Financial Report
30 JUNE 2023
Bomboré Gold Project, Burkina Faso
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Séguéla Gold Project, Côte d’Ivoire
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
Front cover image - Séguéla Gold Project, Côte d’Ivoire
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LYCOPODIUM LIMITED FY2023 FINANCIAL REPORT | 30 JUNE 2023LYCOPODIUM LIMITED FY2023 FINANCIAL REPORT | 30 JUNE 2023
FY23
Directors’ Report
The Directors present their Annual Report to the members, together with
the audited Consolidated Financial Statements of Lycopodium Limited (the
‘Company’ or ‘parent entity’) and its subsidiaries (the ‘Group’ or ‘consolidated
entity’), for the financial year ended 30 June 2023 and the Statement of
Financial Position of the consolidated entity as at 30 June 2023.
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
Bruno Ruggiero
Karl Anthony Cicanese
Rodney Lloyd Leonard
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 dividends for year ended 30 June 2022 of 36.0 cents (2021: 15.0 cents) per fully paid
share paid on 7 October 2022 (2021: 8 October 2021) Fully franked based on tax paid at
30% (2021: 30%)
2023
$
14,306,481
2022
$
5,961,034
Interim dividend for the year ended 30 June 2023 of 36.0 cents (2022: 18.0 cents) per fully paid
share paid on 6 April 2023 (2021: 7 April 2022) Fully franked based on tax paid at 30%
(2022: 30%)
14,306,481
7,153,240
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 $17,883,102 (45.0 cents per fully paid share) to be paid on 6 October 2023 out of retained
earnings at 30 June 2023 (2022: $14,306,481). This brings the total dividend declared for the year ended 30 June 2023 to
81.0 cents (2022: 54.0 cents).
28,612,962
13,114,274
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Revenue
$327.6 million
NPAT
$46.8 million
Total
Dividend 81 cents
FY2023 has been a very successful
year for the Company, in which we
have delivered a significant portfolio
of studies and projects around the
world, across our core operating
sectors of Resources, Infrastructure
and Industrial Processes.
Directors’ Report
Review of Operations
Full Year Results
For the financial year ended 30 June 2023, Lycopodium
generated revenue of $327.6 million and net profit after tax
of $46.8 million. These results represent record highs for
the Company. The Directors have resolved to pay a final
dividend of 45 cents per share. The total dividend for the
year is 81 cents fully franked.
Activities for the Past Year
With a number of substantial projects underway, we have
continued to welcome new people to the business, with
more than 1,100 personnel working with us in our offices
and on our project sites across the globe.
Investment in our people is critical to attracting and
maintaining a high-performing workforce, and therefore
throughout FY2023, we have continued to roll out initiatives
focused on providing the support and tools required to
enable our people to perform at their best.
This includes the introduction of our global HR Information
System (HRIS), providing a standardised platform across
all operating entities to facilitate workplace efficiencies.
Implementation of this system is the first step in the roll out
of a broader enterprise resource planning (ERP) system that
will tie together a multitude of business processes and enable
the flow of data between them, eliminating duplication and
supporting data integrity. Development of the ERP has been
ongoing throughout 2023, with the platform due to be
launched across the business later this year.
We also introduced our new Engagement and Performance
Management platform, with our first global employee
engagement survey undertaken in late 2022. This platform
facilitates an approach of continual performance feedback
in managing performance and career pathways, enabling
us to listen to our people, reflect on their feedback, and
use this information to develop initiatives and strategies for
continuous improvement.
In support of our commitment to fostering a culture of
learning and empowering our people to drive their own
development, we embarked on the next phase of e-learning
at Lycopodium, with the introduction of a new platform
focused on delivering specific custom modules using
engaging learning techniques.
We also launched a new employee reward, recognition and
wellbeing platform, providing staff with access to an array of
benefits and discounts, plus health and fitness information
and tools. The platform also provides the ability to share
staff achievements and awards.
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Our Emerging Leaders Program, which was first introduced
across our Australian operations in May 2022, has entered
its next cycle, this time encompassing talent from around
the globe to participate in this nine-month leadership
program focused on the development of the middle
management levels within the business.
These initiatives, combined with our continued pursuit of
winning and executing exciting, challenging and rewarding
new work, seeks to make us the employer of choice
amongst our peers and allow us to continue to attract,
develop and grow our talent pool.
Knowledge management remains an integral strategic focus
for the business, and as such, we also continue to invest in
initiatives that support the functionality and effectiveness of
our network and systems. This includes updating our project
collaboration software, to facilitate efficient access to, and
sharing of, information across our global operations.
With a focus on broadening our geographical reach, our
Canadian business has grown steadily over the past decade,
as the Lycopodium brand has continued to cement itself
with clients in the Americas. In 2023 our Canadian team
successfully delivered its first major project, the Séguéla
Gold Project in Côte d’Ivoire, with first gold pour achieved in
May. Earlier this year, we relocated from our existing Toronto
office to a nearby location that provides 50% more floor
space to accommodate our growing team.
Lycopodium’s participation in the energy shift, through
our new service offering, Lycopodium Energy, is broad-
based and leverages the diverse range of skills that
reside within the business. Over the past couple of years,
we have considered participation across a spectrum of
industries associated with the energy shift and are now
actively participating in a number of initiatives related to
renewable energy generation, energy storage, the global
battery revolution and decarbonisation. These initiatives are
explored in greater detail in the Innovation section of this
report.
Outlook
We have seen a slowing in the global economy during
2023, as interest rates have continued to rise to combat
inflationary pressure. Geopolitical tensions have impacted
household and business confidence, lowering resource and
energy commodity demand. There is however significant
upside forecast for investment in commodities intrinsic to
the global energy transition, particularly buoyed by the
incentives provided for low emission technologies under
the US Inflation Reduction Act (IRA).
Introduction of the IRA, coupled with the high price of
fossil fuels, is likely to accelerate the push towards low
emission technologies, supporting the market expansion of
commodities including lithium, copper, cobalt and nickel.
A supply deficit is anticipated as early as 2024, with electric
vehicle sales expected to double by 2027. The strong
demand outlook for battery metals is attracting capital
to build global supply, with numerous new projects and
expansions in the pipeline.
Demand for iron ore is strengthening, as China, the world’s
largest importer, returned to normal activity levels and
Kathleen Valley Lithium Project, Western Australia
a resumption in infrastructure investment following the
abolition of lockdowns and its zero-COVID policy in late
2022. As demand is expected to steadily increase over
coming years, this will be supported by the continued
development of greenfield and extension projects in
Australia by established and emerging producers. Global
supply will be further strengthened by emerging producers
in Africa, with new projects currently under development.
Global gold demand increased in 2022 to an 11-year
high and official sector buying by central banks has seen
it remain steady through 2023. Consumer demand for
gold, including jewellery, gold coins and bars, is expected
to continue to grow over the long-term, while demand
remains steady for gold used in the manufacturing of
technology, including smartphones and watches, and its
use in dentistry and medicine.
For our Infrastructure business, Australia’s railway
construction and maintenance activity is set to continue
to grow in the coming years, with a number of significant,
publicly funded projects ramping up across the country.
This strong pipeline of new construction work includes
heavy haul, freight and passenger projects. Correspondingly,
maintenance and rail infrastructure management (RIM)
activity is also expected to increase in order to maintain this
growing rail network. Growth in maintenance activity is also
due to increased rail remediation works required as a result
of rising events related to climate change, including floods,
droughts, bushfires and coastal erosion.
Within the Industrial Processes sector, we are continuing to
see a shift to domestic manufacturing, driven initially by the
pandemic and now further led by geopolitical uncertainty.
With an impetus for many companies to onshore their
operations, the manufacturing industry in Australia is set
to expand and become competitive not only locally, but
globally. The ongoing development of emerging markets,
including waste and recycling, water and wastewater,
and hydrogen, is also continuing to drive sector growth.
Locally produced hydrogen will be essential to Australia’s
strategy to decarbonise our economy and increase clean
energy exports and will contribute to regional and global
decarbonisation targets.
Operational Highlights
FY2023 has seen an ongoing ramp-up of onsite activity, with
a number of major projects mobilising to site, in delivery or
completed, and with more than 8 million manhours worked
over the 12-month period.
HSE
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.
FY2023 was an extremely busy period of site construction
activity, with 8.2 million manhours worked (compared to
3.2 million in FY2022), and a Lost Time Injury Frequency
Rate (LTIFR) of zero against an Australian construction
industry average of 8.8. This is a significant achievement and
a testament to the diligence and commitment of our people
on the ground in providing and upholding a safe working
environment for everyone.
We remain committed to providing our people with the
tools and resources required to maintain our exemplary
safety standards. During the year, we engaged our first
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indigenous HSE trainee, who will soon graduate the
traineeship program and take her place on one of our
Western Australian projects.
RESOURCES
Our delivery of studies and projects spans most major
commodities, including in FY2023, gold, lithium, diamonds
and gems, copper, nickel, battery minerals, mineral sands,
uranium, vanadium and other rare earths. We continue
to deliver for our clients around the world, most notably
in Africa, Australia, Southeast Asia and North and Central
America.
We have a number of significant Engineering,
Procurement and Construction Management (EPCM)
projects that commenced engineering and onsite works
over the past 12 months.
In gold, this includes mobilising to site on the Ahafo North
Project in Ghana (Newmont), the Lafigué Project in Côte
d’Ivoire (Endeavour) and the Sabodala-Massawa BIOX®
Expansion Project in Senegal (also for Endeavour) and
commencing engineering design on the Kiaka Project in
Burkina Faso (West African Resources) and the Baomahun
Project in Sierra Leone (FG Gold). Having completed
the construction and commissioning of the Navachab
Expansion Project in Namibia (QKR) in late 2022 we have
since commenced work on the mine’s new primary
crushing plant.
Further strengthening our position as a leading partner
in the design and delivery of battery metals projects in
Australia and Africa, we commenced work on site for two
globally significant lithium projects, the Kathleen Valley
Project in Western Australia (Liontown), one of the world’s
largest hard rock lithium deposits, and the Goulamina
Project in Mali (Leo Lithium), which will be West Africa’s
first operating lithium mine. Construction also continued
throughout the year on our two projects at the Greenbushes
lithium operation in Western Australia (Talison Lithium), with
completion of the Mine Services Area Relocation Project
mid-2023 and works progressing on the Chemical Grade
Processing Plant #3 Project.
Delivery of the Batu Hijau Process Plant Expansion Project in
Indonesia (PT Amman Mineral Nusa Tenggara) is ongoing,
extending the life of the mine, one of Indonesia’s largest
copper and gold mines, until at least 2030.
During the year, we completed a number of major
projects, including the Bomboré Gold Project in Burkina
Faso (Orezone), the Motheo Copper Project in Botswana
(Sandfire), the Cobré Ball Mill 6 Project in Panama (First
Quantum), and the Séguéla Gold Project in Côte d’Ivoire
(Fortuna Silver Mines). We have subsequently moved on
to the next stage of development on two of these projects,
the Bomboré Expansion Study and completion of detailed
engineering design for the Motheo Expansion Project.
Other projects completed during the year include the
engineering scope for the Gruyere Pebble Circuit Upgrade
Project in Western Australia (Gruyere Management Pty Ltd),
with the structural and mechanical construction work now
underway, the Sukari Paste Plant Project in Egypt (Centamin)
and progressing design for the Boto Gold Project in Senegal
(Managem).
There remains a strong pipeline of studies in delivery,
including most notably, the recent award of the Feasibility
Study and Basic Engineering scope for Barrick’s Reko Diq
Copper-Gold Project in Pakistan. Reko Diq is one of the
largest undeveloped copper-gold deposits in the world,
with the construction and operation of the mine significantly
contributing to Pakistan’s economy, and we are extremely
pleased to have the opportunity to be involved with this
major development from inception.
Other notable studies delivered over the period include
the Pre-feasibility Study (PFS) and Definitive Feasibility
Study (DFS) for Rio Tinto’s Winu Copper Project in Western
Australia, the DFS for B2Gold’s Anaconda Area Project
in Mali, the DFS for Perseus’ Meyas Sand Gold Project
in Sudan, the DFS for Osino’s Twin Hills Gold Project in
Namibia, and the Feasibility Study (FS) for Troilus Gold’s
Troilus Gold Project in Canada.
ADP Marine & Modular (ADP), Lycopodium’s specialist
subsidiary in South Africa, is continuing to progress Paladin
Energy’s Langer Heinrich Restart Project in Namibia,
providing the EPCM services to bring the mine back into
operation. ADP is also delivering the Mutamba Mineral
Sands Project pilot plant on a greenfield site in Mozambique
for Rio Tinto. The commissioning of the first Dry Mining
Unit (DMU) on site at the Grande Côte mineral sands
Dry Mining Unit, Senegal
operation in Senegal in September 2022 has been a notable
achievement for ADP during FY2023. Client feedback on
the performance of the DMU has been very positive and we
look forward to developing further opportunities to bring
this innovative operating cost saving product to market.
Through the year, ADP continued to service its long-term
clients, including De Beers/Anglo American with delivery
of the FS for De Beers/Anglo American’s FutureSmart
Diamond Processing Plant in Canada and Namdeb, having
signed a new multi-year services contract. Namdeb is in the
process of extending the life of its land-based operations for
a further 20 years.
As a global leader in comminution circuit design and
optimisation, our wholly owned subsidiary Orway Mineral
Consultants (OMC), continues to be a critical technical
partner to our Resources business. OMC provides specialist
services in flowsheet development, optimisation and
process design, as well as supporting our clients to maximise
operational performance post project completion. Experts
in plant dynamic modelling, OMC is also an integral element
of our digital engineering strategy.
INFRASTRUCTURE
In Infrastructure, we continue to provide design,
engineering, technical advisory and Rail Infrastructure
Management (RIM) services for greenfield and brownfield
rail projects across Australia. The Australian Rail Track
Corporation’s (ARTC) Southern Highlands Overtaking
Opportunities Detailed Design package, to improve the
efficiency of freight and passenger services between Sydney
and Melbourne, is a significant scope of work undertaken
in FY2023. Our Infrastructure business has recently been
awarded a three-year contract to conduct visual rail
inspections and assessments for 57 Pacific National sites
across Australia, which represents a steady stream of work
going forward.
INDUSTRIAL PROCESSES
In Industrial Processes, the provision of design consultancy
services is ongoing for Commonwealth Serum Laboratories
(CSL) for the development of base vaccine component
production and plasma and blood facilities, including
providing the detailed engineering scope for CSL’s world-
class influenza vaccine manufacturing facility being built
in Melbourne. Works are also continuing with Australia’s
Nuclear Science and Technology Organisation (ANSTO) at
its Australian Synchrotron facility, in the delivery of Project
BRIGHT, to expand both the capacity and capability of the
facility’s beamline infrastructure. The business has been
involved in many of the Energy related initiatives undertaken
throughout the year, including in hydrogen, battery minerals,
battery recycling and waste to energy technologies.
Innovation
Our commitment to innovative thinking, challenging the
status quo and seeking ways to do things better, and our
participation in the energy shift, has seen us progress a
number of significant initiatives throughout the year.
From an internal perspective, we continue to receive
outstanding ideas put forward by our people for our
bi-annual Innovation Award.
DIGITAL ENGINEERING
FY2023 has proven to be a foundational as well as pivotal
year in the advancement of our digital engineering service
offering. Lead by ADP in Cape Town, our focus in the
development of our capability over recent years has
been three pronged.
Firstly, plant dynamic modelling. This involves extensive use
of both dynamic as well as discrete event simulation tools.
We have progressed steadily to the point where several
clients, including a major tier one diamond mine, have
initiated service level agreements for both development
and operational use of our modelling for overall plant
optimisation. Andritz, as a partner, together with OMC, are
key subject matter experts (SME) in the development and
implementation of this capability. In diamonds this is used
for both predicting plant performance and carat recovery
performance, as well as optimising mine blending and
production/revenue profiling, on a routine basis. We are
applying this modelling experience into gold, lithium, lead-
zinc, fluorspar, diamonds, iron ore and other commodities.
Secondly, we are using the best-of-breed platforms to
develop static digital twins, and thirdly, we are integrating
both the dynamic and static digital twins into an overall
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and Sumitomo, and the Hydrogen Energy Supply Chain
(HESC) coal-to-hydrogen plant in Loy Yang, Victoria.
Our participation in a range of other hydrogen studies
and projects continues.
We see opportunities in providing balance of plant support
to utility scale renewables projects combining solar and wind
to produce hydrogen for export, either cryogenically or as
ammonia. This is a space that is emerging and although no
major export projects have been announced in Australia, we
would like to be able to support international technology
vendors by “Australianising” their unit processes and then
integrating their processes into a consolidated project.
The hydrogen sector is still quite nascent in Australia, but
we are well positioned to participate when the sector
gains momentum.
FBICRC
Lycopodium is actively involved in alternative battery
chemistries through research conducted as part of our
participation in the Future Battery Industries Cooperative
Research Centre (FBICRC), with notable alternative
chemistries being the vanadium redox flow batteries
(VRFB) and sodium-ion batteries. We recently completed
a design for the Queensland Government of a multi-user
facility to recover battery grade vanadium and other
critical minerals. We continue to work with the Queensland
Government, along with the FBICRC, to present workshops
on how this multi-user facility can be utilised by industry to
produce sufficient quantities of battery grade material to
undertake compliance testwork with downstream battery
manufacturers. Much of this work is being executed from
our Brisbane office.
The circular economy for large scale batteries is going to
emerge over the next decade. One of the major challenges
for battery recycling is the safe storage and transport of
batteries, given the high fire risk that exists with partially
spent lithium batteries in particular.
Value-adding to battery minerals is a strategic ambition of
the Australian federal and state governments and an area
of the value chain we are positioning ourselves in which
to participate. We reported last year on our Front End
Engineering and Design (FEED) of the Pre-Cathode Active
Material (PCAM) pilot facility in Western Australia, producing
NI-Co-Mg PCAM. The facility is operating successfully.
We were also engaged to design and deliver a lithium ferro-
phosphate cathode precursor pilot facility. This work was put
on hold to allow market soundings by our client, with the
result being an increase in the scale of the facility to meet
demand, with this work now proceeding.
The full battery value chain relies on batteries being
recycled and valuable metals recovered. We are
contributing to this circular economy through a Study and
FEED awarded to the FBICRC by the New South Wales
Government for a battery recycling project based on a
distributed model, where battery “black mass”, recovered
from battery shredding facilities located in regional areas,
is transported to a centrally located hydrometallurgical
processing facility for recovery of the battery metals.
Lycopodium is providing design and engineering services
to the FBICRC for this project.
DECARBONISATION
We are positioning ourselves as an integrator of
technologies along the energy shift value chain as it
applies to the minerals sector. In addition to participating
FBICRC - Pre-Cathode Active Material (PCAM) pilot facility, Western Australia
MillROC
connected twin that can extend (together with our mining
digital software partner, Sight Power) to a mine-wide digital
twin solution.
ORWAY IQ
MillROC (Mill Remote Optimisation Consulting and
Coaching) continues to be developed by Orway IQ (OIQ),
which is a collaboration between Molycop and Orway
Mineral Consultants.
This online platform provides cloud-based, customised
data analysis and dashboards for optimisation of mineral
processing plants. It is used by OIQ’s specialist consultants
to deliver real-time coaching and implementation of
continuous improvement in plant operations. The main goal
for MillROC is to drive efficiency and reduce the carbon
intensity when producing mineral concentrates and metals
in the processing of minerals.
Based initially around comminution circuit optimisation,
OIQ has now expanded MillROC to provide similar services
for processes downstream of comminution, such as leach
and flotation circuits. 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. Advanced
KPIs are set and visualised, with recommended changes
in operating practises automated when these KPIs are not
achieved.
Our Minerals business is now offering MillROC as an option
to be included in all EPCM and EPC projects, enabling us
to offer a more comprehensive service to our clients to
assist them throughout the commissioning, ramp-up and
warranty period to assure project success.
RENEWABLE ENERGY GENERATION AND
ENERGY STORAGE
Our participation in renewable energy generation is
through our partly owned entity, ECG Engineering, which
has recently completed a battery storage research project
at the Sukari Gold Mine in Egypt. One of the complexities
associated with combining renewable and thermal energy
sources in remote locations is managing the energy system
to facilitate stability in voltage and frequency, while ensuring
there is adequate inertia in the system to cope with large
spikes in energy demand that can occur during mill startups
and similar actions that place a huge energy demand on the
system within a short period of time. ECG is a specialist in
this area.
Energy storage is the key area of global research at present,
as cost-effective storage is critical in providing capacity
during periods of time when solar and wind sources are not
available for energy generation. Energy storage areas in
which we actively participate are batteries and hydrogen.
Lithium-ion batteries are standard additions to hybrid
renewable/thermal power solutions on mine sites, with
capital costs for lithium battery storage currently limiting
renewable energy penetration at these sites. ECG routinely
sizes and includes lithium-ion batteries in hybrid power
system designs.
Hydrogen is a potentially huge area of energy storage.
A wide number of hydrogen studies have been funded
by ARENA over the past three years, with only a few
progressing towards pre-commercial scale operations.
Our hydrogen capability sits with our Process Industries
business located in Melbourne. Two significant projects in
which we are involved are the 2.5 MW Yarwun Hydrogen
Calcination Pilot Demonstration Program of Rio Tinto
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in emerging new energy technologies, a major area of
activity for Lycopodium is in decarbonisation. Our internal
systems are being reviewed and updated to ensure that,
firstly, we capture Scope 1, 2 and 3 carbon emissions in
our designs and in our project delivery strategies. Given
the ever-increasing level of compliance required around
carbon reporting, we must be able to accurately report our
own carbon footprint and also the carbon footprint of the
projects we will deliver for our clients.
Once emissions data is systematically collected, we are able
to execute the second major area of our decarbonisation
activity – incorporating new designs and technologies to
reduce absolute carbon emissions for our clients. This is
reliant on collaboration among the core areas of renewable
energy generation, mine electrification and process plant
design, to displace, reduce, capture, or offset carbon
emissions, all of which reside within the capabilities of
Lycopodium and ECG.
Community
We support the communities in which we live and work, in
particular social development and education endeavours,
through the Lycopodium Foundation.
This includes continuing our 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. During the year,
we established a Design Scholarship and School-based
Traineeship program for Clontarf students.
We have been active in supporting the local Greenbushes
community in Western Australia’s south-west, where we
are delivering a number of projects and studies for Talison
Lithium. This includes providing financial assistance for a
number of initiatives, including the relocation of the historic
Greenbushes Railway Station to the Greenbushes Discovery
Centre; support of the Blackwood Youth Action group’s Art
Program, which supports youth mental health; the Grow
Greenbushes initiative, for the Greenbushes Youth Precinct
Development; and support of the Greenbushes Primary
School’s STEM Program.
This year, we are very pleased to have had the opportunity
to support the Royal Western Australian Historical Society
(RWAHS) in its effort to rehouse the RWAHS within a
proposed purpose-built History West Community Centre.
Our contribution was made in recognition of the important
work undertaken by the RWAHS in the preservation and
promotion of Western Australia’s history.
In Africa, we continue our long-standing support of BASICS
International, a non-government organisation (NGO)
committed to protecting the basic human rights of children
to education, shelter, food and safety. We are working
with the BASICS team to progress its initiative to establish
a camp for children in the countryside outside of Accra in
Ghana. Also in Ghana, we supported an initiative of our
client, Newmont, providing funds towards the construction
of a Child Welfare Clinic at St Elizabeth Hospital in Hwidiem
and for the provision of classroom furniture for Our Lady of
Apostles Girls Senior High School in Ho.
Throughout the year, we supported various charitable
initiatives championed by our staff, including Jeans for
Genes, for which we have raised more than $400,000 since
our partnership began back in the 1990’s, Movember, the
Push-Up Challenge, 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, continues to provide us with a
valuable resource in support of the work we undertake in
this region.
Peter De Leo
Managing Director
Lycopodium Limited
Acknowledgement
FY2023 has been a very busy and rewarding year for the business. We secured a wide range of new studies and
projects, we mobilised to site on a number of projects, and we successfully delivered several significant projects.
On behalf of the Board of Directors, I thank our staff for their hard work and commitment which has enabled us
to realise this success. We can all be very proud of the strong position the Company is in as we move forward
into FY2024.
I would also like to acknowledge and thank our clients, for the continued trust they place in us to work
alongside them in the delivery of their projects.
A summary of consolidated revenues and results for the
financial period by reportable operating segment is set
out below:
Minerals - Asia Pacific
Minerals - North America
Minerals - Africa
Project services - Africa
Process Industries
Other
Intersegment eliminations
Unallocated
Total
Income tax expense
Profit for the year
Less: Loss/(profit) attributable to non-controlling interest
Profit attributable to owners of Lycopodium Ltd
Segment revenues
Segment results
2023
$
175,898,294
82,082,105
62,699,145
11,314,460
12,038,070
39,322,360
(59,475,051)
3,692,120
327,571,503
2022
$
104,576,794
51,155,417
42,514,478
7,269,200
11,653,876
28,733,157
(16,272,730)
2,526,641
232,156,833
2023
$
15,861,075
13,964,950
16,156,984
2,571,700
4,011,035
8,702,237
-
2,008,682
63,276,663
(17,718,082)
45,558,581
1,221,850
46,780,431
2022
$
28,432,069
2,420,380
7,987,780
1,611,640
2,597,395
2,734,374
-
(6,856,990)
38,926,648
(12,074,774)
26,851,874
325,827
27,177,701
Risk Management
Overview
Lycopodium has a robust approach to risk
management in order to provide sustainable
long-term value to its shareholders. Strong
risk management practices enable the Board
and management to make strategic decisions
that align with the risk appetite of the
business. Our risk management framework
provides a whole of business approach
and sets out the process for the identifying,
evaluating, monitoring, reviewing and
reporting of risk. The Board has established a
Risk Committee which monitors, reviews and
reports on our risk management throughout
the business. We undertake risk assessments
and workshops to evaluate and prioritise
risks. These include emerging risks which
may present the business with medium to
long-term risk exposure. We use qualitative
and quantitative methods to define risk
consequences. We view consequences
across a range of possible financial and non-
financial impacts, such as health and safety,
environmental, reputational, commercial and
legal and community. To prioritise risk we use
our Company risk matrix and consider the
risk’s consequences as well as its likelihood.
This assists in identifying risks that have the
potential to be the most significant.
Risk
Management
Process
Identify
Report
Monitor
Measure
Manage
10
LYCOPODIUM LIMITED FY2023 FINANCIAL REPORT | 30 JUNE 2023
LYCOPODIUM LIMITED FY2023 FINANCIAL REPORT | 30 JUNE 2023
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In FY2023 we identified seven strategic risks that could influence the sustainability of our business. These risks, with an
outline of our mitigation controls, are set out in no particular order and are not an exhaustive list of risks that may impact
Lycopodium, however are considered to be the most significant.
Risk and
Context
Harm to our
people
Project
delivery
Description
Lycopodium Controls
A safe and healthy work
environment is fundamental
to our values.
The nature of our work and
the geographies in which we
work means our people are
at higher risk of experiencing
incidents including life-
changing events which have the
potential to cause physical and
psychological harm.
We are committed to protecting the health, safety and wellbeing of our employees,
contractors and other key stakeholders at all times. We support this through:
- comprehensive health and safety policies, standards and systems designed to
prevent and mitigate potential exposure to health, safety and security risks
- investigating actual and potential significant events that could have led to injury
or harm
- regularly reviewing and auditing our health and safety systems and processes
- being prepared with emergency, incident and crisis management plans
- providing regular hazard awareness updates, sharing of lessons learnt and training
Unsuccessful fixed price
contracts can have a material
impact on the business if they
are not managed correctly.
Time delays, project staffing,
client and subcontractor
relationship management
and greater macro-economic
impacts to cost of supplies
and equipment can all have
significant impact on the
outcome of fixed priced
contracts.
Cost overruns, schedule
blowouts and litigation with
client and subcontractors can all
impact company cash flow and
reputation as well as put stress
on the greater workforce.
All projects are carefully managed by Lycopodium from initial assessment through
to the completion and handover to the client.
We support our engineers, construction and other project delivery specialists with:
- Strong Go/No Go project assessments
- Project Delivery Framework which supports execution through knowledge
management systems and standardised delivery processes
- Commercial Management Framework including contracting strategy, assessment
of risk for each project and claims management processes
- Use of the Technical Assurance Group (TAG)
- Project Services Group (independent of the project delivery teams) provides
oversight for cost control and schedule management; including the use of earned
value management techniques (EVM)
- Working with a strong proven subcontractor base offshore
- Experienced project management teams
- Documented Principles of Contracting
- Project Governance Structure of monthly project performance reviews for early
detection of project concerns
Technical
failure
of project
A project or study fails to meet
its intended purpose due to
technical deficiencies or major
delivery failure giving rise to
major claims on Lycopodium
and its insurers.
A variety of factors can
contribute to technical
failures within the complex
environments that Lycopodium
works. Management oversight
on projects, lack of training,
poor change management and
lack of definition or direction
from clients can all contribute
to technical deficiencies on
projects.
Lycopodium uses robust review and training processes to mitigate technical risks
to the maximum extent reasonably possible, including:
- Technical and peer review teams and processes
- Use of the Technical Assurance Group (TAG)
- Commercial team – all contracts vetted and negotiated
- ISO9001 aligned procedures and processes
- Management overview
- Pre-approval and vetting of vendors and consultants
- Training programs and mentoring
- Having the originating office to be held accountable for assurance
- Involving project delivery focused personnel in the development and
agreement of performance guarantees
Risk and
Context
Sovereign
/ human
rights and
security
risks
Material
litigation
Attract,
retain and
develop
talent
Cyber
security
Description
Lycopodium Controls
Lycopodium operates across
multiple geographical locations.
Some of these jurisdictions are
subject to sovereign, human
rights and security risks.
Changes in government,
regulation and tax regimes has
the potential to impact our
operational performance and
financial returns.
Given the breadth of clients
and geographical diversity
with whom and across which
Lycopodium operates, the
complexity of contracts with
both clients and subcontractors
can lead to misalignment of
understanding of contractual
commitments / requirements
between the various parties.
Where these issues can’t be
resolved it can result in litigation
that poses the risk of slowing
operations, tying up resources
as well as the reputational and
financial impacts of any action
taken. Depending on where
any litigation takes place, the
timeline to resolution as well as
the costs to the Company can
range from material
to substantial.
Attracting, retaining and
developing employees
continues to be a high priority
for the business, however it is a
challenging talent market.
The growing volume and
complexity of cybercrime is
increasing.
Lycopodium could experience
business interruptions to critical
IT services or other breaches
of its information systems
that could lead to the loss of
intellectual property.
We seek to develop a comprehensive understanding of the overseas jurisdiction
before entering it:
- Comprehensive due diligence on any prospective new country
- Employ a variety of commercial and contracting strategies to mitigate in-country
risks
- External specialist advice obtained
- Regularly monitoring our tax risks and engaging specialist independent advice
and assurance
- Monitoring current and potential geographies’ political, economic, security and
social conditions on a daily basis and making and adapting plans accordingly
- Development of policies and plans obligating our personnel and those personnel
and organisations with whom we engage to comply with commitments we have
made regarding human rights, modern slavery, codes of conduct and the like
In order to avoid any material litigation Lycopodium enacts the following throughout
the contracting process:
- Clear consideration and adoption of tailored contracting strategy and risk
assessments for each potential project
- Engaging strong, proven, culturally aligned contractors / subcontractors, who are
generally considered less contractual in their nature and approach
- ‘Back-to-back’ performance obligations to subcontractors where possible in line
with head contract requirements
- Robust claims and general change management processes to manage contracts
throughout their life
- Experienced Project Managers and management team
- Documented Principles of Contracting
- Having contract management processes in place which obligate our project
teams to actively engage in open dialogue with clients, contractors and other key
stakeholders to ensure matters are understood as they emerge and managed in
an efficient and timely basis
We recognise that having resource capacity and capability is core to our business.
Our priorities include:
- A well-defined employee value proposition to attract and engage top talent
- A graduate program that focuses on training and development young talent
- Implementing reward, remuneration and recruitment strategies that position the
Company relative to the market
- Targeted retention strategies and succession plans for critical roles and key talent
- Leadership and mentoring programs for our emerging leaders to strengthen our
capability
Our cyber-security program improves the security environment of our IT
services including:
- Continuing to invest in systems, tools and infrastructure to protect our assets
- Having layered security measures including multi-factor authentication
- Framework in place to align information security policies and standards to
ISO 27001
- Penetration testing and supporting independent assurance of our control
framework and key operating software
- Employee education and training initiatives including phishing awareness and
testing campaigns
- Business resilience plans for cyber-related scenarios
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LYCOPODIUM LIMITED FY2023 FINANCIAL REPORT | 30 JUNE 2023
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Likely developments and
expected results of operations
The Company will continue to provide engineering
consultancy services as detailed above.
Refer to the Review of Operations section within the
Directors’ Report for information regarding the likely
developments and expected results.
Environmental Regulation
The Company’s operations are not subject to
significant environmental regulation under a law of the
Commonwealth or of a State or Territory in respect of its
consulting activities.
Significant changes in the
state of affairs
There are no significant changes in the state of affairs of
the consolidated entity during the year.
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 2023 financial year. The total amount of dividend is
$17,883,102 which represents a fully franked dividend of
45.0 cents per fully paid ordinary share.
With the exception of the above, no other matter or
circumstance has arisen since 30 June 2023 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.
Information on Directors
Michael John Caratti BE (Elec) (Hons)
Non-Executive Chairman
Experience and expertise
Former Managing Director of Lycopodium Minerals Pty Ltd, Mr Caratti has over 40 years’
experience in the mineral processing industry and has had a major role in the development of
the Company's risk management and quality control programmes. Mr Caratti is a Director of
Orway Mineral Consultants (WA) Pty Ltd.
25 October 2001 to present
None
None
Chairman of the Board
Chair of the Corporate Governance Committee
Member of the Remuneration Committee
Ordinary shares of Lycopodium Limited
9,109,367
Mr De Leo has over 30 years’ experience in the engineering and construction fields. Mr
De Leo is the Managing Director of Lycopodium Limited (since November 2015) and was
previously the Managing Director of Lycopodium Minerals Pty Ltd.
1 February 2007 to present
Non-Executive Director of Mondium Pty Ltd
Non-Executive Director of Argosy Minerals Ltd
Chairman of Australia-Africa Minerals and Energy Group Limited
None
Member of the Audit committee
Member of the Corporate Governance Committee
Member of the Risk Committee
Ordinary shares of Lycopodium Limited
971,173
Length of service
Other current directorships
Former directorships in last 3 years
Special responsibilities
Interests in shares
Peter De Leo BE (Civ), CPEng, FIEAust
Managing Director
Experience and expertise
Length of service
Other current directorships
Former directorships in last 3 years
Special responsibilities
Interests in shares and options
14
Bruno Ruggiero BE (Mech), Grad Dip Min Sc, Grad Cert Eng Tech, MIEAust
Executive Director
Experience and expertise
Mr Ruggiero has over 30 years’ experience in the minerals industry. He currently serves as the
Group Technical Director for Lycopodium Limited having overarching responsibility for the
Company’s technical knowledge base, capabilities and direction. Mr Ruggiero is a Director of
Lycopodium Minerals Pty Ltd.
25 October 2001 to present
Non-Executive Director of ECG Engineering Pty Ltd
Non-Executive Director of Quantum Graphite Limited
None
Member of the Corporate Governance Committee
Member of the Risk Committee
Ordinary shares of Lycopodium Limited
3,029,786
Length of service
Other current directorships
Former directorships in last 3 years
Special responsibilities
Interests in shares and options
Karl Anthony Cicanese, MBA
Executive Director
Experience and expertise
Mr Cicanese has over 25 years’ industry experience, with in-depth knowledge of the
Lycopodium business, having held a number of senior roles within Lycopodium Minerals Pty
Ltd, including General Manager, Group Manager and Project Director. Mr Cicanese is currently
Managing Director of Lycopodium Minerals Pty Ltd.
23 November 2020 to present
Non-Executive Director of Mondium Pty Ltd
None
Member of the Corporate Governance Committee
Ordinary shares of Lycopodium Limited
250,092
Length of service
Other current directorships
Former directorships in last 3 years
Special responsibilities
Interests in shares and options
Rodney Lloyd Leonard BE (Hons), MSc, MAusIMM
Non-Executive Director
Experience and expertise
Length of service
Other current directorships
Former directorships in last 3 years
Special responsibilities
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.
25 October 2001 to present
Non-Executive Director of West African Resources Limited
None
Member of the Corporate Governance Committee
Member of the Audit Committee
Member of the Remuneration Committee
Chair of the Risk Committee
Ordinary shares of Lycopodium Limited
902,930
Interests in shares
Steven John Micheil Chadwick BAppSc (Metallurgy), MAuslMM
Non-Executive Director
Experience and expertise
Length of service
Other current directorships
Former directorships in last 3 years
Special responsibilities
Mr Chadwick is a metallurgical engineering with over 45 years experience covering
operations, technical evaluations, project development, engineering design and corporate
management. Mr Chadwick brings extensive industry and operating experience to the board.
11 January 2016 to present
None
Non-Executive Director of Liontown Resources Limited
Non-Executive Director of Quantum Graphite Limited
Member of the Corporate Governance Committee
Chair of the Remuneration Committee
Ordinary shares of Lycopodium Limited
19,657
Interests in shares
Louise Bower HBCompt (Accounting Science), CA
Non-Executive Director
Experience and expertise
Length of service
Other current directorships
Former directorships in last 3 years
Special responsibilities
Interests in shares and options
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.
15 August 2022 to present
Non-Executive Director of DUG Technology Ltd
Non-Executive Director of Babylon Pump & Power Ltd
None
Chair of the Audit Committee
Ordinary shares of Lycopodium Limited
Nil
LYCOPODIUM LIMITED FY2023 FINANCIAL REPORT | 30 JUNE 2023
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Company Secretary
The Company Secretary is Ms Justine Campbell BBus (Acc and Fin), Chartered Accountant.
Ms Campbell is the Chief Financial Officer of Lycopodium Limited and was appointed to the position of Company Secretary
on 30 September 2019. Ms Campbell has a strong track-record of financial leadership and transformation in ASX-listed
companies.
Meetings of Directors
The numbers of meetings of the Company’s board of Directors and of each board committee held during the year ended
30 June 2023, and the numbers of meetings attended by each Director were:
Number of Meetings Held
Michael John Caratti
Peter De Leo
Bruno Ruggiero
Karl Anthony Cicanese
Rodney Lloyd Leonard
Steven John Micheil Chadwick
Louise Bower
Board
11
Audit
2
Board Committees
Remuneration
2
Number of Meetings Attended
11
11
9^
10^
11
10^
10**
*
2
*
*
2
*
2
2
2***
*
*
2
2
*
Risk
2
*
2
1^
*
2
*
*
* Not a member of the Committee
**Appointed on 15 August 2022
***By Invitation
^ Away on Company business
Remuneration Report – Audited
The Directors present the Lycopodium Limited 2023 Remuneration Report, outlining key aspects of our
remuneration policy and framework, and remuneration awarded this year.
The remuneration report details the key management personnel remuneration arrangements for the consolidated entity,
in accordance with the requirements of the Corporations Act 2001 and its Regulations.
Key management personnel are those persons having authority and responsibility for planning, directing and controlling
the activities of the entity, directly or indirectly, including all directors.
Name
Position
Michael John Caratti
Peter De Leo
Rodney Lloyd Leonard
Bruno Ruggiero
Karl Anthony Cicanese
Steven John Micheil Chadwick
Louise Bower
Justine Campbell
Chairman, Non-executive Director
Managing Director
Non-executive Director
Executive Director
Executive Director
Non-executive Director
Non-executive Director
Company Secretary and Chief Financial Officer
Principles used to Determine the Nature and Amount of Remuneration
The objective of the consolidated entity’s executive reward framework is to ensure reward for performance is competitive
and appropriate for the results delivered. The framework aligns executive reward with the achievement of strategic objectives
and the creation of value for shareholders, and it is considered to conform to the market best practice for the delivery of
reward. The Board of Directors (‘the Board’) ensures that executive reward satisfies the following key criteria for good reward
governance practices:
•
competitiveness and reasonableness
• acceptability to shareholders
• performance linkage / alignment of executive compensation
•
transparency
16
The executive remuneration framework has
three components:
•
Fixed annual remuneration, including
superannuation,
• Service bonus, and
• Equity
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.
Consolidated entity performance and link
to remuneration
Remuneration for certain individuals is directly linked to the
performance of the consolidated entity. A portion of cash
bonus and incentive payments are dependent on defined
earnings per share targets being met. The remaining
portion of the cash bonus and incentive payments are at the
discretion of the Remuneration Committee.
Use of remuneration consultants
During the financial year ended 30 June 2023, the
consolidated entity did not engage any remuneration
consultants for assisting the Remuneration Committee.
Voting and Comment Made at
the Company’s Annual General
Meeting
The remuneration report for the FY2022 financial year
was approved with 98% votes in favor by shareholders
during the AGM. The Company did not receive any
specific feedback at the AGM or throughout the year
on its remuneration practices.
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 additional fees for ad-
hoc services (hourly rate), subsidiary board and committee
attendance, as required.
ASX listing rules require the aggregate Non-executive
Directors’ remuneration be determined periodically by a
general meeting. The most recent determination was at
the Annual General Meeting held on 15 November 2022,
where the shareholders approved a maximum aggregate
remuneration of AUD 639,047.
Directors’ Fees
The current base fees were last reviewed with effect
from 01 July 2022. The fees are inclusive of committee
fees. Details on Directors fees are disclosed under service
agreements on page 19.
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
LYCOPODIUM LIMITED FY2023 FINANCIAL REPORT | 30 JUNE 2023
LYCOPODIUM LIMITED FY2023 FINANCIAL REPORT | 30 JUNE 2023
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Company Performance
The profit after income tax expense and basic earnings per share for the Company for the last five years is as follows:
Revenue ($)
Profit before income tax ($)
Income tax expense ($)
Profit after income tax ($)
Basic EPS (cents)
Basic EPS growth, year on year (%)
Fully franked dividends per share (cents)
Change in share price * ($)
Return on equity (%)
2023
327,571,503
63,276,663
17,718,082
45,558,581
117.72
72.13%
81
4.88
42.83%
2022
232,156,833
38,926,648
12,074,774
26,851,874
68.4
91.60%
54
0.3
28.67%
2021
162,175,648
21,489,381
7,423,134
14,066,247
35.7
20.20%
25
0.64
17.00%
2020
211,134,310
18,450,139
6,773,513
11,676,626
29.7
-28.40%
20
-0.08
14.85%
2019
154,033,409
23,543,752
7,144,537
16,399,215
41.5
-10.90%
30
0.19
20.66%
*calculated as the difference between the closing share price at the start and end of the respective financial years
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
2023
Non-executive Directors
Michael John Caratti
Steven John Micheil
Chadwick
Rodney Lloyd Leonard**
Louise Bower*
Executive Directors
Peter De Leo
Bruno Ruggiero
Karl Anthony Cicanese
Other key management personnel
Justine Campbell
Total key management
personnel
compensation
79,638
95,672
143,041
86,567
714,500
593,480
657,576
504,708
2,875,182
Cash
bonus#
Non-
monetary
benefits
Super-
annuation
-
-
-
-
46,608
37,558
42,083
44,167
170,416
-
-
-
-
9,341
9,341
9,341
9,341
37,364
8,259
2,328
14,916
-
27,500
30,800
25,292
25,292
134,387
Rights
Total
-
-
12,742
-
87,897
98,000
170,699
86,567
86,445
64,586
525,445^
884,394
735,765
1,259,737
41,408
730,626
624,916
3,947,975
Perfor-
mance
related
0.0
0.0
7.5
0.0
15.0
13.9
45.1
13.7
22.8
* Represents remuneration from 15 August 2022 to 30 June 2023
** Payment includes prior year entitlement
^ $450,800 represents 200,000 Loan Funded Shares issued during the year
Details of Remuneration (continued)
Short-term employee benefits
Post-
employment
benefits
Share-
based
payments
Cash salary
and fees
2022
Non-executive Directors
Michael John Caratti
Lawrence Marshall*
Steven John Micheil
Chadwick
Rodney Lloyd Leonard***
Robert Osmetti**
Executive Directors
Peter De Leo
Bruno Ruggiero
Karl Anthony Cicanese
Other key management personnel
Justine Campbell
Total key management
personnel
compensation
74,091
65,966
81,500
118,901
172,630
613,300
501,401
562,932
476,432
2,667,153
Cash
bonus#
Non-
monetary
benefits
Super-
annuation
Rights
Total
Perfor-
mance
related
9,290
6,967
-
-
-
-
-
41,948
33,803
37,875
37,500
151,126
9,290
9,290
9,290
9,290
53,417
7,382
20,625
-
11,811
38,878
27,500
30,800
23,568
23,568
184,132
-
-
-
31,006
-
78,447
59,838
137,305
90,763
93,558
81,500
161,718
211,508
770,485
635,132
770,970
88,199^
394,795
634,989
3,450,623
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
^ $73,500 represents 50,000 Loan Funded Shares issued during the year
Cash bonuses are dependent on meeting defined performance measures. The amount of the bonus is determined having
regard to the satisfaction of performance measures. The maximum bonus values are established at the start of each financial
year and amounts payable are determined in the final month of the financial year by the Remuneration Committee.
Service Agreements
Remuneration and other terms of employment for the Directors and key management personnel are formalised in
employment contracts. Each contract deals with fixed annual remuneration. Other major provisions of the agreements
relating to remuneration are set out below.
All employment contracts with Directors and executives may be terminated by either party with one month’s notice. None of
the Directors or executives are provided with termination benefits.
Name
Michael John Caratti
Chairman and Non-executive Director
Rodney Lloyd Leonard
Non-executive Director
Steven John Micheil Chadwick
Non-executive Director
Louise Bower*
Non-executive Director
Peter De Leo
Managing Director
Bruno Ruggiero
Executive Director
Karl Anthony Cicanese
Executive Director
Justine Campbell
Company Secretary and Chief Financial Officer
*Appointed 15 August 2022
Term of
agreement
No fixed term Directors fee of $88,000 p.a.
Fixed Remuneration including superannuation*
No fixed term
No fixed term
No fixed term
No fixed term
No fixed term
No fixed term
No fixed term
Fixed hourly rate of $253.26
Directors fee of $88,000 p.a.
Fixed hourly rate of $253.26
Directors fee of $88,000 p.a.
Fixed hourly rate of $253.26
Directors fee of $88,000 p.a.
$654,000 p.a.
Directors fee of $88,000 p.a.
$536,280 p.a.
Directors fee of $88,000 p.a.
$594,868 p.a.
Directors fee of $88,000 p.a.
$530,000 p.a.
18
LYCOPODIUM LIMITED FY2023 FINANCIAL REPORT | 30 JUNE 2023
LYCOPODIUM LIMITED FY2023 FINANCIAL REPORT | 30 JUNE 2023
19
Corporate Governance StatementFinancial ReportDirectors’ DeclarationIndependent Auditor’s ReportShareholder InformationCorporate Directory
Directors’ Report
Directors’ Report
D
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Share-Based Compensation
Incentive Performance Rights Plan
Performance rights were granted to certain Executive Directors as approved at the Annual General Meeting on
15 November 2022.
Loan Funded Share Acquisition Plan
On 03 October 2022, the Company issued limited recourse loan funded shares to an Executive Director totalling 200,000
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 rights over ordinary shares on issue is set out in note 37 to the financial statements.
The tables below show 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.
Balance at
start of the
year
2023
Directors of Lycopodium Limited
Peter De Leo
Rodney Lloyd Leonard
Bruno Ruggiero
Karl Anthony Cicanese
Other key management personnel
Justine Campbell
63,549
23,715
49,063
102,568
17,611
Granted as
compen-
sation (*)
Exercised
Other
changes
Balance at
end of the
year
Vested and
exer-
cisable
Unvested
2023
18,853 26,265
23,715
21,165
69,679
-
13,391
17,003
18,423
-
-
-
-
-
-
56,137
-
41,289
49,892
36,034
-
-
-
-
-
56,137
-
41,289
49,892
36,034
(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.
2023
Directors of Lycopodium Limited
Michael John Caratti
Peter De Leo
Rodney Lloyd Leonard
Bruno Ruggiero
Steven John Micheil Chadwick
Karl Anthony Cicanese
Received
during
the year
on the
exercise of
rights
Other
changes
during the
year
Balance
at end of
the year
-
26,265
23,715
21,165
-
69,679
-
-
(100,000)
(200,000)
-
130,321
9,109,367
915,036
902,930
2,988,497
19,657
200,200
Balance
at start of
the year
9,109,367
888,771
979,215
3,167,332
19,657
200
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 (2022: 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.
*Granted under the Incentive Performance Rights Plan. Refer to Note 37.
The terms and conditions of each grant of rights over ordinary shares affecting remuneration of Directors and other key
management personnel in this financial year or future reporting years are as follows:
Name
Directors of Lycopodium Limited
Peter De Leo
Bruno Ruggiero
Karl Anthony Cicanese
Other key management personnel
Justine Campbell
Number
of rights
granted
Grant date
Vesting
date and
exercisable
date
Expiry
date
Exercise
price
18,853
13,391
17,003
16-Nov-22
16-Nov-22
16-Nov-22
15-Nov-25
15-Nov-25
15-Nov-25
15-Nov-27
15-Nov-27
15-Nov-27
18,423
16-Nov-22
15-Nov-25
15-Nov-27
-
-
-
-
Fair value
per right
at grant
date
$4.56
$4.56
$4.56
$4.56
20
LYCOPODIUM LIMITED FY2023 FINANCIAL REPORT | 30 JUNE 2023
LYCOPODIUM LIMITED FY2023 FINANCIAL REPORT | 30 JUNE 2023
21
Corporate Governance StatementFinancial ReportDirectors’ DeclarationIndependent Auditor’s ReportShareholder InformationCorporate Directory
Directors’ Report
Directors’ Report
D
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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
21 August 2023
Shares Under Performance Rights
Unissued ordinary shares of Lycopodium Limited at the date of this report are as follows:
Date performance
rights issued
11-December-2020
19-November-2021
16-November-2022
Expiry date
10 December 2025
18 November 2026
15 November 2027
Issue price
of shares
$0.00
$0.00
$0.00
Number
86,639
127,139
194,355
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.
22
LYCOPODIUM LIMITED FY2023 FINANCIAL REPORT | 30 JUNE 2023
LYCOPODIUM LIMITED FY2023 FINANCIAL REPORT | 30 JUNE 2023
23
Corporate Governance StatementFinancial ReportDirectors’ DeclarationIndependent Auditor’s ReportShareholder InformationCorporate Directory
Directors’ Report
Auditor’s Independence
Declaration
Motheo Copper Project, Botswana
D
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’
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AUDITOR’S INDEPENDENCE DECLARATION
As lead auditor for the audit of the financial report of Lycopodium Limited for the year ended 30 June 2023, 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: 21 August 2023
JAMES KOMNINOS
Partner
24
LYCOPODIUM LIMITED FY2023 FINANCIAL REPORT | 30 JUNE 2023
LYCOPODIUM LIMITED FY2023 FINANCIAL REPORT | 30 JUNE 2023
25
Corporate Governance StatementFinancial ReportDirectors’ DeclarationIndependent Auditor’s ReportShareholder InformationCorporate Directory
Corporate Governance
Statement
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
S
t
a
t
e
m
e
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C
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G
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a
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c
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Talison Mine Services Area, Western Australia
26
LYCOPODIUM LIMITED FY2023 FINANCIAL REPORT | 30 JUNE 2023
LYCOPODIUM LIMITED FY2023 FINANCIAL REPORT | 30 JUNE 2023
27
Directors’ ReportFinancial ReportDirectors’ DeclarationIndependent Auditor’s ReportShareholder InformationCorporate Directory
FY23
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
29
30
31
32
33
The financial statements cover Lycopodium Limited as a consolidated
entity consisting of Lycopodium Limited and the entities it controlled
at the end of, or during, the year. The financial statements are presented
in Australian dollars, which is Lycopodium Limited’s functional and
presentation currency.
Lycopodium Limited is a listed public company limited by shares,
incorporated and domiciled in Australia. Its registered office and
principal place of business is:
Level 5, 1 Adelaide Terrace
East Perth, Western Australia 6004
A description of the nature of the consolidated entity’s operations and
its principal activities are included in the Directors’ Report, which is not
part of the financial statements.
The financial statements were authorised for issue, in accordance with a
resolution of Directors, on 21 August 2023. The Directors have the power
to amend and reissue the financial statements.
Financial Report
Consolidated Statement of Profit or Loss
and Other Comprehensive Income
For the Year Ended 30 June 2023
Revenue from Continuing operations
Revenue from contracts with customers
Interest income
Other income
Revenue
Employee benefits expense
Depreciation and amortisation expense
Project expenses
Equipment and materials
Contractors
Occupancy expense
Other expenses
Warranty provision (expenses)/reversal
Finance costs
Share of net (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
F
i
n
a
n
c
i
a
l
R
e
p
o
r
t
Notes
2023
$
2022
$
5(a)
323,879,383
228,711,210
1,650,486
563,484
5(c)
2,041,634
2,882,139
327,571,503
232,156,833
(113,617,410)
(85,216,446)
6
(6,366,509)
(5,621,299)
21
6
17
7
(7,233,167)
(3,709,202)
(39,923,019)
(45,365,867)
(76,394,095)
(46,421,321)
(2,150,012)
(1,760,674)
(14,393,592)
(13,353,492)
(5,440,853)
9,305,489
(839,276)
(886,201)
2,063,093
(201,172)
63,276,663
38,926,648
(17,718,082)
(12,074,774)
45,558,581
26,851,874
46,780,431
27,177,701
(1,221,850)
(325,827)
45,558,581
26,851,874
(3,696,794)
(817,656)
41,861,787
26,034,218
40,268,078
26,030,215
1,593,709
4,003
41,861,787
26,034,218
Earnings per share for profit attributable to the ordinary equity holders of the Company:
Basic earnings per share
Diluted earnings per share
Notes
Cents
Cents
36(a)
36(b)
117.72
117.72
68.40
68.40
The above statement of profit or loss and other comprehensive income should be read in conjunction with the accompanying notes
28
LYCOPODIUM LIMITED FY2023 FINANCIAL REPORT | 30 JUNE 2023
LYCOPODIUM LIMITED FY2023 FINANCIAL REPORT | 30 JUNE 2023
29
Directors’ ReportCorporate Governance StatementDirectors’ DeclarationIndependent Auditor’s ReportShareholder InformationCorporate Directory
Financial Report
Consolidated Statement of
Financial Position
Financial Report
Consolidated Statement of
Changes in Equity
As at 30 June 2023
For the Year Ended 30 June 2023
ASSETS
Current assets
Cash and cash equivalents
Trade and other receivables
Inventories
Derivative assets
Other current assets
Total current assets
Non-current assets
Property, plant and equipment
Right-of-use assets
Intangible assets
Deferred tax assets
Financial assets measured at fair value through profit or loss
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
Issued capital
Reserves
Retained earnings
Equity attributable to the owners of Lycopodium Limited
Non-controlling interests
Total equity
The above statement of financial position should be read in conjunction with the accompanying notes
Notes
2023
$
2022
$
8
9
10
16(c)
11
12
13
14
15
16(a)
17
18
19
5(b)
16(b)
16(a)
16(c)
20
21
16(b)
23
16(a)
24
25
26
27
82,412,067
100,946,619
87,086,807
275,629
31,386
67,111,605
347,627
-
7,308,678
5,518,861
177,114,567
173,924,712
8,512,811
6,897,962
13,247,239
13,687,667
6,447,888
6,524,274
3,709,104
12,621,890
3,037,485
3,809,495
-
2,471,669
2,768,361
42,459
38,764,022
45,014,282
215,878,589
218,938,994
28,808,966
26,024,079
25,166,322
43,468,918
680,136
841,470
4,494,167
3,426,992
12,909,805
18,960,637
-
9,221,812
9,578,601
536,081
8,869,891
4,087,367
90,859,809
106,215,435
-
1,526,707
10,527,166
12,053,873
683,317
671,369
11,693,453
13,048,139
102,913,682
119,263,574
112,964,907
99,675,420
18,551,357
19,344,160
(3,572,691)
99,663,882
(337,504)
81,496,413
114,642,548
100,503,069
(1,677,641)
(827,649)
112,964,907
99,675,420
F
i
n
a
n
c
i
a
l
R
e
p
o
r
t
Issued
Capital
$
Retained
earnings
$
Notes
Foreign
currency
translation
reserve
$
Share-
based
payment
reserve
$
Non-con-
trolling
interests
$
Total
equity
$
Balance at 1 July 2021
Profit for the year
Other comprehensive loss
Total comprehensive income for
the year
Transactions with owners in
their capacity as owners:
Foreign currency translation with
non-controlling interest
Dividends provided for or paid
Purchase of share under
employee share trust
Performance rights - value of
rights
Loan shares to senior
management
Loan shares – value of rights
Tax effect of transfer to cash to
employee share trust
Exercise of performance rights
28
24
25
24
25
25
25
20,854,574
67,758,814
(852,957)
623,021
(709,630)
87,673,822
26,851,874
-
-
(817,656)
26,851,874
(817,656)
-
-
-
-
-
(889,693)
-
(901,828)
-
-
281,107
-
(13,114,275)
-
-
-
-
-
-
(1,510,414)
(13,114,275)
-
-
-
-
-
-
487,419
-
220,500
283,276
(281,107)
(325,827)
26,526,047
-
(817,656)
(325,827)
25,708,391
207,808
207,808
-
-
-
-
-
-
-
(13,114,275)
(889,693)
487,419
(901,828)
220,500
283,276
-
710,088
207,808
(13,706,793)
-
-
-
-
-
-
-
-
-
Balance at 30 June 2022
19,344,160
81,496,413
(1,670,613)
1,333,109
(827,649)
99,675,420
Balance at 1 July 2022
Profit for the year
Other comprehensive loss
Total comprehensive income for
the year
Transactions with owners in
their capacity as owners:
Foreign currency translation with
non-controlling interest
Dividends provided for or paid
Purchase of share under
employee share trust
Performance rights - value of
rights
Loan shares to senior
management
Loan shares – value of rights
Tax effect of transfer to cash to
employee share trust
Exercise of performance rights
28
24
25
24
25
25
25
19,344,160
-
-
81,496,413
46,780,431
-
(1,670,613)
-
(3,696,794)
1,333,109
-
-
(827,649)
(1,221,850)
-
99,675,420
45,558,581
(3,696,794)
-
46,780,431
(3,696,794)
-
(1,221,850)
41,861,787
-
-
-
(28,612,962)
(142,391)
-
(1,243,499)
-
-
593,087
-
-
-
-
-
-
(792,803)
(28,612,962)
-
-
-
-
-
-
-
-
-
-
-
-
574,275
-
450,800
29,619
(593,087)
371,858
371,858
-
-
-
-
-
-
-
(28,612,962)
(142,391)
574,275
(1,243,499)
450,800
29,619
-
461,607
371,858
(28,572,300)
Balance at 30 June 2023
18,551,357
99,663,882
(5,367,407)
1,794,716
(1,677,641)
112,964,907
The above statement of changes in equity should be read in conjunction with the accompanying notes
30
LYCOPODIUM LIMITED FY2023 FINANCIAL REPORT | 30 JUNE 2023
LYCOPODIUM LIMITED FY2023 FINANCIAL REPORT | 30 JUNE 2023
31
Directors’ ReportCorporate Governance StatementDirectors’ DeclarationIndependent Auditor’s ReportShareholder InformationCorporate Directory
Financial Report
Consolidated Statement of
Cash Flows
Financial Report
Notes to the
Financial Statements
For the Year Ended 30 June 2023
As of 30 June 2023
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
Notes
2023
$
2022
$
283,781,365
236,975,004
(253,820,736)
(186,499,411)
29,960,629
50,475,593
1,650,486
563,484
(75,555)
(86,988)
(12,763,586)
(10,177,435)
Net cash inflow/(outflow) from operating activities
35
18,771,974
40,774,654
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 financial assets measured at fair value through profit or loss
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
Repayment of lease liabilities
Dividends paid
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
12
14
1,021,959
900,774
(4,353,037)
(3,947,067)
-
(59,312)
1,416
(6,219)
(56,433)
(20,000,000)
20,000
24,000,000
-
607,038
(3,426,823)
1,555,942
-
2,648,960
-
-
(3,493,610)
(574,679)
-
-
-
-
(365,076)
(1,015,250)
(4,229,643)
(3,804,194)
(28,612,962)
(13,114,275)
(34,052,331)
(18,508,398)
(18,707,180)
100,946,619
172,628
23,822,198
76,841,139
283,282
Cash and cash equivalents at the end of financial year
8
82,412,067
100,946,619
The above statement of cash flows should be read in conjunction with the accompanying notes
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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.
(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
Subsidiaries
(i)
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.
(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.
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Financial Report
Notes to the
Financial Statements
As of 30 June 2023
(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.
Financial Report
Notes to the
Financial Statements
As of 30 June 2023
(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
To determine whether to recognise revenue, the consolidated entity follows a 5-step process:
(1) Identifying the contract with a customer
(2) Identifying the performance obligations
(3) Determining the transaction price
(4) Allocating the transaction price to the performance obligations
(5) Recognising revenue when/as performance obligation(s) are satisfied
For work being performed in the completion of contracts with fixed prices, the customer controls the assets as it is created or
enhanced. Progress towards completion of the contract is measured according to the proportion of contract costs incurred
for work performed to date relative to the estimate total contract costs.
When it is probable that total contract costs will exceed total contract revenue, the expected loss is recognised as an expense
immediately.
Where recognised revenues exceed progress billings, the surplus is shown in Contract Assets. For contracts where progress
billings exceed recognised revenues, the surplus is shown as Contract Liabilities.
Certain customer contracts are man-hours and expense based. In these circumstances, revenue is recognised over time as
the 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
Interest revenue is recognised on an accrual basis.
Dividend
Dividend income is recognised when the dividend is declared.
Rental income
Rental income is recognised on a straight line basis over the term of the operating lease.
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Directors’ ReportCorporate Governance StatementDirectors’ DeclarationIndependent Auditor’s ReportShareholder InformationCorporate Directory
Financial Report
Notes to the
Financial Statements
As of 30 June 2023
(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.
(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.
(f) Income Tax
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.
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Financial Report
Notes to the
Financial Statements
As of 30 June 2023
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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Directors’ ReportCorporate Governance StatementDirectors’ DeclarationIndependent Auditor’s ReportShareholder InformationCorporate Directory
Financial Report
Notes to the
Financial Statements
Financial Report
Notes to the
Financial Statements
As of 30 June 2023
As of 30 June 2023
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 and other 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 ‘other
expenses’ in the profit and loss.
Other receivables are recognised at amortised cost, less any allowance for expected credit losses.
(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.
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(n) Customer Acquisition Costs
Customer acquisition costs are capitalised as an asset where such costs are incremental to obtaining a contract with a
customer and are expected to be recovered. Customer acquisition costs are amortised on a straight-line basis over the term
of the contract.
Costs to obtain a contract that would have been incurred regardless of whether the contract was obtained or which are not
otherwise recoverable from a customer are expensed as incurred to profit or loss. Incremental costs of obtaining a contract
where the contract term is less than one year is immediately expensed to profit or loss.
(o) Customer Fulfilment Costs
Customer fulfilment costs are capitalised as an asset when all the following are met: (i) the costs relate directly to the contract
or specifically identifiable proposed contract; (ii) the costs generate or enhance resources of the consolidated entity that will
be used to satisfy future performance obligations; and (iii) the costs are expected to be recovered. Customer fulfilment costs
are amortised on a straight-line basis over the term of the contract.
(p) Inventories
Raw materials, work in progress and finished goods are stated at the lower of cost and net realisable value on a ‘first in first
out’ basis. Cost comprises of direct materials and delivery costs, direct labour, import duties and other taxes, an appropriate
proportion of variable and fixed overhead expenditure based on normal operating capacity and where applicable, transfers
from cash flow hedging reserves in equity. Costs of purchased inventory are determined after deducting rebates and
discounts received or receivable.
Stock in transit is stated at the lower of cost and net realisable value. Cost comprises of purchase and delivery costs, net of
rebates and discounts received or receivable.
Net realisable value is the estimated selling price in the ordinary course of business less the estimated costs of completion
and the estimated costs necessary to make the sale.
(q) Non-Derivative Financial Assets
Classification
(i)
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 cashflows. 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.
(ii) Measurement
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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Directors’ ReportCorporate Governance StatementDirectors’ DeclarationIndependent Auditor’s ReportShareholder InformationCorporate Directory
Financial Report
Notes to the
Financial Statements
Financial Report
Notes to the
Financial Statements
As of 30 June 2023
As of 30 June 2023
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.
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.
(s) 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.
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(t) 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.
(u) 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.
(v) 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.
(w) 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 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:
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Directors’ ReportCorporate Governance StatementDirectors’ DeclarationIndependent Auditor’s ReportShareholder InformationCorporate Directory
Financial Report
Notes to the
Financial Statements
Financial Report
Notes to the
Financial Statements
As of 30 June 2023
As of 30 June 2023
•
•
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.
(x) 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:
Plant and equipment
Vehicles
3 - 10 years
5 - 7 years
Furniture, fittings and equipment
3 - 8 years
Leasehold improvements
3 - 6 years
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.
(y) Intangible Assets
(i) Goodwill
Goodwill is measured as described in note 1(h). Goodwill on acquisitions of subsidiaries is included in intangible assets.
Goodwill is not amortised but it is tested for impairment annually, or more frequently if events or changes in circumstances
indicate that it might be impaired, and is carried at cost less accumulated impairment losses. Gains and losses on the disposal
of an entity include the carrying amount of goodwill relating to the entity sold.
Goodwill is allocated to cash-generating units for the purpose of impairment testing. The allocation is made to those cash-
generating units or groups of cash-generating units that are expected to benefit from the business combination in which the
goodwill arose, identified according to operating segments (note 4).
Software
(ii)
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.
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(z) 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.
(aa) 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.
(ab) 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.
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.
(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 rights.
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 rights, the vesting and performance criteria, the impact of dilution, the non-tradeable
nature of the rights, 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 rights.
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Financial Report
Notes to the
Financial Statements
As of 30 June 2023
(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.
(v) Defined Contribution Superannuation Expense
Contributions to defined contribution superannuation plans are expensed in the period in which they are incurred.
(ac) Issued Capital
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.
(ad) Dividends
OProvision 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.
(ae) Earnings Per Share
Basic Earnings Per Share
(i)
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.
(af) 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
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Notes to the
Financial Statements
As of 30 June 2023
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.
Commitments and contingencies are disclosed net of the amount of GST recoverable from, or payable to, the tax authority.
(ag) 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.
(ah) 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.
(ai) 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.
(ii) Share Based Payments
The grant by the Company of rights 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.
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Directors’ ReportCorporate Governance StatementDirectors’ DeclarationIndependent Auditor’s ReportShareholder InformationCorporate Directory
Financial Report
Notes to the
Financial Statements
Financial Report
Notes to the
Financial Statements
As of 30 June 2023
As of 30 June 2023
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-Jun-23
30-Jun-22
USD $
9,709,240
4,403,429
-
-
14,112,669
CAD $
2,899,858
15,673,450
276,180
(9,376,094)
9,473,394
USD $
33,482,749
3,072,668
-
(2,765,401)
33,790,016
CAD $
12,528,908
3,725,417
191,108
(5,218,615)
11,226,818
Sensitivity
Based on the financial instruments held at 30 June 2023, 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 $1,411,267 higher/$1,411,267 lower (2022: $3,379,002 higher/$3,379,002 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 Australia dollar/US dollar exchange rates in 2023 than 2022 due to forward contract hedge entered by
the consolidated entity.
Based on the financial instruments held at 30 June 2023, 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 $947,339 higher/$947,339 lower (2022: $1,122,682 higher/$1,122,682 lower), mainly as a result of foreign
exchange gains/losses on translation of Canadian dollars 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 2023, 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 $275,208 lower/higher (2022: $326,965 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:
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Trade and other receivables
Deposits held with banks (note 11)
2023
$
82,412,067
87,086,807
1,007,348
170,506,222
2022
$
100,946,619
67,111,605
591,844
168,650,068
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.
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Directors’ ReportCorporate Governance StatementDirectors’ DeclarationIndependent Auditor’s ReportShareholder InformationCorporate Directory
Financial Report
Notes to the
Financial Statements
Financial Report
Notes to the
Financial Statements
As of 30 June 2023
As of 30 June 2023
(c) Liquidity Risk
Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of funding
through an adequate amount of committed credit facilities. The 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
2023
$
5,683,317
10,811,169
64,073,021
80,567,507
2022
$
6,385,136
9,748,669
28,277,568
44,411,373
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.
Consolidated –
At 30 June 2023
Non-derivatives
Non-interest bearing
Trade Payables
Interest bearing
Finance leases
Lease Liabilities
Borrowings
Consolidated –
At 30 June 2022
Non-derivatives
Non-interest bearing
Trade Payables
Interest bearing
Finance leases
Lease Liabilities
Borrowings
Weighted
average
interest rate
%
1 year or
less
$
Between
1 and 2
years
$
Between
2 and 5
years
$
Over 5
years
$
Total
contractual
cash flows
$
Carrying
amount
liabilities
$
23,776,529
-
-
-
23,776,529
23,776,529
4.41%
5.36%
2.49%
25,736
4,458,515
692,568
28,953,348
36,146
4,015,946
-
4,052,092
-
4,854,792
-
-
3,780,125
-
4,854,792 3,780,125
61,883
17,109,378
692,568
41,640,357
60,515
15,021,333
683,316
39,541,693
Weighted
average
interest rate
%
1 year or
less
$
Between
1 and 2
years
$
Between
2 and 5
years
$
Over 5
years
$
Total
contractual
cash flows
$
Carrying
amount
liabilities
$
21,259,240
-
-
-
21,259,240
21,259,240
4.49%
5.51%
2.49%
39,518
4,092,226
692,568
26,083,552
25,736
3,455,115
692,568
4,173,419
36,146
7,179,753
-
-
2,295,125
-
7,215,899 2,295,125
101,400
17,022,219
1,385,136
39,767,995
97,316
15,120,444
1,349,846
37,826,846
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 2023.
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.
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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(aa), 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 experience and best available information.
Income tax
(iv)
The consolidated entity is subject to income taxes in the jurisdictions in which it operates. Significant judgement is required
in determining the provision for income tax. There are many transactions and calculations undertaken during the ordinary
course of business for which the ultimate tax determination is uncertain. The consolidated entity recognises liabilities for
anticipated tax audit issues based on the consolidated entity’s current understanding of the tax law. Where the final tax
outcome of these matters is different from the carrying amounts, such differences will impact the current and deferred tax
provisions in the period in which such determination is made.
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 (2022: 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.
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49
Directors’ Report Corporate Governance StatementDirectors’ DeclarationIndependent Auditor’s ReportShareholder InformationCorporate Directory
Financial Report
Notes to the
Financial Statements
Financial Report
Notes to the
Financial Statements
As of 30 June 2023
As of 30 June 2023
(b) Segment Information Provided to the Board of Directors
(b) Segment Information Provided to the Board of Directors (continued)
Asia
Pacific
$
175,898,294
(991,285)
174,907,009
Minerals
North
America
$
82,082,105
(41,433,120)
40,648,985
Project
Services -
Africa
$
11,314,460
0
11,314,460
Process
Industries
$
12,038,070
(122,217)
11,915,853
Africa
$
62,699,145
-
62,699,145
Total
Other
$
$
383,354,434
39,322,360
(16,928,429)
(59,475,051)
22,393,931 323,879,383
33,529
2,271
149,580
132,014
816,084
8,408
0
0
1,939
0
649,354
1,898,941
1,650,486
2,041,634
327,571,503
15,861,075
13,964,950
16,156,984
2,571,700
4,011,035
8,702,237
61,267,981
56,843,110
36,063,415
42,945,328
13,338,237
7,511,361
21,924,153
(3,774,804)
2,063,093
3,720,393
63,276,663
(17,718,082)
45,558,581
178,625,604
(19,971,686)
6,126,228
0
1,780,133
10,022,611
9,572,469
29,723,230
215,878,589
89,978
2,445,551
164,164
2,323
1,440
97,405
2,800,861
48,043,731
25,881,746
24,886,810
10,284,836
3,784,656
5,816,101
118,697,880
(19,956,177)
346,264
(11,169,695)
10,920,332
4,075,078
102,913,682
2022
Total segment revenue
Inter-segment revenue
Revenue from external
customers
Interest income
Other income
Total revenue
Segement Profit / (Loss)
before tax
Unallocated:
Depreciation and
amortisation
Share of net (loss)/profit
of associates and joint
ventures accounted for
using the equity method
Other unallocated
Profit / (Loss) before tax
Income tax benefit /
(expense)
Profit / (Loss) after tax
Total 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
Total assets includes:
Additions to non-current
assets (other than financial
assets and deferred tax)
Total segment liabilities
Intersegment eliminations
Unallocated Segment
Assets:
Trade and other payables
Provision for income tax
Lease liabilities
Other unallocated
segment liabilities
Total liabilities as per the
consolidated balance
sheet
2023
Total segment revenue
Inter-segment revenue
Revenue from external
customers
Interest income
Other income
Total revenue
Segment Profit / (Loss)
before tax
Unallocated:
Depreciation and
amortisation
Share of net (loss)/profit
of associates and joint
ventures accounted for
using the equity method
Other unallocated
Profit / (Loss) before tax
Income tax benefit /
(expense)
Profit / (Loss) after tax
Total 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
Total assets includes:
Additions to non-current
assets (other than financial
assets and deferred tax)
Total segment liabilities
Intersegment eliminations
Unallocated Segment
Liabilities:
Trade and other payables
Provision for income tax
Lease liabilities
Other unallocated
segment liabilities
Total liabilities as per the
consolidated balance
sheet
50
Asia
Pacific
$
104,402,611
(1,151,598)
103,251,013
Minerals
North
America
$
51,006,233
(3,470,366)
47,535,867
Project
Services -
Africa
$
7,269,200
0
7,269,200
Africa
$
42,055,884
-
42,055,884
Process
Industries
$
11,653,150
(722,281)
10,930,869
Other
$
28,596,862
(10,928,485)
17,668,377
23,854
150,330
4,076
145,108
361,884
96,710
0
0
500
226
173,170
2,489,766
Total
$
244,983,940
(16,272,730)
228,711,210
563,484
2,882,139
232,156,833
28,432,069
2,420,380
7,987,780
1,611,640
2,597,395
2,734,374
45,783,638
F
i
n
a
n
c
i
a
l
R
e
p
o
r
t
45,293,323
63,543,838
32,411,302
10,037,668
10,742,081
17,312,406
(2,914,328)
(201,172)
(3,741,490)
38,926,648
(12,074,774)
26,851,874
179,340,618
(11,298,480)
6,126,228
0
16,931,895
6,628,598
10,656,223
10,553,911
218,938,994
68,245
46,246
542,644
40,118
69,760
284,818
1,051,831
25,091,989
57,062,671
15,936,810
8,275,800
6,816,515
6,830,478
120,014,264
(11,304,983)
1,677,014
(5,219,734)
11,751,152
2,345,860
119,263,574
51
LYCOPODIUM LIMITED FY2023 FINANCIAL REPORT | 30 JUNE 2023
LYCOPODIUM LIMITED FY2023 FINANCIAL REPORT | 30 JUNE 2023
Directors’ Report Corporate Governance StatementDirectors’ DeclarationIndependent Auditor’s ReportShareholder InformationCorporate Directory
Financial Report
Notes to the
Financial Statements
As of 30 June 2023
(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 $123,004,383 (2022:
$63,718,954), and the total of revenue from external customers from other countries is $204,567,120 (2022: $164,372,290).
Segment revenues are allocated based on the country in which the customer is located. However, it is practically difficult to
determine revenue as per the domicile of external customers.
Revenues of approximately $73,238,453 (2022: 67,250,491) are derived from the top 3 customers. These revenues are
attributable to the Minerals segment.
5. REVENUE
(a) Disaggregation of Revenue from Contracts with Customers
Engineering
& related
services
$
207,465,353
11,314,460
11,915,853
22,393,931
253,089,597
2023
Construction
contracts
$
70,789,786
-
-
-
70,789,786
Engineering
& related
services
$
138,822,883
7,269,200
10,930,869
16,886,416
173,909,368
2022
Construction
contracts
$
54,801,842
-
-
-
54,801,842
Total
$
278,255,139
11,314,460
11,915,853
22,393,931
323,879,383
Total
$
193,624,725
7,269,200
10,930,869
16,886,416
228,711,210
Minerals
Project Services - Africa
Process Industries
Other
Total revenue
Timing of Revenue : All revenue from contracts with customers are transferred over time.
(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
2023
$
-
-
-
25,166,322
25,166,322
2022
$
-
-
29,337,296
14,131,622
43,468,918
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 2024.
(c) Other Income
Profit on sale of shares
Net Fair value gain on financial instruments
Rental income
Sundry income
Total other income
2023
$
-
1,133,284
356,417
551,933
2,041,634
2022
$
435,957
1,366,747
548,715
530,720
2,882,139
Financial Report
Notes to the
Financial Statements
As of 30 June 2023
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 Cost
Share based payments
Defined contribution superannuation expense
INCOME TAX EXPENSE
7.
(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/(decrease) in deferred tax assets (note 15)
Increase/(decrease) in deferred tax liabilities (note 22)
2023
$
2022
$
1,608,250
693,840
35,454
22,054
3,846,743
160,168
6,366,509
1,070,109
604,217
19,868
22,053
3,721,586
183,466
5,621,299
(2,008,357)
(773,317)
75,257
764,019
839,276
1,025,075
5,511,094
86,988
799,213
886,201
707,919
4,250,413
2023
$
19,246,329
8,912,786
(10,712,756)
271,723
17,718,082
2022
$
18,158,343
(6,432,440)
114,137
234,734
12,074,774
10,140,732
(1,227,946)
8,912,786
(6,006,859)
(425,581)
(6,432,440)
(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% (2022: 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
Others
Total income tax expense
2023
$
63,276,663
18,982,999
2022
$
38,926,648
11,677,994
346,281
161,009
224,762
19,715,051
(897,980)
(706,300)
(610,817)
(618,928)
4,328
832,728
17,718,082
212,376
(155,968)
671,599
12,406,001
228,664
(318,495)
(127,420)
(113,975)
-
12,074,775
52
LYCOPODIUM LIMITED FY2023 FINANCIAL REPORT | 30 JUNE 2023
LYCOPODIUM LIMITED FY2023 FINANCIAL REPORT | 30 JUNE 2023
53
F
i
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Directors’ Report Corporate Governance StatementDirectors’ DeclarationIndependent Auditor’s ReportShareholder InformationCorporate Directory
Financial Report
Notes to the
Financial Statements
Financial Report
Notes to the
Financial Statements
As of 30 June 2023
As of 30 June 2023
(c) Tax Consolidation
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
2022
$
100,946,619
2023
$
82,412,067
Cash at bank and in hand
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.
9. CURRENT ASSETS - TRADE AND OTHER RECEIVABLES
Trade receivables
Allowance for expected credit loss (a)
GST and other receivables
Cash advanced to employees
Loan to joint ventures
2023
$
68,455,295
(760,685)
67,694,610
19,247,258
88,506
56,433
19,392,197
87,086,807
2022
$
50,695,024
(1,029,030)
49,665,994
17,322,655
102,956
20,000
17,445,611
67,111,605
(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
Receivables written off during the year as uncollectible
Unused amount reversed
Exchange difference
At 30 June
2023
$
1,029,030
-
6,910
(291,849)
16,594
760,685
2022
$
1,185,825
-
(185,922)
29,127
1,029,030
The other classes within trade and other receivables do not contain impaired assets.
The expected credit loss for trade receivables as at 30 June 2023 and 30 June 2022 are as follows:
30 June 2023
Expected credit loss rate
Gross carrying amount
Lifetime expected credit loss
30 June 2022
Expected credit loss rate
Gross carrying amount
Lifetime expected credit loss
More than
30 days past
due
$
More than
60 days past
due
$
0%
4,405,211
-
0%
1,453,455
-
More than
90 days past
due
$
40.4%
1,882,695
760,685
Current
$
0%
60,713,934
-
Current
$
0%
29,302,087
-
More than
30 days past
due
$
More than
60 days past
due
$
0%
12,968,225
-
0%
5,405,791
-
More than
90 days past
due
$
34.1%
3,018,921
1,029,030
Total
$
-
68,455,295
760,685
Total
$
-
50,695,024
1,029,030
F
i
n
a
n
c
i
a
l
R
e
p
o
r
t
(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.
10. CURRENT ASSETS – INVENTORIES
Consumables
2023
$
275,629
2022
$
347,627
11. CURRENT ASSETS - OTHER CURRENT ASSETS
Prepayments
Deposits with licensed banks*
Other current assets
2023
$
4,702,178
1,007,348
1,599,152
7,308,678
2022
$
3,629,212
591,844
1,297,805
5,518,861
* Deposit with licensed banks as security/bond on the various properties leased by the consolidated entity.
54
LYCOPODIUM LIMITED FY2023 FINANCIAL REPORT | 30 JUNE 2023
LYCOPODIUM LIMITED FY2023 FINANCIAL REPORT | 30 JUNE 2023
55
Directors’ Report Corporate Governance StatementDirectors’ DeclarationIndependent Auditor’s ReportShareholder InformationCorporate Directory
Financial Report
Notes to the
Financial Statements
Financial Report
Notes to the
Financial Statements
As of 30 June 2023
As of 30 June 2023
12. NON-CURRENT ASSETS - PROPERTY, PLANT
AND EQUIPMENT
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
Year ended 30 June 2023
Opening net book amount
Additions
Disposals
Depreciation charge
Transfers
Exchange differences
Closing net book amount
At 30 June 2023
Cost
Accumulated depreciation
Net book amount
Fixtures
and fittings
$
3,678,870
1,732,100
(2,122)
(1,070,109)
(85,447)
(47,748)
4,205,544
Motor
vehicles
$
137,173
130,709
(2,492)
(19,868)
(7,907)
(12,790)
224,825
Leasehold
improve-
ments
$
752,896
2,227,857
-
(604,217)
-
10,292
2,386,828
14,220,357
(10,014,813)
4,205,544
374,187
(149,362)
224,825
3,855,145
(1,468,317)
2,386,828
Fixtures
and fittings
$
4,205,543
2,750,336
(797)
(1,608,249)
-
(350,957)
4,995,877
16,222,557
(11,226,680)
4,995,877
Motor
vehicles
$
224,825
65,275
-
(35,454)
-
(23,093)
231,553
405,542
(173,991)
231,553
Leasehold
improve-
ments
$
2,386,828
1,537,424
-
(693,840)
-
(3,742)
3,226,670
5,406,497
(2,179,827)
3,226,670
Leased
plant and
equipment
$
102,818
-
-
(22,053)
-
-
80,765
137,738
(56,973)
80,765
Leased
plant and
equipment
$
80,765
-
-
(22,054)
-
0
58,711
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
Total
$
6,897,962
4,353,035
(797)
(2,359,597)
-
(377,792)
8,512,811
137,738
(79,027)
58,711
22,172,335
(13,659,525)
8,512,811
13. NON-CURRENT ASSETS - RIGHT-OF-USE ASSETS
Land and buildings – right-of-use
Accumulated depreciation
Net book amount
Movements:
Right-of-Use Assets
Opening balance 1 July
Additions
Depreciation
Currency translation differences during the year
Balance 30 June
Right of Use Assets includes Office space and Vehicle lease.
Additions to the right-of-use assets during the year were $3,458,302
2023
$
23,135,651
(9,888,412)
13,247,239
2022
$
20,656,734
(6,969,067)
13,687,667
2023
$
2022
$
13,687,667
3,458,302
(3,846,743)
(51,987)
13,247,239
14,925,280
2,518,829
(3,721,586)
(34,856)
13,687,667
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 2022
Opening net book amount
Additions
Impairment
Amortisation charge *
Exchange differences
Closing net book amount
At 30 June 2022
Cost
Accumulated amortisation
Net book amount
Year ended 30 June 2023
Opening net book amount
Additions
Impairment
Amortisation charge *
Exchange differences
Closing net book amount
At 30 June 2023
Cost
Accumulated amortisation**
Net book amount
F
i
n
a
n
c
i
a
l
R
e
p
o
r
t
Goodwill
$
6,207,274
-
-
-
-
6,207,274
Software
$
536,376
6,219
-
(183,466)
(42,129)
317,000
Customer
contracts
$
-
-
-
-
-
-
8,885,406
(2,678,132)**
6,207,274
2,954,605
(2,637,605)
317,000
315,000
(315,000)
-
Goodwill
$
6,207,274
-
-
-
-
6,207,274
8,885,406
(2,678,132)
6,207,274
Software
$
317,000
59,312
-
(160,168)
24,470
240,614
3,060,647
(2,820,033)
240,614
Customer
contracts
$
-
-
-
-
-
-
315,000
(315,000)
-
Total
$
6,743,650
6,219
-
(183,466)
(42,129)
6,524,274
12,155,011
(5,630,737)
6,524,274
Total
$
6,524,274
59,312
-
(160,168)
24,470
6,447,888
12,261,053
(5,813,165)
6,447,888
* consolidated entity amortisation of $160,168 (2022: $183,466) 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
(a) Impairment Tests for Goodwill
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.
2023
Minerals
Metallurgical
2022
Minerals
Metallurgical
Australia
$
3,622,991
119,257
3,742,248
Australia
$
3,622,991
119,257
3,742,248
Africa
$
2,465,026
-
2,465,026
Africa
$
2,465,026
-
2,465,026
Total
$
6,088,017
119,257
6,207,274
Total
$
6,088,017
119,257
6,207,274
56
LYCOPODIUM LIMITED FY2023 FINANCIAL REPORT | 30 JUNE 2023
LYCOPODIUM LIMITED FY2023 FINANCIAL REPORT | 30 JUNE 2023
57
Directors’ Report Corporate Governance StatementDirectors’ DeclarationIndependent Auditor’s ReportShareholder InformationCorporate Directory
Financial Report
Notes to the
Financial Statements
As of 30 June 2023
(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). 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 for Australia
1.4% (2022: 1.4%) and for Africa 2% (2022 2%)
Discount Rate
For the Australian CGUs, the pre-tax discount rate applied to cash flow projections is 8.65% (2022: 6.10%) and for the Minerals
CGUs in other countries, the pre-tax discount rate is 13.09% (2022: 13.60%).
The discount rates mentioned above reflects management’s estimate of the time value of money and the consolidated entity’s
weighted average cost of capital and the risk free rate.
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.
(a) Cash Flow Assumptions
Minerals 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.
Financial Report
Notes to the
Financial Statements
As of 30 June 2023
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
Employee Share Trust
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
2023
$
2022
$
44,689
1,020,166
115,362
51,173
-
2,469,697
21,463
-
3,566,227
375,246
7,664,023
(3,954,919)
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)
3,709,104
3,814,979
12,621,890
16,066,084
3,849,044
1,738,671
7,664,023
17,804,755
F
i
n
a
n
c
i
a
l
R
e
p
o
r
t
Doubtful
debts
$
175,150
Employee
benefits
$
2,374,441
Deferred
revenue
$
497,837
Accrued
expenses
$
112,044
Other
pro-
visions
$
4,344,299
Depre-
ciation
$
27,476
Finance
leases
$
Unused
tax
losses
$
-
64,789
Lease
liabilities
$
4,201,860
Employee
Share
Trust
$
-
Total
$
11,797,896
(44,628)
200,012
8,229,580
(15,825)
(2,813,189)
20,951
4,005
(7,406)
3,858
429,501
6,006,859
130,522
2,574,453
8,727,417
96,219
1,531,110
48,427
4,005
57,383 4,205,718
429,501
17,804,755
Doubtful
debts
$
130,522
Employee
benefits
$
2,574,453
Deferred
revenue
$
8,727,417
Accrued
expenses
$
96,219
Other pro-
visions
$
1,531,110
Depre-
ciation
$
48,427
Finance
leases
$
4,005
Unused
tax
losses
$
57,383
Lease
liabilities
$
4,205,718
Employee
Share Trust
$
429,501
Total
$
17,804,755
(15,160)
(1,554,287)
(8,727,417)
(45,045)
938,586
(26,964)
(4,005)
(12,694)
(639,491)
(54,255)
(10,140,732)
115,362
1,020,166
-
51,174
2,469,696
21,463
-
44,689
3,566,227
375,246
7,664,023
Move-
ments
As at 01
July 2021
Credited/
(charged)
-to profit
or loss
At 30
June
2022
Move-
ments
As at 01
July 2022
Credited/
(charged)
- to profit
or loss
At 30
June
2023
58
LYCOPODIUM LIMITED FY2023 FINANCIAL REPORT | 30 JUNE 2023
LYCOPODIUM LIMITED FY2023 FINANCIAL REPORT | 30 JUNE 2023
59
Directors’ Report Corporate Governance StatementDirectors’ DeclarationIndependent Auditor’s ReportShareholder InformationCorporate Directory
Financial Report
Notes to the
Financial Statements
As of 30 June 2023
16. FINANCIAL ASSETS AND FINANCIAL LIABILITIES
(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:
Financial Assets 2023
Cash and cash equivalents Minerals
Trade and other receivables
Deposits held with banks
Investment in listed equities
Other Receivables
Financial Assets 2022
Cash and cash equivalents Minerals
Trade and other receivables
Deposits held with banks
Investment in listed equities
Other Receivables
Financial Liabilities 2023
Trade and other payables
Borrowings
Lease liabilities
Financial Liabilities 2022
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
$
-
-
-
3,037,485
-
3,037,485
Fair value
through
profit or loss
$
-
-
-
2,471,669
-
2,471,669
Fair value
through
profit or loss
$
-
-
-
-
Fair value
through
profit or loss
$
-
-
-
-
Amortised
cost
$
82,412,067
87,395,719
1,007,348
-
-
170,815,134
Amortised
cost
$
100,946,619
67,111,605
591,844
-
42,459
168,692,527
Amortised
cost
$
23,776,529
680,136
15,021,333
39,477,998
Amortised
cost
$
21,259,240
1,524,787
15,120,445
37,904,472
Total
$
82,412,067
87,395,719
1,007,348
3,037,485
-
173,852,619
Total
$
100,946,619
67,111,605
591,844
2,471,669
42,459
171,164,196
Total
$
23,776,529
680,136
15,021,334
39,477,999
Total
$
21,259,240
1,524,787
15,120,445
37,904,472
A description of the consolidated entity’s financial instrument risks, including risk management objectives and policies is
given in Note 2.
Financial Report
Notes to the
Financial Statements
As of 30 June 2023
(b) Borrowings
Borrowings include the following financial liabilities:
F
i
n
a
n
c
i
a
l
R
e
p
o
r
t
Secured
Finance Leases
Total Secured
borrowings
Unsecured
Other Loans
Total Unsecured
borrowings
Total borrowings
Current
$
2023
Non-Current
$
Total
$
Current
$
2022
Non-Current
$
Total
$
680,136
680,136
-
-
680,136
680,136
841,470
841,470
683,317
683,317
1,524,787
1,524,787
-
-
-
-
-
-
-
-
-
-
-
-
680,136
-
680,136
841,470
683,317
1,524,787
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 2.65% (2022: 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 2023 and 30 June 2022.
2023
Financial assets / (liabilities)
Listed Securities
Derivative liabilities – foreign exchange forward contracts
Net fair value
Level 1
$
Level 2
$
Level 3
$
Total
$
3,037,485
-
3,037,485
-
31,386
31,386
-
-
-
3,037,485
31,386
3,068,871
2022
Financial assets / (liabilities)
Listed Securities
Derivative liabilities – foreign exchange forward contracts
Net fair value
Level 1
$
Level 2
$
Level 3
$
Total
$
2,471,669
-
2,471,669
-
(536,081)
(536,081)
-
-
-
2,471,669
(536,081)
1,935,588
There were no transfers between Level 1 and Level 2 in 2023 and 2022.`
60
LYCOPODIUM LIMITED FY2023 FINANCIAL REPORT | 30 JUNE 2023
LYCOPODIUM LIMITED FY2023 FINANCIAL REPORT | 30 JUNE 2023
61
Directors’ Report Corporate Governance StatementDirectors’ DeclarationIndependent Auditor’s ReportShareholder InformationCorporate Directory
Financial Report
Notes to the
Financial Statements
As of 30 June 2023
(c) Fair Value Measurement (continued)
Movements:
Listed Securities
Balance 01 July
Additions
Revaluation
Disposals
Balance 30 June
2023
$
2022
$
2,471,669
-
565,814
-
3,037,485
739,920
-
1,902,830
(171,081)
2,471,669
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:
2023
$
1,156,701
2,652,794
3,809,495
2022
$
819,990
1,948,371
2,768,361
Country of
incorporation
& principal
place of
business
Australia
Australia
Principal activities
Engineering and construction services
Remote optimisation consulting services
Proportion of
ownership interest
held by the
Consolidated entity
2023
40%
50%
2022
40%
50%
Name of Joint Venture
Mondium Pty Ltd (‘Mondium’)
Orway IQ Pty Ltd (‘OIQ’) Incorporated
in May 2019
The Consolidated entity’s share of the results of its
principal joint ventures:
(Loss)/profit from continuing operations
Other comprehensive income
Total comprehensive income
Carrying amount of the consolidated entity’s interest in joint
ventures
2023
$
336,711
-
336,711
2022
$
(1,273,632)
(1,273,632)
1,156,701
819,990
F
i
n
a
n
c
i
a
l
R
e
p
o
r
t
Financial Report
Notes to the
Financial Statements
As of 30 June 2023
(a) Investment in Joint Ventures (continued)
Joint ventures summarised Statement of Financial Position
Cash and cash equivalents
Current assets
Non-current assets
Total assets
Current liabilities
Non-current liabilities
Total liabilities
Net assets
Consolidated entity's share of joint ventures net assets
(b) Investment in Associates
The consolidated entity has the following joint ventures:
2023
$
19,324,018
19,049,059
2,689,346
21,738,405
(18,405,717)
(440,936)
(18,846,653)
2,891,752
1,156,701
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
Country of
incorporation
& principal
place of
business
Australia
South Africa
Principal activities
Electrical engineering services
Engineering and consulting services
Proportion of
ownership interest
held by the
Consolidated entity
2023
31%
49%
2022
31%
49%
Name of Associate
ECG Engineering Pty Ltd
Kholo Marine & Minerals (Pty) Ltd
Incorporated July 2019
The Consolidated entity’s share of the results of its
principal associates:
Profit from continuing operations
Other comprehensive income
Total comprehensive income
2023
$
1,726,382
-
1,726,382
2022
$
1,072,460
-
1,072,460
Carrying amount of the Consolidated entity’s interest in associates
2,652,794
1,948,371
Included in the carrying amount of the company interest in associate is dividends of $1,021,959 (2022: $900,774).
Associate 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 Associate net assets
2023
$
1,275,399
12,408,693
1,011,330
13,420,023
(4,116,866)
(745,757)
(4,862,623)
8,557,400
2,652,794
2022
$
2,307,721
8,855,711
788,359
9,644,071
(2,972,429)
(386,574)
(3,359,003)
6,285,067
1,948,371
18. NON-CURRENT ASSETS - OTHER RECEIVABLES
Other receivables
2023
$
2022
$
-
42,459
None of the non-current receivables are impaired or past due but not impaired.
62
LYCOPODIUM LIMITED FY2023 FINANCIAL REPORT | 30 JUNE 2023
LYCOPODIUM LIMITED FY2023 FINANCIAL REPORT | 30 JUNE 2023
63
Directors’ Report Corporate Governance StatementDirectors’ DeclarationIndependent Auditor’s ReportShareholder InformationCorporate Directory
Financial Report
Notes to the
Financial Statements
Financial Report
Notes to the
Financial Statements
As of 30 June 2023
As of 30 June 2023
19. CURRENT LIABILITIES - TRADE AND OTHER PAYABLES
22. NON-CURRENT LIABILITIES - DEFERRED TAX LIABILITIES
Trade payables
Goods and services tax (GST) payable
Sundry creditors and accrued expenses
2023
$
5,408,804
5,032,437
18,367,725
28,808,966
2022
$
3,550,925
4,811,718
17,661,436
26,024,079
Included in the above are financial liabilities of $25,315,715 (2022: $21,259,240).
Details of the consolidated entity’s exposure to foreign exchange risk is provided in note 2.
20. CURRENT LIABILITIES – EMPLOYEE BENEFITS
Employee benefit obligations
Amounts not Expected to be Settled Within the Next 12 Months
2023
$
9,221,812
9,221,812
2022
$
8,869,891
8,869,891
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
21. CURRENT LIABILITIES – PROVISIONS
Service and equipment warranties
2023
$
1,884,217
1,526,706
3,410,923
2022
$
1,519,360
1,437,788
2,957,148
2023
$
9,578,601
2022
$
4,087,367
(a) Movements in Provisions
Movements in each class of provision during the financial year, other than employee benefits, are set out below:
2023
Carrying amount at beginning of year
Provisions reversed
Provisions recognised
Exchange differences
Carrying amount at end of year
Service and
equipment
warranties
$
4,087,367
-
5,440,853
50,381
9,578,601
Total
$
4,087,367
-
5,440,853
50,381
9,578,601
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.
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
2023
$
2022
$
170,241
17,945
627,197
-
3,139,536
3,954,919
(3,954,919)
-
191,087
3,763,832
3,954,919
(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
Movements:
As at 01 July 2021
Charged/(credited) - profit
or loss
At 30 June 2022
As at 01 July 2022
Charged/(credited) - profit
or loss
At 30 June 2023
Depreciation
&
amortisation
$
42,461
1,326,431
Accrued
income
$
199,548
(215,172)
Other
provisions
$
1,359,638
(1,321,957)
1,368,892
1,368,892
(741,695)
(15,624)
(15,624)
185,865
37,681
37,681
(19,736)
Prepaid
expenses
$
10,540
(11,669)
(1,129)
(1,129)
1,129
Right-of-
use assets
$
3,996,259
(203,214)
3,793,045
3,793,045
(653,509)
Total
$
5,608,446
(425,581)
5,182,865
5,182,865
(1,227,946)
627,197
170,241
17,945
-
3,139,536
3,954,919
F
i
n
a
n
c
i
a
l
R
e
p
o
r
t
23. NON-CURRENT LIABILITIES – EMPLOYEE BENEFITS
2022
$
2023
$
1,526,707
671,369
Employee benefits - long service leave
24. ISSUED CAPITAL
(a) Share Capital
Ordinary shares
Fully paid
Less: Treasury shares held by Employee Share Trust
Add: Exercise of Shares through Employee Share Trust
Less: Loan funded shares to senior management
Balance at the end of the period
2023
Shares
2022
Shares
2023
$
2022
$
39,740,226
(265,033)
201,209
(350,000)
39,326,402
39,740,226
(203,921)
50,000
(150,000)
39,436,305
20,854,574
(1,032,083)*
874,193
(2,145,327)**
18,551,357
20,854,574
(889,693)*
281,107
(901,828)**
19,344,160
*Movement in treasury shares held by Employee Share Trust during the year ended 30 June 2023 amounted to $ 142,391 (2022 : $ 889,693)
** Movement in Loan Funded Shares to Senior management during the year ended 30 June 2023 amounted to $ 1,243,499 (2022 : $ 901,828)
Refer Note 1 (ah) for accounting policy on accounting for Employee Share Trust. Refer Note 37(b) for further details on loan
funded shares.
64
LYCOPODIUM LIMITED FY2023 FINANCIAL REPORT | 30 JUNE 2023
LYCOPODIUM LIMITED FY2023 FINANCIAL REPORT | 30 JUNE 2023
65
Directors’ Report Corporate Governance StatementDirectors’ DeclarationIndependent Auditor’s ReportShareholder InformationCorporate Directory
Financial Report
Notes to the
Financial Statements
As of 30 June 2023
24. ISSUED CAPITAL (continued)
(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 2023, the consolidated entity’s strategy was to maintain a gearing ratio of less than 40%. The gearing ratios at
30 June 2023 and 30 June 2022 were as follows:
Total borrowings (including payables)
Less: cash and cash equivalents
Net debt
Total equity
Total capital
Gearing ratio
25. RESERVES
Share-based payment 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
2023
$
63,877,236
(82,412,067)
(18,534,831)
113,069,761
94,534,930
16%
2022
$
79,887,673
(100,946,619)
(21,058,946)
99,675,420
78,616,474
21%
2023
$
1,794,716
(5,367,407)
(3,572,691)
2022
$
1,333,109
(1,670,613)
(337,504)
2023
$
2022
$
1,333,109
574,275
450,800
(593,087)
29,619
1,794,716
623,021
487,419
220,500
(281,107)
283,276
1,333,109
(1,670,613)
(3,696,794)
(5,367,407)
(852,957)
(817,656)
(1,670,613)
Financial Report
Notes to the
Financial Statements
As of 30 June 2023
25. RESERVES (continued)
(a) Nature and Purpose of Reserves
Share-based Payments Reserve
(i)
The share-based payment reserve is used to recognised the fair value of rights issued to certain directors or employees
during the year. This also includes reserve for other share-based payments.
Foreign Currency Translation Reserve
(ii)
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.
F
i
n
a
n
c
i
a
l
R
e
p
o
r
t
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
Retained earnings
28. DIVIDENDS
(a) Ordinary Shares
2023
$
81,496,413
46,780,431
(28,612,962)
99,663,882
2022
$
67,758,814
26,851,874
(13,114,275)
81,496,413
2023
$
13,264
4,003
(288,240)
(1,406,668)
(1,677,641)
2022
$
13,264
4,003
(288,240)
(556,676)
(827,649)
Final dividends for year ended 30 June 2022 of 36.0 cents (2021: 15.0 cents)
per fully paid share paid on 7 October 2022 (2020: 8 October 2021)
Fully franked based on tax paid at 30% (2022: 30%)
Interim dividend for the year ended 30 June 2023 of 36.0 cents (2022: 18.0 cents)
per fully paid share paid on 6 April 2023 (2021: 7 April 2022)
Fully franked based on tax paid at 30% (2022: 30%)
Total dividends provided for or paid
2023
$
2022
$
14,306,481
5,961,034
14,306,481
7,153,241
28,612,962
13,114,275
(b) Dividends Not Recognised at the End of the Reporting Period
2023
$
In addition to the above dividends, since year end the Directors have recommended the payment
of a final dividend of 45.0 cents per fully paid ordinary share (2022: 36.0 cents), fully franked based
on tax paid at 30%. The aggregate amount of the proposed dividend expected to be paid on 6
October 2023 out of retained earnings at 30 June 2023, but recognised
as a liability at year end, is
17,883,102
2022
$
14,306,481
67
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Directors’ Report Corporate Governance StatementDirectors’ DeclarationIndependent Auditor’s ReportShareholder InformationCorporate Directory
Financial Report
Notes to the
Financial Statements
As of 30 June 2023
28. DIVIDENDS (continued)
(c) Franked Dividends
Financial Report
Notes to the
Financial Statements
As of 30 June 2023
30. CONTINGENCIES
The consolidated entity had contingent liabilities at 30 June 2023 and 30 June 2022 in respect of:
Franking credits available for subsequent reporting periods based on a tax rate of 30% (2022: 30%)
11,260,421
2023
$
2022
$
16,987,218
(a) Contingent Liabilities
(i) Guarantees
Guarantees are given in respect of rental bonds for $2,688,829 (2022: $9,097,573).
The above amounts are calculated from the balance of the franking account as at the end of the reporting year, adjusted for
franking credits and debits that will arise from the settlement of liabilities or receivables for income tax and dividends after the
end of the year:
(a) franking credits that will arise from the payment of the amount of the provision for income tax
(b) franking debits that will arise from the payment of dividend recognised as a liability at the reporting date, and
(c) franking credits that will arise from the receipt of dividend 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 recognised as a
liability at year end, will be a reduction in the franking account of $7,664,186 (2021: $6,131,349).
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 (2022: RSM Australia Partners)
Audit and Other Assurance Services
Audit and review of financial reports
Total remuneration
2023
$
2022
$
240,775
240,775
220,000
220,000
(b) Non-RSM Australia Partners (2022: Non-RSM Australia Partners)
Audit and Other Assurance Services
Audit and review of financial reports
Taxation Services
Tax compliance services (including income tax returns)
Other Services
Other services
Total remuneration of non-RSM Australia Partners audit firms
Total remuneration
2023
$
2022
$
121,442
117,373
179,872
27,583
45,972
347,286
20,219
165,175
588,061
385,175
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 $15,988,599 are provided in respect of performance and defects warranty as at 30 June 2023 (2022:
$12,624,858).
No material losses are anticipated in respect of any of the above contingent liabilities (2022: 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 (2022: Nil).
32. RELATED PARTY TRANSACTIONS
(a) Parent Entity
The parent entity within the consolidated entity is Lycopodium Limited, which is incorporated in Australia.
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(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
2023
$
3,082,961
134,388
730,626
3,947,975
2022
$
2,871,696
184,132
394,795
3,450,623
Detailed remuneration disclosures are provided in the Remuneration Report on pages 16 to 21.
(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
2023
$
2022
$
2,532,015
8,621,467
15,206,567
7,647,209
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Financial Report
Notes to the
Financial Statements
Financial Report
Notes to the
Financial Statements
As of 30 June 2023
As of 30 June 2023
32. RELATED PARTY TRANSACTIONS (continued)
(e) Outstanding Balances Arising from Sales/Purchases of Goods and Services
The following balances are outstanding at the end of the reporting year in relation to transactions with related parties:
Current Receivables
Associates and joint ventures
Current Payables
Associates
(f) Loans to/from Related Parties
Loans to Joint Ventures
Beginning of the year
Loans advanced
Repayments made
End of the year
2023
$
2022
$
795,093
605,259
3,885,840
107,948
2023
$
2022
$
20,000
56,433
(20,000)
56,433
4,020,000
20,000,000
(24,000,000)
20,000
There is no allowance account for impaired receivables in relation to any outstanding balances, and no expense has been
recognised in respect of impaired receivables due from related parties.
(g) Terms and Conditions
Purchases and sales of goods and services with statutory joint ventures are made at cost.
Purchases and sales of goods and services with the associate are made at arms-length.
Loans advanced to the joint venture is repayable within 12 months. Interest is payable on the loan at a rate of 2.05% per
annum.
Outstanding balances are unsecured and are repayable in cash.
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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 Americas Pty Ltd
Lycopodium (Ghana) Pty Ltd
Orway Mineral Consultants Americas Pty Ltd
(1) Engineering, procurement, construction management services
(2) Offshore project support services
Country of
incorporation
/ principal
activity
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
Class of
shares
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Equity holding
2023
%
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
2022
%
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
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 2023 financial year. The total amount of the dividend is $17,883,102 (2022: $14,306,481), which represents a fully franked
dividend of 45.0 (2022: 36.0) 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.
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Financial Report
Notes to the
Financial Statements
As of 30 June 2023
35. RECONCILIATION OF PROFIT AFTER INCOME TAX TO NET CASH
INFLOW FROM OPERATING ACTIVITIES
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 (includes warranty expenses for the period)
Change in operating assets and liabilities:
(Increase)/Decrease in trade debtors and other receivables
Increase in inventories
Decrease in deferred tax assets
Decrease/Increase 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
(a) Non-cash investing and financing activities
Additions to the right-of-use assets
Leasehold improvements - lease make good
Shares issued under employee share plan
(b) Changes in liabilities arising from financing activities
2023
$
45,558,581
6,366,509
461,607
749
(2,063,093)
75,555
(1,586,777)
3,954,639
(19,953,219)
71,998
-
195,873
3,136,808
(18,302,595)
-
855,339
18,771,974
2022
$
26,851,874
5,621,300
710,088
(432,759)
201,172
886,201
(2,000,159)
(28,828)
(27,164,810)
1,192,787
-
(2,051,490)
11,951,976
26,413,554
-
(1,376,252)
40,774,654
2023
$
3,458,302
1,537,424
(3,305,503)
2022
$
2,518,829
2,227,857
(1,510,414)
Consolidated
Balance as at 01 July 2022
Net Cash used in Financing Activitiies
Acquisition of leases
Finance costs for the period
Others
Exchange differences
Balance as on 30 June 2023
Borrowings
$
Lease Liability
$
Total
$
1,524,787
(844,651)
3,180
-
-
680,136
15,120,445
(4,229,642)
3,458,302
764,019
-
(91,791)
15,021,333
16,645,232
(5,074,293)
3,458,302
764,019
-
(91,791)
15,701,469
Financial Report
Notes to the
Financial Statements
As of 30 June 2023
36. EARNINGS PER SHARE
(a) Basic Earnings Per Share
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
2023
Cents
117.72
2023
Cents
117.72
2022
Cents
68.40
2022
Cents
68.40
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(c) Reconciliation of Earnings used in Calculating Earnings Per Share
For Basic Earnings Per Share
Profit attributable to the ordinary equity holders of the consolidated entity used in calculating basic
earnings per share
For Diluted Earnings Per Share
Profit attributable to the ordinary equity holders of the consolidated entity used in calculating
diluted earnings per share
2023
$
2022
$
46,780,431
27,177,702
46,780,431
27,177,702
(d) Weighted Average Number of Shares Used as Denominator
Weighted average number of ordinary shares used as the denominator in calculating basic
earnings per share
Adjustments for calculation of diluted earnings per share: Performance rights
Weighted average number of ordinary and potential ordinary shares used as the denominator in
calculating diluted earnings per share
2023
Shares
39,740,226
2022
Shares
39,740,226
-
39,740,226
-
39,740,226
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Directors’ Report Corporate Governance StatementDirectors’ DeclarationIndependent Auditor’s ReportShareholder InformationCorporate Directory
Financial Report
Notes to the
Financial Statements
Financial Report
Notes to the
Financial Statements
As of 30 June 2023
As of 30 June 2023
37. SHARE-BASED PAYMENTS
(a) Incentive Performance Rights Plan
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 15 November 2022. 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:
Grant date
2023
1 July 2019
28 November 2019
11 December 2020
19 November 2021
16 November 2022
Expiry date
29 June 2024
26 November 2024
10 December 2025
18 November 2026
15 November 2027
Exercise
Price
$0.00
$0.00
$0.00
$0.00
$0.00
Grant date
2022
1 July 2019
28 November 2019
11 December 2020
19 November 2021
Expiry date
29 June 2024
26 November 2024
10 December 2025
18 November 2026
Exercise
Price
$0.00
$0.00
$0.00
$0.00
Balance at
start of
the year
Number
Granted
during
the year
Number
Exercised
during
the year
Number
Forfeited
during
the year
Number
Balance at
end of the
year
Number
-
151,209
86,639
127,139
-
364,987
-
-
-
-
194,355
194,355
-
(151,209)
-
-
-
(151,209)
-
-
-
-
-
-
-
-
86,639
127,139
194,355
408,133
Balance at
start of
the year
Number
Granted
during
the year
Number
Exercised
during
the year
Number
Forfeited
during
the year
Number
Balance at
end of the
year
Number
50,000
168,320
107,168
325,488
-
-
-
127,139
127,139
-
(7,998)
(6,531)
-
(14,529)
-
(9,113)
(13,998)
(23,111)
50,000
151,209
86,639
127,139
414,987
Rights exercised during the financial year 151,209 (2022: 14,529).
The weighted average remaining contractual life of rights outstanding at the end of the financial year was 3.7 years
(2022: 3.2).
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
16 November 2022
Expiry date
15 November 2027
Share price
at grant
date
$6.79
Exercise
Price
$0.00
Expected
volatility
35%
Dividend
yield
7.95%
Risk-free
interest
rate
3.1%
Fair value
at grant
date
$4.56
Rights exercised during the financial year 151,209 (2022: 64,529).
The weighted average remaining contractual life of rights outstanding at the end of the financial year was 3.2 years (
2022: 3.2).
(b) Loan funded shares
On 03 October 2022, the company issued limited recourse loan funded shares to the director totaling to 200,000 (2022:
150,000) shares. 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
3 October 2022
Expiry date
2 October 2027
Share price
at grant
date
$6.79
Exercise
Price
$6.79
Expected
volatility
30%
Dividend
yield
0.00%
Risk-free
interest
rate
3.6%
Fair value
at grant
date
$2.25
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 $450,800 (2022: $220,500).
(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 issued under the Incentive Performance rights plan
Share-based expense relating to Loan funded shares
38. PARENT ENTITY 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
Share-based payment reserve
Retained earnings
Profit after income tax
Total comprehensive income
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p
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2023
$
574,275
450,800
1,025,075
2022
$
487,419
220,500
707,919
2023
$
2022
$
27,751,721
49,954,043
77,705,764
6,510,431
8,831,243
15,341,674
62,364,090
42,018,016
18,551,358
1,794,716
62,364,090
27,143,356
27,143,356
26,274,640
50,396,013
76,670,653
2,092,262
10,433,270
12,525,532
64,145,121
43,467,852
19,344,160
1,333,109
64,145,121
17,344,811
17,344,811
(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 $80.0m. 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 2023 or 30 June 2022.
(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 2023 or 30 June 2022.
(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
74
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Directors’ Report Corporate Governance StatementDirectors’ DeclarationIndependent Auditor’s ReportShareholder InformationCorporate Directory
Motheo Copper Project, Botswana
In the Directors’ opinion:
Directors’ Declaration
(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) 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;
(c) The attached financial statements and notes give a true and fair view of the consolidated entity’s financial position as at
30 June 2023 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
(e) At the date of this declaration, there are reasonable grounds to believe that the members of the Extended Closed Group
will be able to meet any obligations or liabilities to which they are, or may become subject by virtue of the deeds of cross
guarantee described in note 38(b) to the financial statements.
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
D
e
c
l
a
r
a
t
i
o
n
D
i
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e
c
t
o
r
s
’
Peter De Leo
Managing Director
Lycopodium Limited
Perth
21 August 2023
Nanoprobe beamline enclosures,
Project BRIGHT, Victoria
76
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Independent
Auditor’s Report
Independent
Auditor’s Report
Key Audit Matter
How our audit addressed this matter
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 2023, 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 2023 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.
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.
Revenue
Refer to Note 5 in the financial statements
The Group has recognised a total of $323,879,383
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
conditions,
judgmental
revenue recognition from contracts.
Impairment of goodwill
Refer to Note 14 in the financial statements
The carrying amount of goodwill at 30 June 2023 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 the appropriateness of the revenue
recognition policies applied by the Group against
the criteria in the accounting standards;
Assessing contractual terms with customers and
incurred
testing project revenues and costs
against underlying supporting documents;
Assessing management’s
the stage of completion,
assumptions
in
total
total budgeted cost
determining
transaction price and
estimate;
Checking the mathematical accuracy of revenue
and profit recognised during the year based on the
stage of completion;
Reading
and
customers’
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
Challenging
goodwill is allocated to each CGU;
the
key
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;
and
assessing disclosures in the financial report
the
against
requirements of the accounting standards.
the results of our
testing and
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Directors’ Report Corporate Governance StatementFinancial ReportDirectors’ DeclarationShareholder InformationCorporate Directory
Independent
Auditor’s Report
Independent
Auditor’s Report
Other Information
The directors are responsible for the other information. The other information comprises the information included
in the Group's annual report for the year ended 30 June 2023 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 2023.
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 2023, 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: 21 August 2023
JAMES KOMNINOS
Partner
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Shareholder Information
Shareholder Information
The shareholder information set out below was applicable as at 7 August 2023.
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
2
3
4
5
6
7
8
9
10
11
REESH PTY LTD
BNP PARIBAS NOMS PTY LTD
UBS NOMINEES PTY LTD
CHIMAERA CAPITAL LIMITED
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
CITICORP NOMINEES PTY LIMITED
NATIONAL NOMINEES LIMITED
BNP PARIBAS NOMINEES PTY LTD
CADDY FOX PTY LTD
J P MORGAN NOMINEES AUSTRALIA PTY LIMITED
GOTTERDAMERUNG PTY LIMITED
12 MR PETER DE LEO + MRS TIANA DE LEO
13
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED - A/C 2
14 MR DAVID JAMES TAYLOR
15
16
17
18
SELSO PTY LTD
DE LEO NOMINEES PTY LTD
JOHN O'SULLIVAN PTY LTD
BOTECH PTY LTD
19 MR PETER ROBERT LEMON
20 DE LEO NOMINEES PTY LTD
Total Holders
933
786
247
261
30
2,257
Ordinary shares
Number
held
Percentage
of Units
9,046,221
2,783,794
2,728,583
1,785,997
1,748,280
1,715,087
1,393,515
1,213,733
902,930
523,316
432,078
427,314
414,730
325,000
266,148
253,557
230,000
224,365
210,000
207,900
22.76
7.00
6.87
4.49
4.40
4.32
3.51
3.05
2.27
1.32
1.09
1.08
1.04
0.82
0.67
0.64
0.58
0.56
0.53
0.52
26,832,548
67.52
C. SUBSTANTIAL HOLDERS
Analysis of numbers of equity security holders by size of holding:
1
2
3
4
5
REESH PTY LTD
BNP PARIBAS NOMS PTY LTD
UBS NOMINEES PTY LTD
CHIMAERA CAPITAL LIMITED
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
Number
held
Percentage
of Units
9,046,221
2,783,794
2,728,583
1,785,997
1,748,280
22.76
7.00
6.87
4.49
4.40
D. VOTING RIGHTS
The voting rights attaching to each class of equity securities are set out below:
(a) Ordinary Shares
On a show of hands every member present at a meeting in person or by proxy shall have one vote and upon a poll each
share shall have one vote.
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Pacific National, New South Wales
Corporate Directory
Board of Directors
Michael John Caratti
Non-Executive Chairman
Peter De Leo
Managing Director
Bruno Ruggiero
Executive Director
Karl Anthony Cicanese
Executive Director
Rodney Lloyd Leonard
Non-Executive, Independent Director
Steven John Micheil Chadwick
Non-Executive, Independent Director
Louise Bower
Non-Executive, Independent Director
Audit Committee
Louise Bower
Peter De Leo
Rodney Lloyd Leonard
Remuneration Committee
Steven John Micheil Chadwick
Michael John Caratti
Rodney Lloyd Leonard
Risk Committee
Rodney Lloyd Leonard
Peter De Leo
Bruno Ruggiero
Company Secretary
Justine Campbell
Notice of Annual General Meeting
The details of the Annual General Meeting of
Lycopodium Limited are:
Fraser Suites Perth
10 Adelaide Terrace
East Perth, Western Australia 6004
10.30am on Tuesday 14 November 2023
Registered and Principal Office
Level 5, 1 Adelaide Terrace
East Perth, Western Australia 6004
+61 8 6210 5222
Share Registry
Computershare Investor Services Pty Limited
Level 11, 172 St Georges Terrace
Perth, Western Australia 6000
+61 8 9323 2000
Lawyers to the Company
Steinepreis Paganin
Level 4, The Read Buildings
16 Milligan Street
Perth, Western Australia 6000
+61 8 9321 4000
Auditors
RSM Australia Partners
Level 32, Exchange Tower
2 The Esplanade
Perth, Western Australia 6000
+61 8 9261 9100
Principal Banker
Australia and New Zealand Bank
Level 10, 77 St Georges Terrace
Perth, Western Australia 6000
Stock Exchange Listing
Lycopodium Limited shares are listed on the
Australian Securities Exchange (ASX code: LYL)
Website
www.lycopodium.com
Corporate Governance Statement
www.lycopodium.com/investor-relations/corporate-
governance/
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Lycopodium Limited
ABN 83 098 556 159
Level 5, 1 Adelaide Terrace
East Perth, Western Australia 6004
Australia
T: +61 8 6210 5222
E:
limited@lycopodium.com
lycopodium.com