FY 2021
ANNUAL REPORT
LINDIAN RESOURCES LTD
ANNUAL REPORT
For the year ended 30 June 2021
Contents
Contents ................................................................................................................................................................................................................................. 1
Corporate Directory ...................................................................................................................................................................................................... 2
Chairman’s Report ....................................................................................................................................................................................................... 3
Directors’ Report .............................................................................................................................................................................................................4
Remuneration Report (Audited) ....................................................................................................................................................................... 6
Consolidated Statement of Profit or Loss and Other Comprehensive Income ....................................................... 27
Consolidated Statement of Financial Position................................................................................................................................. 28
Consolidated Statement of Cash Flows .................................................................................................................................................. 29
Consolidated Statement of Changes in Equity ................................................................................................................................ 30
Notes to the Financial Statements ............................................................................................................................................................. 32
Directors’ Declaration ............................................................................................................................................................................................. 62
Auditors Independence Declaration .......................................................................................................................................................... 63
Auditors Report ............................................................................................................................................................................................................ 64
Additional ASX Information .............................................................................................................................................................................. 68
1
LINDIAN RESOURCES LTD
ANNUAL REPORT
For the year ended 30 June 2021
Corporate Directory
Directors
Asimwe Kabunga (Non-Executive Chairman)
Giacomo Fazio (Non-Executive Director)
Yves Occello (Non-Executive Director)
Company Secretary
Susan Park
Registered Office
Level 24
108 St Georges Terrace
Perth WA 6000
Telephone: + 61 8 6557 8838
Website: www.lindianresources.com.au
ABN 53 090 772 222
Share Registry
Automic Registry Services
Level 2
267 St Georges Terrace
Perth WA 6000
Telephone: + 61 8 9324 2099
Facsimile: + 61 8 9321 2337
Auditors
HLB Mann Judd
Level 4
130 Stirling Street
Perth WA 6000
Securities Exchange
Australian Securities Exchange
(Home Exchange: Perth, Western Australia)
ASX Code: LIN
2
LINDIAN RESOURCES LTD
CHAIRMAN’S REPORT
For the year ended 30 June 2021
Chairman’s Report
Lindian believes that aluminium is going to play a more significant role in manufacturing with the
lightweight, recyclable material being key to a number of crucial industries focussing on reducing
carbon emissions including wind power, solar power, carbon storage, electric vehicles, electric
motors and energy storage.
Bauxite is the primary feedstock in the manufacture of aluminium metal, and low cost and
sustainable supply is required.
The aluminium sector is becoming increasingly focussed on reducing its CO2 emissions. Lindian
believes that its high alumina containing bauxites, especially at Gaoual, will become increasingly
sought after as its increased levels of alumina lead to greater transport and processing efficiencies.
Over the past 12 months, Lindian has assembled a world class bauxite portfolio in Guinea, a country
that is renowned for high quality bauxite and where there is a long history of mining and processing.
Starting the year with the amazing potential at Gaoual and belief in the strong outlook for
aluminium, Lindian has delivered several key milestones to position the Company as the premier
ASX-listed bauxite development company in Africa.
The year began with the maiden resource statement from the Gaoual Project, which as expected,
confirmed the very high alumina grades. This was followed by the screening test work which
illustrates the opportunity to generate the highest quality bauxite product from the African
continent. Initial feedback from the market is that there is real demand for this highly desirable
and unique product.
The board recognised the opportunity to broaden the Company’s asset base in Guinea with Lindian
securing the Tier 1 Lelouma asset, which is 900Mt of high-quality resource, and the Woula asset,
which is just 10km from an existing haul road linked to a river port. Independently, these assets all
have considerable potential, and together, they have a complementary range of qualities. Their
position along the ‘Northern Corridor’ in Guinea, generally considered as an area with exceptional
quality bauxite, offers the opportunity to link them together with a deep-water export port terminal.
Appreciation of this portfolio has not been restricted to the board and management of Lindian with
significant interest materialising from industry players, manufacturers, refineries, marketing
groups and international logistics providers. We have reported on the signing of MOUs with China
Railway Seventh Group and the Government of Guinea, and I look forward to providing an update on
the progress of these discussions, and others, in due course.
I would like to thank my fellow board members for their support this year in helping to assemble
and indeed advance Lindian’s world class bauxite portfolio which, with the partnerships we currently
have in progress, present considerable opportunity for our shareholders. Our focus in the next year
will be to significantly advance the development of these world class bauxite assets to deliver much
more tangible outcomes for the benefit of all stakeholders.
In closing, the Board and I would like to thank all shareholders for their ongoing support as we
continue to build on the strong foundations which we put in place in FY2021.
Yours sincerely,
Asimwe Kabunga | Chairman
3
LINDIAN RESOURCES LTD
DIRECTORS’ REPORT
For the year ended 30 June 2021
Directors’ Report
The Directors present their report for Lindian Resources Limited (“Lindian” or “the Company”) and
its subsidiaries (“the Group”) for the year ended 30 June 2021.
DIRECTORS
During, or at any time during the financial year and up to the date of this financial report.
Asimwe Kabunga
Non-Executive Chairman
Asimwe Kabunga is a Tanzanian born Australian entrepreneur who holds a Bachelor of Science,
Mathematics and Physics and has extensive technical and commercial experience in Tanzania,
Australia, and the United States.
Mr Kabunga has been instrumental in establishing the Tanzania Community of Western Australia
Inc, and served as its first President. Mr Kabunga was also a founding member of Rafiki Surgical
Missions and Safina Foundation, both Non- Governmental Organisations dedicated to helping
children in Tanzania.
Mr Kabunga has been non-executive chairman of Volt Resources Limited since 4 August 2017 (ASX:
VRC) and was non-executive director of Strandline Resources Limited from 18 June 2015 to 8 October
2018 (ASX: STA). He has not held any other listed directorships in the past three years.
Matthew Bull
Non-Executive Exploration Director (resigned 8 October 2020)
Matthew Bull is an exploration geologist who has worked on a wide range of commodities including
graphite, gold and iron ore. He has considerable experience in greenfield exploration and resource
development programs.
Mr Bull’s professional qualifications include Bachelor of Science Geology (hons).
Mr Bull was non-executive director of Volt Resources Limited from 1 June 2015 to 9 July 2018 (ASX:
VRC). He has not held any other listed directorships in the past three years.
Giacomo Fazio
Non-Executive Director
Giacomo Fazio is a highly experienced project, construction and contract/commercial management
professional having held senior project management roles with Primero Group Limited, Laing
O’Rourke and Forge Group Ltd and is currently a Non-executive Director of ASX listed Volt Resources
Ltd. His experience ranges from feasibility studies through to engineering, procurement,
construction, and commissioning of diverse mining resources, infrastructure, oil & gas and energy
projects.
Mr Fazio’s professional qualifications include a Graduate Certificate in Project, an Associate
Diploma in Civil Engineering and a Diploma in Quantity Surveying.
Mr Fazio has been non-executive director of Volt Resources Limited since 1 July 2019 (ASX: VRC). He
has not held any other listed directorships in the past three years.
4
LINDIAN RESOURCES LTD
DIRECTORS’ REPORT
For the year ended 30 June 2021
Yves Occello
Non-Executive Director (appointed 29 July 2020)
Yves Occello is a 45-year veteran of the bauxite and alumina industry having been COO of Pechiney’s
Bauxite and Alumina Division and Director of Technical Projects at Alcan and Rio Tinto Alcan. He has
held board positions at a number of significant companies, including Compagnie de Bauxite de
Guinee, (“CBG”), a conglomerate bauxite project and Guinea’s largest bauxite producer for the past
30 years, Alufer Mining, the first junior miner to construct and commence bauxite operations in
Guinea, and Aluminium of Greece, one of Europe’s largest alumina refinery and aluminium smelting
complexes.
Further, Mr. Occello’s knowledge and expertise is well recognised within China’s bauxite and alumina
industry and he is an Honorary Director of the Chinese Academy of Sciences in Beijing.
Mr Occello is a Chemical Engineer with many years of practical, hands-on experience across the
aluminium value chain from understanding bauxite resources and their specific chemical and
mineralogical composition, through to the intricate technical requirements of alumina refining.
He has not held any other listed directorships in the past three years.
Susan Park
Company Secretary
Susan Park has over 25 years’ experience in the corporate finance industry and extensive experience
in Company Secretarial and Non-Executive Director roles with ASX, AIM and TSX listed companies.
Mrs Park holds a Bachelor of Commerce degree from the University of Western Australia majoring in
Accounting and Finance, is a Member of Chartered Accountants Australia and New Zealand, a Fellow
of the Financial Services Institute of Australasia, a Graduate Member of the Australian Institute of
Company Directors and a Fellow of the Institute of Chartered Secretaries and Administrators and
Chartered Secretaries Australia and is currently Company Secretary of several ASX listed companies.
DIRECTORS’ MEETINGS
During the financial year, in addition to regular Board discussions, the number of meetings of
Directors held during the year and the number of meetings attended by each Director, including
circular resolutions, were as follows:
Directors
Asimwe Kabunga
Matthew Bull1
Giacomo Fazio
Yves Occello2
Number of Meetings
Eligible to Attend
9
Number of
Meetings Attended
9
5
9
8
5
9
8
1 Matthew Bull resigned on 8 October 2020.
2 Yves Occello was appointed on 29 July 2020.
5
LINDIAN RESOURCES LTD
REMUNERATION REPORT (AUDITED)
For the year ended 30 June 2021
Remuneration Report (Audited)
This report outlines the remuneration arrangements in place for Directors and executives of Lindian
Resources Limited in accordance with the requirements of the Corporation Act 2001 and its
Regulations.
For the purpose of this report, Key Management Personnel (KMP) of the Company are defined as
those persons having authority and responsibility for planning, directing and controlling the major
activities of the Group, directly or indirectly, including any Director (whether executive or otherwise)
of the Group. The remuneration report is set out under the following main headings:
•
•
•
•
•
Principles used to determine the nature and amount of remuneration
Details of remuneration
Service agreements
Share-based compensation
Additional disclosures relating to key management personnel
Principles used to determine the nature and amount of remuneration
The Board is responsible for determining and reviewing compensation arrangements for the
Directors. The Board assesses the appropriateness of the nature and amount of emoluments of such
officers on a periodic basis by reference to relevant employment market conditions with the overall
objective of ensuring maximum stakeholder benefit from the retention of a high-quality board and
executive team. The Group does not link the nature and amount of the emoluments of such officers
to the Group’s financial or operational performance. The expected outcome of this remuneration
structure is to retain and motivate Directors.
As part of its Corporate Governance Policies and Procedures, the Board has adopted a formal
Remuneration Committee Charter. Due to the current size of the Group and number of directors, the
Board has elected not to create a separate Remuneration Committee but has instead decided to
undertake the function of the Committee as a full Board under the guidance of the formal charter.
The rewards for Directors have no set or pre-determined performance conditions or key performance
indicators as part of their remuneration due to the current nature of the business operations. The
Board determines appropriate levels of performance rewards as and when they consider rewards are
warranted.
Details of Remuneration
Details of Key Management Personnel
Key Management Personnel
Position
Asimwe Kabunga
Non-Executive Chairman
Danny Keating
David Sumich
Giacomo Fazio
Matthew Bull
Yves Occello
Chief Executive Officer (appointed 10 August 2020,
resigned 9 November 2020)
Chief Operating Officer/ Chief Financial Officer
(appointed 20 October 2020, resigned 30 June 2021)
Non-Executive Director
Non-Executive Director (resigned 8 October 2020)
Non-Executive Director (appointed 29 July 2020)
6
LINDIAN RESOURCES LTD
REMUNERATION REPORT (AUDITED)
For the year ended 30 June 2021
Details of the nature and amount of each element of the emolument of each Director and executive
of the Group for the financial year are as follows:
2021
Short term
Options
Post-
employment
Base
salary &
annual
leave
$
-
94,479
73,727
-
-
-
168,206
KMP
Asimwe Kabunga
Danny Keating1
David Sumich2
Giacomo Fazio
Matthew Bull3
Yves Occello4
Director
fees
$
60,000
-
-
60,824
15,000
55,000
190,824
Consulting
fees
$
139,478
-
-
-
-
-
139,478
Share
based
payments
$
-
-
-
-
-
-
-
Super-
annuation
$
-
6,705
-
-
-
-
6,705
Total
$
199,478
101,184
73,727
60,824
15,000
55,000
505,213
Performance
related
%
-
-
-
-
-
1.
Danny Keating appointed CEO on 10 August 2020, resigned 9 November 2020. Balance includes pre-appointment
payments made to Mr Keating’s related entity (Madina) of $18,681 (US$13,365).
2. David Sumich appointed COO/ CFO on 20 October 2020, resigned 30 June 2021. Balance includes $3,834 of
reimbursements during the year.
3. Matthew Bull resigned as a non-Executive Director on 8 October 2020.
4.
Yves Occello appointed as a Non-Executive Director on 29 July 2020.
2020
Short term
Options
Post-
employment
Base
salary &
annual
leave
$
-
248,145
-
-
248,145
KMP
Asimwe Kabunga
Shannon Green1
Matthew Bull
Giacomo Fazio2
Director
fees
$
60,000
-
60,000
-
120,000
Consulting
fees
$
46,335
-
-
-
46,335
Share
based
payments
$
-
231,402
-
-
231,402
Super-
annuation
$
-
21,850
-
-
21,850
Total
$
106,335
501,397
60,000
-
667,372
Performance
related
%
-
46%
-
-
35%
Shannon Green appointed Managing Director on 14 June 2019, resigned 30 June 2020.
1.
2. Giacomo Fazjo appointed Non-executive director on 26 June 2020.
There were no other key management personnel of the group during the financial years ended 30
June 2021 and 30 June 2020.
During the 2020 financial year Mr Green was issued 20,000,000 options linked to performance
milestones. These options accounted for 46% of Mr Green’s remunerations for the year.
The Group did not employ the services of any remuneration consultants during the financial year
ended 30 June 2021.
The Group has liabilities of $78,883 for unpaid Key Management Personnel remuneration at 30 June
2021 (2020: $30,343).
7
LINDIAN RESOURCES LTD
REMUNERATION REPORT (AUDITED)
For the year ended 30 June 2021
Chief Executive Officer
Danny Keating was appointed CEO on 10 August 2020 and resigned 9 November 2020.
Service Agreements
Danny Keating and the Company entered into an executive service agreement on 10 August 2020.
Mr Keating was engaged to provide services in the capacity of Chief Executive Officer for an indefinite
term.
Mr Keating was entitled to a minimum notice period of three months from the Company and the
Company was entitled to a minimum notice period of three months from Mr Keating. In the event
that the Company gave notice the Company would be required to make a payment equal to 3 months’
salary at the end of the notice period. In the event of a change in control event including a
redundancy due to a successful takeover or merger of the Company, Mr Keating would have been
entitled to a payment equal to 6 months’ salary plus superannuation.
As part of Mr Keating’s commencement package, the Company had agreed to issue to Mr Keating
33,197,760 unlisted options exercisable in accordance with the milestones below (“Executive
Options”):
Milestone
Exercisable at the price of $0.024 any time after 12
months with the Company
Exercisable at the price of $0.034 any time after 18
months with the Company
Exercisable at the price of $0.044 any time after 24
months with the Company
Total
Expiry Date
6 August 2023
No. of Options
11,065,920
6 August 2023
11,065,920
6 August 2023
11,065,920
33,197,760
As these options required shareholder approval at the 20 November 2020 AGM, and Mr Keating
resigned by mutual agreement before the meeting on the 9 November 2020, the resolution to
approve the options was withdrawn. As such, no options were issued during the year for executive
remuneration and accordingly there was no accounting impact.
Under Mr Keating’s service agreement, Mr Keating’s salary was set at $250,000 per annum plus
minimum statutory superannuation contribution.
Non-Executive Directors
Each non-executive director has a written agreement with the Company that covers all aspects of
their appointment including term, time commitment required, remuneration, disclosure of interests
that may affect independence, guidance on complying with the Company’s corporate governance
policies and the right to seek independent advice, indemnity and insurance arrangements, rights of
access to the Company’s information and ongoing confidentiality obligations as well as roles on the
Company’s committees.
The aggregate remuneration that can be paid to Non-Executive Directors excluding share-based
payments or other employee benefits, has been set at an amount not to exceed $240,000 per annum.
This amount may only be increased with the approval of Shareholders at a general meeting.
Share-based compensation
Issue of shares
There were no shares issued to directors and other key management personnel as part of
compensation during the year ended 30 June 2021 (2020: nil).
Options
There were no unlisted options granted over ordinary shares during the current year affecting
remuneration of directors and other key management personnel.
8
LINDIAN RESOURCES LTD
REMUNERATION REPORT (AUDITED)
For the year ended 30 June 2021
Additional disclosures relating to key management personnel
Key Management Personnel Options
The numbers of options over ordinary shares in the company held during the financial year by each
key management personnel of Lindian Resources Limited, including their personally related parties,
are set out below:
2021
KMPs
Asimwe Kabunga
Danny Keating1
David Sumich2
Giacomo Fazio
Matthew Bull3
Yves Occello4
Balance at
the start of
the year/
appointment
22,500,000
-
-
-
4,000,000
-
26,500,000
Options
granted
Options
exercised
Options
expired
Vested option
Balance at
the end of
the year/
resignation Exercisable
Non-
exercisable
-
-
-
-
-
-
-
(10,000,000)
-
-
-
-
-
(10,000,000)
-
-
-
-
(4,000,000)
-
(4,000,000)
12,500,000
-
-
-
-
-
12,500,000
12,500,000
-
-
-
-
-
12,500,000
-
-
-
-
-
-
-
Danny Keating appointed CEO on 10 August 2020, resigned 9 November 2020.
1.
2. David Sumich appointed COO/ CFO on 20 October 2020, resigned 30 June 2021.
3. Matthew Bull resigned as a non-Executive Director on 8 October 2020.
4.
Yves Occello appointed as a Non-Executive Director on 29 July 2020.
2020
KMPs
Asimwe Kabunga
Shannon Green1
Matthew Bull
Giacomo Fazio2
Balance at
the start of
the year/
appointment
10,000,000
-
4,000,000
-
14,000,000
Options
purchased
-
-
-
-
-
Options
granted
12,500,000
20,000,000
-
-
32,500,000
Options
expired
Vested option
Balance at
the end of
the year/
resignation Exercisable
22,500,000 22,500,000
20,000,000 20,000,000
4,000,000
-
46,500,000 46,500,000
4,000,000
-
-
-
-
-
-
Non-
exercisable
-
-
-
-
-
Shannon Green appointed Managing Director on 14 June 2019, resigned 30 June 2020.
1.
2. Giacomo Fazjo appointed Non-executive director on 26 June 2020.
9
LINDIAN RESOURCES LTD
REMUNERATION REPORT (AUDITED)
For the year ended 30 June 2021
Key Management Personnel Share holdings (including Performance Shares)
The number of shares in the Company held during the financial year by each key management
personnel of Lindian Resources Limited, including their personally related parties, is set out below.
There were no shares granted during the reporting period as compensation.
2021
KMPs
Asimwe Kabunga1
Danny Keating2
David Sumich3
Giacomo Fazio
Matthew Bull4
Yves Occello5
Balance at
the start of
the year/
appointment
81,525,000
-
-
-
28,500,000
-
110,025,000
Shares
Purchased/
Issued on
exercise of
Options
10,000,000
-
-
-
-
-
10,000,000
Shares disposed
/ transferred
Performance
shares granted /
(expired)
-
-
-
-
-
-
-
(11,250,000)
-
-
-
(4,250,000)
-
(15,500,000)
Balance at
the end of
the year/
resignation
80,275,000
-
-
-
24,250,000
-
104,525,000
1.
On 6 December 2020, 5,250,000 and 6,000,000 Class B Performance Shares, held by Mr. Kabunga s related entities
Kabunga Holdings Pty Ltd and Jabari Resources (Tanzania) Limited respectively, lapsed.
2. Danny Keating appointed CEO on 10 August 2020, resigned 9 November 2020.
3. David Sumich appointed COO/ CFO on 20 October 2020, resigned 30 June 2021.
4. Matthew Bull resigned as a non-Executive Director on 8 October 2020.
5.
Yves Occello appointed as a Non-Executive Director on 29 July 2020.
2020
KMPs
Asimwe Kabunga1
Shannon Green2
Matthew Bull3
Giacomo Fazio4
Balance at
the start of
the year/
appointment
64,775,000
-
28,500,000
-
93,275,000
Shares
purchased
Shares disposed
/ transferred
Performance
shares granted /
(expired)
16,750,000
-
-
-
16,750,000
-
-
-
-
-
-
-
-
-
-
Balance at
the end of
the year/
resignation
81,525,000
-
28,500,000
-
110,025,000
Shares held by Asimwe Kabunga include 70,275,000 ordinary shares and 11,250,000 Class B Performance shares.
1.
2. Shannon Green appointed Managing Director on 14 June 2019, resigned 30 June 2020.
3. Shares held by Matthew Bull includes 24,250,000 ordinary shares and 4,250,000 Class B Performance shares.
4. Giacomo Fazio appointed Non-executive director on 26 June 2020.
10
LINDIAN RESOURCES LTD
REMUNERATION REPORT (AUDITED)
For the year ended 30 June 2021
Key Management Personnel Performance Rights
The numbers of performance rights in the company held during the financial year by each key
management personnel of Lindian Resources Limited, including their personally related parties, are
set out below:
2021
KMPs
Asimwe Kabunga1
Danny Keating2
David Sumich3
Giacomo Fazio
Matthew Bull4
Yves Occello5
Balance at
the start of
the year/
appointment
25,500,000
-
-
-
-
-
25,500,000
Rights
purchased
Rights disposed
/ transferred
Performance
Rights granted /
(expired)
Balance at
the end of
the year/
resignation
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
25,500,000
-
-
-
-
-
25,500,000
Balance at the end of the year comprises 10,625,000 Stage 1 and 14,875,000 Stage 2 Performance Rights
1.
2. Danny Keating appointed CEO on 10 August 2020, resigned 9 November 2020.
3. David Sumich appointed COO/ CFO on 20 October 2020, resigned 30 June 2021.
4. Matthew Bull resigned as a non-Executive Director on 8 October 2020.
5.
Yves Occello appointed as a Non-Executive Director on 29 July 2020.
2020
KMPs
Asimwe Kabunga1
Shannon Green2
Matthew Bull
Giacomo Fazio3
Balance at
the start of
the year/
appointment
-
-
-
-
-
Rights
purchased
Rights disposed /
transferred
-
-
-
-
-
-
-
-
-
-
Performance
Rights granted /
(expired)
25,500,000
-
-
-
-
Balance at
the end of
the year/
resignation
25,500,000
-
-
-
-
1.
During the year the company issued 10,625,000 Stage 1 Performance rights and 14,875,000 Stage 2 Performance
right in respect of the Gaoual Bauxite Project (Refer to Note 15f).
2. Shannon Green appointed Managing Director on 14 June 2019, resigned 30 June 2020.
3. Giacomo Fazjo appointed Non-executive director on 26 June 2020.
11
LINDIAN RESOURCES LTD
REMUNERATION REPORT (AUDITED)
For the year ended 30 June 2021
Other transactions with key management personnel
There were no other transactions with key management personnel during the year.
Group performance and its consequences on shareholder wealth
It is not possible at this time to evaluate the Group’s financial performance using generally accepted
measures such as profitability and total shareholder return as the Group is focussed on exploration
activities with no significant revenue stream. This assessment will be developed as and when the
Groups moves from explorer to producer.
The table below shows the gross revenue, losses, and loss per share for the last five years for the
Group:
Revenue and other
income
Net loss
Loss per share
Share price at year end
$
$
Cents
Cents
2021
2020
35,058
58,703
2019
719
2018
4,810
2017
1,541
(1,458,696)
(1,862,151)
(765,688)
(2,621,576)
(872,075)
(0.21)
0.021
(0.35)
0.011
(0.21)
0.011
(0.98)
0.015
(0.43)
0.018
End of remuneration report
12
LINDIAN RESOURCES LTD
DIRECTORS’ REPORT
For the year ended 30 June 2021
INTERESTS IN THE SECURITIES OF THE COMPANY
As at the date of this report, the interests of the Directors in the securities of Lindian Resources
Limited are:
Director
Ordinary Shares
Performance Rights
(Stage 1 & 2)
Unlisted Options over
Ordinary Shares
exercisable at
2 cents each
Asimwe Kabunga
Giacomo Fazio
Yves Occello
80,275,000
-
-
25,500,000
-
-
12,500,000
-
-
RESULTS OF OPERATIONS
The net loss after taxation attributable to the members for the year to 30 June 2021 was $(1,394,867)
(2020: $1,796,601) and the net assets of the Group at 30 June 2021 were $4,656,240 (2020:
$2,514,450).
DIVIDENDS
No dividend was paid or declared by the Company during the year and up to the date of this report.
CORPORATE STRUCTURE
Lindian Resources Limited is a company limited by shares, which is incorporated and located in
Australia.
NATURE OF OPERATIONS AND PRINCIPAL ACTIVITIES
During the financial year, the principal activity was mineral exploration.
REVIEW OF OPERATIONS
2021 Financial Year was a transformational year for Lindian Resources Limited with the execution of
a several critical milestones which have resulted in the Company holding a portfolio of world class
bauxite assets in Guinea. Lindian also advanced discussions with the Government of Guinea and
renowned international logistics partners to take advantage of the growing global demand for
aluminium.
13
LINDIAN RESOURCES LTD
DIRECTORS’ REPORT
For the year ended 30 June 2021
A summary of the JORC resources contained within Lindian’s bauxite portfolio is shown in the
Table below.
Resources
(Mt)
Al2O3
(%)
SiO2
(%)
Category
Cut-off
(Al2O3 %)
Lelouma Project (75% Owned by Lindian)
High Grade Resources
398
48.1
Total Lelouma Resources
900
45.0
Gaoual Project (75% Owned by Lindian)
High Grade Resources
Total Gaoual Resources
83.8
101.5
Woula Project (51 % Owned by Lindian)
High Grade Resources
Total Woula Resources
19.0
64.0
51.2
49.8
41.7
38.7
2.0
2.1
11.0%
11.5%
3.2%
3.1%
Measured +
Indicated
Measured,
Indicated &
Inferred
Indicated
Indicated
Inferred
Inferred
>45
>40
>45
>40
>40
>34
Table 1: Lindian Bauxite Projects – Mineral Resource Estimate (JORC 2012) Summary1
The Company is focused on short-term and long-term project development initiatives from the
Woula, Gaoual and Lelouma projects to deliver maximum value for all stakeholders.
Lindian has identified the ‘Northern Corridor’ as the last high quality bauxite province in Guinea to
be mined and developing this corridor would link the high quality Lindian assets to a proposed deep-
water port located at Dobali.
This infrastructure development is a key aspect of the Company’s longer-term strategy. The
locations of Lindian’s bauxite portfolio are shown in Figure 1 below.
1 Refer ASX releases dated 15 July 2020 (Gaoual Project), 23 September (Woula Project) and 22 October 2020 (Lelouma Project)
14
LINDIAN RESOURCES LTD
DIRECTORS’ REPORT
For the year ended 30 June 2021
Figure 1: Lindian Bauxite Projects
Committed to expediting development of the Northern Corridor, Lindian announced the execution
of a Memorandum of Understanding with reputable construction company China Railway Seventh
Group Co. Ltd2 and, separately, and the Company’s 75% owned infrastructure subsidiary, Terminal
Logistics & Holdings Pte Ltd, entered into a Memorandum of Understanding with the Guinean
Government regarding the Northern Corridor development.
GAOUAL BAUXITE PROJECT JUNE 2021
The Gaoual Bauxite Project is in north western Guinea within the Boké Bauxite Belt. It is situated
south of the township of Gaoual in the northern portion of the Kogon-Tomine interfluve, about 65
km northeast of Sangaredi. The Company has agreements in place to acquire up to 75% of the Gaoual
Bauxite Project. The asset contains conglomerate bauxite at the Bouba plateaux which is the same
type of ore initially discovered at the Sangaredi bauxite deposit which is owned by Compagnie des
Bauxites de Guinée (“CBG”).
Bouba plateaux resource estimate 1
In July 2020, Lindian announced a maiden resource for the Bouba Plateaux (Figure 2) located within
the Gaoual asset.
2 Refer ASX releases dated 27 January 2021 (China Railway Seventh Group Co. Ltd MoU)
15
LINDIAN RESOURCES LTD
DIRECTORS’ REPORT
For the year ended 30 June 2021
Figure 2: Plateaus within the Gaoual Project
A total JORC compliant Indicated Resource of 102Mt @ 49.8% Al2O3 was defined using a cut-off of
40% Al2O3. The resource includes high grade areas with 84Mt @ 51.2% Al2O3 using a higher cut-off of
45% Al2O3 (Table 2).
Resources
Cut-off
Grade
Grade
(Mt)
(Al2O3%)
(Al2O3%)
(SiO2%)
High Grade Resources
83.8
Total Resources
101.5
45
40
51.2
49.8
11.0%
11.5%
Category
Indicated
Indicated
Table 2: Bouba Plateaux Resource Summary
16
LINDIAN RESOURCES LTD
DIRECTORS’ REPORT
For the year ended 30 June 2021
Screening Test Work Results3
The results of screening testwork was announced in January 2021 and confirmed that, with minimal
loss of tonnage, a simple dry screening process significantly reduced SiO2 and increased Al2O3 in the
conglomerate samples.
Dry screening of the high grade Bouba Conglomerate Bauxite Plateau JORC resource ores
demonstrated:
The coarse component (>2mm) of the conglomerate bauxite formed 87.2% of the mass total
in the high-grade ores tested;
The high-grade samples showed the average alumina grade increasing by 8.6% (53.8% Al2O3
to 58.4% Al2O3);
The high-grade samples showed the average silica grade decreasing by 71.4% (9.8% SiO2 to
2.8% SiO2); and
The screening of all high-grade conglomerate samples showed a consistent upgrade of all
samples tested.
Digestion Test Work Results4
Low and high temperature digestion test work was undertaken on the screened ores from the Bouba
Plateau. The objective of this test work was to confirm the performance of the ores within refinery
settings and to confirm the mineralogical make-up of the tested materials.
A total of 28 tests were completed on the coarse fraction bauxite ore samples. Comparison of XRF
and low and high temperature digestion results showed that the bauxite is predominantly gibbsitic
with minor quantities of boehmite (Table 3).
These ores are suitable for processing in both low and high temperature alumina refineries. With the
greatly reduced silica in the beneficiated ores, the silica grades have been decreased to levels
aligned with the highest quality bauxites exported from Guinea. The alumina levels are substantially
higher than any other bauxites within Guinea or even Africa.
Al2O3
SiO2
Fe2O3
LOI
Total Available Alumina
Reactive Silica
Coarse Fraction – High Grade (After screening): Bouba Conglomerate Bauxite Plateau 1
58.4%
2.8%
7.6%
28.1
51.2%
54.4%
1.6%
2.6%
Low Temp
High Temp
Low Temp
High Temp
Table 3: Summary of Digestion Results
LELOUMA BAUXITE PROJECT JUNE 2021
The plateaux hosting the Lelouma bauxite mineralisation are located around 100km northeast of
Sangarédi, site of the CBG railway line loading area. The rail line is in turn around 100 km northeast
of the port in Kamsar, which exports up to 25Mtpa of bauxite. Lelouma is located just 40km from
Lindian’s high grade Gaoual conglomerate bauxite project, with both projects within haul distance
of existing rail infrastructure.
The Lelouma Project has an exceptional resource base and has been systematically explored with
over US$10 million of historic expenditure by Sarmin and Lelouma’s previous owner, Mitsubishi
Corporation.
3 Refer ASX releases dated 04 January 2021 (Screening Results)
4 For further details, see Lindian’s ASX announcement dated 4 February 2021 (Digestion Test Work)
17
LINDIAN RESOURCES LTD
DIRECTORS’ REPORT
For the year ended 30 June 2021
Lelouma Acquisition5
In September 2020, Lindian entered into an Investment Deed to acquire 75% of Sarmin Bauxite
Limited (“Sarmin”), the 100% owner of the Lelouma bauxite project.
Lelouma Resource Estimation6
In October 2020, an updated Mineral Resource statement for the Lelouma Project was prepared and
reported by SRK Consulting (UK) Ltd, in compliance with the JORC Code. The inclusion of new drilling
data into the existing database enabled the reporting of a resource of 900 Mt at 45.0% Al2O3 and 2.1%
SiO2. This additional exploration work has also enabled the definition of 155 Mt at 47.9% Al2O3 and
1.8% SiO2 within the Measured Mineral Resource category confirming the Project’s potential to
produce high-grade ore, delivering some of the highest quality ore into Atlantic and Pacific refinery
markets.
Cut-off Criteria
Mineral Resource
Category
Tonnes (Mt)
Al2O3 (%)
SiO2 (%)
>40% Al2O3
<10% SiO2
>1m Thick
<1 Strip Ratio (waste:ore
thickness)
Measured
Indicated
Measured+Indicated
Inferred
Grand Total M+I+I
155
743
898
2
900
47.9
44.4
45.0
42.9
45.0
1.8
2.1
2.1
2.8
2.1
Table 1: Lelouma Mineral Resource Statement (Inclusive of the Mineral Resources in Table 4)
Cut-off Criteria
>45% Al2O3
<10% SiO2
>1m Thick
<1 Strip Ratio (waste:ore
thickness)
Mineral Resource
Category
Measured
Indicated
Measured+Indicated
Inferred
Grand Total M+I+I
Tonnes (Mt)
Al2O3 (%)
SiO2 (%)
115
284
398
0.1
398
49.6
47.6
48.1
46.1
48.1
1.8
2.1
2.0
2.8
2.0
Table 2: Lelouma High Grade Portion (Included within the Mineral Resources in Table 3)
Drilling and Data Quality
The Lelouma Project has been subject to comprehensive exploration and drill testing by Bureau de
Recherches Géologiques et Minières’ (“BRGM”) on behalf of the Mitsubishi Corporation between
2007 and 2009 with 909 auger holes for 10,090m, 61 core holes for 725m and 7 pits within the
updated permit boundary.
In 2020, Sarmin completed 365 auger drillholes for 3,922 m and 10 core drillholes for 111 m. The
Sarmin drilling was completed at a 150 x 150 m grid spacing infilling the BRGM drilling which was
completed at 300 x 300 m spacing, with minor areas drilled at 600 x 600 m.
5 For further details, see Lindian’s ASX announcement dated 23 September 2020
6 For further details, see Lindian’ s ASX announcement dated 6 October 2020
18
LINDIAN RESOURCES LTD
DIRECTORS’ REPORT
For the year ended 30 June 2021
Figure 3: BRGM and Sarmin drillhole collars within
the Lelouma permit boundary (red)
Figure 4: Drillhole and pit collars coloured by drill
type with Lelouma permit boundary (red)
Mineral Resource Estimate
SRK undertook the geological modelling in Datamine mining software package. All available data
within the permit area supplied to SRK was used during the creation of the geological model.
SRK used Ordinary Kriging in Datamine to interpolate major oxide sample grades into a 3D block
model (utilising percentage-space conversions to honour grade profiles during estimation) and
assessed the estimation quality and fully validated the model.
The validation process confirmed the robustness of the parameters used and the resultant model.
Figure 5: West-East cross-section through the main Bougoumé plateau showing gridded wireframe surfaces
and drillholes (vertical exaggeration x 5)
Mineral Resource Classification
The block model has been classified in the Measured, Indicated and Inferred Mineral Resource
categories as defined by the JORC Code.
19
LINDIAN RESOURCES LTD
DIRECTORS’ REPORT
For the year ended 30 June 2021
WOULA BAUXITE PROJECT 2021
On 16 December 2020, Lindian announced the completion of the acquisition of 51% of the Woula
Project following approval from the Guinea Ministry of Mines7 and approval at the 2020 Annual
General Meeting of Lindian. Lindian has the ability to increase its stake in the Company to 75% by
completing a JORC scoping study within 18 months of completion occurring.
Overview
The Woula Project is located in north-western Guinea, proximal to the coast and just 10km from an
existing haul road which is connected to the Katougouma river port. A number of zones have been
identified which may be amenable to be selectively mined to produce a bauxite product with low
silica and with minimal other deleterious elements for which Guinea is renowned globally. This may
mean that in the short-term and for modest capital investment, DSO bauxite product may be able
to be delivered to the mine gate or river port for sale to third parties.
Figure 6 – Woula Bauxite Project
7 For further details, see Lindian’s ASX announcement dated 16 December 2020
20
LINDIAN RESOURCES LTD
DIRECTORS’ REPORT
For the year ended 30 June 2021
The Woula Project was explored historically by the Mitsubishi Corporation which discovered a
number of bauxitised plateaus within the permit area. The Woula Project has been subject to
considerable exploration on its southern side, but the eastern, north-south trending limb of the
permit remains relatively underexplored with only a few scout holes completed historically. Lindian
will target this area, looking to increase the scale of the resources and identify further higher-grade
zones.
Woula Mineral Resource Statement 8
The Mineral Resource statement for the Woula Bauxite Project was prepared and reported by SRK
Consulting (UK) Ltd (“SRK”) by constraining the in-situ model using cut-off grades >34% Al2O3 and
<10% SiO2, a maximum stripping ratio of 1:1 (thickness overburden / thickness bauxite) and a
minimum bauxite thickness of 1 m, all to satisfy the criteria of reasonable prospects for eventual
economic extraction. No pit optimisation was used to constrain the Mineral Resource due to the very
shallow and low stripping nature of the deposit. All tonnages and grades are reported on a dry basis.
These parameters are guided by and have been validated using SRK’s experience of other Guinea
bauxite operations.
Cut-off Criteria
>34% Al2O3
10% SiO2 / >1m Thick / <1 Strip
Ratio (waste:ore thickness)
Mineral Resource
Category
Inferred
Total
Tonnes
(Mt)
64
64
Al2O3
38.7
38.7
SiO2
3.1
3.1
Table 5 - Woula Mineral Resource Statement (inclusive of Mineral Resources stated in
Table 3)
There are higher grade zones within the Woula Project and to demonstrate this, a separate split of
material >40% Al2O3 has been provided for the purpose of this announcement.
Cut-off Criteria
>40% Al2O3
10% SiO2 / >1m Thick / <1 Strip
Ratio (waste:ore thickness)
Mineral Resource
Category
Inferred
Total
Tonnes
(Mt)
19
19
Al2O3
41.7
41.7
SiO2
3.2
3.2
Table 3 - Woula High Grade (Contained within the Mineral Resources as stated in
GUINEA BULK INFRASTRUCTURE STATUS
Operating Model
Lindian has established an operating and infrastructure model9 for the development of bauxite
projects where the infrastructure ownership will be separated from the mining ownership. The key
benefits of this model include:
Allows non-mining investors to participate in infrastructure equity;
Provides potential revenue generation to Lindian from 3rd party access and usage of
infrastructure;
Reduction in Lindian’s CAPEX as infrastructure CAPEX is separated;
Lindian maintains control of access and usage of key infrastructure; and
Increases likelihood of development funding.
8 For further details, see Lindian’s ASX announcement dated 23 September 2020.
9 For further details, see Lindian’s ASX announcement dated 22 February 2021.
21
LINDIAN RESOURCES LTD
DIRECTORS’ REPORT
For the year ended 30 June 2021
Near Term Infrastructure Opportunities
Discussions with various infrastructure providers have been progressing regarding a range of
options including:
Obtaining access to existing haul roads and rail and port infrastructure in Guinea;
Mine gate sale and/or rail/export terminal head bauxite sale options.
Lindian has also entered into a non-binding MOU with an existing Guinean infrastructure provider
that sets out a framework for conducting further discussions to seek to agree the commercial terms
of ownership, access and use of relevant infrastructure and the sale and purchase of bauxite.
However, those arrangements are non-binding and there is no certainty that any further discussions
will lead to a binding infrastructure solution for Lindian’s Guinean bauxite projects.
Long Term Strategy – Northern Corridor
Lindian’s long term production strategy consists of establishing a “Northern Corridor”, which is the
last area of high-quality Guinean bauxite that is yet to be developed.
Significant infrastructure investment and development in Guinea have enabled bauxite exports
from the country to increase by 350% in the last 8 years from 18.5Mt in 2013 to 66.3Mt in 2019. This
has established Guinea as the main exporter of bauxite to China globally. The historic and recent rail
infrastructure development has unlocked two high grade Guinea bauxite provinces:
Sangaredi: CBG, Rusal Dian Dian and GAC; and
Boffa-Santou-Houda: Chalco and SMB.
The third high-grade province in Guinea remains undeveloped due to lack of infrastructure. This is
largely due to the non-integration of infrastructure between the different mining companies into a
single optimised and multi-user infrastructure corridor
Mutualisation of infrastructure is critical as it reduces the impact on the environment and
communities, reduces the capital cost per tonne of capacity and also reduces the operating costs
making projects more profitable, more attractive to investors and generating greater tax revenues.
Lindian is proposing the development of the Northern Rail and Port Corridor that will not only serve
its three projects, namely Woula, Gaoual and Lelouma, but also pave the way for the development of
other projects.
LUSHOTO AND PARE BAUXITE PROJECTS, TANZANIA
Overview
The Lushoto and Pare bauxite projects are subject to a Farm-In and Joint Venture Agreement
pursuant to which Lindian has earned a 51% Stage 1 interest in East Africa Bauxite Limited. Lindian
Resources have decided not to pursue the 75% Stage 2 interest, with focus being on the Guinea
project.
Exploration Work
No meaningful work has been undertaken on the Tanzanian projects.
UPDATE ON LITIGATION: KANGANKUNDE RARE EARTHS PROJECT, MALAWI10
The Company originally entered into an exclusive option agreement with Saner and RVR which was
announced to the ASX on 6 August 2018. As detailed in the statement the Company made to the ASX
on 23 November 2018, Saner and RVR subsequently claimed that changed circumstances in Malawi
made the agreement unenforceable and made an offer to enter into a separate agreement for the
sale of the Project on completely different terms to those originally agreed between the Company,
Saner and RVR.
10 For further details, see Lindian’s ASX announcement dated 24 July 2020.
22
LINDIAN RESOURCES LTD
DIRECTORS’ REPORT
For the year ended 30 June 2021
On 8 July 2020, Lindian announced that it had filed a notice of appeal with the High Court of Malawi.
The opinion of the Company’s legal counsel is that the Company has a strong case. On 23 July 2020,
the Company received further correspondence from legal counsel representing Saner and RVR which
details another offer also on different terms to those originally agreed. The Company has been made
aware of Mr. Saner’s recent passing but has received legal advice which states his death does not
have an effect in our appeal proceedings. On 28 September 2021, the company announced the
Malawi Supreme Court of Appeal will hear an appeal on 8 December 2021 in relation to the exclusive
Option Agreement for the Kangankunde Rare Earth Project in Malawi and the ongoing dispute
against Michael Saner and Rift Valley Resource Developments Limited regarding the project.
Corporate
On 8 July 2020, the Company announced a notice of appeal had been filed at the High Court of Malawi
in relation to the legal action in respect of an exclusive option agreement for the Kangankunde Rare
Earths Project in Malawi. The appeal is in relation to the action by the Company against Michael
Saner and Rift Valley Resource Developments Limited.
On 15 July 2020, the Company announced a definitive maiden Resource for its high grade
conglomerate bauxite Gaoual project in Guinea of a total JORC Compliant Indicated Resource of
102Mt at 49.8% AI2O3. The Resource included a high grade tonnage of 84Mt at 51.2% AI2O3.
On 24 July 2020, the Company announced that it had received an offer from the legal counsel
representing Michael Saner and Rift Valley Resource Developments Limited to settle out of court.
On 29 July 2020, Mr Yves Occello was appointed a Non-Executive Director of the Company.
On 10 August 2020, the Company announced the appointment of Mr Danny Keating as Chief
Executive Officer, effective immediately.
On 23 September 2020, the Company announced it had signed a binding agreement to acquire a
75% effective interest in the Lelouma Bauxite Project in Guinea. The project has a JORC Compliant
Mineral Resource of 847 million tonnes at 45.1% A12O3 and 2.1% SiO2 (Indicated and Inferred
combined), as estimated by SRK Consulting (UK) Limited. The acquisition to be effected through the
acquisition of a 75% interest in Lelouma Bauxite Limited (Mauritius) (formerly Sarmin Bauxite
Limited), a private company, indirectly holding the rights for the Lelouma Bauxite Project through
its wholly owned Guinean subsidiary (Sarmin Bauxite Guinea SARL) in exchange for the total issue
of 30,674,847 fully paid ordinary shares to existing shareholders (Sarmin Mining Inc. and Kanberra
Resources Limited). The acquisition completed on 26 November 2020, being the latter of
shareholder and government approval.
On 24 September 2020, the Company issued 30,674,847 shares to a sophisticated investor at $0.0163
per share, to raise $500,000.
In September 2020, the Company additionally issued 1,666,667 shares as a result of the exercise of
1,666,667 $0.02 options, expiring 31 December 2020.
On 6 October 2020, the Company announced an update to the Mineral Resource for the Lelouma
Bauxite Project to a total JORC compliant Mineral Resource of 900Mt at 45.0% AI2O3 and 2.1% SiO2 .
On 8 October 2020, Matthew Bull resigned as a Non-Executive Director of the Company.
On 20 October 2020, Mr David Sumich was appointed to the dual role of COO and CFO.
On 22 October 2020, the Company announced it had signed an agreement to acquire up to a 75%
interest in the Woula Bauxite Project in Guinea. The project has a JORC Compliant Mineral Resource
of 64 million tonnes at 38.7% A12O3 and 3.1% SiO2 (Inferred), as estimated by SRK Consulting (UK)
Limited. The Company will initially acquire a 61% interest in the Woula Bauxite Project through the
payment of cash consideration of A$196,980 (US$150,000) to the existing owners of the Woula
Bauxite Project in addition to non-cash consideration of $245,399, comprising 12,269,939 shares to
23
LINDIAN RESOURCES LTD
DIRECTORS’ REPORT
For the year ended 30 June 2021
Asena Pte Ltd (“Asena”) at a fair value of 2 cents each for the assignment of Asena’s rights under a
pre-existing agreement with the owners of the Project, for a total purchase consideration of $442,379
(excluding transaction costs of $27,922). The acquisition completed on 16 December 2020, being
the latter of shareholder and government approval, with the shares issued to Asena on 13 April 2021.
On 9 November 2020, the Company announced the termination of Mr Danny Keating’s CEO
agreement with mutual agreement given the COVID restriction imposed on the ability for Mr Keating
to travel from his UK base.
As at the same date, shareholders approved the issue of 19,598,160 shares to Sarmin Mining Inc. and
11,076,687 shares to Kanberra Resources Limited respectively, totalling 30,674,847 shares at 2 cents
per share for a total fair value of $613,497 (excluding transaction costs of $222,776) for the Group’s
75% effective controlling interest in the Lelouma Bauxite Project.
In addition, at the Company’s AGM, shareholders approved the issue of 12,269,939 shares to Asena
Pte Ltd in exchange for acquiring Asena’s rights under the binding term sheet signed on 22 October
2020 for the Woula Bauxite Project, as described above.
In late November 2020, the Company issued 30,674,847 shares to sophisticated investors at $0.0163
per share, to raise $500,000.
On 26 November 2020, the Company completed the acquisition of the Lelouma Bauxite Project, as
described above.
On 6 December 2020, 25 million Class B Performance Shares expired.
On 16 December 2020, the Company completed the acquisition of the Woula Bauxite Project, as
described above.
On 24 December 2020, the Company issued 15,000,000 fully paid ordinary shares as a result of the
exercise of 15 million options exercisable at 2 cents (expiry 31 December 2020), to raise $300,000.
On 29 December 2020, an extension was granted such that the Group is required to give written
notice, on or before 31 December 2022, to elect to continue to sole fund Group’s Tanzanian Bauxite
Projects to acquire the Stage 2 interest. As at the date of this report, the Group owing a 51% interest
in the Projects through the acquisition of Batan Pty Limited in the prior year. If the Group chooses
not to elect to sole fund the Project by proceeding to fund the Stage 2 farm in expenditure (to earn a
further 24% interest), Lindian may elect on or before 31 December 2022 to dispose of its Stage 1
shareholders in existing proportion to their then interests for a total consideration of $1 on the
satisfaction of Lindian obtaining all necessary regulatory and shareholder approvals.
On 31 December 2020, the Company issued 25,025,000 fully paid ordinary shares as a result of the
exercise of 25,025,000 options exercisable at 2 cents (expiry 31 December 2020), to raise $500,500.
On 14 May 2021, Lindian incorporated Northern Rail Pte Ltd, a Singaporean entity for the sole purpose
of pursuing an infrastructure solution for the Group’s projects.
On 27 January 2021, the Group executed a Memorandum of Understanding (“MOU”), with China
Railway Seventh Group Co. Ltd (“CRSG”), a wholly owned subsidiary of state-owned enterprise China
Railway Group Limited. Under the terms of the MOU, Lindian will explore a formal agreement whereby
an infrastructure solution is found for the Group’s Woula, Gaoual Conglomerate and Lelouma
Projects (as described in more detail in the Review of Operations earlier in this report).
On 10 February 2021, Lindian Resources Limited entered into a share subscription agreement to
subscribe for 300 shares in Terminal Logistics & Holdings Pte Ltd (“TLH”), a special purpose entity
incorporated in Singapore on 5 October 2020 at a price of US$5 per share, for a 75% controlling
interest in TLH. The subscription for the shares included a commitment by Lindian to fund all
legal costs until 31 January 2021 associated with the preparation of the MOU with the Ministry of
24
LINDIAN RESOURCES LTD
DIRECTORS’ REPORT
For the year ended 30 June 2021
Transport of Guinea regarding the potential exploration and joint development of the Port of Dobali
and the associated logistics corridor in Guinea.
On 9 February 2021, Lindian announced that TLH had entered the MOU with the Guinean Government.
On 13 April 2021, Lindian issued the 12,269,939 shares to Asena, previously approved at the
Company’s AGM in relation to the acquisition of the Woula Bauxite Project that completed on 16
December 2020.
On 22 June 2021, the Company issued 20,000,000 fully paid ordinary shares as a result of the
exercise of 20 million options exercisable at 2 cents (expiry 30 June 2021), to raise $400,000.
On 30 June 2021, the Company announced the resignation of the COO/CFO, Mr David Sumich, from
the Company to pursue other opportunities. From this date, the COO duties have been shared
between the existing Board members.
on 22 July 2021 and 3 September 2021, the Group changed the names of its Sarmin Bauxite Guinea
SARL and Sarmin Bauxite Limited subsidiaries to Lelouma Bauxite Guinea SARL and Bauxite
Holdings Limited respectively.
On 28 September 2021, the company announced the Malawi Supreme Court of Appeal will hear an
appeal on 8 December 2021 in relation to the exclusive Option Agreement for the Kangankunde Rare
Earth Project in Malawi and the ongoing dispute against Michael Saner and Rift Valley Resource
Developments Limited regarding the project.
SIGNIFICANT CHANGES IN THE STATE OF AFFAIRS
There have been no other significant changes in the state of affairs of the Group during the financial
year.
SIGNIFICANT EVENTS AFTER THE BALANCE DATE
The Company acknowledges the fluid situation in the Republic of Guinea an provided an update to
the ASX on 7 September 2021 on this matter. The announcement is available at www.asx.com.au
(ticker code: LIN). There is no further update to the matters raised in the announcement.
As described above, on 22 July 2021 and 3 September 2021, the Group changed the names of its
Sarmin Bauxite Guinea SARL and Sarmin Bauxite Limited subsidiaries to Lelouma Bauxite Guinea
SARL and Bauxite Holdings Limited respectively.
As described above, on 28 September 2021, the company announced the Malawi Supreme Court of
Appeal will hear an appeal on 8 December 2021 in relation to the exclusive Option Agreement for the
Kangankunde Rare Earth Project in Malawi and the ongoing dispute against Michael Saner and Rift
Valley Resource Developments Limited regarding the project.
Other than the matter disclosed above, there have been no other material subsequent events
requiring disclosure up to the date of this report.
LIKELY DEVELOPMENTS AND EXPECTED RESULTS OF OPERATIONS
The Directors have excluded from this report any further information on the likely developments in
the operations of the Company and the expected results of those operations in future financial years,
as the Directors believe that it would be speculative and prejudicial to the interests of the Company.
ENVIRONMENTAL REGULATIONS AND PERFORMANCE
The Group is not aware of any breaches in relation to environmental matters.
25
LINDIAN RESOURCES LTD
DIRECTORS’ REPORT
For the year ended 30 June 2021
SHARE OPTIONS
As at the date of this report, there were 110,887,347 unissued ordinary shares under options. The
details of the options at the date of this report are as follows:
Number
30,674,847
80,212,500
Exercise Price $
0.032
0.02
Expiry Date
28 September 2023
20 November 2022
No option holder has any right under the options to participate in any other share issue of the
company or any other entity.
A total of 30,674,847 (2020: 133,875,000) options were issued during the year, 61,691,667options were
exercised (2020: 76,637,500) during the year and 80,333,334 options expired (2020: nil) during the
year.
INDEMNIFICATION AND INSURANCE OF DIRECTORS AND OFFICERS
The Company has made an agreement indemnifying all the Directors and officers of the Company
against all losses or liabilities incurred by each Director or officer in their capacity as Directors or
officers of the Company to the extent permitted by the Corporations Act 2001. The indemnification
specifically excludes wilful acts of negligence. The Company paid insurance premiums in respect
of Directors’ and Officers’ Liability Insurance contracts for current officers of the Company, including
officers of the Company’s controlled entities. The liabilities insured are damages and legal costs
that may be incurred in defending civil or criminal proceedings that may be brought against the
officers in their capacity as officers of entities in the Group. The total amount of insurance premiums
paid has not been disclosed due to confidentiality reasons.
PROCEEDINGS ON BEHALF OF COMPANY
No person has applied for leave of court to bring proceedings on behalf of the Company or intervene
in any proceedings to which the Company is a party for the purpose of taking responsibility on behalf
of the Company for all or any part of those proceedings. The Company was not a party to any such
proceedings during the year.
INDEMNITY AND INSURANCE OF AUDITOR
The Company has not, during or since the end of the financial year, indemnified or agreed to
indemnify the auditor of the company or any related entity against a liability incurred by the auditor.
CORPORATE GOVERNANCE
A copy of Lindian’s 2021 Corporate Governance Statement, which provides detailed information
about governance, and a copy of Lindian’s Appendix 4G which sets out the Company’s compliance
with the recommendations in the fourth edition of the ASX Corporate Governance Council’s
Principles and Recommendations is available on the corporate governance section of the Company’s
website at https://www.lindianresources.com.au/corporate.
AUDITOR INDEPENDENCE AND NON-AUDIT SERVICES
Section 307C of the Corporations Act 2001 requires the Company’s auditors to provide the Directors
of Lindian Resources Limited with an Independence Declaration in relation to the audit of the full
year financial report. A copy of that declaration forms part of this report.
There were no non-audit services provided by the Company’s auditor.
Signed on behalf of the Board in accordance with a resolution of the Directors.
Asimwe Kabunga | Chairman
29 September 2021
26
LINDIAN RESOURCES LTD
FINANCIAL STATEMENTS
For the year ended 30 June 2021
Consolidated Statement of Profit or Loss and Other
Comprehensive Income
For the year ended 30 June 2021
Revenue
Interest income
Other income
Expenses
Depreciation / immediate asset write-off
Consulting and directors’ fees
Share based payments
Impairment of exploration and evaluation assets
Exploration and evaluation expenses
Finance costs
Other expenses
Loss before income tax
Income tax (expense)/benefit
Loss after income tax
Other comprehensive income, net of income tax
Items that may be reclassified subsequently to
profit or loss
Exchange differences on translation of foreign
operations
Other comprehensive loss for the year, net of
income tax
Total comprehensive loss for the year
Loss attributable to:
Owners of Lindian Resources Limited
Non-controlling interests
Total comprehensive loss attributable to:
Owners of Lindian Resources Limited
Non-controlling interests
Note
2021
$
2020
$
63
34,995
378
58,325
(4,915)
(330,302)
-
(53,838)
-
(837)
(1,103,862)
(1,458,696)
-
(1,458,696)
(10,704)
(137,585)
(336,464)
(511,876)
(75,853)
(1,954)
(846,418)
(1,862,151)
-
(1,862,151)
4
5
38,660
4,310
38,660
4,310
(1,420,036)
(1,857,841)
(1,394,867)
(63,829)
(1,458,696)
(1,796,601)
(65,550)
(1,862,151)
(1,376,052)
(43,984)
(1,420,036)
(1,794,146)
(63,695)
(1,857,841)
Loss per share attributable to owners of Lindian
Resources Limited
Basic and diluted loss per share (cents per share)
20
(0.21)
(0.35)
The accompanying notes form part of these financial statements.
27
LINDIAN RESOURCES LTD
FINANCIAL STATEMENTS
For the year ended 30 June 2021
Consolidated Statement of Financial Position
As at 30 June 2021
Current Assets
Cash and cash equivalents
Trade and other receivables
Prepayments
Total current assets
Non-current Assets
Deferred exploration and evaluation expenditure
Property, plant and equipment
Total non-current assets
Total assets
Current Liabilities
Trade and other payables
Unearned income
Provisions
Borrowings
Total current liabilities
Net assets
Equity
Share capital
Reserves
Accumulated losses
Non-controlling interests
Total equity
Note
2021
$
2020
$
6
7
8
9
10
11
12
13
14
15
16
17
19
500,761
10,626
21,677
533,064
4,319,932
109,362
4,429,294
4,962,358
306,118
-
-
-
306,118
4,656,240
614,098
40,042
18,507
672,647
1,938,156
30,741
1,968,897
2,641,544
104,639
11,665
-
10,790
127,094
2,514,450
35,450,160
9,736,281
(40,929,235)
4,257,206
399,034
4,656,240
32,424,788
9,717,466
(39,534,368)
2,607,886
(93,436)
2,514,450
The accompanying notes form part of these financial statements.
28
LINDIAN RESOURCES LTD
FINANCIAL STATEMENTS
For the year ended 30 June 2021
Consolidated Statement of Cash Flows
For the year ended 30 June 2021
Note
2021
$
2020
$
Cashflows from Operating Activities
Government incentive received
Payments to suppliers and employees
Interest received
Finance costs
Net cash used in operating activities
Cashflows from Investing Activities
Payments for exploration expenditure
Payments for plant and equipment
Net cash used in investing activities
Cashflows from Financing Activities
Proceeds from issue of shares and exercise of
options
Proceeds from borrowings
Repayment of borrowings
Share issue costs
Net cash from financing activities
Net (decrease) /increase in cash held
Cash and cash equivalents at beginning of period
Foreign exchange on cash balances
Cash and cash equivalents as at year end
6
9
15
14
14
6
62,020
(1,279,968)
63
(837)
(1,218,722)
19,950
(1,167,218)
378
(1,954)
(1,148,844)
(965,537)
(83,536)
(1,049,073)
(1,298,326)
-
(1,298,326)
2,233,833
-
(10,790)
(67,356)
2,155,687
(112,108)
614,098
(1,229)
500,761
3,152,750
35,966
(25,176)
(139,291)
3,024,249
577,079
37,019
-
614,098
The accompanying notes form part of these financial statements.
29
LINDIAN RESOURCES LTD
FINANCIAL STATEMENTS
For the year ended 30 June 2021
Consolidated Statement of Changes in Equity
Consolidated Statement of Changes in Equity
For the year ended 30 June 2021
Share capital
$
Accumulated
losses
$
Option
reserve
$
Share-based
payment
reserve
$
Foreign
currency
translation
reserve
$
Attributable
to the owners
of Lindian
Resources
$
Non-
controlling
interests
$
Total equity
$
32,424,788
-
-
-
(39,534,368)
(1,394,867)
-
(1,394,867)
4,106,626
-
-
-
5,609,570
-
-
-
1,270
-
18,815
18,815
2,607,886
(1,394,867)
18,815
(1,376,052)
(93,436)
(63,829)
19,845
(43,984)
2,514,450
(1,458,696)
38,660
(1,420,036)
1,858,896
1,233,833
-
-
(67,357)
-
35,450,160
-
-
-
-
-
-
-
-
-
(40,929,235)
-
-
-
4,106,626
-
-
-
-
-
-
5,609,570
-
-
-
-
-
-
20,085
1,858,896
1,233,833
-
-
1,858,896
1,233,833
-
-
(67,357)
-
4,257,206
231,190
231,190
305,264
-
-
399,034
305,264
(67,357)
-
4,656,240
At 1 July 2020
Loss for the year
Other comprehensive loss
Total comprehensive loss
Transactions with owners in
their capacity as owners
Shares issued
Exercise of options
Non-controlling interest
arising on the acquisition of
the Lelouma Bauxite Project
Non-controlling interest
arising on the acquisition of
the Woula Bauxite Project
Cost of share issue
Share based payments
At 30 June 2021
30
LINDIAN RESOURCES LTD
FINANCIAL STATEMENTS
For the year ended 30 June 2021
Consolidated Statement of Changes in Equity
For the year ended 30 June 2020
Share capital Accumulated
losses
Option
reserve
Share-based
payment
reserve
Foreign
currency
translation
reserve
Attributable
to the owners
of Lindian
Resources
Non-
controlling
interests
Total equity
At 1 July 2019
Loss for the year
Other comprehensive loss
Total comprehensive loss
Transactions with owners in
their capacity as owners
Shares issued
Cost of share issue
Share based payments
At 30 June 2020
29,126,329
-
-
-
(37,737,767)
(1,796,601)
-
(1,796,601)
3,437,750
(139,291)
-
32,424,788
-
-
-
(39,534,368)
4,106,626
-
-
-
-
-
-
4,106,626
5,273,106
-
-
-
-
-
336,464
5,609,570
(1,185)
-
2,455
2,455
-
-
-
1,270
767,109
(1,796,601)
2,455
(1,794,146)
3,437,750
(139,291)
336,464
2,607,886
(29,741)
(65,550)
1,855
(63,695)
-
-
-
(93,436)
737,368
(1,862,151)
4,310
(1,857,841)
3,437,750
(139,291)
336,464
2,514,450
The accompanying notes form part of these financial statements.
31
LINDIAN RESOURCES LTD
DIRECTOR’S DECLARATION
For the year ended 30 June 2021
Corporate Information
Notes to the Financial Statements
1.
The financial report of Lindian Resources Limited (“Lindian Resources” or “the Company”) and its
controlled entities (“the Group”) for the year ended 30 June 2021 was authorised for issue in
accordance with a resolution of the Directors 29 September 2021.
Lindian Resources Limited is a company limited by shares incorporated in Australia whose shares
are publicly traded on the Australian Securities Exchange.
Summary of Significant Accounting Policies
Basis of preparation
2.
(a)
The financial report is a general-purpose financial report, which has been prepared in accordance
with Australian Accounting Standards, Australian Accounting Interpretations, other authoritative
pronouncements of the Australian Accounting Standards Board and the Corporations Act 2001. The
Group is a for-profit entity for financial reporting purposes under Australian Accounting Standards.
The financial report has been prepared on an accrual basis and is based on historical costs,
modified, where applicable, by the measurement at fair value of selected non-current assets,
financial assets and financial liabilities. Material accounting policies adopted in preparation of this
financial report are presented below and have been consistently applied unless otherwise stated.
The presentation currency is Australian dollars.
Going Concern
This report has been prepared on the going concern basis, which contemplates the continuity of
normal business activity and the realisation of assets and settlement of liabilities in the normal
course of business.
The Group incurred a net loss after tax for the year ended 30 June 2021 of $1,458,696 (2020:
$1,862,151) and experienced net cash outflows from operating activities of $1,218,722 (2020:
$1,148,844). At 30 June 2021, the cash and cash equivalents balance was $500,761 (2020: $614,098).
The ability of the Group to continue as a going concern is principally dependent upon the ability of
the Company raising capital from equity and debt markets as completed during the year and
managing cashflow in line with available funds.
The Directors have prepared a cash flow forecast, which indicates that the Group will have sufficient
cash flows to meet all currently forecasted commitments and working capital requirements for the
12 month period from the date of signing this financial report.
During the year, the Company raised $2,233,833 (2020: $3,152,750) from equity markets and the
exercise of options (before costs) The Company may need to raise further capital in order to fund
future exploration programs.
Based on the cash flow forecasts, and other factors referred to above, the directors are satisfied that
the going concern basis of preparation is appropriate. In particular, given the Company’s history of
raising capital to date, the Directors are confident of the Company’s ability to raise additional funds
as and when they are required, should the need arise.
However, if the Group is not successful in securing sufficient funds through capital raising or
exercise of options, there is a material uncertainty that may cast significant doubt on whether the
Group is able to continue as a going concern and as to whether the Group will be able to realise its
assets and extinguish its liabilities in the normal course of business and at amounts stated in the
financial statements. The financial statements do not include any adjustments relating to the
recoverability and classification of asset carrying amounts or to the amount and classification of
liabilities that might result should the Group be unable to continue as a going concern and meet its
debts as and when they fall due.
32
LINDIAN RESOURCES LTD
DIRECTOR’S DECLARATION
For the year ended 30 June 2021
Parent entity information
(b)
In accordance with the Corporations Act 2001, these financial statements present the results of the
Group only. Supplementary information about the parent entity is disclosed in note 27.
Compliance statement
(c)
Australian Accounting Standards set out accounting policies that the AASB has concluded would
result in a financial report containing relevant and reliable information about transactions, events
and conditions. Compliance with Australian Accounting Standards ensures that the financial
statements and notes also comply with International Financial Reporting Standards.
Adoption of new and revised standards
(d)
Standards and Interpretations applicable to 30 June 2021
In the year ended 30 June 2021, the Directors have reviewed all new and revised Standards and
Interpretations issued by the AASB that are relevant to the Group and effective for the current annual
reporting period. The overall impact on the Group’s reported results for the year was nil.
Basis of consolidation
(e)
The consolidated financial statements comprise the financial statements of Lindian Resources
Limited and its subsidiaries as at 30 June each year (‘the Company’).
Subsidiaries are all those entities (including special purpose entities) over which the Company has
control. The Company controls an entity when the company is exposed to, or has rights to, variable
returns from its involvement with the entity and has the ability to affect those returns through its
power to direct the activities of the entity.
The financial statements of the subsidiaries are prepared for the same reporting period as the parent
Company, using consistent accounting policies.
In preparing the consolidated financial statements, all intercompany balances and transactions,
income and expenses and profit and losses resulting from intra-company transactions have been
eliminated in full. Subsidiaries are fully consolidated from the date on which control is obtained by
the Company and cease to be consolidated from the date on which control is transferred out of the
Company.
The acquisition of subsidiaries is accounted for using the acquisition method of accounting. The
acquisition method of accounting involves recognising at acquisition date, separately from
goodwill, the identifiable assets acquired, the liabilities assumed and any non-controlling interest
in the acquiree. The identifiable assets acquired, and the liabilities assumed are measured at their
acquisition date fair values.
The difference between the above items and the fair value of the consideration (including the fair
value of any pre-existing investment in the acquiree) is goodwill or a discount on acquisition.
A change in the ownership interest of a subsidiary that does not result in a loss of control is
accounted for as an equity transaction.
Foreign currency translation
(f)
Functional and presentation currency
Items included in the financial statements of each of the Company’s entities are measured using
the currency of the primary economic environment in which the entity operates (‘the functional
currency’). The functional and presentation currency of Lindian Resources Limited is Australian
Dollars. The functional currency of the Group’s subsidiaries are the local currency in which each
entity operates. Refer note 19.
33
LINDIAN RESOURCES LTD
DIRECTOR’S DECLARATION
For the year ended 30 June 2021
Transactions and balances
Foreign currency transactions are translated into the functional currency using the exchange rates
prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from the
settlement of such transactions and from the translation at year end exchange rates of monetary
assets and liabilities denominated in foreign currencies are recognised in the statement of
comprehensive income.
Group entities
The results and financial position of all the Company entities (none of which has the currency of a
hyperinflationary economy) that have a functional currency different from the presentation currency
are translated into the presentation currency as follows:
assets and liabilities for each statement of financial position presented are translated at
the closing rate at the date of that statement of financial position;
income and expenses for each statement of comprehensive income are translated at
average exchange rates (unless this is not a reasonable approximation of the rates
prevailing on the transaction dates, in which case income and expenses are translated at
the dates of the transactions); and
all resulting exchange differences are recognised as a separate component of equity.
On consolidation, exchange differences arising from the translation of any net investment in foreign
entities are taken to foreign currency translation reserve.
When a foreign operation is sold or any borrowings forming part of the net investment are repaid, a
proportionate share of such exchange differences are recognised in profit or loss, as part of the gain
or loss on sale where applicable.
Impairment of non-financial assets
(g)
The Group assesses at each reporting date whether there is an indication that an asset may be
impaired. If any such indication exists, or when annual impairment testing for an asset is required,
the Group makes an estimate of the asset’s recoverable amount. An asset’s recoverable amount is
the higher of its fair value less costs to sell and its value in use and is determined for an individual
asset, unless the asset does not generate cash inflows that are largely independent of those from
other assets of the Group and the asset's value in use cannot be estimated to be close to its fair
value. In such cases the asset is tested for impairment as part of the cash generating unit to which
it belongs. When the carrying amount of an asset or cash-generating unit exceeds its recoverable
amount, the asset or cash-generating unit is considered impaired and is written down to its
recoverable amount.
In assessing value in use, the estimated future cash flows are discounted to their present value
using a pre-tax discount rate that reflects current market assessments of the time value of money
and the risks specific to the asset. Impairment losses relating to continuing operations are
recognised in the statement of comprehensive income.
An assessment is also made at each reporting date as to whether there is any indication that
previously recognised impairment losses may no longer exist or may have decreased. If such
indication exists, the recoverable amount is estimated. A previously recognised impairment loss is
reversed only if there has been a change in the estimates used to determine the asset’s recoverable
amount since the last impairment loss was recognised. If that is the case the carrying amount of
the asset is increased to its recoverable amount. That increased amount cannot exceed the carrying
amount that would have been determined, net of depreciation, had no impairment loss been
recognised for the asset in prior years. Such reversal is recognised in profit or loss.
After such a reversal, the depreciation charge is adjusted in future periods to allocate the asset’s
revised carrying amount, less any residual value, on a systematic basis over its remaining useful
life.
34
LINDIAN RESOURCES LTD
DIRECTOR’S DECLARATION
For the year ended 30 June 2021
Deferred exploration and evaluation expenditure
(h)
Exploration and evaluation expenditure incurred by or on behalf of the Group is accumulated
separately for each area of interest. Such expenditure comprises net direct costs and an appropriate
portion of related overhead expenditure but does not include general overheads or administrative
expenditure not having a specific nexus with a particular area of interest.
Each area of interest is limited to a size related to a known or probable mineral resource capable of
supporting a mining operation.
Exploration and evaluation expenditure for each area of interest is carried forward as an asset
provided that one of the following conditions is met:
such costs are expected to be recouped through successful development and exploitation
of the area of interest or, alternatively, by its sale; or
exploration and evaluation activities in the area of interest have not yet reached a stage
which permits a reasonable assessment of the existence or otherwise of economically
recoverable reserves, and active and significant operations in relation to the area are
continuing.
Expenditure which fails to meet the conditions outlined above is written off. Furthermore, the
Directors regularly review the carrying value of exploration and evaluation expenditure and make
write downs if the values are not expected to be recoverable.
Identifiable exploration assets acquired are recognised as assets at their cost of acquisition, as
determined by the requirements of AASB 6 Exploration for and Evaluation of Mineral Resources.
Exploration assets acquired are reassessed on a regular basis and these costs are carried forward
provided that at least one of the conditions referred to in AASB 6 is met.
Exploration and evaluation expenditure incurred subsequent to acquisition in respect of an
exploration asset acquired, is accounted for in accordance with the policy outlined above for
exploration expenditure incurred by or on behalf of the entity.
Acquired exploration assets are not written down below acquisition cost until such time as the
acquisition cost is not expected to be recovered.
When an area of interest is abandoned, any expenditure carried forward in respect of that area is
written off.
Expenditure is not carried forward in respect of any area of interest/mineral resource unless the
Group’s rights of tenure to that area of interest are current.
Trade and other receivables
(i)
Trade receivables, which generally have 30 – 90 day terms, are recognised and carried at original
invoice amount less an allowance for any uncollectible amounts.
The Group measures the loss allowance for trade and other receivables at an amount equal to
lifetime expected credit loss. The expected credit losses on trade and other receivables are
estimated with reference to past default experience of the debtor and an analysis of the debtor’s
current financial position, adjusted for factors that are specific to the debtor, general economic
conditions of the industry in which the debtor operates and an assessment of both the current and
the forecast direction of conditions at the reporting date.
The Group writes off a trade receivable when there is information indicating that the debtor is in
severe financial difficulty and there is no realistic prospect of recovery; for example, when the debtor
has been placed under liquidation or has entered into bankruptcy proceedings, or when the trade
receivables are over two years past due, whichever occurs earlier.
Bad debts are written off when identified.
35
LINDIAN RESOURCES LTD
DIRECTOR’S DECLARATION
For the year ended 30 June 2021
Cash and cash equivalents
(j)
Cash and cash equivalent in the statement of financial position include cash on hand, deposits held
at call with banks and other short term highly liquid investments with original maturities of three
months or less. Bank overdrafts are shown as current liabilities in the statement of financial
position. For the purpose of the statement of cash flows, cash and cash equivalents consist of cash
and cash equivalents as described above and bank overdrafts.
Property, plant & equipment
(k)
Each asset of property, plant and equipment is carried at cost, less where applicable, any
accumulated depreciation and impairment losses. Plant and equipment are measured on the cost
basis less depreciation and impairment losses.
Plant and equipment
Plant and Equipment is shown at cost less subsequent depreciation for plant and equipment.
Depreciation
Items of plant and equipment are depreciated using the diminishing value method over their
estimated useful lives to the consolidated entity. The depreciation rates used for this class of asset
for the current period is as follows:
•
Plant and Equipment
20%
Assets are depreciated from the date the asset is ready for use. The assets’ residual values and
useful lives are reviewed, and adjusted if appropriate, at each reporting 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. The recoverable amount is assessed on the basis of
expected net cash flows that will be received from the assets continual use or subsequent disposal.
The expected cash flows have been discounted to their present value in determining the recoverable
amount. Gains and losses on disposals are determined by comparing proceeds with the carrying
amount. These gains and losses are included in the consolidated statement of profit or loss and
other comprehensive income. When re-valued assets are sold, amounts included in the revaluation
reserve relating to that asset are transferred to accumulated losses.
Provisions
(l)
Provisions are recognised when the Group has a present obligation (legal or constructive) as a result
of a past event, it is probable that an outflow of resources embodying economic benefits will be
required to settle the obligation and a reliable estimate can be made of the amount of the obligation.
Where the Group expects some or all of a provision to be reimbursed, for example under an insurance
contract, the reimbursement is recognised as a separate asset but only when the reimbursement is
virtually certain. The expense relating to any provision is presented in the statement of
comprehensive income net of any reimbursement.
If the effect of the time value of money is material, provisions are determined by discounting the
expected future cash flows at a pre-tax rate that reflects current market assessments of the time
value of money, and where appropriate, the risks specific to the liability.
Where discounting is used, the increase in the provision due to the passage of time is recognised
as a finance cost.
Trade and other payables
(m)
Liabilities for trade creditors and other amounts are measured at amortised cost, which is the fair
value of the consideration to be paid in the future for goods and services received that are unpaid,
whether or not billed to the Group.
Income tax
(n)
Deferred income tax is provided for on all temporary differences at balance date between the tax
base of assets and liabilities and their carrying amounts for financial reporting purposes.
36
LINDIAN RESOURCES LTD
DIRECTOR’S DECLARATION
For the year ended 30 June 2021
No deferred income tax will be recognised from the initial recognition of goodwill or of an asset or
liability, excluding a business combination, where there is no effect on accounting or taxable profit
or loss.
No deferred income tax will be recognised in respect of temporary differences associated with
investments in subsidiaries if the timing of the reversal of the temporary difference can be
controlled and it is probable that the temporary differences will not reverse in the near future.
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 charged or credited in the statement of comprehensive
income except where it relates to items that may be charged or credited directly to equity, in which
case the deferred tax is adjusted directly against equity.
Deferred income tax assets are recognised for all deductible temporary differences, carry forward of
unused tax assets and unused tax losses 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 tax
rates (and tax laws) that have been enacted or substantially enacted at the balance date and the
anticipation that the Group will derive sufficient future assessable income to enable the benefit to
be realised and comply with the conditions of deductibility imposed by the law.
The carrying amount of deferred tax assets is reviewed at each balance date and only recognised to
the extent that sufficient future assessable income is expected to be obtained.
Income taxes relating to items recognised directly in equity are recognised in equity and not in the
statement of comprehensive income.
Deferred tax assets and deferred tax liabilities are offset only if a legally enforceable right exists to
set off current tax assets against current tax liabilities and the deferred tax assets and liabilities
relate to the same taxable entity and the same taxation authority.
Issued capital
(o)
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new
shares or options are shown in equity as a deduction, net of tax, from the proceeds.
Revenue
(p)
Revenue is recognised to the extent that control of the goods or services has passed and it is
probable that the economic benefits will flow to the Group and the revenue is capable of being
reliably measured. The following specific recognition criteria must also be met before revenue is
recognised:
Interest income
Revenue is recognised as the interest accrues (using the effective interest method, which is the rate
that exactly discounts estimated future cash receipts through the expected life of the financial
instrument) to the net carrying amount of the financial asset.
Segment information
(q)
Operating segments are reported in a manner consistent with the internal reporting provided to the
chief operating decision maker. The chief operating decision maker, who is responsible for
allocating resources and assessing performance of the operating segments, has been identified as
the Board of Directors of Lindian Resources Limited.
(r)
Earnings per share
Basic earnings/loss per share
Basic earnings/loss per share is calculated by dividing the profit or loss attributable to equity
holders of the Company, excluding any costs of servicing equity other than dividends, by the
weighted average number of ordinary shares, adjusted for any bonus elements.
37
LINDIAN RESOURCES LTD
DIRECTOR’S DECLARATION
For the year ended 30 June 2021
Diluted earnings/loss per share
Diluted earnings/loss per share is calculated as net profit or loss attributable to members of the
Company, adjusted for:
the costs of servicing equity (other than dividends);
the after tax effect of dividends and interest associated with dilutive potential ordinary
shares that have been recognised as expenses; and
other non-discretionary changes in revenues or expenses during the period that would result
from the dilution of potential ordinary shares;
divided by the weighted average number of ordinary shares and dilutive potential ordinary shares,
adjusted for any bonus elements.
Goods and services tax (“GST”)
(s)
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.
The net amount of GST recoverable from, or payable to, the Australian Tax Office is included as part
of receivables or payables in the statement of financial position.
Cash flows are presented in the statement of cash flows on a gross basis, except for the GST
component of investing and financing activities, which are disclosed as operating cash flows.
Share based payment transactions
(t)
The Group provides benefits to individuals acting as, and providing services similar to employees
(including Directors) of the Group in the form of share based payment transactions, whereby
individuals render services in exchange for shares or rights over shares (“Equity Settled
Transactions”).
There is currently an Employee Share Option Plan (ESOP) in place, which provides benefits to
Directors and individuals providing services similar to those provided by an employee.
The cost of these equity settled transactions with employees is measured by reference to the fair
value at the date at which they are granted. The fair value is determined by using the Black Scholes
formula, taking into account the terms and conditions upon which the instruments were granted.
In valuing equity settled transactions, no account is taken of any performance conditions, other than
conditions linked to the price of the shares of Lindian Resources Limited (“Market Conditions”).
The cost of the equity settled transactions is recognised, together with a corresponding increase in
equity, over the period in which the performance conditions are fulfilled, ending on the date on which
the relevant employees become fully entitled to the award (“Vesting date”).
The cumulative expense recognised for equity settled transactions at each reporting date until
Vesting Date reflects (i) the extent to which the vesting period has expired and (ii) the number of
awards that, in the opinion of the Directors of the Group, will ultimately vest. This opinion is formed
based on the best available information at balance date. No adjustment is made for the likelihood
of the market performance conditions being met as the effect of these conditions is included in the
determination of fair value at grant date. The statement of comprehensive income charge or credit
for a period represents the movement in cumulative expense recognised at the beginning and end
of the period. No expense is recognised for awards that do not vest, except for awards where vesting
is conditional upon a market condition.
Where the terms of an equity settled award are modified, as a minimum an expense is recognised
as if the terms had not been modified. In addition, an expense is recognised for any increase in the
value of the transaction as a result of the modification, as measured at the date of the modification.
38
LINDIAN RESOURCES LTD
DIRECTOR’S DECLARATION
For the year ended 30 June 2021
Where an equity settled award is cancelled, it is treated as if it had vested on the date of the
cancellation, and any expense not yet recognised for the award is recognised immediately. However,
if a new award is substituted for the cancelled award, and designated as a replacement award on
the date that it is granted, the cancelled and new award are treated as if they were a modification of
the original award, as described in the previous paragraph.
The cost of equity-settled transactions with non-employees is measured by reference to the fair
value of goods and services received unless this cannot be measured reliably, in which case the cost
is measured by reference to the fair value of the equity instruments granted.
Comparative figures
(u)
When required by Accounting Standards, comparatives have been adjusted to conform to changes
in presentation for the current financial year.
Fair value measurement
(v)
When an asset or liability, financial or non-financial, is measured at fair value for recognition or
disclosure purposes, the fair value is based on the price that would be received to sell an asset or
paid to transfer a liability in an orderly transaction between market participants at the
measurement date; and assumes that the transaction will take place either: in the principle market;
or in the absence of a principal market, in the most advantageous market.
Fair value is measured using the assumptions that market participants would use when pricing the
asset or liability, assuming they act in their economic best interest. For non-financial assets, the fair
value measurement is based on its highest and best use. Valuation techniques that are appropriate
in the circumstances and for which sufficient data are available to measure fair value, are used,
maximising the use of relevant observable inputs and minimising the use of unobservable inputs.
Assets and liabilities measured at fair value are classified, into three levels, using a fair value
hierarchy that reflects the significance of the inputs used in making the measurements.
Classifications are reviewed each reporting date and transfers between levels are determined based
on a reassessment of the lowest level input that is significant to the fair value measurement.
For recurring and non-recurring fair value measurements, external valuers may be used when
internal expertise is either not available or when the valuation is deemed to be significant. External
valuers are selected based on market knowledge and reputation. Where there is a significant change
in fair value of an asset or liability from one period to another, an analysis is undertaken, which
includes a verification of the major inputs applied in the latest valuation and a comparison, where
applicable, with external sources of data.
Critical accounting estimates and judgements
(w)
Estimates and judgements are continually evaluated and are based on historical experience and
other factors, including expectations of future events that may have a financial impact on the entity
and that are believed to be reasonable under the circumstances.
The Group makes estimates and assumptions concerning the future. The resulting accounting
estimates will, by definition, seldom equal the related actual results. The estimates and
assumptions that have a significant risk of causing a material adjustment to the carrying amounts
of assets and liabilities within the next financial year are discussed below.
Capitalised exploration and evaluation expenditure
The future recoverability of capitalised exploration and evaluation expenditure is dependent on a
number of factors, including whether the Group decides to exploit the related lease itself or, if not,
whether it successfully recovers the related exploration and evaluation asset through sale.
Factors which could impact the future recoverability include the level of proved, probable and
inferred mineral resources, future technological changes which could impact the cost of mining,
future legal changes (including changes to environmental restoration obligations) and changes to
commodity prices.
39
LINDIAN RESOURCES LTD
DIRECTOR’S DECLARATION
For the year ended 30 June 2021
To the extent that capitalised exploration and evaluation expenditure is determined not to be
recoverable in the future, this will reduce profits and net assets in the period in which this
determination is made. In addition, exploration and evaluation expenditure is capitalised if
activities in the area of interest have not yet reached a stage which permits a reasonable
assessment of the existence or otherwise of economically recoverable reserves.
To the extent that it is determined in the future that this capitalised expenditure should be written
off, this will reduce profits and net assets in the period in which this determination is made.
Share based payment transactions
The Group measures the cost of equity settled transactions with employees or external parties
subject to certain criteria, by reference to the fair value of the equity instruments at the date at which
they are granted. The fair value is determined by using the Black Scholes formula, taking into
account the terms and conditions upon which the instruments were granted.
Borrowings
(x)
Borrowings are presented as current liabilities unless the Group has an unconditional right to defer
settlement for at least 12 months after the balance sheet date. Borrowings are initially recognised at
fair value (net of transaction costs) and subsequently carried at amortised cost. Any difference
between the proceeds (net of transaction costs) and the redemption value is recognised in profit or
loss over the period of the borrowings using the effective interest method.
Business combinations
(y)
A business combination is a transaction or other event in which an acquirer obtains control of one
or more businesses and results in the consolidation of the assets and liabilities acquired. Business
combinations are accounted for by applying the acquisition method.
The consideration transferred is the sum of the acquisition-date fair values of the assets
transferred, equity instruments issues or liabilities incurred by the acquirer to former owners of the
acquiree. Deferred consideration payable is measured at its acquisition-date fair value. Contingent
consideration to be transferred by the acquirer is recognised at the acquisition-date fair value. At
each reporting date subsequent to the acquisition, contingent consideration payable is measured
at its fair value with any changes in the fair value recognised in profit or loss unless the contingent
consideration is classified as equity, in which case the contingent consideration is carried at its
acquisition-date fair value.
Goodwill is recognised initially at the excess of: (a) the aggregate of the consideration transferred,
the fair value of the non-controlling interest, and the acquisition date fair value of the acquirer’s
previously held equity interest (in case of step acquisition); over (b) the net fair value of the
identifiable assets acquired and liabilities assumed.
If the net fair value of the acquirer's interest in the identifiable assets acquired and liabilities
assumed is greater than the aggregate of the consideration transferred, the fair value of the
non-controlling interest, and the acquisition date fair value of the acquirer’s previously held equity
interest, the difference is immediately recognised as a gain in the profit or loss.
Acquisition related costs are expensed as incurred. When an asset acquisition does not constitute
a business combination, the assets and liabilities are assigned a carrying amount based on their
fair values in an asset purchase transaction and no deferred tax will arise in relation to the acquired
assets and assumed liabilities, as the initial recognition exemption for deferred tax under AASB 112
Income Taxes applies. No goodwill will arise on the acquisition.
40
LINDIAN RESOURCES LTD
DIRECTOR’S DECLARATION
For the year ended 30 June 2021
Segment Information
3.
AASB 8 Operating Segments requires operating segments to be identified on the basis of internal
reports about components of the Group that are regularly reviewed by the Chief Operating Decision
Maker in order to allocate resources to the segment and to assess its performance.
For management purposes, the Group is organised into one main operating segment, being
exploration of mineral projects and in four geographical areas, being Tanzania (gold and bauxite),
Guinea (bauxite), Malawi (rare earths elements) and Australia (corporate office).
30 June 2021
Revenue
Interest income
Other income
Total segment revenue
Expenditure
Depreciation expense
Impairment of exploration
and evaluation assets
Finance costs
Other expenses
Total segment expenditure
Loss before income tax
SEGMENT ASSETS
Segment operating assets
Total segment assets
SEGMENT LIABILITIES
Segment operating liabilities
Total segment liabilities
Movement in non-current
assets
Tanzania
$
Guinea
$
Malawi
$
Australia
$
Total
$
-
-
-
-
53,838
-
120,508
174,346
(174,346)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
63
34,995
35,058
63
34,995
35,058
4,915
-
4,915
53,838
837
837
1,313,656
1,434,164
-
-
-
-
1,319,408
(1,284,350)
1,493,754
(1,458,696)
8,358
8,358
3,742,609
3,742,609
662,852
662,852
548,539
548,539
4,962,358
4,962,358
5,787
5,787
(30,741)
-
-
2,450,505
-
-
16,807
300,331
300,331
23,826
306,118
306,118
2,460,397
41
LINDIAN RESOURCES LTD
DIRECTOR’S DECLARATION
For the year ended 30 June 2021
Tanzania
$
Guinea
$
Malawi
$
Australia
$
Total
$
-
-
-
7,712
511,876
-
-
39,621
559,209
(559,209)
-
-
-
-
-
-
75,853
-
-
75,853
(75,853)
378
58,325
58,703
378
58,325
58,703
2,992
10,704
-
511,876
-
1,954
1,280,846
1,285,792
(1,227,089)
75,853
1,954
1,320,467
1,920,854
(1,862,151)
-
-
-
-
-
-
-
-
-
57,243
57,243
1,292,104
1,292,104
646,045
646,045
646,152
646,152
2,641,544
2,641,544
Tanzania
$
Guinea
$
Malawi
$
Australia
$
Total
$
6,292
6,292
-
-
-
-
120,802
120,802
127,094
127,094
(453,756)
1,292,104
60,389
(2,991)
895,746
30 June 2020
Revenue
Interest income
Other income
Total segment revenue
Expenditure
Depreciation expense
Impairment of exploration
and evaluation assets
Exploration and evaluation
expenses
Finance costs
Other expenses
Total segment expenditure
Loss before income tax
SEGMENT ASSETS
Segment operating assets
Total segment assets
30 June 2020
SEGMENT LIABILITIES
Segment operating
liabilities
Total segment liabilities
Movement in non-current
assets
4.
Other Expenses
Accounting, audit and tax fees
Insurance
Legal fees
Listing and share registry costs
Travel
Printing and Stationery
Marketing and corporate advisor fees
Salary and superannuation
Other
Total other expenses
2021
$
226,239
35,290
93,618
49,037
2,393
2,328
132,202
84,679
478,076
1,103,862
2020
$
118,496
33,152
10,821
38,644
37,120
-
210,649
270,283
127,253
846,418
42
LINDIAN RESOURCES LTD
DIRECTOR’S DECLARATION
For the year ended 30 June 2021
Income Tax
5.
Income tax expense
Major component of tax expense/(benefit) for the
year:
Current tax
Deferred tax
2021
Nil $
2020
Nil $
-
-
-
-
-
-
Numerical reconciliation between aggregate tax expense recognised in the statement of
comprehensive income and tax expense calculated per the statutory income tax rate.
2021
$
2020
$
A reconciliation between tax expense and the product of
accounting loss before income tax multiplied by the
Group’s applicable tax rate is as follows:
Total loss before income tax expense
(1,458,696)
(1,862,151)
Tax at the group rate of 30% (2020: 30%)
Non-deductible expenses
Non-assessable income
Movement in unrecognised temporary differences
Debt equity raising costs
Adjustment in respect of prior years
Income tax benefit not brought to account
Income tax benefit
Unrecognised deferred tax balances:
The following deferred tax assets and liabilities
have not been brought to account:
Deferred tax assets
Losses available for offset against future taxable
income - revenue
Other deferred tax balances
2021
$
(437,609)
339,930
-
(588,975)
-
-
686,654
-
2020
$
(558,646)
116,776
(17,498)
117,157
(18,703)
402
360,512
-
4,784,460
137,442
4,921,902
4,425,116
662,265
5,087,381
The benefit for tax losses will only be obtained if:
(i) the Group derives future assessable income in Australia of a nature and of an amount
sufficient to enable the benefit from the deductions for the losses to be realised;
(ii) the Group continues to comply with the conditions for deductibility imposed by tax
legislation in Australia; and
(iii) no changes in tax legislation in Australia, adversely affect the Group in realising the benefit
from the deductions for the losses
43
LINDIAN RESOURCES LTD
DIRECTOR’S DECLARATION
For the year ended 30 June 2021
6.
Cash and Cash Equivalents
Reconciliation of operating loss after tax to the
net cash flows from operations:
Loss after tax
Non-cash items
Depreciation and impairment charges
Foreign currency (gain)/loss
Share based payments
Impairment of exploration and evaluation assets
Change in assets and liabilities
Trade and other receivables
Trade and other payables
Provisions
Net cash outflow from operating activities
Reconciliation of cash:
Cash at bank
2021
$
2020
$
(1,458,696)
(1,862,151)
4,915
31,668
-
53,838
26,246
123,307
-
(1,218,722)
10,704
4,311
336,464
511,876
(5,750)
(143,549)
(749)
(1,148,844)
2021
$
2020
$
500,761
500,761
614,098
614,098
Cash at bank earns interest at floating rates based on daily bank deposit rates.
7.
Trade and Other Receivables - Current
GST receivable
Other receivable
2021
$
9,660
966
10,626
2020
$
14,355
25,687
40,042
Goods and services tax is non-interest bearing and generally receivable on 30 day terms. They are
neither past due nor impaired. The amount is fully collectible. Due to the short-term nature of these
receivables, their carrying value is assumed to approximate their fair value.
8.
Prepayments
Prepaid expenditure
2021
$
21,677
21,677
2020
$
18,507
18,507
44
LINDIAN RESOURCES LTD
DIRECTOR’S DECLARATION
For the year ended 30 June 2021
9.
Deferred Exploration and Evaluation Expenditure
Exploration and evaluation phase – at cost
At beginning of the year
Exploration expenditure during the year settled by
cash
Exploration expenditure during the year settled by
issue of shares and options (refer Note 26)
Exploration acquired – Lelouma Bauxite Project
(refer Note 18)
Exploration acquired – Woula Bauxite Project
(refer Note 18)
Impairment expense1
Foreign exchange movement
Total exploration and evaluation
2021
$
2020
$
1,938,156
1,031,706
573,820
1,298,326
-
120,000
1,070,846
782,728
(53,838)
8,220
4,319,932
-
-
(511,876)
-
1,938,156
The deferred exploration and evaluation expenditure consists of expenditure on the Group’s
Kangankunde Rare Earths Project in Malawi and the Gaoual, Lelouma and Woula Bauxite Projects in
Guinea. The recoupment of costs carried forward in relation to areas of interest in the exploration
and evaluation phases is dependent on the successful development and commercial exploitation
or sale of respective areas. The ongoing legal issues with Michael Saner and Rift Valley Resources
outlined in Note 30 gives rise to a material uncertainty on the recoverability of the Kangankunde
Rare Earths Project in Malawi.
1 The impairment expense for the year ended 30 June 2021 of $53,838 relates to the Group’s Hapa
Gold Projects in Tanzania as the Group is now focussed on the Bauxite Projects in Guinea. The
impairment expense in the prior year ended 30 June 2020 of $511,876 relates to the expenditure on
the Groups Lushoto Bauxite Project in Tanzania.
10.
Plant and Equipment
Plant and equipment – at cost
Accumulated depreciation
Net book amount
Balance at the beginning of the year
Acquisitions
Immediate write-off
Depreciation expense
Balance at the end of the year
2021
$
138,536
(29,174)
109,362
30,741
83,536
-
(4,915)
109,362
2020
$
55,000
(24,259)
30,741
41,445
-
(3,039)
(7,665)
30,741
45
LINDIAN RESOURCES LTD
DIRECTOR’S DECLARATION
For the year ended 30 June 2021
11.
Trade and Other Payables
Trade payables and accruals
2021
$
306,118
306,118
2020
$
104,639
104,639
Trade creditors, other creditors and goods and services tax are non-interest bearing and generally
payable on 30-day terms. Due to the short-term nature of these payable, their carrying value is
assumed to approximate their fair value.
12.
Unearned Income
Cashflow boost
2021
$
-
-
2020
$
11,665
11,665
Unearned income consists of the July component of the cashflow boost included on the June 2020
Business Activity Statement. The cashflow boost is a temporary injection of capital from the
Australian Government to support small land medium businesses during the economic downturn
associated with COVID-19.
13.
Provisions
Employee entitlements
14.
Borrowings
Short term debt
Balance at the beginning of the year
Drawdown on Insurance Premium Funding
Interest Insurance Premium Funding
Repayment of borrowings
Repayment of finance charges
Balance at the end of the year
2021
$
-
-
2021
$
10,790
-
-
(10,790)
-
-
2020
$
-
-
2020
$
165,000
38,757
(2,791)
(175,176)
(15,000)
10,790
46
LINDIAN RESOURCES LTD
DIRECTOR’S DECLARATION
For the year ended 30 June 2021
Reconciliation of changes in liabilities from financing activities
Balance at the beginning of the year
Non-cash repayment of debt
Changes in liabilities from operating activities
Finance costs
Changes in liabilities from financing activities
Proceeds from borrowings
Repayment of borrowings
Balance at the end of the year
2021
$
10,790
-
2020
$
165,000
(165,000)
-
-
-
(10,790)
-
35,966
(25,176)
10,790
On 1 April 2019, the Company announced that it had entered into an unsecured $1M loan facility with
Rose Lawn Limited for a 12-month term. The lender is entitled to a 6% fee payable upon receipt of
each draw down and 110% of the loan amount is repayable on maturity. During the year ended 30
June 2019 $150,000 was drawn under this facility and on 2 August 2019 was repaid by way of a share
issue.
On 3 December 2019, the Company entered into an Insurance Premium Funding Agreement with
IQumulate Premium Funding for a principal balance of $35,966, interest is charged at a flat rate of
7.7607% on the funded amount and payments are made in equal instalments over a 10 month period.
15.
Share Capital
a) Share capital
Ordinary shares fully paid
b) Movement in shares on issue
Balance at the beginning of the year
Shares issued – placement November
2020
Issue of shares as part of consideration
for Woula Bauxite Project (refer Note 18)
Issue of shares in consideration for
Lelouma Bauxite Project (refer Note 18)
Shares issued – placement August 2019
Shares issued – placement November
2019
Issue of shares for acquisition of Batan
Australia Pty Ltd (i)
Issue of share in settlement of short-
term debt
Issue of shares as part consideration for
the Guinea Bauxite Acquisition
Exercise of options
Less fundraising costs
Balance at the end of the year
2021
$
2020
$
35,450,160
35,450,160
32,424,788
32,424,788
2021
number
2021
$
2020
number
2020
$
581,949,624
32,424,788 377,812,124
29,126,329
61,349,694
1,000,000
12,269,939
245,399
30,674,847
-
613,497
-
-
-
-
-
70,937,500
1,135,000
-
-
-
-
61,691,667
-
747,935,771
- 31,250,000
500,000
-
-
10,000,000
-
10,312,500
165,000
-
1,233,833
(67,357)
105,000
1,532,750
(139,291)
35,450,160 581,949,624 32,424,788
5,000,000
76,637,500
-
47
LINDIAN RESOURCES LTD
DIRECTOR’S DECLARATION
For the year ended 30 June 2021
(i) Shareholder approval was granted to issue of 10,000,000 shares to the vendors of the Lushoto
Bauxite Project for the completion of the 51% Stage 1 acquisition of Batan Australia Pty Ltd which in
turn owns 100% of East Africa Bauxite Limited, holder of the Lushoto and Pare Bauxite Projects (refer
to ASX announcements dated 3 August 2017, 11 January 2018, 8 October 2018 and 20 March 2019 for
further detail). The shares to be issued for the Stage 1 acquisition were previously approved by
shareholders in November 2018. This approval had expired and accordingly shareholder “re-
approval” was sought at the shareholder meeting and the shares were issued on 22 November 2019.
c) Ordinary shares
Ordinary shares have the right to receive dividends as declared and, in the event of winding up the
Company, to participate in the proceeds from 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 proxy, at a meeting of the Company.
d) Capital risk management
The Group’s capital comprises share capital, reserves less accumulated losses amounting to a
surplus of $4,656,240 at 30 June 2021 (2020: surplus of $2,514,450). The Group manages its capital
to ensure its ability to continue as a going concern and to optimise returns to its shareholders. The
Group was geared to the extent indicated in Note 14 at the financial year end and not subject to any
externally imposed capital requirements.
As at the date of this report, there were 110,887,347 unissued ordinary shares under options. The
details of the options at the date of this report are as follows:
Number
Exercise Price $
Expiry Date
30,674,847
80,212,500
0.032
0.02
28 September 2023
20 November 2022
No option holder has any right under the options to participate in any other share issue of the
company or any other entity.
A total of 30,674,847 (2020: 133,875,000) options were issued during the year, 61,691,667 options were
exercised (2020: 76,637,500) during the year and 80,333,334 options expired (2020: nil) during the
year.
e) Share options
At 30 June 2021, there were 110,887,347 unissued ordinary shares under option (2020: 222,237,501
options).
The details of the options are as follows:
Number
Exercise $
Expiry
30,674,847
80,212,500
0.032
0.02
28 September 2023
20 November 2022
48
LINDIAN RESOURCES LTD
DIRECTOR’S DECLARATION
For the year ended 30 June 2021
The movement in options is set out below.
At beginning of period
Options expired
Options issued – free attaching options for
placement
Options issued – capital raising fee
Options issued – MD for Gaoual Bauxite
Options issued – corporate advisor services
Options issued – consideration for consultancy
fee
Options – previous director (now lapsed)
Options exercised during the period
At end of period
f) Performance shares & rights
2021
number
2020
number
222,237,501
(70,333,334)
30,674,847
-
-
-
-
(10,000,000)
(61,691,667)
110,887,347
165,000,001
-
81,250,000
15,625,000
20,000,000
2,000,000
5,000,000
10,000,000
(76,637,500)
222,237,501
At 30 June 2021, there were 30,000,000 performance rights on issue (2020: 55,000,000 performance
shares and rights).
The details of the performance shares are as follows:
Number
Expiry
Vesting conditions
12,500,000
months
24
after
Completion as defined in
the 2019 Notice of Annual
General Meeting
17,500,000
months
24
after
Completion of the Guinea
Bauxite Agreement as
defined in the 2019 Notice
of
General
Meeting
Annual
Conditional on
identifying and
the Company
establishing an initial JORC Code compliant resource
containing a minimum of 65million tonnes with an
average grade greater than 45% AI203 with less than
5% SI02 reactive silica being defined in relation to the
Gaoual Bauxite Project and announced on ASX.
Conditional on the Company completing a Preliminary
Feasibility Study in relation to the Gaoual Bauxite
Project.
The movement in performance shares and rights are set out below. No performance rights vested
during the period.
2021
$
2020
$
At beginning of period – Class B Performance shares
25,000,000
25,000,000
At beginning of period – Performance Rights
Performance shares expired – Class B (expired 6
December 2020)
Performance Rights – Stage 1 and Stage 2
At end of period
30,000,000
-
(25,000,000)
-
30,000,000
-
30,000,000
55,000,000
Each Performance Right converts into 1 share for nil consideration. Both Milestones expire 24
months after Completion of the Guinea Bauxite Agreement.
49
LINDIAN RESOURCES LTD
DIRECTOR’S DECLARATION
For the year ended 30 June 2021
The Performance Rights have been issued, following shareholder approval, however the parties to
the agreement for Lindian to earn an initial 51% interest in the Gaoual Bauxite Project have not yet
agreed that the condition precedent to spend US$1 million on the Project has been met. Upon
achieving this agreement, Lindian will acquire a 51% controlling interest in Guinea Bauxite Pty
Limited (currently a third party to the Group). As at the date of acquiring the 51% interest, the Group
must spend a further US$2 million within 2 years in order to earn a cumulative 75% interest.
No value has been assigned to the performance rights as achievement of the vesting conditions has
not been deemed probable, at the date of this report given the issue of such rights (albeit issued) is
contingent on the acquisition of the beforementioned interests (2020: nil).
16.
Reserves
Share based payments reserve
Option reserve
Foreign currency translation reserve
Movement in reserves
Share based payments reserve
Balance at the beginning of the year
Recognition of share-based payments for options issued
for / to
Consultancy fees
Managing Director
Exploration Geologist
Balance at the end of the year
2021
$
5,609,570
4,106,626
20,085
9,736,281
2020
$
5,609,570
4,106,626
1,270
9,717,466
2021
$
2020
$
5,609,570
5,273,106
-
-
-
5,609,570
72,702
231,402
32,360
5,609,570
The share-based payment reserve is used to record the fair value of options issued.
Option reserve
Balance at the beginning of the year
Balance at the end of the year
2021
$
2020
$
4,106,626
4,106,626
4,106,626
4,106,626
The option reserve is used to record the premium paid on the issue of listed options.
50
LINDIAN RESOURCES LTD
DIRECTOR’S DECLARATION
For the year ended 30 June 2021
Foreign currency translation reserve
Balance at the beginning of the year
Exchange difference on translation of foreign
operation attributable to owners of Lindian
Resources Limited
Balance at the end of the year
2021
$
1,270
18,815
20,085
2020
$
(1,185)
2,455
1,270
The foreign currency translation reserve is used to record exchange differences arising on
translation of foreign controlled entities. The reserve is recognised in profit and loss when the net
investment is disposed of.
17.
Accumulated Losses
At beginning of the year
Loss for the year attributable to owners of Lindian
Resources Limited
Balance at the end of the year
18.
Asset Acquisitions
2021
$
2020
$
39,534,368
37,737,767
1,394,867
1,796,601
40,929,235
39,534,368
On 26 November 2020, the Company completed the Lelouma Project acquisition via acquisition
of 75% of Bauxite Holdings Limited (formerly Sarmin Bauxite Limited) a private company that holds
the rights for the Lelouma Bauxite Project via its 100% owned subsidiary Lelouma Bauxite Guinea
SARL (formerly Sarmin Bauxite Guinea SARL), located in the Republic of Guinea.
The Company issued 30,674,847 fully paid ordinary shares with a fair value of 2 cents per share to
two of Lelouma’s existing shareholders, Sarmin Mining Inc. (or nominee) (19,598,160 shares)
and Kanberra Resources Limited (or nominee) (11,076,687 shares) following shareholder approval
granted at the Company’s 20 November 2020 Annual General Meeting.
Non-cash consideration of 19,598,160 shares issued to Sarmin Mining Inc.
Non-cash consideration of 11,076,687 shares issued to Kanberra Resources Limited
Add: Transaction costs
Total purchase consideration
$
391,963
221,534
80,079
693,576
51
LINDIAN RESOURCES LTD
DIRECTOR’S DECLARATION
For the year ended 30 June 2021
Assets and liabilities acquired
The purchase price has been allocated to the fair value of the assets and liabilities acquired as
follows:
Assets and liabilities held at acquisition date:
- Exploration and evaluation
- Prepayments
- Cash and cash equivalents
- Reimbursement – Sarmin Mining Inc (vendor related entity)
- Accounts payable and accruals
- Non-controlling interest
Net identifiable assets acquired
Total purchase consideration
Woula Bauxite Project
Recognised
on
acquisition at
fair value
$
1,070,846
52,183
3,503
(57,429)
(144,337)
(231,190)
693,576
693,576
("Woula"); Entreprise Generale D’Entretien &
On 16 December 2020, Lindian completed its agreement with Asena Holdings Pte Ltd (“Asena”) to
acquire the rights Asena has under a binding term sheet entered into with Woula Natural Resources
SARL
and
Mr Lancinet Dabo (“Dabo”), to acquire up to 61% of the issued capital in Woula (the entity that holds
the Woula Bauxite Project) in return for making a series of staggered cash payments over nine
months totalling US$150,000 to the existing shareholders of Woula (the “Transaction”). In exchange
for the novation of rights under the agreement, Asena received 12,269,939 Lindian Shares
(Consideration Shares). The terms of the agreement also envisages Lindian being able to increase
its interest in Woula to 75% if it elects to sole fund the completion of a JORC defined Scoping Study
for the Woula Bauxite Project, and that scoping study is completed within 18 months of acquiring
its initial 61% interest in Woula.
Construction
(“EGEC”),
Non-cash consideration of 12,269,939 shares issued to Asena
Cash consideration (US$150,000)1
Add: Transaction costs
$
245,399
196,980
35,085
Total purchase consideration
1As at 30 June 2021, US$100,000 had been paid with the remaining A$66,507 accrued at balance
date.
477,464
Assets and liabilities acquired
The purchase price has been allocated to the fair value of the assets and liabilities acquired as
follows:
52
LINDIAN RESOURCES LTD
DIRECTOR’S DECLARATION
For the year ended 30 June 2021
Assets and liabilities held at acquisition date:
- Exploration and evaluation
- Non-controlling interest
Net identifiable assets acquired
Total purchase consideration
Recognised on
acquisition at fair
value
$
782,728
(305,264)
477,464
477,464
Non-controlling Interests
19.
The Group’s material non-controlling interests comprise a 49% non-controlling interest in Batan
Australia Pty Ltd, a 39% non-controlling interest in Woula Natural Resources SARL and a 25% non-
controlling interest in Sarmin Bauxite Limited.
Opening balance
Loss allocated to non-controlling interest
Other comprehensive loss allocated to non-
controlling interest
Non-controlling interest on acquisition
Closing balance
2021
$
(93,436)
(63,829)
19,845
536,454
399,034
2020
$
(29,741)
(65,550)
1,855
-
(93,436)
Investments in Subsidiaries
The consolidated financial statements incorporate the assets, liabilities and results of the following
subsidiaries:
Country of
Incorporation
2021
%
2020
%
Australia
Cameroon
West African Exploration Pty Ltd
West African Exploration Cameroon
Pty Ltd
Tangold Pty Ltd
Hapa Gold Limited
Batan Australia Pty Ltd
East Africa Bauxite Limited
Lindian Guinea SARL4,7
Woula Natural Resources SARL3,8
Bauxite Holdings Limited2, 3
Lelouma Bauxite Guinea SARL3,5,6,9
Terminal Logistics & Holdings Pte Ltd3
Northern Rail Pte Ltd4
Australia
Tanzania
Australia
Tanzania
Guinea
Guinea
Mauritius
Guinea
Singapore
Singapore
1 Refer to note 18 for details of the acquisition of the subsidiaries.
2Formerly known as Sarmin Bauxite Limited.
3Asset acquisitions during the financial year, refer note 18.
4Wholly owned newly incorporated entities during the financial year.
100%
100%
100%
100%
51%1
51%1
100%
61%
75%
75%6
75%
100%
100%
100%
100%
100%
51%1
51%1
-
-
-
-
-
53
LINDIAN RESOURCES LTD
DIRECTOR’S DECLARATION
For the year ended 30 June 2021
5Formally known as Sarmin Bauxite Guinea SARL.
6100% owned by Bauxite Holdings Limited.
7Holds 61% interest in Woula Natural Resources SARL.
8Holds the Woula Bauxite Project
9Holds the Lelouma Bauxite Project
20.
Loss per Share
Loss attributable to owners of Lindian Resources
Limited used in calculating basic and dilutive EPS
2021
$
2020
$
(1,394,867)
(1,796,601)
2021
number
2020
number
Weighted average number of ordinary shares used
in calculating basic and diluted earnings / (loss)
per share (*):
666,472,904
518,611,524
* There is no impact from the unissued shares (options and performance rights) outstanding at 30
June 2021 on the loss per share calculation because they are antidilutive. These instruments could
potentially dilute basic EPS in the future. There have been no transactions involving ordinary shares
or potential ordinary shares that would significantly change the number of ordinary shares or
potential ordinary shares outstanding between the reporting date and the date of completion of
these financial statements.
Expenditure Commitments
21.
Exploration commitments contracted for at reporting date but not recognised as liabilities are as
follows:
Within one year
After one year but not longer than 5 years
2021
$
248,100
-
248,100
2020
$
378,497
1,400,000
1,778,497
Gaoual Bauxite Project (KB Bauxite Guinea SARL)
In the prior year, the Company entered into an exclusive option to acquire an initial 51% interest
(Stage 1 Interest) in the project through spending US$1 million over 2 years from Completion (Stage
1 End Date) with rights to move to 75%. The parties to the agreement for Lindian to earn an initial
51% interest in the Gaoual Bauxite Project have not yet agreed that the condition precedent to spend
US$1 million on the Project has been met. Upon achieving this agreement, Lindian will acquire a 51%
controlling interest in Guinea Bauxite Pty Limited (currently a third party to the Group). As at the
date of acquiring the 51% interest, the Group must spend a further US$2 million within 2 years in
order to earn a cumulative 75% interest. As at 30 June 2021, the Group has spent $1,508,190 (2020:
$1,187,104) on the Gaoual Bauxite Project.
Tanzanian Bauxite Projects (Batan Australia Pty Limited)
During the year ended 30 June 2019, the Group acquired a 51% interest in Batan Australia Pty Ltd
(“Batan”) pursuant to a Farm-in and Joint Venture Agreement (“the Joint Venture Agreement”) dated
20 March 2019 through spending $400,000 on the project. Batan owns 100% of East Africa Bauxite
Limited, holder of the tenements for the Lushoto and Pare Bauxite Projects in Tanzania. As at 30
June 2021, the Group has spent $506,746 (2020: $506,746) on the Tanzanian Bauxite Projects.
54
LINDIAN RESOURCES LTD
DIRECTOR’S DECLARATION
For the year ended 30 June 2021
The Group is required to spend a further $1,400,000 on the project tenements which includes
completion of a bankable Feasibility Study and issue 10 million shares at a deemed issue price of
$0.02 each to earn a further 24% interest in Batan (Stage 2 Interest). During the prior year the
Company announced its decision not to pursue the 75% Stage 2 interest and as per the agreement
the interest would revert to 49%. Subsequent to this the new management team requested an
extension of the notice period by 12 months, to enable a full and considered review of the project
prior to any decisions being made. On 29 December 2020, an extension was granted such that the
Group is required to give written notice, on or before 31 December 2022, to elect to continue to sole
fund the Project as described above to acquire the Stage 2 interest. If the Group choses not to elect
to sole fund the Project by proceeding to fund the Stage 2 farm in expenditure, Lindian may give
notice before 31 December 2022 to elect to dispose of its Stage 1 shareholders in existing proportion
to their then interests for a total consideration of $1 on the satisfaction of Lindian obtaining all
necessary regulatory and shareholder approvals.
Auditor’s Remuneration
22.
The auditor of Lindian Resources Limited is HLB Mann Judd (2020: HLB Mann Judd).
Amounts received or due and receivable by the
auditor for :
an audit or review of the financial report of the
entity and any other entity in the Group
2021
$
2020
$
38,127
38,127
31,948
31,948
23. Key Management Personnel Disclosures
The aggregate compensation made to Directors and other Key Management Personnel of the Group
is set out below:
Short term employee benefits
Share based payments
Post-employment benefits (superannuation)
Reimbursements
Total remuneration
2021
$
494,674
-
6,705
3,834
505,213
2020
$
414,480
231,402
21,850
-
667,732
The Group has liabilities of $78,883 for unpaid Key Management Personnel remuneration at 30 June
2021 (2020: $30,343).
24. Related Party Disclosures
The ultimate parent entity is Lindian Resources Limited. Refer to note 19 for list of all subsidiaries
within the Group.
There were no related party transactions to report on for the period.
55
LINDIAN RESOURCES LTD
DIRECTOR’S DECLARATION
For the year ended 30 June 2021
Financial Risk Management
25.
Exposure to interest rate, liquidity, and credit risk arises in the normal course of the Group’s
business. The Group does not hold or use derivative financial instruments. The totals for each
category of financial instruments, measured in accordance with AASB 9 as detailed in the
accounting policies to these financial statements, are as follows:
Financial Assets
Cash and cash equivalents
Trade and other receivables
Financial Liabilities
Trade and other payables
Unearned income
Short term debt
2021
$
2020
$
500,761
10,626
306,118
-
-
614,098
40,042
104,639
11,665
10,790
The fair value of financial assets and liabilities at balance date approximate their carrying values.
Financial Risk Management Policies
The board’s overall risk management strategy seeks to assist the consolidated group in meeting its
financial targets, while minimising potential adverse effects on financial performance. Its functions
include the review of future cash flow requirements.
Specific Financial Risk Exposure and Management
The main risks arising from the Group’s financial instruments are interest rate risk, credit risk and
liquidity risk.
a) Liquidity Risk
Liquidity risk is the risk that the Group will encounter difficulty in meeting obligations associated
with financial liabilities.
The Group manages liquidity risk by maintaining sufficient cash facilities to meet the operating
requirements of the business and investing excess funds in highly liquid short term investments.
The responsibility for liquidity risk management rests with the Board of Directors.
Alternatives for sourcing the Group’s future capital needs include the cash position and the issue of
equity instruments. These alternatives are evaluated to determine the optimal mix of capital
resources for our capital needs. We expect that, absent a material adverse change in a combination
of our sources of liquidity, present levels of liquidity along with future capital raisings will be
adequate to meet our expected capital needs.
Maturity analysis for financial liabilities
Financial liabilities of the Group comprise trade and other payables and borrowings. At 30 June 2021,
all trade and other payables and borrowings are expected to contractually mature within 30 days.
56
LINDIAN RESOURCES LTD
DIRECTOR’S DECLARATION
For the year ended 30 June 2021
b) Interest Rate Risk
Interest rate risk arises from the possibility that changes in interest rates will affect future cash
flows or the fair value of financial instruments.
The Group’s exposure to market risk for changes to interest rate risk relates primarily to its earnings
on cash and term deposits. The Group manages the risk by investing in short term deposits.
2021
$
2020
$
Cash and cash equivalents
500,761
614,098
At balance date the Group’s exposure to interest rate risk is not material.
c) Credit Risk Exposures
Credit risk represents the risk that the counterparty to the financial instrument will fail to discharge
an obligation and cause the Group to incur a financial loss. The Group’s maximum credit exposure
is the carrying amounts on the statement of financial position. The Group holds financial
instruments with credit worthy third parties.
At 30 June 2021, the Group held cash at bank. These were held with a financial institution with a
rating from Standard & Poors of AA or above (long term). The Group has no past due or impaired
debtors as at 30 June 2021.
d) Foreign Currency Risk Exposures
The consolidated entity undertakes certain transactions denominated in foreign currency and is
exposed to foreign currency risk through foreign exchange rate fluctuations.
Foreign exchange risk arises from future commercial transactions and recognised financial assets
and financial liabilities denominated in a currency that is not the entity's functional currency. The
risk is measured using sensitivity analysis and cash flow forecasting. The foreign currency risk is
not material.
26. Share Based Payments
a) Recognised share based payment transactions
Share based payment transactions recognised either as operating expenses in the statement of
comprehensive income, capital raising expenses in equity or exploration expenditure on the
statement of financial position as follows:
Operating expenses
Share based payment1,5
Other Expenses – corporate advisor services2
2021
$
-
-
-
2020
$
263,762
72,702
336,464
57
LINDIAN RESOURCES LTD
DIRECTOR’S DECLARATION
For the year ended 30 June 2021
Exploration expenditure
Part consideration for the Gaoual Bauxite Project
Guinea3
Consideration for the Lelouma Bauxite Project7
Consideration for the Woula Bauxite Project8
Consideration for consultancy fee6
Borrowings
Repayment of short term borrowings4
Equity
Issued capital3,4,7,8
Share-based payments reserve1,2
-
613,497
245,399
-
858,896
-
-
-
858,896
-
858,896
105,000
-
-
15,000
120,000
165,000
165,000
621,464
285,000
336,464
621,464
1.
As part of the terms of Mr Green’s commencement package, the Company issued to Mr Green 20,000,000 unlisted
options Executive Options (refer to Note 25) (a).
2. On 21 November 2019, the Group issued 5,000,000 fully unlisted options exercisable at $0.02 on or before 20
November 2022 to Baker Young as announced in the Notice to Annual General Meeting for 2019 (c).
3. On 21 November 2019, the Company issued 5 million shares as part consideration of the acquisition of the Guinea Bauxite Project.
4.25 million shares to Kabunga Holdings Pty Ltd and 750,000 shares to Mr. Kaba.
4. On 2 August 2019, 10,312,500 shares at $0.16 per share were issued to settle $150,000 in respect of the Rose Lawn facility
including interest of $15,000 due to the terms of the facility which required 110% of the amount drawn to be repaid. Refer to
Note 14.
5. On 21 November 2019, the Group issued 2,000,000 unlisted options exercisable at $0.02 on or before 20 November 2022 to the
Company’s geological consultant in Africa (b).
6. On 6 August 2019, the Company issued 937,500 shares at $0.016 for a total of $15,000 to Leticia Kabunga for services provided
in respect of the Tanzanian bauxite project.
7. On 26 November 2020, the Company issued 11,076,687 and 19,598,160 shares to Kanberra Resources Limited and Sarmin Mining
Inc. as consideration for the acquisition of the Lelouma Bauxite Project. Refer Note 18.
8. On 13 April 2021, the Company issued 12,269,939 shares to Asena Holdings Pty Ltd in part consideration of the acquisition of the
Woula Bauxite Project. Refer Note 18.
Fair value of options issued during the prior year calculated using the Black-Scholes option pricing
model applying the following inputs:
Valuation date
Valuation date fair value
Valuation date share price
Exercise price
Expected volatility
Option life
Expiry date
Risk-free interest rate
(a)
(b)
(c)
15 Nov 19
$0.0116
$0.021
$0.020
115.1%
1.6 years
30 Jun 21
0.78%
20 Nov 19
$0.0162
$0.023
$0.020
114.4%
3 years
20 Nov 22
0.72%
21 Nov 19
$0.0145
$0.021
$0.020
115.1%
3 years
20 Nov 22
0.75%
58
LINDIAN RESOURCES LTD
DIRECTOR’S DECLARATION
For the year ended 30 June 2021
Details of the options on issue during the years ended 30 June 2021 and 30 June 2020 are set out
below:
Grant Date Expiry Date Fair Value at
Valuation
Date
Exercise
Price
Number at
30 June
2020
Number at
30 June 2021
Number
vested /
exercisable
at 30 June
2020
Number
vested /
exercisable
at 30 June
2021
05 Oct 18
31 Dec 20
23 Oct 18
31 Dec 20
$0.0162
$0.0120
15 Nov 19
31 Dec 20
$0.0028
15 Nov 19
30 Jun 21
$0.0116
20 Nov 19
20 Nov 22
$0.0162
21 Nov 19
20 Nov 22
$0.0145
$0.02
$0.02
$0.03
$0.02
$0.02
$0.02
Total
20,000,001
20,000,001
5,000,000
5,000,000
10,000,000
10,000,000
20,000,000
20,000,000
-
-
-
-
-
-
2,000,000
2,000,000
2,000,000
2,000,000
5,000,000
5,000,000
5,000,000
5,000,000
62,000,001
62,000,001
7,000,000
7,000,000
The movement in options on issue during the current and previous year is reconciled as follows:
Options outstanding at 30 June 2019
Issued during the year
Exercised during the year
Expired during the year
Options
Weighted
Average
Exercise Price
Weighted
Average Fair
Value
number
25,000,001
37,000,000
-
-
$
$0.020
$0.023
-
-
$
$0.0154
$0.0099
-
-
Weighted
Average
Contractual
Life
days
550
-
-
-
Options outstanding at 30 June 2020
62,000,001
$0.022
$0.0121
320
Issued during the year
Exercised during the year
Expired during the year
-
(20,000,000)
(35,000,001)
Options outstanding at 30 June 2021
7,000,000
-
$0.020
$0.023
$0.020
-
$0.0116
$0.0118
$0.0150
-
-
-
508
59
LINDIAN RESOURCES LTD
DIRECTOR’S DECLARATION
For the year ended 30 June 2021
Parent Entity Information
27.
The following details relate to the parent entity, Lindian Resources Limited, as at 30 June 2021. The
information presented here has been prepared using consistent accounting policies as presented
in Note 2.
Current assets
Non-current assets
Total assets
Current liabilities
Total liabilities
Net assets/(liabilities)
Issued capital
Reserves
Accumulated losses
Total equity
Loss for the year
Other comprehensive income for the year
Total comprehensive loss for the year
2021
$
537,512
4,010,880
4,548,392
300,330
300,330
4,248,062
2020
$
657,951
1,968,890
2,626,841
119,801
119,801
2,507,040
35,450,160
9,716,196
(40,918,294)
32,424,788
9,716,196
(39,633,944)
4,248,062
2,507,040
(1,284,350)
-
(1,284,350)
(1,925,948)
-
(1,925,948)
Guarantees
Lindian Resources Limited has not entered into any guarantees in relation to the debts of its
subsidiary.
Other Commitments and Contingencies
Refer to Note 21 and Note 30 for details of the parent company’s commitments and contingent
liabilities.
28. Dividends
No dividend was paid or declared by the Group in the period since the end of the financial year and
up to the date of this report. The Directors do not recommend that any amount be paid by way of
dividend for the financial year ended 30 June 2021. The balance of the franking account is Nil as at
30 June 2021 (2020: Nil).
Events Subsequent to Balance Date
29.
The Company acknowledges the fluid situation in the Republic of Guinea an provided an update to
the ASX on 7 September 2021 on this matter. The announcement is available at www.asx.com.au
(ticker code: LIN). There is no further update to the matters raised in the announcement.
On 22 July 2021 and 3 September 2021, the Group changed the names of its Sarmin Bauxite Guinea
SARL and Sarmin Bauxite Limited subsidiaries to Lelouma Bauxite Guinea SARL and Bauxite
Holdings Limited respectively.
60
LINDIAN RESOURCES LTD
DIRECTOR’S DECLARATION
For the year ended 30 June 2021
On 28 September 2021, the company announced the Malawi Supreme Court of Appeal will hear an
appeal on 8 December 2021 in relation to an exclusive Option Agreement for the Kangankunde Rare
Earth Project in Malawi and the ongoing dispute against Michael Saner and Rift Valley Resource
Developments Limited regarding the project. The Company’s position is that the terms of the Option
Agreement remain valid. Other than the matter disclosed above, there have been no other material
subsequent events requiring disclosure up to the date of this report.
30. Contingent Consideration
Kangankunde Rare Earths Project
As disclosed in the prior year financial statements, Lindian has previously announced the
commencement of legal action in Malawi in respect of an exclusive option agreement (the
“Exclusive Option Agreement”) (“Agreement”), announced to the ASX on 6 August 2018, entered into
with Michael Saner (“Saner”) and Rift Valley Resource Developments Limited (“RVR”) regarding the
Kangankunde Rare Earths Project in Malawi (“Project”).
As detailed in the Company’s ASX announcement on 23 November 2018, Saner and RVR
subsequently claimed that changed circumstances in Malawi made the agreement unenforceable
and made an offer to enter into a separate agreement for the sale of the Project on completely
different terms to those originally agreed between the Company, Saner and RVR. The Company
obtained an injunction from the High Court of Malawi in November 2018 to prevent Michael Saner
and Rift Valley dealing with the Kangankunde Rare Earths Project and or the shares in Rift Valley, as
well as commenced legal proceedings seeking specific performance/damages.
Lindian’s position was that the terms of the Exclusive Option Agreement remained valid and
commenced legal action in the Malawi Courts to defend its rights which cumulated in a
disappointing decision in the high court of Malawi, laid down on 5 May 2020. This was announced
to the ASX on the 7 May 2020.
The Company had six weeks from the date of the judgment to file an appeal. On 8 July 2020, the
Company announced that a notice of appeal had been filed in respect of the Exclusive Option
Agreement. The Supreme Court of Appeal thereafter was obligated to set a date for hearing the
arguments of both parties at which time it will make its judgement.
On 8 July 2020, the Company announced a notice of appeal had been filed (19 May 2020) at the High
Court of Malawi in relation to the legal action in respect of an exclusive option agreement for the
Kangankunde Rare Earths Project in Malawi,
As a result of the lodgement of the notice of appeal, the High Court set down the matter for
settlement of the record of appeal on 15 July 2020. This simply means, that the process has
commenced for the parties and the court to agree on the documents to be included in the
submission to the Supreme Court of appeal. Once agreed (record of appeal set down), the High Court
prepares their submission. At this time, a date is then set for the case to be heard in the Supreme
Court of Malawi.
On 24 July 2020, the Company announced that it had received an offer from the legal counsel
representing Michael Saner and Rift Valley Resource Developments Limited to settle out of court.
The company did not accept this offer.
As described above in subsequent events, on 28 September 2021, the company announced the
Malawi Supreme Court of Appeal will hear an appeal on 8 December 2021 in relation to an exclusive
Option Agreement for the Kangankunde Rare Earth Project in Malawi and the ongoing dispute
against Michael Saner and Rift Valley Resource Developments Limited regarding the project. The
Company’s position is that the terms of the Option Agreement remain valid. As reported on 24 July
2020, the Company received further correspondence from legal counsel representing Saner and
RVR which detailed an out-of-court offer to settle. Lindian maintains a willingness to work
towards an out-of-court settlement based on sensible commercial terms. Legal costs to date have
been kept to a minimum and pursuit of the claim will not be a significant drain on the Company’s
ongoing cash requirements.
61
LINDIAN RESOURCES LTD
DIRECTOR’S DECLARATION
For the year ended 30 June 2021
Directors’ Declaration
In accordance with a resolution of the Directors of Lindian Resources Limited, I state that:
1). In the opinion of the Directors:
(a)
the financial statements and notes of the Group are in accordance with the
Corporations Act 2001, including:
(i)
(ii)
giving a true and fair view of the financial position of the Group as at 30 June
2021 and of its performance, for the year ended on that date; and
complying with Accounting Standards (including the Australian Accounting
Interpretations) and the Corporations Regulations 2001.
(b)
(c)
there are reasonable grounds to believe that the Company will be able to pay its debts
as and when they become due and payable; and
the financial statements and notes also comply with International Financial
Reporting Standards as disclosed in note 2(c).
2). This declaration has been made after receiving the declarations required to be made by the
director in accordance with sections 295A of the Corporations Act 2001 for the year ended 30 June
2021.
On behalf of the board
Asimwe Kabunga | Chairman
29 September 2021
62
AUDITOR’S INDEPENDENCE DECLARATION
As lead auditor for the audit of the consolidated financial report of Lindian Resources Limited for
the year ended 30 June 2021, I declare that to the best of my knowledge and belief, there have
been no contraventions of:
a)
the auditor independence requirements of the Corporations Act 2001 in relation to the audit;
and
b)
any applicable code of professional conduct in relation to the audit.
Perth, Western Australia
29 September 2021
N G Neill
Partner
63
INDEPENDENT AUDITOR’S REPORT
To the members of Lindian Resources Limited
Report on the Audit of the Financial Report
Opinion
We have audited the financial report of Lindian Resources Limited (“the Company”) and its
controlled entities (“the Group”), which comprises the consolidated statement of financial position
as at 30 June 2021, the consolidated statement of profit or loss and other comprehensive income,
the consolidated statement of changes in equity and the consolidated statement of cash flows for
the year then ended, and notes to the financial 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:
a) giving a true and fair view of the Group’s financial position as at 30 June 2021 and of its
financial performance for the year then ended; and
b) complying with Australian Accounting Standards and the Corporations Regulations 2001.
Basis for opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities
under those standards are further described in the Auditor’s Responsibilities for the Audit of the
Financial Report section of our report. We are independent of the Group in accordance with the
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 believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our opinion.
Material uncertainty related to going concern
We draw attention to Note 2 in the financial report, which indicates that a material uncertainty exists
that may cast significant doubt on the entity’s ability to continue as a going concern. Our opinion is
not modified in respect of this matter.
Emphasis of matter - material uncertainty related to carrying value of exploration expenditure
We also draw attention to Note 9 in the financial report, which indicates a material uncertainty in
relation to the recoverability of the Group’s capitalised exploration expenditure in relation to the
Kangankunde Rare Earths Project in Malawi. Our opinion is not modified in respect of this matter.
Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most significance
in our audit of the financial report of the current period. These matters were addressed in the context
of our audit of the financial report as a whole, and in forming our opinion thereon, and we do not
provide a separate opinion on these matters. In addition to the matter described in the Material
64
Uncertainty Related to Going Concern and the Emphasis of matter we have determined the
additional matters described below to be the key audit matters to be communicated in our report.
Key Audit Matter
How our audit addressed the key audit
matter
Deferred exploration and evaluation expenditure
Refer to Note 9
In accordance with AASB 6 Exploration for and
Evaluation of Mineral Resources,
the Group
capitalises acquisition costs of rights to explore as well
as subsequent exploration and evaluation expenditure
and applies the cost model after recognition.
Our audit focussed on the Group’s assessment of the
carrying value of the capitalised exploration and
evaluation expenditure. We considered this to be a key
audit matter because this is one of the significant
assets of the Group. There is a risk that the capitalised
expenditure no longer meets the recognition criteria of
the standard. In addition, we considered is necessary
to assess whether facts and circumstances existed to
suggest that the carrying amount of an exploration and
evaluation asset may exceed its recoverable amount.
Additionally, the Group has commenced legal action in
Malawi in respect of an exclusive option agreement
entered into with Michael Saner (“Saner”) and Rift
Valley Resources Developments Limited (“RVR”) to
earn up to 75% interest in the Kangankunde Rare
Earths Project in Malawi (“Project”). The carrying value
of this project at balance date is $662,852.
The Group obtained an injunction from the High Court
of Malawi in November 2018 to prevent RVR or Saner
from dealing with the Project and/or shares in RVR. In
May 2020, the High Court had ruled in favour of Saner
and RVR and the Group has lodged an appeal in July
2020.
Our procedures included but were not
limited to the following:
• We obtained an understanding of the
key processes associated with
management’s
the
exploration and evaluation asset
carrying values;
review
of
• We substantiated a sample of
• We
exploration expenditures;
the
considered
Director’
assessment of potential indicators of
impairment;
• We obtained evidence that the Group
has current rights to tenures of its area
of interest;
• We enquired about the current status
of the legal action in Malawi;
• We examined the exploration budget
and discussed with management the
nature of planned ongoing activities;
and
• We examined the disclosures made in
the financial report.
Information other than the financial report and auditor’s report thereon
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 2021, 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.
65
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 have no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the financial report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is
free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that
includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee
that an audit conducted in accordance with 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.
As part of an audit in accordance with the Australian Auditing Standards, we exercise professional
judgement and maintain professional scepticism throughout the audit. We also:
-
Identify and assess the risks of material misstatement of the financial report, whether due to
fraud or error, design and perform audit procedures responsive to those risks, and obtain audit
evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not
detecting a material misstatement resulting from fraud is higher than for one resulting from
error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the
override of internal control.
-
-
- Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing
an opinion on the effectiveness of the Group’s internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of
accounting estimates and related disclosures made by the directors.
Conclude on the appropriateness of the directors’ use of the going concern basis of accounting
and, based on the audit evidence obtained, whether a material uncertainty exists related to
events or conditions that may cast significant doubt on the Group’s ability to continue as a
going concern. If we conclude that a material uncertainty exists, we are required to draw
attention in our auditor’s report to the related disclosures in the financial report or, if such
disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit
evidence obtained up to the date of our auditor’s report. However, future events or conditions
may cause the Group to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the financial report, including the
disclosures, and whether the financial report represents the underlying transactions and
events in a manner that achieves fair presentation.
-
We communicate with the directors regarding, among other matters, the planned scope and timing
of the audit and significant audit findings, including any significant deficiencies in internal control
that we identify during our audit.
We also provide the directors with a statement that we have complied with relevant ethical
requirements regarding independence, and to communicate with them all relationships and other
matters that may reasonably be thought to bear on our independence, and where applicable,
related safeguards.
66
From the matters communicated with the directors, we determine those matters that were of most
significance in the audit of the financial report of the current period and are therefore the key audit
matters. We describe these matters in our auditor’s report unless law or regulation precludes public
disclosure about the matter or when, in extremely rare circumstances, we determine that a matter
should not be communicated in our report because the adverse consequences of doing so would
reasonably be expected to outweigh the public interest benefits of such communication.
Report on the Remuneration Report
Opinion on the Remuneration Report
We have audited the Remuneration Report included within the directors’ report for the year ended
30 June 2021.
In our opinion, the Remuneration Report of Lindian Resources Limited for the year ended 30 June
2021 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
HLB Mann Judd
Chartered Accountants
Perth, Western Australia
29 September 2021
N G Neill
Partner
67
LINDIAN RESOURCES LTD
ADDITIONAL ASX INFORMATION
Additional ASX Information
Additional information required by the Australian Stock Exchange Ltd and not shown elsewhere in
this report is as follows. The information is current at 28 September 2021.
Number of Shareholders and Unquoted Security Holders
Shares
As at 28 September 2021, there were 806 shareholders holding a total of 747,935,771 fully paid
ordinary shares.
Unquoted Securities
The number of unquoted securities on issue as at 28 September 2021 is as follows:
Unquoted Security
Number on Issue
Options exercisable at $0.02 on or before 20 November 2022
80,212,500
Options exercisable at $0.032 on or before 28 September 2023
30,674,847
Performance Rights – stage 1
Performance Rights – stage 2
12,500,000
17,500,000
Distribution schedule and number of holders of equity securities as at 28
September 2021
Fully Paid Ordinary Shares
Options exercisable at
$0.02 on or before 20
November 2022
Options exercisable at
$0.032 on or before 28
September 2023
Performance Rights –
stage 1
Performance Rights –
stage 2
1 – 1,000
110
1,001 –
5,000
32
5,001 –
10,000
14
10,001 –
100,000
334
100,001 –
and over
316
Total
806
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
29
29
4
2
2
4
2
2
The number of holders holding less than a marketable parcel of fully paid ordinary shares as at 28
September 2021 was 181.
68
LINDIAN RESOURCES LTD
ADDITIONAL ASX INFORMATION
Top Twenty Shareholders
Shareholder name
Ven Capital Pty Ltd
Kabunga Holdings Pty Ltd
HSBC Custody Nominees (Australia) Limited
Mr Rohan Patnaik
Mr Waleed Kh S A A Esbaitah
Mr Victor Lorusso
Citicorp Nominees Pty Limited
Ms Leticia Kokutengeneza Kabunga
Leticia Kabunga
BNP Paribas Nominees Pty Ltd
Easy Connect Group Pty Ltd
Asena Holdings Pte Ltd
Kanberra Resources Limited
Ropa Investments (Gibraltar) Limited
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15 Mr Shouzhi Zhang
16
17 Ms Lianaeli Kineneko Mtei Nampesya
18 Mrs Lin Sheung Sze
19
20 Ms Fengmei Shen
Cove Street Pty Ltd
Claymore Ventures Limited
Number of
ordinary shares
held
84,616,845
80,275,000
32,543,846
31,000,000
30,674,847
26,000,000
17,310,721
17,298,660
13,500,000
13,380,874
13,000,000
12,269,939
11,076,687
10,000,000
9,450,000
9,000,000
8,622,352
8,550,000
8,000,000
7,500,000
%
11.31%
10.73%
4.35%
4.14%
4.10%
3.48%
2.31%
2.31%
1.81%
1.79%
1.74%
1.64%
1.48%
1.34%
1.26%
1.20%
1.15%
1.14%
1.07%
1.00%
Total
444,069,771
59.35%
Holder Details of Unquoted Securities
Unquoted security holders that hold more than 20% of a given class of unquoted securities as at 28
September 2021 other than the performance rights which were issued under an employee incentive
scheme are as follows:
Security
Name
Options exercisable at $0.032 on
or before 28 September 2023
Options exercisable at $0.032 on
or before 28 September 2023
Performance Rights – Stage 1
Performance Rights – Stage 2
Mr Waleed Kh S A A Esbaitah
Ven Capital Pty Ltd
Kabunga Holdings Pty Ltd
Kabunga Holdings Pty Ltd
Restricted Securities as at 28 September 2021
The Company had no restricted securities as at 28 September 2021.
Number of
Securities
15,337,424
12,269,939
10,625,000
14,875,000
69
LINDIAN RESOURCES LTD
ADDITIONAL ASX INFORMATION
Substantial Shareholders
Substantial shareholders in Lindian Resources Limited and the number of equity securities over
which the substantial shareholder has a relevant interest as disclosed in substantial holding
notices provided to the Company are listed below:
Shareholder name
1
1
Kabunga Holdings Pty Ltd
Ven Capital Pty Ltd
Ordinary
shares held
80,275,000
% Ordinary
shares
held
11.62%
Date of Notice
29 Dec 2020
84,616,845
11.31%
17 Sept 2021
Voting Rights
All ordinary shares carry one vote per share without restriction.
Unquoted options and performance rights have no voting rights.
Corporate Governance
The Board of Lindian Resources Limited is committed to achieving and demonstrating the highest
standards of Corporate Governance. The Board is responsible to its Shareholders for the
performance of the Company and seeks to communicate extensively with Shareholders.
The Board believes that sound Corporate Governance practices will assist in the creation of
Shareholder wealth and provide accountability.
In accordance with ASX Listing Rule 4.10.3, the Company has elected to disclose its Corporate
Governance policies and its compliance with them on its website, rather than in the Annual Report.
Accordingly, information about the Company's Corporate Governance practices is set out on the
Company's website at https://www.lindianresources.com.au/corporate.
70
LINDIAN RESOURCES LTD
ADDITIONAL ASX INFORMATION
Tenement Listing
Project
Country
Licence
Status
Licence Type
Number
Gaoual Project 1 Guinea
22584
Granted
Prospecting
Lelouma Project Guinea
2017/4994
Granted
Prospecting
Lindian
Beneficial
Interest
75%
75%
Woula Project
Guinea
2020/2351
Granted
Prospecting
61% (Up to 75%)
Lushoto Project Tanzania
11176/2018
Granted
Prospecting
Lushoto Project Tanzania
11177/2018
Granted
Prospecting
Lushoto Project Tanzania
11178/2018
Granted
Prospecting
Lushoto Project
Tanzania
11262/2019
Granted
Prospecting
Lushoto Project Tanzania
12194/2017
Application Prospecting
Lushoto Project Tanzania
12195/2017
Application Prospecting
Lushoto Project Tanzania
12227/2017
Application Prospecting
Pare Project
Tanzania
11263/2019
Granted
Prospecting
Pare Project
Tanzania
14098/2019
Application
Prospecting
Pare Project
Tanzania
14099/2019
Application
Prospecting
Pare Project
Tanzania
14100/2019
Application
Prospecting
Uyowa Project 3
Tanzania
10918/2016
Granted
Prospecting
Uyowa Project 3
Tanzania
2241CWZ
Granted
Primary Mining
Uyowa Project 3
Tanzania
2237GWZ
Granted
Primary Mining
Uyowa Project 3
Tanzania
002240
Granted
Primary Mining
Uyowa Project 3
Tanzania
2238CWZ
Granted
Primary Mining
Uyowa Project 3
Tanzania
2242CWZ
Granted
Primary Mining
Uyowa Project 3
Tanzania
2243CWZ
Granted
Primary Mining
Uyowa Project 3
Tanzania
2239CWZ
Granted
Primary Mining
51%
51%
51%
51%
51%
51%
51%
51%
51%
51%
51%
100%
100%
100%
100%
100%
100%
100%
100%
1. For further details, see Lindian’s ASX announcement dated 10 April 2019..
2. Hapa Gold Limited is a 100% owned subsidiary of Lindian Resources Limited.
3. License held on trust for Lindian Resources pursuant to a Declaration of Trust with Leticia Kabunga.
71
LINDIAN RESOURCES LTD
ADDITIONAL ASX INFORMATION
Summary of results of the entity’s annual review of its Mineral Resources
and Ore Reserves.
The Company carries out an annual review of its Mineral Resources and Ore Reserves as required by
the ASX Listing Rules.
GAOUAL BAUXITE PROJECT
The Gaoual Bauxite Project is in north western Guinea within the Boké Bauxite Belt. It is situated
south of the township of Gaoual in the northern portion of the Kogon-Tomine interfluve, about 65
km northeast of Sangaredi. The Company has agreements in place to acquire up to 75% of the
Gaoual Bauxite Project.
The Gaoual asset contains conglomerate bauxite at the Bouba plateaux which is the same type of
ore that was initially discovered at the Sangaredi bauxite deposit which is owned by Compagnie
des Bauxites de Guinée (“CBG”).
Bouba plateaux resource estimate 1
The resource contained within the Bouba Plateau was estimated in July 2020 by Cube Consulting,
Perth Australia. The resource has been estimated using ordinary kriging. A total JORC compliant
Indicated Resource of 101.5M @ 49.8% Al2O3 was defined using a cut-off of 40% Al2O3. The resource
includes high grade areas with 83.8Mt @ 51.2% Al2O3 using a higher cut-off of 45% Al2O3 (Table X).
Resources
Cut-off
Grade
Grade
(Mt)
(Al2O3%)
(Al2O3%)
(SiO2%)
High Grade Resources
83.8
Total Resources
101.5
45
40
51.2
49.8
11.0%
11.5%
Category
Indicated
Indicated
Table X: Bouba Plateaux Resource Summary
In relation to the Mineral Resource estimate reported herein and in July 2020, the Company
confirms that it is not aware of any new information or data that materially affects the information
included in the relevant market announcements and that all material assumptions and technical
parameters underpinning the estimates in the relevant market announcements continue to apply
and have not materially changed.
COMPETENT PERSONS’ STATEMENTS – GAOUAL
The information in this announcement that relates to exploration results is based on information
compiled or reviewed by Mr Mark Gifford, an independent Geological expert consulting to Lindian
Resources Limited. Mr Mark Gifford is a Fellow of the Australian Institute of Mining and Metallurgy
and has sufficient experience which is relevant to the style of mineralisation and type of deposit
under consideration and to the activity which he is undertaking to qualify as a Competent Person
as defined in the December 2012 edition of the “Australasian Code for Reporting of Exploration
Results, Mineral Resources and Ore Reserves” (JORC Code). Mr Gifford consents to the inclusion in
the announcement of the matters based on his information in the form and context in which it
appears.
72
LINDIAN RESOURCES LTD
ADDITIONAL ASX INFORMATION
LELOUMA BAUXITE PROJECT
The Lelouma Bauxite Project is located around 100km northeast of Sangarédi, site of the CBG
railway line loading area. The rail line is in turn around 100 km northeast of the port in Kamsar,
which exports up to 25Mtpa of bauxite. Lelouma is located just 40km from Lindian’s high grade
Gaoual conglomerate bauxite project, with both projects within haul distance of existing rail
infrastructure.
The Lelouma Project has an exceptional resource base and has been systematically explored with
over US$10 million of historic expenditure by Sarmin and Lelouma’s previous owner, Mitsubishi
Corporation.
Lelouma Resource Estimation11
In October 2020, an updated Mineral Resource statement for the Lelouma Project was prepared
and reported by SRK Consulting (UK) Ltd, in compliance with the JORC Code. SRK used Ordinary
Kriging in Datamine to interpolate major oxide sample grades into a 3D block model (utilising
percentage-space conversions to honour grade profiles during estimation) and assessed the
estimation quality and fully validated the model. The validation process confirmed the robustness
of the parameters used and the resultant model.
The inclusion of new drilling data into the existing database enabled the reporting of a resource of
900 Mt at 45.0% Al2O3 and 2.1% SiO2. This additional exploration work has also enabled the
definition of 155 Mt at 47.9% Al2O3 and 1.8% SiO2 within the Measured Mineral Resource category
confirming the Project’s potential to produce high-grade ore, delivering some of the highest quality
ore into Atlantic and Pacific refinery markets.
Cut-off Criteria
Mineral Resource
Category
Tonnes (Mt)
Al2O3 (%)
SiO2 (%)
>40% Al2O3
<10% SiO2
>1m Thick
<1 Strip Ratio (waste:ore
thickness)
Measured
Indicated
Measured+Indicated
Inferred
Grand Total M+I+I
155
743
898
2
900
47.9
44.4
45.0
42.9
45.0
1.8
2.1
2.1
2.8
2.1
Table 4: Lelouma Mineral Resource Statement (Inclusive of the Mineral Resources in Table 4)
Cut-off Criteria
>45% Al2O3
<10% SiO2
>1m Thick
<1 Strip Ratio (waste:ore
thickness)
Mineral Resource
Category
Measured
Indicated
Measured+Indicated
Inferred
Grand Total M+I+I
115
284
398
0.1
398
49.6
47.6
48.1
46.1
48.1
Tonnes (Mt)
Al2O3 (%)
SiO2 (%)
Table 5: Lelouma High Grade Portion (Included within the Mineral Resources in Table 3)
11 For further details, see Lindian’s ASX announcement dated 6 October 2020
1.8
2.1
2.0
2.8
2.0
73
LINDIAN RESOURCES LTD
ADDITIONAL ASX INFORMATION
In relation to the Mineral Resource estimate reported herein and in October 2020, the Company
confirms that it is not aware of any new information or data that materially affects the information
included in the relevant market announcements and that all material assumptions and technical
parameters underpinning the estimates in the relevant market announcements continue to apply
and have not materially changed.
COMPETENT PERSONS’ STATEMENTS – LELOUMA
The information in this announcement that relates to Mineral Resources is based on information
reviewed and compiled by Mr Mark Campodonic or Mr Ben Lepley. They take responsibility for any
contained information presented in relation to the Mineral Resource estimates.
Mr Campodonic is a Member with Chartered Professional Status (Geology) of the Australian Institute
of Mining and Metallurgy ("MAusIMM(CP)"). Mr Campodonic is a full-time employee of SRK and is the
Competent Person for the Woula Bauxite Project Mineral Resource estimate. He has sufficient
experience which is relevant to the style of mineralisation and type of deposit under consideration
and to the activity which he has undertaken to qualify as a Competent Person as defined in the 2012
Edition of the 'Australasian Code for the Reporting of Exploration Results, Mineral Resources and Ore
Reserves'. Mr Campodonic consents to the inclusion in this announcement of the matters based on
his information in the form and context in which it appears.
Mr Ben Lepley is a Chartered Geologist ("CGeol") of the Geological Society of London. Mr Lepley is a
full-time employee of SRK and is the Competent Person for the Lelouma Project Mineral Resource
estimate. He has sufficient experience which is relevant to the style of mineralisation and type of
deposit under consideration and to the activity which he has undertaken to qualify as a Competent
Person as defined in the 2012 Edition of the 'Australasian Code for the Reporting of Exploration
Results, Mineral Resources and Ore Reserves'. Mr Lepley consents to the inclusion in this
announcement of the matters based on his information in the form and context in which it appears.
WOULA BAUXITE PROJECT
The Woula Bauxite Project is located in north-western Guinea, proximal to the coast and just 10km
from an existing haul road which is connected to the Katougouma river port.
Woula Mineral Resource Statement 12
The Mineral Resource statement for the Woula Bauxite Project was prepared and reported by SRK
Consulting (UK) Ltd (“SRK”) by constraining the in-situ model using cut-off grades >34% Al2O3 and
<10% SiO2, a maximum stripping ratio of 1:1 (thickness overburden / thickness bauxite) and a
minimum bauxite thickness of 1 m, all to satisfy the criteria of reasonable prospects for eventual
economic extraction.
No pit optimisation was used to constrain the Mineral Resource due to the very shallow and low
stripping nature of the deposit. All tonnages and grades are reported on a dry basis.
12 For further details, see Lindian’s ASX announcement dated 23 September 2020.
74
LINDIAN RESOURCES LTD
ADDITIONAL ASX INFORMATION
These parameters are guided by and have been validated using SRK’s experience of other Guinea
bauxite operations.
Cut-off Criteria
>34% Al2O3
10% SiO2 / >1m Thick / <1 Strip
Ratio (waste:ore thickness)
Mineral Resource
Category
Inferred
Total
Tonnes
(Mt)
64
64
Al2O3
38.7
38.7
SiO2
3.1
3.1
Table 5 - Woula Mineral Resource Statement (inclusive of Mineral Resources stated in
Table 3)
There are higher grade zones within the Woula Project and to demonstrate this, a separate split of
material >40% Al2O3 has been provided for the purpose of this announcement.
Cut-off Criteria
>40% Al2O3
10% SiO2 / >1m Thick / <1 Strip
Ratio (waste:ore thickness)
Mineral Resource
Category
Inferred
Total
Tonnes
(Mt)
19
19
Al2O3
41.7
41.7
SiO2
3.2
3.2
Table 6 - Woula High Grade (Contained within the Mineral Resources as stated in
Table )
In relation to the Mineral Resource estimate reported herein and in August 2018, the Company
confirms that it is not aware of any new information or data that materially affects the information
included in the relevant market announcements and that all material assumptions and technical
parameters underpinning the estimates in the relevant market announcements continue to apply
and have not materially changed.
COMPETENT PERSONS’ STATEMENTS – WOULA
The information in this announcement that relates to Mineral Resources is based on information
reviewed and compiled by Mr Mark Campodonic or Mr Ben Lepley. They take responsibility for any
contained information presented in relation to the Mineral Resource estimates.
Mr Campodonic is a Member with Chartered Professional Status (Geology) of the Australian Institute
of Mining and Metallurgy ("MAusIMM(CP)"). Mr Campodonic is a full-time employee of SRK and is the
Competent Person for the Woula Bauxite Project Mineral Resource estimate. He has sufficient
experience which is relevant to the style of mineralisation and type of deposit under consideration
and to the activity which he has undertaken to qualify as a Competent Person as defined in the 2012
Edition of the 'Australasian Code for the Reporting of Exploration Results, Mineral Resources and Ore
Reserves'. Mr Campodonic consents to the inclusion in this announcement of the matters based on
his information in the form and context in which it appears.
Mr Ben Lepley is a Chartered Geologist ("CGeol") of the Geological Society of London. Mr Lepley is a
full-time employee of SRK and is the Competent Person for the Lelouma Project Mineral Resource
estimate. He has sufficient experience which is relevant to the style of mineralisation and type of
deposit under consideration and to the activity which he has undertaken to qualify as a Competent
Person as defined in the 2012 Edition of the 'Australasian Code for the Reporting of Exploration
Results, Mineral Resources and Ore Reserves'. Mr Lepley consents to the inclusion in this
announcement of the matters based on his information in the form and context in which it appears.
75
LINDIAN RESOURCES LTD
ADDITIONAL ASX INFORMATION
TANZANIA BAUXITE PROJECT
No exploration activities, data collection or mineral resource estimation has been undertaken at
the Tanzania bauxite projects during the reporting period.
COMPETENT PERSON’S STATEMENT – TANZANIA
The information in this report that relates to exploration results for the Lushoto, Pare and Uyowa
Projects is based on information compiled or reviewed by Mr Matt Bull, who is a director of Lindian
Resources Limited. Mr Bull is a member of the Australian Institute of Geoscientists and has
sufficient experience which is relevant to the style of mineralisation and type of deposit under
consideration and to the activity which he is undertaking to qualify as a Competent Person as
defined in the December 2012 edition of the “Australasian Code for Reporting of Exploration Results,
Mineral Resources and Ore Reserves” (JORC Code). Mr Bull consents to the inclusion in the
announcement of the matters based on his information in the form and context in which it appears.
76