Annual Report 2023
lakeresources.com.au
LAKE RESOURCES ANNUAL REPORT 2023
b
CORPORATE DIRECTORY
DIRECTORS
Stuart Crow
Non-Executive Chairman
David Dickson
Managing Director/CEO
Howard Atkins
Non-Executive Director
Cheemin Bo-Linn
Non-Executive Director
Ana Gomez Chapman
Non-Executive Director
Robert Trzebski
Non-Executive Director
MANAGEMENT
Peter Neilsen
Chief Financial Officer
John Freeman
Chief Legal Officer &
General Counsel
Mark Anning
Head of Legal, Australia &
Company Secretary
Karen Greene
Senior Vice President –
Investor Relations and
Communications
Scott Munro
Senior Vice President
– Technology, Strategy
and Risk
Sean Miller
Senior Vice President,
Field Development and
Evaluation
Amalia Sáenz
Senior Vice President,
Corporate Affairs & Country
Manager, Argentina
Gentry Brann
Chief People and
Administration Officer
PRINCIPAL REGISTERED
OFFICE AND PRINCIPAL
PLACE OF BUSINESS
Level 5, 126 Phillip Street
Sydney NSW 2000
Tel: +61 2 9299 9690
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
SOLICITORS
White & Case
Level 32
525 Collins Street
Melbourne VIC 3000
Australia
BANKERS
Citi
National Australia Bank
STOCK EXCHANGE
LISTINGS
Australian Securities
Exchange
(ASX code: LKE)
OTCQB: LLKKF
WEBSITE ADDRESS
www.lakeresources.com.au
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LAKE RESOURCES ANNUAL REPORT 2023
FY2023
HIGHLIGHTS
Lake Resources is on
Conditional Framework
track for completion of
comprehensive DFS in
December 2023 for Phase
1 plant capacity of 25ktpa
of battery grade lithium
carbonate.
Independent testing of Kachi
lithium carbonate confirmed
grades and purity greater
than 99.8%.
Agreements with
WMC Energy and SK On
in place.
Successful production
of 2,500kg of lithium
carbonate equivalent
(LCE) on-site at Kachi.
Important progress
towards optimal
power solution.
Kachi drilling program
indicates the lithium
resource is much larger than
initially anticipated.
Testing at Kachi proved
viability of extraction
and reinjection
processes.
Kachi operational update in June outlined clear path to battery
grade lithium carbonate production in 2027 and phased
expansion to target plant capacity of 50ktpa by 2030.
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CONTENTS
Message from the CEO
Message from the Chair
Review of Operations
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
2023 Corporate Governance Statement
Additional ASX Information
Resource Estimates and Governance
Schedule of Tenements
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157
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LAKE RESOURCES ANNUAL REPORT 2023
ABOUT LAKE RESOURCES
Lake Resources NL (ASX:LKE, OTC: LLKKF) is a responsible lithium developer utilising
state‑of‑the‑art ion exchange extraction technology for the production of sustainable,
high-purity lithium from its flagship Kachi Project.
Kachi is located in Catamarca Province
in Argentina’s Lithium Triangle. Lake
also has three additional early-stage
projects in this region, at Cauchari,
Olaroz and Paso de Jama.
The ion exchange extraction technology
being utilised at Kachi delivers a
solution for two rising demands – high
purity battery materials to drive the
global energy transition, and more
sustainable, responsibly-sourced
materials with a low carbon footprint
and significant ESG benefits.
Decarbonisation will continue to
drive significant lithium demand
growth through the rapid adoption of
renewable electricity generation and
electric vehicles, yet supply is falling
short of this demand.
Lake is building its business to meet
the growing demand for high-quality
lithium needed to meet the world’s
decarbonisation ambitions.
4
INNOVATIVE TECHNOLOGY
PRODUCING HIGH-PURITY LITHIUM
Lake’s technology partner, California-
based Lilac Solutions Inc, has developed
efficient and disruptive clean technology
to produce sustainable high purity
lithium. This approach comes with a
small environmental footprint, both
via compact physical infrastructure
and through re-injection of the brine to
its source.
Lake is commercialising a new
standard for project development in
the lithium industry. Working with Lilac
Solutions, the demonstration plant has
proven highly successful - independent
testing of lithium carbonate produced
from the Kachi Project in Argentina has
confirmed grades and purity greater
than 99.8%, or battery grade.
This is a new and more efficient way
to refine and produce battery-grade
lithium carbonate. The ion exchange
technology produces a lithium-rich
solution without long lead-times and
environmentally disruptive evaporation
pond concentration – allowing Lake
to produce high-quality lithium
sustainably and at scale. The chemical
process for Kachi was set out clearly in
the pre-feasibility study (PFS) in 2020,
which Lilac participated in.
Lake and Lilac are strategically aligned
through a 25% project earn-in on the
completion of technology testing,
demonstration plant validation and
end-product qualification.
LOCATED IN ARGENTINA’S
LITHIUM TRIANGLE
Lake’s flagship Kachi Project is located
in Catamarca Province within the
Lithium Triangle in Argentina, one of the
world’s key lithium regions – half of all
global lithium resources are found in
the Lithium Triangle.
MESSAGE FROM THE CEO
To my Fellow Shareholders,
I am pleased to present Lake Resources’ FY23 Annual Report.
This past financial year has been one of rapid developments
for Lake Resources, with systematic progress made towards
the definitive feasibility study (DFS) for our flagship Kachi
project. The Phase 1 DFS is on track for completion in
December 2023, as previously announced.
Recent operational updates have shown the methodical and
sustained progress at the Kachi site, and I want to take this
opportunity to commend our team on the ground for their
excellent work. At the heart of any business is its people, and I
am particularly proud of this and the range of other successes
the Lake team has delivered this year.
This includes the recent completion of successful extraction
and injection testing at Kachi, which provided important data
and higher confidence for our modelling, demonstrating the
viability of our extraction and injection processes to support
the production of high purity battery grade lithium. This
testing represents an important milestone for the project on
our path to achieving the DFS.
Additionally, our drilling program at Kachi has also shown the
large scale and quality of the lithium-bearing brine at the site.
The drilling results indicate that this resource is much larger
than initially anticipated as the known lithium brine extent
continues to expand laterally and vertically.
This follows the earlier discovery of additional lithium-bearing
brine in the planned reinjection areas to the north and south
of the previously measured resource, which extends the lateral
extent of the reservoir beyond previous internal estimates.
We have also drilled deeper for better grades and improved our
drilling performance by 40 percent this year, a testament to
our industry-leading operational team on the ground.
In June, we announced an operational update that reset
the Kachi project, charting a credible, achievable path to
battery grade lithium carbonate production beginning in
2027. The new phased approach of building two, staggered
25Ktpa plants de-risks the project execution and accelerates
our time to first lithium production, with clear milestones.
It also provides the expansion optionality to 50ktpa, and
potentially more.
As part of this reset, we also extended the project timeline and
shared significantly higher project cost estimates than what
had previously been projected. Understandably this news
was disappointing to many of our shareholders; however, we
continue to believe in the superior economics this project
offers, and we are confident that this path to production will
unlock value and maximise execution efficiency.
Earlier this year we also announced, together with our
technology partner, Lilac Solutions, the successful production
of 2,500kg of lithium carbonate equivalent (LCE) at Kachi – an
important milestone for the project completing the pilot phase.
The successful execution of ion exchange and process flow
sheet for brine to battery grade lithium carbonate conversion
demonstrated commercial-scale production capability.
The independent third-party testing of the lithium carbonate
produced at our joint Kachi project confirmed grades and
purity greater than 99.8%, or battery grade – the grade at which
it can be shipped direct to manufacturers in the United States,
Europe and Asia.
We have also made important progress towards finalising our
power framework. Our revised design includes the capability
for off-grid commissioning, including an option for 100 per
cent standalone solar and battery backup. We are pleased to
now have this optionality to power operations at Kachi, which
takes into consideration aspects of grid connection and the
needs of local communities.
In the past year, we announced agreements with our world-
class offtake partners, Europe’s WMC Energy and Korea’s
SK On. We have conditional framework agreements in place
with both parties for up to 25 ktpa and a 10 percent equity
investment in Lake. There is a clear, growing demand for
sustainable lithium supply from a wide range of global buyers
and Kachi is essential to meet this need.
As lithium supply becomes an increasingly important
geopolitical consideration, Lake Resources is playing a critical
role in discussions related to strengthening lithium supply
chains, including with regulators and policy agencies in
Argentina, Australia and the United States.
5
We also expanded and reorganised our operating team to
better support the technical needs of our on-the-ground
developments, and to ensure we have in place the right team
to execute on the next phase of Lake’s development.
This experienced, well-credentialled and highly motivated
management team is ready to deliver on Lake’s new strategy
and accelerate the Company’s next growth phase.
The team’s experience spans technical, financial and
project execution, supported by our operational team who
bring significant technical and construction expertise on
major capital projects across the lithium sector and other
extractive industries.
I would like to take this opportunity to thank the entire Lake
Resources team for the excellent progress made over the
past year. We are excited about moving to the next phase in
delivering responsible lithium supply to support the world’s
energy transition.
David Dickson
Managing Director / CEO
We were pleased to welcome Argentina’s Mining Minister,
Fernanda Avila, to Australia last year for IMARC along with the
many delegation members who accompanied her from across
Argentina, including Catamarca. We continue to engage
regularly with Argentinian officials at the Federal, State, and
local levels and welcome their strong support for developing
the Argentinian lithium sector and for Lake Resources.
We would also like to thank the Australian and the United
States governments for their strong support and ongoing
engagement with Lake Resources, both through their overseas
missions and in their capitals, Canberra and Washington,
D.C., respectively.
We are also working together with our peers in the lithium
sector to help ensure a comprehensive perspective on
the challenges and opportunities for increasing lithium
production in the years ahead.
This past financial year has seen valuable additions to our
executive team. These include:
Mark Anning as Head of Legal in Australia and Company
Secretary
Gentry Brann as Chief People and Administration Officer
John Freeman as Chief Legal Officer and General Counsel
Karen Greene as a Senior Vice President to lead
investor relations
Scott Munro as a Senior Vice President to lead technology
relationships
Amalia Sáenz, as a Senior Vice President to lead
Corporate Affairs in Argentina
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LAKE RESOURCES ANNUAL REPORT 2023 7
MESSAGE FROM THE CHAIR
To my Fellow Shareholders,
It is my pleasure to report on such an eventful year at Lake
Resources, where we have made significant progress on
important project milestones.
Our vision is to become a growing contributor to the
energy transition by producing high-purity lithium,
operating sustainably, and improving lives. Fundamental
to this vision is the important role of lithium in the world’s
decarbonisation journey.
This past financial year has also seen sector-leading experts
added to our Board. This includes the addition of:
Howard Atkins as a Non-Executive Director, bringing
financial management, capital markets, foreign exchange,
governance, and public company experience. Mr. Atkins has
over 30 years of financial leadership experience, including
20 years serving as a CFO for organisations including Wells
Fargo, New York Life Insurance Company, and Midlantic
Bank Corporation.
Dr. Cheemin Bo-Linn as a Non-Executive Director, bringing
experience in ESG, governance, and the new energy sector.
Dr Bo-Linn is an accomplished CEO, former Fortune 100
operations executive, and board director with over 25 years
of governance expertise at private organisations and public
companies across the Americas and Europe.
Ana Gomez Chapman as a Non-Executive Director, bringing
experience in critical minerals supply chains, environmental
engineering, and capital markets. Ms. Chapman is a financial
services executive and board director with over 28 years of
investment management, capital markets and business
leadership experience. She has worked and lived across the
U.S., Europe, Latin America and Asia Pacific.
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Lake’s new directors bring exceptional experience in
governance and oversight and are an invaluable resource
for enhancing Lake’s corporate governance structure. This
is a top priority for Lake, and we are committed to further
developing greater rigour around these disciplines as the
Company matures.
On behalf of the Board of the Company, I would like to thank
Dr Nicholas Lindsay, who retired as a director in November
2022, for his significant contribution to the progress made
on the development of the Kachi Project while leading the
technical team.
Lithium supply has consistently struggled to keep pace
with demand, and the drivers behind this demand continue
– including the expanding market for electric vehicles
and electrified power solutions, and the lack of battery
alternatives, as well as the scarcity of active lithium projects
and the years-long lead times many of these projects require.
We expect this demand to continue to increase.
An additional factor complicating lithium supply chains is
international consumption tensions – China dominates the
market as a producer and consumer, driving demand by
companies and countries for supply chains outside of China.
Lake’s strategy is supported by these market dynamics. Direct
lithium extraction (DLE) and direct lithium production (DLP)
technologies are expected to accelerate the ability to scale the
supply of battery grade lithium.
Our processes are also more sustainable, and result in cleaner
lithium by design, which is better for the environment and our
neighbouring communities.
The four key pillars underpinning our quality-conscious
commitment to sustainability:
Higher lithium recovery (15% higher than hardrock and
60% higher than evaporation ponds)
Lower water usage (10x lower freshwater usage than
hardrock; and 5x lower freshwater usage and 45x lower brine
water usage than evaporation ponds)
Lower land usage (7x lower than hardrock and 600x lower
than evaporation ponds)
Lower volume of solid waste (50x lower than hardrock
and 55x lower than evaporation ponds)
We are also working hard to build strong relationships with
surrounding communities. Our long-term success goes
hand-in-hand with enhancing the broader wellbeing of the
communities and regions in which we operate.
Local communities will benefit from access to better
infrastructure, employment opportunities, and economic
development, and we are committed to ensuring we work
respectfully and collaboratively with the members of the
communities in which we plan to operate.
LAKE RESOURCES ANNUAL REPORT 2023 Maintaining the support of these communities and our
social licence to operate is a key priority. Our community
engagement has included holding two Public Information
Meetings, in May and August – these were well-attended
by the local community, and the information shared was
well-received.
We are focused on bringing jobs to the communities in which
we operate, which in the last year has included local hires in
the Carachi Pampa and El Penon communities. We are also
working with provincial authorities to promote training for the
community, with a focus on training programs directly related
to the future construction phase at the site.
Alongside this, we continue our rigorous focus on the safety
and wellbeing of our employees – the health and safety of our
people is integral to our operations, and we believe nothing
less than zero harm is acceptable.
Argentina is a key market for global lithium supply chains
to support the world’s decarbonisation. Argentina’s Lithium
Triangle holds ~56% of the world’s lithium reserves and
the government is committed to efficiently developing the
country’s lithium resources, including via investments in
Argentina’s lithium sector.
Lake has a large lease holding in Argentina, covering 2,200km
(550,000 acres), including our flagship Kachi project, and is
well-positioned to optimise its lithium assets, resources, and
relationships in Argentina.
We have a tremendous opportunity here and we are pleased to
be taking part in the world’s decarbonisation journey.
Stuart Crow
Non-Executive Chairman
9
REVIEW OF OPERATIONS
1. Kachi Project
At the Kachi Project in Catamarca, Lake’s flagship project, the
maiden JORC-compliant mineral resource was defined with 4.4
million tonnes (Mt) of contained battery grade lithium carbonate
equivalent (LCE), comprising 1 Mt LCE Indicated Resource, and 3.4
Mt LCE Inferred Resource, over the deepest part of a large basin.
Lease holdings have been consolidated and expanded over an
area of more than 100,000 Ha. The resource estimate for the
Kachi Project was updated during the 2023 reporting period. As
of 30 June 2023, the JORC-compliant mineral resource estimate
is comprised of 2.9 Mt LCE as Measured and Indicated Resource
and 5.2 Mt LCE as Inferred Resource (Figure 1 and Table 1).
Exploration drilling conducted since the 2018 maiden resource
estimation has built on previous knowledge. The ongoing
hydrogeological characterization activities started in 2022
have resulted in more than 4,000 m of drilling and have led
to a significantly improved understanding of both the spatial
and vertical extent of lithium brine and the permeability of the
reservoir materials. These recent studies have demonstrated
that the resource potential within the basin is much larger than
previously defined (as disclosed to investors on the Company’s
website and on the ASX, including after the date of this annual
report – please see https://lakeresources.com.au/investors/
asx-announcements). These results will be incorporated into
the Phase 1 Definitive Feasibility Study (DFS), and ultimately, the
Phase 2 DFS.
The extensive hydrogeological characterization program has
provided a substantive data set that has led to basin-scale
and site-scale conceptual models. These conceptual models
will form the basis for the ongoing hydrogeological modeling
of the extraction and injection well fields for the Phase 1 DFS. A
key element of site-scale conceptual model is the delineation
of hydrostratigraphic units. The hydrostratigraphic units are
generalized based on similar geological and hydrogeological
conditions that are correlated in the resource area (see Figure 2).
Unit A – Intercalated sand, silts and clays. High frequency of
thin clay bands. Up to 200 m thickness.
Unit B – Higher sand proportion. Interpreted as higher
permeability zone, lower natural gamma ray response,
located below prominent gamma peak.
Unit C – Similar to Unit A with higher frequency of clay bands.
Unit D – Undefined unconsolidated sediment characteristics
beneath Unit C, between 400 m and the base of the basin fill,
as defined by geophysics. The characteristics of this unit have
not been defined, with Unit C likely to continue below 400 m
being the maximum depth of drilling and testing disclosed
as of June 30, 2023 (however, further drilling updates have
been disclosed and may continue to be disclosed to investors
on the Company’s website and the ASX after the date of this
annual report – please see https://lakeresources.com.au/
investors/asx-announcements).
Recent drilling further from the central resource area has
intersected extensive (to 400 m) thicknesses of sands and
gravels beneath ignimbrites in the south, west and north of
the central resource area with higher drainable porosity and
permeability. These step-out holes drilled near the limits of
the previously defined north and south extents of the January
2023 Inferred Resource, K21D38 (K21) and K22D39 (K22),
recorded average lithium grades of 219 milligrams per liter
(mg/l) and 283 mg/l, respectively from piezometers screened
from 395 to 407 m below ground surface. These drilling and
laboratory lithium data, combined with the recent TEM survey,
provides evidence for future definition of additional resources.
These coarser grained units show relatively rapid transition
from the finer grained sediments of the central resource area.
10
LAKE RESOURCES ANNUAL REPORT 2023 Figure 1: Lake Resources’ properties and drill platform locations in the Kachi Project area, showing drilling concentrated over the salar
area, with the resource outlines shown. This map was disclosed and made available on the Company’s website and on the ASX in the
Company’s JORC update dated June 15, 2023. No exploration or production targets, nor new estimates of inferred mineral resources,
indicated mineral resources or measured mineral resources in relation to the Kachi Project are being reported in this annual report, and
the mineral resources last reported in the announcement on June 15, 2023 have not materially changed since that date.
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Figure 2: Geological cross section looking north through the Kachi Project area, shown with 4 times vertical exaggeration.
Table 1: Updated resource estimate of contained lithium for the Kachi Project – as at June 30, 2023*
Measured June 2023
Unit
Sediment
volume m3
Specific
Yeld %
Brine volume
m3
Litres
A
B
C
14,620,000,000
4,594,900,000
8,487,400,000
0.07
0.08
0.06
1,073,675,256
1,073,675,256,000
358,054,366
358,054,366,070
543,960,861
543,960,860,960
Total
27,702,300,000
1,975,690,483
1,975,690,483,030
Indicated June 2023
Unit
Sediment
volume m3
Specific
Yeld %
Brine volume
m3
Litres
A
B
C
5,559,400,000
1,968,900,000
3,528,700,000
0.07
0.07
0.06
401,416,477
401,416,477,000
144,809,839
144,809,838,540
225,883,379
225,883,378,840
Total
11,057,000,000
772,109,694
772,109,694,380
Li
mg/l
200
222
223
210
Li
mg/l
172
176
177
174
Combined Measured + Indicated
Li grams
Li
Tonnes
Tonne
LCE
214,735,051,200
214,735
1,142,390
79,488,069,268
79,488
422,877
121,303,271,994
121,303
645,333
415,526,392,462
415,526
2,210,600
Li grams
Li
Tonnes
Tonne
LCE
69,043,634,044
69,044
367,312
25,486,531,583
25,487
135,588
39,981,358,055
39,981
212,701
134,511,523,682
134,512
715,601
38,759,300,000
-
2,747,800,177
2,747,800,177,410
550,037,916,143
550,038
2,926,202
Inferred June 2023
Unit
Sediment
volume m3
Specific
Yeld %
Brine volume
m3
Litres
A
B
C
35,100,000,000
8,982,700,000
20,794,000,000
0.08
0.07
0.07
2,695,188,600
2,695,188,600,000
661,907,317
661,907,316,630
1,534,617,994
1,534,617,994,000
Total
64,876,700,000
4,891,713,911
4,891,713,910,630
Li
mg/l
188
201
218
199
Li grams
Li
Tonnes
Tonne
LCE
506,695,456,800
506,695
2,695,620
133,043,370,643
133,043
707,791
334,546,722,692
334,547
1,779,789
974,285,550,135
974,286
5,183,199
*This table was disclosed and made available on the Company’s website and on the ASX in the Company’s JORC update dated June 15, 2023. No exploration or
production targets, nor new estimates of inferred mineral resources, indicated mineral resources or measured mineral resources in relation to the Kachi Project
are being reported in this annual report, and the mineral resources last reported in the announcement on June 15, 2023 have not materially changed between that
date and the end of financial year balance date, being June 30, 2023, the date of this annual report.
12
LAKE RESOURCES ANNUAL REPORT 2023 JORC definitions were followed for mineral resources.
3. Additional Property Updates
The Competent Person for this Mineral Resource estimate is
Andrew Fulton, MAIG.
No internal cut-off concentration has been applied to the
resource estimate. The resource is reported at a zero mg/l
cut-off, given the consistent grade of the deposit.
Paso de Jama
Olaroz
Ancasti
Cauchari
Numbers may not add due to rounding.
Specific Yield (Sy) = Drainable Porosity
Lithium is converted to lithium carbonate (Li2CO3) with a
conversion factor of 5.32.
The resource estimate outlined above presents lithium
and lithium carbonate tonnages. Resource estimations
include three separate geological and hydrogeological
(hydrostratigraphic) units to 400 m depth.
*See Figure 1 for the map showing the geographical area – all within
the Kachi Project area - based on the materiality of the mineral
resources reported in Table 1.
2. Comparison since the last reporting period
The mineral resource estimate for the Kachi Project has
expanded significantly since the 2022 Annual Report. The
expansion of the Measured and Indicated resource and
the Inferred resource are a result of large a hydrogeologic
characterization program started in 2022 which continued
through the 2023 financial year, and remains ongoing.
The hydrogeologic characterization program has led to a
significantly improved understanding of both the spatial and
vertical extent of lithium brine as well as the permeability of
the reservoir material. These studies demonstrated that the
resource potential at the Kachi Project is larger than the defined
resource reported in the Company’s 2022 annual report, and
explains the material changes in the defined resource reported
in this year’s annual report – see Table 2 below.
The Paso de Jama Lithium Brine Project in Jujuy Province
is comprised of over 59,000 hectares and initial surface
geophysical surveys, passive seismic and TEM were
completed in 2022. Drilling was through the end of 2022 and
resulted in more than 1,700 meters of drilling with and five
small diameter wells. Activities in 2023 included analyzing
and processing the investigation results, performance of
small-scale hydraulic tests in several wells and laboratory
properties analysis for physical characteristics including
drainable porosity. As at the date of this annual report, no
resource has been developed for the Paso de Jama Lithium
Brine Project.
Activities at the more than 45,000 hectare Olaroz Lithium
Brine Project were limited to permitting and community
relations activities in 2023. These efforts have laid the
groundwork to initiate surface geophysical studies including
passive seismic and transient electromagnetic (TEM) are
planned for Q4 2023 with drilling anticipated to start in 2024.
The Ancasti or Catamarca Pegmatite Lithium Project, is
comprised of over 90,000 hectares of leases at the early
exploration stage with large pegmatite swarms in an area of
past production within a 150 km long belt. After a hiatus in
investigative exploration, further mineral resource exploration
is planned for the 2023/24 reporting period.
The Cauchari Lithium Brine Project in Jujuy Province was
successfully drilled for the first time during 2019 / 2020. It
demonstrated extensions of lithium brine bearing aquifers
with similar high grades into Lake’s properties from the
adjoining major resource projects. No further investigative
drilling was undertaken in 2023.
Table 2 Comparison of defined resource for the Kachi Project – 2023 and 2022
Measured
(Tonnes LCE)
Indicated
(Tonnes LCE)
Measured and
Indicated (Tonnes
LCE)
Inferred
(Tonnes LCE)
Total
(Tonnes LCE)
Increase in Resource
+2,210,600
2,210,600
--
715,601
1,005,000
-289,399
2,926,202
1,005,000
+1,921,202
5,183,199
3,394,000
+1,789,199
8,109,401
4,400,000
+3,709,401
Year
2023
2022#
#The 2022 annual report and the maiden Kachi Mineral Resource Estimate from November 2018 that forms the basis of the resource included in the 2022 Annual
Report are available at www.lakeresources.com. au and www.asx.com.au.
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Lake Resources NL
Directors' report
For the year ended 30 June 2023
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 2023.
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 (resigned 5 January 2023)
S. Crow, Non-Executive Chairman (appointed 5 January 2023)
D. Dickson, Managing Director and Chief Executive Officer (appointed 15 September 2022)
N. Lindsay, Executive Technical Director (resigned 3 October 2022)
N. Lindsay, Non-Executive Director (appointed 3 October 2022, resigned 28 November 2022)
R. Trzebski, Non-Executive Director
C. Bo-Linn, Non-Executive Director (appointed 5 December 2022)
H. Atkins, Non-Executive Director (appointed 5 December 2022)
A. Saenz, Non-Executive Director (resigned 1 February 2023)
A. Gomez Chapman, Non-Executive Director (appointed 1 January 2023)
The company secretary is Mr. Mark Anning. Mr. Mark Anning was appointed to the position of company secretary in
January 2023 after Mr. Peter Neilsen resigned from the position on 9 January 2023.
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;
(b) Exploration for minerals.
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 $47,253,043 (2022 loss: $5,683,093).
Corporate Strategy
Lake is transitioning from the evaluation and exploration phase to the next stage of development. Good progress was
made during the period at the Demonstration Plant and recent updates of the Kachi Mineral Resource Estimate were
announced. With the ongoing recruitment of talented experts, the realignment and new focus of the organization and
the enrichment of the Lake Board, Lake is well positioned to complete the development of Kachi, while pursuing the
development of Cauchari, Olaroz and Paso de Jama.
Lake looks forward to continuing this progress towards the production of high-quality, sustainable lithium for its
customers and delivering value to all stakeholders.
14
2
LAKE RESOURCES ANNUAL REPORT 2023 Lake Resources NL
Directors' report
For the year ended 30 June 2023
Directors and company secretary
of this report, unless otherwise stated:
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 2023.
S. Crow, Executive Chairman (resigned 5 January 2023)
S. Crow, Non-Executive Chairman (appointed 5 January 2023)
D. Dickson, Managing Director and Chief Executive Officer (appointed 15 September 2022)
N. Lindsay, Executive Technical Director (resigned 3 October 2022)
N. Lindsay, Non-Executive Director (appointed 3 October 2022, resigned 28 November 2022)
R. Trzebski, Non-Executive Director
C. Bo-Linn, Non-Executive Director (appointed 5 December 2022)
H. Atkins, Non-Executive Director (appointed 5 December 2022)
A. Saenz, Non-Executive Director (resigned 1 February 2023)
A. Gomez Chapman, Non-Executive Director (appointed 1 January 2023)
The company secretary is Mr. Mark Anning. Mr. Mark Anning was appointed to the position of company secretary in
January 2023 after Mr. Peter Neilsen resigned from the position on 9 January 2023.
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;
(b) Exploration for minerals.
Dividends
Review of operations
Corporate Strategy
There were no dividends paid, recommended, or declared during the current or previous financial year.
The loss from ordinary activities after income tax amounted to $47,253,043 (2022 loss: $5,683,093).
Lake is transitioning from the evaluation and exploration phase to the next stage of development. Good progress was
made during the period at the Demonstration Plant and recent updates of the Kachi Mineral Resource Estimate were
announced. With the ongoing recruitment of talented experts, the realignment and new focus of the organization and
the enrichment of the Lake Board, Lake is well positioned to complete the development of Kachi, while pursuing the
development of Cauchari, Olaroz and Paso de Jama.
Lake looks forward to continuing this progress towards the production of high-quality, sustainable lithium for its
customers and delivering value to all stakeholders.
The following persons were Directors of Lake Resources NL during the whole of the financial year and up to the date
Kachi Lithium Brine Project - Catamarca Province, Argentina
Lake Resources NL
Directors' report
For the year ended 30 June 2023
Operations
Overview of Operations for the Year
With the benefit of new leadership and the enhancement of technical expertise on its operations team, Lake made
significant progress in the development of Kachi over the past year, achieving major milestones at the Demonstration
Plant using Lilac DLE technology, proving out the process flow sheet from brine to battery grade lithium carbonate,
and bringing critical technical definition to the project plan, specifically around power, infrastructure, and logistics.
Proven DLE process flow sheet
The DLE demonstration plant was continuously operational for more than 2,500 hours with 90% uptime. 120,000
litres of eluate containing 2,500kg of lithium carbonate equivalent (LCE) was successfully produced, exceeding
battery grade requirements of greater than 99.8 purity. Based on these results, Lilac earned 20% of its potential 25%
equity interest in the Kachi project.
Significant Resource Expansion
Lake announced a resource update revealing a 53 percent increase in resources at Kachi with Measured, Indicated
and Inferred increasing from 5.29 Million Tons (Mt) to more than 8.1 Mt of battery grade Lithium Carbonate
Equivalent (LCE) (ASX 15 June 2023). The mineral resources last reported on June 15, 2023, have not materially
changed since that date.
Subsequent to the resource update, further drilling intercept results indicated that the resource is much larger than
initially anticipated as the known lithium brine extent continues to expand laterally and vertically (ASX 22 August
2023). Furthermore, lithium grades from recent extraction tests are 20 percent higher than exploration samples.
Further JORC updates are expected prior to submitting the DFS.
Proven Successful Extraction and Injection
Lake proved the concept of extraction and injection to support the production of high purity battery grade lithium
carbonate at Kachi (ASX 16 August 2023). The extraction and injection testing confirms highly favorable reservoir
hydraulic properties and are indicative of high-yield, production-scale, extraction wells in the core resource area.
Kachi Project Reset
Based on conclusions following a rigorous assessment of the project, Lake reset the production plan, timelines, and
estimated costs of the project. The new approach significantly de-risks the project, with a phased development plan
to target plant capacity of 50,000 tpa battery grade lithium carbonate (ASX 19 June 2023).
Key target milestones and estimates for Kachi are outlined below:
Two phases of 25,000 tpa each
•
• On track for December 2023 submission of Initial DFS for Phase 1 targeting capacity for 25,000 tpa battery grade
lithium carbonate
EIA Submission for Phase 1 targeted for Q1 2024
First lithium production targeted for 2H 2027
Estimated CAPEX range : $1.1B -$1.5B
Estimated OPEX run rate range : $4.70 - $7.10/kg
•
•
•
•
2
3
1515
Lake Resources NL
Directors' report
For the year ended 30 June 2023
Operations (continued)
Overview of Operations for the Year (continued)
Kachi Lithium Brine Project - Catamarca Province, Argentina (continued)
Power Solution
Lake made significant progress identifying a power solution for the project. The base case for the project includes an
off-grid solution for train 1 commissioning and start-up with connection to the grid for full Phase 1 capacity. Lake
continues to review alternatives including a full off-grid solution for Phase 1 built around solar and battery storage with
technical reviews ongoing at this time (ASX 23 August 2023).
Other project updates
While the development of Kachi is Lake’s top priority and key focus, the company is continuing its exploration work at
its three 100-percent owned projects, Olaroz, Cauchari and Paso de Jama. We continue to work with local
communities and authorities to obtain additional permits and plan to conduct further geophysics and hydraulic
conductivity testing in the coming months. Lake is also submitting a prospecting EIA at its pegmatite deposit at
Ancasti in Catamarca to begin early assessment of value and interested parties.
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)
As previously announced, Lake received Expressions of Interest from The UK Export Finance (UKEF), the Export
Credit Agency (ECA) of the United Kingdom, (ASX 11 August 2021) and from Canada’s Export Credit Agency, EDC,
to potentially support approximately 70% of the total finance required for Lake’s Kachi Project (ASX 28 September
2021). These Expressions of Interest remain in place following the Kachi Project reset, and discussions with UKEF
and EDC are ongoing.
Cash position
Lake held cash of A$89,217,466 as at 30 June 2023 (in AUD, USD and Argentine Pesos) with no debt. The Company
is financed through to the Definitive Feasibility Studies (DFS) but may need to issue capital or get off-take partners
deposits for the Kachi project in addition to the Expressions of Interest.
16
4
LAKE RESOURCES ANNUAL REPORT 2023 Lake Resources NL
Directors' report
For the year ended 30 June 2023
Operations (continued)
Overview of Operations for the Year (continued)
Kachi Lithium Brine Project - Catamarca Province, Argentina (continued)
Power Solution
Lake made significant progress identifying a power solution for the project. The base case for the project includes an
off-grid solution for train 1 commissioning and start-up with connection to the grid for full Phase 1 capacity. Lake
continues to review alternatives including a full off-grid solution for Phase 1 built around solar and battery storage with
technical reviews ongoing at this time (ASX 23 August 2023).
Other project updates
While the development of Kachi is Lake’s top priority and key focus, the company is continuing its exploration work at
its three 100-percent owned projects, Olaroz, Cauchari and Paso de Jama. We continue to work with local
communities and authorities to obtain additional permits and plan to conduct further geophysics and hydraulic
conductivity testing in the coming months. Lake is also submitting a prospecting EIA at its pegmatite deposit at
Ancasti in Catamarca to begin early assessment of value and interested parties.
Advances are continuing towards future clean lithium production from Lake’s flagship Kachi Lithium Brine Project in
As previously announced, Lake received Expressions of Interest from The UK Export Finance (UKEF), the Export
Credit Agency (ECA) of the United Kingdom, (ASX 11 August 2021) and from Canada’s Export Credit Agency, EDC,
to potentially support approximately 70% of the total finance required for Lake’s Kachi Project (ASX 28 September
2021). These Expressions of Interest remain in place following the Kachi Project reset, and discussions with UKEF
Corporate and Financial
Catamarca Province.
Project Finance (Kachi)
and EDC are ongoing.
Cash position
Lake held cash of A$89,217,466 as at 30 June 2023 (in AUD, USD and Argentine Pesos) with no debt. The Company
is financed through to the Definitive Feasibility Studies (DFS) but may need to issue capital or get off-take partners
deposits for the Kachi project in addition to the Expressions of Interest.
Lake Resources NL
Directors' report
For the year ended 30 June 2023
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 strengthened its management and operations team during the year, building its U.S. based headquarters in
Houston, Texas to take advantage of relevant expertise based there for the oil and gas industry. This included the
appointments of David Dickson as Managing Director and Chief Executive Officer on 15 September 2022; Scott
Munro as Senior Vice President (SVP) of Technology, Strategy and Risk on 18 October 2022; Ms. Karen Greene as
SVP, Investor Relations and Communications on 7 November 2022; Mr. John Freeman as Chief Legal Officer and
General Counsel on 1 January 2023; and Ms. Gentry Brann as Chief People and Administration Officer on 2
February 2023. Additionally, Lake strengthened its presence in Argentina with the appointment of Ms. Amalia Saenz,
formerly a Lake board member, as SVP, Corporate Affairs and Country Manager of Argentina. Ms. Saenz resigned
from her position as non-executive director on 1 February 2023 to assume this role on the Lake management team.
To better ensure the successful development of Kachi, and further develop the future opportunities of Cauchari,
Olaroz and Paso de Jama, Lake expanded its operating team significantly, adding technical, procurement, project,
hydrogeology, drilling and engineering experts,
this next stage of
development. Strategic and structural organizational changes were put in place to optimize the productivity of this
team. These changes included the division of the role of operational oversight into two main areas of responsibility: 1)
Process Plant Development and Operations; and 2) Field Development and Evaluation. Guatam Parimoo, previously
the Chief Operating Officer left the company (ASX 13 January 2023).
to oversee the technical requirements of
Other appointments made during the financial year included the appointment of Mr. Mark Anning as Head of Legal,
Australia, and Company Secretary (ASX 5 January 2023) and Ms. Lindsay Bourg as Chief Accounting Officer (ASX 3
July 2023).
In addition to the transition of Ms. Saenz from non-executive board member to assuming her role on the Lake
management team, Lake’s board of directors has undergone other changes during this financial year. Dr. Nicholas
Lindsay retired as a director of the Company on 28 November 2022.
Enhancements to the board, to strengthen governance and oversight, included the appointments of Mr. Howard
Atkins and Dr. Cheemin Bo-Linn on 5 December 2022 and Ms. Ana Chapman on 1 January 2023. Mr. Stu Crow
transitioned from his role as Executive Chairman to the role of non-executive chairman of the Lake board on 5
January 2023.
Matters subsequent to the end of the financial year
No other matter or circumstance has arisen since 30 June 2023 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.
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Lake Resources NL
Directors' report
For the year ended 30 June 2023
Likely developments and expected results of operations
Lake aspires to become a growing contributor to the energy transition by producing high purity lithium, operating
sustainably and improving lives. The development of Lake’s flagship Kachi project will continue to be the key area of
focus as the company endeavors to fulfil this vision.
Lake expects to complete the Phase 1 definitive feasibility study (DFS) in December 2023 for the Kachi project,
followed by the Environmental Impact Assessment (EIA) in the first quarter of 2024. Once the EIA is submitted, the
process to obtain construction permits officially begins. This process is expected to take up to 12 months. During this
time, Lake will seek to finalize structured offtake contracts and secure project financing with the UK and Canada
Export Credit Agencies, and potentially other parties.
Material Business Risks
Our exploration and mining operations will be subject to the normal risks of mining and any revenues will be subject
to numerous factors beyond our control. The material business risks that may affect us are summarised below.
Future Capital Raisings and Financial Risk
Our ongoing activities may require substantial further financing, additional to prior capital raisings. We will also
require additional funding to bring the Kachi Project into commercial production. Any additional equity financing may
be dilutive to shareholders and may be undertaken at prices lower than the current market price. Debt financing, if
available, may involve restrictive covenants which could limit our operations and business strategy. Although we
believe that additional capital can be obtained, no assurances can be made that appropriate capital or funding, if and
when needed, will be available on terms favourable to us or at all. If we are unable to obtain additional financing as
needed, we may be required to reduce, delay or suspend our operations which could have a material adverse effect
on our activities and could affect our ability to continue as a going concern. Additionally, if the level of operating
expenditure required is higher than expected, our financial position may be adversely affected. We may also
experience unexpected shortages or increases in the costs of consumables, spare parts, plant and equipment.
Exploration Risk
Our success 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 our tenements and
maintaining all consents and approvals necessary for the conduct of our exploration activities. Exploration on our
existing tenements may be unsuccessful, resulting in a reduction in the value of those tenements, diminution in our
cash reserves and possible relinquishment of the tenements. Our exploration costs 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,
from these estimates and
assumptions.
the actual costs may materially differ
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 our viability.
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LAKE RESOURCES ANNUAL REPORT 2023 Lake Resources NL
Directors' report
For the year ended 30 June 2023
Likely developments and expected results of operations
Lake aspires to become a growing contributor to the energy transition by producing high purity lithium, operating
sustainably and improving lives. The development of Lake’s flagship Kachi project will continue to be the key area of
focus as the company endeavors to fulfil this vision.
Lake expects to complete the Phase 1 definitive feasibility study (DFS) in December 2023 for the Kachi project,
followed by the Environmental Impact Assessment (EIA) in the first quarter of 2024. Once the EIA is submitted, the
process to obtain construction permits officially begins. This process is expected to take up to 12 months. During this
time, Lake will seek to finalize structured offtake contracts and secure project financing with the UK and Canada
Export Credit Agencies, and potentially other parties.
Material Business Risks
Future Capital Raisings and Financial Risk
Our ongoing activities may require substantial further financing, additional to prior capital raisings. We will also
require additional funding to bring the Kachi Project into commercial production. Any additional equity financing may
be dilutive to shareholders and may be undertaken at prices lower than the current market price. Debt financing, if
available, may involve restrictive covenants which could limit our operations and business strategy. Although we
believe that additional capital can be obtained, no assurances can be made that appropriate capital or funding, if and
when needed, will be available on terms favourable to us or at all. If we are unable to obtain additional financing as
needed, we may be required to reduce, delay or suspend our operations which could have a material adverse effect
on our activities and could affect our ability to continue as a going concern. Additionally, if the level of operating
expenditure required is higher than expected, our financial position may be adversely affected. We may also
experience unexpected shortages or increases in the costs of consumables, spare parts, plant and equipment.
Exploration Risk
Our success 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 our tenements and
maintaining all consents and approvals necessary for the conduct of our exploration activities. Exploration on our
existing tenements may be unsuccessful, resulting in a reduction in the value of those tenements, diminution in our
cash reserves and possible relinquishment of the tenements. Our exploration costs 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 our viability.
Lake Resources NL
Directors' report
For the year ended 30 June 2023
Material Business Risks (continued)
Feasibility and Development Risks
We may not always be able to exploit successful discoveries which may be made in areas in which we have 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 discretion by such authorities. It may or may not be
possible for such conditions to be satisfied. Further, the decision to proceed with further exploitation may require
participation of other companies whose interests and objectives may not be the same as ours. There is a complex,
multidisciplinary process underway to complete a feasibility study on the Kachi project to support future development.
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.
Our exploration and mining operations will be subject to the normal risks of mining and any revenues will be subject
to numerous factors beyond our control. The material business risks that may affect us are summarised below.
Regulatory Risk
Our operations are subject to various laws and plans in the jurisdictions in which we work, including those relating to
mining, prospecting, development permit and licence requirements,
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 we will be successful in obtaining such authorisations or maintaining such authorisations
in full force and effect without modification or revocation.
industrial relations, environment,
To the extent such approvals are required and not obtained or maintained in a timely manner or at all, our operations
may be curtailed or prohibited from continuing or proceeding with production and exploration. Our business and
results of operations could be adversely affected if applications lodged for exploration licences are not granted.
Maintenance of our mining and exploration tenements are subject to compliance with certain ongoing and periodic
conditions. Our inability to meet those conditions may adversely affect our operations, financial position and/or
performance.
Occupational Health and Safety
Given our exploration activities (and especially if we achieve exploration success leading to mining activities), we will
face the risk of workplace injuries which may result in workers’ compensation claims, related claims under applicable
law and potential occupational health and safety prosecutions. Further, the production processes used in conducting
any future mining activities can be dangerous. We have, and intend 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
We have limited operating history on which we can base an evaluation of our future prospects. If our business model
does not prove to be profitable, investors may lose their investment. Our historical financial information is of limited
value because of our lack of operating history and the emerging nature of our business. Our prospects 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.
6
7
1919
Lake Resources NL
Directors' report
For the year ended 30 June 2023
Material Business Risks (continued)
Key Personnel
In formulating our exploration programs, feasibility studies and development strategies, we rely to a significant extent
upon the experience and expertise of our current management. Many of our key personnel are important to attaining
our business goals. One or more of these key employees could leave their employment, and this may adversely
affect our ability to conduct our business and, accordingly, affect our financial performance and our share price.
is important to our success. The number of persons skilled in the
Recruiting and retaining qualified personnel
exploration and development of mining properties is limited and competition for such persons is strong.
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 our future plans and ultimately our 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
laws and regulations. We are unable to predict the effect of additional environmental
Our operations and activities are subject to the environmental laws and regulations in the jurisdictions in which we
work. As with most exploration projects and mining operations, our operations and activities are expected to have an
impact on the environment, particularly if advanced exploration or mine development proceeds. We attempt to
conduct our operations and activities to the highest standards of environmental obligation, including compliance with
all environmental
laws and
regulations which may be adopted in the future, including whether any such laws or regulations would materially
increase our cost of doing business or affect our operations in any area. There can be no assurances that new
environmental
laws, regulations or stricter enforcement policies, once implemented, will not oblige us to incur
significant expenses and undertake significant investments which could have a material adverse effect on our
business, financial condition and performance. We are subject to and compliant with all aspects of environmental
regulation of our exploration and mining activities. We are not aware of any environmental
law that is not being
complied with.
Availability of Equipment and Contractors
Prior to the COVID-19 pandemic and the 2022 Russian invasion of Ukraine, appropriate goods, materials, supplies
and 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 and the 2022 Russian invasion of Ukraine has only served
to exacerbate these issues. Consequently, there is a risk that we may not be able to source all the goods, materials,
supplies, equipment and contractors to perform required scopes of work to fulfil our 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 our activities.
20
8
LAKE RESOURCES ANNUAL REPORT 2023 Lake Resources NL
Directors' report
For the year ended 30 June 2023
Material Business Risks (continued)
Key Personnel
In formulating our exploration programs, feasibility studies and development strategies, we rely to a significant extent
upon the experience and expertise of our current management. Many of our key personnel are important to attaining
our business goals. One or more of these key employees could leave their employment, and this may adversely
affect our ability to conduct our business and, accordingly, affect our financial performance and our share price.
Recruiting and retaining qualified personnel
is important to our success. The number of persons skilled in the
exploration and development of mining properties is limited and competition for such persons is strong.
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 our future plans and ultimately our 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
Our operations and activities are subject to the environmental laws and regulations in the jurisdictions in which we
work. As with most exploration projects and mining operations, our operations and activities are expected to have an
impact on the environment, particularly if advanced exploration or mine development proceeds. We attempt to
conduct our operations and activities to the highest standards of environmental obligation, including compliance with
all environmental
laws and regulations. We are 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 our cost of doing business or affect our operations in any area. There can be no assurances that new
environmental
laws, regulations or stricter enforcement policies, once implemented, will not oblige us to incur
significant expenses and undertake significant investments which could have a material adverse effect on our
business, financial condition and performance. We are subject to and compliant with all aspects of environmental
regulation of our exploration and mining activities. We are not aware of any environmental
law that is not being
complied with.
Availability of Equipment and Contractors
Prior to the COVID-19 pandemic and the 2022 Russian invasion of Ukraine, appropriate goods, materials, supplies
and 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 and the 2022 Russian invasion of Ukraine has only served
to exacerbate these issues. Consequently, there is a risk that we may not be able to source all the goods, materials,
supplies, equipment and contractors to perform required scopes of work to fulfil our 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 our activities.
Lake Resources NL
Directors' report
For the year ended 30 June 2023
Material Business Risks (continued)
Climate Change Risk
Our operations and activities 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 us and our profitability. While we will endeavour to manage
these risks and limit any consequential impacts, there can be no guarantee that we will not be impacted by these
occurrences. Climate change may also cause certain physical and environmental risks that we cannot predict,
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 we operate.
Macro-Economic Risks
Although the world has emerged from the COVID-19 pandemic, global supply chains constraints, labour unavailability
and equipment shortages are still material risks to our operations. Supply chain constraints continue to be
exacerbated because of the 2022 Russian invasion of Ukraine.
items are being seen across
Hyperinflationary pressures in Argentina for appropriately skilled labour and capital
many industries, including mining. Current domestic and international
inflation is at historic levels, resulting in
persisting elevated interest rates globally. These conditions could have material adverse impact to our cost of doing
business and financial performance.
Argentina Political Risk
Our operations can be affected by changing political, regulatory and economic environments in the countries in which
we operate. Our exploration activities are entirely focused in Argentina, which will undergo elections in 2023, the
result of which could materially change the business and financial climate of the country. It is possible that adverse
election results could materially impact our ability to, for example, maintain our tenements, obtain and maintain
permits, negotiate with the government acceptable fiscal terms to support any debt-financing, and/or exportation of
capital, any of which, if realised, could impact our financial performance and ability to develop our projects.
Argentina Financial Risks
Argentina, the jurisdiction in which we focus our operations, maintains capital controls which have the effect of
restricting our access to foreign exchange markets and repatriation of profits. These measures have been
implemented and maintained sporadically in Argentina for multiple decades with the most recent implementation
occurring in 2019. These controls restrict our ability to convert Argentinian Pesos into U.S. Dollars or other currency
and may restrict our ability in the future to export from Argentina profits we earn from our operations. Argentina
occasionally modifies its capital controls frameworks, any changes to which, could have a material negative impact
on our future operations. For example, capital controls may impact our ability to pay for imports into Argentina in U.S.
Dollars or other hard currency. Additionally, our lenders may restrict our ability to use a portion of debt funds for
in-country operations. Argentina also maintains a robust
import program which restricts importation of certain
products we may need from the international market. Compliance with Argentina’s import restrictions often results in
delays and the need to attempt to source needed products locally, either of which could cause delays to our
operations.
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Lake Resources NL
Directors' report
For the year ended 30 June 2023
Information on directors
Name
Title
Experience and expertise
Mr. Stuart Crow
Executive Chairman (to 5 January 2023), Non-Executive Director (from 5
January 2023).
Mr. Crow has 37 year’s experience in financial services, corporate finance,
investor relations, international markets, stock broking and critical minerals
supply chains.
He is passionate about assisting emerging listed companies to attract
investors and capital. He has owned and operated his own businesses in
financial services and served on a number of company boards for over
fifteen years with mineral exploration companies operating in Australia,
Africa and in North and South America.
Other current Directorships
Non-Executive Chairman Ricca Resources Limited (unlisted)
Non-Executive Director Todd River Resources Ltd (ASX:TRT)
Non-Executive Director Pulsar Lithium (TSX.V)
Former Directorships (last 3 years)
Senior Non-Executive Director Atlantic Lithium Limited (AIM & ASX)
Name
Title
Experience and expertise
Mr. David Dickson (appointed 15 September 2022)
Managing Director and CEO
Mr. Dickson was appointed Managing Director and CEO of Lake
Resources in September 2022. He is an industry leader with over 30 years’
experience in process technology, engineering, construction and EPC cost
management, across the energy sector. He has a proven track record in
delivering multi-billion-dollar resource projects. Mr. Dickson spent over
seven years as CEO of global engineering and construction firm
McDermott International, building a strong leadership team that steered the
company into profitable new markets. He ultimately grew the business to
over 30,000 employees across 54 international markets.
Prior
to McDermott he was President of Technip USA, overseeing
marketing and operations in North, Central, and South America. Mr.
Dickson is a current member of the World Hydrogen Council and serves on
the Advisory Board of private equity firm, Quantum Energy Partners, a
leading global provider of private capital to the responsibly sourced energy
and energy transition and decarbonization sectors. Additionally, he has
served as Executive Advisor to strategic investment firm, The Chatterjee
Group and is a former Board member of the U.S. National Safety Council.
Other current Directorships
Former Directorships (last 3 years)
None
None
22
10
LAKE RESOURCES ANNUAL REPORT 2023 Lake Resources NL
Directors' report
For the year ended 30 June 2023
Information on directors
Name
Title
Executive Chairman (to 5 January 2023), Non-Executive Director (from 5
Experience and expertise
Mr. Crow has 37 year’s experience in financial services, corporate finance,
investor relations, international markets, stock broking and critical minerals
Mr. Stuart Crow
January 2023).
supply chains.
He is passionate about assisting emerging listed companies to attract
investors and capital. He has owned and operated his own businesses in
financial services and served on a number of company boards for over
fifteen years with mineral exploration companies operating in Australia,
Africa and in North and South America.
Other current Directorships
Non-Executive Chairman Ricca Resources Limited (unlisted)
Non-Executive Director Todd River Resources Ltd (ASX:TRT)
Non-Executive Director Pulsar Lithium (TSX.V)
Name
Title
Experience and expertise
Mr. David Dickson (appointed 15 September 2022)
Managing Director and CEO
Mr. Dickson was appointed Managing Director and CEO of Lake
Resources in September 2022. He is an industry leader with over 30 years’
experience in process technology, engineering, construction and EPC cost
management, across the energy sector. He has a proven track record in
delivering multi-billion-dollar resource projects. Mr. Dickson spent over
seven years as CEO of global engineering and construction firm
McDermott International, building a strong leadership team that steered the
company into profitable new markets. He ultimately grew the business to
over 30,000 employees across 54 international markets.
Prior
to McDermott he was President of Technip USA, overseeing
marketing and operations in North, Central, and South America. Mr.
Dickson is a current member of the World Hydrogen Council and serves on
the Advisory Board of private equity firm, Quantum Energy Partners, a
leading global provider of private capital to the responsibly sourced energy
and energy transition and decarbonization sectors. Additionally, he has
served as Executive Advisor to strategic investment firm, The Chatterjee
Group and is a former Board member of the U.S. National Safety Council.
Other current Directorships
Former Directorships (last 3 years)
None
None
10
Lake Resources NL
Directors' report
For the year ended 30 June 2023
Information on directors (continued)
Name
Title
Experience and expertise
Dr. Robert Trzebski
Non-Executive Director
Dr. Trzebski
is an international mining executive bringing substantial
operational, commercial and technical experience in global mining markets
to Lake Resources. He has over 35 years’
leadership track record in
strategic advisory, project management and
mineral exploration,
technology innovation.
He is currently Director, International Business of Austmine and currently
leads large-scale industry collaboration projects in the space of
decarbonisation and electrification. In previous roles, he held executive
positions with key mining industry players, such as Rio Tinto, WMC, Inco,
Falconbridge, Schlumberger and Phelps Dodge, having worked across the
globe with a long track professional record in Argentina. Dr. Trzebski holds
a degree in Geology, PhD in Geophysics, Masters in Project Management
and is a fellow of
the Australian Institute of Mining and Metallurgy
(AusIMM). He is fluent in English, Spanish, French and German.
Former Directorships (last 3 years)
Senior Non-Executive Director Atlantic Lithium Limited (AIM & ASX)
Other current Directorships
Austral Gold (ASX: AGD)
Former Directorships (last 3 years)
None
Name
Title
Experience and expertise
Dr.Cheemin Bo-Linn (appointed 5 December 2022)
Non-Executive Director
Dr. Bo-Linn is an accomplished CEO, former Fortune 100 global operations
executive, and board director with over 20 years of governance expertise
at public companies and private organisations, across the Americas and
Europe. Her prior board leadership at public companies include Lead
Compensation,
Chair
Independent
Nominations/Governance, Sustainability, and Tech/Cybersecurity).
Director
Audit,
and
(of
Her industry operational and board experience includes lithium-ion energy
storage, energy, process, technology, manufacturing, and construction.
Other current Directorships
Former Directorships (last 3 years)
None
None
11
2323
Lake Resources NL
Directors' report
For the year ended 30 June 2023
Information on directors (continued)
Name
Title
Experience and expertise
Mr. Howard Atkins (appointed 5 December 2022)
Non-Executive Director
Mr. Atkins brings deep financial management, capital markets, transaction,
foreign exchange, and public company experience to the Lake Resources
Board. He has over 30 years of financial leadership experience, including
20 years serving as a CFO for organisations including Wells Fargo, New
York Life Insurance Company, and Midlantic Bank Corporation.
He has served on the boards of Occidental Petroleum, whose markets
included the US and South America; and Ingram Micro, a global
technology and logistics company also with operations in the US and South
America. He has served on the Human Resources, Audit, Finance, and
Technology Committees during his public board service.
Other current Directorships
Daktronics (Nasdaq:DAKT)
Former Directorships (last 3 years)
None
Name
Title
Experience and expertise
Ms. Ana Gomez Chapman (appointed 1 January 2023)
Non-Executive Director
Ms. Chapman is a financial services executive and board director with over
28 years of
investment management, capital markets and business
leadership experience. She has worked and lived across the U.S., Europe,
Latin America and Asia Pacific.
Ms. Chapman is a capital markets expert who has held senior roles at
institutional investment firms including Hamilton Lane, where she currently
serves as a Managing Director.
Other current Directorships
Former Directorships (last 3 years)
None
None
24
12
LAKE RESOURCES ANNUAL REPORT 2023 Lake Resources NL
Directors' report
For the year ended 30 June 2023
Information on directors (continued)
Name
Title
Experience and expertise
Mr. Howard Atkins (appointed 5 December 2022)
Non-Executive Director
Mr. Atkins brings deep financial management, capital markets, transaction,
foreign exchange, and public company experience to the Lake Resources
Board. He has over 30 years of financial leadership experience, including
20 years serving as a CFO for organisations including Wells Fargo, New
York Life Insurance Company, and Midlantic Bank Corporation.
He has served on the boards of Occidental Petroleum, whose markets
included the US and South America; and Ingram Micro, a global
technology and logistics company also with operations in the US and South
America. He has served on the Human Resources, Audit, Finance, and
Technology Committees during his public board service.
Ms. Ana Gomez Chapman (appointed 1 January 2023)
Non-Executive Director
Ms. Chapman is a financial services executive and board director with over
28 years of
investment management, capital markets and business
leadership experience. She has worked and lived across the U.S., Europe,
Latin America and Asia Pacific.
Ms. Chapman is a capital markets expert who has held senior roles at
institutional investment firms including Hamilton Lane, where she currently
serves as a Managing Director.
Other current Directorships
Daktronics (Nasdaq:DAKT)
Former Directorships (last 3 years)
None
Name
Title
Experience and expertise
Other current Directorships
Former Directorships (last 3 years)
None
None
Lake Resources NL
Directors' report
For the year ended 30 June 2023
Information on directors (continued)
Name
Title
Experience and expertise
Ms. Amalia Saenz (resigned 1 February 2023)
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. Ms. 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, experience working in a exploration and production operations in
a context of a mixture of cultures.
Other current Directorships
Former Directorships (last 3 years)
None
None
Name
Title
Experience and expertise
Dr. Nicholas Lindsay (resigned 28 November 2022)
Executive Technical Director (to 3 October 2022), Non-Executive Director
(from 3 October 2022, resigned 28 November 2022)
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
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.
12
13
2525
Lake Resources NL
Directors' report
For the year ended 30 June 2023
Company secretaries
The Company Secretary in office until 9 January 2023 was Mr. Peter Neilsen. Mr. Neilsen 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.
Mr. Mark Anning who was appointed on 9 January 2023 is a Chartered Secretary with 30 years’ experience in legal
and corporate practice. He specializes in corporate and commercial law, dispute resolution, risk management, and
corporate governance. He has practiced at Partner level in private practice, and in-house at CEO and Chair direct
report level for several ASX and NASDAQ listed companies. He is a Fellow of the Governance Institute of Australia
and is admitted to practice in all Commonwealth Courts and the Supreme Courts of Queensland and Victoria.
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:
Ordinary
Shares
Options
Performance
Rights
Performance
Shares
Restricted
Stock Unit
S. Crow (Non-Executive
Chairman)
D. Dickson (Managing
Director and Chief Executive
Officer)
N. Lindsay (Non-Executive
Director)
C. Bo-Linn (Non-Executive
Director)
H. Atkins (appointed 5
December 2022)
A. Gomez Chapman
(appointed 1 January 2023)
10,000,000
-
5,000,000
-
-
-
-
-
4,000,000
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
1,000,000
-
232,500
232,500
238,500
26
14
LAKE RESOURCES ANNUAL REPORT 2023 Lake Resources NL
Directors' report
For the year ended 30 June 2023
Company secretaries
The Company Secretary in office until 9 January 2023 was Mr. Peter Neilsen. Mr. Neilsen 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.
Mr. Mark Anning who was appointed on 9 January 2023 is a Chartered Secretary with 30 years’ experience in legal
and corporate practice. He specializes in corporate and commercial law, dispute resolution, risk management, and
corporate governance. He has practiced at Partner level in private practice, and in-house at CEO and Chair direct
report level for several ASX and NASDAQ listed companies. He is a Fellow of the Governance Institute of Australia
and is admitted to practice in all Commonwealth Courts and the Supreme Courts of Queensland and Victoria.
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 (Non-Executive
Chairman)
D. Dickson (Managing
Director and Chief Executive
Officer)
Director)
Director)
N. Lindsay (Non-Executive
C. Bo-Linn (Non-Executive
H. Atkins (appointed 5
December 2022)
A. Gomez Chapman
(appointed 1 January 2023)
Ordinary
Shares
10,000,000
Performance
Performance
Options
Rights
Shares
Restricted
Stock Unit
5,000,000
4,000,000
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
1,000,000
-
232,500
232,500
238,500
-
-
-
-
-
Lake Resources NL
Directors' report
For the year ended 30 June 2023
Meetings of Directors
The number of meetings of the Consolidated entity's Board of Directors held during the year ended 30 June 2023,
and the numbers of meetings attended by each Director were:
S. Crow3
D. Dickson4(appointed 15 September 2022)
N. Lindsay (resigned 28 November 2022)
R. Trzebski5
C. Bo-Linn6(appointed 5 December 2022)
H. Atkins7(appointed 5 December 2022)
A. Saenz (resigned 1 February 2023)
A. Gomez Chapman (appointed 1 January 23)
Board Meeting
Audit & Risk
Committee1
Nomination &
Governance
Committee
Compensation
Committee2
Held Attended Held Attended Held Attended Held Attended
5
4
3
5
2
2
3
2
5
4
3
5
2
2
3
2
1
1
1
1
3
3
1
3
1
1
1
1
3
3
1
3
-
-
-
5
5
-
-
5
-
-
-
5
5
-
-
5
1
1
1
3
2
2
1
-
1
1
1
3
2
2
1
-
“Held” represents the number of meetings held during the time the Director held office and was eligible to attend.
1
2
3
4
5
6
7
Audit Committee reconstituted as Audit & Risk Committee from 11 February 2023
Nomination & Remuneration Committee reconstituted as Compensation Committee from 11 February 2023
Executive Chair until 5 January 2023 and thereafter Non-Executive Chair, Chair of Nomination & Remuneration
Committee (now constituted as Compensation Committee) until 11 February 2023.
Managing Director and Chief Executive Officer
Chair of Audit Committee until 11 February 2023 (now constituted as Audit & Risk Committee)
Chair of Nomination & Governance Committee
Chair of Audit & Risk committee from 11 February 2023
14
15
2727
Lake Resources NL
Directors' report
For the year ended 30 June 2023
LETTER FROM COMPENSATION COMMITTEE CHAIR
Dear Shareholders,
On behalf of the Board and the Compensation Committee,
I am pleased to present the Remuneration Report for the
financial year to 30 June 2023 (FY23).
FY23 Significant events
Over the past year, we have taken significant actions to fortify our management team and board, recruiting a deep
bench of expertise and practical experience. The addition of this talent is mission critical for the realisation of our
flagship Kachi Lithium Brine Project (“Kachi” or the “Kachi Project”) and has brought a sharper lens and more defined
rigour to our strategic priorities and governance framework. As a result, the Company is well-positioned to deliver
results to our shareholders and key stakeholders.
In June 2023, we shared important updates to the Company’s strategy and production capacity targets, following
several months of technical evaluation and gap analysis of the Kachi Project. As a result of this assessment, we have
selected a new, phased approach to production that de-risks project execution, enhances plant productivity and
provides the fastest path to first lithium, which is now expected in 2027. Underpinning this phased approach to
production is the scale of our resource at Kachi, which has grown significantly since January 2023 across measured,
inferred and indicated categories. Per our most recent mineral resource update on 15 June 2023, our resource
appears to support a supply life of more than 25 years. Additionally, we have proven our process flow sheet, from
brine to battery-grade lithium carbonate, producing consistent high purity (99.8%) product with significantly less
environmental impact than traditional hard rock or evaporation pond methods.
The new strategy and recruitment of critical talent has occurred under the leadership of Mr. David Dickson, who was
appointed Managing Director and Chief Executive Officer in September 2022. Mr. Dickson brings extensive
international experience in the construction of large specialty chemical plants, particularly in remote locations, and
has successfully delivered multibillion dollar resource projects. Since joining the Company, Mr. Dickson has resolved
previously identified issues and forged a positive relationship with technology partner Lilac Solutions. He has also
strengthened executive and technical teams and led the comprehensive reassessment of the project to better
position the company for success and its potential to provide long-term value to shareholders.
28
16
LAKE RESOURCES ANNUAL REPORT 2023 Lake Resources NL
Directors' report
For the year ended 30 June 2023
LETTER FROM COMPENSATION COMMITTEE CHAIR (continued)
FY23 Significant events (continued)
During the year, we strengthened the capability, experience and independence of the Board with the appointment of
three US-based Non-Executive Directors: Ms. Ana Gomez Chapman, Dr. Cheemin Bo-Linn, and Mr. Howard Atkins.
These appointments bring greater diversity and expertise to the Board, broadening our skills around capital markets,
rare earth mining, sustainability, cybersecurity and financial management. Further details of our key management
personnel (KMP) are disclosed in Table 1. After gaining shareholder approval for an increase in aggregate fees
payable to Non-Executive Directors at
the
remuneration of Non-Executive Directors was amended with a view to attract and retain directors with the necessary
skills to achieve the Company’s strategic priorities. The changes include an increase to fees for services to the Board
and the relevant Board Committees in addition to the introduction of a grant of Restricted Stock Units. Details are set
out in the Non-Executive Director’s Remuneration section.
the Company’s 2022 Annual General Meeting of Shareholders,
To improve Lake Resource's alignment with corporate governance best practices, we have:
•
•
Improved Board composition to achieve a majority (four out of six) of independent directors;
Improved Board diversity with the appointment of new directors and strengthened the capabilities and experience
of the Board to drive our broader sustainability strategies;
• Restored separate CEO and Chairman roles, concluding the interim arrangement where roles were combined
•
following the departure of former CEO, Mr. Stephen Promnitz;
Established standalone Audit & Risk, Compensation, Nomination & Governance, and Finance committees. These
committees (with the exception of the Finance Committee) are chaired by an independent director and comprised
solely of independent Non-Executive Directors.
•
•
The Audit & Risk, Compensation, Nomination & Governance Committees are chaired by an
independent director and comprised solely of independent Non-Executive Directors.
The Finance Committee is chaired by an independent director and comprised of a majority
independent Non-Executive Directors.
Response to First Remuneration Strike (FY22)
At the November 2022 Annual General Meeting of Shareholders, a 34.82% vote against the Remuneration Report
was recorded. Lake Resources takes shareholder concerns regarding our Remuneration Framework seriously. We
have taken steps to improve both the Remuneration Framework for management and our governance procedures to
determine remuneration matters which have been outlined in Section 3 “Response to First Strike” and table 2 of the
audited Remuneration Report.
17
2929
Lake Resources NL
Directors' report
For the year ended 30 June 2023
LETTER FROM COMPENSATION COMMITTEE CHAIR (continued)
Beyond FY24
The Compensation Committee will continue to work with its independent advisers to further enhance the Executive
Remuneration Framework in FY24 in alignment with our Remuneration Strategy Principles and to ensure that
compensation serves to retain our key talent on the road to achieving the strategic and operational milestones
required to commence production by 2027. The Committee will establish ongoing benchmarking of executive pay to
assist with determining appropriate market competitive pay levels for executive KMP. Any changes to the framework
will ensure that KMP remuneration is tied to tangible stakeholder outcomes, including financial, non-financial and
operational goals, to enhance alignment with market and shareholder expectations.
Furthermore, the Company continues to take steps to position itself to deliver on the strategic and operational
milestones outlined in the updated strategy announced in June 2023. This includes transitioning the executive,
operational and technical leadership team to be primarily based in the US to allow the Company to have stronger
geographic access to the Kachi Project, improve opportunities for funding of the Kachi project and other strategic
priorities of Lake Resources and enhance supply chains in North America and Argentina. The Company will continue
to consider these matters when setting remuneration for its executive talent to ensure competitiveness in all relevant
markets.
As outlined above, the Compensation Committee takes the concerns of shareholders seriously and will continue to
meet with all relevant stakeholders going forward, including in circumstances where key elements of the Executive
Remuneration Framework are restructured.
Robert
Dr. Robert Trzebski
Chair, Lake Resources Compensation Committee
30
18
LAKE RESOURCES ANNUAL REPORT 2023 Lake Resources NL
Directors' report
For the year ended 30 June 2023
LETTER FROM COMPENSATION COMMITTEE CHAIR (continued)
Beyond FY24
The Compensation Committee will continue to work with its independent advisers to further enhance the Executive
Remuneration Framework in FY24 in alignment with our Remuneration Strategy Principles and to ensure that
compensation serves to retain our key talent on the road to achieving the strategic and operational milestones
required to commence production by 2027. The Committee will establish ongoing benchmarking of executive pay to
assist with determining appropriate market competitive pay levels for executive KMP. Any changes to the framework
will ensure that KMP remuneration is tied to tangible stakeholder outcomes, including financial, non-financial and
operational goals, to enhance alignment with market and shareholder expectations.
Furthermore, the Company continues to take steps to position itself to deliver on the strategic and operational
milestones outlined in the updated strategy announced in June 2023. This includes transitioning the executive,
operational and technical leadership team to be primarily based in the US to allow the Company to have stronger
geographic access to the Kachi Project, improve opportunities for funding of the Kachi project and other strategic
priorities of Lake Resources and enhance supply chains in North America and Argentina. The Company will continue
to consider these matters when setting remuneration for its executive talent to ensure competitiveness in all relevant
As outlined above, the Compensation Committee takes the concerns of shareholders seriously and will continue to
meet with all relevant stakeholders going forward, including in circumstances where key elements of the Executive
Remuneration Framework are restructured.
markets.
Robert
Dr. Robert Trzebski
Chair, Lake Resources Compensation Committee
Lake Resources NL
Directors' report
For the year ended 30 June 2023
Remuneration report (audited)
OVERVIEW OF THE REMUNERATION REPORT
The following pages describing the Remuneration Framework have been prepared in accordance with the
requirements of Section 300A of the Corporations Act 2001 and audited as required by Section 308(3C) of the
Corporations Act 2001.
1 Key takeaways from FY23 strategic update and KMP covered by the Remuneration Report
2 Remuneration Governance
3 Response To First Remuneration Strike
4 Executive Remuneration Framework
5 Non-Executive Director Remuneration
6 Statutory Remuneration Disclosures
7 Service Agreements
8 Share-Based Compensation
9 Related Party Transaction
18
3131
Lake Resources NL
Directors' report
For the year ended 30 June 2023
Remuneration report (audited) (continued)
OVERVIEW OF THE REMUNERATION REPORT (continued)
KMP Covered by Report
The Remuneration Report outlines the compensation paid to personnel who held Key Management Personnel
(KMP)* positions during FY23 comprising its Non-Executive Directors (“NED”), Managing Director / CEO (“MD /
CEO”), and Chief Financial Officer (“CFO”), a detailed list of which can be found in table 1 below.
Table 1: FY23 Key Management Personnel (KMP)
Name
NON-EXECUTIVE DIRECTORS
Stuart Crow(1)
Dr. Robert Trzebski
Dr. Cheemin Bo-Linn
Howard Atkins
Ana Gomez Chapman
Dr. Nicholas Lindsay(2)
Amalia Saenz
EXECUTIVE KMP
David Dickson
Peter Neilsen
Gautam Parimoo
Position
Term as KMP in FY23
Chair of the Board
Director
Director
Director
Director
Director
Director
Commenced 5 January 2023
Full year
Commenced 5 December 2022
Commenced 5 December 2022
Commenced 1 January 2023
Commenced 28 November 2022
Ceased 1 February 2023
Managing Director & CEO
Chief Financial Officer
Chief Operations Officer
Commenced 15 September 2022
Full year
Ceased on 9 January 2023
(1)
(2)
*
Mr. Stuart Crow assumed the position of Non-executive Chair of the Board on 5 January 2023 having previously served as
executive chair from 20 June 2022 to 5 January 2023.
Dr. Nicholas Lindsay ceased their position as Non-Executive Director as of 28 November 2022 having previously served as
Technical Director (executive KMP) until 3 October 2022.
Key Management Personnel (KMP) are identified based on the definitions of paragraph 9 of Accounting Standard
AASB 124 (“Key management personnel are those persons having authority and responsibility for planning,
directing and controlling the activities of the entity, directly or indirectly, including any director (whether executive
or otherwise) of that entity”).
32
20
LAKE RESOURCES ANNUAL REPORT 2023 Lake Resources NL
Directors' report
For the year ended 30 June 2023
Remuneration report (audited) (continued)
REMUNERATION GOVERNANCE
Remuneration governance has been strengthened to support the effective design and delivery of the Remuneration
Framework, to achieve alignment with shareholder interests. The below outlines the remuneration governance
structure to determine the remuneration of KMP and employees. During the current reporting period, the Company
engaged Willis Towers Watson (WTW) to assist with the development of the Remuneration Report. The Board is
satisfied that WTW did not provide Remuneration Recommendation as defined in Section 9B of the Corporations Act
2001.
Lake Resources NL
Directors' report
For the year ended 30 June 2023
Remuneration report (audited) (continued)
OVERVIEW OF THE REMUNERATION REPORT (continued)
KMP Covered by Report
The Remuneration Report outlines the compensation paid to personnel who held Key Management Personnel
(KMP)* positions during FY23 comprising its Non-Executive Directors (“NED”), Managing Director / CEO (“MD /
CEO”), and Chief Financial Officer (“CFO”), a detailed list of which can be found in table 1 below.
Table 1: FY23 Key Management Personnel (KMP)
Name
Position
Term as KMP in FY23
NON-EXECUTIVE DIRECTORS
Chair of the Board
Commenced 5 January 2023
Stuart Crow(1)
Dr. Robert Trzebski
Dr. Cheemin Bo-Linn
Howard Atkins
Ana Gomez Chapman
Dr. Nicholas Lindsay(2)
Amalia Saenz
EXECUTIVE KMP
David Dickson
Peter Neilsen
Gautam Parimoo
Director
Director
Director
Director
Director
Director
Full year
Commenced 5 December 2022
Commenced 5 December 2022
Commenced 1 January 2023
Commenced 28 November 2022
Ceased 1 February 2023
Managing Director & CEO
Chief Financial Officer
Chief Operations Officer
Commenced 15 September 2022
Full year
Ceased on 9 January 2023
(1)
(2)
*
Mr. Stuart Crow assumed the position of Non-executive Chair of the Board on 5 January 2023 having previously served as
executive chair from 20 June 2022 to 5 January 2023.
Dr. Nicholas Lindsay ceased their position as Non-Executive Director as of 28 November 2022 having previously served as
Technical Director (executive KMP) until 3 October 2022.
Key Management Personnel (KMP) are identified based on the definitions of paragraph 9 of Accounting Standard
AASB 124 (“Key management personnel are those persons having authority and responsibility for planning,
directing and controlling the activities of the entity, directly or indirectly, including any director (whether executive
or otherwise) of that entity”).
20
21
3333
Lake Resources NL
Directors' report
For the year ended 30 June 2023
Remuneration report (audited) (continued)
RESPONSE TO FIRST STRIKE
In response to the 34.82% vote against the Remuneration Report at the November 2022 Annual General Meeting of
Shareholders,
the Company has taken steps to address and mitigate shareholder concerns regarding the
Remuneration Framework, which are summarised in Table 2 below.
Table 2 : Feedback on Remuneration Report
Feedback
Response
• With the appointment of Mr. Dickson,
Quantum of pay
(Managing
Director/Chief
Operating Officer)
Lack of performance
hurdles
the Company has sought
to provide a
competitive remuneration package in the context of the Company’s alignment of
operations to serve North American supply chains and to provide stronger access to
the Kachi Project operations in Argentina. To do so the Company is expanding its
executive, operational and technical
leadership in the US. Accordingly, the Board
believes that remuneration structures should be more closely aligned with US
structures and levels while also being relevant
in Australia. The Compensation
Committee will continue to develop pay structures that strengthen the linkages
between incentives and corporate and individual performance, while ensuring pay is
appropriate and reasonable relative to competitors and peer companies.
•
• While some portions of the Company’s stock awards vest based on time, most
grants are based on achievement of specific performance hurdles set in alignment
with strategic and operational goals of the Kachi Project.
The incentive plans in place are currently being reviewed and will be updated to
improve linkage to the key performance milestones of
the Kachi Project going
forward.
• Details of
the KPIs used to assess KMP performance and awards under the
Company’s Short-Term Variable Remuneration Plan for the 2023 calendar year are
outlined in Table 6 of the Remuneration Report.
Use of sign-on awards •
The Compensation Committee acknowledges concerns about the use of sign-on
awards at Lake Resources, particularly as they vest in annual tranches and do not
have explicit performance conditions attached.
• As the sign-on awards were delivered entirely in equity (as either stock options or
restricted stock units), there is alignment of awards value with the share price and
shareholder outcomes. The Board believes these awards are needed to recruit the
best talent, are aligned with relevant market practices, and encourage substantial
and long-term ownership among newly recruited executives while also serving the
purpose of retaining key talent.
The Compensation Committee considers the use of sign-on awards appropriate due
to the Company’s business being in a critical development phase, with the awards
ultimate value being linked to the success of Lake Resource's key development
projects.
•
34
22
LAKE RESOURCES ANNUAL REPORT 2023 Lake Resources NL
Directors' report
For the year ended 30 June 2023
Remuneration report (audited) (continued)
RESPONSE TO FIRST STRIKE
In response to the 34.82% vote against the Remuneration Report at the November 2022 Annual General Meeting of
Shareholders,
the Company has taken steps to address and mitigate shareholder concerns regarding the
Remuneration Framework, which are summarised in Table 2 below.
Table 2 : Feedback on Remuneration Report
Feedback
Response
Quantum of pay
(Managing
Director/Chief
Operating Officer)
• With the appointment of Mr. Dickson,
the Company has sought
to provide a
competitive remuneration package in the context of the Company’s alignment of
operations to serve North American supply chains and to provide stronger access to
the Kachi Project operations in Argentina. To do so the Company is expanding its
executive, operational and technical
leadership in the US. Accordingly, the Board
believes that remuneration structures should be more closely aligned with US
structures and levels while also being relevant
in Australia. The Compensation
Committee will continue to develop pay structures that strengthen the linkages
between incentives and corporate and individual performance, while ensuring pay is
appropriate and reasonable relative to competitors and peer companies.
Lack of performance
• While some portions of the Company’s stock awards vest based on time, most
hurdles
grants are based on achievement of specific performance hurdles set in alignment
with strategic and operational goals of the Kachi Project.
•
The incentive plans in place are currently being reviewed and will be updated to
improve linkage to the key performance milestones of
the Kachi Project going
forward.
• Details of
the KPIs used to assess KMP performance and awards under the
Company’s Short-Term Variable Remuneration Plan for the 2023 calendar year are
outlined in Table 6 of the Remuneration Report.
Use of sign-on awards •
The Compensation Committee acknowledges concerns about the use of sign-on
awards at Lake Resources, particularly as they vest in annual tranches and do not
have explicit performance conditions attached.
• As the sign-on awards were delivered entirely in equity (as either stock options or
restricted stock units), there is alignment of awards value with the share price and
shareholder outcomes. The Board believes these awards are needed to recruit the
best talent, are aligned with relevant market practices, and encourage substantial
and long-term ownership among newly recruited executives while also serving the
purpose of retaining key talent.
•
The Compensation Committee considers the use of sign-on awards appropriate due
to the Company’s business being in a critical development phase, with the awards
ultimate value being linked to the success of Lake Resource's key development
projects.
Lake Resources NL
Directors' report
For the year ended 30 June 2023
Remuneration report (audited) (continued)
RESPONSE TO FIRST STRIKE (continued)
Table 2 : Feedback on Remuneration Report (continued)
Response
Feedback
•
Remuneration
Governance
The ASX Corporate Governance Principles and Recommendations note that best
practice is for companies to have separate Nomination & Governance and
Remuneration Committees; a step which we have taken to enhance the
independence and efficiency of Director nominations and pay governance.
The following improvements have been introduced to strengthen governance:
The Board have approved substantial share ownership guidelines for the Board,
KMP and senior executives that will take effect from January 2024;
Introduction of malus/clawback policy to govern the deferral, cancellation or
clawback of performance-based remuneration in the event of serious misconduct
or a material misstatement in the Company’s financial statements.
the Compensation Committee will
In the coming year,
further
enhancements to the Remuneration Framework to better align with governance best
practices and stakeholder expectations.
The Compensation Committee hired an independent,
third-party compensation
consultant to assist in establishing pay governance best practices and updating Lake
Resources’ remuneration practices and policies to better align with market practices,
stakeholder expectations and shareholder outcomes.
consider
-
-
•
•
The Compensation Committee has resolved to improve shareholder communication and will be undertaking proactive
outreach to our key shareholders. In the past year we have improved our engagement strategy to regularly consult
with key stakeholders. We have met with close to 200 institutional and retail shareholders or shareholder
representatives to discuss key strategic, operational, remuneration and governance matters. In the lead up to the
2023 annual general meeting of shareholders, we have engaged with key proxy advisors in the Australian market to
discuss remuneration matters, including the remuneration strike sustained at the 2022 annual general meeting of
shareholders, and the actions the Company is taking to address the issues cited by proxy advisors and investors.
22
23
3535
Lake Resources NL
Directors' report
For the year ended 30 June 2023
Remuneration report (audited) (continued)
EXECUTIVE REMUNERATION FRAMEWORK
Remuneration Strategy Principles
The Board’s policy is to remunerate KMP at reasonable and appropriate market rates for their time, commitment,
responsibilities and overall performance. The Board determines payments to the KMP and reviews their remuneration
annually. The review is based on an assessment of relevant market practice relative to the duties and accountabilities
of each individual and refers to the guiding principles for KMP Remuneration as adopted by the Board. The Lake
Resources team are transitioning to have a greater proportion of its executive, operational and technical leadership
team to be based in the US to provide greater geographical access to the Kachi Project, increasing opportunities for
funding and streamlining supply chain procedures within the Company. These matters and the resulting need to
recruit exceptional talent in the US remain a key consideration of the Board and Compensation Committee when
reviewing and determining compensation structures at Lake Resources.
36
24
LAKE RESOURCES ANNUAL REPORT 2023 Lake Resources NL
Directors' report
For the year ended 30 June 2023
Remuneration report (audited) (continued)
EXECUTIVE REMUNERATION FRAMEWORK
Remuneration Strategy Principles
The Board’s policy is to remunerate KMP at reasonable and appropriate market rates for their time, commitment,
responsibilities and overall performance. The Board determines payments to the KMP and reviews their remuneration
annually. The review is based on an assessment of relevant market practice relative to the duties and accountabilities
of each individual and refers to the guiding principles for KMP Remuneration as adopted by the Board. The Lake
Resources team are transitioning to have a greater proportion of its executive, operational and technical leadership
team to be based in the US to provide greater geographical access to the Kachi Project, increasing opportunities for
funding and streamlining supply chain procedures within the Company. These matters and the resulting need to
recruit exceptional talent in the US remain a key consideration of the Board and Compensation Committee when
reviewing and determining compensation structures at Lake Resources.
Lake Resources NL
Directors' report
For the year ended 30 June 2023
Remuneration report (audited) (continued)
EXECUTIVE REMUNERATION FRAMEWORK (continued)
Remuneration Framework
The Company aims to incentivise executives consistent with our Remuneration Strategy Principles with a specific
focus on retaining executive level talent in addition to considering the relevant executive’s position, responsibilities
and performance. The components of the Remuneration Framework are shown in Table 3.
Table 3: FY23 Remuneration Framework
Description
Purpose
Fixed Remuneration
Fixed Annual
Remuneration (FAR)
Base salary,
post-employment benefits
(superannuation for AUS
executives and 401 (k)
contributions for US
executives), and
non-monetary benefits.
To provide basic
remuneration for the
services of executive
KMP, consistent with
each role’s scope of
responsibility and the
individual’s background,
experience and
performance in addition to
retaining key talent that
are in the best position to
achieve strategic
milestones.
Performance-based Variable Components
Short-term Variable
Remuneration (STVR)
Long-term Incentive / Long-term
Variable Remuneration (LTI / LTVR)
Short-term incentive awards
recognise both business and
individual performance,
taking into consideration each
individual’s contributions and
behaviours over the year.
Short-term incentives are
discretionary and intended to
incentivise the achievement
of financial and operational
goals relative to the annual
business plan. A maximum
award is set for each KMP,
and payouts can range from
nil to 100% of the maximum
STVR based on performance.
The conditional grant of Company
shares.
To create clear alignment between
executive pay and achievement of
long-term business objectives, to retain
critical talent, and to create a clear link
between executive wealth and
long-term shareholder returns.
24
25
3737
Lake Resources NL
Directors' report
For the year ended 30 June 2023
Remuneration report (audited) (continued)
EXECUTIVE REMUNERATION FRAMEWORK (continued)
Remuneration Framework (continued)
Short-term Variable
Remuneration (STVR)
Table 3: FY23 Remuneration Framework (continued)
Fixed Remuneration
Fixed Annual
Remuneration (FAR)
FAR is generally reviewed
by the Board annually and
is intended to be market
competitive. The Board
believes it should be a
less prominent portion of
total pay than the
performance-based pay
components and will work
with their independent
advisors to review the
appropriate mix as part of
enhancements to the
Framework. For residents
of the US, fringe benefits
such as 401(k) matching
for the contributions by
the relevant personnel are
provided. Other benefits
to KMP are aligned with
the broader employee
population and are
designed to meet the
local regulations and
practices.
The STVR is awarded
through a mix of cash
(50%-100%) and shares
(0%-50%) deferred over
three-years, vesting in annual
tranches. Awards are
finalised based on
performance against
pre-defined performance
targets set by the Board.
Targets may include
operational targets relating to
development of the Kachi
project, financial targets and
individual behaviours that
contribute to the achievement
of the Company’s strategic
goals. Non-financial goals,
including addressing
sustainability, are reflected in
the individual targets of the
executive.
Our
Approach
Performance-based Variable Components
Long-term Incentive / Long-term
Variable Remuneration (LTI / LTVR)
Depending on the specific terms of
each LTI award and its recipient,
shares vest based on either
achievement of the Company’s
long-term performance or based on
continuous service (time-based
vesting).Metrics attached to the
performance-linked portion of the LTI /
LTVR are primarily linked to progress
towards operationalising Lake
Resources’ flagship Kachi project. The
targets for each executive are set
specific to their role in achieving key
milestones related to the development
of the Kachi project.
38
26
LAKE RESOURCES ANNUAL REPORT 2023 Lake Resources NL
Directors' report
For the year ended 30 June 2023
Remuneration report (audited) (continued)
EXECUTIVE REMUNERATION FRAMEWORK (continued)
Remuneration Framework (continued)
Table 3: FY23 Remuneration Framework (continued)
Fixed Remuneration
Fixed Annual
Remuneration (FAR)
FAR is generally reviewed
by the Board annually and
is intended to be market
competitive. The Board
believes it should be a
less prominent portion of
total pay than the
performance-based pay
components and will work
with their independent
advisors to review the
appropriate mix as part of
enhancements to the
Framework. For residents
of the US, fringe benefits
such as 401(k) matching
for the contributions by
the relevant personnel are
provided. Other benefits
to KMP are aligned with
the broader employee
population and are
designed to meet the
local regulations and
practices.
The STVR is awarded
through a mix of cash
(50%-100%) and shares
(0%-50%) deferred over
three-years, vesting in annual
tranches. Awards are
finalised based on
performance against
pre-defined performance
targets set by the Board.
Targets may include
operational targets relating to
development of the Kachi
project, financial targets and
individual behaviours that
contribute to the achievement
of the Company’s strategic
goals. Non-financial goals,
including addressing
sustainability, are reflected in
the individual targets of the
executive.
Our
Approach
Performance-based Variable Components
Short-term Variable
Remuneration (STVR)
Long-term Incentive / Long-term
Variable Remuneration (LTI / LTVR)
Depending on the specific terms of
each LTI award and its recipient,
shares vest based on either
achievement of the Company’s
long-term performance or based on
continuous service (time-based
vesting).Metrics attached to the
performance-linked portion of the LTI /
LTVR are primarily linked to progress
towards operationalising Lake
Resources’ flagship Kachi project. The
targets for each executive are set
specific to their role in achieving key
milestones related to the development
of the Kachi project.
Lake Resources NL
Directors' report
For the year ended 30 June 2023
Remuneration report (audited) (continued)
EXECUTIVE REMUNERATION FRAMEWORK (continued)
Maximum Remuneration Mix
The maximum total remuneration opportunities provided to executive KMP are reviewed on an annual basis with
reference to the Remuneration Strategy Principles and the market practices of relevant market competitors for the
applicable position and responsibilities. Figure 1 represents the maximum remuneration payable to executive KMP
based on the primary remuneration elements in their first year of appointment set to align with compensation
practices in relevant markets, including the US and to ensure retention of talent in critical functions required to
achieve strategic and operational goals.
Figure 1: Maximum Remuneration Mix for Incumbent Executive KMP
Managing Director
and Chief Executive
MD/CEO
Officer (USD):
(USD):
CFO (AUD; incentive plans for first year of service only)*:
At Risk (50%)
At Risk (20%)
*The CFO’s initial service agreement outlined incentive opportunity for the first year of service. In addition, the CFO’s
fixed remuneration has been increased to USD 500,000 as of 1 August 2022, to reflect the expanding roles and
responsibilities of the CFO position to achieve the new strategic goals to commence production by 2027 as outlined
in the project reset in addition to ensuring alignment with the US market.
In addition to the standard elements of remuneration for executive KMP, sign-on awards may be provided on a
case-by-case basis and is not a guaranteed element of the Company’s Remuneration Framework.
Fixed Annual Remuneration (FAR)
Fixed annual remuneration consists of base salary, superannuation, fringe benefits including 401(k) contributions and
other non-monetary benefits and is awarded to provide a basic retainer for KMP services to the Company consistent
with each role’s scope of responsibility and the individual’s background, experience and performance. The Board
generally reviews FAR on an annual basis to ensure alignment with the market and may make adjustments based on
the Company’s need and where a gap with the market is identified. Executives may receive FAR as cash or other
fringe benefits where it provides additional tax-effective benefits and performance incentives to the executive.
26
27
3939
Lake Resources NL
Directors' report
For the year ended 30 June 2023
Remuneration report (audited) (continued)
EXECUTIVE REMUNERATION FRAMEWORK (continued)
Fixed Annual Remuneration (FAR) (continued)
In FY23, base salary (excluding statutory superannuation, fringe benefits (401(k) contributions) and non-monetary
benefits) for Executive KMP during FY23 were set as follows:
Table 4: Details of Base Salary
KMP
Base salary
David Dickson
USD 1,000,000
Peter Neilsen
USD 500,000
Dr. Nicholas Lindsay AUD 300,000
USD 335,000
Gautam Parimoo
Transition of Performance Period
Other notes
Mr. Dickson is eligible for employer 401(k) contributions of up to
US $ 66,000 per annum. Mr Dickson did not make 401(k)
contributions during FY23.
During FY23, Mr. Neilsen’s base pay was increased from AUD
330,000 to USD 500,000 to reflect the roles and responsibilities of
the CFO within the organisation
Ceased employment on 28 November 2022
Ceased employment on 9 January 2023
In FY 2023 and prior years, the STVR was awarded based on a performance period aligned with the financial year
(July to June). However, from FY24, the STVR will run on a performance cycle based on the calendar year. As such,
the STVR for executive KMP will be based on performance period running from January to December going forward.
For all KMP where existing incentive plans are based on the financial year (July to June), awards will be pro-rated to
allow for transition to a performance period that runs over the calendar year.
40
28
LAKE RESOURCES ANNUAL REPORT 2023 Lake Resources NL
Directors' report
For the year ended 30 June 2023
Remuneration report (audited) (continued)
EXECUTIVE REMUNERATION FRAMEWORK (continued)
Fixed Annual Remuneration (FAR) (continued)
In FY23, base salary (excluding statutory superannuation, fringe benefits (401(k) contributions) and non-monetary
benefits) for Executive KMP during FY23 were set as follows:
Table 4: Details of Base Salary
KMP
Base salary
Other notes
David Dickson
USD 1,000,000
US $ 66,000 per annum. Mr Dickson did not make 401(k)
Mr. Dickson is eligible for employer 401(k) contributions of up to
contributions during FY23.
During FY23, Mr. Neilsen’s base pay was increased from AUD
Peter Neilsen
USD 500,000
330,000 to USD 500,000 to reflect the roles and responsibilities of
Dr. Nicholas Lindsay AUD 300,000
Gautam Parimoo
USD 335,000
Transition of Performance Period
the CFO within the organisation
Ceased employment on 28 November 2022
Ceased employment on 9 January 2023
In FY 2023 and prior years, the STVR was awarded based on a performance period aligned with the financial year
(July to June). However, from FY24, the STVR will run on a performance cycle based on the calendar year. As such,
the STVR for executive KMP will be based on performance period running from January to December going forward.
For all KMP where existing incentive plans are based on the financial year (July to June), awards will be pro-rated to
allow for transition to a performance period that runs over the calendar year.
Lake Resources NL
Directors' report
For the year ended 30 June 2023
Remuneration report (audited) (continued)
EXECUTIVE REMUNERATION FRAMEWORK (continued)
Short-term Variable Remuneration (STVR) Plan
Subject to the terms of their service contract, executive KMP are eligible for participation in the STVR Plan which is
awarded based on annual performance against defined performance objectives. Details of the STVR opportunity is
set for each executive as follows:
Table 5: Details of STVR Award
KMP
Delivery
(Cash/
Performance
Shares (PS))
Max award
Performance Metrics (Cash
Component)
Performance metrics
(deferred Performance
Shares Component)
D. Dickson
Cash: 100%
PS: 0%
USD 400,000
per annum
P. Neilsen
Cash: 33.34%
PS: 66.66%
AUD 65,000
(for first year
of service)(1)
N. Lindsay
Cash: 50% PS:
50%
G. Parimoo
Cash: 50% PS:
50%
AUD 60,000
(for first year
of service)(1)
AUD 60,000
(for first year
of service)(1)
The Board has set a number of KPIs to
be considered in determining the STVR
for Mr Dickson, which are outlined on
table 6. At the time of publishing the
Company has accrued for a 100% of
eligible award on pro-rata basis.
During the first year of employment, the
following targets were set:
• 40%: Delivering comprehensive
accounting information with quality
timely information in Argentina and at
head company level.
• 60%: Closing the debt financing for the
Company’s Kachi project.
Mr. Neilsen will be transitioning to a
performance period based on the
calendar year from July 2023 and new
KPIs have been set which are outlined
on table 6.
Delivery of a definitive feasibility study
(DFS) at the Company’s Kachi Project
and financing for the Project being
approved.
Delivery of a definitive feasibility study
(DFS) at the Company’s Kachi Project
and financing for the Project being
approved. The performance metric was
not achieved in FY 2023.
No Performance Shares
were awarded from the
STVR plan during FY23.
For details regarding
Performance Shares
granted in prior years
under the STVR that may
impact the remuneration of
executive KMP in coming
years, refer to share-based
compensation section of
the Remuneration Report
(1)
(2)
Max award represents the maximum value of STVR outlined in the applicable executive’s service agreement during
their first year of service from appointment.
For details regarding the status of performance shares granted to executive KMP under the STVR including information
regarding achievement of performance metrics, please refer to Table 7.
28
29
4141
Lake Resources NL
Directors' report
For the year ended 30 June 2023
Remuneration report (audited) (continued)
EXECUTIVE REMUNERATION FRAMEWORK (continued)
Short-term Variable Remuneration (STVR) Plan (continued)
KPIs for Executive KMP (Calendar Year 2023)
Due to the transition to a calendar-based performance period (rather than the financial year), the Board has approved
the below KPIs for assessing the performance of executive KMP (CEO and CFO) during the 2023 calendar year. All
incentive awards are subject to discretionary adjustments that are to be approved by the Board.
Table 6: KPI for Executive KMP
Metric
Safety
Details
• Complete review of current Health, Safety and
Environmental processes, systems and practices
• Implement consistent policies and establish
management of change process and system for
project site and global operations
People
Financial
Operations
• Build experienced management team to cover key
operations and functional areas
• Develop 12-month budget and cash flow forecast
• Maintain cash balance of USD 35 million
• Complete operational review
• Submit Phase 1 definitive feasibility study (DFS) in
2023
Additional targets
Weighting
• Target zero fatalities
10%
• Recruit, onboard and
develop executive committee
that works together as a team
20%
30%
40%
FY23 STVR Performance Shares
In FY23, Performance Shares were not granted to any KMP as a part of their STVR award. However, for FY22,
pursuant to resolution 12 dated 25 January 2022 (and issued 24 February 2022), approval to issue Performance
Shares was granted for the CFO (Mr. Peter Neilsen) and Executive Technical Director (Dr. Nicholas Lindsay), which
may impact the pay of executive KMP in future years. A summary is provided in Table 7 below.
42
30
LAKE RESOURCES ANNUAL REPORT 2023 Lake Resources NL
Directors' report
For the year ended 30 June 2023
Remuneration report (audited) (continued)
EXECUTIVE REMUNERATION FRAMEWORK (continued)
Short-term Variable Remuneration (STVR) Plan (continued)
KPIs for Executive KMP (Calendar Year 2023)
Due to the transition to a calendar-based performance period (rather than the financial year), the Board has approved
the below KPIs for assessing the performance of executive KMP (CEO and CFO) during the 2023 calendar year. All
incentive awards are subject to discretionary adjustments that are to be approved by the Board.
Table 6: KPI for Executive KMP
Metric
Details
Additional targets
Weighting
Safety
• Implement consistent policies and establish
• Target zero fatalities
10%
• Complete review of current Health, Safety and
Environmental processes, systems and practices
management of change process and system for
project site and global operations
• Build experienced management team to cover key
operations and functional areas
• Develop 12-month budget and cash flow forecast
• Maintain cash balance of USD 35 million
• Complete operational review
People
Financial
Operations
• Submit Phase 1 definitive feasibility study (DFS) in
2023
FY23 STVR Performance Shares
• Recruit, onboard and
develop executive committee
that works together as a team
20%
30%
40%
In FY23, Performance Shares were not granted to any KMP as a part of their STVR award. However, for FY22,
pursuant to resolution 12 dated 25 January 2022 (and issued 24 February 2022), approval to issue Performance
Shares was granted for the CFO (Mr. Peter Neilsen) and Executive Technical Director (Dr. Nicholas Lindsay), which
may impact the pay of executive KMP in future years. A summary is provided in Table 7 below.
Lake Resources NL
Directors' report
For the year ended 30 June 2023
Remuneration report (audited) (continued)
EXECUTIVE REMUNERATION FRAMEWORK (continued)
Short-term Variable Remuneration (STVR) Plan (continued)
FY23 STVR Performance Shares (continued)
Table 7: Details of Performance Shares Granted under STVR Award
Recipient /
Performance
Share
Max number of
ordinary
shares that
Performance
Shares can be
converted to
P. Neilsen
(Class A)
123,809
Dr. N.
Lindsay
(Class E)
92,343
Performance
Measure
Maximum
Weighting
Grant
Date
Measurement
Period
Expiry
Date
Status
Delivering
comprehensive
accounting
information with
quality timely
information in
Argentina and
head company
levels
Closing the debt
financing for the
Company’s Kachi
project
Commencement
of exploration and
testing of brines
from at least one
of the Company’s
other projects
besides the Kachi
project
40%
22 Feb
2022
12 Jul 2021 –
12 Oct 2022
12 Dec
2022
Expired
60%
22 Feb
2022
12 Jul 2021 –
12 Oct 2022
12 Dec
2022
Expired
100%
22 Feb
2022
1 Jan 2021 –
1 April 2022
1 Jun
2022
Vested
Paid out at
a value of
A$35,911
during
FY22
(1)
Dr. Nicholas Lindsay retired from the Company as of 28 November 2022, however achieved the relevant performance
measure for the Class E Performance Shares during his tenure. However, due to administrative matters, the relevant Class E
Performance Shares were not converted into ordinary shares of the Company. As such, the Company issued 21,837 shares in
lieu of
the 2022 Annual General Meeting of
Shareholders.
the Class E Performance Shares after securing shareholder approval at
The Compensation Committee will assess whether the relevant Executive KMP satisfy the performance measures set
for the relevant STVR awards within the relevant assessment periods. No grants of Performance Shares that have an
impact on the remuneration of Mr. Dickson for the current and future financial years were made.
30
31
4343
Lake Resources NL
Directors' report
For the year ended 30 June 2023
Remuneration report (audited) (continued)
EXECUTIVE REMUNERATION FRAMEWORK (continued)
Short-term Variable Remuneration (STVR) Plan (continued)
Calculation Method for Conversion of Performance Shares Awarded Under STVR
The number of shares to be granted to the executive KMP who are participants in the STVR and are eligible for
Performance Shares will be calculated using the following formulae:
Table 8: STVR Award Calculation Method
P. Neilsen
(Target PS x Max STVR x Performance
Achieved %)/ VWAP
N. Lindsay
(Base Pay x Performance Achieved %)/
VWAP
Number of shares
converted =
Where:
Target PS (Performance shares)1=2/3 of STVR awarded in Performance Shares
Base pay1= the max amount payable in Performance Shares under the STVR (A$32,320), which is 50% of the
STVR opportunity
Performance achieved %1= Percentage assessed by the Company’s Compensation Committee according to
assessment of the Recipient's achievement of the relevant performance measures over the performance period up
to the relevant maximum weighting outlined in table 5
VWAP:1the 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 Performance Share.
For Performance Shares issues to Dr. Lindsay, the maximum number of ordinary shares assumes that the VWAP
Price under the Lindsay Conversion Formula set out above is A$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 of the January 2022 general meeting of shareholders will be issued.
44
32
LAKE RESOURCES ANNUAL REPORT 2023 Lake Resources NL
Directors' report
For the year ended 30 June 2023
Remuneration report (audited) (continued)
EXECUTIVE REMUNERATION FRAMEWORK (continued)
Short-term Variable Remuneration (STVR) Plan (continued)
Calculation Method for Conversion of Performance Shares Awarded Under STVR
The number of shares to be granted to the executive KMP who are participants in the STVR and are eligible for
Performance Shares will be calculated using the following formulae:
Table 8: STVR Award Calculation Method
Number of shares
(Target PS x Max STVR x Performance
(Base Pay x Performance Achieved %)/
P. Neilsen
Achieved %)/ VWAP
N. Lindsay
VWAP
converted =
Where:
STVR opportunity
Target PS (Performance shares)1=2/3 of STVR awarded in Performance Shares
Base pay1= the max amount payable in Performance Shares under the STVR (A$32,320), which is 50% of the
Performance achieved %1= Percentage assessed by the Company’s Compensation Committee according to
assessment of the Recipient's achievement of the relevant performance measures over the performance period up
to the relevant maximum weighting outlined in table 5
VWAP:1the 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 Performance Share.
For Performance Shares issues to Dr. Lindsay, the maximum number of ordinary shares assumes that the VWAP
Price under the Lindsay Conversion Formula set out above is A$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 of the January 2022 general meeting of shareholders will be issued.
Lake Resources NL
Directors' report
For the year ended 30 June 2023
Remuneration report (audited) (continued)
EXECUTIVE REMUNERATION FRAMEWORK (continued)
Long-term Variable Remuneration (LTVR) Plan
Subject to the terms of their service contract, executive KMP are eligible for the LTVR Plan as an incentive to
participate in the Company’s growth that is directly aligned with the creation of shareholder value.
Table 9: Details of LTVR Award
KMP
D. Dickson
P. Neilsen
N. Lindsay
G. Parimoo
Delivery
Max award
Performance metrics
(Performance Shares)
• Performance Shares
• Delivered in tranches
over three years subject
to achievement of the
relevant performance
hurdles
USD 600,000 per annum
AUD 65,000 per annum for three
years after commencement
Up to 40% of the annual value of
Base Pay and Benefits at time of
commencement
Up to 40% of the annual value of
Base Pay and Benefits at time of
commencement
For details regarding
Performance Shares granted in
the current and prior years under
the LTVR that may impact the
remuneration of executive KMP
in coming years, refer to table 10
Mr. Dickson’s LTVR is awarded in performance shares based on achievement of scorecard KPIs that are updated on
an annual basis and vest in equal tranches over three-years. The scorecard KPI for the current calendar year are
based on the metrics outlined in Table 6.
Performance Shares granted to Mr. Neilsen and Dr. Lindsay under the LTVR, and the relevant performance hurdles
attached to each tranche are outlined below. The status of these awards and the achievement of the relevant hurdles
have been outlined under “performance shares” in the Share-Based Payments section of this report.
32
33
4545
Lake Resources NL
Directors' report
For the year ended 30 June 2023
Remuneration report (audited) (continued)
EXECUTIVE REMUNERATION FRAMEWORK (continued)
Long-term Variable Remuneration (LTVR) Plan (continued)
Table 10: Details of Performance Shares Granted under LTVR Award
Performance
Share
Max number
of ordinary
shares that
Performance
Shares can
be converted
to
P. Neilsen LTVR
Tranche 1
(Class B)
139,285
P. Neilsen LTVR
Tranche 2
(Class C)
92,343
P. Neilsen LTVR
Tranche 3
(Class D)
N. Lindsay
LTVR Tranche 1
(Class F)
N. Lindsay
LTVR Tranche 2
(Class G)
250,714
147,749
147,749
N. Lindsay
LTVR Tranche 3
(Class H)
73,874
Performance Measure
Max
Weight
Grant
Date
Measurement
Period
Expiry
Date
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,
reproduction 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
Delivery of the Kachi project into
production with appropriate reporting
mechanisms in place
The Company putting a project team
in place to build the Project DFS and
building the demonstration plant on
site
The Company closing the debt and
equity financing for the Company’s
Kachi project on terms satisfactory to
the Company
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
25%
22
Feb
2022
12 Jul 2021 –
12 Oct 2022
12
Mar
2023
30%
22
Feb
2022
12 Jul 2021 –
12 Jul 2023
12
Sep
2023
45%
40%
40%
20%
22
Feb
2022
22
Feb
2022
22
Feb
2022
22
Feb
2022
12 Jul 2021 –
12 Jul 2024
12
Sep
2024
1 Jan 2021 –
1 Apr 2022
1 Jun
2022
1 Jan 2021 –
1 Jan 2023
1 Mar
2023
1 Jan 2021 –
1 Jan 2024
1 Mar
2024
46
34
LAKE RESOURCES ANNUAL REPORT 2023 Lake Resources NL
Directors' report
For the year ended 30 June 2023
Remuneration report (audited) (continued)
EXECUTIVE REMUNERATION FRAMEWORK (continued)
Long-term Variable Remuneration (LTVR) Plan (continued)
Table 10: Details of Performance Shares Granted under LTVR Award
Max number
of ordinary
shares that
Performance
Shares can
be converted
to
Performance
Share
Performance Measure
Max
Weight
Grant
Date
Measurement
Expiry
Period
Date
P. Neilsen LTVR
139,285
for the debt financiers and potential
25%
Tranche 1
(Class B)
22
Feb
2022
12 Jul 2021 –
12 Oct 2022
12
Mar
2023
Delivering and operating a
comprehensive reporting package
JV partners post close of the Kachi
project finance
Maintain and deliver accurate
reporting across all facets of the
business incorporating cash flows,
reproduction 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
P. Neilsen LTVR
Tranche 2
(Class C)
92,343
30%
22
Feb
2022
12 Jul 2021 –
12 Jul 2023
12
Sep
2023
P. Neilsen LTVR
Delivery of the Kachi project into
250,714
production with appropriate reporting
45%
Tranche 3
(Class D)
N. Lindsay
(Class F)
N. Lindsay
(Class G)
LTVR Tranche 1
147,749
LTVR Tranche 2
147,749
mechanisms in place
The Company putting a project team
in place to build the Project DFS and
building the demonstration plant on
site
The Company closing the debt and
equity financing for the Company’s
Kachi project on terms satisfactory to
the Company
The Company receiving approval for
the financing of an expansion case
40%
40%
20%
N. Lindsay
LTVR Tranche 3
(Class H)
73,874
being up to 50,000 tonnes per
annum lithium carbonate equivalent
total production at the Kachi project
22
Feb
2022
22
Feb
2022
22
Feb
2022
22
Feb
2022
12 Jul 2021 –
12 Jul 2024
12
Sep
2024
1 Jan 2021 –
1 Apr 2022
1 Jun
2022
1 Jan 2021 –
1 Jan 2023
1 Mar
2023
1 Jan 2021 –
1 Jan 2024
1 Mar
2024
34
Lake Resources NL
Directors' report
For the year ended 30 June 2023
Remuneration report (audited) (continued)
EXECUTIVE REMUNERATION FRAMEWORK (continued)
Long-term Variable Remuneration (LTVR) Plan (continued)
Calculation Method for Conversion of Performance Shares Awarded Under LTVR
The number of shares to be granted to the executive KMP who are participants in the LTVR and are eligible for
Performance Shares will be calculated using the formula in Table 11.
Table 11: LTVR Award Calculation Method
(Target PS x Max STVR x Performance Achieved %)/ VWAP
LTVR Calculation Method
Number of shares converted =
Where:
Base pay1= the max amount payable in Performance Shares under the LTVR (A$195,000 for Mr Neilsen’s Class
B, C and D Performance Shares; and AUD129,280.80 for Dr Lindsay’s Class F, G and H Performance Shares)
Performance achieved %1= Percentage assessed by the Company’s Compensation Committee according to
assessment of the Recipient's achievement of the relevant performance measures over the measure period up to
the relevant maximum weighting outlined in table 9
VWAP:1the 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 Performance Share.
For Performance Shares issues to Dr. Lindsay (class F, G and H Performance Shares), the maximum number of
ordinary shares assumes that the VWAP Price under the Lindsay Conversion Formula set out above is A$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 of the January 2022 general meeting of
shareholders will be issued.
Long- term Incentive Plan - Performance Rights
At the 2016 Annual General Meeting, the shareholders of Lake Resources 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 was awarded 5 million performance rights on 15 August 2019. These performance rights will vest in full
when the relevant performance measures have been satisfied, namely:
•
an investment partner signing an agreement to invest in the Kachi project in Catamarca (Investor)
At the time of reporting, Mr. Crow’s performance rights vesting condition has not been met.
35
4747
Lake Resources NL
Directors' report
For the year ended 30 June 2023
Remuneration report (audited) (continued)
EXECUTIVE REMUNERATION FRAMEWORK (continued)
Long- term Incentive Plan - Performance Rights (continued)
Mr. Promnitz (former Director) and Dr. Lindsay (former Director) were each awarded 5 million performance rights on
15 August 2019 and all performance rights have vested due to achievement of the relevant performance measures
as follows:
Table 12: Performance Rights on Issue
Recipient
Grant Date
N. Lindsay
15 Aug 2019
Number of
Rights
Granted
2,500,000
S. Promnitz
15 Aug 2019
2,500,000
N. Lindsay
15 Aug 2019
2,500,000
S. Promnitz
15 Aug 2019
2,500,000
Use of Other Remuneration Elements
Performance Measure
Performance
Outcome
Status
Completion of Pre-Feasibility
Study for the Kachi Project
Establishment of a Pilot Plant
on-site at Kachi Project in
Catamarca
Achieved
Shares issued
Achieved
Shares issued
Achieved
Shares issued
Achieved
Expired
To recruit top executive talent or to replace benefits or compensation forfeited when newly hired executives left their
previous employer to join Lake Resources, some newly hired executives are provided sign-on bonuses. To ensure
alignment with shareholders, these bonuses are typically made in the form of stock options or restricted stock units
and are designed to comply with all relevant ASX listing rules. The primary purpose of granting stock-based awards
(RSUs) is to provide an incentive to meet all critical project milestones and to ensure the value of the awards is based
on the Company’s share price in addition to ensuring retention of executives critical to the achievement of strategic
goals. Where stock awards are not performance based, the intention is for KMP to hold a certain amount of Company
stock to enhance interests with shareholders. Stock options have been granted due to their prevalence in the US and
to reflect our shift to expand our executive, operations and technical leadership in the US. Of the current executive
KMP, the following stock compensation has been provided as sign-on awards:
48
36
LAKE RESOURCES ANNUAL REPORT 2023 Lake Resources NL
Directors' report
For the year ended 30 June 2023
Remuneration report (audited) (continued)
EXECUTIVE REMUNERATION FRAMEWORK (continued)
Long- term Incentive Plan - Performance Rights (continued)
Mr. Promnitz (former Director) and Dr. Lindsay (former Director) were each awarded 5 million performance rights on
15 August 2019 and all performance rights have vested due to achievement of the relevant performance measures
as follows:
Table 12: Performance Rights on Issue
Recipient
Grant Date
Performance Measure
Performance
Outcome
Status
Number of
Rights
Granted
N. Lindsay
15 Aug 2019
2,500,000
S. Promnitz
15 Aug 2019
2,500,000
Completion of Pre-Feasibility
Study for the Kachi Project
Achieved
Shares issued
Achieved
Shares issued
N. Lindsay
15 Aug 2019
2,500,000
Establishment of a Pilot Plant
Achieved
Shares issued
S. Promnitz
15 Aug 2019
2,500,000
Catamarca
Achieved
Expired
on-site at Kachi Project in
Use of Other Remuneration Elements
To recruit top executive talent or to replace benefits or compensation forfeited when newly hired executives left their
previous employer to join Lake Resources, some newly hired executives are provided sign-on bonuses. To ensure
alignment with shareholders, these bonuses are typically made in the form of stock options or restricted stock units
and are designed to comply with all relevant ASX listing rules. The primary purpose of granting stock-based awards
(RSUs) is to provide an incentive to meet all critical project milestones and to ensure the value of the awards is based
on the Company’s share price in addition to ensuring retention of executives critical to the achievement of strategic
goals. Where stock awards are not performance based, the intention is for KMP to hold a certain amount of Company
stock to enhance interests with shareholders. Stock options have been granted due to their prevalence in the US and
to reflect our shift to expand our executive, operations and technical leadership in the US. Of the current executive
KMP, the following stock compensation has been provided as sign-on awards:
Lake Resources NL
Directors' report
For the year ended 30 June 2023
Remuneration report (audited) (continued)
EXECUTIVE REMUNERATION FRAMEWORK (continued)
Use of Other Remuneration Elements (continued)
Table 13: Other Remuneration Elements
2023 KMP
Commencement
date
Type of
Grant
Number
of Stock
Conditions
D. Dickson
15-Sep-22
Stock Options 4,000,000
15-Sep-22
Restricted
Stock Units
1,000,000
P. Neilsen
12-Jul-21
Stock Options 2,000,000
G. Parimoo
14-Oct-21
Stock Options 2,000,000
subject
the commencement date,
Each of the RSUs and the Options will vest in
25% increments on the first four anniversaries
of
to
employment through to the applicable vesting
date.
Options are exercisable for up to three years
from the commencement date, with each
option exercisable into one ordinary share at
an exercise price equal to a 50% premium to
market price at
the Commencement Date
(A$0.55).
Options are exercisable for up to three years
from the commencement date, with each
option exercisable into one ordinary share at
an exercise price equal to a 50% premium to
market price at
the Commencement Date
(A$0.57).
Mr. Parimoo ceased his position 9 January
2023.
1
For details regarding the specific shareholdings and movements of executive KMP (including fair value of sign-on awards) in
the past year, please refer to the Share-Based Payments section of this report.
In addition to the above, during FY23, Mr. Neilsen was provided a one-off discretionary cash payment, which does
not form part of his regular remuneration framework of A$200,000 awarded on 10 October 2022, to reflect his
contribution to reviewing and resetting the project plan for Kachi Project aiming for plant capacity of 50,000 tonnes
per annum by 2030.
In addition to the elements outlined in the Remuneration Framework above, the Board and the Committee also
consider the following elements when making remuneration decisions, including when establishing pay levels for
KMP and other executives.
36
37
4949
Lake Resources NL
Directors' report
For the year ended 30 June 2023
Remuneration report (audited) (continued)
EXECUTIVE REMUNERATION FRAMEWORK (continued)
Use of Other Remuneration Elements (continued)
Table 14: Other Key Considerations
Overview
In addition to statutory benefits such as
superannuation, reasonable benefits and
allowances will be provided for expenses
required for business purposes and to
undertake the relevant executive’s role.
These may include reimbursement of
home office costs,
reasonable travel
allowances and appropriate relocation
allowances.
Mr. Dickson is also entitled to matching
401(k) contributions in the US.
While Sustainability and Risk are not
formulaically
current
reflected
in
these matters are
incentive plans,
when
Board
the
by
considered
establishing the business plan, setting
performance
assessing
corporate and executive performance for
compensation purposes.
The Board expects that all Company
directors, KMP and senior executives
should have substantial ownership of
Company stock.
goals,
and
Board
stock
has
The
ownership
(minimum
guidelines
shareholding requirement) that will take
effect from January 2024.
approved
Considerations
such as
Benefits beyond statutory benefits
leave are provided
superannuation and annual
within the limits of local laws and regulations and
considers market practice and are only provided
where they address business needs.
Lake Resources acknowledges the heightened
environmental risk that the Company faces due to
the nature of
its business. As a part of Lake
Resources’ updated strategy, several sustainability
and Risk matters have been identified as
particularly material to the business are which will
be considered in the design of incentive plans and
in remuneration decisions.
accumulate
The share ownership guidelines will require the
relevant KMP to
a minimum
shareholding level (as indicated below), over a
maximum 5- year period (starting from January
2024 or the date of appointment as KMP):
• MD/CEO:.200% of base salary
• Executive KMP:.100% of base salary
• NED:.100% of base fees
38
Fringe Benefits
and Allowances
Sustainability
and Risk in Pay
Our view on
KMP Share
Ownership
50
LAKE RESOURCES ANNUAL REPORT 2023 Lake Resources NL
Directors' report
For the year ended 30 June 2023
Remuneration report (audited) (continued)
EXECUTIVE REMUNERATION FRAMEWORK (continued)
Use of Other Remuneration Elements (continued)
Table 14: Other Key Considerations
Overview
In addition to statutory benefits such as
superannuation, reasonable benefits and
allowances will be provided for expenses
Considerations
Fringe Benefits
and Allowances
required for business purposes and to
Benefits beyond statutory benefits
such as
undertake the relevant executive’s role.
superannuation and annual
leave are provided
These may include reimbursement of
within the limits of local laws and regulations and
home office costs,
reasonable travel
considers market practice and are only provided
allowances and appropriate relocation
where they address business needs.
allowances.
Mr. Dickson is also entitled to matching
401(k) contributions in the US.
Sustainability
and Risk in Pay
Our view on
KMP Share
Ownership
While Sustainability and Risk are not
Lake Resources acknowledges the heightened
formulaically
reflected
in
current
environmental risk that the Company faces due to
incentive plans,
these matters are
the nature of
its business. As a part of Lake
considered
by
the
Board
when
Resources’ updated strategy, several sustainability
establishing the business plan, setting
and Risk matters have been identified as
performance
goals,
and
assessing
particularly material to the business are which will
corporate and executive performance for
be considered in the design of incentive plans and
compensation purposes.
in remuneration decisions.
The Board expects that all Company
directors, KMP and senior executives
should have substantial ownership of
Company stock.
The share ownership guidelines will require the
relevant KMP to
accumulate
a minimum
shareholding level (as indicated below), over a
maximum 5- year period (starting from January
The
Board
has
approved
stock
ownership
guidelines
(minimum
shareholding requirement) that will take
effect from January 2024.
2024 or the date of appointment as KMP):
• MD/CEO:.200% of base salary
• Executive KMP:.100% of base salary
• NED:.100% of base fees
Lake Resources NL
Directors' report
For the year ended 30 June 2023
Remuneration report (audited) (continued)
EXECUTIVE REMUNERATION FRAMEWORK (continued)
Use of Other Remuneration Elements (continued)
Table 14: Other Key Considerations (continued)
Use of
Discretion and
clawback
Considerations
As the Company remains in the developmental and
exploration phase, there are significant challenges
setting meaningful quantitative goals for
the
the Board
purposes of remuneration. As such,
retains the ability to apply discretion to the
incentive
the
when
performance of
individual
executives in any given performance period to
recognise achievements that are not necessarily
reflected in financial / quantitative metrics.
the Company or
considering
awards
at
and
discretion
Overview
Where necessary, the Board may, in its
absolute
the
recommendation of
the Compensation
Committee, adjust pay outcomes of KMP
and other executives, both downward or
upward based on any material event or
other considerations that
the Board
believes should be reflected in the
assessment of performance for
the
individual business units, or
Company,
individual executives.
or
cancel
In the event of serious misconduct or a
material misstatement in the company’s
financial statements, the Board may in its
discretion
defer
performance-based remuneration and
may also clawback performance-based
remuneration paid in previous financial
years. These malus and clawback
provisions apply to both cash and equity
awards, vested or unvested equity and
whether or not employment is ongoing.
NON-EXECUTIVE DIRECTOR REMUNERATION
Remuneration Policy
Fees and payments to Non-Executive Directors are set considering the demands,
time commitment and
responsibilities expected of their role. The Board reviews fees payable to Non-Executive Directors on an annual basis
with consideration of market practice and any changes to the expectations of their respective roles.
Where considered necessary, the Board may engage external remuneration consultants that are independent of the
Board, Company, and management
information regarding the pay levels of Non-Executive
Directors to/and determine whether fees offered to Lake Resources’ Non-Executive Directors are in line with the
market.
to procure market
Non-Executive Directors are not provided with retirement or termination benefits other than statutory superannuation
for Australia resident directors.
38
39
5151
Lake Resources NL
Directors' report
For the year ended 30 June 2023
Remuneration report (audited) (continued)
NON-EXECUTIVE DIRECTOR REMUNERATION (continued)
FY23 Non-Executive Director Fee Pool
In its review of Non-Executive Director fees, Lake Resources may consider amending the maximum aggregate
amount payable in fees to Non-Executive Directors. At the Company’s November 2022 Annual General Meeting, the
Board sought and gained shareholder approval to increase the maximum aggregate amount payable in fees (fee
pool) to Non-Executive Directors to a maximum of USD1.5 million per annum.
Table 15: FY23 Board Fees (USD’000)
Fee
Description
FY23 Fee (per
annum)
Change from FY22
Board Fees
Chair of the Board
Other Non-Executive Directors
Committee Chair
Fees
Audit Committee
Compensation Committee
Nomination & Governance Committee
Finance Committee
116
80
20
15
15
15
The fee schedule for Non-Executive
Directors were amended from AUD to
USD to be aligned with the fees
expressed in the letters of appointment
for Non-Executive Directors. No other
changes were made.
Restricted Stock Units for Non-Executive Directors
The Company believes that directors of the Company should hold stock in the Company to increase alignment with
shareholder interests. Accordingly, in addition to fees, Non-Executive Directors are issued with the equivalent of USD
150,000 value of shares. This is based on the closing price of the Company’s shares on over-the-counter (OTC) on
the day prior to announcement of appointment in Restricted Stock Units (RSU). The RSU are a one-off grant at the
time of appointment and will vest one-year from the date of appointment. Details of the RSU granted can be found in
the Share-Based Payments section and Table 16 below.
Table 16: RSU allotted to Non-Executive Directors in FY23
Name
C. Bo-Linn
H. Atkins
A. Gomez Chapman
Grant Date
5-Dec-22
5-Dec-22
1-Jan-23
Vesting Date
5-Dec-23
5-Dec-23
1-Jan-24
Number of Units Allotted
232,500
232,500
238,500
52
40
LAKE RESOURCES ANNUAL REPORT 2023 Lake Resources NL
Directors' report
For the year ended 30 June 2023
Remuneration report (audited) (continued)
NON-EXECUTIVE DIRECTOR REMUNERATION (continued)
FY23 Non-Executive Director Fee Pool
In its review of Non-Executive Director fees, Lake Resources may consider amending the maximum aggregate
amount payable in fees to Non-Executive Directors. At the Company’s November 2022 Annual General Meeting, the
Board sought and gained shareholder approval to increase the maximum aggregate amount payable in fees (fee
pool) to Non-Executive Directors to a maximum of USD1.5 million per annum.
Table 15: FY23 Board Fees (USD’000)
Fee
Description
Board Fees
Chair of the Board
Other Non-Executive Directors
Audit Committee
Committee Chair
Compensation Committee
Fees
Nomination & Governance Committee
Finance Committee
Restricted Stock Units for Non-Executive Directors
FY23 Fee (per
annum)
Change from FY22
116
80
20
15
15
15
The fee schedule for Non-Executive
Directors were amended from AUD to
USD to be aligned with the fees
expressed in the letters of appointment
for Non-Executive Directors. No other
changes were made.
The Company believes that directors of the Company should hold stock in the Company to increase alignment with
shareholder interests. Accordingly, in addition to fees, Non-Executive Directors are issued with the equivalent of USD
150,000 value of shares. This is based on the closing price of the Company’s shares on over-the-counter (OTC) on
the day prior to announcement of appointment in Restricted Stock Units (RSU). The RSU are a one-off grant at the
time of appointment and will vest one-year from the date of appointment. Details of the RSU granted can be found in
the Share-Based Payments section and Table 16 below.
Table 16: RSU allotted to Non-Executive Directors in FY23
Name
C. Bo-Linn
H. Atkins
A. Gomez Chapman
Grant Date
Vesting Date
Number of Units Allotted
5-Dec-22
5-Dec-22
1-Jan-23
5-Dec-23
5-Dec-23
1-Jan-24
232,500
232,500
238,500
Lake Resources NL
Directors' report
For the year ended 30 June 2023
Remuneration report (audited) (continued)
STATUTORY DISCLOSURES
The following tables set out the statutory disclosures for the KMP of the Company as required under the Corporations
Act 2001 in accordance with the Australian Accounting Standards.
FY23 KMP Remuneration
Table 17: Statutory remuneration of KMP in FY23 (AUD)
Key Management
Personnel
Directors’
Fees and/or
Salary
Consulting
Fees
Annual
leave
Long
Service
Leave
Post-
Employment
Benefits
Share Based payments
Other
Benefits9
Performance
rights
RSU
Options
Total
2023
Non-Executive
Directors
S. Crow1
R. Trzebski
C. Bo-Linn2
H. Atkins3
A. Gomez Chapman4
N. Lindsay5
A. Saenz6
Executive Directors
S. Crow1
D. Dickson7
N. Lindsay5
Executive
Management
P. Neilsen
G. Parimoo8
Total
177,035
114,826
79,089
82,219
69,290
12,000
24,000
478,329
1,193,458
90,716
-
-
-
-
-
-
142,312
-
-
-
-
-
-
-
-
- 59,414
-
-
-
711,480
190,586
3,223,028
- 134,293
- 48,463
142,312 242,170
-
-
-
-
-
-
-
-
-
-
-
2,185
4,410
-
-
-
-
-
-
-
66,311
8,135
479,292
23,922
200,000
-
-
-
-
-
-
-
-
-
-
-
-
-
- 135,076
- 137,780
-
94,616
-
-
-
-
-
-
-
- 381,979
-
1,184,388
(71,823)
-
-
-
-
2,185
102,778
679,292
(71,823) 749,451
1,184,388
-
-
-
-
-
-
-
-
-
177,035
119,236
214,165
219,999
163,906
12,000
166,312
478,329
3,364,842
27,028
- 1,071,880
239,049
-
6,253,781
1
2
3
4
5
6
7
8
9
Mr. Stuart Crow assumed the position of Non-executive Chair of the Board on 5 January 2023 having previously served as
executive chair from 20 June 2022
Dr. Cheemin Bo-Linn was appointed as Non-Executive Director effective as of 5 December 2022
Mr. Howard Atkins was appointed as Non-Executive Director effective as of 5 December 2022
Ms. Ana Gomez Chapman was appointed as Non-Executive Director effective as of 1 January 2023
Dr. Nicholas Lindsay ceased the position as Non-Executive Director as of 28 November 2022 having previously served as
Technical Director (executive KMP) until 3 October 2022.
Ms. Amalia Saenz ceased the position as Non-Executive Director as of 1 February 2023
Mr. David Dickson assumed the position of Managing Director and Chief Executive Officer on 15 September 2022
Mr. Gautam Parimoo ceased their position as COO on 9 January 2023
“Other benefits” include bonus accruals and payouts during the financial year.
40
41
5353
Lake Resources NL
Directors' report
For the year ended 30 June 2023
Remuneration report (audited) (continued)
STATUTORY DISCLOSURES (continued)
FY22 KMP Remuneration
Table 18: Statutory remuneration of KMP in FY22 (AUD)
Key Management
Personnel
2022
Non-Executive Directors
R. Trzebski
A. Saenz1
Executive Directors
S. Crow2
S. Promnitz3
N. Lindsay
Executive Management
P. Neilsen
G. Parimoo4
G. Gill5
Total
Directors’
Fees and/or
Salary
Consulting
Fees
Annual
Leave
Long
Service
Leave
Post-
Employment
Benefits
Relocation
benefits
Share Based payments
Performance
rights
Options
64,800
141,000
180,000
355,679
300,000
335,258
249,362
-
1,626,099
23,000
1,545
7,200
-
-
-
-
-
-
-
-
-
-
14,164
1,880
568
-
-
-
-
27,502
24,931
27,502
96,600
186,593
- 155,679
15,419
38,445
-
-
108,260
391,453
-
-
-
-
-
-
-
100,000
-
-
273,125
(7,188)
251,379
461,248
760,609
-
-
232,543
18,157
87,135
100,000
517,316
1,221,857
Total
96,545
141,000
549,725
545,836
780,202
863,022
1,109,971
108,260
4,194,561
-
-
-
-
-
-
1
2
3
4
5
Ms. Amalia Saenz assumed the position of Non-Executive Director on 28 July 2021
Mr. Stuart Crow assumed the position of executive chair of the Board on 20 June 2022
Mr. Steve Promnitz ceased the position as Managing Director on 17 June 2022
Mr. Parimoo assumed the position of Chief Operating Officer on 35 October 2021. During FY22, Mr. Parimoo received AUD
100,000 in relocation benefits.
Mr. Gary Gill ceased their position as Chief Financial Officer and Company Secretary on 13 July 2021
Performance Based Remuneration During FY23
Table 19: Percentages of Remuneration that are Performance Based
Name
Fixed remuneration
2022
2023
At risk - STVR
At risk - LTVR
2023
2022
2023
2022
Non-Executive directors
S. Crow
R. Trzebski
C. Bo-Linn
H. Atkins
A. Gomez Chapman
A. Saenz
Executive directors
D. Dickson
N. Lindsay
S. Promnitz
Executive Management
P. Neilsen
G. Parimoo
G. Gill
100%
100%
100%
100%
100%
100%
50%
100%
0%
80%
100%
0%
50%
100%
0%
0%
0%
100%
0%
65%
100%
47%
31%
100%
0%
0%
0%
0%
0%
0%
20%
0%
0%
10%
0%
0%
0%
0%
0%
0%
0%
0%
0%
5%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
30%
0%
0%
10%
0%
0%
50%
0%
0%
0%
0%
0%
0%
30%
0%
53%
69%
0%
42
54
LAKE RESOURCES ANNUAL REPORT 2023 Lake Resources NL
Directors' report
For the year ended 30 June 2023
Remuneration report (audited) (continued)
STATUTORY DISCLOSURES (continued)
FY22 KMP Remuneration
Table 18: Statutory remuneration of KMP in FY22 (AUD)
Key Management
Fees and/or
Consulting
Annual
Service
Employment
Relocation
Performance
Directors’
Long
Post-
Share Based payments
Personnel
Salary
Fees
Leave
Leave
Benefits
benefits
rights
Options
Total
Non-Executive Directors
Executive Directors
2022
R. Trzebski
A. Saenz1
S. Crow2
S. Promnitz3
N. Lindsay
P. Neilsen
G. Parimoo4
G. Gill5
Total
Executive Management
64,800
141,000
180,000
355,679
300,000
335,258
249,362
-
1,626,099
-
-
-
-
108,260
391,453
23,000
1,545
7,200
96,600
- 155,679
186,593
15,419
14,164
1,880
27,502
24,931
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
273,125
(7,188)
251,379
-
-
-
-
-
-
-
-
-
-
96,545
141,000
549,725
545,836
780,202
863,022
1,109,971
108,260
4,194,561
38,445
568
27,502
100,000
461,248
760,609
232,543
18,157
87,135
100,000
517,316
1,221,857
1
2
3
4
5
Ms. Amalia Saenz assumed the position of Non-Executive Director on 28 July 2021
Mr. Stuart Crow assumed the position of executive chair of the Board on 20 June 2022
Mr. Steve Promnitz ceased the position as Managing Director on 17 June 2022
Mr. Parimoo assumed the position of Chief Operating Officer on 35 October 2021. During FY22, Mr. Parimoo received AUD
100,000 in relocation benefits.
Mr. Gary Gill ceased their position as Chief Financial Officer and Company Secretary on 13 July 2021
Performance Based Remuneration During FY23
Table 19: Percentages of Remuneration that are Performance Based
Fixed remuneration
2023
2022
At risk - STVR
At risk - LTVR
2023
2022
2023
2022
Name
Non-Executive directors
A. Gomez Chapman
A. Saenz
Executive directors
S. Crow
R. Trzebski
C. Bo-Linn
H. Atkins
D. Dickson
N. Lindsay
S. Promnitz
P. Neilsen
G. Parimoo
G. Gill
Executive Management
100%
100%
100%
100%
100%
100%
50%
100%
0%
80%
100%
0%
50%
100%
0%
0%
0%
100%
0%
65%
100%
47%
31%
100%
0%
0%
0%
0%
0%
0%
20%
0%
0%
10%
0%
0%
0%
0%
0%
0%
0%
0%
0%
5%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
30%
0%
0%
10%
0%
0%
50%
0%
0%
0%
0%
0%
0%
30%
0%
53%
69%
0%
42
Lake Resources NL
Directors' report
For the year ended 30 June 2023
Remuneration report (audited) (continued)
SERVICE AGREEMENTS
Non-Executive KMP
Non-Executive Directors’ service to Lake Resources is formalised through an appointment letter and appointments
are subject to the provisions of the Company’s constitution and ratification of appointments by shareholder vote at the
Company’s Annual General Meeting (AGM) as required by the relevant ASX listing rules. Non-Executive Directors
may terminate their directorship at any time through notifying the Board of the effective date for resignation. Directors
are remunerated through a basic retainer for services to the Board in addition to Committee fees based on their
service to the applicable committees. Fees are set by the Board to reflect the demands and responsibilities of their
roles. In addition, directors are granted RSU in the Company at the time of appointment with a view to increase
alignment of interests with shareholders. Please refer to the Non-Executive Directors’ Remuneration section of this
report for details regarding the fees and other awards payable to non-executive KMP.
Executive KMP
Remuneration of executive key management personnel referenced within the Remuneration Report are formalised
through service agreements. Key terms from the service agreements as required in the Corporations Act of personnel
that held executive KMP positions during FY23 are summarised below:
Table 20: Key Service Agreement Terms
KMP
Commencement date
Contract term
Executive Notice Company Notice1
EXECUTIVE KMP
David Dickson3
Peter Neilsen
Stuart Crow
Nicholas Lindsay4 1 Jan 2021
Gautam Parimoo5
25 Oct 2021
15 Sep 2022
30 days
3 months
12 Jul 2021
Mr Crow ceased to be an executive KMP upon transitioning to the role of non-executive chair of the
Board on 5 January 2023
4-years from date of commencement2
3-years from date of commencement
30 days
3 months
Until terminated
Until terminated
3 months
3 months
3 months
3 months
1
2
3
4
5
Lake Resources may elect to terminate the contract immediately by making a payment calculated in proportion to the executive
KMP’s base salary and benefits for any period of short notice in lieu of notice
The initial term of Mr. Dickson’s contract is four years, however on each subsequent anniversary of the commencement date,
the contract term is automatically extended by an additional one year unless either the Company or Mr. Dickson provides notice
to the other party no less than 60 days in advance of the expiration of the term
Mr. Dickson’s service agreement provides that, in the case of termination without cause or following resignation for a ’good
reason’, the executive is entitled (subject to any restrictions under applicable law and the requirements of the ASX Listing
Rules) to the amount of the Annual Bonus for the previous calendar year in a lump sum; and an amount in cash equal to
eighteen (18) months base salary; or in the case of termination without cause or resignation for a ‘good reason’ (including a
material diminution in the executive’s responsibility or authority) in a defined period before or in the twelve months following a
change of control event, the executive is entitled (subject to any restrictions under applicable law and the requirements of the
ASX Listing Rules), to the amount of the Annual Bonus for the previous calendar year in a lump sum; and an amount in cash
equal to two and one-half the sum of: the base salary as in effect immediately before the termination, and the maximum annual
incentive opportunity payable under the executive’s service agreement (including full vesting of all outstanding Options and
RSUs). Lake Resources acknowledges that such payments are subject to the requirements of the ASX Listing Rules and may
be in excess of the limits prescribed by the Corporations Act 2001 (Cth),and would thereby seek shareholder approval for any
termination benefit payable in excess of these limits.
Dr. Nicholas Lindsay ceased their position as Non-Executive Director as of 28 November 2022 having previously served as
Technical Director (executive KMP) until 3 October 2022.
Mr. Parimoo ceased his position as COO on 9 January 2023
Key management personnel have no entitlement
misconduct.
to termination benefit payments in the event of removal for
43
5555
Lake Resources NL
Directors' report
For the year ended 30 June 2023
Remuneration report (audited) (continued)
SERVICE AGREEMENTS (continued)
Executive KMP (continued)
Service agreements for incumbent executive KMP
Name
Position
Agreement commenced 15 September 2022
Terms of agreement
D. Dickson
Managing Director/Chief Executive Officer
Term:.4 years from date of appointment
Base Salary:.Mr. Dickson’s employment contract contains agreed compensation being a
base salary of USD 1 million per annum, which automatically extends by an additional year
unless either the Consolidated entity or Mr. Dickson provides notice to the other party at
least 60 days before the expiration of the term
Sign-on bonus:.Upon appointment, Mr. Dickson was granted 1 million restricted stock units
and 4,000,000 stock options that vest in equal tranches over 4-years (25% per annum)
STVR (Short-term variable remuneration):.Maximum annual incentive opportunity of 40%
of base salary delivered in cash
LTVR (Long-term variable remuneration):.Maximum LTI opportunity of 60% of base salary
granted in Performance Shares which will be granted in equal instalments over three (3)
years
Termination: In the case of termination without cause or following resignation for a ‘good
reason’, Mr. Dickson will be entitled to an aggregate payment equivalent to the maximum
amount that may be paid to an employee under the Corporations Act and ASX Listing Rules
without prior shareholder approval; and he will otherwise be entitled to further payments in
excess of this amount, subject to shareholder approval, as described in bullet point (3) in
Table 20 above.
56
44
LAKE RESOURCES ANNUAL REPORT 2023 Lake Resources NL
Directors' report
For the year ended 30 June 2023
Remuneration report (audited) (continued)
SERVICE AGREEMENTS (continued)
Executive KMP (continued)
Service agreements for incumbent executive KMP
Name
Position
D. Dickson
Managing Director/Chief Executive Officer
Agreement commenced 15 September 2022
Terms of agreement
Term:.4 years from date of appointment
Base Salary:.Mr. Dickson’s employment contract contains agreed compensation being a
base salary of USD 1 million per annum, which automatically extends by an additional year
unless either the Consolidated entity or Mr. Dickson provides notice to the other party at
least 60 days before the expiration of the term
Sign-on bonus:.Upon appointment, Mr. Dickson was granted 1 million restricted stock units
and 4,000,000 stock options that vest in equal tranches over 4-years (25% per annum)
STVR (Short-term variable remuneration):.Maximum annual incentive opportunity of 40%
of base salary delivered in cash
LTVR (Long-term variable remuneration):.Maximum LTI opportunity of 60% of base salary
granted in Performance Shares which will be granted in equal instalments over three (3)
years
Termination: In the case of termination without cause or following resignation for a ‘good
reason’, Mr. Dickson will be entitled to an aggregate payment equivalent to the maximum
amount that may be paid to an employee under the Corporations Act and ASX Listing Rules
without prior shareholder approval; and he will otherwise be entitled to further payments in
excess of this amount, subject to shareholder approval, as described in bullet point (3) in
Table 20 above.
Lake Resources NL
Directors' report
For the year ended 30 June 2023
Remuneration report (audited) (continued)
SERVICE AGREEMENTS (continued)
Executive KMP (continued)
Service agreements for incumbent executive KMP (continued)
Name
Position
Agreement commenced 11 July 2021
Term of agreement
P. Neilsen
Chief Financial Officer
Term:.3 years from date of appointment
Base Salary:.Commenced at AUD 330,000 per annum inclusive of statutory superannuation.
Mr. Neilsen’s remuneration increased to USD 500,000 plus superannuation effective 1 August
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.
Incentives:.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 AUD 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 AUD 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) Tranche 1 (25%):.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
(2) Tranche 2 (30%):.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)
(3) Tranche 3 (45%):.measured at the end of the third year after the Commencement Date
- delivery of the Project into production with appropriate reporting mechanisms in place
44
45
5757
Lake Resources NL
Directors' report
For the year ended 30 June 2023
Remuneration report (audited) (continued)
SERVICE AGREEMENTS (continued)
Executive KMP (continued)
Service agreements for incumbent executive KMP (continued)
Name
Position
Agreement
commenced
Terms of agreement
Additional Performance Shares: Mr. Neilsen was granted 680,705 Performance Shares as
compensation for services rendered during the year. This grant was approved by shareholders
at the general meeting of shareholders held 25 January 2022.
Retention Award: Mr. Neilsen was also provided a one-off cash payment of A$200,000 in
light of his contribution to reviewing and resetting the Kachi project plan.
Termination: If termination notice is given by the Company, the Company shall be liable to
pay full compensation for a three-month notice period. If notice is given by the executive, the
notice period is three months. The Consolidated entity shall have the right to choose whether
the executive works his notice period or is paid in lieu of notice.
S. Crow
Executive Chairman
2016 (ceased on 5 January 2023, upon transition to non-executive chair of the Board role)
Term:.Until terminated
Nature of Services:.Chairman of the Lake Resources NL Board, in addition to external
consultant for financing and marketing related services.
Remuneration:.During his appointment as Executive Chairman for an estimated 6-month
period (from 20 June 2022), Mr. Crow received director fees equivalent to AUD 1 million per
annum. The revised remuneration was approved and later confirmed at a Board meeting on 9
August 2022.
Following his transition to non-executive chair of the Board on 20 December 2022, Mr. Crow
was subject
to the service agreements applicable to Non-Executive Directors and the
remuneration payable is based on the fee structure for Non-Executive Directors outlined on
Table 15.
Share-Based Remuneration:.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.
Termination:.There is a 1 week notice period required, in the event of termination of services.
58
46
LAKE RESOURCES ANNUAL REPORT 2023 Lake Resources NL
Directors' report
For the year ended 30 June 2023
Remuneration report (audited) (continued)
SERVICE AGREEMENTS (continued)
Executive KMP (continued)
Service agreements for incumbent executive KMP (continued)
Name
Position
Agreement
commenced
S. Crow
Executive Chairman
Terms of agreement
Term:.Until terminated
Additional Performance Shares: Mr. Neilsen was granted 680,705 Performance Shares as
compensation for services rendered during the year. This grant was approved by shareholders
at the general meeting of shareholders held 25 January 2022.
Retention Award: Mr. Neilsen was also provided a one-off cash payment of A$200,000 in
light of his contribution to reviewing and resetting the Kachi project plan.
Termination: If termination notice is given by the Company, the Company shall be liable to
pay full compensation for a three-month notice period. If notice is given by the executive, the
notice period is three months. The Consolidated entity shall have the right to choose whether
the executive works his notice period or is paid in lieu of notice.
2016 (ceased on 5 January 2023, upon transition to non-executive chair of the Board role)
Nature of Services:.Chairman of the Lake Resources NL Board, in addition to external
consultant for financing and marketing related services.
Remuneration:.During his appointment as Executive Chairman for an estimated 6-month
period (from 20 June 2022), Mr. Crow received director fees equivalent to AUD 1 million per
annum. The revised remuneration was approved and later confirmed at a Board meeting on 9
August 2022.
Table 15.
Following his transition to non-executive chair of the Board on 20 December 2022, Mr. Crow
was subject
to the service agreements applicable to Non-Executive Directors and the
remuneration payable is based on the fee structure for Non-Executive Directors outlined on
Share-Based Remuneration:.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.
Termination:.There is a 1 week notice period required, in the event of termination of services.
Lake Resources NL
Directors' report
For the year ended 30 June 2023
Remuneration report (audited) (continued)
SERVICE AGREEMENTS (continued)
Executive KMP (continued)
Service agreements for incumbent executive KMP (continued)
Dr. N. Lindsay
Name
Executive Technical Director
Position
Agreement
commenced
Terms of agreement
Term:.Until terminated
1 January 2021 (ceased as KMP on 28 November 2022)
Base Salary:.Dr. Lindsay’s employment contract contains agreed compensation being a base
salary of AUD 300,000 per annum in addition to statutory superannuation contributions
Incentives:.Dr. Lindsay’s remuneration package entitles him to participate in the performance
based short-term and long-term variable remuneration plans of the Company.
STVR (Short-term variable remuneration):.Maximum entitlement
to STVR will be
approximately 20% of Base Pay and Benefits up to a maximum value of AUD 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 Base Pay and Benefits as at the Commencement
Date, comprised in Performance Shares granted in tranches over three years. The associated
performance hurdles and weighting will be:
(1) Tranche 1 (40%): 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
(2) Tranche 2 (40%): measured at the end of the second year after the Commencement
Date - closing the debt and equity financing for the Company’s Kachi Project on terms
satisfactory to the Company
(3) Tranche 3 (20%): 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 plant production capacity at the Kachi
project
Termination:.If a 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
the executive, the notice period is three months. Consolidated entity shall have the right to
choose whether the executive works his notice period or be paid in lieu of notice.
46
47
5959
Lake Resources NL
Directors' report
For the year ended 30 June 2023
Remuneration report (audited) (continued)
SERVICE AGREEMENTS (continued)
Executive KMP (continued)
Service agreements for incumbent executive KMP (continued)
Name
Position
Agreement
commenced
Terms of agreement
G. Parimoo
Chief Operating Officer
Term:.Until terminated
25 October 2021 (ceased on 9 January 2023)
Base Salary:.USD 335,000 per year salary excluding superannuation.
Sign-on bonus:.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
Incentives: Mr. Parimoo’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 USD 67,000 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 Base Pay and Benefits as at the Commencement
Date, comprised in Performance Shares granted in tranches over three years. The associated
performance hurdles and weighting will be:
(1) Tranche 1 (40%):.measured no later than 15 months after the Commencement Date -
the Company putting a project team in place to build the Project
(2) Tranche 2 (20%):.measured at the end of the second year after the Commencement
Date - closing the debt and equity financing for the Company’s Kachi Project on terms
satisfactory to the Company
(3) Tranche 3 (40%):.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.
Secondments: For any periods of secondments 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 for himself and his family to Mr. Parimoos’
home base once a year are also provided by the Consolidated entity.
Termination: If termination notice is given by the Consolidated entity, the Consolidated entity
shall be liable to pay full compensation for a three-month notice period. If notice is given by the
executive, the notice period is three months. The Consolidated entity shall have the right to
choose whether the executive works his notice period or is paid in lieu of notice.
48
60
LAKE RESOURCES ANNUAL REPORT 2023 Lake Resources NL
Directors' report
For the year ended 30 June 2023
Remuneration report (audited) (continued)
SERVICE AGREEMENTS (continued)
Executive KMP (continued)
Service agreements for incumbent executive KMP (continued)
Name
Position
Agreement
commenced
G. Parimoo
Chief Operating Officer
25 October 2021 (ceased on 9 January 2023)
Terms of agreement
Term:.Until terminated
Base Salary:.USD 335,000 per year salary excluding superannuation.
Sign-on bonus:.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
Incentives: Mr. Parimoo’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 USD 67,000 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 Base Pay and Benefits as at the Commencement
Date, comprised in Performance Shares granted in tranches over three years. The associated
performance hurdles and weighting will be:
(1) Tranche 1 (40%):.measured no later than 15 months after the Commencement Date -
the Company putting a project team in place to build the Project
(2) Tranche 2 (20%):.measured at the end of the second year after the Commencement
Date - closing the debt and equity financing for the Company’s Kachi Project on terms
satisfactory to the Company
(3) Tranche 3 (40%):.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.
Secondments: For any periods of secondments 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 for himself and his family to Mr. Parimoos’
home base once a year are also provided by the Consolidated entity.
Termination: If termination notice is given by the Consolidated entity, the Consolidated entity
shall be liable to pay full compensation for a three-month notice period. If notice is given by the
executive, the notice period is three months. The Consolidated entity shall have the right to
choose whether the executive works his notice period or is paid in lieu of notice.
48
Lake Resources NL
Directors' report
For the year ended 30 June 2023
Remuneration report (audited) (continued)
SHARE-BASED COMPENSATION
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
12-July-2021
14-Oct-2021
15-Sep-2022
Vesting and
exercise date
12-July-2021
25-Oct-2021
15-Sep-2023
Expiry date
12-July-2024
25-Oct-2024
15-Sep-2027
Exercise
price
$0.55
$0.57
$1.00
Value per
option at
grant date
$0.231
$0.380
$1.095
% Vested
% Expired/
Exercised
100%
100%
0%
0%
0%
0%
8,000,000 options over ordinary shares were issued to key management personnel
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:
following approval at
Name
P. Neilsen
G. Parimoo
D. Dickson
Total
Number of
Options granted
2,000,000
2,000,000
4,000,000
8,000,000
Grant date
12-July-2021
14-Oct-2021
15-Sep-2022
Vesting and
exercise date
12-July-2021
25-Oct-2021
15-Sep-2023
Expiry date
12-July-2024
25-Oct-2024
15-Sep-2027
Exercise
price
$0.55
$0.57
$1.00
Fair value at
grant date
$0.231
$0.380
$1.095
The options will be recognised over the four-year vesting period for all key management personnel. Of the 8,000,000
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
Expiry date
15-Aug-19 15-Aug-24
15-Aug-19 15-Aug-24
15-Aug-19 15-Aug-24
Value at
Grant
$0.0575
$0.0575
$0.0575
No. of
Rights
Granted
5,000,000
2,500,000
7,500,000
Performance
Hurdle
PFS
Pilot plants
Investor
Performance
achieved
100%
100%
100%
No. vested
and
exercised
5,000,000
2,500,000
-
No. of
unvested
performance
rights
-
-
Forfeited
in prior
year
-
-
5,000,000 2,500,000
Forfeited
during
the year
-
-
-
On 15 August 2019, 15,000,000 Performance rights were issued to Directors following approval at the shareholder
meeting of 15 August 2019.
49
6161
Lake Resources NL
Directors' report
For the year ended 30 June 2023
Remuneration report (audited) (continued)
SHARE-BASED COMPENSATION (continued)
Terms and Conditions of the Share-Based Payment Arrangements (continued)
Performance Rights (continued)
Name
S. Crow
Number of
Rights
granted Grant date Expiry date
15-Aug-24
15-Aug-19
5,000,000
15-Aug-24
15-Aug-19
S. Promnitz 5,000,000
15-Aug-24
15-Aug-19
N. Lindsay 5,000,000
15,000,000
Total
Fair value
at grant
date
$0.0575
$0.0575
$0.0575
Vested and
exercised in
a prior year
-
2,500,000
2,500,000
5,000,000
Forfeited in
prior year
-
2,500,000
-
2,500,000
Vested and
exercised
during the
year
-
-
2,500,000
2,500,000 5,000,000
Unvested
as at 30
June 2023
5,000,000
-
-
Performance rights outcomes are as follows:
The Kachi Pre-Feasibility Study (PFS) completion resulted in 2.5 million for N. Lindsay and 2.5 million for S. Promnitz
vested in the 2021 and converted into ordinary shares in 2022.
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.
Dr. Lindsay remaining 2.5 million rights vested on 2 November 2022, and shares were issued on 27 March 2023.
As at 30 June 2023, Dr. Lindsay’s remaining 2.5 million performance rights are fully vested and have been converted
into ordinary shares while Mr. Crow’s 5 million performance rights are yet to vest as the performance hurdle have not
been met.
Performance Shares
Name
Number of
performance
shares
granted
Grant date Expiry date
Converted
to Shares
Expired
Fair value
at grant
date (AUD)
P. Neilsen
N. Lindsay
123,809 22-Feb-2022 12-Dec-2022
139,285 22-Feb-2022 12-Mar-2023
167,142 22-Feb-2022 12-Sep-2023
250,714 22-Feb-2022 12-Sep-2024
92,343 22-Feb-2022 1-Jun-2022
147,749 22-Feb-2022 1-Jun-2022
147,749 22-Feb-2022 1-Mar-2023
73,874 22-Feb-2022 1-Mar-2024
Total
1,142,665
-
-
-
-
-
-
147,749
-
147,749
123,809
139,285
-
-
92,343
147,749
-
73,874
577,060
$0.9000
$0.9000
$0.9000
$0.9000
$0.9000
$0.9000
$0.9000
$0.9000
Total
performance
shares at 30
June 2023
(AUD)
-
-
167,142
250,714
-
-
-
-
417,856
Expensed
2023
-
-
-
-
-
-
-
(71,823)
(71,823)
50
62
LAKE RESOURCES ANNUAL REPORT 2023 Lake Resources NL
Directors' report
For the year ended 30 June 2023
Remuneration report (audited) (continued)
SHARE-BASED COMPENSATION (continued)
Lake Resources NL
Directors' report
For the year ended 30 June 2023
Remuneration report (audited) (continued)
SHARE-BASED COMPENSATION (continued)
Terms and Conditions of the Share-Based Payment Arrangements (continued)
Terms and Conditions of the Share-Based Payment Arrangements (continued)
Performance Shares (continued)
Directors exercised judgement in assessing the number of performance shares that are expected to vest. The vesting
conditions and Directors assessment at 30 June 2023 are summarised below:
Name
Number of
Performance
shares
granted
Performance measure
Measurement
date
Directors judgement at 30 June
2023
P. Neilsen
123,809
139,285
167,142
a
and
the debt
operating
financing for
Delivering
comprehensive
financiers and
reporting package for
potential JV partners post close of the Kachi Project
finance and closing of debt
the
Company’s Kachi Project (60%)
comprehensive
Delivering
and
financiers and
reporting package for
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.
operating
the debt
a
12-Oct-22
This tranche expired during the year.
12-Jan-23
This tranche expired during the year.
Preparation
satisfaction
syndicates and export credit agencies.
financial
financiers,
documents
project
of
of
to
the
banking
12-Jul-23
the Directors
In
this
milestone will not be met by 12 July
2023. Nil expense recorded.
judgement,
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
92,343
147,749
147,749
N. Lindsay
the Project DFS and
Commencement of exploration and testing of brines
from at least one of the Company’s other projects
The Company putting a project
build
demonstration plant on site
The Company closing the debt and equity financing
the Company’s Kachi Project on terms
for
satisfactory to the Company
team in place to
the
building
judgement,
the Directors
In
this
milestone will not be met by 12 July
2024. Nil expense recorded.
This tranche has vested. A$35,911
expense recognised in prior year.
This tranche have vested. A$143,645
expense recognised in prior year.
1-Apr-22
1-Apr-22
1-Jan-23
This tranche has been converted to
shares during the year.
73,874
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 prior
the Directors’
year,
judgment was that financing approval
is expected before 1 January 2024; it
is therefore expected that all 73,874
Performance
vest.
will
Shares
A$71,823 expense recognised.
As at 30 June 2023, prior expenses
recognised has been reversed as a
result of his exit from the company
51
6363
Performance Rights (continued)
Name
Number of
Rights
Fair value
Vested and
at grant
exercised in
Forfeited in
during the
as at 30
Vested and
exercised
Unvested
granted Grant date Expiry date
date
a prior year
prior year
year
S. Crow
5,000,000
S. Promnitz 5,000,000
N. Lindsay 5,000,000
15-Aug-19
15-Aug-19
15-Aug-19
15-Aug-24
15-Aug-24
15-Aug-24
$0.0575
$0.0575
$0.0575
-
2,500,000
2,500,000
2,500,000
-
-
-
-
2,500,000
-
-
June 2023
5,000,000
Total
15,000,000
5,000,000
2,500,000
2,500,000 5,000,000
Performance rights outcomes are as follows:
The Kachi Pre-Feasibility Study (PFS) completion resulted in 2.5 million for N. Lindsay and 2.5 million for S. Promnitz
vested in the 2021 and converted into ordinary shares in 2022.
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.
Dr. Lindsay remaining 2.5 million rights vested on 2 November 2022, and shares were issued on 27 March 2023.
As at 30 June 2023, Dr. Lindsay’s remaining 2.5 million performance rights are fully vested and have been converted
into ordinary shares while Mr. Crow’s 5 million performance rights are yet to vest as the performance hurdle have not
been met.
Performance Shares
Number of
performance
shares
granted
Name
Grant date Expiry date
Expired
at grant
shares at 30
Converted
to Shares
Fair value
performance
Total
date (AUD)
June 2023
(AUD)
Expensed
2023
P. Neilsen
139,285 22-Feb-2022 12-Mar-2023
123,809 22-Feb-2022 12-Dec-2022
167,142 22-Feb-2022 12-Sep-2023
250,714 22-Feb-2022 12-Sep-2024
92,343 22-Feb-2022 1-Jun-2022
N. Lindsay
147,749 22-Feb-2022 1-Jun-2022
147,749 22-Feb-2022 1-Mar-2023
147,749
73,874 22-Feb-2022 1-Mar-2024
-
-
-
-
-
-
-
123,809
139,285
-
-
-
92,343
147,749
73,874
$0.9000
$0.9000
$0.9000
$0.9000
$0.9000
$0.9000
$0.9000
$0.9000
167,142
250,714
-
-
-
-
-
-
Total
1,142,665
147,749
577,060
417,856
-
-
-
-
-
-
-
(71,823)
(71,823)
50
Lake Resources NL
Directors' report
For the year ended 30 June 2023
Remuneration report (audited) (continued)
SHARE-BASED COMPENSATION (continued)
Terms and Conditions of the Share-Based Payment Arrangements (continued)
Restricted Stock Unit
The establishment of the Employee Award Scheme was approved by shareholders at the 2022 Annual General
Meeting. The Employee Award Plan is designed to provide long-term incentives for senior managers and above
(including executive directors) to deliver long-term shareholders returns.
Under the plan, participants are eligible for restricted stock units which vest in 25% increments on each of the first
four anniversaries of the commencement date.
Restricted Stock Unit granted under the plan are for no consideration and carry no dividend or voting rights.
The exercise price for the options shall be the fair value of Lakes Resources NL ordinary shares on the grant date.
The terms and conditions of Restricted Stock Unit Terms and conditions of the share-based payment arrangements
on issue as at 30 June 2023 affecting remuneration of directors and other key management personnel in this financial
period or reporting period are as follows:
Name
Grant date
Vesting date
David Dickson
15-Sep-22
Cheemin Bo-Linn
Howard Atkins
Ana Gomez Chapman
1-Dec-22
2-Dec-22
1- Jan-23
15-Sep-23
15-Sep-24
15-Sep-25
15-Sep-26
1-Dec-23
2-Dec-23
1-Jan-24
Link between remuneration and performance
Number of units
allotted
250,000
250,000
250,000
250,000
232,500
232,500
238,500
Fair value
price
$0.930
$0.930
$0.930
$0.930
$1.005
$1.030
$0.800
Valuation
232,500
232,500
232,500
232,500
233,663
239,475
190,800
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. Additionally, while share price performance has decreased
in 2023 year-on-year, the Company’s refreshed executive team is actively working towards achieving the goals set
out in the updated strategy to commence production by 2027. As such, compensation has been set to ensure the
Company can retain its key talent on its road to achieving its operational goals and enhance shareholder value. 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.
64
52
LAKE RESOURCES ANNUAL REPORT 2023 Lake Resources NL
Directors' report
For the year ended 30 June 2023
Remuneration report (audited) (continued)
SHARE-BASED COMPENSATION (continued)
Terms and Conditions of the Share-Based Payment Arrangements (continued)
Restricted Stock Unit
The establishment of the Employee Award Scheme was approved by shareholders at the 2022 Annual General
Meeting. The Employee Award Plan is designed to provide long-term incentives for senior managers and above
(including executive directors) to deliver long-term shareholders returns.
Under the plan, participants are eligible for restricted stock units which vest in 25% increments on each of the first
four anniversaries of the commencement date.
Restricted Stock Unit granted under the plan are for no consideration and carry no dividend or voting rights.
The exercise price for the options shall be the fair value of Lakes Resources NL ordinary shares on the grant date.
The terms and conditions of Restricted Stock Unit Terms and conditions of the share-based payment arrangements
on issue as at 30 June 2023 affecting remuneration of directors and other key management personnel in this financial
period or reporting period are as follows:
Name
Grant date
Vesting date
Number of units
Fair value
David Dickson
15-Sep-22
Cheemin Bo-Linn
Howard Atkins
Ana Gomez Chapman
1-Dec-22
2-Dec-22
1- Jan-23
Link between remuneration and performance
15-Sep-23
15-Sep-24
15-Sep-25
15-Sep-26
1-Dec-23
2-Dec-23
1-Jan-24
allotted
250,000
250,000
250,000
250,000
232,500
232,500
238,500
price
$0.930
$0.930
$0.930
$0.930
$1.005
$1.030
$0.800
Valuation
232,500
232,500
232,500
232,500
233,663
239,475
190,800
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. Additionally, while share price performance has decreased
in 2023 year-on-year, the Company’s refreshed executive team is actively working towards achieving the goals set
out in the updated strategy to commence production by 2027. As such, compensation has been set to ensure the
Company can retain its key talent on its road to achieving its operational goals and enhance shareholder value. 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.
Lake Resources NL
Directors' report
For the year ended 30 June 2023
Remuneration report (audited) (continued)
Link between remuneration and performance (continued)
The earnings of the Consolidated entity for the five years to 30 June 2023 and share price as at each year end are
summarised below:
Name
Losses for the year attributable
to owners of Lake Resources NL
Net Assets
Share Price at year end (cents)
2023
AUD
2022
AUD
2021
AUD
2020
AUD
2019
AUD
54,207,712
5,606,761
3,119,375
4,760,440
4,760,140
176,324,488
30.00
218,832,461
79.00
46,871,271
33.50
17,049,287
3.50
12,913,063
9.00
Additional Disclosures Relating to KMP
2023 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:
Name
S. Crow
N. Lindsay
P. Neilsen
Total
Balance at the start
of the year
17,919,367
3,216,667
37,850
21,173,884
Received as part of
remuneration
-
-
-
-
Additions Disposal/Other
-
2,500,000
-
2,500,000
(7,919,367)
(5,716,667)
-
(13,636,034)
Balance at the
end of the year
10,000,000
-
37,850
10,037,850
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:
Name
D. Dickson
P. Neilsen
G. Parimoo
Total
Balance at the
start of the year
-
2,000,000
2,000,000
4,000,000
Granted as
remuneration
4,000,000
-
-
4,000,000
Exercised
-
-
-
-
Listed options
received
-
-
-
-
Other
-
-
(2,000,000)
(2,000,000)
Balance at the
end of the year
4,000,000
2,000,000
-
6,000,000
52
53
6565
Lake Resources NL
Directors' report
For the year ended 30 June 2023
Remuneration report (audited) (continued)
Additional Disclosures Relating to KMP (continued)
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
N. Lindsay
Total
Balance at start of
the year
5,000,000
2,500,000
7,500,000
Granted as
remuneration
-
-
-
Converted to shares
Expired
-
(2,500,000)
(2,500,000)
-
-
-
Balance at end
of the year
5,000,000
-
5,000,000
Performance shares
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:
Name
P. Neilsen
N. Lindsay
Total
Balance at start of
the year
680,950
461,715
1,142,665
Granted as
remuneration
-
-
-
Converted to shares
-
(147,749)
(147,749)
Expired
(263,094)
(313,966)
(577,060)
Balance at end
of the year
417,856
-
417,856
Restricted Stock Units
Movements in the number of restricted stock unit 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:
Name
D. Dickson
H. Atkins
C. Bo-Linn
A. Gomez Chapman
Total
Balance at start of
the year
-
-
-
-
-
Granted as
remuneration
1,000,000
232,500
232,500
238,500
1,703,500
Converted to
shares
-
-
-
-
Expired
-
-
-
-
-
Balance at end
of the year
1,000,000
232,500
232,500
238,500
1,703,500
66
54
LAKE RESOURCES ANNUAL REPORT 2023 Lake Resources NL
Directors' report
For the year ended 30 June 2023
Remuneration report (audited) (continued)
Additional Disclosures Relating to KMP (continued)
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
N. Lindsay
Total
Balance at start of
Granted as
the year
remuneration
5,000,000
2,500,000
7,500,000
-
-
-
Performance shares
Converted to shares
Expired
(2,500,000)
(2,500,000)
Balance at end
of the year
5,000,000
-
5,000,000
-
-
-
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:
Name
P. Neilsen
N. Lindsay
Total
Balance at start of
Granted as
the year
remuneration
Converted to shares
680,950
461,715
1,142,665
-
-
-
(147,749)
(147,749)
Expired
(263,094)
(313,966)
(577,060)
Balance at end
of the year
417,856
-
417,856
Restricted Stock Units
Movements in the number of restricted stock unit 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:
Balance at start of
Granted as
Converted to
Balance at end
the year
remuneration
shares
Expired
Name
D. Dickson
H. Atkins
C. Bo-Linn
A. Gomez Chapman
Total
-
-
-
-
-
1,000,000
232,500
232,500
238,500
1,703,500
of the year
1,000,000
232,500
232,500
238,500
1,703,500
-
-
-
-
-
-
-
-
-
-
-
Lake Resources NL
Directors' report
For the year ended 30 June 2023
Remuneration report (audited) (continued)
RELATED PARTY TRANSACTIONS
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 Mr.
Nicholas Lindsay (Director)
Consultancy services provided by former CFO Garry Gill (Executive)
Consultancy services provided by an entity associated with Amalia Saenz
(Director resigned 1 Feb 2023)
Receivable from and (payable to) related parties
Net advances to Mr Stephen Promnitz
Disclosures relating to the advance to Mr Promnitz:
2023
$
2022
$
-
-
-
142,312
142,312
96,600
186,593
108,260
-
391,453
200,000
1,077,773
•
•
•
The outstanding balance at 30 June 2023 was $200,000 (2022: $1,077,773)
The terms and conditions at 30 June 2023 of the advances are unsecured and has no personal guarantees.
No provision for credit loss been recognised.
End of Audited Remuneration Report
54
55
6767
Lake Resources NL
Directors' report
For the year ended 30 June 2023
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
13-Jul-21
01-Aug-21
19-Jan-22
14-Oct-21
26-Apr-22
26-Apr-22
26-Aug-22
12-Sep-22
10-Oct-22
24-Oct-22
24-Oct-22
20-Jul-22 - 20-Jun-23
Total
Expiry date
12-Jul-24
1-Aug-24
19-Jan-25
25-Oct-24
26-Apr-22
26-Apr-22
26-Aug-25
15-Jun-25
15-Sep-25
24-Oct-25
24-Oct-24
20-Jan-25 - 20-Jun-28
$0.55
$0.50
$1.48
$0.57
$1.42
$1.42
$1.50
$0.75
$1.13
$1.00
$1.00
$0.30 - $1.50
Exercise price Number under option
2,000,000
5,601,000
1,000,000
2,000,000
1,036,122
1,036,122
1,000,000
5,550,000
4,000,000
1,500,000
1,500,000
6,129,744
32,352,988
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).
Date options granted
16-Sep-19
09-Mar-21
09-Mar-21
27-Jan-21
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
Expiry date
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
Exercise price Number under option
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
$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
68
56
LAKE RESOURCES ANNUAL REPORT 2023 Lake Resources NL
Directors' report
For the year ended 30 June 2023
Shares under option
Unissued ordinary shares
Unissued ordinary shares of Lake Resources NL under option at the date of this report are as follows:
Exercise price Number under option
20-Jul-22 - 20-Jun-23
20-Jan-25 - 20-Jun-28
$0.30 - $1.50
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).
Date options granted
Expiry date
Exercise price Number under option
Grant Date
13-Jul-21
01-Aug-21
19-Jan-22
14-Oct-21
26-Apr-22
26-Apr-22
26-Aug-22
12-Sep-22
10-Oct-22
24-Oct-22
24-Oct-22
Total
16-Sep-19
09-Mar-21
09-Mar-21
27-Jan-21
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
Expiry date
12-Jul-24
1-Aug-24
19-Jan-25
25-Oct-24
26-Apr-22
26-Apr-22
26-Aug-25
15-Jun-25
15-Sep-25
24-Oct-25
24-Oct-24
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
$0.55
$0.50
$1.48
$0.57
$1.42
$1.42
$1.50
$0.75
$1.13
$1.00
$1.00
$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
2,000,000
5,601,000
1,000,000
2,000,000
1,036,122
1,036,122
1,000,000
5,550,000
4,000,000
1,500,000
1,500,000
6,129,744
32,352,988
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
56
Lake Resources NL
Directors' report
For the year ended 30 June 2023
Performance Rights
At the date of this report there were 5,000,000 unissued ordinary shares of Lake Resources NL under performance
rights. During the financial year ended 30 June 2023, no performance rights have expired in relation to Directors. No
performance rights have been issued or converted to shares since 30 June 2023. 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 417,856 unissued ordinary shares of Lake Resources NL under performance
shares. During the financial year ended 30 June 2023, 577,060 performance shares have expired in relation to
Directors. No performance shares have been issued since 30 June 2023. Information on the issue of performance
shares to Directors is provided in the remuneration report above and 147,749 was 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
wilful 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 $112,670 during the financial year ended 30 June 2023. 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.
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.
57
6969
Lake Resources NL
Directors' report
For the year ended 30 June 2023
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 page 71.
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.
S. Crow
Non-Executive Chairman
28 September 2023
70
58
LAKE RESOURCES ANNUAL REPORT 2023 A copy of the auditor's independence declaration as required under section 307C of the Corporations Act 2001 is
BDO Audit Pty Ltd continues in office in accordance with section 327 of the Corporations Act 2001.
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
This report is made in accordance with a resolution of Directors.
Lake Resources NL
Directors' report
For the year ended 30 June 2023
Auditor's independence declaration
set out on page 71.
Auditor
Rounding of amounts
the nearest dollar.
S. Crow
Non-Executive Chairman
28 September 2023
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
{The Auditor's Independence Declaration will be provided by your Auditor.}
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 2023, 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 period.
R M Swaby
Director
BDO Audit Pty Ltd
Brisbane, 28 September 2023
58
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.
7171
Lake Resources NL
Consolidated statement of profit or loss and other comprehensive income
For the year ended 30 June 2023
Other Income
Gain on Electronic Payment Market (MEP Dollar)
Finance income
Expenses
Depreciation and amortisation expense
Administrative expenses
Corporate expenses
Employee benefits expense
Share based payments expense
Consultancy and legal costs
Foreign exchange gains and losses
Impairment of assets
Gain or loss on remeasurement of VAT receivable
Finance income/(costs) - net
Loss before income tax expense
Income tax expense
Loss after income tax expense for the year
Other comprehensive (loss)/income for the year, net of tax
Items that may be reclassified to profit or loss
Foreign currency translation reserve
Total comprehensive (loss)/income for the year
Profit/(Loss) after income tax expense for the year attributable to:
Owners of Lake Resources NL
Non-controlling interests
Total comprehensive (loss)/ income for the period is attributable to:
Owners of Lake Resources NL
Non-controlling interests
Basic loss per share
Diluted loss per share
Note
2023
$
2022
$
5
43,696,631
2,890,335
9,356,830
34,804
5
5
5
5
5
4
11, 8
8(b)
5
6
(207,433)
(2,973,268)
(9,445,706)
(13,977,944)
(13,018,995)
(15,404,527)
(25,577,700)
(1,929,446)
(10,661,443)
(196,908)
(46,806,404)
(446,639)
(47,253,043)
(51,298)
(726,516)
(3,558,882)
(1,835,588)
(2,425,591)
(3,374,051)
(2,404,457)
-
-
(9,678)
(4,994,427)
(688,666)
(5,683,093)
16
(10,343,798)
(57,596,841)
76,334
(5,606,759)
26
(45,754,115)
(1,498,928)
(47,253,043)
(5,683,093)
-
(5,683,093)
(54,207,712)
(3,389,129)
(57,596,841)
(5,606,761)
-
(5,606,761)
Cents
Cents
17
17
(3.26)
(3.26)
(0.51)
(0.51)
The above consolidated statement of profit or loss and other comprehensive income should be read in conjunction
with the accompanying notes.
60
72
LAKE RESOURCES ANNUAL REPORT 2023 Gain on Electronic Payment Market (MEP Dollar)
Other Income
Finance income
Expenses
Depreciation and amortisation expense
Administrative expenses
Corporate expenses
Employee benefits expense
Share based payments expense
Consultancy and legal costs
Foreign exchange gains and losses
Impairment of assets
Gain or loss on remeasurement of VAT receivable
Finance income/(costs) - net
Loss before income tax expense
Income tax expense
Loss after income tax expense for the year
Other comprehensive (loss)/income for the year, net of tax
Items that may be reclassified to profit or loss
Foreign currency translation reserve
Total comprehensive (loss)/income for the year
Profit/(Loss) after income tax expense for the year attributable to:
Owners of Lake Resources NL
Non-controlling interests
Total comprehensive (loss)/ income for the period is attributable to:
Owners of Lake Resources NL
Non-controlling interests
Basic loss per share
Diluted loss per share
Note
2023
$
2022
$
5
5
5
5
5
5
4
5
6
11, 8
8(b)
43,696,631
2,890,335
9,356,830
34,804
(207,433)
(2,973,268)
(9,445,706)
(13,977,944)
(13,018,995)
(15,404,527)
(25,577,700)
(1,929,446)
(10,661,443)
(196,908)
(46,806,404)
(446,639)
(47,253,043)
(51,298)
(726,516)
(3,558,882)
(1,835,588)
(2,425,591)
(3,374,051)
(2,404,457)
(9,678)
(4,994,427)
(688,666)
(5,683,093)
16
(10,343,798)
(57,596,841)
76,334
(5,606,759)
(45,754,115)
(5,683,093)
26
(1,498,928)
(47,253,043)
(5,683,093)
(54,207,712)
(3,389,129)
(57,596,841)
(5,606,761)
(5,606,761)
Cents
Cents
17
17
(3.26)
(3.26)
(0.51)
(0.51)
-
-
-
-
60
Lake Resources NL
Consolidated statement of profit or loss and other comprehensive income
For the year ended 30 June 2023
Lake Resources NL
Consolidated statement of Financial Position
As at 30 June 2023
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
Other financial assets
Exploration and evaluation
Total non-current assets
Total assets
Liabilities
Current liabilities
Trade and other payables
Lease liabilities
Employee benefits
Total current liabilities
Non-current liabilities
Lease liabilities
Employee benefits
Total non-current liabilities
Total liabilities
Net assets
Equity
Issued capital
Reserves
Accumulated losses
Total equity attributable to owners of the parent
Non-controlling interests
Total equity
Note
7
8
9
12
11
8(b)
10
13
11
14
11
14
30 June
2023
$
30 June
2022
$
89,217,466
1,935,223
1,420,335
92,573,024
175,444,065
5,734,693
286,267
181,465,025
1,541,620
80,806
1,046,001
98,175,863
100,844,290
193,417,314
640,623
229,692
-
41,549,942
42,420,257
223,885,282
11,247,825
348,354
4,170,663
15,766,842
4,515,147
80,235
255,608
4,850,990
1,324,490
1,494
1,325,984
17,092,826
197,622
4,208
201,830
5,052,820
176,324,488
218,832,462
15(a)
16(f)
229,703,796
6,513,767
(64,968,080)
171,249,483
5,075,005
176,324,488
231,179,318
9,508,419
(21,855,275)
218,832,462
-
218,832,462
The above consolidated statement of profit or loss and other comprehensive income should be read in conjunction
with the accompanying notes.
The above Consolidated statement of Financial Position should be read in conjunction with the accompanying notes.
7373
Lake Resources NL
Consolidated statement of changes in equity
For the year ended 30 June 2023
Attributable to owners of Lake
Resources NL
Note
Issued capital
$
Reserves
$
Accumulated
Losses
$
Total equity
attributable
to owners of
the parent
$
Non-
controlling
interests
$
Balance at 1 July 2021
65,748,642
3,364,591
(22,241,962)
46,871,271
Loss for the year
Other comprehensive
income
Total comprehensive
income for the year
Transactions with
owners in their
capacity as owners:
Contributions of equity,
net of transaction costs
Share issue costs
Issue of unlisted options
to brokers
Issue of unlisted options
to brokers
Transfer from option
reserve to accumulated
losses on options
expired/exercised
Issue of performance
rights
Balance at 30 June
2022
-
-
-
-
(5,683,093)
(5,683,093)
76,334
-
76,334
76,334
(5,683,093)
(5,606,759)
15(a)
15(a)
175,575,639
(10,144,963)
15
-
-
-
-
-
1,800,461
9,711,684
-
-
-
-
175,575,639
(10,144,963)
1,800,461
9,711,684
(6,069,780)
6,069,780
-
-
165,430,676
625,129
6,067,494
-
6,069,780
625,129
177,567,950
231,179,318
9,508,419
(21,855,275) 218,832,462
-
-
-
-
-
-
-
-
-
-
-
-
Total
equity
$
46,871,271
(5,683,093)
76,334
(5,606,759)
175,575,639
(10,144,963)
1,800,461
9,711,684
-
625,129
177,567,950
218,832,462
The above consolidated statement of changes in equity should be read in conjunction with the accompanying notes.
62
74
LAKE RESOURCES ANNUAL REPORT 2023 Lake Resources NL
Consolidated statement of changes in equity
For the year ended 30 June 2023
Lake Resources NL
Consolidated statement of changes in equity
For the year ended 30 June 2023
Attributable to owners of Lake
Resources NL
Total equity
attributable
Non-
Accumulated
to owners of
controlling
Issued capital
Reserves
Losses
the parent
interests
Note
$
$
$
$
$
Attributable to owners of Lake
Resources NL
Note
Issued capital
$
Reserves
$
Total equity
attributable
to owners
of the
parent
$
Non-
controlling
interests
$
Accumulated
Losses
$
Total
equity
$
Balance at 1 July 2021
65,748,642
3,364,591
(22,241,962)
46,871,271
46,871,271
Balance at 1 July 2022
231,179,318
9,508,419
(21,855,276) 218,832,461
-
218,832,461
-
(5,683,093)
(5,683,093)
76,334
76,334
76,334
(5,683,093)
(5,606,759)
15(a)
15(a)
175,575,639
(10,144,963)
15
-
-
1,800,461
9,711,684
175,575,639
(10,144,963)
1,800,461
9,711,684
(6,069,780)
6,069,780
-
165,430,676
625,129
6,067,494
6,069,780
177,567,950
625,129
-
-
-
-
-
-
-
-
-
-
-
-
-
Loss for the year
Other comprehensive
income
Total comprehensive
income for the year
Transactions with
owners in their
capacity as owners:
Contributions of equity,
net of transaction costs
Share issue costs
Issue of unlisted options
Issue of unlisted options
to brokers
to brokers
Transfer from option
reserve to accumulated
losses on options
expired/exercised
Issue of performance
rights
Balance at 30 June
2022
231,179,318
9,508,419
(21,855,275) 218,832,462
218,832,462
Loss for the year
Other comprehensive
income
Total comprehensive
income for the year
Transactions with
owners in their capacity
as owners:
Contributed equity
Share issue costs
Issue of unlisted options
to brokers and KMPs and
other employees
Unwinding of performance
rights to Directors
Issue of unlisted options
to brokers
Transfer from option
reserve to accumulated
losses on options
expired/exercised
Change in interest in
controlled entity
Issue of restricted stock
units to employees
19
19
19(b)
26
20
-
-
-
-
(45,754,115) (45,754,115) (1,498,928)
(47,253,043)
(8,453,597)
-
(8,453,597) (1,890,201)
(10,343,798)
(8,453,597)
(45,754,115) (54,207,712) (3,389,129)
(57,596,841)
15(a)
15(a)
2,348,232
(3,823,754)
-
-
-
-
2,348,232
(3,823,754)
11,959,835
- 11,959,835
(57,467)
3,489,695
-
-
(57,467)
3,489,695
(2,641,311)
2,641,311
-
-
-
-
-
-
(8,464,134)
-
(8,464,134) 8,464,134
-
(1,475,522)
1,172,327
5,458,945
-
2,641,311
1,172,327
6,624,734
-
8,464,134
1,172,327
15,088,868
-
-
-
-
-
-
2,348,232
(3,823,754)
11,959,835
(57,467)
3,489,695
-
-
Balance at 30 June 2023
229,703,796
6,513,767
(64,968,080) 171,249,483
5,075,005
176,324,488
The above consolidated statement of changes in equity should be read in conjunction with the accompanying notes.
The above consolidated statement of changes in equity should be read in conjunction with the accompanying notes.
7575
Total
equity
$
(5,683,093)
76,334
(5,606,759)
175,575,639
(10,144,963)
1,800,461
9,711,684
-
625,129
177,567,950
-
-
-
-
-
-
-
-
-
-
-
-
62
Lake Resources NL
Consolidated statement of cash flows
For the year ended 30 June 2023
Cash flows from operating activities
Payments to suppliers (Inclusive of GST)
Interest received
Interest paid
Income taxes paid
Net cash (outflow) from operating activities
Cash flows from investing activities
Payments for property, plant and equipment
Payments for exploration and evaluation
Net or gross receipt from Electronic Payment Market (MEP) transactions
Net cash (outflow) from investing activities
Cash flows from financing activities
Proceeds from issue of shares, net of transaction costs
Principal payments of lease liabilities
Net cash inflow from financing activities
Net (decrease) increase in cash and cash equivalents
Cash and cash equivalents at the beginning of the financial year
Effects of exchange rate changes on cash and cash equivalents
Cash and cash equivalents at end of year
Note
2023
$
2022
$
(29,981,156)
2,890,335
(196,908)
(446,639)
(27,734,368)
(8,841,357)
-
(8,090)
(688,666)
(9,538,113)
(1,236,656)
(66,522,685)
43,696,631
(24,062,710)
(615,061)
(23,596,548)
9,363,016
(14,848,593)
29
10
15(a)
2,014,175
(244,767)
1,769,408
174,193,136
(19,440)
174,173,696
(50,027,670)
175,444,065
(36,198,929)
89,217,466
149,786,990
25,657,074
-
175,444,064
7
The above consolidated statement of cash flows should be read in conjunction with the accompanying notes.
64
76
LAKE RESOURCES ANNUAL REPORT 2023 Lake Resources NL
Consolidated statement of cash flows
For the year ended 30 June 2023
Cash flows from operating activities
Payments to suppliers (Inclusive of GST)
Interest received
Interest paid
Income taxes paid
Net cash (outflow) from operating activities
Cash flows from investing activities
Payments for property, plant and equipment
Payments for exploration and evaluation
Net or gross receipt from Electronic Payment Market (MEP) transactions
Net cash (outflow) from investing activities
Cash flows from financing activities
Proceeds from issue of shares, net of transaction costs
Principal payments of lease liabilities
Net cash inflow from financing activities
Net (decrease) increase in cash and cash equivalents
Cash and cash equivalents at the beginning of the financial year
Effects of exchange rate changes on cash and cash equivalents
Cash and cash equivalents at end of year
(29,981,156)
(8,841,357)
2,890,335
(196,908)
(446,639)
-
(8,090)
(688,666)
29
(27,734,368)
(9,538,113)
10
(1,236,656)
(66,522,685)
43,696,631
(615,061)
(23,596,548)
9,363,016
(24,062,710)
(14,848,593)
15(a)
2,014,175
(244,767)
1,769,408
174,193,136
(19,440)
174,173,696
(50,027,670)
149,786,990
175,444,065
(36,198,929)
25,657,074
-
7
89,217,466
175,444,064
Note
2023
$
2022
$
1 Significant accounting policies
Lake Resources NL
Note to the consolidated financial statements
30 June 2023
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.
(i) 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).
(ii) Historical cost convention
The consolidated financial statements have been prepared under the historical cost convention.
(iii) 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 2023 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.
(iv) 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.
(c) 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 $47,253,043 (30 June 2022: loss $5,683,095) and net cash
outflows from operating and investing activities of $51,797,078 for the year ended 30 June 2023. At 30 June 2023,
the Company had net current assets of $76,806,182.
The above consolidated statement of cash flows should be read in conjunction with the accompanying notes.
64
65
7777
Lake Resources NL
Note to the consolidated financial statements
30 June 2023
1 Significant accounting policies (continued)
(c) Going concern (continued)
Based upon the Consolidated entity’s existing cash resources, the Directors consider there are reasonable grounds
to believe that the Consolidated entity will be able to continue as a going concern after consideration of the following
factors:
•
•
•
The Consolidated entity has cash reserves of $89,217,466 at 30 June 2023;
The Consolidated entity has no loans or borrowings; and
The Consolidated entity has the ability to adjust its expenditure outlays subject to results of its exploration
activities and the Consolidated entity’s funding position
The Directors believe that the above indicators demonstrate that the Consolidated entity will be able to pay its debts
as and when they fall due and continue as a going concern. Therefore, the Directors believe it is appropriate to adopt
the going concern basis for the preparation of the Consolidated entity’s 2023 annual financial report.
The Directors expect that while current funds would be sufficient to meet a minimum program of exploration and
development, an expanded program would require additional funds. The Consolidated entity has previously raised
funds through share placements and capital raisings from new and existing shareholders.
Lake has At-the-market subscription Agreement (ATM) (also referred to as Controlled Placement Agreement) with
Acuity Capital. This agreement was extended from 31 January 2023 to 31 January 2026, this provides another
additional source of raising cash and can be utilized by the Group at any point.
(d) 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 25.
(e) Principles of consolidation
The consolidated financial statements incorporate all 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 27.
liabilities and results of
the assets,
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.
(i) Subsidiaries
Subsidiaries are all entities (including structured entities) over which the Consolidated entity has control. The
Consolidated entity controls an entity where the Consolidated entity 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 to direct the activities
of the entity. Subsidiaries are fully consolidated from the date on which control is transferred to the Consolidated
entity. They are deconsolidated from the date that control ceases.
78
66
LAKE RESOURCES ANNUAL REPORT 2023 Lake Resources NL
30 June 2023
Note to the consolidated financial statements
1 Significant accounting policies (continued)
(c) Going concern (continued)
Based upon the Consolidated entity’s existing cash resources, the Directors consider there are reasonable grounds
to believe that the Consolidated entity will be able to continue as a going concern after consideration of the following
factors:
•
•
•
The Consolidated entity has cash reserves of $89,217,466 at 30 June 2023;
The Consolidated entity has no loans or borrowings; and
The Consolidated entity has the ability to adjust its expenditure outlays subject to results of its exploration
activities and the Consolidated entity’s funding position
The Directors believe that the above indicators demonstrate that the Consolidated entity will be able to pay its debts
as and when they fall due and continue as a going concern. Therefore, the Directors believe it is appropriate to adopt
the going concern basis for the preparation of the Consolidated entity’s 2023 annual financial report.
The Directors expect that while current funds would be sufficient to meet a minimum program of exploration and
development, an expanded program would require additional funds. The Consolidated entity has previously raised
funds through share placements and capital raisings from new and existing shareholders.
Lake has At-the-market subscription Agreement (ATM) (also referred to as Controlled Placement Agreement) with
Acuity Capital. This agreement was extended from 31 January 2023 to 31 January 2026, this provides another
additional source of raising cash and can be utilized by the Group at any point.
(d) 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 25.
(e) 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 27.
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.
(i) Subsidiaries
Subsidiaries are all entities (including structured entities) over which the Consolidated entity has control. The
Consolidated entity controls an entity where the Consolidated entity 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 to direct the activities
of the entity. Subsidiaries are fully consolidated from the date on which control is transferred to the Consolidated
entity. They are deconsolidated from the date that control ceases.
66
Lake Resources NL
Note to the consolidated financial statements
30 June 2023
1 Significant accounting policies (continued)
(e) Principles of consolidation (continued)
(i) Subsidiaries (continued)
Intercompany transactions, balances and unrealised gains on transactions between Group companies are eliminated.
Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the transferred
asset. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the
policies adopted by the Consolidated entity.
Non-controlling interests in the results and equity of subsidiaries are shown separately in the consolidated statement
of profit or loss and other comprehensive income, statement of comprehensive income, statement of changes in
equity and statement of financial position respectively.
(ii) Changes in ownership interests
The Consolidated entity treats transactions with non-controlling interests that do not result in a loss of control as
transactions with equity owners of the Consolidated entity. A change in ownership interest results in an adjustment
between the carrying amounts of the controlling and non-controlling interests to reflect their relative interests in the
subsidiary. Any difference between the amount of the adjustment to non-controlling interests and any consideration
paid or received is recognised in a separate reserve within equity attributable to owners of Lake Resources NL.
(f) 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.
(g) 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.
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.
67
7979
Lake Resources NL
Note to the consolidated financial statements
30 June 2023
1 Significant accounting policies (continued)
(g) Foreign currency translation (continued)
(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.
(h) MEP contract settlement – Argentina cash calls: USD conversion to ARS
(i) Overview
USD cash calls are transferred from Lake Resources NL bank account (Australia) to Argentina subsidiary company
bank accounts, to cover working capital in relation to the Kachi project costs. USD is subsequently converted, by the
subsidiary companies,
in a
hyperinflationary economy, the USD is regularly converted to ARS via a MEP Dollar trading mechanism with a local
bank/broker in Argentina.
to ARS (Argentinian peso). To maximise the value of
local purchasing power
(ii) Accounting treatment for MEP contract settlements
FX gains/losses on settlement: Settled FX contract bonds to sell USD and buy ARS are recorded initially in subsidiary
ledger (ARS base currency) and then restated to AUD at month end for presentation/reporting purposes. The MEP (*
Electronic Payment Market) are financial instruments in line with AASB 9 (the sale of the bonds) characterized as
gain/loss on the sale of the bond. The gain or loss associated with the trading of these financial instruments are
treated as other income or other expenses in the Consolidated statement of profit or loss and other comprehensive
income.
(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.
68
80
LAKE RESOURCES ANNUAL REPORT 2023 Lake Resources NL
30 June 2023
Note to the consolidated financial statements
1 Significant accounting policies (continued)
(g) Foreign currency translation (continued)
(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.
(h) MEP contract settlement – Argentina cash calls: USD conversion to ARS
(i) Overview
USD cash calls are transferred from Lake Resources NL bank account (Australia) to Argentina subsidiary company
bank accounts, to cover working capital in relation to the Kachi project costs. USD is subsequently converted, by the
subsidiary companies,
to ARS (Argentinian peso). To maximise the value of
local purchasing power
in a
hyperinflationary economy, the USD is regularly converted to ARS via a MEP Dollar trading mechanism with a local
bank/broker in Argentina.
(ii) Accounting treatment for MEP contract settlements
FX gains/losses on settlement: Settled FX contract bonds to sell USD and buy ARS are recorded initially in subsidiary
ledger (ARS base currency) and then restated to AUD at month end for presentation/reporting purposes. The MEP (*
Electronic Payment Market) are financial instruments in line with AASB 9 (the sale of the bonds) characterized as
gain/loss on the sale of the bond. The gain or loss associated with the trading of these financial instruments are
treated as other income or other expenses in the Consolidated statement of profit or loss and other comprehensive
income.
(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.
68
Lake Resources NL
Note to the consolidated financial statements
30 June 2023
1 Significant accounting policies (continued)
(i) Financial instruments (continued)
(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.
(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
instrument's credit risk has increased significantly since initial recognition, based on reasonable and
financial
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.
Income tax
(j)
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 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.
69
8181
Lake Resources NL
Note to the consolidated financial statements
30 June 2023
1 Significant accounting policies (continued)
Income tax (continued)
(j)
Deferred tax assets are recognised only if it is probable that future taxable amounts will be available to utilise those
temporary differences and losses.
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
classification.
financial position based on current and non-current
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 11.
70
82
LAKE RESOURCES ANNUAL REPORT 2023 Lake Resources NL
30 June 2023
Note to the consolidated financial statements
Lake Resources NL
Note to the consolidated financial statements
30 June 2023
1 Significant accounting policies (continued)
1 Significant accounting policies (continued)
Deferred tax assets are recognised only if it is probable that future taxable amounts will be available to utilise those
(j)
Income tax (continued)
temporary differences and losses.
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.
as non-current.
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
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
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
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 11.
liability.
period.
•
•
•
•
70
(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.
71
8383
Lake Resources NL
Note to the consolidated financial statements
30 June 2023
1 Significant accounting policies (continued)
(r) Property, plant and equipment
The Consolidated entity's accounting policy for land and buildings is explained in note 12. 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 12.
The asset's residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each reporting
year.
An assets' 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.
(v) Employee benefits
(i) 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.
(ii) Defined contribution superannuation expense
Contributions to defined contribution superannuation plans are expensed in the period in which they are incurred.
72
84
LAKE RESOURCES ANNUAL REPORT 2023 Lake Resources NL
30 June 2023
Note to the consolidated financial statements
1 Significant accounting policies (continued)
(r) Property, plant and equipment
The Consolidated entity's accounting policy for land and buildings is explained in note 12. 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 12.
The asset's residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each reporting
year.
An assets' 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.
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
(v) Employee benefits
(i) Short-term employee benefits
liabilities are settled.
(ii) Defined contribution superannuation expense
Contributions to defined contribution superannuation plans are expensed in the period in which they are incurred.
72
Lake Resources NL
Note to the consolidated financial statements
30 June 2023
1 Significant accounting policies (continued)
(v) Employee benefits (continued)
(iii) 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.
(iv) 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:
•
•
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.
73
8585
Lake Resources NL
Note to the consolidated financial statements
30 June 2023
1 Significant accounting policies (continued)
(v) Employee benefits (continued)
(iv) Share-based payments (continued)
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,
the use of
observable market data.
to the extent possible,
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.
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
Level 2:
the measurement date;
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.
86
74
LAKE RESOURCES ANNUAL REPORT 2023 Lake Resources NL
30 June 2023
Note to the consolidated financial statements
1 Significant accounting policies (continued)
(v) Employee benefits (continued)
(iv) Share-based payments (continued)
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.
best use.
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
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
Level 2:
Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either
the measurement date;
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.
74
Lake Resources NL
Note to the consolidated financial statements
30 June 2023
1 Significant accounting policies (continued)
(w) Fair value of assets and liabilities (continued)
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 8 and 19 for the disclosures on inputs used in the fair value measurement of share based payments
granted during the year and fair valuing of financial instruments as at 30 June 2023.
(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.
Issued capital
(y)
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
(i) 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.
(ii) 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.
75
8787
Lake Resources NL
Note to the consolidated financial statements
30 June 2023
1 Significant accounting policies (continued)
(aa) Goods and Services Tax (GST) and other similar taxes (continued)
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 Exploration &
Evaluation asset. In FY 2023, VAT receivable were reclassified from current to non-current and carried at amortised
cost which is measured based on a discounted cashflow model.
(ab)Comparative figures
When required by Accounting Standards, comparative figures have been adjusted to conform to changes in
presentation for the current financial year.
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, revenue and expenses. Management bases its
judgements, estimates and assumptions on historical experience and on other various factors, including expectations
future events, management believes to be reasonable under the circumstances. The resulting accounting
of
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.
liabilities, contingent
(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 19 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
88
76
LAKE RESOURCES ANNUAL REPORT 2023 Lake Resources NL
30 June 2023
Note to the consolidated financial statements
Lake Resources NL
Note to the consolidated financial statements
30 June 2023
1 Significant accounting policies (continued)
2 Critical accounting judgements, estimates and assumptions (continued)
(aa) Goods and Services Tax (GST) and other similar taxes (continued)
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 Exploration &
Evaluation asset. In FY 2023, VAT receivable were reclassified from current to non-current and carried at amortised
cost which is measured based on a discounted cashflow model.
When required by Accounting Standards, comparative figures have been adjusted to conform to changes in
(ab)Comparative figures
presentation for the current financial year.
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
Refer to Note 19 for the disclosures on inputs used in the fair value measurement of share based payments granted
or loss and equity.
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
(b) Exploration and evaluation costs (continued)
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:
(i) 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;
(ii) 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 2024;
led to the discovery of
(iii) exploration for and evaluation of mineral resources in the specific area have not
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;
(iv) 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.
3 Operating segments
Segment information
The Consolidated entity currently operates entirely in the mineral exploration industry, with interests in Argentina and
corporate operations in Australia and US. Accordingly, the information provided to the Board of Directors is prepared
using the same measures used in preparing the financial statements.
76
77
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T
LAKE RESOURCES ANNUAL REPORT 2023 Lake Resources NL
Note to the consolidated financial statements
30 June 2023
4 Foreign exchange gains and losses
Realized gain or loss
Unrealized gain or loss
5 Loss before income tax
Loss before income tax includes the following specific expenses:
(a) Administrative expenses
Office expenses
Short-term lease expenses
Other expenses
Computer/Software Licence fees
space
(b) Corporate expenses
Travel
Investor Relations
Share Registry Maintenance
Marketing Expenses - Advertising
IT Support Service Costs
Insurance
Auditors fees
(c) Employee benefit expense
Superannuation
Wages, salary and other benefits
space
(d) Share based payment
Share based payments expense
space
2023
$
2022
$
(506,380)
(25,071,320)
(25,577,700)
22,620
(2,427,077)
(2,404,457)
2023
$
2022
$
398,887
211,693
1,636,218
726,470
2,973,268
3,276,135
808,548
399,733
221,534
507,289
3,692,857
539,610
9,445,706
379,342
48,944
218,867
79,363
726,516
570,872
1,345,086
710,659
299,837
1,772
140,696
489,960
3,558,882
185,583
13,792,361
13,977,944
131,025
1,704,563
1,835,588
13,018,995
2,425,591
79
9191
Lake Resources NL
Note to the consolidated financial statements
30 June 2023
5 Loss before income tax (continued)
(e) Consultancy and legal costs
Directors fees
Other
Consulting Fee
Legal expenses
(f) Finance (income) and expenses
Interest and finance charges payable for lease liabilities
Interest expense
a
a
2023
$
2022
$
1,288,722
1,003,753
10,494,681
2,617,371
15,404,527
244,143
481,171
1,979,687
669,050
3,374,051
182,834
14,074
196,908
8,090
1,588
9,678
(g) Gain on Electronic Payment Market (MEP Dollar)
The Argentine government has instituted exchange controls restricting the purchase of foreign currencies. As a result
of these exchange controls, the Group use a legal trading mechanism commonly known as the MEP Dollar in which
the Argentinian subsidiaries, Morena Del Valle SA and Minerales Australes SA buy Argentinian bonds in USD, and
then sell the bonds, via local banking broker in Argentina, for Argentinian Peso. This is to enable the Group to fund
working capital and exploration activities in its Argentinian operations. The MEP Dollar exchange rate has diverged
significantly from Argentina’s official exchange rate resulting in the Group recognising a gain from MEP Dollar bond
transactions.
MEP Dollar mechanism requires 24 hours holding period on the US Dollar denominated security that is purchased,
therefore exposes the Company to substantive market risk during the holding period the exact amount of US Dollars
cannot be reliably obtained until the holding period has expired.
The MEP Dollar bonds are classified as financial assets at fair value through profit and loss, where the gain or loss
associated with the trading of these financial instruments are treated as other income or other expenses. A gain of
$43,696,631 was recognised in the year ended (2022: $9,356,830). The Group held no unsettled MEP Dollar bonds
at 30 June 2023 (30 June 2022: $Nil).
92
80
LAKE RESOURCES ANNUAL REPORT 2023 Lake Resources NL
Note to the consolidated financial statements
30 June 2023
6 Income tax expense
(a) Reconciliation
Current tax on profits for the year
Deferred income tax benefit
Aggregated Income tax (benefit)/expense
(b) Numerical reconciliation of income tax expense
2023
$
2022
$
(7,696,875)
8,143,514
446,639
(1,413,010)
2,101,676
688,666
The prima facie income tax on the loss is reconciled to the income tax expense as
follows:
(23,504,571)
(4,994,428)
Prima facie tax benefit 30% (2022 - 30%) on loss before income tax
space
Add tax effect of:
Non deductible expenses
Deferred tax asset not recognised
Argentinian tax inflation adjustment
Income tax expense
(7,051,371)
(1,498,328)
3,400,791
8,143,514
(4,046,295)
446,639
761,456
2,101,676
(676,138)
688,666
23,057,932
4,305,762
The Consolidated entity has unrecouped, unconfirmed carry forward tax losses of approximately $81,380,323 (2022:
$46,204,746).
A deferred income tax asset arising from carry forward tax losses will only be recognised to the extent that:
(a)
(b)
(c)
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;
the Consolidated entity continues to comply with the conditions for deductibility imposed by the law; and
no changes in tax legislation adversely affect the Consolidated entity in realising the benefit from the losses.
81
9393
Lake Resources NL
Note to the consolidated financial statements
30 June 2023
6 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
Total deferred tax liabilities
Set-off of deferred tax liabilities pursuant to set-off provisions
Net deferred tax liabilities
94
2023
$
2022
$
677,686
95,176
41,861
54,343
24,414,097
25,283,163
398,668
38,646
74,618
728,123
13,861,343
15,101,398
689,861
25,973,024
1,551,720
16,653,118
(8,757,238)
(17,215,786)
-
(5,893,145)
(10,759,973)
-
2023
$
2022
$
(8,757,238)
(8,757,238)
(5,893,145)
(5,893,145)
8,757,238
-
5,893,145
-
82
LAKE RESOURCES ANNUAL REPORT 2023 Lake Resources NL
30 June 2023
Note to the consolidated financial statements
6 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
Total deferred tax liabilities
Net deferred tax liabilities
Set-off of deferred tax liabilities pursuant to set-off provisions
8,757,238
5,893,145
2023
$
2022
$
677,686
95,176
41,861
54,343
398,668
38,646
74,618
728,123
24,414,097
25,283,163
13,861,343
15,101,398
689,861
25,973,024
1,551,720
16,653,118
(8,757,238)
(5,893,145)
(17,215,786)
(10,759,973)
2023
$
2022
$
(8,757,238)
(8,757,238)
(5,893,145)
(5,893,145)
-
-
-
-
82
Lake Resources NL
Note to the consolidated financial statements
30 June 2023
7 Cash and cash equivalents
Current assets
Cash at bank
Deposits at call
8 Trade receivables
(a) Current assets
Current assets
Other receivables
VAT receivable
Related party receivable
Interest receivable
Security deposit
2023
$
2022
$
26,362,624
62,854,842
89,217,466
145,154,034
30,290,031
175,444,065
2023
$
2022
$
582,449
-
200,000
291,899
860,875
1,935,223
471,265
4,147,682
1,077,773
37,973
-
5,734,693
As at 30 June 2022, a net related party receivable balance of $1,077,773 was disclosed, representing cash advances
and expense payments for former Lake Resources NL Chief Executive Officer and Managing Director (Mr. Promnitz).
During the 2023 financial year, funds totalling $450,000 were received from Mr. Promnitz, for payment of his prior
year options issued by Lake Resources NL, and $427,773 offset against
the receivable balance. Following
negotiations with Mr. Promnitz' legal representative, a further write-down occurred during the 2023 financial year, with
final related party receivable balance of $200,000 reported at 30 June 2023. This aligns with final settlement amount
to be received during the 2024 financial year.
Due to the short-term nature of the related party receivable balance, its fair value is taken to equate to carrying
amount as reported at 30 June 2023. The maximum exposure to credit risk for the Consolidated entity, is the carrying
value of the related party receivable balance. Nil collateral is held as security in relation to the balance due.
Security deposit balances relates to demand deposits of $860,875 (2022: nil) that are required to be maintained as
security and can be used only to settle future claims or amount due, if any, on termination of contract. The contractual
restriction on the use of demand deposits and adjustment review ends after the first full year following the effective
date of the agreement estimated to be 1 January 2024.
83
9595
Lake Resources NL
Note to the consolidated financial statements
30 June 2023
8 Trade receivables (continued)
(b) VAT Receivable
Non current
Other financial assets
2023
$
2022
$
1,046,001
1,046,001
-
-
The Group has a total of $1,046,001 (2022: $Nil) of non-current Value Added Tax (VAT) recoveries due from the
Argentina Revenue Authority. The Group records VAT at fair value due to the hyperinflationary economy in Argentina
and the highly devaluing local currency. Fair value has been determined using a discounted cash flow valuation
technique based on the forecast timing of recovery. In FY 2023, VAT receivable was classified from current to
non-current.
9 Other current assets
Prepayments
Deposits
Current Tax Asset
10 Exploration and evaluation
Exploration and evaluation asset
Opening net book amount
Additions - direct exploration cost
Effect of foreign currency translation
VAT Receivable
2023
$
2022
$
1,412,238
324
7,773
1,420,335
280,906
5,361
-
286,267
2023
$
2022
$
41,549,942
66,522,685
(9,896,764)
-
98,175,863
21,736,854
23,496,549
(2,738,531)
(944,930)
41,549,942
Exploration and evaluation costs are carried forward in the statement of financial position as detailed in accounting
policy Note 1. The Consolidated entity determined no indicators of impairment were identified during the period,
hence no provision for impairment was recorded in the financial statements for the year ended 30 June 2023. The
recoverability of exploration project acquisition costs is dependent upon the successful development and commercial
exploitation, or alternatively the sale of areas of interest.
96
84
LAKE RESOURCES ANNUAL REPORT 2023 Lake Resources NL
30 June 2023
Note to the consolidated financial statements
8 Trade receivables (continued)
(b) VAT Receivable
Non current
Other financial assets
non-current.
9 Other current assets
Prepayments
Deposits
Current Tax Asset
Exploration and evaluation asset
Opening net book amount
Additions - direct exploration cost
Effect of foreign currency translation
VAT Receivable
10 Exploration and evaluation, development and mine properties
Exploration and evaluation costs are carried forward in the statement of financial position as detailed in accounting
policy Note 1. The Consolidated entity determined no indicators of impairment were identified during the period,
hence no provision for impairment was recorded in the financial statements for the year ended 30 June 2023. The
recoverability of exploration project acquisition costs is dependent upon the successful development and commercial
exploitation, or alternatively the sale of areas of interest.
2023
$
2022
$
1,046,001
1,046,001
-
-
2023
$
2022
$
1,412,238
324
7,773
280,906
5,361
-
1,420,335
286,267
2023
$
2022
$
41,549,942
66,522,685
(9,896,764)
-
98,175,863
21,736,854
23,496,549
(2,738,531)
(944,930)
41,549,942
84
Lake Resources NL
Note to the consolidated financial statements
30 June 2023
11 Right-of-use asset and lease liabilities
(a) Amounts recognised in the statement of financial position
The statement of financial position shows the following amounts relating to leases:
The Group has a total of $1,046,001 (2022: $Nil) of non-current Value Added Tax (VAT) recoveries due from the
Argentina Revenue Authority. The Group records VAT at fair value due to the hyperinflationary economy in Argentina
and the highly devaluing local currency. Fair value has been determined using a discounted cash flow valuation
technique based on the forecast timing of recovery. In FY 2023, VAT receivable was classified from current to
Right-of-use assets
Opening balance
Additions
Accumulated depreciation
Exchange differences
Asset write off
Net book amount
2023
$
2022
$
229,692
1,516,212
(71,400)
(257,778)
(1,335,920)
80,806
-
258,111
(28,419)
-
-
229,692
Additions to the right-of-use assets during the 2023 financial year were $1,516,212 (2022 - $258,111). The Group's
leases primarily relate to real commercial property leases in Argentina, as at year end.
Lease liabilities
Current
Non-current
348,354
1,324,490
1,672,844
80,235
197,622
277,857
In December 2022, Lake Corporate FL LLC a subsidiary of Lake Resources NL entered into a 63 months lease for an
office space in Florida with commencement date 1 December 2022, with no option to renew. Following the
subsequent restructuring, increase in staff and change in operational strategy, the Group identified that an office
space in Houston will be more beneficial to the Group, could accommodate all of the staff, and took the decision to
relocate the Corporate office to Houston. The leased property in Florida, has been marketed with a local estate agent
to be sub-leased by the firm for the remainder of the lease term.
In estimating the recoverable amount of the right-of-use asset, the directors have made assumptions about the
achievable market rates for similar properties with similar lease terms. Due to the associated uncertainty, it is
possible that the estimates of the amount of lease payment that will be recovered through the sub-lease of the
property may need to be revised during the next year. As at 30 June 2023, there have not been any indicators that
the property will be successfully leased and achieving a sub-lease for only 0% of the lease payment is considered
reasonably possible based on recent experience in the market and would lead to an impairment charge of $1,335,920
against the right-of-use asset in respect of the property.
Lake continues to have the obligation to make lease payments. The outstanding lease liability on Florida property as
at 30 June 2023 is $1,406,222.
85
9797
Lake Resources NL
Note to the consolidated financial statements
30 June 2023
11 Right-of-use asset and lease liabilities (continued)
(b) Amounts recognised in the statement of profit or loss and other comprehensive income
Depreciation charge of right of use assets
Interest expenses
2023
$
2022
$
59,951
-
28,419
-
182,834
8,090
(c) The Consolidated entity's 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.
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 110.47% for leases held in Argentina.
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.
(d) 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.
(e) 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).
86
98
LAKE RESOURCES ANNUAL REPORT 2023 Lake Resources NL
30 June 2023
Note to the consolidated financial statements
Lake Resources NL
Note to the consolidated financial statements
30 June 2023
11 Right-of-use asset and lease liabilities (continued)
12 Property, plant and equipment
(b) Amounts recognised in the statement of profit or loss and other comprehensive income
Depreciation charge of right of use assets
Interest expenses
2023
$
2022
$
59,951
-
28,419
-
182,834
8,090
(c) The Consolidated entity's 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.
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 110.47% for leases held in Argentina.
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.
(d) 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.
(e) 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).
86
Plant and Equipment
Cost
Accumulated depreciation
Total plant and equipment
Furniture, fittings and equipment
Cost
Accumulated depreciation
Total furniture, fittings and equipment
Machinery and 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 2023
$
30 June 2022
$
1,036,243
(9,157)
1,027,086
38,038
(7,154)
30,884
54,128
(5,399)
48,729
65,357
(3,810)
61,547
205,658
(64,361)
141,297
405,744
(47,316)
358,428
36,571
(3,655)
32,916
72,150
(3,038)
69,112
375,754
(66,317)
309,437
125,503
(22,696)
102,807
1,541,620
640,623
87
9999
Lake Resources NL
Note to the consolidated financial statements
30 June 2023
12 Property, plant and equipment (continued)
Plant and
equipment
$
Furniture,
fittings and
equipment
$
Machinery
and vehicles
$
Building
improvements
$
Other
property,
plant and
equipment
$
Total
$
48,729
61,547
358,428
69,112
102,807
640,623
(22,141)
1,008,808
(8,310)
(30,352)
3,925
(4,236)
(176,753)
-
(40,378)
(33,738)
-
(2,458)
(59,153)
306,161
(40,378)
(322,137)
1,318,894
(95,760)
1,027,086
30,884
141,297
32,916
309,437
1,541,620
11,027
37,338
364
9,548
57,416
882
1,068
79,941
52,691
(692)
331,075
(30,063)
70,715
(2,485)
123,275
(21,536)
615,094
(54,412)
48,729
61,547
358,428
69,112
102,807
640,623
30 June 2023
Carrying amount at 1
July 2022
Exchange differences
Additions
Depreciation charge
Carrying amount at
30 June 2023
30 June 2022
Carrying amount at 1
July 2021
Additions
Depreciation charge
Carrying amount at
30 June 2022
(a) 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:
Building improvements
•
•
Plant and equipment
• Machinery and Vehicles
•
Furniture, fittings and equipment
• Other property, plant and equipment
25 - 40 years
10 - 20 years
3 - 5 years
3 - 8 years
3 - 8 years
Leasehold improvements are depreciated over the shorter of their useful
expects to use the assets beyond the lease term.
life or the lease term, unless the entity
All other property, plant and equipment is recognised at historical cost less depreciation.
100
88
LAKE RESOURCES ANNUAL REPORT 2023 Lake Resources NL
30 June 2023
Note to the consolidated financial statements
Lake Resources NL
Note to the consolidated financial statements
30 June 2023
12 Property, plant and equipment (continued)
13 Trade and other payables
Furniture,
fittings and
Machinery
Building
Other
property,
plant and
equipment
and vehicles
improvements
equipment
$
$
$
$
Total
$
Plant and
equipment
$
48,729
61,547
358,428
69,112
102,807
640,623
(22,141)
1,008,808
(8,310)
(30,352)
3,925
(4,236)
(176,753)
-
(40,378)
(33,738)
-
(2,458)
(59,153)
306,161
(40,378)
(322,137)
1,318,894
(95,760)
1,027,086
30,884
141,297
32,916
309,437
1,541,620
11,027
37,338
364
9,548
57,416
882
1,068
79,941
52,691
(692)
331,075
(30,063)
70,715
(2,485)
123,275
(21,536)
615,094
(54,412)
48,729
61,547
358,428
69,112
102,807
640,623
30 June 2023
Carrying amount at 1
July 2022
Additions
Exchange differences
Depreciation charge
Carrying amount at
30 June 2023
30 June 2022
Carrying amount at 1
July 2021
Additions
Depreciation charge
Carrying amount at
30 June 2022
(a) 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:
Building improvements
Plant and equipment
• Machinery and Vehicles
•
•
•
Furniture, fittings and equipment
• Other property, plant and equipment
25 - 40 years
10 - 20 years
3 - 5 years
3 - 8 years
3 - 8 years
Current liabilities
Trade payables
Accrued expenses (Refer to note 13 (a))
Payroll tax and other statutory liabilities
(a) Accrued expenses
Operating Accruals
Drilling and well design cost
Camp construction & maintenance cost
14 Employee benefit obligations
2023
$
2022
$
3,653,301
7,529,576
64,948
11,247,825
3,020,511
1,328,895
165,741
4,515,147
2023
$
2022
$
2,876,643
2,369,688
2,283,245
7,529,576
1,328,895
-
-
1,328,895
2023
2022
Current
$
Non-
current
$
Current
$
Annual leave
Provision for Short-term Incentive
Employee Benefits: Leave and other benefits payable
Closing balance at 30 June
1,026,847
2,830,467
313,349
4,170,663
-
-
1,494
1,494
85,947
-
169,661
255,608
15 Equity
(a)
Issued capital
Non-
current
$
-
-
4,208
4,208
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.
2023
Shares
2022
Shares
2023
$
2022
$
All other property, plant and equipment is recognised at historical cost less depreciation.
Ordinary shares - fully paid
1,422,444,707 1,389,709,907
229,703,796
231,179,318
88
89
101101
Lake Resources NL
Note to the consolidated financial statements
30 June 2023
15 Equity (continued)
(b) Movements in share capital
Details
Notes
Number of
shares
Issue
price
$
Opening balance 1 July 2021
Issue of shares - Director share options
Issue of shares - Redcloud options
Exercise of options
Exercise of options
Exercise of options
Exercise of options
Exercise of options
Exercise of options
Exercise of options
Exercise of options
Exercise of options
Less: Transaction costs arising on share issue - as cash
Less: Transaction cost arising on options issued - to brokers
Balance 30 June 2022
Exercise of options
Exercise of options
Exercise of options
Exercise of options
Exercise of options
Exercise of options
Exercise of options
Exercise of options
Exercise of options
Exercise of options
Exercise of option
Exercise of option
Share issue - Acuity Capital
Share issue- Conversion of Performance rights
Less: Transaction costs arising on share issue - as cash
Less: Transaction cost arising on options issued - to brokers
Balance 30 June 2023
1,058,077,328
14,000,000
1,500,000
67,124,040
4,000,000
1,000,000
35,000,000
17,000
40,000,000
86,094,394
82,895,145
2,000
-
-
1,389,709,907
26,000
43,000
64,300
37,503
93,000
225,000
700,000
350,000
400,000
21,837
1,000,000
2,274,157
25,000,000
2,500,000
-
-
1,422,444,704
-
0.090
0.300
0.300
0.750
0.170
0.550
0.490
0.980
0.350
0.750
0.980
-
-
-
0.490
0.490
0.300
0.300
0.490
0.750
0.750
0.750
0.750
-
0.300
0.300
-
-
-
-
-
19(b)
$
65,748,642
1,260,000
450,000
20,137,212
3,000,000
165,000
19,250,000
8,330
39,000,000
30,133,038
62,171,359
700
(433,279)
(9,711,684)
231,179,318
12,740
21,070
19,290
11,250
45,570
168,750
525,000
262,500
300,000
-
300,000
682,061
-
-
(334,057)
(3,489,696)
229,703,610
(c) Ordinary shares
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.
90
102
LAKE RESOURCES ANNUAL REPORT 2023 Lake Resources NL
30 June 2023
Note to the consolidated financial statements
15 Equity (continued)
(b) Movements in share capital
Details
Opening balance 1 July 2021
Issue of shares - Director share options
Issue of shares - Redcloud options
Less: Transaction costs arising on share issue - as cash
Less: Transaction cost arising on options issued - to brokers
Balance 30 June 2022
Exercise of options
Exercise of options
Exercise of options
Exercise of options
Exercise of options
Exercise of options
Exercise of options
Exercise of options
Exercise of options
Exercise of options
Exercise of options
Exercise of options
Exercise of options
Exercise of options
Exercise of options
Exercise of options
Exercise of options
Exercise of options
Exercise of options
Exercise of option
Exercise of option
Notes
Number of
shares
Issue
price
$
1,058,077,328
14,000,000
1,500,000
67,124,040
4,000,000
1,000,000
35,000,000
17,000
40,000,000
86,094,394
82,895,145
2,000
1,389,709,907
-
-
-
-
26,000
43,000
64,300
37,503
93,000
225,000
700,000
350,000
400,000
21,837
1,000,000
2,274,157
25,000,000
2,500,000
1,422,444,704
$
65,748,642
1,260,000
450,000
20,137,212
3,000,000
165,000
19,250,000
8,330
39,000,000
30,133,038
62,171,359
700
-
-
-
(433,279)
(9,711,684)
231,179,318
12,740
21,070
19,290
11,250
45,570
168,750
525,000
262,500
300,000
300,000
682,061
-
-
-
(334,057)
(3,489,696)
229,703,610
-
0.090
0.300
0.300
0.750
0.170
0.550
0.490
0.980
0.350
0.750
0.980
0.490
0.490
0.300
0.300
0.490
0.750
0.750
0.750
0.750
0.300
0.300
-
-
-
-
-
-
90
Share issue - Acuity Capital
Share issue- Conversion of Performance rights
Less: Transaction costs arising on share issue - as cash
Less: Transaction cost arising on options issued - to brokers
19(b)
Balance 30 June 2023
(c) Ordinary shares
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.
Lake Resources NL
Note to the consolidated financial statements
30 June 2023
15 Equity (continued)
(c) Ordinary shares (continued)
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.
(d) 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 19.
(e) Performance rights
Movements in performance rights were as follows:
Name
S. Crow
S. Promnitz
N. Lindsay
Total
Number of
Rights
granted
5,000,000
5,000,000
5,000,000
15,000,000
Grant date
15-Aug-19
15-Aug-19
15-Aug-19
Expiry date
15-Aug-24
15-Aug-24
15-Aug-24
Fair value at
grant date
$0.0575
$0.0575
$0.0575
Vested and
exercised in a
prior year
-
2,500,000
2,500,000
5,000,000
Forfeited in
prior year
-
2,500,000
-
2,500,000
Vested and
exercised
during the
year
-
-
2,500,000
2,500,000
Unvested
as at 30
June 2023
5,000,000
-
-
5,000,000
On 15 August 2019, 15,000,000 Performance rights were issued to Directors following approval at the shareholder
meeting of 15 August 2019.
The terms and conditions of performance rights on issue at 30 June 2023 affecting remuneration of directors and
other key management personnel in this financial year or future reporting years are as follows:
Grant
date
Expiry date
15-Aug-19 15-Aug-24
15-Aug-19 15-Aug-24
15-Aug-19 15-Aug-24
Value at
Grant
$0.0575
$0.0575
$0.0575
No. of
Rights
Granted
5,000,000
2,500,000
7,500,000
Performance
Hurdle
PFS
Pilot plants
Investor
Performance
achieved
100%
100%
100%
No. vested
and
exercised
5,000,000
2,500,000
-
No. of
unvested
performance
rights
-
-
Forfeited
in prior
year
-
-
5,000,000 2,500,000
Forfeited
during
the year
-
-
-
Performance rights outcomes are as follows:
The Kachi Pre-Feasibility Study (PFS) completion resulted in 2,500,000 for N. Lindsay and 2,500,000 for S. Promnitz
vested in the 2021 and converted into ordinary shares in 2022.
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.
Dr. Lindsay remaining 2.5 million rights which vested on 2 November 2022, and shares were issued on 27 March
2023.
As at 30 June 2022 Dr. Lindsay’s remaining 2.5 million performance rights are fully vested. In this financial period the
performance right issued to Dr. Lindsay was exercise and shares have been issued while Mr. Crow’s 5 million
performance right are yet to vest as the performance hurdles are yet to be met as at 30 June 2023.
91
103103
Lake Resources NL
Note to the consolidated financial statements
30 June 2023
15 Equity (continued)
(f) Performance shares
The terms and conditions of performance shares on issue at 30 June 2023 affecting remuneration of directors, other
key management personnel and employees in this financial year or future reporting years are as follows:
Grant date Expiry date
12-Dec-22
24-Feb-22
12-Mar-23
24-Feb-22
12-Sep-23
24-Feb-22
12-Sep-24
24-Feb-22
1-Jun-22
24-Feb-22
1-Jun-22
24-Feb-22
1-Mar-23
24-Feb-22
1-Mar-23
24-Feb-22
22-Jan-24
12-Sept-22
22-Jan-24
12-Sept-22
22-Nov-24
12-Sept-22
Balance at the
start of the year
123,809
139,285
167,142
250,714
92,343
147,749
147,749
73,874
-
-
-
1,142,665
Granted
Converted to
Shares
-
-
-
-
-
-
-
-
33,058
39,669
92,563
165,290
-
-
-
-
-
-
(147,749)
-
-
-
(147,749)
Expired
(123,809)
(139,285)
(92,343)
(147,749)
(73,874)
-
-
-
(577,060)
Balance at the
end of the
year
Vested during
year but not
converted
-
-
167,142
250,714
-
-
-
-
33,058
39,669
92,563
583,146
-
-
-
-
-
-
-
-
-
-
-
-
Due to Dr. Lindsay's resignation on the 28 November 2022, the unwinding of his remaining performance shares was
performed in the current year.
Terms and conditions of performance shares issued during the year
Number of
Rights
granted
Name
SVP Field
Development &
Evaluation
33,058
39,669
92,563
Performance measure
Public announcement of a maiden
JORC resource at any of the
Cauchari, Olaroz or Paso de Jama
Public announcement of a second
maiden resource at any of
Cauchari, Olaroz or Paso de Jama
Successful completion of a
Preliminary Economic Assessment
(PEA) or Prefeasibility Study (PFS)
at any of Cauchari, Olaroz or Paso
de Jama prospects
Measurement
date
Directors judgement at 30 June
2023
22-Nov-23
22-Nov-23
In the Directors judgement, this
milestone will be met by
measurement date.
In the Directors judgement, this
milestone will not be met by
measurement date.
22-Aug-24
In the Directors judgement, this
milestone will not be met by
measurement date.
104
92
LAKE RESOURCES ANNUAL REPORT 2023 Lake Resources NL
30 June 2023
Note to the consolidated financial statements
15 Equity (continued)
(f) Performance shares
The terms and conditions of performance shares on issue at 30 June 2023 affecting remuneration of directors, other
key management personnel and employees in this financial year or future reporting years are as follows:
Grant date Expiry date
start of the year
Granted
Shares
Expired
Balance at the
Converted to
Balance at the
Vested during
end of the
year
year but not
converted
24-Feb-22
24-Feb-22
24-Feb-22
24-Feb-22
24-Feb-22
24-Feb-22
24-Feb-22
24-Feb-22
12-Sept-22
12-Sept-22
12-Sept-22
12-Dec-22
12-Mar-23
12-Sep-23
12-Sep-24
1-Jun-22
1-Jun-22
1-Mar-23
1-Mar-23
22-Jan-24
22-Jan-24
22-Nov-24
123,809
139,285
167,142
250,714
92,343
147,749
147,749
73,874
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(123,809)
(139,285)
(92,343)
(147,749)
(73,874)
167,142
250,714
-
-
-
-
-
-
-
-
-
33,058
39,669
92,563
(147,749)
-
-
-
33,058
39,669
92,563
1,142,665
165,290
(147,749)
(577,060)
583,146
Due to Dr. Lindsay's resignation on the 28 November 2022, the unwinding of his remaining performance shares was
performed in the current year.
Terms and conditions of performance shares issued during the year
Number of
Rights
granted
Name
SVP Field
Development &
Evaluation
Performance measure
Public announcement of a maiden
Measurement
date
Directors judgement at 30 June
2023
In the Directors judgement, this
33,058
JORC resource at any of the
22-Nov-23
milestone will be met by
Cauchari, Olaroz or Paso de Jama
Public announcement of a second
measurement date.
In the Directors judgement, this
39,669
maiden resource at any of
22-Nov-23
milestone will not be met by
Cauchari, Olaroz or Paso de Jama
Successful completion of a
Preliminary Economic Assessment
measurement date.
In the Directors judgement, this
92,563
(PEA) or Prefeasibility Study (PFS)
22-Aug-24
milestone will not be met by
at any of Cauchari, Olaroz or Paso
measurement date.
de Jama prospects
-
-
-
-
-
-
-
-
-
-
-
-
92
Lake Resources NL
Note to the consolidated financial statements
30 June 2023
15 Equity (continued)
(g) Options
Movements in options were as follows:
Grant /
Vest date
Expiry
date
Exercised
price
Balance at 1
July 2022
Issued
Expired
Exercised
Balance at
30 June 2023
-
2,000,000
(162,000)
5,601,000
Option issued to KMP
Option issued to Brokers/
Consultants
Option issued to Brokers/
Consultants
Option issued to Brokers/
Consultants
Option issued to Brokers/
Consultants
Option issued to Brokers/
Consultants
Option issued to Brokers/
Consultants
Option issued to Brokers/
Consultants
Option issued to Staff
Option issued to Staff
Option issued to Brokers/
Consultants
Option issued to Brokers/
Consultants
Option issued to Director
Option issued to Brokers/
Consultants
Option issued to Brokers/
Consultants
Option issued to KMP
Option issued to Brokers/
Consultants
Option issued to Staff
Option issued to Staff
Option issued to Staff
Option issued to Staff
Option issued to Staff
Option issued to Staff
Option issued to Staff
Option issued to Staff
Option issued to Staff
Option issued to Staff
13-Jul-21
12-Jul-24
$0.55
2,000,000
1-Aug-22
1-Aug-24
$0.50
5,763,000
19-Jan-22 19-Jan-25
$1.48
1,000,000
14-Oct-21 25-Oct-24
$0.57
2,000,000
16-Mar-22
1-Mar-23
$1.00
100,000
16-Mar-22 15-Oct-22
$0.75
225,000
26-Apr-22 26-Apr-25
$1.42
1,036,122
-
-
-
-
-
-
-
26-Apr-22 26-Apr-25
20-Jul-25
20-Jul-22
26-Aug-22 26-Aug-25
$1.42
$0.70
$1.42
1,036,122
-
-
-
1,000,000
1,000,000
12-Sep-22 15-Jun-25
$0.75
12-Sep-22 15-Jun-25
15-Sep-22 15-Sep-27
$0.75
$1.13
24-Oct-22 24-Oct-25
$1.00
24-Oct-22 24-Oct-25
10-Oct-22 10-Oct-27
$1.00
$0.99
-
-
-
-
-
-
280,000
1,260,000
4,000,000
1,500,000
1,500,000
500,000
-
-
-
-
(100,000)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(225,000)
-
-
-
-
-
-
-
-
-
-
1-Jan-23
9-Jan-23
12-Sep-22 15-Jun-25
14-Nov-22 14-Nov-27
11-Oct-22 11-Oct-27
11-Nov-22 21-Nov-27
1-Jan-27
9-Jan-27
11-Jan-23 11-Jan-27
16-Jan-23 16-Jan-27
1-Feb-27
1-Feb-23
1-April-23 1-April-27
20-Jun-23 20-Jun-27
5,460,000
$0.75
75,000
$1.17
300,000
$0.99
50,000
$1.06
851,700
$0.83
1,000,000
$0.80
75,000
$0.84
100,000
$0.83
1,145,692
$0.82
150,000
$0.45
882,352
$0.31
$24.28 13,160,244 21,129,744
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(100,000)
(1,450,000)
-
-
-
-
-
-
-
-
-
-
(1,837,000)
1,000,000
2,000,000
-
-
1,036,122
1,036,122
1,000,000
1,000,000
280,000
1,260,000
4,000,000
1,500,000
1,500,000
500,000
4,010,000
75,000
300,000
50,000
851,700
1,000,000
75,000
100,000
1,145,692
150,000
882,352
32,352,988
93
105105
Lake Resources NL
Note to the consolidated financial statements
30 June 2023
15 Equity (continued)
(g) Options (continued)
(i)
The status of the outstanding options balance at 30 June 2023 is as follows:
Grant/ Vest
date
Expiry
date
Exercised
Price
Balance at 30
June 2023
Options
Vested
Options
Exercisable
Options
unvested
Options
Unexercisable
Option issued to KMP
Option issued to Brokers/
Consultants
Option issued to Brokers/
Consultants
Option issued to Brokers/
Consultants
Option issued to Brokers/
Consultants
Option issued to Brokers/
Consultants
Option issued to Staff
Option issued to Staff
Option issued to Brokers/
Consultants
Option issued to Brokers/
Consultants
Option issued to Director
Option issued to Brokers/
Consultants
Option issued to Brokers/
Consultants
Option issued to KMP
Option issued to Brokers/
Consultants
Option issued to Staff
Option issued to Staff
Option issued to Staff
Option issued to Staff
Option issued to Staff
Option issued to Staff
Option issued to Staff
Option issued to Staff
Option issued to Staff
Option issued to Staff
13-Jul-21 12-Jul-24
$0.55
2,000,000
2,000,000
2,000,000
1-Aug-22 1-Aug-24
$0.50
5,601,000
5,601,000
5,601,000
19-Jan-22 19-Jan-25 $1.48
1,000,000
1,000,000
1,000,000
14-Oct-21 25-Oct-24
$0.57
2,000,000
2,000,000
2,000,000
26-Apr-22 26-Apr-25
$1.42
1,036,122
1,036,122
1,036,122
$1.42
26-Apr-22 26-Apr-25
20-Jul-22 20-Jul-25
$0.70
26-Aug-22 26-Aug-25 $1.42
1,036,122
1,000,000
1,000,000
1,036,122
1,000,000
1,000,000
1,036,122
1,000,000
1,000,000
12-Sep-22 15-Jun-25 $0.75
280,000
280,000
280,000
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
12-Sep-22 15-Jun-25 $0.75
15-Sep-22 15-Sep-27 $1.13
1,260,000
4,000,000
1,260,000
-
1,260,000
-
- 4,000,000
-
4,000,000
24-Oct-22 24-Oct-25
$1.00
1,500,000
1,500,000
1,500,000
-
-
24-Oct-22 24-Oct-25
10-Oct-22 10-Oct-27
$1.00
$0.99
1,500,000
500,000
1,500,000
-
1,500,000
-
-
500,000
-
500,000
12-Sep-22 15-Jun-25 $0.75
14-Nov-22 14-Nov-27 $1.17
11-Oct-22 11-Oct-27
$0.99
11-Nov-22 21-Nov-27 $1.06
$0.83
1-Jan-23
9-Jan-23
$0.80
11-Jan-23 11-Jan-27 $0.84
16-Jan-23 16-Jan-27 $0.83
$0.82
1-Feb-23 1-Feb-27
1-Apr-23
$0.45
1-Apr-27
20-Jun-23 20-Jun-27 $0.31
1-Jan-27
9-Jan-27
4,010,000
75,000
300,000
50,000
851,700
1,000,000
75,000
100,000
1,145,692
150,000
882,352
4,010,000
-
-
-
-
-
-
-
-
-
-
32,352,988 23,223,244
-
4,010,000
75,000
-
300,000
-
50,000
-
-
851,700
- 1,000,000
75,000
-
-
100,000
- 1,145,692
150,000
-
882,352
-
23,223,244 9,129,744
-
75,000
300,000
50,000
851,700
1,000,000
75,000
100,000
1,145,692
150,000
882,352
9,129,744
(h) 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.
94
106
LAKE RESOURCES ANNUAL REPORT 2023 Lake Resources NL
30 June 2023
Note to the consolidated financial statements
15 Equity (continued)
(g) Options (continued)
(i)
The status of the outstanding options balance at 30 June 2023 is as follows:
Grant/ Vest
Expiry
Exercised
Balance at 30
date
date
Price
June 2023
Options
Vested
Options
Options
Options
Exercisable
unvested
Unexercisable
Option issued to KMP
Option issued to Brokers/
Option issued to Brokers/
Consultants
Consultants
Consultants
Consultants
Consultants
Option issued to Brokers/
Option issued to Brokers/
Option issued to Brokers/
Option issued to Staff
Option issued to Staff
Option issued to Brokers/
Option issued to Brokers/
Consultants
Consultants
Option issued to Brokers/
Consultants
Consultants
Option issued to Brokers/
Option issued to KMP
Option issued to Brokers/
Consultants
Option issued to Staff
Option issued to Staff
Option issued to Staff
Option issued to Staff
Option issued to Staff
Option issued to Staff
Option issued to Staff
Option issued to Staff
Option issued to Staff
Option issued to Staff
13-Jul-21 12-Jul-24
$0.55
2,000,000
2,000,000
2,000,000
1-Aug-22 1-Aug-24
$0.50
5,601,000
5,601,000
5,601,000
19-Jan-22 19-Jan-25 $1.48
1,000,000
1,000,000
1,000,000
14-Oct-21 25-Oct-24
$0.57
2,000,000
2,000,000
2,000,000
26-Apr-22 26-Apr-25
$1.42
1,036,122
1,036,122
1,036,122
26-Apr-22 26-Apr-25
20-Jul-22 20-Jul-25
$1.42
$0.70
26-Aug-22 26-Aug-25 $1.42
1,036,122
1,000,000
1,000,000
1,036,122
1,000,000
1,000,000
1,036,122
1,000,000
1,000,000
12-Sep-22 15-Jun-25 $0.75
280,000
280,000
280,000
Option issued to Director
15-Sep-22 15-Sep-27 $1.13
- 4,000,000
4,000,000
12-Sep-22 15-Jun-25 $0.75
1,260,000
1,260,000
1,260,000
4,000,000
24-Oct-22 24-Oct-25
$1.00
1,500,000
1,500,000
1,500,000
24-Oct-22 24-Oct-25
10-Oct-22 10-Oct-27
$1.00
$0.99
1,500,000
500,000
1,500,000
1,500,000
500,000
500,000
4,010,000
4,010,000
4,010,000
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
75,000
300,000
50,000
851,700
75,000
100,000
150,000
882,352
75,000
300,000
50,000
851,700
75,000
100,000
150,000
882,352
- 1,000,000
1,000,000
- 1,145,692
1,145,692
12-Sep-22 15-Jun-25 $0.75
14-Nov-22 14-Nov-27 $1.17
11-Oct-22 11-Oct-27
$0.99
11-Nov-22 21-Nov-27 $1.06
1-Jan-23
9-Jan-23
1-Jan-27
9-Jan-27
$0.83
$0.80
11-Jan-23 11-Jan-27 $0.84
16-Jan-23 16-Jan-27 $0.83
1-Feb-23 1-Feb-27
1-Apr-23
1-Apr-27
$0.82
$0.45
20-Jun-23 20-Jun-27 $0.31
75,000
300,000
50,000
851,700
1,000,000
75,000
100,000
1,145,692
150,000
882,352
32,352,988 23,223,244
23,223,244 9,129,744
9,129,744
(h) 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.
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
94
Lake Resources NL
Note to the consolidated financial statements
30 June 2023
16 Equity - reserves
Change in proportionate interest reserve
Capital profits reserve
Performance rights and restricted stock units reserve
Foreign currency translation reserve
Option reserves
Total equity reserves
2023
$
2022
$
(8,464,134)
4,997
2,084,990
(7,988,445)
20,876,359
6,513,767
-
4,997
970,130
465,152
8,068,140
9,508,419
(a) Change in proportionate interest reserve
The change in proportionate interest reserve is used to recognise differences between the amount by which
non-controlling interests are adjusted and any consideration paid or received which may arise as a result of
transactions with non-controlling interests that do not result in a loss of control.
(b) Capital profits reserve
The capital profits reserve records non-taxable profits on sale of investments.
(c) 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.
(d) Performance rights and restricted stock unit reserve
The performance right and restricted stock unit reserve is to recognise the fair value of performance right and
restricted stock unit issued for share based payment to employees and service providers in relation to the supply of
goods or services. Once performance right or restricted stock unit in a series have all been exercised or have
expired, the reserve related to those performance right and restricted stock unit is transferred to accumulated losses.
(e) Foreign currency translation reserve
The foreign currency translation reserve recognises exchange differences arising from the translation of the financial
statements of foreign operations to Australian dollars. In the current year, the US office became operational, there
was material movement arising from the hyperinflationary effect of the ARS to the Consolidated entity's consolidated
financial report, and increase in Exploration & Evaluation and operational activities in that region during the year.
95
107107
Lake Resources NL
Note to the consolidated financial statements
30 June 2023
16 Equity - reserves (continued)
(f) Movements in reserves
Movements in each class of reserve during the current and previous financial year are set out below:
Capital profit
reserve
$
Note
Option
reserve
$
Performance
rights and
restricted
stock units
reserve
$
Change in
proportionate
interest
reserve
$
At 1 July 2021
4,997
2,625,776
345,000
Issue of unlisted options
Transfer from option
reserve to accumulated
losses on broker options
expiry/exercise
Other comprehensive
income
Share-based payment -
fee for service
Vesting of performance
rights to Directors
At 30 June 2022
-
-
-
-
-
4,997
9,711,684
(6,069,780)
-
1,800,461
-
8,068,141
-
-
-
-
625,129
970,129
-
-
-
-
-
-
-
Capital profit
reserve
$
Note
Option
reserve
$
Performance
rights and
restricted
stock units
reserve
$
Change in
proportionate
interest
reserve
$
At 1 July 2022
4,997
8,068,141
970,129
Foreign
currency
translation
reserve
$
Total other
reserves
$
388,818
3,364,591
-
-
9,711,684
(6,069,780)
76,334
76,334
-
1,800,461
-
465,152
625,129
9,508,419
Foreign
currency
translation
reserve
$
Total other
reserves
$
465,152
9,508,419
-
-
3,489,696
(2,641,312)
(8,453,597)
(8,453,597)
-
-
13,132,162
(8,464,134)
3,489,696
(2,641,312)
-
-
-
-
11,959,835
1,172,327
-
-
-
-
-
-
-
-
-
-
-
-
(8,464,134)
-
4,997
-
20,876,360
(57,467)
2,084,989
-
(8,464,134)
-
(7,988,445)
(57,467)
6,513,767
96
Issue of unlisted options
Transfer from option
reserve to accumulated
losses on broker options
expiry/exercise
Other comprehensive
income
Share-based payment -
fee for service
Change in interest in
controlled entity
Unwinding performance
rights to Directors
At 30 June 2023
108
LAKE RESOURCES ANNUAL REPORT 2023 Lake Resources NL
30 June 2023
Note to the consolidated financial statements
16 Equity - reserves (continued)
(f) Movements in reserves
Movements in each class of reserve during the current and previous financial year are set out below:
Performance
rights and
Change in
restricted
proportionate
Capital profit
reserve
$
Note
Option
reserve
$
stock units
reserve
$
interest
reserve
Foreign
currency
translation
reserve
$
Total other
reserves
$
At 1 July 2021
4,997
2,625,776
345,000
388,818
3,364,591
Issue of unlisted options
Transfer from option
reserve to accumulated
losses on broker options
expiry/exercise
Other comprehensive
income
Share-based payment -
fee for service
Vesting of performance
rights to Directors
At 30 June 2022
Issue of unlisted options
Transfer from option
reserve to accumulated
losses on broker options
expiry/exercise
Other comprehensive
income
Share-based payment -
fee for service
Change in interest in
controlled entity
Unwinding performance
rights to Directors
At 30 June 2023
4,997
8,068,141
625,129
970,129
Performance
rights and
Change in
restricted
proportionate
Capital profit
reserve
$
Note
Option
reserve
$
stock units
reserve
$
interest
reserve
465,152
Foreign
currency
translation
reserve
$
At 1 July 2022
4,997
8,068,141
970,129
465,152
9,508,419
-
-
-
-
-
-
-
-
-
-
-
9,711,684
(6,069,780)
1,800,461
-
-
3,489,696
(2,641,312)
-
-
-
-
-
-
-
-
-
-
-
$
-
-
-
-
-
-
-
-
-
-
-
-
$
-
(8,453,597)
(8,453,597)
11,959,835
1,172,327
(8,464,134)
(57,467)
4,997
20,876,360
2,084,989
(8,464,134)
(7,988,445)
6,513,767
-
-
-
-
-
-
-
-
-
9,711,684
(6,069,780)
1,800,461
625,129
9,508,419
Total other
reserves
$
3,489,696
(2,641,312)
13,132,162
(8,464,134)
(57,467)
96
Lake Resources NL
Note to the consolidated financial statements
30 June 2023
17 Earnings per share
2023
$
2022
$
Profit/(loss) after income tax attributable to the owners of Lake Resources NL
(45,754,115)
(5,683,093)
Number
Number
Weighted average number of ordinary shares used in calculating basic and diluted
earnings per share
1,403,395,825 1,120,917,048
Weighted average number of ordinary shares used in calculating diluted earnings per
share
1,403,395,825 1,120,917,048
76,334
76,334
Basic earnings/(loss) per share
Diluted earnings/(loss) per share
Cents
Cents
(3.26)
(0.51)
(3.26)
(0.51)
Options over ordinary shares are considered potential ordinary shares. For the year ended 30 June 2023, 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 16 and . Earnings per share for the year is 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.
18 Dividends
There were no dividends paid, recommended or declared during the current or previous financial year.
97
109109
Lake Resources NL
Note to the consolidated financial statements
30 June 2023
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 - options (Note 19 (a)(i))
Capitalised as equity transaction cost (Note 19 (b))
Expensed to profit or loss - RSU (Note 19 (a)(iv))
Expensed to profit or loss - performance shares (Note 19 (a)(iii))
Total
Adjusted to equity
Reserve
Share capital
Total
2023
$
2022
$
11,959,835
3,489,696
1,116,628
(57,467)
16,508,692
2,425,591
9,711,684
-
-
12,137,275
16,508,692
-
16,508,692
2,425,591
9,711,684
12,137,275
(a) Expensed to Profit or Loss
During the year equity-settled share-based payment transactions for the payment for fees and services, expensed
through profit or loss, occurred as follows:
Options issued to brokers and consultants
Options issued to directors, executives and employees (Note 20 (b))
2023
$
2022
$
8,768,375
3,191,460
11,959,835
-
2,425,591
2,425,591
(i) Suppliers options
During the period 10,000,000 options and remuneration were granted as equity-settled share-based payment
transactions for the payment of fees and services, expensed through profit or loss and were determined using Black
Scholes methodology utilising the following assumptions:
Grant date
Number of options
granted
Expiry date
Exercise price
Fair value at grant
date
Expensed $
24-Oct-22
24-Oct-22
12-Sep-22
12-Sep-22
12-Sep-22
Total
1,500,000
1,500,000
5,460,000
280,000
1,260,000
10,000,000
24-Oct-25
24-Oct-25
15-Jun-25
15-Jun-25
15-Jun-25
$1.000
$1.000
$0.750
$0.750
$0.750
$1.080
$1.080
$1.260
$1.260
$1.260
1,117,581
1,117,581
5,095,906
261,329
1,175,978
8,768,375
110
98
LAKE RESOURCES ANNUAL REPORT 2023 Lake Resources NL
30 June 2023
Note to the consolidated financial statements
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:
Lake Resources NL
Note to the consolidated financial statements
30 June 2023
19 Share-based payments (continued)
(a) Expensed to Profit or Loss (continued)
(i) Suppliers options (continued)
Expensed to profit or loss - options (Note 19 (a)(i))
Capitalised as equity transaction cost (Note 19 (b))
Expensed to profit or loss - RSU (Note 19 (a)(iv))
Expensed to profit or loss - performance shares (Note 19 (a)(iii))
Total
Adjusted to equity
Reserve
Share capital
Total
During the year equity-settled share-based payment transactions for the payment for fees and services, expensed
(a) Expensed to Profit or Loss
through profit or loss, occurred as follows:
Options issued to brokers and consultants
Options issued to directors, executives and employees (Note 20 (b))
(i) Suppliers options
During the period 10,000,000 options and remuneration were granted as equity-settled share-based payment
transactions for the payment of fees and services, expensed through profit or loss and were determined using Black
Scholes methodology utilising the following assumptions:
Number of options
Fair value at grant
Grant date
granted
Expiry date
Exercise price
date
Expensed $
24-Oct-22
24-Oct-22
12-Sep-22
12-Sep-22
12-Sep-22
Total
1,500,000
1,500,000
5,460,000
280,000
1,260,000
10,000,000
24-Oct-25
24-Oct-25
15-Jun-25
15-Jun-25
15-Jun-25
$1.000
$1.000
$0.750
$0.750
$0.750
$1.080
$1.080
$1.260
$1.260
$1.260
1,117,581
1,117,581
5,095,906
261,329
1,175,978
8,768,375
2023
$
2022
$
11,959,835
3,489,696
1,116,628
(57,467)
2,425,591
9,711,684
-
-
16,508,692
12,137,275
16,508,692
-
2,425,591
9,711,684
16,508,692
12,137,275
2023
$
8,768,375
3,191,460
11,959,835
2022
$
-
2,425,591
2,425,591
98
Grant date
Vesting Date
Share Price at grant date
Exercise (Strike) Price
Time to Maturity (in years)
Annual Risk-Free Rate
Annualised Volatility
24-Oct-22
24-Oct-22
$1.080
$1.000
3
3.6%
109.949%
24-Oct-22
24-Oct-22
$1.080
$1.000
3
3.6%
109.949%
12-Sep-22
12-Sep-22
$1.260
$0.750
2.76
3.24%
109.949%
12-Sep-22
12-Sep-22
$1.260
$0.750
2.76
3.24%
109.949%
12-Sep-22
12-Sep-22
$1.260
$0.750
2.76
3.24%
109.949%
The options vested immediately, and some were exercised at period end. For the period ended 30 June 2023,
$8,768,375 (2022: $1,800,461) was recognised as an expense in the profit or loss.
These options issued to Directors, Key Management Personnel and a senior management staff as part of Lake's
Resources Employee Award Program approved during the period are detailed in Note 20.
(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:
Number of
Rights
granted Grant date Expiry date
15-Aug-24
5,000,000 15-Aug-19
15-Aug-24
5,000,000 15-Aug-19
15-Aug-24
5,000,000 15-Aug-19
Converted
to Shares
Forfeited
-
(2,500,000) (2,500,000)
(5,000,000)
Fair value
at grant
date
$0.0575
$0.0575
$0.0575
15,000,000
Expensed
2023
-
-
-
-
Expensed
2022
273,125
(7,188)
107,813
373,750
Name
S. Crow
S. Promnitz
N. Lindsay
Total
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 2023 $nil
(2022: $373,750) was expensed in the profit or loss. The expense calculation recognises the probability of the
performance hurdles being achieved.
99
111111
Lake Resources NL
Note to the consolidated financial statements
30 June 2023
19 Share-based payments (continued)
(a) Expensed to Profit or Loss (continued)
(iii) Performance shares issued to Directors and other Key Management Personnel
Grant date
22-Feb-22
22-Feb-22
22-Feb-22
22-Feb-22
22-Feb-22
22-Feb-22
22-Feb-22
24-Feb-22
12-Sep-22
12-Sep-22
12-Sep-22
Number of
rights/ shares
granted
123,809
139,285
167,142
250,714
92,343
147,749
147,749
73,874
33,058
39,669
92,563
1,307,955
Expiry date
12-Dec-22
12-Mar-23
12-Sep-23
12-Sep-24
1-Jun-22
1-Jun-22
1-Mar-23
1-Mar-24
22-Jan-24
22-Jan-24
22-Nov-24
Converted to
shares
Expired
Fair value at
grant date
Expensed 2023
$
-
-
-
-
-
-
147,749
-
-
-
147,749
123,809
139,285
-
-
92,343
147,749
-
73,874
-
-
-
577,060
$0.090
$0.090
$0.090
$0.090
$0.090
$0.090
$0.090
$0.090
$1.210
$1.210
$1.210
-
-
-
-
-
-
-
(71,823)
14,356
-
-
(57,467)
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 2023,
$71,823 (2022: $251,379) was credited in the profit or loss to unwind forfeited performance shares. The expense
calculation recognises the probability of the performance hurdles being achieved.
112
100
LAKE RESOURCES ANNUAL REPORT 2023 Lake Resources NL
30 June 2023
Note to the consolidated financial statements
19 Share-based payments (continued)
(a) Expensed to Profit or Loss (continued)
(iii) Performance shares issued to Directors and other Key Management Personnel
Number of
rights/ shares
Grant date
granted
Expiry date
shares
Expired
grant date
$
Converted to
Fair value at
Expensed 2023
22-Feb-22
22-Feb-22
22-Feb-22
22-Feb-22
22-Feb-22
22-Feb-22
22-Feb-22
24-Feb-22
12-Sep-22
12-Sep-22
12-Sep-22
123,809
139,285
167,142
250,714
92,343
147,749
147,749
73,874
33,058
39,669
92,563
12-Dec-22
12-Mar-23
12-Sep-23
12-Sep-24
1-Jun-22
1-Jun-22
1-Mar-23
1-Mar-24
22-Jan-24
22-Jan-24
22-Nov-24
-
-
-
-
-
-
-
-
-
123,809
139,285
92,343
147,749
73,874
-
-
-
-
-
-
147,749
$0.090
$0.090
$0.090
$0.090
$0.090
$0.090
$0.090
$0.090
$1.210
$1.210
$1.210
-
-
-
-
-
-
-
-
-
(71,823)
14,356
1,307,955
147,749
577,060
(57,467)
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 2023,
$71,823 (2022: $251,379) was credited in the profit or loss to unwind forfeited performance shares. The expense
calculation recognises the probability of the performance hurdles being achieved.
Lake Resources NL
Note to the consolidated financial statements
30 June 2023
19 Share-based payments (continued)
(a) Expensed to Profit or Loss (continued)
(iii) Performance shares issued to Directors and other Key Management Personnel (continued)
Position
Number
of rights
granted
123,809
Chief Finance
Officer
139,285
167,142
250,714
92,343
147,749
147,749
73,874
33,058
39,669
92,563
Former
Technical
Director
SVP Field
Development
& Evaluation
Performance measure
Measurement
date
Directors judgement at 30 June
2023
Delivering and operating a comprehensive
reporting package for the debt financiers and
potential J.V. partners post close of the Kachi
Project finance and closing of debt financing
for the Company’s Kachi Project (60%).
Delivering and operating a comprehensive
reporting package for the debt financiers and
potential J.V. 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
Delivery of the Kachi Project into production
with appropriate reporting mechanisms in
place
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
The Company closing the debt and equity
financing for the Company’s Kachi Project on
terms satisfactory to the Company
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
Public announcement of a maiden JORC
resource at any of the Cauchari, Olaroz or
Paso de Jama
Public announcement of a second maiden
resource at any of Cauchari, Olaroz or Paso
de Jama
Successful completion of a Preliminary
Economic Assessment (PEA) or Prefeasibility
Study (PFS) at any of Cauchari, Olaroz or
Paso de Jama prospects
12-Oct-22
This milestone was not be met by 12
October 2022. Nil expense recorded
as expired.
12-Jan-23
This milestone was not met by 12
January 2023. Nil expense recorded.
12-Jul-23
In the Director's judgement, this
milestone will not be met by 12 July
2023. Nil expense recorded.
12-Jul-24
1-Apr-22
1-Apr-22
In the Director's judgement, this
milestone will not be met by 12 July
2024. Nil expense recorded.
This tranche has vested in prior year,
not exercised as a result of his
resignation.
This tranche have vested- in prior
year, not exercised as a result of his
resignation.
1-Jan-23
This was converted to shares at nil
value during the year.
1-Jan-24
This has not vested as at his
resignation. $71,823 expense
recognised in prior year was
unwinding.
22-Nov-23
$14,356 expenses was recognised
22-Nov-23
22-Aug-24
In the Directors judgement, this
milestones will not be met by
measurement date.
In the Director's judgement, this
milestone will not be met by 22 August
2024.
100
101
113113
Lake Resources NL
Note to the consolidated financial statements
30 June 2023
19 Share-based payments (continued)
(a) Expensed to Profit or Loss (continued)
(iii) Performance shares issued to Directors and other Key Management Personnel (continued)
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 2023,
$71,823 (2022: $373,750) was credited in the profit or loss unwinding prior expenses recognised. During the year
$14,356 was recognised as expenses in the year, for performance shares issued during the year. The expense
calculation recognises the probability of the performance hurdles being achieved.
(iv) Restricted Stock Unit issued as part of employee benefit
Restricted Stock Unit issued under employee award plan (expensed)
Restricted Stock Unit issued under employee award plan (capitalized portion)
2023
$
1,116,628
55,699
1,172,327
2022
$
-
-
-
Refer to details of Restricted Stock Unit issued to Note 20.
(b) Capitalised as equity transaction cost
Shares under option granted to brokers and investor relations consultants in the prior period and continued to vest
following these vesting conditions;
(a)
(b)
(c)
(d)
Tranche 1 - 10 million options which vest on the date the Company achieves a 5-day VWAP prior to the
Expiry Date of A$0.55 or above.
Tranche 2 - 10 million options which vest on the date the Company achieves a 5-day VWAP prior to the
Expiry Date of A$0.70 or above.
Tranche 3 - 10 million options which vest on the date the Company achieves a 5-day VWAP prior to the
Expiry Date of A$0.85 or above.
Tranche 4 - 5 million options which vest on the date the Company achieves a 5-day VWAP prior to the
Expiry Date of A$1.25 or above.
Grant date
Vesting date
Share Price at grant date
Exercise (Strike) Price
Time to Maturity (in years)
Annual Risk-Free Rate
Annualised Volatility
Tranche 1
Tranche 2
Tranche 3
Tranche 4
16-July-21
14-Mar-23
$0.385
$0.55
3
0.15%
109.817%
16-July-21
28-Sep-23
$0.385
$0.55
3
0.15%
109.817%
16-July-21
21-Jan-24
$0.385
$0.55
3
0.15%
109.817%
16-July-21
22-Jun-24
$0.385
$0.55
3
0.15%
109.817%
114
102
LAKE RESOURCES ANNUAL REPORT 2023 Lake Resources NL
Note to the consolidated financial statements
30 June 2023
19 Share-based payments (continued)
(b) Capitalised as equity transaction cost (continued)
Canacord Tranch 1
Canacord Tranch 2
Canacord Tranch 3
Canacord Tranch 4
Total
Grant
date
Expiry date
16-Jul-21 31-Dec-24
16-Jul-21 31-Dec-24
16-Jul-21 31-Dec-24
16-Jul-21 31-Dec-24
Exercise
price
$0.55
$0.55
$0.55
$0.55
Granted
10,000,000
10,000,000
10,000,000
5,000,000
35,000,000
Charged to
Equity
1,014,528
1,093,107
968,375
413,686
3,489,696
20 Employee option and restricted stock unit plan
The establishment of the Employee Award Scheme was approved by shareholders at the 2022 Annual General
Meeting. The Employee Award Plan is designed to provide long-term incentives for senior managers and above
(including executive directors) to deliver long-term shareholders returns.
Under the plan, participants are granted options and restricted stock units which vest in 25% increments on each of
the first four anniversaries of the commencement date, subject to the participant continuing an employee of Lake
Resources through the applicable vesting date; where a change in control occurs while still employed by the
company, any then un-vested RSU’s and options shall immediately vest.
Options and Restricted Stock Unit granted under the plan are for no consideration and carry no dividend or voting
rights.
(a) Restricted stock units (RSU)
Restricted Stock Unit granted under the plan for are no consideration and carry no dividend or voting rights.
The terms and conditions of restricted stock units on issue at 30 June 2023 affecting remuneration of directors and
other key management personnel in this financial period or reporting period are as follows:
103
115115
Lake Resources NL
Note to the consolidated financial statements
30 June 2023
20 Employee option and restricted stock unit plan (continued)
(a) Restricted stock units (RSU) (continued)
Vesting date
15-Sep-23
15-Sep-24
15-Sep-25
15-Sep-26
11-Oct-23
11-Oct-24
11-Oct-25
11-Oct-26
10-Oct-23
10-Oct-24
10-Oct-25
10-Oct-26
1-Dec-23
2-Dec-23
14-Nov-23
14-Nov-24
14-Nov-25
14-Nov-26
4-Nov-23
4-Nov-24
4-Nov-25
4-Nov-26
1-Jan-24
1-Jan-25
1-Jan-26
1-Jan-27
11-Jan-24
11-Jan-25
11-Jan-26
11-Jan-27
16-Jan-24
16-Jan-25
16-Jan-26
16-Jan-27
1-Feb-24
1-Feb-25
1-Feb-26
1-Feb-27
1-April-24
1-April-25
1-April-26
1-April-27
20-Jun-24
20-Jun-25
20-Jun-26
20-Jun-27
Number of units allotted
250,000
250,000
250,000
250,000
25,000
25,000
25,000
25,000
37,500
37,500
37,500
37,500
232,500
232,500
18,750
18,750
18,750
18,750
12,500
12,500
12,500
12,500
354,338
115,838
115,838
115,838
18,750
18,750
18,750
18,750
12,500
12,500
12,500
12,500
220,474
220,474
220,474
220,474
37,500
37,500
37,500
37,500
110,294
110,294
110,294
110,294
4,139,924
Fair value price
$0.930
$0.930
$0.930
$0.930
$0.990
$0.990
$0.990
$0.990
$0.990
$0.990
$0.990
$0.990
$1.005
$1.030
$1.180
$1.180
$1.180
$1.180
$1.070
$1.070
$1.070
$1.070
$0.800
$0.800
$0.800
$0.800
$0.840
$0.840
$0.840
$0.840
$0.825
$0.825
$0.825
$0.825
$0.815
$0.815
$0.815
$0.815
$0.445
$0.445
$0.445
$0.445
$0.305
$0.305
$0.305
$0.305
Valuation $
232,500
232,500
232,500
232,500
24,750
24,750
24,750
24,750
37,125
37,125
37,125
37,125
233,663
239,475
22,125
22,125
22,125
22,125
13,375
13,375
13,375
13,375
283,470
92,670
92,670
92,670
15,656
15,656
15,656
15,656
10,313
10,313
10,313
10,313
179,686
179,686
179,686
179,686
16,688
16,688
16,688
16,688
33,640
33,640
33,640
33,640
3,378,048
104
Grant date
15-Sep-22
11-Oct-22
10-Oct-22
1-Dec-22
2-Dec-22
14-Nov-22
4-Nov-22
1-Jan-23
11-Jan-23
16-Jan-23
1-Feb-23
1-April-23
20-Jun-23
116
LAKE RESOURCES ANNUAL REPORT 2023 Lake Resources NL
30 June 2023
Note to the consolidated financial statements
Lake Resources NL
Note to the consolidated financial statements
30 June 2023
20 Employee option and restricted stock unit plan (continued)
20 Employee option and restricted stock unit plan (continued)
(a) Restricted stock units (RSU) (continued)
Grant date
Vesting date
Number of units allotted
Fair value price
Valuation $
15-Sep-22
11-Oct-22
10-Oct-22
1-Dec-22
2-Dec-22
14-Nov-22
4-Nov-22
1-Jan-23
11-Jan-23
16-Jan-23
1-Feb-23
1-April-23
20-Jun-23
15-Sep-23
15-Sep-24
15-Sep-25
15-Sep-26
11-Oct-23
11-Oct-24
11-Oct-25
11-Oct-26
10-Oct-23
10-Oct-24
10-Oct-25
10-Oct-26
1-Dec-23
2-Dec-23
14-Nov-23
14-Nov-24
14-Nov-25
14-Nov-26
4-Nov-23
4-Nov-24
4-Nov-25
4-Nov-26
1-Jan-24
1-Jan-25
1-Jan-26
1-Jan-27
11-Jan-24
11-Jan-25
11-Jan-26
11-Jan-27
16-Jan-24
16-Jan-25
16-Jan-26
16-Jan-27
1-Feb-24
1-Feb-25
1-Feb-26
1-Feb-27
1-April-24
1-April-25
1-April-26
1-April-27
20-Jun-24
20-Jun-25
20-Jun-26
20-Jun-27
250,000
250,000
250,000
250,000
25,000
25,000
25,000
25,000
37,500
37,500
37,500
37,500
232,500
232,500
18,750
18,750
18,750
18,750
12,500
12,500
12,500
12,500
354,338
115,838
115,838
115,838
18,750
18,750
18,750
18,750
12,500
12,500
12,500
12,500
220,474
220,474
220,474
220,474
37,500
37,500
37,500
37,500
110,294
110,294
110,294
110,294
$0.930
$0.930
$0.930
$0.930
$0.990
$0.990
$0.990
$0.990
$0.990
$0.990
$0.990
$0.990
$1.005
$1.030
$1.180
$1.180
$1.180
$1.180
$1.070
$1.070
$1.070
$1.070
$0.800
$0.800
$0.800
$0.800
$0.840
$0.840
$0.840
$0.840
$0.825
$0.825
$0.825
$0.825
$0.815
$0.815
$0.815
$0.815
$0.445
$0.445
$0.445
$0.445
$0.305
$0.305
$0.305
$0.305
232,500
232,500
232,500
232,500
24,750
24,750
24,750
24,750
37,125
37,125
37,125
37,125
233,663
239,475
283,470
22,125
22,125
22,125
22,125
13,375
13,375
13,375
13,375
92,670
92,670
92,670
15,656
15,656
15,656
15,656
10,313
10,313
10,313
10,313
179,686
179,686
179,686
179,686
16,688
16,688
16,688
16,688
33,640
33,640
33,640
33,640
104
4,139,924
3,378,048
(a) Restricted stock units (RSU) (continued)
Under the plan, participants are granted restricted stock units which vest in 25% increments on each of the first four
anniversaries of the commencement date. Each 25% is treated as a separate award on the grounds that the different
vesting periods will mean that the four tranches of the award have different fair values and are accounted for with
graded vesting.
These RSU's have been valued using the assumptions below:
•
•
•
The exercise price is based on fair value of share price at grant date;
The restricted stock units have varying grant dates being the dates on which the employee commenced
employment with the company. The share price at each grant date has been taken from the closing price on the
ASX on the grant date or the previous trading day; and
Any employees who cease employment prior to 100% of their rights vesting are subject to forfeit remaining
unvested shares.
Grant date
15-Sept-22
10-Oct-22
11-Oct-22
4-Nov-22
14-Nov-22
1-Dec-22
2-Dec-22
1-Jan-23
11-Jan-23
16-Jan-23
1-Feb-23
1-April-23
20-Jun-23
Number of RSUs
granted
Expiry date Exercise price
Fair value at grant
date
Expensed $
1,000,000
150,000
100,000
50,000
75,000
232,500
232,500
701,852
75,000
50,000
881,896
150,000
441,176
4,139,924
15-Sep-26
10-Oct-27
11-Oct-27
4-Nov-26
14-Nov-27
1-Dec-23
2-Dec-23
1-Jan-27
11-Jan-27
16-Jan-27
1-Feb-27
1-April-27
20-Jun-27
-
-
-
-
-
-
-
-
-
-
-
-
-
$0.930
$0.995
$0.990
$1.070
$1.180
$1.030
$1.030
$0.800
$0.835
$0.825
$0.815
$0.445
$0.305
381,979
55,699
36,992
18,159
28,777
135,076
137,780
189,772
15,183
9,707
152,730
8,556
1,916
1,172,327
105
117117
Lake Resources NL
Note to the consolidated financial statements
30 June 2023
20 Employee option and restricted stock unit plan (continued)
(b) Options
The terms and conditions of options on issue at 30 June 2023 affecting remuneration of Directors and other key
management personnel (Note ) and employees in this financial period or reporting period are as follows:
Grant date
Number of options
granted
20-Jul-22
22-Aug-22
15-Sept-22
10-Oct-22
11-Oct-22
14-Nov-22
21-Nov-22
1-Jan-23
9-Jan-23
11-Jan-23
16-Jan-23
1-Feb-23
1-April-23
16-Jun-23
1,000,000
1,000,000
4,000,000
500,000
300,000
75,000
50,000
851,700
1,000,000
75,000
100,000
1,145,689
150,000
882,353
11,129,742
Expiry date Exercise price
$0.700
$1.500
$1.130
$0.995
$0.990
$1.175
$1.060
$0.800
$0.830
$0.835
$0.825
$0.815
$0.445
$0.460
20-Jul-25
22-Aug-25
15-Sep-27
10-Oct-27
11-Oct-27
14-Nov-27
21-Nov-27
1-Jan-28
9-Jan-28
11-Jan-28
16-Jan-28
1-Feb-28
1-April-28
16-Jun-28
Fair value
Expensed $
$0.700
$1.500
$1.130
$0.995
$0.990
$1.175
$1.060
$0.800
$0.840
$0.835
$0.810
$0.815
$0.445
$0.460
467,117
775,093
1,184,388
147,659
87,893
22,654
13,198
137,785
160,113
11,941
15,252
155,394
6,586
6,387
3,191,460
Under the plan, participants are granted options which vest in 25% increments on each of the first four anniversaries
of the commencement date. These options have been valued using both the Black-Scholes model with the following
assumptions:
•
•
The exercise price is based on fair value of share price at grant date; and
The options have varying grant dates being the dates on which the employee commenced employment with the
company. The share price at each grant date has been taken from the closing price on the ASX on the grant date
or the previous trading day.
Grant date
Vesting Date
Share Price at grant date
Exercise (Strike) Price
Time to Maturity (in years)
Annual Risk-Free Rate
Annualised Volatility
20-Jul-22
20-Jul-22
$0.700
$0.700
5
3.21%
108.18%
22-Aug-22
22-Aug-22
$1.210
$1.500
3
3.6%
109.949%
15-Sep-22
15-Sep-26
$0.925
$1.130
5
3.79%
109.949%
11-Oct-22
11-Oct-26
$0.990
$0.990
5
3.70%
107.70%
10-Oct-22
10-Oct-27
$0.995
$0.995
5
3.57%
107.70%
14-Nov-22
14-Nov-26
$1.175
$1.175
5
3.44%
107.7%
In August 2022, prior to the establishment of
immediately.
the plan two participants were awarded options which vested
118
106
LAKE RESOURCES ANNUAL REPORT 2023 Lake Resources NL
30 June 2023
Note to the consolidated financial statements
Lake Resources NL
Note to the consolidated financial statements
30 June 2023
20 Employee option and restricted stock unit plan (continued)
20 Employee option and restricted stock unit plan (continued)
(b) Options
The terms and conditions of options on issue at 30 June 2023 affecting remuneration of Directors and other key
management personnel (Note ) and employees in this financial period or reporting period are as follows:
Grant date
granted
Expiry date Exercise price
Fair value
Expensed $
Number of options
20-Jul-22
22-Aug-22
15-Sept-22
10-Oct-22
11-Oct-22
14-Nov-22
21-Nov-22
1-Jan-23
9-Jan-23
11-Jan-23
16-Jan-23
1-Feb-23
1-April-23
16-Jun-23
1,000,000
1,000,000
4,000,000
500,000
300,000
75,000
50,000
851,700
1,000,000
75,000
100,000
1,145,689
150,000
882,353
11,129,742
20-Jul-25
22-Aug-25
15-Sep-27
10-Oct-27
11-Oct-27
14-Nov-27
21-Nov-27
1-Jan-28
9-Jan-28
11-Jan-28
16-Jan-28
1-Feb-28
1-April-28
16-Jun-28
$0.700
$1.500
$1.130
$0.995
$0.990
$1.175
$1.060
$0.800
$0.830
$0.835
$0.825
$0.815
$0.445
$0.460
$0.700
$1.500
$1.130
$0.995
$0.990
$1.175
$1.060
$0.800
$0.840
$0.835
$0.810
$0.815
$0.445
$0.460
467,117
775,093
1,184,388
147,659
87,893
22,654
13,198
137,785
160,113
11,941
15,252
155,394
6,586
6,387
3,191,460
Under the plan, participants are granted options which vest in 25% increments on each of the first four anniversaries
of the commencement date. These options have been valued using both the Black-Scholes model with the following
assumptions:
•
•
The exercise price is based on fair value of share price at grant date; and
The options have varying grant dates being the dates on which the employee commenced employment with the
company. The share price at each grant date has been taken from the closing price on the ASX on the grant date
or the previous trading day.
Grant date
Vesting Date
Share Price at grant date
Exercise (Strike) Price
Time to Maturity (in years)
Annual Risk-Free Rate
Annualised Volatility
20-Jul-22
20-Jul-22
22-Aug-22
22-Aug-22
15-Sep-22
15-Sep-26
$0.700
$0.700
5
3.21%
$1.210
$1.500
3
3.6%
$0.925
$1.130
5
3.79%
108.18%
109.949%
109.949%
11-Oct-22
11-Oct-26
$0.990
$0.990
5
3.70%
107.70%
10-Oct-22
10-Oct-27
14-Nov-22
14-Nov-26
$0.995
$0.995
5
3.57%
107.70%
$1.175
$1.175
5
3.44%
107.7%
In August 2022, prior to the establishment of
the plan two participants were awarded options which vested
immediately.
(b) Options (continued)
Grant date
Vesting Date
Share Price at grant date
Exercise (Strike) Price
Time to Maturity (in years)
Annual Risk-Free Rate
Annualised Volatility
21-Nov-22 1-Jan-23 9-Jan-23 11-Jan-23 16-Jan-23 1-Feb-23 1-April-23 20-Jun-23
21-Nov-22 1-Jan-27 9-Jan-27 11-Jan-27 16-Jan-27 1-Feb-27 1-April-27 20-Jun-27
$0.305
$0.305
5
3.95%
107.7% 106.622% 106.622% 106.622% 106.622% 106.41% 103.16% 106.62%
$0.800
$0.800
5
3.7%
$0.830
$0.830
5
3.46%
$0.815
$0.815
5
3.30%
$0.835
$0.835
5
3.46%
$0.445
$0.445
5
3.03%
$1.060
$1.060
5
3.34%
$0.825
$0.825
5
3.32%
21 Financial instruments
Financial risk management objectives
The Consolidated entity's activities expose it to a variety of financial risks: market risk (including foreign currency risk,
price risk and interest rate risk), credit risk and liquidity risk. The Consolidated entity's overall risk management
program focuses on the unpredictability of financial markets and seeks to minimise potential adverse effects on the
financial performance of the Consolidated entity. The Consolidated entity uses different methods to measure different
types of risk to which it is exposed.
Risk management is carried out by the Board of Directors ('the Board'). These policies include identification and
analysis of the risk exposure of the Consolidated entity and appropriate procedures, controls and risk limits.
(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.
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.
The Group use a legal trading mechanism commonly known as the Gain on Electronic Payment Market (MEP Dollar)
in which the Argentinian subsidiary, Morena Del Valle SA and Minerales Australes SA buy Argentinian bonds in USD,
and then sell the bonds, via local banking broker in Argentina, for Argentinian Peso on the same day. This is to
enable the Group to fund working capital and exploration activities in its Argentinian operations. See Note 5 for further
information.
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
2023
$
2022
$
Liabilities
2023
$
2022
$
15,846,866
-
-
3,058,278
18,905,144
10,236,259
-
-
578,239
10,814,498
1,625,224
48,712
-
1,293,078
2,967,014
266,365
95,397
37,017
2,294,900
2,693,679
106
107
119119
Lake Resources NL
Note to the consolidated financial statements
30 June 2023
21 Financial instruments (continued)
(a) Foreign currency risk (continued)
A sensitivity analysis of the movement in exchange rate (based on the closing balance of the asset) is presented
below:
2023
AUD strengthen by 1%
AUD weaken by 1%
Impact on
Impact on
Profit before
tax
Equity
Profit before
tax
Equity
$
$
$
$
(156,900)
(16,091)
(48,712)
(12,803)
(30,280)
(264,786)
(101,349)
(2,637)
(945)
(367)
(22,722)
(5,725)
(133,745)
257,803
(257,803)
(161,651)
(20)
20
(161,651)
38,031
(38,031)
(25,772)
(63,262)
(11)
11
(89,034)
160,069
16,416
492
13,061
30,891
220,929
103,397
2,691
945
374
23,181
5,841
136,429
(252,698)
252,698
158,450
20
(20)
158,450
37,278
(37,278)
25,261
62,009
(11)
11
87,270
USD assets
USD liabilities
GBP liabilities
ARS liabilities
ARS assets
Total
2022
USD assets
USD liabilities
GBP liabilities
CAD liabilities
ARS liabilities
ARS assets
Total
(b) Price risk
The Consolidated entity is not exposed to any significant price risk.
Interest rate risk
(c)
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.
120
108
LAKE RESOURCES ANNUAL REPORT 2023 Lake Resources NL
30 June 2023
Note to the consolidated financial statements
21 Financial instruments (continued)
(a) Foreign currency risk (continued)
A sensitivity analysis of the movement in exchange rate (based on the closing balance of the asset) is presented
below:
2023
USD assets
USD liabilities
GBP liabilities
ARS liabilities
ARS assets
Total
2022
USD assets
USD liabilities
GBP liabilities
CAD liabilities
ARS liabilities
ARS assets
Total
(b) Price risk
AUD strengthen by 1%
AUD weaken by 1%
Impact on
Impact on
Profit before
Profit before
(264,786)
(161,651)
tax
$
(156,900)
(16,091)
(48,712)
(12,803)
(30,280)
(101,349)
(2,637)
(945)
(367)
(22,722)
(5,725)
(133,745)
Equity
$
257,803
(257,803)
(161,651)
(20)
20
38,031
(38,031)
(25,772)
(63,262)
(11)
11
(89,034)
tax
$
160,069
16,416
492
13,061
30,891
220,929
103,397
2,691
945
374
23,181
5,841
136,429
Equity
$
(252,698)
252,698
158,450
20
(20)
158,450
37,278
(37,278)
25,261
62,009
(11)
11
87,270
Currently the Consolidated entity does not have any external borrowings subject to variable rates and therefore has
The Consolidated entity is not exposed to any significant price risk.
(c)
Interest rate risk
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.
Lake Resources NL
Note to the consolidated financial statements
30 June 2023
21 Financial instruments (continued)
(d) Credit risk (continued)
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
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.
the Consolidated entity's remaining contractual maturity for its financial
Contractual maturities of financial
liabilities
Weighted
average
interest
rate
<1 year
1 - 2
years
2 - 5
years
30 June 2023
%
$
$
Remaining
contractual
maturities
$
> 5 years
$
$
Non-derivatives
Trade and Other payables
Lease liabilities
Total non-derivatives
30 June 2022
Non-derivatives
Trade and Other payables
Lease liabilities
Total non-derivatives
-10,773,518
348,354
-
-11,121,872
-
-
- 1,315,787
- 1,315,787
- 4,515,149
-
80,235
- 4,595,384
-
-
-
-
197,622
197,622
-
-
-
-
-
-
10,773,518
1,664,141
12,437,659
4,515,149
277,857
4,793,006
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.
108
109
121121
Lake Resources NL
Note to the consolidated financial statements
30 June 2023
22 Key management personnel disclosures
Directors fees and/or salary
Consulting fees
Annual leave
Other benefits - relocation cost
Short-term benefits
Total Short-term Benefits
Post-employment benefits (superannuation)
Long service leave
Share-based payments
Total Long-term Benefits
Total Remuneration
23 Remuneration of auditors
2023
$
2022
$
3,223,029
142,312
242,170
-
679,292
4,286,803
102,778
2,185
1,862,016
1,966,979
1,626,099
391,453
232,543
100,000
-
2,350,095
87,135
18,158
1,739,173
1,844,466
6,253,782
4,194,561
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
2023
$
2022
$
603,677
489,960
112,670
55,288
(b) Non-audit services
BDO provided non-audit services of $112,670 (2022: $55,288) during the financial year ended 30 June 2023. The
the provision of non-audit services is compatible with the general standard of
Directors are satisfied that
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.
122
110
LAKE RESOURCES ANNUAL REPORT 2023 Lake Resources NL
30 June 2023
Note to the consolidated financial statements
22 Key management personnel disclosures
Directors fees and/or salary
Consulting fees
Annual leave
Other benefits - relocation cost
Short-term benefits
Total Short-term Benefits
Long service leave
Share-based payments
Total Long-term Benefits
Total Remuneration
Post-employment benefits (superannuation)
23 Remuneration of auditors
auditor of the Consolidated entity.
(a) Audit services
Audit and review of financial statements
BDO Audit Pty Ltd
Other services
Tax compliance services
(b) Non-audit services
During the financial year the following fees were paid or payable for services provided by BDO Audit Pty Ltd, the
2023
$
2022
$
3,223,029
142,312
242,170
-
679,292
4,286,803
102,778
2,185
1,862,016
1,966,979
1,626,099
391,453
232,543
100,000
-
2,350,095
87,135
18,158
1,739,173
1,844,466
6,253,782
4,194,561
2023
$
2022
$
603,677
489,960
112,670
55,288
110
Lake Resources NL
Note to the consolidated financial statements
30 June 2023
24 Related party transactions
(a) Parent entities
Lake Resources NL is the parent entity.
(b) Subsidiaries
Interests in subsidiaries are set out in Note 27.
(c) Key management personnel
Disclosures relating to key management personnel are set out in Note 22 and the remuneration report included in the
Directors' report.
(d) 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 Mr.
Nicholas Lindsay (Director)
Consultancy services provided by former CFO Garry Gill (Executive)
Consultancy services provided by an entity associated with Amalia Saenz
(Director resigned 1 Feb 2023)
Receivable from and (payable to) related parties
Net advances to Mr Stephen Promnitz
(e) Terms and conditions
Disclosures relating to the advance to Mr Promnitz:
2023
$
2022
$
-
-
-
142,312
142,312
96,600
186,593
108,260
-
391,453
200,000
1,077,773
BDO provided non-audit services of $112,670 (2022: $55,288) during the financial year ended 30 June 2023. 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.
•
•
•
The outstanding balance at 30 June 2023 was $200,000 (2022: $1,077,773);
The terms and conditions at 30 June 2023 of the advances are unsecured and has no personal guarantees;
No provision for credit loss been recognised.
111
123123
Lake Resources NL
Note to the consolidated financial statements
30 June 2023
25 Parent entity financial information
(a) Summary financial information
Statement of financial position
Current assets
Total assets
Current liabilities
Total liabilities
Shareholders' equity
Issued capital
Reserves
Options reserve
Capital profits reserve
Performance rights reserve
Employee Award Program reserve( Restricted Stock Units)
Accumulated losses
Profit or loss for the year
Total comprehensive income
2023
$
2022
$
167,445,592
180,408,601
4,157,106
4,158,600
(339,538,487)
197,851,828
219,285,920
1,812,505
1,816,713
(413,508,530)
229,703,797
231,179,318
20,876,359
4,997
912,663
1,172,327
(76,420,142)
8,068,140
4,997
970,130
-
(22,753,377)
176,250,001
217,469,208
2023
$
(53,666,765)
2022
$
(8,712,948)
(53,666,765)
(8,712,948)
(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 2023 and 30 June 2022.
(c) Contingent liabilities
The parent entity had no contingent liabilities as at 30 June 2023 and 30 June 2022.
(d) Capital commitments - Property, plant and equipment
The parent entity had no capital commitments for property, plant and equipment as at 30 June 2023 and 30 June
2022.
(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; and
Dividends received from subsidiaries are recognised as other income by the parent entity.
124
112
LAKE RESOURCES ANNUAL REPORT 2023 Lake Resources NL
30 June 2023
Note to the consolidated financial statements
25 Parent entity financial information
(a) Summary financial information
Statement of financial position
Current assets
Total assets
Current liabilities
Total liabilities
Shareholders' equity
Issued capital
Reserves
Options reserve
Capital profits reserve
Performance rights reserve
Profit or loss for the year
Total comprehensive income
Employee Award Program reserve( Restricted Stock Units)
Accumulated losses
(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 2023 and 30 June 2022.
(c) Contingent liabilities
The parent entity had no contingent liabilities as at 30 June 2023 and 30 June 2022.
(d) Capital commitments - Property, plant and equipment
The parent entity had no capital commitments for property, plant and equipment as at 30 June 2023 and 30 June
2022.
(e) Significant accounting policies
1, except for the following:
The accounting policies of the parent entity are consistent with those of the Consolidated entity, as disclosed in note
•
•
•
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; and
Dividends received from subsidiaries are recognised as other income by the parent entity.
2023
$
2022
$
167,445,592
180,408,601
4,157,106
4,158,600
197,851,828
219,285,920
1,812,505
1,816,713
(339,538,487)
(413,508,530)
229,703,797
231,179,318
20,876,359
4,997
912,663
1,172,327
8,068,140
4,997
970,130
-
(76,420,142)
(22,753,377)
176,250,001
217,469,208
2023
$
2022
$
(53,666,765)
(8,712,948)
(53,666,765)
(8,712,948)
112
Lake Resources NL
Note to the consolidated financial statements
30 June 2023
26 Non-controlling interests
2023
$
2022
$
5,075,005
-
Proportion of ownership
interest and voting rights held
by the NCI
Total comprehensive
income allocated to NCI
Accumulated NCI
30 June 2023
30 June 2022 30 June 2023 30 June 2022 30 June 2023 30 June 2022
20%
-
(3,389,129)
-
5,075,005
-
Interest in:
Reserves
Name
Kachi Lithium Pty
Ltd
On 22 September 2021, Lake Resources NL and Lilac Solutions, Inc. entered 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 can achieve an equity stake in the Kachi project with certain corresponding project funding obligations,
while providing its leading technology to advance the project. During the period, Lilac Solution Kachi, LLC earned
10% interest in Kachi Lithium Pty Ltd upon commitment to provide funds.
On 17 April 2023, Lilac Solutions, Inc. earned additional 10% interest in Kachi Lithium Pty upon completion of a key
milestone relating to Lilac test work on-site. Details of the relevant phases and KPI as detailed below and this entitles
Lilac Solution to Class B shares.
113
125125
Lake Resources NL
Note to the consolidated financial statements
30 June 2023
26 Non-controlling interests (continued)
Details of the key milestones are highlighted below:
KPI
Phase 1 will commence on the "Effective Date" under
the Shareholders Agreement and end the day prior
to the day on which Phase 2 commences
The Oakland Chloride Product will be a “Lithium
in each case as
Carbonate Feed,” meaning that,
reported by Lilac and confirmed via sample analysis
by SGS S.A., ALS Limited, or a similar high quality
Third Party analytical
lab selected by Lilac (an
“Independent Lab”), it will have:
1. lithium content above 1 g/L;
calcium, and
2.
sodium, magnesium,
potassium (“Other Metal Cations”) content
less
than 3x higher than lithium content (e.g., if lithium
at 2 g/L, total Other Metal Cations must be less
than 6 g/L); and
3. iron and boron content each less than 1/10th
the lithium content (e.g. if lithium at 2 g/L, iron and
boron must each be below 0.2 g/L).
total
An Oakland Pilot Work test must demonstrate,
in
each case as reported by Lilac and confirmed via
sample analysis by an Independent Lab:
1.
lithium recovery above 80% for a brine
containing at least 250 mg_Li/L (if test is done on
a brine provided by Lake with less than 250
mg_Li/L, the required lithium recovery for this KPI
shall be reduced by 0.5% for every 1 mg_Li/L
below 250 mg_Li/L of the brine); and
2. production of a lithium chloride solution that is a
Lithium Carbonate Feed, as defined in the
specifications in 1 above.
1. Lilac completes at least 1,000 hours of operations
(including uptime, maintenance, monitoring, and
other work that constitutes operations as determined
by Lilac in its reasonable discretion) of the Lilac Pilot
Unit onsite at Kachi provided, however that this will
be deemed achieved if Lake fails to facilitate
operation of the Pilot Unit pursuant to clause 8.4; and
2. produces a Lithium Carbonate Feed (as defined in
the specifications in KPI 1 above) totalling at least
2,500 kg of lithium carbonate equivalents from onsite
operations (storage of this product will be Lake’s sole
responsibility and at Lake's sole cost).
Phase 3 will commence on the date on which the
Class B Shareholder satisfies the Phase 3 ( obtain
Tier 1 Product Qualification) and ends on the date of
conversion of the Class A Shares into Class A-1
Shares
Event
Commitment
fund
1
to provide
Preparation of the
Oakland Chloride Product
2
Lilac Test-Work in
Oakland to Support DFS
Lilac Test-Work On-Site
3
Product Qualification
126
Status
Achieved earned 10% stake in Kachi
Lithium Pty Ltd commitment to provide
fund
10
2023,
January
On
Lake
announced that Lilac has successfully
operated the Demonstration Plant for
and
1,000
consecutive
produced 40,000 litres of
lithium
chloride before 31 December 2022,
therefore has met all key testing
milestones in accordance with agreed
timeline.
hours
The lithium chloride eluate produced
by Lilac is in the process of being
shipped to Saltworks and converted
to lithium carbonate, after which it will
be independently tested for purity.
Testing results are expected Mid
March which may offer a 5% stake in
Kachi Lithium Pty Ltd if successful.
Last 10% milestone is earned upon
completion of 2500 kg LCE in full
lithium carbonate equivalent. This was
successfully achieved and announced
on 17 April 2023.
In progress
114
LAKE RESOURCES ANNUAL REPORT 2023 Lake Resources NL
30 June 2023
Note to the consolidated financial statements
26 Non-controlling interests (continued)
Details of the key milestones are highlighted below:
Preparation of the
“Independent Lab”), it will have:
Oakland Chloride Product
1. lithium content above 1 g/L;
to the day on which Phase 2 commences
fund
The Oakland Chloride Product will be a “Lithium
Carbonate Feed,” meaning that,
in each case as
reported by Lilac and confirmed via sample analysis
by SGS S.A., ALS Limited, or a similar high quality
Third Party analytical
lab selected by Lilac (an
2.
total
sodium, magnesium,
calcium, and
potassium (“Other Metal Cations”) content
less
than 3x higher than lithium content (e.g., if lithium
at 2 g/L, total Other Metal Cations must be less
than 6 g/L); and
3. iron and boron content each less than 1/10th
the lithium content (e.g. if lithium at 2 g/L, iron and
boron must each be below 0.2 g/L).
An Oakland Pilot Work test must demonstrate,
in
therefore has met all key testing
each case as reported by Lilac and confirmed via
milestones in accordance with agreed
sample analysis by an Independent Lab:
timeline.
1.
lithium recovery above 80% for a brine
containing at least 250 mg_Li/L (if test is done on
The lithium chloride eluate produced
a brine provided by Lake with less than 250
by Lilac is in the process of being
mg_Li/L, the required lithium recovery for this KPI
shipped to Saltworks and converted
Lilac Test-Work in
shall be reduced by 0.5% for every 1 mg_Li/L
to lithium carbonate, after which it will
2
Oakland to Support DFS
below 250 mg_Li/L of the brine); and
2. production of a lithium chloride solution that is a
Lithium Carbonate Feed, as defined in the
specifications in 1 above.
be independently tested for purity.
Testing results are expected Mid
March which may offer a 5% stake in
Kachi Lithium Pty Ltd if successful.
1. Lilac completes at least 1,000 hours of operations
Last 10% milestone is earned upon
(including uptime, maintenance, monitoring, and
completion of 2500 kg LCE in full
other work that constitutes operations as determined
lithium carbonate equivalent. This was
by Lilac in its reasonable discretion) of the Lilac Pilot
successfully achieved and announced
Unit onsite at Kachi provided, however that this will
on 17 April 2023.
be deemed achieved if Lake fails to facilitate
Lilac Test-Work On-Site
operation of the Pilot Unit pursuant to clause 8.4; and
2. produces a Lithium Carbonate Feed (as defined in
the specifications in KPI 1 above) totalling at least
2,500 kg of lithium carbonate equivalents from onsite
operations (storage of this product will be Lake’s sole
responsibility and at Lake's sole cost).
Phase 3 will commence on the date on which the
Class B Shareholder satisfies the Phase 3 ( obtain
conversion of the Class A Shares into Class A-1
Shares
3
Product Qualification
Tier 1 Product Qualification) and ends on the date of
In progress
114
1
Commitment
to provide
Phase 1 will commence on the "Effective Date" under
Achieved earned 10% stake in Kachi
the Shareholders Agreement and end the day prior
Lithium Pty Ltd commitment to provide
KPI
Status
Event
fund
Summarised financial information for Kachi Lithium Pty Ltd, before intra-group eliminations, is set out below:
2023
$
2022
$
Lake Resources NL
Note to the consolidated financial statements
30 June 2023
26 Non-controlling interests (continued)
Current asset
Non-current assets
Total assets
Current liabilities
Non-current liabilities
Total liabilities
On
10
January
2023,
Lake
announced that Lilac has successfully
operated the Demonstration Plant for
1,000
consecutive
hours
and
produced 40,000 litres of
lithium
chloride before 31 December 2022,
Equity attributable to owners of the parent
Non-controlling interest
ccc
Profit for the year attributable to owners of the parent
Loss for the year attributable to NCI
Profit for the year
7,995,496
114,597,171
122,592,667
71,875,092
151,461
72,026,553
50,566,113
6,965,205
1,044,655
(1,498,928)
(454,273)
Total comprehensive income for the year attributable to the owners of the parent
Total comprehensive income for the year attributable to NCI
Profit for the year
(8,340,036)
(3,389,129)
(11,729,165)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
115
127127
Lake Resources NL
Note to the consolidated financial statements
30 June 2023
27 Interests in subsidiaries
The consolidated financial statements incorporate the assets, liabilities and results of the following subsidiaries in
accordance with the accounting policy described in note 1:
Name of entity
Principal place of business/
Country of incorporation
Ownership interest
held by the group
Lith NRG Pty Ltd
Minerales Australes SA
Morena del Valle Minerals SA*
Lake Resources CRN Pty Ltd
Kachi Lithium Pty Ltd*
Lake Corporate FL LLC**
Lake Corporate Inc**
Australia
Argentina
Argentina
Australia
Australia
USA
USA
2023
%
100
100
80
100
80
100
100
2022
%
100
100
100
100
100
-
-
Ownership interest held
by non-controlling
interests
2023
%
2022
%
-
-
20
-
20
-
-
-
-
-
-
-
-
-
*
**
Refer to Note26 for details on the non-controlling interest on Kachi Lithium Pty Ltd which owns Morena del
Valle Minerals SA
Lake Corporate FL LLC and Lake Corporate Inc. were incorporated on 31 August 2022 as a wholly owned
subsidiaries of Lake Resources NL.
Kachi Lithium Pty Ltd (KLPL) was incorporated on 26 August 2021 as a wholly owned subsidiary of Lith NRG 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.
28 Events after the reporting period
No other matter or circumstance has arisen since 30 June 2023 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.
128
116
LAKE RESOURCES ANNUAL REPORT 2023 Lake Resources NL
30 June 2023
Note to the consolidated financial statements
27 Interests in subsidiaries
accordance with the accounting policy described in note 1:
Name of entity
Country of incorporation
held by the group
interests
Principal place of business/
Ownership interest
by non-controlling
Ownership interest held
2023
%
2022
%
20
20
-
-
-
-
-
-
-
-
-
-
-
-
2023
%
100
100
80
100
80
100
100
2022
%
100
100
100
100
100
-
-
Lith NRG Pty Ltd
Minerales Australes SA
Morena del Valle Minerals SA*
Lake Resources CRN Pty Ltd
Kachi Lithium Pty Ltd*
Lake Corporate FL LLC**
Lake Corporate Inc**
*
**
Valle Minerals SA
Australia
Argentina
Argentina
Australia
Australia
USA
USA
Refer to Note26 for details on the non-controlling interest on Kachi Lithium Pty Ltd which owns Morena del
Lake Corporate FL LLC and Lake Corporate Inc. were incorporated on 31 August 2022 as a wholly owned
subsidiaries of Lake Resources NL.
Kachi Lithium Pty Ltd (KLPL) was incorporated on 26 August 2021 as a wholly owned subsidiary of Lith NRG 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.
28 Events after the reporting period
No other matter or circumstance has arisen since 30 June 2023 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.
The consolidated financial statements incorporate the assets, liabilities and results of the following subsidiaries in
(a) Reconciliation of loss after income tax to net cash used in operating activities
Lake Resources NL
Note to the consolidated financial statements
30 June 2023
29 Cash flow information
Loss for the year
Adjustments for:
Depreciation and amortisation
Share-based payments (non cash)
Net proceeds from foreign exchange
Impairment of assets
Remeasurement of other financial asset
Unrealized gain or loss
Realized gain or loss
Change in operating assets and liabilities:
(Increase)/decrease in trade and other receivables
Increase/(decrease) in operating accruals
Increase in other current assets
Increase/(decrease) in trade and other payables
Increase in employee benefits
Net cash outflow from operating activities
Note
2023
$
2022
$
(47,253,042)
(5,683,093)
207,433
13,018,996
(43,696,631)
1,929,446
10,661,443
25,071,320
506,379
2,309,343
-
(1,134,068)
6,732,672
3,912,341
(27,734,368)
51,297
2,425,591
(9,356,830)
-
-
6,923,565
22,620
(6,323,722)
(91,732)
(119,271)
2,613,462
-
(9,538,113)
(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
Proceeds from issue of shares, net of transaction costs
2023
$
2022
$
(3,489,696)
(3,489,696)
(9,711,684)
(9,711,684)
116
117
129129
Lake Resources NL
Note to the consolidated financial statements
30 June 2023
29 Cash flow information (continued)
(b) Non-cash investing and financing activities (continued)
(ii) Reconciliation of net debt
Opening balance
Repayments - cash
Lease liability on inception
Interest and finance cost
Closing balance
30 Commitments
2023
$
277,857
(244,767)
1,456,920
182,834
1,672,844
2022
$
-
(19,441)
289,208
8,090
277,857
(a) Tenement Expenditure Commitments
The Consolidated entity has no annual spending commitments required by Government or other bodies in order to
maintain the standing of our Argentinian tenements. However, the Group is required to pay annual mining fees to
keep the tenement rights in good standing, the approximate annual cost is AUD$103,000.
31 Contingencies
The Consolidated entity had no contingent liabilities at 30 June 2023 (2022: nil).
130
118
LAKE RESOURCES ANNUAL REPORT 2023 Lake Resources NL
30 June 2023
Note to the consolidated financial statements
29 Cash flow information (continued)
(b) Non-cash investing and financing activities (continued)
(ii) Reconciliation of net debt
Opening balance
Repayments - cash
Lease liability on inception
Interest and finance cost
Closing balance
30 Commitments
2023
$
277,857
(244,767)
1,456,920
182,834
1,672,844
2022
$
-
(19,441)
289,208
8,090
277,857
Lake Resources NL
Directors' declaration
30 June 2023
In the Directors' opinion:
(a)
the consolidated financial statements and notes set out on pages 72 to 130 are in accordance with the
Corporations Act 2001, including:
(i)
(ii)
complying with Accounting Standards, the Corporations Regulations 2001 and other mandatory
professional reporting requirements, and
giving a true and fair view of the consolidated entity's financial position as at 30 June 2023 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 and Chief Financial Officer required by
section 295A of the Corporations Act 2001.
This declaration is made in accordance with a resolution of the Directors.
(a) Tenement Expenditure Commitments
The Consolidated entity has no annual spending commitments required by Government or other bodies in order to
maintain the standing of our Argentinian tenements. However, the Group is required to pay annual mining fees to
keep the tenement rights in good standing, the approximate annual cost is AUD$103,000.
31 Contingencies
The Consolidated entity had no contingent liabilities at 30 June 2023 (2022: nil).
S. Crow
Director
28 September 2023
118
131131
Lake Resources NL
Independent auditor's report to the members
30 June 2023
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
Independent auditor's report to the members of
To the members of Lake Resources NL
Lake Resources NL
Report on the Audit of the Financial Report
Opinion
We have audited the financial report of Lake Resource NL (the Company) and its subsidiaries (the
Group), which comprises the consolidated statement of financial position as at 30 June 2023, 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)
(ii)
Giving a true and fair view of the Group’s financial position as at 30 June 2023 and of its
financial performance for the year ended on that date; and
{The Auditor's report will be provided by your Auditor.}
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.
120
132
LAKE RESOURCES ANNUAL REPORT 2023
Lake Resources NL
Independent auditor's report to the members
30 June 2023
Carrying value of exploration and evaluation assets
Key audit matter
How the matter was addressed in our audit
Refer to note 10 in the annual report. The Group
Our procedures included, but were not limited to the
carries exploration and evaluation assets as at 30 June
following:
2023 in accordance with the Group’s accounting policy
for exploration and evaluation assets.
• Obtaining an understanding of the current status
of the tenements/projects including key
The recoverability of exploration and evaluation assets
activities undertaken during the period;
is a key audit matter due to the significance of the
• Making enquiries of management with respect to
total balance and the level of procedures undertaken
whether any impairment indicators in
to evaluate management’s application of the
accordance with AASB 6 have been identified
requirements of AASB 6 Exploration for and Evaluation
{The Auditor's report will be provided by your Auditor.}
across the Group’s exploration project;
of Mineral Resources (‘AASB 6’) in light of any
•
Assessing management’s determination that
indicators of impairment that may be present.
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.
•
•
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.
121
133133
Lake Resources NL
Independent auditor's report to the members
30 June 2023
Accounting for Electronic Payment Market contract (MEP Dollar)
Key audit matter
Independent auditor's report to the members of
How the matter was addressed in our audit
Lake Resources NL
Refer to Note 5(h) of the financial report for other
income from gains on MEP Dollar trades, and related
disclosures.
For the year ended 30 June 2023, the Group recognised
$43,696,631 of other income from gains on MEP Dollar
trades, representing 94% of the Group’s total other
income.
Due to the quantum of the amount involved, we
consider this to be a key audit matter.
Our procedures included, but were not limited to the
following:
•
•
•
Review the terms and conditions of the MEP
arrangements;
Reviewed the Group’s processes for recognising
other income and controls in place around MEP
Dollar trading;
Reviewed the accounting treatment including the
classification of gains and losses and cash flows
presented in the financial statements, and the
notes explaining the nature of these
transactions;
• Obtained and reperformed the other income
calculations in relation to the gains on MEP
{The Auditor's report will be provided by your Auditor.}
Dollar trades;
•
•
Agreed, on a sample basis, transactions during
the year to underlying external supporting
documents;
Reviewed the adequacy of the disclosures in
relation to other income set out in note 5(h) to
the financial report.
Other information
The directors are responsible for the other information. The other information comprises the
information in the Group’s annual report for the year ended 30 June 2023, but does not include the
financial report and the auditor’s report thereon.
Our opinion on the financial report does not cover the other information and we do not express any
form of assurance conclusion thereon.
In connection with our audit of the financial report, our responsibility is to read the other information
and, in doing so, consider whether the other information is materially inconsistent with the financial
report or our knowledge obtained in the audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this
other information, we are required to report that fact. We have nothing to report in this regard.
Responsibilities of the directors for the Financial Report
The directors of the Company are responsible for the preparation of 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.
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.
120
134
LAKE RESOURCES ANNUAL REPORT 2023
Lake Resources NL
Independent auditor's report to the members
30 June 2023
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.
{The Auditor's report will be provided by your Auditor.}
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 pages 31 to 67 of the directors’ report for the
year ended 30 June 2023.
In our opinion, the Remuneration Report of Lake Resources NL, for the year ended 30 June 2023,
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, 28 September 2023
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.
121
135135
2023 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 29 September 2023 and has been approved by the Board. It is
available on the Company’s website at www.lakeresources.com.au.
ASX Principles and Recommendations
1. Lay solid foundations for management and oversight
1.1. A listed entity should have and
disclose a board charter setting out:
Yes
Comply
(Yes/No) Explanation
respective
the
(a)
responsibilities of
management; and
roles
and
its board and
The Company has adopted a Board Charter which sets out
the roles and responsibilities of the Board, the Chairman,
senior management (including the Managing Director and
Chief Executive officer), and the Company Secretary. The
Board Charter also sets out the matters expressly reserved
to the Board and those delegated to management.
those matters
(b)
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 Chief Executive
Officer and senior management; however,
the Board
continues to be responsible for ensuring that management’s
objective and activities are aligned with the Company’s
values and risk appetite, as set by the Board from time to
time.
A copy of the Board Charter is available in the ‘Corporate
Governance’
at
http://www.lakeresources.com.au.
the Company’s website
section
of
136
122
LAKE RESOURCES ANNUAL REPORT 2023 2023 Corporate Governance Statement
2023 Corporate Governance Statement (continued)
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 29 September 2023 and has been approved by the Board. It is
available on the Company’s website at www.lakeresources.com.au.
ASX Principles and Recommendations
(Yes/No) Explanation
1. Lay solid foundations for management and oversight
1.1. A listed entity should have and
Yes
disclose a board charter setting out:
Comply
(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, the Chairman,
senior management (including the Managing Director and
Chief Executive officer), 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 Chief Executive
Officer and senior management; however,
the Board
continues to be responsible for ensuring that management’s
objective and activities are aligned with the Company’s
values and risk appetite, as set by the Board from time to
time.
A copy of the Board Charter is available in the ‘Corporate
Governance’
section
of
the Company’s website
at
http://www.lakeresources.com.au.
ASX Principles and Recommendations
1. Lay solid foundations for management and oversight
1.2. A listed entity should:
Yes
Comply
(Yes/No) Explanation
(a) undertake appropriate checks
before appointing a director or
senior executive or putting someone
forward for election as a director;
and
(b) provide security holders with all
in
material
its
information
to a decision
possession relevant
on whether or not
to elect or re-
elect a director.
1.3. A listed entity should have a written
agreement with each director and
senior executive setting out
the
terms of their appointment.
Yes
1.4. The company secretary of a listed
accountable
entity
should
directly to the board,
through the
chair, on all matters to do with the
proper functioning of the board.
be
Yes
things,
checks
The Board has constituted a Nomination and Governance
Committee to support and advise the Board in, amongst
before
undertaking appropriate
other
appointing a candidate as a director or a senior executive, or
putting forward to security holders a candidate for election as
including checks in respect of character,
a director,
experience, education, criminal
record and bankruptcy
history. The Nomination and Governance Committee is also
responsible for ensuring the Board has an appropriate mix of
skills and experience to be an effective decision-making
body, and that
the Board is comprised of directors who
contribute to the successful management of the Company
and discharge their duties having regard to the law and the
highest standards of corporate governance.
The Nomination and Governance Committee is also
responsible for ensuring all material information relevant to a
decision on whether or not to elect or re-elect a director is
provided to security holders. Therefore,
the Notice of
Meeting each year dispatched to all shareholders prior for
the AGM includes all such 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.
A copy of
the Nomination and Governance Committee
Charter is available in the ‘Corporate Governance’ section of
the Company’s website at http://www.lakeresources.com.au.
The Nomination and Governance Committee is responsible
for ensuring that each director and senior executive is a party
to a written agreement with the Company which sets out the
terms of that director’s or senior executive’s appointment.
Therefore, the Company has written agreements in place
with all directors and senior executives setting out the terms
of their appointment.
The Board Charter provides for the Company Secretary to be
accountable directly to the Board through the Chair, on all
matters to do with the proper functioning of the Board.
122
123
137137
2023 Corporate Governance Statement (continued)
ASX Principles and Recommendations
1. Lay solid foundations for management and oversight (Continued)
1.5. A listed entity should:
No
Comply
(Yes/No) Explanation
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.
In this reporting period,
the Group has successfully
increased its gender diversity compared to the last
reporting period. The Company currently has two female
board members (2022:1) representing 33% of the Board
and
(2022: Nil)
representing 37.5% of senior executives. The Company
currently has 56 female employees representing 33.1% of
the total number of employees.
executives
female
senior
three
the Company,
The Board notes that it has made substantial progress
over the last year to actively manage diversity as a means
of enhancing the Company’s performance by recognising
and utilising the contribution of diverse skills and talent
from its directors, senior management, and employees.
While the Board remains committed to the goal of gender
levels, given the size and stage of
diversity at all
it has not yet set
development of
“measurable objectives” for achieving gender diversity in
the composition of its board, senior executive or workforce
generally. However, the Board will continually monitor this
position pursuant to the Company’s Diversity Policy, and
implement measurable objectives as and when it
will
deems the Company to require them. The future
implementation of any measurable objectives will be
disclosed to shareholders via the Company’s website and
outcomes following the implementation of measurable
objectives will be disclosed in its annual report.
(a) Have and disclose a diversity
policy;
board
(b) through its board or a committee
of
set measurable
the
for achieving gender
objectives
its
diversity in the composition of
board,
and
senior
workforce generally; and
executive
(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) the respective proportions of
men and women on the board, in
senior executive positions and
the whole workforce
across
(including how the entity has
defined “senior executive”
for
these purposes); or
if
the entity is a “relevant
(B)
employer” under the Workplace
Gender Equality Act, the entity’s
most
“Gender Equity
Indicators”, as defined in and
published under that Act.
recent
period,
reporting
If the entity was in the S & P/ASX
300 index at the commencement of
the
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.
138
124
LAKE RESOURCES ANNUAL REPORT 2023 2023 Corporate Governance Statement (continued)
ASX Principles and Recommendations
(Yes/No) Explanation
1. Lay solid foundations for management and oversight (Continued)
1.5. A listed entity should:
No
Comply
(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) 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
(B)
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.
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.
In this reporting period,
the Group has successfully
increased its gender diversity compared to the last
reporting period. The Company currently has two female
board members (2022:1) representing 33% of the Board
and
three
female
senior
executives
(2022: Nil)
representing 37.5% of senior executives. The Company
currently has 56 female employees representing 33.1% of
the total number of employees.
The Board notes that it has made substantial progress
over the last year to actively manage diversity as a means
of enhancing the Company’s performance by recognising
and utilising the contribution of diverse skills and talent
from its directors, senior management, and employees.
While the Board remains committed to the goal of gender
diversity at all
levels, given the size and stage of
development of
the Company,
it has not yet set
“measurable objectives” for achieving gender diversity in
the composition of its board, senior executive or workforce
generally. However, the Board will continually monitor this
position pursuant to the Company’s Diversity Policy, and
will
implement measurable objectives as and when it
deems the Company to require them. The future
implementation of any measurable objectives will be
disclosed to shareholders via the Company’s website and
outcomes following the implementation of measurable
objectives will be disclosed in its annual report.
124
2023 Corporate Governance Statement (continued)
ASX Principles and Recommendations
1. Lay solid foundations for management and oversight (Continued)
1.6. A listed entity should:
Yes
Comply
(Yes/No) Explanation
(a) have and disclose a process for
the
periodically
performance of
its
committees and individual directors;
and
the board,
evaluating
(b) disclose for each reporting
period whether
performance
evaluation has been undertaken in
accordance with that process during
or in respect of that period.
a
1.7. A listed entity should:
Yes
(a) have and disclose a process for
evaluating the performance of
its
senior executives at
least once
every reporting period; and
(b) disclose for each reporting
period whether
performance
evaluation has been undertaken in
accordance with that process during
or in respect of that period.
a
The Company has a Compensation Committee which is
the
responsible for overseeing the annual evaluations of
as
directors,
its
Board,
appropriate.
committees
individual
and
A copy of the Company’s Compensation Committee Charter
and Performance Evaluation Policy is available in the
‘Corporate Governance’ section of the Company’s website at
http://www.lakeresources.com.au.
Each committee of the Board is also responsible for annually
performing an evaluation of
that
committee.
the performance of
The Company undertook a renewal of
the Board and its
committees during the reporting period. Therefore, due to
these substantial changes, the performance evaluations in
respect of these roles have not yet taken place and are due
to be completed in the next reporting period. Accordingly, the
Company will report on these performance evaluations in the
annual report for the next reporting period.
The Company has
and Governance
Committee which is responsible for overseeing the annual
evaluations of its senior executives, including the Managing
Director and Chief Executive Officer, as appropriate.
a Nomination
As above, a copy of
the Company’s Compensation
Committee Charter and Performance Evaluation Policy is
available in the ‘Corporate Governance’ section of
the
Company’s website at http://www.lakeresources.com.au.
The Chairman is responsible for undertaking the evaluation
of the MD/CEO, and this evaluation is based on specific
criteria, including the business performance of the Company
and its subsidiaries, whether strategic objectives are being
achieved and the development of management and
personnel.
The MD/CEO is responsible for evaluating the performance
of the senior executives in each reporting period.
The Company appointed a new Managing Director and
team during the reporting period.
senior management
Therefore, due to these changes,
the performance
evaluations in respect of these roles have not yet taken place
and are due to be completed in the next reporting period.
Accordingly, the Company will report on these performance
evaluations in the annual report for the next reporting period.
125
139139
2023 Corporate Governance Statement (continued)
ASX Principles and Recommendations
2. Structure the board to be effective and add value
2.1. The board of a listed entity should:
Yes
Comply
(Yes/No) Explanation
(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
the number of
(5) as at the end of each reporting
times the
period,
committee met
the
throughout
individual
period
the
attendances of
the members at
those meetings; or
and
The Company has constituted a Nomination and Governance
Committee which has three members who are all independent
directors, and is therefore chaired also by an independent
director. The committee is comprised of the following directors:
• Cheemin Bo Linn - Chair
• Robert Trzebski
• Ana Gomez Chapman
The relevant qualifications and experience of the directors
listed above can be found in their biographies located in the
Directors’ Report section of the annual report.
times the Committee met
the
The number of
reporting period and the individual attendances at
those
meetings, are recorded in the Company’s Annual Financial
Statements.
throughout
The Charter of the Nomination and Governance Committee
is available in the ‘Corporate Governance’ section of
the
Company’s website at http://www.lakeresources.com.au.
(b) if it does not have a nomination
fact and
committee, disclose that
the processes it employs to address
board succession issues and to
the board has the
ensure that
of
appropriate
skills,
balance
experience,
knowledge,
independence
to
and
enable it to discharge its duties and
responsibilities effectively.
diversity
140
126
LAKE RESOURCES ANNUAL REPORT 2023 2023 Corporate Governance Statement (continued)
ASX Principles and Recommendations
(Yes/No) Explanation
2. Structure the board to be effective and add value
Comply
2.1. The board of a listed entity should:
Yes
The Company has constituted a Nomination and Governance
Committee which has three members who are all independent
directors, and is therefore chaired also by an independent
director. The committee is comprised of the following directors:
• Cheemin Bo Linn - Chair
• Robert Trzebski
• Ana Gomez Chapman
The relevant qualifications and experience of the directors
listed above can be found in their biographies located in the
Directors’ Report section of the annual report.
The number of
times the Committee met
throughout
the
reporting period and the individual attendances at
those
meetings, are recorded in the Company’s Annual Financial
The Charter of the Nomination and Governance Committee
is available in the ‘Corporate Governance’ section of
the
Company’s website at http://www.lakeresources.com.au.
(4) the members of the committee;
and
Statements.
(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;
(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
knowledge,
balance
of
skills,
experience,
independence
and
diversity
to
enable it to discharge its duties and
responsibilities effectively.
2023 Corporate Governance Statement (continued)
Comply
(Yes/No) Explanation
ASX Principles and Recommendations
2. Structure the board to be effective and add value (Continued)
2.2. A listed entity should have and
disclose a board skills matrix setting
out the mix of skills that the board
is looking to
currently has or
achieve in its membership.
No
During the reporting period the Company did not disclose a
board skills matrix. With the renewal of the Board in the
reporting period, the board skills matrix is currently being
developed by the newly constituted Nomination and
Governance Committee, and is scheduled to be in place by
November 30.
On a collective basis, the Board considers that it currently
has the right mix of forward-looking perspective, and relevant
skills, experience and expertise necessary, to successfully
further the development of the Company. The board skills
matrix being developed by the Nomination and Governance
Committee reflects the Board's objective to have an
recent and meaningful and specific
appropriate mix of
industry and professional experience,
including relevant
skills, experience and expertise in key focus areas such as
mineral
leadership,
risk management,
governance,
Government and community engagement and international
business operations.
development
exploration,
strategy,
finance,
project
2.3. A listed entity should disclose:
Yes
the names of
(a)
the directors
considered by the board to be
independent directors;
if a director has an interest,
(b)
position, association or relationship
of the type described in Box 2.3 but
the board is of the opinion that it
the
does
the
independence of
nature of
the interest, position or
relationship in question and an
explanation of why the board is of
that opinion; and
the director,
compromise
not
The following is a list of directors considered by the Board to
be independent and their length of service:
• Howard Atkins (less than 1 year)
• Cheemin Bo Linn (less than 1 year)
• Ana Chapman; (less than 1 year)
• Robert Trzebski (3 years).
The Board has not been informed by any of the directors
listed above of any conflicts of interest that may compromise
the independence of that director.
(c) the length of service of each
director.
126
127
141141
2023 Corporate Governance Statement (continued)
ASX Principles and Recommendations
2. Structure the board to be effective and add value (Continued)
2.4. A majority of the board of a listed
independent
should
Yes
be
Comply
(Yes/No) Explanation
entity
directors.
The Board has 4 independent directors on the Board, which
constitutes 66% (4/6) of
the Board being 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.
Yes
Yes
for
2.6. A listed entity should have a
program for inducting new directors
and
reviewing
periodically
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.
this report
The Chairman, Mr Stuart Crow, is not considered at the date
of
to be an independent director. During the
reporting period, the Company appointed Mr Stuart Crow as
Executive Chairman on 20 June 2022 and he held that role
until 5 January 2023. This appointment was to facilitate the
transition from the former MD/CEO to Mr David Dickson, who
was appointed MD/CEO with effect
from 15 September
2022.
Prior to his appointment as Executive Chairman, the Board
considered Mr Crow to be an independent Director.
The Chairman and the MD/CEO are no longer, since 15
September 2022, the same person.
Upon appointment to the Board, the Company requires new
Directors to be provided with access to 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
industry
them to maintain their understanding of relevant
matters
the
and
Company’s operations.
advancements
technical
effecting
The Company’s Nomination and Governance Committee is
responsible for approving and reviewing induction and
continuing
and
procedures for directors to ensure that they can effectively
discharge their responsibilities.
development
professional
programs
142
128
LAKE RESOURCES ANNUAL REPORT 2023 2023 Corporate Governance Statement (continued)
ASX Principles and Recommendations
(Yes/No) Explanation
2. Structure the board to be effective and add value (Continued)
Comply
2.4. A majority of the board of a listed
Yes
entity
should
be
independent
directors.
2.5. The chair of the board of a listed
Yes
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
Yes
program for 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.
The Board has 4 independent directors on the Board, which
constitutes 66% (4/6) of
the Board being independent
directors.
The Chairman, Mr Stuart Crow, is not considered at the date
of
this report
to be an independent director. During the
reporting period, the Company appointed Mr Stuart Crow as
Executive Chairman on 20 June 2022 and he held that role
until 5 January 2023. This appointment was to facilitate the
transition from the former MD/CEO to Mr David Dickson, who
was appointed MD/CEO with effect
from 15 September
2022.
Prior to his appointment as Executive Chairman, the Board
considered Mr Crow to be an independent Director.
The Chairman and the MD/CEO are no longer, since 15
September 2022, the same person.
Upon appointment to the Board, the Company requires new
Directors to be provided with access to 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.
The Company’s Nomination and Governance Committee is
responsible for approving and reviewing induction and
continuing
professional
development
programs
and
procedures for directors to ensure that they can effectively
discharge their responsibilities.
2023 Corporate Governance Statement (continued)
ASX Principles and Recommendations
3. Instill a culture of acting lawfully, ethically and responsibly
3.1. A listed entity should articulate and
Yes
Comply
(Yes/No) Explanation
disclose its values.
3.2. A listed entity should:
Yes
(a) have and disclose a code of
conduct
its directors, senior
executives and employees; and
for
(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:
have
(a)
whistleblower policy: and
and
disclose
Yes
a
incident
(b) ensure that
the board or a
committee of the board is informed
of any material
reported
under that policy.
3.4. A listed entity should:
have
(a)
an
anti-bribery and corruption policy;
and
disclose
and
Yes
The Company’s Corporate Code of Conduct applies to all
Directors, officers, contractors, senior executives, and
employees (“Staff”).
The Code of Conduct contains a set of general principles
and the Company has adopted a statement of values that
each member of Staff must adhere to. Staff are expected to
act with integrity and objectively, always striving to enhance
the reputation and performance of the Company.
Staff are under the obligation to ensure that the Code of
Conduct is not breached. If any member of Staff notice any
violations or material breaches of the Conduct of Conduct,
they must notify the Managing Director and Chief Executive
Officer,
(if
applicable). The Company views breaches of the Code of
Conduct as serious misconduct, and any breach of the Code
of Conduct will be thoroughly investigated and appropriate
action will be taken by the Company.
the Company or a supervisor
the Chair of
A copy of the Company's Code of Conduct is available in the
‘Corporate Governance’ section of the Company's website at
http://www.lakeresources.com.au.
As outlined above, the Company has a Code of Conduct for
its directors, senior executives and employees, which is
the
published in the ‘Corporate Governance’ section of
Company’s website at http://www.lakeresources.com.au.
Pursuant to the Code of Conduct, employees must report
breaches of
the Code of Conduct and/or any suspected
corrupt conduct to the Board.
The Company has a formal Whistleblower Policy which is
published in the ‘Corporate Governance’ section of
the
Company’s website at http://www.lakeresources.com.au.
The Whistleblower Policy provides a procedure for the Board
to be informed of any material
incident reported under the
policy.
The Company has a formal Anti-bribery and Corruption
Policy which is published in the ‘Corporate Governance’
section
at
http://www.lakeresources.com.au.
Company’s
website
the
of
the board or a
(b) ensure that
committee of the board is informed
of any material breaches of
that
policy.
The Anti-bribery and Corruption Policy provides a procedure
for the Board to be informed of any material incident reported
under the policy.
128
129
143143
The Company has an Audit and Risk Committee which has
three members who are all independent. The committee is
comprised of the following directors:
• Howard Atkins - Chair
• Cheemin Bo Linn
• Ana Gomez Chapman
The relevant qualifications and experience of the directors
listed above can be found in their biographies located in the
Directors’ Report section of the annual report.
The number of
reporting period and the individual attendances at
meetings are recorded in the Annual Financial Statements.
times the Committee met
throughout
the
those
The Charter of the Audit and Risk Committee is available in
the ‘Corporate Governance’ section of
the Company’s
website at http://www.lakeresources.com.au.
2023 Corporate Governance Statement (continued)
ASX Principles and Recommendations
4. Safeguard the integrity of corporate reports
4.1. The board of a listed entity should:
Yes
Comply
(Yes/No) Explanation
(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) the relevant qualifications and
experience of
the members of
the committee; and
(5) in relation to each reporting
period, the number of times the
committee met
the
period
individual
attendances of the members at
those meetings; or
throughout
the
and
if
it employs
it does not have an audit
(b)
fact and
committee, disclose that
the processes
that
independently verify and safeguard
corporate
its
of
the
reporting,
including the processes
for the appointment and removal of
the external auditor and the rotation
of the audit engagement partner.
integrity
144
130
LAKE RESOURCES ANNUAL REPORT 2023 The Company has an Audit and Risk Committee which has
three members who are all independent. The committee is
comprised of the following directors:
• Howard Atkins - Chair
• Cheemin Bo Linn
• Ana Gomez Chapman
The relevant qualifications and experience of the directors
listed above can be found in their biographies located in the
Directors’ Report section of the annual report.
The number of
times the Committee met
throughout
the
reporting period and the individual attendances at
those
meetings are recorded in the Annual Financial Statements.
The Charter of the Audit and Risk Committee is available in
the ‘Corporate Governance’ section of
the Company’s
website at http://www.lakeresources.com.au.
2023 Corporate Governance Statement (continued)
ASX Principles and Recommendations
(Yes/No) Explanation
4. Safeguard the integrity of corporate reports
4.1. The board of a listed entity should:
Yes
Comply
(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) the relevant qualifications and
experience of
the members of
the committee; and
(5) 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.
130
2023 Corporate Governance Statement (continued)
The Company complies with this recommendation.
Please refer to the ‘Directors’ Declaration’ in the Company’s
annual report.
Comply
(Yes/No) Explanation
Yes
have
ASX Principles and Recommendations
4. Safeguard the integrity of corporate reports (Continued)
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
properly
entity
maintained and that
the financial
the
comply
statements
appropriate accounting standards
and give a true and fair view of the
financial position and performance
the opinion
of
has been formed on the basis of a
sound system of risk management
and
is
internal
operating effectively.
the entity and that
control which
been
with
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.
Yes
5. Make timely and balanced disclosure
5.1. A listed entity should have and
policy
a written
for
disclose
complying with
continuous
its
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
analyst
investor
substantive
presentation should release a copy
of the presentation materials on the
ASX
Announcements
Platform ahead of the presentation.
Market
or
Yes
Yes
Yes
Periodic corporate reports that are not audited or reviewed
by an external auditor are circulated to all directors and
reviewed by the Board before release. Reports on
exploration and drilling activities are also signed by a
competent person, as required by the JORC Code 2012.
The Company’s Continuous Disclosure Policy is available in
the ‘Corporate Governance’ section of
the Company’s
website at http://www.lakeresources.com.au.
The Company has a Continuous Disclosure Policy which is
available in the ‘Corporate Governance’ section of
the
Company’s website at http://www.lakeresources.com.au.
The Company has processes in place to ensure that copies
of all market announcements are circulated promptly to the
Board either before or after they have been made.
The Company Secretary must also maintain a copy of all
announcements released.
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 from time to time in the
‘ASX
at
section
Announcements’
http://www.lakeresources.com.au when released.
131
145145
2023 Corporate Governance Statement (continued)
Comply
(Yes/No) Explanation
ASX Principles and Recommendations
6. Respect the rights of security holders
6.1. A listed entity
should provide
information about
itself and its
governance to investors via its
website.
6.2. A listed entity should have an
program that
relations
two-way
investor
facilitates
communication with investors
effective
Yes
Yes
6.3. A listed entity should disclose how it
encourages
facilitates
participation at meetings of security
holders.
and
Yes
6.4. A listed entity should ensure that all
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
receive
option
holders
communications from, and send
communications to,
the entity and
its security registry electronically.
the
to
Yes
Yes
Company maintains
The
containing
comprehensive information on the Company including a
company profile, corporate strategy, policy statements
including corporate governance, Board of Directors, and
contact information.
website
a
All the Company’s quarterly, half year and annual reports
and other disclosures are available on the Company website
in the ‘Investors’ section at http://www.lakeresources.com.au.
The Company complies with this recommendation and
communicates with shareholders via releases to the market
on the ASX platform, through the Company’s website, by
information provided directly to shareholders at webinar
briefing meetings open to all shareholders and the public,
and at general meetings. The Company has also appointed
in the reporting period a new position of Senior Vice
Investor Relations and Communications to
President
facilitate enquiries from investors and to facilitate an effective
two-way communication with the Company’s investors.
-
The Company encourages shareholders to attend and
participate in general meetings by releases to the market on
the ASX platform, through the Company’s website, and by
information provided directly to shareholders at webinar
briefing meetings open to all shareholders and the public. If a
shareholder wishes to provide a comment or question prior
to the meeting for consideration at the meeting, a process for
doing this is communicated to shareholders prior to each
meeting.
All resolutions at general meetings are decided by a poll.
The Company provides all security holders with the option to
receive communications electronically.
146
132
LAKE RESOURCES ANNUAL REPORT 2023 2023 Corporate Governance Statement (continued)
ASX Principles and Recommendations
(Yes/No) Explanation
Comply
6. Respect the rights of security holders
6.1. A listed entity
should provide
Yes
information about
itself and its
governance to investors via its
website.
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, and
contact information.
All the Company’s quarterly, half year and annual reports
and other disclosures are available on the Company website
in the ‘Investors’ section at http://www.lakeresources.com.au.
The Company complies with this recommendation and
communicates with shareholders via releases to the market
on the ASX platform, through the Company’s website, by
information provided directly to shareholders at webinar
briefing meetings open to all shareholders and the public,
and at general meetings. The Company has also appointed
in the reporting period a new position of Senior Vice
President
-
Investor Relations and Communications to
facilitate enquiries from investors and to facilitate an effective
two-way communication with the Company’s investors.
The Company encourages shareholders to attend and
participate in general meetings by releases to the market on
the ASX platform, through the Company’s website, and by
information provided directly to shareholders at webinar
briefing meetings open to all shareholders and the public. If a
shareholder wishes to provide a comment or question prior
to the meeting for consideration at the meeting, a process for
doing this is communicated to shareholders prior to each
meeting.
All resolutions at general meetings are decided by a poll.
The Company provides all security holders with the option to
receive communications electronically.
6.2. A listed entity should have an
Yes
investor
relations
program that
facilitates
effective
two-way
communication with investors
6.3. A listed entity should disclose how it
Yes
facilitates
and
encourages
participation at meetings of security
holders.
6.4. A listed entity should ensure that all
Yes
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
Yes
holders
the
option
to
receive
communications from, and send
communications to,
the entity and
its security registry electronically.
2023 Corporate Governance Statement (continued)
ASX Principles and Recommendations
7. Recognise and manage risk
7.1. The Board of a listed entity should:
(a) have a committee or committees
to oversee risk, each of which:
Comply
(Yes/No) Explanation
Yes
The Company has an Audit and Risk Committee which has
three members who are all
the
members and experience of the Committee are set out at 4.1
above.
independent. Details of
(1) has at least three members, a
majority of whom are independent
directors; and
The number of
the
times the Committee met
period and the individual attendances at those meetings are
recorded in the Annual Financial Statements.
throughout
(2) is chaired by an independent
director,
and disclose:
(3) the charter of the committee;
(4) the members of the committee;
and
The Charter of the Audit and Risk Committee is available in
the ‘Corporate Governance’ section of on the Company’s
website at http://www.lakeresources.com.au.
the number of
(5) as at the end of each reporting
times the
period,
committee met
the
throughout
individual
period
the
attendances of
the members at
those meetings; or
and
or
committees
(b)
if
it does not have a risk
that
committee
satisfy (a) above, disclose that fact
and the processes it employs for
overseeing
risk
management framework.
entity’s
the
132
133
147147
2023 Corporate Governance Statement (continued)
Comply
(Yes/No) Explanation
ASX Principles and Recommendations
7. Recognise and manage risk (Continued)
7.2. The board or a committee of
the
Yes
board should:
entity’s
the
framework at
risk
review
(a)
least
management
annually to satisfy itself
it
continues to be sound and that the
entity is operating with due regard
to the risk appetite set by the board;
and
that
(b) disclose in relation to each
reporting period, whether such a
review has taken place.
7.3. A listed entity should disclose:
Yes
if
it has an internal audit
(a)
function,
is
structured and what role it performs;
or
how the
function
function,
(b) if it does not have an internal
audit
fact and the
that
processes it employs for evaluating
the
and
effectiveness of its governance, risk
management and internal control
processes.
continually
improving
During the reporting period, the Company and the Audit and
Risk Committee undertook a comprehensive review of its risk
management practices and is in the process of implementing
a new robust risk management program, including adopting
policies and procedures for the identification, management
and reporting of risk.
As a lithium developer, the Company faces inherent risks in
its development activities. The Company’s risk management
program focuses on both operational risk and enterprise risk.
The Company’s program with respect to operational risk is
mature,
identification, analysis and
mitigation. The Company’s enterprise risk management
process is maturing. During the reporting period,
the
Company’s senior management has identified several
enterprise risks and has adopted plans to track and mitigate
each.
focusing on risk
Further detail on the Company’s assessment of material
business risks can be found in the Directors’ Report section
of the Company’s annual report.
The Company does not have a formal internal audit function
due to its current size and stage of development. However,
the Audit and Risk Committee monitors the need for an
internal audit
function on an ongoing basis, and will
implement as and when they deem the Company required it.
review of
The Company’s management periodically undertakes an
internal
financial systems and processes and
ensures that comprehensive internal controls and processes
are developed with respect to certain classes of risk. At this
stage, the Company’s operational and financial functions are
not complex, and expenditure authorisations are undertaken
in accordance with a comprehensive matrix of delegated
authority. The Company’s external auditor is consulted to
provide advice to the Audit and Risk Committee.
148
134
LAKE RESOURCES ANNUAL REPORT 2023 2023 Corporate Governance Statement (continued)
Comply
(Yes/No) Explanation
ASX Principles and Recommendations
7. Recognise and manage risk (Continued)
7.4. A listed entity
Yes
it
has
should disclose
whether
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 is committed to conducting all of
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
to
Code of Conduct outlines the Company’s commitment
integrity and fair dealing in its business affairs and to a duty
of care to all employees, clients, and stakeholders. The Code
of Conduct 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.
Further detail on the Company’s assessment of material
business risks can be found in the Directors’ Report section
of the Company’s annual report.
135
149149
2023 Corporate Governance Statement (continued)
ASX Principles and Recommendations
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
the number of
(5) as at the end of each reporting
times the
period,
committee met
the
throughout
the
period
individual
the members at
attendances of
those meetings; or
and
it
if
not
have
does
(b)
a
remuneration committee, disclose
fact and the processes it
that
employs for setting the level and
composition of
remuneration for
directors and senior executives and
ensuring that such remuneration is
appropriate and not excessive.
8.2. A listed entity should separately
disclose its policies and practices
regarding the remuneration of non-
the
directors
executive
remuneration of executive directors
and other senior executives.
and
Comply
(Yes/No) Explanation
Yes
The Company has a Compensation Committee which has
three members who are all independent. The committee is
comprised of the following directors:
• Robert Trzebski - Chair
• Howard Atkins
• Cheemin Bo Linn
The relevant qualifications and experience of the directors
listed above can be found in their biographies located in the
Directors’ Report section of the annual report.
the
times the Committee met
The number of
period and the individual attendances at those meetings are
recorded in the Annual Financial Statements.
throughout
The Charter of the Compensation Committee is available in
the Company’s
the ‘Corporate Governance’ section of
website at http://www.lakeresources.com.au.
Yes
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.
The Company’s Remuneration Principles are available in the
‘Corporate Governance’ section of the Company’s website at
http://www.lakeresources.com.au.
150
136
LAKE RESOURCES ANNUAL REPORT 2023 2023 Corporate Governance Statement (continued)
ASX Principles and Recommendations
(Yes/No) Explanation
8. Remunerate fairly and responsibly
Comply
8.1. The Board of a listed entity should:
Yes
The Company has a Compensation Committee which has
three members who are all independent. The committee is
(a) have a remuneration committee
comprised of the following directors:
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.
disclose its policies and practices
regarding the remuneration of non-
executive
directors
and
the
remuneration of executive directors
and other senior executives.
8.2. A listed entity should separately
Yes
2023 Corporate Governance Statement (continued)
ASX Principles and Recommendations
8. Remunerate fairly and responsibly (Continued)
8.3. A listed entity which has an equity-
scheme
remuneration
Yes
based
should:
Comply
(Yes/No) Explanation
• Robert Trzebski - Chair
• Howard Atkins
• Cheemin Bo Linn
The relevant qualifications and experience of the directors
listed above can be found in their biographies located in the
Directors’ Report section of the annual report.
The number of
times the Committee met
throughout
the
period and the individual attendances at those meetings are
recorded in the Annual Financial Statements.
The Charter of the Compensation Committee is available in
the ‘Corporate Governance’ section of
the Company’s
website at http://www.lakeresources.com.au.
(a) have a policy on whether
participants are permitted to enter
into transactions (whether through
the use of derivatives or otherwise)
the economic risk of
which limit
participating in the scheme; and
(b) disclose
summary of it.
that policy or a
The Company’s Trading Policy and the Corporations Act
prohibit Key Management Personnel and a closely related
from entering an
party of Key Management Personnel
arrangement if the arrangement would have the effect of
limiting the exposure of the member to risk relating to an
element of the members remuneration that has not vested or
has vested but remains subject
to a holding lock. Key
Management Personnel of the Company and their closely
related parties should not deal in Securities in the Company
which may infringe this prohibition under the Corporations
Act nor should any other Restricted Person enter
into
hedging transactions to limit his or her exposure in respect of
any unvested entitlement to Securities he or she receives
under any equity based remuneration scheme of
the
Company.
The Company’s Trading Policy is available in the ‘Corporate
at
Governance’
http://www.lakeresources.com.au.
the Company’s website
section
of
N/A
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
should
disclose the processes it has in
director
place
understands and can contribute to
the discussions at those meetings
and understands and can discharge
their obligations in relation to those
documents.
are written
ensure
the
to
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.
The Company’s Remuneration Principles are available in the
‘Corporate Governance’ section of the Company’s website at
http://www.lakeresources.com.au.
9.2. A listed entity established outside
Australia
that
should
meetings of security holders are
held at a reasonable place and
time.
ensure
an
9.3. A listed entity established outside
Australia
externally
and
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
136
137
151151
ADDITIONAL ASX INFORMATION
Top holders grouped report
Lake Resources N.L.
Security class:
LKE - Ordinary Shares
As at date:
19 September 2023
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
US REGISTER CONTROL A/C
ACUITY CAPITAL INVESTMENT MANAGEMENT PTY LTD
J P MORGAN NOMINEES AUSTRLALIA PTY LIMITED
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
BNP PARIBAS NOMS PTY LTD
SYDNEY BUSINESS ADVISERS PTY LTD
< CF SUPER FUND NO2 A/C>
BNP PARIBAS NOMINEES PTY LTD
BNP PARIBAS NOMINEES PTY LTD ACF CLEARSTREAM
SUPERHERO SECURITIES LIMITED
NATIONAL NOMINEES LIMITED
MR DANIEL RUBEN BONAFEDE
PARADISE MARINE PTY LTD
MR DAMIAN ARTHUR FURNELL
WARBONT NOMINEES PTY LTD
MR SIMON JAMES KALINOWSKI
MR LEIGH CHARLES MARTIN
MR YUANSHENG FENG
MR ZIJIANG YANG
ETRADE SECURITIES LLC
Total
Holding
171,465,877
106.797.985
65,200,000
51,380,671
37,699,657
14,351,504
12,800,000
12,553,341
11,275,949
8,759,267
7,998,816
7,234,634
6,512,523
6,328,676
6,293,475
6,018,793
6,000,000
5,695,960
5,405,000
5,263,180
% IC
12.05%
7.51%
4.58%
3.61%
2.65%
1.01%
0.90%
0.88%
0.79%
0.62%
0.56%
0.51%
0.46%
0.44%
0.44%
0.42%
0.42%
0.40%
0.38%
0.37%
555,035,308
39.02%
Total issued capital - selected security class(es)
1,422,444,707
100.00%
152
LAKE RESOURCES ANNUAL REPORT 2023
Holdings Range Report
Lake Resources N.L.
Security Class:
As at Date:
Price per security: $0.1700
LKE - Ordinary Shares
19 September 2023
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
7,178
13,353
5,672
9,173
1,447
36,823
4,525,741
35,487,829
43,619,035
289,102,176
1,049,709,926
1,422,444,707
0.32%
2.49%
3.07%
20.32%
73.80%
100.00%
Based on the price per security, number of holders with an unmarketable holding: 15,437, with total 19,736,634, amounting to 1.39%
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.
153153
OPT @ $0.55 EXP
12/07/24
OPT @ $0.49 EXP
01/08/24
OPT @ $1.48 EXP
19/01/25
OPT @ $0.565 EXP
25/10/24
OPT @ $1.42 EXP
26/04/2025
2019 PERFORMANCE
OPT @ $1.50 EXP
OPT @ $0.75 EXP
OPT @ $1.13 EXP
Restricted Stock
OPT @ $1.00 EXP
RIGHTS
22/08/2025
15/06/2025
15/09/2027
Units
24/10/2025
Holders
Total Units
Holders
Total Units
Holders
Total Units
Holders
Total Units
Holders
Total Units
Holders
Total Units
Holders Total Units Holders
Total Units Holders
Total Units Holders Total Units Holders
Total Units
1
2,000,000
2
5,601.00
1
1,000.00
1
2,000,000
2
2,072,244
1
5,000,000
1
1,000,000
3
5,550,000
1
4,000,000
4
1,703,500
2
3,000,000
2,890,000
1,036,122
1,000,000
2,000,000
2,711,000
1,036,122
5,000,000
1,000,000
4,000,000
1,000,000
1,500,000
1,500,000
1,260,000
4,010,000
2,000,000
5,601,000
1,000,000
2,000,000
2,072,244
5,000,000
1,000,000
5,550,000
4,000,000
1,703,500
3,000,000
Unlisted Securities
As at 19 September 2023
PETER NEILSEN
2,000,000
Range
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
Holders with > 20%
MR MATTHEW
BONNER
MR GEOFFREY
STUART CROW
DAVID DICKSON
GKB VENTURES LTD
SEAN MILLER
GAUTAM PARIMOO
ROBWARD PTY LTD
SD CAPITAL ADVISORY
MR EDWARD
ARYEH SUGAR
Totals
154
LAKE RESOURCES ANNUAL REPORT 2023
Unlisted Securities
As at 19 September 2023
Range
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
Holders with > 20%
MR MATTHEW
BONNER
MR GEOFFREY
STUART CROW
DAVID DICKSON
GKB VENTURES LTD
SEAN MILLER
GAUTAM PARIMOO
ROBWARD PTY LTD
SD CAPITAL ADVISORY
MR EDWARD
ARYEH SUGAR
Totals
OPT @ $0.55 EXP
OPT @ $0.49 EXP
OPT @ $1.48 EXP
OPT @ $0.565 EXP
OPT @ $1.42 EXP
12/07/24
01/08/24
19/01/25
25/10/24
26/04/2025
2019 PERFORMANCE
RIGHTS
OPT @ $1.50 EXP
22/08/2025
OPT @ $0.75 EXP
15/06/2025
OPT @ $1.13 EXP
15/09/2027
Restricted Stock
Units
OPT @ $1.00 EXP
24/10/2025
Holders
Total Units
Holders
Total Units
Holders
Total Units
Holders
Total Units
Holders
Total Units
Holders
Total Units
Holders Total Units Holders
Total Units Holders
Total Units Holders Total Units Holders
Total Units
1
2,000,000
2
5,601.00
1
1,000.00
1
2,000,000
2
2,072,244
1
5,000,000
1
1,000,000
3
5,550,000
1
4,000,000
4
1,703,500
2
3,000,000
PETER NEILSEN
2,000,000
2,890,000
1,036,122
1,000,000
2,000,000
2,711,000
1,036,122
5,000,000
1,000,000
1,260,000
4,010,000
4,000,000
1,000,000
1,500,000
1,500,000
2,000,000
5,601,000
1,000,000
2,000,000
2,072,244
5,000,000
1,000,000
5,550,000
4,000,000
1,703,500
3,000,000
155
RESOURCE ESTIMATES AND GOVERNANCE
A summary of the results of Lake’s annual review of its mineral resource estimates appears in Table 1 in the Review of Operations.
Governance of Lake’s mineral resource estimates and the estimation process is a key responsibility of Lake’s management team,
who have ensured that its mineral resources estimates are subject to appropriate levels of governance and internal controls.
This includes procuring verification by a Competent Person of the mineral resource estimates disclosed by the Company, and
the engagement of experts to verify certain field procedures and sampling methods used by Lake in its internal technical
assessments of the mineral resource estimates used by the Company.
The Statement of Estimates of Mineral Resources for the Kachi Project was reported by Lake in accordance with the rules for
reporting mining and exploration activities, including the listing rules of the ASX and the Australasian Code for Reporting of
Exploration Results, Mineral Resources and Ore Resources 2012 Edition (the JORC Code). This includes two resource updates
during 2023, released and made available on the Company’s website and on the ASX on January 11, 2023 and June 15, 2023,
respectively. Lake confirms it is not aware of any new information or data that materially affects the information included in the
latest announcement dated June 15, 2023 and the end of financial year balance date, being June 30, 2023, and that all material
assumptions and technical parameters underpinning the estimates in each of the previous announcements continue to apply
and have not materially changed as at the date of this annual report.
The two previous announcements noted above, which included updates to the mineral resource estimates for the Kachi Project,
were verified by Mr. Andy Fulton, who also verified the maiden resource for the Kachi Project in 2018. Mr. Fulton is a hydrogeologist
and is a Member of the Australian Institute of Geoscientists. Mr. Fulton is an employee of Groundwater Exploration Services, and is
independent of the Company. Mr. Fulton has sufficient relevant experience to qualify as a competent person as defined in the 2012
edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. He is also a “Qualified
Person” as defined in NI 43-101. During 2023, Mr. Andrew Fulton visited the Kachi Project on three separate occasions, reviewing
multiple aspects of the exploration and development activities.
Lake has reported on the mineral resources of its material mining project, the Kachi Project, on an annual basis in accordance
with the JORC Code. As resources are developed for other Lake projects, which are not material mining projects (as defined in the
listing rules of the ASX) as at the date of this annual report, those resources will be disclosed to investors in accordance with the
Company’s obligations under the listing rules of the ASX, and included in the Company’s annual reporting in accordance with the
JORC Code. In the absence of a developed JORC-compliant mineral resource, updates on the activities undertaken by the Company
at Lake’s other project sites will otherwise be provided as and when required.
156
LAKE RESOURCES ANNUAL REPORT 2023 SCHEDULE OF TENEMENTS - CATAMARCA - JUJUY
TOTAL NUMBER OF RESOURCES: 116
KACHI - ANTOFAGASTA DE LA SIERRA.- CATAMARCA
TENEMENT NA
NUMBER - GDE
AREA H
INTEREST
PROVINCE
STATUS
MINING
CONCESSION
MARIA I
MARIA II
MARIA III
KACHI INCA
KACHI INCA I
KACHI INCA II
KACHI INCA III
KACHI INCA V
KACHI INCA VI
DANIEL ARMANDO
DANIEL ARMANDO II
MORENA 1
MORENA 2
MORENA 3
MORENA 4
MORENA 5
MORENA 6
MORENA 7
MORENA 8
MORENA 9
EX - 2021 - 00362285 - CAT
(140/2018)
1260.0736
EX - 2021 - 00373528 - CAT
(14/2016)
EX - 2021 - 00293511 – CAT
(15/2016)
EX - 2021 - 00361579 - CAT
(13/2016)
EX - 2021 - 00432837 – CAT
(16/2016)
EX - 2021 - 00221521 – CAT
(17/2016)
EX - 2121 - 00321200 – CAT
(47/2016)
EX - 2021 - 00208240 – CAT
(45/2016)
EX - 2021 - 00294250 – CAT
(44/2016)
EX - 2021 - 00208733 - CAT
(23/2016)
EX - 2021 - 00331263 – CAT
(97/2016)
546.9333
834.7969
857.7131
2880.4365
2822.7403
3355.3649
305.1754
109.787
3121.876
1589.664
EX - 2021 - 00328638 – CAT
(72/2016)
3024.4662
EX - 2021 - 00390312 – CAT
(73/2016)
EX - 2021 - 00361695 – CAT
(74/2016)
EX - 2021 - 00293790 – CAT
(29/2019)
EX - 2021 - 00221381 – CAT
(97/2017)
EX - 2021 - 00208283 – CAT
(75/2016)
EX - 2021 - 00259078 – CAT
(76/2016)
EX - 2021 - 00294310 - CAT
(77/2016)
EX - 2021 - 00368898 – CAT
(30/2019)
2989.429
3007.1366
2967.6745
1415.8752
1606.1445
2804.9561
2961.0131
2821.5762
MORENA 10
EX - 2022 - 00508476 - CAT
2712.9283
MORENA 12
MORENA 13
EX - 2021 - 00259022 – CAT
(78/2016)
EX - 2021 - 00258895 – CAT
(79/2016)
2703.6817
3024.4662
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
CATAMARCA
GRANTED
15/11/2018
CATAMARCA
GRANTED
24/8/2017
CATAMARCA
GRANTED
24/8/2017
CATAMARCA
GRANTED
24/8/2017
CATAMARCA
GRANTED
24/8/2017
CATAMARCA
GRANTED
24/8/2017
CATAMARCA
GRANTED
24/8/2016
CATAMARCA
GRANTED
10/10/2017
CATAMARCA
GRANTED
24/8/2016
CATAMARCA
GRANTED
24/8/2017
CATAMARCA
GRANTED
7/10/2016
CATAMARCA
GRANTED
7/10/2016
CATAMARCA
GRANTED
7/10/2016
CATAMARCA
GRANTED
7/10/2016
CATAMARCA
GRANTED
18/9/2019
CATAMARCA
GRANTED
29/11/2019
CATAMARCA
GRANTED
7/10/2016
CATAMARCA
GRANTED
7/10/2016
CATAMARCA
GRANTED
7/10/2016
CATAMARCA
GRANTED
29/11/2019
CATAMARCA
APPLICATION
CATAMARCA
GRANTED
7/10/2016
CATAMARCA
GRANTED
7/10/2016
157
TENEMENT NA
NUMBER - GDE
AREA H
INTEREST
PROVINCE
STATUS
MINING
CONCESSION
MORENA 15
EX - 2021 - 00360876 – CAT
(162/2017)
2559.0852
PAMPA I
PAMPA II
PAMPA III
PAMPA 11
PAMPA IV
IRENE
PARAPETO 1
PARAPETO 2
PARAPETO 3
EX - 2021 - 00233741 – CAT
(129/2013)
EX - 2021 - 00430058 -CAT
(128/2013)
EX - 2021 - 00429001 - CAT
(130/2013)
EX - 2021 - 00372498 – CAT
(201/2018)
EX - 2021 - 00322433 – CAT
(78/2017)
EX - 2021 - 00212993 – CAT
(28/2018)
EX - 2021 - 01648141 – CAT
(133/2018)
EX - 2021 - 00235750 – CAT
(134/2018)
EX - 2121 - 00261195 – CAT
(132/2018)
690
1053.15
477.32
815
2569.3125
2052.2562
2280.5717
1729.716
1891.5621
PARAPETO III
EX - 2021 - 00854749 – CAT
1949.1255
PARAPETO 4
EX - 2021 - 01651926 – CAT
1948.9079
GOLD SAND I
TORNADO VII
DEBBIE I
DOÑA CARMEN
DIVINA VICTORIA I
DOÑA AMPARO I
ESCONDIDITA
GALAN OESTE
MARIA LUZ
NINA
PADRE JOSE MARIA I
PADRE JOSE MARIA II
PADRE JOSE MARIA III
PADRE JOSE MARIA IV
PADRE JOSE MARIA V
158
EX - 2021 - 00376209 – CAT
(238/2018)
EX - 2021 - 00208328 – CAT
(48/2016)
EX - 2021 - 00196977 – CAT
(21/2016)
EX - 2021 - 00321876 – CAT
(24/2016)
EX - 2021 - 00368383 – CAT
(25/2016)
EX - 2021 - 00294138 – CAT
(22/2016)
EX - 2021 - 00143141 – CAT
(131/2018)
EX - 2021 - 00153718 – CAT
(43/2016)
EX - 2021 - 00153678 – CAT
(34/2017)
EX - 2021 - 00360751 – CAT
(106/2020)
EX - 2021 - 00432843 – CAT
(95/2012)
EX - 2021 - 00432950 -CAT
(96/2012)
EX - 2021 - 00433095 – CAT
(94/2012)
EX - 2021 - 00433149 – CAT
(93/2012)
EX - 2021 - 00647090 – CAT
(92/2012)
853.602
6628.842
1742.85
873.1146
2420.1
2695.2986
373.4346
3166.9356
2424.9638
3125.0644
650.0094
1523.1476
1523.1476
1528.6905
1584.3384
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
CATAMARCA
GRANTED
30/8/2018
CATAMARCA
GRANTED
24/11/2016
CATAMARCA
GRANTED
8/2/2016
CATAMARCA
GRANTED
12/12/222
CATAMARCA
GRANTED
7/2/2020
CATAMARCA
GRANTED
22/3/2018
CATAMARCA
GRANTED
6/9/2018
CATAMARCA
GRANTED
24/9/2018
CATAMARCA
GRANTED
24/9/2018
CATAMARCA
GRANTED
28/11/2018
CATAMARCA
GRANTED
23/8/2022
CATAMARCA
GRANTED
23/8/2022
CATAMARCA
GRANTED
24/4/2019
CATAMARCA
GRANTED
24/11/2016
CATAMARCA
GRANTED
24/8/2017
CATAMARCA
GRANTED
24/8/2017
CATAMARCA
GRANTED
24/8/2017
CATAMARCA
GRANTED
24/8/2017
CATAMARCA
GRANTED
24/9/2018
CATAMARCA
GRANTED
14/10/2016
CATAMARCA
GRANTED
27/3/2018
CATAMARCA
GRANTED
26/10/2021
CATAMARCA
GRANTED
29/1/2021*
CATAMARCA
GRANTED
29/1/2021*
CATAMARCA
GRANTED
29/1/2021*
CATAMARCA
GRANTED
29/1/2021*
CATAMARCA
GRANTED
29/1/2021*
LAKE RESOURCES ANNUAL REPORT 2023 TENEMENT NA
NUMBER - GDE
AREA H
INTEREST
PROVINCE
STATUS
MINING
CONCESSION
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)
1507.3002
1499.7985
515.0332
TOTAL HECTAREAS:
104375.5867
(*)have been purchased but ownership still being transferred
ANCASTI - CATAMARCA
100
100
100
CATAMARCA
GRANTED
29/1/2021*
CATAMARCA
GRANTED
29/1/2021*
CATAMARCA
GRANTED
29/1/2021*
TENEMENT NA
NUMBER - GDE
AREA H
INTEREST
PROVINCE
STATUS
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
EX - 2021 - 01020531 - CAT
(52/2016)
10000
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)
9523.8616
9528.036
8938.6383
10000
8475
10000
10000
2498.5093
2949.6582
1558.993
2928.5403
2866
2999.15
2919.476
1586.6503
96772.513
TOTAL HECTAREAS
(*)have been transferred to Barbara Cozzi.
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
CATAMARCA
CATAMARCA
CATAMARCA
CATAMARCA
CATAMARCA
CATAMARCA
CATAMARCA
CATAMARCA
CATAMARCA
CATAMARCA
CATAMARCA
CATAMARCA
CATAMARCA
CATAMARCA
CATAMARCA
CATAMARCA
CATEO
GRANTED
CATEO
GRANTED
CATEO
GRANTED
CATEO
GRANTED
CATEO
GRANTER
CATEO
GRANTED
CATEO
GRANTED
CATEO
GRANTED
MINE
GRANTED
MINE
GRANTED
MINE
GRANTED
MINE
GRANTED
MINE
GRANTED
MINE
GRANTED
MINE
GRANTED
MINE
GRANTED
MINING
CONCESSION
31/3/2017*
31/3/2017*
17/8/2017*
17/8/2017*
17/5/2017
17/5/2017*
17/5/2017*
17/5/2017*
17/4/2017*
17/4/2017*
17/4/2017*
9/11/2017*
9/11/2017*
9/11/2017*
14/6/2018*
14/6/2018*
159
OLAROZ - JUJUY
TENEMENT NA
NUMBER - GDE
AREA H
INTEREST
PROVINCE
STATUS
MINING
CONCESSION
OLAROZ EAST II
MASA 12
MASA 13
MASA 14
MASA 15
MASA 24
MASA 25
MASA 26
MASA 27
MASA 28
MASA 29
MASA 30
MASA 31
MASA 32
MASA 33
MASA 34
MASA 35
MASA 36
MASA 37
MASA 38
TOTAL HECTAREAS
CAUCHARI - JUJUY
2168-D-2016
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
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
2072.47
3000
3000
3000
3000
899.79
121.96
2169.34
2894.36
2410
2375.56
2391.24
2261.65
2261.41
2277.01
2234.46
2258.7
2260.75
2260.73
2260.72
45410.15
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
GRANTED
7/9/2023
GRANTED
14/4/2023
GRANTED
20/3/2023
GRANTED
8/5/2023
GRANTED
12/10/2021
APPLICATION
APPLICATION
APPLICATION
APPLICATION
APPLICATION
APPLICATION
APPLICATION
APPLICATION
APPLICATION
APPLICATION
APPLICATION
APPLICATION
APPLICATION
APPLICATION
APPLICATION
TENEMENT NA
NUMBER - GDE
AREA H
INTEREST
PROVINCE
STATUS
MINING
CONCESSION
CAUCHARI BAJO I
CAUCHARI BAJO II
CAUCHARI BAJO III
CAUCHARI BAJO V
CAUCHARI WEST I
2156-D-2016
2157-D-2016
2158-D-2016
2154-D-2016
2160-D-2016
MASA 39
2828-M-2021
TOTAL HECTAREAS
374.8
363.1
125.3
952.1
1937.5
1749.1
5501.9
100
100
100
100
100
100
JUJUY
JUJUY
JUJUY
JUJUY
JUJUY
JUJUY
APPLICATION
APPLICATION
APPLICATION
APPLICATION
GRANTED
8/10/2019
APPLICATION
160
LAKE RESOURCES ANNUAL REPORT 2023
JAMA - JUJUY
TENEMENT NA
NUMBER - GDE
AREA H
INTEREST
PROVINCE
STATUS
MINING
CONCESSION
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
SIN EXPTE
2137-P-2016
2140-P-2016
2144-P-2016
2985.5
3000
3000
3000
3000
3000
3000
2548.2
2405.8
2999.07
2999.07
2999.02
2848.5
2492.78
2975.88
2965.15
2783.14
892.24
2950.1
2210
1912.77
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
30/6/2022
GRANTED
1/2/2023
APPLICATION
APPLICATION
GRANTED
1/2/2023
APPLICATION
GRANTED
30/6/2022
GRANTED
29/7/2022
APPLICATION
APPLICATION
APPLICATION
APPLICATION
APPLICATION
APPLICATION
APPLICATION
APPLICATION
APPLICATION
APPLICATION
APPLICATION
APPLICATION
TOTAL HECTAREAS
56967.22
Total PM Lake Resources 116
161
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