ANNUAL
FINANCIAL
REPORT
2021
Contents
Directors’ Report
Corporate Governance Statement
02
23
Financial Report
Consolidated Statement of Profit or Loss and Other Comprehensive Income 26
Consolidated Statement of Financial Position
27
Consolidated Statement of Changes in Equity
28
Consolidated Statement of Cash Flows
29
Notes to the Financial Statements
30
Directors’ Declaration
Independent Auditor’s Report
Shareholder Information
Corporate Directory
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87
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Cobre Copper Mine, Panama
This Financial Report is the Consolidated Financial Report of the Company consisting
of Lycopodium Limited and its subsidiaries. The Financial Report is presented in the
Australian currency.
Lycopodium Limited is a company limited by shares, incorporated and domiciled in
Australia. Its registered office and principal place of business is:
Lycopodium Limited
Level 5, 1 Adelaide Terrace
East Perth
Western Australia 6004
A description of the nature of the Company’s operations and its principal activities is
included in the Directors’ Report, which is not part of this Financial Report.
The Financial Report was authorised for issue by the Directors on 24 August 2021.
Via our website, we have ensured that our corporate reporting is timely and complete.
All announcements, Financial Reports and other information is available in the Investor
Relations section of our website.
lycopodium.com
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1
2021 Annual Financial Report
Directors’ Report
The Directors present their report to the members, together with the Audited Consolidated
Financial Statements of Lycopodium Limited (the ‘Company’) and its subsidiaries, for the
financial year ended 30 June 2021 and the Statement of Financial Position of the Group
as at 30 June 2021.
Revenue
$162.2m
NPAT
$14.2m
Total
dividend
25c
DIRECTORS
The following persons were Directors of Lycopodium
Limited during the financial year and up to the date of
this report:
Michael John Caratti
Peter De Leo
Rodney Lloyd Leonard
Robert Joseph Osmetti
Bruno Ruggiero
Karl Anthony Cicanese (appointed 23 November 2020)
Lawrence William Marshall
Steven John Micheil Chadwick
Peter Anthony Dawson (resigned 28 July 2020)
PRINCIPAL ACTIVITIES
The principal activities of the Group during the financial
year consisted of the provision of engineering and project
delivery services in the Resources, Infrastructure and
Industrial Processes sectors. There were no significant
changes in the nature of the Group’s principal activities
during the financial year.
DIVIDENDS
Dividends paid to members during the financial year were
as follows:
Yaouré Gold Project, Côte d’Ivoire
Final fully franked dividend for the year ended 30 June 2020 of 5.0 cents (2019:
15.0 cents) per fully paid share paid on 9 October 2020 (2019: 11 October 2019)
2021
$
2020
$
1,987,011
5,959,856
Interim fully franked dividend for the year ended 30 June 2021 of 10.0 cents (2020:
15.0 cents) per fully paid share paid on 8 April 2021 (2020: 7 April 2020)
3,974,022
5,959,856
5,961,033
11,919,712
In addition to the above dividends, since the end of the financial year the Directors have recommended the payment of a final fully
franked dividend of $5,961,034 (15.0 cents per fully paid share) to be paid on 8 October 2021 out of retained earnings at 30 June 2021
(2020: $1,987,011). This brings the total dividend declared for the year ended 30 June 2021 to 25.0 cents (2020: 20.0 cents).
Lycopodium Perth Office
Although the world as we know it has been upended
since the emergence of COVID, we have continued to service
our clients and their projects very effectively.
Review of Operations
Faced with the significant challenges presented by the onset of the global coronavirus pandemic during the
latter half of the financial year, our ability to continue to provide our clients with the high quality of service
they have come to expect from Lycopodium is a testament to the resilience and adaptability of our people.
FULL YEAR RESULTS
For the financial year ended 30 June 2021, Lycopodium generated revenue of $162.2 million and a net profit after tax of
$14.2 million. The Directors have resolved to pay a final dividend of 15 cents per share, which is in line with the dividend
policy. The total dividend for the year is 25 cents fully franked.
ACTIVITIES FOR THE PAST YEAR
In spite of the disruptions and uncertainties of the past year, we have continued to win work with existing and new clients
across our core operating sectors of Resources, Infrastructure and Industrial Processes. This has seen us welcome a
growing number of new people into the business in our Perth, Brisbane, Newcastle, Melbourne, Toronto, Manila and
Cape Town offices.
Our commitment to improving organisational connectedness to support greater collaboration across the Company has
seen the ongoing embedment of our Corporate Shared Services model during FY2021, supporting standardisation
across the business for key functions, including Finance, Information Technology and Business Systems, People,
Marketing and Communications and Legal. Furthermore, our Technical Assurance Group (TAG) has supported
consistency in approach across processes and procedures, enabling us to workshare effectively and fully leverage the
specialist expertise of our people, regardless of where they are geographically located.
Fundamental to our business success is attracting, engaging and retaining a high-performing, professional workforce.
Throughout the year, recruitment, talent management, leadership and succession planning and learning and development
have been key areas of focus to support this.
With a desire to foster a culture of enquiry and innovation, we have introduced a quarterly, internal innovation award.
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With a shift to a domestic manufacturing focus in response
to the pandemic, new opportunities in the industrial
processes sector have emerged, including for base
vaccine component production facilities. We are also
continuing to pursue opportunities in emerging markets,
including waste and recycling, water and wastewater
and hydrogen.
OPERATIONAL HIGHLIGHTS
As the pandemic continued to take hold during FY2021
we remained focused on the ongoing delivery of our
work in hand, in addition to securing new opportunities.
Pleasingly, and a testament to the resilience and
commitment of our people amidst the many challenges
COVID presented, project delivery remained on track and
during the period we secured a number of new awards.
Resources
In the past 12 months we have worked across most
major commodities, including iron ore, gold, copper, nickel,
lithium, graphite, diamonds, platinum and mineral sands.
These projects are spread across the globe, however
have predominantly been in Africa, Australia, Southeast
Asia and North and Central America.
The completion of Perseus’ Yaouré Gold Mine in
Côte d’Ivoire, delivered ahead of schedule and
under budget despite the pandemic, was a
significant achievement for the business. Full-scale
construction commenced in the September quarter
of 2019, with COVID-19 manifesting globally only a
few months later. Despite this, construction continued
throughout 2020 and the stretch target of first gold in
Yaouré Gold Project, Côte d’Ivoire
Review of Operations
December 2020 was achieved. Success was only
possible because of the commitment of our people and
their willingness to stay on site and keep delivering the
project, and through the strength of our relationship
with Perseus, working alongside them to drive
best-for-project outcomes.
In December 2020, we were awarded the contract to
provide Engineering and Procurement (EP) services for
Sandfire’s Motheo Copper Project in Botswana, following
our earlier completion of the Definitive Feasibility Study
(DFS) and Front End Engineering and Design (FEED). Since
award of the EP, the Construction Management (CM)
component of the project has been added to our scope,
making it full Engineering, Procurement and Construction
Management (EPCM) delivery.
In early January, we were awarded the contract to provide
EPCM services for Orezone’s Stage 1 Oxide Process Plant
for the Bomboré Gold Project in Burkina Faso. Drawing on
our specialist expertise in Australia, Canada and Burkina
Faso to deliver this significant project, the initial study
work and FEED for the project was undertaken out of
our Toronto office.
Having been involved in Newmont’s Ahafo North project
in Ghana since inception, including the initial study work,
we were awarded the contract to provide Engineering and
Procurement Management (EPM) services on the project
in April 2021 and have subsequently been awarded the full
EPCM services. The project has a significant infrastructure
component and represents the continuation of our long
involvement with Newmont since the late 1990’s.
During FY2021, our Toronto office further solidified
relationships with a number of key major clients based
in the Americas. In particular, the award by Roxgold for
the design, supply and project delivery of the processing
plant and associated infrastructure for its Séguéla Gold
Project in Côte d’Ivoire represented a major step forward
in realising our goal of building a global minerals hub.
Other projects being managed by our Toronto office that
are driving the growth and development of our Canadian
operations include the Boto Gold Project in Senegal for
IAMGOLD, for which we are providing EP services, and
ongoing work with Equinox Gold in the expansion of its
Los Filos Gold Mine in Mexico, having competed the FS
for the optimised design.
ADP Marine & Modular (ADP), our specialist subsidiary in
Cape Town, has been progressing a number of projects
for Anglo American and its subsidiary company De Beers
in South Africa, Namibia and Botswana. These include
the Venetia Mine Grease Plant Project EPC and several
advanced stage studies utilising dynamic simulation
expertise we have been developing out of Cape Town
over the past few years.
Throughout the year, Mondium, Lycopodium’s incorporated
joint venture with Monadelphous, has continued to deliver
the EPC scope for Rio Tinto’s Western Turner Syncline
Phase 2 iron ore project in the Pilbara region of Western
Australia, with completion of this significant project later
this year. Mondium is also continuing to deliver the EPC
contract for Talison Lithium’s Tailings Retreatment Project,
a critical element in the expansion of its Greenbushes
operation in the south-west of Western Australia.
Review of Operations
The award is presented to an individual or team who has
thought outside the square or challenged a convention,
introducing an idea that inspires us and has the potential to
positively impact the business.
During the year, we embarked on a new strategic initiative
to develop a more formalised footprint in the renewable
energy sector. This new service offering, Lycopodium
Energy, provides services to our existing and new clients
to ultimately achieve net zero carbon emissions by
developing and delivering a compliant decarbonisation
pathway that is specific to the needs of their organisation
and its stakeholders. While this is an early stage initiative,
we believe it will position us to play a meaningful role in this
growing sector in the future.
OUTLOOK
Our strategy at the onset of the pandemic was to focus
on our established relationships to secure ongoing work
with key clients. This strategy has served us well over the
past 18 months, with the award of a number of projects
on the back of completing earlier study works. We will
continue to cultivate existing and new relationships with
selected clients on the basis of establishing long-term,
trusted partnerships.
As the global economy continues to rebound from the
impact of the pandemic, the resources sector is showing
positive signs of recovery across a range of commodities,
with base metal prices returning to above pre-COVID levels
amid strong demand.
The value of iron ore reached an all-time high in
FY2021, as economic activity resurged in China and
other advanced economies. With ongoing tightness in
global iron ore supply and South American production
substantially impacted by the pandemic and other factors,
Australian producers were able to capitalise, paving the
way for ongoing new development and sustaining capital
opportunities to keep pace with demand. Investor demand
for gold has also remained high as a result of the prevailing
uncertainty stemming from the pandemic, and therefore
development activity remains strong.
Resources used in new and low emission technologies,
including the production of electric vehicles, will see
increasing demand for associated commodities. With a
focus on expanding Australia’s capability to participate
more broadly across the battery industries value chain,
development of copper, nickel cobalt, graphite, vanadium
and lithium resources and associated downstream
investment is anticipated.
In the infrastructure sector, we are continuing to
support clients within our core service offering across
rail infrastructure management (RIM), non-process
infrastructure and infrastructure related asset management.
Given the perpetual nature of this work, we have
developed long-term relationships with a core client base
and as these partnerships continue to grow and mature
over time, so too will the value-add we can offer, further
strengthening our position as a trusted partner.
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Review of Operations
The unit allows for large tonnage of run-of-mine (ROM)
material to be pumped cost effectively to processing
facilities. It is relocatable in a few hours and therefore
reduces tramming distance and costs for front end
loaders (FELs).
The technology represents an innovative OPEX saving
asset for clients in the mineral sands environment and
could also be used in other operations where sand or
fine overburden material can be slurried and pumped to
either a concentrator plant or a tailings facility. The cost
advantage to conventional tramming is substantial, with
the machine relocated weekly to keep FEL tramming
distance to a minimum thereby maintaining low OPEX and
enhancing client profitability.
The DMU is currently being manufactured and will be fully
trial assembled and tested in Cape Town in February 2022
and then disassembled and sent to site in Senegal for
commissioning in May 2022.
The DMU was the inaugural winner of the Lycopodium
Innovation Award.
Digital Twin
ADP is also leading brownfield optimisation work and
greenfield plant design using advanced digital technology
and engineering for process simulation and control.
The company has been working collaboratively with a
Tier 1 client over the past 18 months to develop a
connected digital twin using dynamic simulation and other
leading-edge integration software and specialist proprietary
applications (apps) tailored to specific minerals of interest.
The connected digital twin approach, whereby the plant
is engineered as a static digital twin (digital replica of
the asset) using augmented reality and virtual reality
technology, enables the static digital twin to be the primary
Dry Mining Unit
interface for operations and plant maintenance, linked to
the connected digital twin running in the background.
It enables operator training via a simulator and thereafter to
be connected into the live operational data via the client’s
Internet of Things global platform. We are working closely
with client in-house experts in advanced process control
and data analytics as well as with software experts from
the various software service providers in order to ensure
optimal, client-specific requirements are achieved.
Artificial intelligence software can be used on live
operational data to optimise the predictive capability of
the simulator, which is able to run predictive models many
times faster than real-time. The simulator is dynamically
linked to the mine plans and utilises geo-metallurgical data
to predict and optimise plant performance and blending.
This enables the client to maximise return on capital over
the life of the mine, taking market considerations into
account when optimising mine plans based on high fidelity
plant constraint modelling.
This software technology, combined with the specialist in-
house skills developed in its use, will provide Lycopodium
with the added benefit of facilitating far more extensive
and cost-effective options analysis and scenario planning
during the project study phases. This initiative will therefore
provide many of our clients with a vast array of project
whole-of-life benefits that will lead to better designs and
more efficient operations in the future.
ATATM Technology
ADP has designed and constructed a unit to implement
ATATM technology on a mine site. Developed by Soane
Energy, ATATM comprises three basic components – an
Activator polymer, a Tether polymer and an Anchor
particle – to convert mineral waste slurry into two discrete
products, being a dewatered solid that possesses
sufficient mechanical integrity for landfill, construction
and/or reclamation, and a clean water stream that can
Review of Operations
Parkes Level Crossing Upgrade, New South Wales
Infrastructure
In Infrastructure, we continue to work with some of
Australia’s largest rail operators, in both passenger and
freight rail systems.
Servicing greenfield and brownfield rail projects, we
provided design, engineering, technical advisory and
RIM services to various clients, including Pacific National,
Crawford Freightlines, New South Wales’ Country Regional
Network (CRN) and the Australian Rail Track Corporation’s
(ARTC) Inland Rail initiative.
We have also continued to support Main Roads Western
Australia (MRWA), providing Project Management services
for the Swan River Crossings (Fremantle Road and Rail)
project. This complex and challenging project involves
the interface of road, passenger and freight rail, maritime,
pedestrians and cyclists, together with heritage and
environmental considerations.
Industrial Processes
Our Industrial Processes business continues to
leverage its expertise in the provision of projects and
engineering services in the areas of specialty chemicals,
pharmaceutical, food and beverage production and heat/
mass transfer.
In the past 12 months our Industrial Processes team,
based in Melbourne, has provided specialist services
to Boeing in its aerospace component manufacturing
facilities, Kawasaki in Hydrogen related facilities,
Commonwealth Serum Laboratories for plasma and
blood products as well as base vaccine component
production facilities, Thales in defence and munitions,
Lamb Weston in food and beverage production, and
Energy Australia in the replacement of its gaseous
ammonia facility to an aqueous ammonia facility.
INNOVATION
Our talented and resourceful people are always thinking
of ways to do things better, more efficiently and more
sustainably.
As a business, we want to nurture and support our staff,
and therefore in 2021 we launched the Lycopodium
Innovation Award and the Innovation Hub on our intranet,
to recognise the great work of our people and share news
of the innovative work being done across the business.
Dry Mining Unit
The idea for the Dry Mining Unit (DMU) was first
conceptualised by the ADP team several years ago, finally
moving into the development stage following a competitive
global tender process undertaken over the past 12
months. Winning the rights to develop the concept into
reality, the technology will be implemented at the Grande
Côte mineral sands operation, the largest single dredge
mineral sands operation in the world, in Senegal.
The DMU represents the radical marriage of proven
underwater track crawler technology with high capacity
skid-mounted materials handling and sand pumping
systems, into a single 400 ton remotely controlled mobile
sand processing machine.
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be immediately reused on site. Recycling the clean water
significantly decreases the need for fresh water intake.
The unit is containerised and designed for easy relocation
for test work at different facilities. It receives slimes online
and measures and tests all process variables as the
sample is treated using the ATATM process. Designed to
cater for a wide range of feed geologies, it also simulates
various types of processes that are used in the full scale
plant. The unit is currently in test phase at the Orapa
diamond mine in Botswana and all process data currently
being recorded will be used to generate a design envelope
for the full system.
Orway IQ
Orway IQ (OIQ), a collaboration between Process IQ
and Orway Mineral Consultants (OMC), a wholly-owned
subsidiary of Lycopodium Limited, is continuing to roll
out its MillROC (Mill Remote Optimisation Consulting
and Coaching) platform. This online platform provides
customised data analysis and dashboards and is used
by OIQ’s specialist metallurgists and advanced process
control consultants to deliver real-time coaching and
implementation of continuous improvement.
Over the past 12 months, the OIQ business has increased
in size substantially and now services 15 projects in nine
countries around the world. Of note, Perseus’ Yaouré mine
is the first project to be purpose-built ‘MillROC ready’.
Based initially around comminution circuit optimisation,
OIQ is now looking to roll out similar services on two of
the projects the technology is currently being implemented
on, looking at the entire process plant. For one of these
projects, OIQ is part of a METS Ignited collaborative team
using automated carbon measurement and online gold
assaying instrumentation to provide real-time analysis of
a gold circuit, a first for the gold industry. Corporate level
dashboards are also being looked at for two clients, with
OIQ already monitoring all of their mineral processing
plants with MillROC.
As a consequence of the pandemic, the remote control
of operating plants, already a feature of the iron ore
industry, is likely to become even more widespread. OIQ
sees continual growth for the company based on its
remote control comminution circuit and expanded plant
optimisation services.
FBICRC
Australia provides approximately 40% of global lithium
concentrate but captures very little of the value extracted
from battery minerals along the full value chain.
As a key participant in the Future Battery Industries
Cooperative Research Centre (FBICRC) based at
Curtin University in Western Australia, we are
collaborating with researchers, governments and the
community to ensure Australia plays a leading role in the
global battery revolution, with the development of capability
that will enable participation more broadly across the
value chain.
Yaouré computer donation to the Youth Institution for Education,
Côte d’Ivoire
Of the 16 foundation projects being pursued under the
FBICRC, we are directly participating in five of these:
launched a COVID relief campaign to establish assistance
centres in metro cities across India.
Also in response to the pandemic, the development of
our electrically operated ventilator, known as LycoVent,
has taken a huge step forward in obtaining its Export Only
Listing for use outside of Australia. In partnership with
Australian Doctors for Africa (ADFA), we intend to make
the LycoVent available to African hospitals where the need
for such a device is considered significant, not only in
response to COVID but more broadly to supplement the
limited healthcare options available. We have donated two
machines to Africa, via ADFA, for usability trials to gain
feedback from the field, and following this further testing,
we will then be in a position to finalise the production
version. LycoVents will be donated to hospitals via the
supply pathway provided through ADFA.
Throughout the year, the Company also continued to
support various charitable initiatives championed by
our staff.
Lycopodium’s support of the Australia-Africa Minerals
& Energy Group (AAMEG), the peak body representing
Australian companies engaged in the development of
Africa’s resource industry, remains a fundamental element
of our industry engagement strategy.
ACKNOWLEDGEMENT
The past twelve months has seen us demonstrate the
strength of our global nature, our ability to collaborate
across offices and continue to deliver projects across the
world (even with the closure of international borders) and
has been a testament to the hard work and resilience of all
our people. On behalf of the Board of Directors, I sincerely
thank our staff for your commitment and effort.
I would also like to take this opportunity to thank our
clients for your ongoing confidence in us to progress your
projects. We pride ourselves on working in partnership with
you, with trust, integrity and respect.
•
Innovative Nickel and Cobalt Extraction Technologies
• Enhancing Lithium Extraction
•
•
Cathode Precursor Production Pilot Plant in
Western Australia
Chemical Processing of Vanadium and Manganese
Ores for Battery Materials
• Recycling, Reuse and Repurposing of Spent Batteries
Our commitment includes the provision of funding and
specialist expertise over the next five years.
HSE AND COMMUNITY
Delivering projects safely for our clients remains a
fundamental metric of success and our excellent safety
performance is a credit to our delivery teams on the
ground.
Having successfully completed our largest EP(C)
contract to-date in FY2021, being the Yaouré Gold
Project in Côte d’Ivoire, we have maintained our strong
safety performance during the year, with a Lost Time
Injury Frequency Rate (LTIFR) of zero for 1.9 million
manhours controlled. This significant achievement is
against a 7.6 Australian construction industry average.
Our engagement with the communities within which
we live and work is an integral part of how we like
to do business. In late FY2021, we established the
Lycopodium Foundation, to provide a formal vehicle
for the administration of our philanthropic, community
engagement and sponsorship activities.
A key pillar of our engagement strategy is to support
social development and education and therefore our
partnerships with the Murlpirrmarra Connection and
BASICS International remain ongoing. Murlpirrmarra
specifically supports the education, self-esteem, life skills
and employment prospects of young Aboriginal and
Torres Strait Islander people. BASICS International is a
non-government organisation (NGO) based in Ghana
committed to protecting the basic human rights of children
to education, shelter, food and safety. Also in Africa, we
supported the Youth Institution for Education, which is
focused on promoting youth leadership and preparing the
next generation of leaders for the Africa of tomorrow.
The computers used by our team on site at the Yaouré
Gold Project were donated to the Institution and used to
open a learning and integration centre for children and
young people in Abidjan, Côte d’Ivoire.
The impact of the pandemic has been felt by all of us
at some point, with various restrictions and lockdowns
imposed throughout the year, and therefore we again
provided financial contributions to the Salvation Army
and St Vincent de Paul Society to support families in
need in our community during this difficult time. With the
COVID crisis which unfolded in India during 2021, we also
supported the Child In Need Institute (CINI), an NGO which
8
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2021 Annual Financial Report2021 Annual Financial Report
Review of Operations
Information on Directors
A summary of consolidated revenues and results for the year by significant reporting segments is set out below:
Minerals - Asia Pacific
Minerals - North America
Minerals - Africa
Project services - Africa
Process Industries
Other
Intersegment eliminations
Unallocated
Total
Income tax expense
Profit for the year
Less: Loss/(profit) attributable to non-controlling interest
Profit attributable to owners of Lycopodium Ltd
Segment revenues
Segment results
2021
$
2020
$
2021
$
2020
$
88,202,707
144,757,210
13,909,841
19,890,050
20,307,900
27,417,590
33,077,346
30,232,067
747,888
7,388,070
6,371,702
5,361,958
1,868,798
5,824,933
51,596
558,868
26,638,281
27,737,493
4,284,542
(14,828,062)
(31,270,530)
-
(1,256,590)
(1,642,603)
3,612,893
237,766
607,601
-
641,518
526,820
(5,009,197)
(2,998,978)
162,175,648
211,134,310
21,489,381
18,450,139
(7,423,134)
(6,773,513)
14,066,247
11,676,626
133,202
127,327
14,199,449
11,803,953
MATTERS SUBSEQUENT TO THE END OF THE FINANCIAL YEAR
Since year end the directors have recommended the payment of a final dividend on ordinary shares in respect of the
2021 financial year. The total amount of dividend is $5,961,034 which represents a fully franked dividend of 15.0 cents
per fully paid ordinary share.
With the exception of the above, no other matter or circumstance has arisen since 30 June 2021 that has significantly
affected, or may significantly affect:
(a)
the Company’s operations in future financial years, or
(b)
the results of those operations in future financial years, or
(c)
the Company’s state of affairs in future financial years.
LIKELY DEVELOPMENTS AND EXPECTED RESULTS OF OPERATIONS
The Company will continue to provide engineering consultancy services as detailed above.
Refer to the Review of Operations section within the Directors’ Report for information regarding the likely developments
and expected results.
Environmental Regulation
The Company’s operations are not subject to significant environmental regulation under a law of the Commonwealth
or of a State or Territory in respect of its consulting activities.
Michael Caratti BE (Elec) (Hons)
Non-Executive Chairman
Experience and expertise
Former Managing Director of Lycopodium Minerals Pty Ltd, Mr Caratti has over 40 years’
experience in the mineral processing industry and has had a major role in the development
of the Company's risk management and quality control programs. Mr Caratti is a Director
of Orway Minerals Consultants (WA) Pty Ltd.
Length of service
25 October 2001 to present
Other current directorships
None
Former directorships in last 3 years None
Special responsibilities
Chairman of the Board
Chairman of the Corporate Governance Committee
Member of the Remuneration Committee
Interests in shares and options
Ordinary shares of Lycopodium Limited
9,109,367
Peter De Leo BE (Civ), CPEng, FIEAust
Managing Director
Experience and expertise
Mr De Leo has over 30 years’ experience in the construction and engineering fields.
Mr De Leo is the Managing Director of Lycopodium Limited and was previously the
Managing Director of Lycopodium Minerals Pty Ltd.
Length of service
1 February 2007 to present
Other current directorships
Non-Executive Director of Mondium Pty Ltd
Chairman of Australia-Africa Minerals and Energy Group Limited
Former directorships in last 3 years None
Special responsibilities
Member of the Corporate Governance Committee
Member of the Audit Committee
Member of the Risk Committee
Interests in shares and options
Ordinary shares of Lycopodium Limited
971,711
Rodney Leonard BE (Hons), MSc, MAusIMM
Non-Executive Director
Experience and expertise
Mr Leonard has over 30 years’ experience in the mineral processing industry and was the
Managing Director of Lycopodium Minerals Pty Ltd until to 30 June 2019 and is a Non-
Executive Director of ADP Holdings (Pty) Limited and Lycopodium Minerals Canada Ltd.
Length of service
25 October 2001 to present
Other current directorships
Non-Executive Director of West African Resources Limited
Former directorships in last 3 years None
Special responsibilities
Member of the Corporate Governance Committee
Member of the Audit Committee
Chairman of the Risk Committee
Interests in shares and options
Ordinary shares of Lycopodium Limited
1,054,215
Robert Osmetti BE (Civ), MIEAust, CPEng
Non-Executive Director
Experience and expertise
Mr Osmetti has 40 years’ experience in the project management and construction of
minerals, oil refining and manufacturing projects. Mr Osmetti is a Non-Executive Director of
Lycopodium Minerals Canada Ltd, Lycopodium Infrastructure Pty Ltd and was previously
the Managing Director of Mondium Pty Ltd.
Length of service
25 October 2001 to present
Other current directorships
Non-Executive Director of Quantum Graphite Limited
Non-Executive Director of Mondium Pty Ltd
Former directorships in last 3 years None
Special responsibilities
Member of the Corporate Governance Committee
Interests in shares and options
Ordinary shares of Lycopodium Limited
308,148
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2021 Annual Financial Report2021 Annual Financial Report
Information on Directors
Information on Directors
COMPANY SECRETARY
The Company Secretary is Ms Justine Campbell BBus (Acc and Fin), Chartered Accountant.
Ms Campbell is the Chief Financial Officer of Lycopodium Limited, and was appointed to the position of Company
Secretary on 30 September 2019. Ms Campbell has a strong track-record of financial leadership and transformation in
ASX-listed companies.
MEETINGS OF DIRECTORS
The numbers of meetings of the Company’s Board of Directors and of each Board Committee held during the year ended
30 June 2021, and the numbers of meetings attended by each Director were:
Number of Meetings Held
Xxxx
Michael Caratti
Peter De Leo
Rodney Leonard
Robert Osmetti
Bruno Ruggerio
Karl Cicanese***
Lawrence Marshall
Steven Chadwick
Board
11
11
11
11
11
11
7
11
10
* Not a member of the Committee
** By invitation
***Appointed to the Board on 23 November 2020
Board Committees
Remuneration
Risk
Audit
2
2
Number of Meetings Attended
*
2
2
*
*
*
2
*
2
2**
*
*
*
*
2
1
1
*
1
1
*
1
*
1
*
Bruno Ruggiero BE (Mech), Grad Dip Min Sc, Grad Cert Eng Tech, MIEAust
Executive Director
Experience and expertise
Mr Ruggiero has over 30 years’ experience in the minerals industry. He currently serves
as the Group Technical Director for Lycopodium Limited having overarching responsibility
for the Company’s technical knowledge base, capabilities and direction. Mr Ruggiero is a
Director of Lycopodium Minerals Pty Ltd.
Length of service
25 October 2001 to present
Other current directorships
Non-Executive Director of ECG Engineering Pty Ltd
Non-Executive Director of Quantum Graphite Limited
Former directorships in last 3 years None
Special responsibilities
Member of the Corporate Governance Committee
Member of the Risk Committee
Interests in shares and options
Ordinary shares of Lycopodium Limited
3,167,332
Karl Cicanese MBA
Executive Director
Experience and expertise
Mr Cicanese has over 25 years’ industry experience, with in-depth knowledge of the
Lycopodium business, having held a number of senior roles within Lycopodium Minerals
Pty Ltd, including General Manager, Group Manager and Project Director. Mr Cicanese
is currently Managing Director of Lycopodium Minerals Pty Ltd.
Length of service
23 November 2020 to present
Other current directorships
None
Former directorships in last 3 years None
Special responsibilities
Member of the Corporate Governance Committee
Interests in shares and options
Ordinary shares of Lycopodium Limited
200
Lawrence Marshall BBus (Acc), CPA
Non-Executive, Independent Director
Experience and expertise
Mr Marshall, in his role as the former Managing Director of Lycopodium Limited and with
over 40 years’ experience, has played a major role in the development of the Company’s
information, accounting, management and risk management systems.
Length of service
25 October 2001 to present
Other current directorships
None
Former directorships in last 3 years None
Special responsibilities
Chairman of the Audit Committee
Member of the Corporate Governance Committee
Member of the Remuneration Committee
Member of the Risk Committee
Interests in shares and options
Ordinary shares of Lycopodium Limited
992,332
Steven Chadwick BASc (Metallurgy), MAuslMM
Non-Executive, Independent Director
Experience and expertise
Mr Chadwick has over 40 years’ experience in the mining industry, incorporating
technical, operating and management roles, as well as a strong metallurgical background.
Mr Chadwick is 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.
Length of service
11 January 2016 to present
Other current directorships
Non-Executive Director of Liontown Resources Limited
Former directorships in last 3 years Non-Executive Director of Quantum Graphite Limited
Special responsibilities
Member of the Corporate Governance Committee
Member of the Remuneration Committee
Interests in shares and options
Ordinary shares of Lycopodium Limited
10,000
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2021 Annual Financial Report2021 Annual Financial Report
Remuneration Report - Audited
Remuneration Report - Audited
The Directors present the Lycopodium Limited 2021 remuneration report, outlining key aspects of our
remuneration policy and framework, and remuneration awarded this year.
DIRECTORS AND KEY MANAGEMENT PERSONNEL DISCLOSED
IN THIS REPORT
Name
Position
Michael Caratti
Peter De Leo
Rodney Leonard
Robert Osmetti
Bruno Ruggiero
Karl Cicanese
Peter Dawson
Lawrence Marshall
Steven Chadwick
Justine Campbell
Chairman, Non-executive Director
Managing Director
Non-executive Director
Non-executive Director
Executive Director
Executive Director (appointed 23 November 2020)
Executive Director (resigned on 28 July 2020)
Non-executive Director
Non-executive Director
Company Secretary and Chief Financial Officer
ROLE OF THE REMUNERATION COMMITTEE
The remuneration committee is primarily responsible for making recommendations on:
• Remuneration levels of executive Directors and other key management personnel,
• The over-arching executive remuneration framework and operation of any incentive plan, and
• Key performance indicators and performance hurdles for the executive team
The objective is to ensure that remuneration policies and structures are fair and competitive and aligned with the
long-term interests of the Company.
NON-EXECUTIVE DIRECTOR REMUNERATION POLICY
Fees and payments to non-executive Directors reflect the demands which are made on, and the responsibilities of,
the Directors. Non-executive Directors’ fees and payments are reviewed annually by the Board to ensure that they are
appropriate and in-line with the market.
Non-executive Directors are also paid an hourly rate for ad hoc services, as required.
Non-executive Directors do not receive performance-based pay.
DIRECTORS’ FEES
The current base fees were last reviewed with effect from 1 July 2021. The fees are inclusive of committee fees. Details on
Directors fees are disclosed under service agreements on page 16.
EXECUTIVE REMUNERATION POLICY AND FRAMEWORK
In determining executive remuneration, the Board aims to ensure that remuneration practices are:
• Competitive and reasonable, enabling the company to attract and retain key talent,
• Aligned to the company’s strategic and business objectives and the creation of shareholder value,
• Transparent, and
• Acceptable to shareholders
The executive remuneration framework has three components:
•
Fixed annual remuneration, including superannuation,
• Service bonus, and
• Equity
14
Fixed annual remuneration is structured as a total employment cost package which is delivered as a combination of
salary and prescribed non-financial benefits partly at the executive’s discretion. Fixed annual remuneration is reviewed
at a minimum annually to ensure the executive’s pay is competitive with the market. An executive’s pay is also reviewed
on promotion.
A service or senior management bonus may be provided to certain senior salaried employees payable annually, at the
discretion of the company.
VOTING AND COMMENTS MADE AT THE COMPANY’S
ANNUAL GENERAL MEETING
The remuneration report for the 2020 financial year was approved by shareholders during the AGM. The company did not
receive any specific feedback at the AGM or throughout the year on its remuneration practices.
COMPANY PERFORMANCE
The profit after income tax expense and basic earnings per share for the Company for the last five years is as follows:
Revenue ($)
Profit before income tax ($)
Income tax expense ($)
Profit after income tax ($)
Basic EPS (cents)
Basic EPS growth, year on year (%)
Fully franked dividends per share
(cents)
Change in share price * ($)
Return on equity (%)
2021
162,175,648
21,489,381
7,423,134
14,066,247
35.7
20.2%
25.0
2020
211,134,310
18,450,139
6,773,513
11,676,626
29.7
(28.4%)
20.0
2019
154,033,409
23,543,752
7,144,537
16,399,215
41.5
(10.9%)
30.0
2018 (^)
194,531,157
25,755,489
7,096,593
18,658,896
46.6
79.9%
30.0
2017
216,616,442
14,307,620
3,934,091
10,373,529
25.9
223.8%
18.0
0.64
17.00%
(0.08)
14.85%
0.19
20.66%
1.50
25.12%
1.05
15.53%
*calculated as the difference between the closing share price at the start and end of the respective financial years
^ adjustment on adoption of AASB 9
DETAILS OF REMUNERATION
The following table shows details of the remuneration expense recognised for the Company’s key management personnel
for the current and previous financial year measured in accordance with the requirements of the accounting standards.
Short-term employee benefits
Post-
employ-
ment
benefits
Share-
based
payments
Cash
salary
and fees
$
Cash
bonus
$
Non-
monetary
benefits
$
Super-
annuation
$
Rights
$
Total
$
Perfor-
mance
related
%
71,233
117,480
78,000
118,030
158,209
588,600
480,550
20,580
499,992
458,306
2,590,980
-
-
-
-
-
17,853
14,387
1,104
15,333
13,333
62,010
9,033
9,033
-
9,033
-
9,033
9,033
693
9,033
6,767
25,000
-
11,213
17,403
25,000
21,694
1,664
21,694
-
-
-
31,006
-
49,575
38,089
2,832
111,784
87,033
151,513
78,000
169,282
175,612
690,061
563,753
26,873
657,836
9,033
63,924
21,694
152,129
-
233,286
502,366
3,102,329
-
-
-
18.3
-
9.8
9.3
14.6
19.3
2.7
9.5
2021
Non-executive Directors
Michael Caratti
Lawrence Marshall
Steven Chadwick
Rodney Leonard***
Robert Osmetti
Executive Directors
Peter De Leo
Bruno Ruggiero
Peter Dawson*
Karl Cicanese**
Other key management personnel
Justine Campbell
Total key management personnel
compensation
* Represents remuneration from 1 July 2020 - 28 July 2020
** Appointed 23 November 2020
*** Share based payments relates to performance rights awarded in prior years
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2021 Annual Financial Report2021 Annual Financial Report
Remuneration Report - Audited
Remuneration Report - Audited
DETAILS OF REMUNERATION (CONTINUED)
The following table shows details of the remuneration expense recognised for the Company’s key management personnel
for the current and previous financial year measured in accordance with the requirements of the accounting standards.
Short-term employee benefits
Post-
employ-
ment
benefits
Share-
based
payments
Cash
salary
and fees
$
Cash
bonus
$
Non-
monetary
benefits
$
Super-
annuation
$
Rights
$
Total
$
Perfor-
mance
related
%
71,233
110,715
78,000
106,850
69,758
588,600
480,054
477,710
-
-
-
35,388
31,583
42,917
34,583
34,583
373,390
62,583
2,418,893
-
32,083
211,137
12,631
12,631
-
12,631
3,158
12,631
12,631
12,631
7,158
-
86,102
6,767
25,000
-
13,513
25,000
25,000
24,999
21,003
-
-
-
18,264
-
20,228
16,300
16,300
90,631
148,346
78,000
186,646
129,499
689,376
568,567
562,227
18,521
25,000
184,803
-
-
71,092
399,069
119,666
2,972,027
-
-
-
9.8
-
2.9
2.9
2.9
-
-
2.4
2020
Non-executive Directors
Michael Caratti
Lawrence Marshall
Steven Chadwick
Rodney Leonard*
Robert Osmetti
Executive Directors
Peter De Leo
Bruno Ruggiero
Peter Dawson
Other key management personnel
Justine Campbell**
Keith Bakker***
Total key management personnel
compensation
* Payment includes prior year entitlements
** Represents remuneration from 9 September 2019 to 30 June 2020
*** Represents remuneration from 1 July 2019 to 30 September 2019
SERVICE AGREEMENTS
Remuneration and other terms of employment for the Directors and key management personnel are formalised in
employment contracts. Each contract deals with fixed annual remuneration. Other major provisions of the agreements
relating to remuneration are set out below.
All employment contracts with Directors and executives may be terminated by either party with one month’s notice.
None of the directors or executives are provided with termination benefits.
Name
Michael Caratti,
Chairman and Non-executive Director
Rodney Leonard,
Non-executive Director
Robert Osmetti,
Non-executive Director
Lawrence Marshall,
Non-executive Director
Steven Chadwick,
Non-executive Director
Peter De Leo,
Managing Director
Bruno Ruggiero,
Executive Director
Karl Cicanese
Executive Director
Justine Campbell,
Company Secretary and Chief Financial Officer
Term of
agreement
Fixed Remuneration including superannuation*
No fixed term Directors fee of $81,500 p.a.
No fixed term Fixed hourly rate of $234.72
Directors fee of $81,500 p.a.
No fixed term Fixed hourly rate of $234.72
Directors fee of $81,500 p.a.
No fixed term Fixed hourly rate of $234.72
Directors fee of $81,500 p.a.
No fixed term Directors fee of $81,500 p.a.
No fixed term $559,300 p.a.
Directors fee of $81,500 p.a.
No fixed term 450,700 p.a.
Directors fee of $81,500 p.a.
No fixed term $505,000 p.a.
Directors fee of $81,500 p.a.
No fixed term $500,000 p.a.
* Fixed remuneration payable from 1 July 2021 and reviewed annually by the Remuneration Committee
SHARE-BASED COMPENSATION
Incentive Performance Rights Plan
Performance rights were granted to certain Executive Directors as approved at the Annual General Meeting on
19 November 2020. The rights were designed to give incentive to the Executive Directors to provide dedicated and
ongoing commitment and effort to the company and aligning the interest of both employees and shareholders.
Further information on rights over ordinary shares on issue is set out in note 35 to the financial statements.
SENIOR MANAGER SHARE ACQUISITION PLAN
Interest free loans were provided to eligible senior managers to acquire shares in Lycopodium Limited under the
Senior Manager Share Acquisition Plan. The plan was designed to provide alignment of the senior managers with the
shareholders of the company by assisting the senior managers to acquire shares in Lycopodium Limited under the plan.
None of the Directors of Lycopodium Limited are eligible to participate in this plan.
Further information on the plan is set out in note 1 (ac) to the financial statements.
EQUITY INSTRUMENT DISCLOSURES RELATING TO
KEY MANAGEMENT PERSONNEL
The table below shows the number of:
(i) Rights Holdings
The numbers of rights in the Company held during the financial year by Directors of Lycopodium Limited and other key
management personnel of the Company, including their personally related parties, over ordinary shares in the Company
are set out below.
2021
Directors of Lycopodium Limited
Peter De Leo
Rodney Leonard
Bruno Ruggiero
Peter Dawson**
Karl Cicanese***
Balance
at start of
the year
Granted
as
compen-
sation (*)
26,265
23,715
21,165
21,165
69,679
17,584
-
12,023
-
15,102
Exercised
Other
changes
Balance
at end of
the year
Vested
and exer-
cisable
Unvested
-
-
-
-
-
-
-
-
(21,165)
-
43,849
23,715
33,188
-
84,781
-
-
-
-
-
43,849
23,715
33,188
-
84,781
*Granted under the Incentive Performance Rights Plan. Refer to Note 35.
** Performance rights held from 1July to 28 July 2020
*** Appointed 23 November 2020
2020
Directors of Lycopodium Limited
Peter De Leo
Rodney Leonard
Bruno Ruggiero
Peter Dawson
Balance
at start of
the year
Granted
as
compen-
sation (*)
Exercised
Other
changes
Balance
at end of
the year
Vested
and exer-
cisable
Unvested
-
-
-
-
26,265
23,715
21,165
21,165
-
-
-
-
-
-
-
-
26,265
23,715
21,165
21,165
-
-
-
-
26,265
23,715
21,165
21,165
*Granted under the Incentive Performance Rights Plan. Refer to Note 35.
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2021 Annual Financial Report2021 Annual Financial Report
Remuneration Report - Audited
EQUITY INSTRUMENT DISCLOSURES RELATING TO KEY MANAGEMENT
PERSONNEL (CONTINUED)
(ii) Share Holdings
The numbers of shares in the Company held during the financial year by Directors of Lycopodium Limited and other
key management personnel of the Company, including their personally related parties, are set out below. There were no
shares granted during the reporting period as compensation.
2021
Directors of Lycopodium Limited
Ordinary shares
Michael Caratti
Peter De Leo
Rodney Leonard
Robert Osmetti
Bruno Ruggiero
Lawrence Marshall
Steven Chadwick
Karl Cicanese*
* Appointed 23 November 2020
Balance at the
start of the year
Received during
the year on the
exercise of options
Other changes
during the year
Balance at end
of the year
9,104,367
971,711
1,154,215
308,148
3,167,332
992,332
10,000
200
-
-
-
-
-
-
-
-
5,000
-
(100,000)
-
-
-
-
-
9,109,367
971,711
1,054,215
308,148
3,167,332
992,332
10,000
200
LOANS TO KEY MANAGEMENT PERSONNEL
Details of loans made to Directors of Lycopodium Limited and other key management personnel of the Company,
including their personally related parties, are set out below.
(i) Aggregates for key management personnel
2021
2020
Balance at the
start of the
year
$
Interest paid
and payable
for the year
$
Interest not
charged
$
Balance at end
of the year
$
-
27,107
-
-
-
-
-
-
Number in
Company at
the end of
the year
-
-
Loans outstanding at the end of the prior year include a loan to a key management personnel under the senior manager
share acquisition plan.
All other loans to key management personnel are short-term advances in nature and are insignificant.
No write-downs or allowances for doubtful receivables have been recognised in relation to any loans made to key
management personnel.
End of Remuneration Report
SHARES UNDER PERFORMANCE RIGHTS
Unissued ordinary shares of Lycopodium Limited at the date of this report are as follows:
Date performance rights issued
1 July 2019
28 November 2019
11 December 2020
Expiry date
30 June 2024
26 November 2024
10 December 2025
Issue price
of shares
$-
$-
$-
Number
50,000
168,320
107,168
INSURANCE OF OFFICERS
During the financial year, Lycopodium Limited took out insurance cover for the Directors, secretaries and senior officers of the
company and its controlled entities.
The liabilities insured are costs and expenses that may be incurred in defending civil or criminal proceedings that may be brought
against the officers in their capacity as officers of entities in the Company, and any other payments arising from liabilities incurred
by the officers in connection with such proceedings, other than where such liabilities arise out of conduct involving a wilful breach
of duty by the officers or the improper use by the officers of their position or of information to gain advantage for themselves or
someone else or to cause detriment to the company.
The directors have not included specific details of the premium paid as such disclosure is prohibited under the terms of the
contract.
INDEMNITY OF AUDITORS
Lycopodium Limited has agreed to indemnify their auditors, RSM Australia Partners, to the extent permitted by law, against any
claim by a third party arising from Lycopodium Limited’s breach of their agreement. The indemnity stipulates that Lycopodium
Limited will meet the full amount of any such liabilities including a reasonable amount of legal costs.
PROCEEDINGS ON BEHALF OF THE COMPANY
No person has applied to the Court under section 237 of the Corporations Act 2001 for leave to bring proceedings on behalf
of the Company, or to intervene in any proceedings to which the Company is a party, for the purpose of taking responsibility on
behalf of the Company for all or part of those proceedings.
NON-AUDIT SERVICES
Details of the amounts paid or payable to the auditor for non-audit services provided during the financial year by the auditor are
outlined in note 27 to the financial statements.
The Directors are satisfied that the provision of non-audit services during the financial year, by the auditor (or by another
person or firm on the auditor’s behalf), is compatible with the general standard of independence for auditors imposed by the
Corporations Act 2001.
The Directors are of the opinion that the services as disclosed in note 27 to the financial statements do not compromise the
external auditor’s independence requirements of the Corporations Act 2001 for the following reasons:
•
•
all non-audit services have been reviewed and approved to ensure that they do not impact the integrity and
objectivity of the auditor; and
none of the services undermine the general principles relating to auditor independence as set out in APES 110 Code
of Ethics for Professional Accountants issued by the Accounting Professional and Ethical Standards Board, including
reviewing or auditing the auditor’s own work, acting in a management or decision-making capacity for the company,
acting as advocate for the company or jointly sharing economic risks and rewards.
OFFICERS OF THE COMPANY WHO ARE FORMER PARTNERS OF
RSM AUSTRALIA PARTNERS
There are no officers of the company who are former partners of RSM Australia Partners
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2021 Annual Financial Report2021 Annual Financial Report
AUDITOR’S INDEPENDENCE DECLARATION
A copy of the auditor’s independence declaration as required under section 307C of the Corporations Act 2001 is set out
immediately after this directors’ report.
AUDITOR
RSM Australia Partners continues in office in accordance with section 327 of the Corporations Act 2001.
This report is made in accordance with a resolution of Directors, pursuant to section 298(2)(a) of the Corporations Act 2001.
On behalf of the Directors
Auditor’s Independence Declaration
Peter De Leo
Managing Director
Lycopodium Limited
Perth
24 August 2021
RSM Australia Partners
Level 32, Exchange Tower
2 The Esplanade Perth WA 6000
GPO Box R1253 Perth WA 6844
T +61 (0) 8 9261 9100
F +61 (0) 8 9261 9111
www.rsm.com.au
AUDITOR’S INDEPENDENCE DECLARATION
As lead auditor for the audit of the financial report of Lycopodium Limited for the year ended 30 June 2021, I
declare that, to the best of my knowledge and belief, there have been no contraventions of:
(i)
(ii)
the auditor independence requirements of the Corporations Act 2001 in relation to the audit; and
any applicable code of professional conduct in relation to the audit.
RSM AUSTRALIA PARTNERS
Perth, WA
Dated: 24 August 2021
JAMES KOMNINOS
Partner
20
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THE POWER OF BEING UNDERSTOOD
AUDIT | TAX | CONSULTING
RSM Australia Partners is a member of the RSM network and trades as RSM. RSM is the trading name used by the members of the RSM network. Each member of the RSM network is an independent
accounting and consulting firm which practices in its own right. The RSM network is not itself a separate legal entity in any jurisdiction.
RSM Australia Partners ABN 36 965 185 036
Liability limited by a scheme approved under Professional Standards Legislation
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2021 Annual Financial Report2021 Annual Financial Report
Corporate Governance
Statement
The Board of Directors of Lycopodium Limited is responsible for the overall corporate governance of the
Company and its subsidiary companies. The Board governs all matters relating to the strategic direction,
policies, practices, management and operations of the Company and its subsidiaries, with the aim of
protecting the interests of shareholders and other stakeholders, including employees, clients and suppliers,
and creating value for them.
The Board has implemented the Corporate Governance Principles and Recommendations of the ASX Corporate
Governance Council to the extent considered appropriate for the size and nature of the Company’s current operations.
The Company has adopted a Corporate Governance Framework which provides the written terms of reference for the
Company’s corporate governance duties. The Company has in place charters, policies and procedures which support
the framework to ensure a high standard of governance is maintained. Lycopodium’s Corporate Governance Statement,
Board and Sub-Committee charters and the Company’s governance policies, are published on the Company’s website:
lycopodium.com/investor-relations/corporate-governance
Yaouré Gold Project,
Côte d’Ivoire
22
2021 Annual Financial Report
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2021 Annual Financial Report
Financial Report
Consolidated Statement of Profit or Loss and Other Comprehensive Income 26
27
28
29
67
68
68
69
69
70
70
71
72
72
72
74
74
75
76
76
78
Consolidated Statement of Financial Position
Consolidated Statement of Changes in Equity
Consolidated Statement of Cash Flows
Notes to the Financial Statements
20 Non-Current Liabilities
Deferred Tax Liabilities
21 Non-Current Liabilities
Provisions
22 Contributed Equity
23 Reserves
24 Retained Earnings
25 Non-Controlling Interests
26 Dividends
27 Remuneration of Auditors
28 Contingencies
29 Commitments
30 Related Party Transactions
31 Subsidiaries
32 Events Occuring After
Reporting Period
33 Reconciliation of Profit After
Income Tax to Net Cash Inflow
From Operating Activities
34 Earnings Per Share
35 Share-Based Payments
36 Parent Entity Financial Information
1 Summary of Significant
Accounting Policies
2 Financial Risk Management
3 Critical Accounting Estimates
and Assumptions
4 Segment Information
5 Revenue
6 Expenses
7
Income Tax Expense
8 Current Assets
Cash and Cash Equivalent
9 Current Assets
Trade and Other Receivables
10 Current Assets
Other Current Assets
11 Financial Assets and
Financial Liabilities
12 Non-Current Assets
Other Receivables
13 Non-Current Assets
Investments Accounted for Using
the Equity Method
14 Non-Current Assets
Property, Plant and Equipment
15 Non-Current Assets
Right-of-Use-Assets
16 Non-Current Assets
Deferred Tax Assets
17 Non-Current Assets
Intangible Assets
18 Current Liabilities
Trade and Other Payables
19 Current Liabilities
Provisions
30
43
46
47
51
52
52
54
54
55
56
59
59
61
62
62
64
66
67
Gemalla Concrete Sleeper Insertion Project,
New South Wales
24
2021 Annual Financial Report
2021 Annual Financial Report
25
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Consolidated Statement of
Profit or Loss and Other Comprehensive Income
Consolidated Statement of
Financial Position
For the year ended 30 June 2021
As at 30 June 2021
Notes
5(a)
5(c)
6
6
19
6
7
Revenue from contracts with customers
Interest income
Other income
Total income
Employee benefits expense
Depreciation and amortisation expense
Project expenses
Equipment and materials
Contractors
Occupancy expense
Other expenses
Warranty provision (expenses)/reversal
Finance costs
Share of net profit of associates and joint ventures accounted for using
the equity method
Profit before income tax
Income tax expense
Profit for the year
Profit attributable to:
Owners of Lycopodium Limited
Non-controlling interests
Profit for the year
Other comprehensive income
Items that may be reclassified to profit or loss
Foreign currency translation
Total comprehensive income for the year
Other comprehensive income for the year is attributable to:
Owners of Lycopodium Limited
Non-controlling interests
Total comprehensive income for the year
2021
$
158,062,505
551,307
3,561,836
162,175,648
(61,759,749)
(4,784,787)
(3,560,682)
(19,157,291)
(25,806,496)
(1,907,537)
(13,013,638)
(11,022,306)
(816,789)
1,143,008
21,489,381
(7,423,134)
14,066,247
14,199,449
(133,202)
14,066,247
1,209,198
15,275,445
15,408,647
(133,202)
15,275,445
2020
$
206,655,815
1,521,139
2,957,356
211,134,310
(66,963,814)
(8,031,347)
(4,964,224)
(71,057,575)
(31,302,499)
(1,227,254)
(12,114,932)
681,875
(614,144)
2,909,743
18,450,139
(6,773,513)
11,676,626
11,803,953
(127,327)
11,676,626
(1,459,227)
10,217,399
10,344,726
(127,327)
10,217,399
Earnings per share for profit attributable to the ordinary
equity holders of the Company:
Basic earnings per share
Diluted earnings per share
Cents
Cents
34(a)
34(b)
35.7
35.5
29.7
29.6
The above consolidated statement of profit or loss and other comprehensive income should be read in conjunction with the
accompanying notes.
ASSETS
Current assets
Cash and cash equivalents
Trade and other receivables
Inventories
Current tax receivables
Other current assets
Total current assets
Non-current assets
Investments in listed equities
Property, plant and equipment
Right-of-use assets
Intangible assets
Other receivables
Deferred tax assets
Investments accounted for using the equity method
Total non-current assets
Total assets
LIABILITIES
Current liabilities
Trade and other payables
Contract and other liabilities
Borrowings
Lease liabilities
Current tax liabilities
Provisions
Total current liabilities
Non-current liabilities
Borrowings
Provisions
Lease liabilities
Total non-current liabilities
Total liabilities
Net assets
EQUITY
Contributed equity
Reserves
Retained earnings
Parent entity interest
Non-controlling interests
Total equity
Notes
2021
$
2020
$
8
9
10
11(a)
14
15
17
12
16
13
18
5(b)
11(b)
11(a)
19
11(b)
21
11(a)
22
23
24
25
76,841,139
43,887,117
1,540,415
1,971,240
2,482,762
126,722,673
739,920
4,671,757
14,925,280
6,743,650
189,413
6,189,450
3,870,307
37,329,777
164,052,450
22,971,867
17,055,363
760,274
2,669,183
4,941,195
13,340,431
61,738,313
1,404,749
165,864
13,069,705
14,640,318
76,378,631
87,673,819
20,854,574
(229,936)
67,758,811
88,383,449
(709,630)
87,673,819
102,888,489
26,916,009
1,105,323
868,107
2,515,188
134,293,116
886,377
3,193,156
3,000,988
6,838,730
145,092
3,761,661
3,530,923
21,356,927
155,650,043
23,211,501
47,657,403
304,157
1,564,378
833,745
2,318,125
75,889,309
164,255
128,135
1,625,723
1,918,113
77,807,422
77,842,621
20,823,772
(1,846,849)
59,520,395
78,497,318
(654,697)
77,842,621
The above consolidated balance sheet should be read in conjunction with the accompanying notes.
26
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2021 Annual Financial Report2021 Annual Financial Report
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Consolidated Statement of
Cash Flows
For the year ended 30 June 2021
Cash flows from operating activities
Receipts from customers (inclusive of GST)
Payments to suppliers and employees (inclusive of GST)
Interest received
Income taxes paid
Net cash (outflow)/inflow from operating activities
Cash flows from investing activities
Dividends received from joint ventures and associate
Payments for property, plant and equipment
Proceeds from sale of property, plant and equipment
Payments for intangible assets
Proceeds from investments in listed equities
Net cash inflow/(outflow) from investing activities
Cash flows from financing activities
Proceeds from issue of shares
Proceeds from borrowings
Repayments of borrowings
Proceeds from repayment of loans under the senior manager share
acquisition plan
Repayments of hire purchase liabilities
Loans (advanced)/repaid to joint ventures and associates
Reduction of lease liabilities
Dividends paid to Company's shareholders
Net cash outflow from financing activities
Net (decrease)/increase in cash and cash equivalents
Cash and cash equivalents at the beginning of the financial year
Effects of exchange rate changes on cash and cash equivalents
Cash and cash equivalents at the end of financial year
Notes
2021
$
2020
$
116,872,692
(126,078,673)
(9,205,981)
520,152
(5,031,728)
(13,717,557)
803,623
(2,667,041)
10,358
(238,608)
288,458
(1,803,210)
30,802
4,197,273
(2,367,229)
35,679
(140,225)
(4,000,000)
(3,531,048)
(5,961,033)
(11,735,781)
(27,256,548)
102,888,489
1,209,198
76,841,139
256,143,954
(190,286,692)
65,857,262
1,558,400
(5,226,638)
62,189,024
771,289
(472,259)
-
(394,963)
-
(95,933)
-
2,150,280
(2,019,329)
96,161
(582,210)
820,000
(6,741,614)
(11,919,711)
(18,196,423)
43,896,668
60,451,048
(1,459,227)
102,888,489
33
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The above consolidated statement of cash flows should be read in conjunction with the accompanying notes.
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2021 Annual Financial Report2021 Annual Financial Report
Notes to the Financial Statements
Notes to the Financial Statements
30 June 2021
30 June 2021
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The principal accounting policies adopted in the preparation of this consolidated financial report are set out below.
These policies have been consistently applied to all the years presented, unless otherwise stated. The financial report
comprises the financial report for the Company consisting of Lycopodium Limited and its subsidiaries.
(a) Basis of Preparation
This general purpose financial report has been prepared in accordance with Australian Accounting Standards and
Interpretations issued by the Australian Accounting Standards Board and the Corporations Act 2001. Lycopodium
Limited is a for-profit entity for the purpose of preparing the financial report. The consolidated financial report of the
Lycopodium Limited group complies with International Financial Reporting Standards (IFRS) as issued by the International
Accounting Standards Board (IASB).
(i) New or Amended Accounting Standards and Interpretations Adopted
The Group has adopted all of the new or amended Accounting Standards and Interpretations issued by the Australian
Accounting Standards Board (‘AASB’) that are mandatory for the current reporting period.
Any new or amended Accounting Standards or Interpretations that are not yet mandatory have not been early adopted.
The following Accounting Standards and Interpretations are most relevant to the Group:
Conceptual Framework for Financial Reporting (Conceptual Framework)
The consolidated entity has adopted the revised Conceptual Framework from 1 July 2020. The Conceptual Framework
contains new definition and recognition criteria as well as new guidance on measurement that affects several Accounting
Standards, but it has not had a material impact on the consolidated entity’s financial statements.
(ii) Historical Cost Convention
These financial statements have been prepared under the historical cost convention, as modified by the measurement of
financial assets/liabilities at fair value through profit and loss.
(iii) Critical Accounting Estimates
The preparation of the Financial Report requires the use of certain critical accounting estimates. It also requires
management to exercise its judgement in the process of applying the Group’s accounting policies. The areas involving
a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the Financial
Report, are disclosed in note 3.
(b) Principles of Consolidation
Subsidiaries
(i)
Subsidiaries are all entities (including structured entities) over which the Group has control. The Group controls an entity
when the Group is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to
affect those returns through its power to direct the activities of the entity. Subsidiaries are fully consolidated from the date
on which control is transferred to the Group. They are deconsolidated from the date that control ceases.
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(b) Principles of Consolidation (continued)
Subsidiaries (continued)
(i)
The acquisition method of accounting is used to account for business combinations by the Group (refer to note 1(h)).
Intercompany transactions, balances and unrealised gains on transactions between entities in the Group are eliminated.
Unrealised losses are also eliminated unless the transaction provides evidence of the impairment of the asset transferred.
Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted
by the Group.
Non-controlling interests in the results and equity of subsidiaries are shown separately in the Consolidated Statement of
Comprehensive Income, Consolidated Statement of Changes in Equity and Consolidated Statement of Financial Position,
respectively.
(ii) Employee Share Trust
The Group has formed a trust to administer the Group’s employee share scheme. This trust is consolidated, as the
substance of the relationship is that the trust is controlled by the Group.
(iii) Joint Arrangements
Under AASB 11 Joint Arrangements investments in joint arrangements are classified as either joint operations or joint
ventures. The classification depends on the contractual rights and obligations of each investor, rather than legal structure
of the joint arrangement. Lycopodium Limited has joint venture arrangements.
(iv) Joint Ventures
Interest in joint ventures are accounted for using the equity method (see (v) below), after initially being recognised at cost
in the Consolidated Statement of Financial Position.
(v) Associates
Associates are all entities over which the Group has significant influence but not control or joint control. This is generally
the case where the Group holds between 20% and 50% of the voting rights. Investments in associates are accounted for
using the equity method of accounting (see (vi) below), after initially being recognised at cost.
(vi) Equity Method
Under the equity method of accounting, the investments are initially recognised at cost and adjusted thereafter to
recognise the Group’s share of the post-acquisition profits or losses of the investee, and the Group’s share of movements
in other comprehensive income of the investee. Dividends received or receivable from associates and joint ventures are
recognised as a reduction in the carrying amount of the investment.
When the Group’s share of losses in an equity-accounted investment equals or exceeds its interest in the entity,
including any other unsecured long-term receivables, the Group does not recognise further losses, unless it has incurred
obligations or made payments on behalf of the other entity.
Unrealised gains on transactions between the Group and its associates and joint ventures are eliminated to the extent
of the Group’s interest in these entities. Unrealised losses are also eliminated unless the transactions provides evidence
of an impairment of the asset transferred. Accounting policies of equity accounted investees have been changed where
necessary to ensure consistency with the policies adopted by the Group.
The Group treats transactions with non-controlling interests that do not result in a loss of control as transactions with
equity owners of the Group. A change in ownership interest results in an adjustment between the carrying amounts of
the controlling and non-controlling interests to reflect their relative interests in the subsidiary. Any difference between the
amount of the adjustment to non-controlling interests and any consideration paid or received is recognised in a separate
reserve within equity attributed to owners of Lycopodium Limited.
30
31
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2021 Annual Financial Report2021 Annual Financial Report
Notes to the Financial Statements
Notes to the Financial Statements
30 June 2021
30 June 2021
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(b) Principles of Consolidation (continued)
(vii) Changes in Ownership Interests
When the Group ceases to have control, joint control or significant influence, any retained interest in the entity is
remeasured to its fair value with the change in carrying amount recognised in profit or loss. The fair value becomes the
initial carrying amount for the purposes of subsequently accounting for the retained interest as an associate, joint venture
or financial asset. In addition, any amounts previously recognised in other comprehensive income in respect of that entity
are accounted for as if the Group had directly disposed of the related assets or liabilities. This may mean that amounts
previously recognised in other comprehensive income are reclassified to profit or loss.
If the ownership interest in a joint venture or an associate is reduced but joint control or significant influence is retained,
only a proportionate share of the amounts previously recognised in other comprehensive income are reclassified to
profit or loss where appropriate.
(c) Segment Reporting
Operating segments are reported in a manner consistent with the internal reporting provided to the chief
operating decision maker. The chief operating decision maker, who is responsible for allocating resources and
assessing performance of the operating segments, has been identified as the Board of Directors.
(d) Revenue and Other Income Recognition
Revenue from Contracts with Customers
The Group recognises revenue on an ‘over time’ basis. This applies to the two services of which the
Group provides:
• Engineering and related services
• Construction Contracts
To determine whether to recognise revenue, the Group follows a 5-step process:
(1)
Identifying the contract with a customer
(2)
Identifying the performance obligations
(3) Determining the transaction price
(4) Allocating the transaction price to the performance obligations
(5) Recognising revenue when/as performance obligation(s) are satisfied
For work being performed in the completion of contracts with fixed prices, the customer controls the assets as it is
created or enhanced. Progress towards completion of the contract is measured according to the proportion of contract
costs incurred for work performed to date relative to the estimate total contract costs.
When it is probable that total contract costs will exceed total contract revenue, the expected loss is recognised as an
expense immediately.
Where recognised revenues exceed progress billings, the surplus is shown in Contract Assets. For contracts where
progress billings exceed recognised revenues, the surplus is shown as Contract Liabilities.
Certain customer contracts are man-hours and expense based. In these circumstances, revenue is recognised over time
as the Group has a right to consideration from the customer in an amount that corresponds directly with the value to
the customer of the entity’s performance completed at the time of billing. The Group therefore recognises revenue in the
amount to which the Group has the right to invoice.
(d) Revenue and Other Income Recognition (continued)
Interest and Other Income
Interest revenue is recognised on an accrual basis.
Dividend income is recognised when the dividend is declared.
Rental income is recognised on a straight line basis over the term of the operating lease.
(e) Foreign Currency Translation
Functional and Presentation Currency
(i)
Items included in the Financial Report of each of the Group’s entities are measured using the currency of the primary
economic environment in which the entity operates (‘the functional currency’). The Consolidated Financial Report are
presented in Australian dollars, which is Lycopodium Limited’s functional and presentation currency.
(ii) Transactions and Balances
Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates
of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the
translation at year end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised
in profit and loss.
Translation differences on financial assets and liabilities carried at fair value are reported as part of the fair value gain or
loss. Translation differences on non-monetary assets and liabilities such as equities held at fair value through profit or loss
are recognised in profit or loss as part of the fair value gain or loss. Translation differences on non-monetary assets such
as equities classified as available-for-sale financial assets are recognised in other comprehensive income.
(iii) Consolidated Entities
The results and financial position of foreign operations (none of which has the currency of a hyperinflationary economy)
that have a functional currency different from the presentation currency are translated into the presentation currency as
follows:
•
•
assets and liabilities for each Statement of Financial Position presented are translated at the closing rate at the date
of that Statement of Financial Position
income and expenses for each Statement of Comprehensive Income are translated at average exchange rates
(unless this is not a reasonable approximation of the cumulative effect of the rates prevailing on the transaction dates,
in which case income and expenses are translated at the dates of the transactions), and
•
all resulting exchange differences are recognised in other comprehensive income.
On consolidation, exchange differences arising from the translation of any net investment in foreign operations, and
of borrowings and other financial instruments designated as hedges of such investments, are recognised in other
comprehensive income. When a foreign operation is sold or any borrowings forming part of the net investment are repaid,
associated exchange differences are recognised in the profit and loss, as part of the gain or loss on sale where applicable.
Income Tax
(f)
The income tax expense or credit for the year is the tax payable on the current year’s taxable income based on the
applicable income tax rate for each jurisdiction adjusted by changes in deferred tax assets and liabilities attributable to
temporary differences and to unused tax losses.
The current income tax charge is calculated on the basis of the tax laws enacted or substantively enacted at the end of
the reporting year in the countries where the Company and its subsidiaries and associates operate and generate taxable
income. Management periodically evaluates positions taken in tax returns with respect to situations in which applicable
tax regulation is subject to interpretation. It establishes provisions where appropriate on the basis of amounts expected to
be paid to the tax authorities.
Deferred income tax is provided in full, using the liability method, on temporary differences arising between the tax bases
of assets and liabilities and their carrying amounts in the Consolidated Financial Report. However, deferred tax liabilities
are not recognised if they arise from the initial recognition of goodwill. Deferred income tax is also not accounted for if it
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2021 Annual Financial Report2021 Annual Financial Report
Notes to the Financial Statements
Notes to the Financial Statements
30 June 2021
30 June 2021
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(f)
Income Tax (continued)
(h) Business Combinations (continued)
arises from initial recognition of an asset or liability in a transaction other than a business combination that at the time of
the transaction affects neither accounting nor taxable profit or loss. Deferred income tax is determined using tax rates
(and laws) that have been enacted or substantially enacted by the end of the reporting year and are expected to apply
when the related deferred income tax asset is realised or the deferred income tax liability is settled.
Deferred tax assets are recognised only if it is probable that future taxable amounts will be available to utilise those
temporary differences and losses.
Deferred tax liabilities and assets are not recognised for temporary differences between the carrying amount and tax
bases of investments in foreign operations where the Group is able to control the timing of the reversal of the temporary
differences and it is probable that the differences will not reverse in the foreseeable future.
Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets and
liabilities and when the deferred tax balances relate to the same taxation authority. Current tax assets and tax liabilities are
offset where the entity has a legally enforceable right to offset and intends either to settle on a net basis, or to realise the
asset and settle the liability simultaneously.
Lycopodium Limited and its wholly-owned Australian controlled entities have implemented the tax consolidation legislation
effective 1 July 2013. As a consequence, these entities are taxed as a single entity and the deferred tax assets and
liabilities of these entities are set off in the Consolidated Financial Report.
Current and deferred tax is recognised in profit or loss, except to the extent that it relates to items recognised in other
comprehensive income or directly in equity. In this case, the tax is also recognised in other comprehensive income or
directly in equity, respectively.
(g) Right-of-Use Assets
A right-of-use asset is recognised at the commencement date of a lease. The right-of-use asset is measured at cost,
which comprises the initial amount of the lease liability, adjusted for, as applicable, any lease payments made at or before
the commencement date net of any lease incentives received, any initial direct costs incurred, and, except where included
in the cost of inventories, an estimate of costs expected to be incurred for dismantling and removing the underlying asset,
and restoring the site or asset.
Right-of-use assets are depreciated on a straight-line basis over the unexpired period of the lease or the estimated useful
life of the asset, whichever is the shorter. Where the Group expects to obtain ownership of the leased asset at the end of
the lease term, the depreciation is over its estimated useful life. Right-of use assets are subject to impairment or adjusted
for any remeasurement of lease liabilities.
The Group has elected not to recognise a right-of-use asset and corresponding lease liability for short-term leases with
terms of 12 months or less and leases of low-value assets. Lease payments on these assets are expensed to profit or
loss as incurred.
(h) Business Combinations
The acquisition method of accounting is used to account for all business combinations, regardless of whether
equity instruments or other assets are acquired. The consideration transferred for the acquisition of a subsidiary
comprises the fair values of the assets transferred, the liabilities incurred and the equity interests issued by the Group.
The consideration transferred also includes the fair value of any asset or liability resulting from a contingent consideration
arrangement and the fair value of any pre-existing equity interest in the subsidiary. Acquisition-related costs are expensed
as incurred. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are,
with limited exceptions, measured initially at their fair values at the acquisition-date. On an acquisition-by-acquisition
basis, the Group recognises any non-controlling interest in the acquiree either at fair value or at the non-controlling
interest’s proportionate share of the acquiree’s net identifiable assets.
The excess of the consideration transferred and the amount of any non-controlling interest in the acquiree over the fair
value of the net identifiable assets acquired is recorded as goodwill. If those amounts are less than the fair value of the net
identifiable assets of the subsidiary acquired and the measurement of all amounts has been reviewed, the difference is
recognised directly in profit or loss as a bargain purchase.
Where settlement of any part of cash consideration is deferred, the amounts payable in the future are discounted to their
present value as at the date of exchange. The discount rate used is the entity’s incremental borrowing rate, being the rate
at which a similar borrowing could be obtained from an independent financier under comparable terms and conditions.
Contingent consideration is classified either as equity or a financial liability. Amounts classified as a financial liability are
subsequently remeasured to fair value with changes in fair value recognised in profit or loss.
Impairment of Assets
(i)
Goodwill and intangible assets that have an indefinite useful life are not subject to amortisation and are tested
annually for impairment, or more frequently if events or changes in circumstances indicate that they might be impaired.
Other assets are tested for impairment whenever events or changes in circumstances indicate that the carrying amount
may not be recoverable. An impairment loss is recognised for the amount by which the asset’s carrying amount exceeds
its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs of disposal and value in
use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately
identifiable cash inflows which are largely independent of the cash inflows from other assets or groups of assets (cash-
generating units). Non-financial assets other than goodwill that suffered an impairment are reviewed for possible reversal
of the impairment at the end of each reporting year.
(j) Current and Non-Current Classification
Assets and liabilities are presented in the statement of financial position based on current and non-current classification.
An asset is classified as current when: it is either expected to be realised or intended to be sold or consumed in the
consolidated entity’s normal operating cycle; it is held primarily for the purpose of trading; it is expected to be realised
within 12 months after the reporting period; or the asset is cash or cash equivalent unless restricted from being
exchanged or used to settle a liability for at least 12 months after the reporting period. All other assets are classified as
non-current.
A liability is classified as current when: it is either expected to be settled in the consolidated entity’s normal operating
cycle; it is held primarily for the purpose of trading; it is due to be settled within 12 months after the reporting period; or
there is no unconditional right to defer the settlement of the liability for at least 12 months after the reporting period.
All other liabilities are classified as non-current.
Deferred tax assets and liabilities are always classified as non-current.
(k) Cash and Cash Equivalents
For cash flow statement presentation purposes, cash and cash equivalents includes cash on hand, deposits held at
call with financial institutions, other short-term, highly liquid investments with original maturities of three months or less
that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value,
and bank overdrafts.
(l) Trade Receivables
Trade receivables are recognised initially at fair value and subsequently measured at amortised cost using the effective
interest method, less expected credit loss. Trade receivables are generally due for settlement within 30 days.
Collectability of trade receivables is reviewed on an ongoing basis. Debts which are known to be uncollectible are written
off by reducing the carrying amount directly. An allowance account (expected credit loss on trade receivables) is used
when there is objective evidence that the Group will not be able to collect all amounts due according to the original terms
of the receivables. Significant financial difficulties of the debtor, probability that the debtor will enter bankruptcy or financial
reorganisation, and default or delinquency in payments (more than 30 days overdue) are considered indicators that the
trade receivable is impaired. The amount of the impairment allowance is the difference between the asset’s carrying
amount and the present value of estimated future cash flows, discounted at the original effective interest rate. Cash flows
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2021 Annual Financial Report2021 Annual Financial Report
Notes to the Financial Statements
Notes to the Financial Statements
30 June 2021
30 June 2021
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(l) Trade Receivables (continued)
(q) Non-Derivative Financial Assets (continued)
relating to short-term receivables are not discounted if the effect of discounting is immaterial.
The amount of the impairment loss is recognised in the profit and loss within ‘administration and management costs’.
When a trade receivable for which an impairment allowance had been recognised becomes uncollectible in a subsequent
period, it is written off against the allowance account. Subsequent recoveries of amounts previously written off are
credited against ‘administration and management costs’ in the profit and loss.
(m) Contract Assets
Contract assets are recognised when the consolidated entity has transferred goods or services to the customer but
where the consolidated entity is yet to establish an unconditional right to consideration. Contract assets are treated as
financial assets for impairment purposes.
(n) Customer Acquisition Costs
Customer acquisition costs are capitalised as an asset where such costs are incremental to obtaining a contract with a
customer and are expected to be recovered. Customer acquisition costs are amortised on a straight-line basis over the
term of the contract.
Costs to obtain a contract that would have been incurred regardless of whether the contract was obtained or which are
not otherwise recoverable from a customer are expensed as incurred to profit or loss. Incremental costs of obtaining a
contract where the contract term is less than one year is immediately expensed to profit or loss.
(o) Customer Fulfilment Costs
Customer fulfilment costs are capitalised as an asset when all the following are met: (i) the costs relate directly to the
contract or specifically identifiable proposed contract; (ii) the costs generate or enhance resources of the consolidated
entity that will be used to satisfy future performance obligations; and (iii) the costs are expected to be recovered.
Customer fulfilment costs are amortised on a straight-line basis over the term of the contract.
(p) Inventories
Raw materials, work in progress and finished goods are stated at the lower of cost and net realisable value on a ‘first
in first out’ basis. Cost comprises of direct materials and delivery costs, direct labour, import duties and other taxes,
an appropriate proportion of variable and fixed overhead expenditure based on normal operating capacity, and, where
applicable, transfers from cash flow hedging reserves in equity. Costs of purchased inventory are determined after
deducting rebates and discounts received or receivable.
Stock in transit is stated at the lower of cost and net realisable value. Cost comprises of purchase and delivery costs, net
of rebates and discounts received or receivable.
Net realisable value is the estimated selling price in the ordinary course of business less the estimated costs of completion
and the estimated costs necessary to make the sale.
(q) Non-Derivative Financial Assets
(i) Classification
The Group classifies its financial assets in the following measurement categories:
•
Those to be measured subsequently at fair value (either through other comprehensive income, or through profit
or loss), and
• Those to be measured at amortised cost.
The classification depends on the Group business model for managing financial assets and the contractual terms of
the cash flows. For assets measured at fair value, gains and losses will either be recorded in profit or loss or other
comprehensive income. For investments in debt instruments, this will depend on the business model in which the
investment is held. For Investments in equity instruments that are not held for trading, this will depend on whether the
Group has made an irrevocable election at the time of initial recognition to account for the equity investment at fair value
through other comprehensive income. The Group reclassifies debt investments when its business model for managing
those assets changes.
(ii) Measurement
At initial recognition, the Group measures a financial asset at its fair value plus, in the case of a financial asset
not at fair value through profit or loss, transaction costs that are directly attributable to the acquisition of the financial
asset. Transaction costs of financial assets carried at fair value through profit or loss are expensed in profit or loss.
Measurement of cash and cash equivalents and trade and other receivables remains at amortised cost consistent
with the comparative period.
Debt Instruments
Subsequent measurement of debt instruments depends on the Group’s business model for managing the asset
and the cash flow characteristics of the asset. There are three measurement categories which the Group classifies
its debt instruments:
•
•
•
Amortised cost: Assets that are held for collection of contractual cash flows, where those cash flows represent
solely payments of principal and interest are measured at amortised cost. A gain or loss on a debt investment that
is subsequently measured at amortised cost and is not part of a hedging relationship is recognised in profit or loss
when the asset is derecognised or impaired. Interest income from these financial assets is included in finance income
using the effective interest rate method.
Fair value through other comprehensive income (FVOCI): Assets that are held for collecting contractual cash flows
and through sale on specified dates. A gain or loss on a debt investment that is subsequently measured at FVOCI is
recognised in other comprehensive income. None are currently held by the Group.
Fair value through profit or loss (FVPL): Assets that do not meet the criteria for amortised cost or FVOCI are
measured at fair value through profit or loss. A gain or loss on a debt investment that is subsequently measured at
fair value through profit or loss and is not part of a hedging relationship is recognised in profit or loss and presented
net in the statement of profit or loss within other gains/(losses) in the period in which it arises. None are currently held
by the Group.
Equity Instruments
The Group subsequently measures all equity investments at fair value. Where the Group’s management has elected
to present fair value gains and losses on equity investments in other comprehensive income, there is no subsequent
reclassification of fair value gains and losses to profit or loss following the derecognition of the investment. Dividends from
such investments continue to be recognised in profit or loss as other income when the Group’s right to receive payments
is established. Impairment losses (and reversal of impairment losses) on equity investments measured at FVOCI are not
reported separately from other changes in fair value. Changes in the fair value of financial assets at fair value through profit
or loss are recognised either in other income or in other expenses in the statement of profit or loss.
Impairment
(iii)
The Group assesses on a forward looking basis the expected credit losses associated with its debt instruments carried
at amortised cost and FVOCI. The impairment methodology applied depends on whether there has been a significant
increase in credit risk.
For trade receivables and other receivables, the Group applies the simplified approach permitted by AASB 9, which
requires expected lifetime losses to be recognised from initial recognition of the receivables.
(r) Non-Derivative Financial Liabilities
Interest Bearing Liabilities
All loans and borrowings are initially recognised at fair value, being the amount received less attributable transaction
costs. After initial recognition, interest bearing liabilities are stated at amortised cost with any difference between cost and
redemption value being recognised in the statement of profit or loss over the period of the borrowings on an effective
interest basis.
Trade and Other Payables
Liabilities are recognised for amounts to be paid for goods or services received. Trade payables are settled on terms
aligned with the normal commercial terms in the Group’s countries of operation.
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2021 Annual Financial Report2021 Annual Financial Report
Notes to the Financial Statements
Notes to the Financial Statements
30 June 2021
30 June 2021
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(s) Trade and Other Payables
These amounts represent liabilities for goods and services provided to the consolidated entity prior to the end of the
financial year and which are unpaid. Due to their short-term nature they are measured at amortised cost and are not
discounted. The amounts are unsecured and are usually paid within 30 days of recognition.
(t) Contract Liabilities
Contract liabilities represent the consolidated entity’s obligation to transfer goods or services to a customer and are
recognised when a customer pays consideration, or when the consolidated entity recognises a receivable to reflect its
unconditional right to consideration (whichever is earlier) before the consolidated entity has transferred the goods or
services to the customer.
(u) Borrowings
Loans and borrowings are initially recognised at the fair value of the consideration received, net of transaction costs.
They are subsequently measured at amortised cost using the effective interest method.
(v) Lease Liabilities
A lease liability is recognised at the commencement date of a lease. The lease liability is initially recognised at the
present value of the lease payments to be made over the term of the lease, discounted using the interest rate implicit
in the lease or, if that rate cannot be readily determined, the consolidated entity’s incremental borrowing rate. Lease
payments comprise of fixed payments less any lease incentives receivable, variable lease payments that depend on an
index or a rate, amounts expected to be paid under residual value guarantees, exercise price of a purchase option when
the exercise of the option is reasonably certain to occur, and any anticipated termination penalties. The variable lease
payments that do not depend on an index or a rate are expensed in the period in which they are incurred.
Lease liabilities are measured at amortised cost using the effective interest method. The carrying amounts are remeasured
if there is a change in the following: future lease payments arising from a change in an index or a rate used; residual
guarantee; lease term; certainty of a purchase option and termination penalties. When a lease liability is remeasured, an
adjustment is made to the corresponding right-of use asset, or to profit or loss if the carrying amount of the right-of-use
asset is fully written down.
(w) Finance Costs
Finance costs attributable to qualifying assets are capitalised as part of the asset. All other finance costs are expensed in
the period in which they are incurred.
(x) Derivative Financial Instruments
Interest Bearing Liabilities
Derivative financial instruments are stated at fair value, with changes in fair value recognised in the statement of profit or
loss. Where derivative financial instruments qualify for hedge accounting, recognition of changes in fair value depends on
the nature of the item being hedged. Hedge accounting is discontinued when the hedging relationship is revoked, the
hedging instrument expires, is sold, terminated, exercised, or no longer qualifies for hedge accounting.
The Group documents at the inception of the hedging transaction the economic relationship between hedging
instruments and hedged items including whether the instrument is expected to offset changes in cash flows of hedged
items. The Group documents its risk management objective and strategy for undertaking various hedge transactions at
the inception of each hedge relationship.
Cash Flow Hedge
The effective portion of changes in the fair value of derivatives that are designated and qualify as cash flow hedges is
recognised in the cash flow hedge reserve within equity, limited to the cumulative change in fair value of the hedged item
on a present value basis from the inception of the hedge. The gain or loss relating to the ineffective portion is recognised
immediately in profit or loss, within other expenses.
When option contracts are used to hedge forecast transactions, the Group designates only the intrinsic value of the
option contract as the hedging instrument. Gains or losses relating to the effective portion of the change in intrinsic value
of the option contracts are recognised in the cash flow hedge reserve in equity. The changes in the time value of the
(x) Derivative Financial Instruments (continued)
Cash Flow Hedge (continued)
option contracts that relate to the hedged item (‘aligned time value’) are recognised within other comprehensive income in
the costs of hedging reserve within equity.
When forward contracts are used to hedge forecast transactions, the Group generally designates only the change in fair
value of the forward contract related to the spot component as the hedging instrument. Gains or losses relating to the
effective portion of the change in the spot component of the forward contracts are recognised in the cash flow hedge
reserve in equity. The change in the forward element of the contract that relates to the hedged item is recognised within
other comprehensive income in the costs of hedging reserve within equity. In some cases, the entity may designate the
full change in fair value of the forward contract (including forward points) as the hedging instrument. In such cases, the
gains or losses relating to the effective portion of the change in fair value of the entire forward contract are recognised in
the cash flow hedge reserve within equity.
Amounts accumulated in equity are reclassified in the periods when the hedged item affects profit or loss, as follows:
•
•
The gain or loss relating to the effective portion of forward and option contracts are ultimately recognised in profit or
loss as the hedged item affects profit or loss within expenses.
The gain or loss relating to the effective portion of the interest rate swaps hedging variable rate borrowings is
recognised in profit or loss within ‘finance cost’.
When a hedging instrument expires, or is sold or terminated, or when a hedge no longer meets the criteria for hedge
accounting, any cumulative deferred gain or loss and deferred costs of hedging in equity at that time remains in equity
until the forecast transaction occurs, resulting in the recognition of a non-financial asset such as inventory. When the
forecast transaction is no longer expected to occur, the cumulative gain or loss and deferred costs of hedging that were
reported in equity are immediately reclassified to profit or loss. Hedge ineffectiveness is recognised in profit or loss within
other expenses.
Accounting policies for remaining hedges and derivatives are consistent with the comparative period.
(y) Property, Plant and Equipment
Property, plant and equipment is stated at historical cost less depreciation. Historical cost includes expenditure that is
directly attributable to the acquisition of the items.
Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only
when it is probable that future economic benefits associated with the item will flow to the Group and the cost of the item
can be measured reliably. The carrying amount of any component accounted for as a separate asset is derecognised
when replaced. All other repairs and maintenance are charged to profit or loss during the reporting year in which they are
incurred.
Depreciation on plant and equipment is calculated using the straight line or diminishing value method to allocate their
cost, net of their residual values, over their estimated useful lives, as follows:
- Plant and equipment
-
-
-
-
3 - 10 years
5 - 7 years
Vehicles
Furniture, fittings and equipment 3 - 8 years
3 - 6 years
Leasehold improvements
3 - 5 years
Leased plant and equipment
The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each reporting year.
An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying amount is greater
than its estimated recoverable amount (note 1(i)).
Gains and losses on disposals are determined by comparing proceeds with carrying amount. These are included in the
profit and loss.
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Notes to the Financial Statements
Notes to the Financial Statements
30 June 2021
30 June 2021
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(z)
Intangible Assets
(i) Goodwill
Goodwill is measured as described in note 1(h). Goodwill on acquisitions of subsidiaries is included in intangible assets.
Goodwill is not amortised but it is tested for impairment annually, or more frequently if events or changes in circumstances
indicate that it might be impaired, and is carried at cost less accumulated impairment losses. Gains and losses on the
disposal of an entity include the carrying amount of goodwill relating to the entity sold.
Goodwill is allocated to cash-generating units for the purpose of impairment testing. The allocation is made to those
cash-generating units or groups of cash-generating units that are expected to benefit from the business combination in
which the goodwill arose, identified according to operating segments (note 4).
(ii) Software
Intangible assets also comprise capitalised computer software. Computer software has a finite useful life and is carried at
cost less accumulated amortisation. Amortisation is calculated using the straight line method to allocate the cost of the
computer software over their estimated useful lives, being 3 years.
(aa) Borrowing Costs
General and specific borrowing costs that are directly attributable to the acquisition, construction or production of a
qualifying asset are capitalised during the year of time that is required to complete and prepare the asset for its intended
use or sale. Qualifying assets are assets that necessarily take a substantial year of time to get ready for their intended
use or sale.
Other borrowing costs are expensed in the year in which they are incurred.
(ab) Provisions
Provisions for legal claims, service warranties and make good obligations are recognised when the Group has a present
legal or constructive obligation as a result of past events, it is probable that an outflow of resources will be required to
settle the obligation and the amount can be reliably estimated. Provisions are not recognised for future operating losses.
Where there are a number of similar obligations, the likelihood that an outflow will be required in settlement is determined
by considering the class of obligations as a whole. A provision is recognised even if the likelihood of an outflow with
respect to any one item included in the same class of obligations may be small.
Provisions are measured at the present value of management’s best estimate of the expenditure required to settle the
present obligation at the end of the reporting year. The discount rate used to determine the present value is a pre-tax rate
that reflects current market assessments of the time value of money and the risks specific to the liability. The increase in
the provision due to the passage of time is recognised as interest expense.
(ac) Employee Benefits
Short-Term Obligations
(i)
Liabilities for wages and salaries, including non-monetary benefits expected to be settled wholly within 12 months after
the end of the period in which the employees render the related services are recognised in respect of employees’ services
up to the end of the reporting period and are measured at the amounts expected to be paid when the liabilities are
settled. All other short-term employee benefit obligations are presented as payables.
(ii) Other Long-Term Employee Benefits Obligations
The liability for long service leave and annual leave which is not expected to be settled wholly within 12 months after the
end of the period in which the employees render the related service is therefore recognised in the provision for employee
benefits and measured as the present value of expected future payments to be made in respect of services provided
by employees up to the end of the reporting period using the projected unit credit method. Consideration is given to
expected future wage and salary levels, experience of employee departures and periods of service. Expected future
payments are discounted using market yields at the end of the reporting period of high quality corporate bonds with
terms and currency that match, as closely as possible, the estimated future cash outflows. Remeasurements as a result
of experience adjustments and changes in actuarial assumptions are recognised in profit or loss.
The obligations are presented as current liabilities in the consolidated balance sheet if the entity does not have an
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(ac) Employee Benefits (continued)
unconditional right to defer settlement for at least twelve months after the reporting date, regardless of when the actual
settlement is expected to occur.
(iii) Retirement Benefit Obligations
Contributions to defined contribution funds are recognised as an expense as they become payable. Prepaid contributions
are recognised as an asset to the extent that a cash refund or a reduction in the future payments is available.
(iv) Share-Based Payments
Share-based compensation benefits are provided to certain executive directors and other designated employees via the
Performance Rights Plans. Information relating to this scheme is set out in note 35.
The fair value of rights granted under the Performance Rights Plans are recognised as an employee benefit expense with
a corresponding increase in equity. The fair value is measured at grant date and recognised over the period during which
the employees become unconditionally entitled to the options.
The fair value at grant date is independently determined using a Binomial Tree option pricing model that takes into
account the exercise price, the term of the option, the vesting and performance criteria, the impact of dilution, the
non-tradeable nature of the option, the share price at grant date and expected price volatility of the underlying share,
the expected dividend yield and the risk-free interest rate for the term of the option.
(v) Senior Manager Share Acquisition Plan
The senior manager share acquisition plan was approved at the company’s Annual General Meeting on 24 November
2009. The aim of the plan was to allow the Board to assist managers, who in the Board’s opinion have demonstrated the
qualities and dedication to become the next generation of senior managers, to take up a significant shareholding so as to
ensure their commitment and the future of the company.
Eligible Senior Managers include both full-time senior managers and executive directors of the Company or such other
persons as the Board determines.
A broad outline of the plan is summarised below:
•
•
•
•
The company will loan funds to participating Senior Managers to purchase Lycopodium Limited shares via the
Lycopodium Share Plan Trust.
The loan will be a limited recourse loan provided the Senior Manager stays with the Company for greater than
3 years.
The loan will be interest free if the Senior Manager remains employed by the Company for greater than 3 years.
In the event that the Senior Manager leaves within 3 years, interest will be charged equal to the market rate of interest
that would have accrued on the loan from the date of advance of the funds to the repayment date.
• During the term of the loan, dividends will be offset against the outstanding loan balance.
•
The shares are allocated to the Senior Managers at a 1 cent discount to the volume weighted average of the prices
at which the shares of Lycopodium Limited were traded on the ASX during the one week period up to and including
the date of allocation.
The Company has the following as the result of this transaction:
Share Based Payment
The difference between the value of the shares purchased and the value of the shares allocated to the senior managers
represents the cost to the company for providing the loan to the employees. This amount is expensed in the profit and loss.
Embedded Derivative
The senior manager loan receivable is a loan with an embedded derivative with the senior manager having an option to
put back the share to the Company in full settlement of the loan after the 3 year period. As the embedded derivative is
closely related to the senior manager loan, the financial instrument is measured at fair value through profit or loss.
(vi) Defined Contribution Superannuation Expense
Contributions to defined contribution superannuation plans are expensed in the period in which they are incurred.
40
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2021 Annual Financial Report2021 Annual Financial Report
Notes to the Financial Statements
Notes to the Financial Statements
30 June 2021
30 June 2021
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(ad) Contributed Equity
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares are shown in
equity as a deduction, net of tax, from the proceeds.
(ae) Dividends
Provision is made for the amount of any dividend declared, being appropriately authorised and no longer at the discretion
of the entity, on or before the end of the reporting year but not distributed at the end of the reporting year.
(af) Earnings Per Share
(i) Basic Earnings Per Share
Basic earnings per share is calculated by dividing:
•
•
the profit attributable to owners of the Company, excluding any costs of servicing equity other than ordinary shares
by the weighted average number of ordinary shares outstanding during the financial year, adjusted for bonus
elements in ordinary shares issued during the year.
(ii) Diluted Earnings Per Share
Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take into account:
•
•
the after income tax effect of interest and other financing costs associated with dilutive potential ordinary shares, and
the weighted average number of additional ordinary shares that would have been outstanding assuming the
conversion of all dilutive potential ordinary shares.
(ag) Goods and Services Tax (GST)
Revenues, expenses and assets are recognised net of the amount of associated GST, unless the GST incurred is not
recoverable from the taxation authority. In this case it is recognised as part of the cost of acquisition of the asset or as part
of the expense.
Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net amount of GST
recoverable from, or payable to, the taxation authority is included with other receivables or payables in the consolidated
balance sheet.
Cash flows are presented on a gross basis. The GST components of cash flows arising from investing or financing
activities which are recoverable from, or payable to the taxation authority, are presented as operating cash flows.
(ah) Fair Value Measurement
When an asset or liability, financial or non-financial, is measured at fair value for recognition or disclosure purposes, the
fair value is based on the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction
between market participants at the measurement date; and assumes that the transaction will take place either: in the
principal market; or in the absence of a principal market, in the most advantageous market.
Fair value is measured using the assumptions that market participants would use when pricing the asset or liability,
assuming they act in their economic best interests. For non-financial assets, the fair value measurement is based on its
highest and best use. Valuation techniques that are appropriate in the circumstances and for which sufficient data are
available to measure fair value, are used, maximising the use of relevant observable inputs and minimising the use of
unobservable inputs.
Assets and liabilities measured at fair value are classified into three levels, using a fair value hierarchy that reflects the
significance of the inputs used in making the measurements. Classifications are reviewed at each reporting date and
transfers between levels are determined based on a reassessment of the lowest level of input that is significant to the fair
value measurement.
For recurring and non-recurring fair value measurements, external valuers may be used when internal expertise is either
not available or when the valuation is deemed to be significant. External valuers are selected based on market knowledge
and reputation. Where there is a significant change in fair value of an asset or liability from one period to another, an
analysis is undertaken, which includes a verification of the major inputs applied in the latest valuation and a comparison,
where applicable, with external sources of data.
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(ai) New Accounting Standards Not Yet Effective
Australian Accounting Standards and Interpretations that have recently been issued or amended but are not yet
mandatory, have not been early adopted by the Group for the annual reporting period ended 30 June 2021.
The Group has not yet assessed the impact of these new or amended Accounting Standards and Interpretations.
(aj) Parent Entity Financial Information
The financial information for the parent entity, Lycopodium Limited, disclosed in note 36 has been prepared on the same
basis as the consolidated financial report, except as set out below.
Investments in Subsidiaries, Associates and Joint Venture Entities
(i)
Investments in subsidiaries, associates and joint venture entities are accounted for at cost in the financial report of
Lycopodium Limited. Dividends received from associates are recognised in the parent entity’s profit or loss, rather than
being deducted from the carrying amount of these investments.
(ii) Share Based Payments
The grant by the Company of options over its equity instruments to the employees of subsidiary undertakings in the
Company is treated as a capital contribution to that subsidiary undertaking. The fair value of employee services received,
measured by reference to the grant date fair value, is recognised over the vesting period as an increase to investment in
subsidiary undertakings, with a corresponding credit to equity.
2. FINANCIAL RISK MANAGEMENT
The Group manages its exposure to key financial risks, including interest rate and currency risk in accordance with the
Group’s financial risk management policy. The objective of the policy is to support the delivery of the Group’s financial
targets whilst protecting future financial security.
The main risks arising from the Group’s financial instruments are interest rate risk, foreign currency risk, credit risk and
liquidity risk. The Group uses different methods to measure and manage different types of risks to which it is exposed.
These include monitoring levels of exposure to interest rate and foreign exchange risk and assessments of market
forecasts for interest rates and foreign exchange. Ageing analyses and monitoring of specific credit allowances are
undertaken to manage credit risk, and liquidity risk is monitored through the development of future rolling cash flow
forecasts.
The primary responsibility for identification and control of financial risks rests with the Board. The Board reviews and
agrees policies for managing each of the risks identified above.
(a) Market Risk
Foreign Exchange Risk
(i)
The Group operates internationally and is exposed to foreign exchange risk arising from various currency exposures,
primarily with respect to the US dollar (USD) and Philippine Peso (PHP). Exchange rate exposures are managed with
approved policy parameters utilising forward exchange contracts.
Foreign exchange risk arises when future commercial transactions and recognised financial assets and financial liabilities
are denominated in a currency that is not the entity’s functional currency.
Exposure
The Group’s exposure to foreign currency risk at the reporting period, expressed in Australian dollar, was as follows:
Cash and cash equivalents
Trade and other receivables
Other current assets
Trade and other payables
Net exposure
30 June 2021
30 June 2020
USD
$
PHP
$
USD
$
5,749,131
247,744
12,938,281
-
-
-
650,276
-
-
(7,290,945)
(1,541,814)
(368,935)
(5,900,520)
529,085
7,037,761
PHP
$
208,365
42,682
651,264
(399,089)
503,222
42
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2021 Annual Financial Report2021 Annual Financial Report
Notes to the Financial Statements
Notes to the Financial Statements
30 June 2021
30 June 2021
2. FINANCIAL RISK MANAGEMENT (CONTINUED)
(a) Market Risk (continued)
Group Sensitivity
Based on the financial instruments held at 30 June 2021, had the Australian dollar weakened/strengthened by 10%
against the US dollar with all other variables held constant, the Group’s post-tax profit and equity for the year would have
been $154,181 higher/$154,181 lower (2020: $703,776 higher/$703,776 lower), mainly as a result of foreign exchange
gains/losses on translation of US dollar denominated financial instruments as detailed in the above table.
Profit is less sensitive to movements in the Australian dollar/US dollar exchange rates in 2021 than 2020 due to lower
amounts of US dollar denominated cash and cash equivalents.
Based on the financial instruments held at 30 June 2021, had the Australian dollar weakened/strengthened by 10%
against the Philippine Peso with all other variables held constant, the Group’s post-tax profit and equity for the year would
have been $52,908 higher/$52,908 lower (2020: $50,322 higher/$50,322 lower), mainly as a result of foreign exchange
gains/losses on translation of Philippine Peso denominated financial instruments as detailed in the above table. Profit is
more sensitive to movements in the Australian dollar/Philippine Peso exchange rates in 2020 than 2019 mainly because
of the higher amount of Philippine Peso denominated cash and cash equivalents.
Exposures to foreign exchange rates vary during the year depending on the volume of overseas transactions.
Nonetheless, the analysis above is considered to be representative of the Group’s exposure to currency risk.
(ii) Price Risk
The Group has exposure to equity securities price risk with the exposure, however, being minimal. Equity securities price
risk arises from investments in equity securities. The equity investments are publicly traded on the Australian Securities
Exchange (‘ASX’). The price risk for the listed securities is immaterial in terms of a possible impact on profit and loss or
total equity and as such a sensitivity analysis has not been completed. The Group does not have a risk management
policy surrounding price risk in place as the Board considers the risk minimal.
Interest Rate Risk
(iii)
The Group is exposed to interest rate risk arising mainly from borrowings and cash balances held. The risk is considered
minimal as the Group’s borrowings are minimal. The Group does not enter into any specific swaps or hedges to cover
any interest rate volatility and does not have a risk management policy surrounding cash flow and interest rate risk as the
Board considers these risks to be minimal.
(iv) Group Sensitivity
At 30 June 2021, if interest rates had changed by -/+50 basis points from the year end rates with all other variables held
constant, post-tax profit and equity for the year would have been $268,566 lower/higher (2020: $359,734 lower/higher),
as a result of lower/higher interest income from cash and cash equivalents.
(b) Credit Risk
Credit risk arises from the financial assets of the Group, which comprise cash and cash equivalents, trade and other
receivables and other current assets. The Group’s exposure to credit risk arises from potential default of the counterparty,
with a maximum exposure equal to the carrying amount of these instruments.
Other receivables comprises of the loan under the senior management share acquisition plan. The Group is not exposed
to credit risk as the loan is secured under the terms of the loan (note 1(u)).
The carrying amount of financial assets represents the maximum credit exposure. The maximum exposure to credit risk
at the reporting date was:
Cash and cash equivalents
Trade and other receivables
Deposits held with banks (note 10)
2021
$
76,841,138
43,887,117
532,468
121,260,723
2020
$
102,888,489
26,916,009
686,193
130,490,691
2. FINANCIAL RISK MANAGEMENT (CONTINUED)
(b) Credit Risk (continued)
Cash and Cash Equivalents
The credit risk on cash and cash equivalents is limited because the Group’s primary bank is rated AA- by an international
credit-rating agency.
Trade and Other Receivables
The Group’s exposure to credit risk is influenced mainly by the individual characteristics of each customer.
However, management also considers the demographics of the Group’s customer base, including the default risk of the
industry and country in which customers operate, as these factors may have an influence on credit risk.
The Group trades only with recognised, creditworthy third parties, and as such collateral is not requested nor is it the
Group’s policy to securitise its trade and other receivables. All receivables at balance date that are neither past due nor
impaired comply with the Group’s policy on credit quality.
It is the Group’s policy that all customers who wish to trade on credit terms are subject to credit verification procedures
including an assessment of their financial position, past experience and industry reputation.
In addition, receivable balances are monitored on an ongoing basis with the result that the Group’s exposure to bad debts
is minimised.
There are no significant concentrations of credit risk within the Group. The Group minimises concentrations of credit risk
in relation to trade receivables by undertaking transactions with a number of customers that operate predominantly in
the mining and extractive industry sector including major operators in the industry and junior/emerging operators. There
are multiple contracts with our significant customers, across a number of their subsidiaries and divisions within those
subsidiaries and locations.
Deposits Held with Banks
The credit risk on deposits held with banks are limited as they comprise deposits held with banks with high credit ratings
assigned by international credit-rating agencies.
(c) Liquidity Risk
Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of
funding through an adequate amount of committed credit facilities. The Company manages liquidity risk by continuously
monitoring forecast and actual cash flows and matching the maturity profiles of financial assets and liabilities.
Financing Arrangements
The Group had access to the following undrawn borrowing facilities at the reporting date:
Leasing facility
Standby credit facility
Insurance bonds
2021
$
3,000,000
10,401,171
36,084,211
49,485,382
2020
$
1,500,000
10,561,351
31,362,785
43,424,136
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2021 Annual Financial Report2021 Annual Financial Report
Notes to the Financial Statements
Notes to the Financial Statements
30 June 2021
30 June 2021
2. FINANCIAL RISK MANAGEMENT (CONTINUED)
(c) Liquidity Risk (continued)
Maturities of Financial Liabilities
The following tables detail the Group’s remaining contractual maturity for its non-derivative financial liabilities.
The tables have been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest date
on which the Group can be required to pay. The table includes both interest and principal cash flows.
Consolidated - At 30 June 2021
Non-derivatives
Trade payables
Insurance premium funding
Finance leases
Lease Liabilities
Borrowings
Total
Consolidated - At 30 June 2020
Non-derivatives
Trade payables
Insurance premium funding
Finance leases
Lease Liabilities
Total
1 year or
less
$
12,083,924
-
71,873
3,391,422
692,568
16,239,787
1 year or
less
$
12,503,674
169,307
140,993
1,766,801
14,580,775
Between
1 and 2
years
$
Between
2 and 5
years
$
-
-
39,517
3,234,606
692,568
3,966,691
-
-
61,883
7,061,438
692,567
7,815,888
Over 5
years
$
-
-
-
4,505,412
-
4,505,412
Total
contractual
cash flows
$
Carrying
amount
liabilities
$
12,083,924
-
173,273
18,192,878
2,077,703
32,527,778
12,083,924
-
165,023
15,738,888
2,000,000
29,987,835
Between
1 and 2
years
$
Between
2 and 5
years
$
Over 5
years
$
Total
contractual
cash flows
$
Carrying
amount
liabilities
$
-
-
71,280
945,241
1,016,521
-
-
101,224
790,282
891,506
-
-
-
-
-
12,503,674
169,307
313,497
3,502,324
16,488,802
12,503,674
169,307
299,105
3,190,102
16,162,188
In assessing and managing liquidity risks of its derivative financial instruments the Group considers both contractual
inflows and outflows. The contractual cash flows of the Group’s derivative financial assets and liabilities are all current
(within 12 months).
Derivative financial instruments reflect forward exchange contracts (see note 11(b)) that will be settled on a gross basis.
3. CRITICAL ACCOUNTING ESTIMATES AND ASSUMPTIONS
The Group makes estimates and assumptions concerning the future. The resulting accounting estimates will, by
definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a
material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below.
Impairment Testing of Goodwill
(i)
The Group tests annually whether goodwill has suffered any impairment, in accordance with the accounting policy stated
in note 1(i). The recoverable amounts of cash-generating units have been determined based on value-in-use calculations.
These calculations require the use of assumptions. Refer to note 17 for details of these assumptions and the potential
impact of changes to the assumptions.
(ii) Service and Equipment Warranties
In accordance with the accounting policy stated in note 1(ab), the Group has recognised warranty provisions at the
end of the financial year in respect of potential claims for rectification work on some of its EPC contracts. Refer to note
19 in relation to the service warranty provisions provided at period end. The amounts provided takes into account the
percentage completion of the project, forecast to complete costs plus any close-out obligations and potential contractual
liabilities during the warranty period.
(iii) Fixed-Price Contracts
The Group uses cost inputs to estimate its revenue from fixed-sum contracts. The stage of completion is measured by
reference to the contract costs incurred to date compared to the estimated total costs for the contract.
Significant assumptions are required to estimate the total contract costs and the recoverable variations work that will
3. CRITICAL ACCOUNTING ESTIMATES AND ASSUMPTIONS (CONTINUED)
(iii) Fixed-Price Contracts (continued)
affect the stage of completion and the contract revenue respectively. In making these estimates, the Group has relied on
past experience and best available information.
(iv) Coronavirus (COVID-19) Pandemic
Judgement has been exercised in considering the impacts that the Coronavirus (COVID-19) pandemic has had,
or may have, on the consolidated entity based on known information. This consideration extends to the nature of
the products and services offered, customers, supply chain, staffing and geographic regions in which the consolidated
entity operates. Other than as addressed in specific notes, there does not currently appear to be either any significant
impact upon the Financial Statements or any significant uncertainties with respect to events or conditions which may
impact the consolidated entity unfavourably as at the reporting date or subsequently as a result of the Coronavirus
(COVID-19) pandemic.
4. SEGMENT INFORMATION
(a) Description of Segments
The Board considers the business from both a product and geographic perspective and has identified four operating
segments of which three (2020: three) are reportable in accordance with the requirements of AASB 8.
The Minerals segment consists of engineering and related services provided to the extractive mining industry. The clients,
including junior exploration companies and major multinational producers, are developing projects for a wide range of
commodities. These projects range in scope from large greenfield projects involving process plant and equipment, civil
building works, control systems, services and infrastructure to small skid-mounted pilot plants.
The Process Industries segment consists of engineering and related services provided to the manufacturing and
renewable energy facilities throughout Australia and South East Asia.
The Project Services - Africa segment consists of project management, construction management and commissioning
services provided to the extractive mining industry in Africa.
All other operating segments are not reportable operating segments, as they fall under the quantitative thresholds of
AASB 8. The results of these operations are included in the ‘Other’ column.
The remaining operating segments that are not reportable consists of:
Infrastructure:
Metallurgical:
Asset management, engineering, architectural and project delivery services to a wide range
of private and public clients across Australia.
Metallurgical consulting providing a range of services to the mineral processing community,
primarily in the field of comminution, hydrometallurgy and mineral processing design.
Project Services Asia:
Provision of drafting services to offshore Lycopodium entities.
Management has determined the operating segments based on the reports reviewed by the Board of Directors that are
used to make strategic decisions.
46
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2021 Annual Financial Report2021 Annual Financial Report
Notes to the Financial Statements
Notes to the Financial Statements
30 June 2021
30 June 2021
4. SEGMENT INFORMATION (CONTINUED)
4. SEGMENT INFORMATION (CONTINUED)
(c) Segment Revenue
Sales between segments are carried out at arm’s length and are eliminated on consolidation. The revenue from external
parties reported to the Board of Directors is measured in a manner consistent with that in the Consolidated Statement of
Profit or Loss and Other Comprehensive Income.
The entity is domiciled in Australia. The result of its revenue from external customers in Australia is $46,399,257
(2020: $29,776,583), and the total of revenue from external customers from other countries is $111,663,247(2020:
$176,879,232). Segment revenues are allocated based on the country in which the customer is located.
Total segment revenue
Unallocated
Total revenue as per the consolidated statement
of comprehensive income
2021
$
2020
$
161,534,130
641,518
162,175,648
210,607,490
526,820
211,134,310
Revenues of approximately $50,394,067 (2020: $98,337,900) are derived from the top 3 customers.
These revenues are attributable to the Minerals segment.
(d) Segment Profit Before Tax
The board of Directors assesses the performance of the operating segments based on a measure of adjusted profit
before tax.
A reconciliation of segment profit before tax to the profit before tax in the Consolidated Statement of Profit or Loss
and Other Comprehensive Income is provided as follows:
Segment profit before tax
Unallocated
Profit before income tax as per statement
of comprehensive income
2021
$
2020
$
26,498,578
(5,009,197)
21,489,381
21,449,117
(2,998,978)
18,450,139
(e) Segment Assets
The amounts provided to the Board of Directors with respect to total assets are measured in a manner consistent with
that of the Financial Report. These assets are allocated based on the operations of the segment and the physical location
of the asset.
Reportable segments’ assets are reconciled to total assets as follows:
Segment assets
Intersegment eliminations
Intangibles arising on consolidation
Unallocated segment assets:
Cash and cash equivalents
Trade and other receivables
Right-of-use assets
Other unallocated segment assets
Total assets as per the consolidated balance sheet
2021
$
2020
$
121,899,975
(5,670,938)
6,126,228
125,354,087
(4,594,393)
6,126,228
15,109,761
6,541,616
11,482,192
8,563,616
164,052,450
21,828,982
1,927,586
-
5,007,553
155,650,043
(f) Segment Liabilities
The amounts provided to the Board of Directors with respect to total liabilities are measured in a manner consistent with
that of the Financial Report. These liabilities are allocated based on the operations of the segment.
Reportable segments’ liabilities are reconciled to total liabilities as follows:
Segment liabilities
Intersegment eliminations
Unallocated segments liabilities:
Trade and other payables
Provision for income tax
Lease liabilities
Other unallocated segment liabilities
Total liabilities as per the consolidated balance sheet
5. REVENUE
2021
$
2020
$
72,153,522
(5,537,040)
84,181,863
(4,460,524)
1,934,706
(2,600,645)
12,046,619
(1,484,633)
76,378,631
2,194,898
1,190,822
-
(5,299,637)
77,807,422
(a) Disaggregation of Revenue from Contracts with Customers
Engineering
& related
services
$
2021
Con-
struction
contracts
$
Engineering
& related
services
$
Total
$
2020
Con-
struction
contracts
$
Total
$
Minerals
87,906,029
47,473,649
135,379,678
92,169,586
86,791,204
178,960,790
Project Services - Africa
Process Industries
Other
Total revenue
589,087
6,760,213
15,333,527
-
-
-
589,087
6,371,701
6,760,213
4,483,450
15,333,527
16,839,874
-
-
-
6,371,701
4,483,450
16,839,874
110,588,856
47,473,649
158,062,505
119,864,611
86,791,204
206,655,815
(b) Assets and Liabilities Related to Contracts with Customers
Asset recognised for costs incurred to fulfil a contract
Total contract assets
Advances received for construction contract work
Deferred services income
Total contract liabilities
2021
$
-
-
8,933,937
8,121,426
17,055,363
2020
$
-
-
42,402,611
5,254,792
47,657,403
Significant changes in contract assets and liabilities
(i)
Advances received for construction contract work and deferred services income represent customer payments received
in advance of performance (contract liabilities) that are expected to be recognised as revenue in 2022.
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2021 Annual Financial Report2021 Annual Financial Report
Notes to the Financial Statements
30 June 2021
5. REVENUE (CONTINUED)
(c) Other Income
Other income
Profit on sale of shares
Rental income
Wages subsidies
Sundry income
Total other income
6. EXPENSES
Profit before income tax includes the following specific expenses:
Depreciation and amortisation
Fixtures and fittings
Leasehold improvements
Motor vehicles
Leased plant and equipment
Office premises right-of-use assets
Computer software
Total depreciation and amortisation
2021
$
213,458
568,786
1,762,566
1,017,026
3,561,836
2020
$
-
626,422
-
2,330,934
2,957,356
2021
$
2020
$
869,313
223,302
8,920
40,150
3,344,937
298,165
4,784,787
637,823
242,562
7,142
264,622
6,616,163
263,035
8,031,347
Net foreign exchange losses
465,165
601,234
Finance costs
Interest and finance charges paid/payable on borrowings
Interest and finance charges paid/payable on lease liabilities
Total finance costs
Share based payments
Defined contribution superannuation expense
7.
INCOME TAX EXPENSE
(a)
Income Tax Expense
Current tax on profits for the year
Deferred tax on profits for the year
Adjustments for current tax of prior periods
Deferred income tax expense/(benefit) included in income tax
expense comprises:
Increase in deferred tax assets (note 16)
Increase in deferred tax liabilities (note 20)
45,902
770,887
816,789
438,517
2,944,476
2021
$
9,810,950
(2,427,789)
39,973
7,423,134
(7,021,931)
4,594,142
(2,427,789)
140,732
473,412
614,144
215,306
2,892,720
2020
$
6,853,175
301,334
(380,996)
6,773,513
(247,738)
549,072
301,334
Notes to the Financial Statements
30 June 2021
7.
INCOME TAX EXPENSE (CONTINUED)
(b) Numerical Reconciliation of Income Tax Expense to Prima Facie Tax Payable
Profit before income tax expense
Tax at the Australian tax rate of 30% (2020: 30%)
Tax effect of amounts which are not deductible (taxable) in calculating
taxable income:
Share-based payment
Sundry items
Withholding tax gross-up
Adjustments for current tax of prior periods - under/(over) provision of prior
year income tax
Difference in overseas tax rates
Deferred taxes not recognised
Share of net profit of joint ventures accounted for using the equity method
Foreign tax incurred
Unfranked dividends received from joint ventures accounted for using the
equity method
Total income tax expense
2021
$
21,489,381
6,446,814
131,555
40,618
521,854
7,140,841
(136,631)
(193,118)
(184,076)
(104,550)
900,668
-
2020
$
18,450,139
5,535,042
64,592
37,072
-
5,636,706
(380,996)
(2,334)
286,554
(847,975)
2,081,558
-
7,423,134
6,773,513
Tax Consolidation
(c)
The company and its 100% owned Australian entities formed a tax consolidated group on 1 July 2013. Members of
the consolidated group have entered into a tax sharing agreement in order to allocate income tax expense to the wholly
owned Australian entities on a pro-rata basis. The agreement provides for the allocation of income tax liabilities between
the entities should the head entity default on its tax payment obligations. At balance date, the possibility of default is
remote. The head entity of the tax consolidated group is Lycopodium Limited.
Tax Effect Accounting by Members of the Tax Consolidated Group
Members of the tax consolidated group have entered into a tax funding agreement effective from 1 July 2013. The tax
funding agreement provides for the allocation of current taxes to members of the tax consolidated group. Deferred taxes
are allocated to members of the tax consolidated group in accordance with the group allocation approach, which is
consistent with the principles of AASB 112 Income Taxes.
The allocation of taxes under the tax funding agreement is recognised as an increase/(decrease) in the member entities’
intercompany accounts with the tax consolidated group head company, Lycopodium Limited. In this regard, the company
has assumed the benefit of tax losses from the member entities as of the balance date. The nature of the tax funding
agreement is such that no tax consolidated contributions by or distributions to participant’s equity are required.
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2021 Annual Financial Report2021 Annual Financial Report
Notes to the Financial Statements
Notes to the Financial Statements
30 June 2021
30 June 2021
8. CURRENT ASSETS - CASH AND CASH EQUIVALENT
9. CURRENT ASSETS - TRADE AND OTHER RECEIVABLES (CONTINUED)
Cash at bank and in hand
2021
$
2020
$
76,841,139
102,888,489
(a) Allowance for Expected Credit Loss (continued)
The expected credit loss for trade receivables as at 30 June 2021 and 30 June 2020 are as follows:
(a) Risk Exposure
The Group’s exposure to interest rate risk is discussed in note 2. The maximum exposure to credit risk at the end of the
reporting period is the carrying amount of each class of cash and cash equivalents mentioned above.
30 June 2021
Expected credit loss rate
Gross carrying amount
9. CURRENT ASSETS - TRADE AND OTHER RECEIVABLES
30 June 2020
Expected credit loss rate
Gross carrying amount
Trade receivables
Allowance for expected credit loss (a)
GST and other receivables
Cash advanced to employees
Loan to joint ventures
(a) Allowance for Expected Credit Loss
Movements in allowance for expected credit loss of trade receivables are as follows:
At 1 July
Allowance for expected credit loss recognised during the year
Unused amount reversed
Exchange difference
At 30 June
The other classes within trade and other receivables do not contain impaired assets.
2021
$
34,250,867
(1,185,825)
33,065,042
6,789,217
12,858
4,020,000
10,822,075
43,887,117
2021
$
1,228,158
-
(104,045)
61,712
1,185,825
2020
$
24,410,719
(1,228,158)
23,182,561
3,685,171
28,277
20,000
3,733,448
26,916,009
2020
$
902,701
409,595
(41,278)
(42,860)
1,228,158
Lifetime expected credit loss
-
-
-
Current
More than 30
days past due
More than 60
days past due
More than 90
days past due
0%
0%
0%
19,313,488
7,554,980
4,692,350
44.1%
2,690,049
1,185,825
Current
More than 30
days past due
More than 60
days past due
More than 90
days past due
0%
0%
17,581,968
1,798,910
0%
965,090
-
30.2%
4,064,751
1,228,158
Total
-
34,250,867
1,185,825
Total
-
24,410,719
1,228,158
Lifetime expected credit loss
-
-
(b) Risk Exposure
Information about the Group’s exposure to foreign exchange risk and interest rate risk is provided in note 2.
(c) Fair Value and Credit Risk
Due to the short-term nature of these receivables, their carrying amount is assumed to approximate their fair value.
The maximum exposure to credit risk at the reporting date is the fair value of each class of receivables mentioned above.
The Group does not hold any collateral as security. Refer to note 2 for more information on the risk management policy of
the Group.
10. CURRENT ASSETS - OTHER CURRENT ASSETS
Other current assets (a)
Prepayments
2021
$
532,468
1,950,294
2,482,762
2020
$
686,193
1,828,995
2,515,188
(a) Other Current Assets
Other current assets consist of deposits held with licensed banks as security/bond on the various properties leased by
the Group.
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2021 Annual Financial Report2021 Annual Financial Report
Notes to the Financial Statements
Notes to the Financial Statements
30 June 2021
30 June 2021
11. FINANCIAL ASSETS AND FINANCIAL LIABILITIES
11. FINANCIAL ASSETS AND FINANCIAL LIABILITIES (CONTINUED)
(a) Categories of Financial Assets and Liabilities
Notes 1(q) and 1(r) provides a description of each category of financial assets and liabilities and the related accounting
policies. The carrying amounts of financial assets and liabilities in each category are as follows:
(b) Borrowings
Borrowings include the following financial liabilities:
2021
Non-
current
$
Current
$
Total
$
Current
$
2020
Non-
current
$
Total
$
Secured
Finance leases
760,274
1,404,749
2,165,023
Total secured borrowings
760,274
1,404,749
2,165,023
Unsecured
Other loans
Total unsecured borrowings
-
-
-
-
-
-
Total borrowings
760,274
1,404,749
2,165,023
134,850
134,850
164,255
164,255
299,105
299,105
169,307
169,307
304,157
-
-
164,255
169,307
169,307
468,412
All borrowings are denominated in AUD.
Bank borrowings are secured by plant and equipment owned by the Group. Current interest rates are variable and
average 2.55% (2020: 4.99%). The carrying amount of bank borrowings is considered to be a reasonable approximation
of fair value.
Financial Assets
2021
Cash and cash equivalents
Trade and other receivables
Deposits held with banks
Investment in listed equities
Other Receivables
Financial Assets
2020
Cash and cash equivalents
Trade and other receivables
Deposits held with banks
Investment in listed equities
Other Receivables
Financial Liabilities
2021
Trade and other payables
Borrowings
Lease liabilities
Financial Liabilities
2020
Trade and other payables
Borrowings
Lease liabilities
Note
8
9
10
11(c)
12
Note
8
9
10
11(c)
12
Note
11(b)
Note
11(b)
Fair value
through profit
or loss
$
Amortised
cost
$
Total
$
-
-
-
739,920
76,841,139
76,841,139
43,887,117
43,887,117
532,468
-
-
189,413
532,468
739,920
189,413
739,920
121,450,137
122,190,057
Fair value
through profit
or loss
$
Amortised
cost
$
Total
$
-
-
-
886,377
102,888,489
102,888,489
26,916,009
26,916,009
686,193
-
-
145,092
686,193
886,377
145,092
886,377
130,635,783
131,522,160
Fair value
through profit
or loss
$
Amortised
cost
$
Total
$
-
-
-
-
12,083,924
12,083,924
2,165,023
2,165,023
15,738,888
15,738,888
29,987,835
29,987,835
Fair value
through profit
or loss
$
Amortised
cost
$
Total
$
-
-
-
-
12,503,674
12,503,674
468,412
468,412
3,190,101
3,190,101
16,162,187
16,162,187
A description of the Group’s financial instrument risks, including risk management objectives and policies is
given in Note 2.
The methods used to measure financial assets and liabilities reported at fair value are described in Note 1(q) and (r).
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2021 Annual Financial Report | Directors’ Report
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Notes to the Financial Statements
Notes to the Financial Statements
30 June 2021
30 June 2021
11. FINANCIAL ASSETS AND FINANCIAL LIABILITIES (CONTINUED)
12. NON-CURRENT ASSETS - OTHER RECEIVABLES
(c) Fair Value Measurement
Financial assets and liabilities measured at fair value in the Statement of Financial Position are grouped into three Levels
of a fair value hierarchy. The three Levels are defined based on the observability of significant inputs to the measurement,
as follows:
•
•
Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities
Level 2: inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either
directly or indirectly
•
Level 3: unobservable inputs for the asset or liability.
The following table shows the levels within the hierarchy of financial assets and liabilities measured at fair value on a
recurring basis at 30 June 2021 and 30 June 2020.
Loans under senior management share acquisition plan
Other receivables
(a)
Impaired Receivables and Receivables Past Due
None of the non-current receivables are impaired or past due but not impaired.
2021
$
109,413
80,000
189,413
2020
$
145,092
-
145,092
Level 1
$
Level 2
$
Level 3
$
Total
$
13. NON-CURRENT ASSETS -
INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD
2021
Financial assets / (liabilities)
Listed Securities
Net fair value
2020
Financial assets / (liabilities)
Listed Securities
Net fair value
739,920
739,920
Level 1
$
Level 2
$
886,377
886,377
-
-
-
-
Level 3
$
-
-
-
-
There were no transfers between Level 1 and Level 2 in 2021 and 2020.
Reconciliation
Listed securities
Balance 1 July
Additions
Revaluation
Disposals
Balance 30 June
2021
$
886,377
-
(29,790)
(116,667)
739,920
Measurement of Fair Value of Financial Instruments
The Group’s finance team performs valuations of financial items for financial reporting purposes, in consultation
with third party valuation specialists for complex valuations, where required. Valuation techniques are selected based
on the characteristics of each instrument, with the overall objective of maximising the use of market-based information.
The finance team reports directly to the Chief Financial Officer and to the audit committee.
The valuation techniques used for instruments categorised in Level 2 are described below:
Foreign currency forward contracts (Level 2)
The Group’s foreign currency forward contracts are not traded in active markets. These have been fair valued
using observable forward exchange rates and interest rates corresponding to the maturity of the contract. The effects
of non-observable inputs are not significant for foreign currency forward contracts.
739,920
739,920
Total
$
886,377
886,377
2020
$
801,945
75,000
9,432
-
886,377
Investment in joint ventures
Investment in associates
Investment in Joint Ventures
(a)
The Group has the following joint ventures:
2021
$
2,093,622
1,776,685
3,870,307
2020
$
1,911,797
1,619,126
3,530,923
Name of Joint Venture
Mondium Pty Ltd (‘Mondium’)
Orway IQ Pty Ltd (‘OIQ’) Incorporated in
May 2019
Country of
incorporation
& principal
place of
business
Australia
Australia
Proportion of ownership interest
held by the Group
Principal activities
Engineering and
construction services
Remote optimisation
consulting services
2021
40%
50%
2020
40%
50%
The Group’s share of the results of its principal joint ventures:
Profit from continuing operations
Other comprehensive income
Total comprehensive income
2021
$
181,826
-
181,826
2020
$
1,911,796
-
1,911,796
Carrying amount of the Group’s interest in joint ventures
2,093,622
1,911,796
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2021 Annual Financial Report2021 Annual Financial Report
Notes to the Financial Statements
Notes to the Financial Statements
30 June 2021
30 June 2021
13. NON-CURRENT ASSETS -
INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD (CONTINUED)
(a)
Investment in Joint Ventures (continued)
Joint ventures summarised Statement of Financial Position
Cash and cash equivalents
Current assets
Non-current assets
Total assets
Current liabilities
Non-current liabilities
Total liabilities
Net assets
Group’s share of joint ventures net assets
(b) Investment in Associates
Name of Joint Venture
ECG Engineering Pty Ltd
Country of
incorporation
& principal
place of
business
Australia
Principal activities
Electrical engineering
services
Kholo Marine & Minerals (Pty) Ltd Incorporated
July 2019
South Africa
Engineering and
consulting services
The Group’s share of the results of its principal associates:
Profit from continuing operations
Other comprehensive income
Total comprehensive income
2021
$
4,582,826
64,054,104
4,238,517
68,292,621
59,614,443
3,444,123
63,058,566
5,234,055
2,093,622
2020
$
63,213,478
80,914,787
452,266
81,367,053
76,212,538
1,995
76,214,533
5,152,520
2,061,008
Proportion of ownership interest
held by the Group
2021
31%
49%
2021
$
961,183
-
961,183
2020
31%
49%
2020
$
997,951
-
997,951
Carrying amount of the Group’s interest in associates
1,776,685
1,619,126
Included in the carrying amount of the company interest in associate is dividends of $803,624 (2020: $771,289)
14. NON-CURRENT ASSETS - PROPERTY, PLANT AND EQUIPMENT
At 1 July 2019
Cost or fair value
Accumulated depreciation
Net book amount
Year ended 30 June 2020
Fixtures
and fittings
$
Motor
vehicles
$
Leasehold
improvements
$
Leased plant
and equipment
$
Total
$
8,278,724
(6,309,318)
1,969,406
188,694
(157,345)
1,644,199
1,632,668
11,744,285
(420,844)
(1,088,326)
(7,975,833)
31,349
1,223,355
544,342
3,768,452
Opening net book amount
1,969,406
31,349
1,223,355
Additions
Disposals
Depreciation charge
Transfers
Exchange differences
472,259
(4,627)
(637,823)
227,051
(51,270)
Closing net book amount
1,974,996
-
(4,975)
(7,142)
-
(3,044)
16,188
-
-
(242,562)
-
30,772
1,011,565
544,342
137,738
-
(264,622)
(227,051)
3,768,452
609,997
(9,602)
(1,152,149)
-
-
(23,,542)
190,407
3,193,156
At 30 June 2020
Cost or fair value
Accumulated depreciation
Net book amount
Year ended 30 June 2021
Opening net book amount
Additions
Disposals
Depreciation charge
Transfers
Exchange differences
9,676,586
(7,701,590)
1,974,996
Fixtures
and fittings
$
1,974,996
2,537,663
(17,568)
(869,313)
47,439
5,653
Closing net book amount
3,678,870
At 30 June 2021
Cost
Accumulated depreciation
Net book amount
12,570,686
(8,891,816)
3,678,870
157,786
(141,598)
1,676,750
390,743
11,901,865
(665,185)
(200,336)
(8,708,709)
16,188
1,011,565
190,407
3,193,156
Motor
vehicles
$
16,188
129,377
(1,337)
(8,920)
-
1,865
137,173
271,138
(133,965)
137,173
Leasehold
improvements
$
Leased plant
and equipment
$
1,011,565
190,407
Total
$
3,193,156
2,667,040
(18,905)
(1,141,685)
-
-
-
(40,150)
(47,439)
-
(27,849)
102,818
4,671,757
-
-
(223,302)
-
(35,367)
752,896
1,613,854
137,738
14,593,416
(860,958)
752,896
(34,920)
102,818
(9,921,659)
4,671,757
60
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2021 Annual Financial Report2021 Annual Financial Report
Notes to the Financial Statements
30 June 2021
15. NON-CURRENT ASSETS - RIGHT-OF-USE ASSETS
Land and buildings – right-of-use
Accumulated depreciation
Net book amount
Additions to the right-of-use assets during the year were $15,448,289
Reconciliation
Right of use assets
Balance 1 July
Additions
Depreciation
Currency translation differences during the year
Balance 30 June
2021
$
18,639,560
(3,714,280)
14,925,280
2021
$
3,000,988
15,448,289
(3,344,937)
(179,060)
14,925,280
2020
$
4,777,832
(1,776,844)
3,000,988
2020
$
-
9,617,151
(6,616,163)
-
3,000,988
The Group leases office space under agreements of between five to eight years with, in some cases, option
to extend. The leases have various escalation clauses. On renewal, the terms of the leases are renegotiated.
The Group leases office equipment and motor vehicles under agreements of between two and five years.
These leases are either short-term or low-value, so have been expensed as incurred and not capitalised as
right-of-use assets.
16. NON-CURRENT ASSETS - DEFERRED TAX ASSETS
The balance comprises temporary differences attributable to:
Unused tax losses
Employee benefits
Doubtful debts
Accrued expenses
Deferred revenue
Other provisions
Depreciation
Finance leases
Lease liabilities
Set-off of deferred tax liabilities pursuant to set-off provisions (note 20)
Net deferred tax assets
Deferred tax assets expected to be recovered within 12 months
Deferred tax assets expected to be recovered after more than 12 months
2021
$
64,789
2,374,441
175,150
112,044
497,837
4,344,299
27,476
-
4,201,860
11,797,896
(5,608,446)
6,189,450
7,593,741
4,204,155
11,797,896
2020
$
541,646
2,217,721
57,802
200,657
117,778
941,202
9,539
58,324
631,296
4,775,965
(1,014,304)
3,761,661
4,058,400
717,565
4,775,965
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2021 Annual Financial Report2021 Annual Financial Report
Notes to the Financial Statements
Notes to the Financial Statements
30 June 2021
30 June 2021
17. NON-CURRENT ASSETS - INTANGIBLE ASSETS
17. NON-CURRENT ASSETS - INTANGIBLE ASSETS (CONTINUED)
At 1 July 2019
Cost
Goodwill
$
Software
$
Customer
contracts
$
Total
$
8,885,406
2,644,899
315,000
11,845,305
Accumulated amortisation and impairment
(2,678,132)
(2,114,726)
(315,000)
(5,107,858)
Net book amount
Year ended 30 June 2020
Opening net book amount
Additions
Amortisation charge *
Exchange differences
6,207,274
530,173
6,207,274
-
-
-
530,173
394,963
(263,035)
(30,645)
631,456
-
-
-
-
-
-
6,737,447
6,737,447
394,963
(263,035)
(30,645)
6,838,730
Closing net book amount
6,207,274
At 30 June 2020
Cost
8,885,406
2,994,488
315,000
12,194,894
Accumulated amortisation and impairment
(2,678,132)
(2,363,032)
(315,000)
(5,356,164)
Net book amount
6,207,274
631,456
-
6,838,730
Year ended 30 June 2021
Opening net book amount
Additions
Impairment
Amortisation charge *
Exchange differences
Closing net book amount
At 30 June 2021
Cost
Accumulated amortisation
Net book amount
Goodwill
$
6,207,274
-
-
-
-
6,207,274
Software
$
631,456
238,608
(60,215)
(298,165)
24,692
536,376
Customer
contracts
$
-
-
-
-
-
Total
$
6,838,730
238,608
(60,215)
(298,165)
24,692
6,743,650
8,885,406
3,142,631
315,000
12,343,037
(2,678,132)
(2,606,255)
(315,000)
(5,599,387)
6,207,274
536,376
-
6,743,650
* Group amortisation of $298,165 (2020: $263,035) is included in depreciation and amortisation expense in the
Statement of Profit or Loss and Other Comprehensive Income.
Impairment Tests for Goodwill
(a)
Goodwill is allocated to the Group cash-generating units (CGUs) identified according to business segment and country
of operation.
A segment-level summary of the goodwill allocation is presented below.
2021
Minerals
Metallurgical
2020
Minerals
Metallurgical
Australia
$
Other
countries
$
Total
$
3,622,991
2,465,026
6,088,017
119,257
-
119,257
3,742,248
2,465,026
6,207,274
Australia
$
Other
countries
$
Total
$
3,622,991
2,465,026
6,088,017
119,257
-
119,257
3,742,248
2,465,026
6,207,274
(b) Key Assumptions Used for Value-in-Use Calculations
The recoverable amount of each CGU within the business segment is determined on the basis of value-in-use (VIU).
All key assumptions below have been adjusted to take into account the impacts of COVID-19 on the respective CGU’s.
In the Minerals CGU, our experience and strength in the gold sector and opportunities in sustaining capital works projects
underpins the forecast growth both internationally and domestically.
The following describes the assumptions on which management has based its cash flow projections when determining
value in use:
Growth Rate
The growth rate represents a steady indexation rate which does not exceed management’s expectations of the long term
average growth rate for the business in which each CGU operates. The rate applied in the cash flow projection is 1.4%
(2020: 1.4%).
Discount Rate
For the Australian CGUs, the pre-tax discount rate applied to cash flow projections is 6.80% (2020: 5.64%) and for the
Minerals CGUs in other countries, the pre-tax discount rate is 13.80% (2020: 13.96%).
Cash Flows
Value-in-use calculations use cash flow projections from approved budgets based on past performance and expectations
for the future covering a three year period.
Revenue
The value-in-use model is based on the budget approved by the Board. The forecast budget process was developed
based on revenue expectations for the year built around existing customer contracts along with the potential to develop
new markets and sustain growth.
Sensitivities
The Board has performed sensitivities around all key assumptions disclosed above. There are no fluctuations to any of the
assumptions that could reasonably occur that would cause the recoverable amount of the CGU to be equivalent to that of
the carrying amount of the CGUs assets.
64
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2021 Annual Financial Report2021 Annual Financial Report
Notes to the Financial Statements
Notes to the Financial Statements
30 June 2021
30 June 2021
17. NON-CURRENT ASSETS - INTANGIBLE ASSETS (CONTINUED)
19. CURRENT LIABILITIES – PROVISIONS
(c) Cash Flow Assumptions
Minerals, Infrastructure and Metallurgical
Apart from the considerations described in determining the value-in-use of the cash-generating units described above,
the Board is not currently aware of any other probable changes that would necessitate changes in its key estimates.
18. CURRENT LIABILITIES - TRADE AND OTHER PAYABLES
Trade payables
Goods and services tax (GST) payable
Sundry creditors and accrued expenses
Employee benefit obligations (a)
2021
$
4,731,031
3,315,182
7,352,893
7,572,761
22,971,867
2020
$
6,918,615
3,288,840
5,585,059
7,418,987
23,211,501
Included in the above are financial liabilities of $12,083,924 (2020: $12,503,674).
(a) Amounts not Expected to be Settled Within the Next 12 Months
Employee benefit obligations include accruals for annual leave and unconditional entitlements of long service leave.
The entire obligation is presented as current, since the Group does not have an unconditional right to defer settlement.
However, based on past experience, the Group does not expect all employees to take the full amount of accrued leave
within the next 12 months.
The following amounts reflect leave that is not expected to be taken within the next 12 months:
Annual leave obligation expected to be settled after 12 months
Long service leave obligation expected to be settled after 12 months
(b) Risk Exposures
Details of the Group’s exposure to foreign exchange risk is provided in note 2.
2021
$
1,293,083
1,338,608
2,631,691
2020
$
988,169
1,275,578
2,263,747
Service and equipment warranties
2021
$
2020
$
13,340,431
2,318,125
(a) Movements in Provisions
Movements in each class of provision during the financial year, other than employee benefits, are set out below:
2021
Carrying amount at beginning of year
Provisions recognised
Carrying amount at end of year
Service and
equipment
warranties
$
2,318,125
11,022,306
13,340,431
Total
$
2,318,125
11,022,306
13,340,431
The Group recognises service and equipment warranty provisions in accordance with its current policy. The amount
provided takes into account the percentage completion of the project, forecast to complete costs plus any close-out
obligations and potential contractual liabilities during the warranty period.
20. NON-CURRENT LIABILITIES - DEFERRED TAX LIABILITIES
The balance comprises temporary differences attributable to:
Accrued income
Other provisions
Depreciation & amortisation
Prepaid expenses
Right-of-use assets
Set-off of deferred tax liabilities pursuant to set-off provisions (note 16)
Net deferred tax liabilities
Deferred tax liabilities expected to be settled within 12 months
Deferred tax liabilities expected to be settled after more than 12 months
2021
$
199,548
1,359,638
42,461
10,540
3,996,259
5,608,446
(5,608,446)
-
1,569,726
4,038,720
5,608,446
2020
$
182,859
10,344
200,698
34,946
585,457
1,014,304
(1,014,304)
-
813,605
200,699
1,014,304
Movements
At 1 July 2019
Charged/(credited)
- profit or loss
At 30 June 2020
At 1 July 2020
Charged/(credited)
- profit or loss
At 30 June 2021
Depreciation
&
amortisation
$
117,128
83,570
200,698
200,698
Accrued
income
$
241,381
(58,522)
182,859
182,859
Other
provisions
$
Prepaid
expenses
$
Right-of-use
assets
$
Total
$
66,018
40,705
-
465,232
(55,674)
10,344
10,344
(5,759)
34,946
34,946
585,457
585,457
585,457
549,072
1,014,304
1,014,304
(158,237)
16,689
1,349,294
(24,406)
3,410,802
4,594,142
42,461
199,548
1,359,638
10,540
3,996,259
5,608,446
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2021 Annual Financial Report2021 Annual Financial Report
Notes to the Financial Statements
30 June 2021
21. NON-CURRENT LIABILITIES - PROVISIONS
Employee benefits - long service leave
22. CONTRIBUTED EQUITY
(a) Share Capital
2021
$
165,864
2020
$
128,135
Details of the Company’s exposure to foreign exchange risk is provided in note 2.
Ordinary shares
Fully paid
2021
$
2020
$
2021
$
2020
$
39,740,226
39,732,373
20,854,574
20,823,772
On 6 July 2020, 7,853 (2020: nil) ordinary shares at issue price of $30,802 were issued as a result of performance rights
being exercised.
The average issue price of ordinary shares fully paid is $0.52.
(b) Ordinary Shares
On a show of hands every holder of ordinary shares present at a meeting in person or by proxy, is entitled to one vote,
and upon a poll each share is entitled to one vote.
(c) Capital Risk Management
The Group’s objectives when managing capital are to safeguard its ability to continue as a going concern, to continue to
provide returns for shareholders and benefits for other stakeholders and to maintain an optimal capital structure to reduce
the cost of capital.
In order to maintain or adjust the capital structure, the Group may adjust the amount of dividends paid to shareholders,
return capital to shareholders, issue new shares or sell assets to reduce debt.
Consistent with others in the industry, the Group monitors capital on the basis of the gearing ratio. This ratio is calculated
as net debt divided by total capital. Net debt is calculated as total borrowings (including ‘borrowings’ and ‘trade and other
payables’ as shown in the Consolidated Statement of Financial Position) less cash and cash equivalents. Total capital is
calculated as ‘equity’ as shown in the Consolidated Statement of Financial Position (including non-controlling interests)
plus net debt.
During 2021, the Group’s strategy was to maintain a gearing ratio of less than 40%. The gearing ratios at 30 June 2021
and 30 June 2020 were as follows:
Total borrowings (including payables)
Less: cash and cash equivalents
Net debt
Total equity
Total capital
Gearing ratio
2021
$
42,192,253
(76,841,139)
(34,648,886)
87,673,819
53,024,933
(40)%
2020
$
71,337,316
(102,888,489)
(31,551,173)
77,842,621
46,291,448
(41)%
Notes to the Financial Statements
30 June 2021
23. RESERVES
Performance rights reserve
Foreign currency translation reserve
Movements
Performance rights reserve
Balance 1 July
Performance rights plan expense
Transfer to share capital - exercise of rights
Balance 30 June
Foreign currency translation reserve
Balance 1 July
Currency translation differences arising during the year
Balance 30 June
(a) Nature and Purpose of Reserves
2021
$
623,021
(852,957)
(229,936)
2021
$
215,306
438,517
(30,802)
623,021
2020
$
215,306
(2,062,155)
(1,846,849)
2020
$
-
215,306
-
215,306
(2,062,155)
1,209,198
(852,957)
(602,928)
(1,459,227)
(2,062,155)
Performance Rights Reserve
(i)
The performance rights reserve is used to recognise the fair value of rights issued to certain directors or employees during
the year.
(ii) Foreign Currency Translation Reserve
Exchange differences arising on translation of foreign controlled entities are recognised in other comprehensive income as
described in note 1(e) and accumulated in a separate reserve within equity. The cumulative amount is reclassified to profit
or loss when the net investment is disposed of.
24. RETAINED EARNINGS
Balance 1 July
Profit for the year
Dividends paid or payable
Balance 30 June
2021
$
59,520,395
14,199,449
(5,961,033)
67,758,811
2020
$
59,636,154
11,803,953
(11,919,712)
59,520,395
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2021 Annual Financial Report2021 Annual Financial Report
Notes to the Financial Statements
Notes to the Financial Statements
30 June 2021
30 June 2021
25. NON-CONTROLLING INTERESTS
Share capital
Reserves
Non-controlling interest on acquisition
Retained earnings
26. DIVIDENDS
(a) Ordinary Shares
Final dividends for year ended 30 June 2020 of 5.0 cents (2019: 15.0 cents)
per fully paid share paid on 9 October 2020 (2019: 11 October 2019)
Fully franked based on tax paid at 30% (2020: 30%)
Interim dividend for the year ended 30 June 2021 of 10.0 cents (2020: 15.0 cents)
per fully paid share paid on 8 April 2021 (2020: 7 April 2020)
Fully franked based on tax paid at 30% (2020: 30%)
Total dividends provided for or paid
2021
$
13,264
4,003
(288,240)
(438,657)
(709,630)
2020
$
13,264
4,003
(288,240)
(383,724)
(654,697)
2021
$
2020
$
1,987,011
5,959,856
3,974,022
5,959,856
5,961,033
11,919,712
27. REMUNERATION OF AUDITORS
During the year the following fees were paid or payable for services provided by the auditor of the parent entity,
its related practices and non-related audit firms:
(a) RSM Australia Partners (2020: RSM Australia Partners)
Audit and other assurance services
Audit and review of financial reports
Total remuneration
2021
$
174,500
174,500
2020
$
169,875
169,875
(b)
Non-RSM Australia Partners (2020: Non-RSM Australia Partners)
(i)
Audit and other assurance services
Audit and other assurance services
Audit and review of financial statements
Taxation services
Tax compliance services (including income tax returns)
Total remuneration of network firms of RSM Australia Partners
2021
$
2020
$
-
-
-
-
-
-
(b) Dividends Not Recognised at the End of the Reporting Period
(c) Non-RSM Australia Partners (2020: Non-RSM Australia Partners)
In addition to the above dividends, since year end the Directors have recommended
the payment of a final dividend of 15.0 cents per fully paid ordinary share (2020:
5.0 cents), fully franked based on tax paid at 30%. The aggregate amount of the
proposed dividend expected to be paid on 8 October 2021 out of retained earnings
at 30 June 2021, but not recognised as a liability at year end, is
2021
$
2020
$
5,961,034
1,987,011
(c) Franked Dividends
Franking credits available for subsequent reporting periods based on a tax rate of
30% (2020: 30%)
2021
$
2020
$
14,203,976
13,916,585
The above amounts are calculated from the balance of the franking account as at the end of the reporting year, adjusted
for franking credits and debits that will arise from the settlement of liabilities or receivables for income tax and dividends
after the end of the year:
(a)
franking credits that will arise from the payment of the amount of the provision for income tax
(b)
franking debits that will arise from the payment of dividends recognised as a liability at the reporting date, and
(c)
franking credits that will arise from the receipt of dividends recognised as receivables at the reporting date.
The consolidated amounts include franking credits that would be available to the parent entity if distributable profits of
subsidiaries were paid as dividends.
The impact on the franking account of the dividend recommended by the directors since year end, but not recognised as
a liability at year end, will be a reduction in the franking account of $2,554,729 (2020: $851,576).
Audit and other assurance services
Audit and review of financial statements
Taxation services
Tax compliance services (including income tax returns)
Other services
Other services
Total remuneration of non-RSM Australia Partners audit firms
Total auditors' remuneration
2021
$
2020
$
110,440
156,928
41,103
37,083
15,386
166,929
104,850
298,861
341,429
468,736
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2021 Annual Financial Report2021 Annual Financial Report
Notes to the Financial Statements
Notes to the Financial Statements
30 June 2021
30 June 2021
30. RELATED PARTY TRANSACTIONS (CONTINUED)
(e) Outstanding Balances Arising from Sales/Purchases of Goods and Services
The following balances are outstanding at the end of the reporting year in relation to transactions with related parties:
Current receivables
Associates and joint ventures
Current payables
Associates
(f) Loans to/from Related Parties
Loans to joint ventures
Beginning of the year
Loans advanced
Repayments made
End of the year
2021
$
2020
$
800,960
496,027
588,497
547,109
2021
$
20,000
4,000,000
-
4,020,000
2020
$
820,000
20,000
(820,000)
20,000
Total loan commitment to Mondium is up to $24 million.
There is no allowance account for impaired receivables in relation to any outstanding balances, and no expense has been
recognised in respect of impaired receivables due from related parties.
(g) Terms and Conditions
Purchases and sales of goods and services with statutory joint ventures are made at cost.
Purchases and sales of goods and services with the associate are made at arms-length.
Loans advanced to the joint venture is repayable within 12 months. Interest is payable on the loan at a rate of 2.05%
per annum.
Outstanding balances are unsecured and are repayable in cash.
28. CONTINGENCIES
The Group had contingent liabilities at 30 June 2021 and 30 June 2020 in respect of:
(a) Contingent Liabilities
(i) Guarantees
Guarantees are given in respect of rental bonds for $2,174,870 (2020: $1,830,584).
These guarantees may give rise to liabilities in the event that the Group defaults on its obligations under the terms of the
lease agreement for its premises at 1 Adelaide Terrace, East Perth, 60 Leichhardt Street, Spring Hill, 253-269 Wellington
Road, Mulgrave, 138-140 Beaumont Street, Hamilton, Centennial Place, Century Boulevard, Century City, Cape Town,
South Africa and Golf Park, Cape Town, South Africa.
Insurance bonds of $13,915,789 are provided in respect of performance and defects warranty as at 30 June 2021
(2020: $18,637,215).
No material losses are anticipated in respect of any of the above contingent liabilities (2020: Nil).
29. COMMITMENTS
(a) Capital Commitments
There was no capital expenditure contracted for at the reporting date which has not been recognised as a liability
(2020: Nil).
30. RELATED PARTY TRANSACTIONS
(a) Parent Entity
The parent entity within the Group is Lycopodium Limited, which is incorporated in Australia.
(b) Subsidiaries
Interests in subsidiaries are set out in note 31.
(c) Key Management Personnel
Short-term employee benefits
Post-employment benefits
Share-based payments
2021
$
2,716,914
152,129
233,286
3,102,329
2020
$
2,716,132
184,803
71,092
2,972,027
Detailed remuneration disclosures are provided in the Remuneration Report on pages 14 to 18.
(d) Transactions with Other Related Parties
The following transactions occurred with related parties:
Sales of goods and services
Sales to associates and joint ventures
Purchases of goods and services
Purchases from associates
2021
$
2020
$
9,948,179
13,943,972
5,071,260
5,398,384
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2021 Annual Financial Report2021 Annual Financial Report
Notes to the Financial Statements
30 June 2021
33. RECONCILIATION OF PROFIT AFTER INCOME TAX TO NET CASH
INFLOW FROM OPERATING ACTIVITIES
Profit for the year
Depreciation and amortisation
Loans (repaid) from/to joint venture (incl at cash flows from
financing activities)
Non-cash employee benefits expense - share-based payments
Non-cash shares received in lieu of payment for services
Net loss/on sale of non-current assets
Share of net profit of associate and joint venture accounted for using the
equity method
Interest relating to financing activities
Other expenses
Change in operating assets and liabilities:
(Increase)/Decrease in trade debtors and other receivables
Decrease in contract assets
Increase in inventories
Decrease in deferred tax assets
Decrease in other operating assets
(Decrease/increase in trade creditors
(Decrease)/Increase in contract liabilities
Decrease in provision for income taxes payable
Increase in derivative financial assets
Increase/(decrease) in other provisions
Net cash (outflow)/inflow from operating activities
2021
$
14,066,247
4,784,787
-
407,715
-
68,762
(1,143,008)
737,724
-
(14,157,278)
-
(435,092)
112,809
32,426
(929,243)
(30,602,040)
2,278,599
-
11,060,035
(13,717,557)
2020
$
11,676,626
8,031,347
(820,000)
215,306
(84,435)
9,591
(2,909,743)
604,493
(257,633)
7,478,830
1,497,467
(220,986)
301,334
1,320,463
1,272,725
33,864,162
1,255,192
(163,044)
(882,671)
62,189,024
Notes to the Financial Statements
30 June 2021
31. SUBSIDIARIES
(a) Significant Investments in Subsidiaries
The consolidated financial report incorporate the assets, liabilities and results of the following principal subsidiaries in
accordance with the accounting policy described in note 1(b):
Name of entity
Lycopodium Minerals Pty Ltd
Lycopodium Process Industries Pty Ltd
Orway Mineral Consultants (WA) Pty Ltd
Lycopodium Ghana Ltd
Lycopodium Burkina Faso SARL
Lycopodium Infrastructure Pty Ltd
Lycopodium Minerals Canada Ltd
Lycopodium Philippines Pty Ltd
Orway Mineral Consultants (Canada) Ltd
ADP Holdings (Pty) Limited
Lycopodium Asset Management Pty Ltd
Lycopodium Minerals QLD Pty Ltd
Lycopodium Rail Pty Ltd
Lycopodium Management Consulting Pty Ltd
Lycopodium Share Plan Pty Ltd
Lycopodium Rail Pty Ltd
Lycopodium Americas Pty Ltd
Lycopodium (Ghana) Pty Ltd
Orway Mineral Consultants Americas Pty Ltd
ECG Engineering (Queensland) Pty Ltd
Mondium Pty Ltd
Orway IQ Pty Ltd
ECG Engineering Pty Ltd
Kholo Marine and Minerals (Pty) Ltd
Country of
incorporation /
principal activity
Australia (1)
Australia (1)
Australia (1)
Ghana (2)
Burkina Faso (2)
Australia (1)
Canada (1)
Australia (1)
Canada (1)
South Africa (1)
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
South Africa
(1) Engineering, procurement, construction management services
(2) Offshore project support services
Class of shares
2021
%
2020
%
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
31
40
50
31
49
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
31
40
50
31
49
32. EVENTS OCCURRING AFTER THE REPORTING PERIOD
Subsequent to year end the Directors have recommended the payment of a final dividend on ordinary shares in respect
of the 2021 financial year. The total amount of the dividend is $5,961,034 (2020: $1,987,011), which represents a fully
franked dividend of 15.0 (2020: 5.0) cents per fully paid ordinary share.
With the exception of the above, no other matter or circumstances have arisen since the end of the financial year which
significantly affected or may significantly affect:
(a)
the Group’s operations in future financial years, or
(b)
the results of those operations in future financial years, or
(c)
the Group’s state of affairs in future financial years.
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2021 Annual Financial Report2021 Annual Financial Report
Notes to the Financial Statements
Notes to the Financial Statements
30 June 2021
30 June 2021
34. EARNINGS PER SHARE
(a) Basic Earnings Per Share
Basic earnings per share attributable to the ordinary equity holders of the Group
(b) Diluted Earnings Per Share
Diluted earnings per share attributable to the ordinary equity holders of the Group
2021
Cents
35.7
2021
Cents
35.5
2020
Cents
29.7
2020
Cents
29.6
(c) Reconciliation of Earnings used in Calculating Earnings Per Share
Basic earnings per share
Profit attributable to the ordinary equity holders of the Group used in
calculating basic earnings per share
Diluted earnings per share
2021
$
2020
$
14,199,449
11,803,953
Used in calculating diluted earnings per share
14,199,449
11,803,953
(d) Weighted Average Number of Shares Used as Denominator
Weighted average number of ordinary shares used as the denominator in
calculating basic earnings per share
Adjustments for calculation of diluted earnings per share:
Performance rights
Weighted average number of ordinary and potential ordinary shares used as
the denominator in calculating diluted earnings per share
2021
Number
2020
Number
39,740,226
39,732,373
277,498
40,017,724
158,223
39,890,596
35. SHARE-BASED PAYMENTS
Incentive Performance Rights Plan
(a)
Performance rights were granted to certain employees and executive directors during the year under the Lycopodium
Group Performance Rights Plan as approved at the Annual General Meeting on 21 November 2019. The rights were
designed to give incentive to the employees and Executive Directors to provide dedicated and ongoing commitment
and effort to the Group and aligning the interest of both employees and shareholders.
35. SHARE-BASED PAYMENTS (CONTINUED)
Incentive Performance Rights Plan (continued)
(a)
Set out below are summaries of rights granted under the plan:
Grant
date
2021
Expiry
date
Exercise
price
1 July 2019
28 November 2019
11 December 2020
29 June 2024
$0.00
26 November 2024 $0.00
10 December 2025 $0.00
Balance at
start of
the year
Number
Granted
during
the year
Number
Exercised
during
the year
Number
Forfeited
during
the year
Number
Balance
at end of
the year
Number
50,000
184,820
-
234,820
-
-
107,168
107,168
-
(7,853)
-
(7,853)
-
(8,647)
-
(8,647)
50,000
168,320
107,168
325,488
Grant
date
2020
Expiry
date
Exercise
price
Balance at
start of
the year
Number
Granted
during
the year
Number
Exercised
during
the year
Number
Forfeited
during
the year
Number
Balance
at end of
the year
Number
1 July 2019
28 November 2019
29 June 2024
$0.00
26 November 2024 $0.00
-
-
-
50,000
184,820
234,820
-
-
-
-
-
-
50,000
184,820
234,820
Rights exercised during the financial year 7,853 (2020: nil).
The weighted average remaining contractual life of rights outstanding at the end of the financial year was 3.7 years
(2020: 3.5).
For the rights granted during the current financial year, the valuation model inputs used to determine the fair value at the
grant date, are as follows:
Grant
date
Expiry
date
Share
price at
grant
date
Exercise
price
Expected
volatility
Dividend
yield
Risk-free
interest
rate
Fire value at
grant date
11 December 2020
10 December 2025
$4.80
$0.00
32%
4.2%
0.1%
$4.72
(b) Expenses Arising from Share-Based Payment Transactions
Total expenses arising from share-based payment transactions recognised during the period as part of employee benefit
expenses were as follows:
Rights issued under the Incentive Performance Rights Plan
2021
$
438,517
2020
$
215,306
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2021 Annual Financial Report2021 Annual Financial Report
Notes to the Financial Statements
30 June 2021
36. PARENT ENTITY FINANCIAL INFORMATION
(a) Summary Financial Information
The individual financial report for the parent entity show the following aggregate amounts:
Tailings Retreatment Project,
Western Australia
Statement of Financial Position
Current assets
Non-current assets
Total assets
Current liabilities
Non-current liabilities
Total liabilities
Net assets
Shareholders' equity
Contributed equity
Performance rights
Retained earnings
Profit for the year
Total comprehensive income
2021
$
31,849,768
45,813,335
77,663,103
4,743,593
12,157,664
16,901,257
60,761,846
20,854,574
623,021
39,284,251
60,761,846
6,440,102
6,440,102
2020
$
30,297,627
33,840,432
64,138,059
4,285,888
7,910
4,293,798
59,844,261
20,823,772
215,306
38,805,183
59,844,261
19,812,586
19,812,586
(b) Guarantees Entered Into by the Parent Entity
In 2018, the parent entity entered into an arrangement with an insurer for a standby insurance bond facility of $50.0m.
In return, the parent entity and Lycopodium Minerals Pty Ltd jointly executed a cross guarantee and indemnity as security
for the facility.
(c) Contingent Liabilities of the Parent Entity
The parent entity did not have any contingent liabilities as at 30 June 2021 or 30 June 2020.
(d) Contractual Commitments for the Acquisition of Property, Plant or Equipment
The parent entity did not have any contractual commitments for the acquisition of property, plant and equipment as at
30 June 2021 or 30 June 2020.
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79
Western Turner Syncline Phase 2 Project,
Western Australia
Directors’ Declaration
In the Directors’ opinion:
(a)
(b)
(c)
(d)
the attached financial statement and notes comply with the Corporations Act 2001, the Accounting Standards,
the Corporations Regulations 2001 and other mandatory professional report requirements;
The attached financial statement and notes comply with the International Financial Reporting Standards as issued
by the International Accounting Standards Board as described in note 1 to the financial statements;
The attached financial statements and notes give a true and fair view of the consolidated entity’s financial position
as at 30 June 2021 and of its performance for the financial year ended on that date;
There are reasonable grounds to believe that the Group will be able to pay its debts as and when they become
due and payable; and
The Directors have been given the declarations by the Managing Director and Chief Financial Officer required by
section 295A of the Corporations Act 2001.
Signed in accordance with a resolution of Directors made pursuant to section 295(5)(a) of the Corporations Act 2001.
On behalf of the Directors.
Peter De Leo
Managing Director
Lycopodium Limited
Perth
24 August 2021
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Independent Auditor’s Report
RSM Australia Partners
Level 32, Exchange Tower
2 The Esplanade Perth WA 6000
GPO Box R1253 Perth WA 6844
T +61 (0) 8 9261 9100
F +61 (0) 8 9261 9111
www.rsm.com.au
INDEPENDENT AUDITOR’S REPORT
TO THE MEMBERS OF
LYCOPODIUM LIMITED
Opinion
We have audited the financial report of Lycopodium Limited (the Company) and its subsidiaries (the Group), which
comprises the consolidated statement of financial position as at 30 June 2021, the consolidated statement of profit
or loss and other comprehensive income, the consolidated statement of changes in equity and the consolidated
statement of cash flows for the year then ended, and notes to the financial statements, including a summary of
significant accounting policies, and the directors' declaration.
In our opinion, the accompanying financial report of the Group is in accordance with the Corporations Act 2001,
including:
(i)
Giving a true and fair view of the Group's financial position as at 30 June 2021 and of its financial
performance for the year then ended; and
(ii)
Complying with Australian Accounting Standards and the Corporations Regulations 2001.
Basis for Opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those
standards are further described in the Auditor's Responsibilities for the Audit of the Financial Report section of
our report. We are independent of the Group in accordance with the auditor independence requirements of the
Corporations Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board's
APES 110 Code of Ethics for Professional Accountants (the Code) that are relevant to our audit of the financial
report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code.
We confirm that the independence declaration required by the Corporations Act 2001, which has been given to
the directors of the Company, would be in the same terms if given to the directors as at the time of this auditor's
report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
opinion.
THE POWER OF BEING UNDERSTOOD
AUDIT | TAX | CONSULTING
RSM Australia Partners is a member of the RSM network and trades as RSM. RSM is the trading name used by the members of the RSM network. Each member of the RSM network is an independent
accounting and consulting firm which practices in its own right. The RSM network is not itself a separate legal entity in any jurisdiction.
RSM Australia Partners ABN 36 965 185 036
Liability limited by a scheme approved under Professional Standards Legislation
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Key Audit Matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of
the financial report of the current period. These matters were addressed in the context of our audit of the financial
report as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.
Key Audit Matter
How our audit addressed this matter
Revenue
Refer to Note 5 in the financial statements
The Group has recognised a total of $158,062,505
revenue from contracts with customers. As disclosed
in note 1 (d), these revenues are recognised over time
as performance obligations are fulfilled.
related
Construction contracts, engineering and
services revenue is recognised by management after
assessing all factors relevant to each contract,
including specifically the following as applicable:
Determination of the stage of completion and
measurement of progress towards
performance obligations;
Estimation of total contract revenue and
costs including the estimation of cost
contingencies;
Determination of contractual entitlement and
assessment of the probability of customer
approval of variations and acceptance of
claims; and
Estimation of project completion date.
leading
This area is a key audit matter due to the number and
type of estimation events over the course of the
contract life, the unique nature of individual contract
conditions,
judgmental
revenue recognition from contracts.
Impairment of goodwill
Refer to Note 17 in the financial statements
The carrying amount of goodwill at 30 June 2021 was
$6,207,274.
to complex and
Our audit procedures included:
reviewing contractual terms with customers and
revenues and costs
substantiating project
incurred
supporting
documents;
underlying
against
assessing management’s
customers’
assumptions
in
total
total budgeted cost
the stage of completion,
determining
transaction price and
estimate;
checking mathematical accuracy of revenue and
profit recognised during the year based on the
stage of completion;
reviewing
subcontractors’
correspondence and discussing the progress of
projects with project managers for any potential
disputes, variation order claims, known technical
issues or significant events that would impact the
estimated contract costs; and
and
project
management the rationale for revisions made to
supporting
budgeted
documentation.
costs and
personnel
checked
and
discussing with
Our audit procedures included:
assessing management’s determination of how
Management performs an annual impairment test on
the recoverability of goodwill as required by Australian
Accounting Standards.
We determined this area to be a key audit matter as
management’s assessment of the value in use of the
cash generating unit (CGU) involves judgement about
the future cash flow projections, expected revenue
growth rates and the discount rate.
the
future
including
of
cash
reasonableness
goodwill is allocated to each CGU;
conducting a review of the appropriateness of the
value-in-use model used;
key
challenging
assumptions,
flow
projections, expected revenue growth rates and
the discount rate;
reviewing management’s sensitivity analysis over
the key assumptions used in the model; and
checking the mathematical accuracy of the model
and reconciliation of input data to supporting
evidence such as approved budgets and
considering the reasonableness of the budget.
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2021 Annual Financial Report2021 Annual Financial Report
Other Information
The directors are responsible for the other information. The other information comprises the information included
in the Group's annual report for the year ended 30 June 2021 but does not include the financial report and the
auditor's report thereon.
Report on the Remuneration Report
Opinion on the Remuneration Report
We have audited the Remuneration Report included in the directors’ report for the year ended 30 June 2021.
Our opinion on the financial report does not cover the other information and accordingly we do not express any
form of assurance conclusion thereon.
In our opinion, the Remuneration Report of Lycopodium Limited, for the year ended 30 June 2021, complies with
section 300A of the Corporations Act 2001.
In connection with our audit of the financial report, our responsibility is to read the other information and, in doing
so, consider whether the other information is materially inconsistent with the financial report or our knowledge
obtained in the audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this other
information, we are required to report that fact. We have nothing to report in this regard.
Responsibilities of the Directors for the Financial Report
The directors of the Company are responsible for the preparation of the financial report that gives a true and fair
view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such internal
control as the directors determine is necessary to enable the preparation of the financial report that gives a true
and fair view and is free from material misstatement, whether due to fraud or error.
In preparing the financial report, the directors are responsible for assessing the ability of the Group to continue as
a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of
accounting unless the directors either intend to liquidate the Group or to cease operations, or have no realistic
alternative but to do so.
Auditor's Responsibilities for the Audit of the Financial Report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from
material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion.
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance
with the Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements
can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably
be expected to influence the economic decisions of users taken on the basis of this financial report.
A further description of our responsibilities for the audit of the financial report is located at the Auditing and
Assurance Standards Board website at: http://www.auasb.gov.au/auditors_responsibilities/ar1.pdf. This
description forms part of our auditor's report.
Responsibilities
The directors of the Company are responsible for the preparation and presentation of the Remuneration Report
in accordance with section 300A of the Corporations Act 2001. Our responsibility is to express an opinion on the
Remuneration Report, based on our audit conducted in accordance with Australian Auditing Standards.
RSM AUSTRALIA PARTNERS
Perth, WA
Dated: 24 August 2021
JAMES KOMNINOS
Partner
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2021 Annual Financial Report2021 Annual Financial Report
Shareholder Information
The shareholder information set out below was applicable as at 6 August 2020.
A. Distribution of Equity Securities
Analysis of numbers of equity security holders by size of holding:
Holding
1 - 1000
1,001 - 5,000
5,001 - 10,000
10,001 - 100,000
100,001 and over
Total Holders
583
576
189
192
29
1,569
There were 116 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 below:
Ordinary shares
Name
1 REESH PTY LTD
2 LUALA PTY LTD
3 BNP PARIBAS NOMS PTY LTD
4 J P MORGAN NOMINEES AUSTRALIA PTY LIMITED
5 UBS NOMINEES PTY LTD (THORNEY INVESTMENT GROUP)
6 HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
7 CADDY FOX PTY LTD
8 ACCEDE PTY LTD
9 CITICORP NOMINEES PTY LIMITED
10 NATIONAL NOMINEES LIMITED
11 MONADELPHOUS GROUP LIMITED
12 BNP PARIBAS NOMINEES PTY LTD
13 MR DAVID JAMES TAYLOR
14 MR PETER DE LEO & MRS TIANA DE LEO
15 DE LEO NOMINEES PTY LTD
16 SELSO PTY LTD
17 BNP PARIBAS NOMINEES PTY LTD
18 DE LEO NOMINEES PTY LTD
19 BOTECH PTY LTD
20 NANCRIS PTY LTD
C. Substantial Holders
Substantial holders in the Company are set out below:
Name
1 REESH PTY LTD
2 LUALA PTY LTD
3 BNP PARIBAS NOMS PTY LTD
4 J P MORGAN NOMINEES AUSTRALIA PTY LIMITED
5 UBS NOMINEES PTY LTD (THORNEY INVESTMENT GROUP)
Number
held
9,046,221
3,142,332
3,068,241
2,738,074
2,732,800
2,253,936
1,054,215
992,332
833,514
700,172
603,511
434,390
426,272
423,877
331,994
266,148
216,069
207,900
203,365
175,000
29,850,363
Number
held
9,046,221
3,142,332
3,068,241
2,738,074
2,732,800
Percentage
of Units
22.76
7.91
7.72
6.89
6.88
5.67
2.65
2.50
2.10
1.76
1.52
1.09
1.07
1.07
0.84
0.67
0.54
0.52
0.51
0.44
75.11
Percentage
of Units
22.76
7.91
7.72
6.89
6.88
D. Voting rights
The voting rights attaching to each class of equity securities are set out below:
(a) Ordinary Shares
On a show of hands every member present at a meeting in person or by proxy shall have one vote and upon
a poll each share shall have one vote.
Aqueous Ammonia Dilution System,
New South Wales
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Pacific National Rail Infrastructure Management Services,
New South Wales
Corporate Directory
Registered and Principal Office
Level 5, 1 Adelaide Terrace
East Perth, Western Australia 6004
+61 8 6210 5222
Share Registry
Computershare Investor Services Pty Limited
Level 11, 172 St Georges Terrace
Perth, Western Australia 6000
+61 8 9323 2000
Lawyers to the Company
Steinepreis Paganin
Level 4, The Read Buildings
16 Milligan Street
Perth, Western Australia 6000
+61 8 9321 4000
Auditors
RSM Australia Partners
Level 32, Exchange Tower
2 The Esplanade
Perth, Western Australia 6000
+61 8 9261 9100
Principal Banker
Australia and New Zealand Bank
Level 10, 77 St Georges Terrace
Perth, Western Australia 6000
Website
www.lycopodium.com
Board of Directors
Michael John Caratti
Non-Executive Chairman
Peter De Leo
Managing Director
Rodney Lloyd Leonard
Non-Executive Director
Robert Joseph Osmetti
Non-Executive Director
Bruno Ruggiero
Executive Director
Karl Anthony Cicanese
(Appointed 23 November 2020)
Executive Director
Lawrence William Marshall
Non-Executive, Independent Director
Steven John Micheil Chadwick
Non-Executive, Independent Director
Audit Committee
Peter De Leo
Rodney Leonard
Lawrence Marshall
Remuneration Committee
Michael Caratti
Lawrence Marshall
Steven Chadwick
Risk Committee
Peter De Leo
Rodney Leonard
Bruno Ruggiero
Lawrence Marshall
Company Secretary
Justine Campbell
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Lycopodium Limited
ABN 83 098 556 159
Level 5, 1 Adelaide Terrace
East Perth, Western Australia 6004
Australia
T: +61 8 6210 5222
E: limited@lycopodium.com
lycopodium.com