Page | 1
Contents
Corporate Directory
2
Company Overview
3
Chairman's Letter
4
CEO Review of Operations
6
Tenement Schedule
10
Director's Report
17
Remuneration Report (Audited)
21
Consolidated Statement of Profit or Loss and Other Comprehensive Income
33
Consolidated Statement of Financial Position
34
Consolidated Statement of Cash Flows
35
Consolidated Statement of Changes in Equity
36
Notes to the Financial Statements
37
Consolidated Entity Disclosure Statement
61
Directors' Declaration
62
Auditor's Independence Declaration
63
Independent Auditor's Report
64
Additional ASX Information
68
Page | 2
Corporate Directory
DIRECTORS
Asimwe Kabunga (Executive Chairman)
Trevor Matthews (Executive Director)
Yves Occello (Non-Executive Director)
Park Wei (Non-Executive Director)
COMPANY SECRETARY
Kellie Davis (appointed 17 May 2024)
REGISTERED OFFICE
Level 15
240 St Georges Terrace
Perth WA 6000
Telephone: + 61 8 6401 4300
Website: www.lindianresources.com.au
ABN: 53 090 772 222
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
OTCQB Venture Market
OTCQB Code: LINIF
Page | 3
COMPANY OVERVIEW
Lindian Resources (ASX: LIN; OTCQB:LINIF) is an Australian based company with world class rare
earths and bauxite assets in Malawi and Guinea respectively. Through the development of these
assets, Lindian can become a globally significant critical minerals producer.
The Kangankunde Rare Earths Project in Malawi is the cornerstone of Lindian’s asset portfolio. It is
one of the world’s largest rare earths deposits and is top tier in terms of high rare earth oxide (REO)
grade and low levels of impurities and radioactive minerals. It has one of the lowest capital and
operating cost structures of global rare earths projects. Kangankunde has impressive development
potential and significant future expansion opportunities. A recent feasibility study on the Stage 1
development delivered outstanding technical and economic results for a Stage 1 development.
The Kangankunde Project has access to good supporting infrastructure, strong community and
government support, and all key licences and approvals are in place to commence construction.
Following the completion of the feasibility study, Lindian is now pursuing project financing with the
aim of commencing Stage 1 construction late in 2024.
Lindian also has several bauxite assets in Guinea and Tanzania. Guinea is known as the premier
bauxite producer in the world, having significant quantities of premium quality high grade and low
impurities bauxite.
Page | 4
CHAIRMAN’S LETTER
On behalf of the Lindian Board, I am pleased to present the
2024 Annual Report for Lindian Resources Limited
(Lindian or the Company). It has been another busy 12
months for the Company, which maintained a rapid pace
of development across its asset portfolio led by the
globally significant Kangankunde Rare Earths Project
(Kangankunde or the Project) in Malawi.
Operational highlights in the first half of the 2024
Financial Year included the delivery of a maiden Mineral
Resource estimate (MRE) at Kangankunde, which
established it as one of the premier rare earth deposits
globally.
The MRE was followed by additional drilling at depth, which resulted in the establishment of an
exploration target. With consistent operational execution throughout the year, Lindian completed
additional infill drilling alongside site development works at Kangankunde, culminating in a
maiden Ore Reserve and a Feasibility Study announcement post-balance date. The Kangankunde
Feasibility Study highlighted the compelling economics and strong technical attributes of the Stage
1 Project, demonstrating its world-class status.
All of this was achieved amid a macroeconomic environment that saw global rare earths prices come
under pressure in 2023 and stabilise at multi-year lows in the first half of the 2024 calendar year.
The net result is that against a challenging backdrop of lower neodymium-praseodymium
(NdPr) prices, Lindian had an extraordinarily productive year and unlocked significant value from
the Kangankunde Project. Importantly, the Feasibility Study demonstrating that the Project would
deliver a positive EBITDA even at NdPr prices as low as US$50/kg.
Pleasingly, these results were achieved with disciplined cost management following the successful
completion of a strategic $35M placement in July 2023. With funds raised from the Placement,
Lindian successfully completed the third tranche US$10M payment to Rift Valley Resources, which
resulted in its current majority 67% ownership stake in Kangankunde.
The diligent efforts carried out in the 2024 Financial Year (FY) means that Lindian heads into FY2025,
controlling a globally significant rare earths project at Kangankunde that has been largely de-risked.
With careful stewardship of the funds raised from Lindian’s strategic placement in FY2023 and a
disciplined focus on cost control, the Company is well-funded as it works to secure the development
financing required to bring Kangankunde into construction and operations.
Across its asset suite, the Lindian Board and management team continued to guide the Company’s
value-accretive strategy for its multi-asset bauxite portfolio in Guinea. Lindian’s three projects at
Woula, Gaoual, and Lelouma continue to hold significant development potential, particularly amid
the broader tailwinds that are forming behind Guinea’s resources sector. Most recently, the ongoing
development of what is expected to be the world’s largest new iron ore mine, with major associated
infrastructure, has the potential to unlock the value of the broader industry.
Amid that positive backdrop, Lindian has continued to field multiple expressions of interest from
credible counterparties to participate in developing its Guinea bauxite projects, and the Company
looks forward to providing more updates as negotiations advance.
With another year of hard work behind us, Lindian is now uniquely positioned to rapidly advance one
of the world’s premier rare earth assets at Kangankunde from exploration to development, edging
the Company closer to realising its ambition to become a globally significant critical minerals
supplier.
Page | 5
I would like to take this opportunity to thank our team of dedicated employees and experienced
consultants for their commitment during the year. It has been the collective effort of many that has
seen us add considerable value to our portfolio of assets. We are committed to building out our
talent pool as we advance to the construction and production phases.
Of particular note is the support we have received in Malawi from the local community where we
operate, and from Minister of Mining the Hon. Monica Chang'anamuno MP and her very dedicated
ministry. Malawi is making the mining industry a key growth pillar of their economy and we are
grateful for the strong commitment the government and the community have made to help us
advance Kangankunde into the country’s next major mining project.
My fellow Board members, thank you also for your ongoing contributions. Each has worked tirelessly
throughout the year across all aspects of project development and financing.
I’d also like to thank Lindian’s shareholders for their ongoing support. We are confident that we will
realise much greater value for shareholders once project financing has been locked in, linked with
an improved pricing environment and confirmation of construction works commencing at
Kangankunde. The Board and management team are committed to honouring the support of Lindian
shareholders by delivering on the stated strategy to advance Kangankunde into a globally
recognised rare earths operation.”
Asimwe Kabunga
Executive Chairman
Page | 6
CEO’S REVIEW OF OPERATIONS
KANGANKUNDE RARE EARTHS PROJECT – MALAWI
The 2024 Financial Year (FY2024) was a busy period for the
Lindian management team and our support consultants,
highlighted by disciplined pursuit of the Company’s stated
strategy to rapidly advance its flagship Kangankunde Rare
Earths Project (Kangankunde or the Project) from
exploration to development.
Exploration
Operational highlights at Kangankunde commenced with
the delivery of a maiden Mineral Resource Estimate (MRE)
in August 2023, totalling 261 Mt averaging 2.19% TREO
above a 0.5% TREO cutoff grade. The outstanding results
established Kangankunde as one of the largest and best rare earths deposits globally1.
Following Kangankunde’s maiden MRE, ongoing drill works resulted in the delivery of an Exploration
Target in October 20232. Incorporating the spectacular assay results that were achieved as part of
the Phase 2 deep-drill program, an Exploration Target for Kangankunde of between 400 Mt (lower
range) to 800 Mt (upper range) grading between 2.0% and 2.7% TREO was established. Along with the
size and grade of the MRE, the Exploration Target served to further underline the potential scale of
Kangankunde and its long-term development potential.
Cautionary Statement: The potential quantity and grade of the Exploration Target is conceptual in nature and therefore is an
approximation. There has been insufficient exploration to estimate a Mineral Resource in the area considered an exploration
target and it is uncertain if further exploration will result in the estimation of a Mineral Resource. The Exploration Target has
been prepared and reported in accordance with the 2012 edition of the JORC Code.
The busy exploration schedule at
Kangankunde continued at the start of
the
2024
calendar
year,
with
milestones
highlighted
by
the
completion of the Phase 3 infill drill
program which included forty-five (45)
drillholes for 4,886 m. All holes assayed
for the Phase 3 program continued to
demonstrate extensive intersections of
mineralisation to end of hole (EOH),
non-radioactivity
and
significant
percentages of critical rare earths
metal
elements
neodymium
and
praseodymium (NdPr). The Phase 3 drill
program
results
marked
the
completion
by
the
Kangankunde
operations team of more than 20,000
m of drilling in less than 15 months,
which has defined what is one of
world’s best rare earths deposits with
excellent
grade,
non-radioactive
material, a high NdPr ratio and enormous scale3.
1 ASX Announcement 3 August 2023
2 ASX Announcement 5 October 2023
3 ASX Announcement 1 February 2024
Page | 7
The infill drilling results were subsequently incorporated into an upgraded Mineral Resource
Estimate for Kangankunde which now includes 61 Mt in the Indicated Resource category at a 2.43%
TREO grade (0.5% TREO cut-off). The Indicated Resource also includes a higher-grade component of
25 Mt grading 3.26% TREO (2.5% TREO cut-off grade) and 300,000 t of neodymium/praseodymium
(NdPr) with NdPr averaging 20.2% of TREO4.
Process flowsheet development
Metallurgical test work demonstrated that processing of Kangankunde’s mineralisation will be
amenable to relatively simple low-cost gravity and magnetic beneficiation techniques. Importantly,
the Minerals Division of the Australian Nuclear Science and Technology Organisation (ANSTO), an
independent government agency, also confirmed that the Kangankunde rare earth mineral
concentrates, grading up to 66% TREO achieved by beneficiation using gravity and magnetic
separation techniques, would not be classified as radioactive for transport. This attribute is
expected to facilitate simplified and lower cost handling and shipping of rare earth concentrates to
end-users in international markets, further strengthening the Project’s commercial potential5.
Licencing
Throughout FY2024 and alongside the extensive drill program, the Lindian management team
continued to collaborate extensively with the regulatory authorities and local communities in
Malawi. By year-end, the Company had successfully obtained full permitting with a Mining Licence,
Exploration Licence, Environmental and Social Impact Assessment Licence, Explosives Permit, and
Water Permit approving the extraction of groundwater at Kangankunde for the construction and
operation phases. These were accompanied by detailed design works for the proposed Stage 1
processing plant, which were subsequently incorporated into the Feasibility Study.
Community engagement
Furthermore, a Community Engagement Plan (CEP) was developed in collaboration with the local
community and government. The CEP establishes a committee comprised of community leaders,
local community representatives, Government District Council officials, and senior leadership of
Lindian. The committee's purpose is to act as a forum for continued communication and
engagement, discussions of matters that might affect either of the parties and defines the process
for addressing issues.
During the year, the Company was approached by Community Leaders and the Area Development
Committee (ADC) to assist in completing the construction of a community police unit which had
stalled for several years due to lack of funds. This was prompted by the community's need for
improved security in the area. The Company responded to this request by providing funding for the
construction of the police unit.
In consultation with the Malawi Government’s Ministry of Lands and Balaka Community leaders, a
resettlement plan has been agreed and implemented for community members who are relocating
from the Mining Lease area due to the Kangankunde Project’s development, across an initial ~240
hectares. Lindian has now disbursed the agreed compensation to those affected and the relocation
process is almost complete.
Offtake
Rounding out a productive first half of FY2024, Lindian announced that it had signed a Sale and
Purchase Contract with USA based global metals trading company, Gerald Metals SARL. The contract
provides for the supply and sale of 45,000 tonnes of monazite concentrate from the Stage 1
development of Kangankunde, while retaining the right for Lindian to enter into additional sales
contracts with other counterparties6.
4 ASX Announcement 2 May 2024
5 ASX Announcement 7 September 2023
6 ASX Announcement 26 September 2023
Page | 8
Feasibility Study Results7
Post balance-date on 1 July 2024, Lindian published its Feasibility Study for the Stage 1 Kangankunde
development, which confirmed strong project economics highlighted by a pre-tax Net Present Value
of US$794M8 (A$1,189M9), an IRR of 99%8,9 and an average annual EBITDA of US$83M8.
With a pre-production capital cost of US$40M10 (~A$60M9) which includes 12.5% contingency, the
numbers confirmed in the Feasibility Study make Kangankunde one of the lowest capital cost rare
earths projects under development. The outstanding results also mean that the Stage 1 Project will
be one of very few global rare earths projects which can deliver a positive annual EBITDA, even if rare
earths prices are subdued at the lower end of their long-term trading range near US$50/kg8.
This low-cost structure is supported by a technically low-risk and robust Stage 1 project based on a
45-year operation. Stage 1 comprises a conventional mining operation, a processing plant, and
supporting infrastructure. Importantly, Kangankunde has the necessary approvals and licencing to
commence construction and operations.
The mineral processing operation will consist mainly of a physical process of gravity and magnetic
separation to produce a premium, high-grade concentrate. The Kangankunde Project’s concentrate
product and tailings will contain very low levels of radioactive materials and other impurities. This
provides benefits in respect of waste management, water recycling, product handling and shipping.
Heading into FY25, the hard work carried out in FY2024 leaves Kangankunde well positioned as a
globally significant rare earths project, with a defined pathway to development. In addition,
discussions are well advanced with various commercial offtake partners and investment groups for
development funding. The Project remains well supported by the Malawian Government and the local
communities, with all stakeholders working to ensure Kangankunde becomes a major source of
income for the Malawian economy.
BAUXITE ASSETS – GUINEA
Throughout FY2024, Lindian also took steps to unlock value from its suite of bauxite assets in
Guinea amid what is now an increasingly strong outlook for the resources industry in Guinea with
several major projects now advancing through joint developments with some of the world’s largest
mining companies. In that environment, Lindian’s three bauxite projects – Gaoual, Lelouma and
Woula – leave the Company well positioned to capitalise on improvements to infrastructure and
support from key policymakers in the region.
7 ASX Announcement 1 July 2024
8 Based on Project Blue rare earth pricing forecasts.
9 Bloomberg 26 June 2024 AUD:USD exchange rate 0.6676.
10Capex and Opex based primarily on actual tender pricing, also supported by requests for proposals and industry
benchmarks
Page | 9
During the fiscal year, Lindian continued to have dialogue with representatives of Compagnie des
Bauxites de Guinée (CBG) in relation to the Memorandum of Understanding (MOU) entered into for
Gaoual Bauxite Project in early September 2023. With a 49% ownership stake held by the Guinean
State and 51% held by US-registered Halco Mining Inc - a consortium comprising Rio Tinto-Alcan,
Alcoa and Dadco Investments - CBG is one of the largest single producers of bauxite in the world
with operations in Guinea. The MOU provides the framework for Lindian to supply bauxite from its
Gaoual Bauxite Project to CBG’s annual bauxite production and develop a sales contract between
the parties11.
Along with its Gaoual Project, Lindian has also continued to make progress in relation to the
derisking and development of its other Guinea bauxite projects in Lelouma and Woula, with multiple
expressions of interest from credible parties to become involved. The Company looks forward to
providing more updates in FY2025, as Guinea’s status as a major global bauxite supply hub is
further reinforced.
Near term focus
Since the release of the Kangankunde Feasibility Study on 1 July 2024, which confirmed the Project’s
very robust economics and technical attributes, interest in the Project from financiers and industry
participants has increased significantly. The focus now is to carefully assess these funding options
and pursue the best option for the Company and its shareholders. As outlined in the Feasibility Study
announcement, Lindian’s financing strategy is to secure a solution that results in the least dilution
for shareholders, while bringing maximum value to project partners that are committed to
developing the Project. There is no doubt that Kangankunde is indeed a very unique and globally
significant rare earths asset that could become a multi decade strategic supplier of NdPr to global
markets.
On a more personal note, I was extremely pleased to be entrusted by the Lindian Board to take on the
role of CEO late in FY2024. There are not many times in your career where you get to lead the
development of such a world-class asset.
I am looking forward to what is to come in the next year, and will continue to build out Lindian’s
team and undertake preliminary works to ensure we are well placed to hit the ground running once
financing is secured. I would like to thank the Lindian team for their dedication and commitment to
the Company. With them, I am confident we can deliver on our strategy and realise the full potential
of Lindian’s assets.
Alwyn Vorster
Chief Executive Officer
11 ASX Announcement 4 September 2023
Page | 10
TENEMENT SCHEDULE
Project
Country
Licence
Number
Status
Licence Type
Lindian
Beneficial
Interest
Kangankunde Project12
Malawi
MML0290/22
Granted
Mining
100%
Kangankunde Project12
Malawi
EL0514/18R
Granted
Prospecting
100%
Gaoual Project13
Guinea
2019/3942
Renewal14
Prospecting
75%
Lelouma Project
Guinea
2020/2562
Renewal14
Prospecting
75%
Woula Project
Guinea
2020/2351
Renewal14
Prospecting
61% (Up to
75%)
Lushoto Project
Tanzania
11176/2018
Granted
Prospecting
51%
Lushoto Project
Tanzania
11177/2018
Granted
Prospecting
51%
Lushoto Project
Tanzania
11178/2018
Granted
Prospecting
51%
Lushoto Project
Tanzania
11262/2019
Granted
Prospecting
51%
Lushoto Project
Tanzania
12194/2017
Application
Prospecting
51%
Lushoto Project
Tanzania
12195/2017
Application
Prospecting
51%
Pare Project15
Tanzania
11263/2019
Granted
Prospecting
51%
Pare Project15
Tanzania
14098/2019
Application
Prospecting
51%
Pare Project15
Tanzania
14100/2019
Application
Prospecting
51%
Uyowa Project16
Tanzania
10918/2016
Granted
Prospecting
100%
Uyowa Project16
Tanzania
2241CWZ
Granted
Primary Mining
100%
Uyowa Project16
Tanzania
2237GWZ
Granted
Primary Mining
100%
Uyowa Project16
Tanzania
002240
Granted
Primary Mining
100%
Uyowa Project16
Tanzania
2238CWZ
Granted
Primary Mining
100%
Uyowa Project16
Tanzania
2242CWZ
Granted
Primary Mining
100%
Uyowa Project16
Tanzania
2243CWZ
Granted
Primary Mining
100%
Uyowa Project16
Tanzania
2239CWZ
Granted
Primary Mining
100%
12 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.
13 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.
14 The tenements in Guinea are currently being renewed.
15 Hapa Gold Limited is a 100% owned subsidiary of Lindian Resources Limited.
16 License held on trust for Lindian Resources pursuant to a Declaration of Trust with Leticia Kabunga.
Page | 11
Summary of the entity’s annual review of its Mineral Resources and Ore Reserves results.
The Company annually reviews its Mineral Resources and Ore Reserves as required by the ASX Listing
Rules.
KANGANKUNDE RARE EARTHS PROJECT
Kangankunde is located 90 kilometres north of Blantyre, the main economic and commercial centre
in Malawi. The town of Balaka is 15 kilometres to the north of Kangankunde. The Project is located
near the main M1 highway, rail lines to ports, and high-voltage power 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 the issued share capital of Rift Valley from its existing shareholders
for US$30 million, payable in four tranches.
As at the date of this report, Lindian has paid three tranches totalling 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 May 2024, Lindian upgraded the Kangankunde Project’s Mineral Resource Estimate17 This
upgraded Mineral Resource Estimate supported the maiden Ore Reserve announced on 1 July 2024.
The upgraded Mineral Resource Estimate now includes 61 Mt in the indicated category at a 2.43%
TREO grade (0.5% TREO cut-off). The Indicated resource includes a higher-grade component of 25 Mt
grading 3.26% TREO (2.5% TREO cut-off grade) and 300,000 tonnes of neodymium-praseodymium
(NdPr) with NdPr averaging 20.2% of TREO.
Table 1: Kangankunde Project Mineral Resource Estimate above 0.5% TREO cut-off grade18
Category
Tonnage
(millions)
TREO grade
(%)
NdPR % of
TREO**
Tonnes contained
NdPr* (kt)
Indicated
61
2.43
20.1
298
Inferred
200
2.05
20.4
834
Total
261
2.14
20.3
1,132
•
Rounding has been applied to 1.0Mt for tonnes and 0.1% NdPr% of TREO which may influence total calculation.
*NdPr = Nd2O3 + Pr6O11, ** NdPr% / TREO% x 100.
•
Updated Mineral Resource Estimate for Kangankunde refer ASX Announcement 2 May 2024.
17 ASX announcement 2 May 2024 “Kangankunde Mineral Resource Estimate updated to include 61 million tonnes Indicated
category grading 2.43% TREO”.
18 ASX Announcement 2 May 2024 “Updated Mineral Resource Estimate for Kangankunde”.
Page | 12
KANGANKUNDE ORE RESERVE
In July 2024, Lindian released the Kangankunde Project’s maiden Ore Reserve. The Ore Reserves are
in accordance with JORC 2012 and estimated at 23.7 Mt of Ore Reserves at a grade of 2.9% TREO,
based on a cut-off grade of 1.00% TREO. All of the Ore Reserve is within the Probable category.
Table 2: Kangankunde Project Ore Reserves (June 2024)19
Category
Ore tonnes
(Mt)
TREO grade
(%)
NdPr % of
TREO
Tonnes contained
NdPr (kt)
Proved
-
-
-
-
Probable
23.7
2.9
19.7
676
Total
23.7
2.9
19.7
676
The figures have been rounded to the appropriate level of precision for the reporting of Ore Reserves.
•
Due to rounding, some columns or rows might not compute exactly as shown.
•
Ore Reserves are stated as in-situ dry tonnes, figures are reported in metric tonnes.
•
The Ore Reserve is derived from Indicated Mineral Resources.
•
The Ore Reserves are defined on the basis that inventory above a defined cut-off.
•
Modifying factors applied are described in the JORC table 1 – ASX Announcement 1 July 2024.
•
Refer ASX announcement 5 October 2023 – Exploration Target defined at Kangankunde.
KANGANKUNDE EXPLORATION TARGET
An Exploration Target has been determined for the Central Carbonatite of the Kangankunde Rare
Earths Project in addition to the current Mineral Resource Estimate (MRE), as follows:
Target
Range
Tonnes (millions)
Grade (TREO %)
Exploration Target
Lower
400
2.0%
Central Carbonatite
Upper
800
2.7%
Cautionary Statement: The potential quantity and grade of the Exploration Target is conceptual in nature and therefore is an
approximation. There has been insufficient exploration to estimate a Mineral Resource in the area considered an exploration
target and it is uncertain if further exploration will result in the estimation of a Mineral Resource. The Exploration Target has
been prepared and reported in accordance with the 2012 edition of the JORC Code.
The Exploration Target has been considered following the successful Phase 2 deep drilling program
that showed the continuity of high-grade rare-earth mineralisation up to 800 metres beneath the
limits of the Mineral Resource Estimate. The Central Carbonatite exploration target will be evaluated
by drill programs aimed at creating a reportable resource. This work is anticipated to be conducted
on a staged basis in conjunction with mine development over future years and consistent with
staged operation expansion planning.
The Exploration Target is based on the current geological understanding of the mineralisation
geometry supported by more than 17,000 metres of drilling, resource estimation modelling and
surface mapping but does not consider factors related to geological complexity, possible mining
method or metallurgical recovery factors. This estimate provides an assessment of the potential
scale of the Kangankunde project mineralisation beyond the existing MRE and the work programs
needed to convert this estimate to a resource in the future.
19 ASX announcement 1 July 2024 “Kangankunde Project Stage 1 Outstanding Feasibility Study Results”.
Page | 13
The reported Kangankunde Central Exploration Target is defined by:
•
The resource model for Kangankunde Central which is based on three-dimensional
geological domains defined by drilling and surface mapping.
•
The reported resource from this model was limited by data density to an inferred
classification with the depth limit ranging from 200 metres (800mRL to the 600mRL) to 400
metres (750mRL to 350mRL) below surface.
•
Beneath the inferred resource limit mineralisation has been identified by drill holes
KGKRCDD074 and KGKDD009 to extend to -200mRL, 600 to 800 metres below current MRE
limit.
•
In addition to depth extension, the margins of the mineralisation have not been fully tested
with surrounding wall rock/carbonatite breccias shown to be mineralised where drilled. To
date drilling has not tested fully the lateral extents of this mineralisation.
•
The Exploration Target lower tonnage range of 400 million tonnes assumes a depth
limitation to the 200m RL. This material was included in the assessment of the existing
resource model estimation but has insufficient drilling data to be classified according to
JORC guidelines.
•
The Exploration Target upper tonnage range projects the mineralisation below the current
model limit from the 200mRL to the -200mRL, a further 400 vertical metres beyond the
Exploration Target lower tonnage range depth limit. This depth extent is supported by drill
holes KGKRCDD074 and KGKDD009 that both contained consistent rare earths
mineralisation to this depth. This upper range tonnage assumes the tonnes of the lower 400
metres of the existing resource model (600mRL to 200mRL) will be replicated from 200mRL
to -200mRL.
•
The Exploration Target lower grade range is based on a 10% reduction of the MRE grade to
account for the halo of surrounding lower grade mineralisation, while the upper grade range
is based on an approximation of the higher-grade contiguous carbonatite grades assayed
from KGKDDRC74 and KGKDD009 at depth.
COMPETENT PERSONS’ STATEMENT – KANGANKUNDE MINERAL RESOURCE
The Competent Persons’ consents for the Mineral Resource Estimate for Kangankunde 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 Kangankunde Mineral Resource Estimate is based on and fairly represents, information and
supporting documentation prepared by Mr Geoff Chapman who is a Fellow of the Australian Institute
of Mining and Metallurgy (AusIMM membership number 111889). Mr Chapman is the principal of
geological consultancy GJ Exploration Pty Ltd that is engaged by Lindian Resources Limited, and is
the Competent Person for the Kangankunde Mineral Resource Estimate. Mr Chapman consents to
the inclusion in this Annual Report of the matters based on his information in the form and context
in which it appears.
The information in this Annual Report that relates to Exploration and Metallurgy Results of the
Kangankunde Rare Earths Project is extracted from reports released to the Australian Securities
Exchange (ASX) and which are available to view at www.lindianresources.com.au and for which
Competent Persons’ consents were obtained.
Page | 14
COMPETENT PERSONS’ STATEMENT – KANGANKUNDE ORE RESERVE
The information in this Annual Report that relates to the Ore Reserve for the Kangankunde project is
based on and fairly represents information and supporting documentation compiled by Mr David
Clark, a Competent Person who is a full-time employee of Minero Consulting, a company engaged by
Lindian Resources. Mr Clark is a Fellow of the Australasian Institute of Mining and Metallurgy. Mr
Clark consents to the inclusion in this Annual Report of the matters based on his information in the
form and context in which it appears.
KANGANKUNDE EXPLORATION TARGET
Unless otherwise stated, where reference is made to previous releases of the Exploration Target in
this annual report, the Company confirms that it is not aware of any new information or data that
materially affects the information included in those announcements and all material assumptions
and technical parameters underpinning the Exploration Target included in those announcements
continue to apply and have not materially changed.
GAOUAL BAUXITE PROJECT
The Gaoual Bauxite Project (Gaoual 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 Project. The Gaoual Project’s 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”).
COMPETENT PERSON STATEMENT – GAOUAL PROJECT
The information in this Annual Report that relates to Mineral Resources for the Gaoual 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 Mineral Resource Estimate for the Gaoual 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). Mr Gifford consents to the inclusion in this Annual Report of the matters based on his
information in the form and context in which it appears.
Page | 15
LELOUMA BAUXITE PROJECT
The information in this Annual Report that relates to Mineral Resources for the Lelouma Project is
extracted from an announcement released to the ASX on 6 October 2020 titled “World Class Lelouma
Project Increases Resources to 900Mt20”.
Table 4: Lelouma Project Mineral Resource Statement (Inclusive of the Mineral Resources below
in Table 5)
Cut-off Criteria
Mineral Resource
Category
Tonnes (Mt)
AI2O3 (%)
SiO2 (%)
>40% AI2O3
<10% SiO2
>1m Thick
<1 Strip ratio
(waste:ore
thickness)
Measured
155
47.9
1.8
Indicated
743
44.4
2.1
Measured + Indicated
898
45.0
2.1
Inferred
2
42.9
2.8
Grand total M+I+I
900
45.0
2.1
Table 5: Lelouma Project High Grade Portion (Included within the Mineral Resources in Table 4
above)
Cut-off Criteria
Mineral Resource
Category
Tonnes (Mt)
AI2O3 (%)
SiO2 (%)
>45% Al2O3
<10% SiO2
>1m Thick
<1 Strip Ratio
(waste:ore
thickness)
Measured
115
49.6
1.8
Indicated
284
47.6
2.1
Measured + Indicated
398
48.1
2.0
Inferred
0.1
46.1
2.8
Grand total M+I+I
398
48.1
2.0
COMPETENT PERSONS’ STATEMENT – LELOUMA PROJECT
COMPETENT PERSONS’ STATEMENT – LELOUMA PROJECT
The Lelouma Bauxite Project Mineral Resource Estimate is based on and fairly represents,
information and supporting documentation prepared by Mr Ben Lepley who is a Chartered Geologist
(“CGeol”) of the Geological Society of London. At the time of reporting, Mr Lepley was a full-time
employee of SRK Consulting (UK) Ltd and was the Competent Person for the Lelouma Project Mineral
Resource Estimate. As of May 2023, Mr Lepley is now a full-time employee of SLR Consulting Ltd. Mr
Lepley consents to the inclusion in this Annual Report of the matters based on his information in
the form and context in which it appears, which is unchanged since the original reporting in 2020.
The information in this Annual Report that relates to Mineral Resources for the Lelouma Project is
extracted from an announcement released to the ASX on 6 October 2020 titled “World Class Lelouma
Project Increases Resources to 900Mt”.
20 ASX announcement 6 October 2020
Page | 16
WOULA BAUXITE PROJECT
The Woula Bauxite Project (Woula Project) is located in northwestern Guinea, close to the coast and
just 10km from an existing haul road that connects it to the Katougouma river port.
WOULA PROJECT MINERAL RESOURCE ESTIMATE
The Mineral Resource Estimate for the Woula 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 extraction21.
Table 6 – Woula Project Mineral Resource Statement (inclusive of Mineral Resources stated in
below Table 7)
Cut-off Criteria
Mineral Resource
Category
Tonnes (Mt)
AI2O3 (%)
SiO2 (%)
>34% Al2O3
10% SiO2 / >1m
Thick / <1 Strip
Ratio (waste:ore
thickness)
Inferred
64
38.7
3.1
Total
64
38.7
3.1
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.
Table 7 – Woula Project High Grade (Contained within the Mineral Resources as stated in Table
6)
Cut-off Criteria
Mineral Resource
Category
Tonnes (Mt)
AI2O3 (%)
SiO2 (%)
>40% Al2O3
10% SiO2 / >1m
Thick / <1 Strip
Ratio (waste:ore
thickness)
Inferred
19
41.7
3.2
Total
19
41.7
3.2
COMPETENT PERSONS’ STATEMENTS – WOULA BAUXITE PROJECT
The information in this Annual Report 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 847 Mt of High Grade Resource”.
The Woula Bauxite Project Mineral Resource Estimate is based on and fairly represents, information
and supporting documentation prepared by Mr Mark Campodonic who is a Member with Chartered
Professional Status (Geology) of the Australian Institute of Mining and Metallurgy (“MAusIMM(CP)”).
Mr Campodonic is a full-time employee of SRK Consulting (UK) Ltd and is the Competent Person for
the Woula Bauxite Project Mineral Resource Estimate. Mr Campodonic consents to the inclusion in
this Annual Report of the matters based on his information in the form and context in which it
appears.
21 ASX announcement 23 September 2020
Page | 17
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 2024.
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 (appointed 5-Apr-2017)
•
Resource Mining Corporation Limited
(appointed 9-May-2022)
Former directorships of ASX Listed
Companies in the last three years:
•
AuKing Mining Limited (19-Oct-2022 to 3-Jun-2024)
Interests in Securities 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; resigned 31 May 2024 upon appointment
as CEO
Alwyn Vorster is a thirty-year mining industry veteran 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, and 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 six years, and his 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:
•
ChemX Materials Ltd (appointed 18-Oct-2022)
Former directorships of ASX Listed
Companies in the last three years:
•
Arrow Minerals Ltd (24-Oct-2022 to 21-Jun-2024)
•
BCI Minerals Limited (22-Sep-2016 to 1-Sep-2022)
Interests in Securities in the Company:
•
1,369,444 fully paid ordinary shares
•
7,000,000 Performance Rights
Page | 18
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 in feasibility studies, project
planning/development, coordination, and effectively leveraging capital markets to secure the
appropriate mix of debt/equity funding to successfully complete a mining project.
Other current directorships of
ASX Listed Companies:
•
Resource Mining Corporation Limited
(appointed 22-Nov-2021)
Former directorships of ASX Listed
Companies in the last three years:
•
Victory Metals Limited (22-Jul-2021 to 30-Jul-2024)
•
Volt Resources Limited (1-Jul-22 to 29-Jun-23)
Interests in Securities 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; resigned 14 June 2024 upon appointment as
Project Director
Giacomo Fazio is a highly experienced project, construction and
contract/commercial management professional having held senior
project management roles with Primero Group Limited, Laing O’Rourke and
Forge Group Ltd and was, until recently, a non-executive Director of ASX-listed Volt Resources Ltd.
His experience ranges from feasibility studies to engineering, procurement, construction, and
commissioning of diverse mining resources, infrastructure, oil & gas and energy projects.
Other current directorships of
ASX Listed Companies:
•
Nil
Former directorships of ASX Listed
Companies in the last three years:
•
Volt Resources Limited (1-Jul-19 to 22-Aug-24)
Interests in Securities in the Company:
•
361,112 fully paid ordinary shares
•
1,300,000 Performance Rights
Page | 19
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 several 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
to the intricate technical requirements of alumina refining.
Further, Mr. Occello’s knowledge and expertise are 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:
•
Nil
Former directorships of ASX Listed
Companies in the last three years:
•
Nil
Interests in Securities 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:
•
Nil
Former directorships of ASX Listed
Companies in the last three years:
•
Nil
Interests in Securities 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
Amounts owing for services rendered by key management personnel at 30 June 2024 totaled
$323,035 (inclusive of GST). This comprised amounts owing to Alwyn Vorster of $54,248, Trevor
Matthews $38,016, Park Wei $15,557 and Giacomo Fazio $215,214.
Page | 20
Kellie Davis
Company Secretary since 17 May 2024
Mrs Kellie Davis was appointed Company Secretary effective 17 May 2024. Mrs Davis has 20 years of
experience in accounting and ASX Compliance, predominantly in the resources sector, and has
provided company secretarial compliance services to a number of listed ASX companies in the
exploration and resources sectors. Mrs Davis has a Bachelor of Commerce (Accounting and Finance)
Degree, is a Chartered Accountants Australia & New Zealand member, and is part of the team at
Automic Group providing company secretarial and governance services.
Michael Fry
Former Joint Company Secretary (1 January 2023 to 1 July 2024)
Mr Fry, who served as Joint Company Secretary of Lindian Resources Limited between 1 January 2023
and 1 July 2024, has over 25 years of experience in Company Secretarial, Chief Financial Officer, and
Director roles with ASX-listed companies.
Brett Tucker
Former Joint Company Secretary (1 June 2023 to 17 May 2024)
Mr Tucker, who served as Joint Company Secretary of Lindian Resources Limited between 1 June 2023
and 17 May 2024, has acted as Company Secretary to numerous ASX-listed companies across
various industries. Mr Tucker has a strong compliance background and was part of the team at
Automic Group providing company secretarial and governance services
Page | 21
REMUNERATION REPORT (AUDITED)
This report outlines the remuneration arrangements for Lindian Resources Limited's Key
Management Personnel (KMP) in accordance with the requirements of the Corporation Act 2001 and
its Regulations.
For the purpose of this report, 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 allows the Company to
attract and retain directors of the highest calibre while incurring a cost that is acceptable to
shareholders. The fee structure is 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 periodically by reference to their role, comparable roles at comparable companies and
relevant employment market conditions, ensuring maximum stakeholder benefit from retaining 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
Persons classified as KMP during the year ended 30 June 2024 were
Name
Position
Asimwe Kabunga
Executive Chairman
Alistair Stephens
Chief Executive Officer (to 24 May 2024)
Alwyn Vorster
Chief Executive Officer (from 1 June 2024); Non-Executive Director (21
August 2023 to 31 May 2024)
Giacomo Fazio
Project Director; Non-Executive Director (to 14 June 2024)
Yves Occello
Non-Executive Director
Trevor Matthews
Executive Director (since 21 August 2023)
Park Wei
Non-Executive Director (since 4 September 2023)
Page | 22
Details of the nature and amount of each element of the emolument of each KMP of the Group for
the financial year is as follows:
2024
Short term
Options
Employment
Base
salary &
annual
leave
Director
fees
Consulting
fees
Share
based
payments
Super-
annuation
Total
Performance
related
KMP
$
$
$
$
$
$
%
Asimwe Kabunga
-
60,000
216,259
886,527
1,162,786
76%
Alwyn Vorster1
-
46,620
99,540
221,691
-
367,851
60%
Trevor Matthews1
-
-
221,657
-
-
221,657
0%
Giacomo Fazio
-
55,000
413,900
88,653
-
557,553
16%
Yves Occello
-
60,000
-
88,653
-
148,653
60%
Park Wei2
-
48,479
-
-
-
48,479
0%
Alistair Stephens3
468,394
-
-
(87,484)
26,824
407,734
(21)%
468,394
270,099
951,356
1,198,040
26,824
2,914,713
41%
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 resigned as CEO on 24 May 2024 and received three months’ pay in lieu of notice.
2023
Short term
Options
Employment
Base
salary &
annual
leave
Director
fees
Consulting
fees
Share
based
payments
Super-
annuation
Total
Performance
related
KMP
$
$
$
$
$
$
%
Asimwe Kabunga
-
60,000
283,919
558,861
24,062
926,842
60%
Giacomo Fazio
-
60,000
-
55,886
-
115,886
48%
Yves Occello
-
60,000
-
55,886
-
115,886
48%
Alistair Stephens
345,043
-
-
445,455
23,185
813,683
55%
345,043
180,000
283,919
1,116,088
47,247
1,972,297
57%
There were no other KMP during the financial years ended 30 June 2024 and 30 June 2023.
The Group did not employ the services of any remuneration consultants during the financial year
ended 30 June 2024.
At 30 June 2024, the Group had liabilities of $323,035 for services rendered by KMP (2023: $43,022).
Service Agreements
Executive Chairman
Mr. Asimwe Kabunga's services are by way of a consulting arrangement with annual fees payable
equivalent to $250,000, plus statutory superannuation. Incentives will also be agreed upon, 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.
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 as 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. If the Company
terminates the engagement for cause, the Company is not required to make any payment.
Page | 23
Pursuant to the terms of the agreement, Mr Matthew’s appointment as a director of the Company is
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 $270 per
hour, including 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 $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, Mr Occello and Mr Wei, the company's non-executive directors, receive an annual directors’
fee of $60,000, payable monthly.
Chief Executive Officer
Alwyn Vorster
On 27 May 2024, the Company announced the appointment of Mr Alwyn Vorster as Chief Executive
Officer, effective 1 June 2024.
Mr Vorster is an experienced resource industry executive who has held various CEO and Managing
Director positions over the last 14 years, including Hastings Technology Metals Ltd (rare earths), BCI
Minerals Ltd (salt and potash), and Iron Ore Holdings Ltd (iron ore). Mr Vorster has extensive
international leadership experience in technical, commercial, marketing and corporate roles and a
track record managing mining projects from inception to development.
As part of the commencement package for Mr Vorster, the Company, on 3 June 2024, issued Mr
Vorster 8 million performance rights, with 1 million performance rights vesting immediately and the
remainder vesting in accordance with certain performance-based milestones below (“Executive
Performance Rights”):
Milestone (Vesting Condition)
No. of Performance Rights
Sign-on retention 1
1,000,000
Sufficient Funding 2
1,000,000
Plant construction commencement 3
1,000,000
Plant Construction Completion 4
1,000,000
Stage 2 Study 5
1,000,000
2.5x VWAP 6
1,500,000
3.5x VWAP 7
1,500,000
Total
8,000,000
1 Immediately on appointment as a sign-on retention, escrowed for 6 months;
2 Sufficient funding secured to allow award of main construction contracts and to complete main construction – by 30
September 2024;
3 Kangankunde main plant construction commencement - within 3-months of funding secured;
Page | 24
4 Kangankunde construction completed and commissioning commences - achieved within 10% deviation of budget and
schedule and within 12-months from construction commencement (or a longer period determined by the final Engineering
and Procurement Contract (EPC) or Design and Construct (D & C) contract;
5 Announcement of positive Kangankunde Stage 2 Scoping Study or Pre-Feasibility Study with IRR >15% - by 30 November
2025;
6 LIN 30-day VWAP increased 2.5x against 10-day VWAP on signing date of Consultancy Agreement within 12 months of the
Commencement Date; and
7 LIN 30-day VWAP increased 3.5x against 10-day VWAP on signing date of Consultancy Agreement within 18 months of the
Commencement Date.
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.
Alistair Stephens
On 27 May 2024, the Company announced the resignation of Mr Alistair Stephens as Chief Executive
Officer, effective on Friday 24 May 2024.
Pursuant to the executive service agreement between Mr Stephens and the Company, Mr Stephens
was employed on a salary of $384,000 per annum plus statutory superannuation and was entitled
to a minimum notice period of three months from the Company.
On cessation with the Company, Mr Stephens was paid his statutory obligations and received
500,000 performance rights, being 250,000 Class 8 and 250,000 Class 9 Performance Rights, in
satisfaction of all entitlements.
A combined total of 13,000,000 Class B, Class C and Class D performance rights held by Mr Stephens
were cancelled on cessation of his employment on 24 May 2024 in accordance with their terms and
conditions.
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, assay and technical services are directly contracted by the Company with service providers.
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 2024 (2023: nil).
Performance Rights
On 3 June 2024, the Company issued 8 million performance rights to the incoming Chief Executive
Officer Alwyn Vorster as part of an executive services agreement (refer to Service Agreements section
of the Directors Report for details).
On 4 June 2024, Mr Vorster elected to convert the 1 million performance rights received as a sign-on
retention into 1 million fully paid ordinary shares.
On 27 May 2024, the Company issued 500,000 performance rights to outgoing Chief Executive
Officer Alistair Stephens as part of his termination arrangements.
Page | 25
The performance rights issued to Mr Stephens are subject to milestones as set out below.
Milestone
No. of Performance Rights
Comply with all terms of employment contract that survive termination
for 6 months
250,000
Comply with all terms of employment contract that survive termination
for 12 months
250,000
Total
500,000
Note: each performance right converts into 1 fully paid ordinary share
13,000,000 unvested performance rights held by Mr Stephens, that had been issued to Mr Stephens
on 29 August 2022 as part of his remuneration arrangements following his appointment as Chief
Executive Officer on 8 August 2022, were cancelled upon his cessation of employment in line with
the terms and conditions of those performance rights.
As at 30 June 2024, a total of 15,800,000 performance rights issued to Directors of the Company in
December 2022 remain on issue (30 June 2023: 18,000,000) comprised as follows:
Milestone
Kabunga
No. of Performance
Rights
Fazio
No. of Performance
Rights
Occello
No. of Performance
Rights
LIN market capitalisation1 greater than
$250 million
-
-
200,000
LIN market capitalisation1 greater than
$500 million
3,000,000
300,000
300,000
LIN market capitalisation1 greater than
$1,000 million
5,000,000
500,000
500,000
LIN market capitalisation1 greater than
$1,250 million
5,000,000
500,000
500,000
Total
13,000,000
1,300,000
1,500,000
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.
During the year ended 30 June 2024, a total of 5,200,000 performance rights were converted into
fully paid ordinary shares (year ended 30 June 2023: nil).
Security Holdings
Key Management Personnel Shareholdings
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.
2024
KMPs
Balance at
the start of
the year/
appointment
Shares
purchased
Shares disposed
/ transferred
Performance
rights converted
Balance at
the end of
the year /
resignation
Asimwe Kabunga
121,603,502
1,923,076
-
2,000,000
125,526,578
Yves Occello
-
-
-
-
-
Alwyn Vorster 1
69,444
300,000
1,000,000
1,369,444
Trevor Matthews 2
-
-
-
-
-
Park Wei 3
114,797,079
-
-
-
114,797,079
Giacomo Fazio 4
-
161,112
-
200,000
361,112
Alistair Stephens5
1,270,710
-
-
2,000,000
3,270,710
237,740,735
2,384,188
-
5,200,000
245,324,923
1: Alwyn Vorster was appointed Non-Executive Director on 21 August 2023; appointed CEO effective from 1 June 2024
2: Trevor Matthews was appointed Executive Director on 21 August 2023
3: Park Wei was appointed Non-Executive Director on 4 September 2023
4: Jack (Giacomo) Fazio resigned as Director on 14 June 2024
5: Alistair Stephens resigned as CEO effective 24 May 2024
Page | 26
2023
KMPs
Balance at
the start of
the year/
appointment
Shares
purchased
Shares disposed /
transferred
Performance rights
converted
Balance at
the end of
the year
Asimwe Kabunga
90,275,000
31,328,502
-
-
121,603,502
Giacomo Fazio
-
-
-
-
-
Yves Occello
-
-
-
-
-
Alistair Stephens
-
1,270,710
-
-
1,270,710
90,275,000
32,599,212
-
-
122,874,212
Key Management Personnel Options
There were no unlisted options granted over ordinary shares during the current year affecting
remuneration of directors and other key management personnel.
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:
2024
Vested option
KMPs
Balance at
the start of
the year/
appointment
Options
purchased
Options
converted
Options
expired
Balance at
the end of
the year/
resignation
Exercisable
Non-
exercisable
Asimwe Kabunga
1,369,048
961,538
-
-
2,330,586
2,330,586
-
Yves Occello
-
-
-
-
-
-
-
Alwyn Vorster 1
-
-
-
-
-
-
-
Trevor Matthews 2
-
-
-
-
-
-
-
Park Wei 3
30,452,381
-
-
-
30,452,381
30,452,381
-
Giacomo Fazio 4
-
-
-
-
-
-
-
Alistair Stephens 5
135,355
-
-
-
135,355
135,355
-
31,956,784
961,538
-
-
32,918,322
32,918,322
-
1: Alwyn Vorster was appointed Non-Executive Director on 21 August 2023; appointed CEO effective from 1 June 2024
2: Trevor Matthews was appointed Executive Director on 21 August 2023
3: Park Wei was appointed Non-Executive Director on 4 September 2023
4: Jack (Giacomo) Fazio resigned as Director on 14 June 2024
5: Alistair Stephens resigned as CEO effective 24 May 2024
2023
Vested option
KMPs
Balance at
the start of
the year/
appointment
Options
purchased
Options
converted
Options
expired
Balance at
the end of
the year/
resignation
Exercisable
Non-
exercisable
Asimwe Kabunga
12,500,000
1,369,048
(12,500,000)
-
1,369,048
1,369,048
-
Giacomo Fazio
-
-
-
-
-
-
-
Yves Occello
-
-
-
-
-
-
-
Alistair Stephens
-
135,355
-
-
135,355
135,355
-
12,500,000
1,504,403
(12,500,000)
-
1,504,403
1,504,403
-
Page | 27
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:
2024
KMPs
Balance at
the start of
the year/
appointment
Rights
granted
Rights
converted
Performance
Rights cancelled
/ expired
Balance at
the end of
the year/ on exit
Asimwe Kabunga1
15,000,000
-
(2,000,000)
-
13,000,000
Giacomo Fazio2
1,500,000
-
(200,000)
-
1,300,000
Yves Occello2
1,500,000
-
-
-
1,500,000
Alwyn Vorster 1
-
8,000,000
(1,000,000)
7,000,000
Trevor Matthews 2
-
-
-
-
-
Park Wei 3
-
-
-
-
-
Alistair Stephens3
15,000,000
500,000
(2,000,000)
(13,000,000)
500,000
33,000,000
8,500,000
(5,200,000)
(13,000,000)
23,300,000
2023
KMPs
Balance at
the start of
the year/
appointment
Rights
granted
Rights disposed
/ converted /
transferred
Performance
Rights expired
Balance at
the end of
the year
Asimwe Kabunga
25,500,000
15,000,000
-
(25,500,000)
15,000,000
Giacomo Fazio
-
1,500,000
-
-
1,500,000
Yves Occello
-
1,500,000
-
-
1,500,000
Alistair Stephens
-
15,000,000
-
-
15,000,000
25,500,000
33,000,000
-
(25,500,000)
33,000,000
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
and development 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:
2024
2023
2022
2021
2020
Revenue and other income
$
421,051
22,816
10
35,058
58,703
Net loss
$
(4,887,057)
(7,780,981)
(1,165,145)
(1,458,696)
(1,862,151)
Loss per share
Cents
(0.42)
(0.86)
(0.16)
(0.21)
(0.35)
Share price at year end
Cents
0.105
0.360
0.120
0.021
0.011
End of remuneration report
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:
Name
Role
Ordinary Shares
Performance
Rights
Unlisted Options over
Ordinary Shares
exercisable at
30 cents each
Asimwe Kabunga
Director
125,526,578
13,000,000
2,330,586
Yves Occello
Director
-
1,500,000
-
Trevor Matthews
Director
-
-
-
Park Wei
Director
114,797,079
-
30,452,381
Alwyn Vorster
Executive
1,369,444
7,000,000
Giacomo Fazio
Executive
361,112
1,300,000
-
Page | 28
RESULTS OF OPERATIONS
The net loss after taxation attributable to the members for the year to 30 June 2024 was $4,887,056
(2023: $7,780,981) and the net assets of the Group at 30 June 2024 were $63,212,326 (2023:
$32,987,391).
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 2024 financial year, Lindian was focused 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.
The 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 the rare earth and bauxite projects developed and in operation.
Refer to Operations Review for a detailed overview of Lindian’s projects.
CORPORATE
Capital structure
On 20 July 2023, Lindian completed a broker managed placement issuing 106,060,606 fully paid
ordinary shares at $0.33 per share to raise $35 million before costs.
On 14 August 2023, Lindian issued 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 16 August 2023, Lindian issued 1,923,076 fully paid ordinary shares and 961,568 free attaching
options pursuant to a placement of $500,000 by Director Asimwe Kabunga, which was approved by
shareholders on 17 July 2023.
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 that 1,533,742 options having an exercise price of
$0.032 and an expiry date of 28 September 2023 had lapsed.
Over the course of the financial year, the Company received a total of $411,695 from the conversion
of options.
Malawi – Kangankunde Acquisition
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 the issued share capital 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
Page | 29
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.
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 and Ore Reserves
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.
Page | 30
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. The Group is subject to extensive laws
and regulations governing the protection and management of the health and safety of workers.
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 construction activities and operations, 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
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 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
Subsequent to year end, the following material events occurred:
Page | 31
Kangankunde Rare Earths Project Maiden Mineral Resource Estimate
On 1 July 2024, Lindian announced the results of a Stage 1 Feasibility Study reflecting a technically
low risk and economically robust project with the following key metrics:
•
Stage 1 post-tax Net Present Value (NPV8 real) of US$555M (A$831M);
•
an IRR of 80%;
•
average annual EBITDA of US$84M1 (A$124.5M);
•
Pre-production capital cost of US$40M (A$60M ) which includes 12.5% contingency, making
it one of the lowest capital cost rare earths projects under development;
•
Average annual FOB operating cost of US$2.92/kg TREO, positioning Kangankunde in the
lowest cost quartile of the global rare earths industry; and
•
Payback period of less than 2-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
Number of Meetings
Eligible to Attend
Number of
Meetings Attended
Asimwe Kabunga
4
4
Giacomo Fazio
4
4
Yves Occello
4
4
Alwyn Vorster 1
4
4
Trevor Matthews 1
4
4
Park Wei 2
4
4
1: appointed 21 August 2023
2: appointed 4 September 2023
SHARE OPTIONS
At 30 June 2024, there were 84,126,549 unissued ordinary shares under option (2023: 97,032,215
options).
During the year, 961,538 (2023: 86,941,407) options were issued, 12,333,462 options were exercised
(2023: 73,771,539) and 1,533,742 options expired (2022: 10,310,000 ).
Post year end, there have been no changes to options on issue.
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
0.10
29 August 2025
10,000,000
0.12
6 June 2025
7,500,000
0.25
3 August 2025
32,318,859
0.30
9 December 2025
17,307,690
0.35
3 April 2026
84,126,549
No option holder has any right under the options to participate in any other share issue of the
company or any other entity.
Page | 32
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 2024 Corporate Governance Statement, which provides detailed information
about governance, and a copy of Lindian’s Appendix 4G which sets out the Company’s compliance
with the recommendations in the fourth edition of the ASX Corporate Governance Council’s
Principles and Recommendations is available on the corporate governance section of the Company’s
website at https://www.lindianresources.com.au/corporate.
AUDITOR INDEPENDENCE AND NON-AUDIT SERVICES
Section 307C of the Corporations Act 2001 requires the Company’s auditors to provide the Directors
of Lindian Resources Limited with an Independence Declaration in relation to the audit of the full
year financial report. A copy of that declaration forms part of this report and is located on page 63.
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
30 September 2024
Page | 33
CONSOLIDATED STATEMENT OF PROFIT OR LOSS
AND OTHER COMPREHENSIVE INCOME
For the year ended 30 June 2024
Note
2024
$
2023
$
Revenue
Interest income
421,051
13,836
Other income
-
8,980
Expenses
Depreciation
(13,207)
(113,721)
Consulting and directors’ fees
(1,452,039)
(884,034)
Exploration and evaluation expenses
(316,816)
(51,125)
Travel associated costs
(134,606)
(280,863)
Foreign currency gains / (losses)
240,937
(1,420,151)
Investor relations and promotion
(682,028)
(2,654,457)
Share based payments expense
(1,198,040)
(1,116,088)
Other expenses
3
(1,752,309)
(1,283,358)
Loss before income tax
(4,887,057)
(7,780,981)
Income tax (expense)/benefit
4
-
-
Loss after income tax
(4,887,057)
(7,780,981)
Other comprehensive income, net of income tax
Items that may be reclassified subsequently to profit or loss
Exchange differences on translation of foreign
operations
(97,744)
(140,733)
Other comprehensive loss for the year, net of income tax
(97,744)
(140,733)
Total comprehensive loss for the year
(4,984,801)
(7,921,714)
Loss attributable to:
Owners of Lindian Resources Limited
(4,781,174)
(7,733,881)
Non-controlling interests
(105,883)
(47,100)
(4,887,057)
(7,780,981)
Total comprehensive loss attributable to:
Owners of Lindian Resources Limited
(4,878,918)
(7,887,380)
Non-controlling interests
(105,883)
(34,334)
(4,984,801)
(7,921,714)
Loss per share attributable to owners of Lindian
Resources Limited
Basic and diluted loss per share (cents per share)
17
(0.42)
(0.83)
The accompanying notes form part of these financial statements.
Page | 34
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As at 30 June 2024
Note
2024
$
2023
$
Current Assets
Cash and cash equivalents
5
13,252,990
7,616,206
Trade and other receivables
6
129,823
138,464
Prepayments
7
60,753
40,333
Total current assets
13,443,566
7,795,003
Non-current Assets
Deferred exploration and evaluation expenditure
8
65,685,871
56,483,333
Property, plant and equipment
9
4,844
18,051
Total non-current assets
65,690,715
56,501,384
Total assets
79,134,281
64,296,387
Current Liabilities
Trade and other payables
10
825,337
1,084,915
Amount due under contract
11
-
15,112,041
Total current liabilities
825,337
16,196,956
Non-Current Liabilities
Amount due under contract
11
15,096,618
15,112,040
Total non-current liabilities
15,096,618
15,112,040
Total liabilities
15,921,955
31,308,996
Net assets
63,212,326
32,987,391
Equity
Share capital
12
103,190,747
69,179,051
Reserves
13
14,354,701
13,254,405
Accumulated losses
14
(54,606,865)
(49,825,691)
62,938,583
32,607,765
Non-controlling interests
15
273,743
379,626
Total equity
63,212,326
32,987,391
The accompanying notes form part of these financial statements.
Page | 35
CONSOLIDATED STATEMENT OF CASH FLOWS
For the year ended 30 June 2024
Note
2024
$
2023
$
Cashflows from Operating Activities
Payments to suppliers and employees
(4,464,207)
(3,091,013)
Interest received
421,051
13,693
Net cash used in operating activities
24
(4,043,156)
(3,077,320)
Cashflows from Investing Activities
Payments for acquisition of exploration projects
11
(14,812,401)
(14,404,095)
Payments for exploration expenditure
8
(9,519,354)
(7,360,943)
Payments for plant and equipment
9
-
(26,343)
Net cash used in investing activities
(24,331,755)
(21,791,381)
Cashflows from Financing Activities
Proceeds from issue of shares
12
35,500,000
27,500,000
Proceeds from exercise of options
12
411,695
4,497,490
Share issue costs
(1,900,000)
(1,690,499)
Net cash from financing activities
34,011,695
30,306,991
Net increase in cash held
5,636,784
5,438,290
Cash and cash equivalents at beginning of period
7,616,206
2,177,922
Foreign exchange on cash balances
-
(6)
Cash and cash equivalents as at year end
5
13,252,990
7,616,206
The accompanying notes form part of these financial statements.
Page | 36
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the year ended 30 June 2024
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 2023
69,179,051
(49,825,691) 4,106,626
9,038,258
109,521
32,607,765
379,626
32,987,391
Loss for the year
-
(4,781,174)
- - -
(4,781,174)
(105,883)
(4,887,057)
Other comprehensive loss
-
-
- -
(97,744)
(97,744)
-
(97,744)
Total comprehensive loss
-
(4,781,174)
- -
(97,744)
(4,878,918)
(105,883)
(4,984,801)
Transactions with owners in
their capacity as owners
Shares issued
35,500,000
-
-
- - 35,500,000 -
35,500,000
Costs of share issue
(1,900,000)
-
-
- -
(1,900,000) -
(1,900,000)
Exercise of options
411,696
-
-
- -
411,696 -
411,696
Share based payments
-
-
-
1,198,040 -
1,198,040
-
1,198,040
At 30 June 2024
103,190,747
(54,606,865) 4,106,626
10,236,298
11,777 62,938,583
273,743
63,212,326
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
38,964,460
(42,091,810)
4,106,626
5,609,570
263,020
6,851,866
413,960
7,265,826
Loss for the year
-
(7,733,881)
-
- -
(7,733,881)
(47,100)
(7,780,981)
Other comprehensive loss
-
-
-
-
(153,499)
(153,499)
12,766
(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
27,683,000
-
-
- -
27,683,000 -
27,683,000
Exercise of options
4,497,490
-
-
- -
4,497,490
-
4,497,490
Costs of share issue
(1,965,899)
-
-
- -
(1,965,899) -
(1,965,899)
Share based payments
-
-
-
3,428,688 -
3,428,688
-
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.
Page | 37
NOTES TO THE FINANCIAL STATEMENTS
1.
Summary of Material Accounting Policies
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.
(a) Basis of preparation
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
30 September 2024.
(b) Going concern
This report has been prepared on the going concern basis, which contemplates the continuity of
normal business activity and the realisation of assets and settlement of liabilities in the normal
course of business.
At 30 June 2024, the cash and cash equivalents balance was $13,252,990 (2023: $7,616,206). And as
disclosed in the Statement of Comprehensive Income, the Group recorded a net loss after tax for the
year ended 30 June 2024 of $4,887,057 (2023: $7,780,981 loss) and as disclosed in the Statement of
Cash Flows recorded net cash outflows from operating activities of $4,043,156 (2023: $3,077,320),
net cash outflows from investing activities of $24,331,755 (2023: $21,791,381), and net cash inflows
from financing activities of $34,011,695 (2023: $30,306,991).
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 of this financial report.
Based on the cash flow forecasts, the directors are satisfied that the going concern basis of
preparation is appropriate.
(c) Compliance statement
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).
Page | 38
(d) Basis of consolidation
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 16 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.
(e) Revenue
Revenue is recognised to the extent that 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:
(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 16.
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.
Page | 39
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.
(g) Impairment of non-financial assets
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.
(h) Deferred exploration and evaluation expenditure
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.
Page | 40
Each area of interest is limited to a size related to a known or probable mineral resource capable of
supporting a mining operation.
Exploration and evaluation expenditure for each area of interest is carried forward as an asset
provided that one of the following conditions is met:
•
such costs are expected to be recouped through successful development and exploitation
of the area of interest or, alternatively, by its sale; or
•
exploration and evaluation activities in the area of interest have not yet reached a stage
which permits a reasonable assessment of the existence or otherwise of economically
recoverable reserves, and active and significant operations in relation to the area are
continuing.
Expenditure which fails to meet the conditions outlined above is written off. Furthermore, the
Directors regularly review the carrying value of exploration and evaluation expenditure and make
write downs if the values are not expected to be recoverable.
Identifiable exploration assets acquired are recognised as assets at their cost of acquisition, as
determined by the requirements of AASB 6 Exploration for and Evaluation of Mineral Resources.
Exploration assets acquired are reassessed on a regular basis and these costs are carried forward
provided that at least one of the conditions referred to in AASB 6 is met.
Exploration and evaluation expenditure incurred subsequent to acquisition in respect of an
exploration asset acquired, is accounted for in accordance with the policy outlined above for
exploration expenditure incurred by or on behalf of the entity.
Acquired exploration assets are not written down below acquisition cost until such time as the
acquisition cost is not expected to be recovered.
When an area of interest is abandoned, any expenditure carried forward in respect of that area is
written off.
Expenditure is not carried forward in respect of any area of interest/mineral resource unless the
Group’s rights of tenure to that area of interest are current.
(i) Cash and cash equivalents
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.
(j) Income tax
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
Page | 41
income except where it relates to items that may be charged or credited directly to equity, in which
case the deferred tax is adjusted directly against equity.
Deferred income tax assets are recognised for all deductible temporary differences, carry forward of
unused tax assets and unused tax losses to the extent that it is probable that future tax profits will
be available against which deductible temporary differences can be utilised.
The amount of benefits brought to account or which may be realised in the future is based on tax
rates (and tax laws) that have been enacted or substantially enacted at the balance date and the
anticipation that the Group will derive sufficient future assessable income to enable the benefit to
be realised and comply with the conditions of deductibility imposed by the law.
The carrying amount of deferred tax assets is reviewed at each balance date and only recognised to
the extent that sufficient future assessable income is expected to be obtained.
Income taxes relating to items recognised directly in equity are recognised in equity and not in the
statement of comprehensive income.
Deferred tax assets and deferred tax liabilities are offset only if a legally enforceable right exists to
set off current tax assets against current tax liabilities and the deferred tax assets and liabilities
relate to the same taxable entity and the same taxation authority.
(k) Segment information
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.
(l) Earnings per share
Basic 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 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.
(m) Share based payment transactions
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.
Page | 42
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.
(n) Comparative figures
When required by Accounting Standards, comparatives have been adjusted to conform to changes
in presentation for the current financial year.
(o) Fair value measurement
When an asset or liability, financial or non-financial, is measured at fair value for recognition or
disclosure purposes, the fair value is based on the price that would be received to sell an asset or
paid to transfer a liability in an orderly transaction between market participants at the
measurement date; and assumes that the transaction will take place either: in the principle market;
or in the absence of a principal market, in the most advantageous market.
Fair value is measured using the assumptions that market participants would use when pricing the
asset or liability, assuming they act in their economic best interest. For non-financial assets, the fair
value measurement is based on its highest and best use. Valuation techniques that are appropriate
in the circumstances and for which sufficient data are available to measure fair value, are used,
maximising the use of relevant observable inputs and minimising the use of unobservable inputs.
Assets and liabilities measured at fair value are classified, into three levels, using a fair value
hierarchy that reflects the significance of the inputs used in making the measurements.
Page | 43
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.
(p) Critical accounting estimates and judgements
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.
(q) Adoption of new and revised standards
Changes in accounting policies on initial application of Accounting Standards
In the year ended 30 June 2024, 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.
Page | 44
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 2024. 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.
(r) Parent entity information
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 25.
2. Segment Information
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 2024
Tanzania
$
Guinea
$
Malawi
$
Australia
$
Total
$
Revenue
Interest income
-
-
671
420,380
421,051
Total segment revenue
-
-
671
420,380
421,051
Expenditure
Depreciation expense
-
-
-
13,207
13,207
Consulting and directors’ fees
5,994
86,716
-
1,359,329
1,452,039
Exploration and evaluation
expenses
12,849
303,967
-
-
316,816
Travel associated costs
3,402
-
44,737
86,467
134,606
Foreign exchange gains
-
-
-
(240,937)
(240,937)
Investor relations and
promotion
-
-
90,428
591,600
682,028
Share based payments
-
-
-
1,198,040
1,198,040
Other expenses
43,161
179,463
143,908
1,385,776
1,752,309
Total segment expenditure
65,406
570,146
7279,073
4,393,483
5,308,108
Loss before income tax
(65,406)
(570,146)
(278,402)
(3,973,103)
(4,887,057)
SEGMENT ASSETS
Cash and cash equivalents
41,304
17,214
128,223
13,066,249
13,252,990
Property, plant & equipment
-
-
-
4,844
4,844
Exploration & evaluation
-
4,504,740
61,181,131
-
65,685,871
Other assets
410
21,691
55,919
112,556
190,576
Segment operating assets
41,714
4,543,645
61,365,273
13,183,649
79,134,281
Total segment assets
41,714
4,543,645
61,356,273
13,183,649
79,134,281
SEGMENT LIABILITIES
Accounts Payable
7,681
29,885
92,161
695,610
825,337
Acquisition liability
-
-
15,096,618
-
15,096,618
Segment operating liabilities
7,681
29,885
15,188,779
695,610
15,921,955
Total segment liabilities
7,681
29,885
15,188,779
695,610
15,921,955
Segment net assets
34,033
4,513,760
46,176,494
12,488,039
63,212,326
Page | 45
30 June 2023
Tanzania
$
Guinea
$
Malawi
$
Australia
$
Total
$
Revenue
Interest income
-
-
143
13,693
13,836
Other income
-
-
-
8,980
8,980
Total segment revenue
-
-
143
22,673
22,816
Expenditure
Depreciation expense
-
-
-
113,721
113,721
Consulting and directors’ fees
196
52,618
-
831,220
884,034
Exploration and evaluation
expenses
9,792
41,333
-
51,125
Travel associated costs
2,063
68,823
2,001
207,976
280,863
Foreign exchange losses
-
-
-
1,420,151
1,420,151
Investor relations and
promotion
-
-
-
2,654,457
2,654,457
Share based payments
-
-
-
1,116,088
1,116,088
Other expenses
60,221
168,120
119,476
935,541
1,283,358
Total segment expenditure
72,272
330,894
121,477
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
35,274
17,214
157,109
7,406,609
7,616,206
Property, plant & equipment
-
-
-
18,051
18,051
Exploration & evaluation
-
4,504,740
51,978,593
-
56,483,333
Other assets
410
23,277
41,682
113,428
178,797
Segment operating assets
35,684
4,545,231
52,177,384
7,538,088
64,296,387
Total segment assets
35,684
4,545,231
52,177,384
7,538,088
64,296,387
SEGMENT LIABILITIES
Accounts Payable
7,681
29,885
157,405
889,944
1,084,915
Acquisition liability
-
-
30,224,081
-
30,224,081
Segment operating liabilities
7,681
29,885
30,381,486
889,944
31,308,996
Total segment liabilities
7,681
29,885
30,381,486
889,944
31,308,996
Movement in non-current
assets
-
8,855
51,211,959
18,051
51,238,865
3. Other Expenses
2024
$
2023
$
Accounting, company secretarial, audit and tax fees
459,422
386,918
Insurance
122,469
93,806
Legal fees
261,863
134,257
Shareholder meeting, listing and share registry costs
229,204
193,548
Office related costs
37,100
24,564
Salary and superannuation
503,577
368,229
Other
138,674
82,036
Total other expenses
1,752,307
1,283,358
Page | 46
4. Income Tax
2024
$
2023
$
Income tax expense
-
-
Major component of tax expense/(benefit) for the year:
Current tax
-
-
Deferred tax
-
-
-
-
Numerical reconciliation between aggregate tax expense recognised in the statement of
comprehensive income and tax expense calculated per the statutory income tax rate.
2024
$
2023
$
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
(4,887,057)
(7,780,981)
2024
$
2023
$
Tax at the group rate of 30% (2023: 30%)
(1,489,377)
(2,341,614)
Non-deductible expenses
1,194,372
(2,204,021)
Non-assessable income
(783,690)
(227,957)
Movement in unrecognised temporary differences
1,078,696
365,550
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
4,701,626
4,845,440
Other deferred tax balances
1,180,311
396,621
5,881,938
5,242,061
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
5. Cash and Cash Equivalents
2024
$
2023
$
Cash at bank
13,252,990
7,616,206
13,252,990
7,616,206
Cash at bank earns interest at floating rates based on daily bank deposit rates.
Page | 47
6. Trade and Other Receivables - Current
2024
$
2023
$
GST receivable
59,464
77,602
Other receivable
70,359
60,862
129,823
138,464
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
2024
$
2023
$
Prepaid expenditure
60,753
40,333
60,753
40,333
8. Deferred Exploration and Evaluation Expenditure
2024
2023
$
$
Exploration and evaluation phase – at cost
At beginning of the year
56,483,333
5,157,090
Acquisition – Kangankunde Rare Earth Project
-
43,282,548
Exploration expenditure during the year
9,202,538
8,043,695
Total exploration and evaluation
65,685,871
56,483,333
The deferred exploration and evaluation expenditure consists of expenditure on the Group’s
Kangankunde Rare Earths Project in Malawi and the Gaoual, Lelouma and Woula Bauxite Projects in
Guinea. The recoupment of costs carried forward in relation to areas of interest in the exploration
and evaluation phases is dependent on the successful development and commercial exploitation
or sale of respective areas.
The breakdown of deferred exploration and evaluation expenditure by Project at the end of the
current and previous year is reconciled as follows:
2024
$
2023
$
Exploration and evaluation phase – at cost
Kangankunde Rare Earth Project, Malawi
61,181,131
51,978,593
Gaoual Bauxite Project, Guinea
1,847,872
1,847,872
Lelouma Bauxite Project, Guinea
1,647,421
1,647,421
Woula Bauxite Project Guinea
1,009,447
1,009,447
Total exploration and evaluation
65,685,871
56,483,333
Page | 48
9. Plant and Equipment
2024
$
2023
$
Plant and equipment – at cost
26,343
164,878
Accumulated depreciation
(21,499)
(146,827)
Net book amount
4,844
18,051
Balance at the beginning of the year
18,051
105,429
Acquisitions
-
26,343
Depreciation expense
(13,207)
(113,721)
Balance at the end of the year
4,844
18,051
10. Trade and Other Payables
2024
$
2023
$
Trade payables and accruals
825,337
1,084,915
825,337
1,084,915
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.
11. Amount due under contract
2024
$
2023
$
Acquisition Liability – Kangankunde Project 1
15,096,618
30,224,081
15,096,618
30,224,081
Disclosed as:
2024
$
2023
$
Current liability
-
15,112,041
Non-current liability
15,096,618
15,112,040
15,096,618
30,224,081
Reconciliation of amounts due under contract at 30 June 2024 is as follows:
Note
2024
$
2023
$
Opening balance
30,224,081
-
Liability on acquisition of Kangankunde Project
(US$30,000,000)
-
43,282,548
Less: Tranche 1 Payment (US$2,500,000)
-
(3,552,050)
Less: Tranche 2 Payment (US$7,500,000)
-
(10,852,045)
Less: Tranche 3 Payment (US$10,000,000)
(14,812,401)
-
Foreign exchange (gains) / losses
30
(315,062)
1,345,628
Total due at end of year
15,096,618
30,224,081
Page | 49
1.
As at 30 June 2024, Lindian has one further tranches to pay in relation to its acquisition of
100% of RVRD, the 100% owner of the Kangankunde Project.
The final tranche (Tranche 4) of US$10.0 million (A$15,096,618 based on the USD: AUD
exchange rate prevailing at 30 June 2024 of USD1 : AUD0.6624) is due for payment in July
2026 or upon commercial production being achieved. Lindian expects to enter commercial
production during calendar year 2025. No discount has been applied due to the fact that
Lindian expects to make payment during 2025.
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.
12. Share Capital
a) Share capital
2024
Number
2024
$
2023
Number
2023
$
Ordinary shares fully paid
1,152,922,236
103,190,746
1,027,405,092
69,179,051
1,152,922,236
103,190,746
1,027,405,092
69,179,051
b) Movement in shares on issue
2024
number
2024
$
2023
number
2023
$
Balance at the beginning of the year
1,027,405,092
69,179,051
829,250,771
38,964,460
Shares issued – placement Aug-2022
-
-
15,000,000
3,000,000
Shares issued – placement Dec-2022
-
-
76,190,476
16,000,000
Shares issued – placement Apr-2023
-
-
32,692,306
8,500,000
Shares issued – placement Jul-2023
107,983,682
35,500,000
-
-
Shares issued – in lieu of invoice for
services to third party
-
-
500,000
183,000
Cash received for option exercise
-
-
1,000,000
-
Exercise of options
12,333,462
411,696
72,771,539
4,497,490
Conversion of performance rights
5,200,000
-
-
-
Less fundraising costs
-
(1,900,000)
-
(1,965,899)
Balance at the end of the year
1,152,922,236
103,190,747
1,027,405,092
69,179,051
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 $63,212,326 at 30 June 2024 (2023: surplus of $32,987,391). 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 2024, there were 84,126,549 unissued ordinary shares under option (2023: 97,032,215
options).
Page | 50
During the year, 961,538 (2023: 86,941,407) options were issued, 12,333,462 options were exercised
(2023: 73,771,539) and 1,533,742 options expired (2023: 10,310,000).
Post year end, there have been no changes to options on issue.
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
0.10
29 August 2025
10,000,000
0.12
6 June 2025
7,500,000
0.25
3 August 2025
32,318,859
0.30
9 December 2025
17,307,690
0.35
3 April 2026
84,126,549
No option holder has any right under the options to participate in any other share issue of the
company or any other entity.
The movement in options during the year was as follows.
2024
number
2023
number
At 1 July
97,032,215
94,172,347
Options issued
961,538
86,941,407
Options exercised during the period
(12,333,462)
(73,771,539)
Options expired
(1,533,742)
(10,310,000)
At 30 June
84,126,549
97,032,215
f) Performance shares & rights
At 30 June 2024, there were 23,300,000 performance shares and rights on issue (2023: 33,000,000
performance shares and rights).
The movement in performance shares and rights are set out below. No performance shares or rights
vested during the period.
2024
Number
2023
Number
At beginning of period – Class B Performance shares
-
30,000,000
At beginning of period – Performance Rights
33,000,000
-
Issue of Performance Rights
8,500,000
33,000,000
Conversion of Performance Rights
(5,200,000)
-
Cancellation of Performance Rights
(13,000,000)
-
Expiry of Class B Performance Shares
-
(30,000,000)
At end of period
23,300,000
33,000,000
Number vested and capable of being converted
200,000
4,400,000
Each Performance Share and Each Performance Right converts into 1 share for nil consideration.
Page | 51
The details of the performance rights issued during the year are as follows:
Type
Number
Issued To
Expiry
Vesting conditions
Performance Rights –
Class 1
1,000,000
Alwyn Vorster
2 years from
date of issue
Sign-on retention 1
Performance Rights –
Class 2
1,000,000
Alwyn Vorster
2 years from
date of issue
Sufficient Funding 2
Performance Rights –
Class 3
1,000,000
Alwyn Vorster
2 years from
date of issue
Plant construction
commencement 3
Performance Rights –
Class 4
1,000,000
Alwyn Vorster
2 years from
date of issue
Plant Construction
Completed 4
Performance Rights –
Class 5
1,000,000
Alwyn Vorster
2 years from
date of issue
Stage 2 Study 5
Performance Rights –
Class 6
1,500,000
Alwyn Vorster
2 years from
date of issue
2.5x VWAP 6
Performance Rights –
Class 7
1,500,000
Alwyn Vorster
2 years from
date of issue
3.5x VWAP 7
Performance Rights –
Class 8
250,000
Alistair Stephens
2 years from
date of issue
6 months from issue
Performance Rights –
Class 9
250,000
Alistair Stephens
2 years from
date of issue
12 months from issue
Total Number
8,500,000
1 Immediately on appointment as a sign-on retention, escrowed for 6 months;
2 Sufficient funding secured to allow award of main construction contracts and to complete main construction – by 30
September 2024;
3 Kangankunde main plant construction commencement - within 3-months of funding secured;
4 Kangankunde construction completed and commissioning commences - achieved within 10% deviation of budget and
schedule and within 12-months from construction commencement (or a longer period determined by the final Engineering
and Procurement Contract (EPC) or Design and Construct (D & C) contract;
5 Announcement of positive Kangankunde Stage 2 Scoping Study or Pre-Feasibility Study with IRR >15% - by 30 November
2025;
6 LIN 30-day VWAP increased 2.5x against 10-day VWAP on signing date of Consultancy Agreement within 12 months of the
Commencement Date; and
7 LIN 30-day VWAP increased 3.5x against 10-day VWAP on signing date of Consultancy Agreement within 18 months of the
Commencement Date.
Fair value of the equity-settled 8,500,000 performance rights issued have been valued at 1,062,500
based on the closing share price of $0.125 on 24 May 2024, the date upon which the Company
contractually agreed to issue the above performance rights.
The fair value of $1,062,500 is expected to be expensed as follows:
Class
Total fair value
FY24
FY25
FY26
PR-Tranche 1
$125,000
$125,000
-
-
PR-Tranche 2
$125,000
$33,730
$91,270
-
PR-Tranche 3
$125,000
$19,495
$105,505
-
PR-Tranche 4
$125,000
$7,290
$78,259
$39,451
PR-Tranche 5
$125,000
$7,699
$82,654
$34,647
PR-Tranche 6
$187,500
$17,466
$170,034
-
PR-Tranche 7
$187,500
$11,010
$118,200
$58,290
PR-Tranche 8
$31,250
$5,036
$26,214
-
PR-Tranche 9
$31,250
$2,935
$28,315
-
Total
$1,062,500
$229,661
$700,451
$132,388
Page | 52
Note that the Tranche 1 performance rights issued to Chief Executive Officer, Alwyn Vorster, vested
on his appointment and were converted into fully paid ordinary shares. Milestones for all other
performance rights on issue are yet to be achieved.
13. Reserves
2024
$
2023
$
Share based payments reserve
10,236,298
9,038,258
Option reserve
4,106,626
4,106,626
Foreign currency translation reserve
11,777
109,521
14,354,701
13,254,405
Movement in reserves
Share based payments reserve
2023
$
2022
$
Balance at the beginning of the year
9,038,258
5,609,570
Recognition of share-based payments for performance rights issued to
Share based payments - Directors
1,063,833
670,633
Share based payments – Chief Executive Officer (incoming)
221,691
-
Share based payments – Chief Executive Officer (outgoing)
(87,484)
445,455
Share issue costs
-
275,400
Investor relations fees
-
2,037,200
Balance at the end of the year
10,236,298
9,038,258
The share-based payment reserve is used to record the fair value of securities issued as part of
compensation.
Option reserve
2024
$
2023
$
Balance at the beginning of the year
4,106,626
4,106,626
Balance at the end of the year
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
2024
$
2023
$
Balance at the beginning of the year
109,521
263,020
Exchange difference on translation of foreign operation
attributable to owners of Lindian Resources Limited
(97,744)
(153,499)
Balance at the end of the year
11,777
109,521
14. Accumulated Losses
2024
$
2023
$
At beginning of the year
49,825,691
42,091,810
Loss for the year attributable to owners of Lindian Resources
Limited
(4,781,174)
7,733,881
Balance at the end of the year
(54,606,865)
49,825,691
Page | 53
15. Non-controlling Interests
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.
2024
2023
$
$
Opening balance
379,626
413,960
Gain / (Loss) allocated to non-controlling interest
(105,883)
(47,100)
Other comprehensive loss allocated to non-controlling interest
-
12,766
Closing balance
273,743
379,626
16. Investments in Subsidiaries
The consolidated financial statements at 30 June 2024 incorporate the assets, liabilities and results
of the following subsidiaries:
Country of
Incorporation
2024
%
2023
%
Lindian Rare Earths Limited
United Kingdom
100%
100%
Rift Valley Resource Developments Pty Ltd 1
Malawi
100%
100%
Lindian Mining Services Limited
Malawi
100%
100%
West African Exploration Pty Ltd
Australia
100%
100%
West African Exploration Cameroon Ltd
Cameroon
100%
100%
Tangold Pty Ltd
Australia
100%
100%
Hapa Gold Limited
Tanzania
100%
100%
Batan Australia Pty Ltd
Australia
51%
51%
East Africa Bauxite Limited
Tanzania
51%
51%
Lindian Guinea SARL
Guinea
100%
100%
Woula Natural Resources SARL
Guinea
61%
61%
Bauxite Holdings Limited
Mauritius
75%
75%
Lelouma Bauxite Guinea SARL
Guinea
75%
75%
Terminal Logistics & Holdings Pte Ltd
Singapore
75%
75%
Northern Rail Pte Ltd
Singapore
100%
100%
Guinea Bauxite Pty Ltd
Australia
51%
51%
KB Bauxite Guinea SARL
Guinea
51%
51%
1 Lindian has acquired 100% of Rift Valley, payable in tranches. As at 30 June 2024 ,Lindian has paid Tranches 1, 2 and 3 totalling
US$20m and 67% of the issued share capital in Rift Valley had been legally transferred into 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.
17. Loss per Share
2024
$
2023
$
Basic loss per share (cents per share)
(0.42)
(0.83)
Diluted loss per share (cents per share)
(0.42)
(0.83)
2024
2023
Number
Number
Weighted average number of ordinary shares used in
calculating basic and diluted loss per share (*):
1,142,540,179
933,481,941
As at 30 June 2024, there are 84,126,549 Options of which 10,000,000 were in the money based on
the closing share price at 30 June 2024 of $0.105 and 200,000 Performance Rights which had vested
but had not yet been converted. 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
Page | 54
unissued shares (options and performance rights) outstanding at 30 June 2024 on the loss per
share calculation because they are antidilutive.
18. Exploration Project Expenditure Commitments
Exploration commitments contracted for at reporting date but not recognised as liabilities are as
follows:
2024
$
2023
$
Within one year
872
18,600
After one year but not longer than 5 years
3,489
32,500
4,361
51,100
Kangankunde Project (Malawi)
There are no expenditure obligations other than payment of ground rental fees for each of ML0290
and EL0514 required in order to keep the licences in good standing, which the Group has historically
met and is committed to doing so in the future.
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 2024, the Group has spent $1,978,929 (2023:
$1,847,871) on the Gaoual Bauxite Project and has earned its 51% interest.
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 2024, the Group has spent $714,107 (2023: $567,147) on the Tanzanian Bauxite Projects.
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, Lindian’s management team requested an extension of the notice period
initially 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 2021, to elect to continue to sole fund the Project as
described above to acquire the Stage 2 interest. Subsequently this end date of 31 December 2021 has
been extended through mutual agreement and as at the date of this report is open-ended.
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 to elect to dispose of its Stage 1 shareholders in existing
Page | 55
proportion to their then interests for a total consideration of $1 on the satisfaction of Lindian
obtaining all necessary regulatory and shareholder approvals.
19. Auditor’s Remuneration
The auditor of Lindian Resources Limited is HLB Mann Judd (2022: HLB Mann Judd).
2024
$
2023
$
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
45,703
42,750
45,703
42,750
20. Key Management Personnel Disclosures
The aggregate compensation made to Directors and other Key Management Personnel of the Group
is set out below:
2024
$
2023
$
Short term employee benefits
1,689,849
808,962
Share based payments
1,198,041
1,116,088
Post-employment benefits (superannuation)
26,824
47,247
Total remuneration
2,914,714
1,972,297
The Group has liabilities of $359,460 for unpaid Key Management Personnel remuneration at 30
June 2024 (2023: $43,022).
21. Related Party Disclosures
The ultimate parent entity is Lindian Resources Limited. Refer to note 16 for list of all subsidiaries
within the Group.
During the year, the Company paid to Kabunga Holdings Pty Ltd, a company associated with Asimwe
Kabunga, executive chairman fees’ totalling $276,259.
During the year, the Company paid to Earthstone Pty Ltd, a company associated with Alwyn Vorster
director fees totalling $46,620 and consulting fees totalling $99,540.
During the year, the Company paid to Contango Pty Ltd, a company associated with Trevor Matthews
executive director fees totalling $221,657.
During the year, the Company paid to Orecraft Pty Ltd, a company associated, with Jack Fazio
consulting fees in connection with project management of the Stage 1 Processing plant totalling
$413,900 and directors fees’ totalling $55,000.
During the year, the Company paid to Top Pacific Pty Ltd, a company associated with Park Wei
director fees totalling $48,479.
Page | 56
Amounts owing for services rendered by key management personnel at 30 June 2024 totalled
$323,035 (inclusive of GST), and was comprised as follows:
30 June 2024
KMP
Service Entity
$
Alwyn Vorster
Earthstone Pty Ltd
54,248
Trevor Matthews
Contango Pty Ltd
38,016
Park Wei
Top Pacific Pty Ltd
15,557
Giacomo Fazio
Orecraft Pty Ltd
215,214
Total outstanding
323,035
There were no other related party transactions with key management personnel during the year.
22. Financial Risk Management
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:
2024
$
2023
$
Financial Assets
Cash and cash equivalents
13,252,990
7,616,206
Trade and other receivables
129,823
138,464
Financial Liabilities
Trade and other payables
825,337
1,084,915
Short term debt
15,096,618
30,224,081
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.
Page | 57
Maturity analysis for financial liabilities
Financial liabilities of the Group comprise trade and other payables. At 30 June 2024, all trade and
other payables 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.
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.
2024
$
2023
$
Cash and cash equivalents
13,252,990
7,616,206
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 2024, 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 2024.
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.
23. Share Based Payments
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:
2024
$
2023
$
Operating expenses
Share based payments – key management persons
1,198,041
1,116,088
Other Expenses – investor relations 1
-
2,037,200
Other Expenses – marketing & advertising services,2
-
183,000
Other Expenses – corporate advisor services,3
-
-
1,198,041
3,336,288
Equity
Issued capital4
-
275,400
-
275,400
TOTAL
1,198,041
3,611,688
There were no options issued as part of share-based payments during the year ended 30 June 2024.
Options issued as part of share-based payments during the year ended 30 June 2023 were as follows:
Page | 58
Grant Date Expiry Date
Fair Value
at
Valuation
Date
Exercise
Price
Number at
issued
Number
exercised
Number at
30 June
2023
Number
vested /
exercisable
at 30 June
2023
29 Aug 22
29 Aug 25
$0.0926
$0.10
22,000,000
(5,000,000)
17,000,000
17,000,000
9 Dec 22
9 Dec 25
$0.0918
$0.30
3,000,000
(3,000,000)
-
-
Total
25,000,000
(8,000,000)
17,000,000
17,000,000
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
Weighted
Average
Contractual
Life
number
$
$
days
Options outstanding at 30 June 2022
5,000,0001
$0.02
$0.0145
143
Issued during the year
25,000,000
$0.12
$0.09
1,095
Exercised during the year
(13,000,000)
$0.12
$0.06
739
Options outstanding at 30 June 2023
17,000,000
$0.10
$0.0926
791
24. Cash Flow information
2024
$
2023
$
Reconciliation of operating loss after tax to the net cash flows from
operations:
Loss after tax
(4,887,055)
(7,780,981)
Non-cash items
Depreciation and impairment charges
13,207
113,721
Foreign currency (gain)/loss
(240,937)
1,420,151
Share based payments expense
1,198,040
3,336,288
Change in assets and liabilities
Trade and other receivables
(11,779)
(106,998)
Trade and other payables
(114,632)
(59,501)
Net cash outflow from operating activities
(4,043,156)
(3,077,320)
Page | 59
25. Parent Entity Information
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.
2024
$
2023
$
Current assets
13,178,253
7,519,485
Non-current assets
63,212,326
56,581,377
Total assets
76,390,579
64,100,862
Current liabilities
695,058
16,001,431
Non-Current liabilities
15,096,618
15,112,040
Total liabilities
15,791,677
31,113,472
Net assets/(liabilities)
60,598,902
32,987,391
Issued capital
103,190,747
69,179,051
Reserves
14,574,114
13,144,883
Accumulated losses
(57,165,958)
(49,336,543)
Total equity
60,598,902
32,987,391
Loss for the year
(7,914,596)
(7,566,851)
Other comprehensive income for the year
-
-
Total comprehensive loss for the year
(7,914,596)
(7,566,851)
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 18 and Note 28 for details of the parent company’s commitments and contingent
liabilities.
26. Dividends
No dividend was paid or declared by the Group in the period since the end of the financial year and
up to the date of this report. The Directors do not recommend that any amount be paid by way of
dividend for the financial year ended 30 June 2024. The balance of the franking account is Nil as at
30 June 2024 (2023: Nil).
27. Events Subsequent to Balance Date
Kangankunde Rare Earths Project Stage 1 Feasibility Study
On 1 July 2024, Lindian announced the results of a Stage 1 Feasibility Study reflecting a technically
low risk and economically robust project with the following key metrics:
•
Stage 1 post-tax Net Present Value (NPV8 real) of US$555M (A$831M);
•
an IRR of 80%;
•
average annual EBITDA of US$84M1 (A$124.5M);
•
Pre-production capital cost of US$40M (A$60M) which includes 12.5% contingency,
making it one of the lowest capital cost rare earths projects under development;
•
Average annual FOB operating cost of US$2.92/kg TREO, positioning Kangankunde in the
lowest cost quartile of the global rare earths industry; and
•
Payback period of less than 2 years.
Page | 60
28. Commitments and Contingencies
The Company has no commitments or contingencies other than those reported at Notes 11 and 18.
29. Foreign Exchange Losses
The Group incurred foreign exchange gains for the year ended 30 June 2024 of $240,937 (30 June
2023 of $1,420,151 loss) as follows:
30 June 2024
30 June 2023
Note
$
$
Foreign exchange gains/(losses) on invoices settled in
foreign currencies
(74,123)
(74,523)
Foreign exchange losses relating to the acquisition of
Kangankunde Project
11
315,060
(1,345,628)
Total
240,937
(1,420,151)
Page | 61
CONSOLIDATED ENTITY DISCLOSURE STATEMENT
Entity Name
Entity type
%
Country of
Incorporation
Ownership
Interest
Tax
Residency
Lindian Resources Limited
Body corporate
Australia
N/A
Australia
Lindian Rare Earths Limited
Body corporate
United Kingdom
100%
Australia
Rift Valley Resource Developments Pty Ltd
Body corporate
Malawi
100%
Malawi
Lindian Mining Services Limited
Body corporate
Malawi
100%
Malawi
West African Exploration Pty Ltd
Body corporate
Australia
100%
Australia
West African Exploration Cameroon Ltd
Body corporate
Cameroon
100%
Australia
Tangold Pty Ltd
Body corporate
Australia
100%
Australia
Hapa Gold Limited
Body corporate
Tanzania
100%
Australia
Batan Australia Pty Ltd
Body corporate
Australia
51%
Australia
East Africa Bauxite Limited
Body corporate
Tanzania
51%
Australia
Lindian Guinea SARL
Body corporate
Guinea
100%
Australia
Woula Natural Resources SARL
Body corporate
Guinea
61%
Australia
Bauxite Holdings Limited
Body corporate
Mauritius
75%
Australia
Lelouma Bauxite Guinea SARL
Body corporate
Guinea
75%
Australia
Terminal Logistics & Holdings Pte Ltd
Body corporate
Singapore
75%
Australia
Northern Rail Pte Ltd
Body corporate
Singapore
100%
Australia
Lindian Rare Earths Pte Limited
Body corporate
Singapore
100%
Australia
Guinea Bauxite Pty Ltd
Body corporate
Australia
51%
Australia
KB Bauxite Guinea SARL
Body corporate
Guinea
51%
Australia
Basis of preparation
This Consolidated Entity Disclosure Statement (CEDS) has been prepared in accordance with the
Corporations Act 2001. It includes certain information for each entity that was part of the Group at
the end of the financial year 30 June 2024.
Determination of tax residency
Section 295 (3A) of the Corporations Act 2001 defines tax residency as having the meaning in the
Income Tax Assessment Act 1997. The determination of tax residency involves judgement as there
are currently several different interpretations that could be adopted, and which could give rise to a
different conclusion on residency. It should be noted that the definitions of Australian resident and
foreign resident in the Income Tax Assessment Act 1997 are mutually exclusive. This means that if
an entity is an Australian resident it cannot be a foreign resident for the purposes of disclosure in
the CEDS.
In determining tax residency, the Group has applied the following interpretations:
Australian tax residency
The Group has applied current legislation and judicial precedent, including having regard to the Tax
Commissioner’s public guidance in Tax Ruling TR 2018/5.
Foreign tax residency
Where necessary, the Group has used independent tax advisers in foreign jurisdictions to assist in
determining tax residency and ensure compliance with applicable foreign tax legislation.
Page | 62
DIRECTORS DECLARATION
In accordance with a resolution of the Directors of Lindian Resources Limited, the Directors declare
that:
1.
In the opinion of the Directors:
(a)
the financial statements and notes of the Group set out on pages 33 to 61 and the
Directors’ Report are in accordance with the Corporations Act 2001, including:
(i)
giving a true and fair view of the financial position of the Group as at 30 June
2024 and of its performance, for the year ended on that date; and
(ii)
complying with Accounting Standards (including the Australian Accounting
Interpretations) and the Corporations Regulations 2001, and other
mandatory professional reporting requirements.
(b)
there are reasonable grounds to believe that the Company will be able to pay its
debts as and when they become due and payable; and
(c)
the information disclosed in the consolidated entity disclosure statement is true
and correct.
2.
the financial statements and notes also comply with International Financial Reporting
Standards as disclosed in note 2(c).
3.
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 2024.
On behalf of the board
Asimwe Kabunga | Chairman
30 September 2024
Page | 63
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 2024, 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
30 September 2024
N G Neill
Partner
Page | 64
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 2024, the
consolidated statement of profit or loss and other comprehensive income, the consolidated statement of
changes in equity and the consolidated statement of cash flows for the year then ended, notes to the financial
statements, including material accounting policy information, the consolidated entity disclosure statement
and the directors’ declaration.
In our opinion, the accompanying financial report of the Group is in accordance with the Corporations Act
2001, including:
(a) giving a true and fair view of the Group’s financial position as at 30 June 2024 and of its financial
performance for the year 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.
Page | 65
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 audit focussed on the Group’s assessment of
the carrying value of the capitalised exploration and
evaluation expenditure. We considered this to be a
key audit matter because this is one of the
significant assets of the Group 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 standard.
In addition, we considered is necessary to assess
whether facts and circumstances existed to suggest
that the carrying amount of an exploration and
evaluation asset may exceed its recoverable
amount.
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;
•
We reviewed key transactions during
the year to ensure they were correctly
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.
Other Information
The directors are responsible for the other information. The other information comprises the information
included in the Group’s annual report for the year ended 30 June 2024, 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.
Page | 66
Responsibilities of the Directors for the Financial Report
The directors of the Company are responsible for the preparation of:
(a) the financial report (other than the consolidated entity disclosure statement) that gives a true and fair
view in accordance with Australian Accounting Standards and the Corporations Act 2001; and
(b) the consolidated entity disclosure statement that is true and correct in accordance with the Corporations
Act 2001, and
for such internal control as the directors determine is necessary to enable the preparation of:
(a) the financial report (other than the consolidated entity disclosure statement) that gives a true and fair
view and is free from material misstatement, whether due to fraud or error; and
(b) the consolidated entity disclosure statement that is true and correct 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.
Page | 67
−
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
2024.
In our opinion, the Remuneration Report of Lindian Resources Limited for the year ended 30 June 2024
complies with Section 300A of the Corporations Act 2001.
Responsibilities
The directors of the Company are responsible for the preparation and presentation of the Remuneration
Report in accordance with Section 300A of the Corporations Act 2001. Our responsibility is to express an
opinion on the Remuneration Report, based on our audit conducted in accordance with Australian Auditing
Standards.
HLB Mann Judd
N G Neill
Chartered Accountants
Partner
Perth, Western Australia
30 September 2024
Page | 68
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 13 September 2024.
Number of Shareholders and Unquoted Security Holders Shares
As at 13 September 2024, there were 2,352 shareholders holding a total of 1,152,922,236 fully paid
ordinary shares.
The number of holders holding less than a marketable parcel of fully paid ordinary shares as at 13
September 2024 was 505.
Unquoted Securities
The total number of unquoted securities on issue as at 13 September 2024 was 107,426,549 as
follows:
Unquoted Security
Number on Issue
Options exercisable at $0.12 on or before 6 June 2025
10,000,000
Options exercisable at $0.25 on or before 8 March 2025
7,500,000
Options exercisable at $0.10 on or before 29 August 2025
17,000,000
Options exercisable at $0.30 on or before 9 December 2025
32,318,859
Options exercisable at $0.35 on or before 3 April 2026
17,307,690
Performance Rights – tranche 1
200,000
Performance Rights – tranche 2
3,600,000
Performance Rights – tranche 3
6,000,000
Performance Rights – tranche 4
6,000,000
Performance Rights – Vorster (Classes 2 to 7 inclusive)
7,000,000
Performance Rights – Stephens (Class 8, Class 9)
500,000
Total
107,426,549
Distribution schedule and number of holders of equity securities as at 13 September 2024
1 – 1,000
1,001 –
5,000
5,001 –
10,000
10,001 –
100,000
100,001 –
and over
Total
Fully Paid Ordinary Shares
121
133
105
492
291
1,142
Options exercisable at $0.12 on or
before 6 June 2025
-
-
-
-
1
1
Options exercisable at $0.25 on
or before 8 March 2025
-
-
-
-
1
1
Options exercisable at $0.10 on or
before 29 August 2025
-
-
-
-
3
3
Options exercisable at $0.30 on
or before 9 December 2025
-
-
-
-
90
90
Options exercisable at $0.35 on
or before 3 April 2026
-
-
-
-
3
3
Performance Rights – tranche 1
-
-
-
-
1
1
Performance Rights – tranche 2
-
-
-
-
3
3
Performance Rights – tranche 3
-
-
-
-
3
3
Performance Rights – tranche 4
-
-
-
-
3
3
Performance Rights – tranche 4
-
-
-
-
3
3
Performance Rights – Vorster
-
-
-
-
1
1
Performance Rights – Stephens
-
-
-
-
1
1
Page | 69
Top Twenty Shareholders
Shareholder name
No. of ordinary
shares held
%
Kabunga Holdings Pty Ltd
125,526,578
10.90%
Ven Capital Pty Ltd
101,089,845
8.78%
Mr Rohan Patnaik
70,425,000
6.11%
Bonacare Pty Ltd
68,552,181
5.95%
BNP Paribas Nominees Pty Ltd
54,833,641
4.76%
HSBC Custody Nominees (Australia) Limited-GSCO ECA
46,558,782
4.04%
Mr Victor Lorusso
46,000,000
3.99%
Topwei Two Pty Ltd
45,734,898
3.97%
Citicorp Nominees Pty Limited
44,193,645
3.84%
HSBC Custody Nominees (Australia) Limited
22,747,748
1.97%
Mr Yulong Gu
17,588,128
1.53%
Ms Leticia Kabunga
17,298,660
1.50%
Greywood Holdings Pty Limited
14,100,000
1.22%
Claymore Ventures Limited
13,887,304
1.21%
Ms Katie-Lee Lorusso
13,298,077
1.15%
Cove Street Pty Ltd
13,000,000
1.13%
Ms Xiaona Zhao
10,198,299
0.89%
BNP Paribas Nominees Pty Ltd
9,877,250
0.86%
Mr Waleed KHS A A Esbaitah
8,500,000
0.74%
Net Wealth Investments Ltd
7,962,712
0.69%
Total
751,372,748
65.23%
Holder Details of Unquoted Securities
Unquoted security holders holding more than 20% of a given class of unquoted securities as at 13
September 2024 including performance rights issued under an employee incentive scheme were:
Security
Name
Number of
Securities
Options exercisable at $0.10 on or before 29-Aug-2025
Mr Zuliang Park Wei & Ms Bao
Hong Zhang
7,000,000
Options exercisable at $0.10 on or before 29-Aug-2025
Mr Yueqi Ma
6,500,000
Options exercisable at $0.10 on or before 29-Aug-2025
Mr Xiaodong Ma
3,500,000
Options exercisable at $0.12 on or before 6-Jun-2025
Mr Zuliang Park Wei & Ms Bao
Hong Zhang
10,000,000
Options exercisable at $0.25 on or before 8-Mar-2025
Bonacare Pty Ltd
7,500,000
Options exercisable at $0.35 on or before 3-Apr-2026
Mr Tam Jin Rong
14,423,076
Performance Rights – class A
Yves Occello
2,000,000
Performance Rights – class B
Kabunga Holdings Pty Ltd
3,000,000
Performance Rights – class C
Kabunga Holdings Pty Ltd
5,000,000
Performance Rights – class D
Kabunga Holdings Pty Ltd
5,000,000
Performance Rights – class 2,
Alwyn Vorster
1,000,000
Performance Rights – class 3
Alwyn Vorster
1,000,000
Performance Rights – class 4
Alwyn Vorster
1,000,000
Performance Rights – class 5
Alwyn Vorster
1,000,000
Performance Rights – class 6
Alwyn Vorster
1,500,000
Performance Rights – class 7
Alwyn Vorster
1,500,000
Performance Rights – class 8
Alistair Stephens
250,000
Performance Rights – class 9
Alistair Stephens
250,000
Page | 70
Restricted Securities as at 13 September 2024
The Company had 1,000,000 fully paid ordinary shares under escrow as at 13 September 2024.
The shares are held by Mr Alwyn Vorster and were issued arising from the conversion of performance
rights received by Mr Vorster upon his appointment as Chief Executive Officer. The shares are
escrowed for a period of 6 months from date of appointment.
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 Last 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
9.97%
5 September 2023
3
Ven Capital Pty Ltd
101,089,845
8.78%
21 July 2023
4
Mr Rohan Patnaik
78,250,000
6.79%
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.