625,776
174,193,136
32,799,927
(ii) Share based payment transactions in share capital movements
Issues of share capital and certain share issue cost during the year included the equity-settled share-based payment
transactions for the payment for fees and of services as detailed in Note 20.
(iii) Performance rights
Movements in Performance Rights were as follows:
Grant date
Expiry date
Balance at
the start of
the year
Granted
Converted
to Shares
Balance at
the end of
the year
Vested during
year but not
converted
Expired
during the
year
2022
24-Feb-22
2021
12-Sep-24
10,000,000
(2,500,000)
7,500,000
7,500,000
2,500,000
15-Aug-2019
15-Aug-24
15,000,000
-
(5,000,000)
10,000,000
-
On 15 August 2019, 15,000,000 Performance rights were issued to Directors following approval at the shareholder meeting of
15 August 2019. Of the performance rights granted to Mr Promnitz and Dr Lindsay 5 million rights vested on 30 April 2020 and
were issued on 31 August 2020.
The terms and conditions of performance rights on issue at 30 June 2021 affecting remuneration of directors and other key
management personnel in this financial year or future reporting years are as follows:
Grant date
Expiry date
No. of Rights
granted
Performance
hurdle
Performance
achieved
No. vested
and
exercised
No. vested
and not
exercised
No. expired
during the
year
15-Aug-2019
15-Aug-2019
5,000,000
PFS
15-Aug-2019
15-Aug-24
2,500,000
Pilot plants
15-Aug-2019
15-Aug-24
7,500,000
Investor
100%
100%
100%
5,000,000
2,500,000
5,000,000
2,500,000
Performance rights outcomes are as follows:
The Kachi Pre-Feasibility Study (PFS) completion resulted in 2,500,000 for S.Crow and 2,500,000 for S Promnitz vested in 2021
and converted into ordinary shares in 2022.
76
LAKE RESOURCES ANNUAL REPORT 2022 Notes to the Consolidated Financial Statements
For the year ended 30 June 2022
9 Equity (continued)
(a) Issued capital (continued)
(iii) Performance rights (continued)
Mr Crow’s 5 million performance rights vest dependent upon an investment partner signing an agreement to invest in the
Kachi project in Catamarca (Investor). At 30 June 2020 the probability of obtaining an investment partner was assessed at
5%. It has been confirmed that the project will be funded 70% by international credit agencies sourced by SD Capital and GKB
Ventures, with the remainder being provided by equity. It is now considered extremely likely that the vesting condition will be
achieved, hence an increase to 100% probability was disclosed at 30 June 2022. Due to Mr Promnitz’ resignation on the 17 June
2022, the unwinding of his remaining 2.5 million performance rights have taken place in the current financial year.
During the current financial period, an agreement to develop the Pilot Plant was signed with Lilac Solutions, with works
commencing on the Pilot Plant at site. It is considered that the probability of the performance hurdle being achieved is 100%, as
at 30 June 2022. Dr Lindsay’s remaining 2.5 million performance rights has now vested as the Pilot Plant is established on-site
at the Kachi project in Catamarca (Pilot Plant).
(iv) Performance shares
Movements in Performance Shares were as follows:
Grant date
Expiry date
Balance at the
start of the
year
Granted
Converted
to Shares/
Expired
Balance at
the end of
the year
Vested during
year but not
converted
2022
24-Feb-22
24-Feb-22
24-Feb-22
24-Feb-22
24-Feb-22
24-Feb-22
24-Feb-22
2021
12-Mar-23
12-Sep-23
12-Sep-24
1-Jun-22
1-Jun-22
1-Mar-23
1-Mar-23
139,285
167,142
250,714
92,343
147,749
147,749
73,874
139,285
167,142
250,714
92,343
147,749
147,749
73,874
92,343
147,749
1,142,665
1,142,665
240,092
-
-
-
-
-
7777
Notes to the Consolidated Financial Statements
For the year ended 30 June 2022
8 Equity (continued)
(a) Issued capital (continued)
(v) Options
Movements in options were as follows
Grant / Vest
Exercised Balance at 1
Expired
date
Expiry date
price
July 2021
Issued
Unexercised
Exercised
Issue to SBI listed
16-Sep-19
31-July-21
$0.09
15,000,000
Roth fee options
09-Mar-21
09-Mar-23
$0.30
11,250,000
Roth SBP options
27-Jan-21
09-Mar-23
$0.30
1,000,000
Red Cloud
24-Apr-21
24-May-23
$0.30
1,500,000
-
-
-
-
Cannacord Tranch
28-Jul-21
31-Dec-24
Peter Neilsen (CFO)
SD Capital / GKB
1-Aug-21
1-Aug-24
Lodge Partners
30-Aug-21
15-Jun-22
SLR Consulting
19-Jan-22
19-Jan-25
Gautam Parimoo
(COO)
14-Oct-21
25-Oct-24
Corporate Connect
16-Mar-22
01-Mar-23
Simon Francis
16-Mar-22
15-Oct-22
SD Capital
26-April-22
26-April-25
GKB Ventures
26-April-22
26-April-25
$0.55
-
$0.50
$0.75
$1.48
$0.57
$1.00
$0.75
$1.42
$1.42
- 35,000,000
-
-
-
-
-
-
-
-
-
2,000,000
5,780,000
4,000,000
1,000,000
2,000,000
100,000
225,000
1,036,122
1,036,122
Balance at
30 June
2022
-
-
-
-
-
(1,000,000)
(14,000,000)
(11,250,000)
(1,000,000)
(1,500,000)
(35,000,000)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
2,000,000
(17,000)
5,763,000
(4,000,000)
-
-
-
-
-
-
1,000,000
2,000,000
100,000
225,000
1,036,122
- 1,036,122
28,750,000
52,177,244
(1,000,000)
(66,767,000)
13,160,244
(vi) Capital risk management
Exploration companies such as Lake Resources NL are funded primarily by share capital. The Consolidated entity’s capital
comprises share capital supported by financial assets and financial liabilities.
Management controls the capital of the Consolidated entity 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
Consolidated entity is in its exploration stage. There are no externally imposed capital requirements.
(b) Other reserves
Capital profits reserve
Performance rights reserve
Foreign currency translation reserve
Option reserves
Total equity reserves
78
2022
$
2021
$
4,997
4,997
970,130
465,152
345,000
388,818
8,068,140
2,625,776
9,508,419
3,364,591
LAKE RESOURCES ANNUAL REPORT 2022 Notes to the Consolidated Financial Statements
For the year ended 30 June 2022
8 Equity (continued)
Other reserves (continued)
(i) Capital profits reserve
The capital profits reserve records non-taxable profits on sale of investments
(ii) 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. Once options in a series have all been exercised or have expired, the reserve
related to those options is transferred to accumulated losses.
(iii) 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. Once all performance rights in the series have vested or have expired, the reserve related to
those options is transferred to accumulated losses.
(iv) Foreign currency translation
The foreign currency translation reserve recognises exchange differences arising from the translation of the financial
statements of foreign operations to Australian dollars.
(v) Movements in reserves
Movements in each class of reserve during the current and previous financial year are set out below:
Capital profit
reserve
$
Option
reserve
$
Performance
Rights reserve
$
Other
Comprehensive
Income
$
Total
other
reserves
$
At 1 July 2020
4,997
2,379,932
345,000
613,970
3,343,899
Issued to brokers - capital raising
Transfer from option reserve to accumulated
losses on broker options expiry/exercise
Translation of foreign operations
-
-
-
2,625,776
(2,379,932)
-
-
-
-
-
-
2,625,776
(2,379,932)
(225,152)
(225,152)
At 30 June 2021
4,997
2,625,776
345,000
388,818
3,364,591
7979
Notes to the Consolidated Financial Statements
For the year ended 30 June 2022
8 Equity (continued)
(b) Other reserves (continued)
(V) Movements in reserves (continued)
Capital profit
reserve
$
Option
reserve
$
Note
Performance
rights
reserved
$
Other
Comprehensive
Income $
Total other
reserves
$
At 1 July 2021
4,997
2,625,776
345,000
388,818
3,364,591
Issued to brokers - capital raising
Transfer from option reserve to
accumulated losses on broker options
expiry/exercise
Translation of foreign operations
Share-based payment expenses
20
-
-
-
-
9,711,684
(6,069,780)
-
-
-
-
-
-
9,711,684
(6,069,780)
76,334
76,334
1,800,461
625,129
-
2,425,590
At 30 June 2022
4,997
8,068,141
970,129
465,152
9,508,419
(c) Accumulated losses
Balance 1 July
Loss after income tax expense for the year
Transfer from option reserve
Balance 30 June
9 Dividends
Note
2022
$
2021
$
(22,241,962)
(21,727,672)
(5,683,095)
(2,894,223)
9(b)(V)
6,069,780
2,379,933
(21,855,277)
(22,241,962)
There were no dividends paid, recommended or declared during the current or previous financial year.Financial instrument
10 Financial risk management
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.
(a) 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.
80
LAKE RESOURCES ANNUAL REPORT 2022
Notes to the Consolidated Financial Statements
For the year ended 30 June 2022
10 Financial instrument (continued)
(a) Foreign currency risk (continued)
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 foreign bank accounts in USD
and ARS which are used to fund its exploration activities in Argentina.
The carrying amount of the Consolidated entity’s foreign currency denominated financial instruments at the reporting date
were as follows, expressed in AUD.
US dollars
Pound Sterling
Canadian dollars
Argentina pesos
Total
Assets
Liabilities
2022
$
2021
$
2022
$
2021
$
10,236,259
7,790,842
266,365
-
-
-
-
95,397
37,017
578,239
29,696
2,294,900
10,814,498
7,820,538
2,693,679
129,323
51,159
21,539
152,453
354,474
A sensitivity analysis of the movement in exchange rate (based on the closing balance of the asset) is presented below:
2022
USD assets
USD liabilities
GBP liabilities
CAD liabilities
ARS liabilities
ARS assets
Total
2021
USD assets
USD liabilities
GBP liabilities
CAD liabilities
ARS liabilities
ARS assets
Total
AUD strengthen by 1%
AUD weaken by 1%
Impact on
Impact on
Profit before tax
Equity
Profit
before tax
$
$
$
Equity
$
(101,349)
38,031
103,397
37,278
(2,637)
(38,031)
2,691
(37,278)
(945)
(367)
(22,722)
(5,725)
(25,772)
(63,262)
(11)
11
945
374
23,181
5,841
25,261
62,009
(11)
11
(133,745)
(89,034)
136,429
87,270
77,908
(1,293)
(512)
(215)
(1,525)
297
74,660)
(127,789)
(77,908)
125,258
127,789
66,668
196,067
44
(44)
1,293
(125,258)
512
215
1,525
(297)
(65,348)
(192,184)
(43)
43
262,735
(74,660)
(257,532)
8181
Notes to the Consolidated Financial Statements
For the year ended 30 June 2022
10
Financial instrument (continued)
(b) Price risk
The Consolidated entity is not exposed to any significant price risk.
(c) Interest rate risk
Currently the Consolidated entity does not have any external borrowings subject to variable rates and therefore has minimal
interest rate risk.
(d) Credit risk
Generally, other receivables are written off when there is no reasonable expectation of recovery. Indicators of this include the
failure of a debtor to engage in a repayment plan, no active enforcement activity and a failure to make contractual payments
for a period greater than 1 year.
The Consolidated entity deemed its credit risk to be minimal as its financial assets are mainly cash held at financial
institutions with credit risk ratings of Aa3 (Moody’s) and AA- (Standard and Poors). The maximum exposure to credit risk at the
reporting date to recognised financial assets is the carrying amount, net of any provisions for impairment of those assets, as
disclosed in the statement of financial position and notes to the financial statements. The consolidated entity does not hold
any collateral.
(e) Liquidity risk
Vigilant liquidity risk management requires the consolidated entity to maintain sufficient liquid assets (mainly cash and cash
equivalents) and available liabilities to be able to pay debts as and when they become due and payable.
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.
(i) 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.
82
LAKE RESOURCES ANNUAL REPORT 2022 Notes to the Consolidated Financial Statements
For the year ended 30 June 2022
11 Financial instrument (continued)
(e) Liquidity risk (continued)
(i) Remaining contractual maturities (continued)
Contractual maturities of
financial liabilities
30 June 2022
Non-derivatives
Trade and Other payables
Lease liabilities
Total non-derivatives
30 June 2021
Non-derivatives
Trade and Other payables
Lease liabilities
Total non-derivatives
Weighted
average
interest rate
<1 year
1 - 2 years
2 - 5 years
> 5 years
Remaining
contractual
maturities
%
$
$
$
$
$
-
-
-
-
-
-
4,515,151
80,235
4,595,386
790,552
-
790,552
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
4,515,151
80,235
4,595,386
790,552
-
790,552
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.
11 Key management personnel disclosures
Directors Fees and/or Salary
Consulting Fees
Annual Leave
Other Benefits - relocation cost
Total Short Term Benefits
Post-employment benefits (superannuation)
Long service leave
Share-based payments
Total Long Term Benefits
Total Remuneration
2022
$
2021
$
1,626,099
788,692
391,453
232,543
100,000
91,000
65,912
-
2,350,095
945,604
87,135
18,158
1,739,173
33,835
27,998
-
1,844,466
61,833
4,194,561
1,007,437
8383
Notes to the Consolidated Financial Statements
For the year ended 30 June 2022
13 Remuneration of auditors
During the financial year the following fees were paid or payable for services provided by BDO Audit Pty Ltd, the auditor of the
Consolidated entity.
(a) Audit Services
Audit and review of financial statements
BDO Audit Pty Ltd
Other services
Tax compliance services
Non-audit services
2022
$
2021
$
489,960
70,585
55,288
-
BDO provided non-audit services of $55,288 during the financial year ended 30 June 2021. The Directors are satisfied that
the provision of non-audit services is compatible with the general standard of independence for auditors imposed by the
Corporations Act 2001. The Directors are satisfied that the provision of non-audit services did not compromise the auditor
independence requirements of the Corporations Act 2001 because none of the services undermine the general principles
relating to auditor independence as set out in APES 110 Code of Ethics for Professional Accountants.
14 Related party transactions
(a) Parent entities
Lake Resources NL is the parent entity
(b) Subsidiaries
Interests in subsidiaries are set out in note 16.
(c) Key management personnel
Disclosures relating to key management personnel are set out in note 12 and the remuneration report included in the directors’
report.
(d) Transactions with other related parties
The following transactions occurred with related parties:
84
LAKE RESOURCES ANNUAL REPORT 2022 Notes to the Consolidated Financial Statements
For the year ended 30 June 2022
13 Related party transactions (continued)
(d) Transactions with other related parties (continued)
Payment for services
Consultancy services provided by companies associated with Mr Stuart Crow (Director)
96,600
74,100
2022
$
2021
$
Consultancy services provided by a Consolidated entity associated with Dr Nicholas Lindsay
(Director)
Consultancy services provided by former CFO Garry Gill (Executive)
Receivable from and (payable to) related parties
Consultancy services and directors’ fees provided by an entity associated with Mr
Stuart Crow
Consultancy services provided by an entity associated with Dr Nicholas Lindsay
(Director)
Net advances to Mr Stephen Promnitz
186,593
108,260
391,453
16,900
-
91,000
2022
$
2021
$
-
-
16,500
21,064
1,077,773
(142,249)
1,077,773
(104,685)
(e) Terms and conditions
Disclosures relating to the advance to Mr Promnitz:
• The outstanding balance at 30 June 2022 was $1,077,773 (2021: $142,249)
• The terms and conditions at June 2022 of the advances are unsecured and has no personal guarantees.
• No provision for credit loss been recognised.
14 Parent entity financial information
(a) Summary financial information
Statement of financial position Current assets
Total assets
Current liabilities
Total liabilities
2022
$
2021
$
197,851,828
25,772,480
219,285,920
47,567,734
1,812,505
1,816,713
668,465
696,463
8585
Notes to the Consolidated Financial Statements
For the year ended 30 June 2022
15 Parent entity financial information (continued)
(a) Summary financial information (continued)
Shareholders’ equity
Issued capital
Reserves
Capital profits reserve
Options reserve
Performance rights reserve
Accumulated losses
Profit or loss for the year
Total comprehensive income
2022
$
2021
$
231,179,318
65,748,642
4,997
4,997
8,068,140
2,625,776
970,130
345,000
(22,753,377)
(217,469,208)
217,469,208)
(54,683,987)
(8,712,948)
(7,056,369)
(8,712,948)
(7,056,369)
(b) 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 2022 and 30 June 2021.
(c) Contingent liabilities
The parent entity had no contingent liabilities as at 30 June 2022 and 30 June 2021.
(d) Capital commitments - Property, plant and equipment
The parent entity had no capital commitments for property, plant and equipment as at 30 June 2022 and 30 June 2021.
(e) 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.
86
LAKE RESOURCES ANNUAL REPORT 2022
Notes to the Consolidated Financial Statements
For the year ended 30 June 2022
15 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:
Principal place of business/ Country
of incorporation
Ownership interest held by
the group
Name of entity
Lake Mining Pakistan (Pvt) Limited *
LithNRG Pty Ltd
Minerales Australes SA **
Morena del Valle Minerals SA **
Lake Resources CRN Pty Ltd ***
Kachi Lithium Pty Ltd**
Petra Energy SA****
Pakistan
Australia
Argentina
Argentina
Australia
Australia
Argentina
2022
%
2021
%
100
100
100
100
100
100
-
100
100
100
100
100
100
100
*
**
***
****
The subsidiary was incorporated on 4 December 2014. The subsidiary has share capital consisting solely of ordinary
shares which are held directly by the Lith NRG Pty Ltd. The proportion of ownership interests held equals the voting rights
held by Lith NRG Pty Ltd. The subsidiary’s principal place of business is also its country of incorporation. The project is
inactive and the company will be deregistered in the future.
Interest is held through LithNRG Pty Ltd. LithNRG’ s interest in Morena del Valles will be transferred to KLPL following its
incorporation (refer below).
Entity created solely as the holder of the Consolidated entity issued Convertible Notes in December 2018, and since then,
all Notes have been repaid. The entity is dormant at present.
No interest held in this entity by the Consolidated entity in 2022. Ownership interest in 2022 is restated to nil, formerly
reported as 100% ownership interest held by the group as in 2021 it was assessed that the Parent entity has power and
ability to direct the relevant activities over Petra Energy SA, but in 2022 the power and ability to direct relevant activities
ceased.
Kachi Lithium Pty Ltd (KLPL) was incorporated on 26 August 2021 as a wholly owned subsidiary of LithNRG Pty Ltd. KLPL will be
the vehicle through which the Kachi Project will operate and will be the owner of the shares of Morena del Valle Minerals. Under
the agreement with Lilac Solutions Inc, that company has the ability to earn up to 25% of the ownership of KLPL.
16 Events after the reporting period
On 14th July 2022, after a brief trading halt, the Company responded to an inaccurate report issued by J Capital (a short-seller)
attacking Lake Resources over its’ new direct lithium extraction (DLE) technology, share trade disclosures, options to brokers,
and Memoranda of Understandings signed to date.
Lake reassured investors that the Lilac Solutions proprietary ion exchange technology to be used for DLE at the Kachi brine
project in Argentina, will be practical, efficient, and environmentally sustainable.
The Company also advised that non-disclosure of share trades by the former Managing Director (Stephen Promnitz),
were unapproved due to failure by the Officer to notify the Company Secretary. Options issues to brokers as part of the fee
arrangements were common practice in the industry, and that Memoranda of Understanding (MOU’s), while largely non-
binding, had been entered into with globally recognised companies for the long-term supply of a material critical to their
supply chains.
8787
Notes to the Consolidated Financial Statements
For the year ended 30 June 2022
16 Events after the reporting period (continued)
Following the resignation of the former Managing Director on 17 June 2022, the Company announced on 16th August 2022 a
notification of cessation of securities for 2,500,000 performance rights, due to conditions not being satisfied.
On 19th August 2022 the Company appointed senior mining executive Mr Sean Miller as Corporate Development Officer to fast-
track exploration across three Jujuy brine projects in Argentina - Cauchari, Olaroz and Paso projects.
At the same time, it was also confirmed that the new CEO appointment process was nearing completion, and that Lake
Resources was finalising the selection of new board members as part of the transition to a US corporate office to better align
production and key customers and markets.
A six-month global search for a new CEO/MD culminated with an ASX announcement dated 7th September that Mr David
Dickson would assume the role of CEO and Managing Director. Mr Dickson is an industry leader with over 30 years’ experience
in engineering, construction, and EPC cost management, across the energy sector.
He has a proven track record in successfully delivering multibillion dollar resource projects.
On 14 September 2022 Lake Resources NL provided an update on the Kachi pilot plant in respect of progress under its Pilot
Project Agreement (dated 21 September 2021) with technology partner, Lilac Solutions Inc (Lilac). Whilst work has continued
on the Kachi project, a dispute has arisen between Lake and Lilac as to the date by which key performance milestones need
to be achieved, with Lake considering milestones to be achieved by 30 September 2022 and Lilac considering it has until 30
November 2022 to do so. To resolve the dispute, Lake has exercised its rights to have the dispute resolved either by agreement
of both Lake and Lilac or by arbitration.
Pursuant to ASX announcement on 19 September, Lake confirmed that construction of the facility to house the Lilac
demonstration plant was complete. Dry commissioning of the demonstration plant also commenced on Wednesday
September 14, with expected wet commissioning of the plant to begin on September 22. Once wet commissioning is complete,
Lilac expects to begin onsite processing of Kachi brines in the first week of October 2022. Whilst the test program is based on
operating the demonstration plant for 1000 hours it is anticipated that the first 2000 litres of lithium concentrate produced
from the demonstration plant will be sent for conversion into Lithium Carbonate once delivered. Lake proposes that this final
Lithium product will then be qualified by a tier 1 battery maker to validate product specifications. Lake confirmed offtake
discussions continue to advance and new appointments to the Lake board are in final stages of consideration.
No other matter or circumstance has arisen since 30 June 2022 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.
88
LAKE RESOURCES ANNUAL REPORT 2022 Notes to the Consolidated Financial Statements
For the year ended 30 June 2022
17 Cash flow information
(a) Reconciliation of loss after income tax to net cash used in operating activities (continued)
Loss for the year
Adjustments for:
Depreciation and amortisation
Exploration expenditure impaired
Share-based payments (non cash)
Financial asset impaired
Unrealized gain or loss
Realized gain or loss
Note
5
2022
$
2021
$
(5,683,095)
(2,894,223)
51,297
-
2,425,591
337
301,700
108,931
-
(146,352)
(2,427,076)
16,433
-
-
Change in operating assets and liabilities, net of effects from purchase of controlled entity and sale of engineering division:
(Increase)/decrease in trade and other receivables
Increase/(decrease) in provisions
Increase in other current assets
Increase/(decrease) in trade and other payables
Net cash outflow from operating activities
(5,456,615)
(91,732)
26,762
100,779
(119,271)
(166,996)
2,605,372
236,079
(8,679,096)
(2,432,983)
(b) Non-cash investing and financing activities
(i) During the year the Group entered into the following non-cash investing and financing transactions
Share issue costs - to brokers
Deduct shares in lieu of payments:
Equity settled loan repayments (Note 7(e))
Proceeds from issue of shares, net of transaction costs
2022
$
2021
$
(9,711,684)
(2,625,776)
-
(32,500)
(9,711,684)
(2,658,276)
8989
Notes to the Consolidated Financial Statements
For the year ended 30 June 2022
18 Cash flow information
(a) Reconciliation of loss after income tax to net cash used in operating activities (continued)
Loss for the year
Adjustments for:
Depreciation and amortisation
Exploration expenditure impaired
Share-based payments (non cash)
Financial asset impaired
Unrealized gain or loss
Realized gain or loss
Change in operating assets and liabilities, net of effects from purchase
of controlled entity and sale of engineering division:
(Increase)/decrease in trade and other receivables
Increase/(decrease) in provisions
Increase in other current assets
Increase/(decrease) in trade and other payables
Net cash outflow from operating activities
(b) Non-cash investing and financing activities
(i) During the year the Group entered into the following non-cash investing
and financing transactions
Share issue costs - to brokers
Deduct shares in lieu of payments:
Equity settled loan repayments (Note 7(e))
Proceeds from issue of shares, net of transaction costs
Note
5
2022
$
2021
$
(5,683,095)
(2,894,223)
51,297
-
2,425,591
337
301,700
108,931
-
(146,352)
(2,427,076)
16,433
(5,456,615)
(91,732)
(119,271)
2,605,372
-
-
26,762
100,779
(166,996)
236,079
(8,679,096)
(2,432,983)
2022
$
2021
$
(9,711,684)
(2,625,776)
-
(32,500)
(9,711,684)
(2,658,276)
90
LAKE RESOURCES ANNUAL REPORT 2022
Notes to the Consolidated Financial Statements
For the year ended 30 June 2022
17 Cash flow information (continued)
(b) Non-cash investing and financing activities (continued)
(ii) Reconciliation of net debt
Opening balance
Loan service fee, interest, discount
Loan drawn
Repayments by share issue/other
Repayments - cash
Lease liability on inception
Interest charge
Closing balance
18 Earnings per share
Loss after income tax attributable to the owners of Lake Resources NL
2022
$
2021
$
-
-
-
-
-
27,500
200,000
(60,000)
(19,441)
(167,500)
289,208
8,090
277,857
-
-
-
2022
$
2021
$
(5,683,095)
(2,894,223)
Number
Number
Weighted average number of ordinary shares used in calculating basic earnings per share
1,120,917,048
821,977,574
Weighted average number of ordinary shares used in calculating diluted earnings per share
1,120,917,048
821,977,574
Basic loss per share
Diluted loss per share
Cents
Cents
(0.51)
(0.51)
(0.35)
(0.35)
Options over ordinary shares are considered potential ordinary shares. For the year ended 30 June 2022, their conversion
to ordinary shares would have had the effect of reducing the loss per share. Accordingly, the options were not included in
the determination of diluted earnings per share for the period. Details relating to options are set out at notes 9(b) and 20.
Subsequent to the end of the financial year, the Consolidated entity issued 263,803 shares which would not have significantly
changed the number of ordinary shares or potential ordinary shares outstanding at the end of the year if those transactions
had occurred before the end of the year. Earnings per share for the year are not adjusted for transactions occurring after the
end of the year as the transactions do not affect the amount of capital used to produce profit or loss for the year. Details of the
share issues conducted after the reporting period are included in Note 17 above.
9191
Notes to the Consolidated Financial Statements
For the year ended 30 June 2022
19 Share-based payments
During the financial year the Company equity-settled share-based payment transactions for the acquisition of goods and
services, from personnel and external suppliers were charged as follows:
Expensed to profit or loss
Capitalised as equity transaction cost
Total
Adjusted to equity
Share capital
Option Reserve
Total
(a) Expensed to Profit or Loss
Note
20(a)
20(b)
2022
$
2021
$
2,425,591
108,931
9,711,684
2,625,776
12,137,275
2,734,707
2,425,591
108,931
9,711,684
2,625,776
12,137,275
2,734,707
During the year equity-settled share-based payment transactions for the payment for fees and services, expensed through
profit or loss, occurred as follows:
2022
Options issued as payment for professional
services - Mr. P Neilsen (CFO)
Options issued as payment for professional
services - Mr. G Parimoo (COO)
Options issued as payment for professional
services - Mr. S Robertson (SRL Consulting)
Performance Shares issued as payment for
professional services - Mr. N Lindsy
Vesting of performance rights issued to
directors
Date
Number Issued
13-July-21
2,000,000
14-Oct-2021
2,000,000
19-Jan-22
1,000,000
24-Feb-22
461,715
30-June-22
7,500,000
Total
12,961,715
Fair value per
option/right
$
Expensed
$
0.23
0.38
0.58
0.90
0.57
461,248
760,610
578,604
251,379
373,750
2,425,591
92
LAKE RESOURCES ANNUAL REPORT 2022 Notes to the Consolidated Financial Statements
For the year ended 30 June 2022
19 Share-based payments (continued)
(a) Expensed to Profit or Loss (continued)
2021
Date
Number issued
Shares issued as payment for loan service fees - Mr. S Promnitz
31-Aug-20
916,667
Shares issued as payment for professional services -
Acuity Capital Holdings
Shares issued as payment for professional services -
Supplier JCU
Shares issued as payment for professional services -
Mr. S Francis
Total
(i) Key Management Personnel and Suppliers options
1-Sep-20
381,033
1-Sep-20
333,334
20-Jan-21
710,900
2,341,934
Value per
share
$
Expensed
$
0.03
0.03
0.03
0.08
27,500
11,431
10,000
60,000
108,931
During the financial year, the following 4,000,000 options granted to the key management personnel and suppliers below have
vested and are not exercised at year end are as follows:
Name
Number
of Options
granted
Grant date
Expiry
date
Exercise
price
Fair value
at grant
date
Expensed
2022
P. Neilsen
G. Parimoo
S. Robertson
Total
2,000,000
2,000,000
12-Jul-21
12-Jul-24
14-Oct-21
25-Oct-24
1,000,000
19-Jan-22
19-Jan-25
$0.55
$0.57
$1.48
$0.2310
461,248
$0.381
760,609
$0.5790
578,604
4,000,000
1,800,461
Grant date
Vesting date
Share Price at grant date
Exercise (Strike) Price
Time to Maturity (in years)
Annual Risk-Free Rate
Annualised Volatility
P. Neilsen
G. Parimoo
S. Robertson
12-Jul-21
12-Jul-21
$0.39
$0.55
$3.00
0.16%
14-Oct-21
25-Oct-21
$0.57
$0.57
$3.00
0.66%
19-Jan-22
19-Jan-21
$0.985
$1.48
$3.00
1.23%
$110.00
111.948%
108.767%
The options did vest immediately, but was not exercised at year end. For the year ended 30 June 2022, $1,800,461 (2021: $nil)
was recognised as an expense in the profit or loss.
(ii) Performance rights issued to Directors
On 15 August 2019 following the approval from the shareholders at the Company’s EGM, the Consolidated entity granted
15,000,000 performance rights to the then Directors as follows:
9393
Notes to the Consolidated Financial Statements
For the year ended 30 June 2022
19 Share-based payments (continued)
(a) Expensed to Profit or Loss (continued)
(ii) Performance rights issued to Directors (continued)
Name
Number of
Rights granted
Grant date
Expiry date
Converted
to Shares/
Expired
Fair value
at grant
date
Expensed
2022
S. Crow
S. Promnitz
N. Lindsay
Total
5,000,000
15-Aug-2019
15-Aug-24
-
$0.0575
5,000,000
15-Aug-2019
15-Aug-24
(5,000,000)
$0.0575
5,000,000
15-Aug-2019
15-Aug-24
(2,500,000
$0.0575
15,000,000
273,125
(7,188)
107,813
373,750
Directors exercised judgement in assessing that the likelihood of the remaining hurdles for the vesting of the performance
rights has materially changed since the prior year. Accordingly for the year ended 30 June 2022, $373,750 (2021: $nil) was
expensed in the profit or loss. The expense calculation recognises the probability of the performance hurdles being achieved.
(i) Performance shares issued to Directors and other Key Management Personnel
Name
P. Neilsen
P. Neilsen
P. Neilsen
P. Neilsen
N. Lindsay
N. Lindsay
N. Lindsay
N. Lindsay
Total
Number of
Rights granted
Grant date
Expiry date
Converted
to Shares/
Expired
Fair value
at grant
date
Expensed
2022
123,809
22-Feb-2022
12-Dec-22
139,285
22-Feb-2022
12-Mar-23
167,142
22-Feb-2022
12-Sep-23
250,714
22-Feb-2022
12-Sep-24
92,343
22-Feb-2022
147,749
22-Feb-2022
147,749
22-Feb-2022
73,874
22-Feb-2022
1,142,665
1-Jun-22
1-Jun-22
1-Mar-23
1-Mar-24
$0.9000
$0.9000
$0.9000
$0.9000
$0.9000
$0.9000
$0.9000
$0.9000
-
35,911
143,645
-
71,823
251,379
Directors exercised judgement in assessing the number of performance shares that are expected to vest. The vesting
conditions and Directors assessment at 30 June 2022 are summarised below:
94
LAKE RESOURCES ANNUAL REPORT 2022 Notes to the Consolidated Financial Statements
For the year ended 30 June 2022
19 Share-based payments (continued)
(a) Expensed to Profit or Loss (continued)
(iii) Performance rights issued to Directors (continued)
Number
of Rights
granted
Name
P. Neilsen
123,809
Performance measure
Measurement
date
Directors judgement at
30 June 2022
Delivering and operating a comprehensive
reporting package for the debt financiers and
potential JV partners post close of the Kachi
Project finance and closing of debt financing
for the Company’s Kachi Project (60%)
12-Oct-22
In the Directors judgement, this
milestone will not be met by 12
October 2022. Nil expense recorded.
139,285
Delivering and operating a comprehensive
reporting package for the debt financiers and
potential JV partners post close of the Kachi
Project finance
12-Jan-23
In the Directors judgement, this
milestone will not be met by 12
January 2023. Nil expense recorded.
167,142
Maintain and deliver accurate reporting across
all facets of the business incorporating cash
flows, pre-production and budgeting.
12-Jul-23
In the Directors judgement, this
milestone will not be met by 12 July
2023. Nil expense recorded.
Preparation of financial documents to the
satisfaction of financiers, project banking
syndicates and export credit agencies
Implementation and maintenance of
acceptable budgetary and cash flow measures
across Australia and Argentina
250,714
Delivery of the Kachi Project into production
with appropriate reporting mechanisms in
place
12-Jul-24
In the Directors judgement, this
milestone will not be met by 12 July
2024. Nil expense recorded.
N. Lindsay
92,343
147,749
147,749
73,874
Commencement of exploration and testing of
brines from at least one of the Company’s other
projects
The Company putting a project team in place
to build the Project DFS and building the
demonstration plant on site
1-Apr-22
This tranche have vested. $35,911
expense recognised.
1-Apr-22
This tranche have vested. $143,645
expense recognised.
The Company closing the debt and equity
financing for the Company’s Kachi Project on
terms satisfactory to the Company
1-Jan-23
In the Directors judgement, this
milestone will not be met by 1
January 2023. Nil expense recorded.
The Company receiving approval for the
financing of an expansion case being up to
50,000 tonnes per annum lithium carbonate
equivalent total production at the Kachi Project
1-Jan-24
In the Directors judgement, financing
approval is expected before 1 January
2024 therefore expected that all
73,874 performance shares will vest.
$71,823 expense recognised.
9595
Notes to the Consolidated Financial Statements
For the year ended 30 June 2022
19 Share-based payments (continued)
(a) Expensed to Profit or Loss (continued)
(iii) Performance shares issued to Directors and other Key Management Personnel (continued)
Accordingly for the year ended 30 June 2022, $251,379 (2021: $nil) was expensed in the profit or loss.
(b) Capitalised as equity transaction cost
During the year 72,177,244 options were issued for services provided in raising capital for the Company. The expenses were charged
to capital raising costs and were determined using the Black Scholes methodology utilising the following assumptions:
Grant date
Vesting date
Share Price at grant date
Exercise (Strike) Price
Time to Maturity (in years)
Annual Risk-Free Rate
Annualised Volatility
Grant date
Vesting Date
Share Price at grant date
Exercise (Strike) Price
Time to Maturity (in years)
Annual Risk-Free Rate
Annualised Volatility
Lodge Partners
Tranche 1
Tranche 2
Tranche 3
Tranche 4
30-Aug-21
30-Aug-21
$0.63
$0.75
$0.79
0.01%
127.61%
16-July-21
14-Mar-23
16-July-21
28-Sep-23
$0.385
$0.55
3
0.15%
$0.385
$0.55
3
0.15%
16-July-21
21-Jan-24
$0.385
$0.55
3
0.15%
16-July-21
22-Jun-24
$0.385
$0.55
3
0.15%
109.817%
109.817%
109.817%
109.817%
SD Capital / GKB
Corporate Connect
Simon Francis
SD Capital
GKB Ventures
01-Aug-21
01-Aug-21
$0.465
$0.49
3
0.02%
110.352%
16-Mar-22
16-Mar-22
19-Jan-22
26-April-22
26-April-22
16-Mar-22
26-April-22
26-April-22
$1.34
$1.00
1
1.77%
$1.34
$0.75
1
1.77%
$2.02
$1.42
3
2.65%
$2.02
$1.42
3
2.65%
109.627%
109.627%
109.627%
109.627%
Movement in options granted during the year for which expenses were charged to capital raising costs.
Grant date
FV price at
grant date
Expiry date
Exercise
price
Granted
Expired
Unexercised
Exercised
Balance at the
end of the year
Charged to
Equity
2022
28-Jul-2
28-Jul-2
28-Jul-2
28-Jul-2
1-Aug-2
30-Aug-
16-Mar-
16-Mar-
26-Apr-
26-Apr-
Total
96
1 $0.24
31-Dec-24
$0.55
10,000,000
1 $0.24
31-Dec-24
$0.55
10,000,000
1 $0.24
31-Dec-24
$0.55
10,000,000
1 $0.24
31-Dec-24
$0.55
5,000,000
(10,000,000)
(10,000,000)
(10,000,000)
(5,000,000)
1,375,472
1,045,190
925,926
395,552
1 $0.30
1-Aug-24
$0.50
5,780,000
(17,000)
5,763,000
1,752,203
21 $0.24
15-Jun-22
$0.75
4,000,000
(4,000,000)
22 $0.67
1-Mar-23
22 $0.71
15-Oct-22
22 $1.47
26-Apr-25
22 $1.47
26-Apr-25
$1.00
$0.75
$1.42
$1.42
100,000
225,000
1,036,122
1,036,122
100,000
225,000
945,592
66,700
158,850
1,036,122
1,523,099
1,036,122
1,523,099
92,857,244
-
(10,119,000)
42,738,244
9,711,683
LAKE RESOURCES ANNUAL REPORT 2022 Notes to the Consolidated Financial Statements
For the year ended 30 June 2022
19 Share-based payments (continued)
(b) Movements in Options, Performance Rights and Performance Shares
Set out below are summaries of options and performance rights granted under share-based payments arrangement:
Options
Grant
date
Expiry
date
Exercise
price
Balance at
the start of
the year
Granted
Expired
Unexercised
Exercised
Balance at
the end of
the year
Vested and
exercisable
at the end
of the year
2022
16-Sep-19
31-Jul-2021
09-Mar-21
09-Mar-23
27-Jan-21
24-Apr-21
28-Jul-21
28-Jul-21
28-Jul-21
28-Jul-21
13-Jul-21
1-Aug-21
30-Aug-21
19-Aug-21
19-Jan-22
14-Oct-21
16-Mar-22
16-Mar-22
26-Apr-22
26-Apr-22
Total
09-Mar-23
24-May-23
31-Dec-24
31-Dec-24
31-Dec-24
31-Dec-24
12-Jul-24
01-Aug-24
15-Jun-22
15-Jun-21
19-Jan-25
25-Oct-24
01-Mar-23
15-Oct-22
26-Apr-25
26-Apr-25
$0.09
$0.30
$0.30
$0.30
$0.55
$0.55
$0.55
$0.55
$0.55
$0.50
$0.75
$0.10
$1.48
$0.57
$1.00
$0.75
$1.42
$1.42
15,000,000
11,250,000
1,000,000
1,500,000
10,000,000
10,000,000
10,000,000
5,000,000
2,000,000
5,780,000
4,000,000
(1,000,000)
(14,000,000)
(11,250,000)
(1,000,000)
(1,500,000)
(10,000,000)
(10,000,000)
(10,000,000)
(5,000,000)
-
-
-
-
-
-
-
-
2,000,000
2,000,000
(17,000)
5,763,000
5,763,000
(4,000,000)
1,241,748
(1,166,748)
(75,000)
1,000,000
2,000,000
100,000
225,000
1,036,122
1,036,122
-
-
1,000,000
1,000,000
2,000,000
2,000,000
100,000
225,000
1,036,122
1,036,122
100,000
225,000
1,036,122
1,036,122
44,991,748
60,177,244
(2,166,748)
(88,842,000)
13,160,244
13,160,244
Grant
date
Expiry
date
Exercise
price
2021
30-Nov-17
31-Dec-20
8-Mar-19
28-Feb-22
16-Sep-19
31-Jul-21
28-Oct-19
28-Oct-22
09-Mar-21
09-Mar-23
27-Jan-21
09-Mar-23
24-Apr-21
24-May-23
$0.28
$0.08
$0.09
$0.05
$0.30
$0.30
$0.30
Balance
at the
start of
the year
9,500,000
5,555,000
15,000,000
18,300,000
Granted
Expired
Unexercised
Exercised
Balance at
the end of
the year
Vested and
exercisable
at the end
of the year
(9,500,000)
(5,555,000)
-
-
11,250,000
1,000,000
1,500,000
15,000,000
15,000,000
(18,300,000)
-
11,250,000
11,250,000
1,000,000
1,000,000
1,500,000
1,500,000
Total
48,355,000 13,750,000
(9,500,000)
(23,855,000)
28,750,000
28,750,000
9797
Notes to the Consolidated Financial Statements
For the year ended 30 June 2022
19 Share-based payments (continued)
(c) Movements in Options, Performance Rights and Performance Shares (continued)
Performance Rights
Balance
at the
start of
the year
Converted
to Shares/
Expired
Balance at
the end of
the year
Granted
Vested
during
year
but not
converted
Expired
during
the year
10,000,000
(2,500,000)
7,500,000
7,500,000
2,500,000
15,000,000
-
(5,000,000)
10,000,000
-
Grant date
Expiry date
2022
15-Aug-2019
2021
15-Aug-2019
Performance Shares
12-Sep-24
15-Aug-24
Grant date
Expiry date
Balance at the
start of the
year
Granted
Converted
to Shares/
Expired
Balance at
the end of
the year
Vested during
year but not
converted
2022
24-Feb-22
24-Feb-22
24-Feb-22
24-Feb-22
24-Feb-22
24-Feb-22
24-Feb-22
24-Feb-22
2021
12-Dec-22
12-Mar-23
12-Sep-23
12-Sep-24
1-Jun-22
1-Jun-22
1-Mar-23
1-Mar-23
-
-
-
123,809
139,285
167,142
250,714
92,343
147,749
147,749
73,874
1,142,665
-
-
-
(c) Options as Share Based Payments - Numbers and Weighted Average Prices
Outstanding at end of the period
Granted during the period
Forfeited during the period
Expired during the period
Exercised during the period
Outstanding at end of the period
Exercisable at the end of the period
98
123,809
139,285
167,142
250,714
92,343
147,749
147,749
73,874
92,343
147,749
1,142,665
240,092
-
-
Number
Weighted Ave
Exercise Price
92,491,748
52,177,244
(2,166,748)
(122,716,040)
19,786,204
19,786,204
$0.30
$0.82
$0.10
$0.45
$0.97
$0.97
LAKE RESOURCES ANNUAL REPORT 2022 Notes to the Consolidated Financial Statements
For the year ended 30 June 2022
19 Share-based payments (continued)
(c) Movements in Options, Performance Rights and Performance Shares (continued)
20 Commitments
(a) Definitive Feasibility Study and Development Cost
On 8 January 2021, the Consolidated entity announced that it had approved the preparation of a Definitive Feasibility Study
(DFS) for the Kachi project. Work on the DFS is expected to be completed within 12 months of the date of this report with
a further approximately USD34.5 million to be spent in that period. The company estimates the total development cost of
the project at USD1 billion based on a plant capable of producing 50,000 tonnes of Lithium Carbonate per annum with the
development cost to be incurred over a 3 year period.
(b) Tenement Expenditure Commitments
The Consolidated entity has no annual spending commitments required by Government or other bodies in order to maintain
the standing of the tenements. Over the next 12 months the Consolidated entity expects to spend approximately USD112 million
on exploration work at its Argentinian tenements.
21 Contingencies
The Consolidated entity had no contingent liabilities at 30 June 2022 (2021: nil).
9999
Directors’ Declaration
30 June 2022
In the Directors’ opinion:
(a)
the consolidated financial statements and notes set out on pages 42 to 98 are in accordance with the
Corporations Act 2001, including:
(i) complying with Accounting Standards, the Corporations Regulations 2001 and other mandatory professional
reporting requirements, and
(ii) giving a true and fair view of the consolidated entity’s financial position as at 30 June 2022 and of its performance
for the financial year ended on that date, and
(b)
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 by the chief executive officer CEO and chief financial officer CFO required by
section 295A of the Corporations Act 2001.
This declaration is made in accordance with a resolution of the Directors.
S. Crow
Executive Chairman
30 September 2022
100
LAKE RESOURCES ANNUAL REPORT 2022 Tel: +61 7 3237 5999
Fax: +61 7 3221 9227
www.bdo.com.au
Level 10, 12 Creek Street
Brisbane QLD 4000
GPO Box 457 Brisbane QLD 4001
Australia
INDEPENDENT AUDITOR'S REPORT
To the members of Lake Resources NL
Report on the Audit of the Financial Report
Opinion
We have audited the financial report of Lake Resources NL (the Company) and its subsidiaries (the
Group), which comprises the consolidated statement of financial position as at 30 June 2022, the
consolidated statement of profit or loss and other comprehensive income, the consolidated statement
of changes in equity and the consolidated statement of cash flows for the year then ended, and notes
to the financial report, including a summary of significant accounting policies and the directors’
declaration.
In our opinion the accompanying financial report of the Group, is in accordance with the Corporations
Act 2001, including:
(i)
Giving a true and fair view of the Group’s financial position as at 30 June 2022 and of its
financial performance for the year ended on that date; and
(ii)
Complying with Australian Accounting Standards and the Corporations Regulations 2001.
Basis for opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under
those standards are further described in the Auditor’s responsibilities for the audit of the Financial
Report section of our report. We are independent of the Group in accordance with the Corporations
Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board’s
APES 110 Code of Ethics for Professional Accountants (including Independence Standards) (the Code)
that are relevant to our audit of the financial report in Australia. We have also fulfilled our other
ethical responsibilities in accordance with the Code.
We confirm that the independence declaration required by the Corporations Act 2001, which has been
given to the directors of the Company, would be in the same terms if given to the directors as at the
time of this auditor’s report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our opinion.
Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most significance in
our audit of the financial report of the current period. These matters were addressed in the context of
our audit of the financial report as a whole, and in forming our opinion thereon, and we do not provide
a separate opinion on these matters.
BDO Audit Pty Ltd ABN 33 134 022 870 is a member of a national association of independent entities which are all members of BDO
Australia Ltd ABN 77 050 110 275, an Australian company limited by guarantee. BDO Audit Pty Ltd and BDO Australia Ltd are members of
BDO International Ltd, a UK company limited by guarantee, and form part of the international BDO network of independent member
firms. Liability limited by a scheme approved under Professional Standards Legislation.
95
101101
Carrying value of exploration and evaluation assets
Key audit matter
How the matter was addressed in our audit
Refer to note 8 in the annual report.
The Group carries exploration and evaluation
assets as at 30 June 2022 in accordance with
the Group’s accounting policy for exploration
and evaluation assets.
The recoverability of exploration and
evaluation assets is a key audit matter due to
the significance of the total balance and the
level of procedures undertaken to evaluate
management’s application of the
requirements of AASB 6 Exploration for and
Evaluation of Mineral Resources (‘AASB 6’) in
light of any indicators of impairment that may
be present.
Our procedures included, but were not limited to
the following:
• Obtaining an understanding of the current
status of the tenements/projects including
key activities undertaken during the period;
• Making enquiries of management with respect
to whether any impairment indicators in
accordance with AASB 6 have been identified
across the Group’s exploration project;
• Assessing management’s determination that
exploration activities have not yet progressed
to the point where the existence or otherwise
of an economically recoverable mineral
resource may be determined through
discussions with management and review of
ASX announcements and other relevant
documentation;
• Reviewing capitalised exploration expenditure
during the period to ensure it meets the
recognition criteria under AASB 6; and
•
Ensuring that the group has the rights to
tenure and maintains the tenements in good
standing.
Other information
The directors are responsible for the other information. The other information comprises the
information in the Group’s annual report for the year ended 30 June 2022, but does not include the
financial report and the auditor’s report thereon.
Our opinion on the financial report does not cover the other information and we do not express any
form of assurance conclusion thereon.
In connection with our audit of the financial report, our responsibility is to read the other information
and, in doing so, consider whether the other information is materially inconsistent with the financial
report or our knowledge obtained in the audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this
other information, we are required to report that fact. We have nothing to report in this regard.
BDO Audit Pty Ltd ABN 33 134 022 870 is a member of a national association of independent entities which are all members of BDO
Australia Ltd ABN 77 050 110 275, an Australian company limited by guarantee. BDO Audit Pty Ltd and BDO Australia Ltd are members of
BDO International Ltd, a UK company limited by guarantee, and form part of the international BDO network of independent member
firms. Liability limited by a scheme approved under Professional Standards Legislation.
96
102
LAKE RESOURCES ANNUAL REPORT 2022
Responsibilities of the directors for the Financial Report
The directors of the Company are responsible for the preparation of the financial report that gives a
true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001
and for such internal control as the directors determine is necessary to enable the preparation of the
financial report that gives a true and fair view and is free from material misstatement, whether due to
fraud or error.
In preparing the financial report, the directors are responsible for assessing the ability of the group to
continue as a going concern, disclosing, as applicable, matters related to going concern and using the
going concern basis of accounting unless the directors either intend to liquidate the Group or to cease
operations, or has no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the Financial Report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free
from material misstatement, whether due to fraud or error, and to issue an auditor’s report that
includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an
audit conducted in accordance with the Australian Auditing Standards will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are considered material
if, individually or in the aggregate, they could reasonably be expected to influence the economic
decisions of users taken on the basis of this financial report.
A further description of our responsibilities for the audit of the financial report is located at the
Auditing and Assurance Standards Board website (http://www.auasb.gov.au/Home.aspx) at:
https://www.auasb.gov.au/admin/file/content102/c3/ar1_2020.pdf
This description forms part of our auditor’s report.
Report on the Remuneration Report
Opinion on the Remuneration Report
We have audited the Remuneration Report included in paragraphs a to b or pages 14 to 35 of the
directors’ report for the year ended 30 June 2022.
In our opinion, the Remuneration Report of Lake Resources NL, for the year ended 30 June 2022,
complies with section 300A of the Corporations Act 2001.
Responsibilities
The directors of the Company are responsible for the preparation and presentation of the
Remuneration Report in accordance with section 300A of the Corporations Act 2001. Our responsibility
is to express an opinion on the Remuneration Report, based on our audit conducted in accordance with
Australian Auditing Standards.
BDO Audit Pty Ltd
R M Swaby
Director
Brisbane, 30 September 2022
BDO Audit Pty Ltd ABN 33 134 022 870 is a member of a national association of independent entities which are all members of BDO
Australia Ltd ABN 77 050 110 275, an Australian company limited by guarantee. BDO Audit Pty Ltd and BDO Australia Ltd are members of
BDO International Ltd, a UK company limited by guarantee, and form part of the international BDO network of independent member
firms. Liability limited by a scheme approved under Professional Standards Legislation.
97
103103
2022 Corporate Governance Statement
This corporate governance statement sets out the corporate governance policies and practices in place throughout the
reporting period and/or which are current in accordance with 4th edition of the ASX Principles of Good Corporate Governance
and Best Practice Recommendations.
This corporate governance statement is current as at 14 October 2022 and has been approved by the Board. It is available on
the Company’s website at www.lakeresources.com.au.
ASX Principles and Recommendations
Comply
(Yes/No)
Explanation
1. Lay solid foundations for management and oversight
1.1.
A listed entity should have and disclose a board
charter setting out:
Yes
(a)
the respective roles and responsibilities of
its board and management; and
(b)
those matters expressly reserved
to the board and those delegated to
management.
The Company has adopted a Board Charter which sets out the
roles and responsibilities of the Board, senior management
and the Company Secretary. The Board Charter also sets out the
matters expressly reserved to the board and those delegated to
management.
The Board is responsible for the performance and overall corporate
governance of the Company including the strategic direction,
selection of executive directors, establishing goals for management
and monitoring the achievement of those goals and approval of
budgets.
Day to day management of the Company’s affairs and
implementation of the corporate strategy are delegated by the
Board to the managing director and senior management.
A copy of the Board Charter is available on the Company’s website at
http://www.lakeresources.com.au.
1.2.
A listed entity should:
Yes
(a)
(a)
undertake appropriate checks before
appointing a person, or putting forward to
security holders a candidate for election
as a director; and
provide security holders with all material
information in its possession relevant to
a decision on whether or not to elect or re-
elect a director.
Appropriate background checks are carried out prior to the
appointment of new directors in respect of checking qualifications
and experience, and screening for bankruptcy or criminal
convictions.
The Notice of Meeting sent to all shareholders prior for the AGM
includes all material information obtained by the Company to
enable shareholders to make an informed decision in respect of the
re-election of directors at the AGM.
1.3.
A listed entity should have a written agreement
with each director and senior executive setting
out the terms of their appointment.
No
During the reporting period the Company did not have a written
agreement with Chairman Mr Stuart Crow.
The Company currently has written agreements in place with all
directors setting out the terms of their appointment.
1.4.
The company secretary of a listed entity should
be accountable directly to the board, through
the chair, on all matters to do with the proper
functioning of the board.
Yes
The Board Charter provides for the Company Secretary to be
accountable directly to the Board through the Chair.
104
LAKE RESOURCES ANNUAL REPORT 2022
The Company has adopted a Diversity Policy which is available
in the corporate governance section of the Company’s website at
http://www.lakeresources.com.au.
The Board has not yet set measurable objectives for the Diversity
Policy however as it entered the S&P/ASX 300 during the year ended
30 June 2022 it will set measurable objectives for achieving gender
diversity in the composition of its board during the current period.
The Group currently has 1 female board member (2021:1), no female
senior executives (2021: Nil). The Company currently has 18 female
employees representing 20% of the total number of employees
including Directors.
1.5.
A listed entity should:
No
(a)
Have and disclose a diversity policy;
(b)
through its board or a committee of the board
set measurable objectives for achieving gender
diversity in the composition of its board, senior
executive and workforce generally; and
(c)
disclose in relation to each reporting period:
(1)
the measurable objectives set for that
period to achieve gender diversity
(2)
the entity’s progress towards achieving
those objectives; and
(3)
either:
(A)
(B)
the respective proportions of men
and women on the board, in senior
executive positions and across the
whole workforce (including how the
entity has defined “senior executive”
for these purposes); or
if the entity is a “relevant employer”
under the Workplace Gender Equality
Act, the entity’s most recent “Gender
Equity Indicators”, as defined in and
published under that Act.
If the entity was in the S&P/ASX 300 index at
the commencement of the reporting period, the
measurable objective for achieving gender diversity
in the composition of its board should be to have not
less than 30% of its directors of each gender within a
specified period.
1.6.
A listed entity should:
No
(a) have and disclose a process for periodically
evaluating the performance of the board, its
committees and individual directors; and
To date the Company has not established or disclosed a formal
process for evaluation of the Board, Board Committees or individual
directors.
Due to the recent restructuring of the Board the Company will
introduce a formal process for its evaluation together with its Board
Committees and individual directors.
(b) disclose, in relation to each reporting
No evaluations were undertaken during the 2022 financial year.
period, whether a performance evaluation
was undertaken in the reporting period in
accordance with that process.
1.7.
A listed entity should:
No
(a) have and disclose a process for evaluating
the performance of its senior executives at
least once every reporting period; and
To date the Company has not established or disclosed a formal
process for evaluation of senior executives. As the size of the
executive team has grown during the current reporting period the
Company will introduce a formal process for the evaluation of senior
executives during the current reporting period.
(b) disclose for each reporting period whether
No evaluations were undertaken during the current reporting period.
a performance evaluation has been
undertaken in accordance with that process
during or in respect of that period.
105
No
The Company constituted a Nomination and Remuneration
Committee in June 2022.
Up until the constitution of the Nomination and Remuneration
Committee the full Board considered Board composition and
identifies and assesses candidates to fill any casual vacancy which
may arise from time to time.
The members of the Nomination and Remuneration Committee are:
Stuart Crow – Chairman
Robert Trzebski
Amalia Saenz
Robert Trzebski is considered an independent director. As he is
currently Executive Chairman, Stuart Crow is not an independent
director however the Board feel that at this time it is appropriate
that he chairs the committee as the Company establishes a North
American presence to serve our off-take customers, continue to
work with our US-based technology partner and engage capital
markets which is expected to include the appointment of new
Directors.
Amalia Saenz, in addition to her Directors duties, is engaged on an
consultancy basis to provide services to the Company in Argentina
and is not considered to be an independent Director by reason of
this consultancy arrangement. Given the current composition of the
Board the Directors feel that it is appropriate that Ms Saenz sits on
this committee.
The composition of this committee will be reviewed on the
appointment of new Directors.
The Charter of the Nomination and Remuneration Committee is
available on the Company’s website at http://www.lakeresources.
com.au.
No formal meetings of the Nomination and Remuneration
Committee were conducted in the reporting period.
During the reporting period the Company did not have a formal
board skills matrix. A skills matrix has been developed post the
reporting period. On a collective basis the skills indicate the current
Board has the mix of skills, experience and expertise that are
considered necessary at Board level to further the development of
the Company. The matrix reflects the Board’s objective to have an
appropriate mix of specific industry and professional experience
including skills such as mineral exploration, project development
leadership, governance, strategy, finance, risk management,
Government and community engagement and international
business operations.
2. Structure the board to be effective and add value
2.1.
The board of a listed entity should:
(a) have a nomination committee which:
(1)
has at least three members, a
majority of whom are independent
directors; and
(2)
is chaired by an independent
director,
and disclose:
(3)
the charter of the committee;
(4)
the members of the committee; and
(5)
as at the end of each reporting
period, the number of times
the committee met throughout
the period and the individual
attendances of the members at
those meetings; or
(b) if it does not have a nomination committee,
disclose that fact and the processes it
employs to address board succession
issues and to ensure that the board has the
appropriate balance of skills, knowledge,
experience, independence and diversity
to enable it to discharge its duties and
responsibilities effectively.
2.2. A listed entity should have and disclose a board
No
skills matrix setting out the mix of skills that
the board currently has or is looking to achieve
in its membership.
106
LAKE RESOURCES ANNUAL REPORT 2022
2.3. A listed entity should disclose:
Yes
(a) the names of the directors considered by
the board to be independent directors;
(b) if a director has an interest, position,
association or relationship of the type
described in Box 2.3 but the board is of the
opinion that it does not compromise the
independence of the director, the nature
of the interest, position or relationship in
question and an explanation of why the
board is of that opinion; and
(c) the length of service of each director.
The Chair, Mr Stuart Crow was until 20 June 2022, a non-executive
director and shareholder, yet is not a substantial security holder of
the Company such that that it would breach the factors relevant
to assessing the independence of a director per box 2.3. Mr Crow
assumed the position of Executive Chairman on 20 June 2022 and
as such is not considered and independent Director from that date.
The Board, however, considers that Mr Crow has demonstrated the
appropriate experience, skills and integrity to act independently
and without compromise in the best interests of the company, its
shareholders and the community.
During the reporting period Mr Nicholas Lindsay was an executive of
the Company and not considered independent.
Dr Robert Trzebski and Ms Amalia Saenz are considered to be
independent by the Board.
Mr David Dickson was appointed Managing Director on
15 September 2022 and as an executive is not considered
independent.
2.4. A majority of the board of a listed entity should
No
be independent directors.
Until 20 June 2022 the Board had a majority of independent
directors.
2.5.
The chair of the board of a listed entity should
be an independent director and, in particular,
should not be the same person as the CEO of
the entity.
2.6. A listed entity should have a program for
Yes
inducting new directors and for periodically
reviewing whether there is a need for
existing directors to undertake professional
development to maintain the skills and
knowledge needed to perform their role as
directors effectively.
With Mr Crow’s appointment as Executive Chairman on 20 June
2022 the Board does not have a majority of independent Directors.
The Board is currently assessing the appointment of further
independent Directors.
No
Until his appointment as Executive Chairman on 20 June 2022
the Chairman, Mr Stuart Crow was an independent non-executive
Director.
Until his resignation on 17 June 2022 Mr Promnitz is the CEO/
Managing Director.
The Board considered at the time of Mr Promnitz’s resignation that
it was appropriate for Mr Crow to become Executive Chairman as
the search for a new Managing Director was concluded.
Mr David Dickson was appointed Managing Director with effect
from 15 September 2022. Mr Crow will remain as Executive
Chairman for a short transitional period.
Upon appointment to the Board new Directors are provided with
access with Company policies and procedures and have access
to senior executives and other members of the Board to discuss
and gain an understanding of the Company’s operations and
activities. Site visits to the Company’s operations will also be made
available where appropriate. Directors are encouraged to attend
seminars and industry conferences which enable them to maintain
their understanding of relevant industry matters and technical
advancements effecting the Company’s operations.
107
3. Instill a culture of acting lawfully, ethically and responsibly
3.1.
A listed entity should articulate and disclose
its values.
Yes
The Company’s Corporate Code of Conduct applies to all Directors,
officers, contractors, senior executives and employees (Staff).
Staff are under the obligation to ensure that the Code of Conduct
is not breached. If any Staff notice any violations of the Conduct
of Conduct, they must notify the Managing Director, the Chair of
the Company or a supervisor (if applicable). The Directors must
ensure that reports of any breach of the Code of Conduct undergoes
thorough investigations and that appropriate action is taken by
the Company.
A copy of the Company’s Code of Conduct is available on the
Company’s website http://www.lakeresources.com.au.
3.2. A listed entity should:
(a) have and disclose a code of conduct for its
directors, senior executives and employees;
and
(b) ensure that the board or a committee of the
board is informed of any material breaches
of that code.
3.3. A listed entity should:
(a) have and disclose a whistleblower policy:
and
(b) ensure that the board or a committee of the
board is informed of any material incident
reported under that policy.
3.4. A listed entity should:
(a) have and disclose an anti-bribery and
corruption policy; and
(b) ensure that the board or a committee of the
board is informed of any material breaches
of that policy.
Yes
The Company has a code of conduct for its directors, senior
executives and employees and is published on the Company’s
website at http://www.lakeresources.com.au.
No
The Company adopted a formal Whislteblower Policy in June 2022
which is published on the Company’s website at http://www.
lakeresources.com.au.
The Whislteblower Policy provides a procedure for the Board to be
informed of any material incident reported under the policy.
Prior to the adoption of the policy the Company’s Code of Conduct
applied.
No
The Company has adopted a formal Anti-bribery and Corruption
Policy during the current reporting period which is published on the
Company’s website at http://www.lakeresources.com.au.
The Anti-bribery and Corruption Policy provides a procedure for
the Board to be informed of any material incident reported under
the policy.
Prior to the adoption of the policy the Company’s Code of
Conduct applied.
108
LAKE RESOURCES ANNUAL REPORT 2022
4. Safeguard the integrity of corporate reports
4.1.
The board of a listed entity should:
No
The Company constituted an Audit Committee in June 2022.
Up until the constitution of the Audit Committee the full Board
carried out the duties that would ordinarily be carried out by the
Audit and Risk Committee to verify and safeguard the integrity of
its financial reporting, including the processes for the appointment
and removal of the external auditor and the rotation of the audit
engagement partner.
The members of the Audit Committee are:
Robert Trzebski – Chairman
Stuart Crow
Amalia Saenz
Robert Trzebski is considered to be an independent director. As he
is currently Executive Chairman, Stuart Crow is not an independent.
Amalia Saenz, in addition to her Directors duties, is engaged on an
consultancy basis to provide services to the Company in Argentina
and is not considered to be an independent Director by reason of
this consultancy arrangement. Given the current composition of
the Board the Directors feel that it is appropriate that Mr Crow and
Ms Saenz sit on this committee.
The composition of this committee will be reviewed on the
appointment of new Directors.
The Charter of the Audit Committee is available on the Company’s
website at http://www.lakeresources.com.au.
No formal meetings of the Audit Committee were conducted in the
reporting period.
(a) have an audit committee which:
(1)
has at least three members, all of
whom are non-executive directors
and a majority of whom are
independent directors; and
(2)
is chaired by an independent
director, who is not the chair of the
board,
and disclose:
(3)
the charter of the committee;
(4)
(5)
the relevant qualifications and
experience of the members of the
committee; and
in relation to each reporting period,
the number of times the committee
met throughout the period and
the individual attendances of the
members at those meetings; or
(b) if it does not have an audit committee,
disclose that fact and the processes it
employs that independently verify and
safeguard the integrity of its corporate
reporting, including the processes for the
appointment and removal of the external
auditor and the rotation of the audit
engagement partner.
4.2.
The board of a listed entity should, before it
approves the entity’s financial statements for a
financial period, receive from its CEO and CFO a
declaration that, in their opinion, the financial
records of the entity have been properly
maintained and that the financial statements
comply with the appropriate accounting
standards and give a true and fair view of the
financial position and performance of the entity
and that the opinion has been formed on the
basis of a sound system of risk management
and internal control which is operating
effectively.
Yes
Prior to approving the Company’s financial statements for financial
periods ended 31 December 2021 and 30 June 2022, the Managing
Director/Executive Chairman and CFO provide a declaration to
the Board that, in their opinion, the financial records of the entity
have been properly maintained and that the financial statements
comply with the appropriate accounting standards and give a true
and fair view of the financial position and performance of the entity
and that the opinion has been formed on the basis of a sound
system of risk management and internal control which is operating
effectively.
The Board has formed the view that, given the size and nature of
the business of the Company during the reporting period, such a
process was not required in relation to the Company’s quarterly
cash flow reports. Commencing in the current reporting period the
declaration will be provided for the quarterly cashflow reports.
4.3. A listed entity should disclose its process to
verify the integrity of any periodic corporate
report it releases to the market that is not
audited or reviewed by an external auditor.
No
Major periodic corporate reports that are not audited or reviewed
by an external auditor are reviewed by the Board before release
and reports on exploration and drilling activities are signed by a
competent person as set out in the JORC code 2012 .
109
5. Make timely and balanced disclosure
5.1.
A listed entity should have and disclose
Yes
(a) a written policy for complying with its
continuous disclosure obligations under
listing rule 3.1.
5.2.
A listed entity should ensure that its board
receives copies of all material market
announcements promptly after they have been
made.
5.3. A listed entity that gives a new and substantive
investor or analyst presentation should release
a copy of the presentation materials on the ASX
Market Announcements Platform ahead of the
presentation.
Yes
Yes
6. Respect the rights of security holders
During the reporting period the Company adopted a Continuous
Disclosure Policy which is available on the Company’s website at
http://www.lakeresources.com.au.
Prior to the adoption of the formal policy the Board took ultimate
responsibility for continuous disclosure requirements and did not
consider adoption and disclosure of a formal disclosure policy
outside of its corporate governance statement appropriate.
Copies of all market announcements are circulated promptly after
they are made to the Board.
Any new and substantive presentations made by the Company
are released to the ASX Market Announcements Platform ahead
of the presentation, a copy of which is available on the Company’s
website, http://www.lakeresources.com.au. when released.
6.1.
A listed entity should provide information about
itself and its governance to investors via its
website.
Yes
The Company maintains a website containing comprehensive
information on the Company including a company profile, corporate
strategy, policy statements including corporate governance, Board
of Directors, newsflashes and contact information.
6.2. A listed entity should have an investor relations
program that facilitates effective two-way
communication with investors
Yes
All the Company’s quarterly, half year and annual reports and other
disclosures are available on the Company website: http://www.
lakeresources.com.au.
The Company’s Executive Chairman and Managing Director are
currently the Company’s contact for investors and potential
investors and makes themselves available to discuss the
Company’s activities when requested. Where appropriate Directors
provide assistance to the Executive Chairman and Managing
Director in dealing with investor relations
The Company communicates with shareholders via releases to the
market on the ASX platform, through the Company’s website, by
information provided directly to shareholders at briefing meetings
open to all shareholders and the public and at general meetings.
6.3. A listed entity should disclose how it facilitates
Yes
and encourages participation at meetings of
security holders.
The Company encourages shareholders to attend and participate
in general meetings. If a shareholder wishes to provide a comment
or question prior to the meeting for consideration at the meeting, a
process is provided for this prior to each meeting.
6.4. A listed entity should ensure that all
Yes
All resolutions at general meetings are decided by a poll.
substantive resolutions at a meeting of security
holders are decided by a poll rather than by a
show of hands.
6.5. A listed entity should give security holders the
Yes
option to receive communications from, and
send communications to, the entity and its
security registry electronically.
Security holders are given the option to receive communications
electronically
110
LAKE RESOURCES ANNUAL REPORT 2022
7. Recognise and manage risk
7.1.
The Board of a listed entity should:
No
(a) have a committee or committees to oversee
risk, each of which:
(1)
has at least three members, a
majority of whom are independent
directors; and
(2)
is chaired by an independent
director,
and disclose:
(3)
the charter of the committee;
(4)
the members of the committee; and
(5)
as at the end of each reporting
period, the number of times
the committee met throughout
the period and the individual
attendances of the members at
those meetings; or
(b) if it does not have a risk committee or
committees that satisfy (a) above, disclose
that fact and the processes it employs for
overseeing the entity’s risk management
framework.
7.2.
The board or a committee of the board should:
Yes
(a) review the entity’s risk management
framework at least annually to satisfy itself
that it continues to be sound; and that the
entity is operating with due regard to the
risk appetite set by the board; and
(b) disclose in relation to each reporting period,
whether such a review has taken place.
7.3. A listed entity should disclose:
Yes
(a) if it has an internal audit function, how
the function is structured and what role it
performs; or
(b) if it does not have an internal audit function,
that fact and the processes it employs for
evaluating and continually improving the
effectiveness of its risk management and
internal control processes.
The Company does not currently have a risk committee. At
this stage, the Board is responsible for the identification and
management of risks the Company may be exposed to.
As the Company progresses to the development stage the Company
will consider constituting a risk committee.
During the reporting period the Company undertook a
comprehensive review of its risk management practices and
implemented a comprehensive Risk Management System adopting
policies and procedures to the identification, a management and
reporting of risk.
The Company did not have an internal audit function during the
reporting period. The Board is responsible for the identification and
management of risks the Company may be exposed to. During the
reporting period the Company undertook a comprehensive review of
its risk management practices and implemented a comprehensive
Risk Management System adopting policies and procedures to the
identification, a management and reporting of risk.
111
7.4. A listed entity should disclose whether it has
Yes
any material exposure to environmental or
social risks and, if it does, how it manages or
intends to manage those risks.
Environmental: The operations and proposed activities of the
Company are subject to laws and regulations in the jurisdictions
in which it operates concerning the environment. As with most
exploration projects and mining operations, the Company’s
activities are expected to have an impact on the environment.
The Company’s conducts its activities to the highest standard
of environmental obligation, including compliance with all
environmental laws.
Social: The Board recognises that a failure to manage community
and stakeholder expectations may lead to disruption to the
Company’s operations. The Company’s Corporate Code of Conduct
outlines the Company’s commitment to integrity and fair dealing
in its business affairs and to a duty of care to all employees,
clients and stakeholders. The code sets out the principles covering
appropriate conduct in a variety of contexts and outlines the
minimum standard of behavior expected from employees when
dealing with stakeholders.
8. Remunerate fairly and responsibly
8.1.
The Board of a listed entity should:
(a) have a remuneration committee which:
(1)
has at least three members, a
majority of whom are independent
directors; and
(2)
is chaired by an independent
director,
and disclose:
(3)
the charter of the committee;
(4)
the members of the committee; and
(5)
as at the end of each reporting
period, the number of times
the committee met throughout
the period and the individual
attendances of the members at
those meetings; or
(b) if it does not have a remuneration
committee, disclose that fact and the
processes it employs for setting the
level and composition of remuneration
for directors and senior executives and
ensuring that such remuneration is
appropriate and not excessive.
No
The Company constituted a Nomination and Remuneration
Committee in June 2022.
Up until the constitution of the Nomination and Remuneration
Committee the full Board considered remuneration policy and other
remuneration related matters.
The members of the Nomination and Remuneration Committee are:
Stuart Crow – Chairman
Robert Trzebski
Amalia Saenz
Robert Trzebski and Amalia Saenz are considered independent
directors. As he is currently Executive Chairman, Stuart Crow
is not an independent director however the Board feel that at
this time it is appropriate that he chairs the committee as the
Company establishes a North American presence to serve our off-
take customers, continue to work with our US-based technology
partner and engage capital markets which is expected to include
the appointment of new Directors.
The Charter of the Nomination and Remuneration Committee is
available on the Company’s website at http://www.lakeresources.
com.au.
No formal meetings of the Nomination and Remuneration
Committee were conducted in the reporting period.
8.2. A listed entity should separately disclose
Yes
its policies and practices regarding the
remuneration of non- executive directors and
the remuneration of executive directors and
other senior executives.
The Company provides disclosure of its remuneration policies and
practices regarding the remuneration of non- executive directors
and the remuneration of executive directors and other senior
executives in the Remuneration Report which forms part of its
Annual Financial Statements.
112
LAKE RESOURCES ANNUAL REPORT 2022
8.3. A listed entity which has an equity- based
Yes
remuneration scheme should:
(a) have a policy on whether participants
are permitted to enter into transactions
(whether through the use of derivatives or
otherwise) which limit the economic risk of
participating in the scheme; and
(b) disclose that policy or a summary of it.
The Company’s trading policy states that Key Management
Personnel of the Company and their closely related parties should
enter into hedging transactions to limit their exposure in respect
of any unvested entitlement to securities they receive under any
equity-based remuneration scheme of the Company
9. Additional recommendations that apply only in certain cases
9.1.
A listed entity with a director who does not
speak the language in which board or security
holder meetings are held or key corporate
documents are written should disclose
the processes it has in place to ensure the
director understands and can contribute
to the discussions at those meetings
and understands and can discharge their
obligations in relation to those documents.
9.2. A listed entity established outside Australia
should ensure that meetings of security holders
are held at a reasonable place and time.
9.3. A listed entity established outside Australia and
an externally managed listed entity that has
an AGM, should ensure that is external auditor
attends its AGM and is available to answer
questions from security holders relevant to the
audit.
N/A
N/A
N/A
113
ADDITIONAL ASX INFORMATION
Top holders grouped report
Lake Resources N.L.
Security class:
As at date:
LKE - Ordinary Shares
17-Oct-2022
Position
Holder Name
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
CITICORP NOMINEES PTY LIMITED
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
BNP PARIBAS NOMS PTY LTD
MERRILL LYNCH (AUSTRALIA) NOMINEES PTY LIMITED
ACUITY CAPITAL INVESTMENT MANAGEMENT PTY LTD
US REGISTER CONTROL A/C
J P MORGAN NOMINEES AUSTRALIA PTY LIMITED
BNP PARIBAS NOMINEES PTY LTD
NATIONAL NOMINEES LIMITED
SYDNEY BUSINESS ADVISERS PTY LTD
BNP PARIBAS NOMINEES PTY LTD ACF CLEARSTREAM
SBL POSITIONS
MR DANIEL RUBEN BONAFEDE
MR SIMON JAMES KALINOWSKI
MS AINSLEY RUTH WILLIAMS
MR ANDREW ROBERT POWELL
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED - A/C 2
LEIGH MARTIN MARINE PTY LTD
202 LIMITED
SUPERHERO SECURITIES LIMITED
Total
Total issued capital - selected security class(es)
Holding
159,635,574
62,834,792
49,741,973
46,863,068
41,400,000
39,366,573
38,648,563
18,295,355
15,888,798
15,850,000
9,517,443
9,052,672
8,284,634
8,020,000
7,365,533
7,127,600
6,983,016
6,300,000
5,701,454
5,667,224
% IC
11.48%
4.52%
3.58%
3.37%
2.98%
2.83%
2.78%
1.32%
1.14%
1.14%
0.68%
0.65%
0.60%
0.58%
0.53%
0.51%
0.50%
0.45%
0.41%
0.41%
562,544,272
1,389,973,709
40.47%
100.00%
114
LAKE RESOURCES ANNUAL REPORT 2022
Holdings Range Report
Lake Resources N.L.
Security Class:
As at Date:
Price per security: $0.990
LKE - Ordinary Shares
17-Oct-2022
Holding Ranges
Holders
Total Units
% Issued Share Capital
above 0 up to and including 1,000
above 1,000 up to and including 5,000
above 5,000 up to and including 10,000
above 10,000 up to and including 100,000
above 100,000
Totals
8,461
14,638
5,662
8,384
1,272
38,417
5,330,919
38,847,761
43,445,898
250,941,861
1,051,407,270
1,389,973,709
0.38%
2.79%
3.13%
18.05%
75.64%
100.00%
Based on the price per security, number of holders with an unmarketable holding: 3158, with total 1,110,965, amounting to 0.08%
of Issued Capital
Class of shares and voting rights
At meetings of members or classes of members each member entitled to vote may vote in person or by proxy or attorney; and
on a show of hands every person present who is a member has one vote, and on a poll every person present in person or by
proxy or attorney has one vote for each ordinary share held.
On-market buy-back
There is no current on-market buy-back.
115
Unlisted Securities
As at 17 October 2022
Options at $0.30
Exp 09/03/2023
Options @ $0.55
EXP 12/07/24
Options @ $0.49
EXP 01/08/24
Options @ $1.48
EXP 19/01/25
PERFORMANCE
SHARES
Options @ $0.565
EXP 25/10/24
Options @ $1.00
EXP 01/03/2023
Options @
$0.75
2019
PERFORMANCE
EXP 15/10/2022
RIGHTS
Options @ $1.42
EXP 26/04/2025
Options @
$1.50 EXP
22/08/2025
Options @ $0.75
EXP 15/06/2025
Options @ $1.13
EXP 15/09/2027
Restricted
Stock Units
Holders
Total Units Holders
Total Units Holders
Total
Units
Holders
Total
Units
Holders
Total
Units
Holders
Total Units
Holders
Holders
Holders
Holders
Total Units Holders
Holders Total Units Holders Total Units Holders
Total
Units
Total
Units
Total
Units
-
-
1
5
6
-
-
128,125
6,396,032
-
-
-
1
-
-
-
2000,000
6,524,157
1
2,000,000
-
-
-
2
2
-
-
-
5,601,000
-
-
-
1
-
-
-
1,000,000
3
-
-
-
11
-
-
-
-
-
-
1
-
-
-
2,000,000
5,601,000
1
1,000,000
3
11
1
2,000,000
1
100,000
1
225,000
7,500,000
1
1,000,000
7,000,000
1
4,000,000
1
1,000,000
Total
Units
100,000
-
-
-
-
-
-
1
-
1
-
-
-
-
-
-
-
-
-
-
-
-
-
-
225,000
2
2
2,072,244
2,072,244
2
2
-
-
-
-
-
-
1
-
-
-
-
-
-
3
3
-
-
-
-
-
-
1
7,500,000
1,000,000
7,000,000
4,000,000
1,000,000
Total
Units
-
-
-
-
-
-
-
-
-
1
Range
Less than 1,000
Above 1,000 up to and
including 100,000
above 10,000 up to and
including 100,000
above 100,000
Totals
2,000,000
2,890,000
2,711,000
1,000,000
4
4
3
2,000,000
100,000
225,000
1,036,122
1,036,122
5,000,000
2,500,000
1,000,000
5,460,000
4,000,000
1,000,000
Holsers with > 20%
EMPERY ASSET MASTER
ROTH CAPITAL PARTNERS LLC
2,027,496
3,000,000
PETER NEILSEN
GKB VENTURES LTD
SD CAPITAL ADVISORY
ROBWARD PTY LTD
NICK LINDSAY
PETER NEILSEN
SEAN MILLER
GAUTAM PARIMOO
CORPORATE CONNECT
RESEARCH PTY
SIMON RUSSELL FRANCIS
GKB VENTURES LTD
SD CAPITAL ADVISORY
MR GEOFFREY STUART CROW
NICK LINDSAY
SEAN MILLER
DDIE SUGAR
DAVID DICKSON
116
LAKE RESOURCES ANNUAL REPORT 2022
Unlisted Securities
As at 17 October 2022
Range
Less than 1,000
Above 1,000 up to and
including 100,000
above 10,000 up to and
including 100,000
above 100,000
Totals
-
-
128,125
-
-
-
1
-
-
1
5
6
-
-
-
-
-
-
2
2
Holsers with > 20%
EMPERY ASSET MASTER
ROTH CAPITAL PARTNERS LLC
2,027,496
3,000,000
2,000,000
2,890,000
2,711,000
1,000,000
11
-
-
-
4
4
3
PETER NEILSEN
GKB VENTURES LTD
SD CAPITAL ADVISORY
ROBWARD PTY LTD
NICK LINDSAY
PETER NEILSEN
SEAN MILLER
GAUTAM PARIMOO
CORPORATE CONNECT
RESEARCH PTY
SIMON RUSSELL FRANCIS
GKB VENTURES LTD
SD CAPITAL ADVISORY
MR GEOFFREY STUART CROW
NICK LINDSAY
SEAN MILLER
DDIE SUGAR
DAVID DICKSON
Options at $0.30
Exp 09/03/2023
Options @ $0.55
Options @ $0.49
Options @ $1.48
PERFORMANCE
Options @ $0.565
EXP 12/07/24
EXP 01/08/24
EXP 19/01/25
SHARES
EXP 25/10/24
Options @ $1.00
EXP 01/03/2023
Options @
$0.75
EXP 15/10/2022
2019
PERFORMANCE
RIGHTS
Options @ $1.42
EXP 26/04/2025
Options @
$1.50 EXP
22/08/2025
Options @ $0.75
EXP 15/06/2025
Options @ $1.13
EXP 15/09/2027
Restricted
Stock Units
Holders
Total Units Holders
Total Units Holders
Holders
Holders
Holders
Total Units
Holders
Total
Units
Total
Units
Total
Units
-
-
-
-
-
-
1
-
-
-
3
-
-
-
-
-
-
1
-
-
-
-
1
-
-
6,396,032
2000,000
5,601,000
1,000,000
2,000,000
Total
Units
-
100,000
-
-
-
-
-
1
Holders
Total
Units
Holders
Total
Units
Holders
Total Units Holders
Total
Units
Holders Total Units Holders Total Units Holders
-
-
-
-
-
-
-
-
-
-
-
-
225,000
2
2
2,072,244
2,072,244
2
2
-
-
-
7,500,000
-
-
-
1
-
-
-
1,000,000
7,500,000
1
1,000,000
-
-
-
3
3
-
-
-
7,000,000
-
-
-
1
-
-
-
4,000,000
-
-
-
1
Total
Units
-
-
-
1,000,000
6,524,157
1
2,000,000
5,601,000
1
1,000,000
3
11
1
2,000,000
1
100,000
1
225,000
7,000,000
1
4,000,000
1
1,000,000
2,000,000
100,000
225,000
1,036,122
1,036,122
5,000,000
2,500,000
1,000,000
5,460,000
4,000,000
1,000,000
117
Mineral Resource
as at 30 June 2022
Kachi Mineral Resource Estimate - November 2018 (JORC Code 2012 Edition)
Area km2
Aquifer volume km3
Brine volume km3
Mean drainable porosity % (Specific
yield)
Element
Weighted mean
concentration mg/L
Resource tonnes
Lithium Carbonate
Equivalent tonnes
Potassium Chloride tonnes
RESOURCE ESTIMATE KACHI
Indicated
17.10
6
0.65
10.9
Inferred
158.30
41
3.2
7.5
Total Resource
175.40
47
3.8
7.9
Li
K
289
5,880
Li
209
K
4,180
Li
211
K
4380
188,000
3,500,000
638,000
12,500,000
826,000
16,000,000
1,005,000
6,705,000
3,394,000
24,000,000
4,400,000
30,700,000
Lithium is converted to lithium carbonate (Li2CO3) with a conversion factor of 5.32 Potassium is converted to potassium chloride (KCl) with a
conversion factor of 1.91
The Company engaged an independent consultant to prepare Mineral Resource estimates, in the course of doing so
the consultant has:
• Reviewed the 3D geological models that represent the interpreted geology, hydrogeology and groundwater profiles, based on
drilling and geological information supplied by Lake Resources NL.
• Completed statistical analysis and variography for economic elements.
• Estimated grades of economic elements using ordinary kriging and completed model validity checks.
• Classified the Mineral Reserve and Resource estimate in accordance with the JORC Code.
• Reported the estimates and compiled supporting documentation in accordance with JORC Code guidelines.
The information in this annual report that relates to the estimation and reporting of the Kachi Mineral Resource Estimate is
extracted from the ASX announcement dated 27 November 2018 which is available to be viewed at www.lakeresources.com.
au and www.asx.com.au. The Company confirms that it is not aware of any new information or data that materially affects
the information included in the announcement and that all material assumptions and technical parameters underpinning
the Mineral Resource estimate continue to apply and have not materially changed. The Company confirms that the form and
context in which the Competent Person’s findings are presented have not been materially modified from announcement.
There was no change in the Kachi Mineral Resource Estimate between 30 June 2022 and 30 June 2021.
118
LAKE RESOURCES ANNUAL REPORT 2022 SCHEDULE OF TENEMENTS
TOTAL NUMBER OF TENEMENTS: 115
TOTAL AREA TENEMENTS: 308,550 Ha
REF
TENEMENT NAME
NUMBER
AREA HECTARE
INTEREST
PROVINCE
STATUS
CATAMARCA
KACHI AREA
MARIA I
MARIA II
MARIA III
EX - 2021 - 00362285 - CAT
(140/2018)
EX - 2021 - 00373528 - CAT
(14/2016)
EX - 2021 - 00293511 – CAT
(15/2016)
KACHI INCA
EX - 2021 - 00361579 - CAT
(13/2016)
KACHI INCA I
EX - 2021 - 00432837 – CAT
(16/2016)
KACHI INCA II
EX - 2021 - 00221521 – CAT
(17/2016)
KACHI INCA III
EX - 2121 - 00321200 – CAT
(47/2016)
KACHI INCA V
EX - 2021 - 00208240 – CAT
(45/2016)
KACHI INCA VI
EX - 2021 - 00294250 – CAT
(44/2016)
DANIEL ARMANDO
EX - 2021 - 00208733 - CAT
(23/2016)
DANIEL ARMANDO
II
EX - 2021 - 00331263 – CAT
(97/2016)
MORENA 1
EX - 2021 - 00328638 – CAT
(72/2016)
MORENA 2
EX - 2021 - 00390312 – CAT
(73/2016)
MORENA 3
EX - 2021 - 00361695 – CAT
(74/2016)
MORENA 4
EX - 2021 - 00293790 – CAT
(29/2019)
MORENA 5
EX - 2021 - 00221381 – CAT
(97/2017)
MORENA 6
EX - 2021 - 00208283 – CAT
(75/2016)
MORENA 7
EX - 2021 - 00259078 – CAT
(76/2016)
1260
547
835
858
2880
2823
3355
305
110
3122
1590
3024
2989
3007
2968
1416
1606
2805
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
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
CATAMARCA
GRANTED
119
REF
TENEMENT NAME
NUMBER
AREA HECTARE
INTEREST
PROVINCE
STATUS
MORENA 8
EX - 2021 - 00294310 - CAT
(77/2016)
MORENA 9
EX - 2021 - 00368898 – CAT
(30/2019)
2961
2822
MORENA 10
EX - 2022 - 00508476 - CAT
2713
MORENA 12
EX - 2021 - 00259022 – CAT
(78/2016)
MORENA 13
EX - 2021 - 00258895 – CAT
(79/2016)
MORENA 15
EX - 2021 - 00360876 – CAT
(162/2017)
PAMPA I
PAMPA II
PAMPA 11
EX - 2021 - 00233741 – CAT
(129/2013)
EX - 2021 - 00430058 -CAT
(128/2013)
EX - 2021 - 00372498 – CAT
(201/2018)
PAMPA IV
EX - 2021 - 00322433 – CAT
(78/2017)
IRENE
EX - 2021 - 00212993 – CAT
(28/2018)
PARAPETO 1
EX - 2021 - 01648141 – CAT
(133/2018)
PARAPETO 2
EX - 2021 - 00235750 – CAT
(134/2018)
PARAPETO 3
EX - 2121 - 00261195 – CAT
(132/2018)
2704
3024
2559
690
1053
815
2569
2052
2281
1730
1892
PARAPETO III
EX - 2021 - 00854749 – CAT
1949
PARAPETO 4
EX - 2021 - 01651926 – CAT
1949
GOLD SAND I
EX - 2021 - 00376209 – CAT
(238/2018)
TORNADO VII
EX - 2021 - 00208328 – CAT
(48/2016)
DEBBIE I
EX - 2021 - 00196977 – CAT
(21/2016)
DOÑA CARMEN
EX - 2021 - 00321876 – CAT
(24/2016)
DIVINA VICTORIA I
EX - 2021 - 00368383 – CAT
(25/2016)
DOÑA AMPARO I
EX - 2021 - 00294138 – CAT
(22/2016)
854
6629
1743
873
2420
2695
120
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
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
CATAMARCA
GRANTED
CATAMARCA
GRANTED
CATAMARCA
GRANTED
CATAMARCA
GRANTED
CATAMARCA
GRANTED
LAKE RESOURCES ANNUAL REPORT 2022 REF
TENEMENT NAME
NUMBER
AREA HECTARE
INTEREST
PROVINCE
STATUS
ESCONDIDITA
EX - 2021 - 00143141 – CAT
(131/2018)
GALAN OESTE
EX - 2021 - 00153718 – CAT
(43/2016)
MARIA LUZ
EX - 2021 - 00153678 – CAT
(34/2017)
NINA
EX - 2021 - 00360751 – CAT
(106/2020)
PADRE JOSE
MARIA I
EX - 2021 - 00432843 – CAT
(95/2012)
PADRE JOSE
MARIA II
EX - 2021 - 00432950 -CAT
(96/2012)
PADRE JOSE MARIA
III
EX - 2021 - 00433095 – CAT
(94/2012)
PADRE JOSE MARIA
IV
EX - 2021 - 00433149 – CAT
(93/2012)
PADRE JOSE
MARIA V
EX - 2021 - 00647090 – CAT
(92/2012)
PADRE JOSE MARIA
VI
EX - 2021 - 00647273 – CAT
(91/2012)
PADRE JOSE MARIA
VII
EX - 2021 - 00647377 – CAT
(90/2012)
PADRE JOSE MARIA
VIII
EX - 2021 - 00647631 – CAT
(89/2012)
373
3167
2425
3125
650
1523
1523
1529
1584
1507
1500
515
52 Mining leases
103898 Ha
100
100
100
100
100
100
100
100
100
100
100
100
CATAMARCA
GRANTED
CATAMARCA
GRANTED
CATAMARCA
GRANTED
CATAMARCA
GRANTED
CATAMARCA
GRANTED
CATAMARCA
GRANTED
CATAMARCA
GRANTED
CATAMARCA
GRANTED
CATAMARCA
GRANTED
CATAMARCA
GRANTED
CATAMARCA
GRANTED
CATAMARCA
GRANTED
121
REF
TENEMENT NAME
NUMBER
AREA HECTARE
INTEREST
PROVINCE
STATUS
CATAMARCA
PEGMATITES
PETRA I
PETRA II
PETRA III
PETRA IV
CATEO 1
CATEO 2
CATEO 3
CATEO 4
LA AGUADA 1
LA AGUADA 2
LA AGUADA 3
LA AGUADA 4
LA AGUADA 5
LA AGUADA 6
LA AGUADA 7
LA AGUADA 8
8 Mining leases
8 Exploration
leases
EX - 2021 - 01020531 - CAT
(52/2016)
EX - 2021 - 00145689 - CAT
(51/2016)
EX - 2021 - 00145810 - CAT
(49/2016)
EX - 2021 - 00145665 - CAT
(50/2016)
EX - 2021 - 01349707 - CAT
(93/2016)
EX - 2021 - 00145782 - CAT
(94/2016)
EX - 2021 - 00147744 - CAT
(95/2016)
EX - 2021 - 00145516 - CAT
(98/2016)
EX - 2021 - 00145356 - CAT
(116/2016)
EX - 2021 - 00145468 - CAT
(117/2016)
EX - 2021 - 00229232 - CAT
(99/2016)
EX - 2021 - 00145863 - CAT
(173/2016)
EX - 2021 - 00145839 - CAT
(172/2016)
EX - 2021 - 00145928 - CAT
(174/2016)
EX - 2021 - 00169048 - CAT
(137/2016)
EX - 2021 - 00168791 - CAT
(139/2016)
10000
9524
9528
8939
10000
8475
10000
10000
2499
2950
1559
2929
2866
2999
2919
1587
96773 Ha
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
CATAMARCA
CATEO GRANTED
CATAMARCA
CATEO GRANTED
CATAMARCA
CATEO GRANTED
CATAMARCA
CATEO GRANTED
CATAMARCA
CATEO GRANTER
CATAMARCA
CATEO GRANTED
CATAMARCA
CATEO GRANTED
CATAMARCA
CATEO GRANTED
CATAMARCA
MINE GRANTED
CATAMARCA
MINE GRANTED
CATAMARCA
MINE GRANTED
CATAMARCA
MINE GRANTED
CATAMARCA
MINE GRANTED
CATAMARCA
MINE GRANTED
CATAMARCA
MINE GRANTED
CATAMARCA
MINE GRANTED
122
LAKE RESOURCES ANNUAL REPORT 2022 REF
TENEMENT NAME
NUMBER
AREA HECTARE
INTEREST
PROVINCE
STATUS
JUJUY - OLAROZ
OLAROZ EAST II
2168-D-2016
MASA 12
MASA 13
MASA 14
MASA 15
MASA 24
MASA 25
MASA 26
MASA 27
MASA 28
MASA 29
2234-M-2016
2235-M-2016
2236-M-2016
2237-M-2016
2743-M-2021
2820-M-2021
2815-M-2021
2819-M-2021
2818-M-2021
2822-M-2021
MASA 30
2821-M-2021
2816-M-2021
2821-M-2021
2824-M-2021
2814-M-2021
2825-M-2021
2826-M-2021
2827-M-2021
2817-M-2021
MASA 31
MASA 32
MASA 33
MASA 34
MASA 35
MASA 36
MASA 37
MASA 38
1 Mining lease
19 Exploration
leases
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
2072
3000
3000
3000
3000
900
122
2169
2894
2410
2376
2391
2262
2261
2277
2234
2259
2261
2261
2261
45410 Ha
JUJUY
JUJUY
JUJUY
JUJUY
JUJUY
JUJUY
JUJUY
JUJUY
JUJUY
JUJUY
JUJUY
JUJUY
JUJUY
JUJUY
JUJUY
JUJUY
JUJUY
JUJUY
JUJUY
JUJUY
APPLICATION
APPLICATION
APPLICATION
APPLICATION
GRANTED
APPLICATION
APPLICATION
APPLICATION
APPLICATION
APPLICATION
APPLICATION
APPLICATION
APPLICATION
APPLICATION
APPLICATION
APPLICATION
APPLICATION
APPLICATION
APPLICATION
APPLICATION
123
REF
TENEMENT NAME
NUMBER
AREA HECTARE
INTEREST
PROVINCE
STATUS
JUJUY -
CAUCHARI
CAUCHARI BAJO I
2156-D-2016
CAUCHARI BAJO II
2157-D-2016
CAUCHARI BAJO III
2158-D-2016
CAUCHARI BAJO V
2154-D-2016
CAUCHARI WEST I
2160-D-2016
MASA 39
2828-M-2021
1 Mining lease
5 Exploration
leases
375
363
125
952
1938
1749
5502 Ha
100
100
100
100
100
100
JUJUY
JUJUY
JUJUY
JUJUY
JUJUY
JUJUY
APPLICATION
APPLICATION
APPLICATION
APPLICATION
GRANTED
APPLICATION
REF
TENEMENT NAME
NUMBER
AREA HECTARE
INTEREST
PROVINCE
STATUS
JUJUY - PASO
MASA 9
MASA 16
MASA 17
MASA 18
MASA 19
MASA 20
MASA 21
MASA 22
MASA 23
MASA 40
MASA 41
MASA 42
MASA 43
MASA 44
MASA 45
MASA 46
MASA 47
MASA 48
PASO III
PASOVI
PASO X
2231-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
2911-M-2022
2912-M-2022
2913-M-2022
2914-M-2022
2915-M-2022
2916-M-2022
2917-M-2022
2918-M-2022
No Number
2137-P-2016
2140-P-2016
2144-P-2016
3 Mining lease
18 Exploration
leases
124
2986
3000
3000
3000
3000
3000
3000
2548
2406
2999
2999
2999
2849
2493
2976
2965
2783
892
2950
2210
1913
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
APPLICATION
GRANTED
APPLICATION
APPLICATION
APPLICATION
APPLICATION
APPLICATION
GRANTED
GRANTED
APPLICATION
APPLICATION
APPLICATION
APPLICATION
APPLICATION
APPLICATION
APPLICATION
APPLICATION
APPLICATION
APPLICATION
APPLICATION
APPLICATION
56967 Ha
100
JUJUY
APPLICATION
LAKE RESOURCES ANNUAL REPORT 2022 LAKE RESOURCES ANNUAL REPORT 2022
125
LAKE RESOURCES N.L.
Level 5, 126 Phillip Street
Sydney NSW 2000
T: +61 2 9299 9690
E: hello@lakeresources.com.au
lakeresources.com.au