SHAREHOLDER
REPORT
2017
Photo by: Arnand van Heerden
Shareholder Report 2017
Financial Snapshot
39,732,373
Shares on Issue
155.5 CENTS
Net tangible assests per share
$216.6 MILLION
Revenue
$10.3 MILLION
Net profit after tax
25.9 CENTS
Earnings per share after tax
18 CENTS
Dividend per share (fully franked)
Contents
Chairman’s Report
Managing Director’s Report
The Board of Directors
About Lycopodium
Project Reviews
Financial Information
Shareholder Information
Corporate Directory
01
02
06
08
12
26
28
29
1
Lycopodium has begun two EPC
projects in Africa as described in the
Managing Directors Report and while
these projects are going well our
strategy is to limit our tendering on EPC
projects to those that allow us to do
sufficient investigation to be confident
in our pricing and to those where the
conditions of contract apportion risk in a
fair and reasonable way. The Mondium
JV established in the period is a further
strategy to allow Lycopodium to be
involved in larger EPC projects without
exceeding the limits we have set.
The rebuilding that had begun last
year has continued and the market
for engineering services seems to be
growing across the range of services
and countries where we operate. The
growth is starting from a low base and
is not spectacular but it has allowed
Lycopodium to achieve a substantial
improvement on last years result with
expectation of a similar result next year.
The improved result this year is the
result of the efforts and commitment of
the whole staff and management team
and I would like to thank you on behalf
of the Directors and Shareholders.
I hope you find this report informative
and readable and if you would like
further information please give us a call.
MJ Caratti
Chairman’s Report
My name is Mick Caratti. I am one of the founders and
chairman of Lycopodium.
This publication is designed to introduce you to the
company, telling you who we are, what we do and how
we see our future. This report does not replace the
statutory financial statements but is designed to provide
an informative insight into Lycopodium in an easier to
read layout.
A year ago I said that the stability of the
iron price, the strength of the gold price
and the ability of junior miners to raise
finance for new projects at that time,
indicated that the worst was over.
Gladly this has proved correct as we
have seen a steady improvement in
metal prices since then and there has
been a steady though not high flow of
projects proceeding to commitment.
Junior companies have also been able to
raise money for exploration which bodes
well for future projects.
The driver for this improvement is an
interesting subject for speculation and is
well beyond my ability to unravel but I do
believe that Lycopodium’s achievement
in surviving the downturn after 2012
with a loss of only $1M in one period
is a testament to the strategies the
Board has followed since the company’s
inception.
Since the down turn it has been
interesting to watch the changes that
have occurred. During the boom times
prior to 2012 the number of projects
being built meant that it was a sellers
market and many projects were
negotiated without being tendered in
order to get work started in a timely
manner. Since then there has been
a major downturn in the number of
mining projects being built and only
a few projects have found finance.
More recently government spending in
infrastructure projects has increased
albeit with not a lot of projects being
released for construction. Under those
conditions, as always happens, tenders
will be highly competitive and to be
successful, tenderers will be forced to
make little provision for profit. These are
the normal forces that are seen in every
cycle.
A difference this time is that some of
the larger companies and government
agencies are asking contractors
and service providers to also accept
unlimited liability for factors outside
their control. It can be assumed that
this is a reaction to the company boards
or government being attacked by
investors, electors or the press when
overruns occur. The intent seems to
be to manage risk by forcing it on to
the contractor in a highly competitive
market rather than to understand the
risk and provision for it appropriately. It
will be interesting to see what happens
with contracts let this way as contracts
let with no hope of profit rarely go well
without the contractor taking on risk
that is beyond his control. Ultimately
the Owner pays for bad contracting
strategies as well bad design. For service
providers it is a major issue as these
unlimited liability provisions cannot
be covered by Professional Indemnity
insurance and are a subject of concern
in the insurance industry.
The preference in the minerals industry
for EPC or lump sum contracts to build
their plants is in some cases an attempt
to pass on the cost risk associated with
building a new project. In the case of
junior companies that is sometimes
driven by the financier who may not
see the junior company having the
skills necessary for other development
methods. The EPC delivery method
can be very efficient as it allows a more
streamlined approach with an agreed
scope and quality of supply and little
need for the Owner’s involvement in
the vast majority of decisions. It is most
appropriate however when building a
repeat of a previous design so that the
Owner knows what he is buying. It is
not appropriate on new processes and
without sufficient time for the details to
be agreed prior to signing the contract.
EPC contracts inherently carry greater
risk than EPCM contracts due to
most of the price risk being carried
by the contractor including in some
circumstances the cost impact of
unknowns at the time of signing.
2
Shareholder Report 2017
Managing Director’s
Report
Lycopodium has had a busy year across all sectors. We
have continued to execute our strategies and have seen
our first class teams successfully deliver services across
all sectors within which we are involved. In line with this
we have achieved a good financial outcome for the year
and have further strengthened our balance sheet and
financial position.
In mineral resources Lycopodium was
busy with the delivery of five green fields
gold projects Mako (Senegal), Houndé
(Burkina Faso), Natougou (Burkina Faso),
Sissingué (Côte d’Ivoire) and Santa Rosa
(Colombia) as well as two expansion /
upgrade projects Karma (Burkina Faso)
and Toka Tindung (Indonesia).
The level of activity in our infrastructure
business increased materially in the
second half of the financial year with a
number of new briefs awarded to both
the rail and asset management groups
including a material package of asset
management work with Energy Australia.
In addition we are actively bidding a
number of packages on the Inland
Rail Project in Eastern Australia, a key
national infrastructure initiative.
In our process industries business we
have been awarded the design and
construct contract for a Cotton Seed
De-linting HCl package in NSW and are
seeing a modest but steady increase in
the number of opportunities.
We have grown in terms of staff
numbers in line with the increased
levels of activity and all our projects and
studies are being delivered very well
across the business and as always that
is a reflection of our great people
and teams.
FULL YEAR RESULTS
As per prior guidance, the Directors
are pleased to report a successful
outcome for the financial year ended
30 June 2017, with Lycopodium
achieving revenues of $216.6 million
and a net profit after tax of $10.3 million.
Basic earnings per share were 25.9 cents.
The Directors have resolved to pay a
final dividend of 9 cents fully franked,
which aligns with our dividend policy.
The total dividend for the year is
18 cents fully franked.
OUTLOOK
General view
We consider that we are experiencing
a new normal and expect that
these conditions will prevail for the
foreseeable future. In practical terms
that translates to a reasonable level of
work and opportunity in the market.
With the business environment having
stabilised we believe that this will in due
course reflect in the business being able
to achieve financial outcomes more in
line with historical levels.
Resources
In general we have seen steady if not
strengthening prices across most
commodities. The gold price has been
resilient through the year having almost
reached US$1,300/oz on occasion.
Obviously a strong gold price will be
positive for the world’s gold miners
which in turn will be positive for us given
our strong track record and credentials
in the delivery of gold projects. Similarly,
since November 2016 the price of
copper has strengthened and is up over
25% for the year, this too is positive for
our current and prospective clients and
should see activity sustained or increase
should these pricing levels prevail.
The price of iron ore has also surprised
to the upside this year and we are
seeing a number of opportunities arise
as global producers look to shore up
their ability to sustain production levels.
Infrastructure
We believe that our activity in the
sectors which we services will continue
to improve in line with what we
have seen in the last half of this past
financial year. This will be driven by a
combination of factors which include the
announced funding by the Australian
Federal Government of some significant
infrastructure initiatives during the
financial year, a key example being
ARTC’s Inland Rail Project, and an
increase in spending by both the private
and government sectors in terms of the
maintenance planning and management
of their fixed assets.
CORPORATE OVERVIEW
As flagged last year we have now
integrated our asset management,
rail and general infrastructure activities
under the Lycopodium Infrastructure
banner. We consider this to have
been successful in that we have
worked through the integration of
the businesses whilst continuing to
strengthen the respective teams,
we have broadened the locations in
which we are providing our rail, civil
infrastructure and asset management
services. Our rail and asset management
teams in particular have on the basis of
the integration and improved market
conditions also achieved improved
financial performance.
Another key initiative for the year
was the establishment of Mondium
Pty Ltd (Mondium). This business
is a standalone joint venture
company owned by Lycopodium and
Monadelphous Ltd, a highly respected
engineering and construction company
listed on the ASX. Mondium has been
established to service the mineral
resources market in Australia and select
other regions by delivering projects
on an Engineering Procurement and
Construction (EPC) or Lump Sum
Turnkey (LSTK) basis. Mondium has been
in establishment mode for most of this
financial year but has also bid a number
of high profile EPC opportunities. Whilst
it is yet to win work its’ offering, as
demonstrated in the various tenders,
has been in every instance well received
and well regarded. The numbers of
opportunities in the EPC market remain
low and those that have presented have
all been toughly contested however we
have every confidence that Mondium
will be successful in the near term in
3
Photo by: Arnand van Heerden
securing some EPC based contracts
and will undoubtedly build a strong
name for itself based on the excellent
management team and capabilities
in place.
Finally, we have also been focussing on
our ‘One Minerals’ strategy. This initiative
is about ensuring that we deliver a
consistent high standard of service
across all our mineral resources related
offices. We have excellent capabilities
and depth across the business and
we have a plan in place to leverage
off those capabilities efficiently and
effectively for the benefit of our clients
and ultimately our shareholders. Several
organisational changes have been made
during the year which will help build the
foundations for furthering this initiative
over the next 12 months.
OPERATIONAL HIGHLIGHTS
Lycopodium Minerals (including the
Perth, Brisbane, Toronto and Manila
based organisations) continued building
its track record as the preeminent
international engineer in terms of
gold projects working on study or
development phase activities for
projects in Colombia, Mali, Senegal,
Ghana, Burkina Faso, Ethiopia, Namibia,
Philippines, Côte d’Ivoire and French
Guiana. Lycopodium Minerals also
continued its long relationship with
First Quantum Minerals Limited (FQM)
with work continuing on the world class
Cobré Panama Project in Panama.
ADP built on its relationship with key
clients including De Beers (and its
subsidiaries) whilst advancing several
key studies and projects. Orway Mineral
Consultants (OMC) built on the Group’s
strong reputation for innovation with
its continued work on the Carapateena
Concentrate Treatment Project for OZ
Minerals.
Lycopodium Minerals, ADP and OMC
provided services predominantly to the
resources sectors with the following
highlights:
• Cobré
Lycopodium continued working on
the Mina De Cobré Panama project
for First Quantum Minerals Ltd
(FQM), furthering an extended
and effective association with
FQML on various projects in Australia
and Africa. This year, Lycopodium’s
engineering and procurement
activities have ramped up in line with
the construction requirements.
Design and procurement in many
areas of the plant is nearing
completion and at punch list phase,
including milling, flotation, bulk
and copper concentrate thickening,
secondary crushing and reclaim
and stockpiling. The majority of the
engineering effort is planned to be
completed by 4Q2017.
• Sissingué
In 2015 Lycopodium completed the
Feasibility Study, a Mill Option
Study and completed the Front
End Engineering Design for Perseus
Mining Limited’s (Perseus) Sissingué
Project. Across the year Lycopodium
provided engineering, procurement
and construction (EPC) services to
deliver the process plant and related
project infrastructure. The process
plant has been designed to process
nominally 1 Mtpa of primary run of
mine ore crushing, grinding, gravity
concentration (including intensive
cyanidation and electrowinning),
pre-leach thickening, leaching /
adsorption, elution, electrowinning,
smelting and carbon regeneration,
with CIL tailings pumped to a
Tailings Storage Facility. The project is
progressing well in terms of safety and
quality with engineering, drafting and
procurement activities complete and
construction progress well advanced
with first gold on target for 1Q2018.
• Santa Rosa
Lycopodium was awarded the EPCM
contract for the development of the
Santa Rosa project for Red Eagle
Mining (of Canada) in March 2015,
having completed a Feasibility
Study in October 2014. Red Eagle
planned an initial 1,000 tpd
expandable operation producing an
average annual production of 50,000
ounces over an eight year mine life.
Site construction began 3Q2015
and by January 2016 engineering and
procurement activities were
essentially complete with the main
effort being carried out by the
Lycopodium Toronto office with the
help of a local Colombian engineering
company based in Medellin. During
4Q2016, construction and
commissioning of the mill was
completed. The first gold pour was
in November 2016 with the
processing facility exceeding design
throughput, with the capability to
process up to 1,200 tonnes per day.
• Houndé
In April 2016, Lycopodium was
awarded the EPCM contract for
the delivery of Endeavour Mining
Corporation’s (Endeavour) 90%-owned
Houndé project in Burkina Faso.
The project comprises the delivery of
a gold processing plant and
associated infrastructure capable
of treating 3 Mtpa of gold bearing
ore. Having undertaken the Detailed
Feasibility Study and participated
in project optimisation reviews,
Lycopodium was able to commence
detailed engineering immediately
with site activities commencing
shortly after. Duration for project
construction was estimated to be
18 months with Endeavour planning
to self-perform the project build,
while Lycopodium focussed primarily
on the processing facility. Just over
a year later, in May 2017, Endeavour
presented an update to the markets
4
Shareholder Report 2017
Managing Director’s
Report
on the status of the project, by
announcing: “excellent progress is
being made, having achieved a major
milestone with the SAG mill
components, which are the longest
lead items, already on site and
installation underway. Construction is
progressing on-time with over 85%
of the total project complete and on-
budget, with the first gold pour
expected during the 4Q2017”. This
project is progressing very well and
continues our long association with
the Endeavour team.
• Fekola
Nearing completion of construction
in a remote location in south
western Mali, some 400 km west
of the capital Bamako, is the Fekola
mine. Lycopodium’s involvement in
the development of this project is a
continuation of a successful
association with two other B2Gold
projects - Otjikoto in Namibia and
Masbate in the Philippines. The
process plant was designed to process
nominally 4 Mtpa primary run of
mine ore. Fekola project infrastructure,
also part of the Lycopodium
design scope, includes process
plant, administration and mine offices
and workshops. Lycopodium scope
of services included the process
design, detailed engineering and
design of the new facilities; delivering
procurement services for equipment
and materials purchases as well as
providing a team of engineers
who were integrated with B2Gold’s
construction team to deliver site
technical and scheduling support.
Significant activities undertaken
by Lycopodium during the year have
included completion of the: detailed
design scope of the original 4 Mtpa
processing plant, detailed design
scope and equipment procurement
for the 5 Mtpa process plant
expansion, closeout of the
construction fabrication contracts,
and additional design scope items
requested by B2Gold, which included,
mine bulk diesel and lube storage and
dispensing facilities and expansion
of the mine workshop facility.
Recently, B2Gold announced
that mine construction is ahead of
schedule and on target for an October
2017 production start. Lycopodium
commissioning personnel
commenced site mobilisation in May
2016 and dry commissioning checks
are currently underway. B2Gold also
confirms the project is expected to be
completed on budget.
• Letlhakane XRT Tailings Audit Plant
technologically advanced vessel to
enable deep water diamond
exploration and sampling off the
coast of Namibia. Following its’ launch
in January 2016, the vessel was sailed
from Norway to Cape Town, where
it was fitted out with its Mission
Equipment, comprising of the
sampling tool, the launch and recovery
system, and the treatment plant.
The treatment plant was designed by
LADP / ADP M&M each of which
has specialist expertise in mineral
processing and modular plant design
and construction, to minimise
footprint, height and mass, and
still provide operational flexibility
in compliance with stringent ocean-
going standards. Sea trials were then
undertaken late in 2016 prior to hot
commissioning in non-diamondiferous
areas, thereby offering the opportunity
to resolve issues prior to establishing
the security protocols. This project
was recognised by De Beers Marine as
being highly successful and meeting or
exceeding its objectives.
Process Industries
Lycopodium Process Industries provided
services predominantly to the chemicals,
renewable and pharmaceutical sectors
with the following highlights:
• Axieo
Axieo Operations Australia Pty Ltd
(Axieo) is a distributor and
manufacturer of raw materials,
ingredients and specialty
chemicals. Its products add colour,
taste and function to the everyday
lives of consumers and are key
ingredients in many manufacturing
sectors and processes. Lycopodium
has been providing various detail
design, procurement, relocation and
commissioning services and during
the period relocated and upgraded
Axieo’s production facility where
adjuvants and solutions are blended
from a small facility located in
Bayswater, Victoria to an existing
larger facility with expanded storage
of raw materials and finished products
in Dandenong South, some 30 km
away. The project commenced in
September 2016 and was completed
in April 2017.
The Karowe Diamond Mine, owned
by Lucara Diamonds, is located in the
Letlhakane region some 500 km north
west of Gaberone in Botswana. Since
the AK 6 pipe was opened in 2012 it
has yielded over 2,000,000 carats
(400 kg) of diamonds. Lycopodium
ADP was retained in 1Q16 out of the
Cape Town offices on an EPCM basis
to develop conceptual options and
thereafter to design and implement
an XRT Tailings Audit Plant scheduled
for commission at the end of 2017.
• Mako
In August 2016, Lycopodium was
awarded the Engineering,
Procurement and Construction (EPC)
contract for the delivery of Toro Gold
Ltd’s (Toro) Mako Project in Eastern
Senegal. Lycopodium’s scope of work
is to carry out the process design,
detailed engineering and drafting for
the gold process plant and associated
facilities, including supply of equipment
and materials, construction and
commissioning through to handover
to Toro. The process plant will be
designed to process nominally or
1.8 Mtpa of run of mine (ROM) ore
through crushing, grinding,
classification, pre-leach thickening,
leaching / adsorption, elution,
electrowinning, smelting and carbon
regeneration, with CIL tailings
detoxified and pumped to a
Tailings Management Facility. Since
award, Lycopodium has completed
all engineering and procurement
activities and focus has shifted to
the construction of the infrastructure
facilities and the process treatment
plant. When developed, Mako will be
only the second gold development
in the country. The project is located
adjacent a World Heritage listed
wildlife park which has seen the
design and construction of project
being undertaken in strict compliance
with the International Cyanide
Management Code (ICMC) as well as
having minimum plant footprint and
strict sediment controlled runoff.
• Alternative Resource Development
Capability New Evaluation Vessel
(ARDC NV) – De Beers Marine
We are proud of our association
through Lycopodium ADP (LADP),
and sister company ADP Marine &
Modular (ADP M&M), with the recently
inaugurated SS Nujoma, the sixth and
latest addition to Debmarine Namibia’s
fleet, being a highly specialised and
5
• City of Perth, Property Asset
Management Planning Services
The City of Perth (CoP) covers an
area encompassing the Central Perth
Business District, West Perth, Crawley,
Northbridge and East Perth.
Lycopodium recently completed
working with the local government
organisation to deliver Property
Asset Data Collection and Condition
Programme services to enable the
City to progress its Property Asset
Management Programme.
• Maude Street Shared Pathway
Newcastle City Council’s (NCC)
commitment to enhancing cycling in
Newcastle saw it progress
investigations into a long standing,
well supported proposal to develop a
cycleway onto the rail corridor, under
the rail overbridge and along the rail
corridor to meet the current University
cycleway. Based on works delivered
to date, NCC awarded Lycopodium
additional scope to provide concept
and detailed design of the shared
pathway, detailed design of adjacent
road network and traffic signals as
well as participation in and facilitation
of workshops to progress the design.
These studies started in August 2015
and are scheduled for completion by
December 2017.
HSE and Community
Lycopodium’s primary focus is on the
health and safety of its staff and all
personnel working on its projects. We
continue to set and achieve a high
standard of health and safety across
all our projects and given the highly
international nature of our activities we
have worked proactively to ensure the
security, safety and well being of our
personnel wherever they may be.
In 2016/17 there were 3.67 million
manhours worked across the
Lycopodium managed projects with a
LTIFR of 0.0 against an 8.0 construction
industry average.
On the community side, Lycopodium
continued to focus on education as a
means of strengthening communities
and in line with this remained an active
sponsor and supporter of:
• The Clontarf Foundation, a charitable
not-for-profit organisation in Australia
improving the education, discipline,
self-esteem, life skills and employment
prospects of young Aboriginal men.
In addition Lycopodium supported a
number of key initiatives around its areas
of operation. Examples include:
• Engagement with local college
facilities in the area around one
project in West Africa to provide
a select group of local employees
(electrical and instrumentation) skills
training with the objective being
to enhance their skill set through the
construction phase and improve their
chances for full time employment post
the project. Based on the success of
this initiative it is intended to roll out
this model on future projects.
• At Endeavour’s Houndé Project
Lycopodium has provided two
scholarships to graduating Year 12
students from the local senior school.
These students, one female and one
male, will be supported in a curriculum
aligned to engineering or mining.
Additionally, Lycopodium was an active
participant in a number of targeted
educational initiatives in association with
both the University of Western Australia,
Curtin University (Western Australia) and
the South African Minerals Education
Trust Fund (METF). The Company
also continued to provide support
to a number of charitable initiatives
championed by staff.
Acknowledgement
The Board of Directors recognises
that the Company’s ability to continue
delivering world class services to
our clients and to maintain and
enhance the company’s performance
and capability is dependent on the
continued commitment and support of
our personnel. On behalf of my fellow
Directors I take this opportunity to
sincerely thank all personnel for their
highly valued contribution.
We would also like to thank our clients
for their continued trust in Lycopodium
to deliver services to their projects and
studies. We will as always work hard to
maintain these valued relationships.
Peter De Leo
Managing Director
• ANSTO
ANSTO is a statutory body of the
Australian government, formed in
1987 to replace the Australian Atomic
Energy Commission. Over the past few
years, Lycopodium has been working
with ANSTO in the development of an
innovative and cutting edge
technology on their new SyMo Waste
Treatment Plant (SWTP), which is an
integral part of ANSTO’s strategic plan
that addresses the requirements of
managing radioactive waste. The
SWTP facility will utilise Synroc
Technologies, an innovative waste
treatment process technology
designed to lock up nuclear waste,
thus providing a safe and secure
method for final disposal.
Lycopodium’s role is to provide the
detailed design for the Off-Gas System
(OGS). SWTP will be used to process
liquid waste from the production of
radiopharmaceutical Molybdenum 99.
Infrastructure
Lycopodium Infrastructure provides
services across the general
infrastructure, transport (road and rail)
and asset management sectors with the
following highlights:
• CITIC Pacific Powerplant
Engineering Design
The massive Sino Iron Ore Project
developed at Cape Preston,
100 km south west of Karratha in
Western Australia’s Pilbara region
commenced producing magnetite
concentrate in late 2012 with the first
shipment being sent to China in 2013.
In 2016, the last of six processing lines
entered commissioning. Lycopodium’s
involvement with the project has
been to provide detailed engineering
design (using 3D modelling approach)
of the warehouse, workshop, roads
and drainage as well as site technical
support services during construction
for the Power Plant area. The
assignment commenced January 2016
and construction is due for completion
September 2017.
6
Shareholder Report 2017
Board of Directors
Bruno Ruggiero
EXECUTIVE DIRECTOR
Bruno is a founder of
the Lycopodium group
and has had a number of
key roles throughout the
group’s business units
since its inception in 1994.
He currently serves as
the Technical Director for
Lycopodium Minerals, having
overarching responsibility
for the Company’s technical
knowledge base, capabilities
and direction. At an
operational level Bruno’s role
involves extensive project
involvement, responsibility
for strategy and the definition
and delivery of technical
solutions in its EPC business.
Bruno is a mechanical
engineer by training, with
additional qualifications
in process and structural
engineering. His experience
spans over 30 years in the
minerals industry, having
worked on various projects
and studies in Australia,
North America, South
America, Europe, Asia and
Africa in all capacities of
the Company’s business –
engineering, procurement,
construction and
management.
Bruno is an Executive
Director of Lycopodium
Minerals and a Non Executive
Director of ECG Pty Ltd.
Robert (Bob) Osmetti
EXECUTIVE DIRECTOR
Bob is a Civil Engineer with
over 38 years’ experience in
the project management and
construction management
of projects in an EPCM role
and has worked for major
construction contractors in
the mining sector.
He brings direct experience
in all aspects of project
implementation, estimating,
scheduling and construction
management as well as the
management of a number of
feasibility studies for major
resource projects in Australia
and overseas.
Bob is one of the founding
partners of Lycopodium and
has held diverse positions
within the group. Bob is
currently the Managing
Director of Mondium Pty
Ltd, a fully incorporated JV
between Monadelphous and
Lycopodium established to
service the engineering and
construction market on an
EPC basis.
Michael (Mick) Caratti
NON EXECUTIVE CHAIRMAN
Mick has nearly 40 years’
experience in the mineral
processing industry with
involvement in conceptual
evaluation, engineering,
commissioning and study
management for new and
existing projects in Australia
and overseas.
Mick has extensive
experience in company
management having been
a director and shareholder
of a successful engineering
consulting company from
1982 to 1987, and then as
a director and shareholder
of Lycopodium from its
formation in 1992.
Mick’s primary role as
Chairman is to take a global
view of the engineering
industry and Lycopodium’s
place in it whilst maintaining
the Company’s founding
philosophies and strategies.
Keith Bakker
Company Secretary / Chief
Financial Officer
Keith has been with
Lycopodium for over 20 years
and in that time has carried
out the roles of Commercial
Manager and General
Manager Finance.
A Fellow of the Certified
Practicing Accountants of
Australia, he brings to his
role of Company Secretary
and Chief Financial Officer,
over 30 years’ experience
in company secretarial and
finance roles within the
airline, human resource
management and mining
services sectors.
7
Rodney (Rod) Leonard
EXECUTIVE DIRECTOR
Rod is one of the founding
partners of Lycopodium
and an Executive Director
of Lycopodium Limited
since listing in 2004. Rod
is presently the Managing
Director of Lycopodium
Minerals and a Non-Executive
Director of ADP Holdings.
His management roles within
Lycopodium have included
that of Managing Director
of Lycopodium Limited and
through earlier periods with
Lycopodium Minerals the
roles of Technical Director for
the Risk Management Group,
Managing Director, General
Manager of Operations and
Manager of Metallurgy.
Rod has nearly 30 years’
experience in a variety of
roles in the operation and
project development of
major projects in North
and South America, Africa,
Asia and Australia and has
been involved in many
aspects of the mineral
processing industry from
process development,
feasibility studies, and design
assignments as well as
commissioning of projects.
Steven Chadwick
NON EXECUTIVE DIRECTOR
Steven is a Metallurgical
Graduate of the WA School
of Mines with over 40 years’
experience in the mining
industry, incorporating
technical, operating and
management roles, as well
as a strong metallurgical
background.
Steven is now a metallurgical
consultant specialising
in project management
with a range of local and
international clients. He was
a founding Director of BC
Iron and a former Managing
Director of Coventry
Resources, PacMin Mining
and, Northern Gold. Steven
brings extensive industry and
operating experience to
the board.
Peter De Leo
MANAGING DIRECTOR
Peter is the Managing
Director of Lycopodium
Limited and has been with
the organisation since
1994. He was previously
the Managing Director of
Lycopodium Minerals Pty Ltd
from 2009 through to 2015
and prior to that held the
roles of General Manager
– Operations, Manager of
Projects and Project Director
within the Organisation.
Peter is a Civil Engineer with
over 29 years’ experience in
engineering and construction
within the resources and
infrastructure sectors. Peter
possesses strong business
management and project
implementation skills and
has been responsible for the
successful delivery of many
of Lycopodium’s pioneering
and large scale projects. In
his corporate roles he has
often led the organisation
in shaping and reshaping
as required to meet the
needs, and capitalise on the
opportunities, within the
market.
A Fellow of the Institute
of Engineers Australia,
Peter maintains an active
involvement with industry
associations and tertiary
educations institutions both
as a representative of the
organisation and of industry.
Lawrence (Laurie)
Marshall
NON EXECUTIVE DIRECTOR
Laurie was Lycopodium
Limited’s Managing Director
until early 2010 when, with
the appointment of Rod
Leonard, Laurie took up the
positions of Non Executive
Director and Consultant.
He is also a Non Executive
Director of Lycopodium
Process Industries,
Lycopodium Infrastructure,
ADP Holdings and Metco
Global.
As a founding partner
and Certified Practicing
Accountant with over
40 years’ experience
in corporate, financial
operational and risk
management, Laurie has
been instrumental in the
development of Lycopodium
from its early days as a
privately owned engineering
consultancy to that of a
public company.
8
Shareholder Report 2017
About Lycopodium
OUR COMPANY
Lycopodium is an innovative and value driven process, engineering and project management consultancy, which in 2017 is
celebrating its 25th year in business.
Our multidiscipline services are provided through our subsidiaries, which specialise in their industry segment. Through our
focused approach Lycopodium is able to consistently meet our clients’ expectations and develop long term relationships.
LYCOPODIUM LIMITED
MINERALS
ADP
PROCESS INDUSTRIES
& RENEWABLES
INFRASTRUCTURE
ORWAY MINERAL
CONSULTANTS
MONDIUM
• Mineral processing
• Diamond
• Materials Handling
Processing
• Specialty
Chemicals
• Plant & Mine
Infrastructure
• Mineral processing
• Pharmaceuticals
• Fixed and Modular
• Research &
Process Plants
Development
• Underwater Mining
• Food & Beverage
• Manufacturing
• Renewable
Energy
• Communition
Circuit, Modelling
and Optimisation
• Hydrometallurgy
• Process Plant
Consulting and
Commisioning
• Civil
• Rail, Roads,
Avaiation
• Mine Infrastructure
& Accomodation
• Planning & Land
Development
• Industrial,
Commercial &
Public Works
Buildings
• Asset management
A Lycopodium
Monadelpous JV
• Engineering
(Minerals
Processing and
Handling
• Project
Management
• Construction
Management
• Large scale EPC
Established in 1992, Lycopodium is headquartered in Perth, Australia and is listed on the Australian Stock Exchange. Lycopodium
has offices nationally in Brisbane, Melbourne, Newcastle and Perth and internationally in Canada, South Africa and the Philippines.
OUR BUSINESS
Lycopodium’s business model is based
on consistently delivering quality
services to clients through feasibility
studies, projects, operations and
maintenance advice which are fit for
purpose, objective and reliable. In this
way Lycopodium adds value to a client’s
business leading to long term beneficial
relationships.
We work closely with our clients to
evaluate, develop and implement
engineering solutions for their projects
and our involvement starts from the
early conceptual planning moving
through the feasibility phases to the
completion of design, construction,
commissioning and handover,
continuing with optimisations, reliability
engineering and maintenance services
on operational sites.
Our contracting model is flexible
and always aligned to meet a client’s
requirements. We deliver projects on
the basis of reimbursable and lump sum
EPCM basis (Engineering, Procurement,
Construction Management), which
relates to professional services only,
and on an EPC basis, also referred
to as lump sum turn key or design
and construct, which encompasses
professional services as well as plant
and equipment. We can also incorporate
partial or fully integrated teams together
with a client to best align with a client’s
internal capabilities.
Our work, reflecting diversity in not
only client background, but commodity,
technology, scale of operation and
geographic location, falls into seven
broad groups:
Mineral Processing
Our Mining and Mineral Processing
clients range from major multinational
producers through to junior exploration
companies and their projects involve
a wide range of commodities: gold,
copper, nickel, diamonds, iron ore,
cobalt, zinc, lead, manganese, uranium,
tin, tantalum, rare earth minerals and
platinum group metals.
Projects, undertaken in diverse
environments including tropical, arid,
arctic and high altitude conditions,
range in scope from large greenfield and
brownfield projects involving process
plant and equipment, civil and building
works, control systems and supporting
infrastructure to small skid-mounted,
transportable plants.
Infrastructure
Lycopodium has wide-ranging
experience managing the assessment,
design, planning and implementation
of a variety of infrastructure elements,
both independently and in conjunction
with mineral processing projects.
Infrastructure elements include power
supply, water supply and treatment,
housing, commercial and industrial
buildings, roads, aerodromes and
general infrastructure.
Process Industries
Our Process Industries clients, many of
them household names, produce a wide
variety of products in the manufacturing,
pharmaceutical, chemical, food and
beverage, healthcare, oil and gas and
petrochemical sectors.
Rail
Lycopodium provides rail infrastructure
asset management services, feasibility
study and detailed design services to the
heavy rail industry. These services are
often complimentary in nature to larger
projects undertaken within the group
which include a rail component.
9
Renewables
Lycopodium is at the forefront of
developments in renewable energy
and energy efficiency including the
implementation of projects in solar,
biofuels, waste to energy and heat
energy recovery.
Agriculture
Given our extensive technical
capabilities, we have had on increasing
involvement in the agricultural sector.
This has included large irrigation
systems, food handling and processing
facilities, food and animal by-product
processing to generate energy as well
as new value adding by-products. Often
these agricultural projects encompass
other industry segments in which
Lycopodium operates.
Maintenance and Reliability
Maintenance and reliability engineering
clients come from the oil and gas,
petrochemical, power and water utilities,
infrastructure, mining and minerals
processing and marine industries.
In this sector, there is significant
experience in re-engineering existing
systems for brownfield operations as
well as developing and implementing
new maintenance management systems
for greenfield operations.
Project examples of the various
commodities and industry sectors in
which Lycopodium has worked during
the recent year follow later in this
shareholder report.
OUR SERVICES
Throughout our 25 year history,
Lycopodium has developed a reputation
for providing technically innovative and
cost effective engineering solutions and
delivering projects which exceed the
client’s project criteria and performance
targets.
Lycopodium operates with well
established systems and processes to
ensure consistency in our approach
across all aspects of project delivery.
Our services fall generally into four areas
of expertise:
Process
Lycopodium’s process group has a
wide range of experience to undertake
the development of new processes
and determine the viability of new and
existing processes, including:
• Planning, design, supervision and
interpretation of laboratory, bench-
scale and pilot-scale test programs.
• Flowsheet development, mass and
energy balances, process modeling,
process design specification.
• Management and coordination of
necessary skills in the production
of studies. These studies are done
at different levels of confidence
depending on the stage of
investigation and are usually defined
as concept study, pre-feasibility study
and detailed or bankable feasibility
study.
• Evaluation and selection of new
and alternative processes at the
conceptual and pre-feasibility study
stages to determine the viability of
new and existing processes.
• Comminution circuit design using
specialist database and in-house
software to design crushing and
grinding circuits and predict their
performance.
• Hydrometallurgy for base metals,
uranium and rare earths.
• Commissioning, training and
operations services.
• Design, construction management
and operation of pilot plant
installations.
• Plant audits, debottlenecking
evaluations and staged development
planning.
Environmental compliance processes,
e.g. cyanide recovery and destruction,
arsenic fixation and disposal, metal
precipitation and water management.
Engineering
Lycopodium’s engineering group can
offer a wide range of capabilities for the
development of a project, including:
• Conceptual and detailed design of
processing plants.
• Conceptual and detailed design of
infrastructure including earthworks,
roads, drainage, power supply and
transmission systems, buildings
and, accommodation villages with
amenities, water and wastewater
systems.
• Design expertise covering all relevant
disciplines including:
> Architectural > Piping
> Civil
> Structural
> Mechanical
> Electrical
> Instrumentation
> Process Controls
• Design, program, test and commission
plant automation control systems
• Plant refurbishment and relocation.
• Conceptual and detailed design of
large modular and panelised plants
for major projects down to small
transportable and skid- mounted
plants.
• Plant debottlenecking, upgrading and
improvements.
• Troubleshooting and modification of
mechanical and electrical installations.
• Design expertise in tropical, arid,
arctic and high altitude locations.
• General engineering consulting
services including due diligence
reports, project valuations and
debottlenecking studies.
10
Shareholder Report 2017
Project Delivery
Lycopodium undertakes the project and
construction management of clients’
projects, including:
• Full project and construction
management to deliver complete
projects.
• Health, safety, environmental,
community relations, quality
management services.
• Project controls including cost control
and scheduling.
• Tender preparation and evaluation.
• Procurement, expediting and
inspection services.
• Plant evaluations and assessments for
insurance or sales purposes.
• Capital and operating cost estimates.
• Financial evaluation of projects.
• Client representation.
• Development and implementation of
project accounting services.
• Development and implementation of
project maintenance and reliability
engineering services.
• Logistical and transport management.
Maintenance and Reliability
Engineering Services
Lycopodium can assist plant site
operators to reduce operating costs and
increase productivity, whilst complying
with statutory regulations and duty
of care obligations, by refining or re-
engineering their operating methods,
maintenance management practices
and implementing the required change
processes.
These services fall within the following
areas:
• Maintenance System Development –
the preparation of work instructions
to provide comprehensive
maintenance actions.
• Optimisation – the fine tuning of
systems, procedures and processes
to cost effectively provide the highest
productivity, availability and reliability
for an operational site.
• Materials Management and
Optimisation – encompasses all
aspects of identifying, categorising
and organising equipment in a facility
or system.
• Operational Readiness – the provision
of services to assist clients to initiate
operation of new projects.
• Planning – the detailed processes and
practices that form the maintenance
planning cycle.
their requirements. Lycopodium’s highly
customer focused approach and ability
to deliver tailored, value adding solutions
has been fundamental to our success.
Lycopodium focuses on achieving each
client’s aims as its primary objective
and its success is demonstrated by
the high level of client satisfaction and
repeat business the company enjoys.
Lycopodium continues to deliver
innovative and fit for purpose outcomes,
tailored to the needs of individual clients.
OUR PEOPLE
OUR GOALS
Engineering consulting is a service
industry and Lycopodium is dependent
on its people for the quality of service
it provides. Lycopodium is proud of the
professionalism and loyalty of the team
it has assembled and their achievements
in the innovative and cost effective
design and construction of projects in
diverse industries and regions.
Lycopodium uses a team approach to
its work where each project has a team
drawn from the disciplines required
and is led by a project manager. Each
discipline is headed by a discipline
manager who is responsible for
monitoring and controlling the quality of
work within the discipline and ensuring
each project manager has sufficient
resources to run the project team.
Regular formal management meetings
are held to review progress, cost and
quality and ensure all projects are fully
resourced, on time and on budget.
Lycopodium provides a team of
respected professionals in each of
the disciplines required in a process,
engineering and project delivery
business.
OUR CLIENTS
Lycopodium services a wide range
of organisations headquartered
throughout the world including large
international companies, mid tier and
emerging companies, and junior and
start up companies. The majority of our
services are the result of long standing
relationships with our clients, built over
years of high quality services specific to
Lycopodium’s aim is to be the best in its
field through the delivery of techno-
economic solutions which optimise a
project’s returns to each of our clients.
We believe our success is intimately tied
to the success of our clients’ projects.
Lycopodium has a proven track record
of meeting budgets and schedules and
achieving project performance criteria
on both large and small projects and in
greenfield (new) and brownfield (existing
operating plant) environments.
A successful process, engineering
and project management consulting
company doesn’t stand still – it grows
through consistency and reliability
in project delivery, accepting new
challenges and resetting goals, which
for Lycopodium reflects in larger, more
complex projects and work in new areas,
be they technical or geographic.
Long Term View
Lycopodium continues to focus on the
longer term horizon. Our growth has
always been the product of delivering
excellence to our clients on a consistent
basis. In turn we are rewarded through
repeat work, references to new clients
and industry recognition for technical
and project delivery excellence. This
approach has enabled the business
to expand through organic growth in
alternative geographic locations and
through strategic acquisition where clear
added value to the business can be
demonstrated.
11
12
Shareholder Report 2017
Project Reviews
Project Houndé
Client:
Endeavour Mining Corporation
Location: Burkina Faso
Sector: Minerals – Gold
In April 2016, Lycopodium was awarded the EPCM contract for
the delivery of Endeavour Mining Corporation’s (Endeavour)
90%-owned Houndé project in Burkina Faso. With an initial
capital cost estimated at $328 million, the project comprises
the delivery of a gold processing plant and associated
infrastructure capable of treating 3 Mtpa of gold bearing ore.
Having undertaken the Detailed Feasibility Study and
participated in project optimisation reviews, Lycopodium was
able to commence detailed engineering immediately with
site activities commencing shortly after. Duration for project
construction was estimated to be 18 months with Endeavour
planning to self-perform the project build, while Lycopodium
focussed primarily on the processing facility.
Just over a year later, in May 2017, Endeavour presented
an update to the markets on the status of the project, by
announcing: “excellent progress is being made, having achieved
a major milestone with the SAG mill components, which are the
longest lead items, already on site and installation underway.
Construction is progressing on-time with over 85% of the total
project complete and on-budget, with the first gold pour expected
during the 4Q2017”.
Further, Sébastien de Montessus, President and CEO, stated:
“I would like to thank the team for their continued hard work and
dedication which is allowing Houndé construction to remain on-
budget and on-time for a first gold pour in the fourth quarter. Most
importantly, I would like to congratulate them for posting
4 million hours without a lost time injury (LTI) - continuing to build
on their track record at Agbaou, which was also built without an
LTI incident”.
Over the past year, Lycopodium has:
• Provided 2 scholarships to graduating Year 12 students from
Houndé to attend a University in Ouagadougou or in Bobo
• Managed over 1 million site manhours with no Lost Time
Injuries
• Completed engineering and drafting on schedule and on
budget. Also completed all procurement under budget
• Continued to keep construction on schedule
• Commenced planning of resources for the commissioning
phase
Construction of this project is a continuation of a successful
development and construction partnership between
Lycopodium and Endeavour on the Nzema (Ghana) and
Agbaou (Côte d’Ivoire) projects.
Located within the Houndé greenstone belt some 250 km
south west of Ouagadougou, the capital city of Burkina Faso,
the project benefits from excellent existing infrastructure.
Once in production, Houndé will become Endeavour’s flagship
low-cost mine, ranking amongst West Africa’s top tier cash
generating mines.
13
Project Mako
Client:
Toro Gold Ltd
Location: Senegal
Sector: Minerals - Gold
Toro Gold Ltd (Toro) is a private gold exploration and
development company focused on the prolific Birimian and
Archean geological terranes of Africa. Established in 2009,
Toro has established a portfolio of gold projects across
multiple jurisdictions, with its flagship asset being the Mako
mine in Eastern Senegal, discovered in 2011.
Successive drilling campaigns were carried out from 2011 to
2015 and, based on these drilling results and the associated
resource estimates, Toro completed a Pre-Feasibility Study in
2014 and a Definitive Feasibility Study in 2015.
Lycopodium assisted Toro through the preparation of these
studies taking responsibility for the Metallurgy, Process Route
Design, Project Infrastructure, as well as Study Manager
responsibilities. In August 2016, Lycopodium was awarded the
Engineering, Procurement and Construction (EPC) contract for
the delivery of the project with responsibility for the execution
and delivery of the various facilities and scope of work
elements being divided between Lycopodium and Toro.
Lycopodium’s scope of work is to carry out the process
design, detailed engineering and drafting for the gold process
plant and associated facilities, including supply of equipment
and materials, construction and commissioning through to
handover to Toro.
The process plant will be designed to process nominally or
1.8 Mtpa of run of mine (ROM) ore through crushing, grinding,
classification, pre-leach thickening, leaching / adsorption,
elution, electrowinning, smelting and carbon regeneration, with
CIL tailings detoxified and pumped to a Tailings Management
Facility. Mako ore properties are unique (extremely hard,
extremely abrasive, extremely clean with low viscosity) and
these characteristics needed to be considered in the proposed
designs. Required infrastructure includes a mine services area,
buildings, accommodation camp, and related process and non-
process infrastructure and site power station (by others).
Since award, Lycopodium has completed all engineering
and procurement activities and focus has shifted to the
construction of the infrastructure facilities and the process
treatment plant.
An important element placing pressure on the project team
and schedule is Senegal’s weather, in that it has two principal
parts – tropical; hot, humid; rainy season from May to
November with a dry season between December to April.
The project, approximately 650 km ESE of the capital city Dakar
is accessed via the main national Dakar – Bamako highway and
lies approximately 5 km from this sealed main road. When
developed, Mako will be only the second gold development in
the country. The project is located adjacent a World Heritage
listed wildlife park which has provided some additional
challenges for the design team including strict compliance
with the International Cyanide Management Code (ICMC), a
minimum plant footprint and strict sediment controlled runoff.
he project is expected to be completed on budget.
14
Shareholder Report 2017
Project Reviews (Continued)
Project
Fekola
Client:
B2Gold
Location: Mali
Sector: Minerals - Gold
Nearing completion of construction in a remote location
in south western Mali, some 400 km west of the capital
Bamako, is the Fekola mine. Lycopodium’s involvement in the
development of this project is a continuation of a successful
association with two other B2Gold projects - Otjikoto in
Namibia and Masbate in the Philippines.
The process plant was designed to process nominally 4 Mtpa
primary run of mine ore through single stage primary crushing,
an open SAG mill circuit with recycle pebble crushing, and a
closed circuit ball mill, leach feed thickening with thickener
overflow treated through a carbon in column circuit, leaching
followed by carbon in pulp adsorption, elution and gold
recovery to doré, cyanide detoxification, tailings thickening, and
disposal circuits.
Fekola project infrastructure, also part of the Lycopodium
design scope, includes process plant, administration and mine
offices and workshops.
In 2015, Lycopodium completed an Optimised Feasibility Study.
Once approvals were in place, B2Gold quickly commenced
construction, making the decision to self-perform the project’s
construction with Lycopodium providing resources to
supplement the B2Gold construction team with engineering,
schedule support and commissioning.
In 2016 B2Gold announced that, as a result of positive drill
results and exploration potential, they had decided to increase
throughput at Fekola and proceed with an expansion of the
mill. Design factors built into the Optimised Feasibility Study
by Lycopodium included 5 Mtpa assumptions for plant design,
general infrastructure and tailings dam design and location,
thus enabling ore throughput capacity to reach up to 5 Mtpa from
the onset of initial production.
With this additional capital investment, the Fekola mill
expansion is expected to be completed and commissioned in
conjunction with the original plant commissioning.
Lycopodium scope of services included the process design,
detailed engineering and design of the new facilities; delivering
procurement services for equipment and materials purchases
as well as providing a team of engineers who were integrated
with B2Gold’s construction team to deliver site technical and
scheduling support.
Significant activities undertaken by Lycopodium during the year
have included completion of the:
• Detailed design scope of the original 4 Mtpa processing plant
• Detailed design scope and equipment procurement for the
5 Mtpa process plant expansion
• Closeout of the construction fabrication contracts, and
• Additional design scope items requested by B2Gold, which
included, mine bulk diesel and lube storage and dispensing
facilities and expansion of the mine workshop facility.
Recently, B2Gold announced that mine construction is ahead
of schedule and on target for an October 2017 production
start. Lycopodium commissioning personnel commenced site
mobilisation in May 2016 and plant dry commissioning checks
are currently underway. B2Gold also confirms the project is
expected to be completed on budget.
15
Project Masbate Upgrade
Project
Sissingué
Client:
B2Gold / Phillippene Gold Processing &
Refining Corp
Location: Phillippines
Sector: Minerals – Gold
Client:
Perseus Mining Limited
Location: Côte d’Ivoire
Sector: Minerals - Gold
Philippine Gold Processing & Refining Corp (PGPRC), a wholly
owned subsidiary of B2Gold, is the owner of the mineral
processing facility at the Masbate mine in the Philippines.
Masbate’s original throughput was 4 Mtpa and an expansion has
recently been completed to increase throughput to 6.5 Mtpa of
ore at a grind size of 150 µm with design provision for a further
expansion up to 8 Mtpa at 106 µm with the addition of an
extra ball mill at a later date.
Lycopodium has an established and valued relationship with
B2Gold having been involved with studies and development
of B2Gold’s Otjikoto project in Namibia and Fekola mine in
Mali. Lycopodium also has detailed understanding of the
Masbate project having completed the detailed design and
provided commissioning services when the mine was first
opened in 2009. More recently Lycopodium completed a
scoping study that looked at various expanded throughput
options and completed the engineering and procurement (EP)
services for the 6.5 Mtpa expansion project.
This 6.5 Mtpa expansion project has recently been
commissioned and is producing at or above nameplate
capacity. PGPRC is now considering advancing the further
8 Mtpa expansion project with the addition of an extra ball mill.
Masbate, which lies 360 km south-east of the capital city
Manila, can be accessed by a commercial airline service which
flies daily to Masbate City and a 70 km drive on a partially
sealed road to the project site. Alternate access to the site
from Masbate City is via a one hour boat ride. The site is
equipped with a barge loading jetty where heavy equipment
and consumables are delivered and offloaded with a private
airstrip for charter aircraft.
B2Gold is a Vancouver based gold producer with four operating
mines, one mine under construction and a portfolio of
development and exploration assets in various countries around
the world. mongst West Africa’s top tier cash generating mines.
Perseus Mining Limited (Perseus) is a diversified West African-
focused gold production, development and exploration
company.
Currently Perseus operates the Edikan mine in Ghana (which
entered commercial production in January 2012) and has
Sissingué under construction in Côte d’Ivoire and Yaoure, also
in Côte d’Ivoire, in the feasibility and early development stage.
In 2015 Lycopodium completed the Feasibility Study, a Mill
Option Study and completed the Front End Engineering
Design for Sissingué. At present, Lycopodium is working with
Perseus to provide engineering, procurement and construction
(EPC) services to deliver the process plant and related project
infrastructure.
Lycopodium’s scope of work is to carry out the process
design, detailed engineering and drafting for the process
plant and associated facilities, including supply of equipment
and materials and construction and commissioning services
through to handover to Perseus.
The process plant will be designed to process nominally
1 Mtpa of primary run of mine ore crushing, grinding,
gravity concentration (including intensive cyanidation and
electrowinning), pre-leach thickening, leaching / adsorption,
elution, electrowinning, smelting and carbon regeneration, with
CIL tailings pumped to a Tailings Storage Facility.
The project is progressing well in terms of safety and quality
with engineering, drafting and procurement activities complete
and construction progress well advanced with first gold on
target for 1Q2018.
Sissingué is in the north of the country, adjacent to the Mali
border approximately 700 km from the commercial capital,
Abidjan.
Côte d’Ivoire is heavily dependent on agriculture and related
activities, which engage roughly two-thirds of the population.
Côte d’Ivoire is the world’s largest producer and exporter of
cocoa beans and a significant producer and exporter of coffee
and palm oil. Mining gold and exporting electricity are growing
industries outside agriculture.
Following the end of more than a decade of civil conflict
in 2011, Côte d’Ivoire has experienced a boom in foreign
investment and economic growth and for the last 5 years Côte
d’Ivoire’s growth rate has been among the highest in the world.
16
Shareholder Report 2017
Project Reviews (Continued)
Project Mina de Cobré Panama
Client:
Minera Panama /
First Quantum Minerals Ltd
Location: Panama
Sector: Minerals – Copper, Gold, Molybdenum
During the 2016/17 year Lycopodium continued working on
the Mina De Cobré Panama project for First Quantum Minerals
Ltd (FQM), furthering an extended and effective association
with FQML on various projects in Australia and Africa.
Toronto Stock Exchange listed FQM, and its Panamanian
subsidiary Minera Panama, are developing this US$5+ billion
copper project (including a port and power station) in the
Republic of Panama.
Plans for the project involve mining from three open pits,
overland conveyor transportation, a concentrator treatment
plant adjacent to the mine with the concentrate being pumped
25 km to a port area for filtration and export. The project’s
mine life has been estimated at more than 30 years and it will
produce around 300,000 t/y copper, 100,000 oz/y gold and
2,500 t/y molybdenum.
Awarded the project in 2013, Lycopodium scope of services
is to carry out the process, earthworks, architectural, civil,
structural, mechanical and piping detailed engineering design,
and provide technical input into the procurement process for
the construction of the process plant, services and associated
infrastructure. The processing plant will have an installed
capacity of 74 Mtpa for the first period of operation with the
capacity to expand up to 100 Mtpa.
The major equipment in the Cobré process plant includes:
This year, Lycopodium’s engineering and procurement activities
have ramped up in line with the construction requirements.
Design and procurement in many areas of the plant is nearing
completion and at punch list phase, including milling, flotation,
bulk and copper concentrate thickening, secondary crushing
and reclaim and stockpiling.
Our areas of focus for the remainder of 2017 will be water
services, reagents concentrate regrind, primary crushing and
re crush crushing. The majority of the engineering effort is
planned to be completed by 4Q2017.
This project involves some of the largest currently available
and proven unit processing equipment in the world and
Lycopodium has worked collaboratively with FQML to support
its project development style to achieve industry leading capital
intensity and project schedule targets.
Primary Crushing plants, semi mobile in-pit gyratory
Overland Conveyors
Secondary Crushers
SAG Mills
Recrush Crushers
Ball Mills
Gravity Concentrators
Bulk Flotation Cells
Thickeners
Regrind Mills
Overland Concentrate Pumpin
Concentrate Filtration
Water Reclamation
2
2
2
3
2
1
3
4
10
22
10
8
4
6
2
2
1
3
2
3
16
(1,500 kW/crusher) with max throughput of 5,800 t/h/crusher
(1,000 kW/crusher) with max throughput of 3,600 t/h/crusher
1 km each, 2.6 wide at 1,2000 t/h
(2,500 kW/crusher) with max throughput of 4,500 t/h/crusher
28 MW/mill, 40’ dia x 24’ EGL
28 MW/mill, 40’ dia x 27’ EGL
(930 kW/crusher) with a max throughput of 810 t/h/crusher
16.5 MW/mill, 26’ dia x 42’ EGL
48’’ centrifugal gravity concentrators
630 m³ tank cells
300 m³ tank cells
200 m³ tank cells
100 m³ tank cells
5 m dia columns
4.5 m dia Jameson cells
50 m dia bulk concentrate
40 m dia copper concentrate
5 MW Stirred mills
900 kW piston/diaphragm pumps
1,500 m² horizontal plate filters
1.1 MW pontoon mounted decant return pumps. Design capacity of
30,000 m³/h water returned to plant site
17
Project
SS Nujoma
Client:
Debmarine Namibia
Location: Namibia
Sector: Minerals - Gold
Lycopodium ADP (LADP), and sister company ADP Marine &
Modular (ADP M&M), are proud of their association with the
recently inaugurated SS Nujoma, the sixth and latest addition
to Debmarine Namibia’s fleet, being a highly specialized and
technologically advanced vessel to enable deep water diamond
exploration and sampling off the coast of Namibia.
The vessel was built in Ulsteinvik in Norway by the Kleven Verft
shipbuilding group, and is named after Namibia’s founding
president, Dr Sam Nujoma. The 113 metre-long diesel-electric
powered vessel has a displacement of 12,000 tonnes, and
accommodates a crew of 80. It has a helicopter deck suitable
for Sikorsky S61’s, and is equipped to remain on exploration
operations for three years between port maintenance layovers.
The vessel itself was manufactured in six modules, five in
Poland and one in the builder’s Norwegian shipyard. The Polish
modules were transported on a barge to Kleven Verft for final
assembly on the slipway.
Following its’ launch in January 2016, the vessel was sailed from
Norway to Cape Town, where it was fitted out with its Mission
Equipment, comprising of the sampling tool, the launch and
recovery system, and the treatment plant. The treatment plant
in turn comprises the following plant areas:
• Primary plant,
• Comminution plant,
• Dense media separation plant, and
• Final recovery.
The treatment plant was designed by LADP / ADP M&M each
of which has specialist expertise in mineral processing and
modular plant design and construction, to minimize footprint,
height and mass, and still provide operational flexibility in
compliance with stringent ocean-going standards.
The Mission Equipment was designed and built in large
modules, suitable for marine duty within a confined deck
space, with a combined mass of 2,200 tonnes, in parallel with
vessel construction in Norway. The modules were lifted on to
the vessel using the second-largest super-lift crane in southern
Africa, with the heaviest module weighing in at 220 tonnes.
A feature of the modular plant design was the ability to lift and
place portions of plant from quayside, to the Vessel enabling
complete fit-out and cold commissioning of the Mission
Equipment within 3 months. Sea trials were then undertaken
prior to hot commissioning in non-diamondiferous areas,
thereby offering the opportunity to resolve issues prior to
establishing the security protocols.
LADP’s process design input included the seamless processing
and management of multiple samples (>5 samples), by a
fully automated and intelligent system by application of a
pre-designed binning philosophy and vendor-proprietary
batch software. LADP also designed the automated capturing
of metallurgical and processing data per sample as each is
processed through the different
unit processes.
Of course every project has tight time, cost and quality targets
so what is so different with this design? Briefly some of the
design challenges were as follows:
• Being a sampling vessel, the sample integrity is paramount
and no hang-up, material entrapment or retention could be
allowed between samples.
• Furthermore unlike the rest of the fleet which are ‘winch
positioned’, this vessel has dynamic positioning which
facilitates the faster sampling rate that is targeted for the
SS Nujoma. This required fast processing and purge cycles
for each sample within each of the unit processes, which
underpinned the sizing and selection of equipment.
• With regards to control and instrumentation engineering
and new to DBM and LADP was the use of ‘Dessoft’. This is
an intelligent database driven software for the generation
of P&IDs to facilitate the instrumentation design. Also the
implementation of the ISA-88 standard for batch control,
which will be used to manage and track samples, as well as
record pertinent sample information through the treatment
plant.
• Layout and design challenges are obvious - footprint,
height and mass had to be kept to a minimum. Ongoing
weight management during the design phase alerted the
LADP team to the fact that the allowable mass was being
exceeded. Some clever thinking and engineering resulted
in the lowering of the Final Recovery module by one floor.
ADP Marine & Modular were well suited to undertaking this
plant design as they have designed, built and commissioned
numerous final recovery plants for the De Beers Group over
the past 20 years.
• Also important was to ensure effective integration of all
treatment plant components into the platform (the vessel).
In this regard detailed integration and battery limits had to
be carefully managed.
• As with any project ‘Safety in Design’ was critical. With
regards a ship there are more aspects to be taken into
account and stringent worldwide standards such as SOLAS
(Safety Of Life At Sea) needed to be adhered to.
De Beers marine was responsible for development of the
sampling tool, which was then fully integrated with the sampling
system to enable collation of comprehensive sample data.
Michael Curtis, Project Head for De Beers Marine, said “This
unique and technically challenging global project has been
successful in exceeding its objectives. The project team understood
how important the project is to our client Debmarine Namibia, and
have been committed from approval of the project in April 2015 to
fast track the delivery.”
Andrew Jakins, Managing Director of ADP Holdings and ADP
project sponsor noted “The combined De Beers Marine and
ADP teams deserve high praise for completing the immensely
complex process plant scope, not without its challenges, but with
all major metrics including cost, schedule, plant performance and
sampling rate, sample integrity and safety being either achieved or
surpassed”.
18
Shareholder Report 2017
Project Reviews (Continued)
Project Reviews (Continued)
Project
Santa Rosa
Client:
Red Eagle Mining Corporation
Location: Columbia
Sector: Minerals - Gold
Red Eagle Mining Corporation (Red Eagle) is focused on
building shareholder value through acquiring, developing
and operating gold projects in Colombia, a jurisdiction with
prolific historic production but until recently, limited modern
exploration.
Red Eagle owns 100% of the Santa Rosa Gold Project,
comprising a total area of approximately 33,000 hectares and
located 73 km northeast of the department capital Medellín in
northern Colombia.
Lycopodium was awarded the EPCM contract for the
development of the Santa Rosa process plant in March 2015,
having completed a Feasibility Study in October 2014. Red
Eagle planned an initial 1,000 tpd operation producing an
average annual production of 50,000 ounces over an eight year
mine life.
With confidence that additional resources will be identified in
the future, Red Eagle required that the design make allowance
for a future doubling of process plant capacity. Also, to meet
strict environmental regulations, the design required the plant
tailings to be filtered for dry tailings deposition.
The mine complex comprises the decline shaft providing
access to the San Ramon underground mine, processing plant
and plant infrastructure. Processing incorporates single-stage
crushing, SAG milling and flotation with concentrate re-grinding
followed by conventional carbon-in-leach, which processes the
combined float tails and regrind concentrate, to produce gold
dore at a 96% recovery.
Site construction began 3Q2015 and by January 2016
engineering and procurement activities were essentially
complete. The main design and procurement activities were
undertaken by the Lycopodium Toronto office with assistance
of a local Colombian engineering company based in Medellin.
During 4Q2016, construction and commissioning of the
mill was completed. The first gold pour took place during
November 2016 with the processing facility exceeding design
throughput, with the capability to process up to 1,200 tonnes
per day.
Red Eagle‘s future plan is to develop additional mines to feed
the Santa Rosa Mill Complex and fulfil its vision of increasing
capacity to 2,000 tonnes per day.
19
Project XRT Tailings Audit Plant
Client:
Boteti Mining (Pty) Ltd (Lucara Diamonds)
Location: Lethakane, Botswana
Sector:
Diamonds
The Karowe Diamond Mine, owned by Lucara Diamonds, is
located in the Letlhakane region some 500 km north west of
Gaberone in Botswana. Since the AK 6 pipe was opened in
2012 it has yielded over 2,000,000 carats (400 kg) of diamonds.
The mine was thrust into the international spotlight following
the discovery of the Lesedi La Rona (translated means
‘Our Light’) diamond weighing 1,109 carats, measuring 65 mm
x 56 mm x 40 mm on 16 November 2016 and an estimated
worth over USD65 million. The Lesedi La Rona is the largest
diamond recovered using machines for automated ore sorting
and processing and believed to be only the second diamond
ever recovered to exceed the 1,000 carat mark, the largest
being the 3,106 carat Cullinan diamond discovered more than
one hundred years prior, in 1905, part of which, the Great Star
of Africa, now forming part of the British royal crown jewels.
Lucara’s historical discovery was followed only a day later with
two more diamonds being recovered and weighing 813 and
374 carats, respectively.
Lycopodium ADP was retained in 1Q16 out of the Cape Town
offices on an EPCM basis to develop conceptual options and
thereafter to design and implement an XRT Tailings Audit Plant
scheduled for commission at the end of 2017. The scope of
facilities is to modify the existing tailings conveyor transfer
tower to include a 3-way splitter chute to enable a
stream of tailings to be diverted through advanced XRay
Transmission (XRT) technology sorting machines to audit
the tailings stream.
Project Otjiwarongo Graphite Project
Client:
Imerys Gecko Graphite
(Namibia) (Pty) Ltd
Location: Otjiwarongo, Namibia
Sector:
Graphite
In 2014 and 2015 Lycopodium ADP was engaged by the
previous mine owners (Gecko Graphite) to manage a test work
program and a feasibility study to update previous studies
performed by others. The work involved evaluating extensive
test work and subsequently scoping a 20 000 tpa graphite
plant flowsheet to improve the recoveries materially from what
was predicted during prior study work.
In 2016 Gecko Graphite and Imerys Graphite and Carbon,
Swiss based and part of the French CAC listed Imerys
Group, formed a company and undertook to convert the
decommissioned Okoruso fluorspar processing plant into a
graphite processing facility. Lycopodium ADP was appointed to
perform detailed design, procurement, construction reviews
and provide commissioning assistance for the 20 000 tpa
greenfields dry plant generally comprising new dewatering,
drying, size segregation and bagging facilities.
The plant at the end of 2Q17 was commissioned and in
ramp up.
20
20
Shareholder Report 2017
Project Reviews (Continued)
Project Reviews (Continued)
Project Benalla Filling System
Project
SST Facility Relocation
Client:
Thales Australia Limited
Client:
Axieo Operations (Australia) Pty Ltd
Location: Victoria
Location: Victoria
Sector:
Process Industries - Chemical
Sector:
Process Industries - Chemical
Australian Munitions is a business of Thales Australia Limited
(Thales) and is the largest supplier of explosive ordnance.
The company also produces high quality propellant and
ammunition for domestic and international customers.
Lycopodium has completed several projects for Thales at the
Mulwala site, but this is Lycopodium’s first involvement with the
Benalla site.
Thales has signed a 10-year contract with Orica Australia
(Orica) to produce five million explosive boosters each year
which will see imported products being replaced by Australian
ones. Orica is the world’s largest provider of commercial
explosives and innovative blasting systems to the mining,
quarrying, oil and gas and construction markets.
Boosters are small explosive devices that help detonate larger
charges, and are used extensively across Australia’s mining
and construction industries. The boosters themselves are an
advanced new product designed by Orica.
Andrew Donald Design Engineering (ADDE) was the prime
contractor for the automation and upgrade program
partnering with Lycopodium for the design, manufacture
and install of the Filling Head System that is able to deliver a
specific amount of explosive into each booster to meet the
required production rate. The system has been retro-fitted
into the Benalla plant’s existing ammunition filling facility which
presented major design complexities that had to be overcome.
Axieo Operations Australia Pty Ltd (Axieo) is a distributor
and manufacturer of raw materials, ingredients and specialty
chemicals. Its products add colour, taste and function to the
everyday lives of consumers and are key ingredients in many
manufacturing sectors and processes.
SST Australia manufactures and markets more than 70
products to the agricultural and turf industries in Australia and
New Zealand.
Late 2016, Axieo announced that it that it had signed an
agreement to acquire SST Australia and CEO Sam Bastounas
advised “that in the months ahead we will invest in upgraded
manufacturing facilities that expand our capabilities further”.
Lycopodium has been assisting Axieo to achieve their goals by
providing various detail design, procurement, relocation and
commissioning services.
Lycopodium has relocated SST’s production facility where
adjuvants and solutions are blended from a small facility
located in Bayswater, Victoria to an existing larger facility with
expanded storage of raw materials and finished products in
Dandenong South, some 30 km away.
Lycopodium has also upgraded the facility by:
• Designing and installing a bulk unloading facility for delivery
of Methyl Oleate by 20,000 L tankers instead of receiving in
IBC’s (Intermediate Bulk Container).
• Replacing 2 ageing tanks with larger stainless steel tanks
complete with agitators.
• Providing a new designed access walkway that delivers a safe
way of delivering pallets of materials to the mezzanine level
and installing a vacuum lifter to improve manual handling
methods.
• Designing and supplying 2 new hot water baths to warm up
viscous product to enable it to be pumped into mixing tanks
21
Project Off Gas Handling System,
SyMo Facility
Project Property Asset Management
Planning Services
Client:
Austra
Location:
Australian Nuclear Science and
Technology Organisation
Sector:
Process Industries - Manufacturing
Client:
City of Perth
Location: Western Australia
Sector:
Asset Management
ANSTO is a statutory body of the Australian government,
formed in 1987 to replace the Australian Atomic Energy
Commission. Headquartered in Lucas Heights, a suburb
in southern Sydney, it is a public research organisation
responsible for delivering specialised advice, scientific services
and products.
ANSTO’s vision is to deliver excellence in innovation, insight and
discovery through people, partnerships, nuclear expertise and
landmark infrastructure.
Created by the ANSTO Act 1987, the organisation’s core
functions are to:
• Conduct research and development in relation to nuclear
science and technology
• Produce and use radioisotopes, isotopic techniques and
nuclear radiation for medicine, science, industry, commerce
and agriculture
• Encourage and facilitate the application and use of the
results from research and development
• Manage radioactive materials and waste arising from various
prescribed activities
• Provide goods and services related to core activities
• Provide advice to government and undertake international
liaison in nuclear-related matters
• Make available facilities, equipment and expertise for
research in nuclear science and technology
• Publish scientific and technical reports, periodicals and
papers, and provide public information and advice.
Over the past few years, Lycopodium has been working with
ANSTO in the development of an innovative and cutting
edge technology on their new SyMo Waste Treatment Plant
(SWTP), which is an integral part of ANSTO’s strategic plan that
addresses the requirements of managing radioactive waste.
The SWTP facility will utilise Synroc Technologies, an innovative
waste treatment process technology designed to lock up
nuclear waste, thus providing a safe and secure method for
final disposal.
Lycopodium’s role is to provide the detailed design for the Off-
Gas System (OGS). SWTP will be used to
process liquid waste from the production of
radiopharmaceutical Molybdenum 99.
Perth, Western Australia is a modern and vibrant capital city,
boasting a desirable lifestyle and a great geographic location.
With just under 14 sq km in land area, the City of Perth (CoP)
covers an area encompassing the Central Perth Business
District, West Perth, Crawley, Northbridge and East Perth.
It is experiencing a period of rapid growth and development,
and by 2050 it is estimated that CoP will be home to 50,000
people, provide 180,000 jobs and will welcome an increasingly
diverse array of visitors.
Lycopodium recently completed working with the local
government organisation, CoP, to deliver Property Asset Data
Collection and Condition Programme services to enable the
City to progress its Property Asset Management Programme.
To do this, CoP has identified its objectives as:
• Finalising the City’s Land and Building Asset Management
Plans and continuing to satisfy statutory obligation
• Gaining an understanding of the condition of all current
buildings assets condition at a component level
• Identifying current operational and maintenance risks to the
City to facilitate detailed forward works planning
• Demonstrating capital works funding requirements, and
assisting strategic and portfolio estate planning.
Lycopodium’s scope of work included the following activities:
• Undertaking an Asset Data Collection to identify component
level assets within all City property.
• Completing an Asset Condition Rating, Risk & Rectification to
identify the current condition and rating of component level
assets within all City property.
• Providing a professional opinion of the current risk the
component and building represents to the City, along with
the recommended rectification actions required in order to
bring the property back to a suitable standard.
• Preparing a 10 Year forward works program for all property
assets based on a series of three scenarios that achieve
agreed condition levels of services.
• Developing, in consultation with CoP personnel, a scientific
and justifiable method to alter the priorities of the Property
Asset Component replacements to develop 3 scenarios.
• Conducting a review of emergency equipment as legislated
by Statutory Requirements.
• Producing a gap analysis of the Forward Works Plan against
the budget for each property asset to identify which of
the required actions in the Forward Works Plan have been
funded, and which have not.
• The composition of the property building asset portfolio
is broad and contains purpose built civic and heritage
buildings such as Council House, Perth Town Hall, City
Library and the Perth Concert Hall in addition to operational
depot assets, commercial buildings, community use building
assets and public toilets.
• Lycopodium was awarded this project in December
2016 with completion in May 2017.
22
Shareholder Report 2017
Project Reviews (Continued)
Project Maud St Shared Pathway
Project Power Plant Detail Engineering Design
Client:
Newcastle Conucil
Location: New South Wales
Sector:
Infrastructure
Client:
Citic Pacific Mining
Location: Western Australia
Sector:
Infrastructure
Newcastle City Council (NCC) is committed to enhancing
cycling in Newcastle with the objective of making cycling a
safe and attractive travel option, thus enabling more people
to use bicycles for more of their trips. To achieve this, it has
identified a range of infrastructure improvements and social
initiatives.
CITIC Pacific Mining (CPM) is a wholly-owned subsidiary of Hong
Kong listed company CITIC Limited. Headquartered in Perth,
the company was established to manage the construction and
operation of the Sino Iron project, an integrated magnetite
mining, processing and port operation that supplies quality
magnetite product to the Chinese steel mills.
A key regional route in Newcastle’s cycle network is the route
between the University of Newcastle and the Newcastle city
centre. A new city centre campus has recently opened, which
will likely increase demand for a safe cycling route between
these sites.
However, the current route involves negotiating a refuge
crossing of Maud Street in the suburb of Waratah which
renders the route unsuitable for novice riders. Not only are
sight lines obstructed by a rail overbridge, but the road carries
approximately 24,000 vehicles per day.
High on its list of priorities, NCC is progressing investigations
into a long standing, well supported proposal to develop a
cycleway onto the rail corridor, under the rail overbridge and
along the rail corridor to meet the current University cycleway.
Based on works delivered to date, NCC awarded Lycopodium
additional scope to include:
• Concept design of the shared pathway
• Detailed design of shared pathway
• Detailed design of adjacent road network and traffic signals
• Participation in and facilitation of workshops to
progress the design.
These studies started in August 2015 and are scheduled for
completion by December 2017.
Sino Iron is the largest magnetite mining and processing
operation in Australia and represents China’s largest-ever
overseas investment in the resources sector.
The massive Sino Iron project has been developed at Cape
Preston, 100 km south west of Karratha in Western Australia’s
Pilbara region.
Production of magnetite concentrate started in late 2012 with
the first shipment being sent to China in 2013. In 2016, the
last of six processing lines entered commissioning.
Lycopodium’s involvement with the project has been to provide
detailed engineering design (using 3D modelling approach)
of the warehouse, workshop, roads and drainage as well as site
technical support services during construction for the Power Plant
area.
Located on the coast of Western Australia’s Pilbara region, the
project site is subject to cyclonic activity and also exposed to
ambient temperatures reaching 50°C, very high solar radiation
intensity and corrosive seawater spray during windy periods.
All engineering designs and equipment selection had to be
completed in compliance with relevant cyclone procedures and
design requirements to address and withstand the particularly
harsh external environmental factors.
The assignment commenced January 2016 and construction is
due for completion September 2017
23
Lycopodium’s scope of work is to:
• Build the Equipment Asset Register hierarchy of
approximately 400 equipment items which will form the
complete asset register for the project
• Develop planned preventative maintenance and inspection
strategies, using Lycopodium’s in-house maintenance
development software
• Develop recommend spare parts data, based on
documented repair and spare part holding strategies
• Create load sheets for maintenance system data migration
into the Perseus’s maintenance management system.
• Lycopodium was awarded the contract by Perseus in early
2017, with completion due August 2017.
Project
Sissingue Maintenance System
Developement
Client:
Perseus Mining Limited
Location: Côte d’Ivoire
Sector:
Asset Management
Perseus Mining Limited (Perseus) is a diversified West African-
focused gold production, development and exploration
company. Projects include the Edikan mine in operation
in Ghana, with Sissingué well advanced in construction in
Côte d’Ivoire and Yaoure, also in Côte d’Ivoire, at an early
development stage. First gold is planned for Sissingué 1Q2018.
Currently Lycopodium is working with Perseus to provide the
engineering, procurement and construction (EPC) services to
deliver the process plant and related project infrastructure, as
well as providing services to develop a Maintenance System for
Sissingué’s fixed plant.
In development of this maintenance system, Lycopodium’s
focus has been one that will drive the efficiency and accuracy
when performing maintenance at the Sissingué plant operation.
There are three main areas for the Maintenance System:
• Equipment Register
• Preventative Maintenance and Inspection Strategies and
• Recommended Spares.
24
Shareholder Report 2017
Project Reviews (Continued)
Project
Evaluation Services for
Infrastructure Delivery Directorate
The services include:
• Assistance in preparation of evaluation criteria and scoring
Client:
Main Roads WA
Location: Western Australia
Sector:
Infrastructure
Main Roads WA (MRWA) is the State road authority of one of
the most geographically distributed road networks in the world
comprising more than 18,500 km of road spread over
2.5 million square km.
MRWA’s role is to plan, build, operate and maintain Western
Australia’s state road network valued at almost $48 billion.
Working across all levels of government, they ensure WA’s
road network meets the needs of the community, industry and
stakeholders.
In March 2014, Lycopodium was engaged by MRWA for
24 months duration to deliver services for the evaluation of
proposals for the delivery of major infrastructure projects. In
March 2016, Lycopodium secured a 24 month extension to
this engagement.
Lycopodium provides a senior independent industry
participant to be part of evaluation teams in the procurement
phase for various major infrastructure projects.
To date, Lycopodium has assisted MRWA in the procurement
phase of twelve major projects with a combined project value
of $1.56 billion and is engaged to provide these services for a
further four major projects.
guidelines
• At the Expression of Interest stage, assessment of
applications submitted by contractors (for the design and
construction of the projects) in order to shortlist those
companies who demonstrate superior financial, technical
and managerial capacity to deliver the works
• At the Request for Proposal stage for a Design and Construct
contract, evaluation of the proposals submitted for the
design and construction of the project, to select a preferred
proponent that not only demonstrates superior capacity
to deliver the works but offers a proposal that meets
appropriate standards and presents superior value for
money in terms of cost and
risk sharing profile.
• At the Proposal stage for an Alliance contract, evaluation
of proposals submitted in order to select a preferred
proponent who demonstrates superior capacity and
capability to deliver the works. This stage includes desktop
evaluations of proposals as well as participation in various
alliance workshops
and interviews.
• At the Proposal stage for an Integrated Project Services
contract, evaluation of proposals in order to select a
preferred proponent who demonstrates superior financial,
technical and managerial (including organisational,
contractual, social and environmental) capacity to deliver
the work.
• Preparation of evaluation reports.
25
26
Shareholder Report 2017
Financial Results
Revenue
Employee benefits expense
Depreciation and amortisation expense
Project expenses
Equipment and materials
Contractors
Occupancy expense
Impairment of goodwill
Other expenses
Loss on disposal of asset
Finance costs
Share of net profit of associate and joint venture accounted for using the equity
method
Profit / (Loss) before income tax
Income tax (expense) / benefit
Profit / (Loss) for the year
(Dividend (fully franked) (cents
Interim
Final
Total Dividend
Shares on issue
($) Share price as at 30 June
(Earning per share (cents
Price earnings ratio
(Net tangible assets per share (cents
Consolidated
2017
$
216,616,442
(61,898,213)
(1,171,764)
(9,843,966)
(74,207,912)
(38,255,322)
(8,052,368)
(263,242)
(9,540,001)
(1,634)
(93,651)
1,019,251
14,307,620
(3,934,091)
10,373,529
9.0
9.0
18.0
2016
$
124,460,218
(57,853,816)
(1,329,095)
(4,370,898)
(12,080,173)
(28,417,150)
(8,082,301)
(500,000)
(7,768,302)
(1,254)
(33,324)
1,191,724
5,215,629
(1,889,219)
3,326,410
1.5
4.0
5.5
39,732,373
39,732,373
3.15
25.9
12.2
155.5
2.10
8.0
26.3
142.0
Balance Sheet
ASSETS
Current assets
Cash and cash equivalents
Trade and other receivables
Inventories
Derivative financial assets
Current tax receivables
Other current assets
Total current assets
Non current assets
Investments accounted for using the equity method method
Available-for-sale financial assets
Property, plant and equipment
Intangible assets
Other receivables
Deferred tax assets
Total non current assets
Total assets
LIABILITIES
Current liabilities
Trade and other payables
Borrowings
Current tax liabilities
Provisions
Total current liabilities
Non current liabilities
Borrowings
Provisions
Total non current liabilities
Total liabilities
Net assets
EQUITY
Contributed equity
Reserves
Retained earnings
Parent entity interest
Non-controlling interest
Total equity
27
Consolidated
2017
$
2016
$
85,334,769
36,919,288
327,430
164,994
1,344,040
2,149,687
126,240,208
2,227,735
102,963
3,174,174
7,421,173
442,616
3,797,930
17,166,591
143,406,799
41,547,757
26,525,309
703,686
-
1,008,816
1,793,028
71,578,596
1,768,751
102,953
2,343,796
7,907,733
521,898
2,782,541
15,427,672
87,006,268
64,080,967
21,436,955
509,731
3,978,266
4,280,795
89,879
508,544
-
72,849,759
22,035,378
832,912
500,796
1,333,795
74,183,467
69,223,332
20,823,772
(988,042)
46,412,369
66,248,099
2,975,233
69,223,332
-
639,873
639,873
22,675,251
64,331,017
20,823,772
(840,944)
41,285,494
61,268,322
3,062,695
64,331,017
28
Shareholder Report 2017
Shareholder Information
The shareholder information set out below was applicable as at 6 September 2017.
A. Distribution of equity securities
Analysis of numbers of equity security holders by size of holding:
1
1001
5001
10001
100,001+
-1000
-5000
-10000
-100000
Total Holders
352
452
136
150
25
1,115
There were 80 holders of less than a marketable parcel of ordinary shares.
B. Equity security holders
The names of the twenty largest holders of quoted equity securities are listed as:
Name
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
Reesh Pty Ltd
HSBC Custody Nominees (Australia) Limited
Luala Pty Ltd
JP Morgan Nominees Australia Limited
Caddy Fox Pty Ltd
Selso Pty Ltd
Accede Pty Ltd
Citicorp Nominees Pty Ltd
Monadelphous Group Limited
Mr David James Taylor
De Leo Nominees Pty Ltd
Mr Peter De Leo & Mrs Tiana De Leo
De Leo Nominees Pty Ltd
Botech Pty Ltd
Lycopodium Share Plan Pty Ltd
RBC Investor Services Australia Nominees
Citicorp Nominees Pty Limited
Mr Timothy John Kelly & Mrs Lisa Annette Kelly
Nancris Pty Ltd
Rubi Holdings Pty Ltd
Number held
percentage
of Units
9,104,367
7,504,153
3,167,332
2,496,478
2,354,215
1,808,148
1,272,332
844,000
603,511
447,635
407,900
401,390
354,481
305,405
272,500
252,484
246,390
180,000
175,000
175,000
22.91
18.89
7.97
6.28
5.93
4.55
3.20
2.12
1.52
1.13
1.03
1.01
0.89
0.77
0.69
0.64
0.62
0.45
0.44
0.44
TOTAL
32,372,721
81.48
C. Substantial holders
Substantial holders in the company are set out below:
Name
1
2
3
4
5
Reesh Pty Ltd
HSBC Custody Nominees (Australia) Limited
Luala Pty Ltd
JP Morgan Nominees Australia Limited
Caddy Fox Pty Ltd
Number held
percentage
of Units
9,104,367
7,504,153
3,167,332
2,496,478
2,354,215
22.91
18.89
7.97
6.28
5.93
29
Photo by: Arnand van Heerden
Corporate Directory
Directors
Michael (Mick) John Caratti
Peter De Leo
Rodney (Rod) Lloyd Leonard
Robert (Bob) Joseph Osmetti
Lawrence (Laurie) William Marshall
Bruno Ruggiero
Steven (Steve) Chadwick
Company Secretary
Keith Bakker
Registered and Principal Office
Level 5, 1 Adelaide Terrace
East Perth WA 6004
T: + 61 (0)8 6210 5222
E: limited@lycopodium.com.au
www.lycopodium.com.au
Share Registry
Computershare Investor Services Pty Limited
Level 11, 172 St George’s Terrace, Perth WA 6000
T: +61 (0)8 9323 2000
Direct line for Investors: 1300 764 130
www.computershare.com.au
Lawyers to the Company
Clyde & Co.
Level 28, 197 St George’s Terrace
Perth WA 6000
T: +61 (0)8 6145 1700
Auditor
Grant Thornton Audit Pty Ltd
Level 1, 10 Kings Park Road
West Perth WA 6005
T: +61 (0)8 9480 2000
www.grantthornton.com.au
Level 5, 1 Adelaide Terrace
East Perth Western Australia 6004
T: + 61 (0)8 6210 5222
www.lycopodium.com.au