Neometals Ltd | Annual Report 2024
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Annual Report 2024
for the Financial Year Ended 30 June 2024
Neometals Ltd | Annual Report 2024
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Neometals Ltd | Annual Report 2024
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Neometals Ltd | Annual Report 2024
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Contents
01
Overview
04
About Us
04
Financial Highlights
06
A message from our Chairman and
Managing Director
07
Review of Operations
08
Lithium-ion Battery Recycling
09
Lithium Chemicals
12
Vanadium Recovery
14
Precious Metals Recovery
15
Barrambie Titanium/ Vanadium
16
Annual Mineral Resource Statement
17
Sustainability Report
18
Sustainability at Neometals
18
Environmental Care
24
Community Benefit
26
People
28
Ethics & Accountability
30
Director’s Report
32
Renumeration Report (Audited)
40
Independent Auditor’s report
54
Auditor’s Independence Declaration
58
Director’s Declaration
59
Financial Statements
60
Consolidated statement of profit
60
or loss and other comprehensive income
Consolidated statement of financial position
61
Consolidated statement of changes in equity
62
Consolidated statement of cash flows
63
Index: Notes to the Consolidated
64
Financial Statements
Additional ASX Information
102
Corporate Directory
106
02
03
04
05
06
07
Neometals Ltd | Annual Report 2024
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Neometals has developed and is commercialising three environmentally-friendly
processing technologies that produce critical and strategic battery materials at
lowest quartile costs with minimal carbon footprint.
Through strong industry partnerships, Neometals
is demonstrating the economic and environmental
benefits
of
its
technologies
by
enabling
sustainable production of lithium, nickel, cobalt
and vanadium from recycling and waste recovery.
This reduces the reliance on traditional mine-
based supply chains and creates a resilient,
circular supply chain supporting the energy
transition. Via the Company’s three core business
units, the technologies are being exploited as
principal, in joint venture and licensed for royalties.
About Us
01
Who We Are
Purpose
To benefit our shareholders and our communities
through
sustainable
production
of
battery
materials.
Our Values
Decarbonisation, together with sustainable and resilient supply chains are the key challenges for the
energy transition. Neometals believes that the demand for environmentally-friendly and ethically sourced
battery materials will continue to grow with energy storage being the key enabler as we transition.
Overview
Neometals Ltd | Annual Report 2024
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Our Corporate Structure
Neometals has a corporate structure that reflects the Company’s diversified opportunities and desire to
form strong collaborative partnerships that drive innovation, expand market reach, and look to deliver
exceptional value to our stakeholders.
Neometals’ joint ventures are strategically located around the world, enabling the Company to tap into
the global circular battery economy to optimise the sustainable production, use, and recycling of batteries
and critical materials.
ACN 630 589 507
Pty Ltd
Li-ion Battery
Recycling IP
50%
Avanti Materials Ltd
Vanadium
Recovery IP
100%
Neometals
Investments Pty Ltd
26% Redivium Ltd
(ASX:RIL)
100%
Neomaterials
Pty Ltd
Lithium Chemical
Research & Development
100%
Lithium-ion
battery
recycling
Australian Titanium
Pty Ltd
Barrambie Titanium-
Vanadium Project
100%
Titanium &
Vanadium
Australia
Primobius GmbH
Li-ion Battery
Recycling Project JV
50%
Germany
Reed Advanced
Materials Pty Ltd
Lithium Chemicals
Project & IP
70%
Lithium
Chemicals
Vanadium
Recovery
Recycling Industries
Scandinavia AB
Vanadium
Recovery Project JV
88%
Sweden
Finland
Neometals Ltd
ASX: NMT
Overview
Neometals Ltd | Annual Report 2024
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Overview
Financial
Highlights
Market Capitalisation
$53.6m
Assets
$42.1m
Investments and
Receivables
$11.7m
Liabilities
$5.7m
Operating Cash
Outflows
$13.5m
Available Cash
(Net Debt)
$9.1m
Neometals Ltd | Annual Report 2024
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Neometals Ltd | Annual Report 2024
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A message from our Chairman
and Managing Director
The past financial year proved to be one of the most
challenging in the history of our Company. The
market’s response to the confluence of declining
prices for battery commodities (especially lithium
and vanadium), increasing cost of capital and
volatility in global capital markets, and delayed
project milestones across our portfolio of assets,
resulted in a material decline in market capitalisation
and shareholder value.
Despite these impacts, our core Primobius joint
venture LiB Recycling business continued its
successful development with first revenue achieved
from the award of contracts with Mercedes-Benz
AG for the supply of a fully integrated 2,500 tpa
recycling plant.
In response to these headwinds, your Company
responded decisively including by conserving
capital through the right-sizing of project teams
(-60%),
reducing
corporate
overheads
and
implementing an austerity plan for the board and
key management personnel. The Board remains
resolute in its purpose to drive stakeholder value
through the commercialisation of our innovative
processes to recover critical materials from high-
value
waste
streams
and
non-conventional
feedstocks. The global drive to mitigate climate
change continues unabated putting the spotlight
squarely on sustainability, clean energy transition
and the circular economy – principles which form
the basis of all our process technologies’ designs.
The Board is confident your Company’s business
model’s transition from hard-rock mining to
commercialising process technologies required by
the urban mines of tomorrow will prove to be astute
by delivering shareholders the best risk/reward
exposure to the clean energy thematic both in
current challenging times and especially in the
longer term as related commodity prices return to
more sustainable levels.
At Neometals we hold ourselves accountable to our
core values (“STRIDE”) in achieving our vision of
housing multiple commercial (cashflow generating)
process technologies for critical materials.
Our strategic focus is on:
a) disciplined capital management with a lean
organisational structure and strong commercial
partners to prove the scalability and product
readiness of our LiB recycling solutions for real
world problems; and
b) restructuring our portfolio of assets to prioritise
nearer-term cashflow generation, minimise risk and
redeploy capital from divesting non-core assets.
Your Company maintains its strong commitment
to transparent reporting against best practice
environmental, social and corporate governance
(“ESG”)
principles
in
the
discharge
of
its
responsibilities and to operate ethically and
respectfully to the communities in which it operates
and the people with whom it works.
The dedication and support of your Company’s
management team and Board warrant mention. In
particular, we take this moment to respectfully
acknowledge the outstanding contributions made
by those who are not continuing with our team.
We are grateful for their contributions which are
credit to their character, and we wish them the
best in their future endeavours.
The Board and management team is resolute in its
commitment to building and realising the inherent
value of your Company’s intellectual property assets
especially through the industrial validation of the
Primobius’ plant supply business and associated
commercial technology licensing royalties.
We will drive through these present headwinds,
confident in our abilities to execute our strategy
and deliver the milestones required to restore the
Company’s fortunes.
We thank our shareholders for their loyalty and
support over the last year.
Steven Cole
Chairman
Chris Reed
Managing Director/CEO
Overview
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The directors of Neometals Ltd (“Company” and “Neometals”) present the annual financial report for the
Company and its controlled entities (“Consolidated Entity” and “Group”).
Neometals facilitates sustainable critical material supply chains and reduces the environmental burden of
traditional mining in the global transition to a circular economy.
The Company is developing a portfolio of sustainable processing solutions that recycle and recover critical
materials from high-value waste streams.
Neometals’ core focus is on the commercialisation of its patented, Lithium-ion Battery (“LiB”) Recycling
technology (50% NMT), under a preferred plant supply and technology licensing business model.
Primobius GmbH is the 50:50 incorporated JV with 150-year-old German plant builder, SMS group GmbH,
that is commercialising the technology. Primobius is building a 2,500tpa recycling plant for Mercedes-Benz
under a long-term Cooperation Agreement. It also operates its own LiB disposal service in Germany and
plans to offer its first commercial 21,000 tpa plant to North American licensee, Stelco, in the June Quarter
of 2025.
Neometals is also developing two advanced battery materials technologies for commercialisation under
low-risk, low-capex technology licensing business models:
• Lithium Chemicals (70% NMT) – Patented ELi™ electrolysis process, co-owned 30% by Mineral
Resources Ltd, to produce battery quality lithium hydroxide from brine and/or hard-rock feedstocks at
lowest quartile operating costs. Pilot scale test work planned for completion in DecQ 2024; and
• Vanadium Recovery (100% NMT) – Patent pending hydrometallurgical process to produce high-purity
vanadium pentoxide from steelmaking by-product (“Slag”) at lowest-quartile operating cost and carbon
footprint.
Review of Operations
02
Figure 1 – Neometals’ Technology Projects and Associated Technology Readiness Levels
Review of Operations
Neometals Ltd | Annual Report 2024
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Lithium-ion Battery Recycling
Highlights
• In August 2023, Primobius was awarded a
purchase order for the fabrication, installation and
commissioning of a 2,500 tpa LiB shredding
‘Spoke’;
• In January 2024, Primobius was awarded a
purchase order (value ~ €18.8M (~ A$30.8M))
from Mercedes-Benz for the supply of a
hydrometallurgical refining Hub for installation
at its Kuppenheim Pilot Plant operation in
Germany. The order covers fabrication, installation
and commissioning of the Hub which will refine
intermediate products received from the 2,500
tpa shredding ‘Spoke’ which was materially
complete
from
an
installation
perspective
during the year (together Spoke and Hub
comprise the integrated Mercedes Pilot Plant);
• Preparations for installation of the Stage 2
‘Hub’ section of the Mercedes Pilot Plant and the
combined commissioning of the Spoke and Hub
will form a precondition to “Product Readiness” to
allow the sale of larger 20,000 tpa recycling plant
packages; and
• Entered into a technology licence and option
agreements with 1340455 B.C. Ltd, Stelco’s
lithium-ion battery recycling special purpose
vehicle (“Stelco SPV”) which plans to secure
large volumes of end-of-life vehicles in North
America for scrap steel and recycle LiBs, with a
first proposed 21,000 tpa integrated operation
(“Stelco Spoke” followed by “Stelco Hub”) at
Stelco’s Hamilton Works, Ontario, Canada.
• Ongoing business development activities to build
a global pipeline of potential future recycling plants;
and
• Continued recruitment activities to expand the
Primobius technical, operational, commercial
and management teams in line with corporate
milestones associated with offering mechanical
plant and equipment package supply contracts.
Primobius GmbH (“Primobius”) is the incorporated
joint venture established in 2020 to commercialise
Neometals’ lithium-ion battery (“LiB”) recycling
technology (“LiB Recycling Technology”). The
co-owner is SMS group GmbH, a 150-year old
German industrial plant builder, with in excess
of 14,000 employees globally and fabrication
facilities in Europe, USA, India and China.
Primobius was granted an exclusive licence from
Neometals’ LiB Recycling Technology holding
company, ACN 630 589 507 Pty Ltd (“ACN 630”)
to supply LiB recycling plants incorporating the
patented flowsheet. Primobius will pay royalties
to ACN 630 where it operates as principal
and will also pass through royalties from plant
supply and technology licensing arrangements.
ACN 630 is the ultimate beneficiary of five (5)
third party technology licences issued to date.
The structure is designed to flow plant supply
margin and technology royalties separately to
co-owners.
(Intellectual Property via ACN 630 589 507 Pty Ltd - NMT 50%, SMS 50%)
(Plant construction via Primobius GmbH, NMT 50% SMS group GmbH 50%)
PRE-COMMERCIAL TECHNOLOGIES
Figure 2 – Interests held by joint venture partners in intellectual
property and Primobius
Globally renowned plant builder
•
Specialised plant construction
and management expertise
•
Ability to construct, commission
and deliver on a global scale
(~14,500 employees, 100 sites,
+150 years of exp.)
Recycling and hydrometallurgical
expertise, significant portfolio of IP
•
Chemical recovery and
processing expertise
•
Management team with
development track record
ACN 630
IP HoldCo
50%
50%
Plant Supply Margin
Technology Licence Royalties
Neometals Ltd | Annual Report 2024
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Review of Operations
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Intellectual Property Status
The LiB Recycling Technology recovers materials contained in LiB production scrap and end-of-life cells
that might otherwise be disposed of in land fill. Existing LiB recycling technologies predominantly rely
on high carbon emission pyrometallurgical processes. Primobius’ two stage process recovers nickel,
cobalt, lithium and manganese battery materials (and physically recovers metals and plastics) into saleable
products that can be reused in the LiB supply chain. The LiB Recycling Technology prioritises maximum
safety, environmental sustainability and product recoveries to support the circular economy and
decarbonisation.
To date, five (5) patents have been granted with twelve (12) other national phase patents at various stages
of prosecution globally.
Figure 3 – High level flowsheet showing the movement of materials from Shredding and Beneficiation (‘Spoke’) through to refining
(‘Hub’) stages for the LiB Recycling Technology.
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Review of Operations
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Commercialisation Status
The LiB Recycling Technology is at Technology Readiness Level (TRL) 8: Industrial Validation.
Primobius / ACN 630 is currently deriving revenue from gate fees and product sales from its LiB Disposal
Operation in Hilchenbach, Germany, and its business model is targeting future revenues from:
1. Mechanical equipment and plant supply agreements (e.g. Mercedes-Benz Plant); and
2. Royalties from the sale by customers of refined products.
Hilchenbach Disposal Operation
Primobius operates a commercial LiB disposal service to the German EV and lithium battery supply chain
at its site in Hilchenbach, Germany (“Hilchenbach Spoke”). Primobius receives a gate fee to accept
batteries for disposal.
The Hilchenbach Spoke produces an intermediate mixed nickel/cobalt product (“Black Mass”) and a mixed
copper/aluminium product (“Black Copper”) which are sold on a spot basis, with pricing set according
to nickel/cobalt and copper content respectively.
During the year the Primobius Board approved an investment in equipment to increase throughput
to its approved limit of 9 tonnes per day.
Mechanical Equipment and Plant Supply
Entered into a Co-operation Agreement with Mercedes-Benz (“Mercedes”) (“Mercedes Cooperation”) in
March 2022. Under the Mercedes Cooperation, Primobius entered into a five (5) year research
collaboration aimed at jointly developing an industrial-scale solution for Mercedes1. Primobius accepted
purchase orders from Mercedes for the Spoke section of the plant in August 2023 and the Hub section
in January 2024.
Technology Licensing
Technology licensing and joint venture option agreements are in place with a subsidiary of Stelco Inc.
(“Stelco”) (“Stelco Agreements”). The Stelco Agreements allow Primobius to acquire a 25-50% equity
interest in the technology licensee at any time up to 30 June 2025.
Three (3) exclusive licences have been issued for Scandinavia, the Balkans and Italy and one non-exclusive
licence to the UK. Neometals is the largest individual shareholder in the licensees and ACN 630 is entitled
to receive a 10% gross revenue royalty from the technology licences.
Figure 4 – Mercedes-Benz LiB Recycling Building,
Kuppenheim Germany
Figure 5 - Part of the Integrated LiB Plant installed by
Primobus
1. For full details refer to Neometals ASX announcement headlined “Cooperation Agreement with Mercedes Benz” released on 13th
May 2022
Review of Operations
Neometals Ltd | Annual Report 2024
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Lithium Chemicals
RAM
is
an
incorporated
joint
venture
commercialising the patented ELi™ Process
(“ELi™”) which produces lithium hydroxide and
carbonate from lithium chloride solutions using
electrolysis. RAM has successfully converted
lithium chloride solutions from both natural
spodumene and brine feedstocks into battery
quality lithium hydroxide at semi-pilot scale.
ELi™ has the flexibility to produce lithium
hydroxide and/or lithium carbonate at potentially
significantly lower operating cost and carbon
footprint compared to conventional production
processes. ELi’s key economic advantage lies in
the potential to replace costly, imported bulk
chemical reagents with electricity and low-cost
internally generated reagents.
(Intellectual Property via Reed Advanced Materials Pty Ltd (“RAM”)
– NMT 70%, Mineral Resources Ltd 30%)
PRE-COMMERCIAL TECHNOLOGIES
Highlights
• The long-duration (1000hr) electrolysis component of the ELi™ Pilot was undertaken in the USA at
the Electrosynthesis Company Inc, the associated testing facility of RAM’s proposed electrolyser
vendor, NORAM Electrolysis Systems Inc.;
• The electrolysis campaign will provide data to increase confidence in the expected power
consumption, membrane performance and product quality assumptions applied in the 2023
Engineering Cost Study; and
• The final results are expected to be received in the December quarter 2024 and RAM will use the
result of the ELi™ Pilot to advance the demonstration plant and industrial validation partner selection
process. The current business model is to generate royalties from technology licensing to the salar
brine based lithium producers and developers
Neometals Ltd | Annual Report 2024
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Review of Operations
Neometals Ltd | Annual Report 2024
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Commercialisation Status
The ELi™ Process is at TRL 6: Continuous Pilot. RAM’s current business model is to generate royalties
from licensing the ELi™ Process to lithium brine and hard-rock operators, developers and
processing equipment suppliers.
RAM is completing pilot scale trials on a natural brine provided by the owners of an operating
South American lithium operation. RAM successfully concluded the first stage purification trials in
2023. In the June quarter 2024 RAM completed the second stage electrolysis of the purified
lithium chloride. The final stage of the trials will evaporate and crystallise the lithium hydroxide
catholyte solution produced in the electrolysis trials into lithium hydroxide monohydrate, for
assessment and evaluation by LiB cathode producers.
During the year, Neometals advised that RAM had ceased discussions with Lifthium Energy SA
(“Lifthium”), sister company to leading Portuguese chlor-alkali producer, Bondalti Chemicals SA
(“Bondalti”), in relation to co-funding the final stage of pilot test work and constructing a
commercial demonstration plant.
Intellectual Property Status
RAM now holds nineteen (19) granted patents in hard rock and brine producing countries and
has a further fourteen (14) pending national phase patents at various stages of prosecution
globally.
Figure 6 – Schematic showing a comparison of the conventional flowsheet for the production of lithium hydroxide from
brines with the patented ELi™ process
Review of Operations
Neometals Ltd | Annual Report 2024
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Vanadium Recovery
Neometals has developed a proprietary sustainable vanadium recovery process (“VRP Technology”)
that produces vanadium products for battery and aerospace alloying applications from stockpiles of
vanadium-bearing steel waste. The VRP Technology offers:
• A processing flowsheet utilising conventional equipment at atmospheric pressure, mild temperatures,
and non-exotic construction materials; and
• Potential lowest-quartile operating costs and carbon-footprint from processing steelmaking waste
(“Slag”), eliminating the cost, risks and environmental impact of mined upstream feedstocks.
(Intellectual Property held via Avanti Materials Ltd – NMT 100%)
Vanadium Recovery Project 1 via Recycling Industries Scandinavia AB (“RISAB”) – 88% NMT
PRE-COMMERCIAL TECHNOLOGIES
Highlights
• During the June 2024 quarter, Neometals assisted RISAB to explore value realisation options and
advanced discussions with potential licensees of the VRP Technology;
• RISAB applied for grant funding from EIT RawMaterials GmbH, which is co-funded by the European
Union, to advance Europe’s transition into a sustainable economy. If successful, the application
under the ‘Booster 2024 Program’ will enable a new project financing process to progress under the
management of leading Nordic bank, SEB. New equity providers required to support the project are
expected to become the majority equity holders of RISAB;
• RISAB entered a non-binding memorandum of understanding with the German steel producer,
Salzgitter Flachstahl GmbH, regarding collaboration towards potential future arrangements for the
supply of feedstock Slag to the project; and
• During the year Neometals increased its equity in RISAB from 72.5% to 88%, following the
subscription for new shares.
Intellectual Property and Status
Neometals’ Vanadium Recovery IP holding company, Avanti Materials Ltd, has nine (9) pending national
phase patents for the VRP Technology across one patent family, with two patents at examination stage.
Commercialisation Status
The VRP Process is at TRL 6: Continuous Pilot. The current business model is to generate royalties from
licensing the VRP Process to steel slag producers.
Review of Operations
Neometals Ltd | Annual Report 2024
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LI-ION/
VRFB
Batteries
V2O5
Flake
Fillers/
Industrial
Na2SO4
Sodium
Sulphate
Construction/
Cardboard Products
SSM
Leach Residue
(Akin to Iron
Rich Limestone)
CO2
Carbon
Dioxide
NaOH
Sodium
Hydroxide
H2SO4
Sulphuric
Acid
(NH4)2SO4
Ammonium
Sulfate
Na2CO3
Sodium
Carbonate
Outputs
Destination
Process
Inputs
All process water recycled
All gasses scrubbed
Figure 7 – High level flowsheet of Neometals VRP Technology
2. For full details refer to Neometals ASX announcement headlined “Vanadium Recovery Project Delivers Strong Feasibility Results”
released on 8th March 2023
Vanadium Recovery Project 1 (“VRP1”) – Finland
RISAB was incorporated to evaluate the feasibility of recovering high-purity vanadium pentoxide
(“V2O5”) from high-grade vanadium-bearing steel Slag in Scandinavia. In March 2023, Neometals
announced the results of a feasibility study that confirmed the potential for lowest-quartile operating costs
with a low-to-negative carbon footprint2. In the ensuing 6 months the vanadium price fell more than 50%
and equity financing could not be secured. Neometals advised the market in October 2023 that it could
not commit to a positive final investment decision on VRP1 and would pursue commercialisation through
a technology licensing business model.
PM
RECOVERY
Precious Metals Recovery
During the year the consolidated entity undertook research and development activities on a precious
metals recovery process that potentially recovers precious metals from industrial waste streams. The
due diligence performed on the metallurgical process did not provide sufficient confidence in technical
feasibility or economic viability of the technology at its current stage of maturity. Neometals therefore
allowed its option to acquire this project to lapse.
Option to acquire 80% Precious Metals Recovery, LLC (“PMR”)
RESEARCH AND DEVELOPMENT
Review of Operations
Neometals Ltd | Annual Report 2024
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Barrambie Titanium/
Vanadium Project
The Barrambie project, located approximately 80km north-west of Sandstone in Western Australia (“WA”),
is one of the largest vanadiferous titanomagnetite (“VTM”) mineral resources globally (280.1 Mt at 9.18%
TiO2 and 0.44% V2O5), containing the world’s second highest-grade hard rock titanium mineral resource
(53.6 Mt at 21.17% TiO2 and 0.63% V2O5). The mineral resource is secured under a granted mining lease
and has a granted mining proposal to extract approximately 1.2 Mtpa of mineralisation.
(Neometals 100%)
UPSTREAM MINING PROJECTS
Figure 8 – The Barrambie Greenstone belt and surrounding gold mines and mills
Highlights
During the year the following activities were undertaken to support the divestment of Barrambie:
• Tenement maintenance to keep Barrambie in ‘good standing’;
• Discussions continued with prospective acquirers of the Vanadium and Titanium rights on the
project; and
• Activities associated with preparation of an Exploration Target for gold. The Barrambie Greenstone
Belt hosts a number of historic gold mines and the town was established upon the discovery of gold
by contractors building the rabbit-proof fence in 1905.
Review of Operations
Neometals Ltd | Annual Report 2024
17
Barrambie Mineral Resource Estimate as at 17 April 2018
Classification
Tonnes (Mt)
TiO2 (%)
V2O5 (%)
Indicated
187.1
9.61
0.46
Inferred
93.0
8.31
0.40
Total
280.1
9.18
0.44
Reporting criteria: ≥ 10% TiO2 or ≥ 0.2% V2O5; small discrepancies may occur due to rounding.
See ASX Release 17 April 2018 titled: Updated Barrambie Mineral Resource Estimate.
There has been no change in the Barrambie Mineral Resource Estimate since the 2023 Annual Statement.
Classification
Tonnes (Mt)
TiO2 (%)
V2O5 (%)
Fe203 (%)
SiO2 (%)
Al2O3
Probable
27.6
22.3
0.57
43.7
16.5
20.4
Note tonnes and grades are as at the run of mine (“ROM”) and are dry.
Cut-off is based on achieving an average concentrate grade of 32% TiO2. To achieve this these filters were applied:
• TiO2 head grade > 0.37 x Fe2O3 head grade; and
• SiO2 head grade < 30%.
See ASX Release 15 May 2023 titled: Barrambie Titanium Project PFS and Ore Reserve Update.
There has been no change in the Barrambie Ore Reserve since the 2023 Annual Statement.
Competent Persons Statement
“The Barrambie mineral resource statement has been approved by Mr Matthew Walker and Mr Kahan
Cervoj, who consent to the inclusion in the report of the matters based on this information in the form
and context in which it appears. Both Mr Matthew Walker and Mr Kahan Cervoj are full-time employees
at Snowden Optiro. Mr Matthew Walker is a Member of the Australasian Institute of Mining and
Metallurgy (Member No. 316669). Kahan Cervoj is a both a Member of the Australasian Institute of Mining and
Metallurgy (Member No. 211785) and a Fellow of the Australian Institute of Geoscience (Member No. 6302).
The Barrambie Ore Reserve statement has been approved by Mr Frank Blanchfield, who consents to the
inclusion in the report of the matters based on this information in the form and context in which it appears.
Mr Blanchfield is an employee of Snowden Optiro and is a Fellow of the Australasian Institute of Mining and
Metallurgy.
The Company confirms that it is not aware of any new information or data that materially affects the
information included in the original market announcements and, in the case of estimates of Mineral
Resources or Ore Reserves, that all material assumptions and technical parameters underpinning the
estimates in the relevant market announcement continue to apply and have not materially changed. The
Company confirms that the form and context in which the Competent Persons” findings are presented are
not materially different from the original market announcement.”
Annual Mineral Resource Statement
Review of Operations
Neometals Ltd | Annual Report 2024
18
03
Sustainability
Report
SUSTAINABILITY AT NEOMETALS
Neometals considers sustainability and circularity integral to our business.
The pillars of our sustainability strategy: Environmental Care, People, Community
Benefit and Ethics & Accountability continue to guide our approach and the
relationships we have with our stakeholders.
Our sustainability framework is designed to evolve and adapt to change. Our ESG performance and efforts
toward a sustainable future are aligned to international framework, the Global Reporting Initiative (GRI)
and we are committed to the principles of the United Nations Sustainable Development Goals and the UN
Global Compact. We are proud to share our fifth sustainability report, this year documented as a subset
of our FY24 Annual Report.
Environmental Care – Minimise negative impact on people and the planet.
Community Benefit – Create shared value.
People – Foster an environment where employees
are valued and supported to fulfil their potential.
Ethics and Accountability – Continually
operate in an ethical and transparent
manner.
Sustainability Report
Neometals Ltd | Annual Report 2024
19
$80K Total Spend
for Community and
Scholarships
Community Benefit
Zero LTI* and Zero
Medical Treatment
Injuries
People
Implemented Supplier
Engagement Program
Ethics & Accountability
*Lost Time Injury (LTI)
Maintained Carbon
Neutral status
Environmental Care
$
Sustainability Report
Neometals Ltd | Annual Report 2024
20
Our FY24 Sustainability Report brings together the sustainability topics and
performance outcomes data that are material to Neometals and its stakeholders.
The report provides an overview of Neometals’ sustainability approach and
performance for the 12-month reporting period from 1 July 2023 to 30 June
2024. The report has been approved by the Neometals’ Board of Directors.
The report should be read in conjunction with the financial sustainability
and performance outlined in Neometals’ FY24 Annual Report, and the FY24
Sustainability Performance Databook and GRI Reporting Index, available on
our website. Other periodic and continuous disclosure announcements
lodged with the Australian Securities Exchange (“ASX”) and Alternative
Investment Market (“AIM”) of the London Securities Exchange can be found
at www.neometals.com.au. All monetary values are reported in Australian
dollars (AUD). We monitor changing ESG regulations and adjust our reporting
accordingly. External assurance was not sought for this report.
Boundary and
Scope
As Neometals’ technology and commercial development status has matured
over time, our sustainability strategy has also evolved. Originally, Neometals
targeted direct ‘principal’ involvement in operating projects. Over time,
Neometals transitioned to consider joint venture, technology royalty or
minority project equity opportunities. These arrangements may involve the
Company’s management, financial and/or operational control being reduced,
leading to Neometals’ sustainability responsibilities, activities and reporting
requirements moderating. As a shareholder in multiple joint ventures that have
commercialisation responsibility for the Neometals’ technologies, standalone
project level sustainability reporting is no longer fit for Neometals’ purpose.
While sustainability remains core to the business, our sustainability reporting
has been scaled back to better reflect the current size and scope of the
business. This change is also consistent with our FY24 financial reporting which
includes our Australian operations only.
This report covers our Australian locations which include the Neometals’ head
office and the Barrambie Project in Australia (100%). Sustainability disclosure
becomes a consideration for the JV companies which have operational control
of technology development and commercialisation. These entities include
Primobius GmbH (50% JV equity interest) our German battery recycling
company, RISAB (88% JV equity interest) developing the vanadium recovery
technology in Finland (“VRP1”) and Reed Advanced Materials Pty Ltd (70%
JV equity interest) which is developing the proprietary ELi™ technology.
We continue to refine our data collection processes which may result in
restatements of previously reported data, if material or meaningful. Such
restatements are noted in the footnotes of the performance data or corresponding
disclosures. Figures stated in this report are the latest.
Boundary and
Scope Specifics
Sustainability Report
Neometals Ltd | Annual Report 2024
21
During the reporting year we continued alignment with the following voluntary
sustainability standards and frameworks:
• Global Reporting Initiative (GRI)
In this report, Neometals has disclosed information in reference to the Global
Reporting Initiative (GRI) Sustainability Reporting Standards 2021, as well as
metrics from the GRI principles relating to organisational context, structure
and materiality assessment and prioritisation.
• Task Force on Climate-related Financial Disclosures (TCFD)
Neometals has disclosed in alignment with the TCFD recommendations since
FY21. While the TCFD was incorporated into the International Sustainability
Standards Board (ISSB) in 2023, it continues to be the foundation for the
transparent disclosure of climate-related reporting across many international
jurisdictions, including the proposed Australian Sustainability Reporting
Standards (ASRS) which are relevant to Neometals. Last year we conducted a
climate scenario analysis to support this commitment. More information can be
found in our FY23 ESG Report.
• United Nations Sustainability Development Goals (UNSDGs)
Neometals acknowledges the need for collaboration towards solving the
challenges currently facing the world and supports the UN 17 SDGs as an
urgent call for action by all countries in a global partnership. We identified the
UN SDGs aligned with each of our sustainability pillars and material topics.
• United Nations Global Compact (UNGC)
The UNGC provides a principle-based framework for companies to align their
strategies and operations with universal principles on human rights, labour,
environment and anti-corruption. Neometals has committed to the UN Global
Compact corporate responsibility initiative and its principles since 2020.
Alignment with the GRI and TCFD ensures that Neometals is well placed to
report against the new International Sustainability Standards Board (ISSB)
Standards and the Australian Sustainability Reporting Standards (ASRS) which
form part of the mandatory climate risk reporting framework, commencing
in FY25 for large Australian entities. Disclosures are referenced in the GRI
Reporting Index, available on our website.
Reporting
Frameworks
Neometals Ltd | Annual Report 2024
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Sustainability Report
Neometals Ltd | Annual Report 2024
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Neometals strives for ongoing positive engagement and collaboration with our
stakeholders. Engaging with our stakeholders, which we do at every opportunity,
enables us to share information about the Company, its business units and
projects and to gain a better understanding of their concerns or needs.
It allows us to make informed decisions, helping us to establish a social license
to operate.
Stakeholder
Engagement
Contractors
& Suppliers
Business
Partners
Employees
Shareholders
First
Nations
Peoples
Local
Communities
Finance
Providers
Government
& Regulatory
Agencies
Academic
Institutions &
Researchers
Industry &
Associations
The continuous identification and evaluation of our material risks, opportunities
and potential impacts is an integral part of Neometals’ sustainability strategy.
Following a comprehensive materiality assessment in FY23, including context
and impact analysis of our operations and value chain, our approach this year was
to review and prioritise our existing material topics to determine an appropriate
materiality boundary and focus for reporting.
Material
Topics
Neometals Stakeholders
Neometals is a member of the Australian Battery Recycling Initiative,
Association of Mining and Exploration Companies (AMEC) and the German
Australian Business Council.
Key
Memberships
Sustainability Report
Neometals Ltd | Annual Report 2024
23
Sustainability Pillar
Applicable UN SDGs
Material Topics
Material Definition
Environmental Care
Climate and emissions
Contribute to global climate
change efforts by reducing our
greenhouse gas (GHG)
emissions and delivering
decarbonisation solutions
Waste management and
circular economy
Reduce our levels of
generated waste and
maximise our recycling
potential
Community Benefit
Shared economic
and social outcomes
Ensure the economic value
generated and distributed
creates mutually beneficial
social outcomes for host
nations and communities
Technologies for a sustainable
future
Develop products and
implement circular practices
that will contribute to a
sustainable future
People
Health, safety and
wellbeing
Protect our people from
injury and ill-health by
upholding safe working
conditions and robust
management practices
Talent attraction and
development
Attract, retain and develop
a highly skilled workforce
by offering space for
professional growth
Ethics and
Accountability
Ethical values
Instill a culture of honesty,
transparency and accountability
across all levels of the business
We took the following steps to review and prioritise the material topics for inclusion in this report.
1. Review: We reviewed topics from our comprehensive FY23 materiality assessment and considered
potential new topics. There were no new topics introduced this year. The material topic, ‘Products
for a sustainable future’, was revised to ‘Technologies for a sustainable future.’
2. Consider: We considered the direct and potential economic, environmental, social and governance
impacts, taking into account the regulatory requirements where we operate.
3. Categorise: Topics were rated based on the significance of Neometals’ impacts and the effect on
Neometals’ prospects.
4. Prioritisation: Final topics were prioritised and a materiality boundary created with ‘watchlist’ topics.
5. Validation: Material topics were validated by senior leaders.
Materiality Process
FY24 Material Topics
Sustainability Report
Neometals Ltd | Annual Report 2024
24
ENVIRONMENTAL CARE
Minimise negative impact
on people and the planet
We recognise that our activities contribute to direct (Scope 1) and indirect
(Scope 2) GHG emissions. As purchased electricity accounts for 60% of our
emissions in FY24, it is a key focus of our emission reduction goals.
Year-on-year total emissions have dropped from 384 to 99 tonnes CO2
equivalent (74% reduction) due to the removal of JV emissions calculations.
Calculations and reporting of JV emissions is now the responsibility of the
operating JV companies which Neometals partly own. As owners, we continue
to target JV emission reductions and we aspire to continually improve
efficiencies in JV operations.
Where offsets are required, Neometals prefers to support schemes such as
carbon sequestration projects from the regions where we operate. As our
headquarters are in Western Australia, we continued offsetting our emissions
with Carbon Neutral through an accredited emissions reduction project, such
as the reforestation of the Yarra Yarra Biodiversity (Corridor) in Western
Australia. This Corridor is the largest biodiverse reforestation carbon sink in
Australia and the project simultaneously delivers environmental, economic,
social and heritage co-benefits.
Emissions
For Neometals, ‘Environmental Care’ includes the sustainable consumption of
resources and the minimisation of non-circular waste streams and emissions to
land, air and water. We value the environments in which we operate and where our
projects are located.
Neometals is committed to mitigating any negative impacts on ecosystems. We are guided by our
Economic, Environment, Social and Governance Policy (EESG) and Environmental policies and are
committed to developing and improving standards and practices to meet our environmental
responsibilities. Environmental performance and management are reported monthly to senior
management, the Risk and Sustainability Committee and ultimately the Board.
25t
CO2-e
Scope 1
77t
CO2-e
Scope 2
102t*
CO2-e
Scope 1&2
Electricity
Diesel
Petrol
FY24
60%
28%
12%
Zero
significant material
environmental
incidents or
regulatory fines
and penalties
Source of GHG emissions
Scope 1 & 2 emissions
Neometals Ltd | Annual Report 2024
25
Neometals remains committed to the Paris Agreement
to limit global warming to less than 1.5°C relative to
pre-industrial levels and recognises the key findings
of the Intergovernmental Panel on Climate Change
(IPCC) 6th Assessment Report. Through the very
nature of our business which develops green
processing technologies to enable products for
green applications, we are well positioned to
contribute to global decarbonisation and minimise
transitional risks. The Company is already taking
advantage
of
these
opportunities
through
its
participation in its operating JV’s.
Our technologies have been designed to enable
customers to conserve natural resources by reducing
reagents or bypassing the need for virgin extraction,
thereby reducing supply chain emissions.
Climate-related risks and opportunities are considered
in the Neometals annual strategic business planning
workshop (as well as the separate JV equivalent
workshops) and incorporated into the Neometals risk
management framework. More information about
our scenario analysis work and climate risks and
opportunities are available in our FY23 ESG Report.
Climate Change
Neometals’ strategy of using its technologies to
enable
sustainable
battery
materials
production
supports the global transition to a circular economy.
Specifically, we aim to enable the reuse of products
and materials rather than scrapping them and
extracting new virgin resources. Additionally, our
approach to waste management is to minimise
process and non-process waste through innovative
process flowsheet design.
Waste Management and Circular
Economy
Circular Practices in FY24
In general, Neometals’ non-hazardous waste streams
including office waste (such as cardboard, glass,
beverage containers, plastic, batteries and printer
cartridges) are recycled, with general household
waste diverted to landfill. Any waste that requires
special handling is managed by vendors equipped with
the expertise to properly reclaim, recycle or destroy
it. We handle our waste in accordance with local
standards and regulations.
Given our part ownership of the JV’s responsible for
commercialising Neometals’ technologies, we are
exposed to the waste minimisation benefits that come
from deployment of the technologies. This means that
existing and future JV customers of the JV’s have the
opportunity to use less reagents, and less materials
will be sent to stockpiles and landfill.
Neometals Ltd | Annual Report 2024
25
Sustainability Report
Neometals Ltd | Annual Report 2024
26
We are proud to invest in meaningful community projects that strengthen social
cohesion and uphold fundamental human rights. We also aim to deliver lasting
prosperity and benefits to the communities in which we operate by providing
competitive wages, prioritising local procurement and employment and paying
our fair share of taxes and royalties.
Throughout the reporting year, our social investment and community
contributions were largely focused on West Australian endeavours, including
academic scholarships, community donations to local charities and employee
volunteering initiatives. Community organisations we supported included
Meekatharra School of the Air, Lions Cancer Institute, Dry July, Crohn’s and
Colitis Australia, Shenton Park Dog Refuge, Kalgoorlie Bowling Club, WA
Sandgropers and various Rotary clubs.
Foodbank Mega Meals Challenge – a week-long corporate challenge where the
Neometals team members collectively prepared, cooked, packaged and labelled
more than 1,000 meals which were distributed to those who need them the most
through Foodbank’s branches and charity partners.
Parkerville Children and Youth Care – Neometals team members worked along-
side students enrolled in Parkerville’s Education, Employment and Training
Program to build and plant a ‘fairy vegetable garden’ providing an interactive,
hands-on learning experience for students.
Madalah Secondary Scholarship – Neometals was honoured to support the
Madalah Secondary Scholarship program which provides financial assistance
to Aboriginal or Torres Strait Islander students from remote communities to
complete their secondary education.
Moorditj Yorga Scholarship Program at Curtin University – supports mature-aged
Aboriginal and Torres Strait Islander women to enter university, complete their
studies and receive mentoring as they transition into their careers.
Curtin Scholarships – Neometals Ltd has been a proud sponsor of scholarships
at Curtin University for many years, including the Peter Collins Scholarship and
the Michael Pratt Scholarship. Both scholarships support final-year students in
Applied Geology, Chemical Engineering, and Metallurgical Engineering,
fostering future leaders in these fields.
This year the Peter Collins Scholarship was awarded to Ella Artemis who is
pursuing a Bachelor of Science in Applied Engineering. Ross Stone, who is
studying Chemical Engineering and Metallurgy, received the Michael Spratt
Scholarship. We look forward to hearing about the contributions Ella and Ross
will make in their respective fields.
Shared
Economic
& Social
Outcomes
COMMUNITY
BENEFIT
Create shared
value
$45K
Donated towards
scholarships
$35K
Donated towards
community
contributions
Neometals Ltd | Annual Report 2024
27
Clean energy technologies including vehicles and battery storage require varied types and volumes of
critical and strategic metals. These materials are both of high economic value and of high risk along their
complex value chains. The demand for environmentally and ethically sourced battery materials will
continue to grow with the global push for decarbonisation. We see ourselves as ‘above ground miners’,
supporting circular economic principles by recovering valuable materials at the end of useful life.
Our diversified technologies, particularly those in battery materials recycling and recovery, reduce
reliance on traditional mining and processing of raw materials:
Take the Neometals Vanadium Recovery Process (VRP Technology) as an example. It utilises existing
slag, a by-product generated by steel makers, to produce vanadium pentoxide which, amongst other
things, can be processed further downstream into an electrolyte solution for vanadium redox flow
batteries. The VRP Technology requires carbon dioxide from existing industrial processes which would
otherwise have been released to the environment and sequesters it into stabilised slag material (SSM).
Process water is recycled and the SSM can be used in a low-carbon cement. The novel chemistry of
vanadium electrolyte allows it to be used continuously in charge/discharge cycles of a vanadium redox
flow battery without any degradation or vanadium losses.
International regulations are also driving automakers to ‘close the loop’. Forexample, the European Union
Battery Recycling Regulations requires manufacturers of electric vehicle batteries to disclose not only
their carbon footprint but also the amount of recycled and reused minerals and metals. The lithium-ion
battery technology (“LiB Recycling Process”) targets the recovery of over 90% of all battery materials
including production scrap and end-of-life cells that might otherwise be disposed of in landfill. The
LiB Recycling Process recovers nickel, cobalt, lithium, copper, manganese and carbon which can be
sold and reused in the LiB supply chain.
Technologies for a Sustainable Future
Cathodic current
collector (Alumina)
Anodic current
collector (Copper)
Anodic electrode
graphite
Separator PE/PP
Cathodic electrode
LiCoO2
Typical Lithium Cell Diagram
Sustainability Report
Neometals Ltd | Annual Report 2024
28
We believe that all employees, contractors and visitors have a fundamental right
to a healthy and safe working environment. We are very pleased to report that
there were no recordable injuries or incidents at Neometals in FY24.
Our Workplace Health and Safety Policy sets out our commitment to develop,
maintain and improve the standards and work practices to achieve a safe and
healthy workplace for our people. All Neometals employees and contractors
are covered under our Workplace Health and Safety Management System.
Psychosocial Risk Assessment
Continuing our focus on mental health in the workplace, we conducted a
psychosocial risk assessment this year. Sixty-five percent of employees
participated in the survey to identify hazards, assess risks and implement
effective controls to enhance the psychological safety of our workforce. The
results of the survey helped to inform several employee policies which were
updated this year, ensuring that we are in a position to continuously improve
our workplace health, safety and wellbeing practices.
Health, Safety
& Wellbeing
We recognise that showing our people respect, treating them fairly
and fostering their development consistent with our six core values
reflected in the acronym: S.T.R.I.D.E. (Sustainability, Transparency,
Respect, Innovation, Discipline, Ethics).
PEOPLE
Foster an
environment
where
employees are
valued and
supported to fulfill
their potential
The Neometals Health, Safety, Environment and Community (HSEC)
management system continued to be deployed across all exploration activities.
Our exploration risk management standard requires that operational risks are
assessed in team-based risk workshops ahead of each program of works
to identify new risks and suitable controls. We validate the effectiveness of
controls for existing risks.
Contractor management was a focus to ensure the arrangement for HSEC
across each scope of work was understood and accepted by all parties prior to
engagement.
Emergency management plans were reviewed to ensure a prompt and effective
response to a potential exploration emergency event. Reliable communications
equipment, emergency protocols and suitably trained personnel are essential
for remote area exploration activities.
Health and
Safety at
Barrambie
Neometals Ltd | Annual Report 2024
29
“Pursuing a double degree in Masters of Science (Mineral
and Energy Economics) and an MBA at Curtin University
has been instrumental for my career in Finance and
Accounting
within
Australia’s
mining
industry.
The
specialised course-work has provided me with essential
skills for managing complex financial operations, project
evaluations, and strategic financial planning in the mining
sector. Courses on Mineral Finance, Resources Sector
Finance, and Econometrics have enhanced my ability to
analyse financial data and forecast market trends
effectively.
I am particularly thankful to Neometals for their support,
which was crucial in allowing me to complete my studies this
year. This advanced educational background has significantly
deepened my expertise and advanced my career in mining
finance.”
Board
(Exec & Non-Exec)
Female
Male
33%
67%
At Neometals we know that a diverse and inclusive workforce and culture will help us to achieve our
vision.
Our diversity targets for the Board, senior management and workforce are detailed in our Diversity
Policy. In FY24, our Board maintained 40% female representation among non-executives and 33%
female representation among executive and non-executive positions combined.
The training and development of our team continues to be a priority at Neometals. This year we invested
$54,000 in education and training to enhance the skills and professional development of our workforce.
Employees receive regular performance reviews and career development reviews.
The continuous development and learning of our people are key to the success and innovation of our
business. We encourage and assist employees to further their education with an education assistance
policy which funds approved courses and time to study.
Talent Attraction & Development
Workforce
Female
Male
30%
70%
Pablo Carabajal
Case Study: Pablo Carabajal
$54K
on training and
professional
development
Sustainability Report
Neometals Ltd | Annual Report 2024
30
The Board and senior management are committed to implementing high
standards of corporate governance, including compliance with the 4th edition
of the ASX Corporate Governance Principles and Recommendations. Further
information is set out in Neometals’ Corporate Governance Statement for the
financial year ended 30 June 2024 (FY24) and the Corporate Governance
Charter which can be found in the Corporate Governance section of our
website at www.neometals.com.au.
ETHICS & ACCOUNTABILITY
Continually operate in an
ethical and transparent manner
We believe that adopting and practising high standards of corporate
governance is integral to our business values, our performance and the
creation of long-term shareholder value. Neometals recorded no incidents of
corruption of ethical business conduct in FY24.
We have a suite of governance documents and policies that sets out our
commitment to business integrity. Our Code of Conduct, together with our
Values Statement, outlines our responsible conduct with stakeholders
and employees. We also have policies in place to address specific areas of
the business, including an Anti-Bribery and Corruption Policy, Whistleblower
Policy, EESG Policy, Human Rights Policy, Modern Slavery Policy, Diversity
& Inclusion Policy and Code of Conduct for Directors and Executives Policy.
All policies are accessible through our Corporate Governance Statement on our
website.
Neometals recognises and respects people’s human rights, cultural heritage
and connection that First Nations have to land, waters and the environment
and it supports the UN Declaration on the Rights of Indigenous Peoples.
We know we also have the potential to impact human rights of our employees,
workers in our supply chains and the people in the communities where we
operate either directly through our operations and indirectly through our
relationships with joint ventures, contractors and suppliers. Neometals aspires
to align business activities with the UN Guiding Principles on Business and
Human Rights and the International Labour Organisation (ILO) Declaration
on Fundamental Principles and Rights at Work.
Ethical
Values
Neometals has a strong risk management framework which is overseen by the
Board and its Risk and Sustainability Committee. It is aligned with the AS/NZS
ISO 31000 2009 (with 2018 update) standard. The Corporate Governance Risk
Management Policy guides risk assessment and is reviewed periodically to
ensure its effectiveness and continuing relevance to operations.
We disclose in our Annual Report any potential material exposure to economic,
environmental, social, or other sustainability risks.
Risk
Management
74%
of Neometals
employees
undertook
anti-corruption
training*
*As of 30 June 2024
Neometals Ltd | Annual Report 2024
31
Neometals has diversified business units and projects that intersect across battery supply chains. We are
committed to ensuring that working conditions in our supply chain are safe, fair and environmentally
responsible. Although our projects and suppliers are based in lower-risk jurisdictions which are subject
to robust environmental and social regulations, we require greater understanding of our suppliers and
their activities in order to safeguard human rights and mitigate climate impacts.
Supply Chain Integrity
In FY24, we commenced a supplier engagement program to improve our understanding of the
responsible conduct and performance of our suppliers, ensuring that they comply with applicable laws
and regulations. We developed a Supplier Code of Conduct, approved by the Risk and Sustainability
Committee and the Board, which sets out the minimum standards of behaviour the Company expects
from its suppliers in the areas of human rights and labour, health and safety, environment and climate
and governance and business ethics.
The phased program saw the following activities completed in FY24:
• Supplier self-assessment questionnaire (SAQ) developed;
• Supplier risk and due diligence mapping and screening assessment exercise was undertaken using
the Company’s Tier 1 suppliers; and
• Human Rights and Modern Slavery training program was developed and delivered to all employees.
Supplier Engagement & Self-Assessment Program
Policies: EESG; Environmental, Human Rights, Diversity, Workplace Health and Safety,
Discrimination, Harassment and Bullying; Risk Management; Whistleblower; Anti-Bribery and Corruption.
Employees
Communities
& First Nations
Business
Partners
Shareholders
Finance
Providers
Contractors
& Suppliers
Government
& Regulators
Stakeholders
Board of Directors
Ultimate ESG Oversight
Risk & Sustainability
Committee
Nominations
Committee
Audit
Committee
Remuneration
Committee
Delegation of Authority
CEO & Managing Director
Executive Leadership Team
Sustainability Working Group
Values: Sustainability | Transparency | Respect | Innovation | Discipline | Ethics
Code of Conduct; Charters & Policies
Appendix
Please visit www.neometals.com.au and navigate to our ESG platform for the
2024 Neometals Sustainability Performance Data book and the GRI Reporting
Index.
Sustainability Governance Structure Flow Chart
Sustainability Report
Neometals Ltd | Annual Report 2024
32
Steven Cole has over 40 years of professional,
corporate and business experience through
senior legal consultancy, as well as a range
of executive management and non-executive
appointments.
His extensive boardroom and board sub-
committee experience includes ASX listed,
statutory,
proprietary
and
non
for
profit
(NFP) organisations covering the industrial,
financial, educational, professional services,
agribusiness, health and resources sectors.
Steven’s professional qualifications include:
• LLB (Hons) – University of Western Australia
• AICD Company Directors Diploma and Fellow;
• Wharton Business School – University of
Pennsylvania
–
Corporate
Governance
Program 2010
• Harvard – Corporate Governance Program
2015
Appointed: 24 July 2008
Special responsibilities: Chairman of each of
the Nomination and Remuneration Committees
and Member of each of the Audit and Risk and
Sustainability Committees.
Directorships of other listed companies:
Non-executive Director Matrix Composites and
Engineering Ltd.
The directors of Neometals Ltd submit their report for the financial year ended 30 June 2024.
The names and particulars of the directors of the Company during or since the end of the financial year
are:
Steven Cole
Non-executive Chairman
(Independent)
Christopher J. Reed
Managing Director
(Not Independent)
Christopher Reed is an accountant with over
25 years’ experience in the resource industry
including more than 15 years in corporate
administration and management. Christopher
served
as
Managing
Director
of
Reed
Resources Ltd (now Neometals Ltd) from
September 2007 until May 2012 at which
time he assumed the role executive director.
Christopher resumed the role as Managing
Director from 1 October 2013.
Mr. Reed holds a Bachelor of Commerce from
the University of Notre Dame and a Graduate
Certificate in Mineral Economics from the
WA School of Mines. He is a member of the
AusIMM.
Appointed: 20 December 2001
Special responsibilities:
Managing Director/CEO.
Director’s Report
04
Director’s Report
Neometals Ltd | Annual Report 2024
33
Natalia Streltsova is a PhD qualified chemical
engineer with over 25 years’ experience in the
minerals industry, including over 10 years in
senior technical and corporate roles with mining
majors - WMC, BHP and Vale. She has a strong
background in mineral processing, technology
commercialisation, innovation management and
project development in multiple commodities.
During her executive career she managed projects
that specifically targeted the development of low
carbon emission technologies and environmental
clean-up through tailings and mineralised waste
re-processing.
Dr Streltsova has considerable international
experience covering project development and
acquisitions in South America, Africa and Central
Asia. In the last 10 years, since finishing full-time
executive roles, her focus has been on non-
executive board memberships and consulting.
Appointed: 14 April 2016
Resigned: 27 June 2024
Special responsibilities: Chair of the Risk and
Sustainability Committee and member of each of
the Remuneration and Audit Committees.
Directorships of other listed companies:
Ramelius Resources Limited (Chair of Risk &
Sustainability Committee), Centaurus Metals
Limited and Australian Potash Limited (resigned
29 January 2024).
Dr. Natalia Streltsova
Non-executive Director
(Independent)
Mr Douglas Ritchie
Non-executive Director
(Independent)
Doug has over four decades of experience
working in the mining industry, including as a
member of Rio Tinto’s Executive Committee,
Product Group Head of Energy, and the Group
Executive responsible for China. Doug’s expertise
across the industry is extensive.
He has previously been an Executive Director of
Jinchuan Group International Resources (HKSE),
Rossing Uranium Limited, Coal & Allied Limited
(ASX 50), and Director of various other ASX listed
companies. He was also formerly Chairman
of the Coal Industry Advisory Board to the
International Energy Agency, a Director of the
World Coal Association and a Director of the
Queensland Resources Council. Between 2013
and April 2016, Doug was Chairman of UniQuest,
the main commercialisation vehicle of the
University of Queensland.
Doug is a Fellow of the Australian Institute of
Mining and Metallurgy and a Fellow of the
Australian Institute of Company Directors.
Appointed: 14 April 2016
Special responsibilities: Chairman of the Audit
Committee and Member of each of the Nomination
and Risk and Sustainability Committees.
Directorships of other listed companies:
Chair and member of Audit and Risk Committee,
Metro Mining Limited.
Director’s Report
Neometals Ltd | Annual Report 2024
34
Dr Purdie’s extensive career has seen her hold
roles in engineering, senior technology, strategy
and operations for leading international mining
companies. Dr. Purdie’s most recent role was as
Asset president for BHP, managing the Olympic
Dam copper/gold/silver/uranium project in South
Australia. This involved budgetary and overall
leadership accountability for the Olympic Dam
asset inclusive of non-financial metrics relevant to
ESG performance Dr. Purdie has also served as
a senior executive for Jemena Management
Holdings – Executive General Manager Gas
Distribution, CEO of Adani Renewables Australia,
Executive Vice President - Enterprise Services
at Aurizon, Global Practice Leader for Rio Tinto’s
Technology and Innovation team (leading a global
network of in-house technologists and suppliers
to deploy innovative technologies across Rio
Tinto operations). Earlier in her career she filled
engineering and management roles with Rio Tinto,
Alcoa and Altona Petrochemical.
In her senior management and operational roles,
Dr Purdie has been deeply immersed in technology
development. She has a PhD and Bachelor of
Engineering (Chemical and Materials, Hons 1)
from Auckland University and an Executive MBA
from the University of Queensland. She is a Fellow
of
the
Institution
of
Chemical
Engineers,
a graduate of the Australian Institute of Company
Directors and a member of Chief Executive
Women.
Appointed: 27 September 2018
Special Responsibilities:
Executive Director/COO.
Directorships of other listed companies: Nil.
Dr Jenny Purdie
Non-executive Director (until 29 May 2024) (Independent)
Executive Director (from 29 May 2024) (Not Independent)
Mr Guthrie is an engineer with over 45 years
experience in the project delivery space. He
has held corporate executive and project
management roles, across the UK, Australia,
North America and Asia. It is a background
steeped in the strategy, development and
delivery of major capital programs spanning
mining, infrastructure and oil & gas.
He is Managing Director of Bedford Road
Associates, where he has provided advice and
delivery support to clients in Mongolia, South
Korea, New Zealand as well as in Australia.
Prior to establishing Bedford Road Mr Guthrie
was Vice President Projects for BHP Billiton.
Previously he held roles as Group Head of
Capital Projects and President LNG for BG Group
in the UK, President of Aker Kvaerner Inc. in the
US, and Managing Director of Aker Kvaerner
Australia.
Mr Guthrie was a founding contributor to the
John Grill Centre for Project Leadership at
Sydney University and was previously engaged
as a subject matter expert by EY Advisory. He
holds a B.Sc. from the University of West of
Scotland and is a member of the Australian
Institute of Company Directors.
Appointed: 27 September 2018
Special responsibilities: Member of the Risk
and Sustainability Committee and Remuneration
Committee.
Directorships of other listed companies:
DRA Global Ltd (Chair of People, Culture &
Remuneration Committee, and member of
Sustainability, Safety, Health & Environmental
Committee) (resigned 4 October 2023), Advanced
Braking Technology Ltd (effective 1 August 2023)
& Australian Mines Ltd (member of Risk
Committee; resigned July 2023).
Mr Les Guthrie
Non-executive Director
(Independent)
Director’s Report
Neometals Ltd | Annual Report 2024
35
Jason Carone
Chief Financial Officer and Company
Secretary
Mr. Carone is a Chartered Accountant with over
20 years’ experience in accounting and company
administration in Australia and South East Asia.
Mr. Carone holds a Bachelor of Commerce in
Accounting and Business Law from Curtin
University and is a member of the Chartered
Accountants Australia & New Zealand, and
Chartered Secretaries Australia.
Appointed: 4 March 2009
Resigned Chief Financial Officer: 30 June 2024
Resigned Company Secretary: 11 July 2024
Christopher Kelsall
Chief Financial Officer and Company
Secretary
Chris Kelsall has over 30 years of professional,
corporate and business experience through law,
investment banking and commercial consultancy,
as well as a range of executive management and
non-executive appointments in public listed and
private organisations in the resources, minerals
processing, clean technology, oil and gas, and oil
services sectors.
Chris’s professional qualifications include:
• Bachelor of Economics and Bachelor of Laws –
University of Western Australia
• Graduate Diploma in Applied Finance and
Investment – Financial Services Institute of
Australasia
• London Business School – University of London
– Masters in Finance (Distinction)
Appointed Chief Financial Officer: 1 July 2024
Appointed Company Secretary: 12 July 2024
Director’s Report
Neometals Ltd | Annual Report 2024
36
The consolidated loss after income tax for the year
attributable to members of Neometals Ltd was $69.1
million (2023: $34.8 million). A detailed review of
the Company’s operations during the financial year
can be found on pages 8 to 17 of this Annual Report.
During the financial year the Consolidated Entity’s
primary focus was the continuous development and
commercialisation
of
its
proprietary
innovative
processing technologies with strong global partners
to recycle and recover critical materials from high-value
waste streams.
Neometals aims to support sustainable critical material
supply chains and reduces the environmental burden
of traditional mining in the global transition to a circular
economy.
There have not been any significant changes in the
affairs of the Consolidated Entity from the previous year.
Principal Activities and Changes in
State of Affairs
Events After The Reporting Period
On 11 July 2024, Neometals announced that recently
appointed Chief Financial Officer (on 1 July 2024), Chris
Kelsall, was also appointed Company Secretary (on 12
July 2024) to replace the departing Mr Jason Carone.
On 19 August 2024, Neometals announced the
successful completion of a subscription agreement
with existing long-term shareholder Mr William Robert
Richmond for approximately US$3m (AUD$4.5m)
through the issue of 66,666,666 new ordinary fully
paid shares. The shares were issued on 20 August 2024.
On 22 August 2024, Neometals announced a strategy
update for a restructure of the company to right size
the organisation and its underlying cost base to reflect
a new strategic refocus.
On 16 September 2024, Neometals 88% owned entity,
Recycling
Industries
Scandinavia
AB
(“RISAB”),
executed a project agreement with EIT RawMaterials
GmbH to support the development of the Finnish
vanadium recovery project (“VRP1”) via a €0.5M
(c. A$829k) grant to RISAB’s 100% owned VRP1 holding
company, Novana Oy (“Novana”).
On 17 September 2024, Neometals was served with
documents relating to proceedings in the Federal
Court of Australia which have been commenced
against it by an employee affected by the corporate
restructure announced on 22 August 2024.
On 23 September 2024, Neometals announced a gold
exploration target related to the Barrambie Project.
Other than stated above, no matters or circumstances
have arisen since the end of the financial year that
have significantly affected, or may significantly affect
the operations, results of operations or state of affairs
of the Group in subsequent financial years.
The Consolidated Entity intends to continue its focus
on disciplined development and commercialisation of
its three processing technologies, Lithium-ion Battery
Recycling, Vanadium Recovery and Lithium Chemicals
(via ELiTM). Neometals will be Prioritising the progression
of Primobius, the LiB Recycling joint venture with SMS
group
GmbH,
through
industrial
validation
to
commercialisation. The pre-commercial lithium and
vanadium recovery technologies have been developed
to pilot scale but require significant additional capital
to demonstrate proof-at-scale. Neometals is actively
supporting these distinct business units to become
independently funded and will consider options to
potentially sell down beneficial ownership, by procuring
commercial partners for those business units. The
divestment
of
Barrambie
remains
part
of
the
Consolidated Entity’s strategy to generate cashflow
from non-core assets and supports the focus on
circular, sustainable materials recovery and recycling.
Environmental Regulations
As required by section 299(1)(f) of the Corporations
Act the Company confirms that it has performed all
of
its
environmental
obligations
in
accordance
with applicable environmental regulations.
Dividends
No dividends were paid during the year.
Indemnification of Officers and
Auditors
During the financial year the Company paid a premium
in respect of a contract insuring the directors and
officers of the Company and of any related body
corporate against a liability incurred as a director or
officer, to the extent permitted by the Corporations
Act 2001. The contract of insurance prohibits
disclosure of the nature of the liability and the amount
of the premium.
The Company has not otherwise, during or since the
financial year, except to the extent permitted by law,
indemnified or agreed to indemnify an officer or
auditor of the Group or of any related body corporate
against a liability incurred as such an officer or auditor.
Unissued Shares Under Option
There were no unissued ordinary shares of the company,
Neometals Ltd, under option at the date of this report.
No shares of the Company were issued during or since
the end of the financial year as a result of the exercise of
an option over the unissued shares of the Company.
Please refer to the Remuneration Report at page 50
below for details of Performance rights issued as part
of Key Management Personnel (“KMP”) remuneration.
Future Developments
Review of Operations
Director’s Report
Neometals Ltd | Annual Report 2024
37
The following table sets out each director’s relevant interest in shares, debentures, and rights or options in shares or
debentures of the Company or a related body corporate as at the date of this report:
The following table sets out the number of directors’ meetings (including meetings of committees of
directors) held during the financial year and the number of meetings attended by each director (while they
were a director or committee member). During the financial year, 14 board meetings, 2 nomination committee
meeting, 2 remuneration committee meetings, 1 risk and sustainability committee and 3 audit committee meetings
were held.
(1) Natalia Streltsova resigned from her position as Non-Executive Director on 27 June 2024. The shares in this table represent her final
security holdings as at the date of her resignation.
Meeting numbers in the “Held” column are the number of meetings held whilst the relevant director was a member of the Board or
committee.
(1) Excludes several informal meetings of the members of the Nomination and Remuneration Committees to discuss matters including
the establishment of executive KPIs for incentive-based remuneration and the TSR comparator group, board evaluation and board
succession planning.
(2) Excludes several informal meetings of the members of the Risk and Sustainability Committee and management to discuss matters
including the Company’s strategic direction and resultant changes in risk exposure.
Directors’ Security Holdings
Directors’ Meetings
Directors
Fully paid
Ordinary Shares
Number
Share
Options
Number
Performance
Rights
Number
S. Cole
2,257,055
-
835,642
C. Reed
10,136,079
-
1,385,465
D. Ritchie
423,162
-
371,822
N. Streltsova⁽1⁾
361,287
-
91,175
J. Purdie
571,574
-
121,567
L. Guthrie
267,066
-
137,585
Directors
Board of
Directors
Nomination
Committee
Remuneration
Committee
Risk and
Sustainability
Committee
Audit
Committee
Held
Attended
Held1
Attended
Held1
Attended
Held2
Attended
Held
Attended
S. Cole
14
13
2
2
2
2
2
1
3
3
C. Reed
14
14
n/a
n/a
n/a
n/a
n/a
1
n/a
3
N. Streltsova
14
14
n/a
n/a
n/a
n/a
n/a
1
3
2
D. Ritchie
14
13
2
2
2
2
2
0
3
3
J. Purdie
14
13
2
2
2
n/a
n/a
1
3
3
L. Guthrie
14
13
n/a
n/a
n/a
n/a
n/a
0
n/a
2
Director’s Report
Neometals Ltd | Annual Report 2024
38
Proceedings on Behalf of the Company
No person has applied for leave of the court to bring
proceedings on behalf of the Company or intervene
in any proceedings to which the Company is a party
for the purpose of taking responsibility on behalf of
the Company for all or part of those proceedings. The
Company was not a party to any such proceedings
during the year.
Corporate governance statement
The Company is committed to high standards of
corporate governance designed to enable the
Company to meet its performance objectives and
better manage its risks.
The
Company
has
adopted
a
comprehensive
governance framework in the form of a formal corporate
governance charter together with associated policies,
protocols and related instruments (together “Charter”).
The Company’s Charter is based on a template which
has been professionally verified to be complementary
to and in alignment with the ASX Corporate
Governance Council Principles and Recommendations
4th Edition 2019 (“ASX CGC P&R”) in all material
respects. The Charter also substantially addresses the
suggestions of good corporate governance mentioned
in the “Commentary” sections of the ASX CGC P&R.
The Charter was formally adopted by the Board on 19
December 2019 and subsequently updated for the
Company’s compliance listing on the London Stock
Exchange and adopted by the Board on 16 February
2022.
The Board of Neometals is responsible for the corporate
governance of the company and its subsidiaries. The
Board has governance oversight of all matters relating
to the strategic direction, corporate governance,
policies, practices, management and operations
of Neometals with the aim of delivering value to its
Shareholders and respecting the legitimate interest
of its other valued stakeholders, including employees,
suppliers and joint venture partners.
The Company acknowledges the extended tenure of
Steven Cole, the nomination committee chair, is beyond
that which may normally be considered independent
in accordance with the ASX Principles of Corporate
Governance. The Company board has assessed the
circumstances and determined it is confident Mr Cole
has retained sufficient independence to maintain
unfettered and independent judgement on issues
arising.
Under ASX Listing Rule 4.10.3, Neometals is
required to provide in its annual report details of
where shareholders can obtain a copy of its Corporate
Governance Statement, disclosing the extent to
which the Company has followed the ASX Corporate
Governance Council Principles and Recommendations
in the reporting period. Neometals has published
its Corporate Governance Statement on its website:
neometals.com.au/investors/corporate-governance
Statements as to risk appetite and tolerance
Neometals accepts that to meet its Strategic Objectives
including for the benefit of its stakeholders generally
as well as delivering appropriate returns and value for its
shareholders, it must accept and prudentially manage
risks.
To this end Neometals has adopted and applied a
comprehensive
and
cohesive
risk
identification,
assessment, management and mitigation framework
(“Risk Framework” or “RF”) consistent with prudential
professional Australian and international standards; ASX
Corporate Governance Principles, Recommendations 7
and ISO31000 guidance.
The Board of Neometals is prepared to accept a certain
level of risk assessed under its RF to further its Strategic
Objectives. In doing so the Company sets boundaries
as to the degree of assessed risk that it is prepared to
accept for that purpose (“Risk Appetite”). In some
instances, identified and assessed risks are outside
the assessed boundary of Neometals’ Risk Appetite but
nevertheless Neometals’ is prepared to accept the
risk, perhaps with some qualifications. That is Neometals’
Risk Tolerance. There are two categories where this
may be contemplated:
i) Where the Neometals board, by properly considered
and duly passed resolution, is prepared to accept
as being within its Risk Appetite a designated risk
that is inherently essential to its Strategic Objectives
notwithstanding the assessment of the risk being
beyond its risk appetite boundary (e.g. international
commodity pricing over which NMT may have little
control, influence or mitigation means);
ii) Where a designated risk is currently assessed as
being beyond Neometals’ risk appetite boundary but
would be assessed as being within such boundary
within the next 6 month period (or such longer
period specifically approved of by the Board with
respect to that risk) should extra “control effectiveness”
to mitigate the risk be implemented within that
period
and
Neometals
commits
to
appropriate
resources being deployed to achieve that outcome.
Notwithstanding the above, as a matter of policy, matters
identified as impacting health, safety, environment and
communities (“HSEC”) risks and which are assessed to
be beyond Neometals’ Risk Appetite generally will not
be accepted as within the Company’s Risk Tolerance
unless the mitigations to address the risk are actively
being progressed with every confidence of the likelihood
rating being materially reduced in early course.
Overarching risk management
The Company is exposed to a range of market, financial,
operational, environmental, and socio-political risks
that could have an adverse effect on the Company’s
future performance. The nature and potential impact
of these risks can change over time and vary in the
degree to the extent the Company can control them.
During the reporting period, the Risk and Sustainability
Committee reviewed the effectiveness of the Company’s
risk management policy, risk framework, and the
processes required to govern risk identification,
assessment, monitoring, and reporting with due regard
to the Company’s risk appetite and tolerance levels.
The Company considers that any material exposure to
environmental, social, or other sustainability risks it may
have are addressed in the following observations:
a) Economic risks:
The Company operates in a global market for mineral
commodities with their pricing and supply/demand
attributes inherently the subject of many factors beyond
the absolute control of the Company.
Director’s Report
Neometals Ltd | Annual Report 2024
39
The majority of the Company’s technologies and
battery material projects are also in development phase
with anticipated future capital requirements for their
commercialisation. The Company will be dependent on
future raisings (equity and debt) from the capital markets
to support the ongoing development of those projects.
It is noted and accepted that “unfavourable commodity
prices” and “volatile capital markets” are material risks
for the Company and inherently essential to its strategic
objectives.
b) Environmental and sustainability risks:
The Company’s focus is on the continuing development
and
commercialisation
of
proprietary
innovative
technologies relating to the sustainable production of
battery materials to meet the demands of an energy
transition from fossil fuel dependence. The nature and
design of the Company’s technologies prioritise safety,
environmental
footprint,
process
efficiency
and
economics. The technologies are anticipated to produce
key battery materials with lowest quartile operating costs
and carbon footprint from processing of recycled and
waste feedstocks. Given the Company’s strategic and
operating approach, downside outcomes arising from
environmental and climate change risks have been duly
considered and assessed towards the lower end of the
spectrum.
In fact, risks relating to environmental and climate
change issues pose more as opportunities than risks
which the Company is seeking to leverage against.
c) Social risks:
The Company’s primary business operations are in
jurisdictions with robust environmental and social
legislation
and
regulations
including
labour
and
employment practices, human rights and cultural
heritage.
The Company endeavours to identify and prevent or
mitigate any social risks including human rights
impacts resulting from its business activities through
the application of robust strategies, maintaining strong
relationships with communities and delivering on
commitments made. With respect to the Company’s
Barrambie
Project,
previously
enacted
(and
now
repealed) Aboriginal Cultural Heritage legislation may
have posed some procedural process delay risk but
with the repeal of that legislation such risk has been
reasonably ameliorated.
The Company places significant value on the protection
of the health, safety and wellbeing of the workforce.
A consistent approach to risk applies across Neometals’ projects
Project Risk Management
Type
Risk Areas/Causes
Controls /Mitigation Approach
Technical
Feasibility
• Geological and mining risk
• Processing risk
• IP management risk
• Focus on recycling and waste recovery
as feedstock source – ‘urban mining’
• Dedicated experienced technical
personnel inhouse.
• Apply a disciplined Technology Readiness
Level (“TRL”) and stage gating approach –
pilot/demonstration plants
Economic
Viability
• Operating Costs – reagent supply
chain, workforce attraction/
retention, inflation
• Capital Costs - inflation
• Marketing – offtake/feedstock
• Price risk – commodity prices
• Apply a disciplined TRL and stage gating
approach – AACE® Engineering Cost
Studies
• Dedicated business analysts, human
resources (“HR”) and marketing personnel
in-house
• Specialised external advisors where
necessary
Financing
• Capital markets – short selling,
dysfunctional markets.
• Geopolitical risk – government policy
changes, global conflict and turmoil
• Conservative investment policy and cash
management initiatives
• Engage specialised corporate advisors
• Dedicated corporate development and
investor relations personnel in-house
Operational
• HSE risks
• ESG landscape / requirements
• Stakeholder relation risks
• IP risks and Freedom to Operate
• Develop environmental and safety systems.
• Dedicated HR, ESG, investor relations (“IR”)
and IP personnel inhouse.
Director’s Report
Neometals Ltd | Annual Report 2024
40
Non-Executive Directors
Steven Cole
Non-executive Director/Chairman
Natalia Streltsova
Non-executive Director (resigned 27 June 2024)
Douglas Ritchie
Non-executive Director
Les Guthrie
Non-executive Director
Executive Directors
Christopher Reed
Managing Director and CEO
Jenny Purdie
Executive Director and Chief Operating Officer⁽1⁾
Other Executives
Jason Carone
Chief Financial Officer (resigned 30 June 2024)
and Company Secretary (resigned 12 July 2024)
Chris Kelsall
Chief Financial Officer (appointed 1 July 2024)
and Company Secretary (appointed 12 July 2024)
Michael Tamlin
Head of Lithium
Darren Townsend
Chief Development Officer
Merrill Gray
Head of Recycling (resigned 22 September 2023)
Christian Reiche
Head of Recycling (appointed 6 October 2023)
1. Jenny Purdie was a Non-executive Director until her appointment as Chief Operating Officer on 29 May 2024.
Key Management Personnel
The following persons were deemed to be Key Management Personnel (“KMP”) during or since the end of the
financial year for the purpose of Section 300A of the Corporations Act 2001 and unless otherwise stated were
KMP for the entire reporting period.
Remuneration Report (Audited)
Non-executive directors
The Board’s policy is to remunerate Non-executive Directors at market rates for comparable companies for time,
commitment and responsibilities. The remuneration committee on behalf of the Board determines payments to the
Non-executive Directors and reviews their remuneration annually, based on market practice, shareholder sentiment,
board workload, company cashflow capacity and corporate performance generally. Independent external advice and/
or benchmark comparisons are sought when required. The maximum aggregate amount of fees that can be paid to
Non-executive Directors is $800,000 as approved by shareholders at the Annual General Meeting on 30 November
2021. Fees for Non-executive Directors are not linked to the performance of the economic entity. However, to align
Directors’ interests with shareholder interests, the Directors are encouraged to hold shares in the Company and invited
to salary sacrifice fees for performance rights pursuant to the Company’s Performance Rights Plan (“PRP”).
General
The Remuneration Policy for employees is developed by the Remuneration Committee taking into account market
conditions and comparable salary levels for companies of a similar size and operating in similar sectors.
The Company adopted a revised PRP for its staff, executive KMP and Non-executive Directors in November 2020 and
shareholders reapproved the issue of securities under the plan in November 2020. The Board believes that the PRP will
assist the Consolidated Entity in remunerating and providing ongoing incentives to employees of the Group.
Remuneration policy for key management personnel
Remuneration Report (Audited)
Neometals Ltd | Annual Report 2024
41
The table below sets out summary information about the Consolidated Entity’s earnings and movements in shareholder
wealth for the five years to June 2024:
Relationship between the remuneration policy and company performance
30 June 2024
$
30 June 2023
$
30 June 2022
$
30 June 2021
$
30 June 2020
$
Revenue ⁽1⁾
-
-
-
-
-
Net profit / (loss) before tax⁽2⁾
(38,483,612)
(36,179,024)
(16,234,234)
20,976,747
(19,837,973)
Net profit / (loss) after tax⁽3⁾
(38,167,032)
(34,804,369)
4,360,700
16,343,172
(14,553,693)
Share price at start of year
0.48
0.91
0.48
0.16
0.21
Share price at end of year
0.09
0.48
0.91
0.48
0.16
Market capitalisation at year end
(undiluted)
53,561,687
273,606,882
496,280,638
261,768,607
87,122,706
Basic profit / (loss) per share
(0.117)
(0.063)
0.80
0.030
(0.027)
Diluted profit / (loss) per share
(0.117)
(0.063)
0.79
0.030
(0.027)
Dividends Paid
-
-
-
-
10,890,338
(1) Although one financial year has returned a net profit before tax there has been no revenues from ordinary activities. The group was
profitable in that financial year from profits booked from the sale of the Mt Marion project in 2021.
(2) Exclusive of profits resulting from discontinued operations.
(3) Inclusive of profits resulting from discontinued operations.
The rules of the PRP enable the Company to issue performance rights to eligible personnel subject to
performance and vesting conditions determined by the Company. Each performance right entitles the holder, for nil
cash consideration, to one fully paid ordinary share in the Company for every performance right offered, if the applicable
performance and vesting conditions set for that holder are satisfied.
During the financial year a total of 2,449,947 (2023: 944,284) performance rights were offered to and accepted by KMP.
Of this amount 1,566,892 performance rights are subject to relative and absolute Total Shareholder Return (“TSR”) and
other strategic hurdles, details of which can be found in the “Service agreements - performance based remuneration”
section below. Testing undertaken for the period ended 31 December 2023 resulted in zero performance rights subject
to the TSR criteria vesting. Testing undertaken for the period ended 30 June 2024 resulted in zero (2023: 3,209,743)
performance rights subject to the TSR criteria vesting. The remaining amount will be retested at 31 December 2024.
The Group’s Remuneration Policy for executive KMPs seeks to balance its desire to attract, retain and motivate high
quality personnel with the need to ensure that remuneration incentivises them to pursue growth and success
of the Company without taking undue risks and without it being excessive remuneration.
To align the interests of the executive with that of the company remuneration packages for executive KMPs contain the
following key elements:
a) Fixed Base Salary – salary, superannuation and non-monetary benefits;
b) Short Term Incentives – cash incentives applied to a maximum percentage of Fixed Base Salary and structured
against relative satisfaction (at the reasonable discretion of the Board) of certain corporate and personally related key
performance indicators of the executive.
c) Long Term Incentives – the grant of performance rights in the Company, with value capped to a maximum percentage
of Fixed Base Salary, vesting progressively while the executive remains employed, with the degree of vesting
structured against the Company’s relative and absolute TSR performance against a comparator group of companies
as well as other strategic hurdles.
The Company’s remuneration is specifically designed to encourage loyalty and longevity of employment as well as
aligning the employee’s interests with those of the Company and the creation of genuine long term sustainable value
for security holders.
All remuneration provided to KMP in the form of share based payments are valued pursuant to AASB 2 Share-based
Payment at fair value on grant date and are expensed on a pro rata basis over the vesting period of the relevant security.
Remuneration Report (Audited)
Neometals Ltd | Annual Report 2024
42
The KMP received the following amounts during the year as compensation for their services as directors
and executives of the Company and/or the Group.
Key Management Personnel Remuneration
2024
Short term employee benefits
Post
empl.
benefits
Share
based
paymnts
Termi-
nation
benefits
$
Total
$
%
remunera-
tion linked
to
perfor-
mance
Salary
& fees
$
Bonus
$
Non-
Mone-
tary(1)
$
Other (2)
$
Super-
annuation
$
Perfor-
mance
rights
$
Non-Executive Directors
S. Cole
98,198
-
-
-
10,802
80,000
-
189,000
-
N. Streltsova
60,811
-
-
-
6,689
45,000
-
112,500
-
D. Ritchie
60,811
-
-
-
6,689
45,000
-
112,500
-
L. Guthrie
90,090
-
-
-
9,910
12,500
-
112,500
-
309,910
-
-
-
34,090
182,500
-
526,500
-
Executive Directors
C. Reed
622,601
-
14,247
5,587
27,399 275,321
-
945,155
29
J. Purdie⁽3⁾
68,798
-
-
1,946
7,568
60,000
-
138,312
-
691,399
-
14,247
7,533
34,967
335,321
-
1,083,467
-
Other Executives
M. Tamlin
392,601
-
22,050
(14,597)
27,399
118,429
-
545,882
22
J. Carone
392,500
-
14,477
(503)
27,500
(148,687)
-
285,287
-
D. Townsend
392,601
-
14,327
(5,335)
27,399
118,903
-
547,895
22
M. Gray⁽4⁾
105,119
-
-
(23,080)
13,699
(34,077)
114,869
176,530
-
C. Reiche⁽4⁾
282,066
-
-
20,434
20,549
14,030
-
337,079
4
1,564,887
-
50,854
(23,081)
116,546
68,598
114,869
1,892,673
-
Total
2,566,196
-
65,101
(15,548)
185,603
586,419
114,869
3,502,640
-
Remuneration Report (Audited)
Neometals Ltd | Annual Report 2024
43
Key Management Personnel Remuneration (Cont.)
2023
Short term employee benefits
Post
empl.
benefits
Share
based
paymnts
Termi-
nation
benefits
$
Total
$
%
remu-
neration
linked to
perfor-
mance
Salary
& fees
$
Bonus
$
Non-
Monetary(1)
$
Other ⁽2⁾
$
Super-
annuation
$
Performance
rights
$
Non-Executive Directors
S. Cole
135,747
-
-
-
14,253
60,000
-
210,000
-
N. Streltsova
72,398
-
-
-
7,602
45,000
-
125,000
-
D. Ritchie
72,398
-
-
-
7,602
45,000
-
125,000
-
J. Purdie
72,398
-
-
-
7,602
45,000
-
125,000
-
L. Guthrie
104,977
-
-
-
11,023
9,000
-
125,000
-
457,918
-
-
-
48,082
204,000
-
710,000
-
Executive Directors
C. Reed
624,708
146,250
30,397
67,182
25,292
351,132
-
1,244,961
40
624,708
146,250
30,397
67,182
25,292
351,132
-
1,244,961
-
Other Executives
M. Tamlin
394,708
75,600
46,701
1,457
25,292
162,274
-
706,032
34
J. Carone
392,500
110,250
31,495
(44,664)
27,500
153,566
-
670,647
39
D. Townsend
394,708
126,000
29,461
(1,582)
25,292
159,822
-
733,701
39
M. Gray⁽3⁾
398,208
104,816
-
18,968
25,292
34,077
-
581,361
24
1,580,124
416,666
107,657
(25,821)
103,376
509,739
-
2,691,741
-
Total
2,662,750
562,916
138,054
41,361
176,750
1,064,871
-
4,646,702
-
(1) Relates to fringe benefits received by key management personnel
(2) Other short-term employee benefits relates to annual and long service leave.
(3) Jenny Purdie was appointed Chief Operating Officer on 29 May 2024.
(4) In September 2023, Merrill Gray resigned from the position of Head of Recycling. In October 2023, Christian Reiche was
appointed Head of Recycling.
Remuneration Report (Audited)
Neometals Ltd | Annual Report 2024
44
Service Agreements - Performance Based Remuneration
The KMP of the Company, other than Non-executive Directors, are employed under service agreements.
A summary of performance conditions for relevant KMP are detailed below:
Incentive Based Remuneration
Short Term Incentive
Each financial year during the term of his service
agreement the Board, at its sole discretion, may
award the KMP a cash bonus up to 35% of the
KMP’s annual salary package ($420,000 inclusive
of super-annuation for 2023-24). The STI for
2023-24 was set at a maximum of $147,000 of
which 0% or nil was acknowledged and agreed
by the CEO and Mr J Carone. The basis for
calculating the STI will be a range of criteria
including both the KMP’s personal performance
and the Company’s sustainability and financial
performance/position and share price.
Long Term Incentive
Each financial year during the term of his service
agreement the KMP is entitled to receive
performance rights granted under the Company’s
Performance
Rights
Plan.
The
number
of
performance rights to which the KMP may be
granted is based on the following calculation
and vesting of the performance rights are subject
to further criteria which are also set out below.
Calculation of potential entitlement to
performance rights
Where: P is the potential performance rights entitlement
S is the KMP’s annual salary package for the
applicable period
VWAP is the 30 day volume weighted average price of
ordinary shares in Neometals Ltd for the period ended
30 June of the preceding financial year.
P=
x
40
100
S
VWAP
Mr. J. Carone
Chief Financial Officer / Company Secretary
Term: No defined term
Termination: 3 months notice period and 3
months termination payment
Incentive Based Remuneration
Short Term Incentive
Each financial year during the term of his service
agreement the Board, at its sole discretion, may
award the KMP a cash bonus of up to 50% of the
KMP’s annual salary package ($650,000 inclusive
of superannuation for 2023-24). The STI for 2023-24
was set at a maximum of $325,000 of which 0% or
nil was acknowledged and agreed by the Board and
Mr C Reed. The basis for calculating the STI will be a
range of criteria including both the KMP’s personal
performance and the Company’s sustainability and
financial performance/position and share price.
Long Term Incentive
Each financial year during the term of his service
agreement the KMP is entitled to receive
performance rights granted under the Company’s
Performance Rights Plan. The maximum number
of performance rights to which the KMP may be
granted is based on the following calculation and
vesting of the performance rights are subject
to further criteria which are also set out below,
as approved by shareholders
Calculation of potential entitlement to
performance rights
Where: P is the potential performance rights entitlement
S is the KMP’s annual salary package for the
applicable period
VWAP is the 60 day volume weighted average price of
ordinary shares in Neometals Ltd for the period ended
30 June of the preceding financial year.
P=
x
50
100
S
VWAP
Mr. C. Reed
Managing Director
Term: Expiry date of 30 June 2026
Termination: 6 months by executive
Remuneration Report (Audited)
Neometals Ltd | Annual Report 2024
45
Incentive Based Remuneration
Short Term Incentive
Each financial year during the term of her service
agreement the Board, at its sole discretion, may
award the KMP a cash bonus of up to 35% of the
KMP’s annual salary package (pro rata based on
$500,000 inclusive of superannuation for 2023-24).
The STI for 2023-24 was set at a maximum of
$175,000 of which 0% or nil was acknowledged
and agreed by the CEO and Dr J Purdie. The basis
for calculating the STI will be a range of criteria
including both the KMP’s personal performance
and the Company’s sustainability and financial
performance/position and share price.
Long Term Incentive
Each financial year during the term of her service
agreement the KMP is entitled to receive
performance rights granted under the Company’s
Performance Rights Plan. The maximum number
of performance rights to which the KMP may be
granted is based on the following calculation and
vesting of the performance rights are subject to
further criteria which are also set out below, as
approved by shareholders.
Calculation of potential entitlement to
performance rights
Where: P is the potential performance rights entitlement
S is the KMP’s annual salary package for the
applicable period
VWAP is the 30 day volume weighted average price of
ordinary shares in Neometals Ltd for the period ended
30 June of the preceding financial year.
P=
x
35
100
S
VWAP
Dr. J. Purdie
Chief Operating Officer
Term: Expiring 31 December 2024
Termination: 3 months
Incentive Based Remuneration
Short Term Incentive
Each financial year during the term of his service
agreement the Board, at its sole discretion, may
award the KMP a cash bonus of up to 40% of the
KMP’s annual salary package ($420,000 inclusive
of superannuation for 2023-24). The STI for 2023-24
was set at a maximum of $168,000 of which 0% or
nil was acknowledged and agreed by the CEO and
Mr M Tamlin. The basis for calculating the STI will be
a range of criteria including both the KMP’s personal
performance and the Company’s sustainability and
financial performance/position and share price.
Long Term Incentive
Each financial year during the term of his
service agreement the KMP is entitled to receive
performance rights granted under the Company’s
Performance Rights Plan. The maximum number
of performance rights to which the KMP may be
granted is based on the following calculation and
vesting of the performance rights are subject
to further criteria which are also set out below,
as approved by shareholders.
Calculation of potential entitlement to
performance rights
Where: P is the potential performance rights entitlement
S is the KMP’s annual salary package for the
applicable period
VWAP is the 30 day volume weighted average price of
ordinary shares in Neometals Ltd for the period ended
30 June of the preceding financial year.
P=
x
35
100
S
VWAP
Mr. M. Tamlin
Head of Lithium
Term: No defined term
Termination: 6 months
Service Agreements - Performance Based Remuneration (Cont.)
Remuneration Report (Audited)
Neometals Ltd | Annual Report 2024
46
Service Agreements - Performance Based Remuneration (Cont.)
Incentive based remuneration
Short Term Incentive
Each financial year during the term of his service
agreement the Board, at its sole discretion, may
award the KMP a cash bonus of up to 40% of the
KMP’s annual salary package ($420,000 inclusive
of superannuation for 2023-24). The STI for 2023-
24 was set at a maximum of $168,000 of which
0% or nil was acknowledged and agreed by the
CEO and Mr D Townsend. The basis for calculating
the STI will be a range of criteria including both the
KMP’s personal performance and the Company’s
sustainability and financial performance/position
and share price.
Long Term Incentive
Each financial year during the term of his service
agreement the KMP is entitled to receive
performance rights granted under the Company’s
Performance Rights Plan. The maximum number
of performance rights to which the KMP may be
granted is based on the following calculation and
vesting of the performance rights are subject to
further criteria which are also set out below, as
approved by shareholders.
Calculation of potential entitlement to
performance rights
Where: P is the potential performance rights entitlement
S is the KMP’s annual salary package for the
applicable period
VWAP is the 30 day volume weighted average price of
ordinary shares in Neometals Ltd for the period ended
30 June of the preceding financial year.
P=
x
35
100
S
VWAP
Mr. D. Townsend
Chief Development Officer
Term: No defined term
Termination: 6 months
Incentive based remuneration
Short Term Incentive
Each financial year during the term of her service
agreement the Board, at its sole discretion, may
award the KMP a cash bonus of up to 33% of the
KMP’s annual salary package ($423,500 inclusive
of superannuation for 2023-24). The STI for 2023-
24 was set at a maximum of $139,755 representing
approximately 33% of the annual base salary
package of which 0% or nil was acknowledged
and agreed by the CEO and Ms M. Gray. The basis
for calculating the STI will be a range of criteria
including both the KMP’s personal performance
and the Company’s sustainability and financial
performance/position and share price.
Long Term Incentive
Each financial year during the term of her service
agreement the KMP is entitled to receive
performance rights granted under the Company’s
Performance Rights Plan. The maximum number
of performance rights to which the KMP may be
granted is based on the following calculation and
vesting of the performance rights are subject to
further criteria which are also set out below, as
approved by shareholders.
Calculation of potential entitlement to
performance rights
Where: P is the potential performance rights entitlement
S is the KMP’s annual salary package for the
applicable period
VWAP is the 30 day volume weighted average price of
ordinary shares in Neometals Ltd for the period ended
30 June of the preceding financial year.
P=
x
33
100
S
VWAP
Ms. M. Gray
Head of Recycling
Term: No defined term
Termination: 3 months
Remuneration Report (Audited)
Neometals Ltd | Annual Report 2024
47
Incentive based remuneration
Short Term Incentive
Each financial year during the term of his service
agreement the Board, at its sole discretion, may
award the KMP a cash bonus of up to 33% of the
KMP’s annual salary package ($420,000 inclusive
of superannuation for 2023-24). The STI for 2023-
24 was set at a maximum of $138,600 representing
approximately 33% of the annual base salary
package of which 0% or nil was acknowledged and
agreed by the CEO and Mr C. Reiche. The basis
for calculating the STI will be a range of criteria
including both the KMP’s personal performance
and the Company’s sustainability and financial
performance/position and share price.
Long Term Incentive
Each financial year during the term of his service
agreement the KMP is entitled to receive
performance rights granted under the Company’s
Performance Rights Plan. The maximum number
of performance rights to which the KMP may be
granted is based on the following calculation and
vesting of the performance rights are subject to
further criteria which are also set out below, as
approved by shareholders.
Calculation of potential entitlement to
performance rights
Where: P is the potential performance rights entitlement
S is the KMP’s annual salary package for the
applicable period
VWAP is the 30 day volume weighted average price of
ordinary shares in Neometals Ltd for the period ended
30 June of the preceding financial year.
P=
x
33
100
S
VWAP
Mr. C. Reiche
Head of Recycling
Term: No defined term
Termination: 3 months
Service Agreements - Performance Based Remuneration (Cont.)
Remuneration Report (Audited)
Neometals Ltd | Annual Report 2024
48
Criteria
The grant of Performance Rights is designed
to reward long term sustainable business
performance measured over a three year period
with
an
opportunity
for
the
performance
conditions to be re-measured six months later
should they not vest at the first vesting date.
The KMP’s entitlement to the performance rights
is dependent on 3 criteria:
a) Tranche 1 – Relative TSR (issued during
financial years ending 2022-2024)
The performance conditions of 40% of
Performance Rights will be measured as
at each vesting date by comparing the
Company’s total shareholder return (TSR)
with that of a comparator group of resource
companies over the relevant period.
The Performance Rights will vest depending
on the Company’s percentile ranking within
the
comparator
group
on
the
relevant
Vesting Date as follows:
• If the Company ranks below the 50th percentile,
none of the Performance Rights will vest.
• If the Company ranks at the 50th percentile,
50% of the Performance Rights will vest.
• For each 1% ranking at or above the 51st
percentile, an additional 2% of the Performance
Rights will vest, with 100% vesting where the
Company ranks at or above the 75th percentile.
b) Tranche 2 – Absolute TSR (issued during
financial years ending 2022-2024)
The performance conditions of 40% of
Performance Rights will be measured as
at each vesting date by calculating the
Company’s TSR calculated over the period
commencing
on
the
Comparator
Start
Date and ending on the relevant Vesting Date
(Absolute TSR).
The Performance Rights will vest depending
on the Company’s Absolute TSR on the
relevant Vesting Date as follows:
• If the Company’s Absolute TSR is less than
15%, none of the Performance Rights will vest.
• If the Company’s Absolute TSR is 15%, 50%
of the Performance Rights will vest.
• For each additional 1% TSR above 15%
Absolute TSR, an additional 10% of the
Performance Rights will vest, with 100%
vesting where the Company’s Absolute TSR
is at or above 20%.
c) Tranche 3 – Business plan (issued during
financial years ending (2022-2024)
The performance conditions of 20% of
Performance Rights will be measured as at
each Vesting Date as follows:
10% will vest if the combined market
capitalisation of Neometals and any entity
demerged from the Neometals Group and
separately listed on the ASX would meet the
threshold for entry into the ASX/S&P 200 Index.
10% to vest at the discretion of the Board
based on the overall achievement by NMT
of its strategic objectives (both financial
and non-financial) under the leadership of
the CEO and in delivering value to NMT’s
shareholders and broader stakeholders.
Remuneration Report (Audited)
Neometals Ltd | Annual Report 2024
49
Criteria (Cont.)
The comparator group adopted by the company for LTI
granted during FY 2022 (vest FY 2024) is as follows:
• Albermale
(NYSE: ALB)
• Global X Lithium ETF
(NYSE Arca: LIT)
• TNG Ltd
(ASX: TNG)
• S&P ASX Small Resources Index
(ASXR: ASX)
• AMG Metallurgical Group NV
(AMS: AMG)
• S&P ASX 300
(ASX: XKO)
• Iluka Resources Limited
(ASX: ILU)
• Lithium Australia NL
(ASX: LIT)
• Bushveld Minerals
(LSE: BMN)
• Standard Lithium Inc.
(TSX: SLI)
• Umicore Belgium
(BSE:UMI)
The comparator group adopted by the company for LTI
granted during FY 2023 (vest FY 2025) is as follows:
• Albermale
(NYSE: ALB)
• Global X Lithium ETF
(NYSE: LIT)
• TNG Ltd
(ASX: TNG)
• S&P ASX 300
(ASX: XKO)
• AMG Metallurgical Group NV
(AMS: AMG)
• Li-Cycle Holdings Corp
(NYSE:LICY)
• Iluka Resources Limited
(ASX: ILU)
• Umicore Belgium
(BSE:UMI)
• Bushveld Minerals
(LSE: BMN)
• Standard Lithium Inc.
(TSX: SLI)
• American Battery Technology Company (OTC:ABML)
The comparator group adopted by the company for LTI
granted during FY 2024 (vest FY 2026) is as follows:
• Albermale
(NYSE: ALB)
• Global X Lithium ETF
(NYSE: LIT)
• TNG Ltd
(ASX: TNG)
• S&P ASX 300
(ASX: XKO)
• AMG Metallurgical Group NV
(AMS: AMG)
• Li-Cycle Holdings Corp
(NYSE:LICY)
• Iluka Resources Limited
(ASX: ILU)
• Umicore Belgium
(BSE:UMI)
• Bushveld Minerals
(LSE: BMN)
• Standard Lithium Inc.
(TSX: SLI)
• American Battery Technology Company (OTC:ABML)
Performance rights granted to the KMP have
a vesting period of 3 years from grant date
and will lapse on the KMP ceasing to be an
employee of the Group prior to the vesting date.
The
Company
provides
the
KMP
with
performance based incentives in order to
incentivise KMP to pursue strategies that
are aligned with the overall business strategy
and the interests of the shareholders. Where
deemed appropriate the Company has set
specific
Key
Performance
Indicators
as
performance criteria for staff that have a
direct
role/responsibility
in
achieving
a
specific outcome. To ensure that KMP are
also
incentivised
to
pursue
longer
term
strategies that increase shareholder wealth
a portion of the KMP’s remuneration is linked
to a “comparative TSR model” which links
the level of the KMP remuneration to the
Company’s performance against a group of
comparable ASX listed entities, using Total
Shareholder Return as the basis of comparison.
KMP are also issued with performance rights
with service conditions as vesting criteria which
assist the company retain staff as well as aligning
the interests of the KMP with shareholders.
The Company has deemed the issue of service
based performance rights as an appropriate
form of remuneration due to the uncertain nature
of the Group’s business, that is, mineral
exploration, mining and developing new mineral
processing technologies.
Remuneration Report (Audited)
Neometals Ltd | Annual Report 2024
50
Performance rights granted to key management personnel
The following tables summarises information relevant to the current financial year in relation to the grant of performance
rights to KMP as part of their remuneration. Performance rights are issued by Neometals Ltd.
Performance Rights Issued as Part of KMP Remuneration
Name
During the Financial Year
Grant date
No. granted
No. vested
Fair value at
grant date ⁽3⁾
$
Earliest
exercise
date
Consider-
ation on
payable
on exercise
KMP:
C. Reed⁽1⁾
11/09/2023
571,512
-
204,030
30/06/2026
-
J. Carone⁽1⁾
11/09/2023
314,759
-
112,369
30/06/2026
-
M. Tamlin⁽1⁾
11/09/2023
275,414
-
98,323
30/06/2026
-
D. Townsend⁽1⁾
11/09/2023
275,414
-
98,323
30/06/2026
-
M. Gray⁽1⁾⁽4⁾
11/09/2023
261,840
-
93,477
30/06/2026
-
C. Reiche⁽1⁾⁽4⁾
19/01/2024
259,676
-
92,704
30/06/2026
-
N. Streltsova⁽2⁾
12/07/2023
91,175
91,175
45,000
30/06/2024
-
D. Ritchie⁽2⁾
12/07/2023
91,175
91,175
45,000
30/06/2024
-
S. Cole⁽2⁾
12/07/2023
162,089
162,089
80,000
30/06/2024
-
J. Purdie⁽2⁾
12/07/2023
121,567
121,567
60,000
30/06/2024
-
L. Guthrie⁽2⁾
12/07/2023
25,326
25,326
12,500
30/06/2024
-
Total
2,449,947
491,332
941,726
-
(1) The number of performance rights that will actually vest, if any, is determined by the Company’s performance based on
Neometals relative and absolute TSR compared to the comparative group of companies over a 3 year period and Business Plan
strategic objectives.
(2) These Non-executive Directors have forgone Directors Fees for performance rights pursuant to the company’s PRP.
(3) These values have been calculated using the Monte Carlo valuation method.
(4) In September 2023, Merrill Gray resigned from the position of Head of Recycling. In October 2023, Christian Reiche was appointed
Head of Recycling.
Remuneration Report (Audited)
Neometals Ltd | Annual Report 2024
51
Details of performance rights held by KMP and of shares issued during the financial year as a result of the vesting of
performance rights:
Performance Rights Issued as Part of KMP Remuneration (Cont.)
2024
Balance at
01/07/23
Grant
date
Granted
Fair value
of rights at
grant date
⁽3⁾
Forfeited/
lapsed
during the
financial
year
Ordinary
shares
issued on
exercise of
rights
Balance at
30/06/2024
(4)
Vested
during
the finan-
cial year
No.
No.
$
No.
No.
No.
No.
C. Reed⁽1⁾
2,470,707
11/09/2023
571,512
204,030
(165,675)
(1,491,079)
1,385,465
-
J. Carone⁽1⁾
1,046,859
11/09/2023
314,759
112,369
(133,211)
(532,844)
695,563
-
M. Tamlin⁽1⁾
1,144,568
11/09/2023
275,414
98,323
(151,134)
(604,536)
664,312
-
D. Townsend⁽1⁾
1,115,503
11/09/2023
275,414
98,323
(145,321)
(581,284)
664,312
-
M. Gray⁽1⁾⁽5⁾
120,554 11/09/2023
261,840
94,524
(382,394)
-
-
-
C. Reiche⁽1⁾⁽5⁾
-
19/01/2024
259,676
93,743
-
-
259,676
-
N. Streltsova⁽2⁾
40,875 11/09/2023
91,175
92,704
-
(40,875)
91,175
91,175
D. Ritchie⁽2⁾
40,875 11/09/2023
91,175
45,000
-
(40,875)
91,175
91,175
S. Cole⁽2⁾
54,499
11/09/2023
162,089
80,000
-
(54,499)
162,089
162,089
J. Purdie⁽2⁾
40,875
11/09/2023
121,567
60,000
-
(40,875)
121,567
121,567
L. Guthrie⁽2⁾
8,175
11/09/2023
25,326
12,500
-
(8,175)
25,326
25,326
Total
6,083,490
2,449,947
941,726
(977,735)
(3,395,042)
4,160,660
491,332
(1) The number of performance rights that will actually vest, if any, is determined by the Company’s performance based on Neometals
relative and absolute TSR compared to the comparative group of companies over a 3 year period and Business Plan strategic
objectives.
(2) Under the Performance Rights Plan, Non-Executive Directors were invited to forgo part of their fees for their services in exchange
for performance rights.
(3) These values have been calculated using the monte carlo valuation method.
(4) Includes vested performance rights that have not been exercised at 30 June 2024.
(5) In September 2023, Merrill Gray resigned from the position of Head of Recycling. In October 2023, Christian Reiche was appointed
Head of Recycling.
Remuneration Report (Audited)
Neometals Ltd | Annual Report 2024
52
Performance Rights Issued as Part of KMP Remuneration (Cont.)
2023
Balance at
1/07/2022
Grant
date
Granted
Fair value
of rights at
grant date
⁽3⁾
For-
feited/
lapsed
during
the finan-
cial year
Ordinary
shares
issued on
exercise of
rights
Balance at
30/06/2023
⁽4⁾
Vested
during the
financial
year
No.
No.
$
No.
No.
No.
No.
KMP:
C. Reed⁽1⁾
3,463,824
5/09/2022
239,904
276,034
(246,604)
(986,417)
2,470,707
1,491,079
J. Carone⁽1⁾
1,395,275
5/09/2022
144,919
166,744
(98,667)
(394,668)
1,046,859
532,844
M. Tamlin⁽1⁾
1,577,475
5/09/2022
126,804
145,901
(111,942)
(447,769)
1,144,568
604,536
D. Townsend⁽1⁾
1,526,883
5/09/2022
126,804
145,901
(107,637)
(430,547)
1,115,503
581,284
M. Gray⁽1⁾
-
5/09/2022
120,554
138,709
-
-
120,554
-
N. Streltsova⁽2⁾
55,450
4/08/2022
40,875
45,000
-
(55,450)
40,875
40,875
D. Ritchie⁽2⁾
55,450
4/08/2022
40,875
45,000
-
(55,450)
40,875
40,875
S. Cole⁽2⁾
61,611
4/08/2022
54,499
60,000
-
(61,611)
54,499
54,499
J. Purdie⁽2⁾
55,450
4/08/2022
40,875
45,000
-
(55,450)
40,875
40,875
L. Guthrie⁽2⁾
11,090
4/08/2022
8,175
9,000
-
(11,090)
8,175
8,175
Total
8,202,508
944,284
1,077,289
(564,850)
(2,498,452)
6,083,490
3,395,042
(1) The number of performance rights that will actually vest, if any, is determined by the Company’s performance based on
Neometals relative and absolute TSR compared to the comparative group of companies over a 3 year period and Business Plan
strategic objectives.
(2) Under the Performance Rights Plan, Non-Executive Directors were invited to sacrifice part of their fees for their services in
exchange for performance rights.
(3) These values have been calculated using the monte carlo valuation method.
(4) Includes vested performance rights that have not been exercised at 30 June 2023.
The performance rights granted entitle the grantee to one fully paid ordinary share in Neometals Ltd for nil cash
consideration on satisfaction of the vesting criteria.
Remuneration Report (Audited)
Neometals Ltd | Annual Report 2024
53
Other transactions and balances with key management personnel
There were no loans made to key management personnel or their personally related parties during the current or prior
financial year. There were no other transactions with key management personnel.
Use of remuneration consultants
During the year no remuneration consultants were used in relation to the company’s Performance Rights Plan. No
remuneration consultants were used to provide insight into general KMP remuneration, however a subscription
for Remsmart was purchased to provide industry benchmarking for Board and executive remuneration for a cost
of $1,350.
Auditor’s Independence Declaration
The auditor’s independence declaration is included on page 58 of the Annual Report.
Signed in accordance with a resolution of directors made pursuant to s.298(2) of the Corporations Act 2001.
On behalf of the directors of Neometals Ltd.
Mr. Christopher Reed
Managing Director
West Perth, WA
26 September 2024
Remuneration Report (Audited)
Neometals Ltd | Annual Report 2024
54
Independent Auditor’s Report
Independent Auditor’s Report
Deloitte Touche Tohmatsu
ABN 74 490 121 060
Tower 2
Brookfield Place
123 St Georges Terrace
Perth WA 6000
GPO Box A46
Perth WA 6837 Australia
Tel: +61 8 9365 7000
Fax: +61 8 9365 7001
www.deloitte.com.au
Neometals Ltd | Annual Report 2024
55
Independent Auditor’s Report
Neometals Ltd | Annual Report 2024
56
Independent Auditor’s Report
Neometals Ltd | Annual Report 2024
57
Independent Auditor’s Report
Neometals Ltd | Annual Report 2024
58
Auditor’s Independence Declaration
Auditor’s Independence Report
Deloitte Touche Tohmatsu
ABN 74 490 121 060
Tower 2
Brookfield Place
123 St Georges Terrace
Perth WA 6000
GPO Box A46
Perth WA 6837 Australia
Tel: +61 8 9365 7000
Fax: +61 8 9365 7001
www.deloitte.com.au
Neometals Ltd | Annual Report 2024
59
The directors declare that:
(a) in the directors’ opinion, there are reasonable grounds to believe that the company will be able to pay
its debts as and when they become due and payable;
(b) the attached financial statements are in compliance with International Financial Reporting Standards
as stated in note 2 to the financial statements;
(c) in the directors’ opinion, the attached financial statements and notes thereto are in accordance with the
Corporations Act 2001, including compliance with accounting standards and giving a true and fair view
of the financial position and performance of the consolidated entity; and
(d) the consolidated entity disclosure statement is true and correct; and
(e) the directors have been given the declarations required by s.295A of the Corporations Act 2001.
Signed in accordance with a resolution of the directors made pursuant to s. 298(2) and s.295(5) of the
Corporations Act 2001.
On behalf of the directors of Neometals Ltd,
Mr. Christopher Reed
Managing Director
West Perth, WA
26 September 2024
Directors’ Declaration
Director’s Declaration
Neometals Ltd | Annual Report 2024
60
Continuing operations
Note
2024
$
2023
$
(Represented*)
Interest and other income
5(a)
544,119
1,061,585
Employee expenses
5(b)
(7,900,995)
(11,155,009)
Occupancy expenses
(209,279)
(177,323)
Finance costs
(102,305)
(26,007)
Other expenses
5(b)
(7,840,342)
(10,392,034)
Marketing expenses
(216,297)
(442,359)
Foreign exchange (loss)/gain
(162,029)
61,466
Impairment expense
5(b)
(12,820,053)
(3,989,748)
Fair value adjustment of non-listed investments
11
(721,200)
-
Share of loss in associate
22
(438,965)
(3,412,514)
Share of loss in joint ventures
21(ii, iii and iv)
(8,616,266)
(7,298,801)
Loss on disposal of subsidiary
21(iv)
-
(212,473)
Loss before income tax
(38,483,612)
(35,983,217)
Income tax benefit
7
316,580
1,374,655
Loss for the year from continuing operations
(38,167,032)
(34,608,562)
Discontinued operations
Loss for the year from discontinuing operations
6
(30,945,885)
(195,807)
(Loss)/profit for the year from continuing and
discontinuing operations
(69,112,917)
(34,804,369)
Other comprehensive income
-
-
Total comprehensive (loss)/profit for the year
(69,112,917)
(34,804,369)
Loss per share
From continuing operations:
Basic (cents per share)
18
(6.43)
(6.27)
Diluted (cents per share)
18
(6.43)
(6.27)
From continuing and discontinued operations:
Basic (cents per share)
18
(11.65)
(6.30)
Diluted (cents per share)
18
(11.65)
(6.30)
Financial
Statements
05
Consolidated Statement of Profit or Loss and Other Comprehensive Income
For the year ended 30 June 2024
The consolidated statement of profit or loss and other comprehensive income should be read in conjunction with the
accompanying notes. *Refer to note 6 for details of restatement.
Financial Statements
Neometals Ltd | Annual Report 2024
61
Current assets
Note
2024
$
2023
$
Cash and cash equivalents
27 (a)
9,103,833
24,438,695
Trade and other receivables
10
967,858
2,031,604
Other financial assets
11
543,089
763,650
Total current ordinary assets
10,614,780
27,233,949
Assets classified as held for sale
6
20,214,451
-
Total current assets
30,829,231
27,233,949
Non-current assets
Exploration and evaluation expenditure
12
-
47,364,711
Intangibles
285,318
945,994
Investments in joint ventures
21
2,736,164
5,449,045
Investment in associate
22
2,639,437
9,677,933
Other financial assets
11
4,813,803
5,298,971
Right of use assets
20
409,026
895,690
Property, plant and equipment
13
421,485
877,269
Total non-current assets
11,305,233
70,509,613
Total assets
42,134,464
97,743,562
Current liabilities
Trade and other payables
14
340,789
2,190,866
Provisions
15
954,044
1,021,613
Lease liability
20
128,296
285,625
Liabilities associated with the assets classified as held for sale
6
214,451
-
Total current liabilities
1,637,580
3,498,104
Non-current liabilities
Provisions
15
39,132
72,685
Lease liability
20
3,982,625
652,049
Total non-current liabilities
4,021,757
724,734
Total liabilities
5,659,337
4,222,838
Net assets
36,475,127
93,520,724
Equity
Issued capital
16
158,706,319
146,234,171
Reserves
17
2,290,951
10,835,122
Accumulated losses
(124,522,143)
(63,548,569)
Total equity
36,475,127
93,520,724
Consolidated Statement of Financial Position
For the year ended 30 June 2024
Financial Statements
Neometals Ltd | Annual Report 2024
62
Current assets
Issued
Capital
$
Investment
revaluation
reserve
$
Other
equity
reserve
$
Share
based
payments
reserve
$
Accumulated
losses
$
Total
$
Balance at 30/06/22
145,564,286
1,019,637
300,349
8,455,957
(28,744,200)
126,596,029
Loss for the period
-
-
-
-
(34,804,369)
(34,804,369)
Total comprehensive
income for the period
-
-
-
-
(34,804,369)
(34,804,369)
Recognition of share-based
payments (see note 9 and 17)
-
-
-
1,747,438
-
1,747,438
Recognition of shares issued
under performance rights plan
688,259
-
-
(688,259)
-
-
Share issue costs, net of tax
(18,374)
-
-
-
-
(18,374)
Balance at 30/06/23
146,234,171
1,019,637
300,349
9,515,136
(63,548,569)
93,520,724
Loss for the period
-
-
-
-
(69,112,917)
(69,112,917)
Total comprehensive
income for the period
-
-
-
-
(69,112,917)
(69,112,917)
Issue of share capital
12,131,024
-
-
-
-
12,131,024
Recognition of share-based
payments (see note 9 and 17)
-
-
-
894,935
-
894,935
Recognition of shares issued
under performance rights plan
1,299,763
-
-
(1,299,763)
-
-
Share issue costs, net of tax
(958,639)
-
-
-
-
(958,639)
Historical reserve clearing
(see note 17)
-
(1,019,637)
(300,349)
(6,819,357)
8,139,343
-
Balance at 30/06/24
158,706,319
-
-
2,290,951
(124,522,143)
36,475,127
Consolidated Statement of Changes in Equity
For the year ended 30 June 2024
This consolidated statement of changes in equity should be read in conjunction with the accompanying notes.
Financial Statements
Neometals Ltd | Annual Report 2024
63
This consolidated statement of cash flows should be read in conjunction with the accompanying notes.
*Refer to note 6 for details of re-presentation.
Cash flows from operating activities
Note
2024
$
2023
$
(Re-presented*)
Research and development refund
908,332
-
Payments to suppliers and employees
(14,245,712)
(20,311,512)
Payments to suppliers – discontinued operations
(176,178)
(87,030)
Net cash used in operating activities
27(b)
(13,513,558)
(20,398,542)
Cash flows from investing activities
Payments for property, plant & equipment
(29,914)
(135,832)
Payments for property, plant & equipment – discontinued
operations
(18,830)
(299,698)
Payments for intellectual property
(96,205)
(159,198)
Payments for exploration and evaluation
(361,429)
(1,437,993)
Payments for exploration and evaluation – discontinued
operations
(3,495,083)
(4,389,397)
Interest received
517,798
1,050,819
Payments for purchase of investments
(60,000)
(425,838)
Receipts from sale of investments
134,060
1,215,791
Investment in associate
-
(694,515)
Investment in joint ventures
21
(8,703,799)
(9,656,039)
Net cash used in by investing activities
(12,113,402)
(14,931,900)
Cash flows from financing activities
Share issue costs
(958,638)
(18,374)
Capital raising proceeds
12,131,024
-
Amounts paid for security deposits
(455,707)
-
Lease payments
(172,780)
(287,190)
Lease payments – discontinued operations
(114,764)
(60,664)
Interest and other finance costs paid
(64,530)
(26,999)
Net cash generated by / (used in) financing activities
10,364,605
(393,227)
Net (decrease) in cash and cash equivalents
(15,262,355)
(35,723,669)
Cash and cash equivalents at the beginning of the
financial year
24,438,695
60,158,159
Effect of exchange rates on cash balances
(48,563)
4,205
Cash and cash equivalents
9,127,777
24,438,695
Less: cash and cash equivalents at the end of the financial
year – held for sale
(23,944)
-
Cash and cash equivalents at the end of the financial
year
27(a)
9,103,833
24,438,695
Consolidated Statement of Cash Flows
For the year ended 30 June 2024
Financial Statements
Neometals Ltd | Annual Report 2024
64
1
General information
2
Material accounting policies
3
Critical accounting judgments and key sources of estimation uncertainty
4
Parent entity disclosure
5
Profit / loss for the year continuing operations
6
Discontinued operations
7
Income taxes
8
Key management personnel compensation
9
Share based payments
10
Trade and other receivables
11
Other financial assets
12
Exploration and evaluation expenditure
13
Property, plant and equipment
14
Trade and other payables
15
Provisions
16
Issued capital
17
Reserves
18
Earnings per share
19
Commitments for expenditure
20
Leases
21
Joint arrangements
22
Investment in associates
23
Subsidiaries
24
Segment information
25
Related party disclosures
26
Auditor’s remuneration
27
Notes to the statement of cash flows
28
Financial instruments
29
Contingent liabilities
30
Events after the reporting period
Index: Notes to the Consolidated Financial Statements
Neometals Ltd | Annual Report 2024
65
1. General Information
Neometals Ltd is a limited public company incorporated
in Australia and listed on the Australian Securities Exchange
and AIM. The principal activities of the Consolidated Entity
are the development and commercialisation of sustainable
processing solutions that recycle and recover critical materials
from high-value waste streams. Neometals Ltd is the ultimate
parent.
Registered office and principal place of business
Level 1, 1292 Hay St, West Perth WA 6005
2. Material Accounting Policies
Statement of compliance
These financial statements are general purpose financial
statements which have been prepared in accordance with
the Corporations Act 2001, Accounting Standards and
Interpretations, and complies with other requirements
of the law. The financial statements comprise the
consolidated financial statements of the Consolidated
Entity, comprising Neometals Ltd and its controlled entities.
For the purpose of preparing the financial statements the
consolidated entity is a for-profit entity.
Accounting
Standards
include
Australian
Accounting
Standards.
Compliance
with
Australian
Accounting
Standards ensures that the financial statements and notes
of the Company and the Group comply with International
Financial Reporting Standards (“IFRS”).
The financial statements were authorised for issue by the
directors of Neometals Ltd on 26 September 2024.
Basis of preparation
The financial report has been prepared on a going concern
basis. These accounting policies are consistent with
Australian Accounting Standards and with IFRS.
The Group has adopted all of the new and revised
Standards and Interpretations issued by the Australian
Accounting Standards Boards (“AASB”) that are relevant to its
operations and effective for the current reporting period begin-
ning 1 July 2023.
The financial report has been prepared on the basis of
historical cost except for the revaluation of certain non-
financial assets and financial instruments. Cost is based
on the fair values of the consideration given in exchange for
assets. All amounts are presented in Australian dollars,
unless otherwise noted.
Comparative information
The cashflow in respect of lease payments in the prior year has
been reclassified as a cash outflow from financing activities in
the statement of cashflows to align with the requirements of
AASB 107 Statement of Cashflows.
Going concern
The Directors believe that Neometals Ltd will continue as
a going concern and as a result the financial statements
have been prepared on the going concern basis, which
contemplates the continuity of normal business activity and
the realisation of assets and the settlement of liabilities in the
normal course of business.
The Group incurred losses after tax from continuing operations
of $38,167,032 and losses from discontinuing operations
of $30,945,885 (30 June 2023: $34,608,562 and $195,807
respectively) and experienced net cash outflows from
operating and investing activities of $25,626,960 (30 June
2023: $35,330,442) for the year ended 30 June 2024. As at
30 June 2024 the Group had cash and cash equivalents of
$9,103,833 (30 June 2023: $24,438,695) and net current assets
of $29,191,651 (30 June 2023: $23,735,845).
During the year ended 30 June 2024, the Group has
continued to progress its strategy of developing a portfolio
of sustainable processing solutions that recycle and
recover critical materials from high-value waste streams.
Priority focus has been on advancing the patented
Lithium-ion
battery
recycling
technology
in
Primobius
GmbH (Neometals 50% interest) (“Primobius”). Due to
the early-stage nature of the Group’s projects, ongoing
capital investment is necessary to commercialise these
technologies.
The
directors
recognise
that
additional
funding
is
required to meet the Group’s budgeted ongoing activities.
Subsequent to 30 June 2024, the Group has taken action
in managing its cashflow requirements which include the
following;
• Raising an additional US$3 million (A$4.5 million) on 19
August 2024 through a placement of fully paid ordinary
shares to an existing long-term shareholder; and,
• Announcing a strategy update on 22 August 2024 which
outlined a restructuring and right-sizing of the organisation
and its cost base to reflect the Group’s priority focus on
Primobius, as well as the intention to dispose of non-core
assets.
In light of the above, the directors have prepared a
cash flow forecast to 30 September 2025. This forecast
includes the necessary expenditures to maintain the Group’s
assets
in
good
standing,
meet
its
obligations
and
commitments, achieve its stated cost reduction strategy,
and manage available working capital. Included in this forecast
are
Neometals’
estimated
future
share
of
capital
contributions to Primobius as disclosed in the joint venture
approved budget.
Neometals Ltd | Annual Report 2024
66
Critical accounting judgments and key sources of estimation uncertainty
In the application of the Group’s accounting policies, management is required to make judgments, estimates and assumptions about
carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions
are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised
in the period in which the estimate is revised if the revision affects only that period or in the period of the revision and future periods
if the revision affects both current and future periods. Refer to note 3 for a discussion of critical judgments in applying the entity’s
accounting policies, and key sources of estimation uncertainty.
2. Material Accounting Policies (Cont.)
The Group’s cash flow forecast indicates a minimum funding requirement of A$11 million which will be required progressively from
December 2024 by way of debt, equity, sale of assets, or other forms of funding to continue to meet its cashflow requirements and
strategic objectives through to 30 September 2025. This cashflow forecast does not currently assume cash inflows from the sale of
non-core assets as the timing is uncertain. However, the directors are confident additional liquidity will be generated following the
completion of a successful divestment program.
Based on the progress of discussions with various parties and the directors’ expectation that the additional funding will be secured
within the required timeframes, the directors reasonably believe that they will achieve the matters set out above and therefore the going
concern basis of preparation is appropriate.
Should the Group be unable to achieve the additional funding referred to above, there is a material uncertainty that may cast
significant doubt as to whether the Group will be able to continue as a going concern and, therefore, whether it will realise its assets
and discharge its liabilities in the normal course of business.
No adjustments have been made to the financial statements relating to the recoverability and classification of recorded
asset amounts or to the amounts and classification of liabilities that might be necessary should the Group not continue as a going
concern.
Standards and interpretations adopted in the current year
The Group has adopted all of the new and revised Standards and Interpretations issued by the Australian Accounting Standards
Board (AASB) that are relevant to its operations and effective for an accounting period that begins on or after 1 July 2023 and this
has not resulted in a material impact on the financial statements of the Group.
New and revised Standards and amendments thereof and Interpretations effective for the current year that are relevant to the Group
include:
• AASB 2021-2 Amendments to Australian Accounting Standards – Disclosure of Accounting Policies and Definition of Accounting Estimates
• AASB2021-5 Amendments to Australian Accounting Standards – Deferred Tax related to Assets and Liabilities arising from a Single Transaction
• AASB 2023-2 Amendments to Australian Accounting Standards – International Tax Reform – Pillar Two Model Rules
Standards and interpretations issued but not yet effective
At the date of authorisation of the financial statements, the following Australian Accounting Standards and Interpretatis have been
issued or amended but are not yet effective and have not been adopted by the Group for the year ended 30 June 2024:
Australian Accounting Standards and Interpretations that have recently been issued or amended but are not yet mandatory, have
not been early adopted by the Company for the annual reporting period ended 30 June 2024.
Standard
Effective for annual
reporting periods
beginning on or after
Expected to be initially
applied in the financial
year ending
AASB 2014-10 ‘Amendments to Australian Accounting Standards –
Sale or Contribution of Assets between an Investor and its
Associate or Joint Venture
1 January 2025
30 June 2026
AASB 2020-6 Amendments to Australian Accounting Standards –
Classification of Liabilities as Current or Non-current
1 January 2025
30 June 2025
AASB 2020-1 Amendments to Australian Accounting Standards –
Lease Liability in a Sale and Leaseback
1 January 2024
30 June 2025
AASB 2023-1 Amendments to Australian Accounting Standards –
Supplier Finance Agreements
1 January 2024
30 June 2025
AASB 2021-2 Amendments to Australian Accounting Standards –
Lack of Exchangeability
1 January 2025
30 June 2026
Notes to the Consolidated Financial Statements
Neometals Ltd | Annual Report 2024
67
2. Material Accounting Policies (Cont.)
Material accounting policies
The following significant accounting policies have been adopted in the preparation and presentation of the financial report:
(a) Cash and cash equivalents
Cash comprises cash on hand and term deposits with a 30 day cancellation policy.
(b) Foreign currency translation
Functional and presentation currency
Items included in the financial statements of each of the group’s entities are measured using the currency of the primary economic
environment in which the entity operates (‘the functional currency’). The consolidated financial statements are presented in Australian
dollar ($), which is Neometals Ltd’s functional and presentation currency.
(c) Financial instruments issued by the company
Debt and equity instruments
Debt and equity instruments are classified as either liabilities or as equity in accordance with the substance of the contractual
arrangement.
Financial assets
Financial instruments and non-financial assets such as investments in unlisted entities, are initially measured at fair value plus
transaction costs except where the instrument is classified ‘at fair value through profit or loss’ in which case transaction costs are
expensed immediately.
The Group classifies its financial assets into the following categories: those to be measured subsequently at fair value (either
through other comprehensive income ‘FVOCI’ or through the income statement ‘FVTPL’) and those to be held at amortised cost. The
classification depends on the Group’s business model for managing its financial assets and the contractual terms of the cash flows.
All assets for which fair value is recognised or disclosed are categorised within the fair value hierarchy, based on the lowest level
input that is significant to the fair value measurement as a whole, as follows:
Level 1 – Quoted market prices in active markets for identical assets.
Level 2 – Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly
observable.
Level 3 – Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable.
(d) Non-current assets held for sale
Non-current assets and their disposal groups are classified as held for sale if their carrying amount will be recovered principally through
a sale transaction rather than continuing use. This condition is regarded as met only when the sale is highly probable and the non-
current asset (or disposal group) is available for immediate sale in its present condition. Management must be committed to the sale
which should be expected to qualify for recognition as a completed sale within one year from the date of classification.
When the Group is committed to a sale plan involving loss of control of a subsidiary, all of the assets and liabilities of that subsidiary
are classified as held for sale when the criteria described above are met, regardless of whether the Group will retain a non-controlling
interest in its former subsidiary after the sale. Non-current assets (and disposal groups) classified as held for sale are measured at the
lower of their previous carrying amount and fair value less cost to sell.
(e) Income tax
Current tax
Current tax is calculated by reference to the amount of income taxes payable or recoverable in respect of the taxable profit or tax loss
for the period. It is calculated using tax rates and tax laws that have been enacted or substantively enacted by reporting date. Current
tax for current and prior periods is recognised as a liability (or asset) to the extent that it is unpaid (or refundable).
Deferred tax
Deferred tax is accounted for using the comprehensive balance sheet liability method in respect of temporary differences arising from
differences between the carrying amount of assets and liabilities in the financial statements and the corresponding tax base of those
items.
In principle, deferred tax liabilities are recognised for all taxable temporary differences. Deferred tax assets are recognised to the extent
that it is probable that sufficient taxable amounts will be available against which deductible temporary differences or unused tax losses
and tax offsets can be utilised.
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the period(s) when the asset and liability
giving rise to them are realised or settled, based on tax rates (and tax laws) that have been enacted or substantively enacted by report-
ing date. The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the manner in
which the consolidated entity expects, at the reporting date, to recover or settle the carrying amount of its assets and liabilities.
Deferred tax assets and liabilities are offset when they relate to income taxes levied by the same taxation authority and the Company/
Consolidated Entity intends to settle its current tax assets and liabilities on a net basis.
Notes to the Consolidated Financial Statements
Neometals Ltd | Annual Report 2024
68
2. Material Accounting Policies (Cont.)
Tax consolidation
The Company and all its wholly-owned Australian resident entities are part of a tax-consolidated group under Australian taxation law.
Neometals Ltd is the head entity in the tax-consolidated group. Income tax expense/benefit, deferred tax liabilities and deferred tax
assets arising from temporary differences of the members of the tax consolidated group are recognised in the separate financial
statements of the members of the tax consolidated group using a ‘group allocation’ approach based on the allocation specified in the
tax funding arrangement.
The tax funding arrangement requires a notional current and deferred tax calculation for each entity as if it were a taxpayer in its
own right, except that unrealised profits, distributions made and received and capital gains and losses and similar items arising on
transactions within the tax consolidated group are treated as having no consequence. Current tax liabilities and assets and deferred
tax assets arising from unused tax losses and tax credits of the members of the tax consolidated group are recognised by the Company
(as head entity in the tax consolidated group).
Due to the existence of a tax funding arrangement between the entities in the tax consolidated group, amounts are recognised as
payable to or receivable by the Company and each member of the group in relation to the tax contribution amounts paid or payable
between the parent and the other members of the tax consolidated group in accordance with the arrangement. In addition to the
Company own current and deferred tax amounts, the company does not recognise the losses of the members of the tax consolidated
group as intercompany liabilities, it is recognised as part of the equity of the company. When the company becomes reasonably certain
that it will have to reimburse the subsidiary for its losses, the company recognises an intercompany liability.
Where the tax contribution amount recognised by each member of the tax consolidated group for a particular period is different to the
aggregate of the current tax liability or asset and any deferred tax asset arising from the unused tax losses and tax credits in respect of
that period, the difference is recognised as a contribution from, or distribution to, equity participants.
Research & Development Tax offset
In respect of Research and Development tax offsets, the Income tax approach (AASB 112) of accounting has been utilised, where the
tax benefit is presented within the tax line in the Statement of Profit or Loss and Other Comprehensive Income.
(f) Exploration and evaluation expenditure
Exploration and evaluation expenditures, excluding general overhead, in relation to separate areas of interest are capitalised in the year
in which they are incurred and are carried at cost less accumulated impairment losses where the following conditions are satisfied;
i) the rights to tenure of the area of interest are current; and
ii) at least one of the following conditions is also met:
- the exploration and evaluation expenditures are expected to be recouped through successful development and exploration of
the area of interest, or alternatively, by its sale; or
- exploration and evaluation activities in the area of interest have not at the reporting date reached a stage which permits a
reasonable assessment of the existence or otherwise of economically recoverable reserves, and active and significant operations
in, or in relation to, the area of interest are continuing.
Capitalised exploration costs for each area of interest (considered to be the cash generating unit) are reviewed each reporting date
to test whether an indication of impairment exists. If any such indication exists, the recoverable amount of the capitalised exploration
costs is estimated to determine the extent of the impairment loss (if any).
Where a decision is made to proceed with development, accumulated expenditure is tested for impairment and transferred to
capitalised development and then amortised over the life of the reserves associated with the area of interest once mining operations
have commenced.
(g) Property, plant and equipment
Plant and equipment is stated at cost less accumulated depreciation and impairment. Cost includes expenditure that is directly
attributable to the acquisition of the item. In the event that settlement of all or part of the purchase consideration is deferred, costs are
determined by discounting the amounts payable in the future to their present value as at the date of acquisition.
Depreciation is calculated on a diminishing value basis so as to write off the net cost or other re-valued amount of each asset over its
expected useful life to its estimated residual value. The estimated useful lives, residual values and depreciation method are reviewed
at the end of each annual reporting period with the effect of any changes recognised on a prospective basis.
The following estimated useful lives are used in the calculation of depreciation:
Furniture & Fittings
5-20 years
Plant and Equipment
2-10 years
Buildings
10-20 years
An item of property, plant and equipment is derecognised upon disposal when no future economic benefits are expected to arise from
the continued use of the asset. Any gain or loss arising on the disposal or retirement of an item of property, plant and equipment is
determined as the difference between the sales proceeds and the carrying amount of the asset and is recognised in profit and loss.
(h) Intangibles
Patents, trademarks, licences and customer contracts
Separately acquired patents, trademarks and licences are shown at historical cost. Patents, trademarks, licenses and customer
contracts acquired in a business combination are recognised at fair value at the acquisition date. They have a finite useful life and are
subsequently carried at cost less accumulated amortisation and impairment losses.
Notes to the Consolidated Financial Statements
Neometals Ltd | Annual Report 2024
69
2. Material Accounting Policies (Cont.)
Research and development
Research expenditure is recognised as an expense as incurred. Development expenditure is recognised as an asset as incurred if the
following have been demonstrated:
- The technical feasibility of completing the intangible asset so that it will be available for use or sale;
- The intention to complete the intangible asset and use or sell it;
- The ability to use or sell the intangible asset;
- How the intangible asset will generate probable future economic benefits; and
- The ability to measure reliably the expenditure attributable to the intangible asset during its development.
Research and development costs previously recognised as an expense are not recognised as an asset in a subsequent period.
(i) Provisions
Provision for onerous contract
Present obligations arising under onerous contracts are recognised and measured as provisions. An onerous contract is considered
to exist where the Group has a contract under which the unavoidable costs of meeting the obligations under the contract exceed the
economic benefits expected to be received from the contract.
(j) Investments in associates and joint ventures
An associate is an entity over which the Group has significant influence. Significant influence is the power to participate in the financial
and operating policy decisions of the investee but is not control or joint control over those policies.
A joint venture is a joint arrangement whereby the parties that have joint control of the arrangement have rights to the net assets of
the joint arrangement. Joint control is the contractually agreed sharing of control of an arrangement, which exists only when decisions
about the relevant activities require unanimous consent of the parties sharing control.
The results and assets and liabilities of associates or joint ventures are incorporated in these consolidated financial statements using
the equity method of accounting, except when the investment, or a portion thereof, is classified as held for sale, in which case it is
accounted for in accordance with AASB 5. Under the equity method, an investment in an associate or a joint venture is initially
recognised in the consolidated statement of financial position at cost and adjusted thereafter to recognise the Group’s share of the
profit or loss and other comprehensive income of the associate or joint venture. When the Group’s share of losses of an associate or a
joint venture exceeds the Group’s interest in that associate or joint venture (which includes any long-term interests that, in substance,
form part of the Group’s net investment in the associate or joint venture), the Group discontinues recognising its share of further losses.
Additional losses are recognised only to the extent that the Group has incurred legal or constructive obligations or made payments on
behalf of the associate or joint venture.
An investment in an associate or a joint venture is accounted for using the equity method from the date on which the investee becomes
an associate or a joint venture. Any increase in percentage shareholding is accounted for in the cost of the investment.
If there is objective evidence that the Group’s net investment in an associate or joint venture is impaired, the requirements of AASB
136 are applied to determine whether it is necessary to recognise any impairment loss with respect to the Group’s investment. When
necessary, the entire carrying amount of the investment (including goodwill) is tested for impairment in accordance with AASB 136
Impairment of Assets as a single asset by comparing its recoverable amount (higher of value in use and fair value less costs to sell)
with its carrying amount. Any impairment loss recognised forms part of the carrying amount of the investment. Any reversal of that
impairment loss is recognised in accordance with AASB 136 to the extent that the recoverable amount of the investment subsequently
increases.
The Group discontinues the use of the equity method from the date when the investment ceases to be an associate or a joint venture,
or when the investment is classified as held for sale. When the Group retains an interest in the former associate or joint venture and
the retained interest is a financial asset, the Group measures the retained interest at fair value at that date and the fair value is regarded
as its fair value on initial recognition in accordance with AASB 9. The difference between the carrying amount of the associate or joint
venture at the date the equity method was discontinued, and the fair value of any retained interest and any proceeds from disposing
of a part interest in the associate or joint venture is included in the determination of the gain or loss on disposal of the associate or
joint venture. In addition, the Group accounts for all amounts previously recognised in other comprehensive income in relation to that
associate or joint venture on the same basis as would be required if that associate or joint venture had directly disposed of the related
assets or liabilities. Therefore, if a gain or loss previously recognised in other comprehensive income by that associate or joint venture
would be reclassified to profit or loss on the disposal of the related assets or liabilities, the Group reclassifies the gain or loss from equity
to profit or loss (as a reclassification adjustment) when the equity method is discontinued.
The Group continues to use the equity method when an investment in an associate becomes an investment in a joint venture or an
investment in a joint venture becomes an investment in an associate. There is no re-measurement to fair value upon such changes in
ownership interests.
When the Group reduces its ownership interest in an associate or a joint venture but the Group continues to use the equity method,
the Group reclassifies to profit or loss the proportion of the gain or loss that had previously been recognised in other comprehensive
income relating to that reduction in ownership interest if that gain or loss would be reclassified to profit or loss on the disposal of the
related assets or liabilities.
When a group entity transacts with an associate or a joint venture of the Group, profits and losses resulting from the transactions with
the associate or joint venture are recognised in the Group’s consolidated financial statements only to the extent of interests in the
associate or joint venture that are not related to the Group.
Notes to the Consolidated Financial Statements
Neometals Ltd | Annual Report 2024
70
3. Critical Accounting Judgments and Key Sources of Estimation Uncertainty
In the application of the Group’s accounting policies, which are described in note 2, management is required to make judgments,
estimates and assumptions about carrying values of assets and liabilities that are not readily apparent from other sources.
The estimates and associated assumptions are based on historical experience and various other factors that are believed to be
reasonable under the circumstance, the results of which form the basis of making the judgments. Actual results may differ from
these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are
recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and
future periods if the revision affects both current and future periods.
3.1 Critical judgments in applying the entity’s accounting policies
The following are the critical judgments that management has made in the process of applying the Group’s accounting policies
and that have the most significant effect on the amounts recognised in the financial statements.
(a) Recovery of capitalised exploration and evaluation expenditure
The Group capitalises exploration and evaluation expenditure incurred on ongoing projects. The recoverability of this capitalised
exploration expenditure is entirely dependent upon returns from the successful development of mining operations or from surpluses
from the sale of the projects or the subsidiary companies that control the projects. At the point that it is determined that any capitalised
exploration expenditure is definitely not recoverable, it is written off.
(b) Share-based payments
Equity-settled share-based payments granted are measured at fair value at the date of grant. The fair value of share options is
measured by use of the Monte Carlo model and requires substantial judgement. Management has made its best estimate for the
effects of non-transferability, exercise restrictions (including the probability of meeting market conditions attached to the option), and
behavioural considerations.
The fair value of performance rights issued during the period was made with reference to the Company’s closing share price on
the date of grant. Management has been required to estimate the probability that the Company will meet the performance criteria
determined by the board.
(c) Unlisted Investments
The investments in non-listed shares, being financial assets, are required to be fair valued at each reporting date in accordance with
the Accounting Standards. The valuation of shares held in non-listed companies includes a number of estimates and judgements as,
generally, limited information exists on such non-listed companies and their underlying assets or projects. Accordingly, management
has engaged an external valuation specialist in assessing the fair value of all investments in non-listed shares.
(d) Recovery of investments in Joint Ventures and Associates
The recoverability of the investment in associates and joint venture is entirely dependant on the success of the entity’s financial
performance where dividends will be received from retained earning, or from the sale of the Group’s holdings in the project.
Notes to the Consolidated Financial Statements
Neometals Ltd | Annual Report 2024
71
4. Parent Entity Disclosure
Financial Position
2024
$
2023
$
Assets
Current assets
10,266,387
26,199,905
Non-current assets
24,548,760
30,012,521
Total assets
34,815,147
56,212,426
Liabilities
Current liabilities
1,533,732
3,198,663
Non-current liabilities
282,130
519,747
Total liabilities
1,815,862
3,718,410
Net Assets
32,999,285
52,494,016
Equity
Issued capital
158,706,320
146,234,171
Retained earnings
(127,997,986)
(103,555,639)
Reserves
Share based payments
2,290,951
9,815,484
Total equity
32,999,285
52,494,016
Financial Performance
Loss for the year
(22,216,162)
(27,642,526)
Other comprehensive income
-
-
Total comprehensive loss
(22,216,162)
(27,642,526)
Notes to the Consolidated Financial Statements
Neometals Ltd | Annual Report 2024
72
Note
2024
2023
(a) Income
$
$
Income from operations consisted of the following items:
Other income:
Other income
17,156
5,000
Interest income
526,963
1,056,585
Total
544,119
1,061,585
(b) Profit / (loss) before income tax
Profit / (loss) before income tax has been arrived at after charging the
following expenses:
Employee benefits expense:
Equity settled share-based payments
9
(894,935)
(1,747,438)
Superannuation expense
(766,439)
(743,997)
Employee salaries
(5,072,910)
(7,578,550)
Other employee benefits
(1,166,711)
(1,085,024)
Total
(7,900,995)
(11,155,009)
Impairments:
Impairment expense of associate
22
(6,599,531)
(1,273,045)
Impairment expense of joint venture
21(i)(iv)
(2,800,414)
(2,716,703)
Impairment expense of exploration and evaluation expenditure
12
(653,334)
-
Impairment of right of use assets
20
(2,766,774)
-
Total
(12,820,053)
(3,989,748)
Other expenses
Research and development expense
(1,275,192)
(303,719)
Legal fees
(974,576)
(1,944,369)
Travel
(783,096)
(1,237,470)
Write-off of abandoned patents
(754,905)
-
Consultant fees
(737,739)
(2,564,459)
Insurances
(619,442)
(642,782)
Depreciation of non-current assets
(491,176)
(420,122)
ASX/AIM fees
(445,576)
(433,444)
Accounting fees
(416,708)
(348,500)
Net fair value realised loss on listed financial assets
(274,140)
(150,247)
Net fair value unrealised loss on listed financial assets
(57,041)
(512,769)
Other expenses
(1,010,751)
(1,834,153)
Total
(7,840,342)
(10,392,034)
5. (Loss)/Profit for the Year Continuing Operations
Notes to the Consolidated Financial Statements
Neometals Ltd | Annual Report 2024
73
During the year, the Board approved the divestment of the 100% owned Barrambie Titanium/Vanadium Project. Activities have
focussed on the divestment of the project, with interest from third parties to acquire the asset. The results of the discontinued operation
which have been included in the financial statements for the year were as follows:
(i) The 2023 financial year expenses and cashflows related to the Barrambie Project have been re-presented the discontinued operations
due to the business unit being transferred to held for sale in the current financial year.
The impact of the adjustment is as follows:
2024
$
2023
$
(Re-presentedi)
Results of discontinued operations
Loss from discontinued operations
(30,945,885)
(195,807)
Cash flows from discontinued operations
Cashflows from operating activities
(176,178)
(87,030)
Cashflows from investing activities
(3,513,913)
(4,689,095)
Cashflows from financing activities
(114,764)
(60,664)
Effect on the financial position of the group
Assets classified as held for sale
20,214,451
-
Liabilities associated with the assets
classified as held for sale
(214,451)
-
As previously
reported
Discontinued
operations
adjustment
As
re-presented
adjustment
$
$
$
Impact on loss for the year
Employee expenses
(11,155,509)
500
(11,155,009)
Occupancy expenses
(188,662)
11,339
(177,323)
Finance costs
(29,859)
3,852
(26,007)
Other expenses
(10,563,595)
171,561
(10,392,034)
Marketing expenses
(450,914)
8,555
(442,359)
Loss from discontinued operations
-
(195,807)
(195,807)
Impact on cashflows for the year
Payments to suppliers and employees
(20,398,542)
87,030
(20,311,512)
Payments to suppliers – discontinued operations
-
(87,030)
(87,030)
Payments for property, plant & equipment
(435,530)
299,698
(135,832)
Payments for property, plant & equipment – discontinued operations
-
(299,698)
(299,698)
Payments for exploration and evaluation
(5,827,390)
4,389,397
(1,437,993)
Payments for exploration and evaluation – discontinued operations
-
(4,389,397)
(4,389,397)
Lease payments
(347,854)
60,664
(287,190)
Lease payments – discontinued operations
-
(60,664)
(60,664)
6. Discontinued Operations
Notes to the Consolidated Financial Statements
Neometals Ltd | Annual Report 2024
74
7. Income Taxes
2024
$
2023
$
Current income tax:
Current income tax charge
(316,580)
(591,751)
Deferred tax
-
(782,904)
Total tax (benefit) / expense
(316,580)
(1,374,655)
The prima facie income tax expense on pre-tax accounting profit from continuing
operations reconciles to the income tax benefit in the financial statements as follows:
(Loss) / profit before income tax
(69,190,212)
(36,179,024)
Income tax calculated at 30%
(20,733,875)
(10,853,707)
Effect of income and expenses that are not deductible in determining taxable profit
2,269,354
3,384,630
Effect of income and expenses that are not recognised as deferred tax assets
18,721,112
6,493,707
Adjustments for current tax of prior periods
(287,591)
192,466
Refund of prior year R&D claim
(316,580)
(591,751)
Income tax benefit in profit or loss
(316,580)
(1,374,655)
The tax rate used in the above reconciliation is the corporate tax rate of 30% payable by Australian corporate entities on taxable income
under Australian tax law. There has been no change in the corporate tax rate during the reporting period.
(b) Deferred tax balances
The net deferred tax balance as presented in the statement of financial position is detailed below:
2024
$
2023
$
Deferred tax liabilities
(16,529,051)
(16,529,051)
Deferred tax assets
16,529,051
16,529,051
Net deferred tax balance
-
-
(a) Income tax (benefit)/expense recognised in profit or loss
Notes to the Consolidated Financial Statements
Neometals Ltd | Annual Report 2024
75
7. Income Taxes (Cont.)
(c) Deferred tax assets not brought to account
At 30 June 2024 the amount of tax losses not recognised was $4,982,102 (June 2023: $6,493,707). The utilisation of tax losses
depends upon the generation of future taxable profits and can be carried indefinitely while also being subject to relevant tax legislation
associated with recoupment.
Tax Consolidation
Relevance of tax consolidation to the consolidated entity
The Company and its wholly-owned Australian resident entities have formed a tax-consolidated group and are therefore taxed as a
single entity. The head entity within the tax-consolidated group is Neometals Ltd. The members of the tax-consolidated group
are identified at note 24.
Nature of tax funding arrangements and tax sharing agreements
Entities within the tax-consolidated group have entered into a tax funding arrangement and a tax sharing agreement with the
head entity. Under the terms of the tax funding arrangement, Neometals Ltd and each of the entities in the tax consolidation group
has agreed to pay a tax equivalent payment to or from the head entity, based on the current tax liability or current tax assets of
the entity. Such amounts are reflected in amounts receivable from or payable to each entity in the tax consolidated group, and are
eliminated on consolidation. The tax sharing agreement entered into between the members of the tax-consolidated group provides
for the determination of the allocation of income tax liabilities between the entities should the head entity default on its payment
obligations or if an entity should leave the tax-consolidated group. The effect of the tax sharing agreement is that each member’s tax
liability for tax payable by the tax-consolidated group is limited to the amount payable to the head entity under the tax funding
arrangement.
Exploration and
evaluation
expenditure
Investment
in associate
Other
Tax
Losses
Total
$
$
$
$
$
Balance at 30/06/22
(12,424,751)
(3,516,952)
1,173,209
13,985,590
(782,904)
Charge to profit or loss
(1,784,661)
1,197,313
(281,547)
1,651,799
782,904
Balance at 30/06/23
(14,209,412)
(2,319,639)
891,662
15,637,389
-
Charge to profit or loss
-
-
-
-
-
Balance at 30/06/24
(14,209,412)
(2,319,639)
891,662
15,637,389
-
Notes to the Consolidated Financial Statements
Neometals Ltd | Annual Report 2024
76
Details of key management personnel compensation are provided on pages 40-52 of the Remuneration Report.
The aggregate compensation made to key management personnel of the Group is set out below:
Neometals Ltd has an ownership based remuneration scheme for executives and employees.
Performance Rights Plan (“PRP”)
In accordance with the provisions of the PRP, as approved by shareholders at the Company’s AGM on 25 November 2020, employees,
Non-Executive and Executive Directors and consultants may be offered performance rights at such times and on such terms as the
board considers appropriate.
All performance rights issued under the PRP are measured over a three year period with an opportunity for the performance conditions
to be re-measured six months later should they not vest at the first vesting date. The vesting of the performance rights is dependent
on 3 criteria:
(a) Tranche 1 – The performance conditions of 40% of Performance Rights will be measured as at each vesting date by comparing
the Company’s total shareholder return (TSR) with that of a comparator group of resource companies over the relevant period.
The Performance Rights will vest depending on the Company’s percentile ranking within the comparator group on the relevant Vesting
Date as follows:
• If the Company ranks below the 50th percentile, none of the Performance Rights will vest.
• If the Company ranks at the 50th percentile, 50% of the Performance Rights will vest.
• For each 1% ranking at or above the 51st percentile, an additional 2% of the Performance Rights will vest, with 100% vesting where
the Company ranks at or above the 75th percentile.
(b) Tranche 2 – The performance conditions of 40% of Performance Rights will be measured as at each vesting date by calculating
the Company’s TSR calculated over the period commencing on the Comparator Start Date and ending on the relevant Vesting Date
(Absolute TSR).
The Performance Rights will vest depending on the Company’s Absolute TSR on the relevant Vesting Date as follows:
• If the Company’s Absolute TSR is less than 15%, none of the Performance Rights will vest.
• If the Company’s Absolute TSR is 15%, 50% of the Performance Rights will vest.
• For each additional 1% TSR above 15% Absolute TSR, an additional 10% of the Performance Rights will vest, with 100% vesting
where the Company’s Absolute TSR is at or above 20%.
(c) Tranche 3 – The performance conditions of 20% of Performance Rights will be measured as at each Vesting Date as follows:
10% will vest if the combined market capitalisation of Neometals and any entity demerged from the Neometals Group and separately
listed on the ASX would meet the threshold for entry into the ASX/S&P 200 Index.
10% to vest at the discretion of the Board based on the overall achievement by the company of its strategic objectives (both financial
and non-financial) under the leadership of the CEO and in delivering value to NMT’s shareholders and broader stakeholders.
General terms of performance rights granted under the PRP:
• The performance rights will not be quoted on the ASX.
• Performance rights can only be granted to employees, Non-Executive and Executive Directors and consultants of the Company.
• Performance rights are transferable to eligible nominees.
• Performance rights not exercised on or before the vesting date will lapse.
• All shares allotted upon the vesting of performance rights rank equally in all respects to all previously issued shares.
• Performance rights confer no right to vote, attend meetings, participate in a distribution of profit or a return of capital or another
participating rights or entitlements on the grantee unless and until the performance rights vest.
2024
$
2023
$
Short-term employee benefits
2,615,749
3,405,081
Post-employment benefits
185,603
176,750
Share-based payments
586,419
1,064,871
Termination benefits
114,869
-
Total
3,502,640
4,646,702
8. Key Management Personnel Compensation
9. Share Based Payments
Notes to the Consolidated Financial Statements
Neometals Ltd | Annual Report 2024
77
Notes to the Consolidated Financial Statements
9. Share Based Payments (Cont.)
The following share-based payment arrangements in relation to performance rights were in existence at the end of the period:
2024
Grant
Date
Number
Vesting
Date
Expiry
Date
Grant
date
share
price
Expected
volatility
Risk-
free
rate
Fair
value
at grant
date
Staff and consultants(1)
7-Dec-20
80,000
31/12/2023
30/06/2024
0.230
50%
0.10%
0.18
Chris Reed(2)
11-Oct-21
574,049
31/12/2024
30/06/2025
0.855
55%
0.34%
0.77
Jason Carone(2)
11-Oct-21
235,885
31/12/2024
30/06/2025
0.855
55%
0.34%
0.77
Mike Tamlin(2)
11-Oct-21
262,094
31/12/2024
30/06/2025
0.855
55%
0.34%
0.77
Darren Townsend(2)
11-Oct-21
262,094
31/12/2024
30/06/2025
0.855
55%
0.34%
0.77
Staff and consultants(2)
11-Oct-21
817,307
31/12/2024
30/06/2025
0.855
55%
0.34%
0.77
Chris Reed
5-Sep-22
239,904
31/12/2025
30/06/2026
1.310
61%
3.26%
1.15
Jason Carone
5-Sep-22
144,919
31/12/2025
30/06/2026
1.310
61%
3.26%
1.15
Mike Tamlin
5-Sep-22
126,804
31/12/2025
30/06/2026
1.310
61%
3.26%
1.15
Darren Townsend
5-Sep-22
126,804
31/12/2025
30/06/2026
1.310
61%
3.26%
1.15
Staff and consultants
5-Sep-22
495,625
31/12/2025
30/06/2026
1.310
61%
3.26%
1.15
Chris Reed
11-Sep-23
571,512
31/12/2026
30/06/2027
0.433
71%
3.84%
0.36
Jason Carone
11-Sep-23
314,759
31/12/2026
30/06/2027
0.433
71%
3.84%
0.36
Mike Tamlin
11-Sep-23
275,414
31/12/2026
30/06/2027
0.433
71%
3.84%
0.36
Darren Townsend
11-Sep-23
275,414
31/12/2026
30/06/2027
0.433
71%
3.84%
0.36
Staff and consultants
11-Sep-23
1,322,662
31/12/2026
30/06/2027
0.433
71%
3.84%
0.36
Staff and consultants
19-Jan-24
318,946
31/12/2026
30/06/2027
0.165
71%
3.84%
0.36
Staff and consultants(3)
11-Sep-23
249,937
30/06/2024
30/06/2024
0.433
71%
3.84%
0.45
Staff and consultants
11-Sep-23
214,233
30/06/2025
30/06/2025
0.433
71%
3.84%
0.45
Staff and consultants
11-Sep-23
214,233
30/06/2026
30/06/2026
0.433
71%
3.84%
0.45
Steven Cole(4)
12-Jul-23
162,089
30/06/2024
30/06/2024
0.511
n/a
n/a
0.49
Doug Ritchie(4)
12-Jul-23
91,175
30/06/2024
30/06/2024
0.511
n/a
n/a
0.49
Natalia Streltsova(4)
12-Jul-23
91,175
30/06/2024
30/06/2024
0.511
n/a
n/a
0.49
Jenny Purdie(4)
12-Jul-23
121,567
30/06/2024
30/06/2024
0.511
n/a
n/a
0.49
Les Guthrie(4)
12-Jul-23
25,326
30/06/2024
30/06/2024
0.511
n/a
n/a
0.49
Total
7,613,927
The valuation of the Non-executive Directors performance rights has been based on the amount of their fees that have been forgone
calculated using a 5-day VWAP. The fair value of other KMP performance rights issued have been independently valued by a third
party using a Monte Carlo simulation to determine fair value. A dividend yield of 0% has been applied to all share-based payments. The
total expense recognised for the period arising from share-based payment transactions and accounted for as equity-settled share-based
payment transactions is $894,935 (2023: $1,747,438).
1) 100% (80,000) of these performance rights have vested at 30 June 2023, of which 80,000 have been converted into ordinary shares
after 30 June 2024.
2) 0% (nil) of these performance rights have vested at 30 June 2024 and will be retested at 31 December 2024.
3) 100% (249,937) of these performance rights have vested at 30 June 2024, of which 249,937 have been converted into ordinary
shares after 30 June 2024.
4) 100% (491,332) of these performance rights have vested at 30 June 2024, of which 91,175 have been converted into ordinary
shares. The remaining portion remain unexercised.
Neometals Ltd | Annual Report 2024
78
(i) 6,180,793 shares in the Company were issued on vesting of performance rights at a fair value of $1,299,763 at grant (2023: 4,364,780
for a fair value of $688,259 at grant). Refer to note 17.
(ii) 1,186,779 performance rights lapsed during the financial year (2023: 956,433).
(iii) 1,125,432 performance rights were forfeited on cessation of employment (2023: 265,277)
(iv) 821,269 of this balance is exercisable at the end of the period.
The following reconciles the outstanding performance rights granted at the beginning and end of the financial year:
9. Share Based Payments (Cont.)
2024
2023
Performance
Rights No.
Performance
Rights No.
Balance at beginning of the financial year
11,412,220
15,293,385
Granted during the financial year as compensation
4,694,711
1,705,325
Exercised during the financial year (i)
(6,180,793)
(4,364,780)
Lapsed during the financial year (ii)
(1,186,779)
(956,433)
Forfeited during the financial year (iii)
(1,125,432)
(265,277)
Balance at the end of the financial year (iv)
7,613,927
11,412,220
10. Trade and Other Receivables
2024
$
2023
$
Current
Sundry debtors(i)
695,372
1,008,422
Other receivables
39,487
720,376
Prepayments
232,999
302,806
Total
967,858
2,031,604
(i) Sundry debtors is inclusive of $337,409 owed from Primobius GmbH for reimbursement of expenditure paid for by Neometals Ltd.
11. Other Financial Assets
(i) Level 1 – Quoted market prices in active markets for identical assets:
The Group has invested in a portfolio of listed shares which are held for trading. Financial assets at FVTPL are measured at fair value at the
end of each reporting period, with any fair value gains or losses recognised in profit or loss. The valuation technique and key inputs used to
determine the fair value are quoted bid prices in an active market.
2024
$
2023
$
Current
Financial assets measured at FVTPL(i)
218,089
763,650
Term deposits
325,000
Total Current
543,089
763,650
Non-current
Financial assets measured at FVTPL(ii)
3,769,028
4,429,896
Convertible note(iii)
749,063
669,075
Rental bond term deposit
295,712
200,000
Total Non-current
4,813,803
5,298,971
Total
5,356,892
6,062,621
Notes to the Consolidated Financial Statements
Neometals Ltd | Annual Report 2024
79
Notes to the Consolidated Financial Statements
11. Other Financial Assets (Cont.)
(ii) Level 3 - Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable:
The Group has invested in a portfolio of non-listed shares which are not actively traded. The fair values of these investments
have been determined by external valuation specialists from time to time using various valuation techniques, including
but not limited to the market approach, the cost or net assets value approach and the income approach.
(iii) The Group has invested US$500,000 in a financing round for private US start up, Tyfast Energy Corp. The investment is by way of
convertible note providing the Group with the ability to obtain a minority equity stake in Tyfast.
12. Exploration and Evaluation Expenditure
The recovery of exploration expenditure carried forward is dependent upon the discovery of commercially viable mineral and other
natural resource deposits, their development and exploration, or alternatively their sale.
Consolidated
Capitalised exploration and
evaluation expenditure
$
Gross carrying amount
Balance at 30 June 2022
47,176,469
Additions
5,948,962
Balance at 30 June 2023
53,125,431
Additions
3,474,348
Remeasurement to fair value less cost of disposal
(30,558,282)
Balance transferred to asset held for sale
(25,388,163)
Balance at 30 June 2024
653,334
Accumulated impairment
Balance at 30 June 2022
5,760,720
Balance at 30 June 2023
5,760,720
Impairment expense
653,334
Impairment expense on asset held for sale
(5,760,720)
Balance at 30 June 2024
653,334
Net book value
As at 30 June 2023
47,364,711
As at 30 June 2024
-
Neometals Ltd | Annual Report 2024
80
Consolidated
Plant and
equipment
at cost
$
Gross carrying amount
Balance at 30 June 2022
1,233,015
Additions
454,133
Written off
(147,524)
Balance at 30 June 2023
1,539,624
Additions
48,744
Transferred to asset held for sale
(484,631)
Balance at 30 June 2024
1,103,737
Accumulated depreciation
Balance at 30 June 2022
582,883
Depreciation expense
190,205
Written off
(110,733)
Balance at 30 June 2023
662,355
Depreciation expense
183,637
Transferred to asset held for sale
(163,740)
Balance at 30 June 2024
682,252
Net book value
As at 30 June 2023
877,269
As at 30 June 2024
421,485
13. Property, Plant and Equipment
2024
$
2023
$
Trade payables
26,795
322,691
Accrued expenses
313,994
1,868,175
Total
340,789
2,190,866
The average credit period on purchases is 30 days. No interest is charged on the trade payables. The Group has financial risk
management policies in place to help ensure that all payables are paid within the settlement terms.
14. Trade and Other Payables
Notes to the Consolidated Financial Statements
Neometals Ltd | Annual Report 2024
81
Notes to the Consolidated Financial Statements
15. Provisions
2024
$
2023
$
Current
Annual leave
682,283
847,923
Long service leave
271,761
173,690
Total current
954,044
1,021,613
Non-current
Long service leave
39,132
72,685
Total non-current
39,132
72,685
Total
993,176
1,094,298
16. Issued Capital
2024
$
2023
$
622,810,316 fully paid ordinary shares (2023: 552,741,176)
158,706,319
146,234,171
Fully paid ordinary shares carry one vote per share and carry the right to dividends.
Share options
At balance date there were no share options in existence over ordinary shares (2023: nil).
Performance rights
At balance date there were 7,613,927 performance rights in existence over ordinary shares (2023: 11,412,220).
2024
2023
No.
$
No.
No.
Fully paid ordinary shares
Balance at beginning of financial year
552,741,176
146,234,171
548,376,396
145,564,286
Share issue costs
-
(958,639)
-
(18,374)
Issue of capital
63,888,347
12,131,024
-
-
Other share based payments (see note 9)
6,180,793
1,299,763
4,364,780
688,259
Balance at the end of the financial year
622,810,316
158,706,319
552,741,176
146,234,171
Neometals Ltd | Annual Report 2024
82
17. Reserves
The share based payments reserve arises on the grant of share options and performance rights for the provision of services by
consultants and to executives and employees under the employee share option plan, performance rights plan, employment
contracts or as approved by shareholders. Amounts are transferred out of the reserve and into issued capital when the
options are exercised or when shares are issued pursuant to the terms of the performance rights. Further information about
share-based payments to employees is provided in note 9 to the financial statements.
i) At 30 June 2024, the value of the reserve is reflective of the current performance rights in existence. The remaining amount has
been transferred to accumulated losses.
ii) In August 2013 former Chairman, David Reed, committed to provide a standby facility to support the Company’s
working capital position. As a result, and following shareholder approval, 2 million convertible notes were issued to David Reed that
were converted into 50,000,000 fully paid ordinary shares in November 2015. At 30 June 2024, these historical amounts were
cleared from the reserve to accumulated losses.
iii) The investments revaluation reserve represents historical gains and losses which had accumulated under a previous policy of
revaluing available-for-sale financial assets in other comprehensive income and which ceased on 30 June 2017. At 30 June 2024,
these historical amounts were cleared from the reserve to accumulated losses.
2024
$
2023
$
Share based payments reserve:
Balance at the beginning of the financial year
9,515,136
8,455,957
Increase in share based payments
894,935
1,747,438
Amounts transferred to share capital on exercise
(1,299,763)
(688,259)
Historical reserve clearing(i)
(6,819,357)
-
Balance at the end of the financial year
2,290,951
9,515,136
Convertible note reserve:
Balance at the beginning of the financial year
300,349
300,349
Historical reserve clearing(ii)
(300,349)
-
Balance at the end of the financial year
-
300,349
Investment revaluation reserve:
Balance at the beginning of the financial year
1,019,637
1,019,637
Historical reserve clearing(iii)
(1,019,637)
-
Balance at the end of the financial year
-
1,019,637
Total Reserves
2,290,951
10,835,122
Notes to the Consolidated Financial Statements
Neometals Ltd | Annual Report 2024
83
Notes to the Consolidated Financial Statements
18. Earnings Per Share
Basic and diluted loss per share
The loss and weighted average number of ordinary shares used in the calculation of basic and diluted loss per share are as follows:
2024
Cents per
share
2023
Cents per
share
Basic earnings per share:
Continuing operations
(6.43)
(6.27)
Continuing and discontinued operations
(11.65)
(6.30)
Diluted earnings per share:
Continuing operations
(6.43)
(6.27)
Continuing and discontinued operations
(11.65)
(6.30)
2024
$
2023
$
Loss (i)
Continuing operations
(38,167,032)
(34,608,562)
Continuing and discontinued operations
(69,112,917)
(34,804,369)
2024
No.
2023
No.
Weighted average number of ordinary shares for the purpose of basic loss per share
593,279,914
552,167,746
Weighted average number of ordinary shares for the purpose of diluted loss per share
593,279,914
552,167,746
19. Commitments for Expenditure
(a) Exploration and evaluation expenditure commitments
The Consolidated Entity holds mineral exploration licences in order for it to undertake its exploration and evaluation activities. To
continue to hold tenure over these areas the Group is required to undertake a minimum level of expenditure on or in relation to the
leases. Minimum expenditure commitments for the exploration and mining leases for the 2024 financial year are outlined in the table
below.
(i) Due to the nature of this expenditure, in that the expenditure commitments may be reduced by the relinquishment of tenements,
estimates for the commitment have not been forecast beyond June 2025.
(b) Joint venture commitments
Pursuant to the shareholders agreement providing shareholders funding, in July 2024, Neometals Ltd contributed €2,000,000 to
Primobius GmbH to continue to fund ongoing joint venture activities.
2024
$
2023
$
Exploration expenditure commitments
Not longer than 1 year(i)
739,212
707,509
(i) Loss used in the calculation of profit / (loss) per share reconciles to net loss in the consolidated statement of comprehensive
income.
Neometals Ltd | Annual Report 2024
84
20. Leases
Leasing arrangements
Leases relate to the lease of commercial premises in West Perth, Welshpool, and a photocopier. The lease agreement for the
Company’s West Perth premises was renewed until 30 June 2026. The lease of a photocopier is for a period of 36 months expiring
in June 2026. The Welshpool lease expired in February 2023 and was renewed until February 2026. A lease was entered into in
June 2023 for another floor in the West Perth office until 30 June 2026. The commitments are based on the fixed monthly lease
payment. At 30 June 2024, the leases belonging to Australian Titanium (Welshpool warehouse and West Perth office floor) were
transferred to asset held for sale. On 1 January 2022, Recycling Industries Scandinavia AB (RISAB) entered into a land lease
agreement with the Port of Pori until 31 December 2035, which has been included due to the consolidation of RISAB, now that
Neometals Ltd has control. The right of use asset related to this land use agreement has been impaired.
30 June 2024
Land &
Buildings
Equipment
Total
$
$
$
Right-of-use assets
Cost
4,265,755
14,359
4,280,114
Accumulated Depreciation
(1,100,724)
(3,590)
(1,104,313)
Impairment
(2,766,774)
-
(2,766,774)
Carrying Amount
398,257
10,769
409,026
30 June 2024
Land &
Buildings
Equipment
Total
$
$
$
Lease liability
Opening
937,673
-
937,673
Additions
-
14,359
14,359
Amount recognised on gaining control
3,598,854
-
3,598,854
Interest
116,093
1,004
117,097
Lease repayments
(347,889)
(4,188)
(352,077)
Transferred to held for sale
(204,985)
-
(204,985)
Closing
4,099,746
11,175
4,110,921
Current
124,856
3,440
128,296
Non-current
3,974,890
7,735
3,982,625
30 June 2023
Buildings
Equipment
Total
$
$
$
Right-of-use assets
Cost
1,813,441
9,044
1,822,485
Accumulated Depreciation
(917,751)
(9,044)
(926,795)
Carrying Amount
895,690
-
895,690
Notes to the Consolidated Financial Statements
Neometals Ltd | Annual Report 2024
85
Notes to the Consolidated Financial Statements
20. Leases (Cont.)
30 June 2023
Buildings
Equipment
Total
$
$
$
Lease liability
Opening
362,713
9,044
371,757
Additions
935,241
-
935,241
Interest
26,827
172
26,999
Lease repayments
(387,107)
(9,216)
(396,323)
Closing
937,674
-
937,674
Current
285,625
-
285,625
Non-current
652,049
-
652,049
2024
$
2023
$
Amounts recognised in profit and loss
Depreciation expense on right-of-use asset
177,518
332,817
Interest expense on lease liabilities
63,266
26,999
Impairment expense
2,766,774
-
Total
3,007,558
359,816
Neometals Ltd | Annual Report 2024
86
Name of operation
Principal activity
Interest
2024
%
2023
%
Reed Advanced Materials Pty Ltd(i)
Evaluation of lithium hydroxide process
70
70
The Consolidated Entity’s interest in assets employed in the above joint ventures is detailed below.
(i) Reed Advanced Materials Pty Ltd (“RAM”)
On 6 October 2015 Neometals and Process Minerals International Pty Ltd entered into a shareholders agreement for the
purposes of establishing and operating a joint venture arrangement through RAM to operate a business of researching, designing
and developing the capabilities and technology relating to the processing of lithium hydroxide. Following the execution of the
shareholders agreement RAM was held 70:30 between Neometals and Process Minerals International.
21. Joint Arrangements
2024
%
2023
%
Summarised financial information for the joint venture:
Carrying value of investment in the joint venture
1
1
Opening loan to joint venture
-
350,000
Loan to joint venture during the period
1,143,956
2,366,703
Impairment of loan to joint venture
(1,143,956)
(2,716,703)
Closing loan to joint venture
-
-
Share of loss of joint venture not recognised in profit or loss
(1,192,497)
(1,532,266)
2024
%
2023
%
Reed Advanced Materials Pty Ltd Summary Balance Sheet
Current assets
1,475,676
1,465,895
Non-current assets
601,304
678,909
Current liabilities
(7,790,196)
(6,147,087)
Non-current liabilities
-
-
Notes to the Consolidated Financial Statements
Neometals Ltd | Annual Report 2024
87
Notes to the Consolidated Financial Statements
Name of operation
Principal activity
Interest
2024
%
2023
%
Primobius GmbH(ii)
Lithium battery recycling
50
50
The Consolidated Entity’s interest in assets employed in the above joint ventures is detailed below.
(ii) Primobius GmbH
On 31 July 2020, Neometals and SMS group GmbH entered into a formal agreement to establish a 50:50 JV (‘Primobius GmbH’)
to commercialise Neometals proprietary lithium battery recycling process.
(a) The current asset balance is inclusive of cash and cash equivalents of $1,688,116 (2023: $5,566,896)
(b) The expenses balance is inclusive of depreciation of $2,451,581 (2023: $2,472,877)
2024
%
2023
%
Summarised financial information for the joint venture:
Opening balance of investment in joint venture
4,699,280
5,458,508
Cash contributions
4,124,491
3,091,947
Share of loss of joint venture recognised in profit or loss
(6,157,321)
(3,851,175)
Carrying value of investment in the joint venture
2,666,450
4,699,280
2024
%
2023
%
Primobius GmbH Summary Balance Sheet
Current assets(a)
2,195,514
6,200,733
Non-current assets
7,028,391
8,667,753
Current liabilities
(3,788,294)
(5,307,806)
Non-current liabilities
-
-
Revenue
19,149,274
1,567,123
Expense(b)
(31,463,917)
(9,269,473)
Loss from continuing operations
(12,314,643)
(7,702,350)
Share of loss of joint venture recognised in profit or loss
(6,157,321)
(3,851,175)
21. Joint Arrangements (Cont.)
Neometals Ltd | Annual Report 2024
88
2024
%
2023
%
ACN 630 589 507 Pty Ltd Summary Balance Sheet
Current assets
57,124
119,077
Non-current assets
286,277
275,722
Current liabilities
-
(10,000)
Non-current liabilities
(333,600)
(213,598)
(iii) Recycling Industries Scandinavia AB (“RISAB”)
In March 2023, Neometals and Critical Metals Ltd executed an agreement to formalise a 50:50 Vanadium Recovery Project JV
(RISAB). In April 2023, Neometals’ interest in RISAB increased to 72.5% following additional equity contributions of $3.0 million.
During the financial year, Neometals ownership increased to 88% from additional contributions resulting in consolidation of RISAB
within the Groups financial statements. The balance of the investment in RISAB has been impaired to nil.
Name of operation
Principal activity
Interest
2024
%
2023
%
Recycling Industries Scandinavia AB(iii)
Vanadium recovery
88.0
72.5
2024
%
2023
%
Summarised financial information for the joint venture:
Opening balance of investment in joint venture
642,964
-
Cash contributions
3,375,352
4,090,590
Share of (profit)/loss of joint venture recognised in profit or loss
(2,361,858)
(3,447,626)
Impairment of joint venture
(1,656,458)
-
Carrying value of investment in the joint venture
-
642,964
Name of operation
Principal activity
Interest
2024
%
2023
%
ACN 630 589 507 Pty Ltd(iv)
Lithium-ion battery recycling IP
50
50
2024
%
2023
%
Summarised financial information for the joint venture:
Opening balance of investment in joint venture
106,801
-
Cash contributions
60,000
106,801
Share of loss of joint venture recognised in profit or loss
(97,087)
-
Carrying value of investment in the joint venture
69,714
106,801
The Consolidated Entity’s interest in assets employed in the above joint ventures is detailed below.
(iv) ACN 630 589 507 Pty Ltd (“ACN 630”)
On 8 December 2022, Neometals transferred 50% equity interest in battery recycling IP holding company, ACN 630 589 507
Pty Ltd to SMS group GmbH on an unconditional basis. As a result of this, ACN 630 left the Neometals consolidated group due to
a loss of control event.
21. Joint Arrangements (Cont.)
Notes to the Consolidated Financial Statements
Neometals Ltd | Annual Report 2024
89
Notes to the Consolidated Financial Statements
Redivium Limited (formerly Hannans Ltd)
The above associate is accounted for using the equity method in this consolidated financial report.
Name of operation
Principal activity
Interest
2024
%
2023
%
Redivium Limited (formerly Hannans Ltd)
Lithium-ion battery recycling
26.04
26.09
2024
%
2023
%
Summarised financial information for the associate:
Opening carrying value of investment in associate
9,677,933
13,668,977
Shares purchased / (disposed of) at fair value
-
694,515
Share of loss of associate recognised in profit or loss(i)
(438,965)
(3,412,514)
Impairment expense(ii)
(6,599,531)
(1,273,045)
Closing carrying value of investment in associate(III)
2,639,437
9,677,933
2024
%
2023
%
Shares held in Redivium Limited
879,812,014
879,812,014
2024
%
2023
%
Redivium Limited Summary Balance Sheet
Current assets
3,374,202
3,681,473
Non-current assets
13,177,886
13,095,013
Current liabilities
(90,702)
(142,230)
Non-current liabilities
-
-
22. Investment in Associate
(i) The equity accounted share of the associate’s loss as adjusted as if applying the same accounting policies as Neometals is
credited against the carrying value of the investment in the associate.
(ii) In the current financial year, the carrying value of the investment in associate has been impaired down to its carrying value on a
per share basis resulting in a $6,599,531 expense (2023: $1,273,045)
(iii) The fair value of the Groups investment in Redivium as at 30 June 2024 on a per share basis is $2,639,437 (2023: $9,677,933)
based on a share price of $0.003 at 30 June 2024 (30 June 2023: $0.011)
Neometals Ltd | Annual Report 2024
90
23. Subsidiaries
Name of entity
Country of
incorporation
Ownership interest
2024
%
2023
%
Parent entity
Neometals Ltd
Australia
Subsidiaries
Australian Titanium Pty Ltd (formerly Australian Vanadium Corporation
(Holdings) Pty Ltd) (i)
Australia
100
100
Alphamet Management Pty Ltd (formerly Australian Vanadium
Corporation (Investments) Pty Ltd)
Australia
100
100
Inneovation Pty Ltd (formerly Australian Vanadium Exploration Pty Ltd)
Australia
100
100
Neometals Energy Pty Ltd (formerly Barrambie Gas Pty Ltd)
Australia
100
100
Neomaterials Pty Ltd (formerly GMK Administration Pty Ltd)
Australia
100
100
Neometals Investments Pty Ltd (formerly Gold Mines of Kalgoorlie Pty Ltd)
Australia
100
100
Urban Mining Pty Ltd (formerly Mount Finnerty Pty Ltd)
Australia
100
100
Adamant Technologies Pty Ltd
Australia
100
100
Avanti Materials Ltd
Australia
100
100
Ecometals Pty Ltd
Australia
100
100
Avanti Minerals Ltd
Australia
100
-
Recycling Industries Scandavia AB(ii)
Sweden
88
N/A
Novana Oy
Finland
88
N/A
All of these companies are members of a tax consolidated group. Neometals Ltd is the head entity of the tax consolidated group.
(i) Australian Titanium Pty Ltd has been classified as asset held for sale. Refer to note 6 for further information.
(ii) Refer to note 21 for further information on change in ownership percentage.
24. Segment Information
Basis for segmentation
AASB 8 Operating Segments requires the presentation of information based on the components of the entity that
management regularly reviews for its operational decision making. This review process is carried out by the Chief
Operating Decision Maker (“CODM”) for the purpose of allocating resources and assessing the performance of each
segment. The amounts reported for each operating segment is the same measure reviewed by the CODM in allocating
resources and assessing performance of that segment.
For management purposes, the Group operates under three operating segments comprised of the Group’s lithium,
titanium/vanadium and ‘other segments’ which comprises other minor exploration projects and mineral process
technology businesses. The titanium/vanadium operating segment is separately identified given it possess different
competitive and operating risks and meets the quantitative criteria as set out in the AASB 8. The ‘other segments’
category is the aggregation of all remaining operating segments given sufficient reportable operating segments have
been identified.
Notes to the Consolidated Financial Statements
Neometals Ltd | Annual Report 2024
91
Notes to the Consolidated Financial Statements
For the year ended 30 June 2024
Reportable operating segments
Lithium
$
Vanadium &
Titanium
$
Other
$
Corporate
$
Total
$
Revenue from external customers
-
-
-
-
-
Cost of sales
-
-
-
-
-
Gross profit/(loss)
-
-
-
-
-
Other income
-
-
-
544,119
544,119
Share of loss of JV and associate
(6,254,409)
(2,361,858)
(438,965)
-
(9,055,232)
Impairment on investment in associate & JV
(1,143,956)
(1,656,458)
(6,599,531)
-
(9,399,945)
Depreciation and Amortisation
-
(14,382)
-
(298,764)
(313,146)
Total expenses
(659,818)
(6,653,438)
(803,460)
(12,142,692)
(20,259,408)
Loss before tax
(8,058,183)
(10,686,136)
(7,841,956)
(11,897,337)
(38,483,612)
Loss for the year from discont’d operations
-
(30,945,885)
-
-
(30,945,885)
Income tax benefit
-
-
-
316,580
316,580
Consolidated loss after tax
(8,058,183)
(41,632,021)
(7,841,956)
(11,580,757)
(69,112,917)
Total segment assets
2,744,994
341,332
7,376,284
11,457,403
21,920,013
Assets classified as held for sale
-
20,214,451
-
-
20,214,451
Total assets
2,744,994
20,555,783
7,376,284
11,457,403
42,134,464
As at 30 June 2024
Revenue from external customers
-
-
-
-
-
Cost of sales
-
-
-
-
-
Gross profit/(loss)
-
-
-
-
-
Other income
-
-
-
1,061,585
1,061,585
Share of loss of JV and associate
(3,851,175)
(3,447,626)
(3,412,514)
-
(10,711,315)
Impairment on investment in
associate & JV
(2,716,703)
-
(1,273,045)
-
(3,989,748)
Depreciation and Amortisation
-
(7,571)
-
(412,551)
(420,122)
Total expenses
(213,765)
(3,182,316)
(670,161)
(17,857,375)
(21,923,617)
Profit/(loss) before tax
(6,781,643)
(6,637,513)
(5,355,720)
(17,208,341)
(35,983,217)
Loss for the year from discontinued
operations
-
(195,807)
-
-
(195,807)
Income tax benefit
-
-
-
1,374,655
1,374,655
Consolidated profit/(loss) after tax
(6,781,643)
(6,833,320)
(5,355,720)
(15,833,686)
(34,804,369)
As at 30 June 2023
(i) The carrying value of the investment in associate has been impaired down to its carrying value on a per share basis, resulting in a
$6,599,531 expense (2023: $1,273,045). (See note 22)
Geographical information
The Group operates in four geographical areas being Germany, Finland, Portugal and Australia (country of domicile).
Total segment assets
6,000,490
48,796,923
15,291,630
27,654,518
97,743,561
Total assets
6,000,490
48,796,923
15,291,630
27,654,518
97,743,561
For the year ended 30 June 2023
Neometals Ltd | Annual Report 2024
92
(a) Equity interests in related parties
Equity interests in subsidiaries
Details of the percentage of ordinary shares held in subsidiaries are disclosed in note 23 to the financial statements.
Equity interests in joint arrangements
Details of the percentage of ordinary shares held in joint arrangements are disclosed in note 21 to the financial
statements.
(b) Key management personnel remuneration
Details of Key Management Personnel remuneration are disclosed on 40-52 of the Remuneration Report.
(c) Key management personnel equity holdings
Fully paid ordinary shares of Neometals Ltd
2024
Balance
at
01/07/2023
No.
Balance
on
appoint.
No.
Received on
exercise of
perf rights
No.
Net
other
change
No.
Balance
at
30/06/2024
No.
Balance
held
nominally
No.
Non-executive directors
S. Cole
1,951,771
-
54,499
250,785
2,257,055
-
D. Ritchie
335,269
-
40,875
47,018
423,162
-
N. Streltsova
280,269
-
40,875
40,143
361,287
-
L. Guthrie
231,357
-
8,175
27,534
267,066
-
Executive director
C. Reed
7,868,589
-
1,491,079
776,411
10,136,079
-
J. Purdie(1)
471,732
-
40,875
58,967
571,574
-
Other executives
M. Tamlin
983,622
-
604,536
40,000
1,628,158
-
J. Carone
766,462
-
532,844
(129,306)
1,170,000
-
D. Townsend
410,405
-
581,284
(490,642)
501,047
-
M. Gray(2)
7,770
-
-
-
7,770
-
C. Reiche(2)
-
-
-
-
-
-
Total
13,307,246
-
3,395,042
620,910
17,323,198
-
(1) Jenny Purdie was appointed Chief Operating Officer on 24 May 2024.
(2) In September 2023, Merrill Gray resigned from the position of Head of Recycling. In October 2023, Christian Reiche was appointed
Head of Recycling.
25. Related Party Disclosures
Notes to the Consolidated Financial Statements
Neometals Ltd | Annual Report 2024
93
Notes to the Consolidated Financial Statements
2023
Balance
at
01/07/2022
No.
Balance
on
appoint.
No.
Received on
exercise of
perf rights
No.
Net
other
change
No.
Balance
at
30/06/2023
No.
Balance
held
nominally
No.
Non-executive directors
S. Cole
1,890,160
-
61,611
-
1,951,771
-
D. Ritchie
209,819
-
55,450
70,000
335,269
-
N. Streltsova
224,819
-
55,450
-
280,269
-
J. Purdie
330,072
-
55,450
86,210
471,732
-
L. Guthrie
220,267
-
11,090
-
231,357
-
Executive director
C. Reed
6,882,172
-
986,417
-
7,868,589
-
Other executives
M. Tamlin
535,853
-
447,769
-
983,622
-
J. Carone
515,000
-
394,668
(143,206)
766,462
-
D. Townsend
251,057
430,547
(271,199)
410,405
-
M. Gray
-
-
-
7,770
7,770
-
Total
11,059,219
-
2,498,452
(250,425)
13,307,246
-
Share options of Neometals Ltd
No options were issued to related parties during the current period (2023: nil).
Performance rights of Neometals Ltd
In the current reporting period the Company granted 2,449,947 (2023: 944,284) performance rights to executives and KMP pursuant to
the Company’s Performance Rights Plan.
Further details of performance rights granted are contained in note 9 to the financial statements.
Performance rights granted to related parties
The following tables summarises information relevant to the current financial year in relation to the grant of performance rights to
KMP as part of their remuneration. Performance rights are issued by Neometals Ltd.
25. Related Party Disclosures (Cont.)
Neometals Ltd | Annual Report 2024
94
Name
During the Financial Year
Grant date
No. granted
No. vested
Fair value at
grant date
Earliest
exercise
date
Consideration
payable on
exercise
KMP:
N. Streltsova(1)
12/07/2023
91,175
91,175
45,000
30/06/2024
-
D. Ritchie(1)
12/07/2023
91,175
91,175
45,000
30/06/2024
-
S. Cole(1)
12/07/2023
162,089
162,089
80,000
30/06/2024
-
J. Purdie(1)
12/07/2023
121,567
121,567
60,000
30/06/2024
-
L. Guthrie(1)
12/07/2023
25,326
25,326
12,500
30/06/2024
-
C. Reed(2)
11/09/2023
571,512
-
204,030
30/06/2026
-
J. Carone(2)
11/09/2023
314,759
-
112,369
30/06/2026
-
M. Tamlin(2)
11/09/2023
275,414
-
98,323
30/06/2026
-
D. Townsend(2)
11/09/2023
275,414
-
98,323
30/06/2026
-
M. Gray(2)
11/09/2023
261,840
-
93,477
30/06/2026
-
C. Reiche(2)
19/01/2024
259,676
-
92,704
30/06/2026
-
Total
2,449,947
491,332
941,726
-
25. Related Party Disclosures (Cont.)
(1) 30 June 2024 Non-Executive Directors became entitled to securities whose vesting conditions were the subject to the rules of the Performance
Rights Plan.
(2) The number of performance rights that will actually vest, if any, is determined by the Company’s performance based on Neometals relative and
absolute TSR compared to the comparative group of companies over a 3 year period and Business Plan strategic objectives.
Notes to the Consolidated Financial Statements
Neometals Ltd | Annual Report 2024
95
Notes to the Consolidated Financial Statements
Name
Grant date
Fair value
of rights
at grant
date
$
Granted
Vested
during the
financial
year
No.
Forfeited/
lapsed during
the financial
year
No.
Ordinary
shares
issued on
exercise of
rights
No.
KMP:
C. Reed(1)
7/12/2020
307,659
1,656,754
-
165,675
1,491,079
J. Carone(1)
7/12/2020
123,686
666,055
-
133,211
532,844
M. Tamlin(1)
7/12/2020
140,328
755,670
-
151,134
604,536
D. Townsend(1)
7/12/2020
134,931
726,605
-
145,321
581,284
C. Reed(1)
11/10/2021
442,592
574,049
-
-
-
J. Carone(1)
11/10/2021
181,867
235,885
-
-
-
M. Tamlin(1)
11/10/2021
202,074
262,094
-
-
-
D. Townsend(1)
11/10/2021
202,074
262,094
-
-
-
C. Reed(1)
5/09/2022
276,034
239,904
-
-
-
J. Carone(1)
5/09/2022
166,744
144,919
-
-
-
M. Tamlin(1)
5/09/2022
145,901
126,804
-
-
-
D. Townsend(1)
5/09/2022
145,901
126,804
-
-
-
M. Gray(1)
5/09/2022
138,709
120,554
-
120,554
-
N. Streltsova(2)
4/08/2022
45,000
40,875
-
-
40,875
D. Ritchie(2)
4/08/2022
45,000
40,875
-
-
40,875
S. Cole(2)
4/08/2022
60,000
54,499
-
-
54,499
J. Purdie(2)
4/08/2022
45,000
40,875
-
-
40,875
L. Guthrie(2)
4/08/2022
9,000
8,175
-
-
8,175
C. Reed(1)
11/09/2023
204,030
571,512
-
-
-
J. Carone(1)
11/09/2023
112,369
314,759
-
-
-
M. Tamlin(1)
11/09/2023
98,323
275,414
-
-
-
D. Townsend(1)
11/09/2023
98,323
275,414
-
-
-
M. Gray(1)
11/09/2023
93,477
261,840
-
261,840
-
C. Reiche(1)
19/01/2024
92,704
259,676
-
-
-
N. Streltsova(3)
12/07/2023
45,000
91,175
91,175
-
-
D. Ritchie(3)
12/07/2023
45,000
91,175
91,175
-
-
S. Cole(3)
12/07/2023
80,000
162,089
162,089
-
-
J. Purdie(3)
12/07/2023
60,000
121,567
121,567
-
-
L. Guthrie(3)
12/07/2023
12,500
25,326
25,326
-
-
Total
3,754,226
8,533,437
491,332
977,735
3,395,042
25. Related Party Disclosures (Cont.)
Details of performance rights held by KMP and of shares issued during the financial year as a result of the vesting of performance
rights:
(1) The number of performance rights that will actually vest, if any, is determined by the Company’s performance based on Neometals TSR compared to
the comparative group of companies over the 3-year period as set out in the employee’s employment contract. As a result of the testing of the
Company’s performance over this period no rights vested (2023: 3,209,743).
(2) Under the Performance Rights Plan, Non-Executive Directors were invited to forgo part of their fees for their services in exchange for performance
rights. At 30 June 2023 all performance rights have vested. As a result of the testing of the Company’s performance over this period, 185,299 rights
vested and shares were issued (2023: 239,051).
(3) Under the Performance Rights Plan, Non-Executive Directors were invited to sacrifice part of their fees for their services in exchange for
performance rights. At 30 June 2024 all performance rights have vested.
Neometals Ltd | Annual Report 2024
96
25. Related Party Disclosures (Cont.)
The performance rights granted entitle the grantee to one fully paid ordinary share in Neometals Ltd for nil cash consideration on
satisfaction of the vesting criteria.
(d) Transactions with other related parties
Other related parties include:
• The parent entity;
• Associates;
• Joint ventures in which the entity is a venturer;
• Subsidiaries;
• Key Management Personnel of the Group; and
• Other related parties.
The Group has provided loans to its joint venture, Reed Advanced Materials Pty Ltd, and equity contributions to its joint ventures,
Primobius GmbH, Recycling Industries Scandinavia AB and ACN 630 589 507 Pty Ltd (see note 21).
Transactions involving the parent entity
The directors elected for wholly-owned Australian entities within the Group to be taxed as a single entity from 1 July 2003.
No other transactions occurred during the financial year between entities in the wholly owned Group.
(e) Controlling entities
The ultimate parent entity of the Group is Neometals Ltd, a company incorporated and domiciled in Australia.
26. Auditors Remuneration
Details of the amounts paid or payable to the auditor for the audit and other assurance services during the year are as follows:
2024
$
2023
$
Audit services - Deloitte Touche Tohmatsu
Fees to the group auditor for the audit or review of the statutory financial reports
of the Company, subsidiaries and joint operations
256,420
289,006
Fees for other assurance and agreed-upon procedures under other legislation or
contractual arrangements - Australia
-
14,621
Total remuneration of Deloitte Touche Tohmatsu
256,420
303,627
Audit services – Other firms
Fees for auditing the financial reports of any controlled entities
-
24,684
Total remuneration of other firms
-
24,684
Notes to the Consolidated Financial Statements
Neometals Ltd | Annual Report 2024
97
Notes to the Consolidated Financial Statements
27. Notes to the Statement of Cash Flows
(a) Reconciliation of cash and cash equivalents
For the purposes of the cash flow statement, cash and cash equivalents includes cash on hand and in banks and investments in
money market instruments, net of outstanding bank overdrafts. Cash and cash equivalents at the end of the financial year as shown in
the Cash Flow Statement is reconciled to the related items in the statement of financial position as follows:
(b) Reconciliation of profit / (loss) for the period to net cash flows from operating activities
2024
$
2023
$
Cash and cash equivalents at the end of the financial year
9,103,833
24,438,695
9,103,833
24,438,695
2024
$
2023
$
(Loss) / Profit for the year
(69,112,917)
(34,804,369)
Impairment (reversal)/expense
12,820,053
3,989,748
Loss on disposal of financial assets
274,140
150,247
Loss on disposal of subsidiary
-
212,473
Share of loss in associate
438,965
3,412,514
Share of loss in Joint Venture
8,616,266
7,298,801
Net loss on financial assets measured at FVTPL
778,241
512,769
Interest received on investments
(526,963)
(1,056,585)
Finance costs recognised in profit or loss
102,305
29,859
Depreciation and amortisation of non-current assets
491,176
523,023
Equity settled share-based payment
894,935
1,747,437
Loss from discontinued operation
30,945,885
-
Net foreign exchange (gain)/loss
48,563
(4,204)
(Increase) / decrease in assets:
Current receivables
1,609,307
(1,513,597)
Other
47,987
49,748
Increase / (decrease) in liabilities:
Current payables
(1,706,013)
(131,597)
Deferred tax liability
-
(782,904)
Provisions and other
764,512
(31,905)
Net Cash used in operating activities
(13,513,558)
(20,398,542)
Neometals Ltd | Annual Report 2024
98
28. Financial Instruments
(a) Financial risk management objectives
The Consolidated Entity does not enter into derivative financial instruments for speculative or hedging purposes.
(b) Significant accounting policies
Details of the significant accounting policies and methods adopted, including the criteria for recognition, the basis of measurement
and the basis on which income and expenses are recognised, in respect of each class of financial asset, financial liability and equity
instrument are disclosed in note 2 to the financial statements.
(c) Interest rate risk
The following tables detail the Group’s exposure to interest rate risk:
(i) The balances represent two term deposits that are restricted in their use and are classified in the current reporting period as
other financial assets. Additional information on all other term deposits is provided at notes 11 and 27(b). The financial assets have
contractual maturities of less than one year, however they are classified as non-current in the statement of financial position as they
are not accessible to the Group due to restrictions placed on accessing the funds.
(ii) Non interest bearing liabilities are due within 30 days.
2024
Weighted
average
effective
interest
rate
%
Variable
interest
rate
%
Maturity dates
Non
interest
bearing
$
Total
$
Less than
1 year
$
1-5
years
$
More than
5 years
$
Financial assets:
Cash and cash equivalents AUD
2.06%
-
5,399,939
-
-
-
5,399,939
Cash and cash equivalents EUR
0.00%
-
3,652,724
-
-
-
3,652,724
Cash and cash equivalents USD
0.00%
-
7,094
-
-
-
7,094
Cash and cash equivalents GBP
0.00%
-
44,076
-
-
-
44,076
Bond term deposits (i)
4.92%
-
620,712
-
-
-
620,712
Cash deposits trust
0.00%
-
-
-
-
-
-
Trade and other receivables
0.00%
-
-
-
-
967,858
967,858
Financial liabilities:
Trade payables(ii)
-
-
-
-
-
340,789
340,789
Lease liability
7.77%
-
128,296
872,262
3,110,363
-
4,110,921
Notes to the Consolidated Financial Statements
Neometals Ltd | Annual Report 2024
99
Notes to the Consolidated Financial Statements
28. Financial Instruments (Cont.)
2023
Weighted
average
effective
interest
rate
%
Variable
interest
rate
%
Maturity dates
Non
interest
bearing
$
Total
$
Less than
1 year
$
1-5
years
$
More than
5 years
$
Financial assets:
Cash and cash equivalents AUD
3.77%
-
24,013,096
-
-
-
24,013,096
Cash and cash equivalents EUR
0.00%
-
208,846
-
-
-
208,846
Cash and cash equivalents USD
0.00%
-
127,552
-
-
-
127,552
Cash and cash equivalents GBP
0.00%
-
89,199
-
-
-
89,199
Bond term deposits (i)
4.17%
-
200,000
-
-
-
200,000
Cash deposits trust
0.00%
-
-
-
-
-
-
Trade and other receivables
0.00%
-
-
-
-
2,031,604
2,031,604
Financial liabilities:
Trade payables
-
-
-
-
-
2,190,866
2,190,866
Lease liabilities
7.77%
-
285,625
652,049
-
-
937,674
(i) The balances represent two term deposits that are restricted in their use and are classified in the current reporting period as
other financial assets. Additional information on all other term deposits is provided at notes 11 and 27(b). The financial assets have
contractual maturities of less than one year, however they are classified as non-current in the statement of financial position as they
are not accessible to the Group due to restrictions placed on accessing the funds.
Neometals Ltd | Annual Report 2024
100
28. Financial Instruments (Cont.)
(d) Credit risk management
Credit risk refers to the risk that counterparty will default on
its contractual obligations resulting in financial loss to the
consolidated entity. The consolidated entity has adopted a
policy of only dealing with credit-worthy counterparties and
obtaining sufficient collateral where appropriate as a means
of mitigating the risk of financial loss from defaults. The
consolidated entity exposure and the credit ratings of
its counterparties are continuously monitored and the
aggregate value of transactions concluded is spread
amongst approved counterparties.
The consolidated entity does not have any significant
credit risk exposure to any single counterparty or any group
of counterparties having similar characteristics other than
the Joint Venture. The credit risk on liquid funds is limited
because the counterparties are banks with high credit-
ratings assigned by international credit-rating agencies.
(e) Liquidity risk management
Ultimate responsibility for liquidity risk management rests
with the board of directors, who have built an appropriate
liquidity risk management framework for the management
of the Group’s short, medium and long-term funding and
liquidity management requirements. The Group manages
liquidity risk by maintaining adequate reserves and banking
facilities, and by continuously monitoring forecast and
actual cash flows and matching the maturity profiles of
financial assets and liabilities.
The undiscounted lease liabilities balance is $4,110,921, split
between $128,296 with a maturity date of less than 1 year,
$872,262 with a maturity date of 1-5 years, and $3,110,363
with a maturity date of more than 5 years.
In addition to financial liabilities in note 14, the Company is
required to meet minimum spend commitments to maintain
the tenure over the Company’s mineral exploration areas as
described in note 19.
(f) Fair value
The carrying amount of financial assets measured at
amortised cost recorded in the financial statements
approximates their respective fair values.
Financial assets carried at fair value through profit or loss
comprise investments predominantly in Australian listed
equities. Their fair value is determined using key inputs
of quoted bid prices in an active market multiplied by the
number of shares held, which is Level 1 in the fair value
hierarchy. Where quoted prices in an active market are
unable to be used to determine fair value, alternative
valuation methods are used to most accurately represent
the equities fair value which for the investments held by the
entity include other observable inputs and is therefore
categorised as level 3 on the fair value hierarchy.
Other than the investments held at fair value, the Group
does not hold any instruments that are measured at fair
value. There have been no transfers between fair value
classes during the year. The sensitivity analysis below has been
calculated based on the exposure to equity price risk at the
end of the reporting period for financial assets carried at
fair value through profit or loss. A 25 percent increase and
decrease has been used to assess the sensitivity of the
equity price risk and represents management’s assessment
of a reasonably possible change in equity pricing.
If equity prices had been 25 percentage higher/lower and
all other variables were held constant, the Group’s profit for
the year ended 30 June 2024 would decrease/increase by
$996,779 (2023: $1,298,386).
(g) Capital management
The board’s policy is to endeavour to maintain a strong
capital base so as to maintain investor, creditor and market
confidence and to sustain future development of the
business. The Group sources any additional funding
requirements from either debt or equity markets depending
on the market conditions at the time the funds are sourced
and the purpose for which the funds are to be used.
The Group is not subject to externally imposed capital
requirements.
(h) Interest rate risk management
The Group is exposed to interest rate risk as the Group has
funds on deposit as security for the head office lease.
The sensitivity analysis below has been calculated based
on the exposure to interest rates at the end of the reporting
period. A 50 basis point increase and decrease has been
used when reporting the interest rate risk and represents
management’s assessment of the potential change in
interest rates.
If interest rates had been 50 basis points higher/lower and
all other variables were held constant, the Group’s profit for
the year ended 30 June 2024 would decrease/increase by
$48,917 (2023: decrease/increase $123,193). This is mainly
attributable to the Group’s exposure to interest rates on the
maturity of its term deposits.
29. Contingent Liabilities
The Group has no contingent liabilities as at 30 June 2024
(2023: nil).
Notes to the Consolidated Financial Statements
Neometals Ltd | Annual Report 2024
101
Notes to the Consolidated Financial Statements
30. Events After the Reporting Period
On 11 July 2024, Neometals announced that recently appointed Chief Financial Officer (on 1 July 2024), Chris Kelsall, was also
appointed Company Secretary (on 12 July 2024) to replace the departing Mr Jason Carone.
On 19 August 2023, Neometals announced the successful completion of a subscription agreement with existing long-term
shareholder Mr William Robert Richmond for approximately US$3m through the issue of 66,666,666 new ordinary fully paid shares.
The shares were issued on 20 August 2024.
On 22 August 2024, Neometals announced a strategy update for a restructure of the company to right-size the organisation and its
underlying cost base to reflect a new strategic refocus.
On 16 September 2024, Neometals 88% owned entity, Recycling Industries Scandinavia AB (“RISAB”), executed a project agreement
with EIT RawMaterials GmbH to support the development of the Finnish vanadium recovery project (“VRP1”) via a €0.5M (c. A$829k)
grant to RISAB’s 100% owned VRP1 holding company, Novana Oy (“Novana”).
On 17 September 2024, Neometals was served with documents relating to proceedings in the Federal Court of Australia which have
been commenced against it by an employee affected by the corporate restructure announced on 22 August 2024.
On 23 September 2024, Neometals announced a gold exploration target related to the Barrambie Project.
Other than stated above, no matters or circumstances have arisen since the end of the financial year that have significantly affected,
or may significantly affect the operations, results of operations or state of affairs of the Group in subsequent financial years.
Consolidated Entity Disclosure Statement
As at 30 June 2024
The Consolidate Entity Disclosure Statement has been prepared in accordance with the Corporations Act 2001 and includes required
information for each entity that was part of the consolidated entity as at the end of the financial year.
Section 295 (3A) of the Corporations Act 2001 defines tax residency as having the meaning in the Income Tax Assessment Act 1997.
The determination of tax residency involves judgement as there are currently several different interpretations that could be adopted,
and which could give rise to a different conclusion on residency.
1 This entity is part of the tax-consolidated group under Australian taxation law, for which Neometals Ltd is the head entity.
Body Corporate
Tax residency
Name of
Entity
Entity
Type
Place formed or
incorporated
% of share
capital held
Australian or
foreign
Foreign
jurisdiction
Neometals Ltd
Body Corporate
Australia
N/A
Australia1
N/A
Australian Titanium Pty
Body Corporate
Australia
100
Australia1
N/A
Alphamet Management Pty Ltd
Body Corporate
Australia
100
Australia1
N/A
Inneovation Pty Ltd
Body Corporate
Australia
100
Australia1
N/A
Neometals Energy Pty Ltd
Body Corporate
Australia
100
Australia1
N/A
Neomaterials Pty Ltd
Body Corporate
Australia
100
Australia1
N/A
Neometals Investments Pty Ltd
Body Corporate
Australia
100
Australia1
N/A
Urban Mining Pty Ltd
Body Corporate
Australia
100
Australia1
N/A
Adamant Technologies Pty Ltd
Body Corporate
Australia
100
Australia1
N/A
Avanti Materials Ltd
Body Corporate
Australia
100
Australia1
N/A
Ecometals Pty Ltd
Body Corporate
Australia
100
Australia1
N/A
Avanti Minerals Ltd
Body Corporate
Australia
100
Australia1
N/A
Recycling Industries Scandinavia
AB
Body Corporate
Sweden
88
Foreign
Sweden
Novana Oy
Body Corporate
Finland
88
Foreign
Finland
Neometals Ltd | Annual Report 2024
102
Additional
ASX Information
06
Range
Total holders
Units
% Units
1 – 1,000
2,084
1,191,482
0.17
1,001 – 5,000
4,231
11,691,026
1.69
5,001 – 10,000
2,087
16,330,356
2.37
10,001 – 100,000
3,710
122,857,337
17.81
100,001 over
730
537,827,893
77.96
Total
12,842
689,898,094
100.00
Ordinary Fully Paid Shares (Total)
Composition : ORD
Range of units as of 17 September 2024
Unmarketable parcels
Range
Minimum
parcel size
Holders
Units
Minimum $ 500.00 parcel at $ 0.0900 per unit
5,556
6,527
14,009,259
Additional ASX Information
Neometals Ltd | Annual Report 2024
103
Additional ASX Information
Top holders (ungrouped) as of 17 September 2024
Rank
Name
Units
% Units
1
MR WILLIAM ROBERT RICHMOND
68,592,646
9.94
2
BNP PARIBAS NOMINEES PTY LTD
34,839,901
5.05
3
MR DAVID JOHN REED
26,001,674
3.77
4
CITICORP NOMINEES PTY LIMITED
25,553,085
3.70
5
FARJOY PTY LTD
17,905,581
2.60
6
MR KENNETH JOSEPH HALL
16,000,000
2.32
7
BNP PARIBAS NOMS PTY LTD
13,788,427
2.00
8
MR MICHAEL SYDNEY SIMM
7,774,649
1.13
9
MR FRANCIS JAMES ROBINSON
7,750,000
1.12
10
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
7,683,085
1.11
11
BNP PARIBAS NOMINEES PTY LTD
7,108,322
1.03
12
J P MORGAN NOMINEES AUSTRALIA PTY LIMITED
6,421,514
0.93
13
ROSSBOW PTY LTD
5,780,000
0.84
14
HAREWOOD PTY LTD
5,133,750
0.74
15
RS LINFOOT INVESTMENTS PTY LTD
5,023,376
0.73
16
ZERO NOMINEES PTY LTD
4,744,931
0.69
17
BOND STREET CUSTODIANS LIMITED
4,427,655
0.64
18
PESYAN PTY LTD
4,297,040
0.62
19
FANO PTY LTD
4,250,000
0.62
20
MR JAY HUGHES + MRS LINDA HUGHES
4,250,000
0.62
Neometals Ltd | Annual Report 2024
104
Substantial Shareholder
Mr William Robert Richmond: 68,592,646 ordinary fully paid shares representing 9.94% (notice dated 17 Sep 24).
Voting rights
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.
Other
Registers of Securities are held at the following addresses:
Level 1, 1292 Hay Street, West Perth WA 6005
List of tenement interests
As at 30 June 2024, the Company has an interest in the following projects and tenements which are all located within Western Australia.
Project name
Licence name
Beneficial interest
Status
Barrambie
E20/1037
100%
Pending
Barrambie
E57/0769
100%
Live
Barrambie
E57/0770
100%
Live
Barrambie
E57/1041
100%
Live
Barrambie
E57/1220
100%
Pending
Barrambie
E57/1244
100%
Pending
Barrambie
E57/1245
100%
Pending
Barrambie
E57/1379
100%
Live
Barrambie
E57/1401
100%
Pending
Barrambie
E57/1437
100%
Pending
Barrambie
L20/0055
100%
Live
Barrambie
L20/0080
100%
Live
Barrambie
L20/0081
100%
Live
Barrambie
L57/0030
100%
Live
Barrambie
L57/0064
100%
Pending
Barrambie
L57/0065
100%
Pending
Barrambie
L57/0066
100%
Live
Yellowdine
M57/0173
100%
Live
Queen Victoria Rocks
E15/1416
100%
Live
Other information
The Company has a primary listing on ASX and a secondary listing on the London Stock Exchange’s AIM.
Additional ASX Information
Neometals Ltd | Annual Report 2024
105
Corporate Directory
Corporate
Directory
07
Directors
Steven Cole
Non-Executive Chairman
Christopher Reed
Managing Director
Dr Jenny Purdie
Executive Director
Douglas Ritchie
Non-Executive Director
Les Guthrie
Non-Executive Director
Company Secretary
Christopher Kelsall
Registered Office
Level 1, 1292 Hay Street, West Perth WA 6005
Contact Details
Phone: +61 8 9322 1182
Fax: +61 8 9321 0556
Email: neometals.com.au
Auditors
Deloitte Touche Tohmatsu Brookfield Place, Tower 2
Level 7, 123 St Georges Terrace, Perth WA 6000
Share Registry
ASX
Computershare Investor Services Pty Ltd
Level 17, 221 St Georges Terrace, Perth WA 6000
AIM
Computershare Investor Services PLC
The Pavilions, Bridgwater Road, Bristol BS99 6ZZ
Nominated Advisor
Cavendish Securities PLC
One Bartholomew Close, London EC1A 7BL
Stock Exchange Listing
Neometals Ltd are listed on the Australian Stock Exchange
(Home Branch – Perth)
ASX & AIM: NMT
US OTCX Market: NMTAY
Deutsche Boerse: 9R9
ACN: 099 116 631
ABN: 89 099 116 631
Annual General Meeting
The 2024 Annual General Meeting of Neometals Ltd
ABN 89 099 116 631 (Company) will be held at:
3:00pm (AWST) Friday, 22 November 2024
Parmelia Hilton Perth, 14 Mill Street, Perth WA 6000
Neometals Ltd | Annual Report 2024
106
Level 1, 1292 Hay St
West Perth WA 6005
T: +61 8 9322 1182 | E: info@neometals.com.au
neometals.com.au
Neometals | Annual Report 2024
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