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About Sayona
Sayona Mining Limited is an ASX 200 listed company
with a vision to support the global decarbonisation
drive by sustainably producing high quality lithium
products.
We are a purpose-led organisation that is committed
to ensuring our projects are sources of pride for our
host communities. We are actively contributing to
the electrification of transport and the fight against
climate change.
About this Report
Non-IFRS Measures
This report includes certain non-IFRS financial measures, including
underlying measures of earnings or liquidity. Non-IFRS measures
should not be considered as alternatives to an IFRS measure of
profitability, financial performance or liquidity. In the opinion of the
Company's directors, these non-IFRS measures provide useful
information to assess the financial performance of the Group over the
reporting period.
Acknowledgement
Sayona acknowledges that its operations in Canada take place on the
traditional, unceded territories of the Anishnabe and Cree First
Nations. We also wish to recognise the Anishnabe communities of
Lac Simon, Abitibiwinni and Long Point First Nation, as well as the
Cree Nation of Mistissini. Sayona recognises the people and
communities that are or have been part of these lands and territories.
In Australia, Sayona acknowledges the Traditional Owners of the land
on which we work and recognise their deep connection to the country
that they share. We pay our respects to their Elders past, present and
emerging.
This Annual Report is a summary of the operations, activities and
performance of Sayona Mining Limited (ABN 26 091 951 978) and its
controlled entities for the year ended 30 June 2023, and its financial
position as at 30 June 2023. All references to 'Sayona', 'Sayona
Mining', 'the Company', 'the Group', 'we', 'us' and 'our' refer to Sayona
Mining Limited and its controlled entities, unless otherwise stated. All
dollar figures are expressed in Australian dollars (AUD), unless
otherwise stated. This report can be viewed together with our
Environmental, Social and Governance Report and Corporate
Governance Statement at sayonamining.com.au.
Forward-Looking Statements
This report may contain certain forward-looking statements. Such
statements are only predictions, based on certain assumptions and
involve known and unknown risks, uncertainties and other factors,
many of which are beyond Sayona's control. Actual events or results
may differ materially from the events or results expected or implied in
any forward-looking statement. The inclusion of such statements
should not be regarded as a representation, warranty or prediction
with respect to the accuracy of the underlying assumptions or that any
forward-looking statements will be or are likely to be fulfilled.
Sayona undertakes no obligation to update any forward-looking
statement or other statement to reflect events or circumstances after
the date of this report (subject to securities exchange disclosure
requirements).
The information in this report does not take into account the
objectives, financial situation or particular needs of any person.
Nothing contained in this report constitutes investment, legal, tax or
other advice.
Contents
Overview
About Sayona
Our Performance
Chief Executive Officer’s Review
Operating and Financial Review
Sayona at a Glance
Our Strategy
Review of Financial Performance
Review of Operations and Projects
People and Culture
Sustainability
Governance
Board of Directors
Executive Leadership Team
Directors’ Report
Remuneration Report
Auditor’s Independence Declaration
Financial Report
Consolidated Statement of Profit or Loss
Consolidated Statement of Comprehensive Income
Consolidated Statement of Financial Position
Consolidated Statement of Changes in Equity
Consolidated Statement of Cash Flows
Notes to the Financial Statements
Directors’ Declaration
Independent Auditor’s Report
Additional Information
Mineral Resources and Ore Reserves
Tenement Schedule
Shareholder Information
Glossary
Corporate Directory
IFC
2
4
10
12
14
16
34
36
46
48
49
53
61
64
64
65
66
67
68
98
99
106
109
133
135
141
Sayona | Annual Report 2023 1
Our Performance
The successful
restart of production
at NAL was a major
milestone not only
for Sayona, but also
for Queb́ ec and
North America's
battery minerals
sector.
James Brown
2
Portfolio development
transforms outlook
A transformational year for Sayona culminating in the commencement of spodumene concentrate production at
North American Lithium, and development of our portfolio of lithium assets in Queb́ ec, Canada.
Corporate
ASX/S&P 200 Index
17%
Added to ASX/S&P 200 Index in September 2022
Annual Total Shareholder Return for year ended 30 June 2023
Strong balance sheet
Troilus acquisition
$250 million of capital raised to accelerate development of lithium
assets in Queb́ ec, Canada
Expansion of lithium portfolio through acquisition of Troilus Claims
for $44.5 million
Operations
Production restart
33,120 dmt
Successful restart of operations at North American Lithium, on-
time and within budget; first production achieved in March 2023
Spodumene concentrate production at North American Lithium for
year ended 30 June 2023
Exploration
70.9 Mt
33,757 m
JORC Mineral Resource for Moblan (at 1.15% Li O)2
Exploration drilling at Moblan for year ended 30 June 2023
Project Development
NAL – $2.2B NPV
Carbonate – $3.2B NPV
Completion of NAL Definitive Feasibility Study (DFS); uplift in
estimated pre-tax NPV from $1.0 billion to $2.2 billion
Completion of NAL Preliminary Carbonate Technical Study;
estimated pre‐tax NPV of $3.2 billion
Sayona |
Annual Report 2023
3
Chief Executive Officer’s Review
4
A transformative
year for Sayona
Dear Shareholders,
The past year has been transformative for Sayona.
The successful restart of spodumene concentrate production at
North American Lithium (NAL) marked a tremendous year of growth
for Sayona, as we evolved from a developer into a producer.
NAL and Consolidated Lithium Metals Inc. have agreed on an
aggressive drilling program of more than 50,000 metres in 2023, both
at NAL and Valleé
, with the aim of supplying increased tonnages to the
NAL concentrator.
In December 2022, the final permit was awarded for NAL's restart, with
a successful ore crushing trial conducted in January 2023.
Notably, the March 2023 restart was achieved in the timeframe we set
– a rarity nowadays in the global mining industry, where delays and
cost overruns are increasingly common.
On 8 March 2023, Sayona announced first production with
approximately 70 tonnes of concentrate produced, with the first batch
of saleable concentrate produced shortly thereafter.
In August 2023, subsequent to the end of the financial year, the first
shipment of NAL concentrate was sent to the international lithium
market. This was a significant milestone for our business, achieved
within less than two years of NAL's acquisition.
The year also saw the further expansion of our lithium resource base
in Québec, both organically and through acquisition, as Sayona
cemented its position as the leading hard rock lithium producer in
North America.
With studies showing the value of going downstream, Sayona is on
track to unlock further value for the benefit of all shareholders and
stakeholders.
Successful NAL Restart
The successful restart of production at NAL was a major milestone
not only for Sayona, but also for Queb́ ec and North America's battery
minerals sector. Early procurement of key long-lead items proved
crucial as Sayona achieved the successful restart on-time and within
budget.
In September 2022, Sayona awarded a four year contract to Queb́ ec-
based company L. Fournier & Fils to undertake mining operations at
NAL, one of the largest such contracts in the province's history, and
which delivered significant job opportunities for the region, including
First Nations communities.
Continuing Sayona's focus on delivering local economic benefits, a
Queb́ ec-based material handling operator was awarded the contract
to deliver spodumene concentrate from NAL to port, in another major
contract.
In November 2022, Sayona announced a strategic acquisition and
earn-in at Consolidated Lithium Metals Inc.'s adjacent Valleé
Lithium
Project, offering the opportunity to swiftly expand NAL's resource
base and future mine production capacity.
The only major source of new spodumene concentrate production
expected in North America in the next two years, NAL has become a
hugely significant and strategic asset. Congratulations to everyone
associated with NAL for delivering the restart so successfully, while
maintaining a strong focus on health, safety and environmental
management.
Lithium Carbonate Study
In Apriil 2023, just days after NAL's restart, Sayona announced a
Definitive Feasibility Study (DFS) estimating a pre-tax net present
value (NPV) of $2.2 billion for spodumene concentrate production at
NAL, combining both NAL and the nearby Authier Lithium Project.
This figure compares to the cost of approximately C$100 million to
acquire NAL in partnership with Piedmont Lithium and circa C$100
million spent on its restart. Previous owners invested approximately
C$400 million on the plant and operation.
The estimated NPV of $2.2 billion was more than double the estimated
NPV of $1 billion disclosed in the pre-feasibility study, reflecting the
benefits of an accelerated restart program, increased head grade, high
initial recovery rate and expanded production.
In June 2023, a preliminary technical study for lithium carbonate
production at NAL estimated a fully integrated pre-tax NPV of $5.4
billion.
Sayona and Piedmont will now work with technical advisers to
undertake a further trade-off study of lithium carbonate versus lithium
hydroxide production at NAL.
Sayona |
Annual Report 2023
5
Chief Executive Officer’s Review
Expansion of Moblan Lithium Project
Sayona's Eeyou Istchee James Bay Hub is rapidly becoming a major
lithium resource, centred on its Moblan Lithium Project in the booming
Eeyou Istchee James Bay region of northern Queb́ ec.
In November 2022, Sayona further expanded this emerging hub of
hard rock lithium resources with the acquisition of a significant
exploration package located near the Moblan Lithium Project from
Troilus Gold. Under the agreement, Sayona has acquired 1,824 claims
spanning 985 square kilometres – more than 200 times the size of the
current Moblan project.
The claims have not been extensively explored for lithium and offer the
potential for eastwards extensions to the Moblan mineralisation, as
well as regional targets in the emerging lithium district.
In April 2023, following extensive drilling, Sayona announced a
significant increase in Moblan's estimated resource. The estimated
Measured, Indicated and Inferred Resource of 70.9 million tonnes at
1.15% Li2O represents one of North America's single largest lithium
deposits.
Sayona plans to further enhance the size and grade of the resource
through additional drilling, with approximately 60,000 metres of
drilling undertaken as part of the calendar 2023 drilling program.
In July 2023, Sayona announced further drill results at Moblan,
showing another significant expansion to its lithium footprint. Notably,
the newly identified mineralisation extends outside of the April 2023
JORC resource pit shell, indicating the opportunity to increase the
existing resource.
Sayona aims to make this northern Queb́ ec hub a major production
centre, with the potential to support future downstream processing
options in Québec.
Importantly, Moblan has good access to existing infrastructure in the
Eeyou Istchee James Bay region. It is located 85 kilometres from the
Cree (First Nations) community of Mistissini and 130 kilometres
north-west of the town of Chibougamau, with year-round road access
via the Route du Nord and access to environmentally friendly
hydropower.
Investor Support
Sayona's success would not be possible without investor support,
which has made possible the development of our current lithium
resource base.
In March 2023, Sayona secured approximately $55 million from
Canadian investors under its flow-through share scheme, with the
funds supporting the Company's exploration program in Québec. In
May, Sayona secured a further $200 million through an equity
placement to institutional, professional and sophisticated investors,
providing significant funding to accelerate the development of our
portfolio of lithium assets.
Such investor support is particularly significant given recent rising
interest rates and volatile equity markets. Sayona is conscious of the
need to minimise dilution for existing shareholders, while ensuring
sufficient funding is available to achieve our strategic growth plans.
6
The Company's shareholder base has continued to increase, reaching
more than 45,000 shareholders as at September 2023, up from
around 39,000 last year. Significantly, in September 2022, Sayona
joined the benchmark S&P/ASX 200 index, reflecting the Company's
significant growth in market value, a move that has put Sayona on the
radar of leading institutional investors.
Commensurate with Sayona's elevation to the S&P/ASX 200 index, the
Company is undergoing a governance revamp with plans to recruit
new independent Non-Executive Directors, including an independent
Chairman.
The Company will also establish key governance committees and
review Board and executive remuneration to ensure alignment of
corporate governance practices with leading practices of S&P/ASX
200 listed companies, including gender diversity.
Growth Strategy
Sayona has an extremely exciting outlook, as shown by our growth
strategy which aims to cement our position as the leading hard rock
lithium producer in North America.
After the major milestones over the last twelve months, the next fiscal
year will see our first revenue following NAL's inaugural shipment in
August 2023, with further shipments planned. Drilling at NAL and the
nearby Valleé
Lithium Project together with resource upgrades at
Moblan should further enhance our lithium resource base.
Western Australia is also part of Sayona's future expansion, with
drilling planned for the Company's lithium and gold projects in the
resource-rich Pilbara region.
Looking further forward, it is obvious that the clean energy transition
powered by battery minerals such as lithium is only just getting
started. With the global uptake of electric vehicles continuing to
accelerate along with energy storage, lithium-carbonate equivalent
(LCE) demand has been projected to exceed 3.7 million tonnes by
2030, turbocharged by initiatives such as the U.S. Inflation Reduction
Act.
As stated by analysts Benchmark Mineral Intelligence, “The challenge
now lies firmly on bringing new lithium mines to production and
massively expanding existing operations. New lithium producers have
to build into a market in excess of 2 million tonnes LCE a year, not the
640,000 tonne LCE market that we saw in 2022.”
Bridging the gap between demand and supply will require all of our
resources, including capital, labour and know-how, together with
continued backing from shareholders and government, such as seen
from Canadian Prime Minister Justin Trudeau and the Québec
Government.
With your support, I am very confident Sayona has a key role to play in
this clean energy revolution, now and for decades to come.
Yours sincerely
James Brown
Executive Director and Interim Chief Executive Officer
Sayona |
Annual Report 2023
7
8
Operating
and Financial
Review
Governance
Financial
Report
Additional
Information
Operating
and Financial
Review
Sayona at a Glance
Our Strategy
Review of Financial Performance
Review of Operations and Projects
People and Culture
Sustainability
10
12
14
16
34
36
Sayona | Annual Report 2023 9
Sayona at a Glance
International portfolio of
high quality lithium assets
M ntréal ffi e
Eeyou Istchee James Bay Hub
Lac Albert Lithium Project (100%)
Stage:
Product:
Early stage
Spodumene concentrate
Moblan Lithium Project (60%)
Stage:
Product:
Exploration
Spodumene concentrate
Troilus Claims (100%)
Stage:
Product:
Early stage
Spodumene concentrate
Abitibi-Témiscamingue Hub
North American Lithium (75%)
Stage:
Product:
Production
Spodumene concentrate
Authier Lithium Project (75%)
Stage:
Product:
Permitting
Spodumene concentrate
Tansim Lithium Project (75%)
Stage:
Product:
Early stage
Spodumene concentrate
Vallée Lithium Project
Stage:
Product:
Exploration
Spodumene concentrate
10
Operating
and Financial
Review
Governance
Financial
Report
Additional
Information
Morella Lithium Joint Venture (49%)
Stage:
Product:
Exploration
Spodumene concentrate
WA Lithium (100%)
Stage:
Product:
Exploration
Spodumene concentrate
WA Gold (100%)
Stage:
Product:
Exploration
Gold
Lithium
Gold
Graphite
Office
WA Graphite (100%)
Stage:
Product:
Early stage
Graphite
Brisbane Office
Sayona |
Annual Report 2023
11
Our Strategy
Pr u in minerals
riti al t the
ele trifi ati n transiti n
Our purpose, strategy, values and guiding principles are fundamental in shaping the work that we do and the way that
we do it. Our people work tirelessly each and every day to execute our strategy and achieve our purpose for the benefit
of all stakeholders.
Our Purpose
Our purpose is to support the global decarbonisation drive by sustainably producing high quality
lithium products. We are trusted by our partners and committed to ensuring our projects are sources
of pride for our host communities.
Our Strategy
Our strategy is focused on four key pillars which shape the decisions and activities required to
achieve our purpose:
Optimise
operations
Expand
resource base
Develop
assets
Strategic
partnerships
Maximise returns
and cash flow by
sustainably optimising
our operations
Expand known mineral
resources, and continue
value accretive
exploration
Rapidly develop
upstream assets and
pursue value accretive
growth options
Develop strategic
partnerships to lock-in
demand, provide access
to end markets, and
accelerate development
of our portfolio
12
Operating
and Financial
Review
Governance
Financial
Report
Additional
Information
Our Values
Integrity
Sayona places the integrity of its organisation
and its leaders at the heart of its fundamental
values by honouring its commitments and
following its guiding principles.
Respect
Sayona is committed to conducting its mining activities
with respect for the environment, local communities,
and all the stakeholders involved. It ensures that it
respects the people around its organisation and treats
them with dignity and kindness.
Excellence
Sayona aims to achieve optimal and sustainable results by
promoting an approach built on learning and continuous
improvement. It uses industry best practices and
transforms innovative ideas into tangible results for the
benefit of communities, shareholders, and stakeholders.
Our Guiding Principles
A t trans arently
Act t ensure the
m any’s
sustainability
Act in harmony
with host
mmunities
Act to protect the
environment by
promoting the
circular economy
and applying
best practice
Act with respect for
our teammates, their
health, safety and
wellbeing, and
promote the
development
of their skills
Sayona |
Annual Report 2023
13
Review of Financial Performance
Strong balance sheet
positions business for
future growth
Sayona ended the financial year in a strong financial position. The restart of operations at North American Lithium,
which was completed on-time and within budget, paved the way for the inaugural shipment and cash proceeds from
customers in August 2023.
During the year, Sayona strengthened its balance sheet and liquidity position to accelerate the development of its
portfolio of lithium assets in Queb́ ec, Canada.
Highlights
17%
$1.76B $885M
$211M
Annual Total
Shareholder Return
Market
Capitalisation
Annual Total Shareholder
Return for year ended
30 June 2023
Market capitalisation
of Sayona Mining Limited
as at 30 June 2023
Net Assets
Net assets of the Group
as at 30 June 2023
Cash and
Cash Equivalents
Cash and cash equivalents
of the Group
as at 30 June 2023
Key Financial Metrics
Total revenue ($M)
Profit/(loss) after income tax ($M)
Net cash flows from operating activities ($M)
Cash and cash equivalents ($M)
Total assets ($M)
Total liabilities ($M)
Net assets ($M)
Basic earnings per share (cents)
Dividends paid (cents per share)
Closing share price at 30 June ($)
Market capitalisation ($M)
Annual total shareholder return (%)
FY23
-
(13)
(66)
211
1,010
125
885
(0.16)
-
0.175
1,757
17
FY22
-
74
(14)
185
661
101
561
0.76
-
0.15
1,238
72
FY21
-
(4)
(11)
36
72
4
68
(0.13)
-
0.087
468
1,179
FY20
-
(5)
(4)
1
22
1
21
(0.26)
-
0.0068
17
(15)
FY19
-
(2)
(3)
2
22
1
21
(0.13)
-
0.008
14
(80)
Total shareholder return increased by 17% for the year ended 30 June 2023, driven primarily by the successful restart of operations at North American
Lithium and expansion of mineral resources at the Moblan Lithium Project. Since 30 June 2020, Sayona has increased shareholder value by
approximately 25 times.
14
Operating
and Financial
Review
Governance
Financial
Report
Additional
Information
Sayona |
Annual Report 2023
15
Review of Operations and Projects
North America’s
leading hard rock lithium
resource base
Eeyou Istchee James Bay Hub
Abitibi-Témiscamingue Hub
Lithium
Office
16
Montr al Office
é
Operating
and Financial
Review
Governance
Financial
Report
Additional
Information
Hudson Bay
QUÉBEC
NEWF UN LAN
Lac Albert Lithium Project
Moblan Lithium Project
Troilus Claims
Eeyou Istchee James Bay Hub
NTARI
Authier Lithium Project
North American Lithium
Vallée Lithium Project
Abitibi-Témiscamingue Hub
NEW
BRUNSWICK
Tansim Lithium Project
Québec
City
Montreal
Montr al Office
é
Lithium
Office
Port
250km
U.S.A.
USA
Sayona |
Annual Report 2023
17
Review of Operations and Projects
Abitibi-Témiscamingue
Hub
18
Operating
and Financial
Review
Governance
Financial
Report
Additional
Information
North American
Lithium
407,034 wmt
Ore Mined
33,120 dmt
Spodumene Concentrate Produced
58.0 Mt
JORC Mineral Resource (at 1.23 Li O)2
226,000 wmt
Annual Nameplate Capacity
Project Overview
NAL comprises a contiguous group of 42 mineral titles (41 claims, one
mining lease) spanning 1,493 hectares, situated near La Corne
township in Québec's Abitibi-Témiscamingue region. The operation
has a lithium mine and concentrator, with production of spodumene
concentrate having recommenced in March 2023.
The project lies 60 kilometres north of the city of Val d'Or, a major
mining service centre, and in proximity to the Authier Lithium Project.
NAL is owned 75% by Sayona and 25% by Piedmont Lithium (Nasdaq:
PLL; ASX: PLL).
Safety and Sustainability
Sayona is focused on providing a work environment where human
health and safety is a priority for everyone. The Company is
committed to investing in the communities in which we operate to
provide them with a better future, as part of our commitment to
sustainability and social responsibility.
The Total Recordable Injury Frequency Rate (TRIFR) for the year
ended 30 June 2023 was 6.04. With the rapid increase in employees
and contractors to support the ramp-up of operations at NAL, frequent
meetings have been conducted with all personnel to reinforce best
practice regarding health and safety.
In May 2023, Sayona published its 2022 Environmental, Social and
Governance (ESG) report. The report reflects Sayona's ongoing
commitment to social responsibility in the communities in which it
operates. During the year, the Company continued to develop its ESG
strategy through engagement with a range of stakeholders.
1
1 Report can be found at https://sayonamining.com.au/sustainability
Operational Performance
Sayona's primary focus in fiscal 2023 was the restart of spodumene
concentrate production at NAL. The restart commenced on time in Q3
FY23, culminating in the first spodumene concentrate production in
March 2023 as part of the commissioning process. The first shipment
of 19,200 dry metric tonnes of concentrate occurred in August 2023,
subsequent to period end.
The first full quarter of operations was achieved in Q4 FY23. The
average spodumene concentrate grade achieved was in line with
targeted grades, with all key spodumene concentrate parameters in
line with offtake specifications. For the full financial year, NAL
recorded 33,120 tonnes of spodumene concentrate production.
Project Development
In April 2023, Sayona announced a DFS combining the NAL operation
and Authier Lithium Project. The pre-tax net present value (NPV) of the
project was estimated at $2.2 billion (8% discount rate), representing a
significant increase from the pre-tax NPV of $1 billion disclosed in the
pre-feasibility study.
The operation is expected to generate estimated total net revenue of
$7.6 billion with an EBITDA of $3.7 billion, based on life-of-mine annual
average concentrate production of 190,000 tonnes, supporting an
after-tax Internal Rate of Return of 2,545%. This clearly demonstrates
the Abitibi-Témiscamingue lithium hub's long‐term financial and
technical viability.
In June 2023, Sayona announced the results of a preliminary
carbonate technical study for NAL, confirming the benefits of moving
into downstream processing. Study highlights included an estimated
pre‐tax NPV (8% discount) of $3.2 billion and pre‐tax internal rate of
return of 60%, with the project expected to generate an estimated
EBITDA of $7.5 billion over the 16‐year life of the carbonate plant. The
pre-tax NPV of fully integrated downstream operations at NAL is now
estimated at $5.4 billion, including the NAL DFS.
Exploration
The current Life of Mine (LOM) has been estimated at 20 years,
however Sayona is advancing a 50,000 metre drilling program for NAL
and the adjacent Vallée Lithium Project to identify additional
resources and conversion of Inferred Resources to Measured and
Indicated Resources. The program commenced in Q4 FY23. At 30
June 2023, 31 holes (8,572 metres) had been drilled as part of Phase 1
of the program, with results pending.
FY24 Outlook
NAL's ramp-up will continue in fiscal 2024, with the operations team
continuing to focus on improving process plant utilisation, throughput
and ore processed based on continuous improvement initiatives.
Sayona |
Annual Report 2023
19
Review of Operations and Projects
Authier
Lithium Project
17.1 Mt
JORC Mineral Resource (at 1.01 Li O)2
24
Number of Claims
884 ha
Hectares of Claims
Project Overview
The Authier Lithium Project in Queb́ ec is a hard rock spodumene
lithium deposit set to play a key role in the Company's multi-project
Abitibi-Témiscamingue Hub, providing supplementary ore for
processing at NAL.
The project is located approximately 70 kilometres north-west of the
city of Val d'Or and is easily accessed by a rural road network
connecting to a national highway a few kilometres east of the project
site. The project area comprises 24 mineral claims totalling 884
hectares.
Sayona continues to advance regulatory approvals for the project.
With the commissioning of the NAL facility, the approval will be based
on a much smaller environmental footprint, with no requirement for a
concentrator on-site.
Project Development
In November 2022, Sayona submitted the Authier project for
Environmental Impact Assessment (EIA) and review under the
Québec Government's 'BAPE' (Bureau d'audiences publiques sur
l'environnement) process, demonstrating the Company's
commitment to transparency and stakeholder engagement. The
request was accepted by the Québec Government in February 2023.
In June 2023, Sayona surveyed stakeholders regarding the EIA for the
Authier Lithium Project. The survey provided valuable feedback on
areas to be addressed in the EIA process.
FY24 Outlook
A revised Environmental and Social Impact Assessment for the
project will be produced by December 2023. Sayona will continue to
engage with key stakeholders and advance regulatory approvals for
the project during fiscal 2024, with the goal of supporting production
at NAL.
20
Operating
and Financial
Review
Governance
Financial
Report
Additional
Information
Tansim
Lithium Project
352
Number of Claims
20,372 ha
Hectares of Claims
Project Overview
The Tansim Lithium Project is situated 82 kilometres south-west of
the Authier Lithium Project. Tansim comprises 352 mineral claims
spanning 20,372 hectares and is prospective for lithium, tantalum,
and beryllium.
Mineralisation is hosted within spodumene-bearing pegmatite
intrusions striking east-west, dipping to the north and hosted by
metasedimentary – metavolcanic rocks of the Pontiac sub-province.
The main prospects are Viau-Dallaire, Viau and Vezina.
Project Development
No work was carried out at Tansim during the period as activities
focused on NAL and Moblan.
Sayona is focused on ensuring the project generates maximum
benefits for all local stakeholders, including First Nations people,
together with minimising any environmental impacts.
FY24 Outlook
Sayona continues to engage with key stakeholders, including First
Nations communities, concerning the project and its potential future
development.
Sayona |
Annual Report 2023
21
Review of Operations and Projects
Vallée
Lithium Project
28
Number of Claims
1,247 ha
Hectares of Claims
Project Overview
The Vallée project is located in Abitibi, Québec, near the township of La
Corne. The project is situated within the heart of the southern portion
of the Abitibi Greenstone Belt, approximately 60 kilometres north of
Val‐d'Or and contiguous and adjacent to the NAL mine.
In November 2022, Sayona announced a strategic acquisition and
earn‐in between NAL and Consolidated Lithium Metals Inc. at CLM's
Vallée Lithium Project. The acquisition and earn-in by NAL comprised
48 claims spanning approximately 1,997 hectares, located adjacent to
the NAL operation.
Project Development
Key aspects of the transaction included the acquisition of 20 claims
outright and the right to earn up to a 51% stake in an additional 28
claims, based on spending and funding milestones.
NAL is required to spend C$4 million on exploration activities prior to
14 November 2023 to earn an initial 25% interest in the Vallée JV. NAL
has a second option to spend an additional C$6 million by 14
November 2024 to earn a cumulative 50% interest.
The 20 claims acquired outright span 755 hectares, providing an
immediate extension to the NAL operating area and allowing for
potential future infrastructure expansion at the NAL mine and its
processing facility. Pegmatite targets are located close to and along
strike from the NAL ore body.
Exploration
FY24 Outlook
In May 2023, a drilling program commenced over the NAL claims. Of
the 50,000 metres of planned drilling, approximately 15,000 metres
relates to the Vallée Lithium Project claims.
Post period end, in September 2023 CLM announced the start of the
2023 drilling program, consisting of 14,500 metres of drilling in around
45 drill holes. This aims to expand upon the lithium pegmatites
discovered in 2021, 2022 and 2023, which remain open along strike to
the south-east and at depth, as well as testing the on-strike extension
of the NAL pegmatite swarm.
22
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Information
Sayona | Annual Report 2023 23
Review of Operations and Projects
Eeyou Istchee
James Bay Hub
24
Lac Albert
Lithium Project
121
Number of Claims
6,592 ha
Hectares of Claims
Project Overview
In January 2022, Sayona announced the acquisition of 121 new
claims in the vicinity of Moblan known as the Lac Albert Lithium
Project. Located 3.5 kilometres west of the Moblan Lithium Project, in
the same proven lithium mining province, the new claims span 6,592
h e c t a r e s a n d w i l l b e a s s e s s e d f o r l i t h i u m p e g m a t i t e
occurrences.These claims are separate to the Moblan Lithium
Project.
Project Development
Past work has been limited and the geology of the new claim area at
Lac Albert is modestly understood, with much of the area obscured by
glacial moraines. A till and soil sampling program was undertaken at
Lac Albert in May 2022 and mapping of outcrops and boulders
completed.
The identified pegmatite occurrences are located in an area afforded
favourable access by its proximity to the Route Du Nord, an all-
weather regional highway.
No activities were undertaken at the project during the period.
FY24 Outlook
Sayona continues to evaluate the project for potential further
exploration, with the project adding to the Company's Eeyou Istchee
James Bay Hub centred on the Moblan Lithium Project.
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Information
Sayona |
Annual Report 2023
25
Review of Operations and Projects
Moblan
Lithium Project
70.9 Mt
JORC Mineral Resource (at 1.15 Li O)2
20
Number of Claims
433 ha
Hectares of Claims
Exploration
In April 2023, Sayona announced a significant resource upgrade for
the Moblan Lithium Project with an initial JORC Mineral Resource
estimate, including a maiden resource for the South Pegmatite
discovery.
Sayona now estimates a total JORC Measured, Indicated and Inferred
Resource of 70.9 million tonnes at 1.15% Li O (0.25% Li O cut‐off
grade), representing one of North America's single largest lithium
resources.
2
2
This estimate includes higher grade tonnage opportunities with a
Measured, Indicated and Inferred Resource of 51.4 million tonnes at
1.31% Li O (0.55% Li O cut-off grade in the sensitivity analysis).
2
2
Project Overview
The Moblan Lithium Project is located in the Eeyou Istchee James Bay
region of northern Québec. The project comprises 20 claims covering
approximately 433 hectares and is host to high-grade lithium
mineralisation.
In October 2021, Sayona completed the acquisition of the Moblan
project in a joint venture with SOQUEM Inc, a wholly owned subsidiary
of Investissement Québec (Sayona 60%; SOQUEM Inc 40%).
Project Development
In October 2022, Sayona announced the launch of a feasibility study
for Moblan, targeting the development of a lithium mine and
concentrator.
At 30 June 2023, a total of 163 holes totalling 33,757 metres had been
drilled as part of the 2023 exploration drilling program.
FY24 Outlook
Sayona aims to further enhance the size and grade of this resource
through additional drilling. A total of 60,000 metres of exploration
drilling is planned to be completed during calendar 2023.
Positive drilling results were announced in July 2023 identifying a 750
metre extension to the flat lying South Pegmatite system, as well as
new, near surface pegmatite identified in eastern step out drilling.
Following the announcement of the April 2023 Mineral Resource
estimate, Sayona will proceed directly to a DFS, expected to be
released by the end of 2023. The study will examine the development
of a mine and concentrator, with Moblan serving as the centre of
Sayona's Eeyou Istchee James Bay Hub.
26
Troilus
Claims
1,824
Number of Claims
98,423 ha
Hectares of Claims
Project Overview
In an expansion of Sayona's northern lithium hub, in November 2022
the Company acquired 1,824 claims comprising 985 square
kilometres from Troilus Gold Corp. The claim area is more than 200
times the size of the existing Moblan project.
These claims are separate to the Moblan Lithium Project and extend
over a major part of the Frotêt‐Evans Greenstone Belt.
The claims have not been extensively explored for lithium and offer
potential for eastwards extensions to the Moblan mineralisation, as
well as regional targets in the emerging lithium district.
Project Development
No activities were undertaken during the period.
FY24 Outlook
Sayona continues to evaluate the project for potential further
exploration, with the Troilus claims considered an investment in future
lithium production potential.
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Annual Report 2023
27
Review of Operations and Projects
Highly prospective
lithium and gold assets in
Western Australia
WA Gold
WA Lithium
WESTERN
AUSTRALIA
WA Lithium
WA Graphite
NORTHERN
TERRITORY
QUEENSLAND
SOUTH
AUSTRALIA
Lithium
Gold
Graphite
Office
Brisbane Office
NEW SOUTH WALES
VICTORIA
TAS.
28
Operating
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Information
Lithium
Gold
Graphite
Port
WYNDHAM
WA Graphite
WA Lithium
PORT HEDLAND
WODGINA LITHIUM MINE
WA Gold
PILGANGOORA LITHIUM MINE
WESTERN
AUSTRALIA
GERALDTON
MT MAGNET
WA Lithium
KALGOORLIE
PERTH
250km
Sayona |
Annual Report 2023
29
Review of Operations and Projects
Western Australia
30
WA Lithium
and Gold Projects
14
Number of Claims
106,400 ha
Hectares of Claims
Project Overview
Morella Lithium Joint Venture Project
Morella Corporation Limited (ASX: 1MC) is manager and major
stakeholder in the Morella Lithium Joint Venture Project in Western
Australia, having satisfied its requirements under the Earn-in
Agreement of expenditure of $1.5 million on exploration within three
years to earn a 51% stake. The JV comprises lithium rights to six
tenements in the Pilbara covering 545 square kilometres and two
tenements in South Murchison covering 48 square kilometres.
WA Lithium Projects
Sayona holds the lithium rights to the Deep Well, Tabba Tabba, Red
Rock, Mt Dove, Friendly Creek and Indee tenements, which cover a
total of 471 square kilometres. The most advanced is the Tabba Tabba
Project, where exploration has identified rare metal pegmatites.
WA Gold Projects
Sayona's 10 Pilbara gold leases are prospective for intrusion-related
gold mineralisation, similar in style to the Hemi gold discovery. The
Company is using its knowledge of late-stage intrusions, built up in the
search for pegmatite mineralisation, to fast-track identification of
Hemi style targets.
Exploration
Morella Lithium Joint Venture Project
Project work has continued to advance targeting for albite –
spodumene pegmatite.
WA Lithium Projects
Exploration has focussed on advancing the early stage lithium tenure.
An increase in the geological understanding of the areas combined
with geochemistry and other activities has been carried out to identify
drill targets.
WA Gold Projects
Activities advanced the planned first drill testing at the Mt Dove project
and encouraging results from stage 1 Deep Well drilling outlined
scope for further deeper drilling.
At Mt Dove, a Heritage Survey was successfully completed in
consultation with the Kariyarra Traditional Owners and Kariyarra
Aboriginal Corporation. This will allow drilling to test magnetic
features and structural targets for bedrock gold anomalism.
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Annual Report 2023
31
Review of Operations and Projects
FY24 Outlook
Morella Lithium Joint Venture Project
Subsequent to the end of Q4 FY23, Morella announced that Mallina
drilling results had identified new areas of mineralisation and
extensions to existing mineralised zones, suggesting the strong
possibility of additional lithium discoveries beyond the currently
explored area. Further infill drilling to further develop an
understanding of the width and depth of the Pegmatite 2 target area is
planned, together with work to advance other areas at the Mallina
project and the regional tenure.
WA Lithium Projects
Drilling is planned at Tabba Tabba to test the Turley and Roadside
prospects and for potential spodumene rich zonation to the south of
the Tabba Tabba Tantalum Mine pegmatite system. Further work is
planned to advance drill targeting within the greater project area.
WA Gold Projects
Drilling is planned at Mt Dove once the final Heritage Survey report has
been delivered and at Deep Well as a follow up to geochemical
anomalism and in further testing of magnetic targets. Systematic first
pass exploration will continue over the other leases.
32
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Annual Report 2023
33
People and Culture
Establishing a highly
talented, diverse and
inclusive workforce
Our workforce is our most important resource, providing the skills,
experience and technical expertise required to run our business.
At Sayona, we aim to attract, recruit and retain the best talent by
supporting our people and providing meaningful employment and
career development opportunities.
Attraction and Retention
Talent markets across the globe are dynamic and increasingly
competitive. We continue to refine our attraction and retention
strategies to improve our total value proposition. This is achieved
through strategic workforce planning, talent acquisition, inclusion and
diversity, internal talent management, and employee mobility.
In addition, Sayona regularly reviews its remuneration frameworks
and reward structures to ensure we are competitively placed in the
market. We believe our purpose, strong culture and values, and
unwavering commitment to our people is our competitive edge in
attracting and retaining the best talent to run our business.
We offer competitive remuneration and invest in development
programs to build capability and improve performance.
Inclusion and Diversity
At Sayona, we believe that an inclusive and diverse workforce
promotes safety, productivity and wellbeing, and greatly assists our
ability to attract and retain employees.
Our approach is centred on establishing a workforce that is truly
representative of society. Our systems, processes and practices are
also designed to support the fair treatment of our people.
Culture and Values
Sayona has built a strong and dynamic culture, based fundamentally
on its core set of values:
– Integrity
We place the integrity of our organisation and its leaders at
the heart of our values by honouring our commitments and
following our guiding principles.
– Respect
We are committed to conducting our mining activities with
respect for the environment, local communities, and all the
stakeholders involved.
– Excellence
We aim to achieve optimal and sustainable results by
promoting an approach built on learning and continuous
improvement.
Our values are demonstrated through our guiding principles:
1) act transparently;
2) act to ensure the Company's sustainability;
3) act in harmony with host communities;
4) act to protect the environment by promoting the circular
economy, and applying best practice;
5) act with respect for our teammates, their health, safety and
wellbeing, and promote the development of their skills.
Highlights
189
Total Global
Workforce
Global workforce
as at 30 June 2023,
including employees
and excluding
contractors
34
232%
Annual Workforce
Growth
Growth in global
workforce from
1 July 2022 to
30 June 2023
22%
Total Female
Participation
Female
representation
across global
workforce as at
30 June 2023
21%
39
Total Female
Participation at NAL
Total Indigenous
Participation at NAL
Female
representation at
North American
Lithium as at
30 June 2023
Total Indigenous
employees and
contractors at
North American
Lithium as at
30 September 2023
Flexibility and Support
Sayona offers employees the flexibility to work remotely to improve
their work-life balance.
We also provide accommodation for employees who live more than
130 kilometres from their workplace.
Actions and Key Focus Areas
Other key focus areas for Sayona include:
–
–
–
–
–
–
–
–
–
–
–
–
–
–
continuation of transparent day-to-day communication at
all levels;
continuation of wellness and other activities to improve
employee wellbeing;
creation of a diverse and inclusive workforce;
elimination of “undue barriers”;
enhancement of localised human resource practices
through personal development interviews and training, and
improved career monitoring;
establishment of share purchase plan for employees;
implementation of ongoing career development levers;
improvement in female and Indigenous participation
across all levels of the organisation;
ongoing consultation with employees who reside in host
communities impacted by our projects;
ongoing training and professional development;
refinement of onboarding processes;
refinement of remuneration frameworks and structures to
ensure parity at all levels;
refinement of rules and expectations for staff;
standardisation of compensation policies.
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Sayona |
Annual Report 2023
35
Sustainability
Creating long-term value
from sustainable operations
Say na is ena lin the l al transiti n t a l w ar n w rl y
sustaina ly r u in hi h uality lithium r u ts.
The su ly f lithium is essential t manufa ture atteries use t
wer lean ener y te hn l ies, whi h is a key ena ler t eliver
e ar nisati n tar ets a r ss the l e.
ur Sustaina ility A r a h
Sustaina ility is at the heart f ur r anisati n an un er ins the
elivery f ur strate y. In eliverin ur ur se, Say na seeks t
reate l n -term s ial, envir nmental an e n mi value f r the
mmunities in whi h we erate.
ur a r a h t sustaina ility is ase n f ur key rin i les whi h
are riti al t ur usiness an stakeh l ers:
– Res e t
We erate with res e t f r ultures, ust ms, s ial values,
laws an human ri hts.
– Health an Safety
We are mmitte t r vi in a w rk envir nment in whi h
the health, safety an well ein f ur e le is a ri rity.
– Envir nmental vernan e
We aim t minimise ur envir nmental im a t an are
mmitte t r te tin natural res ur es in lu in air,
i iversity, water an surr un in e systems.
– S ial Res nsi ility
We are mmitte t ntri utin t the s ial an e n mi
evel ment f the mmunities in whi h we erate, an
maintainin fair an res e tful relati nshi s with ur
em l yees an external artners. We a tively en a e with
ur h st mmunities y listenin t their nee s an
ntri utin t their visi n f a sustaina le future.
Re rtin Stan ar s an Framew rks
ur strate ies an re rtin are re are in a r an e with the
f ll win stan ar s an framew rks:
– E uat r Prin i les (EPs);
– l al Re rtin Initiative ( RI);
– IF Perf rman e Stan ar s n Envir nmental an S ial
Sustaina ility;
– Internati nal Sustaina ility Stan ar s B ar (ISSB);
– Sustaina ility A untin Stan ar s B ar (SASB);
– Task F r e n limate-Relate Finan ial is l sures (T F );
– Task F r e n Nature-Relate Finan ial is l sures (TNF ).
Pri rities f r a Sustaina le Le a y
In 2022, Say na e an evel in its Envir nmental, S ial an
vernan e (ES ) strate y ase n ur key rin i les. ur strate y
is use t mana e risk an inf rm strate i e isi n-makin , an als
ui es Say na's a ti ns an r rate values.
In a iti n, Say na has i entifie seven main ri rities ase n
market tren s, in ustry insi hts an stakeh l er ex e tati ns:
– Health an Safety
Ÿ Health, Safety an Well ein
Ÿ Trainin an evel ment
Ÿ W rk la e ulture an En a ement
– Envir nmental vernan e
Ÿ limate han e
Ÿ Envir nment an Bi iversity
– S ial Res nsi ility
Ÿ In i en us mmunities
Ÿ S i -E n mi evel ment
These ri rities have als een ali ne t the Unite Nati ns
Sustaina le evel ment als (UNS ).
36
Health and Safety
At Say na, the health an safety f ur em l yees is aram unt in
everythin that we . We are mmitte t w rkin t ether t uil
an in lusive an iverse w rk envir nment in whi h ur e le are
su rte .
Effe tive mmuni ati n an En a ement
In 1 FY23, Say na hel a maj r meetin with em l yees at NAL t
share the m any's ur se, strate y an values. The meetin was
a reat rtunity t is uss as e ts f Say na's ulture, whilst als
r vi in an verview f ther key r je ts a r ss ue ́ e .
In 2 FY23, Say na laun he an internal mmuni ati ns am ai n
at NAL t f ster team hesi n, m tivate staff an unite em l yees
ar un a mm n al – namely, the su ess f the r je t.
Milest nes were i entifie t frame ea h small a hievement as a ste
t war s the su essful restart f the r essin lant at NAL. The
am ai n in lu e internal si ns an sters, newsletters,
ele rati ns with em l yees, an rewar s t re nise the eff rts f
em l yees.
A ti ns an Key F us Areas
S me f the key a ti ns un ertaken y Say na ver the ast year
in lu e:
–
–
–
–
–
ntinuati n f VI -19 r t ls, as instru te y
u li health auth rities;
ntinue vi ilan e y erati nal teams t revent any
ex l rati n in i ents;
evel ment f relevant u ati nal health an safety
umentati n f r E L ® ertifi ati n ahea f
e l yment in 2023;
a analysis in relati n t risk mana ement r esses an
ra ti es;
im lementati n f Syna se mana ement s ftware t
im r ve a ess t trainin materials;
– man at ry trainin f r em l yees u n mmen ement
f em l yment.
ther key f us areas f r Say na in lu e:
–
–
–
ntinue enhan ement f injury reventi n a tivities;
evel ment f Emer en y Measures Plan (EMP);
evel ment f trainin urses n envir nmental est
ra ti e.
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and Financial
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Sayona |
Annual Report 2023
37
Environmental Governance
Say na values the i l i ally an e l i ally ri h envir nments in
whi h it erates, an is mmitte t mana in an r te tin these
iverse e systems.
Envir nmental Mana ement System
Say na's internal envir nmental mana ement system (EMS) was
evel e an im lemente in 2022.
The EMS r vi es a framew rk f r im r vin the m any's
envir nmental erf rman e, all win e isi n makers t evaluate
risks an take ifferent as e ts int a unt when makin strate i
e isi ns. As a re art f Say na's usiness strate y, this system is
esi ne t mana e an m nit r risks an r vi e the means t
a ly in ustry-lea in stan ar s an ra ti es.
In the ast year, Say na evel e a Sustaina le evel ment P li y
whi h i entifie an evaluate the si nifi ant envir nmental im a ts
f all a tivities a r ss ur erati ns. This li y resulte in an a ti n
lan with je tives an tar ets f r strate i e isi ns an risk
mana ement.
Say na als evel e an Envir nmental Mana ement Manual,
whi h utlines its eneral hil s hy an the way envir nmental
a ti ns are im lemente .
T war s Sustaina le Minin Initiative
Say na is mmitte t its ui in rin i les f a tin res nsi ly
an a tin s ial, envir nmental an e n mi ra ti es that
refle t the ri rities an values f its h st mmunities.
As art f ur mmitment, Say na is arti i atin in the Minin
Ass iati n f ana a's (MA ) T war s Sustaina le Minin (TSM)
initiative, a l ally re nise erf rman e system that hel s minin
m anies evaluate an mana e their envir nmental an s ial
res nsi ilities.
T r vi e the eneral u li with a m rehensive insi ht int the
m any's erf rman e a r ss vari us s ial an envir nmental
areas, the MA re uires its mem ers t im lement hi h-level
measures an u lish the results f these measures within three
years f j inin the initiative.
UL E L ® ertifi ati n f r Mineral Ex l rati n
Say na has mmitte t tainin UL E L ® ertifi ati n f r
mineral ex l rati n t maintain sustaina ility est ra ti es a r ss
its ex l rati n r rams. This ertifi ati n — the nly vali thir - arty
ertifi ati n f r mineral ex l rati n in ana a — re nises
s ial, envir nmental, e n mi an vernan e ra ti es. Say na
evel e its r ram in 2022, with the first in e en ent au it
s he ule t take la e in 2023.
Sustainability
Sustainability
38
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Bi iversity Mana ement
In 2022, Say na evel e an im lemente a Bi iversity
nservati n P li y, an mmitte t the r te ti n f status
s e ies an their ha itats at NAL thr u h an u ate Avian Wil life
M nit rin Pr ram.
Mine l sure an Reha ilitati n
l sure an reha ilitati n f a minin asset is a m lex task whi h
ses many hallen es f r the erati n, envir nment an key
stakeh l ers. l sure lannin mmen es in the early sta es f the
r je t an ntinues thr u h ut the erati nal life f the mine t
i entify risks ass iate with l sure ver time.
Say na re nises that str n en a ement with the re ulat r an
key stakeh l ers is riti al in ensurin a sitive le a y n e
erati ns have ease .
Tailin s Mana ement
Say na has a te in ustry est ra ti e f r the safe an
res nsi le mana ement f its tailin s st ra e fa ilities.
The evel ment f the erati ns, Maintenan e an Surveillan e
( MS) Manual aims t im lement site-s e ifi systems f r
res nsi le tailin s mana ement an ena le tailin s en ineerin an
mana ement rin i les t e a lie nsistently.
Water Mana ement
Water use in re r essin at NAL is 100% re y le . The water use
is um e fr m the tailin s n , with any sur lus water at the en f
the treatment r ess returne t the same n f r reuse. N fresh
water is intr u e int the treatment r ess at NAL.
Envir nmental Lea ershi
ver the ast year, Say na has em nstrate envir nmental
lea ershi n an in ivi ual an lle tive level. Say na has a te
numer us li ies t etter f rmalise its ra ti es an ensure
effe tive envir nmental mana ement an r te ti n.
Say na's envir nmental re rt ar is ase n ei ht r t ls
esta lishe y the Minin Ass iati n f ana a f r the TSM
initiative. These r t ls ui e Say na in evel in mana ement
systems an m lyin with vari us re uirements t meet the
mmitments in the TSM ui in rin i les.
A ti ns an Key F us Areas
S me f the key a ti ns un ertaken y Say na ver the ast year
in lu e:
ar n Se uestrati n Pr je t
Say na is lla ratin with the r u ement f restier ératif
A iti i an the érative e s li arité e Pik an t re u e its
ar n f t rint.
In 2023, m re than 38,000 trees have een lante in Villem ntel, in
A iti i, t ffset ar n emissi ns fr m ur erati ns ver the ast
tw years. This ar n se uestrati n r je t is als an e l i al
enhan ement initiative, rimarily ue t iversifie lantin f r the
real f rest.
Envir nmental Inn vati n Pr je t
Say na has initiate a r je t in artnershi with Ram , the Université
u ué e en A iti i-Témis amin ue (U AT) an the Institut e
re her he en i l ie vé étale e M ntréal t reate a filterin
lantati n f fast- r win little tree will ws.
The will ws, whi h will e su je te t re ise irri ati n f effluents
usin the inn vative Eva lant te hn l y, will all w f r the re very
an re u ti n f the v lume f minin water is har e int the
envir nment fr m NAL, while reatin i mass that an e use in the
rest rati n an reha ilitati n r ess.
ther key f us areas f r Say na in lu e:
–
–
–
–
–
–
–
–
ntinuati n f aseline stu ies in relati n t the
Envir nmental an S ial Im a t Assessment (ESIA) f r
M lan;
evel ment f reenh use as ( H ) emissi ns
re u ti n strate y f r NAL;
evel ment f r un an surfa e water m nit rin
r ram f r NAL;
evel ment f r je t exe uti n an elivery hil s hy
f r M lan, in r ratin existin est ra ti es an
te hn l ies in relati n t mine evel ment;
enhan ement f tailin s mana ement an emer en y
re are ness system f r NAL;
esta lishment f i iversity nservati n lan f r NAL;
r ressi n f BAPE assessment f r Authier;
r ressi n f im a t assessment an nsultati n
r ess f r Authier an M lan.
Sayona | Annual Report 2023 39
Sustainability
Social Responsibility
Say na is mmitte t makin a meanin ful ntri uti n t e le's
lives y reatin lastin s ial, envir nmental an e n mi value.
We listen t ur stakeh l ers an w rk t ether t reate share
value.
ur Relati nshi s with First Nati ns
The su rt an trust f First Nati ns e le is riti al t the
sustaina ility f ur usiness. ver the ast year, Say na has
ntinue t stren then its relati nshi s with First Nati ns e le
ase n trans aren y an mutual lla rati n.
Say na lans its en a ements with First Nati ns e le well in
a van e t ensure their views are in r rate int r je t lans. This
all ws Say na t a t as a true artner. These nstru tive, res e tful
an en is ussi ns are entre ar un evel in sustaina le
artnershi s that r m te em l yment rtunities an eliver
e n mi enefits f r l al mmunities.
As art f this r ess, Say na is lannin t initiate several r je ts
t eliver enefits t the ree mmunities f ujé-B u um u an
Mistissini.
Say na is mmitte t uil in a a ility y in lu in First Nati ns
e le in all r esses. The m any a tively seeks t re ruit
em l yees fr m In i en us mmunities, an r m tes usinesses
wh artner with In i en us enter rises.
ur Relati nshi s with H st mmunities
Say na seeks t esta lish meanin ful l n -term relati nshi s whi h
res e t l al ultures an reate lastin enefits.
The m any en a es re ularly an trans arently a ut u min
a tivities, there y all win the mmunity t e m re a tively
inv lve in its r je ts. Say na als w rks with mmunities t
i entify h w it an im r ve its minin r je ts, an whi h
transf rmative r je ts an e evel e t ether t reate a r u
le a y f r l al mmunities.
In Se tem er 2022, Say na visite the h st mmunities near its
r je ts in A iti i-Témis amin ue, in lu in the muni i alities f
Am s, Barraute, La rne, Laf r e, La M tte, M ffet, Preissa , Saint-
Mar - e-Fi uery an Saint-Mathieu- 'Harri ana.
The en h use events, whi h were wel me y the mmunities,
were an rtunity t hear a variety f ers e tives an re eive
nstru tive fee a k fr m l al resi ents. They als r vi e an
rtunity f r atten ees fr m Say na an the l al mmunity t
is uss ways t im r ve the r je ts.
In 4 FY23, further meetin s were hel t is uss ways t - reate
an timise the r je ts in the re i n.
40
Operating
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Governance
Financial
Report
Additional
Information
M nit rin mmittees
Say na has esta lishe m nit rin mmittees whi h all w l al
mmunity ex e tati ns, n erns an su esti ns t e hear ,
there y ena lin ur r je ts t fit int their envir nment m re
seamlessly. The is ussi ns hel thr u h the m nit rin
mmittees als ena le l al kn wle e t e in lu e in the
r je t's esi n an evel ment s that it an e etter a a te t
the l al ntext.
The je tives f the m nit rin mmittees are:
70.9Mt @ 1.5% Li O2
1) is uss the r ress f the r je t an a tivities relate t
site erati ns;
2)
Esta lish en an trans arent ial ue etween Say na
an m nit rin mmittee mem ers;
3) Pr m te the sharin f l al kn wle e an inf rmati n as
well as s ientifi kn wle e am n l al a t rs, the
m any an external ex erts;
4)
En ura e mmuni ati n f any new n erns serve
in the area an , where a r riate, r vi e a vi e n
tential next ste s;
5) Maximise the tan i le enefits f the r je t f r the
mmunity, en ura e the arti i ati n f l al
usinesses, an ntri ute t the reati n f Say na's
s ial mmitment r ram.
The N rth Ameri an Lithium M nit rin mmittee was initiate t
m ly with the Minin A t, while the Authier Lithium M nit rin
mmittee was esta lishe in a van e f the r je t, with ut any
le al li ati n t s .
In late 2022, mem ers f the Authier Lithium an N rth Ameri an
Lithium M nit rin mmittees e i e t j in f r es t ain
ali nment n vari us issues that affe te th mmittees.
mmittee mem ers have een ke t a reast n the r ress f
Say na's r je ts thr u h a series f meetin s an resentati ns. T
ate, is ussi ns have vere a ran e f t i s in lu in :
–
–
–
–
–
–
–
–
–
–
enefits f a uirin NAL an mer in with the Authier
Lithium Pr je t;
a ti n lan t e me the su lier f h i e t in ustry in
N rth Ameri a;
urrent an future ste s f r restart f erati ns at NAL;
amen ments t e ta le f r the Authier Lithium Pr je t;
BAPE hearin f r the Authier Lithium Pr je t;
envir nmental u ra in ;
h usin issues;
ermit m lian e;
sustaina le evel ment;
n in la ur re uirements.
Sayona |
Annual Report 2023
41
Sustainability
42
nstant Presen e
urin the year, Say na was a tively inv lve in numer us events
thr u h ut ue e an ntari in ana a as well as atten in
vari us nferen es an ther in ustry events in N rth Ameri a,
Eur e an Asia Pa ifi re i ns.
These events have een im rtant f r Say na t share its r je ts,
sh w ase its ex ertise, meet with key in ustry fi ures, an netw rk
with r s e tive em l yees an usiness artners. They have als
hel e t uil str n relati nshi s with key stakeh l ers inv lve in
evel in inn vative an sustaina le te hn l ies an s luti ns f r
the minin in ustry.
Finan ial ntri uti ns
Say na has evel e a nati n an S ns rshi P li y whi h
utlines the un erlyin rin i les f r finan ial ntri uti ns. The
m any aims t arti i ate in im a tful r je ts that are a s ur e f
ri e f r its h st mmunities. We als aim t ntri ute t the
sustaina le evel ment f the mmunities near ur erati ns, as
well as r je ts that enefit In i en us mmunities.
Say na's je tives in r vi in nati ns an s ns rshi s are:
–
–
–
–
r vi e finan ial su rt t r anisati ns wh se r je ts
ali n with ur values;
ntri ute t the s i -e n mi evel ment f l al an
nei h urin mmunities;
remain ali ne an mmitte t the nee s f l al an
First Nati ns mmunities;
em nstrate ur mmitment t e a r rate
itizen.
Investin in Future enerati ns
Thr u h ut the year, Say na h ste stu ents an interns t tea h
them a ut the minin in ustry an all w them t ain ra ti al
ex erien e in the fiel .
A ti ns an Key F us Areas
S me f the key a ti ns un ertaken y Say na ver the ast year
in lu e :
–
–
ntinue su rt f mité Mikis, a mmittee e i ate
t the reservati n f tra iti nal raftsmanshi in the
mmunity f A iti iwinni;
s ns rshi f the Pik an an La Sim n ww ws.
ther key f us areas f r Say na in lu e:
–
–
ntinue nsultati n an lla rati n with m nit rin
mmittees;
f rmati n f e n mi evel ment mmittees with the
mmunities f A iti iwinni, La Sim n, L n P int First
Nati n an the ree Nati n f Mistissini t evel ur
artnershi s.
́
Operating
and Financial
Review
Governance
Financial
Report
Additional
Information
E n mi enefits in ur
h st mmunities
We are mmitte t reatin value f r all stakeh l ers.
With the restart f erati ns at NAL an a van ement f
a tivity n the M lan Lithium Pr je t, Say na is fast
e min a truste artner an em l yer f h i e in the
A iti i-Témis amin ue an Eey u Ist hee James Bay
re i ns. By su rtin an rivin l al e n mi
evel ment, the m any is ensurin these re i ns
rea the e n mi enefits ass iate with ur
erati ns.
Thanks t ur L al Pur hasin P li y, whi h fav urs
s an servi es fr m r anisati ns an usinesses
near its erati ns, Say na has inje te a m ine
$266.9 milli n int the l al e n mies in the A iti i-
Témis amin ue an Eey u Ist hee James Bay re i ns
ver the ast year. This re resents a nsi era le
in rease f r usinesses in these re i ns m are t the
revi us year.
Sayona | Annual Report 2023 43
44
Operating
and Financial
Review
Governance
Financial
Report
Additional
Information
Governance
Board of Directors
Executive Leadership Team
Directors’ Report
Remuneration Report
Auditor’s Independence Declaration
46
48
49
53
61
Sayona |
Annual Report 2023
45
Board of Directors
Mr James Brown
Executive Director and Interim Chief Executive Officer
Mr Allan Buckler
Non-Executive Director
A e
60
L ati n
Sin a re
A e
76
L ati n
Australia
Term f ffi e
Mr Br wn has serve as a N n-Exe utive ire t r sin e 12 Au ust
2013. He was a inte as Exe utive ire t r an Interim hief
Exe utive ffi er n 27 Au ust 2023.
ualifi ati ns
Mr Br wn h l s a ra uate i l ma in Minin fr m University f
Ballarat an is a ra uate f the Australian Institute f m any
ire t rs.
Ex erien e
Mr Br wn is a seni r exe utive with ver 40 years' ex erien e in the
minin in ustry in Australia, Unite States, Afri a an In nesia,
in lu in the last 14 years as Mana in ire t r f M rella
r rati n Limite . Mr Br wn has su essfully s ur e , evel e
an erate numer us key l al r je ts with a f us n lithium
an attery materials. He has an extensive l al investment netw rk
t un er in the a ital re uirements f r r je t investment an
evel ment.
urrent ire t rshi s in ther Liste Entities
Mana in ire t r – M rella r rati n Limite
N n-Exe utive ire t r – reenwin Res ur es Limite
ther ire t rshi s
Nil
F rmer ire t rshi s in the last 3 years
Nil
Term f ffi e
Mr Bu kler was a inte as a N n-Exe utive ire t r n 5 Au ust
2013.
ualifi ati ns
Mr Bu kler h l s a ertifi ate in Mine Surveyin an Minin , First
lass Mine Mana ers ertifi ate an Mine Survey r ertifi ate fr m
the ueenslan vernment's e artment f Mines.
Ex erien e
Mr Bu kler is a seni r exe utive with ver 55 years' ex erien e in the
minin in ustry an has een ire tly res nsi le f r the
mmer ialisati n f several r je ts fr m res ur e i entifi ati n
thr u h t r u ti n in Australia an In nesia.
urrent ire t rshi s in ther Liste Entities
N n-Exe utive ire t r – M rella r rati n Limite
ther ire t rshi s
Nil
F rmer ire t rshi s in the last 3 years
N n-Exe utive ire t r – Interra Res ur es Limite
46
Operating
and Financial
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Governance
Financial
Report
Additional
Information
Mr Paul Crawford
Executive Director and Chief Financial Officer
Mr Philip Lucas
Non-Executive Director
A e
66
L ati n
Australia
A e
56
L ati n
Australia
Term f ffi e
Mr rawf r was a inte as a ire t r n 10 Mar h 2000.
ualifi ati ns
Mr rawf r h l s a Ba hel r f Business fr m ueenslan
University f Te hn l y an is a ertifie Pra tisin A untant
( PA). He als h l s a ra uate i l ma in Business Law fr m
University f S uthern ueenslan , ra uate i l ma in m any
Se retarial Pra ti e fr m vernan e Institute f Australia an
Master f Finan ial Mana ement fr m entral ueenslan
University.
Ex erien e
Mr rawf r has ver 45 years f mmer ial ex erien e, in lu in
vari us te hni al an mana ement r les within the minerals, al an
etr leum in ustries. In 2001, Mr rawf r esta lishe his wn
r rate nsultan y firm, r vi in a untin , r rate
vernan e, usiness a vis ry an mmer ial mana ement
servi es. Mr rawf r was a inte as m any Se retary in 2012
an has hel the siti n f hief Finan ial ffi er sin e 2018.
urrent ire t rshi s in ther Liste Entities
Nil
ther ire t rshi s
Nil
F rmer ire t rshi s in the last 3 years
Nil
Term f ffi e
Mr Lu as was a inte as a N n-Exe utive ire t r n 27 Au ust
2023.
ualifi ati ns
Mr Lu as h l s a Ba hel r f Laws an Juris t r fr m University
f Western Australia.
Ex erien e
Mr Lu as is Partner an hairman at uti ue r rate an
res ur es law firm, Alli n Partners. He has extensive kn wle e f the
Australian r rate an res ur es se t rs. He als r vi es a vi e
re minantly in the areas f u li m any mer ers an
a uisiti ns, e uity a ital markets, r rate vernan e an
r rate law.
urrent ire t rshi s in ther Liste Entities
hair – hilwa Minerals Limite
ther ire t rshi s
Nil
F rmer ire t rshi s in the last 3 years
Nil
Sayona |
Annual Report 2023
47
Executive Leadership Team
Mr James Brown
Executive Director and
Interim Chief Executive Officer
Mr Paul Crawford
Executive Director and
Chief Financial Officer
Mr Guy Belleau
Chief
Executive
Sayona Canada
Officer,
A e
60
L ati n
Sin a re
A e
66
L ati n
Australia
A e
55
L ati n
ana a
ualifi ati ns
Mr Br wn h l s a ra uate i l ma in
Minin fr m University f Ballarat an is a
ra uate f the Australian Institute f
m any ire t rs.
Ex erien e
Mr Br wn is a seni r exe utive with ver 40
years' ex erien e in the minin in ustry in
Australia, Unite States, Afri a an In nesia,
in lu in the last 14 years as Mana in
ire t r f M rella r rati n Limite . Mr
Br wn has su essfully s ur e , evel e
an erate numer us key l al r je ts
with a f us n lithium an attery materials.
He has an extensive l al investment
netw rk t un er in the a ital re uirements
f r r je t investment an evel ment.
ualifi ati ns
Mr rawf r h l s a Ba hel r f Business
fr m ueenslan University f Te hn l y
an is a ertifie Pra tisin A untant
( PA). He als h l s a ra uate i l ma in
Business Law fr m University f S uthern
ueenslan , ra uate i l ma in m any
Se retarial Pra ti e fr m vernan e
Institute f Australia an Master f Finan ial
Mana ement fr m entral ueenslan
University.
Ex erien e
Mr rawf r has ver 45 years f mmer ial
ex erien e, in lu in vari us te hni al an
mana ement r les within the minerals, al
an etr leum in ustries. In 2001, Mr
rawf r esta lishe his wn r rate
nsultan y firm, r vi in a untin ,
r rate vernan e, usiness a vis ry an
mmer ial mana ement servi es. Mr
rawf r was a inte as m any
Se retary in 2012 an has hel the siti n f
hief Finan ial ffi er sin e 2018.
ualifi ati ns
Mr Belleau h l s a Ba hel r f En ineerin
fr m Laval University.
Ex erien e
Mr Belleau was a inte t the r le f hief
Exe utive ffi er, Say na ana a in January
2023, assumin res nsi ility f r all
erati nal an ex l rati n a tivities in
ana a.
Mr Belleau is a seni r exe utive with ver 30
years' ex erien e in the minin in ustry,
re minantly in s me f the lar est minin
m anies in ué e an ana a. Pri r t
j inin Say na, Mr Belleau hel the siti ns
f erati ns Mana er f r Ar el rMittal
Mines ana a, eneral Mana er f Minin
f r Fal Res ur es an eneral Mana er f
Minin f r l r 's Élé n re mine, where
he versaw every sta e f mine nstru ti n
an erati n.
Mr Belleau als hel the siti n f hair f
the Nati nal Minin Institute f ué e
(INM ) fr m 2018 t 2022.
48
Operating
and Financial
Review
Governance
Financial
Report
Additional
Information
Directors’ Report
Your Directors present their report on Sayona Mining Limited ("the
Company") and its controlled entities (the "Consolidated Group" or
"Group") for the year ended 30 June 2023.
ongoing identification, evaluation and development of its portfolio
of mineral exploration assets
in Australia and Canada,
predominantly focusing on lithium.
The report is prepared in accordance with the requirements of the
Corporations Act, with the following information forming part of this
report:
During the year, the Group completed the refurbishment, upgrade
and restart of operations at NAL in conjunction with its strategic
partner, Piedmont Lithium Québec Holdings Inc.
–
–
–
–
–
–
Operating and Financial Review on pages 8 to 43;
Biographical Information on pages 46 to 48;
Remuneration Report on pages 53 to 60;
Auditor’s Independence Declaration on page 61;
Financial Report on pages 62 to 102; and
Additional Information on pages 104 to 141.
Directors
The following persons held office as a Director of Sayona Mining
Limited during the financial year and up to the date of this report,
unless otherwise stated:
Mr James Brown
Appointed 12 August 2013
(1)
Mr Allan Buckler
Appointed 5 August 2013
Mr Paul Crawford
Appointed 10 March 2000
Mr Philip Lucas
Appointed 27 August 2023
Mr Brett Lynch
Appointed 1 July 2019; resigned 27 August 2023
(2)
(1)
(2)
Mr Brown served as a Non-Executive Director until 26 August 2023. He was
appointed as Executive Director and Interim Chief Executive Officer on 27
August 2023.
Mr Lynch resigned as Managing Director and Chief Executive Officer on 27
August 2023.
Further information on the Directors’ qualifications, experience and
other directorships are set out in this report on pages 46 to 47.
Meetings of Directors
During the year, there were a total of 14 meetings of the full Board
of Directors. The number of meetings attended by each Director
were:
Director
J Brown
A Buckler
P Crawford
(3)
P Lucas
B Lynch
Board Meetings
Eligible
(1)
Attended
(2)
14
14
14
-
14
14
14
14
-
14
(1)
(2)
(3)
Number of meetings held during the year while the Director was a member of
the Board.
Number of meetings attended during the year while the Director was a
member of the Board.
Mr Lucas was appointed as a Non-Executive Director on 27 August 2023.
The Group did not have an audit committee in place at the date of
this report. At present, the Non-Executive Directors have assumed
the responsibilities of the audit committee. The Board is currently
reviewing its corporate governance practices and will establish key
governance committees as part of this process.
Principal Activities
The principal activities of the Group during the year were lithium
mining and processing at North American Lithium (NAL) and
The restart of operations was completed on time, culminating in
first spodumene concentrate production in March 2023 as part of
the commissioning process. The first shipment of 19,200 dry metric
tonnes of concentrate took place in August 2023.
There were no other significant changes in the Group’s principal
activities during the year.
Significant Changes in the State of Affairs
On 5 August 2022, the Group announced an agreement with Acuity
Capital to increase the At-the-Market Subscription Agreement
(ATM) facility limit from $50 million to $200 million and extend the
expiry date to 31 July 2025. The remaining standby equity capital
available under the ATM is $193.6 million. Under the agreement,
Sayona issued a further 155 million shares in November 2022 as
collateral against the facility, bringing the total security held by
Acuity Capital to 250 million shares. These shares were issued at no
cost and are similar to treasury shares.
On 2 September 2022, the S&P Dow Jones Indices announced the
September 2022 quarterly rebalance of the S&P/ASX indices,
resulting in Sayona Mining Limited being included in the S&P/ASX
200 Index prior to the market opening on 19 September 2022.
On 14 November 2022, the Group announced an agreement with
Consolidated Lithium Metals Inc. (CLM) for NAL to acquire a 9.99%
interest in CLM for C$1.5 million. As part of the agreement, NAL
acquired 20 claims adjacent to the NAL operation with a further 28
claims part of the Vallée Lithium Project, subject to an earn-in
agreement.
On 17 November 2022, the Group announced an agreement with
Troilus Gold Corporation to acquire 1,824 claims located near the
Moblan Lithium Project for a purchase consideration of $44.5
million. Pursuant to this agreement, the Group issued 184,331,797
fully paid ordinary shares to Troilus Gold Corporation to settle the
transaction. The Group also acquired a 9.26% interest in Troilus Gold
Corporation.
On 7 March 2023, the Group entered into a subscription agreement
with PearTree Securities Inc. for the issuance of 174,459,177 fully
paid ordinary shares at an issue price of $0.315 per share for
aggregate gross proceeds of $54.9 million using the flow-through-
share (FTS) provisions under Canadian tax law. The funds from the
placement will be used primarily to accelerate exploration efforts at
NAL and Moblan.
On 5 June 2023, the Group completed the first tranche of a $200
million placement to institutional, professional and sophisticated
investors, resulting in the issuance of 940,384,891 fully paid
ordinary shares at an issue price of $0.18 per share for aggregate
gross proceeds of $169.3 million. The second tranche totalling
$30.7 million was completed on 19 July 2023.
There were no other significant changes in the Group’s state of
affairs during the year.
OPERATING AND FINANCIAL REVIEW
Operating Review
The Group’s operations during the year ended 30 June 2023 have
been focused on the development of its lithium assets in Québec
and working to realise value from its lithium and gold tenements in
Western Australia. The Operating and Financial Review includes,
Sayona | Annual Report 2023
49
Directors’ Report
where possible, likely developments and expected results from the
Group’s operations in future financial years.
QUÉBEC, CANADA
North American Lithium (NAL)
During the year, Sayona’s primary focus was the restart of
spodumene concentrate production at NAL. The
restart
commenced on time in Q3 FY23 and culminated in the first
spodumene concentrate production in March 2023 as part of the
commissioning process. The first shipment of 19,200 dry metric
tonnes of concentrate took place in August 2023, subsequent to
period end.
The first full quarter of operations was achieved in Q4 FY23. The
average spodumene concentrate grade achieved was in line with
targeted grades, with all key spodumene concentrate parameters in
line with offtake specifications. For the full financial year, NAL
recorded 33,120 tonnes of spodumene concentrate production.
The current Life of Mine (LOM) has been estimated at 20 years,
however Sayona is advancing a 50,000 metre drilling program for
NAL and the adjacent Vallée Lithium Project to identify additional
resources. The program commenced in Q4 FY23. At 30 June 2023,
31 holes (8,572 metres) had been drilled as part of Phase 1 of the
program.
NAL Definitive Feasibility Study (DFS)
In April 2023, Sayona announced a DFS combining the NAL
operation and Authier Lithium Project. The pre-tax net present value
(NPV) of the project was estimated at $2.2 billion (8% discount rate),
representing a significant increase from the pre-tax NPV of $1 billion
disclosed in the pre-feasibility study.
The operation is expected to generate estimated total net revenue
of $7.6 billion with an EBITDA of $3.7 billion, based on life-of-mine
annual average concentrate production of 190,000 tonnes,
supporting an after-tax Internal Rate of Return of 2,545%. This
clearly demonstrates the Abitibi-Témiscamingue lithium hub’s long‐
term financial and technical viability.
NAL Preliminary Carbonate Technical Study
In June 2023, Sayona announced the results of a preliminary
carbonate technical study for NAL, confirming the benefits of
moving into downstream processing. Study highlights included an
estimated pre‐tax NPV (8% discount) of $3.2 billion and pre‐tax
internal rate of return of 60%, with the project expected to generate
an estimated EBITDA of $7.5 billion over the 16‐year life of the
carbonate plant. The pre-tax NPV of fully integrated downstream
operations at NAL is now estimated at $5.4 billion, including the NAL
DFS.
Sayona and Piedmont will work with technical advisers to undertake
a further trade-off study of lithium carbonate versus lithium
hydroxide production at NAL, with a definitive technical study to
follow for release in 2024.
Authier Lithium Project
Sayona continues to advance regulatory approvals for the project.
With the commissioning of the NAL facility, the approval will be
based on a much smaller environmental footprint, with no
requirement for a concentrator on-site.
‘BAPE’
In November 2022, Sayona submitted the Authier project for
environmental impact assessment and review under the Québec
Government’s
(Bureau d’audiences publiques sur
l’environnement) process, demonstrating the Group’s commitment
to transparency and stakeholder engagement. The request was
accepted by the Québec Government in February 2023. A revised
Environmental and Social Impact Assessment for the project will be
produced by December 2023.
50
Tansim Lithium Project
Sayona is focused on ensuring the project generates maximum
benefits for all local stakeholders, including First Nations people,
together with minimising any environmental impacts. No work was
carried out at Tansim during the period as activities focused on NAL
and Moblan.
Vallée Lithium Project
In November 2022, Sayona announced a strategic acquisition and
earn‐in between NAL and Consolidated Lithium Metals Inc. at CLM’s
Vallée Lithium Project. The acquisition and earn-in by NAL
comprised 48 claims spanning approximately 1,997 hectares,
located adjacent to the NAL operation.
Key aspects of the transaction include the acquisition of 20 claims
outright and the right to earn up to a 51% stake in an additional 28
claims, based on spending and funding milestones. The 20 claims
acquired outright span 755 hectares, providing an immediate
extension to the NAL operating area and allowing for potential
future infrastructure expansion at the NAL mine and its processing
facility. Pegmatite targets are located close to and along strike from
the NAL ore body.
The Group also acquired a 9.99% interest in CLM for approximately
C$1.5 million.
In May 2023, a drilling program commenced over the Vallée Lithium
Project and adjacent NAL claims. Of the 50,000 metres of planned
drilling, approximately 15,000 metres relates to the Vallée Lithium
Project claims.
Moblan Lithium Project
During the year, Sayona announced a significant resource upgrade
for the Moblan Lithium Project with an initial JORC Mineral Resource
estimate, including a maiden resource for the South Pegmatite
discovery.
Sayona now estimates a total JORC Measured, Indicated and
Inferred Resource of 70.9 million tonnes at 1.15% Li2O (0.25% Li2O
cut‐off grade in the sensitivity analysis), representing one of North
America’s single largest lithium resources. This estimate includes
higher grade tonnage opportunities with a Measured, Indicated and
Inferred Resource of 51.4 million tonnes at 1.31% Li2O (0.55% Li2O
cut-off grade in the sensitivity analysis).
Sayona aims to further enhance the size and grade of this resource
through additional drilling, with a total of 60,000 metres of drilling
planned in what is likely to be one of the largest single drilling
programs in Québec for 2023.
At 30 June 2023, a total of 163 holes totalling 33,757 metres had
been drilled. Following the announcement of initial high grade
drilling results at Moblan in July 2023, subsequent to period end,
Sayona will proceed directly to a DFS, expected to be released by the
end of 2023. The study will examine the development of a mine and
concentrator north of Chibougamau, near the Route du Nord in Cree
Mistissini territory, with the Moblan Lithium Project serving as the
centre of the Eeyou Istchee James Bay Hub, including the Lac Albert
Lithium Project.
Lac Albert Lithium Project
In January 2022, Sayona announced the acquisition of 121 new
claims in the vicinity of Moblan known as the Lac Albert Lithium
Project. Located 3.5km west of the Moblan Lithium Project, in the
same proven lithium mining province, the new claims span 6,592
hectares and will be assessed for lithium pegmatite occurrences.
These claims are separate to the Moblan Lithium Project. No
activities were undertaken at the Lac Albert Lithium Project during
the period.
Operating
and Financial
Review
Governance
Financial
Report
Additional
Information
Directors’ Report
Troilus Claims
In November 2022, Sayona announced the acquisition of a 100%
interest
in 1,824 claims from Troilus Gold Corporation for
approximately $44.5 million. These claims were acquired through
an issue of 184,331,797 fully paid ordinary shares in Sayona Mining
Limited.
At 30 June 2023, the Group’s consolidated financial position
comprises total assets of $1,009.6 million (2022: $661.2 million),
total liabilities of $124.8 million (2022: $100.5 million) and net
assets of $884.8 million (2022: $560.6 million). The Group reported
cash and cash equivalents of $211.1 million (2022: $184.6 million)
as at 30 June 2023.
The Group also acquired a 9.26% equity interest in Troilus Gold
Corporation by subscribing for 20.4 million shares at C$0.49 per
share. These claims are separate to the Moblan Lithium Project. No
activities were undertaken during the period.
WESTERN AUSTRALIA, AUSTRALIA
LITHIUM EXPLORATION
Morella Lithium Joint Venture Project (Morella 51% / Sayona 49%)
Morella Corporation Limited (ASX: 1MC) earned a 51% stake in the
joint venture, having satisfied its requirements under the Earn-in
Agreement by incurring expenditure of $1.5 million on exploration
within three years.
During the period, a 35-hole drilling program for 2,200 metres was
undertaken at the Mallina tenement over the Discovery, Area C and
Eastern Pegmatite No. 2 and 3 prospect areas.
Subsequent to the end of FY23, Morella announced that drilling
results had identified new areas of mineralisation and extensions to
existing mineralised zones.
The nature of the numerous pegmatite bodies identified within the
Mallina project suggests the strong possibility of additional lithium
discoveries beyond the currently explored area. Planned future work
includes additional drilling to further develop the
identified
mineralisation, as well as additional geochemical and geophysical
surface techniques.
Tabba Tabba Project
Field work and heritage surveying has advanced drill planning over
targets in the south of the lease and southern strike extension to the
Tabba Tantalum Mine pegmatite corridor. Drilling is planned to test
for potential spodumene rich zonation to the south of the mined
tantalum rich pegmatite system.
GOLD EXPLORATION
Mt Dove Project
A heritage survey was completed during the year over areas where a
3,500 metre air-core / reverse circulation drill program has been
planned to test magnetic features and structural targets for bedrock
gold anomalism.
Drilling activity will proceed once the final survey report has been
delivered. The Mt Dove Project is proximal to De Grey Mining’s Hemi
discovery.
Deep Well Project
Infill soil sample results have confirmed and extended encouraging
results in the T5 area of the tenement. Further work is planned to
allow targeting for follow up air-core drilling of the geochemical
anomalies, as well as further drill testing of magnetic targets within
the greater Deep Well lease.
Sayona holds 100% of the lithium rights within Deep Well and
exploration is proceeding with an awareness of the lithium potential
of the project area.
Financial Review
The Group’s consolidated loss after income tax for the year ended
30 June 2023 was $12.9 million (2022: $73.8 million profit). The
operating result for the year ended 30 June 2022 included a gain on
acquisition of North American Lithium of $101.7 million.
The Group has various funding options available including the $200
million ATM facility with Acuity Capital. The Group is also constantly
exploring alternative funding options including, but not limited to,
production offtake arrangements, debt facilities, equity placements,
joint arrangements with external partners, farm-out of interests in
exploration tenements or the sale of mineral exploration assets
where value has been created through exploration activity.
The Directors have reasonable grounds to believe the Group is in a
strong financial position to grow its current operations.
Dividends
No dividends were declared or paid during the financial year.
Significant Events After Reporting Date
On 19 July 2023, the Group completed the second tranche of a $200
million placement to institutional, professional and sophisticated
investors, resulting in the issuance of 170,726,221 fully paid
ordinary shares at an issue price of $0.18 per share for aggregate
gross proceeds of $30.7 million.
On 28 August 2023, the Group announced changes to the Board of
Directors following the resignation of Mr Brett Lynch as Managing
Director and Chief Executive Officer. To enable a smooth transition
to new leadership, Mr James Brown was appointed as Executive
Director and Interim Chief Executive Officer, effective 27 August
2023.
In addition, Mr Philip Lucas was appointed as a Non-Executive
Director, effective 27 August 2023. Mr Lucas is an experienced
corporate lawyer with a particular focus on equity capital markets,
mergers and acquisitions, corporate governance and Australian
Securities Exchange regulations and compliance. Mr Lucas is
currently Partner and Chair at boutique corporate and resources law
firm, Allion Partners and serves as Chair of Chilwa Minerals Limited.
On 6 September 2023, the Group announced the receipt of cash
proceeds from the inaugural shipment of spodumene concentrate
from its North American Lithium operation in Québec, Canada. The
initial cash payment marked an important milestone in Sayona’s
evolution from a developer into a leading North American lithium
producer.
No other matters or circumstances have arisen since the end of the
financial year that have significantly affected or may significantly
affect the operations, results of operations or state of affairs of the
Group in subsequent financial years.
External Factors and Risks Affecting the Group’s Results
The Group has robust risk management processes and internal
compliance and control systems in place to address material
business risks.
Notwithstanding, the following risks may affect the Group’s ability
to achieve its objectives:
–
–
–
–
global economic uncertainty and liquidity negatively
impacting the market for lithium;
negative commodity price variations and volatility;
heightened political, social and economic expectations in
respect of climate change and the transition to a low-
carbon economy;
political risks and actions by governments and authorities
including changes in legislation, regulation and policy;
– major external events or natural disasters;
Sayona | Annual Report 2023
51
Directors’ Report
–
–
–
–
–
–
delays or refusal of relevant approvals to conduct
proposed operations;
inability to deliver safe, stable and predictable operational
performance;
inability to secure supply of logistics chains and critical
goods and services;
exploration and evaluation activity not achieving the
expected or desired results;
inflationary
impacts and
fluctuations; and
inability to raise additional funds in the future.
foreign exchange
rate
Directors Interest in Shares and Equity Rights
At the date of this report, the interests of the Directors in the ordinary
shares and equity rights of the Company are as follows:
Director
J Brown
A Buckler
P Crawford
P Lucas
(2)
Ordinary
shares
10,757,094
112,589,051
171,341,303
-
Equity
(1)
rights
-
-
10,000,000
-
(1)
(2)
Equity rights relate to equity awards or options which have been granted.
Equity rights for Mr Crawford have vested due to performance conditions
being achieved and, subject to being exercised, will convert into ordinary
shares.
No equity rights over the ordinary shares of the Company are held
by Non-Executive Directors at the date of this report.
wilful breach of duty in relation to the Group. The contracts include
a prohibition on disclosure of the premium paid and nature of the
liabilities covered under the policy.
Indemnification of Auditors
The Group has not given an indemnity or entered into any agreement
to indemnify, or paid or agreed to pay insurance premiums in respect
of any person who is or has been an auditor of the Group or a related
body corporate during the year and up to the date of this report.
Corporate Governance
The Group’s Corporate Governance Statement is available at
https://sayonamining.com.au/corporate-governance/.
Auditor Independence
The Group’s auditor has provided an independence declaration in
accordance with the Corporations Act, which is set out on page 61
and forms part of this report.
Non-Audit Services
The Group’s auditor did not undertake any non-audit services during
the current or previous financial year.
Proceedings on behalf of Sayona Mining Limited
No person has applied for leave of Court to bring proceedings on
behalf of the Group or intervene in any proceedings to which the
Group is a party for the purpose of taking responsibility on behalf of
the Group for all or any part of those proceedings.
The Group was not a party to any such proceedings during the year.
The total number of equity rights over the ordinary shares of the
Company as at 30 June 2023 is set out in Note 29 to the financial
statements.
Environmental Regulation and Performance
Sayona seeks to be compliant with all applicable environmental
laws and regulations relevant to its operations.
At the date of this report, the total number of equity rights over the
ordinary shares of the Company are as follows:
Number
of equity
rights
Exercise
price
Expiry /
vesting
date
Equity awards
Performance rights
(1)
13,454,794
N/A
Various
Options
Equity-settled services
(2)
2,234,482 $0.1825 28-Nov-25
Performance rights
(3)
10,000,000 $0.1500 17-Jul-24
(1)
(2)
(3)
Performance rights relate to equity awards granted to employees for nil
consideration, subject to performance conditions being met. Refer to Note 29
to the financial statements for further detail on the outstanding equity
awards.
Equity-settled services relate to options granted to Jett Capital Advisors, LLC
in respect of corporate advisory services undertaken for the Group.
Performance rights relate to options granted to Mr Paul Crawford, as
approved by shareholders at the Extraordinary General Meeting on 17 July
2023. All rights have vested due to performance conditions being achieved
and, subject to being exercised, will convert into ordinary shares.
Equity right holders do not have any right to participate in any issue
of shares or other interests of the Group or any other entity.
Company Secretary
Mr Paul Crawford was appointed to the position of Company
Secretary on 22 August 2012. Further information on Mr Crawford’s
qualifications and experience is set out on page 47.
Indemnification of Directors
During the year, the Group paid insurance premiums to indemnify
each of the Directors against liabilities incurred in defending any
legal proceedings arising as a result of work performed in their
capacity as Director of the Group, other than conduct involving a
52
The Group’s operations are subject to environmental regulation
under the law in Australia and Canada. The Directors monitor the
Group’s compliance with environmental regulation under law in
relation to its exploration, mining, and processing activities. In
addition, the Group is presently developing comprehensive ESG
policies and guidelines to ensure that environmental sustainability
is a key factor in managing its operations.
The Group holds all necessary approvals to undertake mining,
processing and construction activities at its North American
Lithium operation. Technical studies prepared in relation to the
restart of operations at NAL and development of Moblan provide
Directors with information and technical details in relation to the
environmental
to mining and
manufacturing operations.
regulations as
they apply
In addition, the Authier Lithium Project is subject to review
procedures under the BAPE (Bureau d'audiences publiques sur
l'environnement) as the Group seeks permitting approval to develop
and operate a new mine. The Moblan Lithium Project will be
evaluated by the Environmental and Social
Impact Review
Committee (COMEX) as the Group seeks to obtain environmental
permits required to develop a new mine.
The Directors are aware of non-compliance currently under
investigation in Canada. The outcome is unknown up to the date of
this report.
Rounding of Amounts
Sayona Mining Limited is an entity to which Australian Securities
and Investments Commission Corporations (Rounding in Financial
/Directors’ Reports)
Instrument
2016/191) applies. Amounts in this Directors’ Report and financial
statements have been rounded to the nearest thousand dollars in
accordance with ASIC Instrument 2016/191, unless otherwise
stated.
Instrument 2016/191
(ASIC
Remuneration Report
The Board is pleased to present the Remuneration Report for the
year ended 30 June 2023 (FY23).
Our Performance
the
transformative year
Sayona enjoyed a
commencement of spodumene (lithium) concentrate production at
the North American Lithium (NAL) operation marking an important
milestone in the Group’s evolution from a developer into a producer.
in FY23, with
The first shipment of spodumene concentrate took place in August
2023, subsequent to period end. Consequently, Sayona is well
positioned to generate additional cash flow as NAL ramps up
production.
A Definitive Feasibility Study (DFS) for the combined NAL and
Authier Lithium Project was also completed during the year,
confirming a pre-tax net present value (NPV) of $2.2 billion for the
project, representing a significant increase from the pre-tax NPV of
$1 billion disclosed in the pre-feasibility study. A preliminary
technical study for lithium carbonate production at NAL showed an
estimated standalone pre-tax NPV of $3.2 billion, with the combined
NAL pre-tax NPV of fully
integrated downstream operations
estimated to exceed $5 billion.
In the Eeyou Istchee James Bay Hub, Sayona’s Moblan Lithium
Project saw a significant increase in its estimated mineral resource
following extensive drilling. The JORC Measured, Indicated and
Inferred Resource of 51.4 million tonnes @ 1.31% Li2O (0.55% Li2O
in the sensitivity analysis) represents one of North America’s single
largest lithium resources.
Meanwhile, in Western Australia, exploration activity progressed
over tenements prospective for gold and lithium in the Pilbara
region, including the joint venture project with Morella Corporation
Limited.
Executive Remuneration
From
its origins as a mineral explorer, Sayona’s executive
remuneration has been cash conservative and low relative to peers.
In FY23, as cash-generating projects neared completion and the
business continued its progress towards becoming a leading North
American lithium producer, the Group expanded its executive
leadership team and increased executive salaries to ensure better
internal and external equity.
Salaries for the Managing Director and Chief Executive Officer (CEO)
and Chief Financial Officer (CFO) were increased by 109% and 22%
respectively, although their salaries are still below market median
levels. Recent executive appointments, including Mr Guy Belleau as
Chief Executive Officer, Sayona Canada (CEO, Canada) on 1 January
2023, have more market competitive remuneration packages in
place.
Short-term
incentives (STI) have been designed to reward
executives and employees for achievement of performance goals
that are aligned to the Group’s near-term objectives. In FY23, STI
outcomes were determined by reference to four measures deemed
critical in transitioning Sayona to the next phase of growth. These
performance measures were based on delivery of safe and reliable
operations, achievement of key project milestones and completion
of key strategic initiatives.
In FY23, all STI performance targets were met or exceeded, resulting
in a maximum STI of 100% being awarded to executives. Given the
need to transition to a more market competitive remuneration
framework, the Board approved to pay the STI in cash. No discretion
was warranted as formulaic STI results were consistent with market
expectations and disclosures, and Total Shareholder Return (TSR)
increased by 17% over the performance period despite a decline in
lithium prices from the start of the financial year.
Operating
and Financial
Review
Governance
Financial
Report
Additional
Information
No long-term incentives (LTI) or other equity grants were made to
Executive Directors in FY23. The final tranche of the equity grant to
the CEO, which was approved by shareholders in November 2019
and contingent on share price growth targets over three years, was
in November 2022. On 17 July 2023,
issued and vested
shareholders approved equity grants to the CEO and CFO in respect
of past performance. As performance related to current and prior
service periods, the value of these equity grants has been disclosed
in the remuneration tables in this report.
Non-Executive Director Remuneration
Board fees were reviewed and benchmarked against industry and
ASX peer data, taking into consideration the change in size and
complexity of the business. In FY23, the Board approved a 74%
increase
increase was
in Non-Executive Director fees. This
levels,
necessary to position fees closer to market median
particularly as the Group seeks to recruit additional independent
Non-Executive Directors.
Looking Forward
During FY23, Sayona progressed plans to undertake a review of its
corporate governance practices, with efforts underway to recruit an
independent Chairman and additional independent Non-Executive
Directors based in Australia and North America. The Board also
engaged an independent remuneration adviser to review the
remuneration practices and performance-based structures of the
Board and executive leadership team. Consequently, Sayona will be
seeking shareholder approval for FY24 equity grants for Executive
Directors and an increase in the maximum aggregate fee pool for
Non-Executive Directors.
Sayona | Annual Report 2023
53
Remuneration Report
Remuneration Report (Audited)
The Remuneration Report forms part of the Directors’ Report for the year ended 30 June 2023 and has been prepared in accordance with section
300A of the Corporations Act 2001.
1. Summary of Key Elements
The following table summarises the key elements of the Remuneration Report:
Element
Summary
FY23 Salary
Adjustments
Base salary changes:
•
•
Managing Director and Chief Executive Officer’s (CEO) base salary was increased by 109%
from $322,500 to $672,500.
Executive Director and Chief Financial Officer’s (CFO) base salary was increased by 22% from
$285,741 to $347,500.
Reference
Section 4.1
Historically, Sayona’s executive remuneration has been low relative to peers in order to conserve cash
used to fund project development and operations. As cash-generating projects neared completion,
salary increases were necessary to ensure reasonable internal equity with non-KMP executives, and to
bring executive remuneration closer to market median levels.
The following table summarises findings of a CEO market review. Peers were selected from Australian
Securities Exchange (ASX) listed mining companies, including lithium producers. The CEO and CFO
remuneration remain below median levels.
Base
salary
(n=21)
$
935,166
585,900
822,500
Maximum remuneration
Fixed
(n=21)
$
978,091
614,807
850,000
STI
(n=19)
$
916,205
369,000
510,000
1,256,100
1,256,100
1,428,050
672,500
700,000
280,000
Average
25th Percentile
50th Percentile
75th Percentile
B Lynch
Percentile Rank
37
36
9
Percentiles are calculated independently.
Fixed and STI
(n=20)
Market
capitalisation
$
1,828,504
1,025,181
1,270,079
2,672,925
980,000
20
$M
4,034
619
1,932
6,180
1,813
43
FY23 Board
Member Fee
Adjustments
FY23 STI
Outcomes
The Chief Executive Officer, Sayona Canada’s (CEO, Canada) base salary did not change since his
appointment as Executive KMP in January 2023.
Board member fees were increased by 74% from $72,000 to $125,000.
Section 6
The fee increase was necessary as the Group seeks to recruit additional independent Non-Executive
Directors, and to bring Board member fees closer to market median levels.
Four performance measures were set for Executive KMP based on delivery of safe and reliable
operations, achievement of key project milestones and completion of key strategic initiatives. The
measures were critical in transforming Sayona into a leading North American lithium producer whilst
also positioning the Group for broader geographic supply and market diversity. The performance
measures were:
•
•
•
•
Total Recordable Injury Frequency Rate (TRIFR) of 5.0 (or less) for the year ended 30 June
2023;
Concentrator at NAL to be operating at a feed rate of 3,800 tonnes per day by 30 June 2023;
NAL refurbishment and restart to be completed on time and within budget (including any
variances approved by the Board);
Announcement of JORC compliant Mineral Resource / Ore Reserve estimate for the Moblan
Lithium Project to the Australian Securities Exchange (ASX).
All performance measures were successfully achieved, resulting in a FY23 STI award of 100%. The Board
approved to pay the STI in cash.
Section 5.2
Why wasn’t STI
partly deferred
into equity?
Executive base salaries and other statutory entitlements have been cash conservative and low relative
to peers. The FY23 STI award is paid in cash to compensate executives for the absence of cash salary
relative to peers.
Discretion
Formulaic STI results associated with testing and achievement of milestones (when referenced to
disclosures and market expectations, lithium prices and growth in TSR) indicated that no discretion
regarding STI payments was necessary.
Section 4.1
and 4.2
Section 4.2
and 5.2
54
Operating
and Financial
Review
Governance
Financial
Report
Additional
Information
Remuneration Report
Element
Why wasn’t LTI
granted in FY23
to Executive
Directors?
Planned
Remuneration
Framework
Changes
Summary
To attract and retain executives and focus executives on longer term value accretive strategies, an LTI
should have been granted. In common with other mineral exploration companies, Sayona’s equity grant
practices have been irregular and sometimes retrospective. The Group acknowledges that these past
practices have not kept pace with our rapid maturation from a mineral explorer to a mid-tier developer
and producer. The Board is currently reviewing the remuneration framework with the aim of approving a
framework which is aligned with shareholder expectations.
Reference
Section 3 and
4.3
During FY23, the Board engaged an independent remuneration advisor to review the remuneration
practices and performance-based structures of the Board and executive leadership team.
Section 8
Some of the planned remuneration framework changes include:
•
•
•
•
•
partial deferral of short-term incentive awards to equity for Executive KMP;
annual grant of long-term incentive awards to Executive KMP, subject to specific performance
conditions and a minimum performance period of three years;
introduction of malus and clawback provisions;
increase in maximum aggregate fee pool for Non-Executive Directors in anticipation of
additional Non-Executive Director appointments;
introduction of minimum shareholding requirements.
2. Key Management Personnel
Key Management Personnel (KMP) comprise those persons that have responsibility, authority and accountability for planning, directing and
controlling the activities of the Company, directly or indirectly, including any director of the Company.
The following table specifies the KMP for the year ended 30 June 2023, unless otherwise stated:
Name
Position
(1)
Executive KMP
B Lynch
P Crawford
G Belleau
Non-Executive Directors
(2)
J Brown
A Buckler
Managing Director and Chief Executive Officer (CEO)
Executive Director and Chief Financial Officer (CFO)
Chief Executive Officer, Sayona Canada (CEO, Canada)
Non-Executive Director
Non-Executive Director
(1)
(2)
Mr Lynch resigned as Managing Director and Chief Executive Officer on 27 August 2023.
Mr Brown appointed as Executive Director and Interim Chief Executive Officer on 27 August 2023.
In this report, a reference to “Executive” or “Executives” is a reference to Executive KMP.
3. Remuneration Strategy
Date appointed
1 July 2019
10 March 2000
1 January 2023
12 August 2013
5 August 2013
Over the last twelve months, Sayona has evolved from a developer into a leading North American lithium producer. Historically, Sayona’s executive
remuneration philosophy has been focused on conserving cash to fund project exploration, development and operations. Executive base salaries
and other statutory entitlements have been cash conservative and low relative to peers, and equity grant practices have been irregular and
sometimes retrospective. The Group acknowledges that these past practices are no longer appropriate, and is taking steps to implement a more
traditional, fit-for-purpose, and steady state remuneration structure from FY24.
4. FY23 Executive Remuneration Framework
4.1 Base Salary
The following table summarises the base salary received by Executive KMP:
Element
Base Salary
Levels
Description
The base salary for each Executive KMP is:
Executive KMP
Position
B Lynch
P Crawford
G Belleau (2)
Managing Director and Chief Executive Officer
Executive Director and Chief Financial Officer
Chief Executive Officer, Sayona Canada
FY22
$
322,500
285,741
-
Base salary (1)
FY23
$
672,500
347,500
610,145
Increase
%
109%
22%
-
(1)
(2)
Base salary reflects a full year as Executive KMP.
Amounts reported for Mr Belleau have been converted to Australian dollars using an exchange rate of A$1.00:C$0.9014.
Sayona | Annual Report 2023
55
Remuneration Report
Element
Description
As discussed above, a market review of executive remuneration packages was undertaken which indicated remuneration
was positioned significantly below the market median. Whilst executive salaries have been increased, there remains a gap
to market median levels. The extent of the difference to market median levels reflects past conservatism and changes in
the size and complexity of the business. As Sayona evolves, further reviews will be required to ensure executive
remuneration is sufficient to attract and retain the skills and experience necessary to create value for shareholders.
Reviews
Salary is determined on appointment and reviewed annually.
4.2 Short-Term Incentive
The key elements of the FY23 STI award are as follows:
Element
Purpose
Description
Focus participants on delivery of key objectives set by the Board over a twelve month period and ensure participants exhibit
leadership attributes expected of Executive KMP.
Opportunity
The maximum STI opportunity for each Executive KMP is:
Performance
Period
Payment
Vehicle
Performance
Measures
Executive KMP
Position
B Lynch
P Crawford
G Belleau (2)
Managing Director and Chief Executive Officer
Executive Director and Chief Financial Officer
Chief Executive Officer, Sayona Canada
Maximum STI opportunity (1)
%
40%
40%
100%
$
280,000
150,000
610,145
(1)
(2)
Maximum STI opportunity reflects a full year as Executive KMP.
Amounts reported for Mr Belleau have been converted to Australian dollars using an exchange rate of A$1.00:C$0.9014.
Performance is assessed over the period from 1 July 2022 to 30 June 2023.
The FY23 STI award is paid in cash.
The FY23 STI award is determined by reference to the following performance measures and weightings:
Performance measures
Total Recordable Injury Frequency Rate (TRIFR) of 5.0 (or less) for the year ended 30 June 2023
Concentrator at NAL to be operating at a feed rate of 3,800 tonnes per day by 30 June 2023
NAL refurbishment and restart to be completed on time and within budget (including any variances approved by the
Board)
Announcement of JORC compliant Mineral Resource / Ore Reserve estimate for the Moblan Lithium Project to the
Australian Securities Exchange (ASX)
Weighting
%
25%
25%
25%
25%
These performance measures were selected due to their alignment with key project milestones and delivery of safe and
reliable operations. They were also critical in transforming Sayona from a mineral explorer into a leading North American
lithium producer.
Board Discretion The Board retains the discretion to amend, vary, terminate, or suspend the STI plan at any time.
4.3
Long-Term Incentive
The LTI awards granted to KMP in FY23 are detailed in section 5.3.
5. FY23 Performance and Executive Remuneration Outcomes
5.1 Operating and Financial Performance
A key focus for the Board is to align executive remuneration to the creation of shareholder value and achievement of objectives of the Group. The
table below summarises the Group’s financial performance over the last five years as required by the Corporations Act 2001:
Key metrics
Spodumene concentrate produced (dmt)
Profit/(loss) after income tax ($M)
Basic earnings per share (cents)
Dividends paid (cents per share)
Closing share price at 30 June ($)
Market capitalisation ($M)
Annual total shareholder return (%)
FY23
33,120
(12.9)
(0.16)
-
0.175
1,757
17
FY22
-
73.8
0.76
-
0.15
1,238
72
FY21
-
(4.4)
(0.13)
-
0.087
468
1,179
FY20
-
(5.4)
(0.26)
-
0.0068
17
(15)
FY19
-
(2.2)
(0.13)
-
0.008
14
(80)
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Total shareholder return increased by 17% for the year ended 30 June 2023, driven primarily by the successful restart of operations at North
American Lithium and expansion of mineral resources at the Moblan Lithium Project. Since 30 June 2020, Sayona has increased shareholder
value by approximately 25 times.
Although no LTI awards were granted to Executive Directors in FY23, the vesting and exercise of various equity grants from prior years coupled
with personal investments by the CEO and CFO provided alignment with shareholders over the course of the year. This included the vesting and
exercise of the final tranche of the equity grant to the CEO which was approved by shareholders at the 2019 Annual General Meeting and contingent
on share price growth targets over a three year period.
5.2
FY23 Short-Term Incentive Outcomes
The STI plan rewards executives for achievement of weighted performance measures set by the Board at the beginning of the year. The FY23
performance measures reflect the necessary steps required to transform Sayona into a sustainable lithium producer.
The following table summarises the STI performance measures and outcomes for the year ended 30 June 2023:
Performance measures
Total Recordable Injury Frequency Rate (TRIFR) of 5.0 (or less) for the year ended
30 June 2023
Concentrator at NAL to be operating at a feed rate of 3,800 tonnes per day by 30
June 2023
NAL refurbishment and restart to be completed on time and within budget
(including any variances approved by the Board)
Announcement of JORC compliant Mineral Resource / Ore Reserve estimate for
the Moblan Lithium Project to the Australian Securities Exchange (ASX)
The FY23 STI award for Executive KMP is summarised below:
Weighting
%
Achievement
%
25%
25%
25%
25%
100%
100%
100%
100%
100%
Business
outcome
%
25%
25%
25%
25%
100%
Executive KMP
B Lynch
P Crawford
(1)
G Belleau
Maximum
STI
%
40%
40%
100%
Maximum
STI
$
280,000
150,000
302,565
Business
outcome
%
Individual
outcome
%
100%
100%
100%
100%
100%
100%
STI
awarded
$
280,000
150,000
302,565
Percentage of maximum STI
Awarded
%
Forfeited
%
100%
100%
100%
0%
0%
0%
(1)
Remuneration reported for Mr Belleau reflects service as Executive KMP from 1 January 2023. The amounts reported have been converted to Australian dollars using an
exchange rate of A$1.00:C$0.9014.
No discretion was warranted as formulaic STI results were consistent with market expectations and disclosures, and TSR increased by 17% over
the performance period despite a decline in lithium prices from the start of the financial year.
5.3
FY23 Long-Term Incentive Outcomes and Equity Grants On Foot
Equity Awards
The following equity awards were granted to KMP in FY23:
KMP
Executive
G Belleau
(1)
Award
Grant
date
Number
of rights
granted
Market
price on date
of grant
Face value
$
Anticipated
vesting date
FY23 Performance Rights
01-Jan-23
8,559,808
$0.19
1,626,364
30-Jun-27
(1)
Equity awards granted to Mr Belleau in FY23, subject to the achievement of specific performance measures over the period from 1 January 2023 to 30 June 2027.
The following table summarises the movement and balance of equity rights held by KMP over ordinary shares:
KMP
Executive
G Belleau
Award
Equity rights
at beginning
of the year
Granted
during
the year
Vested
during
the year
Lapsed
during
the year
Equity rights
at end
of the year
FY23 Performance Rights
-
8,559,808
-
-
8,559,808
Sayona | Annual Report 2023
57
Remuneration Report
In July 2023, shareholders approved equity grants to the CEO and CFO in respect of past performance. As performance related to current and
prior service periods, the value of these equity grants has been disclosed in the remuneration table in section 7.1.
Options
The following table summarises the movement and balance of options held by KMP:
KMP
Executive
B Lynch
P Crawford
Non-Executive
J Brown
A Buckler
Grant
date
Expiry
date
Exercise
price
Opening
balance as at
1 July 2022
Issued in
(1)
FY23
Exercised in
FY23
Lapsed in
FY23
29-Nov-19
29-Nov-19
28-Jan-22
29-Nov-22
29-Nov-22
28-Jul-23
$0.04
$0.07
$0.15
2,000,000
-
20,000,000
-
4,000,000
-
(2,000,000)
(4,000,000)
-
28-Jan-22
28-Jan-22
28-Jul-23
28-Jul-23
$0.15
$0.15
10,000,000
10,000,000
-
-
-
-
Closing
balance as at
30 June 2023
-
-
-
-
-
-
-
20,000,000
10,000,000
10,000,000
(1)
Options issued to Mr Lynch in FY23 were approved by shareholders at the 2019 Annual General Meeting. Options were granted subject to the achievement of specific
performance measures. Mr Lynch achieved the maximum performance hurdle by increasing the share price to $0.15 by 30 June 2022 (Maximum LTI Target: $0.12).
6. Non-Executive Director Remuneration
The maximum aggregate fee pool for Non-Executive Directors is US$500,000 which was approved by shareholders at the Annual General Meeting
on 28 January 2022.
During FY23, Board fees were increased to assist with attraction and retention of independent Non-Executive Directors, and to bring Board fees
closer to market median levels.
The following table outlines Non-Executive Director fees inclusive of statutory superannuation obligations, effective as at 30 June 2023:
Fee
Board Fees
Position
Non-Executive Director
7. Statutory Disclosures
7.1 Statutory Remuneration
FY22
$
72,000
FY23
$
125,000
Increase
%
74%
The following table details the statutory remuneration disclosures prepared in accordance with Corporations Regulations disclosure requirements:
Short-term benefits
Cash
salary and
fees
$
672,500
322,500
347,500
285,741
305,073
-
125,000
72,000
125,000
72,000
1,575,073
752,241
Year
FY23
FY22
FY23
FY22
FY23
FY22
FY23
FY22
FY23
FY22
FY23
FY22
Cash
incentive
$
Other
benefits
(1)
$
Super-
annuation
$
Other
long-term
(2)
benefits
$
280,000
-
150,000
-
302,565
-
-
-
-
-
732,565
-
114,983
30,694
-
-
45,985
-
-
-
-
-
160,968
30,694
27,500
27,500
36,922
14,259
24,406
-
-
-
-
-
88,828
41,759
-
-
-
-
-
-
-
-
-
-
-
-
Equity
(3)
rights
$
1,610,000
2,058,000
300,000
726,500
310,686
-
-
400,000
-
400,000
2,220,686
3,584,500
Total
remuner-
ation
$
Perfor-
mance
related
%
70%
84%
54%
71%
51%
-
0%
0%
0%
0%
2,704,983
2,438,694
834,422
1,026,500
988,715
-
125,000
472,000
125,000
472,000
4,778,120
4,409,194
KMP
Executive
(4)
B Lynch
P Crawford
G Belleau
(5)
Non-Executive
J Brown
A Buckler
Total
(4)
(1)
(2)
Other benefits include life insurance, motor vehicle allowances, private health insurance and benefits, and net movements in annual leave entitlements. The amount reported
for Mr Lynch for the year ended 30 June 2023 includes a non-recurring encashment of annual leave entitlements.
Other long-term benefits include net movements in long service leave entitlements.
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(3)
(4)
(5)
Equity rights are calculated in accordance with Australian Accounting Standards and reflect the value of equity and equity-related instruments that have been expensed
during the year. The amount reported for Mr Belleau for the year ended 30 June 2023 includes a non-recurring grant of $110,935 in ordinary shares to compensate for benefits
forgone from a previous employer.
Amounts reported for the year ended 30 June 2022 have been restated due to calculation errors.
Remuneration reported for Mr Belleau reflects service as Executive KMP from 1 January 2023. The amounts reported have been converted to Australian dollars using an
exchange rate of A$1.00:C$0.9014.
No termination payments were made to KMP in FY23 or FY22.
7.2 Options Held by KMP
The following table details the number of options held by KMP and their related parties, including unvested options awarded under incentive plans
that are subject to service conditions and vested options that have not yet been exercised and converted into ordinary shares:
Executive KMP
B Lynch
P Crawford
Non-Executive Directors
J Brown
A Buckler
Total
Opening
balance as at
1 July 2022
Exercised and
converted to
ordinary shares
Other net
changes
Closing
balance as at
30 June 2023
Issued
47,159,884
20,000,000
4,000,000
-
(51,159,884)
-
10,000,000
10,000,000
87,159,884
-
-
-
-
4,000,000
(51,159,884)
-
-
-
-
-
-
20,000,000
10,000,000
10,000,000
40,000,000
All options held as at 30 June 2023 are unlisted.
7.3 Ordinary Shares Held by KMP
The following table details the number of ordinary shares held by KMP and their related parties:
Executive KMP
B Lynch
P Crawford
Non-Executive Directors
J Brown
A Buckler
Total
Opening
balance as at
1 July 2022
Received as
remuneration
Received
from exercise
of options
Other net
(1)
changes
Closing
balance as at
30 June 2023
118,109,108
159,585,689
757,094
109,589,051
388,040,942
-
-
-
-
-
51,159,884
-
(6,236,476)
550,000
163,032,516
160,135,689
-
-
-
(7,000,000)
757,094
102,589,051
51,159,884
(12,686,476)
426,514,350
(1)
Other net changes include purchases and sales of ordinary shares and participation in equity issues (in capacity as shareholders).
8. Planned Remuneration Framework Changes
During FY23, the Board engaged an independent remuneration advisor to review the remuneration practices and performance-based structures
of the Board and executive leadership team.
Some of the planned remuneration framework changes include:
•
•
•
•
•
partial deferral of short-term incentive awards to equity for Executive KMP;
annual grant of long-term incentive awards to Executive KMP, subject to specific performance conditions and a minimum performance
period of three years;
introduction of malus and clawback provisions;
increase in maximum aggregate fee pool for Non-Executive Directors in anticipation of additional Non-Executive Director appointments;
introduction of minimum shareholding requirements.
Sayona | Annual Report 2023
59
Remuneration Report
9. Remuneration Governance
9.1 Notice Period and Termination Benefits
The table below summarises the employment agreements in place with Executive KMP as at 30 June 2023:
Executive KMP
Position
B Lynch
P Crawford
G Belleau
Managing Director and Chief Executive Officer
Executive Director and Chief Financial Officer
Chief Executive Officer, Sayona Canada
9.2 Remuneration Consultants
Notice period by
either party
3 months
Not specified
12 months
Termination
benefit
3 months
Not specified
12 months
STI treatment
on termination
Not specified
Not specified
100%
The Board may commission and receive independent advice. No remuneration recommendations as defined under Division 1, Part 1.2, 9B (1) of
the Corporations Act 2001 were received.
9.3 Other Transactions with KMP and Related Parties
There were no other transactions between the Group and KMP or their related parties, other than those disclosed above and elsewhere in the
financial report, that were conducted other than in accordance with normal employee, customer, or supplier relationships on terms no more
favourable than those reasonably expected under arm’s length dealings with unrelated persons.
9.4 Prohibition of Hedging
KMP or closely related parties of KMP are prohibited from entering hedge arrangements that would have the effect of limiting the risk exposure
relating to their remuneration.
In addition, the Board’s remuneration policy prohibits KMP from using Sayona’s shares as collateral in any financial transactions, including margin
loan arrangements.
The Directors’ Report, incorporating the Remuneration Report, is approved in accordance with a resolution of the Board.
James Brown
Executive Director and Interim Chief Executive Officer
Paul Crawford
Executive Director and Chief Financial Officer
Date: 29 September 2023
60
Auditor’s Independence Declaration
Under Section 307C of the Corporations Act 2001
To the Directors of Sayona Mining Limited
As the lead auditor for the audit of the financial report of Sayona Mining Limited for the year ended 30 June
2023, I declare that, to the best of my knowledge and belief, there have been no contraventions of:
(i)
the auditor independence requirements as set out in the Corporations Act 2001 in relation to the
audit; and
(ii)
any applicable code of professional conduct in relation to the audit.
Nexia Brisbane Audit Pty Ltd
Ann-Maree Robertson
Director
Date: 29 September 2023
Sayona | Annual Report 2023
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5062
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Financial
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Additional
Information
Financial
Report
Consolidated Statement of Profit or Loss
Consolidated Statement of Comprehensive Income
Consolidated Statement of Financial Position
Consolidated Statement of Changes in Equity
Consolidated Statement of Cash Flows
Notes to the Financial Statements
Directors’ Declaration
Independent Auditor’s Report
64
64
65
66
67
68
98
99
Sayona | Annual Report 2023 63
Consolidated Statement of Profit or Loss
for the year ended 30 June 2023
Revenue
Other income
Expenses
Profit/(loss) from operations
Financial income
Financial expenses
Net financial income/(expense)
Profit/(loss) before income tax
Income tax expense
Profit/(loss) after income tax
Attributable to:
Equity holders of Sayona Mining Limited
Non-controlling interests
Earnings per share
Basic earnings per share (cents)
Diluted earnings per share (cents)
*
Refer to Note 33 for details on restatement of prior period comparatives.
The accompanying notes form part of the consolidated financial statements.
Consolidated Statement of Comprehensive Income
for the year ended 30 June 2023
Profit/(loss) after income tax
Other comprehensive income/(loss)
Items that may be reclassified to the Consolidated Statement of Profit or Loss:
Foreign exchange rate differences on translation of foreign operations
Total items that may be reclassified to the Consolidated Statement of Profit or Loss
Items that will not be reclassified to the Consolidated Statement of Profit or Loss:
Fair value losses on financial assets at fair value through other comprehensive income, net of tax
Total items that will not be reclassified to the Consolidated Statement of Profit or Loss
24
Total other comprehensive income/(loss)
Total comprehensive income/(loss)
Attributable to:
Equity holders of Sayona Mining Limited
Non-controlling interests
*
Refer to Note 33 for details on restatement of prior period comparatives.
The accompanying notes form part of the consolidated financial statements.
64
Note
5
5
6
20
20
20
7
2023
$’000
-
1,695
(25,794)
(24,099)
16,327
(1,506)
14,821
(9,278)
(3,649)
(12,927)
2022
$’000
Restated *
-
102,103
(22,150)
79,953
111
(3,037)
(2,926)
77,027
(3,207)
73,820
(13,626)
699
51,459
22,361
8
8
(0.16)
(0.16)
0.76
0.71
Note
2023
$’000
2022
$’000
Restated *
(12,927)
73,820
(4,408)
(4,408)
(1,544)
(1,544)
(5,952)
(18,879)
13,797
13,797
-
-
13,797
87,617
(18,632)
(247)
63,008
24,609
Consolidated Statement of Financial Position
as at 30 June 2023
Operating
and Financial
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Governance
Financial
Report
Additional
Information
ASSETS
Current assets
Cash and cash equivalents
Trade and other receivables
Inventories
Current tax assets
Other assets
Total current assets
Non-current assets
Other financial assets
Property, plant and equipment
Intangible assets
Total non-current assets
Total assets
LIABILITIES
Current liabilities
Trade and other payables
Interest bearing liabilities
Provisions
Total current liabilities
Non-current liabilities
Interest bearing liabilities
Other liabilities
Deferred tax liabilities
Provisions
Total non-current liabilities
Total liabilities
Net assets
EQUITY
Share capital
Reserves
Accumulated losses
Total equity attributable to equity holders of Sayona Mining Limited
Non-controlling interests
Total equity
*
Refer to Note 33 for details on restatement of prior period comparatives.
The accompanying notes form part of the consolidated financial statements.
Note
2023
$’000
2022
$’000
Restated *
17
9
10
11
21
12
13
14
18
16
18
15
7
16
23
24
211,119
19,298
48,664
1,557
33,919
314,557
12,943
682,073
-
695,016
1,009,573
29,497
1,944
846
32,287
29,270
13,956
13,983
35,254
92,463
124,750
884,823
770,700
12,773
(27,316)
756,157
128,666
884,823
184,559
9,681
-
-
13,700
207,940
-
453,036
185
453,221
661,161
23,981
10
324
24,315
23,462
11,504
10,174
31,085
76,225
100,540
560,621
504,255
13,551
(13,782)
504,024
56,597
560,621
Sayona | Annual Report 2023
65
Consolidated Statement of Changes in Equity
for the year ended 30 June 2023
Attributable to equity holders of Sayona Mining Limited
Note
Balance as at 1 July 2022
Profit/(loss) after income tax
Other comprehensive loss
Total comprehensive loss
Transactions with owners:
Shares issued
Transaction costs
Share based payments
Transfers and other movements
23
23
24
Share
capital
$’000
504,255
-
-
-
276,404
(9,959)
-
-
Reserves
$’000
13,551
-
(5,006)
(5,006)
Accumulated
losses
$’000
(13,782)
(13,626)
-
(13,626)
-
-
4,320
(92)
-
-
-
92
Balance as at 30 June 2023
770,700
12,773
(27,316)
Restated *
Balance as at 1 July 2021
Profit/(loss) after income tax
Other comprehensive income
Total comprehensive income
Transactions with owners:
Shares issued
Transaction costs
Share based payments
Transfers and other movements
Balance as at 30 June 2022
23
23
24
128,728
-
-
-
392,475
(16,948)
-
-
504,255
304
-
11,549
11,549
-
-
3,040
(1,342)
13,551
(67,643)
51,459
-
51,459
-
-
-
2,402
(13,782)
*
Refer to Note 33 for details on restatement of prior period comparatives.
The accompanying notes form part of the consolidated financial statements.
Non-
controlling
interests
$’000
56,597
699
(946)
(247)
72,316
-
-
-
128,666
6,497
22,361
2,248
24,609
26,551
-
-
(1,060)
56,597
Total
$’000
504,024
(13,626)
(5,006)
(18,632)
276,404
(9,959)
4,320
-
756,157
61,389
51,459
11,549
63,008
392,475
(16,948)
3,040
1,060
504,024
Total
equity
$’000
560,621
(12,927)
(5,952)
(18,879)
348,720
(9,959)
4,320
-
884,823
67,886
73,820
13,797
87,617
419,026
(16,948)
3,040
-
560,621
66
Consolidated Statement of Cash Flows
for the year ended 30 June 2023
Operating activities
Profit/(loss) before income tax
Adjustments for:
Depreciation and amortisation expense
Gain on acquisition of North American Lithium
Net financial income and expenses
Share based payments
Changes in assets and liabilities:
Trade and other receivables
Inventories
Other assets
Trade and other payables
Provisions and other liabilities
Cash generated from operations
Interest received
Interest paid
Net cash flows from operating activities
Investing activities
Acquisition of subsidiaries and joint operations, net of cash acquired
Exploration expenditure
Purchases of property, plant and equipment
Investments in financial assets
Cash outflows from investing activities
Proceeds from sale of property, plant and equipment
Net cash flows from investing activities
Financing activities
Proceeds from associated entities
Proceeds from interest bearing liabilities
Repayment of interest bearing liabilities
Proceeds from issue of shares and exercise of options
Transaction costs associated with share issues
Net cash flows from financing activities
Net increase in cash and cash equivalents
Cash and cash equivalents at the beginning of the financial year
Foreign exchange rate differences on cash and cash equivalents
Cash and cash equivalents at the end of the financial year
The accompanying notes form part of the consolidated financial statements.
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Information
Note
2023
$’000
2022
$’000
(9,278)
77,027
6,162
-
(14,830)
4,281
(12,287)
(47,603)
(19,626)
4,466
19,747
(68,968)
2,817
(329)
(66,480)
-
(66,274)
(127,088)
(14,431)
(207,793)
63
(207,730)
77,806
110
(776)
231,870
(9,959)
299,051
24,841
184,559
1,719
211,119
50
(101,716)
2,926
5,919
732
-
(13,656)
3,256
11,711
(13,751)
111
(1)
(13,641)
(221,926)
(10,160)
(21,865)
-
(253,951)
-
(253,951)
16,511
-
(43)
423,876
(15,578)
424,766
157,174
35,503
(8,118)
184,559
Sayona | Annual Report 2023
67
Notes to the Financial Statements
These consolidated financial statements and notes represent those
of Sayona Mining Limited ("the Company") and its controlled entities
(the “Consolidated Group” or “Group”). Where an accounting policy,
critical accounting estimate, assumption or judgement is specific to
a note, these are described within the note to which they relate.
These policies have been consistently applied to all periods
presented, except as described in Note 3.
The consolidated financial statements of the Group for the year
ended 30 June 2023 were authorised for issue in accordance with a
resolution of the Directors on 29 September 2023.
1. Reporting Entity
Sayona Mining Limited is a for-profit company limited by shares
incorporated and domiciled in Australia with a primary listing on the
Australian Securities Exchange (ASX) and a secondary listing on the
OTCQB Venture Market in the United States (OTCQB).
The nature of the operations and principal activities of the Group are
described in the Directors’ Report.
The separate financial statements of the parent entity, Sayona
Mining Limited, have been presented in Note 32 of this financial
report as required by the Corporations Act 2001.
2. Basis of Preparation
The consolidated financial statements are general purpose financial
statements which have been prepared in accordance with the
requirements of the Corporations Act 2001, Australian Accounting
Standards and other authoritative pronouncements of
the
Australian Accounting Standards Board (AASB),
International
Financial Reporting Standards (IFRS) and other authoritative
pronouncements of the International Accounting Standards Board
(IASB).
The financial statements have been prepared on a going concern
basis as management has assessed that the Group will be able to
meet its obligations as and when they fall due and there is no
significant uncertainty over the Group’s ability to continue as a going
concern for the twelve months from the date of this report.
The consolidated financial statements have been prepared on a
historical cost basis, except for certain financial assets and
liabilities (including derivative financial instruments) which are
required to be measured at fair value.
All amounts are presented in Australian dollars, with values rounded
to the nearest thousand in accordance with ASIC Corporations
Instrument 2016/191, unless otherwise stated.
Where required by Accounting Standards, comparative figures have
been reclassified for consistency with changes in presentation for
the current financial year.
(a) Principles of consolidation
The consolidated financial statements comprise the financial
statements of the Group. A list of controlled entities (subsidiaries)
at year end is provided in Note 25.
Intercompany transactions, balances and unrealised gains or losses
on transactions between Group entities are fully eliminated on
consolidation. Subsidiaries are consolidated from the date on which
control is obtained to the date on which control is ceased.
68
(b) Critical accounting estimates and judgements
The preparation of the consolidated financial statements require
management to apply accounting policies and methodologies
based on complex and subjective judgements and estimates.
Estimates assume a reasonable expectation of future events and
are based on historical experience and assumptions as well as
current trends and economic data, obtained both externally and
within the Group.
The use of these estimates, assumptions and judgements affects
the amounts reported in the consolidated financial statements. The
areas involving a higher degree of judgement or complexity, or
where assumptions and estimates are significant to the financial
statements, are disclosed in the following notes:
Note
5
7
10
12
16
Revenue and Other Income
Tax
Inventories
Property, Plant and Equipment
Provisions
(c) Foreign currency translation
The Group’s consolidated financial statements are presented in
Australian dollars, which has been assessed by management as the
functional currency of the Group. Management will reassess the
Group’s functional currency if there are any changes which impact
the primary economic environment of the Group.
in foreign currencies are
Transactions denominated
initially
translated into Australian dollars using the exchange rate on the
date of the underlying transaction. Monetary assets and liabilities
in foreign currencies are translated using the
denominated
exchange rate at the end of the reporting period.
Exchange gains or losses on settlement or translation of monetary
items are included in the Consolidated Statement of Profit or Loss,
except for foreign exchange differences resulting from translation
of foreign operations, which are
in the
Consolidated Statement of Other Comprehensive Income and
subsequently transferred to the Consolidated Statement of Profit or
Loss on disposal of the foreign operation.
initially recognised
Non-monetary items measured on a historical cost basis in a foreign
currency are translated into Australian dollars using the exchange
rate on the date of the underlying transaction. Non-monetary items
measured at fair value in a foreign currency are translated using the
exchange rate on the date when the fair value is determined.
Exchange gains or losses on translation of non-monetary items
measured at fair value are recognised in the same manner as gains
or losses on change in fair value of the non-monetary item.
(d) Goods and Services Tax (GST) and Québec Sales Tax (QST)
Revenues, expenses and assets are recognised net of the amount
of GST/QST, except where the amount of GST/QST incurred is not
recoverable from the taxation authority.
Receivables and payables are stated inclusive of the amount of
GST/QST receivable or payable. The net amount of GST/QST
recoverable from, or payable to, the taxation authority is included
with other receivables or payables in the Consolidated Statement of
Financial Position.
Cash flows are presented on a gross basis. The GST/QST
components of cash flows arising from investing or financing
activities are presented as operating cash flows.
Notes to the Financial Statements
3. New Standards and Interpretations
(a) New accounting standards and interpretations effective from
1 July 2022
The following new accounting standards and interpretations have
been published and are effective for the year ended 30 June 2023:
AASB 2020-3: Annual Improvements to IFRS Standards 2018–
2020 and Other Amendments
This standard amends:
a)
the application of AASB 1 by a subsidiary that becomes a
in relation to the
first-time adopter after
measurement of cumulative translation differences;
its parent
b) AASB 3 to update references to the Conceptual Framework
for Financial Reporting;
c) AASB 9 to clarify when the terms of a new or modified
financial liability are substantially different from the terms
of the original financial liability;
d) AASB 116 to require an entity to recognise the sales
proceeds from selling items produced while preparing
property, plant and equipment for its intended use and the
related cost in profit or loss, instead of deducting the
amounts received from the cost of the asset;
e) AASB 137 to specify the costs that an entity includes when
assessing whether a contract will be loss-making; and
f)
the fair value measurement requirements in AASB 141 to
align with those in other Australian Accounting Standards.
The Group has reviewed these amendments and concluded that
none of these changes are likely to have a material impact on the
Group.
(b) New accounting standards and interpretations issued but not
yet effective
The following new accounting standards and interpretations have
been published but are not yet effective for the year ended 30 June
2023 and have not been early adopted by the Group:
AASB 2020-1: Amendments to Australian Accounting Standards –
Classification of Liabilities as Current or Non-Current
Amends AASB 101 to clarify that liabilities are classified as either
current or non-current, depending on the rights that exist at the end
of the reporting period. Classification
is unaffected by the
expectations of the entity or events after the reporting date (for
example, the receipt of a waiver, a breach of covenant, or settlement
of a liability).
AASB 2021-2: Amendments to Australian Accounting Standards –
Disclosure of Accounting Policies and Definition of Accounting
Estimates
This Standard amends:
a) AASB 7, to clarify that information about measurement
bases for financial instruments is expected to be material
to an entity’s financial statements;
b) AASB 101, to require entities to disclose their material
accounting policy information rather than their significant
accounting policies;
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c) AASB 108, to clarify how entities should distinguish
changes in accounting policies and changes in accounting
estimates;
d) AASB 134,
identify material accounting policy
information as a component of a complete set of financial
statements; and
to
e) AASB Practice Statement 2, to provide guidance on how to
apply the concept of materiality to accounting policy
disclosures.
AASB 2021-5: Amendments to Australian Accounting Standards –
Deferred Tax related to Assets and Liabilities arising from a Single
Transaction
The amendment narrowed the scope of the recognition exemption
in paragraphs 15 and 24 of AASB 112 (recognition exemption) so
that it no longer applies to transactions that, on initial recognition,
give rise to equal taxable and deductible temporary differences. The
amendment applies to transactions that occur on or after the
beginning of the earliest comparative period presented.
The Group has reviewed these amendments and improvements and
does not expect them to have a material impact on the Group.
The Group does not intend to early adopt any of the new standards
or interpretations. It is expected that where applicable, these
standards and interpretations will be adopted on each respective
effective date.
Sayona | Annual Report 2023
69
Notes to the Financial Statements
Financial Performance
This section details the results and financial performance of the Group including profitability and earnings per share.
4. Segment Reporting
(a)
Identification of reportable segments
The Group is an emerging lithium producer with operations in Australia and Canada. The principal activities of the Group during the year were
lithium mining and processing at North American Lithium and ongoing identification, evaluation and development of its portfolio of mineral
exploration assets in Australia and Canada, predominantly focusing on lithium.
Management has determined the operating segments based on the reports that are used by the Board to make strategic decisions. Due to the
geographically disparate nature of the operations, management examines the Group’s financial performance and activity from a geographical
perspective. During the year, the reportable segments for the Group were segregated between Australian operations, Canadian operations and
Corporate activities.
The principal activities of each reportable segment are summarised as follows:
Reportable segment
Australian operations
Principal activities
Operations located in Western Australia, Australia
Graphite projects
Lithium and gold projects
Exploration site for graphite in the East Kimberley region
Exploration of lithium and gold tenements in the Pilbara and Yilgarn regions
Canadian operations
Operations located in Québec, Canada
Abitibi-Témiscamingue Hub
North American Lithium (NAL)
Authier Lithium Project
Tansim Lithium Project
Vallée Lithium Project
Eeyou Istchee James Bay Hub
Lac Albert Lithium Project
Moblan Lithium Project
Troilus Claims
Lithium mining and processing
Hard rock lithium deposit
Exploration site for lithium, tantalum and beryllium
Earn-in claims located adjacent to NAL
Exploration site for lithium pegmatite occurrences
Drilling deposit host to high-grade spodumene mineralisation
Wholly-owned claims located adjacent to the Moblan Lithium Project
Corporate
Corporate activities not directly related to operations
70
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Notes to the Financial Statements
4. Segment Reporting (continued)
(b) Segment results
Segment performance is measured by EBIT and EBITDA. EBIT is profit before net financial income and expenses, tax and other earnings
adjustment items including impairments. EBITDA is EBIT before depreciation and amortisation expense.
Year ended 30 June 2023
Revenue
Other income
Total revenue and other income
EBITDA
Depreciation and amortisation expense
EBIT
Net financial income/(expense)
Profit/(loss) before income tax
Income tax expense
Profit/(loss) after income tax
Exploration expenditure
Capital expenditure
Total assets
Total liabilities
(1)
(1)
Capital expenditure excludes capitalised exploration expenditure.
Year ended 30 June 2022
Restated *
Revenue
Other income
Total revenue and other income
EBITDA
Depreciation and amortisation expense
EBIT
Net financial income/(expense)
Profit/(loss) before income tax
Income tax expense
Profit/(loss) after income tax
Exploration expenditure
Capital expenditure
Total assets
Total liabilities
(1)
Australian
operations
$’000
Canadian
operations
$’000
Corporate
$’000
Group
eliminations
$’000
-
-
-
(247)
-
(247)
-
(247)
-
(247)
593
5
3,750
17
Australian
operations
$’000
-
-
-
(142)
-
(142)
-
(142)
-
(142)
1,039
-
3,153
28
-
1,695
1,695
(9,076)
(6,097)
(15,173)
(946)
(16,119)
(3,649)
(19,768)
91,773
152,989
839,539
112,706
Canadian
operations
$’000
-
102,061
102,061
88,523
(9)
88,514
(1,283)
87,231
(3,207)
84,024
9,276
22,248
486,836
148,070
-
-
-
(8,614)
(65)
(8,679)
15,767
7,088
-
7,088
-
40
805,945
9,804
-
-
-
-
-
-
-
-
-
-
-
-
(639,661)
2,223
Corporate
$’000
Group
eliminations
$’000
-
42
42
(8,378)
(41)
(8,419)
(1,643)
(10,062)
-
(10,062)
-
-
431,982
1,487
-
-
-
-
-
-
-
-
-
-
-
-
(260,810)
(49,045)
Total
$’000
-
1,695
1,695
(17,937)
(6,162)
(24,099)
14,821
(9,278)
(3,649)
(12,927)
92,366
153,034
1,009,573
124,750
Total
$’000
-
102,103
102,103
80,003
(50)
79,953
(2,926)
77,027
(3,207)
73,820
10,315
22,248
661,161
100,540
*
(1)
Refer to Note 33 for details on restatement of prior period comparatives.
Capital expenditure excludes capitalised exploration expenditure.
Inter-segment transactions
Inter-segment transactions are made on a commercial basis. All such transactions are eliminated on consolidation of the Group's financial
statements. There were no transfers between segments reflected in the revenues, expenses or results above.
Segment assets
Where an asset is used across multiple segments, the asset is allocated to the segment that receives the majority of the economic value from the
asset. In most instances, segment assets are clearly identifiable on the basis of their nature and physical location.
Segment liabilities
Liabilities are allocated to segments where there is a direct nexus between the incurrence of the liability and the operations of the segment.
Sayona | Annual Report 2023
71
Notes to the Financial Statements
5. Revenue and Other Income
Revenue
Revenue from contracts with customers
Total revenue
Other income
Gain on acquisition of North American Lithium
Government grants and incentives
Other income
Total other income
Total revenue and other income
*
Refer to Note 33 for details on restatement of prior period comparatives.
Recognition and measurement
2023
$’000
-
-
-
598
1,097
1,695
1,695
2022
$’000
Restated *
-
-
101,716
42
345
102,103
102,103
Revenue is recognised on an accrual basis and is measured at the fair value of the consideration received or receivable. The Group recognises
revenue when the amount of revenue can be reliably measured and it is probable that future economic benefits will flow to the Group.
All revenue is stated net of the amount of goods and services tax and sales tax.
Government grants and incentives
Government grants and incentives are recognised at fair value where there is reasonable assurance that the grants and incentives will be received
and the Group will comply with all relevant conditions.
Key judgements and estimates
Gain on acquisition of North American Lithium
On 27 August 2021, the Group acquired 100% of the issued capital of North American Lithium Inc. (NAL), a known lithium reserve and former
producer of spodumene concentrate, for a purchase consideration of $128.6 million. The acquisition was part of the Group’s strategy to
integrate NAL’s assets with its nearby Authier Lithium Project and expand its lithium reserves and processing operations in the Abitibi-
Témiscamingue region.
The gain arising on acquisition of NAL was determined using a discounted cash flow model and required significant input by management,
subject to judgements and estimates.
The fair value of NAL’s identifiable assets and liabilities was based on life-of-mine plans. Expected future cash flows were based on estimates
of future production and commodity prices, operating costs, and forecast capital expenditures using the life-of-mine plan at the date of
acquisition. A replacement-cost approach was used to determine the fair value of other property, plant and equipment.
Market uncertainties, historical transactions and future economic expectations were assessed by management and factored into the cash
flow model. Estimates of significant expenditure required to restore operations to full commercial production stage were included.
6. Expenses
Acquisition and transaction costs
Administration and corporate overheads
Changes in inventories of finished goods and work in progress
Depreciation and amortisation expense
Employee benefits expense
External services
Raw materials and consumables used
Royalties paid and payable
All other operating expenses
Total expenses
72
2023
$’000
-
8,040
(41,408)
6,162
18,928
21,970
5,060
-
7,042
25,794
2022
$’000
1,489
3,533
-
50
9,885
3,417
857
20
2,899
22,150
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Notes to the Financial Statements
7. Tax
(a)
Income tax expense
Income tax expense comprises current and deferred tax and is recognised in the Consolidated Statement of Profit or Loss, except to the extent
that it relates to items recognised directly in the Consolidated Statement of Comprehensive Income.
Current income tax expense
Deferred income tax expense
Total income tax expense
*
Refer to Note 33 for details on restatement of prior period comparatives.
2023
$’000
-
3,649
3,649
2022
$’000
Restated *
-
3,207
3,207
Income tax expense charged to profit or loss is the tax payable on the current period’s taxable income or loss based on the applicable income tax
rate for each jurisdiction adjusted by changes in deferred tax assets and liabilities attributable to temporary differences and to unused tax losses.
Current and deferred tax expense is calculated using the tax rates enacted or substantively enacted at the end of the reporting period and includes
any adjustment to tax payable in respect of previous years. Management periodically evaluates positions taken in tax returns with respect to
situations in which applicable tax regulation is subject to interpretation and considers whether it is probable that a taxation authority will accept
an uncertain tax treatment. The Group measures its tax balances based on the most likely amount or the expected value, depending on which
method provides a better prediction of the resolution of the uncertainty.
(b) Reconciliation of prima facie tax expense to income tax expense
Profit/(loss) before income tax
Income tax on profit/(loss) before income tax calculated at 30% (2022: 25%)
Adjust for tax effect of:
Gain on acquisition of North American Lithium
Mining tax
Non-deductible expenses
Other non-assessable income
Tax losses and temporary differences not brought to account
Total income tax expense
*
Refer to Note 33 for details on restatement of prior period comparatives.
(c) Deferred tax balances
At the beginning of the financial year
Additions through business combinations
Charged to profit or loss
Charged to equity
At the end of the financial year
*
Refer to Note 33 for details on restatement of prior period comparatives.
2023
$’000
(9,278)
(2,783)
-
1,650
4,366
(4,820)
5,236
3,649
2022
$’000
Restated *
77,027
19,257
(25,429)
2,048
3,702
(10)
3,639
3,207
2023
$’000
10,174
-
3,649
160
13,983
2022
$’000
Restated *
-
6,659
3,207
308
10,174
Deferred tax is provided using the balance sheet liability method, providing for the tax effect of temporary differences between the tax bases of
assets and liabilities and their carrying values in the consolidated financial statements. The tax effect of certain temporary differences is not
recognised, principally with respect to:
–
–
temporary differences arising on the initial recognition of assets or liabilities (other than those arising in a business combination or
manner that initially impacted accounting or taxable profit); and
initial recognition of goodwill.
Deferred tax assets relating to temporary differences and unused tax losses are recognised only to the extent that it is probable that future taxable
profits will be available against which the benefit of the deferred tax assets can be utilised. Deferred tax assets are reviewed at each balance sheet
date and amended to the extent that it is no longer probable that the related tax benefit will be realised. Deferred tax assets and liabilities are
offset when they relate to income taxes levied by the same tax authority and the Group has both the right and the intention to settle its current tax
assets and liabilities on a net or simultaneous basis.
Sayona | Annual Report 2023
73
Notes to the Financial Statements
7. Tax (continued)
(d) Movement in deferred tax balances
The composition of the Group’s net deferred tax assets and liabilities recognised in the Consolidated Statement of Financial Position and deferred
tax expense charged/(credited) to the Consolidated Statement of Profit or Loss is as follows:
Temporary differences
Deferred income
Property, plant and equipment
Provisions
Tax losses
Other
Total
Set off temporary differences
Total
Deferred tax assets
Deferred tax liabilities
Net charge/(credit)
2023
$’000
2022
$’000
Restated *
2023
$’000
2022
$’000
Restated *
2023
$’000
2022
$’000
Restated *
1,896
7,331
13,321
52,856
3,279
78,683
(78,683)
-
1,881
7,737
13,238
31,198
2,521
56,575
(56,575)
-
-
91,119
-
-
1,547
92,666
(78,683)
13,983
-
66,232
-
-
517
66,749
(56,575)
10,174
(15)
25,293
(83)
(21,658)
272
3,809
-
3,809
(1,881)
58,495
(13,238)
(31,198)
(2,004)
10,174
-
10,174
*
Refer to Note 33 for details on restatement of prior period comparatives.
(e) Unrecognised deferred tax assets and liabilities
The composition of the Group’s unrecognised deferred tax assets and liabilities is as follows:
Tax losses – capital
Tax losses – revenue
Temporary differences
Total unrecognised deferred tax assets
*
Refer to Note 33 for details on restatement of prior period comparatives.
2023
$’000
6,736
22,472
-
29,208
2022
$’000
Restated *
5,614
17,101
909
23,624
The Group has carry forward revenue losses of $287,902,521 (2022: $185,272,561) and capital losses of $22,454,683 (2022: $22,454,683).
(f) Tax consolidation
Sayona Mining Limited and its wholly owned Australian resident subsidiaries formed a tax consolidated group with effect from 1 July 2015 and is
therefore taxed as a single entity from that date. Sayona Mining Limited is the head entity of the tax consolidated group. Income tax expense and
deferred tax assets and liabilities arising from temporary differences of the members of the tax consolidated group are recognised in the separate
financial statements of the members of the tax-consolidated group using the “separate taxpayer within group” approach by reference to the
carrying values in the separate financial statements of each entity and the relevant tax values under tax consolidation. Current tax assets and
liabilities and deferred tax assets arising from unused tax losses and relevant tax credits of the members of the tax-consolidated group are
recognised by the Company (as head entity of the tax consolidated group). Tax funding arrangements are currently in place between entities in
the tax consolidated group.
Key judgements and estimates
Deferred tax
Judgement is required in assessing whether deferred tax assets and certain deferred tax liabilities are recognised in the Consolidated
Statement of Financial Position. Deferred tax assets are recognised only where it is considered more likely than not that they will be recovered,
which is dependent on the generation of sufficient future taxable profits.
Assumptions about the generation of future taxable profits depend on management’s estimates of future cash flows. These depend on
estimates of future production and sales volumes, commodity prices, reserves, operating costs, closure and rehabilitation costs, capital
expenditure and other capital management transactions.
Uncertain tax matters – Unused tax losses on acquisition
Tax benefits acquired as part of a business combination, but not satisfying the criteria for separate recognition at that date, are recognised
subsequently if new information about facts and circumstances arises. The adjustment is treated as a reduction to goodwill if it has occurred
during the measurement period. If it occurs outside the recognition period, the adjustment is recognised in the Consolidated Statement of
Profit or Loss.
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8. Earnings per Share
The following reflects the profit or loss and number of shares used in the basic and diluted earnings per share (EPS) computations:
Profit/(loss) attributable to equity holders of Sayona Mining Limited ($’000)
Weighted average number of ordinary shares (‘000)
Basic earnings per share denominator
(1)
Ordinary shares contingently issuable
Diluted earnings per share denominator
Earnings per share (cents)
Basic
Diluted
2023
2022
Restated *
(13,626)
51,459
8,695,396
-
8,695,396
6,794,836
407,180
7,202,016
(0.16)
(0.16)
0.76
0.71
*
(1)
Refer to Note 33 for details on restatement of prior period comparatives.
The weighted average number of options contingently issuable into ordinary shares as at 30 June 2023 is 241.8 million. The inclusion of these contingently issuable ordinary
shares would have the effect of reducing the loss per share. Accordingly, these potential ordinary shares have not been included in the determination of diluted earnings per
share.
Basic earnings per share
Basic earnings per share amounts are calculated based on profit or loss attributable to equity holders of Sayona Mining Limited and the weighted
average number of ordinary shares outstanding during the year.
Diluted earnings per share
Dilutive earnings per share amounts are calculated based on profit or loss attributable to equity holders of Sayona Mining Limited and the weighted
average number of ordinary shares outstanding after adjustment for the effects of all dilutive potential ordinary shares.
Sayona | Annual Report 2023
75
Notes to the Financial Statements
Operating Assets and Liabilities
This section details the assets used and liabilities incurred to generate the Group’s trading performance. Assets and liabilities relating to the
Group’s financing activities are addressed in the Capital Structure and Financial Management section on pages 83 to 91.
9. Trade and Other Receivables
Trade receivables
GST/QST receivable from taxation authorities
(1)
Other receivables from associated entities
Other receivables
Total trade and other receivables
Comprising:
Current
Non-current
2023
$’000
174
18,410
-
714
19,298
19,298
-
2022
$’000
577
5,934
3,156
14
9,681
9,681
-
(1)
Amount relates to outstanding cash calls from Piedmont Lithium Québec Holdings Inc.
Recognition and measurement
Trade receivables are generally due within 30 days. Trade and other receivables are recognised initially at fair value and subsequently measured
at amortised cost using the effective interest method, less an allowance for expected credit losses.
The collectability of trade and other receivables is assessed continuously. Individual receivables which are deemed to be unrecoverable are written
off by reducing the carrying value directly. At the reporting date, specific allowances are made for any expected credit losses based on a review
of all outstanding amounts.
10. Inventories
Raw materials and consumables
Work in progress
Finished goods
Total inventories
Comprising:
Current
Non-current
Recognition and measurement
2023
$’000
6,333
5,166
37,165
48,664
48,664
-
2022
$’000
-
-
-
-
-
-
Inventories are valued at the lower of cost and net realisable value. Cost is determined primarily on the basis of average cost. For processed
inventories, cost is derived on an absorption costing basis. Cost comprises the cost of purchasing raw materials and the cost of production,
including attributable overheads. Net realisable value is calculated as the estimated proceeds of sale, less an estimate of all further costs required
to the stage of completion and all applicable marketing, selling and distribution costs to be incurred.
Raw materials and consumables
Raw materials and consumables represent spares, consumables and other supplies yet to be utilised in the production process, except where the
raw materials purchased are equivalent products to those that the Group produces and would otherwise classify as work in progress.
Key judgements and estimates
Carrying value of inventories
The Group reviews the carrying value of inventories regularly to ensure that their cost does not exceed net realisable value. In determining net
realisable value, various factors are taken into account including estimated future sales prices based on prevailing commodity prices at the
reporting date, less estimated costs to complete production and bring the product to sale.
Stockpiles are measured by estimating the movement in quantities at each stocking point, the amount of contained metal, and the estimated
recovery percentage based on the expected processing method. Physical quantities are assessed primarily through surveys and assays.
Estimates are periodically reassessed by the Group, taking into account technical analysis and historical performance.
76
Notes to the Financial Statements
11. Other Assets
Deposits
Prepayments
Total other assets
Comprising:
Current
Non-current
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2023
$’000
31,993
1,926
33,919
33,919
-
2022
$’000
13,120
580
13,700
13,700
-
Deposits include cash deposits, term deposits held with financial institutions with a maturity of more than three months from reporting date, and
funds held as security in favour of Ministere de I'Energie et des Ressources Naturelles (MERN) for mine closure and rehabilitation of North
American Lithium.
12. Property, Plant and Equipment
Year ended 30 June 2023
Cost
At the beginning of the financial year
Additions
Disposals
Transfers and other movements
At the end of the financial year
Accumulated depreciation
At the beginning of the financial year
Depreciation charge for the year
Disposals
Transfers and other movements
At the end of the financial year
Year ended 30 June 2022
Cost
At the beginning of the financial year
Acquisition of subsidiaries
Additions
Transfers and other movements
At the end of the financial year
(1)
Accumulated depreciation
At the beginning of the financial year
Depreciation charge for the year
Transfers and other movements
At the end of the financial year
Net book value as at 30 June 2022
Land and
buildings
$’000
Plant and
equipment
$’000
Mine
properties
$’000
149
1,522
(124)
4,668
6,215
(114)
(408)
124
(8)
(406)
236,126
9,901
(13,369)
89,535
322,193
(69)
(4,860)
32
(108)
(5,005)
152,234
-
-
77,892
230,126
-
(894)
-
(272)
(1,166)
228,960
Capital
works in
progress
$’000
Exploration
and
evaluation
$’000
27,385
141,611
-
(168,838)
37,325
92,366
-
267
158
129,958
-
-
-
-
-
-
-
-
-
-
Total
$’000
453,219
245,400
(13,493)
3,524
688,650
(183)
(6,162)
156
(388)
(6,577)
158
129,958
682,073
Land and
buildings
$’000
Plant and
equipment
$’000
Mine
properties
$’000
Capital
works in
progress
$’000
Exploration
and
evaluation
$’000
149
-
-
-
149
(12)
(39)
(63)
(114)
35
35
203,387
1,021
31,683
236,126
(11)
(11)
(47)
(69)
-
59,889
-
92,345
152,234
-
-
-
-
-
-
21,227
6,158
27,385
-
-
-
-
25,553
116,561
10,315
(115,104)
37,325
-
-
-
-
Total
$’000
25,737
379,837
32,563
15,082
453,219
(23)
(50)
(110)
(183)
Net book value as at 30 June 2023
5,809
317,188
236,057
152,234
27,385
37,325
453,036
(1)
On 27 August 2021, the Group acquired 100% of the issued capital of North American Lithium Inc. (NAL). The amounts reported reflect the fair value of identifiable assets at
the date of acquisition.
Reclassification of asset categories within property, plant and equipment
Mine properties, exploration and evaluation assets and right-of-use assets have been reclassified within property, plant and equipment, in line with
changes to Group accounting policies in the current reporting period. This reclassification has been applied retrospectively to prior period
comparatives.
Sayona | Annual Report 2023
77
Notes to the Financial Statements
12. Property, Plant and Equipment (continued)
Recognition and measurement
Property, plant and equipment is recorded at cost less accumulated depreciation and impairment charges. Cost is the fair value of consideration
given to acquire the asset at the time of its acquisition or construction, and includes the direct cost of bringing the asset to the location and
condition necessary for operation.
Subsequent costs are included in the asset’s carrying value or recognised as a separate asset, as appropriate, only when it is probable that the
future economic benefits associated with the item will flow to the Group and the cost of the item can be measured reliably. All other repairs and
maintenance are recognised as expenses in profit or loss during the financial period in which they are incurred.
An item of property, plant and equipment and any significant part initially recognised is derecognised upon disposal or when no future economic
benefits are expected. Any gain or loss arising on derecognition of the asset is included in the Consolidated Statement of Profit or Loss when the
asset is derecognised.
(a) Mine properties
Mine properties include:
capitalised development and production stripping costs;
–
– mineral rights acquired.
The initial cost of mine properties includes the purchase price or construction cost, any costs directly attributable to bringing the asset into
operation, and borrowing costs (where relevant for qualifying assets). The purchase price or construction cost is the aggregate amount paid and
the fair value of any other consideration given to acquire the asset.
Mine properties also consist of the fair value attributable to mineral reserves and the portion of mineral resources considered to be probable of
economic extraction at the date of acquisition. When a mine construction project moves into the production phase, the capitalisation of certain
mine construction costs ceases, and costs are either regarded as part of the cost of inventory or expensed, except for costs which qualify for
capitalisation.
(i) Capitalised development and production stripping costs
The process of removing overburden and other waste materials to access mineral deposits is known as stripping. Stripping is necessary to obtain
access to mineral deposits and occurs throughout the life of an open-pit mine. Stripping is classified as either development stripping or production
stripping. Development and production stripping costs are recognised as part of mine properties in property, plant and equipment.
Development stripping costs are initial overburden removal costs incurred to obtain access to mineral deposits that will be commercially produced.
These costs are capitalised when it is probable that future economic benefits in the form of access to mineral ores will flow to the Group and
costs can be measured reliably. Stripping costs incurred during the development phase of a mine are usually capitalised as part of the depreciable
cost of building, developing and constructing the mine.
Production stripping costs are post initial overburden removal costs incurred during the normal course of production, which are usually incurred
after the first saleable minerals have been extracted from the component of the ore body. Costs are capitalised where production stripping activity
results in improved access to future ore and the following criteria are met:
–
–
–
the production stripping activity improves access to a specific component of the ore body and it is probable that economic benefits
arising from the improved access to future ore production will be realised;
the component of the ore body for which access has been improved can be identified; and
costs associated with that component can be measured reliably.
Production stripping costs are allocated between the inventory produced and the production stripping asset using a life-of-component waste-to-
ore (or mineral contained) strip ratio. When the current strip ratio is greater than the estimated life-of-component ratio, a portion of the stripping
costs are capitalised to the production stripping asset.
(b) Capital works in progress
Capital works in progress are measured at cost inclusive of associated on-costs and charges. Costs are only capitalised when it is probable that
future economic benefits will flow to the Group and costs can be measured reliably.
All assets included in capital works in progress are reclassified to other categories within property, plant and equipment when the asset is available
and ready for use in the manner intended.
(c) Right-of-use assets
Right-of-use assets are presented within the respective categories of property, plant and equipment according to the nature of the underlying
asset leased. Refer to Note 19 for details on the Group’s right-of-use assets and corresponding lease liabilities.
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12. Property, Plant and Equipment (continued)
(d) Exploration and evaluation expenditure
Exploration and evaluation expenditure is capitalised where it is considered likely to be recoverable or where the activities have not reached a
stage that permits a reasonable assessment of the existence of reserves.
Exploration is defined as the search for potential mineralisation after the Group has obtained legal rights to explore in a specific area and includes
topographical, geological, geochemical and geophysical studies and exploratory drilling, trenching and sampling.
Evaluation is defined as the determination of the technical feasibility and commercial viability of a particular prospect. Activities conducted during
the evaluation phase include determination of the volume, grade and quality of the deposit, examination and testing of extraction methods and
metallurgical or treatment processes, surveys of transportation and infrastructure requirements, and market and finance studies.
Recoverability of the carrying value of exploration assets is dependent on the successful exploration and development of projects, or alternatively,
through the sale of the areas of interest.
Exploration and evaluation expenditure incurred prior to the establishment of a commercially viable mineral deposit is expensed as incurred,
except for initial payments for the right to explore (including lease acquisition costs). Accumulated costs in relation to an abandoned area are
written off in full against profit or loss in the year in which the decision to abandon the area is made.
(e)
Impairment of assets
At the end of each reporting period, the Group assesses whether there is any indication that an asset may be impaired. The assessment will
include consideration of external and internal sources of information. If such an indication exists, the recoverable amount of the asset, being the
higher of the asset’s fair value less costs to sell and value in use, is compared to the asset’s carrying value. Any excess of the asset’s carrying
value over its recoverable amount is recognised immediately in profit or loss. Where it is not possible to estimate the recoverable amount of an
individual asset, the Group estimates the recoverable amount of the cash generating unit to which the asset belongs.
(f) Depreciation and amortisation
The carrying values of property, plant and equipment are depreciated to their estimated residual values over the estimated useful lives of the
specific assets concerned. Estimates of residual values and useful lives are reassessed annually and any change in estimate is considered in the
determination of remaining depreciation charges. Depreciation commences on the date of commissioning.
The major categories of property, plant and equipment are depreciated on a units of production or straight-line basis using the estimated lives
indicated below. Where assets are dedicated to a mine or lease and are not readily transferable, the useful life of the asset is subject to the lesser
of the asset’s useful life and the life of the mine or lease.
Asset category
Buildings
Land
Mine properties (including mineral rights)
Plant and equipment
Right-of-use assets
Depreciation method
2 to 20 years straight-line
Not applicable
Based on ore reserves on a units of production basis
2 to 20 years straight-line
Based on the shorter of the asset’s useful life or term of the lease (straight-line)
Key judgements and estimates
Judgement applied in determining ore reserves and mineral resources
The Group estimates its ore reserves and mineral resources based on information compiled by Competent Persons in accordance with the
Joint Ore Reserves Committee (JORC) code. Estimation requires assumptions about future commodity prices and demand, exchange rates,
production costs, transport costs, mine closure and rehabilitation costs, recovery rates, discount rates and, in some instances, the renewal of
mining licences. There are many uncertainties in the estimation process and assumptions that are valid at the time of estimation may change
significantly when new information becomes available. New geological or economic data, or unforeseen operational issues, may change
estimates of ore reserves and mineral resources. The Group uses judgment as to when to include mineral resources in accounting estimates.
Useful economic lives of assets
The determination of useful lives, residual values and depreciation methods is reviewed at each reporting period and involves estimates and
assumptions. Any changes to useful lives or any other estimates or assumptions may impact prospective depreciation rates and asset carrying
values. The Group applies judgement in determining the useful economic lives of assets and whether any indicators of impairment are present
based on internal and external sources of information available. The table above summarises the depreciation methods and rates applied to
major categories of property, plant and equipment.
Sayona | Annual Report 2023
79
Notes to the Financial Statements
13. Intangible Assets
Cost
At the beginning of the financial year
Disposals
At the end of the financial year
Accumulated amortisation
At the beginning of the financial year
At the end of the financial year
Net book value at the end of the financial year
Recognition and measurement
2023
$’000
186
(185)
1
(1)
(1)
-
2022
$’000
186
-
186
(1)
(1)
185
The Group capitalises amounts paid for the acquisition of identifiable intangible assets where it is considered that future economic benefits will
flow to the Group and the cost of the asset can be measured reliably. Intangible assets held by the Group are stated at acquisition cost, net of any
related accumulated amortisation and impairment charges.
(a) Goodwill
Where the fair value of consideration paid for a business combination exceeds the fair value of the Group’s share of the identifiable net assets
acquired, the difference is treated as purchased goodwill. Where the fair value of the Group’s share of the identifiable net assets acquired exceeds
the fair value of consideration paid, the difference is recognised in the Consolidated Statement of Profit or Loss. Goodwill is not amortised;
however, its carrying value is assessed annually against its recoverable amount.
(b) Other intangible assets
Amounts paid for the acquisition of identifiable intangible assets, such as software and licences, are capitalised at the fair value of consideration
paid and are recorded at cost less accumulated amortisation and impairment charges. Identifiable intangible assets with a finite life are amortised
on a straight-line basis over their expected useful life from when the asset is ready for use.
14. Trade and Other Payables
Trade payables
Other payables to associated entities
Other payables
Total trade and other payables
(1)
Comprising:
Current
Non-current
2023
$’000
18,682
681
10,134
29,497
29,497
-
2022
$’000
5,146
17,059
1,776
23,981
23,981
-
(1)
At 30 June 2022, Piedmont Lithium Québec Holdings Inc. had agreed to joint funding advances in relation to refurbishment activities at NAL. The outstanding amount has
been treated as an equity loan, and represents Piedmont’s proportionate share of contributed cash advances to the joint venture. The prior year balance has been reclassified
to share capital during the year.
Recognition and measurement
Trade and other payables represent the liabilities for goods and services received by the Group that remain unpaid at the end of the reporting
period. The balance is recognised as a current liability with amounts normally paid within 30 days of recognition of the liability. Amounts are
initially recognised at fair value, and subsequently measured at amortised cost. The carrying value of these trade and other payables is considered
to approximate fair value due to the short-term nature of the payables.
The Group’s obligations for short-term employee benefits are recognised in other payables.
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Notes to the Financial Statements
15. Other Liabilities
Deferred income
(1)
Total other liabilities
Comprising:
Current
Non-current
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2023
$’000
13,956
13,956
-
13,956
2022
$’000
11,504
11,504
-
11,504
(1)
As part of the Group’s acquisition of Moblan, a royalty agreement was entered into with Lithium Royalty Corp. (LRC). Under the terms of the agreement, royalties are payable
to LRC based on tonnages produced from properties acquired as part of the Moblan Lithium Project. Royalties are based on either Gross Overriding Revenue (GOR) or Net
Smelter Return (NSR), depending on the property. The Group amortises royalty advances based on tonnages produced and the contractual obligations set out in the
agreement.
16. Provisions
Employee entitlements
Mine closure and rehabilitation
Total provisions
Comprising:
Current
Non-current
The movement in provisions during the year is as follows:
Year ended 30 June 2023
At the beginning of the financial year
Charge/(credit) for the year to the Consolidated Statement of Profit or Loss:
Underlying charge for the year
Released during the year
Foreign exchange rate differences
At the end of the financial year
Year ended 30 June 2022
At the beginning of the financial year
Acquisition of subsidiaries
Charge/(credit) for the year to the Consolidated Statement of Profit or Loss:
(1)
Underlying charge for the year
Released during the year
Foreign exchange rate differences
At the end of the financial year
2023
$’000
846
35,254
36,100
846
35,254
Employee
entitlements
$’000
Mine
closure and
rehabilitation
$’000
324
31,085
1,354
(849)
17
846
3,925
-
244
35,254
Employee
entitlements
$’000
Mine
closure and
rehabilitation
$’000
117
-
266
(59)
-
324
-
30,133
-
-
952
31,085
2022
$’000
324
31,085
31,409
324
31,085
Total
$’000
31,409
5,279
(849)
261
36,100
Total
$’000
117
30,133
266
(59)
952
31,409
(1)
On 27 August 2021, the Group acquired 100% of the issued capital of North American Lithium Inc. (NAL). The amount reported reflects the fair value of the provision for mine
closure and rehabilitation at the date of acquisition.
Sayona | Annual Report 2023
81
Notes to the Financial Statements
16. Provisions (continued)
Recognition and measurement
Provisions are recognised when the Group has a legal or constructive obligation for which it is probable that an outflow of economic benefits will
result, and that outflow can be reliably measured.
Provisions are measured using the best estimate of the amounts required to settle the obligation at the end of the reporting period.
(a) Employee entitlements
Employee entitlements expected to be settled within twelve months are presented as current employee benefit obligations. Liabilities for salaries
and wages, including non-monetary benefits, and annual leave are recognised in respect of employees’ services up to the end of the reporting
period and are measured at the amounts expected to be paid when the liabilities are settled.
The non-current provision for employee entitlements is recognised for employees’ annual leave and long service leave entitlements not expected
to be settled wholly within twelve months after the end of the reporting period in which the employees render the related service. Other non-current
employee benefits are measured at the present value of the expected future payments to be made to employees. Expected future payments
incorporate anticipated future wage and salary levels, durations of service and employee departures and are discounted at rates determined by
reference to market yields at the end of the reporting period that have maturity dates that approximate the terms of the obligations. Any
remeasurements for changes in assumptions of obligations for other non-current employee benefits are recognised in profit or loss in the period
in which the changes occur.
(b) Mine closure and rehabilitation
The mining and processing activities of the Group normally give rise to obligations for site closure or rehabilitation. Closure and rehabilitation
works can include facility decommissioning and dismantling, removal or treatment of waste materials, and site and land rehabilitation in
accordance with local laws and regulations and clauses of the permits.
Closure and rehabilitation provisions are recognised at the time that environmental disturbance occurs. When the extent of disturbance increases
over the life of an operation, the provision is increased accordingly. Costs included in the provision encompass all closure and rehabilitation activity
expected to occur progressively over the life of the operation and at, or after, the time of closure, for disturbance existing at the reporting date.
Routine operating costs that may impact the ultimate closure and rehabilitation activities, such as waste material handling conducted as an
integral part of a mining or production process, are not included in the provision. Costs arising from unforeseen circumstances, such as the
contamination caused by unplanned discharges, are recognised as an expense and liability when the event gives rise to an obligation which is
probable and capable of reliable estimation.
Closure and rehabilitation provisions are measured at the expected value of future cash flows, discounted to their present value and determined
according to the probability of alternative estimates of cash flows occurring for each operation.
When provisions for mine closure and rehabilitation are initially recognised, the corresponding cost is capitalised as an asset, representing part
of the cost of acquiring the future economic benefits of the operation. The capitalised cost of closure and rehabilitation activities is recognised in
property, plant and equipment and depreciated accordingly.
Closure and rehabilitation provisions are also adjusted for changes in costs and estimates. Any adjustments are made prospectively and are
accounted for as a change in the corresponding capitalised asset, except where a reduction in the provision is greater than the depreciated
capitalised cost of the related assets, in which case the carrying value is reduced to nil and the remaining adjustment is recognised first against
other items in property, plant and equipment, and subsequently to the Consolidated Statement of Profit or Loss. Adjustments to the estimated
amount and timing of future closure and rehabilitation cash flows are a normal occurrence in light of the significant judgements and estimates
involved.
Key judgements and estimates
Mine closure and rehabilitation provision on acquisition of North American Lithium
The provision recognised at the date of acquisition represents the net present value of mine closure and rehabilitation costs that are expected
to be incurred up to the time when the producing mine ceases operations. The provision is based on the Group’s internal estimates and modified
by the Ministere de I'Energie et des Ressources Naturelles (MERN). A discount rate of 10% has been applied to reflect the inherent risk in the
mining operation.
Assumptions have been made based on the current economic environment, which management believe are a reasonable basis upon which to
estimate the future liability. These estimates are reviewed regularly to take into account any material changes to the assumptions. Actual
rehabilitation costs will ultimately depend on market conditions at the relevant time. The timing of closure and rehabilitation will most likely
depend on when the mine ceases to produce at economically viable rates.
Mine restoration costs are uncertain, and cost estimates can vary in response to many factors including estimates of the extent of rehabilitation
activities, technological changes, regulatory changes, cost increases including inflationary impacts and changes in discount rates. The
provision at reporting date represents management’s best estimate of the present value of future rehabilitation costs.
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Notes to the Financial Statements
Capital Structure and Financial Management
This section details the capital structure and related financing activities of the Group.
17. Cash and Cash Equivalents
Cash
Short-term deposits
Total cash and cash equivalents
(1)
2023
$’000
106,458
104,661
211,119
2022
$’000
184,509
50
184,559
(1)
Cash and cash equivalents include $54.7 million (2022: Nil) which is restricted by legal or contractual arrangements.
Cash and cash equivalents include cash on hand, deposits available on demand with banks and other short term highly liquid investments with
original maturities of three months or less.
18. Interest Bearing Liabilities
(1)
Lease liabilities
Non-convertible redeemable cumulative preference shares
Other interest bearing liabilities
Total interest bearing liabilities
Comprising:
Current
Non-current
(1)
Refer to Note 19 for further details on the Group’s leases.
Recognition and measurement
2023
$’000
6,253
24,849
112
31,214
1,944
29,270
2022
$’000
10
23,462
-
23,472
10
23,462
All borrowings are initially recognised at their fair value net of directly attributable transaction costs. Subsequent to initial recognition, interest
bearing liabilities are measured at amortised cost using the effective interest method. Gains and losses are recognised in the Consolidated
Statement of Profit or Loss when the liabilities are derecognised. Interest bearing liabilities are classified as current liabilities, except when the
Group has an unconditional right to defer settlement for at least twelve months after the reporting date, in which case the liabilities are classified
as non-current.
A reconciliation of movements in interest bearing liabilities and other financial liabilities to cash flows arising from financing activities is set out
in Note 22 (f).
(a) Non-convertible redeemable cumulative preference shares
On 27 August 2021, as part of the acquisition of North American Lithium, the Group exchanged Investissement Québec’s (IQ) second ranking debt
of C$63 million for twenty million non-convertible redeemable cumulative preference shares held by NAL at a par value of C$1.00 per share. The
shares may be redeemed at the option of NAL or at the option of IQ, subject to satisfaction of various performance hurdles.
The terms of the preference shares are detailed below:
–
–
–
–
–
interest is accrued or paid at 5% per annum;
the shares cannot be converted to equity at any time;
preference shareholders are not entitled to dividends or to vote at shareholder meetings;
redemption commences in accordance with the NAL Constitution and Governance Agreement once the mine is in commercial operation
and the redemption term is up to ten years after the first anniversary of the issue of these shares; and
in the event of default, liquidation, or receivership, IQ rank before the ordinary shareholders in priority.
The preference shares are recorded at issue price plus accrued interest. Given the nature and conditions impacting on potential redemption terms,
the fair value assigned to the preference shares is their face value.
Sayona | Annual Report 2023
83
Notes to the Financial Statements
19. Leases
The nature of the Group’s leases predominantly relates to assets and equipment supporting the operations in line with the Group’s principal
activities, as well as real estate in the form of office premises. Lease terms range from three to five years. Lease contracts are negotiated on an
individual basis and contain a wide range of terms and conditions.
(a) Amounts recognised in the Consolidated Statement of Financial Position
The Consolidated Statement of Financial Position includes the following amounts relating to leases:
Right-of-use assets recognised in property, plant and equipment
Land and buildings
Cost
Accumulated depreciation
Net book value
Plant and equipment
Cost
Accumulated depreciation
Net book value
Total right-of-use assets
Lease liabilities
Land and buildings – current
Land and buildings – non-current
Plant and equipment – current
Plant and equipment – non-current
Total lease liabilities
2023
$’000
2022
$’000
1,522
(369)
1,153
5,387
(449)
4,938
6,091
349
892
1,595
3,417
6,253
124
(114)
10
-
-
-
10
10
-
-
-
10
Right-of-use asset additions during the year were $6.9 million (2022: Nil).
Lease liabilities have been measured at the present value of the remaining lease payments over the term of the lease. The present value has been
determined using discount rates ranging between 4.50% and 10% (2022: 4.50%).
(b) Amounts recognised in the Consolidated Statement of Profit or Loss
The Consolidated Statement of Profit or Loss includes the following amounts relating to leases:
Depreciation of right-of-use assets
Interest on lease liabilities
Recognition and measurement
2023
$’000
811
148
2022
$’000
38
1
At inception of a contract, the Group assesses whether a contract is, or contains, a lease. A contract is, or contains, a lease if the contract conveys
the right to control the use of an identified asset for a period of time in exchange for consideration. All contracts that are classified as short-term
leases (leases with a remaining lease term of twelve months or less) and leases of low value assets are recognised as an operating expense on
a straight-line basis over the term of the lease.
Right-of-use assets
If a lease is present, a right-of-use asset and corresponding lease liability is recognised at the commencement date of the lease. The right-of-use
asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the
commencement date, plus any initial direct costs incurred and estimated future restoration costs, less any lease incentives received. The right-of-
use asset is subsequently measured at cost less accumulated depreciation, impairment charges and any adjustments for remeasurement of the
lease liability.
Right-of-use assets are depreciated over the term of the lease or useful life of the underlying asset, whichever is the shortest. Where a lease
transfers ownership of the underlying asset or the cost of the right-of-use asset indicates the Group is likely to exercise a purchase option, the
specific asset is depreciated over the useful life of the underlying asset.
Right-of-use assets are recognised in property, plant and equipment in the Consolidated Statement of Financial Position.
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19. Leases (continued)
Lease liabilities
Lease liabilities are recognised within interest bearing liabilities in the Consolidated Statement of Financial Position. The lease liability is initially
measured at the present value of the lease payments still to be paid at commencement date.
Lease payments are discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the lessee’s incremental
borrowing rate. The lessee’s incremental borrowing rate is the rate of interest that a lessee would have to pay to borrow the funds necessary to
obtain an asset of a similar value to the right-of-use asset in a similar economic environment and with similar terms, conditions and security.
The lease liability is subsequently measured at amortised cost using the effective interest method. It is remeasured when there is a change in
future lease payments arising from a change in rate or index, if there is a change in the Group’s estimate of the amount expected to be payable
under a residual guarantee, or if the Group changes its assessment of whether it will exercise a purchase, extension or termination option. When
the lease liability is remeasured, a corresponding adjustment is made to the carrying value of the right-of-use asset, or is recorded in the
Consolidated Statement of Profit or Loss if the carrying value of the right-of-use asset has been reduced to nil.
20. Financial Income and Expenses
Financial income
Interest on bank accounts
Net foreign exchange gains
Total financial income
Financial expenses
Interest on lease liabilities
Interest on preference shares
Net foreign exchange losses
Other financial expenses
Total financial expenses
Net financial income/(expense)
21. Other Financial Assets
Investments in listed entities
Consolidated Lithium Metals Inc.
Troilus Gold Corporation
(2)
(1)
Total other financial assets
Comprising:
Current
Non-current
2023
$’000
2,817
13,510
16,327
148
1,177
-
181
1,506
14,821
2023
$’000
2,296
10,647
12,943
-
12,943
2022
$’000
111
-
111
1
927
2,109
-
3,037
(2,926)
2022
$’000
-
-
-
-
-
(1)
(2)
On 14 November 2022, the Group acquired a 9.99% shareholding in Consolidated Lithium Metals Inc. (TSXV: CLM) for C$1.5 million through a private placement. The shares
were acquired as part of the Group’s agreement with Consolidated Lithium Metals Inc. to acquire claims in the Vallée Lithium Project.
On 17 November 2022, the Group completed the acquisition of a 9.26% shareholding in Troilus Gold Corporation (TSXV: TLG) for C$10 million. The acquisition was completed
in two tranches totalling 20.4 million shares at C$0.49 per share. The shares were acquired as part of the Group’s agreement with Troilus Gold Corporation to acquire claims
near the Moblan Lithium Project.
Recognition and measurement
The Group has elected at initial recognition to classify equity investments as financial assets at fair value through other comprehensive income
(FVOCI). The equity securities are not held for trading and are strategic investments for which the Group considers this classification to be more
appropriate.
Changes in fair value are accumulated in a separate reserve within equity. The cumulative amount is transferred to the Consolidated Statement
of Profit or Loss on disposal of the relevant equity securities.
The fair value of the Group’s financial assets at FVOCI is estimated based on quoted market prices at the reporting date and classified as Level 1
on the fair value hierarchy as detailed in Note 22 (e).
Sayona | Annual Report 2023
85
Notes to the Financial Statements
22. Financial Instruments and Risk Management
The Group is exposed to market, liquidity and credit risk through its financial instruments, which comprise cash and cash equivalents, receivables,
financial assets, other assets and liabilities, payables and interest bearing liabilities. The main purpose of these financial instruments is to fund
the principal activities of the Group.
The Board of the Company meets on a regular basis to analyse exposure and evaluate treasury management strategies in the context of the most
recent economic conditions and forecasts. The Board has overall responsibility for the establishment and oversight of the Group's risk
management framework. Management is responsible for developing and monitoring the risk management policies.
(a) Market risk
Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market
risk comprises interest rate risk, foreign currency risk and other price risk, such as equity price risk and commodity price risk. The objective of
market risk management is to manage market risk exposures to protect profitability and return on assets.
(i)
Interest rate risk
The Group is exposed to interest rate risk on its cash and cash equivalents, other assets and interest bearing liabilities from the possibility that
changes in interest rates will affect future cash flows or the fair value of financial instruments.
The Group’s net exposure to interest rate risk at the reporting date is as follows:
Financial assets
Cash and cash equivalents
Other assets
Net exposure
2023
$’000
211,119
31,993
243,112
2022
$’000
184,559
13,120
197,679
Sensitivity analysis
The following table demonstrates the sensitivity to a 100 basis point change in interest rates, with all other variables remaining constant:
+100 basis point change in interest rates
-100 basis point change in interest rates
(ii) Foreign currency risk
Effect
on profit
after tax
2023
$’000
1,702
(1,702)
Effect
on profit
after tax
2022
$’000
1,483
(149)
Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates.
The Group operates internationally and is exposed to foreign currency risk arising from currency movements, primarily in respect of transactions
and instruments in Canadian and United States (US) dollars. No derivative financial instruments are employed to mitigate the exposed risks.
The Group's net exposure to foreign currency risk (in Australian dollars) at the reporting date is as follows:
Canadian
dollar risk
exposure
2023
$’000
Canadian
dollar risk
exposure
2022
$’000
US dollar
risk
exposure
2023
$’000
US dollar
risk
exposure
2022
$’000
106,120
19,927
33,740
(24,147)
(30,923)
(1,946)
102,771
25,271
10,530
11,660
(5,385)
(23,462)
(28,563)
(9,949)
975
-
-
(2,300)
-
(12,009)
(13,334)
1,094
-
-
-
-
-
1,094
Financial assets
Cash and cash equivalents
Trade and other receivables
Other assets
Financial liabilities
Trade and other payables
Interest bearing liabilities
Other liabilities
Net exposure
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Notes to the Financial Statements
22. Financial Instruments and Risk Management (continued)
Sensitivity analysis
Based on the Group’s net financial assets and liabilities as at 30 June, a weakening of the Australian dollar against these currencies as illustrated
in the table below, with all other variables held constant, would have the following effect on the Group’s profit or loss after tax:
5% movement in Canadian dollar
5% movement in United States dollar
(b) Liquidity risk
Effect
on profit
after tax
2023
$’000
3,597
467
Effect
on profit
after tax
2022
$’000
(373)
41
Liquidity risk is the risk that the Group may not be able to settle or meet its obligations as they fall due. This risk is managed by ensuring, to the
extent possible, that there is sufficient liquidity in place, without incurring unacceptable losses or risking damage to the Group's reputation. The
Board manages liquidity risk by sourcing long-term funding, primarily through equity sources.
Financial asset and financial liability maturity analysis
The following table shows an undiscounted contractual maturity analysis for financial assets and financial liabilities and reflects management's
expectations with respect to realisation of financial assets and financial liabilities and timing of termination:
Year ended 30 June 2023
Financial assets
Cash and cash equivalents
Trade and other receivables
Other financial assets
Other assets
Total financial assets
Financial liabilities
Trade and other payables
Interest bearing liabilities
Lease liabilities
Other liabilities
Total financial liabilities
Net financial instruments
Year ended 30 June 2022
Financial assets
Cash and cash equivalents
Trade and other receivables
Other assets
Total financial assets
Financial liabilities
Trade and other payables
Interest bearing liabilities
Lease liabilities
Other liabilities
Total financial liabilities
Net financial instruments
Weighted
average
interest rate
%
2.68%
-
-
2.69%
-
5.00%
9.74%
-
Weighted
average
interest rate
%
0.06%
-
0.67%
-
5.00%
4.50%
-
1 year
or less
$’000
211,119
19,298
-
31,993
262,410
29,497
-
1,944
-
31,441
1 to 5 years
$’000
More than
5 years
$’000
-
-
-
-
-
-
112
4,309
-
4,421
-
-
12,943
-
12,943
-
24,849
-
13,956
38,805
Total
$’000
211,119
19,298
12,943
31,993
275,353
29,497
24,961
6,253
13,956
74,667
230,969
(4,421)
(25,862)
200,686
1 year
or less
$’000
184,559
9,681
13,120
207,360
23,981
-
10
-
23,991
183,369
1 to 5 years
$’000
More than
5 years
$’000
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
23,462
-
11,504
34,966
Total
$’000
184,559
9,681
13,120
207,360
23,981
23,462
10
11,504
58,957
(34,966)
148,403
Sayona | Annual Report 2023
87
Notes to the Financial Statements
22. Financial Instruments and Risk Management (continued)
(c) Credit risk
Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in a financial loss to the Group. Credit risk arises
from exposures to deposits with financial institutions, trade and other receivables and deposits. Management monitors credit risk by actively
assessing the rating quality and liquidity of counterparties.
The Group's maximum exposure to credit risk at reporting date is $10.9 million (2022: $3.7 million).
(d) Recognition and measurement
Initial recognition and measurement
Financial assets and financial liabilities are recognised when the Group becomes a party to the contractual provisions to the instrument. For
financial assets, this is the date that the Group commits itself to either the purchase or sale of the asset (i.e. trade date accounting is adopted).
Financial instruments are initially measured at fair value plus transaction costs, except where the instrument is classified at fair value through
profit or loss, in which case transaction costs are expensed to profit or loss immediately.
Subsequent measurement
(i)
Subsequent measurement of financial assets
Financial assets are subsequently measured at amortised cost. Measurement is based on two primary criteria:
–
–
the contractual cash flow characteristics of the financial asset; and
the business model for managing the financial assets.
A financial asset that meets the following conditions is subsequently measured at amortised cost:
–
–
the financial asset is managed solely to collect contractual cash flows; and
the contractual terms within the financial asset give rise to cash flows that are solely payments of principal and interest on the principal
amount outstanding on specified dates.
(ii) Subsequent measurement of financial liabilities
Financial liabilities are subsequently measured at amortised cost using the effective interest method. The effective interest method is a method
of calculating the amortised cost of a debt instrument and allocating interest expense in profit or loss over the relevant period. The effective
interest rate is the internal rate of return of the financial asset or liability. That is, the rate that exactly discounts the estimated future cash flows
through the expected life of the instrument to the net carrying value at initial recognition.
Derecognition
Derecognition refers to the removal of a previously recognised financial asset or financial liability from the Consolidated Statement of Financial
Position.
(i)
Derecognition of financial assets
A financial asset is derecognised when the holder's contractual rights to its cash flows expire, or the asset is transferred in such a way that all the
risks and rewards of ownership are substantially transferred.
All of the following criteria need to be satisfied for derecognition of a financial asset:
–
–
–
the right to receive cash flows from the asset has expired or been transferred;
all risk and rewards of ownership of the asset have been substantially transferred; and
the Group no longer controls the asset (i.e. the Group has no practical ability to make a unilateral decision to sell the asset to a third
party).
On derecognition of a financial asset measured at amortised cost, the difference between the asset's carrying value and the sum of the
consideration received and receivable is recognised in profit or loss.
(ii) Derecognition of financial liabilities
A liability is derecognised when it is extinguished (i.e. when the obligation in the contract is discharged, cancelled or expires). An exchange of an
existing financial liability for a new one with substantially modified terms, or a substantial modification to the terms of a financial liability is treated
as an extinguishment of the existing liability and recognition of a new financial liability.
The difference between the carrying value of the financial liability derecognised and the consideration paid and payable, including any non-cash
assets transferred or liabilities assumed, is recognised in profit or loss.
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Notes to the Financial Statements
22. Financial Instruments and Risk Management (continued)
Impairment
The Group recognises a loss allowance for expected credit losses, using the simplified approach under AASB 9, which requires the recognition of
lifetime expected credit loss at all times.
(e) Fair values
The Group measures some of its assets and liabilities at fair value on either a recurring or non-recurring basis after initial recognition, depending
on the requirements of the applicable Accounting Standard.
The fair value of cash and cash equivalents and non-interest bearing financial assets and liabilities approximates their carrying value due to their
short-term maturity.
Fair value is the price the Group would receive to sell an asset or would pay to transfer a liability in an orderly (i.e. unforced) transaction between
independent, knowledgeable and willing market participants at the measurement date.
The aggregate fair values and carrying values of financial assets and liabilities are disclosed in the Consolidated Statement of Financial Position.
Fair values are materially in line with carrying values.
Fair value measurement
The carrying value of financial assets and liabilities measured at fair value is principally calculated based on inputs other than quoted prices that
are observable for these financial assets or liabilities, either directly (i.e. as unquoted prices) or indirectly (i.e. derived from prices). Where no price
information is available from a quoted market source, alternative market mechanisms or recent comparable transactions, fair value is estimated
based on the Group’s views on relevant future prices, net of valuation allowances to accommodate liquidity, modelling and other risks implicit in
such estimates.
The Group applies the following hierarchy for financial assets and liabilities carried at fair value:
Fair value hierarchy
Valuation inputs
Level 1
Level 2
Level 3
Based on unadjusted quoted prices in active markets for identical financial assets and liabilities.
Based on inputs other than quoted prices included within Level 1 that are observable for the financial asset or
liability, either directly (i.e. as unquoted prices) or indirectly (i.e. derived from prices).
Based on inputs not observable in the market using appropriate valuation models, including discounted cash flow
modelling.
Where the carrying value of financial assets and liabilities do not approximate their fair value, the fair value has been measured based on inputs
in the hierarchy as follows:
At 30 June 2023
Financial assets at FVOCI
Total
Level 1
$’000
12,943
12,943
Level 2
$’000
Level 3
$’000
-
-
-
-
Total
$’000
12,943
12,943
The Group did not measure any financial assets or liabilities at fair value on a non-recurring basis as at 30 June 2023. There were no transfers
between levels of the hierarchy during the year.
(f) Changes in liabilities from financing activities
The movement in the Group’s liabilities from financing activities during the year is as follows:
Year ended 30 June 2023
At the beginning of the financial year
Cash movements
Non-cash movements
At the end of the financial year
Year ended 30 June 2022
At the beginning of the financial year
Cash movements
Non-cash movements
At the end of the financial year
Interest
bearing
liabilities
$’000
Preference
shares
$’000
Lease
liabilities
$’000
-
110
2
112
-
-
-
-
23,462
-
1,387
24,849
-
-
23,462
23,462
10
(776)
7,019
6,253
53
(43)
-
10
Total
$’000
23,472
(666)
8,408
31,214
53
(43)
23,462
23,472
Sayona | Annual Report 2023
89
Notes to the Financial Statements
23. Share Capital
Ordinary shares
Ordinary shares are classified as equity. Transaction costs (net of tax, where the deduction can be utilised) arising on the issue of ordinary shares
are recognised in equity as a reduction of the share proceeds received.
Where share application monies have been received but the shares have not been issued, these monies are shown as a payable in the Consolidated
Statement of Financial Position.
The movement in fully paid ordinary shares during the year is as follows:
At the beginning of the financial year
Shares issued
Transaction costs associated with share issues
2023
No. shares
8,246,752,670
1,792,385,354
-
2022
No. shares
5,153,695,375
3,093,057,295
-
At the end of the financial year
10,039,138,024
8,246,752,670
2023
$’000
504,255
276,404
(9,959)
770,700
2022
$’000
128,728
392,475
(16,948)
504,255
Ordinary shares participate in dividends and the proceeds on winding up of the parent entity in proportion to the number of shares held. At
shareholders' meetings, each ordinary share is entitled to one vote when a poll is called, otherwise each shareholder has one vote on a show of
hands.
The Company does not have authorised capital or par value in respect of its issued shares.
(a) Significant share issues during the year
On 17 November 2022, the Group announced an agreement with Troilus Gold Corporation to acquire 1,824 claims located near the Moblan Lithium
Project for a purchase consideration of $44.5 million. Pursuant to this agreement, the Group issued 184,331,797 fully paid ordinary shares to
Troilus Gold Corporation to settle the transaction.
On 24 November 2022, the Group issued 155 million shares to Acuity Capital to be held as collateral against the At-the-Market (ATM) facility,
bringing the total security held by Acuity Capital to 250 million shares. Shares were issued following an agreement to increase the facility limit
from $50 million to $200 million. These shares were issued at no cost and are similar to treasury shares.
On 7 March 2023, the Group entered into a subscription agreement with PearTree Securities Inc. for the issuance of 174,459,177 fully paid ordinary
shares at an issue price of $0.315 per share for aggregate gross proceeds of $54.9 million using the flow-through-share (FTS) provisions under
Canadian tax law. The gross proceeds received by the Group will be used by 31 December 2024 to incur Canadian exploration expenses (CEE)
that qualify as flow through critical mineral mining expenditures as defined in the Income Tax Act (Canada).
On 5 June 2023, the Group completed the first tranche of a $200 million placement to institutional, professional and sophisticated investors,
resulting in the issuance of 940,384,891 fully paid ordinary shares at an issue price of $0.18 per share for aggregate gross proceeds of $169.3
million. The second tranche totalling $30.7 million was completed on 19 July 2023.
Options
Options are classified as equity and issue proceeds are taken up in the share based payments reserve. Transaction costs (net of tax, where the
deduction can be utilised) arising on the issue of options are recognised in equity as a reduction of the option proceeds received.
The movement in options during the year is as follows:
At the beginning of the financial year
Granted during the year
Exercised during the year
Lapsed during the year
At the end of the financial year
Listed options
Unlisted options
2023
No. options
308,290,518
-
(304,196,342)
(4,094,176)
-
2022
No. options
474,857,645
-
(166,567,127)
-
308,290,518
2023
No. options
42,000,000
6,234,482
(6,000,000)
-
42,234,482
2022
No. options
8,000,000
53,200,000
(19,200,000)
-
42,000,000
Capital management policy
The Group has been funded predominantly by equity up to the date of this report. Management controls the capital of the Group with the aim of
generating long-term shareholder value and ensuring the Group can fund its operations and continue as a going concern. The Group’s capital is
managed by assessing the Group’s financial risks and adjusting its capital structure in response to changes in these risks and market conditions.
None of the Group’s entities are currently subject to externally imposed capital requirements. In addition, there were no changes in the Group’s
approach to capital management during the year.
90
Notes to the Financial Statements
24. Reserves
Year ended 30 June 2023
At the beginning of the financial year
Financial assets at fair value through other comprehensive income
Foreign exchange differences on translation of foreign operations
Share based payments
Transfers within equity to retained earnings
At the end of the financial year
Year ended 30 June 2022
Restated *
At the beginning of the financial year
Foreign exchange differences on translation of foreign operations
Share based payments
Transfers and other movements
At the end of the financial year
*
Refer to Note 33 for details on restatement of prior period comparatives.
Operating
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Additional
Information
Financial
asset
reserve
$’000
-
(1,544)
-
-
-
(1,544)
-
-
-
-
-
Foreign
currency
translation
reserve
$’000
Share
based
payments
reserve
$’000
11,789
-
(3,462)
-
-
8,327
195
11,549
-
45
11,789
1,762
-
-
4,320
(92)
5,990
109
-
3,040
(1,387)
1,762
Total
$’000
13,551
(1,544)
(3,462)
4,320
(92)
12,773
304
11,549
3,040
(1,342)
13,551
Financial asset reserve
The financial asset reserve represents the revaluation of financial assets recognised at fair value through other comprehensive income (FVOCI).
The Group transfers amounts from this reserve to retained earnings when the relevant equity securities are derecognised.
Foreign currency translation reserve
Exchange differences arising on translation of foreign operations are recognised in Consolidated Statement of Other Comprehensive Income and
accumulated in a separate reserve within equity. The cumulative amount is transferred to the Consolidated Statement of Profit or Loss on disposal
of the foreign operation.
Share based payments reserve
The share based payments reserve represents the fair value of share based payments provided to both employees and non-employees. Refer to
Note 29 for details on share based payments.
Sayona | Annual Report 2023
91
Notes to the Financial Statements
Group and Related Party Information
This section contains information on the structure and related parties of the Group and how it affects the financial performance and position of
the Group.
25. Subsidiaries
Subsidiaries are entities controlled by the Company. Control exists where the Company is exposed or has rights to variable returns from its
involvement with the subsidiary and has the ability to affect those returns through its power over the subsidiary. The Company has power over the
subsidiary when it has existing rights to direct the relevant activities of the subsidiary which are those which significantly affect the subsidiary’s
returns. The financial statements of subsidiaries are included in the consolidated financial statements for the period they are controlled.
The subsidiaries of the Group at the reporting date are as follows:
Subsidiaries
Country of
incorporation
Principal activity
9474-9454 Québec Inc.
(1)
North American Lithium Inc.
Sayona East Kimberley Pty Ltd
Sayona Inc.
Sayona International Pty Ltd
Sayona Lithium Pty Ltd
Sayona North Inc.
Sayona Québec Inc.
(2)
(1)
Canada
Canada
Australia
Canada
Australia
Australia
Canada
Canada
Exploration
Lithium mining and processing
Exploration
Administrative, management and support services
Investment holding company
Exploration
Exploration
Investment holding company
Ownership interest
2023
%
100
75
100
100
100
100
100
75
2022
%
-
75
100
100
100
100
100
75
(1)
(2)
Non-controlling ownership interest of 25% is held by Piedmont Lithium Québec Holdings Inc.
Subsidiary was previously named 9451-6705 Québec Inc.
26. Interests in Joint Arrangements
The Group’s interests in joint arrangements are classified as either joint operations or joint ventures. The classification depends on the contractual
rights and obligations of each investor, rather than the legal structure of the joint arrangement.
Joint arrangements represent the contractual sharing of control between two or more parties in a business venture where decisions about the
relevant activities of the arrangement (those that significantly affect the returns of the business venture) require the unanimous consent of the
parties sharing control.
The Group has interests in the following joint arrangements at reporting date:
Project
Moblan Lithium Project
Morella Lithium Joint Venture Project
Country
Canada
Australia
Counterparty
SOQUEM Inc.
Morella Corporation Limited
Ownership interest
2023
%
60
49
2022
%
60
100
The above interests represent arrangements in which the parties maintain direct interests in each asset, and obligations for the liabilities, relating
to the arrangement. Accordingly, the Group has accounted for the above arrangements as joint operations. The Group's interest in the assets and
liabilities, revenue and expenses of joint operations are included in the respective line items of the consolidated financial statements.
Further details on the arrangements are as follows:
(a) Moblan Lithium Project
On 15 October 2021, the Group acquired a 60% interest in the Moblan Lithium Project, a drilling deposit host to high-grade spodumene
mineralisation. The project is 40% owned by SOQUEM Inc., a wholly-owned subsidiary of Investissement Québec.
(b) Morella Lithium Joint Venture Project
On 1 November 2022, Morella Corporation Limited satisfied the requirements under the Earn-In Agreement relating to several Pilbara tenements
with lithium rights located in the Pilgangoora district in Western Australia, Australia. Under the agreement, Morella Corporation Limited was
required to spend $1.5 million on exploration within three years in order to earn a 51% interest in the project.
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Notes to the Financial Statements
27. Related Party Transactions
(a) Parent entity
The ultimate parent entity of the Group is Sayona Mining Limited, which is incorporated and domiciled in Australia.
The registered office of the Company is Level 28, 10 Eagle Street, Brisbane QLD 4000.
(b) Subsidiaries, joint ventures and associates
The Group’s interests in subsidiaries, joint ventures and associates are disclosed in Note 25.
(c) Key management personnel compensation
Short-term employee benefits
Post-employment benefits
Share based payments
Total key management personnel compensation
*
Refer to Note 33 for details on restatement of prior period comparatives.
Further information is provided in the Remuneration Report on pages 53 to 60.
(d) Transactions with related parties
Transactions with related parties
Sales of goods and services
Purchases of goods and services
Interest expense
Net increase (decrease) in other amounts owing with related parties
Net increase (decrease) in loans with related parties
Proceeds from related parties
Outstanding balances with related parties
Trade and sundry amounts owing to related parties
Trade and sundry amounts owing from related parties
Other amounts owing to related parties
Other amounts owing from related parties
Loan amounts owing from related parties
2023
$’000
2,468
89
2,221
4,778
2022
$’000
Restated *
783
42
3,584
4,409
2023
$’000
18,956
156
1,177
(11,835)
87
77,806
34
44
25,530
-
87
2022
$’000
94
121
927
37,365
-
13,492
20
11
40,521
3,156
-
Transactions between related parties are at market prices or on normal commercial terms, no more favourable to the Group than those arranged
with third parties.
The Board has determined that the value of the services provided from related parties is not sufficiently material to interfere with the Directors’
capacity to bring an independent judgement to bear on issues before the Board and to act in the best interests of the Group as a whole, rather
than in the interests of an individual security holder or other party.
Sayona | Annual Report 2023
93
Notes to the Financial Statements
Other Disclosures
This section contains other information that must be disclosed to comply with accounting standards and other pronouncements, but is not
considered critical in understanding the financial performance or position of the Group.
28. Auditor’s Remuneration
The Group’s auditor is Nexia Brisbane Audit Pty Ltd.
Fees paid and payable to the Group’s auditor for assurance services
Audit and review of financial statements
Total auditor’s remuneration
29. Share Based Payments
2023
$’000
326
326
2022
$’000
211
211
The Group uses shares and options to settle liabilities. Share based payments to employees are measured at the fair value of the instruments
issued and amortised over the vesting periods. Share based payments to non-employees are measured at the fair value of goods or services
received or the fair value of the equity instruments issued if the fair value of the goods or services cannot be reliably measured, and are recorded
at the date the goods or services are received.
(a) Ordinary shares
Reconciliation of outstanding equity awards
FY22 Performance Rights
FY23 Performance Rights
(1)
(2)
Total awards
Equity rights
at beginning
of the year
4,894,986
-
Granted
during
the year
-
8,559,808
4,894,986
8,559,808
Vested
during
the year
Forfeited
during
the year
Lapsed
during
the year
Equity rights
at end
of the year
-
-
-
-
-
-
-
-
-
4,894,986
8,559,808
13,454,794
(1)
(2)
FY22 Performance Rights relate to equity awards granted to employees on 27 January 2022, subject to the achievement of specific performance measures. All rights are
expected to vest in FY24.
FY23 Performance Rights relate to equity awards granted to Mr Guy Belleau on 1 January 2023, subject to the achievement of specific performance measures over the period
from 1 January 2023 to 30 June 2027.
Equity awards are issued for nil consideration and take the form of rights to receive one ordinary share in Sayona Mining Limited for each right
granted, subject to performance and/or service conditions being met. Awards do not confer any dividend or voting rights until they convert into
ordinary shares at vesting. In addition, awards do not confer any rights to participate in a share issue.
(b) Options
Reconciliation of outstanding option awards
Non-recurring awards
Equity-settled services
Option awards
FY20 Performance Rights
FY22 Performance Rights
(1)
(2)
Total awards
Equity rights
at beginning
of the year
Granted
during
the year
Exercised
during
the year
Forfeited
during
the year
Lapsed
during
the year
Equity rights
at end
of the year
42,426,423
2,234,482
-
2,000,000
40,000,000
4,000,000
-
(6,000,000)
-
84,426,423
6,234,482
(6,000,000)
-
-
-
-
(42,426,423)
2,234,482
-
-
-
40,000,000
(42,426,423)
42,234,482
(1)
(2)
Outstanding equity-settled services relate to options granted to Jett Capital Advisors, LLC in respect of corporate advisory services undertaken for the Group. Options were
granted on 28 November 2022 at an exercise price of $0.1825, expiring on 28 November 2025.
Outstanding performance rights relate to options granted to KMP. Options were granted on 28 January 2022 at an exercise price of $0.15, expiring on 28 July 2023. All options
were exercised in July 2023, resulting in cash proceeds of $6 million.
Option awards do not confer any dividend or voting rights until they convert into ordinary shares. Each option is entitled to be converted into one
ordinary share in Sayona Mining Limited. The fair value of options is determined using the Black Scholes valuation model which incorporates all
market vesting conditions.
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Notes to the Financial Statements
30. Commitments
The following commitments exist at balance date but have not been brought to account:
Capital expenditure commitments
Exploration expenditure commitments
Other contractual commitments
Total commitments
Exploration expenditure commitments
2023
$’000
79,438
904
8,300
88,642
2022
$’000
110,000
3,812
-
113,812
The Group must meet minimum expenditure commitments on granted exploration tenements to maintain those tenements in good standing. If
the relevant tenement is relinquished, the expenditure commitment also ceases.
31. Contingent Assets and Liabilities
There were no material contingent assets or liabilities at the end of the reporting period (2022: Nil).
32. Parent Entity Information
(a) Summary financial information
The individual financial statements for the parent entity, Sayona Mining Limited, include the following aggregate amounts:
Result of parent entity
Profit/(loss) after income tax
Total comprehensive income/(loss)
Financial position of parent entity at year end
Current assets
Non-current assets
Total assets
Current liabilities
Non-current liabilities
Total liabilities
Net assets
Total equity of parent entity
Share capital
Reserves
Retained earnings/(accumulated losses)
Total equity
(b) Parent entity guarantees
The parent entity has not entered into any guarantees in the current or previous reporting period.
(c) Commitments
The parent entity had no contractual or other commitments at the reporting date (2022: Nil).
2023
$’000
2022
$’000
106,071
106,071
(10,062)
(10,062)
157,096
662,981
820,077
5,584
4,220
9,804
171,161
266,903
438,064
1,487
-
1,487
810,273
436,577
770,700
2,850
36,723
810,273
504,255
1,762
(69,440)
436,577
Sayona | Annual Report 2023
95
Notes to the Financial Statements
33. Restatement of Comparative Information
(a) Recognition of deferred tax liabilities
Deferred tax liabilities of $10.2 million have been recognised as at 30 June 2022 following an external review of the Group’s deferred tax position.
The adjustment is comprised of $9.0 million in deferred mining taxes and $1.2 million in deferred income taxes.
The deferred mining tax is primarily attributable to the book value of the capitalised exploration expenditure as at 30 June 2022, which does not
have a tax basis for the purposes of the Québec mining tax return. Accordingly, a deferred tax liability has been recognised in respect of capitalised
exploration expenditure.
The gain on acquisition of NAL recognised in FY22 has been restated for deferred mining tax purposes.
A summary of the adjustments made to the Consolidated Statement of Profit or Loss and Consolidated Statement of Financial Position from the
recognition of the deferred tax liability is set out as follows:
Year ended 30 June 2022
Consolidated statement of profit or loss
Other income
Profit/(loss) before income tax
Income tax expense
Profit/(loss) after income tax
Consolidated statement of financial position
Deferred tax liabilities
Total liabilities
Net assets
Reserves
Accumulated losses
Total equity attributable to equity holders of Sayona Mining Limited
Non-controlling interests
Total equity
Reported
balance
$’000
108,375
83,686
-
83,686
-
90,366
570,795
14,385
(7,361)
511,279
59,516
570,795
Adjustment
$’000
(6,659)
(6,659)
(3,207)
(9,866)
10,174
10,174
(10,174)
(834)
(6,421)
(7,255)
(2,919)
(10,174)
Restated
balance
$’000
101,716
77,027
(3,207)
73,820
10,174
100,540
560,621
13,551
(13,782)
504,024
56,597
560,621
There is no material impact on the operating, investing or financing cash flows of the Group from the restatement.
(b) Restatement of earnings per share
Earnings per share have been recalculated based on the restated earnings attributable to equity holders of the Company in accordance with the
adjustment to deferred tax liabilities as detailed above. In addition, an error was identified in the denominator used to calculate earnings per share
in FY22. A summary of the adjustments is as follows:
Year ended 30 June 2022
Earnings per share
Basic earnings per share (cents)
Diluted earnings per share (cents)
(c) Restatement of key management personnel compensation
Reported
balance
Adjustment
Restated
balance
1.23
1.16
(0.47)
(0.45)
0.76
0.71
A detailed review of remuneration identified that short-term employee benefits disclosed in the FY22 Remuneration Report were misstated due to
a calculation error. A summary of the adjustments is as follows:
Year ended 30 June 2022
Short-term employee benefits
Post-employment benefits
Share based payments
Total key management personnel compensation
96
Reported
balance
$’000
1,247
42
3,584
4,873
Adjustment
$’000
(464)
-
-
(464)
Restated
balance
$’000
783
42
3,584
4,409
Operating
and Financial
Review
Governance
Financial
Report
Additional
Information
Notes to the Financial Statements
34. Subsequent Events
The following events have arisen since the end of the financial year:
Equity Placement
On 19 July 2023, the Group completed the second tranche of a $200 million placement to institutional, professional and sophisticated investors,
resulting in the issuance of 170,726,221 fully paid ordinary shares at an issue price of $0.18 per share for aggregate gross proceeds of $30.7
million.
Board and Leadership Changes
On 28 August 2023, the Group announced changes to the Board of Directors following the resignation of Mr Brett Lynch as Managing Director and
Chief Executive Officer. To enable a smooth transition to new leadership, Mr James Brown was appointed as Executive Director and Interim Chief
Executive Officer, effective 27 August 2023.
In addition, Mr Philip Lucas was appointed as a Non-Executive Director, effective 27 August 2023. Mr Lucas is an experienced corporate lawyer
with a particular focus on equity capital markets, mergers and acquisitions, corporate governance and Australian Securities Exchange regulations
and compliance. Mr Lucas is currently Partner and Chair at boutique corporate and resources law firm, Allion Partners and serves as Chair of
Chilwa Minerals Limited.
Inaugural shipment of spodumene concentrate from North American Lithium
On 6 September 2023, the Group announced the receipt of cash proceeds from the inaugural shipment of spodumene concentrate from its North
American Lithium operation in Québec, Canada. The initial cash payment marked an important milestone in Sayona’s evolution from a developer
into a key North American lithium producer.
No other matters or circumstances have arisen since the end of the financial year that have significantly affected or may significantly affect the
operations, results of operations or state of affairs of the Group in subsequent financial years.
Sayona | Annual Report 2023
97
Directors’ Declaration
In accordance with a resolution of the Directors of the Company, we declare that:
1.
In the opinion of the Directors:
(a) The consolidated financial statements and notes that are set out on pages 62 to 97 of the Financial Report are in accordance with
the Corporations Act, including:
(i)
(ii)
complying with Australian Accounting Standards applicable to the Group which, as stated in Note 1 to the
financial statements, constitutes compliance with International Financial Reporting Standards (IFRS); and
giving a true and fair view of the Group’s financial position as at 30 June 2023 and of its performance for the year
ended on that date.
(b) There are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due and payable.
2.
The Directors have been given the declarations required by Section 295A of the Corporations Act from the Chief Executive Officer and
Chief Financial Officer for the financial year ended 30 June 2023.
This declaration is made in accordance with a resolution of the Board of Directors.
James Brown
Executive Director and Interim Chief Executive Officer
Paul Crawford
Executive Director and Chief Financial Officer
Date: 29 September 2023
98
Independent Auditor’s Report to the Members of Sayona Mining Limited
Report on the Audit of the Financial Report
Opinion
We have audited the financial report of Sayona Mining Limited (the Company and its subsidiaries (the
Group)), which comprises the consolidated statement of financial position as at 30 June 2023, the
consolidated statement of profit or loss, the consolidated statement of comprehensive income, the
consolidated statement of changes in equity and the consolidated statement of cash flows for the
year then ended, and notes to the financial statements, including a summary of significant accounting
policies, and the directors’ declaration.
In our opinion, the accompanying financial report of the Group is in accordance with the Corporations
Act 2001, including:
(i) giving a true and fair view of the Group’s financial position as at 30 June 2023 and of its
performance for the year then ended; and
(ii) complying with Australian Accounting Standards and the Corporations Regulations 2001.
Basis for Opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under
those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial
Report section of our report. We are independent of the Group in accordance with the auditor
independence requirements of the Corporations Act 2001 and the ethical requirements of the
Accounting Professional & 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 Company, would be in the same terms if given to the directors as at the
time of this auditor’s report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our opinion.
Key Audit Matters
Key audit matters are those matters that, in our professional judgement, were of most significance in
our audit of the financial report of the current period. These matters were addressed in the context of
our audit of the financial report as a whole, and in forming our opinion thereon, and we do not
provide a separate opinion on these matters
Sayona | Annual Report 2023
99
Key audit matter
How our audit addressed the key audit
matter
Accounting for mine development costs to
plant and equipment and mine properties
Refer to Note 12
At 30 June 2023, the carrying value of plant and
equipment amounts to $317.2 million and mine
properties amounts to $229.0 million.
Accounting for mine properties requires management
to exercise significant judgement in determining the
appropriate estimates to be applied in the application
of the Group’s accounting policy, including:
•
•
The allocation of mining costs between
operating and capital expenditure; and
Determination of the units of production
used to amortise mine properties.
In addition, the mine was in development phase up
to 1 May 2023 after which it reached production
phase. The accounting and treatment of capitalised
development and production stripping costs is
affected, depending on which phase the mine is in.
Once production phase has been reached, the key
driver of the allocation of costs between operating
and capital expenditure is the physical mining data
associated with mining activities.
Life-of-mine strip ratios need to be determined and
continuously reviewed as production progresses.
Costs are capitalised to the extent they relate to
expenditures incurred in creating future access to
ore rather than current period inventory.
In commissioning mine properties and mine plant
and equipment, judgement is also required to
allocate capitalised works in progress to either mine
properties or plant and equipment when the
underlying asset is in the location and condition
necessary for it to be capable of operating in the
manner intended by management.
Amortisation is applied to mine properties on a units
of production basis. Plant and equipment is
depreciated based on the lesser of the asset’s useful
life and life of mine. The rates of amortisation and
depreciation will therefore be revised and updated in
accordance with changes in life of mine estimates
and levels of production.
For the allocation and capitalisation of mining and
development costs, our procedures included, but were
not limited to:
• assessing management’s criteria with their
determination of whether the mine was in
development phase or whether production phase
had been reached;
• obtaining an understanding and testing of the key
controls management has in place in relation to
capitalisation of mining expenditure;
• assessment of the appropriateness of the allocation
of costs between operating and capital
expenditure, based on the nature of the underlying
activity and consideration of whether the mine was
in development or production phase;
• Performed physical verification procedures to
ascertain the completeness and existence of mine
plant and equipment and mine properties recorded
in the asset register;
•
testing a representative sample of additions in the
year to determine whether the capitalisation was
appropriate by considering the nature of
capitalised works in progress including the value,
timing and classification thereof; and
• assessment of transfers from capitalised works in
progress to plant and equipment and mine
properties, considering whether the underlying
assets had been brought into use on that date.
For the Group’s amortisation and depreciation
calculations, our procedures included, but were not
limited to:
• obtaining an understanding of the key controls that
management has in place in relation to the
calculation of the unit of production amortisation
rate and the depreciation rates applicable to plant
and equipment;
• assessing the appropriateness of production
amortisation rates and depreciation rates for
reasonableness and determination of the useful life
of mine plant and equipment and mine properties
is in line with accounting policies; and
•
testing of the mathematical accuracy of the
application of production amortisation rates and
depreciation rates applied to individual items of
plant and equipment and mine properties.
We also assessed the adequacy of the disclosures in
Note 12 to the financial statements including the
critical accounting estimates and judgements in the
accounting policy notes using our understanding
obtained from our testing, ensuring the disclosures
were consistent with the applied practices and the
requirements of the accounting standards.
100
Other Information
The directors are responsible for the other information. The other information comprises the
information in the Group’s annual report for the year ended 30 June 2023, but does not include the
financial report and the auditor’s report thereon.
Our opinion on the financial report does not cover the other information and 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 the
other information we are required to report that fact. We have nothing to report in this regard.
Responsibilities of the Directors’ for the Financial Report
The directors of the Company are responsible for the preparation of the financial report that gives a
true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001
and for such internal control as the directors determine is necessary to enable the preparation of the
financial report that gives a true and fair view and is free from material misstatement, whether due to
fraud or error.
In preparing the financial report, the directors are responsible for assessing the 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.
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.
As part of an audit in accordance with the Australian Auditing Standards, we exercise professional
judgement and maintain professional scepticism throughout the audit. We also:
•
Identify and assess the risks of material misstatement of the financial report, whether due to
fraud or error, design and perform audit procedures responsive to those risks, and obtain audit
evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not
detecting a material misstatement resulting from fraud is higher than for one resulting from
error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the
override of internal control.
• Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the Group’s internal control.
•
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by the directors.
Sayona | Annual Report 2023
101
•
•
Conclude on the appropriateness of the directors’ use of the going concern basis of accounting
and, based on the audit evidence obtained, whether a material uncertainty exists related to
events or conditions that may cast significant doubt on the Group’s ability to continue as a going
concern. If we conclude that a material uncertainty exists, we are required to draw attention in
our auditor’s report to the related disclosures in the financial report or, if such disclosures are
inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up
to the date of our auditor’s report. However, future events or conditions may cause the Group to
cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the financial report, including the
disclosures, and whether the financial report represents the underlying transactions and events
in a manner that achieves fair presentation.
• Obtain sufficient appropriate audit evidence regarding the financial information of the entities or
business activities within the Group to express an opinion on the Group financial report. We are
responsible for the direction, supervision and performance of the Group audit. We remain solely
responsible for our audit opinion.
We communicate with the directors regarding, among other matters, the planned scope and timing
of the audit and significant audit findings, including any significant deficiencies in internal control that
we identify during our audit.
From the matters communicated with the directors, we determine those matters that were of most
significance in the audit of the financial report of the current period and are therefore the key audit
matters. We describe these matters in our auditor’s report unless law or regulation precludes public
disclosure about the matter or when, in extremely rare circumstances, we determine that a matter
should not be communicated in our report because the adverse consequences of doing so would
reasonably be expected to outweigh the public interest benefits of such communication.
Report on the Remuneration Report
Opinion on the Remuneration Report
We have audited the Remuneration Report included in pages 53 to 60 of the Directors’ Report for the
year ended 30 June 2023.
In our opinion, the Remuneration Report of Sayona Mining Limited for the year ended 30 June 2023
complies with section 300A of the Corporations Act 2001.
Responsibilities
The directors of the Company are responsible for the preparation and presentation of the
Remuneration Report in accordance with section 300A of the Corporations Act 2001. Our
responsibility is to express an opinion on the Remuneration Report, based on our audit conducted in
accordance with Australian Auditing Standards.
Nexia Brisbane Audit Pty Ltd
Ann-Maree Robertson
Director
Brisbane
Dated: 29 September 2023
102
Operating
and Financial
Review
Governance
Financial
Report
Additional
Information
Sayona | Annual Report 2023
103
104
Operating
and Financial
Review
Governance
Financial
Report
Additional
Information
Additional
Information
Mineral Resources and Ore Reserves
Tenement Schedule
Shareholder Information
Glossary
Corporate Directory
106
109
133
135
141
Sayona | Annual Report 2023
105
Mineral Resources and Ore Reserves
Overview
Competent Persons
Information in this Mineral Resources and Ore Reserves section
relating to Exploration Targets, Exploration Results, Mineral
Resources or Ore Reserves is based on, and fairly represents,
information and supporting documentation compiled by the
Competent Persons listed in the table below, which includes details
on their respective professional association, relationship to Sayona,
and the area for which each Competent Person
is taking
responsibility.
A Competent Person is defined in the JORC Code. They must have
a minimum of five years’ experience working with the style of
mineralisation or type of deposit under consideration and relevant
to the activity being undertaken.
Each of our Competent Persons has given consent to the inclusion
of the information in this Mineral Resources and Ore Reserves
section in the form and context in which it appears.
In addition, each of our Competent Persons has confirmed that such
Mineral Resource or Ore Reserve estimates are also compliant with
the Canadian Institute of Mining, Metallurgy and Petroleum (CIM)
reporting guidelines, as required by National Instrument 43-101 –
Standards of Disclosure for Mineral Projects (NI 43-101).
The Group reports Mineral Resources and Ore Reserves
in
accordance with the 2012 Edition of the Australasian Code for
Reporting of Exploration Results, Mineral Resources and Ore
Reserves (JORC Code), as required by Chapter 5 of the Australian
Securities Exchange (ASX) Listing Rules.
Mineral Resources and Ore Reserves are reported in 100 per cent
terms and represent estimates as at 30 June 2023. Our Mineral
Resource estimations include Measured and Indicated Mineral
Resources which, after the application of all Modifying Factors and
development of a mine plan, have been classified as Ore Reserves.
All quantities in this Mineral Resources and Ore Reserves section
are reported in dry metric tonnes, unless otherwise stated.
It is important to note that Mineral Resources and Ore Reserves are
estimations, not precise calculations. Tonnes and grade data may
have been rounded to reflect the relative uncertainty of the estimate,
which is why minor computational differences may be present in the
totals.
Commodity price and exchange rate assumptions used to estimate
the economic viability of Ore Reserves are based on internal studies
and long-range forecasts. Our planning processes consider a range
of impacts on Ore Reserves, including assessments of operating
cost and the expectation of economically viable extraction.
All Ore Reserves reported are within existing permitted mining
tenements. Our mineral leases are of sufficient duration, or convey
a legal right to renew the tenure, to enable Ore Reserves on the
leased properties to be mined in accordance with forecasted
production schedules. These Ore Reserves may include areas
where additional approvals are required, and it is expected that such
approvals will be obtained within the timeframe needed to meet the
forecasted production schedule.
Competent Persons for JORC Code Reportable Estimates
Responsibility
Competent Person
Professional Association
Relationship
Member of The Australasian
Institute of Mining and Metallurgy
Member of Ordre des Géologues
du Québec
Member of Ordre des Géologues
du Québec
Member of Ordre des Ingénieurs
du Québec
Member of Ordre des Géologues
du Québec
Member of Ordre des Ingénieurs
du Québec
Member of Ordre des Géologues
du Québec
Member of Ordre des Géologues
du Québec
Member of Ordre des Ingénieurs
du Québec
Member of Ordre des Ingénieurs
du Québec
Group Exploration Manager for
Sayona Mining Limited
Vice President Exploration for
Sayona Inc.
External consultant employed by
SGS Canada Inc.
External consultant employed by
InnovExplo Inc.
External consultant employed by
InnovExplo Inc.
External consultant employed by
Primero Group Americas
External consultant employed by
InnovExplo Inc.
External consultant employed by
PLR Ressources Inc.
External consultant employed by
BBA Inc.
External consultant employed by
BBA Inc.
Activity
Exploration
Results
Mineral
Resources
Annual Report
Disclosures
Simon Attwell
Carl Corriveau
Authier
Maxime Dupéré
Moblan
Simon Boudreau
Alain Carrier
Ryan Cunningham
Vincent Nadeau-Benoit
NAL
Pierre-Luc Richard
Ore
Reserves
Authier
Isabelle Leblanc
NAL
Mélissa Jarry
106
Operating
and Financial
Review
Governance
Financial
Report
Additional
Information
Mineral Resources and Ore Reserves
Mineral Resources
Mineral Resources as at 30 June 2023
Measured Mineral
Resources
Indicated Mineral
Resources
Inferred Mineral
Resources
Total Mineral
Resources
Tonnes
kt
Grade
% Li2O
Metal
(1)
kt Li2O
Tonnes
kt
Grade
% Li2O
Metal
(1)
kt Li2O
Tonnes
kt
Grade
% Li2O
Metal
(1)
kt Li2O
Tonnes
kt
Grade
% Li2O
Metal
(1)
kt Li2O
6,042
0.98
59.2
8,098
1.03
83.4
2,996
1.00
30.0
17,136
1.01
172.6
6,313
1.46
5,601
11,541
2,932
23,499
0.89
1.19
1.52
1.17
1,000
1.19
11.7
24,000
1.23
296.6
7,209
3,406
1,430
8,939
22,000
11,000
0.81
1.00
1.42
1.12
1.20
1.30
12,810
21,260
4,362
32,438
264.1
141.8
47,000
11,000
0.85
1.24
1.49
1.16
1.22
1.30
572.4
141.8
Project
(2)
Authier
Open Pit
(3)
Moblan
Inter
Main
Moleon
South
(4)
NAL
Open Pit
Underground
(1)
(2)
(3)
(4)
Represents metal contained within mineral resources, expressed in thousand tonnes of lithium oxide.
75% ownership interest; cut-off grade of 0.55% Li2O.
60% ownership interest; cut-off grade of 0.25% Li2O.
75% ownership interest; cut-off grade of 0.60% Li2O.
Mineral Resources as at 30 June 2022
Measured Mineral
Resources
Indicated Mineral
Resources
Inferred Mineral
Resources
Total Mineral
Resources
Project
Tonnes
kt
Grade
% Li2O
Metal
(1)
kt Li2O
Tonnes
kt
Grade
% Li2O
Metal
(1)
kt Li2O
Tonnes
kt
Grade
% Li2O
Metal
(1)
kt Li2O
Tonnes
kt
Grade
% Li2O
Metal
(1)
kt Li2O
(2)
Authier
Open Pit
NAL
Open Pit
Underground
(3)
(4)
(5)
6,042
0.98
59.2
8,098
1.03
83.4
2,996
1.00
30.0
17,136
1.01
172.6
1,471
0.99
14.6
52,806
19,398
1.01
1.18
533.6
228.9
13,874
14,372
0.96
1.19
133.2
171.0
68,151
33,770
1.00
1.18
681.4
399.9
(1)
(2)
(3)
(4)
(5)
Represents metal contained within mineral resources, expressed in thousand tonnes of lithium oxide.
75% ownership interest; cut-off grade of 0.55% Li2O.
75% ownership interest.
Cut-off grade of 0.60% Li2O.
Cut-off grade of 0.80% Li2O.
Annual Review of Mineral Resources
Mr Pierre-Luc Richard, the Competent Person undertaking the Mineral Resources estimate for North American Lithium, has confirmed that the
estimate has not materially changed since when it was last reported in accordance with the JORC Code and under NI 43-101.
All criteria used to classify and estimate the Mineral Resources for North American Lithium and all Modifying Factors applied to the estimate are
still applicable.
A change to Mineral Resources due to mining depletion from a producing property is generally not considered to be a material change to the
property as it should be reasonably predictable based on a company’s continuous disclosure record. The Competent Person has undertaken
sufficient work to confirm the depletion that occurred up until 30 June 2023 is not material.
Sayona | Annual Report 2023
107
Mineral Resources and Ore Reserves
Ore Reserves
Ore Reserves as at 30 June 2023
Proved Ore Reserves
Probable Ore Reserves
Total Ore Reserves
Ownership
interest
%
Cut-off
grade
% Li2O
Tonnes
kt
Grade
% Li2O
Metal
(1)
kt Li2O
Tonnes
kt
Grade
% Li2O
Metal
(1)
kt Li2O
Tonnes
kt
Grade
% Li2O
Metal
(1)
kt Li2O
75
75
0.55
6,200
0.93
57.6
5,100
1.00
50.7
11,300
0.96
108.3
0.60
700
1.24
8.7
21,000
1.08
226.8
21,700
1.08
235.5
Project
Authier
Open Pit
NAL
Open Pit
(1)
Represents metal contained within ore reserves, expressed in thousand tonnes of lithium oxide.
Ore Reserves as at 30 June 2022
Proved Ore Reserves
Probable Ore Reserves
Total Ore Reserves
Ownership
interest
%
Cut-off
grade
% Li2O
Tonnes
kt
Grade
% Li2O
Metal
(1)
kt Li2O
Tonnes
kt
Grade
% Li2O
Metal
(1)
kt Li2O
Tonnes
kt
Grade
% Li2O
Metal
(1)
kt Li2O
75
0.60
1,200
0.92
10.9
28,000
0.96
269.4
29,200
0.96
280.3
Project
NAL
Open Pit
(1)
Represents metal contained within ore reserves, expressed in thousand tonnes of lithium oxide.
Annual Review of Ore Reserves
Ms Mélissa Jarry, the Competent Person undertaking the Ore Reserves estimate for North American Lithium, has confirmed that the estimate has
not materially changed since when it was last reported in accordance with the JORC Code and under NI 43-101.
All criteria used to classify and estimate the Ore Reserves for North American Lithium and all Modifying Factors applied to the estimate are still
applicable.
A change to Ore Reserves due to mining depletion from a producing property is generally not considered to be a material change to the property
as it should be reasonably predictable based on a company’s continuous disclosure record. The Competent Person has undertaken sufficient
work to confirm the depletion that occurred up until 30 June 2023 is not material.
The Group confirms that it is not aware of any new information or data that materially affects the information included in this report, and all
material assumptions and technical parameters continue to apply and have not materially changed. The Group confirms that the form and context
in which the Competent Person’s findings are presented have not been materially modified from the original market announcements.
108
Operating
and Financial
Review
Governance
Financial
Report
Additional
Information
Tenement Schedule
as at 30 September 2023
Australia
Project
Location
Tenement
Name
Commodity
Status
Interest
WA Graphite
Projects
Western Australia,
Australia
WA Lithium and
Gold Projects
Western Australia,
Australia
(1)
(2)
Tenement subject to Morella Lithium Joint Venture.
Gold rights are 100% owned by Sayona.
E80/4511
E80/4949
E45/2364
E45/4703
E45/4716
E45/4726
E45/5288
E45/5289
E45/5817
E45/5904
E47/2983
E47/3802
E47/3829
E47/3950
E59/2055
E59/2092
Western Iron
Corkwood
Tabba Tabba
Tabba Tabba East
Red Rock
West Wodgina
Strelley
Strelley West
Indee
Mac Well
Mallina
Friendly Creek
Deep Well
Mt Dove
Mt Edon West
Mt Edon
Graphite
Graphite
Lithium
Gold & Lithium
Gold & Lithium
Gold & Lithium
Gold & Lithium
Gold & Lithium
Gold & Lithium
Gold & Lithium
Lithium
Gold & Lithium
Gold & Lithium
Gold & Lithium
Lithium
Lithium
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Application
Granted
Granted
Granted
Granted
Granted
Granted
Granted
(1,2)
(1,2)
100%
100%
100%
(1,2)
49%
100%
(1,2)
49%
49%
49%
100%
(1,2)
49%
(1)
49%
100%
100%
100%
(1)
49%
(1)
39%
Sayona | Annual Report 2023
109
Tenement Schedule
as at 30 September 2023
Canada
Project
Tenement
Interest
Project
Tenement
Interest
Project
Tenement
Interest
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
2116146
2116154
2116155
2116156
2183454
2183455
2187651
2187652
2192470
2192471
2194819
2195725
2219206
2219207
2219208
2219209
2240226
2240227
2247100
2247101
2472424
2472425
2480180
2507910
1005
2145325
2145326
2145327
2145328
2145329
2145330
2145331
2145332
2145333
2145334
2145335
2145336
2154987
2154988
2154989
2154990
2154991
2154992
2154993
2569722
2569723
2638652
2638653
2638654
2638655
2638656
2638657
2638658
2638659
Authier
Lithium
Project
Location
Québec,
Canada
Commodity
Lithium
Total Claims
24
North
American
Lithium
Location
Québec,
Canada
Commodity
Lithium
Total Claims
22
Pontiac
Claims
Commodity
Lithium
Total Claims
1,284
110
Pontiac
Claims
Québec,
Canada
(continued)
2638660
2638661
2638662
2638663
2638664
2638665
2638666
2638667
2638668
2638669
2638670
2638671
2638672
2638673
2638674
2638675
2638676
2638677
2638678
2638679
2638680
2638681
2638682
2638683
2638684
2638685
2638686
2638687
2638688
2638689
2638690
2638691
2638692
2638693
2638694
2638695
2638696
2638697
2638698
2638699
2638700
2638701
2638702
2638703
2638704
2638705
2638706
2638707
2638708
2638709
2638710
2638711
2638712
2638713
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
Pontiac
Claims
Québec,
Canada
(continued)
2638714
2638715
2638716
2638717
2638718
2638719
2638720
2638721
2638722
2638723
2638724
2638725
2638726
2638727
2638728
2638729
2638730
2638731
2638732
2638733
2638734
2638735
2638736
2638737
2638738
2638739
2638740
2638741
2638742
2638743
2638744
2638745
2638746
2638747
2638748
2638749
2638750
2638751
2638752
2638753
2638754
2638755
2638756
2638757
2638758
2638760
2638761
2638762
2638763
2638764
2638765
2638766
2638767
2638768
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
Operating
and Financial
Review
Governance
Financial
Report
Additional
Information
Tenement Schedule
as at 30 September 2023
Canada (continued)
Project
Tenement
Interest
Project
Tenement
Interest
Project
Tenement
Interest
Pontiac
Claims
Location
Québec,
Canada
Commodity
Lithium
Total Claims
1,284
2638769
2638770
2638771
2638772
2638773
2638774
2638775
2638776
2638777
2638778
2638779
2638780
2638781
2638782
2638783
2638784
2638785
2638786
2638787
2638788
2638789
2638790
2638791
2638792
2638793
2638794
2638795
2638796
2638797
2638798
2638799
2638800
2638801
2638802
2638803
2638804
2638805
2638806
2638807
2638808
2638809
2638810
2638811
2638812
2638813
2638814
2638815
2638816
2638817
2638818
2638819
2638820
2638821
2638822
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
Pontiac
Claims
Québec,
Canada
(continued)
2638823
2638824
2638825
2638826
2638827
2638828
2638829
2638830
2638831
2638832
2638833
2638834
2638835
2638836
2638837
2638838
2638839
2638840
2638841
2638842
2638843
2638844
2638845
2638846
2638847
2638848
2638849
2638850
2638851
2638852
2638853
2638854
2638855
2638856
2638857
2638858
2638859
2638860
2638861
2638862
2638863
2638864
2638865
2638866
2638867
2638868
2638869
2638870
2638871
2638872
2638873
2638874
2638875
2638876
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
Pontiac
Claims
Québec,
Canada
(continued)
2638877
2638878
2638879
2638880
2638881
2638882
2638883
2638884
2638885
2638886
2638887
2638888
2638889
2638890
2638891
2638892
2638893
2638894
2639224
2639225
2639226
2639227
2639228
2639229
2639230
2639231
2639232
2639233
2639234
2639235
2639236
2639237
2639238
2639239
2639240
2639241
2639242
2639243
2639244
2639245
2639246
2639247
2639248
2639249
2639250
2639251
2639252
2639253
2639254
2639255
2639256
2639257
2639258
2639259
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
Sayona | Annual Report 2023
111
Tenement Schedule
as at 30 September 2023
Canada (continued)
Project
Tenement
Interest
Project
Tenement
Interest
Project
Tenement
Interest
Pontiac
Claims
Location
Québec,
Canada
Commodity
Lithium
Total Claims
1,284
2639260
2639261
2639262
2639263
2639264
2639265
2639266
2639267
2639268
2639269
2639270
2639271
2639272
2639273
2639274
2639275
2639276
2639277
2639278
2639279
2639280
2639281
2639282
2639283
2639284
2639285
2639286
2639287
2639288
2639289
2639290
2639291
2639292
2639293
2639294
2639295
2639296
2639297
2639298
2639299
2639300
2639301
2639302
2639303
2639304
2639305
2639306
2639307
2639308
2639309
2639310
2639311
2639312
2639313
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
112
Pontiac
Claims
Québec,
Canada
(continued)
2639314
2639315
2639316
2639317
2639318
2639319
2639320
2639321
2639322
2639323
2639324
2639325
2639326
2639327
2639328
2639329
2639330
2639331
2639332
2639333
2639334
2639335
2639336
2639337
2639338
2639339
2639340
2639341
2639342
2639343
2639344
2639345
2639346
2639347
2639348
2639349
2639350
2639351
2639352
2639353
2639354
2639355
2639356
2639357
2639358
2639359
2639360
2639361
2639362
2639363
2639364
2639365
2639366
2639367
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
Pontiac
Claims
Québec,
Canada
(continued)
2639368
2639369
2639370
2639371
2639372
2639373
2639374
2639375
2639376
2639377
2639378
2639379
2639380
2639381
2639382
2639383
2639384
2639385
2639386
2639387
2639388
2639389
2639390
2639391
2639392
2639393
2639394
2639395
2639396
2639397
2639398
2639399
2639400
2639401
2639402
2639403
2639404
2639405
2639406
2639407
2639408
2639409
2639410
2639411
2639412
2639413
2639414
2639415
2639416
2639417
2639418
2639419
2639420
2639421
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
Operating
and Financial
Review
Governance
Financial
Report
Additional
Information
Tenement Schedule
as at 30 September 2023
Canada (continued)
Project
Tenement
Interest
Project
Tenement
Interest
Project
Tenement
Interest
Pontiac
Claims
Location
Québec,
Canada
Commodity
Lithium
Total Claims
1,284
2639422
2639423
2639424
2639425
2639426
2639427
2639428
2639429
2639430
2639431
2639432
2639433
2639434
2639435
2639436
2639437
2639438
2639439
2639440
2639441
2639442
2639443
2639444
2639445
2639446
2639447
2639448
2639449
2639450
2639451
2639452
2639453
2639454
2639455
2639456
2639457
2639459
2639460
2639461
2639462
2639463
2639464
2639465
2639466
2639467
2639468
2639469
2639470
2639471
2639472
2639473
2639474
2639475
2639476
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
Pontiac
Claims
Québec,
Canada
(continued)
2639477
2639478
2639479
2639480
2639481
2639482
2639483
2639484
2639485
2639486
2639487
2639488
2639489
2639490
2639491
2639492
2639493
2639494
2639495
2639496
2639497
2639498
2639499
2639500
2639501
2639502
2639503
2639504
2639505
2639506
2639507
2639508
2639509
2639510
2639511
2639512
2639513
2639514
2639515
2639516
2639517
2639518
2639519
2639520
2639521
2639522
2639523
2639524
2639525
2639526
2639527
2639528
2639529
2639530
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
Pontiac
Claims
Québec,
Canada
(continued)
2639531
2639532
2639533
2639534
2639535
2639536
2639537
2639538
2639539
2639540
2639541
2639542
2639543
2639544
2639545
2639546
2639547
2639548
2639549
2639550
2639551
2639552
2639553
2639554
2639555
2639556
2639557
2639558
2639559
2639560
2639561
2639562
2639563
2639564
2639565
2639566
2639567
2639568
2639569
2639570
2639571
2639572
2639573
2639574
2639575
2639576
2639577
2639578
2639579
2639580
2639581
2639582
2639583
2639584
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
Sayona | Annual Report 2023
113
Tenement Schedule
as at 30 September 2023
Canada (continued)
Project
Tenement
Interest
Project
Tenement
Interest
Project
Tenement
Interest
Pontiac
Claims
Location
Québec,
Canada
Commodity
Lithium
Total Claims
1,284
2639585
2639586
2639587
2639588
2639589
2639590
2639591
2639592
2639593
2639594
2639595
2639596
2639597
2639598
2639599
2639600
2639601
2639602
2639603
2639604
2639605
2639606
2639607
2639608
2639609
2639610
2639611
2639612
2639613
2639614
2639615
2639616
2639746
2639747
2639748
2639749
2639750
2639751
2639752
2639753
2639754
2639755
2639756
2639757
2639758
2639759
2639760
2639761
2639762
2639763
2639764
2639765
2639766
2639767
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
114
Pontiac
Claims
Québec,
Canada
(continued)
2639768
2639769
2639770
2639771
2639772
2639773
2639774
2639775
2639776
2639777
2639778
2639779
2639780
2639781
2639782
2639783
2639784
2639785
2639786
2639787
2639788
2639789
2639790
2639791
2639792
2639793
2639794
2639795
2639796
2639797
2639798
2639799
2639800
2639801
2639802
2639803
2639804
2639805
2639806
2639807
2639808
2639809
2639810
2639811
2639812
2639813
2639814
2639815
2639816
2639817
2639818
2639819
2639820
2639821
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
Pontiac
Claims
Québec,
Canada
(continued)
2639822
2639823
2639824
2639825
2639826
2639827
2639828
2639829
2639830
2639831
2639832
2639833
2639834
2639835
2639836
2639837
2639838
2639839
2639840
2639841
2639842
2639843
2639844
2639845
2639846
2639847
2639848
2639849
2639850
2639851
2639852
2639853
2639854
2640010
2640026
2640027
2640028
2640029
2640030
2640031
2640032
2640033
2640034
2640035
2640036
2640037
2640038
2640039
2640040
2640041
2640042
2640043
2640044
2640045
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
Operating
and Financial
Review
Governance
Financial
Report
Additional
Information
Tenement Schedule
as at 30 September 2023
Canada (continued)
Project
Tenement
Interest
Project
Tenement
Interest
Project
Tenement
Interest
Pontiac
Claims
Location
Québec,
Canada
Commodity
Lithium
Total Claims
1,284
2640046
2640047
2640048
2640049
2640050
2640051
2640052
2640053
2640054
2640055
2640056
2640057
2640058
2640059
2640060
2640061
2640062
2640063
2640064
2640065
2640066
2640067
2640068
2640069
2640070
2640071
2640072
2640073
2640074
2640075
2640076
2640077
2640078
2640079
2640080
2640081
2640082
2640083
2640084
2640085
2640086
2640087
2640088
2640089
2640090
2640091
2640092
2640093
2640094
2640095
2640096
2640097
2640098
2640099
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
Pontiac
Claims
Québec,
Canada
(continued)
2640100
2640101
2640102
2640103
2640104
2640105
2640106
2640107
2640108
2640109
2640110
2640111
2640112
2640113
2640114
2640115
2640116
2640117
2640118
2640119
2640120
2640121
2640122
2640123
2640124
2640125
2640126
2640127
2640128
2640129
2640130
2640131
2640132
2640133
2640134
2640135
2640136
2640137
2640138
2640139
2640140
2640141
2640142
2640143
2640144
2640145
2640146
2640147
2640148
2640149
2640150
2640151
2640152
2640153
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
Pontiac
Claims
Québec,
Canada
(continued)
2640154
2640155
2640156
2640157
2640158
2640159
2640160
2640161
2640162
2640163
2640164
2640165
2640166
2640167
2640168
2640169
2640170
2640171
2640172
2640173
2640174
2640175
2640176
2640177
2640178
2640179
2640180
2640181
2640182
2640183
2640184
2640185
2640186
2640187
2640188
2640189
2640190
2640191
2640192
2640193
2640194
2640195
2640196
2640197
2640198
2640199
2640200
2640201
2640202
2640203
2640204
2640205
2640206
2640207
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
Sayona | Annual Report 2023
115
Tenement Schedule
as at 30 September 2023
Canada (continued)
Project
Tenement
Interest
Project
Tenement
Interest
Project
Tenement
Interest
Pontiac
Claims
Location
Québec,
Canada
Commodity
Lithium
Total Claims
1,284
2640208
2640209
2640210
2640211
2640212
2640213
2640214
2640215
2640216
2640217
2640218
2640219
2640220
2640221
2640222
2640223
2640224
2640225
2640226
2640227
2640228
2640229
2640230
2640231
2640232
2640233
2640234
2640235
2640236
2640237
2640238
2640239
2640240
2640241
2640242
2640243
2640244
2640245
2640246
2640247
2640248
2640249
2640250
2640251
2640252
2640253
2640254
2640255
2640256
2640257
2640258
2640259
2640260
2640261
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
116
Pontiac
Claims
Québec,
Canada
(continued)
2640262
2640263
2640264
2640265
2640266
2640267
2640268
2640269
2640270
2640271
2640272
2640273
2640274
2640275
2640276
2640277
2640278
2640279
2640280
2640281
2640282
2640283
2640284
2640285
2640286
2640287
2640288
2640289
2640290
2640291
2640292
2640293
2640294
2640295
2640296
2640297
2640298
2640299
2640300
2640301
2640717
2640718
2640719
2640720
2640721
2640722
2640723
2640724
2640725
2640726
2640727
2640728
2640729
2640730
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
Pontiac
Claims
Québec,
Canada
(continued)
2640731
2640732
2640733
2640734
2640735
2640736
2640737
2640738
2640739
2640740
2640741
2640742
2640743
2640744
2640745
2640746
2640747
2640748
2640749
2640750
2640751
2640752
2640753
2640754
2640755
2640756
2640757
2640758
2640759
2640760
2640761
2640762
2640763
2640764
2640765
2640766
2640767
2640768
2640769
2640770
2640771
2640772
2640773
2640774
2640775
2640776
2640777
2640778
2640779
2640780
2640781
2640782
2640783
2640784
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
Operating
and Financial
Review
Governance
Financial
Report
Additional
Information
Tenement Schedule
as at 30 September 2023
Canada (continued)
Project
Tenement
Interest
Project
Tenement
Interest
Project
Tenement
Interest
Pontiac
Claims
Location
Québec,
Canada
Commodity
Lithium
Total Claims
1,284
2640785
2640786
2640787
2640788
2640789
2640790
2640791
2640792
2640793
2640794
2640795
2640796
2640797
2640798
2640799
2640800
2640801
2640802
2640803
2640804
2640805
2640806
2640807
2640808
2640809
2640810
2640811
2640812
2640813
2640814
2640815
2640816
2640817
2640818
2640819
2640820
2640821
2640822
2640823
2640824
2640825
2640826
2640827
2640828
2640829
2640830
2640831
2640832
2640833
2640834
2640835
2640836
2640837
2640838
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
Pontiac
Claims
Québec,
Canada
(continued)
2640839
2640840
2640841
2640842
2640843
2640844
2640845
2640846
2640847
2640848
2640849
2641004
2641005
2641006
2641007
2641008
2641009
2641010
2641011
2641012
2641013
2641014
2641108
2641109
2641110
2641111
2641112
2641113
2641114
2641115
2641116
2641117
2641118
2641119
2641120
2641121
2641122
2641123
2641124
2641125
2641126
2641127
2641128
2641129
2641130
2641131
2641132
2641133
2641134
2641135
2641136
2641137
2641138
2641139
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
Pontiac
Claims
Québec,
Canada
(continued)
2641140
2641141
2641142
2641143
2641144
2641145
2641146
2641147
2641148
2641149
2641150
2641151
2641152
2641424
2641425
2643810
2643811
2643812
2643813
2643814
2643819
2643820
2643821
2643822
2643823
2643824
2643825
2643826
2643827
2643829
2643830
2643831
2643832
2643833
2643834
2643835
2643836
2643837
2643838
2643839
2643840
2643841
2643842
2644631
2644632
2644633
2644634
2644635
2644636
2644637
2644638
2644639
2644640
2644641
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
Sayona | Annual Report 2023
117
Tenement Schedule
as at 30 September 2023
Canada (continued)
Project
Tenement
Interest
Project
Tenement
Interest
Project
Tenement
Interest
2644642
2644643
2644644
2644648
2644649
2646177
2646178
2646179
2646180
2646181
2646182
2648060
2648061
2648686
2648687
2685903
2685904
2687680
2687681
2687682
2687683
2687684
2687685
2706313
2706314
2706315
2706316
2706317
2706318
2706319
2706320
2706321
2745268
2745269
1133877
2415443
2415444
2436732
2436733
2436734
2438472
2438473
2438474
2438475
2438476
2438477
2438478
2438723
2440836
2440837
2440838
2440839
2440840
2440841
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
Pontiac
Claims
Location
Québec,
Canada
Commodity
Lithium
Total Claims
1,284
Tansim
Lithium
Project
Location
Québec,
Canada
Commodity
Lithium
Total Claims
352
118
Tansim
Lithium
Project
Location
Québec,
Canada
Commodity
Lithium
Total Claims
352
2440842
2440843
2440844
2440845
2440846
2440847
2440848
2440849
2440850
2440851
2440852
2440853
2440854
2440855
2440856
2440857
2440858
2440859
2440860
2440890
2440891
2440892
2440893
2440894
2440895
2440896
2440897
2440898
2440899
2440900
2440901
2440902
2440903
2440907
2440908
2440909
2440919
2440920
2440925
2440930
2440935
2440936
2440991
2440992
2440993
2440994
2450758
2519251
2519252
2519253
2519254
2519255
2519256
2519257
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
Tansim
Lithium
Project
Québec,
Canada
(continued)
2519258
2519259
2519260
2519261
2519262
2519263
2519264
2519265
2519266
2519267
2519268
2519269
2519270
2519271
2519272
2519273
2519274
2519275
2519276
2519277
2519278
2519279
2519280
2519281
2519282
2519283
2519284
2519285
2519286
2519287
2519288
2519289
2519290
2519291
2519292
2519293
2519294
2519295
2519296
2519297
2519298
2519299
2519300
2519301
2519302
2519303
2519304
2519305
2519306
2519307
2519308
2519309
2519310
2519311
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
Operating
and Financial
Review
Governance
Financial
Report
Additional
Information
Tenement Schedule
as at 30 September 2023
Canada (continued)
Project
Tenement
Interest
Project
Tenement
Interest
Project
Tenement
Interest
Tansim
Lithium
Project
Location
Québec,
Canada
Commodity
Lithium
Total Claims
352
2519312
2519313
2519314
2519315
2519316
2519317
2519323
2519324
2572665
2572666
2572667
2572668
2572669
2572670
2572671
2572672
2572673
2572674
2572675
2572676
2572677
2572678
2572679
2572680
2572681
2572682
2572683
2572684
2572685
2572686
2572687
2572688
2572689
2572690
2572691
2572692
2572693
2572694
2572695
2572696
2572697
2572698
2572699
2572700
2572701
2572702
2572703
2579261
2579262
2579263
2579264
2579265
2579266
2579267
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
Tansim
Lithium
Project
Québec,
Canada
(continued)
2579268
2579269
2579270
2579271
2601761
2601762
2601763
2601764
2601765
2601766
2601767
2601768
2601769
2601770
2601771
2601772
2601773
2601774
2601775
2601776
2601777
2601778
2601779
2601780
2601781
2601782
2601783
2601784
2601785
2601786
2601787
2601788
2601789
2601790
2601791
2601792
2601793
2601794
2601795
2601796
2601797
2601798
2601799
2601803
2601804
2601805
2601806
2601807
2601808
2601809
2601810
2601811
2601812
2601813
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
Tansim
Lithium
Project
Québec,
Canada
(continued)
2601814
2601815
2601816
2601817
2601818
2601819
2601820
2601821
2601822
2601823
2601824
2601825
2601826
2601827
2601828
2601829
2601830
2601831
2601832
2601833
2601834
2601835
2601836
2601837
2601838
2601839
2601840
2601841
2601862
2601863
2601864
2601865
2601866
2601867
2601868
2601869
2601870
2601871
2601872
2601918
2601922
2603761
2603762
2603763
2603764
2603765
2603766
2603767
2603768
2603769
2603770
2603771
2603772
2603773
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
Sayona | Annual Report 2023
119
Tenement Schedule
as at 30 September 2023
Canada (continued)
Project
Tenement
Interest
Project
Tenement
Interest
Tansim
Lithium
Project
Location
Québec,
Canada
Commodity
Lithium
Total Claims
352
2603774
2603775
2603776
2603777
2603778
2603779
2603780
2603781
2603782
2603783
2603784
2603785
2603786
2603787
2603788
2603789
2603790
2603791
2603792
2603793
2603794
2603795
2603796
2603797
2603798
2603799
2603800
2603801
2603802
2603803
2603804
2603805
2603806
2603807
2603808
2603809
2603810
2603811
2603812
2603813
2603814
2603815
2603816
2603817
2603818
2603819
2603820
2603821
2603822
2603823
2603824
2603825
2603826
2603827
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
Tansim
Lithium
Project
Québec,
Canada
(continued)
Vallée
Lithium
Project
(NAL)
Location
Québec,
Canada
Commodity
Lithium
Total Claims
20
Lac Albert
Lithium
Project
Location
Québec,
Canada
Commodity
Lithium
Total Claims
121
2603828
2603829
2603830
2603831
2603832
2603833
2603834
2603835
2154760
2154761
2167933
2167934
2167935
2167936
2167937
2167938
2444462
2444463
2490652
2490653
2490654
2490655
2490656
2520959
2521244
2521245
2521246
2521247
2630529
2630530
2630531
2630532
2630533
2630534
2630535
2630536
2630537
2630538
2630539
2630540
2630541
2630542
2630543
2630544
2630545
2630546
2630547
2630548
2630549
2630550
2630551
2630552
2630553
2630554
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
120
Project
Lac Albert
Lithium
Project
Québec,
Canada
(continued)
Tenement
Interest
2630555
2630556
2630557
2630558
2630559
2630560
2630561
2630562
2630563
2630564
2630565
2630566
2630567
2630568
2630569
2630570
2630571
2630572
2630573
2630574
2630575
2630576
2630577
2630578
2630579
2630580
2630581
2630582
2630583
2630584
2630585
2630586
2630587
2630588
2630589
2630590
2630591
2630592
2630593
2630594
2630595
2630596
2630597
2630598
2630599
2630600
2630601
2630602
2630603
2630604
2630605
2630606
2630607
2630608
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
Operating
and Financial
Review
Governance
Financial
Report
Additional
Information
Tenement Schedule
as at 30 September 2023
Canada (continued)
Project
Lac Albert
Lithium
Project
Location
Québec,
Canada
Commodity
Lithium
Total Claims
121
Moblan
Lithium
Project
Location
Québec,
Canada
Commodity
Lithium
Total Claims
20
Tenement
Interest
Project
Tenement
Interest
Project
Tenement
Interest
2630609
2630610
2630611
2630612
2630613
2630614
2630615
2630616
2630617
2630618
2630619
2630620
2630621
2630622
2630623
2630624
2630625
2630626
2630627
2630628
2630629
2630630
2630631
2630632
2630633
2630634
2630635
2630636
2630637
2630638
2630639
2630640
2630641
2630642
2630643
2630644
2630645
2630646
2630647
2630648
2630649
2195586
2195587
2331201
2331202
2331203
2331204
2331205
2331206
2331207
2331208
2331353
2331354
2331355
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
60%
60%
60%
60%
60%
60%
60%
60%
60%
60%
60%
60%
60%
Moblan
Lithium
Project
Québec,
Canada
(continued)
Troilus
Claims
Location
Québec,
Canada
Commodity
Lithium
Total Claims
1,824
2331356
2331357
2331358
2331359
2338382
2378688
2378689
22693
22694
23716
23717
23730
23931
24255
24257
24261
24269
44235
81197
81198
81199
81203
81204
1117911
1117912
1117918
1117919
1117926
1117936
2090518
2090923
2090924
2158088
2166942
2173601
2173630
2173631
2173633
2173637
2173638
2173640
2173641
2209948
2219972
2219973
2220041
2220042
2220063
2220064
2240755
2240757
2253415
2253424
2253432
60%
60%
60%
60%
60%
60%
60%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
Troilus
Claims
Québec,
Canada
(continued)
2253516
2253517
2253518
2253519
2253520
2253521
2253527
2253528
2253529
2253530
2253531
2253877
2253878
2253880
2262720
2264368
2264369
2264372
2264374
2264375
2264376
2264400
2283442
2283443
2283444
2283445
2323529
2323531
2323706
2323708
2323709
2323712
2323714
2323746
2323747
2323748
2323749
2342477
2369221
2371567
2371568
2371569
2371577
2371578
2371579
2371580
2371581
2371582
2371584
2372785
2372786
2372787
2372788
2372789
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
Sayona | Annual Report 2023
121
Tenement Schedule
as at 30 September 2023
Canada (continued)
Project
Tenement
Interest
Project
Tenement
Interest
Project
Tenement
Interest
Troilus
Claims
Location
Québec,
Canada
Commodity
Lithium
Total Claims
1,824
2372794
2385965
2385966
2385967
2385968
2385969
2385971
2385972
2385973
2385974
2385975
2385976
2389106
2389107
2389108
2389109
2389110
2389111
2389112
2389113
2389114
2389115
2389116
2389117
2389118
2389119
2389120
2389121
2389122
2389123
2389124
2391579
2401405
2401406
2401407
2401410
2401411
2401412
2401413
2401414
2401415
2401416
2401417
2401424
2401425
2401426
2401427
2401428
2401429
2401430
2401431
2401432
2401439
2401440
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
122
Troilus
Claims
Québec,
Canada
(continued)
2401441
2401442
2401443
2401449
2401452
2401453
2401454
2401455
2401456
2401486
2401487
2401488
2401489
2401490
2401491
2401492
2401493
2401494
2401495
2401496
2401497
2401498
2401499
2401500
2401501
2401502
2401503
2401504
2401505
2404406
2424548
2424549
2424550
2424551
2424553
2428481
2428483
2429184
2429185
2429186
2429187
2429188
2443513
2443514
2443515
2443516
2443517
2443518
2443519
2443520
2443521
2443522
2443523
2443524
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
Troilus
Claims
Québec,
Canada
(continued)
2443525
2443526
2443527
2443528
2443529
2443530
2443531
2443532
2447808
2447833
2447851
2447852
2447983
2447986
2447993
2447994
2447995
2447996
2447997
2453351
2453352
2453353
2453354
2453355
2453356
2453357
2453358
2453359
2453360
2453361
2453362
2453363
2453364
2453365
2453366
2453367
2453368
2453369
2453370
2453371
2453372
2453373
2453374
2453375
2453376
2453377
2453378
2453379
2453380
2453381
2453382
2453383
2453384
2453385
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
Operating
and Financial
Review
Governance
Financial
Report
Additional
Information
Tenement Schedule
as at 30 September 2023
Canada (continued)
Project
Tenement
Interest
Project
Tenement
Interest
Project
Tenement
Interest
Troilus
Claims
Location
Québec,
Canada
Commodity
Lithium
Total Claims
1,824
2454358
2454359
2454360
2454361
2454362
2454363
2454364
2454365
2454366
2454367
2454368
2454369
2454370
2454375
2454376
2454377
2454409
2454410
2454411
2454412
2454413
2454414
2457004
2457005
2457006
2457007
2457008
2457009
2457010
2457011
2457014
2457015
2457016
2457018
2457019
2457022
2457024
2457026
2457027
2457028
2457029
2457030
2457031
2457033
2457034
2457035
2461571
2461984
2461985
2461986
2461987
2461988
2461989
2461991
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
Troilus
Claims
Québec,
Canada
(continued)
2461992
2461993
2461994
2461995
2465289
2465290
2465291
2465292
2468133
2471375
2472338
2472339
2472340
2472341
2472342
2472343
2472346
2472347
2472348
2472349
2472350
2472356
2510194
2510195
2510196
2510197
2510198
2510199
2510200
2510205
2510206
2510207
2510208
2510209
2510210
2510211
2510212
2510213
2510214
2510215
2510216
2510217
2510271
2510272
2510273
2510274
2510275
2510276
2510292
2510293
2510294
2510295
2510726
2510727
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
Troilus
Claims
Québec,
Canada
(continued)
2510728
2510729
2510730
2510731
2515565
2515594
2515603
2517129
2517191
2517192
2517193
2517194
2517195
2517196
2517197
2517198
2517199
2517200
2517201
2517202
2517203
2517204
2517205
2517206
2517207
2517208
2517209
2517210
2517211
2517212
2517213
2517214
2517215
2517216
2517217
2517218
2517232
2517233
2517234
2517235
2517236
2517237
2517238
2517239
2517240
2517241
2517242
2517243
2517244
2517245
2517246
2517247
2517378
2517379
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
Sayona | Annual Report 2023
123
Tenement Schedule
as at 30 September 2023
Canada (continued)
Project
Tenement
Interest
Project
Tenement
Interest
Project
Tenement
Interest
Troilus
Claims
Location
Québec,
Canada
Commodity
Lithium
Total Claims
1,824
2517380
2517381
2517382
2517383
2517384
2517385
2517386
2517387
2517388
2517389
2517390
2517391
2517392
2517393
2517394
2517395
2517396
2517397
2517398
2517399
2517400
2517401
2517402
2517403
2517404
2517405
2517406
2517407
2517408
2517409
2517410
2517411
2517412
2517413
2517414
2517415
2517416
2517417
2517418
2517419
2517420
2517421
2517422
2517423
2517424
2517425
2517426
2517427
2517564
2517565
2517566
2517567
2517568
2517569
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
124
Troilus
Claims
Québec,
Canada
(continued)
2517570
2517571
2517572
2517573
2517574
2517575
2517576
2517577
2517578
2517579
2517580
2517581
2517582
2517583
2517584
2517585
2517586
2517587
2517588
2517589
2517590
2517591
2517592
2517593
2517594
2517595
2517596
2517597
2517598
2517599
2517600
2517601
2517602
2517690
2517691
2517692
2517693
2517694
2517695
2517696
2517697
2517698
2517699
2517700
2517701
2517702
2517703
2517704
2517705
2517706
2517707
2517708
2517709
2517710
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
Troilus
Claims
Québec,
Canada
(continued)
2517711
2517712
2517713
2517714
2517715
2517716
2517717
2517718
2517719
2517720
2517721
2517722
2517723
2517724
2517725
2517726
2517727
2517728
2517729
2517730
2517731
2517732
2517733
2517734
2517735
2517740
2517741
2517742
2517743
2517744
2518087
2518088
2518089
2518090
2518091
2518092
2518093
2518094
2518095
2518096
2518097
2518098
2518099
2518100
2518101
2518102
2518103
2518104
2518105
2518106
2518107
2518108
2518109
2518110
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
Operating
and Financial
Review
Governance
Financial
Report
Additional
Information
Tenement Schedule
as at 30 September 2023
Canada (continued)
Project
Tenement
Interest
Project
Tenement
Interest
Project
Tenement
Interest
Troilus
Claims
Location
Québec,
Canada
Commodity
Lithium
Total Claims
1,824
2518111
2518112
2518113
2518114
2518115
2518116
2518117
2518129
2518130
2518131
2518132
2518133
2518134
2518135
2518136
2518137
2518138
2518139
2518140
2518141
2518142
2518143
2518144
2518145
2518146
2518147
2518148
2518149
2518150
2518151
2518152
2518153
2518931
2519330
2519775
2534958
2541680
2541681
2541819
2541820
2541821
2541822
2541823
2541824
2541825
2541826
2541827
2541828
2541829
2541830
2541831
2541832
2541833
2541834
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
Troilus
Claims
Québec,
Canada
(continued)
2541835
2541836
2541837
2541838
2541839
2541840
2541841
2541842
2541843
2542167
2542168
2542169
2542170
2542817
2542818
2542819
2542820
2542821
2542822
2542823
2542824
2542825
2542826
2542827
2542828
2542829
2542830
2542831
2543367
2543368
2543369
2543370
2543551
2543552
2543558
2543559
2543560
2543561
2543562
2543563
2543564
2543565
2543566
2543567
2543568
2543569
2543573
2543653
2543654
2543655
2543656
2543657
2543658
2543659
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
Troilus
Claims
Québec,
Canada
(continued)
2543660
2543661
2543662
2543781
2543782
2543783
2543784
2543785
2543786
2543787
2543788
2543789
2544905
2544906
2544907
2544908
2544909
2544910
2544911
2544912
2544913
2544914
2544915
2544916
2544917
2544918
2544919
2544920
2544921
2544922
2555479
2555480
2555481
2555482
2555483
2555484
2555485
2555486
2555487
2555488
2555489
2555490
2555491
2555492
2555493
2555494
2555495
2555496
2555497
2555498
2555499
2555500
2555501
2555502
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
Sayona | Annual Report 2023
125
Tenement Schedule
as at 30 September 2023
Canada (continued)
Project
Tenement
Interest
Project
Tenement
Interest
Project
Tenement
Interest
Troilus
Claims
Location
Québec,
Canada
Commodity
Lithium
Total Claims
1,824
2555503
2555504
2555515
2555516
2555520
2555521
2555522
2555523
2555524
2555525
2555526
2555527
2555528
2555529
2555530
2555531
2555537
2555538
2555539
2555540
2555541
2555542
2555543
2555544
2555547
2555548
2555549
2555550
2555551
2555555
2555556
2555557
2555558
2555559
2555560
2555561
2555562
2555563
2555564
2555565
2555566
2555567
2555568
2555569
2555570
2555571
2555572
2555573
2555574
2555575
2555576
2555577
2555578
2555579
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
126
Troilus
Claims
Québec,
Canada
(continued)
2555580
2555581
2555582
2555583
2555584
2555585
2555586
2555587
2555588
2555589
2555590
2555591
2555592
2555593
2555594
2555595
2555596
2555597
2555598
2555599
2555600
2555601
2555602
2555603
2555604
2555605
2555606
2555607
2555608
2555609
2555610
2555611
2555614
2555615
2555616
2555617
2555618
2555621
2555622
2555623
2555624
2555625
2555626
2555630
2555631
2555632
2555633
2555634
2555635
2555687
2555688
2555689
2555690
2555691
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
Troilus
Claims
Québec,
Canada
(continued)
2555692
2555693
2555694
2555695
2555696
2555697
2555698
2555699
2555700
2555701
2555702
2555703
2555704
2555705
2555706
2555707
2555708
2555709
2555710
2555711
2555712
2555713
2555714
2555715
2555716
2555717
2555718
2555719
2555720
2555721
2555722
2555723
2555724
2555725
2555726
2555727
2555728
2555729
2555730
2555731
2555732
2555733
2555734
2555735
2555736
2555737
2555738
2555739
2555740
2555741
2555742
2555743
2555744
2555745
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
Operating
and Financial
Review
Governance
Financial
Report
Additional
Information
Tenement Schedule
as at 30 September 2023
Canada (continued)
Project
Tenement
Interest
Project
Tenement
Interest
Project
Tenement
Interest
Troilus
Claims
Location
Québec,
Canada
Commodity
Lithium
Total Claims
1,824
2555746
2555747
2555748
2555749
2555750
2555751
2555752
2555753
2555754
2555755
2555756
2555757
2555758
2555759
2555760
2555761
2555762
2555763
2555764
2555765
2555766
2555767
2555768
2555769
2555770
2555771
2555772
2555773
2555774
2555775
2555776
2555777
2555778
2555779
2555780
2555781
2555782
2555783
2555784
2555785
2555786
2555787
2555788
2555789
2555790
2555791
2555792
2555793
2555794
2555795
2555796
2555797
2555798
2555799
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
Troilus
Claims
Québec,
Canada
(continued)
2555800
2555801
2555802
2555803
2555804
2555805
2555814
2555815
2555816
2555817
2555818
2555819
2555820
2555821
2555822
2555823
2555824
2555825
2555826
2555827
2555828
2555829
2555830
2555831
2555832
2555833
2555834
2555835
2555836
2555847
2555848
2555849
2555850
2555851
2555852
2555853
2555854
2555855
2555856
2555857
2555858
2555859
2555860
2555861
2555862
2555863
2555864
2555865
2555866
2555867
2555868
2555869
2555870
2555871
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
Troilus
Claims
Québec,
Canada
(continued)
2555872
2555873
2555874
2555875
2555876
2555877
2555878
2555879
2555880
2555881
2555882
2555883
2555884
2555885
2555886
2555887
2555888
2555889
2555890
2555891
2555892
2555893
2555894
2555895
2555896
2555897
2555898
2555899
2555900
2555901
2555902
2555903
2555904
2555905
2555906
2555907
2555908
2555909
2555910
2555911
2555912
2555913
2555914
2555915
2555916
2555917
2555918
2555919
2555920
2555921
2555922
2555923
2555924
2555925
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
Sayona | Annual Report 2023
127
Tenement Schedule
as at 30 September 2023
Canada (continued)
Project
Tenement
Interest
Project
Tenement
Interest
Project
Tenement
Interest
Troilus
Claims
Location
Québec,
Canada
Commodity
Lithium
Total Claims
1,824
2555926
2555927
2555928
2555929
2555930
2555931
2555932
2555933
2555934
2555935
2555936
2555937
2555938
2555939
2555940
2555941
2555942
2555943
2555944
2555945
2555946
2555947
2555948
2555949
2555950
2555951
2555952
2555953
2555954
2555955
2555956
2555957
2555958
2555959
2555960
2555961
2555962
2555963
2555964
2555965
2555966
2555967
2555968
2555969
2555970
2555971
2555972
2555973
2555974
2555975
2555976
2555977
2555978
2555979
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
128
Troilus
Claims
Québec,
Canada
(continued)
2555980
2555981
2555982
2555983
2555984
2555985
2555986
2555987
2555988
2555989
2555990
2555991
2555992
2555993
2555994
2555995
2555996
2555997
2555998
2555999
2556000
2556001
2556002
2556003
2556004
2556005
2556006
2556007
2556008
2556009
2556010
2556011
2556012
2556013
2556014
2556015
2556016
2556017
2556018
2556019
2556020
2556021
2556022
2556023
2556024
2556025
2556026
2556027
2556028
2556029
2556030
2556031
2556032
2556033
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
Troilus
Claims
Québec,
Canada
(continued)
2556034
2556035
2556036
2556037
2556038
2556039
2556040
2556041
2556042
2556043
2556044
2556045
2556046
2556047
2556048
2556049
2556050
2556051
2556052
2556053
2556054
2556055
2556056
2556057
2556058
2556059
2556060
2556061
2556062
2556063
2556064
2556065
2556066
2556067
2556068
2556069
2556070
2556071
2556072
2556073
2556074
2556075
2556076
2556077
2556078
2556079
2556080
2556081
2556082
2556083
2556084
2556085
2556086
2556087
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
Operating
and Financial
Review
Governance
Financial
Report
Additional
Information
Tenement Schedule
as at 30 September 2023
Canada (continued)
Project
Tenement
Interest
Project
Tenement
Interest
Project
Tenement
Interest
Troilus
Claims
Location
Québec,
Canada
Commodity
Lithium
Total Claims
1,824
2556088
2556089
2556090
2556091
2556092
2556093
2556094
2556095
2556096
2556097
2556098
2556099
2556100
2556101
2556102
2556103
2556104
2556105
2556106
2556107
2556108
2556109
2556110
2556111
2556112
2556113
2556114
2556115
2556116
2556117
2556118
2556119
2556120
2556121
2556122
2556123
2556124
2556125
2556126
2556127
2556128
2556129
2556130
2556131
2556132
2556133
2556134
2558334
2560642
2560643
2560644
2560645
2560646
2560647
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
Troilus
Claims
Québec,
Canada
(continued)
2560648
2560649
2560650
2560651
2560652
2560653
2560656
2560657
2560658
2560659
2560660
2560661
2560664
2560665
2560666
2560667
2560670
2560671
2560672
2561222
2561223
2561224
2561225
2561226
2561227
2561228
2561253
2561254
2561649
2561842
2561843
2561844
2561845
2561846
2563696
2563697
2563698
2563699
2563700
2563701
2563702
2563703
2563704
2563705
2563706
2563707
2563708
2563709
2563710
2563711
2563712
2563713
2563714
2563715
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
Troilus
Claims
Québec,
Canada
(continued)
2563716
2563717
2563718
2563719
2564837
2565953
2565954
2565955
2565956
2565957
2565958
2566120
2566121
2566122
2566123
2566124
2566125
2566126
2566963
2566964
2566965
2566966
2566967
2566968
2566969
2566970
2566971
2566972
2566973
2566974
2566975
2566976
2566977
2566978
2567332
2567333
2567334
2567335
2567336
2567337
2567338
2567339
2567340
2567341
2567470
2567471
2567472
2567473
2567474
2567475
2567476
2567477
2567478
2567479
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
Sayona | Annual Report 2023
129
Tenement Schedule
as at 30 September 2023
Canada (continued)
Project
Tenement
Interest
Project
Tenement
Interest
Project
Tenement
Interest
Troilus
Claims
Location
Québec,
Canada
Commodity
Lithium
Total Claims
1,824
2567484
2567485
2567486
2567487
2567488
2567489
2567490
2567491
2567492
2567493
2567494
2567495
2567496
2567497
2567498
2567499
2567500
2567501
2567502
2567503
2567504
2567505
2567506
2567507
2567508
2567509
2567510
2567511
2567512
2567513
2567514
2567515
2571228
2571229
2571230
2571231
2571232
2571233
2571234
2571235
2571236
2571237
2571238
2571239
2571240
2571241
2571242
2571243
2571244
2571245
2571246
2571247
2571248
2571249
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
130
Troilus
Claims
Québec,
Canada
(continued)
2571250
2571251
2571252
2571253
2571254
2571255
2571256
2571257
2571258
2571259
2571260
2571261
2571262
2571263
2571264
2571265
2571266
2571267
2571268
2571269
2571270
2571271
2571272
2571273
2571274
2571275
2571276
2571277
2571278
2571279
2571280
2571281
2571282
2571283
2571284
2571285
2571286
2571287
2571288
2571289
2571290
2571291
2571292
2571293
2571294
2571295
2571296
2571297
2571298
2571299
2571300
2571301
2571302
2571303
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
Troilus
Claims
Québec,
Canada
(continued)
2571304
2571305
2571306
2571307
2571348
2571349
2571350
2571351
2571352
2571353
2571354
2571355
2571356
2571357
2571358
2571359
2571360
2571361
2571362
2571363
2571364
2571365
2571366
2571367
2571368
2571369
2571370
2571371
2571372
2571373
2571374
2571375
2571376
2571377
2571378
2571379
2571380
2571381
2571382
2571383
2571384
2571385
2571386
2571387
2571388
2571389
2571390
2571391
2571392
2571393
2571394
2571395
2571396
2571397
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
Operating
and Financial
Review
Governance
Financial
Report
Additional
Information
Tenement Schedule
as at 30 September 2023
Canada (continued)
Project
Tenement
Interest
Project
Tenement
Interest
Project
Tenement
Interest
Troilus
Claims
Location
Québec,
Canada
Commodity
Lithium
Total Claims
1,824
2571398
2571399
2571400
2571401
2571402
2571403
2571404
2571405
2571406
2571407
2571408
2571409
2571410
2571411
2571412
2571413
2571414
2571415
2571416
2571417
2571418
2571419
2571420
2571421
2571422
2571423
2571424
2571425
2571426
2571427
2571607
2571608
2571609
2571610
2571611
2571612
2571613
2571614
2571615
2571616
2571617
2571618
2571619
2571620
2571621
2571622
2571623
2571624
2571625
2571626
2571627
2571628
2571629
2571630
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
Troilus
Claims
Québec,
Canada
(continued)
2571631
2571632
2571633
2571634
2571635
2571636
2571637
2571638
2571639
2571640
2571641
2571642
2571643
2571644
2571645
2571646
2571647
2571648
2571649
2571650
2571651
2571652
2571653
2571654
2571655
2571656
2571657
2571658
2571659
2571660
2571661
2571662
2571663
2571664
2571665
2571666
2571667
2571668
2571669
2571670
2571671
2571672
2571673
2571674
2571675
2571676
2571677
2571678
2571679
2571680
2571681
2571682
2571683
2571684
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
Troilus
Claims
Québec,
Canada
(continued)
2571685
2571686
2571827
2571828
2571829
2571830
2571831
2571832
2571833
2571834
2571835
2571836
2571837
2571838
2571839
2571840
2571841
2571842
2571843
2571844
2571845
2571846
2571847
2571848
2571849
2571850
2571851
2571852
2571853
2571854
2571855
2571856
2571857
2571858
2571859
2571860
2571861
2571862
2571863
2571864
2571865
2571866
2571867
2571868
2571869
2571870
2571871
2571872
2571873
2571874
2571875
2571876
2571877
2571878
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
Sayona | Annual Report 2023
131
Tenement Schedule
as at 30 September 2023
Canada (continued)
Project
Tenement
Interest
Project
Tenement
Interest
Troilus
Claims
Québec,
Canada
(continued)
2575778
2576046
2576047
2576048
2576049
2576050
2576051
2576052
2576053
2576054
2576055
2576056
2576057
2576058
2576059
2576060
2576061
2576062
2576063
2576064
2576065
2576066
2576067
2576068
2576069
2576070
2576071
2576072
2576073
2576074
2576075
2576076
2576077
2576078
2576079
2576080
2576081
2576082
2576083
2576084
2576085
2576086
2576087
2576088
2576089
2576090
2576091
2576092
2582568
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
Troilus
Claims
Location
Québec,
Canada
Commodity
Lithium
Total Claims
1,824
2571879
2571880
2571881
2571882
2571883
2571884
2571885
2571886
2571887
2571888
2571889
2571890
2571891
2571892
2571893
2571894
2571895
2571896
2574357
2574420
2574421
2574422
2574423
2574424
2574425
2574426
2574427
2574428
2574429
2574430
2574431
2574432
2574433
2574434
2574435
2574436
2574437
2574438
2574439
2574440
2574441
2574442
2574443
2574444
2574445
2574446
2574447
2574448
2574449
2574450
2574451
2574452
2574453
2574454
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
132
Operating
and Financial
Review
Governance
Financial
Report
Additional
Information
Shareholder Information
Securities Exchanges
As at 30 September 2023, Sayona Mining Limited has a primary listing on the Australian Securities Exchange (ASX Code: SYA) and a secondary
listing on the OTCQB Venture Market in the United States (OTCQB Code: SYAXF).
Share Ownership
Voting Rights
Ordinary shares in Sayona Mining Limited carry voting rights of one vote per share. Options and rights to shares in Sayona Mining Limited do not
carry voting rights until the options have been exercised or rights have vested and converted to ordinary shares, at which point they will carry
voting rights of one vote per share.
Distribution of Shareholdings
The following table shows the distribution of Sayona Mining Limited shareholders by size of shareholding, number of shareholders and number
of shares as at 30 September 2023:
Size of holding
1 – 1,000
1,001 – 5,000
5,001 – 10,000
10,001 – 100,000
100,001 and over
Total
Number of
shareholders
Number of
shares
Percentage of
shares on issue
463
9,063
7,403
20,955
7,974
45,858
103,565
29,685,787
58,117,761
803,648,392
9,401,740,509
10,293,296,014
0.00
0.29
0.56
7.81
91.34
100.00
As at 30 September 2023, there were 9,928 shareholders holding less than a marketable parcel (A$500) of shares in Sayona Mining Limited based
on the closing market price of A$0.093.
Distribution of Rights Holdings
The following table shows the distribution of rights holders in Sayona Mining Limited by size of rights holding, number of rights holders and
number of rights as at 30 September 2023:
Size of holding
1 – 1,000
1,001 – 5,000
5,001 – 10,000
10,001 – 100,000
100,001 and over
Total
Number of
rights holders
-
-
-
-
4
4
Number of
rights
-
-
-
-
25,689,276
25,689,276
Percentage of
rights on issue
-
-
-
-
100.00
100.00
Substantial Shareholders
As at 9 October 2023, Sayona Mining Limited had two substantial shareholders who, together with their associates, held 5% or more of the voting
rights in Sayona Mining Limited, as notified to the Company under the Corporations Act:
Name
Piedmont Lithium
State Street Corporation
Date notice
received
Number of
shares in notice
Percentage of
capital in notice
5 October 2023
9 October 2023
1,249,806,231
516,944,874
12.14
5.02
Sayona | Annual Report 2023
133
Shareholder Information
Share Ownership (continued)
Twenty Largest Shareholders in Sayona Mining Limited
The following table shows the twenty largest shareholders of ordinary shares in Sayona Mining Limited by number of shares and percentage of
shares on issue as at 30 September 2023:
Name
Number of
shares held
Percentage of
shares on issue
Piedmont Lithium Limited
Citicorp Nominees Pty Limited
J P Morgan Nominees Australia Pty Limited
Acuity Capital Investment Management Pty Ltd
Piedmont Lithium Inc
BNP Paribas Noms Pty Ltd
BNP Paribas Nominees Pty Ltd ACF Clearstream
Cropanly Pty Ltd
1.
2. HSBC Custody Nominees (Australia) Limited
3.
4.
5.
6.
7.
8.
9.
10. Bond Street Custodians Limited
11. Terryjoy Pty Ltd
12. Troilus Gold Corp
13. BNP Paribas Nominees Pty Ltd
14. Bond Street Custodians Limited
15. HSBC Custody Nominees (Australia) Limited – A/C 2
16. P Point Pty Ltd
17. Mr Robert Veitch + Mrs Elaine Veitch
18. National Nominees Limited
19. Finclear Pty Ltd
20. Mr Allan Charles Buckler
Top 20 Holders of Ordinary Fully Paid Shares in Sayona Mining Limited
Total Remaining Holders Balance
Restricted Securities
As at 30 September 2023, Sayona Mining Limited does not have any restricted securities on issue.
Share Registry
Registers of securities are held at the following address:
Computershare Investor Services Pty Limited
Level 1, 200 Mary Street
Brisbane, Queensland 4000
Australia
1,000,383,020
739,867,626
679,187,381
406,351,435
250,000,000
249,423,211
240,605,251
193,728,747
149,709,011
105,581,028
105,571,221
74,731,797
72,019,157
68,007,044
65,495,290
61,262,616
58,984,068
50,877,626
47,739,259
41,326,435
4,660,851,223
5,632,444,791
9.72
7.19
6.60
3.95
2.43
2.42
2.34
1.88
1.45
1.03
1.03
0.73
0.70
0.66
0.64
0.60
0.57
0.49
0.46
0.40
45.28
54.72
Alternatively, shareholders can access their current holding details, view their transaction history, download statements and documents, change
their address, update their communication preferences and banking details, and check their tax details online via Computershare’s Investor Centre
at www.computershare.com.
Further information regarding our share registry is included in the Corporate Directory on the inside back cover.
Electronic Communications
Shareholders are encouraged to access all Sayona communications electronically. Shareholders that wish to receive electronic communications
can update their preferences online or by telephoning the relevant Computershare Investor Centre.
134
Glossary
Abbreviations and Terms
AASB
Australian Accounting Standards Board.
Abitibi-Témiscamingue
Region in Québec, Canada comprising the North American Lithium
(NAL) operation, Authier Lithium Project, Tansim Lithium Project,
and Vallée Lithium Project.
AGM
Annual General Meeting.
AIG
Australian Institute of Geoscientists.
ASIC (Australian Securities and Investments Commission)
Australian Government agency that enforces laws relating to
companies, securities, financial services and credit in order to
protect consumers, investors and creditors.
ASX (Australian Securities Exchange)
A multi-asset class, vertically integrated exchange group that
functions as a market operator, clearing house and payments
system facilitator. The ASX oversees compliance with its operating
rules, promotes standards of corporate governance among
Australia’s listed companies, and helps educate retail investors.
ASX Listing Rules
The rules governing the listing of an entity and the quotation of its
securities on the ASX.
AusIMM
The Australasian Institute of Mining and Metallurgy.
BAPE
Bureau d’audiences publiques sur l’environnement.
Beneficiation
The process of physically separating ore from gangue to produce a
mineral concentrate prior to subsequent processing.
Biodiversity
The variety of life on Earth – the different animals, plants and micro-
organisms, their genetic diversity, and the ecosystems of which they
are a part.
Board
The Board of Directors of Sayona Mining Limited.
Brownfield
An exploration or development project located within an existing
mineral province, which
infrastructure and
management with an existing operation.
is able to share
CEO
Chief Executive Officer.
CFO
Chief Financial Officer.
CIF (Cost, Insurance and Freight)
A contractual term which defines the responsibility and division of
cost and risk between buyer and seller, in which the buyer assumes
all risks and costs for unloading the goods and clearing the goods
for import. The seller is responsible for clearing the goods for export
and bears the cost of freight and insurance to the port of
destination. Risk passes from seller to buyer once the goods are on
board the vessel at the port of shipment.
Operating
and Financial
Review
Governance
Financial
Report
Additional
Information
CLM
Consolidated Lithium Metals Inc.
Company
Sayona Mining Limited, unless otherwise stated.
Competent Person
A minerals industry professional who is a Member or Fellow of The
Australasian Institute of Mining and Metallurgy (AusIMM), or the
‘Recognised
Australian Institute of Geoscientists (AIG), or a
Professional Organisation’, as listed on the JORC and ASX websites.
These organisations have enforceable disciplinary processes,
including the powers to suspend or expel a member.
A Competent Person must have a minimum of five years’ experience
working with the style of mineralisation or type of deposit under
consideration and relevant to the activity which that person is
undertaking (JORC Code).
Consolidated Group
Sayona Mining Limited and its controlled entities, unless otherwise
stated.
Contractor
An individual or company contracted by Sayona to do work on its
behalf and under its control with respect to location, work practices
and application of health and safety standards.
Corporations Act
Corporations Act 2001 (Cth).
COVID-19
An infectious disease caused by the SARS-CoV-2 virus.
Cut-off Grade
The lowest grade (or quality) of mineralised material that qualifies
as economically mineable and available in a given deposit. It may
be defined on the basis of economic evaluation, or on physical or
chemical attributes that define an acceptable product specification
(JORC Code).
Decarbonisation
Avoiding or reducing the greenhouse gas emissions associated with
an activity.
DFS
Definitive Feasibility Study.
EBIT
Earnings before interest and tax.
EBITDA
Earnings before interest, tax, depreciation and amortisation.
Eeyou Istchee James Bay
Region in Québec, Canada comprising the Lac Albert Lithium
Project, Moblan Lithium Project and Troilus Claims.
Employee
Any person in full-time, part-time or casual employment, engaged by
Sayona on a temporary or permanent basis pursuant to a contract
of service.
EPS
Earnings per share.
ESG
Environmental, social and governance.
ESIA
Environmental and Social Impact Assessment.
Sayona | Annual Report 2023
135
Glossary
Executive KMP
Key Management Personnel (KMP) comprising the Chief Executive
Officer, Chief Financial Officer and Chief Executive Officer, Sayona
Canada. Executive KMP does not include Non-Executive Directors.
Exploration Results
Data and information generated by mineral exploration programs
that might be of use to investors but which do not form part of a
declaration of Mineral Resources or Ore Reserves (JORC Code).
Flotation
A method of selectively recovering minerals from finely ground ore
using a froth created in water by specific reagents. In the flotation
process, certain mineral particles are induced to float by becoming
attached to bubbles of froth whilst the unwanted mineral particles
sink.
FOB (Free On Board)
A contractual term which defines the responsibility and division of
cost and risk between buyer and seller, in which the buyer assumes
all risks and costs for goods once the goods are on board the vessel
at the port of shipment, including the cost of freight and insurance.
The seller is responsible for clearing the goods for export and
loading them on board the vessel at the port of shipment.
FTS (Flow Through Share)
A type of common share that permits the original investor to claim
a tax deduction equal to the amount invested.
The flow-through share regime allows public companies to transfer
the tax deductibility of eligible exploration and development activity
conducted in Canada to investors.
FX
Foreign exchange.
GST
Goods and Services Tax.
Grade
Any physical or chemical measurement of the characteristics of the
material of interest in samples or product (JORC Code).
Greenfield
An exploration or development project that refers to a new venture
or operation, without any association or proximity to an existing
operation.
GRI (Global Reporting Initiative)
An
framework and standards for sustainability reporting.
independent organisation that has established a global
Groundwater
Water beneath the earth’s surface, including beneath the seabed,
which fills pores or cracks between porous media such as soil, rock
and sand, often forming aquifers.
Group
Sayona Mining Limited and its controlled entities, unless otherwise
stated.
IASB
International Accounting Standards Board.
IFC
International Finance Corporation.
IFRS (International Financial Reporting Standards)
Accounting standards as issued by the International Accounting
Standards Board (IASB).
136
Indicated Mineral Resource
That part of a Mineral Resource for which quantity, grade (or quality),
densities, shape and physical characteristics are estimated with
sufficient confidence to allow the application of Modifying Factors
in sufficient detail to support mine planning and evaluation of the
economic viability of the deposit.
Geological evidence is derived from adequately detailed and reliable
exploration, sampling and testing gathered through appropriate
locations such as outcrops, trenches, pits,
techniques from
workings and drill holes, and is sufficient to assume geological and
grade (or quality) continuity between points of observation where
data and samples are gathered.
An Indicated Mineral Resource has a lower level of confidence than
that applying to a Measured Mineral Resource and may only be
converted to a Probable Ore Reserve (JORC Code).
Inferred Mineral Resource
That part of a Mineral Resource for which quantity and grade (or
quality) are estimated on the basis of limited geological evidence
and sampling. Geological evidence is sufficient to imply but not
verify geological and grade (or quality) continuity. It is based on
exploration, sampling and testing information gathered through
appropriate techniques from locations such as outcrops, trenches,
pits, workings and drill holes.
An Inferred Mineral Resource has a lower level of confidence than
that applying to an Indicated Mineral Resource and must not be
converted to an Ore Reserve. It is reasonably expected that the
majority of Inferred Mineral Resources could be upgraded to
Indicated Mineral Resources with continued exploration. (JORC
Code).
ISSB
International Sustainability Standards Board.
JORC (Joint Ore Reserves Committee)
A committee comprising representatives of each of the three parent
bodies – The Minerals Council of Australia (MCA), The Australasian
Institute of Mining and Metallurgy (AusIMM), and the Australian
Institute of Geoscientists (AIG), as well as representatives of the
Australian Securities Exchange (ASX), the Financial Services
Institute of Australasia (FinSIA) and the accounting profession, and
an observer from the Association of Mining and Exploration
Companies (AMEC).
JORC Code
The 2012 Edition of the Australasian Code for reporting of
Exploration Results, Mineral Resources and Ore Reserves, prepared
by the JORC.
KMP (Key Management Personnel)
People who have authority and responsibility for planning, directing
and controlling the activities of Sayona, either directly or indirectly.
Li2CO3
Lithium carbonate.
Li2O
Lithium oxide.
LiOH
Lithium hydroxide.
LOM (Life of Mine)
The period in which Total Ore Reserves are expected to be extracted
through planned mining activities.
LTI
Long-term incentive.
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and Financial
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Glossary
MAC
Mining Association of Canada.
NPV
Net present value.
Measured Mineral Resource
That part of a Mineral Resource for which quantity, grade (or quality),
densities, shape and physical characteristics are estimated with
confidence sufficient to allow the application of Modifying Factors
to support detailed mine planning and final evaluation of the
economic viability of the deposit.
is derived from detailed and
Geological evidence
reliable
exploration, sampling and testing gathered through appropriate
techniques from
locations such as outcrops, trenches, pits,
workings and drill holes, and is sufficient to confirm geological and
grade (or quality) continuity between points of observation where
data and samples are gathered.
A Measured Mineral Resource has a higher level of confidence than
that applying to either an Indicated Mineral Resource or an Inferred
Mineral Resource. It may be converted to a Proved Ore Reserve or,
under certain circumstances, a Probable Ore Reserve (JORC Code).
MERN
Ministere de I'Energie et des Ressources Naturelles.
Mineral Reserve
The economically mineable part of a Measured Mineral Resource or
Indicated Mineral Resource. It includes diluting materials and
allowances for losses, which may occur when the material is mined
or extracted and is defined by studies at pre-feasibility or feasibility
level as appropriate that include application of Modifying Factors.
Such studies demonstrate that, at the time of reporting, extraction
could reasonably be justified.
Mineral Resource
A concentration or occurrence of solid material of economic
interest in or on the Earth’s crust in such form, grade (or quality) and
quantity that there are reasonable prospects for eventual economic
extraction. The location, quantity, grade (or quality), continuity and
other geological characteristics of a Mineral Resource are known,
estimated or interpreted from specific geological evidence and
knowledge, including sampling. Mineral Resources are sub-divided,
in order of increasing geological confidence, into Inferred, Indicated
and Measured categories (JORC Code).
Mineralisation
Any single mineral or combination of minerals occurring in a mass
or deposit of economic interest. The term is intended to cover all
forms in which mineralisation might occur, whether by class of
deposit, mode of occurrence, genesis or composition (JORC Code).
Mining
All activities related to the extraction of metals, minerals and
gemstones from the earth, whether surface or underground, and by
any method.
Modifying Factors
Considerations used to convert Mineral Resources to Ore Reserves
including, but not limited to, mining, processing, metallurgical,
infrastructure, economic, marketing, legal, environmental, social
and governmental factors (JORC Code).
NAL
North American Lithium.
NSR (Net Smelter Return)
Revenue derived from the sale of products and concentrates
following the application of metallurgical recoveries, less any
allowable deductions such as transport costs, treatment charges,
refining charges, penalties, freight and royalties.
Open Pit
Surface mining activity in which the working area is kept open to the
sky.
Ore Reserve
The economically mineable part of a Measured Mineral Resource or
Indicated Mineral Resource. It includes diluting materials and
allowances for losses, which may occur when the material is mined
or extracted and is defined by studies at pre-feasibility or feasibility
level as appropriate that include application of Modifying Factors.
Such studies demonstrate that, at the time of reporting, extraction
could reasonably be justified (JORC Code).
OTCQB
OTCQB Venture Market.
Probable Ore Reserve
The economically mineable part of an Indicated and, in some
circumstances, a Measured Mineral Resource. The confidence in
the Modifying Factors applying to a Probable Ore Reserve is lower
than that applying to a Proved Ore Reserve (JORC Code).
Proved Ore Reserve
The economically mineable part of a Measured Mineral Resource. A
Proved Ore Reserve implies a high degree of confidence in the
Modifying Factors (JORC Code).
QST
Québec Sales Tax.
Recovery
The percentage of material of interest that is extracted during
mining or processing; a measure of mining or processing efficiency.
Reserve Life
The period in which Total Ore Reserves are expected to be extracted
through planned mining activities.
ROM (Run of Mine)
Product mined in the course of regular mining activities. Tonnes
include allowances for diluting materials and for losses that occur
when the material is mined.
S&P
Standard and Poor’s.
SASB (Sustainability Accounting Standards Board)
A non-profit organisation that develops standards focused on the
financial impacts of sustainability.
Sayona
Sayona Mining Limited and its controlled entities, unless otherwise
stated.
STI
Short-term incentive.
Stockpile
An accumulation of ore or mineral built up when demand slackens
or when the treatment plant or beneficiation equipment
is
incomplete or temporarily unable to process the mine output; any
heap of material formed to create a buffer for loading or other
purposes, or material dug and piled for future use.
Surface Water
All water naturally open to the atmosphere including rivers, lakes,
creeks and external water dams but excluding water from oceans,
seas and estuaries (e.g. precipitation and runoff including snow and
hail).
Sayona | Annual Report 2023
137
Glossary
Sustainable Development
Activity
the present without
the needs of
compromising the ability of future generations to meet their own
needs.
that supports
Units of Measure
%
percentage or per cent
Tailings
The portions of washed or milled ore that are too poor to be treated
further, or remain after the required metals and minerals have been
extracted.
TCFD
Task Force on Climate-Related Financial Disclosures.
TNFD
Task Force on Nature-Related Financial Disclosures.
Total Mineral Resources
The sum of Measured Mineral Resources, Indicated Mineral
Resources and Inferred Mineral Resources.
AUD, A$ or $
Australian dollars
CAD or C$
Canadian dollars
dmt
dry metric tonnes
ha
hectare
km
kilometre
Total Ore Reserves
The sum of Proved Ore Reserves and Probable Ore Reserves.
kt
thousand tonnes
ktpa
thousand tonnes per annum
kwmt
thousand wet metric tonnes
m
metre
Mt
million tonnes
t
tonnes
tpa
tonnes per annum
tpd
tonnes per day
tph
tonnes per hour
USD or US$
United States dollars
TRIFR (Total Recordable Injury Frequency Rate)
The sum of recordable injuries multiplied by 1,000,000, divided by
exposure hours for employees and contractors. TRIFR is stated in
units per million hours worked.
TSM (Towards Sustainable Mining)
A globally recognised performance system that helps mining
companies evaluate and manage their environmental and social
responsibilities.
TSR (Total Shareholder Return)
The return delivered to shareholders over a certain period through
the change in share price and any dividends paid.
TSX
Toronto Stock Exchange.
Underground
Underground mining activity in which the working area is below the
surface of the earth.
Undue Barriers
A situation of cumulative and dynamic inequality resulting from
workplace interactions, practices, decisions or behaviours, whether
individual or institutional, that have adverse effects, intended or
unintended, on members of groups covered by section 10 of the
Charter of Rights and Freedoms.
This may include subtle discrimination and racism that influence the
employment opportunities of racialised minorities or ethno-racial
discrimination in hiring, such as the decision to reject a candidate
based on origin, race or colour, whether consciously or not.
UNSDG (United Nations Sustainable Development Goals)
Sustainable development goals adopted by the United Nations in
2015 as a universal call to action to end poverty, protect the planet,
and ensure that all people enjoy peace and prosperity.
Wet Metric Tonnes
Production is often quoted in terms of wet metric tonnes (wmt). To
adjust from wet metric tonnes to dry metric tonnes (dmt), a factor
is applied based on moisture content.
Yield
The percentage of material of interest that is extracted during
mining or processing; a measure of mining or processing efficiency.
138
Notes
Operating
and Financial
Review
Governance
Financial
Report
Additional
Information
Sayona |
Annual Report 2023
139
Notes
140
Operating
and Financial
Review
Governance
Financial
Report
Additional
Information
Corporate Directory
m any
Say na Minin Limite
ABN 26 091 951 978
The m any is liste n the Australian Se urities Ex han e (ASX)
ASX e: SYA
The m any is u te n the T B Venture Market ( T B)
T B e: SYAXF
ire t rs
Mr James Br wn
Exe utive ire t r an Interim hief Exe utive ffi er
Mr Allan Bu kler
N n-Exe utive ire t r
Mr Paul rawf r
Exe utive ire t r an hief Finan ial ffi er
Mr Phili Lu as
N n-Exe utive ire t r
Exe utive Lea ershi Team
Mr James Br wn
Exe utive ire t r an Interim hief Exe utive ffi er
Mr Paul rawf r
Exe utive ire t r an hief Finan ial ffi er
Mr uy Belleau
hief Exe utive ffi er, Say na ana a
m any Se retary
Mr Paul rawf r
www.sayonamining.com.au
ffi e L ati ns
Bris ane ffi e (Re istere ffi e)
Level 28, 10 Ea le Street
Bris ane, ueenslan 4000
Australia
P B x 1638
Bris ane, ueenslan 4001
Australia
Tele h ne: +61 7 3369 7058
Email:
inf @say naminin . m.au
We site: www.say naminin . m.au
M ntréal ffi e
1100, ul. Rene-Léves ue uest
Bureau 1230
M ntréal, ué e H3B 4N4
ana a
We site: www.say na. a
Au it r
Nexia Bris ane Au it Pty Lt
Level 28, 10 Ea le Street
Bris ane, ueenslan 4000
Australia
Tele h ne: +61 7 3229 2022
Lawyer
RT Lawyers
Level 27, 111 Ea le Street
Bris ane, ueenslan 4000
Australia
Tele h ne: +61 7 3309 7000
Share Re istry
m utershare Invest r Servi es Pty Limite
Level 1, 200 Mary Street
Bris ane, ueenslan 4000
Australia
Tele h ne: 1300 850 505 (within Australia)
+61 3 9415 4000 ( utsi e Australia)
Fa simile: +61 3 9473 2500
We site: www. m utershare. m
Sayona |
Annual Report 2023
141
say naminin . m.au