lakeresources.com.au
Annual
Report
2024
b
LAKE RESOURCES ANNUAL REPORT 2024
1
CORPORATE DIRECTORY
Directors
Stuart Crow
Non-Executive Chairman
David Dickson
Managing Director/CEO
Robert Trzebski
Non-Executive Director
Management
Don Miller
Chief Financial Officer
Justin Olson
Chief Legal, Compliance & Risk
Officer and General Counsel
Mark Anning
Head of Legal, Australia and
Company Secretary
Amalia Sáenz
Senior Vice President, Corporate
Affairs and Country Manager,
Argentina
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: +61 2 9698 5414
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
Citibank, N.A., Sydney
Stock exchange listings
Australian Securities Exchange
(ASX code: LKE)
OTCQB: LLKKF
Website address
www.lakeresources.com.au
2
FY2024
HIGHLIGHTS
Kachi Phase One Definitive
Feasibility Study shows post-tax
NPV of US$2.3B and IRR of 21%
Maiden Ore Reserve
demonstrates
Kachi project capable
of delivering
Successful lithium
carbonate testing, one of
the largest test programs
undertaken by a DLE project
Production
Environmental
Impact Assessment
submitted for Phase
One of Kachi project
25
ktpa operation
US$2.3B
LAKE RESOURCES ANNUAL REPORT 2024
3
Kachi Phase One
Definitive Feasibility
Study outlines clear
path to 25ktpa battery
grade lithium carbonate
production with
expansion possibilities
subject to further study
LOI signed with
Argentine energy
infrastructure
company for
Kachi power
supply
Post-balance date:
Lilac Solutions
identifies cost savings
of up to 50% for
DLE equipment and
confirms long-term
lithium recovery rates
of over 90%
Lake cuts global
headcount by additional
50%; strategic partnering
process continues; non-
core asset sale process
underway for Paso de
Jama, Olaroz, Cauchari
and Ancasti projects
CONTENTS
Message from the CEO
5
Message from the Chair
8
Review of Operations
10
Directors’ Report
17
Auditor’s Independence
Declaration
55
Consolidated Statement
of Profit or Loss and other
Comprehensive Income
56
Consolidated Statement
of Financial Position
57
Consolidated Statement
of Changes in Equity
58
Consolidated Statement
of Cash Flows
60
Notes to the Consolidated
Financial Statements
61
Consolidated Entity
Disclosure Statement
115
Directors’ Declaration
116
Independent Auditor’s Report 117
2024 Corporate
Governance Statement
121
Additional ASX Information
138
Resource Estimates
and Governance
142
Schedule of Tenements
143
4
LAKE RESOURCES ANNUAL REPORT 2024
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 production of sustainable, high
purity lithium from its flagship Kachi Project
in Catamarca Province within the Lithium
Triangle in Argentina.
This ion exchange extraction
technology delivers a solution
for two rising demands – high
purity battery materials to
avoid performance issues, 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. Lake is
building its business to
meet the growing demand
for high-quality lithium
needed to meet the world’s
decarbonisation ambitions.
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 physically and
by returning almost all brine to
its source.
Lilac and Lake are working
together to set a new standard
for project development in
the lithium industry. 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%.
This is a proven and more
efficient way to refine and
produce battery-grade lithium
carbonate. The ion exchange
technology produces a lithium-
rich solution without long
lead-time and environmentally
disruptive evaporation pond
concentration – allowing Lake
to produce high-quality lithium
sustainably and at scale.
Lilac and Lake are strategically
aligned through a 25% project
earn-in on the completion
of technology testing,
demonstration plant validation
and end-product qualification.
On 19 December 2023, Lake
Resources announced the
results of its Definitive
Feasibility Study (DFS) for
phase one of the globally
significant Kachi lithium
brine project in Argentina. The
Kachi Project Phase One DFS
demonstrates that Kachi is
a top tier project, backed by
a significant resource and
strong economics positioning
it competitively within the
growing lithium market.
LOCATED IN ARGENTINA’S
LITHIUM TRIANGLE
Lake’s flagship Kachi Project
is 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.
Lake also has three additional
early-stage projects in
this region.
5
MESSAGE FROM THE CEO
To my fellow shareholders,
I am pleased to present Lake Resources’ FY24 Annual Report.
Lake has had a significant year operationally, against a
backdrop of challenges facing the broader lithium sector.
I am grateful to our staff and everyone associated with
Lake for remaining steadfast in their determination to
build a better Company, despite facing extremely difficult
market conditions.
Our focus during this time has been, and will continue to be,
on those things we can control, to ensure our Company is in
the best possible position to benefit from the eventual upturn.
The work done this past year has been very important in this
regard, laying the groundwork for our future growth.
DFS shows Kachi a top tier project
Released in December 2023, the Kachi project’s Phase One
Definitive Feasibility Study (DFS) demonstrated that Kachi
is a tier one project, backed by a significant resource and
strong economics that position it competitively within the
lithium market.
The financial highlights included a post-tax net present value
(NPV) of US$2.3 billion and an internal rate of return (IRR)
of 21%, with annual average EBITDA of US$635 million and
an EBITDA margin of 76%. It would generate US$21 billion in
revenue and US$16 billion in EBITDA for Phase One, making it a
very attractive project.
Importantly for our broader stakeholders, Kachi will advance
sustainable and responsible lithium production through the
application of ion exchange Direct Lithium Extraction (DLE)
technology from our partner, Lilac Solutions.
The Phase One DFS has marked a key milestone in Kachi’s
development, building on the field, test and engineering work
performed over more than two years and representing a credible
and de-risked execution plan to support delivery of the project.
Released in conjunction with the DFS, Lake also announced
a maiden Ore Reserve for Kachi which demonstrated that the
mine plan is capable of delivering sufficient lithium brine for a
planned 25 ktpa operation.
Significantly, the feed grade will average above 245 mg/L with
minimal dilution, ensuring the operation can be developed in
an environmentally sustainable manner. The Ore Reserve for
the 25 ktpa operation extracts only a small percentage of the
Mineral Resource Estimate.
Prior to the release of the DFS, in August 2023 Lake further
de-risked the DLE process following successful extraction
and injection tests at Kachi. The testing confirmed highly
favourable reservoir hydraulic properties at Kachi, allowing
Lake to optimise the future wellfield.
A month later, Lake announced the successful completion of
a lithium carbonate test program, producing battery-grade
lithium carbonate from Lilac DLE chloride eluate. These tests
further proved the extraction technology, reinforcing Lake’s
great confidence in the DLE process.
And in November 2023, Lake reported another success with
Kachi’s Measured and Indicated Resources increasing from
2.9 to 7.3 Mt LCE, with the total resource estimate exceeding
10.6 Mt LCE. These results highlight the continued resource
growth at Kachi since the maiden resource estimate was
announced in November 2018.
Strategic refresh
Lake started calendar year 2024 in a strong position
following the successful Kachi DFS. However, the lithium
market environment continued to worsen, requiring Lake
management to rapidly adapt in order to preserve shareholder
capital, extend its financial runway and ensure the
advancement of value-adding activities.
In March 2024, Lake announced a number of actions aimed at
“right-sizing” the Company, including a substantial reduction
in global headcount and other cost-saving initiatives. While
these measures are never easy, they were necessary to
ensure Lake preserves its financial flexibility amid difficult
market conditions.
Lake is also actively engaging with a number of potential
strategic partners with the goal of securing a strategic equity
partner for Kachi’s development.
Concerning the project, there have also been a number
of other milestones achieved during 2024, including
the submission of a Production Environmental Impact
Assessment (EIA) for Phase One of the Kachi project
to the Catamarca Ministry of Mining in Catamarca
Province, Argentina.
6
LAKE RESOURCES ANNUAL REPORT 2024
This demonstrates that Lake has given due attention to
Kachi’s impacts on the environment and local community.
Importantly, the EIA shows that Lake’s innovative and
sustainable project development plan will have a small water
footprint, amongst the lowest for lithium brine projects per
tonne, compared to evaporation ponds or absorption DLE
technology. Other environmental benefits for Kachi include its
small land footprint and low solid waste output compared to
traditional evaporation ponds and hard rock projects.
Lake continues to put priority on caring for the environment
and collaborating with the local community. We look forward
to bringing future employment and economic growth
to Catamarca Province, while contributing to the global
energy transition.
In another important operational update, Lake signed in May
2024 a ‘Letter of Intent’ (LOI) with YPF Luz, a leading Argentine
sustainable electric power generation company. Under the LOI,
Lake and YPF Luz are engaging in discussions regarding the
construction of a high voltage power line to Kachi and delivery
of the power supply necessary for the Kachi project.
Establishing a power solution for Kachi is a critical milestone
for the project’s development. Importantly, YPF Luz has
demonstrated expertise in bringing power to remote areas of
Argentina and shares Lake’s commitment to sustainability.
Post-balance date, on July 1, Lake announced further cost
reductions along with the exploration of a possible sale of
non-core assets and lithium tenements located in Jujuy
and Catamarca Provinces, namely the Paso de Jama, Olaroz,
Cauchari and Ancasti projects. Given that Kachi is Lake’s
flagship project, the timing is right for marketing the sale of
these assets to optimise the Company’s financial runway.
Significantly, on July 19, Lake welcomed the release of Lilac’s
fourth-generation ion exchange technology and technical
white paper. The white paper showed Lilac has improved long-
term lithium recovery to over 90% on salar brines and reduced
core extraction equipment cost by up to 50%, resulting in
total cost savings across the DLE technology of up to 25%.
In addition, 10% lower reagent consumption is expected to
positively impact project operating costs.
These are substantial savings which we expect to enhance
Kachi’s economics, potentially reducing the overall capex
requirement by up to 10%. We look forward to working with
Lilac to implement these improvements at Kachi, delivering a
more cost-competitive project for the benefit of shareholders.
Finally, my enormous thanks to Lake directors, employees,
contractors and everyone involved with our Company after
what has been an enormously challenging year.
Despite recent difficulties, the longer-term outlook is
extremely positive for Lake and the lithium sector. I
hope you will stay with us for the journey as we work to
deliver responsible lithium supply to facilitate the world’s
energy transition.
David Dickson
Managing Director & CEO
7
LAKE RESOURCES ANNUAL REPORT 2024
8
MESSAGE FROM THE CHAIR
To my fellow shareholders,
Thank you for your support in what has been a year of
substantial progress at Lake.
In the short term, lithium is in a bear market, with prices
having fallen significantly and new projects and investments
being curtailed as a result. Ultimately though, we believe
that the market will rebalance, with the long-term structural
thematic underpinning lithium demand remaining intact.
For example, based on today’s policy settings, almost one in
three cars on the road in China by 2030 will be electric, and
almost one in five in both the United States and the European
Union, according to the International Energy Agency.
Industry analysts, Benchmark Mineral Intelligence, project
that the lithium market needs US$94 billion of investment
simply to meet the anticipated 2030 demand, and double that
to meet 2040 demand.
Lithium demand is expected to double by 2026 and triple
by 2030 from 2023 levels, presenting a compelling case for
investment. Importantly, the lengthy lead times in developing
new projects and recent curtailments could lead to lithium
raw material deficits emerging from 2028 and extending to
around 1.8 million tonnes LCE by 2040.
In short, the world needs 100 Kachi Phase One projects to
balance the market by 2030.
Argentina holds 12% of global lithium reserves and is currently
the world’s fourth-largest lithium producer, having some of the
largest and most productive lithium deposits in the world. The
recent passage of the ‘Incentive Regime for Large Investments’
has enhanced Argentina’s attractiveness as a recipient of
foreign investment, with the current administration showing a
positive stance towards the mining and lithium sector.
The United States and Argentina are continuing discussions on
facilitating greater bilateral trade and investment; talks which
Lake welcomes. Through these talks, we are optimistic that a
pathway will be found to facilitate greater Argentinian lithium
supply into U.S. battery production, with potential access to U.S.
‘Inflation Reduction Act’ subsidies.
It is therefore important for Lake to continue advancing our
flagship project while preserving shareholder capital, ensuring
that your Company is ready to seize the opportunities that will
emerge from the projected supply deficit.
In this regard, I would like to thank Lake shareholders for
supporting our Share Purchase Plan and welcome all new
investors who have participated in recent equity raisings.
It has also been refreshing to meet Lake shareholders during
our recent investor briefings in Australia, to get first-hand
feedback. All of the shareholder sessions we have held have
been well attended, which is extremely encouraging, while
we also continue to receive a positive response from many
stockbrokers and fund managers.
With the benefit of recent cost-cutting initiatives, including
the significant reduction in global headcount, Lake has
trimmed expenditures enormously, with consumption of cash
reserves to reduce further through the second half of 2024.
The potential sale of non-core assets in Argentina will
also strengthen Lake’s financial position as we focus on
our flagship Kachi project and its development, including
securing a strategic partner.
Lake also sees significant potential for enhancing capex and
opex efficiencies between now and the start of production,
with a number of optimisation opportunities identified.
Adjusting to market conditions has required tough decisions
by your Board. I would like to sincerely thank our former Non-
Executive Directors, Howard Atkins, Dr Cheemin Bo-Linn and
Ana Gomez Chapman, who all, further enabling the Company
to adjust to market conditions, voluntarily resigned in July
2024 after making significant contributions to Lake.
Looking ahead, Lake is continuing to advance the strategic
partnering process for Kachi. We are focused on ensuring the
process maximises Kachi’s value, with a competitive strategic
partnering process to secure equity investment and offtake
agreements. Because of the current lithium market conditions,
we expect that the strategic partnering process will take longer
than initially expected. The successful Kachi DFS has shown
the value of our flagship project, and I am confident we will
secure the right partner to drive our development journey.
9
In this regard, our technology partner, Lilac’s recent progress
has been extremely encouraging, positioning its DLE
technology as a leader in the field.
An ESG-friendly, sustainable production solution is essential
for the communities where we operate together with global
investors and industry players, and this is exactly what
Lilac’s technology will help deliver with its higher lithium
recovery rates, lower water and land usage and reduced solid
waste volume.
Lake also continues to build strong relationships with all
levels of government in Argentina together with the local
community and other stakeholders, ensuring we maintain a
social licence to operate.
Kachi’s development will deliver better infrastructure and
significant employment and economic opportunities for the
local community and we are working diligently to maximise
the local benefits. Lake has continued to engage with the
community, holding a number of public information sessions,
while promoting training and other job opportunities as well
as ensuring the health and safety of our workforce.
As an investor it is important to evaluate any company on
its merits. I believe Lake continues to offer a compelling
opportunity, due to its robust market and project
fundamentals; a globally significant resource and proven,
sustainable production; and compelling project economics,
with opportunities for further optimisation.
The security of future lithium supply is virtually impossible
without Argentina. Lake is in the right place at the right time
with the right product for the global decarbonisation drive.
Thank you again for your support and I look forward to meeting
you during Lake’s shareholder meetings in Australia.
Stuart Crow
Non-Executive Chairman
LAKE RESOURCES ANNUAL REPORT 2024
10
REVIEW OF OPERATIONS
Kachi Project
It was an exciting year at Lake’s flagship Kachi Project in
Catamarca. The JORC-compliant total mineral resource
estimate grew significantly during fiscal 2024 to more than
10.6 million tonnes (Mt) of contained battery grade lithium
carbonate equivalent (LCE), with 7.3 Mt of LCE in the Measured
and Indicated Resource category. Additionally, significant
project milestones were achieved, including:
August 2023 – Successful extraction and injection tests.
September 2023 – Completion of lithium carbonate tests
by Saltworks Technologies.
November 2023 - Updated JORC Mineral Resource Estimate.
December 2023 – Maiden JORC Ore Reserve Statement.
December 2023 - Phase One Definitive Feasibility Study
(DFS) for the planned 25-year 25,000 tonnes per annum
(tpa) LCE operation.
March 2024 – Submission of the Production Environmental
Impact Assessment (Informe de Impacto Ambiental -
Etapa de Explotación - Proyecto Kachi).
Successful field operations and subsurface characterisation
programs provided the expansive data set that underpinned
these studies. The FY2024 field program was a continuation
of the field program completed in FY2023, and included three
drillholes and three pumping and injection tests on wells
drilled in the previous fiscal year.
Highlights included:
Three drillholes completed to over 600m; all confirmed the
presence of lithium brine in sediments similar to those
encountered to 400m depth (Figure 1).
The footprint of the lithium brine extent grew dramatically
to the north and south, as well as vertically.
Higher grade lithium concentrations measured in the
southern sector at K24D41 and K25D44 (Figure 2) returning
grades of 180-348 mg/L lithium over 445m (166 – 610m) with
an average of 267 mg/L and 230 - 302 mg/L lithium over
407m (215 – 622m) with an average of 257 mg/L, respectively.
Northern step-out hole K23D40 intersected coarse-
grained alluvial fan materials and averaged 228 mg/L over
322m with a maximum of 254 mg/L. This hole is 3.5 km
northwest of K22R39.
The consistency of the lithium concentration and brine
chemistry in the new step out holes demonstrated how
well the brine has circulated and mixed within the basin.
Additional data from pumping tests and infill drilling has
led to improved lithium grades in the central resource area.
Extraction and injection tests confirmed highly favourable
subsurface conditions (Figure 1) for both lithium extraction
and injection in the central resource area where the
Measured and Indicated Resources are located (refer ASX
announcement 16 August 2023).
Lithium carbonate tests conducted by Saltworks
Technologies in Canada, producing battery-grade lithium
carbonate from Lilac DLE lithium chloride eluate (refer ASX
announcement 26 September 2023).
Mineral Resource Estimate
Lake’s concession holdings are expansive and cover an area of
more than 103,000 Ha. The updated JORC-compliant resource
estimate for the Kachi Project from November 2023 comprised
7.3 Mt LCE as Measured and Indicated Resource and 3.3 Mt LCE
as Inferred Resource (Figure 2&3 and Table 1).
Step-out holes and deeper drilling to 600m bgs (metres
below ground surface) led to significantly larger resource
estimates than previous mineral resource updates.
Measured and Indicated Resources increased from 2.9
to 7.3 Mt of LCE defined to a depth of 600m over 143.8
square kilometres.
11
Surrounding the Measured and Indicated Resources are
Inferred Resources of approximately 3.3 Mt LCE defined
over 130.9 sq km.
The updated total resource estimate exceeds 10.6 Mt
of LCE.
Significant exploration targets remain and are estimated
to contain between 3.6 Mt and 14.7 Mt LCE.
The Kachi Mineral Resource Estimate has steadily grown in
size since the maiden resource in 2018, adding more than
2 Mt LCE since 2023 (Figure 3 and Table 2).
Ore Reserves Statement
The extensive characterisation data set, inclusive of geologic,
hydrogeologic, hydrochemical, and geophysical data formed
the basis for the conceptual and numerical models that are
the basis for the Ore Reserve estimate and Environmental
Impact Study.
The JORC-compliant Ore Reserve Statement included the
following key findings:
Modelling of the well-field development plan indicated the
planned mine design will result in feed grades and rates
in excess of those required to produce 25,000 tpa LCE over
the Life-Of-Mine (LoM).
Ore Reserves (Table 3) were classified into Proved and
Probable Reserves based on industry standards, the
Competent Person’s experience, and confidence in data
and hydrogeologic model performance.
The hydrogeologic model reproduced historical data very
well, which improves the predictive reliability of the model
simulations related to lithium recovery and injection.
Proved Reserves were specified for the first seven years
despite very high production from the Measured Resource.
Probable Reserves were conservatively assigned for the
last 18 years of the LoM, as model reliability is expected to
continue to improve with operational data.
The well-field development plan includes 16 extraction
wells and 21 injection wells, with extraction focused on the
core of the salar where lithium concentration is highest.
Simulations indicated that the well-field design can
exceed processing plant design capacity, with potential
unconstrained potential for LCE production of 834,000
tonnes relative to the reserve’s 624,400 tonnes.
Plant design capacity is the constraint for LCE production.
Feed grade in Years 1-7 of operations is predicted to
be 257 mg/L.
Feed grade in Years 8-25 of operations averages 245 mg/L.
Dilution as a result of injection of spent brine on the
western and eastern margins of the well-field is minimal
(less than 10% after 25-years of operations).
Production in Years 1-7 is predicted to be 94% from
Measured Resources with the remainder from
Indicated Resources.
Production in Years 7-25 is predicted to be 85% from
Measured Resource with 9% from Indicated Resources.
Significant upside exists for larger production rates
with total reserves representing less than 6% of the
total resource.
Modelling indicates that the planned operation results in
minimal changes to the hydrogeologic system, including
environmentally sensitive areas.
Phase One Definitive Feasibility Study
A major milestone for the Kachi Project was the release of the
Phase One DFS. Highlights included:
A post-tax NPV8 of US$2.3 billion and an internal rate of
return (IRR) of 21%.
Targets battery grade lithium carbonate revenue of US$21
billion and US$16 billion EBITDA for the 25-year LoM.
Targets annual average EBITDA of US$635 million and
EBITDA margin of 76%.
US $6.05 / kg of LCE estimated run rate Opex for Phase One.
25-year mine life supported by maiden Ore
Reserve statement.
Phase One targets production of 25 ktpa over the LoM.
LAKE RESOURCES ANNUAL REPORT 2024
12
DLE process tailored to mitigate impact on the local
community with minimal disruption to land, freshwater
table, and water usage.
The Project targets production of consistent battery grade
lithium carbonate (>99.5% purity) at site without the need
for further refining or processing.
Proven process from brine extraction to battery grade
lithium carbonate.
The Project operated two campaigns at the demonstration
plant processing 5.2 million litres of brine and producing
over 200,000 litres of lithium chloride eluate while
also allowing for increased operational experience and
optimisation of Lilac’s DLE technology.
Additionally, the Project has produced in excess of 1,300
kilograms of >99.5% purity lithium carbonate at Saltworks’
demonstration facility to ensure that the commercial
flowsheet will meet expectations and to have in place
product samples for potential offtake parties.
Utilising Lilac’s proprietary ion-exchange DLE technology
eliminates the need for upstream or downstream
evaporation ponds for lithium concentration, reducing the
footprint of a traditional brine evaporation operation by >90%.
The demonstration plant vessels, which hold the ion-
exchange material, are approximately one-third the size
of commercial-scale vessels. This significantly reduces
scale-up risk and increases process uptime.
The extraction plant is conservatively designed for 80%
lithium recovery within the DLE process and an overall
plant recovery of lithium of >75%.
Production Environmental Impact Assessment
A comprehensive Environmental Impact Assessment (EIA)
for production activities was submitted in March 2024.
The EIA was prepared by global mining and environmental
consultancy Knight Piesold with technical support from
additional subject matter experts in groundwater modelling
and Lake’s technical team.
As part of the review process, the lead review agency, the
Ministry of Mining of Catamarca, held a two-day presentation
in July 2024 of the EIA led by global consulting firm Knight
Piesold and Lake Resources’ technical teams. The meeting
was attended by several government agencies participating in
the EIA process, including the Provincial Directorate of Mining
Environmental Management, Provincial Directorate of Social
Promotion and Corporate Social Responsibility, Secretariat of
Water Resources, Secretariat of Environment, Secretariat of
Energy, Secretariat of Indigenous Affairs, Provincial Directorate
of Archaeology and Palaeontology, and municipal authorities.
As part of the meeting, Lake shared the highly advanced brine
management plans, which have been developed to maintain
baseline hydrogeological conditions by reinjecting spent
brine and hence preserve environmentally sensitive areas. The
project is designed with an industry-leading low freshwater
consumption of less than 24 cubic metres per tonne of LCE
over the course of the operation.
Front End Engineering Design (FEED)
YPF Luz has been advancing the FEED for the power delivery
system for the Kachi Project. As of August 2024, significant
progress has been achieved by YPF Luz including geotechnical
investigations of some key infrastructure sites. The
Environmental Impact Assessments for the Provinces of Salta
and Catamarca will be submitted by Q4 2024, and the FEED
Study is expected to be completed by the end of year.
Site Reclamation
As the project transitions from exploration to exploitation,
Lake has been carrying out the reclamation activities required
by the exploration permit. These efforts involve removing the
majority of the temporary camp’s infrastructure, regrading
and revegetation, and consolidating assets and offices into
the former DLE demonstration plant building. As part of this
process Lake has engaged with community members to
ensure that local input is integrated into current site plans
and the permanent camp configuration.
Figure 1: Hydrogeological east-west cross-section of the Carachi Pampa Basin, illustrating the sand and silt units that dominate the salar
area and coarser-grained materials of the alluvial fans west of the salar core. The thick sand horizons in the salar core are the focus of planned
production wells with injection wells planned west of the salar in the alluvial fans and to a lesser extent east of the salar production wells.
13
Figure 2: Lake Resources’ properties and drill platform locations in the Kachi Project area, showing drilling concentrated over the salar area, with
the resource outlines shown to 400 metres depth. The map includes Measured Resource (purple), Indicated Resource (rose), and Inferred Resource
(orange). With the exception of the location of drillhole K25, this map is unaltered from what was disclosed and made available on the Company’s
website and on the ASX in the Company’s JORC update dated 22 November 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 22 November 2023 have not materially changed since that date.
LAKE RESOURCES ANNUAL REPORT 2024
14
Figure 3: Change in Measured, Indicated and Inferred Lithium Resource at the Kachi Project since 2018. This figure was disclosed and made
available on the Company’s website and on the ASX in the Company’s JORC update dated 22 November 2023.
Table 1: Updated resource estimate of contained lithium for the Kachi Project – as of 22 November 2023*
Measured November 2023 (to 400 m depth)
Unit
Sediment
Specific
Yield %
Brine volume
Litres
Li
mg/L
Li grams
Li
Tonnes
Tonnes
LCE
Volume m3
m3
A
11,001,000,000
0.078
858,078,000
858,078,000,000
210
179,783,644,000
180,000
956,000
B
4,366,100,000
0.081
352,090,000
352,090,162,000
229
80,628,647,000
81,000
429,000
C
8,007,400,000
0.068
544,503,000
544,503,200,000
230
125,427,401,000
125,000
667,000
Fan West
8,833,000,000
0.095
839,135,000
839,135,000,000
220
184,609,700,000
185,000
982,000
Total
32,207,500,000
-
2,593,806,000
2,593,806,362,000
-
570,449,393,000
571,000
3,035,000
Indicated November 2023 to 600 m
Unit
Sediment
Specific
Yield %
Brine volume
Litres
Li
mg/L
Li grams
Li
Tonnes
Tonnes
LCE
Volume m3
m3
A (South)
3,694,300,000
0.076
278,924,000
278,924,452,000
181
50,485,326,000
50,000
269,000
B (South)
1,489,000,000
0.075
111,543,000
111,543,670,000
179
19,959,624,000
20,000
106,000
C (South)
4,382,400,000
0.067
294,407,000
294,407,879,000
182
53,582,234,000
54,000
285,000
A (North)
3,075,200,000
0.095
292,144,000
292,144,000,000
232
67,891,052,000
68,000
361,000
B (North)
4,294,400,000
0.095
407,968,000
407,968,000,000
241
98,166,484,000
98,000
522,000
C (North)
9,188,400,000
0.092
845,333,000
845,332,800,000
182
206,021,447,000
206,000
1,096,000
400 –
600m
Under
Salar
12,230,170,000
0.066
806,922,000
806,922,156,000
242
195,275,162,000
195,000
1,039,000
400 –
600m
West Fan
Deep
4,858,200,000
0.092
446,954,000
446,954,400,000
244
109,056,874,000
109,000
580,000
Total
43,212,070,000
3,484,197,000
3,484,197,358,000
800,438,203,000 800,000
4,258,000
14,000,000
Inferred Resource
Measured and Indicated Recourse
Lithium Carbonate Equivalent (tonnes)
12,000,000
10,000,000
8,000,000
6,000,000
4,000,000
2,000,000
Nov 2018
Jan 2023
Jun 2023
Nov 2023
0
15
Combined Measured and Indicated
75,419,570,000
6,078,004,000
6,078,003,721,000
1,370,887,596,000
1,371,000
7,293,000
Inferred November 2023
Unit
Sediment
Specific
Yield %
Brine volume
Litres
Li
mg/L
Li grams
Li
Tonnes
Tonnes
LCE
Volume m3
m3
A
4,756,500,000
0.08
378,325,000
378,325,351,000
185
69,975,435,000
70,000
372,000
B
1,671,300,000
0.079
131,198,000
131,197,886,000
191
25,101,960,000
25,000
134,000
C
5,287,600,000
0.074
393,746,000
393,746,422,000
218
85,950,119,000
86,000
457,000
Fan North
8,895,490,000
0.081
716,324,000
716,324,455,000
232
166,081,974,000
166,000
884,000
Fan South
12,248,490,000
0.064
781,249,000
781,249,112,000
239
186,718,538,000
187,000
993,000
Under
volcano
6,718,700,000
0.074
500,471,000
500,471,260,000
192
96,334,211,000
96,000
512,000
Total
39,578,080,000
2,901,314,000
2,901,314,485,000
630,162,237,000
630,000
3,352,000
* This table reproduces the data from the 22 November 2023 ASX announcement - Lake Resources JORC Update Increases Measured and Indicated
Resource by 250% for its Flagship Kachi Project. There have been no material changes since the date of this announcement.
Notes on Mineral Resource Estimate:
JORC definitions were followed for Mineral Resources.
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 reserve is reported at a 150 mg/l cut-off.
Numbers may not add due to rounding.
Specific Yield (Sy) = Drainable Porosity.
Lithium is converted to lithium carbonate (Li2CO3) with a conversion factor of 5.323. For details on the lithology units please
refer to the 15 June 2023, 22 August 2023, 4 October 2023 and 22 November 2023 ASX announcements.
See Figure 2&3 for the map showing the geographical area for the various Mineral Resource classifications. All are constrained
to Kachi Project Concessions.
The CP for the Mineral Resource Estimate is Andrew Fulton.
Table 2: Comparison of defined resource for the Kachi Project – 2024 and 2023
Year
Measured
(Tonnes LCE)
Indicated
(Tonnes LCE)
Measured and
Indicated
(Tonnes LCE)
Inferred
(Tonnes LCE)
Total
(Tonnes LCE)
2024
3,035,000
4,258,000
7,293,000
3,352,000
10,645,000
2023
2,210,600
715,601
2,926,202
5,183,199
8,109,401
Increase in Resource
+824,400
+3,542,399
+4,366,798
-1,831,199
+2,535,599
#The 2023 annual report and the Kachi Mineral Resource Estimate from June 2023 that forms the basis of the resource included in the 2032 Annual
Report are available at www.lakeresources.com. au and www.asx.com.au.
LAKE RESOURCES ANNUAL REPORT 2024
16
Table 3: Proved and Probable Lithium Reserves
Reserve Category
Years
Lithium (Tonnes)
LCE (Tonnes)
Average Lithium (mg/l)
Proved
1
3,600
18,900
258.6
Proved
2-7
28,500
151,400
257.2
Probable
8-25
85,400
454,100
245.0
Total
1-25
117,400
624,400
Notes to the Reserve Estimate:
Lithium is converted to lithium carbonate (Li2CO3)
equivalent (LCE) with a conversion factor of 5.32.
The effective date for the Reserve Estimate is based on the
November resource update (22 November 2023).
The reserve above includes processing losses in the plant
and transfer ponds.
Numbers may not add due to rounding effects.
Projected processing is based on first year rate of 18,921
tonnes LCE.
Projected processing for Years 2 - 25 rate of 25,228
tonnes LCE.
Reserve estimates are based on the anticipated lithium
production schedule with an economic cut-off grade of 150
mg/L lithium and a 77.6% average recovery,
The CP for the Ore Reserve Statement is Andrew Fulton.
Additional Property Updates
Paso de Jama
Olaroz
Ancasti
Cauchari
The Paso de Jama Lithium Brine Project in Jujuy Province
comprises over 50,000 hectares. Initial surface geophysical
surveys, passive seismic and transient electromagnetic (TEM)
were completed in 2022. Drilling and testing occurred through
the end of 2022 and resulted in more than 1,700m of drilling
and five small diameter wells.
Activities in 2023 included analysing and processing the
investigation results, performance of small-scale hydraulic
tests in several wells and laboratory properties analysis for
physical characteristics including drainable porosity.
During FY2024, activities focused on analysing available data,
updating the exploration strategies, development of project
characterisation reports, environmental monitoring, social
engagement and conversion of tenements to concessions.
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 during FY2024. These efforts have laid the
groundwork to initiate surface geophysical studies including
passive seismic and TEM, which are planned for 2025.
The Ancasti or Catamarca Pegmatite Lithium Project,
comprises 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.
During FY2024, data from the 2018 field program were
compiled and analysed. The geologic and chemical data were
used to define conceptual models and form the basis for an
updated exploration program. The expansive surface sampling
program is expected to start in FY2025.
The Cauchari Lithium Brine Project in Jujuy Province was
successfully drilled for the first time during FY2020. 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 FY2024. However, environmental
monitoring and community engagement activities
are ongoing.
As described in the 12 March 2024, Updated Investor
Presentation1, Lake has been exploring a divestiture plan for
the additional properties described in this section of the
report since May 2024.
1 Refer to ASX Announcement 12 March 2024.
Lake Resources NL
Directors' report
for the year ended 30 June 2024
Your Directors present their report on the Consolidated entity consisting of Lake Resources NL (“Lake”, “Lake
Resources”, “Company” and “Consolidated entity”) and the entities it controlled at the end of, or during, the year
ended 30 June 2024.
Directors and company secretary
The following persons were Directors of Lake during the whole of the financial year and up to the date of this report,
unless otherwise stated:
S. Crow, Non-Executive Chairman
D. Dickson, Managing Director and Chief Executive Officer
R. Trzebski, Non-Executive Director
C. Bo-Linn, Non-Executive Director (resigned 25 July 2024)
H. Atkins, Non-Executive Director (resigned 25 July 2024)
A. Gomez Chapman, Non-Executive Director (resigned 25 July 2024)
The company secretary is Mr. Mark Anning.
Principal activities
During the year the principal continuing activities of the Consolidated entity consisted of:
(a)
Exploration and evaluation 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 $54,022,596 (2023 loss: $47,253,043).
Corporate Strategy
During the period, Lake made excellent operational progress on its flagship Kachi Project (“Kachi”, “Kachi Project” or
“Project”) which culminated in the completion of the Kachi Project Phase One Definitive Feasibility Study (“DFS”) and
maiden Ore Reserve statement supporting a 25-year life of mine (refer to ASX announcement 19 December 2023),
Additional milestones include the submission of a Production Environmental Impact Assessment (“EIA”) for Phase
One of the Project to the Catamarca Ministry of Mining in Catamarca Province, Argentina (refer to ASX
announcement 25 March 2024) with an expected approval in the first half of the 2025 calendar year, and the
execution of a non-binding Letter of Intent (“LOI”) with YPF Luz, a leading power generation company in Argentina, to
evaluate and negotiate agreements with regard to a high voltage line and delivery of the power supply for Kachi (refer
to ASX announcement 5 May 2024). YPF Luz will perform the Front-End Engineering Design (“FEED”) for the
proposed power delivery system.
With these operational milestones complete, the focus of the Company is the strategic delivery of Kachi. In late
November, Lake and Lilac Solutions ("Lilac"), its technology and operating partner of Kachi, engaged Goldman Sachs
as financial adviser in connection with exploring a potential strategic partnership for Kachi (refer to ASX
announcement dated 29 November 2023) (the "Process"). The Process was officially launched following the
completion of the DFS. The successful selection of a suitable partner is an essential cornerstone to the development
of Kachi, and Lake is committed to executing the Process in a thorough and prudent manner.
1717
Lake Resources NL
Directors' report
for the year ended 30 June 2024
Corporate Strategy (continued)
Aligning Developmental Timelines to Strategic Partner Selection Process
In running the Process, Goldman Sachs is acting as financial advisor to the operating entity of Kachi. The Company
actively conducted outreach to a wide array of potential strategic partners and is now participating in detailed
discussions with a select group of interested parties. While the Company initially expected the Process to conclude in
the second half of the year (2H CY24), with final investment decision (“FID”) to follow approximately nine to twelve
months thereafter (CY25), current difficulties in the lithium sector could delay these efforts, which may further delay
the previous target date for FID. Additionally, the timeline for awarding engineering, construction, power and other
agreements to finalise the design and construction program for Kachi may also be impacted by the timing and
outcome of the Process, given that the type of strategic partner ultimately selected could influence these decisions.
Corporate and Financial
The key near-term objectives of the Company are to reduce costs to right-size the Company and ensure Lake
preserves its financial flexibility and the advancement of value-adding activities amid difficult lithium market
conditions, and to successfully complete the Process.
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 Kachi (refer to ASX announcement
28 September 2021). These Expressions of Interest remain in place and discussions with UKEF and EDC are
ongoing.
Additionally, Citi and J.P. Morgan, joint coordinators on the proposed debt financing for Kachi, amended and
extended its agreement with the Company, reflecting the revised project development timeline (refer to ASX
announcement 29 January 2024).
Subsequent to the end of the period, Lilac, a 20% owner of Kachi, completed a Series C capital raise of US$145
million from existing investors, including Breakthrough Energy, BMW, and Sumitomo.
Cash position
Lake held cash of A$22,902,013 as at 30 June 2024 with no debt.
Operations
Overview of Operations for the Year
Kachi Lithium Brine Project - Catamarca Province, Argentina
The technical operations teams achieved several significant milestones over the past year. The Lilac DLE technology
received third-party validation after commissioning and operating the on-site demo plant for over one year. The
demonstration program concluded site operations activities in December 2023. In total, the DLE plant processed over
5 million litres of brine from the Kachi resource and produced over 200,000 litres of lithium chloride concentrate. A
portion of that concentrate was delivered to Saltworks in Richmond, British Columbia, Canada in 2023 for conversion
into lithium carbonate. That test program was concluded in September 2023 with over 1300 kg of >99.5% lithium
carbonate being produced, and validation data generated for the Phase One DFS. That program remains one of the
largest DLE to battery grade carbonate test programs ever conducted.
LAKE RESOURCES ANNUAL REPORT 2024
18
Lake Resources NL
Directors' report
for the year ended 30 June 2024
Operations (continued)
Overview of Operations for the Year (continued)
Kachi Lithium Brine Project - Catamarca Province, Argentina (continued)
Significant Growth in Mineral Resources
Step-out drilling from the central salar core and significantly deeper drilling and testing, to more than 600 metres
depth, led to a large increase in both the surface footprint of the mineralised area and the overall size of the lithium
resource.
Since that last reporting period, Measured and Indicated Resources have increased from 2.9 to 7.3 Mt of LCE defined
to a depth of 600 metres over 143.8 sq km. Surrounding the Measured and Indicated Resources are Inferred
Resources of 3.3 Mt LCE defined over 130.9 sq km. The updated total mineral resource estimate exceeds 10.6 Mt of
LCE (refer to ASX announcement 22 November 2023).
In addition to expanding the delineated resource to the north, south and vertically, drilling during the reporting period
intercepted some of the highest lithium concentrations drilled to-date at the project, with an average of 267 mg/L over
445m at K24D41 (refer to ASX announcement 4 October 2023) and 257 mg/L over 407 metres at K25D44 (refer to
ASX announcement 12 February 2024).
The Kachi Project has shown continual increases in mineral resource estimates since the maiden resource estimate
of 4.4 Mt of contained LCE in Inferred and Indicated categories was announced in November 2018. The resource
was significantly upgraded in January 2023, with a Measured and Indicated Resource of 2.2 Mt of LCE and
approximately 3.1 Mt of LCE as Inferred mineral resources.
The total resource was again increased in June 2023 with more than 2.9 Mt of LCE in Measured and Indicated and
approximately 5.2 Mt of LCE in the Inferred category for a total resource estimate of more than 8.1 Mt of LCE. The
most recent update in November 2023 is 7.3 Mt LCE Measured and Indicated Resource with 3.3 Mt LCE of Inferred
Resource for a total resource estimate of over 10.6 Mt LCE. This update does not include the positive results from
K25D44, which is expected to further improve the resource estimates.
Proven Successful Extraction and Injection
Lake reported on the successful extraction and injection of lithium brine for two tests completed in the summer of
2023 (refer to ASX announcement 16 August 2023) and the 2023 Annual Report (refer to ASX announcement 29
September 2023). Those tests confirmed highly favourable reservoir hydraulic properties and are indicative of
high-yield, production-scale, extraction and injection wells in the core resource area.
Since the release of the 2023 Annual Report, an additional 30-day long extraction and injection test was completed
during September and October 2023. These results, documented in the DFS (refer to ASX announcement 19
December 2023) further demonstrate the viability of the well-field development plan. The data collected during all the
extraction and injection tests were used to calibrate the hydrogeologic model used for evaluating ore reserves and
predicting changes near environmental receptors such as springs and the Carachi Pampa laguna during operations.
Maiden Ore Reserve Statement
The Ore Reserve is based on a mine plan that includes 16 production wells and 21 injection wells with average
grades and flow rates exceeding production requirements for a 25-year Life-of-Mine (“LoM”) (refer to ASX
announcement 19 December 2023). The plan uses the calibrated hydrogeologic model, developed from the field
characterisation data, to optimise the Kachi well-field layout to maximise lithium grade recovered, maximise the
Proved Ore Reserve, and minimise environmental impacts. Over 85% of the 25-year LoM production is derived from
Measured Resources, with the remaining predicted to be sourced from Indicated Resources.
19
19
Lake Resources NL
Directors' report
for the year ended 30 June 2024
Operations (continued)
Overview of Operations for the Year (continued)
Kachi Lithium Brine Project - Catamarca Province, Argentina (continued)
Maiden Ore Reserve Statement (continued)
The Proved Ore Reserve derived from Measured Resources is constrained to the first seven years of operation,
equaling 170,300 tonnes. The defined injection strategy maintains higher reservoir pressures thereby minimising
potential subsidence and environmental impacts.
Dilution in lithium grade from injection of spent brine is predicted to be minimal, with a less than 10-percent reduction
in lithium concentration in Year 25 of operations 232 mg/L, down from 257 mg/L in Years 1 through 7.
The model indicates that the well-field design can exceed processing plant design capacity, with unconstrained
potential for LCE production of 834,000 tonnes LCE relative to the reserves 624,400 tonnes LCE. Plant design
capacity is the constraint for LCE production. The 834,000 tonnes LCE represents less than 8% of the 10.6 Mt LCE
total Mineral Resource Estimate, indicative of significant potential for plant expansion.
Kachi Project Definitive Feasibility Study (DFS)
In accordance with Lake’s operational timeline, the Company announced the results of the DFS for Phase One of the
Kachi lithium brine project in December 2023. The Phase One DFS demonstrates that the Kachi Project is a tier one
project with strong economics and a significant resource, positioning it competitively within the growing lithium
market. The financial highlights include a post-tax NPV of US$2.3 billion and an IRR of 21%. Additional project
highlights include a globally significant resource of an estimated 10.6 Mt LCE, target production of >99.5% battery
grade lithium carbonate, a 25-year mine life supported by maiden Ore Reserve statement at the Phase One
production target of 25,000 ktpa over the LoM.
Environmental Impact Study for Phase One Operations
In accordance with Lake’s operational timeline, Lake submitted the Production EIA for Kachi Phase One to the
Catamarca Ministry of Mining in the Province of Catamarca, Argentina in March 2024. This EIA was based on the
production scenario presented in the DFS. This critical milestone was the culmination of extensive fieldwork and
community engagement completed over the previous three years. The Kachi lithium brine project development plan is
designed to minimize the consumption of fresh water, protect environmentally sensitive areas, and benefit local
communities.
Highlights include the Lilac technology which requires a fraction of the water required for evaporation pond and
adsorption DLE process technologies. In addition, Lake has also incorporated a Zero Liquid Discharge unit that
further reduces freshwater consumption by about 75%. The injection of spent brine allows Lake to design a system
that maximizes lithium recovery while maintaining the hydrological/hydrogeological system as close to baseline
conditions as possible during operations. Other significant environmental benefits include a smaller land footprint and
lower solid waste output compared to traditional evaporation ponds and hard rock projects.
Power Solution
Lake signed a Letter of Intent in May 2024 with YPF Luz ("YPF") to negotiate the construction and delivery of power
to the Kachi project site. YPF is a leading Argentine sustainable electric power generation company and an excellent
partner to support the Kachi Project. YPF will perform the FEED for the proposed power delivery system. As of
August 2024, significant progress has been achieved on the FEED including geotechnical investigations of some key
infrastructure sites. The Environmental Impact Assessments for the Provinces of Salta and Catamarca are expected
to be submitted by Q4 2024, and the FEED Study is expected to be completed by the end of year.
LAKE RESOURCES ANNUAL REPORT 2024
20
Lake Resources NL
Directors' report
for the year ended 30 June 2024
Operations (continued)
Overview of Operations for the Year (continued)
Other exploratory project updates
While the development of Kachi is Lake’s top priority and key focus, the company is continuing its work at its four
100-percent owned projects, Olaroz, Cauchari, Ancasti and Paso de Jama. Lake continues to work with local
communities and authorities to convert tenements to concessions through the completion of environmental impact
studies for exploration, complete regular environmental monitoring at the properties and consolidate concessions into
more easily managed groups of concessions. Lake is managing an ongoing process for the potential sale of these
named non-core projects, including the assets and lithium tenements located in Jujuy and Catamarca Provinces
(refer to ASX announcement 1 July 2024).
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 team during the second half of the year, adding Don Miller as the Company’s
Chief Financial Officer (refer to ASX announcement 8 December 2023). Mr. Miller is a highly accomplished energy
financial executive bringing over 35 years of experience. He joined Lake after serving as the President and CEO of
Bristow Group Inc. (“Bristow”), a leading global provider of helicopter services to the offshore energy industry.
Importantly, he also served as Bristow’s Chief Financial Officer, leading the development of the company’s financial
strategy, overseeing all corporate finance functions, and leading international corporate M&A efforts, including
strategy, structuring, and negotiations. Earlier in his career, Mr. Miller served in financial roles of increasing
responsibility at large, international public companies.
Another appointment made during the financial year included the appointment of Lindsay Bourg as Chief Accounting
Officer (refer to ASX announcement 3 July 2023).
Matters subsequent to the end of the financial year
On 25 July 2024, the Company announced that it has utilised it’s ATM to raise $2,500,000 (inclusive of costs) by
agreeing to issue 65,000,000 fully paid ordinary shares to Acuity Capital.
On 26 July 2024, the Company announced the resignation of its non-executive directors (Mr. Atkins, Dr. Bo-Linn, and
Ms. Chapman) as additional measures to right-size and reduce expenditure level of the company.
In September 2024, the lease for office space in Texas has been sub-leased for the remainder of its term.
Subsequent to 30 June 2024, the Company implemented cost reduction initiatives to right-size its headcount and
expenditure level with a reduction of approximately 50% of global headcount, including six members of the
Company’s executive team, and decrease of general and administrative expenses (refer to ASX announcement 1
July 2024). These actions are in addition to the approximate 50% reduction in non-core operational and
administrative workforce announced in March 2024 (refer to ASX announcement 4 March 2024). These initiatives are
not expected to impact ongoing strategic priorities for Kachi.
No other matter or circumstance has arisen since 30 June 2024 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.
21
21
Lake Resources NL
Directors' report
for the year ended 30 June 2024
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, in addition 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.
Equity Market Conditions Risk
Any shares listed on a stock exchange can experience extreme price and volume fluctuations that are often unrelated
to the operating performances of such companies. The market price of our shares may fall as well as rise and may be
subject to varied and unpredictable influences on the market for equities in general. General factors that may affect
the market price of our shares include the macroeconomic conditions which are discussed further below, investor
sentiment, local and international share market conditions, changes in interest rates and the rate of inflation,
variations in commodity prices including, but not limited to, lithium prices, the global security situation and the
possibility of terrorist disturbances, changes to government regulation, policy or legislation, and changes in exchange
rates.
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.
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. Although a definitive
feasibility study on the Kachi Project has been produced, there is a risk that it will not achieve the results expected, or
that the project may not be successfully developed for commercial, financial or other reasons.
LAKE RESOURCES ANNUAL REPORT 2024
22
Lake Resources NL
Directors' report
for the year ended 30 June 2024
Material Business Risks (continued)
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, industrial relations, environment, land use,
royalties, water, native title and cultural heritage, mine safety and occupational health. Approvals, licences and
permits required to comply with such rules are subject to the discretion of the applicable government officials. No
assurance can be given that we will be successful in obtaining such authorisations or maintaining such authorisations
in full force and effect without modification or revocation.
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 or other contagion becomes 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.
Key Personnel Risk
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. This risk has been heightened due to our
recent headcount rationalisation initiatives. The number of persons skilled in the exploration and development of
mining properties is limited and competition for such persons is strong.
Litigation Risk
We are exposed to possible litigation risks including, tenure disputes, environmental claims, occupational health and
safety claims and employee claims. Further, we may be involved in disputes with other parties in the future which
may result in litigation. Any such claim or dispute if proven, may impact adversely on the consolidated entity’s
operations, reputation, financial performance and financial position. With the exception of various minor vendor
disputes and an ongoing employment dispute with our former Chief Operating Officer, Gautam Parimoo, none of
which are material to the Company, we are not currently engaged in any litigation or alleged dispute or claim.
23
23
Lake Resources NL
Directors' report
for the year ended 30 June 2024
Material Business Risks (continued)
Force Majeure Risk
Our projects may be adversely affected by risks outside our control including labour unrest, civil disorder, war,
subversive activities or sabotage, fires, floods, explosions or other catastrophes, epidemics or quarantine restrictions
now and in the future.
Resource Estimate Risk
Resource estimates are expressions of judgment 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
Ongoing geopolitical tensions, regional conflicts and labour shortages mean that appropriate goods, materials,
supplies and equipment, including drill rigs, remains in short supply. There also remains high demand for contractors
providing other services to the mining industry. 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.
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.
LAKE RESOURCES ANNUAL REPORT 2024
24
Lake Resources NL
Directors' report
for the year ended 30 June 2024
Material Business Risks (continued)
Macro-Economic Risks
Global supply chains constraints, labour unavailability and equipment shortages are material risks to our operations.
Supply chain constraints continue to be exacerbated because of various regional conflicts throughout the world.
Hyperinflationary pressures in Argentina for appropriately skilled labour and capital items are being seen across
many industries, including mining. Current domestic and international inflation is at 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.
Lithium chemicals commodity pricing is a large concern to our business. Economic viability of the Kachi Project and
the business as a whole depends in large part on stable and increased lithium chemicals commodity prices.
Continued depressed pricing environments could lead to inability of the business to proceed with final investment
decisions for the Kachi Project, inability to sell offtake at commercially-reasonable pricing levels or inability to raise
capital necessary for continued operation of the business.
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 underwent elections in 2023, resulting
in material changes to the business and financial climate of the country. While these changes have largely been
positive, resulting in improved ability to conduct our business, it is possible that the many of the proposed changes
may not be fully realised, which 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.
25
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Lake Resources NL
Directors' report
for the year ended 30 June 2024
Information on directors
Name
Mr. Stuart Crow
Title
Non-Executive Chairman, Non-Executive Director
Experience and expertise
Mr. Crow has 38 years 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 16
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) - appointed 19
August 2021
Non-Executive Director, Todd River Resources Ltd (ASX:TRT) - appointed 24
June 2014
Non-Executive Director, Pulsar Lithium (TSX.V)- appointed on 24 June 2014
Former Directorships (last 3 years)
Senior Non-Executive Director, Atlantic Lithium Limited (AIM & ASX) -
resigned 13 July 2023
Name
Mr. David Dickson
Title
Experience and expertise
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 also serves
on the Advisory Board of private equity firm, Quantum Energy Partners, a
leading global provider of private capital to the responsibly sourced energy,
energy transition and decarbonisation 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
None
Former Directorships (last 3 years)
None
LAKE RESOURCES ANNUAL REPORT 2024
26
Lake Resources NL
Directors' report
for the year ended 30 June 2024
Information on directors (continued)
Name
Dr. Robert Trzebski
Title
Non-Executive Director
Experience and expertise
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 mineral
exploration,
strategic
advisory,
project
management
and
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.
Other current Directorships
Austral Gold (ASX: AGD) - appointed 10 April 2007
Former Directorships (last 3 years)
None
Name
Dr.Cheemin Bo-Linn (resigned 25 July 2024)
Title
Non-Executive Director
Experience and expertise
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 Independent
Director
and
Chair
(of
Audit,
Compensation,
Nominations/Governance,
Sustainability, and Tech/Cybersecurity).
Her industry operational and board experience includes lithium-ion energy
storage, energy, process, technology, manufacturing, and construction.
Other current Directorships
None
Former Directorships (last 3 years)
None
27
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Lake Resources NL
Directors' report
for the year ended 30 June 2024
Information on directors (continued)
Name
Mr. Howard Atkins (resigned 25 July 2024)
Title
Non-Executive Director
Experience and expertise
Mr. Atkins brought 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) - appointed 7 December 2022
Former Directorships (last 3 years)
None
Name
Ms. Ana Gomez Chapman (resigned 25 July 2024)
Title
Non-Executive Director
Experience and expertise
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
None
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.
LAKE RESOURCES ANNUAL REPORT 2024
28
Lake Resources NL
Directors' report
for the year ended 30 June 2024
Company secretaries
Mr. Mark Anning who was appointed on 9 January 2023 is a Chartered Secretary with over 30 years’ experience in
legal and corporate practice. He specialises 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
Stock Unit
Restricted
Stock Unit
S. Crow (Non-Executive Chairman)
10,000,000
-
-
-
D. Dickson (Managing Director and Chief
Executive Officer)
155,475
4,000,000
11,688,462
21,195,454
C. Bo-Linn (Non-Executive Director)
232,500
-
-
-
H. Atkins (Non-Executive Director )
752,869
-
-
-
A. Gomez Chapman (Non-Executive Director )
238,500
-
-
-
Meetings of Directors
The number of meetings of the Consolidated entity's Board of Directors held during the year ended 30 June 2024,
and the numbers of meetings attended by each Director were:
Board Meeting
Audit & Risk
Committee
Nomination &
Governance
Committee
Compensation
Committee
Held Attended Held Attended Held Attended Held Attended
S. Crow
7
7
7
7
5
4
8
5
D. Dickson
1
7
7
7
7
5
4
8
4
R. Trzebski
2
7
7
7
7
5
5
8
8
C. Bo-Linn
3
7
7
7
7
5
5
8
8
H. Atkins
4
7
7
7
7
5
3
8
8
A. Gomez Chapman
7
7
7
7
5
5
8
5
“Held” represents the number of meetings held during the time the Director held office and was eligible to attend.
1 Managing Director and Chief Executive Officer.
2 Chair of Compensation Committee.
3 Chair of Nomination & Governance Committee.
4 Chair of Audit & Risk Committee.
29
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Lake Resources NL
Directors' report
for the year ended 30 June 2024
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 KMP covered by the Remuneration Report
2 Remuneration Governance
3 Executive Remuneration Framework
4 Non-Executive Director Remuneration
5 Statutory Remuneration Disclosures
6 Service Agreements
7 Share-Based Compensation
8 Additional Disclosures Relating to KMP
9 Related Party Transaction
KMP COVERED BY THE REMUNERATION REPORT
The Remuneration Report outlines the compensation paid to personnel who held Key Management Personnel
("KMP") positions during FY24 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: FY24 Key Management Personnel*
Name
Position
Term as KMP in FY24
NON-EXECUTIVE DIRECTORS
Stuart Crow
Chair of the Board
Full year
Dr. Robert Trzebski
Director
Full year
Dr. Cheemin Bo-Linn
Director
Full year
Howard Atkins
Director
Full year
Ana Gomez Chapman
Director
Full year
EXECUTIVE KMP
David Dickson
Managing Director & CEO
Full year
Peter Neilsen
Chief Financial Officer
Ceased on 8 December 2023
Don Miller
Chief Financial Officer
Commenced on 8 December 2023
*
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”).
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.
LAKE RESOURCES ANNUAL REPORT 2024
30
Lake Resources NL
Directors' report
for the year ended 30 June 2024
Name
2024
2023
2022
2021
2020
AUD
AUD
AUD
AUD
AUD
Losses for the year attributable
to owners of Lake Resources NL
40,107,123
54,207,712
5,606,761
3,119,375
4,760,440
Net Assets
154,573,319
176,324,488 218,832,461
46,871,271
17,049,287
Share Price at year end (cents)
3.60
30.00
79.00
33.50
9.00
Remuneration report (audited) (continued)
REMUNERATION GOVERNANCE (continued)
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 Board
recognises the need for market competitive KMP and executive remuneration strategies to remain a key
consideration of the Board and Compensation Committee when reviewing and determining compensation structures
that attract and retain exceptional talent at Lake Resources. The maximum total remuneration provided to executive
KMP are reviewed on an annual basis with reference to the market practices of relevant market competitors for the
applicable position and responsibilities. The Board continues to review market competitive total remuneration mix as
part of enhancements to the existing remuneration framework.
Link Between Remuneration and Performance
During the year, the Consolidated entity has generated losses from its principal activity of exploring and developing
its suite of lithium projects. As the Consolidated entity is growing the business in an exploratory phase, 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 2024 year-on-year, the Company’s management is actively working towards
achieving its production goals. 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.
The earnings of the Consolidated entity for the five years to 30 June 2024 and share price as at each year end are
summarised below:
31
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Lake Resources NL
Directors' report
for the year ended 30 June 2024
Remuneration report (audited) (continued)
REMUNERATION GOVERNANCE (continued)
Response to Strike on Remuneration Report
In response to the 49.40% vote against the Remuneration Report at the November 2023 Annual General Meeting of
Shareholders, the Company has continued steps to address and mitigate shareholder concerns regarding the
Remuneration Framework, which are summarised in the table below:
Feedback
Response
Quantum of pay
(Managing Director/Chief
Operating Officer)
•
The Company has sought to provide a competitive remuneration package in the context
of the alignment of operations to serve North American supply chains and to provide
stronger access to the Kachi Project operations in Argentina. Accordingly, the Board
believes that remuneration structures should align with respective US, Australia,
Argentina structures and levels. The Board 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
hurdles
•
The Company’s stock awards vest based on a mix of time, market, and performance
components, including the changes in share price and strategic and operational goals of
the Kachi Project. Stock awards are intended to align employees with the interests of
shareholders.
•
The incentive plans will continue to include 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 and 2024 calendar years are
outlined in Table 5 of the Remuneration Report.
Use of sign-on awards
•
The Board acknowledges concerns about the use of sign-on awards, 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 by executives while also serving the purpose of retaining key talent.
•
The Board considers the use of sign-on awards appropriate due to the Company’s
business being in a critical exploratory phase, with the awards ultimate value being linked
to the success of Lake's key development projects.
Remuneration 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 took effect in 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.
In the coming year, the Board will consider further enhancements to the Remuneration
Framework to better align with governance best practices and stakeholder expectations.
•
In 2023, an independent, third-party compensation consultant assisted in establishing
pay governance best practices and updating Lake's remuneration practices and policies
to better
align with market practices, stakeholder expectations
and
shareholder
outcomes.
LAKE RESOURCES ANNUAL REPORT 2024
32
Lake Resources NL
Directors' report
for the year ended 30 June 2024
Remuneration report (audited) (continued)
REMUNERATION GOVERNANCE (continued)
Response to Strike on Remuneration Report (continued)
The Board has demonstrated improvements in shareholder communication and outreach. The Board and
management team have met with hundreds of institutional and retail shareholders or shareholder representatives to
discuss key strategic, operational, remuneration and governance matters. In preparation for the 2023 and 2024
annual general meetings of shareholders, we engaged with key proxy advisors in the Australian market to discuss
remuneration matters, including remuneration strikes sustained at prior annual general meetings of shareholders, and
the actions the Company is taking to address the issues cited by proxy advisors and investors.
EXECUTIVE REMUNERATION FRAMEWORK
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 2.
Table 2: FY24 Remuneration Framework
Fixed Remuneration
Performance-based Variable Components
Fixed Annual Remuneration
("FAR")
Short-term Variable
Remuneration ("STVR")
Long-term Incentive /
Long-term Variable
Remuneration ("LTI" /
"LTVR")
Description
Base salary, post-employment
benefits, superannuation for AUS
executives and 401 (k) matching*
contributions for US executives,
and non-monetary benefits.
* 401(k) matching contributions for
US executives was suspended 1
April 2024.
Short-term incentive awards
recognise both business and
individual performance,
taking into consideration each
individual’s contributions and
behaviours over the year.
The conditional grant of
Company shares.
Purpose
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.
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 200% of the maximum
STVR based on performance.
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.
33
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Lake Resources NL
Directors' report
for the year ended 30 June 2024
Remuneration report (audited) (continued)
EXECUTIVE REMUNERATION FRAMEWORK (continued)
Remuneration Framework (continued)
Table 2: FY24 Remuneration Framework (continued)
Fixed Remuneration
Performance-based Variable Components
Fixed Annual Remuneration
("FAR")
Short-term Variable
Remuneration ("STVR")
Long-term Incentive /
Long-term Variable
Remuneration ("LTI" /
"LTVR")
Our
Approach
FAR is generally reviewed by the
Board annually and is intended to
be market competitive. The Board
believes it should be a portion of
total pay combined with short-term
variable performance remuneration
and long-term incentive
remuneration.
STVR is awarded through
cash and/or shares as
determined by the Board to
incentivise performance
toward pre-defined strategic
targets. Targets may include
operational targets, project
targets, financial targets,
safety targets, and individual
targets 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.
Depending on the specific
terms of each LTI award,
shares vest based on either
achievement of Company
share price targets or
time-based vesting.
Other benefits to KMP are aligned with the broader employee population and are designed to meet local regulations
and practices. Table 3 represents the base remuneration payable to executive KMP based on the remuneration
elements 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.
Base Remuneration Mix
Table 3: Base Remuneration Mix for Incumbent Executive KMP
CEO annual remuneration mix prior to 31 December 2023:
Fixed (50%)
US$1,000,000
STVR (25%)
US$400,000
LTI/LTVR (25%)
US$600,000
0
At Risk (50%)
CEO annual remuneration mix beginning 1 January 2024:
Fixed (25%)
US$1,000,000
STVR (25%)
US$1,000,000
LTI/LTVR (50%)
US$2,000,000
0
At Risk (75%)
LAKE RESOURCES ANNUAL REPORT 2024
34
Lake Resources NL
Directors' report
for the year ended 30 June 2024
Remuneration report (audited) (continued)
EXECUTIVE REMUNERATION FRAMEWORK (continued)
Base Remuneration Mix (continued)
Table 3: Base Remuneration Mix for Incumbent Executive KMP (continued)
CFO (Peter Neilsen) annual remuneration mix until employment ceased 8 December 2023:
Fixed (45%)
US$500,000
STVR (45%)
US$500,000
LTI/LTVR (10%)
US$100,000
0
At Risk (55%)
CFO (Don Miller) annual remuneration mix from employment commencement of 11 December 2023:
Fixed (33.3%)
US$500,000
STVR (33.3%)
US$500,000
LTI/LTVR (33.3%)
US$500,000
0
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")
In FY24, base salary (excluding statutory superannuation, fringe benefits, 401(k) matching contributions
and non-monetary benefits) for Executive KMP during FY24 were set as follows:
Table 4: Details of Base Salary
KMP
Base salary
Other notes
David Dickson
USD 1,000,000
Mr. Dickson is eligible for employer matching 401(k) contributions
of up to US$46,000 per annum. Mr. Dickson did not make 401(k)
contributions during FY24 therefore the company did not make
matching 401k contributions.
Peter Neilsen
USD 500,000
Ceased employment on 8 December 2023.
Don Miller
USD 500,000
Commenced employment on 8 December 2023. Mr. Miller is
eligible for employer matching 401(k) contributions of up to
US$46,000 per annum. Based on Mr. Miller’s 401(k) contributions
he received US$6,250 in the form of 401(k) matching
contributions from the Company.
Short-term Variable Remuneration ("STVR") Plan
In FY24, the STVR was on a performance cycle based on the calendar year. 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 or other Board discretion. The Board has approved the below
performance metrics for assessing the performance of executive KMP (CEO and CFO) during the 2024 calendar
year.
At Risk (66.6%)
35
35
Lake Resources NL
Directors' report
for the year ended 30 June 2024
Remuneration report (audited) (continued)
EXECUTIVE REMUNERATION FRAMEWORK (continued)
Short-term Variable Remuneration ("STVR") Plan (continued)
All incentive awards are subject to discretionary adjustments that are to be approved by the Board. Details of the
STVR opportunity is set for each KMP as follows:
Table 5: Details of STVR Award
KMP
Unit type
Base award
Performance Metrics (Cash
Component)
Performance metrics (Stock
component)
D. Dickson
Cash (40%)
RSUs (60%)
US$400,000
8,756,992
For the calendar year 2023
performance cycle, an STVR
award was approved by the Board
for 100% of base compensation
payout based on an evaluation of
personal and company
performance including safety, staff
recruitment, finance and operating
outcomes.
Restricted Stock Units are further
subject to shareholder approval.
P. Neilsen
Cash (100%)
US$500,000
Based on the December 2023
resignation, no STVR award was
approved as P. Neilsen was not
performing active service on the
assessment date.
N/A
D. Dickson
Cash (100%)
US$1,000,000
For the calendar year 2024
performance cycle, STVR and
LTVR awards, ranging from nil to
200%, will be approved by the
Board based on an evaluation of
personal and company
performance including safety,
financial and operating outcomes.
N/A
D. Miller
Cash (100%)
US$500,000
Long-term Variable Remuneration ("LTVR") Plan
Subject to service contracts or employment agreements, 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.
The primary purpose of granting restricted-based and performance-based stock awards is to align the interests of
management with the interests of shareholders while ensuring retention of KMP critical to the achievement of
strategic goals.
Calculation method for number of Restricted Stock Units and Performance Stock Units awarded under LTVR
Consistent with the principles of the Board’s remuneration strategy, levels and mix of restricted stock unit ("RSU")
and performance stock unit ("PSU") distribution for KMP under the Employee Award Plan was based on relevant
market practice relative to the duties and accountabilities of each individual. The calculation of the actual number of
RSUs and PSUs to be distributed to KMP was based on a % of annual salary and was consistent with market
remuneration practice.
LAKE RESOURCES ANNUAL REPORT 2024
36
Lake Resources NL
Directors' report
for the year ended 30 June 2024
Remuneration report (audited) (continued)
EXECUTIVE REMUNERATION FRAMEWORK (continued)
Long-term Variable Remuneration ("LTVR") Plan (continued)
Calculation method for number of Restricted Stock Units and Performance Stock Units awarded under LTVR
(continued)
Details of the LTVR opportunity is set for each KMP as follows:
Table 6: Details of LTVR Award
KMP
Unit type
Number of
units
Vesting terms
Weight
Grant
date
Expiry date
D. Dickson
Restricted
Stock
Units
(RSUs)
11,688,462
Subject to
shareholder
approval
September
2024
Continuous service goal:
Tranche 1:.50% vests 3 years from
the Grant Date subject to continued
employment through the vesting date.
Tranche 2:.50% vests 4 years from
the Grant Date subject to continued
employment through the vesting date.
50%
11
December
2023
11 December
2028 being 5
years from
grant date
D. Miller
Restricted
Stock
Units
(RSUs)
4,090,961
50%
D. Dickson
Performance
Stock
Units
(PSUs)
11,688,462
Subject to
shareholder
approval
September
2024
Share Price Goal determined by the
10-day Volume-weighted Average
Price (VWAP)
Tranche 1:.Share price VWAP
reaches AUD 0.33
Tranche 2:.Share price VWAP
reaches AUD 0.52
Tranche 3:.Share price VWAP
reaches AUD 0.65
Tranche 4:.Share price VWAP
reaches AUD 0.98
While the Tranche vests upon
achievement of the share price goal,
shares are restricted from being
converted to ordinary shares for three
years from the grant date.
25%
25%
25%
11
December
2023
11 December
2028 being 5
years from
grant date
D. Miller
Performance
Stock
Units
(PSUs)
3,506,538
25%
Table 7: LTVR Award expired during the year:
Performance
Shares
Max number of
ordinary
shares that
Performance
Shares can be
converted to
Performance Measure
Max
Weight
Grant
Date
Measurement
Period
Expiry
Date
P. Neilsen LTVR
Tranche 3 (Class
D)
250,714
Delivery of the Kachi project into
production with appropriate reporting
mechanisms in place
45%
22
Feb
2022
12 Jul 2021 –
12 Jul 2024
12
Sep
2024
37
37
Lake Resources NL
Directors' report
for the year ended 30 June 2024
Remuneration report (audited) (continued)
EXECUTIVE REMUNERATION FRAMEWORK (continued)
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 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 sign-on bonuses are not performance based, the intention is for KMP to hold a certain amount of Company
stock to enhance interests with shareholders. Of the current executive KMP, the following stock compensation has
been provided as sign-on awards:
Table 8: Other Remuneration Elements
KMP
Commencement
date
Type of
Grant
Number
of units
Performance
measure
Vesting
Expiry
date
D. Dickson
15 September
2022
Stock
Options
4,000,000
Continuous
service of 4
years
Each of the Options will vest in 25%
increments on the first four
anniversaries of the commencement
date, subject to employment through
to the applicable vesting date.
15
September
2027
D. Dickson
15 September
2022
Restricted
Stock
Units
(RSUs)
1,000,000
Continuous
service of 4
years
Each RSU will vest in 25%
increments on the first four
anniversaries of the Commencement
Date subject to continued
employment through the vesting
date.
N/A
D. Miller
11 December
2023
Restricted
Stock
Units
(RSUs)
584,423
Continuous
service of 4
years
Each RSU will vest in 25%
increments on the first four
anniversaries of the Offer Grant Date
(11 December 2023) subject to
continued employment through the
vesting date.
N/A
P. Neilsen
12 July 2021
Stock
Options
2,000,000
Continuous
service of 4
years
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
Commencement Date ($0.55). Mr.
Nielsen ceased his position 8
December 2023.
12 July
2024.
Forfeited
on
resignation
For details regarding the specific shareholdings and movements in the past year, please refer to pages 47 - 49 of
this report.
LAKE RESOURCES ANNUAL REPORT 2024
38
Lake Resources NL
Directors' report
for the year ended 30 June 2024
Remuneration report (audited) (continued)
EXECUTIVE REMUNERATION FRAMEWORK (continued)
Other remuneration considerations
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.
Table 9: Other Considerations
Overview
Considerations
Fringe Benefits
and Allowances
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.
Benefits
beyond
statutory
benefits
such
as
superannuation, post-retirement benefits, and annual
leave are provided within the limits of local laws and
regulations and considers market practice and are only
provided where they address business needs.
Sustainability and
Risk in Pay
While
Sustainability
and
Risk
are
not
formulaically
reflected
in
current
incentive
plans, these matters are considered by the
Board when establishing the business plan,
setting performance goals, and
assessing
corporate
and
executive
performance
for
compensation purposes.
Lake
Resources
acknowledges
the
heightened
environmental risk that the Company faces due to the
nature of its business. As a part of Lake Resources’
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.
Our view on KMP
Share Ownership
The
Board
expects
that
all
Company
directors, KMP and senior executives should
have
substantial
ownership
of
Company
stock.
The
Board
has
approved
stock
ownership guidelines (minimum shareholding
requirement) that took effect in January 2024.
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 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
Use of Discretion
and clawback
Where necessary, the Board may, in its
absolute discretion, 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
Company,
individual
business units, or individual executives.
In the event of serious misconduct or a
material
misstatement
in
the
Company’s
financial statements, the Board may in its
discretion cancel or 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.
As the Company remains in the developmental and
exploration phase, there are significant challenges setting
meaningful
quantitative
goals
for
the
purposes
of
remuneration. As such, the Board retains the ability to
apply discretion to the incentive awards when considering
the performance of the Company or individual executives
in
any
given
performance
period
to
recognise
achievements
that
are
not
necessarily
reflected
in
financial / quantitative metrics.
39
39
Lake Resources NL
Directors' report
for the year ended 30 June 2024
Remuneration report (audited) (continued)
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, the Company, and management to procure market information regarding the pay levels of Non-Executive
Directors and determine whether fees offered to Lake's Non-Executive Directors are in line with the market.
Non-Executive Directors are not provided with retirement or termination benefits other than statutory superannuation
for Australia resident directors.
FY24 Non-Executive Director Fee Pool
In its review of Non-Executive Director fees, Lake 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 AUD $2.3 million per annum.
Table 10: FY24 Board Fees (AUD’000)
Fee
Description
FY24 Fee (per
annum)
Change from FY23
Board Fees
Chair of the Board
Other Non-Executive Directors
259
153
The
Board
fee
schedule
for
Non-executive Directors was increased
beginning November 2023. No other
changes were made.
Committee Chair
Fees
Audit Committee
Compensation Committee
Nomination & Governance Committee
Finance Committee
31
23
23
23
No changes to Committee Chair fees
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 were granted an equivalent of USD
$150,000 value of RSUs, further subject to shareholder approval. This was based on the closing price of the
Company’s shares on over-the-counter (OTC) on the day prior to the grant date. The RSUs vest one-year from the
date of grant.
LAKE RESOURCES ANNUAL REPORT 2024
40
Lake Resources NL
Directors' report
for the year ended 30 June 2024
Remuneration report (audited) (continued)
NON-EXECUTIVE DIRECTOR REMUNERATION (continued)
FY24 Non-Executive Director Fee Pool (continued)
Restricted Stock Units for Non-Executive Directors (continued)
Details of RSUs vested and converted to ordinary shares can be found in the Share-Based Payments section and
Table 11 below:
Table 11: Ordinary shares issued to Non-Executive Directors in FY24
Name
Grant Date
Vesting Date
Converted to shares
Number of RSU's Allotted
C. Bo-Linn
5-Dec-22
5-Dec-23
232,500
232,500
H. Atkins
5-Dec-22
5-Dec-23
232,500
232,500
A. Gomez Chapman
1-Jan-23
1-Jan-24
238,500
238,500
STATUTORY REMUNERATION 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.
FY24 KMP Remuneration
Table 12: Statutory remuneration of KMP in FY24 (AUD)
Key Management
Personnel
Directors’
Fees
and/or
Salary
Annual
leave
Long
Service
Leave
Post-
Employment
Benefits
4
Short-term
employee
Benefits
3 Termination
payment
Share Based payments
Total
Performance
stock unit
Restricted
Stock
unit
Options
2024
Non-Executive Directors
S. Crow
231,482
-
-
-
-
-
-
-
-
231,482
R. Trzebski
164,882
-
-
-
-
-
-
-
-
164,882
C. Bo-Linn
164,890
-
-
-
-
-
-
98,586
-
263,476
H. Atkins
172,496
-
-
-
-
-
- 101,695
-
274,191
A. Gomez Chapman
164,882
-
-
-
-
-
-
96,184
-
261,066
Executive Directors
D. Dickson
1,522,997
(60,675)
-
92,807
1,071,758
-
226,203
547,297
934,759
4,335,146
Executive Management
P. Neilsen
1
383,468
17,591
(1,257)
13,699
-
158,260
-
-
-
571,761
D. Miller
2
410,378
-
-
802,643
48,059
-
67,861
96,133
- 1,425,074
Total
3,215,475
(43,084)
(1,257)
909,149
1,119,817
158,260
294,064
939,895
934,759
7,527,079
1 Mr. Peter Nielsen ceased his position as CFO on 8 December 2023.
2 Mr. Don Miller was appointed CFO on 8 December 2023.
3 “Short-term employee benefits” include bonus accruals during the financial year.
4 “Post-employment benefits” includes severance accruals during the financial year.
41
41
Lake Resources NL
Directors' report
for the year ended 30 June 2024
Remuneration report (audited) (continued)
STATUTORY REMUNERATION DISCLOSURES (continued)
FY23 KMP Remuneration
Table 13: 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
Short-term
Employment
Benefits
9
Share Based payments
Total
Performance
shares
RSU
Options
2023
Non-Executive
Directors
S. Crow
1
177,035
-
-
-
-
-
-
-
-
177,035
R. Trzebski
114,826
-
-
-
4,410
-
-
-
-
119,236
C. Bo-Linn
2
79,089
-
-
-
-
-
-
135,076
-
214,165
H. Atkins
3
82,219
-
-
-
-
-
-
137,780
-
219,999
A. Gomez
Chapman
4
69,290
-
-
-
-
-
-
94,616
-
163,906
N. Lindsay
5
12,000
-
-
-
-
-
-
-
-
12,000
A. Saenz
6
24,000
142,312
-
-
-
-
-
-
-
166,312
Executive
Directors
S. Crow
1
478,329
-
-
-
-
-
-
-
-
478,329
D. Dickson
7
1,193,458
-
59,414
-
66,311
479,292
-
381,979
1,184,388
3,364,842
N. Lindsay
5
90,716
-
-
-
8,135
-
(71,823)
-
27,028
Executive
Management
P. Neilsen
711,480
- 134,293
2,185
23,922
200,000
-
-
- 1,071,880
G. Parimoo
8
190,586
-
48,463
-
-
-
-
-
-
239,049
Total
3,223,028
142,312
242,170
2,185
102,778
679,292
(71,823)
749,451
1,184,388
6,253,781
1 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.
2 Dr. Cheemin Bo-Linn was appointed as Non-Executive Director effective as of 5 December 2022.
3 Mr. Howard Atkins was appointed as Non-Executive Director effective as of 5 December 2022.
4 Ms. Ana Gomez Chapman was appointed as Non-Executive Director effective as of 1 January 2023.
5 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.
6 Ms. Amalia Saenz ceased the position as Non-Executive Director as of 1 February 2023.
7 Mr. David Dickson assumed the position of Managing Director and Chief Executive Officer on 15 September 2022.
8 Mr. Gautam Parimoo ceased their position as COO on 9 January 2023.
9 “Other benefits” include bonus accruals and payouts during the financial year.
LAKE RESOURCES ANNUAL REPORT 2024
42
Lake Resources NL
Directors' report
for the year ended 30 June 2024
Remuneration report (audited) (continued)
STATUTORY REMUNERATION DISCLOSURES (continued)
Table 14: Percentages of Remuneration that are Performance Based
Fixed remuneration
At risk - STVR
At risk - LTVR
Non-Executive Directors
2024
2023
2024
2023
2024
2023
S. Crow
100%
100%
0%
0%
0%
0%
R. Trzebski
100%
100%
0%
0%
0%
0%
C. Bo-Linn
100%
100%
0%
0%
0%
0%
H. Atkins
100%
100%
0%
0%
0%
0%
A. Gomez Chapman
100%
100%
0%
0%
0%
0%
A. Saenz
0%
100%
0%
0%
0%
0%
Executive Directors
D. Dickson
25%
50%
25%
25%
50%
25%
Executive Management
P. Neilsen
45%
80%
45%
10%
10%
10%
D. Miller
33.3%
0%
33.3%
0%
33.3%
0%
SERVICE AGREEMENTS
Non-Executive KMP
Non-Executive Directors’ service to Lake 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 Restricted Stock Units in the Company at the time of appointment with a view to
increase alignment of interests with shareholders, further subject to shareholder approval. Please refer to the
Non-Executive Directors’ Remuneration section of this report (table 7) for details regarding the fees and other awards
payable to non-executive KMPs.
Executive KMP
Remuneration of executive key management personnel referenced within the Remuneration Report are formalised
through service or employment agreements. Key terms from the service or employment agreements as required in
the Corporations Act of personnel that held executive KMP positions during FY24 are summarised below:
43
43
Lake Resources NL
Directors' report
for the year ended 30 June 2024
Remuneration report (audited) (continued)
SERVICE AGREEMENTS (continued)
Executive KMP (continued)
Table 15: Key Service Agreement Terms
Executive KMP
Commencement date
Contract term
Executive Notice Company Notice
1
David Dickson
2
15 September 2022
4-years from date of commencement
3
30 days
30 days
Peter Neilsen
4
12 July 2021
3-years from date of commencement
3 months
3 months
Don Miller
5
8 December 2023
Until terminated
0 days
0 days
1 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.
2 Mr. Dickson’s service agreement provides that, in the case of termination without cause or following resignation for good reason
outside of a Change in Control, subject to him signing a release of claims provided by Company, 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 to the extent such Annual Bonus is earned as set forth in the performance metrics, agreed to by the Board,
and was not paid prior to such termination, in a lump sum payable at the time that annual bonuses for such calendar year are paid
to actively employed Executives; and an amount in cash equal to eighteen (18) months base salary payable in equal instalments
in accordance with the Company’s standard payroll practices over an 18-month period.
In the case of termination without cause or resignation for good reason (in either case, other than a termination due to the
executives death or disability) during the employment term during the Change in Control Protection Period subject to him signing a
release of claims provided by Company, 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 to the extent such
Annual Bonus is earned as set forth in the performance metrics, agreed to by the Board, and was not paid prior to such
termination in a lump sum payable at the time that annual bonuses for such calendar year are paid to actively employed
executives; a cash lump sum payment equal to two and one-half times (2.5X) the executives annual base salary; and the full
vesting of all outstanding Options, PSU's and RSU's. 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.
3 The initial term of Mr. Dickson’s contract is four years, however beginning on the four-year anniversary of the commencement
date, and on each subsequent anniversary of the commencement date, the term shall automatically be extended by an additional
one-year period, unless the Company or Mr. Dickson provides no less than sixty days’ notice in advance of the termination in
contract date.
4 Mr. Nielsen ceased his position as CFO on 8 December 2023
5 Mr. Don Miller commenced his position as CFO on 8 December 2023. Mr. Miller’s service agreement provides that if the Company
terminates his employment without Cause, subject to him signing a release of claims provided by Company, he will continue to
receive one (1) times his annual base salary, payable over 12 months pursuant to the Company’s standard payroll procedures.
KMP have no entitlement to termination benefit payments in the event of removal for misconduct.
LAKE RESOURCES ANNUAL REPORT 2024
44
Lake Resources NL
Directors' report
for the year ended 30 June 2024
Remuneration report (audited) (continued)
SERVICE AGREEMENTS (continued)
Executive KMP (continued)
Service agreements for incumbent executive KMP
Name
D. Dickson
Position
Managing Director/Chief Executive Officer
Agreement commenced 15 September 2022
Terms of agreement
Term: 4 years from date of appointment
Base Salary: As compensation for Mr. Dickson’s services and in consideration of the
Executive’s employment agreement, during the Employment Term, the Company shall pay
the Executive a base salary, payable in equal instalments in accordance with Company
payroll procedures, an annual rate of US$1,000,000. The Executive’s annual base salary is
subject to possible increase in its sole discretion as approved by the Board, from time to
time.
Sign-on bonus: Effective on the Commencement Date, the Executive shall be granted
1,000,000 restricted stock units (“RSUs”) and 4,000,000 stock options (“Options”) with
respect to the common shares of Lake Resources. Each of the RSUs and the Options shall
vest in 25% increments on each of the first four anniversaries of the Commencement Date,
subject to the Executive’s employment through the applicable vesting date.
STVR (Short-term variable remuneration): Through the calendar year ending 31
December 2023, the annual incentive for STVR under the Executive's employment
agreement was 40% of US$1,000,000 payable in cash and 60% in a long-term incentive
opportunity explained in the LTVR section of this table. Through the calendar year ending 31
December 2024, the annual incentive for STVR was adjusted to a base of US$1,000,000
payable in cash.
LTVR (Long-term variable remuneration): Through the calendar year ending 31 December
2023, the annual incentive for LTVR under the Executive's employment agreement was 60%
of US$1,000,000 incentive consisting of restricted stock units that will vest in equal
instalments over three (3) years and 40% in an annual STVR opportunity as explained in the
STVR section of this table. Through the calendar year ending 31 December 2024, the annual
incentive for LTVR was adjusted to US$2,000,000, payment in RSUs or PSUs.
Termination: Table 15 Key Service Agreement Terms on page 44.
45
45
Lake Resources NL
Directors' report
for the year ended 30 June 2024
Remuneration report (audited) (continued)
SERVICE AGREEMENTS (continued)
Executive KMP (continued)
Service agreements for incumbent executive KMP (continued)
Name
Don Miller
Position
Chief Financial Officer
Agreement commenced 8 December 2023 (commenced as KMP on 8 December 2023)
Terms of agreement
Term: Until terminated
Base Salary: As compensation for Mr. Miller’s services and in consideration of the
Executive’s employment agreement, during the Employment Term, the Company shall pay
the Executive a base salary, payable in equal instalments in accordance with Company
payroll procedures, an annual rate of US$500,000. The Executive’s annual base salary is
subject to possible increase in its sole discretion as approved by the Board, from time to time.
Sign-on Bonus: Granted US$50,000 in the form of RSUs. The grant was awarded using the
share price listed on the Australian Securities Exchange the day prior to the Commencement
Date which in this case will be December 8, 2023. Each of the RSUs shall vest in 25%
increments on each of the first four anniversaries of the Commencement Date, subject to the
Executives employment through the applicable vesting date.
STVR (Short-term variable remuneration): The target STVR for the Executive is 100% of
base pay. STVR payments made for the calendar year 2023 performance year was pro-rated
based on the Executive's Commencement Date.
LTVR (Long-term variable remuneration): The Executive's LTVR incentives will follow the
same award cycle as the Executive team. The value and long-term incentive mix will be
determined and in line with Executive team participants. Incentives are subject to the terms of
the Lake Resources Long-term Incentive program and the Executive's execution of grant
agreements for each long-term incentive provided by the Company.
Termination: Refer to table 15 on page 44.
LAKE RESOURCES ANNUAL REPORT 2024
46
Lake Resources NL
Directors' report
for the year ended 30 June 2024
Remuneration report (audited) (continued)
SHARE-BASED COMPENSATION
The establishment of the Employee Award Plan 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.
Terms and Conditions of the Share-Based Payment Arrangements
Options
6,000,000 options over ordinary shares have historically been issued to key management personnel. The terms and
conditions of each grant of options over ordinary shares affecting remuneration executives in this financial year or
future reporting years are as follows:
Name
Number of
Options
granted
Grant date
Vesting and
exercise date
Expiry date
Exercise
price
Fair value
at grant
date
% vested
P. Neilsen
2,000,000
12-July-2021
12-July-2021
12-July-2024
$0.55
$0.231
100%
D. Dickson
4,000,000
15-Sep-2022
15-Sep-2023
15-Sep-2027
$1.00
$1.095
25%
Total
6,000,000
The options will be recognised over the relevant vesting period for all KMP. Of the options granted, none have been
exercised and 2,000,000 have expired in July 2024.
Performance Rights
On 15 August 2019, 15,000,000 Performance rights were issued to Directors following approval at the shareholder
meeting of 15 August 2019. The historical activity regarding these performance rights are shown below:
Name
Number of
Rights
granted
Grant date Expiry date
Fair value
at grant
date
Vested and
exercised in
a prior year
Forfeited in
prior year
Vested and
exercised
during the
year
Unvested
as at 30
June 2024
S. Crow
5,000,000
15-Aug-19
15-Aug-24
$0.0575
-
-
-
5,000,000
S. Promnitz 5,000,000
15-Aug-19
15-Aug-24
$0.0575
2,500,000
2,500,000
-
-
N. Lindsay
5,000,000
15-Aug-19
15-Aug-24
$0.0575
2,500,000
-
2,500,000
-
Total
15,000,000
5,000,000
2,500,000
2,500,000
5,000,000
These performance rights expired in August 2024.
47
47
Lake Resources NL
Directors' report
for the year ended 30 June 2024
Remuneration report (audited) (continued)
SHARE-BASED COMPENSATION (continued)
Terms and Conditions of the Share-Based Payment Arrangements (continued)
Performance Rights (continued)
Performance rights outcomes are as follows:
The Kachi Pre-Feasibility Study ("PFS") completion resulted in 2.5 million for Dr. Lindsay and 2.5 million for
S. Promnitz vesting in the 2021 fiscal year, which were converted into ordinary shares in 2022.
An additional 2.5 million in performance rights granted to Dr. Lindsay, vested on 31 April 2022 and were converted
to ordinary shares 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.
As at 30 June 2024 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)
Total
performance
shares at 30
June 2024
Forfeit
2024
123,809 22-Feb-2022 12-Dec-2022
-
123,809
$0.9000
-
-
P. Neilsen
139,285 22-Feb-2022 12-Mar-2023
-
139,285
$0.9000
-
-
167,142 22-Feb-2022 12-Sep-2023
-
167,142
$0.9000
-
-
250,714 22-Feb-2022 12-Sep-2024
-
-
$0.9000
-
250,714
Total
680,950
-
430,236
-
250,714
These performance shares as at 30 June 2024 are summarised below and in Table 6 were forfeited on resignation:
Name
Number of
Performance
shares
granted
Performance measure
Measurement
date
Directors judgement at 30 June
2024
P. Neilsen
(Former
Chief
Financial
officer
167,142
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.
12-Jul-23
This tranche was forfeited during
the year. Nil expense recorded.
250,714 Delivery of the Kachi Project into production with
appropriate reporting mechanisms in place.
12-Jul-24
This tranche was forfeited during
the year. Nil expense recorded. Nil
expenses recorded in prior year.
LAKE RESOURCES ANNUAL REPORT 2024
48
Lake Resources NL
Directors' report
for the year ended 30 June 2024
Remuneration report (audited) (continued)
SHARE-BASED COMPENSATION (continued)
Terms and Conditions of the Share-Based Payment Arrangements (continued)
Performance Stock Units
PSUs granted under the plan are for no consideration and carry no dividend or voting rights.
PSU terms and conditions of the share-based payment arrangements on issue as of 30 June 2024 affecting
remuneration of Directors and other KMP in this financial period or reporting period are as follows and disclosed in
table 6:
Name
Number of
performance
stocks
granted
Grant date
Expiry date
Converted
to Shares
Expired
Fair value
at grant
date
(AUD)
2,922,116
11-Dec-2023
11-Dec-2028
-
-
$0.1230
D. Dickson
2,922,116
11-Dec-2023
11-Dec-2028
-
-
$0.1140
2,922,116
11-Dec-2023
11-Dec-2028
-
-
$0.1120
2,922,116
11-Dec-2023
11-Dec-2028
-
-
$0.0990
876,635
11-Dec-2023
11-Dec-2028
-
-
$0.1230
D. Miller
876,635
11-Dec-2023
11-Dec-2028
-
-
$0.1140
876,635
11-Dec-2023
11-Dec-2028
-
-
$0.1120
876,635
11-Dec-2023
11-Dec-2028
-
-
$0.0990
Total
15,195,004
-
-
Restricted Stock Unit
RSUs granted under the plan are for no consideration and carry no dividend or voting rights.
RSU terms and conditions of the share-based payment arrangements on issue as of 30 June 2024 affecting
remuneration of Directors and other KMP in this financial period or reporting period are as follows and disclosed in
table 6:
Name
Grant date
Vesting date
Number of units
allotted
Fair value
price
11-Dec-26
5,844,231
$0.130
David Dickson
11-Dec-23
11-Dec-27
5,844,231
$0.130
Don Miller
11-Dec-24
146,106
$0.130
11-Dec-23
11-Dec-25
146,106
$0.130
Don Miller
11-Dec-26
1,899,375
$0.130
11-Dec-23
11-Dec-27
1,899,375
$0.130
Where a change in control occurs while still employed by the company, any then un-vested RSU’s shall immediately
vest. Settlement of a Share may be settled in the form of a Share or cash at the sole discretion of the Board.
49
49
Lake Resources NL
Directors' report
for the year ended 30 June 2024
Remuneration report (audited) (continued)
ADDITIONAL DISCLOSURES RELATING TO KMP
2024 Ordinary Share Holdings
Movements in the number of ordinary shares in the Consolidated entity held during the financial year by each Director
and other KMPs, including their personally related parties, are set out below:
Name
Balance at
the start of
the year
Received as
part of
remuneration
Additions
Conversion of
RSU's to
Ordinary shares
Disposal/
Other*
Balance at
the end of
the year
S. Crow
10,000,000
-
-
-
-
10,000,000
D. Dickson
-
155,475
-
155,475
H. Atkins
-
-
520,369
232,500
-
752,869
A. Gomez Chapman
-
-
-
238,500
-
238,500
C. Bo-Linn
-
-
-
232,500
-
232,500
P. Neilsen
37,850
-
-
-
(37,850)
-
Total
10,037,850
-
520,369
858,975
(37,850)
11,379,344
* "Other" represents those held on resignation
Options
Movements in the number of options over ordinary shares in the Consolidated entity held during the financial year by
each Director and KMP of the Consolidated entity, including their personally related parties, are set out below:
Name
Balance at the
start of the year
Granted as
remuneration
Exercised
Listed options
received
Other*
Balance at the
end of the year
D. Dickson
4,000,000
-
-
-
-
4,000,000
P. Neilsen
2,000,000
-
-
-
(2,000,000)
-
Total
6,000,000
-
-
-
(2,000,000)
4,000,000
* "Other" represents those held on resignation
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 KMP of the Consolidated entity, including their personally related parties, are set
out below:
Name
Balance at the start of
the year
Granted as
remuneration
Converted to
shares
Expired
Balance at the end of
the year
S. Crow
5,000,000
-
-
-
5,000,000
Total
5,000,000
-
-
-
5,000,000
LAKE RESOURCES ANNUAL REPORT 2024
50
Lake Resources NL
Directors' report
for the year ended 30 June 2024
Remuneration report (audited) (continued)
ADDITIONAL DISCLOSURES RELATING TO KMP (continued)
Performance Stock Units
Movements in the number of performance stock units over ordinary shares in the Consolidated entity held during the
financial year by each Director and KMP of the Consolidated entity, including their personally related parties, are set
out below:
Name
Balance at the start of
the year
Granted as
remuneration
Converted to
shares
Expired
Balance at the end of
the year
D. Dickson
-
11,688,462
-
-
11,688,462
D. Miller
-
3,506,538
-
-
3,506,538
Total
-
15,195,000
-
-
15,195,000
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 KMP of the Consolidated entity, including their personally
related parties, are set out below:
Name
Balance at the start of
the year
Granted as
remuneration
Expired
Forfeited
Balance at the end of
the year
P. Neilsen
417,856
-
(167,142)
(250,714)
-
Total
417,856
-
(167,142)
(250,714)
-
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 KMP of the Consolidated entity, including their personally related parties, are set
out below:
Name
Balance at start of
the year
Granted as
remuneration
Converted to
shares
Expired
Balance at end of
the year
D. Dickson
1,000,000
11,688,462
(250,000)
-
12,438,462
H. Atkins
232,500
-
(232,500)
-
-
C. Bo-Linn
232,500
-
(232,500)
-
-
A. Gomez Chapman
238,500
-
(238,500)
-
-
D. Miller
-
4,090,961
-
-
4,090,961
Total
1,703,500
15,779,423
(953,500)
-
16,529,423
51
51
Lake Resources NL
Directors' report
for the year ended 30 June 2024
Remuneration report (audited) (continued)
RELATED PARTY TRANSACTIONS
The following transactions occurred with related parties:
2024
$
2023
$
Payment for services
Consultancy services provided by an entity associated with Amalia Saenz
(Director resigned 1 Feb 2023)
-
142,312
Receivable from and (payable to) related parties
Net advances to Mr Stephen Promnitz
-
200,000
During the year, outstanding balance was cash settled during the year
End of Audited Remuneration Report
Shares under option
Unlisted securities
Unlisted securities of Lake Resources NL under option at the date of this report are as follows:
Grant Date
Expiry date
Exercise price
Number under option
19-Jan-22
19-Jan-25
$1.48
1,000,000
14-Oct-21
25-Oct-24
$0.57
2,000,000
26-Apr-22
26-Apr-25
$1.42
1,036,122
26-Apr-22
26-Apr-25
$1.42
1,036,122
26-Aug-22
26-Aug-25
$1.50
1,000,000
12-Sep-22
15-Jun-25
$0.75
5,550,000
10-Oct-22
15-Sep-25
$1.13
4,000,000
24-Oct-22
24-Oct-25
$1.00
1,500,000
24-Oct-22
24-Oct-24
$1.00
1,500,000
20-Jul-22 - 20-Jun-23
20-Jan-25 - 20-Jun-28
$0.30 - $1.50
6,106,189
Total
24,728,433
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, no ordinary shares of the Consolidated entity were issued as a result of
the exercise of options.
LAKE RESOURCES ANNUAL REPORT 2024
52
Lake Resources NL
Directors' report
for the year ended 30 June 2024
Performance Rights
At the date of this report there were 5,000,000 unlisted securities of the Consolidated entity under performance rights.
During the financial year ended 30 June 2024, no performance rights have expired in relation to Directors.
No performance rights have been issued or converted to shares since 30 June 2024. All Performance
Rights expired on 15 August 2024. Information on the issue of performance rights to Directors is provided
in the Remuneration Report.
Performance Stock Units
At the date of this report there were 19,760,625 unlisted securities of the Consolidated entity under performance
stocks. During the financial year ended 30 June 2024, no performance stocks have expired in relation to Directors.
No performance stocks have been issued or converted to shares since 30 June 2024. Information on the issue of
performance stocks to Directors is provided in the Remuneration Report.
Performance Shares
At the date of this report there were nil unlisted securities of the Consolidated entity under performance shares.
During the financial year ended 30 June 2024, 417,856 performance shares have expired in relation to Directors. No
performance shares have been issued since 30 June 2024. Information on the issue of performance shares to
Directors is provided in the Remuneration Report.
Restricted Stock Units
At the date of this report there were 21,321,671 unlisted securities of the Consolidated entity under restricted stock
unit. During the financial year ended 30 June 2024, no restricted stocks have expired in relation to Directors. No
restricted stock have been issued since 30 June 2024. Information on the issue of restricted stock to Directors is
provided in the Remuneration Report and 953,500 was converted to ordinary shares during the year.
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
Officers 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.
53
53
Lake Resources NL
Directors' report
for the year ended 30 June 2024
Non-audit services
BDO provided non-audit services of $166,974 during the financial year ended 30 June 2024. 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.
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 55.
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 Director's report. Amounts in the Director's 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
25 September 2024
LAKE RESOURCES ANNUAL REPORT 2024
54
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.
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
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 2024, I declare that, to the best of
my knowledge and belief, there have been:
1.
No contraventions of the auditor independence requirements of the Corporations Act 2001 in
relation to the audit; and
2.
No contraventions of any applicable code of professional conduct in relation to the audit.
This declaration is in respect of Lake Resources NL and the entities it controlled during the year.
R M Swaby
Director
BDO Audit Pty Ltd
Brisbane, 25 Septemeber 2024
LAKE RESOURCES ANNUAL REPORT 2024
55
Lake Resources NL
Consolidated statement of profit or loss and other comprehensive income
for the year ended 30 June 2024
Note
2024
$
2023
$
Other Income
Gain on Electronic Payment Market (MEP Dollar)
5(g)
21,720,572
43,696,631
Interest income
1,497,028
2,890,335
Rental and Sub-lease rental income
122,890
-
Expenses
Administrative expenses
5(a)
(2,922,575)
(2,973,268)
Consultancy and legal costs
5(e)
(10,174,557)
(15,404,527)
Corporate expenses
5(b)
(7,765,225)
(9,445,706)
Employee benefits expense
5(c)
(23,243,713)
(13,977,944)
Depreciation and amortisation expense
(700,923)
(207,433)
Share-based payments expense
5(d)
(6,899,930)
(13,018,995)
Foreign exchange losses
4
(22,492,860)
(25,577,700)
Impairment of assets
-
(1,929,446)
Loss on remeasurement of VAT receivable
8(b)
(2,998,623)
(10,661,443)
Finance costs, net
5(f)
(148,670)
(196,908)
Loss before income tax expense
(54,006,586)
(46,806,404)
Income tax expense
6
(16,010)
(446,639)
Loss after income tax expense for the year
(54,022,596)
(47,253,043)
Other comprehensive income/(loss) for the year, net of tax
Items that may be reclassified to profit or loss
Exchange differences on translation of foreign operations
17(g)
10,260,372
(10,343,798)
Total other comprehensive income/(loss) for the year
10,260,372
(10,343,798)
Profit/(Loss) after income tax expense for the year attributable to:
Owners of Lake Resources NL
(52,455,552)
(45,754,115)
Non-controlling interests
27
(1,567,044)
(1,498,928)
(54,022,596)
(47,253,043)
Total comprehensive (loss)/ income for the period is attributable to:
Owners of Lake Resources NL
(40,107,123)
(54,207,712)
Non-controlling interests
27
(3,655,101)
(3,389,129)
(43,762,224)
(57,596,841)
Cents
Cents
Basic loss per share
18
(3.52)
(3.26)
Diluted loss per share
18
(3.52)
(3.26)
The above consolidated statement of profit or loss and other comprehensive income should be read in conjunction
with the accompanying notes.
LAKE RESOURCES ANNUAL REPORT 2024
56
Lake Resources NL
Consolidated statement of Financial Position
as at 30 June 2024
Note
30 June
2024
$
30 June
2023
$
Assets
Current assets
Cash and cash equivalents
7
22,902,013
89,217,466
Trade and other receivables
8
1,882,128
1,935,223
Other current assets
9
776,815
1,420,335
Total current assets
25,560,956
92,573,024
Non-current assets
Property, plant and equipment
12
3,556,977
1,541,620
Right-of-use assets
11
1,212,662
80,806
Other financial assets
8(b)
1,706,598
1,046,001
Exploration and evaluation
10
145,597,788
98,175,863
Total non-current assets
152,074,025
100,844,290
Total assets
177,634,981
193,417,314
Liabilities
Current liabilities
Trade and other payables
13
3,450,841
11,247,825
Lease liabilities
11
904,345
348,354
Employee benefits
14
14,494,480
4,170,663
Total current liabilities
18,849,666
15,766,842
Non-current liabilities
Lease liabilities
11
1,475,187
1,324,490
Employee benefits
14
828
1,494
Provision for rehabilitation and restoration
15
2,735,981
-
Total non-current liabilities
4,211,996
1,325,984
Total liabilities
23,061,662
17,092,826
Net assets
154,573,319
176,324,488
Equity
Issued capital
16(a)
243,371,941
229,703,796
Reserves
17(g)
23,216,316
6,513,767
Accumulated losses
(113,434,842)
(64,968,080)
Total equity attributable to owners of the parent
153,153,415
171,249,483
Non-controlling interests
27
1,419,904
5,075,005
Total equity
154,573,319
176,324,488
The above Consolidated statement of Financial Position should be read in conjunction with the accompanying notes.
57
57
Lake Resources NL
Consolidated statement of changes in equity
for the year ended 30 June 2024
Attributable to owners of Lake Resources NL
Note
Issued capital
$
Reserves
$
Accumulated
Losses
$
Total equity
attributable
to owners of
the parent
$
Non-
controlling
interests
$
Total
equity
$
Balance at 1 July 2022
231,179,318
9,508,419
(21,855,276)
218,832,461
-
218,832,461
Loss for the year
-
-
(45,754,115)
(45,754,115) (1,498,928)
(47,253,043)
Other comprehensive
income
-
(8,453,597)
-
(8,453,597) (1,890,201)
(10,343,798)
Total comprehensive
income for the year
-
(8,453,597)
(45,754,115)
(54,207,712) (3,389,129)
(57,596,841)
Transactions with
owners in their
capacity as owners:
Contributions of equity,
net of transaction costs
16(a)
2,348,232
-
-
2,348,232
-
2,348,232
Share issue costs
16(a)
(3,823,754)
-
-
(3,823,754)
-
(3,823,754)
Issue of unlisted options
to brokers
16
-
3,489,695
-
3,489,695
-
3,489,695
Transfer from equity
instrument reserve to
accumulated losses on
equity instruments
expired/exercised
-
(2,641,311)
2,641,311
-
-
-
Transactions with
non-controlling interests
-
(8,464,134)
-
(8,464,134)
8,464,134
-
Issue of unlisted options
to brokers and KMPs
and other employees
-
11,959,835
-
11,959,835
-
11,959,835
Issue of restricted stock
units to employees
-
1,172,327
-
1,172,327
-
1,172,327
Unwinding of
performance rights to
Directors
-
(57,467)
-
(57,467)
-
(57,467)
(1,475,522)
5,458,945
2,641,311
6,624,734
8,464,134
15,088,868
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.
LAKE RESOURCES ANNUAL REPORT 2024
58
Lake Resources NL
Consolidated statement of changes in equity
for the year ended 30 June 2024
Attributable to owners of Lake Resources NL
Note
Issued capital
$
Reserves
$
Accumulated
Losses
$
Total equity
attributable
to owners
of the
parent
$
Non-
controlling
interests
$
Total
equity
$
Balance at 1 July 2023
229,703,796
6,513,767
(64,968,080)171,249,483
5,075,005
176,324,488
Loss for the year
-
-
(52,455,552) (52,455,552) (1,567,044)
(54,022,596)
Other comprehensive
income
-
12,348,429
-
12,348,429
(2,088,057)
10,260,372
Total comprehensive
income for the year
-
12,348,429
(52,455,552) (40,107,123) (3,655,101)
(43,762,224)
Transactions with
owners in their capacity
as owners:
Contributed equity
16(b)
16,461,241
-
-
16,461,241
-
16,461,241
Share issue costs
16(b)
(2,793,096)
-
-
(2,793,096)
-
(2,793,096)
Issue of unlisted options
to employee
-
3,508,866
-
3,508,866
-
3,508,866
Transfer from equity
instrument reserve to
accumulated losses on
equity instruments
expired/exercised
-
(3,988,790)
3,988,790
-
-
-
Share based payment
expenses - RSU
-
3,249,925
-
3,249,925
-
3,249,925
Share base payment
expenses - PSU
-
1,584,119
-
1,584,119
-
1,584,119
13,668,145
4,354,120
3,988,790
22,011,055
-
22,011,055
Balance at 30 June 2024
243,371,941
23,216,316
(113,434,842)153,153,415
1,419,904
154,573,319
The above consolidated statement of changes in equity should be read in conjunction with the accompanying notes.
59
59
Lake Resources NL
Consolidated statement of cash flows
for the year ended 30 June 2024
Note
2024
$
2023
$
Cash flows from operating activities
Payments to suppliers (Inclusive of GST)
(41,252,661)
(29,981,156)
Interest received
1,497,028
2,890,335
Interest paid
(148,670)
(196,908)
Income taxes paid
(16,010)
(446,639)
Rental income
122,889
-
Net cash (outflow) from operating activities
30
(39,797,424)
(27,734,368)
Cash flows from investing activities
Payments for property, plant and equipment
(739,824)
(1,236,656)
Payments for exploration and evaluation
10
(39,179,276)
(66,522,685)
Net or gross receipt from Electronic Payment Market (MEP) transactions
21,720,572
43,696,631
Proceeds from related party loans
200,000
-
Net cash (outflow) from investing activities
(17,998,528)
(24,062,710)
Cash flows from financing activities
Proceeds from issue of shares, net of transaction costs
16(b)
16,461,240
2,014,175
Share issue cost
16(b)
(1,569,932)
-
Principal payments of lease liabilities
(860,393)
(244,767)
Net cash inflow from financing activities
14,030,915
1,769,408
Net (decrease) in cash and cash equivalents
(43,765,037)
(50,027,670)
Cash and cash equivalents at the beginning of the financial year
89,217,466
175,444,065
Effects of exchange rate changes on cash and cash equivalents
(22,550,416)
(36,198,929)
Cash and cash equivalents at end of year
7
22,902,013
89,217,466
LAKE RESOURCES ANNUAL REPORT 2024
60
Lake Resources NL
Notes to the consolidated financial statements
30 June 2024
1
Significant accounting policies
The principal accounting policies adopted in the preparation of the financial statements are set out below. These
policies have been consistently applied to all the years presented, unless otherwise stated.
(a) Basis of preparation
These general purpose consolidated financial statements have been prepared in accordance with Australian
Accounting Standards and Interpretations issued by the Australian Accounting Standards Board and the Corporations
Act 2001. Lake is a for-profit entity for the purpose of preparing the consolidated financial statements.
(i)
Compliance with IFRS
The consolidated financial statements of the 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) 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
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.
Certain new accounting amendments to accounting standards and interpretations have been published that are not
mandatory for 30 June 2024 reporting years and have not been early adopted by the Consolidated entity. 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.
(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 $54,022,596 and net cash outflows from operating and
investing activities of $57,795,952 for the year ended 30 June 2024. At 30 June 2024, the Company had net
current assets of $6,711,290.
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 $22,902,013 at 30 June 2024;
•
The Consolidated entity has no loans or borrowings;
•
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;
61
61
Lake Resources NL
Notes to the consolidated financial statements
30 June 2024
1
Significant accounting policies (continued)
(c) Going concern (continued)
•
Lake has implemented further cost saving measures all through the year reducing global headcount by
approximately 70% across its non-core operational and administrative workforce and additional streamlining
of general and administrative expenditures; and there are various cost cutting measures still being explored;
and
•
The Consolidated entity is in the process of exploring the sale of non-core assets to provide additional
liquidity.
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 2024 annual financial report.
The ability of the Consolidated entity to continue as a going concern is principally dependent upon the ability of the
Consolidated entity to secure funds by raising additional capital and managing cashflow in line with available funds.
These conditions indicate a material uncertainty that may cast significant doubt about the ability of the Consolidated
entity to continue as a going concern. In the event the above matters are not achieved, the Consolidated entity will be
required to raise funds for working capital from debt or other equity sources.
The Directors expect that the current funds would be sufficient to meet operational expenditure requirements,
including minimum exploration commitments across its tenements portfolio.
As announced on 29 November 2023, Lake and Lilac engaged Goldman Sachs as financial adviser to explore a
strategic partnership for the Kachi project. Discussions with potential partners remain ongoing and if successful, may
provide additional capital to fund activities prior to FID and ultimately project development. In addition, Lake is also
considering all other financing alternatives, consistent with its capital management policies, which may include future
equity offerings as required to fund costs whilst strategic discussions remain ongoing.
The Consolidated entity has utilised an At-the-market subscription agreement (“ATM”) with Acuity Capital in which
65,000,000 ordinary shares were issued and proceeds of $2,500,000 were received on 25 July 2024.
Should the Consolidated entity be unable to continue as a going concern, it may be required to realise its assets and
extinguish its liabilities other than in the ordinary course of business, and at amounts that differ from those stated in
the financial report. This financial report does not include any adjustments relating to the recoverability and
classification of recorded asset amounts or the amounts or classification of liabilities and appropriate disclosures that
may be necessary should the Consolidated entity be unable to continue as a going concern.
(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 26.
LAKE RESOURCES ANNUAL REPORT 2024
62
Lake Resources NL
Notes to the consolidated financial statements
30 June 2024
1
Significant accounting policies (continued)
(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 28.
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.
Intercompany transactions, balances and unrealised gains on transactions between subsidiaries of the Consolidated
entity 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 NL (the parent
and reporting entity).
63
63
Lake Resources NL
Notes to the consolidated financial statements
30 June 2024
1
Significant accounting policies (continued)
(g) Foreign currency translation (continued)
(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.
(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 and all resulting foreign exchange differences are recognised in other
comprehensive income through the foreign currency reserve in equity. Also, 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.
(h) MEP contract settlement – Argentina cash calls: USD conversion to ARS
(i)
Overview
USD cash calls are transferred from Lake Resources NL 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 Peso. To maximise the value of local purchasing power in a hyperinflationary economy, the USD is regularly
converted to ARS Peso 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 and reporting purposes. The
MEP Dollar are financial instruments in line with AASB 9 (the sale of the bonds) characterised 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.
LAKE RESOURCES ANNUAL REPORT 2024
64
Lake Resources NL
Notes to the consolidated financial statements
30 June 2024
1
Significant accounting policies (continued)
(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.
(i)
Financial assets at amortised cost
Financial assets at amortised cost are held for collection of contractual cash flows where those cash flows represent
solely payments of principal and interest. They are carried at amortised cost using the effective interest rate method.
Gains and losses are recognised in profit or loss when the asset is derecognised or impaired.
(ii) Financial assets at fair value through profit or loss
Financial assets not measured at amortised cost or at fair value through other comprehensive income are classified
as financial assets at fair value through profit or loss. Typically, such financial assets will be either: (i) held for trading,
where they are acquired for the purpose of selling in the short-term with an intention of making a profit, or a
derivative; or (ii) designated as such upon initial recognition where permitted. Fair value movements are recognised
in profit or loss.
(iii) Financial assets at fair value through comprehensive income
Financial assets at fair value through other comprehensive income include equity investments which the
Consolidated entity intends to hold for the foreseeable future and has irrevocably elected to classify them as such
upon initial recognition.
(iv) Impairment of financial assets
The Consolidated entity recognises a loss allowance for expected credit losses on financial assets which are either
measured at amortised cost or fair value through other comprehensive income. The measurement of the loss
allowance depends upon the Consolidated entity's assessment at the end of each reporting period as to whether the
financial instrument's credit risk has increased significantly since initial recognition, based on reasonable and
supportable information that is available, without undue cost or effort to obtain.
Where there has not been a significant increase in exposure to credit risk since initial recognition, a 12-month
expected credit loss allowance is estimated. This represents a portion of the asset's lifetime expected credit losses
that is attributable to a default event that is possible within the next 12 months. Where a financial asset has become
credit impaired or where it is determined that credit risk has increased significantly, the loss allowance is based on
the asset's lifetime expected credit losses. The amount of expected credit loss recognised is measured on the basis
of the probability weighted present value of anticipated cash shortfalls over the life of the instrument discounted at the
original effective interest rate.
For financial assets measured at fair value through other comprehensive income, the loss allowance is recognised
within other comprehensive income. In all other cases, the loss allowance is recognised in profit or loss.
65
65
Lake Resources NL
Notes to the consolidated financial statements
30 June 2024
1
Significant accounting policies (continued)
(j)
Income tax
The income tax expense or credit for the year is the tax payable on the current year's taxable income based on the
applicable income tax rate for each jurisdiction adjusted by changes in deferred tax assets and liabilities attributable
to temporary differences and to unused tax losses.
The current income tax charge is calculated on the basis of the tax laws enacted or substantively enacted at the end
of the reporting year in the countries where the Company and its subsidiaries operate and associates operate and
generate taxable income. Management periodically evaluates positions taken in tax returns with respect to situations
in which applicable tax regulation is subject to interpretation and considers whether it is probable that a taxation
authority will accept an uncertain tax treatment. The Consolidated entity measures its tax balances either based on
the most likely amount or the expected value, depending on which method provides a better prediction of the
resolution of the uncertainty.
Deferred income tax is provided in full, using the liability method, on temporary differences arising between the tax
bases of assets and liabilities and their carrying amounts in the consolidated financial statements. However, deferred
tax liabilities are not recognised if they arise from the initial recognition of goodwill. Deferred income tax is also not
accounted for if it arises from initial recognition of an asset or liability in a transaction other than a business
combination that at the time of the transaction affects neither accounting nor taxable profit or loss and does not give
rise to equal taxable and deductible temporary differences. Deferred income tax is determined using tax rates (and
laws) that have been enacted or substantively enacted by the end of the reporting year and are expected to apply
when the related deferred income tax asset is realised or the deferred income tax liability is settled.
The Deferred tax liability in relation to investment property that is measured at fair value is determined assuming the
property will be recovered entirely through sale.
Deferred tax assets are recognised only if it is probable that future taxable amounts will be available to utilise those
temporary differences and losses.
Deferred tax liabilities and assets are not recognised for temporary differences between the carrying amount and tax
bases of investments in foreign operations where the company is able to control the timing of the reversal of the
temporary differences and it is probable that the differences will not reverse in the foreseeable future.
Deferred tax assets and liabilities are offset where there is a legally enforceable right to offset current tax assets and
liabilities and where the deferred tax balances relate to the same taxation authority. Current tax assets and tax
liabilities are offset where the entity has a legally enforceable right to offset and intends either to settle on a net basis,
or to realise the asset and settle the liability simultaneously.
(k) Current and non-current classification
Assets and liabilities are presented in the statement of financial position based on current and non-current
classification.
An asset is classified as current when: it is either expected to be realised or intended to be sold or consumed in the
Consolidated entity's normal operating cycle; it is held primarily for the purpose of trading; it is expected to be realised
within 12 months after the reporting period; or the asset is cash or cash equivalent, unless restricted from being
exchanged or used to settle a liability for at least 12 months after the reporting period. All other assets are classified
as non-current.
A liability is classified as current when: it is either expected to be settled in the Consolidated entity's normal operating
cycle; it is held primarily for the purpose of trading; it is due to be settled within 12 months after the reporting period;
or there is no unconditional right to defer the settlement of the liability for at least 12 months after the reporting period.
All other liabilities are classified as non-current.
Deferred tax assets and liabilities are always classified as non-current.
LAKE RESOURCES ANNUAL REPORT 2024
66
Lake Resources NL
Notes to the consolidated financial statements
30 June 2024
1
Significant accounting policies (continued)
(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 Consolidated entity's leasing policy are provided in Note 11.
(m) Cash and cash equivalents
Cash and cash equivalents include cash on hand, deposits held at call with banks, or 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.
67
67
Lake Resources NL
Notes to the consolidated financial statements
30 June 2024
1
Significant accounting policies (continued)
(p) Exploration and development expenditure (continued)
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 assets 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.
(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 assets 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 the Consolidated entity's 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.
LAKE RESOURCES ANNUAL REPORT 2024
68
Lake Resources NL
Notes to the consolidated financial statements
30 June 2024
1
Significant accounting policies (continued)
(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.
(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, Black-Scholes or Monte Carlo 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.
69
69
Lake Resources NL
Notes to the consolidated financial statements
30 June 2024
1
Significant accounting policies (continued)
(v) Employee benefits (continued)
(iv) Share-based payments (continued)
The cost of cash-settled transactions is initially, and at each reporting date until vested, determined by applying either
the Binomial or Black-Scholes option pricing model, taking into consideration the terms and conditions on which the
award was granted. The cumulative charge to profit or loss until settlement of the liability is calculated as follows:
•
during the vesting period, the liability at each reporting date is the fair value of the award at that date
multiplied by the expired portion of the vesting period;
•
from the end of the vesting period until settlement of the award, the liability is the full fair value of the liability
at the reporting date.
All changes in the liability are recognised in profit or loss. The ultimate cost of cash-settled transactions is the cash
paid to settle the liability.
Market conditions are taken into consideration in determining fair value. Therefore, any awards subject to market
conditions are considered to vest irrespective of whether or not that market condition has been met, provided all other
conditions are satisfied.
If equity-settled awards are modified, as a minimum, an expense is recognised as if the modification has not been
made. An additional expense is recognised over the remaining vesting period for any modification that increases the
total fair value of the share-based compensation benefit as at the date of modification.
If the non-vesting condition is within the control of the Consolidated entity or employee, the failure to satisfy the
condition is treated as a cancellation. If the condition is not within the control of the Consolidated entity or employee
and is not satisfied during the vesting period, any remaining expense for the award is recognised over the remaining
vesting period, unless the award is forfeited.
If equity-settled awards are cancelled, it is treated as if it has vested on the date of cancellation, and any remaining
expense is recognised immediately. If a new replacement award is substituted for the cancelled award, the cancelled
and new award is treated as if they were a modification.
(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.
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 valuation techniques maximise, to the extent possible, the use of
observable market data.
For non-financial assets, the fair value measurement also takes into account a market participant's ability to use the
asset in its highest and best use or to sell it to another market participant that would use the asset in its highest and
best use.
LAKE RESOURCES ANNUAL REPORT 2024
70
Lake Resources NL
Notes to the consolidated financial statements
30 June 2024
1
Significant accounting policies (continued)
(w) Fair value of assets and liabilities (continued)
Assets and liabilities measured at fair value are classified using a fair value hierarchy that reflects the significance of
the inputs used in making the measurements, using a three level hierarchy, based on the lowest level of input that is
significant to the entire fair value measurement, being:
Level 1:
Quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at
the measurement date;
Level 2:
Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either
directly or indirectly;
Level 3:
Unobservable inputs for the asset or liability.
Classifications are reviewed at each reporting date and transfers between levels are determined based on a
reassessment of the lowest level of input that is significant to the fair value measurement.
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 for the disclosures on inputs used in the fair value measurement fair valuing of financial instruments
as at 30 June 2024.
(x) Provisions
The Consolidated entity records the present value of the estimated cost of legal and constructive obligations to
rehabilitate locations where activities have occurred which have led to a future obligation. The nature of rehabilitation
activities includes dismantling and removing structures, rehabilitating mine sites, dismantling operating facilities,
closure of plant and waste sites and restoration, reclamation and re-vegetation of affected areas.
This obligation arises when the asset is installed, or the environment is disturbed at the development location. The
provision excludes the impact of future disturbance that is planned to occur during the life of mine, so that it
represents only existing disturbance as at 30 June 2024.
When the liability is initially recorded, the present value of the estimated cost is capitalised by increasing the carrying
amount of the related mining assets. The initial close-down and restoration provision is capitalised within “Exploration
and Evaluation asset”. Subsequent movements in the close-down and restoration provisions for ongoing operations
are treated as an adjustment to cost within “Exploration and Evaluation asset”.
Over time, the discounted liability is increased for the change in the present value based on the discount rates that
reflect the current market assessments and the risks specific to the liability, changes to the estimated lives of
operations, or changes to the timing of closure activities. Additional disturbances or changes in decommissioning
costs, will be recognised as additions or changes to the corresponding asset and rehabilitation liability when incurred.
Although the ultimate cost to be incurred is uncertain, the Consolidated entity has estimated its costs based on
feasibility and engineering studies using current restoration standards and techniques.
The unwinding of the effect of discounting the provision is recorded as a finance cost in the Income Statement. The
carrying amount capitalised as a part of mining assets is amortised over the life of the related asset.
7171
Lake Resources NL
Notes to the consolidated financial statements
30 June 2024
1
Significant accounting policies (continued)
(y) Issued capital
Ordinary shares are classified as equity.
Incremental costs directly attributable to the issue of new shares or options are shown in equity as a deduction, net of
tax, from the proceeds.
(z) Earnings per share
(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 ("ATO").
Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net amount of GST
recoverable from, or payable to, the ATO are presented as operating cash flows included in receipts from customers
or payments to suppliers.
Cash flows are presented on a gross basis. The GST components of cash flows arising from investing or financing
activities which are recoverable from, or payable to, the ATO are presented as operating cash flows included in
receipts from customers or payments to suppliers.
Value Added Tax ("VAT") in Argentina is assessable on the sale value of goods and services. To the extent that VAT
credits on purchased goods and services cannot be claimed as refunds, the amount is recognised in Exploration &
Evaluation asset. In FY 2024, VAT receivable is classified as 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.
LAKE RESOURCES ANNUAL REPORT 2024
72
73
73
Lake Resources NL
Notes to the consolidated financial statements
30 June 2024
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, that 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 a
valuation model deemed appropriate taking into account the terms and conditions upon which the instruments were
granted, including Binomial, Black-Scholes, or Monte Carlo models.
The fair value of the options, performance rights and performance units granted are adjusted to reflect market vesting
conditions but excludes the impact of any non-market vesting conditions. Non-market vesting conditions are included
in assumptions about the number of restricted stock unit and performance shares that are expected to vest and
become exercisable. The accounting estimates and assumptions relating to equity-settled share-based payments
would have no impact on the carrying amounts of assets and liabilities within the next annual reporting period but
may impact profit or loss and equity.
Refer to Note 20 for the disclosures on inputs used in the fair value measurement of share-based payments granted
during the year.
(b) Exploration and evaluation costs
Exploration and evaluation costs have been capitalised on the basis that the Consolidated entity will commence
commercial production in the future, from which time the costs will be amortised in proportion to the depletion of the
mineral resources.
Key judgements are applied in considering costs to be capitalised which includes determining expenditures directly
related to these activities and allocating overheads between those that are expensed and capitalised in accordance
with AASB 6. 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,
and future legal changes and changes in commodity prices.
Lake Resources NL
Notes to the consolidated financial statements
30 June 2024
2
Critical accounting judgements, estimates and assumptions (continued)
(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;
(ii) substantive expenditure on further exploration and evaluation of mineral resources in the specific area is neither
budgeted nor planned;
(iii) exploration and evaluation of mineral resources in the specific area have not led to the discovery of commercially
viable quantities of mineral resources and the entity has decided to discontinue such activities in the specific area;
and
(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.
A Final Investment Decision ("FID") to develop the Project is expected to be made after considering the following key
factors: required permits are in place, engineering has reached construction ready status, adequate offtake
agreements have been signed to underwrite any debt requirements, and the Project is funded through a mix of equity
and debt. In order to attract funding, the Project will need to demonstrate technical feasibility and commercial viability.
Once FID has been taken, all past and future exploration and evaluation assets in respect of the area of interest are
tested for impairment and transferred to the cost of development. To date, no development decision has been made.
(c) Provision for rehabilitation and restoration
The Consolidated entity assesses its mine restoration and rehabilitation provision annually in accordance with the
accounting policy. Significant judgement is required in determining the provision for mine restoration and
rehabilitation as there are many transactions and other factors that will affect the ultimate liability payable to
rehabilitate and restore the mine sites. The estimate of future costs therefore requires management to make
assessment of the future restoration and rehabilitation date, future environmental legislation, changes in regulations,
price increases, changes in discount rates, the extent of restoration activities and future removal and rehabilitation
technologies.
These future cost estimates are discounted to their present value. The discount rate used in the calculation of the
provision as at 30 June 2024 is 13.25%. The expected cashflow outflow have been discounted over a 60 year period.
When these factors change or become known in the future, such differences will impact the restoration and
rehabilitation provision in the period in which they change or become known. Estimated costs are recognised
immediately in the Consolidated Statement of Comprehensive Income.
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 United States of America. Accordingly, the information provided to the Board of
Directors is prepared using the same measures used in preparing the financial statements.
LAKE RESOURCES ANNUAL REPORT 2024
74
Lake Resources NL
Notes to the consolidated financial statements
30 June 2024
3
Operating segments (continued)
Segment information (continued)
Geographical information
Argentina
Australia
United States of America
Total
30 June
2024
$
30 June
2023
$
30 June
2024
$
30 June
2023
$
30 June
2024
$
30 June
2023
$
30 June
2024
$
30 June
2023
$
Statement of Profit or Loss and Other Comprehensive Income
space
Loss after income tax expense for the
year
(10,566,936)
21,784,877
(22,930,973) (60,083,254)
(20,524,687)
(8,954,666)
(54,022,596) (47,253,043)
Asset additions
Exploration expenditure
37,565,268
66,522,685
-
-
-
-
37,565,268
66,522,685
Property, plant and equipment
184,774
1,292,310
-
26,584
555,050
-
739,824
1,318,894
Right-of-Use Lease Asset
-
129,437
-
-
1,760,931
1,386,775
1,760,931
1,516,212
space
Total segment assets
50,733,756
79,596,736
60,336,557 102,734,625
66,564,669
11,085,953
177,634,982 193,417,314
Total segment liabilities
(100,540,744) (84,710,418) 173,282,884
87,708,068
(95,803,802) (20,090,478)
(23,061,662) (17,092,828)
(130,140,628)(207,876,908) 158,808,273 105,139,951 (121,319,097) (13,267,099)
(92,651,452)(116,004,056)
75
75
2024
$
2023
$
(681,628)
(506,379)
(21,811,232)
(25,071,321)
(22,492,860)
(25,577,700)
2024
$
2023
$
266,530
398,887
293,560
211,693
1,680,376
1,636,218
682,109
726,470
2,922,575
2,973,268
1,575,724
3,276,135
3,555,181
3,692,857
40,634
539,610
835,007
808,548
1,118,642
507,289
480,234
399,733
159,803
221,534
7,765,225
9,445,706
115,701
185,583
23,128,012
13,792,361
23,243,713
13,977,944
2,334,938
11,959,835
1,296,115
-
-
(57,467)
3,268,877
1,116,627
6,899,930
13,018,995
Lake Resources NL
Notes to the consolidated financial statements
30 June 2024
4 Foreign exchange losses
Realised loss
Unrealised 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
1
Computer/Software licence fees
a
(b) Corporate expenses
Travel
Insurance
Auditors fees
Investor relations
IT support service costs
Share registry maintenance
Marketing expenses - advertising
a
(c) Employee benefit expense
Superannuation
Wages, salary and other benefits
2
a
(d) Share based payment
Share-Based Payments - Options
Share-Based Payments - Performance Stock Units
Share-Based Payments - Performance Shares
Share-Based payments - Restricted Stock Units
a
LAKE RESOURCES ANNUAL REPORT 2024
76
Lake Resources NL
Notes to the consolidated financial statements
30 June 2024
5
Loss before income tax (continued)
(e) Consultancy and legal costs
Directors fees
911,185
1,288,722
Other
1,237,938
1,003,753
Consulting Fee
3,450,233
10,494,681
Legal expenses
3
4,575,201
2,617,371
10,174,557
15,404,527
a
(f) Finance (income) and expenses
Interest and finance charges payable for lease liabilities
137,012
182,834
Interest expense
11,658
14,074
148,670
196,908
a
(1)
Other expenses includes Argentina local tax payments and statutory obligations incidental to the exploration
activities in the region.
(2)
In 2024, approximately $7,923,942 was recognised for severance and termination payments, approximately
$1,338,083 was recognised for short-term incentives and the remaining balance is employee wages.
(3)
In 2024, increased legal services were provided by external providers for Corporate, regulatory and advisory
matters.
(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 and 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
$21,720,572 was recognised in the year (2023: $43,696,631). The Group held no unsettled MEP Dollar bonds at 30
June 2024 (30 June 2023: $Nil).
Argentina pesos to other country conversions changed approximately by 80% due to peso devaluation in June 2024.
77
77
Lake Resources NL
Notes to the consolidated financial statements
30 June 2024
6
Income tax expense
(a) Reconciliation
2024
$
2023
$
Current tax on profits for the year
(5,950,320)
(7,696,875)
Deferred income tax benefit
5,966,330
8,143,514
Aggregated Income tax (benefit)/expense
16,010
446,639
(b) Numerical reconciliation of income tax expense
The prima facie income tax on the loss is reconciled to the income tax expense as
follows:
(54,006,586)
(23,504,571)
Prima facie tax benefit 30% (2023 - 30%) on loss before income tax
(16,201,976)
(7,051,371)
space
Add tax effect of:
Tax rate differential
1,605,120
-
Non deductible expenses
8,586,151
3,400,791
Deferred tax asset not recognised
5,966,330
8,143,514
Argentinian tax inflation adjustment
60,385
(4,046,295)
Income tax expense
16,010
446,639
53,990,576
23,057,932
The Consolidated entity has unrecouped, unconfirmed carry forward tax losses of approximately $104,041,099 (2023:
$81,380,323).
A deferred income tax asset arising from carry forward tax losses will only be recognised to the extent that:
(a)
it is probable that the Consolidated entity will derive future assessable income of a nature and of an amount
sufficient to enable the benefits from the deductions for the losses to be realised;
(b)
the Consolidated entity continues to comply with the conditions for deductibility imposed by the law; and
(c)
no changes in tax legislation adversely affect the Consolidated entity in realising the benefit from the losses.
LAKE RESOURCES ANNUAL REPORT 2024
78
Lake Resources NL
Notes to the consolidated financial statements
30 June 2024
6
Income tax expense (continued)
(c) Deferred tax assets
2024
$
2023
$
The balance comprises temporary differences attributable to:
Accrued expenses
353,048
677,686
Employee provisions
16,402
95,176
Business related costs (s 40-880)
19,404
41,861
Unrealised foreign exchange losses
229,279
54,343
Carry forward losses
31,728,567
24,414,097
32,346,700
25,283,163
Deferred tax assets not recognised in equity:
Capital Raising Expenses
642,940
689,861
Total Deferred tax assets
32,989,640
25,973,024
Set-off of deferred tax liabilities pursuant to set-off provisions
(11,485,190)
(8,757,238)
Deferred tax assets not recognised
(21,504,450)
(17,215,786)
Net Deferred tax assets
-
-
(d) Deferred tax liabilities
2024
$
2023
$
The balance comprises temporary differences attributable to:
Exploration Expenditure
(11,485,190)
(8,757,238)
Total Deferred tax liabilities
(11,485,190)
(8,757,238)
Set-off of deferred tax liabilities pursuant to set-off provisions
11,485,190
8,757,238
Net Deferred tax liabilities
-
-
79
79
Lake Resources NL
Notes to the consolidated financial statements
30 June 2024
7
Cash and cash equivalents
2024
$
2023
$
Current assets
Cash at bank
12,567,026
26,362,624
Deposits at call
10,334,987
62,854,842
22,902,013
89,217,466
8
Trade receivables
(a) Current assets
2024
$
2023
$
Current assets
Other receivables
965,176
582,449
Related party receivable
-
200,000
Interest receivable
-
291,899
Security deposit
916,952
860,875
1,882,128
1,935,223
As at 30 June 2023, a net related party receivable balance of $200,000 represents cash advances to Mr. Promnitz.
During the year, the expense demands and the disputed amounts have been resolved to the satisfaction of all parties
and final settlement amount was received during the 2024 financial year.
Security deposit balances relates to corporate credit cards and payroll administration service organisation.
(b) VAT Receivable
2024
$
2023
$
Non current
Other financial assets
1,706,598
1,046,001
LAKE RESOURCES ANNUAL REPORT 2024
80
Lake Resources NL
Notes to the consolidated financial statements
30 June 2024
8
Trade receivables (continued)
(b) VAT Receivable (continued)
Movement in VAT receivable
2024
2023
$
$
Opening balance
1,046,001
4,147,682
Additions
2,963,727
7,301,424
Gain or (loss) on remeasurement
(2,998,623)
(10,661,443)
Exchange differences
695,493
258,338
Closing balance
1,706,598
1,046,001
The Consolidated entity has a total of $1,706,598 (2023: $1,046,001) of non-current Value Added Tax ("VAT")
recoveries due from the Argentina Revenue Authority. The Consolidated entity 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.
Loss on re-measurement during the year was $2,998,623 (2023: $10,661,443).
9
Other current assets
2024
$
2023
$
Prepayments
732,899
1,412,238
Deposits
-
324
Payroll tax asset
37,469
-
Current Tax Asset
6,447
7,773
776,815
1,420,335
10 Exploration and evaluation, development and mine properties
2024
$
2023
$
Exploration and evaluation asset
Opening net book amount
98,175,863
41,549,942
Additions - direct exploration cost
37,565,268
66,522,685
Effect of foreign currency translation
7,120,676
(9,896,764)
142,861,807
98,175,863
Provision for Rehabilitation and Restoration
Cost
2,735,981
-
145,597,788
98,175,863
The provision for rehabilitation and restoration will continue to be revalued every financial year. Refer to Note 15 for
provision for rehabilitation and restoration.
81
81
Lake Resources NL
Notes to the consolidated financial statements
30 June 2024
10 Exploration and evaluation, development and mine properties (continued)
The ultimate recoupment of exploration and evaluation expenditure in respect of an area of interest carried forward is
dependent upon the discovery of commercially viable reserves and the successful development and exploitation of
the respective areas, or alternatively, sale of the underlying areas of interest for at least their carrying value.
Amortisation, in respect of the relevant area of interest, is not charged until a mining operation has commenced.
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 2024. The recoverability of
exploration project acquisition costs is dependent upon the successful development and commercial exploitation, or
alternatively the sale of areas of interest.
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:
2024
$
2023
$
Right-of-use assets
Opening balance
80,806
229,692
Additions
1,760,931
1,516,212
Accumulated depreciation
(624,546)
(71,400)
Exchange differences
22,457
(257,778)
Asset write off
(26,986)
(1,335,920)
Net book amount
1,212,662
80,806
Lease liabilities
Current
904,345
348,354
Non-current
1,475,187
1,324,490
2,379,532
1,672,844
In September 2023, Lake Corporate Inc. a subsidiary of Lake Resources NL entered into a 32- month lease for
an office space in Texas with commencement date 15 September 2023, with no option to renew.
As at 30 June 2023, the office space in Florida was completely impaired on the basis that there had been
no indicators that the property will be used or sub-leased.
As at 1 December 2023, the office space in Florida has been successfully sub-leased for 51- month effective from
1 December 2023 to 29 February 2028 with no option to renew. Cash inflow from sub-lease has been recognised
as rental income in Consolidated statement of profit or loss and other comprehensive income.
Lake continues to have the obligation to make lease payments. The outstanding lease liability on the Florida
property as at 30 June 2024 is $1,124,172 (30 June 2023: $1,406,222).
LAKE RESOURCES ANNUAL REPORT 2024
82
Lake Resources NL
Notes to the consolidated financial statements
30 June 2024
11 Right-of-use asset and lease liabilities (continued)
(b) Amounts recognised in the statement of profit or loss and other comprehensive income
2024
$
2023
$
Depreciation charge of right of use assets
557,310
59,951
Interest expenses
137,012
182,834
(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 125.55% 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).
83
83
Lake Resources NL
Notes to the consolidated financial statements
30 June 2024
11 Right-of-use asset and lease liabilities (continued)
(f)
The Group as a lessor
Leases in which the Group does not transfer substantially all the risks and rewards incidental to ownership of an
asset are classified as operating leases. Rental income arising is accounted for on a straight-line basis over the lease
terms and is included in revenue in the statement of profit or loss due to its operating nature. Initial direct costs
incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and
recognised over the lease term on the same basis as rental income.
12 Property, plant and equipment
Consolidated
30 June 2024
$
30 June 2023
$
Plant and Equipment
Cost
1,694,193
1,036,243
Accumulated depreciation
(8,718)
(9,157)
Total plant and equipment
1,685,475
1,027,086
Furniture, fittings and equipment
Cost
159,658
38,038
Accumulated depreciation
(8,510)
(7,154)
Total furniture, fittings and equipment
151,148
30,884
Machinery and vehicles
Cost
504,567
205,658
Accumulated depreciation
(28,854)
(64,361)
Total machinery and vehicles
475,713
141,297
Building improvement
Cost
88,763
36,571
Accumulated depreciation
(1,526)
(3,655)
Total building improvement
87,237
32,916
Other property, plant and equipment
Cost
1,243,185
375,754
Accumulated depreciation
(85,781)
(66,317)
Total other property, plant and equipment
1,157,404
309,437
Total property, plant and equipment
3,556,977
1,541,620
LAKE RESOURCES ANNUAL REPORT 2024
84
Lake Resources NL
Notes to the consolidated financial statements
30 June 2024
12 Property, plant and equipment (continued)
Plant and
equipment
$
Furniture,
fittings and
equipment
$
Machinery
and vehicles
$
Building
improvements
$
Other
property,
plant and
equipment
$
Total
$
30 June 2024
Carrying amount at 1
July 2023
1,027,086
30,884
141,297
32,916
309,437
1,541,620
Exchange differences
571,261
91,246
355,207
55,282
327,614
1,400,610
Additions
94,964
35,953
-
-
608,907
739,824
Depreciation charge
(7,836)
(6,935)
(20,791)
(961)
(88,554)
(125,077)
Carrying amount at
30 June 2024
1,685,475
151,148
475,713
87,237
1,157,404
3,556,977
30 June 2023
Carrying amount at 1
July 2022
48,729
61,547
358,428
69,112
102,807
640,623
Exchange differences
(22,141)
(30,352)
(176,753)
(33,738)
(59,153)
(322,137)
Additions
1,008,808
3,925
-
-
306,161
1,318,894
Depreciation charge
(8,310)
(4,236)
(40,378)
(2,458)
(40,378)
(95,760)
Carrying amount at
30 June 2023
1,027,086
30,884
141,297
32,916
309,437
1,541,620
(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
25 - 40 years
•
Plant and equipment
10 - 20 years
•
Machinery and Vehicles
3 - 5 years
•
Furniture, fittings and equipment
3 - 8 years
•
Other property, plant and equipment
3 - 8 years
Leasehold improvements are depreciated over the shorter of their useful life or the lease term, unless the entity
expects to use the assets beyond the lease term.
All other property, plant and equipment is recognised at historical cost, less depreciation.
85
85
Lake Resources NL
Notes to the consolidated financial statements
30 June 2024
13 Trade and other payables
2024
$
2023
$
Current liabilities
Trade payables
709,708
3,653,301
Accrued expenses (Refer to note 13 (a))
2,507,352
7,529,576
Payroll tax and other statutory liabilities
56,549
64,948
Other payables
177,232
-
3,450,841
11,247,825
(a) Accrued expenses
2024
$
2023
$
Operating Accruals
1,644,291
2,876,643
Drilling and well design cost
363,876
2,369,688
Camp construction & maintenance cost
499,185
2,283,245
2,507,352
7,529,576
14 Employee benefit obligations
2024
2023
Current
$
Non-
current
$
Current
$
Non-
current
$
Annual leave
227,193
-
1,026,847
-
Provision for Short-term Incentive
6,165,786
-
2,830,467
-
Employee Benefits: Leave and other benefits payable
142,218
828
313,349
1,494
Severance payable
7,959,283
-
-
-
Closing balance at 30 June
14,494,480
828
4,170,663
1,494
Short-term incentive
Short-term incentive awards were recognised for certain employees taking into consideration each individuals
contributions and Lake's overall business activities. $4,619,534 is related to unpaid entitlements earned through the
calendar year ending 31 December 2023. $1,546,252 is related to accrual estimates for the calendar year ending 31
December 2024.
Severance payable
Severance payable reflects separation costs associated with termination of certain executives. $5,508,101 reflects
cash severance payable over 12 months and $2,451,182 reflects contingent amounts payable upon the achievement
of a change in control event, a final investment decision in respect of the Kachi Project, or a significant liquidity event.
LAKE RESOURCES ANNUAL REPORT 2024
86
Lake Resources NL
Notes to the consolidated financial statements
30 June 2024
15 Provision for rehabilitation and restoration
Provisions are made for the estimated cost of rehabilitation, restoration and dismantling relating to areas disturbed
during operations up to the reporting date, but not yet rehabilitated. Provision has been made in full for all the
disturbed areas at the reporting date on current estimates of costs to rehabilitate such areas, discounted to their
present value, based on expected future cashflows.
Movements in the rehabilitation and restoration provision during the financial year are set out below:
2024
Total
$
Carrying amount at start of year
-
Movements in economic assumptions and timing of cashflows
2,735,981
Carrying amount at end of year
2,735,981
16 Equity
(a) Issued capital
2024
Shares
2023
Shares
2024
$
2023
$
Ordinary shares - fully paid
1,663,125,143 1,422,444,707
243,371,941
229,703,796
87
87
Lake Resources NL
Notes to the consolidated financial statements
30 June 2024
16 Equity (continued)
(b) Movements in share capital
Details
Notes
Number of
shares
Issue
price
$
$
Opening balance 1 July 2022
1,389,709,907
-
231,179,318
Issue of shares - Exercise of RSUs (Employee Award Plan)
1,000,000
0.300
300,000
Exercise of option
2,274,157
0.300
682,061
Share issue - Acuity Capital
25,000,000
-
-
Share issue- Conversion of Performance rights
2,500,003
-
-
Exercise of options
26,000
0.490
12,740
Exercise of options
43,000
0.490
21,070
Exercise of options
64,300
0.300
19,290
Exercise of options
37,503
0.300
11,250
Exercise of options
93,000
0.490
45,570
Exercise of options
225,000
0.750
168,750
Exercise of options
700,000
0.750
525,000
Exercise of options
350,000
0.750
262,500
Exercise of options
400,000
0.750
300,000
Exercise of options
21,837
-
-
Less: Transaction costs arising on share issue - as cash
-
-
(334,057)
Less: Transaction cost arising on options issued - to brokers
-
-
(3,489,696)
Balance 30 June 2023
1,422,444,707
-
229,703,796
Issue of shares - Exercise of RSUs (Employee Award Plan)
1,449,091
-
-
Issue of shares - Exercise of RSUs (Employee Award Plan)
176,708
-
-
Share issue
213,610,575
0.070
14,952,741
Shares issued under SPP
37,500
-
-
Shares issued under SPP
21,549,799
0.070
1,508,500
Issue of shares - Exercise of RSUs (Employee Award Plan)
3,738,116
-
-
Issue of shares - Exercise of RSUs (Employee Award Plan)
118,647
-
-
Less: Transaction costs arising on share issue - as cash
-
-
(1,569,932)
Less: Transaction cost arising on options issued - to brokers
20(b)
-
-
(1,223,164)
Balance 30 June 2024
1,663,125,143
-
243,371,941
(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.
(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 20.
LAKE RESOURCES ANNUAL REPORT 2024
88
Lake Resources NL
Notes to the consolidated financial statements
30 June 2024
16 Equity (continued)
(e) Performance rights
Movements in performance rights were as follows:
Name
Number of
Rights
granted
Grant date
Expiry date
Fair value at
grant date
Vested and
exercised in a
prior year
Forfeited in
prior year
Vested and
exercised
during the
year
Unvested
as at 30
June 2024
S. Crow
5,000,000
15-Aug-19
15-Aug-24
$0.0575
-
-
-
5,000,000
The terms and conditions of performance rights on issue at 30 June 2024 affecting remuneration of Directors and
other KMP in this financial year or future reporting years are as follows:
Grant
date
Expiry date
Value at
Grant
No. of
Rights
Granted
Performance
Hurdle
Performance
achieved
No. vested
and
exercised
No. of
unvested
performance
rights
No.
expired
during
the
period
15-Aug-19 15-Aug-24
$0.0575
2,500,000
Pilot plants
100%
2,500,000
-
-
15-Aug-19 15-Aug-24
$0.0575
7,500,000
Investor
100%
2,500,000
5,000,000
-
Mr. Crow’s 5 million performance rights expired on 15 August 2024.
89
89
Lake Resources NL
Notes to the consolidated financial statements
30 June 2024
16 Equity (continued)
(f)
Options
Movements in options were as follows:
Grant /
Vest date
Expiry
date
Exercise
price
Balance at 1
July 2023
Issued
Forfeit
Adjustment
Balance at
30 June 2024
Option issued to Staff
13-Jul-21
12-Jul-24
$0.55
2,000,000
-
-
-
2,000,000
Option issued to Brokers/
Consultants
1-Aug-22
1-Aug-24
$0.50
5,601,000
-
-
-
5,601,000
Option issued to Staff
14-Oct-21
25-Oct-25
$0.57
2,000,000
-
-
-
2,000,000
Option issued to Staff
19-Jan-22
19-Jan-25
$1.48
1,000,000
-
-
-
1,000,000
Option issued to Staff
19-Jan-22
19-Jan-25
$0.70
1,000,000
-
-
-
1,000,000
Option issued to Brokers/
Consultants
26-Apr-22
26-Apr-25
$1.42
1,036,122
-
-
-
1,036,122
Option issued to Brokers/
Consultants
26-Apr-22
26-Apr-25
$1.42
1,036,122
-
-
-
1,036,122
Option issued to Brokers/
Consultants
26-Aug-22 26-Aug-25
$1.42
1,000,000
-
-
-
1,000,000
Option issued to Staff
12-Sep-22
15-Jun-25
$0.75
280,000
-
-
-
280,000
Option issued to Brokers/
Consultants
12-Sep-22
15-Jun-25
$0.75
1,260,000
-
-
-
1,260,000
Option issued to Brokers/
Consultants
15-Sep-22 15-Sep-27
$1.13
4,000,000
-
-
-
4,000,000
Option issued to Brokers/
Consultants
24-Oct-22
24-Oct-25
$1.00
1,500,000
-
-
-
1,500,000
Option issued to Brokers/
Consultants
24-Oct-22
24-Oct-25
$1.00
1,500,000
-
-
-
1,500,000
Option issued to Staff
10-Oct-22
10-Oct-27
$0.99
500,000
-
(375,000)
-
125,000
Option issued to KMP
12-Sep-22
15-Jun-25
$0.75
4,010,000
-
-
-
4,010,000
Option issued to Staff
14-Nov-22 14-Nov-27
$1.17
75,000
-
(56,250)
-
18,750
Option issued to Staff
11-Oct-22
11-Oct-27
$0.99
300,000
-
(225,000)
-
75,000
Option issued to Staff
11-Nov-22 21-Nov-27
$1.06
50,000
-
(37,500)
-
12,500
Option issued to Staff
1-Jan-23
1-Jan-27
$0.83
851,700
-
(56,250)
(41,950)
753,500
Option issued to Staff
9-Jan-23
9-Jan-27
$0.80
1,000,000
-
-
-
1,000,000
Option issued to Staff
11-Jan-23
11-Jan-27
$0.84
75,000
-
(56,250)
-
18,750
Option issued to Staff
16 -Jan-23
16-Jan-27
$0.99
100,000
-
-
-
100,000
Option issued to Staff
1-Feb-23
1-Feb-27
$0.82
1,145,692
-
-
192,964
1,338,656
Option issued to Staff
1-April-23
1-April-27
$0.45
150,000
-
(56,250)
-
93,750
Option issued to Staff
20-Jun-23
20-Jun-27
$0.31
882,352
-
-
(249,569)
632,783
Option issued to Staff
11-Aug-23 11-Aug-27
$0.21
-
75,000
-
-
75,000
$22.90
32,352,988
75,000
(862,500)
(98,555)
31,466,933
Adjustment relates true-up of options issued in the prior year to fixed monetary value to align with employee grant
agreement issued during the year. This is reflective of changes in share price between employee employment offer
date and grant date on the Grant letter.
LAKE RESOURCES ANNUAL REPORT 2024
90
Lake Resources NL
Notes to the consolidated financial statements
30 June 2024
16 Equity (continued)
(f)
Options (continued)
(i)
The status of the outstanding options balance at 30 June 2024 is as follows:
Grant/ Vest
date
Expiry
date
Exercise
Price
Balance at 30
June 2024
Options
Vested
Options
Exercisable
Options
unvested
Options
Unexercisable
Option issued to Staff
13-Jul-21
12-Jul-24
$0.55
2,000,000
2,000,000
2,000,000
-
-
Option issued to Brokers/
Consultants
1-Aug-22
1-Aug-24
$0.50
5,601,000
5,601,000
5,601,000
-
-
Option issued to Brokers/
Consultants
19-Jan-22 19-Jan-25
$1.48
1,000,000
1,000,000
1,000,000
-
-
Option issued to Brokers/
Consultants
14-Oct-21 25-Oct-24
$0.57
2,000,000
2,000,000
2,000,000
-
-
Option issued to Staff
26-Apr-22 26-Apr-25
$1.42
1,036,122
1,036,122
1,036,122
-
-
Option issued to Brokers/
Consultants
26-Apr-22 26-Apr-25
$1.42
1,036,122
1,036,122
1,036,122
-
-
Option issued to Staff
20-Jul-22
20-Jul-25
$0.70
1,000,000
1,000,000
1,000,000
-
Option issued to Staff
26-Aug-22 26-Aug-25
$1.42
1,000,000
1,000,000
1,000,000
-
-
Option issued to Staff
12-Sep-22 15-Jun-25
$0.75
280,000
-
-
280,000
280,000
Option issued to Brokers/
Consultants
12-Sep-22 15-Jun-25
$0.75
1,260,000
-
-
1,260,000
1,260,000
Option issued to Director
15-Sep-22 15-Sep-27
$1.13
4,000,000
1,000,000
1,000,000
3,000,000
3,000,000
Option issued to Brokers/
Consultants
24-Oct-22 24-Oct-25
$1.00
1,500,000
-
-
1,500,000
1,500,000
Option issued to Brokers/
Consultants
24-Oct-22 24-Oct-25
$1.00
1,500,000
-
-
1,500,000
1,500,000
Option issued to Staff
10-Oct-22 10-Oct-27
$0.99
125,000
125,000
125,000
-
-
Option issued to Director
12-Sep-22 15-Jun-25
$0.75
4,010,000
-
-
4,010,000
4,010,000
Option issued to Staff
14-Nov-22 14-Nov-27
$1.17
18,750
18,750
18,750
-
-
Option issued to Staff
11-Oct-22 11-Oct-27
$0.99
75,000
75,000
75,000
-
-
Option issued to Staff
11-Nov-22 21-Nov-27
$1.06
12,500
12,500
12,500
-
-
Option issued to Staff
1-Jan-23
1-Jan-27
$0.80
753,500
202,437
202,437
551,063
551,063
Option issued to Staff
9-Jan-23
9-Jan-27
$0.83
1,000,000
1,000,000
1,000,000
-
-
Option issued to Staff
11-Jan-23 11-Jan-27
$0.84
18,750
18,750
18,750
-
-
Option issued to Staff
16-Jan-23 16-Jan-27
$0.83
100,000
25,000
25,000
75,000
75,000
Option issued to Staff
1-Feb-23
1-Feb-27
$0.82
1,338,656
-
-
1,338,656
1,338,656
Option issued to Staff
1-Apr-23
1-Apr-27
$0.45
93,750
18,750
18,750
75,000
75,000
Option issued to Staff
20-Jun-23 20-Jun-27
$0.31
632,783
-
-
632,783
632,783
Option issued to Staff
11-Aug-23 11-Aug-27
$0.21
75,000
-
-
75,000
75,000
31,466,933
17,169,431
17,169,431 14,297,502
14,297,502
91
91
Lake Resources NL
Notes to the consolidated financial statements
30 June 2024
16 Equity (continued)
(g) Restricted stock unit
Movements in restricted stock units were as follows:
Grant
date
Expiry/ Vest
date
Exercise
Price
Balance at
1 July 2023
Issued
Exercised
Vested
Adjustment*
Forfeited
Balance at
30 June 2024
15-Sep-22 15-Sep-26
$0.93
1,000,000
-
(250,000)
-
-
-
750,000
11-Oct-22
11-Oct-27
$0.99
-
-
-
-
-
-
-
10-Oct-22
10-Oct-27
$1.00
150,000
-
(37,500)
-
-
(112,500)
-
4-Nov-22
4-Nov-26
$1.07
50,000
-
-
-
(50,000)
-
-
7-Nov-22
10-Oct-27
$0.99
100,000
-
(25,000)
-
-
(75,000)
-
14-Nov-22
14-Nov27
$1.18
75,000
-
(18,750)
(56,250)
-
-
-
1-Dec-22
1-Dec-23
$1.01
232,500
-
(232,500)
-
-
-
-
2-Dec-22
2-Dec-23
$1.03
232,500
-
(232,500)
-
-
-
-
1-Jan-23
1-Jan-28
$0.80
701,852
-
(349,092)
(56,250)
(20,984)
-
275,526
11Jan-23
11-Jan-28
$0.84
75,000
-
(75,000)
-
-
-
-
16-Jan-23
16-Jan-28
$0.83
50,000
-
(12,500)
-
-
-
37,500
1-Feb-23
1-Feb-28
$0.81
881,896
-
(176,707)
-
(175,068)
-
530,121
1-Apr-23
1-Apr-28
$0.45
150,000
-
(37,500)
(56,250)
-
-
56,250
20-Jun-23
20-Jun-27
$0.46
441,176
-
(118,647)
-
33,411
-
355,940
1-Jul-23
1-Jul-23
$0.30
-
272,499
(272,499)
-
-
-
-
11-Aug-23 11-Aug-27
$0.21
-
150,000
-
-
-
-
150,000
11-Dec-23 11-Dec-27
$0.13
-
52,952,718
(3,681,866) (5,226,935)
-
(6,954,635)
37,089,282
4,139,924
53,375,217
(5,520,061) (5,395,685)
(212,641)
(7,142,135)
39,244,619
*Adjustment relates true-up of RSU's issued in the prior year to fixed monetary value to align with employee signed
grant agreement issued during the year. This is reflective of change in share price between employee employment
offer date and grant date on the Grant letter
(h) Performance shares
The movements in performance shares were as follows:
Grant date
Expiry date
Balance at the
start of the year
Granted
Converted to
Shares
Expired
Forfeited
Balance at the
end of the year
24-Feb-22
12-Sep-23
167,142
-
-
(167,142)
-
-
24-Feb-22
12-Sep-24
250,714
-
-
-
(250,714)
-
12-Sept-22
22-Jan-24
33,058
-
-
(33,058)
-
-
12-Sept-22
22-Jan-24
39,669
-
-
(39,669)
-
-
12-Sept-22
22-Nov-24
92,563
-
-
-
(92,563)
-
583,146
-
-
(239,869)
(343,277)
-
(i)
Performance stock units
The movements in performance stocks were as follows:
Grant date
Expiry date
Balance at the
start of the year
Granted
Vested
Expired
Forfeited
Balance at the
end of the year
11-Dec-23
11-Dec-26
-
36,683,617
(2,454,578)
-
(712,616)
34,229,039
-
36,683,617
(2,454,578)
-
(712,616)
34,229,039
LAKE RESOURCES ANNUAL REPORT 2024
92
Lake Resources NL
Notes to the consolidated financial statements
30 June 2024
16 Equity (continued)
(j)
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.
17 Equity - reserves
2024
$
2023
$
Change in proportionate interest reserve
(8,464,134)
(8,464,134)
Capital profits reserve
4,997
4,997
Performance stock reserve
1,442,950
912,663
Restricted stock units reserve
1,487,395
1,172,327
Foreign currency translation reserve
4,359,985
(7,988,445)
Option reserve
24,385,123
20,876,359
Total equity reserves
23,216,316
6,513,767
(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 stock reserve
The performance stock reserve is to recognise the fair value of performance stock issued for share based payment to
employees and service providers in relation to the supply of goods or services. Once performance stock in a series
have all been exercised or have expired, the reserve related to those performance stocks is transferred to
accumulated losses.
(e) Restricted stock unit reserve
The restricted stock unit reserve is to recognise the fair value of restricted stock unit issued for share based payment
to employees and service providers in relation to the supply of goods or services. Once restricted stock unit in a
series have all been exercised or have expired, the reserve related to those restricted stock unit is transferred to
accumulated losses.
(f)
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.
93
93
Lake Resources NL
Notes to the consolidated financial statements
30 June 2024
17 Equity - reserves (continued)
(g) Movements in reserves
Movements in each class of reserve during the current and previous financial year are set out below:
Capital profit
reserve
$
Option
reserve
$
Performance
rights and
restricted
stock units
reserve
$
Change in
proportionate
interest
reserve
$
Foreign
currency
translation
reserve
$
Total other
reserves
$
At 1 July 2022
4,997
8,068,140
970,130
-
465,152
9,508,419
Issue of unlisted options
-
3,489,696
-
-
-
3,489,696
Transfer from option/PSU/RSU
reserve to accumulated losses on
equity instrument expiry/exercise
-
(2,641,312)
-
-
-
(2,641,312)
Other comprehensive income
-
-
-
-
(8,453,597)
(8,453,597)
Share-based payment - fee for
service
-
11,959,835
1,172,327
-
-
13,132,162
Unwinding performance rights to
Directors
-
-
(57,467)
-
-
(57,467)
Change in proportionate interest
reserve
-
-
-
(8,464,134)
-
(8,464,134)
At 30 June 2023
4,997
20,876,359
2,084,990
(8,464,134)
(7,988,445)
6,513,767
Capital profit
reserve
$
Option
reserve
$
Performance
rights and
restricted
stock units
reserve
$
Change in
proportionate
interest
reserve
$
Foreign
currency
translation
reserve
$
Total other
reserves
$
At 1 July 2023
4,997
20,876,359
2,084,990
(8,464,134)
(7,988,445)
6,513,767
Issue of unlisted options
-
1,223,065
-
-
-
1,223,065
Transfer from option/PSU/RSU
reserve to accumulated losses on
equity instrument expiry/exercise
-
-
(3,988,790)
-
-
(3,988,790)
Other comprehensive income
-
-
-
-
12,348,430
12,348,430
Share-based payment - fee for
service
-
2,285,699
4,834,145
-
-
7,119,844
At 30 June 2024
4,997
24,385,123
2,930,345
(8,464,134)
4,359,985
23,216,316
LAKE RESOURCES ANNUAL REPORT 2024
94
2024
$
2023
$
(52,455,552)
(45,754,115)
Number
Number
1,489,373,660 1,403,395,825
1,489,373,660 1,403,395,825
Cents
Cents
(3.52)
(3.26)
Lake Resources NL
Notes to the consolidated financial statements
30 June 2024
18 Earnings per share
Loss after income tax attributable to the owners of Lake Resources NL
Weighted average number of ordinary shares used in calculating basic and
diluted earnings per share
Weighted average number of ordinary shares used in calculating diluted
earnings per share
Basic loss per share
Diluted loss per share
(3.52)
(3.26)
Options, PSU's, RSU's, Performance shares and Performance rights over ordinary shares are considered potential
ordinary shares. For the year ended 30 June 2024, 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 equity instruments are set out at Notes 20 and 21. 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.
19 Dividends
There were no dividends paid, recommended or declared during the current or previous financial year.
20 Share-based payments
2024
$
2023
$
Expensed to profit or loss - options (Note 20 (a)(i))
2,334,938
11,959,835
Expensed to profit or loss - performance stock unit (Note 20 (a)(ii))
1,296,115
-
Capitalised as equity transaction cost (Note 20 (b))
1,223,164
3,489,696
Expensed to profit or loss - RSU (Note 20 (a)(iii))
3,268,877
1,116,628
Expensed to profit or loss - performance shares (Note 20 (a)(ii))
-
(57,467)
Total
8,123,094
16,508,692
Adjusted to equity
Reserve
8,123,094
16,508,692
95
95
Lake Resources NL
Notes to the consolidated financial statements
30 June 2024
20 Share-based payments (continued)
(a) (i) 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:
2024
$
2023
$
Options issued to brokers and consultants
-
8,768,375
Options issued to executives and employees
2,334,938
3,191,460
2,334,938
11,959,835
The options issued to KMP and senior management as part of Lake's Employee Award Program approved during the
period are detailed in Note 21.
(ii) Performance shares issued to Employees and Key Management Personnel
Directors exercised judgement in assessing that the likelihood of the remaining hurdles for the vesting of the
performance shares has materially changed since the prior year. Accordingly for the year ended 30 June 2024, nil
(2023: ($57,467)) was expensed in the profit or loss. 167,142 performances shares expired and 250,714 were
forfeited during the year.
(iii) Performance stock units issued to Employees and Key Management Personnel
2024
$
2023
$
1,584,119
-
Performance Stock Unit issued under employee award plan (expensed)
Performance Stock Unit issued under employee award plan (capitalised in
exploration
(288,004)
-
1,296,115
-
Market based conditions were factored into the grant date fair value valuation and are not reassessed. Accordingly
for the year ended 30 June 2024, $1,296,115 was expensed in the profit or loss, while $288,004 was capitalised
during the year. During the year, the Board approved immediate vesting of the performance stock units for employee
staff involuntary separation from the Company through a reduction in workforce during the year.
Details of performance stock issued during the year are detailed in Note 21(c).
Position
Number of
rights
granted
Performance measure
Measurement
date
Expenses recognised at 30 June
2024
Senior
Management
Position
36,683,617
250% of current share price.
400% of current share price.
500% of current share price.
750% of current share price.
11-Dec-23
$1,296,115 were recognised during
the period.
LAKE RESOURCES ANNUAL REPORT 2024
96
2024
$
2023
$
3,268,899
1,116,628
(18,950)
55,699
3,249,949
1,172,327
Lake Resources NL
Notes to the consolidated financial statements
30 June 2024
20 Share-based payments (continued)
(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 (capitalised in exploration
and evaluation assets)
Refer to details of Restricted stock unit issued to Note 21(a).
(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:
Grant
date
Expiry date
Exercise
price
Granted
Charged to
Equity
Canacord Tranch 1
16-Jul-21
31-Dec-24
$0.55
10,000,000
-
Canacord Tranch 2
16-Jul-21
31-Dec-24
$0.55
10,000,000
271,703
Canacord Tranch 3
16-Jul-21
31-Dec-24
$0.55
10,000,000
545,699
Canacord Tranch 4
16-Jul-21
31-Dec-24
$0.55
5,000,000
405,762
Total
35,000,000
1,223,164
(a)
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.
(b)
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.
(c)
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.
(d)
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.
Tranche 1
Tranche 2
Tranche 3
Tranche 4
Grant date
16-July-21
16-July-21
16-July-21
16-July-21
Vesting date
14-Mar-23
28-Sep-23
21-Jan-24
22-Jun-24
Share Price at grant date
$0.385
$0.385
$0.385
$0.385
Exercise (Strike) Price
$0.55
$0.55
$0.55
$0.55
Time to Maturity (in years)
3
3
3
3
Annual Risk-Free Rate
0.15%
0.15%
0.15%
0.15%
Annualised Volatility
109.817%
109.817%
109.817%
109.817%
97
97
Lake Resources NL
Notes to the consolidated financial statements
30 June 2024
21 Employee Option, Restricted Stock Unit and Performance Stock Plan
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 management to deliver long-term shareholders returns.
Under the plan participants were granted options, performance units and restricted stock units which have various
tranche vesting terms including vesting at 25% increments on each of the first four anniversaries of the
commencement date, or a 50% vest at 3 years and a 50% vest at 4 years, or vesting in 25% increments dependant
on share price goals.
(a) Restricted stock units
Restricted stock units 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 2024 affecting remuneration of Directors and
other KMP in this financial period or reporting period are as follows:
Vesting conditions typically include:
•
Participants continuing as an employee of Lake through the applicable vesting date, where a change in control
occurs while still employed by the Company, any then un-vested RSU’s shall immediately vest. Settlement of a
share may be settled in the form of a share or cash at the sole discretion of the Board.
•
Restricted stock units granted under the plan are for no consideration and carry no dividend or voting rights.
LAKE RESOURCES ANNUAL REPORT 2024
98
Lake Resources NL
Notes to the consolidated financial statements
30 June 2024
21 Employee Option, Restricted Stock Unit and Performance Stock Plan (continued)
(a) Restricted stock units (continued)
Grant date
Vesting date
Number of units allotted
Fair value price
15-Sep-23
250,000
$0.930
15-Sep-24
250,000
$0.930
15-Sep-22
15-Sep-25
250,000
$0.930
15-Sep-26
250,000
$0.930
7-Nov-23
25,000
$1.070
7-Nov-24
25,000
$1.070
7-Nov-22
7-Nov-25
25,000
$1.070
7-Nov-26
25,000
$1.070
10-Oct-23
37,500
$1.010
10-Oct-24
37,500
$1.010
10-Oct-22
10-Oct-25
37,500
$1.010
10-Oct-26
37,500
$1.010
1-Dec-22
1-Dec-23
232,500
$1.005
2-Dec-22
2-Dec-23
232,500
$1.030
14-Nov-23
18,750
$1.070
14-Nov-24
18,750
$1.070
14-Nov-22
14-Nov-25
18,750
$1.070
14-Nov-26
18,750
$1.070
1-Jan-24
349,092
$0.800
1-Jan-25
110,592
$0.800
1-Jan-23
1-Jan-26
110,592
$0.800
1-Jan-27
110,592
$0.800
11-Jan-24
18,750
$0.840
11-Jan-25
18,750
$0.840
11-Jan-23
11-Jan-26
18,750
$0.840
11-Jan-27
18,750
$0.840
16-Jan-24
12,500
$0.825
16-Jan-25
12,500
$0.825
16-Jan-23
16-Jan-26
12,500
$0.825
16-Jan-27
12,500
$0.825
1-Feb-24
176,707
$0.815
1-Feb-25
176,707
$0.815
1-Feb-23
1-Feb-26
176,707
$0.815
1-Feb-27
176,707
$0.815
1-April-24
37,500
$0.445
1-April-25
37,500
$0.445
1-April-23
1-April-26
37,500
$0.445
1-April-27
37,500
$0.445
20-Jun-23
20-Jun-24
118,647
$0.460
20-Jun-25
118,647
$0.460
20-Jun-26
118,647
$0.460
20-Jun-27
118,647
$0.460
30-Jun-23
30-Jun-23
272,499
$0.300
11-Aug-24
37,500
$0.210
11-Aug-25
37,500
$0.210
11-Aug-23
11-Aug-26
37,500
$0.210
11-Aug-27
37,500
$0.210
99
99
Lake Resources NL
Notes to the consolidated financial statements
30 June 2024
21 Employee Option, Restricted Stock Unit and Performance Stock Plan (continued)
(a) Restricted stock units (continued)
Grant date
Vesting date
Number of units allotted
Fair value price
11-Dec-24
146,106
$0.125
11-Dec-25
146,106
$0.125
11-Dec-23
11-Dec-26
146,106
$0.125
11-Dec-27
146,106
$0.125
11-Dec-23
11-Dec-26
26,184,148
$0.130
11-Dec-27
26,184,148
$0.130
57,302,500
Several restricted stock units issued during the year vested immediately and during the year. Expenses recognised
during the year include:
Grant date
Number of RSUs
granted
Expiry date
Exercise price
Fair value at grant
date
Expensed $
15-Sept-22
1,000,000
15-Sep-26
-
$0.930
302,298
10-Oct-22
150,000
10-Oct-27
-
$0.995
-
11-Oct-22
100,000
11-Oct-27
-
$0.990
(13,231)
14-Nov-22
75,000
14-Nov-27
-
$1.180
54,156
1-Dec-22
232,500
1-Dec-23
-
$1.030
98,586
2-Dec-22
232,500
2-Dec-23
-
$1.030
101,695
1-Jan-23
680,868
1-Jan-27
-
$0.800
258,656
11-Jan-23
75,000
11-Jan-27
-
$0.835
47,442
16-Jan-23
50,000
16-Jan-27
-
$0.825
16,841
1-Feb-23
706,828
1-Feb-27
-
$0.815
241,116
1-April-23
150,000
1-April-27
-
$0.445
44,443
20-Jun-23
474,587
20-Jun-27
-
$0.305
74,467
30-Jun-23
272,499
30-Jun-23
-
$0.30
81,750
11-Aug-23
150,000
11-Aug-27
-
$0.21
15,030
11-Dec-23
52,952,718
11-Dec-27
-
$0.13
1,945,629
57,302,500
3,268,877
(b) Options
Options granted under the plan for are no consideration and carry no dividend or voting rights.
The terms and conditions of options on issue at 30 June 2024 affecting remuneration of Directors and other KMP
(Note 20 (a)(i)) and employees in this financial period or reporting period are as follows:
Vesting conditions typically include:
•
Participants continuing an employee of Lake through the applicable vesting date, where a change in control
occurs while still employed by the company, any then un-vested options shall immediately vest. Settlement of a
share may be settled in the form of a share or cash at the sole discretion of the Board.
•
Options granted under the plan are for no consideration and carry no dividend or voting rights.
LAKE RESOURCES ANNUAL REPORT 2024
100
Lake Resources NL
Notes to the consolidated financial statements
30 June 2024
21 Employee Option, Restricted Stock Unit and Performance Stock Plan (continued)
(b) Options (continued)
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 the Black-Scholes model with the following
assumptions:
•
The exercise price is based on fair value of share price at grant date;
•
The exercise price of options is based on fair value of share price on the last open day of the stock market prior
to the Commencement Date; and
•
The options have varying grant dates being the dates on which the employee commenced employment with the
Company. The offer price for each grant date has been taken as the closing price on the ASX prior to the
Commencement Date.
Expenses recognised during the year include:
Grant date
Number of options
granted
Expiry date
Exercise price
Fair value
Expensed $
20-Jul-22
1,000,000
20-Jul-25
$0.700
$0.700
-
22-Aug-22
1,000,000
22-Aug-25
$1.500
$1.500
-
15-Sept-22
4,000,000
15-Sep-27
$1.130
$1.130
934,759
10-Oct-22
500,000
10-Oct-27
$0.995
$0.995
(49,240)
11-Oct-22
300,000
11-Oct-27
$0.990
$0.990
(29,086)
14-Nov-22
75,000
14-Nov-27
$1.175
$1.175
(5,236)
21-Nov-22
50,000
21-Nov-27
$1.060
$1.060
(2,730)
1-Jan-23
809,750
1-Jan-28
$0.800
$0.800
194,491
9-Jan-23
1,000,000
9-Jan-28
$0.830
$0.840
721,874
11-Jan-23
75,000
11-Jan-28
$0.835
$0.835
371
16-Jan-23
100,000
16-Jan-28
$0.825
$0.810
26,462
1-Feb-23
1,338,656
1-Feb-28
$0.815
$0.815
307,170
1-April-23
150,000
1-April-28
$0.445
$0.445
14,941
16-Jun-23
632,762
16-Jun-28
$0.460
$0.460
163,900
11-Aug-23
75,000
16-Jun-28
$0.460
$0.460
8,023
11,106,168
2,285,699
Grant date
20-Jul-22
22-Aug-22
15-Sep-22
11-Oct-22
10-Oct-22
14-Nov-22
Vesting Date
20-Jul-22
22-Aug-22
15-Sep-26
11-Oct-26
10-Oct-27
14-Nov-26
Share Price at grant date
$0.700
$1.210
$0.925
$0.990
$0.995
$1.175
Exercise (Strike) Price
$0.700
$1.500
$1.130
$0.990
$0.995
$1.175
Time to Maturity (in years)
5
3
5
5
5
5
Annual Risk-Free Rate
3.21%
3.6%
3.79%
3.70%
3.57%
3.44%
Annualised Volatility
108.18%
109.949%
109.949%
107.70%
107.70%
107.7%
Grant date
21-Nov-22
1-Jan-23
9-Jan-23 11-Jan-23
16-Jan-23
1-Feb-23 20-Jun-23
Vesting Date
21-Nov-22
1-Jan-27
9-Jan-27 11-Jan-27
16-Jan-27
1-Feb-27 20-Jun-27
Share Price at grant date
$1.060
$0.800
$0.830
$0.835
$0.825
$0.815
$0.305
Exercise (Strike) Price
$1.060
$0.800
$0.830
$0.835
$0.825
$0.815
$0.305
Time to Maturity (in years)
5
5
5
5
5
5
5
Annual Risk-Free Rate
3.34%
3.7%
3.46%
3.46%
3.32%
3.30%
3.95%
Annualised Volatility
107.7%
106.622%
106.622% 106.622%
106.622%
106.41%
106.62%
101
101
Lake Resources NL
Notes to the consolidated financial statements
30 June 2024
21 Employee Option, Restricted Stock Unit and Performance Stock Plan (continued)
(b) Options (continued)
Grant date
1-April-23
20-Jun-23
11-Aug-23
Vesting Date
1-April-27
20-Jun-27
11-Aug-27
Share Price at grant date
$0.445
$0.305
$0.21
Exercise (Strike) Price
$0.445
$0.305
$0.21
Time to Maturity (in years)
5
5
5
Annual Risk-Free Rate
3.03%
3.95%
4.01%
Annualised Volatility
103.16%
106.62%
100.068%
(c) Performance stock units
Under the plan, participants are granted performance shares which vest in tranches based on achievement of share
price targets. These Market Based Awards Vest in 25% increments when the share price increases from $0.13 by
250%, 400%, 500%, 750%.
These Performance units have been valued using Monte Carlo simulation with the following assumptions:
1. Share price at the grant date was $0.13; and
2. While each tranche vests upon achievement of the share price target, PSU awards are subject to a minimum three
(3) year lock from the date of grant and participants will not be able to convert units into awards until completion of
the three (3) year lock.
Grant date
Expiry date
Balance at the
start of the year
No of PSUs
Granted
Converted to
Shares
No of PSUs
Forfeited
Balance at the
end of the
year
Expensed 2024
$
11-Dec-23
11-Dec-26
-
36,683,617
(2,454,578)
(712,616)
33,516,423
1,296,115
-
36,683,617
(2,454,578)
(712,616)
33,516,423
1,296,115
Grant date
11-Dec-23
Vesting Date
11-Dec-26
Share Price at grant date
$0.13
Exercise (Strike) Price
$0.000
Time to Maturity (in years)
5
Annual Risk-Free Rate
4.01%
Annualised Volatility
100.068%
22 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. These policies include identification and analysis of the
risk exposure of the Consolidated entity and appropriate procedures, controls and risk limits.
LAKE RESOURCES ANNUAL REPORT 2024
102
Lake Resources NL
Notes to the consolidated financial statements
30 June 2024
22 Financial instruments (continued)
(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 Consolidated entity's functional currency.
The Consolidated entity 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 ARG Peso on the same day. This is
to enable the Consolidated entity 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:
Assets
Liabilities
2024
$
2023
$
2024
$
2023
$
US Dollars
427,958
15,846,866
432,237
1,625,224
Pound Sterling
-
-
-
48,712
Argentina Pesos
117,624
3,058,278
118,780
1,293,078
Total
545,582
18,905,144
551,017
2,967,014
103
103
Lake Resources NL
Notes to the consolidated financial statements
30 June 2024
22 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:
AUD strengthen by 1%
AUD weaken by 1%
Impact on
Impact on
Profit before
tax
Equity
Profit before
tax
Equity
2024
$
$
$
$
USD assets
(8,790)
164,290
8,967
(161,037)
USD liabilities
(4,280)
(164,290)
4,366
161,037
GBP liabilities
-
(102,966)
-
100,927
ARS liabilities
(1,176)
(50)
1,200
50
ARS assets
(7,252)
50
7,399
(50)
Total
(21,498)
(102,966)
21,932
100,927
2023
USD assets
(156,900)
257,803
160,069
(252,698)
USD liabilities
(16,091)
(257,803)
16,416
252,698
GBP liabilities
(48,712)
(161,651)
492
158,450
ARS liabilities
(12,803)
(20)
13,061
20
ARS assets
(30,280)
20
30,891
(20)
Total
(264,786)
(161,651)
220,929
158,450
(b) Price risk
The Consolidated entity is not exposed to any significant price risk.
(c) Interest rate risk
Currently the Consolidated entity does not have any external borrowings subject to variable rates and therefore has
minimal interest rate risk.
(d) Credit risk
Generally, other receivables are written off when there is no reasonable expectation of recovery. Indicators of this
include the failure of a debtor to engage in a repayment plan, no active enforcement activity and a failure to make
contractual payments for a period greater than 1 year.
The Consolidated entity deemed its credit risk to be minimal as its financial assets are mainly cash held at financial
institutions with credit risk ratings of Aa3 (Moody’s) and AA- (Standard and Poors). The maximum exposure to credit
risk at the reporting date to recognised financial assets is the carrying amount, net of any provisions for impairment of
those assets, as disclosed in the Statement of Financial Position and Notes to the financial statements. The
Consolidated entity does not hold any collateral.
LAKE RESOURCES ANNUAL REPORT 2024
104
Lake Resources NL
Notes to the consolidated financial statements
30 June 2024
22 Financial instruments (continued)
(e) Liquidity risk
Vigilant liquidity risk management requires the Consolidated entity to maintain sufficient liquid assets (mainly cash
and cash equivalents) and available liabilities to be able to pay debts as and when they become due and payable.
The Consolidated entity manages liquidity risk by maintaining adequate cash reserves and available borrowing
facilities by continuously monitoring actual and forecast cash flows and matching the maturity profiles of financial
assets and liabilities. The Consolidated entity only deposit its cash and cash equivalent with the major banks in
Australia.
(i)
Remaining contractual maturities
The following tables detail the Consolidated entity's remaining contractual maturity for its financial instrument
liabilities. The tables have been drawn up based on the undiscounted cash flows of financial liabilities based on the
earliest date on which the financial liabilities are required to be paid. The tables include both interest and principal
cash flows disclosed as remaining contractual maturities and therefore these totals may differ from their carrying
amount in the statement of financial position.
Contractual maturities of financial
liabilities
Weighted
average
interest
rate
<1 year
1 - 2
years
2 - 5
years
> 5 years
Remaining
contractual
maturities
30 June 2024
%
$
$
$
$
$
Non-derivatives
Trade and Other payables
-
3,158,267
-
-
-
3,158,267
Lease liabilities
4.65
967,837
654,639
850,045
-
2,472,521
Total non-derivatives
4.65
4,126,104
654,639
850,045
-
5,630,788
30 June 2023
Non-derivatives
Trade and Other payables
-
10,773,518
-
-
-
10,773,518
Lease liabilities
4.65
922,131 1,314,637
856,129
-
3,092,897
Total non-derivatives
4.65
11,695,649 1,314,637
856,129
-
13,866,415
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.
105
105
Lake Resources NL
Notes to the consolidated financial statements
30 June 2024
23 Key Management Personnel disclosures
2024
$
2023
$
Directors fees and/or salary
3,215,475
3,223,029
Consulting fees
-
142,312
Annual leave
(43,083)
242,170
Short-term benefits
1,119,817
679,292
Other benefits - termination benefit
158,260
-
Total Short-term Benefits
4,450,469
4,286,803
Post-employment benefits (superannuation/severance)
909,149
102,778
Long service leave
(1,257)
2,185
Share-based payments
2,168,718
1,862,016
Total Long-term Benefits
3,076,610
1,966,979
Total Remuneration
7,527,079
6,253,782
24 Remuneration of auditors
During the financial year the following fees were paid or payable for services provided by BDO Audit Pty Ltd, the
auditor of the Consolidated entity.
(a) Audit services
2024
$
2023
$
Audit and review of financial statements
BDO Audit Pty Ltd
180,365
603,677
BDO Argentina
33,411
-
Total audit and review of financial reports
213,776
603,677
Other services
Tax compliance services
166,974
112,670
LAKE RESOURCES ANNUAL REPORT 2024
106
Lake Resources NL
Notes to the consolidated financial statements
30 June 2024
25 Related party transactions
(a) Parent entities
Lake Resources NL is the parent entity.
(b) Subsidiaries
Interests in subsidiaries are set out in Note 28.
(c) Key Management Personnel
Disclosures relating to Key Management Personnel are set out in Note 23 and the remuneration report included in the
Directors' report.
(d) Transactions with other related parties
The following transactions occurred with related parties:
2024
$
2023
$
Payment for services
Consultancy services provided by an entity associated with Amalia Saenz
(Director resigned 1 Feb 2023)
-
142,312
Receivable from and (payable to) related parties
Net advances to Mr Stephen Promnitz
-
200,000
107
107
Lake Resources NL
Notes to the consolidated financial statements
30 June 2024
26 Parent entity financial information
(a) Summary financial information
2024
$
2023
$
Statement of financial position
Current assets
151,396,109
167,445,592
Total assets
220,398,932
180,408,601
Current liabilities
1,878,012
4,157,106
Total liabilities
1,878,839
4,158,600
(368,038,190)
(339,538,487)
Shareholders' equity
Issued capital
243,870,140
229,703,797
Reserves
Options reserve
24,385,123
20,876,359
Capital profits reserve
4,997
4,997
Performance rights reserve
1,442,950
912,663
Employee Award Program reserve( Restricted Stock Units)
1,487,395
1,172,327
Accumulated losses
(117,109,044)
(76,420,142)
154,081,561
176,250,001
2024
$
2023
$
Profit or loss for the year
(40,688,902)
(53,666,765)
Total comprehensive income
(40,688,902)
(53,666,765)
(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 2024 and 30 June 2023.
(c) Contingent liabilities
The parent entity had no contingent liabilities as at 30 June 2024 and 30 June 2023.
(d) Capital commitments - Property, plant and equipment
The parent entity had no capital commitments for property, plant and equipment as at 30 June 2024 and 30 June
2023.
(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.
LAKE RESOURCES ANNUAL REPORT 2024
108
Lake Resources NL
Notes to the consolidated financial statements
30 June 2024
27 Non-controlling interests
2024
$
2023
$
Interest in:
Reserves
1,419,904
5,075,005
Name
Proportion of ownership
interest and voting rights held
by the NCI
Total comprehensive
income allocated to NCI
Accumulated NCI
30 June 2024
30 June 2023 30 June 2024 30 June 2023 30 June 2024 30 June 2023
Kachi Lithium Pty
Ltd
20%
20%
(3,655,101)
(3,389,129)
1,419,904
5,075,005
As at 30 June 2023, Lilac earned additional 10% interest in Kachi Lithium Pty (KLPL) upon completion of a key
milestone relating to Lilac test work on-site, taking the interest earned at 30 June 2023 to 20%. There have been no
changes as at 30 June 2024. Details of the relevant phases and KPI are detailed below which entitles Lilac to Class B
shares.
109
109
Lake Resources NL
Notes to the consolidated financial statements
30 June 2024
27 Non-controlling interests (continued)
Details of the key milestones are highlighted below:
Event
KPI
Status
1
Commitment
to
provide
fund
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
Achieved earned 10% stake in Kachi
Lithium Pty Ltd commitment to provide
fund
Preparation of the
Oakland Chloride Product
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
“Independent Lab”), it will have:
1. lithium content above 1 g/L;
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).
Lilac Test-Work in
Oakland to Support DFS
An Oakland Pilot Work test must demonstrate, in
each case as reported by Lilac and confirmed via
sample analysis by an Independent Lab:
2
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
Achieved KPI for production of 2,500
kg LCE in April 2023. Lilac ownership
moved from 10% to 20% of KLP at
that time (See press release from 17
April 2023).
2. production of a lithium chloride solution that is a
Lithium
Carbonate
Feed,
as
defined
in
the
specifications in 1 above.
Lilac Test-Work On-Site
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).
3
Product Qualification
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
The demonstration plant test program
has
been
completed
at
Kachi.
Acceptance of the Tier 1 Product
Qualification is ongoing. This KPI may
be
met
in
2024
as
the
strategic
partner
process
advances.
In
the
event of confirmation of Tier 1 Product
Qualification Lilac would earn a further
5% ownership stake in KLP.
LAKE RESOURCES ANNUAL REPORT 2024
110
Lake Resources NL
Notes to the consolidated financial statements
30 June 2024
27 Non-controlling interests (continued)
Summarised financial information for Kachi Lithium Pty Ltd, before intra-group eliminations, is set out below:
2024
$
2023
$
Current asset
1,169,530
7,995,496
Non-current assets
159,058,155
114,597,171
Total assets
160,227,685
122,592,667
Current liabilities
(85,105,208)
71,875,092
Non-current liabilities
(2,735,981)
151,461
Total liabilities
(87,841,189)
72,026,553
Equity attributable to owners of the parent
72,386,496
50,566,113
Non-controlling interest
(5,398,162)
6,965,205
ccc
Profit for the period attributable to owners of the parent
(22,322,934)
1,044,655
Loss for the period attributable to NCI
(1,567,044)
(1,498,928)
Profit for the year
(23,889,978)
(454,273)
Total comprehensive income for the period attributable to the owners of the parent
(32,763,222)
(8,340,036)
Total comprehensive income for the period attributable to NCI
(3,655,101)
(3,389,129)
Profit for the year
(36,418,323)
(11,729,165)
111
111
Lake Resources NL
Notes to the consolidated financial statements
30 June 2024
28 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
2024
%
2023
%
Lith NRG Pty Ltd
Australia
100
100
Minerales Australes SA
Argentina
100
100
Morena del Valle Minerals SA*
Argentina
80
80
Lake Resources CRN Pty Ltd
Australia
100
100
Kachi Lithium Pty Ltd*
Australia
80
80
Lake Corporate FL LLC**
USA
100
100
Lake Corporate Inc**
USA
100
100
*
Refer to Note 27 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, Lilac has the ability to earn up to 25% of the
ownership of KLPL.
29 Events after the reporting period
On 25 July 2024, the Company announced that it has utilised it’s ATM to raise $2,500,000 (inclusive of costs) by
agreeing to issue 65,000,000 fully paid ordinary shares to Acuity Capital.
On 26 July 2024, the Company announced the resignation of its non-executive directors (Mr. Atkins, Dr. Bo-Linn, and
Ms. Chapman) as additional measures to right-size and reduce expenditure level of the company.
In September 2024, the lease for office space in Texas has been sub-leased for the remainder of the term.
Subsequent to 30 June 2024, the Company implemented cost reduction initiatives to right-size its headcount and
expenditure level with a reduction of approximately 50% of global headcount, including six members of the
Company’s executive team, and decrease of general and administrative expenses (refer to ASX announcement 1
July 2024). These actions are in addition to the approximate 50% reduction in non-core operational and
administrative workforce announced in March 2024 (refer to ASX announcement 4 March 2024). These initiatives are
not expected to impact ongoing strategic priorities for Kachi.
No other matter or circumstance has arisen since 30 June 2024 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.
LAKE RESOURCES ANNUAL REPORT 2024
112
Lake Resources NL
Notes to the consolidated financial statements
30 June 2024
30 Cash flow information
(a) Reconciliation of loss after income tax to net cash used in operating activities
Note
2024
$
2023
$
Loss for the year
(54,022,596)
(47,253,042)
Adjustments for:
700,922
207,433
6,899,930
13,018,996
(21,720,572)
(43,696,631)
-
1,929,446
2,998,623
10,661,443
21,811,229
25,071,320
Depreciation and amortisation
Share-based payments (non cash)
Net proceeds from foreign exchange
Impairment of assets
Remeasurement of other financial asset
Unrealised gain or loss
Realised gain or loss
681,631
506,379
Change in operating assets and liabilities:
(Increase)/decrease in trade and other receivables
53,095
2,309,343
Increase in other current assets
(17,077)
(1,134,068)
Increase/(decrease) in trade and other payables
(7,505,760)
6,732,672
Increase in employee benefits
10,323,151
3,912,341
Net cash outflow from operating activities
(39,797,424)
(27,734,368)
(b) Non-cash investing and financing activities
(i)
During the year the Consolidated entity recognised the following non-cash investing and financing transactions:
2024
$
2023
$
Options issued to brokers
(1,223,164)
(3,489,696)
(ii) Reconciliation of net debt:
2024
$
2023
$
Opening balance
1,672,844
277,857
Repayments - cash
(1,258,288)
(244,767)
Lease liability on inception
1,760,931
1,456,920
Interest and finance cost
204,045
182,834
Closing balance
2,379,532
1,672,844
113
113
Lake Resources NL
Notes to the consolidated financial statements
30 June 2024
31 Commitments
(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 Consolidated entity is required to pay annual
mining fees to keep the tenement rights in good standing, the approximate annual cost is AUD$103,000.
32 Contingencies
The Consolidated entity had no contingent liabilities at 30 June 2024 (2023: nil).
LAKE RESOURCES ANNUAL REPORT 2024
114
Lake Resources NL
Consolidated Entity Disclosure Statement
as at 30 June 2024
AS AT 30 JUNE 2024
Name of entity
Type of
entity
Trustee,
partner or
participant in
JV
% of share
capital
Place of
incorporation
Australian
resident or
foreign
resident
Foreign
jurisdiction(s)
of foreign
residents
Kachi Lithium Pty
Ltd
Body
Corporate
-
80%
Australia
Australian
N/A
Lake Resources NL Body
Corporate
-
N/A
Australia
Australian
N/A
Lith NRG Pty Ltd
Body
Corporate
-
100%
Australia
Australian
N/A
Minerales Australes
SA
Body
Corporate
-
100%
Argentina
Australian
N/A
Morena del Valle
Minerals SA*
Body
Corporate
-
80%
Argentina
Australian
N/A
Lake Resources
CRN Pty Ltd
Body
Corporate
-
100%
Australia
Australian
N/A
Lake Corporate FL
LLC
Body
Corporate
-
100%
USA
Foreign
USA
Lake Corporate Inc
Body
Corporate
-
100%
USA
Foreign
USA
Lake Mining
Pakistan (Pvt)
Limited
Body
Corporate
-
100%
Pakistan
Foreign
Pakistan
* MVM is 100% owned by KLP, however, as Lake owns 80% of KLP, Lake NL economic interest is reflected.
Basis of preparation
This Consolidated Entity Disclosure Statement ("CEDS") has been prepared in accordance with the Corporations Act
2001 and includes information for each entity that was part of the consolidated entity as at the end of the financial
year in accordance with AASB 10 Consolidated Financial Statement.
Determination of tax residency
Section 295 (3A)(vi) of the Corporation Act 2001 defines tax residency as having the meaning in the Income Tax
Assessment Act 1997. The determination of tax residency involves judgement as there are different interpretations
that could be adopted, and which could give rise to a different conclusion on residency.
In determining tax residency, the Consolidated entity has applied the following interpretations:
Australian tax residency
The Consolidated entity has applied current legislation and judicial precedent, including having regard to the Tax
Commissioner's public guidance in Tax Ruling TR 2018/5.
Foreign tax residency
Where necessary, the Consolidated entity has used independent tax advisers in foreign jurisdictions to assist in its
determination of tax residency to ensure applicable foreign tax legislation has been complied with (see section
295(3A)(vii) of the Corporations Act 2001).
Partnerships and trusts
Australian tax law generally does not contain corresponding residency tests for partnerships and trusts and these
entities are typically taxed on a flow-through basis. Additional disclosures on the tax status of partnerships and trusts
have been provided where relevant.
115
115
Lake Resources NL
Directors' declaration
30 June 2024
In the Directors' opinion:
(a)
the consolidated financial statements and notes set out on pages 56 to 114 are in accordance with
the Corporations Act 2001, including:
(i)
complying with Accounting Standards, the Corporations Regulations 2001 and other mandatory
professional reporting requirements, and
(ii)
giving a true and fair view of the Consolidated entity's financial position as at 30 June 2024 and of its
performance for the financial year ended on that date.
(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, and
(c)
the Consolidated entity disclosure statement on page 115 is true and correct.
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.
S. Crow
Director
25 September 2024
LAKE RESOURCES ANNUAL REPORT 2024
116
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.
Tel: +61 7 3237 5999
Fax: +61 7 3221 9227
www.bdo.com.au
Level 10, 12 Creek Street
Brisbane QLD 4000
GPO Box 457 Brisbane QLD 4001
Australia
INDEPENDENT AUDITOR'S REPORT
To the members of Lake Resources NL
Report on the Audit of the Financial Report
Opinion
We have audited the financial report of Lake Resources NL (the Company) and its subsidiaries (the
Group), which comprises the consolidated statement of financial position as at 30 June 2024, the
consolidated statement of profit or loss and other comprehensive income, the consolidated statement
of changes in equity and the consolidated statement of cash flows for the year then ended, and notes
to the financial report, including material accounting policy information, the consolidated entity
disclosure statement and the directors’ declaration.
In our opinion the accompanying financial report of the Group, is in accordance with the Corporations
Act 2001, including:
(i)
Giving a true and fair view of the Group’s financial position as at 30 June 2024 and of its
financial performance for the year ended on that date; and
(ii)
Complying with Australian Accounting Standards and the Corporations Regulations 2001.
Basis for opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under
those standards are further described in the Auditor’s responsibilities for the audit of the Financial
Report section of our report. We are independent of the Group in accordance with the Corporations
Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board’s
APES 110 Code of Ethics for Professional Accountants (including Independence Standards) (the Code)
that are relevant to our audit of the financial report in Australia. We have also fulfilled our other
ethical responsibilities in accordance with the Code.
We confirm that the independence declaration required by the Corporations Act 2001, which has been
given to the directors of the Company, would be in the same terms if given to the directors as at the
time of this auditor’s report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our opinion.
Material uncertainty related to going concern
We draw attention to Note 1 in the financial report which describes the events and/or conditions which
give rise to the existence of a material uncertainty that may cast significant doubt about the group’s
ability to continue as a going concern and therefore the group may be unable to realise its assets and
discharge its liabilities in the normal course of business. Our opinion is not modified in respect of this
matter.
117
117
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.
Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most significance in
our audit of the financial report of the current period. These matters were addressed in the context of
our audit of the financial report as a whole, and in forming our opinion thereon, and we do not provide
a separate opinion on these matters. In addition to the matter described in the Material uncertainty
related to going concern section, we have determined the matters described below to be the key audit
matters to be communicated in our report.
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
carries exploration and evaluation assets as at 30
June 2024 in accordance with the Group’s
accounting policy for exploration and evaluation
assets.
The recoverability of exploration and evaluation
assets is a key audit matter due to the
significance of the total balance and the level of
procedures undertaken to evaluate
management’s application of the requirements
of AASB 6 Exploration for and Evaluation of
Mineral Resources (‘AASB 6’) in light of any
indicators of impairment that may be present.
Our procedures included, but were not limited to
the following:
•
Obtaining an understanding of the current
status of the tenements/project including key
activities undertaken during the period;
•
Making enquiries of management with respect
to whether any impairment indicators in
accordance with AASB 6 have been identified
across the Group’s exploration project;
•
Assessing management’s determination that
exploration activities have not yet progressed
to the point where the existence or otherwise
of an economically recoverable mineral
resource may be determined through
discussions with management and review of
ASX announcements and other relevant
documentation;
•
Reviewing capitalised exploration expenditure
during the period to ensure it meets the
recognition criteria under AASB 6; and
•
Ensuring that the group has the rights to
tenure and maintains the tenements in good
standing.
118
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.
Other information
The directors are responsible for the other information. The other information comprises the
information in the Group’s annual report for the year ended 30 June 2024, but does not include the
financial report and the auditor’s report thereon.
Our opinion on the financial report does not cover the other information and we do not express any
form of assurance conclusion thereon.
In connection with our audit of the financial report, our responsibility is to read the other information
and, in doing so, consider whether the other information is materially inconsistent with the financial
report or our knowledge obtained in the audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this
other information, we are required to report that fact. We have nothing to report in this regard.
Responsibilities of the directors for the Financial Report
The directors of the Company are responsible for the preparation of:
a)
the financial report that gives a true and fair view in accordance with Australian Accounting
Standards and the Corporations Act 2001 and
b)
the consolidated entity disclosure statement that is true and correct in accordance with the
Corporations Act 2001, and
for such internal control as the directors determine is necessary to enable the preparation of:
i) the financial report that gives a true and fair view and is free from material misstatement, whether
due to fraud or error; and
ii) the consolidated entity disclosure statement that is true and correct and is free of misstatement,
whether due to fraud or error.
In preparing the financial report, the directors are responsible for assessing the ability of the group to
continue as a going concern, disclosing, as applicable, matters related to going concern and using the
going concern basis of accounting unless the directors either intend to liquidate the Group or to cease
operations, or has no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the Financial Report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free
from material misstatement, whether due to fraud or error, and to issue an auditor’s report that
includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an
audit conducted in accordance with the Australian Auditing Standards will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are considered material
if, individually or in the aggregate, they could reasonably be expected to influence the economic
decisions of users taken on the basis of this financial report.
119
119
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.
A further description of our responsibilities for the audit of the financial report is located at the
Auditing and Assurance Standards Board website at:
https://www.auasb.gov.au/admin/file/content102/c3/ar1_2020.pdf
This description forms part of our auditor’s report.
Report on the Remuneration Report
Opinion on the Remuneration Report
We have audited the Remuneration Report included in pages 30 to 52 of the directors’ report for the
year ended 30 June 2024
In our opinion, the Remuneration Report of Lake Resources NL, for the year ended 30 June 2024
complies with section 300A of the Corporations Act 2001.
Responsibilities
The directors of the Company are responsible for the preparation and presentation of the
Remuneration Report in accordance with section 300A of the Corporations Act 2001. Our responsibility
is to express an opinion on the Remuneration Report, based on our audit conducted in accordance with
Australian Auditing Standards.
BDO Audit Pty Ltd
R M Swaby
Director
Brisbane, 25 September 2024
120
2024 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 25 September 2024 and has been approved by the Board. It is
available on the Company’s website at www.lakeresources.com.au.
ASX Principles and Recommendations
Comply
(Yes/No) Explanation
1. Lay solid foundations for management and oversight
1.1. A listed entity should have and
disclose a board charter setting out:
(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.
Yes
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 ‘Investor Hub’
section
of
the
Company’s
website
at
http://www.lakeresources.com.au.
121
121
2024 Corporate Governance Statement (continued)
ASX Principles and Recommendations
Comply
(Yes/No) Explanation
1. Lay solid foundations for management and oversight
1.2. A listed entity should:
(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
material
information
in
its
possession relevant to a decision
on whether or not to elect or re-
elect a director.
Yes
The Board has constituted a Nomination and Governance
Committee to support and advise the Board in, amongst
other
things,
undertaking
appropriate
checks
before
appointing a candidate as a director or a senior executive, or
putting forward to security holders a candidate for election as
a
director,
including
checks
in
respect
of
character,
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 security holders prior for
the AGM includes all such material information obtained by
the Company to enable security holders 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 ‘Investor Hub’ section of the
Company’s website at http://www.lakeresources.com.au.
Due to the reduction in Board size from six to three members
announced to ASX on 26 July 2024, the Company will be
considering
whether
to
dissolve
the
Nomination
and
Governance Committee for the remainder of the 2024-2025
fiscal year, in which case all duties of the Nomination and
Governance Committee would be assumed by the full
constituted Board of Directors.
1.3. A listed entity should have a written
agreement with each director and
senior
executive
setting
out
the
terms of their appointment.
Yes
The Company has written agreements in place with all
directors and senior executives setting out the terms of their
appointment.
1.4. The company secretary of a listed
entity
should
be
accountable
directly to the board, through the
chair, on all matters to do with the
proper functioning of the board.
Yes
The Board Charter provides for the Company Secretary to be
accountable directly to the Board through the Chair, on all
matters to do with the proper functioning of the Board.
LAKE RESOURCES ANNUAL REPORT 2024
122
2024 Corporate Governance Statement (continued)
ASX Principles and Recommendations
Comply
(Yes/No) Explanation
1. Lay solid foundations for management and oversight (Continued)
1.5. A listed entity should:
(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:
No
The Company has adopted a Diversity Policy which is
available in the ‘Investor Hub’ section of the Company's
website at http://www.lakeresources.com.au.
In this reporting period and during the reporting period
2022-2023, the Company had two female board members
representing 33% of the Board membership and three
female senior executives, representing 37.5% of senior
executives (3 of 8). As of the end of the reporting period,
the Company had 30 female employees representing 40%
of the total number of employees.
(1) the measurable objectives set
for that period to achieve gender
diversity
(2) the entity’s progress towards
achieving those objectives; and
(3) either:
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 security holders via the Company’s website
and outcomes following the implementation of measurable
objectives will be disclosed in its annual report.
(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.
123
123
2024 Corporate Governance Statement (continued)
ASX Principles and Recommendations
Comply
(Yes/No) Explanation
1. Lay solid foundations for management and oversight (Continued)
1.6. A listed entity should:
(a) have and disclose a process for
periodically
evaluating
the
performance
of
the
board,
its
committees and individual directors;
and
(b)
disclose
for
each
reporting
period
whether
a
performance
evaluation has been undertaken in
accordance with that process during
or in respect of that period.
Yes
The Company has a Compensation Committee which is
responsible for overseeing the annual evaluations of the
Board,
its
committees
and
individual
directors,
as
appropriate.
A copy of the Company’s Compensation Committee Charter
and Performance Evaluation Policy is available in the
‘Investor
Hub’
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
the
performance
of
that
committee.
Performance evaluations of the Board, its committees and
individual directors did take place during the reporting period.
Due to the reduction in Board size from six to three members
announced to ASX on 26 July 2024, the Company will be
considering
whether
to
dissolve
the
Compensation
Committee for the remainder of the 2024-2025 fiscal year, in
which case all duties of the Compensation Committee would
be assumed by the full constituted Board of Directors.
LAKE RESOURCES ANNUAL REPORT 2024
124
2024 Corporate Governance Statement (continued)
ASX Principles and Recommendations
Comply
(Yes/No) Explanation
1.7. A listed entity should:
(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
a
performance
evaluation has been undertaken in
accordance with that process during
or in respect of that period.
Yes
The
Company
has
a
Nomination
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.
As
above,
a
copy
of
the
Company’s
Compensation
Committee Charter and Performance Evaluation Policy is
available in the ‘Investor Hub’ 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.
Performance evaluations did take place during this reporting
period in accordance with the process disclosed in the
Company’s Performance Evaluation Policy.
Due to the reduction in Board size from six to three members
announced to ASX on 26 July 2024, the Company will be
considering
whether
to
dissolve
the
Compensation
Committee for the remainder of the 2024-2025 fiscal year, in
which case all duties of the Compensation Committee would
be assumed by the full constituted Board of Directors.
125
125
2024 Corporate Governance Statement (continued)
ASX Principles and Recommendations
Comply
(Yes/No) Explanation
2. Structure the board to be effective and add value
2.1. The board of a listed entity should:
(a) have a nomination committee
which:
Yes
The Company has constituted a Nomination and Governance
Committee which, during the reporting period, had three
members who were all independent directors, and was chaired
also
by
an
independent
director.
The
committee
was
comprised
during
the
reporting
period
of
the
following
directors:
(1) has at least three members, a
majority of whom are independent
directors; and
• Cheemin Bo Linn - Chair
• Robert Trzebski
• Ana Gomez Chapman
(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
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
Statements.
The Charter of the Nomination and Governance Committee
is available in the ‘Investor Hub’ section of the Company’s
website at http://www.lakeresources.com.au.
Due to the reduction in Board size from six to three members
announced to ASX on 26 July 2024, the Company will be
considering
whether
to
dissolve
the
Compensation
Committee for the remainder of the 2024-2025 fiscal year, in
which case all duties of the Compensation Committee would
be assumed by the full constituted Board of Directors.
(b) if it does not have a nomination
committee, disclose that fact and
the processes it employs to address
board
succession issues and
to
ensure
that
the
board
has
the
appropriate
balance
of
skills,
knowledge,
experience,
independence
and
diversity
to
enable it to discharge its duties and
responsibilities effectively.
LAKE RESOURCES ANNUAL REPORT 2024
126
2024 Corporate Governance Statement (continued)
ASX Principles and Recommendations
Comply
(Yes/No) Explanation
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
currently
has
or
is
looking
to
achieve in its membership.
Yes
During the reporting period the Company did disclose a
Board Skills Matrix. A copy of the Board Skills Matrix is
available in the ‘Investor Hub’ section of the Company’s
website at http://www.lakeresources.com.au.
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 reflects the Board's objective to have an appropriate
mix of recent and meaningful and specific industry and
professional experience, including relevant skills, experience
and expertise in key focus areas such as mineral exploration,
project
development
leadership,
governance,
strategy,
finance, risk management, Government and community
engagement and international business operations.
2.3. A listed entity should disclose:
(a)
the
names
of
the
directors
considered
by
the
board
to
be
independent directors;
(b) if a director has an interest,
position, association or relationship
of the type described in Box 2.3 but
the board is of the opinion that it
does
not
compromise
the
independence of the director, the
nature of the interest, position or
relationship
in
question
and
an
explanation of why the board is of
that opinion; and
(c) the length of service of each
director.
Yes
During the reporting period, the following is a list of directors
considered by the Board to be independent and their length
of service:
• Howard Atkins (1 year);
• Cheemin Bo-Linn (1 year);
• Ana Chapman (1 year);
• Robert Trzebski (4 years).
The Board has not been informed by any of the directors of
any
conflicts
of
interest
that
may
compromise
the
independence of that director.
2.4.
A majority of the board of a listed
entity
should
be
independent
directors.
Yes
During the reporting period, the Board had 4 independent
directors on the Board, which constitutes 66% (4/6) of the
Board being independent directors.
127
127
2024 Corporate Governance Statement (continued)
ASX Principles and Recommendations
Comply
(Yes/No) Explanation
2. Structure the board to be effective and add value (Continued)
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.
No
The Chairman, Mr Stuart Crow, is not considered at the date
of this report to be an independent director, given his tenure
during a prior reporting period as Executive Chairman. 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.
2.6. A
listed
entity
should
have
a
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.
Yes
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 are also 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.
Due to the reduction in Board size from six to three members
announced to ASX on 26 July 2024, the Company will be
considering
whether
to
dissolve
the
Compensation
Committee for the remainder of the 2024-2025 fiscal year, in
which case all duties of the Compensation Committee would
be assumed by the full constituted Board of Directors.
LAKE RESOURCES ANNUAL REPORT 2024
128
2024 Corporate Governance Statement (continued)
ASX Principles and Recommendations
Comply
(Yes/No) Explanation
3. Instill a culture of acting lawfully, ethically and responsibly
3.1. A listed entity should articulate and
disclose its values.
Yes
The Company’s Corporate Code of Conduct applies to all
Directors,
officers,
contractors,
senior
executives,
and
employees (“Staff”).
The Code of Conduct contains a set of general principles
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 Code of Conduct, they
must report such violation in accordance with the Company’s
Whistleblower Policy. 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.
A
copy
of
the
Company's
Code
of
Conduct
and
Whistleblower Policy are available in the ‘Investor Hub'
section
of
the
Company's
website
at
http://www.lakeresources.com.au.
3.2.
A listed entity should:
(a) have and disclose a code of
conduct for its directors, senior
executives and employees; and
(b) ensure that the board or a
committee of the board is informed
of any material breaches of that
code.
Yes
As outlined above, the Company has a Code of Conduct for
its directors, senior executives and employees, which is
published in the ‘Investor Hub’ section of the 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
in
accordance
with
the
Company’s
Whistleblower Policy.
3.3. A listed entity should:
(a)
have
and
disclose
a
whistleblower policy: and
(b) ensure that the board or a
committee of the board is informed
of any material incident reported
under that policy.
Yes
The Company has a formal Whistleblower Policy which is
published in the ‘Investor Hub’ 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.
3.4. A listed entity should:
(a)
have
and
disclose
an
anti-bribery and corruption policy;
and
(b) ensure that the board or a
committee of the board is informed
of any material breaches of that
policy.
Yes
The Company has a formal Anti-bribery and Corruption
Policy which is published in the ‘Investor Hub’ section of the
Company’s website at http://www.lakeresources.com.au.
The Anti-bribery and Corruption Policy provides a procedure
for the Board to be informed of any material incident reported
under the policy.
129
129
2024 Corporate Governance Statement (continued)
ASX Principles and Recommendations
Comply
(Yes/No) Explanation
4. Safeguard the integrity of corporate reports
4.1. The board of a listed entity should:
(a) have an audit committee which:
Yes
The Company has an Audit and Risk Committee which
during the reporting period had three members who were all
independent. The committee was comprised during the
reporting period of the following directors:
(1) has at least three members,
all of whom are non-executive
directors and a majority of whom
are independent directors; and
• Howard Atkins - Chair
• Cheemin Bo Linn
• Ana Gomez Chapman
(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
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 ‘Investor Hub’ section of the Company’s website at
http://www.lakeresources.com.au.
Due to the reduction in Board size from six to three members
announced to ASX on 26 July 2024, the Company will be
considering
whether
to
dissolve
the
Audit
and
Risk
Committee for the remainder of the 2024-2025 fiscal year, in
which case all duties of the Audit and Risk Committee would
be assumed by the full constituted Board of Directors.
(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.
LAKE RESOURCES ANNUAL REPORT 2024
130
2024 Corporate Governance Statement (continued)
ASX Principles and Recommendations
Comply
(Yes/No) Explanation
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
entity
have
been
properly
maintained and that the financial
statements
comply
with
the
appropriate
accounting
standards
and give a true and fair view of the
financial position and performance
of the entity and that the opinion
has been formed on the basis of a
sound system of risk management
and
internal
control
which
is
operating effectively.
Yes
Before
the
Board
approved
the
Company’s
financial
statements for the year ended 30 June 2024, it received
declarations from the Chief Executive Officer and Chief
Financial
Officer
that,
in
their
opinion,
the
financial
statements comply with the relevant accounting standards,
give a true and fair view of the Company’s financial position
as at 30 June 2024, and there are reasonable grounds to
believe that the company will be able to pay its debts as and
when they become due and payable.
The declarations are available in the ‘Directors’ Declaration’
section in the Company’s annual report.
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
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 ‘Investor Hub’ section of the Company’s website at
http://www.lakeresources.com.au.
5. Make timely and balanced disclosure
5.1. A listed entity should have and
disclose
a
written
policy
for
complying
with
its
continuous
disclosure obligations under listing
rule 3.1.
Yes
The Company has a Continuous Disclosure Policy which is
available in the ‘Investor Hub’ section of the Company’s
website at http://www.lakeresources.com.au.
5.2. A listed entity should ensure that its
board receives copies of all material
market
announcements
promptly
after they have been made.
Yes
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.
5.3. A listed entity that gives a new and
substantive
investor
or
analyst
presentation should release a copy
of the presentation materials on the
ASX
Market
Announcements
Platform ahead of the presentation.
Yes
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
‘Investor Hub’ section at http://www.lakeresources.com.au
when released.
131
131
2024 Corporate Governance Statement (continued)
ASX Principles and Recommendations
Comply
(Yes/No) Explanation
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.
Yes
The
Company
maintains
a
website
containing
comprehensive information on the Company including a
company
profile,
corporate
strategy,
policy
statements
including corporate governance, Board of Directors, and
contact information.
All the Company’s quarterly, half year and annual reports
and other disclosures are available on the Company website
in
the
‘Investor
Hub’
section
at
http://www.lakeresources.com.au.
6.2. A
listed
entity
should
have
an
investor
relations
program
that
facilitates
effective
two-way
communication with investors
Yes
The Company complies with this recommendation and
communicates with security holders via releases to the
market
on
the
ASX
platform,
through
the
Company’s
website, by information provided directly to security holders
at webinar briefing meetings open to all security holders and
the public, and at general meetings. The Company also has
employees
who
facilitate
enquiries
from
investors
and
facilitate
an
effective
two-way
communication
with
the
Company’s investors.
6.3. A listed entity should disclose how it
facilitates
and
encourages
participation at meetings of security
holders.
Yes
The Company encourages security holders 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 security holders at webinar
briefing meetings open to all security holders 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.
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.
Yes
All resolutions at general meetings are decided by a poll.
6.5. A listed entity should give security
holders
the
option
to
receive
communications
from,
and
send
communications to, the entity and
its security registry electronically.
Yes
The Company provides all security holders with the option to
receive communications electronically.
LAKE RESOURCES ANNUAL REPORT 2024
132
2024 Corporate Governance Statement (continued)
ASX Principles and Recommendations
Comply
(Yes/No) Explanation
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:
Yes
The Company had an Audit and Risk Committee during the
reporting period which had three members who were all
independent. Details of the members and experience of the
Committee are set out at 4.1 above.
(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
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 ‘Investor Hub’ section of on the Company’s website at
http://www.lakeresources.com.au.
Due to the reduction in Board size from six to three members
announced to ASX on 26 July 2024, the Company will be
considering
whether
to
dissolve
the
Audit
and
Risk
Committee for the remainder of the 2024-2025 fiscal year, in
which case all duties of the Audit and Risk Committee would
be assumed by the full constituted Board of Directors.
(b)
if
it
does
not
have
a
risk
committee
or
committees
that
satisfy (a) above, disclose that fact
and the processes it employs for
overseeing
the
entity’s
risk
management framework.
133
133
2024 Corporate Governance Statement (continued)
ASX Principles and Recommendations
Comply
(Yes/No) Explanation
7. Recognise and manage risk (Continued)
7.2. The board or a committee of the
board should:
(a)
review
the
entity’s
risk
management
framework
at
least
annually
to
satisfy
itself
that
it
continues to be sound and that the
entity is operating with due regard
to the risk appetite set by the board;
and
(b)
disclose
in
relation
to
each
reporting period, whether such a
review has taken place.
Yes
During the reporting period, the Company and the Audit and
Risk Committee undertook a comprehensive review of its risk
management practices and implemented 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,
focusing
on
risk
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.
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 and in the Kachi Project
Definitive Feasibility Study.
7.3. A listed entity should disclose:
(a)
if
it
has
an
internal
audit
function,
how
the
function
is
structured and what role it performs;
or
(b) if it does not have an internal
audit function, that fact and the
processes it employs for evaluating
and
continually
improving
the
effectiveness of its governance, risk
management and internal control
processes.
Yes
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 and full Board monitors the
need for an internal audit function on an ongoing basis, and
will implement as and when they deem the Company
required it.
The Company’s management periodically undertakes an
internal review of 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.
Due to the reduction in Board size from six to three members
announced to ASX on 26 July 2024, the Company will be
considering
whether
to
dissolve
the
Audit
and
Risk
Committee for the remainder of the 2024-2025 fiscal year, in
which case all duties of the Audit and Risk Committee would
be assumed by the full constituted Board of Directors.
LAKE RESOURCES ANNUAL REPORT 2024
134
2024 Corporate Governance Statement (continued)
ASX Principles and Recommendations
Comply
(Yes/No) Explanation
7. Recognise and manage risk (Continued)
7.4. A
listed
entity
should
disclose
whether
it
has
any
material
exposure to environmental or social
risks and, if it does, how it manages
or intends to manage those risks.
Yes
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
Code of Conduct outlines the Company’s commitment to
integrity and fair dealing in its business affairs and to a duty
of care to all employees, clients, and stakeholders. The Code
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
135
2024 Corporate Governance Statement (continued)
ASX Principles and Recommendations
Comply
(Yes/No) Explanation
8. Remunerate fairly and responsibly
8.1. The Board of a listed entity should:
(a) have a remuneration committee
which:
Yes
The
Company
during
the
reporting
period
had
a
Compensation Committee which had three members who
were all independent. The committee was comprised of the
following directors:
(1) has at least three members, a
majority of whom are independent
directors; and
• Robert Trzebski - Chair
• Howard Atkins
• Cheemin Bo Linn
(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
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 Compensation Committee is available in
the ‘Investor Hub’ section of the Company’s website at
http://www.lakeresources.com.au.
Due to the reduction in Board size from six to three members
announced to ASX on 26 July 2024, the Company will be
considering
whether
to
dissolve
the
Compensation
Committee for the remainder of the 2024-2025 fiscal year, in
which case all duties of the Compensation Committee would
be assumed by the full constituted Board of Directors.
(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.
8.2. A listed entity should separately
disclose its policies and practices
regarding the remuneration of non-
executive
directors
and
the
remuneration of executive directors
and other senior executives.
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
‘Investor
Hub’
section
of
the
Company’s
website
at
http://www.lakeresources.com.au.
LAKE RESOURCES ANNUAL REPORT 2024
136
2024 Corporate Governance Statement (continued)
ASX Principles and Recommendations
Comply
(Yes/No) Explanation
8. Remunerate fairly and responsibly (Continued)
8.3. A listed entity which has an equity-
based
remuneration
scheme
should:
(a)
have
a
policy
on
whether
participants are permitted to enter
into transactions (whether through
the use of derivatives or otherwise)
which limit the economic risk of
participating in the scheme; and
(b)
disclose
that
policy
or
a
summary of it.
Yes
The Company’s Trading Policy and the Corporations Act
prohibit Key Management Personnel and a closely related
party of Key Management Personnel from entering an
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 ‘Investor
Hub’
section
of
the
Company’s
website
at
http://www.lakeresources.com.au.
9. Additional recommendations that apply only in certain cases
9.1. A listed entity with a director who
does not speak the language in
which
board
or
security
holder
meetings are held or key corporate
documents
are
written
should
disclose the processes it has in
place
to
ensure
the
director
understands and can contribute to
the discussions at those meetings
and understands and can discharge
their obligations in relation to those
documents.
N/A
9.2.
A listed entity established outside
Australia
should
ensure
that
meetings of security holders are
held at a reasonable place and
time.
N/A
9.3. A listed entity established outside
Australia
and
an
externally
managed listed entity that has an
AGM, should ensure that is external
auditor
attends its
AGM
and
is
available to answer questions from
security
holders
relevant
to
the
audit.
N/A
137
137
LAKE RESOURCES ANNUAL REPORT 2024
138
ADDITIONAL ASX INFORMATION
Top holders grouped report
Lake Resources N.L.
Security class:
LKE - Ordinary Shares
As at date:
18-September-2024
Position
Holder Name
Holding
% IC
1
US REGISTER CONTROL A/C
119,749,944
7.18%
2
CITICORP NOMINEES PTY LIMITED
114,404,673
6.86%
3
J P MORGAN NOMINEES AUSTRLALIA PTY LIMITED
51,841,604
3.11%
4
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
35,383,419
2.12%
5
BNP PARIBAS NOMINEES PTY LTD
21,159,770
1.27%
6
BNP PARIBAS NOMINEES PTY LTD
16,298,835
0.98%
7
FINCLEAR SERVICES PTY LTD
15,569,744
0.93%
8
LUCKY DRAGON PROPERTY PTY LTD
15,568,781
0.93%
9
HAWKSBURN CAPITAL PTE LTD
15,097,590
0.90%
10
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED - A/C 2
11,071,582
0.66%
11
SYDNEY BUSINESS ADVISERS PTY LTD
10,680,000
0.64%
12
MR RICHARD KARL HILL
10,000,000
0.60%
13
MR ZIJIANG YANG
9,115,000
0.55%
14
SHARESIES AUSTRALIA NOMINEE PTY LIMITED
8,531,777
0.51%
15
MR DEYUN HUA
7,950,000
0.48%
16
BNP PARIBAS NOMS PTY LTD
7,547,385
0.45%
17
PARADISE MARINE PTY LTD
6,512,523
0.39%
18
MR DAMIAN ARTHUR FURNELL
6,328,676
0.38%
19
MR DANIEL RUBEN BONAFEDE
6,234,634
0.37%
20
FLUID INVESTMENTS PTY LTD
5,150,000
0.31%
Total
494,195,937
29.62%
Total issued capital - selected security class(es)
1,668,520,828
100.00%
139
139
Holdings Range Report
Lake Resources N.L.
Security Class:
LKE - Ordinary Shares
As at Date:
18-September-2024
Price per security: $0.043
Holding Ranges
Holders
Total Units
% Issued Share Capital
above 0 up to and including 1,000
6,405
3,961,157
0.24%
above 1,000 up to and including 5,000
11,163
29,479,084
1.77%
above 5,000 up to and including 10,000
4,963
38,108,959
2.28%
above 10,000 up to and including 100,000
9,290
309,822,020
18.57%
above 100,000
2,165
1,287,149,608
77.14%
Totals
33,986
1,668,520,828
100.00%
Based on the price per security, the number of holders with an unmarketable holding included 23,181, with total holders of
78,577,258 Ordinary Shares, amounting to 4.71% of Issued Capital.
Class of shares and voting rights
At meetings of members or classes of members, each member that is entitled to vote may vote in person or by proxy or attorney.
On a show of hands, every person present who is a member has one vote, and on a poll, every person present 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.
Unlisted securities
Refer also to the other ASX Information regarding Unlisted Securities. Unlisted Securities have no voting rights.
LAKE RESOURCES ANNUAL REPORT 2024
140
Unlisted Securities
As at 18 September 2024
OPT @ $1.48 EXP
19/01/25
OPT @ $1.42 EXP
26/04/25
OPT @ $0.75 EXP
15/06/25
OPT @ $0.565 EXP
25/10/24
Range
Holders
Total Units
Holders
Total Units
Holders
Total Units
Holders
Total Units
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
-
-
-
-
-
-
10
487,500
above 100,000
1
1,000,000
2
2,072,244
3
5,550,000
12
12,683,459
Totals
1
1,000,000
2
2,072,244
3
5,550,000
1
13,170,959
Holders with > 20%
MR MATTHEW BONNER
1,260,000
MR GEOFFREY STUART CROW
DAVID DICKSON
GKB VENTURES LTD
1,036,122
SEAN MILLER
PETER NEILSEN
1,000,000
GAUTAM PARIMOO
4,000,000
ROBWARD PTY LTD
SD CAPITAL ADVISORY
1,036,122
MR EDWARD ARYEH SUGAR
4,010,000
Totals
1,000,000
2,072,244
5,550,000
4,000,000
141
OPT @ $1.42 EXP 26/04/2025
OPT @ $1.00 EXP 24/10/2025
Performance Shares
Employee Awards Plan -
Performance Stock Units
Holders
Total Units
Holders
Total Units
Holders
Total Units
Holders
Total Units
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
11
21,321,671
2
3,000,000
1
165,290
20
19,760,625
11
21,321,671
2
3,000,000
1
165,290
20
19,760,625
1,500,000
165,290
1,500,000
Nil
3,000,000
165,290
Nil
LAKE RESOURCES ANNUAL REPORT 2024
142
RESOURCE ESTIMATES AND GOVERNANCE
A summary of the results of Lake’s annual review of its mineral resource estimates appears in Table 1 and Ore Reserves are
presented in Table 3 in the Review of Operations. Governance of Lake’s mineral resource and reserve estimates and the estimation
process is a key responsibility of Lake’s management team, who have ensured that its mineral resources and reserve estimates
are subject to appropriate levels of governance and internal controls.
This includes procuring verification by a Competent Person of the mineral resource and reserve 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 and Ore Reserves 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 both a
mineral resource update released and made available on the Company’s website and on the ASX on November 22, 2023 and Ore
Reserve Statement on December 19, 2023, respectively. Lake confirms it is not aware of any new information or data that materially
affects the information included in the DFS dated December 19, 2023 and the end of financial year balance date. However, positive
drilling and testing results from hole K25D44 were released on February 12, 2024, which are expected to further improve resource
estimates, Otherwise, 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 and the maiden
ore reserve statement for the Kachi Project, were verified by Mr. Andy Fulton. 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 2024, Mr. Andrew Fulton visited the Kachi Project on two 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.
143
TOTAL NUMBER OF RESOURCES: 125
KACHI - ANTOFAGASTA DE LA SIERRA.- CATAMARCA
TENEMENT NA
NUMBER - GDE
AREA H
INTEREST
PROVINCE
STATUS
MINING
CONCESSION
MARIA I
EX - 2021 - 00362285 - CAT
(140/2018)
1260.0736
100
CATAMARCA
GRANTED
15/11/2018
MARIA II
EX - 2021 - 00373528 - CAT
(14/2016)
546.9333
100
CATAMARCA
GRANTED
24/8/2017
MARIA III
EX - 2021 - 00293511 – CAT
(15/2016)
834.7969
100
CATAMARCA
GRANTED
24/8/2017
KACHI INCA
EX - 2021 - 00361579 - CAT
(13/2016)
857.7131
100
CATAMARCA
GRANTED
24/8/2017
KACHI INCA I
EX - 2021 - 00432837 – CAT
(16/2016)
2880.4365
100
CATAMARCA
GRANTED
24/8/2017
KACHI INCA II
EX - 2021 - 00221521 – CAT
(17/2016)
2822.7403
100
CATAMARCA
GRANTED
24/8/2017
KACHI INCA III
EX - 2121 - 00321200 – CAT
(47/2016)
3355.3649
100
CATAMARCA
GRANTED
24/8/2016
KACHI INCA V
EX - 2021 - 00208240 – CAT
(45/2016)
305.1754
100
CATAMARCA
GRANTED
10/10/2017
KACHI INCA VI
EX - 2021 - 00294250 – CAT
(44/2016)
109.787
100
CATAMARCA
GRANTED
24/8/2016
DANIEL ARMANDO
EX - 2021 - 00208733 - CAT
(23/2016)
3121.876
100
CATAMARCA
GRANTED
24/8/2017
DANIEL ARMANDO
II
EX - 2021 - 00331263 – CAT
(97/2016)
1589.664
100
CATAMARCA
GRANTED
7/10/2016
MORENA 1
EX - 2021 - 00328638 – CAT
(72/2016)
3024.4662
100
CATAMARCA
GRANTED
7/10/2016
MORENA 2
EX - 2021 - 00390312 – CAT
(73/2016)
2989.429
100
CATAMARCA
GRANTED
7/10/2016
MORENA 3
EX - 2021 - 00361695 – CAT
(74/2016)
3007.1366
100
CATAMARCA
GRANTED
7/10/2016
MORENA 4
EX - 2021 - 00293790 – CAT
(29/2019)
2967.6745
100
CATAMARCA
GRANTED
18/9/2019
MORENA 5
EX - 2021 - 00221381 – CAT
(97/2017)
1415.8752
100
CATAMARCA
GRANTED
29/11/2019
MORENA 6
EX - 2021 - 00208283 – CAT
(75/2016)
1606.1445
100
CATAMARCA
GRANTED
7/10/2016
MORENA 7
EX - 2021 - 00259078 – CAT
(76/2016)
2804.9561
100
CATAMARCA
GRANTED
7/10/2016
MORENA 8
EX - 2021 - 00294310 - CAT
(77/2016)
2961.0131
100
CATAMARCA
GRANTED
7/10/2016
MORENA 9
EX - 2021 - 00368898 – CAT
(30/2019)
2821.5762
100
CATAMARCA
GRANTED
29/11/2019
MORENA 10
EX - 2022 - 00508476 - CAT
2712.9283
100
CATAMARCA
APPLICATION
MORENA 12
EX - 2021 - 00259022 – CAT
(78/2016)
2703.6817
100
CATAMARCA
GRANTED
7/10/2016
MORENA 13
EX - 2021 - 00258895 – CAT
(79/2016)
3024.4662
100
CATAMARCA
GRANTED
7/10/2016
SCHEDULE OF TENEMENTS - CATAMARCA - JUJUY
LAKE RESOURCES ANNUAL REPORT 2024
144
TENEMENT NA
NUMBER - GDE
AREA H
INTEREST
PROVINCE
STATUS
MINING
CONCESSION
MORENA 15
EX - 2021 - 00360876 – CAT
(162/2017)
2559.0852
100
CATAMARCA
GRANTED
30/8/2018
PAMPA I
EX - 2021 - 00233741 – CAT
(129/2013)
690
100
CATAMARCA
GRANTED
24/11/2016
PAMPA II
EX - 2021 - 00430058 -CAT
(128/2013)
1053.15
100
CATAMARCA
GRANTED
8/2/2016
PAMPA III
EX - 2021 - 00429001 - CAT
(130/2013)
477.32
100
CATAMARCA
GRANTED
12/12/222
PAMPA 11
EX - 2021 - 00372498 – CAT
(201/2018)
815
100
CATAMARCA
GRANTED
7/2/2020
PAMPA IV
EX - 2021 - 00322433 – CAT
(78/2017)
2569.3125
100
CATAMARCA
GRANTED
22/3/2018
IRENE
EX - 2021 - 00212993 – CAT
(28/2018)
2052.2562
100
CATAMARCA
GRANTED
6/9/2018
PARAPETO 1
EX - 2021 - 01648141 – CAT
(133/2018)
2280.5717
100
CATAMARCA
GRANTED
24/9/2018
PARAPETO 2
EX - 2021 - 00235750 – CAT
(134/2018)
1729.716
100
CATAMARCA
GRANTED
24/9/2018
PARAPETO 3
EX - 2121 - 00261195 – CAT
(132/2018)
1891.5621
100
CATAMARCA
GRANTED
28/11/2018
PARAPETO III
EX - 2021 - 00854749 – CAT
1949.1255
100
CATAMARCA
GRANTED
23/8/2022
PARAPETO 4
EX - 2021 - 01651926 – CAT
1948.9079
100
CATAMARCA
GRANTED
23/8/2022
GOLD SAND I
EX - 2021 - 00376209 – CAT
(238/2018)
853.602
100
CATAMARCA
GRANTED
24/4/2019
TORNADO VII
EX - 2021 - 00208328 – CAT
(48/2016)
6628.842
100
CATAMARCA
GRANTED
24/11/2016
DEBBIE I
EX - 2021 - 00196977 – CAT
(21/2016)
1742.85
100
CATAMARCA
GRANTED
24/8/2017
DOÑA CARMEN
EX - 2021 - 00321876 – CAT
(24/2016)
873.1146
100
CATAMARCA
GRANTED
24/8/2017
DIVINA VICTORIA I
EX - 2021 - 00368383 – CAT
(25/2016)
2420.1
100
CATAMARCA
GRANTED
24/8/2017
DOÑA AMPARO I
EX - 2021 - 00294138 – CAT
(22/2016)
2695.2986
100
CATAMARCA
GRANTED
24/8/2017
ESCONDIDITA
EX - 2021 - 00143141 – CAT
(131/2018)
373.4346
100
CATAMARCA
GRANTED
24/9/2018
GALAN OESTE
EX - 2021 - 00153718 – CAT
(43/2016)
3166.9356
100
CATAMARCA
GRANTED
14/10/2016
MARIA LUZ
EX - 2021 - 00153678 – CAT
(34/2017)
2424.9638
100
CATAMARCA
GRANTED
27/3/2018
NINA
EX - 2021 - 00360751 – CAT
(106/2020)
3125.0644
100
CATAMARCA
GRANTED
26/10/2021
PADRE JOSE MARIA I
EX - 2021 - 00432843 – CAT
(95/2012)
650.0094
100
CATAMARCA
GRANTED
29/1/2021
PADRE JOSE MARIA II
EX - 2021 - 00432950 -CAT
(96/2012)
1523.1476
100
CATAMARCA
GRANTED
29/1/2021
PADRE JOSE MARIA III
EX - 2021 - 00433095 – CAT
(94/2012)
1523.1476
100
CATAMARCA
GRANTED
29/1/2021
PADRE JOSE MARIA IV
EX - 2021 - 00433149 – CAT
(93/2012)
1528.6905
100
CATAMARCA
GRANTED
29/1/2021
PADRE JOSE MARIA V
EX - 2021 - 00647090 – CAT
(92/2012)
1584.3384
100
CATAMARCA
GRANTED
29/1/2021
145
TENEMENT NA
NUMBER - GDE
AREA H
INTEREST
PROVINCE
STATUS
MINING
CONCESSION
PADRE JOSE MARIA VI
EX - 2021 - 00647273 – CAT
(91/2012)
1507.3002
100
CATAMARCA
GRANTED
29/1/2021
PADRE JOSE MARIA
VII
EX - 2021 - 00647377 – CAT
(90/2012)
1499.7985
100
CATAMARCA
GRANTED
29/1/2021
PADRE JOSE MARIA
VIII
EX - 2021 - 00647631 – CAT
(89/2012)
515.0332
100
CATAMARCA
GRANTED
29/1/2021
TOTAL HECTAREAS:
105953.06
ANCASTI - CATAMARCA
TENEMENT NA
NUMBER - GDE
AREA H
INTEREST
PROVINCE
STATUS
MINING
CONCESSION
PETRA II
EX - 2021 - 00145689 - CAT
(51/2016)
9499.45
100
CATAMARCA
CATEO
GRANTED
31/03/2017
PETRA III
EX - 2021 - 00145810 - CAT
(49/2016)
9528.04
100
CATAMARCA
CATEO
GRANTED
17/08/2017
CATEO 2
EX - 2021 - 00145782 - CAT
(94/2016)
7699.22
100
CATAMARCA
CATEO
GRANTED
17/05/2017
CATEO 4
EX - 2021 - 00145516 - CAT
(98/2016)
9849.57
100
CATAMARCA
CATEO
GRANTED
17/05/2017
LA AGUADA 1
EX - 2021 - 00145356 - CAT
(116/2016)
2498.51
100
CATAMARCA
MINE
GRANTED
17/04/2017
LA AGUADA 2
EX - 2021 - 00145468 - CAT
(117/2016)
2949.66
100
CATAMARCA
MINE
GRANTED
17/04/2017
LA AGUADA 4
EX - 2021 - 00145863 - CAT
(173/2016)
2928.54
100
CATAMARCA
MINE
GRANTED
9/11/2017
LA AGUADA 5
EX - 2021 - 00145839 - CAT
(172/2016)
2866.15
100
CATAMARCA
MINE
GRANTED
9/11/2017
LA AGUADA 6
EX - 2021 - 00145928 - CAT
(174/2016)
2999.15
100
CATAMARCA
MINE
GRANTED
9/11/2017
LA AGUADA 7
EX - 2021 - 00169048 - CAT
(137/2016)
2919.48
100
CATAMARCA
MINE
GRANTED
14/06/2018
LA AGUADA 8
EX - 2021 - 00168791 - CAT
(139/2016)
1731.72
100
CATAMARCA
MINE
GRANTED
14/06/2018
LA HERENCIA 1
EX - 2024 - 00624962 – CAT
3000.00
100
CATAMARCA
APPLICATION
LA HERENCIA 2
EX - 2024 - 00625035 – CAT
3000.00
100
CATAMARCA
APPLICATION
LA HERENCIA 3
EX - 2024 - 00624819 – CAT
3000.00
100
CATAMARCA
APPLICATION
LA HERENCIA 4
EX - 2024 - 00624890 – CAT
502.00
100
CATAMARCA
APPLICATION
LA HERENCIA 5
EX - 2024 - 00885309 – CAT
3036.73
100
CATAMARCA
APPLICATION
LA HERENCIA 6
EX - 2024 - 00885613 – CAT
3107.11
100
CATAMARCA
APPLICATION
LA HERENCIA 7
EX - 2024 - 00885954 – CAT
2929.76
100
CATAMARCA
APPLICATION
LA HERENCIA 8
EX - 2024 - 01031333 – CAT
3000.00
100
CATAMARCA
APPLICATION
LA HERENCIA 9
EX - 2024 - 01031427 – CAT
3000.00
100
CATAMARCA
APPLICATION
LA HERENCIA 10
EX - 2024 - 01031713 – CAT
3000.00
100
CATAMARCA
APPLICATION
LAKE RESOURCES ANNUAL REPORT 2024
146
TENEMENT NA
NUMBER - GDE
AREA H
INTEREST
PROVINCE
STATUS
MINING
CONCESSION
LA HERENCIA 11
EX - 2024 - 01031820 - CAT
838.00
100
CATAMARCA
APPLICATION
LA HERENCIA 12
EX -2024 - 01399303 – CAT
3000.00
100
CATAMARCA
APPLICATION
LA HERENCIA 13
EX - 2024- 01399436 – CAT
2938.64
100
CATAMARCA
APPLICATION
LA HERENCIA 14
EX - 2024 - 01399570 - CAT
3000.00
100
CATAMARCA
APPLICATION
TOTAL HECTAREAS
92821.72
OLAROZ - JUJUY
TENEMENT NA
NUMBER - GDE
AREA H
INTEREST
PROVINCE
STATUS
MINING
CONCESSION
OLAROZ EAST II
2168-D-2016
2072.47
100
JUJUY
GRANTED
7/09/2023
MASA 12
2234-M-2016
2901.10
100
JUJUY
GRANTED
14/04/2023
MASA 13
2235-M-2016
2995.95
100
JUJUY
GRANTED
20/03/2023
MASA 14
2236-M-2016
2995.85
100
JUJUY
GRANTED
14/04/2023
MASA 15
2237-M-2016
3000.00
100
JUJUY
GRANTED
12/10/2021
MASA 24
2743-M-2021
899.79
100
JUJUY
APPLICATION
MASA 25
2820-M-2021
121.96
100
JUJUY
APPLICATION
MASA 26
2815-M-2021
2169.34
100
JUJUY
APPLICATION
MASA 27
2819-M-2021
2894.36
100
JUJUY
APPLICATION
MASA 28
2818-M-2021
2410.00
100
JUJUY
APPLICATION
MASA 29
2822-M-2021
2375.56
100
JUJUY
APPLICATION
MASA 30
2821-M-2021
2391.24
100
JUJUY
APPLICATION
MASA 31
2816-M-2021
2261.65
100
JUJUY
APPLICATION
MASA 32
2823-M-2021
2261.41
100
JUJUY
APPLICATION
MASA 33
2824-M-2021
2277.01
100
JUJUY
APPLICATION
MASA 34
2814-M-2021
2234.46
100
JUJUY
APPLICATION
MASA 35
2825-M-2021
2258.70
100
JUJUY
APPLICATION
MASA 36
2826-M-2021
2260.75
100
JUJUY
APPLICATION
MASA 37
2827-M-2021
2260.73
100
JUJUY
APPLICATION
MASA 38
2817-M-2021
2260.72
100
JUJUY
APPLICATION
TOTAL HECTAREAS
45303.05
147
CAUCHARI - JUJUY
TENEMENT NA
NUMBER - GDE
AREA H
INTEREST
PROVINCE
STATUS
MINING
CONCESSION
CAUCHARI BAJO I
2156-D-2016
374.8
100
JUJUY
APPLICATION
CAUCHARI BAJO II
2157-D-2016
363.1
100
JUJUY
APPLICATION
CAUCHARI BAJO III
2158-D-2016
125.3
100
JUJUY
APPLICATION
CAUCHARI BAJO V
2154-D-2016
952.1
100
JUJUY
APPLICATION
CAUCHARI WEST I
2160-D-2016
1936.5
100
JUJUY
GRANTED
8/10/2019
MASA 39
2828-M-2021
1749.1
100
JUJUY
APPLICATION
TOTAL HECTAREAS
5500.9
JAMA - JUJUY
TENEMENT NA
NUMBER - GDE
AREA H
INTEREST
PROVINCE
STATUS
MINING
CONCESSION
MASA 9
2231-M-2016
3378,52
100
JUJUY
GRANTED
24/4/2024
MASA 16
2238-M-2016
2113.65
100
JUJUY
GRANTED
30/06/2022
MASA 17
2239-M-2016
2890.85
100
JUJUY
GRANTED
1/02/2023
MASA 18
2240-M-2016
3000.00
100
JUJUY
GRANTED
19/10/2023
MASA 19
2241-M-2016
3000.00
100
JUJUY
GRANTED
19/10/2023
MASA 20
2242-M-2016
2999.74
100
JUJUY
GRANTED
1/02/2023
MASA 21
2243-M-2016
3000.00
100
JUJUY
APPLICATION
MASA 22
2244-M-2016
1608.21
100
JUJUY
GRANTED
30/6/2022
MASA 23
2245-M-2016
1491.79
100
JUJUY
GRANTED
29/07/2022
MASA 40
2911-M-2022
2999.07
100
JUJUY
APPLICATION
MASA 41
2912-M-2022
2999.07
100
JUJUY
APPLICATION
MASA 42
2913-M-2022
2999.02
100
JUJUY
APPLICATION
MASA 43
2914-M-2022
2848.50
100
JUJUY
APPLICATION
MASA 44
2915-M-2022
2492.78
100
JUJUY
APPLICATION
MASA 45
2916-M-2022
2975.88
100
JUJUY
APPLICATION
MASA 46
2917-M-2022
2965.15
100
JUJUY
APPLICATION
MASA 47
2918-M-2022
2783.14
100
JUJUY
APPLICATION
MASA 48
2961-M-2022
892.24
100
JUJUY
APPLICATION
PASO III
2137-P-2016
2787.51
100
JUJUY
GRANTED
19/10/2023
PASOVI
2140-P-2016
2208.25
100
JUJUY
GRANTED
26/10/2023
PASO X
2144-P-2016
1833.31
100
JUJUY
GRANTED
26/10/2023
TOTAL HECTAREAS
50888.16
148
LAKE RESOURCES ANNUAL REPORT 2024
149
149
lakeresources.com.au
LAKE RESOURCES N.L.
Level 5, 126 Phillip Street
Sydney NSW 2000
T: +61 2 9299 9690
E: hello@lakeresources.com.au