Contents
Chairman’s Report ......................................................................................................................................................................................................... 1
Operations Overview ....................................................................................................................................................................................................3
Directors’ Report ....................................................................................................................................................................................................... 277
Remuneration Report (Audited) ...................................................................................................................................................................... 31
Consolidated Statement of Profit or Loss and Other Comprehensive Income .......................................................46
Consolidated Statement of Financial Position.................................................................................................................................. 47
Consolidated Statement of Cash Flows .................................................................................................................................................. 48
Consolidated Statement of Changes in Equity ................................................................................................................................ 49
Notes to the Financial Statements ............................................................................................................................................................... 51
Directors’ Declaration ...............................................................................................................................................................................................81
Auditor’s Independence Declaration ......................................................................................................................................................... 82
Auditor’s Report ........................................................................................................................................................................................................... 83
Additional ASX Information ............................................................................................................................................................................... 87
Corporate Directory
Directors
Asimwe Kabunga (Executive Chairman)
Trevor Matthews (Executive Director)
Jack (Giacomo) Fazio (Non-Executive Director)
Yves Occello (Non-Executive Director)
Alwyn Vorster (Non-Executive Director)
Park Wei (Non-Executive Director)
Joint Company Secretaries
Brett Tucker (appointed 1 June 2023)
Michael Fry (appointed 1 January 2023)
Registered Office
Lindian Resources Limited
ABN 53 090 772 222
Level 24
108 St Georges Terrace
Perth WA 6000
Telephone: + 61 8 6557 8838
Website: www.lindianresources.com.au
Share Registry
Automic Registry Services
Level 5
191 St Georges Terrance
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
Chairman’s Report
I am pleased to present the 2023 Annual Report for Lindian
Resources Limited. It has indeed been a transformational
year, primarily due to the Company securing an agreement
in August 2022 to acquire the globally significant
Kangankunde Rare Earths Project in Malawi for US$30m,
an asset now recognised as the largest reported rare earths
deposit globally outside of China, and justifying its
nickname of ‘The King’. This is underpinned by a Mineral
Resource Estimate of 261 million tonnes averaging 2.19%
TREO encompassing 5.7 million tonnes of contained rare
earths including 1.2 million tonnes of critical metal
elements neodymium praseodymium (NdPr) with an NdPr ratio averages 20.2% of TREO.
As well as having excellent grade, being well endowed with light rare earths that are essential
for the energy transition, and the material being largely non-radioactive, Kangankunde is fully
permitted for production which has allowed us to implement an aggressive works program to
rapidly bring the project into production, targeting late 2024.
The significance of securing the agreement to acquire Kangankunde, after a multi-year period
of negotiations, should not be understated given the value that is now being progressively
unlocked for all stakeholders.
First and foremost, by kickstarting exploration and project development activities almost
immediately after acquiring the asset, we have clearly demonstrated to the local Community
and the Government of Malawi our intention to bring Kangankunde into production as quickly
as possible, which means employment opportunities and other benefits for the community,
and significant economic benefits to Malawi. We have established strong working
relationships with the Government and the Community leaders and would like to sincerely
thank them for their continued support.
The acquisition, and the subsequent development of the project over the course of the year
and into 2024, has also delivered considerable value to our shareholders with Lindian now
included in the All Ordinaries Index. I can assure our shareholders that the Board will continue
to be actively involved in realising maximum value from Kangankunde’s future development.
As we have communicated, Lindian has commenced a staged development of Kangankunde
with work now underway to construct a Stage 1 Processing Plant with the aim of
commissioning and operation prior to the end of CY2024, with the plant to then be expanded
upon in future years to a vastly scaled up operation.
This strategy has been developed and is being implemented by a very talented and committed
project delivery team who are well skilled in geology, metallurgy, process engineering,
community and government relations and mine development.
Complementing this team is Lindian’s Board members who are actively engaged in the
development of Kangankunde and our Guinea bauxite assets. This level of commitment from
the Board is a unique feature of Lindian, where Board members have been pivotal in securing
1
financing for the company, contributing to multiple commercial negotiations and driving mine
development activities. The Board will continue to be actively involved in all aspects of the
Company, collaborating with and challenging our managers and contractors so we deliver
optimum outcomes.
All agree that the pace of activity achieved by Lindian has been unparalleled, and I would like to
thank and acknowledge our Board members as well as our talented and experienced managers
and contractors who have done a magnificent job in advancing the project to where it is today.
The Company’s achievements have been greatly assisted by a number of successful share
placements over the past 12 months, many done at a premium to market, which has seen the
Company raise over $60m since July 2022, culminating in the recent raising of $35m, which
leaves the Company very well-funded to execute on its near-term development plans.
Elsewhere during the period, Lindian consolidated its bauxite development strategy in Guinea
where it is focused on advancing its large-scale multi-asset bauxite portfolio. Lindian’s three
Guinea-based projects – Woula, Gaoual and Lelouma – can be developed to benefit directly from
the broader infrastructure investments which have cemented Guinea’s status as a global
bauxite exporter.
A recent ban on export of bauxite from Indonesia, has increased the importance of Guinea to
world bauxite markets, which is a recognised provider of premium quality bauxite. And with
bauxite shipments from Guinea currently achieving record highs, plans to provide the requisite
links to haul road and rail infrastructure to bring forward production from the ‘Northern
Corridor’ where Lindian’s bauxite projects are located are advancing quickly, evidenced by the
recent execution of a Memorandum of Understanding between Lindian and Compagnie des
Bauxites de Guinee, 49% owned by the Guinean State with the balance held by a consortium
comprising Rio Tinto-Alcan, Alcoa and Dadco Investments.
With the success of Kangankunde and progress being made in Guinea, FY23 was a year in which
Lindian established itself as one of the most exciting resource exploration companies on the
ASX.
For the Company and its investors, FY24 presents a unique opportunity to capitalise on its
potential in exploration and project development through strong operational and strategic
execution. Kangankunde is now only just starting to be recognised on the global stage as a
project that will have a major impact on the supply and demand dynamics for rare earths. As
such, I have every confidence that this will translate to greater value in the coming year and
beyond for all of our stakeholders.
I thank Lindian shareholders for the ongoing support and look forward to providing more
exciting updates as the Company develops its world-class asset portfolio.
Yours sincerely,
Asimwe Kabunga | Chairman
2
Operations Overview
During the 2023 financial year, Lindian made significant progress on the Kangankunde Rare Earths
Project in Malawi and advancing its portfolio of world-class bauxite projects in Guinea.
Both projects are considered to be globally significant, and world-class, with commodities in high
demand (rare earths, bauxite) leveraged to rapidly growing carbon abatement technologies like electric
vehicles and wind turbines.
RARE EARTH PROJECT – MALAWI
On 4 August 2022, Lindian announced it had entered into an agreement to acquire 100% of the
Kangankunde Rare Earths Project in Malawi.
Following shareholder approval for the acquisition in late September 2022, the Company moved quickly
to commence mine development activities with the aim of quantifying a maiden mineral resource as
quickly as possible.
Location
The Kangankunde Rare Earths Project (Kangankunde or the Project) is located in central Malawi ~90kms
north of the city of Blantyre in the southern part of the country.
Project Location Map: Kangankunde Rare Earths Project
3
The Project is well located close to infrastructure including rail, air, road, power and water.
Project Logistics Map: Kangankunde Rare Earths Project
Mineral Tenement and Land Tenure Status
The Kangankunde Rare Earths Project is located in the south of Malawi, 90 km north of the city of Blantyre.
The mineral tenements include a Medium Scale Mining Licence (MML0290/22) which is surrounded by
Exploration Licence EPL0514/18R as above. The Exploration and Mining Licences have an Environmental
and Social Impact Assessment Licence No.2:10:16 issued under the Malawi Environmental Management
Act No. 19 of 2017. Both licences are in good standing.
On 1 August 2022 Lindian announced the acquisition of 100% of Malawian registered Rift Valley Resource
Developments Limited (Rift Valley) and its 100% owned title to Exploration Licence EPL0514/18R and
Mining Licence MML0290/22.
Under the terms of the Transaction, Lindian has an agreement to acquire 100% of issued capital of Rift
Valley from its existing shareholders for US$30 million, payable in tranches.
As at the date of this report, Lindian has paid US$20.0 million in cash and is the registered holder of 67% of the shares
in Rift Valley. The remaining amount of US$10.0 million is due 48 months from the signature date of the Share
Purchase Agreement, or on the commencement of production (refer ASX release 1 August 2022) at which time the
remaining 33% of the shares in Rift Valley will be transferred to Lindian.
Table 1: Kangankunde Rare Earths Project Tenement Details.
Licence ID
Licence Type
Granted Date
Expiry / Renewal
Date
MML0290/22
Medium Scale Mining
22 April 2022
22 April 2032
EPL0514/18R
Exploration
16 October 2021
16 October 2023
Area
(km2)
9.0
16.0
4
Geology
The Kangankunde Hill rises to a height of up to 200 m above the surrounding plain. The deposit contains
a central zone of carbonatite rocks passing outwards to a series of zones of altered breccias of varying
composition of carbonatite and wall rock clasts in a carbonatite matrix, and ultimately into unaltered
gneiss host rock. The main rare earth containing mineral in the deposit is monazite which is uniquely
non-radioactive.
Lindian Exploration Activity
In late August 2022, Lindian’s Executive Chairman and CEO conducted a site visit to the Kangankunde
project, engaging with key Government and local stakeholders which reconfirmed support, extensive
mineralisation, and validated existing understanding of project development works access, water and
power preliminaries. Lindian set out its plan for the immediate commencement of mine development
activities subject to availability of drilling rigs, consumables, suitable personnel and weather and
received overwhelming stakeholder support.
In late October 2022, Lindian commenced drilling activities at Kangankunde Project.
The Phase One Drill Program consisted of 14,163 metres of drilling. The drill pattern was based on 50 metre
east-west sections, and as radial fans perpendicular to the interpreted carbonatite boundary where
topography provides access. The program was designed to give initial data for resource evaluation and
mine planning.
The Phase Two Drill Program was designed to consist of two deep drill holes of ~1,000 metres in length to
be drilled from drill pads near the base of the Kangankunde hill and were designed to test the N-S and E-
W axies of the carbonatite between 300 metres and 800 metres below the hill top.
Both Phase One and Two drill programs are complete, with all assays having been received and published).
The results have been outstanding, with nearly every metre of every hole drilled containing high-grade
rare earths mineralisation, and almost all holes ending in mineralisation. Uniquely, the mineralisation is
non-radioactive, which is extremely favourable from the perspective of logistics, processing and waste
management.
Phase One Drill Program
The Phase One drill program has been completed with a total of 81 RC holes for 12,520 drill metres and 10
core drill holes, including 6 core tails to RC holes, for 1,642.7 drill metres.
Phase Two Drill Program
Phase Two Drill Program is complete. The Program consisted of two deep drill holes approximately 500
metres below the deepest holes in the Phase One Drill program. Drillhole 1 (KGKRCDD074) was drilled from
the west to the east across the short axis of the deposit and has been completed to a depth of 980.5
metres Drillhole 2 (KGKRC009) was drilled north-to-south down the long axis of the mineralised system,
has also been completed reaching end-of-hole at its targeted depth of 1,000m.
Neodymium (Nd) and Praseodymium
Critically, the mineralisation is dominated by light Rare Earths of Cerium (Ce), Lanthanum (La),
Neodymium (Nd) and Praseodymium (Pr) with an average NdPr content of ~20% returned – refer
following table.
NdPr is in high demand for its use in permanent magnets.
5
Table 2: Rare earths intersections for the entire Phase One Drill program*
Hole ID
KGKDD001
KGKDD002
KGKDD003
KGKDD004
KGKDD005
KGKDD006
KGKDD007
KGKDD008
KGKRCDD001
KGKRCDD002
KGKRCDD003
KGKRCDD009
KGKRCDD018
KGKRCDD029
KGKRC004
KGKRC005
KGKRC006
KGKRC007
KGKRC008
KGKRC010
KGKRC011
KGKRC012
KGKRC013
KGKRC014
KGKRC015
KGKRC016
KGKRC017
KGKRC019
KGKRC020
KGKRC021
KGKRC022
KGKRC023
KGKRC024
KGKRC025
KGKRC027
KGKRC028
KGKRC029
KGKRC030
KGKRC031
KGKRC032
KGKRC033
KGKRC034
KGKRC035
KGKRC036
KGKRC037
KGKRC038
From
(m)
0.0
0
0
0
2
2
5
2
0
0
0
0
4
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
2
0
1
0
0
0
0
To
(m)
316
188
142
245
60
60
60
60
274
323
241
317
297
321
97
117
300
186
272
138
32
210
162
179
160
171
163
56
167
89
146
28
169
109
170
169
84
188
175
63
169
181
147
100
160
181
Intersection
(m)
316
TREO
%
2.2
NdPrO% of
TREO**
20
various
2.0 to 3.1
17 to 18
142
245
58
58
55
58
274
323
241
317
293
321
97
117
300
186
272
138
32
210
162
179
160
171
163
56
167
89
146
28
169
109
2.1
2.8
4.5
3.0
4.7
2.4
2.5
2.8
2.4
2.7
3.7
1.4
2.8
2.8
2.3
3.0
2.1
1.5
2.7
1.9
2.2
2.2
2.0
1.7
1.4
1.8
2.9
1.3
1.3
2.9
1.5
1.6
various
2.5 to 2.6
169
1.7
various
1.2 to 6.2
188
175
61
169
1.6
2.3
1.9
2.1
21
20
18
21
18
20
21
21
21
20
19
22
20
16
20
17
19
22
17
20
22
23
19
20
22
19
18
19
18
20
20
20
22
22
20
21
21
20
22
various
1.8 to 2.9
20 to 22
147
100
160
181
1.3
3.4
3.0
1.8
24
20
20
19
ASX release Date*
17th April 2023
9th March 2023
17th April 2023
17th April 2023
17th July 2023
17th July 2023
17th July 2023
17th July 2023
29th May 2023
29th May 2023
29th May 2023
17th April 2023
29th May 2023
17th July 2023
16th January 2023
24th January 2023
16th January 2023
24th January 2023
16th January 2023
24th January 2023
24th January 2023
6th February 2023
6th February 2023
6th February 2023
9th March 2023
17th April 2023
17th April 2023
9th March 2023
9th March 2023
9th March 2023
9th March 2023
9th March 2023
9th March 2023
9th March 2023
9th March 2023
9th March 2023
9th March 2023
9th March 2023
9th March 2023
17th April 2023
17th April 2023
17th April 2023
17th April 2023
11th May 2023
17th April 2023
17th April 2023
6
KGKRC039
KGKRC040
KGKRC041
KGKRC042
KGKRC043
KGKRC044
KGKRC045
KGKRC046
KGKRC047
KGKRC048
KGKRC049
KGKRC050
KGKRC051
KGKRC052
KGKRC053
KGKRC054
KGKRC055
KGKRC056
KGKRC057
KGKRC058
KGKRC059
KGKRC060
KGKRC061
KGKRC062
KGKRC063
KGKRC064
KGKRC065
KGKRC066
KGKRC067
KGKRC068
KGKRC069
KGKRC070
KGKRC071
KGKRC072
KGKRC073
KGKRC075
KGKRC076
KGKRC077
KGKRC078
KGKRC079
KGKRC080
KGKRC081
KGKRCDD074
KGKDD009
KGKRCDD083
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
1
0
0
0
0
0
150
167
181
151
181
155
150
150
145
143
151
150
154
151
148
81
159
160
109
180
49
175
163
180
180
180
180
181
180
161
181
179
147
180
180
23
160
157
157
180
180
161
150
167
181
151
181
155
150
150
145
143
151
150
154
151
148
81
159
160
109
180
49
175
163
180
180
180
180
181
180
161
181
179
147
180
180
23
3.0
2.7
2.2
2.4
1.9
1.8
1.7
2.4
1.8
1.8
1.9
2.6
2.7
2.1
2.6
3.4
1.7
2.3
1.9
1.8
5.5
1.7
3.7
3.5
2.8
3.0
1.9
1.8
3.4
3.2
1.4
2.5
2.5
2.1
1.4
2.2
23
17
19
22
19
19
18
18
22
21
20
18
17
19
20
16
23
21
18
20
19
21
19
19
19
20
21
21
19
20
23
20
19
22
21
20
various
2.5 to 6.8
16 to 20
157
157
179
180
161
2.6
1.8
2.2
3.3
1.5
20
21
20
19
23
19
18
20
17th April 2023
17th April 2023
11th May 2023
11th May 2023
11th May 2023
11th May 2023
11th May 2023
11th May 2023
11th May 2023
11th May 2023
11th May 2023
11th May 2023
11th May 2023
11th May 2023
11th May 2023
11th May 2023
29th May 2023
29th May 2023
11th May 2023
29th May 2023
29th May 2023
29th May 2023
29th May 2023
29th May 2023
29th May 2023
29th May 2023
29th May 2023
29th May 2023
29th May 2023
29th May 2023
17th July 2023
17th July 2023
17th July 2023
17th July 2023
17th July 2023
17th July 2023
17th July 2023
17th July 2023
17th July 2023
17th July 2023
17th July 2023
17th July 2023
31st July 2023
18th September 2023
31st July 2023
Phase 2 Deep drill results below
980.6
1,000
325
980.6
1,000
325
2.73
2.60
2.49
* Bold text entire hole no cut-off applied; internal intersections accumulated at > 2% TREO cut-off.
** NdPrO = Nd2O3 + Pr6O11, *** NdPrO% / TREO% x 100
7
Image 1 below shows plan view location of all Phase One and Two drill holes.
Image 1: Kangankunde Phase 1 Drill and Phase 2 Program drilling locations with respect to the
carbonatite geology
8
What has been achieved over the course of the past year is testament to the executive team supported by
a willing Malawi Government and local community.
Image 2: Government of Malawi officials and local community representatives on site at Kangankunde
participating in active dialogue
Mineral Resource Estimate
In August 2023, Lindian announced a maiden Mineral Resource Estimate (MRE) for the Kangankunde Rare
Earths Project in Malawi of 261 million tonnes averaging 2.19% TREO using a 0.5% TREO cutoff grade (refer ASX
announcement of 3 August 2023).
The resource is entirely Inferred status, has been estimated in accordance with JORC 2012 guidelines and
is summarised in Table 3.
Table 3: Kangankunde Rare Earths Project Mineral Resource Above 0.5% TREO Cut-off Grade
Resource
Classification
Tonnes
(millions)
Inferred Resource
261
TREO
(%)
2.19
NdPr% of TREO**
(%)
20.2
Tonnes Contained
NdPr* (millions)
1.2
Rounding has been applied to 1.0Mt for tonnes and 0.1% NdPr% of TREO which may influence total
calculation.
* NdPr = Nd2O3 + Pr6O11, ** NdPrO% / TREO% x 100
This MRE places Kangankunde amongst the world’s largest rare-earth deposits and as such is a
globally strategic resource for long-term security of rare earth supply.
Table 4: Kangankunde Rare Earths Mineral Resource by Estimation Domain (at 0.5% TREO cut-off)
Inferred Classification
by Domain
Tonnes
(millions)
Domain 1
Domain 2
Domain 3
Domain 4
Domain 5
58
72
23
60
46
TREO
(%)
1.76
1.91
3.23
2.40
2.34
NdPr% of TREO
(%)
Tonnes Contained
NdPr* (000’s)
22.0
20.7
18.5
19.5
20.4
225
285
137
281
220
* NdPr = Nd2O3 + Pr6O11. Rounding has been applied to 1.0Mt for tonnes and 0.1% NdPr% of TREO which may
influence total calculation.
9
Resource estimation utilised multi-element relationships from rock chemistry and rare earth
mineralisation to define five domains within the overall carbonatite. These domains were assessed
against geological understanding and field observations from surface mapping and drill core and were
considered appropriate representations of the mineralisation distribution. The resource estimation by
domains is summarised in Table 4:.
Image 3: Kangankunde Mineral Resource Domains
Domains 3 and 4 are high-grade domains that will be the focus for initial development planning.
10
Grade tonnage curve analysis of the resource shows the robustness of grade continuity in the resource
with a reduction in tonnes and increase in grade with increasing cut-off.
Image 4: Typical Cross-section showing Main Geology Features with Resource Footprint
Estimation domaining utilised multi-element relationships from minor rock chemistry and rare earth
mineralisation to define five domains within the overall carbonatite limits. These domains were assessed
against geological understanding and field observations from surface mapping and drill core and were
considered appropriate representations of the mineralisation distribution. Leapfrog was utilised to build
mineralisation domain wireframes and to code sample intervals with the applicable domain. A plan
representation of the defined domains is presented in Image 5 above.
11
Image 5: Plan view showing Estimation Domains
Future Exploration Activities Planned
As at the date of writing, the Phase 3 Drill Program has just commenced. The objective is to undertake
in-fill drilling on top of the hill which aims to update a portion of the Mineral Resource from inferred to
indicated, in support of our planned operations end CY2024.
Aso under the Phase 3 Drill Program, Lindian will drill-test areas to the north and south for rare earths
mineralisation, with the potential for these areas to form part of the overall resource.
12
Image 6: Prospective Regional Targets overlaid over Kangankunde geology
Following the completion of the Phase 3 Drill program, and pending receipt of the results therefrom, the
Company intends to turn its attention to quantifying an Exploration Target for the Project, for publication
later this calendar year 2023.
The Exploration Target will utilise the Maiden Mineral Resource Estimate, which encapsulates
predominantly the mineralisation encountered in the top 300 metres, together with the results of the two
deep Phase 2 drill-holes and the Phase 3 Drill Program.
In addition to the Phase 3 Drill Program currently underway, the metallurgical team is presently
undertaking further metallurgical programs to continue to improve on the outstanding results achieved,
which have confirmed that water-only, low-cost gravity and magnetic beneficiation techniques are
suitable for Kangankunde mineralisation, and result in a recovery of 70% at a concentrate grade of over
60%.
With the above works planned, FY2024 will again be a busy year for Kangankunde on the mine
development and metallurgy fronts and Lindian looks forward to providing shareholders with updates in
respect to each as the year unfolds.
Simultaneous with the above described mine development and metallurgy programs, work on
construction of a Stage 1 Processing Plant on site at Kangankunde can be expected to advance at a rapid
rate with commissioning expected late next calendar year.
13
Stage 1 Processing Plant
During the year, Lindian advanced its plans for a Stage 1 Processing Plant.
Image 7: Preliminary schematic of plant design from ground level. Existing retaining wall (left),
ball mills (centre left), recovery circuit (centre) and tailings thickener (right)
The following key initiatives have been undertaken or initiated:
(i)
(ii)
(iii)
(iv)
(v)
(vi)
(vii)
a ROM pad has been established,
the site layout plan is established and the road upgrade design from the M1 highway is
completed,
power providers are being scoped for third party provision,
a ground survey for underground water sources is complete and application for a licence in
progress,
a detailed topographic survey has been completed,
an application for an explosive’s magazine licence for construction has been attained, and
detailed engineering for the process plant is near complete.
Engineering group Afengco (Pty) Ltd leads the process design study.
Tenders for civil works on site are due to be issued in the near term ahead of major activity early next
calendar year in what will be an exciting time for the Lindian team.
14
Image 8: Metallurgical flowsheet (simplified) for the grinding and recovery of Kangankunde monazite
concentrate
Image 9: Elevated view (artistic) of the recovery circuit and tailings thickener.
15
Image 10: Side view (artistic) of the recovery circuit and concentrate
filter press and packing shed and tails thickener.
The plan of development is summarized below.
Capital Costs Estimations
CAPEX estimations for Stage 1 processing plant have commenced with budget pricing for most major
equipment received from potential Vendors. The budgets for Stage 1 detailed engineering (civils,
infrastructure, processing plant), construction, mining development, mobile crushing and screening are
in progress. Capital costs will be determined during the source of the project assessment based on final
quotations received from suppliers and contractors. These are anticipated to be available and finalised
during the second half of calendar year 2023 and form part of the Company’s engineering study.
Operating Costs Estimations
Operating costs will be assessed on the basis of the outcome of a process to seek expressions of interest
for mining contracts, process plant operating costs estimations, administration, supervision and
management costs, logistics costs and ancillary program costs.
16
Project Study
On completion of firm quotations from contractors for project development, and acceptable quotations
for estimations of operating costs (including mining, labour and power, plant operating costs and other
imputation costs), the Company intends to compile a feasibility document that will provide a commercial
and economic assessment of the project metrics.
Lindian looks forward to providing further information about the plant’s design, capital cost, and projected
returns from the Phase 1 Processing Facility as we continue to advance all workstreams related to its
construction.
Brief Overview of the Rare Earths Market
Rare Earths, also called Lanthanides, have been widely used in electronics for over half a century.
It is almost certain that everyone has come into contact with rare earths metals, perhaps, without even
knowing it. Rare earths metals Neodymium, Dysprosium, Gadolinium, Lanthanum, Praseodymium, and
Terbium are commonly used in a range of mobile devices, such as cellphones, tablets, computers. They’re
found in the electronic screens, batteries, hard drives and other digital components.
Rare earths are increasingly used in a range of advancing technologies, including wind turbines and
electric car motors, and are considered to be essential as the world progresses to electrification.
Image Credit: Rare earths minerals form part of the contemporary world's vital products (ABC News)
Neodymium is used to make powerful magnets used the manufacture of wind turbines and electric cars.
It also powers laser-range finders used in sports such as hunting and golf but also for military precision-
guided munition applications.
Praseodymium is used to create strong metals for use in aircraft engines and electric vehicles. It is also
a component in high-quality glass and visors to protect welders.
Rare earths play a progressive role in the clean and renewable energy movement as governments search
for ways to move away from fossil fuels, in particular through electric vehicles.
Rare earths metals and their alloys are used in multiple areas of the automotive industry such as
catalysts, batteries, and motors.
17
Image Credit: Molycorp
According to Adamas Intelligence:
Demand growth of the 2020s will soon be dwarfed by the astronomical demand growth of the 2030s
– and therein lies the real defining challenge and opportunity facing the global rare earths industry
today.
Looking ahead to 2030, it is exceptionally challenging to foresee how, under any realistic scenario, the
supply-side of the rare earths industry will be able to keep up with rapidly growing demand for magnet
rare earths especially neodymium, praseodymium, dysprosium and terbium.
However, when peering into the outlook for the next decade to come, it becomes quickly apparent that the
rapid demand growth of the 2020s will soon be dwarfed by the massive demand growth of the 2030s –
and therein lies the real defining challenge and opportunity facing the global rare earths industry today.
If the global industry continues to operate myopically – the rate of demand growth for magnet rare
earths will soon reach ‘escape velocity’
Source: Post-2030: Unfathomable Rare Earths Demand Growth Awaits - Adamas Intelligence
Rare earths market
According to UBS report dated 15 August 2023, the rare earths market is presently dominated by
neodymium (Nd) and praseodymium (Pr) which together made up 80% of the market by value in 2022.
The neodymium magnet made from praseodymium alloy is one of the most powerful and widely used rare
earth magnets. The magnets are three times stronger, and one-tenth the size of conventional magnets.
The majority of hybrid EV models and most BEV models use permanent magnet motors, for their
space/weight-saving benefits and their added performance.
The products gained from the NdPr mix are a crucial part of our renewable energy future. Every electric
vehicle (EV) drivetrain requires up to 2kg of NdPr oxide, whereas a three-megawatt (MW) direct drive wind
turbine uses 600kg.
18
Rare earths demand outlook
The demand outlook for rare earths and specifically NdPr is extremely strong with the rate of take up of
electric vehicles globally gathering pace and countries increasingly looking to renewable energy sources
and specifically wind power to deliver their energy requirements as a solution to reliance on gas and as
part of a decarbonisation strategy underway globally.
According to Bloomberg New Energy Finance, total global electric vehicle sales went from approximately
3.2 million in 2020 to 10.3 million in 2022. The firm predicts more than 13 million EV sales in 2023 and
exponential growth in the coming years—as many as 20 million EV sales in 2025. Global sales of
commercial EVs also more than doubled in 2021 and Bloomberg reports that large global truck makers
expect 35 to 60 percent of their annual sales to be electric trucks by 2025.
19
The demand outlook is not limited however to just electric vehicles and wind turbines.
20
But electric vehicles and wind turbines are clearly key drivers of future demand.
Rare earths supply
China has a dominant position in the supply of rare earths. According to recent information, China
accounts for 63% of the world’s rare earth mining, has 85% of rare earth processing capacity and is
responsible for 92% of rare earth magnet production.
21
The US Government has publicly stated that China’s dominance in rare earths makes US supply chains
vulnerable.
According to U.S. Trade Representative Katherine Tai, the level of U.S. reliance on China-based
manufacturing came to the forefront during the Trump administration and accelerated when the Covid-
19 pandemic in 2020 disrupted global supply chains. The Biden administration has announced
multibillion-dollar initiatives to encourage companies to develop and manufacture critical technologies
in the U.S.
The recently introduced Inflation Reduction Act is a forward-looking, incentive-based policy that will spur
investments into clean energy technologies, and increase the demand for clean energy sources, by 2030,
and can be expected to drive the demand for rare earths.
Rare earths pricing
China is the main driver when it comes to REE prices and the rare earths market as a whole.
China has such a monopoly on the sector that REE prices spiked in 2010 and 2011 when the country cut
exports. That sparked a boom for rare earths companies and mining projects around the world, as they
sought to create reliable sources of rare earths supply outside of China. Many rare earths mining projects
outside of China failed to thrive when REE prices fell again.
In 2014, the World Trade Organization ruled against Chinese export quotas for rare earths, and
China removed its industry caps in January 2015. The country also eliminated its export tariffs for rare
earths in May 2015, leading to a further fall in REE prices.
The ongoing trade war between the US and China has added a layer of complication to the rare earth
metals sector. While it’s been suggested that the country’s hold on the market is weakening, rare earth
minerals and metals were not included when the Trump administration placed tariffs on US$200 billion
of Chinese goods, a move that points to America’s dependence on the Asian nation.
In February 2021, US President Joe Biden signed an executive order aimed at reviewing shortcomings in
the nation's domestic supply chains for rare earths, medical devices, computer chips and other
critical resources. The next month, the US Department of Energy announced a US$30 million initiative to
rare earths and battery metals such
research and secure domestic supply chains
as cobalt and lithium. In June 2022, Biden invoked the Defense Product Act to increase the domestic
production of critical minerals such as rare earths, as well as to fund feasibility studies and expand
existing resources.
for
The NdPr is a case in point. Prices rose rapidly during 2021 and 2022, prompting miners outside of China
to increase their production capacities and tonnages, only for China to increase its production to higher-
than-expected levels causing the price of NdPr to fall rapidly in recent months. Many analysts are
predicting that the price of NdPr has bottomed out and will soon rise again due to an ongoing supply
deficit.
22
GUINEA BAUXITE PORTFOLIO
Lindian’s Guinea bauxite projects contain approximately 1 billion tonnes of high-quality product – refer
mineral resource statement below. The projects are located in the north-west of Guinea – see Location
Map following.
Lindian’s Guinea bauxite development strategy is focused on the development of a leading multi-asset
bauxite portfolio. In the Board’s view, Lindian’s three Guinea-based projects – Gaoual, Lelouma and Woula
– can be developed to benefit directly from the broader infrastructure investments which have cemented
Guinea’s status as a major global bauxite exporter.
Lindian notes rising interest in Guinea as a growing source of bauxite supply for world markets following
the announcement on 21 December 2022 by Indonesia’s President Joko Widodo that Indonesia will
impose a bauxite export ban starting from June 2023.
Lindian’s strategy is to jointly develop the proposed deep-water Port of Dobali and associated logistics
corridor (the “Northern Corridor”) to unlock the full potential of the Group’s portfolio, and to this end, the
Company’s 75% owned infrastructure subsidiary, Terminal Logistics and Holdings Pte Ltd (“TLH”), has
continued to advance the Memorandum of Understanding (“MOU-G”) regarding the “Northern Corridor”.
As an interim step, Lindian is exploring the opportunity to take advantage of the significant infrastructure
developed in Guinea in the past 10 years to facilitate low capital, near term production. To this end, during
the financial year the Company held discussions with parties with respect to infrastructure sharing
agreements for rail, road and port allocations.
Location
Guinea is located on the west coast of Africa neighboured by Sierra Leone and Liberia (to the south),
Senegal and Guinea-Bissau (to the north) and Mali and Cote D’Ivoire (to the east). See map below.
Location map: Guinea
23
The location of the different assets within Lindian’s bauxite portfolio is shown below:
Location map: Lindian’s Guinean Bauxite Projects and infrastructure
During FY23, Lindian made important progress with respect to the following development initiatives
across its Guinea project portfolio:
•
Advancing negotiations and responded to due diligence requests with interested parties on
development of the Northern Corridor rail and port infrastructure;
• Continued discussions with respect to infrastructure sharing agreements for rail, road and port
•
allocations outside of its Northern Corridor development strategy;
In addition, the Company’s 75% owned infrastructure subsidiary, Terminal Logistics and Holdings
Pte Ltd (“TLH”), continues to advance the Memorandum of Understanding (“MOU-G”) regarding
the potential exploration and joint development of the Port of Dobali and the associated logistics
corridor (the “Northern Corridor”) in Guinea.
24
Specifically, during FY23, Lindian signed a Supply Agreement with C&D Logistics Group, a subsidiary of
Xiamen C&D Inc (SHA: 600153), a China-based conglomerate listed on the Shanghai Stock Exchange for
Lindian to supply 23 million Wet Metric Tonnes (‘WMT’) of bauxite from the Gaoual High Grade
Conglomerate Bauxite Project in Guinea, West Africa over a six-year period commencing in 2025.
https://www.cndlogistics.com/en/
C&D Logistics will now discuss options with Lindian to cooperate on the development of the Gaoual
Project through bauxite prepayment arrangements. The parties have agreed to the following annual
volumes through to 2030 with pricing determined annually based on the Standard Guinea LT bauxite
(GBIX) price:
Contract Year
Quantity (WMT)
2025
2026
2027
2028
2029
2030
Total
3,000,000
3,000,000
3,000,000
4,000,000
4,000,000
5,000,000
23,000,000
C&D Logistics Group is well-funded to support Lindian. In 2022, its parent company Xiamen C&D Inc
reported net after-tax profits of CNY$11.27bn (US$1.62bn) with net assets of CNY$165.34bn (US$23.77bn).
With operations in major supply chain logistics and real estate development, Xiamen C&D was ranked
15th on Fortune magazine's China Top 500 list for 2022 with annual revenues of more than CNY$700bn
(US$100.6bn).
C&D Logistics Group already sources bauxite from West Africa and has engaged with Lindian for a
number of years to secure access to Gaoual High Grade Conglomerate Bauxite. The parties will now enter
into a cooperation agreement on funding Gaoual’s development through an offtake prepayment
arrangement. As such, Lindian does not anticipate a need to fund the project’s development from its cash
reserves.
The Supply Agreement provides the Company with a very strong foundation to now secure logistics
infrastructure access in Guinea given C&D Logistics Group’s commitment to purchase 23M WMT. Based
on test work conducted in 2021, Gaoual’s High Grade Conglomerate Bauxite can be further upgraded and
silica content greatly reduced through simple screening. Give this, and that the bauxite is high grade and
near-surface, start-up capex is expected to be relatively modest utilising third party contractors with low-
cost bulk mining equipment.
The Supply Agreement is a preliminary purchase and sale intention of the parties and in order to further
clarify relevant purchasing and sale matters, the rights and obligations of the parties in carrying out the
cooperation and the specific legal relationship concerning the specific delivery place, delivery time,
quantity, quality, price, payment terms, etc. shall be subject to an annual contract(s) separately signed
by the parties. If the relevant contents of the Supply Agreement are inconsistent with the annual
contract(s) signed by both parties, the annual contract(s) shall prevail.
And post year end, Lindian entered into a Memorandum of Understanding with Compagnie des Bauxites
de Guinee (CBG), 49% owned by the Guinean State with the balance held by a consortium comprising Rio
Tinto-Alcan, Alcoa and Dadco Investments, for the purposes of supplying bauxite from its Gaoual Bauxite
Project to CBG.
In addition, Lindian is in preliminary discussions with other parties that have indicated interest in an
involvement in commercialising Lindian’s Guinea bauxite projects.
25
A summary of the JORC resources contained within Lindian’s bauxite portfolio is shown in the table below.
Resource
s (Mt)
Al2O3
(%)
SiO2
(%)
Category
Cut-off
(Al2O3 %)
Lelouma Project (75% Owned by Lindian)
High Grade Resources
398
48.1
2.0 Measured + Indicated
Total Lelouma Resources
900
45.0
2.1
Measured, Indicated
& Inferred
Gaoual Project (75% Owned by Lindian)
High Grade Resources
83.8
51.2
Total Gaoual Resources
101.5
49.8
Woula Project (51 % Owned by Lindian)
High Grade Resources
19.0
41.7
Total Woula Resources
64.0
38.7
11.0
11.5
3.2
3.1
Indicated
Indicated
Inferred
Inferred
>45
>40
>45
>40
>40
>34
LUSHOTO AND PARE BAUXITE PROJECTS, TANZANIA
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. The Group holds its 51%
interest in the Projects through the acquisition of Batan Pty Limited.
No material work was undertaken on the Tanzanian projects during the FY23 period.
26
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 2023.
DIRECTORS
During, or at any time during the financial year and up to the date of this financial report.
Asimwe Kabunga
Bachelor of Science, Mathematics and Physics
Executive Chairman since 8 August 2022; director since 8 June 2017
Asimwe Kabunga is a Tanzanian born Australian entrepreneur who 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.
Other current directorships of ASX
Listed Companies:
• Volt Resources Limited
• Resource Mining Corporation Limited
• AuKing Mining Limited
Former directorships of ASX Listed
Companies in last three years:
• Nil
Interests in Shares and Options over
Shares in the Company:
125,526,578 fully paid ordinary shares
1,369,048 Options expiring 9-Dec-2025 ex price $0.30
•
•
• 961,538 Options expiring 3-Apr-2026 ex price $0.35
•
13,000,000 Performance Rights
Alwyn Vorster
Bachelor of Science (Hons) Geology, an MBA and a Master of Science (Mineral Economics)
Non-Executive Director since 21 August 2023
Alwyn Vorster is a thirty-year veteran of the mining industry and has a proven track
record of leading companies through all phases of the mining value chain from
exploration, project studies, approvals, development, infrastructure access, corporate transactions, to
sales and shipping.
Most recently, Alwyn was Interim CEO at rare earths company Hastings Technology Metals Limited
(ASX:HAS). He was previously Managing Director at iron ore/potash company BCI Minerals Limited
(ASX:BCI) for 6-years, and other CEO roles include Iron Ore Holdings Ltd, API Management JV and Oakajee
Port and Rail JV (acting).
Alwyn’s primary focus at Lindian is to leverage his rare earths, offtake, infrastructure access and project
development experience to provide strategic advice in support of project activities in Malawi and Guinea.
Other current directorships of ASX
Listed Companies:
Former directorships of ASX Listed
Companies in last three years:
Interests in Shares and Options over
Shares in the Company:
• ChemX Materials Ltd, Arrow Minerals Ltd
• BCI Minerals Limited
• 69,444 fully paid ordinary shares
27
Trevor Matthews
Bachelor of Commerce, Post Graduate Diploma in Applied Finance and Investment
Executive Director since 21 August 2023
Mr Matthews has an accounting and finance background with 35 years’ experience
in the resources industry including roles with North and WMC Resources in
executive-level positions and most recently he was Managing Director/CEO of ASX-
listed Volt Resources Limited for a six-year term. Previously he held the role of Managing Director at MZI
Resources (2012-16), advancing the $110 million Keysbrook mineral sands project from feasibility study
stage through to production, and Murchison Metals (2005-12), developing an operating iron ore mine and
associated logistics infrastructure in WA’s Midwest as part of a larger JV with Mitsubishi Corporation to
develop a large-scale iron ore mine and the multi-user Oakajee Port and Rail infrastructure project.
Consequently, he has extensive executive management experience of feasibility studies, project
planning/development, coordination and leveraging capital markets effectively to secure the appropriate
mix of debt/equity funding, to successfully complete a mining project.
Other current directorships of ASX
Listed Companies:
• Victory Metals Limited,
• Resource Mining Corporation Limited
Former directorships of ASX Listed
Companies in last three years:
• Volt Resources Limited
Interests in Shares and Options over
Shares in the Company:
• Nil
Giacomo Fazio
Graduate Certificate in Project Management, Associate Diploma in Civil Engineering,
Diploma in Quantity Surveying
Non-Executive Director since 26 June 2020
Fazio
is a highly
Giacomo
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.
experienced project,
Other current directorships of ASX
Listed Companies:
•
Volt Resources Limited
Former directorships of ASX Listed
Companies in last three years:
• Nil
Interests in Shares and Options over
Shares in the Company:
•
•
200,000 fully paid ordinary shares
1,300,000 Performance Rights
28
Yves Occello
Chemical Engineer
Non-Executive Director since 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.
Mr Occello has 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.
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.
Other current directorships of ASX
Listed Companies:
Former directorships of ASX Listed
Companies in last three years:
• Nil
• Nil
Interests in Shares and Options over
Shares in the Company:
•
1,500,000 Performance Rights
Park Wei
Bachelor of Arts, Nanjing University
Non-Executive Director since 4 September 2023
Park Wei is a Chinese born Australian entrepreneur with multiple investments in
the property, mining and finance sectors in Australia and other international
markets. In 1994, he founded Top Pacific Group, which is today a diversified property
group engaged in property development, construction, property financing, sales,
and strata management.
Since 2019, Park Wei has been the Chairman and major shareholder of wholesale fund manager PAN
Australia Fund Management Pty Ltd, formerly Boill Fund Management Pty Ltd.
Other current directorships of ASX
Listed Companies:
Former directorships of ASX Listed
Companies in last three years:
• Nil
• Nil
Interests in Shares and Options over
Shares in the Company:
114,797,079 fully paid ordinary shares
•
• 7,000,000 Options expiring 29-Aug-2025 ex price
$0.10
10,000,000 Options expiring 6-Jun-2025 ex price $0.12
•
• 7,500,000 Options expiring 3-August-2025 ex price
$0.25
• 5,952,381 Options expiring 9-Dec-2025 ex price $0.30
29
Michael Fry
Joint Company Secretary since 1 January 2023
Michael Fry has over 25 years’ experience in the corporate finance industry and extensive experience in
Company Secretarial, Chief Financial Officer and Director roles with ASX listed companies.
Mr Fry completed a Bachelor of Commerce degree from the University of Western Australia majoring in
Accounting and Finance, following which he worked in chartered accounting for `10 years with KPMG
(Perth) and Deloitte (Melbourne) prior to spending ~3 years with boutique corporate advisory practice
Troika Securities. For the past 25 years, Mr Fry has worked across a number of ASX listed public
companies including a decade at Swick Mining Services as its CFO, Company Secretary and Finance
Director, ~7 years at Globe Metals & Mining Ltd as its CFO and Company Secretary and ~4 years at Cauldron
Energy Limited as its CFO, Company Secretary and Executive Director.
Brett Tucker
Joint Company Secretary since 1 June 2023
Mr Tucker has acted as Company Secretary to numerous ASX-listed companies across a range of
industries. Mr Tucker has a strong compliance background gained from experience in an international
accounting practice, where he completed the Chartered Accountant qualification.
Mr Tucker is part of the team at Automic Group which provides company secretarial and governance
services.
30
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 seeks to set aggregate remuneration at a level that provides the Company with the ability to
attract and retain directors of the highest calibre, whilst incurring a cost that is acceptable to
shareholders, with the fee structure reviewed annually against fees paid to directors of comparable
companies.
The Board assesses the appropriateness of the nature and amount of emoluments of individual officers
on a periodic basis by reference to their role, comparable roles at comparable companies and 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 rewards for officers 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.
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.
Details of Remuneration
Details of Key Management Personnel
Key Management Personnel
Position
Asimwe Kabunga
Alistair Stephens
Giacomo Fazio
Yves Occello
Alwyn Vorster
Trevor Matthews
Park Wei
Executive Chairman (since 9 November 2020)
Chief Executive Officer (since 8 August 2022)
Non-Executive Director (since 26 June 2020)
Non-Executive Director (since 29 July 2020)
Non-Executive Director (since 21 August 2023)
Executive Director (since 21 August 2023)
Non-Executive Director (since 4 September 2023)
31
Details of the nature and amount of each element of the emolument of each Director and key
management personnel executive of the Group for the financial year are as follows:
2023
Short term
Options
Employment
Base
salary &
annual
leave
Director fees
Consulting
fees
Share based
payments
Super-
annuation
KMP
$
$
$
$
$
Total
$
Performance
related
%
Asimwe Kabunga
Giacomo Fazio
Yves Occello
Trevor Matthews1
Alwyn Vorster2
Park Wei2
-
-
-
-
-
-
Alistair Stephens3
345,043
60,000
283,919
558,861
24,062
926,842
60,000
60,000
-
-
-
-
-
-
-
-
-
-
55,886
55,886
-
-
-
-
-
-
-
-
115,886
115,886
-
-
-
445,455
23,185
813,683
345,043
180,000
283,919
1,116,088
47,247
1,972,297
60%
48%
48%
-
-
-
55%
57%
1. Trevor Matthews and Alwyn Vorster were appointed as directors on 21 August 2023
2. Park Wei was appointed as a director on 4 September 2023
3. Alistair Stephens was appointed CEO on 8 August 2022.
2022
Short term
Options
Employment
Base
salary &
annual
leave
Director fees
Consulting
fees
Share based
payments
Super-
annuation
KMP
$
$
$
$
$
Asimwe Kabunga
Giacomo Fazio
Yves Occello
-
-
-
-
60,000
126,600
60,000
60,000
-
-
180,000
126,600
-
-
-
-
Total
$
Performance
related
%
-
-
-
186,600
60,000
60,000
- 306,600
-
-
-
-
There were no other key management personnel of the group during the financial years ended 30 June
2023 and 30 June 2022.
The Group did not employ the services of any remuneration consultants during the financial year ended
30 June 2023.
The Group has liabilities of $43,022 for unpaid Key Management Personnel remuneration at 30 June 2023
(2022: $27,105).
Service Agreements
Executive Chairman
The company announced on 4 August 2022 that the Non-Executive Chairman, Mr Asimwe Kabunga was
transitioning to the role of Executive Chairman, under the terms of a new services agreement
commencing on 8 August 2022, for an indefinite term.
The services of Mr Kabunga are by way of a consulting arrangement with annual fees payable equivalent
to $250,000, plus statutory superannuation. Incentives will also be agreed, subject to shareholder
approval. Mr Kabunga is entitled to a minimum notice period of three months from the Company and the
Company is entitled to a minimum notice period of three months from Mr Kabunga.
32
Executive Director
Mr Trevor Matthews and the Company entered into an executive service agreement commencing on 21
August 2023. Mr Matthews is engaged to provide services in the capacity of Executive Director for an
indefinite term.
Mr Matthews is entitled to a minimum notice period of three months from the Company and the Company
is entitled to a minimum notice period of three months from Mr Matthews. 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, unless the engagement is terminated by the Company for cause in which case the
Company is not required to make any payment.
Pursuant to the terms of the agreement, Mr Matthew’s appointment as a director of the Company is
subject to approval by Shareholders at the next Annual General Meeting of the Company and thereafter
subject to the rotational provisions set out in accordance with the Company’s Constitution and the
Corporations Act.
Under the service agreement, Mr Matthews’ salary as Executive Director has been set at $240,000 per
annum inclusive of statutory superannuation.
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 ongoing appointment of each non-executive director of the Company is subject to election by
Shareholders at the next Annual General Meeting of the Company following their initial appointment and
thereafter subject to the rotational provisions set out in the Company’s Constitution.
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.
Pursuant to the Company’s Constitution and the ASX listing rules, this amount may only be increased
with the approval of Shareholders at a general meeting.
Presently, each of the Company’s non-executive directors, being Mr Vorster, Mr Fazio and Mr Occello,
receive an annual directors’ fee of $60,000, payable monthly.
Chief Executive Officer
On 4 August the Company announced the appointment of Mr Alistair Stephens as Chief Executive Officer,
effective from Monday 8 August 2022.
Mr Stephens is a specialist in the critical and strategic commodities sector, with emphasis on rare earths
and rare metals, having worked directly in the field for 20 years. He is a qualified geologist, holding a
Bachelor of Science (with Honours) from James Cook University and a Master of Business Administration
(MBA) from Curtin University. Mr Stephens has held senior operational and executive roles at companies
including Newmont Mining Ltd, Western Mining Resources Ltd and Arafura Resources Limited (ASX: ARU)
where, as Managing Director until 2010, he played an instrumental role in the development of the Nolan’s
Bore Earths Project that took ARU from an early stage exploration group to one with a market
capitalisation of ~ A$400million.
33
Pursuant to the executive service agreement between Mr Stephens and the Company, Mr Stephens is
employed as Chief Executive Officer for an indefinite term on a salary of $384,000 per annum plus
statutory superannuation.
Mr Stephens is entitled to a minimum notice period of three months from the Company and the Company
is entitled to a minimum notice period of three months from Mr Stephens. 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, unless Mr Stephen’s employment was to be terminated by the Company for cause in
which case the Company is not required to make any payment. In the event of a change in control event
including a redundancy due to a successful takeover or merger of the Company, Mr Stephens would be
entitled to a payment equal to 6 months’ salary plus superannuation.
In addition, Mr Stephens is eligible to receive a short term incentive (STI) equal to up to 30% of his salary
(inclusive of superannuation), subject to the achievement of the following milestones: (a) Lindian
publicly declaring a JORC-compliant Mineral Resource (with at least 50% being in the ‘Indicated’
classification) in respect of the Kangankunde Rare Earths Project in Malawi by no later than 31 December
2023 (b) Lindian publicly releasing a [definitive/pre-feasibility] study and JORC compliant Ore Reserve in
respect of the Kangankunde Project by no later than 31 December 2024; and (c) Lindian successfully
completing the project finance required to commence commercial production at the Kangankunde
Project by no later than 31 December 2025. If some, but not all, of the above milestones, the Lindian Board
may, at its absolute discretion, pay Mr Stephens a proportion of the STI amount taking into account the
progress made towards achieving the above milestones.
Also, as part of the commencement package for Mr Stephens, the Company, on 29 August 2022 issued
the following long-term incentive (LTI) performance rights to Mr Stephens vesting in accordance with the
market based milestones below (“Executive Performance Rights”):
Milestone
No. of Performance Rights
LIN market capitalisation1 greater than $250 million
LIN market capitalisation1 greater than $500 million
LIN market capitalisation1 greater than $1,000 million
LIN market capitalisation1 greater than $1,250 million
Total
2 million LIN shares
3 million LIN shares
5 million LIN shares
5 million LIN shares
15 million LIN shares
1For the purposes of the vesting conditions, Lindian’s market capitalisation will be determined using the 30-calendar day volume weighted
average price of Lindian shares traded on the ASX, and the number of Lindian ordinary fully paid shares on issue as at the relevant time.
The Executive Performance Rights are subject to the satisfaction of performance milestones
identified above and with the terms and conditions of employment. To the extent that the hurdles
are satisfied (if at all) the Executive Performance Rights will vest and become fully paid ordinary
shares in the Company.
Other Service Agreements
The Company additionally operates through a number of long-standing service arrangements with
individuals and their associates. Geological services by contractors are performed through conduit
services agreements via local corporate services providers.
Drilling & technical services are direct contracted by the Company and whose services include
management/maintenance of the Companies property, plant & equipment.
34
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 2023 (2022: nil).
Performance Rights
On 29 August 2022, the Company issued 15 million performance rights to the incoming Chief Executive
Officer Alistair Stephens as part of an executive services agreement (refer to Service Agreements section
of the Directors Report for details).
On 13 December 2022, the Company issued a total of 18 million performance rights to its Directors
following shareholder approval gained at the Company’s annual general meeting held on 28 November
2022. The performance rights are subject to performance milestones as set out below.
Milestone
Kabunga
No. of Performance
Rights
Fazio and Occello
No. of Performance
Rights
LIN market capitalisation1 greater than $250 million
2 million LIN shares
200,000 LIN shares
LIN market capitalisation1 greater than $500 million
3 million LIN shares
300,000 LIN shares
LIN market capitalisation1 greater than $1,000 million
5 million LIN shares
500,000 LIN shares
LIN market capitalisation1 greater than $1,250 million
5 million LIN shares
500,000 LIN shares
Total
15 million LIN shares
1.5 million LIN shares
1For the purposes of the vesting conditions, Lindian’s market capitalisation will be determined using the 30-calendar
day volume weighted average price of Lindian shares traded on the ASX, and the number of Lindian ordinary fully
paid shares on issue as at the relevant time.
There were no performance rights issued to directors and other key management personnel as part of
compensation during the year ended 30 June 2022.
Options
There were no unlisted options granted over ordinary shares during the current year affecting
remuneration of directors and other 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:
2023
KMPs
Asimwe Kabunga
Giacomo Fazio
Yves Occello
Alistair Stephens 1
Balance at
the start of
the year/
appointment
12,500,000
-
-
-
12,500,000
Options
purchased
1,369,048
-
-
135,355
1,504,403
Options
converted
(12,500,000)
-
-
-
(12,500,000)
Options
expired
Vested option
Balance at
the end of
the year/
resignation Exercisable
1,369,048
-
-
135,355
1,504,403
1,369,048
-
-
135,355
1,504,403
-
-
-
-
-
Non-
exercisable
-
-
-
-
-
1: Alistair Stephens was appointed CEO effective from 8 August 2022
35
2022
KMPs
Asimwe Kabunga
Giacomo Fazio
Yves Occello
Balance at
the start of
the year/
appointment
12,500,000
-
-
12,500,000
Options
purchased
-
-
-
-
Vested option
Balance at
the end of
the year/
resignation Exercisable
12,500,000
-
-
12,500,000
12,500,000
-
-
12,500,000
-
-
-
-
Non-
exercisable
-
-
-
-
Options
granted
Options
expired
-
-
-
-
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.
2023
KMPs
Asimwe Kabunga1
Giacomo Fazio
Yves Occello
Alistair Stephens2
Balance at
the start of
the year/
appointment
90,275,000
-
-
-
90,275,000
Shares
purchased
Shares disposed
/ transferred
Performance
shares granted /
(expired)
31,328,502
-
-
1,270,710
32,599,212
-
-
-
-
-
-
-
-
-
-
Balance at
the end of
the year
121,603,502
-
-
1,270,710
122,874,212
1: Asimwe Kabunga converted 12,500,000 options having an exercise price of $0.02 in November 2022, acquired 2,738,095
shares as part of a placement at $0.021 in April 2023 and acquired a further 16,090,417 shares via an off-market transfer in
August 2022
2: Alistair Stephens was appointed CEO effective from 8 August 2022. Mr Stephens acquired 1,000,000 shares on market in
August 2022, and acquired an additional 270,710 shares as part of a placement at $0.21 in December 2022
2022
KMPs
Asimwe Kabunga6
Giacomo Fazio
Yves Occello
Balance at
the start of
the year/
appointment
90,275,000
-
-
90,275,000
Shares
purchased
Shares disposed
/ transferred
Performance
shares granted /
(expired)
-
-
-
-
-
-
-
-
-
-
-
-
Balance at
the end of
the year
90,275,000
-
-
90,275,000
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:
2023
KMPs
Asimwe Kabunga1
Giacomo Fazio2
Yves Occello2
Alistair Stephens3
Balance at
the start of
the year/
appointment
25,500,000
-
-
-
25,500,000
Rights
granted
Rights disposed
/ transferred
Performance
Rights expired
15,000,000
1,500,000
1,500,000
15,000,000
33,000,000
-
-
-
-
-
(25,500,000)
-
-
-
(25,500,000)
Balance at
the end of
the year
15,000,000
1,500,000
1,500,000
15,000,000
33,000,000
36
2022
KMPs
Asimwe Kabunga1
Giacomo Fazio
Yves Occello5
Alistair Stephens
Balance at
the start of
the year/
appointment
25,500,000
-
-
-
25,500,000
Rights
granted
Rights disposed
/ transferred
Performance
Rights expired
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Balance at
the end of
the year/
resignation
25,500,000
-
-
-
25,500,000
Other transactions with key management personnel
During the year the Company paid to Kabunga Holdings Pty Ltd consulting fees in connection with the
December 2022 Placement and March 2023 Private Placement totalling $99,200, a company associated
with Chairman Asimwe Kabunga.
During the year the Company paid consulting fees to Mechelle Stephens (spouse of Alistair Stephens) in
connection with the December 2022 Placement totalling $7,902.
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
$
$
2023
2022
2021
2020
2019
22,816
10
35,058
58,703
719
(7,780,981)
(1,165,145)
(1,458,696)
(1,862,151)
(765,688)
Loss per share
Cents
(0.86)
(0.16)
(0.21)
(0.35)
(0.21)
Share price at year end
Cents
0.36
0.12
0.021
0.011
0.011
End of remuneration report
37
INTERESTS IN THE SECURITIES OF THE COMPANY
As at the date of this report, the interests of the Directors & Key Management Personnel in the securities
of Lindian Resources Limited are:
Director
Ordinary Shares
Performance Rights
Unlisted Options over Ordinary
Shares exercisable at
30 cents each
Asimwe Kabunga
125,526,578
13,000,000
Alistair Stephens
Giacomo Fazio
Yves Occello
Trevor Matthews
Alwyn Vorster
Park Wei
3,270,710
200,000
-
-
69,444
114,797,079
13,000,000
1,300,000
1,500,000
-
-
-
2,330,586
135,355
-
-
-
-
30,452,381
RESULTS OF OPERATIONS
The net loss after taxation attributable to the members for the year to 30 June 2023 was $7,780,981 (2022:
$1,165,145) and the net assets of the Group at 30 June 2023 were $32,987,391 (2022: $7,265,826).
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
During the 2023 financial year, Lindian was focussed primarily on the acquisition and advancement of
its Kangankunde Rare Earths Project in Malawi and advancing its portfolio of world-class bauxite projects
in Guinea.
Both projects are considered to be globally significant, and world-class, and involve commodities in high
demand (rare earths, bauxite) and are leveraged to the rapidly growing electric vehicle industry.
The Company’s ambition is to have both projects in operation simultaneously.
Refer Operations Review for a detailed overview of Lindian’s projects.
38
CORPORATE
Capital Structure
On 3 August 2022, the Company issued 15,000,000 fully paid ordinary shares at $0.20 per share to raise
$3 million before costs pursuant to a private placement.
On 9 December 2022, the Company issued 73,452,381 fully paid ordinary shares at $0.21 per share to raise
$15.425 million before costs pursuant to a placement managed by Evolution Capital. Participants in the
placement received one free attaching option per every 2 shares, resulting in 36,726,191 options being
issued. The options are exercisable at $0.30 on or before 9 December 2025.
On 4 April 2023, the Company issued 32,692,306 fully paid ordinary shares at $0.26 per share to raise $8.5
million before costs pursuant to a private placement. Participants in the private placement received one
free attaching option per every 2 shares, resulting in 16,346,152 options being issued. The options are
exercisable at $0.35 on or before 3 April 2026.
On 24 April 2023, following the gaining of shareholder approval, the Company issued 2,738,095 fully paid
ordinary shares at $0.21 per share to raise $0.575 million before costs to Asimwe Kabunga, director, on
the same terms and conditions as the 9 December 2022 placement. Mr Kabunga received one free
attaching option per every 2 shares, resulting in 1,369,048 options being issued. The options are
exercisable at $0.30 on or before 9 December 2025.
On 14 June 2023, the Company issued 500,000 fully paid ordinary shares in connection with a contractual
commitment for marketing and advertising services. The inherent value of the shares was $183,000
based upon the 5-day volume weighted average price of $0.37.
Over the course of the financial year, the Company received a total of $4,497,489.22 from the conversion
of options.
Malawi – Kangankunde Acquisition
On 4 August 2022, the Company announced the acquisition of a 100% ownership interest in Rift Valley
Resource Developments Limited (Rift Valley), holder of the Kangankunde Rare Earths Project mining
licence, for purchase consideration of US$30 million.
This purchase consideration is payable in four tranches linked to the achievement of specific milestones:
Tranche 1: US$2.5 million in cash payable as a non-refundable deposit upon the parties successfully
executing a legally binding share purchase agreement, shareholders agreement and escrow deed along
with all necessary Malawi and Australian legal and regulatory requirements (including ASX Listing Rule
requirements) being satisfied with the period of exclusivity.
Tranches 2 & 3: US$7.5 million and US$10 million in cash paid on the date which is 6 months and 12
months respectively after the date the Tranche 1 payment was made.; at which date respectively 33% of
the shares on issue in Rift Valley would be transferred to the company.
Tranche 4: US$10 million payable paid on the earlier of:
i.
ii.
the commencement of commercial production from the Kangankunde Rare Earths Project, or;
48 months after the date the Tranche 1 payment was made
At which time the remaining 34% of the shares on issue in Rift Valley would be transferred to Lindian.
Pursuant to the terms of the acquisition, the Company has paid the US$2.5 million Tranche 1 Payment in
July 2022, and the US$7.5 million Tranche 2 Payment in January 2023. And post the end of the financial
39
year, during July 2023, the Company has paid the US$10 million Tranche 3 Payment. The result is that the
only tranche outstanding is Tranche 4.
MATERIAL BUSINESS RISKS
The Group is subject to general risks as well as risks that are specific to the Group and the Group’s
business activities. The following is a list of risks which the Directors believe are or potentially will be
material to the Group’s business, however, this list is not purported to be a complete list of all risks which
the Group is or may be subject to.
General Economic Risks
Economic conditions, movements in interest and inflation rates, and currency exchange rates may have
an adverse effect on the Group’s procurement and development activities, as well as its ability to fund
those activities.
Fluctuations in the price of rare earths, specifically Neodymium and
Praseodymium
The Group is exposed to fluctuations in rare earths prices and specifically the prices of Neodymium (Nd)
and Praseodymium (Pr). The Board actively monitors the price of rare earths and specifically NdPr prices
to guide decision making.
Changes in Technology
Changes in technology can impact demand for particular products and lead to an increase or decrease in
demand for certain commodities. The Board actively monitors technological changes insofar as they are
likely to affect the products that require the commodities intended to be mined by the Group to guide
decision making.
Changes in Consumer Preference
Changes in consumer preference can impact demand for particular products and lead to an increase or
decrease in demand for certain commodities. The Board actively monitors changes in consumer
preferences insofar as they are likely to affect the products that require the commodities intended to be
mined by the Group to guide decision making.
Mineral Resources
The Group’s Mineral Resources are estimates based largely on interpretations of geological data. No
assurances can be given that Resources and Reserves are accurate and that the indicated levels of rare
earths and bauxite can be recovered from any project. To reduce the risks the Group ensures estimates
are determined in accordance with the JORC Code and compiled or reviewed by qualified competent
persons.
Government Regulation
The Group’s operations and exploration are subject to extensive laws. The Group cannot give any
assurances that future amendments to current laws or regulations won’t have a material impact on its
projects. The Group monitors new laws and regulations to ensure compliance and address any impacts
on projects as early as possible.
Social, Legal and Compliance
The Group is subject to a broad range of laws, regulations and standards in jurisdictions in which it
operates. Changes in laws and regulations, and non-compliance due to inadequate systems, processes
and/or conduct could lead to losses and liabilities, reputational damage and business interruption. The
Group is committed to ensuring compliance and addressing any potential for or actual non-compliance
as early as possible.
40
Exploration and Development Risk
Future production is in part dependent on successful exploration and development activities. There is a
risk that those activities are unsuccessful.
Key Personnel Risk
The Group’s success depends upon on the continued active performance of its key personnel. If The Group
were to lose any of its key personnel or if it were unable to employ additional or replacement personnel,
its operations and financial results could be adversely affected.
Work Health and Safety
The Group’s is focussed on the safety and wellbeing of its personnel including its employees, contractors
and supplier representatives at its workplaces. Occupational accidents and health hazards can result in
injuries, legal liabilities, increased insurance costs, and operational disruptions.
Weather and Physical Climate Impacts
Extreme weather is an inherent risk for the minerals and construction industries. Periods of extreme
weather can interrupt operations, and ability to construct, which in turn may result in delays. The Group
acknowledges that its business may be impacted by the effects of climate change in both the near and
longer term, and any significant or sustained impacts could adversely affect the Group’s financial
performance and/or financial position. The Group is committed to understanding these risks and
developing strategies to manage their impact.
Environmental, Health and Safety
The Group has environmental obligations associated with each of its projects. The Group is subject to
extensive laws and regulations governing the protection and management of the health and safety of
workers, the environment, waste disposal, mine development and rehabilitation and local cultural
heritage.
The Group seeks to obtain and comply with the required permits and approvals needed for each project.
It acknowledged that any delays in obtaining these approvals may affect the Group’s operations or its
ability to continue its operations. Any non-compliance may result in regulatory fines and/or civil liability.
IT System Failure and Cyber Security Risks
Any information technology system is potentially vulnerable to interruption and/or damage from several
sources. Including but not limited to computer viruses, cyber security attacks, and other security
breaches, power, systems, internet and data network failures, and natural disasters. The Group is
committed to preventing and reducing cyber security risks through ongoing management of the risks
and continuous review.
ENVIRONMENTAL REGULATIONS AND PERFORMANCE
The Group is not aware of any breaches in relation to environmental matters.
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,
other than referred to above in the Review of Operations.
SIGNIFICANT EVENTS AFTER THE BALANCE DATE
Vesting of Class A performance Rights
On 14 July 2023, the Company announced that the performance milestone attaching to the Tranche 1
Performance Rights, namely that the Company achieves a market capitalisation of over $250,000,000
determined using the 30 calendar day Volume Weighted Average Price of its shares and the number of
shares on issue at the relevant time, had been achieved and that as such the 4,400,000 Tranche 1
41
Performance Rights on issue had now fully vested. As a result, the value attributed to the Tranche 1
Performance Rights has been fully expensed in the financial year ended 30 June 2023.
Pursuant to the terms of the Tranche One Performance Rights, the holders have the right to convert their
rights into fully paid ordinary shares in Lindian at any time up to the date of expiry of their rights.
The holders of the Tranche One Performance rights are as follows:
Holder
Position
Number
Asimwe Kabunga
Executive Chairman
2,000,000
Yves Occello
Jack Fazio
Non-executive Director
Non-executive Director
200,000
200,000
Alistair Stephens
Chief Executive Officer
2,000,000
TOTAL
4,400,000
Subsequent to year end, all of the above holders have converted their Tranche One Performance Rights
into fully paid ordinary shares, except for Yves Occello.
$35M Placement
On 20 July 2023, the Company announced the completion of a brokered managed placement of
106,060,606 fully paid ordinary shares at $0.33 per share to raise $35 million before costs.
Option Conversions and Other Movements
On 14 August 2023, Lindian announced the issue of 63,523 fully paid ordinary shares arising from the
conversion of options having an exercise price of $0.30 and an expiry date of 9 December 2025.
On 28 September 2023, Lindian announced the issue of 12,269,939 fully paid ordinary shares arising from
the conversion of options having an exercise price of $0.032 and an expiry date of 28 September 2023;
and on 29 September 2023 Lindian announced that 1,533,742 options having an exercise price of $0.032
and an expiry date of 28 September 2023 had lapsed.
Placement to Director as approved by Shareholders at General Meeting
On 16 August 2023, Lindian announced the issue of 1,934,076 fully paid ordinary shares and 961,568 free
attaching options pursuant to a placement of $575,000 by Director Asimwe Kabunga approved by
shareholders on 17 July 2023.
Kangankunde Rare Earths Project Acquisition Tranche 3 Payment
On 27 July 2023, Lindian announced the completion of the third tranche US$10.0m payment in accordance
with the terms of its acquisition of 100% of Rift Valley Resources Developments Limited (‘Rift Valley’)
which owns 100% of the globally significant Kangankunde Rare Earths Project.
A total of US$20m has now been paid to Rift Valley, with a fourth and final tranche payment of US$10m
payable upon the commencement of commercial production at Kangankunde, or by end July 2026,
whichever is the earlier. Lindian has the right, but not the obligation, to make the remaining Tranche 4
payment sooner, if Lindian so chooses.
Following the payment of the third tranche, Lindian is now the legally registered owner of 67% of the issued
share capital of Rift Valley, with the final 33% to be transferred and registered in Lindian’s name following
payment of Tranche 4, the final tranche.
42
Kangankunde Rare Earths Project Maiden Mineral Resource Estimate
On 3 August 2023, Lindian announced a maiden Mineral resource Estimate for Kangankunde Rare Earths
Project of 261 million tonnes averaging 2.19% TREO above a 0.5% TREO cutoff grade (refer ASX announcement
of 3 August 2023).
Kangankunde Monazite Concentrate Sale and Purchase Contract with Gerald Metals
SARL
On 26 September 2023, Lindian announced that it had entered into a monazite concentrate sale and
purchase contract with Gerald Metals SARL, part of the Gerald Group, under which Lindian is to supply
45,000 tonnes of monazite concentrate from its Kangankunde Stage 1 development over a 60-month
period.
Gerald Group, founded in the United States in 1962 and now headquartered in London, United Kingdom, is
the largest independent, employee-owned metals trading house, and one of the largest leading global
commodity trading companies.
In addition, Gerald Metals may elect to provide Lindian with a US$10 million Run-of-Mine finance facility
on terms to be agreed.
The key terms of the Sale and Purchase Contract are detailed in the Company’s ASX announcement of 26
September 2023.
Director appointments
On 21 August 2023, Lindian appointed Mr Trevor Matthews as an executive director and Mr Alwyn Vorster
as a non-executive director; refer ASX announcement of 22 August 2022.
And on 4 September 2023, Lindian appointed Mr Park Wei as a non-executive director; refer ASX
announcement of same date.
Other than the matters disclosed above, there have been no other matters or circumstances have arisen
in the interval between the end of the financial year and the date of this report of a material or unusual
nature likely, in the opinion of the Directors of the Company, to affect significantly the operations of the
Group, the results of those operations, or the state of affairs of the Group, in future financial years.
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.
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
Giacomo Fazio
Yves Occello
Alwyn Vorster 1
Trevor Matthews 1
Park Wei2
1: appointed 21 August 2023
2: appointed 4 September 2023
Number of Meetings
Eligible to Attend
Number of
Meetings Attended
4
4
4
-
-
-
4
3
4
-
-
-
43
SHARE OPTIONS
At 30 June 2023, there were 97,032,215 unissued ordinary shares under option (2022: 94,172,347 options).
During the year, 86,941,407 (2022: 10,000,000) options were issued, 73,771,539 options were exercised
(2022: 26,715,00) and 10,310,000 options expired (2022: nil).
Post year end, an additional 961,538 options have been issued, 12,269,939 were exercised and 1,533,742
options lapsed.
Accordingly, as at the date of this report, there are 84,126,549 unissued ordinary shares under option, as
follows:
Number
Exercise Price $
Expiry Date
17,000,000
10,000,000
7,500,000
32,318,859
17,307,690
84,126,549
0.10
0.12
0.25
0.30
0.35
29 August 2025
6 June 2025
3 August 2025
9 December 2025
3 April 2026
No option holder has any right under the options to participate in any other share issue of the company
or any other entity.
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 2023 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.
44
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 and can be found on page 82.
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 2023
45
Consolidated Statement of Profit or Loss and Other
Comprehensive Income
For the year ended 30 June 2023
Revenue
Interest income
Other income
Expenses
Depreciation
Consulting and directors’ fees
Exploration and evaluation expenses
Travel associated costs
Foreign currency losses
Investor relations and promotion
Share based payments expense
Impairment of exploration and evaluation assets
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
3
4
2023
$
13,836
8,980
(113,721)
(884,034)
(51,125)
(280,863)
(1,420,151)
(2,654,457)
(1,116,088)
-
-
(1,283,358)
(7,780,981)
-
2022
$
10
-
(3,932)
(306,600)
-
(8,499)
-
(77,702)
-
(34,394)
(8,975)
(725,053)
(1,165,145)
-
(7,780,981)
(1,165,145)
(140,733)
(140,733)
260,431
260,431
(7,921,714)
(904,714)
(7,733,881)
(47,100)
(7,780,981)
(1,162,575)
(2,570)
(1,165,145)
(7,887,380)
(34,334)
(7,921,714)
(924,391)
19,677
(904,714)
Loss per share attributable to owners of Lindian
Resources Limited
Basic and diluted loss per share (cents per share)
18
(0.83)
(0.16)
The accompanying notes form part of these financial statements.
46
Consolidated Statement of Financial Position
As at 30 June 2023
Note
2023
$
2022
$
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
Amount due under contract
Borrowings
Total current liabilities
Non-Current Liabilities
Amount due under contract
Total non-current liabilities
Total liabilities
Net assets
Equity
Share capital
Reserves
Accumulated losses
Non-controlling interests
Total equity
5
6
7
8
9
10
11
12
11
13
14
15
16
7,616,206
138,464
40,333
7,795,003
56,483,333
18,051
56,501,384
64,296,387
1,084,915
15,112,041
-
16,196,956
15,112,040
15,112,040
31,308,996
32,987,391
2,177,922
31,472
21,337
2,230,731
5,157,090
105,429
5,262,519
7,493,250
218,449
-
8,975
227,424
-
-
227,424
7,265,826
69,179,051
13,254,405
(49,825,691)
32,607,765
379,626
32,987,391
38,964,460
9,979,216
(42,091,810)
6,851,866
413,960
7,265,826
The accompanying notes form part of these financial statements.
47
Consolidated Statement of Cash Flows
For the year ended 30 June 2023
Note
2023
$
2022
$
Cashflows from Operating Activities
Government incentive received
Payments to suppliers and employees
Interest received
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
Share issue costs
Net cash from financing activities
25
8
9
13
12
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
5
(3,091,013)
13,693
(3,077,320)
-
(1,282,351)
10
(1,282,341)
(21,765,038)
(26,343)
(21,791,381)
(563,419)
-
(563,419)
31,997,490
-
(1,690,499)
30,306,991
5,438,290
2,177,922
(6)
7,616,206
3,274,300
300,000
(60,000)
3,514,300
1,677,515
500,761
(354)
2,177,922
The accompanying notes form part of these financial statements.
48
Consolidated Statement of Changes in Equity
Consolidated Statement of Changes in Equity
For the year ended 30 June 2023
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 2022
Loss for the year
Other comprehensive loss
38,964,460
-
-
(42,091,810)
(7,733,881)
-
4,106,626
-
-
5,609,570
-
-
263,020
-
(153,499)
6,851,866
(7,733,881)
(153,499)
413,960
(47,100)
12,766
7,265,826
(7,780,981)
(140,733)
Total comprehensive loss
-
(7,733,881)
-
-
(153,499)
(7,887,380)
(34,334)
(7,921,714)
Transactions with owners in their
capacity as owners
Shares issued
Exercise of options
Costs of share issue
Share based payments
27,683,000
4,497,490
(1,965,899)
-
-
-
-
-
-
-
-
-
-
-
-
3,428,688
-
-
-
-
27,683,000
4,497,490
(1,965,899)
3,428,688
-
-
-
-
27,683,000
4,497,490
(1,965,899)
3,428,688
At 30 June 2023
69,179,051
(49,825,691)
4,106,626
9,038,258
109,521
32,607,765
379,626
32,987,391
The accompanying notes form part of these financial statements.
49
Consolidated Statement of Changes in Equity
For the year ended 30 June 2022
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 2021
Loss for the year
Other comprehensive loss
Total comprehensive loss
35,450,160
-
-
-
(40,929,235)
(1,162,575)
-
(1,162,575)
4,106,626
-
-
-
5,609,570
-
-
-
20,085
-
242,935
242,935
4,257,206
(1,162,575)
242,935
(919,640)
399,034
(2,570)
17,496
14,926
4,656,240
(1,165,145)
260.431
(904,714)
Transactions with owners in their
capacity as owners
Shares issued
Exercise of options
Options to be exercised –
cash received
Cost of share issue
Share based payments
At 30 June 2022
3,080,000
554,300
-
-
-
-
-
-
-
-
3,080,000
554,300
-
-
3,080,000
554,300
-
(120,000)
-
38,964,460
-
-
-
(42,091,810)
-
-
-
4,106,626
-
-
-
5,609,570
-
-
-
263,020
-
(120,000)
-
6,851,866
-
-
-
413,960
-
(120,000)
-
7,265,826
The accompanying notes form part of these financial statements.
50
Notes to the Financial Statements
Summary of Significant Accounting Policies
1.
This financial report covers the consolidated entity of Lindian Resources Limited (“Lindian Resources” or
“the Company”) and its controlled entities (“the Group”).
Lindian Resources is a public company, incorporated and domiciled in Australia, limited by shares
whose shares are publicly traded on the Australian Securities Exchange.
Basis of Preparation
(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 financial report has been prepared on an accruals 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.
For the purposes of preparing these consolidated financial statements, the Company is a for-profit entity.
This financial report is presented in Australian dollars.
The financial report was authorised for issue in accordance with a resolution of the Directors dated
29 September 2023.
Going Concern
(b)
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.
As disclosed in the Statement of Comprehensive Income, the Group recorded a net loss after tax for the
year ended 30 June 2023 of $7,780,981 (2022: $1,165,145) and as disclosed in the Statement of Cash Flows
recorded net cash outflows from operating activities of $3,077,320 (2022: $1,282,341), net cash outflows
from investing activities of $21,791,381 (2022: $563,419), and net cash inflows from financing activities of
$30,306,991 (2022: $3,514,300).
At 30 June 2023, the cash and cash equivalents balance was $7,616,206 (2022: $2,177,922). And, post year
end, on 20 July 2023, the Company announced the successful completion of a brokered placement of
106.06 million fully paid ordinary shares at $0.33 per share to raise $35 million before costs. Funds raised
from the Placement and existing cash reserves allowed Lindian to announce on 27 July 2023 that it had
completed the third tranche payment of US$10m in accordance with the terms of acquisition of 100% of
Rift Valley Resources Developments Limited, owner of world class Kangankunde rare earths project in
Malawi.
Lindian has prepared a cash flow forecast, which indicates that it has 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.
Based on the cash flow forecasts, the directors are satisfied that the going concern basis of preparation
is appropriate.
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. Australian Accounting Standards include Australian equivalents to International Financial
Reporting Standards (AIFRS). Compliance with AIFRS ensures that the consolidated financial report,
comprising the financial statements and notes thereto, complies with the International Financial
Reporting Standards (IFRS).
51
Basis of Consolidation
(d)
The consolidated financial statements comprise the financial statements of Lindian Resources and its
subsidiaries as at 30 June each year. Subsidiaries are all those entities (including special purpose
entities) over which the Company has control.
A controlled entity is any entity over which Lindian Resources has the power to control the financial and
operating policies of the entity so as to obtain benefits from its activities.
Details of the controlled entities are included in Note 17 to the financial statements.
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.
Revenue
(e)
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.
(f)
Foreign Currency Translation
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 17.
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.
52
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.
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.
53
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.
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.
54
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.
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.
55
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.
Goods and Services Tax (“GST”)
(o)
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.
Issued Capital
(p)
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.
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.
Earnings Per Share
(r)
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.
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.
56
Share based payment transactions
(s)
The Group provides benefits to individuals 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.
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
(t)
When required by Accounting Standards, comparatives have been adjusted to conform to changes in
presentation for the current financial year.
Fair Value Measurement
(u)
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.
57
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
(v)
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.
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 an appropriate valuation methodology, taking into account
the terms and conditions upon which the instruments were granted.
Borrowings
(w)
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.
58
Business Combinations
(x)
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.
Adoption of New and Revised Standards
(y)
Changes in accounting policies on initial application of Accounting Standards
In the year ended 30 June 2023, 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. As a result of this review the Directors have determined that there is no material impact
of the new and revised Standards and Interpretations of the Group therefore, no material change is
necessary to Group accounting policies.
Application of new and revised Accounting Standards and Interpretations not yet effective
The Directors have also reviewed all new and revised Standards and Interpretations issued by the AASB
but are not yet effective for the year ended 30 June 2023. As a result of this review the Directors have
determined that there is no impact, material or otherwise, of the new and revised Standards and
Interpretations of the Group therefore, no change is necessary to Group accounting policies.
Parent Entity Information
(z)
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 26.
59
Segment Information
2.
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 2023
Revenue
Interest income
Other income
Total segment revenue
Expenditure
Depreciation expense
Consulting and directors’ fees
Exploration and evaluation
expenses
Travel associated costs
Foreign exchange losses
Investor relations and
promotion
Share based payments
Other expenses
Total segment expenditure
Tanzania
$
Guinea
$
Malawi
$
Australia
$
Total
$
-
-
-
-
196
9,792
2,063
-
-
-
60,221
72,272
-
-
-
-
52,618
41,333
68,823
-
143
-
143
-
-
-
13,693
8,980
22,673
13,836
8,980
22,816
113,721
831,220
2,001
-
207,976
1,420,151
113,721
884,034
51,125
280,863
1,420,151
-
-
2,654,457
2,654,457
-
168,120
330,894
-
119,476
121,477
1,116,088
935,541
1,116,088
1,283,358
7,279,154
7,803,797
Loss before income tax
(72,272)
(330,894)
(121,334)
(7,256,481)
(7,780,981)
SEGMENT ASSETS
Cash and cash equivalents
Property, plant & equipment
Exploration & evaluation
Other assets
Segment operating assets
Total segment assets
SEGMENT LIABILITIES
Accounts Payable
Acquisition liability
Segment operating liabilities
Total segment liabilities
Movement in non-current
assets
35,274
-
-
410
35,684
35,684
7,681
-
7,681
7,681
17,214
-
4,504,740
23,277
157,109
-
51,978,593
41,682
7,406,609
18,051
-
113,428
7,616,206
18,051
56,483,333
178,797
4,545,231
52,177,384
7,538,088
64,296,387
4,545,231
52,177,384
7,538,088
64,296,387
29,885
-
157,405
30,224,081
889,944
-
1,084,915
30,224,081
29,885
30,381,486
889,944
31,308,996
29,885
30,381,486
889,944
31,308,996
-
8,855
51,211,959
18,051
51,238,865
60
Tanzania
$
Guinea
$
Malawi
$
Australia
$
Total
$
30 June 2022
Revenue
Interest income
Other income
Total segment revenue
Expenditure
Depreciation expense
Impairment of exploration
and evaluation assets
Finance costs
Other expenses
Total segment expenditure
-
-
-
-
-
34,394
-
11,970
46,364
-
-
-
-
-
-
-
23,239
23,239
-
-
-
-
-
-
-
-
-
-
-
10
-
10
-
10
-
10
3,932
3,932
-
34,394
8,975
1,082,645
1,095,552
8,975
1,117,854
1,165,155
(1,095,542)
(1,65,145)
Loss before income tax
(46,364)
(23,239)
SEGMENT ASSETS
Property, plant & equipment
Exploration & evaluation
Other assets
Segment operating assets
Total segment assets
SEGMENT LIABILITIES
Segment operating liabilities
Total segment liabilities
Movement in non-current
assets
3.
Other Expenses
-
-
4,835
4,835
4,835
7,970
7,970
105,429
4,085,186
285,370
4,475,986
4,475,986
-
766,634
-
766,634
766,634
-
-
2,245,795
105,429
4,851,820
2,536,001
2,245,795
7,493,250
2,245,795
7,493,250
-
-
-
-
219,455
219,455
227,424
227,424
-
733,376
103,782
(3,934)
833,224
Accounting, company secretarial, audit and tax fees
Insurance
Legal fees
Shareholder meeting, listing and share registry costs
Office related costs
Salary and superannuation
Other
Total other expenses
2023
$
386,918
93,806
134,257
193,548
24,564
368,229
82,036
1,283,358
2022
$
254,889
45,145
106,762
76,255
124
-
241,878
725,053
61
4.
Income Tax
Income tax expense
Major component of tax expense/(benefit) for the year:
Current tax
Deferred tax
2023
$
2022
$
-
-
-
-
-
-
-
-
Numerical reconciliation between aggregate tax expense recognised in the statement of comprehensive
income and tax expense calculated per the statutory income tax rate.
2023
$
2022
$
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
(7,780,981)
(1,165,145)
Tax at the group rate of 30% (2020: 30%)
Non-deductible expenses
Non-assessable income
Movement in unrecognised temporary differences
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
2023
$
(2,341,614)
(2,204,021)
(227,957)
365,550
-
-
-
2022
$
(341,696)
382,351
-
(31,222)
(9,433)
-
-
4,845,440
396,621
5,242,061
4,676,069
168,665
4,844,734
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
62
5.
Cash and Cash Equivalents
Cash at bank
2023
$
2022
$
7,616,206
7,616,206
2,177,922
2,177,922
Cash at bank earns interest at floating rates based on daily bank deposit rates.
6.
Trade and Other Receivables - Current
GST receivable
Other receivable
2023
$
77,602
60,862
138,464
2022
$
6,000
25,472
31,472
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.
7.
Prepayments
Prepaid expenditure
2023
$
40,333
40,333
2022
$
21,337
21,337
8.
Deferred Exploration and Evaluation Expenditure
Exploration and evaluation phase – at cost
At beginning of the year
Acquisition – Kangankunde Rare Earth Project
Exploration expenditure during the year
Impairment expense1
Foreign exchange movement
Total exploration and evaluation
2023
$
2022
$
5,157,090
43,282,548
8,043,695
-
-
56,483,333
4,319,932
-
563,419
(34,394)
308,132
5,157,090
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.
63
The breakdown of deferred exploration and evaluation expenditure by Project at the end of the current
and previous year is reconciled as follows:
Exploration and evaluation phase – at cost
Kangankunde Rare Earth Project, Malawi
Gaoual Bauxite Project, Guinea
Lelouma Bauxite Project, Guinea
Woula Bauxite Project Guinea
Total exploration and evaluation
9.
Plant and Equipment
Plant and equipment – at cost
Accumulated depreciation
Net book amount
Balance at the beginning of the year
Acquisitions
Depreciation expense
Balance at the end of the year
10.
Trade and Other Payables
Trade payables and accruals
2023
$
2022
$
51,978,593
1,847,872
1,647,421
1,009,447
56,483,333
2023
$
164,878
(146,827)
18,051
105,429
26,343
(113,721)
18,051
766,634
1,847,871
1,594,108
948,477
5,157,090
2022
$
138,536
(33,107)
105,429
109,362
-
(3,933)
105,429
2023
$
2022
$
1,084,915
1,084,915
218,449
218,449
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.
64
11.
Amount Due Under Contract
Acquisition Liability – Kangankunde Project 1
Disclosed as:
Current liability
Non-current liability
2023
$
2022
$
30,224,081
30,224,081
2023
$
15,112,041
15,112,040
30,224,081
2022
$
-
-
-
-
-
Reconciliation of amounts due under contract at 30 June 2023 is as follows:
Note
$
Liability on acquisition of Kangankunde Project (US$30,000,000)
Less: Tranche 1 Payment (US$2,500,000)
Less: Tranche 2 Payment (US$7,500,000)
Foreign exchange losses
30
Total deferred exploration and evaluation expenditure
43,282,548
(3,552,050)
(10,852,045)
1,345,628
30,224,081
1. As at 30 June 2023, Lindian had two further tranches to pay in relation to its acquisition of 100%
of RVRD, the 100% owner of the Kangankunde Project.
Tranche 3 of US$10.0 million (A$15,112,041 based on the USD:AUD exchange rate prevailing at 30
June 2023 of USD1 : AUD0.66172) was due for payment at the end of July 2023. Post 30 June 2023,
Tranche 3 has been paid.
The final tranche (Tranche 4) of US$10.0 million (A$15,112,041 based on the USD:AUD exchange rate
prevailing at 30 June 2023 of USD1 : AUD0.66172) is due for payment in July 2026 or upon
commercial production being achieved. Lindian expects to enter commercial production during
calendar year 2024. No discount has been applied due to the fact that Lindian expects to make
payment during 2024.
Following the payment of the third tranche, Lindian is now the legally registered owner of 67% of the issued
share capital of Rift Valley, with the final 33% to be transferred and registered in Lindian’s name following
payment of Tranche 4, the final tranche.
65
12.
Borrowings
Short term debt
Balance at the beginning of the year
Drawdown of loan from Chairman related entity
Repayment of borrowings
Finance Charges
Repayment of finance charges
Balance at the end of the year
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
2023
$
2022
$
8,975
-
-
-
(8,975)
-
2023
$
8,975
(8,975)
-
-
-
-
-
300,000
(300,000)
8,975
-
8,975
2022
$
-
-
8,975
300,000
(300,000)
8,975
On 29 October 2021, the Company announced that it had entered on 21 October 2021 into an unsecured
$300,000 loan facility on an arms-length basis with Kabunga Holdings Pty Ltd, an entity associated with
the Chairman for a two (2) month term maturing on 21 December 2021 and interest payable at 7% per
annum equivalent (non-compounding). On 25 November 2021, the Company announced that loan term
had been extended by mutual agreement until the date of shareholder approval for issuance of 10,000,000
shares at 3 cents per share to Kabunga Holdings Pty Ltd by way of repayment of the loan in full.
Shareholder approval was obtained, interest repaid and the shares issued/loan matured on 29 March
2022.
Share Capital
13.
a) Share capital
2023
Number
2023
$
2022
Number
2022
$
Ordinary shares fully paid
1,027,405,092
1,027,405,092
69,179,051
69,179,051
829,250,771
829,250,771
38,964,460
38,964,460
66
b) Movement in shares on issue
2023
number
2023
$
2022
number
2022
$
Balance at the beginning of the year
Shares issued – placement Dec-2021
Shares issued to Chairman in lieu of loan
repayment – Mar- 2022
Shares issued – placement Jun-2022
Shares issued – placement Aug-2022
Shares issued – placement Dec-2022
Shares issued – placement Apr-2023
Shares issued – in lieu of invoice for
services to third party
Exercise of options
Cash received for option exercise
Less fundraising costs
829,250,771
-
38,964,460
-
747,935,771
24,000,000
35,450,160
720,000
-
-
10,000,000
300,000
-
15,000,000
76,190,476
32,692,306
-
3,000,000
16,000,000
8,500,000
20,000,000
-
-
-
2,000,000
-
-
-
500,000
183,000
600,000
60,000
72,771,539
1,000,000
-
4,497,490
-
(1,965,899)
26,715,000
-
-
534,300
20,000
(120,000)
Balance at the end of the year
1,027,405,092
69,179,051
829,250,771
38,964,460
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
$32,987,391 at 30 June 2023 (2022: surplus of $7,265,826). The Group manages its capital to ensure its
ability to continue as a going concern and to optimise returns to its shareholders.
e) Share options
At 30 June 2023, there were 97,032,215 unissued ordinary shares under option (2022: 94,172,347 options).
During the year, 86,941,407 (2022: 10,000,000) options were issued, 73,771,539 options were exercised
(2022: 26,715,00) and 10,310,000 options expired (2022: nil).
Post year end, an additional 961,538 options have been issued, 12,269,939 were exercised and 1,533,742
options lapsed.
Accordingly, as at the date of this report, there are 84,126,549 unissued ordinary shares under option, as
follows:
Number
Exercise Price $
Expiry Date
17,000,000
10,000,000
7,500,000
32,318,859
17,307,690
84,126,549
0.10
0.12
0.25
0.30
0.35
29 August 2025
6 June 2025
3 August 2025
9 December 2025
3 April 2026
No option holder has any right under the options to participate in any other share issue of the company
or any other entity.
67
The movement in options is set out below.
At 1 July
Options expired
Options issued
Options exercised during the period
At 30 June
2023
number
2022
number
94,172,347
(10,310,000)
86,941,407
(73,771,539)
97,032,215
110,887,347
-
10,000,000
(26,715,000)
94,172,347
f) Performance Shares & Rights
At 30 June 2023, there were 33,000,000 performance shares and rights on issue (2022: 30,000,000
performance shares and rights).
The movement in performance shares and rights are set out below. No performance shares or rights
vested during the period.
At beginning of period – Class B Performance shares
At beginning of period – Performance Rights
Issue of Performance Rights
Expiry of Class B Performance Shares
At end of period
Number vested and capable of being converted
2023
$
2022
$
30,000,000
-
33,000,000
(30,000,000)
33,000,000
4,400,000
30,000,000
-
-
-
30,000,000
-
Each Performance Share and Each Performance Right converts into 1 share for nil consideration.
The details of the performance rights issued during the year are as follows:
Type
Performance Rights
– Tranche 1
Performance Rights
– Tranche 12
Performance Rights
– Tranche 3
Performance Rights
– Class 4
Total Number
Number
Expiry
4,400,000
5 years from date of issue
6,600,000
5 years from date of issue
11,000,000
5 years from date of issue
11,000,000
5 years from date of issue
33,000,000
Vesting conditions
Company achieves a market
capitalisation of over $250M 1
Company achieves a market
capitalisation of over $50M 1
Company achieves a market
capitalisation of over $1.0Bn 1
Company achieves a market
capitalisation of over $1.25Bn 1
1: calculated as 30day VWAP multiplied by the number of Shares on Issue at the relevant time
68
During the year, performance rights were issued to each of the Directors (Kabunga, Occello and Fazio) and
to the Company’s Chief Executive Officer, Alistair Stephens, as follows:
Tranche Vesting condition
Kabunga
number
Occello
number
Fazio
number
Stephens
number
Total
number
1
2
3
4
Company achieves a market capitalisation of over $250M 1
2,000,000
200,000
200,000
2,000,000
4,400,000
Company achieves a market capitalisation of over $500M 1
3,000,000
300,000
300,000 3,000,000
6,600,000
Company achieves a market capitalisation of over $1.0Bn 1
5,000,000
500,000
500,000
5,000,000
11,000,000
Company achieves a market capitalisation of over $1.25Bn 1 5,000,000
500,000
500,000
5,000,000
11,000,000
Total number - at end of period
15,000,000
1,500,000 1,500,000 15,000,000 33,000,000
1: calculated as 30day VWAP multiplied by the number of Shares on Issue at the relevant time
During the course of FY23, the vesting condition relating to the 4,400,000 Tranche 1 Performance Rights
was achieved and as such these rights are fully vested. Accordingly, a share-based payments expense
has been recognised during the year ended 30 June 2023 in relation to this class of performance rights.
Lindian’s directors have determined that it is likely that the vesting condition relation to the Tranche 2
Performance Rights issued to each of the Directors and to the Chief Executive Officer will be achieved and
the rights will vest based upon the market capitalisation which is circa $270m as at the date of this
report. Accordingly, a share-based payments expense has been recognised during the year ended 30 June
2023 in relation to this class of performance rights for a proportion of the fair value.
Lindian’s directors have determined that it is too early to form a view of the likely achievement or not of
the vesting conditions in relation to the Tranche 3 and Tranche 4 Performance Rights issued to each of
the Directors and to the Chief Executive Officer. Accordingly, no expense has been recognised during the
year ended 30 June 2023 in relation to these classes of performance rights.
The Tranche 1 and Tranche 2 Performance Rights issued to each of the Directors have been valued on the
date it was resolved that they be issued, subject to shareholder approval, with the following factors and
assumptions used to determine their fair value:
Issue
Tranche Number of
Date
Fair Value
per Right
Total fair
value
Expiry
Date
Grant
date
28 Nov 2022
28 Nov 2022
13 Dec 2022 13 Dec 2027
13 Dec 2022 13 Dec 2027
$0.24
$0.24
$576,000
$864,000
$1,440,000
Share Price
on Grant
Date
$0.24
$0.24
Rights
Issued
2,400,000
3,600,000
6,000,000
1
2
Total
The fair value of the equity-settled performance rights of $1,440,000 is expected to be expensed as
follows:
Tranche Total fair
1
2
Total
FY23
value
$576,000 $576,000
-
$864,000 $94,633 $172,705
-
$173,179
$1,440,000 $670,633 $172,705 $173,179
FY24
FY25
FY26
-
$172,705
$172,705
FY27
-
$172,705
$172,705
FY28
-
$78,073
$78,073
The Tranche 1 and Tranche 2 Performance Rights issued to Lindian’s Chief Executive Officer, Alistair
Stephens, upon commencement of his employment have been valued on that date, with the following
factors and assumptions used to determine their fair value:
Grant
Class Number of
date
Fair Value
per Right
Total fair
value
Expiry
Date
Issue
Date
Rights
Issued
2,000,000 3 Aug 2022 29 Aug 2022 29 Aug 2027
3,000,000 3 Aug 2022 29 Aug 2022 29 Aug 2027
5,000,000
A
B
Total
Share Price
on Grant
Date
$0.175
$0.175
$0.175
$0.175
$350,000
$525,000
$875,000
69
Fair value of the equity-settled performance rights of $875,000 is expected to be expensed as follows:
FY24
FY25
FY26
FY27
FY28
Class
Total fair
FY23
value
$350,000
$350,000
$525,000
$95,455
$875,000 $445,455
A
B
Total
Note that the milestone relating to the Tranche 1 performance rights issued to Lindian’s Directors
(Kabunga, Occello and Fazio) and Chief Executive Officer, Alistair Stephens, was achieved during the
course of the financial year ended 30 June 2023. Accordingly, the fair value of the Tranche 1 Performance
rights have been fully expensed during FY23.
-
-
-
$104,942
$104,943
$105,230
$104,942 $105,230 $104,943
-
$104,942
$104,942
-
$9,488
$9,488
g) Shares & Options Issued to Others
In August 2022, the Company issued 22,000,000 unlisted options having an exercise price of $0.10 and a
term of 3 years in relation to investor relations support and assistance.
The fair value of these share options was estimated as at the date of the grant using the Black and Scholes
valuation method taking into account the terms and conditions upon which the options were granted, as
follows:
Number
Dividend yield
Expected volatility
Risk-free interest rate
Expected life of options
Market price
Exercise price
Value per option
Assumptions
22,000,000
0.00%
100%
3.52%
3 years
$0.135
$0.10
$0.0926
The fair value of the share options calculated in accordance with the above assumptions is $2,037,200.
In December 2022, the Company issued 3,000,000 unlisted options having an exercise price of $0.30 and
a term of 3 years to Evolution Capital who acted as Lead Manager to the December 2022 Placement.
The fair value of these share options was estimated as at the date of the grant using the Black and Scholes
valuation method taking into account the terms and conditions upon which the options were granted, as
follows:
Number
Dividend yield
Expected volatility
Risk-free interest rate
Expected life of options
Market price
Exercise price
Value per option
Assumptions
3,000,000
0.00%
100%
3.52%
3 years
$0.175
$0.30
$0.0918
The fair value of the share options calculated in accordance with the above assumptions is $275,400.
In June 2023, the Company issued 500,000 fully paid shares in relation to marketing and advertising
services. The shares were valued according to the five-day volume weighted average price of the
Company’s shares immediately preceding their issue, being a share price of $0.366 (36.6c) , equating to
$183,000.
70
14. 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
Share based payments - Directors
Share based payments – Chief Executive Officer
Share issue costs
Investor relations fees
Balance at the end of the year
2023
$
9,038,258
4,106,626
109,521
13,254,405
2022
$
5,609,570
4,106,626
263,020
9,979,216
2023
$
2022
$
5,609,570
5,609,570
670,633
445,455
275,400
2,037,200
9,038,258
-
-
-
-
5,609,570
The share-based payment reserve is used to record the fair value of securities issued as part of
compensation.
Option reserve
Balance at the beginning of the year
Balance at the end of the year
2023
$
2022
$
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.
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.
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
2023
$
2022
$
263,020
20,085
(153,499)
109,521
242,935
263,020
71
15.
Accumulated Losses
2023
$
2022
$
At beginning of the year
Loss for the year attributable to owners of Lindian Resources
Limited
Balance at the end of the year
42,091,810
40,929,235
7,733,881
1,162,575
49,825,691
42,091,810
Non-controlling Interests
16.
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 Bauxite Holdings Limited.
Opening balance
Gain / (Loss) allocated to non-controlling interest
Other comprehensive loss allocated to non-
controlling interest
Closing balance
2023
$
413,960
(47,100)
12,766
379,626
2022
$
399,034
(2,570)
17,496
413,960
Investments in Subsidiaries
17.
The consolidated financial statements at 30 June 2023 incorporate the assets, liabilities and results of
the following subsidiaries:
Lindian Rare Earths Limited
Rift Valley Resource Developments Pty Ltd 1
Lindian Mining Services Limited 2
West African Exploration Pty Ltd
West African Exploration Cameroon Ltd
Tangold Pty Ltd
Hapa Gold Limited
Batan Australia Pty Ltd
East Africa Bauxite Limited
Lindian Guinea SARL
Woula Natural Resources SARL
Bauxite Holdings Limited
Lelouma Bauxite Guinea SARL
Terminal Logistics & Holdings Pte Ltd
Northern Rail Pte Ltd
Guinea Bauxite Pty Ltd
KB Bauxite Guinea SARL
Country of
Incorporation
United Kingdom
Malawi
Malawi
Australia
Cameroon
Australia
Tanzania
Australia
Tanzania
Guinea
Guinea
Mauritius
Guinea
Singapore
Singapore
Australia
Guinea
2023
%
2022
%
100%
100%
100%
100%
100%
100%
100%
51%
51%
100%
61%
75%
75%
75%
100%
51%
51%
-
-
-
100%
100%
100%
100%
51%
51%
100%
61%
75%
75%
75%
100%
51%
51%
1 Lindian has acquired 100% of Rift Valley, payable in tranches. As at 30 June 2023 ,Lindian has paid Tranches 1 and 2 totalling
US$10m and 33% of the issued share capital in Rift Valley had been legally transferred into its name. Post year end, Lindian
has paid Tranche 3 of US$10m and a further 34% of the issued share capital of Rift Valley, for a total of 67%, is now registered
in its name. Upon Tranche 4, the final tranche, of amount US$10m, being paid the remaining 33% of issued capital in Rift
Valley will be transferred to Lindian.
2Wholly owned newly incorporated entities during the financial year.
72
18.
Loss per Share
Basic earnings per share (cents per share)
Diluted earnings per share (cents per share)
Weighted average number of ordinary shares used in
calculating basic and diluted earnings / (loss) per
share (*):
2023
$
(0.83)
(0.83)
2022
$
(0.16)
(0.16)
2023
Number
2022
Number
933,481,941
767,932,659
As at 30 June 2023, there are 97,032,215 Options which were in the money based on the closing share
price at 30 June 2023 of $0.36 and 4,400,000 Performance Rights which had vested. These have been
included for the purposes of calculating the weighted average number of shares for diluted earnings per
share. There was no impact from the unissued shares (options and performance rights) outstanding at
30 June 2022 on the loss per share calculation because they are antidilutive.
Exploration Project Expenditure Commitments
19.
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
2023
$
18,600
32,500
51,100
2022
$
143,260
-
143,260
Kangankunde Project (Malawi)
There are no expenditure obligations other than payment of annual licence fees required in order to keep
the licences in good standing, which the Group is committed to doing.
Gaoual Bauxite Project (KB Bauxite Guinea SARL)
The Company has 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
2023, the Group has spent $1,847,872 (2022: $1,847,871) on the Gaoual Bauxite Project.
Lelouma Bauxite Project and Woula Bauxite Project
The Group is committed to continuing to maintain its interest in the Lelouma and Woula Bauxite Projects
and will continue to meet its share of tenement costs to ensure that the tenements remain in good
standing.
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 2023, the Group has spent $567,147 (2022: $567,147) on the Tanzanian Bauxite Projects.
73
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 2023, to elect to continue to sole fund the Project as described above to acquire the Stage 2
interest.
If the Group chooses 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 2023 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
20.
The auditor of Lindian Resources Limited is HLB Mann Judd (2022: 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
2023
$
2022
$
42,750
42,750
23,750
23,750
Key Management Personnel Disclosures
21.
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)
Total remuneration
2023
$
808,962
1,116,088
47,247
1,972,297
2022
$
306,600
-
-
306,600
The Group has liabilities of $43,022 for unpaid Key Management Personnel remuneration at 30 June 2023
(2022: $27,105).
Related Party Disclosures
22.
The ultimate parent entity is Lindian Resources Limited. Refer to note 17 for list of all subsidiaries within
the Group.
During the year, the Company paid to Kabunga Holdings Pty Ltd consulting fees in connection with the
December 2022 Placement and March 2023 Private Placement totalling $99,200, a company associated
with Chairman Asimwe Kabunga.
Also during the year, the Company paid to Mechelle Stephens, spouse of Alistair Stephens, consulting fees
in connection with the December 2022 Placement totalling $7,902.
There were no other related party transactions with key management personnel during the year.
74
Financial Risk Management
23.
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
Short term debt
2023
$
2022
$
7,616,206
138,464
2,177,922
31,422
1,084,915
30,224,081
218,449
-
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 2023, all
trade and other payables and borrowings are expected to contractually mature within 30 days.
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.
75
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.
2023
$
2022
$
Cash and cash equivalents
7,616,206
2,177,922
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 2023, 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 2023.
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.
Share Based Payments
24.
e) Recognised share-based payment transactions
Share based payment transactions recognised either as operating expenses in the statement of
comprehensive income, or capital raising expenses in equity as follows:
Operating expenses
Share based payments – key management persons
Other Expenses – investor relations 1
Other Expenses – marketing & advertising services,2
Other Expenses – corporate advisor services,3
Borrowings
Repayment of short-term borrowings
Equity
Issued capital4
TOTAL
2023
$
1,116,088
2,037,200
183,000
-
3,336,288
2022
$
-
-
120,000
120,000
-
-
(300,000)
(300,000)
275,400
275,400
3,611,688
300,000
300,000
120,000
1. On 9 August 2022, Lindian issued 22,000,000 options to VW Accounting in relation to the provision of investor relations services.
2. On 14 June 2023, Lindian issued 250,000 fully paid ordinary shares to each of Frere & Associates Pty Ltd and Wedge
Communications & Marketing Pty Ltd in relation to marketing and advertising services.
3. On 6 June 2022, Lindian issued 600,000 shares to Japan & China Holdings Pty Ltd in consideration of investor relations services.
4. On 9 December 2022, Lindian issued 3,000,000 options to Evolution Capital for lead manager services in relation to Dec-22
placement.
76
Options issued as part of share-based payments during the year ended 30 June 2023 were as follows:
Grant Date Expiry Date Fair Value
at
Valuation
Date
Exercise
Price
Number at
issued
Number
exercised
29 Aug 22
29 Aug 25
$0.0926
$0.10 22,000,000
9 Dec 22
9 Dec
$0.0918
$0.30
3,000,000
Total
25,000,000
(5,000,000
)
(3,000,000
)
(8,000,000
)
Number at
30 June
2023
Number
vested /
exercisable
at 30 June
2023
17,000,000
17,000,000
-
-
17,000,000
17,000,000
There were no options issued as part of share-based payments during the year ended 30 June 2022.
The movement in options on issue issued as a share based payment during the current and previous year
is reconciled as follows:
Options
Weighted
Average
Exercise Price
Weighted
Average Fair
Value
Options outstanding at 30 June 2021
7,000,000
number
Issued during the year
Exercised during the year
Options outstanding at 30 June
2022
Issued during the year
Exercised during the year
Options outstanding at 30 June
2023
-
(2,000,000)
5,000,0001
25,000,000
(13,000,000)
17,000,000
$
$0.020
-
$0.020
$0.02
$0.12
$0.12
$0.10
$
$0.0150
-
$0.0162
$0.0145
$0.09
$0.06
$0.0926
Weighted
Average
Contractual
Life
days
508
-
-
143
1,095
739
791
1represents options issued to the Company’s broker Baker Young on 21 November 2019 as announced in the 2019 AGM notice
of meeting.
25.
Cash Flow Information
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 expense
Impairment of exploration and evaluation assets
Change in assets and liabilities
Trade and other receivables
Trade and other payables
Net cash outflow from operating activities
2023
$
2022
$
(7,780,981)
(1,165,145)
113,721
1,420,151
3,336,288
-
3,932
(47,347)
34,394
(106,998)
(59,501)
(20,507)
(87,669)
(3,077,320)
(1,282,341)
77
Parent Entity Information
26.
The following details relate to the parent entity, Lindian Resources Limited, as at 30 June 2023. The
information presented here has been prepared using consistent accounting policies as presented in
Note 1.
Current assets
Non-current assets
Total assets
Current liabilities
Non-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
2023
$
7,519,485
56,581,377
64,100,862
16,001,431
15,112,040
31,113,471
32,987,391
2022
$
2,226,702
4,888,316
7,115,018
210,053
-
210,053
6,904,965
69,179,051
13,144,883
(49,336,543)
38,958,461
9,716,196
(41,769,692)
32,987,391
6,904,965
(7,566,851)
-
(7,566,851)
(851,398)
-
(851,398)
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 19 and Note 29 for details of the parent company’s commitments and contingent liabilities.
Dividends
27.
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 2023 (2022:
Nil).
78
28.
Events Subsequent to Balance Date
Vesting of Class A performance Rights
On 14 July 2023, the Company announced that the performance milestone attaching to the Tranche 1
Performance Rights, namely that the Company achieves a market capitalisation of over $250,000,000
determined using the 30 calendar day Volume Weighted Average Price of its shares and the number of
shares on issue at the relevant time, had been achieved and that as such the 4,400,000 Tranche 1
Performance Rights on issue had now fully vested.
Pursuant to the terms of the Tranche One Performance Rights, the holders have the right to convert their
rights into fully paid ordinary shares in Lindian at any time up to the date of expiry of their rights.
The holders of the Tranche One Performance rights are as follows:
Holder
Position
Number
Asimwe Kabunga
Executive Chairman
2,000,000
Yves Occello
Jack Fazio
Non-executive Director
Non-executive Director
200,000
200,000
Alistair Stephens
Chief Executive Officer
2,000,000
TOTAL
4,400,000
Subsequent to year end, all of the above holders have converted their Tranche One Performance Rights
into fully paid ordinary shares, except for Yves Occello.
$35M Placement
On 20 July 2023, the Company announced the completion of a brokered managed placement of
106,060,606 fully paid ordinary shares at $0.33 per share to raise $35 million before costs.
Option Conversions and Other Movements
On 14 August 2023, the Company announced the issue of 63,523 fully paid ordinary shares arising from
the conversion of options having an exercise price of $0.30 and an expiry date of 9 December 2025.
On 28 September 2023, Lindian announced the issue of 12,269,939 fully paid ordinary shares arising from
the conversion of options having an exercise price of $0.032 and an expiry date of 28 September 2023;
and on 29 September 2023that 1,533,742 options having an exercise price of $0.032 and an expiry date of
28 September 2023 had lapsed.
Placement to Director as Approved by Shareholders at General Meeting
On 16 August 2023, the Company announced the issue of 1,934,076 fully paid ordinary shares and 961,568
free attaching options pursuant to a placement of $575,000 by Director Asimwe Kabunga approved by
shareholders on 17 July 2023.
Kangankunde Rare Earths Project Acquisition
On 27 July 2023, the Company announced the completion of the third tranche US$10.0m payment in
accordance with the terms of its acquisition of 100% of Rift Valley Resources Developments Limited (‘Rift
Valley’) which owns 100% of the globally significant Kangankunde Rare Earths Project.
A total of US$20m has now been paid to Rift Valley, with a fourth and final tranche payment of US$10m
payable upon the commencement of commercial production at Kangankunde, or by end July 2026,
whichever is the earlier. Lindian has the right, but not the obligation, to make the remaining Tranche 4
payment sooner, if Lindian so chooses.
Following the payment of the third tranche, Lindian is now the legally registered owner of 67% of the issued
share capital of Rift Valley, with the final 33% to be transferred and registered in Lindian’s name following
payment of Tranche 4, the final tranche.
79
Kangankunde Rare Earths Project Maiden Mineral Resource Estimate
On 3 August 2023, the Company announced its maiden Mineral Resource Estimate for Kangankunde Rare
Earths Project of 261 million tonnes averaging 2.19% TREO above a 0.5% TREO cutoff grade (refer ASX
announcement of 3 August 2023).
Kangankunde Monazite Concentrate Sale and Purchase Contract with Gerald Metals SARL
On 26 September 2023, Lindian announced that it had entered into a monazite concentrate sale and
purchase contract with Gerald Metals SARL, part of the Gerald Group, under which Lindian is to supply
45,000 tonnes of monazite concentrate from its Kangankunde Stage 1 development over a 60-month
period.
Gerald Group, founded in the United States in 1962 and now headquartered in London, United Kingdom, is
the largest independent, employee-owned metals trading house, and one of the largest leading global
commodity trading companies.
In addition, Gerald Metals may elect to provide Lindian with a US$10 million Run-of-Mine finance facility
on terms to be agreed.
The key terms of the Sale and Purchase Contract are detailed in the Company’s ASX announcement of 26
September 2023.
Director Appointments
On 22 August 2023, Lindian announced the appointment of Mr Trevor Matthews as an executive director
and Mr Alwyn Vorster as a non-executive director; refer ASX announcement of same date.
And on 4 September 2023, Lindian announced the appointment of Mr Park Wei as a non-executive
director; refer ASX announcement of same date.
Other than the matters disclosed above, there have been no other matters or circumstances have arisen
in the interval between the end of the financial year and the date of this report of a material or unusual
nature likely, in the opinion of the Directors of the Company, to affect significantly the operations of the
Group, the results of those operations, or the state of affairs of the Group, in future financial years.
Commitments and Contingencies
29.
The Company has no commitments or contingencies other than those reported at Notes 11 and 19.
Foreign Exchange Losses
30.
The Group incurred foreign exchange losses for the year ended 30 June 2023 of $1,420,151 as follows:
30 June 2023
30 June 2022
Note
$
$
Foreign exchange gains/(losses) on invoices
settled in foreign currencies
Foreign exchange losses relating to acquisition of
Kangankunde Project
11
(74,523)
(1,345,628)
-
-
Total
(1,420,151)
240,743
80
Directors’ Declaration
In accordance with a resolution of the Directors of Lindian Resources Limited, the Directors declare
that:
In the opinion of the Directors:
1.
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
2023 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.
2.
3.
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).
This declaration has been made after receiving the declarations required to be made in accordance
with section 295A of the Corporations Act 2001 for the year ended 30 June 2023.
On behalf of the board
Asimwe Kabunga | Chairman
29 September 2023
81
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 2023, 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 2023
N G Neill
Partner
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
2023, the consolidated statement of profit or loss and other comprehensive income, the consolidated
statement of changes in equity and the consolidated statement of cash flows for the year then ended,
and notes to the financial 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 2023 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 (including Independence Standards) (“the Code”) that are relevant to our audit of the
financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance with
the Code.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our opinion.
Key Audit Matters
Key audit matters are those matters that, in our professional judgement, were of most significance in
our audit of the financial report of the current period. These matters were addressed in the context of
our audit of the financial report as a whole, and in forming our opinion thereon, and we do not provide
a separate opinion on these matters.
Key Audit Matter
How our audit addressed the key audit
matter
Deferred exploration and evaluation expenditure
Refer to Note 8
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 procedures included but were not limited to
the following:
• We obtained an understanding of the key
processes associated with management’s
review of the exploration and evaluation
asset carrying values;
the carrying value of
Our audit focussed on the Group’s assessment
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
and due to a large acquisition during the year.
. There is a risk that the capitalised expenditure
no longer meets the recognition criteria of the
is
standard.
facts and
necessary
circumstances existed
the
carrying amount of an exploration and evaluation
asset may exceed its recoverable amount.
In addition, we considered
to assess whether
to suggest
that
• We reviewed key transactions during the
they were correctly
to ensure
year
accounted for;
• We substantiated a sample of exploration
expenditures;
• We considered the Director’ assessment of
potential indicators of impairment;
• We obtained evidence that the Group has
current rights to tenures of its area of
interest;
• 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 2023, but does not include the
financial report and our auditor’s report thereon.
Our opinion on the financial report does not cover the other information and accordingly we do not
express any form of assurance conclusion thereon.
In connection with our audit of the financial report, our responsibility is to read the other information
and, in doing so, consider whether the other information is materially inconsistent with the financial
report, or our knowledge obtained in the audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this
other information, we are required to report that fact. We have nothing to report in this regard.
Responsibilities of the Directors for the Financial Report
The directors of the Company are responsible for the preparation of the financial report that gives a
true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001
and for such internal control as the directors determine is necessary to enable the preparation of the
financial report that gives a true and fair view and is free from material misstatement, whether due to
fraud or error.
In preparing the financial report, the directors are responsible for assessing the ability of the Group to
continue as a going concern, disclosing, as applicable, matters related to going concern and using the
going concern basis of accounting unless the directors either intend to liquidate the Group or to cease
operations, or 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, actions taken to eliminate
threats or safeguards applied.
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 2023.
In our opinion, the Remuneration Report of Lindian Resources Limited for the year ended 30 June
2023 complies with Section 300A of the Corporations Act 2001.
Responsibilities
The directors of the Company are responsible for the preparation and presentation of the Remuneration
Report in accordance with section 300A of the Corporations Act 2001. Our responsibility is to express
an opinion on the Remuneration Report, based on our audit conducted in accordance with Australian
Auditing Standards.
HLB Mann Judd
Chartered Accountants
Perth, Western Australia
29 September 2023
N G Neill
Partner
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 29 September 2023.
Number of Shareholders and Unquoted Security Holders
Shares
As at 29 September 2023, there were 2,452 shareholders holding a total of 1,151,922,236 fully paid ordinary
shares.
Unquoted Securities
The total number of unquoted securities on issue as at 29 September 2023 was 112,926,549 as follows:
Unquoted Security
Number on Issue
Options exercisable at $0.12 on or before 6 June 2025
Options exercisable at $0.25 on or before 8 March 2025
Options exercisable at $0.10 on or before 29 August 2025
Options exercisable at $0.30 on or before 9 December 2025
Options exercisable at $0.35 on or before 3 April 2026
Performance Rights – tranche 1
Performance Rights – tranche 2
Performance Rights – tranche 3
Performance Rights – tranche 4
Total
10,000,000
7,500,000
17,000,000
32,318,859
17,307,690
200,000
6,600,000
11,000,000
11,000,000
112,926,549
Distribution schedule and number of holders of equity securities as at 28
September 2023
Fully Paid Ordinary Shares
Options exercisable at $0.12 on or
before 6 June 2025
Options exercisable at $0.25 on or
before 8 March 2025
Options exercisable at $0.10 on or
before 29 August 2025
Options exercisable at $0.30 on or
before 9 December 2025
Options exercisable at $0.35 on or
before 3 April 2026
Performance Rights – tranche 1
Performance Rights – tranche 2
Performance Rights – tranche 3
Performance Rights – tranche 4
1 –
1,000
121
1,001 –
5,000
133
5,001 –
10,000
105
10,001 –
100,000
492
100,001 –
and over
291
Total
1,142
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
1
1
3
1
1
3
90
90
3
1
4
4
4
3
1
4
4
4
The number of holders holding less than a marketable parcel of fully paid ordinary shares as at 29
September 2023 was 310.
87
Top Twenty Shareholders
Shareholder name
No. of ordinary
shares held
%
1. Kabunga Holdings Pty Ltd
2. Ven Capital Pty Ltd
3. Mr Rohan Patnaik
4. Bonacare Pty Ltd
5. BNP Paribas Nominees Pty Ltd
6. Topwei Two Pty Ltd
7. Mr Victor Lorusso
8. Ms Leticia Kabunga
9. Citicorp Nominees Pty Limited
10. HSBC Custody Nominees (Australia) Limited-GSCO ECA
11. HSBC Custody Nominees (Australia) Limited
12. Mr Yulong Gu
13. BNP Paribas Nominees Pty Ltd
14. Cove Street Pty Ltd
15. Claymore Ventures Limited
16. BNP Paribas Nominees Pty Ltd
17. Ms Katie-Lee Lorusso
18. JP Morgan Nominees Australia Pty Ltd
19. Dr Darko Pozder
20. Worldpower
125,526,578
101,639,845
78,250,000
68,552,181
55,358,328
45,734,898
41,000,000
35,856,099
35,691,721
35,414,064
27,584,971
18,650,966
14,753,583
14,600,000
12,997,304
11,707,488
10,000,000
9,564,026
8,806,368
8,500,000
10.90%
8.82%
6.79%
5.95%
4.81%
3.97%
3.56%
3.10%
3.10%
3.07%
2.39%
1.62%
1.28%
1.27%
1.13%
1.02%
0.87%
0.83%
0.76%
0.76%
Holder Details of Unquoted Securities
Unquoted security holders that hold more than 20% of a given class of unquoted securities as at 29
September 2022 other than the performance rights which were issued under an employee incentive
scheme are as follows:
Total
760,188,420
66.00%
Security
Name
Options exercisable at $0.10 on or before 29-Aug-2025
Lewin Capital Pty Ltd
Options exercisable at $0.10 on or before 29-Aug-2025
Mr Yueqi Ma
Options exercisable at $0.10 on or before 29-Aug-2025
Mr Xiaodong Ma
Options exercisable at $0.12 on or before 6-Jun-2025
Mr Zuliang Park Wei & Ms Bao
Hong Zhang
Options exercisable at $0.25 on or before 8-Mar-2025
Bonacare Pty Ltd
Options exercisable at $0.35 on or before 3-Apr-2026
Mr Tam Jin Rong
Performance Rights – class A
Performance Rights – class B
Performance Rights – class B
Performance Rights – class C
Performance Rights – class C
Performance Rights – class D
Performance Rights – class D
Yves Occello
Alistair Stephens
Kabunga Holdings Pty Ltd
Alistair Stephens
Kabunga Holdings Pty Ltd
Alistair Stephens
Kabunga Holdings Pty Ltd
Number of
Securities
7,000,000
6,500,000
3,500,000
10,000,000
7,500,000
14,423,076
2,000,000
3,000,000
3,000,000
5,000,000
5,000,000
5,000,000
5,000,000
88
Restricted Securities as at 29 September 2023
The Company had no restricted securities as at 29 September 2023.
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
Ordinary
shares held
% Ordinary
shares held
Date of Notice
1
Kabunga Holdings Pty Ltd
125,526,578
10.90%
17 August 2023
2 Topwei Pty Ltd, Bonacare Pty Ltd, Wei
114,797,079
3 Ven Capital Pty Ltd
4 Mr Rohan Patnaik
101,639,845
78,250,000
9.97%
8.82%
6.79%
5 September 2023
21 July 2023
20 July 2023
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.
89
Tenement Listing
Project
Country
Licence
Number
Status
Licence Type
Lindian
Beneficial
Interest
Kangankunde
Project 1
Kangankunde
Project 1
Malawi
ML0290
Granted
Mining
100%
Malawi
EL0514
Granted
Prospecting
100%
Gaoual Project 2
Guinea
22584
Granted
Prospecting
Lelouma Project
Guinea
2017/4994
Granted
Prospecting
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
Pare Project
Tanzania
11263/2019
Granted
Prospecting
Pare Project
Tanzania
14098/2019
Application
Prospecting
Uyowa Project 3
Tanzania
10918/2016
Granted
Prospecting
Uyowa Project 3
Tanzania
11888/2022
Granted
Prospecting
Uyowa Project 3
Tanzania
002240
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%
100%
100%
100%
100%
100%
100%
1.
2.
3.
Lindian’s beneficial interest in this license is pursuant to an agreement between Lindian, Rift Valley Resource
Developments Limited and its shareholders whereunder Lindian must pay US$30 million; comprising four tranches
over a specified timeframe – refer ASX announcement dated 1 August 2022.
Lindian’s beneficial interest in this license is subject to completion occurring under an option agreement between
Lindian and KB Bauxite Pty Ltd SARLU and its sole shareholder Guinea Bauxite Pty Ltd. Refer to the ASX
announcement dated 10 April 2019 for full details of the consideration payable under the option agreement.
License held on trust for Lindian Resources pursuant to a Declaration of Trust with Leticia Kabunga.
90
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.
KANGANKUNDE RARE EARTS PROJECT
Kangankunde is located 90 kilometres north of the city of Blantyre, the main economic and commercial
centre in Malawi. The town of Balaka, 15 kilometres to the north of Kangankunde, a regional trade centre,
has a population of about 36,000 people. The project is located close to the main M1 highway, rail lines to
ports and high voltage transmission lines.
On 1 August 2022 Lindian announced the acquisition of 100% of Malawian registered Rift Valley Resource
Developments Limited (Rift Valley) and its 100% owned title to Exploration Licence EPL0514/18R and
Mining Licence MML0290/22.
Under the terms of the Transaction, Lindian has an agreement to acquire 100% of issued capital of Rift
Valley from its existing shareholders for US$30 million, payable in tranches.
As at the date of this report, Lindian has paid US$20.0 million in cash and is the registered owner of 67% of the shares
in Rift Valley. The remaining amount of US$10.0 million is due 48 months from the signature date of the Share
Purchase Agreement, or on the commencement of production (refer ASX release 1 August 2022) at which time the
remaining 33% of the shares in Rift Valley will be transferred to Lindian.
The Exploration and Mining Licences have an Environmental and Social Impact Assessment Licence
No.2:10:16 issued under the Malawi Environmental Management Act No. 19 of 2017.
Kangankunde Mineral Resource Estimate
In August 2023, a Mineral Resource Estimate for the Kangankunde Rare Earths Project was reported by
Cube Consulting Pty Ltd of 261 million tonnes averaging 2.19% TREO above a 0.5% TREO cutoff grade (refer ASX
announcement of 3 August 2023).
The resource is entirely Inferred status, has been estimated in accordance with JORC 2012 guidelines and
is summarised in Table 1.
Table 1: Kangankunde Rare Earths Project Mineral Resource Above 0.5% TREO Cut-off Grade
Resource
Classification
Tonnes
(millions)
Inferred Resource
261
TREO
(%)
2.19
NdPr% of TREO**
(%)
20.2
Tonnes Contained
NdPr*
(millions)
1.2
Rounding has been applied to 1.0Mt for tonnes and 0.1% NdPr% of TREO which may influence total calculation.
* NdPr = Nd2O3 + Pr6O11, ** NdPrO% / TREO% x 100
Table 2 Kangankunde Rare Earths Mineral Resource by Estimation Domain (at 0.5% TREO cut-off)
Inferred Classification
by Domain
Tonnes
(millions)
Domain 1
Domain 2
Domain 3
Domain 4
Domain 5
58
72
23
60
46
TREO
(%)
1.76
1.91
3.23
2.40
2.34
NdPr% of TREO
(%)
22.0
20.7
18.5
19.5
20.4
Tonnes Contained
NdPr*
(000’s)
225
285
137
281
220
* NdPr = Nd2O3 + Pr6O11. Rounding has been applied to 1.0Mt for tonnes and 0.1% NdPr% of TREO which may
influence total calculation.
91
COMPETENT PERSONS’ STATEMENT - KANGANKUNDE
The information in this Report that relates to the Mineral Resource Estimate for the Kangankunde Rare
Earths Project is extracted from an ASX announcement dated 3 August 2023 titled “Lindian Reports
Maiden Mineral Resource Estimate of 261 Million Tonnes at High Grade of 2.19% TREO” available to view at
www.lindianresources.com.au and for which Competent Persons’ consents were obtained.
The Competent Persons’ consents remain in place for subsequent releases by the Company of the same
information in the same form and context, until the consent is withdrawn or replaced by a subsequent
report and accompanying consent.
The Mineral Resource Estimate for the Kangankunde Project was prepared by Mr Daniel Saunders, a
Competent Person who is a full-time employee of Cube Consulting Pty Ltd and a Fellow of The Australasian
Institute of Mining and Metallurgy, utilising drilling, sampling, assay and bulk density data compiled by
Mr. Geoff Chapman, who is the principal of geological consultancy GJ Exploration Pty Ltd that is engaged
by to Lindian Resources Limited and a Fellow of the Australian Institute of Mining and Metallurgy
(AusIMM). Both Mr Saunders and Mr. Chapman have sufficient experience relevant to the style of
mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as
a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration
Results, Mineral Resources and Ore Reserves’ (JORC Code).
The Company confirms that it is not aware of any new information or data that materially affects the
Mineral Resource Estimate included in the original ASX announcement released on 3 August 2023 and
all material assumptions and technical parameters underpinning the Mineral Resource Estimate
continue to apply and have not materially changed.
The information in this report that relates to Exploration Results of the Kangankunde Rare Earths
Project is extracted from reports released to the Australian Securities Exchange (ASX) listed in the table
below and which are available to view at www.lindianresources.com.au and for which Competent Persons’
consents were obtained. The Competent Persons’ consents remain in place for subsequent releases by
the Company of the same information in the same form and context, until the consent is withdrawn or
replaced by a subsequent report and accompanying consent. The Company confirms that is not aware of
any new information or data that materially affects the information included in the original ASX
announcements released.
Unless otherwise stated, where reference is made to previous releases of exploration results in this report,
the Company confirms that it is not aware of any new information or data that materially affects the
information included and all material assumptions and technical parameters underpinning the
exploration results included continue to apply and have not materially changed.
The information in this report that relates to previous Exploration Results was prepared and first
disclosed under the JORC Code 2012 and has been properly and extensively cross-referenced in the text
to the date of the original announcement to the ASX.
Date of Release
Title
1-Aug-2022
5-Jan-2023
16-Jan-2023
Lindian to Acquire 100% of Globally Significant Kangankunde Rare Earths Project
Kangankunde Delivers Outstanding High Grade Rare Earth Assays
Kangankunde Delivers More Outstanding High-Grade Rare Earth Assays
24-Jan-2023
Kangankunde Continues to Deliver Outstanding High-Grade Rare Earth Assays
6-Feb-2023
9-Mar-2023
11-Apr-2023
17-Apr-2023
Kangankunde Continues to Deliver High-Grade Rare Earth Assays
Kangankunde Continues to Deliver High-Grade Rare Earths and Extensive Intersections
Phase One Metallurgical Test Work Achieves Rare Earths Concentrates of ~60% REO
More High-Grade Rare Earth Assays with Best Continuous Intersections Yet
29-May-2023
Kangankunde Delivers Highest Grade Rare Earth Assays to Date
17-Jul-2023
More Outstanding High-Grade Rare Earth Assays
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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 mineral resource estimate
The resource contained within the Bouba Plateau was estimated in July 2020 by Cube Consulting Pty
Ltd, Perth, Western 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
2).
Resources
(Mt)
Cut-off
(Al2O3%)
Grade
(Al2O3%)
Grade
(SiO2%)
Category
High Grade Resources
Total Resources
83.8
101.5
45
40
51.2
49.8
11.0%
Indicated
11.5%
Indicated
Table 2: Bouba Plateaux Resource Summary
COMPETENT PERSON STATEMENT – GAOUAL
The information in this announcement that relates to Mineral Resources for the Gaoual Bauxite Project is
extracted is from an ASX announcement dated 15 July 2020 “Lindian Defines Maiden Resource for its
High-Grade Conglomerate Bauxite” available to view at www.lindianresources.com.au and for which a
Competent Person consent was obtained.
The Competent Person’s consent remains in place for subsequent releases by the Company of the same
information in the same form and context, until the consent is withdrawn or replaced by a subsequent
report and accompanying consent.
The Mineral Resource statement for the Gaoual Bauxite Project was prepared 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 of
Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code).
The Company confirms that is not aware of any new information or data that materially affects the Mineral
Resource Estimate included in the original ASX announcement released on 15th July 2020 and all material
assumptions and technical parameters underpinning the Mineral Resource Estimate continue to apply
and have not materially changed.
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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 Mineral Resource Estimate
In October 2020, an updated Mineral Resource Estimate 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 3: Lelouma Mineral Resource Statement (Inclusive of the Mineral Resources in Table 4)
Cut-off Criteria
Mineral Resource
Category
Tonnes (Mt)
Al2O3 (%)
SiO2 (%)
>45% Al2O3
<10% SiO2
>1m Thick
<1 Strip Ratio (waste:ore
thickness)
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
1.8
2.1
2.0
2.8
2.0
Table 4: Lelouma High Grade Portion (Included within the Mineral Resources in Table 3)
COMPETENT PERSONS’ STATEMENT – LELOUMA
The information in this announcement that relates to Mineral Resources for the Lelouma Bauxite Project
is extracted from an announcement released to the ASX on 6 October 2020 titled “World Class Lelouma
Project Increases Resources to 900Mt” and is available to view at www.lindianresources.com.au and for
which a Competent Person consent was obtained.
The Competent Person(s) consent remains in place for subsequent releases by the Company of the same
information in the same form and context, until the consent is withdrawn or replaced by a subsequent
report and accompanying consent.
94
The Mineral Resource statement for the Lelouma Project was prepared and reported by SRK Consulting
(UK) Ltd, in compliance with the Australasian Code for the Reporting of Exploration Results, Mineral
Resources, and Ore Reserves, the JORC Code, 2012 Edition (“JORC”, or the “JORC Code”), by constraining
the in situ model using cut-off grades of >40% 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.
The Company confirms that is not aware of any new information or data that materially affects the Mineral
Resource Estimate included in the original ASX announcement released on 6 October 2020 and all
material assumptions and technical parameters underpinning the Mineral Resource Estimate continue
to apply and have not materially changed.
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 Estimate
The Mineral Resource Estimate 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
Mineral Resource
Category
Tonnes
(Mt)
>34% Al2O3
10% SiO2 / >1m Thick / <1 Strip
Ratio (waste:ore thickness)
Inferred
Total
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 6)
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
Mineral Resource
Category
>40% Al2O3
10% SiO2 / >1m Thick / <1 Strip
Ratio (waste:ore thickness)
Inferred
Total
Tonnes
(Mt)
(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 Table 5)
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COMPETENT PERSONS’ STATEMENTS – WOULA
The information in this announcement that relates to Mineral Resources for the Woula Bauxite Project is
extracted from an announcement released to the Australian Securities Exchange (ASX) on 23 September
2020 titled “Lindian Acquires Tier-1 Bauxite Project with 847Mt of High Grade Resource” and is available
to view at www.lindianresources.com.au and for which a Competent Person(s) consent was obtained
which such consent remains in place for subsequent releases by the Company of the same information
in the same form and context, until the consent is withdrawn or replaced by a subsequent report and
accompanying consent.
The Mineral Resource statement for the Woula Project was prepared and reported by SRK Consulting (UK)
Ltd, in compliance with the Australasian Code for the Reporting of Exploration Results, Mineral Resources,
and Ore Reserves, the JORC Code, 2012 Edition (“JORC”, or the “JORC Code”), by constraining the in situ
model using cut-off grades of >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.
The Company confirms that is not aware of any new information or data that materially affects the Mineral
Resource Estimate included in the ASX announcement released on 23 September 2020 and all material
assumptions and technical parameters underpinning the Mineral Resource Estimate continue to apply
and have not materially changed.
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 extracted from reports released to the Australian Securities Exchange (ASX) on 12 March 2019 titled
“Drilling Commences on Lushoto and Pare Bauxite Projects” and on 15 May 2019 titled “Drilling Update
Tanzania” are available to view at www.lindianresources.com.au and for which a Competent Person’s
consent was obtained. The Competent Person’s consent remains in place for subsequent releases by the
Company of the same information in the same form and context, until the consent is withdrawn or
replaced by a subsequent report and accompanying consent. The Company confirms that is not aware of
any new information or data that materially affects the information included in the original ASX
announcements released.
Unless otherwise stated, where reference is made to previous releases of exploration results in this report,
the Company confirms that it is not aware of any new information or data that materially affects the
information included and all material assumptions and technical parameters underpinning the
exploration results included continue to apply and have not materially changed.
The information in this report that relates to previous Exploration Results was prepared and first
disclosed under the JORC Code 2012 and has been properly and extensively cross-referenced in the text
to the date of the original announcement to the ASX.
96