i
CHAIRMAN’S LETTER ....................................................................................................................................................... 5
OPERATING AND FINANCIAL REVIEW ............................................................................................................................ 7
KEY ACHIEVEMENTS OF THE YEAR ............................................................................................................................... 8
KATHLEEN VALLEY LITHIUM PROJECT ........................................................................................................................ 10
MOORA GOLD-PGE-NICKEL-COPPER PROJECT ................................................................................................................. 17
BULDANIA LITHIUM PROJECT ....................................................................................................................................... 20
TOOLEBUC PROJECT ..................................................................................................................................................... 23
FINANCIAL REVIEW ........................................................................................................................................................ 26
ORE RESERVE AND MINERAL RESOURCE STATEMENT ........................................................................................... 27
COMPETENT PERSON STATEMENT AND REFERENCES ........................................................................................... 29
TENEMENT SCHEDULE .................................................................................................................................................. 30
DIRECTORS’ REPORT .................................................................................................................................................... 32
AUDITOR’S INDEPENDENCE DECLARATION ............................................................................................................... 44
FINANCIAL REPORT ........................................................................................................................................................ 45
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME ............................. 46
CONSOLIDATED STATEMENT OF FINANCIAL POSITION ............................................................................................ 47
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY ............................................................................................ 48
CONSOLIDATED STATEMENT OF CASH FLOWS ......................................................................................................... 49
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS ...................................................................................... 51
DIRECTORS’ DECLARATION .......................................................................................................................................... 69
INDEPENDENT AUDITOR’S REPORT ............................................................................................................................ 70
ASX ADDITIONAL INFORMATION ................................................................................................................................... 73
i i
DIRECTORS
TIMOTHY RUPERT BARR GOYDER ............................................................................................................... CHAIRMAN
DAVID ROSS RICHARDS ............................................................................................................ MANAGING DIRECTOR
CRAIG RUSSELL WILLIAMS............................................................................................... NON-EXECUTIVE DIRECTOR
ANTHONY JAMES CIPRIANO............................................................................................. NON-EXECUTIVE DIRECTOR
STEVEN JOHN MICHEIL CHADWICK ................................................................................ NON-EXECUTIVE DIRECTOR
COMPANY SECRETARY
CRAIG HASSON
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i i i
As a result of Kathleen Valley’s increased
Mineral Resource Estimate, declared in May
2020, Liontown now has the world’s 4th
largest hard rock (spodumene) lithium
resource base, by ownership.
4 | C H A I R M A N ’ S L E T T E R
Tim Goyder - Chairman
Dear Fellow Shareholders,
FY2020 was a positive year for our Company despite the
COVID-19 pandemic which had little effect on our operations.
Over the last 12 months we hit a number
of key milestones and made excellent
progress towards achieving our strategic
objective of becoming a significant lithium
miner.
Our 100% owned Kathleen Valley Lithium-Tantalum Project has cemented itself as a Tier-1, hard rock, lithium deposit thanks
to a near-doubling of its Mineral Resource Estimate (MRE) in May 2020 to 156Mt @ 1.4% Li2O and 130ppm Ta2O5. The
updated MRE represents the third successive increase since the maiden MRE was published in September 2018 and clearly
establishes Kathleen Valley as a world-class lithium deposit.
A Pre-Feasibility Study (PFS) published in December 2019 gave us some early insights into the economic potential of the
Project and, given the substantial increase in the size of the deposit and the delineation of substantial high-grade (>1.5%
Li2O) mineralisation at depth, the Company determined that a new PFS was required prior to committing to a Definitive
Feasibility Study (DFS).
The new PFS which will be released in early Q4 2020 will investigate (among other considerations):
•
•
•
earlier mining of higher-grade ore via underground and optimised open pit mining;
a revised Whole of Ore Float process flowsheet; and
a tantalum recovery circuit
The upgraded PFS (+/-25% accuracy) will provide an improved basis for a DFS (+/-15% accuracy), which is now planned
to be completed by Q4, 2021.
With the proposed development of Kathleen Valley to a standalone mining and processing operation, Liontown is poised to
be one of the first of the next generation of hard rock lithium producers aligned with the forecast resurgence of the lithium-
ion battery sector in the coming years.
During the year, the Company also completed a maiden MRE for its 100%-owned Buldania Lithium Project, located near
Norseman in Western Australia’s south-eastern Goldfields. The Indicated and Inferred Mineral Resource announced in
November 2019 relates to the Anna deposit and comprises ~15Mt @ 1.0% Li2O and 44ppm Ta2O5.
There is significant potential for further lithium discoveries within Liontown’s large land position at Buldania, which is largely
unexplored for lithium outside of the Anna pegmatite.
Together, the total combined MREs at Kathleen Valley and Buldania represent the world’s 4th largest hard rock
(spodumene) lithium resource base by ownership, which is an outstanding achievement and a tangible measure of the
potential value of the Projects and your Company.
The Company was also pleased to commence field work in May 2020 at its 100%-owned Moora Project located just 150km
northeast of Perth, Western Australia. This emerging project is located in the same geological terrain as the Julimar discovery
where Chalice Gold Mines (ASX:CHN) announced a high-grade Ni-Cu-PGE (Platinum Group Element) discovery in early 2020.
Liontown’s initial field programs at Moora returned strongly anomalous gold, PGEs, nickel and copper from wide-spaced
geochemical soil sampling programs and, subsequent to the end of the year, the Company completed an Airborne
Electromagnetic (AEM) survey over the entire Project area. The AEM survey was designed to detect mineralised sulphide
zones beneath cover, and data processing was in progress at the time of writing.
Liontown is in a solid financial position. To achieve this, we have exercised prudence in the current economic climate by
streamlining spending to focus almost exclusively on the Kathleen Valley and Moora Projects.
5 | C H A I R M A N ’ S L E T T E R
Additionally, as a pre-emptive measure and to conserve cash in the initial months of the COVID-19 outbreak, Directors and
senior management agreed to accept equity compensation in lieu of fees and as a percentage of salaries respectively, for
a current maximum period of four quarters.
Our shareholders and the capital they provide, have nonetheless enabled us to maintain strong development momentum in
2020 to bring the Kathleen Valley Lithium Project closer to realisation as a future world-class lithium mine.
Consensus forecasts indicate that the lithium market will reach a demand/supply balance in 2022 with a potential shortage
in 2023.
Brokers and market commentators are broadly positive on the long-term outlook for lithium – particularly given the ongoing
global shift towards electric vehicles from large auto makers. This outlook is underpinned by supporting government policies
in China and Europe which both have national and local subsidy schemes in place. China and Europe also recently
strengthened and extended their New Energy Vehicle mandate and CO2 emissions standards, respectively.
We will continue to be guided by our purpose and values during these unprecedented times by developing our projects and
supporting the communities in which we operate in order to guarantee long term value for our shareholders.
Finally, I would like to thank our Managing Director David Richards, our COO Adam Smits who is leading the new PFS, our
Exploration Manager Jamie Day, my fellow directors and the Company’s employees and contractors for their hard work over
the past year.
I would also like to thank our shareholders for their continued and valued support.
As Chairman and a major shareholder, I am confident that the long-term future of the Company should provide shareholders
with significant capital gains when the EV market enters into the much-anticipated growth phase.
Yours faithfully
Tim Goyder
Chairman
FY2020 KEY HIGHLIGHTS
Kathleen Valley Lithium & Tantalum Project: An updated MRE of 156Mt @ 1.4% Li2O
and 130ppm Ta2O5 was announced in May 2020. This represents a more than 600%
increase since the maiden MRE was published in September 2018.
New PFS will be completed in early Q4 2020 following the updated MRE, detailed
process engineering, metallurgical testing, geotechnical and hydrological studies.
Moora Gold-PGE-Nickel-Copper Project: Shallow auger sampling defined
extensive, strong Au-PGE-Ni-Cu anomalism including individual gold values up to
925ppb (0.92g/t Au).
Buldania Lithium Project: Maiden MRE of 14.9Mt @ 1.0% Li2O and 44ppm Ta2O5
defined for Anna deposit.
As a result of Kathleen Valley’s increased MRE, Liontown now has the world’s 4th
largest hard rock (spodumene) lithium resource base by ownership.
6 | C H A I R M A N ’ S L E T T E R
Looking ahead…
Liontown (Company) is rapidly progressing the Kathleen Valley Lithium deposit towards a new mining and processing
operation in Western Australia. The definition of an updated MRE during 2020, comprising 156 million tonnes at 1.4% Li2O
and 130ppm Ta2O5 (~ 5.3Mt of lithium carbonate equivalent), has confirmed the resource as one of the most significant,
high quality, hard rock lithium deposits in Australia.
The rising demand in the global market for lithium ion batteries continues with consensus forecasts predicting exponential
growth in battery demand driven by high environmental targets and incentivized transition to electric vehicles. Liontown is
well-positioned to become a significant source of lithium supply just in time to meet this demand which is expected to escalate
in the next few years.
Importantly, the Kathleen Valley deposit (Kathleen Valley) is one of the few large, uncommitted (i.e. no offtake agreements
and 100% ownership), hard rock lithium deposits in a tier one mining jurisdiction, providing flexibility in terms of future
financing or attracting strategic partners.
Ongoing studies at Kathleen Valley will carefully consider the experience from previously commissioned, hard rock lithium
mine developments with a focus on metallurgical test work to ensure a high quality spodumene and tantalum concentrate
will be produced at optimal grades and recoveries.
The Company’s primary objectives in advancing Kathleen Valley are:
•
•
Completion of a new PFS in early Q4 2020 and immediate transition to a Definitive Feasibility Study (DFS); and
Planning and execution of the transition from an exploration to a mineral development company by employing key
personnel with the right expertise and experience.
Consistent with its corporate strategy to focus on battery and precious metals, the Company will also continue to advance
the Moora Gold-PGE-Nickel-Copper Project in south-west Western Australia where early work has defined strong
geochemical anomalism coincident with geophysical features interpreted to be mafic/ultramafic bodies obscured by shallow
cover.
The Moora Project is largely unexplored with little historic work conducted and initial drill testing by Liontown is scheduled
for late 2020/early 2021 following completion of further target definition.
In addition, the Company will seek to unlock the significant potential at its second lithium project at Buldania where a maiden
MRE of 15Mt @ 1.0% Li2O was defined during the year.
While Liontown is cognisant of the current uncertainties caused by the COVID-19 pandemic and its impact across global
financial markets, the Company remains focused on delivering Australia’s next major lithium development.
7 | O P E R A T I N G A N D F I N A N C I A L R E V I E W
KATHLEEN VALLEY LITHIUM PROJECT
An initial PFS confirmed the technical and financial viability of a standalone mining and
processing operation based on the July 2019 MRE of 74.9Mt @ 1.3% Li2O and 140ppm Ta2O5.
Further drilling expanded the MRE to 156Mt @ 1.4% Li2O and 130ppm Ta2O5 which
represents an increase of 108% in tonnes and 119% in contained lithium compared with the July
2019 Mineral Resource and a 636% increase in tonnes and contained lithium from the maiden
Mineral Resource of 21.2Mt @ 1.4% Li2O and 170ppm Ta2O5 released in September 2018.
The updated MRE contains 2.1Mt of Li2O or 5.3Mt of lithium carbonate equivalent (LCE) and
44Mlbs of Ta2O5.
80% of the latest MRE is classified as Measured or Indicated, which will be available for
conversion to Proven or Probable Reserves.
The significant increase in the MRE combined with results from the initial PFS have highlighted a
number of opportunities to improve the financial metrics of the Project which will be investigated
as part of a new PFS, scheduled for completion in Q4 2020.
The new PFS will include the following inputs:
Mining of higher grade material earlier in the schedule of a future mining operation;
Using a simpler Whole of Ore Float (WOF) process to produce a spodumene concentrate
grading 6% Li2O or higher; and
A flowsheet to recover tantalum as a by-product.
It is envisaged that a DFS will commence immediately following completion of the updated PFS
in Q4 2020.
MOORA GOLD-PGE*-NICKEL-COPPER PROJECT
Field work commenced on the 100%-owned, 467km2 Moora Project which had been secured by
exploration licenses applied for in 2018 and 2019.
The Moora Project is underlain by the same geological sequence as the recent, high-grade
Julimar nickel-PGE-copper-gold discovery located ~95km to the south.
Geochemistry has defined multiple +100ppb gold anomalies with values up to 925ppb (0.92g/t
Au).
The high gold values are coincident with anomalous PGEs (up to 75ppb Pd+Pt), nickel (up to
492ppm) and copper (up to 884ppm).
Initial drill testing is scheduled for late 2020/early 2021.
*PGE – palladium and platinum
8 | K E Y A C H I E V E M E N T S O F T H E Y E A R
BULDANIA LITHIUM PROJECT
Maiden MRE of 14.9Mt @ 1.0% Li2O and 44ppm Ta2O5 defined for Anna deposit.
The mineralised trend at Anna remains open along strike and at depth and, together with other
drill ready targets within the Project, there is good potential to increase the resource base.
CORPORATE
$18 million capital raising via a placement of 150,000,000 fully paid ordinary shares at an issue
price of $0.12 per share.
Cash balance boosted by a final payment of $1.5 million cash relating to the 2017 sale of the
Bynoe Lithium Project to Core Lithium.
Key staff appointed (including highly-experienced Chief Operating Officer – Adam Smits) to
facilitate the development of Kathleen Valley including the completion of feasibility and other
advanced mining-related studies.
LIONTOWN’S ENVIRONMENTAL, SOCIAL & GOVERNANCE
(ESG) STRATEGY
Companies and investors are increasingly focused on the impact of sustainability on their
operations and investments respectively. An increased understanding of how sustainability-related
factors can affect economic growth, asset performance and financial markets as a whole underlies
this increased focus.
Liontown believes that the way a company manages the environmental and social aspects of its
business offers an indication of how well the company is run. A strong commitment to corporate
governance is a sign of quality leadership and management required to ensure a company’s long-
term financial sustainability.
Liontown will proactively seek to integrate consideration of environmental, social and
governance factors into our Company practices and decisions and will formalise its ESG
commitments in conjunction with the Kathleen Valley DFS which is due for completion in Q4
2021.
We are wholeheartedly committed to the development of our ESG principles which we believe
reflects our responsibility to our employees, shareholders, the communities in which we operate
and other stakeholders.
9 | K E Y A C H I E V E M E N T S OF T H E Y E A R
Western Australia (100%)
The Kathleen Valley Project, which is approximately 670km north-east of Perth,
Western Australia (Figure 1), incorporates a Tier-1, hard rock lithium deposit located
on granted Mining Leases in an established mining jurisdiction close to existing
transport and energy infrastructure. Liontown has delineated Australia’s 5th largest
lithium resource, contributing to Liontown having the world’s 4th largest hard rock
(spodumene) lithium resource base by ownership. An initial feasibility study has
confirmed the potential for an economically viable standalone mining operation.
Following release of a second MRE in July 2019, Liontown completed a PFS which confirmed the potential for an
economically viable, standalone lithium mining and processing operation at Kathleen Valley. The PFS also identified
opportunities to enhance the Project’s financial returns by expanding the resource and investigating the potential to recover
tantalum as a by-product.
Figure 1: Kathleen Valley Project – Location plan and regional geology
Based on the PFS, the Liontown Board of Directors approved additional drilling designed to expand the MRE and allow
further metallurgical test work to refine optimal processing parameters for a future mining operation. Results of these
programs and other ongoing related studies will be incorporated into a new PFS due for completion in early Q4 2020.
1 0 | K A T H L E E N V A L L E Y L I T H I U M P R O J E C T
PRE-FEASIBILTY STUDY (PFS)
MAIDEN ORE RESERVE
The PFS included a maiden Ore Reserve of 50.4Mt @ 1.2% Li2O which was based on the July 2019 MRE of 74.9Mt @
1.3% Li2O and 140ppm Ta2O5.
Orelogy Mine Consulting Pty Ltd (Orelogy) was responsible for the mining component of the PFS and, as such, developed
a maiden Ore Reserve estimate for Kathleen Valley in accordance with the guidelines of the JORC Code 2012.
The Ore Reserve prepared by Orelogy is summarised in Table 1.
Table 1: Kathleen Valley Project – Ore Reserve Estimate (November 2019)
Category
Proved
Probable
TOTAL
Notes:
Tonnage (Mt)
Li2O (%)
17.1
33.3
50.4
1.2
1.2
1.2
Li2O (T)
204,000
399,600
603,600
• Tonnages and grades are diluted and reported above a Li2O cut-off grade of 0.5%
• Tonnages and grades have been rounded.
Mineral Resources were converted to Ore Reserves in line with the material classifications which reflect the level of
confidence within the resource estimate. The Ore Reserve reflects that portion of the Mineral Resource which can be
economically extracted by open pit mining methods.
FINANCIAL OUTCOMES
Based on a proposed 2Mtpa standalone mining and processing operation, the PFS demonstrated the potential for strong
financial metrics (Table 2/Figure 2).
Table 2: Kathleen Valley Project – Base Case Key Metrics
Scoping Study Outcome
2Mtpa Base Case (Lithium only)
Post-tax NPV8% (real, post-tax)
Base Case of A$507M
Internal Rate of Return (IRR)
25% (Base Case IRR)
Payback period (Lithium)
4 years post-production
Life of mine (LOM)
26 Years (including ramp-up)
Pre-production capital cost
A$240.5M including A$31.1M in contingency
Average LOM cash operating costs1
US$406/dmt (A$564/tonne) of spodumene concentrate.
Annual steady state production
295,000 tonnes of spodumene concentrate
1 Cash operating costs include all mining, processing, transport, state and private royalties, freight to port, port costs and site administration
and overhead costs
1 1 | K A T H L E E N V A L L E Y L I T H I U M P R O J E C T
The production targets are based solely on the reported Ore Reserves (33.9% Proved, 66.1% Probable) which have been
prepared by a Competent Person in accordance with the requirements of the 2012 JORC Code.
Figure 2: Kathleen Valley Project – NPV Sensitivity Analysis
The base case for the PFS assumes recovery of lithium only, as the test work program required to confirm the recovery and
grade obtainable from the inclusion of a tantalum circuit was not completed until later in the financial year.
As a result, the PFS does not incorporate the potential tantalum circuit in the project capital, operating costs or revenue (as
credits to operating costs); however, this will be included in the new PFS.
PARAMETERS AND ASSUMPTIONS
The PFS was completed to an overall +/-25% accuracy using the key parameters and assumptions set out in Table 3.
Table 3: Key Parameters and Assumptions
Parameter
General and Economic
Discount rate (real, post-tax)
Spodumene concentrate price
Exchange rate – AUD/USD
Mining and Production
Average Life-of-Mine strip ratio
Processing rate
Life-of-Mine Production Target
Average Li2O grade (diluted)
Li2O recoveries
Spodumene concentrate grade
Moisture content of concentrate
1 2 | K A T H L E E N V A L L E Y L I T H I U M P R O J E C T
8%
US$690 per tonne FOB
0.72
7.7:1
2Mtpa
50.4Mt ore
1.18%
76%
6.1%
13%
Parameter
Cost Assumptions
LOM average open pit mining costs ($/t ore mined)
LOM average processing cost ($/t ore milled)
Logistics and transport ($/t concentrate)
General and admin ($/t ore milled)
Western Australia State royalty
Other royalties
Corporate tax rate
Estimated opening tax losses available
METALLURGICAL FACTORS
A$35.12
A$18.20
A$77.26
A$4.71
5%
3% gross sales and $0.5/t ore mined
30%
A$30M
A total of 81 composited drill core samples were collected from across the deposit for the PFS metallurgical test work
program. These samples included a range of grades and depths.
The metallurgical test work process consisted of three-stage comminution including high-pressure grinding rolls (HPGR),
Dense Medium Separation (DMS) followed by flotation. This is a similar flowsheet to that used in several hard rock lithium
mines currently operating in Western Australia.
The feed composite used in the PFS test work consisted of diamond drill core and was compiled based on the mine plan for
the study. The feed composite was deliberately diluted with 10% iron-rich gabbro which hosts the mineralised pegmatites.
The PFS test work did not include any iron removal ahead of DMS separation and only low intensity magnetic separation
for iron removal ahead of flotation. A combined spodumene concentrate with a grade of 6.1% Li2O containing 1.42% Fe2O3
was produced from the PFS composite sample.
The results of the PFS test work were preliminary and further metallurgical work designed to optimise recovery and minimise
any deleterious elements, including iron, in the lithium concentrate were undertaken later in the year and are ongoing (see
pages 15-16).
2020 RESOURCE EXPANSION DRILLING AND UPGRADE
Liontown re-commenced resource definition drilling at Kathleen Valley in August 2019 with 52 new RC holes drilled, 11
previous RC holes extended, and 48 new diamond core holes completed for a total of 39,102m.
The total drilling by Liontown at Kathleen Valley since work commenced in 2017 comprises 445 holes for 86,737m, including
355 RC holes for 63,161m and 90 diamond core holes for 23,576m. This total includes 39 RC holes which were extended
following the receipt of results along strike that indicated the potential for deeper mineralisation.
The updated Measured, Indicated and Inferred Mineral Resource, which was prepared by independent specialist resource and
mining consulting group Optiro Pty Ltd (Optiro), comprises 156Mt at an average grade of 1.4% Li2O and 130ppm Ta2O5.
Details of the updated MRE are provided in Table 4 and Table 5.
Table 4: Kathleen Valley Mineral Resource Estimate as at May 2020
Resource category
Million tonnes
Li2O %
Ta2O5 ppm
Measured
Indicated
Inferred
20
105
32
1.3
1.4
1.3
140
130
110
Total
Notes:
• Reported above a Li2O cut-off grade of 0.55%.
• Tonnages and grades have been rounded to reflect the relative precision of the estimate. Inconsistencies in the totals are due to
130
156
1.4
rounding.
1 3 | K A T H L E E N V A L L E Y L I T H I U M P R O J E C T
Table 5: Mineral Resource Estimate reported by Li2O % cut-off grades
Cut-off Li2O %
Million tonnes
Li2O %
Ta2O5 ppm
0.4
0.55
0.6
0.8
1.0
1.2
1.4
158
156
155
148
130
100
64
1.34
1.35
1.35
1.39
1.45
1.56
1.70
128
128
128
129
131
132
131
The MRE is reported and classified in accordance with the guidelines of the 2012 Australasian Code for Reporting of Exploration Results,
Mineral Resources and Ore Reserves (the JORC Code; 2012).
The updated MRE represents an increase of 108% in tonnes and 119% in contained lithium compared with the MRE
announced in July 2019, which formed the basis of a PFS described above.
The updated MRE comprises 2.1Mt of contained lithium oxide and 44Mlbs of contained Ta2O5. Using the benchmark Lithium
Carbonate Equivalent (LCE) measure, the Resource contains 5.3Mt of LCE, underlining its position as one of the few
undeveloped, significant lithium projects of scale being progressed towards development in Australia.
Drilling at Kathleen Valley has defined continuous mineralisation over a strike length of 1.7km and to a vertical depth of
600m with system open to the north-west and down-dip (Figure 3).
Figure 3: Kathleen Valley – Block model of May 2020 MRE showing conceptual open pits based on July 2019 MRE
and completed PFS.
1 4 | K A T H L E E N V A L L E Y L I T H I U M P R O J E C T
PFS UPDATE
In light of external challenges associated with the COVID-19 pandemic together with potential improvements and
enhancements to the Project, Liontown decided to postpone the DFS and instead produce a new PFS that is aligned to the
Project’s updated MRE.
The new PFS (+/-25% accuracy) will provide a solid and much improved basis for a DFS (+/-15% accuracy), which is now
planned to commence immediately following on from the completion of the new PFS.
The new PFS, scheduled for completion in early Q4 2020, will include inputs not considered as part of the initial PFS reported
above.
The updated inputs are based on a review of mining options and metallurgical test work completed by independent
consultants in early 2020 and included:
•
•
•
A mine planning study to determine whether deeper, higher grade mineralisation could be accessed by underground
mining;
An examination of a WOF flowsheet compared with the conventional DMS/Flotation process currently used in the
industry; and
Developing a flowsheet to recover tantalum (Ta2O5) concentrate.
The rationale for the reviews included:
•
•
Drilling during the year intersected significant widths of high-grade mineralisation (>1.5% Li2O) beneath the conceptual
open pits derived from the initial PFS (Figure 3);
Underground mining of higher grades could result in lower dilution, better plant recoveries and lower unit costs;
• WOF could reduce potential operational challenges experienced by the conventional DMS processing route, while
maximising the opportunity to recover tantalum; and
•
Recovery of a tantalum by-product has the potential to be value-accretive to the whole Project
MINE PLANNING REVIEW
Orelogy was engaged to assess the potential for a combined underground and open pit operation at Kathleen Valley.
The results of this review were positive and indicate that it is feasible to access higher grade material via underground mining
early in the schedule of a future mining operation. A combined underground and open pit scenario is being incorporated into
the new PFS, which will be based on the current MRE of 156Mt @ 1.4% Li2O and 130ppm Ta2O5.
METALLURGICAL TEST WORK UPDATE
Following the metallurgical program completed for the PFS, which was based on a combined DMS/Flotation flowsheet, an
R&D test work program was carried out at ALS Minerals and Geochemistry (Perth) with process input from Lycopodium
Minerals Limited (Lycopodium). The focus of this work was:
•
•
•
To develop and test a WOF flowsheet;
To establish grade-recovery curves for both DMS and WOF flowsheets at a range of composite grades to enable direct
comparisons between each; and
The testing and development of preliminary flowsheets to support the extraction of tantalum.
The WOF flowsheet was investigated as it is believed to offer:
•
•
•
A simpler, more robust circuit with greater operational certainty, especially in relation to upscaling laboratory-based
recoveries to a full-scale, commercial, operating mine plant;
The opportunity to process the entire plant feed for tantalum recovery compared with ~50% in a combined
DMS/Flotation scenario; and
The potential to extract deleterious elements (such as iron) prior to Li2O concentration.
1 5 | K A T H L E E N V A L L E Y L I T H I U M P R O J E C T
A simplified representation of the proposed WOF flowsheet is shown below (Figure 4).
Figure 4: Proposed Whole Ore Flotation flowsheet with Tantalum circuit
Outcomes from this metallurgical test work included:
•
Higher grade material for both processing options has a higher recovery, which supports the strategy of targeting high
grade zones using underground mining and optimised open-pit shells;
• WOF has the potential to produce a higher grade spodumene concentrate and improved performance with a greater
degree of control;
•
Using staged recoveries, the overall Ta2O5 reporting to concentrate has been estimated as 56% to a grade of 15.3%
based on test work. A mineralogical review indicates the potential to produce a 25-30% Ta2O5 concentrate at an offsite
upgrade facility; and
• Magnetic and gravity separation used to recover tantalum also reduces iron levels in the potential flotation feed by up
to 55%. The iron is largely introduced due to contamination from the host gabbro and the milling and grinding circuits.
Both the WOF and Ta2O5 flowsheets have considerable scope for further optimisation and are being investigated as part of
ongoing test work programs.
Based on the positive outcomes from testwork over the past year the new PFS will incorporate a WOF flowsheet per
Figure 4.
1 6 | K A T H L E E N V A L L E Y L I T H I U M P R O J E C T
Western Australia (100%)
The Moora Project, which is located in south-west Western Australia approximately
150km north-east of Perth (Figure 5), comprises wholly-owned tenure applied for in
2018 and 2019 as part of generative studies to acquire areas prospective for precious
and battery-related metals. Field work commenced in March 2020 and geochemical
surveys have defined strong gold – PGE – nickel - copper anomalism coincident with
geophysical features interpreted to be indicative of mafic-ultramafic intrusions similar
to the unit that hosts the recent Julimar discovery ~95km to the south.
Figure 5: Moora Project: Location and Regional geology plan
1 7 | M O O R A G O L D - P G E - N I C K E L - C O P P E R P R O J E C T
Geochemical sampling by Liontown has defined two highly anomalous areas within the Moora Project (Figure 6):
•
•
The 15km long, north-west trending Mt Yule-Felton Corridor, located in the south-western part of the Project; and
The 7x7km Bindi Bindi Nickel Area, located in the central part of the Project.
MT YULE – FELTON CORRIDOR (FIGURE 7)
The Mt Yule – Felton Corridor (MYFC) is a 15km-long, 2.5km wide, NW trending zone containing a number of gold-PGE
anomalies coincident with magnetic highs indicative of near surface, mafic-ultramafic intrusions obscured by shallow cover.
The corridor transitions from being gold-dominant in the north-west to PGE-dominant in the south-east.
Specific targets within the corridor include:
• Mt Yule – a 3.6 x 2.2km, E/W trending gold anomaly (>10ppb) containing multiple plus 100ppb zones with a number
of >500ppb Au assays (up to 925ppb). The gold anomalism is associated with highly elevated PGEs (up to 25ppb
Pd+Pt), nickel (up to 492ppm) and copper (up to 884ppm).
•
•
•
Dalkey – a 1.5 x 2km, N/S trending gold anomaly with assays of up to 127ppb Au. The anomaly is associated with
elevated PGEs (>10ppb Pd+Pt) and coincident with a linear magnetic low, possibly reflecting bedrock alteration and
mineralisation.
Horseshoe – a 3 x 2km area containing a number of PGE anomalies (up to 75ppb Pd+Pt) associated with elevated
gold (>10ppb).
Felton – a 2 x 1.5km area of coincident gold (up to 69ppb Au) and PGE (up to 65ppb Pd+Pt) anomalism located at the
SE end of the corridor where the trend remains open.
Figure 6: Aerial photograph over regional
aeromagnetic image showing anomalous areas
defined by auger geochemistry.
Figure 7: Mt Yule – Felton Corridor: grey scale
magnetic image showing Gold and PGE anomalies
defined by auger sampling (black dots).
The high gold, PGE, nickel and copper results suggest that the interpreted mafic-ultramafic intrusions within the MYFC are
analogous to the unit which hosts the Julimar discovery, where Chalice Gold (ASX;CHN) recently announced a sulphide-
related intersection of 10m @ 1.2g/t Au, 3.5g/t Pd+Pt, 0.1% Ni and 1.3% Cu (see CHN: ASX release 9th July 2020).
BINDI BINDI NICKEL AREA (FIGURE 8)
Liontown’s auger drilling in the Bindi Bindi area has defined a number of nickel anomalies (up to 1,720ppm Ni) including
several which are coincident with mafic-ultramafic bodies mapped by government geologists.
The potential for nickel within the Bindi Bindi area was originally identified by Poseidon Limited in 1968 (see LTR: ASX
release 16th April 2020), with shallow RAB drilling returning a number of significant intersections including
•
•
•
9m @ 0.62% Ni from 0m;
11.5m @ 0.60% Ni from 1.5m; and
21m @ 0.57% Ni from 1.5m.
The area drilled by Poseidon is coincident with Liontown’s northern-most nickel anomaly (Figure 8) and the intersections
were reported to be hosted by strongly weathered, oxidised ultramafic rocks. Poseidon interpreted the elevated nickel values
to be related to primary sulphides at depth based on the steep orientation of the mineralised zones and anomalous
(>300ppm) copper nearby.
1 8 | M O O R A G O L D - P G E - N I C K E L - C O P P E R P R O J E C T
Figure 8: Bindi Bindi area: aerial photograph over coloured magnetic image showing nickel anomalies defined by
auger sampling (black dots).
NEXT STEPS
An airborne electromagnetic (AEM) survey flown on 200m-spaced lines was completed over the entire Project area in late
August 2020.
Electromagnetic techniques have proven to be effective elsewhere in the region, including Julimar, for defining sulphide
bodies and the results of the survey, which are due by late September 2020, will be combined with the auger geochemistry
to plan a maiden drilling program.
Liontown will also extend auger sampling across the remainder of the Project area with a focus on untested magnetic
anomalies.
1 9 | M O O R A G O L D - P G E - N I C K E L - C O P P E R P R O J E C T
Western Australia (100%)
The Buldania Project is the Company’s second lithium discovery in Western Australia
and is located in the southern part of the Eastern Goldfields Province (Figure 9). The
Project is located close to major infrastructure in a region that hosts significant lithium
deposits including the Mt Marion and Bald Hill lithium mines. Exploration by Liontown
has resulted in a greenfields discovery at the Anna prospect where a maiden MRE of
~15Mt @ 1% Li2O was defined during the year.
Figure 9: Regional geology plan of SE Goldfields, WA showing Liontown project areas
2 0 | B U L D A N I A L I T H I U M P R O J E C T
MAIDEN MINERAL RESOURCE ESTIMATE
Liontown engaged Optiro to prepare a maiden MRE for the Anna lithium deposit at Buldania. The Indicated and Inferred
Mineral Resource comprises 14.9Mt @ 0.97% Li2O and 44ppm Ta2O5 and is set out in Table 6 and Table 7 below:
Table 6: Buldania Project/Anna Deposit - Mineral Resource Estimate as at October 2019
Resource category
Million tonnes
Indicated
Inferred
TOTAL
Notes:
9.1
5.9
14.9
Li2O%
0.98
0.95
0.97
Ta2O5 ppm
45
42
44
• Reported above a Li2O cut-off grade of 0.5%
• Tonnages and grades have been rounded to reflect the relative uncertainty of the estimate.
Table 7: Mineral Resource Estimate reported by Li2O% cut-off grades
Cut-off Li2O
Million tonnes
Li2O%
Ta2O5 ppm
0.3
0.4
0.5
0.6
0.7
0.8
0.9
1.0
15.3
15.3
14.9
13.9
12.1
10.1
7.9
6.0
0.95
0.95
0.97
1.00
1.04
1.09
1.16
1.22
44
44
44
44
44
44
44
42
The Mineral Resource estimate is reported and classified in accordance with the guidelines of the 2012 Australasian Code
for Reporting of Exploration Results, Mineral Resources and Ore Reserves (the JORC Code; 2012).
The lithium mineralisation at Buldania is hosted by spodumene-bearing LCT (lithium-caesium-tantalum) type pegmatites
and is fresh from surface. At Anna, the pegmatites are hosted by a sequence of komatiite, high-Mg basalt, dolerite and
carbonaceous shale. Eight mineralised pegmatites (Figure 10) have been identified that are sub-horizontal in the north-west
(dips of 0° to -10°) and which steepen in the south-east (dips of up to -65° to the west and to the east).
The mineralised pegmatites have been drilled over an area of 1,300m by 380m and to a depth of 300m. The individual
mineralised pegmatites are up to 35m thick and have an average thickness of 4m to 9m and a combined average thickness
of 26m.
2 1 | B U L D A N I A L I T H I U M P R O J E C T
Figure 10: Anna Deposit – 3D view (looking north-east) of drill holes and mineralised pegmatites.
The Anna system remains open along strike, down-dip and, in places, up-dip. There is good potential for discoveries
elsewhere within Liontown’s large landholding, which is located in an established, well-serviced mining region close to
transport, power and camp infrastructure.
NEXT STEPS
Documentation is being prepared to support a Mining Lease application over the Anna lithium deposit which will be lodged
in late Q3 2020.
2 2 | B U L D A N I A L I T H I U M P R O J E C T
Queensland (100%)
The 100%-owned Toolebuc Vanadium Project is located in NW Queensland,
approximately 440km west of Townsville (Figure 11) in a region that hosts a number of
large vanadium deposits close to road, rail and social infrastructure. Liontown has
five, wholly-owned tenements which adjoin existing resources held by other
companies and the Project represents a low-cost entry into vanadium, a commodity
that is potentially important to the future of energy storage.
Figure 11: Toolebuc Vanadium Project – location, regional geology and tenure showing mineral resources held by
other parties (in yellow) and Liontown’s Cambridge deposit (in blue).
When Liontown acquired the Project in 2017, it compiled historic drill data which enabled the preparation of an Inferred MRE
of 83.7Mt @ 0.30% V2O5 for the Cambridge deposit. Work during the year focused on validating historic drill results used to
prepare the Cambridge MRE and testing for extensions of the mineralised zone.
2 3 | T O O L E B U C P R O J E C T
Liontown completed a 30-hole/745m aircore drilling program at the Cambridge prospect with better intersections including:
• MAC013
6m @ 0.45% V2O5 from 2m
• MAC015
10m @ 0.45% V2O5 from 10m
• MAC022
9m @ 0.36% V2O5 from 7m
• MAC029
6m @ 0.39% V2O5 from 3m
The drilling intersected similar grades and widths as the historic drilling and defined additional vanadium mineralisation
immediately to the north of the Cambridge MRE (Figure 12). The newly-defined mineralisation covers an area of 3.7km2,
averages 7m in thickness and has an average grade of 0.38% V2O5.
Preliminary metallurgical test work previously commissioned by Liontown indicates good potential to beneficiate the
mineralisation to a higher-grade concentrate that can then be processed to extract the vanadium. The October 2019 drilling
program at Cambridge has provided ample material for future test work.
A review of historical data has also identified a number of other high priority targets including the Runnymede prospect
located 25-30km north-west of Cambridge (Figure 11). Previous drilling at Runnymede has intersected shallow, ore grade
vanadium over a 3.5 x 3.5km area with the mineralised zone open to the north and north-east where extensive, prospective
unexplored Toolebuc Formation has been mapped.
Figure 12: Toolebuc Vanadium Project – Cambridge prospect showing MRE and newly defined mineralisation with
better drill results.
In addition to the known prospects, large areas of the Toolebuc Formation within Liontown’s tenure have yet to be explored
for vanadium and there is good potential for further discoveries.
While the Toolebuc Project represents a quality development and growth opportunity in the battery metals space, Liontown
has decided, that following a strategic review of its corporate priorities, to focus on its Western Australian projects.
Consequently, the Company has commenced a process to either divest the Toolebuc Project or bring in a joint venture
partner to advance it to the next stage.
2 4 | T O O L E B U C P R O J E C T
2 5 | T O O L E B U C P R O J E C T
FINANCIAL PERFORMANCE
The group reported a net loss from continuing operations of $12.8 million for the year which is comparable to the net loss
of $12.7 million in 2019. Exploration and evaluation expenditure increased by $1.2 million which was offset by $1.5 million
in income receivable from Core Lithium Limited (Core) as the conditions of the sale agreement of the Bynoe Lithium
Project, entered into in 2017, were satisfied.
STATEMENT OF CASHFLOWS
Cash and cash equivalents at 30 June 2020 were $5.3 million (2019: $3.4 million). The net increase in cash of $1.9 million
is primarily due to proceeds of $18 million received from a placement of 150,000,000 fully ordinary shares, offset by an
increase in exploration and evaluation expenditure payments and final payment for acquisition of the Buldania Reserve
and Production Royalty.
FINANCIAL POSITION
At balance date the group had net assets of $6.5 million (2019: net liabilities of $18,088), and an excess of current assets
over current liabilities of $6.3 million (2019: deficit of current assets over current liabilities of $0.1 million).
Current assets increased by 86% from $3.8 million at 30 June 2019 to $7.0 million at 30 June 2020 due to an increase in
cash from proceeds of capital raisings and an increase in receivables largely due to the $1.5 million owing from Core
Lithium. Current liabilities decreased by 81% from $3.8 million at 30 June 2019 to $0.6 million at 30 June 2020. The prior
year liabilities included $1.75 million consideration payable for the Buldania Reserve and Production Royalty which was
paid in July 2019. Trade payables have also decreased by $1.2 million.
CORPORATE
CAPITAL RAISINGS
During the year, Liontown successfully raised $18 million via a placement of 150,000,000 fully ordinary shares at an issue
price of $0.12 per share, including $1.43 million placed to Directors. The proceeds have been and will continue to be used
to advance activities at Liontown’s projects.
BYNOE LITHIUM PROJECT – FINAL PAYMENT
Subsequent to year end, Liontown received A$1.5 million in cash from Core. The payment relates to the contingent
consideration pursuant to the Sale Agreement Liontown entered into with Core in 2017 for the sale of the Bynoe Lithium
Project in the Northern Territory (see LTR: ASX release 14th September 2017).
RESPONSE TO COVID
Due to the impact of COVID-19, Liontown reassessed its strategic objectives and funding position to ensure that it can
maintain development momentum at Kathleen Valley.
To conserve cash, effective from the April 1st, 2020, the non-executive directors of Liontown agreed to forego all fees they
receive from the Company. In addition, the Managing Director (David Richards) and Chief Operating Officer (Adam Smits)
agreed to reduce the cash component of their remuneration by 45% and 40% respectively. A general meeting of
shareholders subsequently approved the issue of Service Rights to Directors of Liontown in lieu of cash fees and salary.
In line with its commitments to safeguard the health and well-being of its employees and contractors, Liontown introduced
company-wide protocols consistent with the ongoing advice from the Government and health authorities. Liontown
continues to monitor the advice to ensure its protocols remain relevant.
2 6 | F I N A N C I A L R E V I E W
The Company reviews and reports its Ore Reserves and Mineral Resources at least annually. The date of reporting is 30
June each year, to coincide with the Company’s end of financial year balance date. If there are any material changes to the
Ore Reserves and Mineral Resource estimates for the Company’s mining projects over the course of the year, the Company
is required to report these changes.
KATHLEEN VALLEY LITHIUM PROJECT
The Company reported its maiden Mineral Resource estimate for the Kathleen Valley Lithium-Tantalum Project in Western
Australia on 4 September 2018. The Company has since announced updated Mineral Resource estimates for the Project
on 9 July 2019 and 11 May 2020.
The Kathleen Valley Project MRE
Resource
Category
Measured
Indicated
Inferred
Sub-total
Indicated
Inferred
Sub-total
Total
As at 30 June 20201
As at 9 July 20192
As at 30 June 20193
Million
Tonnes
Li2O %
Ta2O5
ppm
Million
Tonnes
Li2O %
Ta2O5
ppm
Million
Tonnes
Li2O %
Ta2O5
ppm
20
105
32
156
n/a
n/a
n/a
156
1.3
1.4
1.3
1.4
n/a
n/a
n/a
1.4
140
130
110
130
n/a
n/a
n/a
130
17.6
42.2
10.1
69.9
2.5
2.5
5.0
74.9
1.3
1.3
1.1
1.3
1.5
1.3
1.4
1.3
160
140
150
150
120
110
110
140
3.2
12.7
5.3
21.2
-
-
-
1.3
1.4
1.3
1.4
-
-
-
190
160
150
170
-
-
-
21.2
1.4
170
1 Reported above a Li2O cut-off grade of 0.55% which strikes a balance between the potential open pit and underground expected cut-off
grades
2 Reported above a Li2O cut-off grade of 0.50% for open pit potential (above 200 mRL) or 0.7% for underground potential (below 200 mRL).
3 Announced 4 September 2018.
The Company reported its maiden Ore Reserve for the Kathleen Valley Project on 2 December 2019 which was based on
the 9 July 2019 MRE. A revised Ore Reserve estimate will be prepared as part of the new PFS based on the larger 30 June
2020 MRE.
The Kathleen Valley Project Ore Reserve:
Category
Proved
Probable
Total
As at June 30 20201
As at June 30 2019
Million Tonnes
Li2O%
Million Tonnes
Li2O%
17.1
33.3
50.4
1.2
1.2
1.2
-
-
-
-
1 Reported above a Li2O cut-off grade of 0.50%
2 7 | O R E R E S E R V E A N D M I N E R A L R E S O U R C E S T A T E M E N T
BULDANIA LITHIUM PROJECT
The Company reported its maiden Mineral Resource estimate for the Buldania Lithium Project in Western Australia on 8
November 2019.
The Buldania Project Mineral Resource estimate:
Resource
Category
Indicated
Inferred
Total
Million
Tonnes
9.1
5.9
14.9
As at June 30 20201
As at June 30 2019
Li2O %
Ta2O5 ppm
Million
Tonnes
Li2O %
Ta2O5 ppm
0.98
0.95
0.97
45
42
44
-
-
-
-
-
-
1 Reported above a Li2O cut-off grade of 0.50% for open pit potential
TOOLEBUC VANADIUM PROJECT
The Company reported its maiden Mineral Resource estimate for the Toolebuc Vanadium Project in North West Queensland
on 30 July 2018.
The Toolebuc Project Mineral Resource estimate:
As at June 30 2020
As at June 30 2019
Resource
Category
Inferred
Total
Million
Tonnes
83.7
83.7
V2O5%
MoO5 ppm
0.30
0.30
188
188
Million
Tonnes
83.7
83.7
V2O5%
MoO5 ppm
0.30
0.30
188
188
GOVERNANCE ARRANGEMENTS AND INTERNAL CONTROLS
The Company has ensured that the Ore Reserve and Mineral Resources quoted are subject to thorough governance
arrangements and internal controls.
The Ore Reserve for the Kathleen Valley Project was prepared by independent mining consulting group Orelogy with
metallurgical and engineering input provided by Lycopodium.
The Mineral Resource estimates for the Kathleen Valley, Buldania and Toolebuc Projects were prepared by independent
specialist resource and mining consulting group Optiro.
The Company confirms that the Ore Reserve and Mineral Resource statements above are based on and fairly represents
information and supporting documentation prepared by a Competent Person or Persons.
2 8 | O R E R E S E R V E A N D M I N E R A L R E S O U R C E S T A T E M E N T
KATHLEEN VALLEY LITHIUM PROJECT
The Information in this report that relates to Ore Reserves and PFS for the Kathleen Valley Project is extracted from the
ASX announcement “Kathleen Valley Pre-Feasibility Study confirms potential for robust new long-life open pit lithium mine
in WA” released on 2nd December 2019 which is available on www.ltresources.com.au.
The information in this report that relates to Mineral Resources for the Kathleen Valley Project is extracted from the ASX
announcement “Kathleen Valley confirmed as a world-class lithium deposit as Mineral Resource increases to 156Mt @ 1.4%
Li2O” released on the 11th May 2020 which is available on www.ltresources.com.au.
The information in this report that relates to 2020 metallurgical test work for the Kathleen Valley Project is extracted from
the ASX announcement “Liontown defines input criteria for updated PFS at Kathleen Valley Lithium-Tantalum Project, W.A.”
released on 9th June 2020 which is available on www.ltresources.com.au.
The information in this report that relates to Liontown having the world’s 4th largest hard rock (spodumene) lithium resource
base by ownership and the Kathleen Valley project being Australia’s 5th largest lithium resource is extracted from the ASX
announcement “Investor Presentation - September 2020” released on 4th September 2020 which is available on
www.ltresources.com.au.
MOORA GOLD-PGE-NICKEL-COPPER PROJECT
The information in this report that relates to Exploration Results for the Moora Project is extracted from the ASX
announcements “Initial phase of exploration completed at 100%-owned Moora Nickel Project, located north-east of Perth in
Western Australia”, “Strong gold, PGE, nickel and copper anomalism returned from initial fieldwork completed at 100%-
owned Moora Project, WA“ and “Further outstanding gold, PGE and nickel results from 100%-owned Moora Project, WA”
released on 16th April 2020, 13th May 2020 and 13th July 2020 respectively and which are available on
www.ltresources.com.au.
BULDANIA LITHIUM PROJECT
The Information in this report that relates to Mineral Resources for the Buldania Project is extracted from the ASX
announcement “Liontown announces maiden Mineral Resource Estimate for its 100%-owned Buldania Lithium Project, WA”
released on the 8th November 2019 which is available on www.ltresources.com.au .
TOOLEBUC VANADIUM PROJECT
The Information in this report that relates to Mineral Resources for the Cambridge Deposit is extracted from the ASX
announcement “Liontown Announces Maiden 84Mt Vanadium Resource for Toolebuc Project, NW Queensland” released
on the 30th July 2018 which is available on www.ltresources.com.au .
FORWARD LOOKING STATEMENT
This report contains forward-looking statements which involve a number of risks and uncertainties. These forward-looking
statements are expressed in good faith and believed to have a reasonable basis. These statements reflect current
expectations, intentions or strategies regarding the future and assumptions based on currently available information. Should
one or more of the risks or uncertainties materialise, or should underlying assumptions prove incorrect, actual results may
vary from the expectations, intentions and strategies described in this report.
No obligation is assumed to update forward looking statements if these beliefs, opinions and estimates should change or to
reflect other future developments.
2 9 | C O M P E T E N T P E R S O N S T A T E M E N T A ND R E F E R E N C E S
Project
Tenement No.
Registered Holder
Nature of interests
Kathleen Valley
M36/264
M36/265
M36/459
M36/460
M36/696
E36/879
L36/236
L36/237
E70/5217
E70/5286
E70/5287
E63/856
P63/1977
M63/647
E63/1018
E63/1660
E63/1713
M63/0177
Moora
Buldania
Killaloe
LRL (Aust) Pty Ltd (wholly owned
subsidiary of Liontown Resources
Limited).
100% - nickel claw back rights
retained by other party
Liontown Resources Limited
0% - Application
Liontown Resources Limited
LRL (Aust) Pty Ltd (wholly owned
subsidiary of Liontown Resources
Limited).
ERL (Aust) Pty Ltd (wholly owned
subsidiary of Liontown Resources
Limited).
100%
100%
100%
Avoca Resources Pty Ltd
100% of lithium and related
metals only
80% LRL (Aust) Pty Ltd/
20% Cullen Resources Limited
LRL (Aust) Pty Ltd (wholly owned
subsidiary of Liontown Resources
Limited).
80%
100%
Toolebuc
EPM26490
Liontown Resources Limited
100%
EPM26491
EPM26492
EPM26494
EPM26495
3 0 | T E N E M E N T S C H E D U L E
DIRECTORS’ REPORT
3 1 | T E N E M E N T S C H E D U L E
The Directors present their report together with the financial statements of the Group consisting of Liontown Resources
Limited (‘Liontown Resources’ or ‘the Company’) and its controlled entities for the financial year ended 30 June 2020 and
the independent auditor’s report thereon.
1.
DIRECTORS
The names and details of the Company’s directors in office during the financial year and until the date of this report are as
follows. Directors were in office for the entire period unless otherwise stated.
Mr Tim R B Goyder
Non-Executive Chairman
Experience:
Mr Goyder has considerable experience in the resource industry. He has
been involved in the formation and management of a number of publicly
listed companies. Mr Goyder was appointed as Non-Executive Chairman on
2 February 2006.
Interests in shares, options and service
rights at the date of this report:
313,809,143 ordinary shares
3,000,000 unlisted options
331,655 service rights
Special responsibilities:
Member of the Remuneration Committee.
Directorships held in other listed entities
in the last three years:
Mr Goyder is currently Non-Executive Chairman of Chalice Gold Mines
Limited, Non-Executive Chairman of DevEx Resources Limited and was
previously a Non-Executive Director of Strike Energy Limited (resigned 31
December 2018).
Mr David R Richards
Managing Director
Qualifications:
Experience:
BSc (Hons), MAIG
Mr Richards has over 30 years’ experience in mineral exploration in
Australia, Southeast Asia and western USA. His career includes exploration
and resource definition for a variety of gold and base metal deposit styles,
and he led the team that discovered the multi-million ounce, high grade
Vera-Nancy gold deposits in North Queensland. He has held senior
positions with Battle Mountain Australia Inc, Delta Gold Limited, AurionGold
Limited and was Managing Director of ASX-listed Glengarry Resources
Limited from 2003 - 2009. Mr Richards was appointed as Managing Director
on 1 May 2010.
Interests in shares, options and service
rights at the date of this report:
7,787,055 ordinary shares
18,000,000 unlisted options
295,534 service rights
Special responsibilities:
Directorships held in other listed entities
in the last three years:
None
None
3 2 | D I R E C T O R S ’ R E P O R T
Mr Anthony J Cipriano
Independent Non-Executive Director
Qualifications:
Experience:
B.Bus, CA, GAICD
Mr Cipriano is a Chartered Accountant with over 30 years’ accounting and
finance experience. Mr Cipriano was formerly a partner at Deloitte and at
the time of his retirement he was the Deloitte National Tax Leader for
Energy & Resources and leader of its Western Australian Tax Practice. Mr
Cipriano has significant experience working across tax, accounting, legal
and financial aspects of corporate transactions. Mr Cipriano was appointed
as a Non-Executive Director on 1 July 2014.
Interests in shares, options and service
rights at the date of this report:
13,604,105 ordinary shares
4,500,000 unlisted options
88,957 service rights
Special responsibilities:
Chairman of the Audit Committee, Chairman of the Remuneration
Committee.
Directorships held in other listed entities
in the last three years:
None
Mr Craig R Williams
Independent Non-Executive Director
Qualifications:
Experience:
BSc (Hons)
Mr Williams is a Geologist with over 40 years’ experience in mineral
exploration and development. Mr Williams co-founded Equinox Minerals
Limited in 1993 and was President, Chief Executive Officer and Director
prior to Barrick Gold’s takeover of Equinox. He has been directly involved
in several significant discoveries, including the Ernest Henry Deposit in
Queensland and a series of gold deposits in Western Australia. In addition
to his technical capabilities, he also has extensive corporate management
and financing experience. Mr Williams was appointed as a Non-Executive
Director on 14 November 2006.
Interests in shares, options and service
rights at the date of this report:
27,590,277 ordinary shares
2,000,000 unlisted options
88,957 service rights
Special responsibilities:
Member of the Audit Committee, Member of the Remuneration Committee.
Directorships held in other listed entities
in the last three years:
Mr Williams is currently Chairman of OreCorp Limited.
Mr Steven J M Chadwick
Independent Non-Executive Director
Qualifications:
Experience:
BAppSc, AusIMM
Mr Chadwick has over 40 years' experience in the mining industry,
incorporating technical, operating and management roles, as well as a
strong metallurgical background. He was a founding Director of BC Iron
Limited and a former Managing Director of Coventry Resources, PacMin
Mining Limited and Northern Gold Limited, prior to their corporate
acquisitions. Mr Chadwick was also a Director of and consulted to major
Canadian miner Teck Resources' Australian subsidiary for ten years. Mr
Chadwick was appointed as a Non-Executive Director on 10 January 2019.
Interests in shares, options and service
rights at the date of this report:
8,209,511 ordinary shares
2,000,000 unlisted options
76,964 service rights
Special responsibilities:
None
Directorships held in other listed entities
in the last three years:
Mr Chadwick is currently an Executive Director of Quantum Graphite Limited
and Non-Executive Director of Lycopodium Limited.
3 3 | D I R E C T O R S ’ R E P O R T
2.
COMPANY SECRETARY
The names and details of the Company Secretary in office during the financial year and until the date of this report are as
follows:
Mr Craig E Hasson (appointed 6 November 2019)
Qualifications:
Experience:
B.Com, CA, AGIA
Mr Hasson is a Chartered Accountant and Chartered Secretary with over 17
years of accounting and corporate experience in the resources and energy
industries. Craig commenced his career at Ernst & Young and has since
held a range of finance and commercial positions with publicly listed
companies.
Ms Kym A Verheyen resigned as Company Secretary on 5 November 2019.
3.
DIRECTORS’ MEETINGS
The number of meetings of Directors (including meetings of committees of Directors) held during the year and the number
of meetings attended by each Director were as follows:
Directors’
Meetings
Audit
Committee
Risk
Committee(1)
Remuneration
Committee
Nomination
Committee(1)
No. of meetings held:
No. of meetings
attended:
T R B Goyder
D R Richards
C R Williams
A J Cipriano
S J M Chadwick
9
9
8
9
9
9
2
-
-
2
2
-
-
-
-
-
-
-
1
1
1
1
1
1
-
-
-
-
-
-
(1)Given the current size and composition of the Board, the Company has not established a separate risk or nomination committee. The role
of these committees are performed by the full Board and any matters to be dealt with by these committees are included in board meetings.
A remuneration committee was established during the year. Prior to establishment, any matters to be dealt with by the
remuneration committee were included in Board meetings.
4.
PRINCIPAL ACTIVITIES
The principal activities of the Company during the course of the financial year were mineral exploration and evaluation.
5.
REVIEW OF OPERATIONS
The Directors present the Operating and Financial Review of the Group for the year ended 30 June 2020. The information
provided in this review forms part of the Director’s Report and provides information to assist users in assessing the
operations, financial position and business strategies of the Group. Please refer to pages 7 to 26 of the Annual Report.
6.
SIGNIFICANT CHANGES IN THE STATE OF AFFAIRS
There were no significant changes to the state of affairs other than those noted elsewhere in this financial report.
7.
DIVIDENDS
No dividends were declared or paid during the period and the Directors recommend that no dividend be paid.
8.
EVENTS SUBSEQUENT TO REPORTING DATE
In July 2020, the Company received $1.5 million in cash from Core Lithium Limited ("Core") in relation to the contingent
consideration pursuant to the sale agreement Liontown Resources entered into with Core in 2017 for the sale of the Bynoe
Lithium Project in the Northern Territory.
On 3 July 2020 1,253,619 service rights were issued to key management personnel in lieu of the payment of a portion of
cash salary or fees otherwise payable.
3 4 | D I R E C T O R S ’ R E P O R T
No other matters or circumstances have arisen since 30 June 2020 that have significantly affected, or may significantly
affect the consolidated entity’s operations, the results of those operations, or the consolidated entity’s state of affairs in future
financial years.
9.
LIKELY DEVELOPMENTS
There are no likely developments that will impact on the Company other than as disclosed elsewhere in this report.
10.
INDEMNIFICATION AND INSURANCE OF DIRECTORS AND OFFICERS
The Company has taken out an insurance policy insuring Directors and Officers of the Company and its subsidiaries against
any liability arising from a claim bought by a third party against its current or former Directors or Officers and against liabilities
for costs and expenses incurred by them in defending any legal proceedings arising out of their conduct while acting in their
capacity as a Director or Officer of the Company, other than conduct involving a wilful breach of duty in relation to the
Company.
The Company indemnifies each of the Directors and Officers of the Company. Under its Constitution, the Company will
indemnify those Directors or Officers against any claim or for any expenses or costs which may arise as a result of work
performed in their respective capacities as Directors or Officers of the Company and any related entity.
11. PROCEEDINGS ON BEHALF OF THE 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 part of those
proceedings.
12. ENVIRONMENTAL REGULATIONS
The Company is subject to material environmental regulation in respect to its exploration activities. The Company aims to
ensure the appropriate standard of environmental care is achieved, and in doing so, that it is aware of and is compliant with
all environmental legislation. The Directors of the Company are not aware of any breach of environmental legislation for the
period under review.
13. NON-AUDIT SERVICES
During the year HLB Mann Judd, the Company’s auditor, performed no other services in addition to their statutory audit
duties.
14. OPTIONS AND SERVICE RIGHTS GRANTED OVER UNISSUED SHARES
(a) Options
At the date of this report 65,800,000 fully paid ordinary shares of the Company are under option on the following terms and
conditions:
Exercisable at $0.035 each on or before 31 March 2021
Exercisable at $0.035 each on or before 28 March 2022
Exercisable at $0.02 each on or before 31 October 2022
Exercisable at $0.15 each on or before 28 November 2022
Exercisable at $0.1122 each on or before 16 March 2023
Exercisable at $0.15 each on or before 4 June 2023
Exercisable at $0.035 each on or before 28 November 2023
Total Options
(b) Service Rights
Number
800,000
7,500,000
10,700,000
21,300,000
10,000,000
2,000,000
13,500,000
65,800,000
At the date of this report, 1,253,619 service rights were on issue in lieu of salary and fees on the following terms and
conditions:
Expire on 30 September 2022, with a nil exercise price
Number
1,253,619
3 5 | D I R E C T O R S ’ R E P O R T
15. REMUNERATION REPORT – AUDITED
(a) Introduction
This remuneration report for the year ended 30 June 2020 outlines remuneration arrangements in place for Directors and
other members of the key management personnel (“KMP”) of Liontown Resources in accordance with the requirements of
the Corporations Act 2001 (the Act) and its regulations. This information has been audited as required by section 308(3C)
of the Act.
The remuneration report details the remuneration for KMP who 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 parent company. KMP’s during or since year end were:
(i) Directors
•
•
•
•
•
T Goyder (Chairman)
D Richards (Managing Director)
C Williams (Non-executive Director)
A Cipriano (Non-executive Director)
S Chadwick (Non-executive Director)
(ii) Executives
•
•
•
A Smits (COO) (appointed 16 March 2020)
C Hasson (CFO) (appointed 4 June 2020)
R Hacker (CFO) (ceased 4 June 2020)
There were no other changes to KMP after the reporting date and before the date the financial report was authorised for
issue.
(b) Remuneration philosophy
The performance of the Company depends upon the quality of the Directors and executives. The philosophy of the Company
in determining remuneration levels is to set competitive remuneration packages to attract and retain high calibre employees
and to link a significant component of executive rewards to shareholder value creation. The size, nature and financial
strength of the Company is also taken into account when setting remuneration levels so as to ensure that the operations of
the Company remain sustainable.
(c) Remuneration Committee
A Remuneration Committee was established on 20 May 2020. Prior to this date, the Board performed the role of the
Remuneration Committee. The Remuneration Committee is responsible for determining and reviewing compensation
arrangements for the Directors, the Managing Director and any Executives.
(d) Remuneration structure
In accordance with best practice corporate governance, the structure of non-executive and executive remuneration is
separate and distinct.
Non-Executive Director remuneration
The Board recognises the importance of attracting and retaining talented non-executive Directors and aims to remunerate
these Directors in line with fees paid to Directors of companies of a similar size and complexity in the mining and exploration
industry. The Board seeks to set aggregate remuneration at a level that provides the Company with the ability to attract and
retain Directors of the highest calibre, whilst incurring a cost that is acceptable to shareholders.
The Company’s Constitution and the ASX Listing Rules specify that the aggregate fees to be paid to non-executive directors
for their role as a Director are to be approved by shareholders at a general meeting. At the Company’s 2018 AGM,
Shareholders approved an aggregate amount of fees up to $500,000 per year (including superannuation).
The amount of total compensation apportioned amongst Directors is reviewed annually and the Board considers advice from
external shareholders as well as the fees paid to non-executive directors of comparable companies when undertaking the
annual review process. The Board will not seek any increase for the non-executive pool at the 2020 AGM.
The remuneration of non-executive directors consists of directors’ fees, consulting fees (where applicable) and an additional
fee of $5,475 (inclusive of superannuation) per annum is paid to members of the Audit Committee to recognise additional
time commitment required for the Audit Committee.
The Non-Executive Directors are not entitled to receive retirement benefits and, at the discretion of the Board, may
participate in the Employee Securities Incentive Scheme (“Scheme”) (refer below for further details of the Scheme), subject
to approvals required by shareholders.
3 6 | D I R E C T O R S ’ R E P O R T
The Board considers it may be appropriate to issue options to Non-Executive Directors given the current nature and size of
the Company as, until profits are generated, conservation of cash reserves remain a high priority. Any options issued to
Directors will require separate shareholder approval.
Apart from their duties as Directors, some Non-Executive Directors may undertake work for the Company on a consultancy
basis pursuant to the terms of any consultancy services agreement. The nature of the consultancy work may vary depending
on the expertise of the relevant Non-Executive Director. Under the terms of any consultancy agreements Non-Executive
Directors would receive a daily rate or a monthly retainer for the work performed at a rate comparable to market rates that
they would otherwise receive for their consultancy services.
During the year Mr Chadwick received fees for his consultancy services of $47,000 (30 June 2019: $9,600). No fees were
paid to other Non-Executive Directors under consultancy services agreement.
Executive remuneration
The Company’s executive remuneration strategy is designed to attract, motivate and retain high performance individuals
and align the interests of executives and shareholders. Remuneration consists of fixed remuneration and variable
remuneration (comprising short-term and long-term incentive schemes).
Fixed remuneration
Fixed remuneration is reviewed informally on an annual basis by the Remuneration Committee and the Board and generally
consists of a review of relevant comparative remuneration in the market and, where appropriate, external advice is sought
on policies and practices.
Variable remuneration - Long term incentive scheme
The Company may issue equity securities (i.e. options or performance rights) under the Employee Securities Incentive
Scheme (“Scheme”) to attract, motivate and retain Directors, employees and consultants of the Company and to provide an
opportunity to participate in the growth of the Company. The Scheme was last approved by Shareholders at the 2018 AGM.
Under the Scheme, the Company can issue either share options or rights, and generally, the Company believes that the
issue of share options or rights in the Company aligns the interests of Directors, employees and shareholders alike. No
formal performance hurdles are set on options issued to executives, other than vesting periods in certain circumstances,
however the Company believes that as options are issued at a price in excess of the Company’s current share price at the
date of issue of those options, there is an inherent performance hurdle as the share price of the Company’s shares has to
increase before any reward can accrue to the executive.
Short term incentive schemes
The Company currently has no formal performance related remuneration policy which governs the payment of annual cash
bonuses upon meeting pre-determined performance targets. However, the Board may consider performance related
remuneration in the form of cash or share options when they consider these to be warranted. There were no bonuses paid
to or received by executives in the years ended 30 June 2020 and 30 June 2019.
Service Rights
During the year service rights were issued to KMP in lieu of the payment of a portion of the cash salary or fees otherwise
payable. Service rights have been used as a measure to conserve cash in light of the COVID-19 pandemic. Service rights
vest at the end of the relevant quarter.
Link between performance and executive remuneration
The focus of executive remuneration over the financial year was fixed remuneration and options under the Scheme (i.e.
growing the value of Company as reflected through share price) which seeks to ensure that executive remuneration is
appropriately aligned with the Business strategy and shareholder interests.
The share price performance over the last 5 years is as follows:
30 June 2016
30 June 2017
30 June 2018
30 June 2019
30 June 2020
Share price
0.017
0.009
0.028
0.10
0.105
3 7 | D I R E C T O R S ’ R E P O R T
(e) Remuneration of Key Management Personnel
The table below shows the fixed and variable remuneration for key management personnel.
2020
Short-term benefits
Post-
employment
benefits
Long term
incentives
s
e
e
f
y
c
n
a
t
l
u
s
n
o
C
$
s
e
e
f
&
y
r
a
a
S
l
$
i
s
t
h
g
R
e
c
v
r
e
S
i
$
)
2
(
s
t
n
u
o
m
a
r
e
h
t
O
$
n
o
i
t
a
u
n
n
a
r
e
p
u
S
$
)
3
(
s
n
o
i
t
p
O
$
l
a
t
o
T
$
Directors
T Goyder
D Richards
C Williams
A Cipriano
S Chadwick(1)
Executives
A Smits(4)
C Hasson(5)
R Hacker(6)
Total
103,767
243,150
27,832
27,832
-
-
-
-
49,402
3,381
9,858
138,021
304,429
44,022 15,317
23,099
230,034
555,622
13,251
3,381
13,251
3,381
2,644
2,644
92,014
139,122
92,014
139,122
26,368
47,000
11,464
3,381
-
92,014
180,227
50,000
12,235
-
-
-
-
40,807 41,936
10,016
398
4,750
1,162
239,916
377,409
13,694
37,505
-
3,141
-
84,027
87,168
491,184
47,000
182,213 74,316
44,157
981,734 1,820,604
2019
Short-term benefits
Post-
employment
benefits
Long term
incentives
s
e
e
f
y
c
n
a
t
l
u
s
n
o
C
$
s
e
e
f
&
y
r
a
l
a
S
$
i
s
t
h
g
R
e
c
i
v
r
e
S
$
)
2
(
s
t
n
u
o
m
a
r
e
h
t
O
$
129,502
262,557
37,110
37,110
-
-
-
-
16,728
9,600
-
-
-
3,999
- 10,002
-
-
-
-
3,999
3,999
1,884
-
n
o
i
t
a
u
n
n
a
r
e
p
u
S
$
12,303
24,943
3,525
3,525
-
-
)
3
(
s
n
o
i
t
p
O
$
l
a
t
o
T
$
74,036
219,840
92,546
390,048
46,273
90,907
46,273
90,907
76,714
104,926
52,581
52,581
Directors
T Goyder
D Richards
C Williams
A Cipriano
S Chadwick(1)
Executives
R Hacker(6)
Total
483,007
9,600
- 23,883
44,296
388,423
949,209
3 8 | D I R E C T O R S ’ R E P O R T
e
c
n
a
m
r
o
f
r
e
p
n
o
i
t
a
r
e
n
u
m
e
r
f
o
n
o
i
t
r
o
p
o
r
P
%
d
e
s
a
b
45
41
66
66
51
64
37
96
-
e
c
n
a
m
r
o
f
r
e
p
n
o
i
t
a
r
e
n
u
m
e
r
f
o
n
o
i
t
r
o
p
o
r
P
%
d
e
s
a
b
34
24
51
51
73
100
-
(1) Mr Chadwick receives Directors’ fees and consulting fees via a consultancy agreement with the company. Amounts are billed based on
normal market rates for such consultancy services and were due and payable under normal payment terms. Mr Chadwick was appointed
as a Non-executive Director on 10 January 2019.
(2) Other amounts, where applicable, includes the cost to the Company of providing time off in lieu, fringe benefits and the attributable non-
cash benefit applied by virtue of the Company’s Directors and Officers Liability policy.
(3) The fair value of the options is calculated using a Black-Scholes valuation model and allocated to each reporting period starting from
grant date to vesting date.
(4) Mr Smits commenced as COO on 16 March 2020.
(5) Mr Hasson commenced as CFO on 4 June 2020.
(6) Mr Hacker did not receive any salary and wages for the 2020 and 2019 financial years as Mr Hacker is remunerated by Chalice Gold
Mines Limited and his services are recovered through a corporate services agreement between the Company and Chalice Gold Mines
Limited. Mr Hacker ceased as CFO on 4 June 2020.
(f) Key Management Personnel Shareholdings
The relevant interest of each of the key management personnel in the share capital of the Company was:
Balance
1 July 2019
No. shares
Held at
commencement
date (2),(3)
No. shares
On
exercise
of options
No.
shares
Acquisitions/
(Disposals) (1)
No. shares
Held at
cessation
date (4)
No. shares
Balance
30 June 2020
No. shares
Directors
T Goyder
281,421,980
- 10,000,000
17,766,666
D Richards
5,117,800
C Williams
20,095,747
A Cipriano
9,144,575
S Chadwick
6,766,995
Executives
A Smits (2)
C Hasson (3)
-
-
R Hacker (4)
6,250,000
-
-
-
-
-
100,000
-
-
-
-
-
-
-
-
250,000
1,868,333
1,333,333
1,333,333
-
-
(871,893)
5,378,107
-
-
-
-
-
-
-
309,188,646
5,367,800
21,964,080
10,477,908
8,100,328
-
100,000
n/a
Balance
1 July 2018
No. shares
Held at
commencement
date (5)
No. shares
On
exercise
of options
No. shares
Acquisitions/
(Disposals) (1)
No. shares
Held at
resignation
date
No. shares
Balance
30 June 2019
No. shares
Directors
T Goyder
226,184,982
D Richards
3,431,500
C Williams
14,663,122
A Cipriano
6,370,479
-
-
-
-
-
-
-
-
55,236,998
1,686,300
5,432,625
2,774,096
S Chadwick (5)
Executives
-
639,162
3,500,000
2,627,833
R Hacker
4,250,000
-
-
2,000,000
-
-
-
-
-
-
281,421,980
5,117,800
20,095,747
9,144,575
6,766,995
6,250,000
(1) Acquisitions/ Disposals refer to shares purchased and sold on the open market or via participation in the Company’s capital raisings that
have taken place during the year.
(2) Mr Smits commenced as COO on 16 March 2020.
(3) Mr Hasson commenced as CFO on 4 June 2020.
(4) Mr Hacker ceased as CFO on 4 June 2020.
(5) Mr Chadwick was appointed as a Non-executive Director on 10 January 2019.
3 9 | D I R E C T O R S ’ R E P O R T
(g) Share-based Payments
As outlined in the Remuneration Report, Directors, key employees and consultants may be eligible to participate in equity-
based compensation schemes via the Employee Securities Incentive Plan (“Scheme”).
Options
Under the terms and conditions of the Scheme, options issued allow the holder the right to subscribe to one fully paid
ordinary share. Any option not exercised before the expiry date will lapse on the expiry date.
During the reporting period, 28,000,000 options were granted to KMP and those options have been valued using the Black-
Scholes option valuation method. The following table lists the inputs to the model:
Grant date
Dividend yield
Expected volatility
Risk-free interest rate
Expected life of options (years)
Exercise price
Grant date share price
Executives
O15
Executives
O17
Executives
O18
Directors
O15
27 September 2019
16 March 2020
5 June 2020
27 November 2019
Nil
114%
0.70%
3
$0.150
$0.098
Nil
115%
0.45%
3
$0.1122
$0.080
Nil
90%
0.28%
3
$0.150
$0.130
Nil
111%
0.69%
3
$0.150
$0.082
Expiry date
Number
28 November 2022
16 March 2023
4 June 2023
28 November 2022
2,000,000
10,000,000
2,000,000
14,000,000
Fair value at grant date
$0.061
$0.050
$0.069
$0.046
There are no participating rights or entitlements inherent in the options and the holders will not be entitled to participate in
new issues of capital offered to shareholders during the currency of the options. All shares allotted upon the exercise of
options will rank pari passu in all respect with other shares.
The below table shows a reconciliation of the number of options held by each KMP during the year:
t
n
e
m
e
c
n
e
m
m
o
c
.
o
N
t
a
d
l
e
H
e
t
a
d
n
o
i
t
a
r
e
n
u
m
e
r
s
a
d
e
t
n
a
r
G
.
o
N
9
1
0
2
y
l
u
J
1
e
c
n
a
l
a
B
.
o
N
e
t
a
d
t
n
a
r
G
.
o
N
2020
d
e
s
i
c
r
e
x
E
s
n
o
i
t
p
O
.
o
N
f
o
e
t
a
d
t
a
d
l
e
H
n
o
i
t
a
n
g
i
s
e
r
.
o
N
0
2
0
2
e
n
u
J
0
3
e
c
n
a
l
a
B
.
o
N
d
e
t
s
e
V
%
3,000,000 27/11/2019
(10,000,000)
-
3,000,000
100%
Directors
T Goyder
10,000,000
D Richards
15,000,000
C Williams
5,500,000
A Cipriano
5,500,000
S Chadwick
Executives
A Smits(1)
C Hasson(2)
-
-
-
-
-
-
-
5,000,000 27/11/2019
2,000,000 27/11/2019
2,000,000 27/11/2019
2,000,000 27/11/2019
- 10,000,000 16/03/2020
- 2,000,000
2,000,000
5/06/2020
-
-
-
-
-
-
- 20,000,000
100%
-
-
-
7,500,000
100%
7,500,000
100%
2,000,000
100%
- 10,000,000
33%
-
4,000,000
0%
R Hacker(3)
6,000,000
-
2,000,000 27/09/2019
- 8,000,000
n/a
75%
4 0 | D I R E C T O R S ’ R E P O R T
t
n
e
m
e
c
n
e
m
m
o
c
.
o
N
t
a
d
e
H
l
8
1
0
2
y
u
J
1
l
e
c
n
a
a
B
l
.
o
N
2019
Directors
T Goyder
6,000,000
D Richards
10,000,000
C Williams
3,000,000
A Cipriano
3,000,000
S Chadwick(4)
-
Executives
e
t
a
d
-
-
-
-
-
n
o
i
t
a
r
e
n
u
m
e
r
s
a
d
e
t
n
a
r
G
.
o
N
e
t
a
D
t
n
a
r
G
.
o
N
d
e
s
i
c
r
e
x
E
s
n
o
i
t
p
O
.
o
N
f
o
e
t
a
d
t
a
d
e
H
l
n
o
i
t
a
n
g
s
e
r
i
.
o
N
9
1
0
2
e
n
u
J
0
3
e
c
n
a
a
B
l
.
o
N
d
e
t
s
e
V
%
4,000,000
28/11/2018
5,000,000
28/11/2018
2,500,000
28/11/2018
2,500,000
28/11/2018
-
-
-
-
3,500,000
1/05/2019
(3,500,000)
-
-
-
-
-
-
10,000,000
100%
15,000,000
100%
5,500,000
100%
5,500,000
100%
-
-
6,000,000
100%
R Hacker
3,000,000
-
3,000,000
20/12/2018
-
(1) Mr Smits commenced as COO on 16 March 2020.
(2) Mr Hasson commenced as CFO on 4 June 2020.
(3) Mr Hacker ceased as CFO on 4 June 2020.
(4) Mr Chadwick was appointed as a Non-executive Director on 10 January 2019.
Service Rights
During the year service rights were issued to the KMP listed below, in lieu of the payment of a portion of the cash salary or
fees otherwise payable. Service rights have been used as a measure to conserve cash in light of the COVID-19 pandemic.
Service rights vest at the end of the quarter in which they are issued. The fair value of the service rights granted has been
determined using the share price at the grant date.
The below table shows a reconciliation of the number of service rights held by each KMP during the year:
2020
Directors
T Goyder
D Richards
C Williams
A Cipriano
S Chadwick
Executives
A Smits(1)
C Hasson(2)
R Hacker(3)
Balance
1 July 2019
Held at
commencement
date
Granted as
remuneration
Service Rights
Exercised
Balance
30 June 2020
-
-
-
-
-
-
-
-
-
-
-
-
-
-
170,031
-
470,497
419,255
126,197
126,197
109,183
340,062
-
-
-
-
-
-
-
-
-
-
470,497
419,255
126,197
126,197
109,183
340,062
170,031
-
(1) Mr Smits commenced as COO on 16 March 2020.
(2) Mr Hasson commenced as CFO on 4 June 2020.
(3) Mr Hacker ceased as CFO on 4 June 2020.
4 1 | D I R E C T O R S ’ R E P O R T
(h) Employment Contracts
Remuneration arrangements for KMP are generally formalised in employment agreements. Details of these contracts are
provided below.
Name and job title
Employment contract
duration
D Richards
Unlimited
A Smits
Unlimited
C Hasson
Unlimited
Notice period
Termination provisions
3 months by the Company
and employee
12 months in the event of a
change of control event
6 months in the event of a
material change
3 months by the Company
and employee
6 months in the event of a
material change
3 months by the Company
and employee
6 months in the event of a
material change
R Hacker(1)
n/a
n/a
n/a
(1)Chalice Gold Mines Limited provides corporate services to the Company which includes the services of Mr Hacker. Details of the
Corporate Services Agreement between the two companies is outlined below.
(i) Other Transactions with Key Management Personnel
A number of key management persons, or their related parties, hold positions in other entities that result in them having
control or significant influence over the financial or operating policies of those entities.
A number of these entities transacted with the Group during any given reporting period. The terms and conditions of the
transactions with management persons and their related parties were no more favourable than those available, or which
might reasonably be expected to be available, on similar transactions to non-Director related entities on an arm’s length
basis.
The Group receives corporate services including office rent and facilities, management and accounting services under a
Corporate Services Agreement with Chalice Gold Mines Limited. Mr Goyder is the Executive Chairman (Non-Executive as
of 1 September 2020) and Mr Hacker is the CFO of Chalice Gold Mines Limited. Amounts billed are based on a proportionate
share of the cost to Chalice Gold Mines Limited of providing the services and have normal payment terms. The amount
recognised in the consolidated statement of profit and loss and comprehensive income for the year was $241,845 (2019:
$249,107) and the amount unpaid as at 30 June 2020 was $11,227 (2019: $27,746).
The Group received database administrative services and field services from related parties to the Managing Director, Mr
Richards. These services are provided on arm’s length commercial terms. The total value of these services was $159,751
(2019: $124,728) and the amount unpaid as at 30 June 2020 was $2,581 (2019: $2,842).
Mr Chadwick provides general metallurgical and technical advisory services to the Company through a consultancy
agreement. There is no fixed remuneration component under the consultancy agreement for these services and those
services are provided on an “as required basis” at a rate of $2,000 per day. Either party may terminate the agreement by
providing one month’s notice. Consultancy fees are due and payable under normal payment terms. For the reporting period,
the amount incurred was $47,000 (2019: $9,600) and the amount unpaid as at 30 June 2020 was $2,000 (2019: nil).
The Group received accounting services from a related party of the CFO, Mr Hasson. The total value of these services was
$613 (2019: nil) and the amount unpaid as at 30 June 2020 was nil (2019: nil).
This is the end of the audited information.
16. AUDITOR’S INDEPENDENCE DECLARATION
The auditor’s independence declaration is set out on page 44 and forms part of the Directors’ Report for the year ended 30
June 2020.
4 2 | D I R E C T O R S ’ R E P O R T
17. CORPORATE GOVERNANCE
The Directors of the Group support and adhere to the principles of corporate governance, recognising the need for the
highest standard of corporate behaviour and accountability.
Please refer to the corporate governance statement dated 16th September 2020 released to ASX and posted on the
Company website at http://www.ltresources.com.au/corporate-governance.
This report is made with a resolution of the Directors:
David R Richards
Managing Director
Dated at Perth the 16th day of September 2020
4 3 | D I R E C T O R S ’ R E P O R T
AUDITOR’S INDEPENDENCE DECLARATION
As lead auditor for the audit of the consolidated financial report of Liontown Resources Limited for
the year ended 30 June 2020, 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
16 September 2020
D I Buckley
Partner
4 4 | A U D I T O R ’ S I N D E P E N D E N C E D E C L A R A T I O N
FINANCIAL REPORT
4 5 | A U D I T O R ’ S I N D E P E N D E N C E D E C L A R A T I O N
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER
COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2020
Note
2020
$
2019
$
Continuing operations
Revenue
Other income
Net fair value loss on fair value of equity instruments designated as
FVTPL
Exploration and evaluation expenditure expensed
Corporate administrative expenses
Share based payments
Impairment loss on loan
Loss from continuing operations
5(a)
5(d)
5(b)
8
538
1,500,000
-
(11,247,727)
(1,805,018)
(1,380,033)
-
(12,932,240)
1,450
-
(139,012)
(10,013,181)
(2,023,817)
(563,788)
(30,912)
(12,769,260)
Net financing income
5(e)
99,250
45,545
Loss before income tax
(12,832,990)
(12,723,715)
Income tax expense
Net loss after tax
6
-
-
(12,832,990)
(12,723,715)
Other comprehensive loss
Items reclassified to profit or loss
Exchange differences on translation of foreign operations:
Members of the parent
-
(5,493)
Total comprehensive loss for the year
(12,832,990)
(12,729,208)
Earnings per share attributable to the owners of Liontown
Resources Limited
Basic and diluted loss per share (cents per share)
7
(0.766)
(1.018)
The consolidated statement of profit or loss and other comprehensive income is to be read in conjunction with the
accompanying notes.
4 6 | C O N S O L I D A T E D S T A T E M E N T O F P R O F I T O R L O S S A N D O T H E R C O M P R E H E N S I V E I N C O M E
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2020
Current assets
Cash and cash equivalents
Trade and other receivables
Total current assets
Non-current assets
Financial assets
Property, plant and equipment
Right-of-use assets
Total non-current assets
Total assets
Current liabilities
Trade and other payables
Employee benefits
Lease liabilities
Total current liabilities
Non-current liabilities
Employee benefits
Lease liabilities
Total liabilities
Net assets/(liabilities)
Equity
Share capital
Accumulated losses
Reserves
Total equity
Note
2020
$
2019
$
9
10
11
12
12
13
14
5,257,849
1,773,070
7,030,919
3,363,269
414,985
3,778,254
76,812
123,146
109,703
309,661
54,400
44,424
-
98,824
7,340,580
3,877,078
553,101
148,980
43,076
745,157
1,512
74,237
75,749
3,759,149
136,017
-
3,895,166
-
-
-
820,906
3,895,166
6,519,674
(18,088)
63,219,270
(58,996,115)
2,296,519
6,519,674
45,228,551
(46,591,731)
1,345,092
(18,088)
The consolidated statement of financial position is to be read in conjunction with the accompanying notes.
4 7 | C O N S O L I D A T E D S T A T E M E N T O F F I N A N C I A L P O S I T I O N
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2020
Issued
capital
$
Accumulated
losses
$
Share
based
payments
reserve
$
Foreign
currency
translation
reserve
$
Total equity
$
As at 1 July 2019
45,228,551
(46,591,731)
1,206,001
139,091
(18,088)
Loss for the period
Total comprehensive loss for the year
-
-
(12,832,990)
(12,832,990)
-
-
-
-
(12,832,990)
(12,832,990)
Transactions with owners in their
capacity as owners:
Issue of shares (net of costs)
Share-based payments
Transfer between equity items
As at 30 June 2020
17,990,719
-
-
63,219,270
-
-
428,606
(58,996,115)
-
1,380,033
(428,606)
2,157,428
-
-
-
139,091
17,990,719
1,380,033
-
6,519,674
Issued
capital
$
Accumulated
losses
$
Share
based
payments
reserve
$
Foreign
currency
translation
reserve
$
Total equity
$
As at 1 July 2018
37,199,397
(33,982,669)
526,129
144,584
3,887,441
Loss for the period
Other comprehensive loss
Total comprehensive loss for the year
-
-
-
(12,723,715)
-
(12,723,715)
-
-
-
-
(5,493)
(5,493)
(12,723,715)
(5,493)
(12,729,208)
Transactions with owners in their
capacity as owners:
Issue of shares (net of costs)
Share-based payments
Transfer between equity items
As at 30 June 2019
8,029,154
-
-
45,228,551
-
-
114,653
(46,591,731)
-
794,525
(114,653)
1,206,001
-
-
-
139,091
8,029,154
794,525
-
(18,088)
The consolidated statement of changes in equity is to be read in conjunction with the accompanying notes.
4 8 | C O N S O L I D A T E D S T A T E M E N T O F C H A N G E S I N E Q U I T Y
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2020
Cash flows from operating activities
Cash paid to suppliers and employees
Payments for exploration and evaluation
Interest received
Interest paid
Acquisition of royalty rights
Net cash used in operating activities
Cash flows from investing activities
Proceeds from sale of financial assets
Payments for property, plant and equipment
Net cash (used in) / from investing activities
Cash flows from financing activities
Proceeds from issue of shares
Share application monies held on trust
Payment for share issue costs
Repayment of lease liabilities
Security deposits
Net cash from financing activities
Net increase in cash and cash equivalents
Effect of exchange rate fluctuations on cash held
Cash and cash equivalents at the beginning of the financial year
Cash and cash equivalents at the end of the financial year
Note
2020
$
2019
$
(2,073,183)
(11,932,326)
107,820
(8,588)
(1,850,000)
(15,756,277)
(1,816,601)
(6,181,008)
46,079
-
(250,000)
(8,201,530)
-
(122,314)
(122,314)
18,900,250
(163,750)
(911,944)
(28,957)
(22,413)
17,773,186
1,894,595
(15)
3,363,269
5,257,849
1,090,258
(11,447)
1,078,811
8,046,955
163,750
(577,171)
-
(4,400)
7,629,134
506,415
110
2,856,744
3,363,269
9
9
The consolidated statement of cash flows is to be read in conjunction with the accompanying notes.
4 9 | C O N S O L I D A T E D S T A T E M E N T O F C A S H F L O W S
FOR THE YEAR ENDED 30 JUNE 2020
BASIS OF PREPARATION
Note 1: Corporate information
Note 2: Reporting entity
Note 3: Basis of preparation
PERFORMANCE FOR THE YEAR
Note 4: Segment reporting
Note 5: Other income and expenses
Note 6: Income tax
Note 7: Loss per share
SHARE BASED PAYMENTS
Note 8: Share-based payments
ASSETS
Note 9: Cash and cash equivalents
Note 10: Trade and other receivables
EQUITY AND LIABILITIES
Note 11: Trade and other payables
Note 12: Employee benefits
Note 13: Capital and capital management
Note 14: Reserves
FINANCIAL INSTRUMENTS
Note 15: Financial instruments
GROUP COMPOSITION
Note 16: List of subsidiaries
Note 17: Parent entity information
OTHER INFORMATION
Note 18: Contingent liabilities and assets
Note 19: Remuneration of auditors
Note 20: Commitments
Note 21: Related party transactions
Note 22: Events occurring after the reporting period
5 0 | C O N T E N T S O F T H E N O T E S T O T H E F I N A N C I A L S T A T E M E N T S
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
BASIS OF PREPARATION
This section of the financial report sets out the Group’s (being Liontown Resources Limited and its controlled entities)
accounting policies that relate to the Consolidated Financial Statements as a whole. Where an accounting policy is specific
to one Note, the policy is described in the Note to which it relates.
The Notes include information which is required to understand the Financial Statements and is material and relevant to the
operations and the financial position and performance of the Group.
Information is considered relevant and material if:
•
•
•
•
The amount is significant due to its size or nature
The amount is important in understanding the results of the Group
It helps to explain the impact of significant changes in the Group’s business
It relates to an aspect of the Group’s operations that is important to its future performance.
1.
CORPORATE INFORMATION
The consolidated financial report of Liontown Resources Limited for the year ended 30 June 2020 was authorised for issue
on 16 September 2020.
Liontown Resources Limited (the ‘Company’ or ‘Liontown’) is a for-profit company limited by shares, whose shares are
publicly traded on the Australian Securities Exchange. The Company and the majority of its subsidiaries were incorporated
and domiciled in Australia. Refer to note 16 for details of subsidiaries and country of incorporation. The registered office
and principal place of business of the Company is Level 2, 1292 Hay Street, West Perth, WA 6005.
The nature of the operations and principal activities are disclosed in the Directors’ Report.
2.
REPORTING ENTITY
The Financial Statements are for the Group consisting of Liontown Resources Limited and its subsidiaries. A list of the
Group’s subsidiaries is provided at Note 16.
3.
BASIS OF PREPARATION
These general purpose Financial Statements have been prepared in accordance with Australian Accounting Standards,
which include Australian equivalents to International Financial Reporting Standards (‘AIFRS’). Compliance with AIFRS
ensures that the financial report, comprising the financial statements and notes thereto, complies with International Financial
Reporting Standards (‘IFRS’).
These Financial Statements have been prepared under the historical cost convention except where certain financial assets
and liabilities are required to be measured at fair value.
(a) Basis of consolidation
Subsidiaries are all entities over which the Group has control. The Group controls an entity when the Group is exposed to,
or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its
power to direct the activities of the entity. Subsidiaries are fully consolidated from the date on which control is transferred
to the Group. They are deconsolidated from the date that control ceases.
The acquisition method of accounting is used to account for business combinations by the Group.
Intercompany transactions, balances and unrealised gains on transactions between Group companies are eliminated.
Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the transferred asset.
Accounting policies of the subsidiaries have been changed where necessary to ensure consistency with the policies adopted
by the Group.
Any non-controlling interests in the results and equity of subsidiaries are shown separately in the consolidated statement of
profit or loss and other comprehensive income, consolidated statement of changes in equity and consolidated statement of
financial position respectively.
(b) Significant accounting judgements and key estimates
The preparation of a financial report requires management to make judgements, estimates and assumptions that affect the
application of policies and reported amounts of assets and liabilities, income and expenses.
The estimates and associated assumptions are based on historical experience and various other factors that are believed
to be reasonable under the circumstances, the results of which form the basis of making the judgements about carrying
values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these
estimates.
5 1 | N O T E S T O T H E C O N S O L I D A T E D F I N A N C I A L S T A T E M E N T S
Key estimates and assumptions may have a significant risk of causing a material adjustment to the carrying amounts of
certain assets and liabilities within the next annual reporting period.
Specific key estimates and assumptions are described in the relevant notes.
In preparing this report, the significant judgements made by management in applying the Group’s accounting policies and
the key sources of estimation uncertainty were the same as those that applied to the financial report for the year ended 30
June 2019, except for the impact of the new Standards and Interpretations effective 1 July 2019 as disclosed in note 3(e).
(c) Functional currency translation
The functional currency of the Company is Australian dollars and the functional currency of the controlled entity based in
Tanzania is United States dollars (US$). The presentation currency of the Group is Australian dollars.
Transactions in foreign currencies are translated to the Group’s functional currency at exchange rates at the date of the
transactions. Monetary assets and liabilities denominated in foreign currencies are retranslated at the functional currency
spot rates of exchange at the reporting date. Foreign currency differences arising on retranslation are recognised in profit or
loss as incurred. Non-monetary items that are measured in terms of historical cost in a foreign currency are translated at
exchange rates at the date of the initial transaction.
Foreign currency differences are recognised in other comprehensive income and presented in foreign currency translation
reserve (translation reserve) in equity upon translation to presentation currency.
On disposal of a foreign entity, the deferred cumulative amount recognised in equity relating to that particular foreign
operation is recognised in profit or loss.
(d) Goods and Services Tax (‘GST’)
Revenue, expenses and assets are recognised net of the amount of goods and services tax (‘GST’), except where the
amount of GST incurred is not recoverable from the taxation authority. In these circumstances, the GST is recognised as
part of the cost of acquisition of the asset or as part of the expense.
Receivables and payables are stated with the amount of GST included. The net amount of GST recoverable from, or payable
to, the Australia Taxation Office (‘ATO’) is included as a current asset or liability in the consolidated statement of financial
position.
Cash flows are included in the consolidated statement of cash flows on a gross basis. The GST components of cash flows
arising from investing and financing activities which are recoverable from, or payable to, the ATO are classified as operating
cash flows.
(e) Adoption of new and revised Accounting Standards
In the year ended 30 June 2020, the Directors have reviewed all of the new and revised Standards and Interpretations
issued by the AASB that are relevant to the Company and effective for the current annual reporting period. As a result of
this review, the Group has applied AASB 16 Leases.
AASB 16 Leases
The Group has applied AASB 16 from 1 July 2019 using the modified retrospective approach, with no restatement of
comparative information. The impact on the accounting policies, financial performance and financial position of the Group
from the adoption of AASB 16 is detailed below.
AASB 16 Leases supersedes AASB 117 Leases and related Interpretations. The Group has adopted AASB 16 from 1 July
2019 which has resulted in changes in the classification, measurement and recognition of leases. The changes result in
almost all leases where the Group is the lessee being recognised on the consolidated statement of financial position and
removes the former distinction between ‘operating’ and ‘finance’ leases. The new standard requires recognition of a right-
of-use asset (the leased item) and a financial liability (to pay rentals). The exceptions are short-term leases and leases of
low value assets.
The Group has adopted AASB 16 using the modified retrospective approach under which the reclassifications and the
adjustments arising from the new leasing rules are recognised in the opening consolidated statement of financial position
on 1 July 2019. Under this approach, there is no initial impact on accumulated losses, and comparatives have not been
restated.
The Group from time to time leases various premises, plant and equipment. Prior to 1 July 2019, leases were classified as
operating leases. Payments made under operating leases were charged to the consolidated statement of profit or loss and
other comprehensive income on a straight-line basis over the period of the lease.
From 1 July 2019, where the Company is a lessee, the Group recognises a right-of-use asset and a corresponding liability
at the date which the lease asset is available for use by the Group (i.e. commencement date). Each lease payment is
allocated between the liability and the finance cost. The finance cost is charged to the consolidated statement of profit or
loss and other comprehensive income over the lease period so as to produce a consistent period rate of interest on the
remaining balance of the liability for each period.
5 2 | N O T E S T O T H E C O N S O L I D A T E D F I N A N C I A L S T A T E M E N T S
The lease liability is initially measured at the present value of the lease payments that are not paid at commencement date,
discounted using the rate implied in the lease. If this rate is not readily determinable, the Group uses its incremental
borrowing rate.
Lease payments included in the initial measurement if the lease liability consist of:
•
•
•
•
•
Fixed lease payments less any lease incentives receivable;
Variable lease payments that depend on an index or rate, initially measured using the index or rate at commencement
date;
Any amounts expected to be payable by the Group under residual value guarantees;
The exercise price of extension options, if the Group is reasonably certain to exercise the options; and
Termination penalties of the lease term reflects the exercise of an option to terminate the lease.
Extension options are included in a number of property leases across the Group. In determining the lease term, management
considers all facts and circumstances that create an economic incentive to exercise an extension option. Extension options
are only included in the lease term if, at commencement date, it is reasonably certain that the options will be exercised.
Subsequent to initial recognition, the lease liability is measured by increasing the carrying amount to reflect interest on the
lease liability (using the effective interest method) and by reducing the carrying amount to reflect the lease payments made.
The lease liability is remeasured (with a corresponding adjustment to the right-of-use asset) whenever there is a change in
the lease term (including assessments relating to extension and termination options), lease payments due to changes in an
index or rate, or expected payments under guaranteed residual values.
Right-of-use assets comprise the initial measurement of the corresponding lease liability, lease payments made at or before
commencement date, less any lease incentives received and any initial direct costs. These right-of-use assets are
subsequently measured at cost less accumulated depreciation and impairment losses.
Where the terms of a lease require the Group to restore the underlying asset, or the Group has an obligation to dismantle
and remove a leased asset, a provision is recognised and measured in accordance with AASB 137. To the extent that the
costs relate to a right-of-use asset, the costs are included in the related right-of-use asset.
Right-of-use assets are depreciated on a straight-line basis over the term of the lease (or the useful life of the leased asset
if this is shorter). Depreciation starts on commencement date of the lease.
Where leases have a term of less than 12 months or relate to low value assets, the Group has applied the optional
exemptions to not capitalise these leases and instead account for the lease expense on a straight-line basis over the lease
term.
Impact on adoption of AASB 16
On adoption of AASB 16, other than short-term leases and leases of low-value assets, the Group had no lease liabilities
and right-of-use assets that required recognition under the principles of AASB 16.
Leases entered into during the period that did not qualify for exemptions were measured at the present value lease
payments, discounted using the lessee's incremental borrowing rate.
In the consolidated statement of cash flows, the Group has recognised cash payments for the principal portion of the lease
liability within financing activities, cash payments for the interest portion of the lease liability as interest paid within operating
activities and short-term lease payments and payments for lease of low-value assets within operating activities.
The adoption of AASB 16 resulted in no initial recognition of right-of-use assets and lease liabilities in respect of all operating
leases as the only leases in existence qualified for the exemptions of short-term leases and leases of low-value assets.
The net impact on accumulated losses on 1 July 2019 was $nil.
Other than AASB 16, there is no material impact of the new and revised Standards and Interpretations on the Group.
Standards and Interpretations in issue not yet adopted
The Directors have also reviewed all Standards and Interpretations in issue not yet adopted for the period ended 30 June
2020. As a result of this review the Directors have determined that there is no material impact of the Standards and
Interpretations in issue not yet adopted by the Company.
(f) Going concern
The financial report has been prepared on a going concern basis, which contemplates continuity of normal business activities
and the realisation of assets and settlements of liabilities in the ordinary course of business.
5 3 | N O T E S T O T H E C O N S O L I D A T E D F I N A N C I A L S T A T E M E N T S
PERFORMANCE FOR THE YEAR
This section provides additional information about those individual line items in the consolidated statement of profit or loss
and other comprehensive income that the Directors consider most relevant in the context of the operations of the entity.
4.
SEGMENT REPORTING
The Group has identified its operating segments based on internal reports that are reviewed and used by the Board of
Directors in assessing performance and in determining the allocation of resources. The operating segments are identified
by management based on the allocation of costs; whether they are corporate related costs or exploration and evaluation
costs. Results of both segments are reported to the Board of Directors at each Board meeting.
Exploration and
Evaluation
Corporate
Total
Other income
Proceeds on the sale of
exploration tenement
Exploration and evaluation
expenses
Corporate and
administration expenses
Share based payments
Net fair value loss on fair
value of equity instruments
designated at FVTPL
Impairment on loan
Net financing income
Loss from continuing
operations before
income tax
Segment assets
Unallocated assets
Total assets
Segment liabilities
Total liabilities
2020
$
-
1,500,000
2019
$
2020
$
2019
$
2020
$
2019
$
-
-
538
1,450
538
1,450
-
-
-
-
1,500,000
-
(11,247,727)
(10,013,181)
(1,805,018)
(1,380,033)
(2,023,817)
(563,788)
(1,805,018)
(1,380,033)
(2,023,817)
(563,788)
-
-
99,250
(139,012)
(30,912)
45,545
-
-
99,250
(139,012)
(30,912)
45,545
(11,247,727)
(10,013,181)
-
-
-
-
-
-
-
-
-
(9,747,727)
(10,013,181)
(3,085,263)
(2,710,534)
(12,832,990)
(12,723,715)
58,836
41,855
1,859,632
65,292
412,856
3,251,605
408,050
643,561
1,918,468
5,422,112
7,340,580
107,147
3,769,931
3,877,078
820,906
820,906
3,895,166
3,895,166
5. OTHER INCOME AND EXPENSES
(a) Proceeds from the sale of exploration and evaluation tenements
Bynoe Lithium Project
2020
$
1,500,000
2019
$
-
During the year, the conditions were satisfied for the $1.5 million contingent consideration payment pursuant to the sale
agreement entered into with Core Lithium Limited in 2017 for the sale of the Bynoe Lithium Project.
Accounting Policy
Other income is recognised when it is received or when the right to receive payment is established.
5 4 | N O T E S T O T H E C O N S O L I D A T E D F I N A N C I A L S T A T E M E N T S
(b) Corporate and administration expenses
Depreciation and amortisation
Insurance
Legal fees
Office costs
Personnel expenses (5(c))
Promotions and Investor relations
Conferences and travel
Regulatory and compliance
Fixed assets written off
Other
(c) Personnel expenses
Directors’ fees, employee wages and salaries
Other associated personnel expenses
Leave entitlements
(d) Exploration and evaluation expenditure
Exploration Expenditure
Toolebuc, QLD
Kathleen Valley, WA
Buldania, WA
Moora
Other
Scoping and Pre-Feasibility Studies(1)
Kathleen Valley, WA – Scoping Study
Kathleen Valley, WA – Pre-feasibility Studies
Royalty acquisition
Acquisition of revenue and production royalties
2020
$
60,861
43,514
36,166
162,062
736,132
166,199
106,956
233,063
19,300
240,765
1,805,018
2020
$
549,442
117,432
69,258
736,132
2019
$
11,999
41,659
61,134
160,479
815,585
384,494
198,916
195,517
4,640
149,394
2,023,817
2019
$
673,261
56,975
85,349
815,585
2020
$
2019
$
206,497
6,407,768
1,029,260
308,306
-
7,951,831
-
3,195,896
3,195,896
100,000
100,000
11,247,727
116,303
4,207,644
2,949,668
17,857
3,785
7,295,257
374,998
342,926
717,924
2,000,000
2,000,000
10,013,181
(1) During the reporting period the Company completed an initial Pre-feasibility Study and commenced an updated Pre-feasibility Study at
the Kathleen Valley Lithium Project.
Accounting Policy
Costs incurred in the exploration and evaluation stages of specific areas are expensed in the consolidated statement of
profit or loss and other comprehensive income as incurred. All exploration and evaluation expenditure, including general
permit activity, geological and geophysical costs, project generation and drilling costs, are expensed as incurred. In addition,
costs associated with acquiring interests in new exploration licences and study related costs are also expensed. Once the
technical feasibility and commercial viability of extracting a mineral resource is demonstrable in respect to an area of interest,
development expenditure is capitalised to the consolidated statement of financial position.
5 5 | N O T E S T O T H E C O N S O L I D A TE D F I N A N C I A L S T A T E M E N T S
(e) Net financing income
Interest income
Interest expense
Accounting Policy
2020
$
107,838
(8,588)
99,250
2019
$
45,545
-
45,545
Net financing costs comprise interest receivable on funds invested and the finance costs associated with the lease liabilities
for right-of-use assets.
Interest income is recognised in the consolidated statement of profit or loss and other comprehensive income as it accrues,
using the effective interest method. The interest expense component of lease liabilities is recognised in the consolidated
statement of profit and loss and comprehensive income using the effective interest method.
6.
INCOME TAX
Numerical reconciliation between tax expense and pre-tax net loss:
Loss before tax
Income tax benefit using the domestic corporation tax rate of 27.5%
Decrease in income tax benefit due to:
Non-deductible expenses
Non-assessable income
Deferred tax assets and liabilities not recognised
Junior Mineral Exploration Incentive
Effect of different tax rates of foreign subsidiaries operating other
jurisdictions
Income tax expense on loss before tax
2020
$
2019
$
(12,832,990)
(3,529,072)
(12,723,715)
(3,499,022)
380,942
(71,188)
1,719,318
1,500,000
-
-
759,320
-
1,459,067
1,127,500
153,135
-
Income tax in the consolidated statement of profit and loss and comprehensive income comprises current and deferred tax.
Income tax is recognised in the consolidated statement of profit or loss and other comprehensive income except to the
extent that it relates to items recognised directly in equity, in which case it is recognised in equity.
Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted or substantively enacted
at the balance date, and any adjustment to tax payable in respect of previous years.
Deferred tax is provided on all temporary differences at balance date between the tax bases of assets and liabilities and
their carrying amounts for financial reporting purposes. The amount of deferred tax provided is based on the expected
manner of realisation or settlement of the carrying amount of assets and liabilities, using tax rates enacted or substantively
enacted at the balance date.
Unrecognised deferred tax assets and liabilities for the Group are attributable to the following:
Assets
Revenue losses available to offset against future taxable income
Capital Losses available to offset against future taxable income
Other deferred tax assets
Liabilities
Other deferred tax liabilities
2020
$
6,438,562
-
347,040
6,785,602
(175,934)
(175,934)
2019
$
4,670,588
81,529
(93,541)
4,658,576
(66,920)
(66,920)
The unrecognised benefit from temporary differences on capital items amounts to $312,282 (2019: $185,811).
Deferred tax liabilities have not been recognised in respect of these taxable temporary differences as the entity is able to
control the timing of the reversal of the temporary difference and it is probable that the temporary difference will not reverse
in the foreseeable future.
5 6 | N O T E S T O T H E C O N S O L I D A T E D F I N A N C I A L S T A T E M E N T S
A deferred tax asset is recognised only to the extent that it is probable that future taxable profits will be available against
which the asset can be utilised. Deferred tax assets are reduced to the extent that it is no longer probable that the related
tax benefit will be realised.
Liontown and its 100% owned Australian resident subsidiaries have implemented the tax consolidation legislation. Current
and deferred amounts are accounted for in each individual entity as if each entity continued to act as a taxpayer on its own.
The Company recognises its own current and deferred tax amounts and those current tax liabilities, current tax assets and
deferred tax assets arising from unused tax credits and unused tax losses which it has assumed from its controlled entities
within the tax consolidated Group.
7.
LOSS PER SHARE
The calculation of basic loss per share at 30 June 2020 is based on the loss attributable to ordinary shareholders of the
parent entity and a weighted average number of ordinary shares outstanding during the year ended 30 June 2020.
The weighted average number of ordinary shares outstanding during the financial years comprised the following:
Loss attributable to ordinary shareholders for basic earnings
$12,832,990
$12,723,715
2020
2019
Weighted average number of ordinary shares on issue at the end of the year
1,675,915,484
1,239,424,852
Diluted loss per share has not been shown as the impact from options and performance rights is anti-dilutive.
Accounting Policy
Basic earnings/loss per share is calculated as net profit/loss attributable to members of the parent, adjusted to exclude any
costs of servicing equity (other than dividends) and preference share dividends, divided by the weighted average number of
ordinary shares, adjusted for any bonus element.
Diluted earnings/loss per share is calculated as net profit/loss attributable to members of the parent, adjusted for:
•
•
•
costs of servicing equity (other than dividends) and preference share 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
element.
SHARE-BASED PAYMENTS
This section of the Notes includes information that must be disclosed to comply with accounting standards and other
pronouncements relating to the provision of services and remuneration of employees and consultants of the Group, but that
is not immediately related to individual line items in the Financial Statements.
8.
SHARE BASED PAYMENTS
Employee Securities Incentive Scheme (“EIS”)
The Company provides benefits to employees (including Directors) in the form of share-based payment transactions,
whereby employees render services in exchange for shares or rights over shares (‘equity-settled transactions’).
The Company currently provides benefits under an Employee Securities Incentive Scheme (“Scheme”), as approved by
Shareholders at the 2018 AGM.
The total expenditure recognised in the consolidated statement of profit and loss and comprehensive income is $1,380,033
(2019: $563,788).
Under the terms of the Scheme, the Board may offer equity securities (i.e. options, performance or service rights) at no
consideration to full-time or part-time employees (including persons engaged under a consultancy agreement) and Executive
and Non-Executive Directors.
Options issued under Employee Securities Incentive Scheme
Each option entitles the holder, on exercise, to one ordinary fully paid share in the Company. There is no issue price for the
options. The exercise price for the options is such price as determined by the Board. An option may only be exercised after
that option has vested and any other conditions imposed by the Board on exercise are satisfied. The Board may determine
the vesting period, if any.
There are no voting or dividend rights attached to the options. There are no voting rights attached to the unissued ordinary
shares. Voting rights will be attached to the unissued ordinary shares when the options have been exercised.
5 7 | N O T E S T O T H E C O N S O L I D A T E D F I N A N C I A L S T A T E M E N T S
The following EIS unlisted options were in place at the end of the year:
Series
Number
Grant date
Expiry date
Exercise
price
$
Fair value at
grant date
$
Vesting date
OP5
OP5
OP6
OP6
O13
O13
O15
O15
O15
O15
O17
O17
O17
O18
O18
1,800,000
4,000,000
2,700,000
12,000,000
10,000,000
6,000,000
5,650,000
1,000,000
1,000,000
14,000,000
3,333,333
3,333,333
3,333,334
1,000,000
1,000,000
8/04/2016
24/05/2016
10/10/2017
28/11/2017
28/11/2018
20/12/2018
27/09/2019
6/11/2019
6/11/2019
27/11/2019
16/03/2020
16/03/2020
16/03/2020
5/06/2020
5/06/2020
31/03/2021
31/03/2021
31/10/2022
31/10/2022
28/11/2023
28/11/2023
28/11/2022
28/11/2022
28/11/2022
28/11/2022
16/03/2023
16/03/2023
16/03/2023
4/06/2023
4/06/2023
0.035
0.035
0.02
0.02
0.035
0.035
0.15
0.15
0.15
0.15
0.1122
0.1122
0.1122
0.15
0.15
0.016
0.015
0.006
0.022
0.019
0.018
0.061
0.059
0.059
0.046
0.050
0.050
0.050
0.069
0.069
8/04/2016
24/05/2016
10/10/2017
28/11/2017
28/11/2018
20/12/2018
27/09/2020
6/11/2020
6/11/2021
27/11/2019
16/03/2020
16/03/2021
16/03/2022
4/06/2021
4/06/2022
The number and weighted average exercise prices of EIS share options under the Scheme is as follows:
Weighted
average
exercise
price
2020
$
Number of
options
2020
Weighted
average
exercise
price
2019
$
Number of
options
2019
0.030
0.139
0.031
-
0.082
0.066
57,500,000
33,650,000
(21,000,000)
-
70,150,000
53,833,333
0.026
0.035
0.035
0.038
0.030
0.030
33,750,000
29,250,000
(4,500,000)
(1,000,000)
57,500,000
55,000,000
Outstanding at beginning of the year
Granted during the period
Exercised during the period
Lapsed/expired during the period
Outstanding at the end of the year
Exercisable at the end of the year
The weighted average contractual life remaining as at 30 June 2020 is 2.55 years (2019: 3.33 years).
The weighted average fair value of options granted during the year was $0.052 (2019: $0.019).
Non-market performance conditions are not taken into account in the grant date fair value measurement of the services
received.
The following EIS share options were exercised during the year:
Series
Exercised
2020
Exercise date
OP5
OP5
OP6
OP7
OP7
OP8
O13
O13
O13
O13
Number
1,500,000
2,000,000
4,000,000
2,500,000
2,500,000
750,000
9/07/2019
18/05/2020
18/05/2020
9/07/2019
5/12/2019
9/07/2019
1,750,000
2,000,000
4,000,000
9/07/2019
5/12/2019
18/05/2020
Share price
at exercise
date
$
Exercised
2019
Exercise date
Number
Share price
at exercise
date
$
0.105
0.105
0.105
0.105
0.082
0.105
0.105
0.082
0.105
4,500,000
11/06/2019
0.10
5 8 | N O T E S T O T H E C O N S O L I D A T E D F I N A N C I A L S T A T E M E N T S
The fair value of the EIS options is estimated at the grant date using a Black Scholes option-pricing model taking into account
the terms and conditions upon which the options were granted. Refer to the table below for weighted average inputs to the
Black Scholes option-pricing model:
Share price at grant date (weighted average)
Exercise price (weighted average)
Expected volatility (weighted average)
Expected life (weighted average)
Vesting period (weighted average)
Expected dividends
Risk-free interest rate (weighted average)
2020
$0.088
$0.139
112%
3
0.64
Nil
0.61%
2019
$0.026
$0.035
100%
4.93
-
Nil
2.06%
Refer to the table below for inputs to the Black Scholes option-pricing model for EIS options granted during the year:
Series
Grant Date
Dividend yield (%)
Expected volatility (%)
Risk-free interest rate (%)
Expected life of option (years)
Exercise price (cents)
Grant date share price
O15
O15
O15
O17
O18
27/09/2019
6/11/2019
27/11/2019
16/03/2020
5/06/2020
-
-
-
-
-
114%
0.70%
3
0.15
0.098
112%
0.88%
3
0.15
0.098
111%
0.69%
3
0.15
0.082
115%
0.45%
3
0.1122
0.080
90%
0.28%
3
0.15
0.130
Service Rights issued under Employee Securities Incentive Scheme
On 6 May 2020, 510,093 service rights were granted to certain employees in lieu of payment of cash salary or fees otherwise
payable. The service rights have an expiry date of 30 June 2022, vest at the end of the relevant quarter and have a nil
exercise price. The fair value of the service rights granted was determined using the share price at grant date of $0.12.
On 30 June 2020, 1,251,329 service rights were granted to Directors in lieu of payment of cash salary or fees otherwise
payable. The service rights have an expiry date of 30 June 2022, vest immediately and have a nil exercise price. The fair
value of the service rights granted was determined using the share price at grant date of $0.105.
There are no voting or dividend rights attached to the service rights. There are no voting rights attached to the unissued
ordinary shares. Voting rights will be attached to the unissued ordinary shares when the service rights have been exercised.
Other Share Based Payments (“Non-EIS”)
Options
In September 2019 the Company issued 400,000 unlisted share options to a consultant of the Company as consideration
for work performed.
Each option entitles the holder, on exercise, to one ordinary fully paid share in the Company. There is no issue price for the
options. The exercise price for the options is determined by the Board. An option may only be exercised after that option
has vested and any other conditions imposed by the Board on exercise are satisfied. The Board may determine the vesting
period, if any.
There are no voting or dividend rights attached to the options. There are no voting rights attached to the unissued ordinary
shares. Voting rights will be attached to the unissued ordinary shares when the options have been exercised.
The following Non-EIS unlisted options were in place at the end of the year:
Series
Number
Grant date
Expiry date
Exercise
price
$
Fair value at
grant date
$
Vesting date
O14
O16
7,500,000
400,000
28/03/2019
27/09/2019
28/03/2022
28/11/2022
0.035
0.150
0.015
0.061
28/03/2019
27/09/2020
5 9 | N O T E S T O T H E C O N S O L I D A T E D F I N A N C I A L S T A T E M E N T S
The number and weighted average exercise prices of Non-EIS options is as follows:
Outstanding at beginning of the year
Granted during the period
Exercised during the period
Outstanding at the end of the year
Exercisable at the end of the year
Weighted
average
exercise
price
2020
$
Number of
options
2020
Weighted
average
exercise
price
2019
$
Number of
options
2019
0.035
0.150
0.035
0.041
0.035
14,900,000
400,000
(7,400,000)
7,900,000
7,500,000
-
0.035
0.035
0.035
0.035
-
15,000,000
(100,000)
14,900,000
14,900,000
The weighted average contractual life remaining as at 30 June 2020 is 1.78 years (2019: 2.75 years).
Non-market performance conditions are not taken into account in the grant date fair value measurement of the services
received.
The following Non-EIS share options were exercised during the year:
Series
Exercised
2020
Exercise date
O14
O14
O14
Number
100,000
7,300,000
Share price
at exercise
date
$
Exercised
2019
Exercise date
Number
Share price
at exercise
date
$
9/08/2019
18/05/2020
0.115
0.105
100,000
24/05/2019
0.092
The fair value of the Non-EIS options is estimated at the grant date using a Black Scholes option-pricing model taking into
account the terms and conditions upon which the options were granted. Refer to the table below for weighted average
inputs to the Black Scholes option-pricing model:
Share price at grant date (weighted average)
Exercise price (weighted average)
Expected volatility (weighted average)
Expected life (weighted average)
Vesting period (weighted average)
Expected dividends
Risk-free interest rate (weighted average)
2020
$0.098
$0.150
114%
3
1
Nil
0.70%
2019
$0.019
$0.035
100%
3
-
Nil
1.53%
Refer to the table below for inputs to the Black Scholes option-pricing model for Non-EIS options granted during the year:
Series
Grant Date
Dividend yield (%)
Expected volatility (%)
Risk-free interest rate (%)
Expected life of option (years)
Exercise price (cents)
Grant date share price
Performance Rights
O16
27/09/2019
-
114%
0.70%
3
0.15
0.098
No performance rights have been issued during the year. As at 30 June 2020 there were 1,000,000 performance rights
outstanding. These performance rights were issued on 14 September 2018, are subject to the consultant meeting certain
objectives, have an expiry date of 13 September 2020 and a nil exercise price. The fair value of the performance rights
granted was determined using the share price at grant date of $0.027.
The performance rights subsequently lapsed on 13 September 2020.
Performance rights contain non-market performance conditions which were not taken into accounting the grant date fair
value measurement of the services received.
6 0 | N O T E S T O T H E C O N S O L I D A T E D F I N A N C I A L S T A T E M E N T S
Accounting Policy
The cost of equity-settled transactions with employees and Directors is measured by reference to the fair value at the date
at which they are 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 the Company (‘market conditions’). The cost of 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)
(ii)
the extent to which the vesting period has expired; and
the number of awards that, in the opinion of the Directors, will ultimately vest. This opinion is formed based on the
best available information at balance date. No adjustment is made for the likelihood of market performance conditions
being met as the effect of these conditions is included in the determination of fair value at grant date.
No expense is recognised for awards that do not ultimately 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 modification.
Where an equity-settled award is cancelled, it is treated as if it had vested on the date of 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 dilutive effect, if any, of outstanding options and rights is reflected as additional share dilution in the computation of
earnings per share.
Significant accounting judgements and key estimates
The Group measures the cost of equity-settled share-based payments at fair value at the grant date using a Black Scholes
option-pricing model or another appropriate valuation methodology taking into account the terms and conditions upon which
the instruments were granted and the assumptions outlined in this Note.
The expected life of the share-based payments is based on historical data and is not necessarily indicative of exercise
patterns that may occur. The expected volatility reflects the assumption that the historical volatility is indicative of future
trends, which may also not necessarily be the actual outcome.
The accounting estimates and assumptions relating to equity-settled share-based payments would have no impact on the
carrying amounts of assets and liabilities within the next annual reporting period but may impact profit or loss and equity.
ASSETS
This section provides additional information about those individual line items in the consolidated statement of financial
position that the Directors consider most relevant in the context of the operations of the entity.
9.
CASH AND CASH EQUIVALENTS
Cash at bank
Petty cash
2020
$
5,256,820
1,029
5,257,849
2019
$
3,362,421
848
3,363,269
6 1 | N O T E S T O T H E C O N S O L I D A T E D F I N A N C I A L S T A T E M E N T S
Reconciliation of loss after income tax to net cash flows from operating activities:
Loss for the period
Depreciation and amortisation
Bad debts written off
Foreign exchange (gain)/losses
Share-based payments
Net fair value loss on fair value of equity instruments designated as
FVTPL
Fixed assets written off
Impairment of loan
Changes in operating assets and liabilities:
Increase in trade and other receivables
Increase in trade and other payables
Decrease in other financial assets
Increase in provisions
Net operating cash flows
Non-cash investing and financing activities
During the year the Company made additions of $146,270 to right-of-use assets.
Changes in liabilities arising from financing activities
2020
$
(12,832,990)
60,861
-
100
1,380,033
-
19,300
-
(11,372,696)
(1,358,085)
(3,039,971)
-
14,475
(15,756,277)
2019
$
(12,723,715)
12,215
2,862
(36,633)
563,788
139,012
4,640
30,912
(12,006,919)
(185,390)
3,142,516
755,505
92,758
(8,201,530)
Balance at 1 July 2018
Capital raising funds received (held in trust)
Balance at 30 June 2019
Issue of shares
Acquisition of leases
Net cash used in financing activities
Balance at 30 June 2020
Accounting Policy
Lease Liability
$
-
-
-
-
146,270
(28,957)
117,313
Other
payables
$
-
163,500
163,500
(163,500)
-
-
Total
$
-
163,500
163,500
(163,500)
146,270
(28,957)
-
117,313
Cash and cash equivalents comprise cash balances and term deposits with an original maturity of three months or less,
which are subject to an insignificant risk of changes in value. The carrying value of cash and cash equivalents is considered
to approximate fair value.
10. TRADE AND OTHER RECEIVABLES
Current
Trade and other receivables
Prepayments
2020
$
1,686,969
86,101
1,773,070
2019
$
358,274
56,711
414,985
Other receivables include an amount receivable of $1.5 million from Core Lithium Limited pursuant to the contingent
conditions met in relation to the sale of the Bynoe Lithium Project in November 2017. This amount was subsequently
received in July 2020. There was no expected credit loss at balance date.
Accounting Policy
Trade and other receivables are initially recognised at fair value and subsequently at the amounts considered recoverable.
Trade receivables are generally due for settlement within periods ranging from 30 to 60 days.
6 2 | N O T E S T O T H E C O N S O L I D A T E D F I N A N C I A L S T A T E M E N T S
EQUITY AND LIABILITIES
11. TRADE AND OTHER PAYABLES
Trade payables
Accrued expenses
Acquisition of royalty payable(1)
Share application monies held on trust
Other payables
2020
$
241,958
290,869
-
-
20,274
553,101
2019
$
1,423,444
384,661
1,750,000
163,750
37,294
3,759,149
(1) Represents the prior year balance of consideration payable to acquire the Buldania revenue and production royalties.
Accounting Policy
Trade and other payables are initially recognised at fair value and subsequently measured at amortised cost. Trade and
other payables are presented as current liabilities unless payment is not due within 12 months.
12. EMPLOYEE BENEFITS
Current
Annual leave
Provision for long service leave
Other accrued employee entitlements
Non-Current
Provision for long service leave
Accounting Policy
2020
$
56,780
52,513
39,687
148,980
1,512
1,512
2019
$
62,922
73,095
-
136,017
-
-
Liabilities for employee benefits for annual leave and other current entitlements represent present obligations resulting from
employees' services provided to reporting date, calculated at undiscounted amounts based on remuneration wage and
salary rates that the consolidated entity expects to pay as at reporting date, including related on-costs.
The Group’s obligation in respect of long-term employee benefits such as long service leave is the amount of future benefit
that employees have earned in return for their service in the current and prior periods; that benefit is discounted to determine
its present value using corresponding government bond yields as a discount rate.
Obligations for contributions to defined contribution pension plans are recognised as an expense in the consolidated
statement of profit or loss and other comprehensive income as incurred.
13. CAPITAL AND CAPITAL MANAGEMENT
Ordinary shares on issue:
On issue at the beginning of the year
Rights issues and placements (1)
Issue of shares for unlisted options
Issue of shares to acquire the Killaloe Project
Issue of shares to acquire Buldania mining
lease lithium rights
Share issue costs
Movement during the year
On issue at the end of the year
2020
2019
No.
$
No.
$
1,532,885,201
150,000,000
28,400,000
-
-
-
178,400,000
1,711,285,201
45,228,551
18,000,000
900,250
-
-
(909,531)
17,990,719
63,219,270
1,103,987,460
394,297,741
4,600,000
20,000,000
10,000,000
-
428,897,741
1,532,885,201
37,199,397
7,885,955
161,000
520,000
240,000
(777,801)
8,029,154
45,228,551
(1) In September 2019, the Company completed a placement to raise $18,000,000 by issuing 150,000,000 fully paid ordinary shares at an
issue price of $0.12 per share.
6 3 | N O T E S T O T H E C O N S O L I D A T E D F I N A N C I A L S T A T E M E N T S
Accounting Policy
Issued share capital is recognised at the fair value of the consideration received by the Company. Any transaction costs
arising on the issue of ordinary shares are recognised, net of tax, directly in equity as a reduction of the share proceeds
received.
Ordinary shares entitle the holder to participate in dividends in proportion to the number of and amounts paid on the shares
held.
On a show of hands, every holder of ordinary shares present at a meeting in person or by proxy is entitled to one vote and
upon a poll, each share is entitled to one vote.
The Group manages its capital to ensure that it will be able to continue as a going concern while maximising the return to
shareholders.
14. RESERVES
Nature and purpose of reserves:
Share-based payments
The share-based payments reserve is used to record the value of equity benefits provided to employees and Directors as
part of their remuneration and other parties as part of their compensation for services. Refer to note 8 for further details of
share-based payment plans.
Foreign currency translation reserve
The foreign currency translation reserve is used to record the exchange differences arising from the translation of the
financial statements of foreign subsidiaries.
FINANCIAL INSTRUMENTS
15. FINANCIAL INSTRUMENTS
(a) Capital risk management
The capital structure of the Group consists of equity attributable to equity holders, comprising issued capital, reserves and
accumulated losses as disclosed in notes 13 and 14, and in the consolidated statement of financial position.
The Board reviews the capital structure on a regular basis and considers the cost of capital and the risks associated with
each class of capital. The Group will balance its overall capital structure through new share issues as well as the issue of
debt (where appropriate), if the need arises.
(b) Market risk
Market risk is the risk that changes in market prices such as foreign exchange rates, equity prices and interest rates will
affect the Group’s income or value of its holdings of financial instruments.
(c) Foreign exchange rate risk
The Group undertakes certain transactions denominated in foreign currencies, hence has exposure to exchange rate
fluctuations. The Group does not currently hedge this exposure. The Group currently has no significant exposure to foreign
exchange rates.
(d) Interest rate risk
Interest rate risk is the risk that changes in bank deposit rates affect the consolidated entity’s income and future cash flow
from interest income. The exposure to interest rate risk and the effective weighted average interest rate for classes of
financial assets and financial liabilities is set out below:
6 4 | N O T E S T O T H E C O N S O L I D A T E D F I N A N C I A L S T A T E M E N T S
Interest maturing in:
2020
<1 year
$
1-5 years
$
Floating
interest
$
Non-
interest
bearing
$
Total
$
Weighted
average
interest
rate
%
Financial assets
Bank balances
Trade and other
receivables
Financial assets
Financial liabilities
Trade and other payables
Lease liabilities
-
-
76,812
-
-
-
-
(43,076)
-
(74,237)
5,256,820
-
1,029
1,773,070
5,257,849
1,773,070
-
-
-
-
76,812
(553,101)
-
(553,101)
(117,313)
1.10
-
1.10
-
8.85
Interest maturing in:
2019
<1 year
$
1-5 years
$
Floating
interest
$
Non-
interest
bearing
$
Total
$
Financial assets
Bank balances
Trade and other receivables
Financial assets
Financial liabilities
Trade and other payables
-
-
54,400
- 3,362,420
-
-
-
-
849
414,981
-
3,363,269
414,981
54,400
-
-
-
(3,759,149)
(3,769,149)
Weighted
average
interest
rate
%
0.69
-
3.29
-
A change of 100 basis points in interest rates on bank balances and term deposits over the reporting period would have
increased/(decreased) the Group’s profit and loss by $97,597 (2019: $16,420).
(e) Credit risk
Credit risk is the risk of financial loss to the Group if a customer or counterparty to a financial instrument fails to meet its
contractual obligations. Other than the $1.5 million receivable from Core Lithium which was received in July 2020, the
consolidated entity’s exposure to credit risk is not significant and currently arises principally from sundry receivables which
represent an insignificant proportion of the Group’s activities and cash and cash equivalents.
The maximum exposure to credit risk, excluding the value of any collateral or other security, at balance date to recognised
financial assets is the carrying amount, net of any provision for doubtful debts, as disclosed in the notes to the financial
statements.
(f) Liquidity risk
Liquidity risk is the risk that the Group will not be able to meet its financial obligations as they fall due. The Board actively
monitors the Group’s ability to pay its debts as and when they fall due by regularly reviewing the current and forecast cash
position based on the expected future activities.
The Group has non-derivative financial liabilities which include trade and other payables of $553,101 (2019: $3,759,149) all
of which are due within 60 days and undiscounted lease liabilities of $129,572 (2019: nil).
(g) Net fair values of financial instruments
The carrying amount of all financial assets and liabilities approximate their net fair values.
GROUP COMPOSITION
This section of the Notes includes information that must be disclosed to comply with accounting standards and other
pronouncements relating to the structure of the Group, but that is not immediately related to individual line items in the
Financial Statements.
6 5 | N O T E S T O T H E C O N S O L I D A T E D F I N A N C I A L S T A T E M E N T S
16. LIST OF SUBSIDIARIES
Country of
incorporation
Ownership interest
Parent entity
Liontown Resources Limited
Subsidiaries
Liontown Resources (Tanzania) Limited
LRL (Aust) Pty Ltd
ERL (Aust) Pty Ltd
17. PARENT ENTITY INFORMATION
Australia
Tanzania
Australia
Australia
2020
%
100%
100%
100%
2019
%
100%
100%
100%
The financial information for the parent entity, Liontown Resources Limited, has been prepared on the same basis as the
consolidated financial statements, except as set out below.
Investments in subsidiaries, associates and joint venture entities
Investments in subsidiaries are accounted for at cost less impairment in the parent entity’s financial statements.
Statement of profit and loss and other comprehensive income
Loss for the year
Total comprehensive loss
Statement of financial position
Assets
Current assets
Non-current assets
Total assets
Liabilities
Current liabilities
Non-current liabilities
Total liabilities
Net assets
Equity
Share capital
Reserves
Accumulated losses
Total equity
2020
$
2019
$
(22,757,725)
(22,757,725)
(2,877,306)
(2,762,652)
7,030,919
309,662
7,340,581
3,778,250
8,266,849
12,045,099
519,583
75,750
595,333
1,912,877
-
1,912,877
6,745,248
10,132,222
63,219,270
2,157,428
(58,631,450)
6,745,248
45,228,551
1,206,000
(36,302,329)
10,132,222
OTHER INFORMATION
This section of the Notes includes other information that must be disclosed to comply with accounting standards and other
pronouncements, but that is not immediately related to individual line items in the Financial Statements.
18. CONTINGENT LIABILITIES AND ASSETS
For the year ended 30 June 2020, there are no contingent assets (30 June 2019: $1,500,000 relating to the contingent
payment from Core Lithium Ltd in relation to the sale of the Bynoe Lithium project in November 2017).
For the year ended 30 June 2020, there are no contingent liabilities (30 June 2019: nil).
6 6 | N O T E S T O T H E C O N S O L I D A T E D F I N A N C I A L S T A T E M E N T S
19. REMUNERATION OF AUDITORS
Audit and review services
HLB Mann Judd
20. COMMITMENTS
2020
$
30,300
2019
$
30,376
In order to maintain current rights of tenure to exploration tenements the Group, together with its joint venture partners, is
required to perform exploration work to meet the minimum expenditure requirements specified by various State
governments. These amounts are subject to negotiation when application for a lease application and renewal is made and
at other times. The approximate minimum level of expenditure to retain current tenements which are not provided for in the
consolidated financial statements are detailed below:
Within 1 year
1-5 years
>5 years
2020
$
939,556
2,224,228
3,398,381
6,562,165
2019
$
587,990
1,327,380
1,162,200
3,077,570
To the extent that expenditure commitments are not met, tenement areas may be reduced, and other arrangements made
in negotiation with the relevant state and territory government departments on renewal of tenements to defer expenditure
commitments or partially exempt the Company.
21. RELATED PARTY TRANSACTIONS
(a) Key management personnel
The following were key management personnel of the Group at any time during the reporting period and unless otherwise
indicated were key management personnel for the entire period:
Directors
•
•
•
•
•
T Goyder
D Richards
C Williams
A Cipriano
S Chadwick
Executives
•
•
•
A Smits (COO) (appointed 16 March 2020)
C Hasson (CFO) (appointed 4 June 2020)
R Hacker (CFO) (ceased 4 June 2020)
The key management personnel compensation is as follows:
Short-term employee benefits
Post-employment benefits
Share-based payments
2020
$
794,713
44,157
981,734
1,820,604
2019
$
516,490
44,296
388,423
949,209
(b) Loans made to key management personnel and related parties
No loans were made to key management personnel and their related parties.
(c) Other transactions with key management personnel
A number of key management personnel, or their related parties, hold positions in other entities that result in them having
control or significant influence over the financial or operating policies of those entities.
A number of these entities transacted with the Company or its subsidiaries in the reporting period. The terms and conditions
of the transactions with key management personnel and their related parties were no more favourable than those available,
or which might reasonably be expected to be available, on similar transactions to non-key management personnel related
entities on an arm’s length basis.
6 7 | N O T E S T O T H E C O N S O L I D A T E D F I N A N C I A L S T A T E M E N T S
The aggregate amounts recognised during the year relating to key management personnel and their related parties were as
follows:
Corporate service charge and provision of KMP services(1)
Technical consultancy services of KMP(2)
Database management and field services(3)
Accounting services (4)
2020
$
241,845
47,000
159,751
613
449,209
2019
$
249,107
9,600
124,728
-
383,435
(1)The Group receives corporate services including office rent and facilities, KMP services, management and accounting services under a
Corporate Services Agreement with Chalice Gold Mines Limited. Messrs Goyder and Hacker are KMP’s of Chalice Gold Mines Limited.
Amounts invoiced are based on a proportionate share of the cost to Chalice Gold Mines Limited of providing the services and have normal
payment terms.
(2)The Company’s Non-Executive Director Mr Chadwick provides general metallurgical and technical advisory services to the Company
through a consultancy agreement. There is no fixed remuneration component under the consultancy agreement for these services and
those services are provided on an “as required basis” at a rate of $2,000 per day. Either party may terminate the agreement by providing
one months’ notice and are payable under normal payment terms.
(3)The Group receives database management and field services from related parties of the Managing Director, Mr Richards. Amounts paid
are on normal commercial terms.
(4)The Group receives accounting services from a related party of the CFO, Mr Hasson. Amounts paid are on normal commercial terms.
Amounts payable to KMP and related parties at reporting date arising from these transactions was $15,808 (2019: $30,588).
22. EVENTS OCCURRING AFTER THE REPORTING PERIOD
In July 2020, the Company received $1.5 million in cash from Core Lithium Limited ("Core") in relation to the contingent
consideration pursuant to the Sale Agreement Liontown entered into with Core in 2017 for the sale of the Bynoe Lithium
Project in the Northern Territory.
On 3 July 2020 1,253,619 service rights were issued to KMP in lieu of the payment of a portion of cash salary or fees
otherwise payable.
No other matters or circumstances have arisen since the 30 June 2020 that have significantly affected, or may significantly
affect, the Group’s operations, the results of those operations, or the Group’s state of affairs in future financial years.
6 8 | N O T E S T O T H E C O N S O L I D A T E D F I N A N C I A L S T A T E M E N T S
DIRECTORS’ DECLARATION
1.
In the opinion of the Directors of Liontown Resources Limited (‘the Company’):
(a)
the financial statements, notes and additional disclosures of the Group are in accordance with the Corporations
Act 2001 including:
i.
ii.
(b)
(c)
giving a true and fair view of the financial position of the Group as at 30 June 2020 and of its performance
for the year then ended; and
complying with Australian Accounting Standards (including the Australian Accounting Interpretations) and
the Corporations Regulations 2001;
there are reasonable grounds to believe that the Company will be able to pay its debts as and when they
become due and payable; and
the financial statements and notes thereto are in accordance with International Financial Reporting Standards
issued by the International Accounting Standards Board.
2.
This declaration has been made after receiving the declarations required to be made to the Directors in accordance
with section 295A of the Corporations Act 2001 for the financial year ended 30 June 2020.
This declaration is signed in accordance with a resolution of the Directors:
David R Richards
Managing Director
Dated this 16th day of September 2020
6 9 | D I R E C T O R S ’ D E C L A R A T I O N
INDEPENDENT AUDITOR’S REPORT
To the members of Liontown Resources Limited
Report on the Audit of the Financial Report
Opinion
We have audited the financial report of Liontown Resources Limited (“the Company”) and its
controlled entities (“the Group”), which comprises the consolidated statement of financial position
as at 30 June 2020, the consolidated statement of profit or loss and other comprehensive income,
the consolidated statement of changes in equity and the consolidated statement of cash flows for
the year then ended, and notes to the financial statements, including a summary of significant
accounting policies, and the directors’ declaration.
In our opinion, the accompanying financial report of the Group is in accordance with the
Corporations Act 2001, including:
a)
giving a true and fair view of the Group’s financial position as at 30 June 2020 and of its
financial performance for the year then ended; and
b)
complying with Australian Accounting Standards and the Corporations Regulations 2001.
Basis for opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities
under those standards are further described in the Auditor’s Responsibilities for the Audit of the
Financial Report section of our report. We are independent of the Group in accordance with the
auditor independence requirements of the Corporations Act 2001 and the ethical requirements of
the Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for
Professional Accountants (“the Code”) that are relevant to our audit of the financial report in
Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our opinion.
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. We have determined that there are no key
audit matters to communicate in our report.
Information other than the financial report and auditor’s report thereon
The directors are responsible for the other information. The other information comprises the
information included in the Group’s annual report for the year ended 30 June 2020, 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.
7 0 | I N D E P E N D E N T A U D I T O R ’ S R E P O R T
If, based on the work we have performed, we conclude that there is a material misstatement of this
other information, we are required to report that fact. We have nothing to report in this regard.
Responsibilities of the directors for the financial report
The directors of the Company are responsible for the preparation of the financial report that gives
a true and fair view in accordance with Australian Accounting Standards and the Corporations Act
2001 and for such internal control as the directors determine is necessary to enable the preparation
of the financial report that gives a true and fair view and is free from material misstatement, whether
due to fraud or error.
In preparing the financial report, the directors are responsible for assessing the ability of the Group
to continue as a going concern, disclosing, as applicable, matters related to going concern and
using the going concern basis of accounting unless the directors either intend to liquidate the Group
or to cease operations, or have no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the financial report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is
free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that
includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee
that an audit conducted in accordance with Australian Auditing Standards will always detect a
material misstatement when it exists. Misstatements can arise from fraud or error and are
considered material if, individually or in the aggregate, they could reasonably be expected to
influence the economic decisions of users taken on the basis of this financial report.
As part of an audit in accordance with the Australian Auditing Standards, we exercise professional
judgement and maintain professional scepticism throughout the audit. We also:
-
-
-
-
-
Identify and assess the risks of material misstatement of the financial report, whether due to
fraud or error, design and perform audit procedures responsive to those risks, and obtain audit
evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not
detecting a material misstatement resulting from fraud is higher than for one resulting from
error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the
override of internal control.
Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing
an opinion on the effectiveness of the Group’s internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of
accounting estimates and related disclosures made by the directors.
Conclude on the appropriateness of the directors’ use of the going concern basis of accounting
and, based on the audit evidence obtained, whether a material uncertainty exists related to
events or conditions that may cast significant doubt on the Group’s ability to continue as a
going concern. If we conclude that a material uncertainty exists, we are required to draw
attention in our auditor’s report to the related disclosures in the financial report or, if such
disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit
evidence obtained up to the date of our auditor’s report. However, future events or conditions
may cause the Group to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the financial report, including the
disclosures, and whether the financial report represents the underlying transactions and
events in a manner that achieves fair presentation.
We communicate with the directors regarding, among other matters, the planned scope and timing
of the audit and significant audit findings, including any significant deficiencies in internal control
that we identify during our audit.
7 1 | I N D E P E N D E N T A U D I T O R ’ S R E P O R T
We also provide the directors with a statement that we have complied with relevant ethical
requirements regarding independence, and to communicate with them all relationships and other
matters that may reasonably be thought to bear on our independence, and where applicable,
related safeguards.
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 2020.
In our opinion, the Remuneration Report of Liontown Resources Limited for the year ended 30 June
2020 complies with section 300A of the Corporations Act 2001.
Responsibilities
The directors of the Company are responsible for the preparation and presentation of the
Remuneration Report in accordance with section 300A of the Corporations Act 2001. Our
responsibility is to express an opinion on the Remuneration Report, based on our audit conducted
in accordance with Australian Auditing Standards.
HLB Mann Judd
Chartered Accountants
Perth, Western Australia
16 September 2020
D I Buckley
Partner
7 2 | I N D E P E N D E N T A U D I T O R ’ S R E P O R T
ASX ADDITIONAL INFORMATION
Additional information required by the Australian Securities Exchange Limited Listing Rules and not disclosed elsewhere in
this report applicable as at 15 September 2020 is set out below.
Shareholdings
Substantial shareholders
The number of shares held by substantial shareholders and their associated interests were:
Shareholder
Number of
ordinary
shares held
Percentage
of
capital held
%
Number of
unlisted
options held
Percentage
of unlisted
options held
%
Number of
unlisted
service
rights held
Percentage
of unlisted
service
rights held
%
Mr Timothy Goyder
313,809,143
18.20
3,000,000
4.56
331,655
26.46
Class of Shares and Voting Rights
There were 4,607 holders of the ordinary shares of the Company, 14 holders of unlisted options and 7 holders of service
rights. The Company has 65,800,000 unlisted options and 1,253,619 service rights on issue, of which 59,153,619 were
issued under the Employee Securities Incentive Scheme.
The voting rights to the ordinary shares set out in the Company’s Constitution are:
“Subject to any rights or restrictions for the time being attached to any class or Classes of shares -
(a) at meetings of members or classes of members each member entitled to vote in person or by proxy or
attorney; and
(b) on a show of hands every person who is a member has one vote and on a poll every person in person or by
proxy or attorney has one vote for each ordinary share held.”
Holders of options or service rights do not have voting rights.
Restricted Securities
There are no restricted ordinary shares on issue.
On-Market Buy-Back
There are no current no-market buy-back of securities.
Distribution of equity security holders
Category
1 – 1,000
1,001 – 5,000
5,001 – 10,000
10,001 – 100,000
100,001 and over
Total
Ordinary Shares
Unlisted Share Options
Unlisted Service Rights
Number of equity security holders
151
301
608
2,133
1,414
4,607
-
-
-
-
14
14
-
-
-
3
4
7
Marketable Parcel
The number of shareholders holding less than a marketable parcel was 166.
7 3 | A S X A D D I T I O N A L I N F O R M A T I O N
TWENTY LARGEST ORDINARY FULLY PAID SHAREHOLDERS
AS AT 15 SEPTEMBER 2020
Name
MR TIMOTHY GOYDER
J P MORGAN NOMINEES AUSTRALIA PTY LIMITED
CLEMENT PTY LTD
GRAHAM KLUCK MANAGEMENT & INVESTMENT PTY LTD
THE UNIVERSAL ZONE PTY LTD
ANISIMOFF SUPER FUND PTY LIMITED
INVIA CUSTODIAN PTY LIMITED
CITICORP NOMINEES PTY LIMITED
BNP PARIBAS NOMINEES PTY LTD HUB24 CUSTODIAL
SERV LTD
SODERHOLME CO PTY LTD
BOTSIS HOLDINGS PTY LTD
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
MR ANTHONY CIPRIANO
DOUBLE EAGLE PTY LTD
GREMAR HOLDINGS PTY LTD
GREMLYN PTY LTD
EQUITY TRUSTEES LIMITED
CALM HOLDINGS PTY LTD
KENMA INVESTMENT ADVISORS PTY LIMITED
BNP PARIBAS NOMS PTY LTD
Total
Number of ordinary
shares held
Percentage of
capital held %
313,809,143
18.20
93,298,472
48,940,000
43,506,000
26,290,000
22,074,844
21,964,080
21,116,336
20,042,280
19,256,936
16,000,000
14,935,427
13,604,105
11,215,479
11,000,000
11,000,000
10,640,000
10,000,000
9,800,000
9,564,727
5.41
2.84
2.52
1.52
1.28
1.27
1.22
1.16
1.12
0.93
0.87
0.79
0.65
0.64
0.64
0.62
0.58
0.57
0.55
748,057,829
43.38
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Liontown Resources Ltd
ABN 39 118 153 825
Level 2, 1292 Hay St,
West Perth 6005, Western Australia
T: +61 8 9322 7431
info@ltresources.com.au
www.ltresources.com.au
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