Annual Report 2022
Sustainable
Chemicals
for the Future
A heartfelt thank you...
...to all members of the Lepidico team
for your considerable contributions and
dedication over the past year. Business
conditions continued to be challenged by
the COVID-19 pandemic and its aftermath,
but despite this your efforts have allowed us
to drive forward and progress our strategy
to become a sustainable lithium producer.
Particular thanks to Peter Walker, General
Manager Projects, who has shown
exceptional leadership, skill and tenacity
in progressing our Phase 1 Project – along
with the proprietary process technologies
it employs – from pre-feasibility in 2016
to advanced front-end engineering and
design in mid-2022. On 1 September 2022
Peter handed the Phase 1 reins to new
Project Director, Roly Wells – welcome
– to take Phase 1 into construction from
his base in Brisbane, where he is best
placed to oversee detailed design. We
have also welcomed three other new
General Managers to Lepidico in 2022,
Benedicta, Hans and Timo. We look forward
to continuing to work with Peter, who has
transitioned into the part-time largely
governance role of Technical Advisor.
Contents
Highlights .................................................................................. 2
Chair’s & Managing Director’s Letter ................................ 6
Lithium Industry & Market .................................................... 8
Project Development .......................................................... 10
Technology Development ..................................................13
Business Development ........................................................15
Resources, Reserves & Exploration ................................. 17
Board of Directors & Company Secretaries ............... 22
Management .......................................................................... 23
Sustainability .......................................................................... 25
Corporate Governance Statement ................................ 37
Financial Report ....................................................................48
Supplementary (ASX) information ...............................105
1
2022 LEPIDICO ANNUAL REPORT Highlights
Sustainability
• Lepidico has a zero-harm health & safety record with no incidents
reported in 2022; one low impact environmental incident recorded
with no lasting effects.
• Executive team expanded with General Manager Sustainability &
Country Affairs Namibia starting during the year; recruitment of
two General Manager Operations, one for Namibia and the other
for the UAE, and Project Director completed with all positions due
to commence during the September 2022 quarter.
• Alternatives identified to source green hydrogen for the UAE
chemical plant, which would materially reduce Scope 1 & 2
greenhouse gas emissions for the integrated Phase 1 operations,
to be best-in-class around 3t CO2-e/t LCE.
• Zero solid process waste from the UAE chemical plant closer to a
reality with LOIs signed with local customers for 100% of all Phase 1
bulk products including the gypsum residue.
• Lepidico scores in the top 5% of all ASX listed companies in
gender equality ratings by “Ellect” based on its Board and key
management composition.
Project Development
• Karibib Phase 1 concentrator Front End Engineering and Design (FEED)
completed that support both improved operability and a capital efficient
doubling in throughput, with the Namibian project fully permitted and
shovel ready.
• Abu Dhabi Phase 1 chemical plant Process Design Criteria finalised, which
incorporates design improvements based on operating data from 2022
demonstration plant pilot campaigns, engineering risk assessments and
third-party major mechanical equipment vendor testwork.
• Non-process infrastructure development at the KIZAD chemical plant
site is well advanced; architectural design of non-process buildings
started, design of the process buildings to start on completion of FEED.
• Binding offtake agreement signed with Traxys for 100% of annual lithium
hydroxide production for seven years or 35,000t; Traxys also acting
as agent for caesium sulphate solution (c.400tpa), with scope to be
expanded to other products by mutual agreement.
• Debt financier due diligence well advanced with an Independent Technical
Report, Environmental and a Social Due Diligence Review Report
completed by BDA; updated Letter of Interest and term sheet provided
from U.S. International Development Finance Corp.
2
2
2022 LEPIDICO ANNUAL REPORT
Strategic Resource Development
• Resource drilling at Helikon 4 returns some of the best intercepts in the
history of the Karibib project, with the weighted average intercept grade
of 0.60% Li2O from new drilling versus the Inferred Resource grade of
0.38% Li2O.
• Near term target to expand Karibib Measured & Indicated Resources to
extend Phase 1 operating life to over 20 years.
• Phase 1 provides the technologies for the world’s only source of new
caesium and rubidium supply. Critical Minerals for which the U.S. is 100%
import reliant; caesium supply is forecast to decline by over 40% from
2020 to end 2022.
• 20 different lithium mica and lithium phosphate deposits globally have
been successfully tested for their amenability to produce nominal
battery grade lithium chemicals using Lepidico’s low emissions
technologies, unlocking significant new lithium resource potential.
Business/Technology Development
• Phase 2 Scoping Study adapted for 25% of concentrate feed from
an expansion that doubles output of Karibib concentrator with the
balance sourced from third-party mines.
• L-Max® is being recognised as the “go to technology” for sustainably
processing lithium mica minerals due to being a far less energy
intensive process solution than conventional roasting, no solid
process waste potential and the added benefit of significant by-
product revenues.
• LOH-Max® is starting to get recognised as a lower emissions and lower
cost solution for direct conversion of lithium sulphate to nominal
battery grade lithium hydroxide without production of potentially
problematic sodium sulphate, which includes application for
spodumene, brine and potentially sedimentary hosted conversion.
• Proprietary alkali metals by-product refining process coupled with
L- Max® provides a sustainable solution for the production of three
U.S. Government Critical Minerals; lithium, caesium and rubidium.
2022 LEPIDICO ANNUAL REPORT
3
3
Our Evolution and Future
From Concept to Phase 2
4
4
2022 LEPIDICO ANNUAL REPORT
The Li-mica hydromet-technology concept is formulated within Strategic Metallurgy IP spun off into newly-formed LepidicoInitial round of seed capital raisedFirst testwork successful: leach + impurity removalRound two of seed capital raisedL-Max®process development beginsProvisional patent application made in AustraliaRound three of seed capital raisedFirst semi continuous mini-plant trials undertaken L-Max®international patent filedASX listing achieved via reverse takeover 5-Year Strategic Plan publishedExecutive management team appointedPhase 1 Pre-Feasibility Study beginsInitiation of L-Max®amenability trials on third party depositsSecond mini-plant trial undertakenPhase 1 Pre-Feasibility Study completed Hostile takeover successfully defendedPhase 1 Feasibility Study initiated Toronto office openedL-Max®amenability trials continueNational phase of L-Max®patents Lithium price cycle peaksBy-product processes developedprovisional patents lodged in AustraliaPilot Plant designed; construction startsLithium bear market beginsLOH-Max®process developed, provisional patent lodged in AustraliaPilot plant delivered on schedule and within budgetL-Max®viability confirmed via pilotFirst Mineral Resources via off-market takeover of TSX-V Desert Lion EnergyFeasibility Study extended to include Namibian Assets U.S. patent for L-Max®receivedAbu Dhabi selected for chemical conversion plantL-Max®patents granted in Australia, Japan and EuropeInaugural Ore Reserve report reveals that Lepidico owns the only undeveloped Cs and Rb Reserve globallyCompletion of Phase 1 Definitive Feasibility StudyNamibian permits to construct received LOH-Max®enters international patent phaseMandate letter signed with US Government’s lending institution International Development Finance CorpFirst technology licence package soldDebt retiredEnvironmental permit to construct Abu Dhabi grantedIndependent greenhouse gas assessment confirms low emissions intensityPhase 1 Project EPCM contract awarded: development works startShareholders support significant entitlement issue raising $12.5 million (before costs)Chemical plant FEED completeFull Phase 1 funding securedPhase 1 life extended to +20 yearsFinal approvals to construct Abu Dhabi grantedMining at Karibib beginsConcentrate production startsPhase 2 Pre-Feasibility StudPhase 1 Chemical Plant ramp-upPhase 2 Feasibility StudyExpectedFutureEvents2013201420152021202220232024202520162020201720192018Binding lithium offtake agreement with Traxys32Kg/hr demonstration scale pilot trials completePhase 1 concentrator FEED completeExecutive team expanded for Phase 1 implementationFYFYFYFYFYFYFYFYFYFYFYFYFY 2022 LEPIDICO ANNUAL REPORT
55
The Li-mica hydromet-technology concept is formulated within Strategic Metallurgy IP spun off into newly-formed LepidicoInitial round of seed capital raisedFirst testwork successful: leach + impurity removalRound two of seed capital raisedL-Max®process development beginsProvisional patent application made in AustraliaRound three of seed capital raisedFirst semi continuous mini-plant trials undertaken L-Max®international patent filedASX listing achieved via reverse takeover 5-Year Strategic Plan publishedExecutive management team appointedPhase 1 Pre-Feasibility Study beginsInitiation of L-Max®amenability trials on third party depositsSecond mini-plant trial undertakenPhase 1 Pre-Feasibility Study completed Hostile takeover successfully defendedPhase 1 Feasibility Study initiated Toronto office openedL-Max®amenability trials continueNational phase of L-Max®patents Lithium price cycle peaksBy-product processes developedprovisional patents lodged in AustraliaPilot Plant designed; construction startsLithium bear market beginsLOH-Max®process developed, provisional patent lodged in AustraliaPilot plant delivered on schedule and within budgetL-Max®viability confirmed via pilotFirst Mineral Resources via off-market takeover of TSX-V Desert Lion EnergyFeasibility Study extended to include Namibian Assets U.S. patent for L-Max®receivedAbu Dhabi selected for chemical conversion plantL-Max®patents granted in Australia, Japan and EuropeInaugural Ore Reserve report reveals that Lepidico owns the only undeveloped Cs and Rb Reserve globallyCompletion of Phase 1 Definitive Feasibility StudyNamibian permits to construct received LOH-Max®enters international patent phaseMandate letter signed with US Government’s lending institution International Development Finance CorpFirst technology licence package soldDebt retiredEnvironmental permit to construct Abu Dhabi grantedIndependent greenhouse gas assessment confirms low emissions intensityPhase 1 Project EPCM contract awarded: development works startShareholders support significant entitlement issue raising $12.5 million (before costs)Chemical plant FEED completeFull Phase 1 funding securedPhase 1 life extended to +20 yearsFinal approvals to construct Abu Dhabi grantedMining at Karibib beginsConcentrate production startsPhase 2 Pre-Feasibility StudPhase 1 Chemical Plant ramp-upPhase 2 Feasibility StudyExpectedFutureEvents2013201420152021202220232024202520162020201720192018Binding lithium offtake agreement with Traxys32Kg/hr demonstration scale pilot trials completePhase 1 concentrator FEED completeExecutive team expanded for Phase 1 implementationFYFYFYFYFYFYFYFYFYFYFYFYFY Chair’s and Managing
Director’s letter
Security of supply of sustainable raw materials for
the energy transition imperative – where lithium
is the one constant for mobile energy storage – is
becoming increasingly challenging in an ever more
complex world. Thankfully, as a society we have
now largely transitioned to living with the virus that
has controlled us for most of the past two years.
However, we are now confronted by its aftermath
of skills shortages and inflation, exacerbated by
conflict related energy shortages and supply chain
disruptions.
Lepidico is fortunate in this context. It operates
in relatively socio-politically neutral jurisdictions,
Namibia and Abu Dhabi, where essential skills are
currently reasonably available. Abu Dhabi also has
some of the world’s lowest and most stable energy
prices, and it is establishing itself as a global leader
in the development of new sources of renewable
energy that include solar and green hydrogen.
Lepidico is carving
a niche as the global
leader in sustainable
lithium mica processing.
This statement is not made lightly. Our proprietary
process technologies are an ideal fit for society’s
collective decarbonisation challenge due to their
low energy intensity, particularly versus conventional
roasting, their ability to leverage green hydrogen
for industry leading greenhouse gas emissions and
there being no solid process waste from chemical
conversion.
Testaments to this advantageous position, coupled
with Lepidico’s compelling strategy are firstly the
quality of the executives recruited in 2022 for
transitioning the business to construction and onto
operations, and secondly the unsolicited inbound
interest received in our technologies from the owners
of numerous lithium mica assets.
We are thrilled with the appointments of Benedicta,
Hans, Roly and Timo, who recently joined Lepidico,
doubling the size of the executive management
team. Collectively they bring expertise in
sustainability, project implementation with specific
experience in Abu Dhabi, mining, and chemical
processing operations. These skills complement
those already within the Company and position us to
deliver Phase 1.
There has been a groundswell of third-party interest
in our technologies over the past year, in part from
explorers that have identified lithium mica rich
pegmatites. We have now successfully completed
L-Max® amenability tests on samples from 20
different deposits globally and have yet to find a
lithium mica concentrate that can’t be efficiently
converted to a quality lithium chemical. This interest
has led us to consider the Phase 2 growth project
as an enabler to develop a global market for lithium
mica concentrates. We envisage that part of the
concentrate feed will come from an expansion of the
Karibib concentrator with the balance sourced from
multiple lepidolite mines. Lepidico offers a non-
roasting 21st century solution for such concentrate
producers that allows revenue to be maximised
from multiple by-products including strategic Critical
Minerals. It can also offer an expedited path to
production via the sharing of a concentrator design
and engineering package. These attributes make
Lepidico the go-to company for a wholistic lithium
mica development solution.
6
2022 LEPIDICO ANNUAL REPORT
Chair’s and Managing
Director’s letter
Most lithium demand forecasts have evolved
rapidly over the past year with several
commentators including the U.S. Government’s
Department of Energy now predicting demand to
exceed 3 million tonnes (LCE) by 2030.
Binding lithium offtake for the first 35,000 tonnes
of lithium hydroxide from Phase 1 was inked with
European trading company Traxys in December
2021. This is a major step forward for the Project
and represents an endorsement for both Lepidico’s
strategy and the lithium market outlook.
In addition, three other key Phase 1 workstreams
were materially advanced in 2022 but disappointingly
are now scheduled to conclude in the 2023 fiscal
year. Piloting of Karibib ore through the expanded
demonstration scale L-Max® facility in Perth
completed in July 2022, nearly six months behind
the original schedule largely due to Covid related
impacts. This workstream informs the chemical plant
process design that is essential for finalising FEED
under the EPCM contract with engineer Lycopodium,
which in turn is required for financiers to complete
their due diligence.
FEED completed for the Karibib concentrator in
2022, with the design modified to accommodate
a capital efficient expansion that will allow
concentrate output to double in support of the
Phase 2 growth project.
Phase 1 funding continues to be founded on
Development Finance Institution debt for the
Namibian operation and commercial lending into
Abu Dhabi, with negotiations well advanced and
now awaiting the completion of the chemical plant
FEED work. Feedback from lenders has been
positive regards the bankability of Phase 1, in part
due to Lepidico’s approach to risk management via
the development of a moderate commercial scale
starter project.
In August 2022 the expanded executive management
team met in person for the first time in Namibia,
where we developed Lepidico’s second 5 year
strategic plan. The objectives of the first plan are
retained, to fast track the business to free cash
flow generation by developing a sustainable lithium
business that leverages our proprietary technologies.
The second plan extends this to embrace growth,
by the development of a global market for lithium
mica concentrates from third-party mines that
provide feed to a larger scale Phase 2 chemical plant.
Royalties from technology licenses represent a further
opportunity, with one licence package already sold.
Modifications to the chemical plant design, informed
by the results from recent pilot trials coupled with
major equipment vendor testwork on samples from
the pilot campaigns and an optimised approach
favouring local UAE procurement have delayed
completion of FEED into the December 2022
quarter. The plant design is a result of extensive risk
evaluation and independent technical review, and
is far more robust particularly as far as operational
flexibility and maintainability are concerned.
As stated in prior years, Lepidico remains committed
to a sustainable business model. Implicit in this
are industry best practice protocols in the areas of
health, safety, the environment, human resources,
sustainability, and stakeholder engagement.
Lepidico is also striving to be an industry leader in
minimising waste generation and emissions, with
the objective of the Phase 1 chemical plant being a
zero solid process waste facility and industry leading
greenhouse gas emissions.
Most lithium demand forecasts have evolved rapidly
over the past year with several commentators
including the U.S. Government’s Department of
Energy now predicting demand to exceed 3 million
tonnes (LCE) by 2030. Over the year the market has
transitioned into fundamental deficit and It is difficult
to see how the upstream industry will be able to
respond to prevent the deficit expanding before the
end of the decade. This outlook has influenced both
lithium consumer and equity investor sentiment.
Chemical supply negotiations with end consumers,
not just for lithium but also caesium continued past
the end of the year to accommodate growing and
evolving interest in securing these products.
We again thank shareholders for another year of
outstanding support on our quest to build a new
vertically integrated global chemical company
manufacturing quality products for all, for a
healthier plant.
Yours Faithfully
Gary Johnson, Chair and
Joe Walsh, Managing Director
7
2022 LEPIDICO ANNUAL REPORT
The Lithium Industry
and its Markets
Tightening continues,
incentive prices holding
The prospect for a deep market imbalance is
already manifesting itself. Current market conditions
are tight, with deficits set to prevail into 2023 and
beyond according to many commentators.
“ In May 2022, Benchmark
announced that the lithium
industry would need $42bn
of investment to meet 2030
demand. Lithium demand will
surpass 1mt LCE for the first
time in 2025, with global EV
penetration rates set to hit 21%.
Lithium demand will surpass 2mt
LCE for the first time in 2030,
and 3mt LCE by 2033, with EV
penetration rates set to hit 34%
and 48% respectively.”
- Benchmark Mineral Intelligence (BMI)
After nearly three years of decline, lithium chemical
demand turned up in 2021 and continued to
accelerate into 2022 with only a muted supply side
response, in large part due to the lead time to bring
mothballed projects back on line. In Australia, both
existing and new supply faced headwinds from an
acute skills shortage, supply chain disruptions and
inflationary pressures.
The past year has seen most commentators
raise their lithium chemical demand expectation,
particularly for the second half of this decade. The
U.S. Government Department of Energy advised in
May 2022 that it expects annual demand to breach
3 million tonnes as early as 2030, three years ahead
of BMI’s forecast, implying a more than six-fold
increase from actual 2021 demand.
This begs the question, “will industry be able to
respond in time to satisfy such demand growth?”
Permitting continues to be a challenge for many
new projects as environmental and social pressures
continue to intensify. New developments are also
getting more ambitious with several projects slated
to produce as much as 100,000tpa LCE; enormous
scale versus the prevailing 20,000-25,000tpa
modules currently in operation. And even these have
experienced considerable delays on commissioning
and ramp-up challenges.
In 2022, spot lithium chemical prices leaped to
record highs of over US$70,000/t LCE, prior to
easing back and holding in a US$60,000-65,000/t
range. Contract prices have been slower to
respond, however, around fiscal year end prints
over US$50,000t were being recorded, converging
towards spot.
Exponential Demand Growth Ahead
Electric vehicle (EV) sales continue to be the key
demand driver for battery materials and lithium
is a key component with little potential apparent
for substitution. EV adoption rates eased in 2021
during the pandemic and associated supply chain
disruptions. Despite this EV sales broke new records
in 2021, with nearly 10% of global car sales being
electric, four times their market share in 2019. Public
and private spending on EVs doubled relative to
2020. And more and more countries have pledged
to phase out ICEs or have committed to ambitious
electrification targets. Five times more EV models
were available in 2021 relative to 2015, and most
major carmakers have announced plans to further
accelerate electrification of their model offerings.
This increase in EV model alternatives has driven
adoption rates higher still in the first half of 2022.
Global EV sales more than doubled year-on-year
in 2021 to more than 6.8 million units, with nearly
52% in China alone. Macquarie commented in
August, “electric vehicle sales have continued
to grow strongly in 2022 despite rising battery
prices, shortages of key components and slowing
economic growth. Global sales were up an
estimated 57% YoY in January to July and we think
sales will hit 10 million vehicles this year.”
The median price of electric cars in China is just
10% more than conventional cars, compared
to 45-50% on average in other major markets.
However, this is set to change. Government policy
is kicking demand into a new gear in the U.S. with
the passing of the Inflation Reduction Act, which
will only accelerate the need for automakers to
secure lithium sources, especially in North America.
BMI recently stated, “Government sway is now in
play and we are seeing it in full force in the USA and
just the beginning in Canada. The lithium ion battery
is now geopolitical. And if EVs mean lithium ion
batteries, then EVs mean mining.”
8
2022 LEPIDICO ANNUAL REPORT
Lithium commentators continued to revise their EV
adoption estimates upwards during the past year,
supported by increasingly aggressive electrification
targets by automakers and governments, particularly
in North America and Europe. Brazil, Canada, Japan,
Italy, South Korea and Mexico amongst others
have selected a 30% electric vehicle sales target
by 2030, while France, Germany, India, Israel, The
Netherlands, Norway and the UK have stated they
propose to end internal combustion engine vehicle
sales between 2030 and 2040. And the U.S. has
set a target for new light vehicle sales of 50% being
electric by 2030.
In mid-2022 BMI summarised the outlook for
lithium, “Robust EV demand and drought in China
in 2022 [have impacted] short-term lithium prices.
In the long-term, Benchmark forecasts supply and
demand of lithium to somewhat balance in 2026,
stabilising prices. But without significant investment
soon, the supply deficit will worsen from 2030 as
demand skyrockets".
A Year of Two Halfs for Lithium Equities
Investor sentiment towards lithium companies
approached the euphoric in late 2021 when the
Global X Lithium & Battery Tech ETF posted a more
than five-fold appreciation from its cycle low of just
18 months earlier. The ETF then retraced over 30%
during early 2022 before rebounding. This volatility
was multifaceted, caused by geopolitical tensions,
hyper-inflation concerns, energy security,
an economic slowdown associated with fiscal
tightening in major economies and the impact of
renewed Covid-19 lockdowns in parts of China.
Lepidico’s share price generally tracked the Lithium
ETF during the year, apparently being influenced
more by macro themes than company fundamentals.
Lepidico is relatively well positioned as a project
developer, with assets in neutral countries that
are less impacted by energy scarcity, energy price
volatility and skills shortages.
Revenue Enhanced from By-Products
Lepidico’s suite of proprietary process technologies
essentially deconstitute the lepidolite concentrate
feed into five product streams in addition to lithium,
with no solid process waste generated.
Significant structural change is occurring in the
caesium and rubidium markets, with a single
producer emerging following depletion of several
sources of pollucite in recent years. Lepidico
aims to bring choice and balance back to these
markets thanks to its unique technologies that,
unlike roasting, extract these Critical Minerals into
individual product streams.
Our technologies are also designed to produce
three bulk products: SOP, a premium value fertiliser;
amorphous silica for sale locally within the UAE as
an eco-friendly supplementary cementitious material;
and the gypsum rich residue, for which markets have
been identified locally.
Prices (January 2016 - August 2022)
Source: BMI, ASX
Lithium Hydroxide (min 56.5%)
Lepidico share price
(US$/t)
80,000
60,000
40,000
20,000
0
Jan ‘16
Jan ‘17
Jan ‘18
Jan ‘19
Jan ‘20
Jan ‘21
Jan ‘22
(AUD)
0.08
0.06
0.04
0.02
0.00
9
2022 LEPIDICO ANNUAL REPORT
Project Development
Phase 1 Project Update:
Progressing to
CashFlow Generation
The Fundamentals:
Core Project
Parameters
Development works for the Karibib mineral
concentrator and Abu Dhabi chemical conversion
plant continued in 2022 under the two Engineering
Procurement & Construction Management (EPCM)
contracts with Lycopodium Minerals Pty Ltd
(Lycopodium). Lycopodium, a leader in integrated
engineering, construction and asset management
for mineral processing and chemical plants,
completed the FEED work for the concentrator,
which employs conventional process technology
during the year. FEED for the chemical plant has
taken longer than originally planned in order to
incorporate process design improvements that
emanated from the successful pilot plant trials
that completed in July 2022, along with optimised
procurement based on local UAE sourcing.
Chemical plant FEED is now scheduled to complete
in November 2022 with an investment decision
expected early in 2023, subject to finance. The
Karibib site is shovel ready with all permits in place.
Infrastructure development to the chemical plant
site at KIZAD (Khalifa Industrial Zone of Abu Dhabi)
is well advanced and the essential Environmental
Permit to Construct has been awarded.
Mining and commissioning of the concentrator
is now scheduled to start later in 2024 with the
chemical plant commissioning in 2025. Timing will
be dictated by the lead times for delivery on major
mechanical equipment.
Vertical integration means that Phase 1 will reap
the full value chain benefits - from ore mining to
fine chemical manufacture - via our proprietary
hydrometallurgical technologies that include L-Max®
and LOH-Max®.
Phase 1 involves the production and shipment of
lepidolite concentrate from Namibia to the chemical
conversion plant at KIZAD in the United Arab
Emirates. The conversion plant has a concentrate
capacity of 6.9tph (tonnes per hour), capable of
producing 5,600tpa. Average annual Phase 1 Project
(P1P) output over the project life is estimated at
approximately 4,500tpa of battery grade lithium
hydroxide monohydrate plus a proportion of out of
specification material, and a suite of value add by-
products.
The relatively modest scale of Phase 1 is an
important part of Lepidico’s strategy to grow, whilst
managing development and operating risks for
stakeholders. The project is designed to be large
enough to make an attractive economic return while
being sufficiently small to judiciously manage scale-
up risk – scale up from recent L-Max® pilot leach
trials is just over 200 times.
Attractive investment fundamentals from the May
2020 Definitive Feasibility Study (DFS) include an
NPV8% of US$221 million (A$340 million) and an
Internal Rate of Return of 31% ungeared. Through
the FEED process project economics have continued
to be assessed, based on interim capital estimates
from the engineer, in-house reassessment of
operating costs, coupled with the latest lithium price
forecasts from BMI. In parallel with this, various
value enhancement initiatives have been progressed
that include waste minimisation, greenhouse gas
emissions reduction and project life extensions
via the upgrading of Inferred Mineral Resources
to Measured and Indicated categories. These
advancements over the past two years imply that
Phase 1 is a far more robust project in 2022.
The DFS capital cost estimates meet the Association
of the Advancement of Cost Engineering (AACE)
Class 3 requirements for a Feasibility Study. The
nominal accuracy is +/- 15%. The new control
estimates for both processing facilities are being
prepared by Lycopodium, with the objective of
improving accuracy towards a Class 2 estimate.
Underlying engineering is informed by nearly a
decade of process development work that includes
four continuous pilot plant trials, with the most recent
conducted in 2020 at a concentrate throughput rate
of 32kg/hr.
10
2022 LEPIDICO ANNUAL REPORT Impression of Phase 1 Chemical Plant
11
2022 LEPIDICO ANNUAL REPORT Simon Kahovera, Exploration Manager at Helikon 4
12
2022 LEPIDICO ANNUAL REPORT Mines & Concentrator:
Minimum Disturbance,
Maximum Efficiency
Our upstream operations in Namibia, are designed
to minimise environmental impacts in large part by
maximising the use of land disturbed by previous
mining activities. In fact, the previously abandoned
mines at Rubicon and Helikon will ultimately be
rehabilitated under Lepidico’s closure plan and
returned to agricultural use thereby improving the
environment from its current state.
Redevelopment of two modest scale open pit mines
at the Rubicon and Helikon 1 deposits formed the
basis for the DFS. Success in 2022 at Helikon 4
in identifying additional high-grade mineralisation
versus the current Inferred Mineral Resource
estimate provides considerable encouragement for
extending mine life beyond 20 years and thereby
further remediating land disturbed by historical
mining.
A small fleet of one 50-tonne excavator and three
35 tonne dump trucks can adequately support the
schedule for the first half of the mine life. Ore will
be blended before the concentrator to optimise
production and feed quality.
Helikon 1 is a satellite pit located some 7km north
of the central concentrator at Rubicon where
the greatest tonnage of ore is located. The haul
road from Helikon 1 is already developed and
conventional trucks will be used for haulage. Helikon
4 is situated just 1km north of Helikon 1 with access
already established.
Mine waste from the Helikon satellite pits is planned
to be placed into their own Waste Management Area
(WMA), constructed adjacent to each pit.
Rubicon mine waste will be placed in a dedicated
WMA immediately to the east of the open pit. There,
it will be co-disposed with filtered and dewatered
tailings from the mineral concentrator and used
to construct the walls and to cap the facility at
closure. This approach is achievable as the tailings
are benign. It also minimises land disturbance,
water use and project closure costs. Each WMA
will form a stable structure that can be returned to
agricultural use.
The mineral concentrator will use conventional
crushing, grinding, desliming and froth flotation
processes followed by dewatering of concentrate
and tailings streams. 85% of the water is recycled for
use in the plant.
The lithium principally occurs in lepidolite and lithian
muscovite, as well as more modest amounts of the
phosphate mineral amblygonite. These minerals
lend themselves to concentration via conventional
flotation. The overall recovery of lithium to the lithium
concentrate is 80-90%, at a concentrate grade
ranging between of 2.5%-4.2% Li2O. These values
vary according to the mineralogy.
The concentrator is designed with efficient cost
effective expansion in mind and will go through
progressive minor upgrades during the operating life
to cater for a declining head grade. It may also be
expanded to materially increase concentrate output
to support Phase 2 as discussed later.
The general approach to engineering has been to
utilise pre-engineered modular plant for the major
concentrator sections including crushing, grinding,
flotation, dewatering and services. This minimises
the amount of project-specific engineering. The
equipment can be supplied pre-assembled and skid
mounted or containerised, reducing construction
effort and commissioning time.
Initially concentrate from Karibib will be bagged
and containerised to prevent contamination during
its journey to Abu Dhabi for chemical conversion.
However, once operational more cost effective
alternatives will be risk evaluated. Just five truck
movements per day will be required to transport the
concentrate bags, 220km to the port of Walvis Bay.
From there it will be shipped to the Khalifa container
port in Abu Dhabi. KIZAD, where the L-Max®
plant will be constructed, includes a purpose-built
industrial free zone adjacent to the port with truly
world class developed infrastructure.
Chemical
conversion plant:
Patented energy
efficiency technologies
L-Max®, Lepidico’s lead proprietary process
technology has developed from concept in 2012
to pilot proven via four separate continues plant
programs, each at increased scale. Refinements
to the process continued to be made in 2022 via
learnings from the latest demonstration scale
pilot campaign which led to multiple flowsheet
improvements that were incorporated into a revised
process design in June 2022. Extensive flowsheet
modelling coupled with significant major equipment
vendor testwork has resulted in an even more
robust process.
Patent protection was received in fiscal 2020 for
L-Max® in Australia, Europe, Japan and the United
States.
The Phase 1 chemical plant is designed to process
56,700tpa (dry) of lithium mica/amblygonite
concentrate at a feed grade of up to 4.2% Li2O, for
production capacity of 5,600tpa of lithium hydroxide.
The overall lithium recovery from concentrate to
lithium hydroxide is estimated at 90%.
13
2022 LEPIDICO ANNUAL REPORT During the L-Max® process direct leaching of the
input mineral concentrate from the feed negates
the need for energy intensive thermal or elevated
pressure treatment steps, which are required by
many other hard rock lithium conversion processes.
The maximum process temperature is just 120oC
versus well over 1,000oC for conventional hard rock
conversion. Furthermore L-Max® operates entirely at
atmospheric pressure.
Crystallisers are used to purify various Phase 1
products with process heat in the form of steam the
main potential source of greenhouse gas emissions
depending on the energy source. At start-up it
is planned that natural gas will be employed.
However, the boiler will be hydrogen enabled and
when operated on green hydrogen plant emissions
are estimated to fall by 60%, allowing Phase 1 to
produce possibly the lowest carbon intensity lithium
in the industry. More detail is provided on this in the
Sustainability Report.
Handling of the leached slurry is a unique part of the
L-Max® process. Filtered at moderate temperature
the slurry yields a solution containing the valuable
alkali metals and a silica-rich filter cake. Effective
washing of this cake achieves high lithium recovery
to the liquor moving downstream.
The filtered leach liquor, which is also rich in
aluminium, is cooled - crystallising an alum solid.
This step achieves the separation of lithium from
the other alkali metals present; potassium, rubidium
and caesium.
Filtering the alum slurry results in the potassium,
rubidium and caesium, and most of the aluminium
precipitating as solids. The liquor contains the
lithium as a sulphate along with small amounts of
other impurities.
The filtered alum solids are further treated by a
separate patented process, recently dubbed PCR-
Max to yield potassium, caesium and rubidium
products.
The impure lithium-rich liquor is then treated through
a series of pH controlled precipitation stages,
with limestone and lime, to remove the remaining
impurities. The resulting lithium sulphate solution is
of sufficient quality to allow the recovery of a high
specification lithium product.
LOH-Max® allows the cost-effective production
of high purity lithium hydroxide without the co-
production of sodium sulphate. Conventional lithium
conversion crystalises sodium sulphate via a costly
energy intensive process. Furthermore, the sodium
sulphate market is mature with limited opportunities
for sales growth and disposal is impractical due to
the compound being highly soluble.
LOH-Max® represents an elegant solution for the
direct hydrometallurgical conversion of lithium
sulphate liquor produced from L-Max® to create
lithium hydroxide along with a gypsum rich residue.
Provisional patent applications for LOH-Max® and
PCR-Max advanced in fiscal 2022.
Chemical conversion
plant key benefits
• No solid process waste with
multiple uses identified for the
gypsum rich residue
• Low energy intensity with
potential to have industry
leading low greenhouse gas
emissions when green hydrogen
is available for generation of
process heat
• Low temperature and
atmospheric leach with no
roasting or elevated pressure
stages required, for reduced
process risk and low emissions
• Modest water use associated
with the manufacture of all
products
• Technology research and
development spans 10 years;
successfully piloted through
four progressively larger plants
reducing Phase 1 scale-up to just
over 200 times
• Multiple products maximise and
diversify revenue
• Conventional processing
equipment and non-exotic
materials of construction
• Processes are scalable; Phase
1 is designed to demonstrate
commercial viability while
minimising risk; the Phase 2
concept is intended to generate
economies of scale
14
2022 LEPIDICO ANNUAL REPORT
Business Development
Three Key Workstreams
to Deliver Phase 1
At fiscal year end non-process infrastructure
development at the KIZAD plant site was well
advanced; architectural design of non-process
buildings had started, with design of the process
buildings to start on completion of FEED.
Three key workstreams to
transition Phase 1 into the
construction phase materially
advanced in fiscal 2022:
• securing the required permits
and approvals
• entering into binding offtake
agreements
• arrangement of a full project
funding package
1. Permits & Approvals
Karibib is fully permitted for the re-development
of the two open pit mines at Rubicon and Helikon
1, as well as for the construction and operation of
the centralised mineral concentrator. Major permits
include the Mining Licence (ML204), water extraction
permit and Environmental Compliance Certificates
(ECC) for the Project, and a separate ECC awarded
for the overhead power transmission line.
Of note, the mining licence was granted in 2018 for a
period of ten years - covering all currently identified
Mineral Resources at Karibib, as well as many high-
priority lithium pegmatite exploration targets.
The latter represent opportunities to expand the
Mineral Resource to extend Phase 1 operating
life and support a Phase 2 Project development.
Water extraction at Karibib is governed by a
standalone permit that could support a doubling
in concentrate production, which underpins the
Phase 2 scoping study.
The Environment Agency of Abu Dhabi (EAD)
provided Lepidico with an environmental approval
to construct in fiscal 2021. This allowed a
Musataha Agreement with Abu Dhabi Ports (ADP)
to be executed in 2022 securing the site for the
Phase 1 chemical plant at KIZAD for an initial term
of 25 years. The associated Affection Plan was
subsequently granted allowing Lycopodium to
start works with a local engineer on infrastructure
and tie-ins.
2. Offtake
A major project milestone was reached in December
2021 with the signing of a binding offtake agreement
for sales-marketing, logistics and trade finance with
Traxys Europe S.A. (Traxys) for 100% of the lithium
hydroxide produced from Phase 1 over the first 7
years of operation. In addition, Traxys will act as
agent for 100% of the production of caesium sulfate
solution from the chemical plant.
The Traxys Group, headquartered in Luxembourg,
is a multinational marketer, distributor and trader
of base metals, concentrates, chemicals, industrial
minerals, rare earths, uranium, materials for steel
mills and foundries, and minor and alloying metals.
Its logistics, marketing, distribution, supply chain
management and trading activities are conducted
by over 450 employees, in over 20 locations
worldwide. Traxys has annual turnover in excess of
US$7 billion.
The agreement is for Traxys to act as principal to
purchase and assume title and risk for delivery
of lithium hydroxide and on-sell the products to
end users. The structure also allows the flexibility
for Lepidico to originate offtake, with Traxys still
contracting as the consumer interface. Traxys will
manage the logistics of finished products, provide
credit terms to end customers and a trade finance
facility to Lepidico.
The relationship between Lepidico and Traxys is
transparent with both parties collaborating on final
customer selection and development, and end-user
contract terms for lithium hydroxide and caesium
sulfate. It is expected that the majority of volumes
sold to Traxys for on-sale to customers will be on
a back- to-back contract basis with pricing to be
agreed with the end-user customer. For lithium, the
agreement also accommodates instances where
volume is supplied on a market price index linked
basis, with a quarterly true up or reconciliation. The
net commissions earned by Traxys are competitive
within the industry for such an arrangement. At year
end negotiations were well advanced for supply of
lithium hydroxide to manufacturers within the electric
vehicle supply chain.
15
2022 LEPIDICO ANNUAL REPORT
Excellent demand continues to be seen for the
Phase 1 caesium product, while the rubidium
market is far more opaque, necessitating a
multifaceted approach to product development in
collaboration with both industry and universities.
Business Development:
Phase 2 & Technology
Licences
Great progress has been made in marketing the
Phase 1 SOP, a premium value fertiliser as well as
the amorphous silica for sale locally within the UAE
as an eco-friendly supplementary cementitious
material.
Considerable interest has been received for the
gypsum rich residue, which has been successfully
tested for multiple uses including as a soil
conditioning material and in various construction
applications.
3. Finance
Lepidico has been working with specialist debt
advisor Lion’s Head Global Partners (LHGP) since
December 2019. LHGP has specialist capabilities in
our geographies of Africa, the UAE, Europe and the
United States.
In October 2020, Lepdico entered into a formal
Mandate Agreement with the U.S. Government’s
International Development Finance Corporation
(DFC). Detailed due diligence on the Project, with
a view to providing debt finance for the Namibian
developments continued throughout fiscal 2022.
Behre Dolbear Australia Pty Ltd, independent
engineer to DFC, completed both environmental
and social due diligence on Phase 1 as well as
a technical review. At year end it had started a
review of the 2022 pilot plant trial results to round
out this essential workstream. Towards year end
DFC provided an updated Letter of Interest and
term sheet for lending to the Namibian project.
The process, managed by LHGP, for securing
lending from commercial lenders for the Abu Dhabi
development is also well advanced.
Phase 2 Preparation
Completion of FEED works for the Phase 1
concentrator allowed a debottlenecking and
expansion study to be undertaken during the year.
Existing water infrastructure and the planned power
supply have capacity to support a doubling of the
ore milling rate to 520,000tpa. Preliminary results
from the expansion review indicate that a doubling
of throughput on higher grade lepidolite ore could
support a doubling of concentrate output in an
extremely capital efficient manner.
Positive exploration results at Helikon 3-4 and
encouragement from regional exploration activities
in fiscal 2022, coupled with unsolicited interest from
owners of lithium mica assets justified a review of
Phase 2 development options. An additional 5-7
million tonnes of near surface Measured-Indicated
Mineral Resources at Karibib of similar grade to
Rubicon-Helikon 1 is sufficient to support a Pre-
Feasibility Study on a Phase 2 chemical plant project
of similar scale to Phase 1.
However, additional sources of concentrate from
third-party lithium mica mines could support a
significantly larger chemical conversion plant and
lead to the development of a global market for lithium
mica concentrates. Walvis Bay in Namibia and Abu
Dhabi will continue to be evaluated as prospective
locations for a Phase 2 plant along with locations in
the U.S.. The Scoping Study contemplates a nominal
output capacity of 20,000tpa LCE.
Technology Licences
Lepidico sold its first technology licence in December
2020 to Cornish Lithium Ltd (CLL), a privately-held
UK company. CLL is pioneering the development of
lithium mica deposits in the large St Austell granite
complex in southwest England.
The collaboration with CLL is to pioneer Lepidico’s
technologies on zinnwaldite and polylithionite
mineralisations, to complement the extensive work
already completed by Lepidico on lepidolite and
lithium muscovite.
16
2022 LEPIDICO ANNUAL REPORT
Resources, Reserves and
Exploration
The Current Overview
Karibib Lithium Project
The Karibib Lithium Project comprises two
tenements covering 234km2 of the Karibib Pegmatite
Belt in central Namibia. This northeast-southwest
trend contains numerous pegmatites, many of which
are highly fractionated LCT-type (lithium-caesium-
tantalum) that can contain economic concentrations
of alkali metal rich minerals.
The project area contains some of the largest
known LCT-type pegmatites in the region, namely,
the Rubicon pegmatite and the Helikon group
pegmatites. The dominant lithium minerals in these
pegmatites are lepidolite, lithium-mica and petalite.
The Company’s current Mineral Resources occur at
the Rubicon pegmatite and at five pegmatites in the
Helikon field (Helikon 1 - 5). All lie within the granted
Mining Licence, ML 204 (Figure 1).
Small-scale mining occurred periodically at the
Rubicon and Helikon pegmatites from the 1930s
to the mid-1990s, primarily for beryl, tantalite and
petalite for use in the ceramics industry. As a result,
over 95% of the remaining lithium minerals within
current Mineral Resource are lepidolite, lithian
muscovite and amblygonite (a lithium phosphate
mineral), which are all amenable to the Company’s
proprietary process technologies.
Mineral Resources
Total Mineral Resources at the Karibib Lithium
Project stand at 11.87Mt @ 0.45% Li2O.
The current Mineral Resource estimates (MREs)
for Rubicon and Helikon 1 were prepared by
Snowden Mining Industry Consultants (Snowden)
in accordance with the JORC Code (2102) and
reported to the ASX in January 2020. This work was
supported by an infill diamond core drilling program
comprising 86 holes for 5,164m completed by
Lepidico after it acquired the project in 2019.
Measured and Indicated Resources at the two
pegmatites at Rubicon and Helikon 1 total 8.87Mt
@ 0.43% Li2O. These MREs also include estimates
for the recoverable metals caesium, rubidium and
potassium. As reported by Lepidico to the ASX in
July 2019, the MREs for Helikon 2 - 5 were prepared
by The MSA Group prior to Lepidico’s involvement
and do not include assay data for caesium, rubidium
or potassium at this time.
Figure 1. Tenements and geology of the Karibib Lithium Project in central Namibia.
17
2022 LEPIDICO ANNUAL REPORT The pegmatites are generally zoned with a central
quartz core fringed by petalite with lepidolite-rich
zones occurring adjacent and peripheral to the
petalite. During historical mining, some of the
lepidolite and other lithium mica mineralisation
was mined to access the petalite and discarded
in surface stockpiles or reported as tailings from
processing. Lepidico completed a program of work
on the stockpile material to enable the reporting, in
March 2021, of Mineral Resources classified under
the JORC Code (2012).
This is a function of the rich metal endowment of the
mineral lepidolite – K(Li,Al)3(Al,Si,Rb, Cs)4O10(F,OH)2 –
the dominant lithium mineral at Karibib.
Resource Development & Exploration
Lepidico is maximising the value of its exploration
via programs that target a range of valuable metals
that are prospective in the Karibib region. In addition
to lithium, caesium and rubidium, this includes
tantalum, gold, copper and tungsten.
Pit optimisations on the Rubicon and Helikon 1
deposits undertaken by Australian Mine Design and
Development Pty Ltd (AMDAD) demonstrate these
Mineral Resources to be potentially economic at a
cut-off grade of 0.15% Li2O.
With the easing of Covid-19 restrictions exploration
was able to recommence with a range of Mineral
Resource development and exploration programs
completed during the year.
Ore Reserves
Work included:
The dip, geometry and near surface location of the
mineralised zones at Rubicon and Helikon 1 are
suitable for conventional open pit truck and shovel
operations, with drilling and blasting required to
fragment mineralised and waste rock.
An industry standard approach to mine planning has
been undertaken:
• Whittle 4X™ pit optimisation was used by AMDAD
to define the location and shape of the open pits for
the mine plan.
• The software uses stable pit wall slopes, mining,
processing and administration operating costs,
process recoveries and product prices to determine
the highest value pit shell.
• It accounts for the interactions of these inputs
with the deposit geometry, the depth, width and
orientation of the mineralised zones and the grade
distribution of the target product within those zones.
• The highest value, or optimised, pit shell is then
used to guide design of a practical working pit
including wall slope designs and access roads.
Pit wall slopes are based on a geotechnical
assessment by engineers Pells Sullivan and Meynink.
The geotechnical assessment was based on:
(i) dedicated geotechnical drilling in final pit walls;
(ii) mapping of fault structures;
(iii) core assessment and physical rock testing; and
(iv) failure modelling.
Inter ramp angles are 55° based on 15m high
benches with 8m berms.
The Rubicon and Helikon 1 pit designs have been
completed in four and two stages, respectively. The
stages have been selected based on value, grade,
and strip ratio criteria. The Ore Reserves Statement
has been prepared by AMDAD in accordance with
the guidelines of the 2012 Edition of the JORC Code.
This was reported to ASX in May 2020.
• Targeting blind LCT-type pegmatites using an in-
house developed algorithm
• Soil testing with a portable XRF analyser using Rb
as a proxy for Li
• Scout drilling of regional targets
• Initial phase drilling of Marble Hill and Homestead
pegmatites
• Near-mine drilling to test extensions of the Rubicon
pegmatite
• Detailed sampling of Rubicon stockpiles to
upgrade MRE to Indicated
• Resource drilling of Helikon 4 pegmatite to
upgrade MRE to Measured and Indicated
Resource development activities concentrated on
the Helikon 4 pegmatite and the Rubicon stockpiles,
with the aim of upgrading the current Inferred Mineral
Resources to Measured and Indicated categories
and therefore allow them to be included in the Phase
1 mine plan.
The first phase of drilling at Helikon 4 comprised 20
holes for 1,612m of mostly reverse circulation (RC)
drilling, with six holes completed with diamond tails.
The results of this phase were reported on
27 June 2022 and included:
• 40.0m @ 1.08% Li2O from massive and
disseminated lepidolite in hole HRCH033
• 34.8m @ 1.25% Li2O from massive and
disseminated lepidolite in hole HRCHD035
• 20.0m @ 1.16% Li2O from a zone of albite with
disseminated lepidolite in hole HRCH039
An additional phase of RC drilling of 18 holes for
1,487m was completed at Helikon 4 subsequent to
year end in August 2022.
Updated MREs for both the Rubicon stockpiles and
Helikon 4 are planned for October 2022.
The Karibib Lithium Project Ore Reserve is understood
to be unique, being the only estimate globally that
includes lithium, caesium and rubidium, completed in
accordance with the JORC Code, in addition to the
other valuable alkali earth metal potassium.
The success at Helikon 4 led to a similar drilling
program being designed for the Helikon 2 and
Helikon 3 pegmatites to test for mineralisation in
undrilled zones between the known deposits. This
work is planned for fiscal 2023.
18
2022 LEPIDICO ANNUAL REPORT Core trays at the Karibib project core shed containing drill core from Helikon
Karibib Mineral Resource Estimate
Resource
Category
Tonnes
(Mt)
Li₂O
(%)
Deposit
Rubicon*
Helikon 1
Helikon2
Helikon3
Helikon4
Helikon5
Measured
Indicated
Measured
Indicated
Inferred
Inferred
Inferred
Inferred
Inferred
Rubicon tailings
Indicated
Rubicon stockpiles
Inferred
Helikon stockpiles
Inferred
Project Global
Measured
Indicated
Inferred
Total
11.87
1.56
5.72
0.64
0.94
0.17
0.22
0.29
1.51
0.18
0.07
0.41
0.16
2.20
6.73
2.94
0.53
0.36
0.65
0.50
0.70
0.56
0.48
0.38
0.31
0.99
0.84
0.65
0.57
0.39
0.50
0.45
Rb
(%)
0.28
0.20
0.25
0.22
0.29
Cs
(ppm)
Ta
(ppm)
335
232
520
531
47
37
61
74
1100
150
K
(%)
2.24
2.11
1.90
1.81
2.18
0.42
538
60
0.23
0.27
0.21
535
389
277
125
51
42
2.14
Cut-off
(% Li20)
Effective
Date
0.15
0.15
0.15
0.15
0.15
0.20
0.20
0.20
0.20
0.00
0.00
0.00
28.01.2020
28.01.2020
28.01.2020
28.01.2020
28.01.2020
18.10.2018
18.10.2018
18.10.2018
18.10.2018
29.01.2021
10.03.2021
21.02.2021
21.02.2021
29.01.2021
10.03.2021
10.03.2021
Notes: no cut-off applied to stockpiles on the assumption that all such material would be processed; some errors due to rounding
19
2022 LEPIDICO ANNUAL REPORT
Karibib Ore Reserve Estimate (effective date 27 May 2020)
Pit
Rubicon Pit
Proved
Probable
Pit Total
Waste
Waste: Ore Ratio
Helikon 1 Pit
Proved
Probable
Pit Total
Waste
Waste: Ore Ratio
Total Project
Proved
Probable
Total Ore
Waste
Waste: Ore Ratio
Mt
1.38
3.94
5.32
22.84
4.30
0.55
0.85
1.40
2.51
1.80
1.93
4.79
6.72
25.35
3.80
Li₂O
%
0.55
0.38
0.43
0.69
0.51
0.58
0.59
0.41
0.46
Rb
%
0.28
0.20
0.22
0.26
0.22
0.24
0.28
0.21
0.23
Cs
ppm
350
230
260
560
550
550
410
290
320
Ta
ppm
50
40
40
60
80
70
50
40
50
K
%
2.17
2.03
2.06
1.93
1.79
1.85
2.10
1.99
2.02
Competent Person Statements
The information in this report that relates to the Rubicon and Helikon 1 Mineral Resource estimates is extracted from an ASX
Announcement dated 30 January 2020 (“Updated Mineral Resource Estimates for Helikon 1 and Rubicon”). The Mineral Resource
estimates were completed by Vanessa O’Toole of Snowden Mining Consultants Pty Ltd in accordance with the guidelines of the JORC
Code (2012). The Company confirms that it is not aware of any new information or data that materially affects the information included
in the original market announcement and that all material assumptions and technical parameters underpinning the Mineral Resource
estimates in the relevant market announcement continue to apply and have not materially changed. The Company confirms that the
form and context in which the Competent Person’s findings are represented have not been materially modified from the original market
announcement.
The information in this report that relates to the Helikon 2 to Helikon 5 Mineral Resource estimates is extracted from an ASX
Announcement dated 16 July 2019 (“Drilling start at the Karibib Lithium Project”). The Mineral Resource estimates were completed
by Jeremy Whitley of the MSA Group (Pty) Ltd in accordance with the guidelines of the JORC Code (2012). The Company confirms
that it is not aware of any new information or data that materially affects the information included in the original market announcement
and that all material assumptions and technical parameters underpinning the Mineral Resource estimates in the relevant market
announcement continue to apply and have not materially changed. The Company confirms that the form and context in which the
Competent Person’s findings are represented have not been materially modified from the original market announcement.
The information in this report that relates to the surface stockpiles Mineral Resource estimates is extracted from an ASX Announcement
dated 12 March 2021 (“Karibib Mineral Resource Expanded”). The Mineral Resource estimates were completed by Stephen Godfrey of
Resource Evaluation Services in accordance with the guidelines of the JORC Code (2012). The Company confirms that it is not aware
of any new information or data that materially affects the information included in the original market announcement and that all material
assumptions and technical parameters underpinning the Mineral Resource estimates in the relevant market announcement continue to
apply and have not materially changed. The Company confirms that the form and context in which the Competent Person’s findings are
represented have not been materially modified from the original market announcement.
The information in this report that relates to the Rubicon and Helikon 1 Ore Reserve estimates is extracted from an ASX Announcement
dated 28 May 2020 (“Definitive Feasibility Study delivers compelling Phase 1 Project results”). The Ore Reserve estimates were
completed by John Wyche of Australian Mine Design and Development Pty Ltd in accordance with the guidelines of the JORC Code
(2012). The Company confirms that it is not aware of any new information or data that materially affects the information included in
the original market announcement and that all material assumptions and technical parameters underpinning the Mineral Resource
estimates in the relevant market announcement continue to apply and have not materially changed. The Company confirms that the
form and context in which the Competent Person’s findings are represented have not been materially modified from the original market
announcement.
The information in this report that relates to Exploration Results is based on information compiled by Mr Tom Dukovcic, who is an
employee of the Company and a member of the Australian Institute of Geoscientists and who has sufficient experience relevant to
the styles of mineralisation and the types of deposit under consideration, and to the activity that has been undertaken, 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.” Mr Dukovcic consents to the inclusion in this report of information compiled by him in the form and context in
which it appears.
20
2022 LEPIDICO ANNUAL REPORT
Lepidico geologist, Vaino Shihepo and field technician, Shyrlock Muukwa at the
Helikon 4 drilling station, logging drill chips.
21
2022 LEPIDICO ANNUAL REPORT Board of Directors
and Management
Board of Directors
Mr Gary Johnson MAusIMM, MTMS, MAICD
Chairman (Non-executive) Appointed 9 June 2016
Gary has more than 40 years’ experience in the mining industry as a
metallurgist, manager, owner, director and managing director possessing
broad technical and practical experience of the workings and strategies
required by successful mining companies. Gary operates his own
consulting business, Strategic Metallurgy Pty Ltd, specialising in high level
metallurgical and strategic consulting.
Gary is a Member of the Australasian Institute of Mining and Metallurgy
and the Australian Institute of Company Directors.
Mr Julian “Joe” Walsh BEng, MSc
Managing Director (Executive) Appointed 22 September 2016
Mr Walsh is a resources industry executive, mining engineer and
geophysicist with more than 30 years’ experience working for mining
and exploration companies and investment banks in mining related
roles. Joe joined Lepidico as Managing Director in 2016. Prior to this he
was the General Manager Corporate Development with Pan Aust and
was instrumental in the evolution of PanAust from an explorer in 2004
to a US$2+billion, ASX 100 multi-mine copper and gold company. Joe
has extensive equity market experience and has been involved with the
technical and economic evaluation of many mining assets and companies
around the world.
Mr Mark Rodda BA, LLB
Non-Executive Director Appointed 24 August 2016
Mark is a lawyer and consultant with more than 20 years private practice,
in-house legal, company secretary and corporate experience. Mr Rodda
has considerable practical experience in the management of local and
international mergers and acquisitions, divestments, exploration and
project joint ventures, strategic alliances, corporate and project financing
transactions and corporate restructuring initiatives. Mark currently
manages Napier Capital Pty Ltd, a business established in 2008 to provide
clients with specialist corporate services and assistance with transactional
or strategic projects. Prior to its 2007 takeover by Norilsk Nickel, for
in excess of $6 billion, Mark held the position of General Counsel and
Corporate Secretary for LionOre International Ltd, a company with
operations in Australia and Africa and listings on the TSX, LSE and ASX.
Ms Cynthia Thomas B.Com, MBA
Non-Executive Director Appointed 10 January 2018
Ms Thomas has more than 30 years of banking and mine finance
experience and is currently the Principal of Conseil Advisory Services Inc.
(Conseil), an independent financial advisory firm specialising in the natural
resource industry which she founded in 2000. Prior to founding Conseil,
Cynthia worked with Bank of Montreal, Scotiabank and ScotiaMcLeod in
the corporate and investment banking divisions. Cynthia holds a Bachelor
of Commerce degree from the University of Toronto and a Masters in
Business Administration from the University of Western Ontario.
22
2022 LEPIDICO ANNUAL REPORT
Key Management
Ms Shontel Norgate
Chief Financial Officer, Joint Company Secretary Appointed 14 November 2016
Shontel is a Chartered Accountant with over 20 years’ experience in the
resources industry including debt and equity finance, financial reporting,
project management, corporate governance, commercial negotiations
experience in finance and administration. Prior to joining Lepidico, Shontel
was CFO for 10 years with TSX-listed resources company Nautilus
Minerals Inc. Prior to her appointment at Nautilus Minerals, Ms. Norgate
was Financial Controller with Macarthur Coal Ltd and Southern Pacific NL,
both listed on the ASX and commenced her career as an auditor with Price
Waterhouse (now PriceWaterhouseCoopers).
Mr Hans Daniels BSc eng
General Manager Operations UAE Appointed 11 July 2022
Hans is a chemical engineer with a well-developed career in manufacturing.
Prior to him joining of Lepidico in July 2022, he was the Global Leader
Physical Products of Songwon Industrial Group. He began his career at
Songwon in 2013 as the key figure in the construction and start-up of the
state-of-the-art manufacturing plant in Abu Dhabi.
Besides managing operations in Abu Dhabi, Hans was also responsible
for overseeing the successful running of Songwon’s OPS manufacturing
plants worldwide.
Prior to Songwon, Hans gained many years of industry experience in
production, logistics and management with the global specialty chemicals
and performance materials leader, Cabot. This after a stint at Fluor, one of
the world’s largest engineering, procurement, fabrication, construction and
maintenance companies.
Hans holds a Bachelor of Science (B.Sc.) in Chemical Engineering from
The Hague University of Applied Sciences.
Mr Tom Dukovcic BSc, FCA (ICAEW), FCIS
General Manager – Geology Appointed 22 April 1999
Tom is a geologist with more than 30 years’ experience in exploration and
development. He has worked on a range of commodities in diverse regions
throughout Australia and internationally and has been directly involved with
the management of gold discoveries in Australia and Brazil. Tom is a member
of the Australian Institute of Geoscientists and a Member of the Australian
Institute of Company Directors.
Mr Timo Ipangelwa
General Manager Operations Namibia Appointed 1 August 2022
Mr. Timotheus (Timo) Ipangelwa is an experienced mining engineer and
company executive. An alumnus of the University of the Witwatersrand, he
is currently pursuing a Master of Business Administration with the University
of the Stellenbosch Business School. Before joining Lipidico Timo served for
8 years as Mining Head for the Husab open pit mine operated by Swakop
Uranium, where he was responsible for operational readiness for project start-
up, recruitment, commissioning, ramp-up to design capacity and operational
improvement. Prior to this Timo worked in various technical, operational and
management roles for Namdeb Diamond Corporation (Pty) Ltd, Navachab
Gold Mine (AngloGold Ashanti Limited) and Vedanta’s Skorpion Zinc Mine. His
interest for the people of Namibia, safety and for the overall improvement of
the mining industry in the country has transcended his mining career Roles.
Timo serves as a Commissioner for the Mineral Ancillary Rights in Namibia,
as Deputy Chairperson – National Steering Committee Meeting for Centre for
Mining Metallurgical Research and Training (CMMRT) and on the Curriculum
advisory board of the Mining Engineering Department at Namibia University of
Science and Technology.
23
2022 LEPIDICO ANNUAL REPORT
Key Management (continued)
Ms Benedicta Uris
Candidate MSc Sustainable Development, MBA, MMGT: HSE
General Manager Sustainability & Country Affairs Namibia Appointed 20th April 2022
Benedicta has over 20 years’ experience working in occupational health,
safety and environmental roles, including stakeholder engagement and
community development. She started her career in the field in Shell Upstream
and subsequently moved to Shell Downstream in HSEC roles covering the
Africa region and eventually the Global Supply & Distribution business as EHS
Planning and Strategy lead, based in the UK. Moving to the mining industry, she
held similar roles in Rio Tinto, and most recently was the Director ESG at the
Dundee Precious Metals Tsumeb smelter. She is currently a candidate for the
MSc Sustainable Development (University of Sussex).
Mr Roland “Roly” Wells ARMIT(Civil), ARMIT(Mining), FAusIMM, GAICD
Project Director (Executive) Appointed 01 September 2022
Mr Wells is a resources industry development executive with over 30 years’
hands-on leadership experience in the development of multi-discipline
Australian and international, greenfield and brownfield mine and processing
plant projects. Roly has undertaken projects in isolated areas of Mali, North
Queensland, Western Australia and PNG as well as in rural areas of China and
Ireland. Roly has successfully completed three start-up projects for Australian
publicly listed mining companies embarking on their first projects in Papua New
Guinea, Queensland and New South Wales.
Mr Alex Neuling
Joint Company Secretary Appointed 30 September 2016
Alex is a Chartered Accountant and Chartered Secretary with extensive
corporate and financial experience including as director, chief financial officer
and/or company secretary of a number of ASX-listed companies in the mineral
exploration, mining, oil and gas and other sectors. Alex is principal of Erasmus
Consulting, which provides company secretarial and financial management
consultancy services two several ASX-listed companies. In addition to his
professional qualifications, Alex also holds a degree in Chemistry from the
University of Leeds in the United Kingdom.
24
2022 LEPIDICO ANNUAL REPORT
Sustainability
2022 Achievements
• No recordable health and safety
incidents were recorded in 2022:
Lepidico maintains its zero-harm
Health & Safety performance since
records began in September 2016.
• Land use footprint in Namibia
maximises use of previously disturbed
mining areas. The UAE plant, within a
designated industrial park, occupies
just 5.7 hectares.
• General Manager Sustainability,
• Lepidico now complies with all
Benedicta Uris, appointed based
in Namibia, demonstrating our
commitment to sustainable
development and Good International
Industry Practice.
• Over 800 direct and indirect jobs are
planned to be created in the Karibib
district for the Phase 1 operations,
equivalent to 15% of the local
population where unemployment is
estimated at 30%, thereby providing
significant socio-economic benefits.
• Long term environmental benefits
associated with the planned
Karibib mine and concentrator
redevelopments led to their
assessment as a Category B1 Project
in terms of the Equator Principles and
International Finance Corporation
(IFC) processes.
• Phase 1 greenhouse gas (GHG)
emissions are, “low compared with
other emission intensities reported
or derived from lithium hydroxide
production facilities”, according to a
third-party evaluation.
• Green hydrogen manufacture is
being fast-tracked at KIZAD, which
could lead to integrated Phase 1
Scope 1 and 2 emissions falling by
60% to best in class performance of
c. 3.0tCO2-e/t LCE.
• Water use for the vertically-integrated
project lithium hydroxide production
is estimated at just 33m3/t LCE, with
85% of water designed to be recycled
for the Namibian operations with
natural aquifer regeneration data
exceeding nett extraction.
ASX Principles of Good Corporate
Governance and Best Practice
Recommendations that can
be achieved with the current
Board composition, with further
improvement envisaged as skills are
added to meet business growth plans.
• Australian not for profit organisation
Ellect completed gender equality
ratings for all ASX listed companies,
with Lepidico having a score in the
top 5% based on its Board and key
management composition.
• Lepidico remains committed
to the Initiative for Responsible
Mining Assurance (IRMA) for
independent third-party verification
and certification on social and
environmental performance
standards. Work commenced to get to
IRMA-ready status.
• Community initiatives: a business
registration and entrepreneurship
workshop for women and youth was
held in the town of Otjimbingwe,
Namibia; and fire and water trailers
were acquired to service the Karibib
site and local farmer community,
where there have been instances of
scrub fires.
• In line with Namibian Chamber
of Mines guidelines relating to
community investment in non-
mining regions in the country, the
Tukwafela Sewing project was
supported with an Industrial Sewing
Machine and Materials. The project
was established and run by a group
of unemployed women.
1 It is classified as Category A by the US Development Finance Corporation, which classifies all mining projects under this category.
25
2022 LEPIDICO ANNUAL REPORT Sustainability
Key Actions Discussion
Environmental stewardship, social responsibility
and corporate governance are key tenants for
any sustainable business. Stakeholders, be they
governments, local communities, investors,
financiers, customers or suppliers, require visibility in
these areas in order to effectively manage their own
affairs and report effectively.
Greenhouse Gas
Emissions, Energy
Management and
Climate Impact
Summary:
Lepidico requires the same reciprocity from its
stakeholders, ensuring ethical practice throughout
the supply chains we participate in.
Environmental Stewardship
Phase 1 greenhouse gas emissions represent
the sole material impact to the climate. Relative
to other hard-rock lithium production these
emissions are low, with opportunities identified to
make the Project best-in-class within the industry.
Governments around the world are enforcing ever
more stringent greenhouse gas emissions standards
on electric vehicle manufacturers (OEMs), which
includes emissions associated with the raw materials
they employ. For lithium chemical suppliers this
ethical sourcing extends to evaluation of water and
land usage, both of which can be challenging for
certain types of lithium deposits and processes.
Lepidico’s Phase 1 Project has relatively low
greenhouse gas emissions, modest water usage,
and a small land disturbance footprint.
Coupled with environmental improvements in Namibia
at the end of mine life - and there being no production
of sodium sulphate from our chemical conversion
plant - leads us to believe Phase 1’s aggregate
environmental credentials are industry-leading.
One environmental incident was recorded during
the year. A scrub fire was started just outside the
Mining Lease and EPL areas by a grader contracted
by Lepidico to develop fire breaks along access
roads to site. The fire was brought under control
with no injury or impacts to local farmer livestock.
The incident was investigated and revisions to
procedures implemented to prevent a recurrence.
Scrub fires remain a significant risk during dry
seasons that follow higher rainfall wet seasons such
as occurred in 2022.
A carbon footprint assessment of the integrated
Phase 1 Project Definitive Feasibility Study (DFS) was
completed in 2021 by leading industry consultant
GHD Pty Ltd (GHD).
Scope 1 and 22 emissions intensity from the Abu
Dhabi chemical conversion plant is 7.46t CO2 e/t3
lithium hydroxide, which GHD advised as being, “low
compared with other emission intensities reported or
derived from lithium hydroxide production facilities.”
Upstream mining and mineral concentration at
Karibib have an emissions intensity of 0.13t CO2-e/t
concentrate (1.37t CO2-e/t lithium hydroxide), which
is, “comparable with other similar lithium mine and
concentrator projects.”
While the DFS designs evaluated incorporate
energy efficient technologies including waste heat
recycling, Lepidico has since identified several new
paths to substantially reduce implied CO2 emissions.
Together, these may reduce to impact to less than
3.0t CO2-e/t LCE.
The main source of Phase 1 GHG emissions (60%)
is the use of natural gas in the KIZAD chemical plant
boiler. While solar pre-heating of boiler feed water
will incrementally reduce gas consumption, the
greater prize is to futureproof the plant by installing a
hydrogen-enabled or hydrogen-ready boiler. This will
allow the decarbonisation of all process heat when
burning green hydrogen.
The United Arab Emirates is set to become a world
leader in green hydrogen manufacture with the Abu
Dhabi National Energy Co (TAQA) and Abu Dhabi
Ports (ADP) announcing plans for a green hydrogen
and ammonia facility at KIZAD, with electrolyzers
powered by a 2GW single site solar power plant.
2 Scope 1 covers direct emissions from owned or controlled sources. Scope 2 covers indirect emissions from the generation of purchased electricity,
steam, heating and cooling consumed by the reporting company. Scope 3 includes all other indirect emissions that occur in a company's value chain.
3 Tonnes of carbon dioxide equivalent.
26
2022 LEPIDICO ANNUAL REPORT
The TAQA KIZAD Solar PV Park is a 2.0GW solar
PV power project which is planned to commission
in 2025. The US$1.84 billion project, which should
provide solar power to KIZAD is being developed
jointly by TAQA and ADP. Access to such renewable
power coupled with existing non-greenhouse gas
emitting base load should allow Phase 1 chemical
plant Scope 2 emissions to be reduced to zero.
Other green hydrogen initiatives within KIZAD are
also on the drawing board.
At Karibib, the largest single Scope 1 emission is
associated with diesel fuel usage, of which 28%
will be consumed by trucks hauling ore and mine
waste. Electrification of this small truck fleet is
envisaged via equipment lease once suitable units
become available.
Grid power supplied at Karibib already includes a
significant renewable component with more projects
planned in the coming years. By 2025 it is estimated
that 80% of power will be generated from renewable
sources. The UAE is also committed to progressively
decarbonising it’s grid with 25% of non-fossil fuel
supply planned by 2023.
Integrated Phase 1 DFS Scope 1 & 2 emissions and reduction opportunities
Source
Scope 1
Scope 2
Scope 1
Scope 2
Comment
DFS
Opportunity
Diesel: mine haulage
1,589
Diesel: other
4,075
Wastewater treatment
20
0
4,075
20
Grid power
2,273
Karibib sub-total
5,684
2,273
4,095
Natural gas (heat)
31,292
Process CO2
13,281
Diesel
698
Grid power
UAE sub-total
Total
7,419
7,419
9,692
45,271
50,955
Source: GHD and Lepidico estimates
0
13,281
698
13,979
18,074
Electric mine haulage trucks
Part electrification of mobile/
fixed plant to be assessed
To be assessed
Off-grid modular concentrated
solar power
Intensity: 0.7t CO2-e/t LCE
Green hydrogen enabled boiler
with solar pre-heat
Potential to reduce if lithium
carbonate produced
Part electrification of mobile
plant to be assessed
Off-grid modular concentrated
solar power
Intensity 2.3t CO2-e/t LCE
Intensity 3.0t CO2-e/t LCE
0
0
0
0
0
27
2022 LEPIDICO ANNUAL REPORT Sustainability
Emissions through the entire lithium hydroxide
monohydrate manufacture chain was assessed by
GHD based on a literature review. It sourced data for
South American brine production, Australian mined
spodumene processed in China and other integrated
international lithium hydroxide refineries.
Emission savings relating to use of caesium and
rubidium compounds have not been quantified.
However, some key uses of caesium sulphate lead
to reduced energy consumption and enhanced yield
thereby reducing net associated emissions.
Lepidico data is for the integrated Phase 1 Project
at steady state operation. It includes our initial
CO2 reduction target of 2.0t CO2-e/t, based on a
greater proportion of power being sourced from
non-greenhouse gas generating sources and solar
pre-heating of boiler water to reduce natural gas
consumption.
Further reduction targets will be set once there is
greater clarity on the availability of green hydrogen
in the UAE and once renewable power alternatives
have been assessed.
Figure 2: CO2 intensity comparison for lithium
hydroxide production tCO2-e/t lithium hydroxide
.
2
O
H
H
O
i
L
t
/
e
-
2
O
C
t
16
14
12
10
8
6
4
2
0
Brine
Integrated
Spodumene
Australia-China
Spodumene
Lepidico
Integrated
Low/Target
Range
Source: GHD data
As advised previously, preliminary Scope 3 emissions
estimates for transport of concentrate from Namibia
to UAE and transport of products and by-products
are only 6,732 and 2,507t CO2-e respectively.
The L-Max® process will produce valuable by-
products including caesium sulphate, rubidium
sulphate, amorphous silica, sulphate of potash
and a gypsum rich residue. GHD estimated the
potential emissions savings to be approximately
34,009t CO2-e per year. This would offset a material
proportion of envisaged overall annual Scope 3
inventory emissions.
28
Scope 3 emissions will be fully assessed once
operations commence, when individual supplier
and customer details, importantly including
logistics are known.
At its pre-development stage, Lepidico’s carbon
emissions are largely associated with air travel and
exploration activities, predominantly drilling. In
fiscal 2022 air travel resumed after being curtailed
the previous year with an estimated 172t of CO2-e
emissions associated with business travel, compared
with 501t in 2020 and 285t in 2019. Exploration is
estimated to have generated 116.1 tonnes CO2-e
Scope 1 emissions in 2022, which includes a drilling
program that started late the previous year Minimal
GHG generating activities were undertaken in 2021
as most filed programs were suspended due to
COVID-19.
Water Management
Summary:
The impact on water availability at Karibib is
projected to be zero, with ongoing monitoring to
confirm this. While the Abu Dhabi chemical plant
will consume more water, any future use of green
hydrogen would produce water, thereby reducing
consumption.
Over the first four years of manufacture of
all products total water consumption for the
integrated operations is estimated in the DFS to
be 415,000m3 annually.
Less than 20% of this total, 80,000m3, is at Karibib,
where approximately 85% of the concentrator
water requirement is recycled via filtration of both
concentrate product and tailings. Water is lost to
evaporation, seepage, and concentrate and tailings
filter cakes.
Water at Karibib will be sourced from four in-ground
bores, three of which are located 3.5km from
Rubicon and are active, with submersible pumps,
powered by dedicated solar arrays.
Lepidico’s water permit was granted in 2017 and
allows for 210,000m3 to be extracted annually,
which is sufficient for a future doubling of
concentrate production. Groundwater modelling
2022 LEPIDICO ANNUAL REPORT
Sustainability
indicates that natural meteoric recharge should
more than replace the maximum capacity
contemplated under the permit. Ongoing aquifer
monitoring will be employed to confirm this. Water
consumption during 2022 amounted to 15,319m3
including use by local farmers.
Land Use, Waste
Management &
Biodiversity
Summary:
Environmental land use impacts are
predominantly limited to the Namibian operations.
Lepidico’s closure plan will correct previous
environmental remediation shortcomings,
returning the land to agricultural use and making
material improvements to the environment.
Karibib was mined at various times during the 20th
century, largely for petalite. As such, it represents a
brownfield development.
Although no closure of these industrial sites has
been undertaken previously, Lepidico’s plans include
formal mine closure - with the aim of rectifying
environmental legacy issues and returning the land to
agricultural use.
Phase 1 activities at Karibib are confined to an area
of 962 hectares within the 69km2 mining lease (ML
204). Within this, the areas for actual development
will be far smaller with the majority of the footprint
allocated to ground previously disturbed by historical
mining activities.
Importantly, the mining lease area is sparsely
populated with no permanent dwellings within the
planned Phase 1 operations area.
Chemical conversion in Abu Dhabi is estimated
to consume 315,000m3 of water annually, nett
of recycling. Evaporative losses attributed to
evaporators, crystallisers, dryers, the cooling system
and residue streams are significant and therefore
apportioned back to the individual products where
these unit processes are employed.
The balance of the nett water consumed is
associated with common services which are
apportioned to each product based on revenue
contribution. Karibib consumption is also allocated
according to chemical plant revenue.
Raw water at KIZAD is mainly produced by
desalination currently, most of which is powered
by waste heat from gas fired power stations. The
balance of water consumed in the UAE is sourced
from dams and water harvesting.
Employing green hydrogen to fuel the boiler will
produce water that would be reclaimed for use in
the plant, thereby reducing consumption.
Integrated operations water
consumption product allocation
Consumption
%
Consumption
rate M3/t LCE
Lithium hydroxide
Rubidium sulphate
SOP
Gypsum
Amorphous silica
Caesium sulphate
44
32
10
5
5
4
33
24
8
4
4
3
Grass land on the Okongava farm within EPL 5439
29
2022 LEPIDICO ANNUAL REPORT
Sustainability
An ESIA and ESMP for the Karibib Operations were
completed in July 2020 by Risk-Based Solutions CC,
a leading Namibian environmental consultancy. The
author, Dr Sindila Mwiya, has undertaken more than
200 environmental projects for Namibian, Continental
African and International clients.
It was concluded in the ESIA and ESMP that our
plans comply with the provisions of Namibian mining
and environmental legislation and accord with the
Equator Principles and IFC Performance Standards
on Social and Environmental Sustainability.
Importantly, Karibib is designated in the ESIA as a
Category B Project, defined as:
“ Business activities with potential
limited adverse environmental
or social risks and/or impacts
that are few in number, generally
site-specific, largely reversible,
and readily addressed through
mitigation measures.”
As advised previously, the ESIA found that, “the
proposed Karibib Project development in the ML 204
poses localised negative impacts to the receiving
environment with greater offset /trade-offs/ benefits
in the form of socioeconomic and environmental
reclamation of the currently abandoned mine sites.
The extent of the proposed mining and minerals
processing and ongoing exploration operations are
limited in area extent with respect to the ore body,
the Rubicon and Helikon 1 pits and supporting
infrastructures areas.”
Karibib operations do not require a dedicated tailings
storage facility. Tailings from the concentrator will
be dewatered and co-disposed with mine waste
rock thereby filling the natural voids. Both tailings
and waste have been assessed as environmentally
benign, and there is no requirement for lining the
waste management areas.
The Phase 1 chemical plant site is just 57,000m2 and
is located within an industrial free zone, which allows
full foreign ownership as well as tax exemptions
on imports and exports. Off-site infrastructure is
supplied through a land lease agreement with Abu
Dhabi Ports, which manages KIZAD, and includes
direct connection to existing infrastructure; natural
gas, 11kV power, potable water, and sewer services,
roads, and drainage. The KIZAD container port
where concentrate from Walvis Bay, Namibia will be
imported is 15km by road from the plant site.
An ESIA was also completed for the chemical plant
in 2021 which accords with the Equator Principles
and IFC Performance Standards on Social and
Environmental Sustainability.
Schematic of proposed chemical plant site.
30
2022 LEPIDICO ANNUAL REPORT
Sustainability
Social Responsibility
Workforce Health & Safety
Lepidico is committed to the health, safety and
wellness of its workforce and has achieved zero
harm performance at its controlled sites since data
collection began in September 2016.
Lost Time Injury Frequency Rate (LTIFR), - and Total
Recordable Incidents Frequency Rate (TRIFR) all
continue to be zero.
As previously advised, site operations were
temporarily suspended in June 2021 and the
Karibib camp closed due to multiple cases of
COVID-19 amongst the workforce. All cases had
mild symptoms with our colleagues making a
swift and full recovery. The camp was fumigated
and cleaned, and further precautionary protocols
introduced prior to resumption of operations mid-
July 2021. Over the course of the year COVID-19
protocols were progressively relaxed consistent
with government guidelines.
Community Engagement, Empowerment
& Investment
Lepidico conducted its first Socio-Economic
Baseline Study in March 2020, focused on the
communities in the broader Karibib district. This
revealed three broad categories of support in need
of prioritisation:
1. Projects/investments with high employment
creation potential – to be aligned to the relatively
abundant and diverse local labour force.
2. Well-equipped vocational centres for tailor-made
training/skills enhancement, targeting unemployed
youth and women.
3. Diversification and value addition initiatives for
food security enhancement and poverty alleviation,
targeting vulnerable groups and farmers.
Based on several stakeholders’ meetings and the
Socio-Economic Baseline assessments, five key
objectives were developed where Lepidico can add
the greatest value in its support of local communities:
1. Reaching compliance: taking a systemic and
strategic approach towards sustainability to do no
harm and stop making tomorrow’s legacies today.
2. Improved local governance to effectively deliver
basic services and development.
3. Infrastructure development and support to
improve the lives of Karibib, Otjimbingwe and
Okongava farm residents.
4. Local economic development for business and
job creation with a focus on agriculture, youth and
women’s projects.
5. Support to Education development.
These objectives will be achieved through both
shorter-term components of work, which started
in 2021 and longer-term components that involve
greater stakeholder participation and consultation in
their scoping and implementation. Six projects were
outlined in consultation with local stakeholders for
action in 2022, with a budget of US$20,000.
Fire and water trailers were acquired and equipped
for the Karibib Operations, to service both the site
and local farmer community, where there have been
instances of scrub fires. This equipment was used
to control the scrub fire that occurred in 2022 as
advised above.
In consultation with the Traditional Authority,
Lepidico completed a micro-finance project to
support disadvantaged women in the nearby town of
Otjimbingwe. Chicken coups, livestock and animal
husbandry and vegetable gardening training has
been proviously.
A business registration and entrepreneurship
workshop for women and youth was also held in the
town of Otjimbingwe. The workshop was attended
by recipients of existing Lepidico micro-finance
projects as well as 23 women and youths who
showed keen interest in starting micro-businesses.
Secondly, supporting information has been received
from the Ministry of Health and Social Services for
a new maternity space at the Otjimbingwe clinic
to allow a funding proposal to be completed, with
implementation planned for the 2023 fiscal year.
The Company also continued to supply water under
its abstraction licence to local farmers for their
livestock.
In the longer term, Karibib operations are expected
to provide significant benefit to the communities
in the region through both direct and indirect
employment. Lepidico expects to recruit 115 full
time employees, many of whom will come from local
communities, where the population is estimated to
be approximately 5,000.
31
2022 LEPIDICO ANNUAL REPORT Sustainability
Indirect employment is estimated to result in a further
800 jobs being created within the community.
In addition, all job descriptions and job titles are
gender neutral and inclusive.
Stakeholder Engagement
Identification and understanding our stakeholders’
needs, concerns and views are important to us and
this process is continuously reviewed and updated
through our stakeholder engagement process. In
addition, the company has a grievance mechanism
that ensures that stakeholder complaints are dealt
with in a transparent manner. In addition, our Whistle
Blower Policy ensures that employees and other
stakeholders are protected when reporting non-
compliance with our policies.
Corporate Governance
Our Board composition brings together a balanced
team of experienced financial, technical and
operations professionals. The Board works closely
with the Lepidico management team to guide the
company and has oversight of Lepidico’s ESG
strategy.
Lepidico complies with all of the 4th edition of the
ASX Principles of Good Corporate Governance
and Best Practice Recommendations that can be
achieved with the current Board composition, with
further improvement envisaged as skills are added to
meet business growth plans (refer to the Corporate
Governance Statement for further detail).
Lepidico continues to implement improvements to
our Corporate Governance system as the company
grows in complexity to meet our development needs.
Governance principles adopted at the head company
level are cascaded, as appropriate, to the Company’s
operations in the UAE and Namibia.
The Diversity Committee, established in 2020,
reviewed its progress against the FY2022
measurable objectives and set new objectives for
FY2023. We continued to benchmark and track
gender diversity against our peers and remain
committed to providing flexible work and salary
arrangements to accommodate family commitments,
study and self-improvement goals, cultural traditions
and other personal choices of our employees.
Australian not for profit organisation, Ellect (www.
ellect.biz), helps companies achieve diversity, equity
and inclusion in their business as part of their ESG
goals. Ellect has completed gender equality ratings
for all ASX listed companies, with Lepidico having
a score in the top 5% based on its Board and key
management composition.
Sustainability Policy and Risk
The Company takes a “top-down” approach, with a
developed corporate risk register including a residual
risk rating for all implemented actions and controls.
The register covers corporate, exploration, technical
evaluation and project implementations. Entries
are based on the critical tasks identified in the
Company’s Strategic Plan and ranked by residual
risk rating.
The document is reviewed annually, whilst major
risks and management plans are reviewed at
Board meetings. The major risks that the company
manages include; ongoing financing for project
development, securing offtake contracts for products
and project implementation risks.
The proportion of women employed by Lepidico as at 30 June 2022 is listed below:
Level
Non-Executive Directors
Senior Executive Positions (including Executive Director)1
Management
Non-Management
All Employees2
2022
33%
40%
0%
31%
30%
1.
2.
“Senior Executive” for the purpose of gender representation is defined to mean the Managing Director and
his direct reports.
Includes full-time, part-time and regular casual employees.
32
2022 LEPIDICO ANNUAL REPORT Sustainability
Shareholder Engagement
In 2022 Lepidico continued its relationship with
Edison Group to cover investor relations with a
focus on digital engagement including social media,
complemented by their existing equity research.
The executive management team regularly engage
with the investment community in Australia and in
other major financial centres globally. Resumption of
business travel in 2022 allowed in person meetings
to again take place, however, virtual meetings
continue to predominate thereby reducing travel
related GHG emissions. There is ongoing dialogue
with shareholders, brokers, financial analysts,
prospective institutional investors, family offices,
private equity and sovereign wealth funds, and
prospective strategic investors around the world.
We believe that Lepidico has international investment
appeal. The company is committed to enhancing
its global investability by delivering on its stated
strategy from its platform on the Australian Securities
Exchange (ASX).
Lepidico has established a suite of Corporate
Governance documents and Charters to meet
ASX standard disclosure requirements, which are
available at the Company’s website. Development of
further Policy and Standards to meet the Company’s
needs as it grows is a priority for 2023.
Intellectual Property
At 30 June 2022, the Company held granted patents
for its L-Max® technology in the United States,
Europe, Japan and Australia, along with an Innovation
Patent in Australia. National phase patent applications
are well advanced in the other key jurisdictions, with
these processes expected to continue during calendar
year 2022. The Company also has a patent granted
for its process technology for lithium recovery from
phosphate minerals (amblygonite) from the United
States, Japan and Australia.
The national and regional phase of the patent
application process is progressing for LOH-Max®
under PCT/AU2020/050090. The S-Max® national
phase patent applications are progressing under
PCT/AU2019/050317 and PCT/AU2019/050318. In
addition, the national and regional phase of the patent
application process for the production of caesium,
rubidium and potassium brines and other formates
is continuing under PCT/AU2019/051024. The
national and regional phase applications for the above
processes are expected to continue beyond 2022.
On 1 April 2022, the Company progressed with
an International application under the Patent
Cooperation Treaty (PCT) and was allotted the
number PCT/AU2022/050297 for the lithium
carbonate recovery process from a raw lithium
hydroxide material.
On 1 October 2021 a provisional patent application
was filed for the preparation of Cs-Rb-K alkali salt
solutions from lithium mica mineral source material.
This refining process has application in tailoring
ternary materials for industrial catalyst applications.
The Nature of our Markets
Markets for lithium chemicals, SOP and
supplementary cementitious materials such as
amorphous silica have scale and are generally
considered to be free markets.
The caesium and rubidium markets by contrast are
small and opaque with production concentrated
amongst just two size producers globally. It is
understood that in 2022 one of these chemical
manufacturers will cease production following
depletion of its sole source of primary mineral feed.
Caesium, rubidium and lithium chemicals are all
on the U.S. Government list of Critical Minerals.
Caesium and rubidium are a subset for which the
U.S. is 100% reliant on imports and where the
markets are sufficiently concentrated that they are
effectively controlled by a single nation.
Lepidico aims to bring new sustainable and ethical
sources of these Critical Minerals to the market.
Sustainability
Reporting
The aim of this fourth sustainability report is to
discuss management’s approach to environmental
and social responsibility initiatives and how these
continue to be integrated into our sustainable
business strategy. As with prior years, this report is
not a full sustainability report, but rather an insight
into the sustainability approach and initiatives
Lepidico is undertaking as it transitions from its
pre-development stage into an active alkali metals
chemical producer.
Lepidico is committed to developing a sustainable
lithium business providing high quality products
whilst minimising environmental and social impacts,
with a particular focus on climate and biosphere
stewardship.
33
2022 LEPIDICO ANNUAL REPORT
Sustainability
Building sustainability into our systems, values,
management practices, behaviours and governance
arrangements within a rapidly changing and
challenging global environment is embedded within
our approach to strategic planning.
We have also embraced the opportunity to integrate
social, economic, environmental, and health and
safety best practices into project design criteria,
while minimising business risks. This is evidenced by
ESIAs being aligned with the Equator Principles and
IFC Performance Standards, when prevailing local
regulatory requirements are far less stringent.
Once the business transitions, detailed sustainability
performance data metrics will be captured from our
operations and contractors. Accordingly, we believe
the appropriate timing for full sustainability disclosure
will be the year following the commissioning of the
Phase 1 Project, currently scheduled to start in
calendar 2024.
Our understanding of the material issues for each
business unit have become clearer as Phase 1
FEED works near completion and will continue to
do so as we progress regulatory approval processes
and gain input from our stakeholders, especially as
their expectations for the management of issues
evolves and becomes more complex. Our goal is
to be able to report our future activities against the
Global Reporting Initiative (GRI) Standards and in the
intervening years our systems will evolve to collect
the necessary data.
This report provides commentary on our Corporate
Social Responsibility (CSR) systems development,
commensurate with our risks and opportunities
and project development stage. We look forward to
sharing our experiences to date here, and further
disclosure in future reports, as we continue on
our sustainability journey. We undertake to further
engage with a wide group of stakeholders and
community groups at our project sites, and we
welcome their input and feedback on our CSR
reporting.
In 2022, Lepidico further developed its operating
management systems. Internal goals focus on
governance, occupational health and safety, the
environment and meeting project milestones. Both
the exploration and project development groups
report against these indicators and a summary is
tabulated on pge 36.
Okongawa farmer, Mr G Kamajove and his family - demonstrating mining
and farming effective co-existence
34
2022 LEPIDICO ANNUAL REPORT Sustainability
Rudolphine Uiras - Lepidico employee from the local Otjimbingwe community
35
2022 LEPIDICO ANNUAL REPORT Sustainability
Goal
Governance
Outcome
Comments
Governance Statement
Compliance
In compliance as per ASX statement
Mining & Exploration licenses and
related permits
Occupational Health & Safety
Compliance
In compliance as per license conditions in Namibia
Zero Fatalities
Zero Lost Time Incidents
Zero Medical Treatment Incidents
Yes
Yes
Yes
No Fatalities
No LTIs
No MTIs
OHS Management System
Established
OHS Policy and OHS Management Plan.
Environment
Zero Reportable Incidents
Yes
Scrub fire environmental incident outside managed
sites associated with a contracted party. No
reportable spills or incidents at managed sites.
Environmental Management System Yes
Sustainable Development Policy in place.
Environmental Baseline Studies
Complete
ESIAs completed for Karibib operations and Abu
Dhabi chemical plant to IFC Environmental & Social
Standards.
Complete
ESMP completed for Karibib operations including
closure plan with Category B designation.
Ongoing
Independent greenhouse gas assessment completed
for Scope 1 & 2 emissions, Scope 3 pending start of
operations.
Operational Studies & Readiness
Waste minimisation
Ongoing
Implementation of filtered dry stacked tailings
co-disposal with mine waste – no dedicated TSF
required.
Renewable power studies
Ongoing
Hybrid renewable off-grid solutions being evaluated
for Karibib and Abu Dhabi.
Green hydrogen study
Ongoing
H2 enabled boiler review & Abu Dhabi H2 supply
study.
Social & Community
Communities
Ongoing
Corporate Social Responsibility
Ongoing
Namibian Ministry of Lands and Reformation
engaged to work together with Lepidico to develop a
formal land use agreement.
Community meetings to negotiate Cohabitation
Agreement with the involvement of traditional owners
and local farmers from the area.
CSR plan updated and social support programmes
developed for FY2022.
36
2022 LEPIDICO ANNUAL REPORT
Sustainability
Corporate Governance Statement
The Board of Directors of Lepidico Ltd (the “Company”) is responsible for the corporate governance of
the Company. The Board guides and monitors the business and affairs of the Company on behalf of the
shareholders by whom they are elected and to whom they are accountable.
This statement sets out the main corporate governance practices in place throughout the financial year in
accordance with the 4th edition of the ASX Principles of Good Corporate Governance and Best Practice
Recommendations.
This Statement was approved by the Board of Directors and is current as at 22 September 2022.
PRINCIPLE 1: LAY SOLID FOUNDATIONS FOR MANAGEMENT AND OVERSIGHT
ASX Recommendation 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.
The Company has complied with this recommendation.
The Board has adopted a formal charter that details the respective Board and management functions
and responsibilities. A copy of this Board charter is available in the corporate governance section of the
Company’s website at www.lepidico.com.
ASX Recommendation 1.2: A listed entity should
(a)
(b)
undertake appropriate checks before appointing a director or senior executive or putting
someone forward for election as a director; and
provide security holders with all material information in its possession relevant to a decision on
whether or not to elect or re-elect a director.
The Company has complied with this recommendation.
Information in relation to Directors seeking election and re-election is set out in the Directors report and
Notice of Annual General Meeting.
ASX Recommendation 1.3: A listed entity should have a written agreement with each director and
senior executive setting out the terms of their appointment.
The Company has complied with this recommendation.
The Company has in place written agreements with each Director and Senior Executive.
ASX Recommendation 1.4: The company secretary of a listed company should be accountable directly
to the Board, through the chair, on all matters to do with the proper functioning of the Board.
The Company has complied with this recommendation.
The Board Charter provides for the Company Secretary to be accountable directly to the Board through the Chair.
ASX Recommendation 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 executives and workforce generally; and
(c) disclose in relation to each reporting period:
(1)
the measurable objectives set for that period to achieve gender diversity;
(2)
the entity’s progress towards achieving those objectives; and
(3) either:
(A)
the respective proportions of men and women on the board, in senior executive positions
and across the whole workforce (including how the entity has defined “senior executive”
for these purposes); or
(B)
if the entity is a “relevant employer” under the Workplace Gender Equality Act, the entity’s
most recent “Gender Equality Indicators”, as defined in and published under that Act.
37
2022 LEPIDICO ANNUAL REPORT
If the entity was in the S&P / ASX 300 Index at the commencement of the reporting period, the
measurable objective for achieving gender diversity in the composition of its board should be to have
not less than 30% of its directors of each gender within a specified period.
The Company has complied with this recommendation.
The Company has adopted a Diversity Policy which is available in the corporate governance section of the
Company’s website at www.lepidico.com.
The table below sets out the measurable objectives for the 2022 financial year and provides details on the
progress of the Company toward achieving them:
Objective
Results
Work with industry specific groups and
companies in Namibia and the UAE to develop
more meaningful baseline diversity data.
Develop operational HR policies and
procedures for Namibia and the UAE that
support diversity in the jurisdictions in which
the Company will operate.
Ensuring that recruitment is made from a
diverse pool of qualified candidates. Where
appropriate, a professional recruitment firm
shall be engaged to select a diverse range of
suitably qualified candidates.
To ensure that in the interview process for each
Director and/or senior executive position there
is at least an equal number of females on the
interview panel.
Identify and support community led
programmes empowering women and that
prevent discrimination in the countries where
the Company operates.
Some relevant national data was sourced for Namibia
and the UAE from the consultants engaged to complete
the Environment and Social Impact Assessments for the
Phase 1 Project. Work continues to secure further data.
Management has engaged Twahangana Human
Resources Consulting in Namibia to develop
operational HR policies and procedures for Namibia
which will also be adapted for the UAE. Lepidico’s GM
Sustainability & Country Affairs - Namibia will assume
management for the development of these policies.
During the financial year the Company recruited three
General Manager positions: GM – Sustainability &
Country Affairs Namibia, GM Operations – UAE and GM
Operations – Namibia. External consultants were used
for all three positions with instructions provided to seek
a diverse range of candidates.
This protocol was adhered to for the three GM positions
recruited for.
Community programmes undertaken to date in FY2022
were predominately focused on health, in particular
COVID-19 prevention and detection. PPE donations
were made to the local medical clinic. Discussions are
underway to provide a maternity room adjacent to a
medical clinic in the Karibib region to provide a private
and safe environment for local woman to give birth.
The Company also funded the building of four chicken
coops and instruction on animal husbandry to develop
micro businesses within the local community, with a
focus on supporting women in the community.
Gender Representation
The proportion of women employed by the Company as at 30 June 2022 is listed below:
Level
Non-Executive Directors
Senior Executive Positions (including Executive Director)1
Management
Non-Management2
All Employees2
2022
33%
40%
0%
31%
30%
2021
33%
25%
0%
22%
33%
1 “Senior Executive” for the purpose of gender representation is defined to mean the Managing Director and his direct reports.
2 Includes full-time, part-time and regular casual employees.
38
2022 LEPIDICO ANNUAL REPORT
ASX Recommendation 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.
The Company has complied with this recommendation.
The Company’s Board Charter outlines the process for evaluating the performance of the Board and its
Committees.
In accordance with this process, Board evaluation questionnaires were provided to each member of the Board
in order to assess the performance of the individual Director, the Board as a whole, Committees of the Board
and the Managing Director. The completed questionnaires are provided to the Chair of the Nomination and
Remuneration Committee and are used by the Board to review and discuss the performance of the Board as a
whole, its Committees and individual Directors.
If it is apparent that there are problems which cannot be satisfactorily considered by the Board itself, the
Board may decide to engage an independent adviser to undertake this review.
A performance review was undertaken for the reporting period.
ASX Recommendation 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.
The Company has complied with this recommendation.
The Company has in place procedures for evaluating the performance of its senior executives overseen by the
Nomination and Remuneration Committee. 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.
A performance review was undertaken for the reporting period.
PRINCIPLE 2: STRUCTURE THE BOARD TO BE EFFECTIVE AND ADD VALUE
ASX Recommendation 2.1: The board of a listed entity should:
(a) have a nomination committee which:
(1) has at least three members, a majority of whom are independent directors; and
(2) chaired by an independent director;
and disclose:
(3) the charter of the committee;
(4) the members of the committee; and
(5) as at the end of each reporting period, the number of times the committee met throughout the
period and the individual attendances of the members at those meetings; or
(b) if it does not have a nomination committee, disclose that fact and the processes it employs to
address board succession issues and to ensure that the board has the appropriate balance of
skills, knowledge, experience, independence and diversity to enable it to discharge its duties and
responsibilities effectively.
The Company has complied with this recommendation.
The members of the Committee, the number of meetings held during the financial period and the individual
attendance of the members at those meetings are set out in the Directors’ Report included in the Lepidico
Annual Report.
A copy of the Committee’s Charter is available in the Corporate Governance section of the Company’s
website at www.lepidico.com.
39
2022 LEPIDICO ANNUAL REPORT ASX Recommendation 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.
The Company has complied with this recommendation.
The Board has established a skill matrix. On a collective basis the Board has the following skills:
Area
Board Skill and Experience
Strategic expertise
Specific industry knowledge
International experience
Accounting and finance
Legal and governance
Risk management
Sustainability
Ability to identify and critically assess strategic opportunities and threats
and develop strategies.
Experience as a Director, CEO, CFO or other officeholder or similar in
medium sized entities.
Senior executive, advisory or board experience in the resources sector
including exploration, mineral resource project development, mining
and mineral processing operations, and mineral/chemical process
development.
Relevant tertiary degree or professional qualification.
An understanding of the complexities of operating in foreign jurisdictions.
Experience in and exposure to multiple cultural, regulatory and business
environments.
Senior executive experience in financial accounting and reporting, or
business development or board remuneration and nomination committee
experience.
Relevant tertiary degree or professional qualification.
Board audit committee experience.
Ability to read and comprehend the Company’s accounts, financial
material presented to the Board, financial reporting requirements and an
understanding of corporate finance.
Relevant tertiary degree or professional qualification.
Listed entity board and/or committee experience.
Experience in organisations with a strong focus on and adherence to
governance standards.
Experience in general corporate, mining, fiscal and labour laws and/or
the ability to consider the legal requirements of the Company’s business
operations and transactions contemplated by the Company, across the
multiple jurisdictions in which it operates.
Ability to identify and monitor risks to which the Company is, or has the
potential to be, exposed.
Experience and knowledge of working on sustainability activities directly
and/or as part of operational responsibility.
Experience in tailoring environmental and social practices to local
requirements found in foreign jurisdictions and also adhere to recognised
industry best practices.
Experience with capital markets Experience in corporate finance and the equity/debt or capital markets.
Investor relations
Experience in identifying and establishing relationships with
shareholders, potential investors, institutions and equity analysts.
ASX Recommendation 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 or affiliation or relationship described in 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
40
2022 LEPIDICO ANNUAL REPORT (c) provide details in relation to the length of service of each Director.
The Company has complied with this recommendation.
In determining a Director's independence, the Board considers those relationships which may affect
independence as contained in the 4th edition of the ASX Corporate Governance Principles and
Recommendations.
In each case, the materiality of the interest, position, association or relationship is assessed to determine
whether it might interfere, or might reasonably be seen to interfere, with the Director’s capacity to bring an
independent judgment to bear on issues before the Board and to act in the best interests of the Company and
its security holders generally.
The Company Secretary maintains a register for the purposes of identifying the existence of any transactions
between the Director’s related parties and the Company and the impact (if any) such transactions (or other
factors) may have on a Director’s independence which is tabled at each Board Meeting.
The independence and length of service of each Director is as follows:
Director
Independent
Date of Appointment
Length of Service1
Mr Gary Johnson
Mr Julian (Joe) Walsh
Mr Mark Rodda
Ms Cynthia Thomas
No
No
Yes
Yes
9 June 2016
22 September 2016
22 August 2016
10 January 2018
6.1 years
5.8 years
5.9 years
4.5 years
1 Length of service is calculated to 30 June 2022
ASX Recommendation 2.4: The majority of the Board of a listed entity should be independent Directors.
The Company has not complied with this recommendation.
As in ASX recommendation 2.3, the majority of the Board is not considered to be independent.
The Board considers that its current composition is appropriate given the current size and stage of development
of the Company and allows for the best utilisation of the experience and expertise of its members.
Directors having a conflict of Interest in relation to a particular item of business must absent themselves from the
Board meeting before commencement of discussion on the topic.
ASX Recommendation 2.5: The Chair of a listed entity should be an independent Director and, in particular,
should not be the same person as the CEO of the entity.
The Company has not complied with this recommendation.
The Chair, Mr Gary Johnson is not considered to be an independent Director. Notwithstanding this the Directors
believe that Mr Johnson is able to, and does make, quality and independent judgement in the best interests of the
Company on all relevant issues before the Board.
Mr Joe Walsh is Managing Director of the Company.
ASX Recommendation 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.
The Company has complied with this recommendation.
The Nomination and Remuneration Committee has responsibility for the approval and review of induction
procedures for new appointees to the Board to ensure that they can effectively discharge their responsibilities
which will be facilitated by the Company Secretary.
The Nomination and Remuneration Committee is also responsible for the program for providing adequate
professional development opportunities for Directors and management.
PRINCIPLE 3: INSTIL A CULTURE OF ACTING LAWFULLY, ETHICALLY AND RESPONSIBLY
ASX Recommendation 3.1: A listed entity should articulate and disclose its values.
The Company has complied with this recommendation.
The Company’s strategy, vision and values is reviewed annually and available in the corporate governance
41
2022 LEPIDICO ANNUAL REPORT section of the Company’s website at www.lepidico.com.
ASX Recommendation 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.
The Company has complied with this recommendation.
The Company has a code of conduct that sets out the principles covering appropriate conduct in a variety
of contexts and outlines the minimum standard of behaviour expected from directors, senior executives and
employees.
A copy of the Company’s code of conduct is available in the corporate governance section of the Company’s
website at www.lepidico.com.
There were no material breaches of the code during the reporting period.
ASX Recommendation 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 incidents reported
under that policy.
The Company has complied with this recommendation.
The Company has a whistleblower policy and a copy is available in the corporate governance section of the
Company’s website at www.lepidico.com.
There were no material incidents reported under the whistleblower policy during the reporting period.
ASX Recommendation 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 incidents reported
under that policy.
The Company has complied with this recommendation.
The Company has an anti-bribery and corruption policy and a copy is available in the corporate governance
section of the Company’s website at www.lepidico.com.
There were no material incidents reported under the anti-bribery and corruption policy during the reporting period.
PRINCIPLE 4: SAFEGUARD INTEGRITY IN FINANCIAL REPORTING
ASX Recommendation 4.1: The Board of a listed entity should:
(a) have an audit committee which:
(1) has at least three members, all of whom are non-executive directors and a majority of which
are independent directors; and
(2) is chaired by an independent director, who is not the chair of the board;
and disclose:
(3) the charter of the committee,
(4) the relevant qualifications and experience of the members of the committee; and
(5) In relation to each reporting period, the number of times the committee met throughout the
period and the individual attendances of the members at those meetings; or
(b)
If it does not have an audit committee, disclose that fact and the processes it employs that
independently verify and safeguard the integrity of its corporate reporting, including the
processes for the appointment and removal of the external auditor and the rotation of the audit
engagement partner.
The Company has complied with this recommendation.
A copy of the Audit and Risk Committee Charter is available in the Corporate Governance section of the
Company's website at www.lepidico.com.
The relevant qualifications and experience of the members of the Audit and Risk Committee, the number of
times the Committee met during the financial period and the individual attendances of the members at those
meetings are set out in the Directors’ Report included in the Lepidico Annual Report.
42
2022 LEPIDICO ANNUAL REPORT
ASX Recommendation 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.
The Company has complied with this recommendation.
ASX Recommendation 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 the external auditor.
The Company has complied with this recommendation.
Where a periodic corporate report is not required to be audited or reviewed by an external auditor, Lepidico
conducts an internal verification process to confirm the integrity of the report, to ensure that the content of the
report is materially accurate and provides investors with appropriate information to make informed investment
decisions.
PRINCIPLE 5: MAKE TIMELY AND BALANCED DISCLOSURE
ASX Recommendation 5.1: A listed entity should have and disclose a written policy for complying with
its continuous disclosure obligations under listing rule 3.1.
The Company has complied with this recommendation.
A copy of the Continuous Disclosure Policy is available in the Corporate Governance section of the Company's
website at www.lepidico.com.
ASX Recommendation 5.2: A listed entity should ensure that its board receives copies of all material
market announcements promptly after they have been made.
The Company has complied with this recommendation.
ASX Recommendation 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 that presentation.
The Company has complied with this recommendation.
PRINCIPLE 6: RESPECT THE RIGHTS OF SECURITY HOLDERS
ASX Recommendation 6.1: A listed entity should provide information about itself and its governance to
investors via its website.
The Company has complied with this recommendation.
The Company’s website at www.lepidico.com contains information about the Company’s projects, Directors
and management and the Company’s corporate governance practices, policies and charters. All ASX
announcements made to the market, including annual and half year financial results are posted on the website
as soon as they have been released by the ASX. The full text of all notices of meetings and explanatory
material, the Company’s Annual Report and copies of all investor presentations are posted on the website.
ASX Recommendation 6.2: A listed entity should design and implement an investor relations program to
facilitate effective two-way communication with investors.
The Company has complied with this recommendation.
The Company’s Managing Director and Investor Relations Consultant are the Company’s main contacts for
investors and make themselves available to discuss the Company’s activities when requested. In addition
to announcements made in accordance with its continuous disclosure obligations, the Company, from time
to time, prepares and releases general investor updates about the Company. During the financial year the
43
2022 LEPIDICO ANNUAL REPORT Company continued to work with Edison Group to facilitate the Company’s investor and public relations
programs with a focus on electronic media communication
Contact with the Company can be made via an email address provided on the website and investors can
subscribe to the Company’s email contact list.
ASX Recommendation 6.3: A listed entity should disclose how it facilitates and encourages
participation at meetings of security holders.
The Company has complied with this recommendation.
The Company encourages participation of shareholders at any general meetings and its Annual General
Meeting each year. Shareholders are encouraged to lodge direct votes or proxies subject to the adoption
of satisfactory authentication procedures if they are unable to attend the meeting. At each Annual General
Meeting the Chair allows a reasonable opportunity for shareholders to ask questions of the Board and the
external auditors.
The full text of all notices of meetings and explanatory material are posted on the Company’s website at
www.lepidico.com as soon as they have been released by the ASX.
ASX Recommendation 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.
The Company has complied with this recommendation.
The proxy numbers received in advance of a meeting of shareholders are made available for shareholders
attending the meeting in person. Where a show of hands is not aligned with the proxy numbers the Chair will
call for a poll.
ASX Recommendation 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.
The Company has complied with this recommendation.
Lepidico has a dedicated email address to handle shareholder communications.
Lepidico’s securities registrar, Automic Group, facilitates the provision of communications between Lepidico
and its shareholders electronically. Shareholders can make a choice about how they wish to receive
information from Lepidico and can elect to receive Lepidico documents including notices of meetings, annual
reports and other correspondence electronically. Shareholders can also lodge their proxies electronically.
PRINCIPLE 7: RECOGNISE AND MANAGE RISK
ASX Recommendation 7.1: The Board of a listed entity should:
(a) have a committee or committees to oversee risk, each of which:
(1) has at least three members, a majority of whom are independent directors; and
(2) is chaired by an independent director;
and disclose:
(3) the charter of the committee,
(4) the members of the committee and
(5) as at each reporting period, the number of times the committee met throughout the period
and the individual attendances of the members at those meetings; or
(b)
If it does not have a risk committee or committees that satisfy (a) above, disclose that fact and the
processes it employs for overseeing the entity’s risk management framework.
The Company has complied with this recommendation.
A copy of the Audit and Risk Committee Charter is available in the Corporate Governance section of the
Company's website at www.lepidico.com.
The members of the Committee, the number of meetings held during the financial period and the individual
attendance of the members at those meetings are set out in the Directors’ Report included in the Lepidico
Annual Report.
44
2022 LEPIDICO ANNUAL REPORT
ASX Recommendation 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 was undertaken.
The Company has complied with this recommendation.
The charter of the Audit and Risk Committee provides that the committee will annually review the Company’s
risk management framework to ensure that it remains sound.
The Board conducted such a review in relation to the reporting period.
ASX Recommendation 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 governance, risk management and internal control
processes.
The Company has complied with this recommendation.
Given the Company’s current size and level of operations it does not have an internal audit function. The Audit
and Risk Committee oversees the Company’s risk management systems, practices and procedures to ensure
effective risk identification and management and compliance with internal guidelines and external requirements
and monitors the quality of the accounting function.
ASX Recommendation 7.4: A listed entity should disclose whether it has any material exposure to
economic, environmental and social sustainability risks and if it does how it manages or intends to
manage those risks.
The Company has complied with this recommendation.
The Company has exposure to economic risks, including general economy wide economic risks and risks
associated with the economic cycle which impact on the price and demand for minerals which affects the
sentiment for investment in exploration companies.
There will be a requirement in the future for the Company to raise additional funding to pursue its business
objectives.
The Company’s ability to raise capital may be affected by these economic risks.
The Company has in place risk management procedures and processes to identify, manage and minimise its
exposure to these economic risks where appropriate.
The operations and proposed activities of the Company are subject to International, Federal and State laws
and regulations concerning the environment. As with most exploration projects and mining operations, the
Company’s activities are expected to have an impact on the environment, particularly if advanced exploration
or mine development proceed. Environmental and Social Management plans are under development for all
planed operations which will meet International Finance Corporation and Equator Principal standards.
It is the Company’s intention to conduct its activities to the highest standard of environmental obligation,
including compliance with all environmental laws.
The Board currently considers that the Company does not have any material exposure to social sustainability risk.
The Company’s Corporate Code of Conduct outlines the Company’s commitment to integrity and fair dealing
in its business affairs and to a duty of care to all employees, clients and stakeholders. The code sets out
the principles covering appropriate conduct in a variety of contexts and outlines the minimum standard of
behaviour expected from employees when dealing with stakeholders.
45
2022 LEPIDICO ANNUAL REPORT PRINCIPLE 8: REMUNERATE FAIRLY AND RESPONSIBLY
ASX Recommendation 8.1: The Board of a listed entity should:
(a) have a remuneration committee which:
(1) has at least three members, a majority of whom are independent directors; and
(2) is chaired by an independent director;
and disclose:
(3) the charter of the committee,
(4) the members of the committee and
(5) as at each reporting period, the number of times the committee met throughout the period
and the individual attendances of the members at those meetings; or
(b) If it does not have a remuneration committee, disclose that fact and the processes it employs
for setting the level and composition of remuneration for directors and senior executives and
ensuring that such remuneration is appropriate and not excessive.
The Company has complied with this recommendation.
A copy of the Remuneration and Nomination Committee Charter is available in the Corporate Governance
section of the Company's website at www.lepidico.com.
The members of the Committee, the number of meetings held during 2022 and the individual attendance of
the members at those meetings are set out in the Directors’ Report included in the Lepidico Annual Report.
ASX Recommendation 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.
The Company has complied with this recommendation.
The Non-Executive Directors are paid a fixed annual fee for their service to the Company as a Non-Executive
Directors and additional fixed fees for Board Committee participation. Non-Executive Directors may, subject
to shareholder approval, be granted equity-based remuneration.
Executives of the Company typically receive remuneration comprising a base salary component and other
fixed benefits based on the terms of their employment agreements with the Company and potentially the
ability to participate in short term incentives and may, subject to shareholder approval and if appropriate, be
granted equity based remuneration.
ASX Recommendation 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 the policy or a summary of that policy.
The Company has complied with this recommendation.
Participants in any Company equity-based remuneration scheme are not permitted to enter into transactions
which limit the economic risk of participating in the scheme.
46
2022 LEPIDICO ANNUAL REPORT
Financial Report
Table of Contents
Directors’ Report ...................................................................... 48
Auditors Independence Declaration ................................ 65
Consolidated Statement of Profit and Loss
and Other Comprehensive Income ................................. 66
Consolidated Statement of Financial Position ............. 67
Consolidated Statement of Changes in Equity .............68
Consolidated Statement of Cash Flow ............................69
Notes to the Financial Statements ....................................70
Directors’ Declaration ..........................................................100
Independent Auditor’s Report ...........................................101
Supplementary (ASX) Information .................................. 105
2022 LEPIDICO ANNUAL REPORT
47
47
2022 LEPIDICO ANNUAL REPORT Directors’ Report
The Directors of Lepidico Ltd (Directors) present their report on the Consolidated Entity consisting of Lepidico
Ltd (the Company or Lepidico) and the entities it controlled at the end of, or during, the year ended 30 June
2022 (Consolidated Entity or Group).
Directors
The names of the Directors in office and at any time during, or since the end of, the year are:
Mr Gary Johnson
Mr Joe Walsh
Mr Mark Rodda
Ms Cynthia Thomas
Non-executive Chair
Managing Director
Non-executive Director
Non-executive Director
Directors have been in office since the start of the financial year to the date of this report.
Current Directors
Mr Gary Johnson - Chair (Non-executive)
Qualifications - MAusIMM, MTMS, MAICD
Mr Johnson has over 40 years’ experience in the mining industry as a metallurgist, manager, owner, director
and managing director possessing broad technical and practical experience of the workings and strategies
required by successful mining companies. Gary is a principal and part owner of Strategic Metallurgy Pty Ltd,
which specialises in high-level metallurgical and strategic consulting. He has been a Director of the Company
since 9 June 2016.
Special responsibilities:
Member of Audit and Risk Committee
Member of the Remuneration and Nomination Committee
Other Current Directorships of listed public companies:
Director of Antipa Minerals Ltd (ASX listed)
Director of St-Georges Platinum and Base Metals Ltd (CSE listed Company)
Former Directorships of listed public companies in the last 3 years:
None
Mr Julian “Joe” Walsh - Managing Director (Executive)
Qualifications - BEng, MSc
Mr Walsh is a resources industry executive, mining engineer and geophysicist with over 30 years’ experience
working for mining and exploration companies, and investment banks in mining related roles. Joe joined
Lepidico as Managing Director in 2016. Prior to this he was the General Manager Corporate Development
with PanAust Ltd and was instrumental in the evolution of the company from an explorer in 2004 to a
US$2+billion, ASX 100 multi-mine copper and gold company. Joe has extensive equity capital market
experience and has been involved with the technical and economic evaluation of many mining assets and
companies around the world.
Special responsibilities:
Member of the Diversity Committee
Other Current Directorships of listed public companies:
None
Former Directorships of listed public companies in the last 3 years:
None
48
2022 LEPIDICO ANNUAL REPORT
Mr Mark Rodda - Non-Executive Director
Qualifications - BA, LLB
Mr Rodda is a lawyer and consultant with over 25 years’ private practice, in-house legal, company secretarial
and corporate experience. Mr Rodda has considerable practical experience in the management of local and
international mergers and acquisitions, divestments, exploration and project joint ventures, strategic alliances,
corporate and project financing transactions and corporate restructuring initiatives. Prior to its 2007 takeover
by Norilsk Nickel for in excess of US$6 billion, Mark held the position of General Counsel and Corporate
Secretary for LionOre Mining International Ltd, a company with operations in Australia and Africa and listings
on the TSX, LSE and ASX.
Special responsibilities:
Chair of the Remuneration and Nomination Committee
Member of Audit and Risk Committee
Member of the Diversity Committee
Other Current Directorships of listed public companies:
Director of Antipa Minerals Ltd
Former Directorships of listed public companies in the last 3 years:
None
Ms Cynthia Thomas – Non-Executive Director
Qualifications – B.Com, MBA
Ms Thomas has over 30 years’ of banking and mine finance experience, and is currently the Principal of
Conseil Advisory Services Inc. (Conseil), an independent financial advisory firm specialising in the natural
resource industry which she founded in 2000. Prior to founding Conseil, Cynthia worked with the Bank of
Montreal, Scotiabank and ScotiaMcLeod in the corporate and investment banking divisions. Cynthia holds a
Bachelor of Commerce degree from the University of Toronto and a Masters in Business Administration from
the University of Western Ontario.
Special responsibilities:
Chair of Audit and Risk Committee
Chair of the Diversity Committee
Member of the Remuneration and Nomination Committee
Other Current Directorships of listed public companies:
None
Former Directorships of listed public companies in the last 3 years:
Executive Chair of Victory Nickel Inc. (CSE listed) – resigned 26 July 2022
Company Secretaries
Mr Alex Neuling
Qualifications: BSc, FCA (ICAEW), FCIS
Mr Neuling has extensive corporate and financial experience including as director, chief financial officer and/
or company secretary of various ASX-listed companies in the mineral exploration, mining, oil and gas and
other sectors. Alex is principal of Erasmus Consulting, which provides company secretarial and financial
management consultancy services to ASX-listed companies. In addition to his professional qualifications,
Alex also holds a degree in Chemistry from the University of Leeds in the United Kingdom.
Ms Shontel Norgate
Qualifications: CA, AGIA ACIS
Ms Norgate is a Chartered Accountant with over 25 years’ experience in the resources industry including
debt and equity finance, financial reporting, project management, corporate governance, commercial
negotiations and business analysis experience in finance and administration. Prior to joining Lepidico Shontel
was CFO for ten years with TSX-listed resources company, Nautilus Minerals Inc. Prior to her appointment
at Nautilus Minerals, Ms Norgate was Financial Controller with Macarthur Coal Ltd and Southern Pacific
Petroleum NL, both listed on the ASX and commenced her career as an auditor with Price Waterhouse (now
PricewaterhouseCoopers)
49
2022 LEPIDICO ANNUAL REPORT
Meetings of Directors
The following table sets out the number of meetings of the Company’s Directors held during the year ended
30 June 2022, and the number of meetings attended by each director.
Full Board
Meetings
Audit & Risk
Committee
Meetings
Nomination &
Remuneration
Committee
Meetings
Diversity
Committee
Meetings
No.
eligible
to attend
No.
attended
No.
eligible
to attend
No.
attended
No.
eligible
to attend
No.
attended
No.
eligible
to attend
No.
attended
Mr Gary Johnson
Mr Joe Walsh
Mr Mark Rodda
Ms Cynthia Thomas
6
6
6
6
6
6
6
6
2
0
2
2
2
0
2
1
3
0
3
3
3
0
3
3
0
2
2
2
0
2
2
2
Information on Directors’ Interests in Securities
of Lepidico
As at the date of this report, the notifiable interests held directly and through related bodies corporate or
associates of the Directors in shares and options of Lepidico are:
Mr Gary Johnson
Mr Joe Walsh
Mr Mark Rodda
Ms Cynthia Thomas
Principal Activities
Number of fully
paid ordinary shares
Number of options
335,358,326
35,468,572
-
-
23,927,955
45,944,286
22,500,000
22,500,000
370,826,898
114,872,241
The principal activities of the Consolidated Entity during the financial year were mineral exploration and
development, and development of proprietary technologies, including: L-Max®, LOH-Max® and caesium-
rubidium extraction.
CAUTIONARY NOTE REGARDING FORWARD LOOKING STATEMENTS
All statements other than statements of historical fact included in this report including, without limitation,
statements regarding future plans and objectives of Lepidico, are forward-looking statements. Forward-
looking statements can be identified by words such as "anticipate", "believe", "could", "estimate", "expect",
"future", "intend", "may", "opportunity", "plan", "potential", "project", "seek", "will" and other similar words
that involve risks and uncertainties. These statements are based on an assessment of present economic and
operating conditions, and on a number of assumptions regarding future events and actions that are expected
to take place. Such forward-looking statements are not guarantees of future performance and involve known
and unknown risks, uncertainties, assumptions and other important factors, many of which are beyond the
control of the Company, its directors and management of Lepidico that could cause Lepidico’s actual results
to differ materially from the results expressed or anticipated in these statements.
The Company cannot and does not give any assurance that the results, performance or achievements
expressed or implied by the forward-looking statements contained in this release will actually occur and
investors are cautioned not to place any reliance on these forward-looking statements. Lepidico does not
undertake to update or revise forward-looking statements, or to publish prospective financial information in
the future, regardless of whether new information, future events or any other factors affect the information
contained in this release, except where required by applicable law and stock exchange listing requirements.
50
2022 LEPIDICO ANNUAL REPORT
Dividends Paid or Recommended
The Directors recommend that no dividend be paid for the year ended 30 June 2022, nor have any amounts
been paid or declared by way of dividend since the end of the previous financial year.
Summary Review of Operations
For the financial year ending 30 June 2022 the Group recorded a net loss after tax of $7,941,340 (2021: net
profit after tax $282,556) and a net cash out flow from operations of $5,482,547 (2021: net inflow $1,036,610).
The net assets of the Group increased to $76,441,558 at 30 June 2022 (2021: $74,949,679).
Phase 1 Project Development
Chemical Conversion Plant (100%), Abu Dhabi
The Phase 1 Project represents a unique opportunity globally for production of the strategic metals: caesium
and rubidium, for which the United States is 100% reliant on imports. Furthermore, lithium, caesium, and
rubidium, the main Phase 1 products, are all on the U.S. Government list of Critical Minerals, making
Lepidico’s technologies and the Phase 1 chemical plant strategically significant.
The Musataha lease agreement was signed in early October 2021 with Abu Dhabi Ports (ADP) with the
staged deposit fully paid during the period. The Musataha agreement secures the 57,000m2 site for the
Phase 1 chemical plant for an initial term of 25 years. The site is located within the Khalifa Industrial Zone
Abu Dhabi (KIZAD), a major industrial free zone, which allows full foreign business ownership as well as tax
exemptions on imports and exports. During the year the Company was granted its Environmental Permit to
Construct with work on other permits continuing.
Following the signing of the Musataha, Lycopodium Minerals Pty (Lycopodium), the Company’s appointed
EPCM contractor, started work with ADP (the parent company of KIZAD) to design the on-site infrastructure
and tie-ins to all utilities with the general site layout approved by ADP. Site geo-technical work, which
included drilling and geophysical investigations were completed during the period with infrastructure
development works to establish access, utilities and services to the chemical plant site being progressed by
ADP. Access road works are complete, which has allowed electrical power, natural gas and industrial water
utilities, and sewer and drainage services works to the site boundary to start.
Lycopodium and Strategic Metallurgy collaborated on the chemical plant flowsheet during the year which
incorporated demonstration scale pilot plant campaign results and allowed for a milestone version of the
Process Design Criteria (PDC) to be developed. Further refinements were made to the PDC on receipt of
critical mechanical equipment vendor development testwork in June (based on samples generated from the
pilot campaigns), which allowed the specifications of the filters, crystallisers and regrind mill to be finalised.
This in turn allowed Lycopodium to start work on the engineering and design for the installation of these
units, with the draft control estimate and implementation schedule expected in the second half of calendar
2022. Limited vendor testwork continues that is confirmatory (non-critical) and thereby not on the Front
End Engineering and Design (FEED) critical path. The PDC will however, continue to be a live document
throughout the detailed design phase and thereby take account of all confirmatory testwork.
In April 2022, Hans Daniels was appointed as General Manager Operations UAE. He started with Lepidico
in early July 2022. Hans brings a great breadth and depth of experience from his plus 30 years working
in the chemicals industry, much of it in the UAE, where he has established and developed new chemicals
businesses. As GM Operations for the region, Hans will lead the implementation and operation of Lepidico’s
Phase 1 chemicals process facility – which employs the Company’s proprietary process technologies –
being developed within the Khalifa Industrial Zone Abu Dhabi (KIZAD).
Karibib Project (80%), Namibia
Karibib is fully permitted for the re-development of two open pit mines at Rubicon and Helikon 1, which
will feed lithium mica ore to a central mineral concentrator adjacent to Rubicon that employs conventional
flotation technology. Key permits for the Project which have been awarded include the Mining Licence
(ML204), water extraction permit, Environmental Compliance Certificate (ECC), and a separate ECC awarded
for the overhead power transmission line.
The Ministry of Mines and Energy, Republic of Namibia granted the Accessory Works Permit for the
development of the Karibib Lithium Operations within ML204. The accessory works application included the
waste management areas designed by Knight Piésold and various site ancillaries designed by Lycopodium,
which includes site buildings and structures.
Lycopodium finalised the FEED in June following a review of major equipment vendors which led to a
change in supplier being recommended for the flotation cells, which in turn necessitated some redesign
works. Some modifications were also introduced into the crusher and concentrate bagging areas. The
revised FEED was finalised with no material impact to the control estimate but an improved risk position for
implementation and operations.
51
2022 LEPIDICO ANNUAL REPORT An Ore Reserve review was completed by AMDAD based on a first principles revision to operating costs
for the integrated project, updated physicals that incorporates all process testwork since completion of the
Definitive Feasibility Study (DFS) in May 2020 and Benchmark Mineral Intelligence latest lithium hydroxide
price forecast. The re-optimisation confirmed the pit stages assumed in the DFS and therefore the pit designs
remain in good standing. A modest increase in life of mine ore tonnes at slightly lower grade is implied,
subject to further evaluation. This is consistent with the higher lithium price more than offsetting the effect of
inflation on operating costs.
Bulk earthworks were awarded to a national construction contractor in December 2021 following a tender
process. Works include access road upgrade, on-site roads, Rubicon waste management area starter pad,
site water management structures and bulk earthworks pads for the concentrator, non-process buildings and
stockpile areas.
The power supply system design was completed and issued for tender in January 2022. Solar and
hydropower already make significant contributions to the Namibian national grid. It is expected that at least
80% of grid power will be from committed renewable sources by 2025. Lepidico is also tracking several new
solar projects that appear to be close to a development decision, which could allow all power to the Karibib
Project to be from renewable sources.
Site works at Karibib are scheduled to start once Project finance is secured. A considerable tonnage of
high-grade in-situ lepidolite mineralisation is exposed at surface at Rubicon with minimal requirement
for mining of waste. As such, ore mining is not on the critical path and is planned to start just ahead of
concentrator commissioning.
In August 2022, Timotheus (Timo) Ipangelwa commenced as GM Operations Namibia. Timo has 16 years’
experience as a Mining Engineer working at both large and medium scale open pit operations. As GM
Operations for Lepidico in Namibia, Timo will lead the re-development of the two open pit mines at Rubicon
and Helikon, as well as the implementation and operation of Lepidico’s Phase 1 mineral concentrator for the
Karibib Project.
Sustainability
In April, 2022 Benedicta Uris joined Lepidico as General Manager Sustainability & Country Affairs Namibia.
Benedicta is uniquely well qualified and brings a wealth of experience from more than 20 years in senior
management sustainability roles within the natural resources industries in Africa and the United Kingdom.
As GM Sustainability for the Lepidico Group, Benedicta is responsible for designing and implementing the
Company's sustainability strategy, with an emphasis on Environment, Social and Governance (ESG), reporting
to the Managing Director. Based in Namibia, Benedicta is also responsible for Country Affairs in the region.
A comprehensive mapping and gap assessment of IFC, World Bank, Development Finance Corporation
(DFC) and IRMA standards/requirements versus Phase 1 ESIAs and the Karibib ESMP (Environment and
Social Management Plan) was completed during the year. The results have been shared with DFC and policy/
standard development is well advanced to meet finance requirements, which includes an Environment
and Social Action Plan. At year end Lepidico Chemicals Namibia was also well advanced on an updated
stakeholder engagement plan.
Lepidico remains committed to continued improvement in environmental performance. Opportunities to
reduce already low levels of greenhouse gas (GHG) emissions versus industry peers have been identified and
are actively being pursued. Evaluation of work by environmental consultant GHD for Phase 1 has identified
opportunities to reduce aggregate Scope 1 and 2 emissions to less than 3.0t CO2-e/ t Lithium Carbonate
Equivalent (LCE); an industry leading position.
GHD advised in its report that Scope 1 and 2 emissions1 intensity associated with the Abu Dhabi Phase 1
chemical plant is estimated at just 7.46t CO2-e/t2 lithium hydroxide. The largest single source of chemical
plant emissions, approximately 60%, is from natural gas used for generating process heat. Lepidico has
started discussions for supply of green hydrogen from new production planned to be developed at KIZAD.
Opportunities to reduce overall energy consumption via solar preheating of boiler feed water will also be
evaluated, amongst other initiatives to reduce emissions and costs.
At Karibib, grid power already includes a significant renewable component with more committed projects
to come onstream. As previously advised, by 2025 it is estimated that 80% of power will be generated from
renewable sources3. It appears increasingly likely that further solar power capacity will be committed to in the
Karibib region this year, which would provide an opportunity to reduce or even eliminate Scope 2 emissions,
other than for backup purposes.
1 Scope 1 covers direct emissions from owned or controlled sources. Scope 2 covers indirect emissions from the generation
of purchased electricity, steam, heating and cooling consumed by the reporting company. Scope 3 includes all other indirect
emissions that occur in a company's value chain.
2 Tonnes of carbon dioxide equivalent
3 NamPower Investors Briefing, July 2019
52
2022 LEPIDICO ANNUAL REPORT Excellence in environmental stewardship, which includes demonstrating that products have low associated
CO2-e emissions, is now almost essential for chemicals supplied for EV manufacture, particularly when
associated with vehicle sales into the European and North American markets. This ethical sourcing of
chemicals also extends to the evaluation of water and land usage, both of which can be challenging for certain
types of lithium deposits and processes. This is not the case when employing Lepidico’s proprietary process
technologies, which will be commercialised in the Company’s integrated Phase 1 Project.
In consultation with the Traditional Authority, Lepidico completed a micro-finance project, during the period,
to support disadvantaged women in the nearby town of Otjimbingwe. Chicken coups, livestock and animal
husbandry training were provided. In addition, a business registration and entrepreneurship workshop for
women and youth was held in the town of Otjimbingwe. The workshop was attended by recipients of existing
Lepidico micro-finance projects as well as 23 women and youths who showed keen interest in starting micro-
businesses. Supporting information was received during the period from the Ministry of Health and Social
Services for a new maternity space at the Otjimbingwe clinic to allow a funding proposal to be completed, with
implementation planned for the 2023 fiscal year.
Fire and water trailers were acquired for the Karibib Operations to service the site and local farmer community,
where there have been instances of scrub fires. In June, 2022 a scrub fire was started just outside the Mining
Lease and EPL area by a grader contracted by Lepidico to develop fire breaks along access roads to site.
The fire was brought under control with no injury or impacts to local farmer livestock. The incident has been
investigated and revisions to procedures implemented to prevent a recurrence. Scrub fires remain a significant
risk during dry seasons that follow higher rainfall wet seasons such as occurred in 2021-‘22.
Australian not for profit organisation, ellect4, helps companies achieve diversity, equity and inclusion in their
business as part of their ESG goals. ellect has completed gender equality ratings for all ASX listed companies,
with Lepidico having a score in the top 5% based on its Board and key management composition.
Product Marketing
The Company entered into a binding offtake agreement in December 2021 for sales-marketing, logistics and trade
finance with Traxys Europe S.A. (“Traxys”) for 100% of the production of lithium hydroxide (5,000tpa) from the
Company’s planned Phase 1 Project during the first 7 years of operation or 35,000t in total. In addition, Traxys will
act as agent for 100% of the production of caesium sulphate solution (c.400tpa) from the Chemical Plant.
A growing understanding across the industry of an impending acceleration in lithium demand growth coupled
with limited new supply options means that Lepidico is well positioned to commit its lithium hydroxide with
leading sustainability focused consumers within the electric vehicle supply chain. Negotiations are well
advanced for binding supply agreements to be entered into with Lepidico-Traxys before December 2022.
Product samples continue to be manufactured by Strategic Metallurgy in Perth for prospective customers.
Similarly, caesium chemical supply negotiations continue to advance well with multiple size consumers.
Interest is being driven by an emerging substantial supply deficit, as one of just two major producers of
caesium chemicals ceases supply this year on depletion of its raw material source. The Phase 1 chemical plant
represents the only advanced source of new supply outside of China.
Offtake letters of intent have now been signed with multiple local UAE groups for all three Phase 1 bulk
products following successful sample tests. There is strong demand for amorphous silica as a supplementary
cementitious material for use in construction, as it both lowers the greenhouse gas emissions associated with
concrete manufacture and also improves its compressive strength. Multiple uses have also been identified for
the Phase 1 gypsum residue that include construction materials, agricultural soil amendments and as a product
employed in the rehabilitation of landfill sites. Lepidico’s ambition for Phase 1 to have zero solid process waste
is fast approaching a reality. The Company has secured three non-binding LOIs for the supply of between
15,000-20,000t per annum of sulphate of potash (SOP) from the Phase 1 Chemical Plant.
Binding term sheets are now being developed and negotiated with customers to be closely followed by supply
agreements for all bulk-products.
Phase 2 Plant Scoping Study
Completion of FEED works for the Phase 1 concentrator has allowed a debottlenecking and expansion study to
be undertaken. Existing water infrastructure and the planned power supply have capacity to support a doubling
of the ore milling rate to 520,000tpa. The cyclones are also scaled for this throughput and allowance is made in
the existing design for a second ball mill, to allow Phase 1 concentrate output of 60,000tpa to be maintained on
lower grade, predominantly lithian-muscovite ores.
Preliminary results from the expansion review indicate that a doubling of throughput on higher grade lepidolite
ore could support a doubling of concentrate output in an extremely capital efficient manner.
4 www.ellect.biz
53
2022 LEPIDICO ANNUAL REPORT Positive exploration results at Helikon 3-4 and encouragement from regional exploration activities, coupled
with unsolicited interest from owners of various lithium mica assets has justified a review of Phase 2
development options. An additional 5-7 million tonnes of near surface Measured-Indicated Mineral Resources
at Karibib of similar grade to Rubicon-Helikon 1 is sufficient to support a Pre-Feasibility Study on a Phase 2
chemical plant project of similar scale to Phase 1. This scenario is supported by the Karibib exploration target
for fiscal 2023, with a more ambitious target set for 2024.
However, additional sources of concentrate from third-party lithium mica mines could support a significantly
larger chemical conversion plant and lead to the development of a global market for lithium mica concentrates.
Research & Product Development
Collaboration between Lepidico, Lycopodium and Strategic Metallurgy in developing a revised PDC has
resulted in a chemical plant flowsheet-layout that will ensure improved operability and maintainability, as well
as reducing scale-up and ramp-up risks.
Strategic Metallurgy continued to conduct pilot operations through the demonstration scale facility in Perth.
L-Max® operations concluded early in the June 2022 quarter. LOH-Max® lithium hydroxide refining from
the inventory of raw product was delayed due to availability of plant operators and contamination from a
purchased reagent that was substantially out of specification. All refining equipment has been dismantled,
cleaned and reassembled. Refining operations recommenced in early July.
L-Max® and LOH-Max® pilot campaign reports have been drafted by Strategic Metallurgy and provided to the
project lender’s Independent Engineer, Behre Dolbear Australia Pty Ltd (BDA), for its review. A third report on
by-product manufacture was in advanced draft, while the final lithium hydroxide refining report was pending
completion of the campaign trial and receipt of assays at year end.
Virtual demonstration plant tours were run for both lenders and equity investors during the year. Various
demonstration plant product samples were prepared and dispatched to customers for assessment. At year
end further samples were scheduled for dispatch to customers on receipt of assays.
Exploration5
Karibib Project (80%)
Lepidico is pursuing a strategy of maximising the value of its exploration properties by implementing
programs targeted at a range of metals, which the Namibian properties are prospective for and include
lithium, caesium, rubidium, tantalum, gold, copper and tungsten.
A drilling program was completed during the year at Helikon 4 and returned the broadest high grade lithium
intercepts to date at the Karibib Project, while a new lepidolite bearing pegmatite was identified at Homestead
with a strike of at least 250m and downhole width of up to 31m. In addition, trenching and sampling of
lepidolite rich stockpiles at Rubicon was completed with a revised Mineral Resource Estimate (MRE) planned
for later in calendar 2022 that is intended to upgrade the current high-grade Inferred material into Indicated
category and thereby allow it to be included in the Phase 1 mine plan.
Two new land access agreements were entered into during the year allowing exploration of priority targets
to start within EPL5439, which is located immediately to the east the Phase 1 Mining Licence area (ML204).
The Homestead target is situated within this EPL, 1.6km along strike from the Helikon 2 5 line of lepidolite
pegmatites.
5 The information in this report that relates to the Helikon 1 and Rubicon Ore Reserve estimates is extracted from an ASX
Announcement dated 28 May 2020 (“Definitive Feasibility Study Delivers Compelling Phase 1 Project Results”) and was
completed in accordance with the guidelines of the JORC Code (2012). The Company confirms that it is not aware of any new
information or data that materially affects the information included in the original market announcement and that all material
assumptions and technical parameters underpinning the Mineral Resource estimates in the relevant market announcement
continue to apply and have not materially changed. The Company confirms that the form and context in which the Competent
Person’s findings are represented have not been materially modified from the original market announcement.
The information in this report that relates to the Rubicon and Helikon 1 Mineral Resource estimates is extracted from an ASX
Announcement dated 30 January 2020 (“Updated Mineral Resource Estimates for Helikon 1 and Rubicon”) and was completed
in accordance with the guidelines of the JORC Code (2012). The Company confirms that it is not aware of any new information or
data that materially affects the information included in the original market announcement and that all material assumptions and
technical parameters underpinning the Mineral Resource estimates in the relevant market announcement continue to apply and
have not materially changed. The Company confirms that the form and context in which the Competent Person’s findings are
represented have not been materially modified from the original market announcement.
The information in this report that relates to the Helikon 2 - Helikon 5 Mineral Resource estimates is extracted from an ASX
Announcement dated 16 July 2019 (“Drilling Starts at the Karibib Lithium Project”) and was completed in accordance with the
guidelines of the JORC Code (2012). The Company confirms that it is not aware of any new information or data that materially
affects the information included in the original market announcement and that all material assumptions and technical parameters
underpinning the Mineral Resource estimates in the relevant market announcement continue to apply and have not materially
changed. The Company confirms that the form and context in which the Competent Person’s findings are represented have not
been materially modified from the original market announcement.
54
2022 LEPIDICO ANNUAL REPORT Helikon 4 Mineral Resource infill drilling
Helikon 4 has the largest Inferred Mineral Resource on the 1.5km long E-W line of pegmatites, Helikon 2 -
Helikon 5, situated one kilometre north of Helikon 1 within a folded sequence of marbles and metasediments.
These pegmatites were mined historically for petalite, a lithium mineral used mainly in ceramics and glass
manufacture. Currently, Helikon 4 contains an Inferred Mineral Resource JORC Code (2012) of 1.51Mt @
0.38% Li2O (0.20% Li2O cut-off) based largely on diamond core drilling completed in 2017. The reverse
circulation (RC) infill drilling program that started in late January 2022, comprised 20 holes for 1,612m, which
provided additional data on the geometry of the pegmatite and continuity of mineralisation, with the objective
of upgrading the Resource into Measured and Indicated categories before the end of calendar 2022. Six of
the holes from this RC program stopped short of their target depth due to heavy water flow. These holes were
completed by a diamond rig with HQ core (see ASX announcement on 27 June 2022 for drill hole data). Assay
results for the RC phase of this work have been received. Logging of the diamond core tails confirms the
presence of lepidolite, with assay results pending at year end.
All holes from the RC program intersected mineralised pegmatite and all but two holes intersected significant
lepidolite mineralisation.
Better results (before receipt of core assays) included:
• 40m @ 1.08% Li2O from massive and disseminated lepidolite in hole HRCH033
• 20m @ 1.16% Li2O from a zone of albite with disseminated lepidolite in hole HRCH039
• 6m @ 2.15% Li2O from a mica rich zone in hole HRCH030
Homestead Pegmatite
A maiden drilling program started at the Homestead prospect in May 2022. This target is marked by a
small outcrop of lepidolite-bearing pegmatite. Drilling to date has confirmed the presence of a mineralised
pegmatite at depth. Hole HRC009 intersected 31 metres of zoned LCT-type pegmatite with bands of
lepidolite, green (possibly lithian) muscovite and petalite, confirming the prospectivity of this pegmatite. The
pegmatite appears to plunge to the SW, with drilling now chasing the mineralised zone. This first phase of
drilling completed in June, with assay results pending at year end.
Rubicon Stockpiles
The Rubicon surface stockpiles currently comprise an Inferred Mineral Resource JORC Code (2012) of
414,506t @ 0.84% Li2O. An extensive sampling program was completed during the year, aimed at increasing
the confidence in lithium distribution within and between the various stockpiles to aid in the potential upgrade
of most of this Mineral Resource into the Indicated category.
A total of 44 trenches were excavated over various fine (< 60mm) dumps. Trench spacing was nominally
20m on the larger dumps and 10m on smaller dumps. Trenches were sampled from top to base by vertical
channels cut into one side of the trench, with a total of 406 samples collected. The coarser (> 60mm) Dump
A was sampled by a grid of 25 pits excavated to colluvium at the base of the dump. One bulk sample of
c.200 kg was collected from around the spoil at each pit.
In addition, 424 bulk density determinations were taken from across the stockpiles. All trenches and
stockpiles were surveyed by differential GPS, including the top and base (colluvium) in each case.
Assay results were pending at year end. Work on a revised Mineral Resource estimate for the Rubicon
stockpiles will start once the assays are received.
Regional Exploration and Scout Drilling
Drilling commenced over conceptual LCT-type pegmatite regional targets (RT targets) generated by an
algorithm developed in house. Targets are initially ground truthed and verified by soil sampling on a nominal
100m x 50m grid, with the soils subjected to analysis by portable hand-held XRF to determine the Rb
content. Rubidium is used as a proxy for lepidolite-bearing pegmatites as lithium, with an atomic number of
only 3, cannot be detected by XRF.
So far, priority targets RT01 and RT18 located within ML204 have been tested by scout lines of RC holes
drilled across the strongest parts of associated surface Rb anomalies. Fractionated pegmatitic granite was
intersected in both cases similar to that seen proximal to the Rubicon deposit, with several pegmatite lenses
also identified at RT18. Assay results were pending at year end.
Regional exploration of other LCT pegmatite and gold targets within EPL5439 using portable XRF was
ongoing during the year. The method provides a quick first-pass assessment of targets which allows certain
works to continue while assays are awaited.
Further work was also undertaken at the Marble Hill pegmatite prospect where old surface scratchings and
limited prior drilling has identified an LCT-type pegmatite over a c.700m strike. To date, only 200m of this
strike has been effectively tested with drilling, identifying sporadic lepidolite mineralisation.
EPL5439 was recently renewed till June 2024. Work undertaken to date allowed this EPL area to be reduced
by 25% to 165km2 with no loss in prospectivity. EPL5718 and EPL5555 were relinquished during the year as
no meaningful results were returned from scout exploration works over recent years.
55
2022 LEPIDICO ANNUAL REPORT Corporate
Cash and Facilities
At 30 June 2022, Lepidico had cash and cash equivalents of $8.0 million.
In January 2022, the Company agreed with Acuity Capital to extend the expiry date of its Controlled
Placement Agreement (“CPA”) to 31 January 2024.
As previously announced, the CPA was initially established with an expiry date of 31 January 2021 (see
announcement dated 23 December 2019).
There is no requirement on Lepidico to utilise the CPA and there were no fees or costs associated with the
extension of the CPA. Further, no additional security in the form of shares has been provided or is required in
relation to the CPA extension.
COVID-19
The health, safety and wellbeing of our people, staff and contractors, remains of paramount importance.
Precautions associated with the COVID-19 eased during the second half of the financial year with normal
business travel re-instated including Investor Relations and Marketing activities. Working from home and
adherence to local safety protocols remained in place in the jurisdictions in which we operate.
Options
On 18 May 2022, the LPDOC options with an exercise price of $0.02 per option expired. Significant option
holder support was received with over 95% of all LPDOC options exercised. The remaining 14,718,406
LPDOC options expired unexercised.
On 5 June 2022, 189,140,022 LPDOB options with an exercise price of $0.05 per option expired.
Project Finance
The Company continues to make good progress in assembling a debt financing package with proceeds to
be used for the development of the integrated Phase 1 Project, supported by debt advisor Lions Head Global
Partners (Lions Head).
In June 2022, DFC provided an updated Letter of Interest as it continued its detailed due diligence on the
Project under its formal Mandate Agreement (October 2020), with a view to providing the necessary debt
financing for the Namibian portion. BDA, the independent engineer appointed by DFC to undertake Phase 1
technical due diligence completed its report on the Definitive Feasibility Study earlier in the year. This work
is being augmented by a review of demonstration plant pilot operations reports and control estimates from
EPCM Stage 1 works. In addition, BDA completed the Environmental and Social Due Diligence Review
Report during the March 2022 quarter. DFC has provided a short list for legal counsel to undertake legal due
diligence and facilities documentation following confirmation of the commercial lenders.
In parallel, Lions Head advanced discussions with other Development Finance Institutions, as well as
commercial lenders and export credit agencies for debt finance for the chemical plant development in
Abu Dhabi.
Patents & Trademarks
At 30 June 2022, the Company held granted patents for its L-Max® technology in the United States, Europe,
Japan and Australia, along with an Innovation Patent in Australia. National phase patent applications are
well advanced in the other key jurisdictions, with these processes expected to continue during calendar year
2022. The Company also has a patent granted for its process technology for lithium recovery from phosphate
minerals (amblygonite) from the United States, Japan and Australia.
The national and regional phase of the patent application process is progressing for LOH-Max® under PCT/
AU2020/050090. The S-Max® national phase patent applications are progressing under PCT/AU2019/050317
and PCT/AU2019/050318. In addition, the national and regional phase of the patent application process
for the production of caesium, rubidium and potassium brines and other formates is continuing under PCT/
AU2019/051024. The national and regional phase applications for the above processes are expected to
continue beyond 2022.
On 1 April 2022, the Company progressed with an International application under the Patent Cooperation
Treaty (PCT) and was allotted the number PCT/AU2022/050297 for the lithium carbonate recovery process
from a raw lithium hydroxide material.
On 1 October 2021 a provisional patent application was filed for the preparation of Cs-Rb-K alkali salt
solutions from lithium mica mineral source material. This refining process has application in tailoring ternary
materials for industrial catalyst applications.
56
2022 LEPIDICO ANNUAL REPORT
Significant Changes in the State of Affairs
Other than as mentioned in the Review of Operations, no significant changes in the state of affairs of the
Consolidated Entity occurred during the financial year.
Subsequent Events
Other than the matters discussed above there are no other matters or circumstances which have arisen since
30 June 2022 that have significantly affected or may significantly affect:
(a) the Consolidated Entity’s operations in future years, or
(b) the results of those operations in future financial years, or
(c) the Consolidated Entity’s state of affairs in future financial years.
Likely Developments and Expected Results on Operations
The Company plans to continue to implement its strategy to become a vertically integrated alkali metals
chemical company through the commercialisation of its proprietary technologies including L-Max® and
LOH-Max® and the ongoing growth, exploration and development of its portfolio of lithium interests.
The nature of the Company’s business remains speculative and the Board considers that comments on
expected results or success of this strategy are not considered appropriate or in the best interests of the
Company.
Insurance and Indemnity of Officers and Auditors
During the year, the Company paid a premium in respect of a contract insuring the directors of the Company
(named above) and the Company Secretaries against liabilities incurred as such a director, secretary or
executive officer to the extent permitted by the Corporations Act 2001 (Cth). The contract of insurance
prohibits disclosure of the nature of the liability and the amount of the premium. The Company has not
otherwise, during or since the financial year, indemnified or agreed to indemnify an officer or auditor of the
Company or of any related body corporate against a liability incurred as such an officer or auditor.
Options
At the date of this report, the Company has the following options on issue:
Number
73,000,000
75,000,000
5,967,000
478,597,823
67,500,000
18,090,000
67,500,000
785,654,823
Exercise Price
Grant
Expiry
$0.025
$0.016
$0.350
$0.026
$0.012
$0.020
$0.072
21 November 2019
21 November 2022
8 December 2020
8 December 2022
11 July 2019
26 February 2023
18 June 2021
18 June 2023
19 November 2020
19 November 2023
11 July 2019
14 January 2024
18 November 2021
18 November 2024
Auditor’s Independence Declaration
The Auditor’s Independence Declaration as required under section 307C of the Corporations Act 2001(Cth) for
the year ended 30 June 2022 is included on page 65 of the Directors’ Report.
The Auditor did not provide any non-audit services for the year ended 30 June 2022 (2021: $Nil)
57
2022 LEPIDICO ANNUAL REPORT
Remuneration Report (audited)
This remuneration report is set out under the following main headings:
A. Principles used to determine the nature and amount of remuneration
B. Details of remuneration
C. Service Agreements
D. Share Based Compensation
This remuneration report outlines the Director and Executive remuneration arrangements for the Company
and Group in accordance with the requirements of the Corporations Act 2001 (Cth) and its Regulations. For
this report, key management personnel (KMP) of the Group are defined as those persons having authority and
responsibility for planning, directing and controlling the major activities of the Company and Group, directly
or indirectly, including any director (whether executive or otherwise) of the Parent Company, and includes the
highest paid executives of the Company and Group.
The information provided in this remuneration report has been audited as required by section 308(3c) of the
Corporations Act 2001.
A. Principles Used To Determine The Nature And Amount Of Remuneration
The Company’s remuneration policy is designed to align director and executive objectives with shareholder
and business objectives by providing a fixed remuneration component and offering incentives based on
the Group’s financial results. A Nomination & Remuneration Committee has been established which makes
recommendations to the Board which aims to attract and retain appropriate executives and directors to run
and manage the Group, as well as create goal congruence between directors, executives and shareholders.
The Nomination & Remuneration Committee considers remuneration of Directors and the Executive and
makes recommendations to the Board. Remuneration is considered annually or otherwise as required.
The nature and amount of remuneration for an executive and non-executive director depends on the nature
of the role and market rates for the position, which are determined with the assistance of external advisors
(where necessary), surveys and reports, taking into account the experience and qualifications of each
individual. The Board ensures that the remuneration paid to KMP is competitive and reasonable.
During the financial year, Mercer Consulting (Australia) Pty Ltd (Mercer) was engaged by the Nomination &
Remuneration Committee to review elements of KMP remuneration for the year commencing 1 July 2022
including the provision of comparative information relating to the KMP remuneration for the Company’s
peers. The Company has not engaged Mercer to provide any other services and the Board is satisfied
that the remuneration review undertaken was free from undue influence by members of KMP to whom the
review relates. The Nomination & Remuneration Committee made recommendations to the Board and those
recommendations were approved by the Board.
The following were KMP of the Group during the financial year and unless otherwise indicated were KMP for
the entire financial year:
Non-Executive Directors
Mr Gary Johnson
Mr Mark Rodda
Ms Cynthia Thomas
Non-executive Chair
Non-executive Director
Non-executive Director
Executive Director
Mr Joe Walsh
Executives
Ms Shontel Norgate
Mr Peter Walker
Ms Benedicta Uris
Mr Tom Dukovcic
Mr Alex Neuling(1)
Managing Director
Chief Financial Officer & Joint Company Secretary
GM – Project Development
GM – Sustainability & Country Affairs Namibia (appointed 20 April 2022)
GM – Geology
Joint Company Secretary
(1) Mr Neuling provides services as a Joint Company Secretary through a services agreement with
Erasmus Consulting (Erasmus).
In accordance with best practice corporate governance, the structure of non-executive director and executive
remuneration is separate and distinct.
58
2022 LEPIDICO ANNUAL REPORT
Non-Executive Director Remuneration
Fees and payments to the Non-Executive Directors reflect the demands made, and the responsibilities placed
on the Non-Executive Directors. The maximum annual aggregate directors’ fee pool limit is $600,000 and was
approved by shareholders at the annual general meeting on 22 November 2018.
The Company’s policy is to remunerate Non-Executive Directors at market rates (for comparable companies)
and reflect the demands made and the responsibilities placed on the Non-Executive Directors.
Non-Executive Director fees approved by the Board since 1 December 2018 are:
Base cash fees (annual) Non-Executive Chair
Other Non-Executive Directors
Chair of Audit & Governance /Nomination & Remuneration Committee
Member of Audit & Governance /Nomination & Remuneration Committee
$ 80,000
$ 50,000
$ 10,000
$ 10,000
On formation of the Diversity Committee, it was resolved by the Committee members that the Committee
would forgo any Fees and the decision would be reviewed once a final investment decision was reached by
the Board.
Fees for Non-Executive Directors are not linked to the performance of the Company. However, to align
Directors’ interests with shareholders’ interests, Directors are encouraged to hold equity securities in the
Company. Non-executive Directors are also entitled to participate in the Company long term incentive plan
(refer Long Term Incentives (LTIs) below).
In addition to Directors’ fees, Non-Executive Directors are entitled to additional remuneration as
compensation for additional specialised services performed at the request of the Board and reimbursed
for reasonable expenses incurred by directors on Company business. Non-Executive Directors’ fees and
payments are reviewed annually by the Board.
Retirement benefits
No retirement benefits or allowances are paid or payable to Non-Executive Directors of the Company other
than superannuation benefits.
Other benefits
No motor vehicle, health insurance or other similar allowances are made available to Non-Executive Directors.
Executive Director and Executive Remuneration
The objective of the Company’s remuneration framework is to ensure reward for performance is competitive
and appropriate for the results delivered. The remuneration framework aligns executive reward with the
achievement of strategic and operational objectives and the creation of wealth for shareholders. The Board
ensures that the executive reward framework satisfies the following key criteria in line with appropriate
governance practices:
• attract, retain, motivate and reward executives;
•
•
reward executives for Company and individual performance against pre-determined targets/benchmarks;
link rewards with the strategic goals and performance of the Company;
• provide competitive remuneration arrangements by market standards (for comparable companies);
• align executive interests with those of the Company’s shareholders; and
• comply with applicable legal requirements and appropriate standards of governance.
The Company has structured an executive remuneration framework that is market competitive and
complementary to the reward strategy of the organisation. Executive remuneration packages may comprise a
mix of the following:
Fixed remuneration
Fixed remuneration comprises base salary and employer superannuation contributions. Salaries are
reviewed on an annual basis to ensure competitive remuneration is paid to executives with reference to their
role, responsibility, experience and performance. Salaries are reviewed on an annual basis. There are no
guaranteed base pay increases included in any executive contracts.
59
2022 LEPIDICO ANNUAL REPORT
Short-term incentives (STIs)
STIs comprise cash bonuses. The STIs are structured to provide remuneration for the achievement of
individual and Company performance targets linked to the Company’s strategic objectives across four areas
of focus: Development, Exploration, Financing/Shareholder Value and Governance. At the beginning of
each year, performance targets are set by the Board. Where possible, the performance targets are specific
and measurable. At the end of each year the Company’s performance against the KPIs are assessed by the
CEO and presented to the Nomination & Remuneration Committee and approved by the Board. STIs may
be adjusted up or down in line with under or over achievement relative to target performance levels at the
discretion of the Remuneration Committee.
During the year the Company achieved the key milestones relating to the development of the integrated
Phase 1 Project with permits and approvals in place for the integrated Phase 1 Project and sites development
ready, offtake secured for lithium hydroxide and early services and FEED completed for the Karibib Project
in Namibia and well advanced for the Chemical Plant in Abu Dhabi. The Company completed a successful
drilling program with results released in late June. The Company continued to ensure the health and safety of
its employees.
For the year ended 30 June 2022, STIs of $401,146 (including superannuation) were payable to KMP of the
Company or Group (2021: $322,920.82).
Long term incentives (LTIs)
LTIs comprise options granted at the recommendation of the Remuneration Committee in order to align
the objective of Directors and Executives with shareholders and the Company (refer section D for further
information). The issue of options to Directors (Non-Executive and Executive) requires shareholder approval.
The grant of share options has not been directly linked to previously determined performance milestones or
hurdles as the current pre-development stage of the Group’s activities makes it difficult to determine effective
and appropriate key performance indicators and milestones.
Persons granted options are not permitted to enter into transactions (whether through the use of derivatives
or otherwise) that limit his or her exposure to the economic risk in relation to the securities.
Consequences of Performance on Shareholder Wealth
Executive remuneration is aimed at aligning the strategic and business objectives with the creation of
shareholder wealth. The table below shows measures of the Group’s financial performance over the last
5 years as required by the Corporations Act 2001. However, given the pre-development stage of the
business these are not necessarily consistent with the measures used in determining the variable amounts
of remuneration to be awarded to KMP. Consequently, there may not be a direct correlation between the
statutory key performance measures and the variable remuneration awarded.
2018
$
2019
$
2020
$
2021
$
2022
$
Net Profit/(Loss)
(7,219,713)
(5,105,014)
(10,118,237)
$282,556
(7,941,340)
EPS
Share price at 30 June
(0.003)
0.037
(0.002)
0.026
(0.002)
0.007
0.00006
(0.00127)
0.01
0.026
60
2022 LEPIDICO ANNUAL REPORT B. Details Of Remuneration
Amounts of remuneration
Details of the remuneration paid or payable to the directors and Key Management Personnel of the Group are
set out in the following tables. Cash Salary and Fees for KMP in 2021 included deferred remuneration relating
to 2020 which was paid during the financial year ended 30 June 2021.
Short-term Benefits
Post-employment benefits
Cash
Salary and
Fees
Deferred
Cash
Salary
and Fees
Other
(STI)
Retirement
Benefits
Deferred
Retirement
Benefits
(Deferred)
Total
Share-
based
payments
Equity
Options
Vested
$
$
$
$
$
$
$
Non-Executive Directors
Mr Gary Johnson
Mr Mark Rodda
Ms Cynthia Thomas
Executive Directors
Mr Joe Walsh 1
Executives
Mr Tom Dukovcic
Ms Shontel Norgate 2
Ms Benedicta Uris 3
Mr Peter Walker 4
Mr Alex Neuling 5
Total Directors’ and
KMP remuneration
2022
2021
2022
2021
2022
2021
2022
2021
2022
2021
2022
2021
2022
2021
2022
2021
2022
2021
2022
100,000
-
100,000
25,000
80,000
-
80,000
20,000
88,000
-
87,600
21,900
-
-
-
-
-
-
408,317
-
161,157
376,496
18,825
145,639
10,000
9,500
8,000
7,600
-
-
-
-
218,182
-
55,776
208,478
9,406
48,410
21,818
19,805
321,209
-
79,236
263,547
13,177
63,755
49,101
-
405,407
-
-
-
14,482
-
90,495
248,587
17,750
59,718
45,425
37,026
1,715,641
-
-
-
-
-
401,146
39,818
-
-
-
-
-
-
-
-
-
202,500
312,500
2,375
37,500
174,375
-
202,500
290,500
1,900
37,500
147,000
-
-
-
-
-
202,500
290,500
37,500
147,000
405,000
974,474
75,000
615,960
270,000
565,776
894
50,000
336,993
-
-
-
-
-
-
-
-
-
270,000
670,445
50,000
390,479
-
-
63,583
-
270,000
765,902
50,000
376,055
-
-
45,425
37,026
1,822,500
3,979,105
2021
1,401,734
126,058
317,522
36,905
5,169
337,500
2,224,888
(1)
(2)
(3)
(4)
(5)
Mr Walsh is remunerated in Canadian dollars and his total salary paid was C$375,000 (2021: C$378,525 including C$18,025 paid as
deferred remuneration). The Company uses the average annual rate to translate remuneration into the reporting currency and has been
translated at the rate of C$1.00 for every A$1.0888 (2021: C$1.00 for every A$1.0444).
Ms Norgate is remunerated in Canadian dollars and her total salary paid was C$295,000 (2021: C$264,968, including C$12,617 paid as
deferred remuneration). The Company uses the average annual rate to translate remuneration into the reporting currency and has been
translated at the rate of C$1.00 for every A$1.0888 (2021: C$1.00 for every A$1.0444).
Ms Uris joined the Company as GM-Sustainability and Country Affairs – Namibia on 20 April 2022. Ms Uris is remunerated in Namibian
dollars and her total salary paid was N$542,040 (2021: Nil). The Company uses the average annual rate to translate remuneration into
the reporting currency and has been translated at the rate of N$1.00 for every A$0.0906 (2021: Nil).
Mr Walker is remunerated in Great British pounds and his total salary paid was GBP£221,020 (2021: GBP£147,700, including
GBP£9,800 paid as deferred remuneration). The Company uses the average annual rate to translate remuneration into the reporting
currency and has been translated at the rate of GBP£1.00 for every A$1.8343 (2020: GBP£1.00 for every A$1.8027)
Mr Neuling provides services as the Joint Company Secretary through a services agreement with Erasmus Consulting Pty Ltd
(Erasmus). During the year Erasmus was paid or is payable fees of $45,425 (2021: $37,026) for the provision of company secretarial
services to the Group.
61
2022 LEPIDICO ANNUAL REPORT Loans to Key Management Personnel
There were no loans made to Directors or other KMP of the Group (or their personally related entities) during
the current financial period.
Other Transactions with Key Management Personnel
Payments to director-related entities 1
2022
$
2021
$
2,609,905
114,271
1 Payments were made to Strategic Metallurgy Pty Ltd, a company of which Mr Gary Johnson is a director and beneficial shareholder.
The payments were for development of L-Max® technology on an arm’s length basis. As at 30 June 2022 invoices totalling $141,777
(2021: $Nil) were payable.
C. Service Agreements
The remuneration and other terms of agreement for the Company’s Managing Director and other KMP are
formalised in employment contracts, as set out below.
Mr Joe Walsh, Managing Director (MD) has an employment agreement with the Group. The agreement
specifies duties and obligations to be fulfilled as MD and provides for an annual review of base remuneration
taking into account performance. Mr Walsh’s remuneration includes a salary of C$375,000 per annum. Mr
Walsh did not receive an increase to base salary during the reporting period; however an increase in base
salary to C$465,500 was awarded effective from 1 July 2022. A monetary bonus of C$139,500 has been
awarded for the financial year ended 30 June 2022 (2021: C$135,548). Payment of the salary increase and
bonus will be deferred until satisfaction of certain KPIs.
Termination of the employment agreement requires 6 months written notice. Upon termination, the MD is
entitled to receive from the Group all payments owed to him under the employment agreement up to and
including the date of termination and any payments due to him pursuant to any relevant legislation by way of
accrued annual leave and long service leave. If the Company terminates the agreement for any reason other
than for cause the MD will receive 1 month’s salary at the time of termination for every year of employment
with the Company to a maximum of 6 months’ payment (extendable up to 12 months under certain
prescribed events).
Mr Tom Dukovcic, GM - Geology (GMG) has an employment agreement with the Group. The agreement
specifies duties and obligations to be fulfilled as GMG and provides for an annual review of base
remuneration taking into account performance. Mr Dukovcic’s remuneration includes a salary of $240,000
per annum inclusive of superannuation. Mr Dukovcic did not receive an increase to base salary during the
reporting period; however an increase in total fixed remuneration to $275,000 inclusive of superannuation,
was awarded effective from 1 July 2022. A monetary bonus of $55,776 (inclusive of superannuation) has
been awarded for the financial year ended 30 June 2022 (2021: $48,410). Payment of the salary increase and
bonus will be deferred until satisfaction of certain KPIs.
Termination of the employment agreement requires 6 months written notice. Upon termination, the GMG
is entitled to receive from the Company all payments owed to him under the employment agreement up
to and including the date of termination and any payments due to him pursuant to any relevant legislation
by way of accrued annual leave and long service leave. If the Company terminates the agreement for any
reason other than for cause the GMG will receive 1 month’s salary at the time of termination for every year
of employment with the Company to a maximum of 6 months’ payment (extendable up to 12 months under
certain prescribed events).
Ms Shontel Norgate, Chief Financial Officer (CFO) has an employment agreement with the Group. The
agreement specifies duties and obligations to be fulfilled as CFO and provides for an annual review of base
remuneration taking into account performance. Ms Norgate’s remuneration includes a salary of C$295,00
per annum. Ms Norgate did not receive an increase to base salary during the reporting period; however an
increase in base salary to C$357,500 was awarded effective from 1 July 2022. A monetary bonus of C$68,587
has been awarded for the financial year ended 30 June 2022 (2021: C$59,338). Payment of the salary
increase and bonus will be deferred until satisfaction of certain KPIs.
62
2022 LEPIDICO ANNUAL REPORT Termination of the employment agreement requires 3 months written notice. Upon termination, the CFO is
entitled to receive from the Company all payments owed to her under the employment agreement up to and
including the date of termination and any payments due to her pursuant to any relevant legislation by way of
accrued annual leave and long service leave. If the Company terminates the agreement for any reason other
than for cause the CFO will receive 1 month’s salary at the time of termination for every year of employment
with the Company to a maximum of 6 months’ payment (extendable up to 12 months under certain
prescribed events).
Mr Peter Walker, General Manager – Project Development (GMP) has an employment agreement with the
Group. The agreement specifies duties and obligations to be fulfilled as GMP and provides for an annual
review of base remuneration taking into account performance. Mr Walker is employed on a casual basis
based on the number of days worked and earned a salary of GBP221,020 for the financial year (2021:
GBP137,900). Mr Walker did not receive an increase to base rate during the reporting period. A monetary
bonus of GBP51,365 has been awarded for the financial year ended 30 June 2022 (2021: C$32,407). Effective
from 1 September, Mr Walker’s role transitioned to Technical Advisor the Board.
Termination of the employment agreement requires 1 months written notice. Upon termination, the GMP is
entitled to receive from the Company all payments owed to him under the employment agreement up to and
including the date of termination.
Ms Benedicta Uris, General Manager – Sustainability & Country Affairs – Namibia (SCA) has an employment
agreement with the Group commencing 20 April 2022. The agreement specifies duties and obligations to be
fulfilled as SCA and provides for an annual review of base remuneration taking into account performance. Ms
Uris’ remuneration includes a salary of N$2,800,000 per annum. Ms Uris did not receive an increase to base
salary during the reporting period; however an increase in base salary to N$3,022,222 was awarded effective
from 1 July 2022. A monetary bonus of N$162,680 has been awarded for the financial year ended 30 June
2022. Payment of the salary increase and bonus will be deferred until satisfaction of certain KPIs.
Termination of the employment agreement requires 3 months written notice. Upon termination, the SCA is
entitled to receive from the Company all payments owed to her under the employment agreement up to and
including the date of termination and any payments due to her pursuant to any relevant legislation by way of
accrued annual leave and long service leave.
D. Share Based Compensation
Share Holdings
The number of shares and options over ordinary shares in the Group held during the financial year by each
director of Lepidico Ltd and other KMP of the Group, including their personally related parties, are set out below:
2022
Balance at
start of year
Purchased
Exercised
Options
Sold
Other Net
Change
Balance at
end of year
Non-Executive Directors
Mr Gary Johnson
370,618,485
Mr Mark Rodda
Ms Cynthia Thomas
-
-
Executive Directors
Mr Joe Walsh
33,108,572
Key Management
-
-
-
-
8,674,569
(43,934,728)
7,500,000
(7,500,000)
7,500,000
(7,500,000)
15,360,000
(13,000,000)
Mr Tom Dukovcic
6,602,958
666,666
10,005,488
(10,666,666)
Ms Shontel Norgate
5,564,022
Ms Benedicta Uris
Mr Peter Walker
Mr Alex Neuling
-
-
3,898,495
-
-
-
-
10,000,000
(1,250,000)
-
-
-
-
-
-
Total
419,792,532
666,666
59,040,057
(83,851,394)
-
-
-
-
-
-
-
-
-
-
335,358,326
-
-
35,468,572
6,608,446
14,314,022
-
-
3,898,495
395,647,861
63
2022 LEPIDICO ANNUAL REPORT Option Holdings
2022
Granted
during the
year as
remuneration
Balance at
start of year
Exercised
during year
Expired
during year
Balance at
end of year
* Vested and
exercisable
at end of year
Non-Executive Directors
Mr Gary Johnson
28,433,188
7,500,000
(8,674,569)
(3,330,664)
23,927,955
23,927,955
Mr Mark Rodda
22,500,000
7,500,000
(7,500,000)
Ms Cynthia Thomas
22,500,000
7,500,000
(7,500,000)
-
-
22,500,000
22,500,000
22,500,000
22,500,000
Executive Directors
Mr Joe Walsh
46,429,286
15,000,000
(15,360,000)
(125,000)
45,944,286
45,944,286
Key Management
Mr Tom Dukovcic
30,283,284
10,000,000
(10,005,488)
(277,796)
30,000,000
30,000,000
Ms Shontel Norgate
30,278,202
10,000,000
(10,000,000)
(278,202)
30,000,000
30,000,000
Ms Benedicta Uris
-
-
Mr Peter Walker
10,000,000
10,000,000
Mr Alex Neuling
4,171,757
-
-
-
-
-
-
-
-
-
20,000,000
20,000,000
4,171,757
4,171,757
Total
194,595,717
67,500,000
(59,040,057)
(4,011,662)
199,043,998
199,043,998
Details of the share options granted during the year as remuneration are disclosed in Note 18(b) as approved
by shareholders at the Company’s Annual General Meeting in November 2021.
This report is made in accordance with a resolution of the directors made pursuant to section 298(2) of the
Corporations Act 2001.
Joe Walsh
Managing Director
Dated this 22nd day of September 2022.
64
2022 LEPIDICO ANNUAL REPORT AUDITORS INDEPENDENCE DECLARATION UNDER SECTION
307C OF THE CORPORATIONS ACT 2001 TO THE DIRECTORS
OF LEPIDICO LIMITED
I declare that, to the best of my knowledge and belief, during the year ended 30 June 2022 there has been:
a)
no contraventions of the auditor independence requirements of the Corporations Act 2001 in relation to
the audit; and
b) no contraventions of any applicable code of professional conduct in relation to the audit.
Neil Pace
Partner
MOORE AUSTRALIA AUDIT (WA)
Chartered Accountants
Signed at Perth this 22nd day of September 2022.
Moore Australia Audit (WA) – ABN 16 874 357 907.
An independent member of Moore Global Network Limited - members in principal cities throughout the world.
Liability limited by a scheme approved under Professional Standards Legislation.
65
2022 LEPIDICO ANNUAL REPORT Consolidated Statement of Profit and Loss and Other Comprehensive Income
as at 30 June 2022
Continuing Operations
Other income
Business development expenses
Administrative expenses
Employment benefits
Depreciation
Share based payments
Accretion expense
Finance costs
Exploration and evaluation expenditure expensed
Realised foreign exchange gain/(loss)
Loss before income tax
Note
2022
$
2021
$
4
5
11,861
4,137,670
(680,048)
(376,399)
(2,032,681)
(1,318,832)
(2,121,351)
(1,639,182)
(411,213)
(278,862)
(1,822,500)
(337,500)
-
(434,122)
(393,003)
(452,275)
-
(408)
37,742
(63,248)
(7,863,468)
(310,883)
Income tax benefit/(expense)
6
(77,872)
593,439
Profit/(Loss) from continuing operations after tax
(7,941,340)
282,556
Other comprehensive income
Items that may be reclassified subsequently to profit or loss
Exchange differences on translating foreign operations
159,065
473,181
Total comprehensive loss for the year
(7,782,275)
755,737
Comprehensive profit/(loss) for the year attributable to:
Owners of the parent
Non-controlling interest
(7,550,699)
904,916
(231,576)
(149,179)
(7,782,275)
755,737
Gain/(Loss) per share for the year attributable
to the members of Lepidico Ltd
Basic and diluted profit/(loss) per share
8
(0.00127)
0.00006
The accompanying notes form part of these financial statements.
66
2022 LEPIDICO ANNUAL REPORT Consolidated Statement of Financial Position
as at 30 June 2022
Note
2022
$
2021
$
ASSETS
CURRENT ASSETS
Cash and cash equivalents
Trade and other receivables
TOTAL CURRENT ASSETS
NON-CURRENT ASSETS
Trade and other receivables
Property, plant and equipment
Exploration and evaluation expenditure
Intangible asset
TOTAL NON-CURRENT ASSETS
TOTAL ASSETS
LIABILITIES
CURRENT LIABILITIES
Trade and other payables
Provisions
Lease Liabilities
Deferred Revenue
TOTAL CURRENT LIABILITIES
NON-CURRENT LIABILITIES
Provisions
Lease Liabilities
Deferred Revenue
Deferred Tax Liability
TOTAL NON-CURRENT LIABILITIES
TOTAL LIABILITIES
NET ASSETS
EQUITY
Issued capital
Reserves
Equity component of convertible note
Accumulated losses
Equity attributable to owners of the Parent
Non-controlling interests
9
10
10
11
12
13
14
15
16
17
15
16
17
6
18
19
8,042,822
14,738,020
2,204,232
243,786
10,247,054
14,981,806
632,379
71,489
8,590,777
1,669,081
46,763,770
43,986,682
29,065,361
24,631,056
85,052,287
70,358,308
95,299,341
85,340,114
1,986,170
178,697
279,751
6,613,159
967,684
140,105
-
-
9,057,777
1,107,789
670,970
6,744,318
-
2,384,718
-
-
6,071,577
3,211,069
9,800,006
9,282,646
18,857,783
10,390,435
76,441,558
74,949,679
102,655,726
94,656,278
8,044,715
6,610,944
990,000
990,000
(41,653,272)
(33,943,508)
70,037,169
68,313,714
6,404,389
6,635,965
TOTAL SHAREHOLDERS EQUITY
76,441,558
74,949,679
The accompanying notes form part of these financial statements.
67
2022 LEPIDICO ANNUAL REPORT
Consolidated Statement of Changes in Equity
for the Year ended 30 June 2022
$
$
$
$
t
s
e
r
e
t
n
I
l
a
t
o
T
s
e
s
s
o
L
l
a
t
o
T
y
t
i
u
q
E
n
o
N
g
n
i
l
l
o
r
t
n
o
C
l
d
e
t
a
u
m
u
c
c
A
,
4
4
1
5
8
7
6
,
,
1
7
0
4
0
4
2
5
,
)
,
3
4
2
5
7
3
4
3
,
(
$
e
t
o
n
y
t
i
u
q
E
t
n
e
n
o
p
m
o
c
l
e
b
i
t
r
e
v
n
o
c
f
o
s
e
v
r
e
s
e
R
$
$
$
$
i
n
g
e
r
o
F
y
c
n
e
r
r
u
C
s
t
n
a
r
r
a
W
s
n
o
i
t
p
O
d
e
u
s
s
I
l
a
t
i
p
a
C
0
0
0
,
0
9
9
8
8
4
,
7
7
3
5
3
1
,
5
1
4
7
9
0
,
5
1
9
,
4
4
9
5
,
1
8
0
,
0
8
l
0
2
0
2
y
u
J
1
t
a
e
c
n
a
a
B
l
-
6
5
5
2
8
2
,
1
8
1
3
7
4
,
3
7
6
8
4
4
,
8
9
8
2
4
,
,
5
1
2
9
8
1
9
5
,
,
6
5
1
3
1
5
4
1
,
,
9
7
6
9
4
9
4
7
,
,
)
0
4
3
1
4
9
7
(
,
4
6
0
9
5
1
,
,
0
0
5
2
2
8
1
,
,
5
5
6
1
5
4
7
,
-
,
8
5
5
1
4
4
6
7
,
)
9
7
1
9
4
1
,
(
-
-
-
-
-
,
5
6
9
5
3
6
6
,
)
6
7
5
1
3
2
,
(
-
-
-
-
,
9
8
3
4
0
4
6
,
4
6
0
9
5
1
,
,
0
0
5
2
2
8
1
,
,
5
5
6
1
5
4
7
,
-
,
9
6
1
7
3
0
0
7
,
)
,
4
6
7
9
0
7
7
,
(
-
-
-
-
)
,
4
6
7
9
0
7
7
,
(
-
-
-
-
-
-
-
-
-
4
6
0
,
9
5
1
-
-
-
-
-
-
-
0
0
5
,
2
2
8
,
1
)
3
9
7
,
7
4
5
(
-
-
-
3
9
7
,
7
4
5
5
5
6
,
1
5
4
,
7
s
s
o
l
i
e
v
s
n
e
h
e
r
p
m
o
c
r
e
h
t
O
r
a
e
y
e
h
t
r
o
f
)
s
s
o
L
(
/
t
fi
o
r
P
i
d
e
s
c
r
e
x
e
s
n
o
i
t
p
O
d
e
u
s
s
i
s
n
o
i
t
p
O
i
d
e
s
c
r
e
x
e
s
n
o
i
t
p
o
f
o
e
u
a
v
l
r
i
a
F
,
)
2
7
2
3
5
6
1
4
(
,
0
0
0
,
0
9
9
3
3
7
,
9
0
0
,
1
5
3
1
,
5
1
4
7
4
8
,
9
1
6
,
6
6
2
7
,
5
5
6
,
2
0
1
2
2
0
2
e
n
u
J
0
3
t
a
e
c
n
a
a
B
l
.
s
t
n
e
m
e
t
a
t
s
l
i
a
c
n
a
n
fi
e
s
e
h
t
f
o
t
r
a
p
m
r
o
f
i
s
e
t
o
n
g
n
y
n
a
p
m
o
c
c
a
e
h
T
-
1
8
1
3
7
4
,
3
7
6
8
4
4
,
8
9
8
2
4
,
,
6
5
1
3
1
5
4
1
,
-
-
-
-
-
5
3
7
1
3
4
,
5
3
7
1
3
4
,
-
-
-
-
-
-
-
-
-
-
-
1
8
1
,
3
7
4
-
-
-
-
-
-
-
-
-
3
7
6
,
8
4
4
)
0
3
6
,
8
1
(
-
-
-
8
9
8
,
2
4
0
3
6
,
8
1
s
s
o
l
i
e
v
s
n
e
h
e
r
p
m
o
c
r
e
h
t
O
r
a
e
y
e
h
t
r
o
f
)
s
s
o
L
(
/
t
fi
o
r
P
i
d
e
s
c
r
e
x
e
s
n
o
i
t
p
O
d
e
u
s
s
i
s
n
o
i
t
p
O
i
d
e
s
c
r
e
x
e
s
n
o
i
t
p
o
f
o
e
u
a
v
l
r
i
a
F
-
6
5
1
,
3
1
5
,
4
1
d
e
u
s
s
i
s
e
r
a
h
S
,
4
1
7
3
1
3
8
6
,
,
)
8
0
5
3
4
9
3
3
(
,
0
0
0
,
0
9
9
9
6
6
,
0
5
8
5
3
1
,
5
1
4
0
4
1
,
5
4
3
,
5
8
7
2
,
6
5
6
,
4
9
1
2
0
2
e
n
u
J
0
3
t
a
e
c
n
a
a
B
l
y
n
a
p
m
o
C
e
h
t
f
o
s
r
e
n
w
o
e
h
t
o
t
e
b
a
t
u
b
i
r
t
t
A
l
68
2022 LEPIDICO ANNUAL REPORT
Consolidated Statement of Cash Flow
for the Year ended 30 June 2022
CASH FLOWS FROM OPERATING ACTIVITIES
Proceeds from technology licence holder
Receipts from government assistance programs
Payments to suppliers and employees
Payment of land lease deposit
Interest received
Note
2022
$
2021
$
-
-
4,084,027
53,421
(4,969,220)
(3,101,060)
(514,769)
1,442
-
222
Net cash provided by/(used in) operating activities
23
(5,482,547)
1,036,610
CASH FLOWS FROM INVESTING ACTIVITIES
Payments for exploration and evaluation activities
Payments for research and development activities
Proceeds from research and development tax credit
Payments for property, plant and equipment
Proceeds from property, plant and equipment
Payments for acquisition of Bright Minz Pty Ltd
(3,063,640)
(5,478,367)
(998,874)
(692,844)
-
1,243,863
(98,586)
9,562
(92,283)
-
-
(10,000)
Net cash used in investing activities
(8,631,031)
(550,138)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issue of shares (net of costs)
Proceeds from exercise of options (net of costs)
Repayment of convertible note
-
14,595,619
7,432,350
111,394
-
(5,176,401)
Net cash provided by financing activities
7,432,350
9,530,612
Net increase/(decrease) in cash held
(6,681,228)
10,017,084
$
-
-
-
-
-
-
Cash at beginning of financial year
14,738,020
4,792,713
Effect of foreign exchange rate changes
(13,970)
(71,777)
Cash at end of financial year
9
8,042,822
14,738,020
The accompanying notes form part of these financial statements.
69
$
$
$
$
$
$
$
l
a
t
o
T
y
t
i
u
q
E
n
o
N
g
n
i
l
l
o
r
t
n
o
C
t
s
e
r
e
t
n
I
l
a
t
o
T
s
e
s
s
o
L
d
e
t
a
l
u
m
u
c
c
A
n
g
i
e
r
o
F
y
c
n
e
r
r
u
C
s
t
n
a
r
r
a
W
s
n
o
i
t
p
O
d
e
u
s
s
I
l
a
t
i
p
a
C
$
e
t
o
n
y
t
i
u
q
E
t
n
e
n
o
p
m
o
c
e
l
b
i
t
r
e
v
n
o
c
f
o
y
n
a
p
m
o
C
e
h
t
f
o
s
r
e
n
w
o
e
h
t
o
t
e
l
b
a
t
u
b
i
r
t
t
A
s
e
v
r
e
s
e
R
5
1
2
,
9
8
1
,
9
5
4
4
1
,
5
8
7
,
6
1
7
0
,
4
0
4
,
2
5
)
3
4
2
,
5
7
3
,
4
3
(
0
0
0
,
0
9
9
8
8
4
,
7
7
3
5
3
1
,
5
1
4
7
9
0
,
5
1
9
,
4
4
9
5
,
1
8
0
,
0
8
0
2
0
2
y
l
u
J
1
t
a
e
c
n
a
l
a
B
6
5
5
,
2
8
2
1
8
1
,
3
7
4
3
7
6
,
8
4
4
8
9
8
,
2
4
-
-
4
6
0
,
9
5
1
0
0
5
,
2
2
8
,
1
5
5
6
,
1
5
4
,
7
-
-
-
-
-
-
-
-
-
1
8
1
,
3
7
4
3
7
6
,
8
4
4
8
9
8
,
2
4
-
-
4
6
0
,
9
5
1
0
0
5
,
2
2
8
,
1
5
5
6
,
1
5
4
,
7
-
-
-
-
-
-
-
-
-
6
5
1
,
3
1
5
,
4
1
6
5
1
,
3
1
5
,
4
1
)
0
4
3
,
1
4
9
,
7
(
)
6
7
5
,
1
3
2
(
)
4
6
7
,
9
0
7
,
7
(
)
4
6
7
,
9
0
7
,
7
(
)
9
7
1
,
9
4
1
(
5
3
7
,
1
3
4
5
3
7
,
1
3
4
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
1
8
1
,
3
7
4
4
6
0
,
9
5
1
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
3
7
6
,
8
4
4
8
9
8
,
2
4
)
0
3
6
,
8
1
(
0
3
6
,
8
1
d
e
s
i
c
r
e
x
e
s
n
o
i
t
p
o
f
o
e
u
l
a
v
r
i
a
F
6
5
1
,
3
1
5
,
4
1
d
e
u
s
s
i
s
e
r
a
h
S
s
s
o
l
e
v
i
s
n
e
h
e
r
p
m
o
c
r
e
h
t
O
r
a
e
y
e
h
t
r
o
f
)
s
s
o
L
(
/
t
fi
o
r
P
d
e
s
i
c
r
e
x
e
s
n
o
i
t
p
O
d
e
u
s
s
i
s
n
o
i
t
p
O
0
0
5
,
2
2
8
,
1
5
5
6
,
1
5
4
,
7
)
3
9
7
,
7
4
5
(
3
9
7
,
7
4
5
d
e
s
i
c
r
e
x
e
s
n
o
i
t
p
o
f
o
e
u
l
a
v
r
i
a
F
s
s
o
l
e
v
i
s
n
e
h
e
r
p
m
o
c
r
e
h
t
O
r
a
e
y
e
h
t
r
o
f
)
s
s
o
L
(
/
t
fi
o
r
P
d
e
s
i
c
r
e
x
e
s
n
o
i
t
p
O
d
e
u
s
s
i
s
n
o
i
t
p
O
9
7
6
,
9
4
9
,
4
7
5
6
9
,
5
3
6
,
6
4
1
7
,
3
1
3
,
8
6
)
8
0
5
,
3
4
9
,
3
3
(
0
0
0
,
0
9
9
9
6
6
,
0
5
8
5
3
1
,
5
1
4
0
4
1
,
5
4
3
,
5
8
7
2
,
6
5
6
,
4
9
1
2
0
2
e
n
u
J
0
3
t
a
e
c
n
a
l
a
B
8
5
5
,
1
4
4
,
6
7
9
8
3
,
4
0
4
,
6
9
6
1
,
7
3
0
,
0
7
)
2
7
2
,
3
5
6
,
1
4
(
0
0
0
,
0
9
9
3
3
7
,
9
0
0
,
1
5
3
1
,
5
1
4
7
4
8
,
9
1
6
,
6
6
2
7
,
5
5
6
,
2
0
1
2
2
0
2
e
n
u
J
0
3
t
a
e
c
n
a
l
a
B
.
s
t
n
e
m
e
t
a
t
s
l
a
i
c
n
a
n
fi
e
s
e
h
t
f
o
t
r
a
p
m
r
o
f
s
e
t
o
n
g
n
i
y
n
a
p
m
o
c
c
a
e
h
T
2022 LEPIDICO ANNUAL REPORT
Notes to the Financial Statements
for the Year ended 30 June 2022
Note 1: Statement of Significant Accounting Policies
The financial report is a general purpose financial report that has been prepared in accordance with Australian
Accounting Standards, including Australian Accounting Interpretations, other authoritative pronouncements of
the Australian Accounting Standards Board and the Corporations Act 2001.
The financial report covers Lepidico Ltd and its controlled entities (the Group or Consolidated Entity or
Economic Entity). Lepidico Ltd is a listed public company, incorporated and domiciled in Australia. The
financial report of the Group complies with all Australian equivalents to International Financial Reporting
Standards (AIFRS) in their entirety.
The following is a summary of the material accounting policies adopted by the Consolidated Entity in
the preparation of the financial report. The accounting policies have been consistently applied, unless
otherwise stated.
Basis of Preparation
Reporting Basis and Conventions
The financial report has been prepared on an accruals basis and is based on historical costs modified by the
revaluation of selected non-current assets, and financial assets and financial liabilities for which the fair value
basis of accounting has been applied.
The financial statements were authorised for issue on 22nd September 2022 by the Directors of the Company.
The Directors have the power to amend and re-issue the financial report. The Group is a for-profit entity for
financial reporting purposes under Australian Accounting Standards.
Accounting Policies
(a)
Going Concern
The financial statements have been prepared on the going concern basis, which contemplates the
continuity of normal business activity and the realisation of assets and the settlement of liabilities in the
normal course of business. The ability of the Group to continue as a going concern is dependent on the
Company being able to continue to raise additional funds as required to meet ongoing exploration and
development programs and working capital. Further, the consequences of the COVID-19 pandemic have
negatively impacted the global economy and created volatile market dynamics.
For the year ended 30 June 2022, the Group incurred a net loss after tax of $7,941,340 and a net cash
outflow from operations of $5,482,547. At 30 June 2022, the Company had net current assets of $1,189,277.
The financial report has been prepared on a going concern basis which the Directors consider to be
appropriate as they believe that the Group will be able to raise additional capital as required based on
existing standby equity raising facilities in place and the successful outcome of previous Entitlement
Offers. The Company is well advanced in its discussions with financial institutions in relation to securing
debt financing for the Phase 1 Project. There remains ongoing interest in the Company and the long term
outlook for the lithium industry remains robust.
While the Company has been successful in securing financing in the past, there can be no assurance
that it will be able to do so in the future. The Company’s opinion concerning its ability to secure future
financing options is based on currently available information. To the extent that this information proves to
be inaccurate, or the COVID-19 pandemic continues for a prolonged period of time and/or impacts capital
markets further the future availability of financing may be adversely affected.
(b) Principles of Consolidation
The consolidated financial statements incorporate all the assets, liabilities and results of the parent
(Lepidico Ltd) and all of the subsidiaries (including any structured entities). 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 the subsidiaries is provided in Note 2.
The assets, liabilities and results of all subsidiaries are fully consolidated into the financial statements of
the Group from the date on which control is obtained by the Group. The consolidation of a subsidiary is
discontinued from the date that control ceases. Intercompany transactions, balances and unrealised gains
or losses on transactions between group entities are fully eliminated on consolidation. Accounting policies
of subsidiaries have been changed and adjustments made where necessary to ensure uniformity of the
accounting policies adopted by the Group.
70
2022 LEPIDICO ANNUAL REPORT
Note 1: Statement of Significant Accounting Policies (continued)
(b) Principles of Consolidation (continued)
Equity interests in a subsidiary not attributable, directly or indirectly, to the Group are presented as
“non-controlling interests”. The Group initially recognises non-controlling interests that are present
ownership interests in subsidiaries and are entitled to a proportionate share of the subsidiary’s net
assets on liquidation at either fair value or at the non-controlling interests’ proportionate share of the
subsidiary’s net assets. Subsequent to initial recognition, non-controlling interests are attributed their
share of profit or loss and each component of other comprehensive income. Non-controlling interests
are shown separately within the equity section of the statement of financial position and statement of
comprehensive income.
(c) Business Combinations
Business combinations occur where an acquirer obtains control over one or more businesses.
A business combination is accounted for by applying the acquisition method, unless it is a combination
involving entities or businesses under common control. The business combination will be accounted
for from the date that control is attained, whereby the fair value of the identifiable assets acquired and
liabilities (including contingent liabilities) assumed is recognised (subject to certain limited exemptions).
When measuring the consideration transferred in the business combination, any asset or liability
resulting from a contingent consideration arrangement is also included. Subsequent to initial recognition,
contingent consideration classified as equity is not remeasured and its subsequent settlement is
accounted for within equity. Contingent consideration classified as an asset or liability is remeasured
in each reporting period to fair value, recognising any change to fair value in profit or loss, unless the
change in value can be identified as existing at acquisition date.
All transaction costs incurred in relation to business combinations, other than those associated with the
issue of a financial instrument, are recognised as expenses in profit or loss when incurred.
The acquisition of a business may result in the recognition of goodwill or a gain from a bargain purchase.
(d) Goodwill
Goodwill is carried at cost less any accumulated impairment losses. Goodwill is calculated as the excess
of the sum of:
i)
ii)
iii)
the consideration transferred;
any non-controlling interest (determined under either the full goodwill or proportionate interest
method); and
the acquisition date fair value of any previously held equity interest; over the acquisition date fair
value of net identifiable assets acquired
The acquisition date fair value of the consideration transferred for a business combination plus the
acquisition date fair value of any previously held equity interest shall form the cost of the investment in
the separate financial statements.
Fair value re-measurements in any pre-existing equity holdings are recognised in profit or loss in the
period in which they arise. Where changes in the value of such equity holdings had previously been
recognised in other comprehensive income, such amounts are recycled to profit or loss. The amount
of goodwill recognised on acquisition of each subsidiary in which the Group holds less than a 100%
interest will depend on the method adopted in measuring the non-controlling interest. The Group
can elect in most circumstances to measure the non-controlling interest in the acquiree either at fair
value (full goodwill method) or at the non-controlling interest's proportionate share of the subsidiary's
identifiable net assets (proportionate interest method).
In such circumstances, the Group determines which method to adopt for each acquisition and this is
stated in the respective notes to these financial statements disclosing the business combination. Under the
full goodwill method, the fair value of the non-controlling interests is determined using valuation techniques
which make the maximum use of market information where available. Under this method, goodwill
attributable to the non-controlling interests is recognised in the consolidated financial statements.
Goodwill on acquisition of subsidiaries is included in intangible assets. Goodwill on acquisition of
associates is included in investments in associates. Goodwill is tested for impairment annually and
is allocated to the Group's cash-generating units or groups of cash-generating units, representing
the lowest level at which goodwill is monitored being not larger than an operating segment. Gains
and losses on the disposal of an entity include the carrying amount of goodwill related to the entity
disposed of. Changes in the ownership interests in a subsidiary that do not result in a loss of control are
accounted for as equity transactions and do not affect the carrying amounts of goodwill.
71
2022 LEPIDICO ANNUAL REPORT
Note 1: Statement of Significant Accounting Policies (continued)
e)
Income Tax
The charge for current income tax expense is based on the profit for the year adjusted for any
non-assessable or disallowed items. It is calculated using tax rates that have been enacted or are
substantively enacted by the balance sheet date.
Deferred tax is accounted for using the balance sheet liability method in respect of temporary differences
arising between the tax bases of assets and liabilities and their carrying amounts in the financial
statements. No deferred income tax will be recognised from the initial recognition of an asset or liability,
excluding a business combination, where there is no effect on accounting or taxable profit or loss.
Deferred tax is calculated at the tax rates that are expected to apply to the period when the asset
is realised or liability is settled. Deferred tax is credited in the statement of comprehensive income
except where it relates to items that may be credited directly to equity, in which case the deferred tax is
adjusted directly against equity.
Deferred income tax assets are recognised to the extent that it is probable that future tax profits will be
available against which deductible temporary differences can be utilised.
The amount of benefits brought to account or which may be realised in the future is based on the
assumption that no adverse change will occur in income taxation legislation and the anticipation that the
Consolidated Entity will derive sufficient future assessable income to enable the benefit to be realised
and comply with the conditions of deductibility imposed by the law.
(f) Property, Plant and Equipment
Each class of plant and equipment is carried at cost or fair value less, where applicable, any
accumulated depreciation and impairment losses.
Plant and equipment are measured on the cost basis less depreciation and impairment losses.
The carrying amount of plant and equipment is reviewed annually by directors to ensure it is not in
excess of the recoverable amount from these assets. The recoverable amount is assessed on the basis
of the expected net cash flows which will be received from the assets’ employment and subsequent
disposal. The expected net cash flows have been discounted to their present values in determining
recoverable amounts.
The cost of fixed assets constructed within the Consolidated Entity includes the cost of materials, direct
labour, borrowing costs and an appropriate proportion of fixed and variable overheads.
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 group and the cost of the item can be measured reliably. All other repairs and maintenance
are charged to the statement of comprehensive income during the financial period in which they are
incurred.
Depreciation
The depreciable amount of all fixed assets including capitalised lease assets is depreciated on a
straight-line basis over their useful lives to the Consolidated Entity commencing from the time the asset
is held ready for use. Leasehold improvements are depreciated over the shorter of either the unexpired
period of the lease or the estimated useful lives of the improvements.
The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at each balance
sheet date.
An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying
amount is greater than its estimated recoverable amount.
Gains and losses on disposals are determined by comparing proceeds with the carrying amount. These
gains or losses are included in the statement of comprehensive income. When re-valued assets are sold,
amounts included in the revaluation reserve relating to that asset are transferred to retained earnings.
72
2022 LEPIDICO ANNUAL REPORT
Note 1: Statement of Significant Accounting Policies (continued)
(g) Leases (the Group as lessee)
At inception of a contract, the Group assesses if the contract contains or is a lease. If there is a lease
present, a right-of-use asset and a corresponding lease liability is recognised by the Group where the
Group is a lessee. However all contracts that are classified as short-term leases (lease with remaining
lease term of 12 months or less) and leases of low value assets are recognised as an operating expense
on a straight-line basis over the term of the lease.
Initially the lease liability is measured at the present value of the lease payments still to be paid at
commencement date. The lease payments are discounted at the interest rate implicit in the lease. If this
rate cannot be readily determined, the Group uses the incremental borrowing rate.
Lease payments included in the measurement of the lease liability are as follows:
• fixed lease payments less any lease incentives;
•
variable lease payments that depend on an index or rate, initially measured using the index or rate at
the commencement date;
• the amount expected to be payable by the lessee under residual value guarantees;
• the exercise price of purchase options, if the lessee is reasonably certain to exercise the options;
•
•
lease payments under extension options if lessee is reasonably certain to exercise the options; and
payments of penalties for terminating the lease, if the lease term reflects the exercise of an option to
terminate the lease.
The right-of-use assets comprise the initial measurement of the corresponding lease liability, as
mentioned above, any lease payments made at or before the commencement date as well as
any initial direct costs. The subsequent measurement of the right-of-use assets is at cost less
accumulated depreciation and impairment losses.
Right-of-use assets are depreciated over the lease term or useful life of the underlying asset whichever
is the shortest.
The present value of the lease liability is increased by the interest cost and decreased by the lease
payment each period over the life of the lease. The Group includes right of use leased assets separately
in Property, Plant, Equipment disclosures. All new contracts of the Group are assessed on an ongoing
basis to determine if a right of use asset exists and if they require recognition under the requirements of
the lease standard.
Where a lease transfers ownership of the underlying asset or the cost of the right-of-use asset reflects
that the Group anticipates to exercise a purchase option, the specific asset is depreciated over the
useful life of the underlying asset.
(h) Exploration and Development Expenditure
Exploration, evaluation and development expenditure incurred is accumulated in respect of each
identifiable area of interest. These costs are only carried forward to the extent that they are expected
to be recouped 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.
Accumulated costs in relation to an abandoned area are written off in full against profit in the year in
which the decision to abandon the area is made.
When production commences, the accumulated costs for the relevant area of interest are amortised over
the life of the area according to the rate of depletion of the economically recoverable reserves.
A regular review is undertaken of each area of interest to determine the appropriateness of continuing to
carry forward costs in relation to that area of interest.
Costs of site restoration are provided over the life of the facility 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 clauses of the mining permits. Such costs have been determined using estimates of
future costs, current legal requirements and technology on an undiscounted basis.
73
2022 LEPIDICO ANNUAL REPORT
Note 1: Statement of Significant Accounting Policies (continued)
(h) Exploration and Development Expenditure (continued)
Any changes in the estimates for the costs of site restoration 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.
(i) Fair Value of Assets and Liabilities
The Group measures some of its assets and liabilities at fair value on either a recurring or non-recurring
basis, depending on the requirements of the applicable Accounting Standard.
Fair value is the price the Group would receive to sell 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.
To the extent possible, market information is extracted from either the principal market for the asset
or liability (i.e. the market with the greatest volume and level of activity for the asset or liability) or, in
the absence of such a market, the most advantageous market available to the entity at the end of the
reporting period (i.e. the market that maximises the receipts from the sale of the asset or minimises the
payments made to transfer the liability, after taking into account transaction costs and transport costs).
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.
The fair value of liabilities and the entity’s own equity instruments (excluding those related to share-
based payment arrangements) may be valued, where there is no observable market price in relation
to the transfer of such financial instrument, by reference to observable market information where such
instruments are held as assets. Where this information is not available, other valuation techniques are
adopted and, where significant, are detailed in the respective note to the financial statements.
(j) Financial Instruments
Initial recognition and measurement
Financial assets and financial liabilities are recognised when the Group becomes a party to the
contractual provisions to the instrument. For financial assets, this is the date that the Group commits
itself to either the purchase or sale of the asset (ie trade date accounting is adopted).
Financial instruments (except for trade receivables) are initially measured at fair value plus transaction
costs, except where the instrument is classified "at fair value through profit or loss", in which case
transaction costs are expensed to profit or loss immediately. Where available, quoted prices in an active
market are used to determine fair value. In other circumstances, valuation techniques are adopted.
Trade receivables are initially measured at the transaction price if the trade receivables do not contain a
significant financing component or if the practical expedient was applied as specified in AASB 15.63.
Classificationandsubsequentmeasurement
Financial liabilities
Financial instruments are subsequently measured at:
• amortised cost; or
• fair value through profit or loss.
A financial liability is measured at fair value through profit and loss if the financial liability is:
• a contingent consideration of an acquirer in a business combination to which AASB 3: Business
Combinations applies;
• held for trading; or
• initially designated as at fair value through profit or loss.
All other financial liabilities are subsequently measured at amortised cost using the effective
interest method.
74
2022 LEPIDICO ANNUAL REPORT
Note 1: Statement of Significant Accounting Policies (continued)
(j) Financial Instruments (continued)
The effective interest method is a method of calculating the amortised cost of a debt instrument and
of allocating interest expense in profit or loss over the relevant period. The effective interest rate is the
internal rate of return of the financial asset or liability. That is, it is the rate that exactly discounts the
estimated future cash flows through the expected life of the instrument to the net carrying amount at
initial recognition.
it is incurred for the purpose of repurchasing or repaying in the near term;
A financial liability is held for trading if:
•
• part of a portfolio where there is an actual pattern of short-term profit taking; or
•
a derivative financial instrument (except for a derivative that is in a financial guarantee contract or a
derivative that is in effective hedging relationships).
Any gains or losses arising on changes in fair value are recognised in profit or loss to the extent that they
are not part of a designated hedging relationship are recognised in profit or loss.
The change in fair value of the financial liability attributable to changes in the issuer's credit risk is taken
to other comprehensive income and are not subsequently reclassified to profit or loss. Instead, they are
transferred to retained earnings upon derecognition of the financial liability. If taking the change in credit
risk in other comprehensive income enlarges or creates an accounting mismatch, then these gains or
losses should be taken to profit or loss rather than other comprehensive income.
A financial liability cannot be reclassified.
Financial assets
Financial assets are subsequently measured at:
• amortised cost;
•
•
fair value through other comprehensive income; or
fair value through profit or loss.
Measurement is on the basis of two primary criteria:
• the contractual cash flow characteristics of the financial asset; and
• the business model for managing the financial assets.
A financial asset that meets the following conditions is subsequently measured at amortised cost:
• the financial asset is managed solely to collect contractual cash flows; and
•
the contractual terms within the financial asset give rise to cash flows that are solely payments of
principal and interest on the principal amount outstanding on specified dates.
A financial asset that meets the following conditions is subsequently measured at fair value through
other comprehensive income:
•
the contractual terms within the financial asset give rise to cash flows that are solely payments of
principal and interest on the principal amount outstanding on specified dates; and
the business model for managing the financial assets comprises both contractual cash flows
collection and the selling of the financial asset.
•
By default, all other financial assets that do not meet the measurement conditions of amortised cost
and fair value through other comprehensive income are subsequently measured at fair value through
profit or loss.
The Group initially designates a financial instrument as measured at fair value through profit or loss if:
•
it eliminates or significantly reduces a measurement or recognition inconsistency (often referred to as
“accounting mismatch”) that would otherwise arise from measuring assets or liabilities or recognising
the gains and losses on them on different bases;
it is in accordance with the documented risk management or investment strategy, and information
about the groupings was documented appropriately, so that the performance of the financial liability
that was part of a group of financial liabilities or financial assets can be managed and evaluated
consistently on a fair value basis; and
it is a hybrid contract that contains an embedded derivative that significantly modifies the cash flows
otherwise required by the contract.
•
•
The initial designation of the financial instruments to measure at fair value through profit or loss is a one-
time option on initial classification and is irrevocable until the financial asset is derecognised.
75
2022 LEPIDICO ANNUAL REPORT
Note 1: Statement of Significant Accounting Policies (continued)
(j) Financial Instruments (continued)
Equity instruments
At initial recognition, as long as the equity instrument is not held for trading and not a contingent
consideration recognised by an acquirer in a business combination to which AASB 3:Business
Combinations applies, the Group made an irrevocable election to measure any subsequent changes in
fair value of the equity instruments in other comprehensive income, while the dividend revenue received
on underlying equity instruments investment will still be recognised in profit or loss.
Regular way purchases and sales of financial assets are recognised and derecognised at settlement
date in accordance with the Group's accounting policy.
Derecognition
Derecognition refers to the removal of a previously recognised financial asset or financial liability from the
statement of financial position.
Derecognition of financial liabilities
A liability is derecognised when it is extinguished (ie when the obligation in the contract is discharged,
cancelled or expires). An exchange of an existing financial liability for a new one with substantially
modified terms, or a substantial modification to the terms of a financial liability is treated as an
extinguishment of the existing liability and recognition of a new financial liability.
The difference between the carrying amount of the financial liability derecognised and the consideration
paid and payable, including any non-cash assets transferred or liabilities assumed, is recognised in profit
or loss.
Derecognition of financial assets
A financial asset is derecognised when the holder's contractual rights to its cash flows expires, or
the asset is transferred in such a way that all the risks and rewards of ownership are substantially
transferred.
All of the following criteria need to be satisfied for derecognition of financial asset:
• the right to receive cash flows from the asset has expired or been transferred;
• all risk and rewards of ownership of the asset have been substantially transferred; and
• the Group no longer controls the asset (ie the Group has no practical ability to make a unilateral
decision to sell the asset to a third party).
On derecognition of a financial asset measured at amortised cost, the difference between the asset's
carrying amount and the sum of the consideration received and receivable is recognised in profit or loss.
On derecognition of a debt instrument classified as at fair value through other comprehensive income,
the cumulative gain or loss previously accumulated in the investment revaluation reserve is reclassified
to profit or loss.
On derecognition of an investment in equity which was elected to be classified under fair value through
other comprehensive income, the cumulative gain or loss previously accumulated in the investment
revaluation reserve is not reclassified to profit or loss, but is transferred to retained earnings.
Impairment
The Group recognises a loss allowance for expected credit losses on:
•
financial assets that are measured at amortised cost or fair value through other comprehensive
income;
•
lease receivables;
• contract assets (eg amounts due from customers under construction contracts);
•
loan commitments that are not measured at fair value through profit or loss; and
• financial guarantee contracts that are not measured at fair value through profit or loss.
Loss allowance is not recognised for:
• financial assets measured at fair value through profit or loss; or
• equity instruments measured at fair value through other comprehensive income.
76
2022 LEPIDICO ANNUAL REPORT
Note 1: Statement of Significant Accounting Policies (continued)
Expected credit losses are the probability-weighted estimate of credit losses over the expected life of a
financial instrument. A credit loss is the difference between all contractual cash flows that are due and
all cash flows expected to be received, all discounted at the original effective interest rate of the financial
instrument.
The Group uses the general approach to impairment, as applicable under AASB 9: Financial Instruments.
Under the general approach, at each reporting period, the Group assesses whether the financial
instruments are credit-impaired, and if:
• the credit risk of the financial instrument has increased significantly since initial recognition, the Group
measures the loss allowance of the financial instruments at an amount equal to the lifetime expected
credit losses; or
• there is no significant increase in credit risk since initial recognition, the Group measures the loss
allowance for that financial instrument at an amount equal to 12-month expected credit losses.
Recognition of expected credit losses in financial statements
At each reporting date, the Group recognises the movement in the loss allowance as an impairment gain
or loss in the statement of profit or loss and other comprehensive income.
The carrying amount of financial assets measured at amortised cost includes the loss allowance relating
to that asset.
Assets measured at fair value through other comprehensive income are recognised at fair value, with
changes in fair value recognised in other comprehensive income. Amounts in relation to change in credit
risk are transferred from other comprehensive income to profit or loss at every reporting period.
For financial assets that are unrecognised (eg loan commitments yet to be drawn, financial guarantees),
a provision for loss allowance is created in the statement of financial position to recognise the loss
allowance.
(k)
Impairment of Assets
At each reporting date, the group reviews the carrying values of its tangible and intangible assets to
determine whether there is any indication that those assets have been impaired. If such an indication
exists, the recoverable amount of the asset, being the higher of the asset’s fair value less costs to sell
and value in use, is compared to the assets carrying value. Any excess of the assets carrying value over
its recoverable amount is expensed to the consolidated statement of comprehensive income.
Impairment testing is performed annually for goodwill and intangible assets with indefinite lives. Where
it is not possible to estimate the recoverable amount of an individual asset, the group estimates the
recoverable amount of the cash-generating unit to which the asset belongs.
(l) Foreign Currency Transactions and Balances
Functional and presentation currency
The functional currency of each of the group’s entities is measured using the currency of the primary
economic environment in which that Entity operates. The consolidated financial statements are
presented in Australian dollars which is the Parent Entity’s functional and presentation currency.
Transaction and Balances
Foreign currency transactions are translated into functional currency using the exchange rates prevailing
at the date of the transaction. Foreign currency monetary items are translated at the year-end exchange
rate. Non-monetary items measured at historical cost continue to be carried at the exchange rate at the
date of the transaction. Non-monetary items measured at fair value are reported at the exchange rate at
the date when fair values were determined.
Exchange differences arising on the translation of monetary items are recognised in the statement of
comprehensive income, except where deferred in equity as a qualifying cash flow or net investment
hedge. Exchange differences arising on the translation of non-monetary items are recognised directly
in equity to the extent that the gain or loss is directly recognised in equity; otherwise the exchange
difference is recognised in the statement of comprehensive income.
77
2022 LEPIDICO ANNUAL REPORT
Note 1: Statement of Significant Accounting Policies (continued)
Group companies
The financial results and position of foreign operations whose functional currency is different from the
group’s presentation currency are translated as follows:
(i) assets and liabilities are translated at year-end exchange rates prevailing at that reporting date;
(ii)
income and expenses are translated at average exchange rates for the period; and
(iii) retained profits are translated at the exchange rates prevailing at the date of the transaction.
Exchange differences arising on translation of foreign operations are transferred directly to the group’s
foreign currency translation reserve in the statement of financial position. These differences are
recognised in the statement of comprehensive income in the period in which the operation is disposed.
(m) Employee Benefits
Provision is made for the Company’s liability for employee benefits arising from services rendered by
employees to balance date. Employee benefits that are expected to be settled within one year have
been measured at the amounts expected to be paid when the liability is settled, plus related on-
costs. Employee benefits payable later than one year have been measured at the present value of the
estimated future cash outflows to be made for those benefits.
(n) Provisions
Provisions are recognised when the group has a legal or constructive obligation, as a result of past
events, for which it is probable that an outflow of economic benefits will result and that outflow can be
reliably measured.
(o) Cash and Cash Equivalents
Cash and cash equivalents includes cash on hand, deposits held at call with banks, other short-term
highly liquid investments with original maturities of three months or less, and bank overdrafts. Bank
overdrafts are shown within short-term borrowings in current liabilities on the statement of financial
position.
(p) Revenue
Revenue from the sale of goods is recognised upon delivery of goods to customers.
Interest revenue is recognised on a proportional basis taking into account the interest rates applicable to
the financial assets.
Dividend revenue is recognised when the right to receive a dividend has been established. Dividends
received from associates are accounted for in accordance with the equity method of accounting.
Revenue from the rendering of a service is recognised upon the delivery of the service to the customers.
All revenue is stated net of the amount of goods and services tax (GST).
(q) Goods and Services Tax (GST)
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. In these circumstances the GST
is recognised as part of the cost of acquisition of the asset or as part of an item of the expense.
Receivables and payables in the statement of financial position are shown inclusive of GST.
Cash flows are presented in the cash flow statement on a gross basis, except for the GST component of
investing and financing activities, which are disclosed as operating cash flows.
(r) Critical Accounting Estimates and Judgements
The Directors evaluate estimates and judgements incorporated into the financial report based on
historical knowledge and best available current information. Estimates assume a reasonable expectation
of future events and are based on current trends and economic data, obtained both externally and within
the group.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting
are recognised in the period in which the estimate is revised if the revision affects only that period, or in
the period of the revision and future periods if the revision affects both current and future periods.
78
2022 LEPIDICO ANNUAL REPORT
Note 1: Statement of Significant Accounting Policies (continued)
Key Sources of Estimation Uncertainty
The following key assumptions concerning the future, and other key sources of estimation uncertainty at
the reporting date that have a significant risk of causing a material adjustment to the carrying amounts of
assets and liabilities within the next financial year:
(i) RecoverabilityofExplorationandEvaluationExpenditure
The recoverability of the exploration and evaluation expenditure recognised as a non-current asset
is dependent upon the successful development, or alternatively sale, of the respective tenements
which comprise the assets.
(ii)
RecoverabilityofIntangibleAssets(DevelopmentExpenditure)
The recoverability of capitalised development expenditure recognised as a non-current asset is
dependent upon the successful development, or alternatively sale, of the respective intellectual
property which comprise the assets. Refer to Note 13 for details of how the development
expenditure has been valued.
(iii) Sharebasedpaymenttransactions
The fair value of any options issued as remuneration is measured using the Black-Scholes model.
Measurement inputs include share price on measurement date, exercise price of the instrument,
expected volatility (based on weighted average historic volatility adjusted for changes expected due
to publicly available information (if any)), weighted average expected life of the instruments (based
on historical experience and general option holder behaviour), expected dividends, and the risk-free
interest rate (based on government bonds).
(s)
Intangibles Assets – Intellectual Property Development Expenditure
Such assets are recognised at cost of acquisition. Expenditure during the research phase of a project
is recognised as an expense when incurred. Development costs are capitalised only when technical
feasibility studies identify that the project is expected to deliver future economic benefits and these
benefits can be measured reliably. Development costs have a finite life and are amortised on a
systematic basis based on the future economic benefits over the useful life of the project.
An intangible asset arising from development (or from the development phase of an internal project) is
recognised if, and only if, all the following are demonstrated:
• the technical feasibility of completing the intangible asset so that it will be available for use or sale;
• the intention to complete the intangible asset and use or sell it;
• the ability to use or sell the intangible asset;
• how the intangible asset will generate probable future economic benefits;
•
•
the availability of adequate technical, financial and other resources to complete the development and
to use or sell the intangible asset; and
the ability to measure reliably the expenditure attributed to the intangible asset during its
development.
Capitalised development costs will be amortised over their expected useful life of the intangible asset
once full commercialisation or production commences.
(t) New and Amended Accounting Policies Adopted by the Group
None noted.
(u)
New Accounting Standards for Application in Future Periods
None noted.
(v) Comparative Figures
When required by Accounting Standards, comparative figures have been adjusted to conform to
changes in presentation in the current financial year.
79
2022 LEPIDICO ANNUAL REPORT
Notes to the Financial Statements
for the Year ended 30 June 2022
Note 2: Interests in other entities
(a) Controlled entities
The Group’s principal subsidiaries at 30 June 2022 are set out below. Unless otherwise stated, they have share
capital consisting solely of ordinary shares that are held directly by the group, and the proportion of ownership
interests held equals the voting rights held by the group. The country of incorporation or registration is also their
principal place of business
Country of
Incorporation
Interest as at
30 June
(%)
2022
2021
Principal Activity
Parent Entity:
Lepidico Ltd
Australia
Subsidiaries of Lepidico Ltd:
Lepidico Holdings Pty Ltd
Australia
Li Technology Pty Ltd
Silica Technology Pty Ltd
Bright Minz Pty Ltd
Mica Exploration Pty Ltd
Lepidico (Netherlands)
Coöperatief U.A.
Australia
Australia
Australia
Australia
Netherlands
Lepidico (Netherlands) B.V.
Netherlands
Lepidico (UK) Ltd
Lepidico (Canada) Ltd
Lepidico Holdings (Canada) Inc
Lepidico (Canada) Inc
United
Kingdom
Canada
Canada
Canada
Lepidico (Mauritius) Ltd
Mauritius
Namibia
100
100
100
100
100
100
100
100
0
100
100
100
80
100
100
100
100
100
100
100
100
100
100
100
100
80
Lithium Exploration
and Investment
Holder of L-Max® Technology
Holder of S-Max® Technology
Holder of LOH-Max® Technology
Lithium Exploration
International Holding Company
Global Marketing Company
Management Company
Deregistered
Holding Company
Management Company
Holding Company
Exploration and
Development Company
Namibia
100
100
Dormant
UAE
100
100
Developer of Phase 1
Chemical Plant
Lepidico Chemicals
Namibia (Pty) Ltd
Lepidico Infrastructure
Namibia (Pty) Ltd
Lepidico Chemicals
Manufacturing Ltd
80
2022 LEPIDICO ANNUAL REPORT Notes to the Financial Statements
for the Year ended 30 June 2022
Note 2: Interests in other entities (continued)
(b) Non-controlling interests (NCI)
Set out below is summarised financial information for Lepidico Chemicals Namibia (Pty) Ltd (LCN), the
subsidiary that has a non-controlling interest and is material to the group. The amounts disclosed for the
subsidiary are in Australian dollars (A$) before inter-company eliminations.
Summarised Balance Sheet
Current assets
Current liabilities
2022
$
727,828
(7,124,841)
2021
$
1,085,257
(157,432)
Current net assets/(liabilities)
(6,397,013)
927,825
Non-current assets
Non-current liabilities
20,479,630
(5,876,033)
17,903,304
(8,925,977)
Non-current net assets
14,603,597
8,977,327
Net assets
Accumulated NCI
Summarised statement of comprehensive income
Revenue
8,206,584
9,905,152
6,404,389
6,635,965
2022
$
8,157
2021
$
-
Profit/(Loss) for the period
(1,157,879)
(745,897)
Other comprehensive income
Total comprehensive income
(542,372)
(1,700,251)
2,842,386
2,097,489
Profit/(Loss) allocated to NCI
(231,576)
(149,179)
Summarisedcashflows
Cash flows from operating activities
Cash flows from investing activities
Cash flows from financing activities
2022
$
(608,101)
(2,765,633)
2,507,007
2021
$
(247,560)
(654,186)
1,796,229
Net increase/(decrease) in cash and cash equivalents
(866,727)
894,483
Under the Shareholders’ Agreement Term Sheet, Lepidico Ltd, has the discretion to either finance all
expenditures of LCN and/or arrange for third party financing. LCN is currently funded via an interest bearing
intercompany loan facility between the Company and LCN.
81
2022 LEPIDICO ANNUAL REPORT Notes to the Financial Statements
for the Year ended 30 June 2022
Note 3: Business Combination
(a) Prior Period
On 25 November 2020, the Company acquired 100% of the issued capital in Bright Minz Pty Ltd (Bright
Minz). Bright Minz is the holder of the LOH-Max® process technology which was developed for the
production of high purity lithium hydroxide monohydrate from a lithium sulphate intermediate, without
production of sodium sulphate, thereby reducing capital and operating costs versus conventional
process technologies.
The acquisition of LOH-Max® brings all the process technologies employed by the Phase 1 Project under
the Lepidico umbrella, thereby streamlining the process for future third party licences.
Details of this business combination were included in Note 3 of the Group’s annual financial statements
for the year ended 30 June 2021.
Note 4: Revenue
Technology Licence Fees
Income
Interest
Profit on Sale of Fixed Assets
Government assistance programs
Other
Other Income
Total Revenue
Note 5: Administrative Expenses
Office & general
Professional services
Compliance related
Travel
2022
$
-
-
1,442
8,157
-
2,262
11,861
11,861
2022
$
452,434
682,737
666,536
230,974
2021
$
4,084,027
4,084,027
222
-
53,421
-
53,643
4,137,670
2021
$
273,457
628,844
416,531
-
Total Administrative Expenses
2,032,681
1,318,832
82
2022 LEPIDICO ANNUAL REPORT
Notes to the Financial Statements
for the Year ended 30 June 2022
Note 6: Income Tax Expense
(a)
The components of tax expense comprise:
Current tax
Deferred tax
Losses recouped not previously recognised
Income tax expense/(benefit) reported in statement of
comprehensive income
(b)
The prima facie tax benefit on loss from ordinary activities
before income tax is reconciled to the income tax as follows:
2022
$
-
77,872
-
77,872
2021
$
-
(593,439)
-
(593,439)
Prima facie tax benefit on loss from ordinary activities before
income tax at 30% (2021:30%)
(2,359,040)
(93,264)
Add tax effect of:
- Share based payments
- Foreign expenditure
- Deferred tax balances not recognised
- Foreign tax rate differential
- Adjustments to income tax of previous years
- CGT Adjustments
- Other non-allowable items
Less tax effect of:
- Deferred tax balances not recognised
- Losses recouped not previously recognised
Income tax expense/(benefit) reported in statement of
comprehensive income
(c)
Deferred tax recognised:
Deferred Tax Liabilities:
Karibib assets
Exploration expenditure
Property, plant and equipment
L-Max® Technology
L-Max® Pilot Plant
Other
Deferred Tax Assets:
Carry forward revenue losses
Net deferred tax
(d)
Unrecognised deferred tax assets:
Carry forward revenue losses
Capital raising and other costs
L-Max® Licence
Bright Minz acquisition
Provision and accruals
546,750
-
2,215,209
(51,423)
(120,468)
-
(153,156)
-
-
101,250
48,973
(519,413)
(44,508)
431,909
(482,804)
(35,582)
-
-
77,872
(593,439)
(2,384,718)
(3,211,069)
(4,245)
-
(298,445)
(726,432)
(17,416)
(4,245)
(16,469)
(356,263)
(725,102)
(13,210)
1,046,538
1,115,289
(2,384,718)
(3,211,069)
11,346,995
136,339
21,826
-
32,272
9,472,874
279,785
21,826
2,520
24,397
11,537,432
9,801,402
83
2022 LEPIDICO ANNUAL REPORT
Notes to the Financial Statements
for the Year ended 30 June 2022
Note 6: Income Tax Expense (continued)
(e) Tax consolidation:
Lepidico Ltd and its wholly owned Australian resident subsidiaries formed a tax consolidated group
with effect from 1 July 2014. Lepidico Ltd is the head entity of the tax consolidated group.
The tax benefits of the above Deferred Tax Assets will only be obtained if:
a)
the Company derives future assessable income of a nature and of an amount sufficient to enable
the benefits to be utilised;
b)
the Company continues to comply with the conditions for deductibility imposed by law; and
c) no changes in income tax legislation adversely affect the company in utilising the benefits.
Note 7: Auditor’s Remuneration
Audit services
Note 8: Earnings per Share
2022
$
2021
$
50,354
49,461
The calculation of basic profit or loss per share for each year was based on the profit or loss attributable to
ordinary shareholders and using a weighted average number of ordinary shares outstanding during the year.
The Company’s potential ordinary shares were not considered dilutive as the Company is in a loss position.
Profit/(Loss) attributable to the ordinary equity
holders of the Company
2022
$
2021
$
(0.00127)
0.00006
$
$
Profit/(Loss) from continuing operations
(7,941,340)
282,556
Weighted average number of ordinary shares
6,247,028,694
5,218,441,770
Note 9: Cash and Cash Equivalents
No.
No.
2022
$
2021
$
Cash at bank and in hand
8,042,822
14,738,020
The Group’s exposure to interest rate risk and a sensitivity analysis for financial assets and liabilities are
disclosed in Note 25
84
2022 LEPIDICO ANNUAL REPORT Notes to the Financial Statements
for the Year ended 30 June 2022
Note 10: Trade and Other Receivables
Current
Prepaid expenses
R&D tax rebate receivable
Goods and services tax receivable
Total Current Trade and Other Receivables
Non-Current
Cash backed guarantees
Total Non-Current Trade and Other Receivables
Total Trade and Other Receivables
Note 11: Property, Plant and Equipment
2022
$
120,108
1,503,314
580,810
2,204,232
632,379
632,379
2,836,611
Buildings &
Infrastructure
Furniture,
Fittings &
Equipment
Motor
Vehicles
Assets under
Construction
Right of
Use Asset
$
$
$
$
Cost
Balance at 1 July 2020
1,741,511
266,067
215,359
2,392,807
Additions
Disposals
Impact of foreign exchange
-
-
-
92,283
(23,821)
(543)
-
-
-
-
-
-
Balance at 30 June 2021
1,741,511
333,986
215,359
2,392,807
$
-
-
-
-
-
2021
$
66,063
24,519
153,204
243,786
71,489
71,489
315,275
Total
$
4,615,744
92,283
(23,821)
(543)
4,683,663
Additions
Disposals
Impact of foreign exchange
19,586
75,293
3,707
-
6,835,463
6,934,049
(84,048)
(25,536)
(2,392,807)
-
(2,502,391)
-
-
(17,844)
(12,176)
-
-
446,000
415,980
7,281,463
9,531,301
Balance at 30 June 2022
1,761,097
307,387
181,354
Accumulated Depreciation
Balance at 1 July 2020
Depreciation
Disposals
130,510
135,636
-
124,843
76,761
(23,821)
63,954
66,466
-
Impact of foreign exchange
23,684
12,134
11,608
2,392,807
-
-
-
Balance at 30 June 2021
289,830
189,917
142,028
2,392,807
-
-
-
-
-
2,712,114
278,863
(23,821)
47,426
3,014,582
Depreciation
Disposals
147,503
41,869
23,301
-
198,540
411,213
-
(43,688)
(25,537)
(2,392,807)
-
(2,462,032)
Impact of foreign exchange
(20,400)
(6,606)
(6,626)
Balance at 30 June 2022
416,933
181,492
133,166
Net Book Value
At 30 June 2021
1,451,681
144,069
73,331
At 30 June 2022
1,344,164
125,895
48,188
-
-
-
-
10,393
(23,239)
208,933
940,524
-
1,669,081
7,072,530
8,590,777
85
2022 LEPIDICO ANNUAL REPORT Notes to the Financial Statements
for the Year ended 30 June 2022
Note 12: Exploration and Evaluation Expenditure
2022
$
2021
$
Exploration expenditure
46,763,770
43,986,682
The recoverability of the carrying amount of exploration assets is dependent on the successful development
and commercial exploitation or sale of the respective mining permits. Amortisation of the costs carried
forward for the development phase is not being charged pending the commencement of production.The
impairment of exploration expenditure represents projects that the company is no longer pursuing.
2022
$
2021
$
Reconciliation of movements during the year:
Balance at the beginning of year
43,986,682
42,725,634
Exploration and evaluation costs capitalised
Exploration and evaluation costs written off
Impact of foreign exchange
3,359,636
(452,275)
(130,273)
1,054,639
(408)
206,817
Balance at the end of the year
46,763,770
43,986,682
Note 13: Intangible assets
L-Max® Technology
S-Max® Technology
LOH-Max® Technology
2022
$
2021
$
28,413,680
24,055,934
149,017
502,664
149,017
426,105
Intangible assets
29,065,361
24,631,056
The recoverability of the carrying amount of the L-Max®, S-Max® and LOH-Max® Technologies is dependent
of the successful development and commercial exploitation or sale of the asset.
Capitalised development costs will be amortised over their expected useful life of the intangible assets once
full commercialisation of production commences.
Reconciliation of movements during the year:
Balance at the beginning of year
Development costs capitalised
Technology acquired
Research and Development Tax Credit received/receivable
(1,503,314)
Impact of foreign exchange
-
Balance at the end of the year
29,065,361
24,631,056
86
2022
$
2021
$
24,631,056
23,870,434
5,937,619
-
774,687
10,000
(24,519)
454
2022 LEPIDICO ANNUAL REPORT Notes to the Financial Statements
for the Year ended 30 June 2022
Note 14: Trade and Other Payables
Current
Trade payables
Sundry payables and accrued expenses
2022
$
1,352,457
633,713
2021
$
503,334
464,350
Total Current Trade and Other Payables
1,986,170
967,684
Note 15: Provisions
Current
Employee Provisions
2022
$
2021
$
178,697
140,105
Total Current Provisions
178,697
140,105
Non-Current
Make good provision (KIZAD)
Total Non-Current Provisions
670,970
670,970
-
-
Total Provisions
849,667
140,105
Reconciliation of movements in Employee Provisions
during the period:
Balance at the beginning of period
Additional provisions
Provisions used
Impact of foreign exchange
2022
$
2021
$
140,105
125,217
(90,878)
4,253
107,652
91,198
(61,244)
2,499
Balance at the end of the period
178,697
140,105
Reconciliation of movements in Make Good Provision
during the period:
Balance at the beginning of period
Additional provisions
Unwinding of discount
Impact of foreign exchange
Balance at the end of the period
2022
$
2021
$
-
596,030
34,268
40,672
670,970
-
-
-
-
-
87
2022 LEPIDICO ANNUAL REPORT Notes to the Financial Statements
for the Year ended 30 June 2022
Note 16: Lease Liability
Current
Lease Liability
Total Current Lease Liability
Non-Current
Lease Liability
Total Non-Current Lease Liability
Total Lease Liability
2022
$
279,751
279,751
6,744,318
6,744,318
7,024,069
2021
$
-
-
-
-
-
During the period the Group entered into the Musataha lease agreement with Abu Dhabi Ports securing the
57,000m2 site for the Phase 1 chemical plant for an initial term of 25 years.
Reconciliation of movements during the year:
Balance at the beginning of period
Additions
Interest expense
Impact of foreign exchange
Balance at the end of the year
Note 17: Deferred Revenue
2022
$
2021
$
-
6,239,562
358,735
425,772
7,024,069
-
-
-
-
-
Deferred revenue of $6,613,159 (US$4,558,272) represents a payment from Jiangxi Jinhui Lithium Co Ltd
(Jinhui), a private Chinese corporation under an offtake agreement dated 6 November 2017 and subsequently
amended on 13 February 2018 (the Jinhui Lithium Offtake Agreement) which provides for the sale of material
located in the stockpile at the Karibib project in Namibia.
The deferred revenue is classified as deferred revenue as the payment is no longer refundable and shall
continue to amortise against any future shipments of the stockpile material.
The term of the Jinhui Lithium Offtake Agreement began on 16 November 2017 and ends on the earlier of:-
(i)
(ii)
60 months following such date; and
the date that is 15 business days after all concentrate produced from the stockpiled material has been
loaded on to the vessel nominated by Jinhui; and has been paid for by Jinhui.
As the Jinhui Offtake Agreement expires on 16 Novemebr 2022, Defered Revenue is presented as a current
liability. Refer Note 25(b).
Reconciliation of movements during the year:
Balance at the beginning of the year
Impact of foreign exchange
Balance at the end of the year
2022
$
2021
$
6,071,577
541,582
6,629,144
(557,567)
6,613,159
6,071,577
88
2022 LEPIDICO ANNUAL REPORT
Notes to the Financial Statements
for the Year ended 30 June 2022
Note 18: Contributed Equity
a) Share capital
2022
2021
Number
$
Number
$
Fully paid ordinary shares
6,507,171,533
108,456,563
6,152,082,446
100,447,338
Share Issue Costs
(5,800,837)
102,655,726
(5,791,060)
94,656,278
Ordinary shares have the right to receive dividends and, in the event of winding-up the Company, to participate in the
proceeds from the sale of all surplus assets in proportion to the number of and amounts paid up on shares held.
Ordinary shares entitle their holder to one vote, either in person or by proxy, at a meeting of the Company.
Movements in ordinary share capital
Description
Date
Number of
shares
Issue Price
$
Opening Balance
30 June 2021
6,152,082,446
Exercise of listed LPDOC options
Exercise of listed LPDOB options
Exercise of listed LPDOD options
Exercise of unlisted options
Various
Various
Various
Various
Exercise of unlisted options
13 April 2022
259,980,404
1,624,899
3,483,784
65,000,000
25,000,000
Fair value of options exercised
Various
-
0.02
0.05
0.026
0.026
0.016
-
94,656,278
5,199,608
81,245
90,578
1,690,000
400,000
547,793
(9,776)
6,507,171,533
102,655,726
Less: Share Issue Costs
Closing Balance
b) Share options
As at reporting date, Lepidico has the following options on issue:
Number
Exercise Price
Grant
Expiry
73,000,000
75,000,000
5,967,000
478,617,523
67,500,000
18,090,000
67,500,000
785,674,523
$0.025
$0.016
$0.350
$0.026
$0.012
$0.020
$0.072
21 November 2019
21 November 2022
8 December 2020
8 December 2022
11 July 2019
26 February 2023
18 June 2021
18 June 2023
19 November 2020
19 November 2023
11 July 2019
14 January 2024
18 November 2021
18 November 2024
89
2022 LEPIDICO ANNUAL REPORT Notes to the Financial Statements
for the Year ended 30 June 2022
Note 18: Contributed Equity (continued)
Options carry no dividend or voting rights. Upon exercise, each option is convertible into one ordinary share
to rank pari passu in all respects with the Group’s existing fully paid ordinary shares.
Movements in Options
Balance at 1 July 2020
Granted
Exercised
Expired
Balance at 30 June 2021
Granted
Exercised
Expired
Balance at 30 June 2022
c) Share Based Payments
Weighted Average
Exercise Price
$
0.040
0.023
0.020
0.054
0.029
0.072
0.021
0.049
0.030
Number
914,500,539
649,601,307
(2,144,794)
(270,518,031)
1,291,439,021
67,500,000
(355,089,087)
(218,175,411)
785,674,523
During the year the Company made the following share based payments:
(i) Related Party Options
On 18 November 2021, the Company issued a total of 67,500,000 options to directors, employees and
consultants under the Company’s Share Option Plan and were valued using Black Scholes with the
following assumptions:
Number of options in series
67,500,000
Unlisted Options
Grant date share price
Exercise price
Expected volatility
Option life
Dividend yield
Interest Rate
Value per option
$0.044
$0.072
119%
3 years
0.00%
0.5%
$0.027
d) Warrants
As at reporting date, all warrants associated with the Desert Lion Energy Inc business combination
had expired.
e) Controlled Placement Agreement
The Company has a Controlled Placement Agreement (CPA) with Acuity Capital in place to provide
Lepidico with up to $7.5 million of standby equity capital to fund future product research and
development work, new process technology development and working capital. As collateral for the CPA,
Lepidico issued an initial 230,000,000 ordinary shares at nil consideration to Acuity Capital (Collateral
Shares) but may, at any time, cancel the CPA and buy back the Collateral Shares for no consideration
(subject to shareholder approval).
The facility was extended to 31 January 2024 during the year.
At 30 June 2022 there remains $4.475 million available under the CPA with 96,000,000 Collateral Shares
held by Acuity Capital. If the Collateral Shares are unused on the expiry date, or the facility is otherwise
terminated, the Collateral Shares are required to be returned to the Company.
90
2022 LEPIDICO ANNUAL REPORT
Notes to the Financial Statements
for the Year ended 30 June 2022
Note 19: Reserves
Option Reserve
Warrant Reserve
Foreign Currency Translation Reserve
Total Reserves
2022
$
6,619,847
415,135
1,009,733
8,044,715
a) Option Reserve
The options reserve is used to recognise the fair value of all options on issue but not yet exercised.
Opening Balance
Share based payments for the year
Options acquired during the year
Transfer of value on exercise of options
Closing Balance
2022
$
5,345,140
1,822,500
-
(547,793)
6,619,847
2021
$
5,345,140
415,135
850,669
6,610,944
2021
$
4,915,097
337,500
111,173
(18,630)
5,345,140
b) Warrant Reserve
The warrants reserve is used to recognise the fair value of all warrants contractually recognised but not
yet exercised.
2022
$
2021
$
Closing Balance
415,135
415,135
c) Foreign Currency Translation Reserve
The foreign currency translation reserve records exchange differences arising on translation of foreign
controlled subsidiaries.
Opening Balance
Movement during the year
Closing Balance
Note 20: Contingent Liabilities and Contingent Assets
There are no contingent liabilities as at 30 June 2022.
2022
$
850,669
159,064
1,009,733
2021
$
377,488
473,181
850,669
91
2022 LEPIDICO ANNUAL REPORT
Notes to the Financial Statements
for the Year ended 30 June 2022
Note 21: Segment reporting
Reportable Segments
The Group operates two reportable segments, being mineral exploration and development of its technologies
including L-Max®, LOH-Max® and S-Max®, which reflects the structure used by the Group’s management to
assess the performance of the Group.
Mineral
Exploration
$
(i) Segment performance
Year ended 30 June 2022
Revenue
10,420
Technology
$
-
Corporate &
Unallocated
items
$
Total
$
1,441
11,861
Profit/(Loss) before tax
(724,935)
(1,142,255)
(5,996,278)
(7,863,468)
Year ended 30 June 2021
Revenue
-
4,084,027
53,643
4,137,670
Profit/(Loss) before tax
(408)
3,671,830
(3,982,305)
(310,883)
(ii) Segment assets
As at 30 June 2022
48,566,532
38,201,079
8,531,730
95,299,341
As at 30 June 2021
45,607,272
24,655,575
15,077,267
85,340,114
Geographical Information
Australia
Canada
Africa
UAE
Europe
$
$
$
(i) Segment performance for
the year ended:
30 June 2022
Revenue
1,334
107
10,420
$
-
Total
$
$
-
11,861
Profit/(Loss) before tax
(4,119,291)
(1,071,111)
(927,774)
(874,536)
(870,756)
(7,863,468)
30 June 2021
Revenue
4,137,670
-
-
-
-
4,137,670
Profit/(Loss) before tax
2,173,607
(1,392,796)
(579,445)
(42,294)
(469,955)
(310,883)
ii) Segment assets
As at 30 June 2022
38,386,375
240,306
48,999,256
7,660,452
12,952
95,299,341
As at 30 June 2021
38,361,367
110,814
46,719,272
135,824
12,837
85,340,114
92
2022 LEPIDICO ANNUAL REPORT Notes to the Financial Statements
for the Year ended 30 June 2022
Note 22: Commitments
Operating lease commitments
As at 30 June 2022, the Group does not have any operating leases other than the Right of Use Asset.
Exploration lease commitments
The Group has committed to the following tenement expenditures to maintain them in good standing until they are
farmed out, sold, reduced, relinquished, exemptions from expenditure are applied or are otherwise disposed of.
These commitments, net of farm outs, are not provided for in the financial statements and are:
Not later than one year
After one year but less than five years
Note 23: Cash Flow Information
2022
$
931,718
3,468,744
4,400,462
2022
$
2021
$
324,361
484,450
808,814
2021
$
Reconciliation of Cash Flow from Operations
with Loss after Income Tax
Profit/(Loss) after income tax
(7,941,340)
282,556
Adjustments items not impacting cash flow used in operations:
Depreciation and amortisation
Exploration expenditure written-off
Fair value of options issued
Profit on sale of property, plant and equipment
Finance costs
Accretion expense
Realised FX (Gain)/Loss
Income tax expense/(benefit)
Changes in assets and liabilities:
(Increase)/decrease in trade and other receivables
Increase/(decrease) in trade and other payables
Increase/(decrease) in provisions
411,213
452,275
1,822,500
(9,562)
393,003
-
(37,742)
77,872
(980,588)
291,230
38,592
278,862
408
337,500
-
-
434,122
63,248
(593,439)
27,284
173,616
32,453
Cash flow from/(used) in operations
(5,482,547)
1,036,610
93
2022 LEPIDICO ANNUAL REPORT Notes to the Financial Statements
for the Year ended 30 June 2022
Note 24: Related Party Transactions
Key Management Personnel Remuneration
Cash salaries, fees and other short-term benefits
Post employment benefits
Share based payments
2022
$
2021
$
1,715,641
1,845,314
39,818
1,822,500
42,074
337,500
3,577,959
2,224,888
Detailed remuneration disclosures are provided in the remuneration report contained in the Directors' Report.
Payments to director-related parties
Payments to director-related entities(1)
2022
$
2021
$
2,609,905
126,164
(1) Payments were made to Strategic Metallurgy Pty Ltd, a company of which Mr Gary Johnson is a director and beneficial
shareholder. The payments were in relation to the development of L-Max® technology on an arm’s length basis. As at 30
June 2022 invoices totalling $141,777 are payable (2021: $Nil).
Note 25: Financial Risk Management
The Group has exposure to the following risks:
(a) Credit Risk
(b) Liquidity Risk
(c) Market Risk
This note presents information on the Group’s exposure to each of the above risks, their objectives, policies
and processes for measuring risk, and management of capital.
The Board of Directors has overall responsibility for the establishment and oversight of the risk management
framework. Management is responsible for establishing procedures which provide assurance that major
business risks are identified, consistently assessed and appropriately mitigated.
The Group’s Audit & Risk Management Committee oversees how management monitors compliance with
the Group’s risk management policies and procedures and reviews the adequacy of the risk management
framework in relation to the risks faced by the Group.
(a) Credit Risk
Credit risk refers to the risk that a counter-party will default on its contractual obligations resulting in
financial loss to the consolidated entity. The consolidated entity has adopted the policy of only dealing with
creditworthy counter-parties and obtaining sufficient collateral or other security where appropriate, as a
means of mitigating the risk of financial loss from defaults. The consolidated entity measures credit risk on
a fair value basis. The consolidated entity does not have any significant credit risk exposure to any single
counter-party.
The Group’s cash and cash equivalents are held with HSBC Bank and First National Bank Namibia, and
management consider the Group’s exposure to credit risk is low.
The carrying amount of the Group’s financial assets represents the maximum credit exposure. The Group’s
maximum exposure to credit risk at the reporting date was:
Financial assets
Cash and cash equivalents
Trade and other receivables
Total financial assets
94
Note
9
10
2022
$
2021
$
8,042,822
2,836,611
14,738,020
315,275
10,879,433
15,053,295
2022 LEPIDICO ANNUAL REPORT
Notes to the Financial Statements
for the Year ended 30 June 2022
Note 25: Financial Risk Management (continued)
(b) Liquidity Risk
Liquidity risk is the risk that the Group will not be able to meet its financial obligations as they fall due.
The Group’s approach to managing liquidity is to ensure, as far as possible, that it will always have
sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without
incurring unacceptable losses or risking damage to the Group’s reputation.
The Group manages liquidity risk by maintaining adequate cash reserves from funds raised in the market
and by continuously monitoring forecast and actual cash flows. Typically, the Group ensures it has
sufficient cash on demand to meet expected expenditures, including servicing financial obligations; this
excludes the potential impact of extreme circumstances that cannot be reasonably predicted, such as
the COVID-19 pandemic.
The Company will need to raise additional capital to fund the development of the integrated Phase 1
L-Max® Plant. The decision on how and when the Company will raise future capital will largely depend
on the market conditions existing at that time.
The following table analyses the Group’s financial liabilities into relevant maturity periods based on the
remaining period at the reporting date to the contractual maturity date. The amounts disclosed in the
table are the contractual undiscounted cash flows and hence will not necessarily reconcile with the
amounts disclosed in the statement of financial position.
30 June 2022
Trade & other payables
Lease Liabilities
Deferred Revenue
Carrying
amount
Contractual
cash
outflows
Within 1
year
1-2 years
2-5 years
$
$
$
1,986,170
1,986,170
1,986,170
$
-
$
-
7,024,069
17,394,023
279,751
559,502
1,678,506
6,613,159
-
-
-
-
Note
14
16
17
Total
15,623,398
19,380,193
2,265,921
559,502
1,678,506
30 June 2021
Trade & other payables
Deferred Revenue
Carrying
amount
Contractual
cash
outflows
Within 1
year
$
$
$
967,684
967,684
967,684
6,071,577
-
-
Note
14
17
Total
7,039,261
967,684
967,684
1-2 years
2-5 years
$
-
-
-
$
-
-
-
Assetspledgedassecurity
The Company has provided a cash deposit of AED1,416,730 ($559,874) as a security deposit under the
Musataha Agreement.
95
2022 LEPIDICO ANNUAL REPORT
Notes to the Financial Statements
for the Year ended 30 June 2022
Note 25: Financial Risk Management (continued)
(c)
Market Risk
Market risk is the risk that changes in market prices, such as foreign exchange rates, interest rates and
equity prices will affect the Group’s income or the value of its holdings of financial instruments. The
objective of market risk management is to manage and control market risk exposure within acceptable
parameters, while optimising the return.
Interest Rate Risk
(i)
As at and during the year ended on reporting date the Group had no significant interest-bearing assets
or liabilities other than liquid funds on deposit. As such, the Group’s income and operating cash flows
(other than interest income from funds on deposit) are substantially independent of changes in market
interest rates. The Group’s exposure to interest rate risk and the effective weighted average interest rate
for each class of financial assets and liabilities is set out below:
2022
$
%
%
2021
$
Financial assets
Cash assets Floating rate
0.02%
8,042,822
0.01% 14,738,020
The Group adopts a policy of ensuring that as far as possible it maintains excess cash and cash equivalents
in higher interest-bearing cash management account.
The Group has performed a sensitivity analysis relating to its exposure to interest rate risk over the reporting
period. The sensitivity analysis demonstrates the effect on the current year’s results and equity values
reported at the end of the reporting period which would result from a 1% change in interest rates.
Change in Loss
Increase by 1%
Decrease by 1%
Change in Equity
Increase by 1%
Decrease by 1%
2022
$
102,159
(1,442)
102,159
(1,442)
2021
$
45,970
(222)
45,970
(222)
(ii) Currency Risk
The Group operates internationally and is exposed to foreign exchange risk on its financial assets and
liabilities. Fluctuations in exchange rates may have a significant effect on the cash flows of the Company.
Future changes in exchange rates could materially affect the Company’s results in either a positive or
negative direction. The Group’s currency risk arises primarily with respect to the Namibian dollar (NAD)
and South African Rand (ZAR), which are equivalent, Canadian dollars (CAD) and United States dollars
(USD). In addition, the Company has transactions in British pounds (GBP) and Euro (EUR). The Group
has not entered into any derivative financial instruments to hedge such transactions. The Group reviews
its foreign currency exposure, including commitments on an ongoing basis.
96
2022 LEPIDICO ANNUAL REPORT
Notes to the Financial Statements
for the Year ended 30 June 2022
Note 25: Financial Risk Management (continued)
(c)
Market Risk (continued)
(ii) Currency Risk
The Group’s exposure to currency risk arising on financial assets and financial liabilities denominated in
various currencies was :
NAD
$
CAD
$
AED
إ.د
USD
$
GBP
EUR
4,799,355
185,110
13,431
7,436
20,867
3,376,371
24,712
1,416,730
5,550
-
8,543
Trade and other payables
(5,731,570)
(16,180)
-
(4,084)
(2,992)
Lease liabilities
Deferred Revenue
-
-
-
-
(17,780,400)
-
-
(4,558,272)
-
-
-
-
-
Net currency exposure
2,444,156
193,642
(16,350,239)
(4,549,370)
17,875
8,543
NAD
$
CAD
$
AED
إ.د
USD
$
GBP
EUR
11,135,440
75,412
709,225
21,798
Trade and other payables
(2,553,288)
(210,977)
Lease liabilities
Deferred Revenue
-
-
-
-
Net currency exposure
9,291,377
(113,767)
The following significant exchange rates applied during the year:
-
-
-
-
-
-
18,915
54,448
-
-
-
(4,558,272)
-
8,113
(34,507)
-
-
-
-
-
(4,539,357)
19,941
8,113
30 June 2022
Cash and cash
equivalents
Trade and other
receivables
30 June 2021
Cash and cash
equivalents
Trade and other
receivables
£
£
€
-
€
-
1 USD:AUD
1 NAD:AUD
1 CAD:AUD
1 AED:AUD
Average rate
Reporting date spot rate
2022
1.378635
0.090585
1.088845
0.387370
2021
1.339942
0.087141
1.044372
-
2022
1.450804
0.089023
1.125245
0.394925
2021
1.331991
0.093103
1.074449
-
97
2022 LEPIDICO ANNUAL REPORT
Notes to the Financial Statements
for the Year ended 30 June 2022
Note 25: Financial Risk Management (continued)
(c)
Market Risk (continued)
(ii) Currency Risk (continued)
SensitivityAnalysis
The following table details the Group’s sensitivity arising in respect of translation of its financial assets
and financial liabilities to a 10% movement (2021: 10%) in the Australian dollar against the currencies
where it has significant currency risk at the reporting date, with all other variables held constant.
NAD
If the NAD had strengthened against the AUD
If the NAD had weakened against the AUD
CAD
If the CAD had strengthened against the AUD
If the CAD had weakened against the AUD
USD
If the USD had strengthened against the AUD
If the USD had weakened against the AUD
AED
If the AED had strengthened against the AUD
If the AED had weakened against the AUD
2022
A$
21,759
(21,759)
21,790
(21,790)
(660,024)
660,024
(645,712)
645,712
2021
A$
110,277
(110,277)
(12,224)
12,224
(604,638)
604,638
-
-
(iii) Commodity Price Risk
The Group is operating primarily in the exploration and evaluation phase and accordingly the Group’s
financial assets and liabilities are not yet subject to commodity price risk.
(iv) Capital Management
The Group’s objectives when managing capital are to safeguard the Group’s ability to continue as
a going concern and to maintain a strong capital base sufficient to maintain future exploration and
development of its projects. In order to maintain or adjust the capital structure, the Group may return
capital to shareholders, issue new shares or sell assets.
There were no changes in the Group’s approach to capital management during the year. Risk
management policies and procedures are established with regular monitoring and reporting.
Neither the Company nor any of its subsidiaries are subject to externally imposed capital requirements.
98
2022 LEPIDICO ANNUAL REPORT
Notes to the Financial Statements
for the Year ended 30 June 2022
Note 26: Parent Entity Financial Information
The following information relates to the legal parent only.
(a) Summary of Financial Information
Assets
Current assets
Non current assets
Total assets
Liabilities
Current liabilities
Total liabilities
Shareholders’ Equity
Issued capital
Reserves
Accumulated Losses
Total Shareholders’ Equity
Result of the parent entity
Loss for the year
Other comprehensive loss
Total comprehensive loss for the year
2022
$
2021
$
7,765,120
69,991,938
77,757,058
13,736,055
57,973,666
71,709,721
1,442,262
1,442,262
461,223
461,223
135,097,760
127,098,312
7,723,092
6,523,933
(66,506,056)
(62,373,746)
76,314,796
71,248,499
(4,132,308)
(4,129,640)
(75,555)
641,098
(4,207,863)
(3,488,542)
(b) Contractual commitments for the acquisition of property, plant and equipment
At 30 June 2022 the parent entity has no contractual commitments for the acquisition of property, plant
or equipment.
(c) Guarantees and contingent liabilities
At 30 June 2022 the parent entity has no guarantees or contingent liabilities other than as disclosed in
Note 20.
99
2022 LEPIDICO ANNUAL REPORT
Directors’ Declaration
In the opinion of the Directors of Lepidico Ltd (the Company):
1.
The financial statements and notes and the remuneration disclosures that are contained in the Directors’
Report, are in accordance with the Corporations Act 2001, including:
a.
b.
complying with Australian Accounting Standards and the Corporations Regulations 2001; and
giving a true and fair view of the consolidated entity’s financial position as at 30 June 2022 and of
its performance for the year ended on that date.
2.
3.
4.
There are reasonable grounds to believe that the company will be able to pay its debts as and when they
become due and payable.
The Directors have been given the declarations required by Section 295A of the Corporations Act 2001
from the chief executive officer and chief financial officer for the financial year ended 30 June 2022.
Note 1 confirms that the financial statements also comply with the International Financial Reporting
Standards as issued by the International Accounting Standards Board.
This declaration is made in accordance with a resolution of the Board of Directors.
Joe Walsh
Managing Director
Dated this 22nd day of September 2022
100
2022 LEPIDICO ANNUAL REPORT
INDEPENDENT AUDITOR’S REPORT
TO THE MEMBERS OF LEPIDICO LTD
Report on the Audit of the Financial Report
Opinion
We have audited the financial report of Lepidico Limited (the Company) and its subsidiaries (the “Group”),
which comprises the consolidated statement of financial position as at 30 June 2022, the consolidated
statement of comprehensive income, the consolidated statement of changes in equity and the consolidated
cash flow statement for the year then ended, and notes to the financial statements, including a summary of
significant accounting policies, and the directors’ declaration.
In our opinion, the accompanying financial report of the Group is in accordance with the Corporations Act
2001, including:
i.
giving a true and fair view of the Group’s financial position as at 30 June 2022 and of its financial
performance for the year then ended; 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 believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
opinion.
Independence
We are independent of the Group in accordance with the auditor independence requirements of 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 (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.
Key Audit Matters
We have determined the matters described below to be the key audit matters to be communicated in
our report.
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 year. 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.
Moore Australia Audit (WA) – ABN 16 874 357 907.
An independent member of Moore Global Network Limited - members in principal cities throughout the world.
Liability limited by a scheme approved under Professional Standards Legislation.
101
2022 LEPIDICO ANNUAL REPORT
INDEPENDENT AUDITOR’S REPORT
TO THE MEMBERS OF LEPIDICO LTD
Key Audit Matters (continued)
Carrying value of Exploration & Evaluation Expenditure and Intangible Assets
Refer to Notes 1(h) and (s), Notes 12 Exploration & Evaluation Expenditure & 13 Intangible Assets
As at 30 June 2022 the Group had capitalised exploration and
evaluation expenditure of $46,763,770 and intangible assets
with a carrying value of $29,065,361.
The ability to recognise and to continue to defer exploration-
evaluation assets under AASB 6 is impacted by the Group’s
ability, and intention, to continue to explore and evaluate
the tenements or its ability to realise this value through
development or sale.
The intangible asset includes the Group’s investment in the
L-Max® Technology, S-Max® Technology and LOH-Max®
Technology, including the cost of acquisition of the technology,
subsequent development costs and patent fees capitalised. As
part of their annual impairment review, management prepared
an analysis of the recoverable amount of the technology
which was, in part, based on a “fair value less costs to sell”
analysis. Note that given the early stages of development
of the technology, there are inherent risks in relying on
forecast cash flows as a reliable estimate of value-in-use.
Notwithstanding this, they have also considered the results of
the vertically integrated Phase 1 Project Definitive Feasibility
Study incorporating the Karibib assets, which was completed
in May 2020, in their impairment review of the exploration and
evaluation and intangible assets.
The carrying values of the capitalised exploration and
evaluation and technology assets were key audit matters given
the significance of the technology and exploration activities to
the Group’s balance sheet, and the judgement involved in the
assessment of their values.
Our procedures included, amongst others the following:
• Assessing the methodologies used by management to
estimate recoverable amounts of the exploration and
evaluation and technology assets, including challenging
the methodologies used, testing the integrity of the
information provided, and assessing the appropriateness
of the key assumptions adopted based on our knowledge
of the technology and industry.
• Reviewing minutes of Board meetings, ASX
announcements, the latest professional technological and
other reports for evidence of any impairment indicators
or material adverse changes in relation to the technology
asset since completion of the Pre-Feasibility Report and
independent valuation report (included in the target’s
statement document) announced in 2017. There were no
such indicators during the year.
• Testing expenditures and other additions to the technology
and exploration-evaluation assets during the year on a
sample basis against supporting documentation such as
supplier invoices and cost agreements and ensuring such
expenditures and additions are appropriately recorded in
accordance with applicable accounting standards.
• Reviewing the Group’s rights to tenure to its areas of
interest and commitment to continue exploration and
evaluation activities in these interests and ensuring
capitalised expenditures relating to areas of interest which
are being discontinued or no longer being budgeted for
are appropriately impaired.
• Review of the latest updated JORC code (2012) compliant
mineral resource estimates, as completed by external
Consultants, in respect of ore reserves at Karibib,
Namibia.
• Review of the vertically integrated Phase 1 Project
Definitive Feasibility Study completed in May 2020 and
any subsequent updates, which is based on a commercial
scale L-Max Plant, comprising an integrated mine,
concentrator and chemical conversion plant development
• Compared the Group’s market capitalisation as at 30 June
2022 ($170 million) to its net asset position ($76.4 million),
noting that the market capitalisation at balance date
significantly exceeded net assets. Market capitalisation
below net assets is an indicator of possible impairment,
thereby requiring further consideration.
• Assessing the appropriateness of the relevant disclosures
in the financial statements.
102
2022 LEPIDICO ANNUAL REPORT
INDEPENDENT AUDITOR’S REPORT
TO THE MEMBERS OF LEPIDICO LTD
Key Audit Matters (continued)
Related Party Transactions & Share Based Payments to Key Management Personnel
Refer to Remuneration Report, Note 18 b) Share Based Payments, Note 24 Related Party Transactions
During the year ended 30 June 2022, the Group
transacted with Key Management Personnel and their
related entities including:
• Awarded share-based payments amounting to
$1,822,500 in the form of share options, to Key
Management Personnel
• Paid $2,609,905 in development and consulting costs
related to the L-Max Technology
As these transactions are made with related parties,
there are additional inherent risks associated with these
transactions, including the potential for these transactions
to be made on terms and conditions more favourable than
if they had been with an independent third party.
The value of the share-based payments is a key audit
matter due to it being a key material transaction with
members of key management personnel, the valuation
of which involves significant judgement and accounting
estimation.
Our procedures included, amongst others the following:
• Enquiring and obtaining confirmations from Key Management
Personnel regarding related party transactions occurring during
the period.
• Reviewing minutes of meetings, ASX announcements and
agreements, and considered other transactions undertaken
during the financial year.
• Reviewing payments, receipts and general journals throughout
the year, and examining transactions with known related
parties, or those that appear large or unusual for the Group.
• Evaluating, based on supporting documentation, whether
related party transactions were on an arms-length basis.
• Assessing the valuation methodology used by management
to estimate fair value of share options issued, including
testing the integrity of the information provided, assessing
the appropriateness of the key assumptions input into the
valuation model and recalculating the valuation using the Black
Scholes Model.
• Assessing whether the share-based payments have been
appropriately classified and accounted for in the financial
statements.
• Assessing the appropriateness of the relevant
disclosures in the financial statements. the
financial statements.
Other Information
The directors are responsible for the other information. The other information comprises the information included in the Group’s
annual report for the year ended 30 June 2022 but does not include the financial report and our auditor’s report thereon.
Our opinion on the financial report does not cover the other information and accordingly we do not express any form of
assurance conclusion thereon.
In connection with our audit of the financial report, our responsibility is to read the other information and, in doing so, consider
whether the other information is materially inconsistent with the financial report or our knowledge obtained in the audit or
otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are
required to report that fact. We have nothing to report in this regard.
Responsibilities of the Directors for the Financial Report
The directors of the Company are responsible for the preparation of the financial report that gives a true and fair view in
accordance with Australian Accounting Standards and the Corporations Act 2001 and for such internal control as the directors
determine is necessary to enable the preparation of the financial report that gives a true and fair view and is free from material
misstatement, whether due to fraud or error.
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
103
2022 LEPIDICO ANNUAL REPORT
INDEPENDENT AUDITOR’S REPORT
TO THE MEMBERS OF LEPIDICO LTD
Auditor’s Responsibilities for the Audit of the Financial Report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free
from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our
opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in
accordance with the Australian Auditing Standards will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate,
they could reasonably be expected to influence the economic decisions of users taken on the basis of this
financial report.
A further description of our responsibilities for the audit of the financial report is located on the Auditing and
Assurance Standards Board website at: https://www.auasb.gov.au/admin/file/content102/c3/ar2_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 as included in the directors’ report for the year ended
30 June 2022.
In our opinion, the Remuneration Report of Lepidico Limited, for the year ended 30 June 2022 complies with
section 300A of the Corporations Act 2001.
Responsibilities
The directors of the Company are responsible for the preparation and presentation of the Remuneration
Report in accordance with section 300A of the Corporations Act 2001. Our responsibility is to express an
opinion on the Remuneration Report, based on our audit conducted in accordance with Australian Auditing
Standards.
Neil Pace
PARTNER
MOORE AUSTRALIA AUDIT (WA)
CHARTERED ACCOUNTANTS
Signed at Perth this 22nd day of September 2022.
104
2022 LEPIDICO ANNUAL REPORT
Supplementary (ASX) Information
The Information set out below was applicable as at 30 September 2022.
FULLY PAID ORDINARY SHARES (ASX:LPD)
Top 20 Holders of Fully Paid Ordinary Shares
Shareholder
Citicorp Nominees Pty Limited
Strategic Metallurgy Holdings Pty Ltd
HSBC Custody Nominees (Australia) Limited
BNP Paribas Noms Pty Ltd
BNP Paribas Nominees Pty Ltd ACF Clearstream
Perth Capital Pty Ltd
Acuity Capital Investment Management Pty Ltd
Mr Johannes Hendrik Thorburn
Strategic Metallurgy Pty Ltd
BNP Paribas Nominees Pty Ltd
Clickable Publishing Pty Ltd
Superhero Securities Limited
1
2
3
4
5
6
7
8
9
10
11
12
13 Mr Ivars Vadzis
14
T&G Corporation Pty Ltd
15 Mr Anthony Charles Kenworthy
16
Rennie Jackson SMSF Pty Limited
17 Ms Kelley Marie Attias
18
Netwealth Investments Limited
19 Mr Gavin Sidney Becker & Mrs Wendy Mary Becker
20 Mr Bill Georgaklis & Mrs Georgia Georgaklis
Number
316,923,605
261,271,201
259,529,488
230,778,042
189,820,732
120,000,000
72,900,000
56,788,306
50,000,134
44,081,773
41,471,634
37,507,000
36,586,319
35,577,700
32,028,572
32,000,000
30,280,764
30,253,982
30,000,000
27,018,389
%
4.87%
4.02%
3.99%
3.55%
2.92%
1.84%
1.12%
0.87%
0.77%
0.68%
0.64%
0.58%
0.56%
0.55%
0.49%
0.49%
0.47%
0.46%
0.46%
0.42%
Total
1,934,817,641
29.73%
Substantial Shareholding
The following shareholders held a substantial interest, being 5.0% or greater, in the issued capital of the Company:
Shareholder
Strategic Metallurgy Holding Pty Ltd and Gary Donald Johnson
No.
370,618,485*
%
6.02%
*As per Notice of Change of Interests of Substantial Holder dated 23 June 2021
Distribution of Shares
The distribution of members and their shareholding was as follows:
Number Held
1 - 1,000
1,001 - 5,000
5,001 - 10,000
10,001 - 100,000
Over 100,000
Total Number of Shareholders
Holders
957
286
381
7,693
5,650
14,967
105
2022 LEPIDICO ANNUAL REPORT
LISTED OPTIONS EXPIRING 18 JUNE 2023 AT $0.026 (ASX : LPDOD)
Top 20 Holders of Listed Options
Shareholder
Mrs Lynette Irene Brooks
Merrill Lynch (Australia) Nominees Pty Limited
Rookharp Capital Pty Limited
Christopherson Super Fund Pty Ltd
Mr Kin Wing Chan & Mrs Wai Shan Yap
Mr Graham Woodward & Mrs Sheryl Woodward
BNP Paribas Noms Pty Ltd
Mr Daniel Aaron Hylton Tuckett
Mr Antony Edward Anderson
1
2
3
4
5
6
7
8
9
10
Perth Capital Pty Ltd
11 Mrs Emilia Mawer
12 Mr Patrick Joseph Naughton
13 G B Duffy & Associates Pty Ltd
14 Glenelg Farm Pty Ltd
15 Mr Mitchell James Gill
16 Mrs Bich Anh Hua
17 Mr Darren Allen Le Gassick
18 Mr Anthony Charles Kenworthy
19
Castlegarde Pty Ltd
20 Miss Renee Sureyya Dumarchand
Number
32,000,000
15,372,921
12,692,310
12,371,898
10,327,466
9,000,000
8,739,903
8,563,265
8,500,000
7,000,000
6,000,000
5,600,000
5,500,000
5,361,804
5,000,000
5,000,000
4,356,000
4,200,000
4,000,001
4,000,000
%
6.69%
3.21%
2.65%
2.59%
2.16%
1.88%
1.83%
1.79%
1.78%
1.46%
1.25%
1.17%
1.15%
1.12%
1.04%
1.04%
0.91%
0.88%
0.84%
0.84%
Total
177,245,568
37.03%
Distribution of Listed Options
The distribution of members and their option holding was as follows:
Number Held
1 - 1,000
1,001 - 5,000
5,001 - 10,000
10,001 - 100,000
Over 100,000
Total Number of Option Holders
Holders
60
288
154
477
490
1,469
106
2022 LEPIDICO ANNUAL REPORT UNLISTED OPTIONS
Unlisted Option holdings as at 30 September 2022
The company has 307,057,000 unlisted options with varying expiry and exercise price on issue.
73,000,000 options expiring 21 November 2022 with an exercise price of 2.5c (“A’), which were issued to the
Company’s Directors and under the Company Employee Share Plan.
75,000,000 options expiring 8 December 2022 with an exercise price of 1.6c (“B”), which were issued to Cornish
Lithium Ltd.
5,967,000 options expiring 26 February 2023 with an exercise price of 35.0c (“C”), which were issued in
accordance with the Plan of Arrangement for the acquisition of Desert Lion Energy Inc.
67,500,00 options expiring 19 November 2023 with an exercise price of 1.2c (“D”), which were issued to the
Company’s Directors and under the Company Employee Share Plan.
18,090,000 options expiring 14 January 2024 with an exercise price of 2.0c (“E”), which were issued in
accordance with the Plan of Arrangement for the acquisition of Desert Lion
Energy Inc.
67,500,000 options expiring 18 November 2024 with an exercise price of 7.2c (“F”), which were issued to the
Company’s Directors and under the Company Employee Share Plan
1-1,000
1,001 – 5,000
5,001 – 10,000
10,001 – 100,000
101,000 and above
Total number of holders
A
-
-
-
-
9
9
B
-
-
-
-
1
1
C
-
-
-
2
6
8
D
-
-
-
-
7
7
E
-
-
-
-
9
9
F
-
-
-
-
7
7
VOTING RIGHTS
Lepidico Ltd ordinary shares carry voting rights of one vote per share. There are no voting rights attaching to any
other class of security.
UNMARKETABLE PARCELS
Minimum $500.00 parcel at $0.022 per share
Minimum Parcel Size
22,727
Holders
3,850
Shares
41,115,758
RESTRICTED AND ESCROWED SECURITIES
There are currently no restricted or escrowed securities.
ON-MARKET BUY-BACK
There is no current on-market buy-back.
TENEMENT INFORMATION
The Company currently holds interests in tenements as set out below.
NAMIBIAN OPERATIONS, Karibib Project
Tenement ID
Registered Holder Lepidico Interest
Expiry Date
ML 204
Lepidico Chemicals Namibia (Pty) Ltd
EPL 5439
Lepidico Chemicals Namibia (Pty) Ltd
80%
80%
18/06/2028
Area
69 km²
27/10/2021
225 km²
107
2022 LEPIDICO ANNUAL REPORT
108
2022 LEPIDICO ANNUAL REPORT
Corporate Directory
Directors
Gary Johnson (Non-Executive Chair)
Julian (Joe) Walsh (Managing Director)
Mark Rodda (Non-Executive Director)
Cynthia Thomas (Non-Executive Director)
Joint Company Secretaries
Alex Neuling
Shontel Norgate
Registered Office
23 Belmont Avenue
Belmont, WA, Australia, 6104
Telephone: (08) 9363 7800
Facsimile: (08) 9363 7801
Email:
info@lepidico.com
Principal Place of Business
23 Belmont Avenue
Belmont, WA, Australia, 6104
PO Box 330 Belmont WA 6984
Website: www.lepidico.com
Country of Incorporation
Australia
Auditors
Moore Australia Audit (WA)
Level 15, Exchange Tower
2 The Esplanade
PERTH WA 6000
Telephone: (08) 9225 5355
Facsimile: (08) 9225 6181
Share Registry
Automic Pty Ltd
Level 2, 267 St Georges Terrace
PERTH WA 6000
GPO Box 5193 Sydney NSW 2001
Telephone: 1300 288 664
Email:
hello@automicgroup.com.au
Home Exchange
Australian Securities Exchange Limited
Central Park
152 - 158 St Georges Terrace
PERTH WA 6000
ASX Code: LPD, LPDOD
www.lepidico.com
2
0
2
2
L
E
P
I
D
I
C
O
A
N
N
U
A
L
R
E
P
O
R
T