A.C.N. 006 639 514
ANNUAL REPORT AND
FINANCIAL STATEMENTS
FOR THE YEAR ENDED
30 JUNE 2024
2
3
17
18
24
25
26
27
28
29
39
40
41
45
Reedy Lagoon Corporation Limited
Contents
30 June 2024
Chairman's letter
Review of operations
Tenement schedule
Directors' report
Auditor's independence declaration
Consolidated Statement of profit or loss and other comprehensive income
Consolidated Statement of financial position
Consolidated Statement of changes in equity
Consolidated Statement of cash flows
Notes to the financial statements
Consolidated entity disclosure statement
Directors' declaration
Independent auditor's report to the members of Reedy Lagoon Corporation Limited
Shareholder information
Corporate directory
47
1
Level 44, 600 Bourke Street
Melbourne VIC Australia
Ph: (03) 8420 6280
Postal Address: P O Box 2236,
Richmond VIC 3121 Australia
Email: info@reedylagoon.com.au
reedylagoon.com.au
Dear Shareholders
Annual Report for Financial Year 2024
After Financial Year 2024 the Board decided to discontinue its lithium projects located in
Nevada, USA.
The market conditions for lithium products are subdued resulting in major operators reducing
production and some operations being put on care and maintenance. Market analysis
suggests this situation will continue for some time. The Board considered it commercially
prudent to reduce the Company’s exposure in the lithium sector.
Accordingly, the Company is focused on its gold and iron projects located in Western Australia.
At the Burracoppin Gold project, targets for follow-up have been identified in magnetic survey
data acquired over areas where anomalous gold has been recovered in surface soil samples.
The Company is presently seeking to raise $1.2 million from shareholders under a 1 for 1
entitlement offer together with a related offer under which shareholders can apply for additional
shares. Funds are being sought under this offer in order to undertake soil sampling and first
stage drilling at Burracoppin Gold.
The Burracoppin Iron project has mineralisation identified in drilled core samples which testing
has shown is well suited as feed for processing into high purity pig iron. The next stage of
work planned at the Burracoppin Iron project is drilling to establish a mineral resource. To
fund this work, the Company is seeking a joint venture partner to earn equity in the project by
conducting this next stage.
Thank you for your continued support.
Yours sincerely,
Jonathan Hamer
Chairman
Reedy Lagoon Corporation Limited
Review of operations
30 June 2024
3
Overview
Reedy Lagoon has exploration projects for
gold and magnetite.
During the 2024 financial year and in the
period up to the date of this Review of
Operations, the Company conducted
exploration for gold, lithium and iron and
sought joint venture partners for its lithium
and iron projects.
Gold exploration included acquiring and
interpreting airborne (drone) magnetic data
over 4 gold prospect areas to advance target
selection for subsequent follow-up up on its
Burracoppin Gold project.
Work on the Burracoppin Iron project focussed on updating and planning the resource definition
drilling at its magnetite deposit and seeking a joint venture farm-in partner.
Work on the lithium projects located in Nevada, USA was conducted during the report period and is
described in the following pages. However following the end of the financial year the Company
elected to reduce its exposure to the lithium sector and discontinued its Nevada lithium projects.
The Company’s current focus is on exploring its Burracoppin Gold project and securing a joint venture
partner for the Burracoppin Iron project.
Figure 1.
Reedy Lagoon Corporation Limited
Review of operations
30 June 2024
4
Review of Projects
Gold
Western Australia
RLC 100%
Burracoppin Gold
E70/4941, E70/5467, E70/5544 (241 km2)
Reedy Lagoon is targeting gold mineralisation at Burracoppin in the vicinity of its magnetite deposit
(part of the iron project) located 260 kilometres east of Perth in Western Australia. The project is 60
kilometres north of the Tampia gold mine and 30 kilometres southwest from the Edna May gold mine
(both owned by Ramelius Resources Limited) (refer to Figure 2).
The focus of exploration includes a structural feature, the Yandina Shear Zone, and areas adjacent to
it. Most of the 30 kilometre strike length of the Yandina Shear Zone within the project area has seen
very little exploration. Exploration using soil sampling along traverse lines with low detection gold assay
(lower detection limit 0.1 ppb Au) and detailed magnetic data is generating encouraging results.
Figure 2. Burracoppin Gold Project. Yandina Shear Zone, project tenure and location over
regional geology.
Reedy Lagoon Corporation Limited
Review of operations
30 June 2024
5
Surface soil sampling conducted during prior
report periods identified elevated levels of
gold in soil samples which are shown on
Figure 3 as “prospect areas”: Lady Janet,
Windmills, Shear Luck and Zebra.
Magnetic data were acquired by unmanned
airborne vehicle (UAV or drone) over each of
the four gold prospects during the year. The
data were acquired at a nominal 30 metres
above ground level along east-west lines at
25 metre spacings. The survey locations are
shown on Figure 3 and in more detail on 4,
5, 6, and 7. A total of 1,067 line kilometres of
ultra-high quality, low noise UAV magnetics
were acquired.
Interpretation of the magnetic data has
mostly been restricted to the areas covered
by the drone survey. However, where the
surrounding data allow, features have been
extrapolated
into
it.
Results
from
interpretation of the magnetic data acquired
are shown in images that follow for each
prospect. Figures 4, 5, 6, and 7 each
comprise 3 panels. The left panel shows the
gold in soil data and position of the Yandina
Shear Zone (WA DMIRS 2021) on a
background of regional Total Magnetic
Intensity (TMI). Structure interpreted from
the UAV magnetics is shown in the central
panel. The panel on the right is an image of
the processed UAV magnetics within the
survey boundary surrounded by regional
magnetics. The processing applied in the
image is an Automatic Gain Control filter of
the Total Magnetic Intensity (AGC). (For
more detail refer ASX release 10/04/2024).
Figure 3. Burracoppin Gold project. Magnetic survey
areas flown during the year are shown in outline over
previously completed soil sample traverse lines at
the Lady Janet, Windmills, Shear Luck and Zebra
prospects.
Reedy Lagoon Corporation Limited
Review of operations
30 June 2024
6
Lady Janet Prospect
The Prospect comprises a zone located and extending at least 1,000m along and adjacent to the
regional Yandina Shear Zone (“YSZ”) from which anomalous levels of gold has been identified in gold
assay data from soil sampling (refer ASX release 3/07/2023).
Interpretation of the new high-quality magnetic data indicates flexures in the Yandina Shear Zone.
Flexures in structures may be dilation zones, which may host mineralisation. This upgrades the existing
gold-in-soil anomaly targets.
Targets for follow up include:
o
5 targets identified in the magnetic data were selected for soil sampling to recover
geochemical data to aid targeting gold-bearing mineralised systems for drill testing, and
o
2 targets comprising possible dilation zones associated with flexures interpreted in the
magnetic data and located within the Yandina Shear Zone which were upgraded to
warrant drill testing.
(Refer ASX release 31/07/2024).
Figure 4. Lady Janet prospect. Gold in soil data shown over regional magnetics (TMI), LH panel;
Structure interpreted using additional drone survey data, centre panel; processed drone survey
magnetics (AGC), RH panel.
Reedy Lagoon Corporation Limited
Review of operations
30 June 2024
7
Windmills prospect
The Windmills Prospect is about 1.5 kilometres east from the Yandina Shear Zone. The prospect
comprises a zone measuring at least 1,400 metres by 400 metres from which anomalous levels of
gold have been identified in gold assay data from soil sampling (refer ASX release 28/09/2022).
The UAV survey was significantly degraded at the Windmills prospect by the presence of wind
turbines and a high-tension power line which precluded flight over about 25% of the survey area and
about 50% of the prospect area including areas of highest gold anomalism identified in soil sample
data (refer to Figure 5).
A structural zone, subparallel to the Yandina Shear, was interpreted from the available data recovered
by the UAV survey which upgraded the prospectivity of gold-in-soil anomalies. A substantial magnetic
unit in or proximal to this zone is segmented by cross-cutting faults, possibly producing prospective
dilation zones favourable for gold deposition was also interpreted.
Infill soil sampling was planned to test and better define soil anomalism which may be related to gold-
bearing mineralised systems including at sites:
o
associated with the magnetic unit and cross cutting faults and
o
along strike to the southwest, in an area of gold-in-soil anomalies, where the UAV survey
was constrained.
(Refer ASX release 31/07/2024).
Figure 5. Windmills prospect. Gold in soil data shown over regional magnetics (TMI), LH panel;
Structure interpreted using additional drone survey data, centre panel; processed drone survey
magnetics (AGC) with areas precluded from survey shaded red, RH panel.
Reedy Lagoon Corporation Limited
Review of operations
30 June 2024
8
Shear Luck prospect
The Shear Luck prospect comprises a zone measuring at least 1,000 metres length along the
Yandina Shear Zone from which anomalous levels of gold has been identified in gold assay data from
soil sampling (refer to ASX release 3/07/2023).
Structures running parallel to the mapped location of the Yandina Shear Zone are interpreted from the
UAV data together with cross-cutting structures. Disrupted magnetic units and converging structures
have been identified for further work. 4 targets have been selected for soil sampling to recover
geochemical data to aid targeting gold-bearing mineralised systems for drill testing (refer ASX release
31/07/2024).
Figure 6. Shear Luck prospect. Gold in soil data shown over regional magnetics (TMI), LH panel;
Structure interpreted using additional drone survey data, centre panel; processed drone survey
magnetics (AGC) with areas precluded from survey shaded red, RH panel.
Reedy Lagoon Corporation Limited
Review of operations
30 June 2024
9
Zebra prospect
The Zebra prospect comprises a zone measuring at least 1,400 metres length where north to NNW
trends are evident in anomalous levels of gold in soil sampling (refer to ASX release 3/07/2023).
Interpretation of the UAV magnetic data identified prospective structures which may be associated
with the gold anomalism identified in the Company’s surface soil sample data.
Infill soil sampling to recover geochemical data to aid targeting gold-bearing mineralised systems
associated with the structures interpreted from the UAV magnetic data was planned at 4 target areas
comprising 3 zones of interpreted structural intersection and 1 interpreted zone of dilation (refer ASX
release 31/07/2024).
Figure 7. Zebra prospect. Gold in soil data shown over regional magnetics (TMI), LH panel; Structure
interpreted using additional drone survey data, centre panel; processed drone survey magnetics
(AGC) with area precluded from survey shaded red, RH panel.
Work planned.
Next steps under consideration include:
soil sampling to:
o
consolidate targets interpreted in the magnetic data coincident with existing gold in soil
anomalies to aid target rankings,
o
investigate new targets interpreted in the magnetic data,
o
extend systematic soil sampling to areas not yet sampled to recover geochemical data to
aid targeting gold-bearing mineralised systems for drill testing.
additional assay of existing soil samples (most have only been assayed for gold) to assist in
interpreting the undercover geology to aid targeting potential gold accumulation sites for drilling.
drilling to investigate gold targets.
Reedy Lagoon Corporation Limited
Review of operations
30 June 2024
10
Iron
Burracoppin Iron
Western Australia
RLC 100%
MINING, BIOMASSING and SMELTING
to produce
GREEN HIGH PURITY PIG IRON.
The Burracoppin Iron project plans to produce iron from the Burracoppin magnetite deposit by mining
and processing the ore into an iron concentrate for smelting into pig iron using carbon from biomass.
The plan incorporates HIsmelt technology which is well suited to processing the coarse grained high-
purity iron concentrate that the Burracoppin magnetite mineralisation can produce. The planned smelt
reactor produces High Purity Pig Iron (“HPPI”) at a rate of 1 million tonnes per annum (“mtpa”)
upgradable to 2 mtpa. A pig iron production rate of 1 mtpa would require about 1.6 mtpa iron concentrate
(3.2 mtpa for the higher rate). The requirement for up to 3.2 mtpa iron concentrate is well matched to
the likely scale of mining operations that may prove possible at Burracoppin and the available public
access infrastructure.
The steps required to achieve annual production of 1Mtpa Green High Purity Pig Iron include
establishing the following:
Mining - Burracoppin Magnetite
Biomassing for Carbon Cycling
Smelting - HIsmelt
Production - High Purity Pig Iron
The project aims to be a low-cost producer of green high purity pig iron.
The project’s critical attributes include the nature of the Burracoppin mineralisation, location of the
deposit and the relatively small-scale mining operation that would be required. These attributes lower
development risk. The relatively small-scale of mining (up to 3.2 Mtpa iron concentrate) is a positive
attribute if the mine product is processed into higher value products rather than sold as iron ore. Value-
add pathways are often critically dependant on the nature of the ore. Burracoppin has mineralization
that testing to date indicates is well suited to value-add by processing the mineralisation into high purity
pig iron by HIsmelt. Pig iron smelted using carbon from biomass can play a role in reducing greenhouse
gas (“GHG”) emissions by the steel industry. (Note: GHG emissions include carbon dioxide, methane
and nitrous oxide).
Burracoppin Magnetite Deposit
Western Australia
RLC 100%
E70/4941 (58 km2)
The Burracoppin magnetite deposit is located half-way
between Perth and Kalgoorlie near the town of
Burracoppin on the Great Eastern Highway, east of
Merredin. The Trans-Australian Railway passes over
the north-western extension of the deposit providing
heavy-haul goods service and access to ports (refer to
Figure 8).
Figure 8.
Reedy Lagoon Corporation Limited
Review of operations
30 June 2024
11
Metallurgical testwork conducted on core samples from 3 holes drilled into the Burracoppin magnetite
deposit has identified mineralisation well suited to HIsmelt. The testwork to date indicates the
Burracoppin mineralisation can produce an iron concentrate of at least 67% Fe and low impurities at a
grind size of 80% passing 150 micron (refer Figure 10 and ASX releases: 18/01/2013 and 17/11/2014).
Results from a study by CSIRO using advanced modelling of the magnetic field associated with the
deposit have been used by Reedy Lagoon to determine an Exploration Target of 240 to 300 million
tonnes at 20 to 25 Wt% iron at Burracoppin and are being used to assist planning the Company’s drilling
to establish the presence of sufficient magnetite to support the planned pig iron production (refer ASX
release 29/04/2022).
The Exploration Target stated above is a product of research which, whilst based on robust physics, is
conceptual in nature. There has been insufficient exploration to define a Mineral Resource and it is
uncertain if further exploration will result in the determination of a Mineral Resource.
Further drilling and metallurgical testwork is planned to establish Indicated Resources which, if
achieved, will enable financials for the mining and production of iron concentrate for the planned smelter
to be estimated.
Figure 9. CSIRO’s MagResource model of the Burracoppin magnetite deposit shown beneath land
surface imaged from GoogleEarth.
During the 2024 financial year reviews of potential development options were undertaken and
preparations for drilling were advanced.
Options to progress the project were reviewed and include initial sales of high-grade iron concentrates
in addition to pig iron. The use of higher-grade concentrates by iron and steel producers in order to
reduce GHG emissions from their operations may increase demand sufficiently to support strong pricing
for higher grade Fe concentrates. Higher-grade concentrates include +67% Fe and also Direct
Reduction Magnetite Concentrate (“DR Magnetite Concentrate”). DR Magnetite Concentrate typically
requires less than 2% total silica and alumina and greater than 70% Fe. The metallurgical work to date
indicates the Burracoppin mineralisation may produce such a concentrate at the 45 micron grind size
Reedy Lagoon Corporation Limited
Review of operations
30 June 2024
12
usually required for pelletising. DR Magnetite Concentrate would be marketed primarily to be processed
into pellets to make direct reduced iron for Electric Arc Furnaces.
Development of the project to produce green high purity pig iron using HiSmelt and +67% Fe
concentrate (at +100 micron) with no pelletising stage remains the preferred option (including because
of its potentially lower net GHG emissions), but the production and marketing of DR Magnetite
Concentrate as an intermediary stage in the project’s development could expand RLC’s market options
while allowing progression in the future to the production of green pig iron.
Work during the period included ongoing preparation for the planned drilling aimed at establishing a
mineral resource within the Burracoppin magnetite deposit. The drilling was originally planned in 2021
by H & S Consultants (H&SC) with an objective to determine the presence of 30Mt of iron concentrate
and comprised 11 holes for 3,740 metres (refer ASX release 12/02/2021). The 2021 dill plan was based
on information recovered by drilling conducted in 2012 under a prior joint venture with Cliffs Natural
Resources Inc (refer ASX release 25/10/2012).
The drill program was updated during 2024 to accommodate testing the geometry of the deposit as
modelled by the CSIRO MagResource method (refer Figure 9) to now comprise an initial 7 holes for
2,455 metres with subsequent holes selected based on results from the initial holes.
The deposit geometry interpreted by the MagResource method differs from that used previously to plan
the mineral resource drilling. If the Company’s planned drilling finds that the MagResource method has
succeeded in accurately modelling the deposit geometry the project would benefit from efficiencies
gained through better drill targeting.
The Company is seeking a joint venture partner for the project.
Figure 10. Iron grades (Wt% Fe), silica + alumina compositions (wt%) and grind sizes are shown in
two panels for a number of Australian deposits. Both panels show Wt% Fe of “ore” on the vertical
axis for a range of different sites. The panel on the right shows the grind size at which the Fe and
silica + alumina contents have been achieved. Low grade ores are ground in order to break down
particles to liberate the different constituents to facilitate separation and removal of the non‐ Fe
components and thereby increase the iron grade and decrease the silica and alumina content.
Reference to “Iron Ore” here includes a reference to “iron concentrate” in the case of ores that have
been processed to increase the Wt% Fe grade and decrease the silica and alumina content. The
Burracoppin (green circle) mineralisation process characteristics compare favourably with those of
the other deposits shown – high Fe and low Si + Al achieved at a coarse grind size.
Reedy Lagoon Corporation Limited
Review of operations
30 June 2024
13
Biomassing – Carbon Capture
Studies have identified the potential for locally grown biomass to produce all the carbon required for the
planned smelting of Burracoppin magnetite into pig iron (refer to ASX release 19/03/2021).
Biomass includes grass, wood, crops and certain "waste" products otherwise destined for landfill.
Biomass has been used as a fuel but we intend harvesting the carbon it contains by processing it into
biochar. The biochar will then be used to replace coal as the source of carbon required to smelt
magnetite into pig iron. The net operation will comprise smelting magnetite into metal which will release
carbon dioxide into the air and cropping biomass to extract carbon dioxide from the air.
The project will have greenhouse gas (including carbon dioxide) emissions additional to those from the
smelting operation, including from harvesting and processing biomass, mining and transport. These
additional emissions in total will be significantly less than those from the smelting operation and it is
anticipated that they could be mitigated by biomass/biochar production in excess of the smelter
requirements and / or by purchasing carbon credits.
The project will encompass carbon capture through agriculture and carbon release through industry: a
cycle - what is taken out is put back in.
It is intended that the biomass business will enable the project to produce pig iron with net zero carbon
dioxide emissions together with an alternative crop for wheat farmers in the Western Australian
Wheatbelt. It is expected that it may take 5 to 10 years to achieve the production rate of 0.6Mtpa to
0.8Mtpa biochar required for the planned production of 1Mtpa HPPI (refer ASX 19/03/2021). Alternative
options may include cropping biomass in other parts of Australia (higher growth rates) and by
purchasing biochar.
Smelting – Green High Purity Pig Iron
HIsmelt technology + Magnetite + Biochar = Green High Purity Pig Iron.
HIsmelt is a proven technology that was initially developed in Australia before being purchased by
Molong Petroleum Machinery Ltd and developed commercially in China. The first HIsmelt plant started
up in 2017 and the 2nd started up in 2019. There are 2 more HIsmelt plants scheduled for start-up in
China in 2024, and 6 more plants being engineered in China and SE Asia.
HIsmelt smelts iron ore into High Purity Pig Iron ("HPPI") with lower environmental emissions than the
conventional blast furnace technology and can produce "green" pig iron via using sustainably produced
biochar as the reductant instead of coal (refer to ASX releases 09/02/2021 and 19/03/2021).
HIsmelt is an innovative smelting process capable of using the coarse Burracoppin concentrate as direct
feed thus significantly reducing process costs at the mine site and adverse emissions at the smelter
site (as neither sintering or pelletising of the concentrate is required).
The HIsmelt smelt process produces a net excess of electricity, which will be "green" electricity when
using biochar as the reductant instead of coal. This green electricity may be able to be counted as
mitigating carbon emissions. The excess electricity (estimated at 20MW during smelting operations)
could potentially be used to produce green hydrogen for use in a first step in the smelt reaction in order
to further reduce carbon emissions (refer to ASX release 19/03/2021).
Reedy Lagoon Corporation Limited
Review of operations
30 June 2024
14
Lithium
Nevada Lithium Projects
LITHIUM
Nevada, USA
RLC 100%
Alkali Lake North
Clayton Valley
Activities conducted during the year included drill planning, geological studies that incorporated new
data reported by other companies advancing lithium-clay deposits in Nevada and seeking a joint venture
partner to fund the next phase of exploration.
However, following the end of the report period on 29 August the Company discontinued its lithium
projects located in Nevada, USA (refer ASX release 29/08/2024).
The market conditions for lithium products had been subdued during the latter half of the 2024 financial
year. These conditions continued following the end of the financial year resulting in major operators
reducing production and some operations being put on care and maintenance. Market analysis
suggests this situation will continue for some time.
Attempts to secure a partner for the lithium projects had not succeeded in establishing a joint venture
where the next phase of exploration would be funded by the incoming party.
Notwithstanding the significant potential for the Company’s placer and lode claims to contain lithium
that emerging technologies may be able to process for low-cost production of lithium chemical products
directors considered it commercially prudent to reduce the Company’s exposure in the lithium sector
and discontinued its lithium projects (refer ASX release 29/08/2024).
Figure 11. Location diagram. RLC’s Alkali Lake North and Clayton Valley lithium
projects are shown in blue (these projects were divested in August 2024.
Reedy Lagoon Corporation Limited
Review of operations
30 June 2024
15
Work in relation to discontinued Projects
Columbus Salt Marsh (Nevada)
The Columbus Salt Marsh project was divested at the end of August 2019. Areas disturbed by the
Company’s prior drilling activities were rehabilitated in 2018 with subsequent contouring and seeding
works undertaken in October 2019. The rehabilitation work was inspected by the Bureau of Land
Management (“BLM”) in May 2020 and the reclamation obligation was reduced from US$21,599 to
US$5,429. An inspection by the BLM during the June 2021 quarter found regrowth had been set-back
by drought conditions which persisted through the 2022 year.
During April 2024 the disturbed areas were lightly scarified (raked) and re-seeded (refer Figure 11). It
is considered likely that a repeat seeding will be needed if drought conditions continue throughout 2024.
The balance of the bond (US$5,429) will remain held by the BLM until the desired regrowth has been
established.
Corporate.
Reedy Lagoon issued 49,963,988 RLC shares at an issue price of $0.007 per share under an
Entitlement Offer to shareholders raising $349,748 on 29 August 2023.
Reedy Lagoon issued 2,857,143 shares at an issue price of $0.007 per share to a director (Adrian
Griffin) under the Scheme approved by shareholders at the annual general meeting held on 22
November 2023 relating to the payment of directors’ remuneration in respect of the 12 month period
from 1 January 2023 to 31 December 2023.
Geof Fethers
Managing Director
Figure 12. 2017 drilling operations shown above.
April 2024 raking and seeding activities over the area
disturbed are shown on the right.
Reedy Lagoon Corporation Limited
Review of operations
30 June 2024
16
Competent Person’s Statements:
The information in this report as it relates to exploration results and geology was compiled by Mr Geoffrey
Fethers who is a Member of the Australasian Institute of Mining and Metallurgy. Mr Fethers is a director of Reedy
Lagoon Corporation Limited and a Competent Person. Mr Fethers has sufficient experience which is relevant to
the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to
qualify as a Competent Person as defined in the 2012 Edition of the 'Australasian Code for Reporting of
Exploration Results, Mineral Resources and Ore Reserves'. Mr Fethers consents to the inclusion in the report of
the matters based on the information in the form and context in which it appears.
Where Exploration Results have been reported in earlier RLC ASX Releases referenced in this report, those releases
are available to view on https://www.reedylagoon.com.au/investors/asx‐announcements/. The Company
confirms that it is not aware of any new information or data that materially affects the information included in
those earlier releases. The company confirms that the form and context in which the Competent Person’s findings
are presented have not been materially modified from the original market announcement.
Reedy Lagoon Corporation Limited
Tenement Schedule
30 June 2024
17
Located in Australia
Tenement
Area
(km2)
Status
Date of grant
Minimum Annual
Expenditure
Commitment
$
Company
Interest
(direct or indirect)
E70/4941
Burracoppin (WA)
58
Current
19 April 2024
50,000
100% 1, & 2
E70/5467
Burracoppin (WA)
81
Current
22 Jan 2021
42,000
100% 1, & 2
E70/5544
Burracoppin (WA)
102
Current
23 Mar 2021
52,000
100% 1, & 2
Located in USA
The following tenements were relinquished following the end of the report period.
Tenements (all Placer Claims and Lode Claims located in Nevada) 3
Tenement
(Claim Numbers)
Project
Location
% Interest
WH‐1 to WH‐334
Alkali Lake North
Nevada, USA
100% 3
AC‐1 to AC‐157
Alkali Lake North
Nevada, USA
100% 3
CV‐1 to CV‐112
Clayton Valley
Nevada, USA
100% 3
Notes to the tenement schedule:
1. E70/4941, E70/5467 and E70/5544 are 100% owned by RLC through its wholly owned subsidiary,
Bullamine Magnetite Pty Ltd. The 3 tenements have each been granted for a 5 year term
commencing at date of grant.
2. The Statutory expenditure requirement for Australian tenements may be varied or reduced subject
to reduction of exploration area and/or relinquishment of non-prospective tenements. Expenditure
requirements commence at grant and apply for each 12 month period following the grant date and
non-compliance may lead to forfeiture of the tenement.
Note that tenements located in USA were relinquished after 30 June 2024
3. The Placer and Lode Claims in the lithium projects in Nevada were all owned 100% by RLC
through its wholly owned subsidiary, Sierra Lithium LLC.
Reedy Lagoon Corporation Limited
Directors' report
30 June 2024
Directors
Jonathan M. Hamer
Geoffrey H. Fethers
Adrian C. Griffin
Principal activities
Dividends
There were no dividends paid, recommended or declared during the current or previous financial year.
Review of operations
The loss for the consolidated entity after providing for income tax amounted to $667,896 (30 June 2023: $772,560 (Loss)).
Significant changes in the state of affairs
There were no significant changes in the state of affairs of the consolidated entity during the financial year.
Matters subsequent to the end of the financial year
Likely developments and expected results of operations
Environmental regulation
Name:
Jonathan M. Hamer
Title:
Chairman – Non-Executive
Age:
69
Qualifications:
BA, LLB.
Experience and expertise:
Other current directorships:
Nil
Former directorships (last 3 years):
Nil
Interests in shares:
24,254,226 fully paid ordinary shares
Interests in options:
900,000 options
18
Information on likely developments in the operations of the consolidated entity and the expected results of operations have not been included in
this report because the directors believe it would be likely to result in unreasonable prejudice to the consolidated entity.
The directors present their report, together with the financial statements, on the consolidated entity (referred to hereafter as the 'consolidated
entity') consisting of Reedy Lagoon Corporation Limited (referred to hereafter as the 'company' or 'parent entity') and the entities it controlled at the
end of, or during, the year ended 30 June 2024.
The following persons were directors of Reedy Lagoon Corporation Limited during the whole of the financial year and up to the date of this report,
unless otherwise stated:
During the financial year the principal continuing activities of the consolidated entity consisted of exploration for minerals in Australia and the
United States of America.
At the date of this report, there are no future developments of the Company which warrant disclosure.
The consolidated entity's operations are subject to environmental regulations in relation to its exploration activities under State legislation in
Australia and Federal legislation in USA.
The directors are not aware of any breaches of environmental regulations during the period covered by this report.
The directors have considered compliance with the National Greenhouse and Energy Reporting Act 2007 which requires entities to report annual
greenhouse gas emissions and energy use. For the period 1 July 2023 to 30 June 2024 the directors have assessed that there are no current
reporting requirements.
Information on directors
Jonathan Hamer is a former partner of King & Wood Mallesons where he practised in the areas of
corporate and finance law. Jonathan was appointed as a non-executive director of Reedy Lagoon on 9
May 2007 and has served on the board as chairman since.
Refer to the separate review of operations that comes before this directors' report.
On 17 September 2024, the company announced a non-renounceable pro rata entitlement offer to eligible holders of RLC shares on a 1 for 1
basis at 0.2 cents per new RLC share, together with a related offer under which those holders can apply for shares in addition to their entitlement.
If fully subscribed, the entitlement offer and the related offer (together, the “Offer”) will raise $1,239,000. The funds raised will be used for
exploration for gold at the Burracoppin Gold project in Western Australia and to provide working capital.
There are no other matters or circumstance has arisen since 30 June 2024 that has significantly affected, or may significantly affect the
consolidated entity's operations, the results of those operations, or the consolidated entity's state of affairs in future financial years.
On 26 July 2024, a director provided a further $50,000 to the Company, increasing the total subordinated loan to $400,000. This loan remains
interest-free and is repayable on demand only if RLC is able to make repayment and remain solvent.
In August 2024, the Company decided to reduce its exposure in the lithium sector and announced on 29 August that it would discontinue its lithium
projects located in Nevada, USA.
Reedy Lagoon Corporation Limited
Directors' report
30 June 2024
Name:
Geoffrey H. Fethers
Title:
Managing Director
Age:
67
Qualifications:
B.Sc.(Hons), M AusIMM
Experience and expertise:
Other current directorships:
Nil
Former directorships (last 3 years):
Nil
Interests in shares:
76,883,561 fully paid ordinary shares
Interests in options:
1,000,000 options
Name:
Adrian C. Griffin
Title:
Director - Non-Executive
Age:
71
Qualifications:
B.Sc.(Hons), M AusIMM
Experience and expertise:
Other current directorships:
Charger Metals NL (ASX:CHR) appointed 26 November 2021
Former directorships (last 3 years):
Battery Future Acquisition Corporation (NYSE: BFAC.U) 18 April 2021 to 16 January 2024
Parkway Corporate Ltd (ASX:PWN) 12 November 2010 to 19 September 2022
Lithium Australia Ltd (ASX:LIT) 31 January 2011 to 31 May 2022
Northern Minerals Ltd (ASX:NTU) 22 July 2006 to 24 November 2020
Special responsibilities:
Nil
Interests in shares:
39,049,434 fully paid ordinary shares
Interests in options:
300,000 options
‘Interests in shares and options’ quoted above are as at the date of this report.
Company secretary
Meetings of directors
Attended
Held
Jonathan M. Hamer
7
7
Geoffrey H. Fethers
7
7
Adrian C. Griffin
7
7
Held: represents the number of meetings held during the time the director held office.
19
Geof Fethers is a geologist with more than 30 years exploration experience. He was employed by De
Beers Australia Exploration Limited (formerly Stockdale Prospecting Limited) from 1980 to 1985. Geof
founded Reedy Lagoon on 24 September 1986 and has managed operations since inception.
Adrian Griffin has accumulated over 40 years’ experience in the resource sector. During that time he has
held directorships of many private and listed resource companies and overseen the operation of large,
integrated mining and processing facilities. He is currently a technical advisor to Lithium Australia
Limited, a diversified battery materials company. Adrian was a director of Reedy Lagoon from 9 May
2007 until resigning on 27 November 2009 to act as technical director of Ferrum Crescent, an iron-ore
developer in South Africa. He re-joined Reedy Lagoon as a director on 30 June 2014.
Adrian was also a founding director of Northern Minerals Ltd and Parkway Corporate Limited, Battery
Future Acquisition Corporation and recently appointed chairman of Charger Metals NL. He has been
involved in developing a number of lithium extraction technologies, high-performance cathode materials
for lithium ion batteries, and recycling of battery materials.
Other current directorships' quoted above are current directorships for listed entities only and excludes directorships of all other types of entities,
unless otherwise stated.
Former directorships (last 3 years) quoted above are directorships held in the last 3 years for listed entities only and excludes directorships of all
other types of entities, unless otherwise stated.
Geoffrey H. Fethers is the Company's secretary. Details of his qualifications and experience are disclosed in the information on directors section
above.
The number of meetings of the Company's Board of Directors ('the Board') held during the year ended 30 June 2024, and the number of meetings
attended by each director were:
Full Board
Reedy Lagoon Corporation Limited
Directors' report
30 June 2024
Remuneration report (audited)
The remuneration report is set out under the following main headings:
●
Principles used to determine the nature and amount of remuneration
●
Details of remuneration
●
Service agreements
●
Share-based compensation
●
Additional disclosures relating to key management personnel
Principles used to determine the nature and amount of remuneration
Use of remuneration consultants
The Company did not make use of remuneration consultants during the 2024 financial year
Voting and comments made at the Company's 22 November 2023 Annual General Meeting ('AGM')
Details of remuneration
Amounts of remuneration
The key management personnel of the consolidated entity consisted of the following directors of Reedy Lagoon Corporation Limited:
●
J Hamer
●
G Fethers
●
A Griffin
Post-
employment
benefits
Long-term
benefits
Share-based
payments
Cash salary
and fees
Annual
Leave
Super-
annuation
Long service
leave
Equity-settled
Total
2024
$
$
$
$
$
$
Non-Executive Directors:
J Hamer
36,036
-
3,964
-
1,064
41,064
A Griffin
40,000
-
-
-
355
40,355
Executive Directors:
G Fethers
45,760
8,068
27,500
1,249
1,773
84,350
121,796
8,068
31,464
1,249
3,192
165,769
20
This remuneration report outlines the Director and Executive remuneration arrangements of the Company in accordance with the Corporations Act
2001 and its Regulations.
This report outlines the remuneration arrangements in place for the Directors (both Executive and Non-Executive) and Executives of the
Company, who are considered Key Management Personnel (KMP).
This report is audited as the entity has transferred the disclosures from the financial statements.
For the purposes of this report the term ‘Senior Executive‘ encompasses the Managing Director, Executive Directors and Secretary of the
Company.
Currently, the Company does not have a separate remuneration committee. Because of the size of the Board and the operations of the Company,
the Directors are of the view that there is no need for a separate remuneration committee.
With their agreement, Directors have been paid 50% of their contracted rates for periods commencing 1January 2023 for G. Fethers and J. Hamer
and 1 January 2024 for A. Griffin. These actions were taken in order to reduce overheads, increase available funding for exploration and preserve
cash pending raising additional funds.
The amounts of Directors fees, wages and super not paid at their contracted rates during period commenced 1 January 2023 as a result of the
agreement of Directors referred to above are not owing and not payable unless and until the Board decides otherwise.
The Board as a whole reviews the remuneration packages and policies applicable to the Chairman, Senior Executives and Non-Executive
Directors on an annual basis. Remuneration levels are set to attract or retain, as appropriate, qualified and experienced Directors and Senior
Executives. From time to time and as required, the Board will seek independent professional advice on the appropriateness of remuneration
packages.
The current nature and amount of remuneration payable to Chairman, Executives and Non-Executive Directors is not dependent upon the
satisfaction of a performance condition. Instead part of the remuneration takes the form of options which will have value if the Company’s share
price increases.
At the 22 November 2023 AGM, 89.01% of the votes received supported the adoption of the remuneration report for the year ended 30 June
2024. The Company did not receive any specific feedback at the AGM regarding its remuneration practices.
Details of the remuneration of key management personnel of the consolidated entity are set out in the following tables and the sub-section:
Service Agreements below.
Short-term benefits
Reedy Lagoon Corporation Limited
Directors' report
30 June 2024
Details of remuneration (continued)
Post-
employment
benefits
Long-term
benefits
Share-based
payments
Cash
salary and
fees
Annual
Leave
Payment in
respect of
prior period *
Super-
annuation
Long service
leave
Equity-settled
Total
2023
$
$
$
$
$
$
$
Non-Executive Directors:
J Hamer
36,199
-
33,333
3,801
-
1,932
75,265
A Griffin
20,000
-
16,667
-
-
644
37,311
Executive Directors:
G Fethers
45,430
(3,696)
60,583
27,500
(2,422)
3,219
130,614
101,629
(3,696)
110,583
31,301
(2,422)
5,795
243,190
The proportion of remuneration linked to performance and the fixed proportion are as follows:
Name
2024
2023
2024
2023
2024
2023
Non-Executive Directors:
J Hamer
97%
97%
-
-
3%
3%
A Griffin
99%
98%
-
-
1%
2%
Executive Directors:
G Fethers
98%
98%
-
-
2%
2%
Service agreements
Name:
G Fethers
Title:
Managing Director
Agreement commenced:
1 May 2007
Details:
Name:
J Hamer
Title:
Chairman - Non-Executive
Agreement commenced:
1 May 2007
Details:
Name:
Mr Adrian Griffin
Title:
Director
Agreement commenced:
30 June 2014
Details:
21
Remuneration and other terms of employment for key management personnel are formalised in service agreements. Details of these agreements
are as follows:
Mr G Fethers is the Company’s Executive Managing Director under a contract of employment which commenced on 1
May 2007. Under the contract Mr Fethers is entitled to $132,000 per annum plus statutory superannuation and options
under the terms of the Directors Options Scheme. The contract does not have any fixed term and may be terminated
by the Company or Mr Fethers on reasonable notice. No payments or retirement benefits are payable on termination.
Mr J Hamer is employed as the Company’s Non-executive Chairman. His appointment as a Director commenced on 9
May 2007 with agreed director fees payable at an annual rate of $40,000 plus options under the terms of the Directors
Options Scheme. His annual rate was increased from $40,000 to $80,000 commencing 1 January 2018. There is no
fixed term and no set retirement benefits are payable on termination.
Short-term benefits
Fixed remuneration
At risk - STI
At risk - LTI
Mr A Griffin is employed as a Non-executive Director. His appointment as a Director commenced on 30 June 2014 with
agreed director fees payable at an annual rate of $40,000 plus options under the terms of the Directors Options
Scheme. There is no fixed term and no set retirement benefits are payable on termination
Key management personnel have no entitlement to termination payments, other than accrued leave balances, in the event of removal for
misconduct.
Reedy Lagoon Corporation Limited
Directors' report
30 June 2024
Share-based compensation
Issue of shares
Options
Fair value
Vesting date and
per option
Grant date
exercisable date
Expiry date
Exercise price
at grant date
$0.0069
$0.0035
Options granted carry no dividend or voting rights.
Number of
Number of
Number of
Number of
options
options
options
options
granted
granted
vested
vested
during the
during the
during the
during the
year
year
year
year
Name
2024
2023
2024
2023
J Hamer
300,000
300,000
300,000
300,000
G Fethers
500,000
500,000
500,000
500,000
A Griffin
100,000
100,000
100,000
100,000
Balance at
Received
Balance at
the start of
in lieu of
Held on
the end of
the year
remuneration
Additions
appointment
the year
Ordinary shares
G Fethers
57,662,667
-
19,220,894
-
76,883,561
J Hamer
19,968,511
-
4,285,715
-
24,254,226
A Griffin
36,192,291
-
2,857,143
-
39,049,434
113,823,469
-
26,363,752
-
140,187,221
Option holding
Balance at
Balance at
the start of
Expired /
the end of
the year
Granted
Exercised
Forfeited
the year
Options over ordinary shares
G Fethers
500,000
500,000
-
1,000,000
J Hamer
600,000
300,000
-
900,000
A Griffin
300,000
100,000
-
(100,000)
300,000
1,400,000
900,000
-
(100,000)
2,200,000
Shares under option
Unissued ordinary shares of Reedy Lagoon Corporation Limited under option at the date of this report are as follows:
Exercise
Number
Grant date
Expiry date
price
under option
$0.0546
400,000
$0.0152
900,000
$0.0069
900,000
2,200,000
22
The number of options over ordinary shares granted to and vested by directors and other key management personnel as part of compensation
during the year ended 30 June 2024 are set out below:
Additional disclosures relating to key management personnel
Shareholding
The number of shares in the Company held during the financial year by each director and other members of key management personnel of the
consolidated entity, including their personally related parties, is set out below:
There were no shares issued to directors and other key management personnel as part of compensation during the year ended 30 June 2024. No
shares were issued to any director in lieu of cash payable for fees/salary/super during the year ended 30 June 2024.
The terms and conditions of each grant of options over ordinary shares affecting remuneration of directors and other key management personnel
in this financial year or future reporting years are as follows:
18 December 2023
18 December 2023
31 December 2026
23 December 2021
31 December 2024
15 December 2022
31 December 2025
The number of options over ordinary shares in the Company held during the financial year by each director and other members of key
management personnel of the consolidated entity, including their personally related parties, is set out below:
18 December 2023
31 December 2026
No person entitled to exercise the options had or has any right by virtue of the option to participate in any share issue of the Company or of any
other body corporate.
Reedy Lagoon Corporation Limited
Directors' report
30 June 2024
Overall company performance
2024
2023
2022
2021
2020
Profit/(loss) attributable to owners of RLC ($'000)
(668)
(773)
(1,387)
(585)
(384)
Total dividends per share (cents)
-
-
-
-
-
Share price at year end (cents)
0.30
0.58
1.65
1.55
0.48
Total Shareholder Return (annualised)
-
-
-
-
-
This concludes the remuneration report, which has been audited.
Shares issued on the exercise of options
Indemnity and insurance of officers
Proceedings on behalf of the company
●
●
Officers of the Company who are former directors of Connect National Audit Pty Ltd
There are no officers of the Company who are former directors of Connect National Audit Pty Ltd.
Auditor's independence declaration
This report is made in accordance with a resolution of directors, pursuant to section 306(3)(a) of the Corporations Act 2001.
On behalf of the directors
___________________________
G.H. Fethers
Managing Director
30 September 2024
Melbourne
23
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 Company or of any related body corporate against a liability incurred as such an officer.
No person has applied for leave of 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 any part of those proceedings.
The directors are satisfied that the provision of non-audit services during the financial year, by the auditor (or by another person or firm on the
auditor's behalf), is compatible with the general standard of independence for auditors imposed by the Corporations Act 2001.
The directors are of the opinion that the services as disclosed in note 17 to the financial statements do not compromise the external auditor's
independence requirements of the Corporations Act 2001 for the following reasons:
all non-audit services have been reviewed and approved to ensure that they do not impact the integrity and objectivity of the auditor; and
The above variable remuneration has been awarded with consideration of the impact on shareholder wealth. The table below sets out the key
indicators of shareholder wealth over the last five years.
No ordinary shares of Reedy Lagoon Corporation Limited were issued on the exercise of options during the year ended 30 June 2024 and up to
the date of this report.
During the financial year, the Company paid a premium in respect of a contract insuring the directors of the Company (as named above) and all
executive officers of the Company and of any related body corporate against a liability incurred in such capacity of director, secretary or executive
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.
none of the services undermine the general principles relating to auditor independence as set out in APES 110 Code of Ethics for
Professional Accountants issued by the Accounting Professional and Ethical Standards Board, including reviewing or auditing the
auditor's own work, acting in a management or decision-making capacity for the Company, acting as advocate for the Company or jointly
sharing economic risks and rewards.
A copy of the auditor's independence declaration as required under section 307C of the Corporations Act 2001 is set out immediately after this
directors' report.
Connect National Audit Pty Ltd is an Authorised Audit Company
Head Office: Level 11, 333 Collins St, Melbourne VIC 3000
ABN 43 605 713 040
Gold Coast Office: Level 9, Wyndham Corporate Centre, 1 Corporate Court, BUNDALL,
QUEENSLAND, 4217
Sydney Office: Level 5, 20 Bond Street, Sydney NSW 2000
Liability limited by a scheme approved under Professional Standards Legislation
w: www.connectaudit.com.au
AUDITOR’S INDEPENDENCE DECLARATION
UNDER SECTION 307C OF THE CORPORATIONS ACT 2001
As lead auditor for the audit of Reedy Lagoon Corporation Limited for the year ended
30 June 2024, I declare that, to the best of my knowledge and belief, there have
been:
(a)
no contraventions of the auditor independence requirements of the
Corporations Act 2001 in relation to the audit; and
(b)
no contraventions of any applicable code of professional conduct in
relation to the audit.
This declaration is in respect of Reedy Lagoon Corporation Limited and controlled
entities.
ROBIN KING HENG LI CA RCA
DIRECTOR
Connect National Audit Pty Ltd
ASIC Authorised Audit Company No.: 521888
Melbourne, Victoria
Date: 30 September 2024
Reedy Lagoon Corporation Limited
Consolidated statements of profit or loss and other comprehensive income
For the year ended 30 June 2024
Consolidated
Note
2024
2023
$
$
Revenue
1,887
1,664
Expenses
Administration expenses
(180,868)
(144,100)
Employee benefits expense
(153,901)
(222,941)
Exploration expenditure
(297,476)
(357,662)
Share based payments
(3,192)
(5,795)
Exchange gain and losses
(10,133)
(4,989)
Other expenses
(24,214)
(38,738)
Loss before income tax expense
(667,896)
(772,560)
Income tax expense
5
-
-
(667,896)
(772,560)
Other comprehensive income for the year, net of tax
-
-
(667,896)
(772,560)
Cents
Cents
Basic earnings per share
25
(0.109)
(0.137)
Diluted earnings per share
25
(0.109)
(0.137)
Loss after income tax expense for the year attributable to the owners of Reedy
Lagoon Corporation Limited
Total comprehensive income for the year attributable to the owners of Reedy Lagoon Corporation
Limited
The above Consolidated Statement of profit or loss and other comprehensive income should be read in conjunction with the
accompanying notes
25
Reedy Lagoon Corporation Limited
Consolidated statements of financial position
As at 30 June 2024
Consolidated
Note
2024
2023
$
$
Assets
Current assets
Cash and cash equivalents
6
62,621
206,591
Trade and other receivables
7
5,817
4,012
Other
8
27,636
4,345
Total current assets
96,074
214,948
Non-current assets
Deposits & bonds
9
8,196
8,189
Total non-current assets
8,196
8,189
Total assets
104,270
223,137
Liabilities
Current liabilities
Trade and other payables
10
14,177
13,547
Provision for site restoration
10,000
10,000
Total current liabilities
24,177
23,547
Non-current liabilities
Employee benefits
11
208,938
183,390
Subordinated Loan
20
350,000
200,000
Total non-current liabilities
558,938
383,390
Total liabilities
583,115
406,937
Net liabilities
(478,845)
(183,800)
Equity
Issued capital
12
23,814,990
23,445,242
Reserves
13
(5,977)
(8,480)
Accumulated losses
(24,287,858)
(23,620,562)
Total equity
(478,845)
(183,800)
The above Consolidated Statement of financial position should be read in conjunction with the accompanying notes
26
Reedy Lagoon Corporation Limited
Consolidated statements of changes in equity
For the year ended 30 June 2024
Consolidated
Total
Issued
Exchange
Options
Accumulated
deficiency in
capital
Reserves
Reserves
losses
equity
$
$
$
$
$
Balance at 1 July 2022
23,334,659
(25,267)
6,891
(22,848,293)
467,990
Loss after income tax expense for the year
-
-
(772,560)
(772,560)
Other comprehensive income for the year,
net of tax
-
-
-
-
-
Total comprehensive income for the year
-
-
-
(772,560)
(772,560)
Transactions with owners in their capacity as owners:
110,583
-
-
-
110,583
Excercise of options
-
-
-
-
-
Share-based payments
-
-
5,795
-
5,795
Lapse of Options
-
-
(291)
291
-
Foreign currency translation
-
4,392
-
-
4,392
-
Balance at 30 June 2023
23,445,242
(20,875)
12,395
(23,620,562)
(183,800)
Consolidated
Total
Issued
Exchange
Options
Accumulated
deficiency in
capital
Reserves
Reserves
losses
equity
$
$
$
$
$
Balance at 1 July 2023
23,445,242
(20,875)
12,395
(23,620,562)
(183,800)
Loss after income tax expense for theyear
-
-
(667,896)
(667,896)
Other comprehensive income for the year,
net of tax
-
-
-
-
-
Total comprehensive income for the year
-
-
-
(667,896)
(667,896)
Transactions with owners in their capacity as owners:
369,748
-
-
-
369,748
Excercise of options
-
-
-
-
-
Share-based payments
-
-
3,192
-
3,192
Lapse of Options
-
-
(600)
600
-
Foreign currency translation
-
(89)
-
-
(89)
Balance at 30 June 2024
23,814,990
(20,964)
14,987
(24,287,858)
(478,845)
The above Consolidated Statement of changes in equity should be read in conjunction with the accompanying notes
27
Contributions of equity, net of transaction costs (note 12)
Contributions of equity, net of transaction costs (note 12)
Reedy Lagoon Corporation Limited
Consolidated statements of cash flows
For the year ended 30 June 2024
Consolidated
Note
2024
2023
$
$
Cash flows from operating activities
Operating receipts
1,887
1,664
Payments to suppliers and employees
(335,624)
(430,820)
Payments for exploration activities
(319,850)
(225,920)
Interest received
-
-
Net cash used in operating activities
24
(653,586)
(655,075)
Cash flows from investing activities
Proceeds from deposits and bonds refunds
9
-
-
Net cash from investing activities
-
-
Cash flows from financing activities
Proceeds from issue of shares, net of issue costs
12
369,748
110,583
Proceeds from exercise of share options
-
-
Proceeds from Loans
150,000
200,000
Net cash from financing activities
519,748
310,583
Net (decrease) / increase in cash and cash equivalents
(133,839)
(344,492)
Impact of exchange rates on foreign cash balances
(10,133)
(905)
Cash and cash equivalents at the beginning of the financial year
206,591
551,987
Cash and cash equivalents at the end of the financial year
6
62,621
206,591
The above Consolidated Statement of cash flows should be read in conjunction with the accompanying notes
28
Reedy Lagoon Corporation Limited
Notes to the financial statements
30 June 2024
Note 1. General information
Level 44, 600 Bourke Street
Melbourne
Victoria 3000
Note 2. Material accounting policies
New or amended Accounting Standards and Interpretations adopted
Any new or amended Accounting Standards or Interpretations that are not yet mandatory have not been early adopted.
Going concern
This financial report has been prepared on a going concern basis.
Comparatives
Basis of preparation
Critical accounting estimates
Parent entity information
29
The financial statements cover Reedy Lagoon Corporation Limited as a consolidated entity consisting of Reedy Lagoon Corporation Limited and
the entities it controlled at the end of, or during, the year. The financial statements are presented in Australian dollars, which is Reedy Lagoon
Corporation Limited's functional and presentation currency.
Reedy Lagoon Corporation Limited is a listed public company limited by shares, incorporated and domiciled in Australia. Its registered office and
principal place of business is:
A description of the nature of the consolidated entity's operations and its principal activities are included in the directors' report, which is not part of
the financial statements.
The financial statements were authorised for issue, in accordance with a resolution of directors, on 30 September 2024. The directors have the
power to amend and reissue the financial statements.
The material accounting policies adopted are consistent with those of the previous financial year and corresponding interim reporting period,
unless otherwise stated.
The Directors have assessed the Company’s current financial position, and its proposed capital and other funds raising activities, and are of the
view that the application of the going concern basis of accounting is appropriate for this financial report.
The comparative figures have been classified in certain circumstances to provide a more meaningful representation of the financial statements.
These general purpose financial statements have been prepared in accordance with Australian Accounting Standards and Interpretations issued
by the Australian Accounting Standards Board ('AASB') and the Corporations Act 2001, as appropriate for for-profit oriented entities. These
financial statements also comply with International Financial Reporting Standards as issued by the International Accounting Standards Board
('IASB').
The preparation of the financial statements requires the use of certain critical accounting estimates. It also requires management to exercise its
judgement in the process of applying the consolidated entity's accounting policies. The areas involving a higher degree of judgement or
complexity, or areas where assumptions and estimates are significant to the financial statements, are disclosed in note 3.
In accordance with the Corporations Act 2001, these financial statements present the results of the consolidated entity only. Supplementary
information about the parent entity is disclosed in note 21.
The consolidated entity has adopted all of the new or amended Accounting Standards and Interpretations issued by the Australian Accounting
Standards Board ('AASB') that are mandatory for the current reporting period.
Further funding to enable the Company to continue its exploration activities is anticipated through the issuance of securities. The Company
announced an Entitlement Offer in September 2024 to raise funds to undertake gold exploration at its Burracoppin Gold project and for working
capital.
The next stage of work planned at the Burracoppin Iron project is drilling to establish a mineral resource. To fund this work, the Company is
seeking a joint venture partner to earn equity in the project by conducting this next stage.
The consolidated entity incurred a loss of $667,896 (2023: $772,560), had net liabilities of $478,845 (2023: 183,800), and net operating cash
outflows of $653,586 (2023: $655,075). These conditions indicate a material uncertainty related to the consolidated entity’s ability to continue as a
going concern.
30
Reedy Lagoon Corporation Limited
Notes to the financial statements
30 June 2024
Note 2. Material accounting policies (continued)
Principles of consolidation
The consolidated financial statements incorporate the assets and liabilities of all subsidiaries of Reedy Lagoon Corporation Limited ('company' or
'parent entity') as at 30 June 2024 and the results of all subsidiaries for the year then ended. Reedy Lagoon Corporation Limited and its
subsidiaries together are referred to in these financial statements as the 'consolidated entity'.
Subsidiaries are all those entities over which the consolidated entity has control. The consolidated entity controls an entity when the consolidated
entity is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its
power to direct the activities of the entity. Subsidiaries are fully consolidated from the date on which control is transferred to the consolidated
entity. They are de-consolidated from the date that control ceases.
Intercompany transactions, balances and unrealised gains on transactions between entities in the consolidated entity are eliminated. Unrealised
losses are also eliminated unless the transaction provides evidence of the impairment of the asset transferred. Accounting policies of subsidiaries
have been changed where necessary to ensure consistency with the policies adopted by the consolidated entity.
The acquisition of subsidiaries is accounted for using the acquisition method of accounting. A change in ownership interest, without the loss of
control, is accounted for as an equity transaction, where the difference between the consideration transferred and the book value of the share of
the non-controlling interest acquired is recognised directly in equity attributable to the parent.
Where the consolidated entity loses control over a subsidiary, it derecognises the assets including goodwill, liabilities and non-controlling interest
in the subsidiary together with any cumulative translation differences recognised in equity. The consolidated entity recognises the fair value of the
consideration received and the fair value of any investment retained together with any gain or loss in profit or loss.
Operating segments
Operating segments are presented using the 'management approach', where the information presented is on the same basis as the internal
reports provided to the Chief Operating Decision Makers ('CODM'). The CODM is responsible for the allocation of resources to operating
segments and assessing their performance.
Foreign currency translation
The financial statements are presented in Australian dollars, which is Reedy Lagoon Corporation Limited's functional and presentation currency.
Foreign currency transactions
Foreign currency transactions are translated into Australian dollars using the exchange rates prevailing at the dates of the transactions. Foreign
exchange gains and losses resulting from the settlement of such transactions and from the translation at financial year-end exchange rates of
monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss.
Foreign operations
The assets and liabilities of foreign operations are translated into Australian dollars using the exchange rates at the reporting date. The revenues
and expenses of foreign operations are translated into Australian dollars using the average exchange rates, which approximate the rates at the
dates of the transactions, for the period. All resulting foreign exchange differences are recognised in other comprehensive income through the
foreign currency reserve in equity.
The foreign currency reserve is recognised in profit or loss when the foreign operation or net investment is disposed of.
Exploration, Evaluation and Development Expenditure
Expenditure incurred on the acquisition of exploration properties and exploration, evaluation and development costs, including acquisition of
Nevada Lithium Pty Ltd are written off as incurred where the activities in the areas of interest have not yet reached a stage that permits
reasonable assessment of the existence of economically recoverable reserves. At the date of this report insufficient data has been
recovered to permit an assessment of the existence of economically recoverable reserves at any of the Company’s projects. The Company has
accordingly expensed all its expenditure relating to exploration during the report period. Once it is determined that the costs can be recouped
through sale or successful development and exploitation of the area of interest then the on-going costs are accumulated and carried forward for
each area of interest.
Amortisation is not charged on costs carried forward in respect of areas of interest in the development phase until production commences. When
production commences, carried forward exploration, evaluation and development costs are amortised over the life of the area according to the rate
of depletion of the economically recoverable reserves.
Accumulated costs in relation to an abandoned area are written off in full against profit in the year in which the decision to abandon the area is
made. Each area of interest is also reviewed annually and accumulated costs written off to the extent that they will not be recoverable in the
future.
Restoration costs are provided for at the time of the activities that give rise to the need for restoration. If this occurs prior to commencement of
production, the costs are included in deferred exploration and development expenditure. If it occurs after commencement of production, restoration
costs are provided for and charged to the Consolidated Statement of financial performance as an expense.
New Accounting Standards and Interpretations not yet mandatory or early adopted
Australian Accounting Standards and Interpretations that have recently been issued or amended but are not yet mandatory, have not been early
adopted by the consolidated entity for the annual reporting period ended 30 June 2024. The consolidated entity has not yet assessed the impact of
these new or amended Accounting Standards and Interpretations.
Reedy Lagoon Corporation Limited
Notes to the financial statements
30 June 2024
Note 3. Critical accounting judgements, estimates and assumptions
Share-based payment transactions
Recovery of deferred tax assets
Employee benefits provision
Exploration expenditures
Provision for restoration
Note 4. Operating segments
Identification of reportable operating segments
Note 5. Income tax expense
Consolidated
2024
2023
$
$
Numerical reconciliation of income tax expense and tax at the statutory rate
Loss before income tax expense
(667,896)
(772,560)
Tax at the statutory tax rate of 25% (2022: 25%)
(166,974)
(193,140)
Tax effect amounts which are not deductible/(taxable) in calculating taxable income:
Capital allowances share issue costs
(3,444)
(3,444)
Non deductible equity settled benefits expense
798
1,449
Other non-deductible (deductible) expenses
621
8,019
Non deductible overseas exploration expenditure
35,604
58,063
(133,395)
(129,053)
Current year tax losses not recognised
133,395
129,053
Income tax expense
-
-
Tax losses not recognised
Unused tax losses for which no deferred tax asset has been recognised
10,855,165
10,321,586
Potential tax benefit @ 25%
2,713,791
2,580,397
31
Significant estimates and assumptions are made in determining this provision as there are a number of factors that will affect the ultimate liability.
These factors include estimates of the extent and costs of rehabilitation activities, technological changes, regulatory changes, cost
increases/decreases and changes in discount rates. These uncertainties may result in future actual expenditure differing from the amounts
currently provided. The provision at balance date represents management’s best estimate of the present value of the future restoration costs
required.
The Company is organised into one operating segments: mineral exploration. This operating segment is based on the internal reports that are
reviewed and used by the Board of Directors (who are identified as the Chief Operating Decision Makers ('CODM')) in assessing performance and
in determining the allocation of resources.
The above potential tax benefit for tax losses has not been recognised in the Consolidated Statement of financial position. These tax losses can
only be utilised in the future if the continuity of ownership test is passed, or failing that, the same business test is passed.
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the reported
amounts in the financial statements. Management continually evaluates its judgements and estimates in relation to assets, liabilities, contingent
liabilities, revenue and expenses. Management bases its judgements, estimates and assumptions on historical experience and on other various
factors, including expectations of future events, management believes to be reasonable under the circumstances. The resulting accounting
judgements and estimates will seldom equal the related actual results. The judgements, estimates and assumptions that have a significant risk of
causing a material adjustment to the carrying amounts of assets and liabilities (refer to the respective notes) within the next financial year are
discussed below.
Equity-settled share-based payments are measured at fair value of the equity instrument at the grant date. Fair value is measured by the use of
either a Binomial or Black-Scholes model taking into account the terms and conditions upon which the instruments were granted. The expected
life used in the model has been adjusted, based on management’s best estimate, for the effects of non-transferability, exercise restrictions, and
behavioural considerations.
Deferred tax assets are recognised for deductible temporary differences only if the consolidated entity considers it is probable that future taxable
amounts will be available to utilise those temporary differences and losses. Management has determined not to recognise the deferred tax asset,
given that the group has experienced losses, on a historical basis.
As discussed in note 11, the liability for employee benefits expected to be settled more than 12 months from the reporting date are recognised and
measured at the present value of the estimated future cash flows to be made in respect of all employees at the reporting date. In determining the
present value of the liability, estimates of attrition rates and pay increases through promotion and inflation have been taken into account.
The consolidated entity expenses expenditures relating to exploration where the activities in the areas of interest have not yet reached a stage
that permits reasonable assessment of the existence of economically recoverable reserves. At the date of this report insufficient data has been
recovered to permit an assessment of the existence of economically recoverable reserves at any of the Company’s projects. The Company has
accordingly expensed all its expenditure relating to exploration during the report period.
a) The Company derives future assessable income of a nature and amount sufficient to enable the benefit to be realised;
b) The Company continues to comply with the conditions for deductibility imposed by the law; and
c) No changes in tax legislation adversely affect the Company in realising the benefit.
Income Tax Rate
Note 6. Current assets - cash and cash equivalents
2024
2023
$
$
Cash at bank
62,621
206,591
Note 7. Current assets - trade and other receivables
2024
2023
$
$
GST receivable
5,817
4,012
5,817
4,012
Note 8. Current assets - other
2024
2023
$
$
Prepayments
27,636
4,345
Note 9. Non-current assets - other
2024
2023
$
$
Security deposits
8,196
8,189
Note 10. Current liabilities - trade and other payables
2024
2023
$
$
Other payables and accruals
14,177
13,547
Refer to note 15 for further information on financial instruments.
Note 11. Non-Current liabilities - employee benefits
Consolidated
2024
2023
$
$
Annual leave
166,683
143,791
Long Service Leave
42,255
39,599
208,938
183,390
32
The director to whom the provision relates has provided a written undertaking that he will not apply to use any of his leave entitlements over the
next 12 months and has provided the company an unconditional right to defer such benefit for a period in excess of 12 months from the balance
date 30 June 2024.
Reedy Lagoon Corporation Limited
Notes to the financial statements
30 June 2024
Note 5. Income tax expense (continued)
The above potential tax benefit, which excludes tax losses, for deductible temporary differences has not been recognised in the
Consolidated Statement of financial position as the recovery of this benefit is uncertain.
The potential future income tax benefit will only be obtained if:
The tax rate used in the above reconciliation is the corporate tax rate of 25% payable by base rate entities for the 2022 and future income years.
The base rate entity tax rate applies where the aggregated turnover of the entity is less than $50 million and less than 80% of assessable income
is base rate entity passive income. The rate used is the one that is expected to apply when the deferred tax assets of the entity are realised and
the deferred tax liabilities of the entity are settled.
Consolidated
Consolidated
Consolidated
Consolidated
The security deposits are monies held in respect of rehabilitation works required on the Company’s tenements located in the USA.
Consolidated
Reedy Lagoon Corporation Limited
Notes to the financial statements
30 June 2024
Note 12. Equity - issued capital
Consolidated
2024
2023
2024
2023
shares
shares
$
$
Ordinary shares - fully paid
619,540,732
566,719,601
23,814,990
23,445,242
Movements in ordinary share capital
Details
Date
Shares
Issue price
$
Balance
557,426,912
23,334,659
Director subscriptions
9,292,689
$0.0119
110,583
Balance
566,719,601
23,445,242
Entitlement Offer
49,963,988
$0.0070
349,748
Director subscriptions
2,857,143
$0.0070
20,000
Balance
619,540,732
23,814,990
Ordinary shares
Share buy-back
There is no current on-market share buy-back.
Capital risk management
The Company continuously reviews the capital structure to ensure:-
• sufficient funds are available to implement its exploration expenditure programs in accordance with forecasted needs; and
• sufficient funds for the other operational needs of the Company is maintained.
The capital risk management policy remains unchanged from the 30 June 2023 annual report.
Note 13. Equity - reserves
Consolidated
2024
2023
$
$
Foreign currency reserve
(20,964)
(20,875)
Share-based payments reserve
14,987
12,395
(5,977)
(8,480)
Foreign currency reserve
Share-based payments reserve
33
30 June 2022
15 December 2022
30 June 2023
29 August 2023
31 December 2023
30 June 2024
Ordinary shares entitle the holder to participate in dividends and the proceeds on the winding up of the Company in proportion to the number of
and amounts paid on the shares held. The fully paid ordinary shares have no par value and the Company does not have a limited amount of
authorised capital.
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.
RLC’s objectives when managing capital are to safeguard the Company’s ability to continue as a going concern and exploit the mineral assets
under its control in order to provide future returns for shareholders and benefits for other stakeholders.
Capital is regarded as total equity, as recognised in the statement of financial position, plus net debt. Net debt is calculated as total borrowings
less cash and cash equivalents.
The reserve is used to recognise exchange differences arising from the translation of the financial statements of foreign operations to Australian
dollars. It is also used to recognise gains and losses on hedges of the net investments in foreign operations.
The reserve is used to recognise the value of equity benefits provided to employees and directors as part of their remuneration, and other parties
as part of their compensation for services.
Reedy Lagoon Corporation Limited
Notes to the financial statements
30 June 2024
Note 13. Equity - reserves (continued)
Movements in reserves
Movements in each class of reserve during the current and previous financial year are set out below:
Share based
Foreign
payments
currency
Total
Consolidated
$
$
$
Balance at 1 July 2022
6,891
(25,267)
(18,376)
Foreign currency translation
-
4,392
4,392
Lapse of options
(291)
(291)
Option excercise
-
-
Share based payments
5,795
-
5,795
Balance at 30 June 2023
12,395
(20,875)
(8,480)
Foreign currency translation
-
(89)
(89)
Lapse of options
(600)
-
(600)
Option excercise
-
-
-
Share based payment
3,192
-
3,192
Balance at 30 June 2024
14,987
(20,964)
(5,977)
Note 14. Equity - dividends
There were no dividends paid, recommended or declared during the current or previous financial year.
Note 15. Financial instruments
Financial risk management objectives
Market risk
Foreign currency risk
Price risk
The consolidated entity is not exposed to any significant price risk.
Interest rate risk
The consolidated entity is not exposed to significant interest rate risk.
Credit risk
34
Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the consolidated entity. The
consolidated entity has a strict code of credit, including obtaining agency credit information, confirming references and setting appropriate credit
limits. The maximum exposure to credit risk at the reporting date to recognised financial assets is the carrying amount, net of any provisions for
impairment of those assets, as disclosed in the statement of financial position and notes to the financial statements. The consolidated entity does
not hold any collateral.
The consolidated entity has adopted a lifetime expected loss allowance in estimating expected credit losses to trade receivables through the use
of a provisions matrix using fixed rates of credit loss provisioning. These provisions are considered representative across all customers of the
consolidated entity based on recent sales experience, historical collection rates and forward-looking information that is available.
The consolidated entity trade and other receivables consist of GST receivable and interest receivable. For this reason the consolidated entity is
not exposed to significant credit risk.
The consolidated entity's activities expose it to a variety of financial risks: market risk (including foreign currency risk, price risk and interest rate
risk), credit risk and liquidity risk. The consolidated entity's overall risk management program focuses on the unpredictability of financial markets
and seeks to minimise potential adverse effects on the financial performance of the consolidated entity. The consolidated entity uses different
methods to measure different types of risk to which it is exposed. These methods include sensitivity analysis in the case of interest rate, foreign
exchange and other price risks, ageing analysis for credit risk.
Risk management is carried out by the managing director under policies approved by the Board of Directors ('the Board'). These policies include
identification and analysis of the risk exposure of the consolidated entity and appropriate procedures, controls and risk limits. The managing
director identifies, evaluates and hedges financial risks within the consolidated entity's operating units. The managing director reports to the Board
on a regular basis.
The consolidated entity undertakes certain transactions denominated in foreign currency and is exposed to foreign currency risk through foreign
exchange rate fluctuations.
Foreign exchange risk arises from future commercial transactions and recognised financial assets and financial liabilities denominated in a
currency that is not the entity's functional currency. All investment in US entity are equity settled, there are minimal financial instruments with
foreign exchange exposure.
Reedy Lagoon Corporation Limited
Notes to the financial statements
30 June 2024
Note 15. Financial instruments (continued)
Liquidity risk
Remaining contractual maturities
Weighted
average
interest rate
1 year or
less
Between 1 and
2 years
Between 2 and
5 years
Over 5 years
Remaining
contractual
maturities
Consolidated - 2024
%
$
$
$
$
$
Non-derivatives
Non-interest bearing
Trade other payables
-
14,177
-
-
-
14,177
Subordinated Loan
-
-
-
350,000
-
350,000
Total non-derivatives
14,177
-
350,000
-
364,177
Weighted
1 year or
Between 1 and
Between 2 and
Over 5 years
Remaining
Consolidated - 2023
%
$
$
$
$
$
Non-derivatives
Non-interest bearing
Trade other payables
-
13,547
-
-
-
13,547
Subordinated Loan
-
200,000
200,000
Total non-derivatives
13,547
-
200,000
-
213,547
The cash flows in the maturity analysis above are not expected to occur significantly earlier than contractually disclosed above.
Fair value of financial instruments
Unless otherwise stated, the carrying amounts of financial instruments reflect their fair value.
Note 16. Key management personnel disclosures
Compensation
2024
2023
$
$
Short-term employee benefits
129,864
208,516
Post-employment benefits
31,464
31,301
Long-term benefits
1,249
(2,422)
Share-based payments
3,192
5,795
165,769
243,190
35
Generally, trade receivables are written off when there is no reasonable expectation of recovery. Indicators of this include the failure of a debtor to
engage in a repayment plan, no active enforcement activity and a failure to make contractual payments for a period greater than 1 year.
Vigilant liquidity risk management requires the consolidated entity to maintain sufficient liquid assets (mainly cash and cash equivalents) to pay
debts as and when they become due and payable.
The consolidated entity manages liquidity risk by maintaining adequate cash reserves and available borrowing facilities by continuously monitoring
actual and forecast cash flows and matching the maturity profiles of financial assets and liabilities.
The following tables detail the consolidated entity's remaining contractual maturity for its financial instrument liabilities. The tables have been
drawn up based on the undiscounted cash flows of financial liabilities based on the earliest date on which the financial liabilities are required to be
paid. The tables include both interest and principal cash flows disclosed as remaining contractual maturities and therefore these totals may differ
from their carrying amount in the statement of financial position.
The aggregate compensation made to directors and other members of key management personnel of the consolidated entity is set out below:
Consolidated
Reedy Lagoon Corporation Limited
Notes to the financial statements
30 June 2024
Note 17. Remuneration of auditors
2024
2023
$
$
Audit services - Connect National Audit Pty Ltd
Audit or review of the financial statements
16,000
16,000
Other services - Connect National Audit Pty Ltd
Tax and compliance services
-
-
16,000
16,000
Note 18. Contingent liabilities
Note 19. Exploration expenditure commitments
Projects located in North America
Projects located in Australia
No provision has been made in the accounts for exploration commitments.
Note 20. Related party transactions
Parent entity
Reedy Lagoon Corporation Limited is the parent entity.
Subsidiaries
Interests in subsidiaries are set out in note 22.
Key management personnel
Disclosures relating to key management personnel are set out in note 16 and the remuneration report included in the directors' report.
Transactions with related parties
There were no transactions with related parties during the current and previous financial year.
Receivable from and payable to related parties
There were no trade receivables from or trade payables to related parties at the current and previous reporting date.
Loans to/from related parties
2024
2023
$
$
Subordinated Loan
350,000
200,000
36
During the financial year the following fees were paid or payable for services provided by Connect National Audit Pty Ltd, the auditor of the
Company:
Consolidated
The Company is not aware of any contingent liabilities other than outstanding rehabilitation of a drill site used by the Company during drilling at
its Columbus Salt Marsh project (drill hole CBD-01 ). An amount of $10,000 has been allocated for this work which is expected to be
completed in the normal course of business.
The consolidated entity held 446 Placer Claims and 157 Lode Claims at 30 June 2024 in connection with its Alkali Lake North and Clayton Valley
Lithium projects located in Nevada, USA. Annual Land Fees are payable to the Bureau of Land Management (“BLM”) and Esmeralda County for
all claims with payment required prior to 1 September each year. Subsequent to the end of the report period and prior to 1 September 2024 the
Company decided to discontinue its Alkali Lake North and Clayton Valley Lithium projects. At the date of this report there are no Land Fees
payable in respect of the 446 Placer Claims and 157 Lode Claims held at 30 June 2024 and no exploration expenditure in Nevada, USA is
planned.
The consolidated entity held three tenements: E70/4941, E70/5467 and E70/5544, located in Western Australia at the date of this report. Ongoing
annual exploration expenditure is required to maintain title to the tenements. Tenement expenditure will be determined by the Company and is
dependent upon exploration results and available cash resources. The statutory expenditure requirement is subject to negotiation with the relevant
state department, and expenditure commitments may be reduced subject to reduction of exploration area and/or relinquishment of non-prospective
tenements. In Western Australia, unless the Minister (Western Australian Department of Energy, Mines, Industry Regulation & Safety) determines
otherwise, if the minimum annual expenditure on a tenement is not satisfied the licence may be forfeited. The combined minimum annual
expenditures for the Australian tenements is $144,500.
Consolidated
Reedy Lagoon Corporation Limited
Notes to the financial statements
30 June 2024
Note 20. Related party transactions (continued)
Note 21. Parent entity information
Set out below is the supplementary information about the parent entity.
Statement of profit or loss and other comprehensive income
2024
2023
$
$
Loss after income tax
(509,386)
(560,202)
Total comprehensive loss
(509,386)
(560,202)
2024
2023
$
$
Total current assets
62,399
200,578
Total assets
3,805,942
3,766,210
less: Provision for Impairment
(1,374,204.59)
-
Total assets after Impairment
2,431,737.41
3,766,209.75
Total current liabilities
14,177
196,937
Total liabilities
573,115
196,937
Equity
Issued capital
23,814,990
23,445,242
Share-based payments reserve
14,987
12,395
Accumulated losses
(21,971,354)
(20,088,364)
Total equity
1,858,623
3,369,273
Provision for Impairment
Going Concern
Guarantees entered into by the parent entity in relation to the debts of its subsidiaries
The parent entity had no guarantees in relation to the debts of its subsidiaries as at 30 June 2024 and 30 June 2023.
Contingent liabilities
The parent entity had no contingent liabilities as at 30 June 2024 and 30 June 2023.
Capital commitments - Property, plant and equipment
The parent entity had no capital commitments for property, plant and equipment as at 30 June 2024 and 30 June 2023.
Significant accounting policies
●
Investments in subsidiaries are accounted for at cost, less any impairment, in the parent entity.
37
Notwithstanding the above, the parent entity remains a going concern due to the factors disclosed in Note 2 – Going Concern. These factors
include the parent entity's ability to secure necessary funding, continued shareholder support, and positive operational prospects.
The accounting policies of the parent entity are consistent with those of the consolidated entity, as disclosed in note 2, except for the following:
During the previous financial year a director provided $200,000 to RLC by way of interest-free subordinated loans repayable on demand but only if
RLC is able to make repayment and remain solvent (that is, the loan is effectively subordinated to all other creditors). The Director has agreed that
he will not at any time prior to September 2026 call for repayment of any part of the $200,000 lent by him to the Company if that repayment would
jeopardise the ability of the Company to continue to trade or meet its other liabilities as they fall due.
During the report year a director provided a further $150,000 to RLC, increasing the total subordinated loan to $350,000. This loan remains
interest-free and is repayable on demand only if RLC is able to make repayment and remain solvent. The Director has agreed that he will not at
any time prior to September 2026 call for repayment of any part of the $350,000 lent by him to the Company if that repayment would jeopardize
the ability of the Company to continue to trade or meet its other liabilities as they fall due.
Parent
Statement of financial position
Parent
As at 30 June 2024, the parent entity’s total assets have been assessed for impairment, given that the net assets of the parent entity exceeded its
market capitalisation at year-end, which served as an impairment indicator. To align the net assets with the market capitalisation, a provision for
impairment of approximately $1.37 million has been recognised. This adjustment ensures that the net assets of the parent entity are equal to or
lower than its market capitalisation as at the reporting date.
Reedy Lagoon Corporation Limited
Notes to the financial statements
30 June 2024
Note 22. Interests in subsidiaries
Principal place of business /
2024
2023
Name
Country of incorporation
%
%
Bullamine Magnetite Pty Ltd
Australia
100.00%
100.00%
Nevada Lithium Pty Ltd
Australia
100.00%
100.00%
Sierra Lithium LLC
USA
100.00%
100.00%
Note 23. Events after the reporting period
Note 24. Reconciliation of loss after income tax to net cash used in operating activities
2024
2023
$
$
Loss after income tax expense for the year
(667,896)
(772,560)
Adjustments for:
Realised FX (gains)/losses
9,181
5,297
Share-based payments
3,192
5,795
Change in operating assets and liabilities:
Decrease/(increase) in trade and other receivables
(25,103)
142,202
Decrease/(increase) in other operating assets
-
-
Decrease in trade and other payables
1,492
(36,794)
Increase in employee benefits
25,548
985
Decrease in other provisions
-
-
Net cash used in operating activities
(653,586)
(655,075)
Note 25. Earnings per share
2024
2023
$
$
Loss after income tax attributable to the owners of Reedy Lagoon Corporation Limited
(667,896)
(772,560)
Number
Number
Weighted average number of ordinary shares used in calculating basic earnings per share
610,133,637
562,442,177
Weighted average number of ordinary shares used in calculating diluted earnings per share
610,133,637
562,442,177
Cents
Cents
Basic earnings per share
(0.109)
(0.137)
Diluted earnings per share
(0.109)
(0.137)
38
The consolidated financial statements incorporate the assets, liabilities and results of the following subsidiaries in accordance with the accounting
policy described in note 2:
Ownership interest
The rights to options held by option holders have not been included in the weighted average number of ordinary shares for the purposes of
calculating diluted EPS as they do not meet the requirements for inclusion in AASB 133 ‘Earnings per Share’. The rights to options are non-dilutive
as the Company has generated a loss for the financial year.
On 17 September 2024, the company announced a non-renounceable pro rata entitlement offer to eligible holders of RLC shares on a 1 for 1
basis at 0.2 cents per new RLC share, together with a related offer under which those holders can apply for shares in addition to their entitlement.
cents per new RLC share, together with a related offer under which those holders could apply for shares in addition to their entitlement.
If fully subscribed, the entitlement offer and the related offer (together, the “Offer”) will raise $1,239,000. The funds raised will be used for
exploration for gold at the Burracoppin Gold project in Western Australia and to provide working capital.
No other matter or circumstance has arisen since 30 June 2024 that has significantly affected, or may significantly affect the consolidated entity's
operations, the results of those operations, or the consolidated entity's state of affairs in future financial years.
Consolidated
On 26 July 2024, a director provided a further $50,000 to the Company, increasing the total subordinated loan to $400,000. This loan remains
interest-free and is repayable on demand only if RLC is able to make repayment and remain solvent.
In August 2024, the Company decided to reduce its exposure in the lithium sector and announced on 29 August that it would discontinue its lithium
projects located in Nevada, USA.
Consolidated
Reedy Lagoon Corporation Limited
Consolidated entity disclosure statement
As at 30 June 2024
Ownership
Place Formed /
Interest
Name
Entity Type
Country of incorporation
%
Tax Residency
Bullamine Magnetite Pty Ltd
Body corporate
Australia
100.00%
Australia
Nevada Lithium Pty Ltd
Body corporate
Australia
100.00%
Australia
Sierra Lithium LLC
Body corporate
USA
100.00%
USA*
* Sierra Lithium LLC is a US limited liability company (LLC) and has made an election to to be treated as a corporation separate from its owner
in accordance with US tax rules.
39
Reedy Lagoon Corporation Limited
Directors' declaration
30 June 2024
In the directors' opinion:
●
●
●
●
●
The directors have been given the declarations required by section 295A of the Corporations Act 2001.
Signed in accordance with a resolution of directors made pursuant to section 295(5)(a) of the Corporations Act 2001.
On behalf of the directors
___________________________
G.H. Fethers
Managing Director
30 September 2024
Melbourne
40
the attached financial statements and notes comply with the Corporations Act 2001, Australian Accounting Standards, the Corporations
Regulations 2001 and other mandatory professional reporting requirements;
the attached financial statements and notes comply with International Financial Reporting Standards as issued by the International
Accounting Standards Board as described in note 2 to the financial statements;
the attached financial statements and notes give a true and fair view of the consolidated entity's financial position as at 30 June 2024 and
of its performance for the financial year ended on that date; and
there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due and payable.
the information disclosed in the attached consolidated entity disclosure statement is true and correct.
Connect National Audit Pty Ltd is an Authorised Audit Company
Head Office: Level 11, 333 Collins St, Melbourne VIC 3000
ABN 43 605 713 040
Gold Coast Office: Level 9, Wyndham Corporate Centre, 1 Corporate Court, BUNDALL,
QUEENSLAND, 4217
Sydney Office: Level 5, 20 Bond Street, Sydney NSW 2000
Liability limited by a scheme approved under Professional Standards Legislation
w: www.connectaudit.com.au
Independent Auditor’s Report
To the Members of Reedy Lagoon Corporation Limited
Report on the Audit of the Financial Report
Opinion
We have audited the accompanying financial report of Reedy Lagoon Corporation Limited and its
controlled entities (the “Consolidated Entity”), which comprises the consolidated statement of
financial position as at 30 June 2024, the consolidated statement of profit or loss and other
comprehensive income, the consolidated statement of cash flows and the consolidated statement
of changes in equity for the financial year ended on that date, notes comprising a summary of
material accounting policies and other explanatory information, the directors’ declaration of the
company as set out on page 40 and the consolidated entity disclosure statement.
In our opinion, the financial report of Reedy Lagoon Corporation Limited and its controlled entities
is in accordance with the Corporations Act 2001, including:
(a)
giving a true and fair view of the consolidated entity’s financial position as at 30 June 2024
and of its performance for the financial year ended on that date; and
(b) complying with Australian Accounting Standards and the Corporations Regulations 2001.
Basis for opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities
under those standards are further described in the Auditor’s Responsibilities for the Audit of the
Financial Report section of our report. We are independent of the Consolidated Entity in
accordance with the auditor independence requirements of the Corporations Act 2001 and the
ethical requirements of the Accounting Professional and Ethical Standards Board’s APES 110
Code of Ethics for Professional Accountants (including independence standards) (the Code) that
are relevant to our audit of the financial report in Australia. We have also fulfilled our other ethical
responsibilities in accordance with the Code.
We confirm that the independence declaration required by the Corporations Act 2001, which has
been given to the directors of the Consolidated Entity, would be in the same terms if given to the
directors as at the time of this auditor’s report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our opinion.
Material Uncertainty Related to Going Concern
Without modifying the opinion expressed above, we draw attention to Note 2 “Material Accounting
Policies – Going Concern” which indicates the company incurred a loss for the period ended 30
June 2024 of $667,896, net liability position of $478,845 and operating cash outflows of $653,586.
Further, the company’s ability to continue the exploration and development of its mining tenements,
as they continue to assess new projects and meet operational expenditure at current levels is
dependent upon future capital raising. These conditions along with other matters as set forth in
Note 2, indicate the existence of a material uncertainty that may cast significant doubt about the
company’s ability to continue as a going concern and therefore, the company may be unable to
realise its assets and discharge its liabilities in the normal course of business.
During the previous financial year a director provided $200,000 to RLC by way of interest-free
subordinated loans repayable on demand but only if RLC is able to make repayment and remain
solvent (that is, the loan is effectively subordinated to all other creditors). The Director has agreed
that he will not at any time prior to September 2025 call for repayment of any part of the $200,000
lent by him to the Company if that repayment would jeopardise the ability of the Company to
continue to trade or meet its other liabilities as they fall due.
During the report year a director provided a further $150,000 to RLC, increasing the total
subordinated loan to $350,000. This loan remains interest free and is repayable on demand only if
RLC is able to make repayment and remain solvent. The Director has agreed that he will not at any
time prior to September 2025 call for repayment of any part of the $350,000 lent by him to the
Company if that repayment would jeopardize the ability of the Company to continue to trade or
meet its other liabilities as they fall due.
Our opinion is not modified in respect of this matter.
Key Audit Matters
Key audit matters are those matters that, in our professional judgement, were of most significance
in our audit of the financial report of the current period. These matters were addressed in the context
of our audit of the financial report as a whole, and in forming our opinion thereon, and we do not
provide a separate opinion on these matters.
Key Audit Matter
How our audit addressed the key audit
matter
Accounting Treatment of Exploration and
Evaluation Expenses
We focus on the accounting treatment of
exploration and evaluation expenses as this
represents a significant expense of the
consolidated entity and that the recognition of
this amount is significantly affected by
management’s judgement.
The
consolidated
entity
has
incurred
significant
exploration
and
evaluation
expenditures. The accounting treatment of
these expenditures (whether as capital or
expense) can have a significant impact on the
financial report. This is particularly relevant as
this consolidated entity is in an exploration
stage with no production activities. As such it
is necessary to assess whether the facts and
circumstances existed to suggest that these
expenditures were recognised in accordance
the consolidated entity’s accounting policy.
We
reviewed
the
consolidated
entity’s
accounting
policy
specifying
which
expenditures are recognised as exploration
and evaluation expenditures and its consistent
application of the relevant accounting standard
and accounting policy.
We tested samples of the expenditures to
ensure that these expenditures are associated
with finding specific mineral resources
We evaluated whether the exploration and
evaluation expenditures are expected to be
recouped,
either
through
successful
development and exploitation or through sales.
We enquired with management and evaluated
where the activities in the areas of interest
have not yet reached a stage that permits
reasonable assessment of the existence of
economically recoverable reserves.
We also considered the appropriateness of the
related disclosure in Notes 2 and 3 to the
financial statements.
Matters Relating to the Electronic Presentation of the Audited Financial Report
This audit report relates to the financial report of Reedy Lagoon Corporation Limited for the year
ended 30 June 2024 included on Reedy Lagoon Corporation Limited’s web site. The directors are
responsible for the integrity of the Reedy Lagoon Corporation Limited’s web site. We have not been
engaged to report on the integrity of the Reedy Lagoon Corporation Limited’s web site. The audit
report refers only to the statements named above. It does not provide an opinion on any other
information which may have been hyperlinked to/from these statements. If users of this report are
concerned with the inherent risks arising from electronic data communications they are advised to
refer to the hard copy of the audited financial report to confirm the information included in the
audited financial report resent on this web site.
Responsibilities of the directors for the financial report
The directors of the consolidated entity are responsible for the preparation of :
a.
The financial report (other than the consolidated entity disclosure statement) that gives a
true and fair view in accordance with Australian Accounting Standards and the Corporations Act
2001; and
b.
The consolidated entity disclosure statement that is true and correct in accordance with the
Corporations Act 2001; and
For such internal control as the directors determine is necessary to enable the preparation of:
c.
The financial report (other than the consolidated entity disclosure statement) that gives a
true and fair view and is free from material misstatement, whether due to fraud or error; and
d.
The consolidated entity disclosure statement that is true and correct and is free of
misstatement, whether due to fraud or error.
In the basis of preparation, the directors also state that the financial statements have been prepared
in accordance with Accounting Standard AASB 101 Presentation of Financial Statements, that the
financial statements comply with International Financial Reporting Standards.
In preparing the financial report, the directors are responsible for assessing the Group’s ability to
continue as a going concern, disclosing, as applicable, matters related to going concern and using
the going concern basis of accounting unless the directors either intend to liquidate the Group or
to cease operations, or have no realistic alternative but to do so.
Other Information
The directors are responsible for the other information. The other information comprises the
information included in the Group’s annual report for the year ended 30 June 2024 but does not
include the financial report and our auditor’s report thereon.
Our opinion on the financial report does not cover the other information and accordingly we do
not express any form of assurance conclusion thereon.
In connection with our audit of the financial report, our responsibility is to read the other
information and, in doing so, consider whether the other information is materially inconsistent
with the financial report or our knowledge obtained in the audit or otherwise appears to be
materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of
this other information, we are required to report that fact. We have nothing to report in this
regard.
Auditor’s Responsibilities for the audit of the financial report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is
free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that
includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee
that an audit conducted in accordance with the Australian Auditing Standards will always detect a
material misstatement when it exists. Misstatements can arise from fraud or error and are
considered material if, individually or in the aggregate, they could reasonably be expected to
influence the economic decisions of users taken on the basis of this financial report.
A further description of our responsibilities for the audit of the financial report is located at the
Auditing and Assurance Standards Board website at: http://www.auasb.gov.au/Home.aspx. This
description forms part of our auditor’s report.
Report on the Remuneration Report
Opinion on the Remuneration Report
We have audited the Remuneration Report included in pages 20 to 23 of the directors’ report for
the financial year ended 30 June 2024.
In our opinion the Remuneration Report of Reedy Lagoon Corporation Limited for the financial
year ended 30 June 2024, complies with section 300A of the Corporations Act 2001.
Responsibilities
The directors of the Consolidated Entity are responsible for the preparation and presentation of
the Remuneration Report in accordance with section 300A of the Corporations Act 2001. Our
responsibility is to express an opinion on the Remuneration Report, based on our audit conducted
in accordance with Australian Auditing Standards.
Connect National Audit Pty Ltd
ASIC Authorised Audit Company No.: 521888
ROBIN KING HENG LI CA RCA
DIRECTOR
Melbourne, VIC 3000
Date: 30 September 2024
Reedy Lagoon Corporation Limited
Shareholder information
30 June 2024
The shareholder information set out below was applicable as at 20 September 2024.
Distribution of quoted equitable securities
Analysis of number of equitable security holders by size of holding:
Number
of holders
of ordinary
shares
1 to 1,000
83
1,001 to 5,000
30
5,001 to 10,000
62
10,001 to 100,000
928
100,001 and over
555
1,658
There were 1,243 shareholders holding less than a marketable parcel of ordinary shares to the value of $500.
Equity security holders
Twenty largest quoted equity security holders
The names of the twenty largest security holders of quoted equity securities are listed below:
Total shares issued:
% of total
shares
Number held
Issued
Chromite Pty Ltd (Spinel A/C)
45,656,988
7.37
Citycastle Pty Ltd
42,503,280
6.86
Needmore Investments Pty Ltd
33,000,000
5.33
Mr Adrian C. Griffin
31,389,068
5.07
Mr Jonathan M. Hamer
23,214,874
3.75
Park Road SF Pty Ltd (Park Road Super Fund A/C)
22,500,000
3.63
Jagen Pty Ltd
20,038,623
3.23
M & K Korkidas Pty Ltd
19,829,164
3.20
Sked Pty Ltd
18,500,735
2.99
Mr Geoffrey H. Fethers
16,557,260
2.67
Pyrope Holdings Pty Ltd (Chromite Staff Super Fund A/C)
13,897,724
2.24
A C Griffin & J D Norman (Global Super A/C)
7,660,366
1.24
Wifam Investments Pty Ltd (Wischer Family Super Fund A/C)
7,425,000
1.20
Mr Johnny Tai Kwong Yue & Mrs Chan Ying Yue
6,940,976
1.12
Sked Pty Ltd (Super Fund A/C)
5,801,518
0.94
Tromso Pty Limited
5,000,000
0.81
GA & AM Leaver Investments Pty Ltd (GA & AM Leaver Super Fund A/C)
3,930,523
0.63
BNP Paribas Nominees Pty Ltd (IB AU Noms retailclient DRP)
3,451,437
0.56
Mr Paul Stewart
3,429,300
0.55
8YPA 13 Pty Ltd (Panatha Super Fund A/C)
3,319,458
0.54
Top 20 shareholders
334,046,294
53.92
Other shareholders
285,494,438
46.08
TOTAL:
619,540,732
100.00
45
619,540,732
Ordinary shares
Reedy Lagoon Corporation Limited
Shareholder information
30 June 2024
Substantial holders
Substantial holders in the Company as at 20 September 2024 are set out below:
% of total
shares
Number held
issued
Chromite Pty Ltd
Chromite Pty Ltd
45,656,988
Geoffrey H. Fethers
16,557,260
Pyrope Holdings Pty Ltd
13,897,724
Ranview Pty Ltd
771,589
76,883,561
12.41
Sked Pty Ltd
City Castle Pty Ltd
42,503,280
Sked Pty Ltd
18,500,735
Sked Pty Ltd
5,801,518
Traders Macquarie Pty Ltd
2,345,948
69,151,481
11.16
Mr Adrian C. Griffin
Mr Adrian C. Griffin
31,389,068
Mr A. C. Griffin & Ms J. D. Norman
7,660,366
39,049,434
6.30
Needmore Investments Pty Ltd
33,000,000
5.33
Voting rights
The voting rights attached to ordinary shares are set out below:
Ordinary shares
There are no other classes of equity securities.
Options on issue
Expiry Date
Exercise Price
Number
Unlisted
5.46 cents
400,000
Unlisted
1.52 cents
900,000
Unlisted
0.69 cents
900,000
46
Ordinary shares
On a show of hands every member present at a meeting in person or by proxy shall have one vote and upon a poll each share shall have one
vote.
31 December 2024
31 December 2025
31 December 2026
Reedy Lagoon Corporation Limited
Corporate directory
30 June 2024
Directors
Jonathan M. Hamer
Chairman, Non-Executive Director
Geoffrey H. Fethers
Managing Director and Company Secretary
Adrian C. Griffin
Non-Executive Director
Contact details
Phone : 03 8420 6280
Fax : 03 8420 6299
Email : info@reedylagoon.com.au
Company secretary
Geoffrey H. Fethers
Share register
Link Market Services Limited (ABN 54 063 214 537)
Tower 4, 727 Collins Street
Melbourne, Victoria 3008
Telephone : 1300 554 474
www.linkmarketservices.com.au
Auditor
Connect National Audit Pty Ltd
Suite 3211, Level 14, 333 Collins Street
Melbourne
Victoria 3000
www.connectaudit.com.au
Stock exchange listing
(ASX code: RLC)
Website
www.reedylagoon.com.au
Corporate Governance Statement
Refer to www.reedylagoon.com.au/about-us/corporate-governance/
47
Reedy Lagoon Corporation Limited shares are listed on the Australian Securities Exchange