More annual reports from Lycopodium Limited:
2023 ReportFinancial
Report
30 JUNE 2022
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 23 August 2022.
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
Sanbrado Gold Project, Burkina Faso
Directors’ Report
Corporate Governance Statement
FINANCIAL REPORT
Consolidated Statement of Profit or Loss & Other Comprehensive Income
Consolidated Statement of Financial Position
Consolidated Statement of Changes in Equity
Consolidated Statement of Cash Flows
Notes to the Financial Statements
Directors’ Declaration
Independent Auditor’s Report
Shareholder Information
Corporate Directory
02
25
27
28
29
30
31
81
82
86
87
Yaouré Gold Project, Côte d’Ivoire
FY2022 FINANCIAL REPORT | 30 JUNE 2022
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Review of Operations
FY2022 has been a successful year for the business, with the award of new study work and the
progression of a number of significant projects to the construction phase.
FULL YEAR RESULTS
For the financial year ended 30 June 2022, Lycopodium
generated revenue of $232.2 million and a net profit after
tax of $27.2 million. The Directors have resolved to pay a
final dividend of 36 cents per share. The total dividend for
the year is 54 cents fully franked.
ACTIVITIES FOR THE PAST YEAR
With a strong pipeline of work spanning our core
operating sectors of Resources, Infrastructure and
Industrial Processes, we have had many new people
join the Group this year, across all businesses and
geographies. During FY2022, we employed more than
950 people in our offices and on project sites around
the world.
Investment in our people is fundamental to our culture
and our ongoing success. We are committed to providing
a workplace environment that enables our people to
reach their full potential and perform at their best, and
in support of this, a number of initiatives have been
developed over the past 12 months which will be rolled
out during FY2023. This includes the introduction of
a global HR Information System (HRIS) to facilitate
workplace efficiencies. A new global Performance
& Engagement platform to support a culture of
continual performance feedback and engagement will
further supplement the HRIS. In May 2022, we launched
our inaugural Emerging Leaders Program, a nine month
leadership program focused on the development of
the middle management levels within the business
and therefore a key component of our succession
planning strategy.
Revenue
$232.2m
NPAT
$27.2m
Total
Dividend
54c
During FY2022, we employed
more than 950 people in our
offices and on project sites
around the world.
The Directors present their Annual Report to the members, together with
the audited Consolidated Financial Statements of Lycopodium Limited (the
‘Company’) and its subsidiaries (the ‘Group’ or ‘consolidated entity’), for the
financial year ended 30 June 2022 and the Statement of Financial Position
of the consolidated entity as at 30 June 2022.
DIRECTORS
The following persons were Directors of Lycopodium
Limited during the whole of the financial year and up to
the date of this report:
Michael John Caratti
Peter De Leo
Rodney Lloyd Leonard
Robert Joseph Osmetti (resigned 30 June 2022)
Bruno Ruggiero
Karl Anthony Cicanese
Lawrence William Marshall (resigned 1 April 2022)
Steven John Micheil Chadwick
Louise Bower (appointed 15 August 2022)
PRINCIPAL ACTIVITIES
The principal activities of the Consolidated entity
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 consolidated entity’s principal activities
during the financial year.
DIVIDENDS
Dividends paid to members during the financial year
were as follows:
Final fully franked dividend for the year ended 30 June 2021 of 15.0 cents (2020:
5.0 cents) per fully paid share paid on 8 October 2021 (2020: 8 October 2020).
Interim fully franked dividend for the year ended 30 June 2022 of 18.0 cents
(2021: 10.0 cents) per fully paid share paid on 7 April 2022 (2021: 8 April 2021)
2022
$
2021
$
5,961,034
1,987,011
7,153,240
3,974,022
13,114,274
5,961,033
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 $14,306,481 (36.0 cents per fully paid share) to be paid on 7 October 2022 out of retained earnings at 30 June 2022 (2021:
$5,961,034). This brings the total dividend declared for the year ended 30 June 2022 to 54.0 cents (2021: 25.0 cents).
Séguéla Gold Project, Côte d’Ivoire
2
FY2022 FINANCIAL REPORT | 30 JUNE 2022
FY2022 FINANCIAL REPORT | 30 JUNE 2022
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Review of Operations
Knowledge management continues to be a strategic
focus for the business, and significant investment has
been made in our network and systems over the past
year. This includes implementing changes to our project
collaboration software, ProjectWise, to support improved
functionality. We also upgraded to Office 365, including
the introduction of Teams and SharePoint, both very
important tools for promoting collaboration across
our global operations. Significant effort has gone into
researching and analysing options for a new enterprise
resource planning (ERP) system that will support our
Finance and Project Controls functions. It is anticipated
the chosen system will be introduced globally in FY2023,
further enabling the efficient delivery of services to our
clients and ensuring consistency in information collection
and reporting.
Being innovative and at the forefront of new technology
is critical to business sustainability, both internally in
driving business efficiency and effectiveness through
investment in our internal systems as described above,
and externally in the solutions we deliver for our clients.
This includes pursuing innovation in minerals processing
technologies and investing in prospective technologies in
order to develop future opportunities. Our commitment to
continuous improvement empowers our people to think
creatively and we celebrate and share success through
our internal innovation award.
Following the establishment of our new service offering,
Lycopodium Energy, in FY2021, we have continued
to grow our knowledge and build capability through
Bomboré Gold Project, Burkina Faso
strategic partnerships, to ultimately deliver new
services that will enable us to participate in green
energy opportunities in downstream processing,
generation and storage, and electrification. While this is
still considered an early stage initiative, we are working
in collaboration with our clients and partners to
understand and evaluate future requirements and
develop strategies to meet these.
OUTLOOK
Global economic recovery has continued into 2022, albeit
at a slower pace than 2021 due to a number of factors,
including the Russian invasion of Ukraine and consequent
sanctions, the potential for new variants of COVID-19,
persistent supply chain disruption, and growing inflation.
In the Resources sector, base metal usage is expected
to rise, as world industrial activity recovers and as the
energy transition continues, with a global impetus to build
energy and transport systems based on lower emission
sources materialising in the coming years. As Western
nations seek alternatives to Russian energy supplies, this
is likely to further accelerate the push towards developing
renewable energy solutions.
Global iron ore demand is forecast to grow steadily, as
China, the world’s largest importer, is expected to adopt
more expansionary fiscal and monetary policies going
forward following a tight stance in 2021. On the back of
historical price highs achieved in the first half of 2021, iron
ore exploration expenditure has grown. In March, China
announced a plan to diversify its iron ore supply chain
Review of Operations
and is investigating a number of possible iron ore mines
in Africa. However, given the significant investment in
mining-related and transport infrastructure required to get
minerals to market, including new ports and rail networks,
development of these prospects remains some way off
at present.
Demand for gold remains strong, buoyed by investment
in ‘safe’ assets amid rising inflation and ongoing
geopolitical uncertainty. Interestingly, consumption in
technology is increasing, with gold a critical component
in COVID-19 diagnostic tests and with its growing
application in the electronics sector, including for heart
rate tracking functionality in smartphones and watches.
The demand for lithium continues to be driven by the
use of batteries in portable electrical appliances and in
electric vehicles (EV). Surging EV sales is driving demand
not only for lithium, but a range of other critical minerals
and metals used in the production process, including
graphite, copper, nickel, manganese and cobalt.
In the Infrastructure sector, the opportunity to provide
rail infrastructure management (RIM) services is forecast
to strengthen over the coming years, with substantial
additions to railway assets over the past decade and
the current expansion of bulk freight and commuter
passenger rail transport services.
The shift to a domestic manufacturing focus in response
to the pandemic has delivered new opportunities in the
Industrial Processes sector, including for base vaccine
component production facilities. The development of
emerging markets, including waste and recycling, water
and wastewater, and hydrogen, is also continuing to drive
sector growth.
OPERATIONAL HIGHLIGHTS
During FY2022, we have built on the momentum
generated in FY2021, with the mobilisation of teams to
projects transitioning to the construction phase and the
further award of a number of new opportunities.
Resources
We continue to deliver studies and projects spanning
most major commodities, including iron ore, gold, copper,
nickel, lithium, graphite, diamonds, platinum and mineral
sands, for projects located around the world, most
notably in Africa, Australia, Southeast Asia and North
and Central America.
During calendar year 2021, the Group was awarded a
number of Engineering, Procurement and Construction
Management (EPCM) contracts, which commenced
onsite works in FY2022. This includes the Motheo
Copper Project in Botswana (Sandfire); Bomboré Gold
Project in Burkina Faso (Orezone); Ahafo North Gold
Project in Ghana (Newmont); Talison Lithium Mine
Services Area Project in Western Australia (Talison);
and the Navachab Gold Mine Expansion in Namibia
(QKR). Successfully transitioning into the delivery phase
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Western Turner Syncline Phase 2, Western Australia
for these projects, and mobilising personnel to sites
across a multitude of disparate locations, is a significant
undertaking and a credit to our operations teams.
Provision of engineering, design, procurement and
construction support for First Quantum Minerals’ Ball
Mill 6 Project at its Cobré Plant in Panama, one of
the largest copper mines in the world, was ongoing
throughout the year. The project is expanding production
capacity at the plant, adding a further 22 megawatt ball
mill to the operation.
Through the year, we continued to strengthen our
position as a premier partner in the delivery of lithium
projects, with the award of several projects in Western
Australia, including the EPCM contract for Talison
Lithium’s Chemical Grade Processing Plant #3 (CGP3),
the provision of professional engineering services for the
Lithium Hydroxide Plant 2 (LHP2) Recommencement
Project Phase 1 for Tianqi Lithium, and the early works
scope, followed by the full EPCM contract, for the delivery
of the Kathleen Valley Lithium Project for Liontown
Resources. We were also awarded the Engineering,
Procurement and Secondment Services contract for
FY2022 FINANCIAL REPORT | 30 JUNE 2022
5
Review of Operations
the Goulamina Lithium Project in Mali, one of the largest
lithium deposits in the world, and the EPCM contract for
Lepidico Limited’s Phase 1 Integrated Project for delivery
of the concentrator in Namibia and the chemical plant in
the United Arab Emirates.
It is fantastic to have secured such a strong pipeline of
projects in Australia to complement our offshore work,
providing our people with plenty of opportunity to engage
with the exciting projects we are involved with around
the globe.
We are pleased to continue our work on the Batu Hijau
Process Plant Expansion Project in Indonesia for PT
Amman Mineral Nusa Tenggara, with award of the
Engineering Services contract following delivery of the
Front End Engineering and Design (FEED). Batu Hijau
is the second largest copper and gold mine in Indonesia
and represents a strategic project win for Lycopodium,
underpinning our growth strategy in the Asia-Pacific
region on major brownfield and greenfield projects.
Continuing our long-standing relationship with
Endeavour Mining, during the year we were awarded
the early works for the Sabodala-Massawa Expansion
Project, supporting the integration and expansion of the
Sabodala-Massawa complex, the largest producing gold
mine in Senegal. We were also awarded an early phase
scope for Endeavour’s Lafigué Project in Côte d’Ivoire.
Also in Côte d’Ivoire, our team in Toronto progressed
delivery of Fortuna Silver Mines’ Séguéla Gold Project
during the year, with our scope including the design,
supply and project delivery of the processing plant,
plant site buildings and associated infrastructure.
Our Canadian operations have continued to expand,
establishing relationships with key clients based in the
Americas, including Aya Gold & Silver Inc, for whom we
delivered the FEED for the Zgounder Expansion Project in
Morocco and the Feasibility Study (FS) for the Tijirit Gold
Project in Mauritania.
ADP Marine & Modular (ADP), our specialist subsidiary
in Cape Town, continues to work closely with a
number of key clients. This includes Namdeb, a joint
venture between De Beers and the Government of the
Republic of Namibia, who is extending the life of its
land-based operations for a further 20 years. Also with
De Beers/Anglo American, ADP is undertaking the FS for
the FutureSmart Diamond Processing Plant in Canada.
The team in Cape Town also continues to work with
Paladin Energy on its restart project for the Langer
Heinrich Mine in Namibia, a significant asset in the
global nuclear fuel energy cycle. A particular highlight for
ADP in FY2022 was the development of the Dry Mining
Unit (DMU), which is being commissioned on site in Q3
2022 at the Grande Côte mineral sands operation in
Senegal. More information on the DMU is provided in the
Innovation section of this report.
Finally, a particular highlight for the year was achieving
first ore at Rio Tinto’s Western Turner Syncline Phase 2
Riverina Intermodal Freight and Logistics Hub,
New South Wales
Project in the Pilbara in October 2021. Delivered under
an Engineering, Procurement and Construction (EPC)
scope by Mondium, our incorporated joint venture with
Monadelphous, this significant project was completed
from start to finish within the constraints posed by
COVID-19, which presented many challenges along the
way. Also under the remit of Mondium, the EPC contract
for the delivery of Talison Lithium’s Tailings Retreatment
Project at Greenbushes in the south-west of Western
Australia successfully progressed to the commissioning
and handover stage in early 2022.
Infrastructure
In Infrastructure, we continue to provide design,
engineering, technical advisory and RIM services for
greenfield and brownfield rail projects, supporting
Australia’s major passenger and freight rail system
operators, including New South Wales’ Country
Regional Network (CRN), Pacific National and Aurizon.
A particularly interesting project being undertaken is
the provision of services to Transport Heritage NSW to
upgrade approximately 17 kilometres of heritage railway
between Picton and Colo Vale. The Loop Line Upgrade
Project will enable heritage trains to return to Colo Vale for
the first time in over 30 years.
Industrial Processes
Our Industrial Processes business has benefited from
the increase in opportunities borne from the refocus on
domestic manufacturing resulting from the supply chain
disruptions experienced during the pandemic, providing
design consultancy services to Commonwealth Serum
Laboratories (CSL) for the development of base vaccine
component production and plasma and blood facilities.
This includes securing the detailed engineering scope for
CSL’s world-class influenza vaccine manufacturing facility
being built in Melbourne. The team has also continued
its long-standing partnership with Australia’s Nuclear
Science and Technology Organisation (ANSTO), providing
ongoing services for the Australian Synchrotron, a major
research facility and one of Australia’s most significant
pieces of scientific infrastructure.
Review of Operations
INNOVATION
Our commitment to continuous improvement – doing
things better, working smarter for our clients, and using
our vast experience and knowledge to uncover innovative
solutions to complex problems – has seen us progress a
number of key innovations during FY2022.
It is estimated the solution will provide a 10 fold saving
in energy usage when compared to the conventional
load and haul method, and as haulage represents a
significant proportion (estimated to be around 25%) of
total energy consumption in mining, the sustainability
impact of this innovative solution is considerable over
the life of the mine.
Dry Mining Unit
The Dry Mining Unit, which was developed
by ADP during FY2021, combines underwater track
crawler technology with high capacity skid-mounted
materials handling and sand pumping systems, into
a single 400 tonne remotely controlled mobile sand
processing machine.
The unit was manufactured in Cape Town and trial
assembled and tested earlier this year before being
disassembled and shipped to Senegal for commissioning
on site at the Grande Côte mineral sands operation,
the largest single dredge mineral sands operation in the
world, in Q3 2022.
The technology represents an innovative operating
cost 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 efficiency compared to conventional
tramming is substantial, with the machine relocated
weekly to keep front end loader tramming distance to
a minimum, thereby lowering diesel fuel consumption
and carbon emissions.
Dry Mining Unit
Digital Twin
During FY2022, ADP has continued to work
collaboratively with its client in the development of a
connected digital twin using dynamic simulation and
other leading-edge integration software and specialist
proprietary applications (apps) tailored to specific minerals
of interest.
Under this approach, 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 interface for operations and
plant maintenance, linked to the connected digital twin
running in the background. The simulator is dynamically
linked to the mine plans and utilises geo-metallurgical
data to predict and optimise plant performance and
blending.
This software technology facilitates extensive options
analysis and scenario planning during the project study
phases, significantly reducing the manhours required by
both Lycopodium and the client to make a final process
decision. Once deployed, the digital twin provides
clients with a vast array of project whole-of-life benefits
that will lead to better designs, more efficient energy
utilisation and ultimately lower carbon intensity per unit
of production. The digital twin also provides a tool to test
decarbonisation strategies and potential pathways for
absolute reduction in carbon emissions.
Orway IQ
MillROC (Mill Remote Optimisation Consulting and
Coaching) continues to be developed by Orway IQ
(OIQ), which is a collaboration between Process IQ and
our wholly-owned subsidiary company, Orway Mineral
Consultants (OMC).
This online platform provides cloud-based, customised
data analysis and dashboards for optimisation of mineral
processing plants and is used by OIQ’s specialist
metallurgists and advanced process control consultants
to deliver real-time coaching and implementation of
continuous improvement in plant operations, ultimately
driving efficiency and reducing the carbon intensity of
concentrates and metals produced in the mining process.
Based initially around comminution circuit optimisation,
OIQ is expanding MillROC to provide similar services for
processing downstream of comminution. In addition to
the customised data analysis originally incorporated in the
platform, multivariable regression analysis and machine
learning tools have been added for deeper analysis of
complex systems.
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FY2022 FINANCIAL REPORT | 30 JUNE 2022
FY2022 FINANCIAL REPORT | 30 JUNE 2022
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Our commitment includes the provision of funding
and specialist expertise over a five year term which
commenced in 2021.
CSIRO
In another collaboration with industry, we are working
with the CSIRO to consider options and areas of research
that could lead to a material reduction in the carbon
footprint of the High Pressure Acid Leaching (HPAL)
process for nickel laterite processing.
Nickel is a key metal in the burgeoning global battery
industry for electric vehicles, among other applications.
Forecast demand for nickel is unlikely to be met by the
traditional smelting of concentrates from nickel sulphide
ores and the shortfall is expected to be met through an
increase in the processing of nickel laterite ores that are
processed using HPAL, which has a carbon footprint
significantly higher than the traditional smelting route.
Renewable Energy
Advances in energy storage are key to displacing diesel
from mining operations. Energy storage solutions revolve
around batteries and hydrogen, each with their own
unique applications.
We are participating in a range of battery storage
research projects, including at the Fekola Gold Mine in
Mali and the Sukari Gold Mine in Egypt, and are also
undertaking a Definitive Feasibility Study (DFS) for Lithium
Australia for the production of lithium ferro phosphate
(LFP) battery pre-cursor material. LFP is emerging as
a primary battery material for passenger cars, recently
surpassing nickel, manganese and cobalt (NMC) batteries
in global sales.
Our participation in hydrogen projects includes the
Hydrogen Energy Supply Chain (HESC) project at the
Port of Hastings in Victoria, a world-first pilot project
focused on safely and efficiently converting locally
produced clean hydrogen for international transportation.
We are also providing the FEED for the hydrogen
electrolyser project for Chiyoda Corporation in Gladstone,
Queensland and the hydrogen refuelling infrastructure for
Anglo American at its Mogalakwena open-pit platinum
mine in South Africa.
Review of Operations
Cathode Precursor Production Pilot Plant,
Western Australia
FBICRC
Lycopodium is a participant in the Future Battery
Industries Cooperative Research Centre (FBICRC) based
at Curtin University in Western Australia, supporting
the development of capability to capture the significant
opportunities associated with the energy transition for
Australia from the growing global battery industry.
The FBICRC brings together industry, researchers,
governments and the community to ensure Australia
plays a leading role in the global battery revolution, with
greater participation across the value chain.
Of the 16 foundation projects being pursued under the
FBICRC, we are directly participating in five of these:
•
Innovative Nickel and Cobalt Extraction
Technologies
• Enhancing Lithium Extraction
•
•
•
Cathode Precursor Production Pilot Plant
Chemical Processing of Vanadium and
Manganese Ores for Battery Materials
Recycling, Reuse and Repurposing of
Spent Batteries
backup in the event of a shortage resulting from the
pandemic, moved into the testing phase on the ground
in African hospitals, facilitated by our partnership
with Australian Doctors for Africa. We intend to make
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.
Throughout the year, the Group continued to support
various charitable initiatives championed by our staff,
including Jeans for Genes, for which we have raised more
than $380,000 since our partnership began back in the
1990’s, and the St Vincent de Paul Society.
Our membership with 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
FY2022 has been a rewarding year for the
business and the fact that we have been able
to continue to win work, provide opportunities
for new people to join the business and support
our clients to deliver their projects, despite the
pandemic prevailing for two years, is a reflection
of the strength, commitment and resilience of
our people. On behalf of the Board of Directors,
I thank our staff for your incredible effort and
loyalty over this period, you have truly embodied
what it means to be a Lycopod.
I would also like to acknowledge and thank
two of our Directors who retired during the
year, both of whom were founding partners of
Lycopodium. Laurie Marshall and Bob Osmetti
were instrumental in the development of the
Company from our early days as a privately
owned engineering consultancy to the global
organisation we are today.
Finally, thank you to our clients. You continue
to put your trust in us and we are very proud of
the many long-standing partnerships we enjoy
with you.
Review of Operations
HSE AND COMMUNITY
Our commitment to providing a safe working environment
for our people and delivering projects safely for our clients
is intrinsic to our culture and a fundamental metric of our
success.
With a number of significant projects mobilising to site
during the period, we implemented initiatives to support
safe practices across our managed sites, including a
‘Back to Basics’ campaign, reinforcing that all incidents
are preventable if risk is understood and proactively
managed.
During FY2022 there were 3.2 million manhours worked,
with a Lost Time Injury Frequency Rate (LTIFR) of 0.3
against an Australian construction industry average of
8.5. While our LTIFR remains extremely low by industry
standards, we will continue to prioritise safety across
our business and strive for continuous improvement,
providing our people with the tools and resources
required to maintain our exemplary standards.
We support the communities in which we live and
work, in particular social development and education
endeavours, through the Lycopodium Foundation.
This includes our well established partnerships with
the Murlpirrmarra Connection and the Clontarf
Foundation in Australia, with both organisations
supporting the education, self-esteem, life skills and
employment prospects of young Aboriginal and Torres
Strait Islander people.
In Africa, we have worked with BASICS International,
a non-government organisation (NGO) committed
to protecting the basic human rights of children to
education, shelter, food and safety, for many years.
In 2010, we assisted BASICS to build a school in Ghana,
affectionately referred to as ‘Nana’s House’ that has
enriched the lives of children living in poor communities
of Accra for over a decade now. Having endured Ghana’s
harsh coastal environment over the years, Nana’s House
was in need of some significant repairs and maintenance,
and during the year we provided the funds to undertake
these works, giving Nana’s House a new lease on life.
Also in Ghana, we partnered with The Pearl Safe Haven,
an NGO operating an emergency shelter for survivors
of sexual and domestic violence in Accra, providing the
funds to enable them to construct a wall to secure the
perimeter of their facility.
In response to the pandemic, we launched a Donation
for Vaccination campaign with our staff, encouraging
them to get vaccinated and pledging funds to UNICEF’s
global COVID-19 Appeal for every vaccination certificate
received. Funds donated through this initiative facilitated
the delivery of critical supplies, including masks, vaccines
and oxygen, to vulnerable communities in need around
the world.
LycoVent, the electrically operated ventilator designed
and fabricated by Lycopodium for use as an emergency
8
FY2022 FINANCIAL REPORT | 30 JUNE 2022
FY2022 FINANCIAL REPORT | 30 JUNE 2022
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Review of Operations
A summary of consolidated revenues and results for the financial period by reportable operating segment is
set out below:
Information on Directors
Michael John Caratti BE (Elec) (Hons)
Non-Executive Chairman
Minerals - Asia Pacific
Minerals - North America
Minerals - Africa
Project services - Africa
Process Industries
Other
Segment revenues
Segment results
2022
$
2021
$
2022
$
2021
$
104,576,794
88,202,707
28,432,069
13,909,841
51,155,417
20,307,900
42,514,478
33,077,346
7,269,200
747,888
11,653,876
7,388,070
28,733,157
26,638,281
2,420,380
7,987,780
1,611,640
2,597,395
2,734,374
1,868,798
5,824,933
51,596
558,868
4,284,542
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 programmes.
Mr Caratti is a Director of Orway Mineral Consultants (WA) Pty Ltd.
Length of service
25 October 2001 to present
Other current directorships
Former directorships in last 3 years
None
None
Special responsibilities
Chairman of the Board
Chairman of the Corporate Governance Committee
Member of the Remuneration Committee
Intersegment eliminations
(16,272,730)
(14,828,062)
-
-
Interests in shares and options
Ordinary shares of Lycopodium Limited
9,109,367
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Unallocated
Total
Income tax expense
Profit for the year
Less: Loss/(profit) attributable to non-controlling interest
Profit attributable to owners of Lycopodium Ltd
(12,074,774)
(7,423,134)
26,851,874
14,066,247
325,827
133,202
27,177,701
14,199,449
2,526,641
641,518
(6,856,989)
(5,009,197)
232,156,833
162,175,648
38,926,648
21,489,381
Peter De Leo BE (Civ), CPEng, FIEAust
Managing Director
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
2022 financial year. The total amount of dividend is $14,306,481 which represents a fully franked dividend of 36.0 cents
per fully paid ordinary share.
With the exception of the above, no other matter or circumstance has arisen since 30 June 2022 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.
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
Non-Executive Director of Argosy Minerals 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
896,711
Rodney Lloyd 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
Refer to the Review of Operations section within the Directors’ Report for information regarding the likely developments
and expected results.
Special responsibilities
Member of the Corporate Governance Committee
Member of the Audit Committee
Chairman of the Risk Committee
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.
Interests in shares and options
Ordinary shares of Lycopodium Limited
979,215
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 was 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 30 June 2022
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
* Resigned 30 June 2022
10
FY2022 FINANCIAL REPORT | 30 JUNE 2022
FY2022 FINANCIAL REPORT | 30 JUNE 2022
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Information on Directors
Information on Directors
Bruno Ruggiero BE (Mech), Grad Dip Min Sc, Grad Cert Eng Tech, MIEAust
Executive Director
Louise Bower HBCompt (Accounting Science), CA
Non-Executive, Independent 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
Experience and expertise
Ms Bower is a chartered accountant with more than 25 years’ international experience
in senior finance and corporate governance roles in both executive and non-executive
capacities, predominately in the Resources and Technology sectors.
Length of service
15 August 2022 to present
Other current directorships
Non-Executive Director of DUG Technology Ltd
Non-Executive Director of Babylon Pumps & Power Ltd
Former directorships in last 3 years
None
Special responsibilities
Member of the Audit Committee
Interests in shares and options
Ordinary shares of Lycopodium Limited
Nil
Interests in shares and options
Ordinary shares of Lycopodium Limited
3,192,332
* Appointed 15 August 2022
Karl Anthony Cicanese, MBA
Executive Director
COMPANY SECRETARY
The Company Secretary is Ms Justine Campbell BBus (Acc and Fin), Chartered Accountant.
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.
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.
Length of service
23 November 2020 to present
Other current directorships
Former directorships in last 3 years
None
None
Special responsibilities
Member of the Corporate Governance Committee
Interests in shares and options
Ordinary shares in Lycopodium Limited
200
Lawrence William 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, 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 1 April 2022
Other current directorships
Former directorships in last 3 years
None
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
* Resigned 1 April 2022
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 in Lycopodium Limited
19,657
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 2022, and the numbers of meetings attended by each Director were:
Board
Audit
Remuneration
Risk
Board Committees
11
11
11
11
10
8
6
11
10
2
2
Number of Meetings Attended
*
2
2
*
*
2
*
*
2
2**
*
*
*
1
2
*
2
*
2
2
*
2
1
*
*
Number of Meetings Held
Michael Caratti
Peter De Leo
Rodney Leonard
Robert Osmetti***^
Bruno Ruggiero^
Lawrence Marshall****
Steven Chadwick
Karl Cicanese^
* Not a member of the Committee
** By invitation
***Resigned from the Board on 30 June 2022
****Resigned from the Board on 1 April 2022
^ Away on company business
12
FY2022 FINANCIAL REPORT | 30 JUNE 2022
FY2022 FINANCIAL REPORT | 30 JUNE 2022
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Remuneration Report – Audited
Remuneration Report – Audited
The Directors present the Lycopodium Limited 2022 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
Michael Caratti
Peter De Leo
Position
Chairman, Non-executive Director
Managing Director
Rodney Leonard
Non-executive Director
Robert Osmetti
Bruno Ruggiero
Karl Cicanese
Non-executive Director (resigned 30 June 2022)
Executive Director
Executive Director
Lawrence Marshall
Non-executive Director (resigned 1 April 2022)
Steven Chadwick
Justine Campbell
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, subsidiary board and committee attendance,
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 17.
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
FY2022 FINANCIAL REPORT | 30 JUNE 2022
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 2021 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:
2022
2021
2020
2019
2018 (^)
Revenue ($)
232,156,833
162,175,648
211,134,310
154,033,409
194,531,157
Profit before income tax ($)
38,926,648
21,489,381
18,450,139
23,543,752
25,755,489
Income tax expense ($)
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 (%)
12,074,774
7,423,134
6,773,513
7,144,537
7,096,593
26,851,874
14,066,247
11,676,626
16,399,215
18,658,896
68.4
91.6%
54.0
0.30
35.7
20.2%
25.0
0.64
29.7
(28.4%)
20.0
(0.08)
41.5
(10.9%)
30.0
0.19
46.6
79.9%
30.0
1.50
28.67%
17.00%
14.85%
20.66%
25.12%
*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.
FY2022 FINANCIAL REPORT | 30 JUNE 2022
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Remuneration Report – Audited
Remuneration Report – Audited
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-
employment
benefits
Share-
based
payments
Cash
salary and
fees
74,091
65,966
81,500
118,901
172,630
2022
Non-executive Directors
Michael Caratti
Lawrence Marshall*
Steven Chadwick
Rodney Leonard***
Robert Osmetti**
Executive Directors
Peter De Leo
Bruno Ruggiero
Karl Cicanese
Other key management personnel
Justine Campbell
Total key
management
personnel
compensation
613,300
501,401
562,932
476,432
2,667,153
Cash
bonus
Non-
monetary
benefits
Super-
annuation
Rights
Total
-
-
-
-
-
41,948
33,803
37,875
37,500
151,126
9,290
6,967
-
-
-
9,290
9,290
9,290
7,382
20,625
-
11,811
38,878
27,500
30,800
23,568
-
-
-
31,006
-
78,447
59,838
137,305
90,763
93,558
81,500
161,718
211,508
770,485
635,132
770,970
9,290
53,417
23,568
184,132
88,199
394,795
634,989
3,450,623
Perfor-
mance
related
0.0
0.0
0.0
19.2
0.0
15.6
14.7
22.7
19.8
15.8
* Resigned 1 April 2022
** Resigned 30 June 2022
*** Payment includes prior year entitlement
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-
employment
benefits
Share-
based
payments
Cash
salary and
fees
71,233
117,480
78,000
118,030
158,209
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
588,600
480,550
20,580
499,992
458,306
2,590,980
Cash
bonus
Non-
monetary
benefits
Super-
annuation
Rights
Total
-
-
-
-
-
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
Perfor-
mance
related
-
-
-
18.3
-
9.8
9.3
14.6
19.3
2.7
9.5
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
Term of agreement
Fixed Remuneration including superannuation*
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
No fixed term
Directors fee of $81,500 p.a.
No fixed term
No fixed term
No fixed term
Fixed hourly rate of $234.72
Directors fee of $81,500 p.a.
Fixed hourly rate of $234.72
Directors fee of $81,500 p.a.
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
No fixed term
No fixed term
$559,300 p.a.
Directors fee of $81,500 p.a.
$450,700 p.a.
Directors fee of $81,500 p.a.
$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
** Resigned 30 June 2022
*** Resigned 1 April 2022
SHARE-BASED COMPENSATION
Incentive Performance Rights Plan
Performance rights were granted to certain Executive Directors as approved at the Annual General Meeting on
18 November 2021.
Loan Funded Share Acquisition Plan
On 18 January 2022, the company issued limited recourse loan funded shares to two executives totalling to
150,000 shares.
Both the above Plans were designed to give incentive to the executives to provide dedicated and ongoing
commitment and effort to the company and aligning the interest of both employee and shareholders.
Further information on the above is set out in Note 37 to the financial statements.
* Represents remuneration from 1 July 2020 - 28 July 2020
** Appointed 23 November 2020
*** Share based payments relates to performance rights awarded in prior years.
16
FY2022 FINANCIAL REPORT | 30 JUNE 2022
FY2022 FINANCIAL REPORT | 30 JUNE 2022
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Remuneration Report – Audited
Remuneration Report – Audited
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.
LOANS TO KEY MANAGEMENT PERSONNEL
No loans were made to Directors of Lycopodium Limited and other key management personnel of the
Company, including their personally related parties during the year (2021: Nil).
Loans that are in-substance options and are non-recourse to the Group are excluded from loans to key
management personnel.
End of Remuneration Report.
Balance at
start of the
year
2022
Directors of Lycopodium Limited
Peter De Leo
Rodney Leonard
Bruno Ruggiero
Karl Cicanese
Other key management personnel
Justine Campbell
43,849
23,715
33,188
84,781
-
Granted as
compen-
sation (*)
Exercised
Other
changes
Balance at
end of the
year
Vested and
exercisable Unvested
19,700
-
15,875
17,787
17,611
-
-
-
-
-
-
-
-
-
-
63,549
23,715
49,063
102,568
17,611
-
-
-
-
-
63,549
23,715
49,063
102,568
17,611
*Granted under the Incentive Performance Rights Plan. Refer to Note 37.
Balance at
start of the
year
2021
Directors of Lycopodium Limited
Peter De Leo
Rodney Leonard
Bruno Ruggiero
Peter Dawson**
Karl Cicanese***
26,265
23,715
21,165
21,165
69,679
Granted as
compen-
sation (*)
Exercised
Other
changes
Balance at
end of the
year
Vested and
exercisable Unvested
17,584
-
12,023
-
15,102
-
-
-
-
-
-
-
-
(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 37.
** Performance rights held from 1July to 28 July 2020
*** Appointed 23 November 2020
(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.
Balance at the
start of the year
2022
Directors of Lycopodium Limited
Ordinary shares
Michael Caratti
Peter De Leo
Rodney Leonard
Robert Osmetti*
Bruno Ruggiero
Lawrence Marshall**
Steven Chadwick
Karl Cicanese
9,109,367
971,711
1,054,215
308,148
3,167,332
992,332
10,000
200
Received during the
year on the exercise
of options
Other changes
during the year
Balance at end
of the year
-
-
-
-
-
-
-
-
-
(75,000)
(75,000)
-
25,000
-
9,657
-
9,109,367
896,711
979,215
308,148
3,192,332
992,332
19,657
200
* Resigned 30 June 2022
** Resigned 1 April 2022
18
FY2022 FINANCIAL REPORT | 30 JUNE 2022
FY2022 FINANCIAL REPORT | 30 JUNE 2022
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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
Peter De Leo
Managing Director
Lycopodium Limited
Perth
23 August 2022
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
19 November 2021
Expiry date
30 June 2024
26 November 2024
10 December 2025
18 November 2026
Issue price of shares
Number
$0.00
$0.00
$0.00
$0.00
50,000
151,209
86,639
127,139
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 29 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 29 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
20
FY2022 FINANCIAL REPORT | 30 JUNE 2022
FY2022 FINANCIAL REPORT | 30 JUNE 2022
21
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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 2022, 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: 23 August 2022
JAMES KOMNINOS
Partner
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
Wahgnion Gold Project, Burkina Faso
22
FY2022 FINANCIAL REPORT | 30 JUNE 2022
FY2022 FINANCIAL REPORT | 30 JUNE 2022
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The Board of Directors of Lycopodium Limited is responsible for the overall corporate
governance of the Company and its subsidiary companies (Consolidated entity). The Board
governs all matters relating to the strategic direction, policies, practices, management and
operations of the Consolidated entity 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
Navachab Gold Project, Namibia
24
FY2022 FINANCIAL REPORT | 30 JUNE 2022
FY2022 FINANCIAL REPORT | 30 JUNE 2022
25
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Consolidated Statement of Profit or Loss & Other Comprehensive Income
Consolidated Statement of Financial Position
Consolidated Statement of Changes in Equity
Consolidated Statement of Cash Flows
Notes to the Financial Statements
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.
9.
Current Assets -
Cash and Cash Equivalents
Current Assets -
Trade and Other Receivables
10. Current Assets - Inventories
11. Current Assets -
Other Current Assets
12. Non-Current Assets -
Property, Plant and Equipment
13. Non-Current Assets -
Right-of-Use Assets
14. Non-Current Assets -
Intangible Assets
15. Non-Current Assets -
Deferred Tax Assets
16. Financial Assets and
Financial Liabilities
17. Non-Current Assets -
Investments Accounted for
Using the Equity Method
18. Non-Current Assets -
Other Receivables
19. Current Liabilities -
Trade and Other Payables
20. Current Liabilities –
Employee benefits
21. Current Liabilities –
Provisions
22. Non-Current Liabilities -
Deferred Tax Liabilities
23. Non-Current Liabilities –
Employee Benefits
24. Contributed Equity
25. Reserves
26. Retained Earnings
27. Non-Controlling Interests
28. Dividends
29. Remuneration of Auditors
30. Contingencies
31. Commitments
32. Related Party Transactions
33. Subsidiaries
34. Events Occurring After the
Reporting Period
35. Reconciliation of Profit After
Income Tax to Net Cash Inflow
from Operating Activities
36. Earnings Per Share
37. Share-Based Payments
38. Parent Entity Financial Information
31
45
48
49
53
54
54
55
56
57
57
57
58
58
60
62
64
66
27
28
29
30
66
66
67
67
68
68
69
69
69
70
71
71
71
72
73
73
74
75
76
78
For the year ended 30 June 2022
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 reversal/(expenses)
Finance costs
Share of net (loss)/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
Earnings per share for profit attributable to the ordinary
equity holders of the Company:
Basic earnings per share
Diluted earnings per share
Notes
2022
$
2021
$
5(a)
228,711,210
158,062,505
563,484
551,307
5(c)
2,882,139
3,561,836
232,156,833
162,175,648
(85,216,446)
(61,759,749)
6
(5,621,299)
(4,784,787)
(3,709,202)
(3,560,682)
(45,365,867)
(19,157,291)
(46,421,321)
(25,806,496)
(1,760,674)
(1,907,537)
(13,353,492)
(13,013,638)
9,305,489
(11,022,306)
(886,201)
(201,172)
(816,789)
1,143,008
21
6
17
38,926,648
21,489,381
7
(12,074,774)
(7,423,134)
26,851,874
14,066,247
27,177,701
14,199,449
(325,827)
(133,202)
26,851,874
14,066,247
(817,656)
1,209,198
26,034,218
15,275,445
26,030,215
15,408,647
4,003
(133,202)
26,034,218
15,275,445
Notes
Cents
Cents
36(a)
36(b)
68.4
68.4
35.7
35.5
26
FY2022 FINANCIAL REPORT | 30 JUNE 2022
FY2022 FINANCIAL REPORT | 30 JUNE 2022
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As at 30 June 2022
ASSETS
Current assets
Cash and cash equivalents
Trade and other receivables
Inventories
Current tax receivables
Other current assets
Total current assets
Non-current assets
Property, plant and equipment
Right-of-use assets
Intangible assets
Deferred tax assets
Investments in listed equities
Investments accounted for using the equity method
Other receivables
Total non-current assets
Total assets
LIABILITIES
Current liabilities
Trade and other payables
Contract and other liabilities
Borrowings
Lease liabilities
Current tax liabilities
Derivative liabilities
Employee benefits
Provisions
Total current liabilities
Non-current liabilities
Borrowings
Employee benefits
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
2022
$
2021
$
8
9
10
100,946,619
76,841,139
67,111,605
43,887,117
347,627
-
5,518,861
1,540,415
1,971,240
2,482,762
11
173,924,712
126,722,673
12
13
14
15
6,897,962
4,671,757
13,687,667
14,925,280
6,524,274
12,621,890
16(a)
2,471,669
6,743,650
6,189,450
739,920
d
e
t
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m
u
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a
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18
2,768,361
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28
FY2022 FINANCIAL REPORT | 30 JUNE 2022
FY2022 FINANCIAL REPORT | 30 JUNE 2022
29
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For the year ended 30 June 2022
As of 30 June 2022
Cash flows from operating activities
Receipts from customers (inclusive of GST)
Payments to suppliers and employees (inclusive of GST)
Interest received
Interest and other finacnce cost paid
Income taxes paid
Net cash inflow/(outflow) 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
Loan to associates and joint ventures
Repayment of loans from associates and joint ventures
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 from employees
Repayments of hire purchase liabilities
Purchase of shares under employee share plans
Reduction of lease liabilities
Dividends paid to Company's shareholders
Net cash outflow from financing activities
Net increase/(decrease) 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
Notes
2022
$
2021
$
236,975,004
116,872,692
(186,499,411)
(126,078,673)
50,475,593
(9,205,981)
563,484
(86,988)
520,152
(10,177,435)
(5,031,728)
35
40,774,654
(13,717,557)
12
14
900,774
803,624
(3,947,067)
(2,667,040)
1,416
(6,219)
10,358
(238,608)
(20,000,000)
(4,000,000)
24,000,000
-
607,038
288,456
1,555,942
(5,803,210)
-
-
30,802
4,197,273
(574,679)
(2,367,229)
-
-
(1,015,250)
35,679
(140,225)
-
(3,804,194)
(3,531,048)
(13,114,275)
(5,961,033)
(18,508,398)
(7,735,781)
23,822,198
(27,256,548)
76,841,139
102,888,489
283,282
1,209,198
Cash and cash equivalents at the end of financial year
8
100,946,619
76,841,139
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 and its subsidiaries 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 Consolidated entity 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.
Any new Accounting Standards are not expected to have a material impact.
(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 Consolidated entity’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
(i) Subsidiaries
Subsidiaries are all entities (including structured entities) over which the Consolidated entity has control.
The Consolidated entity controls an entity when the Consolidated entity 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 Consolidated entity.
They are deconsolidated from the date that control ceases.
The acquisition method of accounting is used to account for business combinations by the Consolidated entity (refer to
note 1(h)).
Intercompany transactions, balances and unrealised gains on transactions between entities in the Consolidated entity
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 Consolidated entity.
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.
30
FY2022 FINANCIAL REPORT | 30 JUNE 2022
FY2022 FINANCIAL REPORT | 30 JUNE 2022
31
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As of 30 June 2022
As of 30 June 2022
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
(b) Principles of Consolidation (continued)
(ii) Employee Share Trust
The Consolidated entity has formed a trust to administer the Consolidated entity’s employee share scheme. This trust is
consolidated, as the substance of the relationship is that the trust is controlled by the Consolidated entity.
(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 (vi) below), after initially being recognised at cost
in the Consolidated Statement of Financial Position.
(v) Associates
Associates are all entities over which the Consolidated entity has significant influence but not control or joint control.
This is generally the case where the Consolidated entity 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 Consolidated entity’s share of the post-acquisition profits or losses of the investee, and the Consolidated
entity’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 Consolidated entity’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 Consolidated entity 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 Consolidated entity and its associates and joint ventures are eliminated to
the extent of the Consolidated entity’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 Consolidated entity.
The Consolidated entity treats transactions with non-controlling interests that do not result in a loss of control as
transactions with equity owners of the Consolidated entity. 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.
(vii) Changes in Ownership Interests
When the Consolidated entity 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 Consolidated entity 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 Consolidated entity recognises revenue on an “over time” basis. This applies to the two services of which the
Consolidated entity provides:
•
•
Engineering and related services
Construction contracts
Identifying the contract with a customer
Identifying the performance obligations
To determine whether to recognise revenue, the Consolidated entity follows a 5-step process:
(1)
(2)
(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 Consolidated entity 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 Consolidated entity
therefore recognises revenue in the amount to which the Consolidated entity has the right to invoice.
Variable consideration within the transaction price, if any, reflects concessions provided to the customer such as
discounts, rebates and refunds, any potential bonuses receivable from the customer and any other contingent events.
Such estimates are determined using either the ‘expected value’ or ‘most likely amount’ method. The measurement of
variable consideration is subject to a constraining principle whereby revenue will only be recognised to the extent that
it is highly probable that a significant reversal in the amount of cumulative revenue recognised will not occur.
The measurement constraint continues until the uncertainty associated with the variable consideration is subsequently
resolved. Amounts received that are subject to the constraining principle are recognised as a refund liability.
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 Consolidated entity’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.
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FY2022 FINANCIAL REPORT | 30 JUNE 2022
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As of 30 June 2022
As of 30 June 2022
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
(e) Foreign Currency Translation (continued)
(f)
Income Tax (continued)
(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
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 Consolidated entity 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 Consolidated entity 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 Consolidated entity 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 Consolidated entity.
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 Consolidated entity 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.
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As of 30 June 2022
As of 30 June 2022
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
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 group 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 Statement of cash flow 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 Consolidated entity 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 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.
Inventories
(p)
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 Consolidated entity 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 Consolidated entity’s 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 Consolidated entity 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 Consolidated entity reclassifies debt
investments when its business model for managing those assets changes.
Measurement
(ii)
At initial recognition, the Consolidated entity 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.
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As of 30 June 2022
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
(q) Non-Derivative Financial Assets (continued)
Debt Instruments
Subsequent measurement of debt instruments depends on the Consolidated entity’s business model for managing the
asset and the cash flow characteristics of the asset. There are three measurement categories which the Consolidated
entity 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 Consolidated entity.
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 Consolidated entity.
Equity Instruments
The Consolidated entity subsequently measures all equity investments at fair value. Where the Consolidated entity’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
Consolidated entity’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 Consolidated entity 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 Consolidated entity 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 Consolidated entity’s countries of operation.
(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
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 Consolidated entity 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 Consolidated entity 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 Consolidated entity designates only the intrinsic
value of the option contract as the hedging instrument. Gains or losses relating to the effective portion of the change
38
FY2022 FINANCIAL REPORT | 30 JUNE 2022
FY2022 FINANCIAL REPORT | 30 JUNE 2022
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As of 30 June 2022
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
(x) Derivative Financial Instruments (continued)
(z)
Intangile Assets
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 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 Consolidated entity 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 Consolidated entity 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:
3 - 10 years
- Plant and equipment
- Vehicles
5 - 7 years
- Furniture, fittings and equipment 3 - 8 years
3 - 6 years
- Leasehold improvements
- Leased plant and equipment
3 - 5 years
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.
(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 Consolidated entity
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.
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.
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. Re-measurement as a result
of experience adjustments and changes in actuarial assumptions are recognised in profit or loss.
40
FY2022 FINANCIAL REPORT | 30 JUNE 2022
FY2022 FINANCIAL REPORT | 30 JUNE 2022
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As of 30 June 2022
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
(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.
(ac) Employee Benefits
The obligations are presented as current liabilities in the consolidated balance sheet if the entity does not have an
unconditional right to defer settlement for at least twelve months after the reporting date, regardless of when the actual
settlement is expected to occur.
(ii) 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.
(iii) 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 37.
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.
(iv) Loan Funded Share Plan
A limited recourse loans was provided to eligible employees 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 employees to purchase Lycopodium Limited.
The loan will be a limited recourse loan provided the employee stays with the Company for greater than 3 years.
During the term of the loan, dividends will be offset against the outstanding loan balance.
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 participating
employees represents the cost to the company for providing the loan to the employees. This amount is expensed in the
profit and loss upon vesting.
Loan funded shares
The loan funded shares purchased by the eligible employee are classified as reduction in equity as at the reporting date.
Defined Contribution Superannuation Expense
(v)
Contributions to defined contribution superannuation plans are expensed in the period in which they are incurred.
(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.
42
FY2022 FINANCIAL REPORT | 30 JUNE 2022
FY2022 FINANCIAL REPORT | 30 JUNE 2022
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As of 30 June 2022
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
(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.
(ai) Employee share trust
The group has in place a trust to administer the consolidated entity’s employee share and share rights schemes.
This trust is consolidated, as the substance of the relationship is that the trust is controlled by the group. Shares held
by the Lycopodium Employee Share Trust are disclosed as Treasury shares and deducted from contributed equity.
Movement in treasury shares represent acquisition of the Company’s shares on market and allocation of shares to
the Company’s employees from the vesting of awards and exercise of rights under the employee share-based
payment trust.
(aj) Parent Entity Financial Information
The financial information for the parent entity, Lycopodium Limited, disclosed in note 38 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.
(aj) Parent Entity Financial Information (continued)
(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 Consolidated entity manages its exposure to key financial risks, including interest rate and currency risk in
accordance with the Consolidated entity’s financial risk management policy. The objective of the policy is to support the
delivery of the Consolidated entity’s financial targets whilst protecting future financial security.
The main risks arising from the Consolidated entity’s financial instruments are interest rate risk, foreign currency risk,
credit risk and liquidity risk. The Consolidated entity 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 Consolidated entity operates internationally and is exposed to foreign exchange risk arising from various currency
exposures, primarily with respect to the US dollar (USD) and Canadian dollars (CAD). 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 Consolidated entity’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 2022
30 June 2021
USD
$
CAD
$
USD
$
33,482,749
12,528,908
5,749,131
3,072,668
3,725,417
-
191,108
-
-
(2,765,401)
(5,218,615)
(7,290,945)
33,790,016
11,226,817
(1,541,814)
CAD
$
2,797,024
5,790,522
180,705
(1,948,025)
6,820,226
Sensitivity
Based on the financial instruments held at 30 June 2022, had the Australian dollar weakened/strengthened by 10%
against the US dollar with all other variables held constant, the Consolidated entity’s post-tax profit and equity for the
year would have been $3,379,002 higher/$3,379,002 lower (2021: $154,181 higher/$154,181 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 2022 than 2021 due to
forward contract hedge entered by the consolidated entity.
44
FY2022 FINANCIAL REPORT | 30 JUNE 2022
FY2022 FINANCIAL REPORT | 30 JUNE 2022
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As of 30 June 2022
2. FINANCIAL RISK MANAGEMENT (continued)
2. FINANCIAL RISK MANAGEMENT (continued)
(a) Market Risk (continued)
(b) Credit Risk (continued)
Based on the financial instruments held at 30 June 2022, had the Australian dollar weakened/strengthened by 10%
against the Canadian Dollar with all other variables held constant, the Consolidated entity’s post-tax profit and equity for
the year would have been $1,122,682 higher/$1,122,682 lower (2021: $682,023 higher/$682,023 lower), mainly as a
result of foreign exchange gains/losses on translation of Canadian dolalrs denominated financial instruments as detailed
in the above table.
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 Consolidated entity’s exposure to
currency risk.
(ii) Price Risk
The Consolidated entity 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 Consolidated entity
does not have a risk management policy surrounding price risk in place as the Board considers the risk minimal.
Interest Rate Risk
(iii)
The Consolidated entity is exposed to interest rate risk arising mainly from borrowings and cash balances held.
The risk is considered minimal as the Consolidated entity’s borrowings are minimal. The Consolidated entity 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.
Sensitivity
At 30 June 2022, 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 $326,965 lower/higher (2021: $268,566 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 Consolidated entity, which comprise cash and cash equivalents, trade
and other receivables and other current assets. The Consolidated entity’s exposure to credit risk arises from potential
default of the counterparty, with a maximum exposure equal to the carrying amount of these instruments.
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 11)
2022
$
100,946,619
67,111,605
1,889,649
169,947,873
2021
$
76,841,138
43,887,117
532,468
121,260,723
Cash and Cash Equivalents
The credit risk on cash and cash equivalents is limited because the Consolidated entity’s primary bank is rated AA-
by an international credit-rating agency.
Trade and Other Receivables
The Consolidated entity’s exposure to credit risk is influenced mainly by the individual characteristics of each
customer. However, management also considers the demographics of the Consolidated entity’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 Consolidated entity trades only with recognised, creditworthy third parties, and as such collateral is not requested
nor is it the Consolidated entity’s policy to securitise its trade and other receivables. All receivables at balance date that
are neither past due nor impaired comply with the Consolidated entity’s policy on credit quality.
It is the Consolidated entity’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 Consolidated entity’s
exposure to bad debts is minimised.
There are no significant concentrations of credit risk within the Consolidated entity. The Consolidated entity 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.
(b) 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 consolidated entity manages liquidity risk by
continuously monitoring forecast and actual cash flows and matching the maturity profiles of financial assets
and liabilities.
Financing Arrangements
The Consolidated entity had access to the following undrawn borrowing facilities at the reporting date:
Leasing facility
Standby credit facility
Insurance bonds
2022
$
6,385,136
9,748,669
28,277,568
44,411,373
2021
$
3,000,000
10,401,171
36,084,211
49,485,382
46
FY2022 FINANCIAL REPORT | 30 JUNE 2022
FY2022 FINANCIAL REPORT | 30 JUNE 2022
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As of 30 June 2022
As of 30 June 2022
2. FINANCIAL RISK MANAGEMENT (continued)
3. CRITICAL ACCOUNTING ESTIMATES AND ASSUMPTIONS (continued)
Finance leases
Lease Liabilities
Borrowings
Total
Consolidated -
At 30 June 2021
Non-derivatives
Finance leases
Lease Liabilities
Borrowings
Total
(b) Liquidity Risk (continued)
Maturities of financial liabilities
The following tables detail the Consolidated entity’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 Consolidated entity can be required to pay. The table includes both interest and principal
cash flows.
1 year
or less
$
Between 1
and 2 years
$
Between 2
and 5 years
$
Over
5 years
$
Total
contractual
cash flows
$
Carrying
amount
liabilities
$
Consolidated -
At 30 June 2022
Non-derivatives
Trade payables
21,259,240
-
-
39,518
25,736
36,146
-
-
21,259,240
21,259,240
101,400
97,316
4,092,226
3,455,115
7,179,753
2,295,125
17,022,219
15,120,444
692,568
692,568
-
-
1,385,136
1,349,846
26,083,552
4,173,419
7,215,899
2,295,125
39,767,995
37,826,846
1 year
or less
$
Between 1
and 2 years
$
Between 2
and 5 years
$
Over
5 years
$
Total
contractual
cash flows
$
Carrying
amount
liabilities
$
Trade payables
12,083,924
-
-
71,873
39,517
61,883
-
-
12,083,924
12,083,924
173,273
165,023
3,391,422
3,234,606
7,061,438
4,505,412
18,192,878
15,738,888
692,568
692,568
692,567
-
2,077,703
2,000,000
16,239,787
3,966,691
7,815,888
4,505,412
32,527,778
29,987,835
In assessing and managing liquidity risks of its derivative financial instruments the Consolidated entity considers both
contractual inflows and outflows. The contractual cash flows of the Consolidated entity’s derivative financial assets and
liabilities are all current (within 12 months).
New Accounting Standards and Interpretations not yet mandatory or early adopted.
Australian Accounting Standards and Interpretations that have recently been issued or amended but are not yet
mandatory, have not been early adopted by the consolidated entity for the annual reporting period ended 30 June
2022. The consolidated entity has not yet assessed the impact of these new or amended Accounting Standards
and Interpretations.
3. CRITICAL ACCOUNTING ESTIMATES AND ASSUMPTIONS
The Consolidated entity 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 Consolidated entity 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 14 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 Consolidated entity 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 21 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 Consolidated entity 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
affect the stage of completion and the contract revenue respectively. In making these estimates, the Consolidated entity
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 (2021: 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.
48
FY2022 FINANCIAL REPORT | 30 JUNE 2022
FY2022 FINANCIAL REPORT | 30 JUNE 2022
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50
FY2022 FINANCIAL REPORT | 30 JUNE 2022
FY2022 FINANCIAL REPORT | 30 JUNE 2022
51
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As of 30 June 2022
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 $63,718,954
(2021: $46,399,257), and the total of revenue from external customers from other countries is $164,372,290
(2021: $111,663,247). 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
2022
$
2021
$
229,630,192
2,526,641
232,156,833
161,534,130
641,518
162,175,648
Revenues of approximately $67,250,491 (2021: $50,394,067) 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 items:
Depreciation and amortisation
Others
Profit before income tax as per statement of
comprehensive income
2022
$
2021
$
45,783,638
26,498,578
(2,914,328)
(3,942,662)
38,926,648
(1,709,645)
(3,299,552)
21,489,381
(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
2022
$
2021
$
179,340,618
(11,298,480)
6,126,228
121,899,975
(5,670,938)
6,126,228
16,931,895
6,628,598
10,656,223
10,553,912
218,938,994
15,109,761
6,541,616
11,482,192
8,563,616
164,052,450
As of 30 June 2022
4. SEGMENT INFORMATION (continued)
(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
2022
$
2021
$
120,014,264
(11,304,983)
72,153,522
(5,670,938)
1,677,014
(5,219,734)
11,751,152
2,345,861
119,263,574
1,934,706
(2,600,645)
12,046,619
(1,484,633)
76,378,631
5. REVENUE
(a) Disaggregation of Revenue from Contracts with Customers
2022
2021
Engineering
& related
services
$
Construction
contracts
$
Total
$
Engineering
& related
services
$
Construction
contracts
$
Total
$
Minerals
138,822,883
54,801,842
193,624,725
87,906,029
47,473,649
135,379,678
Project Services -
Africa
7,269,200
Process Industries
10,930,869
Other
16,886,416
-
-
-
7,269,200
589,087
10,930,869
6,760,213
16,886,416
15,333,527
-
-
-
589,087
6,760,213
15,333,527
Total revenue
173,909,368
54,801,842
228,711,210
110,588,856
47,473,649
158,062,505
(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
2022
$
-
-
29,337,296
14,131,622
43,468,918
2021
$
-
-
8,933,937
8,121,426
17,055,363
(i) Significant Changes in Contract Assets and Liabilities
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 FY 2023.
52
FY2022 FINANCIAL REPORT | 30 JUNE 2022
FY2022 FINANCIAL REPORT | 30 JUNE 2022
53
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As of 30 June 2022
5. REVENUE (continued)
(c) Other Income
Profit on sale of shares
Net Fair value gain on financial instruments
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
Net foreign exchange losses
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
Adjustments for deferred tax of prior periods
Deferred income tax expense/(benefit) included in income tax expense comprises:
Increase in deferred tax assets (note 15)
Increase/(decrease) in deferred tax liabilities (note 22)
2022
$
435,957
1,366,747
548,715
-
530,720
2,882,139
2021
$
213,458
-
568,786
1,762,566
1,017,026
3,561,836
2022
$
2021
$
1,070,109
604,217
19,868
22,053
3,721,586
183,466
5,621,299
869,313
223,302
8,920
40,150
3,344,937
298,165
4,784,787
(773,317)
465,165
86,988
799,213
886,201
45,902
770,887
816,789
707,919
4,250,413
438,517
2,944,476
2022
$
18,158,343
(6,432,440)
114,137
234,734
12,074,774
(6,006,859)
(425,581)
(6,432,440)
2021
$
9,810,950
(2,427,789)
39,973
7,423,134
(7,021,931)
4,594,142
(2,427,789)
As of 30 June 2022
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% (2021: 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
Total income tax expense
2022
$
2021
$
38,926,648
11,677,994
21,489,381
6,446,814
212,376
(155,968)
671,599
12,406,000
228,664
(318,495)
(127,420)
(113,975)
-
12,074,774
131,555
40,618
521,854
7,140,841
(136,631)
(193,118)
(184,076)
(104,550)
900,668
7,423,134
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.
8. CURRENT ASSETS - CASH AND CASH EQUIVALENTS
Cash at bank and in hand
2022
$
2021
$
100,946,619
76,841,139
(a) Risk Exposure
The Consolidated entity’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.
54
FY2022 FINANCIAL REPORT | 30 JUNE 2022
FY2022 FINANCIAL REPORT | 30 JUNE 2022
55
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As of 30 June 2022
As of 30 June 2022
9. CURRENT ASSETS - TRADE AND OTHER RECEIVABLES
10. CURRENT ASSETS - INVENTORIES
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.
2022
$
50,695,024
(1,029,030)
49,665,994
17,322,655
102,956
20,000
17,445,611
67,111,605
2021
$
34,250,867
(1,185,825)
33,065,042
6,789,217
12,858
4,020,000
10,822,075
43,887,117
2022
$
1,185,825
-
(185,922)
29,127
1,029,030
2021
$
1,228,158
-
(104,045)
61,712
1,185,825
The expected credit loss for trade receivables as at 30 June 2022 and 30 June 2021 are as follows:
30 June 2022
Current
More than 30
days past due
More than 60
days past due
More than 90
days past due
Expected credit loss rate
0%
0%
0%
Gross carrying amount
29,302,087
12,968,225
5,405,791
Lifetime expected credit loss
-
-
-
34.1%
3,018,921
1,029,030
30 June 2021
Current
More than 30
days past due
More than 60
days past due
More than 90
days past due
Expected credit loss rate
0%
0%
0%
Gross carrying amount
19,313,488
7,554,980
4,692,350
Lifetime expected credit loss
-
-
-
44.1%
2,690,049
1,185,825
Total
-
50,695,024
1,029,030
Total
-
34,250,867
1,185,825
(b) Risk Exposure
Information about the Consolidated entity’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 Consolidated entity does not hold any collateral as security. Refer to note 2 for more information on the risk
management policy of the Consolidated entity.
Consumables
2022
$
347,627
347,627
2021
$
1,540,415
1,540,415
11. CURRENT ASSETS - OTHER CURRENT ASSETS
Other current assets (a)
Prepayments
2022
$
1,889,649
3,629,212
5,518,861
2021
$
532,468
1,950,294
2,482,762
(a) Other Current Assets
Other current assets consist of deposits of $591,844 (2021:$532,468) held with licensed banks as security/bond on the
various properties leased by the Consolidated entity.
12. NON-CURRENT ASSETS - PROPERTY, PLANT AND EQUIPMENT
Year ended 30 June 2021
Opening net book amount
Additions
Disposals
Depreciation charge
Transfers
Exchange differences
Closing net book amount
At 30 June 2021
Cost or fair value
Accumulated depreciation
Net book amount
Year ended 30 June 2022
Opening net book amount
Additions
Disposals
Depreciation charge
Transfers
Exchange differences
Closing net book amount
At 30 June 2022
Cost
Accumulated depreciation
Net book amount
Fixtures
and fittings
$
Motor
vehicles
$
Leasehold
improvements
$
1,974,996
2,537,663
(17,568)
(869,313)
47,439
5,653
3,678,870
12,570,686
(8,891,816)
3,678,870
16,188
129,377
(1,337)
(8,920)
-
1,865
137,173
271,138
(133,965)
137,173
1,011,565
-
-
(223,302)
-
(35,367)
752,896
1,613,854
(860,958)
752,896
Fixtures
and fittings
$
Motor
vehicles
$
Leasehold
improvements
$
3,678,870
1,732,100
(2,122)
(1,070,109)
(85,447)
(47,748)
4,205,544
14,220,357
(10,014,813)
4,205,544
137,173
130,709
(2,492)
(19,868)
(7,907)
(12,790)
224,825
752,896
2,227,857
-
(604,217)
-
10,292
2,386,828
374,187
(149,362)
224,825
3,855,145
(1,468,317)
2,386,828
Leased
plant and
equipment
$
190,407
-
-
(40,150)
(47,439)
-
102,818
137,738
(34,920)
102,818
Leased
plant and
equipment
$
102,818
-
-
(22,053)
-
-
80,765
137,738
(56,973)
80,765
Total
$
3,193,156
2,667,040
(18,905)
(1,141,685)
-
(27,849)
4,671,757
14,593,416
(9,921,659)
4,671,757
Total
$
4,671,757
4,090,666
(4,614)
(1,716,247)
(93,354)
(50,246)
6,897,962
18,587,427
(11,689,465)
6,897,962
56
FY2022 FINANCIAL REPORT | 30 JUNE 2022
FY2022 FINANCIAL REPORT | 30 JUNE 2022
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As of 30 June 2022
As of 30 June 2022
13. NON-CURRENT ASSETS - RIGHT-OF-USE ASSETS
14. NON-CURRENT ASSETS - INTANGIBLE ASSETS (continued)
Land and buildings – right-of-use
Accumulated depreciation
Net book amount
Additions to the right-of-use assets during the year were $2,518,289
Movements:
Right-of-Use Assets
Opening balance 1 July
Additions
Depreciation
Currency translation differences during the year
Balance 30 June
2022
$
2021
$
20,656,734
(6.969.067)
13,687,667
18,639,560
(3,714,280)
14,925,280
2022
$
2021
$
14,925,280
2,518,829
(3,721,586)
(34,856)
13,687,667
3,000,988
15,448,289
(3,344,937)
(179,060)
14,925,280
The Consolidated entity leases office space under agreements of between three 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 Consolidated entity 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.
14. NON-CURRENT ASSETS - INTANGIBLE ASSETS
Year ended 30 June 2021
Opening net book amount
Additions
Impairment
Amortisation charge*
Exchange differences
Closing net book amount
Goodwill
$
Software
$
Customer
contracts
$
6,207,274
-
-
-
-
6,207,274
631,456
238,608
(60,215)
(298,165)
24,692
536,376
-
-
-
-
-
-
Total
$
6,838,730
238,608
(60,215)
(298,165)
24,692
6,743,650
At 30 June 2021
Cost
Accumulated amortisation and impairment
Net book amount
8,885,406
(2,678,132)
6,207,274
3,142,631
(2,606,255)
536,376
315,000
(315,000)
-
12,343,037
(5,599,387)
6,743,650
Year ended 30 June 2022
Opening net book amount
Additions
Disposals
Amortisation charge*
Exchange differences
Closing net book amount
At 30 June 2022
Cost
Accumulated amortisation
Net book amount
Goodwill
$
Software
$
Customer
contracts
$
6,207,274
-
-
-
-
6,207,274
536,376
6,219
-
(183,466)
(42,129)
317,000
-
-
-
-
-
-
Total
$
6,743,650
6,219
-
(183,466)
(42,129)
6,524,274
8,885,406
(2,678,132)**
6,207,274
2,954,605
(2,637,605)
317,000
315,000
(315,000)
-
12,155,011
(5,630,737)
6,524,274
* Consolidated entity amortisation of $183,466 (2021: $298,165) is included in depreciation and amortisation expense in the
Statement of Profit or Loss and Other Comprehensive Income.
** The accumulated amortisation on goodwill relates to impairment accounted for in prior years.
Impairment Tests for Goodwill
(a)
Goodwill is allocated to the Consolidated entity cash-generating units (CGUs) identified according to business segment
and country of operation.
A segment-level summary of the goodwill allocation is presented below.
2022
Minerals
Metallurgical
2021
Minerals
Metallurgical
Australia
$
3,622,991
119,257
3,742,248
Australia
$
3,622,991
119,257
3,742,248
Other
countries
$
2,465,026
-
2,465,026
Other
countries
$
2,465,026
-
2,465,026
Total
$
6,088,017
119,257
6,207,274
Total
$
6,088,017
119,257
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% (2021: 1.4%).
58
FY2022 FINANCIAL REPORT | 30 JUNE 2022
FY2022 FINANCIAL REPORT | 30 JUNE 2022
59
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As of 30 June 2022
14. NON-CURRENT ASSETS - INTANGIBLE ASSETS (continued)
Discount Rate
For the Australian CGUs, the pre-tax discount rate applied to cash flow projections is 6.10% (2021: 6.88%) and for the
Minerals CGUs in other countries, the pre-tax discount rate is 13.60% (2021: 14.26%).
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.
(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.
15. 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 22)
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
2022
$
2021
$
57,383
2,574,453
130,522
96,219
8,727,417
1,531,110
48,427
4,005
4,205,718
429,501
17,804,755
(5,182,865)
12,621,890
16,066,084
1,738,671
17,804,755
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
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60
FY2022 FINANCIAL REPORT | 30 JUNE 2022
FY2022 FINANCIAL REPORT | 30 JUNE 2022
61
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As of 30 June 2022
As of 30 June 2022
16. FINANCIAL ASSETS AND FINANCIAL LIABILITIES
16. 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:
Financial Assets
2022
Cash and cash equivalents
Trade and other receivables
Deposits held with banks
Investment in listed equities
Other Receivables
Financial Assets
2021
Cash and cash equivalents
Trade and other receivables
Deposits held with banks
Investment in listed equities
Other Receivables
Financial Liabilities
2022
Trade and other payables
Borrowings
Lease liabilities
Financial Liabilities
2021
Trade and other payables
Borrowings
Lease liabilities
Note
8
9
11
16(c)
18
Note
8
9
11
16(c)
18
Note
16(b)
Note
16(b)
Fair value
through
profit or loss
$
-
-
-
2,471,669
-
2,471,669
Fair value
through
profit or loss
$
-
-
-
739,920
-
739,920
Fair value
through
profit or loss
$
-
-
-
-
Fair value
through
profit or loss
$
-
-
-
-
Amortised
cost
$
100,946,619
67,111,605
591,844
-
42,459
168,692,527
Amortised
cost
$
76,841,139
43,887,117
532,468
-
189,413
121,450,137
Amortised
cost
$
21,259,240
1,524,787
15,120,445
37,904,472
Amortised
cost
$
12,083,924
2,165,023
15,738,888
29,987,835
Total
$
100,946,619
67,111,605
591,844
2,471,669
42,459
171,164,196
Total
$
76,841,139
43,887,117
532,468
739,920
189,413
122,190,057
Total
$
21,259,240
1,524,787
15,120,445
37,904,472
Total
$
12,083,924
2,165,023
15,738,888
29,987,835
A description of the Consolidated entity’s financial instrument risks, including risk management objectives and policies is
given in Note 2.
2022
Non-
current
$
Total
$
Current
$
2021
Non-
current
$
Total
$
683,317
683,317
1,524,787
1,524,787
760,274
760,274
1,404,749
1,404,749
2,165,023
2,165,023
-
-
683,317
-
-
1,524,787
-
-
760,274
-
-
1,404,749
-
-
2,165,023
Current
$
841,470
841,470
-
-
841,470
Secured
Finance leases
Total secured borrowings
Unsecured
Other loans
Total unsecured borrowings
Total borrowings
All borrowings are denominated in AUD.
Bank borrowings are secured by plant and equipment owned by the Consolidated entity. Current interest rates are
variable and average 2.55% (2021: 2.55%). The carrying amount of bank borrowings is considered to be a reasonable
approximation of fair value.
(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 2022 and 30 June 2021.
2022
Financial assets / (liabilities)
Listed Securities
Derivative liabilities – foreign exchange forward contracts
Net fair value
2021
Financial assets / (liabilities)
Listed Securities
Net fair value
Goodwill
$
Software
$
Customer
contracts
$
Total
$
2,471,669
-
2,471,669
-
(536,081)
(536,081)
-
-
-
2,471,669
(536,081)
1,935,588
Goodwill
$
Software
$
Customer
contracts
$
Total
$
739,920
739,920
-
-
-
-
739,920
739,920
There were no transfers between Level 1 and Level 2 in 2022 and 2021.
62
FY2022 FINANCIAL REPORT | 30 JUNE 2022
FY2022 FINANCIAL REPORT | 30 JUNE 2022
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As of 30 June 2022
As of 30 June 2022
16. FINANCIAL ASSETS AND FINANCIAL LIABILITIES (continued)
17. NON-CURRENT ASSETS - INVESTMENTS ACCOUNTED FOR
Movements
Listed Securities
Balance 1 July
Additions
Revaluation
Disposals
Balance 30 June
2022
$
739,920
-
1,902,830
(171,081)
2,471,669
2021
$
886,377
-
(29,790)
(116,667)
739,920
USING THE EQUITY METHOD (continued)
The Consolidated entity’s share of the results of its principal joint ventures:
(Loss)/profit from continuing operations
Other comprehensive income
Total comprehensive income
2022
$
(1,273,632)
-
(1,273,632)
2021
$
181,826
-
181,826
Carrying amount of the Consolidated entity's interest in joint ventures
819,990
2,093,622
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t
Measurement of Fair Value of Financial Instruments
The valuation techniques used for instruments categorised in Level 2 are described below:
Foreign Currency Forward Contracts (Level 2)
The Consolidated entity’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.
17. NON-CURRENT ASSETS - INVESTMENTS ACCOUNTED FOR
USING THE EQUITY METHOD
Investment in joint ventures
Investment in associates
(a) Investment in Joint Ventures
The Consolidated entity has the following joint ventures:
Country of
incorporation
& principal
place of
business
Name of Joint Venture
Mondium Pty Ltd (‘Mondium’)
Orway IQ Pty Ltd (‘OIQ’)
Incorporated in May 2019
2022
$
819,990
1,948,371
2,768,361
2021
$
2,093,622
1,776,685
3,870,307
Proportion of ownership
interest held by the
Consolidated entity
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
Consolidated entity's share of joint ventures net assets
(b)
Investment in Associates
Country of
incorporation
& principal
place of
business
Principal activities
Australia
South Africa
Electrical engineering services
Engineering and consulting services
Name of Joint Venture
ECG Engineering Pty Ltd
Kholo Marine & Minerals (Pty)
Ltd Incorporated July 2019
2022
$
24,843,579
25,528,103
4,856,975
30,385,078
(25,340,707)
(2,998,955)
(28,339,662)
2,045,416
819,990
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
Proportion of ownership
interest held by the
Consolidated entity
2022
31%
49%
2021
31%
49%
2022
$
1,072,460
-
1,072,460
2021
$
961,183
-
961,183
Principal activities
2022
2021
The Consolidated entity’s share of the results of its principal associates:
Australia
Australia
Engineering and construction services
Remote optimisation consulting services
40%
50%
40%
50%
Profit from continuing operations
Other comprehensive income
Total comprehensive income
Carrying amount of the Consolidated entity’s interest in associates
1,948,371
1,776,685
Included in the carrying amount of the company interest in associate is dividends of $900,774 (2021: $803,624).
64
FY2022 FINANCIAL REPORT | 30 JUNE 2022
FY2022 FINANCIAL REPORT | 30 JUNE 2022
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As of 30 June 2022
18. NON-CURRENT ASSETS - OTHER RECEIVABLES
21. CURRENT LIABILITIES – PROVISIONS
Other receivables
Impaired Receivables and Receivables Past Due
(a)
None of the non-current receivables are impaired or past due but not impaired.
2022
$
42,459
42,459
2021
$
189,413
189,413
Service and equipment warranties
2022
$
2021
$
4,087,367
13,340,431
(a) Movements in Provisions
Movements in each class of provision during the financial year, other than employee benefits, are set out below:
19. CURRENT LIABILITIES - TRADE AND OTHER PAYABLES
Trade payables
Goods and services tax (GST) payable
Sundry creditors and accrued expenses
Included in the above are financial liabilities of $21,259,240 (2021: $12,083,924).
Details of the Consolidated entity’s exposure to foreign exchange risk is provided in note 2.
20. CURRENT LIABILITIES – EMPLOYEE BENEFITS
Employee benefit obligations
2022
$
3,550,925
4,811,718
17,661,436
26,024,079
2021
$
4,731,031
3,315,182
7,352,893
15,399,106
2022
$
8,869,891
8,869,891
2021
$
7,572,761
7,572,761
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 Consolidated entity does not have an unconditional right to defer
settlement. However, based on past experience, the Consolidated entity 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
2022
$
1,519,360
1,437,788
2,957,148
2021
$
1,293,083
1,338,608
2,631,691
2022
Carrying amount at beginning of year
Provisions reversed
Provisions recognised
Exchange differences
Carrying amount at end of year
Service and
equipment
warranties
$
13,340,431
(13,215,923)
3,962,859
(52,425)
4,087,367
Total
$
13,340,431
(13,215,923)
3,962,859
(52,425)
4,087,367
The Consolidated entity 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.
22. 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 15)
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
2022
$
2021
$
(15,624)
37,681
1,368,892
(1,129)
3,793,045
5,182,865
(5,182,865)
-
20,929
5,161,936
5,182,865
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
Movements
At 1 July 2019
Charged/(credited)
- profit or loss
At 30 June 2021
At 1 July 2021
Charged/(credited)
- profit or loss
At 30 June 2022
Depreciation &
amortisation
$
200,698
(158,237)
42,461
42,461
1,326,431
Accrued
income
$
182,859
16,689
Other
provisions
$
10,344
1,349,294
199,548
199,548
(215,172)
1,359,638
1,359,638
(1,321,957)
Prepaid
expenses
$
Right-of-
use assets
$
34,946
(24,406)
10,540
10,540
(11,669)
585,457
3,410,802
3,996,259
3,996,259
(203,214)
Total
$
1,014,304
4,594,142
5,608,446
5,608,446
(425,581)
1,368,892
(15,624)
37,681
(1,129)
3,793,045
5,182,865
66
FY2022 FINANCIAL REPORT | 30 JUNE 2022
FY2022 FINANCIAL REPORT | 30 JUNE 2022
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As of 30 June 2022
23. NON-CURRENT LIABILITIES – EMPLOYEE BENEFITS
Employee benefits - long service leave
24. CONTRIBUTED EQUITY
(a) Share Capital
Ordinary shares
Fully paid
Less: Treasury shares (Employee Share Trust)
Less: Loan funded shares to senior management
Balance at the end of the period
2022
$
2021
$
671,369
165,864
2022
Shares
2021
Shares
2022
$
2021
$
39,740,226
(153,921)
(150,000)
39,436,305
39,740,226
-
-
39,740,226
20,854,574
(608,586)
(901,828)
19,344,160
20,854,574
-
-
20,854,574
Refer Note 1 (ai) for accounting policy on accounting for Employee Share Trust. Refer Note 37(b) for further details on
loan funded shares.
The average issue price of ordinary shares fully paid is $0.52 (2021: $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 Consolidated entity’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 Consolidated entity 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 Consolidated entity 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 2022, the Consolidated entity’s strategy was to maintain a gearing ratio of less than 40%. The gearing ratios at
30 June 2022 and 30 June 2021 were as follows:
Total borrowings (including payables)
Less: cash and cash equivalents
Net debt
Total equity
Total capital
Gearing ratio
2022
$
79,887,673
(100,946,619)
(21,058,946)
99,675,420
78,616,474
(21%)
2021
$
42,192,253
(76,841,139)
(34,648,886)
87,673,819
53,024,933
(40%)
As of 30 June 2022
25. RESERVES
Performance rights reserve
Foreign currency translation reserve
Movements:
Share-based Payments Reserve
Balance 1 July
Performance rights plan expense
Loan funded shares
Transfer to share capital - exercise of rights
Tax effect of transfer to cash to employee share trust
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
2022
$
1,333,109
(1,670,613)
(337,504)
2022
$
623,021
487,419
220,500
(281,107)
283,276
1,333,109
(852,957)
(817,656)
(1,670,613)
2021
$
623,021
(852,957)
(229,936)
2021
$
215,306
438,517
-
(30,802)
-
623,021
(2,062,155)
1,209,198
(852,957)
(i) Share-based Payments Reserve
The performance rights reserve is used to recognise the fair value of rights issued to certain directors or employees
during the year. This also includes reserve for other share-based payments.
(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.
26. RETAINED EARNINGS
Balance 1 July
Profit for the year
Dividends paid or payable
Balance 30 June
27. NON-CONTROLLING INTERESTS
Share capital
Reserves
Non-controlling interest on acquisition
Retained earnings
2022
$
67,758,814
26,851,874
(13,114,275)
81,496,413
2021
$
59,520,398
14,199,449
(5,961,033)
67,758,814
2022
$
13,264
4,003
(288,240)
(556,676)
(827,649)
2021
$
13,264
4,003
(288,240)
(438,657)
(709,630)
68
FY2022 FINANCIAL REPORT | 30 JUNE 2022
FY2022 FINANCIAL REPORT | 30 JUNE 2022
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As of 30 June 2022
28. DIVIDENDS
(a) Ordinary Shares
Final dividends for year ended 30 June 2021 of 15.0 cents (2020: 5.0 cents)
per fully paid share paid on 8 October 2021 (2020: 8 October 2020)
Fully franked based on tax paid at 30% (2021: 30%)
Interim dividend for the year ended 30 June 2022 of 18.0 cents (2021: 10.0 cents)
per fully paid share paid on 7 April 2022 (2020: 8 April 2021)
Fully franked based on tax paid at 30% (2021: 30%)
2022
$
2021
$
5,961,034
1,987,011
7,153,241
3,974,022
Total dividends provided for or paid
13,114,275
5,961,033
(a) Dividends Not Recognised at the End of the Reporting Period
In addition to the above dividends, since year end the Directors have recommended the
payment of a final dividend of 36.0 cents per fully paid ordinary share (2021: 15.0 cents), fully
franked based on tax paid at 30%. The aggregate amount of the proposed dividend expected
to be paid on 7 October 2022 out of retained earnings at 30 June 2022, but not recognised
as a liability at year end, is
(a) Franked Dividends
Franking credits available for subsequent reporting periods based on a tax rate of 30%
(2021: 30%)
2022
$
2021
$
14,306,481
5,961,034
2022
$
2021
$
16,987,218
14,203,976
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)
(b)
(c)
franking credits that will arise from the payment of the amount of the provision for income tax
franking debits that will arise from the payment of dividends recognised as a liability at the reporting date, and
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 $6,131,349 (2021: $2,554,729).
As of 30 June 2022
29. 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 (2021: RSM Australia Partners)
Audit and Other Assurance Services
Audit and review of financial reports
Total remuneration
2022
$
2021
$
220,000
220,000
174,500
174,500
(b) Non-RSM Australia Partners (2021: Non-RSM Australia Partners)
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
2022
$
2021
$
117,373
110,440
27,583
41,103
20,219
165,175
15,386
166,929
385,175
341,429
30. CONTINGENCIES
The Consolidated entity had contingent liabilities at 30 June 2022 and 30 June 2021 in respect of:
(a) Contingent Liabilities
(i) Guarantees
Guarantees are given in respect of rental bonds for $9,097,573 (2021: $2,174,870).
These guarantees may give rise to liabilities in the event that the Consolidated entity 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 $12,624,858 are provided in respect of performance and defects warranty as at 30 June 2022
(2021: $13,915,789).
No material losses are anticipated in respect of any of the above contingent liabilities (2021: Nil).
31. COMMITMENTS
(a) Capital Commitments
There was no capital expenditure contracted for at the reporting date which has not been recognised as a liability
(2021: Nil).
70
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FY2022 FINANCIAL REPORT | 30 JUNE 2022
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32. RELATED PARTY TRANSACTIONS
(a) Parent Entity
The parent entity within the Consolidated entity is Lycopodium Limited, which is incorporated in Australia.
(b) Subsidiaries
Interests in subsidiaries are set out in note 33.
(c) Key Management Personnel
Short-term employee benefits
Post-employment benefits
Share-based payments
2022
$
2,880,986
184,132
394,795
3,459,913
2021
$
2,716,132
152,129
233,286
3,101,547
Detailed remuneration disclosures are provided in the Remuneration Report on pages 14 to 19.
(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
2022
$
2021
$
8,621,467
9,948,179
7,647,209
5,071,260
(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
Movements:
Loans to Joint Ventures
Beginning of the year
Loans advanced
Repayments made
End of the year
2022
$
2021
$
605,259
800,960
107,948
588,497
2022
$
2021
$
4,020,000
20,000,000
(24,000,000)
20,000
20,000
4,000,000
-
4,020,000
Total loan commitment to Mondium Pty Ltd 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.
As of 30 June 2022
32. RELATED PARTY TRANSACTIONS (continued)
(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.
33. 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 Cote D’Ivoire 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
Country of
incorporation /
principal activity
Equity holding
Class of
shares
2022
$
2021
$
Australia(1)
Australia(1)
Australia(1)
Ghana(2)
Burkina Faso(2)
Cote D’Ivoire (2)
Australia(1)
Canada(1)
Australia(1)
Canada(1)
South Africa(1)
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
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
100
100
100
100
100
100
-
100
100
100
100
100
100
100
100
100
100
100
100
100
100
(1) Engineering, procurement, construction management services
(2) Offshore project support services
34. 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 2022 financial year. The total amount of the dividend is $14,306,481 (2021: $5,961,034), which represents a fully
franked dividend of 36.0 (2021: 15.0) 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 Consolidated entity’s operations in future financial years, or
(b) the results of those operations in future financial years, or
(c) the Consolidated entity’s state of affairs in future financial years.
72
FY2022 FINANCIAL REPORT | 30 JUNE 2022
FY2022 FINANCIAL REPORT | 30 JUNE 2022
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As of 30 June 2022
35. RECONCILIATION OF PROFIT AFTER INCOME TAX TO NET CASH
INFLOW FROM OPERATING ACTIVITIES
As of 30 June 2022
36. EARNINGS PER SHARE
(a) Basic Earnings Per Share
Profit for the year
Depreciation and amortisation
Non-cash employee benefits expense - share-based payments
Net loss/(profit) on sale of non-current assets
Share of net loss/(profit) of associate and joint venture accounted for using the equity method
Interest relating to financing activities
Net fair value gains from financial instruments
Other non-cash items
Change in operating assets and liabilities:
(Increase)/Decrease in trade debtors and other receivables
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/(decrease) in other provisions
Net cash (outflow)/inflow from operating activities
2022
$
2021
$
26,851,874
14,066,247
5,621,300
4,784,787
710,088
(432,759)
201,172
886,201
-
407,715
-
68,762
(2,000,159)
(1,143,008)
(28,828)
737,724
(27,164,810)
(14,157,278)
1,192,787
-
-
(435,092)
(2,051,490)
11,951,976
26,413,554
112,809
32,426
(929,243)
-
(30,602,040)
(1,376,252)
2,278,599
40,744,654
(13,717,557)
Basic earnings per share attributable to the ordinary equity holders of the Consolidated entity
(b) Diluted Earnings Per Share
Diluted earnings per share attributable to the ordinary equity holders of the Consolidated entity
2022
Cents
68.4
2022
Cents
68.4
2021
Cents
35.7
2021
Cents
35.5
(c) Reconciliation of Earnings used in Calculating Earnings Per Share
2022
$
2021
$
For Basic Earnings Per Share
Profit attributable to the ordinary equity holders of the Consolidated entity used in calculating
basic earnings per share
27,177,702
14,199,449
For Diluted Earnings Per Share
Profit attributable to the ordinary equity holders of the Consolidated entity used in calculating
diluted earnings per share
27,177,702
14,199,449
(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
2022
Number
2021
Number
39,740,226
39,740,226
-
277,498
Weighted average number of ordinary and potential ordinary shares used as the denominator
in calculating diluted earnings per share
39,740,226
40,017,724
74
FY2022 FINANCIAL REPORT | 30 JUNE 2022
FY2022 FINANCIAL REPORT | 30 JUNE 2022
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37. 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 18 November 2021. The rights were
designed to give incentive to the employees and Executive Directors to provide dedicated and ongoing commitment
and effort to the Consolidated entity and aligning the interest of both employees and shareholders.
Set out below are summaries of rights granted under the plan:
Expiry
date
Exercise
price
Grant
date
2022
1 July
2019
29 June
2024
28 November
2019
26 November
2024
11 December
2020
10 December
2025
19 November
2021
18 November
2026
$0.00
$0.00
$0.00
$0.00
Grant
date
2021
Expiry
date
Exercise
price
1 July 2019
29 June 2024
28 November
2019
26 November
2024
11 December
2020
10 December
2025
$0.00
$0.00
$0.00
Balance at
start of
the year
Number
50,000
168,320
107,168
Granted
during
the year
Number
-
-
-
Exercised
during
the year
Forfeited
during
the year
Number
Number
-
-
Balance
at end of
the year
Number
50,000
(7,998)
(9,113)
151,209
(6,531)
(13,998)
86,639
127,139
127,139
325,488
127,139
(64,529)
(23,111)
364,987
Balance at
start of
the year
Number
50,000
184,820
Granted
during
the year
Number
Exercised
during
the year
Forfeited
during
the year
Number
Number
-
-
-
(7,853)
-
(8,647)
Balance
at end of
the year
Number
50,000
168,320
-
107,168
-
-
107,168
234,820
107,168
(7,853)
(8,647)
325,488
As of 30 June 2022
37. SHARE-BASED PAYMENTS (continued)
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
19 November
2021
18 November
2026
Share price
at grant
date
Exercise
price
Expected
volatility
Dividend
yield
Risk-free
interest rate
Fair value at
grant date
$5.21
$0.00
34%
4.8%
0.1%
$4.10
Rights exercised during the financial year 64,529 (2021: 7,853).
The weighted average remaining contractual life of rights outstanding at the end of the financial year was 3.2 years
(2021: 3.7).
(b) Loan funded shares
On 18 January 2022, the company issued limited recourse loan funded shares to two executives totalling to 150,000
shares (including 50,000 shares to Justine Campbell). The transaction of limited recourse loan was accounted as share
based payments in accordance with AASB 2. The valuation was carried out under Black Scholes option pricing model.
Grant date
Expiry date
24 January
2022
23 January
2032
Share price
at grant
date
Exercise
price
Expected
volatility
Dividend
yield
Risk-free
interest rate
Fair value at
grant date
$5.02
$5.02
30.0%
0%
1.62%
$1.47
The term of the grant was considered as 5 years. Under the terms of the arrangement, dividends are assumed to be
automatically applied towards repayment of the loan, effectively reducing the exercise price. Therefore, to reflect the
impact on the assessed value of the loan funded shares, no dividend yield has been included in the valuation model.
Accordingly, the share-based payments expense recognised on account of this grant is $220,500 (including $73,500
share-based expenses resulting from 50,000 loan shares issued to Justine Campbell).
(c) 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 exercised during the financial year 14,529 (2021: 7,853).
The weighted average remaining contractual life of rights outstanding at the end of the financial year was 3.2 years (2021: 3.7).
Rights issued under the Incentive Performance rights plan
Share-based expense relating to Loan funded shares
2022
$
487,419
220,500
707,919
2021
$
438,517
-
438,517
76
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FY2022 FINANCIAL REPORT | 30 JUNE 2022
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As of 30 June 2022
38. PARENT ENTITY FINANCIAL INFORMATION
(a) Summary Financial Information
The individual financial report for the parent entity shows the following aggregate amounts:
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 reserve
Retained earnings
Profit after income tax
Total comprehensive income
2022
$
2021
$
26,274,640
50,396,013
76,670,653
2,092,262
10,433,270
12,525,532
64,145,121
19,344,160
1,333,109
43,467,852
64,145,121
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
17,344,811
17,344,811
6,440,102
6,440,102
(b) Guarantees Entered into by the Parent Entity
In 2018, the parent entity entered 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 2022 or 30 June 2021.
(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 2022 or 30 June 2021.
(e) Significant accounting policies
The accounting policies of the parent entity are consistent with those of the consolidated entity, as disclosed in note 1,
except for the following:
•
•
•
Investments in subsidiaries are accounted for at cost, less any impairment, in the parent entity.
Investments in associates are accounted for at cost, less any impairment, in the parent entity.
Dividends received from subsidiaries are recognised as other income by the parent entity and its receipt may
be an indicator of an impairment of the investment
78
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FY2022 FINANCIAL REPORT | 30 JUNE 2022
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ANSTO Australian Synchrotron, Victoria
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In the Directors’ opinion:
(a)
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;
(b)
(c)
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 2022 and of its performance for the financial year
ended on that date;
(d)
There are reasonable grounds to believe that the Consolidated entity 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
23 August 2022
Track inspection, Melbourne, Victoria
80
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FY2022 FINANCIAL REPORT | 30 JUNE 2022
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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 2022, 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 2022 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
Independent Auditor’s
Report (continued)
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 $228,711,210
revenue from contracts with customers. As disclosed
in note 1 (d), these revenues are recognised over time
as performance obligations are fulfilled.
Construction contracts, engineering and
related
services revenue is recognised by the Group 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
judgmental
conditions,
revenue recognition from contracts.
Impairment of goodwill
Refer to Note 14 in the financial statements
The carrying amount of goodwill at 30 June 2022 was
$6,207,274.
to complex and
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.
Our audit procedures included:
assessing management’s
considering the appropriateness of the revenue
recognition policies applied by the Group against
the criteria in the accounting standards;
considering contractual terms with customers and
testing project revenues and costs
incurred
against underlying supporting documents;
assumptions
in
total
total budgeted cost
the stage of completion,
determining
transaction price and
estimate;
checking the mathematical accuracy of revenue
and profit recognised during the year based on the
stage of completion;
considering customers’ and 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;
discussing with
and
project
management the rationale for revisions made to
budgeted
supporting
documentation; and
costs and
personnel
checked
assessing disclosures in the financial report
the
against
requirements of the accounting standards.
the results of our
testing and
Our audit procedures included:
Considering the appropriateness of the value in
use model applied by the Group against the
criteria in the accounting standards;
assessing management’s determination of how
the
goodwill is allocated to each CGU;
key
challenging
assumptions,
flow
projections, expected revenue growth rates and
the discount rate;
reasonableness
of
cash
including
future
assessing management’s sensitivity analysis over
the key assumptions used in the model;
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;
assessing disclosures in the financial report
the
against
requirements of the accounting standards.
the results of our
testing and
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Independent Auditor’s
Report (continued)
Independent Auditor’s
Report (continued)
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 2022 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 2022.
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 2022, 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: 23 August 2022
JAMES KOMNINOS
Partner
84
FY2022 FINANCIAL REPORT | 30 JUNE 2022
FY2022 FINANCIAL REPORT | 30 JUNE 2022
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Board of Directors
Michael John Caratti
Non-Executive Chairman
Peter De Leo
Managing Director
Rodney Lloyd Leonard
Non-Executive Director
Bruno Ruggiero
Executive Director
Karl Anthony Cicanese
Executive Director
Steven John Micheil Chadwick
Non-Executive, Independent Director
Louise Bower
Non-Executive, Independent Director
Audit Committee
Peter De Leo
Rodney Leonard
Louise Bower
Remuneration Committee
Michael Caratti
Steven Chadwick
Risk Committee
Peter De Leo
Rodney Leonard
Bruno Ruggiero
Company Secretary
Justine Campbell
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
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
The shareholder information set out below was applicable as at 6 August 2022.
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
There were 100 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:
Holding
1 REESH PTY LTD
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